Coronavirus impact: Steel demand to drop first time in 16 years in 2020; 7.7% dip expected

Coronavirus impact: Steel demand to drop first time in 16 years in 2020; 7.7% dip expected

ISA had projected a demand growth of 5.1 per cent for the industry but the revision was necessitated due to the extent of the pandemic that has forced India to go into a total lockdown for 40 days

NBFC sector leader Bajaj Finance has surpassed country's largest lender State Bank of India (SBI) in terms of market capitalisation. On BSE, market cap of SBI stood at Rs 1.69 lakh crore in early trade lower than the market cap of Bajaj Finance which rose to Rs 1.75 lakh crore today. The rise in market cap of Bajaj  Finance comes after the large cap stock rose up to 3.74% to Rs 2,948 against previous close of Rs 2,841.85 on BSE.

The stock which is the sole representative of NBFC sector on Sensex has gained 23% in last six sessions. It opened with a gain of 2.05% today.

The stock trades higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages.

Bajaj Finance share has gained 53.34% in last one month. On May 22, the stock closed at Rs 1896 on BSE. Of this, over 50% gains were recorded after Modi government allowed offices to open from June 1 with precautions to contain the spread of coronavirus cases in the country. The resumption of business and industrial activities has infused life into the stock of firm whose loan book comprises mostly of unsecured loans.

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On May 19, the stock closed at Rs 1,952. It hit an intra day high of Rs 2,948 today clocking 51% gain in June. On May 27, the stock hit a fresh 52 week low of Rs 1,783 on BSE.  Since then, the stock has gained 65% till date.

The NBFC reported a 19.38 per cent year-on-year (YoY) fall in net profit at Rs 948.10 crore for the quarter ended March 31.The firm which engages in giving loans made a contingency provision of Rs 900 crore for Covid-19 in Q4. Without Covid provision, the firm would have logged over Rs 1,800 crore in net profit in last quarter against Rs 1,176 crore net profit in Q4 of 2018-19.

Meanwhile, SBI share was trading 1,49% higher at  Rs 190.55 on BSE.

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Published on: Apr 20, 2020, 5:02 PM IST
Posted by: writava banerjee, Apr 20, 2020, 5:02 PM IST