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Market gains for 2nd day; banks shares rebound
(15:35, 20 May 2020)

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Domestic-shares-rallied-on-Wednesday,-supported-by-firmness-in-banks-shares.-The-Nifty-Bank-index-snapped-its-four-day-losing-streak.-As-per-provisional-closing,-the-barometer-S&P-BSE-Sensex-jumped-622.44-points-or-2.06%-at-30,818.61.-The-Nifty-50-index-gained-206.25-points-or-2.32%-at-9,085.35.

The-Nifty-opened-higher-at-8,889.15.-The-index-pared-gains-and-hit-the-day's-low-of-8,875.35-in-mid-morning-trade.-The-index-trade-sideways-for-most-part-of-the-day.-Sudden-buying-support-in-mid-afternoon-trade-catapulted-the-index-to-the-day's-high-of-9,093.80.-

The-broader-market-traded-higher.-The-S&P-BSE-Mid-Cap-index-was-up-1.49%-while-the-S&P-BSE-Small-Cap-index-rose-1.13%.

The-market-breadth-was-positive.-On-the-BSE,-1290-shares-rose-and-1025-shares-fell.-A-total-of-171-shares-were-unchanged.

Sentiment-got-a-boost-after-the-country's-finance-minister-Nirmala-Sitharaman-reportedly-said-the-government-remains-open-to-more-economic-measures-as-and-when-needed.-

Sitharaman-on-Sunday-(17-May)-announced-the-fifth-and-final-tranche-of-economic-stimulus-package-to-deal-with-the-economic-fallout-of-the-COVID-19-pandemic.-The-booster-measures-announced-on-Sunday-related-to-MGNREGS,-healthcare-and-education,-businesses,-de-criminalisation-of-the-Companies-Act,-ease-of-doing-business,-public-sector-enterprises,-and-resources-related-to-state-governments.-The-government,-in-its-first-four-tranches-of-the-stimulus-package,-focussed-on-addressing-the-land,-labour,-liquidity,-and-laws.-

Stock-in-Spotlight:

Index-major-Reliance-Industries-(RIL)-rose-1.96%-to-₹-1435.30-as-the-company's-rights-issue-opened-today,-20-May-2020.-The-rights-issue-valued-at-₹-53,125-crore,-will-be-open-for-subscription-today-and-it-will-close-on-3-June.-All-eligible-shareholders-as-per-record-date-of-14-May-are-entitled-to-subscribe-to-the-fresh-issue.-RIL-will-issue-42,26,26,894-equity-shares-as-part-of-the-rights-issue.-The-company-will-offer-existing-shareholders-one-new-share-for-15-held-at-a-discounted-price-of-₹-1,257.

Buzzing-Index:

The-Nifty-Bank-index-was-up-1.8%-to-17,801.85.-The-index-rebounded-after-falling-as-much-as-0.45%-at-the-day's-low-of-17,407.70.-The-index-slumped-11%-in-the-past-four-trading-session.

HDFC-Bank-(up-2.94%),-Kotak-Mahindra-Bank-(up-2.23%),-Federal-Bank-(up-2.09%),-Axis-Bank-(up-2.06%),-RBL-Bank-(up-1.78%),-ICICI-Bank-(up-1.57%),-Bandhan-Bank-(up-0.61%),-Bank-of-Baroda-(up-0.55%)-and-State-Bank-of-India-(up-0.49%)-were-top-gainers.

Q4-Results-Today:

Bajaj-Auto-(up-1.91%),-Jubilant-Foodworks-(up-0.36%),-Ajanta-Pharma-(up-2.3%),-GHCL-(up-1.18%),-JK-Lakshmi-Cement-(up-1.49%),-Kalpataru-Power-Transimission-(down-0.29%)-and-Strides-Pharma-Science-(up-3.18%)-are-some-of-the-companies-that-will-announce-their-quarterly-res-ult-today.

