MARKET WRAP: Sensex plunges 560 pts; sees third biggest fall in 2019

Markets saw the third-worst fall of 2019 on Friday as benchmark indices S&P BSE Sensex and Nifty50, both, fell to two-month low. The indices touched intra-day lows of 38,271 level at Sensex and 11,399 mark at Nifty. 'Super-rich tax' concerns on FPI, trade war tenions and weak corporate earnings contributed to the fall.

The Sensex tanked 560 points, or 1.44 per cent, to close at 38,337 levels with 26 of the 30 stocks listed at the index ending in the red. IndusInd Bank, Bajaj Finance, M&M, and YES Bank were the top laggards while only NTPC, TCS, PowerGrid and ONGC ended in the green. The Nifty50, too, lost 178 points, or 1.53 per cent, to settle at 11,419 mark. Of the 50 stocks listed at the index, only 7 stocks advanced while the remaining 43 declined. 

In the broader market, S&P BSE MidCap closed 285 points, or 2 per cent, lower at 14,078 level while the S&P BSE SmallCap slipped 248 points, or 1.83 per cent, at 13,310 levels.

Sectorally, all the indices ended in the red. Nifty Auto index, too, tanked to two-month low to end 3.31 per cent lower. This was followed by losses in Nifty Private Bank index and Nifty Pharma index, down 2.45 per cent and 2.23 per cent respectively. 

The Nifty Auto index hitting a three-year low on Friday. Thus far in the calendar year 2019, auto index slipped 21 per cent, against 5 per cent rise in the benchmark index. M&M, Motherson Sumi Systems, TVS Motor Company, Exide Industries, Escorts, MSIL, Eicher Motors, Hero MotoCorp, Bosch and Ashok Leyland have seen market value erosion of more than 22 per cent during the period. READ MORE HERE

GLOBAL CUES

Global stocks rose on Friday as investors firmed up bets on a U.S. interest rate cut at the end of July after a speech by a top Federal Reserve official further cemented expectations for one, fuelling appetite for risky assets and capping the dollar.

Japan's Nikkei ended 2 per cent higher while South Korea's Kospi gained 1.35 per cent.

(With inputs from Reuters)

3:37 PM IST

3:36 PM IST

3:34 PM IST The S&P BSE Sensex plunged 560 points or 1.44 per cent to settle at 38,337 levels while NSE's Nifty50 index ended at 11,419, down 178 points or 1.53 per cent. 

3:22 PM IST Shares of RBL Bank tanked as much as 13.75 per cent in the afternoon session on Friday after releasing June quarter results for the financial year 2019-20 (FY20). The lender reported healthy set of numbers for the period under review but said it expects to face some challenges on some of its exposures in the near term. Reacting to it, investor sentiment took a hit, thus dragging the stock nearly 14 per cent lower during the trade. READ MORE

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2:48 PM IST

2:28 PM IST -- SFIO probing role of rating agencies in recent fraud cases

LIVE UPDATES

Sectoral losers and gainers on the NSE


Top losers and gainers on the S&P BSE Sensex


CLOSING BELL

The S&P BSE Sensex plunged 560 points or 1.44 per cent to settle at 38,337 levels while NSE's Nifty50 index ended at 11,419, down 178 points or 1.53 per cent. 

RBL Bank tumbles nearly 14% post Q1 nos as lender signals challenges ahead

Shares of RBL Bank tanked as much as 13.75 per cent in the afternoon session on Friday after releasing June quarter results for the financial year 2019-20 (FY20). The lender reported healthy set of numbers for the period under review but said it expects to face some challenges on some of its exposures in the near term.
Reacting to it, investor sentiment took a hit, thus dragging the stock nearly 14 per cent lower during the trade. READ MORE

MARKET CHECK | Nifty at 2-month low


Market check


Market check


MARKET ALERT | Nifty Bank trades below 30,000 mark for the first time in two months


MARKET CHECK


Nifty Bank trades below 30,000 for the first time in two months


NEWS ALERT | MCA calls for urgent need to probe role of rating cos in various fraud cases: Govt sources to CNBC

-- SFIO probing role of rating agencies in recent fraud cases

Nifty Auto hits three-year low; Analysts see more pain ahead

An analysis of past 20 years’ demand cycles done by Edelweiss Securities indicates that the auto sector is currently in the middle of a down cycle. Volume recovery, they say, is unlikely to be as sharp as in the past, unless there is strong fiscal support.

