RBI’s Unprecedented Rate Cut Fails To Lift Sensex, Nifty
Catch all the live updates on share prices, index moves, corporate announcements and more from Sensex and Nifty today.
KEY HIGHLIGHTS
Closing Bell: Sensex, Nifty Resume Declines After RBI's Fourth Rate Cut This Year
Indian equity benchmarks ended lower after the Reserve Bank of India reduced growth forecast for the year even as it cut benchmark rate by an unprecedented 35 basis points.
The S&P BSE Sensex ended 0.77 percent lower at 36,690.50 and the NSE Nifty 50 fell 0.85 percent to 10,855.50. The broader market index represented by NSE Nifty 500 Index ended 0.72 percent lower.
Also, RBI trimming its growth projection below 7 percent for financial year ending 2020 may not “go down well” with the markets in the near term. That’s according to Rajiv Singh, chief executive officer at Karvy Stock Broking, in an emailed statement.
There could be further downside risk from a 6.9 percent growth projection in the coming quarters, said Shubhada Rao, group president & chief economist, Yes Bank, in an interview to BloombergQuint.
Particularly, we believe that the last quarter growth forecast (fourth quarter of FY20) is not likely to be met.Shubhada Rao, Group President & Chief Economist, Yes Bank
Nifty Index offers a buying opportunity at current level of 10,850, according to Ruchit Jain, technical analyst at Angel Broking told BloombergQuint. “One should expect the index to advance towards 11,000. Once that mark is breached post tomorrow’s weekly expiry, then expect a rally towards 11,120-levels,” The stop-loss should be placed at Monday’s low of 10,780, he said.
The market breadth was tilted in favour of sellers. About 945 stocks fell and 819 shares advanced on the National Stock Exchange.
Eight out of 11 sectoral gauges compiled by NSE fell, led by the NSE Nifty PSU Bank Index’s 3.36 percent decline. On the flipside, the NSE Nifty Media Index was the top sectoral gainer, up 1.89 percent.
Cipla Gains After Q1 Results
Shares of the drugmaker jumped over 5 percent to Rs 525.85 each. The company announced its results for the April-June period today.
Key Highlights (YoY)
- Revenue rose 1.3 percent to Rs 3989 crore.
- Net profit rose 6 percent to Rs 478.2 crore.
- Ebitda rose 24.5 percent to Rs 904.6 crore.
- Operating margin at 22.6 percent versus 18.4 percent.
The stock traded 15 percent below the Bloomberg consensus one-year target price.
Adani Ports Declines After Q1 Results
Shares of the Gautam Adani-led group company fell as much as 3 percent to 365.65 apiece. The company reported its first quarter results today.
Key Highlights (YoY)
- Revenue up 15.9 percent to Rs 2,794 crore
- Net profit jumped 48 percent to Rs 1,022 crore.
- Ebitda up 16 percent to Rs 1,843 crore.
- Operating margin at 65.95 percent versus 65.88 percent.
Twenty one out of 24 analysts tracked by Bloomberg had a ‘Buy’ recommendation on the stock, while two analysts recommended ‘Hold’. One analyst recommended ‘Sell’.
Indiabulls Housing Slumps To Over Four-Year Low
Shares of the non-banking lender declined close to 13 percent to Rs 447.40 apiece, its lowest price since December 2014.
Key Earnings Highlights (Q1, YoY)
- Net revenue fell 12 percent to Rs 1,522 crore. (estimate Rs 1,544 crore)
- Net interest income fell 12.7 percent to Rs 1,475 crore.
- Net Income fell 24 percent to Rs 801 crore. (estimate Rs 998 crore)
- Gross NPAs at 1.47 percent versus 0.88 percent (QoQ)
- Net NPAs at 1.1 percent versus 0.69 percent (QoQ)
The stock has fallen 65 percent in the past 12 months compared to a 2 percent fall in the Sensex.
Lupin Gains After Q1 Results
Shares of the drugmaker snapped its two-day fall and rose nearly 3.3 percent to Rs 775 each. The company announced its June quarter results today.
Key Highlights (YoY):
- Revenue up 14 percent to Rs 4,418 crore
- Net profit jumped 49 percent to Rs 303 crore.
- Ebitda up 63 percent to Rs 860 crore.
- Operating margin at 19.5 percent versus 13.7 percent.
