Sensex, Nifty End Lower; Nifty Bank Falls 800 Points

Indian equity markets began the first day of the July series expiry week on a negative note, ending with losses after trading in a range for most of the day.

The S&P BSE Sensex ended 0.5% lower at 37,934 while the NSE Nifty 50 index ended 0.6% lower at 11,128.

Among the sectoral indices, the Nifty Bank index was the top laggard in today's trade - ending 3.6% or over 800 points lower. All major private lenders - ICICI Bank (down 6%), HDFC Bank (down 3.5%), Axis Bank (down 3%) and IndusInd Bank (down 3%) contributed to the losses.

The PSU Banking index too ended with losses of 3.1%.

Other sectoral indices that declined included the Nifty Pharma and Nifty Realty, both of which fell 1.7%.

Broader markets underperformed in today's trade. The Nifty midcap index ended 1.3% lower while the smallcap index ended 0.6% lower.

I.T. outperformed in today's session as well with the Nifty I.T. index ending with gains of 2%.

The India Volatility Index snapped a two-day losing streak - ending 2% higher at 25.

Market breadth ended in favour of the laggards. 1,310 stocks on the NSE posted losses while 538 stocks advanced.

• Benchmark indices off day's low
• Nifty down 0.4% at 11,147
• Sensex down 0.4% at 37,977
• Nifty Bank down 2.5% at 22,084
• Nifty Midcap Index down 0.9%
• Nifty Smallcap Index down 0.3%
• India Volatility Index up 2.6% at 25.16
• Nifty I.T. extends gains; up 1.6%
• Nifty Metal is the other sectoral gainer; up 0.7%
• Nifty PSU Bank, Nifty Realty down 2% each
• Nifty Pharma is the other sectoral laggard; down 1.7%
• BPCL is the top Nifty gainer; up 2.7%
• ICICI Bank remains the top Nifty laggard; down 5.1%
• 1,266 stocks on the NSE trade with losses; 512 gain

The Board of Directors have approved an enabling resolution for an issuance of equity shares or NCDs along with warrants or any other combination thereof, for an amount not exceeding Rs 1,200 crore, the exchange filing said.

The board has also given its approval to raise capital up to Rs 1,000 crore through a Qualified Institutional Placement (QIP).

A fund raising committee will determine the issue size, schedule and discount (if applicable), according to the exchange filing.

Shares are off the day's low but trade with declines of 1% at Rs 971.

• Revenue up 34% to Rs 544.7 crore
• Net profit more than triples to Rs 85.45 crore
• Ebitda up 2.5 times to Rs 134.1 crore
• Ebitda margin at 24.6% from 13.5%
• All numbers are consolidated and compared on a year-on-year basis

Shares gained as much as 14.1% - the most since April 2015 to trade at an all-time high of Rs 1,811. The stock is up for the fourth straight day.

• Worst performing stock on the Nifty Midcap index
• Declines as much as 5.9% to Rs 133.2
• Biggest single-day drop in two months
• Down for the third straight day
• Has declined 13% in the last three trading sessions
• Today's volumes are 29% below its 20-day average
• Continues to trade between its 100 and 200-Day Moving Average
• The stock had nearly doubled from its 52-week low of Rs 76.4 on May 22, 2020
• 22 out of the 35 analysts tracking the stock have a buy recommendation; 3 sell calls
• The stock trades 1.3% above its 12-month consensus price target of Rs 132.7, implying a negative return potential

• Revenue down 48% to Rs 757 crore
• Net profit down 76% to Rs 17 crore
• Ebitda down 36% to Rs 155.7 crore
• Ebitda margin at 20.6% from 16.5%
• Lower other expenses and finance costs aid margin improvement
• Other expenses down 53% to Rs 79.4 crore
• All numbers are standalone and compared on a year-on-year basis

Shares gained as much as 3.6% to Rs 122.3, post the announcement before cooling off.

