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Indian benchmark equity indices closed over 0.5% higher on Monday, led by healthy buying in banks, metals and pharma stocks. Sensex closed 180 points or 0.52% higher at 34,911 while Nifty advanced 67 points or 0.65% to settle at 10,311.
Pharma stocks rallied after government gave nod to manufacture coronavirus drugs.
BSE Healthcare, BSE Bankex and BSE Metal, surging 2-3% , were top sectoral gainers.
Bajaj Auto, closing over 7% higher was the top Sensex gainer, followed by Bajaj Finance, Bajaj Finserv and Power Grid Corp. ONGC, HDFC, TCS, HDFC Bank RIL were among the laggards. Of 30 Sensex shares, 9 closed in the red.
"We initiate coverage on Greenlam (GRLM) with BUY rating and a target price of ₹1,059/share – DCF derived value with implied P/E multiple of 24.5x on FY22E. We remain extremely sanguine about the business prospects of GRLM on the back of 1. strong track record (revenue/EBITDA CAGR of ~15%/17.5% over FY10-FY19), 2. long growth runway (expect domestic laminate industry to grow at 8-10% over next decade), 3. moat in the form of scale benefits (with 18% domestic market share, competing neck-to neck with Merino for the top spot in India and third largest globally) and 4. exceptional operating metrics of core business of laminates (EBITDA margins of ~16%/asset turn of ~4x/ROCE of ~28%)," the brokerage said.
Motilal Oswal has maintained 'buy' rating on Tata Consumer Products with a target price of ₹431. "TCP deals in salt/tea/coffee, for which demand has not been materially impacted due to COVID-19. Though, the company faced certain issues pertaining to the supply chain, it is returning to normal day by day (for India). Nevertheless, Tata group’s long-term vision of creating strong presence in the FMCG space remains intact. Going forward, the strategy formulation and its execution is expected to be monitored under new CEO & MD. We are positive on TCP given its strong balance sheet, robust FCF generation and excellent management quality. Maintain Buy with a TP of INR431/share," the brokerage said in a note.
Rupee surges 17 paise to close at 76.03 against US dollar.
Adani Power board on Monday approved the proposal to delist the company’s equity shares from stock exchanges.
The company has worked out the floor price of an equity share of ₹33.82 to buy 96.53 crore scrips with the public for about ₹3,264 crore.
In a regulatory filing, the company said it will seek shareholders nod for delisting on BSE and NSE through a postal ballot.
Private sector lender Yes Bank Ltd said that the Reserve Bank of India (RBI) has turned down its request for permission to pay interest on its Tier II bonds due on 29 June.
“We refer to our earlier communication dated 27 May, 2020 wherein we had inter alia informed that as the capital to risk assets ratio (CRAR) of the bank is below regulatory requirement, and the bank has filed an application with Reserve Bank of India (RBI) seeking approval for payment of interest due as on 29 June, 2020, for the captioned Upper Tier II bonds," the Yes Bank said in a regulatory filing.
This is indeed striking considering the anticipated pressure on demand due to the covid-19 pandemic. Plus, it’s not as if Avenue derives all its revenues from sale of essential products. In FY20, food, non-food (fast-moving consumer goods or FMCG), and general merchandise & apparel contributed 52.4%, 20.3% and 27.3%, respectively. (Full report)
Yes Securities has maintained 'buy' rating on Capacite Infraprojects Ltd with a target price of ₹147 and 30% upside. "With significant impact of COVID on topline and margins, we cut our estimates for FY21 and FY22. We believe, normalcy would only return from Oct’20 onwards. We expect margins to improve in FY22 as execution picks up. We believe, the comfortable balance sheet position would help execute the strong order book. We maintain our BUY rating on the stock for revised target of Rs.147 (9x FY22 EPS)," the brokerage said.
RBI has barred Yes Bank from paying interest on Tier II bonds as it has not been able to meet minimum capital requirements.
At 12:50 pm, shares of Vodafone Idea were up 10% at ₹9.74 apiece. The Supreme Court has deferred the hearing of the AGR matter to the third week of July.
Indian stocks traded higher on Monday lead by gains in pharma companies and banks. At 12:25 pm, the benchmark Sensex rose 211.20 points or 0.61% to 34,942.93 while Nifty gained 74.45 points or 0.73% at 10,318.85.
Nifty PSU Bank, Nifty Private Bank and Nifty Pharma, surging over 2%, outperformed the benchmark equity indices and were top sectoral gainers.
