PremiumAsian and European markets welcomed the easing of geopolitical concerns and boosted investor risk appetite. However, the Indian market took a detour and remained highly volatile on Friday. Analysts said the geopolitical risks remained with China conducting military exercises near Taiwan.
Indian benchmark indices remained highly volatile on Thursday and ended the day in the flat territory with marginal losses. Sensex was down 51 points at 58,298 and Nifty shed 6 points to close at 17,382. The day started on a positive note but the indices were down 0.5% at noon.
Among sectoral indices, Pharma, IT and Metal surged the most, while Banks and Realty shed more than a per cent. NTPC, SBI and Reliance slipped in today's session, whereas Sun Pharma, Infosys and Nestle India gained more than 2%.
Asian markets ended in green as jitters eased over US-China tension. Japanese stocks gained on Thursday despite an afternoon plunge in Toyota Motor Corp as the country's biggest automaker posted a large drop in quarterly earnings. Japan's Nikkei share average closed up 0.69%.
Meanwhile, Chinese indices gained on the back of a raft of newly launched infrastructure projects aimed at stabilising the economy. Hang Seng jumped 2% on Thursday and Shanghai Composite Index was up 0.8%.
European shares mostly headed higher in early trading. However, analysts said geopolitical risks remained after Pelosi's visit to Taiwan in defiance of Beijing, with China conducting military exercises near the self-ruled island, which might have an effect on European and American markets on Thursday.
Government-owned engineering and manufacturing firm, BHEL registered a net loss of ₹191.85 crore for the quarter ending June 30, 2022 (Q1FY23). The loss narrowed from ₹445.440 crore in June last year quarter. Meanwhile, revenue from operations stood at ₹4,672 crore in Q1FY23 rising by a whopping 61.03% from ₹2,901.32 crore in the same quarter last year.
However, the company reported a loss compared to a profit of ₹908.87 crore in Q4FY22. Also, revenue dropped by 42.05% against revenue of ₹8,061.68 crore in the March 2022 quarter.
Two years after India's central bank had to step in to take control of Yes Bank to calm panicky depositors and stem systemic risk, the lender is aiming to expand its loan book and acquire smaller rivals to revive its business, its chief executive said.
The expansion plan of the mid-sized lender comes after it raised $1.1 billion last week by selling up to a 10% stake to Carlyle Group and Advent International.
The fundraising marked a rare vote of confidence in Yes Bank, which had to be taken over by the central bank in March 2020 after months of deterioration in its financials and allegations of mismanagement. (Full Report)
Gold in the national capital on Thursday gained ₹487 to ₹52,566 per 10 grams amid a rise in international precious metal prices along with rupee depreciation, according to HDFC Securities.
The yellow metal had closed at ₹52,079 per 10 grams in the previous trade.
Silver also rose by ₹426 to ₹58,806 per kg from ₹58,380 per kg in the previous trade.
The recent brisk rebound in equity markets won’t last as the macroeconomic data continue to deteriorate and earnings forecasts are being slashed, strategists at Goldman Sachs Group Inc. and Sanford C. Bernstein warn.
“Without clear signs of a positive shift in macro momentum, temporary re-risking could actually increase risks of another leg lower in the market rather than signal the end of the bear market," Goldman strategists led by Cecilia Mariotti wrote in a note dated Aug. 4. (Full Report)
Markets regulator Sebi on Thursday said it will auction properties of two companies -- Sumangal Industries and GSHP Realtech Ltd -- on August 25, to recover money that was illegally raised from investors.
A total of eight properties of these two firms will be auctioned for a reserve price totalling ₹9.8 crore, according to a public notice issued by the Securities and Exchange Board of India (Sebi).
Of the eight properties, six relate to Sumangal Industries and the remaining two belong to GSHP Realtech.
State gas utility GAIL (India) Ltd on Thursday reported a 90.5% jump in its June quarter net profit at ₹2,915 crore. The company had posted a net profit of ₹1.530 crore for the year-ago period.
The company's revenue from operations rose 116% year-on-year to ₹37,572 crore in the quarter under review as against ₹17,387 crore for the same quarter last fiscal.
