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Market slumps as stimulus package disappoints
(15:32, 18 May 2020)

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The-market-slumped-on-Monday-amid-broad-based-selling-pressure-with-banks,-financials-and-auto-stocks-losing-the-most.-Unimpressive-economic-stimulus,-rising-cases-of-Covid-19-in-India-and-extension-of-nationwide-lockdown-dented-investors-sentiment.

As-per-provisional-closing,-the-barometer-S&P-BSE-Sensex-tumbled-1068.75-points-or-3.44%-at-30,028.98.-The-Nifty-50-index-lost-307.7-points-or-3.37%-at-8,829.15.

The-Nifty-opened-higher-at-9,158.30,-but-quickly-reversed--trend-amid-steep-selling-pressure.-The-Nifty-broke-the-decisive-9000-mark-in-morning-trade.-A-minor-recovery-was-seen-in-early-afternoon-trade-as-Nifty-momentarily-arrested-the-fall-and-traded-sideways.-Fresh-wave-of-selling-in-last-half-hour-of-trade-dragged-the-Nifty-to-its-day's-low-of-8806.75.-

In-the-broader-market,-the-S&P-BSE-Mid-Cap-index-declined-3.81%-while-the-S&P-BSE-Small-Cap-index-fell-2.93%.

The-market-breadth-was-weak.-On-the-BSE,-577-shares-rose-and-1773-shares-fell.-A-total-of-166-shares-were-unchanged.-In-Nifty-50-index,-6-stocks-advanced-while-44-stocks-declined.

COVID-19-Update:

Total-COVID-19-confirmed-cases-worldwide-stood-at-47,13,769-far-with-3,15,187-deaths.-India-reported-56,316-active-cases-of-COVID-19-infection-and-3,029-deaths,-according-to-the-data-from-the-Ministry-of-Health-and-Family-Welfare,-Government-of-India.

Meanwhile,-in-a-bid-to-contain-the-spread-of-the-novel-coronavirus-pandemic,-the-Centre-on-17-May-2020-extended-the-nationwide-lockdown-till-31-May-2020.-According-to-the-new-guidelines,-the-delineation-of-red,-orange-and-green-zones-will-be-decided-by-respective-states-and-Union-Territory-governments-after-taking-into-consideration-the-parameters-shared-by-the-Union-Ministry-of-Health-and-Family-Welfare.

Economy:

India's-merchandise-exports-dipped-60.3%-to-US$-10.36-billion-in-April-2020-over-a-year-ago.-Meanwhile,-merchandise-imports-also-declined-58.6%-to-US$-17.12-billion.-The-trade-deficit-fell-55.9%-to-US$-6.76-billion-in-April-2020-from-$15.33-billion-in-April-2019.

Merchandise-exports-in-rupees-plunged-56.4%-to-₹-78951-crore,-while-imports-declined-54.6%-to-₹-130525-crore-in-April-2020-over-April-2019.-The-trade-deficit-eased-to-₹-51574-crore-in-April-2020-compared-with-₹-106412-crore-in-April-2019.

As-per-the-data-released-by-the-Reserve-Bank-of-India,-India's-services-exports-increased-1.2%-to-US$-18.16-billion-in-March-2020-over-March-2019.-Meanwhile,-India's-services-imports-declined-2.2%-to-$11.11-billion-in-March-2020.

Buzzing-Index:

The-Nifty-Bank-index-slumped-6.35%-to-17,637.35-after-the-Government-on-Sunday-said-insolvency-proceedings-against-fresh-defaulters-would-remain-suspended-for-up-to-one-year-and-Covid-19-related-debt-would-be-excluded-from-the-definition-of-default.

The-index-extended-its-losing-run-to-third-consecutive-trading-session.-The-index-has-slumped-10.17%-in-three-trading-days-from-its-previous-closing-high-of-19,634.95-on-13-May-2020.

