Indices end flat, Sensex falls 37 pts; private banks, pharma stocks decline

Topics Markets | HDFC | Wipro

NSE's Nifty ended at 11,308, down 14 points or 0.12 per cent. (Photo: Kamlesh Pednekar)
The domestic stock market ended Wednesday's rangebound session on a flat note with a negative bias, amid selling in private banks, FMCG, pharma, and metal counters. Further, weak global cues, too, weighed on investor sentiment. 

The S&P BSE Sensex ended 37 points or 0.1 per cent lower at 38,370 levels. Reliance Industries (RIL), HDFC Bank, TCS, and HUL were among the major contributors to the index's loss. On the other hand, HCL Tech, SBI, and Infosys lent support to the market. 

NSE's Nifty ended at 11,308, down 14 points or 0.12 per cent. Volatility index, India VIX, dropped over 2 per cent to 20.89 levels. 

The trend in the broader market also remained subdued. For instance, the S&P BSE MidCap index ended 0.26 per cent lower at 14,355 levels while the S&P BSE SmallCap index fell 0.02 per cent to end at 13,834 points.

Among sectoral indices, Nifty Pharma declined the most - down 1.5 per cent to 11,590. The Nifty Metal index fell 0.67 per cent while Nifty FMCG ended at 31,636.70, down, 0.41 per cent. Nifty PSU Bank, on the other hand, rallied 2.7 per cent to 1,477.70 levels.

Global markets

Europe’s stock markets were steady Wednesday after doubts emerged about fresh US stimulus, while it was shaping up to be another wild day for gold and silver and Turkey’s troubled lira. 

In Asia, Chinese shares fell for a second straight session after global market sentiment soured on the prospect of a swift US stimulus boost and as domestic data showed softer growth in bank lending.

In commodities, oil prices edged up after a bigger-than-expected drop in US inventories. Gold swung from being down 2 per cent to being up 1.7 per cent at $1,935 per ounce, a day after it suffered its biggest daily fall in seven years.

(With inputs from Reuters)

4:08 PM IST "Indian benchmark indices closed out a volatile day, flat, with a negative bias. Global cues added to the uncertainty with doubts emerging about the expected US stimulus measures and continuing US-China tensions. Profit booking continued in the Pharma sector. Markets are reacting uncertainly to global cues and this uncertainty is expected to continue. The downside looks limited but investors are advised to remain cautious, considering the valuations of some of the stocks."

3:43 PM IST

3:42 PM IST

3:36 PM IST The S&P BSE Sensex slipped 37 points or 0.10 per cent to settle at 38,370 levels while NSE's Nifty ende at 11,308, down 14 points or 0.12 per cent.

3:28 PM IST

3:16 PM IST

3:07 PM IST In a filing to BSE, NMDC said it has increased the price of lumps or high-grade iron ore by Rs 300 to Rs 2,950 per tonne, and that of iron ore fines or inferior grade ore by Rs 300 to Rs 2,660 a tonne.   The revised prices exclude royalty, District Mineral Fund (DMF), National Mineral Exploration Trust (DMET), cess, forest permit fee, and other taxes, the company said. READ MORE  

3:03 PM IST

2:57 PM IST

2:50 PM IST "Within two weeks, the first batch of the vaccine will be released," Murashko said at a press conference.   "The vaccination will be voluntary anyway. Some of those doctors who already have immunity against the coronavirus, there are around 20 per cent, ... think they do not need vaccination, it will be up to them to decide," Murashko assured. READ MORE

2:35 PM IST COMPANY PRICE(rs) 52 WK HIGH CHG(%) ABB POWER PRODUC 907.50 964.75 -4.32 BALKRISHNA INDS 1380.00 1384.70 2.03 ESSEL PROPACK 278.50 286.80 1.49 GALAXY SURFACT. 1727.45 1790.00 -2.24 GMM PFAUDLER 6103.00 6913.85 -6.06 » More on 52 Week High

LIVE UPDATES

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

"Indian benchmark indices closed out a volatile day, flat, with a negative bias. Global cues added to the uncertainty with doubts emerging about the expected US stimulus measures and continuing US-China tensions. Profit booking continued in the Pharma sector. Markets are reacting uncertainly to global cues and this uncertainty is expected to continue. The downside looks limited but investors are advised to remain cautious, considering the valuations of some of the stocks."

