Market Highlights: Sensex ends 394 pts lower, Nifty holds on to 11,300; Axis Bank, HDFC, ICICI Bank top drags

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Updated: August 20, 2020 4:19:27 pm

Share Market News Today | Sensex, Nifty, Share Prices Highlights: Following global cues, Sensex and Nifty ended close to the day's low. Volatility surged over 4%.

stock market live news, stock market live, stock market live india, stock market live update, stock market live nse, stock market live news today, stock market live news in hindi, stock market live nse, stock market live nse/bse, nse stock market live, live bse nse stock market today, bse nse live stock market news, nse stock market live news, nse bse india stock market liveVolatility surged over 4% to sit at 20.8 levels. Midcap and Smallcap indices continued to surge, beating the benchmarks.

Share Market News Today | Sensex, Nifty, Share Prices Highlights: Sensex and Nifty traded with losses the entire day on Thursday as bears took control of the Street, halting the upmove of indices. S&P BSE Sensex ended lower by 394 points or 1.02% while the Nifty 50 ended lower at 11,312. Only 5 stocks ended with gains on BSE Sensex. NHPC was the top gainer, surging over 6.8%, followed by ONGC, Powergrid, and Tata Steel. HCL Technologies ended flat. HDFC was the top drag, down 2.3%, followed by Axis Bank and Bharti Airtel. Volatility surged over 4% to sit at 20.8 levels. Midcap and Smallcap indices continued to surge, beating the benchmarks. 

The Federal Open Market Committee of the US Fed, expressed concern about the economy of the United States of America, minutes of their last meeting show. Members of the committee were seen casting a shadow of doubt when it came to the impact of the coronavirus pandemic on the US economy. The meeting, held in the last week of July, is when the Federal Reserve decided to keep the rates unchanged. The FOMC members stressed on the need for another stimulus package by the US government.

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Highlights

    16:18 (IST)20 Aug 2020
    Sensex Nifty tank on weaker global cues; financials drags while power stocks surge

    Sensex and Nifty put the brakes on the winning run to tank nearly 400 points on Thursday, following weaker global cues. S&P BSE Sensex ended lower by 394 points or 1.02% while the Nifty 50 ended lower at 11,312. Only 5 stocks ended with gains on BSE Sensex. Domestic equity benchmarks under-performed broader markets as they continued to trade with losses for the entire day and ended close to the day’s low. Volatility was gained over 4% on Thursday after slipping steadily for 3 consecutive days. Global stocks markets slipped as the US Fed’s commentary showed that it was casting doubt over a swift economic recovery. 

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    15:57 (IST)20 Aug 2020
    Power stocks surge as government looks to improve liquidity; NTPC, Tata Power, NHPC shares gain

    A day after the Cabinet Committee on Economic Affairs (CCEA) approved the proposal of one-time restructuring of loans to discoms under Ujwal DISCOM Assurance Yojana (UDAY) schemes, power sector stocks were seen surging higher even amidst a bearish market sentiment. NTPC was the top Sensex gainers, surging over 6% to trade at Rs 101 per share, while Tata Power stocks gained 7.8%, and NHPC shares jumped over 12% on Thursday. Currently power distribution companies are allowed to borrow only up to 25% of their previous year’s working capital under the UDAY scheme, the Cabinet approved the limit to exceed 25%.

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    14:59 (IST)20 Aug 2020
    InterGlobe Aviation

    INDIGO in its annual report highlighted that, average daily flights in China had recovered by 47% YoY as of May’20, based on recent data published by the Civil Aviation Administration of China (CAAC). Recovery was higher for domestic flights at 53% YoY in May’20.

    INDIGO is undertaking various pre-emptive measures to focus and strengthen each of its business verticals to emerge stronger from the current crisis. However, due to the current uncertainties in the industry, we await further developments and clarity on the company achieving its targets. We remain Neutral on the stock. Our estimates are highly sensitive to (a) ticket yield, (b) PLF and (c) crude price assumption; material change to any of these will impact our estimates. ~ Motilal Oswal

    14:18 (IST)20 Aug 2020
    Morgan Stanley’s top midcap, smallcap stock picks; small stocks back in focus, beat Sensex, Nifty

    Over the last one month, when the benchmark indices S&P BSE Sensex and NSE Nifty 50 managed to gain only 2%, midcap and smallcap peers have outperformed the headline indices significantly. The S&P BSE Midcap index has gained 8.64% in the last one month, while S&P BSE Smallcap has surged 11.52%. On the Nifty, the Midcap 50 has managed to gain 9.5% and the Nifty Smallcap 50 has surged over 17%. With the midcap and smallcap stocks gaining momentum, global brokerage and research firm Morgan Stanley has turned bullish on the SMID (small and mid-cap) stocks, claiming that after 30 months of struggle these could be back to outperform.

