MARKET WRAP: Indices end flat, Sensex up 60 pts; ITC, TCS rise nearly 2%

The Nifty50 index, meanwhile, ended at 11,355, up 21 points, or 0.19 per cent.
The domestic stock market ended Monday's range-bound session on a flat note. While select financial and auto counters slipped in the trade, FMCG, IT stocks and Reliance Industries (RIL) witnessed buying.

The S&P BSE Sensex today ended at 38,417, up 60 points, or 0.16 per cent, with Hindustan Unilever (HUL) being the top gainer and Mahindra & Mahindra (M&M), down over 3 per cent, the biggest loser. 

The Nifty50 index, meanwhile, ended at 11,355, up 21 points, or 0.19 per cent. India VIX declined nearly 2.5 per cent to 21.6 levels. 

Among sectoral indices on the NSE, the Nifty Auto index fell nearly 0.5 per cent to 7,958 levels while Nifty Bank settled at 22,945, down 0.3 per cent. Nifty Realty index ended around 1 per cent lower at 218 levels. On the other hand, Nifty IT and Nifty FMCG ended 0.57 per cent higher each.  

In the broader market, the S&P BSE MidCap settled at 14,702, down 0.8 per cent while the S&P BSE SmallCap index ended 0.2 per cent lower at 14,573.48.

Buzzing stocks

SpiceJet ended 2.5 per cent lower on the BSE at Rs 52.3, but recovered from an intra-day low of Rs 51.60 on Monday, after the Delhi High Court asked cash-strapped airline to deposit within six weeks an additional Rs 243 crore in connection with a share-transfer dispute with ex-promoter Kalanithi Maran, owner of Sun group. READ MORE

Continuing their northward movement, shares of Astrazeneca Pharma India hit a fresh record high of Rs 4,669.90 on the BSE in the intra-day session. The stock settled at Rs 4,588.85, up 18 per cent.  

Shares of Tata Motors Differential Voting Rights (DVRs) rallied 11 per cent to Rs 62.50 during the day after its promoter Tata Sons acquired more than 5 million shares, worth Rs 30 crore, via open market on Friday. The stock ended at Rs 61.90, up over 10.5 per cent. READ MORE

 
Global markets

World shares rose slightly on Monday after losing $2.3 trillion in the last two sessions in a technology stocks led rout as investors reassessed soaring valuations when the global economy is in a coronavirus-induced recession while oil prices dropped.

European stocks, which have fewer technology stocks compared to the United States, started the week in the black driven by a 1.2% gain in Germany's Dax and London's export-heavy FTSE 100.

(With inputs from Reuters)


4:03 PM IST "Indian markets traded with volatility and finally ended the day with a positive bias. Virus infections continued to rise unabated and this fear combined with a sell off seen in the US markets, in the previous trading session, served to bring in doubts regarding the continuation of the momentum seen in recent times in the market. Investors would do well to stay nimble, watch global sentiments and trade cautiously"  

3:43 PM IST

3:42 PM IST

3:36 PM IST The S&P BSE Sensex ended at 38,417, up 60 points, or 0.16 per cent while NSE's Nifty ended at 11,355, up 21 points or 0.19 per cent. 

3:24 PM IST Continuing their northward movement, shares of Astrazeneca Pharma India hit a fresh record high of Rs 4,489, up 15 per cent on the BSE on Monday, in an otherwise range-bound market, amid expectation that the company’s candidate, AZD1222, could be viewed as a frontrunner in a global race to deliver an effective vaccine to combat the Covid-19 virus. READ MORE

3:12 PM IST RATING: REDUCE | TARGET PRICE: Rs 1,800 Asian Paints (52/64% revenue/PAT share) with 2.5-7x active dealers than the next three paint companies remains de-facto king in distribution/supply chain of paints in India. Coupled with better price laddering of products across categories/price points, this has ensured its unhindered dominance over decades. Promising optionality in waterproofing/other adjacent categories (we build in 40-50bp incremental growth from waterproofing) could surprise on the upside. We build in Sales/EBITDA/PAT CAGR of 8/9/10% over FY20-23E. Alas! all pluses seem priced-in at 55x Sept-22 P/E. We initiate coverage with a Reduce Reco and DCF-based TP of Rs. 1,800/sh (implying 50x Sep-22 P/E).

