Indices gain for 6th day as financials zoom; Sensex ends 354 pts higher

All that happened in the markets today

4:15 PM

MARKET COMMENT | Vinod Nair, Head of Research at Geojit Financial Services

Indian benchmark indices ended the week in gains following mixed global cues. Financials led the gains in today's trade with both Private and Public Sector banks participating. Global markets were trading uncertain following the US Fed reserve’s policy shift to focus on economic growth and less on inflation. However, the indication that the US Fed would continue to let interest rates remain low and expectation of more stimulus to follow boosted the Indian markets. The stimulus and the associated liquidity are important to our markets since that has been one of the drivers for the current stock market run. As per NSDL, FPI net investments into Equity, as a whole, have been around Rs 45,000 crores, which makes it one of the best months for net inflows.

 

WEEK AHEAD

 

The economic data coming out indicates a slow recovery in progress for the Indian economy and as such the GDP data due out next week, is expected to be a non-event, barring any surprise deviation. The market is expected to continue the momentum. Barring, valuation concerns, the positive commentary and earnings upgrades of the results season has boosted the attractiveness of some stocks. There could be a slight consolidation in the markets when profit booking emerges, but it is not likely to be a long-drawn-out correction.

3:43 PM

SECTOR WATCH:: Nifty Bank zooms nearly 1,000 pts

3:42 PM

MARKET AT CLOSE:: Gainers and losers on the S&P BSE Sensex

3:36 PM

CLOSING BELL

The S&P BSE Sensex rallied 354 points or 0.9 per cent to settle at 39,467 while NSE's Nifty ended at 11,648, up 88 points, or 0.76 per cent. 

3:27 PM

MARKET CHECK

3:22 PM

INDEX GAINER:: IndusInd Bank jumps 10%

3:11 PM

BROKERAGE VIEW:: Centrum Broking on Can Fin Homes

Can Fin Homes (Canfin) overall earnings were slightly better than our estimates. AUM growth was 9.7% YoY while NIM at 3.8% was better due to the lower cost of funds. Hence PPoP outperformed led by higher NII. The overall business has reached 65-70% of pre-COVID levels and the company is targeting a loan book of Rs230bn+ in FY21E which could translate to 11%+ YoY loan growth. Provisions remained elevated at Rs441mn and total COVID-19 provisions stand at Rs0.73bn (2.5% of unpaid EMI book). 28% of the loans are under moratorium (SENP:salaried mix is 55:45) while 14% of the book has paid no installments. D/E ratio has further improved QoQ and CET-1 ratio at 20.5% remains strong. See FY21E RoA/RoE of 1.6%/15%. Maintain multiple at 2.2x FY22 ABV with TP of Rs 437. BUY.

3:08 PM

BUZZING STOCK:: Mahindra Logistics jumps 8%

3:00 PM

Heatmap: S&P BSE Sensex gainers and losers at this hour

2:52 PM

June Quarter Result :: SJVN reports standalone PAT of Rs 301 crore vs Rs 420 crore YoY

>> Revenue from operations at Rs 674.89 cr vs Rs 712.49 cr YoY

2:47 PM

BUZZING STOCK:: Ramco Systems hits 5% upper circuit

2:46 PM

When will India finally have access to coronavirus vaccine?

Analysts at Bernstein said that Serum Institute of India (SII) was best positioned to deliver the first vaccine.

