Sensex, Nifty Decline For The Fifth Week In Six

Indian equity benchmarks closed marginally higher paced by gains in UPL anad private lenders.

The S&P BSE Sensex closed 0.1 percent higher to 37,350.33 and the NSE Nifty 50 rose 0.17 percent to 11,047.80. The broader markets represented by the NSE Nifty 500 Index gained 0.2 percent.

However, the benchmarks resumed their weekly declines as it ended lower for fifth time in six weeks.

The market breadth was tilted in favour of buyers. About 923 stocks advanced and 842 shares declined on National Stock Exchange.

Seven out of 11 sectoral gauges compiled by National Stock Exchange traded higher, led by the NSE Nifty PSU Bank Index’s 1.49 percent gain. On the flipside, the NSE Nifty Pharma Index was the only sectoral loser, down 0.77 percent.

Shares of the Tata-group owned retail store chain rose 6.6 percent intraday to an all-time high of Rs 473.20 apiece.

The trading volume was more than three times the 20-day average for this time of the day, according to Bloomberg data. The stock advanced 26 percent in the past 12 months compared with a 1 percent fall in the Sensex.

• Liquidity risks are increasing for Indian real-estate developers, as non-banking financial companies, including housing finance companies are shying away from lending to the sector.
• NBFCs are now also shying away from refinancing maturing debt of even large, proven developers to limit concentration risk to the sector.

Source: Bloomberg

A “trading services issue” delayed the opening for some of the biggest stocks on the London Stock Exchange, reported Bloomberg.

Indian equity benchmarks traded subdued in afternoon trade. Yes Bank was the top gainer after it raised Rs 1,930 crore through qualified institutional placements.

The S&P BSE Sensex traded 0.1 percent higher to 37,352.90 and the NSE Nifty 50 traded flat at 11,040.60, as of 1 p.m. The broader markets represented by the NSE Nifty 500 Index rose 0.07 percent.

The Nifty Index may oscillate between a support level of 11,200 and Tuesday’s low of 10,900 in today’s trade. That’s according to Ruchit Jain, technical analyst at Angel Broking.

The market breadth was tilted in favour of sellers. About 951 stocks declined and 752 shares advanced on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty PSU Bank Index’s 0.80 percent gain. On the flipside, NSE Nifty IT Index was the top loser, down 0.89 percent.

Shares of the country’s largest state-run lender pared losses and traded flat at Rs 289.65 each.

Around 64 lakh shares changed hands in a bunched trade, according to Bloomberg data. The buyers or sellers were not known immediately.

Besides, the board gives in-principle approval to explore dilution of stake in SBI Cards via initial public offer, subject to necessary approvals, according to its statement on the exchanges.

The Nifty Index may oscillate between a support level of 11,200 and Tuesday’s low of 10,900 in today’s trade. That’s according to Ruchit Jain, technical analyst at Angel Broking.

“A directional move is expected only if these levels are breached”, said Jain in an interview to BloombergQuint.

Shares of the private hospital chain surged 6.7 percent to Rs 1,451.75 each, its highest price since March 2016. The company announced its June quarter results on Tuesday.

The company expects margin of its mature hospitals segment to rise to 23 percent in the coming quarter, its Group Chief Financial Officer Krishnan Akhileswaran said.

Out of the 23 analysts tracked by Bloomberg, 21 had recommended ‘Buy’ while two analysts had a ‘Hold’ rating.

Nifty Bank Index pared loss and recovered nearly 300 points from day’s low. The index traded at 28,010 as of 11:45 am.

Shares of the windmill equipment maker snapped a two-day fall and rose 8.4 percent intraday to Rs 4.50 each. The company reported its June quarter results on Wednesday.

Key Highlights (YoY)

• Revenue down 34 percent to Rs 843 crore.
• Net loss at Rs 335 crore versus net loss Rs 573 crore.
• Ebitda down 20.5 percent to Rs 61.7 crore.
• Margin at 7.3 percent versus 6.1 percent.

Around 40 percent of shares that were traded were at the ask price and 59 percent were at the bid, Bloomberg data showed.

Indian equity benchmarks sustained opening losses in the forenoon trade. Indiabulls emerged as the worst Nifty performer after Moody’s downgraded its credit rating.

The S&P BSE Sensex fell 0.50 percent to 37,126.90 and the NSE Nifty 50 declined 0.53 percent to 10,971.10. The broader markets represented by the NSE Nifty 500 Index fell 0.54 percent.

The market breadth was tilted in favour of sellers. About 1,022 stocks declined and 592 shares advanced on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Metal Index’s 1.75 percent fall. On the flipside, NSE Nifty Auto Index was the only gainer, up 0.1 percent.

Shares of the housing finance company declined 9.7 percent to 498 apiece. It emerged as the worst performer on Nifty Index.

