Sensex, Nifty End Lower For Second Day In A Row

Indian equity benchmarks ended lower for the second day in a row, amid weak global cues.

The S&P BSE Sensex Index 0.95 percent lower at 37,165.16 and the NSE Nifty 50 Index closed at 11,244.70, down 0.89 percent.

The market breadth was tilted in favour of sellers. Ten out of 11 sectoral gauges compiled by NSE fell, led by NSE Nifty Realty Index's 1.6 percent decline. On the flipside, NSE Nifty Pharma Index was the only sectoral gainer, up 1.4 percent.

Transport Corporation Of India Ltd. reported a jump of 60 percent on a yearly basis in its bottomline, according to its stock exchange filing.

Key earnings highlights (Q1, YoY):

• Net profit up 60 percent at Rs 28.2 crore.
• Revenue up 17.2 percent at Rs 581.5 crore.
• Ebitda up 14.3 percent at Rs 51.2 crore.
• Margin at 28.2 percent versus 17.6 percent.

Shares of the consumer goods maker fell as much as 2.9 percent to Rs 370.70 after its net profit for the April-June period fell short of analysts estimates.

Key earnings highlights (Q1, YoY):

• Net profit up 10.2 percent at Rs 255.7 crore. (Bloomberg estimates at Rs 262 crore)
• Revenue up 20.5 percent at Rs 2,026.8 crore.
• Ebitda up 9.2 percent at Rs 354.9 crore.
• Margin at 17.5 percent versus 19.3 percent.

Key highlights from the conversation:

• Cement consumption is robust in all markets.
• Demand is coming from infrastructure and road projects.
• Realisations have been poor compared to last year.
• Low prices, high power and fuel costs impacted realisations.
• Coal shortage led to rise in input costs.
• Current demand scenario better than that in March quarter.
• Seeing strong headwinds to pricing across markets.
• Will cross the 20 percent margin mark when prices improve.
• Demand from government projects will stay robust.
• Rural, semi-urban segment should improve post monsoon.

Shares of the Mumbai-based software developer rose as much as 8.2 percent to Rs 498 after its June quarter profit surpassed Bloomberg consensus estimates.

Key earnings highlights:

• Net profit at Rs 11.48 crore versus loss of Rs 3.18 crore (YoY); estimate of Rs 7.84 crore
• Revenue at up 25 percent at Rs 229 crore versus Rs 182.7 crore (YoY); estimate of Rs 226 crore

Shares of the Mumbai-based drugmaker rose as much as 6.09 percent to record high of Rs 2,826 after its profit met Bloomberg consensus estimates in June quarter.

Key earnings highlights:

• Net profit rose 60.5 percent to Rs 91.8 crore versus estimate of Rs 91.8 crore.
• Revenue rose 21.7 percent to Rs 512 crore versus estimate of Rs 420.9 crore.
• Ebitda up 69.6 percent at Rs 130.1 crore versus Rs 76.7 crore.
• Margins at 25.4 percent versus 18.2 percent.

Shares of the Gurugram-based paint maker swung between gains and losses after it reported June quarter earnings.

Key earnings highlights:

• Revenue fell marginally to Rs 716 crore versus Rs 722 crore (YoY)
• Net profit up 5 percent at Rs 43.5 crore versus Rs 41.2 crore (YoY)
• Ebitda up 9.8 percent at Rs 72.5 crore versus Rs 66 crore
• Margins at 10.1 percent versus 10.2 percent

Shares of the Chennai-based cement maker fell as much as 3.8 percent to Rs 685.65 after its profit missed Bloomberg consensus estimates in June quarter.

Key earnings highlights:

• Net profit down 20 percent at Rs 125 crore versus estimate of Rs 145 crore
• Revenue down 3 percent at Rs 1,186 crore versus estimate of Rs 1,190 crore
• EBITDA down 13.8 percent at Rs 250.3 crore versus Rs 290.5 crore
• Margin at 20.5 percent versus 28.2 percent

• Aditya Birla Fashion: The Mumbai-based apparel manufacturer and retailer rose as much as 17.2 percent to Rs 180.90. Trading volume was 198.1 times its 20-day average.
• Piramal Enterprises: The Mumbai-based specialty pharma company rose as much as 7.6 percent to Rs 3,018.70. Trading volume was 13.6 times its 20-day average.
• Tamil Nadu Newsprint: The Chennai-based paper manufacturer rose as much as 8 percent to Rs 298. Trading volume was 15.7 times its 20-day average.
• Himadri Specialty Chemicals: The Kolkata-based chemical maker rose as much as 11.85 percent to Rs 154.85. Trading volume was 8.2 times its 20-day average.