Earnings-Impact:

Dr-Reddy's-Laboratories-jumped-4.8%-after-consolidated-net-profit-jumped-76%-to-₹-764.20-crore-on-a-10%-rise-in-revenues-to-₹-4431.80-crore-in-Q4-March-2020-over-Q4-March-2019.-EBITDA-jumped-13.54%-to-₹-1,001.3-crore-in-Q4-FY20-from-₹-881.90-crore-in-Q4-FY19.-EBITDA-margins-stood-at-22.6%-in-Q4-March-2020-as-compared-to-22%-in-Q4-March-2019.-Profit-before-income-tax-stood-at-₹-714.2-crore-in-Q4-FY20,-up-by-22%-from-₹-585.1-crore-in-Q4-FY20.-Consolidated-net-profit-rose-4%-to-₹-1,949.80-crore-on-a-13%-rise-in-revenues-to-₹-17,460-crore-in-in-the-year-ended-March-2020-(FY20)-as-against-the-year-ended-March-2020-(FY19).-Profit-before-income-tax-stood-at-₹-1,803.20-crore-in-FY20,-down-by-20%-from-₹-2,244.3-crore-reported-in-FY19.

Bajaj-Finance-gained-1.22%.-The-NBFC-major's-consolidated-net-profit-declined-19%-to-₹-948-crore-on-36%-increase-in-total-income-to-₹-7,231-crore-in-Q4-March-2020-over-Q4-March-2019.-On-a-consolidated-basis,-profit-before-tax-(PBT)-stood-at-₹-1,278-crore-in-Q4-FY20,-down-by-29%-from-₹-1,812-crore-reported-in-Q4-FY19.-Net-interest-income-jumped-38%-to-₹-4,684-crore-in-Q4-FY20-over-Q4-FY19.-New-loans-booked-during-Q4-FY20-increased-by-3%-to-6.03-million-from-5.83-million-in-Q4-FY19.

Loan-losses-and-provisions-for-Q4-FY20-was-₹-1,954-crore-as-against-₹-409-crore-in-Q4-FY19.-During-the-quarter,-the-company-has-taken-an-accelerated-charge-of-₹-390-crore-for-two-identified-large-accounts,-an-additional-provision-of-₹-129-crore-on-account-of-recalibration-of-its-ECL-model-and-a-contingency-provision-of-₹-900-crore-for-COVID-19.-Adjusted-for-these-additional-provisions-of-₹-1,419-crore,-loan-losses-and-provisions-for-Q4-FY20-was-₹-535-crore.

Ujjivan-Small-Finance-Bank-surged-3.95%-after-net-profit-rose-14.7%-to-₹-73.15-crore-on-34.4%-rise-in-total-income-to-₹-809.65-crore-in-Q4-March-2020-over-Q4-March-2019.-Net-interest-income-(NII)-jumped-46%-to-₹-466-crore-in-Q4-FY20-over-Q4-FY19.-Net-interest-margin-(NIM)-stood-at-11.2%-in-Q4-March-2020-as-compared-to-10.8%-in-Q4-March-2019.-The-bank's-gross-non-performing-assets-(NPAs)-stood-at-₹-137.14-crore-as-on-31-March-2020-as-against-₹-129.45-crore-as-on-31-December-2019-and-₹-97.85-crore-as-on-31-March-2019.-The-ratio-of-gross-NPAs-to-gross-advances-stood-at-0.97%-as-on-31-March-2020-as-against-0.95%-as-on-31-December-2019-and-0.92%-as-on-31-March-2019.-The-bank's-provisions-and-contingencies-stood-at-₹-96.88-crore-in-Q4-March-2020,-almost-seven-times-compared-to-₹-12.37-crore-in-Q4-March-2019.-The-bank-has-made-total-provision-of-₹-70-crore-for-COVID-19-as-on-31-March-2020,-out-of-which-₹-48.97-crore-is-in-respect-of-accounts-in-default-but-standard-against-the-potential-impact-of-COVID-19.-The-bank-clarified-that-provisions-held-are-in-excess-of-the-RBI-prescribed-norms.

