KEY HIGHLIGHTS
Closing Bell: A Volatile Session
Indian equity markets gave up early session gains to end little changed as Tuesday's outperformers - Reliance Industries and HDFC Bank dragged benchmarks lower.
The S&P BSE Sensex ended little changed at 37,663 while the NSE Nifty 50 index ended 0.2% higher at 11,117.
Metals and Auto stocks were the outperformers in today's session. Four out of the top five Nifty gainers belonged to these two sectors.
The Metal index ended with gains of 4.2%, led by Hindalco and Tata Steel which rose 8.7% and 6.7% respectively.
The Auto index saw gains of over 2% led by Eicher Motors (up 4.4%) and Tata Motors (up 3.7%).
Reliance Industries and HDFC Bank, which contributed 80% to Nifty's 200 point surge yesterday, contributed 35 points to the downside in today's session, keeping the gains in check.
Pharma and PSU banks underperformed in today's trade with the respective indices ending with modest losses.
Broader markets outperformed in today's session. The midcap index gained 0.6% while the smallcap index gained 1.2%.
The India Volatility Index ended 1.3% lower at 23.5.
Market breadth remained in favour of the gainers. 1,156 stocks on the NSE ended with gains while 664 declined.
How Have The Sectoral Indices Fared
Top Nifty Gainer: Hindalco
- Gains as much as 8.9% to Rs 176.7.
- Biggest single-day gain in over three months
- Trades at the highest level in over five months
- Up for the second straight day
- Today's volumes are nearly triple its 20-day average
- Breaks above its 200-Day Moving Average at 164
- Stock heading towards overbought territory with Relative Strength Index (RSI) at 69
- The stock has more than doubled from its 52-week low of Rs 85 on March 23, 2020
- 24 out of the 25 analysts tracking the stock have a buy recommendation
- Return potential of the stock as per Bloomberg data is 9.9%
Brokerage Reaction: Aegis Logistics
The stock has gained after Nomura initiated coverge on the stock with a buy rating.
Nomura’s Rationale:
- Secular play on India's shift to cleaner LPG
- Sustainable growth story not only on environmental but also socio-economic investment considerations
- Thrust on LPG distribution should lead to strong growth over next two decades
- Key Risks: Sharp rise in LPG prices, development of cross-country natural gas pipeline infra
Shares gained as much as 10.33% to Rs 209.9. The stock is up for the second straight day.
Buzzing Stock: Sunteck Realty
- Top performing stock on the Nifty Smallcap index
- Gains as much as 18.9% to Rs 226.5
- Biggest single-day gain since April 2011
- Trading at the highest level in five months
- Up for the second straight day
- Today's volumes are almost six times higher than its 20-day average
- Breaks above its 100-Day Moving Average of 187.8
- Stock enters overbought territory with Relative Strength Index (RSI) at 71
- Has recovered 52% from 52-week low of Rs 145 on May 27, 2020
- 10 out of the 11 analysts tracking the stock have a buy recommendation; 0 sell calls
- Return potential of the stock as per Bloomberg data is 27.6%
Stock Reaction: Greenlam Industries
Madhusudan Kela of MK Ventures purchased 0.63% stake or 1.52 lakh shares in the company at Rs 585 per share, according to data on the exchanges.
Westbridge Crossover Fund sold 19 lakh shares or close to 8% stake in the company on Tuesday.
Among other buyers were Blue Diamond Properties - which purchased a 7% stake and Winro Commercial, which purchased a 1.1% stake.
Shares gained as much as 6.6% to Rs 786. The stock is up for the second straight day.
Earnings Reaction: Cera Sanitaryware Q1FY21
- Revenue down 47% to Rs 142.6 crore
- Net profit down 85% to Rs 2.9 crore
- Ebitda down 81% to Rs 6.6 crore
- Ebitda margin at 4.6% from 13.2%
- Loss of production and sales are material
- Increased focus on collection, cash flow management has further solidified liquid cash position
- Have substantial liquidity position with no long-term debt
Shares fell to the day's low, declining as much as 2.9% to a three-month low of Rs 2,150.
