MARKET WRAP: Sensex ends 463 pts lower, Nifty below 11,000; SBI dips 4.6%

Topics Markets | MARKET WRAP

Thursday's carnage on D-Street dragged indices to fresh five-month lows with the S&P BSE Sensex slipping below the 37,000 mark. On the other hand, the broader Nifty50, too, breached 11,000 mark in the intra-day trade. The Sensex plunged 787 points intra-day to hit a low of 36,694, while the Nifty50 shed 204 points to touch 10,881 mark. Mixed corporate earnings, weak domestic and global cues, and continuous selling by foreign portfolio investors (FPIs) were among the key reasons for the fall.

The Sensex ended 463 points, or 1.23 per cent, lower at 37,018 level after recovery in stocks like Maruti Suzuki, Reliance Industries, HDFC twins, and Hindustan Unilever helped the index to pare losses partially.

Vedanta, State Bank of India, Tata Motors, and Bharti Airtel were the top laggards at close, while Maruti Suzuki, Reliance Industries, Power Grid, and Bajaj Auto ended the day as top gainer. The Nifty50, too, ended the day with losses of 138 points, or 1.24 per cent, at 10,980 mark.

"Global markets were expecting a more dovish US Fed and are disappointed by 'mid-cycle adjustment' this has led to a rise in the dollar (DXY was at 2 year high) this is not good for EM equities. For Indian equities, this is on top of the headwinds it has faced recently, like FII selling on account of tax proposals," said Vivek Ranjan Misra, head of fundamental research at Karvy Stock Broking.

Adding: "The next important trigger is the RBI policy meeting next week, and any policy decision the government may take to stimulate the economy. We continue to believe that the economy should stabilize in Q2 FY 2019-20 and the markets should be in better shape in a couple of quarters.”

BROADER MARKETS

In the broader market, the S&P BSE Mid-cap slipped 117 points, or 0.86 per cent, to end at 13,526 level while the S&P BSE Small-cap settled at 12,552 level, down 140 points, or 1.1 per cent.

Sectorally, all the indices ended in the red, barring the Nifty Auto index. Nifty Metal index slipped the most, ending the day with a cut of over 3 per cent, followed by Nifty PSU Bank index, down 2.66 per cent. NIfty Auto index ended the day flat.

 
MARKET OUTLOOK

 
Analysts say there is more pain in store for the markets, as developments – both global and domestic – are likely to dent sentiment further. Over the next few months, the progress of monsoon, which will have a bearing on inflation and the interest rate trajectory, corporate earnings and the overall health of the Indian economy, besides global cues, are some of the factors that will have a bearing on how the markets pan out. READ MORE

GLOBAL CUES

Asian shares slipped to six-week lows on Thursday while the dollar jumped to two-year highs as the US Federal Reserve rattled markets by signaling that its first rate cut in more than a decade was not the start of a lengthy easing cycle. Japan's Nikkei ended the day flat, up 0.09 per cent, while South Korea's Kospi ended 0.36 per cent lower.


3:41 PM IST

3:40 PM IST

3:40 PM IST The Sensex ended 463 points, or 1.23 per cent, lower at 37,018 level, while the Nifty50, too, ended the day with losses of 138 points, or 1.24 per cent, at 10,980 mark.

3:17 PM IST

3:17 PM IST

3:05 PM IST -- The market leader in Oral Care, announced the appointment of Ram Raghavan as Managing Director effective August 01, 2019. Prior to this role, Mr. Raghavan served as Vice-President Marketing of Asia Pacific Division of Colgate-Palmolive.    -- Mr Raghavan joined Colgate India in 1997 and progressed through a series of leadership roles across various divisions and subsidiaries of Colgate-Palmolive. In 2003, he moved to Hong Kong to join the Asia-Pacific Division. In 2004, he moved to Colgate China and sequentially managed the Toothbrush and Toothpaste businesses

