Share indices crash 1.7%; RIL, HDFC twins biggest losers12 min read . Updated: 03 Aug 2020, 04:02 PM IST
- Sensex ends 618 points lower, RIL down 3%
- Nifty closes lower 1.6% at 10,896.75
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Indices closed deep in the red on Monday amid profit booking. Equities ended lower for the fourth day in a row with Nifty closing below 10,900. Sensex fell 1.77% to close at 36939.60, while Nifty fell 1.64% to end the day at 10891.60. UPL, IndusInd Bank, HDFC Life, Kotak Mahindra Bank and IOC were among major laggards on the Nifty, while Tata Motors, Titan Company, and Tata Steel gained the most.
Gold futures decline on MCX on lower spot demand
On the Multi Commodity Exchange, gold for August delivery fell 0.24% to ₹53,701 per 10 gram as participants offloaded their holdings on lower spot demand.
Bandhan Bank says Bandhan Financial Holdings diluted excess shareholding
Bandhan Bank said Bandhan Financial Holdings diluted excess shareholding of 20.95 % through secondary market sale. "Consequent to the above transaction, the shareholding of NOFHC in the Bank has been reduced to 40 per cent of the total paid-up voting equity capital of the Bank which is in compliance with the aforesaid Guidelines and the licensing conditions of the Bank," the lender said in its filing to the exchanges.
Oil slips below $40
Crude oil prices slipped below the $40 per barrel mark with OPEC+ producers started supplying more crude to a global market where many countries are still struggling to contain the coronavirus. The cartel will pump about 1.5 million barrels a day more this month than in July as it starts to unwind its historic virus-driven output curbs.
Wockhardt surges 10%
Wockhardt shares rose around 10% after the company announced covid-19 vaccine in partnership with UK government. The production will take place at CP Pharmaceuticals, a subsidiary of Wockhardt based in North Wales
European markets open in the green
European shares inched higher on Monday. German's DAX led the gains, rising 1.3%. Improvement in Chinese manufacturing data boosted sentiment, but a warning from Europe’s biggest lender HSBC over rising bad loans weighed on financials.
HSBC India reports 9.5% rise in pre-tax profit in first half of 2020
Global banking major HSBC on Monday said its India operations reported a profit before tax of $561 million in the first six months of 2020, up 9.5% from the same period last year.
Rupee settles 20 paise lower at 75.01
The rupee slipped 20 paise to end below the 75-per-dollar mark. The Indian currency settled at 75.01 tracking weakness in domestic equities.
Teamlease up nearly 4% on better prospects for margin improvement
Shares of temporary staffing company Teamlease Services Ltd, rose nearly 4% intraday on the NSE to ₹1914 as strict cost rationalization measures and exit from subdued businesses are expected to give its margins a shot in the arm. In the June quarter, its EBITDA margin increased 35 basis points on a year-on-year basis, to 2.2%.
Sun Pharma near 52-week high
Sun Pharma was near its 52-week high as the company's Ebitda margins improved marginally. “Sun Pharma’s operating margin improvement was in line with what others have reported and is likely because of a favourable foreign exchange rate and lower marketing spend in branded markets," said Kunal Dhamesha, pharma analyst, Systematix Securities Ltd.
Jet Airways up 5%
Jet Airways, which is undergoing an insolvency resolution process, has acquired ownership of six Boeing aircraft along with engines, according to a regulatory filing. The acquisition of the planes and engines has been funded from the proceeds of sale of the airline's Bandra-Kurla headquarters in the city last month. As per the filing, a buyout option was exercised whereby the company made payment of $13,000,000 to acquire ownership of six aircraft and engines.
Two-thirds of migrants have returned to cities or wish to do so: Report
Nearly two-thirds of migrant workers, who had left for home due to the coronavirus-induced lockdown, have either returned to cities or wish to do so in absence of skilled employment in villages, according to a new study that surveyed 4,835 households, PTI reported.
The study found that 29% of migrants, who had left for villages, are now back in cities, while 45% want to return to cities.
DCGI allows Serum to conduct phase 2 and 3 clinical trial of covid vaccine : Report
Asian shares mixed; concerns over rise in covid-19 cases weigh
Japan's benchmark Nikkei 225 closed 2.2% higher, while Hong Kong's Hang Seng dropped 1%. Shanghai Composite index jumped 1.7% while Australia's S&P/ASX 200 was flat. South Korea's Kospi inched 0.2% higher.
Motilal Oswal maintains buy on Sun Pharma
We have increased our earnings estimate by 9.5%/3% for FY21/FY22E to factor in outperformance in domestic formulations (DF) compared to the industry, coupled with recovery from covid-related disruptions and better margins. Accordingly, we have raised our price target to ₹635 from ₹525 earlier on 24x 12M forward earnings basis.
