MARKET WRAP: Sensex up 420 pts as Infosys rallies 10%, Nifty ends at 10,740

Topics Markets | Coronavirus | Infosys

Brokers trade at their computer terminals at a stock brokerage firm in Mumbai
Benchmark indices ended Thursday's volatile session on a positive territory, led by a rally in Infosys and select financial counters. 

The S&P BSE Sensex ended 420 points or over 1 per cent higher at 36,471.68 levels. Of 30 constituents, 19 ended in the green and rest 11 in the red. Infosys (up 9.5 per cent) ended as the biggest gainer on the index after the company posted better-than-expected numbers for the June quarter of the fiscal year 2020-21 (Q1FY21). The stock was also the major contributor to the Sensex's gains.

NSE's Nifty ended at 10,740, up 122 points, or over 1 per cent.

The trend among Nifty sectoral indices was positive. Barring Nifty Media, all the other indices advanced. Nifty IT ended as the biggest gainer - up over 2.8 per cent to 16,926 levels. 

In the broader market, the S&P BSE MidCap index ended 0.71 per cent higher and the SmallCap index ended flat with the negative bias.

Global markets

Emerging market stocks fell to a one-week low on Thursday as tensions between the United States and China and rising coronavirus cases around the world weighed on investor sentiment, while a stronger dollar hit risky currencies. 

A broad dispute between Washington and Beijing over the control of advanced technologies and the protection of civil liberties in Hong Kong continued to hit risk appetite.

The MSCI’s index for developing world stocks dropped 1.6 per cent, after rising in the previous session. 

In commodities, oil prices fell after OPEC and other producers including Russia agreed to ease record supply curbs from August, though the drop was cushioned by tightening global inventories as economic activity picks up.

(With inputs from Reuters)

4:03 PM IST "In spite of negative global cues, Indian benchmark indices gained strength as the day went on, powered by the IT index and Infosys in particular. Infosys reported better-than-expected numbers and was backed by good deal wins and a decent outlook. Ground realities remained little changed, as the virus infections and geopolitical tensions created uncertainty on the global economic recovery. Investors need to remain stock specific and the earnings results and commentary should be watched out for."

3:45 PM IST

3:43 PM IST

3:36 PM IST The S&P BSE Sensex gained 420 points or 1.16 per cent to settle at 36,472 while NSE's Nifty ended at 10,740, up 122 points or 1.15 per cent. 

3:25 PM IST Shares of Bajaj Consumer Care were locked in the upper circuit band of 20 per cent at Rs 181 on the BSE on Thursday after the company reported a strong operational performance in June quarter (Q1FY21) with EBITDA (earnings before interest, taxes, depreciation, and amortization) margins coming in at 30.42 per cent against brokerages' estimate of around 20.5 per cent. EBITDA margin stood at 30.93 per cent in June 2019 quarter (Q1FY20) and 25.67 per cent in March quarter (Q4FY20). READ MORE 

3:19 PM IST Having cut its key lending rate by an aggressive 115 basis points (bps) in 2020, on top of 135 bps cuts in 2019, the RBI so far has had little success in spurring credit growth amid varying degrees of lockdowns across India.   Some economists and market insiders argue it may be prudent for the MPC, the policy committee, to hold its fire when it meets early next month. READ MORE

3:13 PM IST (Via CNBC TV18)

3:06 PM IST >> Alert: Air Bubble essentially means air routes between two countries. Thues, India may soon start International flights.

3:02 PM IST  >> Session is on Friday, July 17, 2020 at the United Nations in New York. >> This year's address will be through video conferencing

2:55 PM IST The Rs 12,450-crore capital injection in three state-run insurance companies is "credit positive" as their capital had been significantly depleted over the last few years, Moody's Investors Service said on Thursday. Last week the Union Cabinet had decided to put on hold the merger of National Insurance, The Oriental Insurance and United India Insurance and approved a Rs 12,450 crore capital infusion into these three general insurers. READ MORE

