Sensex, Nifty Fall as Asian Peers Sulk Over BOJ Letdown; ICICI Falls 3.1% Ahead of Results
The S&P BSE fell 0.5 percent to 28,055, while the NSE Nifty drops 0.3 percent to 8,638.
Here’s a quick wrap up of all that you might have missed in the markets today.
Closing Bell
Indian stocks fell, paring a monthly advance, as a combination of below par first quarter earnings and weak Asian markets after the Bank of Japan’s policy decision, weighed on investor sentiment.
The S&P BSE Sensex loses 0.5 percent to 28,051; while the NSE Nifty declines 0.3 percent to 8,638, but advance 4.9 percent for the month, best since March.
The midcaps fare slightly better than their larger peers, with the BSE Midcap index closing 0.7 percent higher. The BSE Auto Index is the top performer among the 19 sectoral gauges on the exchange.
The market breadth is skewed in favour of the declines at 1,446, compared to advances at 1,235.
Dr Lal PathLabs Snaps 7-Day Losing Streak on Q1 Profit
Shares of the diagnostic chain operator jump as much as 4.9 percent to Rs 1,009, snapping a seven day losing streak, after it posts a 29 percent increase in first quarter net profit at Rs 37.55 crore.
Its group net sales came in at Rs 223 crore for the June quarter, compared to Rs 189 crore same period last year.
RBI to Keep Rates Unchanged in Aug 9 Policy, Says ICRA
RBI is unlikely to cut policy rates in its upcoming monetary policy review on August 9, but a 0.25 per cent cut is on cards in 2016, Aditi Nayar, Senior Economist, ICRA said in a research note.
The higher the tolerance for inflation at the retail level, the higher the interest rates that savers would demand to remain invested in financial savings, which would ultimately impair the appetite for borrowingAditi Nayar, senior economist at ICRA writes.
Interestingly, Nayar said with economic growth expected to pick up sharper rate cuts may not be needed.
With inputs from PTI
Karnataka Bank Falls After Q1 Bad Loans, Provisions Rise
Shares of south-based lender erase gains to fall as much as 2.5 percent after its first quarter provisions and bad loans expand.
The bad loans for the June quarter came in at 3.92 percent against 3.44 percent in the preceding month. Provisions went up to Rs 136 crore, compared to Rs 116 crore a year ago period.
The net profit during the period came in at Rs 122 crore, up 5 percent year-on-year.
Alembic Pharma Jumps 4.3% After Q1 Net Rises
Shares of the drug maker rise as much as 4.3 percent to Rs 638, most since June 30, after it reported a 45 percent jump first quarter net income.
The Vadodara-based firm reports a net profit of Rs 104 crore for quarter-ended June, compared to Rs 71.73 crore same period last year. Its revenues came in at Rs 727 crore, an increase of 25 percent year-on-year.
Europe Trades Higher
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Godrej Consumer Falls After Q1 Net Misses Estimate
Shares of FMCG firm fell as much as 2.2 percent to Rs 1,598 after it reports a net profit of Rs 244.3 crore, lower than the Rs 260.5 crore estimated by analysts polled by Bloomberg.
FIIs Hold 8 Long Positions for Every 1 Short Position in Index Futures
Foreign institutional investors now hold long positions in nearly 2.5 lakh contracts in index futures, against only 32.8 thousand contracts in short positions, according to data available on the National Stock Exchange. (More details HERE)
JUST IN: India Lists GST Bill for Consideration, Passage Next Week, Says PTI
The much-awaited, much-talked about Goods and Service Tax bill will be up for consideration and passage in the Rajya Sabha next week.
Earlier this week, Prime Minister Narendra Modi’s cabinet met a key opposition demand on proposed legislation that would clear the way for a national sales tax, putting India closer to passing its most ambitious economic reform since the 1990s.
So, what makes GST the most important economic reform of the last couple of decades? Click HERE to find out.
Indoco Remedies Drops After Q1 Net Misses Mark
Shares of pharma firm drop as much as 3.8 percent to Rs 310 after it reports a 5 percent decline in June quarter net profit at Rs 19.79 crore. A Bloomberg poll of analysts had anticipated the June quarter profit at Rs 23 crore.
It clocks net sales of Rs 253 crore for the first quarter, compared to Rs 218 crore same period last year.
Delhi High Court Sends SpiceJet Founder Dispute into Arbitration
The Delhi High Court has sent the share transfer dispute between Kalanithi Maran and his KAL Airways against SpiceJet into arbitration. The court has also directed low-cost carrier to deposit the dispute amount of Rs 580 crore in five installments. (More on the news HERE)
Shares of the south-based firm trims some of its early morning gains, currently up 1.9 percent at Rs 68.
Eicher Motors at All-Time High After Q1 Net Jumps 59%
Shares of the bike and truck maker gain as much as 6.1 percent to Rs 22,382 on the BSE. Yesterday, it clocked net profit jump of 58 percent to Rs 376 crore, compared to the previous quarter, beating analyst estimate of Rs 318 crore.
The stock is also the top performer on the Nifty, and the most traded Indian stock by value.
Stocks Radar: JP Associates, Reliance Infra, Eicher Motors and More
Opening Bell
Indian shares decline in line with their Asian peers, after Bank of Japan decided to refrain from boosting the pace of government-bond purchases that have formed the main part of its monetary stimulus. (More on the Bank of Japan monetary policy HERE)
The Midcap index (+0.7 percent) outperforms its larger peer, while the Auto, followed by the Realty, lead among the 19 sectoral gauges on the BSE.
