External Vs Internal Shock: Yes or No, to YES Bank?
On Friday, 26th April, YES Bank came out with disastrous results for the March 2019 quarter, reporting a surprise loss of almost Rs1,507 crore as provisions jumped to Rs3,661.70 crore—nine times higher year-on-year (y-o-y), from Rs399.64 crore in the year-ago period. This was a big shock for the market. Analysts were expecting a profit of Rs1,050 crore. YES Bank had reported a net of...
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Nifty, Sensex May Rally – Tuesday closing report
We had mentioned in Friday’s closing report that Nift, Sensex may move within last two weeks range. The major indices of the Indian stock markets were volatile throughout the day and closed with minor losses. On the NSE, there were 468 advances, 1326 declines and 319 unchanged. The trends of the major indices in the course of Tuesday’s trading are given in the table below:
 
 
The key equity indices opened on a dull note on Tuesday taking cues from the Asian markets which fell after China reported a weaker than expected manufacturing data. Besides, the markets also awaited US Fed policy decision, due Wednesday. The stock market was shut on Monday on account of polls in Mumbai. On Friday, Foreign Institutional Investors (FIIs) who have played a key role in pushing markets to fresh highs, sold Rs 70.73 crore worth of stocks while the Domestic Institutional Investors (DIIs) off-loaded scrips valued Rs 920.88 crore. The Indian stock markets will again remain closed on Wednesday, on account of Maharashtra Day.
 
Yes Bank fell up to 30% on the NSE on Tuesday after the private lender reported a weak earning results for the fourth quarter and multiple brokerages downgraded its stock. Yes Bank reported Rs 1,506 crore net loss, its first ever loss, on account of a spike in bad loans. This was followed by downgrades from agencies like Macquarie, Edelweiss, HSBC and Citi. India's eight core industries grew 4.7% in March 2019 as against 2.2% a month ago, data released by the Commerce Ministry on April 30 showed. On a year-on-year basis, the FY19 core industries growth remained unchanged at 4.3 percent.
 
The Supreme Court on Tuesday ruled against the government decision to merge 63 Moons, earlier Financial Technologies, with crisis ridden and loss making National Spot Exchange Limited (NSEL). The 63 Moons had moved the Supreme Court challenging the High Court's verdict giving nod to the government decision to merge it with its loss making subsidiary NSEL. The apex court allowed an appeal against a Bombay High Court order that upheld the merger decision.
 
Amid the rising number of cases admitted to the National Company Law Tribunal (NCLT), a Kotak report on Tuesday said that liquidation remained the most favourable closure for all the admitted claims under the insolvency resolution process. The report noted that nearly half of the ongoing cases have crossed 270 days since admission, which reflected poorly on the state of the resolution process in the country.
 
Out of the total registered cases till 4QFY19, 42% were from the manufacturing space and 19% from real estate, renting and business activities, the report said. The report concluded that under such circumstances, the number of cases facing liquidation will see a significant increase in the next few quarters. Besides, the report also noted that based on available data for all 94 cases resolved under the insolvency resolution process till 4QFY19, financial creditors have faced a haircut of 52% on admitted claims.
 
The shares of Eveready Industries plunged 20% to below Rs117, extending its decline in the past seven days on the BSE, after rating agency India Ratings and Research (Ind-Ra) downgraded the company's long-term credit rating giving it a negative outlook. “The downgrade reflects Eveready Industries’ continued high net leverage and weakened liquidity amid continuous financial support extended to group companies and delayed asset monetisation. The rating watch negative reflects delays in deleveraging which could further impact the company’s credit metrics and liquidity,” Ind-Ra said on April 25, in a press release. The stock was trading at its lowest level since October 2014.
 
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 
 

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Another Election, Another Theme?
Election results are just three weeks away. Every broker comes with a ‘buy’ report, with some theme or the other. The usual favourites are infrastructure and banking. And, of course, the consumer theme is perennial in India; every stock can be given a tinge of ‘consumer’ theme. A new government does not mean much of a change, though.
 
If we look back at governments and changes, the...
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