Sensex, Nifty Clock Longest Losing Streak In Over Two Months

Indian equity benchmarks extended declines for the fifth consecutive trading session, clocking their longest losing streak in over two months.

The S&P BSE Sensex closed 0.36 percent lower at 37,847.65 and the NSE Nifty 50 fell 0.53 percent to 11,331.05. The broader market represented by the NSE Nifty 500 Index fell 0.8 percent.

The markets are expected to fall 8-10 percent from current levels, according to Narnolia Financial Advisors’ Vineeta Sharma.

“We are factoring in earnings per share of 575-580 for the Nifty in current financial year with a 17.5-21.5 times price-to-earnings. We could see the markets falling below the lowest estimated P/E if there are uncertainties in the macro, liquidity and earnings,” the Head of Equity Research told BloombergQuint over the phone. “This could lead to 8-10 percent correction.”

The market breadth was tilted in favour of sellers. About 1,185 stocks declined and 561 shares advanced on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Metal Index’s 2.4 percent fall. On the flipside, the NSE Nifty Media Index was the top sectoral gainer, up 1.69 percent.

Canara Bank (Q1, YoY)

• Stock fell as much as 5.3 percent to Rs 242.60.
• Net profit at Rs 329.1 crore versus Rs 281.5 crore.
• NII down 17 percent to Rs 3,240.61 crore.
• Gross NPA at 8.77 percent versus 8.83 percent (QoQ).
• Net NPA at 5.35 percent versus 5.37 percent (QoQ).
• Provisions at Rs 1,899.13 crore versus Rs 5,523.50 crore (QoQ).

Crompton Greaves Consumer Electricals (Q1, YoY)

• Stock rose as much as 1.5 percent to Rs 232.
• Revenue up 11.9 percent to Rs 1,346.8 crore.
• Net profit up 17.5 percent to Rs 122.6 crore.
• Ebitda up 14.8 percent to Rs 192 crore.
• Margin at 14.3 percent versus 13.8 percent.

Jubilant FoodWorks (Q1, YoY)

• Stock fell as much as 9.2 percent to Rs 1,115.85
• Revenue up 10 percent to Rs 940 crore.
• Reported Ebitda up 54 percent to Rs 219 crore.
• Margin at 23.3 percent versus 16.6 percent
• Net profit flat at Rs 74.8 crore.
• Same store sales growth of 4 percent.

Zee Entertainment Enterprise

• Stock rose as much as 6.2 percent to Rs 383.
• The company’s promoters, who are looking to pare debt, have received two bids for acquiring nearly half of their stake in the Subhash Chandra-led Essel Group’s flagship media company, Managing Director Punit Goenka told BloombergQuint.

HDFC

• Stock rose as much as 2.4 percent to Rs 2,188.85.
• The housing finance lender said that as a policy in case of under-construction properties, it will disburse loans to individuals based on the stage of construction. The company’s exposure to housing loan products in subvention schemes offered by developers is less 2 percent of the individual loans.

Torrent Pharma

• Stock rose as much as 9.7 percent to Rs 1,610.
• The company’s net profit rose 32.5 percent year-on-year at Rs 216 crore in June quarter.

KRBL

• Stock rose as much as 15 percent to Rs 249.
• Trading volume was more than double its 20-day average.

Indian sovereign bonds rose after Bloomberg reported that the government may raise $10 billion in a single issuance in its debut global bond sale.

The 10-year yield dropped as much as four basis points to 6.42 percent.

• Axis Bank is closing down its branches in Hong Kong, Shanghai and Colombo.
• Staff working at the three branches, which amount to half of Axis Bank’s overseas locations, are in the process of being transferred back to India.

Source: Bloomberg quoting people familiar with the matter

Shares of Axis Bank fell as much as 2.5 percent to Rs 709.35.

European stocks paused a rally after their biggest one-day gain in more than a month, as a slew of earnings drove corporate share moves.

Indian equity benchmarks were trading off day’s low.

The S&P BSE Sensex fell 80 points to 37,902 as of 2 p.m. and the NSE Nifty 50 fell 0.4 percent to 11,283.60. The broader market represented by the NSE Nifty 500 Index fell 0.6 percent.

The market breadth was tilted in favour of sellers. About 1,171 stocks declined and 536 shares advanced on National Stock Exchange.

Shares of L&T fell as much as 2.4 percent to Rs 1,376.

About 11 lakh shares changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately. Besides, the company announced its quarterly results yesterday.

