Nifty Clocks Worst F&O Series In Nine Months; Bonds Slide; Rupee Weakens

Indian equity benchmark NSE Nifty 50 fell 4.98 percent in July series, the worst since October 2018 when it declined 13.3 percent.

The S&P BSE Sensex closed marginally lower at 37,870 and the Nifty closed at 11,252.15, down 0.17 percent. The broader market index represented by the NSE Nifty 500 Index ended flat.

The market breadth was tilted in favour of sellers. About 981 stocks declined and 788 shares advanced on National Stock exchange.

Seven out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Pharma Index’s 2.2 percent gain. On the flipside, the NSE Nifty PSU Bank Index was the top sectoral loser, down 0.68 percent.

ICICI Prudential Life Insurance

• Stock rose as much as 6.6 percent to Rs 408.35.
• Q1 gross premium up 14.7 percent to Rs 6329 crore.

Varun Beverages

• Stock rose as much as 8.2 percent to Rs 640.
• Ex-date for bonus issue at 1:2

Shriram Transport Finance

• Stock rose as much as Rs 1,015.
• Q1 net profit up 10.7 percent to Rs 634.3 crore.

Caplin Point Lab

• Stock rose as much as 13.1 percent to Rs 436.55
• The company received EIR for injectable facility by the U.S. FDA

The Indian rupee erased gains against the U.S. dollar. The home currency depreciated as much as 0.13 percent to 69.06 against the greenback.

The yield on the 10-year benchmark jumped as much as 12 basis points to 6.55 percent after the news agency firm Cogencis reported that Prime Minister Modi’s office doesn’t favour a FX-denominated overseas sovereign bond issuance.

Sovereign bonds are trading lower as there is ‘less clarity’ in markets as to the size and nature of the overseas bond sale, Bloomberg reported quoting Badrish Kulhalli, head of fixed income at HDFC Life Insurance. “The market was expecting a sizable dollar issuance to replace domestic borrowing,” Kulhalli said.

Indian equity benchmark NSE Nifty 50 is set for its worst F&O series since October 2018.

• JP Morgan is aware about reports on Supreme Court’s findings in the Amrapali Group.
• However, JP Morgan has not been asked to give any information by the court.

Source: Bloomberg reported quoting JP Morgan Asset Management's spokesperson

About 12.7 lakh shares changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

The large-cap stocks will once again start looking attractive if the Nifty slips to 11,000 levels, according to ICICI Securities' Chief Investment Officer Piyush Garg.

Though Garg said a 5-7 odd percent decline from peak is par for the course, he does not recommend fresh investments at current levels. He expects the broader market to take significant time to recover.

“We don’t know whether the decline is over or not,” he told BloombergQuint in an interview.

Indian equity benchmarks continued to fluctuate between gains and losses as Infosys Ltd. Tata Consultancy Services Ltd. were offset by losses in Reliance Industries Ltd. and Bajaj Finance Ltd.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 37,878 and 11,278 resectively.

The market breadth was tilted in favour of sellers. About 987 stocks declined and 746 shares declined on National Stock Exchange.

About 16.7 lakh shares of ITC Changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of Sagar Cements extended gains for the second consecutive trading sessions and rose as much as 15.6 percent, the most since September 2018, to Rs 722.

Trading volume was 130 times its 20-day average, Bloomberg data showed. Of the shares traded, 48 percent were at the ask price and 38 percent were at the bid.

The stock traded at 25 times its estimated earnings per share for the coming year, according to Bloomberg data. The scrip declined 11 percent in the past 12 months compared to a 2.6 percent gain in the Sensex.

Shares of Talwalkars Better Value Fitness and Talwalkars Healthclubs hit lower circuit for the sixth consecutive trading session.

Both the stocks, which ASM Framework, has declined 55 percent during the period.

Shares of Bajaj Finance fell as much as 3.2 percent to Rs 3,072.55 after the company announced its June quarter results.

Key Earnings Highlights (Q1, YoY)

• Net profit up 42.9 percent to Rs 1,195.25 crore.
• Revenue up 47.4 percent to Rs 5,801.25 crore.
• Assets under management rose 41 percent to Rs 1.28 lakh crore.
• Loan losses and provisions (expected credit loss) up 69 percent to Rs 551 crore.
• Net interest income 43 percent to Rs 3,695 crore.
• Gross NPA at 1.6 percent versus 1.54 percent (QoQ).
• Net NPA at 0.64 percent versus 0.63 percent (QoQ).