3:03 PM IST

2:59 PM IST It wasn’t too long ago that investors were questioning the health of the US consumer after a disappointing set of December retail numbers. Aside from early 2017, our consumption indicator has produced one of the longest periods of improvement since 1991. Yesterday’s rate cut will no doubt help credit conditions underwriting the S&P 500 Consumer Discretionary and keeping Staples relatively well bid

2:57 PM IST Asian markets fell on Thursday, tracking losses on Wall Street, after the US Federal Reserve cut rates for the first time in more than a decade but failed to offer a clear signal on future easing. The move to ease the cost of borrowing was well telegraphed and meant to inoculate against global risks washing onto American shores, but financial markets were whipsawed by confusion over whether another cut would be coming. Hong Kong shares were down 0.8 percent in afternoon trade after the city's de facto central bank matched the Fed's cut, lowering rates for the first time since 2008. (Source: Agencies) markets

2:52 PM IST Shares of Delta Corp hit an over two-year low of Rs 141 per share, down 8 per cent intra-day on the National Stock Exchange (NSE) on Thursday, after foreign portfolio investors (FPIs) offloaded about 1 percentage point stake in the company through open market. The stock was trading at its lowest level since May 23, 2017, when it hit a low of Rs 139 apiece on the NSE in intra-day deals. READ MORE

2:50 PM IST

2:46 PM IST

LIVE UPDATES

Sectoral trends at NSE at close


Top gainers and losers on S&P BSE Sensex at close


Closing Bell

The Sensex ended 463 points, or 1.23 per cent, lower at 37,018 level, while the Nifty50, too, ended the day with losses of 138 points, or 1.24 per cent, at 10,980 mark.

Market check | Nifty reclaims 11,000-mark


Market check | Sensex begins recovery


Company Update | Colgate-Palmolive (India)

-- The market leader in Oral Care, announced the appointment of Ram Raghavan as Managing Director effective August 01, 2019. Prior to this role, Mr. Raghavan served as Vice-President Marketing of Asia Pacific Division of Colgate-Palmolive. 
 
-- Mr Raghavan joined Colgate India in 1997 and progressed through a series of leadership roles across various divisions and subsidiaries of Colgate-Palmolive. In 2003, he moved to Hong Kong to join the Asia-Pacific Division. In 2004, he moved to Colgate China and sequentially managed the Toothbrush and Toothpaste businesses

MARKET ALERT | India VIX up 10%, hovers at 1-month high


COMMENT :: Jefferies on US Fed rate cut

It wasn’t too long ago that investors were questioning the health of the US consumer after a disappointing set of December retail numbers. Aside from early 2017, our consumption indicator has produced one of the longest periods of improvement since 1991. Yesterday’s rate cut will no doubt help credit conditions underwriting the S&P 500 Consumer Discretionary and keeping Staples relatively well bid

GLOBAL MARKET UPDATE

Asian markets fell on Thursday, tracking losses on Wall Street, after the US Federal Reserve cut rates for the first time in more than a decade but failed to offer a clear signal on future easing. The move to ease the cost of borrowing was well telegraphed and meant to inoculate against global risks washing onto American shores, but financial markets were whipsawed by confusion over whether another cut would be coming. Hong Kong shares were down 0.8 percent in afternoon trade after the city's de facto central bank matched the Fed's cut, lowering rates for the first time since 2008.

(Source: Agencies)

markets

Delta Corp falls 8%, hits over two-year low after FPIs sell stake

Shares of Delta Corp hit an over two-year low of Rs 141 per share, down 8 per cent intra-day on the National Stock Exchange (NSE) on Thursday, after foreign portfolio investors (FPIs) offloaded about 1 percentage point stake in the company through open market. The stock was trading at its lowest level since May 23, 2017, when it hit a low of Rs 139 apiece on the NSE in intra-day deals. READ MORE

Market check


Market check


Zee may have offloaded its stake but it isn't enough to satisfy investors

The sale of a stake in Zee Entertainment Enterprises Ltd. to a foreign fund failed to cheer investors, who say the transaction leaves founders of India’s largest publicly-traded television network with the need to raise a further Rs 68 billion ($983 million) to pare debt.
 