Key Earnings Takeaways (Q1, YoY)

• High financial, material costs impact earnings.
• Maintains revenue and order growth guidance.
• Order inflow for 2019-20 to be back ended, led by government.
• Weakness seen in margin of most segments.
• Management expects private capex to remain subdued.

Shares of Torrent Pharma rose as much as 8.9 percent, the most since August 2017, to Rs 1,599. The company had announced its quarterly results yesterday.

Key Earnings Highlights (Q1, YoY)

• Revenue up 8 percent at Rs 2,022 crore.
• Net profit up 32.5 percent at Rs 216 crore.
• Ebitda up 13.4 percent at Rs 541 crore.
• Margin at 26.8 percent versus 25.5 percent.

Shares of Asian paints fluctuated between gains and losses to trade 0.9 percent higher at Rs 1,441, after the company announced its quarterly results for the three months ended June. The stock had declined 2.4 percent intraday to Rs 1,395.

Key Earnings Highlights (Q1, YoY)

• Revenue up 17 percent to Rs 5,130 crore.
• Net profit up 17 percent to Rs 655 crore.
• Ebitda up 24 percent to Rs 1,156 crore.
• Margin at 22.5 percent versus 21.2 percent.

Shares of KRBL extended gains for the third consecutive trading session and rose as much as 15 percent to Rs 249.

Trading volume was more than double its 20-day average, Bloomberg data showed. The stock traded at 10 times its estimated earnings per share for the coming year, according to Bloomberg data.

Indian equity benchmarks recovered from day’s low.

The S&P BSE Sensex fell 180 points to 37,801 and the NSE Nifty 50 fell 0.6 percent to 11,259. The broader market index represented by the NSE Nifty 500 Index fell 0.9 percent.

Shares of Zee Entertainment rose as much as 5 percent to trade at their highest levels since May 28.

The company’s promoters, who are looking to pare debt, have received two bids for acquiring nearly half of their stake in the Subhash Chandra-led Essel Group’s flagship media company, Managing Director Punit Goenka told BloombergQuint. (Click here for more)

• Tata Motors’ long-term issuer default rating was downgraded by Fitch to BB- from BB
• Outlook changed to ‘Negative’ from ‘Watch Negative’
• Fitch says Tata Motors’ outlook reflects limited rating headroom
• Fitch cites Tata Motors’ profitability and cash free generation

Source: Bloomberg

• Tata Power: About 21.9 lakh shares changed hands in a block deal.
• SBI Life: About 63.3 lakh shares changed hands in a block deal.

Source: Bloomberg
Buyers and sellers were not known immediately.

Indian equity benchmarks recovered marginally from day’s low.

The S&P BSE Sensex fell 220 points or 0.58 percent to 37,760 and the NSE Nifty 50 fell 0.72 percent to 11,250. The broader market index represented by the NSE Nifty 500 Index fell 0.9 percent.

All the 11 sectoral gauges compiled by National Stock Exchange traded lower, led by the NSE Nifty Metal Index's 3.02 percent fall.

Shares of Karur Vysya Bank fluctuated between gains and losses to trade 1.9 percent lower at Rs 63.65 after the lender announced its quarterly results.

Key Earnings Highlights (Q1, YoY)

• Net profit at Rs 72.92 crore versus 45.91 crore.
• Net interest income flat at Rs 584 crore.
• Provisions at Rs 330 crore versus Rs 325 crore (QoQ).
• Gross NPA at 9.17 percent versus 8.79 percent (QoQ).
• Net NPA at 4.94 percent versus 4.98 percent (QoQ).

About 9.49 crore shares of Vodafone Idea changed hands in two block deals, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of the telecom operator Vodafone Idea share price dropped below its face value of Rs 10 apiece.

Indian equity benchmarks were trading at day’s low.

The S&P BSE Sensex fell 267 points or 0.7 percent to 37,720 as of 11:15 a.m. and the NSE Nifty 50 fell 0.85 percent to 11,235. The broader market index represented by the NSE Nifty 500 Index fell 1 percent.

The market breadth was tilted in favour of sellers. About 1,169 shares declined and 486 stocks advanced on National Stock Exchange.

Nifty’s 11,400 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract fell 65 percent to Rs 5.70. Over 12.11 lakh shares were added to the open interest which stood at over 46.83 lakh shares.

Shares of Kajaria Ceramics extended declines for the sixth consecutive trading session, the longest losing streak in nearly a year.

