Published on 30/04/2020 1:12:16 PM | Source: LKP Securities Ltd

Bulls Hold Tight GRIP Over Dalal Street - LKP Securities

Posted in Top Stories| #Market Outlook #LKP Securities Ltd

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Bulls were holding their tight grip over the Dalal Street in late morning deals, tracking firm Asian markets. Traders were positive, after India has been placed at 53rd position among 117 nations in terms of budget transparency and accountability. The survey, conducted by International Budget Partnership (IBP), has provided India's Union Budget process a transparency score of 49 out of 100, which is higher than the global average of 45. Traders took a note of former Union minister and Rajya Sabha member Suresh Prabhu’s statement that India should leverage technology towards manufacturing in the post-COVID-19 scenario to tap consumption-based economies like the US and Japan.

On the global front, Asian markets were trading in green, despite China's manufacturing sector conditions weakened slightly in April as the impact of the coronavirus globally led to a substantial fall in export sales. The Caixin manufacturing Purchasing Managers' Index fell unexpectedly to 49.4 in April from 50.1 in March. A score below 50 indicates contraction in the sector. The score was expected to rise to 50.3.

The BSE Sensex is currently trading at 33729.51, up by 1009.35 points or 3.08% after trading in a range of 33354.93 and 33778.34. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 2.03%, while Small cap index was up by 1.89%.

The top gaining sectoral indices on the BSE were Auto up by 5.13%, Metal up by 5.02%, IT up by 4.67%, TECK up by 4.14% and Realty up by 4.07%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Hero MotoCorp up by 8.19%, HCL Tech up by 6.03%, Tata Steel up by 5.47%, Infosys up by 5.25% and Maruti Suzuki up by 4.76%. On the flip side, Sun Pharma down by 1.52%, Hindustan Unilever down by 1.15% and Asian Paints was down by 0.61% were the top losers.

Meanwhile, ratings agency ICRA in its latest report has said that power demand is likely to decline by 1 percent in the current financial year (FY21) with electricity distribution companies’ (discoms) losses widening by almost Rs 20,000 crore as a lockdown due to coronavirus pandemic continues to impact economic activities. It said thermal plant load factor (PLF) is also expected to fall by 54 percent in FY 2021 as compared to 56 percent in FY 2020.

According to the agency, electricity consumption from high tariff paying industrial and commercial consumers has significantly declined due to the lockdown. It noted that this has in turn impacted revenues and cash collection by discoms from these high tariff paying consumers as well as other customer segments. As a result, it said the book loss level for the discoms at all India level is likely to increase by Rs 20,000 crore in FY2021. It added that any extension in the lockdown period would have further downside risk for the demand growth.

The report further stated that the decline in thermal PLFs would further delay the resolution of stressed thermal assets, a majority of which are impacted by lack of long-term power purchase agreements. On the other hand, delay in collection by discoms would aggravate the payment delays by them to power generation companies, which are already reeling under large payment dues of more than Rs 92,000 crore as of February 2020. In this context, it said the timely and adequate liquidity support from the respective state governments, including the payment of regular agriculture subsidy, remains extremely crucial.

The CNX Nifty is currently trading at 9845.30, up by 291.95 points or 3.06% after trading in a range of 9731.50 and 9860.40. There were 46 stocks advancing against 4 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 13.05%, Hero MotoCorp up by 8.74%, Hindalco up by 7.74%, Vedanta up by 7.71% and HCL Tech up by 5.89%. On the flip side, Sun Pharma down by 1.42%, Hindustan Unilever down by 0.99%, Asian Paints down by 0.48% and Cipla was down by 0.06% were the top losers.

All Asian markets were trading in green; Nikkei 225 jumped 569.34 points or 2.88% to 20,340.53, Straits Times surged 56.31 points or 2.19% to 2,631.04, Taiwan weighted soared 188.32 points or 1.75% to 10,960.54, Jakarta Composite climbed 109.54 points or 2.40% to 4,676.86 and Shanghai Composite was up by 36.77 points or 1.30% to 2,859.21.


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