Stock market updates: Extending their winning run, benchmark indices settled at fresh closing peaks on Thursday, amid buying in FMCG and IT stocks, and supported by firm global trends.
The BSE barometer of 30-shares ended at 54,493 levels, up 123 per cent or 0.23 per cent, while the NSE's Nifty50 index closed at 16,295-mark, up 36 points or 0.22 per cent. Earlier today, the Sensex and the Nifty claimed new lifetime high of 54,717 and 16,349, respectively.
The broader markets, meanwhile, ended mixed. The BSE MidCap added 0.10 per cent but the BSE SmallCap index slipped 0.43 per cent.
TECH VIEW :: Rohit Singre, Senior Technical Analyst at LKP Securities
Index managed to close a day on a positive note at 16295 with minimal gains and formed dragon fly Doji candle pattern on the daily chart which represents indecision in the markets. Going forward 16300 will be very quick resistance if managed to sustain above 16300 zone we may see the index to march towards 16400 zone quickly but if fails to manage then some profit booking may be seen towards 16200-16100 zone which are immediate supports on downside & overall support is placed at 16k mark nay dip near 16k mark will be good buying opportunity.
Be cautious on mid & smallcaps: Vinod Nair, Head of Research at Geojit Financial Services
Despite witnessing consolidation in the opening session, large caps managed to continue trading at record high levels with the support from IT, Metal and FMCG stocks. Banking stocks continued to be under pressure ahead of the RBI’s policy announcement. Importantly, the broad market has started to underperform. Investors should be cautious in the short-term regarding the performance of mid & small caps after the thrilling rally during the year.
MARKET CLOSING COMMENT :: Deepak Jasani, Head of Retail Research, HDFC Securities
Indian benchmark indices closed mildly higher on Aug 05 for the third consecutive day amidst mixed global cues and profit taking in broader markets. Nifty opened mildly higher, fell in the first 20 minutes of trade, recovered ground and went into positive territory and later gave up some ground to close almost at the opening levels. At close the Nifty was up 0.22% or 35.8 points to close at 16294.6.
Volumes were in line with recent averages as focus shifted to telecom and metal stocks, the two main gainers while Realty and Bank indices fell the most.
Asian shares mostly held onto this week's gains on Thursday, despite hawkish remarks from a senior official at the U.S. Federal Reserve. European stocks were flat to slightly higher on Thursday as investors digested a slew of mixed earnings updates and awaited a key monetary policy update from the Bank of England for direction.
Nifty made a classic doji after a rise on Aug 05, suggesting indecision at higher levels. Either one or two up gaps made in the course of journey from 15885 may come in for filling over the next few sessions. Advance decline ratio was very bad in the morning session, but improved a bit towards the end to look better than the previous day, though very much in the negative. 16176-16349 could be the trading band for the Nifty in the next 1-2 sessions.
Airtel surges 4%, hits 6-month high in intra-day
Result Reaction :: Hikal hits new high, ends 12% higher
>> Q1FY22 PAT at Rs 50.5 crore versus Rs 15 crore
>> Q1FY22 Revenue at Rs 454.50 crore versus Rs 347 crore
Earnings Impact GAIL India ends flat even as profit soars over 200%
- Cons revenue at Rs 17,588 cr vs Rs 12,183 cr YoY
- Cons PAT at Rs 2,157 cr vs Rs 643 cr YoY
- Cons ÈBITDA at Rs 2,638.6 cr vs Rs 446 cr YoY
- Cons margin at 15% vs 3.6% YoY
Vodafone recoups all losses, ends in the green
Advance-decline ratio in favour of sellers
India VIX eases over 2%
>> India VIX or the volatility indicator declined 2.57 per cent to 12.87
BSE Smallcap index underperforms Sensex, down over 0.43%
Sector Watch :: Barring Metals, IT & FMCG all sectoral indices on NSE end in red
Sensex Heatmap | Top gainers & losers at close
>> Top gainers - Airtel, ITC, Tech Mahindra
>> Top losers: SBI, IndusInd Bank, ICICI Bank
CLOSING BELL :: Benchmark indices off day's high but log fresh record close
The BSE barometer Sensex and NSE Nifty after scaling new highs in intra-day session witnessed profit taking in the last hour of trade and ended off day's high. Sensex closed the day at 54,493, up 123 points or 0.23 per cent. Nifty50, meanwhile, settled at record close of 16,294.60, up 36 points or 0.22 per cent. Sensex had touched an all-time high of 54,717.24 in trade today and Nifty at 16,349.45.
