Sensex, Nifty jump 2% led by heavyweights HDFC Bank, RIL
17 min read . Updated: 04 Aug 2020, 03:41 PM IST- Nifty reclaims 11,000 points, Sensex closes at 37,688 points
- RBI clears Sashidhar Jagdishan's name as the next CEO of HDFC Bank
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Markets surge 2%
Indian share indices jumped 2% on Tuesday led by gains in heavyweights HDFC Bank and Reliance Industries.
Bank Nifty gained 2% as investors cheered RBI's approval of Sashidhar Jagdishan's name as the next MD & CEO of HDFC Bank.
Sensex gained 748 points to close at 37688. It touched the day's high of 37745 points.
Nifty ended with a gain of 203 points at 11,095. It touched the day's high of 11112 points. On the index, 32 stocks advanced and 18 fell.
Besides RIL and HDFC, Zee Entertainment, Maruti Suzuki and Hero MotoCorp gained the most. Tech Mahindra, BPCL, Indusind Bank, HCL Tech were the prominent laggards.
Sun Pharma up 2%; to sell covid-19 drug favipiravir in India
Sun Pharmaceutical Industries said on Tuesday it would soon begin selling its version of favipiravir, becoming the latest generic drugmaker to supply the antiviral to treat covid-19 in the world's third worst-hit nation.
Godrej Consumer Products down 2% as consolidated profit dips in Q1
Godrej Consumer Products shares fell 2% as the company's consolidated profit fell ₹3.95 billion in the June quarter against ₹4.08 billion a year ago. The company clocked sales of ₹23.11 billion against ₹23.31 billion
BPCL falls 2%
SC orders Centre, states to ensure timely pension to senior citizens
The Supreme Court on Tuesday directed the Centre and state governments to ensure continuity in payment of old age pension. It also ordered adequate care and necessary provisions to senior citizens amid the covid-19 pandemic.
Department of Economic Affairs' monthly report suggests worst could be over for economy
Department of Economic Affairs' (DEA) monthly report suggests that the worst seems to be over for the economy with major indicators showing improvement but the rising pandemic cases & re-imposition of lockdowns have made recovery prospects fragile.
Europe markets fall
European shares fell after opening higher, following a mixed bag of earnings. After a rally on Monday, the pan-European STOXX 600 fell 0.6% and London's FTSE 100 lost 0.7%.
Asian shares gain
Asian shares rose on Tuesday after US manufacturing data and gains in tech stocks boosted investor sentiment and helped them look past broader worries about the coronavirus and global economy.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.9%, while Chinese equities booked marginal gains. Australian stocks jumped 2%, clocking their biggest intraday gains since 21 July. Shares in Japan gained over 1%.
JPMorgan dominates market for Indian share sales: Report
Share sales by listed Indian firms are at a three-year high, and JPMorgan Chase & Co. is right on top of it, according to a report by Bloomberg.
The U.S. bank has worked on the two largest follow-on offerings in India this year and currently holds a 19% market share, according to Bloomberg League Tables.
It’s the first time JPMorgan has topped the ranks since at least 2009, having almost tripled its share from last year. Citigroup Inc. usually dominates this market, ranking number one in seven of the past 11 years, the tables show.
Companies have raised $15.5 billion through additional share sales in India this year, the most since 2017, when firms sold $18.7 billion worth of stock, data compiled by Bloomberg show.
Google buys $450 million stake in home and business security provider ADT : Report
Google is paying $450 million for a nearly 7% stake in longtime home and business security provider ADT Inc., a deal that will open new opportunities for one of the internet's most powerful companies to extend the reach of its Nest cameras and voice-activated voice assistant, news agency AP reported.
As part of the partnership, ADT will use Nest's internet-connected cameras, as well as another device called the Nest Home Hub that comes with an internet-connected camera, as part of its customers' security systems.
BSE down 2% after weak Q1 performance
Shares of BSE Ltd fell 2% to ₹501.50 after it reported a 21.4% decline in net profit to ₹32.48 crore in quarter ended June 30.