Larsen-&-Toubro-Infotech-rallied-6.94%-after-consolidated-net-profit-jumped-13.49%-to-₹-427.50-crore-on-a-7.14%-increase-in-net-sales-to-₹-3,011.90-crore-in-Q4-March-2020-over-Q3-December-2019.-Consolidated-profit-before-tax-rose-10.32%-to-₹-551.40-crore-in-Q4-March-2020-as-against-₹-499.80-crore-in-Q3-December-2019.-EBITDA-margin-improved-to-19.2%-in-Q4-March-2020-as-compared-to-18.8%-in-Q3-December-2019-and-19.2%-in-Q4-March-2019.

Global-Markets:

Most-shares-in-Europe-and-Asia-advanced.-China-held-its-benchmark-lending-rate-steady-on-Wednesday,-mirroring-the-central-bank's-decision-last-week-to-keep-borrowing-costs-on-medium-term-funding-for-financial-institutions-unchanged.-The-one-year-loan-prime-rate-(LPR)-remained-at-3.85%-from-last-month's-fixing,-while-the-five-year-LPR-was-also-steady-at-4.65%-from-previously.

Investors-also-watched-for-market-reaction-to-a-media-report-released-overnight-that-raised-concerns-about-the-trial-results-for-a-potential-coronavirus-vaccine-from-Moderna.-That-initial-positive-development-had-sent-global-markets-rallying-earlier-in-the-week.

The-US-equity-market-finished-volatile-session-lower-for-the-first-time-in-four-sessions-on-Tuesday,-19-May-2020,-as-investors-elected-to-book-profit-after-a-strong-rally-in-the-prior-session,-due-to-mixed-batch-of-corporate-results-from-major-retailers-and-reports-that-Moderna-Inc.'s-coronavirus-vaccine-study-didn't-produce-enough-critical-data-to-assess-its-success.

However,-market-losses-were-capped-after-Federal-Reserve-Chairman-Jerome-Powell,-in-a-statement,-said-that-the-central-bank-is-ready-to-use-all-the-weapons-in-its-arsenal-to-help-the-U.S.-economy-endure-the-coronavirus-pandemic.

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Domestic-shares-rallied-on-Wednesday,-supported-by-firmness-in-banks-shares.-The-Nifty-Bank-index-snapped-its-four-day-losing-streak.-As-per-provisional-closing,-the-barometer-S&P-BSE-Sensex-jumped-622.44-points-or-2.06%-at-30,818.61.-The-Nifty-50-index-gained-206.25-points-or-2.32%-at-9,085.35.

The-Nifty-opened-higher-at-8,889.15.-The-index-pared-gains-and-hit-the-day's-low-of-8,875.35-in-mid-morning-trade.-The-index-trade-sideways-for-most-part-of-the-day.-Sudden-buying-support-in-mid-afternoon-trade-catapulted-the-index-to-the-day's-high-of-9,093.80.-

The-broader-market-traded-higher.-The-S&P-BSE-Mid-Cap-index-was-up-1.49%-while-the-S&P-BSE-Small-Cap-index-rose-1.13%.

The-market-breadth-was-positive.-On-the-BSE,-1290-shares-rose-and-1025-shares-fell.-A-total-of-171-shares-were-unchanged.

Sentiment-got-a-boost-after-the-country's-finance-minister-Nirmala-Sitharaman-reportedly-said-the-government-remains-open-to-more-economic-measures-as-and-when-needed.-

Sitharaman-on-Sunday-(17-May)-announced-the-fifth-and-final-tranche-of-economic-stimulus-package-to-deal-with-the-economic-fallout-of-the-COVID-19-pandemic.-The-booster-measures-announced-on-Sunday-related-to-MGNREGS,-healthcare-and-education,-businesses,-de-criminalisation-of-the-Companies-Act,-ease-of-doing-business,-public-sector-enterprises,-and-resources-related-to-state-governments.-The-government,-in-its-first-four-tranches-of-the-stimulus-package,-focussed-on-addressing-the-land,-labour,-liquidity,-and-laws.-

Stock-in-Spotlight:

