Sensex surrenders gains, settles 63 points lower at 30,609

Closing bell

Equity benchmark Sensex gave up all the day’s gains to end 63 points lower on Tuesday as a spike in the number of Covid-19 cases in the country created uncertainty about lockdown measures going ahead.

After rallying 414.11 points in early session, the 30-share index declined 63.29 points or 0.21 per cent to 30,609.30.

Similarly, NSE Nifty ended 10.20 points or 0.11 per cent down at 9,029.05.

Bharti Airtel was the top loser in the Sensex pack, plunging around 6 per cent, followed by TCS, Bajaj Finance, Sun Pharma, Tech Mhindra, Infosys and Hero MotoCorp.

On the other hand, Titan, Ultratech Cement, IndusInd Bank, Nestle India and ITC were among the gainers.

“After opening up by more than 1 per cent, the benchmark indices pared gains to close flat, with a negative bias. However, global market cues were positive, on the back of additional stimulus measures and the slow reopening of economies globally,” Vinod Nair, Head of Research at Geojit Financial Services, said.

The unabated rise of infections in India, throws up further uncertainties with regards to extension of lockdown measures, he added.

The number of coronavirus cases in India climbed to 1,45,380 and the death toll touched 4,167, according to Health Ministry data.

Globally, the number of cases linked to the disease has crossed 54.95 lakh.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul ended significantly higher.

Stock exchanges in Europe too rallied up to 1.76 per cent in early deals.

International oil benchmark Brent crude futures were trading 1.58 per cent higher at $36.09 per barrel.

On the currency front, the rupee appreciated 29 paise to close at 75.66 against the US dollar. - PTI

Euro, riskier currencies buoyed as investor sentiment improves

The dollar was steady at $1.1001 per euro, just above a three week low, and headed for its biggest weekly loss on the single currency since last June. File Photo

The euro got a boost on Tuesday from a weaker dollar as growing optimism about a global recovery from the Covid-19 pandemic supported riskier currencies.

The moves, however, lacked the exuberance of the equities market as Sino-US tensions kept the mood in check.

The trade-sensitive Australian and New Zealand dollars each rose about 0.7 per cent, but remain below last week's highs. The Norwegian crown also rose nearly 1 per cent versus the US dollar. The Chinese yuan, a barometer of US-China relations, was mostly left behind by a rally in other Asian currencies. Click here to read in full the forex report.

European shares near 11-week high

File Photo

European shares hovered near a 11-week high on Tuesday, with UK markets surging after a long weekend, as businesses worldwide gradually reopened following a months-long lockdown.

The pan-European STOXX 600 rose 1.2 per cent, trading just below its March 10 high.

Returning from a bank holiday, UK's FTSE 100 surged 1.9 per cent as Prime Minister Boris Johnson said on Monday Britain will reopen thousands of high street shops, department stores and shopping centres next month. Click here to read more on the European markets.

Oil prices climb on growing hopes for output cuts

A big surge in demand is unlikely to materialise any time soon

Oil prices rose on Tuesday, supported by growing confidence in the market that producers will come good on commitments to cut crude supply while demand picks up with more cars back on the road as coronavirus lockdowns are eased around the world.

US West Texas Intermediate (WTI) crude futures gained 3.4 per cent, or $1.12, to $34.37 a barrel as of 0652 GMT, just off an intra-day high of $34.54. There was no WTI settlement on Monday because of the US Memorial Day holiday.

Brent crude futures were up nearly 1.7 per cent, or 61 cents to $36.14, adding to a 1.1 per cent gain on Monday in thin holiday trading. Click here to read more on the oil report .

Benchmark indices slip into red

The benchmark indices were trading in the red in the afternoon session on Tuesday.

The Sensex was at 30,555, down 116 points or 0.38 per cent lower, while the Nifty fell below the 9,000 level to 8,998, down 40 points or 0.45 per cent.

The top gainers on the Sensex were Titan, UltraTech Cement, Nestle India, NTPC and Tata Steel, while the laggards were Bharti Airtel, TCS, Bajaj Finance, Sun Pharma and Tech Mahindra.

Among the BSE sectoral indices, the telecom industry lost more than 4 per cent. The gainers were led by consumer durables and metals, both of which were up 2 per cent.

Nifty call: Sell on rallies with stop-loss at 9,200

A security guard walks past the logo of the National Stock Exchange (NSE) inside its building in Mumbai, India, May 28, 2019. REUTERS/Francis Mascarenhas

The Indian benchmark indices, after opening with a gap-up, have declined since the open. The Nifty spot and the Sensex spot indices are trading higher by a little over 0.5 per cent, after having rallied over one per cent each.

Both the indices gave up some of their gains despite positive cues from the Asian markets. While the Nikkei index posted a gain of 2.5 per cent today, the Hang Seng and Shanghai composite index have gained 2 per cent and 1 per cent, respectively. Click here to read more on the Nifty call.

TVS Motor implements temporary pay cuts for employees

TVS Motor Company has cut staff salaries by up to 20 per cent for a period of six months, beginning May, amid coronavirus pandemic. Click here to read more on the TVS Motor pay cut .

