Sensex Ends 289 Points Lower; RIL, Banks Drag Nifty To Near Five-Month Low

Indian equity benchmark NSE Nifty 50 ended near a five-month low, dragged by Reliance Industries Ltd., State Bank of India, IndusInd Bank Ltd. and HDFC Ltd.

The 50-stock index closed 0.93 percent lower at 11,085, the lowest since March 8, 2019. Meanwhile, the S&P BSE Sensex ended 289 points or 0.77 percent lower at 37,397.24. The broader market represented by the NSE Nifty 500 Index fell 1.15 percent.

Foreign investors spooked by the “super-rich” tax and waning earnings growth of Indian companies are impacting the nation’s equities, Chakri Lokapriya, managing director of TCG Asset Management told BloombergQuint in an interaction.

The market breadth was tilted in favour of sellers. About 1,422 stocks declined and 351 shares advanced on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty PSU Bank Index’s 4.9 percent fall. On the flipside, the NSE Nifty IT Index was the only sectoral gainer, up 0.65 percent.

Strides Pharma

• Stock rose as much as 12.8 percent to Rs 397.95.
• This after the company’s June quarter results beat estimates.
• The company’s arm has entered in a JV with China’s Sihuan Pharma

AstraZeneca Pharma

• Stock rose as much as 9 percent to Rs 2,068.
• Trading volume at 15 times its 20-day average.

Gulf Oil Lubricants

• Stock rose as much as 7.1 percent to Rs 745.
• Stock snaps its three-day losing streak

Bharat Electronics

• Stock rose as much as 8.3 percent to Rs 100.40.
• Fresh longs were seen with high OI of 22.2 percent

Shalby

• Stock rose as much as 19.9 percent to Rs 100.40.
• Trading volume was more than 30 times its 20-day average.

Hindustan Foods

• Stock fell as much as 1.3 percent to Rs 400.
• Trading volume was more than 30 times its 20-day average.

Jubilant Life Sciences

• Stock rose as much as 4.3 percent to Rs 457.
• Trading volume was almost 30 times its 20-day average.

Forbes & Co

• Stock fell as much as 3.3 percent to Rs 1,676.75.
• Trading volume was more than 20 times its 20-day average.

Indian equity benchmarks were trading at day’s low, led by the declines in Reliance Industries Ltd. and private lenders.

The S&P BSE Sensex fell nearly 600 points from days high to 37,363 and the NSE Nifty 50 fell as much as 1 percent to 11,078.70.

The market breadth was tilted in favour of sellers. About 1,405 shares declined and 344 stocks advanced on National Stock Exchange.

The NSE Nifty Bank Index extended declines for the second consecutive trading session and fell as much as 1.5 percent to 28,854.05.

The fall in the 12-stock index were led by the declines in RBL bank Ltd. Bank of Baroda and Yes Bank Ltd.

Shares of RBL Bank extended declines for the second consecutive trading session and fell as much as 14.3 percent to Rs 388.10, the lowest since February 2017.

Trading volume was quadruple its 20-day average, Bloomberg data showed. Trading in the company's call options totalled 12,190 contracts, compared with the average of 5,182 over the past 20 days, according to Bloomberg data. Trading in the company's put options totalled 6,913 contracts, compared with the average of 2,437 over the same period.

U.K. large-cap stocks rose for another day as sterling continued weakening amid fears of a no-deal Brexit, while European stocks slipped amid mixed corporate results.

Source: Bloomberg

Indian equity benchmarks were trading at a narrow range.

The S&P BSE Sensex rose 0.2 percent to 37,754 as of 2 p.m. and the NSE Nifty 50 rose 0.1 percent to 11,200.

The market breadth, however, was tilted in favour of sellers. About 1,230 stocks declined and 500 shares declined on National Stock Exchange

Shares of Reliance Industries extended declines for the sixth consecutive trading session and are set for their longest losing streak in over two months.

The stock fell as much as 1 percent to trade below its 200-day moving average of Rs 1,231.19.

Shares of Piramal Enterprises rose as much as 3.6 percent to Rs 1,854.90. after the company announced its quarterly results.

Key Earnings Highlights (Q1, YoY)

• Revenue up 20.8 percent to Rs 3,506.25 crore.
• Net profit at Rs 450.89 crore versus net loss of Rs 68.94 crore
• Ebitda up 43 percent to Rs 2,105.82 crore.
• Margin 60.1 percent versus 50.7 percent.