Among-the-public-sector-banks,-Canara-Bank-(down-7.68%),-Bank-of-Baroda-(down-6.62%),-Punjab-National-Bank-(down-6.24%),-State-Bank-of-India-(down-5.86%),-Union-Bank-of-India-(down-5.47%),-Central-Bank-of-India-(down-5.37%),-Indian-Bank-(down-5.17%),-Bank-of-India-(down-4.48%),-IDBI-Bank-(down-3.95%),-Bank-of-Maharashtra-(down-3.59%),-UCO-Bank-(down-3.59%),-Punjab-&-Sind-Bank-(down-2.25%)-and-Andhra-Bank-(down-1.42%)-declined.

Among-the-private-sector-banks,-IndusInd-Bank-(down-9.3%),-Federal-Bank-(down-9%),-RBL-Bank-(down-8.77%),-City-Union-Bank-(down-8.25%),-Axis-Bank-(down-7.22%),-ICICI-Bank-(down-7%),-HDFC-Bank-(down-5.53%),-Kotak-Mahindra-Bank-(down-5%),-Bandhan-Bank-(down-4.5%)-and-Yes-Bank-(down-3.31%)-tumbled.

Finance-Minister-Nirmala-Sitharaman-on-Sunday-(17-May)-further-said-that-the-central-government-will-be-empowered-to-exclude-Covid-19-related-debt-from-the-definition-of-'default'-under-the-code.-FM-added-that-minimum-threshold-to-initiate-insolvency-proceedings-is-raised-to-₹-1-crore-from-₹-1-lakh-earlier.-Banks-and-NBFCs-could-face-a-tough-time-ahead-as-they-will-be-deprived-of-a-credible-mode-of-bad-debt-resolution.

Q4-Results-Today:

Bharti-Airtel-(down-2.1%),-Glaxosmithkline-Pharmaceuticals-(down-2%),-Torrent-Power-(down-1.79%),-Astrazeneca-Pharma-India-(up-1.15%),-Delta-Corp-(down-4.69%)-and-Maharashtra-Scooters-(down-6.33%)-are-some-of-the-companies-that-will-announce-their-quarterly-results-today.

Earnings-Impact:

Cipla-gained-4.77%.-On-a-consolidated-basis,-Cipla's-net-profit-declined-33%-to-₹-245.95-crore-on-a-0.7%-rise-in-net-sales-to-₹-4301.60-crore-in-Q4-March-2020-over-Q4-March-2019.-The-company-said-its-India-Rx-business-grew-by-12%-on-a-year-on-year-basis-recording-a-third-consecutive-quarter-of-market-beating-growth.-South-Africa-business-continued-the-strong-growth-momentum-to-deliver-growth-of-10%-on-a-year-on-year-basis-in-local-currency.-Cipla-reported-its-Research-&-Development-investment-stood-at-₹-311-crore-in-Q4-March-2020,-which-is-7.1%-of-sales.-Consolidated-EBITDA-declined-33%-to-₹-652-crore-in-Q4-March-2020-from-₹-972-crore-posted-in-Q4-March-2019.-EBITDA-margin-declined-to-15%-in-Q4-March-2020-from-22%-reported-in-Q4-March-2019.

Tata-Chemicals-fell-5.7%-after-consolidated-net-profit-slumped-48.47%-to-₹-197.56-crore-on-7.16%-decline-in-revenue-from-operations-to-₹-2,378.09-crore-in-Q4-March-2020-over-Q4-March-2019.-Consolidated-profit-before-tax-(PBT)-dropped-45.28%-to-₹-216.88-crore-in-Q4-March-2020-as-against-₹-396.38-crore-in-Q4-March-2019.-Total-tax-expenses-jumped-49.07%-to-₹-19.32-crore-in-Q4-March-2020-as-against-₹-12.96-paid-in-Q4-March-2019.-EBITDA-dropped-11%-to-₹-400-crore-in-Q4-March-2020-from-₹-447-crore-in-Q4-March-2019.-EBITDA-margin-stood-unchanged-at-17%-in-Q4-March-2020-compared-with-the-same-period-last-year.

