Sensex slips 536 points, Nifty ends at 9,154; financials decline
The domestic equity market ended in the red on Friday amid weak global cues. The decision of Franklin Templeton Mutual Fund (MF) yesterday to wind up six of its debt schemes also eroded sentiment.
The Association of Mutual Funds of India (AMFI) assured investors that majority of Fixed Income Mutual Funds AUM is invested in superior credit quality securities and schemes have appropriate liquidity to ensure normal operations and hence, investors should remain invested in Mutual Funds to create wealth over the long term.
The S&P BSE Sensex ended 536 points or 1.7 per cent lower at 31,327.22 levels while the NSE’s Nifty ended at 9,154.40, down 159.5 points or 1.7 per cent.
Among individual stocks, Bajaj Finance (down 9 per cent) and IndusInd Bank (down over 6.5 per cent) were the top Sensex laggards. HDFC slipped 5 per cent and HDFC Bank ended nearly 2 per cent lower. On the other hand, Reliance Industries (up over 3 per cent) was the lead gainer.
Secorally, barring Nifty Pharma, all the other indices on the NSE ended in the red. Nifty Bank slipped 3.36 per cent to 19,587 levels while Nifty PSU Bank index declined around 4 per cent to 1,263. Nifty Financial Services index declined nearly 4 per cent to 9,432 levels.
In the broader market, the S&P BSE MidCap index fell 1.77 per cent to 11,464 while the S&P BSE SmallCap index ended at 10,634, down 151.5 points or 1.4 per cent.
Bajaj Finance hits the lowest level since May 2018; stock tanks 59% in 2 months. Historically, the April-June quarter (Q1) is the largest contributor to assets under management (AUM) growth for Bajaj Finance, with roughly 40 per cent contribution to the total AUM growth, which will be a wash-out quarter during FY21. Also, the Reserve Bank of India (RBI) moratorium poses a greater risk for Bajaj Finance by providing longer disruption in the financial discipline of low-income borrowers of the company.
Alembic Pharma hits 52-wk high, rallies 20% in 3 days on robust Q4 numbers. The company’s total revenue during the quarter under review grew 30 per cent year-on-year (YoY) at Rs 1,207 crore against Rs 927 crore in the corresponding quarter of previous year. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) during the quarter jumped 95 per cent to Rs 339 crore from Rs 174 crore in Q4FY19. Ebitda margin expanded 900 basis points to 28 per cent from 19 per cent in the previous fiscal.
Bharti Infratel jumps 4% after March quarter results, pares gains later. However, the stock failed to hold the gains and declined over 9.6 per cent from intra-day high to as low as Rs 156.90 on the BSE. At 10:30 AM, the stock was down 5.21 per cent at Rs 157.50 against 1.43 per cent decline in S&P BSE Sensex.
Mahindra CIE hits 5% lower circuit as March quarter profit slips over 86%. The auto components maker had posted a consolidated profit after tax of Rs 153.72 crore in the corresponding quarter of previous fiscal. Consolidated revenue from operations in the first quarter stood at Rs 1,662.7 crores as compared with 2,174.39 crores in the year-ago period.
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