Nifty, Sensex Pare Losses After Sharp Slide; RIL, Metal Stocks Advance
Catch all live updates on share prices, index moves, corporate announcements and more from Indian stock markets today.
Closing Bell
India’s stock benchmarks recovered from sharp decline to close the trading session almost unchanged. Gains in index heavyweight Reliance Industries and metals offset the slide in private banks like HDFC Bank, ICICI Bank and Kotak Mahindra Bank as well as pharma stocks.
The S&P BSE Sensex ended the session flat at 54,525.93. The 30-stock index slipped below 54,200 in intra-day trade after opening the session, just shy of the record levels. The NSE Nifty 50 pared losses to end almost unchanged at 16,282.25. Nifty 50 had slipped below 16,200 mark in intra-day trade.
The broader indices underperformed their larger peers with the S&P BSE MidCap falling 0.2% and S&P BSE SmallCap shedding over 0.8%. Ten out of the 19 sectoral indices compiled by the BSE Ltd. declined with S&P BSE Healthcare slipping over 1%. On the flip side, metal stocks advanced with S&P BSE Metal adding over 3.5%.
The market breadth was skewed in favour of the bears. About 1,064 stocks advanced, 2,140 declined and 128 remained unchanged.
"The recent correction in midcap and smallcap stocks will be creating opportunity for investors to get in quality names at reasonable valuations. In our view, progress of monsoon, 1QFY22E corporate earnings and COVID-19 positivity rates will be in focus in coming days", Binod Modi, Head Strategy at Reliance Securities wrote in a note.
RBL Bank Accredited As Agency Bank To RBI
RBL Bank Ltd. announced that it has been empanelled by the Reserve Bank of India as an 'Agency Bank' to conduct banking business for the central and state governments.
The authorisation will enable RBL Bank to handle transactions related to government business, including distribution of subsidies, pension payments and collection of central and state taxes such as income tax, GST, excise duties, customs, stamp duty, registration, state excise and professional tax, in both online and offline modes, as per an exchange filing by the bank.
Pidilite Advances Post Q1 Beat
Shares of Pidilite Industries Ltd. gained 1.87% to Rs 2,264 apiece after reporting revenue in June quarter numbers that beat average analyst estimate.
June Quarter numbers
Net income at Rs 217.84 crore vs estimate of Rs 226 crore (Bloomberg consensus)
Revenue at Rs 1,936.79 crore vs estimate of Rs 878 crore
Total costs at Rs 1,655.45 crore vs Rs 1,839.36 crore QoQ
Other income at Rs 6.12 crore vs Rs 17.33 crore
Out of the 20 analysts tracking the company, 4 maintained ‘buy’, 7 maintained ‘hold’ and 9 analysts maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 19.4%.
SmallCaps, Midcaps Decline
Broader indices underperformed their larger peers as small and midcap companies dragged markets.
The S&P BSE SmallCap shed nearly 1% with Sequent Scientific and Manappuram Finance weighing on the index post their June quarter results. Earlier in the session, the index fell over 3%.
The S&P BSE Midcap index declined over 0.2%. The index had shed over 2% in intraday trade, before recovering from the lows.
The decline comes after BSE Ltd. announced new measures on Monday to curb excessive price movements in some stocks based on weekly, monthly and quarterly performance.
Manappuram Finance Declines Post June Quarter Miss
Shares of Manappuram Finance Ltd. shed nearly 15% to Rs 163.35 apiece in this trading session. The company reported net income for the first quarter that missed the average analyst estimate, during market hours on Tuesday.
The stock shed nearly 5% on Tuesday and has extended the decline in today’s session.
June Quarter Results (Consolidated)
Net income at Rs 436.85 crore vs estimate of Rs 456 crore (Bloomberg Consensus)
Revenue at Rs 1,563.30 crore vs estimate of Rs 1,095 crore
Total costs at Rs 987.37 crore vs Rs 1,008.17 crore QoQ
Other income at Rs 10.44 crore vs Rs 7.93 crore QoQ
Of the 16 analysts tracking the company, 12 maintained ‘buy’ and 4 maintained ‘hold’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 24.6%.
Siemens Rises To A Record As Q3 Revenue Beats Estimates
Shares of Siemens Ltd. rose 7.69% to touch a record high of Rs 2,218.10 apiece after the company posted revenue in June Quarter that exceeded analyst estimates post market hours on Tuesday.
Third Quarter Results (Standalone)
Net profit at Rs 161.5 crore vs Rs 315.8 crore QoQ
Revenue at Rs 2,708 crore vs estimate of Rs 2,540 crore (Bloomberg Consensus)
Total costs at Rs 2,539.8 crore vs Rs 2,975.7 crore QoQ
Other income at Rs 46.3 crore vs Rs 54 crore QoQ
Jefferies
Maintains ‘buy’ with the target price unchanged at Rs 2,670 with an implied upside 28.92%
Growth in C&S Electric synergies should contribute to performance in upcoming quarters.
