PremiumMarket closing: Sensex closed at 54,525.93, down 28.73 points or 0.05%, while Nifty was at 16,282.25, up 2.15 points or 0.01%. Pharma, auto and financials were top drags at market close.
Sensex, Nifty closed flat on Wednesday. Foreign lenders have been forced to cut back on currency trades after the RBI warned lenders of a regulatory breach last week, saying they must limit their holdings of such unlisted securities to no more than 10% of investments classified as the non-statutory liquidity ratio portfolio. China added new credit at the slowest pace since February 2020 when the nation was in the depths of the initial Covid-19 lockdown, with the slowdown exacerbated by a drop in shadow banking. All eyes will be on US inflation data due later today.
The Indian rupee settled just 1 paisa lower at 74.44 (provisional) against the US dollar on Wednesday amid a muted trend in the domestic equity market. At the interbank forex market, the local unit opened at 74.43 against the greenback and witnessed an intra-day high of 74.37 and a low of 74.48. It finally ended at 74.44 against the American currency, registering a fall of just 1 paisa over its previous close. On Tuesday, the rupee had settled at 74.43 against the US dollar.
"The index saw a sharp selloff, but managed to take support around the 16,150 level. It bounced well and has again managed to close in the vicinity of 16,300. If we can close above the 16,300 level, the Nifty can move up to 16,600. Until then any intraday correction can be utilized to accumulate long positions as the trend is positive."
Sensex closed at 54,525.93, down 28.73 points or 0.05%, while Nifty was at 16,282.25, up 2.15 points or 0.01%. Pharma, auto and financials were top drags at market close. On the 30-share Sensex, Tata Steel, NTPC, Power Grid and 10 other stocks closed in green, while Kotak Mahindra Bank, Bajaj Auto, Sun Pharma, and 13 other stocks closed in red.
Novartis India's stock was trading at ₹841.25 each, down 4.65% at 3:28 pm. The company reported June quarter profit of ₹62.8 million compared to ₹43.9 million a year ago. June quarter revenue from operations stood at ₹981.1 million compared to ₹924.6 million a year ago.
Gold edged higher on Wednesday as concerns over the rapid spread of the Delta coronavirus variant spurred some safe haven buying though gains were capped by bets on early tapering by the U.S. Federal Reserve and a firm dollar. Spot gold was up 0.2% at $1,732.50 per ounce by 0919 GMT, recovering some ground after four straight sessions of declines. U.S. gold futures rose 0.1% to $1,733.60. (Reuters)
The government may approach 17 companies which will see relief due to the recent retrospective tax amendment, CNBCTV18 reported. Rajya Sabha on Monday took up The Taxation Laws (Amendment) Bill, 2021, with Opposition Congress, DMK and TMC staging a walkout, saying adequate time was not given to them to prepare for a discussion on the proposed legislation.
Enforcement Directorate has imposed a penalty of ₹5 crore under Section 13(1) of FEMA 1999 on Bank of Baroda for allowing remittance of the proceeds
towards the interest payment in the account of Amrapali Silicon City
Pvt. Ltd. The lender is examining the order for future course of action, it said.