On Thursday, shares of GAIL were trading 1.14% lower at ₹139.20 apiece on the NSE during noon deals.
A little-known Hong Kong company saw its stock market value soar in recent days, but later its price dropped in half. AMTD Digital's market capitalization surged above $450 billion in a 244% jump on Tuesday, but later the stock plunged 40% on Wednesday, reminding investors of the meme stock mania last year that drove record rallies in shares of companies such as GameStop and AMC. (Full Story)
Crude oil futures on Thursday declined 0.43% to ₹7,230 per barrel as participants trimmed their positions on low demand.
On the Multi Commodity Exchange, crude oil for August delivery fell by ₹31 or 0.43% to ₹7,230 per barrel with a business volume of 7,974 lots.
Globally, West Texas Intermediate crude oil was trading 0.28% lower at USD 90.41 per barrel and Brent crude was down by 0.42% at USD 96.37 per barrel in New York.
India's currency in circulation has increased by only around 500 billion rupees in the first four months of this financial year that began in April, which is nearly half the pace of the same period a year ago.
"Economic activity is completely back to pre-pandemic levels, and hence there is hardly any need for panic-driven cash withdrawals, which is leading to a drop in cash in circulation," a trader with a state-run bank said.
A majority of working Indians have started resuming work from office; with 80% of those surveyed by researcher Ipsos saying they are excited about returning to a physical workplace.
The enthusiasm to return to work was greater among men (81%) than women (77%). Those from west India reported greater joy in physically returning to offices, according to findings of the survey released Thursday. (Full Report)
Hinduja Group flagship Ashok Leyland has unveiled the H6 4V engine in AVTR range equipped with premium N Cabin to serve the tractor and tipper segments, the company said on Thursday.
The H series engine makes the new range of trucks suitable for customers who seek higher power delivery and superior fuel efficiency, the city-based heavy commercial vehicle manufacturer said.
"...today further strengthened its AVTR portfolio by introducing 250 HP, 6-cylinder 4 Valve Engine with premium N cabin in haulage, tractor and tipper segments," the company said in a statement.
IndiGo on 4 August announced it would disembark passengers from three doors of the plane which will allow the flyers to quickly get off the aircraft. "The new three-point disembarkation process will be carried out from two forward and one rear exit ramp, making IndiGo the first airline in the world to use this process," the airline said in a statement. (Full Report)
DBS Group Holdings Ltd., Singapore’s largest lender that has been investing in India, said buying a stake in government-owned IDBI Bank Ltd. is not on its radar, even though it remained bullish about the country’s growth prospects.
Chief Executive Officer Piyush Gupta said the lender isn’t looking at a deal for the bank. His comments come after Indian media reported that DBS was considering purchasing a stake and held discussions with finance ministry officials in New Delhi. (Full Report)
Sundaram Finance Holdings (SF Holdings) has reported a consolidated net profit at ₹41.14 crore up by 30.27 per cent for the quarter ending June 30, 2022, the company said on Thursday.
The city-based company had registered a consolidated net profit at ₹31.58 crore in the corresponding quarter previous year.
For the year ending March 31, 2022, the consolidated profit was at ₹160.70 crore.
Consumers in the euro zone are bracing for the economy to shrink and for high inflation to continue eating into their income in the next year, a European Central Bank survey showed on Thursday.
The Consumer Expectations Survey, used by policymakers for input in their deliberations and published on Thursday for the first time, showed households were beginning to lose faith in the ECB's ability to bring inflation back down to its 2% goal.
The poll, carried out in June, showed the median consumer expected prices to grow by 5% over the following year and saw inflation at 2.8% in three years' time.
Shares of debt-laden telecom services provider Vodafone Idea Ltd. (VIL) fell 2.75% in Thursday's opening deals on the National Stock Exchange, reacting to the company's weak June quarter earnings.
Vodafone Idea continues to lose subscribers. Not only that, analysts believe the company's 5G spectrum bid will further raise its debt by around 10%. VIL's total gross debt, excluding lease liabilities and including interest accrued but not due, as of Q1FY23, stood at Rs1.2 trillion. (Full Report)
Japanese stocks gained on Thursday despite an afternoon plunge in Toyota Motor Corp as the country's biggest automaker posted a large drop in quarterly earnings.