Mahindra-&-Mahindra-Finance-tumbled-18%-after-consolidated-net-profit-dropped-65.8%-to-₹-234.82-crore-on-8.05%-rise-in-total-income-to-₹-3,148.47-crore-in-Q4-March-2020-over-Q4-March-2019.-The-company-said-in-order-to-cover-the-contingencies-that-may-arise-due-to-COVID-19-Pandemic,-it-has-incorporated-the-management-overlays-in-the-impairment-loss-allowance-and-the-total-provision-recognized-in-the-statement-of-Profit-and-Loss-during-the-quarter-stood-at-₹-681.16-crore.

L&T-Technology-Services-(LTTS)-jumped-3%-after-consolidated-net-profit-gained-0.34%-to-₹-204.80-crore-on-1.66%-increase-in-net-sales-to-₹-1,446.60-crore-in-Q4-March-2020-over-Q3-December-2019.-Consolidated-profit-before-tax-fell-0.98%-to-₹-271.80-crore-in-Q4-March-2020-as-against-₹-274.50-crore-in-Q3-December-2019.-Tax-expenses-slipped-4.65%-at-₹-65.50-crore-in-Q4-March-2020-as-compared-to-₹-68.70-crore-paid-in-Q3-December-2019.

Stocks-in-Spotlight:

Reliance-Industries-(RIL)-was-down-1.3%.-RIL-and-Jio-Platforms-on-17-May-2020-announced-an-investment-of-₹-6,598.38-crore-by-General-Atlantic,-a-leading-global-growth-equity-firm.-This-investment-values-Jio-Platforms-at-an-equity-value-of-₹-4.91-lakh-crore-and-an-enterprise-value-of-₹-5.16-lakh-crore.-General-Atlantic's-investment-will-translate-into-a-1.34%-equity-stake-in-Jio-Platforms-on-a-fully-diluted-basis.-The-transaction-is-subject-to-regulatory-and-other-customary-approvals.

With-this-investment,-Jio-Platforms-has-raised-₹-67,194.75-crore-from-leading-technology-investors-including-Facebook,-Silver-Lake,-Vista-Equity-Partners-and-General-Atlantic-in-less-than-four-weeks.

Coal-India-(CIL)-slumped-5.79%-after-Finance-Minister-Nirmala-Sitharaman-on-Saturday-(16-May)-allowed-commercial-mining-of-coal-by-the-private-sector,-ending-government-monopoly-on-the-sector.-FM-said-introduction-of-private-players-in-commercial-mining-will-be-done-on-revenue-sharing-mechanism-instead-of-the-regime-of-fixed-rupee/tonne.-She-further-said-that-nearly-50-blocks-will-be-offered-for-bidding.

Global-Markets:

European-markets-were-trading-with-massive-gains-on-Monday-as-investors-eyed-a-gradual-economic-recovery-with-many-countries-easing-lockdown.-Asian-markets-closed-higher-despite-U.S.-Federal-Reserve-Chairman-Jerome-Powell-saying-that-the-economy-stateside-may-need-a-coronavirus-vaccine-to-fully-recover.

On-the-economic-data-front,-Japan's-economy-shrank-at-an-annualized-rate-of-3.4%-in-January-March,-government-data-showed.-That-marked-the-country's-second-straight-quarter-of-contraction,-meeting-the-technical-definition-of-a-recession.

In-US,-stocks-recovered-from-steep-losses-early-Friday-to-close-higher,-despite-data-showing-U.S.-April-retail-sales-plunged-more-than-forecasts-and-news-the-Trump-administration-will-block-shipments-of-semiconductors-to-China's-Huawei-Technologies,-stoking-fears-of-renewed-trade-tensions.

However,-sentiment-was-improved-by-news-the-House-of-Representatives-was-set-to-vote-on-another-$3-trillion-coronavirus-package-that-could-be-the-opening-bid-in-another-round-of-fiscal-stimulus.

In-economic-data,-U.S.-retail-sales-fell-16.4%-in-April,-the-Commerce-Department-reported,-as-businesses-remained-all-but-shut-down.-Excluding-autos,-sales-still-dropped-16.2%.

Industrial-production-collapsed-in-April,-the-Federal-Reserve-said-Friday.-Industrial-output-fell-a-record-11.2%,-pulled-down-by-a-record-drop-in-manufacturing.-Capacity-utilization-slumped-to-a-record-low-64.9%-from-72.7%-in-March.