“The current slowdown is different from previous ones. First, it’s driven by domestic factors rather than global events; second, there is stiff competition from growing organised pre-owned vehicles market; third, the slowdown is characterised by significantly higher margin pressure; and is led by prohibitive jump in vehicle cost,” wrote Chirag Shah and Jay Mehta of Edelweiss in a recent report. READ MORE

Sharp fall in RBL Bank


Market check | Sensex crashes over 500 pts


NEWS ALERT | Amit Burman appointed Dabur's chairman for a period of 5 years, effective today

-- Anand Burman resigns as chairman, effective today

Biocon crashes over 8%


Result impact: Dabur slides


Dabur Q1 results

-- Net profit up 12.6% YoY at Rs 363.1 cr
-- Revenue up 9.3% at Rs 2,273.3 cr YoY
-- EBITDA at Rs 457.7 cr
-- Domestic volume growth at 9.6%

Bandhan Bank Q1 results

-- Net profit at Rs 701.1 cr vs Rs 650 cr QoQ
-- Proviosions at Rs 125.4 cr vs Rs 153.3 cr QoQ
-- NII at Rs 1,410.4 cr
-- Gross NPA at Rs 851 cr
-- Gross NPA at 2.02% vs 2.04% QoQ
-- Net NPA at 0.56% vs 0.58% QoQ

Results impact | RBL Bank slips over 7% after slippages rise in Q1


Dhanuka Agritech Q1 results

-- Consolidated net profit down 9.3% at RS 14.7 cr vs Rs 16.2 cr YoY

-- Consolidated revenue ip 2.8% at 219 cr cvs Rs 213 cr YoY

NEWS ALERT | US FDA issues no observations for Baddi unit: Cadila Healthcare

-- Unit inspected between July 15-19

HDFC Bank Q1 preview: PAT likely to jump 27% YoY on stable asset quality

Supported by base effect, analysts at Prabhudas Lilladher peg the bank’s Q1FY20 net profit at Rs 5,865 crore, up 27.5 per cent YoY from a profit of Rs 4,601.4 crore clocked in the June quarter of previous fiscal (Q1FY19). The bank had reported a profit of Rs 5,885.1 crore in the March quarter of FY19 (Q4FY19).
 
“Stable asset quality and credit cost would aid the profitability in the recently concluded quarter,” said analysts at Phillip Capital in an earnings preview note, who estimate a PAT of Rs 5,553.2 crore. READ FULL PREVIEW HERE

Steel stocks struggle to recover

COMPANY NAME LATEST HIGH LOW CHG
(rs)
CHG(%)
S A I L 44.60 46.10 44.55 -1.05 -2.30
JINDAL STEEL 138.80 144.35 138.55 -3.80 -2.66
TATA STEEL 456.60 472.90 454.20 -9.95 -2.13
AANCHAL ISPAT 12.77 13.50 12.74 -0.68 -5.06
ADHUNIK METAL 1.11 1.12 1.11 -0.05 -4.31
SUPERSHAKTI MET. 407.00 409.00 407.00 -15.00 -3.55
JSW STEEL 260.95 269.00 260.85 -5.30 -1.99
RMG ALLOY 9.16 9.50 9.15 -0.56 -5.76
UTTAM VALUE STE. 0.19 0.19 0.19 0.00 0.00
JINDAL STAIN. HI 68.45 74.00 67.00 -1.70 -2.42

MARKET CHECK | Only 2 stocks in the S&P BSE Sensex trade in the green


RBL Bank slips nearly 1% post June quarter results


EARNINGS ALERT | RBL Bank posts 41% YoY rise in net profit at Rs 267 crore

- Gross NPA unchanged at 1.38% QoQ
- Slippages at Rs 225 cr against Rs 206  cr QoQ
- Write-offs at Rs 147 cr against Rs 91 cr QoQ

6th tranche of CPSE ETF opens today for retail investors; should you apply?

