Key market barometers hit fresh intraday high in morning trade, extending gains for second day. At 10:26 IST, the barometer index, the S&P BSE Sensex, was up 378.99 points or 1.20% at 31,984.21. The Nifty 50 index was up 109.30 points or 1.17% at 9,424.25.

In the broader market, the S&P BSE Mid-Cap index rose 1.10% while the S&P BSE Small-Cap index gained 1.33%.

The market breadth was strong. On the BSE, 1276 shares rose and 492 shares fell. A total of 92 shares were unchanged. In the Nifty 50 index, 38 shares advanced while 12 stocks declined.

The market could remain volatile as traders roll over positions in the F&O segment from the near month May series to June series. The May 2020 F&O contracts expire today, 28 May 2020.

Foreign portfolio investors (FPIs) sold shares worth Rs 334.74 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,408.85 crore in the Indian equity market on 27 May, provisional data showed.

Buzzing Index:

The Nifty Auto index rose 2% to 6,015.15, extending gains for seventh day. The index has added 10.8% in seven sessions.

Tata Motors (up 3.66%), Eicher Motors (up 2.54%), Ashok Leyland (up 1.85%), Maruti Suzuki India (up 1.78%), Hero MotoCorp (up 1.56%), TVS Motor Company (up 1.27%), Escorts (up 0.84%), Bajaj Auto (up 0.5%) and Mahindra & Mahindra (up 0.24%) advanced.

Q4 Results Today:

Lupin (down 1.03%), TVS Motor Company (up 0.76%), CEAT (up 0.95%), Federal Bank (up 1.22%), Radico Khaitan (up 0.99%), IIFL Finance (up 2.41%), Heidelberg Cement India (up 1.05%), LT Foods (up 0.67%) and Agro Tech Foods (up 0.06%) are some of the companies that will announce their quarterly result today.

Earnings Impact:

United Spirits fell 1.90% to Rs 566.85 after the company reported 52.5% decline in consolidated net profit to Rs 58.40 crore on 14.1% fall in net sales to Rs 1990.50 crore in Q4 March 2020 over Q4 March 2019.

Consolidated profit before tax (PBT) stood at Rs 183.50 crore in Q4 FY20, up by 5.6% from Rs 173.70 crore in Q4 FY19. Revenue declined primarily due to COVID-19 led disruption in India in March, which exacerbated the impact of the ongoing consumption slowdown. Employee expense declined 36.91% to Rs 109.40 crore during the quarter.

On the volume front, the alcoholic beverages manufacturer's prestige & above segment witnessed 19.6% fall in volumes as it stood at 8.4 EUm while the popular segment's volumes contracted by 7.5% to 9.9 EUm in Q4 FY20 over Q4 FY19.

Sun Pharmaceutical Industries rose 1.51% to Rs 457.35 amid value buying. The stock had fallen nearly 4% in the past two sessions.

Sun Pharma reported 37.1% decline in consolidated net profit to Rs 399.84 crore on 14.3% rise in total revenue from operations to Rs 8,184.94 crore in Q4 March 2020 over Q4 March 2019. Profit before tax (PBT) stood at Rs 577.44 crore in Q4 FY20, down by 16.8% from Rs 694.24 crore in Q4 FY19.

The company recorded a one-time expenditure of Rs 260.64 crore as an exceptional item in the March 2020 quarter. Of the total amount, the charge of Rs 104.28 crore was due to the Supreme Court of India's judgment in a case pertaining to central excise refund claims and Rs 156.36 crore was on account of a settlement made by Dusa Pharmaceuticals, the company's US-based subsidiary, with the U.S. Department of Justice and an individual to resolve allegations relating to the sales, marketing and promotion of two of its products.

In the fourth quarter, the drug maker's India formulations earnings stood at Rs 2,364.80 (up 114.7% YoY) while US formulations earnings were at Rs 2,712.88 (down 13.2% YoY). Emerging markets' sales came in at Rs 1,353.97 (up 11% YoY) and formulation sales in Rest of World (ROW) markets were at Rs 1,121.22 crore (up 4% YoY). The term 'YoY' indicates year-on-year comparison.

For Q4 FY20, external sales of active pharmaceutical ingredients (API) were at Rs 483.43 crore, flat over Q4 last year. Consolidated R&D investment fell 5.6% to Rs 536 crores in Q4 FY20, from Rs. 567.49 crores reported in Q4 last year.

Local stocks are trading higher in early trade, extending yesterday's rally. At 9:23 IST, the barometer index, the S&P BSE Sensex, was up 225.07 points or 0.71% at 31,830.29. The Nifty 50 index was up 69.45 points or 0.75% at 9,384.40. Positive Asian stocks boosted sentiment.

The S&P BSE Mid-Cap index was up 0.55%. The S&P BSE Small-Cap index was up 0.8%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 821 shares rose and 272 shares fell. A total of 55 shares were unchanged.

F&O expiry:

Market could remain volatile as traders roll over positions in the F&O segment from the near month May series to June series. The May 2020 F&O contracts expire today, 28 May 2020.

Stocks in news:

United Spirits rose 0.23%. The company's consolidated net profit dropped 52.52% to Rs 58.40 crore on 11.28% fall in total income to Rs 2,065 crore in Q4 March 2020 over Q4 March 2019.

Vedanta rose 1.99%. Vedanta announced that India Ratings has downgraded the rating of the company to IND AA- with negative outlook from previous rating of IND AA/ negative outlook.

Wipro fell 1.29%. Wipro Gallagher Solutions (WGS), a Wipro company and leading provider of loan origination software solutions, announced the launch of NetOxygen v7.0, the latest version of its NetOxygen loan origination solution platform.

IndoStar Capital Finance rose 0.5%. IndoStar Capital Finance closed on Rs 1,225 crore equity capital injection by Brookfield Business Partners L.P., together with its institutional partners. As part of the investment, Brookfield will become a co-promoter in IndoStar and has the ability to nominate two board members.

Adani Power rose 1.62%. Adani Power has signed power purchase agreement with the Madhya Pradesh government for procurement of 1,230 MW of electricity on a long-term basis from a new power station of 1,320 MW capacity to be set up on super critical technology.

Tube Investments of India advanced 4.19%. Tube Investments of India said that the board of directors of the company has approved fresh long-term borrowing, to meet the company's fund needs during the financial year 2020-21, of a sum not exceeding in the aggregate Rs 200 crore, including by way of issue of privately placed secured non-convertible debentures, in one or more tranches.

Global Markets:

Overseas, Asian stocks were trading higher on Thursday on the back of an overnight surge on Wall Street as optimism over the reopening of economies buoyed investor sentiment.

Japanese Prime Minister Shinzo Abe's cabinet approved on Wednesday a new $1.1 trillion stimulus package that includes significant direct spending, to stop the coronavirus pandemic pushing the world's third-largest economy deeper into recession.

In US, stocks rose on Wednesday, with the S&P 500 closing above 3,000 for the first time since March 5, as the further easing of lockdowns lifted optimism for an economic recovery. Shares of previously beaten-down travel companies saw strong gains on Tuesday and Wednesday.

Developments on U.S.-China relations likely continued to be monitored by investors, as tensions between the two economic powerhouses mount.

U.S. Secretary of State Mike Pompeo told Congress on Wednesday that Hong Kong was no longer autonomous from China, raising questions over the special administrative region's favorable trade relationship with the U.S. as well as opening up the possibility of sanctions on Chinese officials. Pompeo's comments came following the proposal of a national security law from Beijing that has spurred protests in Hong Kong.

US President Donald Trump said Tuesday he plans to make an announcement by the end of the week regarding China's efforts to impose new security laws that would undercut Hong Kong's autonomy. And China's Foreign Ministry said on Wednesday it would strike back at the U.S. if it took any action over the security laws.

The House of Representatives on Wednesday also passed legislation condemning China for the detention and torture of Uighur Muslims in the country's western region of Xinjiang.

Meanwhile, New York Federal Reserve Bank President John Williams said the central bank was thinking hard about the possibility of targeting bond yields to keep U.S. borrowing costs low. St. Louis Fed President James Bullard also said policy makers should consider incentives to get workers back to their jobs, rather than expanding unemployment pay, as the recovery takes hold.

Back home, key barometers witnessed a blockbuster rally on Wednesday, led by a surge in banks shares. The barometer S&P BSE Sensex jumped 995.92 points or 3.25% at 31,605.22. The Nifty 50 index surged 285.90 points or 3.17% at 9,314.95.

Foreign portfolio investors (FPIs) sold shares worth Rs 334.74 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,408.85 crore in the Indian equity market on 27 May, provisional data showed.

At 14:30 IST, the barometer index, the S&P BSE Sensex jumped 907.45 points or 2.96% at 31,516.75, The Nifty 50 index rallied 259.05 points or 2.87% at 9,288.10.

The sentiment was boosted after China on Wednesday said that the situation at the border with India is overall stable and controllable, and both the countries have proper mechanisms and communication channels to resolve the issues through a dialogue and consultation.

The comment from Foreign Ministry spokesman Zhao Lijian came as a big relief amid continuing standoff between the militaries of India and China at the Line of Actual Control (LAC). Several areas along the nearly 3,500-km-long LAC in Ladakh and North Sikkim have witnessed major military build-up by both the Indian and Chinese armies recently.

The broader market trailed the benchmark. The S&P BSE Mid-Cap index was up 0.22% while the S&P BSE Small-Cap index rose 0.38%.

The market breadth was positive. On the BSE, shares 1,248 rose and 931 shares fell. A total of 167 shares were unchanged.

Buzzing Index:

The Nifty Bank Index surged 6% to 18,486.70. Axis Bank (up 10.71%), ICICI Bank (up 7.83%), Bandhan Bank (up 6.71%), Federal Bank (up 5.98%), Kotak Mahindra Bank (up 5.3%), RBL Bank (up 5.02%), IndusInd Bank (up 4.95%), HDFC Bank (up 4.27%), State Bank of India (up 3.7%), IDFC First Bank (up 2.78%), Bank of Baroda (up 2.56%) and Punjab National Bank (up 2.25%) surged.

Axis Bank jumped after the media reported that private equity major Carlyle has started talks with Axis Bank to pump in around a billion dollars as growing systemic level stress and the economic slump are pushing banks and shadow lenders to create provision cushions to deal with future asset slippages. The deal is likely to be in the form of primary issuance of shares via a preferential allotment route that may result in Carlyle owning up to 8% stake in Axis Bank.

However, Axis Bank clarified to the bourses today that the news item is speculative and it has not taken any decision in this regard. As such no disclosure is required to be made under regulation 30 of the listing regulations and the Bank shall keep the exchange duly informed as and when any decision is taken by it in this matter”, it said in the BSE filing.

Kotak Mahindra Bank gained after the bank announced the commencement of its fund-raising exercise via qualified institutions placement (QIP) issue of equity shares on Tuesday, 26 May 2020. The bank has set a floor price of Rs 1,147.75 per equity share for the QIP issue. The bank may offer a discount of not more than 5% on the floor price. The bank intends to use the net proceeds of the issue to augment its capital base and to strengthen its balance sheet.

The Nifty IT index gained 1.62% to 13,794.40, bouncing back from yesterday's 1.93% fall. Depreciation of rupee against the dollar aided the rally.