Total income declined 2.33% to ₹162.11 crore in the quarter under review from ₹165.97 crore in the corresponding quarter a year ago.
Motilal Oswal says buy Tata Chemicals
Plants across locations are now operational. However, the key bottleneck is in terms of demand from the end user industry, which is dragging down performance. Demand for soda ash is under pressure as demand for flat glass, which finds application in the Real Estate and Auto sectors, remains muted. This is likely to weigh on performance in the near term.
TTCH is incurring capex of INR24b at its Mithapur plant for various categories, expected to come on line in a phased manner. TTCH’s cash-cow business (soda ash and sodium bicarbonate) is expected to remain relatively stable; cash generated from the business would be partially deployed toward the Specialty Chemicals segment.
Factoring the miss in our estimates and a weak end user industry demand scenario, we cut our EBITDA estimates by 14%/6% for FY21/FY22 and arrive at an SOTP-based TP of INR368. Maintain Buy.
Rupee closes at 75.05 per dollar
Rupee closes at 75.05 per dollar, slightly off day's high but weaker compared to the previous close
JSPL July steel output rises to 7.4 lakh tonne
JSPL on Tuesday said its July steel sales and output increased as compared to the year-ago period with Managing Director V R Sharma noting that India Inc is getting back to normalcy.
JSPL's consolidated crude steel output rose 13% to 7.40 lakh tonne in July from 6.56 lakh tonne in the same month last year. The company's consolidated sales also improved to 7.62 lakh tonne, up 25%.
Exide rises 1.7%
Shares of Exide jumped 1.7% to ₹157.15 as secondary market sales inched up in the first quarter. But the decline in auto sales during the first quarter had an impact on Exide’s volumes. The first quarter’s hit in original equipment sales dragged down revenues by about 44% year on year in Q1.
Rajit Rajoriya, equity research associate, Angel Broking, on July passenger vehicle sales
On account of good pent up demand, Maruti Suzuki, India's leading car manufacturer, witnessed mere -1.1% decline in July month auto sales number after reporting 0 sales in April, 86% decline in May, 54% decline in June. Passenger car sales de-grew by 2%, on the other hand Utility vehicle registered a robust 26.4% growth in July month YoY basis.
Mahindra's Utility vehicle sales number fell by 34% on YoY basis. Hyundai Motor also reported a sales number with a decline of 2.1% in Passenger car and Utility vehicles combined.
Car segment being discretionary in nature will see slow recovery owing to the pandemic given the lowered income levels across the classes and poor sentiments of consumers.
India July unemployment rate down at pre-covid levels
India's overall unemployment rate in July fell to pre-covid months, indicating that the mass job loss crisis seen in the past three months was almost over.
Fresh unemployment data from Centre of Monitoring Indian Economy (CMIE) showed that the overall unemployment rate in July has come down from a 10.99% in June to 7.43% in July. This number is even lower than March when the overall unemployment rate in India was at 8.75%.
Heavy rains lash Mumbai
The Maharashtra government announced a holiday for all its offices in Mumbai city and suburbs on Tuesday in view of the heavy rainfall in the metropolis and neighbouring areas, a PTI report said.
Heavy showers caused water-logging at several places in the city and disrupted local train services and road traffic movement.
Nifty IT index
Adani group, Suraksha, Sunteck Realty submit EOI to acquire debt-laden HDIL
Adani Properties, Suraksha Asset Reconstruction and Sunteck Realty are among six players which have shown initial interest to acquire debt-laden HDIL through the insolvency resolution process, according to a regulatory filing.
Adani Properties and Suraksha group had participated in the insolvency resolution process of Jaypee Infratech, which eventually was acquired by the state-owned NBCC. HDIL shares were up 5%.
Ashok Leyland subsidiary Optare delivers first of 21 battery-electric Metrodecker EV with First York
Crude oil holds near $41 per barrel
Oil held near $41 a barrel in New York after the biggest gain in two weeks as investors weighed additional OPEC supply hitting the market against signs of an economic recovery across major economies.