3:02 PM IST Over the weekend, India’s largest housing financier – Housing Development Finance Corporation (HDFC Limited) announced that it has approved Rs 47,000 crore towards the affordable housing segment. This is a significant milestone, given that the lender is often viewed catering to the mid- to upper-market segments. READ MORE

3:01 PM IST

2:54 PM IST COMPANY DAY'S HIGH(RS) DAY'S LOW(RS) LATEST(RS) FALL(%) DHANUKA AGRITECH 794.00 738.35 738.70 -6.96 FUTURE CONSUMER 11.10 10.37 10.37 -6.58 VODAFONE IDEA 13.21 12.20 12.35 -6.51 GULF OIL LUBRIC. 698.00 653.90 654.00 -6.30 Click here for the full list

2:49 PM IST "The sharp decline in economic growth should alarm us all. The 23.9 per cent contraction in India (and the numbers will probably be worse when we get estimates of the damage in the informal sector) compares with a drop of 12.4 per cent in Italy and 9.5 per cent in the United States, two of the most COVID-19-affected advanced countries," Rajan wrote in a post on his LinkedIn page. READ MORE

2:40 PM IST In the past one week, the stock of Future Retail has underperformed the market by declining 34 per cent, as compared to a 0.73 per cent decline in the S&P BSE Sensex. Till 02:03 pm, a combined 1.38 million equity shares had changed hands on the counter. There were pending sell orders for 11 million shares on the NSE and BSE, exchange data shows. READ MORE  

2:34 PM IST COMPANY PRICE(rs) 52 WK HIGH CHG(%) ASTRAZENECA PHAR 4059.40 4082.00 4.31 DIXON TECHNOLOG. 8860.00 8935.00 3.30 GRANULES INDIA 381.80 382.95 10.35 INDIAMART INTER. 4721.60 4770.00 15.16 SUPREME INDS. 1419.25 1425.00 2.85 » More on 52 Week High

LIVE UPDATES

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

"Indian markets traded with volatility and finally ended the day with a positive bias. Virus infections continued to rise unabated and this fear combined with a sell off seen in the US markets, in the previous trading session, served to bring in doubts regarding the continuation of the momentum seen in recent times in the market. Investors would do well to stay nimble, watch global sentiments and trade cautiously"  

SECTOR WATCH:: Nifty IT, Nifty FMCG gain 0.57% each


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


CLOSING BELL

The S&P BSE Sensex ended at 38,417, up 60 points, or 0.16 per cent while NSE's Nifty ended at 11,355, up 21 points or 0.19 per cent. 

AstraZeneca Pharma hits fresh record high of Rs 4,489; stock surges 15%

Continuing their northward movement, shares of Astrazeneca Pharma India hit a fresh record high of Rs 4,489, up 15 per cent on the BSE on Monday, in an otherwise range-bound market, amid expectation that the company’s candidate, AZD1222, could be viewed as a frontrunner in a global race to deliver an effective vaccine to combat the Covid-19 virus. READ MORE

BROKERAGE VIEW:: HDFC Securities on Asian Paints

RATING: REDUCE | TARGET PRICE: Rs 1,800

Asian Paints (52/64% revenue/PAT share) with 2.5-7x active dealers than the next three paint companies remains de-facto king in distribution/supply chain of paints in India. Coupled with better price laddering of products across categories/price points, this has ensured its unhindered dominance over decades. Promising optionality in waterproofing/other adjacent categories (we build in 40-50bp incremental growth from waterproofing) could surprise on the upside. We build in Sales/EBITDA/PAT CAGR of 8/9/10% over FY20-23E. Alas! all pluses seem priced-in at 55x Sept-22 P/E. We initiate coverage with a Reduce Reco and DCF-based TP of Rs. 1,800/sh (implying 50x Sep-22 P/E).

