MARKET WRAP: Sensex settles 178 pts higher; defense stocks rally up to 12%

All that happened in the markets today

4:11 PM

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

"The benchmark indices ended with a gain of 2.4 per cent, on a weekly basis, as optimism about a continued recovery in economic activity offset the concerns raised by an unabated rise in virus infections. Globally the US monthly employment report and domestically the PMI survey seemed to indicate that the worst of the lockdown economic impact is over. However, any extension or resetting of lockdown measures, due to increasing infections, could negate the gains. Progress of a vaccine trial also added to the optimism. In spite of improving economic data, markets are still largely moving on hope rather than on any real change in the ground realities. With intraday volatility increasing, investors are advised to remain cautious."

3:43 PM

SECTOR WATCH: Here's how sectoral indices on the NSE fared today

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 gained 178 points or 0.5 per cent to settle at 36,021.42 while NSE's Nifty ended at 10,607, up 56 points or 0.5 per cent.

3:29 PM

Balkrishna Industries hits 52-week high; stock rallies 49% in two months

Shares of Balkrishna Industries (BKT) hit a 52-week high of Rs 1,316, up 3 per cent on the BSE on Friday, on the expectation of strong earnings going forward. The stock surpassed its previous high of Rs 1,298 touched on February 20, 2020. It was trading higher for the sixth straight day. In the past two months, the stock of BKT has rallied 49 per cent, as compared to a 13.4 per cent rise in the S&P BSE Sensex. READ MORE

3:12 PM

NEWS ALERT :: Commercial international flights to remain suspended till July 31, says DGCA

3:05 PM

MARKET UPDATE :: S&P BSE Healthcare index holds gains in a choppy trade

2:58 PM

Telecom stocks gain

COMPANY	LATEST(rs)	CHG(%)
VODAFONE IDEA	10.05	0.10
BHARTI AIRTEL	579.65	3.79
TATA COMM	625.00	2.27

2:54 PM

BUZZING STOCK:: Bharat Electronics surges 9%

2:46 PM

MARKET CHECK:: Omaxe continues to decline; falls another 10%

2:36 PM

Amid global crisis, Moody's rates TCS, Infosys, RIL above the sovereign

Moody's Investors Service has rated Tata Consultancy Services (TCS), Infosys and Reliance Industries above the sovereign due to their strong financials and significant global earnings.

 

Moody's said the stable outlooks on Genpact and UPL Corporation, in contrast to the negative outlook on India's Baa3, rating reflect that they can maintain their current ratings if the sovereign was downgraded to Ba1. READ MORE

2:29 PM

MARKET UPDATE:: Affle (India) freezes at 5% upper circuit

2:21 PM

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

2:17 PM

Motorcycle segment to outperform other auto verticals amid Covid-19: Fitch

Domestic motorcycle production would gain some support from shift in demand but more benefit would accrue from the export market as the demand for motorcycles remains relatively robust in many emerging markets (EMs), the Fitch Group unit said in a statement.

 

In India, motorcycle producers have largely returned to normal operations and the segment does not depend on imported components as much as other parts in the country's automotive industry, which reduces the risk of further supply chain disruptions, it added. READ MORE

2:09 PM

Rupee Closing

Rupee ends stronger at 74.64 per US dollar vs Thursday's close 75.01/$

1:58 PM

Nifty sectoral indices at this hour

1:51 PM

Vedanta to pave way for HDFC Life in Nifty. Time to buy insurance stocks?

