MARKET WRAP: Sensex trims losses, ends 12 pts down; Nifty closes at 11,194

Topics Markets | HDFC Bank | Amazon

The S&P BSE MidCap index slipped 0.6 per cent to 13,702.55 levels (Photo credit: Kamlesh Pednekar)
The Indian stock market ended Friday's volatile session on a flat note with negative bias led by selling in financial, auto, and metal counters. However, Reliance Industries (RIL) and IT stocks gave much-needed support. 

The S&P BSE Sensex today ended at 38,129, down 12 points or 0.03 per cent while NSE's Nifty ended 21 points or 0.19 per cent lower at 11,194 points. 

Of 30 stocks on Sensex, 23 declined and the rest 7 advanced. HCL Tech (up over 4 per cent) ended as the top gainer on the index, followed by RIL (up 4 per cent) and Tech Mahindra (up over 3 per cent). On the flip side, Axis Bank (down over 3 per cent) emerged as the biggest loser. 

During the day, the index hit a high and low of 38,235.73 and 37,748.41, respectively.  

On a weekly basis, Sensex rallied 3 per cent while Nifty gained 2.68 per cent. 

Among individual stocks, Reliance Industries continued to soar and hit a new high of Rs 2,162.80 on the BSE. The market capitalisation of the company breached Rs 14 trillion today. The stock ended at Rs 2,146, up over 4 per cent on the BSE. READ MORE

Shares of Mphasis jumped over 14 per cent to Rs 1,118.70 on the BSE after the company’s April-June quarter (Q1FY21) earnings came in-line with Street estimate. Besides, signing of new deal worth $216 million deal in July 2020, in addition to the Q1 TCV declared wins worth $259 million, boosted sentiment. READ MORE

In the broader market, the S&P BSE MidCap index slipped 0.6 per cent to 13,702.55 while the S&P BSE SmallCap ended at 12,967, down 0.23 per cent. 

On the sectoral front, barring Nifty IT, all the other indices ended in the red. Nifty Bank declined 422 points or 1.83 per cent to 22,662 while Nifty Metal slipped over 2 per cent to 2,087.50 levels. Nifty IT, on the other hand, gained 1.4 per cent to 17,286 levels. 

Global markets

Global shares skidded further from five-month peaks on Friday as a bounce-back in European business activity did little to ease the jitters surrounding Sino-US tensions, while gold approached a record high.

European shares were on course for their worst day in a month, with the pan-region Euro Stoxx 50 down 1.9 per cent.

MSCI’s broadest index of Asia-Pacific shares outside Japan lost 1.9 per cent. Tokyo was closed for a holiday, but Nikkei futures were trading 1 per cent lower.

E-Mini futures for the S&P 500 edged down 0.8 per cent.

Oil prices edged higher, supported by a weaker dollar, though tensions between the United States and China weighed.

(With inputs from Reuters)

4:07 PM IST "In spite of negative global cues and profit booking at the beginning of trade, Indian indices overcame a negative start to finally end the day flat with a negative bias. Reliance Industries stock performance boosted the benchmark indices and helped limit further losses, while financials led the losses. The record virus infections in India have also unsettled investors, with its related delay in business and earnings recovery. Global markets were also affected on account of rising US-China tensions. Markets head into the weekend with this uncertainty in mind, after a quid pro quo from the Chinese government. Any further developments in this front will impact trade for next week".

3:44 PM IST

3:43 PM IST

3:41 PM IST The S&P BSE Sensex ended flat at 38,129, down 12 points while NSE's Nifty ended at 11,194, down 21 points or 0.19 per cent.

3:25 PM IST Shares of Reliance Industries hit a fresh record high of Rs 2,163, up 5 per cent on the National Stock Exchange (NSE) on Friday, after media reports said Amazon.com Inc is in talks to buy a 9.9 per cent stake in the company’s retail arm. With today’s gain, the stock has rallied nearly 150 per cent in the past three months from Rs 867, touched on March 23, 2020. READ MORE 

3:13 PM IST HDFC AMC Q1FY21 earnings were largely in-line. Revenues at Rs 4.1bn missed estimates, led by a sharp decline of equity share in the overall AUM. Though higher other Income and lower tax protected earnings with PAT being Rs 3.02bn. Focus is on diversifying fund management startegies to reduce the performance volatility of equity schemes across cycles and controlling opex in the near term. To further this, HDFC AMC hired 2-3 fund managers during the quarter. On the opex front, the company targets cost savings of Rs 350-400mn in FY21E. We like HDFC AMC given its opex efficiency, pan-India distribution network and continued market leadership. We maintain our P/E multiple at 36.0x to arrive at a TP of Rs 2,974. BUY.

