Sensex, Nifty book 4th straight day of gains; Banks, metal stocks rally18 min read . Updated: 11 Aug 2020, 03:38 PM IST
- Indian benchmark share index notched up gains for fourth straight session, buoyed by banks and metal stocks amid positive cues from global peers
- Sensex settled at 38,407.01, up 224.93 points or 0.59%, while Nifty closed 52.35 points or 0.46% higher at 11,332.20
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Indian benchmark share index notched up gains for fourth straight session, buoyed by banks and metal stocks amid positive cues from global peers.
Sensex settled at 38,407.01, up 224.93 points or 0.59%, while Nifty closed 52.35 points or 0.46% higher at 11,332.20.
"We have stayed above the 11250 mark the entire day and even attempted levels closer to 11400. We should be able to achieve 11500 soon. The short-medium term support for this market is at 11250," said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
Axis Bank, closing nearly 4% higher, was the top Sensex gainer, followed by IndusInd Bank, ITC, HDFC and Tata Steel. Titan, Bharti Airtel and HCL Tech were among the laggards on the other hand. Of 30 Sensex shares, 8 closed in the red.
Top laggards on Nifty IT
Lupin launches Zileuton Extended-Release Tablets
Pharma major Lupin Limited has announced the launch of Zileuton
Extended-Release Tablets, 600 mg, having received an approval from the US FDA earlier. The product would be manufactured at Lupin’s Nagpur facility, India.
Zileuton Extended-Release, is the generic equivalent of Zyflo CR® Extended-Release Tablets of Chiesi USA, Inc. and is indicated for the prophylaxis and chronic treatment of asthma in adults and children 12 years of age and older.
Top gainers on Nifty FMCG
Top gainers on Nifty Bank
Bajaj Electricals reports Q1 net loss of ₹16.60 cr
Bajaj Electricals on Tuesday reported a consolidated net loss of ₹16.60 crore for the first quarter ended June 30, 2020, on account of lower income.
The company had posted a net profit of ₹13.70 lakh in the April-June quarter a year ago, it said in a BSE filing.
Its total income during the quarter under review stood at ₹615.34 crore, down 53.3%, as against ₹1,317.99 crore in the corresponding quarter last fiscal.
Crude oil futures rise on firm demand
Crude oil prices on Tuesday rose by Re 1 to ₹3,162 per barrel as participants widened their positions on firm spot demand.
On the Multi Commodity Exchange, crude oil for delivery in August traded higher by Re 1, or 0.03%, at ₹3,162 per barrel in 3,653 lots.
Analysts said raising of bets by participants kept crude prices higher in futures trade here.
Globally, West Texas Intermediate crude oil rose 1.10% to USD 42.40 per barrel, while Brent Crude was trading up 0.87% to USD 45.38 per barrel in New York. (PTI)
President Vladimir Putin says Russia's coronavirus vaccine has been registered; his daughter is among those inoculated. (AP)
Rupee settles 12 paise higher at 74.78 against US dollar. (PTI)
GE Power Q1 highlights
GE Power's net loss widened to ₹180.2 million in June quarter from ₹87.6 million in the year ago period.
Orders received for the quarter ended 30 June 2020 were ₹5,321 million as against ₹24,601 million for the quarter ended 30 June 2019.
Total income during Q1FY21 stood at ₹4,465 million down 4%, compared to ₹4,671 million in Q1FY20 and down by 42% compared to ₹7,737 million in Q4FY20.
EBIDTA (before interest income and expense and depreciation) for the three months ended 30 June, 2020 was 0.1% compared to 0.2% for the three months ended 30 June, 2019.
The quarter ended with backlog of ₹74,980 million (as against ₹73,795 million at 31 March 2020) considering to the sales and orders of the quarter.
Crisil reaffirms rating on Jubilant Foodworks
Crisil has reaffirmed its 'A1+' rating on the commercial paper programme of Jubilant Foodworks Ltd. The credit ratings agency has also withdrawn its rating on ₹100 crore commercial paper programme at the company's request.
Hang Seng ends 2% higher
Hong Kong shares finished on a healthy note Tuesday, boosted by hopes for upcoming China-US trade talks and optimism that lawmakers in Washington will eventually push though a new stimulus package.
The Hang Seng Index rose 2.11 percent, or 513.25 points, to 24,890.68.