The government plans to raise up to Rs 10,000 crore from this tranche of the CPSE ETF, which tracks shares of 11 Central Public Sector Enterprises (CPSEs) -- ONGC, NTPC, Coal India, IOC, Rural Electrification Corp, Power Finance Corp, Bharat Electronics, Oil India, NBCC India, NLC India and SJVN.
 
The CPSE ETF is an open-ended index exchange traded scheme with no lock-in period. Central Public Sector Enterprises (“CPSE”) ETF, which replicates the Nifty CPSE Index, is a concentrated portfolio of PSU stocks, whose objective is to help the government in disinvesting its stake in a few CPSEs via the ETF route READ MORE

DHFL slides over 6%


HDFC AMC soars 22% in four days in a weak market on strong Q1 results

Shares of HDFC Asset Management Company (AMC) were trading higher for the fourth straight day, ralling 9 per cent to Rs 2,369 apiece on the BSE on Friday in an otherwise weak market, after it reported strong numbers for June quarter of financial year 2019-20 (Q1FY20). The stock was trading at the highest level since its listing on August 6, 2018. READ MORE

Market check | Sensex slips over 400 pts


NEWS ALERT | Prakash Mittal resigns as the Executive Chairman of Greenply Ind w.e.f. today


Don't see major rise in oil prices due to slowing demand, market glut: IEA

The International Energy Agency (IEA) doesn't expect oil prices to rise significantly because demand is slowing and there is a glut in global crude markets, its executive director said on Friday.   Electric vehicles are not expected to make a dent on crude demand in India and elsewhere, IEA's Fatih Birol also said, adding that he expects India's oil demand to continue rising. READ MORE

Nifty Auto index down 2%

-- Maruti, Apollo Tyres, Bosch, Eicher Motors, TVScMotors, M&M, Exide Batteries hit 52-week low


Heatmap: S&P BSE Sensex


May telecom data

-- Reliance Jio adds 81.8 lakh subscribers vs additional 80.8 lakh in April
-- Bharti Airtel loses 15.1 lakh subscribers vs loss of 32.9 lakh in April
-- Vodafone Idea loses 57 lakh subscribes vs loss of 15.8 lakh in April

Market check

-- S&P BSE SmallCap index worst hit; index trading at 13,387.20, down 170.83 points or 1.26%


Nifty slips below 11,500 after six trading sessions


Reliance Securities on Cyient

Recommendation: BUY

CMP: Rs 544

Target Price: Rs 610

Cyient continues to face revenue headwinds owing to moving parts in its business. The performance this quarter marks a poor start to FY20. Even as we factor in revenue and margin improvement from 2QFY20E onwards, we believe it will be rather an uphill task for Cyient to achieve double-digit EBIT growth with lower services revenue and major cost headwinds. Issues in its key verticals like AERO and COMM persist, even as we expect recovery in 2QFY20E. The stock has corrected by 22% over the past year, which we believe factors in all negatives, with valuation at 11.1x FY21E EPS fairly reasonable. Hence, reducing our EPS estimates by 13-15% for FY20E/FY21E and cutting our target PE multiple to 12.5x (from 14x earlier), we maintain our BUY recommendation on the stock with a revised Target Price of Rs610 (from Rs780 earlier).