3:02 PM IST One thing that everybody acknowledges today is the stellar contribution made by the telecom industry to keep India running during Covid-19 lockdown and after.   A nation of one billion connected 24x7 by seamless networks at the most affordable tariffs globally is no mean feat. And I take this opportunity to commend everyone across the telecom ecosystem – the operators and their partners, the government and the regulator for having made this possible.  READ MORE Sunil Bharti Mittal, Chairman, Bharti Enterprises

2:57 PM IST

2:52 PM IST

2:46 PM IST "Certainly as we get closer to the US election, the conflict between the US and China is going to increase and that impairs global trade, whichis going to be extremely important going forward, especially for emerging markets like India, Brazil, Mexico, which are going to be significantly impaired by the virus and need some source of demand to pull them out as they start opening up again," he said. READ MORE

2:39 PM IST Oil prices edged higher on Friday on the back of a weaker US dollar, although demand concerns stemming from rising coronavirus cases and escalating US-China tensions kept a cap on prices. The dollar slid to 22-month lows against a basket of currencies. A weaker dollar usually ups buying of commodities priced in the greenback, like oil, because they become cheaper for holders of other currencies. READ MORE

2:33 PM IST

LIVE UPDATES

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

"In spite of negative global cues and profit booking at the beginning of trade, Indian indices overcame a negative start to finally end the day flat with a negative bias. Reliance Industries stock performance boosted the benchmark indices and helped limit further losses, while financials led the losses. The record virus infections in India have also unsettled investors, with its related delay in business and earnings recovery. Global markets were also affected on account of rising US-China tensions. Markets head into the weekend with this uncertainty in mind, after a quid pro quo from the Chinese government. Any further developments in this front will impact trade for next week".

SECTOR WATCH:: Nifty IT ends in the red


MARKET AT CLOSE:: Losers and gainers on the S&P BSE Sensex


CLOSING BELL

The S&P BSE Sensex ended flat at 38,129, down 12 points while NSE's Nifty ended at 11,194, down 21 points or 0.19 per cent.

RIL surges 5% to hit fresh record high; market-cap crosses Rs 14 trillion

Shares of Reliance Industries hit a fresh record high of Rs 2,163, up 5 per cent on the National Stock Exchange (NSE) on Friday, after media reports said Amazon.com Inc is in talks to buy a 9.9 per cent stake in the company’s retail arm. With today’s gain, the stock has rallied nearly 150 per cent in the past three months from Rs 867, touched on March 23, 2020. READ MORE 


BROKERAGE VIEW:: Centrum Broking on HDFC AMC

HDFC AMC Q1FY21 earnings were largely in-line. Revenues at Rs 4.1bn missed estimates, led by a sharp decline of equity share in the overall AUM. Though higher other Income and lower tax protected earnings with PAT being Rs 3.02bn. Focus is on diversifying fund management startegies to reduce the performance volatility of equity schemes across cycles and controlling opex in the near term. To further this, HDFC AMC hired 2-3 fund managers during the quarter. On the opex front, the company targets cost savings of Rs 350-400mn in FY21E. We like HDFC AMC given its opex efficiency, pan-India distribution network and continued market leadership. We maintain our P/E multiple at 36.0x to arrive at a TP of Rs 2,974. BUY.

We are all charged up for the next 25 years: Bharti Airtel chairman

One thing that everybody acknowledges today is the stellar contribution made by the telecom industry to keep India running during Covid-19 lockdown and after.
 
