KEY HIGHLIGHTS
Closing Bell: Heavyweights Drag The Market
Indian equity markets ended the July F&O series on a weak note, ending the day lower by nearly 1%.
The S&P BSE Sensex ended 0.88% lower at 37,736 while the NSE Nifty 50 index ended 0.9% lower at 11,102.
Both benchmark indices ended the July F&O series with gains. This is the first instance this year that the Sensex and Nifty have had back to back gains in a monthly F&O series.
Most sectoral indices ended lower. The Nifty Pharma was the outperformer for the second straight day, ending 3.1% higher. Gains today were again led by Dr. Reddy's Laboratories, which ended at an all-time high with gains of 4.6%.
The I.T. index was the other sectoral gainer, ending 0.7% higher.
The underperformers in today's trade included the Nifty Bank and the PSU bank index, both ending lower by 2%.
The media index was the top laggard, ending with losses of 2.3%. The Metal and FMCG index saw losses of 1%.
Broader markets too saw declines. The Midcap index declined 0.8% while the smallcap index fell 1.1%.
The India Volatility Index ended 3.2% higher at 24.9.
Market breadth ended in favour of the laggards. 1,141 stocks on the NSE ended with gains while 689 posted gains.
How Did The Markets Fare This Series
Earnings Reaction: Cholamandalam Investment & Financial Holdings
- Interest Income up 8% to Rs 2,071 crore
- Revenue up 4% to Rs 2,125 crore
- Net profit up 37% to Rs 431.3 crore
- Ebitda up 9% to Rs 1,737.6 crore
- Ebitda margin at 81.8% from 78%
- Vehicle Finance revenue up 4% to Rs 1,623 crore
- Loan Against Property revenue flat at Rs 314.1 crore
- Home Loans revenue down 13% to Rs 87.8 crore
- Total AUM up 13% to Rs 70,826 crore
- Disbursements down 58% to Rs 8,572 crore
- Gross Stage 3 assets at 3.3% from 3.8% last quarter
- Has not availed any moratorium so far on its borrowings
- All numbers are consolidated and compared on a year-on-year basis
Shares fell as much as 5.3% to Rs 209.55, post the announcement.
Earnings Reaction: Laurus Labs Q1FY21
- Revenue up 77% to Rs 974.3 crore
- Net profit at Rs 171.8 crore from Rs 15.1 crore
- Ebitda more than quadruples to Rs 278.2 crore
- Ebitda margin at 28.6% from 15.1%
- Generic API division sees growth of 40%
- Anti-Viral segment sees growth of 19%
- Generic FDF revenue up more than four times led by higher volumes in North America and Europe
- Custom Synthesis division sees growth of 37%
- Results not comparable due to incorporation of various wholly-owned subsidiaries
- To split one equity share of Rs 10 each into five equity shares of Rs 2 each
- Record date for the stock split set at September 30, 2020
- All numbers are consolidated and compared on a year-on-year basis
Shares surged to the day's high, gaining as much as 4.4% to Rs 797, post the announcement. The stock is trading at an all-time high.
Earnings Reaction: Dabur India Q1FY21
- Revenue down 13% to Rs 1,979 crore
- Net profit down 6% to Rs 341.7 crore
- Ebitda down 9% to Rs 415.5 crore
- Ebitda margin at 21% from 20.1%
- Advertising and Promotional expenses down 28% to Rs 145.6 crore
- Consumer care business revenue down 6% to Rs 1,734 crore
- Food business revenue down 41% to Rs 217.3 crore
- Retail business revenue down 94% to Rs 2 crore
- Volume de-growth of 9.7% during the quarter
- All numbers are consolidated and compared on a year-on-year basis
Shares ended higher for the third straight day, up 0.6% at Rs 492.6.
Only Two Gainers On The Nifty Bank
Earnings Reaction: SRF Q1FY21
- Revenue down 12% to Rs 1,545.1 crore
- Net profit down 6% to Rs 177 crore
- Ebitda up 8% to Rs 372.1 crore
- Ebitda margin at 24.1% from 19.5%
- Lower finance costs, other expenses and power & fuel expenses contribute to margin expansion
- Technical Textiles Business revenue down 63% to Rs 140.4 crore
- Chemical business revenue up 15% to Rs 705.2 crore
- Packaging Film business revenue down 3% to Rs 677.3 crore
- Declares dividend of Rs 5 per share
- All numbers are consolidated and compared on a year-on-year basis
Shares fell as much as 3.2% to Rs 3,808, post the announcement. The stock has snapped a two-day gaining streak.
