KEY HIGHLIGHTS
Closing Bell: A Session With Gains
Indian equity markets ended higher on Tuesday, tracking positive cues from Asia and led by an outperformance in Banking and Pharma stocks.
The S&P BSE Sensex ended 0.74% higher at 39,044 while the NSE Nifty 50 gained 0.7% at the close of trade to end at 11,521.
Banking stocks, which were responsible for the indices ending lower on Monday, outperformed the indices in today's session. The Nifty Bank ended with gains of 1.8% or 400 points.
Pharma stocks were the other outperformers in today's session. The index ended off the highest point of the day, but with gains of nearly 2%.
Most other sectoral indices ended flat in today's session. The realty index was the top laggard, ending with losses of 0.7%.
Broader markets outperformed the benchmarks for the second day running. The midcap index recovered from the day's low to end 1% higher while the smallcap index gained 1.5% as trading came to a close.
India Volatility Index fell 3.75% to 20.4.
Market breadth remained in favour of the gainers. 1,105 stocks on the NSE ended with gains while 713 stocks declined.
How Did The Sectoral Indices Fare
Stock Reaction: Radico Khaitan
The company has informed the exchanges that it has fully repaid all the loans against pledged shares of the company.
"Hence, all the shares held in promoters' account / companies are free from any encumbrance whatsoever," the company said in an exchange filing.
Shares are at the day's high, up as much as 8% to Rs 447.4, the highest level since September 2018.
Earnings Reaction: PVR Q1FY21
- Revenue down 98.6% to Rs 12.7 crore
- Net loss of Rs 225.6 crore from net profit of Rs 17.6 crore
- Ebitda loss of Rs 115.9 crore from Ebitda gain of Rs 278.6 crore
- Higher other income due to recognition of rent concessions worth Rs 29.8 crore as per IND-AS 116
- Invoked force majeure clause in various lease agreements for its cinema properties
- Deferred tax reversal of Rs 116 crore this quarter
- The company said in its post-earnings release that it has everything it needs to restart operations, including Covid-19 specific SOPs, customer engagement and sufficient liquidity.
- All numbers are consolidated and compared on a year-on-year basis
Shares fell as much as 4% to Rs 1,257.
Buzzing Stock: Trent
- Trades at the highest level in nearly seven months
- Gains as much as 8% to Rs 751
- Biggest single-day gain in nearly three months
- Up for the fifth straight day
- Longest winning streak since June 2020
- Has gained 18% in the last five trading sessions
- Today's volumes are more than double its 20-day average
- Stock in overbought territory with Relative Strength Index (RSI) at 80
- Trading 8% away from its 52-week high of Rs 804.7 on February 25, 2020
- 10 out of the 15 analysts tracking the stock have a buy recommendation; 2 sell calls
- The stock trades 23.3% higher than its 12-month consensus price target of Rs 575.1, implying a negative return potential
Indian Residential Real Estate Demand To Halve In FY21: CRISIL
CRISIL ratings expects demand for residential real estate in the country to drop by 50-70% in FY21, Bloomberg News reports.
The financial fallout due to Covid-19 is attributed to be one of the major reasons for the same, the rating agency wrote in a note.
CRISIL also expects a correction in real estate prices by 5-15%, the note said, adding that small-to-medium sized developers will face a nearly 200% rise in funding gap this financial year.
"Given the tight liquidity, some of these players will be vying for tie-ups with larger established names," the note said.
Active Stock Options
- Reliance Industries' 2,400 Call: Premium up 3.5% to Rs 29.55. The contract has added 66 shares in Open Interest.
- Infosys' 1,000 Call: Premium up 17% to Rs 15.9. The contract has added 287 shares in Open Interest.
- Dr Reddy's 4,500 Call: Premium up 58.5% to Rs 125. The contract has shed 309 shares in Open Interest.
