MARKET WRAP: Sensex tanks 661 pts, Nifty Bank slips 3%; India VIX jumps 6%

Topics Markets | Wipro | MindTree

A broker reacts while trading at his computer terminal at a stock brokerage firm in Mumbai (Photo: Kamlesh Pednekar)
Extended their early losses, the Indian stock market ended around 2 per cent lower on Tuesday, with financials, auto, and metal stocks dragging the indices.

The S&P BSE Sensex tumbled 661 points or 1.8 per cent to end the day at 36,033.06 levels. The index had earlier slipped below the 36,000 mark in the intra-day deals. IndusInd Bank and Axis Bank (both down over 5 per cent) were the top Sensex laggards. Besides, both HDFC and HDFC Bank slipped up to 3 per cent after the latter conducted a probe into allegations of improper lending practices in its vehicle-financing operation.

Meanwhile, the volatility index, India VIX rose 5.73 per cent to 26.70 levels.

The broader Nifty50 index also slipped below the 10,650 levels and ended at 10,607, down 195 points or 1.81 per cent. The trend among Nifty sectoral indices was negative, led by the Nifty Bank index, down 3 per cent. Nifty Pharma was the only index that ended in the green - up 0.48 per cent. 

In the broader market, both the S&P BSE MidCap as well as SmallCap indexes slumped around 1 per cent.

Global markets 

Global stocks slipped on Tuesday, oil sagged and a safety bid supported the dollar as simmering Sino-US tensions and new coronavirus restrictions in California kept a lid on investor optimism with earnings season getting underway.

MSCI’s All-Country World Index edged down 0.4 per cent, after touching a 20-week high on Monday. The pan-European STOXX 600 opened 1.5 per cent lower and was heading for its worst day in 14 sessions after technology stocks dropped 3.4 per cent. This followed a slump a day earlier in the tech-heavy Nasdaq.

S&P 500 futures were 0.5 per cent stronger after the index lost 0.9 per cent on Monday.

(With inputs from Reuters)


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

"The markets exhibited a high correlation with the global markets and with the virus infections hitting day highs in India, the uncertainty caught up with the markets. Global markets were weak following rising infections in US and US-China tensions being back in the news. Indian markets were also worried about the increasing number of localised lockdowns which would in turn again slowdown the predicted recovery for businesses. Volatility is expected to remain and investors are advised to be cautious and be stock specific in their trades."

SECTOR WATCH:: Nifty Pharma ends in the green

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


The S&P BSE Sensex declined 661 points or 1.8 per cent to end at 36,033 while NSE's Nifty ended at 10,607, down 195 points or 1.81 per cent. 

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

Rallis India surges 10% in weak market; stock nears record high

The trading volumes on the counter jumped an over five-fold with a combined around 4 million shares changing hands on the NSE and BSE so far. The up move has taken the counter close to its record high level of Rs 299 hit on May 3, 2015. READ MORE

Sectoral Trends :: Nifty Services Sector index slips 2%

Apparel retailers to post operating losses in Q1FY21 as revenues plunge 80%

After a weak March quarter, apparel retailers are expected to face the brunt of the lockdown in the June quarter, with revenues falling over 80 per cent as compared to the year ago quarter. Unlike retailers such as Avenue Supermarts which gets a majority of sales from groceries, apparel retailers have been operating with a minimal number of stores and are pegged back by ongoing restrictions. READ MORE

Mindtree Q1 net profit grows 129.8% YoY at Rs 213 crore; revenue rises 4%

Mid-tier IT company, Mindtree, on Tuesday posted a 129.8 per cent year-on-year (YoY) growth in its consolidated net profit at Rs 213 crore for the quarter ended June 2020 (Q1FY20-21). On a sequential basis, the numbers grew 3.3 per cent.
The company's revenue came in at Rs 1,908.8 crore, up 4.1 per cent YoY and down 6.9 per cent QoQ. READ MORE

BROKERAGE VIEW :: Why are markets falling today?