 

While indigenous vaccine candidates are few, India scores highly on the global capacity equation. Among SII, Bharat Biotech, Biological E and some smaller players, India produces around 2.3 billion doses of various vaccines every year. SII is the largest manufacturer of vaccines globally, with a capacity of around 1.5 bn doses, to be scaled to 1.95 billion doses by the end of 2020. READ MORE

2:40 PM

Stocks that hit 52-week high on BSE today

COMPANY	PRICE(rs)	52 WK HIGH	CHG(%)
ATUL	6199.00	6441.40	-1.10
COROMANDEL INTER	808.25	830.75	0.80
DIVI'S LAB.	3274.55	3378.65	0.16
DIXON TECHNOLOG.	8335.00	8821.85	-3.23
GMR INFRA.	25.80	28.25	0.39

2:32 PM

ICICI Bank, Axis Bank contribute the most to Sensex's 400-point gain today

2:32 PM

BROKERAGE VIEW :: Goldman Sachs on IT

Investment ideas: TCS upgraded to Buy; HCL Tech upgraded to Neutral

>> While cyclically the momentum remains strong for Tech services going into FY22E, even strengthening, we believe a number of structural tailwinds are emerging including the scaling up of digital projects with the modernization of IT stacks for more robust business continuity planning.

>> With the most efficient supply chains, we believe India IT services companies are positioned favorably to benefit from a third wave of outsourcing after previous waves in 2000 (post Y2K) and in 2008-09 (post GFC).

>> Due to these tailwinds and given our macro team’s further increase in Global/US GDP estimates on a sharper recovery, we increase our FY22E-23E sector revenue and earnings forecasts by up to 7% and now forecast 12.6% USD revenue growth in FY22E (vs. -2.7% in FY21E, and vs. prior 9.7%) for theTop 5 Indian IT firms.

2:22 PM

Firms and lenders provisions for Covid-related losses cross Rs 27,000 cr

Companies have accounted for Rs 27,312 crore in potential coronavirus-related losses on money owed to them. This includes lenders with outstanding loans as companies that are to collect on trade receivables--amounts owed for goods and services that they provided to customers but on which they are yet to receive payment. READ MORE

2:15 PM

BROKERAGE VIEW:: Emkay Global on Firstsource Solutions

RATING: BUY | TARGET PRICE: Rs 90 

We upgrade FSOL to Buy with a revised TP of Rs 90, based on 12x Sep'22E EPS. We believe that the company is at the early stage of a sustainable uplift in financial performance. Accordingly, we assign an 'overweight' stance in sector Emkay Alpha Portfolio (EAP).

2:05 PM

Rupee Closing

Rupee ends higher at 73.39 per US dollar vs Thursday's close of 73.80/$

2:02 PM

Sun Pharma surges 4%, hits 52-week high; stock rallies 76% from March-low

For the quarter ended June 2020, Sun Pharma had reported a surprise loss due to one-time charges. The company’s US business posted a 33.5 per cent decline during the quarter, while India sales were up 3.2 per cent on a year-on-year (YoY) basis. Consolidated sales from operations at Rs 7,467 crore, a decline of about 9.6 per cent over the same quarter last year. READ MORE 

1:49 PM

HCC sinks 16% from day's high on Rs 406 crore consolidated net loss in Q1

The shares had jumped leaped 10 per cent in the morning deals today to hit a high of Rs 7.4 apiece, translating into an intra-day fall of 16.2 per cent. A combined 24.92 million shares had changed hands on the counter on the NSE and BSE till the time of writing of this report. READ MORE

1:39 PM

Expansion, demand triggers to help SRF maintain growth trajectory

After posting strong double-digit growth on the back of expansion over the past few years, SRF is looking at increasing capex to monetise multiple opportunities. The company’s board will meet next week to look at fundraising options to finance new opportunities. The firm has invested over Rs 4,000 crore in the past three years and is expected to invest Rs 2,000 crore over the next two years. READ MORE

1:28 PM

BUZZING STOCK:: Sundaram Finance leaps 10%

1:15 PM

European indices open mixed

1:07 PM

Tesla market valuation hits $420 billion

Elon Musk thanked his hardworking team at Tesla as the electric car makers market cap reached $420 billion which is equal to the next top five carmakers combined together. Tesla even surpassed Johnson & Johnson in terms of market cap. There are only seven companies in the S&P 500 index worth more, including Visa at $447 billion and Apple at $2.16 trillion, reports Barrons.com. About two months ago, the EV maker was at $200 billion. It first hit $100 billion in January. READ MORE