Buzzing Stock: BSE
- Trading at the highest level since July 2019
- Gains as much as 8% to Rs 598
- Biggest single-day gain in three months
- Up for the second straight day
- Has gained 11% in the last two sessions
- Today's volumes are six times higher than its 20-day average
- Stock in overbought territory with Relative Strength Index (RSI) at 71
- Has more than doubled from its 52-week low of Rs 275 on March 24, 2020
- Four out of the five analysts tracking the stock have a buy recommendation; 0 sell calls
- The stock trades 2.5% higher than its 12-month consensus price target of Rs 575.4, implying a negative return potential
Only One Gainer On The Nifty Realty Index
Markets At 2:10 P.M.
- Benchmark indices trade near the day's high
- Nifty up 0.7% at 11,518
- Sensex up 0.7% at 39,016
- Nifty Bank up 0.7% at 22,250
- Nifty Midcap index up 0.9%
- Nifty Smallcap index up 0.8%
- India Volatility Index down 1.8% at 20.8
- Nifty Pharma index is the top sectoral gainer; up 2.6%
- Nifty I.T. up for the fourth straight day; up 1.43%
- Nifty Realty is the top sectoral laggard; down 0.9%
- Cipla is the top Nifty gainer; up 3.7%
- Maruti Suzuki is the top Nifty laggard; down 1.2%
- 1,050 stocks on the NSE trade with gains while 705 decline
Money Market Update
The currency ended with losses in today's session as it continues to alternate between gains and losses over the last four trading sessions.
The rupee ended at 73.64 against the U.S. Dollar as compared to Monday's close of 73.48. The currency also ended near its intraday low of 73.73.
With today's losses, The rupee was the worst performing currency in Asia, and one among the only two currency, which underperformed the U.S. Dollar.
Yield on the 10-year bond ended little changed at 6.03% as compared to Monday's close of 6.034%.
Buzzing Stock: Aegis Logistics
- Top gainer on the Nifty Midcap index
- Gains as much as 6.6% to Rs 239.1
- Trades at the highest level in nearly seven months
- Up for the fourth straight day
- Longest winning streak in nearly three months
- Has gained 20% in the last four trading sessions
- Today's volumes are 96% higher than its 20-day average
- Rebounded from 50-Day Moving Average support at 198.1
- Stock entering overbought territory with Relative Strength Index (RSI) at 70
- Has doubled from its 52-week low of Rs 107.2 on March 26, 2020 and is 10% away from its 52-week high of Rs 267 on February 19, 2020
- Six out of the seven analysts tracking the stock have a buy recommendation; 1 sell call
- Return potential of the stock as per Bloomberg data is 5.4%
F&O Snapshot: Active Options Contracts
- Nifty September futures add 3.4% and 5,122 shares in Open Interest.
- Nifty Bank September futures add 5% and 4,243 shares in Open Interest.
Nifty: September 17 Expiry
- 11,500 Call: Premium down 6.6% to Rs 55.1. The contract has added 10,964 shares in Open Interest.
- 11,600 Call: Premium down 23.3% to Rs 20. The contract has added 4,424 shares in Open Interest.
- 11,400 Put: Premium down 26.2% to Rs 45.5. The contract has added 14,422 shares in Open Interest.
Nifty Bank: September 17 Expiry
- 22,000 Put: Premium down 17% to Rs 209.3. The contract has added 19,186 shares in Open Interest.
- 22,500 Call: Premium down 20% to Rs 170.5. The contract has added 10,902 shares in Open Interest.
- 21,500 Put: Premium down 22.7% to Rs 79.1. The contract has added 9,930 shares in Open Interest.
Stock Reaction: Gayatri Projects
The company has informed the exchanges that it has been declared as the L-1 bidder for a State Water and Sanitation Mission project in Uttar Pradesh.
The project involves construction of Kachonda Kalan Group of villages water supply scheme in the Lalitpur district of the state.
The commissioning, operation and maintenance for the project will be for a period of 10 years.
The project is d at Rs 196 crore, the company said.
Shares gained as much as 5% to Rs 17.9, post the announcement.