2:50 PM IST Shares of BEML are up a good 60 per cent from their March lows. Though there are some near-term concerns on new order flows and project execution in the backdrop of lockdowns, the company's existing order book of close Rs 10,000 crore as on end March 2020 provides good revenue visibility of three and a half years. READ MORE

2:41 PM IST Asian markets fell today as investors worried about the conflict between the world’s two biggest economies but the downside was limited after China reported street-beating expansion in the second quarter. Hong Kong and China Index slipped 2% and 4% respectively. #MOMarketUpdates— Motilal Oswal Financial Services Ltd (@MotilalOswalLtd) July 16, 2020

LIVE UPDATES

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

"In spite of negative global cues, Indian benchmark indices gained strength as the day went on, powered by the IT index and Infosys in particular. Infosys reported better-than-expected numbers and was backed by good deal wins and a decent outlook. Ground realities remained little changed, as the virus infections and geopolitical tensions created uncertainty on the global economic recovery. Investors need to remain stock specific and the earnings results and commentary should be watched out for."

SECTOR WATCH:: Nifty Media ends in the red


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


CLOSING BELL

The S&P BSE Sensex gained 420 points or 1.16 per cent to settle at 36,472 while NSE's Nifty ended at 10,740, up 122 points or 1.15 per cent. 

Bajaj Consumer Care zooms 20% on healthy operational performance in Q1

Shares of Bajaj Consumer Care were locked in the upper circuit band of 20 per cent at Rs 181 on the BSE on Thursday after the company reported a strong operational performance in June quarter (Q1FY21) with EBITDA (earnings before interest, taxes, depreciation, and amortization) margins coming in at 30.42 per cent against brokerages' estimate of around 20.5 per cent. EBITDA margin stood at 30.93 per cent in June 2019 quarter (Q1FY20) and 25.67 per cent in March quarter (Q4FY20). READ MORE 


With inflation in India ticking higher it may be time for RBI to pause

Having cut its key lending rate by an aggressive 115 basis points (bps) in 2020, on top of 135 bps cuts in 2019, the RBI so far has had little success in spurring credit growth amid varying degrees of lockdowns across India.
 
Some economists and market insiders argue it may be prudent for the MPC, the policy committee, to hold its fire when it meets early next month. READ MORE

Large Deals :: 4.4 lakh shares trade in 2 blocks on NSE at Rs 2,005/Sh

(Via CNBC TV18)


NEWS ALERT :: India signs Air Bubble agreement with various countries, says Hardeep Singh Puri

>> Alert: Air Bubble essentially means air routes between two countries. Thues, India may soon start International flights.


NEWS ALERT :: PM Modi to deliver keynote address at this year’s High-Level Segment of UN Economic and Social Council session

 >> Session is on Friday, July 17, 2020 at the United Nations in New York.

>> This year's address will be through video conferencing

Capital infusion in 3 state-owned insurers 'credit positive': Moody's

The Rs 12,450-crore capital injection in three state-run insurance companies is "credit positive" as their capital had been significantly depleted over the last few years, Moody's Investors Service said on Thursday. Last week the Union Cabinet had decided to put on hold the merger of National Insurance, The Oriental Insurance and United India Insurance and approved a Rs 12,450 crore capital infusion into these three general insurers. READ MORE

Strong metro rail order book, indigenisation initiatives bode well for BEML

Shares of BEML are up a good 60 per cent from their March lows. Though there are some near-term concerns on new order flows and project execution in the backdrop of lockdowns, the company's existing order book of close Rs 10,000 crore as on end March 2020 provides good revenue visibility of three and a half years. READ MORE

MARKET INSIGHT :: What dragged Asian markets lower today?