A nation of one billion connected 24x7 by seamless networks at the most affordable tariffs globally is no mean feat. And I take this opportunity to commend everyone across the telecom ecosystem – the operators and their partners, the government and the regulator for having made this possible.  READ MORE
Sunil Bharti Mittal, Chairman, Bharti Enterprises

Sector Alert :: Metal stocks decline on weak global cues


SECTOR WATCH:: Nifty IT index's the only sectoral index trading in the green


US, China clash to impair global trade vital for India's reopening: Rajan

"Certainly as we get closer to the US election, the conflict between the US and China is going to increase and that impairs global trade, whichis going to be extremely important going forward, especially for emerging markets like India, Brazil, Mexico, which are going to be significantly impaired by the virus and need some source of demand to pull them out as they start opening up again," he said. READ MORE

Oil edges higher on weaker dollar, but demand threats from US China tension

Oil prices edged higher on Friday on the back of a weaker US dollar, although demand concerns stemming from rising coronavirus cases and escalating US-China tensions kept a cap on prices. The dollar slid to 22-month lows against a basket of currencies. A weaker dollar usually ups buying of commodities priced in the greenback, like oil, because they become cheaper for holders of other currencies. READ MORE

UPDATE :: S&P BSE Sensex gains 90 points


Result Tomorrow | ICICI Bank Q1 PAT may jump 60% YoY on stake sale in insurance arms

Darpin Shah, analyst tracking the sector at HDFC Securities, meanwhile, pegs the net profit marginally lower at Rs 2,900 crore, up 52 per cent YoY.
 
“We have factored in higher provisions (up 71 per cent YoY, albeit lower QoQ), as ICICI Bank proactively utilises the gains from stake sale in subsidiaries. Consequently, we expect the PAT to register a sharp 52 per cent YoY growth,” he wrote in a results preview note. READ MORE

UPDATE :: Market off lows


Stocks that hit 52-week high in an otherwise weak market today

COMPANY PRICE(rs) 52 WK HIGH CHG(%)
DEEPAK NITRITE 578.70 583.80 5.00
DIXON TECHNOLOG. 7672.45 7809.75 0.24
ESSEL PROPACK 204.35 216.60 1.21
GRANULES INDIA 292.85 294.25 4.48
HCL TECHNOLOGIES 666.30 667.85 2.09
» More on 52 Week High

Rupee Closing

Rupee settles lower at 74.83 per US dollar vs Thursday's close of 74.75/$

Gold poised for best week in over 3 months on soft dollar, stimulus bets

"The basic logic has to do with the introduction of further fiscal stimulus... in the European Union, and we're talking again about further fiscal stimulus in the United States," said DailyFx currency strategist Ilya Spivak.
 
"Interest rates are not really expected to go higher, and the likely response is seen as inflation." Gold tends to benefit from widespread stimulus measures from central banks as it is perceived as a hedge against inflation and currency debasement. READ MORE

Airtel Africa reports $57 mn profit, falling 53% in constant currency terms

Airtel Africa, an arm of India’s Bharti Airtel, on Friday posted profit after tax of $57 million for the quarter ended June 30, driven mainly by higher data consumption and usage of mobile wallet amid the coronavirus pandemic. However, the company’s profit was 53.6 per cent lower in constant currency terms than the corresponding period last year, when it had reported a profit after tax of $132 million in the same period, last year. READ MORE 


MARKET UPDATE:: JSW Steel slips 2% ahead of June quarter nos


MARKET CHECK


MARKET UPDATE:: BSE Midcap index trades in-line with Sensex, slips 0.7%


STOCK ALERT :: Granules India hits fresh record high


Moody's downgrades Hero FinCorp ratings; outlook revised to negative

The outlook has been revised to negative from ratings under review. Indian non-bank finance companies (NBFCs) are expected to be affected by the shock given the extensive disruptions to India's economic activity.
 
Today's rating action concludes the review for downgrade initiated on 13 April 2020, Moody’s said in statement. READ MORE

European markets trade weak


Syngene International rallies 13% in two days; stock nears record high

Shares of Syngene International moved higher by 8 per cent to Rs 472.50 on the BSE on Friday, thus rallying 13 per cent in the past two trading days after the company reported a better-than-expected operational performance in April-June quarter (Q1FY21). The stock of the pharmaceutical company was trading close to its all-time high level of Rs 474.75, touched on July 7, 2020. READ MORE

NEWS ALERT :: RBI allows Route One to hike stake in IndusInd Bank


SECTOR WATCH:: Metal stocks fade

COMPANY NAME LATEST HIGH LOW CHG(%)
S A I L 34.10 34.90 33.70 -2.99
HINDALCO INDS. 156.00 160.90 154.40 -3.67
VEDANTA 110.05 113.80 109.80 -3.38
JINDAL STEEL 166.45 171.10 165.60 -3.06
JSW STEEL 204.90 211.35 204.80 -2.17
Click here for the full list