Sector Watch :: Pharma stocks trade higher; Biocon top gainer

March Telecom Data :: Reliance Jio adds 4.68 million new subscribers

>> Bharti Airtel loses 1.26 million subscribers

>> Vodafone Idea loses 6.35 million subscribers

(Source: Trai)
(rs CR)
VODAFONE IDEA 9.38 9.70 9.32 -0.38 -3.89 36.61
RELIANCE COMMUNI 2.58 2.58 2.58 0.12 4.88 1.93
QUADRANT TELE. 0.21 0.21 0.19 0.01 5.00 0.02
BHARTI AIRTEL 592.40 596.60 578.70 5.65 0.96 53.53

Eveready hits 10% upper circuit on report of Dabur promoters picking stake

Shares of Eveready Industries were locked in 10 per cent upper circuit at Rs 88.90 on the BSE on Tuesday on the back of heavy volumes amid reports that Dabur promoters have picked up nearly 8 per cent stake in the battery maker. Till 01:19 pm, a combined 3.41 million equity shares, representing 4.69 per cent of the company's total equity, had changed hands on the NSE and BSE. There were pending buy orders for around 600,000 shares on the NSE and BSE, exchange data shows. READ MORE

Rupee Closing

Rupee settles weaker at 75.42 per US dollar vs Monday's close of 75.19/$

June Quarter Result :: Mindtree's consolidated profit comes in at Rs 213 crore

>> EBIT margin 13.7%

>> Revenue at Rs 1,909 crore; in dollar terms $25.32 crore

>> EBIT at Rs 262 crore

Infosys Q1 preview: Revenue may dip 4%; magnitude of pricing pressure eyed

After peers Tata Consultancy Services (TCS) and Wipro, Infosys is scheduled to release its financial results for the April – June quarter of the fiscal year 2020-21 (Q1FY21) on Wednesday, July 15. The IT is expected to report subdued numbers due to disruptions caused by the Covid-19 pandemic. Meanwhile, the fall in the earnings before interest and tax (EBIT) margin could be limited due to the benefit from rupee depreciation, cut in travel costs, and optimisation on variable costs, according to analysts. READ MORE

NEWS ALERT :: TDSAT refuses to stay TRAI order directing discontinuation of premium plan

>> TDSAT allows Trai time to file reply to Vodafone Idea’s plea challenging TRAI directions.

>> Case likely to be heard on July 16.

Alert: TDSAT is Telecom Disputes Settlement and Appellate Tribunal 

         Vodafone Idea on Monday had moved the TDSAT against the TRAI notice putting the premium plans on hold

Arvind Fashions falls for 5th straight day ahead of closure of rights issue

Shares of Arvind Fashions were locked in 5 per cent lower circuit at the bourses for the second straight day, down 5 per cent at Rs 149.25 on the BSE on Tuesday, ahead of the closure of its rights issue. The stock of the branded apparel company dipped for the fifth straight day, and has fallen 15 per cent during this period. Till 12:54 pm, a combined around 41,000 equity shares had changed hands and there were pending sell orders for 270,000 shares on the NSE and BSE. READ MORE

Liquidity measures help reduce financing cost in corporate bond mkt: RBI

Yields have dropped and the spreads have compressed despite foreign portfolio investment (FPI) outflows of around $3 billion from corporate bonds in 2020, it said.
Over the past few months, RBI infused liquidity through long-term repo operations (LTROs), targeted long term repo operations (TLTROs), TLTRO 2.0, special refinance facilities to NABARD, SIDBI, NHB and Exim Bank, and a special liquidity facility for mutual funds. READ MORE

Sensex Heatmap at this hour

European indices open lower

NEWS ALERT | RBI may relax provisioning norms for banks amid Covid-19 crisis: Agencies

MARKET UPDATE:: Sensex falls below 36,000

MARKET UPDATE:: Nifty breaches 10,600

SECTOR WATCH:: Nifty Pharma index trades in the green in an otherwise weak market

