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Krishna Institute reported a net profit of Rs. 79 Cr.
Commodities, Currency, Equities, Market News, Markets - May 24, 2020

Weekly market update (18th May - 22th May).

Weekly market update (18th May – 22th May).

Overall performance:

 Fluctuation was seen in market due to many reasons such as resurgence trade tensions between China and US, rate cut by RBI and disappointing reaction for stimulus packages. On  18th May, SENSEX opened at 31,097.73 and closed at 30,028.98 (down by 1,068.75) while, on Friday market closed at 30,672.59 down by 425.14 points or 1.367 percent compared to opening price on Monday. On the other hand, NIFTY touched low at 8,800 during mid-week.

On Monday, NIFTY opened at 9,136.85 and closed at 9,039.25 on Friday lower by 97.6 points or 1.06 percent. However, the S&P BSE small-cap index increased by 10% to 30%. Around 30 stocks increased in small cap which includes Zen Technologies, Alok industries, Sintex Industries, Prozone Intu Properties Ltd and India cements. While, NIFTYBANK declined by more than 8%.

 

Global indices, currencies and commodities:

DAX was trading at 10,749.56, up by 287.16 points or 2.74%, on Monday while today it is trading at 11,073.87 up by 7.94 points and NASDAQ was trading at 9,014.56 up by 70.84 points or 0.79% while now it is trading at 9,324.59, up by 39.71. CAC was trading at 4,366.26, up by 2.07% or 88.63 points, now trading at 4,444.56, down by 0.89 points.

When market closed on Monday, Gold was trading at 47,858 up by 489 points and is now trading at 47,056. Silver was trading at 48,552 and is currently trading at 48,338, up by 1,003 points. On Monday, at the time of closing of Indian indices, USD was trading at Rs 75.91 which is now trading at Rs 75.95. EURO was trading at Rs 82.20, currently trading at Rs 82.79 and GBP was trading at Rs 92.19 which is now trading at Rs 92.58.

 

Sector wise update:

On Friday, NIFTY BANK decreased by 456.20 points or 2.57%, closing at 17,278.90 which was trading around 18,529 on Monday. While other sectors like Pharma and Auto sectors increased around 2%-5%.

 

Top 5 gainers:

This week, share price of ITC increased by 13.18% or by 21.70 points, closing at Rs 186.35, Cipla gained 69.05 points or by 12.11%, closing at Rs 639.3. Shares of Mahindra and Mahindra jumped by 11.81 percent or 45.05 points, closing at Rs 426.35. Bharti Airtel’s share price increased by 39.10 points or 7.06 percent, closing at Rs 593.20 this week, and share price of TCS gained 127.45 points or 11 percent this week and closed at Rs 2,020.35.

 

Top 5 losers:

Mahindra & Mahindra Financial Services share price fell by 6.31 percent or by 8.60 points and closed at Rs 127.60. This week, share price of Shriram Transport Finance decreased by 5.78 percent or 33.20 points, closing at Rs 541.40. Axis Bank fell by 5.65 % or 20.20 points, closing at Rs 337.10. Ashok Leyland shares declined by 5.42 percent or 2.50 points, closing at Rs 43.60 and share price of Power Finance Corp declined by 5.31% or 4.20 points and closed at Rs 74.90 on Friday.

 

Which stocks were in news?

This week, various companies were scheduled to announce their March quarter earnings. This is includes companies such as D-mart (Avenue Supermart), JSW steel, DCB Bank, Alembic Pharma, Bosch, Colgate, Bayer cropscein, UPL, Birla Corp, IDFC first Bank, JSW steel, Bajaj Auto, Cipla and Bharti Airtel. Among these companies, many posted loss for Q4 FY20 which affected their shares. Many stocks from Pharma and Auto sector were also in news as share prices of auto companies such as M&M and Hero MotoCorp increased by 2% to 6%. While, Pharma companies stocks such as Cipla and Dr Reddys labs increased by 4%-10%.

Most active stock by volume were Vodafone Idea, SBI, HUL and Maruti Suzuki, Reliance Power, Axis bank, Yes bank, Tata Power, India Bulls and Bharat Electronics. On Friday, around 31 stocks touched their 52 week low which includes Bajaj Finance, Chennai Petroleum Corporation, SBI, ABB, India Bulls, Cyient, The Karnataka Bank and Power Finance Corporation. IRCTC was in news as bookings for passenger trains started and their shares are increasing and again locked in 5% upper circuit (for 2nd time). On Friday their shares gained 22.70 points, closing at Rs 1,422.70.

 

 

Airport Authority of India provides new air travel guidelines.

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Devyani International Q1 FY26 Results: Revenue Growth Amid Profit Challenges
Commodities, Currency, Equities, Market News, Markets - May 22, 2020

Market update 22nd May 2020. Financials dip after RBI's announcement.

Market update 22nd May 2020. Financials dip after RBI’s announcement.

