MARKET WRAP: Sensex slips 129 pts, Nifty ends at 11,073; RIL declines 2%

All that happened in the markets today

The domestic stock market ended Friday's volatile session in the negative territory, weighed down by heavyweights Reliance Industries (RIL) and the HDFC twins. Weak global markets following disappointing US gross domestic product (GDP) data, too, dented investor sentiment.

The S&P BSE Sensex ended 129 points or 0.34 per cent lower at 37,607 while the Nifty50 index gave up the 11,100-mark to settle at 11,073, down 29 points or 0.26 per cent. India VIX declined nearly 3 per cent to 24 levels. 

On a weekly basis, Sensex fell 1.36 per cent while NSE's Nifty slipped 1 per cent.

Among individual stocks, shares of RIL ended 2 per cent lower at Rs 2,067 apiece on the BSE after the company reported a profit before tax (PBT) of Rs 8,542 crore against Rs 14,366 crore reported during the same quarter last year. The company's net profit, however, rose about 31 per cent to Rs 13,233 crore against Rs 10,104 crore in the same quarter last year. READ MORE

State Bank of India (SBI) ended over 2.6 per cent up at Rs 191.45 after the lender posted 36.8 cent rise in profit before tax (PBT) at Rs 5,559.7 crore for the quarter ended June 2020 (Q1FY21) on robust growth in net interest income. 

The sectoral trend on the NSE was mixed. While pharma, PSU banks, and realty counters advanced, auto and private banks ended flat with negative bias. Nifty Pharma index gained the most - up 3.6 per cent to 11,148.90 levels.

In the broader market, the Nifty Smallcap 100 index gained over 0.8 per cent to 5,011 while the Nifty Midcap 100 closed 0.4 per cent higher at 15,471 points.

Global markets

Asian shares turned lower in a choppy session on Friday as abysmal economic data from the United States and rising global Covid-19 cases darkened the mood, despite strong US tech earnings and manufacturing recoveries in China and Japan.

European shares were largely flat after encouraging earnings updates from Nokia, BNP Paribas and others countered concerns about a global economic recovery as coronavirus cases surged globally.

The US dollar was also set for its worst month in a decade amid expectations the Fed will maintain its ultra-loose monetary policy for years.

In commodities, oil prices rose and were on track for monthly gains, boosted by a weaker dollar in the face of continuing concerns over the recovery of the US economy as the coronavirus ravages the world’s biggest economy and oil consumer.

(With inputs from Reuters)

4:15 PM

COMMENT:: Vinod Nair, Head of Research at Geojit Financial Services

Indian markets closed the session flat, with a negative bias. Following one of the worst quarterly US GDP data, Asian shares closed in the negative while European markets were also trading flat. In India, the uncertainty was visible as profit booking and post-earnings results performance of index heavyweights, impacted the benchmark indices. On a weekly basis, the indices closed with slight losses following a result-heavy week and stock-specific action in the benchmark indices while at the same time virus infections continued to increase.

 

WEEK AHEAD

 

Markets seem to be in a consolidation mode with momentum slowing down in the last couple of sessions. This trend is expected to stay since the uncertainties continue and volatility remains high. Investors are advised to remain cautious and accumulate quality stocks in this uncertain environment

3:44 PM

SECTOR WATCH:: Nifty Pharma rallies 3.5%

3:43 PM

MARKET AT CLOSE:: Losers and gainers on the S&P BSE Sensex

3:36 PM

CLOSING BELL

The S&P BSE Sensex ended at 37,607, down 129 points, or 0.34 per cent while NSE's Nifty ended at 11,073, down 29 points, or 0.26 per cent. 

3:30 PM

BROKERAGE VIEW:: HDFC Securities on RBL Bank

Significant treasury gains and strong NIMs buoyed RBK’s 1Q earnings. While QoQ deposit growth was healthy, deposit granularity remains an area of concern. Moratorium trends in the credit card and micro-credit portfolios, where LGDs are high, are concerning. These segments could contribute disproportionately to slippages and LLPs. Provisions are likely to remain elevated in the near term, denting return ratios. This underpins our REDUCE rating. Our price target of Rs 148 remains unchanged.

3:21 PM

MARKET CHECK

3:13 PM

UPDATE:: Adani Gas gains nearly 1.5%

3:01 PM

NEWS ALERT :: Penalty provision for short-collection/ non-collection of upfront margin in cash segment shall be implemented w.e.f Sept 1, 2020

2:55 PM

RIL, HDFC twins contribute the most to Sensex's 200-point fall today

2:51 PM

June Quarter Result :: Sun Pharma reports loss of Rs 1,655.6 crore

>> One-time loss of Rs 3,633.3 crore

>> Revenue at Rs 7,585.3 crore

>> EBITDA at Rs 1,843.6 crore

>> EBITDA margin at 24.3%

2:46 PM

MARKET CHECK:: BSE Energy index falls 1.7%

2:36 PM

BROKERAGE VIEW:: ICICI Securities on Torrent Pharma

Overhang pertaining to two US-focused plants notwithstanding, Torrent continues to impress thanks to its robust margin profile, which can be attributed to a global portfolio that comprises ~60% branded generics. We expect a further improvement in this matrix and product rationalisation to further strengthen margins. The company’s portfolio is finely balanced between India, Brazil, Germany and the US with Indian being the leader. With consistent FCF generation and moderation in core capex, we expect the leverage situation to improve substantially. With these key characteristics we believe the premium valuation is justified. We upgrade to BUY with a revised target price of Rs 2,865 (30x of FY22E EPS of Rs 95.5).

2:33 PM

NEWS ALERT :: Banks can't refuse loan to MSMEs under Emergency Credit Fund, says FM

2:32 PM

NEWS ALERT :: Working with RBI on extension of the moratorium or loan restructuring for hospitality sector, says FM Nirmala Sitharaman

2:25 PM

Rupee Closing

Rupee ends at 74.81 per US dollar vs Thursday's close of 74.84/$