We believe SUNP’s RoE is at a trough and would improve with 19% earnings CAGR over FY20-22E, led by improving traction in the Specialty portfolio, enhanced MR efforts in DF, and better operating leverage.
Cipla sees exit of three top officials
Markets at day's low
Market fell to a two-week low, but pharma and PSU banking stocks outperform. Nifty Bank fell 1.41%.
Motilal Oswal on SBI
SBIN reported strong operating performance in a challenging environment. Deposit growth stood strong and aggressive cut in SA/TD rates enabled margin improvement unlike the decline for many other private banks. Slippages were lower, helped by the RBI’s dispensation, which resulted in an improvement in asset quality ratios. We believe that SBIN has prudently improved PCR over the last few years and has one of the lowest stressed assets amongst corporate banks. The proportion of moratorium book has improved further to 9.5% of terms loans (v/s 23% earlier). Further, the moratorium proportion is the lowest v/s peers. We, thus, upgrade our earnings estimate for FY21/FY22E by 8%/9% as we factor in higher NII growth. However, credit cost trends should remain high for FY21E, and thus, we estimate RoA/RoE of 0.5%/9.6% by FY22E. Maintain Buy with TP of INR285 (0.8x FY22E ABV for the bank).
Nifty top gainer and losers
Tata Motors and Titan were the top gainers on Nifty, while UPL and Indusind Bank were the main laggards. HDFC Life and Kotak Bank lose 3% each.
Sensex dips 1.5%; Titan, Tata Steel lone gainers
BSE Small Caps gain, Unichem Lab jumps 20%
Bank of India's net profit surges in June quarter
Bank of India's net profit surges ₹8.44 bln in June quarter against ₹2.43 bln a year ago. Interest earned was at ₹102.34 bln as against ₹103.32 bln a year ago. Shares gain 3.4%
Auto sales accelerate in July, but investors not enthused
Sales engines of auto companies are revving up, but the demand pick-up is largely being seen in the mini-passenger vehicle and personal mobility segment. While the uncertainty driving the auto sector has diminished to an extent, covid-19 challenges still persist. The Street’s reaction to the auto numbers shows that investors are not quite convinced that demand will persist. The Nifty Auto index was trading flat on Monday.
RBI Board to meet on 14 August to mull dividend to Govt: CNBC-TV18
Bandhan Bank sheds 11%
NMDC July iron ore output up 12.9% at 2.19 mt
NMDC July iron ore production up 12.9% YoY at 2.19 mt. Sales up 6.6% at 2.57 mt
P Chidambaram's son Karti tests positive for covid-19, in home quarantine
TVS Motor July sales up on a monthly basis at 252,744 units
TVS Motor sales rose to 252,744 units from 198,387 units sold in June. The company sold 279,465 units a year ago.
TikTok owners will relocate to London from Beijing, announcement due soon, says Reuters quoting Sun newspaper
Tata Motors, Titan gain on Nifty
Sensex down over 1%
Titan and Tata Steel were the lead gainers among the 5 constituents that were in the green. Indusind Bank and Kotak Bank were the biggest laggards.
Yes Securities says sell Mahindra Logistics at target of ₹226,
Mahindra logistics (MLL) reported topline of ₹4.1 bln, down 54.3% yoy. The performance was impacted by nationwide lockdown due to the Covid-19 pandemic as significant reduction in industrial activity, and weak business sentiment reduced logistics requirement. Despite higher contribution from the better margin warehousing segment, gross margin remained stagnant at ~9.7% owing to subdued utilizations. Also, lower revenue and higher employee expense translated into loss at operating level (Rs.22mn). While Supply Chain Management (SCM) segment de-grew ~51% yoy, a larger hit was seen in the Enterprise Mobility (EM) division wherein revenue declined ~82% yoy. The performance in the EM segment was hit hard by lesser requirement of transportation with large part of clients’ employees continuing to work from home.
Indian Oil down 2% due to 47% fall in June quarter profit
IOC shares fell 2% as the nation's biggest oil firm on Friday reported a 47% drop in its June quarter net profit as pandemic outbreak pummeled fuel demand and shrank refining margins.
Bandhan Bank extends loss
Bandhan Bank slumped 11% after a huge block deal. Though the details of the buyers and sellers were not known, the bank's promoter Bandhan Financial Holdings, which currently owns a 60.95% stake in the bank, was expected to sell up to 337.40 million shares through a block deal today to reduce his stake in the bank to meet RBI regulations.
Yes Securities says sell Bluedart Express
Bluedart reported 47.2% yoy decline in revenues during Q1 FY21 largely impacted by COVID-19 related lockdown. The revenue decline was due to a similar decline in volumes while realization remained largely stagnant. During the quarter, volumes were driven by higher share of packages while document shipments were lower. As several offices were shut during lockdown shipment of documents was severely impacted. The Company provided 20-25% discount on shipments related to medical equipment’s. The Company levied Emergency Situations Surcharge on certain shipments to offset the low capacity utilization which supported realizations to some extent. However, the sharp drop in volumes saw Company report loss at operating level.
