F&O expiry: Sensex gains 209 pts; Nifty Metal index zooms 5%, PSB index 3%

Topics MARKET LIVE | MARKET WRAP | Markets

Stock market updates: Equity markets got their mojo back on Thursday, the day of monthly expiry of the July F&O series, as global markets stabilised after three-days of drubbing. Asian markets ended higher, led by Hong Kong's Hang Seng (up 3 per cent), while European stocks hit fresh record highs after US Federal Reserve Chair Jerome Powell kept interest rates unchanged and said the US central bank wishes to see "some strong job numbers" in coming months before tapering the bond buying programme.

Meanwhile in China, top securities regulator privately told global financial institutions that Beijing will consider the impact on markets when it introduces new policies in the future, The Wall Street Journal reported. 

Against this backdrop, the S&P BSE Sensex gained 209 points, or 0.4 per cent, to end at 52,653 levels, led by Tata Steel (up 6.8 per cent), Bajaj twins, SBI, HCL Tech, and Sun Pharma. 

It's NSE counterpart Nifty50, meanwhile, ended tad below 15,800-mark at 15,779, up 69 points. The BSE Mid- and SmallCap indices, too, added 0.39 per cent and 0.90 per cent, respectively.

LIVE UPDATES

TECH VIEW :: Rohit Singre, Senior Technical Analyst at LKP Securities

The Nifty index managed to close the day on a positive note at 15,778 with gains of half a per cent and has formed a Doji candle pattern on the daily chart.

The index has formed a good base near 15,750-15,650 zone; Holding above these levels will help to sustain the bullish momentum.

Any dip around the above mentioned support will be a buying opportunity.

We may head towards upper band of the range which is 15,950-16,000 mark. Immediate resistance is near 15,800-15,875 zone.

MARKET RECAP :: S Ranganathan, Head of Research at LKP Securities

The Fed decision to keep interest rates steady and liquidity infusion by the PBOC brought back bulls today morning as Metals led the rally buoyed by an expected rise in steel consumption. Aluminum Stocks too joined the party today well supported by Midcap IT stocks

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

Global markets were on track to rebound after the panic sell-off surrounding Fed policy and Chinese tech crackdown cooled off. Despite the hawkish commentary from Fed, it did not signal a rush to taper the stimulus measure. China’s attempt to calm investor's nerves also helped the market to take a breather. Meanwhile, metal stocks were sparked by the huge infrastructure fiscal package finalized in the US, in anticipation of high demand

Volatility Alert

>> India VIX ends 5.5% lower at 12.95

Sector Watch :: Only 3 of 15 constituents end higher


Sector Watch :: PSBs rally on strong June quarter show


Sector Watch :: Metal index surges 5%; Hindalco, Nalco, Tata Steel top gainers


Balrampur Chini Mills leaps 7% on share buyback plan


PVR ends nearly 2% higher on in-line Q1 result


Maruti Suzuki slips 2% as Q1 nos miss estimates


Tech M will be in focus in Friday's session

Information technology major Tech Mahindra reported a 39.17 per cent year-on-year (YoY) jump in its consolidated net profit at Rs 1,353.2 crore for the April-June period of financial year 2021-22 (Q1FY22) as against Rs 972.3 crore posted in the corresponding quarter last year. On quarter-on-quarter basis, the profit rose by 10.12 per cent. READ MORE


Index contributors :: Tata Steel, SBI, RIL top contributors towards today's gains


Broader market :: BSE MidCap index underperforms, ends 0.4% higher


Sectoral trends on the NSE


Sensex Heatmap at Close

Top gainers: Tata Steel, Bajaj Finserv, SBI, HCL Tech

Top losers: Maruti Suzuki, Power Grid, Bajaj Auto, ITC


June Quarter Results :: Tech M

>> PAT: Rs 1,353 crore

>> Revenue: Rs 10,198 crore

>> Ebit: Rs 1,545.3 crore

> Ebit margin: 15.2%

CLOSING BELL

The S&P BSE Sensex gained 209 points, or 0.4 per cent, to end at 52,653 levels, led by Tata Steel (up 6.8 per cent), Bajaj twins, SBI, HCL Tech, and Sun Pharma. 
 