Indian equity benchmarks regained momentum after fluctuating between gains and losses.

The S&P BSE Sensex rose 0.2 percent to 37,770 as of 1 p.m. and the NSE Nifty 50 rose 0.16 percent to 11,207. The broader market represented by the NSE Nifty 500 Index traded little changed.

Additional surcharge on foreign investors and waning earnings growth are impacting Indian equities. That’s according to Chakri Lokapriya, managing director of TCG Asset Management.

‘India’s problems are its own creation,” said Lokapriya in an interview to BloombergQuint. “If you are telling foreign portfolio investors we are going to take away (in form of taxes) roughly half of your returns, then that makes India’s returns less attractive than developed markets.”

Watch the full conversation here:

Shares of Bank of India fell as much as 5.8 percent to Rs 71.30 after the lender announced its quarterly results for the three months ended June.

Key Earnings Highlights (Q1, YoY)

• Net profit up 155 percent to Rs 242.62 crore.
• Net interest income up 4 percent to Rs 3,485.42 crore.
• Provisions up 0.8 percent to Rs 1,911.98 crore (QoQ).
• Gross NPA at 16.5 percent versus 15.84 percent (QoQ).
• Net NPA at 5.79 percent versus 5.61 percent (QoQ).

“HDFC had disbursed Lease Rental Discounting (LRD) loans to Tanglin Developments Limited (Coffee Day Enterprise) for its project Global Village Tech Park in Bangalore. The entire outstanding exposure was repaid in January 2019. The current exposure to the Coffee Dy Enterprises Group as of date is Nil,” HDFC Spokesperson said.

Shares of HDFC rose 0.6 percent to 2,257.60 after the clarification.

Sical Logistics

• Stock hit lower circuit of 20 percent at Rs 72.35.
• Trading volume was more than 30 times its 20-day average.

AstraZeneca Pharma

• Stock rose as much as 9 percent t Rs 2,068.
• Trading volume was more than 17 times its 20-day average.

Persistent Systems

• Stock fell as much as 12.4 percent to Rs 468.75.
• Trading volume was almost 17 times its 20-day average

Astec Lifesciences

• Stock fell as much as 7 percent to Rs 352.80.
• Trading volume was more than 11 times its 20-day average.

Six out of 11 sectoral gauges compiled by National Stock Exchange traded lower, led by the NSE Nifty PSU Bank Index’s 1.69 percent fall. On the flipside, the NSE Nifty Pharma Index was the top sectoral gainer, up 0.89 percent.

Indian equity benchmarks managed to trade higher, led by the gains in ICICI Bank Ltd. and Reliance Industries Ltd.

The S&P BSE Sensex rose 100 points or 0.27 percent to 37,789 as of 11 a.m. and the NSE Nifty 50 rose 0.25 percent to 11,216. The broader market represented by the NSE Nifty 500 Index rose 0.1 percent.

Shares of Bharti Airtel rose as much as 4.1 percent, the most in over two months, to Rs 348.30. The stock was the best performer on Sensex and Nifty.

Brokerage and research firm BofA Securities upgraded the stock rating to ‘Buy’ from ‘Neutral’ and hiked their price target to Rs 400 from Rs 360.

Here’s what the research firm had to say about the stock:

• Find Airtel well positioned to capitalise on weakness of Vodafone Idea.
• Expect Airtel’s market share to remain stable at 30-31 percent over FY20-24.
• Favourable risk reward with tariff hike adding upside optionality.

Strides Pharma (Q1, YoY)

• Stock rose as much as 12.2 percent to Rs 395.80.
• Revenue up 45.1 percent to Rs 685.8 crore.
• Net profit at Rs 2.9 crore versus net loss at Rs 2.6 crore.
• Ebitda up 2.9 times to Rs 123.6 crore.
• Margin at 18 percent versus 9 percent.
• Raw material as percent of sales at 46 percent versus 54.3 percent.
• Finance cost up 2.1 times.

DLF (Q1, YoY)

• Stock fell as much as 1.9 percent to Rs 176.05.
• Revenue down 11.7 percent to Rs 1,331.2 crore.
• Net profit up 2.4 times to Rs 414.7 crore.
• Ebitda down 22.3 percent to Rs 239.7 crore.
• Margin at 18 percent versus 20.5 percent.
• Exceptional gain of Rs 296.5 crore in the current quarter.
• Other income up 40 percent to Rs 209.7 crore.

