Sensex rises for 4th day, ends 225 pts higher; financial, metal stocks gain
All that happened in the markets today
 "markets")
NSE's Nifty ended at 11,322.50, up 52 points or 0.46 per cent.
9:04 AM
Markets at Pre-open
9:03 AM
Markets at Pre-open
8:58 AM
Top stocks to watch out for today
ICICI Bank: Private lender ICICI Bank on Monday launched its qualified institutional placement (QIP), setting the floor price at Rs 351.36 per share. The bank plans to raise up to Rs 15,000 crore to support business growth and create a buffer to absorb any shock from the economic disruption caused by the coronavirus pandemic.
Bank of Baroda: Bank of Baroda (BoB) posted a pre-tax loss of Rs 1,308 crore in the quarter ended June 2020 (Q1FY21) due to rise in provisions for standard assets, including those under moratorium and government-guaranteed loans. It had recorded profit before tax (PBT) of Rs 991 crore in Q1FY20.
Power Grid: The company on Monday posted an over 18 per cent fall in its consolidated net profit to Rs 2,048.42 crore for the June 2020 quarter. READ MORE
8:54 AM
BROKERAGE VIEW :: Jefferies on Power Grid
Maintains 'Hold', Target price: Rs 160
>> Co's profit in line with estimates
>> Co reports one-time rebate of Rs 1075 crore
>> Concerns remain around weak growth outlook
>> Co's profit in line with estimates
>> Co reports one-time rebate of Rs 1075 crore
>> Concerns remain around weak growth outlook
8:50 AM
BROKERAGE VIEW :: Nomura on Bank of Baroda
Maintains 'Neutral', Target price: Rs 50
>> RoE to remain sub-par for long at 1%/5% for FY22/23
>> Expect FY21/22 credit costs to be 270/250 bps
>> Dilution risk remains high with weak capital position
>> RoE to remain sub-par for long at 1%/5% for FY22/23
>> Expect FY21/22 credit costs to be 270/250 bps
>> Dilution risk remains high with weak capital position
8:46 AM
BROKERAGE VIEW :: Citi on Bank of Baroda
Maintains 'Buy', Target price: Rs 65
>> Moratorium declines to 21%
>> Lower FY21e/22e PAT estimate by 30%/ over 4%adjusting for Q1 miss and lower margin
>> Moratorium declines to 21%
>> Lower FY21e/22e PAT estimate by 30%/ over 4%adjusting for Q1 miss and lower margin
8:43 AM
BROKERAGE VIEW :: Motilal Oswal Financial Services on Lemon Tree Hotels
CMP: Rs 24 | TP: Rs 33 (+36%) | Reco: Buy
>> Lemon Tree Hotels’ (LEMONTRE) cost saving initiatives have aided in achieving positive EBITDA (higher than est.). This is commendable in our view, especially at a time when hotel players have either reported or are likely to post EBITDA loss (for players yet to announce results).
>> Although EBITDA was above our estimates, we have maintained our FY21/22E estimates as 1QFY21 is not expected to contribute materially to FY21 EBITDA. We have a Buy rating on the stock with TP of INR33.
>> Lemon Tree Hotels’ (LEMONTRE) cost saving initiatives have aided in achieving positive EBITDA (higher than est.). This is commendable in our view, especially at a time when hotel players have either reported or are likely to post EBITDA loss (for players yet to announce results).
>> Although EBITDA was above our estimates, we have maintained our FY21/22E estimates as 1QFY21 is not expected to contribute materially to FY21 EBITDA. We have a Buy rating on the stock with TP of INR33.
8:40 AM
BROKERAGE VIEW :: Motilal Oswal Financial Services on Mahanagar Gas
CMP: Rs 968 | TP: Rs 1,200 (+24%) | Reco: Buy
>> Mahanagar Gas (MAHGL)’s 1QFY21 EBITDA was marginally above est., led by better volumes; however, EBITDA/scm came in below estimates.
>> Total sales improved to ~65% of normal levels in Aug’20 v/s 55% in Jul’20 and 25% in Apr’20. These are estimated to rise further with an increase in vehicle movement and the opening up of malls and other commercial and industrial units.
>> Cab aggregators are currently operating at ~40% of normal levels, and ~50% of auto rickshaws are back on the road, plying passengers.
