MARKET WRAP: Sensex up 288 pts, ends above 39K; mid, small-caps outperform

All that happened in the markets today

9:20 AM

Sectoral trends at Open

9:19 AM

Top gainers and losers on S&P BSE Sensex at Open

9:18 AM

Opening Bell

9:17 AM

Opening Bell

9:09 AM

Commodity Heatmap

9:05 AM

Top gainers and losers on S&P BSE Sensex at Pre-Open

9:04 AM

Markets at Pre-Open

9:03 AM

Markets at Pre-Open

8:58 AM

Top stocks to watch out for today

SAIL: Domestic steel major SAIL on Monday posted a consolidated net loss of Rs 1,226.47 crore for the first quarter ended June 30, mainly on account of reduced income. The company had posted Rs 102.68 crore net profit in the year-ago quarter, Steel Authority of India Ltd (SAIL) said in a BSE filing.

 

Earnings today: A total of 642 companies including Vedanta, SpiceJet, and Future Enterprises are scheduled to announce their earnings today.

 

Reliance Industries (RIL): According to a Bloomberg report, investor demand for Reliance Industries Ltd’s retail business is so strong that Carlyle Group Inc and SoftBank Group Corp are among those that have been put onto a waiting list. READ MORE  

8:54 AM

Expert View :: Dr. Sunil Kumar Sinha, Principal Economist, India Ratings and Research on CPI data

August 2020 CPI inflation came in at 6.69% (July 2020: 6.73%, August 2019: 3.28%). Base effect will have a favourable effect now onwards on CPI inflation till January 2021. Consumer food prices although declined sequentially, they remained high at 9.05%. India Ratings expects with favourable monsoon and prospect of good kharif and rabi crops food inflation will ease from hereon.

Major contributors to food inflation have been pulses; egg; meat and fish; oils and fats; and vegetables. All these five commodities witnessed sharp increase in their inflation in September 2019 and base effect will provide some breather on inflation of these products. However, inflation of protein rich commodities such as pulses, egg, meat and fish etc. may remain firm due to people’s preference for these commodities to build immunity to fight COVID-19 pandemic.

Retail inflation in last five months have been in excess of 6%. Unless retail inflation in September 2020 declines sharply to around 4.5%, the retail inflation in three consecutive quarters will exceed 6% and monetary policy committee will have to respond to the government on the steps taken to keep inflation in 2%-6% range. Despite 1QFY21 GDP growth plummeting to -23.9%, India Ratings believes policy rates are unlikely to be cut in the forthcoming monetary policy

8:51 AM

Expert View :: Rumki Majumdar, Economist, Deloitte India on CPI Data

Over the past few months, inflation has been high due to supply disruptions. However, with every phase of the economic unlock being designed to limit economic disruptions, supply-side activities are resuming gradually. This is reflected in easing of consumer prices in August. Going forward, we expect prices to remain unchanged or decline slightly as the oncoming festival months may generate demand but not sufficiently enough to cause inflation.

8:45 AM

BROKERAGE VIEW :: Kotak Institutional Equities on Banks

>> RBI’s circular mandates (1) banks to implement automated processes for NPL identification and provisioning through use of IT systems, (2) board approved policy related to manual intervention with audit trails for supervision, (3) asset classification status is updated as part of day end process. As such, this guideline is unlikely to have meaningful earnings impact as we see it already in place but daily recognition is likely to result in higher movement in NPLs on the back of higher slippage and higher upgrade/recovery.

8:42 AM

BROKERAGE VIEW :: Kotak Institutional Equities on Dalmia Bharat

CMP: Rs 731 | Fair value: Rs 1,075 | Reco: Buy

>> Dalmia has concluded the acquisition of Murli Industries (3 mtpa cement capacity) under NCLT. It is progressing as per plan to reach 37 mtpa capacity and become the third largest in India by FY2022E. With access to 20 states, it is gradually elevating from the stature of a regional player. Notwithstanding the aggressive expansion, strong FCF is reducing leverage. The annual report details the focus on sustainability and consolidation of treasury. It is well-poised for a re-rating given growth visibility, improving balance sheet and attractive valuation.

8:38 AM

BROKERAGE VIEW :: MOFSL on SAIL

CMP: Rs 39 | Reco: Neutral

>> Standalone revenue declined 44% QoQ to INR90.7b (our estimate: Rs 93.7b) in 1QFY21.

>> Volumes declined 41% QoQ (32% YoY) to 2.2mt (our estimate: 2.2mt), weighed by weak domestic demand due to country-wide lockdown in 1QFY21

>> As a result, SAIL reported EBITDA loss of INR4.0b v/s EBITDA of INR19.5b in 4QFY20 (our estimate: loss of INR1.2b).

>> The company reported PBT loss of INR19.9b (our estimate: INR18.2b) and PAT loss of INR12.7b v/s adj. PAT of INR2.9b in 4QFY20.

>> We maintain a Neutral rating

8:28 AM

Nifty outlook & stock picks by Nilesh Jain of Anand Rathi

BUY NIFTY | TARGET: 11,550 | STOP LOSS: 11,320

 

As expected the Nifty index reached our short term targets of 11,550 levels on Monday. Earlier, it negated the formation of a lower top and lower bottom formation on the daily chart and also reclaimed its 21-DMA which is providing immediate support. The momentum indicators and oscillators on the weekly scale are very well on buy mode. Hence, one can re-initiate the long position with a stop loss of 11,320 levels for a pullback towards 11550 levels. READ MORE