 

Overall performance:

Indian indices ended on low note today, mostly dragged by banking and financial sector stocks. When market closed, SENSEX was down by 260.31 points or 0.84%, closing at 30,672.59 and NIFTY was down by 67 points or 0.74%, closing at 9,039.25. While, the S&P BSE midcap index was down by 93.82 points or 0.83%, closing at 11,270.02. S&P BSE Small cap decreased by 23.90 points or 0.23%, closing at 10,524.23. NIFTY Midcap 100 closed at 12,668.05, down by 94.60 points or 0.74%, closing at 12,668.05 and NIFTY Small cap 100 closed at 3,850.85, down by 24.35 points or 0.63%.

 

Global indices and commodities:

When Indian market closed, DAX was trading at 11,016.77 down by 49.16 points or 0.44%. NASDAQ was trading at 9,284.88 down by 90.90 points or 0.97% and CAC was trading at 4,435.93, down by 0.21% or 9.52 points. While, SGX Nifty was down by 45.50 points or 0.50% and trading at 9,035.50. Currently, Gold is trading at 46,965 up by 577 points and 1.24%. Silver is trading at 47,719 up by 415 points and 0.88%. Crude oil is trading at 2,424 which is declined by 139 points and 5.42%.

 

Currency:

At the closing time of Indian indices, USD was trading at Rs 75.95, up by 0.34%. EURO was trading at Rs 82.69, down by 0.11% and GBP was trading at Rs 92.32, down by 0.10%.

 

Sector:

Among the sectors, IT, Auto, Pharma and media sector ended on high note but banking and financial sector ended on low note. The S&P BSE Auto index increased by 48.79 points while, S&P BSE Energy declined by 18.29 points or 0.41%,.BSE BANKEX fell by 497.17 points or 2.44%. At closing, NIFTY BANK decreased by 456.20 points or 2.57%, closing at 17,278.90 while, NIFTY IT increased by 194.75 points or 1.43%, closing at 13,842.65.

 

Top 5 gainers:

Today, share price of Zee Entertainment increased by 9.30 points or 6.04%, closing at Rs 163.25. Mahindra & Mahindra which is increasing from the last few days, gained 18.05 points or 4.42% and closed at Rs 426.35. Shares of Cipla increased by 22.75 points or 3.69%, closing at Rs 639.35. Shree Cements increased by 659.10 points or 3.42%, closing at Rs 19,910.25 and Infosys was up by 20.15 points or 3% and closed at Rs 692.35.

 

Top 5 losers:

Today, shares which declined the most were from the banking or finance sector. Axis bank declined by 20.25 points or 5.67%, closing at Rs 336.95. HDFC shares declined by 5.08% or 81.15 points, closing at Rs 1,516.15. Bajaj Finserv decreased by 223.65 points or by 4.93%, closing at Rs 4,315.55. Share price of Bajaj finance fell by 94.90 points or 4.77%, closing at Rs 1,895.30 and ICICI Bank declined by 13.35 points or 4.39%, closing at Rs 291.05.

 

Stock in news:

Shares of Pharma and Auto sectors ended on high note. IRCTC was in news after booking for passenger trains started their shares are increasing. Today it increased by 22.70 points, closing at Rs 1422.70. Today, around 31 stocks touched their 52 week low which includes Bajaj Finance, Chennai Petroleum Corporation, SBI, ABB, India bulls, Cyient, The Karnataka Bank and Power Finance Corporation.

Zee entertainment was in news as share price of the company increased by 6.04 percent and closed at Rs 163.25. Also, Mahindra & Mahindra gained 4.42%, closing at Rs 426.35 . Other than these stocks, most active stocks in terms of volume were Vodafone idea, SBI, ICICI Bank, BHEL, Bank of Baroda, Axis Bank and IDFC First Bank in terms of volume.

 

 

Airport Authority of India provides new air travel guidelines.

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Shaping the Future: Key Trends in the Hospitality Industry
Business, Economy - May 22, 2020

Airport Authority of India provides new air travel guidelines.

Airport Authority of India provides new air travel guidelines.

 

The Minister of Civil Aviation has declared that domestic air operations will start in a structured format starting from 25th May. The Airport Authority of India (AAI) has released new guidance until the nation resumes air services. Stringent sanitation standards will be implemented at all airports while the airplanes restart all around the country. These instructions are provided by the Ministry of Aviation and is to be practiced by travelers beginning from 25th May during their journeys.

 

Guidelines to be followed:

1. Social distancing and minimal contact is to be maintained.

2. Sensitive individuals such as people with sickness, elderly, and pregnant women, are recommended to avoid traveling. A traveller should not travel if he/she is in containment zone. The traveller should not travel if he/she is tested positive for COVID-19. Passengers will have to wear a mask throughout the journey.

3. If a traveller is not allowed to air travel, he / she will be liable for penal charges.

4. Travellers should give the following declarations:

-I / we are not staying in a containment zone.

-I / we are not experiencing any coughing, fever or breathing difficulties.

-I / we are was never under quarantine.

-If I / we develop any of those mentioned symptoms, should notify the health department immediately.