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    13:50 (IST)20 Aug 2020
    TATA POWER: Planning for an asset-light and consumer-facing model

    Divestment-related measures (part receipt from International Shipping business, Arutmin, and Tata SED) and the infusion of INR26b from promoters would continue to aid debt reduction. As we build-in the expectations of normalization in its EPC business and some WC by FY22, we see the risk-reward as favorable. 1) the approval of a tariff hike at Mundra, 2) the merger of CGPL & Tata Power Solar with TPWR, and 3) favorable InvIT valuations would provide upsides to our estimates. Maintain Buy, with TP of INR66/sh.~ Motilal Oswal 

    12:43 (IST)20 Aug 2020
    Sugar stocks zoom up to 15% as govt hikes FRP; Renuka Sugars, Dalmia Bharat Sugar and Industries gain

    Sugar companies stocks zoomed up to 15 per cent on BSE after the government decided to raise the Fair & Remunerative Price (FRP) of sugarcane by Rs 10 per quintal to Rs 285 per quintal for the 2020-21 marketing year starting October 1. KM Sugar Mills share price soared up to 15 per cent to Rs 13.90 apiece, while Indian Sucrose shares jumped over 11 per cent and Kesar Enterprises rose 6.5 per cent in trade today. In comparison, S&P BSE Sensex was trading 278 points or 0.72 per cent down at 38,336.

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    12:38 (IST)20 Aug 2020
    Market undergoing V-shaped recovery, be stock specific ~ ICICI Securities

    Indian markets have been buoyant tracking healthy FII inflows in August 2020 (~US$3.5 bn MTD), pace of economic recovery post the pandemic, progress made by the medical fraternity on development of Covid-19 vaccine. The present market has almost charted a V-shaped recovery since March lows with its move in last two months surprising us positively given our neutral stance on market in the last report. Key economic indicators depict encouraging pace of economic recovery viz. domestic power demand (nearly flat YoY), e-way bill generation (~90% of pre-Covid level), FASTag toll collections at key national highways (~80% of pre-Covid level). However, we are still some distance away from near economic normalcy with auto retail down ~30-35% YoY and decline in diesel consumption by ~20% (YoY & MoM) for first fortnight of August 2020. Currently, we believe the index captures a large part of economic recovery optimism & would recommend being more stock specific, which illustrates quality of earnings, sustainability of growth prospects and possesses fundamental moat. We remain positive on rural economy and resilient sectors like IT, pharma and private banks.

    12:29 (IST)20 Aug 2020
    Midcaps, smallcaps gains

    Nifty Midcap 50 was up 1.15%. Nifty Smallcap 100 gained 1%, and Nifty Smallcap 50 jumped 1.22% on Thursday even though Nifty 50 was down deep in the red.

    12:17 (IST)20 Aug 2020
    FII ownership in Nifty-500 remains near 5-year lows

    FII holdings in the Nifty-500 remained near 5-year lows in 1QFY21 – it marginally increased by 8bp QoQ, but declined 130bp YoY to 20.8%. DII holdings were also marginally up in the Nifty-500 by 7bp QoQ/90bp YoY to 14.7%. FIIs have reduced ownership in 68%/74% of Nifty-500/Nifty-50 companies QoQ, while DIIs increased stake in 50%/68% of Nifty-500/Nifty-50 companies QoQ.

    11:41 (IST)20 Aug 2020
    ICICI Bank share: Buy or Sell? Stock tanks 2% today; banking risks remain but ICICI better than peers

    Private sector lender ICICI Bank’s shares slipped over 2%, making it one of the worst performing stocks on Thursday morning. Although the risks aligned with the banking sector in India remain, analysts believe ICICI Bank is better placed than peers to tackle any headwinds in the near future. ICICI Bank shares were down 2.36% to trade at Rs 365 per share. The lender has recently raised Rs 15,000 crore via Qualified Institutional Placement (QIP), which saw marquee investors like Monetary Authority of Singapore, Morgan Stanley Investment Management, and Societe Generale invest in ICICI Bank.

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    11:19 (IST)20 Aug 2020
    KNR Constructions - Pandemic impact managed well ~ Edelweiss Securities

    KNR Constructions (KNR) reported a 3% YoY increase in Q1FY21 top line to INR4.8bn despite the pandemic playing spoilsport. Adjusted PAT declined 17% YoY due to higher interest expenses (up 13% YoY) as well as tax rate. Debt inched up QoQ due to delayed payments by the Telangana government; the relief is expected shortly though. Revenue visibility remains healthy with the book-to-bill at 3.5x. In light of the easing labour situation, KNR expects to reach ~80% operating efficiency by end-Q2FY21. Better-than-expected execution drives the uptick in our target multiple from 12 to 15. Retain ‘BUY’ with an SoTP‐based revised TP of INR316 (INR258 earlier) as we roll over the valuation to December 2021E

    ~ Edelweiss Securities

    11:13 (IST)20 Aug 2020
    Muthoot Finance share price slips over 5% post Apr-Jun quarter earnings; should you buy?