Shares of Sadbhav Infrastructure Project extended gains for the fifth consecutive trading session, their longest gaining streak in over 11 months.

The stock rose as much as 17 percent, the most since July 17, to Rs 80.

Trading volume was almost five times its 20-day average, Bloomberg data showed. The Relative Strength Index was above 70, indicating that the stock may be overbought. The scrip advanced 42 percent in the past five days and rose 11 percent in the past 30 days.

Indian equity benchmarks erased gains led by the declines in Reliance Industries ltd. and Larsen & Toubro Ltd.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 37,874 and 11,278 respectively as of noon. The broader market represented by the NSE Nifty 500 Index fell 0.15 percent.

The market breadth was tilted in favour of sellers. About 857 stocks declined and 812 shares advanced on national Stock Exchange.

Eight out of 11 sectoral gauges compiled by National Stock Exchange traded higher, led by the NSE Nifty NSE Nifty Pharma Index’s 1.6 percent gain. On the flipside, the NSE Nifty Metal Index was the top sectoral loser, down 0.8 percent.

Shares of Tata Motors fell as much as 3.3 percent to Rs 146.30 ahead of results announcement.

Here are the analysts consensus estimates tracked by Bloomberg:

Earnings Preview (Q1, YoY)

• Revenue seen 13 percent lower at Rs 57,800 crore.
• Net loss seen widening to Rs 1,970 crore from Rs 1,902 crore.
• Ebitda seen 20 percent lower at Rs 4,030 crore.
• Margin seen at 7 percent versus 7.6 percent.

Indian equity benchmarks traded higher after falling for five consecutive trading sessions.

The S&P BSE Sensex rose 0.47 percent to 38,023 and the NSE Nifty 50 rose 0.42 percent to trade above 11,300. The broader market represented by the NSE Nifty 500 Index rose 0.45 percent.

The market breadth was tilted in favour of buyers. About 886 shares advanced and 730 stocks declined on National Stock Exchange.

Shares of JSW Steel rose as much as 1.02 percent to Rs 257.85.

The steel manufacturer is planning to raise $500-700 million from overseas investors via loans or bond issues, Economic Times reported, citing unidentified people with knowledge of the matter.

The stock traded at 11 times its estimated earnings per share for the coming year.

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.”

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

Premium on the contract which is set to expire today rose 16.36 percent to Rs 3.20. Over 15.4 lakh shares were added to the open interest which stood at over 53.06 lakh shares.

Bharti Infratel (Q1, QoQ)

• Stock rose as much as 1.7 percent to Rs 273.95.
• Revenue up 3.1 percent to Rs 3,712 crore.
• Net profit up 45.9 percent to Rs 887 crore.
• Ebitda up 27 percent to Rs 1,896 crore.
• Margin at 51.1 percent versus 41 percent.
• Numbers aided by Ind AS-116 adoption and one-offs during the quarter.

Quess Corp (Q1, YoY)

• Stock fell as much as 2.6 percent to Rs 441.05.
• Revenue up 21.7 percent to Rs 2,394.7 crore.
• Net profit up 3.5 percent to Rs 56.3 crore.
• Ebitda up 43.6 percent to Rs 147.2 crore.
• Margin at 6.1 percent versus 5.2 percent.
• Employee expenses up 25 percent to Rs 1,934.2 crore.
• Depreciation up 94 percent and finance cost up 52 percent

PI Industries (Q1, YoY)

• Stock rose as much as 4.1 percent to Rs 1,119.40.
• Revenue up 24.5 percent to Rs 754.1 crore.
• Net profit up 23.4 percent to Rs 100.8 crore.
• Ebitda up 28.2 percent to Rs 151.4 crore.
• Margin at 20.1 percent versus 19.5 percent.

Shriram Transport Finance (Q1, YoY)

• Stock rose as much as 9.2 percent to Rs 1,010.
• Net interest income up 5.2 percent to Rs 1943.7 crore.
• Net profit up 10.7 percent to Rs 634.3 crore.