Trading in the company's call options totaled 2,604 contracts, compared with the average of 1,462 over the past 20 days. Trading in the company's put options totaled 1,609 contracts, compared with the average of 522 over the same period.
Market Check: Sensex, Nifty Decline; Auto Stocks Drag
Indian equity benchmarks declined sharply in afternoon trade driven by losses in Indiabulls Housing and automakers.
The S&P BSE Sensex declined 0.34 percent to 36,860.45 and while the the NSE Nifty 50 traded 0.40 percent lower at 10,905.15 as of 1:50 pm. The broader market represented by the NSE Nifty 500 Index declined 0.22 percent.
Six of the 11 sectoral gauges compiled by National Stock Exchange fell, led by 1.83 percent decline in Nifty PSU Bank Index. On the flipside, Nifty Media Index was the top gainer, up 2.89 percent.
India Cements Jumps 7%
Shares of the Chennai-based cement maker rose 7.1 percent, its biggest intraday gain in over a month, to Rs 91.50 each.
Key Highlights (YoY)
- Revenue up 7.9 percent at Rs 1,468.8 crore.
- Net profit jumps over 3 times to Rs 72.2 crore.
- Ebitda up 55 percent to Rs 241.9 crore.
- Margin at 16.5 percent versus 11.5 percent.
The trading volume was almost three times the 20-day average for this time of the day, according to Bloomberg data.
Further Downside Risks Exists For FY20 Growth, Says Yes Bank's Rao
There could be further downside risk from a 6.9 percent growth projection in the coming quarters. That’s according to Shubhada Rao, Group President & Chief Economist, Yes Bank.
Particularly, we believe that the last quarter growth forecast (fourth quarter of FY20) is not likely to be met.Shubhada Rao, Group President & Chief Economist, Yes Bank.
M&M Falls After Q1 Results
Shares of the automaker fell 2.8 percent intraday to Rs 534.25 each.
Key Highlights (YoY)
- Revenue down 4 percent to Rs 12,997 crore.
- Net profit down 26 percent to Rs 918 crore.
- Calculated Ebitda at Rs 1,819.6 crore versus Rs 2141 crore.
- Operating margin at 14 percent versus 15.8 percent.
- Exceptional gain of Rs 1367.05 cr on gain on sale of shares M&M benefit trust and buyback gains on transfer of certain long term investments.
The relative strength index on the stock was below 30, indicating it may be oversold.
Lower Growth Forecast May Have Short-Term Impact On Markets, Says Karvy Stock Broking
The RBI trimming its growth projection below 7 percent for financial year ending 2020 may not “go down well” with the markets in the near term. That’s according to Rajiv Singh, chief executive officer at Karvy Stock Broking.
“Overall, this is a good policy and should help improve liquidity, consumption and demand scenario in the economy albeit with a lag.” said Singh in an emailed statement. “Based on the current inflation projections, there is further room for RBI to cut rates and boost the economy. ”
Bharti Airtel Fluctuates After Block Deal
Shares of Sunil Mittal-led telecom company reversed day’s losses and traded flat at Rs 369.30 as of 12:30 pm.
Around 10 lakh shares changed hands in a block deal, according to Bloomberg data. Buyers and sellers were not known immediately.
Of the shares that were traded, 41 percent were at the ask price while 31 percent were at the bid, according to Bloomberg data.
RBI Governor Admits Cyclical Slowdown Impacting Economy
Investment and demand slowdown having a “dampening effect” on growth, said RBI Governor Das in press conference following the monetary policy meet.
- Whether it is structural, cyclical, or momentary, needs deeper analysis.
- Our analysis is that it is a cyclical slowdown, not really a deep structural slowdown.
- There's room for certain structural reforms that need to be undertaken.
At this point, it appears that the Indian economy is going through a cyclical slowdown,Shaktikanta Das, RBI Governor
Monetary Policy: RBI Governor Shaktikanta Das On Economy, Liquidity, Transmission And Credit Flow
Dynamics Of The Macro Situation Led To An Unprecedented 35 BPS Cut
RBI governor Das said reducing the policy repo rate by 35 basis point rate was viewed as "balanced level of cut under the circumstances.”
RBI Announces Of Measures To Improve Credit Flow
Monetary Policy Highlights
- RBI cuts risk weight for consumer credit from 125 percent to 100 percent, except for credit card receivables.