Market check | Sensex falls over 350 pts


Cyient reports worst quarter nos in decade; stock dips 11% to hit 52-wk low

Shares of Cyient tanked 11 per cent intra-day to hit its 52-week low of Rs 482 per share on the BSE on Friday after the company reported disappointing set of numbers for the quarter ended June 2019 (Q1FY20). Cyient's Q1FY20 revenue of USD 157 million de-grew by 5.2 per cent quarter on quarter (QoQ) and 3 per cent year on year (YoY) and was around 5 per cent below against analyst estimates. This is Cyient’s worst QoQ performance in the past 10 years. READ MORE

Nifty Auto index under heavy pressure


Motilal Oswal Financial Services on DB Corp

Recommendation: BUY

CMP: Rs 176

TP: Rs 210

Outlook muted with limited growth visibility: Given weak ad spending by both national and local advertisers, management refrained from providing any guidance. However, post results, we cut our revenue/PAT estimate by 9%/18% for FY20. Yet we build in revenue/EBITDA growth of 3%/16% for the year in view of low newsprint cost and the strong focus on reducing cost.
 
Valuation view: Our target price stands at INR210 (prior: INR215) - ascribing 10x (~40% discount to three-year average) P/E on FY21E EPS. Despite the cut in earnings, PAT is estimated to grow at 12%/19% in FY20/21, given the sharp reduction in opex. Maintain Buy.
 
 

Cement stocks trade higher in an otherwise subdued market

COMPANY LATEST(rs) CHG(rs) CHG(%) VOLUME
INDIA CEMENTS 99.50 0.85 0.86 160053
AMBUJA CEM. 219.20 2.30 1.06 138392
ACC 1604.10 36.90 2.35 136953
ULTRATECH CEM. 4650.30 46.70 1.01 16899
CENTURY TEXTILES 930.80 -4.65 -0.50 15770

Maruti Suzuki slips 2%, hits over two-year low amid earnings concerns

Shares of Maruti Suzuki India (MSIL) hit an over two-year low of Rs 5,790, down 2 per cent, in intra-day trade on Friday. The passenger vehicle company's stock has slipped 6 per cent in the past three trading days on the BSE, on concerns of weak earnings amid a low volume in the April-June quarter (Q2FY19), and is trading at its lowest level since January 25, 2017, when it touched Rs 5,718 in intra-day deal. READ MORE

Gold soars to 6-year-high to $1,450 on US Fed rate cut hint, Iran tensions

Spot gold hit $1,452.60 an ounce in early trade, its highest since May 10, 2013, before easing 0.2 per cent to $1,442.56 as of 0336 GMT.
 
The metal has gained nearly 2 per cent so far this week, on track for a second consecutive weekly gain.
 
US gold futures jumped 1.1 per cent to $1,444.10 an ounce. READ MORE

Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
REL. COMM. 1.79 0.08 4.68 7819828
BIOCON 257.55 -5.50 -2.09 6707330
YES BANK 84.40 -1.40 -1.63 2929942
ICICI BANK 416.00 -2.70 -0.64 1335595
VODAFONE IDEA 11.24 -0.06 -0.53 1207503
» More on Most Active Volume

Bajaj Finance slumps over 3%, top loser on S&P BSE Sensex


All the Nifty sectoral indices are trading in the red


Market check

-- Sensex at 38,636.48, down 260.98 points or 0.67% 
 
-- NIfty at 11,517.50, down 79.40 points or 0.68% 



Sebi seeks to address issue of abrupt auditor exits from listed companies

The Securities and Exchange Board of India (Sebi), on Thursday, issued a consultation paper to address the issue of abrupt resignations of auditors from listed companies. The markets regulator has proposed that auditors should be made to review —limited or complete report — for the quarter during which it resigns. READ MORE

Market check


ACC gains 5% on better-than-expected June quarter earnings

ACC shares rose 5 per cent to Rs 1,647 on the BSE in Friday's early morning deal after the company reported a better-than-expected 39 per cent year-on-year (YoY) growth in consolidated net profit at Rs 456 crore in June quarter (Q2CY19) on the back of higher realisation. The cement company had a profit of Rs 329 crore in the same quarter last year. READ MORE

