Sensex surges 548 points amid broad-based buying; Nifty ends above 10,900

Topics Markets | Coronavirus | ICRA

Photo: Kamlesh Pednekar
The Indian stock market ended 1.5 per cent higher on Friday, led by buying in Reliance Industries (RIL), HDFC Bank, ICICI Bank, and HUL. 

The S&P BSE Sensex settled 548 points or 1.5 per cent higher at 37,020 levels. Of 30 constituents, 25 advanced and the rest five declined. ONGC (up 5.5 per cent) ended as the biggest gainer on the index while TCS (down around 1.5 per cent) was the biggest loser. NSE's Nifty advanced 162 points or 1.5 per cent to end at 10,902. Meanwhile, the volatility index, India VIX, slipped 5.4 per cent to 23.99 levels. 

On a weekly basis, Sensex gained 1.16 per cent while Nifty added 1.24 per cent. 

Sectorally, barring Nifty IT index, all the other indices ended in the positive territory. Nifty PSU Bank index rose 1.83 per cent to 

1,431.60 levels while the Nifty Bank ended 1.7 per cent higher at 21,967 points. Nifty IT, on the other hand, slipped 0.62 per cent to 16,821 levels. 

In the broader market, the S&P BSE MidCap gained 1.55 per cent while the S&P BSE SmallCap rose 1.11 per cent. 

Global markets

Europe’s stock markets were subdued on Friday as EU leaders met in Brussels to try to hammer through a 750 billion euro post-pandemic recovery fund. In Asia, Japan’s Nikkei slid 0.3 per cent on concerns about rising virus infections in Tokyo. China’s CSI300 index climbed 0.25 per cent, though that was after a near 5 per cent slump on Thursday.

In commodities, oil prices slipped amid growing uncertainty about the global recovery in fuel demand as coronavirus cases surged in several countries, while major producers were set to ease output curbs.

(With inputs from Reuters)


MARKET COMMENT:: Vinod Nair, Head of Research at Geojit Financial Services

"Markets gained strength towards the end of the session, led by Financials and Energy stocks. Global markets were lacklustre as an EU summit to discuss a post-pandemic recovery fund is underway. The markets globally are banking on continued liquidity to ensure that the recent momentum seen in the markets does not stall. Indian stocks are seeing earnings specific moves while the ever-present possibility of another lockdown has done little to affect the sentiment". 

SECTOR WATCH:: Nifty IT slips 0.62%

MARKET AT CLOSE:: Gainers and losers on the S&P BSE Sensex


The S&P BSE Sensex rallied 548 points or 1.5 per cent tro end at 37,020 while NSE's Nifty ended at 10,902, up 162 points or 1.5 per cent. 


MARKET CHECK:: Sensex extends gains

Sector View :: Nielsen on consumer sector

- FMCG exbihits signs of rebound in June to Pre-Covid levels
- India seeing delayed recovery
- Consumer is cautious, prefers “contactless” home delivery
- 'Vocal for Local' sentiment is growing

(As reported by CNBC TV18)

Mahindra & Mahindra hits over 5-month high; stock zooms 61% in 3 months

Shares of Mahindra & Mahindra (M&M) hit an over five-month high of Rs 588, up 3 per cent on the BSE on Friday; extending its previous days’ 4 per cent rally on expectation of good June quarter earnings. In the past three months, the stock has outperformed the market by surging 61 per cent, as compared to 16 per cent rise in the S&P BSE Sensex. READ MORE

MARKET CHECK:: BSE IT index slips over 1%

MARKET CHECK :: Sudden rally in markets after a narrow-range trade through the day

Sensex Heatmap :: Index at day's high, up over 400 pts

Nifty IT index trades 1% lower in an otherwise strong market

NEWS ALERT | SC likely to hear AGR case on Monday at 2 pm: TV reports

(rs CR)
VODAFONE IDEA 8.53 8.64 7.42 0.66 8.39 67.90
RELIANCE COMMUNI 2.97 2.97 2.83 0.14 4.95 4.47
BHARTI AIRTEL 567.20 573.80 562.05 4.60 0.82 22.13

