MARKET WRAP: Sensex up 420 pts as Infosys rallies 10%, Nifty ends at 10,740

All that happened in the markets today

4:03 PM

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

"In spite of negative global cues, Indian benchmark indices gained strength as the day went on, powered by the IT index and Infosys in particular. Infosys reported better-than-expected numbers and was backed by good deal wins and a decent outlook. Ground realities remained little changed, as the virus infections and geopolitical tensions created uncertainty on the global economic recovery. Investors need to remain stock specific and the earnings results and commentary should be watched out for."

3:45 PM

SECTOR WATCH:: Nifty Media ends in the red

3:43 PM

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

3:36 PM

CLOSING BELL

The S&P BSE Sensex gained 420 points or 1.16 per cent to settle at 36,472 while NSE's Nifty ended at 10,740, up 122 points or 1.15 per cent. 

3:25 PM

Bajaj Consumer Care zooms 20% on healthy operational performance in Q1

Shares of Bajaj Consumer Care were locked in the upper circuit band of 20 per cent at Rs 181 on the BSE on Thursday after the company reported a strong operational performance in June quarter (Q1FY21) with EBITDA (earnings before interest, taxes, depreciation, and amortization) margins coming in at 30.42 per cent against brokerages' estimate of around 20.5 per cent. EBITDA margin stood at 30.93 per cent in June 2019 quarter (Q1FY20) and 25.67 per cent in March quarter (Q4FY20). READ MORE 

3:19 PM

With inflation in India ticking higher it may be time for RBI to pause

Having cut its key lending rate by an aggressive 115 basis points (bps) in 2020, on top of 135 bps cuts in 2019, the RBI so far has had little success in spurring credit growth amid varying degrees of lockdowns across India.

 

Some economists and market insiders argue it may be prudent for the MPC, the policy committee, to hold its fire when it meets early next month. READ MORE

3:13 PM

Large Deals :: 4.4 lakh shares trade in 2 blocks on NSE at Rs 2,005/Sh

(Via CNBC TV18)

3:06 PM

NEWS ALERT :: India signs Air Bubble agreement with various countries, says Hardeep Singh Puri

>> Alert: Air Bubble essentially means air routes between two countries. Thues, India may soon start International flights.

3:02 PM

NEWS ALERT :: PM Modi to deliver keynote address at this year’s High-Level Segment of UN Economic and Social Council session

 >> Session is on Friday, July 17, 2020 at the United Nations in New York.

>> This year's address will be through video conferencing

2:55 PM

Capital infusion in 3 state-owned insurers 'credit positive': Moody's

The Rs 12,450-crore capital injection in three state-run insurance companies is "credit positive" as their capital had been significantly depleted over the last few years, Moody's Investors Service said on Thursday. Last week the Union Cabinet had decided to put on hold the merger of National Insurance, The Oriental Insurance and United India Insurance and approved a Rs 12,450 crore capital infusion into these three general insurers. READ MORE

2:50 PM

Strong metro rail order book, indigenisation initiatives bode well for BEML

Shares of BEML are up a good 60 per cent from their March lows. Though there are some near-term concerns on new order flows and project execution in the backdrop of lockdowns, the company's existing order book of close Rs 10,000 crore as on end March 2020 provides good revenue visibility of three and a half years. READ MORE

2:41 PM

MARKET INSIGHT :: What dragged Asian markets lower today?

2:34 PM

Private banks stare at washed-out Q1; moratorium, Covid-19 provisions eyed

For Edelweiss Securities, the April-June, 2020 quarter earnings are unlikely to bring forth any big reveal on asset quality, margins or loan growth for lenders. While the moratorium option will ensure nearly invariant asset quality, loan disbursements are likely to be muted, it said in a result expectation report. READ MORE

2:23 PM

Aditya Birla Fashions' rights entitlement shares tumble 39%

The dealings in the REs for Renunciation of Aditya Birla Fashion and Retail Ltd were permitted on the Exchange with effect from the July 8, 2020 and will close on July 17, 2020. The shares shall be settled on T+2 rolling settlement basis and the trades shall be settled on trade-for-trade basis. The REs shall be tradable in dematerialized form only. READ MORE

2:14 PM

NEWS ALERT :: Federal Bank cuts lending rates by 10-20 bps across tenures

2:04 PM

Rupee Closing

>> Rupee closes mildly lower at 75.19 per US dollar vs Wednesday's close of 75.15/$

1:57 PM

NEWS ALERT :: IndiGo releases fliers' survey

>> 68% of respondents consider airways as safest mode of transport

>> 55% fliers concerned about different quarantine rules across states

>> 55% of participants concerned over sitting in the aircraft among a lot of people

>> 62% passengers choose to opt for domestic travel in the near future

(As reported by CNBC TV18)

1:52 PM

Stocks that hit 52-week high on BSE today

COMPANY	PRICE(rs)	52 WK HIGH	CHG(%)
ALEMBIC PHARMA	968.00	987.95	2.34
BIRLASOFT LTD	108.05	110.80	2.95
DHANUKA AGRITECH	805.80	829.40	-0.26
DR LAL PATHLABS	1874.95	1936.15	-1.96
HCL TECHNOLOGIES	613.00	652.20	-0.36

