Market updates: Sensex rallies 595 points to close at 32,200

Nifty spurts 175 points to 9,490

 

3:40 pm

Closing bell

Equity benchmark Sensex rallied 595 points on Thursday, tracking gains in index-heavyweights HDFC twins, Reliance Industries, L&T and ICICI Bank amid positive cues from global markets.

Extending its gains for the second session, the 30-share index hit a high of 32,267.23 points during the day ahead of the expiry of May derivatives contracts. It finally ended 595.37 points or 1.88 per cent higher at 32,200.59.

Similarly, NSE Nifty jumped 175.15 points or 1.88 per cent to 9,490.10.

L&T was the top gainer in the Sensex pack, spurting over 6 per cent, followed by Hero MotoCorp, HDFC Bank, IndusInd Bank, Maruti, HDFC and HCL Tech.

On the other hand, ITC, SBI and Bharti Airtel ended in the red.

Benchmarks witnessed a broad-based rally on account of short-covering by market participants as May derivatives expired at the end of the session, analysts said.

Further, domestic investors took positive cues from most global markets amid optimism over the reopening of major economies across the world.

Benchmarks in Shanghai and Tokyo ended with gains, while Hong Kong and Seoul settled in the red.

Stock exchanges in Europe began on a positive note, rising up to 1 per cent.

International oil benchmark Brent crude futures rose 0.92 per cent to $34.92 per barrel.

On the currency front, the rupee settled 5 paise down at 75.76 against the US dollar. - PTI

3:20 pm

European shares extend gains as travel stocks shine

The pan-European STOXX 600 index was up 0.1 per cent.   -  Bloomberg

 

European shares rose for the fourth straight session on Thursday, as optimism over businesses reopening and a massive stimulus plan for the European Union outweighed concerns over rising US-China tensions.

The pan-European STOXX 600 rose 0.9 per cent to hit a fresh 11-week high, led by a 2 per cent jump in travel & leisure stocks.

UK's Cineworld Group Plc surged 24 per cent as it expects to reopen all its cinemas in July and secured an extra $110 million from lenders to help it survive the coronavirus lockdowns.

Most European subsectors gained, with healthcare and retail also boosting the STOXX 600. Click here to read more on the European markets.

2:55 pm

Rupee settles 5 paise lower at 75.76 against US dollar

 

The rupee settled 5 paise down at 75.76 against the US dollar on Thursday amid escalating tension between the US and China.

Forex traders said the rupee traded in a narrow range as positive domestic equities and improving risk appetite were offset by a flare-up in US-China tensions.

At the interbank forex market, the rupee opened weak at 75.90, but pared most initial losses and finally settled at 75.76 against the US dollar, down 5 paise over its last close.

It had settled at 75.71 against the US dollar on Wednesday.

During the session, the local unit witnessed an intra-day high of 75.69 and a low of 75.90. Click here to read the rupee report in full.

2:30 pm

Euro creeps higher on EU recovery fund optimism

The euro continued to rise on Thursday, boosted by a 750-billion euro ($826.35 billion) EU plan to prop up the bloc's coronavirus-hit economies, though gains were limited as doubts about delivering the scheme crept in.

The EU executive unveiled a plan on Wednesday to support economies hammered by the pandemic, hoping to end months of squabbling over how to fund a recovery that exposed faultlines across the 27-nation bloc.

Under the proposal, the EU Commission will disburse two-thirds of the funds in grants and the rest in loans to cushion the unprecedented slump expected this year.

The 500 billion euros in grants reflects the wishes of the two biggest EU economies, France and Germany, which came up with a grants-only proposal last week. Click here to read more on the global forex markets.

 

2:15 pm

Indices hold firm

The benchmark indices, Sensex and Nifty, held steady in the afternoon session on Thursday. The 30-share benchmark edged up 483 points or 1.53 per cent to 32,088, while the broader 50-share index moved up to 9,461, up 146 points or 1.57 per cent higher.

