Sensex rises for 4th day, ends 225 pts higher; financial, metal stocks gain

Topics Markets | IndiGo | Titan Company

NSE's Nifty ended at 11,322.50, up 52 points or 0.46 per cent.
Extending its gaining streak into the fourth session in a row, the benchmark S&P BSE Sensex ended 0.6 per cent, or 225 points higher at 38,407.01 levels on Tuesday, led by buying in financial counters. Further, positive global cues and Prime Minister Narendra Modi's statement that the number of active Covid-19 cases has come down also boosted investor sentiment. READ MORE

NSE's Nifty gained for the fifth straight day to settle at 11,322.50, up 52 points or 0.46 per cent. India VIX declined 5.57 per cent to 21.25 levels. 

Private sector lender Axis Bank (up 4 per cent) ended as the top gainer on the Sensex while Titan Company emerged as the biggest loser (down nearly 4 per cent) after reporting weak set of numbers for the quarter ended June 2020. 

In the broader market, the S&P BSE MidCap index ended at 14,392 levels, down 0.2 per cent while the S&P BSE SmallCap index fell 0.23 per cent to settle at 13,837. 

Among sectoral indices on the NSE, Nifty Bank rallied 1.5 per cent to 22,227.20 and Nifty Metal advanced 1.66 per cent to 2,370.65.

Global markets

World stocks inched to 5-1/2 month highs on Tuesday, lifted by bets a US fiscal stimulus package will be reached and by signs Sino-US tensions have eased ahead of a crucial round of trade talks. 

MSCI’s global equity index rose 0.4 per cent while a benchmark of Asian shares outside Japan gained nearly 1 per cent. Japan’s Nikkei climbed 1.9 per cent.

In commodities, oil prices rose. Brent crude added 29 cents, or 0.6 per cent, to $45.28 a barrel while West Texas Intermediate US crude rose 38 cents, or 0.9 per cent, to $42.32 a barrel at the time of writing of this report. 

Gold prices fell more than 1 per cent, breaking below the $2,000 level for the first time in a week, as the dollar’s relative value against other currencies strengthened and spurred investors to lock in profits following a record run.

(With inputs from Reuters)

4:06 PM IST "Indian markets continued their positive run, in spite of intraday volatility and unabated virus infections across the country. It was in sync with positive global cues, on the back of expected stimulus measures from the US, improving economic data points from China, and the first coronavirus vaccine getting registered in Russia. Indian markets continued their run on the basis of earnings results and stock-specific news, amidst hopes of another round of stimulus measures by the government. This expectation should ensure liquidity in the markets in the near term."

3:44 PM IST

3:42 PM IST

3:35 PM IST The S&P BSE Sensex rallied 225 points or 0.59 per cent to end at 38,407 while NSE's Nifty settled at 11,322.50, up 52 points or 0.46 per cent. 

3:22 PM IST

3:17 PM IST Titan continues to have a comfortable liquidity position due to adequate banking limits and the ability to issue commercial paper at attractive rates. As on June 30, the company is net cash surplus largely owing to the sale of excess inventory in the form of gold. Titan remains a quality franchise with strong brand patronage. Over the years, the company has consistently exhibited its ability to gain market share amid a tough industry scenario (gained market share in June & July). The robust balance sheet and asset-light distribution model have enabled Titan to outperform peers. While near term headwinds may hamper the performance of the company, we continue to remain structurally positive on the company and its long term growth prospects. We maintain HOLD with a revised target price of Rs 1,170 (52.0x FY22E EPS, previous target price: Rs 1,095).

