Sensex up 50 points; Yes Bank gains 9%, auto stocks jump

26 Jul 2019

Market Close: The benchmark indices ended on positive note on July 26 breaking six consecutive day fall with Nifty finished near 11,300.

At close, the Sensex was up 51.81 points at 37,882.79, while Nifty was up 32.10 points at 11,284.30. About 1296 shares have advanced, 1173 shares declined, and 161 shares are unchanged.

Yes Bank, Bajaj Finance, Bajaj Finserv, Eicher Motors and Hero Motocorp were among major gainers on the Nifty, while losers were Vedanta, IOC, HDFC, Tech Mahindra and Reliance Industries.

Among sectors, except energy and IT, all other indices are ended on the higher side led by auto (up 2 percent), PSU bank (up 1.1 percent), pharma (up 1 percent) followed by FMCG, infra and metal. BSE midcap and smallcap indices ended with marginal gains.

Maruti Suzuki Q1 profit plunges 27%

Maruti Suzuki India's June quarter standalone profit fell sharply by 27.3 percent year-on-year to Rs 1,435.5 crore despite three-fold jump in other income, dragged by lower volumes.

Revenue during the quarter degrew by 12.2 percent to Rs 19,719.8 crore compared to year-ago, with 18 percent YoY fall in sales volumes. The company sold 4.01 lakh units in June quarter.

Other income increased to Rs 836.4 crore in Q1, against Rs 271.8 crore in year-ago period.

PNB reports profit in June quarter:

Punjab National Bank (PNB) has reported profit for the quarter ended June 2019 (Q1FY20) despite marginal rise in the non-performing assets.

The company has posted a net profit of Rs 1,018.6 crore against loss of Rs 940 crore in a year ago period.

Its net NPA was at 7.17% against 6.56%, while gross NPA at 16.49% against 15.50%, QoQ.

Indoco Remedies gets EIR from USFDA:

Shares of Indoco Remedies surged nearly 20 percent intraday July 26 as company received EIR from USFDA.

The company has received the establishment inspection report (EIR) from the US Food and Drug Administration (USFDA) for their sterile facility (Plant II) and solid dosages facility (Plant III) at Verna, Goa.

Bajaj Auto Q1 result:

Two-and-three-wheeler maker Bajaj Auto's June quarter (Q1) earnings met analyst expectations as the profit grew one percent compared to the year-ago period. The profit was driven by slightly better-than-expected revenue growth amid subdued industry environment.

Profit during the quarter increased 0.94 percent to Rs 1,125.7 crore from Rs 1,115.23 crore in the corresponding quarter of the previous year.

Revenue from operations rose 3.9 percent year-on-year to Rs 7,755.82 crore despite tepid volume growth of 2 percent YoY, led by healthy realisation on price hike during the quarter

Yes Bank acquires 18.55% stake in Cox & Kings:

Yes Bank acquired 32,750,139 equity shares of Cox & Kings constituting 18.55% of the post-issue paid-up share capital on invocation of pledge.

Also, the bank acquired 34,080 equity shares (30% of the post-issue paid-up share capital) of an unlisted company, Ezeego One Travel & Tours.

Bank of Baroda gains more than 4 percent:

Shares of Bank of Baroda rallied more than 4 percent intraday on July 26 after global brokerage houses remained bullish on the stock, despite cutting the price target, after the amalgamated lender turned profitable in June quarter (Q1).

According to Jefferies, the bank reported decent pre-provision operating profit and NIM/NII, though asset quality disappointed in Q1. The brokerage gas a buy call on the stock.

The public sector lender turned profitable in the June quarter after reporting net profit at Rs 710 crore post amalgamation against loss of Rs 49 crore in the year-ago quarter

Jefferies maintains buy on Bajaj Finance post Q1 nos:

Share price of Bajaj Finance rose 6.5 percent intraday on July 26 as research house Jefferies has maintained buy rating on the stock after a better June quarter numbers.

On July 25 the company has reported June quarter consolidated net profit at Rs 1,195 crore, a jump of 43 percent against consolidated profit of Rs 835.9 crore in the last year.

Research house Jefferies has maintained buy rating with a target of Rs 3,600 per share

Pre Provision Operating Profit (PPoP) is ahead of estimate, but provision surprised negatively, meanwhile the asset quality is stable on QoQ.

CLSA cuts target on Tata Motors

Shares of Tata Motors rebounded nearly 3 percent intraday after hitting a fresh more than nine-year low in early trade on disappointing show in June quarter (Q1). Global brokerage houses are mixed in their opinion with CLSA cutting price target.

The stock touched an intraday low of Rs 138.15, the lowest level since February 2010, but rebounded to day's high of Rs 148.25 which could be because of positive commentary by management. It was quoting at Rs 147.90, up Rs 3.55, or 2.46 percent on the BSE.

CLSA has a sell call on the stock and slashed price target to Rs 120 from Rs 140 per share after cutting FY20-21 EPS estimates by 9-31 percent due to company reported worst pre-exceptional loss-before tax in a decade.

Mcnally Bharat Engineering bags order: The company has received one order from Krishi Bikash Shiipa Kendra, A unit of National, 20-point programme implementation, registered and approved by Government of India, relating to work of construction of boundary wall with fencing for SOOMW Solar Power Plant in jharkhand, worth Rs 8 crore.

Buzzing: Share price of TRF gained 2.5 percent Friday after company approved the proposal for divestment of its entire stake in its step down subsidiary.

Market Update: Benchmark indices are trading lower with Nifty below 11,250 level.

At 10:00 hrs IST, the Sensex is down 106.84 points at 37724.14, while the Nifty is down 34 points at 11218.20. About 658 shares have advanced, 815 shares declined, and 80 shares are unchanged.

