Expert's view on the market:
Expert's view on the market:
Expert's view on the market:
Expert's view on market:
Silver price update:
Neuland Labs Q4:
Outlook for gold:
Godrej Industries Q4:
PVR share price falls 2%:
Abhimanyu Sofat, Head of Research, IIFL Securities: The commentary of the governor's speech underpins the low prospects of a V-shaped recovery. RBI commentary indicates the stress in the economy on both demand and supply is likely to continue.
We also believe the government should provide subvention on existing loans or bear some cost of the haircut of existing loans. This would ensure more confidence for banks to lend to lower-rated entities or individuals.
Amar Ambani, Senior President and Head of Research – Institutional Equities, YES Securities: Repo rate cut of 40 bps was need of the hour given the depressed economic activity and collapsed demand. However, another RBI rate cut was quite factored in and as a result India's 10-year sovereign yields have moved lower by just 10 bps.
Nevertheless, equity markets were expecting more from the central bank in terms of incremental Open Market Operations, respite to the banks in terms of not having to MTM HTM portfolio, and so on. Not surprisingly, banking stocks are down in trade.
Though this announcement wasn’t a bazooka like the previous policy measures, there have been some positive measures like an extension of term loan moratorium and increase in lending limit to corporates.
For banks, the extension of moratorium by another three months has two sides. The clarity on the asset quality picture of the lenders will now emerge by March 2021 instead of September 2020. There is a risk of moral hazard issue creeping in, as borrowers who have the ability to pay, may even opt for the moratorium.
For MFIs and NBFCs catering to the bottom of the pyramid customers, the risk of repayment behaviour getting disturbed is higher. On the positive side, the moratorium extension gives more time to customers (professionals, small businesses, MSMEs and corporates) for recovery in earnings/repayment capacity in an easing lockdown scenario.
Thus, the probability of them slipping buckets after the end of the moratorium on August 31st diminishes, and therefore the NPLs spike for lenders could be lower than what is anticipated now.
Moratorium extension also gives time to lenders to strengthen their collection infra for retail products as restrictions on physical collection/follow-up eases out and the collection agencies would have had their migrant workforce back.
Dhiraj Relli, MD & CEO, HDFC Securities: The RBI has once again announced a repo rate cut post an unscheduled MPC meet. The RBI statement covers reliefs across a whole host of areas. The cautious language in the statement of the Governor raises concerns about the state of the economy and its path going ahead.
The markets have initially reacted negatively to the RBI announcement. The street, in a time when close to two-thirds of the country is under lockdown, keeps expecting more and more reliefs without knowing as to how each of these will be helpful. Shareholders of banks are worried about the current economic conditions and the pain due to the extended moratorium.
The government and the RBI may be using up all their ammunition a little prematurely to fight the current situation. One wonders whether all these relief measures would have been more impactful after the lockdown was completely lifted.
NTPC signs MOU with ONGC:
Vakrangee partners with CRGB:
RBI cuts repo rate:
Voluntarily dismissed lawsuit against Infosys:
Quick Heal makes investment in Ray:
RIL gains on KKR investment:
RBI Governor to hold a press conference:
Wall St ends lower:
KKR to invest in Jio Platforms:
Vinod Nair- Head of Research- Geojit Financial Services: Indian benchmark indices ended negative after the RBI measures again failed to appease the markets. The RBI and the government have created good liquidity conditions, but the onus is now on the banks to act on these measures. The measures were seen to aid borrowers but could impact lenders and as such financials were the major losers today. Global cues were also negative partly driven by renewed US-China tensions.
Sumeet Bagadia, Executive Director, Choice Broking: Nifty settled its weekly closing at 9,039 level with the loss of 67 points only and managed to close above its 9,000 level which is a good sign for the time being.
Starting session was muted on the back of Asian markets, however afterward we saw a good rally on the hope of better announcement from the RBI, however, the bliss couldn’t last for long and we witnessed a profit booking from the day high.
Although, the Index, in dying hours, recovered its early losses and managed to close above 9,000 levels. The way Index has been trading and the OI data placed, we may see a bounce back movement in the index up to the level of 9,245 while downside support comes at 8,915.
S Ranganathan, Head of Research at LKP Securities
Markets ended in the red ahead of a long weekend as the extension of the moratorium on loans by the RBI today weighed heavily on Financials. Select pivotals like Asian Paints, however, bucked the trend as the street seems to be betting on consumers painting their houses even as it fears that they may not repay their loans.
Sanjeev Zarbade, VP-PCG Research, Kotak Securities
Global markets were mixed during the week, while the US markets notched good gains; the Asian markets remained subdued.
The Hong Kong market fell 4 percent on tensions with China after reports came in that China is preparing a draft law, which could curb freedom for Hong Kong citizens. Tensions also elevated between the US and China.
The BSE-30 Index fell 1.3 percent in the current week as markets continue to price in a weaker macro. Most state governments have further relaxed lockdown norms in the current phase allowing gradual opening up of more districts.
ITC, Bharti Airtel and Tata Steel were among the top gainers while IndusInd Bank, Axis Bank and State Bank of India lost the most in the BSE-30 Index.
FPIs sold equities worth US$1.4 bn over the past five trading sessions while DIIs sold $906 million worth of equities in the same period. We advise investors to buy stocks with good management quality and strong balance sheets.
Market closing: Snapping the winning streak of the last three consecutive sessions, equity benchmarks Sensex and Nifty ended lower on May 22, dragged by losses in banks and financial heavyweights, including HDFC twins, ICICI Bank and Axis Bank.
Sensex closed the day 260 points, or 0.84 percent, lower at 30,672.59 while Nifty finished with a loss of 67 points, or 0.74 percent, at 9,039.25.
Broader BSE Midcap and Smallcap indices closed 0.83 percent and 0.23 percent down, respectively.
Among the sectors, BSE Finance and BSE Bankex lost 3 percent and 2.44 percent, respectively. On the other hand, IT and Teck indices rose 1.68 percent and 1.44 percent, respectively.
Silver futures trade near Rs 48,000: Silver rose to Rs 47,893 per kg on May 22 on escalating tension between the United States and China.
China plans to impose new security legislation on Hong Kong, which drew a sharp warning from US President Donald Trump that it would react 'very strongly' against this attempt, Reuters reported.
Silver holdings in iShares ETF jumped to a record high, up 246.43 tonne to 14,235.5 tonne.
In the futures market, silver for July delivery touched an intraday high of Rs 48,040 and a low of Rs 47,052 per kg on the Multi-Commodity Exchange (MCX). So far in the current series, the precious metal has touched a low of Rs 34,076 and a high of Rs 49,499.
Neuland Labs Q4: Consolidated net loss came at Rs 9.3 crore for Q4FY20 against the profit of Rs 6.6 crore in Q4FY19.
Cons revenue came at Rs 191.6 crore against Rs 172.7 crore YoY. EBITDA came at Rs 30.1 crore against Rs 18.5 crore YoY, while EBITDA margin came at 15.7 percent against 10.7 percent YoY.
Market update: Market benchmarks Sensex and Nifty are trading about a percent lower, mostly due to underperformance by banking and financial stocks.
HDFC twins, ICICI Bank, Axis Bank and Bajaj Finance are among the top drags, while IT players such as Infosys, Tech Mahindra and TCS are trading with decent gains.
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