-I / we have not tested positive for COVID-19.

-I / we are eligible to travel as per the extant standards.

-If needed, I / we should make the mobile number accessible to the airline.

-I agree that if I were to fly by air without satisfying the eligibility criteria, I will be subject to penal charges.

5. Airlines need to ensure that the border pass is provided only when the passenger has confirmed the above declarations.

6. Passengers should arrive at the airport according to the updated arrival period of 2 hours before departure.

7. All departing travellers should be registered with the ‘Aarogya Setu’ App on their cell phones and reviewed by CISFI Airport workers at the entrance gate. Also, Aarogya Setu is not compulsory for children under 14 years of age. If the app is not available, the passenger will be required to go to the counter at which the Aarogya Setu app is available for download.

8. For travellers and employees travelling from and to the airport, either private cars or selected approved taxi services with limited seating is allowed. Travellers must get down from the vehicles with mask, gloves and necessary documents.

9. Travelers will have to walk via the Thermal Scanning Zone at a particular location in the city side before accessing the terminals.

10. Travellers should test their temperature and show the status of the Aarogya Setu application to the employees at the entrance gate.

11. Traveller to display his / her identity, the boarding pass at the entry gate to the CIFS workers

12. The traveller should be given an electronic receipt.

13. Travellers to complete check-in and luggage drop at least 60 minutes prior to departure.

14. Passengers should follow the directions suggested by the authorities to remove all metals on the body to enable security checking.

15. To make sure that social distancing is followed, marks such as triangles, squares will be given across the cart selection of luggage to facilitate social distancing.

16. Limitation on baggage – Only one check-in luggage and one cabin suitcase is allowed.

17. Passengers should be responsible for their own protection by following the health and security directions. Hand sanitizers for travellers and airport personnel at different locations will be made available by the airport operators.

18. While waiting in the security hold zone, travellers must maintain social distancing and sanitization.

19. Usage of trolleys in departure and arrival field will not be allowed. Although, specifying a few travellers needing a trolley for a genuine reason, will be given on request.

20. Airport authorities should make sufficient provisions for the sanitation of luggages.

21. Plexiglass will be used for security test counters and check-in.

22. Passenger seats at airports should be configured in such a way as to preserve the social distancing measures between passengers by utilizing chairs and covering certain seats which will not be utilized, with appropriate identifying marks/tapes.

23. In compliance with the guidelines provided by the Ministry of Health and Family Welfare (MOHFW), all airport personnels managing the airplane should be supplied with hand sanitizers and other necessary safety equipment like face masks, etc.

24. Passengers will need to do a web check-in and then will get a boarding pass.

25. Travellers will have to download the luggage label, print it, and affix that to the luggage in a significant place. If the traveller is unable to print the luggage tag, he/she must note the PNR and the traveller name on paper and affix it to a strong string.

26. Magazines and newspapers will not be made available in lounges and terminal buildings.

27. Wherever feasible, open-air ventilation in airports will be used rather than air conditioning systems.

28. Chairs labelled “Not for use” should not be used

29. Travellers should be aware of social distancing and preserve hygiene when going to F&B, retail stores, etc.

30. The whole terminal disinfection with legally registered disinfectants should be done by spraying disinfectants or by physical cleanings at periodic times.

31. The airport operator must maintain cleanliness and hygiene in all buildings, nooks and corners and public spaces, like restrooms, railings, tables, shelves, escalators, walls, ramps, trolleys etc., to be completed prior the flight arrives and after the last person exits the terminal.

32. Travellers must dispose of all bio hazardous items such as used gloves, masks, tissues, etc, in a yellow disposable bin situated at a convenient place in the airport.

33. Travellers should be pay attention to the different communication materials shown at the airport on the numerous safety advisories related to pre-boarding and during flight precautions.

34. Throughout the aircraft, passengers will observe hygiene and sanitation. Face-to-face engagement should be limited.

35. Travellers to minimize the use of toilets and avoid any activity which is not necessary.

36. No queuing outside the bathroom and one person to aid the kids and seniors citizens will be allowed.

37. No food will be served on the airplane. Bottle of water will be made accessible in the galley area or on the chair.

38. When the traveller is feeling uneasy or suffering from renal distress, it should be immediately notified to the crew.

39. The airlines will disembark passengers in a sequential manner.

40. Trolley to be used sparingly in the arrival area.

41. Travellers to wait in the luggage hold area until the luggage arrives in batches.

42. Passenger travel will not be allowed to leave the transit zone.

43. Daily disinfection should be done at the pick-up taxi and drop off locations outside the airports.

44. Upon arrival at the airport, travellers must comply with the safety guidelines specified by the destination state / Union Terriority.

 

 

FPIs exit markets after economic package announcement.

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Aarti Industries Ltd Q1 FY23 Result Updates.
Commodities, Currency, Equities, Market News, Markets - May 21, 2020

Market update 21st May 2020. ITC record biggest one-day gain in nearly 2 months.

