Among sectoral indices on the NSE, Nifty PSU Bank index fell the most - down 1 per cent.
The benchmark indices ended on a flat note with negative bias for the second straight session on Thursday amid selling in financial and pharma counters. The S&P BSE Sensex ended at 38,310 levels, down 59 points or 0.15 per cent while NSE's Nifty ended at 11,300, down 0.07 per cent.
The broader market, however, outperformed the benchmark indices. The S&P BSE MidCap index ended 1.6 per cent higher at 14,583 levels while the S&P BSE SmallCap index settled at 13,940, up 0.76 per cent.
Among Sensex constituents, Bharti Airtel (down over 2 per cent) ended as the biggest loser on the index after reports said that MSCI reduced the weight of the stock in its MSCI India and MSCI EM indices by half. The reports, however, further said MSCI reduced the weight of the stock on wrong market data.
Larsen & Toubro (up over 4 per cent), on the other hand, emerged as the top gainer on the index.
Among sectoral indices on the NSE, Nifty PSU Bank index fell the most - down 1 per cent, followed by Nifty Pharma (down 0.97 per cent), and Nifty Bank (down 0.3 per cent). On the other hand, Nifty Auto surged 1.22 per cent to 7,879.75 levels while Nifty Metal index gained over 1 per cent to 2,380.65 points.
Shares of Tata Consumer Products rallied nearly 5 per cent to hit a fresh record high of Rs 542.90 apiece on the BSE. With today's rally, the company surpassed the fast-moving consumer goods (FMCG) major Marico in terms of market capitalisation (m-cap). READ MORE
Shares of Ashok Leyland ended over 13 per cent higher at Rs 61 on the BSE after the company said it expects Q3 and Q4 of financial year 2020-21 (FY21) to be better than the previous quarters while margins are also expected to rise going ahead.
Shares of Aurobindo Pharma dipped 5.64 per cent to Rs 881.30 on the BSE despite the company reporting a 22.81 per cent year-on-year (YoY) rise in its consolidated net profit to Rs 780.68 crore for the quarter ended on June 30, 2020, mainly on account of robust sales in the US market. READ MOREGlobal markets
Japanese stocks soared to a six-month peak and the dollar was under pressure on Thursday as investors picked positives out of recent economic data and bet on China and the United States sticking with their trade deal at a crucial weekend meeting.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 per cent, while gains in semiconductor makers drove Japan's Nikkei 1.8 per cent higher to a six-month peak.
Euro STOXX 50 futures were last down 0.1 per cent, FTSE futures slipped 0.7 per cent and S&P 500 futures ESc1 were down 0.1 per cent.
In the commodity market, crude oil prices fell after OPEC said it expected demand to drop more than expected, although data showing a decline in US inventories lent support.
(With inputs from Reuters)
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The S&P BSE Sensex fell 59 points, or 0.15 per cent to end at 38,310.49 while NSE's Nifty ended at 11,300.45, down 8 points or 0.07 per cent.
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3:21 PM IST Sundaram Finance (SUF) earnings were largely in-line. NII at Rs 3.8bn came in as expected though a drop in fee income led to a miss on PPoP. Healthy NIM trajectory was intact with incremental funding cost trending downwards. AuM growth declined by 1.3% YoY as disbursements saw a steep drop though repayments were higher which was a positive. Disbursements and collection efficiency are picking up. Asset quality was contained sequentially though Covid-19 provisions were Rs 1.1bn taking the total COVID-19 reserve to Rs1.37bn (appropriation of profits). The average moratorium is 55% though moratorium -1 to 2 saw a drop from ~65% to ~45%. See RoA/RoE scale up to 2.2%/13.6% in FY22E. Maintain BUY with SOTP based TP at Rs 1,450.
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2:25 PM IST Tata Consumer Products reported an 81.78 per cent year-on-year (YoY) rise in its net profit at Rs 345.55 crore for the quarter ended June (Q1FY21), aided by an increase in demand in some categories. Revenue from operations was up 13.44 per cent to Rs 2,713.91 crore as against Rs 2,392.36 crore in the corresponding period of the last fiscal. READ MORE
SECTOR WATCH:: Auto, metal stocks rally in the trade
MARKET AT CLOSE:: Losers and gainers on the S&P BSE Sensex
The S&P BSE Sensex fell 59 points, or 0.15 per cent to end at 38,310.49 while NSE's Nifty ended at 11,300.45, down 8 points or 0.07 per cent.