Market check | Nifty tests 11,550


NEWS ALERT | L&T's Power Business wins orders between Rs 1,000 cr to Rs 2500 cr


Rajesh Exports rises over 1%


Market check | Sensex extends losses


Reliance Industries trades flat


Prime Focus rises over 6%


Sasken Technologies slips 6%


Broader market check | MidCap, SmallCap indices underperforming benchmark

-- MidCap index down 0.27 per cent

-- SmallCap index down  0.76 per cent


Gravita India rises over 10%


Market check


Market check


Muthoot Finance rises 0.89%


Exide Industries dips over 4%


Canara Bank rises 0.8%


Trident dips over 4%


Reliance Nippon Life AMC trades flat with negative bias

-- CCI approves acquisition of up to 75 percent stake in the company by Nippon Life Insurance


Jasch Industries rallies over 9% after ratings' upgrade

--  CRISIL has upgraded the rating of long-term bank loan facilities from stable to BBB/Positive. Short—term rating of A3+ has been reaffirmed


Oriental Bank of Commerce trades flat

-- CARE revised rating outlook of Tier I & Tier II bonds from negative to stable

Thermax rises 2%

-- Company bagged order worth Rs 471 crore from Indian government power company for project in Jharkhand.


Rallis India zooms over 7% after Q1 result


Broader market check


Navkar Corp gains 4%


Amara Raja Batteries dips over 2%


Ambuja Cement rises over 1.5%


InterGlobe Aviation trades 1% higher ahead of Q1 nos


Hatsun Agro Product gains 8% after PAT jumps 35% in Q1


Piramal Enterprises trades over 1% higher


ACC gains 4% after Q1 nos


Sterlite Technologies trades flat


Cyient slips nealry 9% in early trade post Q1 nos


Sectoral trends on NSE at this hour


Top gainers and losers on S&P BSE Sensex


Market at open


Market at open


Top gainers and losers on S&P BSE Sensex during Pre-open trade


Market at pre-open


Market at pre-open


Rupee opening

Rupee opens higher at 68.75/$ vs Thursday's close of 68.95 against the US dollar

We have done right investments for sustained growth, says Infosys CEO

In Q1 of FY20, your growth rate was better than even market leader TCS. What went into it?
 
Our focus has been on what our clients want. That's why my travel has been a bit intense in the first year. It’s because there are a lot of changes happening with the clients. So, what are the things they are trying to do? Look at a consumer products company, or a bank, or a utilities firm.
 
They want to cater for their digital-savvy customers, whether through mobile apps, or data, or cloud. Those are the areas where we started our investment. Clients are beginning to look at Infosys as an entity that has the right skills and capabilities to help them in their digital journey. READ FULL INTERVIEW HERE
Salil Parekh, CEO Infosys

IL&FS senior management asked ICRA for 'desired ratings': ED probe

The Enforcement Directorate (ED) has found that ratings of the Infrastructure Leasing & Financial Services (IL&FS) group firms were upgraded on many occasions after the intervention of senior management seeking ratings review. While changing the ratings of several companies, their financial stress was not taken into account by the rating agencies, the findings show, pointing to an absence of checks and balances, according to sources close to the development. READ MORE

Stocks to watch

Reliance Industries (RIL) is slated to announce its June quarter results. Analysts expect it to report a drop in gross refining margin (GRM) on sequential basis, while petrochemical EBIDTA is projected to fall up to 9 per cent on weaker margins. 
 
IndiGo: Parent company, InterGlobe Aviation will announce the airline’s Q1FY20 results today. While analysts expect the country’s largest airline to post stellar Q1 numbers, investors will hope for more clarity, and perhaps a truce between two promoter groups – Rahul Bhatia and Rakesh Gangwal. READ MORE

 

CPSE ETF anchor issue subscribed 8 times, opens for retail investors today

People in the know said anchor investors placed bids for units worth Rs 20,000 crore against Rs 2,400 crore on offer. Societe Generale, Credit Suisse, Morgan Stanley, Goldman Sachs, Merrill Lynch, Citigroup, Copthall, Avendus, ICICI Prudential Mutual Fund, and Edelweiss Mutual Fund were among the institutional investors who placed bids.
 