    Muthoot Finance share price slumped 5.6 per cent to Rs 1,185.40 apiece on BSE, a day after the company reported a mixed set of numbers for the April-June quarter. The company reported a 52 per cent increase in its first quarter consolidated net profit at Rs 858 crore as compared to Rs 563 crore in the corresponding quarter of the preceding fiscal.

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    10:41 (IST)20 Aug 2020
    Gold prices fall over Rs 1,300 per 10 gram in two days in India even as international prices rise

    Gold prices continued to falter for the second straight day on Thursday after the minutes of the US Federal Reserves policy’s last meeting showed that the policymakers expressed little support to cap bond yields. Gold prices have been trading volatile in domestic markets after hitting a new all-time high of Rs 56,191 per 10 gram on August 7.

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    10:39 (IST)20 Aug 2020
    NTPC shares surge close to 5%

    Share price of public sector entity NTPC surged 4.5% on Thursday morning, even though equity markets were in the firm control of the bears. The stock was trading at Rs 98.90 per share.

    09:59 (IST)20 Aug 2020
    Sensex, Nifty trade with losses; Midcap, Smallcap indices continue to surge while benchmarks bleed

    Sensex and Nifty started Thursday’s trading session down in the negative territory, following weaker global cues that saw Asian peers trade with losses. SGX Nifty too hinted at a gap-down opening. S&P BSE Sensex S&P BSE Sensex tanked over 336 points on opening while the Nifty 50 gave up the 11,300 mark. Later on, after the initial 30 minutes of trade, equity benchmarks still traded with losses but recouped some losses. Only five of the 30 Sensex constituents were trading with gains. Broader markets continued to out-perform benchmarks.

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    09:21 (IST)20 Aug 2020
    Sensex and Nifty open deep in the red

    S&P BSE Sensex opened down by 336 points while the Nifty 50 index gave up the 11,300 mark. ICICI Bank and HDFC Bank were the top index contributors, pulling markets lower. 

    09:08 (IST)20 Aug 2020
    Stocks in focus: Yes Bank, CSB Bank, Muthoot Finance, Dr Reddy’s Lab, Indian Overseas Bank

    A total of 58 companies including HealthCare Global Enterprises, MOIL, Indian Overseas Bank, J Kumar Infraprojects, IRB InvIT Fund, Madhucon Projects, McDowell Holdings, Metalyst Forgings, and Valecha Engineering, etc will announce their quarterly earnings later in the day today.

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    09:03 (IST)20 Aug 2020
    Sensex tanks over 200 points in the pre-open session

    S&P BSE Sensex tanked over 200 points in the pre-opening session on Thursday following weaker global cues that suggest a gap-down opening for domestic equity markets. 

    08:57 (IST)20 Aug 2020
    Results today

    MOI, Indian Overseas Bank will post their quarterly results today. Along with these Sheela Foam and Bliss GVS Pharma will also announce their quarterly performance. 

    08:42 (IST)20 Aug 2020
    A look back at yesterday's trading session

    "The Nifty paused ahead of the current week’s index contract. We might even call it consolidation to cross the 11500 levels. The main base is around 11380 and 11350. Buy Nifty between 11380 and 11360 and for that keep a final stop loss at 11300. Tomorrow could be a big day for Bank Nifty. Traders should buy "Out of Money Call" Options if it exceeds the 22500 levels. Our markets mirrored the global markets trend and the dollar traded at a two-year low. Asian markets, particularly the Shanghai Composite Index, closed lower after President Donald Trump closed trade talks with China last weekend," said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.

    08:40 (IST)20 Aug 2020
    Markets rally back to pre-coronavirus levels; charts show upside potential for these two stocks

    After correcting from a high of 11374 last week, the Nifty found support at the 11,111 levels which also roughly coincided with the 20-day SMA. The Nifty then rallied in the early part of this week from the low of 11,111 to convincingly breakout of the 11374 levels. Given the momentum with which the markets have broken out of the highs of 11374, there is a good possibility that the Nifty could now be headed towards the next major intermediate highs of 11536-11614.Read full story

    08:31 (IST)20 Aug 2020
    Apple took just 2 years to add a trillion dollar to its market cap, but the next one won’t come easy

    Apple Inc. has done it again. On Wednesday, just two years after becoming the first U.S. company to boast a trillion-dollar market valuation, it became the first to top $2 trillion. Getting to the next trillion may not be such a breeze. With its shares up roughly 60% this year, Apple is among the Big Tech winners that have benefited from a “safety premium.” Investors have piled in to the iPhone maker’s shares as well as those of other technology darlings — including Amazon.com Inc., Facebook Inc. and Google parent Alphabet Inc. —  betting their business models, robust balance sheets and large cash balances would make them more resilient amid the economic fallout from the global Covid-19 pandemic.

    08:30 (IST)20 Aug 2020
    US Federal reserve concerned about medium-term economic impact

    Several participants of the US Fed's FOMC noted the potential longer-run effects of the pandemic associated with possible restructuring in some sectors of the economy that could slow the growth of the economy's productive capacity for some time.

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