Zee’s shares tumbled 5.8% to Rs 340.6 in a fourth day of declines, taking the year’s drop to about 30%. Invesco Oppenheimer Developing Markets Fund agreed to buy as much as 11% stake in Zee for about Rs 42.24 billion at Rs 400 each, the company said Wednesday. READ MORE

Market check


Market check


NEWS ALERT | SML Isuzu July auto sales

-- Total sales down 24.2% Yoy at 857 units vs 1,130 units


 

TVS Motors trading near day's low


NEWS ALERT | BMW CEO says in talks with JLR to explore further areas of cooperation: Reuters

-- No plans for cross share holdings with JLR

SBI trades over 4% lower; biggest loser among PSU Banks


I am a serious buyer in the mid-cap segment: Equirus Capital's Ajay Garg

The markets have mostly been a one-way street wince the presentation of the Union Budget in July. AJAY GARG, managing director, Equirus Securities tells Puneet Wadhwa and Swati Verma that given the resounding mandate that the Narendra Modi-led government received, he expected the first half of the fiscal year 2019-20 (H1FY20) to be much better than what it is now. The market, he says, has been underestimating the impact of how the corporate results will play out.  READ FULL INTERVIEW HERE
Ajay Garg, Managing Director, Equirus Securities

NEWS ALERT| Monsoon expected to be normal in August, September: IMD forecast

July Auto Sales | TVS Motors

-- Total sales at 2.79 lakh units, down 13.1% YoY

-- 2-wheeler sales at 2.65 lakh units, down 13.7%; domestic sales at 2.08 lakh units

-- Motorcycles sale at 1.08 lakh units

-- Scooter sales at 1.05 lakh units

-- Total export at 69,994 units

Earnings Alert | CEAT Q1 result

-- Net profit at Rs 82.2 cr, up 37% YoY

-- Revenue at Rs 1,752, up 2.9% YoY

-- EBITDA at Rs 167.1 cr, up 7.1% YoY

Market check


Market check | Sensex slips further


Trent surges 8% in a weak market on strong Q1 results

Shares of Trent surged 8 per cent intra-day to Rs 427 on the BSE on Thursday, in an otherwise weak market, after the company reported a strong set of June quarter numbers for FY20 (Q1FY20). The company logged a 51 per cent rise in the standalone net profit at Rs 58 crore in the recently concluded quarter on strong revenue growth. The Tata Group company, engaged in retailing business, had a profit of Rs 38 crore in year ago quarter. READ MORE

Ashok Leyland extends fall post July auto sales numbers


Ashok Leyland July auto sales

-- Total sales down 28% YoY at 10,927 units
 
-- Total M&HV saldes down 39% YoY to 6,722 units

-- Total LCV sales flat at 4,205 units
Photo: Reuters

Global markets check

European shares tracked Wall Street and Asian markets into the red on Thursday after the US Federal Reserve dampened hopes of future cuts in US interest rates. In early European deals, the pan-region Euro Stoxx 50 futures fell 0.5 per cent while futures for Germany’s DAX and London’s FTSE were down 0.3% each and those of France’s CAC 40 eased 0.2 per cent. E-minis for the S&P500 were 0.15 per cent lower.

Asian shares slipped to six-week lows on Thursday while the dollar jumped to two-year highs  MSCI’s broadest index of Asia-Pacific shares outside Japan faltered 0.8 per cent, extending losses for a fifth day to the lowest since mid-June and on track for the biggest one-day percentage drop in a month. Japan’s Nikkei reversed early declines and were a shade higher, while Australian shares declined 0.4 per cent. Losses in Chinese shares accelerated after they opened lower with the blue-chip index down 0.8 per cent. 