Oberoi Realty (Q1, YoY)

• Stock fell as much as 6.3 percent to Rs 515.20.
• Revenue down 32.1 percent to Rs 603.3 crores.
• Net profit down 50.8 percent to Rs 152.1 crore.
• Ebitda down 49 percent to Rs 235.3 crore.
• Margin at 39 percent versus 52 percent.
• Finance cost up 4.9 times to Rs 23.9 crore.

ICICI Prudential Life Insurance (Q1, YoY)

• Stock rose as much as 4.3 percent to Rs 399.50.
• Gross premium up 14.7 percent to 6329.27 crore.
• Net profit up 1.2 percent to Rs 284.9 crore.
• New business up 26.6 percent to Rs 309 crore
• Value of new business premiums margin at 21 percent.
• 13th month persistency at 84.4 percent.
• 61st month persistency at 57.3 percent.

Syndicate Bank (Q1, YoY)

• Stock fell as much as 4.2 percent to Rs 33.95.
• Net interest income up 19 percent to Rs 1,792 crore.
• Net loss at Rs 980.4 crore versus net loss of Rs 1,281.4 crore
• Provisions at Rs 2,085.3 crore versus 831.2 crore (QoQ).
• GNPA at 11.76 percent versus 11.37 percent. (QoQ).
• NNPA at to 5.96 percent from 6.16 percent (QoQ).

IDFC First Bank (Q1, YoY)

• Stock rose as much as 4.1 percent to Rs 39.15.
• Net interest income up 2.3 times at Rs 1248.3 crore.
• Net loss at Rs 611.6 crore versus net profit of Rs 198.9 crore.
• Provisions at Rs 1,280.8 crore versus Rs 655.4 crore (QoQ).
• GNPA at 2.66 percent versus 2.43 percent. (QoQ).
• NNPA at 1.35 percent versus 1.27 percent. (QoQ).

Syngene International (Q1, YoY)

• Stock fell as much as 4.3 percent to Rs 301.10.
• Revenue up 3.7 percent to Rs 420.9 crore.
• Net profit up 8.8 percent to Rs 72 crore.
• Ebitda up 20.8 percent at Rs 119.5 crore.
• Margin at 28.4 percent from 24.4 percent.
• Employee expenses up 23 percent at Rs 132.2 crore.
• Hyderabad R&D facility to be operational by the second quarter FY20.

Shares of Sandhar Technologies rose as much as 1.7 percent to Rs 273.95.

The company signed pact for a Joint Venture with Korea’s Han Shin Corporation for manufacturing and selling electronic parts and accessories for the automotive industries in India.

Trading volume was more than three times its 20-day average, Bloomberg data showed. Of the shares traded, 32 percent were at the ask price and 49 percent were at the bid.

Shares of Intellect Design Arena fell as much as 15 percent, the most in nearly three years, to Rs 211.50 after the company’s profit fell 92 percent on a sequential basis in June quarter.

Key Earnings Highlights (Q1, QoQ)

• Revenue down 13.3 percent to Rs 342.8 crore.
• Net profit down 92 percent to Rs 3.4 crore.
• EBIT down 82.6 percent to Rs 7.7 crore
• Margin at 2.3 percent versus 11.2 percent.
• Other income of Rs 10 crore and exceptional gain of Rs 5.5 crore in current quarter.

Indian equity benchmarks opened higher in today’s trade.

The S&P BSE Sensex rose as much as 0.27 percent to 37,951 and the NSE Nifty 50 rose as much as 0.24 percent to 11,298.70. The broader market index represented by the NSE Nifty 500 Index rose as much as 0.23 percent.

The market breadth, however, was tilted in favour of sellers. About 742 stocks declined and 672 shares advanced on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Pharma Index’s 0.94 percent gain. On the flipside, the NSE Nifty Realty Index was the top sectoral loser, down 0.82 percent.

The Indian rupee opened little changed at 68.99 against the U.S. dollar. Dealers see the pair in a range of 68.70-69.20 a dollar in the day.

Indian equity benchmarks are headed for a muted start.

The S&P BSE Sensex rose 0.25 percent to 37,943 during the pre-market and the NSE Nifty 50 rose 0.21 percent to 11,295.50.

