Indian markets declined over 1 per cent on Friday, pulled down by auto and bank stocks, amid mixed global cues.
The S&P BSE Sensex gave up 31,000 after sliding 320 points and the Nifty50 index was near 9,060 levels, down 83 points. Mahindra & Mahindra (down 4%) and Axis Bank (down 3%) were the top Sensex losers while ONGC gained 2 per cent. Biocon dipped 4 per cent after its Q4 net profit declined 42.2 per cent to Rs 123 crore on y-o-y basis.
Trend among Nifty sectoral indices was largely negative, led by Nifty Bank index, down 1.8 per cent. On the other hand, Nifty Metal index gained over 1 per cent.
The losses were more contained in the broader market as both the MidCap as well as the SmallCap index were trading 0.3 per cent lower.
RESULTS TODAY
Today, a total of 12 companies including Cipla, Aaarti Drugs, and M&M Finance are scheduled to announce their results
CATCH ALL THE LIVE UPDATES
Auto Refresh
11:13 AM
BUZZING STOCK | Ajanta Pharma hits 52-week high in today's trade
11:06 AM
PVR, Inox Leisure hit 52-wk lows on report of lockdown extension in Mumbai
As multiplexes were the first to be shut and could be the last to be opened, the market value of these stocks have more than halved from their peak. Inox Leisure and PVR have tanked 62 per cent and 60 per cent, respectively from their respective 52-week high values (touched in February 2020) on concerns of the impact of the Covid outbreak on the firms' revenues and cash accruals on account of closures of cinemas. READ MORE
10:56 AM
BROKERAGE VIEW:: Edelweiss Securities on IndiaMart InterMESH
IndiaMART InterMESH (IndiaMART) reported Q4FY20 results significantly ahead of expectations despite the lockdown impact. That said, management painted a gloomy outlook for MSMEs, which would translate to 10–20% business mortality of its paying customers. The company’s focus is now on customer retention via discounts and relaxed payment terms. It has undertaken cost-cutting measures such as salary rationalisation, cutbacks in discretionary spends, etc to absorb the impact on profit. All in all, we are slashing revenue/PAT by 22%/22% for FY21E and 36%/29% for FY22E. We are building in a 13% fall in revenue run-rate over the next two quarters and a slow recovery thereafter. That said, we anticipate a stronger recovery should the government package suitably address MSME challenges. Besides, we believe this lockdown would accelerate digital adoption, implying higher growth potential over the medium-to-long term. Maintain ‘BUY’ with a revised TP of Rs 2,535 (Rs 2,815 earlier) as we roll over the valuation to Q4FY22.
10:55 AM
BROKERAGE VIEW:: Edelweiss Securities on ABB India
In line with its closest peer Siemens, ABB too struggled with revenues, down 20% YoY, and gave cautious commentary for Q2CY20. Negative operating leverage and forex loss led to a mere 1% EBITDA margin. The silver lining is 10% YoY growth in new orders (Rs19.5bn) driven by motion (+30% YoY, railways) and industrial automation (+10% YoY, wind-led), despite a 45% YoY plunge in robotics (auto-led). Key takeaways from management commentary: i) Enhanced focus on 3Cs—customer/services, cost optimization and cash flows—to adapt to the new normal. ii) Market consolidation, infra boost and higher localisation are the key opportunities. We retain ‘HOLD’ with revised CY20/CY21E earnings (cut by 23/14%) and TP of Rs 900 as we roll forward the valuation to March 2022 (40x PE versus 42x earlier). We continue to prefer SIEM over ABB given the latter’s better scalability and growth potential over two–three years and wider industry coverage.
10:53 AM
BROKERAGE VIEW:: Prabhudas Lilladher on Manappuram Finance
Rating: ACCUMULATE | CMP: Rs 123 | TP: Rs 142
With COVID uncertainty looming large & Mngt citing caution, non-gold segments are expected to witness stress on growth & asset quality. Against this backdrop, we prune down EPS estimates by 13-14% over FY21-22E. While non-gold mix face challenging business cycles, gold business traction stands supported by gold price uptick. We, therefore, reiterate Accumulate rating, but tweak our PBV multiple to 1.7x (earlier 1.5x) arriving at price target of Rs 142 (earlier Rs 130) FY22E.