Earnings Reaction: Piramal Enterprises Q1FY21
- Revenue down 8% to Rs 2,937.4
- Net profit up 10% to Rs 495.6 crore
- Ebitda down 13% to Rs 1,795.6 crore
- Ebitda margin at 61.1% from 64.5%
- Deferred tax reversal of Rs 108.6 crore this quarter as compared to deferred tax gain of 93 crore in the base quarter
- Pharmaceutical segment revenue down 11% to Rs 1,037.8 crore
- Financial Services revenue down 6% to Rs 1,899.5 crore
- Net debt reduction of Rs 13,902 crore in one year
- Net debt-to-equity now at 1.2 times from 1.9 times
- Gross NPA of financial services business at 2.5%
- India consumer products revenue for the pharma business down 4% to Rs 104 crore
- All numbers are consolidated and compared on a year-on-year basis
Shares ended lower for the second straight day, down 3.75% at Rs 1,370. The stock has declined in three out of the last four trading sessions.
Earnings Reaction: Karur Vysya Bank Q1FY21
- Net Interest Income down 4% to Rs 561.9 crore
- Net profit up 45% to Rs 105.5 crore
- PPoP up 6% to Rs 473.9 crore
- Gross NPA at 8.34% from 8.68% last quarter
- Net NPA at 3.44% from 3.92% last quarter
- Provisions down 21% from the previous quarter to Rs 337.6 crore
- Provisions flat on a year-on-year basis
- Covid-19 provisions this quarter at Rs 31.1 crore
- Aggregate provisions for Covid-19 at Rs 120 crore
- Provision Coverage Ratio at 72.7%
Shares gained as much as 4.2% to Rs 32.25, post the announcement. The stock is up for the fourth straight day.
Earnings Reaction: HDFC Q1FY21
- Net profit down 4.7% to Rs 3,051.5 crore
- Net Interest Income up 10% to Rs 3,392 crore
- Gross NPA at 1.87% from 1.99%
- Net Interest Margin at 3.1% from 3.3%
- Received profit on sale of investments at Rs 894 crore
- Total provisions at Rs 1,199 crore including Covid-19 related provisions worth Rs 404 crore
- Total AUMs up 12% to Rs 5.31 lakh crore
- Individual loan book up 11% to Rs 65,695 crore
- 16.6% of individual loans under moratorium and 22.4% of total loans under moratorium
- All numbers are standalone and compared on a year-on-year basis
Shares ended lower for the second straight day, down 3.55% at Rs 1,810.
Money Market Update
The currency pared Wednesday's modest gains to end flat in today's session, concluding yet another rangebound session of trade.
The rupee ended at 74.85 against the U.S. Dollar as compared to Wednesday's gains of 74.80.
The currency made an intraday low of 74.87 and a high of 74.80, indicative of the narrow range.
Four other currencies managed to outperform the rupee in today's session.
Yield on the 10-year government bond ended at 5.825% as compared to Wednesday's close of 5.835%.
Earnings Reaction: Ajanta Pharma Q1FY21
- Revenue up 9% to Rs 668.2 crore
- Net profit up 29% to Rs 147.8 crore
- Ebitda up 32% to Rs 223.2 crore
- Ebitda margin at 33.4% from 27.5%
- Export sales up 19% at Rs 483 crore
- Emerging Market branded generic sales up 23% at Rs 271 crore
- U.S. generic sales up 46% at Rs 149 crore
- Africa institution sales down 23% to Rs 62 crore
- India sales down 10% to Rs 174 crore
- R&D expenses during the quarter at Rs 31 crore
- All numbers are consolidated and compared on a year-on-year basis
Shares gained as much as 3.4% to Rs 1,540.5, post the announcement.
Active Stock Options (August Expiry)
- Reliance Industries' 2,140 Call: Premium up 2% to Rs 104.5. The contract has added 75,750 stocks in Open Interest.
- Bharti Airtel's 580 Call: Premium down 34% to Rs 15.5. The contract has added 10.5 lakh shares in Open Interest.
