Sensex, Nifty end a tad higher; Infosy, Sun Pharma drag18 min read . Updated: 07 Aug 2020, 03:38 PM IST
- Sensex, Nifty marginally higher and held on to their psychological mark; Infosys, HCL Tech down; Nifty Auto, Metals gain
- Mindspace Business Parks REIT makes stock exchange debut, ends 10% higher over its issue price
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Sensex, Nifty end marginally higher
Key equity indices closed marginally higher on Friday in a largely lacklustre trading session. However, both Sensex and Nifty ended above their psychological levels.
The BSE Sensex closed at 38,040 points, up 15 points from previous close. Bajaj Finance and Maruti were among the top gainers, while HCL tech, M&M, Infosys and Sun Pharma were the major laggards on the index. Of the 30 shares, 16 advanced, while 13 declined and one was changed.
Mindspace Business Parks REIT, which made its stock exchange debut today, closed 10% higher over its issue price.
Nifty ended 15 points higher 11,216. Bajaj's financial companies and Asian Paints were the prominent gainers, while HCL Tech and Infosys were the laggards. On the 50-share index, 32 gained and 18 lost.
Among sectoral indices, Auto and Metal outperperformed, while Nifty IT closed in the red.
India smartphone sales to recover second half after halving in June quarter: IDC
Smartphone market in India is expected to recover in the second half of 2020 after a steep decline in shipments in the June quarter due to covid-19, International Data Corporation (IDC) India report states in its latest quarterly mobile tracker.
According to IDC, higher demand for low and mid-range smartphones among buyers during the October-November festive season is expected to drive up sales and the recovery of the market.
Due to ongoing supply chain challenges, many of the phone brands have shifted to direct imports to meet the pent-up demand after the lockdown. This surge in demand is expected to continue throughout the first half of September quarter as well, forcing brands to ensure a steady supply of devices.
Many of the local manufacturing units struggled to get labour back in June and had to work at much lower capacity. Some factories had to be shut down after re-opening due to detection of covid-19 cases among factory workers.
Asian Paints, Bajaj Finance top gainers
Dabur takes immunity vans to residential areas to sell products
Packaged consumer goods company Dabur India has deployed “immunity vans" across residential areas and other spots in cities of Lucknow, Kanpur, Varanasi, Indore, Bhopal, Nagpur, Jabalpur etc., to sell its range newly launched, as well as existing immunity and health products to shoppers.
The move is in line with growing consumer shift toward health and immunity boosting products, especially as concerns around covid-19 pique consumer interest in such categories.
The maker of Real Fruit juice and health products such as Chyawanprash, and packaged honey said it is deploying these vans to “give consumers access to immunity-boosting products at their doorsteps".
Indian Overseas Bank cuts base rate to 9.35%
State-owned Indian Overseas Bank on Friday slashed its base rate to 9.35 per cent.
"The asset lability management committee of our bank decided to reduce the base rate to 9.35 per cent from the existing 9.45 per cent, effective from August 10, 2020," IOB said in a regulatory filing.
Torrent Power up 4%
Torrent Power's consolidated net profit jumped 35.2% to ₹373.87 crore in the quarter ended 30 June. Net sales declined to ₹3,007.05 crore in Q1 from ₹3736.13 crore a year ago. Profit before tax (PBT) soared 46.3% to ₹467.82 crore in Q1. The shares rose as much as 9% intraday.
Gates Foundation to provide Serum Institute $150 million funding for producing 2 vaccines
The Bill & Melinda Gates Foundation will provide at-risk funding of $150 million to support Serum Institute of India’s manufacturing of two promising vaccines by University of Oxford and Novavax under the condition that the Pune-based firm prices the two vaccines at a maximum of $3 per dose for India and other low- and middle-income countries.
Asian indices in the red
Asian equities closed lower today with Hong Kong's HangSeng clocking biggest loss of 1.6%. CHina's Shanghai Composite fell 1% while Nikkei declined 0.4%.Australia's ASX fell 0.6%.
Rupee closes flat
The Indian rupee closed at 74.94 against the US dollar against previous close of 74.93
Gold futures rise on spot demand
Gold prices on Friday rose ₹75 to ₹55,920 per 10 gram in futures trade as speculators created fresh positions on firm spot demand.