Wipro (up 4.34%), Infosys (up 3.28%), TCS (up 3.09%), MindTree (up 1.07%), Tech Mahindra (up 0.75%), NIIT Technologies (up 0.64%), Hexaware Technologies (up 0.63%) and HCL Technologies (up 0.52%) were top gainers in IT segment.

Q4 Results Today:

Sun Pharmaceutical Industries (up 0.36%), Dabur India (down 0.96%), United Spirits (down 0.56%), Tata Investment Corporation (up 2.45%), Aditya Birla Fashion and Retail (down 0.88%), Vaibhav Global (down 0.77%), Quess Corp (up 1.44%), Ujjivan Financial Services (up 3.94%), and KPIT Technologies (up 0.46%) are some of the companies that will announce their quarterly earnings today.

Earnings Impact:

Deepak Nitrite fell 0.08%. The chemical maker's standalone net profit soared 105.6% to Rs 116.26 crore on an 8.1% rise in net sales to Rs 525.24 crore in Q4 March 2020 over Q4 March 2019. PBT surged 83.5% to Rs 159.71 crore in Q4 March 2020 over Q4 March 2019. Total tax expenses rose 42.6% to Rs 43.45 crore in Q4 March 2020. EBITDA margin improved to 35.2% in Q4 March 2020 from 22.7% reported in Q4 March 2019. Performance was led by realisation gains in both fine & speciality chemicals (FSC) and performance products (PP) segment.

Torrent Pharmaceuticals tumbled 6.19%. The company reported consolidated net profit of Rs 314 crore in Q4 March 2020 as against net loss of Rs 152 crore in Q4 March 2019. Net sales rose 4.9% to Rs 1,912 crore in Q4 March 2020 over Q4 March 2019. The research & development (R&D) spend gained 7% to Rs 118 crore in Q4 March 2020 as against Rs 139 crore in Q4 March 2019. Pre-tax profit stood at Rs 293 crore in Q4 March 2020 as against pre-tax loss of Rs 150 crore in Q4 March 2019. Current tax expenses fell 22.2% to Rs 49 crore in Q4 March 2020 compared with Rs 63 crore in Q4 March 2019.

Bayer Cropscience jumped 4.63% to Rs 5220.85, rising for second straight session after reporting turnaround Q4 numbers. The stock is up 17.33% in two trading sessions from its previous closing low of Rs 4449.65 on 22 May 2020. The counter hit a record high of Rs 5,245 on BSE during intraday trade today. Bayer Cropscience reported a net profit of Rs 31.50 crore in Q4 March 2020 as against a net loss of Rs 57.1 crore in Q4 March 2019. Net sales for quarter ending March 2020 stood at Rs 459 crore, up 82% from Rs 252.20 crore in the same period last year. The company reported pre-tax profit of Rs 25.7 crore in Q4 March 2020 as against a pre-tax loss of Rs 95 crore in Q4 March 2019. The result was announced after market hours on Friday, 22 May 2020.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 5.987% compared with previous closing of 5.975% in the previous trading session.

In the foreign exchange market, the partially convertible rupee edged lower to 75.7125 compared with its previous closing of 75.66.

In the commodities market, Brent crude for July 2020 settlement was down 58 cents cents to $35.59 a barrel. The contract rose 2.96% to settle at $36.17 a barrel in the previous trading session.

MCX Gold futures for 5 June 2020 settlement fell 0.59% to Rs 46,695.

The main benchmarks advanced further in afternoon trade, supported by buying in banks and financial stocks. The Nifty ascended toward 9200 mark. At 13:15 IST, the barometer index, the S&P BSE Sensex jumped 520.98 points or 1.70% at 31,130.28. The Nifty 50 index rallied 153 points or 1.69% at 9,182.05.

In the broader market, the S&P BSE Mid-Cap index was down 0.26%. The S&P BSE Small-Cap index rose 0.18%.

The market breadth was positive. On the BSE, shares 1,165 rose and 928 shares fell. A total of 155 shares were unchanged.

Top Gainers & Losers:

Grasim Industries (up 4.58%), ICICI Bank (up 4.39%), Bajaj Finance (up 3.93%) and UPL (up 3.75%) were top gainers in Nifty 50 index.

Ultratech Cement (down 1.99%), Zee Entertainment Enterprises (down 1.69%), Mahindra & Mahindra (down 1.27%), Indian Oil Corporation (down 1.23%) and Dr Reddy's Laboratories (down 1.11%) were top losers in Nifty 50 index.

Stocks in Spotlight:

Axis Bank jumped 5.19%. The media reported that private equity major Carlyle has started talks with Axis Bank to pump in around a billion dollars as growing systemic level stress and the economic slump are pushing banks and shadow lenders to create provision cushions to deal with future asset slippages. The deal is likely to be in the form of primary issuance of shares via a preferential allotment route that may result in Carlyle owning up to 8% stake in Axis Bank.

Kotak Mahindra Bank gained 2.70% after the bank announced the commencement of its fund-raising exercise via qualified institutions placement (QIP) issue of equity shares on Tuesday, 26 May 2020. The bank has set a floor price of Rs 1,147.75 per equity share for the QIP issue. The bank may offer a discount of not more than 5% on the floor price. The bank intends to use the net proceeds of the issue to augment its capital base and to strengthen its balance sheet.

Bharti Airtel rose 0.23% to Rs 560.45. Bharti Telecom, yesterday, 26 May 2020, sold 2.75% stake in Bharti Airtel to institutional investors through an accelerated book building process in the secondary market. The total sale proceeds of over Rs 8,433 crore was over-subscribed multiple times with healthy mix of all categories of investors. The sale proceeds will be utilized to fully repay debt at Bharti Telecom which was raised primarily to finance the acquisition of Bharti Airtel equity shares in the past. Post transaction, Bharti Group and Singtel (the promoter group) will continue to own a majority stake in Bharti Airtel at 56.23%.

Larsen & Toubro (L&T) advanced 2.76%. The company said its heavy engineering arm ensured dispatch of critical reactors, coke drums and sub-assemblies of nuclear fusion reactor for their global clients during the lockdown period in India from beginning of last week of March. All these significant orders for process plant and nuclear power mega projects were secured against global competition with stiff delivery requirements.

Adani Ports & Special Economic Zone (APSEZ) added 2.90%. The company has raised Rs 500 crore through allotment of 5,000 rated, listed, secured, redeemable, non-convertible debentures (NCDs) of the face value of Rs 10,00,000 each on private placement basis.

Foreign Markets:

European stock markets opened higher as the region prepares itself to unleash a new coronavirus stimulus package. European Commission President Ursula von der Leyen is set to present her own proposal Wednesday, 27 May 2020, building on the Franco-German plan.

Asian shares were mixed on investor concerns about rising tensions between the United States and China over Hong Kong tempered optimism about a re-opening of the world economy. The White House reportedly said a proposed national security law might jeopardize the Chinese territory's status as a global financial center. The law being considered for Hong Kong by the Chinese legislature has prompted warnings it might erode the independence of courts and other elements that help to make the former British colony a business center.

As per reports, the US was considering sanctions on Chinese firms and officials over the situation in Hong Kong. US President Donald Trump will reportedly make an announcement about the administration's response to China's actions by the end of this week.

The US equity market finished session sharply higher on Tuesday, 26 May 2020, as investors were emboldened by fresh coronavirus vaccine news from Novavax and Merck and signs that global economies are crawling back from the pandemic shutdown. The S&P 500 exceeded its 200-day moving average (DMA) for the first time since 5 March, but failed to close above the key level. Rising above 200 DMA could signal a change in long-term trend from bearish to bullish.

Risk sentiments also improved on hopes that the worst of the economic impact of the shutdown is in the past after data showing U.S. consumer confidence nudged up in May. Consumer confidence edged higher in May after two months of steep declines as businesses shuttered by the coronavirus pandemic gradually reopened, but the measure still hovers near six-year lows. The closely watched index of Americans' outlook rose to 86.6 from 85.7 in April, the Conference Board said Tuesday, driven by a pickup in expectations for the next six months. That comes after a record plunge last month.

Domestic equity barometers hit fresh intraday high in early afternoon trade, led by gains in bank stocks. At 12:27 IST, the barometer index, the S&P BSE Sensex, was up 331.07 points or 1.08% at 30,940.37. The Nifty 50 index was up 97.10 points or 1.08% at 9,126.15.

In the broader market, the S&P BSE Mid-Cap index and the S&P BSE Small-Cap index were almost flat.

The market breadth was positive. On the BSE, 1048 shares rose and 935 shares fell. A total of 148 shares were unchanged. In the Nifty 50 index, 31 stocks advanced while 19 shares declined.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 55,94,175 far with 3,50,531 deaths. India reported 83,004 active cases of COVID-19 infection and 4,337 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 2.43% to 30.70. The Nifty May 2020 futures were trading at 9,116.20, a discount of 9.95 points compared with the spot at 9,126.15.

On the options front, the Nifty option chain for 28 May 2020 expiry showed maximum call open interest (OI) of 30.87 lakh contracts at the 9,200 strike price. Maximum put OI of 51.25 lakh contracts was seen at 9,000 strike price.

Buzzing Index:

The Nifty Bank index rose 2.92% to 17,950.10, extending gains for second day. The index lost 13.2% in the past one month while the benchmark Nifty 50 index fell 2.8% during the same period.

Among state-run lenders, Punjab & Sind Bank (up 1.57%), United Bank of India (up 1.56%), Canara Bank (up 1.02%), State Bank of India (up 0.56%), Union Bank of India (up 0.44%), Bank of India (up 0.32%), Punjab National Bank (up 0.19%) and Allahabad Bank (up 0.13%) edged higher.

Among private lenders, ICICI Bank (up 3.73%), Bandhan Bank (up 2.01%), City Union Bank (up 1.91%), HDFC Bank (up 1.64%), RBL Bank (up 1.63%), Federal Bank (up 1.3%), Yes Bank (up 1.28%) and IndusInd Bank (up 1.09%) advanced.

Axis Bank jumped 4.5%. The media reported that private equity major Carlyle has started talks with Axis Bank to pump in around a billion dollars as growing systemic level stress and the economic slump are pushing banks and shadow lenders to create provision cushions to deal with future asset slippages. The deal is likely to be in the form of primary issuance of shares via a preferential allotment route that may result in Carlyle owning up to 8% stake in Axis Bank.

Kotak Mahindra Bank rose 2.24% to Rs 1,178.25 after the bank announced the commencement of its fund-raising exercise via qualified institutions placement (QIP) issue of equity shares on Tuesday, 26 May 2020. The bank has set a floor price of Rs 1,147.75 per equity share for the QIP issue. The bank may offer a discount of not more than 5% on the floor price. The bank intends to use the net proceeds of the issue to augment its capital base and to strengthen its balance sheet.

Key benchmarks extended gains and hit fresh intraday high in mid-morning trade. At 11:28 IST, the barometer index, the S&P BSE Sensex, was up 211.84 points or 0.69% at 30,821.14. The Nifty 50 index was up 63.20 points or 0.70% at 9,092.25.

In the broader market, the S&P BSE Mid-Cap index and the S&P BSE Small-Cap index were almost flat.

The market breadth was positive. On the BSE, 962 shares rose and 895 shares fell. A total of 119 shares were unchanged. In the Nifty 50 index, 32 stocks advanced while 17 shares declined.

