Sensex gains 277 pints; Indiabulls Housing surges 7%

06 Aug 2019

Reliance, BP Form Joint Venture

Reliance Industries and UK's BP have agreed to form a new joint venture to set up a retail service station network and supply commercial aviation turbine fuel to airlines in India.

According to a release, the venture will build on Reliance’s existing Indian fuel retailing network, which currently has 1,400 petrol pumps across India, and its aviation fuel business to cater to India’s demand for energy and mobility.

The venture aims to set up 5,500 petrol pumps over the next five years.

Technical Outlook

"Technically this is a short term bounce, for now, we have seen which is seen on the back of some minor short-covering and technical patterns. We may not consider this to evident for a medium-term rebound but this is a kind of relief. The market is still below its short term moving averages and it is important to see how we react to those levels," Mustafa Nadeem, CEO at Epic Research said.

Ajit Mishra, VP- Research, Religare Broking:

The Indian equity indices opened on a weak note, however recovery in global indices led to a sharp pullback in the markets. Healthy buying was witnessed throughout the session as the Nifty index ended 0.8% higher at 10,948 levels.

The broader markets outperformed the benchmark with BSE Midcap and BSE Smallcap ending with gains of 1.4% and 1.7% respectively. Amongst the sectoral indices, except IT and Oil & Gas which ended on a flat note, all the other indices witnessed healthy buying interest with Capital Goods, Banking and Realty being the top gainers.

Going forward, we expect volatility to remain high in the near term and maintain our cautious stance on Indian markets. Given the comforting inflation data and declining growth, expectations are rife for a fourth consecutive rate cut of 25bps by RBI in its policy meet on August 07, 2019.

However, the commentary on growth and inflation would be more important factor in deciding the course of the markets. On the global front, escalating trade tensions between US and China will keep market participants on edge and cause volatility in oil prices as well as currency.

Market Close: Benchmark indices finished on positive note but off day's high in the volatile session on August 6.

At close, the Sensex was up 277.01 points at 36,976.85 while Nifty was up 85.70 points at 10,948.30. About 1622 shares have advanced, 810 shares declined, and 115 shares are unchanged.

Indiabulls Housing, Yes Bank, Tech Mahindra, Bajaj Finance and Eicher Motors were among major gainers on the Nifty, while losers include Zee Entertainment, Cipla, Reliance Industries, Power Grid Corp and TCS.

Among sectors, except energy other indices ended in the green led by the infra, auto, bank, metal and FMCG.

Titan Company Q1 standalone net profit up 6%:

Titan Company has registered 6.2 percent jump in its Q1FY20 standalone net profit at Rs 370.7 crore against Rs 349.2 crore in the same quarter last fiscal.

Revenue of the company rose 14.4 percent at Rs 4,939.7 crore versus Rs 4,319 crore.

Earnings before interest, tax, depreciation and amortization (EBITDA) was up 14.1 percent at Rs 565.3 crore, while margin was flat at 11.4 percent.

Nifty reclaims 11,000:

Benchmark indices are trading at day's high level with Nifty reclaimed 11,000 on the back of buying seen in the infra, auto, bank, metal and pharma

The Sensex is up 506.03 points at 37205.87, while Nifty is up 143.30 points at 11005.90. About 1536 shares have advanced, 699 shares declined, and 99 shares are unchanged.

Pidilite Industries Q1 profit jumps 22%:

Pidilite Industries has reported 22.7 percent surge in its Q1 net profit at Rs 292.9 crore versus Rs 238.7 crore, revenue was up 10 percent at Rs 2,016.8 crore versus Rs 1,834 crore, YoY.

Earnings before interest, tax, depreciation and amortization (EBITDA) was up 16.2 percent at Rs 443.6 crore, while margin was at 22 percent.

Buzzing: Shares of Arvind touched 52-week low of Rs 52.50, falling 6 percent on August 6 after company's Q1c net profit fell 59.7 percent at Rs 24.1 crore against Rs 59.8 crore, revenue was up 4.8 percent at Rs 1,896.5 crore versus Rs 1,809.6 crore, YoY.

Zee Entertainment Enterprises Falls 6%

After sharp fall in stock price, Zee Entertainment told CNBC-TV18 that the stock movement will not change anything with respect to stake sale deal with Invesco Oppenheimer.

Last week, the media & entertainment company had announced sale of 11 percent stake to Oppenheimer for Rs 4,224 crore.

Sensex Gains 300 Pts:

Benchmark indices gained strength in afternoon with the Sensex reclaiming 37,000 level, rising 298.59 points to 36,998.43.

The Nifty50 jumped 87.60 points to 10,950.20. The market breadth was in favour of bulls as about two shares advanced for every share falling on the BSE.

