Sensex, Nifty Log Worst July In 17 Years

Indian equity benchmarks clocked their work July since 2002.

The S&P BSE Sensex fell 4.9 percent this month to end the month at 37,481.12 and the NSE Nifty 50 closed nearly 6 percent lower at 11,118. The broader market represented by the NSE Nifty 500 fell nearly 6.5 percent.

The benchmark indices halted a two-day fall. The 31 share index closed 0.22 percent higher and the 50-stock index closed 0.29 percent higher. The 500-share gauge closed 0.42 percent higher.

The market breadth, however, was tilted in favour of sellers. About 920 stocks declined and 866 shares advanced on National Stock Exchange.

Eight out of 11 sectoral gauges compiled by National Stock Exchange ended higher, led by the NSE Nifty Metal Index’s 2.3 percent gain. On the flispdie, the NSE Nifty Media Index was the top sectoral loser, down 2.9 percent.

Gujarat Gas

• Stock rose as much as 11.8 percent to Rs 182.95.
• Revenue up 48.1 percent to Rs 2,614.6 crore.
• Net profit up 91.6 percent to Rs 234 crore.
• Ebitda up 87.7 percent to Rs 466.6 crore.
• Margin at 17.8 percent versus 14.1 percent.
• Earnings expected to double in next two years

JSW Steel

• Stock rose as much as 3.5 percent to Rs 238.25.
• The company was been declared preferred bidder for another 3 iron ore mines in auctions held by Karnataka.
• The estimated resources of these mines stand at around 93 MMT.

Quess Corp

• Stock rose as much as 9.6 percent to Rs 438.90.
• Shares snapped two-day fall.

Lemon Tree Hotels

• Stock rose as much as 9.9 percent to Rs 64.40.
• Volumes trading at 16 times its 20-day average.

Indian equity benchmarks managed to hold gains, but are headed for worst July since 2002.

The S&P BSE Sensex rose 0.2 percent to 37,468 as of 3 p.m. and the NSE Nifty 50 rose 0.23 percent to 11,111.

The market breadth was tilted in favour of sellers. About 969 stocks declined and 775 shares advanced on National Stock Exchange

Future Retail (Q1, YoY)

• Stock fell as much as 3.6 percent to Rs 405.10.
• Revenue up 13.5 percent to Rs 5149.36 crore
• Net Profit up 6 percent to Rs 162.5 crore
• Ebitda up 186 percent to Rs 632.84 crore
• Margin at 12.3 percent versus 4.9 percent

Allahabad Bank (Q1, YoY)

• Stock fell as much as 5.1 percent to Rs 37.05
• Net profit at Rs 128 crore versus loss of Rs 1,944 crore
• Net interest income down 10 percent to Rs 1,530 crore
• Provisions down 81 percent to Rs 1,008.8 crore (QoQ)
• Gross NPA at 17.43 percent versus 15.97 percent (QoQ)
• Net NPA at 5.71 percent versus 7.32 percent (QoQ)

Blue Dart (Q1, YoY)

• Stock fell as much as 1.3 percent to Rs 2,370.
• Revenue up 7.3 percent to Rs 786.55 crore
• Net Profit down 79 percent to Rs 4.59 crore
• Ebitda flat at Rs 44.55 crore
• Margin at 5.7 percent versus 6.1 percent

Vardhman Holdings

• Stock fell as much as 5.2 percent to Rs 1,505.15
• Trading volume more than 50 times its 20-day average.

Shoppers Stop

• Stock rose as much as 2.5 percent to Rs 387.40.
• Trading volume more than 30 times its 20-day average.

Solar Industries

• Stock fell as much as 2.9 percent to Rs 1,100.60.
• Trading volume more than 20 times its 20-day average.

Vaibhav Global

• Stock rose as much as 3.7 percent to Rs 905.
• Trading volume was almost 30 times its 20-day average.

Shares of Indian Oil Corporation Ltd. rose as much as 2.6 percent to Rs 136.90 after the company announced its June quarter results.

Key Earnings Highlights (Q1, QoQ)

• Revenue up 4.2 percent to Rs 1.31 lakh crore.
• Net profit fell 41 percent to Rs 3,596 crore.
• Ebitda down 23.22 percent to Rs 8,350 crore.
• Margin at 6.35 percent versus 8.6 percent.
• GRM at $4.69 a barrel.

Shares of Apollo Tyres rose as much as 4.9 percent to Rs 157 after the company announced its June quarter results.

Key Earnings Highlights (Q1, YoY)

• Revenue up 0.7 percent to Rs 4331 crore.
• Net profit down 43.4 percent to Rs 142 crore.
• Ebitda down 12.1 percent to Rs 474 crore.
• Margin at 10.9 percent versus 12.5 percent.

