All You Need To Know Going Into Trade On July 28
Asian stocks followed Wall Street lower at the open Wednesday as a rout in China spurs caution and U.S. megacap technology earnings receive a mixed response.
Equities slipped modestly in Japan, Australia and South Korea. Futures rose in Hong Kong, but investors remain wary after stocks there plunged on a regulatory crackdown that’s stirring questions about how far Beijing will go to curb big companies.
The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, rose 0.12% at 15,761.50 as of 7:20 a.m.
Chinese shares in the U.S. have succumbed to a record drop, the offshore yuan has weakened and China’s sovereign bonds have retreated.
U.S. contracts pared losses following the tech-heavy Nasdaq 100’s biggest decline in more than two months as major American equity indexes fell. Elsewhere, oil was trading around $72 a barrel and Bitcoin at about $39,000.
Earnings Post Market Hours
IndusInd Bank Q1FY22 (Consolidated)
Net Profit up 99.2% at Rs 1,016 crore Vs Rs 510 crore (YoY) (Bloomberg estimate: Rs 802 crore)
NII up 7.7% at Rs 3,564 crore Vs Rs 3,309 crore (YoY) (Bloomberg estimate: Rs 3,569 crore)
GNPA at 2.88% Vs 2.67% (QoQ)
NNPA at 0.84% Vs 0.69% (QoQ)
Provisions down 1.6% at Rs 1,844 crore Vs Rs 1,865.59 crore(QoQ)
Added Rs 2,762 crore worth bad loans
Write offs stood at Rs 938 crore
Bad loans amounting to Rs 845 crore were upgraded and Rs 589 crore was recovered
Sold a Rs 830-crore bad loan for Rs 400 crore to an asset reconstruction company during the quarter
Deposits up 26% at Rs 2.67 lakh crore Vs Rs 2.11 lakh crore (YoY)
IndiGo Q1FY22 (Consolidated, QoQ)
Revenue down 52% at Rs 3,006.90 crore Vs Rs 6,222.90 crore (Bloomberg Estimate: Rs 3,190 crore)
Net loss at Rs 3,179 crore Vs Rs 1,159 crore (Bloomberg Estimate: Rs 1,979 crore loss)
Ebitda loss of Rs 1,418 crore Vs Ebitda gain of Rs 616 crore (Bloomberg Estimate: Rs 214 crore)
Basic earnings per share was negative Rs 82.47
Total debt stood at Rs 31,690.10 crore
Total cash balance at Rs 17,067.90 crore
Torrent Pharmaceuticals Q1FY22 (Consolidated, QoQ)
Revenue up 10% at Rs 2,134 crore Vs Rs 1,937 crore (Bloomberg estimate: Rs 2,169 crore)
Net profit up 2% at Rs 330 crore Vs Rs 324 crore (Bloomberg estimate: Rs 359 crore)
Ebitda up 16% at Rs 677 crore Vs Rs 582 crore (Bloomberg estimate: Rs 679 crore)
Margins at 31.7% Vs 30% (Bloomberg estimate: 31.3%)
Granules India Q1FY22 (Consolidated, QoQ)
Revenue up 6% at Rs 849.84 crore Vs Rs 799.31 crore
Net profit down 6% at Rs 120.20 crore Vs Rs 127.56 crore
Ebitda flat at Rs 201.42 crore Vs Rs 201.99 crore
Margins at 23.7% Vs 25.3%
Declared first interim dividend of 0.25 paise per share
Growth was driven by new launches and increased market share for existing products
Dalmia Bharat Q1FY22 (Consolidated, QoQ)
Revenue down 18% at Rs 2,589 crore Vs Rs 3,146 crore
Net profit down 64% at Rs 227 crore Vs Rs 627 crore
Ebitda down 8% at Rs 704 crore Vs Rs 765 crore
Margins 27.2% Vs 24.3%
Karnataka Bank Q1FY22 (Consolidated)
NII up 7% at Rs 574.79 crore Vs Rs 535.12 crore (YoY)
Net profit down 46% at Rs 105.91 crore Vs Rs 196.38 crore (YoY)
GNPA at 4.82% Vs 4.91% (QoQ)
NNPA at 3% Vs 3.18% (QoQ)
Provisions up 7.6% at Rs 368.08 crore Vs Rs 341.83 crore
Godawari Power & Ispat Q1FY22 (Consolidated, QoQ)
Revenue down 9% at Rs 1,126.18 crore Vs Rs 1,236.64 crore
Net profit up 39% at Rs 472.07 crore Vs Rs 340.38 crore