3:07 PM IST

2:50 PM IST

2:49 PM IST RATING: BUY | TARGET PRICE: Rs 131 DCB Bank’s earnings were mixed; with NII missing estimates led by weak loan growth and softer NIM (due to excess liquidity) while treasury gains and lower opex (which offset fee income decline) led to a PPoP beat of 10% to Rs1.9bn. Provisions were slightly higher with COVID-19 related being Rs0.32bn. Overall additional provisions (COVID-19 + standard asset + floating) are ~4% of the moratorium which reduced to 26% of loans as of July’20 (vs 60% in Apr’20). Collection efficiency in LAP/HL/CV is improving (over Apr-Jul’20 ~9% higher). The resolution scheme announced may not be utilised for DCB customers except in the case of corporate consortium loans. Tier-1 is healthy at ~14%. See RoA/RoE improve over FY21-22E by 32bps/3.5% to 1.1%/12.5%. Maintain multiple at 1.2x FY22ABV and TP at Rs 131. BUY

2:39 PM IST

2:24 PM IST (As reported by AFP)

LIVE UPDATES

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

"Indian markets continued their positive run, in spite of intraday volatility and unabated virus infections across the country. It was in sync with positive global cues, on the back of expected stimulus measures from the US, improving economic data points from China, and the first coronavirus vaccine getting registered in Russia. Indian markets continued their run on the basis of earnings results and stock-specific news, amidst hopes of another round of stimulus measures by the government. This expectation should ensure liquidity in the markets in the near term."

SECTOR WATCH:: Nifty Metal index rallies 1.66%


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


CLOSING BELL

The S&P BSE Sensex rallied 225 points or 0.59 per cent to end at 38,407 while NSE's Nifty settled at 11,322.50, up 52 points or 0.46 per cent. 

BUZZING STOCK:: Emami continues to soar; advances 9% in today's session


BROKERAGE VIEW:: ICICI Securities on Titan Company

Titan continues to have a comfortable liquidity position due to adequate banking limits and the ability to issue commercial paper at attractive rates. As on June 30, the company is net cash surplus largely owing to the sale of excess inventory in the form of gold. Titan remains a quality franchise with strong brand patronage. Over the years, the company has consistently exhibited its ability to gain market share amid a tough industry scenario (gained market share in June & July). The robust balance sheet and asset-light distribution model have enabled Titan to outperform peers. While near term headwinds may hamper the performance of the company, we continue to remain structurally positive on the company and its long term growth prospects. We maintain HOLD with a revised target price of Rs 1,170 (52.0x FY22E EPS, previous target price: Rs 1,095).

MARKET CHECK


Nifty Pharma index trades lower in an otherwise firm market


BROKERAGE VIEW:: Centrum Broking on DCB Bank

RATING: BUY | TARGET PRICE: Rs 131

DCB Bank’s earnings were mixed; with NII missing estimates led by weak loan growth and softer NIM (due to excess liquidity) while treasury gains and lower opex (which offset fee income decline) led to a PPoP beat of 10% to Rs1.9bn. Provisions were slightly higher with COVID-19 related being Rs0.32bn. Overall additional provisions (COVID-19 + standard asset + floating) are ~4% of the moratorium which reduced to 26% of loans as of July’20 (vs 60% in Apr’20). Collection efficiency in LAP/HL/CV is improving (over Apr-Jul’20 ~9% higher). The resolution scheme announced may not be utilised for DCB customers except in the case of corporate consortium loans. Tier-1 is healthy at ~14%. See RoA/RoE improve over FY21-22E by 32bps/3.5% to 1.1%/12.5%. Maintain multiple at 1.2x FY22ABV and TP at Rs 131. BUY

RIL, HDFC twins contribute the most to Sensex's gain today


NEWS ALERT :: Russia has developed 'first' coronavirus vaccine: Putin

(As reported by AFP)

MARKET CHECK:: BSE Energy index gains over 1.5%


Rupee Closing

Rupee ends higher at 74.77 per US dollar vs Monday's close of 74.89/$

SECTOR WATCH:: Telecom stocks decline in an otherwise firm market

COMPANY LATEST(rs) CHG(%)
VODAFONE IDEA 8.74 -3.85
BHARTI AIRTEL 555.00 -0.60
TATA COMM 848.00 -0.59
» More

BROKERAGE VIEW:: ICICI Securities on Lemon Tree Hotels

The outlook would remain challenging with recoveries not expected before FY22E. LTH’s management expects the ongoing crisis to lead to 15-20% of room inventory getting wiped out, auguring well for the company in the long run. However, near term challenges w.r.t. weak industry dynamics, high D/E, and expected equity dilution compel us to maintain HOLD rating with revised target price Rs 26/share (SOTP based valuation).