The stock fell as much as 9.3 percent, the most since October 2016, to Rs 463.30, the lowest level since December 2018.

The company had announced its quarterly results for the three months ended June on Monday.

Key Earnings Highlights (Q1, YoY)

• Net profit up 12 percent to Rs 51 crore.
• Revenue up 7 percent to Rs 600 crore.
• Margin at 15.1 percent versus 14.7 percent
• Ebitda up 9 percent to Rs 106 crore.

Shares of Bajaj Finance fell as much as 3.4 percent to Rs 3,166.20.

The stock is testing its 100-day moving average of 3,204.62. Trading volume was 1.9 times its 30-day average, Bloomberg data showed. The scrip rose 20.6 percent so far this year and gained 17.5 percent in the past 12 months.

Indian equity benchmarks traded lower after a shaky start.

The S&P BSE Sensex fell 186 points or 0.49 percent to 37,796.21 as of 10:15 a.m. and the NSE Nifty 50 fell 0.66 percent to 11,257. The broader market represented by the NSE Nifty 500 Index fell 0.8 percent.

Shares of Cox & Kings hits lower circuit for nearly three weeks and are set for their record losing streak. The stock hit 5 percent lower circuit to a record low at Rs 14.80.

The company clarified that licenses issued by IATA remains valid till termination and the company is procuring airline tickets from trusted alternate travel companies on cash and carry basis. IATA had suspended the company’s license for selling air tickets on June 28.

The stock traded at 6.1 times its estimated forward earnings per share compared nine times for the two-year historical average, Bloomberg data showed.

Shares of Larsen & Toubro fluctuated between gains and losses to trade 0.2 percent lower at Rs 1,406.80 after the company announced its quarterly results.

Key Earnings Takeaways (Q1, YoY)

• High financial, material costs impact earnings.
• Maintains revenue and order growth guidance.
• Order inflow for 2019-20 to be back ended, led by government.
• Weakness seen in margin of most segments.
• Management expects private capex to remain subdued.

Shares of HDFC halted their three-day losing streak and rose as much as 2 percent to Rs 2,182. The stock was the best performer on Sensex and Nifty.

The housing finance lender said that as a policy in case of under-construction properties, it will disburse loans to individuals based on the stage of construction. The company’s exposure to housing loan products in subvention schemes offered by developers is less 2 percent of the individual loans.

The stock returned 10.7 percent so far this year and 10.3 percent in the past 12 months.

Shares of M&M Financial Services fell as much as 15 percent, the most since September 2018, to Rs 289.15, the lowest since March 2017.

This after the company announced its quarterly results for the three months ended June.

Key Earnings Highlights (Q1, YoY)

• Net interest income up 16.5 percent at Rs 1238.3 crore. (Estimate: Rs 1,280 crore)
• Net profit down 74.6 percent at Rs 68.4 crore. (Estimate: Rs 354 crore)
• Consolidated net interest income up 17.1 percent at Rs 14,66.2 crore.
• Consolidated net profit down 66.1 percent at Rs 107.2 crore.
• Impairment on financial instruments at Rs 676.8 crore.
• NNPA at 5.7 percent.
• GNPA at 7.4 percent.

The stock extended fall for the sixth consecutive trading session and is set for its longest losing streak in nearly six months.

Indian equity benchmarks fluctuated between gains and losses after falling for four straight trading sessions.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 38,027 and 11,345 respectively. The broader market index represented by the NSE Nifty 500 Index rose 0.14 percent.

The market breadth was tilted in favour of sellers. About 831 stocks declined and 671 shares advanced on National Stock Exchange.

All the sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Auto Index’s 1.16 percent fall.

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.23 percent to 69.09 against the greenback.

Indian equity benchmarks are set for a muted start.

The S&P BSE Sensex rose 52 points or 0.14 percent to 38,035 during the pre-market trade and the NSE Nifty 50 fell 0.17 percent to 11,312.20.

Nifty Earnings To Watch

• Bharti Infratel
• Asian Paints

Other Earnings To Watch

• Oberoi Realty
• Crompton Greaves Consumer Electricals
• V-Guard Industries
• Jubilant FoodWorks
• ICICI Prudential Life Insurance Company
• IDFC First Bank
• Intellect Design Arena
• Canara Bank
• Cheviot
• Cigniti Technologies
• Karur Vysya Bank
• Kewal Kiran Clothing
• KSB
• Liberty Shoes
• Maharashtra Scooters
• NELCO
• Newgen Software Technologies
• PI Industries
• Quess Corp
• Rane (Madras)
• Sagar Cements
• Security and Intelligence Services (India)
• Shriram Transport Finance Company
• Syndicate Bank
• Syngene International
• Tejas Networks
• Tube Investments of India
• GE T&D India
• Monsanto
• Reliance Nippon Life Asset Management
• Sharda Cropchem

Earnings Reactions To Watch

L&T (Q1, YoY)

• High financial, material costs impact earnings.
• Maintains revenue and order growth guidance.
• Order inflow for 2019-20 to be back ended, led by government.
• Weakness seen in margin of most segments.
• Management expects private capex to remain subdued.

