Sensex surges 511 pts on buying in RIL, banks; mid, small-caps underperform

All that happened in the markets today

3:56 PM

Market Closing Comment :: Deepak Jasani, Head Retail Research, HDFC Securities

Indian equity benchmarks continued to rise for the fifth consecutive day on July 21. Volumes on the NSE were sharply higher showing wide participation among stocks. PSU stocks (on the back of divestment process gaining momentum), Reliance media companies, Banks, Cement and Auto stocks witnessed buying interest, while Bajaj Finance and Bajaj Finserv corrected post not- so-encouraging results from Bajaj Finance. FMCG, Pharma and Media stocks also underperformed.

 

Asian shares were mostly higher Tuesday on rising hopes for an effective vaccine to fight the coronavirus pandemic. European stocks climbed to a four-month high and German equities erased losses for the year after leaders agreed on a landmark recovery plan. EU leaders clinched a deal on €750B recovery fund. The recovery fund will be available from January 2021 and there will be no new bridge financing until then. In addition to the recovery fund, the EU said its next budget, which will fund initiatives between 2021 and 2027, will total €1.074T.

 

Markets have closed well for the 5th consecutive session gaining 550+ points in the process. While momentum shows some more upside in the offing, lack of correction suggests caution and mild profit taking.

3:42 PM

BSE Snapshot at Close

3:41 PM

Broader markets :: Midcaps fail to participate in rally, end flat

3:40 PM

Sectoral trends on NSE at Close

3:37 PM

Sensex Heatmap at Close

3:35 PM

Closing Bell

>> Markets built on Monday's gain. The S&P BSE Sensex settled 511 points, or 1.37 per cent, higher at 37,930.33.

>> The broader Nifty50 breached 11,150 on the upside and closed at 11,170.20 level, up 148 points or 1.34 per cent.

3:29 PM

The mystery investor who made a killing in Ruchi Soya

Indore-based edible oil maker Ruchi Soya Industries has been having a stellar run ever since it was relisted on the bourses, emerging from a bankruptcy with a new promoter on board — yoga guru Ramdev's Patanjali Ayurved. On January 27, the shares were listed at Rs 17 apiece. READ MORE

3:28 PM

MARKET CHECK

3:21 PM

INDEX GAINER:: Power Grid surges over 6%

3:20 PM

June Quarter Result :: HDFC Life's net profit grows 6% at Rs 451 cr vs Rs 425 cr YoY

>> Value of new business down 43%  at Rs 291 cr vs Rs 509 cr YoY

>> New business margin at 24.3% Vs 29.8% YoY

>> New biz premium down 33% at  Rs 2,623 cr Vs Rs 3,926 cr YoY

>> Renewal premium up 24% at  Rs 3,239 cr Vs Rs 2,610 cr YoY

3:11 PM

Den Networks, Hathway Cable freeze at 10% upper circuit post Q1 results

Shares of Den Networks and Hathway Cable & Datacom were locked in their 10 per cent upper circuit bands on the BSE at Rs 109.60, and Rs 52.70, respectively, on Tuesday after reporting a strong set of numbers for the quarter ended June 2020 (Q1FY21). These stocks also hit their respective 52-week highs on the BSE. READ MORE

2:57 PM

Gold firms near nine-year high on increased stimulus bets, silver soars

Spot gold was up 0.2% at $1,818.23 per ounce by 0510 GMT after hitting its highest since September 2011 on Monday. U.S. gold futures rose 0.2% to $1,821.10.

 

"What's really driving the gold market is stimulus and we are going to get more of it. It's the eye candy that's driving sentiment right now," said Stephen Innes, chief market strategist at financial services firm AxiCorp. READ MORE

2:50 PM

Rahul Bajaj steps down as Bajaj Fin's chairman; stk dips 8% from day's high

"Rahul Bajaj, Non-Executive Chairman of the Company, having been at the helm of the Company since its inception in 1987 and the Group for over five decades, as part of succession planning, has decided to demit the office as Chairman of the Board w.e.f. close of business hours on July 31, 2020. "He would, however, continue to serve the Company as a Non-Executive Non Independent Director," it said. READ MORE

2:43 PM

MARKET CHECK:: Mastek jumps over 15%

2:38 PM

L&T Q1 preview: Analysts see up to 90% YoY fall in profit on Covid-19 disruption

The April-June quarter of the fiscal year 2020-21 (Q1FY21) is likely to be one of the weakest quarters for the Engineering & Capital Goods (ECG) companies as the Covid-19-induced lockdown triggered demand and supply disruptions, contract labour shortage and paucity of liquidity, that stalled project execution. Order inflows during the period, analysts say, were impacted by a delay in tendering/awarding projects while crude oil price crash would have impacted orders in hydrocarbon space of the companies. READ MORE 