- Manappuram Finance's 170 Call: Premium down 61.3% to Rs 8.7. The contract has added 7.8 lakh shares in Open Interest.
Earnings Reaction: Chambal Fertilisers
- Revenue up 13% to Rs 3,218.7 crore
- Net profit up 80% to Rs 298.8 crore
- Ebitda up 32% to Rs 590.2 crore
- Ebitda margin at 18.3% from 15.6%
- Lower finance costs and other expenses contribute to margin expansion
- Debt-equity ratio at 2.54 times
- Lower gas prices and lower cost of P&K Fertilisers offset higher sales in Urea and P&K.
- Total subsidy outstanding at Rs 5,391.4 crore
- Total borrowings as on June 30, 2020 at Rs 8,926.7 crore
- All numbers are consolidated and compared on a year-on-year basis
Shares gave up gains of as much as 5.2% to fall as much as 4.6% to Rs 157. The stock has snapped a three-day gaining streak.
Nifty Media Index Extends Losses
Earnings Reaction: CEAT Q1FY21
- Revenue down 36.1% to Rs 1,120.2 crore
- Net loss of Rs 34.8 crore from net profit of Rs 82.6 crore
- Ebitda down 39% to Rs 102 crore
- Ebitda margin at 9.1% from 9.5%
- Exceptional loss of Rs 21.8 crore due to VRS payments and Covid-19 related expenses
- Gross margin expanded to 40.3% from 39.5%
- Debt-equity at 0.69 times from 0.57 times
- Raw material costs down 37% to Rs 669.3 crore
- All numbers are consolidated and compared on a year-on-year basis
Shares of the company fell as much as 2.4% to Rs 847, before recovering. The stock is down for the second straight day.
European Markets Open Flat
Markets in Europe have opened with a negative bias after mixed cues from earnings and concerns over a resurgence of Covid-19.
The Stoxx 600 has opened 0.4% lower. Banks and auto stocks are the major laggards. F&B stocks are outperforming.
Most Asian markets have ended with losses while futures on the Dow Jones are trading lower by 150 points.
Brent crude trades 0.8% lower at $43.4 per barrel while gold trades 1% lower at $1,953.6/Oz.
Let's take a look at how benchmark indices across Europe have opened:
- Euro Stoxx 50 down 0.1% at 3,296
- DAX down 0.5% at 12,760
- CAC down 0.2% at 4,949
- FTSE 100 unchanged at 6,131
- IBEX 35 down 0.3% at 7,182
How Are The Sectoral Indices Faring
Buzzing Stock: Manappuram Finance
- Worst performing stock on the Nifty Midcap index
- Falls as much as 8.7% to Rs 166.1
- Biggest single-day fall in three months
- Down for the third straight day
- Today's volumes are triple as compared to its 20-day average
- 50-Day Moving Average at 151 and 200-Day Moving Average at 150
- Trades 14% below its 52-week high of Rs 194.8 on January 29, 2020
- Active options for the stock are 170 August Put and 180 August Call
- 11 out of the 14 analysts tracking the stock have buy recommendationns; 0 sell calls
- Return potential of the stock as per Bloomberg data is 12.2%
Stock Reaction: Ramco Systems
The global aviation software provider has informed the exchanges that it has gone life at Air Caledonie - the first domestic airline of New Caledonia.
A modern aviation ERP - the Aviation M&E MRO Suite V5.8, will enable automation of maintenance, logistics, planning, engineering and shop floor activities, it said in an exchange filing.
This is the company's first implementation in New Caledonia.
We are confident that Ramco’s rich functionalities and deep domain expertise, bundled with next-gen technology will help Air Calédonie’s automate operations, enabling efficient aircraft utilization.Virender Aggarwal, CEO, Ramco Systems
Shares gained as much as 4% to Rs 124.9, post the announcement. The stock is up for the sixth straight day, the longest winning streak since November 2018.
Earnings Reaction: Hester Biosciences
- Revenue down 11% to Rs 39.9 crore
- Net profit down 32% to Rs 5.7 crore
- Ebitda down 32% to Rs 11.9 crore
- Ebitda margin at 29.8% from 39.1%
- Poultry Healthcare revenue down 11% to Rs 29.8 crore
- Animal Healthcare revenue flat at Rs 7.9 crore
- All numbers are consolidated and compared on a year-on-year basis
Management Commentary:
- Sales progressed with an upward trend in May and June.