Ebitda up 22% at Rs 573.13 crore Vs Rs 469.62 crore
Margins 50.9% Vs 38%
Approved interim dividend of Rs 5 per share
Approved investment up to Rs 70.20 crore for acquisition of additional equity shares proposed to be offered by Hira Ferro Alloys Limited on preferential basis to GPIL
To set up integrated steel plant with a capacity of 1.5 to 2 Million Tons of Flat Products in Chhattisgarh under PLl Scheme
Stocks To Watch
GMR Infrastructure: Groupe ADP and GMR Group have executed industrial partnership, demonstrating their intent to cooperate with each other and a shared global vision for the airport sector. The objective of this strategic partnership is to leverage on each party's expertise and resources, with a view to improve service level and product offering to passengers and airlines, the company said.
Housing and Urban Development Corporation: Government of India’s offer-for-sale in HUDCO gets 196% demand from non-retail investors on the first day. Bids receive at indicative price of Rs 45.03 per share versus floor price of Rs 45. Government will exercise option for selling additional 5 crore shares in the offer, taking the total size to 16.01 crore shares, or 8% of the company’s equity. The OFS for retail investors opens today.
L&T: To merge L&T Hydrocarbon Engineering, a wholly-owned subsidiary of the company, with itself. The scheme is subject to necessary statutory and regulatory approvals. L&T and L&T Hydrocarbon Engineering are in similar lines of business that can be combined for creation of a much stronger energy portfolio, the company said.
Axis Bank: The right of Bain to appoint Nominee Director has been extended for a further period of 3 years. As per the 2017 investment agreement between the bank and BC Asia Investments VII Limited, Integral Investments South Asia IV and BC Asia Investments III, Bain was given the right to jointly appoint one non-retiring non-executive director on the Board of Directors of the bank for a period of 4 years, from December 19, 2017. The bank on Tuesday approved the amendment to this investment agreement.
Jammu and Kashmir Bank: The Reserve Bank of India has allowed the Government of Union Territory of Ladakh to acquire 4.58 crore fully paid-up equity shares of Re 1 each, representing 8.23% of the paid-up equity capital of Jammu and Kashmir Bank.
RITES: Secured a road sector consultancy work order of Rs 19.10 crore from National Highways and Infrastructure Development Corporation.
Cyient: Cyient Australia Pty, a wholly-owned subsidiary of the company, to acquire 100% stake in Workforce Delta, a global consultancy company, for $2.7 million. The acquisition is expected to be completed within one week.
SBI, Axis Bank, Indian Bank, Bank of Baroda, Kotak Mahindra Bank, IndusInd Bank, PNB and RBL Bank have each subscribed to 50,000 equity shares of IBBIC Private Limited, representing 5.55% of the issued and paid-up capital of the company, at Rs 10 each aggregating to Rs 5 lakh on July 26.
Bajaj Healthcare: Board to consider stock split in August 13 meeting.
KPR Mill: Approved sub-division of one equity share of Rs 5 each fully paid-up into five equity shares of Re 1 each fully paid up, subject to the approval of the members of the company.
Astec LifeSciences: Temporarily halted operations at manufacturing units in Mahad due to flooding, caused by continuous rains in the Raigad district in Maharashtra.