- Exposure limit for single non-banking finance companies raised to 20 percent from 15 percent.
- Bank lending to NBFCs for agriculture & SME loans eligible for priority sector classification
RBI Cuts FY20 GDP Forecast
India’s central bank cut GDP growth forecast for the current fiscal to 6.9 percent from 7.2 percent earlier.
“Addressing growth concerns assumes the ‘highest priority’ at this juncture, while maintaining an ‘accommodative’ monetary policy stance, the Monetary Policy Committee said. Also, RBI forecasts inflation for 2019-20 at 3.5-3.7 percent.
Even as past rate cuts are being gradually transmitted to the real economy, the benign inflation outlook provides headroom for policy action to close the negative output gap. Addressing growth concerns by boosting aggregate demand, especially private investment, assumes the highest priority at this juncture while remaining consistent with the inflation mandate.MPC Statement
Nifty Bank Gains After RBI Cuts Repo Rate
The NSE Nifty Bank Index rose as much as 153 points or 0.55 percent to 28,175 after the country’s central bank opted for an unprecedented 35-basis-point rate cut.
The gains in the 12-share gauge were led by Yes, Bank Ltd., IndusInd Bank Ltd. and IDFC First Bank Ltd.
Money Market Update: Rupee Weakens, 10-Year Yield Falls
The Indian rupee traded lower against the U.S. dollar. The home currency depreciated 0.15 percent to 70.93 against the greenback. In the bond markets, the yield on the 10-year benchmark fell 2 basis points to 6.3 percent. It fell 6 basis points intraday.
Market Check: Sensex, Nifty Volatile After RBI Cuts Repo Rate By 35 Basis Points
Indian equity benchmarks fluctuated between gains and losses as Reserve Bank of India cut repo rate by 35 basis points.
The S&P BSE Sensex traded little changed at 36,942 and while the the NSE Nifty 50 traded 0.20 percent lower at 10,919.15 as of 12 pm. The broader market represented by the NSE Nifty 500 Index declined 0.16 percent.
RBI Cuts Benchmark Rate By 35 Basis Points
- Monetary Policy Committee cuts repo rate by 35 basis points to 5.4 percent.
- 36 of 40 economists polled by Bloomberg expected a 25 basis point cut.
- All members of the MPC unanimously voted to reduce the policy repo rate and to maintain the accommodative stance of monetary policy.
- 4 MPC members - Ravindra Dholakia, Michael Patra, BP Kanungo and Shaktikanta Das, voted to reduce the policy repo rate by 35 basis points.
- 2 members - Chetan Ghate & Pami Dua voted to reduce the policy repo rate by 25 basis points.
Vodafone Idea Slumps After Crisil Downgrade
Shares of the telecom operator fell for the fifth straight day after it slumped 9.7 percent intraday to Rs 5.10 each.
Creidt rating agency Crisil downgraded non-convertible debentures worth Rs 3,500 crore to ‘CRISIL A’ from ‘CRISIL A+’, with outlook remaining negative, according to an exchange notification.
The relative strength index was below 30, indicating the stock may be oversold.
Sensex, Nifty Trade Little Changed Ahead Of RBI Meet
Indian equity benchmarks traded little changed ahead of Reserve Bank of India’s policy meet scheduled later today.
The S&P BSE Sensex traded little changed at 36,985 and while the the NSE Nifty 50 traded 0.13 percent lower at 10,937.10 as of 11 am. The broader market represented by the NSE Nifty 500 Index rose 0.1 percent.
Seven of the 11 sectoral gauges copied by National Stock Exchange advanced, led by 2.62 percent gain in Nifty Media Index. On the flipside, Nifty metal Index was the top loser, down 0.78 percent.
Be Choosy As It's A Risky Time To Invest, Says Quantum Securities' Dutt
Investors need to be selective while picking stocks as the current macro environment is risky. That’s according to Sanjay Dutt, Director, Quantum Securities.
“Start looking at quality, mid-caps and large-caps that are available at throwaway prices and stay put for 12-24 months for good gains” said Dutt in an interview with BloombergQuint.
Jammu & Kashmir Bank Locked In Upper Circuit
Shares of the lender was locked in the upper circuit after it advanced 20 percent to Rs 45 each.