July Auto Sales | Eicher Motors

-- Total vehicle sales at 4,048 units, down 32.1% YoY, from 5,964 units

-- Total vehicle exports at 306 units, down 59.6% YoY, from 758 units

-- Total domestic sales at 3,695 units, down 28.4% YoY, from 5,158 units

Nifty PSU Bank index extends losses


Reliance Industries off day's low


HDFC Q1 preview: Analysts see up to 50% rise in PAT, dip in provisions

At a time when the non-banking finance company (NBFC) sector is in a deep distress, HDFC is likely to standout when it reports its June quarter results for 2019-20 (Q1FY20) on Friday, August 2, analysts say. This, they believe, will be possible due to an improvement in assets under management (AUM) and a stable asset quality. On an average, analysts see the housing finance company report up to 50 per cent rise in the net profit (PAT) for the recently concluded quarter. READ MORE

NEWS ALERT | ED begins search operations on Malvinder and Shivinder Singh: CNBC TV18

Shivinder Singh (left) with Malvinder Singh (right)

Bharti Airtel trades lower ahead of Q1 result later in the day


Strong Latin American performance saves the day for UPL during Q1

The international business of India's largest agrichemical player UPL cushioned the decline in domestic growth. Though European business was also soft, the Latin America business growth supported by North America and the rest of the world compensated. The lack of rainfall in June delayed the entire season. The India business contributed 15 per cent to mark an eight percent year-on-year decline in revenues. Europe too remains an important geography. It contributed 21 per cent to revenues. The result led to a 3 per cent fall in the stock price. READ MORE
 

Nifty sectoral indices at this hour


Stocks that hit 52-week low on S&P BSE Sensex

COMPANY PRICE(Rs) 52 WK LOW CHG(RS) CHG(%)
ADVANCE. ENZYME. 151.00 145.00 1.60 1.07
APAR INDS. 491.35 477.00 2.05 0.42
ASAHI INDIA GLAS 193.00 193.00 -4.05 -2.06
BANK OF INDIA 70.25 69.40 -1.95 -2.70
BASF INDIA 1023.95 1010.00 1.15 0.11
» More on 52 Week Low

Earnings Alert| Godrej Consumer Products Q1 results

-- Net profit at Rs 407.6 cr
 
-- Revenue at Rs 2,348.8 cr

-- EBITDA margin at 19.4%

-- Domestic branded volume growth at 5%

Sensex, Nifty see worst July in 17 years. Where are the markets headed?

Tax on foreign portfolio investors proposed in the Union Budget, weak corporate earnings amid a slowing economy and falling consumption dented sentiment in July with the frontline benchmarks – the S&P BSE Sensex and the Nifty 50 – slipping around 6 per cent. This was the worst month for the indices in nearly 17 years. On Thursday, the Nifty50 slipped below the 11,000 mark and has thus far tanked around 9 per cent from its 52-week high of 12,103.05 levels hit on June 3. READ MORE

NEWS ALERT | Sensex breaches 37,000

-- Sensex breached 37,000 for the first time since March 14


NEWS ALERT | Crisil cuts India's GDP FY20 growth estimate to 6.9% from 7.1%: CNBC TV18

-- Target cut on weak monsoon and slowing global growth

MARKET CHECK


Tata Motors trading at day's low


CARE Ratings tanks 19%, hits fresh 52-week low on weak Q1 results

Shares of CARE Ratings tanked 19 per cent to hit a fresh 52-week low of Rs 608 on the BSE on Thursday after the company reported a 46 per cent decline in its consolidated net profit at Rs 13.5 crore in the June quarter (Q1FY20), due to drop in revenue. The rating and grading agency had reported a profit of Rs 25.2 crore in year ago quarter. READ MORE

Reliance Infra climbs over 7%


Market check | Sensex extends fall


NEWS ALERT | Nifty breaches 11,000


Wipro gains 4% after fixing record date for Rs 10,500-crore share buyback

Wipro shares climbed 4 per cent to Rs 276 in early morning trade on the BSE on Thursday in an otherwise weak market after the company said it'll begin its Rs 10,500-crore share buyback programme on August 14 and close on August 28. It received final comments from the market regulator Securities and Exchange Board of India (SEBI) on July 30, with respect to the draft Letter of Offer filed by the Company for the share buyback. READ MORE

