MARKET WRAP: Indices end flat, Sensex up 60 pts; ITC, TCS rise nearly 2%

All that happened in the markets today

4:03 PM

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

"Indian markets traded with volatility and finally ended the day with a positive bias. Virus infections continued to rise unabated and this fear combined with a sell off seen in the US markets, in the previous trading session, served to bring in doubts regarding the continuation of the momentum seen in recent times in the market. Investors would do well to stay nimble, watch global sentiments and trade cautiously"  

3:43 PM

SECTOR WATCH:: Nifty IT, Nifty FMCG gain 0.57% each

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 ended at 38,417, up 60 points, or 0.16 per cent while NSE's Nifty ended at 11,355, up 21 points or 0.19 per cent. 

3:24 PM

AstraZeneca Pharma hits fresh record high of Rs 4,489; stock surges 15%

Continuing their northward movement, shares of Astrazeneca Pharma India hit a fresh record high of Rs 4,489, up 15 per cent on the BSE on Monday, in an otherwise range-bound market, amid expectation that the company’s candidate, AZD1222, could be viewed as a frontrunner in a global race to deliver an effective vaccine to combat the Covid-19 virus. READ MORE

3:12 PM

BROKERAGE VIEW:: HDFC Securities on Asian Paints

RATING: REDUCE | TARGET PRICE: Rs 1,800

Asian Paints (52/64% revenue/PAT share) with 2.5-7x active dealers than the next three paint companies remains de-facto king in distribution/supply chain of paints in India. Coupled with better price laddering of products across categories/price points, this has ensured its unhindered dominance over decades. Promising optionality in waterproofing/other adjacent categories (we build in 40-50bp incremental growth from waterproofing) could surprise on the upside. We build in Sales/EBITDA/PAT CAGR of 8/9/10% over FY20-23E. Alas! all pluses seem priced-in at 55x Sept-22 P/E. We initiate coverage with a Reduce Reco and DCF-based TP of Rs. 1,800/sh (implying 50x Sep-22 P/E).

3:02 PM

HDFC's all-time low core valuations offer an interesting proposition

Over the weekend, India’s largest housing financier – Housing Development Finance Corporation (HDFC Limited) announced that it has approved Rs 47,000 crore towards the affordable housing segment. This is a significant milestone, given that the lender is often viewed catering to the mid- to upper-market segments. READ MORE

3:01 PM

IndiaMART InterMESH zooms 9% in an otherwise range-bound market

2:54 PM

Fall from intra-day high today in BSE500 stocks

COMPANY	DAY'S HIGH(RS)	DAY'S LOW(RS)	LATEST(RS)	FALL(%)
DHANUKA AGRITECH	794.00	738.35	738.70	-6.96
FUTURE CONSUMER	11.10	10.37	10.37	-6.58
VODAFONE IDEA	13.21	12.20	12.35	-6.51
GULF OIL LUBRIC.	698.00	653.90	654.00	-6.30

2:49 PM

Fall in GDP alarming; time for bureaucracy to take meaningful action: Rajan

"The sharp decline in economic growth should alarm us all. The 23.9 per cent contraction in India (and the numbers will probably be worse when we get estimates of the damage in the informal sector) compares with a drop of 12.4 per cent in Italy and 9.5 per cent in the United States, two of the most COVID-19-affected advanced countries," Rajan wrote in a post on his LinkedIn page. READ MORE

2:40 PM

Future Retail hits lower circuit for fifth straight day, slips 34% in 1 wk

In the past one week, the stock of Future Retail has underperformed the market by declining 34 per cent, as compared to a 0.73 per cent decline in the S&P BSE Sensex. Till 02:03 pm, a combined 1.38 million equity shares had changed hands on the counter. There were pending sell orders for 11 million shares on the NSE and BSE, exchange data shows. READ MORE  

2:34 PM

Stocks that hit 52-week high on BSE today

COMPANY	PRICE(rs)	52 WK HIGH	CHG(%)
ASTRAZENECA PHAR	4059.40	4082.00	4.31
DIXON TECHNOLOG.	8860.00	8935.00	3.30
GRANULES INDIA	381.80	382.95	10.35
INDIAMART INTER.	4721.60	4770.00	15.16
SUPREME INDS.	1419.25	1425.00	2.85

2:28 PM

SBI invokes personal guarantees of Bhushan Power & Steel promoter

The State Bank of India (SBI) has invoked the personal guarantees of Sanjay Singal, promoter of Bhushan Power & Steel Ltd, after the company defaulted on loans worth Rs 48,000 crore to a consortium of banks. The company's debt resolution is almost ready, with JSW Steel declared the highest bidder with Rs 19,700-crore as an offer for the company. READ MORE

2:17 PM

Rupee Closing

Rupee ends weaker at 73.34 per US dollar vs Friday's close of 73.14/$

2:11 PM

IPO Alert: Happiest Minds fully subscribed

2:07 PM

Sharp rise in IRCTC

2:06 PM

NEWS ALERT :: RBI announces Special OMO for Rs 10,000 cr on Sept 10

2:02 PM

BROKERAGE VIEW:: HDFC Securities on Berger Paints

RATING: SELL | TARGET PRICE: Rs 460

While BRGR remains a credible No. 2 in paints; at 66x Sept-22 P/E (18% premium to APNT), risk-reward seems unfavorable. We assign a DCF-based TP of Rs. 460/sh (implying 55x Sep-21 P/E). Implied assumptions: (1) 10-year revenue CAGR: 12.6%, (2) FY20-30E/FY30-41E FCFF CAGR: 20/13.5% resp. (3) WACC: 10.5%, and (4) terminal growth: 6%, FCF/PAT conversion of ~70% over FY20-30E. Initiate with a Sell Reco.