F&O Snapshot: Active Options Contracts
- Nifty August futures add 2.2% and 2.33 lakh shares in Open Interest.
- Nifty Bank August futures add 16.5% and 2.3 lakh shares in Open Interest.
Nifty: August 6 Expiry
- 11,200 Call: Premium down 4% to Rs 24. The contract has added 25.5 lakh shares in Open Interest.
- 11,100 Put: Premium down 45% to Rs 39.6. The contract has added 13.3 lakh shares in Open Interest.
- 11,000 Put: Premium down 56% to Rs 15.1. The contract has added 5.5 lakh shares in Open Interest.
Nifty Bank: August 6 Expiry
- 22,000 Call: Premium down 18% to Rs 68.6. The contract has added 5.7 lakh shares in Open Interest.
- 21,500 Put: Premium down 45.3% to Rs 132.1. The contract has added 2.22 lakh shares in Open Interest.
- 21,000 Put: Premium down 63.3% to Rs 29.8. The contract has added 26,000 shares in Open Interest.
Markets At 2:20 P.M.
- Benchmark indices continue to remain flat
- Nifty up 0.1% at 11,109
- Sensex unchanged at 37,706
- Nifty Bank up 0.5% at 21,589
- Nifty Midcap index up 0.8%
- Nifty Smallcap index up 1%
- India Volatility Index down 1.3% at 23.51
- Nifty Metal remains top sectoral gainer; up 3.5%
- Nifty Media and Nifty Auto gain 1.5% each
- Nifty Pharma (down 0.3%) and Nifty FMCG (down 0.2%) are the only sectoral laggards
- Hindalco remains the top Nifty gainer; up 6.5%
- HDFC Life is the top Nifty laggard; down 1.4%
- 1,124 stocks on the NSE trade with gains while 654 decline
Earnings Reaction: Strides Pharma Q1FY21
- Revenue up 15% to Rs 781.8 crore
- Net profit up to Rs 101.8 crore from Rs 25.4 crore
- Ebitda up 28.1% to Rs 154.8 crore
- Ebitda margin at 19.8% from 17.6%
- Forex gain of Rs 39 crore this quarter as compared to forex loss of Rs 27 crore in the base quarter
- U.S. business revenue up 8% to Rs 373.8 crore
- Other regulated market revenue up 53% to Rs 260.6 crore
- Africa business sees a growth of 73% while institutional business sees 30% growth from the previous quarter
Outlook For FY21:
- Strong comeback quarter despite Ranitidine withdrawal
- Challenges around Covid-19 will remain an overhang on the industry
- See softness in demand led by lower prescription rates, decline in effective surgical procedures and lower footfalls at pharmacies
- Expect rise in operating costs including higher logistics cost
- Remain cautiously optimistic on the overall business outlook for FY21
Shares ended with gains of 14% - the most in nearly four months at Rs 547. This is the highest level for the stock since January 2019. The stock rose for the fourth straight day.
Money Market Update
The rupee managed to halt a two-day losing streak after ending with marginal gains in today's session.
The currency ended at 74.94 against the U.S. Dollar as compared to Tuesday's close of 75.04. It made an intra-day high of 74.83, before giving up some of the gains.
Despite the gains, the rupee was the fourth worst performing currency in Asia as most of its peers managed to have larger gains against the greenback.
Yield on the 10-year government bond ended at 5.765% as compared to Tuesday's close of 5.773%.
Earnings Reaction: Jyothy Labs Q1FY21
- Revenue up 4% to Rs 428.7 crore
- Net profit up 39% to Rs 50.1 crore
- Ebitda up 20% to Rs 78.3 crore
- Ebitda margin at 18.3% from 15.9%
- Fabric Care business revenue down 24% to Rs 142.2 crore
- Dishwashing business revenue up 17% to Rs 156.6 crore
- Household Insecticides business revenue more than doubles to Rs 63.6 crore
- Personal Care business revenue flat at Rs 60 crore
- Volume growth during the quarter at 6.1%
- All numbers are standalone and compared on a year-on-year basis
Shares ended 7% higher at Rs 140.4 - the highest level in six months. The stock rose for the fourth straight day.
