Sensex rises for 4th day, ends 225 pts higher; financial, metal stocks gain

All that happened in the markets today

4:06 PM

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

"Indian markets continued their positive run, in spite of intraday volatility and unabated virus infections across the country. It was in sync with positive global cues, on the back of expected stimulus measures from the US, improving economic data points from China, and the first coronavirus vaccine getting registered in Russia. Indian markets continued their run on the basis of earnings results and stock-specific news, amidst hopes of another round of stimulus measures by the government. This expectation should ensure liquidity in the markets in the near term."

3:44 PM

SECTOR WATCH:: Nifty Metal index rallies 1.66%

3:42 PM

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

3:35 PM

CLOSING BELL

The S&P BSE Sensex rallied 225 points or 0.59 per cent to end at 38,407 while NSE's Nifty settled at 11,322.50, up 52 points or 0.46 per cent. 

3:22 PM

BUZZING STOCK:: Emami continues to soar; advances 9% in today's session

3:17 PM

BROKERAGE VIEW:: ICICI Securities on Titan Company

Titan continues to have a comfortable liquidity position due to adequate banking limits and the ability to issue commercial paper at attractive rates. As on June 30, the company is net cash surplus largely owing to the sale of excess inventory in the form of gold. Titan remains a quality franchise with strong brand patronage. Over the years, the company has consistently exhibited its ability to gain market share amid a tough industry scenario (gained market share in June & July). The robust balance sheet and asset-light distribution model have enabled Titan to outperform peers. While near term headwinds may hamper the performance of the company, we continue to remain structurally positive on the company and its long term growth prospects. We maintain HOLD with a revised target price of Rs 1,170 (52.0x FY22E EPS, previous target price: Rs 1,095).

3:07 PM

MARKET CHECK

2:50 PM

Nifty Pharma index trades lower in an otherwise firm market

2:49 PM

BROKERAGE VIEW:: Centrum Broking on DCB Bank

RATING: BUY | TARGET PRICE: Rs 131

DCB Bank’s earnings were mixed; with NII missing estimates led by weak loan growth and softer NIM (due to excess liquidity) while treasury gains and lower opex (which offset fee income decline) led to a PPoP beat of 10% to Rs1.9bn. Provisions were slightly higher with COVID-19 related being Rs0.32bn. Overall additional provisions (COVID-19 + standard asset + floating) are ~4% of the moratorium which reduced to 26% of loans as of July’20 (vs 60% in Apr’20). Collection efficiency in LAP/HL/CV is improving (over Apr-Jul’20 ~9% higher). The resolution scheme announced may not be utilised for DCB customers except in the case of corporate consortium loans. Tier-1 is healthy at ~14%. See RoA/RoE improve over FY21-22E by 32bps/3.5% to 1.1%/12.5%. Maintain multiple at 1.2x FY22ABV and TP at Rs 131. BUY

2:39 PM

RIL, HDFC twins contribute the most to Sensex's gain today

2:32 PM

MARKET UPDATE:: India VIX drops over 4.5% to 21.48 levels

2:24 PM

NEWS ALERT :: Russia has developed 'first' coronavirus vaccine: Putin

(As reported by AFP)

2:17 PM

MARKET CHECK:: BSE Energy index gains over 1.5%

2:09 PM

Rupee Closing

Rupee ends higher at 74.77 per US dollar vs Monday's close of 74.89/$

2:01 PM

SECTOR WATCH:: Telecom stocks decline in an otherwise firm market

COMPANY	LATEST(rs)	CHG(%)
VODAFONE IDEA	8.74	-3.85
BHARTI AIRTEL	555.00	-0.60
TATA COMM	848.00	-0.59

1:48 PM

BROKERAGE VIEW:: ICICI Securities on Lemon Tree Hotels

The outlook would remain challenging with recoveries not expected before FY22E. LTH’s management expects the ongoing crisis to lead to 15-20% of room inventory getting wiped out, auguring well for the company in the long run. However, near term challenges w.r.t. weak industry dynamics, high D/E, and expected equity dilution compel us to maintain HOLD rating with revised target price Rs 26/share (SOTP based valuation).

1:37 PM

BUZZING STOCK:: Shalby gains over 8%

1:26 PM

European indices start strong

1:20 PM

Axis Bank raises Rs 10,000 cr via allotment of equity shares to QIBs

Private sector lender Axis Bank on Tuesday said it has raised Rs 10,000 crore through allotment of equity shares to qualified institutional buyers (QIB). Last week, Axis Bank had set a floor price of Rs 442.19 per equity share for its proposed Rs 15,000-crore qualified institutional placement (QIP). READ MORE 

1:14 PM

MARKET UPDATE:: Sensex regains momentum

1:08 PM

ALERT :: Dow Jones Futures climb 170 pts

12:57 PM

Opinion | Why is everyone buying gold?