"Currently, Nifty50 exchange-traded fund (ETF) and index AUMs stand at Rs 91,400 crore. Vedanta currently has an estimated weight of 44 basis points (bps) in the index, while HDFC Life is expected to enter the index with a weight of 90 bps, entailing ETFs and index funds buying worth Rs 820 crore. Zee Entertainment and Bharti Infratel currently have an estimated weight of 36 and 42bps respectively and will be replaced by SBI Life (70bps) and Divi’s Lab (64bps)," ICICI Securities said in a report dated July 2. READ MORE

1:41 PM

NEWS ALERT :: JSW Steel Q1 crude steel production at 2.96 mt, down 25.4% QoQ & 30.2% YoY

(Via BSE filing)

1:30 PM

BROERAGE VIEW:: Geojit Financial Services on Suven Pharma

RATING: BUY |  TARGET PRICE: Rs 587

Future looking bright post de-merger Suven Pharmaceuticals Ltd (SPL) is a pharmaceutical research expert that is in the business of Contract Development And Manufacturing Operations (CDMO).

• Suven Pharmaceuticals Ltd (SPL) demerged away from Suven Life Sciences in 2018 and was listed on 9th March 2020.
• During the year total revenues grew by 27% to Rs.834crs driven by 18% growth in CRAMS, 41% growth in Speciality chemicals and 40% growth in Formulations.
• In the formulation segment, the company has files 11 ANDAs with the USFDA out of which 2 have already commercialised, while 3 are expected to be commercialised in the coming year.
• SPL’s 25% stake in Rising Pharma yielded an unrealized profit of Rs.48crs during the year
• We recommend a “Buy” with a target price of Rs.587 based on 18x FY22 EPS

1:27 PM

BROKERAGE VIEW:: Prabhudas Lilladher on Motherson Sumi Systems

Rating: BUY | CMP: Rs 104 | TP: Rs 116

• We believe this reorganization would lead to better value discovery of the global businesses in the long run as currently we are valuing MSS on consolidated basis. The performance of existing entity would be judged to its global peers.
• Our view on MSS remains intact as we believe with gradual ramp-up of greenfield plants, healthy order book at Eur13.6b and SOP (start of production) with Eur10.1b orders, BS6 content increase at S/A bode well for the company. We maintain BUY with price target of Rs116 (18x consol EPS).

1:25 PM

BROKERAGE VIEW:: Edelweiss Securities on Tata Power

Tata Power (TPCL) has approved: i) a preferential issue of 490mn shares to promoters at INR53 apiece (20% higher than yesterdays CMP, equals consensus TP); ii) an InvIT platform for its renewable business. We reckon: i) the amount thus raised of INR26bn will be utilised to pare debt (current D/E at 2.2x) and would reduce interest cost by 5%; ii) the deal is 18% equity-dilutive but EPS-neutral; and iii) it would invigorate investors’ lost confidence as balance sheet gets leaner and stronger, thereby brightening up growth prospects. Clearly, TPCL’s strategic intent—business restructuring and deleveraging—is getting stronger (refer charts below). Hence, we are cutting CoE assumption by 75bps, which is fair given market conditions. Maintain ‘BUY’ with a revised TP of Rs 60 (earlier Rs 51). It remains our preferred sector pick.

1:23 PM

BROERAGE VIEW:: Edelweiss Securities on Jindal Steel & Power

We like JSPL as the company is reaping the twin benefits of cash accretion through higher sales volume and deleveraging the balance sheet despite extremely challenging times for the sector. We maintain ‘BUY/SO’ with TP of Rs 190 with an option value of Rs 20/share owing to divestment of Jindal Shadeed. The stock is currently trading at 5.2x FY22E EBITDA.

1:20 PM

BROKERAGE VIEW:: Emkay Global Financial Services on Banks

After the recent up-move in stocks, we prefer to remain cautious amid continued disruption leading to subdued growth and elevated asset quality risk post Q2FY21. Clamor for one-time restructuring is on the rise, mainly for stressed SME and select corporate sectors, but it may only defer the NPA pain, while any higher provisioning requirement (>5%) may still hurt the earnings. Our preferred picks among banks are ICICI and HDFCB, followed by SBI in PSBs, given their better shock absorption capacity. Within the NBFC space, we prefer HDFCL, Cholamandalam Investment and Finance Company (CIFC) and SHTF. In the insurance space, we are OW on SBIL, HDFCSL and UW on MAXL and IPRU in our sector EAP. However, given the sharp run-up recently, valuations are not cheap, limiting upside potential.