OPEC’s crude output rose last month led by Saudi Arabia ahead of the group and its allies relaxing its historic cuts this month, according to data compiled by Bloomberg. Oil futures added 1.8% on Monday for a second daily increase, tracking stronger equities after U.S. manufacturing rapidly expanded in July, while euro area factories returned to growth.
Nifty top gainers and losers
Sensex constituents
Varun Beverages reports sharp decline in earnings
Kishore Biyani's personal debt delays RIL-Future Group's deal
A large loan of around ₹2,000 crore taken by Future Group-founder Kishore Biyani in his personal capacity is acting as a hurdle before the proposed deal entailing the acquisition of retail and lifestyle businesses of Future Group by Mukesh Ambani-promoted Reliance Industries Ltd.
Two persons directly aware of the ongoing discussions confirmed this, adding that a final decision on resolving the personal debt issue and conclusion of the ₹23,000-crore, all-cash deal may be taken within 10 days.
SpiceJet to commence flight services to UK from next month
SpiceJet has secured slots at the London Heathrow Airport, which will allow the airline to commence flight services to the UK from next month.
These slots, under the air bubble pact, will later be extended to operate regular flight services once international flight services are resumed, SpiceJet said in a regulatory filing.
Why investors must take Q1’s cost savings with some scepticism
The first-quarter results reported so far for a large chunk of companies have not been all that bad. While revenues plunged substantially, the remarkable cost-cutting exercises have meant that companies were able to lower the impact on operating profit. As a result, several companies showed a profit growth that was a step or two ahead of analysts’ expectations.
Sensex, Nifty rally; HDFC Bank gains most
Sensex rose 1.5% and Nifty clocked nearly 2% gains. Nifty Bank gained as HDFC Bank surged after the RBI approved Sashidhar Jagdishan as the next chief executive officer of the lender.
On the Sensex, the HDFC twins and RIL ruled, while HCL Tech and Tata Chemicals were the major laggards.
On the Nifty, ZEEL gained the most and Indusind Bank was the biggest loser.
Yes Securities says buy CreditAccess Grameen, target ₹650
CREDAG’s standalone operating performance was stronger than expected with NII up 6% and PPOP up 11% qoq (excl. assignment income and one-time exp.), despite loan portfolio down 2% qoq (stood at Rs96.8bn) on negligible disbursements.
PAT was weighed down by Covid related prov. of Rs1.41bn (cumulative at 2.4% of portfolio). ECL now stands at 4.4% v/s Gross NPL at 1.6%. Madura Microfinance’s (MMFL - 76% holding of CREDAG) operating performance was muted with 11% qoq decline in both NII and PPOP (excl. assignment income) v/s loan portfolio contraction of 3% (stood at Rs20.4bn). Covid related provisions were Rs120mn (cumulative at 1.1% of portfolio). ECL now stands at 3.2% v/s Gross NPLs at 1.6%.
VST Industries surges 8%
VST Industries rose 8% to ₹3498.70 after its June quarter earnings. Profit rose to ₹757.1 million against ₹756.8 million. Revenues increased to ₹3.15 billion against ₹3.29 billion
Gold steadies near record high as virus concerns linger
Gold prices were steady near record highs on Tuesday amid concerns over spike in covid-19 cases and the global economic fallout from the pandemic.
On MCX, October gold futures were up 0.2% to ₹53,865 per 10 gram.
Hurricane Isaias hits North Carolinas, heads for New York
Hurricane Isaias made landfall and is moving inland over North Carolina as it sweeps north, posing the second tropical threat in a month to New York, Bloomberg reported.
The hurricane, which may cause $1.5 billion in losses, has prompted tropical storm and hurricane warnings from South Carolina to Maine, including Manhattan, with the flood threat reaching well inland and as far north as Vermont, according to the National Weather Service.
The storm doesn’t pose a threat to any major oil refineries or platforms. Temporary flood barriers and sandbags have been deployed in New York, particularly in the Wall Street area, to defend against the storm thrusting sea water into streets.
