Sensex, Nifty End Higher For Fourth Day Led By Britannia, I.T.

Indian equity markets held on to opening gains to end higher for the fourth straight day, outperforming their global peers.

The S&P BSE Sensex ended 1.1% higher at 37,418 while the NSE Nifty 50 index ended at 11,022, up 1.1%. The Nifty has ended above the mark of 11,000 for the first time since March 5, this year.

Gains were led by I.T. stocks yet again. The I.T. index ended higher for the third time in the last four sessions, with gains of 2.6%.

Among other gainers were the Nifty Bank index which gained 1.6% and the PSU Bank index which gained 0.7%. Most other sectoral indices ended flat.

Nifty Pharma was the only sectoral laggard in today's session, ending 1.6% lower led mainly by losses in Sun Pharma and Glenmark.

Broader markets ended in-line with the benchmarks. The Midcap index ended 1% higher while the smallcap index held on to gains of 1.2%.

Market breadth ended in favour of the advances. 1,109 stocks on the NSE ended with gains while 736 posted losses.

• Among best performers on the Nifty 500 index
• Gains as much as 7.2% to Rs 1,442
• Trades at the highest level since January 2013
• Up for the third straight day
• Longest winning streak in a month
• Has gained 11% in the last three sessions
• Today's volumes are more than double its 20-day average
• Stock trades in overbought territory with Relative Strength Index (RSI) at 76
• Has nearly doubled from its 52-week low of Rs 778 on July 30, 2019
• 7 out of the 10 analysts tracking the stock have a buy recommendation; 0 sell calls
• Return potential for the stock as per Bloomberg data is 1.3%

Private Equity firms like Bain Capital and PAG are among the bidders for a majority stake in the wealth and advisory business of Edelweiss Financial Services, Bloomberg News reports citing people familiar with the matter.

Blackstone Group is also among the suitors who have submitted bids for the assets, the sources said. The first round of bidding ended last week.

Edelweiss is looking to raise over Rs 5,000 crore from the stake sale and intends to call for final offers by the middle of August, according to the sources.

There is no certainty that bidders will proceed with binding offers.

Shares of Edelweiss are locked in an upper circuit of 5% at Rs 67.6, up for the fourth straight day.

As per the latest shareholding pattern of the Bank for the quarter ended June, veteran investor Rakesh Jhunjhunwala has increased his stake in the lender.

Jhunjhunwala now holds 3.18% stake in the bank in the June quarter as compared to 3.08% that he held during the quarter ended March.

Shares gained as much as 4.3% to Rs 54.25, up for the third straight day.

The I.T. major has announced a strategic long-term partnership with LANXESS - a leading specialty chemicals company based in Germany.

Infosys will help LANXESS in its I.T. infrastructure digitisation strategy, the company said in an exchange filing.

Infosys will also transform LANXESS to a future ready and end-user I.T. landscape over the course of the partnership.

Shares are off the day's low, gaining as much as 1.5% to Rs 916.7.

• Benchmark indices near the day's high
• Nifty up 0.94% at 11,003
• Sensex up 1% at 31,378
• Nifty Bank up 1.9% at 22,395
• Nifty Midcap Index up 1%
• Nifty Smallcap Index up 1.2%
• India Volatility Index up 2% to 24.63
• Nifty Pharma remains the only sectoral laggard; down 1.5%
• Nifty I.T., Nifty PSU Bank up 1% each
• Other sectoral indices trade flat
• Britannia is the top Nifty gainer; up 4.5%
• Sun Pharma remains the top Nifty laggard; down 4.5%
• 1,131 stocks on the NSE trade with gains while 690 decline

The rupee has ended with gains after trading in a narrow range throughout the trading session.

The currency ended at 74.91 against the U.S Dollar as compared to Friday's close of 75.02.

With today's gains, the rupee ended as the second best performing currency in Asia, behind the South Korean Won.

Yield on the 10-year government bond ended at 5.799% as compared to the opening levels of 5.802%.

