Sensex, Nifty End Lower For Second Day; Banks, FMCG Top Laggards

• Benchmark indices struggle to hold gains; end near day's low
• Nifty ends 0.95 percent lower at 9,205
• Sensex ends 0.8 percent lower at 31,453
• Nifty Bank ends 2.4 percent lower at 19,271
• Nifty Midcap Index ends 0.7 percent lower
• Nifty Smallcap Index end 1.3 percent lower
• India Volatility Index end 1 percent lower at 43.26
• Nifty PSU Banking index ends as top sectoral laggard; down 3.3 percent
• Nifty FMCG, Media, Metal end with losses of over 1 percent
• Nifty Pharma and Nifty Realty index fall between 2-3 percent
• Bharti Infratel ends as the top Nifty gainer; up 3.6 percent
• State Bank of India ends as the top Nifty laggard; down 4.2 percent
• 1,131 stocks on the NSE ended with losses while 628 ended with gains

After trading in a range for most parts of the trading day, Indian equity markets witnessed a sell-off in the final hour to end lower for the second straight day.

The S&P BSE Sensex fell over 850 points from its day's high of 32,264 to end at 31,453, down 0.8 percent.

The NSE Nifty 50 ended at 9,205, down over 250 points from the highest point of the day at 9,490. The index shed 0.95 percent in today's trading session. 35 out of the 50 index constituents ended with losses.

Banking stocks were the major laggards in today's trading session. The Nifty PSU Banking index was the top sectoral laggard, ending 3.1 percent lower due to losses in SBI while the Nifty Banking index too ended with cuts of 2.2 percent.

Among other sectoral indices, Nifty Pharma, Nifty FMCG and Nifty Realty fell between 2-3 percent.

The company has informed the exchanges that production has resumed across all manufacturing locations of the company and that corporate offices have resumed work only with 'critical staff.'

It has also informed of launching various new products across healthcare, home and personal care and food categories. These products range from Tulsi Juise to immunity kits, air sanitisers and hand sanitisers.

Shares fell as much as 3.9 percent to Rs 450.30 and are down for the second straight day.

The life insurance player saw a 5 percent rise in its gross premium in the fourth quarter to Rs 11,937 crore. This compares to the Rs 11,376 crore figure during the same period last year.

Net profit rose 16 percent year-on-year to Rs 531 crore while VNB Margins for FY20 expanded to 20.7 percent from 20 percent.

The 13th month persistency ratio for FY20 stood at 86.14 percent from 85.07 percent.

Shares gained as much as 6.84 percent to Rs 734.70 before cooling off.

• Sell Nifty futures at 9,260 - 9,280 for target of 9,085 and stop loss of 9,415
• Sell DLF futures at Rs 129 for target of Rs 121 and stop loss of Rs 132.65
• Sell Canara Bank futures at Rs 80.50 for target of Rs 74 and stop loss of Rs 83.35

• Nifty: Buy 9,300 Put of May 7 expiry around Rs 170 - 165 for target of Rs 230 and stop loss of Rs 135
• Sell Glenmark futures around Rs 328 for target of Rs 304 and stop loss of Rs 336
• Buy Marico around Rs 295 for target of Rs 310 and stop loss of Rs 291

• Worst performer on the Nifty Midcap index
• Falls as much as 8.1 percent to Rs 346.15
• Down for the second straight session
• Falls 14 percent in the last two session
• Today's volumes are double than its 30-day average
• Breaks below its 50-day Moving Average of Rs 378.83
• 13 out of the 18 analysts tracking the stock have a buy recommendation; 3 sell calls
• Return potential for the stock as per Bloomberg data is 47.3 percent