The CPSE ETF FFO will be open for retail subscription on Friday. The Centre is looking to mobilise up to Rs 10,000 crore through the latest FFO. READ MORE

RIL to announce Q1 results today. Here's what brokerages expect

Reliance Industries (RIL) is slated to announce its first quarter (April-June) results for the financial year 2019-20 (FY20) on Friday. The company is largely expected to report a drop in gross refining margin (GRM) on sequential basis, while petrochemical EBIDTA (earnings before interest, depreciation, tax and amortisation) is projected to fall up to 9 per cent on weaker margins.
 
The Mukesh Ambani-led company had reported a 9.8 per cent rise in its consolidated net profit at Rs 10,362 crore, in the fourth quarter ended March 31, 2019. In the year-ago period (June quarter of FY19), the firm had posted a 17.9 per cent increase in net profit at Rs 9,459 crore.  READ MORE

IndiGo Q1 preview: Jet Airways' closure, oil price fall to drive earnings

When InterGlobe Aviation, the parent company that operates IndiGo, will announce the airline’s April-June quarter result for fiscal year 2019-20 (Q1FY20) on July 19, investors would hope for more clarity, and perhaps a truce between two promoter groups – Rahul Bhatia and Rakesh Gangwal.
 
As far as the financials are concerned, analysts expect the country’s largest airline to post stellar Q1 numbers on the back of low crude oil prices, benefit from Jet Airways’ temporary closure and fleet expansion. CLICK HERE FOR FULL PREVIEW

Sebi tightens disclosure framework for all listed banks: Details here

The capital markets regulator has said that all listed banks will have to disclose to the stock exchanges if their additional provisioning for non-performing assets (NPAs) assessed by the Reserve Bank of India (RBI) exceeds 10 per cent of the reported profit before provisions and contingencies.

In addition, disclosures will be required if the additional gross NPAs identified by the RBI exceed 15 per cent of the published incremental gross NPAs.
 
Sebi added that the new framework will come into effect immediately. READ MORE

Add fixed deposits to your portfolio as rates on offer are quite reasonable

With interest rates expected to go southwards in the coming months, it could be a good time for risk-averse investors to get locked into fixed deposits (FDs), or even recurring deposits (RDs). What works in favour of these instruments is the safety factor — a crucial factor, given the problems being faced by non-banking financial companies, which, in turn, are hurting debt funds. READ MORE

FPIs may set up SPVs in Mauritius, Singapore to avoid surcharge hike

Foreign portfolio investors (FPIs) are exploring options to route their investment through corporate structures in countries such as Mauritius, Singapore, France, and the Netherlands to bypass the additional surcharge levied in the Union Budget.
 
The government on Thursday ruled out a rollback of the “super-rich” tax on FPIs organised as trusts or association of persons. This could affect 40-50 per cent of the FPIs. READ MORE

Letter to investors :: Porinju Veliyath

Eighteen months since the sell-off in broader markets began and yet there has been no respite to small and mid-cap investors like us. All the recovery we
made from February 2019 lows has been sold into and we are back to the February levels. Longevity of the ongoing bear market in mid and small caps - of this magnitude has been astounding to even the most seasoned equity investors.

Though the maiden budget of Modi 2.0 laid out a long-term vision that the government aims to achieve, some provisions in it has been disappointing from a near term stock market perspective. While the monetary impact of these changes is minimal, the message it gives to the larger investment community is rather regressive. Intentions of the present government without doubt have been good and their efficiency in utilizing tax revenues has been excellent, but these factors aside, it seems that policy makers are not acknowledging the cardinal principles of a free market economy.

Overall, there has been a divergent and narrow market performance for a long time now. Though Nifty has held up, broader markets have shaved off 50% or more in this period. Close to 90% of listed stocks are down anywhere from 30% to 90% whereas top 10% large companies have not fallen much.