The top gainers on Sensex were HeroMoto Corp, L&T, IndusInd Bank, HDFC Bank and Maruti, while the laggards were ITC, Bharti Airtel, Infosys, SBI and TCS.

Among the BSE sectoral indices, the capital goods index was up 4 per cent, while consumer goods and service, finance, industrials, auto, banking, metals and realty gained over 2 per cent each.

 

2:00 pm

Oil falls as surprise US stock build douses demand recovery hopes

 

Oil prices plunged on Thursday after US industry data showed a surprise steep build in crude oil inventories, dampening hopes of a smooth recovery in demand as some countries begin to ease their way out of coronavirus lockdowns.

The decline in oil benchmarks extended losses from Wednesday over uncertainty about Russia's commitment to deep output cuts ahead of a June 9 meeting of the Organization of the Petroleum Exporting Countries and its allies, a grouping dubbed OPEC+.

US West Texas Intermediate (WTI) crude futures were down 3 per cent, or 98 cents, at $31.83 a barrel at 0709 GMT. The US futures slipped earlier as much as 5 per cent to a low of $31.14. Click here to read more on the oil markets.

 

1:40 pm

Asian stocks sag as Hong Kong tensions sour mood

Japan's Nikkei closed flat, while Australia's S&P/ASX 200 fell 1.7 per cent. Stocks in Hong Kong and China traded either side of flat. Representative image   -  Bloomberg

Asian shares erased gains and the yuan languished on Thursday on growing worries China's planned security law for Hong Kong would spark a broader diplomatic confrontation with the US.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.35 per cent, having been in positive territory earlier in the day. Shares in Hong Kong skidded 1.75 per cent. Stocks in China fell 0.55 per cent. US stock futures pared earlier gains to trade 0.17 per cent higher.

Not all markets fell with investors in some countries keeping their focus on prospects of a post-coronavirus economic recovery.

Japan and Australia were both higher, while European stock futures also defied the gloom with the pan-region Euro Stoxx 50 futures up 1.22 per cent, German DAX futures rising 1.3 per cent and FTSE futures climbing 1.34 per cent. Click here to read in full the Asian markets report.

1:25 pm

FIIs trimmed stake in 90 per cent of Nifty 50 stocks in March quarter: Motilal Oswal study

 

March 2020 quarter shareholding data reveal the complete aversion of foreign institutional investors (FIIs) to Indian stocks. FIIs have reduced their stake in 90 per cent of Nifty 50 stocks, which are widely considered safe bets, on a quarter-on-quarter basis, a study by Motilal Oswal Institutional Equities has said. Further, they reduced ownership in 67 per cent of Nifty 500 companies during the March quarter, it further said.

Bharti Airtel and Zee Entertainment Enterprises witnessed a QoQ increase in FII holding, while Eicher Motors, Axis Bank, Tata Steel, ICICI Bank and Grasim Industries were the top stocks to see a decline in FII holding.

FIIs holding in Nifty 500 companies has hit a five-year low, declining 140 basis points (bps) QoQ to 21 per cent at the end of the March quarter. Click here to read more on FIIs trim stake in Nifty 50 stocks.

 

1:10 pm

How pessimism on banking stocks led to a short squeeze

Kotak Mahindra Bank   -  Bloomberg

 

Even as the banking sector is facing another crises due to the Covid-19 pandemic, the Bank Nifty index has managed to gain more than 10 per cent over two days- Wednesday and Thursday's half day trading session so far.

The billion dollar qualified institutional placement issue of country's second largest private bank, Kotak Mahindra Bank was also subscribed three times over in minutes of opening of Thursday.

Short-sellers, who were hanging on to the crisis story, were caught on the wrong foot. The rise in positive sentiments could continue till short positions are wound up, brokers said. Click here to read the report on short squeeze in banking stocks.