NEWS ALERT :: Hero MotoCorp to invest Rs 83.99 crore in Ather Energy Pvt Ltd

>> Investment to be made through Compulsorily Convertible Preference Shares

>> Post this investment, the shareholding of Hero MotoCorp Ltd in Ather Energy Private Limited will increase from 35.10% (31.27% on a fully diluted basis) to 38.57% (34.58% on a fully diluted basis). 

(Via BSE filing)




Q1 early-bird results better than expected; IT, financial services do well

Early bird results for the June 2020 quarter hint at a better-than-expected showing by India Inc. The combined profit before tax (PBT) of the 95 companies that have declared results so far fell 8.6 per cent year on year (YoY), while their net profit and net sales were down 3.4 per cent each during the first quarter. READ MORE

'Too many unknowns': Localised Covid-19 lockdowns make MNC CEOs anxious

Some of the world’s top consumer goods companies, including Unilever, Coca-Cola, and PepsiCo, are worried about the impact of localised lockdowns in India on their business, even as the threat of community transmission of Covid-19 grows in the country. Kerala has confirmed community transmission in the state, despite the central government denying any signs of it in the country. READ MORE

Sun Pharma, Trent: 10 stocks that look bullish on moving average indicator

Broadly, three moving averages are considered while looking for short to medium-term trade. This includes 50-day moving average (DMA), 100-DMA, and 200-DMA. Among these, the 200-DMA is most applicable. It identifies the price movement from one year's perspective. Another way of analysing the trend is the position of the moving average. If one of the three averages show a strong rebound, then this may appear to be a major shift in the trend. READ MORE

Earnings visibility poor for next few quarters: Dy CIO of Nippon India MF

Consolidation driven by balance sheet strength is visible in virtually every sector of the market, says Sailesh Raj Bhan, deputy chief investment officer (CIO)–equity investments, Nippon India MF. In an interview with Ashley Coutinho, he says mid and small-caps look attractive from a 3-5 year perspective. READ MORE

Top losers on BSE at this hour

COMPANY PRICE(rs) CHG(%)
M & M FIN. SERV. 140.95 -5.15
FUTURE CONSUMER 9.50 -5.00
HERITAGE FOODS 306.85 -5.00
DISHMAN CARBOGEN 170.30 -4.99
FUTURE RETAIL 95.60 -4.97
» More on Top Losers

MARKET CHECK:: Sensex fails to recover from morning lows


INEOS Styrolution tanks 20% as promoter rejects delisting discovery price

“The promoter, namely INEOS Styrolution APAC Pte. Ltd., has decided to reject the discovered price of Rs 1,100 per equity share, determined pursuant to the book building process, and has also decided not to make any counter offer in terms of Regulation 16(1A) of the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009, as amended (“Delisting Regulations”),” ICICI Securities said on behalf of INEOS Styrolution India. READ MORE

BROKERAGE VIEW:: Centrum Broking on Crisil

CRISIL’s Q2CY20 overall results were a beat on the revenue front as all three segment revenues surprised positively though opex saw a sequential spike that led to a miss on consolidated PAT. Revenue beat was mainly led by research/ratings that rose by 17.6%/10.1% YoY. Excluding Greenwich, the research segment de-grew by 1.1%. Other income was down 1.0% YoY to Rs121mn (vs. est. of Rs172mn). Overall PAT for the quarter was a miss at Rs663mn that included Greenwich loss and excluding the same consolidated PAT was up 28.5% YoY. We like CRISIL owing to its global presence, strong parentage, diversified business profile, and geographic spread though recent price appreciation leaves limited upside. Change rating to ADD and raise TP to Rs 1,840.

BROKERAGE VIEW:: Edelweiss Securities on Trent

Trent provides a unique opportunity to invest in four brands—Westside, Zudio, Zara, and Star Bazaar. We continue to remain structurally positive on Westside as well as Zudio. Star Bazaar is also showing improving trajectory. Brand salience and robust balance sheet add further comfort. Maintain ‘BUY/SO’ with a SoTP-based TP of Rs 726. At CMP, the stock is trading at 38x FY22E EV/EBITDA.