Securitisation volume dips 85% to Rs 6,200 cr in Q1FY21 on slow collections

The Securitisation volume plunged by 85 per cent to Rs 6,200 crore in the first quarter ended June 2020 (Q1FY21) on slow collections following the lockdown in India. The loan moratorium also impacted volumes, according to rating agency CRISIL.
However, in stark contrast with the overall market performance, transactions backed by gold-loan receivables bucked the trend. They comprised nearly half of the total securitisation transactions in the first quarter. READ MORE

STOCK ALERT :: Burman family picks stake in Eveready Industries

>> Family says, picked stake in personal capacity

>> Stake now at  20%

>> Burman family now largest investor in Eveready

MARKET UPDATE :: Sensex exhibits weakness, tumbles 600 pts

MARKET UPDATE:: Volatility index, India VIX, rises 5%

IPO ALERT :: Rossari Biotech's IPO fully subscribed till 12:15 pm

SBI AGM :: Expect to tide over Covid-19 related uncertainties in short to medium term

>> Legacy stress is fully recognised and provided for

>> Deposits grew faster in FY20 despite Covid-19 outbreak

>> High deposit growth pushed bank's market share up 46 bps

>> Much of domestic advances growth came from personal segment in FY20 

(As reported by CNBC TV18)

Passenger vehicle sales decline 49.59% in June over coronavirus, lockdown

According to the latest data by the Society of Indian Automobile Manufacturers (SIAM), two-wheeler sales were also down 38.56 per cent at 10,13,431 units as compared to 16,49,475 units in the same month last year. READ MORE

NEWS ALERT :: June Wholesale inflation at (-)1.81%

>> Whole food inflation rises to 3.05% from 2.31% MoM

(As reported by CNBC TV18)

Bharti Airtel trades higher in an otherwise weak market

Individual investors likely behind latest market uptick, suggests data

Individual investors are the likely force behind the latest market rally. Sample this: The Nifty50 index has rallied 10 per cent since June 15 and during this period, and foreign portfolio investors (FPIs) —considered to be the main drivers for the markets — have sold shares worth nearly Rs 5,000 crore. The buying by mutual funds, which normally offset the selling by FPIs, too, remained muted at less than Rs 2,000 crore for the period under consideration. READ MORE

Plenty of catalysts for Biocon over the next few months, say analysts

Rising almost 10 per cent in intra-day trade, shares of Biocon scaled an all-time high of Rs 455 apiece on Monday, before closing the day with minor gains. The Drug Controller General of India’s (DCGI’s) nod for the launch of Covid-19 treatment biologic Itolizumab (ALZUMAb) in an injectable form for emergency use, coupled with the company’s claim of its efficacy, constituted major triggers. READ MORE

HDFC twins, RIL top contributors to Sensex's 600-point plunge today

Tata Communications hits over 2-year high; stock zooms 112% in 3 months

Shares of Tata Communications were locked in the 5 per cent upper circuit for the second straight day on the BSE at Rs 700.55 on Tuesday, hitting an over two-year high in an otherwise weak market. The stock of the Tata group company was trading at its highest level since December 15, 2017. In the past three months, it had rallied 112 per cent after the company delivered strong operating performance during the January-March quarter (Q4FY20). READ MORE

MARKET CHECK :: Sensex tanks 500 pts

Financial stocks decline; Nifty Bank dips 2%; HDFC twins slide up to 3%

Financial counters, including heavyweights like HDFC Bank and HDFC, came under selling pressure on Tuesday. Nifty Bank index skid 2.3 per cent to hit an intra-day low of 21,578 in morning deals, and was among the top drags on the NSE. Besides, Nifty PSU Bank index and Nifty Private Bank index declined 3 per cent and 2.4 per cent, respectively. READ MORE