• Revenue seen 6 percent higher at Rs 3,265 crore
• Ebitda seen 2 percent lower at Rs 1,895 crore
• Ebitda Margin seen at 58.1 percent from 62.7 percent
• Net profit seen 31 percent lower at Rs 887 crore
• All estimates are consolidated and compared on a year-on-year basis
• Robust cargo offtake of 58 MMT in Q4
• Newer assets like Katupalli and Ennore aid cargo offtake
• Forex loss likely this quarter. The company had a forex gain of Rs 109 crore in the base quarter
• High other income may offset the forex loss impact
• Volume growth guidance for FY21, Clearance of Krishnapatnam port acquisition some key factors to watch

• Benchmark indices continue to fluctuate from day's high
• Nifty up 0.4 percent at 9,334
• Sensex up 0.4 percent at 31,850
• Nifty Bank down 0.3 percent at 19,692
• Nifty Midcap Index up 0.6 percent
• Nifty Smallcap Index gives up all of its gains to trade flat
• India Volatility Index down 3.4 percent to 42.18
• Nifty Metal Index holds on to gains; up 1.3 percent
• Nifty FMCG and Nifty Pharma Index fall close to 1 percent
• Nifty Realty remains top sectoral loser; down 1.7 percent
• Bharti Infratel remains top Nifty gainer; up 7.9 percent
• Asian Paints remains the top Nifty laggard; down 3.1 percent
• 837 stocks on the NSE trade with gains while 895 decline

The currency ended with modest gains today in a subdued trading session after seeing its biggest one-day drop in a month on Monday.

The rupee ended at 75.64 against the U.S. Dollar as compared to Monday's close of 75.72.

Yield on the 10-year bond ended at 6.074 percent as compared to today's opening level of 6.085 percent.

The Reserve Bank of India is set to auction a new 10-year paper this week as it will replace the existing benchmark bond in that tenor.

Bloomberg quoted experts as saying that the new 10-year bond is expected to come in at 5.75-5.80 percent.

• Electricity volumes on the index down 6.6 percent year-on-year as compared to the 25 percent decline in national peak demand
• Average power price down 25 percent to Rs 2.42 per unit
• Declines mainly due to contraction in commercial and industrial demand in wake of the Covid-19 lockdown
• Power procurement by discoms from Andhra, Telangana, Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh, Bihar and Punjab saw a 10 percent rise in April

Shares fell as much as 3.15 percent to Rs 140 and are down for the fourth straight day.

• Top loser on the Nifty 50 index
• Fell as much as 5.88 percent to Rs 1,578
• Down for the fifth straight day
• Longest losing streak since May 2019 during which it fell for nine successive trading sessions
• Down 13 percent in the last five trading sessions
• Trades below its 200-day Moving Average of Rs 1,706.86
• Today's volumes are 2.3 times higher than its 30-day average
• Trades at 49.4 times estimated forward Earnings Per Share as compared to 24.6 times for comparable companies
• 24 out of the 40 analysts tracking the stock have a buy recommendation; 3 sell calls
• Return potential of the stock as per Bloomberg data is 12.8 percent

17.3 lakh shares of the company have exchanged hands in a single large trade on the National Stock Exchange, as per Bloomberg data.

Buyers and sellers of the trade were not immediately known.

Shares are off the day's high but trade with gains of 0.8 percent at Rs 92.05.

• Gives up gains of as much as 2.7 percent
• Trades lower by 1.5 percent at Rs 890.4
• Down for the second straight day
• Today's volumes are 23 percent below the 20-day average
• Promoter Subroto Bagchi sold 1.34 lakh shares of the company
• 14 out of the 36 analysts tracking the stock have a buy recommendation; 13 sell calls
• The stock currently trades 9.6 percent higher than its 12-month consensus price target of Rs 801.58

Benchmark indices in Europe have opened on a firm footing after three straight days of losses. The focus is on economies in the region that will be exiting the Covid-19 lockdown.

The Stoxx 600 is up 1.3 percent on open and all sectors are trading with gains. Miners, travel & leisure along with banks are some of the top gainers. Futures on the Dow Jones are trading with gains of 230 points.