• Nifty July futures closed at 11,277.8, premium of 6.5 points versus 3 points.
• Nifty futures open interest. across series up 3 percent, adds 5.7 lakh shares in open interest.

Nifty

• Bank Nifty July futures closed at 28,976, premium of 24 points versus 66 points.
• Bank Nifty futures open interest across series up 3 percent, adds 51,700 shares in open interest.
• Nifty Rollover at 53 percent, Nifty Bank Rollover at 51 percent.

Options

• Nifty PCR at 0.96 versus 1.05.

Nifty Monthly Expiry July 25

• Max open interest on call side at 11,400 (37.6 lakh shares)
• Max open interest on put side at 11,300 (22.2 lakh shares)
• Max open interest addition seen in 11,300C (+17.3 lakh shares), 11,350C (+9.5 lakh shares)

Stocks In F&O Ban

In Ban

• Dish TV
• IDBI Bank

• Varun Beverages ex-date for bonus issue at 1:2
• Talwalkers Lifestyles, Talwalkers Healthclubs to move into ASM Framework.
• Ballarpur Industries to move into short term ASM Framework.
• Mukand to move out of Short term ASM Framework .
• Talwalkers Better Value Fitness, Talwalkers Healthclubs price band revised to 5 percent.

Nifty Earnings To Watch

• Bajaj Finance
• Bajaj Finserv
• Tata Motors

Other Earnings To Watch

• Ambuja Cements
• Gruh Finance
• PVR
• Apcotex Industries
• AU Small Finance Bank
• Bank of Baroda
• Bharat Bijlee
• Biocon
• Eimco Elecon (India)
• Foseco India
• Genus Power Infrastructures
• Grindwell Norton
• IFB Industries
• Mold-Tek Technologies
• MphasiS
• Onward Technologies
• Persistent Systems
• Rane Brake Lining
• Taj GVK Hotels & Resorts
• Tata Coffee
• Thirumalai Chemicals
• Central Depository Services
• Greenlam Industries
• Jubilant Industries
• Som Distilleries & Breweries
• Tata Steel BSL
• Westlife Development
• South Indian Bank

Earnings Reactions To Watch

Bharti Infratel (Q1, QoQ)

• Revenue up 3.1 percent to Rs 3,712 crore.
• Net profit up 45.9 percent to Rs 887 crore.
• Ebitda up 27 percent to Rs 1,896 crore.
• Margin at 51.1 percent versus 41 percent.
• Numbers aided by Ind AS-116 adoption and one-offs during the quarter.

Quess Corp (Q1, YoY)

• Revenue up 21.7 percent to Rs 2,394.7 crore.
• Net profit up 3.5 percent to Rs 56.3 crore.
• Ebitda up 43.6 percent to Rs 147.2 crore.
• Margin at 6.1 percent versus 5.2 percent.
• Employee expenses up 25 percent to Rs 1,934.2 crore.
• Depreciation up 94 percent and finance cost up 52 percent

PI Industries (Q1, YoY)

• Revenue up 24.5 percent to Rs 754.1 crore.
• Net profit up 23.4 percent to Rs 100.8 crore.
• Ebitda up 28.2 percent to Rs 151.4 crore.
• Margin at 20.1 percent versus 19.5 percent.

Shriram Transport Finance (Q1, YoY)

• Net interest income up 5.2 percent to Rs 1943.7 crore.
• Net profit up 10.7 percent to Rs 634.3 crore.

Oberoi Realty (Q1, YoY)

• Revenue down 32.1 percent to Rs 603.3 crores.
• Net profit down 50.8 percent to Rs 152.1 crore.
• Ebitda down 49 percent to Rs 235.3 crore.
• Margin at 39 percent versus 52 percent.
• Finance cost up 4.9 times to Rs 23.9 crore.

ICICI Prudential Life Insurance (Q1, YoY)

• Gross premium up 14.7 percent to 6329.27 crore.
• Net profit up 1.2 percent to Rs 284.9 crore.
• New business up 26.6 percent to Rs 309 crore
• Value of new business premiums margin at 21 percent.
• 13th month persistency at 84.4 percent.
• 61st month persistency at 57.3 percent.