SECTOR WATCH:: Nifty PSU Bank index jumps 2.7%


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


CLOSING BELL

The S&P BSE Sensex slipped 37 points or 0.10 per cent to settle at 38,370 levels while NSE's Nifty ende at 11,308, down 14 points or 0.12 per cent.

MARKET CHECK


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


NMDC hikes iron ore rates by Rs 300 to Rs 2,950 a tonne effective today

In a filing to BSE, NMDC said it has increased the price of lumps or high-grade iron ore by Rs 300 to Rs 2,950 per tonne, and that of iron ore fines or inferior grade ore by Rs 300 to Rs 2,660 a tonne.
 
The revised prices exclude royalty, District Mineral Fund (DMF), National Mineral Exploration Trust (DMET), cess, forest permit fee, and other taxes, the company said. READ MORE
 

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


Sectoral trends on NSE at this hour


First batch of Covid-19 vaccine out within 2 weeks: Russian Health Minister

"Within two weeks, the first batch of the vaccine will be released," Murashko said at a press conference.
 
"The vaccination will be voluntary anyway. Some of those doctors who already have immunity against the coronavirus, there are around 20 per cent, ... think they do not need vaccination, it will be up to them to decide," Murashko assured. READ MORE

Stocks that hit 52-week high on BSE today

COMPANY PRICE(rs) 52 WK HIGH CHG(%)
ABB POWER PRODUC 907.50 964.75 -4.32
BALKRISHNA INDS 1380.00 1384.70 2.03
ESSEL PROPACK 278.50 286.80 1.49
GALAXY SURFACT. 1727.45 1790.00 -2.24
GMM PFAUDLER 6103.00 6913.85 -6.06
» More on 52 Week High

BUZZING STOCK:: Bharat Forge soars nearly 5.5% post June quarter nos


Planning to invest in the markets? These 406 stocks look bullish on charts

Even though the markets have been consolidating in a range since the past few sessions, there are still a number of stocks that look bullish on the charts. An analysis of the Nifty 500 index on the Relative Strength Index (RSI) parameter, a tool that helps identify the strength and momentum on a scale of 0 to 100 value, indicates only one stock - Container Corporation of India Ltd (CONCOR) - to be on a weak footing. READ MORE

ONGC seeks exemption from applicability of some governance norms

State-owned Oil and Natural Gas Corporation (ONGC) has sought exemption from the applicability of some of the corporate governance norms, especially those pertaining to the board’s composition and evaluation, people in the know said. READ MORE

UPDATE:: SBI Cards hits all-time high


Rupee Closing

Rupee settles weaker at 74.83 per US dollar vs Tuesday's close of 74.78/$

India's troubled shadow lenders show signs of revival on stimulus

Premiums that investors seek to buy AAA rated five-year bonds of non-bank lenders over similar-maturity government notes narrowed the most last month since at least 2012, helping a gauge measuring bond spreads to strengthen. A custom index of shares of 20 financial firms and other companies also improved. READ MORE

Hindalco Industries slips nearly 3%


Hero MotoCorp Q1 preview: Profit may dip up to 94% YoY as sales take a hit

During the quarter under review, Hero MotoCorp sold 5.63 lakh units, down 69.4 per cent YoY from 18.4 lakh units in Q1FY20. In the year-ago quarter, the company had sold 13.34 lakh units. In Q1FY20, it had reported revenue of Rs 8,030.3 crore and profit of Rs 741.1 crore on a standalone basis. READ MORE

NEWS ALERT | China to bring up WeChat, TikTok in the US trade talks: Reuters

-- The virtual meeting to likely take place as soon as this week between US & China

June Quarter Result :: Bharat Forge reports loss

>> Net loss at Rs 127.3 crore

>> EBITDA loss at Rs 14 crore

>> Revenue at Rs 11,54.2 crore 


Minda Industries advances 7% after Board fixes record date for rights issue

The company will issue 10 million fully paid equity share of face value of Rs 2 each for amount aggregating to Rs 250 crore. The rights issue will open on August 25 and close on September 8, 2020 READ MORE

