Indices gain for 2nd day in a row, Sensex up 429 pts; India VIX drops 6%

Topics Markets | Coronavirus | Abbott India

Volatility index, India VIX, declined nearly 6 per cent to 26.50 levels.
The Indian benchmark indices gained over one per cent on Thursday, lifted by a rally in auto and IT stocks.

The S&P BSE Sensex climbed 429 points or 1.2 per cent to settle at 35,844 levels. The index had breached the level of 36,000 in intra-day for the first time since March 11. The broader Nifty50 index settled at 10,552, up 122 points, or 1.17 per cent. Volatility index, India VIX, declined nearly 6 per cent to 26.50 levels. 

Mahindra & Mahindra (up 6 per cent) ended as the top Sensex gainer, followed by Titan and HCL Tech. IT stocks made decent gains in the trade. The stocks have surged up to 9 per cent in the past one week after Accenture came out with better-than-expected financial results for the quarter ended May 2020. READ MORE

Sectorally, most indices on the NSE ended in the green. While Nifty Auto rallied nearly 3 per cent to 6,907 levels, the Nifty IT index gained 2.65 per cent to 15,122.55 levels. On the other hand, Nifty Bank and Nifty Realty indices ended flat with negative bias. 

The broader market, too, participated in the rally. The S&P BSE MidCap gained 1 per cent while S&P BSE SmallCap index ended 0.92 per cent higher.

Global markets

World stocks rose for a fourth straight day on Thursday as encouraging coronavirus vaccine trials kept investors’ spirits up ahead of what was expected to be a record rebound in US jobs figures later.

All major Asian indexes had been upbeat. Japan’s Nikkei rose only fractionally, but China’s blue-chip index added 2 per cent and Hong Kong’s Hang Seng jumped 2.8 per cent as investors brushed off concerns over sweeping new security laws introduced by Beijing.

In commodities, oil prices rose as a sharp drop in oil stockpiles outweighed concerns that a spike in US coronavirus infections and revived lockdown measures in California could stall recovery in fuel demand.

(With inputs from Reuters)

4:00 PM IST "The Indian indices traded in sync with global cues and ended the day with gains. The gains were supported by IT and Auto indices. Global indices were positive following news of encouraging trials of a vaccine being developed for the virus. Global markets are awaiting US employment figures, due out later today, to see the progress of the US economy and its resultant impact on global economic growth. Indian benchmark indices have sustained their momentum while upsides seem to be limited. Investors are advised to watch out for any signs of trend reversal and keep booking short-term profits."

3:44 PM IST

3:42 PM IST

3:36 PM IST The S&P BSE Sensex climbed 429 points or 1.2 per cent to end at 35,844 while NSE's Nifty settled at 10,552, up 122 points or 1.17 per cent.

3:27 PM IST

3:20 PM IST Our assumptions factor slightly higher production estimates coupled with IndAS impact on other expenses which drives an increase in EBITDA by +3.5/+1.5% for FY21/22E. However, PAT still sees a sharp decline of 14.2/8.6% because of higher depreciation and interest costs coupled with lower other income than our earlier estimates.  Maintain ADD

3:07 PM IST

3:06 PM IST NSE’s index services subsidiary, NSE Indices Limited has today launched two more indices under the Nifty BHARAT Bond Index series.   The BHARAT Bond Index series follows a unique Target Maturity Date structure wherein each index in the series measures the performance of a portfolio of AAA rated bonds issued by government owned entities maturing in a specific year. The following two new indices have been launched today within the Nifty BHARAT Bond Index series: Nifty BHARAT Bond Index - April 2025   Nifty BHARAT Bond Index - April 2031   In Dec 2019, NSE Indices had launched the first two indices in the BHARAT Bond Index series with maturities in April 2023 and April 2030.   “The BHARAT Bond ETFs, tracking the Nifty BHARAT Bond Index series, have been successful in increasing retail participation in corporate bond market with more than 50000 retail investors participating in the first two ETFs launched in December 2019. NSE is glad to continue working with Department of Investment and Public Asset Management (DIPAM), Government of India, Edelweiss AMC and other stakeholders in launching more indices within the unique BHARAT Bond Index series that will be tracked by the upcoming tranches of BHARAT Bond ETF” said Mr. Vikram Limaye, MD & CEO, NSE. (Source: NSE press release)