Indian equity benchmarks fluctuated between gains and losses, struggling to gain momentum.

The S&P BSE Sensex and the NSE Nifty 50 traded marginally higher at 37,415 and 11,095 respectively as of 2 p.m.

The market breadth was tilted in favour of sellers. About 1,005 stocks declined and 731 shares advanced on National Stock Exchange.

Shares of Carborundum Universal fell as much as 3.7 percent to Rs 306 after the company announced its quarterly results.

Key Earnings Highlights (Q1, YoY)

• Revenue up 7.3 percent to Rs 671.4 crore
• Net Profit down 16 percent to Rs 52.77 crore
• Ebitda down 4 percent to Rs 95.24 crore
• Margin at 14.2 percent versus 15.8 percent.

DSP Mutual Fund Says

• DSP Credit Risk Fund scheme takes 50% haircut on Coffee Day Natural Resources Pvt. Ltd. exposure
• Scheme has exposure to CDNRPL's secured NCDs of face value of Rs 69 crore, as of July 29
• Scheme's exposure is secured by a pledge of listed shares of Coffee Day Enterprises Ltd. & a land parcel
• Coffee Day Enterprises has sought 2 weeks to come back with concrete plan regarding exposure

Source: Press release

Coffee Day Says:

• Nitin Bagmane appointed as interim chief operating officer
• The company will set up executive committee
• Forms panel to explore opportunities to deleverage
• Thoroughly investigate BG Siddhartha’s letter
• Appoints Cyril Amarchand Mangaldas as its legal counsel

Source: Exchange filing

• Spandana Sphoorty Financial Ltd looks to open IPO on August 5
• The price band is set at Rs 853 to Rs 856 per equity share
• The offer consists of a fresh issue of up to Rs 400 crore and an offer for sale of up to 93.56 lakh equity shares.

The NSE Nifty MidCap 100 rose 0.68 percent compared to 0.03 percent decline in Nifty. The gains in the mid-cap index were led by Quess Corp Ltd. and TVS Motor Company Ltd.

Indian equity benchmarks pared losses and traded in a narrow range.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 37,383 and 11,080 respectively.

About 10 lakh shares of ITC changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of ITC pared losses to trade little changed at Rs 268.95 after the block deal. The stock fell 1.1 percent intraday.

U.S. and European stock futures ticked higher, and the dollar and Treasuries marked time, ahead of the Federal Reserve’s projected interest-rate cut.

Equities retreated from Tokyo and Seoul to Sydney and Shanghai. Hong Kong shares were hit hardest before an early close due to a storm.

• Japan’s Topix index fell 0.7 percent.
• S&P 500 futures rose 0.2 percent.
• Euro Stoxx 50 futures also rose 0.2 percent.
• The MSCI Asia Pacific Index fell 0.6 percent.

Catch all the global markets update here.
Source: Bloomberg

Indian equity benchmarks pared losses, led by the gains in IndusInd Bank Ltd. and Hindustan Unilever Ltd.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 27,379 and 11,074 respectively as of noon.

The Nifty Index sees resistance in the range of 11,250-11,300 and the immediate support levels are now placed at 10,980 and 10,840, homegrown brokerage and research firm Angel Broking said in a report.

“We continue with our advice to avoid taking aggressive positions until there are any signs of reversal on the price front,” the research firm said.

Affle India IPO gets 100 percent demand for shares offered on third day sale, according to Bloomberg.

Eight out of 11 sectoral gauges compiled by National Stock Exchange traded lower, led by the NSE Nifty Realty Index’s 2.8 percent fall. On the flipside, the NSE Nifty Auto Index was the top sectoral performer, up 0.83 percent.

The NSE Nifty 50 fell as much as 0.78 percent to give up 11,000-mark

Hero MotoCorp (Q1, YoY)

• Stock rose as much as 2.4 percent to Rs 2,313.80.
• Revenue down 8.9 percent to Rs 8,030 crore.
• Net profit up 38.3 percent to Rs 1,257 crore.
• Ebitda down 15.9 percent to Rs 1,158.4 crore.
• Margin at 14.4 percent versus 15.6 percent.
• Exceptional gain of Rs 738 crore in current quarter.

Tech Mahindra (Q1, QoQ)

• Stock fell as much as 4.9 percent to Rs 608.80.
• Revenue down 2.7 percent to Rs 8,653 crore.
• Net profit down 15 percent to Rs 959 crore.
• EBIT down 27 percent to Rs 993 crore.
• Margin at 11.5 percent versus 15.4 percent.