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The-market-slumped-on-Monday-amid-broad-based-selling-pressure-with-banks,-financials-and-auto-stocks-losing-the-most.-Unimpressive-economic-stimulus,-rising-cases-of-Covid-19-in-India-and-extension-of-nationwide-lockdown-dented-investors-sentiment.

As-per-provisional-closing,-the-barometer-S&P-BSE-Sensex-tumbled-1068.75-points-or-3.44%-at-30,028.98.-The-Nifty-50-index-lost-307.7-points-or-3.37%-at-8,829.15.

The-Nifty-opened-higher-at-9,158.30,-but-quickly-reversed--trend-amid-steep-selling-pressure.-The-Nifty-broke-the-decisive-9000-mark-in-morning-trade.-A-minor-recovery-was-seen-in-early-afternoon-trade-as-Nifty-momentarily-arrested-the-fall-and-traded-sideways.-Fresh-wave-of-selling-in-last-half-hour-of-trade-dragged-the-Nifty-to-its-day's-low-of-8806.75.-

In-the-broader-market,-the-S&P-BSE-Mid-Cap-index-declined-3.81%-while-the-S&P-BSE-Small-Cap-index-fell-2.93%.

The-market-breadth-was-weak.-On-the-BSE,-577-shares-rose-and-1773-shares-fell.-A-total-of-166-shares-were-unchanged.-In-Nifty-50-index,-6-stocks-advanced-while-44-stocks-declined.

COVID-19-Update:

Total-COVID-19-confirmed-cases-worldwide-stood-at-47,13,769-far-with-3,15,187-deaths.-India-reported-56,316-active-cases-of-COVID-19-infection-and-3,029-deaths,-according-to-the-data-from-the-Ministry-of-Health-and-Family-Welfare,-Government-of-India.

Meanwhile,-in-a-bid-to-contain-the-spread-of-the-novel-coronavirus-pandemic,-the-Centre-on-17-May-2020-extended-the-nationwide-lockdown-till-31-May-2020.-According-to-the-new-guidelines,-the-delineation-of-red,-orange-and-green-zones-will-be-decided-by-respective-states-and-Union-Territory-governments-after-taking-into-consideration-the-parameters-shared-by-the-Union-Ministry-of-Health-and-Family-Welfare.

Economy:

India's-merchandise-exports-dipped-60.3%-to-US$-10.36-billion-in-April-2020-over-a-year-ago.-Meanwhile,-merchandise-imports-also-declined-58.6%-to-US$-17.12-billion.-The-trade-deficit-fell-55.9%-to-US$-6.76-billion-in-April-2020-from-$15.33-billion-in-April-2019.

Merchandise-exports-in-rupees-plunged-56.4%-to-₹-78951-crore,-while-imports-declined-54.6%-to-₹-130525-crore-in-April-2020-over-April-2019.-The-trade-deficit-eased-to-₹-51574-crore-in-April-2020-compared-with-₹-106412-crore-in-April-2019.

As-per-the-data-released-by-the-Reserve-Bank-of-India,-India's-services-exports-increased-1.2%-to-US$-18.16-billion-in-March-2020-over-March-2019.-Meanwhile,-India's-services-imports-declined-2.2%-to-$11.11-billion-in-March-2020.

Buzzing-Index:

The-Nifty-Bank-index-slumped-6.35%-to-17,637.35-after-the-Government-on-Sunday-said-insolvency-proceedings-against-fresh-defaulters-would-remain-suspended-for-up-to-one-year-and-Covid-19-related-debt-would-be-excluded-from-the-definition-of-default.

The-index-extended-its-losing-run-to-third-consecutive-trading-session.-The-index-has-slumped-10.17%-in-three-trading-days-from-its-previous-closing-high-of-19,634.95-on-13-May-2020.