The benchmark Shanghai Composite Index shed 1.15 percent, or 38.96 points, to 3,340.29, while the Shenzhen Composite Index on China's second exchange retreated 1.49 percent, or 33.97 points, to 2,243.45.
Mother Sumi Systems posts ₹1,192 cr loss for Q1
Auto components maker Mother Sumi Systems Ltd on Tuesday reported a consolidated net loss of ₹1,191.65 crore for June quarter 2020 hit hard by the coronavirus pandemic.
The company logged a net profit of ₹360.64 crore in the same quarter last fiscal, Mother Sumi Systems Ltd (MSSL) said in a regulatory filing.
Total revenue from operations during the quarter under review stood at ₹8,503.89 crore. It was at ₹16,792.53 crore in the year-ago period.
SBI Capital Markets to arrange ₹15,000 crore debt for Numaligarh refinery expansion
Numaligarh Refinery Ltd (NRL), a subsidiary of the state-run Bharat Petroleum Corporation Ltd (BPCL), has appointed SBI Capital Markets for debt syndication of ₹15102 crore, for expanding its refinery.
BPCL holds 61.65% stake in NRL, while Oil India holds 26% and the government of Assam owns 12.35%.
However, as part of its strategy to divest stake in BPCL, the government last November decided to carve out NRL from BPCL. Oil India Ltd and Engineers India Ltd-led consortium have agreed to buy 48% stake in NRL.
Motilal Oswal maintains 'buy' on Titan Company
Motilal Oswal has maintained 'buy' rating on Titan Company with a target price of ₹1,300. "Titan’s (TTAN) 1QFY21 results were broadly in line with estimates. Gold volumes declined by 81% during the quarter. However, decent recovery was seen in Jun’20 with Tanishq’s like-to-like growth declining 18% YoY. The recovery prospects in the jewelry segment (over 80% of sales) appear brighter with good demand in Jul’20 (101% of sales in Jul’19, albeit aided by weak base and significant activation in Jul’20) and first week of Aug’20 as well. We have upgraded the stock to Buy in our Annual Report analysis note last week. Maintain Buy with a TP of INR1,300 with 17% upside," the brokerage said.
HCQ leads to ₹259 crore additional sales for Ipca Lab in Q1
One of the world’s largest manufacturers of hydroxychloroquine, Ipca Laboratories Ltd, garnered ₹259 crore in additional sales from the drug in April-June (Q1) was was said to be useful in treating covid-19.
“Overall, hydroxychloroquine and chloroquine business related to covid what we have done in Q1 is almost around ₹259 crore on consolidated basis and that has also contributed significantly to margins overall for the company. This is the incremental business from last financial year particularly on account of covid," Ipca Laboratories managing director A.K. Jain said in an investor conference call.
Brokers, AMCs see better June quarter earnings than insurers
As stock markets remained volatile in the first quarter of fiscal 2020-21, companies that derive their business from investing in capital markets reported mixed earnings in the April-June period. Brokerage firms and asset management companies (AMCs) saw better earnings in the fiscal first quarter than insurers.
The quarter was also challenging for domestic mutual fund industry as active equity inflows declined while contributions from systematic investment plan (SIP) shrunk due to a correction and volatility in the stock markets. (Full report)
Jindal Steel, SAIL, Voltas top gainers on BSE MidCap index
ICICI Lombard up 0.33%
ICICI Lombard General Insurance, India’s largest private non-life insurer, is in advanced discussions to acquire Bharti AXA General Insurance Co. Ltd and merge the insurance assets of the two companies, according to a Mint report.
Pidilite needs a quicker recovery to strengthen its bond with investors
The June quarter earnings of Fevicol-maker Pidilite Industries Ltd were disappointing on many fronts. Key contributor to the company’s revenues -- the consumer and bazaar (C&B) segment -- saw volumes decline around 59%. This fall was higher than what was being anticipated. Secondly, in spite of lower raw material cost, gross margins declined by 190 basis points sequentially, to 53.5%. One basis point is one hundredth of a percentage point.
In a post earnings conference call, the company’s management said that business gradually improved in July with more than 90% of retail outlets open. The recovery was driven by C&B segment notwithstanding the localized lockdown in a few states, the management said. Further, benefits of easing raw material costs are expected to reflect in the September quarter earnings. (Full report)
Shree Cement stock punished for relatively poor cost control vis-a-vis peers
Shares of pan-India focused Shree Cements Ltd fell more than 4% to ₹21,424 on the National Stock Exchange in opening trade on Tuesday. This was mostly in response to the company's earnings for the June quarter, which largely disappointed.
