Market HIGHLIGHTS: Sensex ends 330 pts down from day’s high; Tech Mahindra jumps over 5%, Airtel up nearly 4%

Nikhil Kamath of Zerodha advises against trading in Nifty Bank till things normalise. He says that brokers are still investigating the problem but its hard to say if morning trades will hold or will be cancelled. All other contracts apart from Bank Nifty are working fine, CNBC TV18 reported

Most large private and PSU banks have announced a series of sharp cuts in Term/Savings rates to offset NIM pressures. In a recent move, AXSB and ICICIBC reduced their SA rate by 25bp to 3.0%, and SBIN lowered its SA rate by 5bp to 2.7%. While a sharp reduction in the repo rate has resulted in moderation in yield under the externally benchmark-based price regime loans, a reduction in deposit rates would offset margin pressure to some extent. Amid this backdrop, we assessed the margin trajectory for the major banks; we believe private banks are relatively well-positioned to preserve their margins even as we expect slight compression in NIMs at the sector level. We maintain our preference for ICICIBC, HDFCB, and SBIN: Motilal Oswal

The amendment to the Essential Commodities Act marks the beginning of a new chapter in India's agriculture history. The removal of inter-state agri-trade barriers will help farmers, especially, small farm owners and FPN's to sell their produce at an all India level with a better and transparent price discovery mechanism. The measure will improve the ease of doing business for the agri-sector and foster greater transparency, efficiency and trust across the value chain. Additionally, this will serve our goals of doubling farmers' income by 2022 as well as the Atmanirbhar Bharat Abhiyaan: Amith Agarwal, Co-Founder & CEO, AgriBazaar 

The normal exchange feeds for Banknifty options still aren't right due to an issue at NSE, Zerodha tweeted

Bank Nifty Options contracts are disabled in intraday Option Plus due to feeds connectivity issue at NSE, ICICI Direct Research said in a tweet

Reliance Industries shares were trading with gains for the consecutive day onThursday. RIL stock gained over 2 per cent to regains Rs 10 lakh crore market capitalisation. Around 2.25 PM, RIL m-cap stood at Rs 10,03,527.56 crore

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VST Tillers Tractors share price rallied 17 per cent to Rs 1,293 on the BSE in Thursday's weak trade after the company reported strong tractors sales of 633 units in May 2020.

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We remain positive on ARBP led by a robust ANDA pipeline for US generics, improving profitability in the EU owing to its foray into newer markets, and a shift in product manufacturing to India: Motilal Oswal

Spandana reported robust AUM growth of 16% qoq and 56% yoy in Q4 FY20. Borrower base grew 5% qoq, after being static in preceding three quarters. AUM/Borrower jumps 11% qoq and 50% yoy to Rs26,600 (still materially lower than industry average). Company made additional provisions of Rs1.29bn (2.75% of on-BS loans) for potential Covid impact. Even adjusted for it, the credit cost was sequentially higher due to write-off of the impacted portfolio in coastal Karnataka (adverse external influence) and Maharashtra (hit by floods): Yes Securities

Wheels India share price surged 20 per cent to hit upper circuit at Rs 513.10 apiece on BSE in otherwise weak trade on Thursday as company's board will consider payment of final dividend on June 17.

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Reliance Industries (RIL) shares were trading higher for the fourth straight session on BSE in Thursday’s otherwise weak market. RIL share price gained over 2 per cent to Rs 1,577.30 apiece after the company informed it has received a great response to its Rs 53,124 crore rights issue as it got subscribed 1.59 times. The stock is approaching its 52-week high of Rs 1,603.24, which is currently just 1.6 per cent away.

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We downgrade IndiGo to ADD (from BUY earlier). The management is shifting focus from growth to conserving cash and is revising its full-year capacity guidance to factor in the weaker demand environment. While we believe that IndiGo is better placed to withstand the downturn due to its dominant market share/scale, a healthier balance sheet (as compared to competition) and cost-cutting initiatives (phasing out of older CEO planes), the overall demand outlook is challenging: HDFC Securities

We remain cautious due to rich valuations (38x FY22 PE) coupled with group company investments (via ICD), rising gross debt and non-current investments. We value Britannia industries at 38x P/E on Mar-22E EPS, and derive a TP of Rs 2,852. Maintain REDUCE: HDFC Securities

Saregama India share price was locked in a 20 per cent upper circuit at Rs 400.70 apiece on Thursday after the music and entertainment company announced a global deal with social media giant Facebook. Saregama will license its music for video and other social experiences across Facebook and Instagram. Saregama India shares have surged over 45 per cent since Monday’s close of Rs 275.25 per share. However, the stock has rallied over 116 per cent from its March low of Rs 185. The stock opened at Rs 368 and quoted day’s high of 400.70 and low of Rs 355 in the session so far.