Bharat Electronics (Q1, YoY)

• Stock rose as much as 5.9 percent to Rs 98.25.
• Revenue flat at Rs 2,124.5 crore.
• Net profit up 11.8 percent to Rs 210.6 crore.
• Ebitda up 11.4 percent to Rs 355.1 crore.
• Margin at 16.7 percent versus 14.9 percent.
• Other income of Rs 25.8 crore in current quarter.

RNAM (Q1, YoY)

• Stock rose as much as 0.13 percent to 227.70.
• Revenue down 17.6 percent to Rs 325.1 crore.
• Net profit up 12.9 percent to Rs 125.4 crore.
• Other expenses down 47 percent to Rs 62.9 crore.
• AUM up 6 percent to Rs 4.3 lakh crore.

Sanofi India (Q2CY19, YoY)

• Stock fell as much as 3.9 percent to Rs 5,885.
• Revenue up 9.4 percent to Rs 747.9 crore.
• Net profit down 2.2 percent to Rs 97.4 crore.
• Ebitda down 4.1 percent at Rs 157.8 crore.
• Margin at 21.1 percent versus 24.1 percent.
• Raw material as percent of sales at 56 percent versus 40 percent.

Muthoot Capital Services (Q1, YoY)

• Stock fell as much as 6.9 percent to Rs 503.70.
• Revenue up 26.2 percent to Rs 143.9 crore.
• Net profit down 22.3 percent to Rs 13.6 crore.
• Other expenses up 49 percent to Rs 22.6 crore.

Shriram City Union Finance (Q1, YoY)

• Stcok fell as much as 2.4 percent to Rs 1,421.
• Net interest income down 1.5 percent to Rs 954.7 crore.
• Net profit up 10 percent to Rs 260 crore.

IFB Agro Industries (Q1, YoY)

• Stock fell as much as 3.9 percent to Rs 317.60.
• Revenue down 19.5 percent to Rs 224.1 crore.
• Net profit down 73.9 percent to Rs 3 crore.
• Ebitda down 73.1 percent to Rs 5 crore.
• Margin at 2.2 percent versus 6.7 percent.
• Spirit segment revenue up 22 percent
• Marine segment revenue down 42 percent.
• Other expenses up 11 percent.

Shalby (Q1, YoY)

• Stock rose as much as 19.9 percent to Rs 100.40.
• Revenue up 13.3 percent to Rs 131.4 crore.
• Net profit up 2 times to Rs 23.6 crore.
• Ebitda up 18.1 percent at Rs 29.3 crore.
• Margin at 22.3 percent versus 21.4 percent.

Cochin Shipyard (Q1, YoY)

• Stock rose as much as 2 percent to Rs 367.50.
• Revenue up 11.6 percent at Rs 735.4 crore.
• Net profit up 12.1 percent to Rs 119.1 crore.
• Ebitda up 22.5 percent at Rs 140.9 crore.
• Margin at 19.2 percent versus 17.5 percent.

Nifty’s 11,200 put option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the weekly contract which is set to expire Thursday fell 44.25 percent to Rs 31.75. Over 6.91 lakh shares were added to the open interest which stood at over 28.50 lakh shares.

Indian equity benchmarks traded higher, mirroring their Asian peers.

The S&P BSE Sensex rose 166 points or 0.45 percent to 37,857 as of 10:05 a.m. and the NSE Nifty 50 rose 0.44 percent to 11,238.70.

The yield on the 10-year benchmark jumped as much as two basis points to 6.43 percent.

Shares of Hero MotoCorp fell as much as 1.5 percent to Rs 2,370 ahead of the results announcement. The stock was the worst performer on Sensex and Nifty.

Here are the analysts consensus estimates tracked by Bloomberg:

Q1 Preview (YoY)

• Revenue seen 7 percent lower at Rs 8,191 crore.
• Ebitda seen at 16 percent lower at Rs 1,154 crore.
• Profit seen 14 percent lower at Rs 782 crore.
• Margin seen at 14.1 percent versus 15.6 percent.

Shares of Dr. Reddy’s Laboratories rose as much as 1.3 percent to Rs 2,689 after the company announced its quarterly results for the three months ended June.