OPEC+ has tricky balancing act keeping $40/b oil price floor: Paul Hickin

OPEC+ will not want to undo the stability it has brought to crude prices. The oil exporting alliance must now find a way of increasing production while not flooding a fragile global market. Whether it pulls it off could depend on the strength of demand from its key Asian customers. After having slashed output by 9.7 million b/d since May, OPEC and its partners in a coalition led by Saudi Arabia and Russia, relaxed their cuts to 7.7 million b/d as of August 1 and through the end of the year. READ MORE 


MARKET UPDATE:: Sensex pares day's losses


European indices make a mixed start


OPINION | Markets fixated about inflation but it is the wrong bogeyman to worry about

With gold above $2,000 and central banks flooding the world with cash, the prospect of surging inflation is again starting to exert a grip on the minds of investors. Concern is premature: Deflation remains the bigger threat. There’s little sign of a meaningful spurt in consumer prices, even after five months of unparalleled easing in fiscal and monetary policy to combat the pandemic. READ MORE

Exchanges see mixed earnings in June quarter despite robust trading volumes

The Bombay Stock Exchange (BSE) reported a 20 per cent dip in profit before tax (PBT) to Rs 39.8 crore in the June quarter. For the National Stock Exchange (NSE), the PBT was up by 44.4 per cent, at Rs 922.7 crore. The slump in initial public offerings (IPOs) amid the Covid-19 pandemic has been one of the factors weighing on the revenues of the BSE. Revenue from operations was down by 8 per cent in June quarter, from the corresponding quarter last year. READ MORE

Recovery from intra-day lows in today's session

PVR jumps 9% as its rights issue gets over-subscribed by 2.24 times

The rights issue had opened for subscription on July 17th and closed on July 31st. It received an application for 85.29 lakh shares, worth Rs 672 crore. The offer size was Rs 300 crore, an equivalent of 38.23 lakh shares at an issue price of Rs 784 per share. "In a bid to cope with the current distress, PVR Cinemas issued a special rights offer that was oversubscribed. The company, which had debt of around Rs 780 crore as of FY 2020 (on revenues of Rs 3,452.23 crore) will now be able to tide over initial monthly losses of about Rs 40 crore for the next 12 months," says Ankur Periwal, senior analyst-media sector, Axis Capital. READ MORE 


Lemon Tree Hotels launches hotel in Dwarka, Gujarat; stock advances 10%

Analysts at Edelweiss Securities, in its result review note, said that from the liquidity perspective, Lemon Tree Hotels has sufficient cash to meet its total expenses including debt obligations for the next four quarters assuming the worst-case scenario. "In addition to the Rs 2.3 billion of liquidity (including Rs 1.7 billion from APG), Lemon Tree has confirmed its plans for a rights issue, which will shore up its coffers by Rs 1.5 billion. There is also an option of raising another Rs 1.3bn from APG. Putting in perspective its monthly opex of nearly Rs 100 million, liquidity is ample," the brokerage said. READ MORE 


MARKET CHECK


IndiGo surges 8% on report airline in talks to lease back 12 ATR aircraft

The airline confirmed that it is "working to close these transactions but it will be difficult to give a specific timeframe for its completion". Apart from this, the airline said, it will continue to finance their new aircraft deliveries in the ordinary course as more planes are delivered. READ MORE

Proxy firms play by new rulebook as Sebi tightens procedural guidelines

The new framework is aimed at increasing accountability, addressing conflict of interest, and establishing greater communication between proxy advisors and their clients and the company. More importantly, Sebi has allowed India Inc to present its counterview and has also put in place a grievance redressal mechanism. READ MORE


Pharma rally may lose steam as valuations factor in near term gains

The rally in the BSE Healthcare index may lose steam after gaining 76 per cent since March lows. Nearly a fifth of these gains came over the last month.
 
The recent gains came on the back of June quarter numbers and expectations of steady earnings growth going ahead. While the outsized gains over the last five months look sharp, the same has come after a continuous streak of underperformance every year since CY16. READ MORE

Foreign portfolio flows in 2020 turn positive on RBI's stimulus action

Foreign portfolio flows (FPIs) into the domestic equities have turned positive on a year-to-date basis. At one point—during end-April, the overseas investors had pulled out $7.1 billion for the year from domestic stocks. Since then, there has been a dramatic turnaround in FPI flows thanks to aggressive stimulus action taken by global central banks leading to softening of yields in the debt market. READ MORE 