10:42 AM
Central banks may be forced to sell gold; India at risk: Chris Wood
The potential for forced selling in gold, Wood believes, could come from central banks given the dramatic fiscal deterioration being suffered by many countries. India, he said, is at risk given its substantial gold holdings.
“Another potential seller is Saudi Arabia where fiscal pressures caused a draconian threefold increase in the value-added tax (VAT) rate to 15 per cent and the suspension of cost of living allowances,” Wood said. READ MORE
10:33 AM
Alembic Pharma hits new high, surges 45% in 4 weeks on strong Q4 results
On the National Stock Exchange (NSE), the pharma firm's stock gained 3 per cent and hit a high of Rs 874. In comparison, the S&P BSE Sensex and Nifty50 index were down 2.5 per cent in the past two trading days. The stock price more-than-doubled from its recent low of Rs 436, touched on March 23, 2020. READ MORE
10:26 AM
Manappuram Finance jumps 7% in a weak market on strong Q4 result
The company's total income grew 38.7 per cent to Rs 1618.15 crore during the quarter as against Rs 1166.51 crore during same quarter a year ago.
For the whole FY20, profit before tax grew by 37.8 per cent to Rs 2007.30 crore, as compared to Rs 1456.59 crore during FY19, total income for the fiscal year grew 30.8 per cent to Rs 5551.19 crore, as against Rs 4242.04 crore during the previous fiscal year. READ MORE
10:20 AM
Day 3 of stimulus announcement :: FM Nirmala Sitharaman to hold press conference at 4 pm
>> Media reports suggest focus could be on infra and fisheries sector
10:17 AM
Rupee Opening
Rupee opens higher at 75.48 per US dollar vs Thursday's close of 75.56/$
The S&P BSE Sensex gave up 31,000 after sliding 320 points and the Nifty50 index was near 9,060 levels, down 83 points. Mahindra & Mahindra (down 4%) and Axis Bank (down 3%) were the top Sensex losers while ONGC gained 2 per cent. Biocon dipped 4 per cent after its Q4 net profit declined 42.2 per cent to Rs 123 crore on y-o-y basis.
Trend among Nifty sectoral indices was largely negative, led by Nifty Bank index, down 1.8 per cent. On the other hand, Nifty Metal index gained over 1 per cent.
The losses were more contained in the broader market as both the MidCap as well as the SmallCap index were trading 0.3 per cent lower.
RESULTS TODAY
Today, a total of 12 companies including Cipla, Aaarti Drugs, and M&M Finance are scheduled to announce their results
CATCH ALL THE LIVE UPDATES
Auto Refresh
11:13 AM
BUZZING STOCK | Ajanta Pharma hits 52-week high in today's trade
11:06 AM
PVR, Inox Leisure hit 52-wk lows on report of lockdown extension in Mumbai
As multiplexes were the first to be shut and could be the last to be opened, the market value of these stocks have more than halved from their peak. Inox Leisure and PVR have tanked 62 per cent and 60 per cent, respectively from their respective 52-week high values (touched in February 2020) on concerns of the impact of the Covid outbreak on the firms' revenues and cash accruals on account of closures of cinemas. READ MORE
10:56 AM
BROKERAGE VIEW:: Edelweiss Securities on IndiaMart InterMESH
IndiaMART InterMESH (IndiaMART) reported Q4FY20 results significantly ahead of expectations despite the lockdown impact. That said, management painted a gloomy outlook for MSMEs, which would translate to 10–20% business mortality of its paying customers. The company’s focus is now on customer retention via discounts and relaxed payment terms. It has undertaken cost-cutting measures such as salary rationalisation, cutbacks in discretionary spends, etc to absorb the impact on profit. All in all, we are slashing revenue/PAT by 22%/22% for FY21E and 36%/29% for FY22E. We are building in a 13% fall in revenue run-rate over the next two quarters and a slow recovery thereafter. That said, we anticipate a stronger recovery should the government package suitably address MSME challenges. Besides, we believe this lockdown would accelerate digital adoption, implying higher growth potential over the medium-to-long term. Maintain ‘BUY’ with a revised TP of Rs 2,535 (Rs 2,815 earlier) as we roll over the valuation to Q4FY22.