On the Multi Commodity Exchange, gold contracts for October delivery traded higher by ₹75, or 0.13 per cent, at ₹55,920 per 10 gram.
Gold prices traded 0.14 per cent higher at USD 2,072.20 per ounce in New York.
Emami reports flat Q1
Tata Consumer shares re-rate after Q1; valuations match Britannia
Tata Consumer Products Ltd’s shares have undergone a massive re-rating since its June quarter results. True, the non-alcoholic beverages and food company delivered strong set of results, with pre-tax earnings increasing by around 42% year-on-year.
But the stock’s 14% jump in three trading days is clearly taking things a bit far. In fact, Tata Consumer shares now trade at nearly 47.3 times estimated FY22 earnings based on Bloomberg data. Valuations are now slightly ahead of packaged foods company, Britannia Industries Ltd’s stock, which currently trades at about 46.6 times FY22 estimated earnings. Britannia’s pre-tax earnings had increased by 81% for the June quarter.
Both companies have benefitted from a spike in at-home food consumption as more people spent time indoors to protect themselves from the coronavirus.
RBI announces names of members of expert committee for debt recast
The RBI on Friday announced the names of members of the KV Kamath committee on debt restructuring. They are Diwakar Gupta, TN Manoharan, Ashvin Parekh and Indian Banks' Association CEO.
The central bank on Thursday announced setting up of an expert committee under the chairmanship of veteran banker K.V. Kamath to make recommendations to RBI on the required financial parameters, along with the sector-specific benchmarks for the special window.
Europe stocks decline
Stocks in Europe declined on Friday with Euronext declining 0.4% and France's CAC losing 0.3%. Germany's DAX and London's FTSE were largely flat.
Emerging markets like India staring at prolonged health, economic crises: IMF
The International Monetary Fund has said emerging market (EM) economies like India are likely to face an uphill task in reviving their economies as their outlook remains clouded by considerable uncertainty, given the persistent spread of the coronavirus pandemic and rising corporate default risks.
"Chief among many risks is the possibility of a more prolonged health crisis, which would hurt more lives and could have dire economic consequences. As the crisis develops, there is also a high risk that liquidity problems morph into solvency concerns. Besides sovereign debt stresses, corporate default risks are alarmingly high in a number of emerging market economies," IMF economists said in a blogpost.
M&M down 1% as Q1 consolidated profit declines 92%
Mahindra & Mahindra's consolidated net profit declined 92% YoY to ₹67.8 crore in the June quarter. Consolidated revenue fell 56% to ₹5,589.4 crore.
Broad market indices
Nifty Midcap outshines
Xiaomi to make new version of MIUI to adhere to India’s apps ban
Chinese smartphone maker Xiaomi, which leads the Indian smartphone market in terms of sales, is developing a new version of its MIUI software to adhere to the Indian government’s ban on Chinese apps. Xiaomi’s apps, including Mi Browser Pro and Mi Community, were amongst the apps that were on the banned list. Xiaomi India Head, Manu Jain, posted a statement on Twitter on Friday announcing that the company is complying with the ban.
"We want to clarify that none of the apps blocked by the Indian Government are available for access on any Xiaomi phones launched in India," Jain said. "We are developing a new version of MIUI that will be built without pre-installation of any of the blocked apps."
Trump passes executive order on procuring essential drugs from US firms
In a potential trouble for Indian pharmaceutical companies, US President Donald Trump on Thursday passed executive order to ensure that the world’s largest market procures ‘essential medicines’ from domestic production and reduce their dependence on foreign imports.
The executive order, which is a part of Trump’s ‘buy American’ plan, comes on the back of the covid-19 pandemic in China, which led to a severe disruption in pharmaceuticals. The US preseident had even highlighted it in his speech at Whirlpool Corporation’s manufacturing plant in Ohio, US on Thursday.
“As we’ve seen in this pandemic, the United States must produce essential equipment, supplies, and pharmaceuticals for ourselves. We cannot rely on China and other nations across the globe that could one day deny us products in a time of need," Trump said.