It's NSE counterpart Nifty50, meanwhile, ended tad below 15,800-mark at 15,779, up 69 points.

Union Bank Q1 Results

>> PAT at Rs 1181 crore vs Rs 333 crore YoY
 
>> Net NPA at 4.69% vs 4.62% QoQ

June Quarter Results :: Laurus Labs

>> PAT: Rs 240 crore vs Rs 170 crore YoY

>> Revenue: Rs 1,278 crore vs Rs 974 crore YoY

>> Ebitda: Rs 395.5 crore vs Rs 278.3 crore YoY

Note: Figures are at consolidated level

IPO CHECK :: Glenmark Life Sciences subscribed over 35 times so far


Global markets :: Hang Seng up 3% amid reports China securities' regulator has stepped in to arrest mkt fall


Corporate Action :: Mahindra Holidays zooms over 3% on bonus issue plan

>> Recommended the issue of Bonus Equity Shares in the proportion of 1:2 i.e. 1 bonus equity share of Rs.10/- each for 2 fully paid-up equity shares of Rs.10/- each held as on the Record Date, subject to approval of the Members of the Company.


June Quarter Results :: PVR reports net loss of Rs 220 crore

>> Revenue: Rs 59.4 crore


June Quarter Results :: Aavas Financiers

>> PAT: Rs 59 crore vs Rs 50 crore YoY

>> Revenue: Rs 263 crore vs Rs 229 crore YoY


June Quarter Results :: LIC Housing Finance

>> Net profit: Rs 153.4 crore vs Rs 817.5 crore YoY

>> NII: Rs 1,275.3 crore vs Rs 1,220.6 crore YoY


SBI inches towards record high ahead of Q1 results; stock up 3%

The stock of the state-owned lender had hit an all-time high of Rs 442 on June 3, 2021, after it reported a strong set of numbers for the March 2021 (Q4FY21) quarter. Since then, it has underperformed the market by falling 3.4 per cent, as compared to a 0.66 per cent rise in the S&P BSE Sensex. Trading volumes on the counter jumped 1.5 times, with a combined 18.36 million equity shares having changed hands on the NSE and BSE till 01:40 pm. READ MORE

June quarter results :: FUTURE RETAIL

>> Loss at Rs 1,067 crore vs Rs 475 crore YoY
 
>> Revenue at Rs 2,015 crore vs Rs 4,492 crore YoY
 

Beauty startup Nykaa seeks $4 billion valuation in IPO

India’s Nykaa is preparing to file for an initial public offering that could value the startup at more than $4 billion, according to people familiar with the matter, another sign of the growing interest in India’s technology sector.
 
The country’s top e-commerce company for beauty, founded by Falguni Nayar, is aiming to file its draft red herring prospectus, or DRHP, within the next few days, said the people, asking not to be named because the matter is private. It plans to sell just more than 10% of the equity, one of the people said, which could raise $400 million or more. READ MORE
Falguni Nayar, founder and chief executive officer of Nykaa

NEWS ALERT :: Windlas Biotech IPO to open on Wednesday, Aug 04

>> The company is a manufacturer of pharmaceutical formulations
 
>> Price Band has been fixed at Rs 448-460 per share
 
>> Offer comprises of fresh issue aggregating up to Rs 165 crore fresh issue and an offer for sale of up to 5,142,067 shares

Back to old normal: FMCG leaders beat FY21 blues, exceed pre-Covid levels

In spite of a severe second wave of the coronavirus pandemic, and a widespread disruption in public life therefore, India’s fast-moving consumer goods (FMCG) sector seems to have emerged as one of the most resilient segments of the economy. The early numbers and estimates for the April-June quarter indicate a steady recovery in FMCG players’ business, which is now set to exceed the pre-pandemic level. READ MORE

Balrampur Chini Mills soars 8%, hits record high on share buyback plan

Shares of Balrampur Chini Mills moved higher by 8 per cent to hit a record high of Rs 376.75 on the BSE in the intra-day trade on Thursday after the company announced its share buyback plan. The stock of the sweetener surpassed its previous high of Rs 370, touched on June 29, 2021. READ MORE