Global manufacturing sector moves back into expansion territory
The global manufacturing sector has moved back into the expansion territory in July, courtesy revival in output and new orders. The JP Morgan Global Manufacturing purchasing managers index (PMI) rose to a six-month high of 50.3 in July, up from 47.9 in June. The index is back above the neutral 50 mark for the first time since January. A reading above 50 separates expansion from contraction. Of the 27 nations for which July data were available, 13 had PMI readings above the crucial 50-mark, said the survey report.
China hopes India would keep Confucius Institutes off curbs
China on Tuesday expressed hope that New Delhi will treat Confucius Institutes in a fair and objective manner, and avoid politicizing of such cooperation.
Confucius Institutes are public educational partnerships between colleges and universities in China and colleges and universities in other countries. They have played an important role in promoting Chinese language teaching in India, besides fostering people-to-people and cultural contacts.
Angel Broking outlook on Nifty Bank
Both Nifty and Bank Nifty are placed at 'Make or Break' levels and in the first half of the current week, all suspense will unfold whether we are likely to
correct further or not. The RBI monetary policy is slated this Thursday and this might become the catalyst for the next directional move.
The Bank Nifty is very close to its recent swing low of 21027 and it would be seen as a crucial support. If the index slides and stays below it we could see a strong decline towards 20700-20400 levels. Whereas on the flipside, if
any reversal has to happen, this is the level from where it can. Any
positive trigger would result in a sharp bounce back in coming
days. As far as intraday resistance levels are concerned, keep a
close eye on 21250 -21550
Billionaire Milner nears $400 million funding in Byju’s: Report
DST Global, the investment firm headed by billionaire Yuri Milner, is close to investing as much as $400 million in Indian online education startup Byju’s, Bloomberg reported quoting a person familiar with the negotiations.
The deal values Byju’s at $10.5 billion and could be signed as early as this weekend, said the person, who didn’t want to be identified as the talks are private.
The transaction would make Byju’s India’s second-most valuable startup after Alibaba Group Holding-backed financial payments brand, Paytm.
PVR slides 1.6%
PVR's rights issue has been subscribed 2.23 times, according to data available with stock exchanges. Its rights issue opened on July 17 and closed on July 31. According to issue subscription data, PVR proposed to issue 38.23 lakh equity shares.
Rupee opens weak
The Indian rupee opened 14 paise lower against the US dollar at 75.15. The domestic currency closed at 75.01 on Monday tracking fall in equities and concerns over surge in covid-19 cases in the country.
Colgate stock makes investors smile even in covid-19 times
Shares of Colgate Palmolive (India) Ltd have been resilient are about 5% lower on the NSE from their pre-covid highs in January. In fact, even since the pandemic began, the stock has touched its 2020 high in April.
The oral care category broadly remains unaffected during this pandemic crisis, therefore offering a cushion to Colgate’s sales.
“We think Colgate is one of the most stable companies in a very stable daily consumption category relatively unaffected by any demand shocks; we view this as a strong advantage in current unstable times," point out analysts from Nomura Financial Advisory and Securities (India) Pvt. Ltd.
Sensex, Nifty extend gains
The Sensex rose 315 points to 37,255.02. HDFC Bank, RIL, ONGC were the top gainers on the index. The Nifty was at 10,981, up 0.8%.
RBI approves Sashidhar Jagdishan's name for HDFC Bank CEO
Angel Broking says buy Bharti Airtel, ICICI Bank, HDFC Bank
Angel Broking's top picks for buy today: Bharti Airtel, Aarti Industries, ICICI Bank, HDFC Ltd, IDFC First Bank.
The brokerage has advised 'accumulate' on Britannia Industries and RIL
Nifty IT underperforms
Nifty IT fell 0.46%, becoming the only loser on the index. US President Donald Trump has signed an executive order preventing federal agencies from contracting or subcontracting foreign workers -- mainly those on H-1B visa -- from hiring. The H1B visa, most sought-after among Indian IT professionals, is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise.
Jubilant Life Sciences hits 52-week high
Jubilant Life Sciences hit a 52-week high of ₹909 as its subsidiary Jubilant Generics Ltd launched the covid-19 treating drug remdesivir under the brand name ‘JUBI-R’ at ₹4,700 per vial in the Indian market.