Private banks stare at washed-out Q1; moratorium, Covid-19 provisions eyed

For Edelweiss Securities, the April-June, 2020 quarter earnings are unlikely to bring forth any big reveal on asset quality, margins or loan growth for lenders. While the moratorium option will ensure nearly invariant asset quality, loan disbursements are likely to be muted, it said in a result expectation report. READ MORE

Aditya Birla Fashions' rights entitlement shares tumble 39%

The dealings in the REs for Renunciation of Aditya Birla Fashion and Retail Ltd were permitted on the Exchange with effect from the July 8, 2020 and will close on July 17, 2020. The shares shall be settled on T+2 rolling settlement basis and the trades shall be settled on trade-for-trade basis. The REs shall be tradable in dematerialized form only. READ MORE

NEWS ALERT :: Federal Bank cuts lending rates by 10-20 bps across tenures


Rupee Closing

>> Rupee closes mildly lower at 75.19 per US dollar vs Wednesday's close of 75.15/$

NEWS ALERT :: IndiGo releases fliers' survey

>> 68% of respondents consider airways as safest mode of transport

>> 55% fliers concerned about different quarantine rules across states

>> 55% of participants concerned over sitting in the aircraft among a lot of people

>> 62% passengers choose to opt for domestic travel in the near future

(As reported by CNBC TV18)


Stocks that hit 52-week high on BSE today

COMPANY PRICE(rs) 52 WK HIGH CHG(%)
ALEMBIC PHARMA 968.00 987.95 2.34
BIRLASOFT LTD 108.05 110.80 2.95
DHANUKA AGRITECH 805.80 829.40 -0.26
DR LAL PATHLABS 1874.95 1936.15 -1.96
HCL TECHNOLOGIES 613.00 652.20 -0.36
» More on 52 Week High

European shares dip in early deals


Silver price gives competition to gold rally as industries fuel demand

In the Indian spot market, silver has turned most expensive since September 2013. On the MCX, September futures of silver is trading above Rs 53,000 a kg. In Mumbai’s Zaveri Bazar, the metal on Wednesday closed at Rs 52,195 a kg (Rs 840 costlier than Tuesday) — the highest in seven years. The all-time high price of silver is Rs 75,000 a kg, recorded in April 2011. READ MORE

INDEX GAINER:: Mahindra & Mahindra trades 3.6% higher


Residential unit sales at 10-yr low in H1; office vacancy rate at 4-yr high

“The impact can be gauged by the fact that sales and launches have capitulated by 84 per cent and 90 per cent YoY in the April – June 2020 quarter of the calendar year 2020 (Q2-2020) across the eight markets under review. NCR, Chennai and Hyderabad had near zero sales during this period, while developers were forced to postpone launches across markets due to labour unavailability and the well anticipated drop in demand,” the Knight Frank report said. READ MORE 

 

Expert View :: Silver may soon test 54,000-55,000, says Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking

>> MCX silver prices touched 7-year high of 51,999 levels today. Generally, silver prices follow trends seen in gold prices that touched life-time high of 49,348 levels recently. Silver is following the gold trend and is heading towards upside.

>> Currently, the ratio between gold and silver is at 92.90. However, at the starting of the year 2020, it was around 83.72 mark. While, gold increased sharply, silver did not increase in this pandemic crisis. This is indicating positive signals for the silver prices also.
 
>> Globally, industrial demand ahas increased and ETF demand also supported the Silver. The holding of the biggest Silver ETF, Blackrock's ishare silver trust, has surged by $2.45 billion to $9.72 billion this year.

>> In India, good monsoon is also one of the reasons for the increase in prices. Demand for silver jewellery from rural areas has also supported the prices. We expect silver prices to test 54,000 to 55,000 levels soon.

Wipro: Strong operating margin, cash position offer comfort to investors

ollowing the positive June 2020 quarter (Q1) results, announced on Tuesday after market hours, shares of Wipro surged by 15.5 per cent on Wednesday, outperforming the Sensex, which ended flat.
 
The sharp uptick in Wipro’s stock, which was the top gainer in the Nifty IT index, also rubbed off on other IT companies, with the sectoral index jumping 5 per cent.  READ MORE

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


MARKET CHECK:: BSE IT index pares gains


BROKERAGE VIEW:: Centrum Broking on Mindtree

Rating: BUY | Target Price: Rs 1,020

We expect Mindtree's US dollar revenues to decline by 5% YoY for FY21 and this almost at par with Tier 1 peer TCS. Mindtree now has the highest contribution from Top account (30% of total revenues) which is highest in the sector. This can remain a constraint in P/E multiple expansion. We value Mindtree at 16.5x June 22E EPS which yields a target price of Rs 1,020/sh. Our target multiple of Mindtree is 11 per cent discount to our current target muiltple of LT Infotech.  