Active Stock Options
- Reliance Industries 2,200 Call: Premium down 3.3% to Rs 78.1. The contract has added 5 lakh shares in Open Interest.
- Axis Bank's 450 Call: Premium up 14.7% to Rs 16.7. The contract has added 3,600 shares in Open Interest.
- Maruti Suzuki's 6,500 Call: Premium up 42.5% to Rs 217.9. The contract has shed 26,700 shares in Open Interest.
Stock Reaction: Steel Authority of India
The company on Tuesday said that its total sales in the month of July grew 50% compared to last year to 15.83 lakh tonnes, PTI reports.
The state-run company's domestic sales grew 29% from last year to 12.73 lakh tonnes while exports grew more than three times to 3.1 lakh tonnes compared to last year.
The consequent improvement in cash collection despite lower prices compared to last year, coupled with stringent financial measures allowed the company to reduce its cumulative borrowings to below Rs 50,000 crore.
Shares gained as much as 8.1% to Rs 37.40. The stock is up for the third straight day and is the top performer on the Nifty Midcap index.
Earnings Reaction: Gujarat Gas Q1FY21
- Revenue down 59.4% to Rs 1,083 crore
- Net profit down 76% to Rs 58.7 crore
- Ebitda down 56.5% to Rs 185.8 crore
- Ebitda margin at 17.2% from 16%
- Total sales volume during the quarter at 4.14 mmscmd.
- Commercialised 13 new CNG stations during the quarter
- Total volumes down 58% to 377 mmscm
- Gas sales volumes have shown robust recovery post the lockdown
- All numbers are standalone and compared on a quarter-on-quarter basis
Brokerage firm Macquarie has maintained its outperform rating on the stock with a price target of Rs 330. It believes that a benign gas price environment and volume normalisation may lead to a further increase in margins.
Shares fell as much as 3.8% to Rs 297.7, snapping a four-day gaining streak.
Second Day Of Gains For The Auto Index
European Markets Open With Gains
Benchmark indices across Europe have opened higher, led by energy and commodity stocks.
The Stoxx 600 has opened 0.5% higher with all sectors trading with gains. Real Estate, retail, oil & gas are among the leading gainers. Healthcare and auto stocks are underperforming.
Asian markets have ended on a mixed note while futures on the Dow Jones are trading higher by 120 points.
Brent crude trades 0.7% higher at $44.75 per barrel while Gold trades at a record high, up 0.6% at $2,031/Oz.
Let's take a look at how European benchmarks have opened:
- Euro Stoxx 50 up 0.7% at 3,277
- DAX up 0.6% at 12,673
- CAC up 0.7% at 4,924
- FTSE 100 up 0.8% at 6,080
- IBEX 35 up 1% at 7,089
How Are The Sectoral Indices Faring
Earnings Reaction: Godrej Properties Q1FY21
- Revenue down 89% to Rs 72.3 crore
- Net loss of Rs 20.2 crore from net profit of Rs 89.9 crore
- Ebitda loss of Rs 53.4 crore from Ebitda gain of Rs 123.8 crore
- Other income up 58% to Rs 123.3 crore
- All numbers are consolidated and compared on a year-on-year basis
- Limited construction during the quarter due to Covid-19
- No new project received revenue recognition
- Cash collections which depend on construction milestones also impacted
- Total booking up 71% at Rs 1,531 crore
- Area sold up 86% at 25,12,888 square feet
Shares ended 3% lower at Rs 903, post the announcement.