Cement sales volumes fell 19% year-on-year to 4.93 million tonnes in the June quarter. Even though the decline was lower than the industry's 30-35% fall, it was largely because a relatively low base helped Shree Cements. Also, growth in realisations was flat sequentially in the June quarter. (Full report)
Titan Co. loses lustre in Q1FY21; investors eye speed of recovery hereon
Titan Co. Ltd’s stock was trading more than 4% lower on NSE in early deals on Tuesday. This follows the company’s lacklustre June quarter results declared post market hours on Monday.
As such, covid-19–led disruptions had kept expectations muted to begin with. Even so, Titan’s standalone net loss of ₹270 crore is higher than the loss of nearly ₹153 crore that a Bloomberg poll of analysts had estimated. (Full report)
Bank of Baroda shares decline over 3% on weak Q1 earnings
Shares of Bank of Baroda on Tuesday declined over 3% after the company reported a net loss of ₹864 crore on a standalone basis in the quarter ended June.
The company's stock went lower by 3% to ₹47.05 on the BSE.
Geojit Financial Services retains 'buy' on Tech Mahindra
Geojit Financial Services has retained 'buy' rating on Tech Mahindra stock with a target price of ₹779. "Tech Mahindra’s revenue grew 5.2% YoY to Rs. 9,106cr, while declined 4.0% on a QoQ basis. In USD terms, on a constant currency (CC) basis, revenue degrowth 6.3%/ 1.8% on QoQ/YoY in Q1FY21. EBITDA declined 1.0% YoY with margin contracting 91bps YoY to 14.3% on account of higher employee cost. Clocked deal wins of USD 290mn (declined 43.5% QoQ), impacted by delays in closure of some of enterprise deals. Also, no. of active clients stood at 981 in Q1FY21. While valuation looks expensive in the short-term, we remain bullish on TechM’s long-term outlook, with strong growth seen in the enterprise segment and gradual recovery in the communication vertical. We retain our BUY rating on the stock with a target price of Rs. 779 on 15x FY22E adj. EPS," the brokerage said.
SRF shares soar as it commissions new specialty chemicals facility
Shares of SRF Ltd hit a new 52-week high this week after the company said it commissioned a new facility to produce specialty chemicals in Gujarat. This comes on the back of a packaging film plant addition in Europe and an approval to set up a chloromethanes plant in Gujarat.
Simultaneously, the company said it delayed polytetrafluoroethylene plant by one year due to adverse global economic environment. Even so, the company’s tactical investments are serving it well. (Full report)
Yes Securities puts 'buy' on CONCOR
Yes Securities has put 'buy' rating on Container Corporation of India (CONCOR) with a target price of ₹419. "We expect revenues to be under pressure in FY21 with subdued volumes and increasing competition. Also, margin is likely to be under pressure with higher scheduled payment towards LLF. With normalization of current scenario and improved volumes, we expect revenue and margin pressure to improve in FY22E. While we largely maintain our topline estimates, we expect margin to come under pressure with subdued volumes and increasing competition. While we have not considered the increased LLF demand into our forecasts, the high uncertainty regarding the outcome would be an overhang on the stock. Considering the uncertainty regarding LLF, we downgrade our rating from BUY to ADD with a 12m TP of Rs.419 (22x FY22E PE multiple)," the brokerage said.
Behind Bank of Baroda’s net loss is prudence, but outlook looks cloudy
In tandem with most of its peers, Bank of Baroda chose to take a hit on its profits for the sake of safety.
The public sector lender reported a net loss for the June quarter as it provided against various bad loans and future risks, including some of it for regulatory compliance.
Indeed, the bank’s provisions surged 71% year-on-year and not all of it was due to covid-related risks. (Full report)
IPCA’s Q1 show decent, but stock prices are riding on a wave of over-optimism
The growth in the domestic pharma market is rubbing off on IPCA Laboratories Ltd. Its stock is up about 86% since January this year as demand for hydroxychloroquine, considered among covid-19 drugs, jumped this year. Comparatively, the Nifty Pharma index is up 48%. (Full report)
Axis Bank raises ₹10,000 crore through share sale
Private sector lender Axis Bank on Tuesday said it raised ₹10,000 crore through a qualified institutional placement (QIP) of shares.
