Sensex down 196 points; Metals, auto worst hit
29 July 2019
Market Close: Indian indices ended on negative note but off day's low on July 29 with Nifty finished below 11,200 level.
At close, the Sensex was down 196.42 points at 37,686.37, while Nifty was down 95.10 points at 11,189.20. About 797 shares have advanced, 1614 shares declined, and 124 shares are unchanged.
Indiabulls Housing, Grasim Industries, Tata Motors, Vedanta and Bharti Infratel were among major losers on the Nifty, while gainers were ICICI Bank, HCL Tech, IndusInd Bank, TCS and Infosys.
Except IT all other sectoral indices ended in the red led by auto, metal, infra, pharma, FMCG and energy. BSE Midcap index shed 0.7 percent, while BSE Smallcap index fell 1 percent.
Buzzing: The share price of KPR Mill gains 1.5 percent on July 29 as company posted 13.4 percent jump in its consolidated net profit to Rs 92.2 crore versus Rs 81.3 crore, while revenue was flat at Rs 901 crore. EBITDA of the company up 16.8 percent at Rs 176.1 crore against Rs 150.7 crore, YoY.
Sandhar Tech enters in JV with Hanshin Corp:
Sandhar Technologies signed a joint venture agreement with Hanshin Corporation (Republic of Korea).
The joint venture is being established for manufacturing and selling, futuristic high end data cables for the automotive industry in India which would include Radio Cable, AV/NAVI Cable, GPS/DMB Cable, USB Cable, AVM Cable and others for the four-wheeler segment.
Supreme Industries Q1:
Supreme Industries has reported consolidated net profit fell 36.1 percent at Rs 87.1 crore against Rs 136.4 crore, revenue was up 6.8% at Rs 1,436.8 crore versus Rs 1,345.7 crore, YoY.
The company has an exceptional gain of Rs 55.9 crore in Q1FY19.
EBITDA fell 9.9% at Rs 167.3 crore and margin at 11.7%.
SBI reduces interest rate on deposits across all maturities:
State Bank of India (SBI), in view of the falling interest rate scenario and surplus liquidity, realigns its interest rate on Retail Term Deposits (less than Rs 2 crore) and bulk term deposits (Rs 2 crore & above) w.e.f. 01/08/2019.
For time deposits with longer tenors, there is a reduction upto 20 bps in the retail segment and 35 bps in the bulk segment.
Interest rates have been slashed by 50-75 bps for time deposits with shorter tenors, i.e. upto 179 days.
Indian indices are trading at day's low with Nifty slipped below 11,200, while Sensex declined over 300 points dragged by auto, metal and pharma stocks.
The Sensex is down 316.28 points at 37,566.51, while Nifty is down 118.10 points at 11,166.20. About 641 shares have advanced, 1369 shares declined, and 96 shares are unchanged.
Vodafone Idea plunges 26%:
Share price of Vodafone Idea touched 52-week low of Rs 7.30, down 26 percent on July 29 as company reported poor numbers for the quarter ended June 2019.
The company has posted net loss at Rs 4,873.9 crore in the Q1FY20 against loss of Rs 4,881.9 crore in the quarter ended March 2019.
Goldman Sachs on Maruti Suzuki
Maintain buy, target at Rs 7210 per share
Q1 results above estimates on cost control; buy on weakness
See EBITDA margin to have bottomed out as we expect better volume hereon
Citi on Maruti Suzuki
Buy call on the stock with target at Rs 7,400 per share
Q1 results a modest beat but near-term outlook gloomy
Co would likely outperform given sustained market share & balance sheet strength
IDFC Securities on Maruti Suzuki
Outperform rating with target at Rs 6,400 per share
Demand environment continues to remain weak with no overt signs of a recovery
Expect pressure on margin to continue in the near-term
CLSA on Maruti Suzuki
Maintain buy call with target at Rs 7,400 per share
Maruti reported weak q1 results as volume fell 18% YoY
Believe Maruti is a better way to play a potential demand recovery
UBS on Maruti Suzuki
Sell call with target at Rs 5800 per share
Q1 a consensus miss amid a tough environment
EBITDA below consensus, adjusting for estimated AS-116 impact
CIMB on Maruti Suzuki
Reiterate add rating with target at Rs 7,776 per share
Q1 EPS fell 20% QoQ In-line with consensus but 26% above estimate
Key risks are fuel price spike impacting car industry demand
Kotak Institutional Equities on Escorts
Maintain buy call; target cut to Rs 910 from Rs 1,000 per share
Co reported a 23% YoY decline in EBITDA mainly led by decline in tractor volume
Believe the tractor segment has least headwinds related to cost increase
Credit Suisse on Escorts
Outperform rating with target at Rs 920 per share
Q1 headline numbers were broadly in-line with estimates
Nomura on Jubilant Life
Maintain buy call on the stock; raise target to Rs 661 from Rs 660 per share
Q1 EBITDA up 21% QoQ but 1% below our estimate
UBS on Bajaj Auto
Maintain sell, target at Rs 2,400
Q1FY20 in-line but market share plateauing despite aggressive pricing
High inventory adds to downside risk