HDFC's all-time low core valuations offer an interesting proposition

Over the weekend, India’s largest housing financier – Housing Development Finance Corporation (HDFC Limited) announced that it has approved Rs 47,000 crore towards the affordable housing segment. This is a significant milestone, given that the lender is often viewed catering to the mid- to upper-market segments. READ MORE

IndiaMART InterMESH zooms 9% in an otherwise range-bound market


Fall from intra-day high today in BSE500 stocks

COMPANY DAY'S HIGH(RS) DAY'S LOW(RS) LATEST(RS) FALL(%)
DHANUKA AGRITECH 794.00 738.35 738.70 -6.96
FUTURE CONSUMER 11.10 10.37 10.37 -6.58
VODAFONE IDEA 13.21 12.20 12.35 -6.51
GULF OIL LUBRIC. 698.00 653.90 654.00 -6.30
Click here for the full list

Fall in GDP alarming; time for bureaucracy to take meaningful action: Rajan

"The sharp decline in economic growth should alarm us all. The 23.9 per cent contraction in India (and the numbers will probably be worse when we get estimates of the damage in the informal sector) compares with a drop of 12.4 per cent in Italy and 9.5 per cent in the United States, two of the most COVID-19-affected advanced countries," Rajan wrote in a post on his LinkedIn page. READ MORE

Future Retail hits lower circuit for fifth straight day, slips 34% in 1 wk

In the past one week, the stock of Future Retail has underperformed the market by declining 34 per cent, as compared to a 0.73 per cent decline in the S&P BSE Sensex. Till 02:03 pm, a combined 1.38 million equity shares had changed hands on the counter. There were pending sell orders for 11 million shares on the NSE and BSE, exchange data shows. READ MORE  


Stocks that hit 52-week high on BSE today

COMPANY PRICE(rs) 52 WK HIGH CHG(%)
ASTRAZENECA PHAR 4059.40 4082.00 4.31
DIXON TECHNOLOG. 8860.00 8935.00 3.30
GRANULES INDIA 381.80 382.95 10.35
INDIAMART INTER. 4721.60 4770.00 15.16
SUPREME INDS. 1419.25 1425.00 2.85
» More on 52 Week High

SBI invokes personal guarantees of Bhushan Power & Steel promoter

The State Bank of India (SBI) has invoked the personal guarantees of Sanjay Singal, promoter of Bhushan Power & Steel Ltd, after the company defaulted on loans worth Rs 48,000 crore to a consortium of banks. The company's debt resolution is almost ready, with JSW Steel declared the highest bidder with Rs 19,700-crore as an offer for the company. READ MORE

Rupee Closing

Rupee ends weaker at 73.34 per US dollar vs Friday's close of 73.14/$

Sharp rise in IRCTC


NEWS ALERT :: RBI announces Special OMO for Rs 10,000 cr on Sept 10


BROKERAGE VIEW:: HDFC Securities on Berger Paints

RATING: SELL | TARGET PRICE: Rs 460

While BRGR remains a credible No. 2 in paints; at 66x Sept-22 P/E (18% premium to APNT), risk-reward seems unfavorable. We assign a DCF-based TP of Rs. 460/sh (implying 55x Sep-21 P/E). Implied assumptions: (1) 10-year revenue CAGR: 12.6%, (2) FY20-30E/FY30-41E FCFF CAGR: 20/13.5% resp. (3) WACC: 10.5%, and (4) terminal growth: 6%, FCF/PAT conversion of ~70% over FY20-30E. Initiate with a Sell Reco.