Here's why analysts choose IndiGo over SpiceJet for the long haul

"IndiGo, due to its Numero Uno position and strong balance sheet, will weather the storm. But, under the current circumstances, SpiceJet cannot raise funds like the former did. Government support seems to be the only way out now. Of course, a white knight with deep pockets and confidence in the recovery of the business, can surprise and step in," says V K Vijayakumar, chief investment strategist at Geojit Financial Services. READ MORE

Top losers on BSE at this hour

COMPANY PRICE(rs) CHG(%)
HINDUSTAN ZINC 232.85 -5.67
R C F 49.90 -5.31
AFFLE INDIA 2064.45 -5.07
SUZLON ENERGY 4.05 -4.93
INFO EDG.(INDIA) 3242.75 -4.36
» More on Top Losers

HAL soars 6%, hits 52-week high as MoD okays acquisitions worth Rs 8,722 cr

At 10:35 am, the stock was trading 4.8 per cent higher at Rs 1,068 on the BSE, as against 0.48 per cent decline in the S&P BSE Sensex. So far in the month of August, the stock of HAL has zoomed 14 per cent till Tuesday, as against4 per cent rally in the benchmark Sensex. READ MORE

BROKERAGE VIEW:: YES Securities on Siemens

RATING: ADD | TARGET PRICE: Rs 1,280

Under the digitalisation theme, SIEM’s cloud-based open Internet of Things (IoT) platform ‘MindSphere’ is expected to gain momentum leading to new orders over the medium term. Scope for margin expansion in segments like Building Technologies, Digital Factory and Process Industries, predictable cash flows from digitisation, and short-cycle demand would aid in sustainable growth. We are cutting FY20E/FY21E estimates by 8%/5% respectively to factor in ordering & execution slowdown especially in the next 2-3 quarters. SIEM is trading at 44x/36x to FY21E/FY22E EPS. We believe companies with a future-ready business model, backed by structural tailwinds that are positive cash, will revive faster than peers. We roll forward to Sep’22E and retain the ADD rating with a revised TP of Rs 1,280 at 40x Sep’22E EPS.

BROKERAGE VIEW:: Prabhudas Lilladher on Indoco Remedies

Rating: HOLD | CMP: Rs 262 | TP: Rs 243

We believe INDR ’s CAPEX cycle is over while its regulatory issues are behind. There could be a possibility of the next few quarters to be an inflection point for earnings recovery. It has multiple triggers like increased focus on chronic products, strong order book for EU, the launch of new products in US, and underutilised API capacity. However, its Rs 2.7bn debt and only Rs 100m of cash remains an overhang on the valuation. India formulations receive 40 per cent of yearly sales in 1Q and disappointing growth in 1QFY21 due to the impact of Covid-19 could be a hindrance for management to achieve its guided growth and margin in FY21E. INDR however maintains its guidance for FY21E. We increase our assigned PE to 18x from 17x of FY22E and derived a new TP of Rs 243 (earlier Rs 219) to maintain parity over comparative valuation with peers. We maintain HOLD recommendation.

BROKERAGE VIEW:: ICICI Securities on KEC International

Factoring-in the strong order prospects and better than expected execution and margins in Q1FY21, we raise our FY21E and FY22E earnings by 11% and 12% respectively. Maintain BUY with a revised target price of Rs 342 (Rs 260 previously).

BROKERAGE VIEW:: HDFC Securities on Sobha

Amidst challenging Covid-19 environment, Sobha reported operationally robust 1QFY21 with pre-sales of 0.65mn sq ft (-39% YoY) aided by resilient sales in Bengaluru (70% of sales in 1QFY20), lower de-growth 35% YoY (74.5% of sales in 1QFY21). Despite the first half of lQFY21 facing lockdown related issues, total collections for the quarter stood at Rs 5.5bn (-39/-42% YoY/QoQ), this is commendable. Sales activity has picked up in June and the trend is flowing into 2QFY21, with SDL indicating a better 2QFY21. Whilst sales inquiries have reached pre-Covid levels, the conversion is yet to happen as buyers want to visit the site physically. We maintain BUY with a target price of Rs 348/sh.

BROKERAGE VIEW:: Edelweiss Securities on VMart

VMart’s mainstay—value retailing—should help it hold up in the face of cutback on large-ticket purchases by consumers. We expect traction in recovery to gain momentum with the unlocking of markets and commencement of the festive season. A strong balance sheet and waning competition are likely to help gain market share over the long term. We retain ‘BUY/SP’ with TP of Rs 2,230 (retain 20x FY22E EV/EVITDA). The stock is trading at 16.5x FY22E EV/EBITDA.