MARKET CHECK :: Sensex surges 300 pts

INDEX GAINER:: ONGC up over 5%

Rupee Closing

Rupee settles higher at 75.02 per US dollar vs Thursday's close of 75.19/$

Disruption in retail? Avenue Supermarts has a strong competitor in JioMart

Reliance Industries' announcement related to its retail business, Reliance Retail, which includes its online grocery business JioMart, impacted sentiment towards Avenue Supermarts. In an otherwise bullish market when Sensex was up 1.2 per cent, the stock of Avenue Supermarts, which operates the popular chain of DMart hypermarkets, shed 6.5 per cent on Thursday. READ MORE

RIL, HDFC Bank contribute the most to the S&P BSE Sensex's gain today

HDFC Bank Q1 preview: Moratorium to contain slippages; recovery trends eyed

Analysts would watch out for the management’s commentary on retail asset quality, moratorium trends, and trends in collection efficiency.
“Asset quality trend will likely remain benign due to the moratorium, but ahead of peers. Key monitorable will be trend in book under moratorium,” said analysts at Edelweiss Securities in their result preview report. READ MORE

MARKET CHECK :: Sensex erases gains partially, up 150 pts now

European shares open mixed

Britannia Industries posts 118% jump in Q1FY21 net profit at Rs 543 crore

Britannia Industries on Friday posted a strong set of numbers for the first quarter of the fiscal year 2020-21 (Q1FY21). The company's consolidated net profit jumped 118 per cent year-on-year (YoY) to Rs 542.68 crore as against Rs 248.64 crore in the year-ago period. Sequentially, the numbers grew 45.74 per cent. The company's revenue came in at Rs 3,384.46 crore, up 26.4 per cent against Rs 2,677.32 crore in the corresponding quarter of the previous fiscal. Total income came in at Rs 3,514.35 crore against Rs 2,767.80 crore in June 2019 quarter. READ MORE

JioMart shakes up online grocery picture despite being late to party

The pecking order in the $2-billion online grocery market in India has been shaken up by newcomer JioMart. Based on orders per day, JioMart, the two-month-old e-commerce venture of Reliance Industries (RIL), is ahead of rivals BigBasket and Amazon, numbers shared by these firms and sourced from the industry indicate. READ MORE

Granules India surges 8%, hits new high on strong June quarter results

Shares of Granules India jumped 8 per cent to Rs 265, also its new high, on the BSE on Friday after the company reported a strong set of numbers with Ebitda (earnings before interest, taxes, depreciation and amortization) margin improvement of 503 basis points to 25 per cent in June quarter (Q1FY21). The company’s revenue from operations in Q1FY21 grew by 23.6 per cent year on year (YoY) to Rs 735.6 crore. Ebitda for the quarter grew at 54.8 per cent at Rs 183.60 crore. Profit after tax rose 33.9 per cent YoY at Rs 111.4 crore. READ MORE

June Quarter Result :: Britannia Industries logs consolidated profit of Rs 546 crore

>> Consolidated revenue at Rs 3,421 crore

>> EBITDA at Rs 717 crore

>> EBITDA margin comes in at 21%

BROKERAGE VIEW:: Axis Securities on Infosys

We believe Infy has a resilient business structure from a long term perspective and multiple long term contracts with world’s leading brands. With depreciation in rupee, lower travel cost, lower on site expenses EBITDA margins likely to expand in near term. We recommend a BUY and assign 20x P/E multiple to its FY22E earnings of Rs. 48.5 per share which gives a TP of Rs 940 per share, an upside of 13%.