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


Expert View :: Yash Gupta - Equity Research Associate at Angel Broking on AllCargo delisting's floor price

Allcargo Logistics Ltd board approves delisting proposal and set floor price at ₹92.58, which is 18.8% discount to its current market price of ₹114.15.Promoter and promoter group of the company will acquire all the fully paid-up equity shares of the company having a face value of ₹2 held by the public shareholders of the Company. As per the last filling, the public holds 29.99% of paid-up equity share capital of the company. Delisting will be a positive development for the Company but the proposed delisting prices is not upto expectation of public shareholders

BUZZING STOCK:: NTPC slips nearly 3%


MARKET CHECK:: Most realty stocks slip in trade; S&P BSE Realty index dips 1%


BUZZING STOCK:: Wabco India leaps 10%, hits new 52-week high


BROKERAGE VIEW:: Edelweiss Securities on Heritage Foods

Heritage Foods (HFL) has doubled from its March low (down 58% from its January-2018-high). FY20 was a challenging year owing to a harsh season, which dragged down core EBITDA 32% YoY. That said, we remain convinced about HFL’s prospects following: i) Margin revival on the back of benign milk prices and pricing power to drive up EBITDA 30% in FY21 (up 25% YoY in Q1FY21). ii) Robust B2C milk portfolio (65% of sales) relatively insulated from covid-19 fallout. iii) Focus on technology-enabled integrated milk procurement and a consistent scale-up (procurement up 34% in last three years). All in all, we expect RoCE to jump 640bps in FY21 and 860bps over FY20–22 to 23%. Hence, we are revising up TP by ~15% to Rs 456 as we are raising the core business’s PE by 15% to 18x FY22E (15.5x earlier). We however, are raising the discount on its stake in Future Retail from 20% to 30% (in the wake of RIL’s buyout). Maintain ‘BUY’.

BROKERAGE VIEW:: Centrum Broking on FDC

FDC’s Q1FY21 ahead of our estimates. Revenues declined 10% YoY/ 7.5% QoQ to Rs 3.08bn, reflecting the impact of the Covid-19 pandemic and consequent lockdown across markets. Pandemic impacted anti-infectives and rehydration salts while export business continues to grow. Despite lower top-line, gross margins improved owing to price increases and lower spend aided the company to register highest EBITDA and PAT of Rs 1.04bn and Rs 917mn respectively. EBITDA margins for the quarter improved to 33.6% vs. 22.8% YoY vs. 8.8% QoQ. We expect growth recovery in India beyond 2H and export business to drive earnings with lower spend. We have raised our FY21E/FY22E earnings by 12%/15%, respectively. Maintain Buy with 18xFY22E and TP at Rs 425.

Voda Idea gains 10% on board nod to raise Rs 25,000 crore via shares, debt

Shares of Vodafone Idea (VIL) rose as much as 10 per cent to Rs 13.21 on the BSE on Monday after the company’s board approved fund raising by up to Rs 25,000 crore by way of share sale and debt. After market hours on Friday, VIL had announced a fund raising of Rs 15,000 crore of equity and debt instruments each with aggregate quantum capped at Rs 25,000 crore. VIL is owned by Vodafone plc and the Aditya Birla group. READ MORE

BROKERAGE VIEW:: Prabhudas Lilladher on Coal India

Rating: HOLD | CMP: Rs 132 | TP: Rs 150 

Coal India (COAL) reported Q1FY21 EBITDA in line with our expectation. In spite of attractive valuations (EV/EBITDA at 2.5x FY22e), stock would continue to remain under pressure due to frequent stake sale by Govt and pressure on profitability in E-auction (contributes>50% of EBITDA) in light of weak global prices and sluggish demand. Release of additional supplies due to upcoming auction of coal mining would further dampen outlook on E-auction segment. Considering all these structural issues, we maintain Hold rating with TP of Rs150.

BROKERAGE VIEW:: ICICI Securities on Jubilant Life

RATING: BUY | TARGET PRICE: Rs 822

Considering recent rally in stock, we downgrade it to HOLD from Add with revised target of Rs822 based on FY22E, 8x pharma EBITDA and 4x LSI EBITDA (earlier: Rs749). We have raised target EV/EBITDA for pharma business from 7x to 8x considering potential for additional business from COVID-19 related contracts. Key downside risks: Regulatory hurdles and delay in ramp-up in Ruby-Fill.

Key upside risks: Additional business from Covid-19 related contracts.

