All You Need To Know Going Into Trade On July 9

Asian shares followed U.S. equities lower Friday on growing anxiety that the spread of Covid-19 variants could hamper the global economic recovery.

Stocks fell in Japan, Australia and South Korea. Futures were steady in Hong Kong, where a key gauge of Chinese stocks is near a bear market.

U.S. contracts fluctuated after the S&P 500 and Nasdaq 100 retreated from records. Economically-sensitive sectors such as industrials and materials led Wall Street lower.

The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, was little changed at 15,698 as of 7:05 a.m.

Oil rebounded after a U.S. government report showed rapidly declining inventories and record-high fuel demand in the midst of the peak summer travel season. Bitcoin has fallen back toward the lower end of a trading range amid a pull back in cryptocurrencies.

In the culmination of an 18-month review published Thursday, ECB policy makers raised their inflation target to 2% and said they would tolerate moderate overshoots. In China, authorities have signaled they may soon unleash more support for the economy, an unexpected shift in tone that suggests the world’s fastest pandemic recovery may be weaker than it appears.

Earnings Post Market Hours

TCS (Q1FY22, Consolidated, QoQ)

• Revenue up 3.9% at Rs 45,411 crore vs Rs 43,705 crore (Bloomberg estimate: Rs 45,767 crore)

• Net profit down 2.6% at Rs 9,008 crore vs Rs 9,246 crore (Bloomberg estimate: Rs 9,397 crore)

• Operating margin at 25.5%, expansion of nearly 2% YoY

• Declared an interim dividend of ₹7 per equity share

• Order book up 17.3% YoY at $8.1 billion

• Attrition inched up to 8.3%
  

Stocks To Watch

• Mahindra and Mahindra Financial Services: Completed the acquisition of 20% of the Equity Share Capital of Ideal Finance Limited from its existing shareholders, resulting in an increase in MMFSL’s stake in Ideal Finance from 38.20% to 58.20%.

• Bank of Baroda: Appointed Alok Vajpeyi as shareholder director of the bank. The board has also approved raising up to Rs 2,000 crore.

• Tata Steel: CARE Ratings revised the company’s long-term credit rating from AA/Negative to AA+/Outlook.

• Aban Offshore: Received possession notice for its assets from Punjab National Bank, Chennai for the recovery of loan borrowed by the company.

• Bharat Dynamics: Signed a contract worth about Rs 499 crore with Ministry of Defence for manufacture and supply of Akash Missiles to the Indian Air Force. With this contract the company’s order book position now stands at about Rs 8,683 crore.

• Tata Motors has signed a two-year MoU with Jammu & Kashmir Bank, to offer easy financing options to its customers.

• Earnings to watch: Delta Corp, Madhucon Projects

IPO Watch

• Ant-Backed Zomato sets Rs 72-76/share price-band for Rs 9375 crore IPO, issue open July 14-July 16

• GR Infraprojects IPO fully subscribed, gets 5.75 times demand on second day sale, offer closes July 9

• Clean Science & Technology IPO fully subscribed, gets 4.28 times demand on secondday sale, offer closes July 9

Pledge Share Details

• Adani Ports and SEZ: Promoter Group (Gautam Adani and Rajesh Adani) created a pledge of 1 lakh shares on July 7.

• Adani Transmission: Promoter Group (Gautam Adani and Rajesh Adani) created a pledge of 3.50 lakh shares on July 7.

• Dilip Buildcon: Promoters (Dilip Suryavanshi and Devendra Jain) revoked pledge of 2.44 lakh shares between June 29 and July 7.

• Apollo Hospitals Enterprise: Promoters (PCR Investments and Preetha Reddy) revoked pledge of 23 lakh shares between July 5-7.

• Max Financial Services: Promoter Max Ventures Investment Holdings created a pledge of 22.01 lakh shares on July 6.

• Ramco Industries: Promoter Saradha Deepa revoked pledge of 2.50 lakh shares on June 16.

• The Ramco Cements: Promoter Saradha Deepa revoked pledge of 10.48 lakh shares between June 16 and July 7.

  As reported on July 8.

Who’s Meeting Whom

• HPL Electric & Power: To meet Abakkus Asset Management on July 9.

• Dixon Technologies (India): To meet FMR and Blue Coast Capital on July 9.
  

Trading Tweaks

• Ex-Date Final Dividend: Trent, Dr. Reddy's Laboratories, Control Print, Kirloskar Pneumatic, Navin Fluorine International

• Record Date Final Dividend: Fineotex Chemical, DCM Shriram

• Record Date Dividend: Crompton Greaves Consumer Electricals, Indian Bank

• Price Band Revised From 10% To 5%: Gulshan Polyols, HFCL, Newgen Software Technologies

• Move Into ASM Framework: Southern Petrochemicals Industries Corporation, Dynamatic Technologies

Money Market Update

Indian bond traders will await the results of a sale of new 10-year bond Friday to see at what cutoff yield level the central bank auctions the security. RBI plans to sell Rs 26,000 crore ($3.5 billion) of government bonds, including Rs 14,000 crore of a new benchmark 10-year bond maturing in 2031.

• 10-year yields fell 4bps to 6.13% on Thursday; while the current benchmark coupon was set at 5.85%, five traders surveyed by Bloomberg expects the central bank to sell the new bond at a cutoff yield of 6.1% at Friday’s auction

• “Given the RBI’s focus on keeping yields around 6% and market already pricing-in higher cutoff yields for the new paper, it’s a possibility that the RBI is poised for another round of tussle,” says Madhavi Arora, lead economist at Emkay Global Financial Services.“The RBI will have less sway over the 10-year yields initially”

• USD/INR rose 0.1% to 74.7137

  • Implied opening from forwards suggest spot may start trading around 74.70

F&O Cues

• Nifty July futures ended at 15,731; a premium of 3.1 points.

• Nifty July futures added 5.85% and 11,019 shares in Open Interest

• Nifty Bank July futures ended at 35,425; a premium of 150.9 points

• Nifty Bank July futures added 4.96% and 3,923 shares in Open Interest

• Securities that continue to be in the ban list: Indiabulls Housing Finance, Nalco, NMDC, PNB and SAIL.