2:58 PM IST COMPANY PRICE(rs) 52 WK HIGH CHG(%) BAYER CROP SCI. 6150.00 6166.90 2.93 GUJARAT GAS 320.80 330.00 -1.75 IDBI BANK 48.20 48.20 4.90 JUBILANT LIFE 678.80 697.00 2.18 NAVIN FLUO.INTL. 1677.20 1728.55 -0.88 » More on 52 Week High

2:55 PM IST The lower oil and gas realisations, sharp jump in operating expenses, higher than expected DD&A (depletions, depreciation & amortization) expenses and impairments caused by the coronavirus outbreak hurt the company’s earnings.   The company’s crude realisations at $49 a barrel during the March quarter were 20.9 per cent lower year-on-year ($61.93 a barrel during year-ago quarter). The gas prices at $3.23 per mmmbtu (metric million British thermal unit) too were lower by about 4 per cent year-on-year. READ MORE

2:48 PM IST Medium and Heavy Commercial Vehicles (M&HCV) volumes dropped nearly 92 per cent YoY during the first quarter of Financial Year 2020-21 and Light Commercial Vehicles (LCV) volumes plunged 87 per cent YoY.   Tata Motors, India’s largest CV maker, said domestic volume in the first quarter of the financial year dropped nearly 90 per cent to 9,274 units from 94,934 units during the same period last year. The company did not share monthly volumes. READ MORE

2:40 PM IST In the management commentary, Accenture on Friday, June 26 said it expects a decline in IT budgets due to the weak economic growth outlook. However, spends on digital transformation will increase, offset by lesser spend on running operations. Accenture will transform run operations providing cost savings, which will be invested back into digital transformation. READ MORE 

LIVE UPDATES

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

"The Indian indices traded in sync with global cues and ended the day with gains. The gains were supported by IT and Auto indices. Global indices were positive following news of encouraging trials of a vaccine being developed for the virus. Global markets are awaiting US employment figures, due out later today, to see the progress of the US economy and its resultant impact on global economic growth. Indian benchmark indices have sustained their momentum while upsides seem to be limited. Investors are advised to watch out for any signs of trend reversal and keep booking short-term profits."

SECTOR WATCH:: Here's how sectoral indices on the NSE performed today


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


CLOSING BELL

The S&P BSE Sensex climbed 429 points or 1.2 per cent to end at 35,844 while NSE's Nifty settled at 10,552, up 122 points or 1.17 per cent.

MARKET CHECK


BROKERAGE VIEW:: Centrum Broking on ONGC

Our assumptions factor slightly higher production estimates coupled with IndAS impact on other expenses which drives an increase in EBITDA by +3.5/+1.5% for FY21/22E. However, PAT still sees a sharp decline of 14.2/8.6% because of higher depreciation and interest costs coupled with lower other income than our earlier estimates.  Maintain ADD

ALERT :: Dow Jones Futures climb nearly 400 pts


NSE Indices launches Nifty BHARAT Bond Indices - April 2025 & April 2031 series

NSE’s index services subsidiary, NSE Indices Limited has today launched two more indices under the Nifty BHARAT Bond Index series.
 
The BHARAT Bond Index series follows a unique Target Maturity Date structure wherein each index in the series measures the performance of a portfolio of AAA rated bonds issued by government owned entities maturing in a specific year. The following two new indices have been launched today within the Nifty BHARAT Bond Index series:
  • Nifty BHARAT Bond Index - April 2025
  •  
  • Nifty BHARAT Bond Index - April 2031
 
In Dec 2019, NSE Indices had launched the first two indices in the BHARAT Bond Index series with maturities in April 2023 and April 2030.
 
“The BHARAT Bond ETFs, tracking the Nifty BHARAT Bond Index series, have been successful in increasing retail participation in corporate bond market with more than 50000 retail investors participating in the first two ETFs launched in December 2019. NSE is glad to continue working with Department of Investment and Public Asset Management (DIPAM), Government of India, Edelweiss AMC and other stakeholders in launching more indices within the unique BHARAT Bond Index series that will be tracked by the upcoming tranches of BHARAT Bond ETF” said Mr. Vikram Limaye, MD & CEO, NSE.