Pidilite Industries up 4%
Pidilite Ind says recovery from June has continued into July, but it’s difficult to give any guidance for the year as outlook is uncertain, CNBC-TV18 reported.
PM Modi says there is political will, commitment to implement New Education policy
Prime Minister Narendra Modi Friday said there isfull political will and his complete commitment to implement the new National Education Policy (NEP), sidelining any criticism for the policy that has come after a gap of 34 years.
“There is political will. And I am fully committed, and is standing with the new education policy," PM Modi said while addressing a day long symposium on higher education reforms.
He said it’s natural that people are discussing how this policy will be implemented but underlined that “NEP is not mere government circular" and asked the union education ministry, educationists and in institutions to work hard and show willpower to implement it on the ground.
Alembic Pharma up as Q1 profit rises
Alembic Pharma reported a consolidated profit of ₹885.2 million in the June quarter against a net profit of ₹367.8 million a year ago.
Five dead, 80 feared trapped in landslide at Kerala's Munnar
Five people were killed and at least 80 others feared trapped after a landslide in Kerala's biggest tourism hub, Munnar in Idukki district
Kerala CM Pinaray Vijayan tweeted: "An NDRF team has been deployed to rescue the landslide victims in Rajamalai, Idukki. Police, Fire Force, Forest & Revenue officials have been instructed to join the rescue efforts. Another team of NDRF, based in Thrissur, will soon reach Idukki."
Jaishankar, Pompeo discuss efforts to combat covid, peace process in Afghanistan
Minister of external affairs S Jaishankar and his US secretary of state Mike Pompeo discussed a host of issues in a telephonic conversation overnight Friday, including the “recent destabilizing actions in the region". The efforts to combat the covid-19 pandemic and peace process in Afghanistan were among the other mattersdiscussed.
A US readout of the conversation said both leaders agreed to “continue close cooperation on a full range of regional and international issues". It said the US looked "forward to Quadrilateral consultations and the US-India 2+2 Ministerial Dialogue later this year".
BSE Mid Cap gains
BSE Midcap outperforms, up 1.3%
Nifty sectoral indices
Barring Nifty Pharma and Nifty IT, all sectoral indices in the green
Sensex at noon
Asian Paints, Bajaj Finance and Maruti among top gainers, while Infosys and HCL Tech prominent laggards
Sebi issues norms for stock exchange subsidiary to regulate investment advisors
he Securities and Exchange Board of India (Sebi) has allowed stock exchanges to propose a subsidiary to regulate investment advisors. There are around 1,300 Sebi-registered investment advisors (RIAs) in India. These comprise both traditional face-to-face advisors and new-age online platforms.
Sebi had established the first set of rules governing investment advisors in 2013 and has progressively tightened regulations since then to combat mis-selling and fraudulent stock tip operators.
Trump signs executive orders banning Chinese apps TikTok & Wechat: Report
US President Donald Trump has signed executive orders banning TikTok and WeChat, terming the popular Chinese apps a threat to the country's national security and economy, PTI reported.
The ban comes into effect in 45 days, Trump said in two separate executive orders signed on Thursday.
India was the first country to ban TikTok and WeChat, citing national security concerns. India has banned as many as 106 Chinese apps, a move welcomed by both the Trump administration and US lawmakers.
Low travel may keep investors from checking into Indian Hotels stock
With leisure and business travel at a standstill, hotels are facing the brunt of the travel bans. Hotel chains, such as The Indian Hotels Co. Ltd, naturally reported a sharp downturn in business, and the lower occupancy could be a feature of the coming quarters too.
Shares of Indian Hotels, though, have held up well in the recent past despite the turmoil surrounding the business, and were trading flat on Friday.
Sensex flat, Asian Paints top gainer
Keshav Lahoti, Associate Equity Analyst, Angel Broking on Vodafone Idea
On a consolidated basis, Vodafone Idea revenue de-grew by 9.2% QoQ to ₹10,659 cr due to decline in subscribers as well as ARPU. ARPU declined by 6% QoQ to ₹114. ARPU for the quarter was negatively impacted due to customers inability to access their regular retailers to recharge and extension in validity of minimum recharge plan during lock-downs.
