Sensex ends 143 points lower, Nifty below 10,800; RIL, HUL top gainers11 min read . Updated: 10 Jul 2020, 03:39 PM IST Devansh Sharma
- Sensex setteled at 36,594.33, down 0.39% or 143.36 points, while Nifty closed 40.85 points or 0.38% lower at 10,772.60
- RIL, closing 3% higher, was the top Sensex gainer followed by HUL, Sun Pharma, Bharti Airtel and TCS
Welcome to the Mint live blog. Track this space for latest stock market updates.
Indian stocks closed lower on Friday amid selling pressure as a spike in the domestic coronavirus cases threatened to derail the economic recovery.
Sensex settled at 36,594.33, down 0.39% or 143.36 points, while Nifty closed 40.85 points or 0.38% lower at 10,772.60.
RIL, closing 3% higher, was the top Sensex gainer followed by HUL, Sun Pharma, Bharti Airtel and TCS. Axis Bank, IndusInd Bank, ICIC Bank, HDFC and Titan were among the laggards on the other hand. Of 30 Sensex shares, 22 were in the red.
RIL inches closer to ₹12 trillion m-cap
Shares of RIL rose as much as 3% on Friday, hitting a fresh 52-week high of ₹1882.80 apiece on the BSE, led by which company's market capitalisation reached ₹11.9 trillion.
Global energy supermajor BP plc and Reliance Industries Ltd on Thursday announced the start of their fuel retailing joint venture under the brand 'Jio-bp'. BP had last year bought 49% stake in the 1,400-odd petrol pumps and 31 aviation turbine fuel (ATF) stations owned by Reliance Industries Ltd (RIL) for $1 billion.
HDFC twins, ICICI Bank drag Sensex
Britannia, RIL hit 52-week highs
Bank of Maharashtra approves fund raising plan
The board of directors of Bank of Maharashtra has approved raising of capital up to ₹2000 crore via preferential allotment to Government of India and others via QIP, FPO, rights issue or AT1 bonds. The board has also approved raising ₹1,000 crore via issuing Basel III compliant Tier I/II bonds at an appropriate time, subject to the necessary approvals, according to a regulatory filing.
Indian rupee skids 21 paise to close at 75.20 against US dollar.
Top drags on Nifty PSU Bank
Astra Microwave up 6%
Shares of Astra Microwave Products zoomed over 5% after the Jun-end shareholding pattern of the company revealed that renowned investor Radhakishan Damani owned 1.03% stake in the company.
The June shareholding pattern of Astra Microwave Products showed that promoters held 10.05% stake in the company while the rest by the public. Mutual funds, including Sundaram Mutual Fund A/C Sundaram Small Cap Fund and ICICI Prudential Infrastructure Fund held 8.14% stake in the company.
Banks, Financials top drags
Kotak Mahindra Bank to be mindful of highly-leveraged businesses: Uday Kotak
Private sector lender Kotak Mahindra Bank will tweak the way it lends to businesses and will be "mindful" of companies with high leverage, said Uday Kotak, the bank’s chief executive and managing director.
In preparation of a post-covid world, the bank will look at lending through three filters, Kotak said in the bank’s annual report for FY20. (Full report)
Indian stocks came under selling pressure on Friday as a spike in the domestic coronavirus cases threatened to derail the economic recovery.
At 12:50 pm, Sensex was at 36,515.13, down 0.61% or 222.56 points, while Nifty declined 71.85 points or 0.66% to 10,741.60. Sun Pharma, up nearly 3%, was the top Sensex gainer followed by TCS, HUL, Power Grid and RIL. IndusInd Bank, Axis Bank, HDFC, Titan and Tata Steel were among the laggards on the other hand.
Of 30 Sensex shares, 22 were in the red.
Firstsource Solutions jumps 10%
Shares of Firstsource Solutions surged as much as 10.15% after ace investor Rakesh Jhunjhunwala increased stake in the company to 2.88% during the June quarter. At 12:45 pm, Firstsource Solutions traded at ₹43.60 a piece on BSE, up 8% from its previous close.
Tata Power drops 5%, Adani Power slips nearly 2%
The Gujarat government has decided to reverse its 2018 decision to amend the power purchase agreements (PPAs) it signed with three producers - Tata Power, Adani Power and Essar Power - to raise the tariffs in order to offset the rising cost of imported coal.
VIP Industries down 0.4%
The board of directors of the company approved the issue of principal protected, secured, rated, listed, redeemable, non-convertible, market-linked debentures (NCD's) on private placement basis in one or more tranches aggregating up to ₹100 crores.