BROKERAGE VIEW:: Emkay Global Financial Services on Federal Bank

  • Federal Bank reported PAT of Rs4bn, beating estimates of Rs3bn, led by stable margins, higher treasury gains and lower provisioning. The bank has accelerated specific PCR, but cumulative contingent Covid-19 provisions stand lower at Rs1.86bn; 0.15% of loans.
  • The net loan moratorium rate in value terms stood at 24% vs. 35% in Phase 1, but it was higher in retail at 33% vs. 40% earlier. As per management, customers with no EMI paid as a percentage of total moratorium book stands lower at 12% and will be closely watched.
     
  • The bank’s Tier I ratio (ex Q1FY21 profits) stands at 13%, but it is not looking to raise capital in a hurry unlike other banks. Clarity on MD’s term extension beyond September’20 is still awaited from the RBI.
     
  • We revise our TP to Rs58, factoring in earnings/multiple of 0.7x FY22E ABV and retain Buy for its strong retail re-orientation, healthy liability profile, reasonable capital level (Tier I at 13.0%) and lower valuations among mid-size banks.

BROKERAGE VIEW:: ICICI Securities on Bandhan Bank

We adore Bandhan’s long-term franchise of MFI, affordable (unique, socially responsible and market leader with >20 years track record) housed under a solid banking franchise with adequate capitalisation and strengthening liabilities. Maintain BUY with target price of Rs 455.

BROKERAGE VIEW:: Edelweiss Securities on Oberoi Realty

Covid-19 dragged new sales of Oberoi Realty (OBER) by 28% YoY in Q4FY20 and 90% YoY in Q1FY21. The company sold just five units in Q1FY21 worth Rs 242mn. The annuity business suffered too with rental revenues declining 10% QoQ in Q4FY20. The pandemic has: i) dampened the already weak demand for luxury housing; ii) led to a deferral of timelines for annuity projects; and iii) created uncertainty pertaining to launch of the Goregaon Phase 3 and Thane projects. We believe near-term sales outlook is challenging even as a lean balance sheet provides comfort. Maintain ‘HOLD’ with a revised TP of Rs 385 (Rs 360 earlier) as we roll forward the valuation to September 2021E.

BROKERAGE VIEW:: Anand Rathi Shares on Pharma sector

Drug shortages and market-share gains in existing products are likely to help US sales of the companies we cover to grow 3% to $415m. Alembic is likely to continue its strong run in the US, while Cadila is expected to report flattish sales.
 
The 9% depreciation of the rupee (to Rs 75.5 to the dollar) is expected to provide some cushion as, apart from the natural hedge, most pharma companies leave their position open and, hence, are likely to benefit.
 
Favourable macros and government policies are likely to drive strong structural growth in APIs and the CRAMS businesses as large pharma companies are now looking to diversify their raw material sources.
 
Top picks: Torrent Pharma, Ipca Laboratories, Suven Pharma

BROKERAGE VIEW:: ICICI Securities on Federal Bank

With gradual unlocking of the economy, business growth is seen to be subdued in FY21E, post which pace should improve. With the management ruling out capital raising in near term, risk of dilution is taken care of. The bank intends to scale up provisions, going forward, which would take a toll on profitability. Accordingly, we expect PAT to dip 18% YoY to Rs 1,260 crore in FY21E but recover to Rs 1,755 crore in FY22E. We maintain HOLD and value the stock at 0.8x FY22E ABV with a revised target price of Rs 55. The ambiguity on extension of term of the current MD remains a near term overhang.