Filatex India: To increase polycondensation capacity by 50 TPD and put-up additional manufacturing facilities for 120 TPD of Polyester Partially Oriented Yarn at Dahej plant. The company presently has polycondensation capacity of 1,050 TPD. The expansion will cost company Rs 130 crore and is expected to be completed in 12 months. The company will also replace two existing POY lines (144 ends) with two new POY lines (192 ends) along with replacing winders in one POY line with new winders. The company presently has yarn manufacturing net capacity of 110 TPD at its plant at Dadra. This proposed project will increase the POY capacity of the plant by 5 TPD. The project will cost company Rs 8 crore.
Earnings: Maruti Suzuki India, Nestle India, IDBI Bank, United Breweries, Central Bank of India, Coforge, Oracle Financial Services Software, Embassy Office Parks REIT, Happiest Minds Technologies, ABB India, SRF, Mahanagar Gas, Apcotex Industries, JM Financial, Route Mobile, Pfizer, Birlasoft, UTI Asset Management Company, Wabco India, Welspun India, Century Textiles & Industries, Intellect Design Arena, Tata Coffee, Gateway Distriparks, Grindwell Norton, Geojit Financial Services, Greenpanel Industries, Heritage Foods, HSIL, ICRA, Mahindra Lifespace Developers, Mold-Tek Packaging, MPS, Radico Khaitan, Ramco Systems, RPG Life Sciences, Sagar Cements, SIS, TCI Express, TeamLease Services, Usha Martin
India OFS in Hudco to non-retail gets 196% demand on day-1 sale; offer for retail investors opens today.
Rolex Rings IPO at Rs 880-900/share open for sale; offer close July 30
Glenmark Life Sciences IPO fully subscribed, gets 278% demand on first day sale; offer close July 29
Pledge Share Details
Hatsun Agro Product: Promoters RG Chandramogan and C Sathyan revoked pledge of 24.70 lakh shares on July 27.
As reported on July 27.
Himadri Speciality Chemical: BC India Investments sold 25 lakh shares (0.60%) at Rs 52.50 per share.
Punjab Alkalies & Chemicals: Plutus Wealth Management LLP bought 2.50 lakh shares (0.57%) at Rs 114.44 per share.
Ex-Date Final Dividend: L&T, Mrs. Bectors Food Specialities, Cadila Healthcare, Computer Age Management Services, Prataap Snacks, Godfrey Phillips India, Granules India, Orient Cement
Ex-Date Dividend: V-Guard Industries
Record Date Final Dividend: Pidilite Industries, Lupin, EPL
Record Date Dividend: Gabriel India
Record Date Interim Dividend: HCL Technologies
Price Band Revised From 20% To 10%: Wheels India
Move Into Short-Term ASM Framework: Schaeffler India, Indo Count Industries
Money Market Update
Indian bond traders will await a Rs 17,000 crore ($2.3 billion) sale of Treasury bills to gauge the direction of short-term rates. The rupee is likely to be ranged ahead of the Fed outcome later on Wednesday.
USD/INR rose 0.1% to 74.4637 on Tuesday
Implied opening from forwards suggest spot may start trading around 74.48
Yield on 6.1% 2031 bond rose 1bp at 6.18%; 5.63% 2026 bond yield also up 1bp at 5.69%
India’s economic growth estimate for 2021 were slashed by 3 percentage points to 9.5% by the International Monetary Fund
The government collected a net Rs 2.46 lakh crore in the first quarter of the current fiscal year from direct taxes, compared with Rs 1.17 lakh crore a year earlier, junior finance minister Pankaj Chaudhary told Parliament in a written reply on Tuesday
Global funds sell net Rs 1,460 crore of India Stocks Tuesday: NSE
They bought Rs 28 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 325 crore of corporate debt
State-run banks bought Rs 395 crore of sovereign bonds on July 27: CCIL data. Foreign banks bought Rs 2,340 crore of bonds
Nifty July futures ended at 15,733.90; a discount of 12.55 points.
Nifty July futures shed 15.15% and 23,715 shares in Open Interest
Nifty Bank July futures ended at 34,817.20; a premium of 19.75 points
Nifty Bank July futures added 5.80% and 3,160 shares in Open Interest
Securities that continue to be in ban list: Vodafone Idea, SAIL
Securities removed from the ban list: Canara Bank, Nalco