MARKET WRAP: Sensex up 420 pts as Infosys rallies 10%, Nifty ends at 10,740

All that happened in the markets today

12:18 PM

BROKERAGE VIEW:: Anand Rathi Shares on Pharma sector

Drug shortages and market-share gains in existing products are likely to help US sales of the companies we cover to grow 3% to $415m. Alembic is likely to continue its strong run in the US, while Cadila is expected to report flattish sales.

 

The 9% depreciation of the rupee (to Rs 75.5 to the dollar) is expected to provide some cushion as, apart from the natural hedge, most pharma companies leave their position open and, hence, are likely to benefit.

 

Favourable macros and government policies are likely to drive strong structural growth in APIs and the CRAMS businesses as large pharma companies are now looking to diversify their raw material sources.

 

Top picks: Torrent Pharma, Ipca Laboratories, Suven Pharma

12:16 PM

BROKERAGE VIEW:: ICICI Securities on Federal Bank

With gradual unlocking of the economy, business growth is seen to be subdued in FY21E, post which pace should improve. With the management ruling out capital raising in near term, risk of dilution is taken care of. The bank intends to scale up provisions, going forward, which would take a toll on profitability. Accordingly, we expect PAT to dip 18% YoY to Rs 1,260 crore in FY21E but recover to Rs 1,755 crore in FY22E. We maintain HOLD and value the stock at 0.8x FY22E ABV with a revised target price of Rs 55. The ambiguity on extension of term of the current MD remains a near term overhang.

12:14 PM

IMF chief warns global economy 'not out of the woods,' dangers lurk

Global economic activity is picking up after an unprecedented decline this year due to the coronavirus pandemic, but a second major wave of infections could trigger more disruptions, the International Monetary Fund's top official said. IMF Managing Director Kristalina Georgieva said the fiscal costs of actions aimed at containing the pandemic and mitigating its economic fallout were driving up already high debt levels, but it was premature to start withdrawing needed safety nets. READ MORE

12:07 PM

NEWS ALERT :: SBI Cards & Payment Services appoints Ashwini Tewari as MD & CEO

>> The Board, at the meeting held on July 15, approved the following: 

11:55 AM

DMart slips 15% in 4 days, hits over 3-month low on weak Q1 earnings

Shares of Avenue Supermarts, which runs the DMart chain of stores, were trading lower for the fourth straight day, falling 8 per cent to Rs 1,981 on the BSE on Thursday after the company reported a sharp 34 per cent fall in revenues in the June quarter (Q1FY20). The stock has fallen below its qualified institutional placement (QIP) issue price of Rs 2,049 per share. READ MORE

11:46 AM

Infosys, Wipro, TCS: Charts suggest more upside potential for IT stocks

Shares of IT companies jumped up to 12.5 per cent on Thursday after sector majors Infosys and Wipro reported better-than-expected results for the quarter ended June 2020 (Q1FY21). The Nifty IT index advanced over 5.5 per cent to 17,373 levels with 9 out of 10 constituents trading in the green. READ MORE

11:33 AM

NEWS ALERT :: Cadila Health receives sANDA approval from US FDA for manufacturing of Doxycycline Injection

>> Zydus Cadila has received approval for its supplemental Abbreviated New Drug Application (SANDA) for Doxycycline Injection USP, 100 mg/Vial from the US FDA. 

>> The product will be manufactured at Cadila Healthcare Ltd’s injectable facility at Jarod, Vadodara (formerly known as Liva Pharmaceuticals Ltd). 

(Source: BSE filing)

11:28 AM

How to use technical analysis to spot overbought and oversold stocks

Overbought and oversold conditions, categorised as such according to the position of a stock price / market level with respect to a certain threshold, can be a psychological trigger for traders to either enter or exit the security and even markets. The categorisation can be on the basis of either fundamental or technical analysis. READ MORE

11:18 AM

ICICI Securities hits fresh all-time high; stock surges 38% in a month

ICICI Securities, a subsidiary of ICICI Bank, is a technology-based firm offering a wide range of financial services including investment banking institutional broking retail broking private wealth management and financial product distribution. It is one of the pioneers in the e-brokerage business in India. READ MORE

11:09 AM

Yes Bank FPO: Anchor demand indicates Rs 15,000 crore a tall ask for lender

Yes Bank on Tuesday allotted Rs 4,100 crore shares to a dozen institutional investors in the anchor category. Yes Bank’s FPO size if Rs 15,000 crore. Half this is meant for so-called qualified institutional buyers (QIBs) and 60 per cent of QIB portion can be allotted to anchor investors. As a result, up to Rs 4,500 crore worth of shares were available under the anchor book. Also, a third of the anchor book---Rs 1,500 crore—is reserved for domestic MFs. However, barely any MF bid for shares in the anchor category. READ MORE

11:00 AM

Infosys ripe for re-rating after strong performance in June quarter

Infosys’ June 2020 quarter (Q1) results are the best, so far, in the sector, not only in terms of the firm beating the Street’s expectations but also the management's revenue guidance. And this improves the earnings and re-rating potential of the stock. READ MORE

10:50 AM

Google stake in Jio, 5G plans: How brokerages interpreted RIL's 43rd AGM

Giving a sense of the cutting edge technology from the RIL stable, Mukesh Ambani said in the company’s 43rd AGM on Wednesday that homegrown 5G solutions would be available for trials as soon as spectrum was given out. It could be ready for field deployment next year. That apart, Google picked up 7.7 per cent stake in the company for Rs 33,737 crore. However, the deal with Saudi Aramco for its oil-to-chemicals (O2C) business segment has not yet fructified, which seems to worry the markets. READ MORE

10:40 AM

NEWS ALERT :: Govt puts imports of power tillers & components in restricted list

>> Power tiller importers will have to apply for import licence

>> Licence to be given only for 10% of imports by a firm

>> Power tiller importers need to have infra for post sals services and spare parts

>> Only manufacturers to be eligible for applying for import licence

10:35 AM

L&T Infotech rises 6%, hits new high as June quarter profit rises 17% YoY

Shares of Larsen & Toubro Infotech (LTI) rose 6.58 per cent to hit a fresh all-time high of Rs 2,340 on the BSE on Thursday after the mid-size IT services firm reported a 17.1 per cent year-on-year (YoY) rise in consolidated net profit for June quarter (Q1FY21) at Rs 414.6 crore on account of lower operating expenses. READ MORE

10:22 AM

BSE IT index hits record high on strong Q1 show by Infosys, L&T Infotech

The IT index surpassed its previous high of 16,586 recorded on February 19, 2020. In comparison, the S&P BSE Sensex was up 0.13 per cent at 36,098 points at 09:34 am.

 

Infosys, Tata Consultancy Services (TCS), HCL Technologies and Larsen & Toubro Infotech from the BSE IT index have hit their respective record highs, while Persistent Systems and Mphasis hit 52-week highs today. READ MORE