IDFC Securities on Bajaj Auto
Maintain underperform, target at Rs 2,400 per share
Company’s strategy of cutting product prices to gain market share may benefit it over long term
Key upside would be a stronger-than-expected export market growth
Kotak Institutional Equities on Bajaj Auto
Maintain reduce, target cut to Rs 2,500 from Rs 2,700 per share
Slowdown led by a weak rural economy & sharp rise in regulatory costs
Nomura on Bajaj Auto
Maintain neutral; target at Rs 2,836 per share
Q1 results in-line; growth slowing down
Margin headwinds remain from adverse mix & regulatory cost pressures
Credit Suisse on Bajaj Auto
Underperform, target at Rs 2,330 per share
Increasing competitive intensity in exports could jeopardise company’s profit
Cut FY20/FY21E EPS by 5%/8%, factoring in the further cautious outlook
Morgan Stanley on Bajaj Auto
Remain equal-weight with target at Rs 2,646 per share
Co Posted an in-line quarter
EVs & emission regime change are key risks to the business
CLSA on Bajaj Auto
Fine tune our estimates & retain sell call with target at Rs 2,275 per share
Muted Q1 but better than estimates
See risk to 2-wheeler exports given the weakening global economic outlook
Jefferies on Bajaj Auto
Maintain underperform rating with target at Rs 2,430 per share
Management expects negative growth in domestic 2-wheeler industry for short-term
Adjusting for A/Cing changes, Q1 revenue was ahead, EBITDA in-line & margin below estimates
CLSA on ICICI Bank
Co is a high-conviction buy with target at Rs 530 per share
Q1 PAT tad below estimates due to higher provisions & higher tax
Trim earnings but see an earnings turnaround ahead & RoE rising to 15-16%
Jefferies on ICICI Bank
Retain buy call on the stock; raise target to Rs 480 from Rs 455 per share
Steady Q1 with core PPoP driven by better loan growth & steady margin
Fees were negatively impacted by lower mutual fund distribution fee
Expect improvement in core op profit; standalone RoE likely to be over 16% by FY21
Jefferies on JSW Steel
Retain underperform; cut target to Rs 216 from Rs 233 per share
Cut our FY20-21e EBITDA by 2-3%
Q1 EBITDA missed our estimate; margin was in-line, but volume disappointed
CLSA on JSW Steel
Cut our FY20-21 EPS by 4-5%
Retain sell rating; cut target to Rs 200 from Rs 225 per share
CLSA on autos
Believe govt’s proposal of higher registration fee is unlikely to boost auto demand
Believe regulatory costs are adding up for the Indian auto industry
Entered 2019 with a cautious view on autos & see few reasons to change it
Have sell ratings on 70% of our auto coverage; recommend underweight stance on sector
Gold Update: Gold prices gained on July 29 ahead of this week's US Federal Reserve monetary policy meeting, which is expected to lead to a cut in US interest rates.
Dollar Update: The dollar held firm on Monday, staying near a two-month high against a basket of currencies after better-than-expected U.S. GDP data last week boosted its yield attraction against rival currencies.
Market Opens: It is a flat start for the benchmark indices on July 29 amid mixed global cues with Nifty around 11,300.
At 09:16 hrs IST, the Sensex is up 43.38 points or 0.11% at 37926.17, and the Nifty up 6.40 points or 0.06% at 11290.70. About 346 shares have advanced, 242 shares declined, and 56 shares are unchanged.
ICICI Bank, Axis Bank, Bajaj Finance, TCS, HCL Tech are some of major gainers on the indices, while losers are Vedanta, Escorts, Bajaj Auto, Indiabulls Housing, Eicher Motors, Hero Motocorp, JSW Steel, Tata Motors, Kotak Mahindra Bank, Zee, NTPC and HDFC Bank.
Among sectors, except FMCG and IT all other indices are trading lower led by the auto, metal, pharma, energy and infra.
Market at pre-open: Indian indices are trading flat with positive bias in the pre-opening session on July 29.
At 09:01 hrs IST, the Sensex is up 139.16 points or 0.37% at 38021.95, and the Nifty up 10.90 points or 0.10% at 11295.20.
Crude Update: Oil prices fell on Monday after Iran described emergency talks on a multi-party nuclear agreement with a group of signatories as “constructive”, suggesting an easing of tensions in the Middle East.
Wall Street ends higher on Friday: Robust earnings from Alphabet and Starbucks pushed the S&P 500 and Nasdaq indexes to record highs on Friday, with support from data showing US economic growth slowed less than expected in the second quarter.
Asian markets trade lower: Asian shares got off to a cautious start on Monday as markets count down to a likely cut in US interest rates this week with much riding on whether or not the Federal Reserve signals yet more are in the pipeline.
SGX Nifty: Trends on SGX Nifty indicate a flat opening for the broader indices in India, a fall of 11 points or 0.10 percent. Nifty futures were trading around 11,317.50-level on the Singaporean Exchange.