Buzzing: Shares of Biocon gained nearly 6% on July 26 after company reported robust numbers for the quarter ended June 2019 (Q1FY20).

Crude Update: Oil prices fell on Friday after a Reuters poll showed global economic growth is likely to slow further amid the U.S.-China trade war, although losses were limited by tensions in the Middle East.

Morgan Stanley on Tata Motors

Maintain equal-weight, target at Rs 192 per share

Q1 results missed our estimates as JLR margin dipped

Negative cash flow drove net debt higher

CLSA on Tata Motors

Sell call, target cut to Rs 120 from Rs 140 per share

Reported worst pre-exceptional loss-before tax in a decade

JLR & India businesses showed lower volumes & sharp margin contraction YoY

Margin pressure has been more intense than expected

Reduce FY20-21 EPS estimates by 9-31%

Jefferies on Tata Motors

Buy rating, target at Rs 200 per share

JLR's Q1 EBITDA/EBIT disappointed even against muted expectations

Higher employee & warranty costs more than offset better gross margin

Losses widened for Chery-JLR

Jefferies on Bank of Baroda

Buy rating, target cut to Rs 130 from Rs 150 per share

Reported decent pre-provision operating profit

NIM/NII & fee were a beat, offset by elevated costs

Asset quality disappointed

Credit Suisse on Bank of Baroda

Upgrade to neutral, target at Rs 115 per share

Expect profitability to remain muted due to the merger

Cut EPS by 3-7% on weaker profitability

CLSA on Bank of Baroda

Buy rating, target cut to Rs 135 from Rs 150 per share

Merger dilution higher than expected; earnings recovery from FY21

Key negative was higher slippages mostly due to SME & agri loans

Jefferies on Bajaj Finance

Buy Rating, target At Rs 3,600 per share

PPoP Ahead Of Estimate, But Provision Surprised Negatively

Asset Quality Stable QoQ

Morgan Stanley on Bajaj Finance

Equal-weight call, target at Rs 2,950 per share

Cons PAT 5% below estimate of Rs 1,250 Cr

Revenue up 43% YoY, 3% ahead of estimate & operating costs

Nomura on Mphasis

Buy rating, target at Rs 1,115 per share

Q1 below expectations, co retains FY20 outlook

Miss driven by lower-than-expected growth in direct channel revenues

CLSA on Oberoi Realty

Retain buy rating, target raised to 664 from Rs 644 per share

Good Q1 but subvention scheme blockage a near-term issue

Steady execution & new launches from H2 should help drive sales

Lease business scale-up is also a longer-term positive

Morgan Stanley on Oberoi Realty

Overweight call, target at Rs 633 per share

Revenue driven by steady execution in the residential segment

CLSA on Westlife

Retain buy rating, target at Rs 450 per share

SSG & margins below our estimates; big impact of Ind-AS on profits

Co attributed lower SSG to a high base & subdued macro trends

CLSA on Shriram Transport

Sell rating, target cut to Rs 920 from Rs 960 per share

Demand trends weak; lack of clarity on new structure

Profit slightly ahead of expectations with better NII growth

Nomura on Ambuja Cements

Maintain neutral call, target at Rs 240 per share

Revenue 7% below our estimate, but 1% ahead of consensus

EBITDA 3% below our forecast, but 17% ahead of consensus

Compared to ACC, volume decline for Ambuja was steep

CLSA on Ambuja Cements

Upgrade to buy from outperform, target raised to Rs 265 from Rs 250 per share

Strong cement pricing drove EBITDA/t to a multi-quarter high

EBITDA/t higher despite an 8% decline in volumes

CITI on Ambuja Cements

Buy rating, target at Rs 290 per share

Q2 EBITDA/t at 7-yr high; pricing trumps volumes

Pricing pullback may be temporary; volumes should improve post monsoon

Strong EBITDA/t in Q2 sets a high base for H2

Market Opens: Benchmark indices opened lower on July 26 with Nifty started the August series on a weak note as it slipped below 11,250 level.

At 09:17 hrs IST, the Sensex is down 51.05 points at 37779.93, while Nifty is down 9.90 points at 11242.30. About 312 shares have advanced, 384 shares declined, and 30 shares are unchanged.

Biocon, South Indian Bank, Vedanta, Yes Bank, Indiabulls Housing, Bharti Infratel, Coal India are some of the major gainers on the indices, while losers are JSW Steel, PVR, Bajaj Finance, Tata Motors, Bajaj Finserv, IOC, Dr Reddy's, Infosys, HCL Tech and ONGC.

All the sectoral indices are trading marginally lower. Midcap and Smallcap index are also trading lower.

Rupee Opens: The Indian rupee opened lower by 8 paise at 69.12 per dollar on Friday versus Thursday's close 69.04.

Market at pre-open: Indian indices are trading flat in the pre-opening session on July 26 with Nifty below 11,250 level.

At 09:02 hrs IST, the Sensex is up 101.56 points or 0.27% at 37932.54, and the Nifty down 5.70 points or 0.05% at 11246.50.

SGX Nifty: Trends on SGX Nifty indicate a negative opening for the broader indices in India, a fall of 23 points or 0.20 percent. Nifty futures were trading around 11,278-level on the Singaporean Exchange.

Asian markets trade lower: Asian share prices opened a tad lower on Friday on mixed US earnings reports and the euro held above two-year lows struck overnight after the European Central Bank held interest rates steady, though officials said a cut was certain in September.

Wall Street falls from record high: Wall Street fell from record highs on Thursday following a flurry of downbeat quarterly results from Ford Motor and other companies and after European Central Bank chief Mario Draghi's comments disappointed investors hoping for a more dovish stance on monetary policy.