Japan's Nikkei share average closed up 0.69% at 27,932.20 after briefly breaking through the 28,000 barrier, which it hasn't finished above since June 9.
IT index has managed to keep itself afloat. Otherwise, all the other indices are in red with Realty and Bank losing the most.
Bullion Outlook
· Comex gold prices declined on Wednesday amid rise in US dollar index and hawkish comments from US Federal Reserve officials
· St. Louis Fed President James Bullard on Wednesday said the Fed would be steadfast in raising interest rates to bring inflation back to the central bank's 2% target
· Moreover, uptick in US 10 years bond yields and optimistic market sentiments in the US, pressurised bullion prices
Energy Outlook
· WTI crude oil prices edged down almost 3.00% on Wednesday as US crude and gasoline stockpiles unexpectedly surged higher
· US commercial crude oil inventories increased to 426.60 million barrels from 422.10 million barrels over the past one week
· At the same time, crude oil prices were pressurized as ministers for the Organization of the Petroleum Exporting Countries (Opec) and allies including Russia, known as Opec+ agreed to the small increase to the group's output target, equal to about 0.1% of global oil demand
Daily Recommendations
1) Crude Oil
2) Bulldex
Shares of Adani Enterprises Ltd have become the latest Adani group company to hit ₹3 lakh crore market cap. After Adani Transmission, Adani Total Gas and Adani Green Energy Ltd, this is the fourth Adani group company that has joined the club of ₹3 lakh crore market cap companies. As per the data available on BSE, Adani Enterprises ended on Wednesday with a market capital of ₹3,09,117 crore whereas it has ascended today at ₹3,10,017.60 crore in early morning deals.
Automobile retail sales in India dropped 8 per cent on an annual basis in July on account of fall in registrations of passenger vehicles, two-wheelers and tractors.
As per data released by the automobile dealers' body FADA on Thursday, the overall automobile retail sales last month stood at 14,36,927 units, as compared with 15,59,106 units in July 2021.
Passenger vehicle retail sales witnessed a dip of 5 per cent at 2,50,972 units last month, as against 2,63,238 units in the year-ago period.
The market cap of Life Insurance Corporation (LIC) has gone down below Bajaj Finance and Housing Development Finance Corporation Limited or HDFC Limited. As per the market cap data available on the BSE website, LIC shares ended on Wednesday with a market valuation of ₹4,29,151.09 crore. In the list of India's most valuable companies in terms of market capital, LIC shares slipped to 10th spot below Bajaj Finance and HDFC Ltd.
After withdrawing the personal data protection bill, the government is hopeful of getting a new legislation passed by the next Budget session of Parliament, Union minister Ashwini Vaishnaw has said.
The government on Wednesday withdrew the Personal Data Protection Bill from the Lok Sabha. The Joint Committee on Personal Data Protection Bill, 2019, headed by BJP member P P Chaudhary, had tabled its report in Lok Sabha on December 16, 2021.
Vaishnaw told PTI that the joint committee gave a very good report in which they have recommended 81 amendments in a Bill of 99 sections.
Investing in stocks for the long-term always teaches you to identify a company which has a long runway for growth. It will all depend on the company's product or service being of some use for the next 10-15 years and not becoming obsolete.
There are many sectors out there that have this potential. These can produce future multibagger stocks.
For example, the technology sector is known for its explosive growth in recent years. Many of the leading tech companies are already worth a lot more than they were when they went public. There’s no reason to believe this trend won’t continue. (Full Report)
InterGlobe Aviation (INDIGO IN): HOLD | CMP: Rs1,977 | TP: Rs1,900
Inox Leisures (INOL IN): BUY | CMP: Rs603 | TP: Rs699
Navneet Education (NELI IN): BUY | CMP: Rs117 | TP: Rs163
Thermax (TMX IN): ACCUMULATE | CMP: Rs2,019 | TP: Rs2,190
Kansai Nerolac Paints (KNPL IN): ACCUMULATE | CMP: Rs499 | TP: Rs558
Bharat Electronics Ltd (BEL) on Monday had informed the exchanges that its board will meet today to consider the proposal of the issuance of bonus equity shares. Bonus shares are fully paid additional shares issued by a company to its existing shareholders. (Full Report)
India's Kotak Mahindra Prime plans to raise 2.50 billion rupees ($31.50 million) through reissuance of 6.55% April 2025 bonds, three merchant bankers said on Thursday.