Kolte-Patil Developers ?Shares Rally 13%

Kolte-Patil Developers reported stellar growth in June quarter consolidated net profit at Rs 116 crore against Rs 37.9 crore in same period last year, backed by revenue which increased 50 percent year-on-year to Rs 585.7 crore in Q1.

EBITDA in Q1 jumped 43.9 percent year-on-year to Rs 195.1 crore, but margin contracted 140 bps YoY to 33.3 percent in Q1.

Buzzing: Shares of Torrent Power rose 3 percent on August 6 after company's Q1 profit jumped 21.7 percent to Rs 277 crore versus Rs 227.3 crore and revenue rose 5.9 percent to Rs 3,736.1 crore versus Rs 3,528.1 crore, YoY.

Market Update:

Benchmark indices are holding on the morning gains with Nifty trading above 10,900 supported by metal, pharma and auto stocks.

The Sensex is up 139.60 points at 36839.44, and the Nifty is up 45 points at 10907.60. About 1298 shares have advanced, 513 shares declined, and 74 shares are unchanged.

It is bioequivalent to the reference listed drug product (RLD), Evekeo Tablets, 5 mg and 10 mg, of Arbor Pharmaceuticals, LLC.

Citi on AU Small Bank

Buy rating with a target of Rs 720 per share

Asset quality resilient; have a large scope to grow

Overall growth guidance remains at 30-35%

Citi on Dilip Buildcon

Target cut to Rs 514 from Rs 654 per share

Q1 PAT down 51% YoY on lower sales

Bright spot is the cash flow from operations

Credit Suisse on LIC Housing

Outperform call, target at Rs 575 per share

In-line operating performance; stress in developer book continues

Co continues to gain mortgage market share

Citi on LIC Housing

Buy rating, target at Rs 590 per share

Q1 disbursements slow; asset quality weakens

Miss largely led by higher than expected provisions

Nomura on Bharat Forge

Maintain neutral, target at Rs 439 per share

Average monthly order inflow for class 8 trucks remain weak

Monthly truck production should come down given low order inflows

Downside risk to our estimate of flat/15% decline in production volumes in FY20/21

CLSA on Reliance Industries

Maintain buy rating, target at Rs 1,530 per share

Jio’s FY19 FCF worsened but is set to improve

Jio capex is likely to have peaked in FY19

Demerger of tower & fibre assets should bring down capex intensity

Morgan Stanley on L&T Info

Initiate coverage with overweight, target at Rs 1,780 per share

Demonstrated strong growth & stability since its IPO

Expect core biz to outpace that of most peers

Macquarie on Ujjivan

Neutral call, target cut to Rs 260 from Rs 350 per share

Advise investors to wait for the listing of the small fin bank

Expect 6-8% rise in EPS over FY20-21 on faster growth

BofAML on Bharat Forge

Downgrade to neutral from buy, target cut to Rs 450 from Rs 540 per share

Slowing export momentum a risk to near-term earnings

See significant room for growth from defence vertical & PV exports

Market Opens: Indian indices are trading positive with marginal gains in the opening session amid weak global cues.

At 09:17 hrs IST, the Sensex is up 41.29 points at 36741.13, while Nifty is up 18.90 points at 10881.50. About 335 shares have advanced, 382 shares declined, and 28 shares are unchanged.

Zee Entertainment, Yes Bank, Hindalco, Tata Steel, Titan, HUL, RIL, are among major losers on the indices in the early trade, while gainers are SRF, Tech Mahindra, Eicher Motors, IndusInd Bank, Berger Paints Axis Bank and Bajaj Finance.

Among sectors, except FMCG other indices are trading with marginal gains led by the PSU bank, auto, infra, metal, IT and energy.

Market at pre-open: Benchmark indices are trading weak in the pre-opening session with Nifty around 10,800 level.

At 09:03 hrs IST, the Sensex is down 31.28 points or 0.09% at 36668.56, and the Nifty down 57.00 points or 0.52% at 10805.60.

Asian markets tumble: MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.75% to its lowest since January.

Japan's Nikkei shed 2.7%, Australian stocks fell 2.6% and South Korea's KOSPI slid 1.5%.

SGX Nifty: Trends on SGX Nifty indicate a negative start for the broader indices in India, a fall of 84.50 points or 0.78 percent. Nifty futures were trading around 10,785-level on the Singaporean Exchange.

Asian markets tumbles: MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.75% to its lowest since January.

Japan's Nikkei shed 2.7%, Australian stocks fell 2.6% and South Korea's KOSPI slid 1.5%.

Wall Street sinks: Wall Street slumped on Monday and futures pointed to more losses to come after a fall in China's yuan currency and US President Donald Trump's vow to impose additional tariffs on Chinese goods sparked an escalation of the US-China trade war.