Key Earnings Highlights (Q1, YoY)

• Revenue up 3 percent to Rs 3,844 crore.
• Net profit up 45 percent to Rs 663 crore.
• Ebitda at Rs 758 crore versus Rs 777 crore.
• Margin at 19.7 percent versus 20.8 percent.

Shares of Coffee Day Enterprises hit their lower circuit of 20 percent at Rs 153.40.

This after the company’s founder VG Siddhartha has been reported missing since Monday evening.

According to ANI, Siddhartha — who’s also the son-in-law of former Karnataka Chief Minister SM Krishna — went missing near the Netravati River in Mangaluru. The police is conducting search operations with the help from locals, Congress leader UT Khadar told ANI.

Trading volume was more than 130 times its 20-day average, Bloomberg data showed. The Relative Strength Index was below 30, indicating that the stock may be overbought.

Indian equity benchmarks opened higher, led by the gains in ICICI Bank Ltd. and Reliance Industries Ltd.

The S&P BSE Sensex rose as much as 0.26 percent to 37,785.30 and the NSE Nifty 50 rose as much as 0.26 percent to 11,218.55. The broader market index represented by the NSE Nifty 500 Index rose as much as 0.21 percent.

The market breadth, however, was tilted in favour of sellers. About 713 stocks declined and 707 shares advanced on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Pharma Index’s 1.28 percent gain. On the flipside, the NSE Nifty IT Index was the only sectoral loser, down 0.1 percent.

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated nearly 0.1 percent intraday to 68.70 against the greenback.

Indian equity benchmarks are set for a muted start.

The S&P BSE Sensex traded 22 points lower at 37,659 during the pre-market trade while the NSE Nifty 50 rose 0.2 percent to 11,212.55.

• SORIL Infra Resources to move into ASM Framework.
• Tejas Networks to move into short term ASM Framework.
• Mangalam Drugs & Organics, Filatex, Sanwaria Consumer to move out of short term ASM Framework.
• Jubilant Industries price band revised to 10 percent.
• Reliance Naval and Engineering, Navkar Builders price band revised to 5 percent.

Nifty Earnings To Watch

• Axis Bank
• Hero MotoCorp
• Tech Mahindra

Other Earnings To Watch

• Piramal Enterprises
• PNB Housing Finance
• Prism Johnson
• NMDC
• NOCIL
• Orient Electric
• Dish TV
• Aegis Logistics
• Andhra Cements
• Balkrishna Paper Mills
• Bank of India
• Vinati Organics
• Welspun India
• Chemfab Alkalis
• Cholamandalam Investment and Finance
• Enkei Wheels
• Fertilizers and Chemicals Travancore
• Granules India
• Gujarat Gas
• Gulf Oil Lubricants
• Heidelberg Cement
• Mangalore Refinery and Petrochemicals
• New Delhi Television
• Repro India
• RPG Life Sciences
• Shoppers Stop
• Solar Industries India
• Sumeet Industries
• Swaraj Engines
• TCI Developers
• TCI Express
• United Bank of India
• Vaibhav Global
• VIP Industries

Earnings Reaction To Watch

Dr Reddy’s Lab (Q1, YoY)

• Revenue up 3 percent to Rs 3,844 crore.
• Net profit up 45 percent to Rs 663 crore.
• Ebitda at Rs 758 crore versus Rs 777 crore.
• Margin at 19.7 percent versus 20.8 percent.

Strides Pharma (Q1, YoY)

• Revenue up 45.1 percent to Rs 685.8 crore.
• Net profit at Rs 2.9 crore versus net loss at Rs 2.6 crore.
• Ebitda up 2.9 times to Rs 123.6 crore.
• Margin at 18 percent versus 9 percent.
• Raw material as percent of sales at 46 percent versus 54.3 percent.
• Finance cost up 2.1 times.

DLF (Q1, YoY)

• Revenue down 11.7 percent to Rs 1,331.2 crore.
• Net profit up 2.4 times to Rs 414.7 crore.
• Ebitda down 22.3 percent to Rs 239.7 crore.
• Margin at 18 percent versus 20.5 percent.
• Exceptional gain of Rs 296.5 crore in the current quarter.
• Other income up 40 percent to Rs 209.7 crore.

Bharat Electronic (Q1, YoY)

• Revenue flat at Rs 2,124.5 crore.
• Net profit up 11.8 percent to Rs 210.6 crore.
• Ebitda up 11.4 percent to Rs 355.1 crore.
• Margin at 16.7 percent versus 14.9 percent.
• Other income of Rs 25.8 crore in current quarter.

