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Closing Bell
Equity benchmark Sensex jumped 522 points higher and ended at 33,825.53, while the Nify rose 152.95 points to 9,979.10 on Tuesday, led by index-heavyweights Kotak Bank, Bajaj FinServ, Bajaj Finance, HDFC, Indus Ind Bank, Axis Bank, Titan and L&T amid positive cues from global markets.
According to analysts, gradual easing of the lockdown boosted investor sentiment which further strengthened with the buoyancy in the global markets. Besides, the news of the timely arrival of monsoon also aided the surge.
After opening on a tepid note at 33.3030.52, the 30-share index gradually gathered steam in the mid-session hitting a high of 33,866.63, before ended higher by 522.01, or 1.57%, at 33,825.53
Similarly, NSE Nifty advanced 152.95 points or 1.56 per cent to 9,979.10.
Bajaj Finance was the top gainer in the Sensex pack, rising over 8 per cent, followed by Kotak Bank, IndusInd Bank, Axis Bank and PowerGrid
On the other hand, Bharti, Maruti, ITC,Nestle, Hindustan UniLever and HeroMotoCorp were among the laggards.
In the previous session, the BSE barometer settled 879.42 points or 2.57 per cent higher at 33,303.52 and the broader Nifty surged 245.85 points or 2.57 per cent to finish at 9,826.15.
On a net basis, foreign portfolio investors bought equities worth Rs 1,575.46 crore in the capital market on Monday, provisional exchange data showed.
Meanwhile, Moody’s Investors Service on Monday downgraded India’s sovereign rating to ‘Baa3’ from ‘Baa2’, saying there will be challenges in implementation of policies to mitigate risks of a sustained period of low growth and deteriorating fiscal position.
Even though it is a downgrade, the rating is still in investment grade. This is on par with the rating of S&P and Fitch. This is unlikely to impact the market materially since the strength of the market is largely due to the humongous liquidity floating in the global financial system, said VK Vijayakumar- Chief Investment Strategist- Geojit Financial.
Kotak Mahindra Bank shares rally 8 per cent
Shares of Kotak Mahindra Bank on Tuesday gained 8 per cent as promoter Uday Kotak will offload 2.83 per cent stake in the lender to comply with an RBI mandate.
Tata Power shares jump 7 per cent as co completes 51 per cent stake acquisition in TPCODL
Shares of Tata Power on Tuesday rose 7 per cent after the company said it has completed the acquisition of 51 per cent stake in TP Central Odisha Distribution Ltd for Rs 178.5 crore.
The stock advanced 6.82 per cent to Rs 42.25 on the BSE.
On the NSE, it gained 6.97 per cent to Rs 42.20.
TP Central Odisha Distribution Ltd (TPCODL) carries out the business of Central Electricity Supply Utility of Odisha (CESU). The acquisition paves the way for taking over the power supply business of five cities in Odisha by Tata Power.
“Tata Power has acquired 51 per cent equity stake in TPCODL at a consideration of Rs 178.5 crore,” a Tata Power statement said
NIFTY SMALL CAP STOCKS
NIFTY FINANCIAL SERVICES
BSE A Group: Upper circuit filter stocks
BSE A group: Upper circuit stocks
The BSE benchmark was being quoted at 33,818.76 and the Nifty was traded higher by 146.85 points at 9,973.
BSE B Group: Upper Circuit stocks
BSE 'B'' Group: Upper circuit stocks
Broker's Recommendation
ICICI SECURITIES
Intra-day F&O recommendations
1. Sell Nifty 10000 Call (June 4 expiry) in the range of | 55-57
2. Buy Bank Nifty in the range of 19750-19800
3. Buy Apollo Tyres in the range of | 105.00-105.50
4. Sell Indraprastha Gas in the range of | 467.00-468.00
Pharma stocks (June 2, 2020)
BSE HEALTHCARE (1-YEAR GRAPH)
Remains Bullish
Broker's call: Polycab India (Buy)
YES Securities
Polycab India (Buy)
CMP: ₹713.65
Target: ₹857
Polycab reported strong numbers led by positive surprise on margins and higher than expected other income. Revenue was weaker than expected due to sluggish domestic market and revenue loss of ₹610 crore due to lockdown. Export revenues jumped 3.4x y-o-y and was flat on a sequential basis led by execution of Dangote order and higher revenues from the US.