NSE Sectoral Indices
While PSU banks gained, their peers in private sector fell nearly 2% . Auto and pharma companies outperform
India's factory activity contracts at a sharper pace in July
India's factory activity remained below 50 in July as renewed lockdown measures to contain surging coronavirus cases weighed on demand and output, raising the chances of a sharper economic contraction. The Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, fell to 46.0 last month from 47.2 in June.
Dr Lal PathLabs says Q1FY21 was hit due to the lockdown
Dr Lal PathLabs' Ved Goel tells CNBC-TV18 that Q1FY21 was impacted due to the lockdown but non-covid business is now back to 90% levels
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The markets are still within the range of 11000-11100 but at the lower end where it is very close to nudging the psychological 11000 level. This is crucial. A break below the 10975 mark would make for short term weakness which could take the Nifty down by 150-200 points. On the upside, the resistance is lowered from 11300 to 11200. We need to go past that for a positive trend to emerge. Since we have commenced the new month, the monthly support and resistance levels to keep an eye for are 10700 and 11400 respectively.
Rupee opens lower at 74.90 per US dollar against Friday's close of 74.81
Nifty Auto gains 1% led by Tata Motors
Bajaj expects to clock sales of 3.5 lakh units in August
Bajaj Auto expects to clock sales of 3.5 lakh units in August but Rajiv Bajaj said he is anxious about demand post festive season. On MEIS withdrawal, Bajaj says that there will be a severe impact
Indices weak, dragged down by banking stocks
Markets remained weak with indices down nearly 1%. Sensex was at 37,262.15, while Nifty at 10,975.30. The BSE Bankex was down 1.7% at 24,171.11 points. The Nifty banking index fell 1.3%. HDFC Bank was biggest laggard
BSE Midcap gains 0.6%
Gold prices hit record high
Gold prices cross record level of ₹54,200 per 10 gm, up 0.13% on Monday
BSE Auto Index
Tata Motors gained 6%
Bandhan Bank falls 9% after block deal
Bandhan Bank slumped over 9% on Monday after a huge block deal which saw 345.6 million shares changing hands in bunched trade, Bloomberg reported.
Though the details of the buyers and sellers were not known, the bank's promoter Bandhan Financial Holdings, which currently owns a 60.95% stake in the bank, was expected to sell up to 337.40 million shares through a block deal today to reduce his stake in the bank to meet RBI regulations.
Auto companies gained, while finance companies fell
NSE sectoral indices
Sensex, Nifty open lower
Shares indices open lower today. Sensex opened at 37,375.34, down 0.62%, while Nifty fell 11,010.25, down 0.57% .
Indian stock markets fell slightly in pre-opening session on Monday. At 9:06am, Sensex was down 0.05% at 37,585.40 points, while Nifty was at 11,073.45, down 0.3%
Coal India July provisional offtake down 7% YoY
Coal India said its July provisional offtake was down 6.9% YoY at 43.39 mt. July provisional production down 3% YoY at 37.36 mt
Sensex, Nifty end lower on Friday
Sensex ended at 37,606.89, down 129.18 points or 0.34% and the Nifty closed at 11,073.45, down 28.70 points or 0.26%.
Stocks to Watch
Shares of Maruti Suzuki, Hero MotoCorp, Bandhan Bank, Cadila, IOC, M&M are likely to be in focus today
Indian equities seen choppy, Asia mixed
Indian markets may likely to trade volatile on Monday following global cues. Trends in SGX Nifty suggest a negative opening of benchmark indices.
Asian share markets turned mixed on Monday as US lawmakers struggled to hammer out a new stimulus plan amid a global surge of new coronavirus cases, though a squeeze on crowded short positions gave the dollar a rare bounce.
Sentiment was helped by a survey showing China's factory activity expanded at the fastest pace in nearly a decade in July, with the Caixin/Markit PMI at 52.8.
Japan's Nikkei added 2.1% amid a pullback in the yen, while South Korea shares were flat.
US equities end higher Friday amid gains in tech companies
US equities end higher Friday amid gains in tech companies
The Wall Street closed higher on Friday on the back of strong earnings from US technology firms. Shares in Europe though fell on Friday on concerns over the economic recovery amid the covid-19 pandemic.
The dollar gained but posted its worst month in a decade. Oil prices gained, on news that US output cuts in May were the largest on record. Gold hovered near its all-time high.
The dollar has been weak on expectation the US Federal Reserve will be forced to maintain its ultra-loose monetary policy for years, a policy seen as debasing the currency.