2:34 PM

Rupee Closing

Rupee ends near day's high at 74.75 per US dollar vs Monday's close of 74.92/$

2:24 PM

MARKET CHECK:: Sensex extends gains, up 500 pts

2:16 PM

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

2:11 PM

BROKERAGE VIEW:: Centrum Broking on Wipro

Wipro’s Q1FY21 results were a beat on IT Services EBIT margin which helped deliver PAT beat. US dollar revenues were in-line with estimates. The new CEO Mr Thierry Delaporte took over effective July 6th, 2020 and street would watch for turnaround potential under his leadership. Mr Delaporte had successful track record as Chief operating officer at Capgemini and we see scope improvement in growth prospectus. We expect Wipro’s US dollar revenues to decline by 6% for FY21 ( vs 5.8% decline modelled for TCS). Led by 1QFY21 IT Services margin beat, we raise consolidated EBIT margin assumptions. This leads us to raise EPS estimates by 10.8/8.1% for FY21/FY22E. We believe Wipro performance over next one year would be watched on a turnaround perspective under the new CEO. With net cash of Rs 299bn (20% of Mcap) and sizeable buyback expected in September 2020, we see catalysts for steady outperformance.  We believe risk return and margin of safety remains favorable. Raise TP by 15.5% to Rs 275/sh (14.5x June 22E EPS vs 14x June22E EPS earlier). Rate BUY ( vs Add earlier)

2:07 PM

BROKERAGE VIEW:: ICICI Securities on Majesco

RATING: BUY | TARGET PRICE: Rs 705

 

Majesco India, which holds 74.07% stake in the US entity, will receive cash of US$ 420 million (Rs 3,154 crore). Assuming a capital gains tax, the company would receive cash of nearly Rs 2,555 crore. This, coupled with cash of Rs 26 crore on the company's balance sheet, would take total cash with the firm to Rs 2,581 crore or Rs 852/share. The company plans to distribute this cash via dividend or buyback. Assuming a 10% holding discount to cash and uncertainty on method of distribution, we conservatively arrive at a target price of Rs 705/share, 76% upside from current levels. The transaction is expected to be completed by the end of 2020 and is subject to regulatory approval in India and the US.

1:56 PM

MARKET CHECK :: Sensex off highs

1:45 PM

What EU leaders agreed on the post-coronavirus recovery package

1. Key to the deal is a new element in EU policy making: the European Commission will borrow massively on the market and then grant much of the cash, rather than lend it, to countries most in need of economic stimulus.

 

EU leaders agreed the Commission would cheaply borrow 750 billion euros using its triple-A rating. Of that, it would disburse 390 billion in grants and 360 billion in cheap loans. READ MORE

1:35 PM

Bajaj Auto Q1 preview: Higher other income to cushion decline in net profit

Edelweiss Securities

 

The brokerage pegs the company’s revenues at Rs 3,099.9 crore, a decline of 60 per cent year-on-year (YoY) from Rs 7,755.8 crore logged in the corresponding quarter of FY20. Sequentially, the drop would be 54.5 per cent compared to Rs 6,815.9 crore of Q4FY20.

 

“We expect revenue to decline by nearly 60 per cent YoY. Besides, realisations and margins are expected to be adversely impacted by lower share of 3Ws (down to 10 per cent from 13 per cent in Q1FY20),” noted the brokerage in a results expectations report. READ MORE

1:27 PM

SBI Card Board approves raising Rs 1,500 cr via non-convertible debentures

In a regulatory filing on Monday, SBI Card said that its board "approved raising of funds by way of issuance of Non-Convertible Debentures (NCDs) aggregating to Rs 1,500 crores in one or more tranches over a period of time."

 

For the first quarter (April-June) of financial year 2020-21, the SBI Cards and Payment Services on Monday reported a nearly 14 per cent rise in its net profit at Rs 393.29 crore. READ MORE

1:19 PM

Firm realisations, cost control boost ACC's June quarter performance

ACC’s performance for the second quarter ending June 2020 (Q2) bore the brunt of lockdown as cement sales volumes declined. The company follows January-December accounting year. However, good realisations and cost control measures lifted the operational performance. READ MORE

1:11 PM

European markets open higher

1:07 PM

NEWS ALERT :: SBI General Insurance appoints Prakash Chandra Kandpal as new MD & CEO

1:00 PM

NEWS ALERT :: Vehicle registration for June tumbles by 42%: FADA

>> On a YoY basis, 2-Wheeler degrows by 40.92%, 3-Wheeler by 75.43%, CV by 83.83%, and PV by 38.34%.

>> Tractors registrations continue to march ahead with June numbers showing a growth of 10.86%

>> Robust Demand recovery observed in rural market leading to rise in sales volume of tractors, followed by 2W, small commercial vehicles. However, M&HCV and PV sales particularly in Urban pockets play laggards as Lockdown persists in many cities

Alert: FADA is Federation of Automobile Dealers Associations

(Source: FADA Statement)

12:53 PM

Mid-caps worst hit as analysts see 24% dip in Q1FY20 PAT for India Inc

Economic activity in most of the April-June quarter of financial year 2020-21 (Q1FY21E) came to a standstill when India locked down to contain the spread of the coronavirus pandemic. The lockdown hampered manufacturing, disrupted supply chains and froze demand, leading to significant revenue loss for India Inc. READ MORE

12:44 PM

HDFC Bank's Q1 provides some relief to investors despite higher bad loans

HDFC Bank’s June 2020 quarter (Q1) numbers, reported last Saturday, offer comfort to investors on the asset quality front with small moratorium book, accelerated recognition of non-performing assets (NPAs), and higher provisioning.

 

Therefore, despite higher bad loans and a sharp fall in retail loan originations in Q1, the stock of HDFC Bank jumped 3.1 per cent on Monday, outperforming the Nifty Bank index, which gained 1.6 per cent. READ MORE