MARKET WRAP: Sensex snaps 6-day losing streak, up 52 pts; autos lead rally

Topics Markets | MARKET WRAP

Domestic indices ended Friday's lackluster trade with marginal gains. The benchmark S&P BSE Sensex and broader Nifty50 traded range-bound for better part of the day tracking corporate earnings and weakness in global markets.

The Sensex ended 52 points, or 0.14 per cent, higher at 37,883 levels pulled up by automobile manufacturers, banking and financial stocks. YES Bank, Bajaj Finance, Hero Moto Corp, and M&M ended the day as top gainers while Vedanta, HDFC, Bharti Airtel, and Reliance were the top laggards at the close. On the other hand, Nifty50 settled at 11,284 mark, up 32 points, or 0.29 levels.

In the broader market, S&P BSE MidCap ended 73 points, or 0.53 per cent, higher at 13,856 levels while the S&P BSE SmallCap closed 29 points, or 0.22 per cent, higher at 13,060 levels.

Sectorally, all the indices ended in the green barring Nifty IT index. Nifty Auto index was the top performing index, closing with gains of over 2 per cent. Nifty Bank, including private bank and public sector bank indices, and Nifty Pharma ended with gains of a per cent each. Nifty IT index closed with a cut of 0.82 per cent.

GLOBAL CUES

Asian share prices dropped on Friday following mixed US earnings reports and after the European Central Bank disappointed those investors who had expected an immediate easing.

Japan's Nikkei index closed 0.45 per cent lower while South Korea's Kospi slipped 0.40 per cent at close. China's Shanghai Composite, however, ended 0.24 per cent higher. 

(With inputs from Reuters)

 


3:50 PM IST

3:50 PM IST

3:36 PM IST The S&P BSE Sensex gained 52 points or 0.14 per cent to settle at 37,883 while the NSE's Nifty50 index ended at 11,284 levels, up 32 points or 0.29 per cent.

3:29 PM IST Shares of IDFC First Bank gained 10 per cent to Rs 43 apiece on Friday, gaining 14 per cent in the past two trading days on the BSE, despite a net loss of Rs 617 crore in June quarter (Q1FY20). The loss was due to higher provisioning for stressed assets, financial data of the bank showed. The private lender had posted a net profit of Rs 181 crore in the year-ago quarter. READ MORE

3:09 PM IST -- Net Profit at Rs 26.1 crore, down 36.2% YoY -- Revenue at Rs 802.4 crore, down 9.7% YoY -- EBITDA at Rs 70.10 crore down 11.3% YoY --EBITDA Margin at 8.74%

3:05 PM IST -- Cons net profit down 8.6% at Rs 185 cr Vs Rs 202.5 cr (YoY) -- Cons revenue up 5% at Rs 2,182 cr Vs Rs 2,079 cr (YoY)  

2:40 PM IST Maruti Suzuki reported standalone net profit of Rs 1,435 crore for June quarter, down 27.3 per cent from the year-ago's Rs 1,975.3 crore profit. Revenue from operation came in at Rs 18,735.2 crore, down 14.1 per cent on a YoY basis. The company posted Ebitda of Rs 2048 crore, down 38.5 per cent from Q1FY19's Rs 3,330 crore. Margin were down 440 bps at 10.4 per cent as compared to 14.8 per cent YoY. READ MORE

2:36 PM IST

2:32 PM IST

2:23 PM IST -- BHushan Steel is at advanced stage of resolution -- Not looking at distress sale of non-core assets

2:21 PM IST -- FY19-20 will be year of profitability of the bank, he said

LIVE UPDATES

Sectoral gainers and losers on the NSE


Gainers and losers on the S&P BSE Sensex


CLOSING BELL

The S&P BSE Sensex gained 52 points or 0.14 per cent to settle at 37,883 while the NSE's Nifty50 index ended at 11,284 levels, up 32 points or 0.29 per cent.