Metal shares rally; Tata Steel, Hindalco, Vedanta surge up to 10%

Shares of metal companies were in focus as they rallied by up to 10 per cent on the bourses on expectation of higher demand and amid reports that China may soon impose export duties on steel products. As per reports, China is considering imposing more export duties, between 10-25 per cent, on steel products including Hot-Rolled Coil from August 1. On the earnings front, analysts expect domestic steel companies to report a healthy quarter (in terms of EBITDA/tonne), driven by higher steel prices for April-June quarter of the financial year 2021-22 (Q1FY22). READ MORE

 

NEWS ALERT :: JSW Energy signs pact with Fortescue Future for Green Hydrogen

Source: TV Reports
 

Attractive stock markets may keep investors away from gold: Analysts

Attractive equity markets and volatile gold prices may prove to be a deterrent for an investment in the yellow metal in the second half of 2021, suggests the latest report from World Gold Council (WGC). That said, the upcoming festival season, including Dhanteras and the wedding season in the October – December quarter of 2021, WGC believes, may see an uptick in demand for the yellow metal. READ MORE


EXPERT VIEW :: Madhavi Arora, Lead Economist, Emkay Global Financial Services on FOMC

>> Fed officials unanimously agreed to hold policy steady at the July FOMC meeting as expected, while also announcing two standing repo facilities to address money market pressures.

>> Of note, on composition of tapering, Jerome Powell threw cold water on the idea of an early start to tapering MBS vs USTs, but indicated some support for tapering MBS purchases more rapidly than USTs.

>> He also re-affirmed that despite rising, inflation expectations are still a little low vs Fed’s definition of price stability. And that Fed stands ready to deploy its tools if inflation expectations rise undesirably, but stressed that is not his base case.

>> Market reaction: Despite a no surprises, 10-yr UST slid further to 1.23% possibly hinting at stagflation risks or correcting Fed’s supposed mistake of being active on the idea of tapering. We maintain Treasuries appear dislocated from fundamentals .
 
>> The Catalysts such as labor market tightening, higher supply or a renewed push for the bipartisan infrastructure package may be needed to push yields higher. We see UST yields at 1.65%+ by end-CY21 and still see steam in reflation trade/risk assets.
 
 

Tech view: These 28 stocks are on the verge of 'Golden Cross' breakout

The market participants consider 200-DMA as the most relevant indicator to arrive at trading and investing conclusions. Stocks that trade above 200-DMA are said to have gained momentum and are anticipated to move higher, with a lesser probability of facing selling pressure and vice versa. READ MORE

Q&A | 'Earnings upgrade cycle seen over the last two-three quarters may end'

There have been no positive surprises in the ongoing results season. Indeed, some banks, autos, technology companies which have reported seem to have missed forecasts on aggregate. Needless to say, it’s too early to make conclusions at this time. It feels like the earnings upgrade cycle, seen over the last two-three quarters, may end. At the same time, forecasts are not very optimistic, due to the hit from the second wave during Q1FY22. From that perspective, we reiterate that the overall index upside may be capped in the short-to-medium term. It will remain a stock pickers market. READ COMPLETE INTERVIEW HERE

JUNE QUARTER RESULTS :: COLGATE

>> Standalone profit at Rs 233 cr vs 198 cr YoY
 
>> Standalone revenue at Rs 1158 cr vs Rs 1034 cr YoY 

Sneha Poddar, AVP – Research Analyst, MOFSL on Tatva Chintan listing

Tatva Chintan Pharma Chem (TCPCL), one of the leading specialty chemicals manufacturer globally, had a stellar debut on the exchanges today with  95% premium at INR 2112/Share against its issue price of Rs1083/share. it further rallied towards its intraday high of Rs2486, gaining ~130%. After Clean Science, TCPCL is the second company in the green chemical space to get list on the bourses. For some of its products it is the only manufacturer in India and among the largest globally. Its products have various applications in green chemistry, which is gaining prominence considering the growing focus on clean and sustainable technologies. Tatva Chintan is expected to do well due to its leadership position, wide product portfolio, strong client relationship and capacity expansion leading to strong growth ahead.