Market check


Surcharge hike may stop overseas fund managers from shifting to India

The recent hike in surcharge may dissuade overseas money managers from shifting to India, and result in a flight of senior fund professionals advising global private equity players from here to countries such as Singapore and Hong Kong, which have far lower personal income tax rates. Several offshore fund managers of Indian origin that manage the India part of their global portfolios have been keen to shift to the country as it would enable them to locally connect with bankers, analysts, institutional investors and company management. READ MORE

Maruti Suzuki India slips


July Auto Sales | Maruti Suzuki India

-- Total sales down 33.5% YoY at 1.09 lakh units
 
-- Exports down 9.4% YoY at 9,258 units
 
-- Domestic sales down 35.1% at 1 lakh units

July Auto Sales | Bajaj Auto

-- Tota sales down 5% YoY at 3.81 lakh units
 
-- Exports up 8% at 1.76 lakh units YoY
 
-- Domestic sales dwm 13% at 2.05 lakh units
 
-- Motorcycle sales down 3% at 3.22 lakh units
 

NBCC trades over 3% higher


MARKET CHECK


IT stocks trade mixed amid weakness in rupee, weak global cues

COMPANY LATEST(rs) CHG(rs) CHG(%) VOLUME
WIPRO 275.55 10.20 3.84 199937
INFOSYS 785.60 -8.40 -1.06 38758
QUESS CORP 452.30 14.05 3.21 14451
TECH MAHINDRA 625.00 -11.55 -1.81 14098
TCS 2210.35 4.95 0.22 12310
» More

Nifty Pharma index is trading 0.9 per cent lower


Zee Media gains 5%


Zee Entertainment slips over 3% after Invesco Oppenheimer buys 11% stake

Shares of Zee Entertainment (ZEEL) slipped as much as 3.44 per cent to Rs 347.20 apiece in the early morning deals on Thursday, a day after the parent company Essel Group led by Subhash Chandra, said it had offloaded 11 per cent of the nearly 36 per cent promoter stake in Zee Entertainment Enterprises to existing investor Invesco Oppenheimer for Rs 4,224 crore. READ MORE

Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
RELIANCE POWER 3.58 0.02 0.56 1124023
YES BANK 90.55 -0.75 -0.82 1101210
VODAFONE IDEA 6.83 -0.01 -0.15 1001439
ASHOK LEYLAND 72.05 2.15 3.08 887814
RELIANCE INFRA. 49.55 3.00 6.44 868887
» More on Most Active Volume

NEWS ALERT| Expect big fall in domestic motorcycles sales in July: Rajiv Bajaj, MD, Bajaj Auto to CNBC TV18

-- No signs of greenshoots in demand yet

-- Think July numbers will continue to be weaker

-- Domestic 2-wheelers might continue to decline in Aug

-- 
Rajiv Bajaj, Managing Director, Bajaj Auto

UPL down over 4% on weak Q1 results


Coffee Day Enterprises hits 10% lower circuit after co's board decides to probe Siddhartha's past transactions


Tata Global Beverages climbs over 2% after posting 10% increase in Q1 net profit


Hubtown soars 14%


Bharti Airtel trades with losses ahead of Q1 results


Future Supply Chain hits 52-week low; down over 3%


McLeod Russel hits 5% upper circuit


Nifty Realty index is trading with marginal gain


Godrej Industries dips over 4%


Nifty Metal index slips over 1%; top loser among Nifty sectoral indices


BSE Mid-cap index turns positive, trades 0.12% higher


ICICI Prudential Life Insurance up 1.5%


Escorts Ltd slips after tractor sales dip over 13% in July


Cholamandalam Investment and Fin trades 2% higher


HPCL trades 1% lower


Ajanta Pharma gains nearly 3%


Tata Global Beverages gains over 2%


HDFC Life Insurance gains 1%


IndusInd Bank holds gains, trades flat during early trade


Vedanta slips 2%


Coffee Day Enterprises hits 10% lower circuit


Wipro gains on weaker rupee


Ashok Leyland gains 3% in a weak market


Broader Market Check


UPL trades 1% lower


Eicher Motors hits 52-week low


ZEE slips during first trade


Sectoral trends at NSE during opening trade


Top gainers and losers on S&P BSE Sensex during Opening trade


Market at Open


Market at Open


NEWS ALERT | Banks expect a new investor to come post DHFL's restructuring: sources to BTVi

