MARKET: Indices snap 5-day rally amid weak global cues, Sensex dips 59 pts

All that happened in the markets today

4:08 PM

TECHNICAL VIEW:: Rohit Singre, Senior Technical Analyst at LKP Securities

"Nifty closed a day on a negative note after four consecutive sessions at 11,132 with loss of 30 points and formed a "Hanging Man" kind of candle pattern on the daily chart which is bearish reversal pattern by nature so any break below 11,050 can lead in more profit booking. Support for Nifty is coming near 11,050-11,000 mark. Any break below the said levels can drag down the index more and resistance is still placed at 11,200-12,240 zone. Nifty Bank closed the day at 22,883 with gains of 100 points; support for the Nifty bank comes in near 22,740-22,550 zone and resistance is seen near 23,000-23,200 levels."

4:04 PM

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

"Indian indices exhibited volatility and closed in the negative, in sync with negative global cues. The spike in US-Chine tensions hit the global markets while a surge in virus infections globally also impacted sentiment. Domestically, the private banking space gained on the back of earnings numbers from Axis Bank. However, Auto, IT and PSU Banks led the losses. Volatility is expected to continue due to expiry day tomorrow".

3:36 PM

Sectoral trends on NSE at Close

3:36 PM

Sensex Heatmap at Close

3:34 PM

Closing Bell | Markets end volatile day in the red

>> S&P BSE Sensex ended at 37,871.52 level, down 58.81 points or 0.16%

>> Nifty50 settles at 11,132.60 level, down 30 points or 0.27%. 

3:28 PM

MARKET CHECK

3:24 PM

Markets ride easy money wave, experts caution against asset price bubbles

The V-shaped rebound has been underpinned by gush of liquidity flooding the global financial system thanks to the balance sheet expansion, particularly by the central banks of G4. Concerns have surfaced on whether the US Federal Reserve (Fed) will stall its balance sheet expansion after rapid expansion this year, which has helped shore up markets. However, the easy money trade seems here to stay. The European Union announced a $850-billion recovery fund on Tuesday. Other G4 peers including Fed, Bank of Japan (BoJ) and Bank of England (BoE) too are expected to follow suit given the fragile economic environment. READ MORE

3:23 PM

Make gradual entry in mkts, understand risks: Sebi chief to small investors

Speaking at the industry body FICCI’s annual capital market conference Capam, Ajay Tyagi, chairman, Securities and Exchange Board of India (Sebi) said, “Increased retail participation isn't a cause of concern.” He was alluding to the sharp increase in new account openings and increase in share of retail investors in overall market volumes. READ MORE 

3:18 PM

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

3:13 PM

BROKERAGE VIEW:: Anand Rathi Shares on Infrastructure sector

Though the Covid-compelled disruption makes the already ambitious FY20-FY25 targeted plan more challenging, any success with efforts to iron out issues (which have plagued infrastructure development in India) as a part of this exercise would definitely have lasting effects for years to come, and could change the way infrastructure development is approached in India. The well-intentioned pipeline gets many matters right, but success would rest on the government’s ability to implement the plan well.  

3:13 PM

Corporate Announcement :: Tata Motors changes AGM date from August 11, 2020 to Tuesday, August 25, 2020 at 2 pm

Click here for the BSE filing

3:09 PM

Markets nudge higher but fund managers have task cut out in assessing firms

Analysts and fund managers seem to have discounted Financial Year (FY) 2020-21 and they are betting on stocks based on projected FY22 and FY23 numbers. Consensus estimates peg Nifty EPS growth of 10 per cent and 39 per cent for FY2021 and FY2022, respectively, according to Credit Suisse Wealth Management, India. A nationwide surge in Covid-19 cases, states going under lockdown and limited fiscal support, however, could pose significant downside risks to these estimates. READ MORE

3:02 PM

INDEX LOSER:: Tata Steel slips nearly 3%

2:56 PM

EXPERT COMMENT:: Kishore Narne of MOFSL shares his views on gold

“We have been bullish on gold for the last couple of years and the view has played out very well, and two quarters back in Dec’19, we have revised our targets from Rs 42,000/10gms to Rs 65,000/10Gms in 18-24 months. We continue to maintain this target as the fundamental backdrop which has driven gold over the span of the last four months which is the lower interest rates, negative rates in few economies, enormous amount of liquidity, and expanded fiscal balance sheets of governments which are trying to push growth amidst Covid-19. We do expect the anaemic economic growth would cause further isolation of economies and intensify protectionist policies and further aggravate trade-war which also helped gold in the past. We expect gold to keep up the momentum with occasional corrections, and we suggest investors to use every dip to keep buying gold over medium to long term targets of Rs 65,000," says Kishore Narne, Associate Director & Head, Commodities & Currencies, Motilal Oswal Financial Services. 

2:51 PM

Banks need to be recapitalised as moratorium ends on Aug 31: SBI report

It said while raising capital is important for banks, capital conservation will also be crucial as the moratorium ends on August 31 and banks will start recognising stress.