BUZZING STOCK:: Shalby gains over 8%


European indices start strong


Axis Bank raises Rs 10,000 cr via allotment of equity shares to QIBs

Private sector lender Axis Bank on Tuesday said it has raised Rs 10,000 crore through allotment of equity shares to qualified institutional buyers (QIB). Last week, Axis Bank had set a floor price of Rs 442.19 per equity share for its proposed Rs 15,000-crore qualified institutional placement (QIP). READ MORE 


MARKET UPDATE:: Sensex regains momentum


ALERT :: Dow Jones Futures climb 170 pts


Opinion | Why is everyone buying gold?

It’s tempting to attribute the vogue for gold to a desire for a safe haven during the pandemic — a kind of financial panic reflex that will release as the crisis abates. But the gold mania is also driven by a hunch that the easy money pouring out of central banks and government stimulus programmes could trigger inflation, which makes it a more worrisome economic omen. READ MORE 


Import curbs on 101 defence items open big avenue for L&T, Bharat Forge

The government’s policy announcement on the defence sector putting curbs on imports, providing clarity on timelines, and strengthening its “Make in India” initiative bode well for all domestic defence sector suppliers. Government-owned defence undertakings, such as Bharat Electronics (BEL), Hindustan Aeronautics (HAL), Bharat Dynamics, and Cochin Shipyards have already been in the spotlight against the India-China stand-off. READ MORE

JSW Steel production rises 9% in July at 1.2 million tonnes

The production of long rolled products increased by 46 per cent to 2.4 lakh tonnes in July from 1.65 lakh tonnes in June while the production of flat-rolled products totalled 9.4 lakh tonnes, up 17 per cent from 8.04 lakh tonnes. In July last year, the production of flat-rolled products was 9.08 lakh tonnes and the production of long rolled products was 3.16 lakh tonnes. READ MORE
 

Top gainers on BSE at this hour

COMPANY PRICE(rs) CHG(%)
NESCO 513.15 14.11
GARWARE TECH. 1945.00 12.67
VAIBHAV GLOBAL 1876.65 10.88
GE T&D INDIA 98.00 9.99
LEMON TREE HOTEL 26.70 9.88
» More on Top Gainers

June Quarter Result :: Motherson Sumi Systems

>> Consolidated net loss at Rs 810.5 crore

>> Revenue at Rs 8,503.9 crore

>> EBITDA loss at Rs 630 crore


All but two PMS schemes post gains in July, but most underperform Nifty

The large-cap PMS category gained 5.5 per cent in July, underperforming the Nifty, while the mid-cap category returned 6.3 per cent, higher than Nifty MidCap 100’s 5.2 per cent.
 
The small-cap and multi-cap PMS categories surged 7.2 per cent and 6 per cent, respectively, underperforming Nifty SmallCap 100 (8.5 per cent) and Nifty500 (6.6 per cent). READ MORE

Import curbs on 101 defence items open big avenue for L&T, Bharat Forge

The government’s policy announcement on the defence sector putting curbs on imports, providing clarity on timelines, and strengthening its “Make in India” initiative bode well for all domestic defence sector suppliers. Government-owned defence undertakings, such as Bharat Electronics (BEL), Hindustan Aeronautics (HAL), Bharat Dynamics, and Cochin Shipyards have already been in the spotlight against the India-China stand-off. READ MORE

BROKERAGE VIEW:: Centrum Broking on UltraTech Cement

UltraTech Cement’s presence in five regions across the country helps it to balance realisation gains without volume loss. Though cost savings are commendable in 1Q we await sustainability. UTCEM’s focus on balance sheet health will only improve as the acquired assets consolidate. We have maintained our earnings estimates at Rs103.9/Rs140.8 and continue to value UTCEM at the replacement cost of Rs11.2bn/mn tonne. We maintain our ADD rating with a price target of Rs 4,106/sh, at our target price the stock trades at 12.5x EV/EBITDA FY22e earnings.