IMF chief warns global economy 'not out of the woods,' dangers lurk

Global economic activity is picking up after an unprecedented decline this year due to the coronavirus pandemic, but a second major wave of infections could trigger more disruptions, the International Monetary Fund's top official said. IMF Managing Director Kristalina Georgieva said the fiscal costs of actions aimed at containing the pandemic and mitigating its economic fallout were driving up already high debt levels, but it was premature to start withdrawing needed safety nets. READ MORE

NEWS ALERT :: SBI Cards & Payment Services appoints Ashwini Tewari as MD & CEO

>> The Board, at the meeting held on July 15, approved the following: 


DMart slips 15% in 4 days, hits over 3-month low on weak Q1 earnings

Shares of Avenue Supermarts, which runs the DMart chain of stores, were trading lower for the fourth straight day, falling 8 per cent to Rs 1,981 on the BSE on Thursday after the company reported a sharp 34 per cent fall in revenues in the June quarter (Q1FY20). The stock has fallen below its qualified institutional placement (QIP) issue price of Rs 2,049 per share. READ MORE

Infosys, Wipro, TCS: Charts suggest more upside potential for IT stocks

Shares of IT companies jumped up to 12.5 per cent on Thursday after sector majors Infosys and Wipro reported better-than-expected results for the quarter ended June 2020 (Q1FY21). The Nifty IT index advanced over 5.5 per cent to 17,373 levels with 9 out of 10 constituents trading in the green. READ MORE


NEWS ALERT :: Cadila Health receives sANDA approval from US FDA for manufacturing of Doxycycline Injection

>> Zydus Cadila has received approval for its supplemental Abbreviated New Drug Application (SANDA) for Doxycycline Injection USP, 100 mg/Vial from the US FDA. 

>> The product will be manufactured at Cadila Healthcare Ltd’s injectable facility at Jarod, Vadodara (formerly known as Liva Pharmaceuticals Ltd). 

(Source: BSE filing)


How to use technical analysis to spot overbought and oversold stocks

Overbought and oversold conditions, categorised as such according to the position of a stock price / market level with respect to a certain threshold, can be a psychological trigger for traders to either enter or exit the security and even markets. The categorisation can be on the basis of either fundamental or technical analysis. READ MORE

ICICI Securities hits fresh all-time high; stock surges 38% in a month

ICICI Securities, a subsidiary of ICICI Bank, is a technology-based firm offering a wide range of financial services including investment banking institutional broking retail broking private wealth management and financial product distribution. It is one of the pioneers in the e-brokerage business in India. READ MORE

Yes Bank FPO: Anchor demand indicates Rs 15,000 crore a tall ask for lender

Yes Bank on Tuesday allotted Rs 4,100 crore shares to a dozen institutional investors in the anchor category. Yes Bank’s FPO size if Rs 15,000 crore. Half this is meant for so-called qualified institutional buyers (QIBs) and 60 per cent of QIB portion can be allotted to anchor investors. As a result, up to Rs 4,500 crore worth of shares were available under the anchor book. Also, a third of the anchor book---Rs 1,500 crore—is reserved for domestic MFs. However, barely any MF bid for shares in the anchor category. READ MORE

Infosys ripe for re-rating after strong performance in June quarter

Infosys’ June 2020 quarter (Q1) results are the best, so far, in the sector, not only in terms of the firm beating the Street’s expectations but also the management's revenue guidance. And this improves the earnings and re-rating potential of the stock. READ MORE

Google stake in Jio, 5G plans: How brokerages interpreted RIL's 43rd AGM

Giving a sense of the cutting edge technology from the RIL stable, Mukesh Ambani said in the company’s 43rd AGM on Wednesday that homegrown 5G solutions would be available for trials as soon as spectrum was given out. It could be ready for field deployment next year. That apart, Google picked up 7.7 per cent stake in the company for Rs 33,737 crore. However, the deal with Saudi Aramco for its oil-to-chemicals (O2C) business segment has not yet fructified, which seems to worry the markets. READ MORE

NEWS ALERT :: Govt puts imports of power tillers & components in restricted list

>> Power tiller importers will have to apply for import licence

>> Licence to be given only for 10% of imports by a firm

>> Power tiller importers need to have infra for post sals services and spare parts