>> BEST has inducted ~300 CNG buses to date of its total plan of adding ~500 buses and expects another ~150 CNG buses to be added by the end of Oct’20. BEST is also likely to add another 800–1,000 CNG buses over and above the current ongoing induction of 500 buses.
>> While lockdown has affected demand, CGDs are likely to compensate for the volume loss from lower APM and spot prices. We maintain Buy on MAHGL considering its attractive valuations, and value it in line with global peers at 16x FY22E EPS to arrive at TP of INR1,200
>> Mahanagar Gas (MAHGL)’s 1QFY21 EBITDA was marginally above est., led by better volumes; however, EBITDA/scm came in below estimates.
>> Total sales improved to ~65% of normal levels in Aug’20 v/s 55% in Jul’20 and 25% in Apr’20. These are estimated to rise further with an increase in vehicle movement and the opening up of malls and other commercial and industrial units.
>> Cab aggregators are currently operating at ~40% of normal levels, and ~50% of auto rickshaws are back on the road, plying passengers.
>> BEST has inducted ~300 CNG buses to date of its total plan of adding ~500 buses and expects another ~150 CNG buses to be added by the end of Oct’20. BEST is also likely to add another 800–1,000 CNG buses over and above the current ongoing induction of 500 buses.
>> While lockdown has affected demand, CGDs are likely to compensate for the volume loss from lower APM and spot prices. We maintain Buy on MAHGL considering its attractive valuations, and value it in line with global peers at 16x FY22E EPS to arrive at TP of INR1,200
8:37 AM
BROKERAGE VIEW :: Motilal Oswal Financial Services on Titan Company
CMP: Rs 1,108 | TP: Rs 1,300 (+17% ) | Reco: Buy
>> Titan’s (TTAN) 1QFY21 results were broadly in line with estimates. Gold volumes declined by 81% during the quarter. However, decent recovery was seen in Jun’20 with Tanishq’s like-to-like growth declining 18% YoY. The recovery prospects in the jewelry segment (over 80% of sales) appear brighter with good demand in Jul’20 (101% of sales in Jul’19, albeit aided by weak base and significant activation in Jul’20) and first week of Aug’20 as well.
>> However, recovery in watches/eyewear is tracking slower than jewelry. Another impact of ineffective hedges on margins in 2QFY21 as well is expected. However, we believe there is a possibility that recovery in the jewelry business may take place in 3QFY21, instead of 4QFY21 as guided by management. However, given the volatile demand and COVID environment, we prefer to be conservative and are assuming recovery in 4QFY21.
>> Titan’s (TTAN) 1QFY21 results were broadly in line with estimates. Gold volumes declined by 81% during the quarter. However, decent recovery was seen in Jun’20 with Tanishq’s like-to-like growth declining 18% YoY. The recovery prospects in the jewelry segment (over 80% of sales) appear brighter with good demand in Jul’20 (101% of sales in Jul’19, albeit aided by weak base and significant activation in Jul’20) and first week of Aug’20 as well.
>> However, recovery in watches/eyewear is tracking slower than jewelry. Another impact of ineffective hedges on margins in 2QFY21 as well is expected. However, we believe there is a possibility that recovery in the jewelry business may take place in 3QFY21, instead of 4QFY21 as guided by management. However, given the volatile demand and COVID environment, we prefer to be conservative and are assuming recovery in 4QFY21.
8:31 AM
FII/FPI & DII trading activity on NSE, BSE and MSEI
8:28 AM
Rupee check
Source: Bloomberg
8:24 AM
Oil firms on US stimulus hopes, Asian demand recovery
>> Crude oil gained more ground on Tuesday, with prices underpinned by expectations of US stimulus and a rebound in Asian demand as economies reopen.
>> Brent crude added 7 cents, or 0.2%, to $45.06 a barrel. West Texas Intermediate U.S. crude rose 14 cents, or 0.3%, to $42.08 a barrel.
(Source: Reuters)
>> Brent crude added 7 cents, or 0.2%, to $45.06 a barrel. West Texas Intermediate U.S. crude rose 14 cents, or 0.3%, to $42.08 a barrel.
(Source: Reuters)
8:22 AM
SGX Nifty update
>> At 8:20 am, the index was at 11,364 level, up 70 points or 0.62%
Topics : Markets IndiGo Titan Company Bank of Baroda ICICI Bank Rites Ltd Motherson Sumi MARKET WRAP
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First Published: Aug 11 2020 | 7:26 AM IST