Market update 21st May 2020. ITC record biggest one-day gain in nearly 2 months.

 

Overall performance:

Indian indices ended on high note. While market closed, SENSEX was up by 114.29 points or 0.37%, closing at 30,932.90 and NIFTY was up by 39.70 points or 0.44%, closing at 9,106.25. While, the S&P BSE midcap index was up by 85.62 points or 0.76%, closing at 11,363.84 and S&P BSE Small cap increased by 75.76 points or 0.72%, closing at 10,548.13 NIFTY Midcap 100 closed at 12,762.65, up by 98.45 points or 0.78% and NIFTY Small cap 100 closed at 3,875.20, up by 23.45 points or 0.61%.

 

Global indices and commodities:

When Indian market closed, DAX was trading at 11,067.85 down by 155.86 points or 1.39%. NASDAQ was trading at 9,375.78 up by 190.68 points or 2.08% and CAC was trading at 4,452.40, down by 0.99% or 44.58 points. While, SGX Nifty was down by 18.50 points or 0.20% and trading at 9,064.50. Currently, Gold is trading at 46,692 down by 451 points and 0.96%. Silver is trading at 48,101 down by 957 points and 1.95%. Crude oil is trading at 2,604 which is up by 84 points and 3.33%.

 

Currency:

At the closing time of Indian indices, almost all the currencies were trading at a lower note. USD was trading at Rs 75.60, down by 0.25%. EURO was trading at Rs 82.84, down by 0.11% and GBP was trading at Rs 92.38, down by 0.10%.

 

Sector:

Today, almost all other sectors ended on higher note, expect for the banking sector. The S&P BSE Auto index increased by 311.34 points or by 2.45% and S&P BSE Energy gained 22.61 points or 0.51% while BSE CDGS increased by 2.09%. At closing, NIFTY BANK decreased by 105.10 points or 0.59%, closing at 17,735.10 and NIFTY IT and AUTO increased by 130.55 points and 146.10 points respectively.

 

Top 5 gainers:

Share price of ITC increased by 13.20 points or 7.51%, closing at Rs 188.95. Hindalco gained 129.50 points or 7.20% and closed at Rs 129.50. Asian paints increased by 74.25 points or 4.95%, closing at Rs 1,574.30. Hero MotoCorp increased by 95.90 points or 4.74%, closing at Rs 2,119.50 and Maruti Suzuki was up by 158.15 points or 3.23% and closed at Rs 5,050.10.

 

Top 5 losers:

Bajaj Finserv declined by 162.85 points or 3.46%, closing at Rs 4,539.20. IndusInd bank which is declining from the last few days, declined by 2.94% or 10.50 points, closing at Rs 346.80. NTPC decreased by 2.65 points or by 2.85%, closing at Rs 90.25. Share price of Bajaj Finance fell by 52.60 points or 2.57%, closing at Rs 1,990.20 and Adani ports declined by 6.60 points or 2.04%, closing at Rs 317.15.

 

Stock in news:

Hero MotoCorp was in news as share price of the company increased by 95.90 points and closed at Rs 2,119.50. Also, IRCTC locked in upper circuit at 5% for the second day, closing at Rs 1,400 after bookings for passenger train started. Other than these stocks, most active stocks were Vodafone idea, SBI, ITC, Bank of Baroda, ICICI Bank and Alok Leyland in terms of volume.

 

 

Market update 20th May 2020. SENSEX, NIFTY close on a positive note.

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Avenue Supermarts Shares Jump 4% as New Store Openings Boost Growth Prospects
Commodities, Currency, Equities, Market News, Markets - May 20, 2020

Market update 20th May 2020. SENSEX, NIFTY close on a positive note.

Market update 20th May 2020. SENSEX, NIFTY close on a positive note.

 

Overall performance:

Today, for the second consecutive day Indian indices ended on a high note. As market closed, SENSEX was up by 622.44 points or 2.06%, closing at 30,818.61 and NIFTY was up by 187.45 points or 2.11%, closing at 9,066.55 While, the S&P BSE midcap index was up by 166.09 points or 1.49%, closing at 11,278.22 and S&P BSE Small cap increased by 117.19 points or 1.13%, closing at 10,472.37. NIFTY Midcap 100 closed at 12,664.20, up by 193.50 points or 1.55% and NIFTY Small cap 100 closed at 3,851.75, up by 39.80 points or 1.04%.

 

Global indices and commodities:

When Indian market closed, DAX was trading at 11,136.49 up by 61.20 points or 0.55%, NASDAQ was trading at 9,185.10 down by 49.73 points or 0.54% and CAC was trading at 4,452.75, down by 0.12% or 5.41 points. While, SGX Nifty was up by 259 points or 2.94% and trading at 9,083.00. Currently, Gold is trading at 47,203 up by 153 points and 0.33%, Silver is trading at 49,045 up by 227 points and 0.46%. Crude oil is trading at 2,442 which is up by 40 points and 1.67%.