The stock has gained 31.9 percent in the past two trading sessions. The annual general meeting is scheduled on Aug.10.
“ I do see significant changes happening over a period of time (at the bank) with what is happening on the political front.,” said Abhimanyu Sofat, Vice President, Research at IIFL Securities. However, it is suitable for investors who have appetite for high risks, he said.
Indiabulls Housing Finance Worst Performer On Nifty
Shares of Indiabulls Housing Finance fell as much as 8.6 percent to Rs 470.10 after the company announced its quarterly results for the three months ended June.
Key Earnings Highlights (Q1, YoY)
- Net revenue fell 12 percent to Rs 1,522 crore. (estimate Rs 1,544 crore)
- Net interest income fell 12.7 percent to Rs 1,475 crore.
- Net Income fell 24 percent to Rs 801 crore. (estimate Rs 998 crore)
- Gross NPAs at 1.47 percent versus 0.88 percent (QoQ)
- Net NPAs at 1.1 percent versus 0.69 percent (QoQ)
The stock has fallen 65 percent in the past 12 months compared to a 2 percent fall in the Sensex.
Avenue Supermarts Falls After Promoter Plans To Cut Stake
Shares of the DMart supermarket chain fell 4.7 percent, its biggest intraday decline in a month, to 1,421.05 each.
Promoter Radhakishan Damani will divest up to 1 percent stake, or 62.3 lakh shares of the company, according to an exchange filing. Sale of shares to start from Aug. 8 and end on Sept. 14. Sale has been undertaken in the open market to comply with minimum public share-holding guidelines. After this, the promoter stake to come down from 81.2 percent to 80.2 percent.
The stock traded at 77 times its estimated earnings per share for the coming year, according to Bloomberg data.
IRB Infra Jumps On Stake Sale Plans, Q1 Results
Shares of Mumbai-based company extended gains for the second consecutive trading session and rose as much as 10.6 percent to Rs 105.80.
The construction firm said it will sell stake in its road business to the Government of Singapore for Rs 4,400 crore, according its stock exchange filing. The company will transfer nine of its build–operate–transfer assets into a private Infrastructure Investment Trust in, which IRB will hold a 51 percent controlling stake.
Besides, the company announced its June quarter results.
Key Earnings Highlights (Q1, YoY)
- Revenue rose 15.3 percent to Rs 1,773 crore. (estimate Rs 1,844 crore)
- Net profit fell 17.4 percent to Rs 206.6 crore. (estimate Rs 211 crore)
- Ebitda rose 14.6 percent to Rs 855.3 crore. (estimate Rs 768 crore)
- Margin at 48.2 percent versus 48.5 percent.
- Finance cost jumped 46 percent to Rs 362.2 crore.
The trading volume was more than 50 times its 20-day average for this time of the day, Bloomberg data showed.
Opening Bell: Sensex, Nifty Swing In Open
Indian equity benchmarks fluctuated in opening trade ahead of Reserve Bank of India’s policy meet scheduled later today.
The S&P BSE Sensex traded little changed at 37,010 and while the the NSE Nifty 50 traded flat at 10,953 respectively. The broader market represented by the NSE Nifty 500 Index rose 0.1 percent.
The market breadth was tilted in favour of buyers. About 880 shares advanced and 553 stocks decline on National Stock Exchange.
Your Complete F&O Trade Setup
August Futures
- Nifty futures closed at 10,978.6, premium of 30 points versus 34 points
- Nifty futures open interest down 6 percent, sheds 11 lakh shares in open interest
- Bank Nifty futures closed at 28,109.7, premium of 87 points versus 147.7 points
- Bank Nifty futures open interest down 7 percent, sheds 1.4 lakh shares in open interest
Options
- Nifty PCR at 1.11 versus 1.01 (across all series).
Nifty Weekly Expiry Aug. 8
- Max open interest on call side at 11,200 (26.7 lakh shares).
- Max open interest on put side at 10,800 (17.4 lakh shares).
- Max open interest addition seen in 10,700P (+5.3 lakh shares), 10,900P (+5.2 lakh shares).
- open interest shedding seen in 10,900C (-7.2 lakh shares), 10,800C (-3 lakhs hares).
Nifty Monthly Expiry Aug 29
- Max open interest on call side at 11,000 (22.2 lakh shares).
