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Markets maintain strong gaining momentum

13 May 2020 Evaluate

Indian equity benchmarks maintained their strong gaining momentum in late noon deals, despite weak cues from other Asian markets. Traders were positive, after India Inc said Prime Minister Narendra Modi's announcement of Rs 20 lakh crore stimulus package was the 'need of the hour' as it will pave the way for post pandemic recovery and unleash the next wave of economic growth. In his speech, Modi announced that the total stimulus India is marshalling together to limit the impact of the COVID-19 crisis on the economy will be a little less than 10 per cent of the GDP and Finance Minister Nirmala Sitharaman will be announcing the exact details soon.

On the global front, Asian markets were trading in red, as Malaysia's economic growth eased sharply in the first quarter due to the measures taken to contain the spread of the coronavirus, or Covid-19, pandemic. The data from Bank Negara Malaysia showed that gross domestic product grew 0.7 percent on a yearly basis, following a 3.6 percent rise in the fourth quarter of 2019. However, the economy was expected to shrink 1.5 percent.

The BSE Sensex is currently trading at 32071.40, up by 700.28 points or 2.23% after trading in a range of 31931.90 and 32845.48. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 1.50%, while Small cap index was up by 1.83%.

The top gaining sectoral indices on the BSE were Capital Goods up by 4.99%, Bankex up by 4.32%, Industrials up by 3.78%, PSU up by 3.41% and Basic Materials up by 3.41%, while Telecom down by 0.94% and Healthcare down by 0.77% were the only losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 6.26%, ICICI Bank up by 5.69%, Ultratech Cement up by 5.42%, Bajaj Finance up by 5.07% and Axis Bank up by 4.80%. On the flip side, Nestle down by 3.62%, Sun Pharma down by 2.49%, Bharti Airtel down by 1.71% and TCS down by 0.46% were the top losers.

Meanwhile, India Ratings (Ind-Ra) in its latest report has said that auto component industry is likely to register a second consecutive year of a double-digit degrowth in the current financial year (FY21) mainly on account of disruption in operations due to coronavirus (Covid-19) outbreak and the subsequent lockdown. It noted that the counter measures are likely to lead to lower income levels, weaker consumer sentiments, production disruptions, decreased industrial output as well as lesser movement of vehicles, resulting in a decline in global automobile demand and therefore, lower revenue and profitability for auto ancillaries in FY21.

Ind-Ra expects that the auto ancillaries industry on an average could record at least 100bp EBITDA margin decline in FY21 and the profitability decline for export focused auto ancillaries could be steeper as exports earn higher margins. It said the lower commodity prices could aid the profitability for the sector, though only to a limited extent, due to pass-through agreements with OEMs and OEMs' higher bargaining power. Also, it said some benefit may accrue to companies with overseas manufacturing units, as certain economies have announced support measures to meet part of the fixed costs during the shutdown period. It added that a depreciated rupee rate could partly offset the decline in sales volumes; however, the benefit is not expected to be significant.

However, the report stated that the revenue and profitability of auto ancillaries focused on domestic markets are likely to fare better due to higher content per vehicle on the back of evolving regulatory norms including BS-VI applicable from April 1, 2020. It said entities with a large reliance on overseas markets are expected to face a higher demand risk as the key markets of the US and Europe have been the most impacted by the virus, which could lead to uncertain business conditions.

The CNX Nifty is currently trading at 9415.70, up by 219.15 points or 2.38% after trading in a range of 9351.10 and 9584.50. There were 46 stocks advancing against 4 stocks declining on the index.

The top gainers on Nifty were Larsen & Toubro up by 6.25%, ICICI Bank up by 5.85%, UPL up by 5.58%, Ultratech Cement up by 5.58% and Bajaj Finance up by 5.42%. On the flip side, Nestle down by 3.50%, Sun Pharma down by 2.21%, Bharti Airtel down by 1.70% and TCS down by 0.35% were the top losers.

Asian markets were trading mostly lower; Nikkei 225 slipped 112.78 points or 0.55% to 20,253.70, Straits Times declined 8.02 points or 0.31% to 2,579.79, KOSPI inched down 0.03 points to 1,922.14, Jakarta Composite lost 41.90 points or 0.91% to 4,546.83 and Shanghai Composite was down by 5.34 points or 0.18% to 2,886.22. On the other hand, Hang Seng increased 1.96 points or 0.01% to 24,247.64 and Taiwan Weighted was up by 17.15 points or 0.16% to 10,896.62.

SEBI Registered: Investment Adviser - INA000013323

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
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Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
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SEBI Registration Number:	INA000013323 Validity - May 16, 2019 - Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Warning: Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Disclaimer: Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provides any assurance of returns to investors.

Compliance Officer:

Name: Shrikant Jagtap

Email: shrikant.jagtap@moneyworks4me.com

Mobile No: +91 97638 00745

Grievance Officer:

Name: Mukta Vaze

Email: mukta.vaze@moneyworks4me.com

Mobile No:+91 98609 19463

Principal Officer:

Name: Atharva Bhide

Email: atharva.bhide@moneyworks4me.com

Mobile No:+91 91758 99463

SEBI regional/local office address -

Plot No. C 4-A , G Block, Near Bank of India, Bandra Kurla Complex, Bandra East, Mumbai, Maharashtra 400051

Address:

The Alchemists Ark Pvt. Ltd., B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045

*Color code for outperformance consistency

*Number is average 3 year rolling returns

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