Sensex flat; pharma stocks gain, Tata Motors slips 4%

CNBC

Market Close: Benchmark indices ended the volatile day on flat note with Nifty finished the July F&O series below 11,300 mark.

At close, the Sensex was down 16.67 points at 37830.98, while Nifty was down 9.50 points at 11261.80. About 1059 shares have advanced, 1342 shares declined, and 171 shares are unchanged. 
Tata Motors, Bajaj Finance, Bajaj Finserv, Coal India and JSW Steel were among major losers, while gainers were Vedanta, Cipla, Zee Entertainment, Sun Pharma and IndusInd Bank.
Among sectors, metal, infra, auto and energy witnessed selling, while buying was seen in the IT and pharma. BSE Midcap index ended 0.5 percent higher, while BSE smallcap ended flat.
Rupee Update: The Indian rupee is trading flat at 68.98 per dollar on Thursday versus previous close 68.98.
Bajaj Finance Q1 Profit Jumps 43%
Bajaj Finance's June quarter (Q1) consolidated net profit missed analyst expectations due to higher provisions, rising 43 percent year-on-year to Rs 1,195 crore, the highest ever.
Net interest income during the quarter grew by 43 percent, higher-than-street-estimates, to Rs 3,695 crore compared to year-ago, with a massive 41 percent increase YoY in consolidated asset under management at Rs 1.29 lakh crore, the non-banking finance company said in its BSE filing.
Buzzing: Shriram Transport Finance Corporation shares rallied 9 percent on July 25 as its June quarter earnings beat analyst expectations despite slowdown and election period.
Market Update: Benchmark indices erased most of its gains with Nifty below 11,300 level ahead of July F&O expiry.
The Sensex is up 26.02 points at 37873.67, and the Nifty is up 7 points at 11278.30. About 974 shares have advanced, 1029 shares declined, and 118 shares are unchanged. 
Canara Bank slips 4%: Shares of Canara Bank shed 4 percent on July 25 as research house Morgan Stanley remained underweight on stock with a target of Rs 220 per share.
The company reported a 17 percent year-on-year growth in June quarter profit on lower provisions, with improvement in asset quality on sequentially.
Sensex off day's high:
Benchmark indices were off their day's high on profit booking at higher levels which indicated that due to weak market sentiment, traders might have used 'sell on rise' strategy.
The BSE Sensex was up 178.29 points at 38,025.94 and the Nifty50 gained 50.20 points at 11,321.50.
Bharti Infratel Shares Rally 6%
Shares of Bharti Infratel rallied nearly 6 percent intraday as Morgan Stanley retained positive stance on the stock after strong Q1 show.
While having an overweight call on the stock with a target price at Rs 323 (implying a 22 percent potential upside from current levels), the global brokerage house said revenue in Q1FY20 was in-line with its estimates.
The investment firm further said tenancy movement was positive this quarter with fewer tenancy deletions, but EBITDA continued to be soft even though rental revenues increased marginally.
Crude Update: Oil ticked higher early on Thursday after falling in the previous session as more signs of slowing global growth added to demand concerns, with Middle East tensions underpinning prices.
Market Opens: It is a positive start for the benchmark indices on July 25 with Nifty around 11,300.
At 09:20 hrs IST, the Sensex is up 149.11 points or 0.39% at 37996.76, and the Nifty up 44.20 points or 0.39% at 11315.50. About 505 shares have advanced, 353 shares declined, and 42 shares are unchanged.
ICICI Prudential, SAIL, Zee Entertainment, Cadila Healthcare, Sagar Cement, Bharti Infratel, Kansai Nerolac, Berger Paints , Cholamandalam Investment are among major gainers on the indices, while losers are IDFC First Bank, Syndicate Bank, Asian Paints Syngene, Biocon and Oberio Realty.
Rupee Opens: The Indian rupee opened flat at 68.98 per dollar on Thursday versus previous close 68.98.
Market at pre-open: Indian indices are trading flat with positive bias in the pre-opening session.
At 09:01 hrs IST, the Sensex is up 62.62 points or 0.17% at 37910.27, and the Nifty up 20.70 points or 0.18% at 11292.
CLSA on Jubilant Food 
Buy rating, target price cut from Rs 1,500 to Rs 1,400
Cut CY20-21 EPS by 8-14%, factoring in Ind-AS 116 impact 
Stock would be range-bound until SSG picks up
Morgan Stanley on Jubliant Food
Overweight; target price at Rs 1,525 
Q1FY20 underlying performance better vs headline
Adjusting for IND-AS impact, phasing of ad expenses relatively strong
Management commentary remains upbeat
Macquarie on Jubilant Food
Maintain outperformer; target price Rs 1474 from Rs 1636
LFL growth for non-split stores at 5.8%
Morgan Stanley on Jubliant Foods 
Overweight; target price at Rs 1,525 
Q1FY20 underlying performance better vs headline
Adjusting for IND-AS impact, phasing of ad expenses relatively strong
Management commentary remains upbeat
Morgan Stanley on Asian Paints 
Strong Q1 volume growth in domestic decorative paint business amidst weak macro environment
Maintain overweight; target price at Rs 1,600
CLSA on Asian Paints 
Sell rating, target price at Rs 1,300 from Rs 1,285 
Asian Paints’ near-15% volume growth a big positive surprise despite sluggish auto trend
Gross margin expansion was another positive
Morgan Stanley on Shriram Transport 
Overweight; target price at Rs 1,350 
PAT marginally better than expectations
AUM growth moderated, NIM see some compression as largely expected
Morgan Stanley on Shriram
Overweight call, target at Rs 1,350
In-line results, AUM growth at 5.8% YoY lowest in 10 quarters
PAT was marginally better than expectations
Morgan Stanley on Canara Bank 
Underweight; target price at Rs 220 
Weaker PPoP & asset quality in Q1FY20
Q1FY20 PAT Rs 300 crore vs estimate of Rs 600 crore
Higher fees & lower than expected other operating expenses key positives
HSBC on Steel 
Believe there could be more disappointment for sector during q1 results
Steel price recovery remains elusive on weak demand in domestic mkt 
Steel price recovery remains elusive on weak demand in export mkt 
Hopes anchored on more government support for recovery in 2H
Maintain hold on Tata Steel & JSTL
Morgan Stanley on Bharti Infra
Overweight call; target price at Rs 323 
F1Q20 revenue in-line, EBITDA is weak 
Tenancy movement positive this quarter with fewer tenancy deletions
Morgan Stanley on IDFC First Bank 
Underweight, target price at Rs 30 
Q1FY20 initial update: third consecutive quarterly loss, driven by high provisions
Provisions taken to extent of 75% of total exposure towards 2 financial services accounts
Morgan Stanley on ICICI Pru Life 
Maintain overweight; target price Rs 450 
Expect premium growth to recover through year with help from favorable base
Asian markets trade cautious: Asian shares were cautious on Thursday, shrugging off a tech-fuelled rally on Wall Street while the euro hovered near two-month lows as soft economic data bolstered expectations of rate cuts in Europe.
Wall Street ends higher: Tech companies led the S&P 500 and the Nasdaq to record closing highs on Wednesday but the Dow lost ground on downbeat earnings, while the euro dropped to a two-month low, pressured by soft economic data.
SGX Nifty: Trends on SGX Nifty indicate a positive opening for the broader indices in India, a gain of 21.50 points or 0.19 percent. Nifty futures were trading around 11,294-level on the Singaporean Exchange.