Buzzing Index:

The Nifty Metal index added 0.96% to 1,773.20, extending gains for second day. The index has added 3.67% in two sessions as China's trade data and macro-economic indicators for April indicate that economic activity after the Covid-19 lockdown is resuming.

Steel Authority of India (up 3%), Hindalco Industries (up 2.98%), Hindustan Copper (up 2.64%), National Aluminium Company (up 1.99%), JSW Steel (up 1.48%) and Tata Steel (up 0.57%) advanced.

NMDC (down 1.78%), Jindal Steel & Power (down 0.41%) and Hindustan Zinc (down 0.3%) and Vedanta (down 0.17%) declined.

Earnings Impact:

Deepak Nitrite rose 0.72% to Rs 504.75. The chemical maker's standalone net profit soared 105.6% to Rs 116.26 crore on an 8.1% rise in net sales to Rs 525.24 crore in Q4 March 2020 over Q4 March 2019. PBT surged 83.5% to Rs 159.71 crore in Q4 March 2020 over Q4 March 2019. Total tax expenses rose 42.6% to Rs 43.45 crore in Q4 March 2020. EBITDA margin improved to 35.2% in Q4 March 2020 from 22.7% reported in Q4 March 2019. Performance was led by realisation gains in both fine & speciality chemicals (FSC) and performance products (PP) segment.

Torrent Pharmaceuticals tumbled 4.82% to Rs 2456.90. The company reported consolidated net profit of Rs 314 crore in Q4 March 2020 as against net loss of Rs 152 crore in Q4 March 2019. Net sales rose 4.9% to Rs 1,912 crore in Q4 March 2020 over Q4 March 2019. The research & development (R&D) spend gained 7% to Rs 118 crore in Q4 March 2020 as against Rs 139 crore in Q4 March 2019. Pre-tax profit stood at Rs 293 crore in Q4 March 2020 as against pre-tax loss of Rs 150 crore in Q4 March 2019. Current tax expenses fell 22.2% to Rs 49 crore in Q4 March 2020 compared with Rs 63 crore in Q4 March 2019.

Global Markets:

Asian shares slipped on Wednesday as investor concerns about rising tensions between the United States and China over Hong Kong tempered optimism about a re-opening of the world economy. The White House reportedly said a proposed national security law might jeopardize the Chinese territory's status as a global financial center. The law being considered for Hong Kong by the Chinese legislature has prompted warnings it might erode the independence of courts and other elements that help to make the former British colony a business center.

As per reports, the US was considering sanctions on Chinese firms and officials over the situation in Hong Kong. US President Donald Trump will reportedly make an announcement about the administration's response to China's actions by the end of this week.

The US equity market finished session sharply higher on Tuesday, 26 May 2020, as investors were emboldened by fresh coronavirus vaccine news from Novavax and Merck and signs that global economies are crawling back from the pandemic shutdown. The S&P 500 exceeded its 200-day moving average (DMA) for the first time since 5 March, but failed to close above the key level. Rising above 200 DMA could signal a change in long-term trend from bearish to bullish.

Risk sentiments also improved on hopes that the worst of the economic impact of the shutdown is in the past after data showing U.S. consumer confidence nudged up in May. Consumer confidence edged higher in May after two months of steep declines as businesses shuttered by the coronavirus pandemic gradually reopened, but the measure still hovers near six-year lows. The closely watched index of Americans' outlook rose to 86.6 from 85.7 in April, the Conference Board said Tuesday, driven by a pickup in expectations for the next six months. That comes after a record plunge last month.

Shares of Novavax Inc closed 4.5% higher after the US biotech group has announced the launch of human trials for its COVID-19 vaccine, expecting initial results in July.

Shares of Merck rose 1.2% after pharma giant also announced it is jumping into the coronavirus space with two deals involving two separate vaccine candidates for COVID-19 and a deal linked to a possible treatment for the disease. Merck on Tuesday said that it plans to work with nonprofit research organizations to develop a vaccine.

The equity barometers bounced back in morning trade. At 10:27 IST, the barometer index, the S&P BSE Sensex, was up 53.62 points or 0.18% at 30,662.92. The Nifty 50 index was up 13.20 points or 0.15% at 9,042.25.

In the broader market, the S&P BSE Mid-Cap index was down 0.36% while the S&P BSE Small-Cap index was down 0.13%.

The market breadth was negative. On the BSE, 811 shares rose and 845 shares fell. A total of 113 shares were unchanged. In the Nifty 50 index, 25 stocks advanced while 25 shares declined.

Buzzing Index:

The Nifty Auto index skid 0.73% to 5811.45, amid profit booking after witnessing a five-day gaining streak. The index has added 7.81% in the past five sessions.

TVS Motor Company (down 2.39%), Mahindra & Mahindra (down 2.27%), Escorts (down 1.47%), Maruti Suzuki India (down 1.44%), Eicher Motors (down 0.71%), Ashok Leyland (down 0.46%) and Bajaj Auto (down 0.29%) declined.

Hero MotoCorp (up 1.17%) and Tata Motors (up 2.29%) advanced.

Q4 Results Today:

Sun Pharmaceutical Industries (down 1.03%), Dabur India (down 0.75%), United Spirits (down 0.53%), Tata Investment Corporation (up 1.29%), Tube Investments of India (down 0.19%), Aditya Birla Fashion and Retail (down 0.82%), JSW Holdings (up 1.15%), Vaibhav Global (up 0.15%), Quess Corp (down 1.86%), Ujjivan Financial Services (down 0.10%), and KPIT Technologies (up 1.85%) are some of the companies that will announce their quarterly earnings today.

Stocks in Spotlight:

Hind Rectifiers hit an upper circuit of 5% at Rs 115.50. The company has resumed full manufacturing operations at Dehradun Plant w.e.f. 25 May 2020 in compliance with all guidelines issued by the government.

Praj Industries fell 3.14% to Rs 53.95. In view of current situation of COVID-19 pandemic, the company's board has decided to cancel the proposal of buy-back of shares.

Century Plyboards fell 1.65% to Rs 101.25. the company informed that Cyclone AMPHAN had struck the district of South 24 Parganas in West Bengal on 20 May 2020 leading to extensive damage to the factory shed and building at its Joka factory near Kolkata. The plant production has been partly shut down and all measures are being taken to resume the operations safely, the firm said in a BSE filing.

Key indices are trading with modest gains in early trade. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 41.64 points or 0.14% at 30,650.94. The Nifty 50 index was up 13.55 points or 0.15% at 9,042.60. Asian stocks were trading mixed.

The S&P BSE Mid-Cap index was off 0.08%. The S&P BSE Small-Cap index was up 0.06%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 611 shares rose and 465 shares fell. A total of 72 shares were unchanged.

Stocks in news:

Bharti Airtel rose 0.58% to Rs 562.50. Bharti Telecom has yesterday, 26 May 2020 sold 2.75% stake in Bharti Airtel to institutional investors through an accelerated book building process in the secondary market. The total sale proceeds of over Rs 8433 crore was over-subscribed multiple times with healthy mix of all categories of investors, long only and hedge fund investors across geographies in India, Asia, Europe and the United States of America (US), Bharti Telecom said in a statement.

The sale proceeds will be utilized to fully repay debt at Bharti Telecom which was raised primarily to finance the acquisition of Bharti Airtel equity shares in the past. With Bharti Telecom becoming a zero debt company, Bharti Airtel's credit profile will also be augmented as it will stand to benefit from deleveraging on a consolidated basis including any debt of promoter holding company. Post transaction, Bharti Group and Singtel (the promoter group) will continue to own a majority stake in Bharti Airtel at 56.23%.

Kotak Mahindra Bank gained 2.37%. The Issuance Committee of the Board has amongst others passed resolution approving the opening of the Qualified institutions placement of equity shares on 26 May 2020.

Coromandel International surged 5.78% after consolidated net profit jumped 112.18% to Rs 234.20 crore on 8.84% rise in total income to Rs 2,881.25 crore in Q4 March 2020 over Q4 March 2019.

Deepak Nitrite advanced 3.05% after consolidated net profit jumped 88.39% to Rs 172.30 crore on 4.04% rise in total income to Rs 1,057.74 crore in Q4 March 2020 over Q4 March 2019.

S H Kelkar and Company rose 0.19%. The company's consolidated net profit dropped 35.12% to Rs 12.71 crore on 2.6% fall in total income to Rs 273.54 crore in Q4 March 2020 over Q4 March 2019.

Praj Industries lost 3.41% after the company said that in view of current situation of COVID 19 pandemic, the company's board has decided to cancel the proposal of buy-back of shares.

Global Markets:

Overseas, Asian stocks were trading mixed on Wednesday as investor concerns about rising tensions between the United States and China tempered optimism about a re-opening of the world economy.

Developments in U.S.-China relations were likely watched by investors on Wednesday. As per reports, the U.S. was considering sanctions on Chinese firms and officials over the situation in Hong Kong. U.S. President Donald Trump said Tuesday afternoon he would make an announcement about the administration's response to China's actions by the end of this week.

In US, stocks closed higher on Tuesday on optimism about the development of coronavirus vaccines and a revival of business activity. Apple Inc said Tuesday that it would reopen dozens of U.S. stores as more regions begin to lift restrictions on business operations amid the COVID-19 outbreak.

Travel-related stocks surged in the U.S. and Europe on data showing an increase in U.S. air travel and after news that a German airline will resume flights in July as travel restrictions are lifted in Spain.

The New York Stock Exchange trading floor also partially reopened Tuesday, with Plexiglas barriers to keep traders apart and capacity limited to one quarter its pre-virus levels.

Biotech company Novavax Inc. said it started human trials of its vaccine candidate in Australia. The first phase of the placebo-controlled study will enroll 135 healthy adults and the preliminary round of data from that study is expected in July. Big drugmaker Merck & Co. also said it would soon have two potential vaccines under its umbrella and an experimental drug against the coronavirus, joining rivals in the frantic search for medicines.

There are 10 vaccines in clinical evaluation and 114 in preclinical evaluation, as per reports

In U.S. economic data Monday, the Chicago Fed's national activity index registered at a negative 16.74 in April, down from a revised negative 4.97 in March. The S&P CoreLogic Case-Shiller index showed home prices on a national level rose 4.4% annually in March, up from 4.2% in February.

Back home, the main stock indices pared early gains and ended with small losses on Tuesday. Selling in IT pivotals, Bharti Airtel and Reliance Industries put pressure on bourses. The barometer S&P BSE Sensex fell 63.29 points or 0.21% at 30,609.30. The Nifty 50 index fell 10.20 points or 0.11% at 9,029.05.

Foreign portfolio investors (FPIs) bought shares worth Rs 4,716.13 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,841.09 crore in the Indian equity market on 26 May, provisional data showed.

The broader market traded with decent gains. The S&P BSE Mid-Cap index rose 0.93% while the S&P BSE Small-Cap index gained 0.25%.

The market breadth was almost even. On the BSE, 1112 shares rose and 1102 shares fell. A total of 193 shares were unchanged. In the Nifty 50 index, 26 shares advanced while 24 stocks declined.

Buzzing Index:

The Nifty Pharma index was down 0.76% to 9,527.75, snapping its three days winning run. The index gained 5.68% in the past three trading sessions.