Stock Reaction: Vascon Engineers
The company has informed the exchanges that it has received a Letter of Intent from Epicons Consultants for the construction of a new academic building.
The new academic building is for the South Indian Education Society at TTC Industrial Area, Navi Mumbai, the company said in an exchange filing.
The order, worth Rs 31.57 crore has been awarded on an item rate basis and has to be completed within 12 months from the date of receipt of this Letter of Intent.
Shares gained as much as 2.2% to Rs 9.81, post the announcement.
European Markets Open Flat
Benchmark indices in Europe opened little changed, shrugging off the tailwind from Chinese Economic data.
The Stoxx 600 index opened 0.1% lower with retail, travel & leisure stocks leading the advance. Banking and Insurance stocks are declining.
Asian markets are mixed while futures on the Dow Jones are trading higher by nearly 100 points.
Brent Crude is little changed at $39.59 per barrel while Gold trades 0.3% higher at $1,963/Oz.
Let's take a look at how benchmark indices across Europe have opened:
- Euro Stoxx 50 up 0.3% at 3,326
- DAX up 0.3% at 13,233
- CAC up 0.2% at 5,062
- FTSE 100 up 0.35% at 6,046
- IBEX 35 up 0.46% at 6,983
How Are The Sectoral Indices Faring
Buzzing Stock: Mindtree
- Among the top performers on the Nifty I.T.
- Trades at an all-time high
- Gains as much as 2.5% to Rs 1,252
- Up for the fourth straight day
- Longest winning streak in nearly a month
- Has gained 7% in the last four trading sessions
- Today's volumes are 96% above its 20-day average
- Stock nearing overbought territory with Relative Strength Index (RSI) at 68
- Has more than doubled from its 52-week low of Rs 672.1 on September 16, 2019
- 15 out of the 36 analysts tracking the stock have a buy recommendation; 12 sell calls
- The stock trades 16.2% higher than its 12-month consensus price target of Rs 1,046.4, implying a negative return potential
ICICI, HDFC Bank Lead Gains On The Nifty Bank
Markets At Noon
- Benchmark indices recover from day's low
- Nifty up 0.5% at 11,493
- Sensex up 0.5% at 39,938
- Nifty Bank up 0.8% at 22,265
- Nifty Midcap index up 0.3%
- Nifty Smallcap index up 0.8%
- India Volatility Index down 1.8% to 20.8
- Nifty Pharma remains the top sectoral gainer; up 2.3%
- Nifty Realty, PSU Bank and Nifty Auto decline 0.5% each
- Dr Reddy's Laboratories is the top Nifty gainer; up 3.3%
- Top three gainers on the Nifty 50 index are Pharma stocks
- Eicher Motors is the top Nifty laggard; down 1.4%
- 1,034 stocks on the NSE trade with gains while 684 decline
Earnings Reaction: Munjal Auto Q1FY21
- Revenue down 29% to Rs 212.7 crore
- Net loss of Rs 11.3 crore from net profit of Rs 4.3 crore
- Ebitda loss of Rs 2.4 crore from Ebitda gain of Rs 14.1 crore
- Auto component business revenue down 30% to Rs 194.6 crore
- Composite products and moulds revenue down 17% to Rs 18.1 crore
- All numbers are consolidated and compared on a year-on-year basis
Shares fell as much as 4.3% to Rs 56.1. The stock has declined in nine out of the last 12 trading sessions.
