The Indian equity markets bounced back into the green in Tuesday's volatile trade. Volatility index, India VIX, jumped 13 per cent to over 80 levels.
Among frontline indices, the S&P BSE Sensex was up 675 points, or 2.6 per cent, at 26,650 levels. Earlier, the index had surged to as much as 27,463 levels before paring all gains and slipping into the red. The Nifty index hovered around 7,790 levels, up 180 points, or 2.4 per cent. IndusInd Bank recovered around 30 per cent from the session low. IT stocks rallied with Infosys gaining over 7 per cent. Tech Mahindra and HCL Tech were also up over 4 per cent each.
In the broader market, the S&P BSE MidCap index was up 118 points, or 1.22 per cent, while the S&P BSE SmallCap was down 92 points, or 1 per cent.
Global markets rebound
Japan's share benchmark Nikkei climbed nearly 7 per cent to its highest level in 1-1/2 weeks on Tuesday, outperforming regional peers, supported by hopes of buying by the Bank of Japan (BOJ) and public pension funds.
The Nikkei average gained 6.7 per cent to 18,026.73, its highest since March 13, by the midday break. If sustained until the close, it would be the biggest daily rise for the Nikkei since November 2016.
U.S S&P 500 stock futures last traded 3.5 per cent higher and MSCI's broadest index of Asia-Pacific shares outside Japan advanced 4.3 per cent as the Federal Reserve's promise of bottomless dollar funding eased strains in financial markets.
In addition to the Fed's unlimited QE, hopes of stock buying by the BOJ, public pension funds and buyback by listed companies supported the Tokyo market, analysts said.
(With Reuters inputs)
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12:49 PM
ALERT :: FM assures of a stimulus package to combat Covid-19
Nirmala Sitharaman
✔
@nsitharaman
Even as we are readying an economic package to help us through the Corona lockdown (on priority, to be announced soon) I will address the media at 2pm today, specifically on statutory and regulatory compliance matters. Via video conference. @FinMinIndia @PIB_India @ANI @PTI_News
3,234
12:33 PM - Mar 24, 2020
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12:46 PM
Sector watch :: ICRA downgrades hospitality sector from stable to negative outlook
>> Occupancies across hotels in India have crashed during March 2020, by over 40% in many cases. Cancellations are at all-time highs. Risk aversion to travel and unfamiliar surroundings is at a high. Group events felt the first impact of Covid-19, with mass cancellations impacting banqueting and allied income for hotels starting in February 2020, even before the impact of the contagion was visible in India and the Indian government sprang into action.
>> ICRA expects the travel and tourism industry to witness one of the longest tail periods of impact, potentially running into multiple quarters, following the covid-19 wave
12:44 PM
MARKET UPDATE:: Sensex extends gains after FM's tweet
12:43 PM
BROKERAGE RADAR | Emkay Global Financial Services on Engineering & Capital Goods
We compare and draw parallels between the 2008-10 financial crisis-led economic slowdown and the current Covid-19 situation in terms of capex push, and check the government’s ability to fund the infrastructure capex. We find that after the Global Financial Crisis (GFC) in 2008, the impact on our coverage companies in the ECG space was limited mostly to export revenue for 4-6 quarters. Domestic revenue did not see a major slowdown, except for the private sector capex-dependent players such as ABB, Siemens and Thermax. We maintain that the reduced infra capex will hurt larger and diversified players more than the smaller and niche players. We have a Hold rating on L&T and Buy on Cummins India, KNR Constructions and PNC Infratech.