IDFC First Bank gains 14% in two days post June quarter results

Shares of IDFC First Bank gained 10 per cent to Rs 43 apiece on Friday, gaining 14 per cent in the past two trading days on the BSE, despite a net loss of Rs 617 crore in June quarter (Q1FY20). The loss was due to higher provisioning for stressed assets, financial data of the bank showed. The private lender had posted a net profit of Rs 181 crore in the year-ago quarter. READ MORE

Earnings Alert | Force Motors Q1 result

-- Net Profit at Rs 26.1 crore, down 36.2% YoY

-- Revenue at Rs 802.4 crore, down 9.7% YoY

-- EBITDA at Rs 70.10 crore down 11.3% YoY

--EBITDA Margin at 8.74%

Earnings Alert | Jubilant Life Sciences Q1 result

-- Cons net profit down 8.6% at Rs 185 cr Vs Rs 202.5 cr (YoY)

-- Cons revenue up 5% at Rs 2,182 cr Vs Rs 2,079 cr (YoY)
 

Maruti Suzuki Q1 profit declines 27.3% to Rs 1,435 crore, revenue slips 14%

Maruti Suzuki reported standalone net profit of Rs 1,435 crore for June quarter, down 27.3 per cent from the year-ago's Rs 1,975.3 crore profit. Revenue from operation came in at Rs 18,735.2 crore, down 14.1 per cent on a YoY basis. The company posted Ebitda of Rs 2048 crore, down 38.5 per cent from Q1FY19's Rs 3,330 crore. Margin were down 440 bps at 10.4 per cent as compared to 14.8 per cent YoY. READ MORE


S&P BSE Auto index rises nearly 2%; Eicher Motors up over 5%


MARKET CHECK | Midcaps outperform benchmarks


NEWS ALERT | Bank consolidation to depend on opportunities available: Sunil Mehta

-- BHushan Steel is at advanced stage of resolution

-- Not looking at distress sale of non-core assets

NEWS ALERT | Expect to bring down gross NPA level below 12% by the end of the year: Sunil Mehta, chairman, PNB

-- FY19-20 will be year of profitability of the bank, he said

NEWS ALERT | GST Council likely to take up rate cut on Electric Vehicle chargers from 18% To 12%: BTVI quoting sources

-- This item is part of additional items to be taken up in Council meet on July 27

Alert: Rate cut on EVs from 12% to 5% already on agenda

Buzzing | Bajaj Electricals slips over 6%


NEWS ALERT | PNB reports fresh slippages of Rs 4,711 cr Vs Rs 6,710 cr (QoQ)

-- recovery at Rs 3,800 cr

Indian Oil Corp trades lower


Result impact | Maruti Suzuki off highs


Earnings Alert | Maruti Suzuki Q1 result

-- Net profit at Rs 1,435.5 crore

-- Revenue at Rs 19,720 crore

-- EBITDA Margin at 10.4%

-- EBITDA at Rs 2,048 crore

Jubilant Foodworks trades nearly 3% higher


RESULT IMPACT: PNB slips from day's high


Earnings Alert | PNB Q1 result

-- Net Profit at Rs 1,018.6 crore

-- Provisions at Rs 2,023 crore vs Rs 10,071 cr; vs Rs 5578 cr YoY

-- NII at Rs 4,141.4 crore

-- Net NPA at 7.17%

-- Gross NPA at 16.49%

-- Loan growth down 8% QoQ and up 1.55% YoY

NEWS ALERT | US FDA issues four observations to Indoco Remedies' Goal Plant II & III

-- FDA issues establishment inspection report

-- Inspection held between May 27- June 4
 

Varun Beverages surges 11% in 2 days after stock turn ex-date for 1:2 bonus

Shares of Varun Beverages (VBL) hit an all-time high of Rs 667 apiece, up 8 per cent intra-day, on the BSE on Friday. The stock has surged 11 per cent in the past two trading days on the exchange after it turned ex-date for bonus issue in the ratio of 1:2 on Thursday. In comparison, the S&P BSE Sensex was up 0.20 per cent in past two days.
 
