Midday Review

Date Heading Details
09-Apr-2020   14:00 Hrs IST Benchmarks maintain healthy gains in late afternoon sessions <P align=justify>Indian equity markets continued to trade with healthy gains in the late afternoon sessions, with Sensex and Nifty garnering gains of four percent. Among heavy-weights Cipla, Bajaj Auto and Maruti Suzuki exhibited a smart performance. Buoyant Mid-caps and Small-caps also elevated over 3% gains on their respective front line stocks. Sentiments remained upbeat, as Finance Ministry has allowed all states to borrow a cumulative Rs 3.20 lakh crore from market between April-December. The move comes amid states' demand for higher funds from the Centre to meet the expenses in dealing with COVID-19 pandemic. Market-men also took support with the private report stating that a second stimulus package India is poised to announce in coming days will be worth around Rs 1 lakh crore ($13 billion) and focus on help for small and medium businesses weathering the coronavirus outbreak. On the sectoral front, oil sector were trading in green despite India's fuel consumption in March shrank by 18 percent, the biggest decline in more than a decade, as a nationwide lockdown halted economic activity and travel. Diesel, the most consumed fuel in the country, saw demand contract by 24.23 percent to 5.65 million tonnes. <P align=justify>On the global front, European markets were trading higher, as policymakers discuss how and when the global economy can reopen with data showing a slowing spread of the coronavirus. Back home, in scrip specific development, shares of Bharti Airtel gained on making kids content library free to all `Airtel Thanks customers'.<P align=justify>The BSE Sensex is currently trading at 31089.24, up by 1195.28 points or 4.00% after trading in a range of 30420.22 and 31143.82. There were 28 stocks advancing against 2 stocks declining on the index.<P align=justify>The broader indices were trading in green; the BSE Mid cap index gained 3.79%, while Small cap index was up by 3.19%.<P align=justify>The top gaining sectoral indices on the BSE were Auto up by 8.85%, Consumer Discretionary up by 5.21%, Telecom up by 5.17%, Healthcare up by 5.16% and Bankex was up by 4.79%,while there were no losing sectoral indices on the BSE.<P align=justify>The top gainers on the Sensex were Bajaj Auto up by 11.17%, Maruti Suzuki up by 10.30%, Mahindra &amp; Mahindra up by 9.97%, Hero MotoCorp up by 9.62% and HDFC up by 9.22%. On the flip side, Hindustan Unilever down by 3.33% and Tech Mahindra down by 2.71% were the only losers.<P align=justify>Meanwhile, warning that the COVID-19 pandemic is expected to result in significant adverse economic impacts globally, the United Nations (UN) in its latest report ‘Economic and Social Survey of Asia and the Pacific (ESCAP) 2020: Towards sustainable economies' has said that India's gross domestic product (GDP) growth is likely to slow down to 4.8 per cent in the current fiscal (FY21).<P align=justify>The report also noted that COVID-19 is having far-reaching economic and social consequences for the region, with strong cross-border spillover effects through trade, tourism and financial linkages. It further said that the country's economic growth could stand at 5.1 per cent for fiscal year 2021-22, adding that these are very preliminary forecasts based on the data and information available up to March 10.<P align=justify>According to the report, as the COVID-19 pandemic is still evolving rapidly and showing no signs of abating as of March 31, 2020, its negative impacts on economic performance of countries and territories in Asia and the Pacific will likely be very significant. The report also noted that COVID-19, first reported in China and subsequently globally, has significantly increased the downside risks to the Asia and Pacific region's near-term economic outlook.<P align=justify>The CNX Nifty is currently trading at 9098.75, up by 350.00 points or 4.00% after trading in a range of 8904.55 and 9111.75. There were 47 stocks advancing against 3 stocks declining on the index.<P align=justify>The top gainers on Nifty were Cipla up by 14.08%, Bajaj Auto up by 11.30%, Maruti Suzuki up by 10.29%, Mahindra &amp; Mahindra up by 9.99% and Tata Motors up by 9.47%. On the flip side, Hindustan Unilever down by 3.55%, Tech Mahindra down by 3.07% and UPL down by 0.17% were the top losers.<P align=justify>European markets were trading higher; UK's FTSE 100 increased 119.74 points or 2.11% to 5,797.47, France's CAC increased 81.02 points or 1.82% to 4,523.77 and Germany's DAX was up by 241.22 points or 2.33% to 10,574.11.&nbsp;
