MARKET WRAP: Sensex pares gains to end 45 pts up; financial stocks rally

All that happened in the markets today

2:10 PM

Rupee Closing

Rupee ends flat vs Monday's close at 74.32 per US dollar

1:58 PM

European indices trade higher in early deals

1:58 PM

Severe shock to consumption, economy will take longer to recover: RBI

High frequency indicators so far pointed to a “retrenchment in activity that is unprecedented in history,” the annual report said, adding, “the upticks that became visible in May and June after the lockdown was eased in several parts of the country, appear to have lost strength in July and August, mainly due to reimposition or stricter imposition of lockdowns, suggesting that contraction in economic activity will likely prolong into the second quarter.” READ MORE

1:48 PM

IRB Infra Developers advances 4% post Q1 results; here's what analysts say

The highway developer on Monday reported a consolidated net loss of Rs 30.13 crore for the quarter ended June, as against a consolidated profit of Rs 206.62 crore in the corresponding quarter of previous fiscal. Moreover, its profit before tax (PBT) tanked 99.2 per cent YoY to Rs 2.95 crore during the quarter under review as against Rs 387.17 crore in the year-ago period. READ MORE

1:33 PM

Nocil shares climb 9% despite a 64% drop in Q1 consolidated net profit

Shares of Nocil climbed around 9 per cent on the BSE on Tuesday even as the company reported a 64 per cent decline in its consolidated net profit at Rs 11.95 crore against Rs 32.88 crore profit in the year-ago period. Revenue from operations stood at Rs 106.51 crore, down 53.6 per cent year-on-year (YoY). Consolidated profit before tax (PBT) dropped 81.7 per cent to Rs 9.32 crore in Q1 2020 as against Rs 50.88 crore in Q1 2019. READ MORE

1:18 PM

Gold's record rally to boost Kalyan Jewellers' $235 mn IPO, say experts

Gold’s record-setting rally is set to give wings to the largest initial share sale by an Indian jeweler, helping it overcome tumbling demand in the second-biggest consuming nation. Kalyan Jewellers India Ltd. said Monday it plans to raise as much as Rs 17.5 billion ($235 million) through a public listing as it banks on the long-term appeal of gold, a staple of Indian weddings and a popular investment option in the country. READ MORE

1:12 PM

STOCK ALERT:: Adani Enterprises zooms 9%

1:02 PM

NEWS ALERT :: Have to move fast on cabinet cleared disinvestment, says FM Nirmala Sitharaman

12:58 PM

RBI balance sheet expands by 30 per cent in FY20 to Rs 533.27 trillion

The Reserve Bank of India’s (RBI’s) balance sheet expanded by 30.02 per cent to Rs 533.47 trillion in 2019-20 (FY20), on growth in foreign exchange reserves. On June 30, 2019 (FY19), the size of the bank’s balance sheet was Rs 410.29 trillion. RBI’s financial year commences in July and ends in June next year. But the current year (FY21) will end in March 2021 to enable a transition to start its financial year from April to end in March. So FY22 would run from April 2021 to March 2022. READ MORE

12:44 PM

Deepak Nitrite rises 9%, hits 52-week high; stock up over 100% in CY20

Shares of Deepak Nitrite extended their winning run and gained 9 per cent to a fresh 52-week high of Rs 825 on the BSE on Tuesday. The stock had already risen 18.5 per cent in the last two sessions as compared to Sensex's 1.5 per cent gain during the same period. At 11:46 AM, the stock had pared the day's gain and was trading 1.68 per cent lower at Rs 743.35. Around 58.13 lakh shares have changed hands on the NSE and BSE so far. READ MORE

12:32 PM

Globus Spirits nears 52-week high post Q1 nos; stock up 91% so far in FY21

"The Group has made an assessment of impact of the Covid-19 pandemic on going concern, and believes that the impact will be temporary. The assessment is based on budgets and financial projections, considering the nature of products and considering the impact of consumer consumption trend seen immediately in the demand outlook and the financial strength of the company," the company said in a statement. READ MORE

12:21 PM

BROKERAGE VIEW:: Emkay Global on Punjab National Bank

RATING: SELL | TARGET PRICE: Rs 29 

• PNB declared merged Q1 financials (PNB+ Oriental+ United) with a PAT of Rs 3bn, aided by high treasury gains and contained opex/provisions. Total Covid-19 provisions remain low at Rs10bn (16bps of loans), while PNB improved specific PCR by 180bps qoq to 65%.
• The GNPA ratio expanded 30bps qoq to 14.1% despite write-off and moderate slippages, due to a decline in the loan book by 6% qoq. For FY21, PNB has guided for slippages of Rs80-100bn, mainly from SMA-2 pool, and credit cost of 2-2.5%, which looks difficult to manage in the wake of elevated stress amid Covid-19.
• Nearly 29% of loans are under the moratorium as of June 30, however, PNB indicated that the moratorium rate has declined to 21% by July 31. The bank expects to restructure 5-6% of loans, where retail loans could be given the moratorium on principal.
• We retain our Sell rating and UW in EAP, with a TP of Rs 29 due to its traditionally weak asset quality and subdued return ratios. With CET 1 at a moderate level of 9.4%, we believe that PNB will have to raise capital soon as the onslaught on asset quality begins.

12:12 PM

BUZZING STOCK:: Adani Enterprises up over 6%

11:58 AM

BROKERAGE VIEW:: HDFC Securities on IRB Infra

IRB reported revenue at Rs 10.2bn, 15% ahead of our estimate. However, the company registered loss of Rs 301mn, marginally behind our estimated loss of Rs 276mn, on account of higher finance cost, taxes, and losses from the JVs/associates. Toll collection in June reached to 80% of June-19 level. Consolidated net debt stood at Rs 119bn, with net D/E at 1.75x. Including the order of Rs 17bn won in August-20, orderbook now stands at Rs 129bn. We maintain BUY on IRB with SOTP based target price of Rs 142/Sh.

11:52 AM

Hindalco: Better domestic show, Novelis outlook can help stock re-rate

Hindalco is one of the key Indian beneficiaries of the significant rebound in base metal prices on the London Metal Exchange (LME). The company has continued to report reasonable financial performance, despite the challenges posed by the Covid-19-triggered demand disruption and slowdown. READ MORE