BROKERAGE VIEW:: Edelweiss Securities on Shree Cement

The Q1FY21 performance of Shree Cement (SRCM) lacks the surprise punch (vis-à-vis peers such as ACC and Ambuja that reported a massive beat) even as EBITDA (down 22% YoY) missed our estimate by just 4%. Volumes slipped ~19% YoY (lowest on Street so far and 2% ahead of expectation), but it has come on the back of two disappointments: blended realisations rising merely ~1% QoQ (3% below estimate), and freight cost/t surging ~10% QoQ. With energy cost and fixed expenses under control, blended EBITDA/t stood at Rs 1,421 (down 5% YoY). That said, given cement prices and operating costs are expected to stay reasonably firm in FY21 and assuming normalisation of demand in FY22, we are keeping estimates intact. While SRCM’s balance sheet remains robust and our long-term sector view stays sanguine, the positives, for now, are largely priced in. Retain ‘HOLD’ with a TP of Rs 19,503.

JMC Projects rallies over 13% after securing orders worth Rs 1,363 crore

JMC Projects shares advanced as much as 13.5 per cent to Rs 55 on the BSE on Wednesday after the engineering firm on Tuesday informed it has secured new orders worth Rs 1,363 crore. In a filing to the BSE, the company said it has won Rs 1,169 crore building projects order in southern India; while in Bihar, it has won a water supply project of Rs 194 crore. READ MORE 


PSB shares in focus; Nifty PSU Bank index jumps 4%; PNB, SBI gain up to 5%

Among individual stocks, Punjab National Bank surged 5 per cent, followed by Bank of Baroda (up 4 per cent), State Bank of India (3.5 per cent), UCO Bank (3.3 per cent), and Bank of Maharashtra (3 per cent) on the NSE. Besides, Central Bank of India, Indian Bank, Canara Bank, J&K Bank, and Indian Overseas Bank were up in the range of 1.9 and 2.7 per cent at 9:47 am. READ MORE

Shriram City Union rises 4% as June quarter profit shows sequential growth

Shares of Shriram City Union Finance rose as much as 4.43 per cent to Rs 692 on the BSE on Wednesday after the announcement of its results for the June quarter of FY21 (Q1FY21). The company's net profit declined 24 per cent on a year-on-year (YoY) basis to Rs 192.27 crore. However, the same was up 26 per cent from Rs 153.08 crore on a sequential basis. READ MORE

Commodity heatmap :: Silver plunges 9%, Gold 4%


Rupee Opening

Rupee opens at 74.77 per US dollar vs Tuesday's close of 74.78/$

Adani Ports gains 3% post Q1 nos; Co to raise up to Rs 3,000 crore via NCDs

For the April-June quarter, the company reported a 26 per cent year-on-year (YoY) decline in its consolidated net profit at Rs 758 crore. Revenue from operations stood at Rs 2,292.69 crore, down 18 per cent against Rs 2,794.47 crore in the corresponding quarter of the previous fiscal. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) shrunk 22 per cent to Rs 1,438 crore against Rs 1,843 crore recorded in the same period last year. READ MORE 


ALERT :: Markets off lows


Nifty Pharma index under pressure


Debt MFs see multi-fold surge in July; investors focus on short-term funds

In addition to that, funds with pristine credit quality, especially from categories such as money market, short duration, corporate bond and banking and PSU, continue to gain traction, highlighting investors' preference for safety in this segment.
 
According to the data, mutual funds (MFs) that invest in fixed-income securities saw an inflow of 91,392 crore in July, as compared to Rs 2,862 crore inflow in June. READ MORE

Most active stocks by volume

COMPANY PRICE(rs) CHG(%)
SUZLON ENERGY 4.08 -4.23
VODAFONE IDEA 8.68 -0.34
DEEPAK FERTILIZ. 160.80 1.48
ST BK OF INDIA 198.75 1.87
PUNJAB NATL.BANK 33.90 3.20
» More on Most Active Volume

Shriram City Union Fin gains post Q1 nos

>> The company on Tuesday reported standalone profits for the quarter ending June at Rs 192.27 crore. It had declared net profit at Rs 253.18 crore during the corresponding quarter of the previous year.