P-notes investment in capital market climbs to Rs 62,138 cr till June

P-notes are issued by registered foreign portfolio investors (FPIs) to overseas investors, who wish to be part of the Indian stock market without registering themselves directly. They, however, need to go through a due diligence process. READ MORE

Hope rally in diagnostic stocks may fizzle on disruption in OPD services

Investor sentiment towards diagnostics firms has improved in July, adding to gains seen in the April-June period. While recovery in business volumes after the 25-30 per cent hit during the lockdown has helped, the rise in Covid-19 testing by private players will support volumes and revenues. READ MORE

BPCL surges 14% in 2 days as global oil giants show interest in company

Shares of Bharat Petroleum Corporation (BPCL) rose 7 per cent to Rs 421 on the BSE on Friday. The stock has surged 14 per cent in the past two trading days, on reports that global oil giants are showing interest in the state-owned oil marketing company. The counter has seen more-than-doubled trading volumes with a combined around 16 million equity shares changing hands on the BSE and NSE till 11:36 am. READ MORE

June Quarter Result :: Granules India posts consolidated net profit of Rs 111 crore vs Rs 83.2 cr YoY

>> Revenue comes in at Rs 736 cr vs Rs 595 cr YoY

>> EBITDA margin at 25% vs 19.9% YoY

>> EBITDA comes in at Rs 183 cr 

Tata Steel, JSW Steel, SAIL: A few trading strategies for metal stocks

Metal stocks were trading with decent gains on Friday. The Nifty Metal index was ruling over 2 per cent higher at 2,116 levels with all the 15 constituents advancing. Hindustan Copper (up over 7 per cent) was the top gainer on the index, followed by NMDC, MOIL, and Tata Steel - all up in the range of 3.5 to 4.2 per cent. READ MORE

Equity schemes with sizeable cash holdings likely to see limited gains

The market benchmark Sensex has bounced back from the March 23 lows, with gains of over 41 per cent. Till that point, the 30-share index was down 37 per cent in year-to-date terms.
Experts say the downside from higher cash calls might not be seen immediately as markets have remained range-bound. “In the current environment, the market rally has been driven by select stocks,” said Amit Bivalkar, founder and director of Sapient Wealth. READ MORE

Buy calls increase for RIL shares on the back of big-ticket announcements

Elara Capital revised its rating to ‘accumulate’ from ‘buy’ and increased its target price 7 per cent to Rs 1,981. IDBI Capital, too, changed its rating, to ‘buy’ from ‘hold’, and increased target price 17 per cent to Rs 2,154. Motilal Oswal Securities and Centrum Broking have increased target price by around 9 per cent. The RIL stock remained flat at Rs 1,843.10 at the close of trading on Thursday. On Wednesday, the stock fell 3.7 per cent. READ MORE

Q1 earnings of IT firms send out growth feelers

The first-quarter (Q1) earnings of leading information technology (IT) services firms give a clear indication that the worst may be over for the industry, and that growth revival is already underway, albeit at a slower pace.
Despite revenue contraction on a sequential basis, Tata Consultancy Services (TCS), Infosys, and Wipro won many large deals in the April-June quarter — an indication that tier-I firms have benefited from vendor consolidation, said experts. READ MORE

BROKERAGE VIEW:: Centrum Broking on Reliance Industries

RIL chairman Mukesh Ambani (MDA) in the 43rd AGM of the company gave valuable updates on recent business developments and growth roadmap going forward. He emphasized that the 3 pillars for value creation remain the JIO platforms business, the new commerce business as part of RIL retail and the gradual transformation of the OTC business to a new materials/new energy business. Overall, with zero net debt objective having been achieved ahead of time, game changing partnerships with the big three (Facebook, Google and Microsoft) and expectations of similar value unlocking now starting in retail, RIL stands on a strong footing over the next 5-7 years. BUY