BROKERAGE VIEW:: Centrum Broking on Sundaram Finance
Sundaram Finance (SUF) earnings were largely in-line. NII at Rs 3.8bn came in as expected though a drop in fee income led to a miss on PPoP. Healthy NIM trajectory was intact with incremental funding cost trending downwards. AuM growth declined by 1.3% YoY as disbursements saw a steep drop though repayments were higher which was a positive. Disbursements and collection efficiency are picking up. Asset quality was contained sequentially though Covid-19 provisions were Rs 1.1bn taking the total COVID-19 reserve to Rs1.37bn (appropriation of profits). The average moratorium is 55% though moratorium -1 to 2 saw a drop from ~65% to ~45%. See RoA/RoE scale up to 2.2%/13.6% in FY22E. Maintain BUY with SOTP based TP at Rs 1,450.
MARKET CHECK: Top 5 losers on the BSE at this hour
Nifty PSU Bank index dips 1%
NEWS ALERT :: L&T Construction bags order for projects worth Rs 1,000-2,500 cr
Tata Consumer Products reported an 81.78 per cent year-on-year (YoY) rise in its net profit at Rs 345.55 crore for the quarter ended June (Q1FY21), aided by an increase in demand in some categories. Revenue from operations was up 13.44 per cent to Rs 2,713.91 crore as against Rs 2,392.36 crore in the corresponding period of the last fiscal. READ MORE
Rupee ends flat vs Wednesday's close of 74.83 per US dollar
June Quarter Result :: GAIL reports consolidated net profit of Rs 643 cr
>> Consolidated revenue of Rs 12,174 crore
>> Cons EBITDA at Rs 693.7 crore
BUZZING STOCK:: Titan top Sensex gainer at this hour
Bharat Forge: Investors should wait for improvements in orders, core biz
The Bharat Forge stock has gained 5.3 per cent on expectations of a gradual growth uptick in the coming quarters, upside from defence orders, and margin outlook. While the June quarter was a washout given the lockdown, the management indicated there have been some "green shoots" in most segments, both in domestic and export markets. READ MORE
European stocks trade largely lower in early deals
SBI eyes three-fold rise in retail, MSME gold loan business in FY21
It will use digital banking platform YONO extensively to cut-down on response time and scale up activity for it.
Banks including SBI have an edge over gold loan companies due to lower lending rates. But they often lose out on turnaround time - take longer to give loans, while likes of Muthoot and Manappuram act quickly. READ MORE
PE/VC investments drop 51% to $4.1 billion as big deals shrink in July
PE/VC investments in July 2020 stood at $4.1 billion, down by 51 per cent compared to $8.4 billion in July 2019. The decline was due to fewer large deals across segments. Nonetheless, if we exclude the investments in Jio Platforms, July 2020 has been the best month so far in 2020, recording investments worth $3.7 billion. According to the IVCA-EY report, July recorded 10 large deals (value greater than $100 million) worth $3.1 billion compared to 13 large deals worth $7.1 billion in July 2019. READ MORE
NEWS ALERT :: SC on BS-IV vehicle registration case
>> Justice Mishra today asks Senior Advocate, KV Vishwanathan, "Is this not a fraud on the Court that you say that there will not be many sales during this period and then the sale is higher during this lockdown period?"
>> On July 31, the SC had also expressed displeasure on the sale of large number of vehicles in March during Covid-19 lockdown, the SC said that an unusual number of BS-IV vehicles were sold during the time.
