All You Need To Know Going Into Trade On July 14

Asian stocks were mixed early Wednesday after Wall Street fell from a record and bond yields rose following a surprise U.S. inflation jump that stirred the debate on how long Federal Reserve policy can stay ultra-loose.

Shares fluctuated in Japan, dipped in South Korea and were steady in Australia. The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, fell 0.24% at 15,796.50 as of 6:50 a.m.

U.S. futures were little changed after the S&P 500 slipped for the first time in three trading sessions while the Nasdaq 100 ended little changed. Traders are digesting a release showing the highest U.S. inflation since 2008 as well as mixed earnings from JPMorgan Chase & Co. and Goldman Sachs Group Inc.

Investors are also monitoring the spread of the more contagious delta variant of Covid-19, which is hampering the recovery from the pandemic in some parts of the world. The unfolding earnings season is key too, with global stocks close to record highs on optimism over the bounce back from the health crisis.

Oil edged lower after touching the highest price in more than 2 1/2 years. The prospect of an imminent flood of crude exports from Iran and other major producers has waned, and the International Energy Agency has warned of a deepening supply crunch.

Data To Watch

• 12pm: India June wholesale price inflation YoY, est. 12.18%, prior 12.94%

• 2pm: India care sales data for June

Earnings Post Market Hours

Mindtree (Q1FY22, Consolidated, QoQ)

• Revenue up 8.6% to Rs 2,291.7 crore vs Rs 2,109.3 crore

• Ebitda up 0.4% to Rs 464.5 vs Rs 462.6 crore

• Profit after tax up 8.2% to Rs 343.4 crore vs Rs 317.3 crore

Tata Metaliks (Q1FY22, Consolidated, QoQ)

• Revenue down 8.7% to Rs 603 crore vs Rs 660.8 crore

• Profit up 26% to Rs 94.72 crore vs Rs 75 crore

Stocks To Watch

• Vedanta, Hindustan Zinc: Announced production results for Q1FY22. Mined metal production for the quarter was 221,000 tonnes, up 9% as compared to Q1FY21 on account of higher ore production largely at Rampura Agucha mines (RAM) and Zawar mines. This was partially offset by lower overall metal grades. In comparison to Q4FY21, it decreased by 23%, mainly due to lower ore production at Sindesar Khurd & Rampura Agucha mines due to operators' absenteeism in April & May in light of second wave of Covid-19. Integrated metal production was 236,000 tonnes for Q1 FY22, up 17% as compared to Q1 FY21 in line with higher availability of mined metal and down 8% as compared to Q4 FY21 on account of lower mined metal production. Integrated zinc production was 188,000 tonnes, up 20% as compared to Q1FY21 and down by 4% as compared to Q4 FY21, integrated lead production was 48,000 tonnes for Q1 FY22, up 9% as compared to Q1 FY21 and down 21% as compared to Q4 FY21.

• Authum Investment and Infrastructure: Appointed Amit Dangi, whole time director of the company as regular chairperson of the board with immediate effect.

• Schaeffler: Jürgen Ziegler, non-executive non-independent director of the company has tendered his resignation effective from July 21 on account of other professional commitments.

• Beekay Steel Industries: Launched a new product -- Beekay Turbo 550 Max Interlocking TMT Bars manufactured at its Parwada Unit at Visakhapatnam, Andhra Pradesh.

• Torrent Power: Released its annual report. The company ended FY21 with a revenue of Rs 12,314 crore, down 10% from Rs 13,818 crore in FY20. Ebitda fell 3% from Rs 3,734 crore to Rs 3,607 crore. Ebitda margin improved slightly from 27% to 29%. Chairman Samir Mehta said the company’s distribution franchisee business was impacted significantly due to the pandemic, while there was limited impact on the generation and licensed distribution business. Post lockdown and subsequent disruptions, it said the economic revival has resulted in an increase in demand for electricity in all its distribution areas, with demand in Q4FY 21 at higher levels than the comparable quarter of previous year. Separately, the matter regarding its suspended bid for 51% privatization of power distribution companies in Dadra and Nagar Haveli and Daman and Diu will be heard in the Supreme Court.