Mindtree gains 1% ahead of Q1 nos; here's what to expect from the IT firm

Shares of Mindtree were trading over 1 per cent higher on the BSE on Tuesday ahead of its June quarter results for the financial year 2020-21 (Q1FY21) due later in the day. At 10:16 am, the stock was trading nearly 1.5 per cent higher at Rs 1,022.50. In comparison, the S&P BSE IT index was 0.4 per cent up at 16,057 levels. The benchmark S&P BSE Sensex was trading nearly 1 per cent lower at 36,337 points. READ MORE

Nifty companies may see over 25% profit drop in Q1

The April-June 2020 quarter is likely to have been a washout for India Inc as economic activity reduced significantly during the period owing to lockdown imposed by the government to slow the spread of the Covid-19 pandemic. Leading brokerages expect a 27.3 per cent year-on-year (YoY) decline in the combined net profit (adjusted for exceptional gains and losses) of the country’s top 50 companies, which make up the Nifty50 benchmark index. The index companies’ combined net revenues are estimated to fall 27.1 per cent YoY in the June quarter. READ MORE

BF Utilities surges 10% as Radhakishan Damani buys 1% stake in June quarter

Shares of BF Utilities were locked in 10 per cent upper circuit at Rs 220.95 on the BSE on Tuesday after investor Radhakishan Shivkishan Damani bought more than one per cent stake in the Kalyani group company in the April-June quarter. As on June 2020, Radhakishan Damani held 1.3 per cent stake, or 491,000 equity shares, in BF Utilities, according to shareholding pattern data filed by the company on Monday. READ MORE

Rupee Opening

Rupee opens 19 paise weaker at 75.35 per US dollar vs Monday's close of 75.19/$

Most active stocks by volume

VODAFONE IDEA 9.59 -1.74
SUZLON ENERGY 4.68 -4.88
B H E L 39.50 -7.17
S A I L 34.90 -2.38
» More on Most Active Volume

MARKET UPDATE:: Nifty drops over 100 points

5Paisa Capital hits 52-wk high after posting first-ever quarterly profit

Shares of 5Paisa Capital were locked in 5 per cent upper circuit at Rs 324.60 on the BSE on Tuesday after the company posted net profit of Rs 3.74 crore in June quarter (Q1FY20), against net loss of Rs 55 lakh in the year-ago quarter. The company has reported quarterly profits for the first time since the launch of 5Paisa in March 2016. The stock was trading at its 52-week high level. It has rallied 99 per cent in the past month, as compared to 8 per cent rise in the S&P BSE Sensex in the same period. READ MORE

Oil demand may hit 100 million b/d in 2021 if economic recovery sustains

An accelerated shift to cleaner energy and electric vehicles along with vehicle efficiency improvements had already started to gnaw away at oil demand well before the coronavirus hit.
What is striking is that those transportation sectors seen as more resistant to energy transition due to the challenges of them running on alternative fuels – airlines and shipping – have been hardest hit and will be the slowest to recover. READ MORE

Broader market check :: S&P BSE MidCap index down 0.5%

MARKET CHECK :: Sensex extends losses, down 300 pts now

Sector Watch :: Nifty Bank index tumbles nearly 400 pts

Bata India shows strength in early trades

>> In an exchange filing, the company informed that the revenue from operations for the quarter ended March 31, 2020, of Rs 6197.03 million have decreased by 9 per cent over the corresponding period last year primarily due to suspension of the Company's stores towards second half for the month of March 2020 as per government directives for Covid- 19.

Vodafone Idea slips 2%

>> In a fresh twist to the controversy over premium telecom plans, Vodafone Idea on Monday moved the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), seeking a stay on the regulator’s diktat to block such schemes.

Pfizer gains 1% on 'fast track' tag given to two potential Covid drugs

>> Two experimental coronavirus vaccines jointly developed by German biotech firm BioNTech and US pharmaceutical giant Pfizer have received 'fast track' designation from the US drug regulator, the companies said on Monday.

