MARKET WRAP: Indices snap 5-day rally, Sensex slips 345 pts; IT, autos fall

All that happened in the markets today

9:24 AM

RIL trades mildly higher

>> Jio Platforms, the parent firm Reliance Jio, has received Rs 43,574 crore investment from Facebook for a 9.99 per cent stake in the company, Reliance Industries said in a regulatory filing on Tuesday. The deal between Jio Platforms and Facebook was announced on April 22.

9:22 AM

Titan Company gains 0.5% post Q1 update

9:20 AM

Sectoral trends on NSE at Open

9:19 AM

Sensex Heatmap at Open

9:19 AM

Opening Bell

9:18 AM

Opening Bell

9:05 AM

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

9:04 AM

Markets at Pre-open

9:02 AM

Markets at Pre-open

8:59 AM

BROKERAGE VIEW :: Motilal Oswal Financial Services on Titan

CMP: Rs 1,016 | TP: Rs 965 (-5%) | Reco: Neutral

>> Although recovery in the Jewelry division is encouraging, we are cautious on the near-term demand outlook in light of the ongoing COVID-19 crisis. Furthermore,

the likely lower share of High-Value Studded jewelry would weigh on profitability in FY21. Moreover, the management’s reluctance to reduce staff cost, while good for long-term growth, would have an adverse impact on nearterm profitability.

>> While we remain believers in TTAN’s structural top-line growth story, which remains one of the best among those of Indian consumer players, valuations are rich at 51x FY22E EPS, leading us to retain our Neutral rating.

8:57 AM

BROKERAGE VIEW :: Motilal Oswal Financial Services on Bajaj Finance

CMP: Rs 3,353 | TP: Rs 3,000 (-11%) | Reco: Neutral

BAF delivered another year of stellar performance in FY20. Given the current liquidity risks, the company focused on long-term borrowings and increased liquidity on the balance sheet (14% of borrowings). It also nearly doubled its public deposit base with tenure of most deposits at over 3 years. While we expect some slowdown in fee income traction for FY21, the long-term story remains intact.

Pressure on fees is likely to be compensated by sharp reduction in operating expenses in our view. The lower moratorium rate in June as compared to April is a key positive – hence, we reduced our credit cost estimates by 50/25bp to 3.9/3.1% for FY21/FY22. In our recent note, we have increased our EPS estimates by ~15%. Maintain Neutral with a TP of INR3,000 (4.2x FY22E BV).

8:56 AM

Stocks to watch: YES Bank, Titan, RIL, Zuari Agro, Maruti, BEML, APSEZ

Here's a list of stocks that may remain in focus today -

 

YES Bank: YES Bank has filed its prospectus with the Registrar of Companies (RoC) to raise about Rs 15,000 crore by launching a follow-on offer. The offer price band is likely to be in the Rs 12-15 range, and the offer might be launched as early as next week, said banking sources.

 

Titan Co: After suffering a complete erosion of sales in April due to Covid-19 lockdown, recovery for Titan has been better than originally foreseen on the back of higher share of wedding jewellery sales, good sales coming from GHS scheme, and investment-led demand leading to higher gold coin sales, said the company in a BSE filing on Tuesday. READ MORE 

8:54 AM

BROKERAGE VIEW :: Motilal Oswal Financial Services on Cummins India

CMP: Rs 430 | TP: Rs 330 (-23%) | Reco: Downgrade to Sell

We downgrade Cummins to Sell with lower TP of INR330 (from INR360) as we lower our target multiple to 15x from 16x earlier. We acknowledge that despite macro headwinds, the company has done a commendable job in FCF conversion, resulting in a strong balance sheet. Rental and dividend incomes have enabled the company to significantly increase dividend payouts over the years, owing to which it has one of the best payout ratios in the Capital Goods sector. However, the lack of growth drivers is yet to be fully factored in the valuations, in our view.

8:48 AM

Trading ideas by Religare Broking: Buy Axis Bank, Dabur India

Axis Bank Limited
 

Recommendation: Buy
 

Target: Rs 475
 

Stop loss: Rs 428
 

In line with other banking majors, AXISBANK has been consolidating in a broader range of 350-450 levels for the last three months or so. On Tuesday, it again reached closer to the upper band of the range. READ MORE

8:44 AM

Nifty may soon surpass 11,270 in the coming days: Vinay Rajani of HDFC Sec

Nifty is continuing its uptrend and looks all set to achieve the target of 11,270, which happens to be the 76.4% retracement of the entire fall seen from 12,430 to 7,511. There is a small hurdle of 200 days SMA, placed at 10,886 but the setup of momentum indicators suggest that Nifty would surpass the 200 DMA and will reach a target of 11,270 in the coming days. Trading longs can be held with the stoploss of 10,690. READ MORE