09-Apr-2020   12:03 Hrs IST Firm trade persists over Dalal Street <DIV align=justify>Firm trade continued over the Dalal Street in late morning deals, with Sensex and Nifty gaining over 3% each. Traders were getting comfort, after Commerce and Industry Minister Piyush Goyal assured that the ministry will make efforts for release of 'urgent and important' export orders which are stuck for some reasons. He said the ministry is working aggressively to revitalize exports, and looking for export opportunities to expand. The street paid no heed towards UN report stating that India's GDP growth for the current fiscal is expected to slow down to 4.8 per cent, warning that the COVID-19 pandemic is expected to result in significant adverse economic impacts globally. </DIV><DIV align=justify><BR></DIV><DIV align=justify>On the global front, Asian markets were trading in green, after Taiwan's consumer prices declined unexpectedly in March, mainly due to the fall in prices of fuels and lubricants. The data from the Directorate-General of Budget, Accounting and Statistics showed that the consumer price index fell 0.01 percent year-on-year in March, following a 0.21 percent decrease in February. On a month-on-month basis, consumer prices fell 0.45 percent in March.</DIV><DIV align=justify><BR></DIV><DIV align=justify>The BSE Sensex is currently trading at 30798.65, up by 904.69 points or 3.03% after trading in a range of 30420.22 and 30847.10. There were 27 stocks advancing against 3 stocks declining on the index.</DIV><DIV align=justify><BR></DIV><DIV align=justify>The broader indices were trading in green; the BSE Mid cap index was up by 3.31%, while Small cap index was up by 2.68%.</DIV><DIV align=justify><BR></DIV><DIV align=justify>The top gaining sectoral indices on the BSE were Auto up by 6.72%, Healthcare up by 4.75%, Consumer Discretionary up by 4.01%, Consumer Durables up by 3.77% and Metal up by 3.62%, while there were no losing sectoral indices on the BSE.</DIV><DIV align=justify><BR></DIV><DIV align=justify>The top gainers on the Sensex were Hero MotoCorp up by 8.59%, Maruti Suzuki up by 8.43%, Mahindra &amp; Mahindra up by 7.59%, HDFC up by 7.51% and Bajaj Auto up by 7.47%. On the flip side, Hindustan Unilever down by 2.79%, Tech Mahindra down by 1.17% and Indusind Bank down by 0.25% were the top losers.</DIV><DIV align=justify><BR></DIV><DIV align=justify>Meanwhile, ratings agency ICRA in its latest report has said that volumes for the commercial vehicles (CV) segment are likely to contract further between 8-10 percent in the current financial year (FY21) as the near term outlook of the sector is weighed down significantly by the coronavirus pandemic. It continued to maintain a negative outlook for the CV segment over the near-term given the slowing economic growth, current overcapacity in the CV ecosystem and not so benign financing environment, with challenges further aggravated by the recent and rapid spread of novel coronavirus in India.&nbsp; <BR><BR></DIV><DIV align=justify>According to the report, the demand headwinds are expected to continue over the near-term given the macroeconomic challenges in view of the recent pandemic outbreak coupled with weakening financial profile of fleet operators and significant price hikes because of transition to the BS-VI emission norms. It said this would exert pressure on earnings and overall credit profile of CV OEMs, which have witnessed sharp earnings contraction over the past 3-4 quarters. It also stated that excess capacity created in the system post revision of axle load norms in July 2018 and faster turnaround of vehicle post GST implementation, coupled with slowdown in the economy and infrastructure projects and the resultant lower freight availability continue to weigh on the demand prospects. <BR><BR></DIV><DIV align=justify>Furthermore, the report said the rapid spread of coronavirus and the lockdown imposed in the country has had a significant impact on goods movement and freight availability over recent weeks and may continue over the near-term. Accordingly, it said the outlook for the next financial year (FY22), especially the first half, remains weak given the macroeconomic headwinds in view of recent pandemic outbreak coupled with significant price hikes because of transition to the new emission norms. It also believes an improvement in the economic environment and resolution of liquidity constraints remain critical for a sustained revival in the industry.</DIV><DIV align=justify><BR></DIV><DIV align=justify>The CNX Nifty is currently trading at 9032.50, up by 283.75 points or 3.24% after trading in a range of 8904.55 and 9044.40. There were 46 stocks advancing against 4 stocks declining on the index.</DIV><DIV align=justify><BR></DIV><DIV align=justify>The top gainers on Nifty were Cipla up by 13.31%, Tata Motors up by 9.47%, Maruti Suzuki up by 8.39%, Hero MotoCorp up by 8.37% and Bajaj Auto up by 7.92%. On the flip side, Hindustan Unilever down by 2.82%, Tech Mahindra down by 1.63%, UPL down by 0.23% and Adani Ports &amp; SEZ down by 0.02% were the top losers.</DIV><DIV align=justify><BR>Asian markets were trading mostly in green; Straits Times surged 39.85 points or 1.57% to 2,579.29, Hang Seng gained 191.96 points or 0.80% to 24,162.33, KOSPI jumped 23.88 points or 1.32% to 1,831.02 and Shanghai Composite rose 7.90 points or 0.28% to 2,823.27. On the other hand, Nikkei 225 fell 56.02 points or 0.29% to 19,297.22, Taiwan weighted declined 26.38 points or 0.26% to 10,111.09 and Jakarta Composite was down by 27.25 points or 0.59% to 4,599.45.</DIV><DIV align=justify><BR></DIV>
09-Apr-2020   09:57 Hrs IST Markets trade firm after gap-up opening; IIP data eyed
08-Apr-2020   13:57 Hrs IST Benchmarks trim gains in late afternoon session
08-Apr-2020   12:05 Hrs IST Sensex, Nifty trade in green in late morning deals
08-Apr-2020   09:55 Hrs IST Markets trade flat in early deals
07-Apr-2020   14:00 Hrs IST Benchmarks continue upward rally in late afternoon session
07-Apr-2020   12:14 Hrs IST Markets extend gains in late morning deals
07-Apr-2020   10:01 Hrs IST Benchmarks trade in fine fettle with gains of over 4%
03-Apr-2020   13:56 Hrs IST Local equities continue to trade with negative bias