The Bombay Stock Exchange (BSE) on Wednesday clarified on the new additional surveillance rules that intends to curb excessive price movement in securities listed on BSE trading platform. Midcap and smallcap stocks made a smart recovery post the clarification after trading with cuts from the past two sessions. BSE in a circular on Wednesday that in partial modification and supersession of the Exchange circular dated August 09, 2021, the following clarifications are being provided to simplify the understanding and implementation of the framework that the said framework is applicable to BSE Exclusive securities in groups viz. X, XT, Z, ZP, ZY, Y. (Read here)
India’s biggest automaker has warned that strict European-style emissions rules due to start next year will force up car prices, dealing another blow to an industry that was in a slump even before the pandemic hit. “Demand will fall further, and instead of any growth there will be a decline in the industry," Maruti Suzuki India Ltd. Chairman R.C. Bhargava said in an interview. “The industry view is that it’s already suffering a decline because of Covid, and on top of that we add further to the cost of vehicles because of new regulations." (Bloomberg)
The Modi government intends to privatise national carrier Air India and state-owned refiner Bharat Petroleum Corp Ltd this year, Tuhin Kant Pandey, Secretary, secretary, department of investment and public asset management (DIPAM) said at CII Annual Session, news agency ANI tweeted. "Our disinvestment is back on track. We intend to privatize Air India privatization this year and are also aiming for BPCL privatization this year itself," said Tuhin Kant Pandey, secretary, DIPAM. (Read here)
Eurosport India, the sports channel from broadcast network Discovery, on Wednesday said that it has secured the broadcast rights of the Tokyo 2020 Summer Paralympic Games scheduled to be held between 24 August and 5 September, 2021. The sports channel shall be the exclusive pay TV partner in the SAARC countries. The Paralympic Committee of India has awarded the rights to Eurosport India that includes showcase of live sports, delayed telecast and highlights across key events in 22 sporting disciplines. This will be Eurosport’s first global multi-sport event in India.
"During the Q1FY22, Safari Industries Ltd (SIL) reported consolidated revenue of ₹120 crore (up 497% year-on-year) mainly due to healthy recovery in sales. On the consolidated ebitda front, the company has reported profit of ₹7 crore against loss of ₹19 crore in Q1FY21 due to better operating leverage. On the bottom-line front, the company has reported profit of ₹2.5 crore against loss of ₹19 crore due to higher sales and better operating performance. Going forward, we expect SIL to report strong top-line and bottom-line growth on the back of strong growth in the organized sector, wide distribution network, strong brand and promoter initiatives. We are positive on the stock with a 'Buy' rating."
RBL Bank on Wednesday announced that it has been empanelled by the Reserve Bank of India (RBI) as an ‘Agency Bank’ to conduct banking business for the central and state governments, the bank informed in a regulatory filing. The announcement comes close on the heels of a recent RBI guideline that authorises scheduled private sector banks as Agency Banks of the regulator for the conduct of government business. (Read here)
Twenty state governments have aggregate unutilised borrowings of ₹2.6 trillion for FY21, which have been carried forward to FY22, according to estimates by rating agency Icra. For the current fiscal, of the normal net borrowing ceiling (NBC) of 4% of gross state domestic product (GSDP) set by the Union government for the 28 state governments (Rs. 8.5 trillion), 3.5% of GSDP may be considered unconditional. The permission for the balance 0.5% of GSDP (Rs. 1.1 trillion) has been earmarked by the government towards incremental capital expenditure by state governments in FY22, making it effectively conditional in nature. The size of unutilised borrowings of FY21 as a proportion of the FY2022 GSDP exceeds 0.5% of GSDP for 15 states, reducing their likely dependence on the conditional borrowing of 0.5% of GSDP, Icra said. (Read here)
Cadila Healthcare's stock was trading at ₹559.40 each, down 3.18%. The company reported Q1 ebitda of ₹9.3 billion compared to ₹8.15 billion a year ago. Q1 ebitda margin stood at 23% compared to 22.40% a year ago. The pharma company’s business in the US posted sales of ₹14.51 billion.
