Sensex sheds 305 points; metal stocks gain, Bajaj Finserv falls 5%
22 July 2019
Market at close: Benchmark indices reported third straight session loss on July 22 but ended off day's low with Nifty below 11,350 level.
At close, the Sensex was down 305.88 points at 38,031.13, while Nifty was down 73.10 points at 11, 346.20. About 816 shares have advanced, 1680 shares declined, and 155 shares are unchanged.
Bajaj Finserv, HDFC, Kotak Mahindra Bank, HDFC Bank and Eicher Motors were among major losers on the Nifty, while gainers were Yes Bank, Vedanta, Hindalco Industries, Zee Entertainment and Indiabulls Housing.
Among sectors, Banks and FMCG indices ended 1 percent lower, while buying seen in the metal, pharma, energy, IT and auto. On the other hand, midcap index was down 0.6 percent, while smallcap index shed 1%.
Indices recover, Nifty around 11,350:
Benchmark indices are recovered from the day's low with Nifty hovering around 11350 level.
At 14:29 hrs IST, the Sensex is down 312.29 points or 0.81% at 38024.72, and the Nifty down 77.40 points or 0.68% at 11,341.90. About 650 shares have advanced, 1705 shares declined, and 130 shares are unchanged.
Srikalahasthi Pipes Q1:
Net profit rose 93% at Rs 33.4 crore against Rs 17.3 crore, revenue was up 14.5% at Rs 361 crore versus Rs 315 crore, YoY.
EBITDA was at Rs 57.2 crore versus Rs 25.7 crore and margin was at 15.8% versus 8.2%, YoY.
OBC reports profit in Q1:
Oriental Bank of Commerce (OBC) has turned profitable in the quarter ended June 2019 (Q1FY20) as the company posted net profit of Rs 112.7 crore on the back of better asset quality and less provisions.
The company had posted a loss of Rs 393.2 crore in a year ago period.
Its gross NPA stood at 12.56% against 12.66%, while net NPA was at 5.91% versus 5.93%, QoQ.
Stellar Earnings Performance by Hindustan Media Ventures
Hindustan Media Ventures shares rallied 13 percent after company reported a three-fold increase in net profit at Rs 39.7 crore in June quarter against Rs 13.2 crore in year-ago, driven by other income and operating income.
However, revenue slipped 3.8 percent to Rs 218 crore against Rs 226.6 crore YoY.
Other income jumped sharply to Rs 21.7 crore against Rs 8.1 crore and EBITDA increased 78.5 percent to Rs 34.6 crore versus Rs 19.4 crore YoY.
Buzzing: Mcnally Bharat Engineering rose 2 percent on July 22 after company has received one order from NLC India, relating to work of formation of internal & peripheral roads and construction of culverts located at Talabira R&R colony at Khinda of Odisha worth Rs 10,43,86,130 including GST.
Market Update: Benchmark indices are trading lower but off day's low with Nifty hovering around 11,350 level.
The Sensex is down 284.78 points at 38,052.23, while the Nifty is down 73.80 points at 11,345.50. About 604 shares have advanced, 1453 shares declined, and 104 shares are unchanged.
Rupee Update: The Indian rupee has extended the morning losses and trading lower by 19 paise at 68.99 per dollar versus Friday's close 68.80.
Brokerages bullish on Dabur after strong Q1 growth
Shares of Dabur India gained nearly 2 percent intraday as global brokerages remained bullish on the stock, citing strong earnings growth though management commentary was cautious about demand outlook ahead.
The brokerages expect the stock to return 10-22 percent over a period of one year.
Nifty Around 11,350:
Benchmark indices extended losses for third consecutive session with the Sensex falling 273.84 points to 38,063.17 and the Nifty declining 70.30 points to 11,349 amid asset quality concerns.
More than two shares declined for every share rising on the BSE.
Kotak Mahindra Bank, United Spirits, Lakshmi Machine Works, Dewan Housing Finance Corporation, Oriental Bank of Commerce, Can Fin Homes, Hindustan Media Ventures, TVS Motor Company, Aptech, ICICI Securities, Just Dial, GlaxoSmithKline Pharmaceuticals, Just Dial, Wendt (India), Cupid, Mastek, Coromandel International, Allsec Technologies and Srikalahasthi Pipes will announce their June quarter earnings today.
HDFC Bank Falls Nearly 3%
Brokerages retained their positive stance on the stock on strong operating performance and expect stock to return 14-16 percent over a period of one year, but they concerned about moderation in loan growth (due to slowdown in auto & retail segment) and hike in provisions related unsecured book & NBFC/HFC accounts.
Market Opens: It is a weak start for the market on Monday with Nifty falls below the important level of 11,400.
At 09:17 hrs IST, the Sensex is down 197.95 points or 0.52% at 38139.06, and the Nifty down 56.50 points or 0.49% at 11362.80.