(Source: NSE press release)

Stocks that hit 52-week high on BSE today

COMPANY PRICE(rs) 52 WK HIGH CHG(%)
BAYER CROP SCI. 6150.00 6166.90 2.93
GUJARAT GAS 320.80 330.00 -1.75
IDBI BANK 48.20 48.20 4.90
JUBILANT LIFE 678.80 697.00 2.18
NAVIN FLUO.INTL. 1677.20 1728.55 -0.88
» More on 52 Week High

Limited gains for ONGC as coronavirus crisis, oil price spat continue

The lower oil and gas realisations, sharp jump in operating expenses, higher than expected DD&A (depletions, depreciation & amortization) expenses and impairments caused by the coronavirus outbreak hurt the company’s earnings.
 
The company’s crude realisations at $49 a barrel during the March quarter were 20.9 per cent lower year-on-year ($61.93 a barrel during year-ago quarter). The gas prices at $3.23 per mmmbtu (metric million British thermal unit) too were lower by about 4 per cent year-on-year. READ MORE

Commercial vehicle sales lag as coronavirus outbreak pulls down economy

Medium and Heavy Commercial Vehicles (M&HCV) volumes dropped nearly 92 per cent YoY during the first quarter of Financial Year 2020-21 and Light Commercial Vehicles (LCV) volumes plunged 87 per cent YoY.
 
Tata Motors, India’s largest CV maker, said domestic volume in the first quarter of the financial year dropped nearly 90 per cent to 9,274 units from 94,934 units during the same period last year. The company did not share monthly volumes. READ MORE

IT shares extend gain; Infosys rallies 9%, TCS surges 7% in one week

In the management commentary, Accenture on Friday, June 26 said it expects a decline in IT budgets due to the weak economic growth outlook. However, spends on digital transformation will increase, offset by lesser spend on running operations. Accenture will transform run operations providing cost savings, which will be invested back into digital transformation. READ MORE 


Prospective investors indicate appetite for YES Bank FPO at discount

During roadshows, investors said they were keen to invest in the FPO. Considering the huge bad debt saddled with the bank, they would be able to invest at a significant discount to the current market price. On Wednesday, the YES Bank stock closed at Rs 26.95 a share. READ MORE

Hero MotoCorp surges 5%, hits over 7-month high as June sales jump 4x MoM

The two-wheeler bellwether on Wednesday posted a 27 per cent year-on-year decline in wholesale dispatches for June at 4.5 lakh units. The company’s volumes jumped four-fold on a sequential basis from 112,692 units in May. The company said that much of the demand is being supported by rural and semi urban areas. While wholesale dispatches are at around 90 per cent of pre Covid levels, retail volumes are at 60 per cent of pre-Covid levels currently, it said. READ MORE 

Rupee closing

Rupee ends higher at 75.01/$ vs Wednesday's close of 75.59 against the US dollar

MARKET UPDATE:: Sensex at day's high


MARKET CHECK:: Top 6 losers on the BSE at this hour


Goldman Sachs sees oil demand returning to pre-coronavirus levels by 2022

Goldman Sachs said on Thursday a pick-up in commuting, a shift to private transportation and government efforts to improve economies with higher infrastructure spending should help global oil demand return to pre-coronavirus levels by 2022.
 
Demand is expected to fall by 8 per cent this year, before rebounding 6 per cent in 2021 and fully recovering to pre-pandemic levels by 2022, the US bank said in a note. READ MORE

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


Moody's extends review for downgrade on Hero FinCorp's Baa3 rating

Rating agency Moody's has extended its review for downgrade on Hero FinCorp Ltd’s (HFL) Baa3 local and foreign currency issuer ratings. It did the rating review on April 13, 2020. The expectation was that the company's asset quality will deteriorate on the back of rising loan delinquencies and defaults. Some customers and businesses will struggle with payments as earnings decline due to the economic disruption of the coronavirus outbreak, said the rating agency. READ MORE

European indices trade higher in early deals


ICICI Securities on autos

The Jun’20 demand trends are positively impacted by pent-up demand release which has likely been accentuated by demand related to marriages in North India (Apr’20-May’20 marriage dates was lost due to lockdown and as per Hindu calendar Jun’20 marked the end of key auspicious dates for CY20). Thus extrapolation of Jun’20 retail recovery trends into upcoming months might be flawed. The data emerging in July’20/Aug’20 months would provide a clearer retail demand structure.