Buzzing Stock: Hatsun Agro Products
- Trades at the highest level since April 2019
- Gains as much as 6.1% to Rs 750.3
- Up for the fifth straight day
- Longest winning streak since March 2019
- Has gained 15% over the last five trading sessions
- Today's volumes are nearly nine times higher than its 20-day average
- Stock trades in overbought territory with Relative Strength Index (RSI) at 74
- The stock has doubled from its 52-week low of Rs 372.8 on March 24, 2020
- Two out of the three analysts tracking the stock have a buy recommendation; 0 sell calls
- The stock trades 12.5% higher than its 12-month consensus price target of Rs 650, implying a negative return potential
Earnings Reaction: Cadila Healthcare Q1FY21
- Revenue up 4% to Rs 3,639 crore
- Net profit up 50% to Rs 454 crore
- Ebitda up 24% to Rs 814.5 crore
- Ebitda margin at 22.4% from 18.8%
- Cost of raw materials up 18% to Rs 852 crore
- Lower finance costs offset higher cost of raw materials
- Pharmaceutical division revenue up 8% to Rs 3,102 crore
- Consumer products division revenue down 13% to Rs 537 crore
- U.S. sales up 19% to Rs 1,623 crore
- Rest of the World business up 8% to Rs 238 crore
- All numbers are consolidated and compared on a year-on-year basis
Shares give up all the gains to trade little changed at Rs 403.9, post the announcement.
Markets At Noon
- Benchmark indices off the day's high
- Nifty down 0.24% at 11,070
- Sensex down 0.3% at 37,579
- Nifty Bank up 0.1% at 21,518
- Nifty Midcap index up 0.7%
- Nifty Smallcap index up 0.75%
- India Volatility index down 1.54% to 23.44
- Nifty FMCG turns negative; down 0.3%
- Nifty Metal off day's high but remains top sectoral gainer; up 3%
- Nifty Auto is the other sectoral gainer; up 1.4%
- Hindalco remains the top Nifty gainer; up 6.4%
- HDFC Bank is the top Nifty laggard; down 1.6%
- 1,139 stocks on the NSE trade with gains while 592 decline
Earnings Reaction: Astral Poly Technik Q1FY21
- Revenue down 33% to Rs 403.9 crore
- Net profit down 57.7% to Rs 19.9 crore
- Ebitda down 41.7% to Rs 54.3 crore
- Ebitda margin at 13.4% from 15.3%
- Plastic business revenue down 32% to Rs 309.3 crore
- Adhesives business revenue 37% to Rs 94.6 crore
- Overall sales down 31% to 21,784 MT
- Recovered more than 91% sales in adhesive and pipe business from May to July
- Net debt free as on June 30 after repaying loans worth Rs 28.9 crore
- All numbers are consolidated and compared on a year-on-year basis
Shares gained as much as 1.6% to Rs 959 and are up for the second straight day.
Brokerage Reaction: Varun Beverages
Shares of the beverage producer and distributor rose after brokerage firm CLSA maintained its buy rating on the stock and raised its price target citing growth prospects for the medium-term.
CLSA’s Rationale:
- Cost reductions restrict disruptions during seasonally important quarter
- Impact of lockdown on profitability may be lesser than expected due to strong focus on cost reduction, improving demand trends
- Continue to see multiple growth drivers beyond 2020
- Target multiple of 14 times CY22 is still below five-year average by 15%
- Realisations per case rose 9% due to higher mix of CSD and controlled trade promotions
- Capex for 2021 is likely to drop to 50% of depreciation
- See potential for higher asset turnover, market share gains in its newly acquired territories, margin and RoCE expansion
CLSA has increased its price target on the stock to Rs 870 from the earlier Rs 745.
Shares trade near the day's high, gaining as much as 4.2% to Rs 746.2. The stock trades at a five-month high and is up for the second straight day.
Stock Reaction: Lupin
The drugmaker announced the launch of its Favipiravir in India under the brand name 'Covihalt.'
The drug will be used in the treatment of patients with mild to moderate Covid-19.
Favipiravir has received authorisation from the Drug Controller General of India for emergency use.
The drug is available as 200 mg tablets in a 10-tablet strip and is priced at Rs 49 per tablet, as per the exchange filing.
“We believe that we can leverage our expertise in managing widespread community diseases like TB to proactively reach patients across India and ensure access to Covihalt through our strong distribution network and field force,” the company said in a statement.
Shares gained as much as 1.5% to Rs 954.6. The stock is trading at the highest level since September 2018. It is also up for the sixth straight day, which is the longest gaining streak since October 2019.
