Sensex up 273 pts; Bharti Airtel up 7%, Voda Idea dips 13% post AGR verdict

Traders monitor BSE index at a brokerage firm, as the Sensex goes down, in Mumbai | PTI
The domestic stock market retreated from day's high but still settled in the positive territory on Tuesday amid buying in FMCG, auto, and metal counters. Telecom stocks were in focus after the Supreme Court ruled that telecom companies will be allowed 10 years for staggered payment of adjusted gross revenue (AGR) dues.

The apex court said the 10-year payment timeline will begin from April 1, 2021. Moreover, the telecom companies will have to pay 10 per cent of the dues by March 31, 2021. READ MORE

The S&P BSE Sensex ended at 38,900.80, up 273 points, or 0.71 per cent with Bharti Airtel (up over 6 per cent) being the top gainer and ONGC (down over 3 per cent) the biggest loser. NSE's Nifty ended at 11,470, up 83 points or 0.73 per cent. India VIX declined over 5 per cent to 21.67 levels.

Shares of Vodafone Idea settled nearly 13 per cent lower at Rs 8.89 on the BSE after the Supreme Court's decision on the AGR case. The company had sought 15 years to pay its AGR dues, including spectrum usage charge, license fee, interest, penalty, and interest on the penalty. 

In the broader market, the S&P BSE MidCap index ended over 1 per cent higher at 14,832 levels while the S&P BSE SmallCap index ended at 14,413, up 77 points, or 0.54 per cent. 

Sectorally, Nifty IT ended in the red - down 0.64 per cent to 17,814 levels, with 6 out of 10 constituents declining. On the other hand, Nifty Metal index rallied the most - up over 3 per cent to 2,496.75 levels, followed by Nifty Pharma - up over 2 per cent. 


4:15 PM IST "Indian markets exhibited heightened volatility today following the publishing of GDP data and SC ruling in the AGR case for telecom companies. Global cues were positive following Chinese factory data which indicated demand increasing. Liquidity, driven by high FII inflows in August, has provided good support for the markets, in spite of general concern regarding high valuations in some sectors and stocks. The market is expecting a slow uptick in economic activity which has resulted in stock-specific moves, where there is earnings visibility. Investors need to be prepared to handle volatility in the near term."

3:43 PM IST

3:42 PM IST

3:36 PM IST The S&P BSE Sensex ended 273 points or 0.7 per cent higher at 38,901 levels while NSE's Nifty ended at 11,470, up 83 points or 0.73 per cent. 

3:26 PM IST India's electricity generation fell for the sixth straight month in August, provisional government data showed, driven by a slump in power use in industrial western states such as Maharashtra and Gujarat in the second half of the month. August power generation fell 0.9%, a Reuters analysis of daily load despatch data from federal grid operator POSOCO showed, slower than the 1.8% decline seen in July. READ MORE

3:19 PM IST

3:10 PM IST In a last ditch effort to save the company from going to liquidation, the promoters of Videocon Industries have sought a debt restructuring package which would result in banks getting back Rs 33,400 crore from the company over the next few years. The company was sent to the National Company Law Tribunal (NCLT) for debt resolution in December 2017 and has almost shut operations. READ MORE

3:01 PM IST The AGR verdict is quite positive for Bharti Airtel as it has got 10 years to pay the spectrum charges out of which it needs to pay only 10% upfront. Bharti has already provided for Rs 47,000 cr in its books hence there should no negative impact on P&L going forward. Impact if any could be positive on any reversal of provision. As per our estimates the company should be generating healthy free cash flows from FY21 onwards and in this context annual AGR payment of Rs 4400-4700 cr should not be an issue. We remain quite optimistic on Bharti Airtel with a price target of Rs 710 The Supreme Court verdict is not as beneficial to Vodafone Idea as it is to Bharti Airtel. Vodafone was looking forward for a 20 year payment cycle which has now reduced to 10 years. Out of the total AGR dues of Rs 58,000 cr Vodafone Idea has paid only Rs 7,900 cr till now. Considering the high annual interest, depreciation and amortization cost the annual AGR dues could put further strain on the cash flows of the company. However, if there is across the board increase in tariffs by the three players then it could provide reprieve to Vodafone Idea in future. In regards to the spectrum obligation of insolvent companies the Supreme Court has referred the matter to NCLT. In worst case there could be further liability on Reliance Jio and Bharti Airtel who have taken the spectrum from Reliance Communication, Videocon and Aircel. After the Supreme Court verdict the hangover of AGR case is removed and going forward we need to watch how telecom operators increase tariffs.

