Zoom Stock – Sensex closes 124 pts lower, Nifty at 15,824; IT, metals gain; banks, auto drag
Benchmark Indian equity indices closed lower after a flat start on Monday. Kotak Mahindra Bank’s net profit climbed 32% YoY. Meanwhile, unemployment numbers for the week of 25 July were up 7.14%, according to CMIE. The average number of daily fliers fell to 165,000 for the week ended 24 July, from 166,000 fliers a week before, brokerage firm ICICI Securities said in a report. Broader Asian markets were at significant lowes as a new rule in China on edtechs further spooked markets.
Market closing quote: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
“The Nifty has started the week on a tepid note; it continues to remain range bound with lackluster volumes. 15,600 is now a short term support while 15,400 is a good medium term support. 15,900 is a stiff resistance and we have witnessed severe selling pressure around that level. Until we are not successful in getting past either of the two levels, the markets will continue to vacillate between 15,400 and 15,900.”
Rupee settles 2 paise lower at 74.42 (provisional) against US dollar
The Sensex closed at 52,852.27, down 123.53 points or 0.23%, while Nifty was at 15,824.45, down 31.60 points or 0.20%. Realty, PSU banks and auto were top drags on Monday. On the 30-share Sensex, Bajaj FInserc, Ultratech, Sun Pharma, and nine other stocks closed in green, SBI, RIL, M&M, and 16 other stocks closed in red.
SBI Life gains
-Net profit down 23% to 220 crore from ₹390 crore a year ago
-Additional reserve of ₹444.7 crore due to covid-provided or
Voda Idea raises corporate plan tariffs: report
- The telco has raised corporate postpaid tariffs by 30-40%
- Plans start at ₹299
Alembic Pharma trades lower
Alembic Pharma reported Q1 ebitda of ₹ 2.36 billion compared to ₹4.07 billion. The Q1 ebitda margin stood at 17.8% compared to 30.37% a year ago. Ther pharma company’s Alembic Pharmaceuticals reported Q1 consolidated net profit of ₹1.64 billion compared to ₹3 billion a year ago.
Market commentary: Narendra Solanki, head- equity research (Fundamental), Anand Rathi Shares & Stock Brokers
“Indian markets started marginally in red following negative Asian market cues as China tech and education shares plunged and Singapore’s manufacturing output declined 3% in June on a seasonally adjusted, month-on-month basis. During the afternoon session, markets swung between positive and negative territory with lacklustre trade as traders were concerned since foreign portfolio investors (FPIs) offloaded Indian equities to the tune of over ₹5,689 crore in July so far as they continued to adopt a cautious stance in view of various domestic and global factors. Also, the European stocks were seen retreating as investors watch corporate earnings, covid cases and German business sentiment which fell unexpectedly in July as supply chain constraints and rising covid-19 infections dampened recent optimism.”
Mphasis, Infy drive gains
Mamaearth raises $50mn round led by Sofina Ventures
Mamaearth, the toxin-free personal care brand has closed its latest $50 million round led by Sofina Ventures SA. The round witnessed participation from existing investor Sequoia Capital India. Along with primary infusion by Sofina Ventures, the Belgian-based investment company, the round also saw secondary sale by early investors like Fireside Ventures, Stellaris Venture Partners, Sharp Ventures and Titan Capital. The round also gave some early employees an opportunity to monetize their vested ESOPs. (Read here)
Bitcoin surges to near-$40K levels
Bitcoin rallied to the near $40,000 level to hit a six-week high on Monday driven by speculations that Amazon may soon allow customers to make purchases using the price of the world’s biggest cryptocurrency. The digital asset has witnessed an uptrend over the past couple of days as it skyrocketed from $30,000 to $35,500 levels. At around 2pm IST, BTC was trading 9.7% higher at $38,036.37 after trading in a wide range of $33,934.31-39,571.60, as per CoinGecko. Bitcoin is still 40% lower against its all-time high of $64,804.72.
Unemployment rate climbs: CMIE
The unemployment rate in rural and urban India climbed up in the week ended 25 July, reversing the proceeds made in a week ago period, fresh data from the Centre for Monitoring Indian Economy (CMIE) showed on Monday. The national joblessness rate climbed to 7.14% in the week ended 25 July as against 5.98% in the previous week ended 18 July. However, rural unemployment took a sharp upward turn to 6.75% from 5.1% the week-ago period. (Read here)
FM personally monitoring 45-day norm to clear pending MSME payments
Finance Minister Nirmala Sitharaman on Monday said that she was personally monitoring the norm of clearing dues owed to Micro, Small and Medium Enterprises (MSMEs) within 45 days is met. (Read here)
FM tables Insolvency and Bankruptcy Code (Amendment) Bill 2021 in Lok Sabha
Crude oil commentary: Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking
“Last week, WTI Crude ended higher by 0.4% despite the massive fall in the beginning of the week and an uptick in US crude inventories as bets on surge in global demand following the recovery in global economies kept oil prices afloat.