Edelweiss on Voda-Idea

The sheer magnitude of the implications of the potential AGR judgment creates a perceived bankruptcy overhang, thereby delaying potential liquidity. We believe that an early resolution of the issue would help IDEA monetise its Indus Towers stake and the fibre business. The matter is sub judice and in the final stages, but one cannot be certain on the timeline of the verdict. A further increase in tariff would help reduce leverage greatly, but the company must ensure 4G subscribers stay on its network.

Anand Rathi on J Kumar Infraprojects

While the Covid-19 impact is amply visible in J Kumar’s Q4, it is only expected to be more pronounced in FY21. With an urban-focused OB lowering any hopes of a quick revival in operations (labour still wary of urban areas), H1 is likely to be a washout and H2 becomes critical for any respectable performance in FY21. The OB provides ample assurance (insulating it from any immediate awarding lull), and the balance sheet too is in shape. The return of migrant labour holds the key. The issue seems more than priced in; hence, we retain our Buy rating

Edelweiss on consumer goods sector

We expect demand to accelerate for packaged foods (biscuits, noodles), staples (atta, pulses, coffee, tea), premium edible oil, health & hygiene (mosquito repellants), nutrition (chyawanprash, honey, HFDs) and naturals. On the other hand, personal care (skin care, hair care, hair colour) are likely to disappoint in the near term. COVID-19 has triggered a strong shift away from street/outside food to in-home consumption, which will largely flow to leader brands as they have higher consumer trust and perceived quality. Almost all other categories are reviving and will accelerate from Q2FY21. From a Q1FY21 perspective, best way to play this is through Britannia, Nestle and Godrej Consumer (GCPL). From a six-nine months’ perspective, we add HUL and Dabur to this list

MARKET CHECK :: Sensex near day's high


GVK Power declines 5% on report ED probes promoters for money laundering

Shares of GVK Power and Infrastructure were locked in the 5 per cent lower circuit band, at Rs 3.23 apiece, on the BSE on Thursday after reports said the Enforcement Directorate (ED) is set to charge promoters of the GVK Group of companies for alleged money laundering after the Central Bureau of Investigation (CBI) accused them of alleged irregularities to the tune of Rs 705 crore in running the Mumbai airport. READ MORE

Rising share of arbitrage funds in futures segment weighing on returns

The rising share of arbitrage funds in the futures segment is making it difficult to generate optimum returns. Such funds now account for over half of the futures’ segment open interest (OI).
 
According to data collated by Capitalmind, arbitrage funds accounted for 51 per cent of single-stock futures’ OI at the end of June, when total futures contracts for the near-month had an OI of Rs 93,663 crore. READ MORE

ITC, Balmer Lawrie, SKF India: Time to bet on high dividend yield plays?

The market recovery since the March 2020 low has mostly been fueled by liquidity and positive news flow in select counters. While Reliance Industries (RIL) gained ground on the stake sale in its telecom venture, Jio Platform, to marquee investors, investors have also rewarded stable corporate performance in the March 2020 quarter amid Covid-19 pandemic. In times such as these, investors also bank upon stocks of companies that pay a higher dividend. READ MORE

Infosys and HDFC contribute the most to Sensex's rally today


MARKET UPDATE:: Sensex extends gain


Liquidity and asset quality risks for Indian NBFI to continue, says Fitch

India's non-bank financial institutions (NBFI) will continue to face near-term risks related to liquidity and asset quality though economic activity is picking after a nationwide lockdown to contain the coronavirus pandemic, said Fitch Ratings on Thursday. The risks reflect the impact of the pandemic on borrowers' repayment capabilities, as well as the effects of the moratorium on collections, Fitch said in a statement. READ MORE

BASF India extends gain after completing sale of construction chemicals biz

Shares of BASF India jumped 8 per cent to Rs 1,280 on the BSE on Thursday. The stock has gained 13 per cent in two days after the company completed the sale of its construction chemicals business to Master Builders Solutions for a consideration of Rs 595.16 crore. The stock of the specialty chemicals company was trading close to its 52-week high level of Rs 1,327, touched on July 3, 2019. READ MORE 


MARKET UPDATE :: S&P BSE Capital Goods index trades in the green; BHEL top gainer


NEWS ALERT :: Axis Bank cuts base rate by 35 bps


MARKET CHECK :: Nifty Bank index turns negative


Street cheers Emami's plan to cut pledged shares

Despite weaker-than-expected March 2020 quarter (fourth quarter, or Q4) results, the stock of Emami has gained nearly 12 per cent since its Q4 analysts’ call on Monday, outperforming the sub-1 per cent rise on the Nifty FMCG index over the same period. The expected decline in pledged promoter shareholding, as indicated by the company management, enthused the Street. READ MORE

Morningstar downgrades two HDFC Mutual Fund's equity schemes to 'silver'

While the fund’s ability to make a comeback after hitting a trough was taken into account, the grading note also observed that the risk in strategy had also risen steadily.
 