Piramal Enterprises (down 3.18%), Cadila Healthcare (down 2.8%), Cipla (down 1.82%), Aurobindo Pharma (down 1.73%), Sun Pharmaceutical Inds (down 1.36%), Dr. Reddy's Laboratories (down 0.54%) and Divi's Laboratories (down 0.2%) were top losers in Nifty Pharma index.

Shares of Glenmark Pharmaceuticals were down 1.11% at Rs 347.90. The drug maker announced a new randomized, open-label study to test the combined efficacy of two antiviral drugs Favipiravir and Umifenovir as a potential COVID-19 treatment strategy.

Indoco Remedies was down 0.41%. The drug maker announced receiving approval for its abbreviated new drug application (ANDA) for Succinylcholine Chloride injection USP 200 mg/ 10 ml (20 mg/ml) multi‐dose vial, therapeutically equivalent to the reference listed drug (RLD) Quelicin Injection of Hospira, Inc. Succinylcholine Chloride injection is indicated as an adjunct to general anesthesia, to facilitate tracheal intubation, and to provide skeletal muscle relaxation during surgery or mechanical ventilation. The product is being used for some patients infected with Corona virus (COVID‐19).

Stocks in Spotlight:

Shares of ITC were up 1.82% at Rs 189.75. The company on Saturday, 23 May 2020, entered into a share purchase agreement (SPA) to acquire 100% stake of Sunrise Foods (SFPL), which is engaged in the business of spices under the trademark 'Sunrise'. The transaction is subject to fulfillment of various terms and conditions as specified in the Share Purchase Agreement (SPA). The proposed acquisition is aligned with ITC's strategy to rapidly scale up its FMCG businesses in a profitable manner, leveraging its institutional strengths viz. deep consumer insight, a deep and wide distribution network, agri-commodity sourcing expertise, cuisine knowledge, strong rural linkages and packaging know-how.

Maruti Suzuki India (MSIL) gained 1.31%. The company has received intimation from Suzuki Motor Gujarat that they would re-start production of vehicles from 25 May 2020, strictly in accordance with the Government regulations and guidelines and by observing the company's own concern for the highest standards of safety. SMG manufactures cars on a contract basis for MSIL.

Shares of Eicher Motors were up 4.23% at Rs 14507 on BSE. The auto maker on Monday (25 May 2020) said that its board will consider sub-division of the equity shares of face value of Rs 10 each on 12 June 2020. The board will also consider Q4 March 2020 results on the same day.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 5.975% compared with previous closing of 5.961% in the previous trading session.

In the foreign exchange market, the partially convertible rupee edged higher to 75.66 compared with its previous closing of 75.95.

In the commodities market, Brent crude for July 2020 settlement was up 91 cents to $36.04 a barrel. The contract rose 2.58% to settle at $35.13 a barrel in the previous trading session.

MCX Gold futures for 5 June 2020 settlement fell 0.28% to Rs 46,840.

Benchmark indices sharply pared gains and traded near the flat line with minor profits in afternoon trade. At 13:25 IST, the barometer index, the S&P BSE Sensex, was up 22.37 points or 0.07% at 30,694.89. The Nifty 50 index rose 13.45 points or 0.15% at 9,052.45.

The broader market traded higher. The S&P BSE Mid-Cap index rose 1.04% while the S&P BSE Small-Cap index gained 0.41%.

The market breadth was positive. On the BSE, 1160 shares rose and 990 shares fell. A total of 178 shares were unchanged. In the Nifty 50 index, 34 shares advanced while 16 stocks declined.

Gainers & Losers:

JSW Steel (up 6.01%), UltraTech Cement (up 5.42%), Eicher Motors (up 4.59%), Titan Industries (up 4.3%) and IndusInd Bank (up 3.38%) were top gainers in Nifty 50 index.

Bharti Airtel (down 4.9%), Bajaj Finserv (down 2.68%), TCS (down 2.2%), Bajaj Finance (down 1.65%) and Zee Entertainment (down 1.26%) were top losers in Nifty 50 index.

Q4 Results Today:

Torrent Pharmaceuticals (down 0.42%), Deepak Nitrite (up 1.72%), Max Financial Services (up 1.03%), Blue Dart (up 1.99%), Coromandel International (up 0.6%), Praj Industries (up 1.79%), V.I.P Industries (up 0.8%) and Wonderla Holidays (down 0.67%) are some of the companies that will announce their quarterly results today.

Earnings Impact:

HDFC was down 1.4% after the housing finance major's standalone net profit declined 22% to Rs 2232.53 on 3.41% rise in total income to Rs 11,981.66 crore in Q4 March 2020 over Q4 March 2019. Dividend income slumped to Rs 2.08 crore in Q4 FY20 from Rs 536.88 crore in Q4 FY19. “ With dividend distribution tax being abolished, some of the subsidiary company did not pay interim dividend, the firm said. Profit on sale of investment was Rs 2 crore in Q4 FY20 as against Rs 321 crore in Q4 FY19. Fair value changes charged to the statement of profit and loss - largely on account of the fall in the stock markets, was Rs 428 crore in Q4 FY20, higher than Rs 167 crore in the previous year.

On the asset quality front, the gross non-performing loans as at 31 March 2020 stood at Rs 8,908 crore. This is equivalent to 1.99% of the loan portfolio. Increase in provisioning, including impact for COVID-19, was Rs 1,274 crore in Q4 FY20, higher than Rs 398 crore in the previous year.

Inclusive of fees and income from assigned loans, the Net Interest Income (NII) for the quarter ended 31 March 2020 stood at Rs 3,780 crore compared to Rs 3,238 crore in the previous year, representing a growth of 17%. The board of HDFC approved a dividend of Rs 21 per share for the year ended March 2020.

Avenue Supermarts tumbled 4.94% to Rs 2283.95. The company said its overall revenue during the month of March 2020 grew by just 11% over March 2019 due to the lockdown effect of the last 9 days of March this year. The trend rapidly deteriorated in April during which more than half of its stores remaining closed for operations or operating for extremely restricted hours. The company's net profit jumped 41.61% to Rs 271 crore on 23.6% increase in to Rs 6,256 crore in Q4 March 2020 over Q4 March 2019. Consolidated EBITDA rose 12.1% to Rs 417 crore in Q4 FY20 from Rs 372 crore in Q4 FY19. EBITDA margin stood at 6.7% in Q4 March 2020, lower than 7.4% in Q4 March 2019.

The company said, Significantly large EBITDA declines are to be expected due to lower sales, lower gross margins, higher cost of operations on account of hardship allowance to front line staff during lockdown and higher personal hygiene/store sanitation costs, it added.

IDFC First Bank jumped 5.57% to Rs 19 after the bank reported a net profit of Rs 71.54 crore in Q4 March 2020 as against net loss of Rs 218.03 crore reported in Q4 March 2019. Total income rose 13.8% to Rs 4439.63 crore in Q4 March 2020 from Rs 3902.11 crore reported in Q4 March 2019. The result was announced after market hours on 22 March 2020.

The bank posted reported a strong growth in core earnings. Net Interest Income (NII) grew by 40% to Rs 1,563 crore in Q4 March 2020 from Rs 1,113 crore in Q4 March 2019. Net interest margin improved to 4.24% in Q4 March 2020 from 3.03% in Q4 March 2019. On asset quality front, the bank's gross non-performing assets (NPAs) stood at Rs 2279.56 crore as on 31 March 2020 as against Rs 2511.36 crore as on 31 December 2019 and Rs 2136.04 crore as on 31 March 2019. The ratio of gross NPAs to gross advances stood at 2.6% as on 31 March 2020 as against 2.83% as on 31 December 2019 and 2.43% as on 31 March 2019.

GMM Pfaudler slumped 7.49% to Rs 3601.20. The firm's net profit declined 13% to Rs 11.60 crore on 5.28% decline in net sales to Rs 131.78 crore in Q4 March 2020 over Q4 March 2019. EBITDA improved 14% to Rs 22.5 crore in Q4 FY20 from Rs 19.8 crore in Q4 FY19. EBITDA margin stood at 17% in Q4 FY20, higher than 14% in Q4 FY19. COVID-19 began impacting our normal business operations on 14th March 2020 by affecting our supply chain and our ability to ship ready equipment to our customers, our production eventually shut down completely on March 23rd, 2020. All in all, additional revenue that could have been recognized in the last quarter in a normal business environment is estimated to be Rs 300 million, the company said in a statement.

Global Markets:

European markets opened higher while Asian stocks continued trading higher on Tuesday as investors looked to a re-opening world economy.

Japanese shares led gains after the Japanese Prime Minister Shinzo Abe on Monday announced the lifting of the state of emergency for the entire nation, as the coronavirus outbreak there eases. As per reports, Abe has said that he would work to increase the government's stimulus packages to more than 200 trillion yen ($1.9 trillion), or about 40% of Japan's annual output.

Investor sentiment received a boost after American biotech firm Novavax said Monday it started the first human study of its experimental coronavirus vaccine. The firm said it expects initial results on safety and immune responses in July.

In Hong Kong, investors are moving on from last week's sharp losses. On Friday, the Hang Seng reportedly had its worst day in nearly five years after Beijing moved to pass a controversial national security law, a blow to the financial hub's autonomy. China's foreign ministry commissioner in Hong Kong, Xie Fang, moved to reassure rattled investors on Monday evening. The legislation won't affect freedoms of speech, press, publication and assembly, Xie said, according to state-run news agency reports. He reportedly added that the controversial legislation will protect the law-based operation of international businesses in Hong Kong.

In economic news, Singapore cut its 2020 economic forecasts for the third time this year. The Singapore economy is now expected to shrink by between 4.0% and 7.0% this year, according to the country's Ministry of Trade and Industry.

In US, markets were closed on Monday for Memorial Day.

The undertone of the market was positive as several countries across the globe have now moved to lift restrictions as early as next week. Metal shares advanced.

The broader market was positive. The S&P BSE Mid-Cap index rose 1.12% while the S&P BSE Small-Cap index gained 0.52%.

The market breadth was positive. On the BSE, 1147 shares rose and 902 shares fell. A total of 175 shares were unchanged. In the Nifty 50 index, 38 shares advanced while 12 stocks declined.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 54,97,538 far with 3,46,269 deaths. India reported 80,722 active cases of COVID-19 infection and 4,167 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Buzzing Index:

The Nifty Metal index rose 2.70% to 1,756.65, resuming uptrend after a day's pause. The metal index has gained 5.4% in the past one month while benchmark Nifty 50 index has lost 2% during the same period.

Jindal Steel & Power (up 8.87%), JSW Steel (up 6.61%), Hindalco Industries (up 3.4%), Tata Steel (up 3.06%), NMDC (up 2.21%), National Aluminium Company (up 2.04%), Steel Authority of India (up 2.01%), Hindustan Zinc (up 1.21%), Hindustan Copper (up 0.41%) and Vedanta (up 0.17%) advanced.

Stocks in Spotlight:

Eicher Motors surged 4.93% to Rs 14,605. The automaker said that its board will consider sub-division of the equity shares on 12 June 2020. It will also consider Q4 results on the same day.

Maruti Suzuki India (MSIL) gained 1.22% to Rs 5196.30. The company has received intimation from Suzuki Motor Gujarat that they would re-start production of vehicles from 25 May 2020, strictly in accordance with the Government regulations and guidelines and by observing the company's own concern for the highest standards of safety. SMG manufactures cars on a contract basis for MSIL.