1:57 PM

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

1:49 PM

Expert View :: Yash Gupta - Equity Research Associate at Angel Broking on AllCargo delisting's floor price

Allcargo Logistics Ltd board approves delisting proposal and set floor price at ₹92.58, which is 18.8% discount to its current market price of ₹114.15.Promoter and promoter group of the company will acquire all the fully paid-up equity shares of the company having a face value of ₹2 held by the public shareholders of the Company. As per the last filling, the public holds 29.99% of paid-up equity share capital of the company. Delisting will be a positive development for the Company but the proposed delisting prices is not upto expectation of public shareholders

1:41 PM

BUZZING STOCK:: NTPC slips nearly 3%

1:34 PM

NEWS ALERT :: Fitch cuts India FY21 GDP forecast to -10.5% from -5% earlier

1:27 PM

MARKET CHECK:: Most realty stocks slip in trade; S&P BSE Realty index dips 1%

1:12 PM

BUZZING STOCK:: Wabco India leaps 10%, hits new 52-week high

1:03 PM

BROKERAGE VIEW:: Edelweiss Securities on Heritage Foods

Heritage Foods (HFL) has doubled from its March low (down 58% from its January-2018-high). FY20 was a challenging year owing to a harsh season, which dragged down core EBITDA 32% YoY. That said, we remain convinced about HFL’s prospects following: i) Margin revival on the back of benign milk prices and pricing power to drive up EBITDA 30% in FY21 (up 25% YoY in Q1FY21). ii) Robust B2C milk portfolio (65% of sales) relatively insulated from covid-19 fallout. iii) Focus on technology-enabled integrated milk procurement and a consistent scale-up (procurement up 34% in last three years). All in all, we expect RoCE to jump 640bps in FY21 and 860bps over FY20–22 to 23%. Hence, we are revising up TP by ~15% to Rs 456 as we are raising the core business’s PE by 15% to 18x FY22E (15.5x earlier). We however, are raising the discount on its stake in Future Retail from 20% to 30% (in the wake of RIL’s buyout). Maintain ‘BUY’.

1:02 PM

BROKERAGE VIEW:: Centrum Broking on FDC

FDC’s Q1FY21 ahead of our estimates. Revenues declined 10% YoY/ 7.5% QoQ to Rs 3.08bn, reflecting the impact of the Covid-19 pandemic and consequent lockdown across markets. Pandemic impacted anti-infectives and rehydration salts while export business continues to grow. Despite lower top-line, gross margins improved owing to price increases and lower spend aided the company to register highest EBITDA and PAT of Rs 1.04bn and Rs 917mn respectively. EBITDA margins for the quarter improved to 33.6% vs. 22.8% YoY vs. 8.8% QoQ. We expect growth recovery in India beyond 2H and export business to drive earnings with lower spend. We have raised our FY21E/FY22E earnings by 12%/15%, respectively. Maintain Buy with 18xFY22E and TP at Rs 425.

1:00 PM

Voda Idea gains 10% on board nod to raise Rs 25,000 crore via shares, debt

Shares of Vodafone Idea (VIL) rose as much as 10 per cent to Rs 13.21 on the BSE on Monday after the company’s board approved fund raising by up to Rs 25,000 crore by way of share sale and debt. After market hours on Friday, VIL had announced a fund raising of Rs 15,000 crore of equity and debt instruments each with aggregate quantum capped at Rs 25,000 crore. VIL is owned by Vodafone plc and the Aditya Birla group. READ MORE

1:00 PM

BROKERAGE VIEW:: Prabhudas Lilladher on Coal India

Rating: HOLD | CMP: Rs 132 | TP: Rs 150 

Coal India (COAL) reported Q1FY21 EBITDA in line with our expectation. In spite of attractive valuations (EV/EBITDA at 2.5x FY22e), stock would continue to remain under pressure due to frequent stake sale by Govt and pressure on profitability in E-auction (contributes>50% of EBITDA) in light of weak global prices and sluggish demand. Release of additional supplies due to upcoming auction of coal mining would further dampen outlook on E-auction segment. Considering all these structural issues, we maintain Hold rating with TP of Rs150.

12:57 PM

BROKERAGE VIEW:: ICICI Securities on Jubilant Life

RATING: BUY | TARGET PRICE: Rs 822

Considering recent rally in stock, we downgrade it to HOLD from Add with revised target of Rs822 based on FY22E, 8x pharma EBITDA and 4x LSI EBITDA (earlier: Rs749). We have raised target EV/EBITDA for pharma business from 7x to 8x considering potential for additional business from COVID-19 related contracts. Key downside risks: Regulatory hurdles and delay in ramp-up in Ruby-Fill.

Key upside risks: Additional business from Covid-19 related contracts.

12:55 PM

BROKERAGE VIEW:: LKP Securities on IndusInd Bank

Core operating performance of Indusind Bank remains healthy. A higher COVID provision is likely to safeguard the bank from credit disruption from COVID. Thus we recommend a BUY with price target of Rs 705 (based on 1.1x FY22E Adj. BVPS).