Yes Bank gains over 2%
Yes Bank gained over 2% as ratings agency Moody’s on Monday upgraded the private sector lender’s long-term foreign currency issuer rating by one notch from Caa1 to B3, citing the bank’s recent success in raising capital. “The outlook on Yes Bank's ratings where applicable is changed to stable from positive," said Moody’s. The bank recently raised ₹15,000 crore bolstering its capital adequacy ratios.
BSE Mid Cap up 0.6%
All sectoral indices in the green
Sectoral indices were in the green at opening session. Nifty Auto and Nifty Bank were the leaders
Nifty losers/gainers at open
Tata Steel was the biggest gainer on Nifty, while UPL lost the highest
Sensex gains 0.7%
Sensex rose in early trade. Bajaj Auto, Maruti and Kotak Bank led the gains. Power Grid was the biggest laggard on the index
Markets open higher
Equity markets opened higher on Tuesday tracking global stocks which rose on positive data in the US. Sensex opened 242 points higher at 37124,
while Nifty was 60 points at 10956.
Sensex constituents at pre-open
Market pre-opening
Sensex and Nifty were slightly higher in pre-open trade amid positive global cues. Sensex was at 37,040, up 138 points, while Nifty rose 43 points to 10,934 points
BMC curtails bus services in Mumbai, asks offices to remain shut amid heavy rainfall: Report
Bus and train services have been halted and altered in Mumbai owing to incessant rain on Tuesday, the Brihanmumbai Municipal Corporation (BMC) said and asked offices in the city to remain shut, news agency ANI reported.
Former Karnataka CM Siddaramaiah tests covid- 19 positive
Former Karnataka chief minister and Congress' leader of the opposition, Siddaramaiah has tested positive for covid-19. He is undergoing treatment at Manipal Hospital.
In a statement, the hospital said Siddaramaiah is doing well and is stable currently.
Trump ousts board members of US largest public utility over outsourcing jobs
US President Donald Trump on Monday formally removed two members from the board of the Tennessee Valley Authority for seeking to outsource US jobs to foreign workers, and criticized its chief executive as "ridiculously overpaid".
Indian markets may open on a positive note
Indian markets are likely to open higher on Tuesday with trends in SGX Nifty indicating a positive start for Indian benchmark indices.
On Monday, the BSE Sensex ended at 36,939.60, down 667.29 points or 1.77% and the Nifty closed at 10,899.85, down 173.60 points or 1.57%.
Stocks to Watch
Jubilant Life Sciences, Yes Bank, GMR Infra and IT companies will be in focus today.
Among major companies, Godrej Consumer Products, Gujarat Gas and Varun Beverages will announce their June quarter results today.
Trump signs executive order on H-1B visa
US President Donald Trump on Monday signed a new executive order on aligning federal contracting and hiring practices with the "interest of American workers". The order called for prohibiting US employers from using H-1B workers to displace Americans in outsourcing contracts.
Asian stocks rally
Asian stocks rose on Tuesday tracking US equities that gained on positive economic data.
Equities in Japan, Australia and South Korea outperformed.
The S&P 500 index rose 0.7%. Australia’s S&P/ASX 200 gained 2.2%.
Korea’s Kospi rose 1.3%, while Hang Seng gained 0.9%. The Shanghai Composite Index was flat.
US stocks close higher on Monday
US equities rallied on Monday amid encouraging data from around the world and as Microsoft's pursuit of TikTok's US operations lifted mood.
The Dow Jones Industrial Average rose 0.89%, while S&P 500 gained 0.72%. The Nasdaq Composite closed at a record high of 1.47%.
Gold prices retreated from a record high after profit booking. The dollar rose against a basket of currencies as investors unwound some recent short positions after the currency posted its weakest monthly performance in a decade in July. Gains were slowly pared as the day progressed.
Oil prices rose as manufacturing data from the United States, Europe and China offset oversupply fears fueled by the OPEC and its allies winding back output cuts.
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