Here's a look at how benchmarks across Europe have opened:

• Euro Stoxx 50 up 1.2 percent to 2,850
• DAX up 1.5 percent to 10,622
• CAC up 1.7 percent to 4,455
• FTSE 100 up 1.5 percent to 5,838
• IBEX 35 up 1.4 percent to 6,761

The company was back to reporting profits after reporting a net loss in the previous quarter.

Net profit rose 35 percent compared to last year to Rs 54.92 crore, aided by a tax benefit of Rs 52.2 crore.

It has also reported an exceptional loss of Rs 66.2 crore this quarter which represents provisions for impairment in the value of certain parts and equipment, glass bottles and plastic shells, as per its press release.

Shares that were trading with gains of as much as 5.2 percent have fallen of the day's high post the announcement and now trade 1 percent higher at Rs 623.70.

• Benchmark indices off day's high
• Nifty up 0.4 percent at 9,332
• Nifty futures trade at a discount of 9 points
• Sensex up 0.5 percent at 31,868
• Nifty Bank down 0.1 percent at 19,719
• Nifty Midcap Index up 0.7 percent
• Nifty Smallcap Index up 0.1 percent
• India Volatility Index down 3.3 percent to 42.21
• Nifty Auto and Nifty Metal Index up 1 percent each
• Nifty Realty Index remains top sectoral laggard; down 1.9 percent
• Bharti Infratel remains top Nifty gainer; up 9 percent
• Asian Paints is the top Nifty loser; down 3.5 percent
• 879 stocks on the NSE are gaining while 785 trade with losses

• Trades at the lowest level since February 2014
• Down for the third straight day
• Down 8.5 percent over the last 3 trading sessions
• Today's volumes are 10.1 times higher than its 30-day average
• The stock has gained only thrice in the last 14 trading sessions
• It has corrected 26 percent in the last 14 sessions
• Has fallen over 71 percent from its 52-week high of Rs 125 on June 4, 2019
• 12 out of the 13 analysts tracking the stock have a buy recommendation; 0 sell calls
• Return potential of the stock as per Bloomberg data is 59 percent

Shares of the Non-Banking Finance Company fell as much as 4.48 percent to Rs 17 in today's trading session.

India Ratings and Research has placed the company's bank facilities under Rating Watch Negative due to the Covid-19-led Lockdown which is likely to have an impact on the company's asset quality.

Shares are down for the second straight day on volumes that are 0.6 times higher than its 30-day average.

The company has informed the exchanges that it is gearing up to commence partial operations at its Baramati plant as per Government guidelines. It has also obtained permission from the local district authorities for the same.

Shares gained as much as 3.7 percent to Rs 279.85 after a 13 percent fall in Monday's session.

• Second best performer on the Nifty Smallcap Index
• Locked in an upper circuit of 5 percent
• Fourth straight day of gains
• Locked in an upper circuit of 5 percent for all four days
• Up 21.5 percent in the last 4 sessions
• Today's volumes are only 0.1 times higher than its 30-day average
• Trades at 5.6 times estimated forward Earnings Per Share as compared to its two-year historical average of 11.3 times
• All five analysts tracking the stock have a buy recommendation
• Return potential of the stock as per Bloomberg data is 133 percent

• Reliance Industries' 1,500 Call: Premium up 15.8 percent to Rs 68.9. The contract has shed 61,500 shares in Open Interest.
• Bharti Airtel's 600 Call: Premium up 20.1 percent to Rs 14. The contract has added 2.38 lakh shares in Open Interest.
• Axis Bank's 420 Call: Premium up 4.3 percent to Rs 29.1. The contract has added 1.14 lakh shares in Open Interest.

Shares of the indigenous seed company gained as much as 5.2 percent to Rs 286 in today's trading session.

In an update to the shareholders on Monday, the company informed that it has managed to to receive 92 percent of the targeted seed production from the fields. The rest of the 8 percent will be received by May 15.

It also informed shareholders that all the company's plants are now fully operational.

Shares are up for the seventh straight day and have rebounded over 125 percent from its 52-week low of Rs 126.25 on March 30, 2020.