The company will offer a yield of 7.33% to investors and has invited bids from bankers and investors on Friday, they said.
The bonds are rated AAA by CRISIL, and the issue will close for subscription on Monday.
The rupee depreciated 36 paise to 79.51 against the US dollar in opening trade on Thursday, as disappointing macroeconomic data and US-China tensions weighed on investor sentiment.
At the interbank foreign exchange, the rupee opened at 79.21 against the US dollar, then fell to 79.51, registering a decline of 36 paise over the last close.
Other Recommendations:
Indus Towers: ADD
J. Kumar Infraproject: ADD
Thermax Ltd: NEUTRAL
Shares of Star Health and Allied Insurance Company Limited have been in uptrend for last one month. In this period, Star Health share price has ascended from around ₹498 to ₹719 apiece levels. recording around 45 per cent rise in this time horizon. However, stock market experts are of the opinion that Rakesh Jhunjhunwala stock may continue to rally further and hit ₹780 levels in short term. (Full Report)
India on 4 August reported another rise in Covid-19 cases with 19,893 new infections. This sharp rise comes after India reported 17,135 Covid-19 on 3 August after a drop in infection a day prior with 13,734 cases and 34 deaths.
According to the Health ministry data, the active cases in the country now stands at 136,478 which comprise 0.31 per cent of the total infections.
The Indian rupee will likely open higher versus the dollar as Asian equities and currencies rose on hopes that the global economy will be able to cope with U.S. Federal Reserve rate hikes.
The rupee is expected to open at 79.05-79.10 per U.S. dollar, compared with 79.16 in the previous session. The local unit on Wednesday snapped a four-day winning run, posting its biggest single-day decline in almost three months.
Only one stock has been put under the ban for trade on Thursday, August 4, 2022 under the futures and options (F&O) segment by the National Stock Exchange (NSE). The counter has been put on ban under the F&O segment as it has crossed 95% of the market-wide position limit (MWPL), as per the NSE.
Auto stock Escorts continues to be part of F&O ban list by the stock exchange for today. The NSE updates the list of securities in F&O ban for trade everyday. Escorts Group is among the leading tractor manufacturing company in India pioneers in manufacturing mobile cranes, tractors, railway equipment's, construction, etc.
Cryptocurrencies prices today surged with Bitcoin trading above the $23,000 mark. The world's largest and most popular cryptocurrency Bitcoin was trading nearly 2% higher at $23,179. The global crypto market cap today was above the $1 trillion mark, as it was up more than 2% in the last 24 hours at $1.12 trillion, as per CoinGecko. (Full Report)
Foodgrain supplies in the nation are adequate to satisfy demand, according to Agricultural Minister Narendra Singh Tomar's written response to Parliament on August 2. In reference to Centrally-owned food inventories held by the Food Corporation of India and quantities held by states on the Centre's behalf, the minister said there were sufficient stocks in the "central pool." (Full Report)
STOCK IN FOCUS
Engineers India (CMP Rs.70)
Considering its asset-light business model, strong clientele base, foray into newer segments and healthy execution track record, we have a BUY rating on ENGR, with a Target Price of Rs107.
Intraday Picks
MARUTI (PREVIOUS CLOSE: 8959) SELL
For today’s trade, short position can be initiated in the range of ₹9050-9125 for the target of Rs.8750 with a strict stop loss of ₹9190.
IRCTC (PREVIOUS CLOSE: 642) BUY
For today’s trade, long position can be initiated in the range of ₹633- 639 for the target of Rs.660 with a strict stop loss of ₹625.
TECHM (PREVIOUS CLOSE: 1053) BUY
For today’s trade, long position can be initiated in the range of ₹1035- 1045 for the target of Rs.1085 with a strict stop loss of ₹1085
Oil prices rose in early Asian trade on Thursday, bouncing off multi-month lows in the previous session caused by data signalling weak U.S. fuel demand.