12:40 PM
Top BSE500 gainers
COMPANY LATEST PREV CLOSE GAIN(%)
FINE ORGANIC 1801.60 1564.25 15.17
ESCORTS 633.95 551.30 14.99
HDFC LIFE INSUR. 389.20 342.55 13.62
AUROBINDO PHARMA 332.65 294.35 13.01
BRITANNIA INDS. 2410.00 2133.35 12.97Click here for the full list
12:37 PM
NEWS ALERT | FM Sitharaman to address the media at 2 pm today
-- Sitharaman to address media specifically on statutory and regulatory compliance matters
Nirmala Sitharaman
✔
@nsitharaman
Even as we are readying an economic package to help us through the Corona lockdown (on priority, to be announced soon) I will address the media at 2pm today, specifically on statutory and regulatory compliance matters. Via video conference. @FinMinIndia @PIB_India @ANI @PTI_News
3,234
12:33 PM - Mar 24, 2020
Twitter Ads info and privacy
1,213 people are talking about this
12:34 PM
Coronavirus outbreak: Stock exchanges activate disaster recovery sites
The move is in line with the Securities and Exchange Board of India’s (Sebi’s) guidelines on business continuity plan (BCP) and disaster recovery (DR) for market infrastructure institutions (MIIs), which includes stock exchanges, clearing corporations and depositories. The objective is to ensure exchange’s preparedness in the event of a natural calamity, so that any disruptions should not affect market integrity and investor confidence. READ MORE
12:26 PM
No trading seen in bonds in first 20 minutes of the market session
India’s bond market saw no trading in the first 20 minutes on Tuesday, and the total trading volume as of 11:30 am was just Rs 250 crore, as bond traders worked from home amid expectations of an imminent rate cut. The market now expects rate cuts of at least 50 basis points, and industry associations have called for a cut of as much as 150 basis points, as the number of coronavirus cases are rising in India and globally, bringing economic activities to a halt. READ MORE
stock, market, shares, investment, investors, trading, sensex, growth, technology
12:26 PM
BROKERAGE RADAR | ICICI Securities on HUL
The acquisition of Vwash would not make any material difference to growth. However, it has strong potential to grow into a bigger brand in the next five to 10 years. With respect to the recent outbreak of Covid-19, the personal wash category is likely to see strong growth in the next few quarters. Though the personal wash category is fully penetrated, it is expected to witness unprecedented increase in per capita consumption after increasing awareness on personal hygiene. Despite the extraordinary economic slowdown, HUL is likely to sustain robust revenue growth and strong operating margins. The company would continue to command a premium to the peers being the leader in the category. We change our recommendation from HOLD to BUY with a target price of Rs 2,310/share.
12:24 PM
BROKERAGE RADAR | Kotak Securities on Media sector
We expect a complete/partial lockdown of cinemas for a couple of months in view of Covid-19 outbreak. During this period, PVR would incur cash loss of about Rs550-600 mn per month. The company has adequate liquidity to navigate a complete lockdown of about five months and would be able to borrow more, if need be. We expect a strong bounce back in demand post Covid-19 led by (1) pent-up demand, and (2) packed line-up of movies (4QFY20/1QFY21 releases deferred would be scheduled over 2Q-4QFY21) and (3) we believe that PVR’s performance is largely linked to content quality and likely weakness in macro aftermath Covid-19 would have modest impact on PVR’s operating performance.
We recommend buying PVR on dips. We have a BUY rating with a fair value of Rs 1,800, implies 11X FY2022E EV/EBITDA.
Among frontline indices, the S&P BSE Sensex was up 675 points, or 2.6 per cent, at 26,650 levels. Earlier, the index had surged to as much as 27,463 levels before paring all gains and slipping into the red. The Nifty index hovered around 7,790 levels, up 180 points, or 2.4 per cent. IndusInd Bank recovered around 30 per cent from the session low. IT stocks rallied with Infosys gaining over 7 per cent. Tech Mahindra and HCL Tech were also up over 4 per cent each.
In the broader market, the S&P BSE MidCap index was up 118 points, or 1.22 per cent, while the S&P BSE SmallCap was down 92 points, or 1 per cent.
Global markets rebound
Japan's share benchmark Nikkei climbed nearly 7 per cent to its highest level in 1-1/2 weeks on Tuesday, outperforming regional peers, supported by hopes of buying by the Bank of Japan (BOJ) and public pension funds.
The Nikkei average gained 6.7 per cent to 18,026.73, its highest since March 13, by the midday break. If sustained until the close, it would be the biggest daily rise for the Nikkei since November 2016.
U.S S&P 500 stock futures last traded 3.5 per cent higher and MSCI's broadest index of Asia-Pacific shares outside Japan advanced 4.3 per cent as the Federal Reserve's promise of bottomless dollar funding eased strains in financial markets.
In addition to the Fed's unlimited QE, hopes of stock buying by the BOJ, public pension funds and buyback by listed companies supported the Tokyo market, analysts said.
(With Reuters inputs)
CATCH ALL THE LIVE UPDATES
Auto Refresh
12:49 PM
ALERT :: FM assures of a stimulus package to combat Covid-19
Nirmala Sitharaman
✔
@nsitharaman
Even as we are readying an economic package to help us through the Corona lockdown (on priority, to be announced soon) I will address the media at 2pm today, specifically on statutory and regulatory compliance matters. Via video conference. @FinMinIndia @PIB_India @ANI @PTI_News
3,234
12:33 PM - Mar 24, 2020
Twitter Ads info and privacy
1,213 people are talking about this
12:46 PM
Sector watch :: ICRA downgrades hospitality sector from stable to negative outlook
>> Occupancies across hotels in India have crashed during March 2020, by over 40% in many cases. Cancellations are at all-time highs. Risk aversion to travel and unfamiliar surroundings is at a high. Group events felt the first impact of Covid-19, with mass cancellations impacting banqueting and allied income for hotels starting in February 2020, even before the impact of the contagion was visible in India and the Indian government sprang into action.