Buzzing Stock: Cipla
- Top gainer on the Nifty 50 index
- Gains as much as 4.5% to Rs 754
- Biggest single-day gain in a month
- Snaps three-day losing streak
- Had gained only once in the last seven trading sessions
- Today's volumes are triple its 20-day average
- Takes support at its 50-Day Moving Average of 713.9 and rebounds
- Has doubled from its 52-week low of Rs 354.3 on March 13, 2020. However, the stock is 7.3% below its 52-week high of 814.5 on August 10, 2020
- 35 out of the 42 analysts tracking the stock have a buy recommendation; 1 sell call
- Return potential of the stock as per Bloomberg data is 7.2%
Earnings Reaction: Apollo Hospitals Q1FY21
- Revenue down 15.6% to Rs 2,171.5 crore
- Net loss of Rs 208.2 crore from net profit of Rs 57.2 crore
- Ebitda down 90.2% to Rs 35.5 crore
- Ebitda Margin at 1.6% from 14.1%
- Pharmacy business revenue sees growth of 21% year-on-year
- All other parameters are ahead of Bloomberg consensus estimates
- All numbers are consolidated and compared on a year-on-year basis
Shares gained as much as 4.6% to Rs 1,698, before cooling off. The stock is up for the fourth straight day.
Large Trade Alert: Crompton Greaves Consumer Electricals
28 lakh shares of the company exchanged hands in a single large trade on the Bombay Stock Exchange.
The deal was worth Rs 79 crore as per data available on Bloomberg.
Buyers and sellers in the trade were not known.
Shares gained as much as 5.8% to Rs 283.5. The stock gained the most in three months and is trading at the highest level in nearly seven months. Shares are trading higher for the third straight day.
Buzzing Stock: Zensar Technologies
- Among the top performers on the Nifty 500 index
- Gains as much as 9.6% to Rs 197.7
- Biggest single-day gain in two months
- Trades at the highest level in eight months
- Up for the fourth straight day
- Longest winning streak in over a month
- Has gained 16% in the last four trading sessions
- Today's volumes are more than double its 20-day average
- Rebounds from 50-Day Moving Average of 162.7
- Stock enters overbought territory with Relative Strength Index (RSI) at 70
- Has tripled from its 52-week low of Rs 63.8 on March 24, 2020
- 10 out of the 14 analysts tracking the stock have a buy recommendation; 0 sell calls
- The stock trades 5% higher than its 12-month consensus price target of Rs 179, implying a negative return potential
Earnings Reaction: ITI Q1FY21
- Revenue up 2.5% to Rs 165 crore
- Net loss widens to Rs 102.3 crore from Rs 61 crore
- Ebitda loss widens to Rs 59.9 crore from Rs 27.6 crore
- Around 50% of turnover was lost due to Covid-19
- All numbers are consolidated and compared on a year-on-year basis
Shares fell as much as 2.9% to Rs 130.1. The stock is down for the second straight day and has declined in six out of the last eight trading sessions.
Pharma Index Gains Most In A Month
Stock Reaction: TAKE Solutions
The company at its board meeting on Monday informed that it has decided to sell its entire shareholding in its subsidiary, APA Engineering. The company currently holds 58% stake in the subsidiary.
It has also decided to initiate liquidation proceedings of Navitas Life Sciences GmbH, a unit based in Germany. The company has attributed the external and internal events arising from Covid-19 as the reason behind this move.
"The liquidity and business constraints, consequent to the impact of Covid-19 pandemic, have significantly impacted operations of the step-down subsidiary," the statement said.
Shares fell as much as 11.7% - the most in six months to Rs 43.9 - the lowest level in a month.
Stock Reaction: Steel Strips Wheels
The company has informed the exchanges that it has received an export order of nearly 5,100 wheels from the EU Caravan trailer market.
The order is d at 45,000 Euros and will be executed in the month of October from the company's Chennai plant.
The company anticipates orders of similar capacity from the same customer base.
Shares gained as much as 3.2% to Rs 460.5, post the announcement. The stock is up for the second straight day.
Buzzing Stock: Radico Khaitan
- Top gainer on the Nifty Smallcap index
- Gains as much as 7.4% to Rs 445.3
- Biggest single-day gain in four months
- Trades at the highest level since February 2019
- Up for the third straight day
- Has gained 16% in the last three trading sessions
- Today's volumes are nearly quadruple its 20-day average
- Broke above its 50-Day Moving Average of 392.5 on Friday; up 14% since then
- Has doubled from its 52-week low of Rs 220 on March 25, 2020
- Nine out of the 10 analysts tracking the stock have a buy recommendation; 1 sell call
- Return potential of the stock as per Bloomberg data is 8.5%
Markets At 10:10 A.M.