Syndicate Bank (Q1, YoY)

• Net interest income up 19 percent to Rs 1,792 crore.
• Net loss at Rs 980.4 crore versus net loss of Rs 1,281.4 crore
• Provisions at Rs 2,085.3 crore versus 831.2 crore (QoQ).
• GNPA at 11.76 percent versus 11.37 percent. (QoQ).
• NNPA at to 5.96 percent from 6.16 percent (QoQ).

IDFC First Bank (Q1, YoY)

• Net interest income up 2.3 times at Rs 1248.3 crore.
• Net loss at Rs 611.6 crore versus net profit of Rs 198.9 crore.
• Provisions at Rs 1,280.8 crore versus Rs 655.4 crore (QoQ).
• GNPA at 2.66 percent versus 2.43 percent. (QoQ).
• NNPA at 1.35 percent versus 1.27 percent. (QoQ).

Intellect Design Arena (Q1, QoQ)

• Revenue down 13.3 percent to Rs 342.8 crore.
• Net profit down 92 percent to Rs 3.4 crore.
• EBIT down 82.6 percent to Rs 7.7 crore
• Margin at 2.3 percent versus 11.2 percent.
• Other income of Rs 10 crore and exceptional gain of Rs 5.5 crore in current quarter.

Syngene International (Q1, YoY)

• Revenue up 3.7 percent to Rs 420.9 crore.
• Net profit up 8.8 percent to Rs 72 crore.
• Ebitda up 20.8 percent at Rs 119.5 crore.
• Margin at 28.4 percent from 24.4 percent.
• Employee expenses up 23 percent at Rs 132.2 crore.
• Hyderabad R&D facility to be operational by the second quarter FY20.

• Yes Bank: ICRA downgraded long-term ratings across various programs aggregating to Rs 32,911 crore.
• Cox & Kings defaulted on payment of commercial papers worth Rs 174 crore which was due on July 24.
• DHFL defaulted on payment of NCDs worth Rs 8.07 crore which was due on July 23.
• IL&FS: New board has taken steps to address resolution of more than Rs 20,000 crore of debt owed by IL&FS group companies, according to its statement. The board has focused on ensuring the group companies remain a “going concern”.
• BHEL and NTPC signed MoU for forming a JV company to set up a 800 MW Technology Demonstration Plant at NTPC’s existing power plant in Chhattisgarh.
• Vodafone Idea: Commenting on penalty by Digital Communications Commission, the company said that it abides by applicable laws and will explore all options, including seeking legal help to protect the company’s interests. DCC, on Wednesday approved imposing cumulative penalty of Rs 3,050 crore on Bharti Airtel, Vodafone and Idea, now merged as Vodafone Idea Ltd. The penalty on Airtel and Vodafone works out to be about Rs 1,050 crore each; while in case of Idea, it comes to about Rs 950 crore. Vodafone India and Idea Cellular merged their operations in 2018.
• Sandhar Technologies signed a JV with Korea’s Han Shin Corporation for manufacturing and selling electronic parts and accessories for the automotive industries in India.
• Power Finance Corporation Reliance Capital increased their stake by 2.8 percent to 5.15 percent.
• Bharat Electronics: Reliance Capital increased their stake by 2.8 percent to 6.05 percent.
• Rane Madras: Board approved investment up to $30 million in its U.S. arm, which will be in the business of die casting over the next five years.
• Neogen Chemicals received a request for waiver of summons in relation to a suit filed by Neogen Corporation in the U.S. District Court for alleged trademark infringement related to the use of the brand "Neogen" by Neogen Chemicals.
• SpiceJet to remain in focus after Boeing warned it will consider slowing or even temporarily halting production of the 737 Max, the company’s most important jetliner, if a global flying ban drags on longer than anticipated. SpiceJet has ordered 129 Boeing 737 Max and a halt in production might delay their expansion plans. Besides, Boeing has booked $4.9 billion related to estimated potential concessions and other considerations and SpiceJet could have received compensations from Boeing in Q1 for Max groundings.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.22 percent to 11,294 as of 7:44 a.m.

Asian stocks had a muted open Thursday amid a mixed picture for corporate earnings. Benchmark indexes were little changed as trading got underway in Tokyo, Sydney and Seoul. U.S. futures were flat, while Nasdaq contracts declined.

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