MARKET WRAP: RIL, HDFC Bank help Sensex settle 466 pts higher; pharma slips
All that happened in the markets today
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NSE's Nifty ended at 10,764, up 156 points or 1.47 per cent (Photo: Kamlesh Pednekar)
Indian stock market ended with around 1.5 per cent gains on Monday amid across-the-board buying. Strong global cues and encouraging business update by certain companies for Q1FY21 boosted investor sentiment. For instance, HDFC Bank ended around 3 per cent higher after it reported strong loan growth of 21 per cent year-on-year (YoY) at Rs 1.04 trillion for the first quarter of the financial year 2020-21 (Q1FY21).
The S&P BSE Sensex gained 466 points or 1.29 per cent to settle at 36,487 levels. Reliance Industries (RIL), HDFC Bank, TCS, Bajaj Finance, and M&M were the major contributors to the index's gains. NSE's Nifty ended at 10,764, up 156 points or 1.47 per cent. India VIX continued to decline and ended 2.7 per cent lower at 25.06 levels.
RIL hit a fresh record high of Rs 1,858 during the day before settling at Rs 1,851.40, up over 3.5 per cent on the BSE. READ MORE
Broader market, too, participated in the rally. The S&P BSE MidCap index gained 1.27 per cent to 13,458 levels while the S&P BSE SmallCap rallied 1.3 per cent to 12,767 points.
On the sectoral front, barring Nifty Pharma, all the other indices on the NSE ended in the green. Nifty Auto climbed 2.88 per cent and the Nifty Bank rose 1.59 per cent. Nifty Realty ended over 3 per cent higher.
BUZZING STOCKS
Real estate developer Sobha ended nearly 5 per cent higher after the company said it managed to clock 70 per cent of sales volume during Q1 2021 as compared to Q4 2020.
National Fertilizers (NFL) hit a 20 per cent upper circuit of Rs 36.95 after it said it achieved highest-ever fertilizer sale of 12.85 lakh metric tonnes (LMT) in Q1 June 2020. This is about 21.5 per cent higher than the sales of 10.57 LMT reported in Q1 June 2019.
Shares of Prism Johnson were frozen at 10 per cent upper circuit band of Rs 48.50 on the BSE on Monday after the company informed that its board has approved divestment of its entire holding of 51 per cent in Raheja QBE General Insurance Company (RQBE).
On the flip side, Marico ended around 2 per cent lower 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.
Global markets
On the sectoral front, barring Nifty Pharma, all the other indices on the NSE ended in the green. Nifty Auto climbed 2.88 per cent and the Nifty Bank rose 1.59 per cent. Nifty Realty ended over 3 per cent higher.
BUZZING STOCKS
Real estate developer Sobha ended nearly 5 per cent higher after the company said it managed to clock 70 per cent of sales volume during Q1 2021 as compared to Q4 2020.
National Fertilizers (NFL) hit a 20 per cent upper circuit of Rs 36.95 after it said it achieved highest-ever fertilizer sale of 12.85 lakh metric tonnes (LMT) in Q1 June 2020. This is about 21.5 per cent higher than the sales of 10.57 LMT reported in Q1 June 2019.
Shares of Prism Johnson were frozen at 10 per cent upper circuit band of Rs 48.50 on the BSE on Monday after the company informed that its board has approved divestment of its entire holding of 51 per cent in Raheja QBE General Insurance Company (RQBE).
On the flip side, Marico ended around 2 per cent lower 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.
Global markets
Global stock markets rallied to four-week highs on Monday as investors counted on a revival in Chinese activity to boost global growth, even as surging coronavirus cases delayed business re-openings across the United States.
MSCI’s All-Country World Index, which tracks shares across 49 countries, rose 0.7% to its highest since June 6 after the start of European trading.
In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 1.6 per cent to its highest since February, with the bullish sentiment spilling into other markets.
E-Mini futures for the S&P 500 firmed 1.2 per cent.
In commodities, oil prices rose, supported by tighter supplies and a string of data expected to show economic recovery across the globe.
Brent crude was up 73 cents, or 1.7 per cent, to $43.53 per barrel while US West Texas Intermediate (WTI) crude was up 28 cents, or 0.7 per cent, at $40.93, at the time of writing of this report.
(With inputs from Reuters)
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.
Topics : Coronavirus Markets HDFC Bank ICICI Bank MARKET WRAP
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First Published: Jul 06 2020 | 7:23 AM IST