Among-the-public-sector-banks,-Canara-Bank-(down-7.68%),-Bank-of-Baroda-(down-6.62%),-Punjab-National-Bank-(down-6.24%),-State-Bank-of-India-(down-5.86%),-Union-Bank-of-India-(down-5.47%),-Central-Bank-of-India-(down-5.37%),-Indian-Bank-(down-5.17%),-Bank-of-India-(down-4.48%),-IDBI-Bank-(down-3.95%),-Bank-of-Maharashtra-(down-3.59%),-UCO-Bank-(down-3.59%),-Punjab-&-Sind-Bank-(down-2.25%)-and-Andhra-Bank-(down-1.42%)-declined.

Among-the-private-sector-banks,-IndusInd-Bank-(down-9.3%),-Federal-Bank-(down-9%),-RBL-Bank-(down-8.77%),-City-Union-Bank-(down-8.25%),-Axis-Bank-(down-7.22%),-ICICI-Bank-(down-7%),-HDFC-Bank-(down-5.53%),-Kotak-Mahindra-Bank-(down-5%),-Bandhan-Bank-(down-4.5%)-and-Yes-Bank-(down-3.31%)-tumbled.

Finance-Minister-Nirmala-Sitharaman-on-Sunday-(17-May)-further-said-that-the-central-government-will-be-empowered-to-exclude-Covid-19-related-debt-from-the-definition-of-'default'-under-the-code.-FM-added-that-minimum-threshold-to-initiate-insolvency-proceedings-is-raised-to-₹-1-crore-from-₹-1-lakh-earlier.-Banks-and-NBFCs-could-face-a-tough-time-ahead-as-they-will-be-deprived-of-a-credible-mode-of-bad-debt-resolution.

Q4-Results-Today:

Bharti-Airtel-(down-2.1%),-Glaxosmithkline-Pharmaceuticals-(down-2%),-Torrent-Power-(down-1.79%),-Astrazeneca-Pharma-India-(up-1.15%),-Delta-Corp-(down-4.69%)-and-Maharashtra-Scooters-(down-6.33%)-are-some-of-the-companies-that-will-announce-their-quarterly-results-today.

Earnings-Impact:

Cipla-gained-4.77%.-On-a-consolidated-basis,-Cipla's-net-profit-declined-33%-to-₹-245.95-crore-on-a-0.7%-rise-in-net-sales-to-₹-4301.60-crore-in-Q4-March-2020-over-Q4-March-2019.-The-company-said-its-India-Rx-business-grew-by-12%-on-a-year-on-year-basis-recording-a-third-consecutive-quarter-of-market-beating-growth.-South-Africa-business-continued-the-strong-growth-momentum-to-deliver-growth-of-10%-on-a-year-on-year-basis-in-local-currency.-Cipla-reported-its-Research-&-Development-investment-stood-at-₹-311-crore-in-Q4-March-2020,-which-is-7.1%-of-sales.-Consolidated-EBITDA-declined-33%-to-₹-652-crore-in-Q4-March-2020-from-₹-972-crore-posted-in-Q4-March-2019.-EBITDA-margin-declined-to-15%-in-Q4-March-2020-from-22%-reported-in-Q4-March-2019.

Tata-Chemicals-fell-5.7%-after-consolidated-net-profit-slumped-48.47%-to-₹-197.56-crore-on-7.16%-decline-in-revenue-from-operations-to-₹-2,378.09-crore-in-Q4-March-2020-over-Q4-March-2019.-Consolidated-profit-before-tax-(PBT)-dropped-45.28%-to-₹-216.88-crore-in-Q4-March-2020-as-against-₹-396.38-crore-in-Q4-March-2019.-Total-tax-expenses-jumped-49.07%-to-₹-19.32-crore-in-Q4-March-2020-as-against-₹-12.96-paid-in-Q4-March-2019.-EBITDA-dropped-11%-to-₹-400-crore-in-Q4-March-2020-from-₹-447-crore-in-Q4-March-2019.-EBITDA-margin-stood-unchanged-at-17%-in-Q4-March-2020-compared-with-the-same-period-last-year.

Mahindra-&-Mahindra-Finance-tumbled-18%-after-consolidated-net-profit-dropped-65.8%-to-₹-234.82-crore-on-8.05%-rise-in-total-income-to-₹-3,148.47-crore-in-Q4-March-2020-over-Q4-March-2019.-The-company-said-in-order-to-cover-the-contingencies-that-may-arise-due-to-COVID-19-Pandemic,-it-has-incorporated-the-management-overlays-in-the-impairment-loss-allowance-and-the-total-provision-recognized-in-the-statement-of-Profit-and-Loss-during-the-quarter-stood-at-₹-681.16-crore.