Shares of the Mumbai-based real estate developer fell as much as 3.8 percent to Rs 715 after its profit declined 65 percent to Rs 34.30 crore in June quarter.

Key earnings highlights:

• Net profit declined 65 percent to Rs 34.30 crore versus Rs 99.17 crore (YoY)
• Revenue declined 24 percent to Rs 997 crore versus Rs 800.54 crore (YoY)
• Q1 total booking value at Rs 820 crore versus Rs 1474 crore (YoY)
• Margin at 6.7 percent versus 12.8 percent (YoY)
• Ebitda down 35 percent at Rs 66.9 crore versus Rs 102.9 crore (YoY)

• Indian equity benchmarks fell with Asian counterparts as trade worries resurfaced.
• The S&P BSE Sensex fell 0.65 percent or 250 points to 37,270 and the NSE Nifty 50 index declined 0.63 percent or 70 points to 11,275.
• Sixteen out of 19 sector gauges compiled by BSE were trading lower led by the S&P BSE Auto index's 1 percent fall. On the other hand, the S&P BSE Healthcare index was top gainer, up 1.5 percent.
• The overall breadth was negative as 1,261 shares were declining while 1,106 were advancing on BSE.

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Nifty 27,600 strike price call was among the most active option contracts on the National Stock Exchange ahead of its weekly expiry.

Premium on the contract fell 93 percent to Rs 7.35. Over 18.88 lakh shares were added to the open interest which stood at over 23.59 lakh shares.

Click here to see the complete options chain

Shares of the Bhopal-based construction company rose as much as 9.9 percent, the most in over four months, to Rs 869.80 after it emerged as the lowest bidder for Coal India's arm Northern Coalfield.

Dilip Buildcon was declared L-1 bidder for a new OB removal contract mining project valued at Rs.717.45 crore (excluding GST) by the Northern Coalfield Limited (NCL), a subsidiary of Coal India, the company said in an exchange notification.

Shares of the state-run copper producer rose as much as 2.9 percent to Rs 66.90 after Cabinet Committee on Economic Affairs today approved a fresh equity issue of 15 percent by Hindustan Copper Ltd. which will help the state-run company raise Rs 900.6 crore.

Hindustan Copper will issue 13.87 crore fresh equity shares, to the extent of 15 percent, which will bring down government stake in the PSU to 66.13 percent, an official statement said.

Shares of the Mumbai-based adhesive maker fell as much as 4.3 percent, the most in nearly two months, to Rs 1,081.55 after its profit missed Bloomberg consensus estimates in June quarter.

Key earnings highlights:

• Net profit rose 5.5 percent at Rs 239 crore versus estimate of Rs 275 crore
• Revenue advanced 20 percent to Rs 1,834 crore versus estimate of Rs 1,777 crore
• Ebitda up 19 percent at Rs 381 crore.
• Margin at 20.8 percent versus 21 percent.

Shares of metal manufacturing companies fell after base metal prices dropped on Shanghai Exchange.

Steel and aluminium snapped their four-day winning streak and fell over 1.5 percent on Shanghai Exchange. Zinc and Copper also declined over a percent.

Shares of the Madhya Pradesh-based graphite electrode maker rose as much as 5 percent to record high of Rs 4,559.80 after it reported profit of Rs 770 crore compared with a loss during the same quarter last year.

Key earnings highlights:

• Revenue up 7.7 times at Rs 1587.4 crore.
• Net profit at Rs 770.3 crore versus net loss at Rs 8.4 crore.
• Ebitda at Rs 1,188 crore versus Rs 23.4 crore.
• Margin at 74.8 percent versus 11.4 percent.

Indian equity benchmarks edged lower dragged by weakness in banking and metal stocks.

The S&P BSE Sensex fell 0.35 percent or 131 points to 37,390 and the NSE Nifty 50 index declined 0.31 percent or 36 points to 11,309.

Nine out of 11 sector gauges compiled by National Stock Exchange were trading lower led by Nifty PSU Bank index's 1 percent drop. On the other hand, the Nifty Pharma index was top gainer, up 0.4 percent.

The mid- and small-cap shares also declined in line with larger peers as the Nifty Midcap 100 index declined 0.3 percent.