Index-major-Reliance-Industries-(RIL)-rose-1.96%-to-₹-1435.30-as-the-company's-rights-issue-opened-today,-20-May-2020.-The-rights-issue-valued-at-₹-53,125-crore,-will-be-open-for-subscription-today-and-it-will-close-on-3-June.-All-eligible-shareholders-as-per-record-date-of-14-May-are-entitled-to-subscribe-to-the-fresh-issue.-RIL-will-issue-42,26,26,894-equity-shares-as-part-of-the-rights-issue.-The-company-will-offer-existing-shareholders-one-new-share-for-15-held-at-a-discounted-price-of-₹-1,257.

Buzzing-Index:

The-Nifty-Bank-index-was-up-1.8%-to-17,801.85.-The-index-rebounded-after-falling-as-much-as-0.45%-at-the-day's-low-of-17,407.70.-The-index-slumped-11%-in-the-past-four-trading-session.

HDFC-Bank-(up-2.94%),-Kotak-Mahindra-Bank-(up-2.23%),-Federal-Bank-(up-2.09%),-Axis-Bank-(up-2.06%),-RBL-Bank-(up-1.78%),-ICICI-Bank-(up-1.57%),-Bandhan-Bank-(up-0.61%),-Bank-of-Baroda-(up-0.55%)-and-State-Bank-of-India-(up-0.49%)-were-top-gainers.

Q4-Results-Today:

Bajaj-Auto-(up-1.91%),-Jubilant-Foodworks-(up-0.36%),-Ajanta-Pharma-(up-2.3%),-GHCL-(up-1.18%),-JK-Lakshmi-Cement-(up-1.49%),-Kalpataru-Power-Transimission-(down-0.29%)-and-Strides-Pharma-Science-(up-3.18%)-are-some-of-the-companies-that-will-announce-their-quarterly-res-ult-today.

Earnings-Impact:

Dr-Reddy's-Laboratories-jumped-4.8%-after-consolidated-net-profit-jumped-76%-to-₹-764.20-crore-on-a-10%-rise-in-revenues-to-₹-4431.80-crore-in-Q4-March-2020-over-Q4-March-2019.-EBITDA-jumped-13.54%-to-₹-1,001.3-crore-in-Q4-FY20-from-₹-881.90-crore-in-Q4-FY19.-EBITDA-margins-stood-at-22.6%-in-Q4-March-2020-as-compared-to-22%-in-Q4-March-2019.-Profit-before-income-tax-stood-at-₹-714.2-crore-in-Q4-FY20,-up-by-22%-from-₹-585.1-crore-in-Q4-FY20.-Consolidated-net-profit-rose-4%-to-₹-1,949.80-crore-on-a-13%-rise-in-revenues-to-₹-17,460-crore-in-in-the-year-ended-March-2020-(FY20)-as-against-the-year-ended-March-2020-(FY19).-Profit-before-income-tax-stood-at-₹-1,803.20-crore-in-FY20,-down-by-20%-from-₹-2,244.3-crore-reported-in-FY19.

Bajaj-Finance-gained-1.22%.-The-NBFC-major's-consolidated-net-profit-declined-19%-to-₹-948-crore-on-36%-increase-in-total-income-to-₹-7,231-crore-in-Q4-March-2020-over-Q4-March-2019.-On-a-consolidated-basis,-profit-before-tax-(PBT)-stood-at-₹-1,278-crore-in-Q4-FY20,-down-by-29%-from-₹-1,812-crore-reported-in-Q4-FY19.-Net-interest-income-jumped-38%-to-₹-4,684-crore-in-Q4-FY20-over-Q4-FY19.-New-loans-booked-during-Q4-FY20-increased-by-3%-to-6.03-million-from-5.83-million-in-Q4-FY19.