The bank said in a statement that despite a challenging macro-economic environment, the placement has witnessed strong reception from the global and domestic investor community, including several large foreign portfolio investors, domestic mutual funds and insurance companies. However, it did not disclose the names of these investors.
Majesco Q1 revenue up 10.6% y-o-y
Majesco, a global provider of cloud insurance platform software, reported 10.6% jump in revenue at $41.2 million in Q1FY21, compared to $37.3 million for the same period last fiscal year. Gross profit stood at $19.4 million (47.0% of revenue), compared to $19.9 million (53.3% of revenue) for the same period last fiscal year.
Dr Reddy's Laboratories launches drug to treat ear infections in US
Dr Reddy's Laboratories has launched a generic version of Ciprodex, used to treat ear infections, in the US market. The newly launched product is a therapeutic equivalent generic version of Ciprodex (ciprofloxacin 0.3% and dexamethasone 0.1%) Otic Suspension, approved by the US Food and Drug Administration (USFDA).
JSW Steel production up 9% in July
The crude steel production for the month of July 2020 stood at 12.46 lakh tonnes up 9% from June 2020. The average capacity utilisation during the month of July was at 83% as against 76% in June 20.
Rupee surges 8 paise to 74.82 against US dollar in early trade
The rupee appreciated 8 paise to 74.82 against the US dollar in early trade on Tuesday tracking weakness in the greenback and gains in the domestic equity market.
The local unit opened at 74.83 against the US dollar, then touched 74.82, up 8 paise over its previous close of 74.90 against the American currency.
JSW Cement pushes IPO plans to 2022 due to muted demand
JSW group’s initial public offer for its cement business has been postponed by two years from the earlier date of December 2020, Parth Jindal, MD, JSW Cement, told Mint. The company will use the intervening period to ramp up capacity from the current 14 million tonnes (mt) per annum to 20 mt a year by 2022. (Full report)
ABB unveils eMart
ABB India has launched eMart, an online marketplace portal, which will offer more than 6,000 products from its Electrification Business for home and industrial buyers.
Angel Broking on Bank of Baroda
“For Q1FY21, Bank of Baroda reported net profit comes in below street estimate; the bank reports a loss of Rs.846cr vs a profit in previous years the same quarter. Bank advance grew at 8.6% YOY and NII grew at 5%, which is in line with street expectation. On account of higher provision cost which increased 71% YoY, impacted profitability. On the Lability front, the Domestic CASA ratio increased to 39.49%, higher by 294bps YoY. Retail term deposits increased by 10.4% YoY. The cost of deposits in Q1FY21 is lower by 53 bps YoY at 4.95%. 21.42% of term loan availed moratorium. Bank of Baroda is trading at low valuation compared to historical, however, here on investors will keenly watch for Morat number movement and RoE improvement trajectory," said Jaikishan Parmar, Senior Equity Research Analyst, Angel Broking
Hindustan Zinc, Jindal Steel hit 52-week highs
Power Grid Corporation down 0.23%
State-owned Power Grid Corporation of India Ltd posted an over 18% fall in its consolidated net profit to ₹2,048.42 crore for the June 2020 quarter. The company's consolidated net profit had stood at ₹2,502.80 crore in the corresponding quarter of the previous financial year 2019-20.
Angel Broking on ICICI Bank
“ICICI Bank Ltd on Monday launched a qualified institutional placement (QIP) offering to raise as much as Rs. 15,000cr at an indicative price of Rs.355-358/share.We believe this fundraising in this environment would be positive for ICICI bank. At base price Tier I to increase approx. 200bps, net worth to gain 12.6%, and Book value to increase by 5.8%. In uncertain times adequate capital adequacy (CAR) will provide comfort to investors. Currently, ICICI bank trades 1.1x FY22E ABV which is a lower valuation compared to the historical average. Lower valuation, increase in CAR and healthy performance by Insurance and AMC Business would be positive for ICICI Bank. Key to monitorable here on will be Moratorium percentage of the loan book at the end of Morat 2 in AUG 2020," said Jaikishan Parmar, Senior Equity Research Analyst, Angel Broking.
Shares of TVS Motor Company trade flat in early deals
Goldman Sachs Singapore PTE on Monday sold 0.75% stake or 3.55 million shares at an average price of ₹417.05 in TVS Motor Company for ₹148 crore, through open market transactions.