Larsen & Toubro on Wednesday announced the divestment of 100% stake in the 3 x 33 MW (99 MW) run of the river hydroelectric power plant owned by its subsidiary L&T Uttaranchal Hydropower Limited (LTUHPL) to Renew Power Services Private Limited, a wholly owned subsidiary of Renew Power Private Limited. (Read here)
Trent Ltd’s June quarter results (Q1FY22) show that the recovery being witnessed following the easing of the first lockdown last year has paused. After all, standalone revenues declined as much as 58% vis-à-vis the March quarter. Of course, year-on-year growth numbers were exceptionally high given the low base. The company’s fashion business (Westside and Zudio) operated for just 46% of the trading days, although this was up from 26% in Q1FY21. This measure stood at 80% for the March quarter. (Read more)
"Lupin Ltd reported top line growth of 22.1% at ₹4,237.3 crore as compared to ₹3,468.6 crore in Q1FY21. Company reported ebitda of ₹992.6 crores, up by 86% as compared to ₹531 crores in Q1FY21 and ebitda margins of 23.4%, up by 810 bps. Profit before tax was up by 175% at ₹750 crore as compared to ₹272.4 crore. Lupin has reported good growth in topline as well as bottom line, but below the market expectations as Q1FY21 was the low base for the company due to covid related disruptions. Company has reported a dip in gross profit margins from 65% to 63.9% quarter-on-quarter. Domestic market has done well for the company, domestic market sales were up by 27.3% year-on-year and 27.2% quarter-on-quarter. We expect the domestic market to continue its momentum for the next couple of quarters. We have a neutral outlook on Lupin Ltd."
- LIC IPO can be expected this fiscal
- 50,000 cr dividend expected from CPSEs
- BEML divestment to be completed this year
- EoIs for Concor expected as soon as land lease policy is finalised
API Holdings Pvt., owner of India’s largest online pharmacy PharmEasy, is considering a Mumbai initial public offering that could raise as much as $1 billion, Bloomberg reported, citing people familiar with the matter. The company, backed by TPG and Temasek Holdings Pte, is working with advisers on a potential offering that could take place by March 2022, the people said. The firm plans to file a draft prospectus before the end of October, said one of the people, who asked not to be identified as the information is private. In June, API Holdings unit Docon Technologies Pvt. Ltd agreed to acquire a 66.1% stake in diagnostic chain Thyrocare Technologies for ₹4,546 crore.
Dabur India's stock was trading at ₹574.50 each, down 0.85% at 11:51 am. The company's promoters, the billionaire Burman family is set to pare its stake and give up control of a life insurance joint venture with UK’s Aviva Plc as part of its strategy to raise capital for the core consumer goods business, two people with direct knowledge of the matter said. The deal will see the Burman family stake drop to 26% from the current 51% in Aviva Life Insurance Co., the people said, requesting anonymity. Aviva’s holding will rise to 74%, giving the foreign partner control of the life insurer.
Shipping Corporation of India's stock was trading at ₹103.45, down 1.19% at 11:41 am. The company reported a shortage of containers, however, chief executive H.K. Joshi said this was not a matter of concern. The company top line reported a drop owing to demand shortage in the tanker segment. On 4 August, the company reported reported a consolidated net profit of ₹158.51 crore for the first quarter of the current fiscal. The company had clocked a consolidated net profit of ₹336.87 crore in the corresponding period a year earlier, according to a regulatory filing.
Sugar prices hit their highest level in more than four years on Tuesday after a report confirmed damage to sugarcane crops in the world's larger producer Brazil from unusually harsh frosts in June and July, Bloomberg reported. Sugar production in Brazil's centre-south region fell by 11% in the second half of July to 3 million tonnes, industry group Unica said, more than expected. Unica added that the three waves of frosts that hit the agricultural areas had further damaged crops already hurt by the worst drought in 90 years. Earlier, Fitch Solutions had again revised its 2021 price forecast for sugar upwards as prices remained more supported than it was expecting amid bad weather in Brazil. It now forecasts prices to average USc16.5/lb in 2021 compared with USc14.7/lb previously. This suggests sugar prices will average at their highest level since 2016 in 2021. (Read more)
GMR Infrastructure on Tuesday said its board will consider a proposal for raising up to ₹6,000 crore through various routes at its meeting on August 13, 2021. In a BSE filing, GMR Infrastructure said it would consider raising funds of up to ₹6,000 crore in one or more tranche(s), through the issue of securities, including a qualified Institutions placement and/or foreign currency convertible bonds and/or any other securities. The company said its Board of Directors is scheduled to meet on August 13 to consider and approve the unaudited financial results for the quarter ended June 30, 2021. PTI BKS BAL BAL
"Copper prices are down by 0.5% on the MCX as well as on the LME in today's session as the supply side stress for Copper ease. The BHP Group and the labor union at Escondida mine struck a tentative deal on Tuesday after months of negotiations which took some pressure off the Copper supply chain.