BROKERAGE VIEW:: Prabhudas Lilladher on Rallis India

Rating: ACCUMULATE | TARGET PRICE: Rs 321

Despite weak topline growth, outlook on Rallis remains robust as it is on track for a healthy double-digit revenue CAGR. Domestic business growth is expected to be driven by new launches, the addition of new trade partners, relaxation in credit policies, the commencement of new capacity and a rosy outlook for domestic agrochemical industry. Similarly, International business growth is expected to be driven by capacity creation for Metribuzin (Phase 2). We roll forward to Sept’22 earnings, increase our EBITDA/APAT estimates for FY21 & FY22 by 8%/10% & 12%/9% and target multiple from 18x to 20x given better visibility of RALI being able to capitalise on the emerging opportunities. Maintain Accumulate rating with a revised target price of Rs 321 (Previous- Rs 246).

BROKERAGE VIEW:: YES Securities on Sterlite Technologies

RATING: SELL | TARGET PRICE: Rs 95

We expect revenues to be under severe pressure in FY21 as a major part of the order book would only be executed during FY22 and beyond. The recent drop in fibre prices (on already low base) in China tender would impact global fibre price to some extent. We expect margins to be in 18-20% range for STL in the near to medium term. We largely maintain our estimates for FY22 and retain our SELL rating on the stock with a 12m TP of Rs 95 (9x FY22 PE multiple). Weak offtake of products, pressure on fibre price, increasing contribution of low margin services business would impact performance.

BROKERAGE VIEW:: YES Securities on L&T

RATING: BUY | TARGET PRICE: Rs 1,203

While challenges for FY21 remain in terms of new orders, execution, and margins, we believe L&T is in a more favorable position than peers in a constrained liquidity environment. We like L&T as, i) Over 80% of the NIP (opportunity: Rs102trn over FY20-25) is addressable by L&T which makes it the best play on the government's planned uptick in Infra spending, ii) Market share gain in difficult times by leveraging its strong balance sheet, iii) Strong geographical diversification. Our FY21/FY22 earnings estimates remain largely unchanged as an 8%/4% increase in EBITDA estimates offset by an increase in finance & depreciation expenses. Retain BUY rating with SOTP based TP of Rs 1,203 given its inexpensive valuations (Trades at 1yr forward EV/EBITDA of 13x vs long term avg. of 14x), healthy order book (book/bill ~2.2x) & proven diversified execution capability.

BROKERAGE VIEW:: ICICI Securities on HDFC AMC

RATING: BUY | TARGET PRICE: Rs 3,000

As HDFC AMC is the market leader, a faster decline of market share compared to industry pace does not bode well. Thus, a market share revival remains the key focus area, going forward. However, as HDFC AMC has been able to build a strong brand franchise due to strong parentage and delivered consistent returns in the past, it deserves a premium valuation. Given business model with least credit risk, long term growth potential and strong fundamentals, we remain positive on the stock. Thus, we maintain our target price at Rs 3,000/share and BUY recommendation on the stock.

SBI Cards stock sees investor interest revival on hopes of faster recovery

The stock of SBI Cards and Payment Services (SBI Cards), which was hit by the pandemic-led market crash after its listing in March, has seen a revival in investor interest. With expectations of a faster recovery in business, it has recovered 27 per cent and is approaching its initial public offering (IPO) price of Rs 755. READ MORE

Silver may test all-time high of Rs 75,000 a kg this year, say experts

This comes as investors look for a hedge against a possible rise in inflation as countries roll out stimulus packages in the wake of the Covid-19 pandemic. A weak US dollar and lower yields are also supporting prices, as escalating tensions between the two economic powerhouses are encouraging investors to buy US bonds. READ MORE

Sebi allows OFS, rights entitlement transactions during trading window

Under market norms, listed companies need to use a trading window to monitor transactions by designated persons in a bid to prevent insider trading.
 