The stock of the beverages manufacturer surpassed its previous high of Rs 650 (adjusted to bonus) hit on July 9, in the intra-day trade. READ MORE

Market check


Piramal Enterprises trades 4% higher


NEWS ALERT | YES Bank acquires 18.55% stake in Cox & Kings: CNBC TV18

-- Also, 30% stake in Ezeego One Travel & Tours Ltd on pledge invocation

Earnings Alert | Bajaj Auto Q1 result

-- Net profit at Rs 1,125.7 crore

-- Revenue at Rs 7,756 crore

-- EBITDA at Rs 1,198.2 crore

-- EBITDA Margin at 15.45%

Punjab National Bank trades 5% higher ahead of Q1 Results; top gainer on Nifty PSU Bank index


Monsoon Tracker | Kotak Securities

FY2020 Monsoon: remains disappointing
 
Till July 24, cumulative rainfall was 19% below normal with the weekly rainfall 34.7% below normal (slide 3). On a regional cumulative basis, spatial distribution has been deficient across India (slide 4). Out of the 36 sub-divisions across India, till date, 21 have received deficient rainfall and 15 have received normal rainfall (slide 5).
 
Retail food price momentum: increased over last week
 
Average weekly price levels indicate that food prices have been mostly on the upside over last week. Vegetable prices increased 16.5% over last week while the prices of pulses increased 1.8%. Cereal prices fell 0.9% while the price of oils and fats increased 0.3% over last week in the week ending July 21 (slide 6). We note that this is based on the Department of Consumer Affairs’ daily/weekly data and should not be assumed as the official retail inflation data.

Earnings Alert | Airtel Africa Q1 results

-- Net profit $132.2 mn vs $83 mn QoQ
 
-- Revenue at $795.9 mn vs $781 mn QoQ
 
-- EBITDA at $347.6 mn vs $344 mn QoQ
 
-- EBITDA margin at 43.7% vs 44% QoQ

NEWS ALERT | Indiabulls Hsg Fin's board to consider raising fund via bond issue on August 6: BSE Filing


MARKET CHECK


Anand Rathi Shares and Stock Brokers on Kewal Kiran Clothing

Rating: BUY
 
Target Price: Rs 1,587
 
Share Price: Rs 1,022

Driven by healthy, ~7%, volume growth, Kewal Kiran’s Q1 FY20 revenue growth came at 4%. The volume-led growth is in line with management strategy. We estimate a 7% revenue CAGR over FY19-21, driven by 10-11% volume growth even with a 4% drop in realisations. We maintain our Buy rating, with a lower TP of Rs 1,587, at 15x FY21e EV/EBITDA.

Chris Wood rejigs Indian stock exposure; SBI Life replaces Arvind Fashions

The slowdown in the Indian economy and its impact on consumption-related sectors has made global investors, too, sit up and take notice. In his recent weekly note to investors GREED & fear, Christopher Wood, global head of equity strategy at Jefferies cautions that the ‘consumer financing boom’ in India has peaked. On the other hand, the boom in insurance stocks thus far in calendar year 2019 (CY19) has made him alter allocation to Indian stocks, with the addition of SBI Life in his Asia ex-Japan long-only portfolio. READ MORE
Chris Wood

NEWS ALERT | Supreme Court refuses to stay Bombay High Court order in Mumbai Coastal Road case: CNBC TV18

-- SC to next hear the case on Aug 20

Alert: Bombay HC had earlier quashed CRZ permission & said that environmental nod was mandatory. The Court further added that no further work can be done by BMC on this coastal road project

SAIL climbs over 4%; top gainer in S&P BSE MidCap index


Westlife Development dips 6% to hit 52-week low on disappointing Q1 results

Shares of Westlife Development slipped 6 per cent intra-day to trade at Rs 272 apiece, also its 52-week low, on the BSE on Friday after the company’s consolidated net profit more-than-halved in Q1FY20 to Rs 5.77 crore from Rs 11.6 crore in the same period in the previous fiscal. The company's total revenue during the quarter grew 12 per cent at Rs 382 crore on year-on-year basis while Earnings before interest, tax, depreciation and amortization (ebitda) margins contracted 180 bps at 8.57 per cent from 10.37 per cent. READ MORE
Photo: Shutterstock

NEWS ALERT | Astral Poly to consider bonus issue on August 2

-- Board of Director of Astral Poly Technik will also meet to approve unauditied financial result of Q1FY20.