Bank of Baroda declines 1.75%
State-owned Bank of Baroda reported a net loss of ₹864 crore on a standalone basis in the quarter ended June due to increased provisioning for standard accounts. The bank had reported a standalone profit of ₹710 crore in the year-ago period.
Titan company down 4%
Tata group firm Titan Company Ltd reported a consolidated net loss of ₹297 crore for the June quarter, impacted by lower income due to the covid-19 pandemic. The company had reported a net profit of ₹364 crore in the corresponding period of the preceding fiscal.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments says
"After crossing the hurdle of 11250 we have moved swiftly to over 11350 upon opening itself. We should be able to achieve 11400 and then 11500 in this intermediate upward rally. The Nifty support continues to be at 11100."
Most sectoral indices on NSE in the green
Kotak Mahindra Bank up 0.3%
The private sector lender said that it has complied with Reserve Bank of India’s guidelines on promoter shareholding, within the prescribed timeline. For the quarter ended 30 June, promoter Uday Kotak’s stake in the bank stood at 25.82% and the total promoter shareholding was at 26.07%, showed data from BSE.
InterGlobe Aviation up 0.6%
The board of directors of InterGlobe Aviation Limited, which operates the country's largest domestic airline IndiGo, have approved raising funds to the tune of ₹4,000 crore through qualified institutions placement.
Shree Cement declines 4%
The company’s net profit in June quarter rose to ₹370.8 crore from ₹363 crore in same quarter of the preceding fiscal. Revenue dropped to ₹2,325.8 crore during the period under review from ₹3,036.41 crore year-on-year.
ICICI Bank up 2.75%
The second largest private sector lender ICICI Bank has set the floor price at ₹351.36 per share for its proposed share sale to raise up to ₹15,000 crore. The floor price for the qualified institutional placement (QIP) of shares is at a discount of over 3% to Monday's close of ₹363.60 on the BSE.
Indian benchmark share indices opened higher on Tuesday tracking firm cues from global peers. Sensex opened at 38,371.34, up 189.26 points or 0.50%, while Nifty opened 52.10 points or 0.46% higher at 11,322.25.
ICICI Bank, rising nearly 2%, was the top Sensex gainer, followed by Axis Bank, ITC, TechM, Power Grid and Tata Steel. Titan, Bharti Airtel and Infosys were among the laggards. Of 30 Sensex shares, 27 opened in the green.
Indian stocks traded higher in the pre-opening session on Tuesday. At 9:03 am, Sensex advanced 173 points or 0.5% to 38,355, while Nifty added 52 points or 0.5% at 11,322.
Stocks to Watch
ICICI Bank, InterGlobe Aviation, Kotak Bank and Titan Company are among the top stocks that may be in news today.
Market at close on Monday
The BSE Sensex notched up gains for the third straight session on Monday, bouyed by engineering, finance and pharma stocks amid positive cues from global markets.
After rallying 390.12 points during the day, the 30-share BSE benchmark pared some gains to end 141.51 points or 0.37% higher at 38,182.08.
Similarly, the NSE Nifty climbed 56.10 points or 0.50% to close at 11,270.15.
L&T was the top gainer in the Sensex pack, rallying 4.81%, followed by M&M, Sun Pharma, Tech Mahindra, NTPC, SBI, ICICI Bank and Titan.
Asian stocks rise
Asian stocks rose the most in a week on Tuesday after a drop in coronavirus hospitalizations in some US states, even as global cases topped 20 million. Crude oil extended gains and the dollar was near a one-week high.
Australia’s S&P/ASX 200 Index index rose 1.1%.
South Korea’s Kospi index climbed 1.3%.
China's Shanghai SE Composite Index gained 0.8%.
Hong Kong’s Hang Seng Index rose 2.4%.
Singapore's SGX Nifty advanced 0.65%. (Bloomberg)
Wall Street mixed with stimulus in focus
The Dow jumped 1%, the S&P 500 inched up and the Nasdaq closed lower on Monday as investors extended a rotation into value stocks from heavyweight tech-related names while awaiting news on progress in a US fiscal support bill.
The Nasdaq, which has been hitting record highs, was dragged lower by Microsoft Corp, Amazon.com Inc and Facebook Inc.
The Dow Jones Industrial Average rose 357.96 points, or 1.3%, to 27,791.44, the S&P 500 gained 9.19 points, or 0.27%, to 3,360.47 and the Nasdaq Composite dropped 42.63 points, or 0.39%, to 10,968.36. (Reuters)