Zee Entertainment Enterprises (Q1, YoY)

• Subscription revenue rose 46.7 percent.
• Domestic advertising revenue grew 4.2 percent.
• Ebitda margin expands to 32.9 percent.
• International advertising revenue down 7.6 percent.
• 7.64 crore active users for Zee5 as of June 2019.

HUL (Q1, YoY)

• Revenue of Rs 10,114 crore in-line with consensus expectations.
• Volume growth of 5 percent.
• Ebitda margin expands 150 basis points.
• 10 percent growth in home care business.
• Subdued growth of 4 percent in personal care business.

M&M Financial Services (Q1, YoY)

• Net interest income up 16.5 percent at Rs 1238.3 crore. (Estimate: Rs 1,280 crore)
• Net profit down 74.6 percent at Rs 68.4 crore. (Estimate: Rs 354 crore)
• Consolidated net interest income up 17.1 percent at Rs 14,66.2 crore.
• Consolidated net profit down 66.1 percent at Rs 107.2 crore.
• Impairment on financial instruments at Rs 676.8 crore.
• NNPA at 5.7 percent.
• GNPA at 7.4 percent.

NIIT Technologies (Q1, QoQ)

• Revenue down 1 percent at Rs 962.7 crore.
• Net profit down 17 percent at Rs 87.6 crore.
• EBIT down 30.8 percent at Rs 95.3 crore.
• Margin at 9.9 percent versus 14.2 percent.

Bayer Crop Science (Q1, YoY)

• Revenue down 20.2 percent at Rs 663.6 crore.
• Net profit down 59.7 percent at Rs 59.3 crore.
• Ebitda down 46.1 percent at Rs 123.9 crore.
• Margin at 18.7 percent versus 27.6 percent.

Torrent Pharma (Q1, YoY)

• Revenue up 8 percent at Rs 2,022 crore.
• Net profit up 32.5 percent at Rs 216 crore.
• Ebitda up 13.4 percent at Rs 541 crore.
• Margin at 26.8 percent versus 25.5 percent.

Linde India (Q2 CY19, YoY)

• Revenue down 9.4 percent at Rs 498.2 crore.
• Net profit up four times at Rs 20.2 crore.
• Ebitda up 10.8 percent at Rs 94.5 crore.
• Margin at 19 percent versus 15.5 percent.
• Fuel expenses down 61 percent at Rs 91.7 crore.

Sundaram Clayton (Q1, YoY)

• Revenue up 6.8 percent at Rs 5307.1 crore.
• Net profit down 7.8 percent at Rs 89.3 crore.
• Ebitda up 16.3 percent at Rs 599.5 crore.
• Margin at 11.3 percent versus 10.4 percent.
• Finance cost up 40 percent to Rs 221.5 crore.

SBI Life (Q1, YoY)

• Gross Premium up 41 percent at Rs 6,694 crore.
• Net profit up 5 percent at Rs 372 crore.
• New Business Premium up 52 percent at Rs 3,150 crore.
• Value of new business up 49 percent at Rs 330 crore.
• New business margin widens to 19.9 percent.

GE Power (Q1, YoY)

• Revenue down 3.2 percent at Rs 428.7 crore.
• Net loss at Rs 8.8 crore.
• Ebitda loss at Rs 25 crore.

JK Paper (Q1, YoY)

• Revenue down 10.3 percent at Rs 713.1 crore.
• Net profit up 29.7 percent at Rs 123.5 crore.
• Ebitda up 18.2 percent at Rs 237.1 crore .
• Margin at 33.2 percent versus 25.2 percent.
• Raw material as percent of sales at 40.8 percent.
• Bottomline improved due to the fall in raw material prices.

Praj Industries (Q1, YoY)

• Revenue up 10.4 percent at Rs 211.6 crore.
• Net profit up 2.5 times at Rs 8.8 crore.
• Ebitda up 52.4 percent at Rs 6.4 crore.
• Margin at 3 percent versus 2.2 percent.