Rupee rose 16 paise to six week high of 68.26 per dollar after the central bank maintained a neutral stance at its policy review on Wednesday, much to the relief of many investors.

The MPC’s decision to hike repo rate by 25 basis points while retaining the neutral stance reiterates the view of a shallow rate-hike cycle amid increasing global and domestic uncertainties, according to analysts at Kotak Mahindra Bank.

Meanwhile, the sovereign bonds extended gain and 10-year bond yield dropped 2 basis points to 7.68 percent, lowest level since May 9.

Who’s Meeting Whom

• Shriram Transport Finance to meet Indus Capital Partner and Legatum Capital on Aug. 2.
• Kiri Industries to meet Brairwood Capital and Centrum Broking on Aug. 2.

Insider Trades

• Maharashtra Seamless promoter acquired 55,000 shares on July 26.
• Grauer & Weil (India) promoter acquired 21,880 shares from July 30 – 31.

Bulk Deals

• Talwalkars Lifestyles Ltd: American Funds Insurance Series sold 7.98 lakh shares or 2.6 percent equity at Rs 153.22 each.

Talwalkar Fitness Ltd

• Capital World Growth and Income Fund sold 9.60 lakh shares (3.1 percent) at Rs 30.12 each.
• Smallcap World Fund Inc. sold 6.12 lakh shares (2 percent) at Rs 27.7 each.

F&O Cues

• Nifty August futures ended at 11,374.3, with a premium of 28 points versus 15 points.
• August series: Nifty open interest up 3 percent; Bank Nifty open interest down 11 percent.
• India VIX ended at 12.5, up 0.4 percent.
• Max open interest for August series call at 11,500 strike price call option (open interest at 29.9 lakh shares, up 7 percent)
• Max open interest for August series put at 11,000 strike price put option (open interest at 51 lakh shares, up 8 percent)

Trading Tweaks

• Bhansali Engineering Polymers, Dilip Buildcon, Goa Carbon, HIL, Himadri Speciality Chemical, Tinplate Company of India and Venkys (India) to be moved out of ASM framework effective today.
• Pioneer Distilleries circuit filter revised to 5 percent.
• Borosil Glass Works ex-date for bonus in ratio of 3:1
• Kaveri Seed Company ex-date to determine buyback eligibility.

• Hero MotoCorp: Two-wheeler sales up 9 percent at 679,862 units versus 623,829 units (YoY)
• Eicher Motors: Motorcycle sales up 7 percent at 69,063 units versus 64,459 units (YoY); Total commercial vehicle sales up 36.7 percent at 5,694 units versus 4,363 units (YoY)
• Tata Motors: Total domestic sales up 21 percent at 51,896 units versus 42,775 units

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• Government collects Rs 96,483-crore GST for June

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, little changed at 11,368 as of 7:54 a.m.

Asian stocks declined as trade worries came back to the fore, while Japan’s 10-year bond yield continued to rise Thursday to the highest in almost 18 months following the central bank’s decision earlier this week to allow for wider movements. Treasury yields held at 3 percent.

China and Hong Kong equity indexes led declines across the region. Earlier, trade concerns weighed on the S&P 500 Index, overshadowing positive Apple Inc. earnings. The 10-year JGB yield rose to 0.145 percent, its highest since February 2017. Ten-year Treasury yields touched 3 percent for the first time since June as the Federal Reserve unanimously decided to leave rates unchanged while making it clear borrowing costs are headed higher.

Currencies

• The yen added 0.1 percent to 111.65 per dollar.
• The offshore yuan was steady at 6.8271 after falling 0.3 percent.
• The euro bought $1.1663.
• The British pound was at $1.3123 prior to the BOE decision.
• The Bloomberg Dollar Spot Index was flat.

Commodities

• West Texas Intermediate crude added 0.3 percent to $67.86 a barrel after sliding 1.6 percent.
• Gold was up 0.1 percent to $1,217.48 an ounce.
• Copper fell 0.6 percent to $6,138 a ton, adding to a 2 percent tumble Wednesday.
• The Bloomberg Commodity Index fell 1.3 percent Wednesday.

Here are some global events to watch out for this week:

• Earnings season continues with Berkshire Hathaway, Barclays, Toyota and BMW among companies reporting results.
• The U.S. jobs report is on Friday, and is predicted to show a healthy labor market, with 190,000 new jobs.

Source: Bloomberg