• Nifty May futures add 7.7 percent in Open Interest and 6.86 lakh shares
• Nifty Bank May futures add 14.4 percent in Open Interest and 1.84 lakh shares

Nifty: May 7 Expiry

• 9,500 Call: Premium up 4.6 percent to Rs 82.55. The contract has added 5.23 lakh shares in Open Interest.
• 9,000 Put: Premium falls 58.2 percent to Rs 34.45. The contract has added 3.94 lakh shares in Open Interest.
• 9,300 Put: Premium falls 41.2 percent to Rs 109.9. The contract has added 6.02 lakh shares in Open Interest.

Nifty Bank: May 7 Expiry

• 19,000 Put: Premium falls 41.4 percent to Rs 200. The contract has added 1.37 lakh shares in Open Interest.
• 21,000 Call: Premium falls 19 percent to Rs 119.3. The contract has added 2.37 lakh shares in Open Interest.
• 20,500 Call: Premium falls 14.2 percent to Rs 222. The contract has added 1.86 lakh shares in Open Interest.

• Benchmark indices off their opening highs
• Nifty up 0.6 percent at 9,352
• Nifty futures trade at a discount of 17 points
• Sensex up 0.6 percent at 31,902
• Nifty Bank up 0.2 percent at 19,782
• Nifty Midcap and Smallcap Index up 0.5 percent each
• India Volatility Index down 3.2 percent to 42.27
• All sectoral indices are off their opening highs
• Nifty Auto (Up 1.2 percent) and Nifty Metal (Up 1 percent) are holding on to gains
• Nifty Realty slips into the red; down 1.1 percent
• Bharti Infratel is the top Nifty gainer; up 7.4 percent
• Bajaj Finance is the top Nifty laggard; down 2.4 percent
• 1,046 stocks on the NSE trade with gains while 553 trade with losses

The currency opened marginally stronger in today's trading session after having the biggest single-day fall in a month on Monday.

The rupee opened at 75.66 against the U.S. Dollar as compared to Monday's closing of 75.72.

Yield on the 10-year bond opened at 6.085 percent as compared to Monday's close of 6.083 percent.

The Mumbai-based private lender informed the exchanges that it will consider raising funds at its board meeting on May 9.

The fund raising will be considered by way of issuance of debt securities including NCDs, bonds, notes, offshore certificates among other, as per the bank's exchange filing.

The fund raise can be considered in single or multiple tranches and through public or private placement.

The stock gained as much as 3 percent to Rs 348.30 after ending 11 percent lower in Monday's trading session.

A committee constituted by the company's Board of Directors has approved offering Non-Convertible Debentures (NCDs) aggregating up to Rs 1,000 crore.

These NCDs will be rated, listed, unsecured and redeemable in nature as per the company's statement to the exchanges.

The NCDs will be offered in three tranches of Rs 500 crore, Rs 300 crore and Rs 200 crore respectively. The tenor on each of these is 875 days, 934 days and 965 days respectively. These NCDs will be listed on BSE and NSE.

Shares gained as much as 3.46 percent to Rs 86.80 on the National Stock Exchange.

The company updated the exchanges that it has recorded nil production and sales for the month of April as production across its manufacturing facilities was suspended in wake of the nationwide lockdown announced to combat the Covid-19 pandemic.

Shares are off its opening highs, gaining as much as 3.1 percent to Rs 50.85.

Shares of the FMCG company gained as much as 6.1 percent to Rs 301.9 after its fourth quarter earnings.

The company reported a volume de-growth of 3 percent in its India business while its overall volume de-growth stood at 4 percent.

It has maintained its medium-term projections of 13-15 percent revenue growth and 8-10 percent volume growth.

Most brokerages too have maintained their stance on the stock citing its performance to be better than its peers.

Shares have snapped a five-day losing streak and are the top performer on the Nifty FMCG index.

Indian equity markets staged a rebound after Monday's 6 percent drop despite thin trading in Asia. Futures on the Dow Jones currently trade higher by 190 points.