RNAM (Q1, YoY)

• Revenue down 17.6 percent to Rs 325.1 crore.
• Net profit up 12.9 percent to Rs 125.4 crore.
• Other expenses down 47 percent to Rs 62.9 crore.
• AUM up 6 percent to Rs 4.3 lakh crore.

Sanofi India (Q2CY19, YoY)

• Revenue up 9.4 percent to Rs 747.9 crore.
• Net profit down 2.2 percent to Rs 97.4 crore.
• Ebitda down 4.1 percent at Rs 157.8 crore.
• Margin at 21.1 percent versus 24.1 percent.
• Raw material as percent of sales at 56 percent versus 40 percent.

Muthoot Capital Services (Q1, YoY)

• Revenue up 26.2 percent to Rs 143.9 crore.
• Net profit down 22.3 percent to Rs 13.6 crore.
• Other expenses up 49 percent to Rs 22.6 crore.

Shriram City Union Finance (Q1, YoY)

• Net interest income down 1.5 percent to Rs 954.7 crore.
• Net profit up 10 percent to Rs 260 crore.

IFB Agro Industries (Q1, YoY)

• Revenue down 19.5 percent to Rs 224.1 crore.
• Net profit down 73.9 percent to Rs 3 crore.
• Ebitda down 73.1 percent to Rs 5 crore.
• Margin at 2.2 percent versus 6.7 percent.
• Spirit segment revenue up 22 percent
• Marine segment revenue down 42 percent.
• Other expenses up 11 percent.

Shalby (Q1, YoY)

• Revenue up 13.3 percent to Rs 131.4 crore.
• Net profit up 2 times to Rs 23.6 crore.
• Ebitda up 18.1 percent at Rs 29.3 crore.
• Margin at 22.3 percent versus 21.4 percent.

Cochin Shipyard (Q1, YoY)

• Revenue up 11.6 percent at Rs 735.4 crore.
• Net profit up 12.1 percent to Rs 119.1 crore.
• Ebitda up 22.5 percent at Rs 140.9 crore.
• Margin at 19.2 percent versus 17.5 percent.

• Strides Pharma’s arm has entered into a JV with China’s Sihuan Pharma. The company will own 49 percent stake in the JV and will license 4 products immediately to this JV with an option to expand the portfolio subsequently, while Sihuan Pharma will use its distribution channel to market the products across China.
• Dr. Reddy’s Laboratories’ board approved amalgamation of promoter group held company Dr. Reddy’s Holdings with itself. The holding company has 24.88 percent stake in the pharmaceutical company.
• Insecticides India received patent for concentrate formulation for 20 years. The combination will be sold by the company under the brand name ‘Aikido’.
• BEML commenced manufacturing of metro cars for Mumbai Metro project.
• Coal India sold 1.7 percent stake in the company via CPSE ETF. After this deal, the government has 69.26 percent stake in the company. Besides, the work at Coal India’s arm Mahanadi Coalfields was halted for sixth straight day amid protests over death of workers in a mine accident. It has estimated a revenue loss of Rs 85.7 crore so far.
• Muthoot Finance stated that in order to moderate gold loan growth due to spike in gold prices in last two months, fresh gold loan advance was temporarily stopped in some branches from July 25-27. Fresh advances have resumed from July 29.
• Indian Oil Corporation has made alternate arrangements for sourcing of oil to maintain supplies after imposition of U.S. sanctions on trade with Iran, the state refiner said in its annual report for the year ended March. Alternate arrangements include term contracts for U.S.-origin crude. (Bloomberg News)
• Kansai Nerolac board approved merger of three arms with self.
• Jain Irrigation: Fitch Ratings has downgraded the company’s long-term issuer default ratings (IDR) to CCC- from B-, according to Bloomberg report.

Offerings

• Affle India IPO gets 28 percent demand for shares offered on first day of sale, offer closes July 31.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.18 percent to 11,231 as of 7:45 a.m.

Asian stocks edged higher Tuesday as investors awaited news from the resumption of U.S.-China trade talks.

Shares saw modest gains in Japan, South Korea and Australia, which could see a record close if the advance holds. Hong Kong stocks also edged up despite continuing protests in the city, with China warning that unrest had gone “far beyond” peaceful protest.

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