Live: Sensex, Nifty Decline; Rupee Opens With Gains
Money Market Update
The currency has opened higher for the fourth straight day today, matching its longest winning streak in a month.
The rupee opened at 74.57 against the U.S. Dollar as compared to Tuesday's close of 74.74.
CR Forex Advisors believes that there could be further sharp downward movement in the currency if it breaks past the 74.5 mark.
Yield on the 10-year government bond opened at 5.828% as compared to Tuesday's close of 5.833%.
Within the bond markets today, focus will be on treasury bill auctions.
The government plans to sell 91-day, 182-day and 364-day treasury bills today, aggregating to Rs 35,000 crore.
Buzzing Stock: Aurobindo Pharma
- Top performer on the Nifty Pharma index
- Gains as much as 4.9% to Rs 839.3
- Biggest single-day gain in two months
- Snaps four-day losing streak
- Today's volumes are nearly triple its 20-day average
- Trading at 15.2 times estimated forward earnings per share as compared to two-year historical average of 12.4 times
- The stock has nearly tripled from its 52-week low of Rs 288.8 on March 23, 2020
- 29 out of the 34 analysts tracking the stock have a buy recommendation; 1 sell call
- Return potential of the stock as per Bloomberg data is 2.2%
Coronavirus India Updates
- India reports 37,724 new cases in the last 24 hours
- Total confirmed cases now at 11,92,915
- Active cases now at 4,11,133
- Number of patients cured / discharged / migrated at 7,53,050
- Death toll rises to 28,732
- 648 deaths reported in the last 24 hours
- 28,472 patients recovered in the last 24 hours
Earnings Reaction: Hindustan Unilever
The FMCG major reported a 4.4% growth in its net sales, mainly aided by the nutrition business post the acquisition of GSK Consumer.
Operational performance was flat while net profit rose 7.2% as compared to the same quarter last year.
The company's home care and personal care business saw declines in revenue as well as margins during the quarter.
Foods and Refreshments business saw revenue rising 51.7% while margins expanded to 19.7% from 19.4%.
-8% is underlying volume growth which excludes the impact of nutrition business (GSK acquisition)HUL’s Response To BloombergQuint’s Query On Volumes
CLSA has downgraded the stock to outperform from buy citing its recent run-up, adding that business recovery in the coming quarters is critical for valuations to sustain.
Shares fell as much as 2.8% to Rs 2,253 and are down for the third straight day. The stock is also the top laggard on the Nifty 50 index.
Earnings Reaction: Axis Bank
The Mumbai-based private lender reported a 20% rise in its Net Interest Income as compared to the same period last year.
Net profit for the bank declined 19% owing to higher provisions, which stood at Rs 4,416 crore as compared to Rs 3,815 crore in the previous quarter.
Asset quality saw a marginal improvement with Gross NPAs at 4.72% from 4.86% while Net NPAs fell to 1.23% from 1.56%.
The bank has made additional provisions worth Rs 733 crore in the current quarter to combat the effects of Covid-19.
In its earnings call, the lender stated that 9% of the total book is under moratorium.
Brokerage firms CLSA and Macquarie have maintained their buy and outperform rating on the stock respectively. CLSA has raised its price target to Rs 600 from the earlier Rs 580, citing undemanding valuations.
Shares of the bank gained as much as 8.43% - the biggest single-day gain in two months to Rs 483.8. The stock now trades at the highest level in three months.