 

12:50 pm

Ujjivan SFB Q4 net profit up 14.6%

 

 Ujjivan Small Finance Bank registered a 14.6 per cent increase in its net profit in the fourth quarter of 2019-20 to ₹73.1 crore compared to ₹63.78 crore a year ago.

Its net profit surged by 75.6 per cent in 2019-20 to ₹349.92 crore from ₹199.22 crore in 2018-19.

For the quarter ended March 31, 2020, its total income grew 34.4 per cent to ₹809.65 crore from ₹602.23 crore a year ago.

Net interest income grew 46 per cent in the fourth quarter of 2019-20 to ₹ 466 crore. Net interest margin improved to 11.2 per cent from 10.8 per cent a year ago.

Provisions surged to ₹ 96.88 crore from ₹12.37 crore a year ago. It has made Covid-related provisions of ₹ 70 crore.

Gross non-performing assets amounted to ₹137.14 crore or 0.97 per cent of gross advances as on March 31, 2020 from 0.92 per cent a year ago.

Net NPAs stood at 0.2 per cent as on March 31, 2020 versus 0.26 per cent a year ago.

“Business remains on strong fundamentals with high capital adequacy and liquidity, strong credit quality and improved processes and efficiencies. We expect the mass market to show resilience and recover strongly,” said Nitin Chugh, MD and CEO, Ujjivan SFB. - PTI

 

12:35 pm

United Spirits shares fall up to 4 per cent after Q4 results

Shares of United Spirits on Thursday fell nearly 4 per cent after the firm reported a decline of 57.82 per cent in its consolidated net profit for the fourth quarter ended March 2020.

The stock dropped 3.54 per cent to Rs 557.30 on the BSE. On the NSE, it fell 3.66 per cent to Rs 557.

Diageo-controlled liquor maker United Spirits on Wednesday reported a decline of 57.82 per cent to Rs 49.3 crore in its consolidated net profit for the fourth quarter ended March 2020, mainly impacted by disruptions in the market and a consumption slowdown on account of Covid-19.

The company had posted a net profit of Rs 116.9 crore in the January-March quarter a year ago, United Spirits said in a regulatory filing.

Its revenue from operations was down 11.86 per cent to Rs 6,419 crore during the quarter under review as against Rs 7,283.1 crore in the corresponding period of the previous fiscal. - PTI

12:20 pm

Nifty call: Buy on dips with stop-loss at 9,380

 

The Indian benchmark indices opened on the front foot and have been gaining since the session open despite mixed cues from the Asian markets. The Nifty spot and the Sensex spot indices are up by a little over 1.5 per cent each.

In Asia, the Nikkei index gained about 2 per cent today, whereas the Hang Seng and the Shanghai index are down by 1.3 per cent and 0.2 per cent respectively. Notably, the US benchmark indices closed on a positive note yesterday as the S&P 500 and Dow posted a gain of 1.5 per cent and 2 per cent, respectively.

The market breadth of the Nifty 50 index shows a ing bullish inclination as the advances-declines ratio is at 38-12. The mid-cap and small-cap indices, too, are in the green, indicating broad-based buying today. Barring the Nifty IT index (down by 0.8 per cent) and the Nifty Pharma index (down by 0.2 per cent), all the other sectoral indices are trading higher today. The Nifty PVT Bank index, up by 3.7 per cent, is the top gainer, followed by the Nifty Bank index, up by 3.5 per cent. Click here to read in full the Nifty call report.

 

 

 

12:00

UltraTech Cement Ltd (₹3,740): Buy

The stock of UltraTech Cement can be considered by traders looking for short-term opportunities. The stock has broken out of a crucial resistance and is showing signs of further upside.

The stock, which has been consolidating between Rs 3,250 and Rs 3,640 since mid-April, breached the upper boundary of the range on Tuesday. The 21-day moving average (DMA) has crossed over the 50-DMA, hinting at a bullish trend reversal. Adding to it, the daily Relative Strength Index (RSI) has moved above the midpoint of 50 and is pointing upwards.

