All You Need To Know Going Into Trade On July 30
U.S. equity futures retreated and Asian stocks were steady early Friday as traders weighed megacap technology earnings and risks from China’s crackdown on private industries.
Japan and South Korea edged down but Australian shares rose. Nasdaq 100 contracts shed about 1% as Amazon.com Inc. tumbled in extended trading on signs its rapid growth through the pandemic is waning.
The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, fell 0.4% at 15,779 as of 7 a.m.
Asia-Pacific stocks had jumped Thursday after Beijing tried to allay fears over regulatory curbs on private industries, but U.S.-listed Chinese equities later resumed declines.
S&P 500 futures also fell. The gauge rose overnight on data signaling scope for the Federal Reserve to keep policy ultra-loose. U.S. economic growth was solid while trailing estimates. Jobless claims dropped but were higher than forecast.
Ten-year U.S. Treasury yields trimmed an advance and a dollar gauge headed for its biggest weekly drop since May. Oil held gains and the Bloomberg Commodity Spot Index was at the highest in about a decade, bolstered by U.S. infrastructure spending plans and expectations that economic reopening will weather delta-strain Covid-19 outbreaks.
Data To Watch
4pm: India fiscal deficit in rupees for April-June period (prior 44,475)
5:30pm: Eight Infrastructure Industries Index for June (prior 16.8%)
Earnings Post Market Hours
Tech Mahindra Q1FY22 (Consolidated, QoQ)
Revenue up 5% at Rs 10,197.6 crore Vs Rs 9,729.9 crore (Bloomberg estimate: Rs 10,072.7 crore)
Net profit up 25% at Rs 1,353.2 crore Vs Rs 1,081.4 crore (Bloomberg estimate: Rs 1,216.2 crore)
Ebit at Rs 1,545.30 crore Vs Rs 1,553 crore (Bloomberg estimate: Rs 1,457.6 crore)
Margins at 15.2% Vs 16% (Bloomberg estimate: 14.47%)
Container Corporation of India Q1FY22 (Consolidated, QoQ)
Revenue down 7% at Rs 1,819.94 crore Vs Rs 1,956.69 crore
Net profit up 12.52 times at Rs 251.22 crore Vs Rs 18.58 crore
Ebitda up 1.24 times at Rs 438.20 crore Vs Rs 195.68 crore
Margins at 24.08% Vs 10%
TVS Motor Company Q1FY22 (Standalone, QoQ)
Revenue down 26% at Rs 3,934.36 crore Vs Rs 5,321.93 crore
Net profit down 82% at Rs 53.15 crore Vs Rs 289.24 crore
Ebitda down 49% at Rs 273.78 crore Vs Rs 536.11 crore
Margins at 7% Vs 10.1%
Ajanta Pharma Q1FY22 (Consolidated, QoQ)
Revenue down 1% at Rs 747.99 crore Vs Rs 756.84 crore
Net profit up 9% at Rs 173.75 crore Vs Rs 159.26 crore
Ebitda down 15% at Rs 220.21 crore Vs Rs 259.41 crore
Margins at 29.4% Vs 34.3%
Deepak Nitrite Q1FY22 (Consolidated, QoQ)
Revenue up 4% at Rs 1,526.22 crore Vs Rs 1,463.23 crore
Net profit up 4% at Rs 302.63 crore Vs Rs 290.11 crore
Ebitda down 1% at Rs 451.50 crore Vs Rs 454.66 crore
Margins at 29.58% Vs 31.07%
Indus Towers Q1FY22 (Consolidated, QoQ)
Revenue up 5% at Rs 6,797 crore Vs Rs 6,491.80 crore
Net profit up 4% at Rs 1,415.30 crore Vs Rs 1,363.70 crore
Ebitda up 3% at Rs 3,528.50 crore Vs Rs 3,412.40 crore
Margins at 51.91% Vs 52.56%
Motilal Oswal Financial Services Q1FY22 (Consolidated, QoQ)
Revenue down 21% at Rs 898.75 crore Vs Rs 1,140.95
Net profit down 51% at Rs 221.04 crore Vs Rs 448.14 crore
Ebitda down 40% at Rs 400.67 crore Vs Rs 664.59 crore
Margins at Rs 44.58% Vs 58.25%
Oberoi Realty Q1FY22 (Consolidated, QoQ)
Revenue down 64% at Rs 284.25 crore Vs Rs 790.08 crore
Net profit down 72% at Rs 80.63 crore Vs Rs 286.85 crore
Ebitda down 67% at Rs 124.87 crore Vs Rs 373.5 crore
Margins at 43.93% Vs 47.27%
Shriram City Union Finance Q1FY22 (Consolidated, QoQ)
NII down 1% at Rs 966.79 crore Vs Rs 979.23 crore
Net profit down 26% at Rs 220.18 crore Vs Rs 298.28 crore
Jindal Stainless (Hisar) Q1FY22 (Consolidated, QoQ)
Revenue down 11% at Rs 2,776.48 crore Vs Rs 3,102.77 crore
Net profit up 2% at Rs 358.06 crore Vs Rs 349.95 crore
Ebitda up 2% at Rs 412.32 crore Vs Rs 405.55 crore
Margins at 14.9% Vs 13.1%
Stocks To Watch
Kotak Mahindra Bank: Shareholders will see a significant shift in Kotak Mahindra Bank Ltd.'s approach, with "greater aggression" and sharper execution, Uday Kotak said in the annual report for 2020-21. “We'll not shy away from taking bolder bets,” he added. The private lender sees this as the right time to experiment more and concentrate on segments it deems as offering the best opportunities for returns. The bank will increase investments in strengthening its digital and technology platforms and offerings.