- Gross margins impacted due to the changed product mix.
- Low necessary products and vaccines were sold more than high products.
- Export targets were met with most of the sales taking place in June.
- Trend seems positive for domestic and international sales since the start of Q2
- Hope to commence animal trials for Covid-19 vaccine by the end of the calendar year.
Shares recovered from the day's low to gain as much as 3.5% to Rs 1,371, post the announcement. The stock is up for the third straight day.
Markets At Noon
- Benchmark indices remain near the day's high
- Nifty up 0.6% at 11,269
- Sensex up 0.6% at 38,302
- Nifty Bank up 0.5% at 22,178
- Nifty Midcap index up 0.2%
- Nifty Smallcap index up 0.1%
- India Volatility Index down 2% to 23.61
- Nifty Pharma remains the top sectoral gainer; up 2.8%
- Nifty I.T. is the other sectoral gainer; up 1.5%
- Nifty Media (down 1.1%) and Nifty Metal (down 0.25%) are the only sectoral laggards
- Dr Reddy's Laboratories remains the top Nifty gainer; up 5.2% and at an all-time high
- BPCL remains the top Nifty laggard; down 4.3%
- 1,012 stocks on the NSE trade with gains while 722 stocks decline
All Stocks On The I.T. Index Trade With Gains
F&O Snapshot: Active Options Contracts
- Nifty August futures add 18% and 13.8 lakh shares in Open Interest.
- Nifty Bank August futures add 16% and 1.35 lakh shares in Open Interest.
Nifty: August 6 Expiry
- 11,300 Call: Premium up 10.2% to Rs 112.4. The contract has added 2.9 lakh shares in Open Interest.
- 11,200 Put: Premium down 30% to Rs 88.9. The contract has added 3.32 lakh shares in Open Interest.
- 11,400 Call: Premium up 6% to Rs 69.1. The contract has added 2.4 lakh shares in Open Interest.
Nifty Bank: August 6 Expiry
- 22,000 Put: Premium down 21% to Rs 347.5. The contract has added 44,425 shares in Open Interest.
- 22,500 Call: Premium flat at Rs 316. The contract has added 57,775 shares in Open Interest.
- 22,200 Call: Premium up 2.4% to Rs 452.8. The contract has added 38,475 shares in Open Interest.
Earnings Reaction: JK Paper
- Revenue down 36% to Rs 469.2 crore
- Net profit down 96% to Rs 3.5 crore
- Ebitda down 65% to Rs 62.5 crore
- Ebitda margin at 13.3% from 24%
- Power, Fuel and Water expenses at Rs 65.6 crore
- Other expenses at 59.7 crore
- Paper and Board revenue down 37% to Rs 464 crore
- All numbers are consolidated and compared on a year-on-year basis
Shares fell as much as 5% to Rs 95. The stock is down in three out of the last four trading sessions.
Stocks Reaction: TCS
The company informed the exchanges that it has expanded its partnership with the Vaillant Group to streamline its business processes and implement those o a single, digital enterprise process platform.
The deal will help the Vaillant Group speed up decision-making and support its global market expansion plans, the company said in an exchange filing.
The new digital core will be foundational to re-imagining their business model and achieving their vision of becoming a digital-first organization.Santu Mandal, Head - Manufacturinng Business, TCS Germany
Shares gained as much as 3.6% to Rs 2,358, post the announcement. The stock is up in three out of the last four trading sessions.
Earnings Reaction: Indian Energy Exchange
- Net profit up 6.3% to Rs 42.1 crore
- Revenue up 16.4% to Rs 81.1 crore
- Ebitda up 4.8% to Rs 61.3 crore
- Ebitda margin at 81.7% from 89.6%
- Electricity volume up 14.5% to Rs 14,878 MU
- REC volume down 41.7% to 6.97 lakh REC
- Exchange power prices down 26% year-on-year yields significant savings for distribution utilities and industries
- Committed to invest around Rs 15 crore in technology and process innovations
- All numbers are consolidated and compared on a year-on-year basis
Shares fell as much as 2% to Rs 177.5, post the announcement.