• Gujarat State Petronet: Appointed Rajiv Kumar Gupta, IAS as director on the board of the company.

• Zuari Agro Chemicals: Single super phosphate plant of the company in Mahad has resumed its operations with supply of raw materials having been tied up with a supplier. Nitrogen, phosphorus and potassium A plant has been shut down due to unavailability of raw materials.

• Sadbhav Infrastructure Projects: India Ratings has downgraded the credit rating of the company to BBB+ from A-.

• Coromandel International: Crisil revised the rating for the company's long term bank loan facilities from ‘stable’ to ‘positive’.

• Clariant Chemicals: Released its annual report. The company’s continued operations reported sales for FY21 of Rs 688.41 crore versus Rs 720 crore for the previous year. The company recorded a decline in sales by 4.4%. Of the total sales revenue for the year under review, 35% is contributed by exports. The company has resumed operations in a phased manner and during the quarter ended September 30, 2020, operations have gradually come back to normalcy. It said the balance sheet indicates financial stability and an evaluation of impact of COVID-19 on internal financial controls concluded that there is no major impact.

• NBCC (India): Informed that the company has secured a total business of Rs 206 crore in the month of June, 2021.

• Bank of Maharashtra: Approved the floor price of Rs 24.89 per equity share for its qualified institutional placement.

• Shriram Transport Finance: Approved and allotted 1,300 senior secured rated, listed, principal protected market linked, redeemable, non-convertible debentures of face value of Rs 10 lakh each on private placement basis. Issue size is of Rs 85 crores plus green shoe option of Rs 50 crores.

• Barbeque-Nation Hospitality: ICRA has upgraded the credit rating for the company’s bank facilities on a long-term scale to A- (stable). On the short-term scale, the rating assigned is A2+.

• IFB Industries: Released its annual report. The company posted a net revenue from operations at Rs 2,800 crore, up 6.2%. Profit before tax increased by 74.2% year-on-year to Rs 2,322.4 crore. The company said it achieved success despite a bleak performance in first quarter due to shut down on account of Covid-19. It added that the increase in margin is largely on account of favourable product mix, price hike, reduction in material cost, scheme cost and overheads.

• Cholamandalam Financial Holdings: Released its annual report. Ended FY21 with a total income stood at Rs 13,905 crore and profit after tax of Rs 1,764 crore. The NBFC subsidiary, Cholamandalam Investment and Finance Company closed the year with disbursements of Rs 26,043 crore and business assets under management of Rs 69,996 crore. Profit after tax grew by 44% to Rs 1,515 crore. Chairman MM Murugappan said FY21 was “extremely challenging” for the financial services industry, on account of the worldwide economic slowdown, coupled with stressed borrowers and a liquidity crunch in the market. He added that after battling disruptions during the first quarter, India's NBFCs grew at a slower pace in the second and third quarters of the year largely aided by the liquidity enhancing measures announced by the government.

• Indian Bank: Received requisite prior approval of RBI for exercise of call option on bank's Outstanding Basel III Tier 2 Bonds Series I aggregating to Rs 600 crore.

• Adani Enterprises: Adani Airport Holdings, a wholly owned subsidiary, has taken over the management control of Mumbai International Airport Limited from the GVK Group.

• Skipper: Acuite has rated the company’s long-term bank facilities as A- (stable) and short-term bank facilities as A2+.

• NIIT: Released its annual report. The company recorded a revenue of Rs 949.5 crore in FY21, up 7% year-on-year from Rs 889.2 crore. Ebitda more than doubled to Rs. 175.3 crore. Chairman Rajendra Pawar said it ssee a positive upswing in the future across all businesses. He said the strong balance sheet and liquidity position coupled with the opportunities opened up by large-scale digital disruption, have positioned NIIT as a leader in the spaces addressed by their corporate learning and skills and careers businesses.