The ongoing labor negotiations in several mines of Chile had raised genuine supply concerns in the global Copper market in time of booming demand. However, the tentative deal at the Escondida Mine, world’s largest copper deposit, has averted the worries over a potential strike, which dragged the prices lower."
Indian conglomerate RattanIndia Enterprises Ltd., which has interests in power generation, transmission, electric mobility, consumer finance and renewable energy, on Tuesday said that it will make a strategic investment in US-based urban drone logistics platform Matternet. (Read here)
Early-stage venture capital firm Stellaris Venture Partners has closed its second fund at $225 million, much higher than it had planned, supported by existing limited partners or backers as well as other global institutions. Global institutional capital forms 80% of the capital base of the second fund and the remaining was raised from founders based in India and the US. Its first close in April and was fully subscribed within 45 days. (Read here)
The Indian rupee opened on a flat note and inched 4 paise higher to 74.39 against the US dollar in opening trade on Wednesday, amid a negative trend in domestic equities. At the interbank foreign exchange, the rupee opened at 74.43 against the dollar, then inched 4 paise higher to 74.39. On Tuesday, the rupee had settled at 74.43 against the US dollar. (PTI)
Private sector lender Yes Bank is looking to partner with investors to set up an asset reconstruction company and has appointed EY as its process advisor, according to a public notice on Wednesday
Shares of Prestige Estates Projects Ltd fell 7% on the NSE in Wednesday's opening trade reacting to its June quarter earnings. Covid-led disruption weighed on the company's residential sales impacting its overall performance.
The Bangalore-based real estate developer reported subdued results with booking volume at 1.1 million square feet (msf) down 60% sequentially. Sales value at ₹734 crore fell around 59% during the quarter. Overall collections stood at ₹1,023 crore, down 42% sequentially, out of which the company's share was ₹827 crore.
Zomato:'s stock was tradign at ₹130.75 each, up 4.64% at 10:18 am. The food delivery platform on Tuesday reported a sharp increase in quarterly loss in its first earnings release after last month’s blockbuster initial public offering. Loss widened to ₹360.7 crore in the quarter ended 30 June from ₹134.2 crore in the preceding three months because of an expanded Employee Stock Ownership Plan (ESOP) pool. The company compared earnings sequentially as its financials for the first quarter of FY21 were severely impacted because of the covid-19 outbreak and subsequent national lockdown. (Read more)
India and some other emerging markets and the US are seeing fund inflows redirected from China as recent regulatory crackdowns in the world's second-biggest economy have spooked markets, says veteran investor Mark Mobius, who is often referred to as emerging markets guru. "I would say half the money has just left ... But I think that is temporary, it will not last," Mobius, emerging markets fund manager and founder of Mobius Capital Partners, told the Reuters Global Markets Forum (GMF). (Read here)
"The Nifty continues its struggle to keep above the 16,300 level. It is facing resistance every time it tries to conquer it. If we can get past that on a closing basis, we should go up higher to 16,600. On the flip side, a good support lies at 16,100. As long as that holds, we are in bullish terrain."
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Vodafone Idea's stock was trading at ₹6.52, down 2.25% at 9:47 am. It has filed a review petition of the Supreme Court's 23 July ruling on the adjustment of arithmetic errors" in the computation of AGR dues. Airtel is also likely to move the court for relief, according to CNBC TV. Earlier the Supreme Court dismissed the applications of Vodafone and Bharti Airtel for the recomputation of AGR dues demanded by the Department of Telecommunication (DoT).