• HDFC Bank's 1,200 Call: Premium up 42.9% to Rs 10. The contract has added 4.2 lakh shares in Open Interest.
• Britannia's 4,000 Call: Premium up 59.1% to Rs 91. The contract has shed 1.6 lakh shares in Open Interest.
• ICICI Bank's 380 Call: Premium up 41% to Rs 9.3. The contract has shed 13.8 lakh shares in Open Interest.

The company informed the exchanges on Saturday that it has paid a further sum of Rs 1,000 crore towards the AGR dues. The company had earlier deposited Rs 6,854 crore in three tranches.

The total amount now deposited by the telecom operator now stands at Rs 7,854 crore.

Also, TDSAT has stayed the telecom regulator's order which asked the company to put on hold its premium offering RedX. TDSAT said that TRAI's argument of suspension would facilitate detailed examination by the regulator is devoid of any merit.

Shares gained as much as 9% to Rs 9.7, up for the second straight day.

The data and cable services provider reported a 6.7% decline in its revenue for the quarter ended June.

The company also returned to profitability, reporting a net profit of Rs 65.9 crore during the quarter as compared to a net loss of Rs 9.7 crore during the same period last year.

Higher finance costs during the base quarter had led to a net loss for the company.

Operational performance during the quarter remained strong. Ebitda rose 26.9% while margins expanded to 28.2% from 20.7% last year.

Revenue from the broadband segment rose 9% while that from its cable TV business fell 14% year-on-year.

Shares gained as much as 8.7% to Rs 47.5 and have gained in six out of the last seven trading sessions.

Markets in Europe have taken a pause after registering four straight weeks of gains on Friday. Investors are awaiting more progress from the European Union towards a recovery fund agreement.

The Stoxx 600 index has opened 0.2% lower. Oil & Gas stocks are the top laggards while healthcare and technology are the only gainers.

Asian markets have ended mixed while futures on the Dow Jones are trading lower by 160 points.

Brent Crude trades 1.2% lower at $42.61 per barrel while Gold is little changed at $1,809/Oz.

Let's take a look at how benchmark indices across Europe have opened:

• Euro Stoxx 50 down 0.2% at 3,358
• DAX down 0.2% at 12,896
• CAC down 0.2% at 5,058
• FTSE 100 down 0.2% at 6,278
• IBEX 35 down 0.1% at 7,430

• All manufacturing facilities are operating normally.
• Business has not been significantly affected by Covid-19
• Future impact is not possible to ascertain reasonably
• Have sufficient capital and financial resources to support business
• Profitability not significantly impacted.

Shares gained as much as 8% to Rs 707. The stock has now gained in 8 out of the last 11 trading sessions. The last 11 trading sessions has seen the stock gain 31%.

• Trading at an all-time high
• Gains as much as 8.9% to Rs 7,042
• Biggest single-day gain in three months
• Up for the second straight day
• Today's volumes are more than triple its 20-day average
• Stock trades in overbought territory with Relative Strength Index (RSI) at 80
• Has nearly quadrupled from its 52-week low of Rs 1,560 on August 13, 2019
• 16 out of the 18 analysts tracking the stock have a buy recommendation; 0 sell calls
• The stock now trades 16.2% above its 12-month consensus price target of Rs 5,789.3, implying a negative return potential

• Benchmark indices off the day's high
• Nifty up 0.8% at 10,986
• Sensex up 0.8% at 37,310
• Nifty Bank up 2% at 22,396
• Nifty Midcap Index up 0.8%
• Nifty Smallcap Index up 0.9%
• India Volatility Index up 2.6% to 24.77
• Nifty Pharma remains the top sectoral laggard; down 1.5%
• Nifty I.T., PSU Bank and Realty index gain 1% each
• Bharti Infratel is the top gainer on the Nifty; up 4.1%
• Sun Pharma remains the top Nifty laggard; down 3.3%
• 1,108 stocks on the NSE trade with gains while 660 decline

The private lender's Rs 15,000 crore follow-on public offer (FPO) was subscribed 95% on the final day of bidding.

The QIB portion of the FPO was subscribed 1.9 times while retail was subscribed only 0.47 times. HNI subscription of the issue stood at 0.63 times.