Oil prices plunged over 7% in the beginning of the week as the Organization of Petroleum Exporting Countries and their allies (Opec+) agreed to increase crude supply by 400,000 barrels per day from August to December. However, crude prices ended the week in the positive territory on hopes of a tighter global crude market following the resumption in global economies. Expectations of increase in global demand and an accommodative approach by major central banks might be supportive for oil in the week ahead. However, floods in China and soaring covid-19 variants cases might weigh down the demand.”
Sona BLW trades lower
Automotive technology company Sona Comstar’s stock was trading at ₹408.95 each, down 3.20% around 2 pm. Earlier, it was reported that the government was not keen on providing company specific import benefits for completely foreign built cars after Tesla founder Elon Musk tweeted about the high import costs.
Kotak Mahindra Bank gains on Q1 results
-Kotak Mahindra Bank reports Q1 net profit of ₹1,642 crore,
-Net NPA at ₹2,792 crore in absolute terms
-Gross NPA at ₹7,932 crore
Stock watch: Angel Broking maintains ‘buy’ on United Spirits
Angel Broking has maintained a CMP of ₹669 and target price of ₹770.
“United Spirits (USL) is engaged in the business of manufacture, purchase and sale of beverage alcohol and other allied spirits, including through tie-up manufacturing units and through strategic franchising of some of its brands. In Q1FY22, USL has shown strong revenue recovery of 67% year-on-year (y-o-y) and Profit growth of 120% y-o-y. Going forward, with the drop in covid positivity rates and steady increase in the vaccination coverage, we expect the recovery momentum to accelerate. Further, we expect healthy revenue growth & profitability on the back of wide distribution network & strong brand, product innovation and other category growth initiatives. Hence, we are positive on stock.”
Global Update: Heena Naik, research analyst – currency, Angel Broking
– Business activity in the eurozone increased at its fastest rate in 21 years in July due to loosened covid-19 restrictions. But the spread of the Delta variant infused concerns that new measures could again sow chaos in the economy.
– The Federal Reserve meets on Wednesday and, while no change in policy is expected, Chair Jerome Powell will likely be pressed to clarify what “substantial further progress” on employment would look like.
– Chinese tech shares plunge as regulatory pressure lingers. Apparently, China’s antitrust regulator ordered Tencent to give up its exclusive music licensing rights and slapped a fine on it for anti-competitive behavior.
– Today, both the US and China are expected to hold their first high-level talks since March.
– India’s exports grew by 45.13% in July on account of growth in sectors such as gems and jewellery, petroleum and engineering. Imports also rose by 64.82%, leaving a trade deficit of $ 9.29 billion.
– India’s FX reserves zoom to record high of $612.73 bn.
Yes Bank outperforms
Divi’s Labs, Sun Pharma surge
RIL trades lower
RIL’s stock was trading at ₹2,089.00 each, down 0.77% at12:48 pm. The company on Friday said its fiscal first-quarter profit fell 7.25% as the second wave of covid-19 impacted businesses. Profit fell to ₹12,273 crore for the quarter to June from ₹13,233 crore a year ago. Revenue from operations rose 58% to ₹1.44 trillion from ₹91,238 crore a year ago. A Bloomberg survey of analysts estimated a consolidated net profit of ₹13,022.90 crore on net sales of ₹1.47 trillion.
Three Muzaffarnagar distilleries produce 6.73 cr litres of ethanol in FY21
Three distilleries in the district have produced 6.73 crore litres of ethanol in 2020-21, according to an official. The central government has set a target for achieving 20 per cent ethanol-blending with petrol by 2023 to help reduce India’s dependence on costly oil imports. District Excise Officer, Muzaffarnagar, Uday Prakash said three distilleries have produced 6.73 crore litres of ethanol in the district during 2020-21. Triveni Alco produced 4.30 crore litre ethanol, while the output for Tikaula Sugar Mills and Mansurpur Distillery was 1.12 crore litre and 1.31 crore litre, respectively, he added. These units have the capacity to produce 10.97 crore litres of ethanol in a year, Prakash said. (PTI)
ICICI Bank top gainer, Tata Motors trades lower
ICICI Bank shares hit 52-week high post Q1 earnings
Shares of ICICI Bank on Monday gained over 1 per cent and touched 52-week high on the bourses after the company’s June quarter net profit zoomed 52 %. The stock rose by 1.29% to ₹685.40 — its 52-week high — on the BSE.