HDFC shares fall around 2 per cent after Q4 earnings

Shares of HDFC Ltd on Tuesday fell by nearly 2 per cent after the company reported a 10 per cent decline in consolidated net profit for the fourth quarter ended March 31.

On the BSE, the stocks declined 1.55 per cent to Rs 1,493. They fell 1.55 per cent to Rs 1,492.60 on the NSE.

The housing finance firm on Monday reported a 10 per cent decline in consolidated net profit to Rs 4,341.58 crore for the fourth quarter ended March 31. The company’s net profit (before adjustment of minority interest) was Rs 4,811.26 crore in the January-March quarter of 2018-19.

On standalone basis, HDFC’s profit during the quarter slipped by 22 per cent at Rs 2,232.55 crore as against Rs 2,861.58 crore in the same quarter of the previous fiscal.

“In the fourth quarter, the factors that impacted the result included extra provisioning due to COVID-19 requirements, dividend income was Rs 2 crore compared to Rs 537 crore last year, and profit on sale of investments was Rs 2 crore as against Rs 321 crore,” HDFC Ltd Vice-Chairman and CEO, Keki Mistry, said.

The market was closed on Monday for ‘Id-Ul-Fitr’. - PTI

JSPL shares zoom 10 per cent after strong Q4 results

The overall growth in the eight sectors in the April-December 2019-20 period was marginal at 0.2 per cent and reflects stagnation in infrastructure industry

Shares of Jindal Steel and Power Ltd (JSPL) on Tuesday rallied 10 per cent after the company reported a consolidated net profit of Rs 305.62 crore during the quarter ended March 31, 2020.

The stock advanced 9.95 per cent to Rs 106 on the BSE. On NSE, it jumped 9.93 per cent to Rs 106.20.

JSPL on Monday reported a consolidated net profit of Rs 305.62 crore during the quarter ended March 31, 2020.

The company had posted a net loss of Rs 2,713.34 crore in the year-ago quarter, JSPL said in a BSE filing. However, its total income during the quarter under review was lower at Rs 8,835.23 crore as against Rs 10,158.95 crore in the same period a year ago.

Total expenses stood at Rs 8,355.48 crore in the March 2020 quarter as compared to Rs 11,850.61 crore in the corresponding period of the preceding fiscal. - PTI

ITC shares jump nearly 5 per cent on Sunrise Foods deal

Shares of ITC on Tuesday gained nearly 5 per cent after the company said it will fully acquire spices manufacturer Sunrise Foods Private Ltd (SFPL).

The scrip rose by 4.61 per cent to Rs 194.95 on BSE, and 4.61 per cent to Rs 194.95 on NSE.

While the company did not disclose the value of the deal, sources said it is valued around Rs 1,800 crore to Rs 2,000 crore.

The company on Sunday said it has signed a share purchase agreement with SFPL, which will augment its product portfolio and is also aligned to its aspiration to significantly scale up its spices business and expand its footprint across the country.

“Sunrise is a clear market leader in eastern India in the fast-growing spices category, with a rich heritage and brand legacy of over 70 years,” ITC said in a statement.

The market was closed on Monday for ‘Id-Ul-Fitr’. - PTI

Japan shares scale 10-week peak, S&P 500 up sharply

Japan's Nikkei fell 1.7 per cent to its lowest since October. File Photo

Asian shares forged ahead on Tuesday while US stock futures breached a major chart barrier as investors brushed past Sino-US trade tensions to more stimulus in China and a re-opening world economy.

Japan's Nikkei took the lead with a rise of 1.7 per cent to its highest since early March when the economic impact of the coronavirus was just becoming clear.

MSCI's broadest index of Asia-Pacific shares outside Japan advanced 1.6 per cent, while South Korea rose 1.5 per cent.

E-Mini futures for the S&P 500 climbed 2 per cent to clear the 3,000 chart level. EUROSTOXX 50 futures added 0.98 per cent and FTSE futures 2.2 per cent. Chinese blue chips firmed 0.8 per cent after the country's central bank said it would strengthen economic policy and continue to push for lower interest rates on loans. Click here to read more on the Asian markets .

Now, brokers cannot use PoA to transfer client shares

Equity brokers may no longer be able to misuse client shares lying in demat accounts. From June 1, SEBI has discontinued the use of Power of Attorney (PoA) between a client and broker in the equity markets. This is the first major step that the regulator has taken after the multi-crore default by Karvy Stock Broking through misuse of PoA. Click here to read more .

Heat wave over North-West India augurs well for monsoon

Heat wave conditions over North-West, Central and adjoining East and Peninsular India, though delayed, is good news for the South-West monsoon, as it turns round the corner off the Somali coast in East Africa, and inches its way across the Arabian Sea towards Kerala.

https://www.thehindubusinessline.com/news/heat-wave-over-north-west-india-augurs-well-for-monsoon/article31676774.ece

Rupee surges 30 paise to 75.65 against  dollar in early trade

The rupee appreciated 30 paise to 75.65 against the US dollar in early trade on Tuesday, tracking a positive opening of domestic equities and weakness in the American currency.