The bank has hence raised Rs 14,267 crore out of the intended Rs 15,000 crore through the issue.

Shares fell as much as 7.1% to Rs 18.4.

• Nifty July futures add 7.9% and 8.3 lakh shares in Open Interest.
• Nifty Bank July futures add 23.3% and 3.4 lakh shares in Open Interest.

Nifty: July 23 Expiry

• 11,000 Call: Premium up 38.9% to Rs 85.3. The contract has added 9.9 lakh shares in Open Interest.
• 11,200 Call: Premium up 38.8% to Rs 22.7. The contract has added 5.6 lakh shares in Open Interest.
• 11,100 Call: Premium up 41.6% to Rs 45.7. The contract has added 6.5 lakh shares in Open Interest.

Nifty Bank: July 23 Expiry

• 23,000 Call: Premium up 67.6% to Rs 125.3. The contract has added 2.3 lakh shares in Open Interest.
• 22,500 Call: Premium up 65.6% to Rs 294. The contract has added 71,180 shares in Open Interest.
• 22,000 Put: Premium down 40.5% to Rs 231. The contract has added 4.4 lakh shares in Open Interest.

The general insurance company reported a 5% decline in its gross premium for the quarter ended June.

Net income for the period rose 28% while solvency was at 2.5 times as compared to 2.17 times in the quarter gone by.

Premium from health insurance rose 10% while that from motor insurance fell 2% to Rs 1,452 crore.

Kotak securities has maintained its sell rating on the stock with a price target of Rs 950, citing its preference for ICICI Bank and ICICI Prudential from the company's stable.

Shares gained as much as 2.8% to Rs 1,324, up for the second straight day.

The gold financing company was supposed to consider a stock split proposal at its board meeting on Saturday, July 18.

However, after much deliberation, the board has unanimously decided to defer the proposal to split the stock to a future date.

The decision to defer the stock split was taken considering the economic uncertainties that are currently prevailing due to the Covid-19 outbreak, the company said in an exchange filing.

Shares fell as much as 5.2% to Rs 1,140, snapping a two-day gaining streak.

Shares of the state-run coal producer rose after brokerage firm Credit Suisse initiated coverage on the stock with an outperform rating.

Credit Suisse's Rationale:

• Expect 31% earnings CAGR during FY21-23
• Improved volume growth, better product mix and lower unit costs to aid earnings
• Expect better blended realisations in the medium-term
• Trading close to record low valuations
• Investors' concern on viability of coal is overdone
• Stock is pricing in only six years of future cash flows with no e-auction premium
• Government stake sale is a technical overhang

Shares gained as much as 3% to Rs 134.45, up for the second straight day. Credit Suisse has a price target of Rs 195 on the stock.

• Trades at an all-time high
• Gains as much as 4.1% to Rs 3,238
• Up for the fifth straight day
• Longest winning streak in four months
• Has gained 13% in the last five sessions
• Today's volumes are more than double its 20-day average
• The stock has doubled from its 52-week low of Rs 1,580 on March 23, 2020
• 10 out of the 27 analysts tracking the stock have a buy recommendation; 9 sell calls
• The stock is trading 19.8% above its 12-month consensus price target of Rs 2,586, implying a negative return potential

The drugmaker has received tentative approval from the U.S. FDA for its Abbreviated New Drug Application (ANDA) Empagliflozin and Metformin Hydrochloride Tablets.

Hydrochloride tablets are indicated as an adjunct to diet and exercise to improve glycemic control in adults with type 2 diabetes mellitus.

The said drug had a market size of $172 million for the twelve months ending March 2020, according to IQVIA.

The company is currently in litigation with Boehringer Ingelheim in District Court of Delaware and launch of the product will depend on the litigation outcome, the company said in an exchange filing.

Shares gained as much as 6.5% to an all-time high of Rs 1,040.

The company's board approved a rights issue for an amount not exceeding Rs 3,500 crore. The issue price for the same has been set at Rs 50 per share.

Record date for the same has been fixed at July 23, 2020. The rights issue opens on July 28 and will close on August 11, 2020.