HDFC extends decline into second day, down 2.5%

Wipro trades higher in a weak market ahead of Q1 nos

Sectoral trends on NSE at Open

Sensex Heatmap :: Tech stocks supporting markets, financials decline

Opening Bell

Opening Bell

NEWS ALERT :: China’s June imports up 6.2% & exports up 4.3% YoY in Yuan terms

>> January-June Yuan denominated imports down 3.3% and exports down 3% YoY

>> China says, foreign trade development facing "more grim and complicated external environment"

(Source: Reuters)

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

Markets at Pre-open

Markets at Pre-open

BROKERAGE VIEW :: Motilal Oswal Financial Services on SAIL

CMP: Rs 36 | TP: Rs 34 (-5%) | Reco: Neutral

>> We expect sales volumes to decline ~4% in FY21 on weak domestic demand; however, we expect volumes to grow at ~10% to 15.1mt in FY22, implying a CAGR of 3% over FY20–22.

>>  We expect 2HFY21 to be better operationally, with recovery coming in volumes from key sectors such as Infra and Construction. We expect the adverse impact of lower prices and negative operating leverage to be offset by lower raw material cost in FY21; as a result, we build in moderate decline in margins.

>> We value the stock at 6.5x FY22E EV/EBITDA at INR34/sh.

Stocks to watch: Wipro, Mindtree, Cipla, HDFC, Lakshmi Vilas Bk, Bata India

Wipro: The Bengaluru-headquartered information technology (IT) services company will announce its financial results for the quarter ended June 2020 (Q1FY21) on Tuesday, July 14. 
Earnings today: Besides Wipro, 34 other companies are slated to announce their quarterly results today including Mindtree, and Oberoi Realty.
HDFC: Mortgage lender HDFC Ltd on Monday said it is planning to raise up to Rs 45,000 crore by issuing debt securities and will seek approval of shareholders in its upcoming AGM later this month. READ MORE 


BROKERAGE VIEW :: Macquarie on HDFC Bank

Maintains 'Outperform', Target price: Rs 1,124

>> Senior management exits, no major impact for now

>> Expect RBI's nod for new CEO by next month; likely candidate Sashi Jagdishan


>> Covid-19 has made another recapitalisation inevitable

>> Recovery will be complicated due to weak financial sector

>> Low interest rates needed for next credit and investment cycle

>> RBI's liquidity measures failed to lift credit growth

>> Post Covid-19 recovery will be prolonged due to existing financial crisis

>> Forecast another 125 bps rate cut by March 2021

NEWS ALERT :: Cipla gets US FDA nod for Icatibant Injectable pre-Filled syringe

Nifty outlook & stock calls by Anand Rathi: Buy Wipro, Sun Pharma

BUY NIFTY | TARGET: 10,950 | STOP LOSS: 10,700
The Nifty index is in a consolidation mode where the support is continuously shifting higher. The momentum indicators and oscillators are very well in the 'buy' mode on a weekly scale, which hints that bulls are tightening the grip and the current pullback is likely to extend further. The volatility index, IndiaVIX, is hovering near 25 levels which is giving comfort to the bulls. 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

NEWS ALERT :: Singapore economy enters recession, second-quarter GDP plunges record 41.2%

Singapore's economy slipped into recession in the second quarter, contracting by a record 41.2 per cent from the previous three months and is facing its biggest slump ever this year as coronavirus lockdown steps hammer the trade-reliant city-state. READ MORE

Rupee check

Source: Bloomberg

Oil prices drop on demand recovery fears amid US virus surge

>> Oil prices fell around 2% in early trade on Tuesday on worries that new clampdowns on businesses to stem surging coronavirus cases in California and other US states could threaten the nascent recovery in fuel demand.

>> US West Texas Intermediate (WTI) crude CLc1 futures slid 84 cents, or 2.1%, to $39.26 a barrel at 7:10 am, while Brent crude LCOc1 futures fell 77 cents, or 1.8% to $41.95 a barrel.

(Source: Reuters)

SGX Nifty hints at weak start

>> At 8:23 am, the index was at 10,753 level, down 58 points.

Asian markets struggle to digest coronavirus spike

Source: Reuters

S&P 500 and Nasdaq end lower after sharp drop in tech titans

Source: Reuters

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