All You Need To Know Going Into Trade On August 5
Stocks in the news, big brokerage calls of the day, complete trade setup and much more!
Asian stocks were steady early Thursday after U.S. shares dipped amid mixed economic data and comments from a Federal Reserve official that the central bank is on course to taper stimulus support.
Equities edged up in South Korea and Japan and were little changed in Australia. U.S. contracts climbed. The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, little changed at 16,262 as of 7:10 a.m.
The S&P 500 fell from a record overnight, led lower by energy shares, while the technology sector proved more resilient. Vice Chairman Richard Clarida said the Fed is on track for a liftoff in interest rates in 2023 and an announcement later this year on paring bond purchases.
Clarida painted an upbeat picture of the outlook while acknowledging that the rapid spread of the delta virus strain poses a downside risk. The latest economic data showed a much softer-than-expected ADP employment report but a record expansion for U.S. service industries. Treasury yields edged up and the dollar held a climb.
Global stocks remain close to all-time highs as investors assess the Fed outlook, robust earnings and the challenges to economic reopening from Covid-19. China’s regulatory crackdown on private industries also remains in focus.
Oil held below $70 a barrel after an increase in U.S. crude inventories added to concerns about demand recovery amid the coronavirus resurgence.
Earnings Post Market Hours
Titan Company Q1FY22 (Consolidated, QoQ)
Revenue down 53.6% at Rs 3,473 crore Vs Rs 7,494 crore (Bloomberg estimate: Rs 2,903.6 crore)
Net profit down 96.5% at Rs 20 crore Vs Rs 564 crore (Bloomberg estimate: loss of Rs 33.5 crore)
Ebitda down 83.2% at Rs 137 crore Vs Rs 817 crore (Bloomberg estimate: Rs 31.5 crore)
Margin at 3.9% Vs 10.9% (Bloomberg estimate: 1.1%)
HPCL Q1FY22 (Standalone, QoQ)
Revenues down 3.2% at Rs 72,443.37 crore Vs Rs 74,843.42 crore (Bloomberg estimate: Rs 73,830.3 crore)
Net profit down 40.5% at Rs 1,795 crore Vs Rs 3,017.96 crore (Bloomberg estimate: Rs 2,061.7 crore)
Ebitda down 31.6% at Rs 3,192.9 crore Vs Rs 4,666.4 crore (Bloomberg estimate: Rs 2,857.7 crore)
Margin at 4.4% Vs 6.2% (Bloomberg estimate: 3.9%)
The company is in pre-commissioning stage of revamping the Mumbai refinery and expects to run the plant at expanded capacity in two-and-half months, Chairman Mukesh Surana said.
To restart the fire-hit crude unit at Vizag in 10 days.
Expects gasoline sales to remain at pre-pandemic levels this year, while diesel could reach near normal by the end of the year.
Adani Total Gas Q1FY22 (Standalone, QoQ)
Revenue down 15% at Rs 522.27 crore Vs Rs 614.47 crore
Net profit down 4% at Rs 138.40 crore Vs Rs 144.82 crore
Ebitda up 1% at Rs 207.11 crore Vs Rs 204.67 crore
Margin at 39.7% Vs 33.3%
Apollo Tyres Q1FY22 (Consolidated, QoQ)
Revenue down 9% at Rs 4,584.47 crore Vs Rs 5,025.69 crore
Net profit down 56% at Rs 127.78 crore Vs Rs 287.26 crore
Ebitda down 30% at Rs 566.77 crore Vs Rs 814.64 crore
Margin at 12.4% Vs 16.2%
Stocks To Watch
Vodafone Idea: Kumar Mangalam Birla has stepped down as chairman of the company. The board accepted Birla’s request to step down as non-executive director and non-executive chairman of Vodafone Idea from August 4. Board has elected Himanshu Kapania as the non-executive chairman. Kapania is a nominee of the Aditya Birla Group. Board also appointed Sushil Agarwal, a nominee of Aditya Birla Group, as an additional director.
SBI Life Insurance Company: CA Emerald Investments, an affiliate of Carlyle Group, to sell its entire 1.9% stake in SBI Life Insurance Company. It will sell 1.90 crore shares at Rs 1,130- Rs 1,136.85 apiece, as per term sheet. At the lower end, CA Emerald Investments will be able to raise Rs 2,147 crore ($289.4 million).
Reliance Industries: To double its PET recycling capacity by setting up a recycled polyester staple fiber manufacturing facility in Andhra Pradesh. Srichakra Ecotex India will build and operate the new recycled PSF – Recron GreenGold and PET flakes wash-line in Andhra Pradesh for Reliance. The plant will help Reliance to more than double its recycling capacity to 5 billion post-consumer PET bottles.
Dr. Reddy's Laboratories: Entered into a definitive agreement with BioDelivery Sciences International, Inc., to sell its U.S. and Canada territory rights for Elyxyb 25 mg/mL to the U.S.-based firm. Under the terms of agreement, Dr. Reddy's will receive $6 million upfront upon closing, followed by $9 million one year from closing. Further, it is eligible to receive event based, sales-based milestones and quarterly earn-out payments. “Elyxyb is an oral solution dosage form which makes it convenient for patients to take it immediately upon emergence of migraine attacks,” said Dr. Reddy's Laboratories CEO Erez Israeli.
Shipping Corporation of India: Approved demerger of non-core assets into new company. The demerger is aimed at facilitating “an effective and efficient disinvestment” of Shipping Corporation of India by the government. Shipping Corp holders will get 1 share in the new company for every share they held in the state-run shipping company. The new company will be listed on BSE and NSE.