Yes Bank FPO issue floor price fixed at ₹12 per equity share
Yes Bank's board has approved the following in relation to the FPO Offer:
• Floor Price: ₹ 12 per Equity Share;
• Cap Price: ₹ 13 per Equity Share;
• A discount of ₹ 1.00 per Equity Share for the eligible employees of the Bank bidding in Employee Reservation Portion; and
• A minimum bid lot of 1,000 Equity Shares and in the multiples of 1,000 Equity Shares thereafter.
A meeting of the Capital Raising Committee is scheduled to be held on 14 July for the purposes of allocation of Equity Shares to the successful Anchor Investors pursuant to the Offer and for determination of the Anchor Investor Allocation Price.
PNB drops nearly 7%
Shares of Punjab National Bank on Friday tumbled nearly 7% after the company said it has reported a fraud of ₹3,688.58 crore in the non-performing asset account of Dewan Housing Finance (DHFL) to the RBI.
The stock plunged 6.73 per cent to ₹34.60 on the BSE.
On the NSE, it tanked 6.73 per cent to ₹34.60.
Union Bank reduces MCLR by 20 bps across tenors
State-run Union Bank of India on Friday announced reduction in its marginal cost of funds-based lending rate (MCLR) by 20 basis points across tenors. The new rates are applicable from July 11.
CG Power drops 5%
The Metropolitan Court in Budapest, Hungary has declared CG Electric Systems Hungary Zrt, a subsidiary of CG Power and Industrial Solutions, insolvent and appointed a liquidator to commence liquidation proceedings.
Muthoot Capital services up 1.6%
The company has completed a securitization transaction of ₹ 100.89 crores on 6 July 2020, it said in a regulatory filing.
Why copper prices are surging despite worries about economy
Copper prices are surging, and for once it’s not because the economy is booming.
The metal -- known colloquially as Dr. Copper because its performance is often used to gauge the health of the overall economy -- has surged by a staggering 45% since mid-March. That’s despite the International Monetary Fund downgrading its global forecast and a resurgence of Covid-19 infections forcing governments around the world to re-impose business-crippling lockdowns. (Full report)
Pandemic a near-term stress for Gail but stock’s lower valuations soothe
Life Insurance Corp. of India increased its stake in Gail (India) Ltd by an additional 2%, taking the insurer's stake in the company to 7%. Gail’s investors took this news positively with the shares up about 3% on Thursday on NSE. While the stock gave up some of those gains in early deals on Friday, in general, its lower valuations and Gail’s vast presence in the gas value chain puts it in a sweet spot. (Full report)
India's fuel demand recovers further in June by over 11%
India's fuel demand in June extended its recovery from a 13-year low hit in April, lifted by a pickup in activity as the economy gradually reopens from lockdown restrictions imposed to combat the coronavirus pandemic, government data showed on Thursday.
Consumption of refined fuels, a proxy for oil demand, rose to 16.29 million tonnes in June, 11% above the prior month, data from the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum & Natural Gas showed.
However, demand was still down 7.9% compared with the same month a year ago. (Full report)
Jyoti Roy, DVP Equity Strategist, Angel Broking says
“TCS reported a 7.0% qoq degrowth in revenues to USD 5.06bn as compared to market expectations of 5-6% degrowth. In rupee terms revenue contracted by 4.1% qoq to Rs.38,322 crore while gross profits degrew by 9.9% qoq to Rs.15,108 crore. Gross margins contracted by 258bps qoq to 39.4% though cost control in the form of reduced SG&A expenses limited contraction in EBIT margins to 149bps qoq to 23.6% while EBIT registered a degrowth of 9.7% qoq to Rs.9,048 crore. Net profit for the quarter contracted by 12.7% qoq to Rs.7,008 crore. While the Q1FY21 numbers were below street expectations on all counts, new deal wins remained strong at USD 6.9bn for the quarter which was a key positive. Markets will also look forward to management commentary and their outlook for the rest of the year."
Angel Broking maintains 'accumulate' on Reliance Industries
Angel Broking has maintained 'accumulate' rating on Reliance Industries with a target price of ₹1,937. "Reliance Industries Ltd. (RIL) is India’s largest company with a dominant presence in Refining, Petrochemicals, Telecom and Retail businesses. Telecom business to witness robust growth over next few years due to tariff hikes and shift of subscribers from Vodafone Idea to other telecom players," the brokerage said.
JSW Steel down 2.7%
Moody's Investors Service has confirmed JSW Steel Limited's rating at Ba2 with outlook revised to negative. "The rating confirmation recognizes that while JSW's credit profile will deteriorate reflecting the challenges brought by the pandemic, we believe that the company's financial metrics will likely recover to levels commensurate with the current ratings by the fiscal year ending March 2023 (fiscal 2023)," the ratings agency said.
The Indian rupee dropped 17 paise to trade at 75.16 against the American currency in opening deals on Friday on emergence of demand for US dollar from importers and banks.
The local unit had closed at 74.99 a dollar on Thursday.