Banks likely to take majority stake in DHFL on a transitory basis
 
Kapil Wadhawan may lose his promoter status, but continue to stay on the Board for the time being
 
 

RUPEE ALERT| Domestic currency opens lowest since June 27

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


Rupee opening

Rupee opens weaker at 69.20/$ vs Wednesday's close of 68.79 against the US dollar

Market at Pre-open


Market at Pre-open


NEWS ALERT| Dilip Buildcon gets Letter of Acceptance for Karnataka Project: BSE filing

-  EPC project worth Rs 360 cr

Market Outlook | HDFC Securities

Indian markets could open minorly down Thursday following sharply negative US markets on Wednesday and mixed Asian markets this morning. Later they could attempt to rise from lower levels.

Technically, despite the Nifty rising on Wednesday, the trend remains down as long as the Nifty does not close above 11,154 Further downsides  are  likely  once  the immediate support of 11,072 is broken.
 
Stocks and sectors to watch:
 
IT & FMCG indices could provide a temporary bounce. Among stocks under coverage, GSPL, Amara Raja, Marico, MHRIL, TCS could do well.

Stocks to watch: ZEEL, Bharti Airtel, Bosch, Marico, UPL, Eicher Motors

Here's a look at the top stocks that may remain in focus today -
 
ZEE Entertainment: Putting all speculation to rest, the Subhash Chandra-led Essel group on Wednesday said it had offloaded 11 per cent of the nearly 36 per cent promoter stake in Zee Entertainment Enterprises to existing investor Invesco Oppenheimer for Rs 4,224 crore. 
 
Bharti Airtel: Bharti Airtel will announce its June quarter results on Thursday and analysts expect a marginal gain in revenue and average revenue per user (ARPU) on a sequential basis. The ARPU increase is an outcome of subscriber losses and marginal benefit accruing from the mix change, analysts said. READ MORE

Debt profile worsens for V G Siddhartha's unlisted private companies

The privately held firms of deceased Coffee Day Enterprises (CDEL) founder V G Siddhartha show evidence of a worsening debt profile. The amount of debt on the books of the unlisted companies rose in recent times, in line with rising borrowings at the listed CDEL, show the latest financial statements. READ MORE

India only Asian economy that's growing its export share amid trade war

India’s share of world exports rose to 1.71 per cent in the first quarter of 2019 from 1.58 per cent in the fourth quarter of 2017, data compiled by Bloomberg show. The share of every other economy among Asia’s 10 biggest exporting nations fell in the same period.
 
Part of the reason for India’s outperformance is that it’s not as integrated into global manufacturing supply chains as peers, which means exporters are cushioned from rising trade tensions in the region. It’s a sentiment that was flagged by central bank Governor Shaktikanta Das in a recent interview. READ MORE

DSP Mutual Fund takes 50% haircut; CCD group firms ask for 2 weeks

Two of the group companies — Coffee Day Natural Resources (CDNL) and Tanglin Development — apprised the debenture holders of the recent developments and sought time to come back with a plan.
 
A debenture holder has the option to invoke and sell pledged shares if the promoter is unable to restore the security cover in accordance with terms of a debenture issuance. Selling of pledged shares by creditors could add to the selling pressure on Coffee Day Enterprises (CDEL). READ MORE

FMCG stocks seen as safer bet as prospects in other sectors not encouraging

The management commentary from most fast-moving consumer goods (FMCG) majors for the April-June 2019 quarter (first quarter, or Q1) results so far, with respect to demand recovery, has not been very positive.
 