- Benchmark indices remain positive but off the day's high
- Nifty up 0.3% at 11,475
- Sensex up 0.3% at 38,879
- Nifty Bank up 0.3% at 22,168
- Nifty Midcap index up 0.8%
- Nifty Smallcap index up 0.5%
- India Volatility Index down 1.8% to 20.81
- Nifty Pharma is the top sectoral gainer; up 2.3%
- Nifty Realty is the top sectoral laggard; down 0.5%
- Most other sectoral indices trade flat
- Cipla is the top gainer on the Nifty; up 3.3%
- Top three gainers on the Nifty 50 index are pharma stocks
- Tech Mahindra is the top Nifty laggard; down 1.7%
- 1,071 stocks on the NSE trade with gains while 587 decline
Money Market Update
The currency opened higher for the second straight day, after recovering from the day's low on Monday to post modest gains.
The rupee opened at 73.37 against the U.S. Dollar as compared to Monday's close of 73.48. The focus today will be on the trade data for the month of August. The country is likely to report a trade deficit of $7 billion in August.
Yield on the 10-year government bond opened at 6.02% as compared to Monday's close of 6.041%.
India's Consumer Price Inflation rose 6.7% in August, reducing the room for further rate cuts from the central bank.
Traders will also watch for the sale of state government bonds worth Rs 12,500 crore.
Stock Reaction: ICICI Bank
The lender informed the exchanges on Monday that it has been granted an exemption by the Reserve Bank of India, under the Banking Regulation Act, 1949, with regards to its shareholding above 30% in ICICI Lombard and ICICI Prudential.
The exemption is for a period of three years, until September 2023, the bank said in an exchange filing.
The bank also said that currently it has no plans to divest less than 50% shareholding in ICICI prudential and that there would be no impact on the current distribution arrangements.
The above exemption would facilitate compliance with rules if the proposed acquisition of another general insurance business, made by ICICI Lombard is consummated. The said transaction may bring ICICI Bank's shareholding in ICICI Lombard to less than 50%.
Shares gained as much as 2% to Rs 371, snapping a two-day losing streak.
Earnings Reaction: JB Chemicals Q1FY21
- Revenue up 19.2% to Rs 489.6 crore
- Net profit doubles to Rs 121.9 crore
- Ebitda up 71.5% to Rs 158.1 crore
- Ebitda margin at 32.3% from 22.4%
- Net profit boosted by lower other expenses and higher other income
- Other income up to Rs 22.7 crore from Rs 12.6 crore
- Other expenses down to Rs 91.9 crore from Rs 105.3 crore
- Business performance improved during the quarter owing to a better product mix with savings in some heads of expenditure on account of the current situation due to Covid-19
- All numbers are consolidated and compared on a year-on-year basis
Shares gained as much as 16.4% - the most since March 2011 to an all-time high of Rs 965. The stock is up for the fourth straight day, the longest streak in nearly two months.
Coronavirus India Update
- Lowest new Covid-19 cases reported in a week
- 83,809 new case reported in the last 24 hours
- Total confirmed cases at 49,30,236
- Active cases at 9,90,061
- Number of patients cured / discharged / migrated at 38,59,399
- Death toll rises to 80,776
- 1,054 deaths reported in the last 24 hours
- 79,292 patients recovered in the last 24 hours
Stock Reaction: ADF Foods
Shares of the manufacturer and distributor of Indian cusine are gaining at the start of trade after investor Ashish Kacholia purchased stake in the company.
As per data available on the exchanges, Kacholia acquired 0.74% stake in the company at Rs 377.99 pe share.
Shares are locked in an upper circuit of 5% at Rs 399.75 per share. This is the biggest single-day gain seen by the stock in nearly six months.
The stock is up for the second straight day and is trading at a one-month high.
