MARKET WRAP: RIL, HDFC Bank help Sensex settle 466 pts higher; pharma slips

All that happened in the markets today

4:15 PM

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

Indian indices ended with gains, in sync with solid global cues. Global markets rallied on hopes of a faster Chinese economic revival which could provide support to the global economy. The positivity regarding the recovery is extending to Indian markets also, in spite of surging infections, along with liquidity. The first signs of de-escalation of India –China border tensions should also calm the markets. We maintain the sell-on-rise strategy and advise investors to trade with caution.

3:44 PM

SECTOR WATCH:: Barring Nifty Pharma, all sectoral indices on the NSE end in the green

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 466 points or 1.29 per cent to settle at 36,487 while NSE's Nifty ended at 10,764, up 156 points or 1.47 per cent. 

3:28 PM

MARKET CHECK

3:20 PM

INDEX GAINER:: Bajaj Finance advances 6.7%

3:09 PM

RIL, HDFC Bank contribute the most to the S&P BSE Sensex's gain today

3:01 PM

Performance may be quite volatile in FY21 due to coronavirus: Dr Reddy's

Sharing information with the company's shareholders, the drug major said overall, there was no major impact of the pandemic during the last fiscal, including the fourth quarter.

 

"Having said so, we believe FY2021 will have more uncertainties than ever before. Consequently, our overall performance may be quite volatile," Dr Reddy's Laboratories said. READ MORE

2:58 PM

ALERT :: Dow Jones Futures climb 300 pts

2:52 PM

Marico declines 4% on profit-booking post June quarter business update

Shares of Marico slipped 4 per cent to Rs 344 in intra-day trade on the BSE on Monday on profit-booking after the company said it has seen a 13-15 per cent decline in revenues for the quarter ended June 2020 (Q1FY20-21). The Q1 contributes 31 per cent to revenues. In an update on quarterly performance, Marico said with the Q1 top-line translating into a single-digit growth over the annual run rate of FY20, the company expects to bounce back to posting volume and value growth during the rest of the year. READ MORE

2:48 PM

Covid-19 may turn extra Rs 1.67 trn debt into delinquent assets: Ind-Ra

Given that 11.57 per cent of the outstanding debt is already stressed, the proportion of stressed debt is likely to rise to 18.21 per cent of the outstanding quantum. Ind-Ra expects the corresponding credit cost, money set aside as provision for bad loans, to be 3.57 per cent of the total debt.

 

The rating agency said it has analysed the degree of vulnerability of the top-500 debt-heavy private sector issuers, after assessing the mix between productive and non-productive assets held by each issuer along with their refinancing risks. READ MORE

2:46 PM

BROKERAGE VIEW :: Emkay on Equitas Holdings

We retain our Buy rating with a revised target price of Rs65 (up from Rs54), based on 0.7x FY22 ABV, given better deposit traction after a scare across SFBs in Q4, which should help the bank in the long run to protect its margins/RoA. However, asset quality performance and listing its SFB will remain key monitorable in the near term.

2:46 PM

BROKERAGE VIEW :: Emkay on Motherson Sumi

The restructuring exercise proposes to create a separate entity for the domestic wiring harness business (new company DWH), and a merger of parent entity SAMIL into MSS to bring in the remaining 49% SMR PBV stake and other auto/non-auto businesses.

 

The proposed share swap implies a valuation of ~Rs244bn for SAMIL. The transaction would be EPS dilutive on our estimates, and to be EPS accretive by FY22E, a strong turnaround would be needed in SMR PBV and SAIML’s auto/non-auto businesses.

 

A shift to this new platform is a step toward the company’s Vision 2025 – revenue target of $33-35bn with ROCE of 40%. Retain Buy with a target price of Rs 115, based on 20x FY22E EPS.

2:44 PM

BROKERAGE VIEW :: Nomura on gas transmission companies

With a sharp decline in transmission volume, we expect post-tax ROCE for the pipeline business to fall to just ~6% for FY21-22F (vs 12% as per regulation). Further, we expect the petchem segment to remain in losses over FY21-22F. We reiterate our Reduce rating on GAIL with target price of Rs 85. Indraprastha Gas [Buy, target: Rs 575] is our preferred gas name.