Eicher Motors holds gains

>> The company informed that its board has approved sub-division of each existing equity share of face value of Rs 10 each into 10 equity shares of face value of Rs 1 each


Wipro trades under pressure


Adani Ports gains on fund raising plans

>> Adani Ports and Special Economic Zone (APSEZ) on Tuesday said its board has approved a proposal to raise up to Rs 3,000 crore through issuance of non-convertible debentures (NCDs). The fund will be raised in one or more tranches.


Reliance Industries down nearly 1%


Central Bank of India gains 2% in a weak market

>> Central Bank of India’s profit before tax (PBT) rose around 351 per cent to Rs 316.33 crore in the quarter ended June 30 (Q1FY21) from Rs 70.05 crore in Q1FY20, on sharp growth in net interest income (NII) and lower provisions and contingencies.


Nifty Bank index slips nearly 200 pts


Sectoral trends on NSE at Open


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


Opening Bell


Opening Bell


OPEC+ has tricky balancing act keeping $40/b oil price floor

Indian refiners may have no option but to cut run rates given the domestic crunch and poor export margins. According to India Oil Corp. Chairman Shrikant Madhav Vaidya, who oversees the country’s largest state-run refiner, the company’s run rate is expected to average 70 per cent-75 per cent in 2020. “We won’t get back to normal times in the near future,” he said. READ MORE

Commodity heatmap :: Silver hits 6% lower circuit


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


Markets at Pre-open


Markets at Pre-open


Top stocks to watch out for today

Earnings today: A total of 137 companies, including Aurobindo Pharma, Ashok Leyland, and Tata Power are scheduled to announce their June quarter results today.

Adani Ports: Adani Ports and Special Economic Zone (APSEZ) on Tuesday said its board has approved a proposal to raise up to Rs 3,000 crore through issuance of non-convertible debentures (NCDs). The fund will be raised in one or more tranches.
 
Wipro: IT major Wipro on Tuesday said it has completed the acquisition of 4C for 68 million euros. In July this year, the Bengaluru-based company had said it will acquire 4C for 68 million euros (about Rs 589 crore). READ MORE 


 

BROKERAGE VIEW :: Motilal Oswal Financial Services on Motherson Sumi

CMP: Rs 107 | TP: Rs 135 (+26% ) | Reco: Buy

>> Motherson Sumi (MSS)’s 1QFY21 operating performance beat was driven by lower losses in global businesses. SMP’s greenfield plant progression toward breakeven continues despite the COVID-19 impact as losses reduce on a QoQ basis. MSS is well-positioned to come out of the crisis stronger, driven by its robust order book, for which it is already fully invested.

>> We tweak our estimates to factor EUR–INR changes, resulting in minor modifications to our FY21/FY22 consol. EPS by -3%/+3%.

>> Our positive view on MSS remains intact (stabilization of greenfield plants + execution of SMRPBV’s strong order book + India recovery). Maintain Buy, with TP of INR135 (Sep’22 SOTP).
 

BROKERAGE VIEW :: Motilal Oswal Financial Services on Bosch

CMP: Rs 13,261 | TP: Rs 14,400 (+9%) | Reco: Neutral

>> Bosch’s (BOS) 1QFY21 revenue performance was better than the underlying industry volume growth for a second quarter in a row. We expect faster recovery due to strong tractor demand, addition of 2W segment and content increase. We believe BOS’s stock price is largely reflecting all the negatives, but a re-rating catalyst may emerge within 2-3 quarters.

>> We have upgraded our FY21/FY22E EPS by 15.4%/7.2% to reflect fasterthan-expected demand recovery and cost cutting initiatives. 

BROKERAGE VIEW :: Motilal Oswal Financial Services on Siemens

CMP: Rs 1,158 | TP: Rs 1,210 (+4%) | Reco: Neutral

>> Factoring in the 3QFY20 performance, we have cut our FY20/21/22E EPS by 6%/2%/3% YoY.

>>  We like SIEM’s product portfolio and diverse end market exposure. The company is well poised to benefit over the longer term, led by niche businesses of Industrial Automation and Digitalization theme.