 

Currency:

At the time of closing of Indian indices, USD was trading at Rs 75.79, up by 0.21%. EURO was trading at Rs 82.80, up by 0.22% and GBP was trading at Rs 92.79, up by 0.13%.

 

Sector:

Today, almost all other sectors ended on a high note. The S&P BSE Auto index rose by 258.63 points and S&P BSE Energy rose by 84.07 points or 1.93%. At closing, NIFTY BANK increased by 353.95 points or 2.02%, closing at 17,840.20 while, NIFTY IT increased by 70.80 points or 0.53%.

 

Top 5 gainers:

Share price of Shree Cements increased by 1,070.90 points or 5.84%, closing at Rs 19,411.65. Mahindra & Mahindra gained 22.15 points or 5.78% and closed at Rs 405.05. Shares of Dr Reddys Labs increased by 210.60 points or 5.69%, closing at Rs 3,910.20. HDFC gained 87.15 points or 5.66%, closing at Rs 1,627 and Eicher Motors was up by 708.90 points or 5.47% and closed at Rs 13,675.10.

 

Top 5 losers:

Today, Bharti Infratel declined by 17.90 points or 8.18%, closing at Rs 200.85. Vedanta, which is decreasing from last 2 days, declined by 1.61% or 1.45 points, closing at Rs 88.55, IndusInd bank decreased by 10.50 points or by 2.85%, closing at Rs 357.30. Share price of Hero MotoCorp fell by 49.90 points or 2.41%, closing at Rs 2,023.60 and Bharti Airtel declined by 4.75 points or 0.79%, closing at Rs 594.05.

 

Stock in news:

Today, shares of Pharma, banking and Auto sectors ended on higher note. Shree cements was in news as share price of the company increased by 1,070.90 points and closed at Rs 19,411.65. Bharti Infratel was also in news as today their share price decreased more than 8%, closing at Rs 200.85 and Mahindra and Mahindra shares which was declining since last few days, today gained 22.15 points. Other than these stocks, most active stocks were Vodafone idea, SBI, Tata powers, ICICI Bank, BHEL and Alok Industries in terms of volume.

 

 

FPIs exit markets after economic package announcement.

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Equity Rght
Business, Market News, Markets - May 19, 2020

BSE, NSE cut listing fees for SMEs

BSE, NSE cut listing fees for SMEs

 

Due to COVID-19 pandemic, all the sectors have been affected badly but SMEs segments are affected the most. Therefore, during the announcements of details of Rs 20 lakh crore stimulus package, Finance minister Nirmala Sitharaman made special announcements related to MSMEs.

 

Reduction in listing fees:

Now to support SMEs and MSMEs, Indian stock exchanges BSE and NSE came forward. They have relaxed listing norms and reduced listing fee for small and medium enterprises by 25%. However, this norms are applicable to both existing and new firms which are looking forward to list on BSE SME platform and NSE SME platform.

 

What are the Current charges?

Currently for SMEs, Rs 25,000 or 0.1 percent of market capitalization of firm is the listing fee charged by BSE. The NSE charges around Rs 10,000 to Rs 45,000, depending on the SME firms market capitalization. Until now, BSE has 322 small and medium companies listed and has raised around Rs 3,278.84 crore from the market. Their market capitalisation is of Rs 15,865.39 crore so far. On the other side, so far only 209 small and medium companies are listed on NSE and have raised over Rs 3,200 crore.

 

What measures have been announced by government?

Due to the covid-19 lock down, many industries are facing problems like job losses and are cash strapped. During this situation, the main concern for MSMEs is that they are not able to restart their operations due to supply issues and non-availability of labour. Last week, while making announcement for packages in tranches, government changed the definition for MSMEs and linked it to the turnover limits of the companies so that their businesses grow with benefits. They announced measures for MSMEs and Rs 3 lakh crore package for collateral free automatic loans with separate funds for equity support.

However, these Rs 3 lakh crore will also be useful for existing borrowers who have over Rs 100 crore turnover and Rs 25 crore outstanding. Fresh loans can be taken by companies up to 20% of their outstanding. These loans have tenure of 4 years, with moratorium repayment period of 12 months. However, the government will also give them credit guarantee of 100 percent which will cover interest and principal to banking and non-banking institutions. Government will give around Rs 4,000 crore funds to Credit Guarantee Fund Trust for Micro and Small Enterprises (CGFTMSE) with partial credit guarantee to banks. However for expansion of MSMEs, the government will provide corpus of Rs 10,000 crore so that they can also list after expansion.

 

Further Expectations:

Micro, small and medium enterprises (MSMEs) are very cautious while taking any kind of fresh loans, as they are not sure about the demands for their products after all activity resumes. Most of the micro, small and medium businesses and enterprises are expecting from the government, to give them direct relief by waiving their electricity bills and other fixed expenditure such as payment of salaries. However, banks have already reduced their loans such as credit limit. Anil Bhardwaj, Secretary general of federation of Indian micro, small & medium enterprises (FISME) said, for all the small business and enterprises, government will take care of their fixed expenses. MSME industry has three major demand, interest payments, easy access to loans and payments of salaries from the government, during this situation due to COVID-19 lock down.