Shares of Glenmark Pharmaceuticals surged 39.99% intraday to ₹572.70 apiece on Monday, hitting a 52-week high.
Glenmark Pharmaceuticals, on Saturday, said it has launched antiviral drug favipiravir, under the brand name FabiFlu, for the treatment of patients with mild to moderate covid-19 at a price of about ₹103 per tablet. The drug will be available as a 200 mg tablet at a maximum retail price of ₹3,500 for a strip of 34 tablets, Glenmark Pharmaceuticals said. FabiFlu is the first oral favipiravir approved medication in India for the treatment of covid-19, it added.
The company reported a net loss of ₹5.85 crore in Q4FY20 against a profit of ₹8.7 crore in the same quarter of previous Fiscal. The company’s revenue stood at ₹132.87 crore versus ₹141.44 crore in Q4FY19.
Fitch Ratings has revised the Outlook to Negative from Stable on the Long-Term Issuer Default Ratings (IDR) of the following India-based banks, while affirming their IDRs, Support Ratings (SR) and Support Rating Floors (SRF):
Export-Import Bank of India (EXIM)
State Bank of India (SBI)
Bank of Baroda (BOB)
Bank of Baroda (New Zealand) Limited (BOBNZ)
Bank of India (BOI)
Canara Bank (Canara)
Punjab National Bank (PNB)
ICICI Bank Limited (ICICI)
Axis Bank Limited (Axis)
At the same time Fitch has affirmed IDBI Bank Limited's (IDBI) IDR while maintaining the Outlook at Negative.
Yes Securities has put 'buy' rating on Thermax Ltd with a target price of ₹865 and 15% upside. "In the challenging period, Thermax has delivered healthy operating cash flow of Rs3.3bn in FY20 (OCF/EBITDA ratio at 80%) driven by exceptional focus on working capital & balance sheet. Q4FY20 results were weak owing to COVID-19 related disruptions & few one-offs like digitalization fees & warranty expenses. We derive comfort from TMX’s proven ability to emerge stronger after every downturn due to strong cash flow control & unlevered balance sheet. Retain ‘BUY’ with TP of Rs865," the brokerage said.
Cadila Healthcare’s Q4 numbers were lacklustre due to disruption caused by covid-19. Business both in the US and domestic market slowed down during the last quarter. This could put the stock’s performance at risk. Shares were down 1.2% at ₹357.85 on Monday. (Full report)
Oil prices slid on Monday as concern grew that a record rise in coronavirus infections worldwide could stall a recovery in fuel demand, outweighing tighter supplies from major producers.
Brent crude fell 11 cents, or 0.3%, to $42.03 a barrel by 0505 GMT, while U.S. crude was at $39.69 a barrel, down 14 cents, or 0.4%.
Both contracts rose about 9% last week and Brent crude futures have flipped into backwardation, so that oil for immediate delivery costs more than that to be provided later, usually an indication of tightening supply. (Reuters)
Reliance Industries on Monday became the first Indian firm to hit a market valuation of USD 150 billion helped by a continuous rally in its share price.
In morning trade, the company's market valuation jumped ₹28,248.97 crore to ₹11,43,667 crore (USD 150 billion) on the BSE.
The heavyweight stock surged 2.53 per cent to a record high of ₹1,804.10 on the BSE.
On the NSE, it rose by 2.54% to an all-time high of ₹1,804.20.
Reliance Industries on Friday became the first Indian company to cross the ₹11 trillion market valuation mark.
Hinduja flagship firm Ashok Leyland on Friday said its board has approved raising of ₹200 crore through issuance of securities on a private placement basis.
Yes Securities has put 'buy' rating on Bajaj Electricals with a target price of ₹493. "Debt reduction in FY21 would be led by strengthening of CP business and recovery of EPC receivables. Interest costs to decline to Rs1bn in FY21 due to lower debt and reduction in interest costs. We have cut our FY21/FY22 estimates by 55.7%/19.4% factoring slower recovery in demand and accounting for revenue loss during lockdown. Valuations attractive at 21.7x FY22e P/E. Sharp earnings recovery coupled with improvement in return ratios, balance sheet and rising share of CP business would lead to valuation re‐rating. We maintain our Buy rating on the stock for a revised target price of Rs492, valuing the company at 26x FY22E P/E," the brokerage said.
The Pollution Control Board, Assam (PCBA) has served a closure notice to state owned Oil India Ltd (OIL) to shut down all production along with drilling operations at its Baghjan oilfield in Tinsukia district of Assam.