At the NSE, it gained 1.30% to ₹685.45 — its 52-week high.
China’s new private tutoring rules put billions of dollars at stake
China’s sweeping new rules in private tutoring has left private education firms facing a significant business impact as Beijing steps up regulatory oversight of a $120 billion industry that investors had bet billions of dollars on in recent years. The new rules released on Friday bars for-profit tutoring in core school subjects in an effort to boost the country’s birth rate by lowering family living costs. The news sent shockwaves through the sector and parents struggled to understand how exactly the move would impact their children in a highly competitive education system. Under the new rules, all institutions offering tutoring on the school curriculum will be registered as non-profit organisations, and no new licences will be granted, according to an official document. (Reuters)
Karnataka CM BS Yediyurappa announces resignation
Govt eyes insurance law amendments in Monsoon Session: report
*Govt to move insurance law amendments in current session
*Govt to decontrol 1 PSU non life insurer while retaining strategic presence
Centre eyes zero-rated GST compensation: report
*Centre may introduce for zero rated GST compensation for states
*Not in favour of GST compensation period beyond five years
Max Bupa Health Insurance rebranded as Niva Bupa
Max Bupa Health Insurance will be rebranded as Niva Bupa Health Insurance owing to a change in shareholding pattern. With the exit of Max India and the entry of private equity firm True North, Max Bupa needed to create a new brand identity. All changes around the brand transition will likely reflect by year-end. (Read here)
Govt not keen on incentives for Tesla: report
The government is not in favour of doling out incentives to fully built-up imported cars, Moneycontrol.com reported officials familiar with the matter. This comes a day after Tesla founder Elon Musk in a tweet highlighted India’s steep duties on import of his company’s cars.
Zomato shares continue to extend gains a day after stellar debut
Zomato share price continued to extend gains on the second day on Monday after India’s first unicorn to go public made a strong debut on the stock exchanges on Friday. Shares of Zomato were trading over 2.5% higher on the BSE at ₹129 per share in early deals. Its market capitalization remained above the ₹1 lakh crore mark which it had crossed soon after listing, making it one of the top 50 most valuable publicly traded firms in India. (Read here)
SBI Card gains
SBI Cards and Payment Services’ stock was trading at ₹1,006.60 each, up 5.18% at 11:20 am. The company has restructured credit card dues of ₹258 crore in the June quarter under the second leg of Reserve Bank of India’s (RBI’s) debt recast scheme and has since seen a reduced inflow of requests, chief executive officer (CEO) Rama Mohan Rao Amara told analysts. (Read here)
United Spirits back in black in Q1, posts net profit at ₹69.1 cr
Diageo-controlled liquor maker United Spirits Ltd on Friday swung back in profit as the firm posted a standalone net profit of ₹69.1 crore year-on-year (YoY) in the quarter ended 30 June, 2021. It has posted a net loss of ₹251 crore in the year-ago period. The total income of the company for the June quarter was also up almost 59% to ₹6,073 crore as against ₹3,829 crore in the year-ago period.
Arvind Fashions gains
The company’s stock was trading at ₹219.90, up 11.57% at 10:48 am. The company’s unit, apparel retailer Arvind Lifestyle Brands Limited (ALBL), on Thursday announced that it has signed a definitive agreement to sell its value-fashion retail chain Unlimited to retailer V-Mart Retail Ltd., for an estimated Rs150 crore in an all-cash transaction. (Read here)
Ambuja’s Q2 earnings were good, but not enough to allay growth concerns
Ambuja Cement Ltd reported robust operating performance in the June quarter. Akin to peers ACC Ltd and Ultratech Cement Ltd, its Ebitda at ₹960 crore, up 61% year-on-year, beat analysts’ expectations, driven by better-than-anticipated realisations and lower costs. Ebitda is short for earnings before interest, tax, depreciation and amortization. (Read here)
Nifty commentary: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
“The markets seem to be very lethargic! We have been trading in this range since a very long time. 15,400-15,900 continues to remain the lack luster zone for the Nifty and until we do not get past either ends, we will not see a meaningful move. The technical charts still suggest a positive bias and hence dips or corrections which take the markets closer to the lower end of the range can be utilized to accumulate long positions for higher targets.”
Auto, banks, financials drag
Rupee slips 4 paise to 74.44 against US dollar in early trade
Sun Pharma gains
Sun Pharma’s stock was trading at ₹699.40 each, up 0.78% at 10:07 am. Sun Pharma, Cassiopea SpA have signed a licence and supply agreements for Winlevi in US and Canada. The US FDA approved Winlevi as a novel drug for the topical treatment of acne in patients 12 years and older.