10:55 AM
BROKERAGE VIEW:: Edelweiss Securities on ABB India
In line with its closest peer Siemens, ABB too struggled with revenues, down 20% YoY, and gave cautious commentary for Q2CY20. Negative operating leverage and forex loss led to a mere 1% EBITDA margin. The silver lining is 10% YoY growth in new orders (Rs19.5bn) driven by motion (+30% YoY, railways) and industrial automation (+10% YoY, wind-led), despite a 45% YoY plunge in robotics (auto-led). Key takeaways from management commentary: i) Enhanced focus on 3Cs—customer/services, cost optimization and cash flows—to adapt to the new normal. ii) Market consolidation, infra boost and higher localisation are the key opportunities. We retain ‘HOLD’ with revised CY20/CY21E earnings (cut by 23/14%) and TP of Rs 900 as we roll forward the valuation to March 2022 (40x PE versus 42x earlier). We continue to prefer SIEM over ABB given the latter’s better scalability and growth potential over two–three years and wider industry coverage.
10:53 AM
BROKERAGE VIEW:: Prabhudas Lilladher on Manappuram Finance
Rating: ACCUMULATE | CMP: Rs 123 | TP: Rs 142
With COVID uncertainty looming large & Mngt citing caution, non-gold segments are expected to witness stress on growth & asset quality. Against this backdrop, we prune down EPS estimates by 13-14% over FY21-22E. While non-gold mix face challenging business cycles, gold business traction stands supported by gold price uptick. We, therefore, reiterate Accumulate rating, but tweak our PBV multiple to 1.7x (earlier 1.5x) arriving at price target of Rs 142 (earlier Rs 130) FY22E.
10:42 AM
Central banks may be forced to sell gold; India at risk: Chris Wood
The potential for forced selling in gold, Wood believes, could come from central banks given the dramatic fiscal deterioration being suffered by many countries. India, he said, is at risk given its substantial gold holdings.
“Another potential seller is Saudi Arabia where fiscal pressures caused a draconian threefold increase in the value-added tax (VAT) rate to 15 per cent and the suspension of cost of living allowances,” Wood said. READ MORE
10:33 AM
Alembic Pharma hits new high, surges 45% in 4 weeks on strong Q4 results
On the National Stock Exchange (NSE), the pharma firm's stock gained 3 per cent and hit a high of Rs 874. In comparison, the S&P BSE Sensex and Nifty50 index were down 2.5 per cent in the past two trading days. The stock price more-than-doubled from its recent low of Rs 436, touched on March 23, 2020. READ MORE
10:26 AM
Manappuram Finance jumps 7% in a weak market on strong Q4 result
The company's total income grew 38.7 per cent to Rs 1618.15 crore during the quarter as against Rs 1166.51 crore during same quarter a year ago.
For the whole FY20, profit before tax grew by 37.8 per cent to Rs 2007.30 crore, as compared to Rs 1456.59 crore during FY19, total income for the fiscal year grew 30.8 per cent to Rs 5551.19 crore, as against Rs 4242.04 crore during the previous fiscal year. READ MORE
10:20 AM
Day 3 of stimulus announcement :: FM Nirmala Sitharaman to hold press conference at 4 pm
>> Media reports suggest focus could be on infra and fisheries sector
10:17 AM
Rupee Opening
Rupee opens higher at 75.48 per US dollar vs Thursday's close of 75.56/$
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