Low provisions, stable NII: Here's what may drive Bank of Baroda's Q1 PAT
Healthy operating profit, steady interest income, and some recoveries from stressed accounts, along with fewer provisions, may help Bank of Baroda report profit in the June quarter of FY22 (Q1FY22). However, the bottom line growth may be capped by higher slippages, say analysts.
The state-owned lender, which had reported net loss of Rs 864 crore in Q1FY21 and Rs 1,046.5 crore in Q4FY21, is expected to report up to Rs 1,633.3 crore-net profit on Saturday, August 7, for the quarter under review. READ MORE
June Quarter Results :: Adani Transmission
>> PAT: Rs 435.4 crore
>> Revenue: Rs 2,829.7 crore
>> Ebitda: Rs 1,406 crore
>> Ebitda margin: 49.69%
RBI monetary policy :: What is the Street factoring-in?
>> The inflation outlook for FY22 could also see a revision from the predicted levels of 5.1 per cent.
>> RBI is likely to watch the developing macroeconomic situation for some more time before taking any decisive action on monetary policy.
>> The fear of the third wave would also force the RBI to continue with the growth supporting measures.
>> Inflation rates, liquidity concerns, and Governor Shakitkanta Das’ commentary will be in more focus during this.
Global markets :: Earnings lift European stocks to all-time highs ahead of BoE decision
European stocks hit record highs on Thursday, as strong earnings from Novo Nordisk and Siemens helped outweigh weakness in miners and banking shares, with investors eyeing a policy decision from the Bank of England later in the day.
The pan-European STOXX 600 inched up 0.3%, extending gains that took the index to all-time highs this week.
European stocks are on course for their strongest weekly performance in three months, as upbeat quarterly earnings and loose monetary policy supported markets despite a surge in COVID-19 cases and concerns about inflationary pressures.
Stock of this textile company has zoomed 127% in a month
Sportking India manufactures cotton, cotton polyester blended and acrylic-blended yarn in grey and dyed forms with an installed capacity of 272,880 spindles. The garments are retailed by Sportking Group companies under the Sportking and Mentor brands, through both exclusive and multi-brand stores. READ MORE
Broader market :: BSE SmallCap index underperforms, down 0.6%
July Auto Sales :: Tata Motors in focus
>> JLR UK sales down 46.6% at 4,528 units Vs 8,476 units (YoY)
>> Jaguar UK sales down 53.1% at 1,288 units Vs 2,746 Units (YoY)
>> Land Rover UK sales down 43.4% at 3,240 units Vs 5,730 units (YoY)
June quarter results :: HIKAL
>> PAT: Rs 50.5 crore
>> Revenue: Rs 454 crore
Exxaro Tiles IPO subscribed over 7 times on Day 2
IPO Alert :: Devyani International's Rs 1,800-cr issue subscribed over 4x so far
Analysts revise SBI target price post Q1, but Voda Idea overhang remains
Concerns over Vodafone Idea's existence and worries that the telecom services provider may go belly up in the absence of any support from the government hit shares of State Bank of India (SBI) on Thursday. The stock skidded 3 per cent to Rs 443 on the BSE in the intra-day trade. Analysts worry that Voda Idea's precarious position may hit the lender's asset quality going ahead. READ MORE
Unilever is said to kick off sale of large part of $5.6-bn tea business
The UK-listed consumer group has reached out to potential suitors and is expecting first-round bids in September, the people said, asking not to be identified discussing confidential information.