Dish TV (Q1, YoY)

• Stock fell as much as 4.2 percent to Rs 27.20.
• Revenue down 44.1 percent to Rs 926.3 crore.
• Net loss at Rs 32 crore versus net profit at Rs 27.9 crore.
• Ebitda down 3.7 percent to Rs 536 crore.
• Margin at 57.9 percent versus 33.6 percent.
• Operating expenses down 74 percent to Rs 231.1 crore.

Gujarat Gas (Q1, YoY)

• Stock rose as much as 11.8 percent to Rs 182.95.
• Revenue up 48.1 percent to Rs 2,614.6 crore.
• Net profit up 91.6 percent to Rs 234 crore.
• Ebitda up 87.7 percent to Rs 466.6 crore.
• Margin at 17.8 percent versus 14.1 percent.

Gulf Oil Lubricants (Q1, YoY)

• Stock rose as much as 6 percent to Rs 783.30.
• Revenue up 12.9 percent to Rs 440.7 crore.
• Net profit up 21.4 percent to Rs 48.7 crore.
• Ebitda up 20.6 percent to Rs 77.9 crore.
• Margin at 17.7 percent versus 16.5 percent.

Shoppers Stop (Q1, YoY)

• Stock fell as much as 7.3 percent to Rs 351.
• Revenue flat at Rs 854 crore.
• Net loss at Rs 0.1 crore versus net profit at Rs 4.7 crore.
• Ebitda up 3.7 times to Rs 138.5 crore.
• Margin at 16.2 percent versus 4.4 percent.
• Finance costs up 14 times to Rs 49.2 crore, depreciation up 2.9 times to Rs 90.4 crore.
• Lease expenses down 88 percent to Rs 11.4 crore versus Rs 99.1 crore.
• Change impacted due to IND AS 116 implementation-Rs 85.6 crore of reduction in lease expenses.

Vinati Organics (Q1, YoY)

• Stock fell as much as 3.7 percent to Rs 1,830.
• Revenue up 11.9 percent to Rs 290.7 crore.
• Net profit up 28.1 percent to Rs 82.4 crore.
• Ebitda up 38.5 percent at Rs 120.1 crore.
• Margin at 41.3 percent versus 33.4 percent.
• Raw material as percent of sales at 42.3 percent versus 50.4 percent.

Nifty’s 11,000 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 tomorrow, rose 38.96 percent to Rs 33.95. Over 9.88 lakh shares were added to the open interest which stood at over 26.78 lakh shares.

About 20 lakh shares of ICICI Bank changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

Indian equity benchmarks extended declines for the third consecutive trading session.

The S&P BSE Sensex fell 0.4 percent to 37,241 as of 10 a.m. and the NSE Nifty 50 fell 0.4 percent to 11,040. The broader market represented by the NSE Nifty 500 Index fell 0.5 percent.

India’s benchmark bond gained for the second consecutive trading session. The yield on the 10-year note fell as much as three basis points to 6.35 percent.

Shares of Axis Bank fell as much as 7 percent, the most since September 2018, to Rs 657.80 after the company announced its quarterly results for the three months ended June.

Key Earnings Highlights (Q1, YoY)

• Net interest income up 13 percent to Rs 5,844 crore.
• Net profit up 95 percent to Rs 1,370 crore.
• Provisions at Rs 3,814.6 crore versus Rs 3,337.7 crore. (Rs 2,711.4 crore QoQ)
• GNPA at 5.25 percent versus 5.26 percent. (QoQ)
• NNPA at 2.04 percent versus 2.06 percent. (QoQ)

Here’s what analysts had to say about the stock post June quarter results.

Shares of Lemon Tree Hotels fell as much as 4.3 percent to Rs 56.10.

About 20 lakh shares of the company changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

The stock traded at 60 times its estimated earnings per share for the coming year, according to Bloomberg data. The Relative Strength Index was below 30, indicating that the stock may be overbought.

Shares of Coffee Day Enterprises hit their lower circuit of 20 percent at Rs 122.75.

The body of Founder VG Siddhartha has been found on the banks of Netravati River in Mangaluru.

Besides, the Income Tax Department said that Siddhartha had admitted to holding black money after income tax raids were conducted against him and his companies, according to a PTI report. They also questioned Siddhartha’s signature on an unverified letter, saying it didn't match with those on documents submitted with it by the Cafe Coffee Day founder, the report added.

The hit a fresh record low today. Trading volume was more than 11 times its 20-day average, according to Bloomberg data. The Relative Strength Index was below 30, indicating that the stock may be oversold.