The entitlement ratio for the rights issue has been set at one fully paid-up equity share for every one fully-paid up equity share held by the shareholder as on the record date.

The company's Assets Under Management rose 14% in the April-June period to Rs 81,000 crore. Gross stage 3 assets reported a rise to 9.19% from 8.17% during the same period last year.

Provision coverage ratio rose to 40% from 24.9%, the company's earnings statement said.

It has also appointed Vivek Karve as the new CFO from September 14. Karve is currently the outgoing CFO of Marico.

Shares gained as much as 10% to Rs 228.65, up for the third straight day.

• Benchmark indices hold on to opening gains
• Nifty up 1% at 11,010
• Sensex up 1% at 37,394
• Nifty Bank up 2.4% at 22,498
• Nifty Midcap Index up 1%
• Nifty Smallcap Index up 0.9%
• India Volatility Index 2.1% to 24.66
• Nifty Pharma index is the only sectoral laggard; down 1.3%
• Nifty Media, Nifty PSU Bank gain over 1.5% each
• HDFC Bank is the top Nifty gainer; up 4.1%
• Sun Pharma is the top Nifty laggard; down 3%
• 1,143 stocks on the NSE trade with gains while 541 decline

The currency opened stronger in today's session after ending last week as the best performing currency in Asia.

The rupee opened at 74.93 against the U.S. Dollar as compared to Friday's close of 75.02.

Edelweiss securities expects the currency to trade in the range of 73.5-77 against the greenback for the rest of FY21.

Yield on the 10-year government opened at 5.802% as compared to Friday's close of 5.805%.

Within the Bond markets today, the traders will be watching out for the government's plan to switch short tenor sovereign bonds into long-term debt.

The government plans to convert bonds worth Rs 30,000 crore maturing in 2021 and 2022 into debt maturing in 2031, 2033, 2050 and 2060.

The company informed the exchanges that it has won export orders for over 1.45 lakh wheels for the U.S. Caravan Trailer market.

The orders, worth $1.5 million is the single largest order from one customer to be executed in a single month's time, the company said in an exchange filing.

The order will be executed from its Chennai plant in the month of September.

This order will make the Chennai plant run its passenger car wheel business at its highest monthly run rate, the company said.

The company has also reiterated its confidence of growing its exports business by a minimum of 25% year-on-year in FY21.

Shares gained as much as 3% to Rs 449.65, up for the second straight day.

The company has informed the exchanges that the civil action that it filed along with its wholly-owned step-down subsidiary Cipla U.S.A. in the U.S. District Court of Delaware has been resolved.

The company had filed a civil action in January 2019 against Amgen which is now resolved. Action pertaining to Teva remains pending, the company said in an exchange filing.

The resolution however entails Cipla and its affiliates to continue importing, marketing and selling its generic cinacalcet hydrochloride tablets in the U.S.

Shares fell as much as 1.45% to Rs 679.1, post the announcement, snapping a three-day losing streak.

India's largest lender by market value reported a 17.8% growth in its Net Interest Income as compared to the previous year while its bottom-line grew 19.5%.

Asset quality remained stable with Gross NPA at 1.36% from 1.26% in the last quarter while net NPA stood at 0.33% from 0.36% in the previous quarter.

The bank in its earnings call said that 9% of its total customers in number and value remain under the Reserve Bank's moratorium.

On speculations regarding his successor, MD & CEO Aditya Puri said that the candidate has been with the bank over the last 25 years.

Brokerage firm Jefferies has maintained its buy rating on the stock while raising its price target to Rs 1,350 from the earlier Rs 1,280.

Shares gained as much as 4% to Rs 1,142, rising for the second straight day.

Indian equity markets opened higher for the fourth straight day, beginning the new trading week on a strong note.

The S&P BSE Sensex opened 1% higher at 37,409 while the NSE Nifty 50 index opened at the 11,000 mark at 10,999, up 0.9%.

All sectoral indices opened with gains. The Nifty Bank opened 1.5% higher while the Media index was the other one to open with gains of over 1%.

Nifty Metal and Nifty PSU Bank, both indices opened over 0.5% higher.