BUZZING STOCK:: Hindustan Aeronautics surges 6%

BROKERAGE VIEW:: Edelweiss Securties on Minda Corporation

Minda Corp (MCL) reported adjusted Q4FY20 EBITDA of Rs 485mn broadly in line with estimates. We reckon the insolvency of Minda KTSN (MKTSN) will boost FY21/22E consolidated RoCE by ~3% on average (versus earlier estimates; pending finer details that would emerge in H1 balance sheet). The positive effect on PBT due to the reduction in MKTSN losses would be an average ~35% in FY21E. That said, FY21E EBITDA margins will see a tug of war: an increase in revenue due to spike in wiring harness revenue on the one hand and impact of negative operating leverage and higher import content on the other. Given keen focus on costs, MCL should be able to balance these two in our view. Retain ‘BUY’ with a revised TP of Rs R88 (earlier Rs 81) as we roll over the valuation to March2022E with no major changes to earnings estimates.

L&T Technology Services slips 8% on disappointing June quarter results

Shares of L&T Technology Services (LTTS) slipped 8 per cent to Rs 1,325 in the intra-day trade on the BSE on Friday on profit booking after the company reported a disappointing set of June quarter (Q1FY21) numbers. In the past three weeks, the stock of L&T group company had rallied 14 per cent, as compared to a 4.7 per cent rise in the S&P BSE Sensex. READ MORE

Cyient zooms 9% on better-than-expected Q1 performance, positive outlook

On a year-on-year (YoY) basis though, the Hyderabad-based company's net profit declined 10 per cent from Rs 90.5 crore reported in the year-ago period while revenue decreased 8.9 per cent from Rs 1,089 crore in Q1FY20. Sequentially, revenues slipped 7.6 per cent to Rs 991.7 crore. READ MORE

MARKET CHECK:: Top 5 gainers on the BSE at this hour

Reliance Jio's 2G-free India drive likely to hit Vodafone Idea hard

After racking up 100 million users for its 4G-enabled feature phones (JioPhone), Reliance Jio in partnership with Google is eyeing the entry-level smartphone segment. Jio is planning to win over 350 million 2G feature phone users by launching a smartphone ‘at a fraction of the current cost’. READ MORE

HCL Tech gains over 2% post Q1 result; Shiv Nadar steps down as Chairman

Revenue for the quarter came in at Rs 17,841 crore, up 8.6 per cent against Rs 16,425 crore in the corresponding quarter of the previous fiscal.
The company's earnings before interest and tax (EBIT) surged 30.4 per cent to Rs 3,660 crore, as against Rs 2,806 crore in the year-ago period. READ MORE

SBI Cards trades higher for second straight day, nears record high

The stock hit a four-month high today, on the back of a 27 per cent in the past one month. In comparison, the S&P BSE Sensex was up 9 per cent during the period. A combined 1.4 million equity shares had changed hands on the counter on the NSE and BSE till the time of writing of this report. READ MORE

Rupee opening

Rupee opens lower at 75.25/$ vs Thursday's close of 75.19 against the US dollar

BUZZING STOCK:: Tata Steel gains 4% in early deals

Most active stocks by volume

S A I L 36.30 5.07
L&T FIN.HOLDINGS 61.25 2.42
B H E L 37.40 1.22
» More on Most Active Volume

Britannia Q1 preview: Revenue may rise up to 22% on strong volume growth

Fast-moving consumer goods (FMCG) major Britannia Industries is slated to announce its first quarter results of the fiscal year 2020-21 (Q1FY21) on Friday, July 17. While most consumer goods companies are estimated to post muted numbers due to supply and demand disruptions led by Covid-19-triggered lockdown, Britannia, as per analysts, is expected to buck the trend and deliver a strong performance. This is because the company comes under the 'Consumer Staples' segment which was least affected during the lockdown period and also there was a huge surge in in-house consumption trends. READ MORE

NEWS ALERT :: Zydus Cadila receives approval from COFEPRIS to conduct clinical trials with its biological therapy ‘PegiHepTM’.