Indiabulls Housing Finance gains 3% in trade


Bajaj Finance trades near day's high


India's plan to sell $10-bn yen debt has one more hurdle: It's too much

Advocates of India’s first global bond offering are set to face another obstacle: there may not be enough appetite for $10 billion of yen-denominated debt.
 
The nation’s planned sale has been marked by controversy even before it gets off the ground, as reports surface of opposition from the prime minister’s office and the departure of an official handling the issuance. The government is said to be considering raising $10 billion at one go as early as October, with the yen and euro marked as preferred currencies. READ MORE

Market check | Sensex back in the green, trades flat


Gold demand rose 14% in Apr-Jun, outlook for next to quarters weak: GFMS

India’s gold demand in the April-June 2019 quarter saw an increase of 14 per cent on a year-on-year basis, but it might remain muted in the next two quarters. Among the reasons for a weak outlook are high domestic prices. The rates, already high in international markets, will increase further in India on account of the 2.5 per cent import duty increase announced in Union Budget 2019 earlier this month. READ MORE

Outlook on Bajaj Finance by ICICI Securities

Asset quality may see further deterioration. Hence, we increase our provisions estimate for FY20-21E and reduce our PAT estimates lower for FY20-21E by 5-7 per cent. We maintain our P/ABV multiple at 5.2x and P/E multiple to 26x. We maintain REDUCE with a target price of Rs 2,900 (earlier Rs 3,300). Continuity of high margins in the current environment along with market share in high yielding-low risk consumer segment remain risks to our call.

Bajaj Finance off day's lows, gains over 4%


NEWS ALERT | GST Council meeting to take place on Saturday

-- The meeting, which was scheduled for yesterday, was push ahead due to the on-going Parliament session

NBCC, PNB, HEG: One-third of Nifty500 stocks trade in oversold territory

The markets have seen a steady fall since the presentation of the Union Budget on July 5, with the S&P BSE Sensex and Nifty50 slipping over 5 per cent each. The bearish sentiment has seen significant support levels getting broken. Neither the advance/decline nor stock price are showing any signs of recovery. READ MORE

Tata Motors hits over 7-year low on weak Q1 results; recovers later

Tata Motors shares hit an over seven-year low of Rs 138 per share, slipping 4 per cent on the BSE in Friday's early morning deal, after the company’s consolidated net loss nearly doubled at Rs 3,680 crore in the June quarter of 2019-20 (Q1FY20) on Jaguar Land Rover (JLR) woes and a slowdown in the automobile industry in India. The commercial vehicle major had posted a loss of Rs 1,863 crore in year-ago quarter. READ MORE

PNB Q1 results preview: Here's what leading brokerages expect

Punjab National Bank (PNB) is scheduled to report its April-June quarter numbers for the fiscal year 2019-20 (Q1FY20) today amid expectations of a subdued performance. Most analysts expect the bank to report loss in the recently-concluded quarter coupled with a fall in the net interest income (NII). Asset quality, however, is likely to see an improvement, they say. READ FULL PREVIEW HERE

Nifty Auto index gains


YES Bank gains on reports of talk with TPG, Advent International over capital infusion


NEWS ALERT | AMCs met lenders for DHFL resolution: CNBC TV18

-- AMCs exploring legal route

-- AMCS may not be able to wind up DHFL under Companies Act

M&M trades over 2% higher

-- Snaps 10-day losing streak; bounces from 3.5 year low

MARKET CHECK


NIIT Tech dips over 5%


Buzzing | Suzlon Energy gains over 10%


PVR Ltd down over 5% after Q1 profit plunges 69%


Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
DEWAN HSG. FIN. 54.55 -0.60 -1.09 1257753
TATA MOTORS 145.40 1.05 0.73 1019295
YES BANK 88.45 0.80 0.91 936782
VODAFONE IDEA 9.85 0.13 1.34 746621
BANK OF BARODA 113.15 3.60 3.29 644238
» More on Most Active Volume

