MARKET WRAP: Sensex ends flat ahead of PM's address, Nifty closes at 10,302

All that happened in the markets today

12:22 PM

Gujarat Gas hits fresh all-time high; stock rallies 35% in a month

Shares of Gujarat Gas gained 5 per cent and hit a fresh all-time high of Rs 324 on the BSE on Tuesday after the oil regulator sanctioned the transfer of two geographical areas (GAs) from Gujarat State Petronet to the company. “The Petroleum and Natural Gas Regulatory Board (PNGRB) vide letter dated June 29, 2020 had accepted proposal for transfer of authorization of Amritsar District GA and Bhatinda District GA from Gujarat State Petronet to Gujarat Gas,” the company said in an exchange filing. READ MORE

12:12 PM

Global annual spend on PPE can hit $50-80bn; China key player: Jefferies

Post-pandemic, the PPE market, the Jefferies note says, could still be three times as big as pre-pandemic levels. PPE prices, in this backdrop, will remain elevated for the foreseeable future, even with a surge in Chinese manufacturing capacity and non-traditional players entering the market. It expects stricter hospital measures to be implemented, which includes PPE inventory level standards where institutions will likely be required to have at least three months of pandemic-level PPE stock available at all times. READ MORE 

12:08 PM

MARKET CHECK:: Top 5 gainers on the BSE at this hour

11:45 AM

MARKET UPDATE:: Sensex off day's high

11:37 AM

Vodafone Idea declines 4% ahead of Q4 results; here's what brokerages say

Brokerages are penciling in around 6 per cent growth in Vodafone Idea's Q4 revenue on a sequential basis, on the back of 12 per cent rise in average revenue per user (ARPU). While loss is expected to narrow for the quarter, the company may perform well on the operational front. READ MORE 

11:32 AM

BROKERAGE VIEW:: MOFSL on HDFC Bank

RATING: BUY | TARGET PRICE: Rs 1,250

We expect HDFCB to deliver strong business growth, led by improved digital offerings. On the asset quality front, although slippages are likely to remain elevated, impacted by COVID-19, strong provisioning buffers should limit the overall impact on earnings. The CEO’s succession remains an important observable in the

near term. Maintain Buy, with TP of Rs 1,250 (3.0x FY22E ABV).

11:30 AM

BROKERAGE VIEW:: LKP Securities on Endurance Technologies

We expect FY 21E to be a very subdued year on the back of Covid-19. However, despite a washout Q1, with a long line-up of order wins and strong RFQs for the remaining three quarters of FY 21E and FY 22E, we expect a very strong FY 22E. Increasing orders from existing clients, new businesses in both India and Europe, higher content per vehicle and capacity expansions at a low capex will result in a robust bump up in FY 22 numbers. Profitability lift up, improvement in return ratios will be the result of higher product mix and risen electrification & hybridization in Europe. Endurance derives about 66% of its consol topline from 2Ws and considering the rising importance of social distancing and personal mobility, we believe 2W industry to be preferred medium of transport and therefore Endurance shall be an attractive investment case. On the back of Covid and associated delay in various projects, we have pruned down our estimates and target price to Rs 1,105. Maintain BUY (valued at 25x FY 22E earnings).

11:27 AM

BROKERAGE VIEW:: Edelweiss Securities on Fine Organics

We expect FOIL’s large diversified product basket with exposure to food and the food packaging polymer industry to help it sail through the current uncertain environment. We expect a slow ramp-up of the new plant and weakness in margins to result in muted PAT growth of 8.7% in FY21E; it would bounce to 30% FY22E. We maintain the ‘HOLD’ rating with a TP of Rs 2,044 (27xFY22 EPS).