Vedanta, RIL, Tata Motors, Maruti Suzuki, ONGC, Tata Steel, Eicher Motors are among major gainers on the indices, while on the other hand losers are HDFC Bank, Bajaj Finance, Cipla, Adani Port, Titan, ICICI Bank, Bajaj Auto, Bajaj Finserv, Amara Raja, Interglobe Aviation, ICICI Lombard and Future Lifestyle.
Among the sectors, except metal all other indices are trading lower led by bank, pharma, infra, FMCG and IT.
Alembic Pharma gets USFDA approval: The company has received approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) Pregabalin Capsules, 25 mg, 50 mg, 75 mg, 100 mg, 150 mg, 200 mg, 225 mg, and 300 mg.
Rupee Opens: The Indian rupee slipped in the early trade on Monday. It has opened lower by 10 paise at 68.90 per dollar versus Friday's close 68.80.
Market at pre-open: Benchmark indices are trading flat to positive in the pre-opening session with Sensex up over 100 points.
At 09:02 hrs IST, the Sensex is up 123.16 points or 0.32% at 38460.17, and the Nifty down 2.50 points or 0.02% at 11416.80.
Market Headstart: Nifty likely to open lower; Grasim, Adani Ports top sell ideas
Trends on SGX Nifty indicate a flat-to-negative opening for the broader index in India, a fall of 29 points or 0.26 percent. Nifty futures were trading around 11,400-level on the Singaporean Exchange.
Kotak Institutional Equities on Reliance Industries
Maintain sell call, target at Rs 1,100 per share
Q1 results were marked by accounting adjustments
Morgan Stanley on HDFC Bank
Maintain overweight call
Core PPoP 2% above our estimate, helped by strong NII
Loan growth moderation was broad-based, led by corp banking
Jefferies on HDFC Bank
Retain buy call, target At Rs 2,755 per share
Retail loan growth has slowed down for two quarters
Credit Suisse on IndiGo
Outperform rating, target at Rs 1,900 per share
Co maintained its guidance of 30% capacity growth, with focus on international
It targets to buy some planes by cash
Morgan Stanley on IndiGo
Overweight call, target at Rs 2,132 per share
Q1 revenue up 45% YoY driven by RPK growth of 30% YoY
Yields up 13% YoY vs our estimate of 6.5% growth
Kotak Institutional Equities on RBL Bank
Upgrade to reduce from sell, target cut to Rs 500 from Rs 560 per share
Reported a solid quarter on earnings but raised concerns on 2% of loanS
Ambit on RBL Bank
Maintain sell call, target cut to Rs 393 from Rs 426 per share
Asset quality deterioration begins
Cut FY20-21 estimates by 25%
Citi on RBL Bank
Maintain neutral call, target cut to Rs 550 from Rs 725 per share
Cut earnings by 17%/12% for FY20/21
Morgan Stanley on Dabur
Remain overweight, target at Rs 470 per share
Both domestic & international businesses have performed above expectations
Jefferies on Dabur
Maintain buy call, target at Rs 480 per share
Strong Q1 with positive surprise on domestic volume growth At 9.6%
EBITDA margin ahead of estimates
HSBC on Dabur
Retain buy call, target raised to Rs 480 from Rs 460 per share
Volume growth of 9.6% & EBITDA significantly ahead of consensus
CLSA on Dabur
Retain buy call, target at Rs 515 per share
Medium-term strategy continues to be impressive
Near-term concerns however prompt us to take EPS down by 2-4%
Citi on Dabur
Buy call, target at Rs 485 per share
Solid all-round beat; management optimism measured
Business should deliver decent growth despite a challenging macro
BNP Paribas on Dabur
Maintain buy call, target at Rs 465 per share
Expect rural consumption to recover in H2
Kotak Institutional Equities on Dabur
Retain reduce call, target at Rs 390 per share
Impressive margin performance & good topline growth
Like the strategy of greater focus on power brands
Stock expensive at 31x FY21e EV/EBITDA
Ambit on Bandhan Bank
Reiterate sell call, target at Rs 309 per share
Microfinance AUM growth of 40% much higher than customer growth of 20% YoY
Dollar Update: The dollar held recent gains on Monday as investors tempered some of their expectations for deep US interest rate cuts this month and heightened Middle East tensions supported safe-haven assets.
US markets end lower on Friday: Wall Street’s main indexes fell on Friday following a report that the Federal Reserve plans to cut interest rates by only a quarter-percentage point at the end of the month.
Crude Update: Oil prices rose on Monday amid high tensions in the Middle East after a British tanker was seized by the Iranian military at the end of last week.
SGX Nifty: Trends on SGX Nifty indicate a negative opening for the broader indices in India, a fall of 36 points or 0.31 percent. Nifty futures were trading around 11,393.50-level on the Singaporean Exchange.
Asian markets trade lower?: Asia stocks eased on Monday as investors reduced expectations of an aggressive interest rate cut by the Federal Reserve, while heightened Middle East tensions following an Iranian seizure of a British tanker lifted crude oil prices.