 

 

FPIs exit markets after economic package announcement.

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Godha Cabcon & Insulation Reports Q1 2026 Results
Economy, Market News, Markets - May 19, 2020

FPIs exit markets after economic package announcement.

FPIs exit markets after economic package announcement.

 

On 12th May 2020, Prime Minister Narendra Modi announced an economic package of ₹ 20 lakh crore under government’s Atma Nirbhar Bharat Abhiyan / Self-Reliant India. The national movement of Atma Nirbhar Bharat Abhiyan / Self-Reliant India initiated by Prime Minister Narendra Modi is to support India’s all small and local business. He emphasized on slogan viz. #VOCALFORLOCAL.

 

Scamper among FPIs:

Approximately 40% of FPI sales in cash and derivatives sectors were observed in second week of May. The data derived from stock exchange indicates some break up figures such as FPI’s sold stock worth ₹6,486 crore. Additionally, sales worth ₹2,869 crore and ₹737 crore were observed in index futures and stock futures respectively. These sales was executed in just 4 trading days in the second week of May 2020. The data further states that since the announcement of economic booster package of worth ₹20 lakh crore, FPIs buying activity has drastically declined.

 

Decline in NIFTY:

On 13th May 2020, Nifty observed its peak of 9,584 within the span of 2 days. Nifty abruptly fell by 534 points and on 15th May 2020 Nifty observed its low of 9,050. In the same time period, it has also been observed that there is a sudden decline in Nifty Bank. Nifty Bank dropped 1,440 points from 20,122 to 18,663.

If we compare between Indian stock market and global stock market, the sudden change is only observed in Indian stock market and not in global stock market. The Nifty and Nifty Bank indices are two of India’s largest traded derivatives, and both of these derivatives are struggling under pressure from FPI’s as they are selling their investment in a massive quantity since the announcement of economic booster package by Indian government. In second week of May 2020, the indices decreased by 5.6% and 7.15% respectively, compared to their respective highs.

 

Support from DII’s:

During the same period i.e. in the second week of May, there was no support from Domestic institutional investors (DIIs). Purchases from domestic institutional investors (DIIs) was also low, and they purchased stocks of only ₹1,896 crore in cash. There are several rules and restrictions on the companies who are doing business of mutual funds & insurance on derivative speculations. Therefore, they are virtually absent in the field of futures and options.

 

Massive sales by FPIs:

The media report noted that FPIs have been selling massively since the second week of May 2020 and have been slamming markets after the announcement of the financial package by Indian Government. In addition, the figures apart from second week of May 2020, the FPI’s net figures appear to be clearly positive, this is a bit misleading.

 

Loopholes while extracting data:

Exchanges will not adapt these facts when foreign companies sell shares and FPIs buy them This was the case on 7th May 2020, when a massive block of shares entered the market of Hindustan Unilever (HUL). Shares of HUL worth ₹26,300 crore were sold by international investors on 7th May 2020. The FPI’s bought a total worth ₹19,000 crore from the market in the same period, while DIIs bought stocks from the market in the same period worth ₹3,818 crore. Nearly all FPI’s and DIIs purchases were in HUL for that particular period.

When these ₹19,000 crore investments are removed from Hindustan Unilever shares, then FPI’s were net sellers in the cash and future segments. Sellers and major buyers of HUL were both international entities, but only those registered as FPIs are required to report their numbers to Securities and Exchange Board of India (SEBI) and stock exchanges viz. NSE & BSE. Meanwhile, net buying by DIIs in the month of May 2020 is just ₹1,056 crore after adjusting the activity of Hindustan Unilever.

 

 

Corporate bond funds: A mix of risks and returns.

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India Inc: Navigating a Challenging Q2 with Resilience in ROCE
Equities - May 19, 2020

Market update 19th May 2020. Vodafone Idea rises 17%

Market update 19th May 2020. Vodafone Idea rises 17%

 

Overall performance:

After 3 days, Indian indices ended on higher note. However, NIFTY did not cross the 8,900 mark. After market closed, SENSEX was up by 167.19 points or 0.56%, closing at 30,196.17 and NIFTY was up by 55.85 points or 0.63%, closing at 8,879.10 While, the S&P BSE midcap index was up by 56.96 points or 0.52%, closing at 11,112.13 and S&P BSE Small cap declined by 21.13 points or 0.20%, closing at 10,355.18 NIFTY Midcap 100 closed at 12,471.15, up by 61.80 points or 0.50% and NIFTY Small cap 100 closed at 3,811.95, up by 7.05 points or 0.19%.

 

Global indices and commodity:

When Indian market closed, DAX was trading at 10,975.92, down by 76.266 points or 0.69%, NASDAQ was trading at 9,234.83 up by 220.27 points or 2.44% and CAC was trading at 4,447.57, down by 1.13% or 50.77 points. While, SGX Nifty was up by 42.50 points or 0.48% and trading at 8,828.00 Currently, Gold is trading at 46,718 up by 56 points and 0.12%, Silver is trading at 47,520 down by 182 points and 0.38%. Crude oil is trading at 2,401 which is down by 1.00 points and 0.04%.

