MARKET WRAP: Sensex up 420 pts as Infosys rallies 10%, Nifty ends at 10,740
All that happened in the markets today
 "Brokers trade at their computer terminals at a stock brokerage firm in Mumbai (")
Brokers trade at their computer terminals at a stock brokerage firm in Mumbai
9:20 AM
Opening Bell
9:19 AM
Opening Bell
9:11 AM
BROKERAGE VIEW :: Motilal Oswal Financial Services on Federal Bank
CMP: Rs 50 | TP: Rs 65 (+30%) | Reco: Buy
>> FB has reported moderation in loan/fee growth affected by the lockdown due to the COVID-19 pandemic. We expect (a) growth trends to remain modest due to the consumption slowdown, and (b) banks to become more cautious in lending to COVID affected sectors and certain retail/SME segments. However, the bank’s
liability franchise remains strong with CASA + Retail TD of 92% and with one of the highest LCRs amongst banks. On the asset quality front, we expect credit cost trends to remain elevated as slippages should increase sharply from 2HFY21. We estimate FB to report RoA/RoE of 0.8%/10.3% by FY22E. Maintain Buy with an unchanged TP of INR65 (0.8x FY22E ABV
9:09 AM
Top gainers and losers on the S&P BSE Sensex at Pre-open
9:08 AM
Markets at Pre-open
9:05 AM
Markets at Pre-open
8:58 AM
Stocks to watch: Infosys, Cyient, SBI, Cochin Shipyard, L&T Tech Services
Infosys: IT services major Infosys on Wednesday beat Street estimates with a 12 per cent rise in profit before tax (PBT), which stood at Rs 5,792 crore in the first quarter of the financial year 2020-21 (Q1FY21), boosted by steady performance in most business verticals and geographies, and healthy order flow.
L&T Infotech: Mid-size IT services firm Larsen & Toubro Infotech (LTI) reported a profit before tax (PBT) of Rs 558.9 crore, up 16.9 per cent year-on-year (YoY), while it remained flat on sequential basis, the company said in an exchange filing. The net profit for the quarter ended June 2020 (Q1FY21) rose 17.1 per cent year-on-year to Rs 416.4 crore on account of lower operating expenses. It, however, fell 2.6 per cent on a sequential basis. READ MORE
8:53 AM
BROKERAGE VIEW :: Motilal Oswal Financial Services on Oberoi Realty
CMP: Rs 371 | TP: Rs 444 (+20%) | Reco: Buy
>> MMR is one of the worst affected regions in the country due to the COVID-19 pandemic and is under strict lockdown since the second half of Mar’20. OBER’s concentration in the geography (presence of all its business segments in MMR) poses near-term challenges for the company owing to uncertainty around easing of the lockdown. However, the company’s balance sheet strength provides comfort.
>> We expect both residential and annuity segment’s momentum to pick up in FY22E, largely driven by the launch of the Thane project at end-FY21 and operationalization of the Borivali mall in 2HFY22E. Maintain Buy with a PT of INR444.
>> MMR is one of the worst affected regions in the country due to the COVID-19 pandemic and is under strict lockdown since the second half of Mar’20. OBER’s concentration in the geography (presence of all its business segments in MMR) poses near-term challenges for the company owing to uncertainty around easing of the lockdown. However, the company’s balance sheet strength provides comfort.
>> We expect both residential and annuity segment’s momentum to pick up in FY22E, largely driven by the launch of the Thane project at end-FY21 and operationalization of the Borivali mall in 2HFY22E. Maintain Buy with a PT of INR444.
8:49 AM
BROKERAGE VIEW :: Motilal Oswal Financial Services on Bandhan Bank
CMP: Rs 350 | TP: Rs 425 (+22%) | Reco: Buy
>> As economic activity staggers to a start in India, we are seeing steady improvement in collection trends. Bandhan’s collection efficiency in the MFI portfolio has
improved to ~73%; at the overall portfolio level, it has improved to ~76%. Thus, the incidence of moratorium availed has been declining. Furthermore, the bank holds INR17.7b total COVID-19-related / excess standard provisions (2.5% of loans) to manage higher delinquencies over 2HFY21. We maintain a Buy rating, with revised TP of INR425 (3.0x FY22E BV)
8:46 AM
BROKERAGE VIEW :: Credit Suisse on Bandhan Bank
Maintains 'Neutral',Target price: Rs 360
>> Up-fronted significant part of Covid-19 provisions
>> Better placed to absorb spike in credit costs
>> Up-fronted significant part of Covid-19 provisions
>> Better placed to absorb spike in credit costs
8:43 AM
BROKERAGE VIEW :: UBS on Infosys
Maintains 'Neutral' Target price: Rs 810
>> Q1 beats estimates
>> FY21 guidance a big positive
>> FY21 guidance should help narrow valuation discount to TCS
>> Will wait to see if its driven by better demand or share gain
>> Q1 beats estimates
>> FY21 guidance a big positive
>> FY21 guidance should help narrow valuation discount to TCS
>> Will wait to see if its driven by better demand or share gain
8:40 AM
BROKERAGE VIEW :: Nomura on Bandhan Bank
Downgrades to 'Reduce', Target price: Rs 325
>> Bank reported better-than-expected operating performance
>> Have built Covid-19 provisions of over 2 per cent of AUM
>> Improvement in collection trends to over 70% a positive surprise
>> Valuation at 2.7x June FY22E book leave limited room for comfort
>> Bank reported better-than-expected operating performance
>> Have built Covid-19 provisions of over 2 per cent of AUM
>> Improvement in collection trends to over 70% a positive surprise
>> Valuation at 2.7x June FY22E book leave limited room for comfort
8:29 AM
FII/FPI & DII trading activity on NSE, BSE and MSEI
Topics : Coronavirus Markets Infosys Bandhan Bank Bajaj Consumer Care State Bank of India SBI MARKET WRAP
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First Published: Jul 16 2020 | 7:33 AM IST