NEWS ALERT :: SC prohibits registration of BS-IV vehicles
>> Says, will take action against auto-firms
>> KV Vishwanath for FADA seeks to clarify that various methods like discounts and slump sale was adopted as manufacturers refused to take back the stock/inventory
This highway developer's Q1 nos beat estimates; analysts bullish on the stock
Nirmal Bang Institutional Equities, apart from better-than-expected results, is betting on the government's push towards infra-development which may augur well for the company in future. READ MORE
Ashok Leyland leaps 10% post Q1 nos; Co expects margin to improve ahead
Shares of Ashok Leyland surged 10 per cent to Rs 59.30 on the BSE on Thursday after the company said it expects Q3 and Q4 of financial year 2020-21 (FY21) to be better than the previous quarters while margins are also expected to rise going ahead. Meanwhile, the company reported a consolidated net loss of Rs 388.82 crore for the first quarter ended June 30, owing to the coronavirus pandemic. In comparison, the commercial vehicle maker had posted a net profit of Rs 274.96 crore in Q1FY20. READ MORE
Nifty sectoral indices at this hour
Shadow bank bond sales rebound as lenders raise Rs 81,300 cr since April
Indian shadow lenders are selling the most local-currency bonds since before a financial crisis engulfed the sector two years ago, in a sign that record stimulus is easing their fundraising burden. The financiers have raised Rs 81,300 crore ($10.9 billion) through rupee notes since April 1, making it the best start to a financial year since 2017. Offerings from non-bank firms had declined in 2018 and 2019 as at least three shadow lenders defaulted on their repayments, battering investor demand for the sector’s debt. READ MORE
Shree Cement: Lower realisation outlook, weak cost control raise concerns
Shree Cement’s stock shed about 4.5 per cent in the last two trading sessions, even as the benchmark BSE Sensex was up 0.5 per cent during the same period. At around 24x its FY21 estimated EV/Ebitda (enterprise value to earnings before interest, tax, depreciation, and amortisation), the stock is trading at a 70 per cent premium to some other large cement players. READ MORE
Bharat Forge surges 13% post June quarter nos; here's what brokerages say
Analysts with Motilal Oswal Financial Services (MOFSL) note that the company's 1QFY21 operating performance was commendable considering EBITDA breakeven at 20 per cent utilisation. "With enhanced capabilities, improved efficiency, low gearing, and a strengthened position in the global supply chain, Bharat Forge would come out stronger from this downcycle," the brokerage said in a report issued on August 12. It has a "BUY" rating on the stock with the target price of Rs 500. READ MORE
Tata Power rallies 8% on merger proposal with 3 wholly-owned subsidiaries
Tata Power shares surged as much as 8.3 per cent to Rs 57.4 on the BSE on Thursday after the firm reported June quarter result post market hours on Wednesday. The company's net profit rose by 10 per cent to Rs 268 crore for quarter ended June on the back of reduced expenses, compared to a net profit of Rs 243 crore reported during the same period a year ago. READ MORE
Result Today :: Hero MotoCorp's Q1 profit may dip up to 94% YoY as sales take a hit
Analysts expect the company's Q1 net profit to tumble anywhere in the range of 72-94 per cent on a year-on-year basis (YoY), led by massive decline in overall volumes. Revenues are also seen declining around 60 per cent YoY due to the disruption in the company's operations caused by coronavirus-led nationwide lockdown. READ MORE
eClerx Services hits 20% upper circuit as Q1 net rises 30% YoY to Rs 52 cr
Shares of eClerx Services were frozen at 20 per cent upper circuit band of Rs 620.50 apiece on the BSE on Thursday after the company reported steady numbers for the quarter ended June 2020 (Q1FY21). The firm posted a 30 per cent year-on-year (YoY) rise in its consolidated net profit at Rs 51.8 crore against Rs 39.8 crore in the corresponding quarter of the previous fiscal. READ MORE
Here's how to use Golden Ratio and Fibonacci sequence in trading
The Golden ratio -- 1.618 -- is derived from the Fibonacci sequence, named after its Italian founder, Leonardo Fibonacci. In the sequence, each number is simply the sum of the two preceding numbers (1, 1, 2, 3, 5, 8, 13, and so on). READ MORE
