MARKET LIVE: Sensex gains 700 pts, Nifty tests 8,500; metals rally

The Indian equity markets were trading higher on Tuesday, tracking positive cues in the global markets and a sizable improvement in Chinese manufaturing data for March, although the increasing tally of coronavirus cases capped the gains
China’s official purchasing manufacturers’ index bounced to 52, from a record-low 35.7 in February while services PMI stood at 52.3 versus the previous 29.6 as factories began to re-open.
Among headline indices, the S&P BSE Sensex gained 710 points, or 2.5 per cent, to 29,150 levels. The Nifty50 index was up 210 points, or 2.6 per cent, at 8,495 levels. Metal stocks were the top contributors to the indices' gain today. The Nifty Metal index was up 3.5 per cent. Among individual stocks, Tata Steel was up 4 per cent while HDFC and Reliance Industries were up 2 per cent each. On the other hand, IndusInd Bank slipped another 20 per cent.
In the broader market, the S&P BSE MidCap and the S&P BSE SmallCap indexes were up over 1 per cent each.
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11:30 AM
Why are the markets punishing Bajaj Finance, Bajaj Finserv?
“Bajaj Finance is a company that is involved in consumer financing... With the 21-day lockdown, consumption has slowed down considerably, and discretionary buying is out of sight. In my view, the strong growth that the company was clocking over the past few years is not coming back for at least six months now,” says A.K Prabhakar, head of research at IDBI Capital. READ MORE

11:25 AM
MARKET CHECK | Top 5 gainers on the BSE at this hour
11:15 AM
MARKET CHECK | ONGC jumps around 5%
11:02 AM
Covid-19: Recession for world economy; India, China likely exceptions: UN
The world economy will go into recession this year with a predicted loss of trillions of dollars of global income due to the coronavirus pandemic, spelling serious trouble for developing countries with the likely exception of India and China, according to a latest UN trade report. With two-thirds of the world's population living in developing countries facing unprecedented economic damage from the COVID-19 crisis, the UN is calling for a $2.5 trillion rescue package for these nations. READ MORE
Economy
10:51 AM
IT stocks trade higher
COMPANY LATEST(RS) CHG(%)
INFOSYS 658.85 5.05
WIPRO 192.50 4.56
TCS 1823.50 2.67
HEXAWARE TECH. 229.85 10.03
TECH MAHINDRA 536.10 1.44
» More
10:42 AM
It is a great time to invest in stocks: Sampath Reddy, Bajaj Allianz Life
It is possible that markets may fall another 10 per cent, even 20 per cent. At the same time, it is equally possible that the correction is over and we have reached the bottom. But whatever be the situation, it is a very good opportunity to invest in equities. I am sure that three months, six months or one year down the line, markets will be far higher than the current levels. READ MORE
Sampath Reddy, CIO, Sampath Reddy, CIO, Bajaj Allianz Life Insurance
Sampath Reddy, CIO, Bajaj Allianz
10:40 AM
Top gainers on BSE
COMPANY PRICE(RS) CHG(%)
PC JEWELLER 11.55 10.00
MAHINDRA LOGIS. 227.80 10.00
KRBL 136.30 9.96
GATEWAY DISTR. 96.15 9.95
VRL LOGISTICS 154.00 9.45
» More on Top Gainers
10:34 AM
BROKERAGE VIEW:: ICICI Securities on IndusInd Bank
We attended the conference call hosted by IndusInd Bank (IIB) wherein the management indicated slowdown in loan growth, comfortable liquidity position despite deposit outflows and possibility of deterioration in asset quality. We believe the impact on asset quality may be for a short term and that it will be important to track borrower behaviour after completion of moratorium period. Working capital loans and unsecured loans like PL and credit card are at higher risk of default. Despite some concerns on stressed telecom account, higher vehicle book and uncertainty around COVID-19, we believe IndusInd Bank is a good value proposition given it is trading at 0.9x P/ABV FY21E.
Retain BUY with a target price of Rs1,268 (earlier: Rs1,796)
10:31 AM
BROKERAGE VIEW:: ICICI Securities on Dr Lal Pathlabs
The company has initiated conducting COVID-19 test at its national lab in Delhi at a price of Rs4,500. Due to lock-down across the country, the company is witnessing slowdown in both the B2B and B2C businesses since past few days. The supply chain is also disrupted but it is expected to improve in the near term. There doesn’t seem to be a structural impact in the business and expect speedy recover in volumes post normalisation. The management has started working on cost rationalisation to mitigate the impact to a certain extent. The company has been able to consistently report strong growth with incremental free cashflows in normal course of business.
Maintain BUY with a DCF-based target price of Rs1,724/share implying 40.0xFY22E EPS and 26.6xFY22E EV/EBITDA.
Key downside risks: Higher-thanexpected competition, pricing pressures and prolonged COVID-19.
10:23 AM
BUZZING STOCK:: Amara Raja Batteries up 6%