BROKERAGE VIEW:: LKP Securities on IndusInd Bank

Core operating performance of Indusind Bank remains healthy. A higher COVID provision is likely to safeguard the bank from credit disruption from COVID. Thus we recommend a BUY with price target of Rs 705 (based on 1.1x FY22E Adj. BVPS). 

BROKERAGE VIEW:: Emkay Global on BPCL

RATING: BUY | TARGET PRICE: Rs 480
  • Our deep-dive analysis of BPCL is through the lens of a strategic buyer who will give due consideration to 1) significant capital locked in ongoing projects and thus long-term normalized earnings 2) operational autonomy enabling deep sweating of assets and cost optimization and critically 3) financial autonomy driving superior capital allocation.
  • BPCL's Rs330bn of downstream capex (45-50% of gross block) presently delivers little. If flawlessly executed, we estimate a USD1.5/bbl GRM upswing by (a) substituting high-margin propylene over LPG (b) optimizing gasoline yield and (c) prioritizing a similar PRFCCU in Mumbai. Petchem will separately add Rs26bn in EBITDA through FY25.
  • Operational autonomy of a PSU asset will give significant scope to drive productivity improvements. We expect revenue enhancement tools, outlet rationalization strategies and opex optimization - all put together could add over Rs10bn in EBIDTA. Likewise, capex can be more targeted and rationalized, thereby realizing 10% savings.
  • Private ownership with these levers could generate Rs240bn in mid-cycle EBIDTA through FY25. This implies a 30% earnings CAGR vs FY20 and puts BPCL's FV at Rs900/sh in FY24 or Rs640 discounted back. This is Rs160/sh higher than our existing TP of Rs480 and reflects the strategic premium or management alpha. Reiterate BUY/OW.

IPO Alert :: Happiest Minds subscribed 99% till 12:30 pm


Telecom, automobile companies lead earning downgrades, shows data

Analysts have downgraded earnings estimates for FY21 by 22 per cent. Firms in the telecom and automobile space have seen maximum downgrades, while health care is the only sector to have seen upgrades, according to the data analysed by Deutsche Bank Wealth Management. READ MORE

Vi is We: Two yrs after merger Voda Idea integrates to create new identity

Just when everyone had written Vodafone off in India, its joint venture telecom business in the country has sent out a strong signal that it’s going to be around, possibly for years to come. At a virtual roundtable called to announce a strategic decision by Vodafone Idea, the telco, saddled with huge losses and high debt, launched a new identity for itself Monday morning. It's the final step in the biggest integration of two telecom brands, top executives said. READ MORE

BofA Securities bets on RIL's 'layer of commerce', maintains 'BUY'

The note, co-authored by wrote Sachin Salgaonkar, Sukriti Bansal and Nafeesa Gupta, suggests that though there could be intermittent corrections in the stock in the near-term, the risk-reward is favorable from a 12-month perspective. Hence, it maintains a 'Buy' with the target price of Rs 2,355. READ MORE  


NEWS ALERT | Vodafone & Idea launch new brand name 'Vi'


Sebi's new margin norm may nudge trading towards buy-and-hold investing

Earlier, the concept of margin collection existed in derivatives, but not in the equity segment. Now a minimum margin of 20 per cent of trade value has to be collected on every transaction in the equity segment. This rule has been effective since January 1, 2020. But if there was a shortfall in margin collection, exchanges did not levy a penalty. They were going to begin doing so from September 1 but have now deferred it to September 16. READ MORE

Vodafone Idea trades higher ahead of the company's strategic announcement


Dixon Technologies hits record high, crosses Rs 10,000-crore in m-cap

Shares of Dixon Technologies continued their northward run, gaining 4 per cent on the BSE on Monday to hit a record high of Rs 8,935 on expectation of higher demand of consumer electronics. The company's market capitalisation crossed Rs 10,000 crore today after five straight day of gains. The stock surpassed its previous high of Rs 8,822, touched on August 28, 2020, on the BSE. With 10 per cent rally in the past week, the stock has rallied 208 per cent from its recent low of Rs 2,900, hit on March 24, 2020. READ MORE