For instance, the management of India’s largest FMCG company — Hindustan Unilever (HUL) — during a Q1 analyst call said, “Looking ahead, we expect near-term demand to remain subdued, given the macroeconomic conditions READ MORE

Value pick by Anand Rathi Shares and Stock Brokers :: HDFC Life Insurance

Recommendation: BUY

CMP: Rs 494

TP: Rs 574

The company has consistently grown over the years with a diverse and innovative product mix and multi distribution channel including agency, direct
and bancassurance. During FY 2019, total premium was ₹291.86 billion, registering a decent growth of 24% y/y, on the back of healthy new business and
increased renewal premium. Profit after tax (PAT) stood at ₹12.8 billion in FY 2019, reflecting a growth of 15% y/y.

Given HDFC Life’s solid product mix, diversified distribution network, track record of consistent strong performance and favourable macro traits, we
believe the company is well positioned for long term growth and initiate our coverage on HDFC Life Insurance Company Ltd. with a BUY rating and a
target price of ₹574 per share.

Narnolia Financial on Tech Mahindra

Recommendation: Accumulate 

CMP: 628
 
Price Target: 706
 
Potential Upside: 12%

TECHM has soft start to the year with revenue declining 1.7% QoQ while margin contracted by 390bps to 11.5%. TCV deal wins remained healthy during the quarter (USD475mn across Enterprise and Communications).

We expect communication to post 7.2%YoY in FY20 on the back of ramp up of deal won in the last few quarters. Also 5G rollout is expected to contribute from
CY20 onwards which will accelerate the revenue growth going ahead.

We have curtailed our revenue /PAT estimates for FY20 and FY21 by3.2%/7.8% and 2.7%/3.6%. Factoring the margin pressure, we reduce our target price from Rs814 to Rs706 and We downgrade the stock to ACCUMULATE.

Motilal Oswal Financial Services on Cholamandalam Investment & Fin

Recommendation: BUY

CMP: Rs 259

TP: Rs 315,

Upside: 21%

CIFC has a diversified portfolio, both geographically and product-wise. It is expanding into new segments like home loans and MSME financing. With strong branch expansion and focus on new products, we expect mid-teens AUM CAGR over the medium term, despite sluggish OEM volumes. However, we look to closely monitor two factors - margin trajectory and asset quality. We upgrade our FY20/FY21 EPS estimates by 2-5% to account for stronger growth. Buy with a TP of INR315 (2.7x FY21 BVPS).

Motilal Oswal Financial Services on UPL

Recommendation: Neutral

CMP: Rs 596

TP: Rs 630

Upside: 6% 

We cut our earnings estimate by 2%/9% for FY20/21 to factor in higher depreciation and interest cost. High debt remains a key concern owing to the Arysta acquisition (significant rise in net D/E from 0.4x in FY18 to 1.8x in FY19). We value the stock at 14x FY21E EPS (~10% discount to its five-year average trading multiple, mainly due to its highly leveraged balance sheet). Our TP of INR630 implies a 6% upside. Maintain Neutral.

Motilal Oswal Financial Services on Eicher Motors

Recommendation: BUY

CMP: Rs 16,350

TP: Rs 19,000

Upside: 16%

Valuation & view: We are lowering our EPS estimates for FY20/FY21 by 6%/9%, as we cut volumes/margins for both businesses. The stock trades at ~22.3x/19x FY20E/FY21E consol. EPS. We have lowered P/E multiple for RE from 22.5x to 20x to factor in the step-down in its growth trajectory. Maintain Buy.

US Fed cuts rate for the first time in more than a decade: Top highlights

The US central bank also left the door open for more rate cuts in the coming months. However, Fed chair Jerome Powell, later in the presser, said that the Wednesday's rate cut has been in the pipeline for a while and doesn't necessarily portend a long cycle of rate cuts.
 