Between data centre prospects and cost control driven margin strength, Siemens should report 36% EPS CAGR in FY20-23E.
Order book above pre-pandemic levels augurs well for the company.
Key Risks:
Fixed cost recovery is faster than revenue growth
Incremental national level lockdown likely to have negative impact on financials.
Dolat Capital
Maintains buy with a target price unchanged at Rs 2,402, a potential upside of 16.6%
Sequential decline in Ebitda margin due to higher employee cost and impact of second wave of covid.
Loss in C&S Electric business impacte Smart Infra margins.
Of the 28 analysts tracking the company, 13 maintained ‘buy’, 7 maintained ‘hold’ and 8 maintained ‘sell’ recommendations.
Cadila Health Q1 Net Income Beats Estimate
Cadila Healthcare Ltd. reported net income for the June quarter that beat the average analyst estimate.
First Quarter Results (Consolidated)
Net income at Rs 587.2 crore vs estimate of Rs 551.2 crore (Bloomberg Consensus)
Revenue at Rs 4,025.4 crore vs estimate of Rs 3,941.3 crore
Ebitda at Rs 933 crore vs estimate of Rs 894.8 crore
Margins at 23.2% vs estimate of 22.4%
Commentary and Context:
Cadila Health says it submitted the dossier to Indian regulator DCGI for an Emergency Use Authorization of its covid-19 vaccine ZyCov-D with an interim Phase III clinical trials efficacy data for 2 mg.
Phase III data for 2 mg dose study of Zy-Cov-D vaccine also confirmed the safety for children in the age group of 12 to 18 years.
Phase III trials were carried out over 28,000 subjects in more than 50 clinical sites.
For a second vaccine candidate, ZyCoV-MV, Cadila Health has completed Pragmatic Clinical Trials and non-human primate immunogenicity study is ongoing.
Cadila Health has also initiated Phase I/II trials for a novel biotherapeutic cocktail of anti-Covid-19 monoclonal antibodies.
Out of the 35 analysts tracking the company, 19 maintained ‘buy’, 6 maintained ‘hold’ and 10 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 9.3%. Shares of Cadila Healthcare declined 3.32% to Rs 557.30 apiece post the earnings.
Mid-Market Update
India’s stock benchmarks declined as the underperformance in broader markets and slide in pharma stocks weighed. Metal stocks remained the sole exception to the trend.
The S&P BSE Sensex shed 0.34% to 54,366.73. The 30-stock index slipped below 54,200 in intra-day trade after opening the session, just shy of the record levels. The NSE Nifty 50 declined by a similar magnitude to 16,226.80. Nifty 50 had slipped below 16,200 mark in intra-day trade.
The broader indices underperformed their larger peers with the S&P BSE MidCap falling by 1% and S&P BSE SmallCap shedding over 1.5%. Fourteen out of the 19 sectoral indices compiled by the BSE Ltd. declined with S&P BSE Healthcare and S&P BSE Consumer Durables slipping over 1.5%. Metal stocks bucked the trend with S&P BSE Metal advancing nearly 2.5%.
The market breadth was skewed in favour of the bears. About 633 stocks advanced, 2,477 declined and 111 remained unchanged.
India Cements Sheds Nearly 5% Post June Quarter Miss
Shares of India Cements Ltd. declined 4.92% to Rs 174.05 apiece after the company reported net income for the June quarter that missed the average analyst estimate.
First Quarter Results (Standalone)
Net income at Rs 37.42 crore vs estimate of Rs 46.48 crore (Bloomberg Consensus)
Revenue at Rs 1,022.49 crore vs estimate of Rs 1,130 crore
Total costs at Rs 969.48 crore vs Rs 1,363.44 crore QoQ
Other income at Rs 3.05 crore vs Rs 11.82 crore QoQ
Out of the 11 analysts tracking the company, 2 maintained ‘buy’, 3 maintained ‘hold’ and 6 analysts maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 4.5%.
Aptus Value Housing Finance, Chemplast Sanmar IPO Subscription Updates: Day 2
Aptus Value Housing Finance India Ltd.’s IPO continued to witness lukewarm demand on the second day of the subscription with the offer getting subscribed 0.35 times as of 4 p.m.
Retail demand for the initial public offering of Chemplast Sanmar Ltd. picked up on day 2 with the IPO getting subscribed 0.24 times as of 4 p.m. The retail portion of the offering was subscribed 1.10 times.
Follow the subscription updates live:
CarTrade Tech, Nuvoco Vistas IPO Subscription Updates: Day 3
Retail investors continued to bid for shares in CarTrade Tech’s initial public offering on the third day of subscription. The IPO was subscribed 20.25 times as of 4 p.m.