Loan-losses-and-provisions-for-Q4-FY20-was-₹-1,954-crore-as-against-₹-409-crore-in-Q4-FY19.-During-the-quarter,-the-company-has-taken-an-accelerated-charge-of-₹-390-crore-for-two-identified-large-accounts,-an-additional-provision-of-₹-129-crore-on-account-of-recalibration-of-its-ECL-model-and-a-contingency-provision-of-₹-900-crore-for-COVID-19.-Adjusted-for-these-additional-provisions-of-₹-1,419-crore,-loan-losses-and-provisions-for-Q4-FY20-was-₹-535-crore.

Ujjivan-Small-Finance-Bank-surged-3.95%-after-net-profit-rose-14.7%-to-₹-73.15-crore-on-34.4%-rise-in-total-income-to-₹-809.65-crore-in-Q4-March-2020-over-Q4-March-2019.-Net-interest-income-(NII)-jumped-46%-to-₹-466-crore-in-Q4-FY20-over-Q4-FY19.-Net-interest-margin-(NIM)-stood-at-11.2%-in-Q4-March-2020-as-compared-to-10.8%-in-Q4-March-2019.-The-bank's-gross-non-performing-assets-(NPAs)-stood-at-₹-137.14-crore-as-on-31-March-2020-as-against-₹-129.45-crore-as-on-31-December-2019-and-₹-97.85-crore-as-on-31-March-2019.-The-ratio-of-gross-NPAs-to-gross-advances-stood-at-0.97%-as-on-31-March-2020-as-against-0.95%-as-on-31-December-2019-and-0.92%-as-on-31-March-2019.-The-bank's-provisions-and-contingencies-stood-at-₹-96.88-crore-in-Q4-March-2020,-almost-seven-times-compared-to-₹-12.37-crore-in-Q4-March-2019.-The-bank-has-made-total-provision-of-₹-70-crore-for-COVID-19-as-on-31-March-2020,-out-of-which-₹-48.97-crore-is-in-respect-of-accounts-in-default-but-standard-against-the-potential-impact-of-COVID-19.-The-bank-clarified-that-provisions-held-are-in-excess-of-the-RBI-prescribed-norms.

Larsen-&-Toubro-Infotech-rallied-6.94%-after-consolidated-net-profit-jumped-13.49%-to-₹-427.50-crore-on-a-7.14%-increase-in-net-sales-to-₹-3,011.90-crore-in-Q4-March-2020-over-Q3-December-2019.-Consolidated-profit-before-tax-rose-10.32%-to-₹-551.40-crore-in-Q4-March-2020-as-against-₹-499.80-crore-in-Q3-December-2019.-EBITDA-margin-improved-to-19.2%-in-Q4-March-2020-as-compared-to-18.8%-in-Q3-December-2019-and-19.2%-in-Q4-March-2019.

Global-Markets:

Most-shares-in-Europe-and-Asia-advanced.-China-held-its-benchmark-lending-rate-steady-on-Wednesday,-mirroring-the-central-bank's-decision-last-week-to-keep-borrowing-costs-on-medium-term-funding-for-financial-institutions-unchanged.-The-one-year-loan-prime-rate-(LPR)-remained-at-3.85%-from-last-month's-fixing,-while-the-five-year-LPR-was-also-steady-at-4.65%-from-previously.

Investors-also-watched-for-market-reaction-to-a-media-report-released-overnight-that-raised-concerns-about-the-trial-results-for-a-potential-coronavirus-vaccine-from-Moderna.-That-initial-positive-development-had-sent-global-markets-rallying-earlier-in-the-week.

The-US-equity-market-finished-volatile-session-lower-for-the-first-time-in-four-sessions-on-Tuesday,-19-May-2020,-as-investors-elected-to-book-profit-after-a-strong-rally-in-the-prior-session,-due-to-mixed-batch-of-corporate-results-from-major-retailers-and-reports-that-Moderna-Inc.'s-coronavirus-vaccine-study-didn't-produce-enough-critical-data-to-assess-its-success.

However,-market-losses-were-capped-after-Federal-Reserve-Chairman-Jerome-Powell,-in-a-statement,-said-that-the-central-bank-is-ready-to-use-all-the-weapons-in-its-arsenal-to-help-the-U.S.-economy-endure-the-coronavirus-pandemic.

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