Crisil (Q2 CY19, YoY)

• Revenue down 4.7 percent at Rs 415.8 crore.
• Net profit down 13.5 percent at Rs 66.7 crore.
• Ebitda down 10.6 percent at Rs 96.6 crore.
• Margin at 23.2 percent versus 24.8 percent.

Schaeffler (Q2 CY19, YoY)

• Revenue up 1.5 percent at Rs 1,116.7 crore.
• Net profit down 25.9 percent at Rs 82.5 crore.
• Ebitda down 11.6 percent at Rs 159.3 crore.
• Margin at 14.3 percent versus 16.4 percent.
• Other income down 57 percent.

Mahindra EPC Irrigation (Q1, YoY)

• Revenue up 2.1 percent at Rs 53.6 crore.
• Net profit up 46.7 percent at Rs 2.2 crore.
• Ebitda up 31.3 percent at Rs 4.2 crore.
• Margin at 7.8 percent versus 6.1 percent.

• GTPL Hathway to move out of short term ASM Framework.

• Garden Reach Shipbuilders: UTI AMC sold 6 lakh shares or 0.52 percent equity at Rs 131.99 each.

• Affle India to announce price-band, offer period for its IPO.

• HDFC stated that as a policy in case of under-construction properties, it will disburse loans to individuals based on the stage of construction. The company’s exposure to housing loan products in subvention schemes offered by developers is less 2 percent of the individual loans.
• Vedanta: A South African court ordered Zambia to halt plans to liquidate and sell copper mines controlled by Indian billionaire Anil Agarwal pending arbitration. The ruling is a blow to the Zambian government, which has said it plans to sell KCM to another foreign investor, Bloomberg reported
• Bharti Airtel: India’s Department of Telecommunications seeks to challenge the merger of Tata Teleservices unit with Bharti Airtel in the Supreme Court in August, Bloomberg reported.
• Reliance Infra and Reliance Capital excluded from F&O Segment. No contracts shall be available for these companies with effect from Sept. 27
• Cox & Kings clarified that licenses issued by IATA remains valid till termination and the company is procuring airline tickets from trusted alternate travel companies on cash and carry basis. IATA had suspended the company’s license for selling air tickets on June 28.
• TV Today Network: NCLT approved amalgamation of Mail Today Newspapers and India Today Online with the company.
• Hotel Leelaventure: SEBI stated that company’s proposed asset sale does not qualify as ‘related party transaction’ except for its plan to the transfer ‘Jamavar’ trademark to Brookfield. (Bloomberg News)
• Kolte Patil Developers clarified that it has neither raised nor invested in any India real estate fund set up based out of Mauritius.
• Bosch to suspend all manufacturing operations at company’s plant at Naganathpura in Karnataka between July 27 and July 29, to adjust for shrinking demand and avoid inventory buildup.
• SEBI gives wholly owned subsidiary Multi Commodity Exchange Clearing Corporation Ltd nod to act as clearing corporation for a period of one-year with effect from July 31.
• Hindustan Construction Company’s board approved lenders resolution plan which includes prepayment of certain long term existing facilities, re-arrangement of working capital facilities availed by the company and settlement of certain guarantee and put options obligations.
• Dynamatic Technology successfully delivered the 5000th shipset of Single Aisle Flap-Track-Beam Assembly for Single Aisle Aircraft (A318, 431 9, 4320 & A321) Family to Airbus. The company is the global single source supplier of FlapTrack-Beam Assemblies. This is the first instance that a functional aero-structure of a major commercial jet is being manufactured by an Indian company.
• Future Lifestyle: Board to meet on July 26 to consider fund raising by way of equity shares.
• Bajaj Electricals: ICRA downgraded company’s credit rating by one notch due to increasing leverage level and the subsequent weakening of debt coverage metrics. The long-term line of credit and NCDs rating downgraded to A from A+. Short-term line of credit and commercial paper rating downgraded to A1 from A1+.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.13 percent to 11,340 as of 8:30 a.m.

Asian shares opened mixed Wednesday as investors weighed signs of progress in U.S.-China trade talks and prospects for the technology industry after the U.S. opened an antitrust probe.

The dollar touched a two-week high ahead of Thursday’s European Central Bank meeting. Stocks rose in Japan and Australia, and Chinese and Hong Kong shares opened higher. South Korean equities were little changed, as were U.S. futures.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.

Source: Bloomberg