2:56 PM IST The slump in overall power consumption has narrowed to just 0.85 per cent in August at 110.57 billion units (BU) amid considerable rise in economic activities and raised hopes that it would surpass normal level this month. READ MORE

2:47 PM IST The world’s largest sovereign wealth fund The Government Pension Fund Global sold 9.5 million shares, representing 1.75 per cent stake of Future Retail at Rs 158.61 per share on the NSE, bulk deal data show. The sovereign wealth fund held 12.35 million shares, or 2.28 per cent stake in the company at the end of June, shareholding pattern data revealed. The name of the buyers was not ascertained immediately. READ MORE

2:38 PM IST

2:31 PM IST Procter & Gamble Hygiene & Health Care’s (P&G Hygiene) June 2020 quarter (Q4) results surprised the Street with strong profits, despite Covid-led disruptions. Yet, the stock has shed 1.2 per cent since the result was announced on Tuesday last week. READ MORE

LIVE UPDATES

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

"Indian markets exhibited heightened volatility today following the publishing of GDP data and SC ruling in the AGR case for telecom companies. Global cues were positive following Chinese factory data which indicated demand increasing. Liquidity, driven by high FII inflows in August, has provided good support for the markets, in spite of general concern regarding high valuations in some sectors and stocks. The market is expecting a slow uptick in economic activity which has resulted in stock-specific moves, where there is earnings visibility. Investors need to be prepared to handle volatility in the near term."

SECTOR WATCH:: Nifty IT slips over 0.6%


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


CLOSING BELL

The S&P BSE Sensex ended 273 points or 0.7 per cent higher at 38,901 levels while NSE's Nifty ended at 11,470, up 83 points or 0.73 per cent. 

India's power output falls for sixth straight month in August, show data

India's electricity generation fell for the sixth straight month in August, provisional government data showed, driven by a slump in power use in industrial western states such as Maharashtra and Gujarat in the second half of the month. August power generation fell 0.9%, a Reuters analysis of daily load despatch data from federal grid operator POSOCO showed, slower than the 1.8% decline seen in July. READ MORE

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


Videocon Industries promoters seek debt recast package from lenders

In a last ditch effort to save the company from going to liquidation, the promoters of Videocon Industries have sought a debt restructuring package which would result in banks getting back Rs 33,400 crore from the company over the next few years. The company was sent to the National Company Law Tribunal (NCLT) for debt resolution in December 2017 and has almost shut operations. READ MORE

Expert View :: Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities on AGR Verdict

The AGR verdict is quite positive for Bharti Airtel as it has got 10 years to pay the spectrum charges out of which it needs to pay only 10% upfront. Bharti has already provided for Rs 47,000 cr in its books hence there should no negative impact on P&L going forward. Impact if any could be positive on any reversal of provision. As per our estimates the company should be generating healthy free cash flows from FY21 onwards and in this context annual AGR payment of Rs 4400-4700 cr should not be an issue. We remain quite optimistic on Bharti Airtel with a price target of Rs 710

The Supreme Court verdict is not as beneficial to Vodafone Idea as it is to Bharti Airtel. Vodafone was looking forward for a 20 year payment cycle which has now reduced to 10 years. Out of the total AGR dues of Rs 58,000 cr Vodafone Idea has paid only Rs 7,900 cr till now. Considering the high annual interest, depreciation and amortization cost the annual AGR dues could put further strain on the cash flows of the company. However, if there is across the board increase in tariffs by the three players then it could provide reprieve to Vodafone Idea in future.