Vodafone Idea gains
Vodafone Idea’s stock was trading at ₹8.39 each, up 0.36% at 10:03 am. Vodafone Group Plc and Aditya Birla Group may cede control of Vodafone Idea Ltd (VIL) if a strategic investor wants to take control of the telco, according to a Mint report. (Read here)
Active covid-19 cases in country increase to 4,11,189: govt
JSPL’ s stock was trading at ₹413.35 apiece, up 3.92% at 9:37 am. The domestic metals and mining company has revised the divestment plan of its subsidiary Jindal Power Ltd (JPL) and has offered a revision from Worldone, a promoter entity, after its initial offer in May drew flak from a section of investors who cited low valuation of the deal and related party nature of the transaction as contentious issues, the company said on Sunday. (Read here)
JSW Steel trades lower
The company’s stock was at ₹712.25 apiece, down 0.72% at 9:35 am. The company reported a record profit of ₹5,900 crore for the fiscal first quarter amid a surge in the prices of the alloy. The company had reported a loss of ₹582 crore in the corresponding quarter of the previous year. (Read here)
Delhi Unlock effect: PVR gains
The multiplex operator’s stock was trading at ₹1,396.80, up 5.95% at 9:28 am. The Delhi government has allowed cinema halls, theatres and multiplexes to open with 50% seating capacity. (Read here)
The Sensex opened at 52,985.26, up 9.46 points or 0.02%, while the Nifty was at 15,849.30, down 6.75 points or 0.04%. Metals were in green at market opening. ITC, Sun Pharma, ICICI Bank, and 15 other stocks opened in green, while Nestlé India, Kotak Mahindra Bank, HDFC Bank, and nine other stocks opened in red.
At pre-open, the Sensex was at 53,047.91, up 72.11 points, or 0.14%, while Nifty was at 15,856.05, up 32.00 points, or 0.20%.
Domino’s partners Revolt Motors for transition to e-bikes
Rattan India Enterprises-backed electric motorcycle manufacturer Revolt Motors is collaborating with Pizza restaurant chain Domino’s to replace the latter’s current fleet of petrol bikes into electric ones.
In a final bid for funds, Vi promoters might dilute holdings
Vodafone Group Plc and Aditya Birla Group may cede control of Vodafone Idea Ltd (VIL) if a strategic investor wants to take control of the telco, according to a Mint report. (Read here)
Markets are likely to be volatile on Monday while trends in SGX Nifty suggest a weak opening. On Friday, the BSE Sensex ended at 52,975.80, up 138.59 points or 0.26%. The Nifty closed at 15,856.05, up 32 points or 0.20%. (Read here)
Petrol, diesel prices today remain unchanged. Latest rates in Delhi, Mumbai, other cities
Petrol and diesel prices were kept unchanged for the ninth consecutive day on Monday, however, remained at the record high levels. Petrol is retailing at ₹101.84 in Delhi, whereas diesel at ₹89.87. In India’s financial capital Mumbai, petrol is being sold at ₹107.83 per litre, whereas diesel has reached ₹97.45 per litre. In Kolkata, petrol prices stand at ₹102.08 per litre and diesel prices at ₹93.02 per litre. In Chennai, petrol prices at ₹102.49 per litre; diesel prices – ₹94.39 per litre. (Read here)
Stocks to Watch
Adani Transmission, ITC, ICICI Bank, RIL, JSPL, SBI Card, among other stocks may remain in focus today. (Read here)
Bitcoin inches towards $40,000, ether, dogecoin also surge.
Cryptocurrencies continued to gain with the world’s largest crypto inching towards the $40,000 level after comments from Ark Investment Management LLC’s Cathie Wood and Tesla Chief Executive Officer (CEO) Elon Musk helped boost its momentum. Bitcoin prices rose as much as 15% to $$39,544 over the last 24 hours, as per Fintech Zoom. The token climbed above its 50-day moving average over the weekend. (Read here)
Asian stocks open higher
Most Asian stocks rose early Monday after US shares rallied to an all-time high on corporate earnings, though traders are also mulling China’s technology-sector crackdown and an upcoming Federal Reserve meeting. Japan jumped after reopening from a two-day holiday, Australia edged up and South Korea fluctuated. Futures slid in Hong Kong, where an index offering exposure to China’s internet giants is the world’s worst-performing major tech gauge. Beijing’s latest tightening is a reform of its $100 billion education tech sector, undermining one of China’s hottest investment plays in recent years.
S&P 500 futures slipped 0.2% as of 9:25 a.m. in Tokyo. The S&P 500 rose 1%
Japan’s Topix index added 1.7%%
Australia’s S&P/ASX 200 increased 0.2%
South Korea’s Kospi index fell 0.2%
Hang Seng Index futures fell 0.8% earlier
SGX Nifty was down 0.51%
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