Metal Index Up In Seven Out Of The Last Eight Sessions
Earnings Reaction: Sun Pharma Advanced Research Company Q1FY21
- Revenue at Rs 185.45 crore from Rs 17.32 crore
- Net profit of Rs 56.7 crore from net loss of Rs 94.2 crore
- Ebitda gain of Rs 60.8 from Ebitda loss of Rs 95.1 crore
As on June 30, the company’s current liabilities exceed current assets and it is in the process of raising funds for its operations.
The company also received a financial support letter from its parent Sun Pharma which is valid till the time the company is able to raise funds from external sources.
Shares gained as much as 14.4% to Rs 200. The stock is trading at the highest level in six months.
Stock Reaction: Cadila Healthcare
The drugmaker has reported that the doses of the vaccine administered to healthy volunteers in the first phase of clinical trial has been well tolerated.
The company said that Zydus will commence Phase-II of the clinical trial on August, the exchange filing said.
The vaccine was able to elicit high level of neutralising antibodies in animal studies, the company said.
The company also said that the DNA vaccine platform can be rapidly used to modify the vaccine in a couple of weeks in case the virus mutates, to ensure that the vaccine still elicits protection.
Shares surged to the day's high, gaining as much as 1.9% to Rs 411.3. The stock is up for the seventh straight day.
July Services PMI At 37.2
India's composite Purchasing Managers' Index for the services sector fell to 37.2 in the month of July as compared to 37.8 in June.
The figure during the corresponding period last year stood at 53.9. This is the fourth straight month of contraction for the Index.
New Orders remained unchanged at 37.8 while employment showed the lowest reading since the series began.
Markit India Services Business Activity index stood at 34.2 in July as compared to 33.7 in June.
Stock Reaction: Info Edge India
The company launched its QIP issue on Tuesday, at a floor price of Rs 3,177.18 per share. The floor price is a 0.3% discount to Tuesday's closing price.
As per the termsheet accessed by Bloomberg, the company is offering 6.2 million shares in the QIP.
The company at its discretion may offer a 55 discount on the floor price, as per SEBI regulations.
The proceeds will be used to augment long-term cash resources, meet funding requirements of business activities and for general corporate purposes, as per the termsheet.
JPMorgan, Goldman Sachs, Credit Suisse and IIFL are arranging the deal.
Shares rose as much as 7.3% - the most in four months, to Rs 3,420. The stock is up for the second straight day and is trading at an all-time high.
Earnings Reaction: PI Industries Q1FY21
- Revenue up 40.6% to Rs 1,060.1 crore
- Net profit up 43.2% to Rs 145.5 crore
- Ebitda up 50.3% to Rs 229.2 crore
- Ebitda margin at 21.6% from 20.2%
- Domestic revenue up 76% to Rs 446 crore
- Exports up 23% to Rs 614 crore
- Domestic and export supplies have picked up pace
- Contribution from Isagro further enhanced to nearly 14%
- 280 basis points drop in gross margins due to change in business mix
- Moved back to surplus cash position of Rs 98 crore as on June 30, 2020
- Will use proceeds from the QIP for strategic growth initiatives.
- Confident of 20%+ growth in FY21 assuming gradual normalisation of Covid-19
- All numbers are consolidated and compared on a year-on-year basis
Shares gained as much as 7.1% to Rs 1,966. This was the biggest single-day gain for the stock in four months. The stock now trades at an all-time high.
Markets At 10:20 A.M.
- Benchmark indices at the day's high
- Nifty up 1.1% at 11,220
- Sensex up 1.1% at 38,118
- Nifty Bank up 2% at 21,917
- Nifty Midcap index up 1.1%
- Nifty Smallcap index up 1.2%
- India Volatility Index down 1.6% to 23.43
- All sectoral indices trade with gains
- Nifty I.T. and Nifty Metal gain close to 2% each
- Nifty Media, Nifty Auto, Nifty PSU Bank gain between 1-1.5% each
- Hindalco is the top Nifty gainer; up 3.4%
- 42 out of the 50 Nifty constituents trade with gains
- Power Grid is the top Nifty laggard; down 1%
- 1,276 stocks on the NSE trade with gains while 402 decline
Stock Reaction: Parag Milk Foods
The company has informed the exchanges that the promoters have released a further 27 lakh pledged shares after repaying debt.