- Max open interest on put side at 11,000 (30 lakh shares).
Policy Day Guide
- India’s Monetary Policy Committee is set to cut interest rates for a fourth consecutive time on Wednesday.
- Thirty six economists polled by Bloomberg expect the MPC to cut the repo rate by 25 basis points to 5.50 percent—the lowest in nearly a decade.
- The 100 basis points in rate cuts announced this year also marks the steepest reduction in interest rates in recent years, with the exception of the period following the global financial crisis. In June, the MPC cut rates by 25 basis points to 5.75 percent.
Read to get up to speed:
- Why there’s room for another rate cut.
- Anatomy of a growth slowdown and policy implications.
- Finance Minister seeks ‘significant’ rate cuts from RBI.
Catch all the news on monetary policy here.
Money Market Update: Rupee Opens Lower
The Indian rupee depreciated against the U.S. dollar. The home currency weakened 0.2 percent to 70.98 against the greenback.
The currency ended at 70.8250 on Tuesday, and with China having fixed a lower than expected yuan level near 7 a dollar, there are chances that the rupee might come under more pressure.
The government bond traders will await the central bank’s rate decision later on Wednesday, with growing market expectations for a bigger-than-expected cut in interest rates and a guidance on further easing.
Trading Tweaks: Care Ratings, Coffee Day, GFL
- GFL record-date for demerger
- Jagran Prakashan to move into short term ASM Framework
- Simplex Infrastructures, Tejas Networks to move out of short term ASM Framework
Price Band revision (5%)
- 5Paisa Capital
- 8K Miles Software Services
- Adlabs Entertainment
- Aban Offshore
- Andhra Cements
- Ashapura Minechem
- Binani Industries
- Camlin Fine Sciences
- Cox & Kings Financial Service
- Coffee Day Enterprises
- Cox & Kings
- D B Realty
- Eveready Industries
- Excel Realty N Infra
- GFL
- Gujarat NRE Coke
- Indiabulls Integrated Services
- Igarashi Motors India
- IL&FS Engineering and Construction Company
- IL&FS Transportation Networks
- Jet Airways
- Jain Irrigation Systems
- Kalyani Forge
- Kridhan Infra
- Kwality
- Lakshmi Vilas Bank
- Manpasand Beverages
- Mcleod Russel
- Mercator
- MT Educare
- Reliance Communications
- Religare Enterprises
- Reliance Naval and Engineering
- Som Distilleries & Breweries
- Sical Logistics
- Talwalkars Better Value Fitness
- Talwalkars Healthclubs
- Tanla Solutions
- Themis Medicare
- Tata Teleservices (Maharashtra)
- Eros International Media
Price Band revision (10%)
- 63 Moons Technologies
- Alphageo
- Avadh Sugar & Energy
- CARE Ratings
- Gammon Infrastructure Projects
- GATI
- GTPL Hathway
- Hubtown
- IL&FS Investment Managers
- Jubilant Industries
- Linc Pen & Plastics
- Mangalam Drugs And Organics
- Nagarjuna Oil Refinery
- NRB Industrial Bearings
- Reliance Home Finance
- Tejas Networks
- Tourism Finance Corporation of India
- Williamson Magor & Company
- Unitech
- Patel Engineering
Offerings: Sterling & Wilson, Spandana Sphoorty
- Spandana Sphoorty Financial IPO gets 30 percent demand on second day sale; offer to close on Aug. 7.
- Sterling & Wilson Solar IPO gets 9 percent demand on first day sale; offer to close on Aug. 8.