Powell said the rate cut should be viewed as a "mid-cycle adjustment" to monetary policy that will help the economy perform as the Fed wants. The rate cut "will work" to help the economy. READ MORE
US Fed chief Jerome Powell

Four reasons why the US Fed's 25 bps rate cut assumes significance

The rate cut by the US Federal Reserve (US Fed) is significant for four reasons. The first is that it was widely expected and hence was a not a surprise. In a way, it is a victory for President Donald Trump (the $1 trillion tax cut has not quite worked?). The second is that it comes after 10 years, which is a fairly wide hiatus and could be the beginning of another rate cut cycle. The third is that the cut has been invoked at a time when there is no recession or any sign of it, and even though the economy has slowed down from 3.1 per cent in Q1 to 2.1 per cent in Q2, the unemployment rate is healthy (at a 50 year low) and inflation is close to the 2% target. Fourth, for the first time, it appears global concerns of slowdown have also played its role. READ MORE

Top trading ideas by CapitalVia

BUY HCL Technology (Above Rs 1,035)
Target: Rs 1,079.90
Stop loss: Rs 999.70
 
The stock was in a consolidation zone for the last few weeks and now it is showing an potential breakout opportunity if it manages to move above 1,035 levels. The level above 1,035 would result in MACD bullish crossover on the daily charts, further strengthen our view. Moving average setup is bullish on the short- and medium-term charts along with divergence in RSI on daily charts, indicating the odds of the breakout. READ MORE

Nifty outlook and stock pick by Tradebulls Securities

HAVELLS
Reco: BUY
CMP: Rs 645
 
Occurrence of “Bullish Hammer” formation on the daily scale along with a test of 100 WEMA makes it an ideal stock for short covering move targeting its gap resistance placed at 667 and 710 (200 DEMA) levels. With most oscillators in their relative oversold territory with bullish formation on the daily scale indicates the stock might be reverse sharply on the upside. The stock can be bought with a stop placed previous sessions low of 622 for a move targeting its 200 DEMA. READ MORE

Bulk deals on NSE on Wednesday

Date Symbol Security Name Client Name Buy / Sell Quantity Traded Trade Price /
Wght. Avg. 
Price
Remarks
31-Jul-2019 BRIGHT Bright Solar Limited GAYTRIBEN JAYPRAKASH RAJPUT BUY 63,000 10.49 -
31-Jul-2019 BRIGHT Bright Solar Limited GAYTRIBEN JAYPRAKASH RAJPUT SELL 1,08,000 10.51 -
31-Jul-2019 BRIGHT Bright Solar Limited SHAH M SADHANABEN SELL 1,11,000 10.48 -
31-Jul-2019 DELTACORP Delta Corp Limited SMALLER CAP WORLD FUND INC SELL 15,87,759 144.00 -
31-Jul-2019 DHFL Dewan Housing Fin Corp TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED BUY 23,28,763 49.71 -
31-Jul-2019 DHFL Dewan Housing Fin Corp TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED SELL 23,28,763 49.54 -
31-Jul-2019 ELGIEQUIP Elgi Equipments Ltd SBI MUTUAL FUND BUY 11,00,000 248.50 -
31-Jul-2019 ELGIEQUIP Elgi Equipments Ltd SBI MUTUAL FUND SELL 11,00,000 248.50 -
31-Jul-2019 JAKHARIA JAKHARIA FABRIC LIMITED S K GROWTH FUND PVT LTD BUY 36,000 193.95 -
31-Jul-2019 JAKHARIA JAKHARIA FABRIC LIMITED SHAH MUKESHKUMAR BABULAL HUF SELL 21,600 193.95 -

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


Oil check

At 8:13 AM, Brent Crude futures were trading 1 per cent lower at $64.34/barrel

Rupee check

The rupee recovered from early lows to settle higher by 6 paise at 68.79 against the US dollar on Wednesday.
 

SGX Nifty

At 8:11, the SGX Nifty is trading 0.33 per cent lower at 11,084.50, indicating a negative start for domestic indices

Asian Markets check


US Market check


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