11.30 am
Broker's Call
ICICI Securities
Sagar Cements : Target price of Rs 350
Sagar Cements saw another weak quarter as volume recovery was hit by the disruption caused by the virus outbreak. Revenues for Q4FY20 declined 17% YoY to Rs 303.6 crore as volumes for the quarter remained subdued. Volumes were at 0.84MT. Amid weak demand and a consequent weaker pricing scenario in Sagar’s major markets, average realisations was 6.4% YoY to Rs 3,627/t. EBITDA margins deteriorated by 217 bps YoY to 14.7% and EBITDA/t declined 18.5% YoY to Rs 533/t. Lower profitability during the quarter is attributable to lower realisations per tonne.
Some respite was seen in the form of savings in P&F costs that fell 13% YoY on a per tonne basis. On an absolute level, EBITDA dropped 27.7% YoY to Rs 44.7 crore. PAT has shrunk 94% YoY to Rs 1.2 crore owing to higher tax expenses.
Valuation & Outlook
While private demand could be weak and recovery could be prolonged, government spending, could provide cushion to falling demand.
Furthermore, Sagar Cements is currently available at an FY20 EV/t of $30, implying a considerable margin of safety to the replacement cost of $100-110.
ICICI Securties maintains BUY rating but keep our upside limited maintaining caution. The valuation of the company at 8x FY22E EV/EBITDA arrive at a Target price of Rs 350
BSE SECTORAL INDICES
Moody’s downgrade: Analysts see little impact on markets
Moody’s downgrade on India’s sovereign rating is on expected lines, say analysts. The global rating agency on Monday, citing several concerns such as the prolonged period of slower growth, rising debt, and stress in the financial system coupled with “slow reform momentum and constrained policy effectiveness”, downgraded India’s (foreign and local currency) to Baa3 from Baa2 while keeping the outlook ‘negative’
Board meetings tody (Source: MSFL Research)
(Source: MSFL Research)
Board meetings on June 2
(Source: MSFL Research)
F&O Picks from MSFL Research
LUPIN
LUPIN TECHNICALS (F&O)
F&O Picks from MSFL Research
BAJAJ FINANCE
Bajaj Finance stock technicals from MSFL Research
Opening Bell
Equity benchmark Sensex jumped over 337 points on Tuesday led by gains in Pharma, Metal, Auto, Realty, IT and Media stock, which rose over 1 per cent.
Among the BSE pack, significant gainers were Kotak Bank, M&M, HeroMotoCorp, Bajaj Finance, Tata Steel, Sun Pharma, Baja Auto and Bharti Airtel.
The 30-share BSE barometer rose 309.68 points or 0.93 per cent, at 33,613.20.
Similarly, the NSE Nifty was up 85.75 points, or 0.87 per cent, at 9,911.90.
DOLLAR-RUPEE RATES
Broker's call
Geojit Financial
Bajaj Finance (Buy)
CMP: ₹2,160.05
Target: ₹2,570
Bajaj Finance Limited (BFL) is one of the leading non-banking financial companies (NBFC) in India. It is engaged in lending across retail, SME, and commercial customers and accepts public and corporate deposits.
9.10 am
Day Trading Guide for June 02, 2020
₹986 • HDFC Bank
₹699 • Infosys
Apollo Tyres (Rs 104.7)
The stock of Apollo Tyres gained 7.8 per cent accompanied by above average volume on Monday, breaking above a crucial resistance level of ₹100. This rally provides traders with a short-term perspective an opportunity
Asia stocks make cautious gains, weighed down by worries over US-China relations
Asian stocks eked out gains on Tuesday as investors' focus on the prospects of a global coronavirus recovery won out over familiar worries about Sino-US relations and the depth of economic damage.
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