All You Need To Know Going Into Trade On July 20
A global stocks selloff continued in Asia early Tuesday as the spread of the delta coronavirus variant stokes concerns about the resilience of the economic recovery and bolsters haven assets.
Equities fell in Japan, Australia and South Korea but the drops were orderly. U.S. contracts edged up after the S&P 500 fell the most in two months on a reversal of the reopening trade as cyclicals like energy and financial shares slid.
The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, fell 0.16% at 15,717 as of 6:55 a.m.
Long-term Treasury rates ticked up, after spiraling Monday to their lowest since February and flattening the yield curve. Ten-year yields climbed back above 1.2%. The dollar held gains while the yen steadied.
Oil stabilized after sinking on an OPEC+ deal to boost supply into 2022. Bitcoin traded just above the closely watched $30,000 level.
Geopolitical jitters also resurfaced on Monday after the U.S., the U.K. and their allies said the Chinese government has been the mastermind behind a series of malicious ransomware, data theft and cyber-espionage attacks against public and private entities -- including the sprawling Microsoft Exchange hack earlier this year.
Earnings Post Market Hours
HCL Technologies Q1FY22 (Consolidated, QoQ)
Revenue up 2% at Rs 20,068 crore Vs Rs 19,641 crore (Bloomberg Estimate: Rs 20,346 crore)
Net profit up 1.91 times at Rs 3,205 crore Vs Rs 1,102 crore (Bloomberg Estimate: Rs 3,245.2 crore)
Ebit up 20% at Rs 3,934 crore Vs Rs 3,282 crore (Bloomberg Estimate: Rs 4,132 crore)
Ebit margin at 19.6% Vs 16.7% (Bloomberg Estimate: 20.30%)
Revenue in dollar terms up 0.9% to $2,720 million
Declared an interim dividend of Rs 6 per equity share
IT services attrition (on last 12 months basis) stood at 11.8% versus 14.6% a year earlier and 9.9% as of March 2021
Maintained its revenue and EBIT margin guidance for the ongoing fiscal
Expects revenue to grow in double digits in constant currency in FY22, while Ebit margin is forecast to be between 19% and 21.0%
Won eight large services deals and four significant product deals across the industry verticals of oil and gas, financial services and technology
Appointed Shiv Nadar as Chairman Emeritus and strategic advisor to the board
Appointed C Vijayakumar, President and Chief Executive Officer, as the Managing Director
ACC Q2 (Standalone, QoQ)
Revenue down 9.5% at Rs 3,884.8 crore Vs Rs 4,291.9 crore (Bloomberg Estimate: Rs 3,705.3 crore)
Net profit down 4.2% at Rs 533.8 crore Vs Rs 557.4 crore (Bloomberg Estimate: Rs
Ebitda up 1.8% at Rs 874.7 crore Vs Rs 859.4 crore (Bloomberg Estimate: Rs 726.4 crore)
Margins at 22.5% Vs 20.02%
Nippon Life India Asset Management Q1FY22 (Consolidated, QoQ)
Revenue at Rs 302.27 crore Vs Rs 301.90 crore
Net profit up 9% at Rs 181.54 crore Vs Rs 166.77 crore
Assets under management was Rs 3,78,769 crore
Stocks To Watch
BPCL: Government’s plan to sell a majority stake in the country’s second-biggest state refiner has slowed down amid the coronavirus pandemic, according to a Bloomberg report. The discussion with investors on the stake sale of BPCL, from which the government could fetch about $6.9 billion, haven’t progressed much recently, according to the report. The disposal may take place as soon as early next year.
Jindal Stainless and Tata Steel Mining signed a MoU on July 16 to jointly unearth the Chrome Ore locked up in the boundary between their mines located in Sukinda of Jajpur district, Odisha.
City Union Bank: Approved raising capital through QIP of Rs 500 crore.
IndusInd Bank: Board to meet on July 23 to consider the proposal of raising funds through debt securities or equity instruments or convertible debt securities.