The compliance officer is responsible for closing the trading window, in case the designated persons are expected to be in possession of unpublished price sensitive information. READ MORE

Mphasis rallies 9% on in-line June quarter earnings, new deal win

Shares of Mphasis rallied 9 per cent to Rs 1,072 on the BSE on Friday after the company’s April-June quarter (Q1FY21) earnings came in-line with Street estimate. Besides, signing of new deal worth $216 million deal in July 2020, in addition to the Q1 TCV declared wins worth $259 million, boosted sentiment. In constant currency terms, the company’s revenues fell 4.6 per cent quarter on quarter (QoQ) to $305 million. READ MORE

Asian Paints shares slip 2% ahead of Q1FY21 result; here's what to expect

Shares of Asian Paints fell as much as 2 per cent on the BSE on Friday ahead of its June quarter results for the fiscal year 2020-21 (Q1FY21), due later in the day. At 10:06 am, the stock was quoting over 1 per cent lower at Rs 1,707.65 on the BSE. It hit a high and low of Rs 1,727 and Rs 1,691.50, respectively so far in the trade. In comparison, the S&P BSE Sensex was trading 0.55 per cent lower at 37,929 levels. READ MORE

Most active stocks by volume

COMPANY PRICE(rs) CHG(%)
VODAFONE IDEA 8.43 -1.86
TRIDENT 7.14 4.69
TATA MOTORS 104.50 -1.46
BANK OF MAHA 12.52 5.48
IDFC FIRST BANK 28.05 2.94
» More on Most Active Volume

Earnings visibility poor for next few quarters: Dy CIO of Nippon India MF

Consolidation driven by balance sheet strength is visible in virtually every sector of the market, says Sailesh Raj Bhan, deputy chief investment officer (CIO)–equity investments, Nippon India MF. In an interview with Ashley Coutinho, he says mid and small-caps look attractive from a 3-5 year perspective. READ MORE

Sector Alert :: RIL lifts S&P BSE Energy index

>> At 10:30 am, the index was at 6,307 level, up 154 points or 2.51%


India's biggest firm by m-cap | Reliance Ind + RIL-partly paid m-cap tops Rs 14 trillion-mark

>> At 10:19 am, RIL-fully paid shares values Rs 13,52,607 crore in m-cap, while RIL-PP valued Rs 54,425 crore
 

Sun Pharma up 4% as US arm's Taro Pharma resolves antitrust investigation

Shares of Sun Pharmaceutical Industries were up 4 per cent to Rs 496 in the early morning trade on the BSE on Friday after its US subsidiary, Taro Pharma reached a settlement agreement with the US Department of Justice (DoJ), Antitrust and Civil divisions to pay more than $200 million to settle the generic drug price fixing allegations against the company. READ MORE

Rupee Opening

Rupee opens lower at 74.94 per US dollar vs Thursday's close of 74.75/$

Reliance Industries extends gain, up 4% now


Economic recovery in India hinges on moratorium duration: Chris Wood

“A critical question for the banks, the property market and indeed the economy is now whether the moratorium is extended yet again. Still until proven otherwise, investors should probably assume that the moratorium will be extended for another four months to the end of the calendar year,” Wood said. READ MORE

PNC Infratech jumps 9% after bagging two EPC projects worth Rs 1,548 crore

The bids for these contracts were submitted in January this year and opened in March.
 
Chinese firm Jiangxi Construction had emerged as the lowest bidder. The bids submitted by Jiangxi Construction, however, have been annulled after the government decided to restrict Chinese companies in India, according to a Business Standard report. READ MORE

Covid in India | Total cases reach 1.28 million


Commodity heatmap :: Gold hits record high on MCX, breaches Rs 50,800-mark on the upside


HDFC Bank dips over 1%

>> The RBI has asked HDFC Bank to provide details of an internal investigation into allegations of improper lending practices in its vehicle-financing operation, reports Bloomberg


Result Impact | ABB India slides 3% on 76% YoY decline in net profit

>> ABB India reported about 76% decline in net profit at ₹16.75 crore for the June quarter, mainly due to lower revenues. The company's net profit stood at ₹69.74 crore in the quarter ended June 30, 2019, it said in a regulatory filing.


PNC Infratech surges 6%

>> PNC Infratech on Thursday said it has won two highway contracts, part of Delhi-Vadodara Expressway, worth Rs 1,547.80 crore from National Highways Authority of India (NHAI).


Zensar Tech trades flat

>> Zensar Technologies on Thursday posted a 6.9 per cent decline in net profit to Rs 73.3 crore for June 2020 quarter. It had reported a profit of Rs 78.7 crore in the year-ago period, Zensar Technologies said in a statement.