 

Currency:

At the closing time of Indian indices, USD was trading at Rs 75.64, down by 0.36%. EURO was trading at Rs 82.82, up by 0.29% and GBP was trading at Rs 92.49, up by 0.23%.

 

Sector:

Today, other than banking sector, all other sectors ended on a higher note. The S&P BSE Auto index increased by 144.11 points and S&P BSE IT gained 100.68 points or 0.75% At closing, NIFTY BANK fell by 86.95 points or 0.49%, closing at 17,486.25. While, NIFTY IT increased by 132.20 points or 0.99%.

 

Top 5 gainers:

Share price of Bharti Airtel increased by 60.75 points or 11.29%, closing at Rs 598.80, Adani Ports gained 25.90 points or 8.83% and closed at Rs 319.20. ONGC increased by 4.25 points or 5.83%, closing at Rs 77.15. Bharti Infratel gained 11.65 points or 5.63%, closing at Rs 218.75 and UltraTechCement which is increasing from two consecutive days, was up by 130.35 points or 3.94% and closed at Rs 3438.15.

 

Top 5 losers:

Today, UPL declined by 36.15 points or 9.62%, closing at Rs 339.65. Vedanta fell by 2.70% or 2.50 points, closing at Rs 90, Induslnd bank decreased by 8.95 points or by 2.38%, closing at Rs 367.80. Share price of Reliance fell by 31.85 points or 2.21%, closing at Rs 1408.90 and Larsen declined by 17 points or 2.09%, closing at Rs 796.35.

 

Stock in news:

UPL was in news as share price of the company fell around 10%, even after the market ended on higher note today and closed at Rs 339.65. Bharti Airtel was also in news as today their share price increased by more than 11%, closing at Rs 598.80. Other than these stocks, most active stocks were Vodafone idea, SBI, Tata motors, ICICI Bank, BHEL and Bank of Baroda in terms of volume.

 

 

Fifth tranche of economic package covers MNREGA, Health and more.

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Economy - May 18, 2020

Fifth tranche of economic package covers MNREGA, Health and more.

Fifth tranche of economic package covers MNREGA, Health and more.

 

Finance Minister Nirmala Sitharaman, on May 17, 2020 announced the 5th and concluding tranche of the economic package. In order to make India “Atma Nirbhar”, the last tranche of the economic package emphasizes on land, labour, liquidity and laws. The focus is on 7 things including, Health and Education related sector, Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), businesses and COVID-19, ease of doing business, decriminalization of Companies Act, Public Sector Enterprises- related points and State Governments and related resources.

The 1st tranche was announced on May 13, 2020 following the 2nd, 3rd and 4th tranche on May 14, 15 and 16. All the 5 tranches sums up the detailed guidelines and strategy of allocation of total fund as announced earlier by Prime Minister Narendra Modi. This pool of the Rs 20 lakh crore package, that amounts to 10 percent of our GDP aims to help Nation survive the economic crisis that has arisen due to cross country lockdowns laid to curtail spread of COVID-19.

 

Let’s have a look at the 7 points as aired on May 17, 2020:

Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA):

The government has planned to increase the budgeted estimate by Rs 40,000 crore. Previously, the budgeted estimate for the same was Rs 61,000 crore. This increase is estimated to generate 300 crore additional labour days of work. Also, this will aid in provision of work for the returning migrants.

 

Health and Education Sector:

Since public expenditure on health will increase, Government has planned to ramp up investments in building health and wellness centers both in rural and urban regions. Further, every district will have special blocks in hospitals for treatment of infectious diseases.

The Finance minister announced about the technology driven education via “Diksha”. The government is soon planning to launch PM e-VIDYA programme. This programme will provide digital and online access to education. Also, there will be one earmarked channel on television catering to students of class 1 to 12. Adding further, the substantial use of community radio and podcasts will be made. Special online content will be made available for visually and hearing impaired students.

Further, top 100 universities have been granted authorization to start online courses by May 30. Apart from this, an initiative under the name “Manodarpan” will be launched soon. This programme will help in extending socio-psychological support to students and families regarding mental and emotional well-being.

 

Insolvency and Bankruptcy Code (IBC):

Under this, the debts related to corona cirus pandemic will be excluded from defaults under IBC. No new proceeding for insolvency to be carried out for the next one year. Special provisions will be notified under section 240-A of IBC for MSMEs. In order to insulate MSMEs, the minimum threshold limit to initiate proceedings of insolvency has been raised to Rs 1 crore from previous limit of Rs 1 lakh.

 

Companies Act:

Announcement as to decriminalize the companies Act was made in order to reduce the burden of criminal courts and the National Company Law Tribunal (NCLT).

 

Ease of Doing Business:

Public companies can go for direct listing of securities in permitted foreign jurisdictions. Private companies will be considered as unlisted even if they have debentures in the stock exchanges.