Forex traders said a positive start of domestic stocks supported the local unit, while sustained foreign fund outflows and concerns over the coronavirus outbreak weighed on the local unit.

At the interbank foreign exchange market, the rupee opened at 75.69, then gained ground to touch 75.65, registering a rise of 30 paise over its previous close. Click here to read in full the rupee report .

Daily Rupee call: Rupee likely to descend 

The rupee (INR) posted a half per cent loss last week against the dollar (USD) as it ended the week at 75.95 versus the preceding week’s close of 75.57.

Today, the Indian currency opened at 75.69, about 0.35 per cent higher against Friday’s close. A further rally will face a hurdle at 75.6. This level is critical, a breakout of which can result in a sharp rally. But if the rupee weakens from the current level, the nearest supports are at 75.8 and 76. Click here to read more on the daily rupee call report.

Sensex, Nifty up nearly 1 per cent

The Sensex was up 289 points or 0.94 per cent at 30,961 in morning trade on Tuesday. The Nifty was at 9,128, up 89 points or 0.99 per cent higher.

The top gainers on the Sensex were Titan, UltraTech Cement, IndusInd Bank, HDFC Bank and L&T, while the laggards were Bharti Airtel, HeroMoto Corp, TCS, Bajaj Finance and Reliance.

Among the BSE sectoral indices, consumer durables, capital goods, metals, basic materials and power rode up over 2 per cent, while telecom was down nearly 3 per cent.

According to an agency report, Sensex rallied over 400 points in early trade on Tuesday led by gains in index-heavyweights HDFC twins, ITC and Reliance Industries amid positive cues from global markets.

Similarly, NSE Nifty surged 108.70 points or 1.20 per cent to 9,147.95.

In the previous session on Friday, the BSE barometer ended 260.31 points or 0.84 per cent lower at 30,672.59, while the broader Nifty settled 67 points or 0.74 per cent down at 9,039.25.

Foreign portfolio investors offloaded equities worth Rs 1,353.90 crore in the capital market on Friday, provisional exchange data showed.

Markets were closed on Monday for ‘Id-Ul-Fitr’

Besides stock-specific action, domestic investors were enthused by positive cues from global markets as lockdown restrictions eased world over, traders said.

According to Ajit Mishra, VP - Research, Religare Broking, markets may see some respite this week due to oversold positions, especially in the banking space, but sustainability would be tough at the higher levels.

Further, volatility will prevail as COVID-19 cases spike in the country, he added.

The number of coronavirus cases in India climbed to 1,45,380 and the death toll touched 4,167, as per Health Ministry data.

Globally, the number of cases linked to the disease has crossed 54.95 lakh. Bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading significantly higher. International oil benchmark Brent crude futures were trading 1.29 per cent higher at $35.99 per barrel. - PTI

Dollar dips as virus recovery optimism holds

The dollar inched lower on Tuesday as growing optimism about a global recovery from the Covid-19 pandemic supported riskier currencies, though concerns about United States (US)-China tensions held further moves in check.

After a quiet start to the week due to holidays in Britain and the United States, the greenback was a fraction softer against most Asian currencies.

Against a basket of currencies the dollar was roughly where it ended last week, holding at 99.692. The Japanese yen fetched 107.79 per dollar. Click here to read more on the dollar report .

ITC, IndusInd Bank, Titan and HDFC bank are currently in the green, while Bharti Airtel, Hero Motor, TCS in the red. ITC is up 4.19 per cent, making it the top gainer in the early trading session. Meanwhile, Bharti Airtel (down 3.84 per cent) is the top loser so far.

The long term outlook remains negative for Hindalco Industries (Rs 124.85), though in the short-term the stock may make positive strides. The stock finds an immediate support at Rs 103 and the major one at Rs 88 while immediate resistance appears at Rs 150 and move past that level has the potential to lift Hindalco towards Rs 182. The stock is now ruling at a crucial level. A conclusive close above Rs 128 could tilt the bias towards bulls. We expect Hindalco to move in a positive zone in the near term.

For more:

Oil prices rose on clear signs that producers are sticking to commitments to cut crude supply, even as more vehicles got back on the road with coronavirus lockdowns easing around the world.

United States WTI crude futures gained 2.3 per cent, or 75 cents, to $34.00 as of 0057 GMT. Brent crude futures inched up 0.7 per cent, or 23 cents to $35.76, adding to a 1.1 per cent gain on Monday in thin holiday trading.

Indian indices opened on a positive note today. The Sensex rallied 373.67 points to 31,046.26 in opening session, while the Nifty jumped 108.70 points to 9,147.95.

Today's pick:Gujarat Pipavav Port

The short-term outlook is bullish for the stock of Gujarat Pipavav Port. It has potential to trend upwards and reach the price targets of Rs. 66 and Rs. 68 in the coming trading sessions. Traders can buy the stock with a stop-loss at Rs. 61.

Here's the Day trading Guide for the day

₹838 • HDFC Bank

₹692 • Infosys

₹186 • ITC

₹76 • ONGC

₹1431 • Reliance Ind.

₹150 • SBI

₹2018 • TCS

9027 • Nifty 50 Futures

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