The Moving Average Convergence Divergence (MACD) indicator, in an upward trajectory, has moved into positive territory. Moreover, an ascending triangle pattern on the daily chart stands confirmed and indicates a potential rally from the current levels.

Considering the above factors, traders can take a bullish view on the stock and initiate fresh long positions on declines, with stop-loss at Rs 3,640. The near-term targets can be Rs 3,860 and Rs 4,000. Notably, according the ascending triangle pattern, the stock might even appreciate to Rs 4,280.

Supports: Rs 3,640 and Rs 3,600

Resistances: Rs 3,860 and Rs 4,000

 

11:36 am

Rupee falls 19 paise to 75.90 against US dollar in early trade

 

The rupee depreciated 19 paise to 75.90 against the US dollar in opening trade on Thursday, tracking weak Asian currencies amid an escalation of tensions between the US and China.

Forex traders said rising US-China tension weighed on the local currency, even as positive domestic equities and improving risk appetite supported the local unit.

The rupee opened weak at 75.90 at the interbank forex market, down 19 paise over its last close. It had settled at 75.71 against the US dollar on Wednesday. Click here to read more on the rupee.

 

11:10 am

Sensex, Nifty hold firm

The benchmark indices, BSE Sensex and NSE Nifty, were trading on a firm note in the morning session on Thrusday.

Sensex was at 32,076, up 471 points or 1.49 per cent firmer, while the Nifty was at 9,453,  up 138 points or 1.48 per cent.

The top gainers on the Sensex were IndusInd Bank, HDFC Bank, Axis Bank, HDFC and HeroMoto Corp, while the laggards were TCS, ITC, Infosys, Bharti Airtel and HCL Tech.

According to a PTI report, the Sensex jumped over 200 points in early trade as index-heavyweights HDFC twins, Reliance Industries and ICICI Bank extended their gains ahead of May derivatives expiry.

In the previous session, the BSE barometer settled 995.92 points or 3.25 per cent higher at 31,605.22, while the broader Nifty surged 285.90 points or 3.17 per cent to 9,314.95.

On a net basis, foreign portfolio investors sold equities worth Rs 334.74 crore in the capital market on Wednesday, provisional exchange data showed.

Benchmarks are rising on account of short-covering by market participants ahead of May derivatives expiry, analysts said.

However, investor sentiment continues to remain cautious as coronavirus cases has been on a rise in the country, they noted.

The number of coronavirus cases in India climbed to 1,58,333 and the death toll touched 4,531, according to Health Ministry data.

Globally, the number of cases linked to the disease has crossed 56.93 lakh and the deceased tally stood around 3.55 lakh.

Meanwhile, bourses in Tokyo and Seoul were trading with gains as optimism over the reopening of major economies across the planet continued to push equities higher.

Benchmarks in Shanghai and Hong Kong were in the red tracking rising US-China tensions.

Stock exchanges on Wall Street ended on a positive note in overnight trade.

International oil benchmark Brent crude futures were trading 2.53 per cent lower at $33.86 per barrel (with inputs from PTI).

11:00 am

Dollar treads water against euro; yuan sinks on US-China tensions

The dollar steadied against the euro on Wednesday even as the common currency remained supported by news of a proposal for an economic recovery package to help the euro zone region recover from the coronavirus pandemic.

The euro was up 0.03 per cent against the dollar at $1.09855, after rising as high as $1.10315, its strongest since April 1. The common currency gained 0.8 per cent on the greenback on Tuesday.

The European Union’s (EU) 's executive unveiled a 750 billion euro ($825.23 billion) plan on Wednesday to prop up economies hammered by the coronavirus crisis, hoping to end months of squabbling over how to fund a recovery that has exposed faultlines across the 27-nation bloc. Click here to read more.