A Chinese court convicted Canadian businessman Michael Spavor of espionage on Wednesday and sentenced him to 11 years in prison, in a case seen in Ottawa and Washington as part of a wider diplomatic spat with Beijing. His sentencing comes as lawyers in Canada representing the chief financial officer of Chinese telecoms giant Huawei make a final push to convince a court there not to extradite her to the United States. The Dandong Intermediate Court also said 50,000 yuan of Spavor's personal assets will be confiscated and he will be deported, although it was not clear when. Beijing-based lawyer Mo Shaoping told Reuters that deportation generally takes place after the person has finished serving the sentence but may happen earlier for special cases. (Reuters)
The Sensex opened at 54,724.12, up 169.46 points or 0.31%, while the Nifty was at 16,327.30, up 47.20 points, or 0.29%. IT, pharma, realty were top drags. On the 30-share Sensex, Tata Steel, Maruti, Bajaj Finance, and 22 other stocks opened in green, while IndusInd Bank, Nestle India, Bharti Airtel, Titan, and Ultratech opened in red.
"Nifty is expected to open positive , up by about 40 points at 16,310 levels. Since the last few days, Nifty had been trading in the 16,180 to 16,360 range. On the break of 16,360 on closing basis with higher than average volumes, Nifty can test 16,450 and 16,500 levels in the next few days. Bank Nifty can test 37,000 levels if it closes above 36,200 with good volumes. Trend in Nifty will remain bullish as long as it is trading above 15,900 levels."
At pre-opening, the Sensex was at 54,730.65, up 175.99 points, or 0.32%, while the Nifty was at 16,280.10, up 21.85 points or 0.13%.
Pizza Hut franchise operator Sapphire Foods India Ltd has filed a draft red herring prospectus with the Securities Exchange Board of India to raise funds via an initial public offering. The IPO consists of a pure offer for sale of 17.57 million shares by existing shareholders and promoters.
Delhi chief minister Arvind Kejriwal will launch the transport department's 'faceless' services today (i.e. on Wednesday, August 11). The Delhi government bringing online all the driving licences, registration 4 and permit-related services of its Transport department, four motor licensing offices will get closed down, according to an order of the department on Tuesday. (Read here)
A firm specializing in transferring cryptocurrency said Tuesday that hackers cracked its security, making off with a record-setting haul potentially worth $600 million. Poly Network put out a plea for the stolen Ethereum, BinanceChain and OxPolygon tokens to be shunned by traders running "wallets" for storing cryptocurrency. (Read here)
Chinese video-sharing app TikTok was the world's most downloaded app in 2020, overtaking Facebook and its messaging platforms, a survey has revealed.
According to data compiled by Nikkei Asia from analytics platform App Annie, TikTok was at the number 4 spot in 2019. It managed to become the most downloaded app in the US in 2020, overtaking Facebook Messenger, the report added. (Read here)
Google employees based in the same office before the pandemic could see different changes in pay if they switch to working from home permanently, with long commuters hit harder, according to a company pay calculator seen by Reuters. (Read here)
The India International Exchange (India INX) on Tuesday said it will soon facilitate buying and selling of shares of foreign stocks, including major US-listed companies, through its platform. (Read here)
Soon, you will be able to buy stocks of select US companies through the National Stock Exchange’s (NSE’s) International Financial Services Centre (IFSC) platform in Gujarat’s GIFT City. On Monday, NSE said this will make US stocks affordable for Indian retail investors. (Read here)