Brent crude futures rose 53 cents, or 0.6%, at $97.31 a barrel by 0020 GMT while West Texas Intermediate (WTI) crude futures rose 55 cents, also a 0.6% gain, to $91.21. Both benchmark fell to their weakest levels since February in the previous session.
Asset Reconstruction Co. of India (ARCIL) has emerged as the single challenger bidder to acquire Yes Bank’s ₹48,000 crore bad loan portfolio, two people aware of the matter said. The Avenue Capital-backed ARC has also tied up with private equity firm Cerberus Capital to finance the bid, the people said on the condition of anonymity.
The Directorate of Revenue Intelligence (DRI) has detected customs duty evasion of around ₹2,217 crore by smartphone maker Vivo India, a subsidiary of China-based Vivo Communication Technology, a Finance Ministry statement issued Wednesday said.
During the investigation, searches were conducted by DRI officers at the factory premises of Vivo India, which led to the recovery of incriminating evidence indicating wilful misdeclaration in the description of certain items imported by it for use in the manufacture of mobile phones, it said.
The Indian government on Wednesday informed the Lok Sabha that India's share in the estimated USD 360-billion global space economy is approximately two per cent. Minister of State in the Prime Minister's Office Jitendra Singh has reportedly said that India has acquired indigenous capabilities in the space sector across all domains, including space transportation systems, and space assets comprising a fleet of satellites catering to the needs of earth observation, satellite communication, meteorology, space science and navigation, according to news agency PTI report. (Full Report)
Recently-listed Life Insurance Corporation (LIC) has broken into the latest Fortune Global 500 list, while Reliance Industries has jumped 51 places.
The nation's biggest life insurer with revenue of USD 97.26 billion and a profit of USD 553.8 million, was ranked 98th on the just released Fortune 500 list.
Reliance Industries jumped 51 places to 104 on the 2022 list.
This is the first outing of LIC on the list, which ranks listed companies by sales.
Gold in the national capital on Wednesday declined by ₹208 to ₹51,974 per 10 grams, according to HDFC Securities.
The yellow metal had closed at ₹52,182 per 10 grams in the previous trade.
Silver also fell sharply by ₹1,060 to ₹57,913 per kg from ₹58,973 per kg in the previous trade.
IT industry players have appreciated the government's move to withdraw the personal data protection bill and sought participation in the consultation process of the fresh draft.
The industry was critical of the data protection bill tabled in Parliament by the Joint Committee on Personal Data Protection Bill.
The Joint Committee on Personal Data Protection Bill, 2019, headed by BJP member P P Chaudhary had tabled its report in Lok Sabha on December 16, 2021 which had a number of different points than the draft protection data bill (PDP) Bill prepared by the Ministry of Electronics and IT.
India’s central bank is expected to deliver another half-point increase in its main policy rate on Friday to signal it’s not letting up in its fight against inflation while fending off further attacks on the rupee.
Thirteen of 27 economists surveyed by Bloomberg as of Wednesday see the Reserve Bank of India’s six-member monetary policy committee increasing the repurchase rate by 50 basis points to 5.40%, a level last seen in August 2019. One predicted a 40 basis-point move, nine expect 35 basis points, and the remaining a quarter-point hike, which is enough to return borrowing costs to pre-pandemic levels of early 2020. (Full Report)
Tokyo stocks opened higher Thursday following gains on Wall Street, with investors eyeing corporate earnings.
The benchmark Nikkei 225 index climbed 0.69 percent, or 191.39 points, to 27,933.29 at the open, while the broader Topix index rose 0.34 percent, or 6.50 points, to 1,937.27.
U.S. stocks jumped to a sharply higher close and Treasury yields touched two-week highs on Wednesday as robust economic data, upbeat corporate guidance and easing geopolitical concerns boosted investor risk appetite.
Front-month crude futures dropped following a report that U.S. stockpiles of crude and gasoline unexpectedly surged last week.
All three major U.S. stock indexes advanced and the tech-laden Nasdaq ended the session at a three-month high.
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