>> We maintain Neutral with lower TP of INR1,210 (Prior: INR1,235) as we await a better entry point in the stock. We have valued SIEM’s current business at target
P/E multiple of 35x on Mar’22E EPS and the C&S Electric business at the acquisition cost. Note that our target multiple of 35x is lower than the 45x ascribed to ABB as SIEM has one-third of its business exposed to projects. ABB; however, is a pure play products and services company

BROKERAGE VIEW :: Motilal Oswal Financial Services on Power Grid

CMP: Rs 177 | TP: Rs 221 (+25%) | Reco: Buy

>> Power Grid (PWGR)’s result highlights the impact of rebate (INR10.75b), with reported S/A PAT declining 18.5% YoY to INR28.1b. Adjusted for the same and prior-period revenue, PAT was up 21% YoY.

>> Rs 23 400 crore worth of awards would be bid out under various schemes, but we expect some delays. In this context, a declining order book does present the risk of growth slowdown. However, valuations at 1.3x FY22E P/BV and ~9% FY22E dividend yield remain attractive for a company with steady RoEs of ~17%. 

BROKERAGE VIEW :: Motilal Oswal Financial Services on Dabur

CMP: Rs 513 | TP: Rs 600 (+17%) | Reco: Buy

>> As pointed out, the structural and medium-term narrative on topline growth is turning highly attractive, led by strong traction in the profitable Healthcare business and an attractive rural growth outlook, with ~48% of Dabur's domestic sales coming from rural. Additionally, the investment case is being strengthened further, supported by: (a) focus on the core, (b) Power Brand strategy, (c) a spate of new launches, (d) an increasing direct distribution reach, (e) the narrowing gap
on analytics v/s domestic peers, and (f) cost savings, which would be plowed back into the business. High near-term valuations appear justified at this initial stage of structural turnaround, which could potentially result in ~20% EPS growth following the investment phase for the current year. 

BROKERAGE VIEW :: Motilal Oswal Financial Services on Ipca Lab

CMP: Rs 2,008 | TP: Rs 2,420 (+20%) | Reco: Buy

>> Ipca Laboratories (IPCA) delivered a phenomenal performance, with unprecedented high sales/EBITDA/PAT for the quarter. This was led by Export Formulations and Domestic APIs. COVID-19-led demand for Hydroxychloroquine Sulfate (HCQS) sustained the momentum in API, and the spillover of some business QoQ aided 3x YoY PAT for 1QFY21.

>>  We raise our EPS estimate by 36%/15% for FY21/FY22 to factor: (a) HCQSled opportunity, (b) an improving outlook / reduced opex for Domestic Formulations (DF), and (c) lower raw material cost. We further raise the PE multiple to 25x (in line with the five-year average) from 23x earlier to factor IPCA’s capability to: (a) grow better than the industry in DF and (b) benefit from supply disruption in the API industry and increased backward integration driving better gross margins. 

Nifty outlook and stock pick by HDFC Securities

BUY ULTRATECH CEMENT (3,972) | Target: Rs 4,350 | Stop-loss: Rs 3,800
 
The stock has witnessed running correction from the recent high of Rs 4,287. Primary trend of the stock has been bullish as the stock has been sustaining above its 200 days EMA. Recent correction should be considered as a buying opportunity. READ MORE

Bulk deals on BSE as on Tuesday

Bulk deals on NSE as on Tuesday

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


Rupee check

Source: Bloomberg


Oil prices bolstered by bigger-than-expected drop in US crude stocks

>> Oil prices moved higher on Wednesday after an industry report showed that US inventories of crude fell more than analysts had expected, bolstering hopes that fuel demand in the world’s biggest economy can weather the coronavirus pandemic.
 
>> Brent crude was up 15 cents, or 0.3%, at $44.65 a barrel, after falling around 1% on Tuesday.
 
>> West Texas Intermediate oil was up 9 cents, or 0.2%, at $41.70 a barrel, having dropped 0.8% in the previous session.

(Source: Reuters)

SGX Nifty tanks 100 pts

>> At 8:28 am, the index was at 11,245.50 level, down 102.5 points or 0.90 per cent.

S&P 500, Dow snap seven-day winning streak as concern mounts over stimulus deal

Source: Reuters


Asian markets set for mixed trade amid US stimulus wrangling

Source: Reuters


Good morning!

Welcome to the Business Standard live blog.

Catch all the live market updates here.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel