Manav Chopra, CMT, Head Research - Equity, Indiabulls Securities:
We have continued to remain a Contrarian bull which has worked very well. We have been guiding for 9,300-9,500 zone which has been achieved. As the index approaches towards 9,500 one should be on a cautious side as the entire rally can fade out near the mentioned levels. We had been contrarian bull and as we approach towards 9,500 we advise caution.
Vinod Nair, Head of Research at Geojit Financial Services:
Markets were buoyant following RBI measures to boost liquidity and reclassify NPA norms for commercial banks. The positive global markets also added to the buoyancy. Rate sensitive stocks managed to outperform. Focus will continue to be on how far these measures will help in containing the economic fallout of the virus and also on the earnings guidance of companies.
Raghvendra Nath, MD, Ladderup Wealth Management:
The Economic distress because of the pandemic is beyond doubt. And it is commendable that RBI is addressing the issue head-on and continually telling that they will keep looking at the data and take action proactively to reduce the stress in the Economy as the situation develops in the next few months.
It was heartening to see that RBI is taking a lot of concrete actions to ensure that the liquidity in the banking system is utilized for the purpose of lending to the corporate sector. RBI has also been addressing the concerns of the NBFC sector. The allocation of Rs 50,000 crore dedicated towards TLTRO of NBFC’s should also boost investor sentiments. This amount has to invested in Bonds, CP, NCD of NBFCs, with about 50% earmarked for the small and mid-sized NBFCs. This should ease the liquidity requirement of the smaller NBFC houses. Given the state of affairs of the economy they were the once having funding issues and the current corpus should make liquidity easily available for them.
S Ranganathan, Head of Research at LKP Securities:
The Liquidity boosting measures announced by the RBI on the back of positive global cues boosted the markets today despite profit booking seen in afternoon trade. Financials led the charge today and several heavy weights joined the party as the day progressed in anticipation of a Stimulus Package.
Market Close
: Benchmark indices ended higher for the second consecutive day after RBI announced some key measures to inject the much needed liquidity in the system.
At close, the Sensex was up 986.11 points or 3.22% at 31588.72, while Nifty rose 273.95 points or 3.05% at 9266.75. About 1685 shares have advanced, 696 shares declined, and 177 shares are unchanged.
Axis Bank, Eicher Motors, ICICI Bank, Maruti Suzuki and IndusInd Bank were among major gainers on the Nifty, while losers were Nestle, HUL, Bharti Infratel, Sun Pharma and Tech Mahindra.
Among sectors, except pharma and FMCG other indices ended in the green. BSE Midcap and Smallcap indices rose 2 percent each.
Gurpreet Sidana, Chief Operating Officer, Religare Broking:
The RBI announced a host of additional fiscal and regulatory measures to help the financial system and facilitate liquidity as well as credit flows. We feel recalibration of NPA norms, liquidity measures for NBFCs and special refinancing facility to institutions like NABARD, SIDBI and NHB would play a crucial role in handling the credit flow issues to agri., rural, small industries, HFCs and MFIs. Besides, further reduction in the reverse repo and cut in liquidity coverage ratio(LCR) will incentivise banks to lend more.
We believe these measures are positive for financial institutions and also for the borrowers amid this COVID 19 crisis as it not only addresses liquidity needs but also ensures their financial stability.
Sanjeev Zarbade, VP PCG Research, Kotak Securities:
For the current week, the BSE-30 Index is seen closing in the positive zone on the back of positive global cues and announcement of stimulus package by the RBI. Reports from the US that a drug from Gilead is showing great results in treating covid-19 cases also led to positive sentiments.
In India, expectations of fresh set of fiscal stimulus package, which would be bigger than the earlier one, also lifted sentiments.
Zota Healthcare resumes operations
: As per the directives received from the regulatory authorities, the company resumed its operations at manufacturing facility located at Sachin Special Economic Zone (SEZ).
Nifty Auto Index up 4.3 percent led by Bharat Forge, Eicher Motors, TVS Motor:
Naveen Kulkarni, Chief Investment Officer, Axis securities:
RBI continues to be very proactive to ensure financial stability on the system. The continued measures to boost system liquidity and help manage system stress are positive. Some of the liquidity and asset classification measures should help the large housing finance companies, as they have large diversified books. However, the systemic challenges continue to be quite significant as there is both demand and supply destruction in the economy which have significant balance sheet impact on the BFSI firms. So, with time, more reforms, guidelines and measures can be expected from RBI as the extent of systemic challenges become more visible.
Buzzing
: JK Lakshmi Cement share price jumped 11 percent on April 17 after its grinding units in Gujarat resumed some operations.
Rupee ends higher
Indian rupeeended 46 paisehigher by at 76.51 per dollar, aftersome key measures announced by RBItoinject the much needed liquidity in the system.
Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services:
The COVID-19 will continue to be the focus of the market. The worries over the scale of economic fallout due to coronavirus pandemic led rupee breach fresh record low of 76.87. However, the remedial coronavirus drug Remdesivir gave some respite to the plunge in rupee.
Locally, RBI announced a slew of measures to prod banks to lend more, especially to small and mid-sized, NBFC. Also, there is a clamour for fiscal support via another round of a stimulus package. This could provide some cushion to depreciating rupee, although, until the lockdown is lifted and there is a pickup in earnings growth of companies, the outlook for rupee will remain wobbly.
We expect trade within 75.75-77.30 coming days. The 77 will act as a crucial resistance in spot and can open door for 77.30 and 77.50.
Buzzing
Shares of Orient Paper & Industries rallied 5 percent on April 17 after the resumption of normal operation in company's paper plant at Amlai.
