All You Need To Know Going Into Trade On July 19

Asian stocks and U.S. futures fell early Monday on concerns about the impact of elevated inflation and Covid-19 outbreaks on economic prospects.

Shares fell in Japan, Australia and South Korea. U.S. futures dropped after the S&P 500 fell for the first week in four. The rally in Treasuries continued, sending 10-year yields further below 1.3%.

The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, fell 1.3% to 15,728 as of 7:15 a.m.

Oil slipped after OPEC+ agreed to boost production into 2022, resolving an internal dispute that had shaken the alliance. The yen advanced and the dollar was steady amid cautious sentiment.

Elsewhere, the pound was steady with the U.K. government due to lift remaining virus curbs in England. At the same time, Prime Minister Boris Johnson agreed to self isolate after being exposed to Covid-19.

Earnings Post Market Hours

HDFC Bank (Q1FY22, Consolidated, QoQ)

• Net profit Rs 7,729.62 crore vs estimate Rs 7,931 crore.

• Net interest income Rs 17,009 crore vs. estimate Rs 17,634 crore

• GNPA: 1.47% vs 1.32% (QoQ)

• NNPA: 0.48% vs 0.4% (QoQ)

• Advances rose 14.4% YoY to Rs 11.47 lakh crore.

• Been through unprecedented times last year and even this financial year, Sashidhar Jagdishan, MD & CEO, HDFC Bank said. He said the these are the worst of times the bank could have been through but the results were "reasonably healthy".

Justdial (Q1FY22, Consolidated, QoQ)

• Loss of Rs 3.52 crore vs profit of Rs. 33.57 crore

• Revenue down nearly 6% at Rs 165.4 crore vs Rs 175.7 crore

• To optimize discretionary costs, the company had curtailed its advertising spends in FY21.

• However, advertising spends accelerated to nearly Rs 50 crore during Q1FY22 to promote the newly launched B2B platform, JD Mart.

• The second wave restrictions impacted collections during Q1FY22, which stood at Rs 142.6 crores, down 28.9% QoQ.

• Traffic and monetisation should recover hereon with COVID second wave impact abating, the company said.

Stocks To Watch

• Punjab Chemicals and Crop Protection: Released its annual report. Posted a consolidated revenue growth of 23% year-on-Year to Rs 678.2 crore in FY21. Ebitda also rose 75% at Rs 97.3 crore during the year. Profit after tax for the year stood at Rs 49.1 crore. A dividend of Rs 2 per share for the fiscal was also declared.

• Tata Power, HPCL: The two firms have partnered to provide end-to-end EV charging stations at HPCL’s petrol pumps in multiple cities and major highways across the country.

• Dr Reddy’s/Lupin: Bristol-Myers settles two patent suits on blockbuster Sprycel

• Sintex: Said damage caused due to Cyclone Tauktae at the company’s plant at Lunsapur, Gujarat affected capacity utilization. It added that restoration work is in progress and 50% of capacity utilization has been achieved.

• SMC Global Securities: Released its annual report. Chairman Subhash Chand Aggarwal said the year under review was the “most challenging” for the industries and businesses all over the world. He added that operations of some essential service providers including securities market intermediaries being allowed to operate with limited onsite capacity helped the company continue its operations.

• Kirloskar Group: Kirloskar Oil Engines, Kirloskar Chillers, Kirloskar Pneumatic, Kirloskar Ferrous Industries and Kirloskar Industries have undertaken a refresh, spanning business vision, offerings, technology, brand articulation and employee practices. The “refresh” will span over eight business areas, laying the foundation for plans in the B2C domain whilst continuing to power growth in the B2B companies. This will include large investments over two to three years across all business lines. This also involves infusion of new technologies, apart from new offerings including real estate and NBFC.

• Shree Cement: Released its annual report. The company posted 35.4% growth in revenue and 30.4% growth in Ebitda during the second half of FY21 compared to first half of the year, leading to overall annual revenue growth of 5.7% and Ebitda growth of 11.8% year-on-year. The company also plans to achieve 80 million tonnes per annum capacity by 2030.