Deliberations are ongoing and there’s no certainty it’ll decide to proceed with a sale, the people said. Unilever is also considering an initial public offering of the tea business, or a partnership, the company said in a first-half results statement in July. READ MORE
Mos Aviation says AAI sees air traffic at pre-Covid levels by FY25
>> Indian carriers lost Rs 19,000 crore in FY21
>> Indian airports lost Rs 3,400 crore in FY21
(Source: TV Reports, Agencies)
ALERT :: Nifty surpasses 16,300 for the first time
Bharti Airtel surges 7%, hits over six-month high
Bharti Airtel is India’s second-largest telecom operator, with a revenue market share of 35 per cent as of Q4FY21. The company has 321 million wireless customers in India and 121 million subscribers across operations in 14 African countries. It enjoys industry-leading ARPU (average revenue per user) and margins in the wireless business. READ MORE
Beyond rates: Five things to watch out for in RBI's monetary policy
The RBI has continued with an ultra-loose monetary policy that keeps interest rates lower than average inflation while maintaining a huge amount of surplus liquidity. The market wants to know whether the RBI will indicate on Friday when it will start returning to normalcy.
What is normal is viewed differently but among other things, it is the gradual withdrawal of liquidity, inching up of overnight rates and narrowing the policy rate corridor. READ MORE
SBI Life hits new high after Carlyle affiliate offloads entire 1.9% stake
Shares of SBI Life Insurance Company hit a record high of Rs 1,174, up 3 per cent on the BSE in intra-day trade on Thursday after US private equity fund CA Emerald Investments, an affiliate of Carlyle Asia Partners, offloaded its entire 1.9 per cent stake in the company via multiple block deals. The stock of the life insurer surpassed its previous high of Rs 1,147.95 touched on July 29, 2021. READ MORE
View on telecom sector :: Powerful duopoly in telecom sector not desirable
The Vi story is unfolding with potentially far-reaching consequences for Indian business. It is a fact that the government and the regulatory body didn't act in time to rescue the company. The Supreme Court verdict on AGR dues made the situation precarious for the company which is now heading for default on loans. If this happens it will impact a few banks too since the debt to banks stands above Rs 23000 crore.
A powerful duopoly in telecom is not desirable. Therefore, the govt should explore all options to make the hugely crucial telecom sector a three-player industry. Kumaramangalam Birla's offer to give up his stake to give a potential lease of life to Vi and its customers should be welcomed and all options explored. The stakes are huge.
In an industry dominated by large players who can destroy competition, it is also important to have a floor price above cost for services. An important learning from this sad episode is that governments' short-sighted policies to maximise revenues can wreck havoc on a crucial industry.
-- Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Bharti Airtel headed for a multi-year breakout; stock can double from here
After recording an all-time high of Rs 543.55 in 2007, Bharti Airtel shares have traded in a broad range of Rs 520 to Rs 200 from mid-2009 till February 2020. Thereafter, the year 2020 saw the counter break past this consolidation range. However, the price action could not lift the volumes in the favour of the bulls. The selling pressure continued to dominate the stock price above Rs 600 mark. At the current juncture, it will be Airtel's third attempt to conquer the selling pressure in the range of Rs 630 to Rs 600 levels. READ MORE
CLSA expects this Jhunjhuwala-backed gaming company stock to crash 41%
A lot of investors on Dalal Street try and fine-tune their portfolio in tandem with marquee investor Rakesh Jhunjhunwala's investing strategies. Jhunjhunwala, often referred to as India's Warren Buffett, is said to have a knack for picking multibaggers. But his investment in Nazara Technologies has been mostly a no-show in terms of returns ever since its stellar debut on bourses. READ MORE
Nava Bharat Ventures tanks 15% on weak June quarter results
Shares of Nava Bharat Ventures tanked 15 per cent to Rs 107.20 on the BSE in the intra-day trade after the company reported a sharp 60 per cent year on year (YoY) drop in consolidated profit after tax (PAT) of Rs 38.45 crore for the quarter ended June 2021 (Q1FY22). It had posted a profit of Rs 95.43 crore in a year ago quarter. READ MORE
COMMODITY VIEW :: GOLD
For intraday, MCX Gold October future is expected to decline during the session since the dollar has rebounded after Fed Vice-Chair's hawkish statements on rate hike. The bullish comments on the US economy, by Fed Vice Chair Richard Clarida, triggered a rebound in US Treasury yields and turned market attention away from the release of an unexpectedly weak private employment report that had driven the dollar down initially. But, a measure of U.S. services industry activity jumped to a record high in July, boosted by the shift in spending to services and dollar recovered fully. Now, focus is now on U.S. non-farm payroll report, due on Friday. MCX Gold October Future may fall to Rs. 47,750 per 10 gram and MCX Silver September is expected to decline to Rs. 67,200 per kg.