Glenmark Pharmaceuticals rose 1.25% to Rs 356.20 after the company announced a new randomized, open-label study to test the combined efficacy of two antiviral drugs Favipiravir and Umifenovir as a potential COVID-19 treatment strategy.

The two antiviral drugs have different mechanism of action, and their combination may demonstrate improved treatment efficacy by effectively tackling high viral loads in patients during early stage of disease. The current Glenmark study will examine whether early administration of a combination of Favipiravir and Umifenovir, both acting by different mechanisms, enhances antiviral efficacy on COVID-19 patients. Glenmark has received approval from the Indian regulator to initiate the study.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 2.58% to 31.54. The Nifty May 2020 futures were trading at 9,097.95, a discount of 0.5 points compared with the spot at 9,098.45.

On the options front, the Nifty option chain for 28 May 2020 expiry showed maximum call open interest (OI) of 33.47 lakh contracts at the 9,200 strike price. Maximum put OI of 38.20 lakh contracts was seen at 9,000 strike price.

The undertone of the market was still positive as several countries across the globe have now moved to lift restrictions as early as next week. FMCG shares were in demand.

In the broader market, the S&P BSE Mid-Cap index rose 0.84% while the S&P BSE Small-Cap index gained 0.45%.

The market breadth was positive. On the BSE, 1113 shares rose and 848 shares fell. A total of 144 shares were unchanged. In the Nifty 50 index, 39 shares advanced while 11 stocks declined.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,353.90 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 344.16 crore in the Indian equity market on 22 May, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 54,97,538 far with 3,46,269 deaths. India reported 80,722 active cases of COVID-19 infection and 4,167 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Buzzing Index:

The Nifty FMCG index rose 1.12% to 28,096.35, resuming uptrend after a day's decline. The index has added 2.95% in the past one week while benchmark Nifty 50 rose 0.25% during the same period.

Nestle India (up 2.46%), Godrej Consumer Products (up 1.92%), Tata Global Beverages (up 1.9%), Marico (up 1.58%), Hindustan Unilever (up 1.1%), Britannia Industries (up 0.93%), Dabur India (up 0.62%), Jyothy Laboratories (up 0.25%) and Procter & Gamble Hygiene & Health Care (up 0.23%) edged higher.

ITC rose 1.31% to Rs 188.80. The company has entered into a share purchase agreement (SPA) to acquire 100% stake of Sunrise Foods (SFPL), which is engaged in the business of spices under the trademark 'Sunrise'. The proposed acquisition is aligned with ITC's strategy to rapidly scale up its FMCG businesses in a profitable manner.

Sunrise is the market leader in eastern India in the fast-growing Spices category with a rich heritage and brand legacy of over 70 years. Over the years, the brand has built a loyal consumer franchise, anchored on a differentiated product portfolio tailored to regional tastes and preferences, both in the basic and blended spice segments.

Earnings Impact:

Jindal Steel & Power (JSPL) soared 7.37% to Rs 103.50 after consolidated net profit stood at Rs 305.62 crore in Q4 March 2020 compared with net loss of Rs 2,713.34 crore in Q4 March 2019. Consolidated net sales dropped 13.27% to Rs 8,810.68 crore in Q4 March 2020 over Q4 March 2019.

The company reported a pre-tax profit of Rs 370.35 crore in Q4 March 2020 compared with a pre-tax loss of Rs 3,425.52 crore in Q4 March 2019. Current tax expense stood at Rs 764.32 crore in Q4 March 2020 as against Rs 50.63 crore in Q4 March 2019. The Q4 earnings were announced on Monday, 25 May 2020.

EBITDA jumped 20% to Rs 2,220 crore in Q4 March 2020 from Rs 1,845 crore in Q4 March 2019. EBITDA margin improved to 25% in Q4 FY20 as against 18% in Q4 FY19.

On a consolidated basis, JSPL steel production grew 5% to 2.11 million tonnes (MT) in Q4 March 2020 from 2.01 million tonnes (MT) in Q4 March 2019. Steel sales slipped 2% to 1.93 MT in Q4 March 2020 as compared to 1.98 MT in Q4 March 2019.

With regards to COVID-19 pandemic, JSPL has been nimble and agile in these uncertain times, changing its business model to market & sell its steel products in overseas markets more than domestic markets. The company focused its efforts towards securing full export order book to ensure continuous operation of its plant, even during the lockdown periods announced by the Government of India.

Just Dial gained 1.67% to Rs 353.45 after consolidated net profit jumped 21.6% to Rs 76.07 crore on 1.2% rise in net sales to Rs 234.95 crore in Q4 March 2020 over Q4 March 2019. Other income stood at Rs 38.10 crore for the quarter (up 18.3% YoY), aided by MTM gains on investment portfolio due to decline in bond yields versus Rs 26.40 crore in Q3 December 2020 and Rs 32.20 crore in Q4 March 2019.

Consolidated profit before tax (PBT) gained 18% to Rs 97.54 crore in Q4 March 2020 from Rs 82.71 crore in Q4 March 2019. Tax expenses stood at 16.52 crore in Q4 March 2020, declining 3.6% from Rs 171.13 crore in Q4 March 2019.

Just Dial said business was impacted due to nation-wide lockdown owing to COVID-19. Total Traffic (unique visitors) for the quarter ending 31 March 2020 stood at 138.9 million, a drop of 0.1% as compared to the same period last year. Total active listings stood at 29.4 million as on 31 March 2020, an increase of 14.1% YoY and 2.7% QoQ. Total ratings & reviews stood at 109.7 million at the end of quarter, up 14.7% YoY. Active paid campaigns at the end of quarter stood at 536,236, up 7.1% YoY and 0.2% QoQ. The Q4 earnings were announced on Monday, 25 May 2020.

Global Markets:

Overseas, Asian stocks are trading higher on Tuesday as investors looked to a re-opening world economy.

Japanese shares led gains after the Japanese Prime Minister Shinzo Abe on Monday announced the lifting of the state of emergency for the entire nation, as the coronavirus outbreak there eases. As per reports, Abe has said that he would work to increase the government's stimulus packages to more than 200 trillion yen ($1.9 trillion), or about 40% of Japan's annual output.

Investor sentiment received a boost after American biotech firm Novavax said Monday it started the first human study of its experimental coronavirus vaccine. The firm said it expects initial results on safety and immune responses in July.

In Hong Kong, investors are moving on from last week's sharp losses. On Friday, the Hang Seng reportedly had its worst day in nearly five years after Beijing moved to pass a controversial national security law, a blow to the financial hub's autonomy.China's foreign ministry commissioner in Hong Kong, Xie Fang, moved to reassure rattled investors on Monday evening. The legislation won't affect freedoms of speech, press, publication and assembly, Xie said, according to state-run news agency reports. He reportedly added that the controversial legislation will protect the law-based operation of international businesses in Hong Kong.

In economic news, Singapore cut its 2020 economic forecasts for the third time this year. The Singapore economy is now expected to shrink by between 4.0% and 7.0% this year, according to the country's Ministry of Trade and Industry.

In US, markets were closed on Monday for Memorial Day.

Domestic equity barometers came off the day's high in morning trade, tracking strength in other Asian stock markets. Sentiment improved as several countries across the globe have now moved to lift restrictions as early as next week. Private banks and FMCG stocks pushed the market higher. Telecom major Bharti Airtel dragged.

At 10:25 IST, the barometer index, the S&P BSE Sensex, was up 313.45 points or 1.02% at 30,986.04. The Nifty 50 index added 96.45 points or 1.07% at 9,135.70.

In the broader market, the S&P BSE Mid-Cap index rose 0.87% while the S&P BSE Small-Cap index gained 0.58%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1059 shares rose and 681 shares fell. A total of 137 shares were unchanged. In the Nifty 50 index, 41 shares advanced while 9 stocks declined.

Bharti Airtel fell 3.40% to Rs 572.85 on the BSE after the counter witnessed block deals in early trade today, 26 May 2020.

On the BSE, the counter clocked a volume of 16.39 crore shares as against its average trading volume of 6.06 lakh shares in the past one quarter. The stock fell 5.38% to hit a low of Rs 561.10 on BSE in early trade today. On the NSE, the counter clocked a volume of 3.13 crore shares compared with its average trading volume of 1.75 crore shares in the past one quarter. The stock fel 4.11% to hit a low of Rs 568.60 on NSE in early trade today.

The media reported on Monday (25 May 2020) that Bharti Telecom, promoter of Bharti Airtel, will sell $1 billion worth of stake in the mobile operator through a block deal on Tuesday. The block deal involving 2.75% stake sale would be conducted at around Rs 558 per share. The floor price marks a discount of 5.90% to the company's stock price of Rs 593 on Friday. The move will reportedly help the telecom major in becoming debt free. Bharti Telecom held 38.79% stake in Bharti Airtel as on 31 March 2020.

Buzzing Index:

The Nifty Private Bank index rose 1.91% to 9,601.20, amid value buying. The index had lost 3.51% in the past two sessions.

IndusInd Bank (up 3.52%), HDFC Bank (up 3.39%), RBL Bank (up 2.14%), ICICI Bank (up 1.85%), Axis Bank (up 1.75%), Federal Bank (up 1.47%), Bandhan Bank (up 1.03%), City Union Bank (up 0.55%), Yes Bank (up 0.38%) and Kotak Mahindra Bank (up 0.01%) advanced.

Meanwhile, DCB Bank fell 2.65% to Rs 58.85. The bank's net profit fell 28.6% to Rs 68.76 crore on 9.2% rise in total income to Rs 1011.79 crore in Q4 March 2020 over Q4 March 2019.

Net interest income rose by 7.6% to Rs 324 crore in Q4 FY20 from Rs 301 crore in Q4 FY19. Profit before tax (PBT) stood at Rs 93.84 crore in Q4 FY20, down by 37.6% from Rs 150.50 crore in Q4 FY19. Both FY20 and Q4 2020 profit before tax were impacted by Rs 63 crore COVID-19 regulatory package provision. The bank conservatively made more provision than required as per guidelines, the bank said in a statement.

Provisions and contingencies surged 239.97% to Rs 118.24 crore in Q4 March 2020 from Rs 34.78 crore in Q4 March 2019. Provision coverage ratio stood at 70.81% as on 31 March 2020 as against 78.77% as on 31 March 2019.

Gross non-performing assets (NPAs) stood at Rs 631.51 as on 31 March 2020 as against Rs 552.03 crore as on 31 December 2019 and Rs 439.48 crore as on 31 March 2019. The ratio of gross NPAs to gross advances stood at 2.46% as on 31 March 2020 as against 2.15% as on 31 December 2019 and 1.84% as on 31 March 2019. The ratio of net NPAs to net advances stood at 1.16% as on 31 March 2020 as against 1.03% as on 31 December 2019 and 0.65% as on 31 March 2019.

The bank's deposits rose 6.8% to Rs 30,370 crore as on 31 March 2020 from Rs 28,435 crore as on 31 March 2019. CASA ratio stood at 21.47% as on 31 March 2020 compared with 23.95% as on 31 March 2019. Net advances increased 7.5% to Rs 25,345 crore as on 31 March 2020 from Rs 23,568 crore as on 31 March 2019.