In regards to the spectrum obligation of insolvent companies the Supreme Court has referred the matter to NCLT. In worst case there could be further liability on Reliance Jio and Bharti Airtel who have taken the spectrum from Reliance Communication, Videocon and Aircel. After the Supreme Court verdict the hangover of AGR case is removed and going forward we need to watch how telecom operators increase tariffs.

Power consumption almost at normal, slump narrows to just 0.85% in Aug

The slump in overall power consumption has narrowed to just 0.85 per cent in August at 110.57 billion units (BU) amid considerable rise in economic activities and raised hopes that it would surpass normal level this month. READ MORE

Future Retail hits 10% lower circuit after rallying 38% in 3 sessions

The world’s largest sovereign wealth fund The Government Pension Fund Global sold 9.5 million shares, representing 1.75 per cent stake of Future Retail at Rs 158.61 per share on the NSE, bulk deal data show. The sovereign wealth fund held 12.35 million shares, or 2.28 per cent stake in the company at the end of June, shareholding pattern data revealed. The name of the buyers was not ascertained immediately. READ MORE

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


Pricey valuation pull down P&G Hygiene stock despite strong Q4 results

Procter & Gamble Hygiene & Health Care’s (P&G Hygiene) June 2020 quarter (Q4) results surprised the Street with strong profits, despite Covid-led disruptions. Yet, the stock has shed 1.2 per cent since the result was announced on Tuesday last week. READ MORE

Voda Idea in danger of becoming a 'zombie' telco; may just about survive

The Supreme Court order brings some clarity to the telecom sector. The telcos will have to pay their AGR dues over a period of 10 years with the payment being made every February. The stock market reaction so far has been positive in terms of the Bharti Airtel stock rising, and negative for the Vodafone Idea stock, which has fallen sharply. READ MORE

Rupee Closing

Rupee ends stronger at 72.86 per US dollar vs Monday's close of 73.61/$

Decoded: Why Sebi's new margin pledge norms have rattled brokerages

Many are expecting the trading volumes to come down in the cash segment. This has less to do with the new pledging system and more to do with the new margin norms. Under the new margin norms, Sebi has virtually put an end to excessive leverage trades. The regulator has directed brokers to collect higher margins from their client. READ MORE

HAL extends decline after govt's 15% stake sale; stock tanks 26% in 4 days

Shares of Hindustan Aeronautics (HAL) were under pressure for the fourth straight day, down 6 per cent to Rs 871 on the BSE in the intra-day trade on Tuesday after the government sold nearly 15 per cent stake in the aerospace and defence company through a public offering of shares (OFS). READ MORE 


AUGUST AUTO SALES | Eicher Motors total Royal Enfield sales down 5% YoY at 50,144 units


IDFC First, IndusInd Bank: AGR verdict will not dent earnings, say experts

The Supreme Court on Tuesday allowed Vodafone Idea and Bharti Airtel 10 years time to pay their outstanding adjusted gross revenue (AGR) dues, starting April 2021. The apex court asked telcos to pay 10 per cent of their dues as "upfront payment" by March 31, 2021. Remaining instalments will need to be paid on February 7 every year. READ MORE

SC to decide on extending moratorium on repayment of loans tomorrow

The Centre and the Reserve Bank of India informed the Supreme Court on Tuesday that the moratorium on repayment of loans is extendable to two years in certain conditions, and that the sectors most distressed by the economic slowdown are being identified. "We are in the process of identifying the distressed sectors to vary benefits as per the impact of the hit they have taken,” the Solicitor General Tushar Mehta told the three-judge bench, headed by Justice Ashok Bhushan. READ MORE

Expert View :: V K Vijaya Kumar, Chief Investment Strategist at Geojit Financial Services on AGR Verdict

The SC verdict giving a ten year time frame for payment of AGR dues with 10 percent upfront payment can be regarded as reasonably fair.  Since the SC has not said anything about the dues of R Com, Aircel and Videocon, this is certainly very positive for Reliance Jio and Bharti Airtel.  However, the 10-year time frame puts a question mark on the survival of Vodafone. Indian telecom industry moving to a virtual duopoly is not a desirable development. 
 