Tejas Networks hits upper circuit as Tata Sons arm to buy controlling stake

Shares of Tejas Networks were locked in upper circuit of 5 per cent at Rs 246 on the BSE in Thursday's session after the company announced that Panatone Finvest Limited, a subsidiary of Tata Sons, will buy a 43.3 per cent stake in the telecom related services firm for Rs 1,850 crore. The stock of Tejas Networks hit upper circuit for the fifth straight day. READ MORE


NEWS ALERT :: Tata Tele & Zoom partner to provide communications solutions to enterprises


Sensex extends gains, trades at day's high


Maruti Suzuki slips 3% on disappointing June quarter results

Shares of Maruti Suzuki India (MSIL) dipped nearly 3 per cent to Rs 6,965 on the BSE in intra-day trade on Thursday, down 4 per cent in past two trading days, after the car and utility vehicles company reported disappointing numbers for the quarter ended June 2021 (Q1FY22). READ MORE


Tatva Chintan makes solid debut; lists at 95% premium over issue price

Tatva Chintan Pharma Chem made a stellar stock market debut, with its shares getting listed at a whopping 95 per cent premium over its issue price of Rs 1,083 per share on the National Stock Exchange (at Rs 2,111.85) and BSE (at Rs 2,111.80). The stock of the specialty chemicals more-than-doubled or zoomed 133 per cent at Rs 2,534.20 within a few seconds of its listing on the NSE. On the BSE, the stock hit an intra-day high of Rs 2,486.30 post its listing. READ MORE


Tencent becomes world's worst stock bet with $170 billion wipeout

China’s unprecedented crackdown on its technology industry has turned Tencent Holdings Ltd. from a market darling into the world’s biggest stock loser this month. The Chinese Internet giant had tumbled 23% in July as of Wednesday, set for its worst month ever after erasing about $170 billion of market value. That marks the fastest evaporation of shareholder wealth worldwide during this period, Bloomberg data shows. READ MORE


NEWS ALERT :: Tatva Chintan extends gains after listing at Rs 2,112


MARKET VIEW | V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

A major trend that has emerged post-Covid is the rise of the retail investor. Retail investors now account for 45 % of cash market transactions on Indian exchanges, a big jump from 33% five years ago. During this period, the share of FIIs have fallen sharply from 23% to 11%. This domination of retail over FIIs is the reason why markets are not correcting sharply even when FIIs sell continuously. (FIIs have sold Rs 6100 cr worth shares this week) But it is a fact that most retail investors are driven by sentiments & momentum, not fundamentals. Meanwhile, in another boost to the bulls, the Fed has kept the rates unchanged and reiterated that "we are nowhere near considering a rate hike." Also, the bounce back in Hang Seng & Shanghai indexes suggests that the Chinese tech sell-off is a temporary issue & unlikely to become a contagion impacting global markets.

NEW LISTING :: Tatva Chintan settles at Rs 2,112 apiece in pre-open

>> Issue price: Rs 1,083


NEWS ALERT :: Tata Sons unit to make open offer for 26% stake in Tejas Networks

>> Tejas Networks approves preferential issue up to Rs 1,850 cr to Panatone Finvest, a Tata Sons co consisting of equity shares & warrants
 
>> Sanjay Nayak to continue as CEO after Tata investment
 

Tech Mahindra gains 1% ahead of Q1 results

Brokerages project a 16-23 per cent year-on-year (YoY) rise in Tech Mahindra's June quarter profit and a 10 per cent jump in revenue on 1 per cent contribution from acquisitions and ramp-up in deals won in prior quarters.

Results Impact :: SIS declines 3%

>> Security and Intelligence Services (SIS) reported a marginal increase in net profit to Rs 60 crore for the first quarter ended June 30. The cash logistics and security services firm had posted a net profit of Rs 58 crore in the year-ago period.

Earnings Impact :: Route Mobile slides 3% post Q1 numbers

>> Communication services firm Route Mobile posted a 27.44 per cent YoY jump in consolidated profit after tax to Rs 34.3 crore for the first quarter ended June 30, 2021. Route Mobile's revenue from operations grew around 22 per cent to Rs 377.5 crore during the reported quarter, from Rs 309.6 crore in the corresponding quarter of 2020-21

Results Impact:: Happiest Minds slips over 1%

>> The IT firm reported a nearly 29 per cent decline in consolidated net profit to Rs 35.73 crore in the June 2021 quarter as against a net profit of Rs 50.18 crore in the year-ago period. Its revenue, however, grew 41.4 per cent YoY at Rs 331.52 crore.