According to data from Value Research, HDFC Top 100 fund is down 21 per cent in a one-year period, as against 11.45 per cent dip in the BSE 100 total return index. HDFC Equity Fund is down more than 23 per cent in the same period, as against a 10.9 per cent dip in BSE 500 total return index. READ MORE

BROKERAGE VIEW:: JM Financial on Kirloskar Oil Engines

RATING: BUY | TARGET PRICE: Rs 135

We were positively surprised due to lower-than-expected contraction vs Cummins India domestic business (-22%) and sequential improvement in margins. Slowdown in domestic construction activity and commercial real estate are hampering engine sales, but a healthy momentum in sales towards agriculture sector (30% of consolidated sales) are likely to offset the decline to some extent. Turnaround in the electric pumps business, healthy balance sheet and inexpensive valuations of 4.3x FY22 EV/E make risk reward favourable. Maintain BUY with our SOTP-based TP of Rs 135.

BROKERAGE VIEW:: Centrum Broking on Petronet LNG

RATING: ADD | TARGET PRICE: Rs 270

Prospects remain robust for PLNG with strong demand trajectory coupled with commissioning of 2.5mt capacity at Dahej and ramp up in utilisation at Kochi terminal
post commissioning of Kochi Mangalore pipeline in Jul’20. Having said that, higher competition from new terminals and record low spot LNG prices to create pressure on utilisation for PLNG unless renegotiation with RasGas succeeds. With the renewed uncertainty on tellurian investment amount, we see limited triggers from here despite comfortable dividend yield of ~5%. ADD.

BROKERAGE VIEW:: Centrum Broking on Abbott India

RATING: BUY | TARGET PRICE: Rs 18,500

The core leading brands for AIL have been posting growth upwards of 15%, and our understanding is this growth rate would sustain in near future post the pandemic environment as well. We expect company to post revenue growth ahead of IPM 2-3%, including the new launches support as well. A focussed drive to improve the operational efficiencies, cost reduction and positive product mix would result in margin improvement. Considering the pandemic scenario, we have cautiously lower our earnings for FY21E and FY22E as of now by 10% and 5% respective. At CMP of Rs 15737, the stock trades at 45.9x FY21E EPS of Rs 343 and 37.1x FY22E EPS of Rs 424. Key risks to our call include slowdown of the domestic pharma market and the company’s additional brand coming under price control.

BROKERAGE VIEW:: HDFC Securities on Auto sector

With the country opening up in a phased manner and with more relaxation norms in place, we expect sales to improve considerably for 2W OEMs and for entry-level cars. Sales should improve (improve over 2x from May levels) for Maruti, Hero.
 
Sector stance:
  • Hero (BUY) and Maruti Suzuki (BUY) are our top picks as these OEMs are most likely to benefit from downtrading trends and from rural demand. We reiterate our BUY on Escorts as it will benefit from its extended relationship with Kubota/normal monsoons. We have a cautious stance on premium discretionary (Eicher) and CVs (Ashok Leyland).
  • We expect pent-up demand in the entry/executive segment as consumers are down-trading. This demand will also be driven by a shift toward personal mobility. Hero Motocorp’s MD, Mr Pawan Munjal has highlighted that the OEM is witnessing daily retail sales of ~16k-18k units.
  • Also, a media report recently highlighted, Maruti Suzuki is returning to 100k units p.m. production levels from Jul-20 onwards (vs. ~20k units in May-20). This production target indicates a much faster than expected recovery in vols.
  • Tractor sales in Jun-20 may show a strong recovery owning to robust rabi harvest, timely arrival of the monsoon to aid Kharif sowing, and government reforms.