• Century Plyboards India: Increased its shareholding in Century Infotech from 60.06% to 99.81% consequent upon acquisition of 19,85,280 shares from other existing shareholders.

• Bank of Maharashtra: The bank closed the offer period of qualified institutional placement. It received Rs 403.7 crore in funds from eligible qualified institutional buyers. The bank had issued shares at a price of Rs 23.7 per share, a 4.78% discount to the floor price of Rs 24.89 it had determined.

• AstraZeneca Pharma India: Released its annual report. The company’s sales fell to Rs 776.8 crore as against last year’s sales of Rs 801.3 crore. The company said performance for the current year was impacted mainly due to loss of exclusivity of Ticagrelor (Ex-Tica Growth of 9.3%). In addition, the global pandemic also led to significant impact on the healthcare industry resulting in drastic reduction in patient footfall in hospitals coupled with postponement of elective procedures by the patients.

• Prism Johnson: India Ratings and Research has assigned A+ (stable) to the company’s long-term issuer rating, NCDs, term loans, fund-based limits. It has assigned an A1+ rating to its non-fund-based working capital limits, unsecured short-term loans and commercial paper programme. It has assigned an AA- rating to its term deposit programme.

• Patel Engineering: Approved the allotment of 1.37 crore equity shares at a price of Rs 14.78 per share to Canara Bank, aggregating to Rs 20.36 crore.

• Matrimony.com: Released its annual report. The company reported a revenue of Rs 377.87 crore during the year, a growth of 1.63% year on year. Ebitda stood at Rs 70.58 crore, an increase of 25.99%. The company’s consolidated net profit was at Rs 40.77 crore, an increase of 38.05%. It added that it sw an impact on billing in the last 2 weeks of March 2020 in the matchmaking business. This affected the business in Q1 of FY21, where it declined 14.32% quarter-on-quarter. It added that it saw a big uptick in paid profiles.

• Indian Overseas Bank: Released its annual report. The bank said it has posted a net profit of Rs 831 crore for the fiscal year after continuously posting net losses during the last 6 years. Gross NPA has also substantially reduced from Rs 19,913 crore to Rs 16,323 crores.

• Nesco: Released its annual report. The company’s consolidated turnover fell to Rs 355.69 crore from Rs 474.27 crore. Profit before tax for the year also fell to Rs 216.30 crore as compared to Rs 292.28 crore. A dividend of Rs 3 per equity share was recommended.

• AkzoNobel India: Released its annual report. Revenue from operations for the year fell 9% to Rs 2421.4 crore while profit fell 12.5% to Rs 207.6 crore. The company said the fiscal was unprecedented and that external variables like Covid-19 impacted economic growth, demand, commodity price and currency movement.

• Justdial, Reliance Retail Ventures: Reliance Industries Ltd.’s retail unit agreed to buy majority stake in local search and listings firm Just Dial Ltd. for Rs 5,719 crore. Reliance Retail Ventures Ltd. will acquire 25.35% via preferential allotment of 2.11 crore shares at Rs 1,022.25 apiece, totalling Rs 2,164.9 crore, according to an exchange filing. The preferential issue will be at a 4.9% discount to Friday's closing price of Rs 1,073 apiece.

• Future Consumer: National Company Law Tribunal, Mumbai Bench has allowed the scheme of arrangement between Athena Life Sciences and Future Consumer.

• Rossari Biotech: To buy Tristar Intermediates for Rs 120 crore value

• Sundaram Finance: Plans up to Rs 500 crore two-part bond sale

• Scheduled Earnings: Mangalam Cement (July 18), HCL Technologies, ACC, Allsec Technologies, Alok Industries, GTPL Hathway, HDFC Life Insurance Company, Indian Bank, Mastek, Nippon Life India Asset Management, PSP Projects, Supreme Petrochem, Swaraj Engines

IPO Watch

• Zomato's Rs 9,375 crore-issue was subscribed 40.55 times on day 3.