Promoters have repaid Rs 58.09 crore of debt so far, the company said in an exchange filing.
The company's current outstanding debt is now Rs 5.91 crore, the statement said.
Shares gained as much as 2.4% to Rs 90.30, post the announcement. The stock is up for the third straight day.
Money Market Update
The rupee has opened with gains after ending lower for the second straight day on Tuesday. little changed in today's session
The currency opened at 74.93 against the U.S. Dollar as compared to Tuesday's close of 75.04.
Within the bond markets today, traders will be watching out for the sale of treasury bills worth Rs 35,000 crore.
Focus is now on the RBI Monetary Policy. JPMorgan's Jahangir Aziz said that the RBI needs to do a lot more in times of the pandemic.
Stock Reaction: Axis Bank
The Mumbai-based private lender launched a QIP issue on Tuesday to raise funds. The floor price for the same is set at Rs 442.19 per share, a 3% premium to Tuesday's closing price.
The deal size is $1.33 billion, including a base size of $1.06 billion and an additional option to upsize by an additional $267 million, the termsheet accessed by Bloomberg News indicated.
The lender plans to use the proceeds to enhance its capital adequacy for it growth strategy, to address risks from Covid-19 and for general corporate purposes.
The lender may offer a discount of as much as 5% as per SEBI regulations. The indicative price to Qualified Institutional Buyers is Rs 420.1 per share.
Shares rose as much as 3.5% to Rs 444. The stock has gained in three out of the last four sessions.
Coronavirus India Updates
- New cases and number of recoveries nearly on par
- 52,509 new cases reported over the last 24 hours
- Total confirmed cases now at 19,08,254
- Active cases at 5,86,244
- Patients cured / discharged / migrated at 12,82,215
- Death toll rises to 39,795
- 857 deaths reported over the last 24 hours
- 51,706 patients recovered over the last 24 hours
Earnings Reaction: Tata Consumer Products Q1FY21
- Revenue up 13.4% to Rs 2,173.9 crore
- Net profit up 88% to Rs 327.6 crore
- Ebitda up 37.6% to Rs 482.7 crore
- Ebitda margin at 17.8% from 14.7%
- Exceptional gain of Rs 63 crore this quarter due to conversion of a JV company into a wholly-owned subsidiary
- Indian Branded Tea business sees volume growth of 4%
- India food business sees volume growth of 8%
- International Beverages, excluding food services saw a volume growth of 27% in Coffee and 4% in Tea
- Upsurge in tea and coffee demand in international markets
- 60% of Starbucks stores are operational across India
- On track to realise initial merger synergy estimates of 2-3% of combined India branded revenues 18-24 months
- April sales significantly impacted followed by high double-digit growth in May and June
- All numbers are consolidated and compared on a year-on-year basis
Shares gained as much as 4.9% to Rs 471.8, before cooling off. The stock is up for the fourth straight day and is trading at an all-time high.
Contributors To Nifty's Gains
Opening Bell: Second Day Of Gains
Indian equity markets opened higher, extending Tuesday's gains after snapping a four-day losing streak.
The S&P BSE Sensex opened 0.54% higher at 37,892 while the NSE Nifty 50 index opened at 11,155 - higher by 0.55%.
All sectoral indices have opened with gains. The Nifty Bank has opened 1% higher while the Media, Metal and Pharma index are up over three-quarters of a percent each.
Broader markets have opened higher as well. The Midcap index has gained 0.8% at the start of trade while the smallcap index trades 0.7% higher.
Market breadth is in favour of the gainers. 1,220 stocks on the NSE opened with gains while 643 opened lower.