>> Zydus Cadila, today announced that it had received approval from the Mexican regulatory authority COFEPRIS to conduct clinical trials with its biological therapy, Pegylated Interferon alpha-2b, ‘PegiHepTM

>> This will be an open-label, randomized, comparator controlled study of Pegylated IFN alfa-2b to evaluate safety, efficacy and tolerability in patients with Covid-19.

>> Zydus had earlier approached the DCGI to investigate the role of Pegylated Interferon alpha-2b for Covid-19 and the clinical trials are now underway.

>> The Company is also working with USFDA to open an Investigational New Drug (IND) application for Pegylated Interferon alpha-2b. 

(Source: BSE filing)

Nifty Metal Index gains over 2%; Hindustan Copper, SAIL top gainers

NEWS ALERT :: Shiv Nadar steps down as HCL Tech's chairman, will remain MD

>> The Board of Directors has appointed Ms. Roshni Nadar Malhotra, Non-Executive Director as the Chairperson of the Board of Directors and the Company w.e.f. July 17, 2020, in place of Mr. Shiv Nadar who expressed his desire to step down from the position of the Chairman. Mr. Shiv Nadar would continue to be the Managing Director of the Company with the designation as the Chief Strategy Officer of the Company.

(Source: BSE filing)

PTC India mulls stale sale in finance-arm; stock up over 3%

SAIL jumps 5% post exit from F&O ban

Tata Group stocks trade higher ahead of Board meeting today

(rs CR)
TATA POWER CO. 47.40 47.80 47.25 0.75 1.61 0.56
TATA MOTORS 104.20 105.15 103.30 1.20 1.17 0.93
TATA STEEL 350.40 351.65 345.15 8.65 2.53 2.27
TATA STEEL BSL 21.70 21.70 21.20 0.55 2.60 0.05

Reliance Industries up around 1%

HCL Technologies trades lower

Sectoral trends on NSE at Open

Sensex Heatmap :: Financials lead; profit-booking at IT counters

Opening Bell

Opening Bell

HCL Technologies up 1% in pre-open

Markets at Pre-open

Markets at Pre-open

June Quarter Result :: HCL Tech logs net profit of Rs 2,925 crore

>> Revenue comes in at Rs 17,841 crore

>> Dollar revenue comes at $235.6 cr

>> Gives revenue guidance for Q2 as 1.5-2.5% in constant currency terms

>> Expect operating margin to be between 19.5% and 20.5% in FY21

NEWS ALERT :: Tata Sons board may discuss fund infusion into group cos today, reports CNBC TV18

>> Tata Sons board may discuss fund infusion into group cos today

>> Board may also discuss Tata Power InVIT and debt reduction plans

>> Board may assess progress on talsk with UK govt w.r.t JLR unit

NEWS ALERT :: RBI re-appoints Shyam Srinivasan as MD & CEO of Federal Bank

>> Tenure extended till Sept 22, 2021

Bulk deals on BSE as on Thursday

Bulk deals on NSE as on Thursday

FII/FPI & DII trading activity on NSE, BSE and MSEI

Rupee check

Source: Bloomberg

Oil prices steady as clouds gather over fuel demand, looser supply curbs

>> Oil prices were unchanged on Friday, with trading marked by growing uncertainty about global recovery in fuel demand as new COVID-19 cases surge in several countries just as major producers get set to loosen production curbs.
>> US West Texas Intermediate (WTI) crude futures rose 1 cent to $40.76 a barrel, while Brent crude futures were steady at $43.37 a barrel. Both were still on track to end the week up slightly.

(Source: Reuters)


SGX Nifty points at positive start for markets

>> At 8:32 am, the index was at 10,774.80 level, up 76.85 points or 0.72 per cent.

Asian markets trade mixed after US market dip

Source: Reuters

Wall Street ends lower on COVID-19 worries, tech weighs

Source: Reuters

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