12:52 PM

Want to buy physical gold? Pick a digital platform for your investment

What can you get for a few rupees? Some sugar candies, perhaps. But do you know that you can also buy gold for a few rupees? Amazon Pay recently started allowing users to purchase digital gold on its platform. While existing players like Paytm, MobiKwik, and PhonePe allow you to buy gold for Rs 1, Amazon Pay has kept the minimum amount at Rs 5. Digital gold is essentially an avenue for investing in physical gold. READ MORE

12:39 PM

Nifty Bank gains 3.5%, hits 10-week high; Axis Bank soars 8%, ICICI Bank 5%

Bluechip financial counters such as Axis Bank, ICICI Bank, and State Bank of India lifted the markets on Friday as analysts turn positive on the sector. That apart, August Futures and Options (F&O) series, which ended on August 27, saw strong participation from banking sector underlying optimism in the space READ MORE

12:27 PM

Telecom stocks rally; Vodafone Idea surges 17%, Bharti Airtel up 2%

The S&P BSE Telecom index, up 3.44 per cent, was the top sectoral gainer at 11:30 AM. In comparison, the benchmark S&P BSE Sensex was trading 0.8 per cent higher. Among other individual stocks, Bharti Infratel rose 6.75 per cent to Rs 213.35 while Bharti Airtel gained 2.86 per cent to Rs 525.65. Reliance Industries, meanwhile, was trading 0.9 per cent higher at Rs 2,131. READ MORE 

12:12 PM

BROKERAGE VIEW:: ICICI Securities on Indraprastha Gas

The environmental concerns in Delhi had brought forth the urgency of using cleaner fuels, putting the company in a sweet spot. IGL has a unique identity of a company with a rare mix of volume growth and strong margins. However, there is a risk to its business growth if PNGRB implements open access policy for CGD network and faster adoption of EVs. In the near term, due to Covid-19 initiated lockdown, CNG and industrial/commercial PNG sales dipped in Q1FY21 and have not fully recovered yet. We believe a full recovery in demand will take time. We maintain HOLD recommendation on the stock and value standalone IGL at |Rs 378/share (21x FY22E EPS) and investment in Central UP Gas (CUGL) and Maharashtra Natural Gas (MNGL) at Rs 32/share to arrive at a target price of Rs 410.

11:54 AM

BROKERAGE VIEW:: Emkay Global on Jindal Stainless

RATING : HOLD | TARGET PRICE: Rs 52

• JSL announced the issuance of equity convertible warrants to tide over working capital shortfall as it is under moratorium and does not expect banks to extend the additional loan in the near term. The company needs cash immediately as it ramps up plant utilisation.
• The warrants are priced at Rs 42.55/share, a discount of 16.8% to yesterday's closing price. The warrants will be subscribed to by the promoters (89%) and Kotak Special Situations Fund (11%). 33% of the issue is payable upfront and balance will be due in 18 months.
• The equity infusion by promoters is generally a sign of confidence in the company, but the pricing has caught us by surprise. The discount to the CMP should cap near-term upside. The QIP results in 7.9% EPS dilution; promoters' stake will rise from 68.12% to 69.87%.
• We are constructive on SS demand in India due to increasing urbanization and government support to the domestic industry. We increase our target multiple from 4x to 4.5x Mar-22E and raise our TP from Rs 42 to Rs 52. But at the CMP, the near-term upside looks capped. Downgrade to Hold. Key risk is a slide in SS prices. 

11:51 AM

Stocks that hit 52-week high on BSE today

COMPANY	PRICE(rs)	52 WK HIGH	CHG(%)
ATUL	6246.05	6441.40	-0.34
COROMANDEL INTER	813.95	830.75	1.52
DIVI'S LAB.	3282.85	3378.65	0.41
DIXON TECHNOLOG.	8452.05	8821.85	-1.88
GMR INFRA.	26.00	28.25	1.17