>> Only manufacturers to be eligible for applying for import licence

L&T Infotech rises 6%, hits new high as June quarter profit rises 17% YoY

Shares of Larsen & Toubro Infotech (LTI) rose 6.58 per cent to hit a fresh all-time high of Rs 2,340 on the BSE on Thursday after the mid-size IT services firm reported a 17.1 per cent year-on-year (YoY) rise in consolidated net profit for June quarter (Q1FY21) at Rs 414.6 crore on account of lower operating expenses. READ MORE

BSE IT index hits record high on strong Q1 show by Infosys, L&T Infotech

The IT index surpassed its previous high of 16,586 recorded on February 19, 2020. In comparison, the S&P BSE Sensex was up 0.13 per cent at 36,098 points at 09:34 am.
 
Infosys, Tata Consultancy Services (TCS), HCL Technologies and Larsen & Toubro Infotech from the BSE IT index have hit their respective record highs, while Persistent Systems and Mphasis hit 52-week highs today. READ MORE

Rupee Opening

Rupee opens lower at 75.23 per US dollar vs Wednesday's close of 75.15/$

Infosys hits record high on strong Q1 nos; analysts see up to 26% upside

Infosys shares zoomed up to 12.5 per cent to hit a fresh lifetime high of Rs 935.90 apiece on the BSE on Thursday, a day after the IT major posted better-than-expected numbers for the first quarter of the financial year 2020-21 (Q1FY21), owing to steady performance in most business verticals and geographies, and healthy order flow. READ MORE

STOCK ALERT :: L&T Infotech hits record high


Oberoi Realty erases 1% post Q1 results


MARKET CHECK


Nifty Bank index slips 200 points


Sector Alert :: Nifty IT index at record high; TCS, HCL Tech, Infy at fresh highs too


Cochin Shipyard up about 1%

>> Co has signed a contract for the construction and supply of two autonomous electric ferries for ASKO Maritime AS, Norway with an option to build two more identical vessels. The company, however, did not disclose the value of the contract.


SBI trades weak in early deals


Bandhan Bank slides 2% post Q1 nos


Reliance Industries trades flat with positive bias


HCL Technologies hits all-time high


Result Impact | Infosys freezes at 10% upper circuit at open


Sectoral trends on NSE at Open


Sensex Heatmap at Open


Opening Bell


Opening Bell


BROKERAGE VIEW :: Motilal Oswal Financial Services on Federal Bank

CMP: Rs 50 | TP: Rs 65 (+30%) | Reco: Buy

>> FB has reported moderation in loan/fee growth affected by the lockdown due to the COVID-19 pandemic. We expect (a) growth trends to remain modest due to the consumption slowdown, and (b) banks to become more cautious in lending to COVID affected sectors and certain retail/SME segments. However, the bank’s
liability franchise remains strong with CASA + Retail TD of 92% and with one of the highest LCRs amongst banks. On the asset quality front, we expect credit cost trends to remain elevated as slippages should increase sharply from 2HFY21. We estimate FB to report RoA/RoE of 0.8%/10.3% by FY22E. Maintain Buy with an unchanged TP of INR65 (0.8x FY22E ABV

Top gainers and losers on the S&P BSE Sensex at Pre-open


Markets at Pre-open


Markets at Pre-open


Stocks to watch: Infosys, Cyient, SBI, Cochin Shipyard, L&T Tech Services

Infosys: IT services major Infosys on Wednesday beat Street estimates with a 12 per cent rise in profit before tax (PBT), which stood at Rs 5,792 crore in the first quarter of the financial year 2020-21 (Q1FY21), boosted by steady performance in most business verticals and geographies, and healthy order flow.
 
L&T Infotech: Mid-size IT services firm Larsen & Toubro Infotech (LTI) reported a profit before tax (PBT) of Rs 558.9 crore, up 16.9 per cent year-on-year (YoY), while it remained flat on sequential basis, the company said in an exchange filing. The net profit for the quarter ended June 2020 (Q1FY21) rose 17.1 per cent year-on-year to Rs 416.4 crore on account of lower operating expenses. It, however, fell 2.6 per cent on a sequential basis. READ MORE

BROKERAGE VIEW :: Motilal Oswal Financial Services on Oberoi Realty

CMP: Rs 371 | TP: Rs 444 (+20%) | Reco: Buy

>> MMR is one of the worst affected regions in the country due to the COVID-19 pandemic and is under strict lockdown since the second half of Mar’20. OBER’s concentration in the geography (presence of all its business segments in MMR) poses near-term challenges for the company owing to uncertainty around easing of the lockdown. However, the company’s balance sheet strength provides comfort.