Mahindra & Mahindra up 2%, top gainer on S&P BSE Sensex


Bajaj Finserv gains on 40% YoY growth in June quarter income


Biocon rises 2% after posting 72% profit growth in June quarter


Vedanta dips 2% as biggest shareholder Anil Agarwal seels Anglo-American stake


Nifty PSU Bank index is trading 1.4% higher


Ahead of results: PNB rises 1.5%


Bajaj Auto cracks 0.8% ahead of June quarter results


Maruti Suzuki trades lower ahead of Q1 results


Bank of Baroda gains 3% after profit rises 34% in Q1


Tata Motors trades lower as losses double in Q1


ICICI Securities on Syngene International

Despite project phasing impact in development and manufacturing services segment in Q1, the management has maintained 20%+ revenue growth guidance. The company has recently added some elite clients like Amgen, Zoetis, Herbalife, GSK and multiple year extension of BMS and Baxter contracts. Thus, we expect strong three-pronged growth tempo, going ahead. Overall, the company remains well poised to capture opportunities in the global CRO space on account of strategic outsourcing by global innovators. We arrive at a target price of Rs 360 based on ~35x FY21 EPS of Rs 10.3.

Sectoral performance - monthly returns (%) by ICICI Securities


Top losers on the BSE at this hour

JSLHISAR 67.10 -1.90 -2.75
PVR 1,724.15 -60.60 -3.40
 
DISHTV 31.10 -1.10 -3.42
 
IBULISL 115.80 -6.00 -4.93
 
COX&KINGS 13.35 -0.70 -4.98
 

Top gainers on BSE at this hour

SOLARINDS 1,198.00 +28.90 +2.47
TV18BRDCST 22.10 +0.55 +2.55
 
BIOCON 246.60 +8.05 +3.37
 
AUBANK 663.55 +30.25 +4.78
 
SOUTHBANK 13.06 +0.71 +5.75
 

Sectoral gainers and losers on the NSE


First trade: Top gainers and losers on the S&P BSE Sensex


OPENING BELL

Indices open flat with negative bias, Sensex above 37,800; Nifty hovers around 11,250 levels

Derivative watch by Nirmal Bang Securities

NIFTY OPTIONS WATCH
  • Addition in OI were seen in 11500, 11400, 11300 strike Calls and at 11300, 11200, 11000 strike Puts indicating market likely to remain range bound in the near term.
  • Highest OI build-up is seen at 12000 strike Call and 11000 strike Put, to the tune of 1.36mn and 2.82mn respectively.
FII AND VIX
 
  • FIIs were net sellers in Cash to the tune of 126.7 Cr and were net sellers in index futures to the tune of 1177.70 Cr.
  • India VIX decreased by 0.98% to close at 12.63 touching an intraday high of 13.55.
STOCK OI WATCH
  • CIPLA, SRTRANSFIN saw built up of Long positions while RECLTD, MCX, OIL, CHOLAFIN and BANKNIFTY saw covering of Short positions.
  • CONCOR, INDIGO, TORNTPOWER, BHEL and UPL saw liquidation of Long positions while BAJFINANCE, IOC, BAJAJFINSV, TATAMOTORS and HINDPETRO saw built up of Short positions.

Momentum picks by ICICI Securities


Market at pre-open


Rupee opening

Rupee opens lower at 69.12/$ against Thursday's close of 69.04 against the US dollar

Stock to watch

Maruti Suzuki India: The country's largest carmaker Maruti Suzuki (MSIL) will report its June quarter earnings on Friday. Analysts expect a weak quarter for Maruti due to the slowdown in demand and plummeting volumes which would offset the gains due to higher net realization. 
 