For the stock market the verdict is mixed. Since it is positive for Bharti and RIL these two heavy weight stocks are likely to remain resilient, supporting the markets. Vodafone’s woes, apart from impacting the stock, will also impact the stocks of banks which have lent to Vodafone

AUGUST AUTO SALES | Ashok Leyland reports total sales of 6,325 units, down 31% YoY

-- Domestic sales at 5,824 units, down 30% YoY

-- M&HCV sales dip 52% YoY to 2,589 units

STOCK UPDATE:: Bharti Infratel erases day's losses


MARKET UPDATE:: Sensex at day's high


AUGUST AUTO SALES | M&M reports auto segment sales of 30,426 units, down 16% YoY

-- M&M's August tractor sales at 24,458 units, up 65% YoY

Voda Idea slips 25% from day's high; Airtel up 6% post SC AGR verdict

Shares of Vodafone Idea (VIL) slipped 20 per cent to Rs 8.16, down 25 per cent from intra-day’s high of Rs 10.95 on the BSE after the Supreme Court (SC) allowed 10 years for staggered payment of adjusted gross revenue (AGR) dues. The stock trades in the futures & option (F&O) segment, which has no circuit limits.At 12:11 pm, it was trading 18 per cent lower at Rs 8.39, as compared to 0.80 per cent rise in the S&P BSE Sensex. READ MORE

Voda Idea, Bharti Airtel: Strategies for telecom stocks post AGR verdict

BSE Telecom Index: Until the telecom index does not conquer its first resistance levels of 1,270 levels, the upside is capped. The daily chart shows a “Lower high, lower low” formation, which reflects a sell on rise strategy. The next resistance is 1,310 for the index and looks difficult to cross as things stand. Over the next few sessions, there are chances that the index may drift towards 1,170 levels as the overall sentiment in the telecom sector remains subdued. READ MORE

SC gives telcos 10 yrs to clear AGR dues, NCLT to decide on spectrum sale

The Supreme Court in its judgment in the matter of adjusted gross revenue allowed telcos to pay their outstanding dues in 10 years. Telcos can pay 10 per cent of their dues by March 31, 2021, and the remaning instalments by 7 February every year. Any default will accrue interest and non-payment will also invite contempt of court proceedings, said the SC in its verdict. The companies have been ordered to keep adjusting bank guarantees alive till the time the payment is made. READ MORE

Heatmap: S&P BSE Sensex gainers and losers at this hour


BROKERAGE VIEW:: HDFC Securities on Banks

While non-food credit growth sustained at 6.7% YoY (6.7% in June), its drivers changed significantly. Industrial credit growth slowed to 0.8% YoY, from 2.2% in June, and personal loan growth increased to 11.2% YoY (vs. 10.5% YoY in June). Service credit growth dipped 60bps from June levels to 10.1% YoY. Agri credit growth improved 300bps MoM to 5.4% YoY. The slight increase in personal loan growth and sustenance of the pace of service credit growth are promising, but it remains to be seen whether these trends are sustainable, especially after repayments/ collections increase as the moratorium ends.

Vodafone Idea tanks 15% post AGR verdict


Nifty PSU Bank index dips 2% post AGR verdict


Bharti Airtel surges 5.5% post AGR verdict


AGR Verdict impact:: IDFC First Bank slips nearly 5%


AGR Verdict :: Managing Director to give the undertaking to comply with the schedule

>> Existing bank guarantee given to be kept alive and

IDFC First Bank down 2% post AGR Verdict


IndusInd Bank turns red


Vodafone Idea down 9%


AGR Verdict:: Agree that whether spectrum sale can be allowed under IBC is to be decided by NCLT, says SC

>> Have requested NCLT to decide as per law

Essel Propack soars 13% on heavy volume; stock nears record high

The stock is trading close to its record high of Rs 319 touched on August 21, 2020. The counter has seen huge trading volumes with a combined around 379,000 equity shares changing hands on the NSE and BSE till the time of writing of this report. READ MORE