Results Reaction :: Maruti Suzuki dips 2% on lower-than-expected Q1 numbers

>> India’s largest domestic automobile manufacturer Maruti Suzuki India on Wednesday reported a standalone net profit of Rs 440.8 crore for April-June quarter of FY22 (Q1FY22), hit by increased tax expenses and lower sale volumes. The company had posted a net loss of Rs 249.4 crore in the year-ago period.
 

Earnings Impact :: Nestle India trades marginally lower

>>  The company reported a 10.7 per cent YoY growth in its profit after tax for the April-June quarter. Its net sales for the quarter surged by 13.8 per cent YoY to Rs 3,462.4 crore from Rs 3,042 crore.

Sector Watch :: All sectoral indices on NSE trade in the green


Broader markets move in tandem with benchmark


Sensex Heatmap | Top gainers & losers at opening tick


OPENING BELL :: Nifty50 eyes 15,800


OPENING BELL :: Sensex rises 200 points


COMMODITY CHECK


Sensex Heatmap | Top gainers & losers in pre-open trade


Pre-open session :: Nifty50 trades flat


Sensex gains 140 points in pre-open session


Top stocks to watch today

Listing Today: Shares of Tatva Chintan Pharma Chem will debut on the bourses on Thursday. The second most subscribed IPO of 2021, with 180 times bids is set to double on listing. The grey market premium for the stock surged by Rs 1,140-1,150 or 105-110 per cent over the issue price of Rs 1,083 ahead of listing.
 
Nestle India: The company reported a 10.7 per cent YoY growth in its profit after tax for the April-June quarter. Its net sales for the quarter surged by 13.8 per cent YoY to Rs 3,462.4 crore from Rs 3,042 crore. READ MORE

Market Ahead Podcast :: Top factors that could guide markets today

With two initial public offers (IPOs) running, activity remains high in the primary market. Rolex Rings IPO was fully subscribed within hours of opening on Wednesday and closed the trade with 3.84 times subscription. Glenmark Life Sciences was subscribed 5.78 times on the second day of subscription and closes today. LISTEN TO THE PODCAST HERE

Stock ideas by Ajit Mishra of Religare Broking

Bharat Electronics Limited
 
Recommendation: Buy
 
Target: Rs 202
 
Stop loss: Rs 180
 
BEL witnessed a breakout from a narrow congestion band of Rs 180-186 levels on July 28 after nearly a month. It’s currently trading at its record high and looks firm to continue the prevailing trend. We thus suggest traders to create fresh longs as per the given range. READ MORE

Bhavik Patel of Tradebulls Securities is bearish on Silver

The silver market, meanwhile, is also now massively underperforming gold, with the gold/silver ratio currently trading above 72 points, a level not seen since the start of the year. Despite base metals showing healthy upside this week, silver continues to drift downside. It appears that concerns about renewed economic restrictions in response to the spread of the Delta variant of coronavirus are weighing more heavily at present. READ MORE

Bulk deals on the NSE as on Wednesday

Bulk deals on the BSE as on Wednesday

FII/FPI selling extends

They have offloaded equity worth Rs 5,269 cr so far in July


Rupee check

Source: Bloomberg


Oil check :: Brent hovers around $75/barrel-mark


SGX Nifty alert

>> Nifty Futures on the Singaporean Exchange were trading 12 points up at 15,719 level at 8:25 AM.

Wall Street on Wednesday

US markets ended listless with S&P500 flat, Nasdaq up 0.7 per cent and Dow Jones down 0.3 per cent.

Asian markets trade higher

In Japan, the Nikkei 225 advanced 0.56 per cent, South Korea's Kospi rose 0.31 per cent, the S&P/ASX 200 in Australia climbed 0.29 per cent, and MSCI's broadest index of Asia-Pacific shares outside Japan traded 0.25 per cent higher.

Hong Kong's Hang Seng index advanced nearly 2 per cent while China's Shanghai Composite added 1 per cent.

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