The IPO of Nuvoco Vistas Corp got fully subscribed on the third and final day. The offering was subscribed 1.71 times as of 4 p.m.
Follow the subscription updates live:
L&T To Sell Uttaranchal Hydro-Power Project To ReNew Power
Larsen & Toubro Ltd. agreed to sell its Singoli-Bhatwari hydroelectric project to ReNew Power Pvt. for Rs 985 crore. In an exchange filing, L&T said that the transaction is expected to take place before September 30, 2021.
The 99 MW run-of-river hydroelectric power plant is owned by company’s unit L&T Uttaranchal Hydropower Ltd.
Deal inline with our focus of divesting non-core assets and improving shareholder value: L&T
The deal will help streamline and allocate capital to create long term value for our shareholders: L&T
Given that asset is already operational, acquisition is not only value accretive for us but also presents a lower level of risk. It strengthens our ability to provide firm and round clock power to grid and compliments our solar and wind assets, filling up an important position in our portfolio: ReNew Power
Zomato Climbs Despite Reporting Net Loss In Q1
Shares of Zomato Ltd. added 5.83% to Rs 132.50 apiece despite the company reporting net loss in the June Quarter.
First Quarter Results (Consolidated, QoQ)
Net loss at Rs 356.2 crore vs Rs 130.8 crore
Revenue at Rs 844.4 crore vs Rs 692.4 crore
Total costs at Rs 1,297 crore vs Rs 885 crore
Other income at Rs 72.2 crore vs Rs 58.4 crore
Trent Declines Nearly 10% Post Q1 As Analysts Turn Cautious
Shares of Trent Ltd. shed 9.92% to Rs 852 apiece after the company reported a net loss in the June quarter post market hours on Tuesday.
June Quarter Results (Consolidated)
Net loss at Rs 138.29 crore vs net profit of Rs 17.44 crore QoQ
Revenue at Rs 491.99 crore vs Rs 905.55 crore QoQ
Total costs at Rs 674.87 crore vs Rs 913.90 crore QoQ
Other income at Rs 52.79 crore vs Rs 67.44 crore QoQ
Analysts remained cautious over the expensive valuation as well as the Covid-19 impact on its business operations. Of the 17 analysts tracking the company, eight have a ‘buy’ rating, six suggest a ‘hold’ and three recommend a ‘sell’, according to Bloomberg data. The average of 12-month consensus price targets implies an upside of 4.6%.
Hinduja Global Extends Gains; Hits 5% Upper Circuit For The Second Session
Shares of Hinduja Global Solutions Ltd. hit 5% upper circuit for the second consecutive session after the company agreed to divest its healthcare services business to Baring PE Asia at an enterprise value of Rs 9,000 crore post market hours on Monday.
Shares of Hinduja Global added over 200% in 2021. The Relative strength index is at 75, suggesting that the stock may be overbought.
Lupin Slips Nearly 7% Post Q1
Shares of Lupin Ltd. shed 6.93% to Rs 1,042.30 after the company reported the first quarter numbers post market hours Tuesday.
June Quarter Results
Net income at Rs 548 crore vs estimate of Rs 474 crore (Bloomberg Consensus)
Revenue at Rs 4,237.4 crore vs estimate of Rs 4,179 crore
EBITDA at Rs 992.6 crore vs estimate of Rs 884 crore
Other income at Rs 32.8 crore vs Rs 23.8 crore QoQ
Macquarie
Maintains ‘underperform’ with a target price of Rs 1,018, an implied downside of 11.5%
Lower U.S. sales and gross margins led to weak core Q1 performance.
Increased competition in Famotidine likely to be a major behind behind sequential decline in U.S. sales.
Near to medium-term hopes hinge largely on the success of Albuterol and Brovana AG.
Delay of inspection of Lupin’s facilities under Official Action Indicated (OAI) could hurt growth prospects.
Motilal Oswal
Maintains ‘neutral’ with the target price unchanged at Rs 1,240.
Domestic Formulation sales were up 27.3% YoY while API Sales declined 40%.
Addition of low-margin authorized generic sales for g-Brovana and higher raw material cost led to margin contraction.
Lower interest and tax rate led to the sharp uptick in net profit.
Of the 42 analysts tracking the company, 23 maintained ‘buy’, 9 maintained ‘hold’ and 10 analysts maintained ‘sell’ recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of 13.7%.
QSR Chain Sapphire Foods Seeks SEBI Approval for India IPO
Sapphire Foods India Ltd. sought Indian markets regulator Sebi’s approval for an initial public offering, in which its shareholders will sell as many as 17.57 million shares, according to a copy of its draft red herring prospectus on the website of issue manager ICICI Securities.