Q4 Results Today:

Torrent Pharmaceuticals (down 0.08%), Deepak Nitrite (up 1.47%), Max Financial Services (down 0.23%), Blue Dart (up 1.66%), Coromandel International (up 1.48%), Praj Industries (up 0.9%), V.I.P Industries (up 0.92%) and Wonderla Holidays (down 0.67%) are some of the companies that will announce their quarterly results today.

Earnings Impact:

Avenue Supermarts tumbled 4.94% to Rs 2283.95. The company's net profit jumped 41.61% to Rs 271 crore on 23.6% increase in to Rs 6,256 crore in Q4 March 2020 over Q4 March 2019. Consolidated EBITDA rose 12.1% to Rs 417 crore in Q4 FY20 from Rs 372 crore in Q4 FY19. EBITDA margin stood at 6.7% in Q4 March 2020, lower than 7.4% in Q4 March 2019.

The company said its overall revenue during the month of March 2020 grew by just 11% over March 2019 due to the lockdown effect of the last 9 days of March this year. The trend rapidly deteriorated in April during which more than half of its stores remaining closed for operations or operating for extremely restricted hours.

Our revenue for April was down by more than 45% as compared to April 2019. Our margins have also seen erosion as regulations did not permit us to sell any apparel and general merchandise products, the company said in the release.

Significantly large EBITDA declines are to be expected due to lower sales, lower gross margins, higher cost of operations on account of hardship allowance to front line staff during lockdown and higher personal hygiene/store sanitation costs, it added.

GMM Pfaudler slumped 7.49% to Rs 3601.20. The firm's net profit declined 13% to Rs 11.60 crore on 5.28% decline in net sales to Rs 131.78 crore in Q4 March 2020 over Q4 March 2019. EBITDA improved 14% to Rs 22.5 crore in Q4 FY20 from Rs 19.8 crore in Q4 FY19. EBITDA margin stood at 17% in Q4 FY20, higher than 14% in Q4 FY19.

COVID-19 began impacting our normal business operations on 14th March 2020 by affecting our supply chain and our ability to ship ready equipment to our customers, our production eventually shut down completely on March 23rd, 2020. All in all, additional revenue that could have been recognized in the last quarter in a normal business environment is estimated to be Rs 300 million, the company said in a statement.

Indian stock markets are trading higher in early trade as trading resumed after a long weekend. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 231.01 points or 0.75% at 30,903.60. The Nifty 50 index was up 73.20 points or 0.81% at 9,112.45. Positive Asian stocks boosted sentiment.

The S&P BSE Mid-Cap index was up 0.58%. The S&P BSE Small-Cap index was up 0.34%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 823 shares rose and 404 shares fell. A total of 95 shares were unchanged.

Stocks in news:

Bharti Airtel dropped 3.54% to Rs 572. Promoters are likely to sell $1 billion worth of shares in the company, as per reports. Bharti Telecom will sell shares via a block deal today, 26 May 2020. Promoters are going to sell nearly 15 crore shares at around Rs 558 per share. After the block deal, stake held by the promoters of Bharti Airtel will fall to 56.23% from 58.98%.

HDFC rose 0.69%. The company's standalone net profit declined 22% to Rs 2232.53 crore on 3.41% rise in total income to Rs 11,981.66 crore in Q4 March 2020 over Q4 March 2019. Profit before tax (PBT) for the quarter stood at Rs 2692.44 crore, down by 27% from Rs 3690.89 crore in the corresponding quarter of the previous year.

Current tax expense for the March quarter declined 42.20% to Rs 541.66 crore in Q4 March 2020 from Rs 937.11 crore in Q4 March 2019. Dividend income slumped to Rs 2.08 crore in Q4 FY20 from Rs 536.88 crore in Q4 FY19. With dividend distribution tax being abolished, some of the subsidiary company did not pay interim dividend, HDFC said.

Bosch fell 1.29% after consolidated net profit slumped 80.4% to Rs 80.91 crore on 18.1% decline in net sales to Rs 2236.87 crore in Q4 March 2020 over Q4 March 2019. The decline is due to the reduced turnover following the market slowdown and the impact of the coronavirus pandemic during the last few days of the quarter, the company said in a statement.

Avenue Supermarts lost 3.94%. Consolidated net profit jumped 41.61% to Rs 271 crore on 23.6% increase in total revenue to Rs 6,256 crore in Q4 March 2020 over Q4 March 2019.

ITC advanced 3.89%. On Saturday, 23 May 2020, ITC entered into a share purchase agreement (SPA) to acquire 100% stake of Sunrise Foods (SFPL), which is engaged in the business of spices under the trademark 'Sunrise'.

Maruti Suzuki India rose 1.18%. The company informed that Suzuki Motor Gujarat would re-start production of vehicles from 25 May 2020, strictly in accordance with the Government regulations and guidelines. Suzuki Motor Gujarat manufactures cars on a contract basis for Maruti Suzuki India.

Eicher Motors rose 2.72%. Eicher Motors on Monday (25 May 2020) said that its board will on 12 June 2020 consider sub-division of the equity shares of face value of Rs 10 each.

UPL rose 1.32%. The company's consolidated net profit soared 147% to Rs 617 crore on 30.7% rise in net sales to Rs 11,141 crore in Q4 March 2020 over Q4 March 2019.

JSW Steel surged 4.54%. On a consolidated basis, JSW Steel reported 87.4% slump in net profit to Rs 188 crore on 19.6% decline in net sales to Rs 17,556 crore in Q4 March 2020 over Q4 March 2019. The profit was impacted due to an exceptional item of Rs 805 crore. This was on account of impairment provision of Rs 725 crore for the iron ore mining operations at Chile and Rs 80 crore towards retirement of certain fixed assets in India in its consolidated results.

Global Markets:

Overseas, Asian stocks are trading higher on Tuesday as investors looked to a re-opening world economy.

Meanwhile, American biotech firm Novavax said Monday it started the first human study of its experimental coronavirus vaccine. The firm said it expects initial results on safety and immune responses in July.

Japanese Prime Minister Shinzo Abe announced Monday that the state of emergency will be lifted in the last five of the country's 47 prefactures.

In economic news, Singapore cut its 2020 economic forecasts for the third time this year. The Singapore economy is now expected to shrink by between 4.0% and 7.0% this year, according to the country's Ministry of Trade and Industry.

In US, markets were closed on Monday for Memorial Day. U.S. stock benchmarks ended little changed on Friday as investors looked ahead to a three-day weekend. The S&P 500 rose 0.2% to 2,955.45 while the Dow Jones Industrial Average slipped 8.96 points, or less than 0.1%, to 24,465.16. The Nasdaq Composite, rose 0.4% to 9,324.59.

Back home, stock markets were shut on Monday on account of Id-Ul-Fitr (Ramzan Id). Key domestic benchmarks corrected on Friday, snapping their three-day rising streak. Weak global cues and rising COVID-19 cases in Indian triggered selling. Shares of banks and financial firms tumbled after the central bank extended loan moratorium by three more months. RBI Governor's projection of a likely negative GDP growth in FY21 further impacted sentiment. The barometer S&P BSE Sensex fell 260.31 points or 0.84% at 30,672.59. The Nifty 50 index lost 67 points or 0.74% at 9,039.25.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,353.90 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 344.16 crore in the Indian equity market on 22 May, provisional data showed.

In the broader market, the S&P BSE Mid-Cap index was down 0.8% while the S&P BSE Small-Cap index was down 0.26%.

The market breadth was negative. On the BSE, 823 shares rose and 1339 shares fell. A total of 151 shares were unchanged. In the Nifty 50 index, 23 shares advanced while 27 stocks declined.

RBI Decision:

The Reserve Bank of India (RBI)'s Governor Shaktikanta Das briefed the media at 10 am today. RBI further extended the loan repayment moratorium for another three months up to 31 August. The EMI payments will restart only once the moratorium period expires on 31 August.

Das said that the GDP growth in India in 2020-21 is estimated to remain in the negative territory with a pick up in growth impulses in second half. However, these depend on the trajectory of the pandemic.

The RBI also raised the group exposure limit of banks to 30% from 25% for a temporary period till 30 June 2021. Group exposure limit determines the maximum amount a bank can lend to one business house. The central bank relaxed rules governing borrowing by states to help them meet their own liabilities and expenditure requirements. In order to ease the pressures of bond redemption on states, rules governing withdrawal from consolidated sinking fund (CSF) have been eased. CSF is maintained by the state governments with the RBI as a buffer for repayment of their liabilities. This change in withdrawal norms will come into force with immediate effect and will remain valid till 31 March 2021.

RBI Monetary Policy Committee (MPC) Friday unanimously decided to slash the Repo Rate by another 40 basis points to 4%. The interest rate decision was taken to revive growth and mitigate the impact of the coronavirus pandemic. The announcement came following a three-day off-cycle meeting of the MPC, held between 20 and 22 May 2020. These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/-2%, while supporting growth.

The MPC is of the view that the macroeconomic impact of the pandemic is turning out to be more severe than initially anticipated, and various sectors of the economy are experiencing acute stress. The impact of the shock has been compounded by the interaction of supply disruptions and demand compression. Beyond the destruction of economic and financial activity, livelihood and health are severely affected. Even as various measures initiated by the government and the Reserve Bank of India work to mitigate the adverse impact of the pandemic on the economy, it is necessary to ease financial conditions further. This will facilitate the flow of funds at affordable rates and revive animal spirits. With the inflation outlook remaining benign as lockdown-related supply disruptions are mended, the policy space to address growth concerns needs to be used now rather than later to support the economy, even while maintaining headroom to back up the revival of activity when it takes hold.

Numbers to Track:

The yield on 10-year benchmark federal paper fell to 5.965% compared with previous closing of 6.034% in the previous trading session.

In the foreign exchange market, the partially convertible rupee edged lower to 75.95 compared with its previous closing of 75.615.

In the commodities market, Brent crude for July 2020 settlement was down $1.92 to $34.14 a barrel. The contract rose 0.87% to settle at $36.06 a barrel in the previous trading session.

MCX Gold futures for 5 June 2020 settlement gained 1.43% to Rs 47,050.

Buzzing Index:

The Nifty Metal index declined 1.85% to 1,710.60, snapping its three-day losing streak. The index rose 3% in three trading sessions.

Jindal Steel & Power (down 3.88%), Hindalco Industries (down 3.71%), JSW Steel (down 2.83%), National Aluminium Company (down 2.68%), Steel Authority of India (down 2.67%), NMDC (down 2.63%), Tata Steel (down 2.57%), Hindustan Zinc (down 2.39%) and Vedanta (down 1.33%) declined.

Stocks in Spotlight:

Info Edged (India) was down 2.59%. The tech firm announced that its investment vehicle, IE Venture Fund I, will invest about Rs 3.5 crore in Fanbuff Esports India and Rs 3.70 crore in Intellihealth Solutions. Fanbuff Esports India operates e-sports community engagement platform Fanclash, and the Intellihealth Solutions operates telehealth platform Truemeds. The IE Venture Fund will acquire 3,077 series seed compulsorily convertible preference shares at a face value of Rs 10 and a premium of Rs 11,364.70. The aggregate shareholding of IE Venture Fund I, post this investment, in Fanclash would be 20% on a fully converted & diluted basis. Fanclash is an online e-sports focused engagement and community platform. E-sports fans can watch, play, follow various games like Free Fire, PUBG, Counter Strike and engage with their favorite esports players and streamers on the platform.