More pain in store? Reality check for stock markets after a dream run

After a relentless run, stocks are set for a reality check as investors evaluate how much the markets can be devoid of economic fundamentals. On Friday, equities posted their biggest weekly drop since May, with the benchmark Sensex and Nifty dropping nearly 3 per cent amid a sharp sell-off in technology stocks in the US. READ MORE

Agri-related stocks decline

COMPANY LATEST(rs) CHG(%)
UPL 491.85 -3.26
MEGHMANI ORGAN. 69.25 -1.56
RALLIS INDIA 302.60 -1.30
P I INDUSTRIES 1849.00 -1.81
DHANUKA AGRITECH 751.15 -2.71
» More

India Inc mirrors GDP contraction in Q1: Revenues of 2,170 firms dip 24.3%

It’s not often that the macroeconomy and microeconomy move together and mirror each other. Mostly the latter reacts with some lag. In the April-June quarter (Q1), however, India Inc numbers have perfectly mirrored the country’s macroeconomic headline. READ MORE

Stock picking has become more interesting in these times: Samir Arora

Pace of recovery in markets worldwide has been unprecedented and no one could have anticipated the extent. It has generally been said that investors should not time markets and stay invested, but still this rally has been absolutely staggering. Next few triggers have to be related to opening up the economy and the strength or otherwise of the underlying recovery. We also need that there not be a strong second wave and that somewhere in the horizon there be prospects of an effective vaccine. READ MORE

Marico, Tata Motors: 5 Nifty50 stocks that can to do well in a weak market

Marico Limited (MARICO): After conquering the 200-days moving average (DMA), the counter has successfully managed to trade above the 50-DMA with “Higher High, Higher Low” formation. This reflects a strong upward momentum with price absorbing selling pressure at higher levels. Going forward, a decisive close above Rs 380 levels may open the doors for a further upside. It can hit Rs 410 and then Rs 418 levels over the next few sessions. However, the stock needs to defend Rs 360 on a closing basis to maintain its upward bias. READ MORE

VST Tillers rallies 18% in 5 days on strong power tillers sales in August

The company sold 2,638 power tillers in August 2020 as against 1,437 in August 2019, registering 83.57 per cent year-on-year (YoY) growth. It had sold 897 tractors during last month, as compared to 813 in the corresponding month of the previous year. READ MORE

Top losers on BSE at this hour

COMPANY PRICE(rs) CHG(%)
JUBILANT LIFE 785.90 -5.27
ADANI GREEN 517.45 -4.99
FUTURE RETAIL 106.85 -4.98
FUTURE CONSUMER 10.37 -4.95
IFB INDUSTRIES 527.95 -4.61
» More on Top Losers

Analysts positive on Jubilant Life despite 52% dip in Q1 profit; here's why

Shares of Jubilant Life Sciences skid as much as 6.8 per cent to hit a low of Rs 773 on the BSE on Monday after the company's June quarter profit more-than-halved to Rs 88 crore. The pharmaceutical firm's consolidated net profit came in at Rs 88.01 crore, down 52.42 per cent from Rs 184.98 crore reported in the year-ago period. Consolidated total revenue from the operations stood at Rs 1,892.92 crore for the quarter under review, as against Rs 2,181.86 crore for the same period a year ago. READ MORE

Mahindra & Mahindra dips 3%


Rupee opening

Rupee opens lower at 73.16/$ vs Friday's close of 73.14 against the US dollar

Tata Motors DVR surges 11% after Tata Sons buys additional shares

Shares of Tata Motors Differential Voting Rights (DVRs) rallied 11 per cent to Rs 62.50 on the National Stock Exchange (NSE) on Monday after its promoter Tata Sons acquired more than 5 million shares, worth Rs 30 crore, via open market on Friday. On September 4, Tata Sons purchased 5.3 million shares, representing 1.04 per cent stake of Tata Motors DVR, at price of Rs 56.02 per share on the NSE via bulk deal, the exchange data shows. The names of the sellers were not ascertained immediately. READ MORE