L&T-Technology-Services-(LTTS)-jumped-3%-after-consolidated-net-profit-gained-0.34%-to-₹-204.80-crore-on-1.66%-increase-in-net-sales-to-₹-1,446.60-crore-in-Q4-March-2020-over-Q3-December-2019.-Consolidated-profit-before-tax-fell-0.98%-to-₹-271.80-crore-in-Q4-March-2020-as-against-₹-274.50-crore-in-Q3-December-2019.-Tax-expenses-slipped-4.65%-at-₹-65.50-crore-in-Q4-March-2020-as-compared-to-₹-68.70-crore-paid-in-Q3-December-2019.

Stocks-in-Spotlight:

Reliance-Industries-(RIL)-was-down-1.3%.-RIL-and-Jio-Platforms-on-17-May-2020-announced-an-investment-of-₹-6,598.38-crore-by-General-Atlantic,-a-leading-global-growth-equity-firm.-This-investment-values-Jio-Platforms-at-an-equity-value-of-₹-4.91-lakh-crore-and-an-enterprise-value-of-₹-5.16-lakh-crore.-General-Atlantic's-investment-will-translate-into-a-1.34%-equity-stake-in-Jio-Platforms-on-a-fully-diluted-basis.-The-transaction-is-subject-to-regulatory-and-other-customary-approvals.

With-this-investment,-Jio-Platforms-has-raised-₹-67,194.75-crore-from-leading-technology-investors-including-Facebook,-Silver-Lake,-Vista-Equity-Partners-and-General-Atlantic-in-less-than-four-weeks.

Coal-India-(CIL)-slumped-5.79%-after-Finance-Minister-Nirmala-Sitharaman-on-Saturday-(16-May)-allowed-commercial-mining-of-coal-by-the-private-sector,-ending-government-monopoly-on-the-sector.-FM-said-introduction-of-private-players-in-commercial-mining-will-be-done-on-revenue-sharing-mechanism-instead-of-the-regime-of-fixed-rupee/tonne.-She-further-said-that-nearly-50-blocks-will-be-offered-for-bidding.

Global-Markets:

European-markets-were-trading-with-massive-gains-on-Monday-as-investors-eyed-a-gradual-economic-recovery-with-many-countries-easing-lockdown.-Asian-markets-closed-higher-despite-U.S.-Federal-Reserve-Chairman-Jerome-Powell-saying-that-the-economy-stateside-may-need-a-coronavirus-vaccine-to-fully-recover.

On-the-economic-data-front,-Japan's-economy-shrank-at-an-annualized-rate-of-3.4%-in-January-March,-government-data-showed.-That-marked-the-country's-second-straight-quarter-of-contraction,-meeting-the-technical-definition-of-a-recession.

In-US,-stocks-recovered-from-steep-losses-early-Friday-to-close-higher,-despite-data-showing-U.S.-April-retail-sales-plunged-more-than-forecasts-and-news-the-Trump-administration-will-block-shipments-of-semiconductors-to-China's-Huawei-Technologies,-stoking-fears-of-renewed-trade-tensions.

However,-sentiment-was-improved-by-news-the-House-of-Representatives-was-set-to-vote-on-another-$3-trillion-coronavirus-package-that-could-be-the-opening-bid-in-another-round-of-fiscal-stimulus.

In-economic-data,-U.S.-retail-sales-fell-16.4%-in-April,-the-Commerce-Department-reported,-as-businesses-remained-all-but-shut-down.-Excluding-autos,-sales-still-dropped-16.2%.

Industrial-production-collapsed-in-April,-the-Federal-Reserve-said-Friday.-Industrial-output-fell-a-record-11.2%,-pulled-down-by-a-record-drop-in-manufacturing.-Capacity-utilization-slumped-to-a-record-low-64.9%-from-72.7%-in-March.

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