EBIDTA registered degrowth of 6.4% QoQ to ₹4098 cr. Although, EBIDTA margins improved by 110 bps QoQ to 38.4%. Company reported loss of ₹25,460 cr including ₹19,923 cr exceptional loss mainly attributable to AGR provision. Post this loss, net worth of the Company has turned negative and stands at ₹(19,492) cr.
Revenue missed street expectation but EBIDTA was above forecast due to improved margins. Vodafone Idea's ability to continue as a going concern is highly dependent on a positive outcome on AGR matter before the Supreme Court for the payment in installments. Considering the fact that Vodafone Idea continues to lose market share, net worth is negative and is also making losses at PAT level, we advise investors to avoid Vodafone Idea. Bharti Airtel is our preferred pick in the telecom space."
Nifty IT slips
The Nifty Auto slipped 1% dragged by Infosys, HCL Tech
Nifty Auto at a glance
Nifty Auto gains nearly 1%
JK Tyre & Industries down
The company reported a consolidated net loss of ₹204.17 crore in the first quarter ended June 30, hit by lower sales due to coronavirus pandemic. JK Tyre had posted a net profit of ₹16.12 crore in April-June period of previous fiscal.
M&M Q1 revenue likely to decline 60%
Mahindra and Mahindra Ltd (M&M), India’s largest tractor manufacturer, is expected to report a 60% decline in its consolidated revenues for the June quarter on the back of low sales due to covid-19 lead disruptions.
According to Edelweiss Securities Ltd, M&M’s consolidated revenues are expected to be at ₹5,260 crore. The brokerage estimates M&M’s June quarter earnings before interest, taxes, depreciation and amortization or Ebidta to be at ₹531 crore against 1,794 crore in the year-ago period.
“Despite a ~60% fall in revenues, M&M’s Ebidta margins are expected to decline by only 3.5% YoY to 10.6%, cushioned by a significantly higher share of tractors," the brokerage said in a preview report.
The Indian rupee was at 74.98 against the US dollar, down 4 paise in early trade.
Lupin down 6% as Q1 net profit falls 59%
Lupin posted a 59% slump in its consolidated net profit year on year for the April-June quarter at ₹108.2 crore as the covid-19 pandemic and lockdowns imposed to curb it dragged sales of its medicines in India and US.
The company’s consolidated revenue from operations were down 9% at ₹3,529 crore, with operating margins contracting 530 basis points to 14.7% in the quarter. However, the margins were up 90 bps on a quarter-on-quarter basis.
Mindspace REIT debuts at 10% premium over issue price
Mindspace Business Parks REIT on Friday made its stock exchange debut at ₹302, a 10% premium over its issue price of ₹275. After Embassy Office Parks, this is the second real estate investment trust (REIT) listing on the bourses.
Owned by K Raheja group and Blackstone, the company's initial public offering (IPO) with a price band of ₹274-275 was open for subscription between 27-29 July. The issue to raise upto ₹4500 crore was subscribed 13 times.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
We have opened below the levels of 11200 which indicates that the markets are still not fully convinced on the upside. We would need to get past and close above 11200 for the markets to enter a bullish zone. To be more specific, we should trade higher than yesterday's closing which was 11256. On the downside, a close watch needs to be kept for 11100 - the breaking of this can derail the market direction and we could see some correction.
ICMR seeks participation from hospitals for national clinical registry of covid-19 patients
The Indian Council of Medical Research (ICMR) has invited letters of intent from institutions and hospitals identified as dedicated covid-19 hospitals or healthcare centres to establish “National Clinical Registry of COVID-19".
Through the registry, the apex medical research body, along with the health ministry and All Indian Institute of Medical Sciences in New Delhi, aims to collect data regarding clinical and laboratory features, treatments, and outcomes of hospitalized covid-19 patients in India.
The data will help ICMR and other health agencies to study the frequency, clinical and laboratory features, treatments, and outcomes of covid-19 related multisystem inflammatory disorder in children and adolescents, the research agency said in the invitation letter which was seen by Mint.