Mint Covid Tracker: At current pace, India’s coronavirus tally could hit 1 million in seven days
India’s total coronavirus case tally is set to hit the 1 million mark by next Friday if it continues to rise at the same pace as since mid-June, a Mint analysis based on the latest health ministry data showed. During this period, cases have been growing at an average daily growth rate of 3.5%, taking the total number close to 800,000 now.
Overall, India has 276,685 active cases—or patients still under treatment—as of Friday morning, while 21,604 deaths have been attributed to the infection, latest health ministry data showed. Active cases rose 20% in the last seven days, in line with the week-ago period (26 June to 3 July). The seven-day spike in deaths is 19%, compared to 20% in the preceding week.
BSE Metal drops 1%
Broader indices on NSE outperform benchmark Nifty50
Tata Motors up nearly 1%
Jaguar Land Rover, a wholly owned subsidiary of Tata Motors, sold 74,067 units in the April-June quarter, down 42.4% y-o-y. The retail sales in the month of June, at 35,334 units, accounted for nearly half of its sales in Q1FY21. Strict lockdowns due to covid-19 had resulted in temporary shutdowns of most retailers and the company’s manufacturing plants in April and much of May.
BSE MidCap up 0.4%
Top gainers on Nifty Pharma
PNB Housing Finance drops nearly 2%
PNB Housing Finance on Thursday said it is actively looking to further sell its corporate assets to streamline balance sheet and has reworked its business plan for the current fiscal as the coronavirus pandemic has changed the dynamics. PNB Housing had sold corporate finance portfolio worth ₹2,307 crore during FY20 which helped in improving its CRAR (capital to risk weighted assets ratio) by end of March 2020.
PNB drops 3.6%
India’s second-largest public sector lender Punjab National Bank (PNB) on Thursday declared its ₹3,688.58 crore exposure to mortgage financier Dewan Housing Finance Ltd as fraud.
RIL up 1.2%
UK’s BP Plc and Reliance Industries Ltd (RIL) have announced the start of their new Indian fuels and mobility joint venture, Reliance BP Mobility Limited (RBML). Following initial agreements in 2019, BP and RIL teams have worked over the past few months to complete the transaction. BP has paid RIL $1 billion for a 49% stake in the joint venture, with RIL holding 51%.
TCS flat post Q1 result
The country's largest software services firm TCS reported a 13.8% decline in June quarter consolidated net profit at ₹7,008 crore on revenues being impacted by the coronavirus crisis. It expects revenues to touch pre-covid-19 levels only by the January-March quarter of this fiscal. TCS had posted a consolidated net profit of ₹8,131 crore in the year-ago period.
Indian stocks edged lower on Friday tracking weak cues from global peers amid concerns that new lockdowns could derail the economic recovery.
Sensex opened at 36,555.13, down 182 points, while Nifty opened 49 points lower at 10,764.10.
Sun Pharma, Bharti Airtel, Infosys, TCS and RIL were among the gainers on the Sensex at open. IndusInd Bank, Axis Bank, tata Steel, ICICI Bank and TechM were among the laggards on the other hand. Of 30 Sensex shares, 25 were in the red.
Indian stocks traded lower in the pre-opening session on Friday. At 9:03 am, Sensex dropped 255 points or 0.7% to 36,483, while Nifty declined 55 points or 0.5% to 10,758.
Stocks to Watch
TCS, Reliance Industries, PNB, Tata Motors, JSW Steel and CG Power are among the top stocks that may be in news on Friday.
Market at close on Thursday
Indian stocks closed about 1% higher on Thursday led by gains in financials and metal stocks, as investors’ focus shifted on the new earnings season.
Sensex ended at 36,737.69, up 1.12% or 408.62 points, while Nifty settled 107.70 points or 1% higher at 10,813.45.
Asian shares in the red
Asian shares opened lower on Friday as record-breaking new coronavirus cases and deaths in several US states stoked concerns that new lockdowns could derail the economic recovery, and investors looked forward to earnings season.
Australia ASX All Ordinaries fell 0.07%.
China's Shanghai SE Composite Index slipped 1.71%.
Hong Kong's Hang Seng declined -1.22%.
Singapore's SGX Nifty dropped 0.7%, indicating a weak opening for Indian benchmark indices.
US stocks end lower
The S&P 500 and Dow dropped on Thursday as investors worried about another round of business shutdowns to contain a surge in coronavirus cases and began to shift their focus to earnings, while the Nasdaq hit another record closing high.
The Dow Jones Industrial Average fell 361.19 points, or 1.39%, to 25,706.09, the S&P 500 lost 17.89 points, or 0.56%, to 3,152.05 and the Nasdaq Composite added 55.25 points, or 0.53%, to 10,547.75. (Reuters)