Ion Exchange (India): Indian Oil Corporation has awarded an Engineering, Procurement, Construction and Commissioning contract of Rs 357.46 crore to the company to design and install effluent treatment plant on turnkey basis for its Para Xylene and Purified Terephthalic Acid complex project at Paradip, Orissa. The project is to be constructed and commissioned within 26 months from the date of Letter of Acceptance.
Prakash Industries: Won Bhaskarpara Coal Mine in India auction.
MMTC: The Supreme Court has passed an order in MMTC vs Anglo American Metallurgical Coal Pty Case reducing the interest component. Details are being worked out to know the impact of this decision, the company said. MMTC may need to make significant provision in the Accounts for 2020-21. The company is also exploring all legal remedies available.
Shriram Transport Finance Company: Allotted 1000 secured NCDs of face value of Rs 10 lakh each, aggregating to Rs 100 crore on private placement basis. The proceeds of the issue will be utilised for financing of commercial vehicles, refinancing of existing debt and other general purposes of the company.
Borosil Renewables: To increase production capacity of its third furnace (SG-3), being installed at its manufacturing facility at Bharuch, Gujarat, from 500 MT to 550 MT per day. The expansion will cost company Rs 600 crore
Earnings: Cipla, GAIL (India), Adani Power, Escorts, Birla Corporation, Gujarat Gas, Tata Chemicals, Accelya Solutions India, Bajaj Consumer Care, IPCA Laboratories, Brigade Enterprises, REC, Honeywell Automation India, KIOCL, NCC, Quess Corp, Thermax, Narayana Hrudayalaya, Ador Welding, Alicon Castalloy, Andhra Petrochemicals, Arvind, Cera Sanitaryware, Hikal, ITD Cementation India, Johnson Controls-Hitachi Air Conditioning India, Prince Pipes And Fittings, Jubilant Industries, Monte Carlo Fashions, NACL Industries, Navkar Corporation, Niyogin Fintech, Panama Petrochem, PTC India Financial Services, Pitti Engineering, SML Isuzu, Somany Ceramics, TTK Healthcare, Vidhi Specialty Food Ingredients
Offerings
SBI Life Holder CA Emerald to sell 19 million shares: Terms
Windlas Biotech Ltd.’s Rs 401.5-crore issue was subscribed 3.18 times.
The Rs 1,213-crore initial public offering of Krsnaa Diagnostics was subscribed 1.98 times.
Exxaro Tiles Ltd.’s Rs 161-crore initial public offering was subscribed 4.67 times.
Devyani International Ltd.’s Rs 1,838-crore issue was subscribed 2.69 times.
Nuvoco Vistas sets price range for up to $674 million IPO at Rs 560-570/share, offer open Aug. 9-11
Chemplast Sanmar sets Rs 530-541 a share range for IPO
Aptus Value Housing Finance India IPO range set at Rs 346-353 a share
Click here for more in-depth coverage on IPO.
Pledge Share Details
Max Financial Services: Promoter Max Ventures Investment Holdings revoked pledge of 1.04 lakh shares on August 2.
As reported on August 4.
Bulk Deals
Coforge: Promoter Hulst BV sold 33.50 lakh shares (5.53%) at Rs 4,738.67 per share. Nomura India Investment Fund bought 3.50 lakh shares (0.58%) at Rs 4,710 per share.
Fineotex Chemical: Promoter Sixteenth Street Asian Gems Fund bought 11.78 lakh shares (1.06%) at Rs 107.17 per share.
Indiabulls Housing Finance: BNP Paribas Arbitrage sold 31.74 lakh shares (0.69%) at Rs 280.44 per share.
Insider Trades
Eris Lifesciences: Promoter Himanshu Shah sold 10,000 shares on August 2.
Shiva Cement: Promoter Anushree Jindal bought 30,000 shares on July 30.
Who’s Meeting Whom
Indian Energy Exchange: To meet Awriga Capital on August 5.
Trading Tweaks
Ex-Date Final Dividend: Maruti Suzuki India, Indian Oil Corporation, NCC, Akzo Nobel India, avanti feeds, Dhunseri Ventures, GMM Pfaudler, Gujarat Pipavav Port, Jubilant Ingrevia, Jubilant Pharmova, Kopran, Strides Pharma Science
Ex-Date Interim Dividend: SRF, Eris Lifesciences, Goodluck India, Granules India, Ramkrishna Forgings, Vaibhav Global
Ex-Date Dividend: Apar Industries, DFM Foods, Hester Biosciences, INEOS Styrolution India, Jayant Agro-Organics
Ex-Date Income Distribution: IndInfravit Trust
Record Date Income Distribution: India Grid Trust, Embassy Office Parks REIT
Record Date Final Dividend: Cummins India
Record Date Dividend: Minda Industries
Price Band Revised From 10% To 5%: Indian Metals & Ferro Alloys
Move Into Short-Term ASM Framework: Vidhi Specialty Food Ingredients
Move Out Of Short-Term ASM Framework: Schaeffler India
Money Market Update
The rupee ended at 74.18 against the U.S. Dollar on Wednesday as compared to Tuesday's closing of 74.28.
F&O Cues
Nifty August futures ended at 16,256.50, a discount of 2.3 points.
Nifty August futures added 0.79%, and 1,847 shares in Open Interest.
Nifty Bank August futures ended at 36,089.05, a premium of 61 points.
Nifty Bank August futures shed 0.91%, and 643 shares in Open Interest.
Securities that continue to be on the ban list: Sun TV.
Securities added to the ban list: Canara Bank, Indiabulls Housing Finance.