11:26 AM

BROKERAGE VIEW:: HDFC Securities on J Kumar Infraprojects

RATING: BUY | TARGET PRICE: Rs 138

JKIL delivered 22/(6)/(24)% 4QFY20 Rev/EBIDTA/APAT beat/(miss) as margins collapsed owing to lockdown impact, esp. in urban centers like NCR/MMR (~90% of order book). Labor availability is ~20% and is gradually ramping up, expected to normalize by 3QFY21E. We expect about 35-40% execution for 1QFY21 and 45-50% during 2QFY21 (YoY). Whilst order backlog is robust at 4x FY20 book/bill, near term execution challenges have sprung up as Metro/Tier-1 cities are the worst impacted due to COVID-19 in terms of labor migration. We have revised our FY21/22E Rev estimates by (23)/(0.5)% and APAT by (85)/(3.8)%. At 4.1x FY22E EPS, 1HFY21 losses/execution disappointment is already priced in. We expect re-rating to happen in near term as 3QFY21 will see major turnaround on profitability. We maintain BUY.

Key risks (1) Geographic concentration (2) Order conversion within estimated timelines (3) Extended lockdown (4) Prolonged monsoon.

11:24 AM

BROKERAGE VIEW:: ICICI Securities on Tata Steel

RATING: BUY | TARGET PRICE: Rs 594

Working capital release has allowed debt to stay flat QoQ. H2FY20 witnessed ~Rs80bn worth of working capital release and ~Rs140bn worth of cashflow from operations which allowed near constancy of net debt. Tata Steel has taken impairment of non- current assets in Europe, overseas mining as well as Indian investments resulting in Rs 34bn of exceptional loss for the quarter. Yet, surprisingly, a surge in OCI doesn’t impact the book value and consequently our valuations. We maintain BUY with an unchanged target of Rs 594/share.

11:23 AM

BROKERAGE VIEW:: ICICI Securities on Galaxy Surfactants

RATING: BUY | TARGET PRICE: Rs 1,684

Galaxy Surfactants’ (GSL) Q4FY20 volumes rose just 1.2% YoY, but gross margin expansion of 470bps YoY was a cheerful surprise. Margins benefited from higher-

value products in specialty, and better mix and lauryl alcohol price management. GSL sees retention of some of Q4FY20 margins if demand momentum sustains.

AMET remains a bright spot, but recovery in RoW and India is key to higher specialty sales, hence profit. GSL should benefit from the rising trend in cleansing product sales, which will drive sales of SLES, where it has a dominant market share. We cut our EPS by 19.5% / 7.1% for FY21E / FY22E, but increased our target price to Rs1,684 (from Rs1,630), implying 20x FY22E EPS (earlier: 18x).

11:12 AM

INDEX GAINERS:: NTPC gains over 2%

11:04 AM

Liquidity-led market rally sets stage for biggest quarterly gain in 10 yrs

The liquidity-driven rally also lifted shares of smallcap and midcap companies that are poised for their biggest quarterly gain in six years. Thus far in April- June quarter, the S&P BSE Smallcap index has rallied 29.8 per cent and S&P BSE Midcap index soared 23.7— the most since June 2014 quarter when it had gained 35.6 per cent and 32.4 per cent, respectively after the Narendra Modi-led government assumed power at the centre.  READ MORE

10:47 AM

ONGC gains 1% ahead of March quarter earnings; here's what to expect

Earlier this month, the state-run company said that it was looking at opportunities for optimising its capital and operational expenditures as the coronavirus pandemic has impacted the progress of its projects.

 

"The short term liquidity position was managed by raising short term borrowings to the extent required. The onset of Covid-19 itself will impact project progress to some extent and the Company is identifying opportunities for Capex and Opex optimisations," it said in a regulatory filing. READ MORE

10:36 AM

Investors cheer as nearly 90% of top-500 stocks log gains in June

Experts said what worked for the markets was favourable global investor sentiment and encouraging flows into the emerging markets following stimulus measures taken by central banks.

 

The broader-market Nifty Smallcap 100 index is up 16 per cent in June, while the Nifty Midcap 100 is up 11 per cent after giving up some gains. Both indices have outperformed the benchmark Nifty, which has risen 7.6 per cent month-to-date. READ MORE