• HDFC Bank: Meeting on July 17 to consider raising funds via foreign currency debt

• NMDC: Approves spinoff of NMDC Steel; NMDC Steel to issue equal number of shares they hold in the miner

• NTPC:Plans to build 4.75gw solar park in Gujarat

Earnings To Watch: Infosys, L&T Technology Services, 5Paisa Capital, Craftsman Automation, Dodla Dairy, Hatsun Agro Product, Raghav Productivity Enhancers, Tinplate Company of India.

IPO Watch

• Zomato Ltd. IPO at Rs 72-76/share open for sale, offer close July 16

  • The IPO got over 35 times more bids from anchor investors than it intended to sell in the issue

• Shri Bajrang Power and Ispat seeks SEBI approval for Rs 700 crore IPO

• India approves sale of LIC's mega IPO

Pledge Share Details

• JSW Holdings: Promoter Siddeshwari Tradex revoked a pledge of 89,000 shares on July 9.

• Steel Strips Wheels: Promoter Dheeraj Garg revoked a pledge of 1.5 lakh shares on July 12.

Insider Trades

• Nath Bio-Genes (India): Promoter Nath Royal Group bought 32,560 shares on April 28.

• Shriram Transport Finance: Promoter Shriram Capital bought 17.36 lakh shares on July 8.

Trading Tweaks

• Record Date Final Dividend: Syngene International, Salasar Techno Engineering

• Ex-Date Final Dividend: Tinplate Company of India, Mahindra EPC Irrigation, Laxmi Organic Industries, Moksh Ornaments, UPL, Zydus Wellness, Wendt (India), Rane Engine Valve, Bank of India

• Price Band Revised From 10% To 5%: Vascon Engineering

• Price Band Revised From 20% to 10%: Aditya Birla Money, Goodluck India, Vardhman Holdings

• Move Into Short-Term ASM Framework: Vardhman Holdings, SML Isuzu, Poddar Housing and Development, Hindcon Chemicals, Equitas Holdings, Steel Strips Wheels

• Move Into Long-Term ASM Framework: Siyaram Silk Mills, Visaka Industries, Worth Peripherals

• Move Out Of Short-Term ASM Framework: BSEL Infrastructure Realty, Happiest Minds Technologies

Money Market Update

Indian bond traders will be awaiting the release of wholesale price inflation data after a report earlier this week showed retail prices rose less than expected and Rs 17,000 crore ($2.3b) of Treasury-bill sale. The rupee may open lower in line with its Asian peers.

• Rupee investors will also watch infows from Zomato’s initial share sale which opens today

• 5.63% 2026 bond yield fell 3bps to 5.72% on Tuesday; new 6.1% 2031 bond yield steady at 6.11%, and that on old 10-year also down 2bps to 6.20%

• India’s long-term foreign currency debt rating was affirmed by S&P at BBB-, the lowest investment grade score, on expectation that the country’s recovery from a contraction in fiscal 2021 and a second wave of Covid-19 will gain pace in the second half of fiscal 2022 and into the following year

  • Outlook remains stable

  • “We envisage an increasingly steady rebound in activity taking hold during the second half of 2021, and we believe the Indian economy will remain a long-term outperformer versus peers with a similar level of income”

• USD/INR fell 0.1% to 74.4962 on Tuesday

  • Implied opening from forwards suggest spot may start trading around 74.60

F&O Cues

• Nifty July futures ended at 15,833.95; a premium of 21.6 points.

• Nifty July futures shed 1.16% and 2,174 shares in Open Interest

• Nifty Bank July futures ended at 35,744, a premium of 70.6 points

• Nifty Bank July futures shed 7.87% and 6,681 shares in Open Interest.

• Securities that continue to be in the ban list: Granules India, Vodafone Idea, Nalco, NMDC, PNB and SAIL.

• Securities added to ban list: Sun TV

• Securities removed from the ban list: Indiabulls Housing Finance