AGR verdict likely today; Voda Idea up nearly 3.5%


STOCK ALERT :: IndiaMART IndiaMESH hits 52-week high


Zensar Tech gains 4.5% on grant of US patent for ZenVerse

Zensar Technilogies shares gained 4.5 per cent to quote at Rs 180.3 on the BSE on Tuesday after the company was granted a US patent for its direct conversation platform, ZenVerse. The patent, granted by the US Patent and Trademark office (USPTO), is on the idea of ZenVerse which is designed to be a direct platform or channel for the entire organization to interact with the organisation’s leadership including CEO, CXOs. READ MORE

Maruti Suzuki shares rise 2% on 17% YoY jump in August sales

Shares of Maruti Suzuki rose as much as 2.63 per cent to Rs 7,018 on the BSE on Tuesday after the carmaker's sales in August grew 17 per cent on a year-on-year (YoY) basis to 1.24 lakh units. Sequentially, sales grew 15.3 per cent. Total sales include domestic sales of 115,325 units and 1,379 units for other original equipment manufacturer (OEMs). In addition, the Company exported 7,920 units in August 2020, a drop of 15.3 per cent over August 2019, the company said in an exchange filing. READ MORE

BROKERAGE VIEW:: ICICI Securities on Time Technoplast

We believe EBITDA level profit with better gross margin despite revenue loss for almost a month is encouraging. Further, marginal debt reduction via positive CFO of Rs 36 crore, curtailed capex in FY21, focus on collection may keep overall D/E below 0.5x. We maintain a HOLD rating on the stock with a revised target price of Rs 47 considering its market leadership position in the industrial packaging segment and a strong client base.

Biocon shares up 6% after Co launches insulin glargine in US market

Shares of Biocon rallied 6 per cent to Rs 397 on the BSE on Tuesday after the company’s subsidiary Biocon Biologics India and its partner Mylan N.V. launched insulin glargine injection under the brand Semglee in the US market. Biocon Biologics India and Mylan have launched the product in vial and pre-filled pen presentations in the US. It is approved to help control high blood sugar in adult and pediatric patients with type-1 diabetes and adults with type-2 diabetes, Biocon subsidiary said in a press release. READ MORE 


Top gainers on BSE at this hour

COMPANY PRICE(rs) CHG(%)
ESSEL PROPACK 288.85 6.74
SCHNEIDER ELECT. 84.65 5.42
ECLERX SERVICES 737.40 4.82
CRISIL 1833.65 4.63
REC LTD 111.05 4.57
» More on Top Gainers

NEWS ALERT :: Manufacturing PMI posts first expansion in four months, comes in at 52 in August

>> Indian manufacturers signalled a rebound in production volumes and new work in August, according to the latest PMI data. The upturn was led by an improvement in customer demand as client businesses reopened, after lockdown restrictions eased amid the coronavirus disease 2019 (Covid-19).

>> Output and new orders expanded at the fastest paces since February. Meanwhile, job cuts continued into August, extending the current sequence of decline to five months.

>> At 52.0 in August, the headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) rose from 46.0 in July and signalled an improvement in operating conditions across the manufacturing sector following four consecutive months of contraction

>> For the first time since March, output expanded in the Indian manufacturing sector in August. Production growth was largely driven by greater client demand for Indian goods following the resumption of business operations, according to firms.

Bharti Infratel zooms 5% as Board okays Indus Tower merger; Voda Idea up 8%

Vodafone Idea has decided to cash out by selling its 11.15 percent stake in Indus. The move comes ahead of the Supreme Court's verdict in the AGR case. The apex court is scheduled to pronounce its decision on the staggered payment timeline at 11:30 am today.
 