Gold prices set new highs, jump Rs1,000 in 2 days; silver rates surge
Gold and silver prices moved higher today in Indian markets continuing their recent momentum. On MCX, October gold futures rose ₹300 to a new high of 56143 per 10 gram. Silver futures rallied ₹1,750 or 2.3% to ₹77,802 per kg. In the previous session, gold had surged 1.3% or ₹720 per gram, hitting an intraday high of ₹56,079 per 10 gram, while silver had jumped 5.6% or ₹4,100 per kg. In India, gold is up 44% this year, tracking a global rally.
Adani Electricity sells Yes Bank shares worth ₹202 crore
Adani Electricity Mumbai, the electricity distribution arm of Adani group that supplies power to India's financial capital, sold Yes bank shares worth ₹202 crore through open market transactions on Thursday, according to data available with the stock exchanges.
The bulk deal data available with NSE showed that Adani Electricity Mumbai sold 15 crore shares at an average price of ₹13.45 apiece, with the transaction value at ₹201.75 crore.
Sensex flat after opening in the red. ONGC and Asian Paints trade with gains
The BSE Midcap was 1% higher
Top gainers on Nifty were UPL and BPCL, while HCL Tech and Infosys were biggest losers.
Nifty sectoral indices
Nifty Bank, Realty and IT were the biggest losers among sectoral indices
Markets open in the red
Benchmark share indices opened in the red on Friday, in line with Asian markets. Banks were trading lower. ONGC was the biggest gainer.
Nifty FMCG was the top gainer among sectoral indices. Nifty Midcap was higher.
Sensex at open
Sensex opens 0.6% points lower
Sensex at pre-open
Sensex 96 points lower at pre-opening session
Trump advisers urge delisting of US-listed Chinese cos: Report
US administration officials have urged President Donald Trump to delist Chinese companies that trade on US exchanges and fail to meet US auditing requirements by January 2022, Reuters reported quoting Securities and Exchange Commission and Treasury officials on Thursday.
The remarks came after Trump tasked a group of key advisers, including Treasury Secretary Steve Mnuchin and SEC Chairman Jay Clayton, with drafting a report with recommendations to protect US investors from Chinese companies whose audit documents have long been kept from US regulators.
LIC’s gross NPAs in debt soars to 8.17%
Life Insurance Corp. of India (LIC) disclosed weak financials and a surge in bad loans, hit by high exposure to stressed sectors such as real estate, the growing inability of borrowers to repay loans and downgrades of certain investments amid the covid-19 pandemic.
According to the latest data issued by LIC, the state-run insurer’s gross non-performing asset (NPA) ratio in its debt portfolio jumped to 8.17% at the end of March 2020 from 6.15% in fiscal 2019. On a net basis, the NPA ratio has risen to 0.79% during fiscal 2020, from 0.27% during fiscal 2019.
The government is likely to divest up to 10% stake in LIC to meet its divestment target and compensate for the widening fiscal deficit.
Mindspace Business Parks REIT listing
Mindspace Business Parks REIT will be listed on the bourses today. The ₹4,500-crore initial public offering (IPO) with an issue price of ₹274-275 was subscribed 13 times.
Indian equities likely to be volatile
Markets are likely to be volatile on Friday, while trends in the SGX Nifty suggest a flat opening for benchmark indices.
On Thursday, the BSE Sensex closed at 38,025.45, up 362.12 points or 0.96% and the 50-share index Nifty was at 11,200.15, up 98.50 points or 0.89%.
Stocks to Watch: Vodafone Idea, Yes Bank, HPCL
Shares of Vodafone Idea, Yes Bank, HPCL, Jubilant FoodWorks, Lupin and IHCL
will be in focus today.
Mahindra & Mahindra, Cipla and Abbott India are among the prominent companies that will report their quarterly earnings today.
Asian stocks weak
Asian equities were trading lower with China's Shanghai Composite Index and Hang Seng in Hong Kong down 0.7% each. Japan's Nikkei was 0.43% lower while
Taiwan TSEC 50 index fell 0.36%. Australia's ASX was down 0.4%.
US markets end higher on Thursday
US equity markets edged higher on Thursday as investors awaited word on a new stimulus to counter economic fallout from the coronavirus crisis.
The Dow Jones Industrial Average rose 0.68%, while S&P 500 gained 0.64%. The Nasdaq Composite ended 1% higher , marking the fourth straight day of record peaks and closing highs.