10:40 am

Daily Rupee call: Rupee likely to inch up

The rupee (INR) has begun the session today on a weaker note at 75.9 versus yesterday’s close of 75.71 against the dollar (USD). Nevertheless, the exchange rate remains in the range 75.6 and 76, within which it has been oscillating for the past two weeks.

Currently trading around 75.9, the domestic currency has a substantial support at 76. A break below this level can intensify sell-off. But if it takes support and strengthens, it might advance towards the resistance at 75.6. A breakout this level can take the exchange rate to 75.4.

On Wednesday, the Foreign Portfolio Investors (FPI) were net sellers. The net outflow stood at nearly ₹335 crore (equity and debt combined). Despite this, the rupee ended yesterday’s session flat. Click here to read in full the Daily Rupee Call report.

10:20 am

Asian shares set to sag on US-China woes

sian shares are likely to dip on Thursday after remarks by United States (US) Secretary of State Mike Pompeo that Hong Kong no longer warranted special treatment under US law reignited worries about worsening relations with Beijing.

After posting early losses, E-Mini futures for the S&P 500 edged up 0.03 per cent, while Nikkei futures pointed to a loss of 10 points.

Pompeo said overnight that China had undermined Hong Kong's autonomy so fundamentally that the territory no longer warranted special treatment, a potentially big blow to the city's status as a financial hub.

Some investors worry a punitive US response to China on the issue of Hong Kong could result in a tit-for-tat reaction from Beijing, further straining ties between the world's two biggest economies and further hobbling global growth. Click here to read more.

9:10 am

Day Trading Guide for Thursday May 28, 2020

₹903 • HDFC Bank

S1

S2

R1

R2

COMMENT

890

875

920

935

Initiate fresh long positions with a fixed stop-loss if the stock reverses higher from ₹890 levels

 

₹705 • Infosys

S1

S2

R1

R2

COMMENT

695

685

715

725

Make use of intra-day declines to buy the stock of Infosys while maintaining a stop-loss at ₹695 levels

 

₹192 • ITC

S1

S2

R1

R2

COMMENT

189

186

195

198

Consider initiating fresh long positions with a stiff stop-loss if the stock of ITC rallies above ₹195 levels

 

₹77 • ONGC

S1

S2

R1

R2

COMMENT

75

73

80

82

Initiate fresh long positions with a tight stop-loss only if the stock of ONGC climbs above ₹80 levels

 

₹1446 • Reliance Ind.

S1

S2

R1

R2

COMMENT

1430

1412

1460

1475

Fresh long positions can be initiated with a tight stop-loss if the stock rebounds up from ₹1,430 levels

 

₹158 • SBI

S1

S2

R1

R2

COMMENT

153

149

164

169

Make use of intra-day dips to buy the stock while retaining a fixed stop-loss at ₹153 levels

 

₹2005 • TCS

S1

S2

R1

R2

COMMENT

1985

1965

2025

2045

Initiate fresh long positions with a stiff stop-loss only if the stock of TCS advances above ₹2,025 levels

 

9309 • Nifty 50 Futures

S1

S2

R1

R2

COMMENT

9230

9170

9370

9440

Fresh long positions can be initiated with a fixed stop-loss if the contract reverses higher from ₹9,230 levels

 

S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.

 

9:00 am

Today's Pick: Wipro (₹201.7): Buy

Wipro
 

The stock of Wipro jumped 6.8 per cent with above average volume, breaking above a vital resistance level of ₹196 on Wednesday. Investors with a short-term perspective can buy the stock at current levels.

Since recording a 52-week low at ₹159 in mid-March this year, the stock has been in a medium term uptrend. But, encountering a key resistance at ₹196 in early April, the stock was on a sideways movement in the band between ₹175 and ₹196 until recently.

With the recent 6.8-per cent jump, the stock has moved out of the sideways movement and appears to have resumed its medium-term uptrend. Click here to read in full Today's Pick on Wipro.

 

 

Published on May 28, 2020