Sensex, Nifty Snap 3-Day Losing Streak As Metals Extend Rally
India stock benchmarks snapped a three-day losing streak, tracking gains in Asian markets after the U.S. Federal Reserve reassured that its proposed tapering of stimulus will be closely linked to the economic progress.
The S&P BSE Sensex rose 0.4% to 52,653.07. The NSE Nifty 50 Index also advanced by a similar magnitude. Twelve of the 19 sector sub-indexes compiled by BSE Ltd. climbed, led by a gauge of metal companies.
The broader markets too gained along with their larger peers. The S&P BSE Midcap rose 0.4% and the S&P BSE SmallCap climbed 0.90%. The market breadth was skewed in favour of bulls. About 1,947 stocks advanced, 1,243 declined and 147 remained unchanged on the BSE.
The Federal Reserve’s continued soft monetary policy stance and least possibility of any reversal of monthly bond buying augurs well for emerging markets including India, Binod Modi, head of strategy at Reliance Securities, said in a note.
Indian shares declined for the last three sessions as most companies’ June quarter earnings performance has been unimpressive. So far, of the 24 Nifty companies which have reported earnings, 18 have missed the consensus while five managed to beat the analysts’ estimates.
PVR Gains Over 3% On June Quarter
Shares of PVR Limited gained 3.53% to Rs 1,383.00 apiece after reporting better-than-expected revenue in the June quarter.
June Quarter Results
Net loss at Rs 219.44 crore vs net loss of Rs 289.21 crore QoQ
Revenue at Rs 59.39 crore vs estimate of Rs 33.57 crore (Bloomberg consensus)
Total costs at Rs 417.06 crore vs Rs 508.07 crore QoQ
Other income at Rs 33.16 crore vs Rs 81.80 crore QoQ
COMMENTARY AND CONTEXT
Company expects to reopen its screen portfolio on staggered basis starting July 30.
Covid 2nd wave impacted June quarter operations significantly.
Company has restarted talks with landlords/developers to seek waivers/discounts on rent payments.
Company had total liquidity of Rs 850 crore as of June 30.
Expect rental waiver, discount discussions to conclude in 2Q as cinemas are allowed to reopen.
Expects rental waiver discussion to close in September quarter.
Out of 31 analysts tracking the company, 21 maintained ‘buy’, 4 maintained ‘hold’ and 6 analysts maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg hints at an upside of 11.6%
TRAI Data: Airtel Lost Net 4.6 Million Users In May, Jio Added 3.6 Millions Users
India’s net wireless phone subscribers were down by 6.27 million in May as the second largest carrier Bharti Airtel lost 4.6 million customers in the month, according to data released by the Telecom Regulatory Authority of India.
Vodafone Idea lost net 4.28 million subscribers , while state-run BSNL lost 9,30,814 customers
Bharti Airtel had the highest proportion of active customers at 97.99% in May, followed by 88.82% for Vodafone Idea and 78.37% for Reliance Jio
Reliance Jio had a 36.6% market share in wireless subscriber base, while Bharti Airtel had 29.6% and Vodafone Idea 23.6%
LIC Housing Finance Sheds Nearly 4% On June Quarter Miss
Shares of LIC Housing Finance Ltd. shed 3.98% to Rs 415.80 apiece after net profit missed average analyst estimates in the June quarter.
June Quarter Results:
Net income at Rs 153.44 crore vs estimate of Rs 695 crore (Bloomberg consensus)
Revenue at Rs 4,857.11 crore vs Rs 4,967.69 crore QoQ
Total expenses at Rs 4,666.11 crore vs Rs 4,612.37 crore QoQ
Interest income at Rs 4,825.28 crore vs Rs 4,897.80 crore QoQ
Finance cost at Rs 3,549.97 crore vs Rs 3,392.87 crore QoQ
Out of 40 analysts tracking the company, 26 maintained ‘buy’, 6 maintained ‘hold’ and 8 analysts maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 26.6%. Shares of LIC Housing Finance added 16.2% in 2021 so far.
Shoppers Stop Pares Gains After Reporting Q1 Loss
Shoppers Stop Ltd. reported a net loss for first quarter of current financial year.
Net loss at Rs 104.89 crore vs Rs 24.10 crore QoQ
Revenue at Rs 205.23 crore vs Rs 680.45 crore QoQ
Total expenses at Rs 408.95 crore vs Rs 728.94 crore QoQ
Total income at Rs 269.50 crore vs Rs 704.70 crore QoQ
COMMENTARY AND CONTEXT
Company says recovery in sales is encouraging.
Sales driven by higher footfalls, stores were operational for 28% of June quarter.
Net debt at Rs 98 crore
Expect normalcy by Q3FY22; long festive season to aid recovery.
To launch exclusive online apparel brand in the September quarter and 50+ beauty brands in next 3 months.
Company plans to open 30+ stores in the next 24 months.
Out of the 13 analysts tracking the company, 8 maintained ‘buy’, 3 maintained ‘hold’ and 2 analysts maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 9%.
Mid-Market Update: Sensex Up 250 Points, Nifty Metal Hits A New High
India’s stock benchmarks gained amid strong global cues aided by China’s efforts to ease frayed market nerves and U.S. Federal Reserve’s reassurance that it will tighten policy only after ‘substantial further progress’ on the inflation front.
The S&P BSE Sensex gained 0.50% to 52,704.34 and NSE Nifty 50 Index posted gains of similar magnitude to 15,789.25, as on 12:45 PM.
The broader markets mostly kept up pace with their larger peers. The S&P BSE MidCap added 0.3% while the S&P BSE SmallCap advanced 0.9%.
Fifteen of the 19 sectoral indices compiled by the BSE Ltd. rose, led by S&P BSE Metal’s 5% gains while S&P BSE Basic Materials added 2.41%. On the flipside, S&P BSE FMCG declined 0.60%.
The market breadth was skewed in favour of bulls. About 1,970 stocks advanced, 1,115 declined and 135 remained unchanged on the BSE.