It’s tempting to attribute the vogue for gold to a desire for a safe haven during the pandemic — a kind of financial panic reflex that will release as the crisis abates. But the gold mania is also driven by a hunch that the easy money pouring out of central banks and government stimulus programmes could trigger inflation, which makes it a more worrisome economic omen. READ MORE 

12:50 PM

Import curbs on 101 defence items open big avenue for L&T, Bharat Forge

The government’s policy announcement on the defence sector putting curbs on imports, providing clarity on timelines, and strengthening its “Make in India” initiative bode well for all domestic defence sector suppliers. Government-owned defence undertakings, such as Bharat Electronics (BEL), Hindustan Aeronautics (HAL), Bharat Dynamics, and Cochin Shipyards have already been in the spotlight against the India-China stand-off. READ MORE

12:47 PM

JSW Steel production rises 9% in July at 1.2 million tonnes

The production of long rolled products increased by 46 per cent to 2.4 lakh tonnes in July from 1.65 lakh tonnes in June while the production of flat-rolled products totalled 9.4 lakh tonnes, up 17 per cent from 8.04 lakh tonnes. In July last year, the production of flat-rolled products was 9.08 lakh tonnes and the production of long rolled products was 3.16 lakh tonnes. READ MORE
 

12:35 PM

Top gainers on BSE at this hour

COMPANY	PRICE(rs)	CHG(%)
NESCO	513.15	14.11
GARWARE TECH.	1945.00	12.67
VAIBHAV GLOBAL	1876.65	10.88
GE T&D INDIA	98.00	9.99
LEMON TREE HOTEL	26.70	9.88

12:26 PM

June Quarter Result :: Motherson Sumi Systems

>> Consolidated net loss at Rs 810.5 crore

>> Revenue at Rs 8,503.9 crore

>> EBITDA loss at Rs 630 crore

12:23 PM

All but two PMS schemes post gains in July, but most underperform Nifty

The large-cap PMS category gained 5.5 per cent in July, underperforming the Nifty, while the mid-cap category returned 6.3 per cent, higher than Nifty MidCap 100’s 5.2 per cent.

 

The small-cap and multi-cap PMS categories surged 7.2 per cent and 6 per cent, respectively, underperforming Nifty SmallCap 100 (8.5 per cent) and Nifty500 (6.6 per cent). READ MORE

12:13 PM

Import curbs on 101 defence items open big avenue for L&T, Bharat Forge

The government’s policy announcement on the defence sector putting curbs on imports, providing clarity on timelines, and strengthening its “Make in India” initiative bode well for all domestic defence sector suppliers. Government-owned defence undertakings, such as Bharat Electronics (BEL), Hindustan Aeronautics (HAL), Bharat Dynamics, and Cochin Shipyards have already been in the spotlight against the India-China stand-off. READ MORE

12:02 PM

BROKERAGE VIEW:: Centrum Broking on UltraTech Cement

UltraTech Cement’s presence in five regions across the country helps it to balance realisation gains without volume loss. Though cost savings are commendable in 1Q we await sustainability. UTCEM’s focus on balance sheet health will only improve as the acquired assets consolidate. We have maintained our earnings estimates at Rs103.9/Rs140.8 and continue to value UTCEM at the replacement cost of Rs11.2bn/mn tonne. We maintain our ADD rating with a price target of Rs 4,106/sh, at our target price the stock trades at 12.5x EV/EBITDA FY22e earnings.

12:00 PM

BROKERAGE VIEW:: Prabhudas Lilladher on Shree Cement

Rating: REDUCE | CMP: Rs 22,396 | TP: Rs 19,100

Shree Cement reported Q1FY21 earnings marginally below our expectations due to higher costs. The company depicted strong maturity over the last one and a half years with tight discipline on volumes and prices in its North market. This is reflected in the highest ever margins since FY09. However, we believe that margins have peaked-out as we see stiff competition from new capacities, weak demand outlook, and increased likelihood of leakage on volumes coupled with the widening gap between A and C category brands. Peaked out margins, slowing growth and stretched valuations (EV/EBITDA of 19.5x and P/E of 38.7x FY22E) presents a strong rationale for meaningful downside in the stock. Due to expensive valuations and restricted earnings growth, we downgrade the stock to Reduce with TP of Rs 19,100, EV/EBITDA of 16x FY22e.