Sonata Software rallies 9%, hits new high post June quarter results
The company’s consolidated revenues grew 33 per cent YoY and 18 per cent quarter-on-quarter (QoQ) to Rs 1,268 crore. Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin improved 165 basis points (bps) YoY but was down 116 bps QoQ at 10.17 per cent during the quarter under review.
The management said it sees the demand situation as being extremely satisfactory with growth in existing accounts and new deal pipeline. “Our acquisition of Encore is promising as it gives us access to fast the growing health care provider segment and expanding our cloud footprint apart from a new delivery location in Chennai,” the management said. READ MORE
Rupee opens at per 74.15 per US dollar vs Wednesday's close of 74.19/$
KM Birla steps down as Vodafone Idea chairman; stock slides 38% in 3 days
Shares of Vodafone Idea (Vi) tanked 15 per cent at Rs 5.13, hitting a fresh 52-week low on the BSE in the intra-day trade on Thursday, after telecom major announced that Kumar Mangalam Birla will step down as non-executive director and non-executive chairman at a time when Vi is struggling to stay afloat. The changes to the board will come into effect from close of business hours on August 4, 2021. Himanshu Kapania, a nominee of the Aditya Birla Group, has been appointed as the non-executive chairman. READ MORE
Street View :: Markets may consolidate for a while before making fresh moves
A major factor favoring the rally is the improving macros as reflected by buoyant tax collections, falling fiscal deficit, low CAD, ample forex reserves, expanding PMI, booming exports, and softening crude. Business micros will improve under such a benign macro environment assisted by lower tax and low-interest costs. Markets might be factoring in this emerging promising scenario. The return of FIIs with buying of Rs 4946 cr in cash market during the last two days is bad news for the bears. An important feature of yesterday's market action is that while Nifty gained 128 points thanks to the rally in leading financials, the broader market underperformed. Markets may consolidate for a while before making fresh moves in response to emerging triggers.
-- Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Time Technoplast jumps 6% on order for 30,000 cylinders
SBI Life in the red post bulk deal on the counter
>> US private equity fund CA Emerald Investments, an affiliate of Carlyle Asia Partners, was set to offload its entire 1.9 per cent stake in SBI Life Insurance Company.
Result Reaction :: HPCL slips 2%
>> Hindustan Petroleum Corporation reported a 36 per cent YoY drop in its June quarter net profit after one of its two oil refineries took a maintenance shutdown, reducing crude oil processing. Net profit in April-June fell to Rs 1,795 crore from Rs 2,183.83 crore in the same period a year back and Rs 3,017.96 crore in the preceding quarter.
Earnings Impact :: Titan falls 1%
>> The jewellery maker reported a net profit of Rs 61 crore for the quarter ended June as against a net loss of Rs 270 crore in the year-ago quarter. Its sales in Q1 jumped 74.5 per cent YoY to Rs 3,249 crore aided by a low base in the year-ago quarter.