Aster DM Healthcare tumbles 7% on Rs 83 crore loss in June quarter
The company reported a standalone net loss of Rs 27.52 crore for the quarter udner review, as against Rs 17 crore loss in the year-ago period. Sequentially, the company had posted a profit of Rs 20 lakh in the March quarter of FY20. Besides, its revenue from operations declined from Rs 171.18 crore, reported in Q1FY20, to Rs 135.40 crore in the recently concluded quarter. READ MORE
Aurobindo Pharma declines 4% despite 23% YoY jump in June quarter profit
Shares of Aurobindo Pharma dipped 4.47 per cent to Rs 892.25 on the BSE on Thursday despite the company reporting a 22.81 per cent year-on-year (YoY) rise in its consolidated net profit to Rs 780.68 crore for the quarter ended on June 30, 2020, mainly on account of robust sales in the US market. Consolidated revenue from operations of the company stood at Rs 5,924.78 crore for the quarter under consideration. It was Rs 5,444.60 crore for the same period a year ago, Aurobindo Pharma said in a filing to BSE. READ MORE
Trump or Biden? Global equity markets to chart their own course: Analysts
“I don’t think the consensus is that Trump will come back to power and that will be good for the market. In the US, there are very little policy levers that the government has for the stock markets apart from the interest rates. And that will continue irrespective of who will be the president," says Shankar Sharma, vice chairman & joint managing director at First Global. READ MORE
Rupee opens unchanged at 74.82 against the US dollar
Indiabulls Group stks rally as SS Mundra to be non-executive chairman of IBHFL
Shares of Indiabulls Group stocks were trading in the positive territory on the BSE on Thursday, a day after the company informed that Subhash Sheoratan Mundra, former deputy governor of Reserve Bank of India (RBI), and an independent director on the board, will be non-executive chairman of Indiabulls Housing Finance (IBHFL). The announcement came after Sameer Gehlaut stepped down as executive chairman of Indiabulls Housing Finance with immediate effect. READ MORE
>> SBI MF decreased their stake from 4.9% to 4.39% on Aug. 11
Nifty IT index surges as Trump admin relaxes some H1-B visa rules
Ashok Leyland gains despite Q1 loss of Rs 389 cr
Strides Pharma up 1%
>> The Board of Sequent Scientific at its meeting held on Wednesday has approved the sale of 33,12,500 shares of Strides Pharma Science, held by the company to the existing Promoter Group of the company.
Indiabulls Housing Fin appoints ex-RBI deputy guv as non-executive chairman
>> Sameer Gehlaut has stepped down as executive chairman of Indiabulls Housing Finance with immediate effect. SS Mundra, former deputy governor of Reserve Bank of India and an independent director on the board, will be a non-executive chairman, the company said on Wednesday.
Result Impact | Graphite India trades mildly lower
>> The company reported a pre-tax loss of Rs 80 crore in the June quarter compared to a pre-tax profit of Rs 333 crore in the same period last year on the back of lower volumes and realisation.
Brigade Enterprises gains over half a per cent
>> With sales and operations hit by the Covid-19 pandemic and the subsequent lockdown, Bengaluru-based real estate company Brigade Enterprises registered a pre-tax loss of Rs 85.8 crore in Q1FY21. It had posted a PBT of Rs 73.34 crore in the corresponding period of the last year.
Aurobindo Pharma slips 2% post Q1 nos
>> The pharma company on Wednesday reported an 8.8 per cent year-on-year (YoY) rise in its revenue from operations at Rs 5,924.8 crore. Net profit rose 22.8 per cent to Rs 780.6 crore for the quarter ended June 2020.
Sectoral trends on NSE at Open
Top gainers and losers on the S&P BSE Sensex at Pre-open
Markets at Pre-open
Markets at Pre-open
Top stocks to watch out for today
Aurobindo Pharma: The pharma company on Wednesday reported an 8.8 per cent year-on-year (YoY) rise in its revenue from operations at Rs 5,924.8 crore. Net profit rose 22.8 per cent to Rs 780.6 crore for the quarter ended June 2020.
Hero MotoCorp: Hero MotoCorp is scheduled to announce its June quarter results for the first quarter of fiscal 2021 (Q1FY21) on Thursday. Analysts expect the company's Q1 net profit to tumble anywhere in the range of 72-94 per cent on a year-on-year basis (YoY), led by massive decline in overall volumes.