• Revenue down 50% to Rs 436 crore
• Net profit down 84% to Rs 17 crore
• Ebitda down 63% to Rs 80 crore
• Ebitda margin at 18.3% from 24.9%
• Inorganic Chemicals revenue down 41% to Rs 345 crore
• Home Textiles revenue down 68% to Rs 91 crore
• Covid-19 has affected overall business activities of the company, resulting in lower operating activity
• Covid-19 will result in shifting of supply chain from China to India and that will benefit both spinning and home textile.
• Expect sequential improvement in performance starting Q2FY21
• Hopeful that utilisation levels will improve by another 10-15% across verticals
• All numbers are standalone and compared on a year-on-year basis

Shares fell as much as 6.2% to Rs 142.65 and are down for the second straight day. The stock is down 9.5% in the last two trading sessions.

The drugmaker announced that it has received approval of XEGLYZE lotion from the U.S. FDA.

The approval triggers the contractual pre-commercialisation milestone of $20 million payable to Hatchtech Pty., the company said in a statement.

The said lotion is used in the treatment of head lice infestation in patients aged six mnths and older.

The company is working to commercialise this product through its partners, the statement said.

Shares are recovering from the day's low after falling as much as 2.6% to Rs 3,962.9. The stock trades lower for the second straight day.

The company has informed the exchanges that it has received export orders of close to 70,000 wheels from the EU Caravan Trailer Market.

The order worth 4.29 lakh Euros will be executed in the month of September and October from its Chennai plant, it said in an exchange filing.

Shares are off the day's low, after falling 3% in early trade. The stock currently trades little changed at Rs 429.

• Revenue down 27% to Rs 2,176.8 crore
• Net profit up 10% to Rs 453.4 crore
• Ebitda down 14.8% to Rs 595.3 crore
• Ebitda margin at 27.3% from 23.4%
• Improvement in margins due to lower power, fuel and freight costs
• Master Supply Agreement with ACC contributes to margin expansion
• Sales volumes at 4.19 MT from 5.82 MT
• Higher other income contributes to net profit
• Other income more than triples to Rs 192.1 crore
• All numbers are consolidated and compared on a year-on-year basis

Brokerage firm Citi has maintained its buy rating on the stock. It has raised its price target to Rs 255 from Rs 235.

Citi believes that the full benefit of the master supply agreement will reflect in CY21. It also expects the company's Ebitda per tonne to remain resilient in CY20.

Shares gained as much as 3.3% to Rs 207.7. The stock is trading at the highest level in nearly five months.

• Benchmark indices extend losses; near the day's low
• Nifty down 0.8% at 11,105
• Sensex down 0.8% at 37,827
• Nifty Bank down 2.6% at 22,071
• Nifty Midcap Index down 1.1%
• Nifty Smallcap Index down 0.75%
• India Volatility Index up 4.2% to 25.56
• Nifty Pharma, Nifty PSU Bank fall over 2% each
• Nifty I.T. (up 0.8%) and Nifty Media (up 0.7%) are the only sectoral gainers
• Nifty Realty and Nifty Auto down over 1% each
• BPCL is the top Nifty gainer; up 2.1%
• ICICI Bank is the top Nifty laggard; down 4.1%
• 1,248 stocks on the NSE decline while 448 trade with gains

The rupee opened with gains in today's session after posting its second straight week of gains on Friday.

The currency opened at 74.71 against the U.S. Dollar as compared to Friday's close of 74.83.

The Bloomberg Dollar spot index fell to the lowest since March which may aid sentiment among Emerging Market Currencies.

Emkay Global Financial Services believes that the rupee may head towards 75.25 as August is a seasonally strong month for the greenback.

Yield on the 10-year government bond opened at 5.816% as compared to Friday's close of 5.824%.

Within the bond markets, traders will await RBI Governor Shaktikanta Das' interaction with the CII national council members at 11 a.m.

Tata Mutual Fund believes that sovereign bond yields will remain on a downtrend but at a slower pace.