Banks having exposure to Voda Idea fall up to 6%
IDFC First Bank
Voda Idea plummets 15% as Kumar Mangalam Birla steps down at chairman
>> Stock hits fresh 52-week low
>> Kumar Mangalam Birla has stepped down as non-executive chairman of Vodafone Idea (Vi) after offering to give up his stake in the debt-ridden telecommunications (telecom) company. Himanshu Kapania, a telecom industry veteran and a nominee of Aditya Birla Group on the board, will take over the chairman’s post.
>> In another development, Vodafone Plc, which owns 45 per cent stake in Vodafone Idea (Vi), is ready to offer its stake for free to Indian banks/financial institutions or to the government-owned Bharat Sanchar Nigam (BSNL), provided they take over the wireless telephony company, banking sources told Business Standard.
Sector Watch :: Defensive stocks gain as indices at record highs
Broader markets lag benchmarks
Sensex Heatmap :: Top gainers & losers at opening tick
FIRST TRADE :: Nifty above 16,250
OPENING BELL :: Sensex adds 45 points
NEWS ALERT :: 1.9 crore SBI Life shares changed hands in a pre-market bunched trade
(Source: TV Reports)
Sensex Heatmap | Top gainers & losers in pre-open trade
Pre-open Session :: Nifty nears 16,300
Pre-open Session :: Sensex gains over 150 points
NEWS ALERT :: JSPL’s Sales increased to 6.7 lakh tonnes, up 5% YoY
>> Steel sales were up 5% Y-o-Y and surged 21% M-o-M to 6.7 lakh tonnes as compared to 6.4 lakh tonnes during the same month in the previous year.
>> JSPL reports monthly steel production of 6.5 lakh tonnes, up 8% Y-o-Y as compared to 6.03 lakh tonnes during the same month in the previous year.
>> Exports accounted for more than 40% of the total sales volumes due to high spot demand from international markets.
BS BREAKING :: Voda Plc offers Vodafone Idea stake to lenders and BSNL for free
Vodafone Plc, which owns 45 per cent stake in Vodafone Idea (Vi), is ready to offer its stake for free to Indian banks/financial institutions or to the government-owned Bharat Sanchar Nigam (BSNL), provided they take over the wireless telephony company, said banking sources.
Lenders said if BSNL takes over the company, government dues to be paid by the merged BSNL-Vi entity will be a book entry. READ MORE
Top factors that could guide markets today
Apart from global cues, the June quarter earnings season, FII flows and the RBI policy decision slated for Friday could also sway market sentiments.
Primary market activity is also likely to remain heightened as all the issues will open for subscription on Day 2. Exxaro Tiles IPO was subscribed 4.63 times on Day 1, Windlas Biotech 3.15 times, Devyani International 2.69 times and Krsnaa Diagnostics 1.16 times. LISTEN TO THE PODCAST HERE
Top stocks to watch today
Results Today: Over 100 companies, including Adani Power, NCC, GAIL, Tata Chemicals, Cipla, Quess Corp, Indiabulls Housing Finance and Gujarat Gas are slated to post their results.
Vodafone Idea: Kumar Mangalam Birla has stepped down as non-executive chairman of Vodafone Idea (Vi) after offering to give up his stake in the debt-ridden telecommunications (telecom) company. Himanshu Kapania, a telecom industry veteran and a nominee of Aditya Birla Group on the board, will take over the chairman’s post. READ MORE
In the commodities market, international benchmark Brent crude futures were flat at $70.38 per barrel. US crude futures advanced slightly to $68.18 per barrel.
SGX Nifty alert
>> At 8:25 AM, the index was up 7 points at 16,257 levels
Wall Street on Wednesday
US equities fell from record after the vice-chair of the Federal Reserve suggested rates could rise by 2023 and mixed economic data for July showed US companies adding far fewer jobs than expected. Overall, S&P 500 lost 0.46 per cent, Dow Jones shed 0.92 per cent and Nasdaq eked 0.13 per cent gain.
Asian markets check
Japan's Nikkei 225 gained 0.15 per cent in Asia's early trade while South Korea's Kospi edged around 0.1 per cent higher. MSCI's broadest index of Asia-Pacific shares outside Japan traded around the flatline.
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