1:45 PM

European shares dip in early deals

1:39 PM

Silver price gives competition to gold rally as industries fuel demand

In the Indian spot market, silver has turned most expensive since September 2013. On the MCX, September futures of silver is trading above Rs 53,000 a kg. In Mumbai’s Zaveri Bazar, the metal on Wednesday closed at Rs 52,195 a kg (Rs 840 costlier than Tuesday) — the highest in seven years. The all-time high price of silver is Rs 75,000 a kg, recorded in April 2011. READ MORE

1:30 PM

INDEX GAINER:: Mahindra & Mahindra trades 3.6% higher

1:18 PM

Residential unit sales at 10-yr low in H1; office vacancy rate at 4-yr high

“The impact can be gauged by the fact that sales and launches have capitulated by 84 per cent and 90 per cent YoY in the April – June 2020 quarter of the calendar year 2020 (Q2-2020) across the eight markets under review. NCR, Chennai and Hyderabad had near zero sales during this period, while developers were forced to postpone launches across markets due to labour unavailability and the well anticipated drop in demand,” the Knight Frank report said. READ MORE 

 

1:10 PM

Expert View :: Silver may soon test 54,000-55,000, says Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking

>> MCX silver prices touched 7-year high of 51,999 levels today. Generally, silver prices follow trends seen in gold prices that touched life-time high of 49,348 levels recently. Silver is following the gold trend and is heading towards upside.

>> Currently, the ratio between gold and silver is at 92.90. However, at the starting of the year 2020, it was around 83.72 mark. While, gold increased sharply, silver did not increase in this pandemic crisis. This is indicating positive signals for the silver prices also.

 

>> Globally, industrial demand ahas increased and ETF demand also supported the Silver. The holding of the biggest Silver ETF, Blackrock's ishare silver trust, has surged by $2.45 billion to $9.72 billion this year.

>> In India, good monsoon is also one of the reasons for the increase in prices. Demand for silver jewellery from rural areas has also supported the prices. We expect silver prices to test 54,000 to 55,000 levels soon.

12:59 PM

Wipro: Strong operating margin, cash position offer comfort to investors

ollowing the positive June 2020 quarter (Q1) results, announced on Tuesday after market hours, shares of Wipro surged by 15.5 per cent on Wednesday, outperforming the Sensex, which ended flat.

 

The sharp uptick in Wipro’s stock, which was the top gainer in the Nifty IT index, also rubbed off on other IT companies, with the sectoral index jumping 5 per cent.  READ MORE

12:51 PM

MARKET CHECK:: Top 5 gainers on the BSE at this hour

12:43 PM

MARKET CHECK:: BSE IT index pares gains

12:31 PM

BROKERAGE VIEW:: Centrum Broking on Mindtree

Rating: BUY | Target Price: Rs 1,020

We expect Mindtree's US dollar revenues to decline by 5% YoY for FY21 and this almost at par with Tier 1 peer TCS. Mindtree now has the highest contribution from Top account (30% of total revenues) which is highest in the sector. This can remain a constraint in P/E multiple expansion. We value Mindtree at 16.5x June 22E EPS which yields a target price of Rs 1,020/sh. Our target multiple of Mindtree is 11 per cent discount to our current target muiltple of LT Infotech.  

12:26 PM

BROKERAGE VIEW:: Emkay Global Financial Services on Federal Bank

• Federal Bank reported PAT of Rs4bn, beating estimates of Rs3bn, led by stable margins, higher treasury gains and lower provisioning. The bank has accelerated specific PCR, but cumulative contingent Covid-19 provisions stand lower at Rs1.86bn; 0.15% of loans.
• The net loan moratorium rate in value terms stood at 24% vs. 35% in Phase 1, but it was higher in retail at 33% vs. 40% earlier. As per management, customers with no EMI paid as a percentage of total moratorium book stands lower at 12% and will be closely watched.
   
• The bank’s Tier I ratio (ex Q1FY21 profits) stands at 13%, but it is not looking to raise capital in a hurry unlike other banks. Clarity on MD’s term extension beyond September’20 is still awaited from the RBI.
   
• We revise our TP to Rs58, factoring in earnings/multiple of 0.7x FY22E ABV and retain Buy for its strong retail re-orientation, healthy liability profile, reasonable capital level (Tier I at 13.0%) and lower valuations among mid-size banks.

12:23 PM

BROKERAGE VIEW:: ICICI Securities on Bandhan Bank

We adore Bandhan’s long-term franchise of MFI, affordable (unique, socially responsible and market leader with >20 years track record) housed under a solid banking franchise with adequate capitalisation and strengthening liabilities. Maintain BUY with target price of Rs 455.

12:20 PM

BROKERAGE VIEW:: Edelweiss Securities on Oberoi Realty

Covid-19 dragged new sales of Oberoi Realty (OBER) by 28% YoY in Q4FY20 and 90% YoY in Q1FY21. The company sold just five units in Q1FY21 worth Rs 242mn. The annuity business suffered too with rental revenues declining 10% QoQ in Q4FY20. The pandemic has: i) dampened the already weak demand for luxury housing; ii) led to a deferral of timelines for annuity projects; and iii) created uncertainty pertaining to launch of the Goregaon Phase 3 and Thane projects. We believe near-term sales outlook is challenging even as a lean balance sheet provides comfort. Maintain ‘HOLD’ with a revised TP of Rs 385 (Rs 360 earlier) as we roll forward the valuation to September 2021E.