Earnings to Watch
- Alembic Pharmaceuticals
- Cholamandalam Investment
- Crompton Greaves Consumer
- Dr. Lal Path Labs
- Elgi Equipment
- Godrej Consumer Products
- ICICI Bank
- IIFL Holdings
- Kansai Nerolac Paints
- KEC International
- Larsen & Toubro
- Mahindra Holidays & Resorts
- Nestle India Q2
- Narayana Hrudayalaya
- Pidilite Industries
- PVR
- Religare Enterprises
- Shoppers Stop
- Sun Pharma Advanced
- UPL
- Vedanta
Earnings Reaction to Watch
- Blue Dart: Q1 profit Rs 44.08 crore versus Rs 44.72 crore YoY
- Ceat: Q1 profit Rs 104 crore versus Rs 122 crore
- Eicher Motors: Q1 profit Rs 376 crore versus Rs 237 crore
- Gujarat State Fertilizers: Q1 profit Rs 46.3 crore rupees versus Rs 100 crore
- L&T Infotech: Q1 net income Rs 236 crore versus Rs 175 crore
- Muthoot Finance: Q1 profit Rs 270 crore versus Rs 183 crore
- Shriram City Union: Q1 profit Rs 182 crore versus Rs 148 crore
- Gujarat Alkalies: Q1 net rises 95 percent YoY to Rs 86.26 crore
- Hexaware Tech: Q2 net Rs 100 crore versus Rs 98.89 crore YoY
- Muthoot Finance: Q1 net jumps 48 percent YoY to Rs 270 crore
- Tamil Nadu Newsprint: Q1 net buy 33 percent YoY to Rs 69.51 crore
Stocks to Watch
- Hindustan Construction: Banks approve Rs 1000 crore additional funding for road project
- UltraTech Cement: Won coal linkages at Rs 150/tonne premium from Dipka mines
- GMR Infrastructure, GVK Power: India’s 14.3GW gas-fired plants stranded for lack of fuel, power minister Goyal says
- Somany Ceramics: To raise stake in Vintage Tiles to 50 percent from current 26 percent
- Tata Motors: To sell up to Rs 400 crore 8 percent bonds in private placement
- Kirloskar Industries to buy VSL Steel’s assets for Rs 155 crore
- JP Associates: Missed payments on Rs 36 crore NCDs
- Brookfield in Talks to buy Reliance Infra’s Road Assets (Economic Times)
- Jet Airways: To raise $185 million loan from West Asian banks; launches Independence Day special sale offer (Mint and Economic TImes)
- FTIL: Faces Rs 3,190 crore copyright case over its trading software (Mint)
- Kesoram Industries: Plans Rs 600-crore capex for 2016-17 (Economic Times)
Get the complete list of stocks to watch HERE
Analyst Ratings/Research
- JSW Steel: Cut to underperform from hold at Jefferies
- Power Grid: Cut to hold from buy at Jefferies
- Ambuja Cements: Raised to buy at ICICIdirect
- Dabur India: Cut to hold at Anand Rathi Securities
- Dr. Reddy’s: Cut to hold at ICICIdirect
- Zee Entertainment Network: Rated new buy at Anand Rathi Securities
- Hathway Cable: Rated new hold at Anand Rathi Securities
Talking Points
- India approves bill to unlock $6 billion afforestation fund
- Rajnath Singh to visit Pakistan to attend SAARC meeting August 4
- India notifies simplified excise norms for jewellery sector
- MMTC seeks to import 40,000 tons red lentil
- Opportunities in Indian power market draw global utilities
- RBI allows demat holders to buy government notes via NDS-OM platform
- India’s Congress party says more talks on GST due next week
- China’s Fosun Pharma to acquire Gland Pharma for up to $1.26b
*Deal to be the biggest Indian asset purchase by a Chinese firm (More details HERE)
- Normal, above normal rain seen in Central India in 7- days: IMD
*India monsoon rainfall about normal as of July 27
- Global funds buy Rs 1,770 crore of local stocks; domestic funds sell Rs 1,070 crore yesterday: Provisional data
Good Morning!
The Nifty Futures on the Singapore Exchange, an early indicator of Nifty performance in India, is little changed at 8,696.
Asian stocks swung between gains and losses as the yen strengthened in volatile trading before the Bank of Japan’s policy decision. Thirty-two of 41 analysts in a Bloomberg survey forecast that the BOJ will expand its record stimulus programme at the meeting.
On Thursday, U.S. stocks rose, with the S&P 500 Index staging an afternoon advance as it heads for a fifth monthly gain amid a raft of corporate results.
Facebook Inc. advanced after reporting sales and user growth that beat analysts’ projections. Ford Motor plunged as quarterly profit fell short of estimates and it warned that income targets are at risk.
With the earnings season almost half way through, more than 80 percent of S&P 500 companies have posted profit that beat projections, while almost 60 percent topped sales estimates.
Crude oil is headed for its biggest monthly loss in a year, as U.S. crude and fuel supplies remained around the highest seasonal level in decades. Crude prices have now fallen for seven straight sessions. (Read: Crude Oil 200-Day Moving Average: The Next Big Test)
Gold is set for its first weekly gain in three weeks as safe haven demand picks up.