Indian equity benchmarks opened lower, extending their decline for the third consecutive trading session.

The S&P BSE Sensex fell as much as 0.7 percent or 261 points to 37,135.93 and the NSE Nifty 50 fell as much as 0.64 percent to 11,014.80. The broader market represented by the NSE Nifty 500 Index fell as much as 0.6 percent.

The market breadth was tilted in favour of sellers. About 1,006 stocks declined and 430 shares advanced on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Realty Index’s 0.9 percent fall. On the flipside, the NSE Nifty Auto Index was the only sectoral gainer, up 0.1 percent.

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.1 percent to 68.92 against the greenback.

Indian equity benchmarks are set to open lower.

The S&P BSE Sensex fell over 70 points to 37,338 during the pre-market trade and the NSE Nifty 50 fell 0.2 percent to 11,062.50.

Nifty Earnings To Watch

• Eicher Motors
• Indian Oil Corporation
• UPL

Other Earnings To Watch

• Tata Global Beverages
• Trent
• Ashok Leyland
• Ajanta Pharma
• Symphony
• Sequent Scientific
• Indiamart Intermesh
• Jagran Prakashan
• JBF Industries
• Kabra Extrusion Technik
• LG Balakrishnan & Bros
• Mahindra Holidays & Resorts
• Maithan Alloys
• MAS Financial Services
• Motilal Oswal Financial Services
• Munjal Showa, Allahabad Bank
• Apollo Tyres, BF Utilities
• Birla Precision Technologies
• Blue Dart Express
• Carborundum Universal
• CARE Ratings
• Container Corporation of India
• CreditAccess Grameen
• Future Retail
• Future Supply Chain Solutions
• Genus Paper & Boards
• HCL Infosystems
• Heritage Foods
• Hester Biosciences
• Nelcast
• Shyam Century Ferrous
• Sicagen India
• Star Cement
• Tanla Solutions
• Zee Media Corporation
• Zydus Wellness
• Indiabulls Ventures

Earnings Reaction To Watch

Hero MotoCorp (Q1, YoY)

• Revenue down 8.9 percent to Rs 8,030 crore.
• Net profit up 38.3 percent to Rs 1,257 crore.
• Ebitda down 15.9 percent to Rs 1,158.4 crore.
• Margin at 14.4 percent versus 15.6 percent.
• Exceptional gain of Rs 738 crore in current quarter.

Tech Mahindra (Q1, QoQ)

• Revenue down 2.7 percent to Rs 8,653 crore.
• Net profit down 15 percent to Rs 959 crore.
• EBIT down 27 percent to Rs 993 crore.
• Margin at 11.5 percent versus 15.4 percent.

Axis Bank (Q1, YoY)

• Net interest income up 13 percent to Rs 5,844 crore.
• Net profit up 95 percent to Rs 1,370 crore.
• Provisions at Rs 3,814.6 crore versus Rs 3,337.7 crore. (Rs 2,711.4 crore QoQ)
• GNPA at 5.25 percent versus 5.26 percent. (QoQ)
• NNPA at 2.04 percent versus 2.06 percent. (QoQ)

Dish TV (Q1, YoY)

• Revenue down 44.1 percent to Rs 926.3 crore.
• Net loss at Rs 32 crore versus net profit at Rs 27.9 crore.
• Ebitda down 3.7 percent to Rs 536 crore.
• Margin at 57.9 percent versus 33.6 percent.
• Operating expenses down 74 percent to Rs 231.1 crore.

Gujarat Gas (Q1, YoY)

• Revenue up 48.1 percent to Rs 2,614.6 crore.
• Net profit up 91.6 percent to Rs 234 crore.
• Ebitda up 87.7 percent to Rs 466.6 crore.
• Margin at 17.8 percent versus 14.1 percent.

Gulf Oil Lubricants (Q1, YoY)

• Revenue up 12.9 percent to Rs 440.7 crore.
• Net profit up 21.4 percent to Rs 48.7 crore.
• Ebitda up 20.6 percent to Rs 77.9 crore.
• Margin at 17.7 percent versus 16.5 percent.

Shoppers Stop (Q1, YoY)

• Revenue flat at Rs 854 crore.
• Net loss at Rs 0.1 crore versus net profit at Rs 4.7 crore.
• Ebitda up 3.7 times to Rs 138.5 crore.
• Margin at 16.2 percent versus 4.4 percent.
• Finance costs up 14 times to Rs 49.2 crore, depreciation up 2.9 times to Rs 90.4 crore.
• Lease expenses down 88 percent to Rs 11.4 crore versus Rs 99.1 crore.
• Change impacted due to IND AS 116 implementation-Rs 85.6 crore of reduction in lease expenses.