Bharti Infratel up 4%


BUZZING STOCK:: Tata Motors DVR up 8%


Sharp sell-off in the markets


NEWS ALERT :: L&T Construction bags order in the range of Rs 2,500-5,000 cr for its power transmission & distribution biz

Click here for details


MARKET CHECK


Sterling & Wilson up 6% on order wins worth Rs 1,600 crore in Australia

“The company along with its branch and Australian subsidiary has bagged two large scale solar projects in the country which will have an installed capacity of over 300 MW. The new projects have been secured from global independent power producer (IPPs), the work for which is expected to commence immediately,” Sterling & Wilson Solar said in a press release. READ MORE

Lakshmi Vilas Bank adds 1.5% on fund raising plan

>> Lakshmi Vilas Bank (LVB) plans to raise up to Rs 1,500 crore to fund business growth and increase foreign shareholding to up to 74 per cent, the private lender said in a notice.


Repco Home Fin locked in 5% upper circuit post Q1 nos


Sterling and Wilson Solar gains 5% on new order

>> Engineering firm Sterling and Wilson Solar on Sunday announced that it has bagged orders worth AUD 300 million (Rs 1,600 crore) for two large solar projects in Australia


PVR trades flat with a negative bias

>> Multiplex major PVR has deferred its capital expenditure plans in a bid to control costs as the company braces for a significant impact on its profitability in the current fiscal due to the ongoing Covid-19 pandemic


Result Impact | Jubilant Life Sciences dips 3%

>> Drug firm Jubilant Life Sciences on Friday reported a 52.42 per cent decline in its consolidated net profit to Rs 88.01 crore for the quarter ended June 30, 2020.


Vodafone Idea surges over 7% ahead of 'strategic' announcement by the Co


Sectoral trends at Open


Sensex Heatmap at Open


Opening Bell


Opening Bell :: Sensex mildly in the red


NEWS ALERT :: China's yuan-denominated August imports down 0.5% YoY

>> Yuan dominated exports up 11.6% YoY

>> China posted a trade surplus of $58.93 billion for the month of August

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


Markets at Pre-Open


Markets at Pre-Open


Happiest Minds IPO opens today. Key things to know before you invest

Around 42.29 million shares will be put on the block, wherein the fresh issue comprises 6.62 - 6.66 million shares and OFS consists of 35.66 million shares. The price band of the offer has been set between Rs 165-166. At the upper price band, the company will garner Rs 702 crore. The bid lot has been fixed at 90 shares and in multiples thereof. The offer closes on September 9. READ MORE

BROKERAGE VIEW :: MOFSL on Nalco

CMP: Rs 36 | TP: Rs 42 (+16%) | Reco: Buy

>> Aluminum LME prices have recovered to pre-COVID levels and turned positive YoY. Alumina prices are also hovering near pre-COVID levels. Accordingly, we have raised our LME aluminum estimate to USD1,675/t in FY21 (earlier USD1,575/t) and USD1,750/t (earlier USD,1700/t) in FY22. With integrated operations, NACL is best placed to benefit from recovery in prices.

>> We expect NACL to benefit from lower coal prices due to improved coal availability in India and lower input commodity costs such as furnace oil, etc. We maintain our positive stance on NACL considering its integrated business model, high cash levels, and attractive dividend yield.

>> We value the stock at 5.5x FY22E EV/EBITDA to arrive at TP of INR42. Buy

BROKERAGE VIEW :: MOFSL on Jubilant Life Sciences

CMP: Rs 830 | TP: Rs 975 (+18%) | Reco: Buy

>> We expect a 4% earnings CAGR over FY20–22, led by a 2.5%/3.5% sales CAGR in Specialty Pharma / Specialty Intermediates-Nutritional Products as well as
a steady EBITDA margin. The earnings CAGR is partially impacted due to Covid-19-led temporary slowdown in the Radiopharma, CDMO, and Life Sciences Chemicals segments.

>> the LSI business, arriving at target price of INR975 on an SOTP basis. While the uptick in earnings growth is gradual (partly dented by COVID-19 in FY21), we remain positive on JLS on an attractive valuation of 7x FY22 EV/EBITDA. Maintain Buy.