Motilal Oswal, MD and CEO of Motilal Oswal Financial Services:
Given the unprecedented times we are in, it is heartening that RBI is addressing all these challenges at a war footing. We believe, the key measures announced by RBI will help inject the much needed liquidity in the system, facilitate and incentivise credit flow and provide flexibility on regulatory forbearance. Markets are in buying zone. Keep accumulating and increasing equity allocations gradually.
S&P cuts India FY21 GDP growth forecast to 1.8% from 3.5%. India slowdown is cyclical, while the structural growth story is still intact. India's growth should return to 7% levels in the medium-term. It see India FY22 GDP growth at 7.5%, reported CNBC-TV18.
European markets open on a strong note with FTSE up 2%
Most active stocks on NSE in terms of volumes
Buzzing Stock:
Graphite India share price was locked in 5 percent upper circuit after the company announced resuming partial operations at Satpur plant. The company on April 16 told the BSE that it had started partial manufacturing operations at its graphite electrode plant in Satpur, Nashik, Maharashtra, engaging minimum labour.
Dhiraj Relli, MD & CEO, HDFC Securities:
The RBI Governor unveiled measures to ease liquidity and bank credit, to support the economy and enable normal functioning of markets, as part of the economic relief to offset the fallout of coronavirus lockdown.
Buzzing
: Oberoi Realty share price rallied more than 14 percent on April 17 after the company repaid NCDs ahead of schedule.
Rupee Update
Indian rupeeerases some gains but trading higher at 76.51 per dollar, after RBI governor announced measures to ensure adequate liquidity in the system to ease the financial stress caused by the Covid-19 pandemic.
Market is trading off day's high with the FMCG index down a percent dragged by United Spirits, HUL and Marico.
Buzzing
: Oberoi Realty share price rallied more than 14 percent on April 17 after the company repaid NCDs ahead of schedule.
Market Update
Benchmark indices erased some of its early gains with Nifty below 9150 level.
The Sensex is up 539.42 points or 1.76% at 31142.03, and the Nifty up 151.50 points or 1.68% at 9144.30. About 1446 shares have advanced, 633 shares declined, and 109 shares are unchanged.
Buzzing
: The share price of Sudarshan Chemical rose more than 3 percent on April 17 after the company restarted its facility at Roha in Maharashtra.
Abhishek Goenka, Founder & CEO, IFA Global:
Another cut in reverse repo is intended to disincentivize banks from parking funds with the RBI and to incentivize them to lend to the real economy instead. Combination of measures to boost liquidity, improve monetary transmission and relax repayment schedules is the need of the hour in which RBI has been proactive and repeatedly insisting that they would do whatever it takes. Ofcourse this provides much needed liquidity and positive message for NBFC especially and a much eleaborated stimulus package is awaited."
Cadila gets final approval
Zydus Cadila has received final approval from the USFDA to market Erlotinib Tablets in the strengths of 25 mg, 100 mg, and 150 mg.
Joseph Thomas, Head of Research - Emkay Wealth Management:
RBI has reaffirmed its commitment to support the economy and the markets, and have announced an additional Rs 50,000 crore TLTRO. This would be targeted at supporting corporates and smaller private entities. But the issue is that there no lending by banks nor any investment into sectors that require more support.
The reverse repo rate cut is to discourage thus reverse flow to RBI. But is doubtful whether this flow can be stemmed easily. Banks are not lending or investing because they fear that under the current conditions they may be adversely impacted if they employ the money for investments or lending.
Sundar Sanmukhani, Head of Fundamental research desk at Choice Broking
: RBI’s latest announcements to infuse liquidity and expand bank credit are expected to provide big relief to the NFBC sector as 50 percent of the proposed TLTRO worth Rs 50,000 crore will be invested in small and mid-sized NBFCs and MFIs.
The Central Bank has also relaxed NPA recognition norms for NBFCs. Banks would also get relaxation on Special mentioned a/c, which are unpaid with 60-90 days as on March, but have to make 10 percent provisioning against such standstill accounts.
Sahil Kapoor, Chief Market Strategist at Edelweiss Broking:
RBI has provided supplementary measures to address financial market liquidity, NPA recognition and operational concerns. Key measures which are likely to have a positive impact are a reverse repo cut, additional targeted LTRO for NBFCs and additional funds for HFC.
This along with relaxation in NPA classification norms is likely to sooth markets. We also expect RBI and government to bring in a COVID bond or monetize central government deficits. This could happen down the line. RBI's whatever it takes stance is encouraging. Market off highs is largely due to volatility.
Bank Nifty is up over 3 percent after RBI cut reverse repo rate.
Rashesh Shah, Chief Executive Officer of Edelweiss Group to CNBC-TV18:
LTRO is going to help the bond markets and thus the NBFCs. Even corporates are in the market to borrow money. We will need more measures going forward. Cash inflows are 5 percent of normal but outflows are 40-50 percent of normal.
L&T bags order
The Buildings and Factories Business of L&T Construction has secured orders from prestigious clients in India.
Market Update
Benchmark indices erased some of early gains with Nifty below 9200.
The Sensex is up 628.79 points or 2.05% at 31231.40, and the Nifty up 177.90 points or 1.98% at 9170.70. About 1457 shares have advanced, 422 shares declined, and 95 shares are unchanged.
The Sensex is up 740.56 points or 2.42% at 31343.17. Here's a look at the top index contributors:
Reserve Bank of India (RBI) has reduced reverse repo rate by 25 bps to3.75 percent from 4 percent.