Day trading guide for Wednesday: The range-bound action with volatility continued in the markets for the fourth consecutive sessions on Tuesday. The NSE Nifty closed 21 points higher at 16,280 while BSE Sensex surged 151 points and closed at 54,554 levels on Tuesday. On a day of normal volumes, telecom and IT went upside the most while realty, power and metals fell the most. Advance decline ratio was the lowest since 23rd December 2020. S&P BSE mid-cap index slipped nearly 1 per cent and the S&P BSE small-cap shed over 2 per cent. In the global markets, Wall Street continues to remain choppy as Dow Jones ended 0.46 per cent higher while Nasdaq shed 0.49 per cent on Tuesday. (Read here)
SoftBank founder Masayoshi Son on Tuesday said its portfolio company Swiggy is expected to deliver “good returns" if the food delivery platform were to go public. Speaking at a post-earnings presentation for SoftBank, Son said one of Swiggy's rivals has recently gone public and its share price is doing great. (Read here)
Coal India on Tuesday reported a Q1 consolidated net profit at ₹3,170 crore, up 52% as compared to ₹2,078 crore in the same quarter last year. The company's total revenue from operations rose nearly 37% to ₹25,282 crore as against ₹18,487 crore year-on-year (YoY). (Read here)
Aster DM Healthcare, Bajaj Electricals, Bata India, CESC Ltd, Cadila Healthcare, Cummins India, Equitas Holdings, GE Power India, GIC Housing, Greaves Cotton Ltd, IDFC Ltd, India Cements, Lemon Tree Hotels, Navneet Education, NESCO Ltd, New India Assurance, Pidilite Industries, PNC Infratech, PTC India, VIP Industries, among other companies will post their Q1 results today.
RIL, Vedanta, Zomato, JSPL, IndusInd Bank, among othjer stocks may be in the news today. (Read here)
Markets are likely to consolidate on Wednesday while trends in SGX Nifty suggest a positive opening of Indian benchmark indices. On Tuesday, the BSE Sensex closed at record high with the 30-share index gaining 151.81 points or 0.28% at 54,554.66. The Nifty was up 21.85 points or 0.13% at 16,280.10. (Read here)
India on Tuesday urged its nationals in Afghanistan to make immediate arrangements to return before air services are discontinued to their place of stay or travel given the deteriorating security situation in the country.
The advisory issued by the Indian embassy in Kabul came on a day when New Delhi evacuated its diplomatic staff from the consulate in northern Mazar-e-Sharif city, capital of Balkh province, bordering Uzbekistan and Tajikistan. This followed reports of fierce fighting between the rebel Taliban and Afghan security forces and militias owing allegiance to Afghan warlords as the country looked set to spiral into civil war. (Read here)
Asian stocks were mixed Wednesday as investors awaited a key report on U.S. inflation. Treasuries and the dollar were steady. Shares rose in Japan and Australia and fluctuated elsewhere. U.S. futures were little changed. Earlier, the S&P 500 climbed to an all-time high, while the tech-heavy Nasdaq 100 declined. Chip stocks slipped, while energy shares rallied. Crude oil bounced back from a three-week low on bets that the global demand recovery will remain intact despite the fast-spreading delta virus variant. Data out Wednesday are expected to show prices paid by U.S. consumers grew in July at the slowest pace in five months, though remain elevated.S&P 500 futures were little changed as of 10:48 a.m. in Tokyo.
The S&P 500 rose 0.1%
Nasdaq 100 contracts were little changed. The Nasdaq 100 fell 0.5%
Topix index rose 0.8%
Australia’s S&P/ASX 200 Index rose 0.5%
Kospi index fell 0.2%
Hang Seng Index was little change
Shanghai Composite Index rose 0.2%
SGX Nifty was up 0.26%
Global stock markets strengthened on Tuesday, hovering close to record highs, while U.S. Treasury yields rose to their highest levels since mid-July, spurred by Federal Reserve tapering talk. Sentiment was boosted by the U.S. Senate passing a $1 trillion bipartisan infrastructure bill that could provide the US with its biggest investment in decades in roads, bridges, airports and waterways. That helped the Dow Jones Industrial Average and S&P 500 close at record highs.
The Dow Jones Industrial Average rose 162.82 points, or 0.46%, to 35,264.67, the S&P 500 gained 4.4 points, or 0.10%, to 4,436.75 and the Nasdaq Composite dropped 72.09 points, or 0.49%, to 14,788.09.
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