Zen Technologies: Secured export order of Rs 120 crore. The simulators are the main focus of the order. The order will be carried out in roughly a year, the company said.
Earnings: Asian Paints, Bajaj Finance, Syngene International, Crisil, DCM Shriram, ICICI Prudential Life Insurance Company, ICICI Securities, India Tourism Development Corporation, JSW Ispat Special Products, Jubilant Ingrevia, Mangalam Organics, Moschip Technologies, Network18 Media & Investments, Newgen Software Technologies, Reliance Industrial Infrastructure, Shyam Metalics and Energy, SVP Global Ventures, Thirumalai Chemicals, Tv18 Broadcast
Pledge Share Details
Gati: Promoters (Jubilee Commercial and Trading and Bunny Investments and Finance) revoked pledge of 3.15 lakh shares on July 13.
As reported on July 19.
Bajaj Hindusthan Sugar: Topgain Finance bought 59.93 lakh shares (0.53%) at Rs 18.2 per share.
Clean Science and Technology: Nomura India Investment Fund bought 10 lakh shares at Rs 1,715.33 per share.
GR Infraprojects: The Nomura Trust and Banking Co. bought 5 lakh shares at Rs 1,714.6 per share.
Just Dial: Tree Line Asia Master Fund (Singapore) Pte sold 8.85 lakh shares (1.42%) at Rs 1,041.15 per share and sold another 9.01 lakh shares (1.45%) at Rs 1,025.06 per share. Plutus Wealth Management LLP bought 9 lakh shares (1.45%) at Rs 1,022.13 per share.
Unitech: IL&FS Financial Services sold 1.53 crore shares (0.59%) at Rs 2.08 per share.
Vishwaraj Sugar Industries: Basavaraj Mahashetti sold 1.96 lakh shares (0.52%) at Rs 142.01 per share.
Rossari Biotech: Public Sector Pension Investment Board bought 1.66 lakh shares (0.30%) at Rs 1,249.5 per share. IIFL Special Opportunities Fund Series 4 sold 1.66 lakh shares (0.30%) at Rs 1,249.5 per share.
Who’s Meeting Whom
Allcargo Logistics: To meet Abakkus Asset Managers on July 20.
Wardwizard Innovations & Mobility: To attend an investor conference with Maitreya Capital Advisors on July 20.
IOL Chemicals and Pharmaceuticals: To meet Franklin Templeton Asset Management (India) on July 20.
Ex-Date Final Dividend: Blue Dart Express, Great Eastern Shipping Co, Indian Metals & Ferro Alloys, Dr Lal PathLabs, Orient Electric, Saint-Gobain Sekurit India, Sharda Cropchem, Shriram City Union Finance, TCI Express
Ex-Date Dividend: Deepak Nitrite, Jyothy Labs
Record Date Dividend: NIIT, Glaxosmithkline Pharmaceuticals
Price Band Revised From 10% To 5%: Xelpmoc Design and Tech
Price Band Revised From 20% To 10%: Angel Broking, Datamatics Global Services, Happiest Minds Technologies
Price Band Revised From 20% To 5%: Zuari Agro Chemicals
Move Into Short-Term ASM Framework: Wheels India
Move Out Of Short-Term ASM Framework: Vidhi Specialty Food Ingredients, Tilaknagar Industries, SP Apparels
Move Into ASM Framework: SP Apparels, Nahar Polyfilms, DCM Shriram
Money Market Update
The rupee ended at 74.87 against the U.S. Dollar on Monday as compared to Friday's closing of 74.56.
Nifty July futures ended at 15,761.30, a premium of 8.9 points
Nifty July futures shed 3.97% and 7,502 shares in Open Interest
Nifty Bank July futures ended at 35,178.40, a premium of 99.2 points
Nifty Bank July futures added 3.21% and 2,656 shares in Open Interest
Securities that continue to be in ban list: Indiabulls Housing Finance, NMDC, PNB, SAIL, Sun TV
Securities added to the ban list: Cadila Healthcare, Nalco
Securities removed from the ban list: Vodafone Idea