BROKERAGE VIEW:: Prabhudas Lilladher on Shree Cement

Rating: REDUCE | CMP: Rs 22,396 | TP: Rs 19,100

Shree Cement reported Q1FY21 earnings marginally below our expectations due to higher costs. The company depicted strong maturity over the last one and a half years with tight discipline on volumes and prices in its North market. This is reflected in the highest ever margins since FY09. However, we believe that margins have peaked-out as we see stiff competition from new capacities, weak demand outlook, and increased likelihood of leakage on volumes coupled with the widening gap between A and C category brands. Peaked out margins, slowing growth and stretched valuations (EV/EBITDA of 19.5x and P/E of 38.7x FY22E) presents a strong rationale for meaningful downside in the stock. Due to expensive valuations and restricted earnings growth, we downgrade the stock to Reduce with TP of Rs 19,100, EV/EBITDA of 16x FY22e.

BROKERAGE VIEW:: YES Securities on Concor

RATING: ADD | TARGET PRICE: Rs 419

We expect revenues to be under pressure in FY21 with subdued volumes and increasing competition. Also, the margin is likely to be under pressure with higher scheduled payment towards LLF. With the normalisation of the current scenario and improved volumes, we expect revenue and margin pressure to improve in FY22E. While we largely maintain our topline estimates, we expect the margin to come under pressure with subdued volumes and increasing competition. While we have not considered the increased LLF demand into our forecasts, the high uncertainty regarding the outcome would be an overhang on the stock. Considering the uncertainty regarding LLF, we downgrade our rating from BUY to ADD with a 12m TP of Rs 419 (22x FY22E PE multiple).

BROKERAGE VIEW:: ICICI Securities on Entertainment Network India

The radio sector remains the worst-hit media segment with FY20 being a washout due to macroeconomic headwinds and Covid-19 affecting FY21E earnings. Gross margins growth of solutions business is a relief for ENIL in challenging times. We would monitor the traction and consistency in the same before turning constructive. The company has cash & cash equivalents of ~ Rs 236 crore, which assures liquidity. Larger players in the industry will benefit in case of consolidation. However, recovery in radio ad growth is key for the overall rerating of the stock. We believe full ad recovery is still a couple of quarters away. Hence, we maintain our HOLD rating on the stock with a revised target price of Rs 145 (implying ~4x FY22E EV/EBITDA).

BROKERAGE VIEW:: Edelweiss Securities on Amber Enterprises

We downgrade Amber Enterprises (Amber) to ‘HOLD’ as ~40% return post our recent TP upgrade (June 2020) limits upside potential. Even as Q1FY21 was a washout (largely expected), investor focus is largely on the sweetening of Amber’s structural story: i) government’s aggressive import substitution push (Rs 90bn opportunity in RAC as of FY19); ii) likelihood of production incentives; and iii) the China +1 opportunity (high exports traction). Amber’s performance in component subsidiaries has been far more encouraging. Tracking this, we revise up FY22E revenue/PAT 5%/14%. We retain our target PE of 24x FY22E (20% discount to CD valuations given lower return/CF profile) and view production invective scheme and export opportunities as upside risks. Our revised TP stands at Rs1,680 (Rs 1,480 earlier).

BROKERAGE VIEW:: Anand Rathi Shares on JK Lakshmi Cement

The lockdown hit JK Lakshmi’s Q1 performance. Its revenue/ EBITDA/PAT fell 21%/15.6%/36%. Management’s focus on de-levering continues; it is keeping on hold its expansion in the North. The East and West continue to suffer from cities being locked down; pockets in the North are also locked down. The migrant labour issue resolution, firm prices, rising institutional demand, fixed-cost savings, and the 10MW WHRS at Sirohi will help its performance. We retain our Buy call, with a Rs 370 target (Rs 325 earlier).