Credit rating firm Moody’s revised the company’s corporate family rating to Ba2 from Ba1, according to an exchange notification. Foreign currency senior secured rating was also downgraded from Ba1 to Ba2 and the outlook was lowered to ‘Negative’ from ‘Stable’ on the back of renewed pressure due to tight funding conditions, the notification added.

The shares trade 50 percent below the Bloomberg one-year consensus target price.

Shares of the automaker declined for the fourth session in row after it fell 2.7 percent intraday to Rs 117.6 each.

Credit-rating firm Crisil downgraded long-term ratings to AA- from AA with negative outlook remaining unchanged while short term rating remained unchanged at A1+, according to an exchange filing.

The stock traded at 13 times its estimated earnings per share for the coming year, according to Bloomberg data.

Shares of the private lender plummeted nearly 12 percent to Rs 23.95 each, its lowest price since May 2003. The bank announced its first quarter results on Wednesday.

Key Highlights (YoY)

• Net interest income down 11 percent to Rs 1,457.7 crore.
• Net loss at Rs 3,800.8 crore vs net loss at Rs 2,409.9 crore.
• Provisions at Rs 7,009.5 crore versus Rs 4,602.6 crore (Rs 7,233.3 crore QoQ)
• GNPA at 29.12 percent versus 27.47 percent. (QoQ)
• NNPA at 8.02 percent versus 10.11 percent. (QoQ)

The trading volume was six times the 20-day average for this time of the day, Bloomberg data showed. The relative strength index on the stock was below 30, indicating it may be oversold.

Shares of the private lender rose as much as 3.2 percent to Rs 79 each.

Yes Bank said that it has raised Rs 1,930 crore through qualified institutional placements. The QIP opened on Aug. 9 and closed on Aug. 14, according to its stock exchange filing.

The stock has declined 80 percent in the past 12 months compared to a 1.4 percent fall in the Nifty Index.

Indian equity benchmarks opened lower mirroring their Asian peers.

The S&P BSE Sensex fell 0.63 percent to 37,075.15 and the NSE Nifty 50 declined 0.66 percent to 11960.20. The broader markets represented by the NSE Nifty 500 Index fell 0.58 percent.

The market breadth was tilted in favour of sellers. About 783 stocks declined and 570 shares advanced on National Stock Exchange.

All 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Auto Index’s 1.71 percent fall.

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.14 percent to Rs 71.38 against the greenback.

The closely followed South Korean won is down 0.2 percent and dealers see the dollar-rupee pair trading in a range of 71.20-71.80 a dollar in the day, according to Bloomberg.

In the bond market, sovereign bonds are set for their second weekly loss on concerns the government may end up borrowing more amid reports of additional stimulus to boost a slowing economy.

• Gandhi Special Tubes record date for share buyback.
• Hathway Cable & Datacom , Indo Count ,Max Ventures to move into short term ASM Framework.
• CARE Ratings, Alphageo , Themis Medicare to move out of short term ASM Framework.
• Alphageo, Nagarjuna Oil Refinery price band revised to 5 percent.
• Ashapura Minechem to move into ASM Framework.

August Futures

• Nifty futures closed at 11,028, discount of 1.2 points versus 0.65 points.
• Nifty futures OI down 1 percent, sheds 1.9 lakh shares in OI
• Bank Nifty futures closed at 27,994, discount of 25 points versus premium of 8.7 points.
• Bank Nifty futures OI down 5 percent, sheds 91,000 shares in OI

Options

• Nifty PCR at 1.19 versus 0.96 (across all series)

Nifty Weekly Expiry Aug. 22

• Max OI on call side at 11,200 (9.4 lakh shares)
• Max OI on put side at 11,000 (9.6 lakh shares)
• Max OI addition seen in 11,000P (+7.9 lakh shares), 10,900P (+7.8 lakh shares), 11,200C (+6 lakh shares)

Nifty Monthly Expiry Aug. 22

• Max OI on call side at 11,500 (24.9 lakh shares)
• Max OI on put side at 11,000 (36.9 lakh shares)

Stocks In F&O Ban

• DHFL

Earnings Reaction To Watch

Brigade Enterprises (Q1,YoY)

• Revenue up 1.4 percent to Rs 708.7 crore. (estimate Rs 720 crore)
• Net profit down 34.7 percent to Rs 41.2 crore. (estimate Rs 62.1crore)
• Ebitda up 1.6 percent to Rs 182.3 crore. (estimate Rs 190 crore)
• Margin at 25.7 percent. (estimate 26.4 percent)
• License fees up 2.1 times to Rs 20.2 crore.
• Employee expenses up 26 percent to Rs 58.2 crore.

HEG (Q1, YoY)

• Revenue down 48.6 percent to Rs 816.5 crore.
• Net profit down 69.6 percent to Rs 234.4 crore.
• Ebitda down 70.7 percent to Rs 347.8 crore.
• Margin at 42.6 percent versus 74.8 percent.