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Onshore, despite the global USD weakness, the RBI does not seem to be keen to step off the gas as far as Reserve accumulation is concerned. Rupee was one of the worst-performing currencies yesterday. While other Asian currencies were stronger anywhere between 0.4-1% against the US Dollar, the Rupee ended up weakening. As a result, we are continuing to see Rupee overvaluation corrects in real terms: Abhishek Goenka, Founder and CEO, IFA Global

Industrialist Rajiv Bajaj is the latest to join the chorus of the commentators, economists and businesspersons, who are of the opinion that India’s over two-month coronavirus lockdown was not the best thing to do. India got the worst of both worlds as far as the lockdown is concerned with the economic situation worsening than before, Bajaj Auto MD Rajiv Bajaj said during a conversation with Congress leader Rahul Gandhi.

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Reliance Industries completed India’s biggest ever rights issue of Rs 53,124 crore on Wednesday, and received a rave response from the eligible shareholders as the issue got subscribed 1.59 times. The rights issue witnessed huge interest from small and institutional investors alike. The allotment of the equity shares will take place on or about June 10, 2020, and the listing of rights shares on BSE and NSE is expected to take place on June 12 under separate ISIN, according to the company’s press release.

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The upside momentum continued for the sixth consecutive sessions, but the market faced overhead resistance at the high of 10175 and showed intraday weakness towards the end on Wednesday’s session. A small negative candle was formed on Wednesday at the swing high of 10175 levels. This pattern indicates an emergence of selling pressure/profit booking at the highs. The area of 10K mark has been a strong valuation levels over the last many months. Nifty has witnessed sharp upside bounces from near this 10K mark in March and Oct 2018 period.

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On the side, Titan Company was the top Sensex laggard, down 3 per cent followed by Kotak Mahindra Bank, ONGC, M&M, Bajaj Finance, Axis Bank, State Bank of India (SBI).

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Among Sensex gainers were Tech Mahindra, Sun Pharma, TCS, Power Grid, HDFC Bank, HCL Tech and ICICI Bank, all up in the range of 1-3 per cent.

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HDFC Life Insurance Company gained 4 per cent a day after the promoter sold 2.6 crore shares of the insurance company worth a little over Rs 1,274 crore through an open market transaction.

BSE Sensex and Nifty 50 were trading with gains on Thursday following the favourable global cues. HDFC Life jumped 4% post block deal.

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DLF, PI Industries: NIIT, PNB Gilts, SRF, DLF, PI Industries, Chemfab Alkalis, Cosmo Films, Filatex India, Igarashi Motors India, IL&FS Transportation Networks, Safari Industries, and Tourism Finance Corporation are among 15 companies that are scheduled to announce their March quarter earnings today.

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Today is a weekly expiry day, so one can see a big move on indices fronts. It is advisable for an option trader to avoid going short in OTM put or call for the next couple of days as the market may surprise with large moves. Sticking with a very short term trend with buying ATM options can fetch a good profit: Vishal Wagh, Head of Research, Bonanza Portfolio Ltd.

Nifty set to open flattish. The US market closed in green but futures are trading with cuts of 0.25%. Asian markets have given up the partial gains post opening in green. The market has witnessed profit booking in the last hour of trade yesterday, which has resulted in the 'Evening Doji Star' candlestick pattern in Nifty and Bankinfity futures: Vishal Wagh, Head of Research, Bonanza Portfolio Ltd.

We may see the Index consolidating or taking a breather for a few days before starting the next leg of rally. Given the positive global and domestic cues, the overall view on the markets continue to remain positive: Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

In overnight trade on Wall Street, US stock indices rallied broadly on the signs of economic recovery. The Dow Jones Industrial Average rose 527.24 points, or 2.05%, to 26,269.89, the S&P 500 gained 42.05 points, or 1.36%, to 3,122.87 and the Nasdaq Composite added 74.54 points, or 0.78%, to 9,682.91.

Asian stock market rose in the early trade, as expectations of stimulus from the government supported investor confidence in economic recovery from the coronavirus. Australian ASX 200 rose 1.09 per cent and Japan’s Nikkei was up 0.8 per cent

On Wednesday, S&P BSE Sensex ended the day 284 points or 0.84% higher, while the 50-stock Nifty ended the day at 10,061, up 82.40 points or 0.83%.