Latest On The Coronavirus
- Global cases cross 18.4 million
- Death toll rises to 7 lakh
- Victoria in Australia reports 725 new cases in the last 24 hours
- World Health Organisation urges caution against vaccine developed by Russia
- Tokyo Olympics to go ahead in 2021 even without resolution of Covid-19, OC chief told Financial Times
- New Zealand warned to brace for return of Covid-19
- U.S. cases rise 1.1%; death toll rises to 1,56,133
- California reports 4,526 new cases - the lowest since June
- Arizona, Florida too report fewer cases
- Cases in Netherlands nearly double last week
Top Reads On Bloombergquint.com
How Did The Fund Flows Fare On Tuesday
Key Stocks In Focus
- Axis Bank: Launches QIP issue at Rs 442.19 per share, a 3% premium to Tuesday's closing price. The lender may offer a discount of not more than 5% on the floor price as per SEBI regulations. The deal size is worth $1.33 billion, including a base size of $1.06 billion and an option to upsize by an additional $267 million as per the terms accessed by Bloomberg News. The board will meet on August 10 to consider the issue price.
- SAIL: Bloomberg News reports that July steel sales were up 50% at 1.58 million tonnes. The company has reduced its borrowings below Rs 50,000 crore due to better cash collections despite lower prices compared to last year, along with stringent financial measures.
- Info Edge: Launched a QIP issue at Rs 3,177.18 per share - a 0.3% discount to Tuesday's closing price. The board will meet on August 7 to consider the issue price and other details.
- Sun Pharma Advanced Research Company: As on June 30, the company’s current liabilities exceed current assets and it is in the process of raising funds for its operations. The company also received a financial support letter from its parent Sun Pharma which is valid till the time the company is able to raise funds from external sources.
- Dixon Technologies: Management stated in a concall that due to the announcement of moving to the import of television sets on restricted list, the company will further expand its capacity for LED TV’s to 5.5 million units (earlier expansion plan was for 4.4 million units) during the next 6 months. The company has also applied for PLI schemes for mobile manufacturing to the government.
- SH Kelkar: Has initiated capex of 1.5 million Euros to enhance production capacity of its latest acquisition - Creative Flavours and Fragrance in Italy. The company had completed its acquisition on July 28.
- Non-Nifty Earnings Today: Adani Gas, Apollo Tyres, Cadila Healthcare, Canara Bank, DLF, Godrej Properties, INOX Leisure, JK Lakshmi Cement, Jyothy Labs, Strides Pharma.
To know about results reported after market hours, brokerage updates and more, click here.
Your Trade Setup For The Day
A Check On Indian ADRs
U.S. Markets On Tuesday
- Benchmark indices end higher on Tuesday
- S&P 500 ends 0.4% higher while the Dow Jones rose 0.6%
- Financial shares underperformed in trade
- Bloomberg Dollar Spot index fell 0.2%
- Yield on the 10-year treasuries fell to 0.51% - the lowest since March
- West Texas Intermediate crude rose 1.5% to $41.61 per barrel
Get your daily fix of the global markets here.
Stock-Specific Action In Focus
Good Morning!
Indian equity markets rebound from their worst losing streak in more than four months, led by heavyweights Reliance Industries Ltd. and HDFC Bank Ltd.
The two stocks contributed 80% to the Nifty 50 Index's 200-point surge on Tuesday.
HDFC Bank is preparing for a leadership transition after 26 years. Aditya Puri, who has been its chief executive officer since inception, will step down in October and hand over to Sashidhar Jagdishan, who has been with the lender for the past 25 years.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.2% to 11,092 as of 7:50 a.m. on Wednesday.
Earnings will remain in focus. Some key non-Nifty 50 companies such as Adani Gas, Apollo Tyres, Cadila Healthcare, Canara Bank, DLF, Godrej Properties, Inox Leisure, JK Lakshmi Cement are set to announce their results for the quarter ended June on Wednesday.
Tata Consumer Products, PI Industries, Astral Poly, Unichem Laboratories, MRPL that reported earnings late Tuesday will also be watched out for.
Asian markets are mixed this morning. Benchmarks in Japan, Australia and China are declining, while those in South Korea are advancing.
Futures on the Dow Jones are flat. The index ended 0.6% higher on Tuesday.
Gold surged to another record high, crossing the $2,000/Oz-mark. Goldman Sachs has predicted the rally to continue till levels of $2,300.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
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