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

All that happened in the markets today

10:50 AM

Most active stocks by volume

COMPANY	PRICE(rs)	CHG(%)
VODAFONE IDEA	8.38	4.62
FUTURE CONSUMER	11.15	4.69
FUTURE RETAIL	113.85	-1.94
INDIABULLS HOUS.	184.60	-7.63
ST BK OF INDIA	189.95	1.82

10:43 AM

Lakshmi Vilas Bank freezes at 5% lower circuit on Rs 112 crore Q1 loss

Shares of Lakshmi Vilas Bank were locked in the 5 per cent lower circuit band of Rs 19.7 apiece on the BSE on Friday the lender reported its April-June quarter result on Thursday post market hours. The bank reported a net loss of Rs 112 crore for the June quarter of FY21 after reporting a net profit of Rs 92.86 crore in the March quarter of FY20. In the year-ago quarter (Q1FY20), its loss was at Rs 237.25 crore. READ MORE

10:36 AM

Essel Propack jumps 18% after Q1 net profit rises 14% YoY to Rs 46 crore

Shares of Essel Propack zoomed as much as 18 per cent to Rs 242 apiece on the BSE on Friday after the company reported a 14 per cent increase in its consolidated net profit at Rs 45.62 crore for the June quarter. The company had logged a profit of Rs 40.03 crore in the corresponding quarter of the previous fiscal. At 10:12 am, the stock was quoting nearly 16 per cent higher at Rs 237.70 on the BSE. In comparison, the benchmark S&P BSE Sensex was trading at 37,623, down 113 points, or 0.3 per cent. READ MORE

10:28 AM

Tata Motors trades flat ahead of Q1 earnings; here's what to expect

Shares of Tata Motors were trading almost flat ahead of its financial results for the quarter ended June 30, 2020. Analysts are expecting over 50 per cent year-on-year (YoY) fall in the company's overall revenues while consolidated net loss may widen to as high as 9,810 crore, owing to sharp fall in volumes due to the Covid-19 induced lockdown. READ MORE

10:19 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. READ MORE

10:09 AM

Torrent Pharma leaps 10%, nears 52-wk high as Q1 net profit jumps 49% YoY

Shares of Torrent Pharma rallied as much as 9.7 per cent to Rs 2,675.35 on the BSE on Friday after the pharmaceutical company's consolidated profit before tax jumped 44 per cent to Rs 402 crore in April-June quarter of FY21 (Q1FY21). The company's PBT in corresponding quarter last year stood at Rs 279 crore. The stock was trading close to its 52-week high level of Rs 2,679.45, touched on April 9, 2020. READ MORE

10:02 AM

Rupee Opening

Rupee opens stronger at 74.75 per US dollar vs Thursday's close of 74.84/$

9:57 AM

RIL slips nearly 2% after June quarter result; here's what brokerages say

At 09:39 am, the stock was trading over 1.63 per cent lower at Rs 2,074 on the BSE. In comparison, the S&P BSE Sensex was trading 32 points or 0.09 per cent higher at 37,768 levels. During the session, the stock hit a low of Rs 2,070.70 against Thursday's close of 2,108.65. RIL's shares had hit an all-time high of Rs 2,198.70 on July 27 whereas its 52-week low stands at Rs 867.82, touched on March 23, 2020. READ MORE 

9:44 AM

Volume toppers :: BSE 500

COMPANY NAME	LATEST	CHG (rs)	CHG(%)	VOLUME
VODAFONE IDEA	8.28	0.27	3.37	14309625
FUTURE CONSUMER	10.85	0.20	1.88	1660216
FUTURE RETAIL	110.30	-5.80	-5.00	766591
INDIABULLS HOUS.	190.80	-9.05	-4.53	705412
ST BK OF INDIA	189.95	3.40	1.82	396256

9:41 AM

Emkay Global on auto sector

We expect volumes to improve in the coming quarters on: 1) low base and pent-up demand; 2) better rural sentiment; and 3) gradual improvement in economic activity. Our top picks are Mahindra & Mahindra, Eicher Motors and Ashok Leyland

9:40 AM

Edelweiss on steel sector

HRC prices continued their up-move recently. i) Domestic prices rose INR900–1,500/t across the board except south. ii) International prices edged up USD7–10/t across regions. On the longs front, we see secondary rebar prices rising 3.5% vis-a-vis last week owing to an increase in pellet prices. In our view, this would show up in primary rebar prices as well. Going ahead, we expect spreads to improve further as price hikes are complemented by lower coking coal prices. We retain our preference for flats players. Maintain ‘BUY’ on Tata Steel (target price: Rs 450; 6.2x FY22E EBITDA); it is our preferred pick in the ferrous space owing potential for earnings improvement at both domestic and overseas operations

9:39 AM

COMMENT :: Chris Wood of Jefferies on gold

One undoubted reason for gold’s latest surge is the renewed weakness in the US dollar. The weakening US dollar is good news for owners of gold and related precious metals. It is also good news for emerging market equities. For now GREED & fear’s assumption is that the US dollar has peaked with the core risk to that assumption a feared second wave involving a renewed surge in deaths and not just cases.

 

Another reason gold has rallied is declining US dollar real rates. The technical point to be aware of about gold is the potential for a price spike caused by a short squeeze on the bullion banks that make a market in gold. The data shows that owners of gold futures are increasingly opting to take delivery of physical gold as futures contracts expire.

 

The risk of such a short-squeeze triggered spike in the gold price, as well as the potential threat to Fed credibility suggested by the weakening US dollar, are reasons why a conservative GREED & fear would be wary of owning gold or gold shares on too much leverage right now. This is because intervention can happen at any time. Still for the moment investor positioning on gold looks far from extreme.

(Source: GREED & fear, Wood's weekly newsletter ti investors)

Christopher Wood

9:36 AM

Nomura on CEAT

CEAT trades at ~6.6x FY22F EV/EBITDA, which we find expensive. Rising debt, high capex spend and entry into competitive segments will likely keep ROEs subdued over the next two years. Hence, we maintain our target EV/EBITDA at 6x (lower end of the historical trading band of 6-9x) on average FY22F-23F EBITDA, to arrive at our raised target price of Rs 801. We reaffirm Reduce. We prefer Balkrishna Industries (BIL IN, Buy).

9:36 AM

STOCK ALERT :: Infosys hits all-time high

9:35 AM

Nomura on Maruti Suzuki (MSIL)

We value MSIL using 25x (unchanged) core FY22-23F average EPS (Rs 184), which is at the upper end of our expected trading band. We roll forward our valuation from Jun-22F to Sep-22F and add Rs 1,548 cash/share. Since current valuation is already at our target level, factoring in full recovery, we maintain Neutral. We prefer M&M (MM IN, Buy) as our top pick in the sector