Bandhan Bank dropped 5.95% to Rs 198.20 after the bank said that that the business of around 65,000 of micro banking borrowers, amounting to exposure of approximately Rs 260 crore, could be impacted due to the Amphan cyclone. Cyclone Amphan struck five districts in southern West Bengal and northern coastal Odisha starting in the afternoon of 20 May and lasting till the wee hours of the morning of 21 May. As per the initial assessment, 49 banking units (micro banking outlets) in five districts were impacted, of which 45 have resumed operations today, Bandhan Bank said in a filing. It further informed that the bank will not be able to continue services in five branches due to issues in accessibility. Bandhan Bank said it expects the Amphan affected portfolio to regularise by Q3 of FY21.

Banks and financial stocks tumbled after the Reserve Bank of India (RBI) governor Shaktikanta Das further extended the loan repayment moratorium for another three months up to 31 August. The EMI payments will restart only once the moratorium period expires on 31 August.

Das said that the GDP growth in India in 2020-21 is estimated to remain in the negative territory with a pick up in growth impulses in second half. However, these depend on the trajectory of the pandemic.

In the broader market, the S&P BSE Mid-Cap index was down 1.06% while the S&P BSE Small-Cap index shed 0.43%.

The market breadth was negative. On the BSE, 798 shares rose and 1270 shares fell. A total of 143 shares were unchanged. In the Nifty 50 index, 19 shares advanced while 31 stocks declined.

Foreign portfolio investors (FPIs) sold shares worth Rs 258.73 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 401.78 crore in the Indian equity market on 21 May, provisional data showed.

RBI Decision:

The Reserve Bank of India (RBI)'s Governor Shaktikanta Das briefed the media at 10 am today. Besides extending the loan repayment moratorium for another three months up, the RBI also raised the group exposure limit of banks to 30% from 25% for a temporary period till 30 June 2021. Group exposure limit determines the maximum amount a bank can lend to one business house.

RBI Monetary Policy Committee (MPC) Friday unanimously decided to slash the Repo Rate by another 40 basis points to 4%. The interest rate decision was taken to revive growth and mitigate the impact of the coronavirus pandemic. The announcement came following a three-day off-cycle meeting of the MPC, held between 20 and 22 May 2020.

On the basis of an assessment of the current and evolving macroeconomic situation, MPC decided to reduce the policy repo rate under the liquidity adjustment facility (LAF) by 40 bps to 4% with immediate effect. Accordingly, the marginal standing facility (MSF) rate and the Bank Rate stand reduced to 4.25% from 4.65%. The reverse repo rate under the LAF stands reduced to 3.35% from 3.75%. The MPC also decided to continue with the accommodative stance as long as it is necessary to revive growth and mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target.

These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/-2%, while supporting growth.

The MPC is of the view that the macroeconomic impact of the pandemic is turning out to be more severe than initially anticipated, and various sectors of the economy are experiencing acute stress. The impact of the shock has been compounded by the interaction of supply disruptions and demand compression. Beyond the destruction of economic and financial activity, livelihood and health are severely affected. Even as various measures initiated by the government and the Reserve Bank of India work to mitigate the adverse impact of the pandemic on the economy, it is necessary to ease financial conditions further. This will facilitate the flow of funds at affordable rates and revive animal spirits. With the inflation outlook remaining benign as lockdown-related supply disruptions are mended, the policy space to address growth concerns needs to be used now rather than later to support the economy, even while maintaining headroom to back up the revival of activity when it takes hold.

The Central Bank also relaxed rules governing borrowing by states to help them meet their own liabilities and expenditure requirements. In order to ease the pressures of bond redemption on states, rules governing withdrawal from consolidated sinking fund (CSF) have been eased. CSF is maintained by the state governments with the RBI as a buffer for repayment of their liabilities. This change in withdrawal norms will come into force with immediate effect and will remain valid till 31 March 2021.

Gainers &Losers:

Zee Entertainment (up 2.96%), Asian Paints (up 2.46%), Infosys (up 2.42%), Bharat Petroleum Corporation (up 1.63%) and Bharti Infratel (up 1.53%) were top gainers in Nifty 50 index.

Bajaj Finserv (down 6.67%), Bajaj Finance (down 5.42%), HDFC (down 5.37%), ICICI Bank (down 4.94%) and Axis Bank (down 4.34%) were top losers in Nifty 50 index.

Q4 Results Today:

JSW Steel (down 2.92%), UPL (up 0.67%), Trent (down 2.9%), Wabco India (up 1.86%), IDFC First Bank (down 1.06%), Honeywell Automation India (up 0.57%), Godrej Industries (up 0.35%), Essel Propack (up 1.67%), Bosch (up 0.1%), Birla Corporation (up 1.59%), Bayer Cropscience (up 1.25%), Basf India (up 1.91%), Neuland Laboratories (up 0.07%) and Supreme Industries (up 2.66%) are some of the companies that will announce their quarterly earnings today.

Earnings Impact:

Quick Heal Technologies slumped 9.68%. The IT security services provider's consolidated net profit declined 71.2% to Rs 7.99 crore on a 25.3% fall in net sales to Rs 64.25 crore in Q4 March 2020 over Q4 March 2019.

Hawkins Cookers tumbled 6.87% after the kitchenware maker's net profit slumped 30.6% to Rs 9.36 crore on 21% decline in net sales to Rs 145.97 crore in Q4 March 2020 over Q4 March 2019. The company said that its operations were impacted due to the lockdown announced by the government in March 2020 and most of April 2020. Both sales and production have partially resumed in May 2020, it added.

VST Industries rose 1.54%. The tobacco products manufacturer's net profit rose 33.15% to Rs 70.61 crore on 7.2% rise in total income to Rs 303.81 crore in Q4 March 2020 over Q4 March 2019. The board of directors recommended a final dividend of Rs 103 per equity share. The announcement was made after market hours yesterday, 21 May 2020

Global Markets:

European markets opened lower while Asian shares were trading with steep losses after China published a draft law proposal that could spell the effective end of Hong Kong's special status, risking further civil disorder. Hong Kong's Hang Seng index plunged nearly 6%.

China is poised to impose a new national security law on Hong Kong after months of anti-government protests in the territory. The move has sparked concerns the law will give Beijing more control over Hong Kong and incite further pro-democracy protests.

Details of the draft legislation were announced Friday when China's National People's Congress (NPC) — the country's parliament — held its annual session. The laws would reportedly ban secession, foreign interference, terrorism and all seditious activities aimed at toppling the central government and any external interference in the former British colony.

In US, Wall Street ended lower on Thursday, on a fresh wave of China-US tensions that raised doubts about the trade deal reached early this year between the world's two largest economies.

The losses also came amid data that showed jobless claims reached 2.4 million for the week that ended on Saturday because of the coronavirus pandemic. The latest data pushed the figure's nine-week total to nearly 39 million, surpassing the 37 million Americans who filed for unemployment insurance during the 18-month Great Recession.

Markets were on the back foot after the Senate passed a bill aiming to delist Chinese companies from American exchanges. The Senate passed a bill aiming to delist Chinese companies from American exchanges. Lawmakers and the White House have repeatedly raised concerns about US-listed firms that may be under Chinese government control or receiving capital from state funds.

That measure was passed after President Donald Trump said in a tweet that the incompetence of China caused this mass Worldwide killing, referring to the coronavirus.

The market barometers continued to trade with significant losses in early afternoon trade. At 12:27 IST, the barometer index, the S&P BSE Sensex, was down 276.04 points or 0.89% at 30,656.86. The Nifty 50 index was down 95.05 points or 1.04% at 9,011.20.

Financial stocks tumbled after the RBI governor Shaktikanta Das further extended the loan repayment moratorium for another three months up to 31 August. The EMI payments will restart only once the moratorium period expires on 31 August.

RBI also announced a 40 basis points rate cut in an off-cycle MPC meeting. The repo rate stands at 4% and the reverse repo rate now stands at 3.35%. The central bank also maintained its 'accommodative' stance.

Das said that the GDP growth in India in 2020-21 is estimated to remain in the negative territory with a pick up in growth impulses in second half. However, these depend on the trajectory of the pandemic.

The RBI also raised the group exposure limit of banks to 30% from 25% for a temporary period till 30 June 2021. Group exposure limit determines the maximum amount a bank can lend to one business house.

The central bank also relaxed rules governing borrowing by states to help them meet their own liabilities and expenditure requirements. In order to ease the pressures of bond redemption on states, rules governing withdrawal from consolidated sinking fund (CSF) have been eased. CSF is maintained by the state governments with the RBI as a buffer for repayment of their liabilities. This change in withdrawal norms will come into force with immediate effect and will remain valid till 31 March 2021.

In the broader market, the S&P BSE Mid-Cap index was off 0.69% while the S&P BSE Small-Cap index shed 0.27%.

The market breadth was negative. On the BSE, 766 shares rose and 1212 shares fell. A total of 132 shares were unchanged. In the Nifty 50 index, 17 shares advanced while 33 stocks declined.

Buzzing Index:

The Nifty Financial Services index slipped 2.93% to 8,663.25, extending losses for second day. The index has lost 3.56% in two sessions.

Shriram Transport (down 5.32%), Bajaj Finance (down 4.93%), Axis Bank (down 4.77%), Mahindra & Mahindra Financial (down 4.81%), Bajaj Finserv (down 4.53%), ICICI Bank (down 4.48%), HDFC (down 4.4%), Power Finance Corporation (down 3.73%), Indiabulls Housing Finance (down 3.82%), Cholamandalam (down 3.5%), ICICI Prudential Life Insurance (down 3.06%), Edelweiss Financial (down 2.8%), REC (down 1.97%), HDFC Bank (down 1.67%), Kotak Mahindra Bank (down 1.4%), ICICI Lombard (down 0.59%) and SBI (down 0.33%) declined.

SBI Life Insurance (up 0.63%), HDFC Life (up 0.95%) and Bajaj Holdings (up 2.37%) advanced.

Earnings Impact:

Quick Heal Technologies slumped 9.46% to Rs 104.75. The IT security services provider's consolidated net profit declined 71.2% to Rs 7.99 crore on a 25.3% fall in net sales to Rs 64.25 crore in Q4 March 2020 over Q4 March 2019.

Hawkins Cookers tumbled 7.14% to Rs 4220 after the kitchenware maker's net profit slumped 30.6% to Rs 9.36 crore on 21% decline in net sales to Rs 145.97 crore in Q4 March 2020 over Q4 March 2019. The company said that its operations were impacted due to the lockdown announced by the government in March 2020 and most of April 2020. Both sales and production have partially resumed in May 2020, it added.

VST Industries rose 1.76% to Rs 3,146.95. The tobacco products manufacturer's net profit rose 33.15% to Rs 70.61 crore on 7.2% rise in total income to Rs 303.81 crore in Q4 March 2020 over Q4 March 2019.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 1.51% to 33.485. The Nifty May 2020 futures were trading at 8,996.65, a discount of 14.55 points compared with the spot at 9,011.20.

On the options front, the Nifty option chain for 28 May 2020 expiry showed maximum call open interest (OI) of 29.72 lakh contracts at the 10,000 strike price. Maximum put OI of 35.77 lakh contracts was seen at 9,000 strike price.

Key benchmark indices extended losses in mid-morning trade. At 11:28 IST, the barometer index, the S&P BSE Sensex, was down 346.39 points or 1.12% at 30,586.51. The Nifty 50 index was down 101.85 points or 1.12% at 9,004.40.