"The above is basis cash consideration chosen by Vodafone Idea Limited (VIL) for its 11.15 per cent shareholding in Indus which will be based on 60 days VWAP as at Closing date (and agreed closing adjustments). Based on today’s calculation the cash consideration comes to approximately Rs 4,000 crore, it said in a statement. READ MORE

MARKET UPDATE:: Sensex off day's high


Escorts surges 5% as tractor sales grow 80% YoY in August

Shares of Escorts gained 5 per cent to Rs 1,143 on the BSE on Tuesday after the company reported a strong 80.1 per cent year-on-year (YoY) jump in tractor sales in the month of August, 2020. The company’s Agri Machinery Segment (EAM) sold 7,268 tractors, its highest-ever August sales. It had sold 4,035 tractors in August 2019. On month-on-month (MoM) basis, the volume was up 36.6 per cent, Escorts said in a statement. READ MORE

Rupee Opening

Rupee opens higher at 73.23 per US dollar vs Monday's close of 73.61/$

Aug Auto Sales :: Maruti Suzuki sales up 17% YoY


L&T, BEML, Tata Power rise on Rs 2,580 crore deal with Defence Ministry

L&T shares were also in focus after the engineering conglomerate on Monday announced completion of the sale of its electrical and automation (E&A) business to Schneider Electric. The deal was first announced in May 2018. Valued at Rs 14,000 crore, it is one of L&T’s biggest divestment so far in value terms. READ MORE 


Future Retail tumbles 9% in early deals


Nifty Metal index up 2%


Biocon advances 4%

>> Biotechnology major Biocon’s subsidiary Biocon Biologics and partner Mylan have launched insulin glargine injection, under the brand name Semglee, in the US market, said the Bengaluru-based company on Monday.


JK Cement dips 1.4% post Q1 nos


Vodafone Idea jumps as Co to get Rs 4,000 cr post Bharti Infratel-Indus Tower deal


Bharti Infratel surges 3% on Indus Tower merger


BEML up around 4% on defence order


Escorts gains over 3% post August sales figure


Sectoral trends on NSE at Open


Sensex Heatmap at this hour


Opening Bell


Opening Bell


Aug Auto Sales :: Escorts posts 79% YoY rise in domestic tractor sales


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


Markets at Pre-open


Top stocks to watch out for today

BEML, Tata Power, L&T: The Defence Ministry has signed contracts worth Rs 2,580 crores with Indian companies to supply six Army regiments with Pinaka missiles. The Acquisition Wing, Ministry of Defence signed contracts with Bharat Earth Movers Ltd (BEML), Tata Power Company Ltd (TPCL), and Larsen & Toubro (L&T) on August 31, a statement from the ministry said.

JK Cement: JK Cement Ltd on Monday reported a 62.25 per cent decline in consolidated net profit at Rs 49.94 crore for the first quarter ended June 2020 as company's operations and business performance was impacted due to lockdown. 
 
Bharti Infratel: Bharti Infratel Board, on Monday, approved the company's merger with Indus Tower. READ MORE  


Expert View :: Naveen Kulkarni, Chief Investment Officer at Axis Securities on Q1 GDP

A Sharp contraction in Q1FY21 GDP, a drop by 23.9 vs expected fall of 20%, has been due to strictest lockdown compared to other Pandemic affected countries. This is on the expected line as most of the high frequency indicators (PMI, IIP, core industry) were showing tepid data due to the sharp fall in the economic and commercial activities during the quarter. Agriculture sector stands out during the quarter, growing by 3.4%. Higher rural spending by the government and better rabi harvest has benefited the sector. Timely monsoon has also led optimism towards kharif sowing supported by reverse migration aiding the labour availability. Steep fall in industry growth, manufacturing down by 39%, construction down by 50%, mining fell by 23%.  A sharp fall was led by the shutdown of factories barring essentials, standstill of construction activities. GDP data is on an expected line, Now the market will look for the GDP recovery in the remaining months of FY21, however, this is not strong enough to offset the shock from Q1. Base effect will push up growth in FY22. Now, watch out will be, after unlock 4.0, how the economic activities pans out and the direction of the high frequency indicators

Expert View :: Deepak Jasani, Head of Retail Research at HDFC Securities on Q1 GDP

The June quarter GDP number came in worse than most estimates at -23.9% YoY. Widespread and repeated lockdowns has resulted in this sharp fall. Construction contracting 50.3% and Trade, hotel, transport, communication contracting 47% are the two negative surprises. Investments too contracted 47.1%. The numbers being slightly worse than expected could impact the market sentiments mildly. The RBI also cannot do much beyond what it has already done. Ball would now be in the court of the Govt to spur consumption by taking fiscal measures, where RBI may come in to help for smoothening the fund raise program.
 