1:16 PM

Defence stocks rally as MoD approves military purchases worth Rs 38,900 cr

Walchandnagar Industries, Bharat Electronics, Bharat Forge and Apollo Micro Systems, and other stocks which are engaged in defence business were also gained in the range of 3 per cent to 10 per cent on the BSE. In comparison, the S&P BSE Sensex was up 0.54 per cent at 36,038 points at 12:40 pm. READ MORE

1:09 PM

RIL net debt to dip with rights issue, Jio stake sale: Morgan Stanley

It said that multiple catalysts are in play with faster than expected deleveraging, improving demand and margin outlook on refining and chemicals, top quartile earnings CAGR of 23 per cent over F20-23, and digitisation, supporting multiples.

 

Reliance Industries announced today an investment of $252 million by Intel Capital for a 0.39 per cent stake in Jio Platforms. READ MORE

12:58 PM

MARKET COMMENT :: Jyoti Roy, DVP Equity Strategist at Angel Broking on Jio-Intel deal

>> With the Intel deal, the company has raised investments of Rs 1,17,588 crore for a 25.1% stake in Jio Platforms from marquee investors like Facebook, Silver Lake Partners, General Atlantic, KKR, Intel etc. The company well on it’s way to achieve a net debt free status by raising INR 1.7lakh cr. through a combination of stake sale in Jio Platforms and rights issue which is leading to a rerating for the company.

 

We are positive on Reliance Industries Ltd. from a long term perspective as we believe that the digital and retail business will be key growth drivers for the company going forward. Potential listing of the digital and retail business over the next 3-5 years would also lead to significant value unlocking for shareholders in the long run. We also expect the hydrocarbon business to recover in the second half of the year as demand for petro products normalizes. Given no significant capex outlay in the near future, the hydrocarbon segment should generate free cash flows which can be used to fund expansion in other businesses. 

12:51 PM

Crompton Consumer's fortunes may light up as Covid-19 lockdown eases

Crompton Greaves Consumer Electricals (Crompton Consumer) has gained about 21 per cent since May lows. While the company's March quarter performance had shown resilience on the margins front, even as sales declined, the easing of the lockdown has improved sentiment. Analysts, despite cutting their FY21 earnings to factor in the lockdown impact, have also been hopeful of a faster recovery for the company, given it’s product range, which is less discretionary and seasonal in nature. READ MORE

12:41 PM

Uptick in annuity cash flows key for Prestige Estates projects

The Prestige Estates Projects stock has shed about 15 per cent since its results last week on disappointing March quarter (Q4) and a muted near-term outlook. Prior to the recent correction, the stock was the best performer among realty stocks since mid-May, gaining 65 per cent. Given its steady annuity income, the Bengaluru-based realty player was expected to be less impacted than listed players who are primarily in the residential space.  READ MORE

12:31 PM

Most active stocks by volume

COMPANY	PRICE(rs)	CHG(%)
VODAFONE IDEA	10.08	0.40
SUZLON ENERGY	5.90	4.98
DISH TV INDIA	8.22	-4.08
MOTHERSON SUMI	98.75	-4.73
TATA POWER CO.	50.80	1.91

12:21 PM

Trading volumes spurt in June; buoyancy in stock market boosts activity

The average daily trading volume (ADTV) for June on the NSE was Rs 61,400 crore, a YoY jump of 95 per cent. The BSE’s ADTV of Rs 5,000 crore, too, was double the June 2019 figure, the data compiled by ICICI Securities showed. Equity and currency derivatives, and mutual fund (MF) trading also witnessed a jump in volumes. The buoyancy in the stock market, especially in the broader markets, coupled with the entry of new investors, has increased activity, said experts. READ MORE