Earnings Reaction: Phoenix Mills
- Revenue down 78.1% to Rs 134.7 crore
- Net loss narrows to Rs 42.4 crore from Rs 130.4 crore
- Ebitda down 76% to Rs 70.2 crore
- Ebitda margin at 52.1% from 47.6%
- Lower electricity expenses and employee costs impact margins
- No revenue recorded for the residential segment
- Retail segment revenue down 70% to Rs 88.5 crore
- Commercial segment revenue up 5% to Rs 38.2 crore
- Hospitality and other segment revenue down 90% to Rs 8 crore
- Average spend per footfall grew 76% month-on-month to Rs 2,583 in July 2020
- All numbers are consolidated and compared on a year-on-year basis
Shares gained as much as 5.6% to Rs 628.1, up for the second straight day.
DRL, Torrent Pharma Lead Gains On The Pharma Index
SpiceJet CFO Says No Plans To Raise Funds
India's budget carrier SpiceJet is looking for ways to cut costs, including potentially reducing its workforce, CFO Kiran Koteshwar told Bloomberg News in an interview.
Koteshwar said that there is no mandate from the company's board to seek additional funds from the market.
The carrier is confident of managing the current crisis with the existing cash, Koteshwar said.
As of March 31, SpiceJet had liabilities of Rs 6,650 crore along with long-term liabilities of Rs 7,900 crore.
SpiceJet reported a net loss of Rs 807 crore for the quarter ended March 31.
Shares are off the day's low after falling as much as 3.5% to Rs 46.75.
Earnings Reaction: InterGlobe Aviation
- Revenue down 91.9% to Rs 766.7 crore
- Net loss of Rs 2,844.3 crore from net profit of Rs 1,203.1 crore
- Ebitdar loss of Rs 1,537.7 crore from Ebitdar profit of Rs 2,656.5 crore
- Biggest net loss since listing on weak demand, suspension of flights due to Covid-19
- Load factor at 61.3% from 88.9%
- Yield up 11.1% at Rs 4.53
- RASK up 2.2% at Rs 4.19
- Total debt up 27.8% at Rs 2,35,516 crore
- All numbers are standalone and compared on a year-on-year basis
Brokerage firm UBS has maintained its buy rating on the stock with a price target of Rs 1,500. It is expecting the airline to gain further market share due to its low-cost position, strong liquidity and higher customer satisfaction.
Shares gained as much as 3% at Rs 937, snapping a two-day losing streak.
Buzzing Stock: IndiaMART InterMESH
- Rises to an four-time high
- Gains as much as 8.5% to Rs 2,689
- Biggest single-day gain in four months
- Up for the second straight day
- Has gained in seven out of the last nine trading sessions
- Up 28% in the last nine trading sessions
- Today's volumes are nearly quadruple its 20-day average
- Shares trading in overbought territory with Relative Strength Index (RSI) at 70
- Is 8% away from its 52-week high of Rs 2,862.5
- Three out of the five analysts tracking the stock have a buy recommendation; 1 sell call
- The stock trades 2.8% above its 12-month consensus price target of Rs 2,556.2, implying a negative return potential
Markets At 10:10 A.M.
- Benchmark indices edge higher
- Nifty up 0.6% at 11,268
- Sensex up 0.6% at 38,304
- Nifty Bank up 0.45% at 22,175
- Nifty Midcap index up 0.4%
- Nifty Smallcap Index up 0.5%
- India Volatility Index down 2% to 23.61
- Nifty Media remains the only sectoral laggard; down 0.6%
- Nifty Pharma is the top sectoral gainer for the second straight day; up 2%
- Nifty I.T. up 1.5% while Nifty PSU Bank index gains 1%
- Dr Reddy's Laboratories is the top Nifty gainer; up 4%
- BPCL is the top Nifty laggard; down 4.8%
- 1,081 stocks on the NSE trade with gains while 560 decline
Money Market Update
The rupee has opened little changed after remaining in a narrow range through the week so far.
The currency opened at 74.82 against the U.S. Dollar as compared to Wednesday's close of 74.80.
Scotiabank is asking investors to buy the local currency as it is likely to benefit from bond inflows and a weak U.S. Dollar.