Sun Pharma zooms 4% in a weak market

>> Taro Pharmaceuticals Ltd, a subsidiary of Sun Pharma, has resolved all cases involving the company in connection with the multi-year investigations by the Department of Justice, Antitrust Division and Civil Division into the US generic pharmaceutical industry.


Wipro trades flat with a positive bias

>> IT major Wipro on Thursday said it will acquire 4C, one of the largest Salesforce partners in the UK, Europe and Middle East, for 68 million euros (about Rs 589 crore).


STOCK ALERT :: Reliance Industries hits fresh record high, tops Rs 2,100-mark


Sectoral trends on NSE :: Pharma index outperforms


Sensex Heatmap :: SBI, ICICI Bank top drags; Sun Pharma top gainer


Opening Bell


Opening Bell


Result Today | ITC's FMCG segment to cushion overall nos; PAT may dip 30% YoY

The company's fast-moving consumer goods (FMCG) and personal care verticals, analysts say, may perform better as the lockdown kept people indoors, thereby, boosting the demand for ready-to-eat/cook food items, and personal hygiene products such as soaps and sanitisers. READ MORE

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


Markets at Pre-open


Markets at Pre-open


Stocks to watch: RIL, Asian Paints, ITC, Biocon, Wipro, Mphasis, Lupin

RIL: Amazon.com Inc is in talks to buy a 9.9 per cent stake in the retail arm of Indian conglomerate Reliance Industries Ltd, ET Now reported on Thursday, citing sources.
 
ITC: The diversified conglomerate is slated to release its June quarter results later in the day. KR Choksey Securities expects ITC's top line (sales/revenues) to decline 26.9 per cent year-on-year (YoY) and 26.4 per cent quarter-on-quarter (QoQ) to Rs 8,407 crore.
 
Other earnings: Besides ITC, 70 other companies are expected to announce their June quarter results later in the day. The list includes names such as Asian Paints, JSW Steel, and Ambuja Cements. READ MORE 


BROKERAGE VIEW :: Motilal Oswal Financial Services on Jindal Steel and Power

CMP: Rs 172 | TP: Rs 226 (+32%) | Reco: Buy

With JSP booking significant exports in 1HFY21 and an expected improvement in domestic demand in 2HFY21, we expect the company to achieve ~10% volume growth in FY21. We expect JSP to achieve ~10% EBITDA CAGR over FY20–22E to INR95.6b, driven by an expected 8% volume CAGR.

We expect JSP to reduce its net debt by INR83b (INR81/share) over FY20–22E to INR296b (incl. acceptances) through strong FCF generation, led by higher EBITDA and lower capex. We expect JSP to refinance its overseas debt maturities (~USD800m). This would elongate the debt repayment schedule, thereby reducing the strain on standalone cash flows.

Reiterate Buy, with an SOTP-based TP of INR226, based on 5.0x FY22E EBITDA for the Steel business and DCF valuation for the Power business. At CMP, the stock trades attractively at 4.5x FY22E EV/EBITDA for the Steel business.

BROKERAGE VIEW :: Motilal Oswal Financial Services on Mphasis

CMP: Rs 980 | Reco: Neutral

The company announced new TCV wins of USD259m in 1QFY21 in Direct International. This is the highest ever TCV win for a quarter for Mphasis and comprises one large deal win of over USD100m TCV. ~79% of the deal wins during the quarter are into new gen services. We await further clarity on the outlook on DXC and margins in the earnings call tomorrow. Maintain Neutral. 

BROKERAGE VIEW :: Motilal Oswal Financial Services on AU Small Fin Bank

CMP: Rs 757 | Reco: Buy

AUBANK reported strong earnings, led by robust treasury performance and controlled opex, even as it prudently made additional COVID19 provisions and improved PCR to 64%. Also, sharp decline in the moratorium book, decline in SMA numbers, and improving collection trends eased concerns around asset quality. However, we remain watchful of recovery trends over the near term. On the business front, deposit growth has held strong, which, along with other measures, has enabled the bank to maintain strong surplus liquidity and LCR of 150%. 