• Net Interest Income up 19.9% to Rs 9,279 crore
• Net profit up 36.3% to Rs 2,600 crore
• Provisions up 27% to Rs 7,594 crore sequentially
• Gross NPA at 5.46% from 5.53% in the previous quarter
• Net NPA at 1.23% from 1.41% in the previous quarter
• Made additional Covid-19 related provisions worth Rs 5,550 crore this quarter
• Total provisions against Covid-19 now at Rs 8,275 crore
• Sold 3.96% stake in ICICI Lombard and 1.5% in ICICI Lombard - resulting in net gain of Rs 3,036.3 crore in the standalone results
• Advances up 6.5% to Rs 6.31 lakh crore
• Deposits up 21% to Rs 8 lakh crore
• Slippages worth Rs 1,160 crore this quarter
• Recoveries and upgrades at Rs 757 crore this quarter
• NIMs at 3.69% from 3.87% last quarter
• Loans under moratorium down to 17.5% of total loans by June 30 from 30% in March
• Will dilute 4% stake in ICICI Securities this year

Shares fell as much as 4.5% - the most in a month to Rs 364.55. The stock trades lower for the second straight day and is the top laggard on the Nifty 50 index.

Managing Director of the Mumbai-based private lender offloaded nearly all of his stake in the bank, three months ahead of his term ending.

Puri sold 74.2 lakh shares or 0.13% stake for Rs 843 crore as per insider trading disclosures on the BSE website. Puri sold the shares between July 21-23.

The shares were allotted to Puri at different times and different price points, a spokesperson said in a clarification.

Puri's 26-year stint at HDFC Bank comes to an end in October this year. He had earlier exercised stock options worth Rs 161 crore, as per its annual report.

The stock fell as much as 2.8% - the most in over a month to Rs 1,088. Shares trade lower for the second straight day and are among the top laggards on the Nifty 50 index.

• U.S. Dollar revenue up 3.1% to $131 million
• Revenue up 7% to Rs 991.3 crore
• Net profit up 7% to Rs 90 crore
• Ebit up 19% to Rs 101 crore
• Ebit margin at 10.2% from 9.2%
• BFSI revenue up 9% to Rs 315.3 crore
• Healthcare and Life Sciences revenue up 10% to Rs 177.6 crore
• Technology companies and Emerging verticals revenue up 4% to Rs 480.3 crore
• Share of top five customers down to 40.8% from 44.6% in Q1FY20
• Share of revenue from BFSI customers up to 31.8% from 27.7% in Q1FY20
• All numbers are consolidated and compared on a quarter-on-quarter basis

Shares gained as much as 19.2% - the most since 2010 to Rs 919.4. The stock currently trades at the highest level since September 2018.

Indian equity markets have begun the final trading week of the July series on a flat note, opening with modest gains.

The S&P BSE Sensex opened 0.38% higher at 38,275 while the NSE Nifty 50 index opened above the mark of 11,200 at 11,225 - up 0.3%. Benchmark indices had posted their sixth straight weekly gain on Friday.

All sectoral indices have opened flat. Nifty Realty, Nifty FMCG and Nifty Metal index gained 0.3% at the start of trade.

Broader markets too opened largely in-line with the benchmarks. Midcap index opened 0.3% higher while the smallcap index outperformed, opening with gains of 0.7%.

Market breadth is in favour of the gainers. 904 stocks on the NSE opened with gains while 480 stocks declined at the start of trade.

• Global cases cross 16.1 million
• Death toll rises to 6.47 lakh
• Health officials across the globe struggle with second wave of infections
• Australia's Victoria reports 532 new cases
• 61 new cases reported in China with 57 local infections
• Brazil reports 24,578 new cases - half from the previous day tally of 51,147
• Mexico's death toll in the March-June period at 55%
• 5,180 cases reported in Texas - the smallest rise in two weeks
• Iraq plans to impose a 10-day curfew ahead of Eid holidays
• Iran on red alert with 2,333 new cases and 216 deaths

