Sensex, Nifty Close At Record High Led By Utilities; Bajaj Twins Worst Performers

Burger King India Ltd. is a prominent gainer among restaurant operators after the country’s western state of Maharashtra, which includes Mumbai, rolls out new rules aimed at easing coronavirus-related curbs that were imposed more than a month ago.

• Maharashtra has announced a plan that takes into account the positivity rate in a district, percentage of beds occupied by patients and oxygen requirements among hospitals to decide on allowing resumption of normal activities in cities; the proposed changes are effective today
• Restaurant, hotel and cinema operators gain as revised rules will allow for at least partial resumption of operations in some cities, based on decisions of local administrations
• Burger King rises as much as 6%; most since May 18
• Westlife Development +2.8%, Coffee Day Enterprises +10%, Barbeque-Nation Hospitality +3.6%
• Multiplex operators PVR and Inox Leisure rise as much as 4.25% and 4%, respectively
• Hotel operators gain; EIH up as much as +3.5%, Lemon Tree Hotels +4.4%

• Adani Ports options volume 3.3x the 20-day average, with 87,234 calls changing hands vs 22,637 puts
  • Stock up 6.1%, volume 2x the 20-day average for this time of day
• Tata Consumer options volume 2.1x the average, with 13,871 calls vs 3,869 puts
  • Stock up 1.8%, volume 0.8x the average
• Grasim options volume 2x the average, with 17,699 calls vs 4,678 puts
  • Stock up 0.1%, volume 1.1x the average
• UltraTech Cement options volume 1.8x the average, with 18,947 calls vs 5,196 puts
  • Stock up 2.7%, volume 1.5x the average
• NTPC options volume 1.6x the average, with 17,565 calls vs 3,813 puts
  • Stock up 3.2%, volume 0.8x the average

MRF reported net income for the fourth quarter that missed the average analyst estimate.

• Net income Rs 317 crore, -53% YoY, estimate Rs 378 crore
• Revenue Rs 4740 crore, +29% YoY, estimate Rs 4,730 crore
• Total costs Rs 4360 crore, +29% YoY
• Other income Rs 56.53 lakh
• Dividend per share Rs 94
• To pay special dividend of Rs 50/share to mark 60th AGM

The Indian rupee advances by the most in a week as easing of some Covid-related restrictions in the national capital Delhi and Maharashtra state boosted sentiment. Bonds trade slightly higher.

• USD/INR fell 0.3% to 72.7675; pair fell 0.4% earlier, the most since May 28
• 10-year yields down 1bp at 6.02% on Monday

“The economic re-opening in some parts of the country is positive for the rupee,” says Anuj Gupta, analyst at IIFL Securities, but warns that the gains may not last as more economic activity should increase demand for oil in the next few weeks at a time when crude prices have been climbing

“Huge oil demand may lead to a weaker rupee in the next few weeks”

Bajaj Finance fell as much as 5.2%, the most intraday since April 19, after the company said B2B and auto finance businesses were the worst hit by lockdowns in different states.

• The businesses delivered only 40% of planned volumes in May, sharply lower compared to 70% in April
• Bajaj estimated an impact of as much as Rs 5,000 crore to its AUM growth plan for FY22 due to disruptions
  • 1Q will see a higher impact on AUM due to lower B2B business volumes
• Other businesses were less impacted and delivered 85% of planned disbursements
• “The second wave has caused a marginal increase in EMI bounce rates in Q1 over Q4 FY21. Average
  EMI bounce rates in 1Q were approximately 1.08X of 4Q”
• Bajaj also said it expects an incremental credit cost of up to 13 billion rupees versus planned credit cost in FY22

TVS Motor Co gained as much as 6.3%, the most since April 28, after about 18.9 million shares change hands on NSE, according to data compiled by Bloomberg.

• Best performer on NSE Nifty Auto, NSE Nifty Midcap 100 indices
• Buyers, sellers not immediately known

Covid Crisis Drives IndiGo to Worse-Than-Expected Loss

“Notwithstanding some adverse impact on economic activities in Q1, a sharp pickup in capital expenditures in the current fiscal year is still on the cards,” Binod Modi, an analyst at Reliance Securities Ltd. said in a note. “Investors will continue to focus on the trajectory of daily caseloads and the vaccination ramp up in the country in the near term,” he said.

Indian sovereign bonds may come under pressure as oil prices touching $70 a barrel for the first time since 2018 threatens to weigh on the nation’s inflation and finances.

• USD/INR rose 0.1% to 73.0025 on Friday
  • Implied opening from forwards suggest spot may start trading around 72.95
• India’s foreign exchange reserves have by all indications crossed $600 billion, central bank chief Shaktikanta Das said on Friday, a huge buffer that will help insulate Asia’s third-largest economy from global spillovers and volatile external flows
• 10-year yields rose 3bps to 6.03% on Friday
• The RBI expanded its version of quantitative easing and lowered its economic growth forecast on Friday as the world’s worst Covid-19 wave sweeps through the nation

All You Need To Know Going Into Trade On June 7