 

The problem is given the one-year freeze in IBC, resolution cannot happen at the same time and it is thus imperative that public-sector banks (PSBs) are either recapitalised or given the alternative of capital conservation, as it is not certain how much fiscal space the government might have for recapitalisation, the SBI report- Ecowrap said. READ MORE

2:45 PM

MARKET CHECK:: Sensex extends fall, now down over 300 pts

2:38 PM

Alembic Pharma shares gain 5% to hit a new high after robust Q1 earnings

The company's net sales grew 41 per cent at Rs 1,341 crore against Rs 949 crore in the corresponding quarter of the previous fiscal. EBITDA (earnings before interest, taxes, depreciation, and amortisation) rose 108 per cent to Rs 416 crore, while margins improved to 31 per cent from 21 per cent in the previous year quarter. Analysts on an average had expected a net profit of Rs 190 crore on revenues of Rs 1,123 crore for the quarter. In the past three months, the stock has rallied 60 per cent against a 20 per cent rise in the S&P BSE Sensex. READ MORE 

2:28 PM

BROKERAGE VIEW:: Centrum Broking on HCL Tech

While the last few quarters FCF was impacted owing to IBM payouts (in June 2019/June 2020 totaling to USD1620mn) as part of the acquisition, we see a swing in free cash flow from 2QFY21 onwards. Hence, we potential for substantially upping dividends or even exploring buyback after a few quarters. This itself can bring stability in HCL P/E multiples and help re-rating. Raise TP by 19% Rs730/sh ( 15.5x June22E EPS vs 14x June22E EPS earlier). Maintain BUY.

2:21 PM

EXPERT COMMENT:: Rahul Gupta, Head of Research- Currency, Emkay Global on rupee vs USD

‘’Overall the trend in USD/INR spot has been bearish, breaching the psychological level of 75 on weak dollar and risk-on mood. In the past, the USD/INR spot has not been able to break the crucial support of 74.50 on likely RBI buying and had bounced from there. We expect 74.50 to continue to act as crucial support until the US decides on the fresh stimulus program. However, consistent trading below 74.50 will open doors for 74.20/74.25 with 75 acting as the crucial resistance.’’

2:18 PM

GLOBAL MARKET:: European indices trade in the red

2:11 PM

Credit Suisse Wealth Management India on gold prices

We continue to see the environment as gold friendly. Central banks will most likely remain dovish for longer, while the early signs of a pick-up in inflation expectations should further boost the gold demand, in our view. We remain positive on gold with 3-month and 12-month forecasts of $1,850 and $1,900, respectively.

2:09 PM

Elara Capital on sugar sector

Good rainfall and higher cane acreages this year are likely to result in higher sugar production in the upcoming season SS21. Industry estimates sugar production at 32mn tonne. Higher cane diversion toward ethanol should lower sugar production by ~1.5mn tonne as per ISMA, resulting in net sugar production of 30.5mn tonne. Domestic demand of 26.0mn tonne and exports of ~5.5mn tonne (support by higher exports subsidy) will result in closing inventory of 10.5mn tonne for SS21, which is lower by 1.0mn tonne over SS20. We retain our positive stance on the sector. Our preferred pick is Balrampur Chini.

2:07 PM

Rupee update

2:04 PM

On a roll | Matrimony.com

Shares of Matrimony.com were locked in the upper circuit limit of 20 per cent for the second straight day, at Rs 557 on the BSE on Tuesday. The stock of the country’s leading consumer Internet Company was trading higher for the fourth straight day and rallied 49 per cent during the period. READ MORE HERE

2:03 PM

Result preview :: L&T

Larsen & Toubro (L&T), is also expected to report a dismal performance for the quarter ended June 2020 when it announces its numbers on Wednesday, July 22. However, the company's services and exports businesses are expected to cushion the overall revenue decline. Key monitorables for the period under review, according to analysts, would be pick up in ordering activity, update on supply-side and labour issues and working capital cycle READ MORE HERE

2:01 PM

Index watch : NSE

2:00 PM

Markets at 2pm

(Sensex Heatmap)

1:55 PM

Market stats :: Most active stocks by volume (BSE 500)

COMPANY NAME	LATEST	CHG (%)	VALUE (Rs CR)	VOLUME
VODAFONE IDEA	8.63	3.85	64.12	74295805
M & M FIN. SERV.	153.60	10.62	99.81	6497958
SUZLON ENERGY	4.71	-4.85	2.10	4454186
GMR INFRA.	20.80	4.52	8.30	3988453
TV18 BROADCAST	38.35	-1.79	10.58	2759315

1:53 PM

ICICI Securities on 5paisa Capital

5Paisa has been growing its customers robustly in the last three years. The lockdown further fuelled customer addition pace and, hence, aided ADTO growth. Rise in revenue may outpace growth of higher customer acquisition cost, which would lead operating leverage to kick in, thus keeping earnings positive.

We expect PAT to grow to Rs 19 crore in FY22E. Accordingly, we expect uptick in return ratios with RoE at ~12.4% in FY22E. Continued addition of new products including launch of P2P lending platform is seen enabling higher revenue in the long run. Given ~80% of customers are new to market and over 81% are from Tier II/III locations, without long experience and steep correction in recent past, burnout ratio or leakage is to be watched.

Growth prospects stay strong though recent stock price run up prompts us to maintain HOLD. The stock is currently trading at 50.6 P/E, 4.2x revenue. We value the company at 4.5x FY22E revenue, revising target price to Rs 385

1:50 PM

Edelweiss on ICICI Pru Life

The stock offers: i) most improved pure protection revenue performance in the past four–five years (15% of FY20 APE versus ~2%); ii) distribution strengths/savings growth potential post eventual recovery; and iii) nearly complete absence of balance sheet risk. Maintain ‘BUY’ and reiterate IPru Life as our top 12-months’ sector pick; revising our target price to INR550 (INR500 earlier, multiple unchanged).