The GDP numbers could upset the government’s fiscal math that may force major changes in the public finance estimates.
 
Now the focus will shift to Sept quarter. Going by the July Core Infra number of -9.6%, the Sept quarter may also record high single digit decline in GDP on a YoY basis. While the rural economy has offset the slowdown in urban areas in Q1 to some extent, rural recovery is unlikely to support such pace in subsequent quarters. One reason for this is that Covid-19 has started to penetrate rural areas at a fast pace since July.
 
India’s recovery path appears a long and hard one. A mix of monetary and fiscal measures to prop up the economy has fallen short so far. Some innovative thinking on the part of Govt/RBI and some good providence are required to turn the tide quickly.

Expert View :: Deepthi Mary Mathew, Economist at Geojit Financial Services on Q1 GDP

Indian GDP growth rate contracting by 23.9 percent was more or less expected. The economy was in a complete lockdown for nearly two months, and all the high-frequency indicators were pointing towards the fact that the country was heading towards one of the worst contractions. Consumption, the major driver of Indian GDP contracted by 27 percent in the first quarter. Investment demand as measured by Gross Fixed Capital Formation (GFCF) contracted by nearly 47 percent. Investment growth has been in the negative territory for the last three quarters, and the pandemic induced crisis has only worsened the situation. Considering the uncertain economic scenario, investment growth would continue to be in the negative territory in the coming quarters

BROKERAGE VIEW :: Motilal Oswal Financial Services on JK Cement

CMP: Rs 1,489 | Reco: Buy

>> JK Cement (JKCE)’s 1QFY21 revenue/EBITDA/PAT at INR9.7b/INR2.2b/INR0.8b was down 27%/29%/49% YoY and was +2%/+29%/+57% against our estimate.

>> Volumes declined 24% YoY to 1.77mt (est.: 1.73mt). Grey Cement (incl. clinker) declined 19% YoY to 1.59mt and White Cement declined 48% YoY to 0.18mt.

>> Blended realization declined 5% YoY to INR5,464/t (-1% QoQ) on a higher proportion of Grey Cement (90% v/s 85%) in the volume mix (est.: INR5,481/t).

Nifty outlook & stock calls by Anand Rathi: Buy Bajaj Auto, Relaxo Footwear

BUY NIFTY | TARGET: 11,500 | STOP LOSS: 11,250
 
The Nifty index witnessed profit booking at higher levels and has reached the crucial support of a rising trend line which acted as a major support zone. So, as long as it respects this rising trend line, one can take a contra bet on the index with the expectation of a pullback towards 11,500 levels. The momentum indicators and oscillators on the weekly scales are still in buy mode which hints of some buying at lower levels. The volatility index “India VIX” jumped more than 25% to end near 23 levels, so caution is advised as the markets are likely to be volatile. READ MORE

Bulk deals on BSE as on Monday

Bulk deals on NSE as on Monday

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


Rupee check

Source: Reuters


Oil rises in shift to risk assets as US dollar slides

>> Oil prices rose in early trade on Tuesday, reversing overnight losses, as investors shifted to risk assets and out of the safe-haven U.S. dollar, which slid to a more than two-year low.

>> Brent crude futures climbed 27 cents, or 0.6%, to $45.55 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose 21 cents, or 0.5%, to $42.82 a barrel.

(Source: Reuters)

SGX Nifty update

>> At 8:22 am, the index was at 11,433 level, up 68 points or 0.59 per cent.

Asian Market check

Source: Reuters


Nasdaq ends higher while S&P 500 posts biggest August gain since 1986

Source: Reuters


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