• ICICI Bank: Net Interest Income up 19% while net profit rises 36.3%. Sold 3.96% stake in ICICI Lombard and 1.5% in ICICI Lombard - resulting in net gain of Rs 3,036.3 crore in the standalone results. Advances up 6.5% while deposits rise 21% from last year. Asset quality stable. Loans under moratorium down to 17.5% of total loans by June 30 from 30% in March. Management says will dilute 4% stake in ICICI Securities this year.
• Zee Entertainment: Reports net loss of Rs 766.7 crore. Ebitda loss of Rs 562.5 crore. One-time provision of Rs 343 crore on doubtful recovery of ad, subscription and other assets due to Covid-19. Exceptional loss on account of impairment of goodwill pertaining to digital publishing business at Rs 113.7 crore. Advertising revenue down 15% while subscription revenue up 31%.
• ITC: Net sales down 17.4% while net profit fell 26% from last year. Ebitda margin at 27.8% from 39.7%. FMCG and Agri business revenue see growth while Cigarette, hotels and paperboards revenue see de-growth. Macquarie says Cigarette volumes declined 40% this quarter.
• JSW Steel: Reports net loss of Rs 561 crore. Ebitda down 64% while margins declined to 11.4% from 18.7% last year. All overseas subsidiaries report a loss. Management says have seen modest increase in domestic steel prices in July and expect some more hike in August.
• Ambuja Cements: Revenue down 27% while net profit rises 10% led by tripling of other income compared to last year. Improvement in margins due to lower power, fuel and freight costs and Master Supply Agreement with ACC.
• Aarti Drugs: Revenue up 34% while net profit more than triples to Rs 85.45 crore. Ebitda up 2.5 times while margins rise to 24.6% from 13.5%
• Adani Power: Shareholders approve proposal to delist the company from the exchanges. For the public institutional shareholders 83.71% of equity shares were voted on, out of which 95.88% voted in favour for delisting the company, while for public non-institutional shareholders 56.27% of shares voted with 98.50% votes in favour of the delisting resolution.
• Escorts: Rakesh Jhunjhunwala reduced stake from to 6.82% from 6.97%. Jhunjhunwala sold 2 lakh shares on July 24.
• Karur Vyasa Bank: Rakesh Jhunjhunwala increases stake to 4.5% from 4.2% as per its shareholding pattern for June quarter.
• Spencer’s Retail: Sets rights issue price at Rs 75 per share. Rights entitlement ratio at 2 shares for every 15 shares held. Issue opens from August 4 till August 18, with record date set at July 29. Issue price at discount of 13% to Friday’s closing. On February 11, Board approved raising Rs 80 crore via rights issue.
• Mindspace Business Parks REIT: Raised Rs 1,518.75 crore from 54 anchor investors at Rs 275 per share. Issue opens on July 27. Key anchor investors in this allotment were Government of Singapore, Nomura, Fidelity Goup and key domestic investors included HDFC Life Insurance and SBI Life Insurance.
• Nifty Earnings Today: Bharti Infratel, Kotak Mahindra Bank, Tech Mahindra
• Non-Nifty Earnings Today: V-Guard, Marico, Escorts, Bharat Electronics, Havells, India Cements, Orient Electric, Tejas Networks, United Spirits

For all that you need to know going into today’s trade, click here.

Good Morning!

Indian equities posted their sixth straight weekly gain on Friday. Since June 15, the S&P BSE Sensex and the NSE Nifty 50 Index have gained 4,348 and 1,222 points, respectively.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.3% to 11,212 as of 7:55 a.m. on Monday. Also, the weekly expiry of the July futures and options series begins.

Corporate earnings will take center stage. The street is expected to factor in the results announced by ICICI Bank, Zee Entertainment, JSW Steel, ITC after market hours on Friday and over the weekend. Some of the broader market stocks such as Ambuja Cements, Aarti Drugs, MCX, GHCL, Coromandel International also announced their first-quarter results.

Three Nifty 50 stocks — Kotak Mahindra Bank, Tech Mahindra and Bharti Infratel — are set to report their quarterly results on Monday. The non-Nifty list includes Havells, United Spirits, Marico, Escorts and V-Guard, among others.

Asian markets are mixed at the start of the final trading week of July. Markets in Japan are declining, while those in Hong Kong and South Korea are edging higher.

Futures on the Dow Jones are trading higher by 120 points. The index ended 0.7% higher on Monday.

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