Indraprastha Gas (Q1, YoY)

• Revenue up 22.3 percent to Rs 1,576 crore.
• Net profit up 24.2 percent to Rs 218.4 crore.
• Ebitda up 20.7 percent to Rs 358.4 crore.
• Margin at 22.7 percent versus 23 percent.

IDFC (Q1, YoY)

• Net interest income up 4.2 percent to Rs 118.3 crore.
• Net profit down 88.9 percent to Rs 5.2 crore.
• Losses from associates at Rs 51.6 crore in current quarter.

IDBI Bank (Q1, YoY)

• Net interest income down 11 percent to Rs 1,457.7 crore.
• Net loss at Rs 3,800.8 crore vs net loss at Rs 2,409.9 crore.
• Provisions at Rs 7009.5 crore versus Rs 4,602.6 crore (Rs 7,233.3 crore QoQ)
• GNPA at 29.12 percent versus 27.47 percent. (QoQ)
• NNPA at 8.02 percent versus 10.11 percent. (QoQ)

Johnson Controls - Hitachi Air Conditioning India (Q1, YoY)

• Revenue up 19.9 percent to Rs 951.9 crore.
• Net profit up 25.4 percent to Rs 63.6 crore.
• Ebitda up 31.4 percent to Rs 110.6 crore.
• Margin at 11.6 percent versus 10.6 percent.

Suzlon Energy (Q1, YoY)

• Revenue down 34 percent to Rs 843 crore.
• Net loss at Rs 335 crore versus net loss Rs 573 crore.
• Ebitda down 20.5 percent to Rs 61.7 crore.
• Margin at 7.3 percent versus 6.1 percent.

Repco Home Finance (Q1, YoY)

• Net interest income up 8.5 percent to Rs 121.6 crore.
• Net profit up 2.5 percent to Rs 62.4 crore.

Man Industries (Q1, YoY)

• Revenue down 62.2 percent to Rs 238.9 crore.
• Net profit down 85.6 percent to Rs 3.6 crore.
• Ebitda down 62.7 percent to Rs 23.3 crore.
• Margin at 9.8 percent versus 9.9 percent.

• Bosch said that the company will be observing ‘no production days’ ranging up to 10 days per month during September quarter at its various plants belonging to Powertrain Solutions division. The move comes in order to align production with sales requirements, it said.
• Yes Bank said that it has raised Rs 1,930 crore through qualified institutional placements. The QIP opened on Aug. 9 and closed on Aug. 14, according to its stock exchange filing.
• SBI’s board gives in-principle approval to explore dilution of stake in SBI Cards via initial public offer, subject to necessary approvals, according to its statement on the exchanges.
• IDFC and its arm IDFC Financial Holding entered into an agreement to sell 100 percent stake in IDFC Securities to Dharmesh Mehta-led investors.
• Tata Motors: Crisil downgraded long-term ratings to AA- from AA with negative outlook remaining unchanged while short term rating remained unchanged at A1+.
• Suzlon Energy defaulted in repayment of FCCBs worth Rs 1,219 crore. The said defaults gives right to the lenders who have issued Standby Letter of Credit to recall facility worth Rs 3,917 crore.
• Cox & Kings defaulted in payment CPs worth Rs 149 crore which was due on August 14.
• Indiabulls Real Estate’s board to embark on a path to achieve zero net debt in current financial year through strategic divestment of the company’s stakes in commercial and leasing business at a valuation of Rs 4,400-4,800 crore.
• Brigade Enterprise’s shareholders approved share bonus issue at 1:2 and Rs 115 crore preferential warrant issue at the company’s annual general meeting.
• DHFL defaulted on payment of NCDs interest amounting to Rs 4.48 crore which was due on Aug. 14.
• Jindal Saw’s subsidiary—Hunting Energy Services has signed a strategic alliance with the company sharing its patented Premium Connections technology, according to a statement.
• JSPL clarified that it has been scouting for suitable buyers for its mines and mineral assets across Australia, Africa and Asia and the company confirms that is has entered into a share purchase agreement with a potential buyer from Botswana.
• Indiabulls House Finance was downgraded by Moody’s from Ba1 to Ba2. Foreign currency senior secured rating downgraded from Ba1 to Ba2. Outlook Changed to Negative from Stable on the back of renewed pressure due totight funding conditions.
• Jindal Steel NCLT Ahmedabad approved the order of amalgamation of four units into the company, with appointed date set on Aug. 14.
• SJVN allotted two power projects by Himachal Pradesh Government.
• Balmer Lawri’s board approved company’s exit from Kanpur Flowercycling.
• Cox & Kings Financial Services Brickwork Ratings downgraded credit rating of company to BWR BBB-  from BWR BB with outlook changing from ‘stable’ to ‘negative’.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.38 percent to 10,938 as of 7:45 a.m.

Stocks in Asia slipped after another tumultuous session on Wall Street and further declines in Treasury yields, on heightened trade uncertainty and fears of a slowing global economy.

Japanese shares opened lower along with South Korea. Contracts on the S&P 500 Index edged higher.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.