Privi Specialty Chemicals: Signed a joint venture agreement with Givaudan SA, the global leader in fragrance creation, to set up a new greenfield production facility in Mahad. The facility will have state of the art manufacturing equipment tailor made to manufacture small-volume fragrance ingredients of medium to high complexity, also known as specialty ingredients, the company said. Privi will hold 51% of the equity capital of the joint venture company.
Mangalore Refinery and Petrochemicals: Approved raising up to Rs 5,000 crore through issue of NCDs. Enhanced borrowing powers to Rs 33,500 crore from Rs 25,000 crore.
Hindalco Industries: CRISIL Ratings has upgraded its rating on the non-convertible debentures of the company to AA+/stable from AA/positive.
R Systems International: To consider share buyback on August 6.
Earnings: Sun Pharmaceutical Industries, UPL, Britannia Industries, Indian Oil Corporation, Bandhan Bank, Bharat Heavy Electricals, Dr. Lal PathLabs, Marico, JSW Energy, Kansai Nerolac Paints, PI Industries, Cholamandalam Investment and Finance Company, Aditya Birla Fashion and Retail, Macrotech Developers, Blue Dart Express, Exide Industries, Zydus Wellness, Equitas Small Finance Bank, Shriram Transport Finance Co., V-Guard Industries, India Grid Trust, Sunteck Realty, KEC International, Asahi India Glass, Fairchem Organics, Rossari Biotech, Finolex Industries, LT Foods, DCW, Gokaldas Exports, Gravita India, HIL, IFB Industries, Indo Amines, Jindal Saw, JK Paper, Nelco, NGL Fine-Chem, NIIT, Sundaram-Clayton, Sutlej Textiles & Industries, Welspun Specialty Solutions
AGMs: Tata Motors (3 p.m.); Axis Bank (10 A.M.); Blue Dart Express (4 p.m.); EIH Ltd. (11:30 a.m.); Zydus Wellness (10 a.m.)
Rolex Rings IPO gets 9.26 times shares demand on second day sale; offer close July 30
Glenmark Life’s $203 million IPO gets 44.2 times demand for shares offer
Devyani International Sets Rs 86-90/Share Price Band For $248 Million IPO
The initial public offering of Devyani International Ltd., operator of KFC, Pizza Hut and Costa Coffee stores in India, will raise as much as Rs 1,840 ($248 million), according to an advertisement in the Financial Express newspaper Friday.
The Indian franchise partner for Yum! Brands is raising Rs 440 crore selling new shares, while its holders will sell 155.3 million shares
Investors can bid for minimum 165 shares of face value Re 1 each in the sale, which opens Aug. 4 and closes Aug. 6
The company has reserved 550,000 shares in IPO for its employees
Kotak Mahindra Capital, CLSA India Pvt., Edelweiss Financial and Motilal Oswal Investment are managing the IPO
Ujjivan Financial Services: Aberdeen Asian Smaller Companies Investment Trust Plc sold 10.25 lakh shares (0.84%) at Rs 240.01 per share.
Tatva Chintan Pharma Chem: Plutus Wealth Management Llp bought 6.50 lakh shares at Rs 2,171.74 per share.
Orient Cement: Promoters (Central India Industries and Shekhavati Investments and Traders) revoked pledge of 88 lakh shares on July 26.
Who’s Meeting Whom
Multi Commodity Exchange of India: To meet ITUS Capital on August 2, GIC Pvt Ltd on August 4 and Ward Ferry Management on August 9.
Ex-Date Dividend: Century Enka, Nelcast, Srikalahasthi Pipes
Ex-Date Final Dividend: Hercules Hoists
Ex-Date Special Dividend: Larsen & Toubro Infotech
Record Date Final Dividend: Sobha, ICICI Bank, Delta Corp, Sudarshan Chemical Industries, Timken India, Gandhi Special Tubes, Andhra Paper
Record Date Interim Dividend: Stylam Industries
Record Date Bonus Issue: Power Grid Corporation of India
Record Date AGM: Rane Holdings
Move Into Short-Term ASM Framework: Arvind Fashions
Move Out Of Short-Term ASM Framework: RPSG Ventures
Price Band Revised From 10% To 5%: RSWM
Price Band Revised From 20% To 10%: Nitin Spinners
Money Market Update
Indian bond traders will watch for demand at a Rs 32,000-crore ($4.3b) debt sale on Friday after an auction had to be rescued by primary dealers last week.
NOTE: RBI hasn’t so far announced any purchase plan for liquid bonds since the rescue last week and recent buys through the govt securities acquisition program have been in illiquid papers
Yield on 6.1% 2031 bond rose 1bp to 6.20% on Thursday; 5.63% 2026 bond yield rose 2bps to 5.72%
USD/INR fell 0.1% to 74.2838 on Thursday
Implied opening from forwards suggest spot may start trading around 74.28
RBI to hold Rs 2 lakh crore of reverse repo auction on Friday
Nifty July futures ended at 15,812.00, a premium of 33.55 points
Nifty July futures added 51.85% and 60,262 shares in Open Interest
Nifty Bank July futures ended at 34,695.75, a premium of 4.25 points
Nifty Bank July futures shed 43.77% and 14,523 shares in Open Interest
Securities removed from the ban list: Vodafone Idea, Sun TV