BROKERAGE VIEW :: MOFSL on Coal India

CMP: Rs 132 | TP: Rs 190 (+44%) | Reco: Buy

>> Volumes and e-auction realizations have been under pressure on decline in power demand and significant stocks at both mines and power plants. However, power demand is showing signs of improvement and we expect volumes to recover in 2HFY21.

>> Furthermore, we expect Coal India to tide over the current situation given its large cash position (Net cash: ~INR230b). The stock trades attractively at ~1.6x FY22E EV/adj. EBITDA (v/s historical average of 7x), P/E of 5x (v/s average of ~13x) and offers a dividend yield of ~10%. Maintain Buy with a target price of INR190/share.

Top stocks to watch out for today

Vodafone Idea on Friday decided to raise up to Rs 25,000 crore by way of share sale and debt from new investors even as its UK parent has planned to stay aloof. Further, the company is likely to make a strategic announcement today. According to reports, the telecom major is set to rebrand itself.
 
Lakshmi Vilas Bank (LVB) plans to raise up to ~1,500 crore to fund business growth and increase foreign shareholding to up to 74 per cent, the private lender said in a notice.
 
PVR: Multiplex major PVR has deferred its capital expenditure plans in a bid to control costs as the company braces for a significant impact on its profitability in the current fiscal due to the ongoing COVID-19 pandemic. READ MORE    


BROKERAGE VIEW :: MOFSL on RBI's revised PSL guidelines

>> We believe that the revised RBI guidelines are a step in the right direction to bring in higher emphasis on inclusive banking and improve credit flow toward the credit-deficient and weaker sections of the economy. While most banks were largely in compliance with the current requirement at an aggregate level, the increase in limits along with the change in weightages could compel some banks to lend higher to these categories or go for higher purchase of PSLCs, which could have an impact on their cost profile. At the same time, banks with surplus PSL and higher share of credit toward sub-segments where targets have been increased would likely benefit from higher demand. Thus, these banks could earn higher income from sale of PSLCs (BANDHAN, AUBANK and PNB are likely to benefit). We maintain our preference for ICICIBC, HDFCB, and SBIN.


Nifty outlook and stock recommendations by Sameet Chavan of Angel Broking

Looking at the technical set up, with last week’s price activity, we can see a formation of ‘Bearish Engulfing’ pattern on weekly chart. It is generally considered a reversal pattern and a breach of 11,300 would result into a confirmation of the same. In this case, we may see immediate decline towards 11,150-11,000-10,870 this week. However, it is important to take a note that since the larger degree trend is strongly up, we would consider any decline as a corrective move within the uptrend and hence, it will nowhere be closer or similar to March’s mayhem. In fact, it would certainly provide better opportunities to accumulate quality propositions for a longer run. READ MORE

Stock picks by Prabhudas Lilladher: Buy Take Solutions, Sun Pharma

BUY TAKE SOLUTIONS | CMP: Rs 49.4 | Target: Rs 65-70 | Stop Loss: Rs 44
 
The stock has witnessed a decent correction and has indicated signs of bottoming out near 46 levels and we anticipate a reversal. The RSI indicator has consolidated and is well placed for a trend reversal with the bias improving. With the chart looking good, we suggest to buy and accumulate this stock for an upside target of 65-70 levels, keeping the stop loss of 44. READ MORE

Bulk deals on BSE as on Friday

Bulk deals on NSE as on Friday

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


Rupee check

Source: Bloomberg


Oil drops more than $1 after Saudi price cuts, demand optimism fades

Oil prices dropped more than $1 a barrel on Monday, hitting their lowest since July, after Saudi Arabia made the deepest monthly price cuts for supply to Asia in five months as optimism about demand recovery cooled amid the coronavirus pandemic. READ MORE

SGX Nifty hints at a red start

>> At 8:30 am, the index was at 1,318.50 level, down 56.50 points or 0.50 per cent

Asian stocks mixed

Source: Reuters


Wall Street on Friday :: Indices ended lower on tech rout

Source: Reuters


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