Sensex falls 289 points; PSU banks tumble 5%, Bharti Airtel up 3%
30 July 2019
Tech Mahindra Q1 net profit falls 15%:
Tech Mahindra reported a 15.3 percent fall in its Q1FY20 net profit at Rs 959 crore against Rs 1,132.5 crore in the quarter ended March 2019.
The company's rupee revenue was down 2.7 percent at Rs 8,653 crore against Rs 8,892.3 crore and dollar revenue was down 1.6 percent at $1,247.1 million against $1,267.5 million QoQ.
Earnings before interest and taxes (EBIT) fell 27.4 percent at Rs 992.8 crore, while margin was down 390 bps at 11.5 percent.
In the constant currency terms, the revenue growth was at 3.7 percent. The company's digital revenue was up 34.7 percent (YoY), while IT attrition rate was unchanged at 21 percent (QoQ).
Axis Bank Q1 numbers:
Axis Bank's June quarter (Q1) profit grew sharply by 95 percent year-on-year to Rs 1,370 crore, but provisioning and slippages remained higher. It was supported by NII, other income and operating profit.
The bank had reported a profit of Rs 701 crore in Q1FY19.
Net interest income increased 13 percent year-on-year to Rs 5,843.65 crore in the quarter ended June 2019, with 13 percent loan growth YoY.
Asset quality remained stable in Q1. Gross non-performing assets as a percentage of gross advances declined 1 basis point sequentially to 5.25 percent and net NPA also slipped 2bps to 2.04 percent during the quarter.
Market Close: Indices fell for the second consecutive day on July 30 with Nifty ended below 11,100 level on the back of selling in PSU banks, metal and auto.
At close, the Sensex was down 289.13 points at 37,397.24, while Nifty was down 103.80 points at 11,085.40. About 567 shares have advanced, 1907 shares declined, and 109 shares are unchanged.
Yes Bank, IndusInd Bank, Indiabulls Housing, Hero Motocorp and Sun Pharma were among major losers on the Nifty, while gainers were Bharti Airtel, TCS, HCL Tech, ITC and HUL.
Except IT, all other sectoral indices ended in the red led by PSU bank (down 4.9%), metal (down 3.2%), auto (down 2%), pharma (down 2%) followed by energy, FMCG and infra.
Buzzing: Shares of United Bank of India gained 5 percent on July 30 after company reported profit at Rs 105 crore in the June quarter against loss of Rs 388.7 crore in a year ago period. Net interest income (NII) up 33.4% at Rs 727.5 crore versus Rs 545.3 crore.
Indices erase gains, Nifty below 11,200:
Benchmark indices erased all its morning gains and trading flat with Nifty below 11,200.
At 11:25 hrs IST, the Sensex is up 36.90 points or 0.10% at 37723.27, and the Nifty up 2.20 points or 0.02% at 11191.40. About 663 shares have advanced, 1252 shares declined, and 99 shares are unchanged.
Dilip Buildcon Remains in Action
Company in its BSE filing said DBL Sangli Borgaon Highways Private Limited and DBL Mangalwedha Solapur Highways Private Limited, wholly owned subsidiaries, received the appointed date i.e May 23, 2019 from the National Highways Authority of India.
Dilip Buildcon Rallies Nearly 2%
Dilip Buildcon said company has been declared L-1 bidder for the project 'construction of Kharkai Dam at Icha with all control gates and its allied works including civil, mechanical (with design of gates), electrical and SCADA System under SMP in Jharkhand.
Buzzing: Shares of Bharti Airtel added nearly 4 percent on July 30 after research house Bank of America Merrill Lynch (BofAML) upgraded the stock to buy and also raised target to Rs 400 from Rs 360 per share.
Buzzing: Share price of Strides Pharma Science rose 10 percent on July 30 after company reported profit in the June quarter results and entered in to joint venture with a Chinese firm.
Market Opens: It is a positive start for the Indian indices on July 30 with Nifty above 11,200.
At 09:19 hrs IST, the Sensex is up 136.02 points or 0.36% at 37822.39, and the Nifty up 44.70 points or 0.40% at 11233.90. About 394 shares have advanced, 318 shares declined, and 27 shares are unchanged.
Strides Pharma, Shalby, Zee Entertainment, Tata Motors, ICICI Bank, UPL, JSW Steel Bajaj Finserv, Bharti Airtel, Adani Ports, L&T and Eicher Motors, are some of the major gainers on the indices in the early trade, while losers are Dr Reddy's Lab, Indiabulls Housing, SPARC and Sanofi India.