BROKERAGE VIEW :: Motilal Oswal Financial Services on L&T

CMP: Rs 916 | TP: Rs 1,080 (+18%) | Reco: Buy

Despite a weak outlook on revenue and margins in FY21E, we do not see FCF for the core E&C business turning negative from hereon. This is because we expect
the company to choose working capital management over revenue growth.

L&T’s results suggest a tough macro environment for the Construction industry and likely survival challenges for debt-ridden companies. We expect L&T to emerge stronger in the post-COVID-19 era and further consolidate its market share in the Indian Construction industry.

While challenges related to order inflows, execution, and working capital cannot be completely ruled out yet, L&T has demonstrated a good show in mitigating such risks thus far. Building in further conservatism, we cut our EPS estimates by 4–5% over FY21/FY22 and TP to INR1,080 (prior: INR1,120). Adj. for valuations of subsidiaries (we apply 20% holding company discount to market cap of 4- listed entities), the core business has underperformed Nifty by ~20% since the 4QFY20 results (June first week). In our view, current valuations provide limited downside risks from hereon. Maintain Buy

BROKERAGE VIEW :: Motilal Oswal Financial Services on Trent

CMP: Rs 590 | TP: Rs 620 (+5%) | Reco: Downgrade to Neutral

Trent’s relative balance sheet strength has resulted in sharp stock outperformance despite near-term earnings headwinds. While its superior execution and healthy
balance sheet do warrant premium valuations, the current challenging environment and weak disposable incomes could impact discretionary spend, leading to prolonged earnings recovery. We estimate FY21 revenue/EBITDA decline of 10%/25% (despite the recent strong footprint addition) before recovery would set in
over FY22. We value Westside and Zara at 35x EV/EBITDA (five-year average multiple and 25% premium to our retail universe given its better execution and
balance sheet) and Star at 1x EV/sales on FY22E. Thus, we arrive at TP of INR620, leaving limited upside. Subsequently, we downgrade to Neutral from a Buy rating.

Bata India, McDowell: Stocks that Nilesh Jain of Anand Rathi is bullish on

BUY BATAINDIA | TARGET Rs 1,370 | STOP LOSS: Rs 1,280
 
The stock is on the verge of a breakout from a downward sloping trend line which is placed at 1,324. It is also taking the support of its short term 21-DMA which is placed at 1,300 levels. The MACD has provided fresh buy crossover on the daily chart. The momentum indicator RSI is also making a higher highs and higher lows from the lower levels, which hints that the current rally is likely to continue further. READ MORE

Here's a derivative strategy on Apollo Hospitals by HDFC Securities

Buy Apollo Hospitals 1,540 Call at Rs 45 & simultaneously sell 1,600 call at Rs 23
 
Lot Size: 500
 
Cost of the strategy: Rs 22 (Rs 11,000 per strategy)
 
Maximum profit: Rs 19,000 If Apollo Hospital closes at or above 1,600 on Jul expiry)
 
Breakeven Point: Rs 1,562 READ MORE

Outlook on Gold, Silver and Crude by Bhavik Patel of Tradebulls Securities

Gold bulls are in a rush to make all time high in COMEX. Gold is sustaining above $1850 and is very near to all time high of $1920. In all other currencies, gold is trading at all time high. In short term, prices are overbought so any short term or intra-day traders should wait for any meaningful correction before entering the market and investors with horizon of 2-3 years can buy from current levels too. In MCX, next target comes around Rs 52000 where gold will see some pullback as it has rallied one way in relative short period of time. READ MORE

Bulk deals on NSE as on Thursday

Bulk deals on BSE as on Thursday

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


Rupee check

Source: Bloomberg


Oil rises on weaker dollar, but virus woes and US-China tensions weigh

>> Oil edged up on Friday as the dollar fell to an almost two-year low, although demand concerns stemming from rising coronavirus cases and U.S.-China tensions kept a lid on prices.

>> Brent crude rose 15 cents, or 0.4%, to $43.46 a barrel, and U.S. West Texas Intermediate (WTI) crude rose by 12 cents, or 0.3%, to $41.19.

(Source: Reuters)

SGX Nifty hints at a gap-down start

>> At 8:18 am, the index was at 11,162.50 level, down 54.85 points or 0.49 per cent

Asia trades lower

Source: Reuters


Wall Street closes sharply lower on tech selloff

Source: Reuters


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