>> ICRA expects the travel and tourism industry to witness one of the longest tail periods of impact, potentially running into multiple quarters, following the covid-19 wave
12:44 PM
MARKET UPDATE:: Sensex extends gains after FM's tweet
12:43 PM
BROKERAGE RADAR | Emkay Global Financial Services on Engineering & Capital Goods
We compare and draw parallels between the 2008-10 financial crisis-led economic slowdown and the current Covid-19 situation in terms of capex push, and check the government’s ability to fund the infrastructure capex. We find that after the Global Financial Crisis (GFC) in 2008, the impact on our coverage companies in the ECG space was limited mostly to export revenue for 4-6 quarters. Domestic revenue did not see a major slowdown, except for the private sector capex-dependent players such as ABB, Siemens and Thermax. We maintain that the reduced infra capex will hurt larger and diversified players more than the smaller and niche players. We have a Hold rating on L&T and Buy on Cummins India, KNR Constructions and PNC Infratech.
12:40 PM
Top BSE500 gainers
COMPANY LATEST PREV CLOSE GAIN(%)
FINE ORGANIC 1801.60 1564.25 15.17
ESCORTS 633.95 551.30 14.99
HDFC LIFE INSUR. 389.20 342.55 13.62
AUROBINDO PHARMA 332.65 294.35 13.01
BRITANNIA INDS. 2410.00 2133.35 12.97Click here for the full list
12:37 PM
NEWS ALERT | FM Sitharaman to address the media at 2 pm today
-- Sitharaman to address media specifically on statutory and regulatory compliance matters
Nirmala Sitharaman
✔
@nsitharaman
Even as we are readying an economic package to help us through the Corona lockdown (on priority, to be announced soon) I will address the media at 2pm today, specifically on statutory and regulatory compliance matters. Via video conference. @FinMinIndia @PIB_India @ANI @PTI_News
3,234
12:33 PM - Mar 24, 2020
Twitter Ads info and privacy
1,213 people are talking about this
12:34 PM
Coronavirus outbreak: Stock exchanges activate disaster recovery sites
The move is in line with the Securities and Exchange Board of India’s (Sebi’s) guidelines on business continuity plan (BCP) and disaster recovery (DR) for market infrastructure institutions (MIIs), which includes stock exchanges, clearing corporations and depositories. The objective is to ensure exchange’s preparedness in the event of a natural calamity, so that any disruptions should not affect market integrity and investor confidence. READ MORE
12:26 PM
No trading seen in bonds in first 20 minutes of the market session
India’s bond market saw no trading in the first 20 minutes on Tuesday, and the total trading volume as of 11:30 am was just Rs 250 crore, as bond traders worked from home amid expectations of an imminent rate cut. The market now expects rate cuts of at least 50 basis points, and industry associations have called for a cut of as much as 150 basis points, as the number of coronavirus cases are rising in India and globally, bringing economic activities to a halt. READ MORE
stock, market, shares, investment, investors, trading, sensex, growth, technology
12:26 PM
BROKERAGE RADAR | ICICI Securities on HUL
The acquisition of Vwash would not make any material difference to growth. However, it has strong potential to grow into a bigger brand in the next five to 10 years. With respect to the recent outbreak of Covid-19, the personal wash category is likely to see strong growth in the next few quarters. Though the personal wash category is fully penetrated, it is expected to witness unprecedented increase in per capita consumption after increasing awareness on personal hygiene. Despite the extraordinary economic slowdown, HUL is likely to sustain robust revenue growth and strong operating margins. The company would continue to command a premium to the peers being the leader in the category. We change our recommendation from HOLD to BUY with a target price of Rs 2,310/share.
12:24 PM
BROKERAGE RADAR | Kotak Securities on Media sector
We expect a complete/partial lockdown of cinemas for a couple of months in view of Covid-19 outbreak. During this period, PVR would incur cash loss of about Rs550-600 mn per month. The company has adequate liquidity to navigate a complete lockdown of about five months and would be able to borrow more, if need be. We expect a strong bounce back in demand post Covid-19 led by (1) pent-up demand, and (2) packed line-up of movies (4QFY20/1QFY21 releases deferred would be scheduled over 2Q-4QFY21) and (3) we believe that PVR’s performance is largely linked to content quality and likely weakness in macro aftermath Covid-19 would have modest impact on PVR’s operating performance.
We recommend buying PVR on dips. We have a BUY rating with a fair value of Rs 1,800, implies 11X FY2022E EV/EBITDA.
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