The S&P BSE Sensex opened 1.47 percent higher at 32,182. The index had shed 2,000 points in Monday's session.

The NSE Nifty 50 index opened at 9,429, up by 1.46 percent. All but one stock in the 50-stock index opened with gains.

Among sectoral indices, the Nifty Bank and the Nifty Metal index opened with gains of 2 percent. Both indices had declined 8 percent in Monday's trade. Auto, FMCG, Media and Realty indices opened with gains between 1-2 percent.

• Sell Nifty for target of 9,200, 9,056 and 8,925 with a stop loss above 9,453
• Sell Nifty Bank for target of 19,304 and 19,050 with a stop loss of 20,160
• Sell Havells for target of Rs 513 and Rs 505 with a stop loss above Rs 535
• Sell Bajaj Finance for target of Rs 1,952 and Rs 1,917 with a stop loss above Rs 2,160
• Buy BHEL for target of Rs 24.85 and Rs 25.75 and stop loss below Rs 22.45

• Buy Nifty Futures above 9,350 for target of 10,000 and stop loss of 9,100
• Buy Reliance Industries above Rs 1,450 for target of Rs 1,700 and stop loss of Rs 1,330
• Buy HUL futures above Rs 2,100 for target of Rs 2,300 and stop loss of Rs 2,000

• Marico: Reports an overall volume contraction of 4 percent while volume contraction in India stood at 3 percent. The company's net profit fell 51 percent due to a tax write-back of Rs 188 crore in the base quarter. It has also said that it will take a step back from premiumisation initiatives in the short-term. It has maintained its medium-term aspiration of 8-10 percent volume growth and 13-15 percent revenue growth.
• Lupin: The company’s U.S. arm has announced positive top-line results from its pivotal Phase 3 clinical trial to assess efficacy and safety of single-dose Solosec which is used to cure trichomoniasis. Company now plans to submit a supplemental New Drug Application for Solosec to the U.S. FDA for the afore-mentioned treatment in the second half of calendar year 2020.
• ICICI Bank: To consider raising capital via debt on May 9
• Nath Bio-Genes: Has received 92 percent of the targeted seed production from the fields. Balance 8 percent expected to be received by May 15. All plants have become fully operational.
• Thermax: Nalanda India Equity Fund increased the stake in the company by 0.83 percent to 5.44 percent on April 29.
• Endurance Technologies: All operating arms in Italy except the foundry plant have resumed operations from May 4. Foundry plant expected to resume operations from May 11. All the plants shall gradually be ramping up operations to align with the off-take from their respective OEM customers.
• Non-Nifty Earnings Today: SBI Life Insurance, Astec LifeSciences, NIIT Technologies, Persistent Systems, Varun Beverages, Tata Coffee, Rallis India, Elantas Beck.
• Healthcare Global: Scottish Oriental Smaller Companies sold 4.52 lakh shares or 0.51 percent stake at Rs 77.08 per share in a bulk deal.
• Mindtree: Promoter Subroto Bagchi sold 1.34 lakh shares between April 29-30, as reported on May 4.

• Benchmark indices stage a late rally to end with gains
• The S&P 500 ended with gains of 0.4 percent led by energy and utilities
• Tech shares outperforming led to the Nasdaq ending with gains of 1.2 percent
• Tensions between U.S. and China continue to persist
• Airlines were the biggest drags as Berkshire Hathway said that it has exited the sector
• Oil prices extended gains past the $20 per barrel mark, the highest in two weeks

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Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 1.4 percent to 9,375 as of 7:35 a.m.

Australia and Hong Kong are the only markets in the Asia Pacific that are open for trade today. Markets in Japan, China and South Korea are shut on account of a holiday.

Markets in Hong Kong edged higher this morning despite its GDP seeing the worst contraction in the first quarter. Australian stocks, too, gained. Futures on the Dow Jones are higher by 210 points.

Oil prices are up for the fifth straight day with the West Texas Intermediate crude rising past the $20-per-barrel mark.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.