Bajaj Auto: Bajaj Auto will declare its June quarter results on Friday. And, although the company has reported a rise in volumes in an otherwise subdued quarter for auto firms, analysts expect the inferior product mix and higher discounting to drag down the company's profit. READ MORE

Advance-decline ratio for July at 10-month low due to weak market sentiment

The advance-decline ratio (ADR) has hit a 10-month low in July, hurt by weak market sentiment. According to data from the bourses, the ADR for July stands at 0.73 — the lowest since September 2018. ADR is a popular market breadth indicator. It compares the number of shares that ended higher against those that ended lower, over their previous day’s close. In other words, the number of declining stocks far exceeds the number of advancing ones for July. READ MORE
Illustration by Binay Sinha

Bajaj Auto Q1 preview: Adverse product mix, discounts to weigh on profit

Bajaj Auto will declare its June quarter results on Friday. And, although the company has reported a rise in volumes in an otherwise subdued quarter for auto firms, analysts expect the inferior product mix and higher discounting to drag down the company's profit. According to data, Bajaj Auto's overall volume grew 1.7 per cent on a year-on-year (YoY) basis to 12,47,174 units in Q1FY20. Total motorcycle volume increased 4 per cent YoY, while three-wheeler volume declined 20 per cent YoY. READ MORE

ICICI Bank Q1 preview: Loan growth, lower provisions to aid PAT growth

ICICI Bank is scheduled to announce its April-June quarter earnings for financial year 2019-20 (Q1FY20) on Saturday, July 27. Analysts expect the private lender to report an over Rs 1,000 crore in net profit. Asset quality, especially in the power sector, and trends in loan restructuring would be keenly watched. Analysts at Sharekhan expect the bank to report a profit after tax (PAT) of Rs 1,377 crore as against a loss of Rs 120 crore in the June quarter of the previous fiscal (Q1FY19). READ MORE

Maruti Suzuki Q1 preview: Demand slowdown, low volumes to drag earnings

The country's largest carmaker Maruti Suzuki (MSIL) will report its June quarter earnings on Friday. Analysts expect a weak quarter for Maruti due to the slowdown in demand and plummeting volumes which would offset the gains due to higher net realization. During the quarter, MSIL volumes declined around 18 per cent year-on-year (YoY) and around 12 per cent quarter-on-quarter (QoQ) to 402,594 units. READ MORE

Bond yields surge on buzz that PMO is opposed to sovereign bonds

Now the plan could be to raise rupee-denominated bonds. According to a report by news agency Cogencis, the Prime Minister’s Office (PMO) has asked the finance ministry to issue rupee-denominated bonds, instead of foreign currency bonds. The agency quoted an anonymous source saying the decision was taken after stakeholder feedback following the Budget. This would eventually mean that the dynamics of the borrowing would be very similar to what the local bond yields determine. READ MORE

Today's picks: From JSW Steel to Tata Motors, hot stocks to watch on Friday

Nifty
 
Current: 11,252 (11,315)
 
Target: NA
 
Stop long futures positions at 11225. Stop-short futures positions at 11375. Big moves (index not futures) may go till 11425, 11100. A long Aug 8, 11100p (27), long 11500c (27) would hit breakeven if the index hits 11046, 11554 by Aug 08. READ MORE

Derivative strategy from HDFC Securities: Buy Tata Steel August Futures

Bear Spread strategy on TATA STEEL
 
Buy TATA STEEL August 430: Put at Rs 14 & simultaneously sell 410 Put at Rs 8.
 
Lot Size: 1061
 
Cost of the strategy: Rs 6 (Rs 6366 per strategy)
 
Maximum profit: Rs 14854 if Tata Steel closes at or below Rs 410 on August expiry
 
Break-even point: Rs 424 READ MORE

Commodity outlook by Tradebulls Securities: Sell copper, nickel

Silver speculators sharply boosted their bullish bets after 2 dull weeks. We continue to prefer silver against gold currently as silver has still catching up to do. Since the past 4-5 trading sessions, silver is outperforming gold and any dips have been bought into. We expect the trend to continue till end of this month. Silver bulls next upside target would be to break levels of $17 while next support is seen at $16. Silver’s rally may come under threat if bears can extend decline below $15.835. READ MORE

Bulk deals on NSE as on Thursday

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


Rupee check

Source: Bloomberg


Oil check

At 8:16 am, Brent Crude Futures were trading at $63.31 per barrel
.

SGX Nifty

At 8:15 am, SGX Nifty was trading at 11,276.5 levels, down 24.5 points. 

Asian Market check

Source: Reuters


US Market check

Source: Reuters


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