Yield on the 10-year government bond opened at 5.831% as compared to Wednesday's close of 5.85%.
Bond market traders today will assess the announcements from the U.S. Federal reserve.
The Fed kept interest rates near zero and has vowed to use all its tools to support an economic recovery from Covid-19.
Earnings Reaction: Mastek
- Revenue up 15% to Rs 386 crore
- Net profit up 19% to Rs 46.6 crore
- Ebit up 13% at Rs 56.7 crore
- Ebit margins at 14.7% from 14.9%
- Revenue from U.K. and Europe operations up 8% at Rs 251.9 crore
- Revenue from North America operations up 2% at Rs 66.1 crore
- Revenue from the Middle East more than doubles to Rs 54.6
- Added 48 new clients during this quarter
- 12-month order backlog at Rs 764.5 crore
- Repaid loans worth $6 million during the quarter
- Crossed $50 million revenue mark during the quarter
- Share of top 5 clients to revenue down to 34.5% from 35.8%
- All numbers are consolidated and compared on a quarter-on-quarter basis
Shares gained as much as 12.7% to Rs 560. The stock is trading at the highest level since September 2018.
Coronavirus India Updates
- India reports biggest single-day spike in new Covid-19 cases
- 52,123 cases reported over the last 24 hours
- Total confirmed cases now at 15,83,792
- Active cases at 5,28,242
- Number of patients cured / discharged / migrated crosses the 1 million mark
- 10,20,582 patients cured and discharged so far
- Death toll rises to 34,968
- 775 deaths reported in the last 24 hours
- 32,553 patients recovered over the last 24 hours
Stock Reaction: BPCL
The government has extended the last date for submitting Expressions of Interest for the oil refiner to September 30.
The Department of Investment and Public Asset Management (DIPAM) had earlier extended the due date for submitting the EoI to July 31.
On September 13, 2019, Bloomberg News had reported that the government intends to sell majority stake in BPCL, a news that was officially announced in November.
From levels of Rs 384 in September, the stock rose to levels of Rs 549, before correcting post the official announcement and during the market sell-off in March.
Shares fell as much as 4.9% to Rs 431.55 and are down for the second straight day. The stock is the top laggard on the Nifty 50 index.
Earnings Reaction: Bharti Airtel Q1FY21
- Revenue up 1% to Rs 23,938.7 crore
- Net loss widens to Rs 15,933.1 crore from net loss of Rs 5,237 crore
- Ebitda up 2% to Rs 10,407 crore
- Margins at 43.5% from 43%
- ARPU at Rs 157 from Rs 154
- Incremental provision of Rs 10,744.4 crore for AGR dues
- Higher revenue and Ebitda contribution from mobile business helps consolidated Ebitda
- Revenue from India mobile operations up 36% to Rs 17,589 crore
- Airtel Africa revenue down 5% to $851 million
- Net debt at Rs 1,16,541 crore from 1,18,859 crore
- All numbers are consolidated and compared on a quarter-on-quarter basis
Brokerage firms like CLSA and UBS have maintained their buy ratings on the stock with both having their price targets in excess of Rs 700.
CLSA expects the company's ARPU to rise to Rs 181 by FY22 while UBS expects the earnings momentum to accelerate going ahead.
Shares gained as much as 2.5% to Rs 580.4, before cooling off.
Opening Bell: A Sedate Start
Indian equity markets opened with gains on the expiry day of July's F&O contracts.
The S&P BSE Sensex opened 0.5% higher at 38,262 while the NSE Nifty 50 index opened at 11,254, up 0.46%.
Both Sensex and Nifty are up 9% so far for the July series.
Among the sectoral indices, the media index was the only sectoral laggard, opening with losses of 2.5%. The PSU Bank index was the top gainer; up 1% at the start of trade. All other sectoral indices gained between 0.5-1%.
Broader markets were flat at open. The midcap index gained 0.4% while the smallcap index gained 0.2%.
Market breadth was in favour of the gainers. 1,029 stocks on the NSE are trading with gains while 393 trade with losses.