BROKERAGE VIEW:: Edelweiss Securities on Ahluwalia Contracts

Ahluwalia Contracts (ACIL) reported 14% YoY top-line growth in Q4FY20 despite COVID-19 disrupting billings. PAT plunged 80% YoY to Rs 61mn due to the Rs 270mn provision against dues from customers. While the order book remains robust at nearly Rs 75bn (~4x TTM revenue), the pandemic is likely to: i) constrain execution in the near term given limited labour availability (25% of pre-lockdown levels); and ii) lead to deferment of execution to FY22. We have cut earnings for FY21E by 89%; at the same time, we have raised FY22E earnings by 33%. Maintain ‘BUY’ with a revised TP of Rs 265 (Rs 198 earlier) while rolling forward the valuation to September 2021E.

BROKERAGE VIEW:: Prabhudas Lilladher on S Chand and Company

Rating: ACCUMULATE | CMP: Rs 45 | TP: Rs 57

S Chand’s performance was disappointing in a seasonally strong quarter as Covid-19 led to a revenue loss/spillover of Rs1.6-1.8 bn. While cost rationalisation efforts resulted in savings of Rs 792 mn in FY20; OCF generation at Rs 486 mn was below expectations of Rs 1.2 bn as lockdown impacted collection efforts and led to inventory pile up. Given the uncertain timeline regarding start of the upcoming academic year, full recovery of revenue spillover from FY20 appears difficult. As a result, we have cut our revenue/PAT estimates for FY21 by 22%/38% and for FY22 by 14%/27% respectively (NEP would lay foundation for strong growth in FY22 and hence quantum of cut is lower). While there are near term growth challenges 1) clearly outlined cost reduction program (~10-20% cost rationalisation expected in FY21) 2) opportunity from digital (9% contribution in FY20 to rise to 20-25% in 3 years) 3) healthy BS (debt of Rs2.1bn; aiming to be debt free in 3 years) and 4) attractive valuations makes S Chand an attractive bet. We thus maintain our ACCUMULATE rating with a TP of Rs 57 (earlier Rs 67) effectively valuing the stock at 3.5x FY22 EPS. 

BROKERAGE VIEW:: ICICI Securities on HDFC Bank

RATING: BUY | TARGET PRICE: Rs 1,379

HDFC Bank with CET-1 capital of 16.4% and contingency buffer of 45 bps has enough loss absorption capacity in such pandemic phase. However, of late, there was news about HDFC Bank planning to tap Rs100-130bn through fresh equity raise (QIP + ADR issuance) implying 2-3% equity dilution, will shore up CET-1
further by 100-130bps to 17.5% plus, will be book value accretive by 5% and at the same time will not be too earnings or RoE dilutive. Also, on the cost front, the bank has been agile in consistently bringing down cost to assets by >40 bps and we believe it still has further buffer to manage it by 15-20bps to cushion any earnings volatility.

IDBI Bank's market-cap crosses Rs 50,000 cr, stock surges 51% in 2 weeks

IDBI Bank on Thursday entered the coveted Rs 50,000 crore market capitalisation club after its share price hit a fresh 52-week high on the BSE. The stock was locked in the upper circuit band for the seventh straight day, up 5 per cent at Rs 48.20. It has surged 51 per cent in the past two weeks on the BSE. Following the sharp rally on the counter, the bank’s market capitalisation (market-cap) jumped to Rs 50,034 crore, higher by Rs 16,920 crore, from Rs 33,114 crore on June 18, 2020.  READ MORE

All you wanted to know about the ADX indicator

The Average Direction Index (ADX) is a widely used technical analysis indicator that helps one gauge the strength of a trend, be it upward or downward. It determines the core strength of a trend.
 
The ADX is derived from two accompanying indicators, known as the Positive Directional Indicator (+D) and the negative Directional Indicator (-D).  READ MORE

Despite a better Q4, higher debt, AGR case weigh on Vodafone Idea stock

Despite a better-than-expected performance in the March quarter, led by tariff increases in December, the Vodafone Idea stock shed over 4 per cent on Wednesday. This is because, despite the improvement on the operational front, the Street is concerned about the increase in debt, overhang of the adjusted gross revenue (AGR) issue, and reduction in subscriber levels. READ MORE

Pfizer up 8.5%; parent firm's potential Covid-19 drug shows positive result

Shares of Pfizer India jumped 8.5 per cent to Rs 4,313.4 apiece on the BSE on Thursday after the company's US-arm said that one of its Covid-19 vaccines showed encouraging results in very early testing of 45 people. At 9:50 am, the stock was ruling 5 per cent higher at Rs 4,176.85 on the BSE, as against 365 points, or 1 per cent, gain in the benchmark S&P BSE Sensex. READ MORE

