Share markets in India are presently trading on a volatile note, fluctuating between gains and losses.
Benchmark indices started today's session on a lackluster note. The BSE Sensex fell over 200 points in the first few minutes of trade. However, losses were erased thereafter as the Sensex gained over 100 points. Gains were again wiped out amid panic selling.
Presently, the BSE Sensex is trading down by 65 points.
Meanwhile, the broader NSE Nifty is trading down by 19 points.
The BSE Mid Cap index and the BSE Small Cap Index are trading up by 0.1% and 0.6%, respectively.
Sectoral indices are trading on a mixed note with stocks in the power sector and metal sector witnessing selling pressure.
On the other hand, telecom stocks are witnessing buying interest.
Gold prices are trading down by 0.4% at Rs 47,371 per 10 grams.
The rupee is currently trading at 76.16 against the US$.
Speaking of the current stock market scenario, note that the coronavirus impact has shaken markets worldwide.
For the BSE Sensex, FY20 was the second-worst year post FY08, the year of the global financial crisis.
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In news from the chemicals sector, the Navin Fluorine share price is among the buzzing stocks today. This comes as the company reported a 675% surge on a year-on-year (YoY) basis in its consolidated net profit at Rs 2,726.9 million in March quarter of 2019-20 (Q4FY20).
The company's sales rose 9.5% YoY to Rs 2,765.7 million in Q4FY20 as against Rs 2,525.8 million posted during the corresponding quarter last year.
The company posted a 52% YoY growth in its specialty business revenues to Rs 1,040 million on the back of strong performance in domestic and export markets driven by higher volumes.
CRAMS business revenues grew at 26% YoY to Rs 540 million on successful commissioning and operations of the cGMP-3 plant, and strong order book position.
For the full year, the company's net profit rose 174% to Rs 4,085.9 million in the year ended March 2020 and sales rose 6.6% to Rs 10,615.5 million.
Shares of the company surged 6% today after reporting a good set of numbers. The stock also got a lift from the company's update that the Covid-19 was unlikely to have any significant impact on its operations.
In an exchange filing, the company said that its management has carried out a detailed assessment of the impact of Covid-19 on its business operations and liquidity position, and on the recoverability and carrying values of its assets for the next one year, and is of the opinion that there won't be any significant impact of Covid-19 on its operations.
The company further said that it had temporarily suspended manufacturing operations at its facilities at Bhestan, Gujarat and Dewas, Madhya Pradesh. It restarted operations in these facilities from April 14, 2020, after obtaining requisite permissions from concerned government authorities.
Navin Fluorine's share price is presently trading up by 2.6%.
Moving on to news from the cement sector, as per a leading financial daily, Radhakishan Damani is considering acquiring a controlling stake in cement manufacturer company India Cements.
Damani, the owner of Avenue Supermarts, has informally reached out to the cement manufacturer's controlling shareholder, N. Srinivasan, to explore a takeover.
Srinivasan, who controls about 29% of the Chennai-based cement maker, is also exploring other investors to ward off any hostile bids. Reports state that Damani has promised a friendly change in management and isn't seeking a hostile takeover.
Note that Damani and his family have been piling on shares of India Cements for some months, and their holdings have quadrupled this year to about 20% as of March 31, 2020, exchange filings show.
Shares of the company surged as much as 11% today on back of the above news. So far this year, shares of the company have surged about 92%.
Reports state that a successful deal may help Damani diversify his holdings while India Cements would get a backer with deep pockets to gear it up against rivals such as UltraTech Cement and LafargeHolcim.
How this deal pans out remains to be seen. Meanwhile, we will keep you updated on the latest developments from this space.
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