 

Public sector enterprise policy:

Under this policy, the government thinks that it is high time that India sees private sector participation in all the sectors while public sector still plays important role. Therefore, the government has planned to broadly categorize sectors into strategic and others. In strategic sector there will be minimum one to four public sector enterprises in order to safe guard public interest and others will be privatized or merged Whereas in other sectors, public sector enterprise will be privatized. List of the same will soon be notified.

 

State Governments:

The Central Government is facing steep fall in revenues in the same manner State Governments are also facing huge revenue losses. Around Rs 46,038 crore was delegated as tax revenue from the Centre to State Governments. Adding to this, nearly Rs 12,000 crore was also distributed on timely basis. In spite the borrowing limits of states raised, states have only borrowed 14 percent of the authorized limit, 86 percent still remains unused as of date. Government has now raised the borrowing limit of Gross State Domestic Product (GSDP) from 3 percent to 5 percent. This will result in availability of additional borrowing amount of Rs 4.28 lakh crore for the states.

 

 

Market update 18th May 2020. SENSEX crashes 1,069 points on a volatile day.

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Autos - May 18, 2020

Auto sector seeks special package to save industry from Covid-19 crisis

Auto sector seeks special package to save industry from Covid-19 crisis

 

A few automobile producers have supported the decision of PM Narendra Modi to inject Rs.20 lakh crore financial package announced on 12th May, 2020. Most of them still want to see a particular stimulus program aimed at reviving the automobile sector. They is seeking to recover from the outbreak of the COVID-19 pandemic and the recession that has struck the sector from last year. The overwhelming reaction will go a long road ahead towards strengthening the Indian economy and preparing it for post-pandemic revival. It will also help business initiatives to get millions of Indian people back to work safely and mitigate the spread of the COVID-19.

 

Problems faced by the auto sector:

It is recognized that the automobile industry is a big pillar of the Make in India and contributes a significant part of the country’s GDP. The sector often provides job opportunities for thousands of individuals and utilizes an unaccented supply chain. As indicated by Society of Indian Automobile Manufacturers (SIAM), the Indian automotive sector registered a decrease of more than 18 percent in sales of 2,15,48,494 units and a decline of 15 percent in vehicle yield to 2,63,62,284 units in FY20. CV revenue over this time fell by 28.75 percent to 7,17,688 units year-on-year. A release from SIAM reported that the automobile industry was bleeding Rs. 2,300 Crore regularly. The economic plan will also provide funding for the auto sector which will be of great benefit.

While these factories now have the freedom to restart dealerships and begin manufacturing again, they remain handicapped as they can not run at 100 percent. The staff at such plants has declined dramatically as a consequence of the COVID-19 pandemic. Without a doubt, the last few months have been tough for not just the people of India, but also the international automotive sector. Though, the Minister for Road Transport and Highways, Nitin Gadkari, has assured India of a policy of scrapping cars, there is no guarantee as to the other demands raised by the sector so far. Having been economically ineffective over the last few months, particularly in April, when auto firms have for the first time reported zero sales in history. This economic stimulus package could be the only thing expected to get the business back to its original state.

 

Relief:

The package revealed by the Prime Minister will arrive as a significant boost to the auto sector, particularly during this lock down. However, with this recent plan, events may be turned around shortly. Many automotive manufactures and regulators of the auto sector have come forward in favor of the proposal. Economic assistance will be required to restore what remains of the automotive sector following the pandemic.

 

Package:

The Rs 20 Lakh Crore package involves the Reserve Bank’s liquidity initiatives and interest rate cuts, as well as the Rs 1.7 Lakh Crore Free Food Grains to Poor and cash to Poor Women declared in March. Although, the March stimulus amounted to 0.8% of GDP, RBI’s interest rate reductions and liquidity enhancing initiatives amounted to 3.2% of GDP. The package will concentrate on laws, liquidity, property, labour. It would include various sectors, including the agricultural industry, the middle class, small and medium-sized businesses, and employees. Self-reliant India will stand on five pillars viz demand, technology-driven system, vibrant demography, infrastructure, and economy. The package accounts for around 10 % of GDP, rendering it one of the highest in the country. India has been on the scientific front in the war against Covid-19.

According to SIAM President Rajan Wadhera, this will indeed provide the right stimulus for the market and rise of our economy. The automotive sector is a solid base of Make in India with major contributions to GDP and employment, and it relies on its supply chain. The package can give tax cuts to small scale and medium-sized organizations and open doors for improving local interest. Anand Mahindra, Chairman of the Mahindra Company, expressed gratitude toward Prime Minister Narendra Modi of a need to render India self-reliant and the 20 Lakh Crore financial package. The introduction of this package to the tune of 10 % of GDP can help all segments of the economy. Indian auto manufacturers have proposed multiple measures to restart the market, such as a temporary tax cut on automobiles, as well as proposals to scrap old vehicles.

 

 

What RERA timeline extension means for developers, homebuyers?

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