Rupee opening

Rupee opens higher at 75.50/$ vs Wednesday's close of 75.59 against the US dollar

NEWS ALERT | Axis Bank board approves raising up to Rs 15,000 crore: Exchange filing

-- Fundraising through issue of equity shares/depository receipts and/or any other instruments or securities

Top gainers on BSE in early deals

COMPANY PRICE(rs) CHG(%)
RAIL VIKAS 20.55 8.73
RITES 279.30 8.70
PFIZER 4215.00 6.05
APL APOLLO TUBES 1715.00 5.97
DILIP BUILDCON 287.40 5.84
» More on Top Gainers

Rail-related stocks rally; RITES, Rail Vikas Nigam surge over 10%

Shares of rail-related stocks rallied up to 14 per cent in the early morning trade on the BSE on Thursday on the report that the Railways has started the process to invite private players in passenger train operations. The project would entail a private sector investment of about Rs 30,000 crore, it said. The stock of RITES rallied 14 per cent to Rs 293, while Rail Vikas Nigam Limited (RVNL) surged 13 per cent on the BSE. Ircon International was up 10 per cent at Rs 99, followed by Indian Railway Catering and Tourism Corporation (IRCTC) - up 7 per cent at Rs 1,463 and BEML by 3 per cent at Rs 649. READ MORE

Most active stocks by volume

COMPANY PRICE(rs) CHG(%)
VODAFONE IDEA 10.25 0.89
FUTURE CONSUMER 15.35 -4.95
RAIL VIKAS 20.55 8.73
SUZLON ENERGY 5.62 4.85
ASHOK LEYLAND 49.20 2.07
» More on Most Active Volume

Eveready Industries zooms after announcement of March quarter results


Banks, NBFCs gain as govt approves Special Liquidity Scheme


Broader markets outperform headline indices


Tata Motors gains 1% post June sales update


ABB Power Products and Systems trades flat with positive bias

>> Hitachi has completed the merger of its joint venture power business unit with ABB Power Grids, known as Power India, a statement said on Wednesday.


Pfizer rallies over 5% as early trials for Covid-19 vaccine in the US shows positive results


RITES jumps 9% as Centre invites pvt players to invest


Sectoral trends on NSE at Open


Top gainers and losers on the S&P BSE Sensex at Open


Opening Bell


Opening Bell


June Auto Sales :: Bajaj Auto's total 2W sales dip 27% YoY


Stocks to watch: ABB Power Products, Tata Motors, Ashok Leyland, Coal India

ABB Power Products: Hitachi has completed the merger of its joint venture power business unit with ABB Power Grids, known as Power India, a statement said on Wednesday.
 
Tata Motors on Wednesday reported 81.78 per cent dip in its total sales at 25,047 units in the first quarter ended June 30, 2020. The company had sold 1,37,545 units in the April-June quarter of 2019-20.
 
Oil India, Engineers India: As per news reports, an Oil India Ltd and Engineers India Ltd-led consortium will buy 48% stake in the Bharat Petroleum Corporation Ltd's subsidiary, Numaligarh Refinery Ltd (NRL). READ MORE 


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


Markets at Pre-open


Markets at Pre-open


BROKERAGE VIEW :: Motilal Oswal Financial Services on Telecom

Bharti Airtel: We value Bharti at an EV of INR4,931b using SOTP-based TP of INR710/share. We assign EV/EBITDA of 12x to the India business and 6x to the Africa business on FY22E basis. Even without factoring in incremental tariff hikes (supported by 4G offtake), Bharti may generate post-interest FCF of INR230b in FY22E, which should be utilized for spectrum renewals and deleveraging. Strong FCF, improving RoCE and the noise surrounding the incremental price hikes may garner better valuation.
 
RJio: We value RJio’s EV at INR5,823b and TP of INR885/share by assigning 13x EV/EBITDA multiple on FY22E. Clearly, RJio’s dream performance in the last four years and recent deals at exorbitant valuations reflect its strong earnings growth potential over the next 2-3 years. We expect EBITDA to double over FY20-22E.

VIL: VIL’s fate is dependent on the AGR case resolution as a positive outcome may provide it with a new lease of life. However, >50% price hike and potential EBITDA of INR250b may leave limited incremental opportunity for equity holders, assuming 8x EV/EBITDA, INR1.2t net debt and additional INR510b AGR liability. With continued subscriber churn and incremental network investment requirements, the company may be faced with a tall task ahead.

