Benchmarks settle flat, Nifty ends at 11,300; Bharti Airtel slips over 2%
All that happened in the markets today
 "stock market, Sensex, BSE, Nifty")
Among sectoral indices on the NSE, Nifty PSU Bank index fell the most - down 1 per cent.
8:49 AM
NEWS ALERT :: Aurobindo Pharma gets US FDA nod for low blood pressure drug Midodrine Hydrochloride, reports CNBC TV18
8:48 AM
BROKERAGE VIEW :: Motilal Oswal Financial Services on Tata Power
CMP: Rs 53 | TP: Rs 66 (+25%) | Reco: Upgrade to Buy
>> Tata Power (TPWR)’s results reflect the benefit of asset monetization plans and better WC management as net debt (excl. restricted cash at CESU) declined to INR444b (from INR471b in FY20).
>> Divestment-related measures (part receipt of International Shipping business, Arutmin, and Tata SED) and the infusion of INR26b from promoters would continue to aid debt reduction. As we build-in expectations of normalization in its EPC businesses and some WC by FY22, we view the risk-reward as favorable at current levels. The approval of a tariff hike at Mundra, possible benefits from the merger of CGPL & Tata Power Solar with TPWR, and favorable InvIT valuations provide upsides.
>> Tata Power (TPWR)’s results reflect the benefit of asset monetization plans and better WC management as net debt (excl. restricted cash at CESU) declined to INR444b (from INR471b in FY20).
>> Divestment-related measures (part receipt of International Shipping business, Arutmin, and Tata SED) and the infusion of INR26b from promoters would continue to aid debt reduction. As we build-in expectations of normalization in its EPC businesses and some WC by FY22, we view the risk-reward as favorable at current levels. The approval of a tariff hike at Mundra, possible benefits from the merger of CGPL & Tata Power Solar with TPWR, and favorable InvIT valuations provide upsides.
8:46 AM
BROKERAGE VIEW :: Motilal Oswal Financial Services on Hindalco
CMP: Rs 176 | TP: Rs 233 (+33%) | Reco: Buy
>> Hindalco’s (HNDL) subsidiary Novelis’ 1QFY21 operating results were weak (in-line). EBITDA was down 40% YoY to USD219m on like-to-like basis (excluding Aleris) due to the impact of Covid-19.
>> However, business performance improved substantially with both volumes and margin now inching back to pre-Covid levels. We have raised our FY21/FY22E EBITDA estimates by 4%/6% and reiterate Buy. Note that valuation at 5.3x FY22E EV/EBITDA (~20% discount to 10-year average) does not factor in the expected ~9% CAGR in EBITDA over FY20-22E.
>> Outlook for Novelis is positive due to by resilience in the beverage can business and global recovery in auto demand (a high margin business).
>> Hindalco’s (HNDL) subsidiary Novelis’ 1QFY21 operating results were weak (in-line). EBITDA was down 40% YoY to USD219m on like-to-like basis (excluding Aleris) due to the impact of Covid-19.
>> However, business performance improved substantially with both volumes and margin now inching back to pre-Covid levels. We have raised our FY21/FY22E EBITDA estimates by 4%/6% and reiterate Buy. Note that valuation at 5.3x FY22E EV/EBITDA (~20% discount to 10-year average) does not factor in the expected ~9% CAGR in EBITDA over FY20-22E.
>> Outlook for Novelis is positive due to by resilience in the beverage can business and global recovery in auto demand (a high margin business).
8:43 AM
BROKERAGE VIEW :: Jefferies on Graphite India
Maintains 'Buy'
>> Co's Q1 revenue beat our expectations but EBITDA fell short
>> Covid disruption led to poor offtake, impacting realisations and volume
>> We trim FY21 margin, retain FY22/23 estimates
>> Co's Q1 revenue beat our expectations but EBITDA fell short
>> Covid disruption led to poor offtake, impacting realisations and volume
>> We trim FY21 margin, retain FY22/23 estimates
8:39 AM
BROKERAGE VIEW :: Jefferies on Tata Power
>> Co reported near-zero EBITDA
>> Co has seen severe downturn in Q1 but should see growth sequentially
>> See tailwind from passenger vehicle imports, new emission parts, defence
>> Co has seen severe downturn in Q1 but should see growth sequentially
>> See tailwind from passenger vehicle imports, new emission parts, defence
8:36 AM
BROKERAGE VIEW :: Morgan Stanley on Cummins India
Maintains 'Overweight', Target price: Rs 460
>> Low commodity prices and forex benefit cushioned margins
>> Next 12-18 months remain challenging
>> Low commodity prices and forex benefit cushioned margins
>> Next 12-18 months remain challenging
8:34 AM
Nifty may face resistance in sub-11,350 zone
As per weekly option data, handful of call writing on higher strikes, ranging from 11,300 to 11,500, which shows Nifty would face resistance in the sub-11,350 zone. 11,200 might act as support as maximum put OI stands here. We can witness short-covering move along with addition of fresh position only if Nifty breaches level of 11,350. Therefore, traders should try to create long position, keeping close eye on 11,200. READ MORE
8:26 AM
FII/FPI & DII trading activity on NSE, BSE and MSEI
8:25 AM
Rupee check
Source: Bloomberg
8:22 AM
Oil edges lower after jump on US stocks draw
>> Crude oil prices eased slightly on Thursday but held most of their gains from the previous session after US government data showed a fall in inventories, supporting the view that fuel demand is returning despite the coronavirus pandemic.
>> Brent crude was down 8 cents at $45.35 a barrel, after a gain of around 2% in the previous session. West Texas Intermediate oil was down by 6 cents at $42.61 a barrel after gaining 2.6% on Wednesday
(Source: Reuters)
(Source: Reuters)
8:19 AM
SGX Nifty update
>> At 8:18 am, the index was at 11,322.5 level, up 13.5 points or 0.10 per cent.
8:16 AM
Asian stocks set to track Wall Street's defiant rally
Source: Reuters
8:14 AM
S&P 500 finishes within points of record high close
Source: Reuters
Topics : Coronavirus Markets Ashok Leyland Aurobindo Pharma Hero MotoCorp Eicher Motors BPCL Indiabulls Housing Finance MARKET WRAP
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First Published: Aug 13 2020 | 7:28 AM IST