Broader markets too have opened higher. The Nifty Midcap index has opened 0.5% higher while the smallcap index has opened with gains of 0.7%.

Market breadth opened in favour of the advances. 1,083 stocks on the NSE opened with gains while 396 stocks declined.

• Global cases cross 14.4 million
• Death toll rises to 6.05 lakh
• Beijing eases restrictions after two weeks of no cases
• Death toll in the U.S. crosses 1.4 lakh
• Hong Kong plans to extend mandatory wearing of masks to more public spaces. A record 108 cases were reported on Sunday.
• Victoria state in Australia reports 275 new cases
• 17 new cases from China's Xinjiang province
• Brazil reported 23,529 new cases and 716 deaths, lower from the day before

• HDFC Bank: Net Interest Income up 17.8% while net profit rose 19.5% compared to the previous year. Gross NPA at 1.36% from 1.26% while net NPA at 0.33% from 0.36% in the previous quarter. Provisions at Rs 3,891.5 crore from Rs 3,784.4 crore last quarter. 9% of customers in number and value are under moratorium.
• Yes Bank: FPO subscribed 95% on day 3. QIB portion subscribed 1.9 times, HNI portion subscribed 0.63 times while retail portion subscribed 0.47 times. The bank has raised Rs 14,267 crore through the FPO.
• Muthoot Finance: Board unanimously decided to defer the proposal to sub-divide the equity shares to a future date despite the share price movement over the last few months and financial indicators were found to be ideal for a stock split.
• M&M Financial: The board approves a rights issue for an amount not exceeding Rs 3,500 crore. The issue price for the same has been set at Rs 50 per share. Record date for the same has been fixed at July 23, 2020. The rights issue opens on July 28 and will close on August 11, 2020. The entitlement ratio for the rights issue has been set at one fully paid-up equity share for every one fully-paid up equity share held by the shareholder as on the record date. The board has also appointed Vivek Karve as the company's new CFO.
• Embassy Office Parks REIT: The company in its first quarter business update informed of rental collections from office occupiers to be at 98% during the April-June period. It also reported a rental increase of 14% on 1.8 million square feet across 22 office leases. Strong liquidity position with low leverage of 16% net debt to Total Enterprise Value (TEV) as on June 30, 2020, the exchange filing said.
• IndiaMART InterMESH: Accion Frontier Inclusion Mauritius sold 3.7 lakh or 1.28% stake at Rs 2,077.53 per share.
• Non-Nifty Earnings Today: ACC, SBI Cards and Payment Services, Bombay Dyeing, Den Networks, NRB Bearings, Swaraj Engines, State Trading Corporation.

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

• Benchmark indices end mixed; rise for third straight week
• The S&P 500 ended 0.2% higher while the DOw Jones ended 0.2% lower
• Trading volumes were 25% below the 30-day average
• U.S. consumer sentiment slumped in July, missing all forecasts
• Nasdaq has not declined for two straight sessions for over 40 days
• Bloomberg Dollar Spot Index fell 0.3%
• Yield on the 10-year treasury stood at 0.62%.
• West Texas Intermediate crude was little changed at $40.5 per barrel

Get your daily fix of the global markets here.

Good Morning!

Indian equity markets posted their fifth straight weekly gain — the longest since April 2019 — after a last-hour surge on Friday. The S&P BSE Sensex and the NSE Nifty 50 ended with gains of more than 1% each for the week.

But the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.5% to 10,877 as of 7:40 a.m. on Monday.

Corporate earnings will take centre stage this week. Companies like Axis Bank, Bajaj Finance, Larsen & Toubro and Bajaj Auto, among others, will be reporting their first-quarter results through the week.

Asian markets have begun the new trading session with modest losses and on thin trading volumes. Shares slipped across Japan, South Korea and Australia, while the Shanghai Composite has gained 1%.

Futures on the Dow Jones are trading 111 points lower this morning. The index ended slightly lower on Friday but registered its third straight weekly advance.

Yield on the 10-year treasuries remained at 0.62%, while West Texas Intermediate crude fell 0.5% to $40.38 per barrel.

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