BROKERAGE VIEW :: Motilal Oswal Financial Services on Automobiles

Top picks: M&M and EIM (large-cap), MSS (mid-cap)
 
While demand recovery has surprised everyone, sustenance remains a key monitorable. With multiple moving parts in the form of (a) normalization of supply side, (b) consumer sentiment, (c) availability of finance, and (d) impact of BS6 cost inflation, demand normalization is the biggest monitorable.

Valuations are reflecting recovery from 2HFY21, leaving limited margin of safety for any negative surprises. Hence, we prefer companies with (a) higher visibility in terms of demand recovery, (b) a strong competitive positioning, (c) margin drivers, and (d) balance sheet strength. 

BROKERAGE VIEW :: Motilal Oswal Financial Services on HDFC

CMP: Rs 1,835 | TP: Rs 2,150 (+17%) | Reco: Buy

>> HDFC is among the few companies that have delivered a steady performance in an otherwise cyclical sector. In addition to its disciplined growth, we like its lean cost structure, competitive advantage on borrowings (leading to a lower-risk book), and the ability to resolve stressed corporate exposures. Given its strong asset quality and high capitalization, net NPLs account for just 8% of core networth (excluding investments in subsidiaries). Its subsidiaries have also outperformed peers in their respective segments.

>> While the current stock price reflects the near-term issues impacting the economy, it undervalues the company’s long-term potential. As stability returns gradually with the staggered unlocking of the economy, we expect HDFC to re-rate faster than peers with comfortable liquidity and capital situation.

BROKERAGE VIEW :: CLSA on Marico

Downgrades to 'Underperform', Target price: Rs 350

>> Execution will be the key to avoid negatives

>> Value-end positioning in hair oil to help fight demand pressure

>> Co's near-term guidance seems reasonable

>> 13-15% growth will depend of portfolio diversification execution

>> Near-term headwinds to keep valuations in check

BROKERAGE VIEW :: CLSA on IT services

Top picks: HCL Tech, Infosys

>> Investors should focus on outlook rather than results

>> See limited relevance of headline financials in Q1FY21

>> Focus should be on order booking, revenue decline

>> Cost-structure deflation would be long-term positive

>> Expect 5-8% QoQ decline in $ revenue for large players in Q1

BROKERAGE VIEW :: Morgan Stanley on Financials

>> Most NBFCs should be eligible for special liquidity scheme

>> Scheme could help take out tail risk by averting default

>> Suggested duration, however, is very short. Will only help in the short-term

>> Requirement of investment grade could prove to be restrictive

Top trading ideas by CapitalVia Global Research: Buy SBI, Varun Beverages

Nifty traded with positive sentiments on firm global cues; Likely to face resistance at 10,500
 
Markets traded with positive sentiment on Wednesday on firm global cues. Banking and financial stocks rallied sharply, gaining momentum through short-covering which helped the index post a close above 10,400, which looks promising for the bulls. Nifty managed to close at 10,430, adding 127.90 points. Private Banks, PSU Banks and financial stocks closed on a positive note, whereas realty and Pharmaceutical stocks closed in the red. Nifty bank closed at 21,977.60, adding 498.65 points from the previous day’s closing. READ MORE

Bulk deals on BSE as on Wednesday

Bulk deals on NSE as on Wednesday

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


Rupee check

Source: Bloomberg


Oil prices slip on demand fears as US virus cases surge

>> Oil prices dipped on Thursday after the United States recorded its biggest one-day spike in coronavirus cases and California reimposed some lockdown measures, stoking worries a resurgence in COVID-19 cases will stall a recovery in fuel demand.

>> US West Texas Intermediate (WTI) crude futures fell 10 cents, or 0.3%, to $39.72 a barrel, trimming a 1.4% rise from Wednesday.
 
>> Brent crude futures eased 6 cents, or 0.1%, to $41.97 a barrel, after rising 1.8% in the previous session.

(Source: Reuters)

SGX Nifty points at positive start for markets

>> At 8:11 am, the index was at 10,476 level, up 77 points or 0.76 per cent.

Asian stocks set to track US gains but Hong Kong jitters weigh

Source: Reuters


S&P, Nasdaq close higher on vaccine hopes, improving data

Source: Reuters


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