Porinju Veliyath

HDFC Securities on Colgate

Recommendation: NEUTRAL

Target Price: 1,281

Colgate’s market share has largely stabilized but we still don’t see signs of gaining meaningful share anytime soon. As a category leader, Colgate needs to drive category growth at a time when natural’s fad is moderating. Senior level management churn (Ram Raghavan - MD and Mukul Deoras – India chairman) keeps us interested in the story. Ram began his career as a management trainee with Colgate India in 1997. His recent experience as the head of innovation center at Colgate-Palmolive LATAM is exactly what Colgate India needs i.e. product excitement and diversification. With limited upside, we remain NEUTRAL on the company. We will be tracking any revamp in strategy that may trigger our upgrade.

Jefferies on Avenue Supermarts

Recommendation: HOLD

Target Price: Rs 1,430

DMART's execution remains best-in-class with a focus on driving volumes through providing a superior price-value equation to consumers and driving strong cost efficiencies to compete effectively vs competition. While rich valuations (55x FY21 PE, 32.5x EV/EBITDA) still limit upside potential, the improving earnings growth profile, coupled with ~20% stock price correction in last 12 months, make risk-reward balanced now. Our revised PT of Rs 1,430 is based on 33x Mar 21 EBITDA,
25% premium to our broader consumer coverage universe given its superior growth profile (30% EBITDA CAGR for DMART vs 15% for sector). Historical multiples not relevant given limited trading history.

Motilal Oswal Financial Services on Colgate

Recommendation: BUY

CMP: Rs 1,203

Target Price: Rs 1,400 

We lower our growth assumption for FY20 post results, leading to changes to our model. Consequently, there is a minor cut in our FY20/21 EPS estimate. Although CLGT expects a demand recovery in the coming quarters, near-term volume growth is likely to be in mid-single-digits, despite stability attained in market share in the previous quarter.

 A few factors are in CLGT’s favor from the medium-term perspective – (a) the toothpaste market share hemorrhage appears to have abated after three years, (b) there is evident traction driven by herbal and other launches and (c) valuations are relatively less expensive at ~35x FY21E EPS, ~7% discount to our ex-cigarette
and alcohol consumer peer valuations. 

With return ratios superior to peers (barring HUL) and likely to improve further due to better utilization of expanded capacity, such a discount is unwarranted when execution starts improving. Valuing the company at 40x FY21 EPS, we derive a target price of Rs 1,400. Maintain Buy

Derivative strategy on NBCC by HDFC Securities

Bear Spread strategy on NBCC
 
Buy NBCC July 52 Put at Rs 1.40 & simultaneously sell 49 Put at Rs 0.40.
 
Lot Size: 8500
 
Cost of the strategy Rs 1 (Rs 8500 per strategy)
 
Maximum profit: Rs 17,000 if NBCC closes at or below 48 on July expiry
 
Breakeven Point: Rs 51 READ MORE
 
 

Commodity outlook by Tradebulls Securities: Sell gold, buy zinc

Yesterday’s better than expected core retail sales of US prompted selling in gold and US Dollar index also tested 97 levels. Weak Euro and Pound are pushing US dollar stronger which is creating headwinds for gold. We believe going next week, silver should be on investor’s radar as sentiment is changing in silver. The reason for holding long gold hasn’t gone away but we could see some nervous long in the market as prices are struggling to make a new high. If we are selling, it’s not because we are creating a short position but only reducing our exposure. READ MORE

Bulk deal on NSE as on Thursday

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


Rupee check

Source: Bloomberg


Oil check

At 08:05 am, Brent Crude Futures were at $63.13 per barrel

SGX Nifty

At 08:04 am, SGX Nifty was trading 38 points higher at 11,640 levels, indicating a flat to positive start for domestic indices. 

Asian Markets check

Source: Reuters


US Market check

Source: Reuters


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