ICICI Bank has divested 21.5 million equity shares of face value of ₹10 each of ICICI Prudential Life Insurance Company Limited, representing 1.50% of its equity share capital at March 31, 2020, on the stock exchange for an approximate total consideration of Rs. 8.40 billion, it said in a regulatory filing. Following this, the Bank's shareholding in ICICI Prudential Life Insurance Company Limited stands at approximately 51.4%.
Rupee rises 5 paise to 76.15 against US dollar in early trade.
The mortgage financier reported a 40% decline in its net profit to ₹421.43 crore for the March 2020 quarter. LIC Housing Finance had reported a profit after tax of ₹693.58 crore in the year-ago period.
Piramal Pharma Solutions, a subsidiary of Piramal Enterprises, has entered into a pact with G&W Laboratories Inc to acquire its solid oral dosage drug product manufacturing facility at Sellersville in US for $17.5 million (over ₹130 crore).
Power Grid Corp. of India Ltd reported better-than-expected performance for the March quarter (Q4 FY20). Consolidated revenue and profit grew 8-9%. The growth was driven by its mainstay transmission business, with revenues growing 8.2% year-on-year. The stock rose about 2% in early deals on Monday. (Full report)
Mortgage lender HDFC Ltd on Friday said its board has approved to raise up to ₹14,000 crore in tranches through various means. "The committee of directors of the Corporation (HDFC) at its meeting held today (Friday) i.e., June 19, 2020, approved seeking approval of members of the Corporation through postal ballot for raising of funds not exceeding ₹14,000 crore," it said in a regulatory filing.
Billionaire Mukesh Ambani on Friday announced that his oil-to-telecom conglomerate Reliance Industries is now net-debt free months ahead of its March 2021 target after raising a record ₹1.69 lakh crore from stake sales and rights issue in less than two months time.
The private sector lender on Saturday said its board has approved proposal to raise up to ₹50,000 crore in the next twelve months by issuing various debt securities.
The company has launched an antiviral drug Favipiravir (brand name FabiFlu®) for the treatment of mild to moderate covid-19 patients. Favipiravir has shown clinical evidence showing encouraging results in patients with mild to moderate covid-19.
Cipla Ltd announced the launch of its generic version of remdesivir, which has been authorised for emergency use in treatment of covid-19 patients by the US FDA, under its brand name Cipremi.
Indian benchmark equity indices opened about 0.5% higher on Monday led by gains in banks and financials. Sensex opened 160 points higher 34,892.03 while Nifty added 74 points to open at 10,318.75.
Bajaj Finserv was the top Sensex gainer, followed by Sun Pharma, Power Grid and Bajaj Finance. Ultratech Cement, TCS, M&M and Tata Steel were among the laggards.
Indian stocks traded higher in the pre-opening session on Monday. At 9:03 am, Sensex jumped 281 points or 0.81% to 35,013 while Nifty advanced 114 points or 1% to 10,358.
HDFC Ltd, HDFC Bank, Cipla, Glenmark, IndiGo, SpiceJet, Piramal Enterprises are among the top stocks that could be in focus on Monday.
Indian stocks closed over 1% higher on Friday, riding on gains in RIL shares after the oil-to-telecom conglomerate said it had become net-debt free.
Sensex closed 523.68 points or 1.53% higher at 34,731.73, while Nifty settled 152.75 points or 1.5% higher at 10,244.40.
Shares of Reliance Industries Ltd closed at a record high of ₹1764 apiece on the BSE, led by which, company’s market-cap crossed ₹11 trillion mark for the first time.
Asian stocks kicked off the week with modest losses as investors mulled the impact of coronavirus outbreaks in countries from the US to Australia, though US futures recouped much of an early decline.
Japan’s Topix index lost 0.5%.
South Korea’s Kospi dropped 0.8%.
Australia’s S&P/ASX 200 Index declined 0.2%.
Hong Kong's Hang Seng declined 0.30%
Singapore's SGX Nifty fell 0.5%, indicating a weak start for Indian stock markets.
The S&P 500 ended lower on Friday after an up-and-down session as investors weighed spiking cases of covid-19 and Apple Inc's announcement of fresh store closures against anticipated stimulus and continued economic recovery.
The S&P 500 ultimately settled in the red, along with the blue-chip Dow, while the tech-heavy Nasdaq closed nominally higher.
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