• Tatva Chintan Pharma Chemicals' Rs 500-crore IPO subscribed 4.5 times on day 1.

Listing Alert

• GR Infraprojects’ shares to start trading after IPO gets 102.6 times demand for shares offered

• Clean Science and Technology’s shares to start trading after IPO gets 93 times demand for shares on sale

Brokerage Radar

• Marico Cut to Add at ICICI Securities; price target Rs 560

• HDFC AMC Cut to Add at ICICI Securities; price target Rs 3,284

• Burger King India rated new Buy at Motilal Oswal Securities

• Just Dial raised to Add at Spark Capital Advisors

• Havells India raised to Buy at Batlivala & Karani

• JB Chemicals rated new Add at InCred; price target Rs 2,105

• Mindspace Business Parks REIT raised to Buy at ICICI Sec

Pledge Share Details

• Adani Enterprises: Promoter Gautam S. Adani / Rajesh S. Adani (on behalf of S.B. Adani Family Trust) created a pledge of 21.3 lakh shares on July 14.

• Adani Ports and Special Economic Zone: Promoter Gautam S. Adani / Rajesh S. Adani (on behalf of S.B. Adani Family Trust) created a pledge of 2.69 crore shares on July 14.

• Adani Transmission: Promoter Gautam S. Adani / Rajesh S. Adani (on behalf of S.B. Adani Family Trust) created a pledge of 22.7 lakh shares on July 14.

• Adani Green Energy: Promoter Gautam S. Adani / Rajesh S. Adani (on behalf of S.B. Adani Family Trust) created a pledge of 22.5 lakh shares on July 14.

Insider Trades

Reliance Power: Promoter Reliance Infrastructure Limited acquired 59.5 crore shares and 73 crore warrants on July 15 via preferential offer.

Who’s Meeting Whom

• Eicher Motors: To meet AIA International on July 19.

Trading Tweaks

• Record Date Final Dividend: Pressman Advertising, Redington (India), Rane Brake Lining

• Ex-Date Final Dividend: NIIT, Tide Water Oil Company (India)

• Price Band Revised From 10% To 5%: Biofil Chemicals & Pharmaceuticals, Emami Realty, Manaksia Steels

• Price Band Revised From 20% to 10%: Avro India, Central Depository Services (India), Shyam Century Ferrous, TARC

• Move Into Short-Term ASM Framework: Emkay Global Financial Services, ABM International, Manaksia Steels, HB Stockholdings, GKW, Biofil Chemicals & Pharmaceuticals

• Move Into Long-Term ASM Framework:Precision Camshafts, Nitin Spinners, Cybertech Systems and Software, Sobha, Marvel Decor

• Move Out Of Short-Term ASM Framework: Vineet Laboratories

Money Market Check

The rupee could be supported by easing oil prices after the currency posted two successive weeks of gains. Bond traders will closely watch the central bank’s conversion of shorter bonds to longer maturities and the sale of Rs 9,700 crore ($1.3 billion) of state government debt

• USD/INR little changed at 74.5612 on Friday

  • Implied opening from forwards suggests spot may start trading around 74.64

• 10-year yields rose 2bps to 6.21% on Friday while shorter yields dropped as the federal government kept its borrowing plan unchanged

• India will convert Rs 10,000 crore ($1.3b) of bonds into longer-term debt via switch auction

  • Government will convert five bonds maturing in 2022, 2023 and 2024 into securities due 2033 and 2035

F&O Cues

• Nifty July futures ended at 15,938.75 ; a premium of 15.3 points.

• Nifty July futures shed 3.16% and 6,175 shares in Open Interest

• Nifty Bank July futures ended at 35,852; a premium of 100.2 points

• Nifty Bank July futures added 5.17% and 4,064 shares in Open Interest.

• Securities that continue to be in the ban list: Indiabulls Housing Finance, Vodafone Idea, NMDC, PNB, SAIL, Sun TV

• Securities removed from ban list: Granules India, Nalco