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


Mid, small-caps likely to outperform large-caps in 2020, say analysts

After a subdued performance since the last two years, mid-and-small caps seem to be getting their mojo back with both these indices outperforming their large-cap peer. From their March 2020 low, the S&P BSE Mid-cap and S&P BSE Small-cap indices have surged 57 per cent and 49 per cent, respectively as compared to 47 per cent rise in the S&P BSE Sensex. READ MORE

Shree Cement dips 4% post June quarter results; here's what brokerages say

Shares of Shree Cement slipped 4.70 per cent to Rs 21,335.40 on the BSE after the company's consolidated net profit dropped 13.5 per cent on a year-on-year (YoY) basis to Rs 330.35 crore for the June quarter of FY21 (Q1FY21). In comparison, the company had posted a profit of Rs 382 crore in the year-ago quarter. The company’s revenue dipped 24 per cent YoY to Rs 2,480 crore from Rs 3,302 crore in Q1FY20. READ MORE

Global market capitalisation exceeds world GDP, evoking 'bubble' concern

The market value of the world's equities has risen above the dollar value of the global economy, which some investors say is a sign of overheated markets.
 
Total stock market capitalisation reached $87.83 trillion on Sunday, compared with the 2019 gross domestic product of all countries, at $87.75 trillion. READ MORE

Triveni Engineering leaps 15.5% on strong Q1 results, buyback proposal

"The Board approved the buyback of fully paid up equity shares of face value of Re 1 each, not exceeding 61,90,000 equity shares, representing 2.5 per cent of the total paid-up equity share capital of the Company as on March 31, 2020, at a price of Rs 105 per equity share payable in cash for an aggregate amount not exceeding Rs 64,99,50,000," the company said in a exchange filing.  READ MORE

Investors need to be wary of overpaying as stock returns are mediocre

Retail investors need to be wary of overpaying for picks in such an environment. One reason is that the economy has not done well for the past four-five years and Nifty earnings have barely moved. READ MORE

KEC International in focus; shares gain 8% after June quarter result

KEC International shares surged nearly 8 per cent on the BSE on Tuesday after the company, in its June quarter result announcement, said it was confident of delivering a good performance in the financial year 2020-21 (FY21). For the first quarter of the fiscal year 2020-21 (Q1FY21), the company reported an 8.4 per cent year-on-year (YoY) drop in its revenue at Rs 2,207 crore against Rs 2,412 crore in Q1FY20. READ MORE 


ICICI Bank shares gain 3% after setting floor price for QIP issue

Shares of ICICI Bank gained as much as 3 per cent to Rs 374.15 on the BSE on Tuesday after the private lender launched its qualified institutional placement (QIP), setting the floor price at Rs 351.36 per share. The bank plans to raise up to Rs 15,000 crore to support business growth and create a buffer to absorb any shock from the economic disruption caused by the coronavirus pandemic. Its board will meet on August 14 to decide the QIP issue price. The floor price is a 3.4 per cent discount to Monday's closing of Rs 364.20.. READ MORE

Bank of Baroda slips 3% on surprise June quarter loss of Rs 864 crore

The profit was hit by provisions and contingencies, which rose by 71.32 per cent to Rs 5,628 crore in Q1FY21 from Rs 3,285 crore in Q1FY20. "BoB made a provision of Rs 1,900 crore for standard assets. Of this, half was for a loan which carries government guarantees and balance for loans under moratorium," said its managing director (MD) and chief executive officer (CEO) Sanjiv Chadha said. READ MORE

Rupee opening

Rupee opens higher at 74.83/$ vs Monday's close of 74.89 against the US dollar

Titan Company slips nearly 4% on weak Q1 result; should you buy the stock?