Q1 Earnings Corner: HCL Tech, Indiabulls Housing, Mahindra & Mahindra, Zensar Tech
Nifty Earnings To Watch
- Adani Ports & SEZ
- Cipla
- HCL Technologies
- Mahindra & Mahindra
- Tata Steel
Other Earnings To Watch
- Hindustan Petroleum Corporation
- Lupin
- Aurobindo Pharma
- Adani Gas
- Adani Green Energy
- Adani Power
- Phoenix Mills
- Allcargo Logistics
- Aster DM Healthcare
- AstraZeneca Pharma
- Lemon Tree Hotels
- Bajaj Electricals
- Siemens
- Balrampur Chini Mills
- Voltas
- Birlasoft
- Cummins
- Matrimony.com
- Navkar Corporation
- Oracle Financial Services Software
- Petronet LNG
- Dollar Industries
- GOCL Corporation
- Gravita India
- Goodricke Group
- Honda Siel Power Products
- India Cements
- J.Kumar Infraprojects
- KEC International
- Maharashtra Seamless
- Signet Industries
- Precision Wires
- Punjab & Sind Bank
- Ramco Industries
- Ramco Cements
- Ramco Systems
- Sonata Software
- Sudarshan Chemical Industries
- Sundram Fasteners
- Tata Teleservices (Maharashtra)
- Themis Medicare
- Welspun Corp
Earnings Reaction To Watch
Indiabulls Housing Finance (Q1, YoY)
- Net revenue fell 12 percent to Rs 1,522 crore. (estimate Rs 1,544 crore)
- Net interest income fell 12.7 percent to Rs 1,475 crore.
- Net Income fell 24 percent to Rs 801 crore. (estimate Rs 998 crore)
- Gross NPAs at 1.47 percent versus 0.88 percent (QoQ)
- Net NPAs at 1.1 percent versus 0.69 percent (QoQ)
IRB Infra Developers (Q1, YoY)
- Revenue rose 15.3 percent to Rs 1,773 crore. (estimate Rs 1,844 crore)
- Net profit fell 17.4 percent to Rs 206.6 crore. (estimate Rs 211 crore)
- Ebitda rose 14.6 percent to Rs 855.3 crore. (estimate Rs 768 crore)
- Margin at 48.2 percent versus 48.5 percent.
- Finance cost jumped 46 percent to Rs 362.2 crore.
Novelis (Q1, YoY) (Hindalco’s Arm)
- Net sale fell 5.6 percent to $2,925 million.
- Net Income fell 7.3 percent to $127 million.
- Net income (adjusted) rose 26.1 percent to $145 million.
- Adjusted Ebidta rose 11.4 percent to $372 million.
Zensar Tech (Q1, QoQ)
- EBIT was down due to higher other income in base quarter.
- Revenue rose 1.3 percent to Rs 1,071 crore. (estimate Rs 1,074.3 crore)
- Net profit fell 9.9 percent to Rs 74.5 crore. (estimate Rs 82.1 crore)
- EBIT fell 2.7 percent to Rs 91.2 crore. (estimate Rs 101 crore)
- Margin at 8.5 percent versus 8.9 percent.
- Other income slumped 42 percent to Rs 14.6 crore.
Lakshmi Vilas Bank (Q1, YoY)
- Net interest income fell 5.1 percent to Rs 123.6 crore.
- Net loss stood at Rs 237.3 crore versus Net loss of Rs 123.9 crore.
- Provisions were at Rs 211.7 crore versus Rs 161.5 crore. (Rs 478.8 crore QoQ)
- GNPA at 17.3 percent versus 15.3 percent (QoQ)
- NNPA at 8.3 percent versus 8.49 percent (QoQ)
JK Lakshmi Cement (Q1, YoY)
- Revenue rose 12.8 percent at Rs 1,041.9 crore. (estimate Rs 976 crore)
- Net profit was up 2.9 times at Rs 39.4 crore. (estimate Rs 65 crore)
- Ebitda jumped 81 percent to Rs 169.8 crore. (estimate Rs 164 crore)
- Margin at 16.3 percent versus 10.2 percent. (estimate 16.8 percent)
- Transportation and forwarding expenses down 13 percent at Rs 213 crore.
- Exceptional loss of Rs 30 crore.
Nilkamal (Q1, YoY)
- Revenue fell 8.3 percent to Rs 536.5 crore.
- Net profit fell 7.7 percent to Rs 31 crore.
- Ebitda rose 24.4 percent to Rs 70.8 crore.
- Margin at 13.2 percent from 9.7 percent.
- Tax as percent of PBT was at 34 percent versus 24 percent.
- Depreciation jumped 66 percent to Rs 21.2 crore.
- Finance cost surged 84 percent to Rs 5.9 crore.
Metropolis Healthcare (Q1, YoY)
- Revenue increased 15.6 percent to Rs 203.3 crore.
- Net profit rose 11.7 percent to Rs 26.8 crore.
- Ebitda rose 24.1 percent to Rs 55.1 crore.