The selling shareholders of the company, a Mumbai-based franchisee of Yum Brands Inc., include founders Sapphire Foods Mauritius selling 5.57 million shares and QSR Management Trust offering 850,000 shares; Investors WWD Ruby Ltd. will sell 4.85 million shares, Amethyst Pvt. 3.96 million and Edelweiss Crossover Opportunities Fund 1.62 million shares in IPO.
The company isn’t selling any new shares in the IPO.
Founder Sapphire Foods Mauritius holds 46.5% stake and WWD Ruby Ltd. holds 18.77%.
Sapphire operates quick service restaurants under KFC, Pizza Hut and Taco Bell brands in India, Maldives and Sri Lanka, according to the prospectus.
JM Financial, BofA Securities India, ICICI Securities and IIFL Securities will manage the IPO.
Sequent Scientific Falls The Most In 17 Months After Q1 Net Income Drops
Shares of Sequent Scientific Ltd. shed 15.40%, the steepest decline in 17 months, to Rs 254.35 apiece after the company reported sequential decline in net profit in the first quarter post market hours on Tuesday. This is the third consecutive session in which the stock has incurred losses.
June Quarter Results (Consolidated)
Net profit at Rs 2.65 crore vs Rs 23.52 crore QoQ
Revenue at Rs 320.51 crore vs Rs 381.82 crore QoQ
Total costs at Rs 315.95 crore vs Rs 334.40 crore QoQ
Other income at Rs 2.67 crore vs Rs 1.37 crore QoQ
Trading volume was above 1.5x three-month full-day average. The Relative Strength Index was at 29.68, suggesting that the stock may be in oversold territory.
Shares of Sequent Scientific added 42.7% in 2021 so far compared to 15.4% gains for the Sensex.
Opening Bell
India’s stock benchmarks edged higher just shy of record highs, led by rebound in metal stocks.
The S&P BSE Sensex gained 0.21% to 54,730.65. The NSE Nifty 50 advanced by a similar magnitude to 16,317.10.
The broader indices underperformed their larger peers with both the S&P BSE MidCap and S&P BSE SmallCap largely unchanged. Ten out of the 19 sectoral indices compiled by the BSE Ltd gained, led by S&P BSE Metal, up nearly 3%.
The market breadth was skewed in favour of the bears. About 866 stocks advanced, 1,642 declined and 82 remained unchanged.
Rupee Bonds Traders Await Rs 17,000 Crore T-Bill Sale
Indian bond traders will await a Rs 17,000 crore ($2.3 billion) sale of Treasury bills on Wednesday to gauge the direction of short-term rates. Market participants also look forward to Rs 25,000 crore of bond purchases by the RBI on Thursday under its debt purchase plan.
10-year yields rose 1bp to 6.23% on Tuesday; 5-year yields up 1bp to 5.75%
USD/INR rose 0.2% to 74.4312, currency declined most in three weeks
Global Funds Sell Net Rs 179 crore of Indian Stocks on Tuesday: NSE
SGX Nifty Suggests Positive Start; Cadila, Siemens, Lupin, ITC, Zomato In Focus
Asian stocks were mixed on Wednesday as investors awaited a key report on U.S. inflation. Treasuries and the dollar were steady. Shares saw modest gains in Japan, Hong Kong and Australia. Chinese stocks were little changed and those in South Korea retreated after it posted a record number of coronavirus cases. U.S. futures fluctuated. Earlier, the S&P 500 climbed to an all-time high, while the tech-heavy Nasdaq 100 declined. Chip stocks slipped, while energy shares rallied.
India’s SGX Nifty 50 Index futures for Aug. delivery rise 0.2% to 16,301.50, while MSCI Asia Pacific Index +0.2%. The NSE Nifty 50 Index added 0.1% Tuesday to 16,280.10.
Crude oil bounced back from a three-week low on bets that the global demand recovery will remain intact despite the fast-spreading delta virus variant. Data on Wednesday are expected to show prices paid by U.S. consumers grew in July at the slowest pace in five months, though remain elevated.
Elsewhere, Bitcoin was back above $45,000 amid renewed fervor for the digital coin. A change to cryptocurrency reporting rules in the infrastructure bill was blocked in the Senate, leaving language for broad oversight of virtual currencies in the legislation.
Back home, Power Grid, Lupin, Siemens, Trent, Zomato, IRB, Godrej Agrovet, Prestige Estates may react as the companies reported quarterly results after the market closed Tuesday. Cadila, Pidilite, Cummins, India Cements, Bata, CESC are among the companies scheduled to report earnings Wednesday. ITC, Cadila, Pidilite, Lupin, Metropolis, Karur Vysya, Redington are holding their annual shareholders’ meeting. Foreign investors bought net Rs 445 crore of stocks on Monday, according to NSDL website.