Vinati Organics (Q1, YoY)

• Revenue up 11.9 percent to Rs 290.7 crore.
• Net profit up 28.1 percent to Rs 82.4 crore.
• Ebitda up 38.5 percent at Rs 120.1 crore.
• Margin at 41.3 percent versus 33.4 percent.
• Raw material as percent of sales at 42.3 percent versus 50.4 percent.

• India Fiscal Deficit in rupees for April-June period.
• India Eight Infrastructure Industries Index for June, prior 5.1 percent.

• Coffee Day Enterprises: Body of VG Siddhartha, has been found on the banks of Netravati River in Mangaluru, according to ANI report. Besides, the Income Tax Department said that VG Siddhartha had admitted to holding black money after income tax raids were conducted against him and his companies. They also questioned Siddhartha’s signature on an unverified letter, saying it didn't match with those on documents submitted with it by the Cafe Coffee Day founder.
• RBL Bank said that all Coffee Day Group loan accounts are Standard and Performing. The exposure is there  to certain operating entities of the Coffee Day Group in the logistics, coffee and real estate businesses.
• Dr Reddy’s Laboratories: The U.S. FDA issued Form 483 with five observations to the company’s Unit II Lab in Andhra Pradesh from the The inspection was conducted from July 8-12, according to Bloomberg report.
• JSW Steel stated that it has been declared preferred bidder for another three iron ore mines in auctions held by Karnataka. The estimated resources of these mines stand at around 93 MMT.
• Alkem Laboratories stated that inspection of its manufacturing facility at Baddi has been closed by the U.S. FDA. The company stated that Form 483 contained four observations and it had submitted corrective actions in stipulated time to the FDA.
• Bandhan Bank equity shareholders approved the amalgamation of Gruh Finance with the bank.
• DHFL stated that it completed the sale of its 30.63 percent stake in Avanse Financial Services to Warburg Pincus. The company and all the promoters have completed exited from Avanse from July 30. The company also defaulted on NCDs interest worth Rs 25.06 crore, which was due on July 29.
• KEI Industries has started commercial production of first phase for manufacturing wire at a new plant in Dadra and Nagar Haveli.
• Union Bank reduced MCLR by up to 20 basis points across various tenors with effect from Aug. 1. One-year MCLR at 8.5 percent and one-month MCLR at 8.1 percent.
• Lakshmi Vilas Bank revised MCLR across various tenors with effect from Aug. 1. One-month MCLR at 9.75 percent and one-year MCLR at 9.95 percent.
• Cox & Kings defaulted in payment of commercial papers worth Rs 10 crore which was due on July 29.
• Vadilal Enterprises India Ratings and Research downgraded long term issuer rating to ‘IND BBB+’ from ‘IND A’.
• Maruti Suzuki stated that Ertiga (Petrol) has now become BS-VI compliant with effect from July 30. The company said that all variants of Ertiga (Petrol) will see a price increase. Revised price of the afore mentioned car to vary from Rs 7.54 lakh to Rs 10.05 lakh.
• Tech Mahindra board approved the proposal to acquire majority stake in Mad Pow Media Solutions which is valued at $25.3 million.
• Sobha acquired 100 percent stake in two companies from Kuthavakkam Group. Both these companies have land parcels.
• Mahindra & Mahindra increased stake in Smartshift Logistics to 34 percent for a consideration of Rs 37.5 crore.
• DLF board approved appointment of KP Singh as Non-Executive Chairman of the company.
• Muthoot Capital Services DSP Mutual Fund increased stake in the company by 1.21 percent to 6.19 percent stake.
• Enkei Wheel Board gave approval to borrow Rs 45 crore from parent company.
• Petronet LNG deferred board meeting for quarterly results to Aug. 7.
• Apollo Micro Systems: ICRA downgraded its long term and short term rating to BBB- and A3 from BBB and A3+. The outlook was revised to ‘negative’ from ‘stable’ due to deterioration in working capital cycle owing to an increase in debtor days, high inventory holding, and lower creditors.

Offerings

• Affle India IPO gets 81 percent demand for shares offered on second day sale, offer closes July 31.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.46 percent to 11,046.50 as of 8:05 a.m.

Stocks in Asia dropped as investors mulled pessimistic signs for U.S.-China trade talks alongside a mixed set of corporate earnings ahead of the Federal Reserve’s long-awaited interest-rate cut.

Japanese and Hong Kong shares slid following an overnight decline in the S&P 500 Index. South Korea’s Kospi after its earnings result. S&P 500 futures edged up and Australian and China stocks saw a more modest drop.

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