Latest On The Coronavirus
- Global cases rise to 16.9 million
- Death toll at 6.65 lakh
- Japan lays out terms for return of foreign residents
- 713 cases reported in Australia's Victoria
- Hanoi halts big gatherings as more casesfound in Vietnam
- 18 new cases reported in South Korea
- 105 new cases reported in China - 96 from Xinjiang
- 5,752 new cases reported in Mexico with 485 deaths
- California, Texas and Florida report record daily deaths
- 69,074 new cases reported in Brazil - a daily record
- 1.9% rise in total cases in the U.S.
Top Reads On Bloombergquint.com
How Did The Fund Flows Fare On Wednesday
Key Stocks In Focus
- Bharti Airtel: Net loss widened for the June quarter as the company made further provisions for the AGR dues. Average Revenue Per User or ARPU, was the highest in 14 quarters. Revenue from the India Mobile Operations were up 36% from the previous quarter.
- InterGlobe Aviation: Reported its biggest net loss since listing owing to suspension of flights due to Covid-19. CEO Ronojoy Dutta said that while they remain bullish on the company's long-term prospects, the next few months are going to be 'tough.'
- TVS Motor: Reports net loss of Rs 139 crore for the June quarter. First net loss since Q4FY13.
- CEAT: Reports net loss of Rs 35 crore due to VRS Payments and Covid-19 related expenses. This was the first loss reported by the company since the first quarter of FY12.
- Covid-19 Impact On Eicher Motors: As on date, more than 85% of the dealers have begun operations. Demand for the company's motorcycle is expected to recover further in the upcoming quarters of FY21.
- Union Bank of India: Approves raising Rs 10,300 crore for FY21. The board approved raising Rs 6,800 crore in equity capital and to raise AT-1 and / or tier-2 bonds not exceeding Rs 9,400 crore.
- BPCL: Government extends last date for submission of Expression of Interest up to September 30. The Department of Investment and Public Asset Management (DIPAM) had earlier extended the due date for submitting the EoI to July 31.
- Covid-19 Impact On Shankara Building Products: Walk-in within retail stores has reduced as home construction plans have been deferred. Enterprise segment has been impacted by end-user demand. Channel segment continues to remain at lower threshold levels and processing business is operating at lower utilisation levels. Expect overall revenue for Q1FY21 to be 54-56% of last year's level.
- Mindspace Business Parks REIT IPO: Subscribed 13 times on Day 3. Institutional subscription at 10.65 times. Retail subscription at 15.83 times. Institutional category doesn’t include anchor portion. Issue has been closed.
- Nifty Earnings Today: HDFC, Reliance Industries
- Non-Nifty Earnings Today: Laurus Labs, Dabur, Ajanta Pharma, Cholamandalam, JM Financial, Karur Vysya Bank, Max Financial Services, SRF, Torrent Pharma
To know more about earnings 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 Wednesday
- Benchmark indices end with gains after Fed comments
- The S&P 500 ended 1.2% higher, extending its July rally
- Fed Chair Jerome Powell says path forward for the economy is extraordinarily uncertain
- Starbucks CEO Kevin Johnson said a key measure of sales turned positive in July.
- General Motors reported first quarterly loss since emerging from bankruptcy.
- Bloomberg Dollar Spot Index fell 0.3%
- Yield on the 10-year treasuries slipped two basis points to 0.56%
- West Texas Intermediate crude rose 0.6% to $41.29 per barrel.
Get your daily fix of the global markets here.
July Series Expiry Today
Good Morning!
The July futures and options series is set to expire on Thursday. During this, the Sensex and Nifty have gained 9% each so far, on course for their first F&O series gains this year.
That'd be the first such instance for the Sensex since November-December, and since October-November for the Nifty.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was flat at 11,233 as of 7:55 a.m. on Thursday.
Stocks such as Bharti Airtel, InterGlobe Aviation, CEAT and TVS Motor, among others, will remain in focus as they reported their June-quarter earnings after market hours on Wednesday.
Two Nifty 50 heavyweights — Reliance Industries and HDFC — are set to report their quarterly results on Thursday. Among non-Nifty 50 companies are Dabur, Ajanta Pharma, Cholamandalam, Torrent Pharma and Karur Vysya Bank, among others.
Across the globe, Asian markets are trading with modest gains after the Federal Reserve kept interest rates near zero. Markets in Hong Kong and Australia are advancing, while those in Japan have given up gains.
Treasuries are steady, gold has edged lower while futures on the Dow Jones are trading lower by 45 points.
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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