Among sectors, except IT all other indices are trading marginally higher led by auto, metal, pharma, infra and FMCG.
Market at pre-open: Benchmark indices are trading flat with positive bias in the pre-opening session on July 30.
At 09:02 hrs IST, the Sensex is up 7.44 points or 0.02% at 37693.81, and the Nifty up 22.10 points or 0.20% at 11211.30.
Crude Update: Oil prices extended overnight gains on Tuesday amid widespread expectations the U.S. Federal Reserve will cut interest rates for the first time in more than a decade this week.
Nomura on Dr Reddy's Laboratories
Buy call with target at Rs 3,285 per share
Revenue was up 3% YoY & was 2% ahead of our estimates
Reported PAT at Rs 6.6 billion was 14% ahead of our estimates of Rs 10.3 billion
Morgan Stanley on Dr Reddy's Laboratories
Equal-weight on the stock with target at Rs 2,804 per share
Key US launches are likely being delayed (gNuvaring & gCopaxone)
Company is partially exiting its US specialty business
Kotak Institutional Equities on Dr Reddy's Laboratories
Rev, EBITDA, PAT miss estimates as recovery in US was offset by other geographies
Cut FY2020/21e EBITDA by 11%/6% & FY2020-21e EPS ny 8-9%
Reduce rating on the stock with target at Rs 2,450 per share
IDFC Securities on Dr Reddy's Laboratories
Maintain neutral on the stock with target at Rs 2,782 per share
Delay in big ticket launches remains a risk to estimates
Co has one of the most valuable ANDA pipeline amongst peers which should deliver going forward
Credit Suisse on Dr Reddy's Laboratories
Underperform rating with target at Rs 2,415 per share
Q1 better-than-expected with US performance driven by high-margin launches
Reported EBITDA benefitted from lower R&D but was offset by low API margin
CLSA on Dr Reddy's Laboratories
Maintain buy call, target at Rs 3,330 per share
On track to deliver on its realigned strategy
Q1 PAT up 45% YoY which included a one-time gain of Rs 350 cr
UBS on Dr Reddy's Laboratories
Neutral call, target at Rs 2,950 per share
New products’ success & cost control key for earnings growth
Q1 revenue & margin impacted by weak PSAI segment
Production issues impact operating earnings
BofAML on Dr Reddy's Laboratories
Maintain buy call, target at Rs 3,052 per share
Good base biz recovery with sales growing QoQ despite PSAI business
See good momentum in base markets like India, Russia & PSAI business
BofAML on Bharti Airtel
Upgrade to buy, target raised to Rs 400 from Rs 360 per share
Favourable risk-reward with tariff hike adding upside optionality
Expect company’s market share to remain stable at 30-31% from FY20-24
Jefferies on Gas Companies
Upgrade MGL to buy from underperform noting 12x FY20 P/E is attractive
Downgrade IGL to hold (Where 22x FY20 P/E seems to price in double-digit volume Growth)
Downgrade Gujarat Gas to hold as IMO & softer margin are near-term headwinds
CLSA on Kansai Nerolac
Maintain sell rating, raise target to Rs 390 from Rs 385 per share
Decent growth for decorative; industrial remains under pressure
Good start to FY20 with positive earnings growth
CLSA on India Strategy
India’s economy has slowed considerably over the last 12 months
Housing/investment cycle slowdown is the most pertinent issue
Housing-driven GFCF slowdown started from FY12
Early trends indicate consumption slowdown is not too deep at the moment
Our favourite investment themes are housing recovery
Other preferred picks are Bharti Airtel & Reliance Industries
In our model portfolio, we add LIC Housing & SBI
Cut overweight on HDFC Bank & ITC
CLSA on Supreme Industries
Retain buy call, cut target to Rs 1,274 from Rs 1,320 per share
Packaging margin remains weak; piping volumes are strong
Asian markets trade higher: Asian stocks edged up on Tuesday as equity investors prepared for an expected US interest rate cut this week while heightened concerns in currency markets about a no-deal Brexit sent the pound to a 28-month low.
US markets end mixed: US stocks on Monday stepped back from last week's record highs as investors took a breather ahead of an expected interest rate cut by the Federal Reserve and looked for signs of progress from US-China trade negotiations underway in Shanghai.
SGX Nifty: Trends on SGX Nifty indicate a flat opening for the broader indices in India, a gain of 18 points or 0.16 percent. Nifty futures were trading around 11,299-level on the Singaporean Exchange.