>>  We expect both residential and annuity segment’s momentum to pick up in FY22E, largely driven by the launch of the Thane project at end-FY21 and operationalization of the Borivali mall in 2HFY22E. Maintain Buy with a PT of INR444.
 

BROKERAGE VIEW :: Motilal Oswal Financial Services on Bandhan Bank

CMP: Rs 350 | TP: Rs 425 (+22%) | Reco: Buy

>> As economic activity staggers to a start in India, we are seeing steady improvement in collection trends. Bandhan’s collection efficiency in the MFI portfolio has
improved to ~73%; at the overall portfolio level, it has improved to ~76%. Thus, the incidence of moratorium availed has been declining. Furthermore, the bank holds INR17.7b total COVID-19-related / excess standard provisions (2.5% of loans) to manage higher delinquencies over 2HFY21. We maintain a Buy rating, with revised TP of INR425 (3.0x FY22E BV)

BROKERAGE VIEW :: Credit Suisse on Bandhan Bank

Maintains 'Neutral',Target price: Rs 360

>> Up-fronted significant part of Covid-19 provisions

>> Better placed to absorb spike in credit costs

BROKERAGE VIEW :: UBS on Infosys

Maintains 'Neutral' Target price: Rs 810

>> Q1 beats estimates

>> FY21 guidance a big positive

>> FY21 guidance should help narrow valuation discount to TCS

>> Will wait to see if its driven by better demand or share gain

BROKERAGE VIEW :: Nomura on Bandhan Bank

Downgrades to 'Reduce', Target price: Rs 325

>> Bank reported better-than-expected operating performance

>> Have built Covid-19 provisions of over 2 per cent of AUM

>> Improvement in collection trends to over 70% a positive surprise

>> Valuation at 2.7x June FY22E book leave limited room for comfort

Bulk deals on NSE as on Wednesday

Bulk deals on BSE as on Wednesday

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


NEWS ALERT :: China's second-quarter GDP grows 3.2% YoY

>> China’s economy grew 3.2% in the second quarter from a year earlier, data showed on Thursday, recovering from a record contraction as lockdown measures ended and policymakers stepped up stimulus to combat the shock from the coronavirus crisis.

KEY POINTS
 
* Q2 GDP +3.2% YoY (f’cast +2.5%, Q1 -6.8%)
 
* Q2 GDP +11.5% QoQ (f’cast +9.6%, Q1 -9.8%)
 
* June industrial output +4.8% YoY (f’cast +4.7%, May +4.4%)
 
* June retail sales -1.8% YoY(f’cast +0.3%, May -2.8%)

(Via Reuters)

Rupee check

Source: Bloomberg


Oil prices slip after OPEC, allies agree to loosen oil supply curbs

>> Oil prices slid on Thursday after OPEC and allies such as Russia agreed to ease record supply curbs from August, though the drop was cushioned by hopes for a swift US demand pick-up after a bigger-than-expected drawdown from the country’s crude stocks.

>> The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, agreed on Wednesday to scale back oil production cuts from August as the global economy slowly recovers from the coronavirus pandemic.

>> Brent crude LCOc1 fell 13 cents, or 0.3%, at $43.66 a barrel, and US West Texas Intermediate (WTI) crude CLc1 dropped 18 cents, or 0.4%, to $41.02 a barrel. They rose 2% the previous day, helped by the U.S. crude inventories drop.

(Source: Reuters)

SGX Nifty hints at lower opening

>> At 8:12 am, the index was at 10,613 level, down 36 points or 0.34 per cent.

Asian markets trade mixed

Source: Reuters


Wall Street rallies on vaccine bets, Goldman results

Source: Reuters


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