Banks and financial stocks tumbled after the RBI governor Shaktikanta Das further extended the loan repayment moratorium for another three months up to 31 August. The EMI payments will restart only once the moratorium period expires on 31 August.

RBI also announced a 40 basis points rate cut in an off-cycle MPC meeting. The repo rate stands at 4% and the reverse repo rate now stands at 3.35%. The central bank also maintained an 'accommodative' stance.

Das said that the GDP growth in India in 2020-21 is estimated to remain in the negative territory with a pick up in growth impulses in second half. However, these depend on the trajectory of the pandemic.

In the broader market, the S&P BSE Mid-Cap index was off 0.89% while the S&P BSE Small-Cap index shed 0.42%.

The market breadth was negative. On the BSE, 685 shares rose and 1167 shares fell. A total of 118 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 258.73 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 401.78 crore in the Indian equity market on 21 May, provisional data showed.

Axis Bank (down 4.91%), ICICI Bank (down 4.27%), HDFC (down 4.17%), Bajaj Finance (down 4.08%), IndusInd Bank (down 2.87%) and HDFC Bank (down 1.02%) were major losers.

Asian Paints (up 2.78%), TCS (up 0.96%), Tech Mahindra (up 0.82%), Titan Company (up 0.32%) and Hindustan Unilever (up 0.26%) bucked weak market trend.

Buzzing Index:

The Nifty IT index rose 1.24% to 13,817.80, extending gains for fifth day. The index has added 4.70% in five sessions.

MindTree (up 1.28%), Tech Mahindra (up 0.79%), TCS (up 0.32%), MphasiS (up 0.2%) and Wipro (up 0.05%) advanced.

Hexaware Technologies (down 1.78%), HCL Technologies (down 1.01%), Oracle Financial Services Software (down 0.61%), Persistent Systems (down 0.15%) declined.

Infosys rose 2.57% to Rs 689.25 after a class action lawsuit filed against the IT major and some of its employees in the United States District Court stands dismissed.

In October 2019, a class action lawsuit was filed in the United States District Court against Infosys and certain of its current and former officers. The complaint, which was filed in the Eastern District of New York, was brought on behalf of a class consisting of persons or entities who purchased the company's publicly traded securities between 7 July 2018 and 20 October 2019, and alleged claims for violations of the US federal securities laws. On 21 May 2020, the plaintiff voluntarily dismissed the lawsuit without prejudice.

The Schall Law Firm, a shareholder rights litigation firm based in Los Angeles, had filed the complaint alleging that CEO Salil Parekh skipped standard reviews of large deals to avoid accounting scrutiny.

After unveiling Q3 results in January 2020, Infosys announced conclusion of the independent investigation into allegations contained in the anonymous whistleblower complaints disclosed earlier. The audit committee determined that the allegations are substantially without merit. It concluded that no restatement of previously announced financial statements or other published financial information is warranted.

Stocks in Spotlight:

Reliance Industries (RIL) gained 1.15% to Rs 1,456.55. RIL said that KKR will invest Rs 11,367 crore into Jio Platforms. The transaction values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. RIL said this is KKR's largest investment in Asia and will translate into a 2.32% equity stake in Jio Platforms on a fully diluted basis.

Over the last one month, leading technology investors, such as Facebook, Silver Lake, Vista, General Atlantic and KKR have announced aggregate investments of Rs 78,562 crore into Jio Platforms. KKR is making the investment from its Asia private equity and growth technology funds.

Emami slipped 0.45% to Rs 209. Competition Commission of India (CCI) on Thursday said it has approved the proposed acquisition of Emami Cement by Nuvoco Vistas Corporation, which is a Nirma promoter group company. The proposed combination pertains to the acquisition of 100% of the total issued and paid up share capital of Emami Cement (ECL), on a fully diluted basis by Nuvoco Vistas Corporation (NVCL).

Global Markets:

Overseas, Asian stocks are trading lower on Friday with Hong Kong's Hang Seng index plunging nearly 6%.

China is poised to impose a new national security law on Hong Kong after months of anti-government protests in the territory. The move has sparked concerns the law will give Beijing more control over Hong Kong and incite further pro-democracy protests.

Details of the draft legislation were announced Friday when China's National People's Congress (NPC) — the country's parliament — held its annual session. The laws would reportedly ban secession, foreign interference, terrorism and all seditious activities aimed at toppling the central government and any external interference in the former British colony.

In US, Wall Street ended lower on Thursday, on a fresh wave of China-US tensions that raised doubts about the trade deal reached early this year between the world's two largest economies.

The losses also came amid data that showed jobless claims reached 2.4 million for the week that ended on Saturday because of the coronavirus pandemic. The latest data pushed the figure's nine-week total to nearly 39 million, surpassing the 37 million Americans who filed for unemployment insurance during the 18-month Great Recession.

Markets were on the back foot after the Senate passed a bill aiming to delist Chinese companies from American exchanges. The Senate passed a bill aiming to delist Chinese companies from American exchanges. Lawmakers and the White House have repeatedly raised concerns about US-listed firms that may be under Chinese government control or receiving capital from state funds.

That measure was passed after President Donald Trump said in a tweet that the “incompetence of China” caused “this mass Worldwide killing,” referring to the coronavirus.

The market reversed trend and hit fresh intraday low in morning trade. Trading turned volatile after the Reserve Bank of India (RBI) on Friday announced a surprise 40 basis points repo rate cut in an off-cycle policy review. The central bank also maintained an 'accommodative' stance.

At 10:32 IST, the barometer index, the S&P BSE Sensex, was down 285.59 points or 0.92% at 30,647.31. The Nifty 50 index was down 88.40 points or 0.97% at 9,017.85.

In the broader market, the S&P BSE Mid-Cap index was off 0.41% while the S&P BSE Small-Cap index was up 0.11%.

The market breadth was positive. On the BSE, 750 shares rose and 905 shares fell. A total of 115 shares were unchanged.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 51,02,573 far with 3,32,924 deaths. India reported 66,330 active cases of COVID-19 infection and 3,583 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

Buzzing Index:

The Nifty Bank index slipped 0.74% to 17,604.30 after RBI's Monetary Policy Committee (MPC) Friday unanimously decided to slash the repo rate by another 40 basis points to 4%.

RBI Governor Shaktikanta Das briefed the media at 10 am today. The interest rate decision was taken to revive growth and mitigate the impact of the coronavirus pandemic. The announcement came following a three-day off-cycle meeting of the MPC, held between 20 and 22 May 2020.

Bandhan Bank (down 4.89%), Federal Bank (down 3.3%), ICICI Bank (down 3.14%), Axis Bank (down 2.95%), IndusInd Bank (down 2.44%), HDFC Bank (down 2.4%), Kotak Mahindra Bank (down 1.97%), RBL Bank (down 1.88%), State Bank of India (down 0.82%), Punjab National Bank (down 0.74%) and IDFC First Bank (down 0.53%) declined.

Following the rate cut, the yield on 10-year benchmark federal paper fell 1.76% to 5.928 compared with previous closing of 6.034 in the previous trading session.

Q4 Results Today:

JSW Steel (down 1.27%), UPL (up 0.93%), Trent (up 1.24%), Wabco India (up 2.32%), IDFC First Bank (up 1.85%), Honeywell Automation India (up 2.21%), Godrej Industries (up 0.43%), Essel Propack (up 1.59%), Bosch (up 0.96%), Birla Corporation (up 1.59%), Bayer Cropscience (up 1.25%), Basf India (up 1.91%) and Supreme Industries (up 2.66%) are some of the companies that will announce their quarterly earnings today.

Local stocks are trading lower in early trade after logging gains in the prior three trading sessions. At 9:20 IST, the barometer index, the S&P BSE Sensex, was down 115.62 points or 0.37% at 30,817.28. The Nifty 50 index was down 34.20 points or 0.38% at 9,072.05.

The S&P BSE Mid-Cap index was off 0.17%. The S&P BSE Small-Cap index was up 0.24%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 512 shares rose and 442 shares fell. A total of 58 shares were unchanged.

Cues to watch:

Reserve Bank of India (RBI) governor Shaktikanta Das will address a press conference today at 10:00 IST. This will be third presser of the governor in the context of COVID-19 related measures in last two months. As per reports, the governor may announce an extension of the loan moratorium for term loans for a few more months in the backdrop of extension of the nationwide lockdown till May 31. Secondly, the governor could announce the continuation of the liquidity support measures for banks to lend to Non-banking finance companies and small industrial units in view of the prolonged stress in the economy. The governor may also comment on the recent economic package announced by the government to counter the Covid-impact in the economy.

Stocks in news:

Reliance Industries (RIL) rose 0.68%. RIL and Jio Platforms announced today that KKR will invest Rs 11,367 crore into Jio Platforms. This transaction values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. This is KKR's largest investment in Asia and will translate into a 2.32% equity stake in Jio Platforms on a fully diluted basis. Over the last month, leading technology investors, such as, Facebook, Silver Lake, Vista, General Atlantic and KKR have announced aggregate investments of Rs 78,562 crore into Jio Platforms. Jio Platforms is a wholly-owned subsidiary of Reliance Industries.

Bajaj Holdings & Investment fell 1.3%. The company's consolidated net profit dropped 54.34% to Rs 361.41 crore on 25.21% fall in total income to Rs 636.57 crore in Q4 March 2020 over Q4 March 2019.

VST Industries gained 3.74% after net profit rose 33.15% to Rs 70.61 crore on 7.2% rise in total income to Rs 303.81 crore in Q4 March 2020 over Q4 March 2019.

Quick Heal Technologies slumped 9.03% after consolidated net profit dropped 71.21% to Rs 7.99 crore on 23.3% fall in total income to Rs 72.50 crore in Q4 March 2020 over Q4 March 2019.

Automotive Axles advanced 4.16%. Automotive Axles said that the company has resumed offices and manufacturing locations at Jamshedpur with effect from 20 May 2020 and at Hosur with effect from 6 May 2020 with all precautionary measures including the safe distancing and criteria's as per the government norms.

Global Markets:

Overseas, Asian stocks are trading lower on Friday as tensions between the US and China rise. Hong Kong's Hang Seng index led losses among the region's major markets as it plunged over 3%. The moves came after reports surfaced Thursday that China is planning national security laws for Hong Kong, after the city was plunged into turmoil by pro-democracy protests last year that periodically degenerated into violence. The laws would reportedly ban secession, foreign interference, terrorism and all seditious activities aimed at toppling the central government and any external interference in the former British colony.

In US, Wall Street ended lower on Thursday, on a fresh wave of China-US tensions that raised doubts about the trade deal reached early this year between the world's two largest economies.

Stocks traded under pressure for most of the session as President Donald Trump tweeted late Wednesday that China's “disinformation and propaganda attack on the United States and Europe is a disgrace,” while the White House issued a broad attack on Beijing's economic policies, military buildup, and human rights violations.

Back home, the market ended with decent gains on Thursday, extending its winning run for the third straight session. The barometer S&P BSE Sensex rose 114.29 points or 0.37% at 30,932.90. The Nifty 50 index rose 39.70 points or 0.44% at 9,106.25.

Foreign portfolio investors (FPIs) sold shares worth Rs 258.73 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 401.78 crore in the Indian equity market on 21 May, provisional data showed.