- Margins stood at 27.1 percent versus 25.2 percent.
- Exceptional loss of Rs 6.9 crore in the current quarter due provision for impairment in investment of securities in IL&FS and certain old reconciled balances.
Stocks To Watch: IRB Infra, Reliance Industries, Tata Steel
- IRB Infra Developers said it will sell stake in its road business to the Government of Singapore for Rs 4,400 crore. The company will transfer nine of its build–operate–transfer assets into a private Infrastructure Investment Trust in, which IRB will hold a 51 percent controlling stake.
- Reliance and BP said it will form a new joint venture that will include a retail service station network and aviation fuels business across India. Fuel retailing outlets to increase to 5,500 outlets. Castrol’s lubricants will available across this venture’s network.
- Tata Steel terminated the agreement to sell its equity stake in its Thailand arm, as HBIS Group could not procure approvals from the country’s government. Company will begin engagement with other investors in continuation of its strategy to find a partner for the South-East Asian business.
- Avenue Supermarts: Promoter Radhakishan Damani will divest up to 1 percent stake, or 62.3 lakh shares of the company. Sale of shares to start from Aug. 8 and end on Sept. 14. Sale has been undertaken in the open market to comply with minimum public share-holding guidelines. After this, the promoter stake to come down from 81.2 percent to 80.2 percent.
- Hindalco: Novelis expected to complete the $2.6-billion acquisition of Aleris in the quarter ending December against its earlier target of three months ending September.
- DHFL defaulted on payment of three non-convertible debentures principal and interest aggregating to Rs 43.3 crore, which were due on Aug. 6.
- NLC India: Board has decided not to pursue the setting up of pilot plant for its Coldry-Matmor integrated project on research and development collaborative mode as agreed between company, NMDC and ECT Australia. The MoU was signed on May 30, 2018.
- Jet Airways Second meeting of creditors have passed all resolutions including the resolution for the approval of Evaluation Matrix and Request for Resolution Plan was passed by the committee with requisite majority.
- REC: Board approved sale of four special purpose vehicles. Out of these, two transmission projects will be sold to Power Grid Corporation and Sterlite Grid and Adani Power will receive one project each.
- Karur Vyasa Bank revised its MCLR across various tenors with effect from Aug. 1. one-month MCLR at 8.45 percent and one-year MCLR at 9.55 percent.
- Vodafone Idea: CRISIL downgraded NCDs worth Rs 3,500 crore to ‘CRISIL A’ from ‘CRISIL A+’, with outlook remaining negative.
- Cox & Kings defaulted on payment of commercial papers worth Rs 5 crore, which were due on Aug. 6.
- AIA Engineering: Claims of Magotteaux (patent infringement and damages) against the company and Bhadresh K Shah has been dismissed as Tribunal passed an award deciding that it does not have jurisdiction to hear the dispute.
- Hubtown clarified that the income tax department has initiated proceedings of search and seizure against the company and officials on July 30.
- Sagar Cement July sales were up 25 percent to 274,822 MT versus 218,748 MT.
- Alphageo stated the company has not received any further statements from the IT department on the search conducted by the two independent directors have also resigned.
Tokyo-based Mitsubishi UFJ Financial Group acquired minority stakes in multiple Indian companies including Tata Global Beverages, Dr Reddy’s, Marico and Godrej Consumer. This follows MUFG’s acquisition of global investment entities such as UK-based First State Investments, which held shares in the Indian companies.
Here’s A Quick Look At All That Could Influence Equities Today
- Assets in India, New Zealand and Thailand will be in focus with monetary policy decisions due in all three countries on Wednesday.
- Brent crude slipped further after closing in a bear market, down 21 percent from April’s peak.
- Gold futures rallied above $1,500 an ounce on sustained demand for the traditional haven as the U.S.-China trade war festers, global growth slows and central banks around the world ease monetary policy.
- American traders remain on tenterhooks after Monday’s moves, which included the biggest one-day plunge in global equities since February 2018.
SGX Nifty Falls; Asian Equities Trade Mixed
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.36 percent to 10,922.50 as of 8 a.m.
Stocks in Asia opened mixed despite U.S. shares clawing back some of Monday’s rout, with traders remaining cautious in the face of deepening trade tensions. Japanese shares saw modest declines, while Korean equities edged higher.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.