2:42 PM

BROKERAGE VIEW :: ICICI Securities on Sobha Developers

Sobha’s net debt reduced marginally in Q1FY21 for the second consecutive quarter. We have built in FY21/22E volumes of 2.7msf and 3.6msf respectively, vs. annual run rate of 4msf to reflect the slowdown. We retain our BUY rating with a SOTP based target price of Rs261/share. Ability to keep debt levels in check remains the key monitorable.

2:40 PM

BROKERAGE VIEW :: Motilal Oswal Financial Services on ONGC

ONGC did not see any reduction in crude oil demand starting 1st Apr'20. However, gas production saw modest decline of 9% during the lockdown, which has now been restored to normal pre-COVID levels.

 

However, we expect no incremental change in production volumes for both oil and gas in the near term. Also, OINL has guided for oil and gas production in FY21 to be marginally lower YoY.

 

The stock trades at 6.1x FY22E EV/EBIDTA and 5.7x FY22E EPS of Rs 17.1 with FY22E PBV of 0.4x. We use SOTP-based fair value of 8x FY22E adj. EPS of Rs 13.7 and add investments to arrive at a price target of Rs 110. Maintain Buy.

2:36 PM

NEWS ALERT

2:27 PM

NEWS ALERT :: Manappuram Fin board approves raising funds worth Rs 300 cr via NCDs

2:21 PM

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

2:16 PM

NEWS ALERT :: Power Mech bags order worth Rs 1,507 cr; stock up 4%

2:06 PM

Rupee Closing

Rupee closes mildly weaker at 74.67 per US dollar vs Friday's close of 74.63/$

1:57 PM

TCS gains 9% in 4 days ahead of Q1 nos on Thursday; stock nears record high

Shares of Tata Consultancy Services (TCS) were trading higher for the fourth straight day, up 3 per cent at Rs 2,269 on the BSE on Monday ahead of its first quarter (April-June) earnings of the financial year 2020-21 (Q1FY21) on Thursday. The stock was trading at its highest level since November 2019 and was just 1 per cent or Rs 27 away from its all-time high level of Rs 2,296, touched on September 3, 2019, in intra-day trade. READ MORE

1:46 PM

Fund Pick: UTI Equity Fund has consistently outperformed its peers

UTI Equity Fund has featured in the top 30 percentile of CRISIL Mutual Fund Ranking (CMFR) during the past eight quarters ending March 2020. Ajay Tyagi has been managing the fund since January 2016; he has been associated with UTI AMC since 2000.

 

Assets under management (AUM) of the scheme increased over 1.75 times from Rs 5,163 crore in June 2017 to Rs 9,057 crore in May 2020. READ MORE

1:36 PM

MARKET UPDATE :: Nifty races past 10,800 after 4 months

1:35 PM

MARKET UPDATE :: Sensex extends rally, up 600 pts now

1:26 PM

BUZZING STOCK:: NFL jumps over 13.5%

>> The compay said it has achieved highest-ever fertilizer sale of 12.85 Lakh MT in first quarter (April-June) of this financial year. This is about 21.5 per cent higher than the sales of 10.57 LMT made by company in the first quarter of 2019-20.

1:23 PM

Most active stocks by volume

COMPANY	PRICE(rs)	CHG(%)
SUZLON ENERGY	5.61	-4.92
VODAFONE IDEA	9.87	-1.60
S A I L	31.95	3.40
B H E L	40.70	5.30
ASHOK LEYLAND	50.90	3.56

1:12 PM

European indices trade higher in early deals

1:09 PM

Covid-19 impact: Exchanges see just 4 IPOs in June quarter

Although there has not been much activity, companies are considering their long-term growth plan, and have started to engage in conversations towards their IPO preparation in this economic slowdown, leading consultancy EY India said on Sunday. READ MORE

1:00 PM

Amid Covid-19 crisis, spotting early signs of recovery is key

The quarter ended June was so bad that about 25 per cent of the economic activity that existed a year was shaved off, analysts say. While it is certain that reopening of businesses will help improve economic activity, it is key to not lose sight of the pain points, and spot the early signs on the recovery track. READ MORE