Indiabulls Group stocks: Sameer Gehlaut has stepped down as executive chairman of Indiabulls Housing Finance with immediate effect. SS Mundra, former deputy governor of Reserve Bank of India and an independent director on the board, will be a non-executive chairman, the company said on Wednesday. READ MORE
Trump admin relaxes rules for some H-1B visas, allows spouses to travel
The US Department of State advisory said dependents (spouses and children) will also be allowed to travel along with primary visa holders.
"Travel by applicants seeking to resume ongoing employment in the United States in the same position with the same employer and visa classification," the state department advisory said. READ MORE
NEWS ALERT :: Zydus launches Remdac (Remdesivir) for the treatment of Covid-19 in India
>> Priced at Rs. 2800 for a 100 mg lyophilized injection, Remdac is the most economical Remdesivir brand in India
>> The drug will be made available across India through the group’s strong distribution chain reaching out to Government and private hospitals treating Covid patients.
>> Tata Power (TPWR)’s results reflect the benefit of asset monetization plans and better WC management as net debt (excl. restricted cash at CESU) declined to INR444b (from INR471b in FY20).
>> Divestment-related measures (part receipt of International Shipping business, Arutmin, and Tata SED) and the infusion of INR26b from promoters would continue to aid debt reduction. As we build-in expectations of normalization in its EPC businesses and some WC by FY22, we view the risk-reward as favorable at current levels. The approval of a tariff hike at Mundra, possible benefits from the merger of CGPL & Tata Power Solar with TPWR, and favorable InvIT valuations provide upsides.
BROKERAGE VIEW :: Motilal Oswal Financial Services on Hindalco
CMP: Rs 176 | TP: Rs 233 (+33%) | Reco: Buy
>> Hindalco’s (HNDL) subsidiary Novelis’ 1QFY21 operating results were weak (in-line). EBITDA was down 40% YoY to USD219m on like-to-like basis (excluding Aleris) due to the impact of Covid-19.
>> However, business performance improved substantially with both volumes and margin now inching back to pre-Covid levels. We have raised our FY21/FY22E EBITDA estimates by 4%/6% and reiterate Buy. Note that valuation at 5.3x FY22E EV/EBITDA (~20% discount to 10-year average) does not factor in the expected ~9% CAGR in EBITDA over FY20-22E.
>> Outlook for Novelis is positive due to by resilience in the beverage can business and global recovery in auto demand (a high margin business).
BROKERAGE VIEW :: Jefferies on Graphite India
>> Co's Q1 revenue beat our expectations but EBITDA fell short
>> Covid disruption led to poor offtake, impacting realisations and volume
>> We trim FY21 margin, retain FY22/23 estimates
BROKERAGE VIEW :: Jefferies on Tata Power
>> Co reported near-zero EBITDA
>> Co has seen severe downturn in Q1 but should see growth sequentially
>> See tailwind from passenger vehicle imports, new emission parts, defence
BROKERAGE VIEW :: Morgan Stanley on Cummins India
Maintains 'Overweight', Target price: Rs 460
>> Low commodity prices and forex benefit cushioned margins
>> Next 12-18 months remain challenging
Nifty may face resistance in sub-11,350 zone
As per weekly option data, handful of call writing on higher strikes, ranging from 11,300 to 11,500, which shows Nifty would face resistance in the sub-11,350 zone. 11,200 might act as support as maximum put OI stands here. We can witness short-covering move along with addition of fresh position only if Nifty breaches level of 11,350. Therefore, traders should try to create long position, keeping close eye on 11,200. READ MORE
FII/FPI & DII trading activity on NSE, BSE and MSEI
Oil edges lower after jump on US stocks draw
>> Crude oil prices eased slightly on Thursday but held most of their gains from the previous session after US government data showed a fall in inventories, supporting the view that fuel demand is returning despite the coronavirus pandemic.
>> Brent crude was down 8 cents at $45.35 a barrel, after a gain of around 2% in the previous session. West Texas Intermediate oil was down by 6 cents at $42.61 a barrel after gaining 2.6% on Wednesday
SGX Nifty update
>> At 8:18 am, the index was at 11,322.5 level, up 13.5 points or 0.10 per cent.
Asian stocks set to track Wall Street's defiant rally
S&P 500 finishes within points of record high close
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