Prabhudas Lilladher notes that the company has achieved a recovery rate of 77 per cent /21 per cent /25 per cent for jewelry/watches/eyewear, and it expects a sustained recovery to set in from fag end of 3Q/4Q. "Titan's long term structural story remains intact on account of market share gains, strong balance sheet, franchisee based model, strong brand, and a strong head start in executing strategies like customer safety and Omni Channel across product segments," it said in a result review report. READ MORE 


SECTOR WATCH:: Metal stocks shine


Most active stocks by volume

COMPANY PRICE(rs) CHG(%)
VODAFONE IDEA 8.85 -2.64
TECH MAHINDRA 689.90 1.25
ICICI BANK 373.75 2.79
TATA MOTORS 124.50 0.57
ST BK OF INDIA 195.55 0.90
» More on Most Active Volume

Triveni Engg jumps over 7%

>> Net profit rose 150.23 per cent to Rs 80.40 crore in the quarter ended June 2020 as against Rs 32.13 crore during the previous quarter ended June 2019. Besides, the Board also approved share buyback proposal


Hexaware Tech trades mildly lower

>> The IT company has received approval from a majority of its shareholders to delist from the exchanges.


CSB Bank up 1%

>> Madhavan Aravamuthan was on Monday appointed the new chairman of Fairfax-backed CSB Bank. He is an independent director of the bank since December 13, 2018.


InterGlobe Aviation trades in the green on fund raising plan


Power Grid Corp adds nearly 2%

>> The company on Monday posted an over 18 per cent fall in its consolidated net profit to Rs 2,048.42 crore for the June 2020 quarter.


Bank of Baroda declines on surprise Q1 loss

>> Bank of Baroda (BoB) posted a pre-tax loss of Rs 1,308 crore in the quarter ended June 2020 (Q1FY21) due to rise in provisions for standard assets, including those under moratorium and government-guaranteed loans. It had recorded profit before tax (PBT) of Rs 991 crore in Q1FY20.


Titan Co slips over 3% post Q1 nos

>> With major part of the quarter being a complete washout because of the lockdown and disruptions caused by the Covid-19 pandemic, Titan on Monday posted a pre-tax loss of Rs 335 crore for Q1 of FY21. It had reported a profit before tax (PBT) of Rs 523 crore in the corresponding quarter of the previous financial year.


ICICI Bank gains on QIP launch

>> Private lender ICICI Bank on Monday launched its qualified institutional placement (QIP), setting the floor price at Rs 351.36 per share. The bank plans to raise up to Rs 15,000 crore to support business growth and create a buffer to absorb any shock from the economic disruption caused by the coronavirus pandemic.

Sectoral trends on NSE at Open


Sensex Heatmap at Open


Opening Bell


Opening Bell


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

ICICI Bank: Private lender ICICI Bank on Monday launched its qualified institutional placement (QIP), setting the floor price at Rs 351.36 per share. The bank plans to raise up to Rs 15,000 crore to support business growth and create a buffer to absorb any shock from the economic disruption caused by the coronavirus pandemic.
 
Bank of Baroda: Bank of Baroda (BoB) posted a pre-tax loss of Rs 1,308 crore in the quarter ended June 2020 (Q1FY21) due to rise in provisions for standard assets, including those under moratorium and government-guaranteed loans. It had recorded profit before tax (PBT) of Rs 991 crore in Q1FY20.
 
Power Grid: The company on Monday posted an over 18 per cent fall in its consolidated net profit to Rs 2,048.42 crore for the June 2020 quarter. READ MORE 


BROKERAGE VIEW :: Jefferies on Power Grid

Maintains 'Hold', Target price: Rs 160

>> Co's profit in line with estimates

>> Co reports one-time rebate of Rs 1075 crore

>> Concerns remain around weak growth outlook 

BROKERAGE VIEW :: Nomura on Bank of Baroda

Maintains 'Neutral', Target price: Rs 50

>> RoE to remain sub-par for long at 1%/5% for FY22/23

>> Expect FY21/22 credit costs to be 270/250 bps

>>  Dilution risk remains high with weak capital position

BROKERAGE VIEW :: Citi on Bank of Baroda

Maintains 'Buy', Target price: Rs 65

>> Moratorium declines to 21%

>> Lower FY21e/22e PAT estimate by 30%/ over 4%adjusting for Q1 miss and lower margin

BROKERAGE VIEW :: Motilal Oswal Financial Services on Lemon Tree Hotels

CMP: Rs 24 | TP: Rs 33 (+36%) | Reco: Buy

>> Lemon Tree Hotels’ (LEMONTRE) cost saving initiatives have aided in achieving positive EBITDA (higher than est.). This is commendable in our view, especially at a time when hotel players have either reported or are likely to post EBITDA loss (for players yet to announce results).