Opening Bell: A Steady Start
Indian equity markets opened higher, tracking positive cues from Wall Street and mixed ones from the Asia Pacific.
The S&P BSE Sensex opened 0.38% higher at 38,904 while the NSE Nifty 50 index gained 0.4% to 11,487 at the start of trade.
Among the sectoral indices, the Nifty PSU Bank index is the top gainer, opening with gains of 0.7% while indices like Nifty Metal and Nifty Media gained 0.6% each.
Broader markets extended Monday's gains at the start of trade. The midcap index opened 0.6% higher while the smallcap index gained 0.8%.
Market breadth stood in favour of the gainers. 1,146 stocks on the NSE opened with gains while 332 stocks declined.
Trading Ideas For The Day
- Nifty: Sell 11,550 Call of the September 17 expiry in the range of Rs 40-42. Target of Rs 26-17 and stop loss of Rs 56.
- Nifty Bank: Sell between 22,225-22,275 fo target of 22,100-22,000 and stop loss of 22,350
- Buy SRF September futures for target of Rs 4,383 and Rs 4,437; stop loss of Rs 4,311
- Sell Tata Steel September futures for target of Rs 399.7 and Rs 391.8; stop loss of Rs 410.3
- Both SRF and Tata Steel are intraday recommendations
Source: ICICI Securities
How Did The Fund Flows Fare On Monday
Key Stocks In Focus
- ICICI Bank: Granted exemption by the Reserve Bank of India, from the Banking Regulation Act, 1949, with regards to shareholding above 30% in ICICI Lombard and ICICI Prudential. The exemption is for a period of three years, until September 2023.
- Indiabulls Housing Finance: Raises Rs 682.87 crore through the QIP issue which was closed on Monday. The issue price of Rs 196.37 per share is a 5% discount to the floor price.
- Vedanta: Deferred its board meeting to consider results to September 30, citing unforeseen circumstances and the Covid-19 pandemic.
- GE Shipping: Signed a contract to buy a second-hand gas carrier. The Japan-built vessel is expected to join the company’s fleet in the third quarter of FY21.
- ADF Foods: Ashish Ramchandra Kacholia acquired 1.49 lakh shares (0.74%) at Rs 377.99 per share.
- Take Solutions: Initiated the liquidation process of its German arm due to Covid-19 impact.
- Non-Nifty Earnings Today: Allcargo Logistics, Future Enterprises, ITD Cementation, Kalyani Forge, Max India, MEP Infra, National Fertilisers, P&G Health, Sterling & Wilson Solar, VA Tech Wabag, Zee Media
For details on earnings reported after market hours, key brokerage updates and F&O cues, click here.
Your Trade Setup For The Day
A Check On Indian ADRs
A Day Of Consolidation?
Good Morning!
Indian indices ended with losses on Monday as a selloff in banking heavyweights offset the gains in information technology stocks. Four of the top five gainers on the Nifty were IT stocks.
Broader markets, however, made merry. The Nifty Smallcap gauge ended with gains of more than 5%, the most since May 2014, with 93 of the 100 index constituents ending in green.
On Tuesday, the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was flat at 11,470 as of 7:55 a.m.
Companies like PVR, Apollo Hospitals, Future Retail, SAIL, ITI, JB Chemicals among others, will be in focus as they reported their quarterly results after market hours on Monday. Broader market names like Allcargo Logistics, Manpasand Beverages, National Fertilisers, Sterling & Wilson Solar and VA Tech Wabag will announce their numbers today.
The street will watch out for Vedanta after the company deferred its board meeting to consider its June quarter results citing unforeseen circumstances.
Asian markets are volatile in early morning trade. Benchmarks in Japan fell, while those in Australia and South Korea are fluctuating after giving up gains.
Futures on the Dow Jones are trading 40 points higher. The index ended with gains of 1.2% on Monday.
West Texas Intermediate crude and gold were little changed at $37.28 per barrel and $1,958/Oz, respectively.
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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