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

All that happened in the markets today

12:54 PM

Sanofi India: Sturdy balance sheet, cash-generation augur well for company

Sanofi India posted a 20 per cent growth in profit before tax (PBT), before exceptional items, for the June quarter (Q2) of calendar year 2020 (CY20), despite the lockdown leading to lower revenue. While some therapy areas were impacted in Q2, Sanofi completed the slump sale of its Ankleshwar manufacturing facility and some of its products. READ MORE

12:48 PM

Zydus Wellness gains 6% as Co's PAT grows 10% YoY in Q1

12:41 PM

Dabur's aggressive focus on healthcare products is paying off

At a time when the non-food FMCG (fast-moving consumer goods) category has been severely impacted, Dabur not only reported better-than-estimated volumes in the June quarter of financial year 2020-21 (Q1FY21), but it saw an improvement over the previous quarter. Compared to a decline of 14.6 per cent in volumes in Q4FY20 and similar expectations for Q1, Dabur’s domestic volumes were down only 9.7 per cent in the recently concluded quarter. READ MORE

12:30 PM

RBI likely to leave repo rate unchanged in August policy meet: Report

"We believe an August rate cut is unlikely. We believe that the MPC could now well debate what further unconventional policy measures could be resorted to in the current circumstances to ensure financial stability is continued to be addressed," an SBI research report- Ecowrap said. READ MORE

12:24 PM

Nasdaq-beating market rally sends BSE IT Index to a record high

The 50-member S&P BSE Information Technology (BSE IT) Index jumped to a record high this week, taking its advance since the end of March to more than 40 per cent, and eclipsing the tech-heavy US gauge’s 36 per cent gain in the period. READ MORE

12:16 PM

NEWS ALERT :: PNB to infuse Rs 600 cr in PNB Housing Finance via preferential/rights issue

(Source: BSE filing)

12:11 PM

Direct market access in exchanges will pose higher systemic risk: Brokers

Since the buzz on DMA floated on the Street this week, share price of the listed brokerage ICICI Securities is down over 15 per cent. Geojit Financial Services is down over 7 per cent, while IIFL Securities and discount broker 5Paisa Capital are down 7.4 per cent and over 18 per cent, respectively.

 

“If there is a client default, the onus is on the brokerage firm and not on the exchange. If exchanges, as one large entity, were to take such a risk it would be systemic and put everyone participating in the markets at risk on an extremely volatile day (like in 2008),” said Nithin Kamath, co-founder and chief executive officer (CEO) at Zerodha, the country’s largest broking house in terms of active clients. READ MORE

12:02 PM

Zee Ent, GAIL India, Bharti Infratel may be excluded from Nifty: Report

Stocks of Zee Entertainment, GAIL India, and Bharti Infratel could be excluded from the Nifty50 when the index is reconstituted next, suggests a July 30 report by IDBI Capital authored by A K Prabhakar, head of research at the Mumbai-based brokerage co-authored with Dhartikumar Sahu. These three stocks, according to IDBI Capital, are likely to pave way for SBI Life Insurance, Divi’s Lab, and Dabur India. READ MORE

11:50 AM

NEWS ALERT :: SC bars registration of BS-IV vehicles till further orders

>> SC's Justice Arun Mishra-led bench expresses anger over large number of BS-IV vehicles sold in March 2020, says something 'fraudulent' may have taken place

(Via CNBC TV18)

11:46 AM

Ipca Lab hits 52-week high; stock surges 9% in 3 days

In the June quarter of FY21, insurance companies raised stake in the company from 2.22 per cent stake, held at the end of Q4FY20, to 4.23 per cent. HDFC Life held 2.3 million shares, representing 1.82 per cent stake, while SBI Life held 1.4 million shares, representing 1.1 per cent stake, in the company at the end of June quarter, shareholding pattern data shows. READ MORE

11:37 AM

Pharma stocks trade higher in an otherwise volatile market

COMPANY	LATEST(rs)	CHG(%)
SUN PHARMA.INDS.	515.15	1.02
GLENMARK PHARMA.	446.30	1.09
CIPLA	703.15	2.51
CADILA HEALTH.	379.70	3.89
BIOCON	408.60	1.29

11:25 AM

China's positive GDP growth rate may take a bite out of India's FPI flows

The IMF has projected a positive GDP growth rate for China in CY20, while estimating a 4.5 per cent contraction for India this financial year. China’s economy grew 3.2 per cent in the second quarter, following a slump of 6.8 per cent in the first, according to its National Bureau of Statistics. This was driven by its success in controlling the outbreak and policy support from the government. Various agencies have pegged India’s FY21 growth between 1.3 per cent and -9.5 per cent. READ MORE

11:19 AM

BROKERAGE VIEW:: Emkay Global on Torrent Pharma

RATING: SELL | TARGET PRICE: Rs 2,250

 

We raise FY21/22/23E EPS by 25 per cent /11 per cent /10 per cent and increase the TP to Rs 2,250, valuing the stock at 25x (unchanged) Jun’FY22E EPS (adjusting Rs 8/share amortisation costs. We have extended the amortization period for Unichem/Elder from 15 years to 30 years). We retain Sell and UW in sector EAP. 

11:08 AM

BROKERAGE VIEW:: Edelweiss Securities on CEAT Ltd

CEAT’s Q1FY21 standalone EBITDA of Rs 993 mn surpassed our estimate ~80% riding a 24% revenue beat. This was owing to stronger-than-expected replacement demand (likely to have gained share). Key call highlights: 1) Strong recovery in replacement demand (2W and PV were positive YoY in July) unlikely to sustain given current economic scenario. 2) Targeting ~15% permanent cost reduction. 3) RoE target could be postponed due to a weak demand environment (expects sustained turnaround only from Q4FY21). 4) Capex intensity to ebb and can turn FCF positive if demand normalises. While revenue growth will be cushioned by revival in OEMs (easing restrictions in urban areas, channel filling, new order wins) and export demand, we expect a lower share of replacement demand to adversely impact margin. Tracking the beat, we marginally revise our estimates, Maintain ‘BUY’ with revised TP of Rs 1,019 (Rs 977 earlier) valuing it 12x March 2022E EPS. 

10:55 AM

SBI Q1FY21 preview: Stake sale gain from SBI Life to cushion Covid-19 blow

Analysts at Phillip Capital expect the slippages to be contained, around Rs 8,300 crore, given the moratorium extended by the Reserve Bank of India (RBI).

 

On the whole, gross non-performing asset (GNPA) ratio is seen between 5.9 and 6 per cent, down from 6.2 per cent sequentially and 7.5 per cent YoY. Net NPA (NNPA) ratio, meanwhile, is seen at 2.1 per cent. READ MORE