>> Although EBITDA was above our estimates, we have maintained our FY21/22E estimates as 1QFY21 is not expected to contribute materially to FY21 EBITDA. We have a Buy rating on the stock with TP of INR33.

BROKERAGE VIEW :: Motilal Oswal Financial Services on Mahanagar Gas

CMP: Rs 968 | TP: Rs 1,200 (+24%) | Reco: Buy

>> Mahanagar Gas (MAHGL)’s 1QFY21 EBITDA was marginally above est., led by better volumes; however, EBITDA/scm came in below estimates.

>> Total sales improved to ~65% of normal levels in Aug’20 v/s 55% in Jul’20 and 25% in Apr’20. These are estimated to rise further with an increase in vehicle movement and the opening up of malls and other commercial and industrial units.

>> Cab aggregators are currently operating at ~40% of normal levels, and ~50% of auto rickshaws are back on the road, plying passengers.

>> BEST has inducted ~300 CNG buses to date of its total plan of adding ~500 buses and expects another ~150 CNG buses to be added by the end of Oct’20. BEST is also likely to add another 800–1,000 CNG buses over and above the current ongoing induction of 500 buses.

>> While lockdown has affected demand, CGDs are likely to compensate for the volume loss from lower APM and spot prices. We maintain Buy on MAHGL considering its attractive valuations, and value it in line with global peers at 16x FY22E EPS to arrive at TP of INR1,200

BROKERAGE VIEW :: Motilal Oswal Financial Services on Titan Company

CMP: Rs 1,108 | TP: Rs 1,300 (+17% ) | Reco: Buy

>> Titan’s (TTAN) 1QFY21 results were broadly in line with estimates. Gold volumes declined by 81% during the quarter. However, decent recovery was seen in Jun’20 with Tanishq’s like-to-like growth declining 18% YoY. The recovery prospects in the jewelry segment (over 80% of sales) appear brighter with good demand in Jul’20 (101% of sales in Jul’19, albeit aided by weak base and significant activation in Jul’20) and first week of Aug’20 as well.

>> However, recovery in watches/eyewear is tracking slower than jewelry. Another impact of ineffective hedges on margins in 2QFY21 as well is expected. However, we believe there is a possibility that recovery in the jewelry business may take place in 3QFY21, instead of 4QFY21 as guided by management. However, given the volatile demand and COVID environment, we prefer to be conservative and are assuming recovery in 4QFY21.

Bulk deals on NSE as on Monday

Bulk deals on BSE as on Monday

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


Rupee check

Source: Bloomberg


Oil firms on US stimulus hopes, Asian demand recovery

>> Crude oil gained more ground on Tuesday, with prices underpinned by expectations of US stimulus and a rebound in Asian demand as economies reopen.

>> Brent crude added 7 cents, or 0.2%, to $45.06 a barrel. West Texas Intermediate U.S. crude rose 14 cents, or 0.3%, to $42.08 a barrel.

(Source: Reuters)

SGX Nifty update

>> At 8:20 am, the index was at 11,364 level, up 70 points or 0.62%

Asia shares climb

>> South Korea's Kospi and Japan's Nikkei were ruling 1.13 per cent and 1.41 per cent higher, respectively in early deals today

S&P 500 ends up slightly, tech-related shares underperform value

>> The Dow Jones Industrial Average rose 357.96 points, or 1.3%, to 27,791.44, the S&P 500 gained 9.19 points, or 0.27%, to 3,360.47 and the Nasdaq Composite dropped 42.63 points, or 0.39%, to 10,968.36 during Monday's overnight session.

>> The Dow jumped 1%, the S&P 500 inched up and the Nasdaq closed lower on Monday as investors extended a rotation into value stocks from heavyweight tech-related names while awaiting news on progress in a U.S. fiscal support bill.
 
Source: Reuters

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