D-St bucks weak global trends; Sensex up 230 pts; PSB, realty stocks gain

Adani Ports (up 5 per cent) was the top Nifty gainer today, trailed by NTPC, Titan, SBI, Tata Steel, Bajaj Finserv, Grasim, and HDFC

8:59 AM

Stocks to watch today

RIL: Saudi Aramco chairman and Governor of the Kingdom's wealth fund Public Investment Fund, Yasir Al-Rumayyan, may be inducted on the board of Reliance Industries (RIL) a precursor to a USD 15 billion deal, reports said.

 

PNB Housing Finance: In a rare regulatory move, Sebi has restrained PNB Housing Finance from going ahead with shareholders' voting on the proposed Rs 4,000 crore-deal with Carlyle group and directed the company to carry out the valuation process as per the relevant legal provisions.

 

NTPC: The company posted nearly three-fold jump in consolidated net profit to Rs 4,649.49 crore for March quarter 2020-21 on the back of higher revenues. The consolidated net profit of the company in the year-ago period was Rs 1,629.86 crore. READ MORE

8:58 AM

Kotak Institutional Equities has Sell call on Timken. Here's why

Reco: Sell | TP: 940

Timken India reported 4QFY21 EBITDA of Rs869 mn (-7% yoy), 22% above our estimate led by better-thanexpected revenue growth.

The company’s growth prospects remain strong due to pickup in industrial and CV segment demand, a strong order book in exports and steady demand in railways, however, we believe valuations are very expensive even after baking in strong growth prospects.

We have fine-tuned our FY2023 EPS earnings estimates. We have cut our FY2022 EPS estimates on lower EBITDA margin assumptions due to RM headwinds.

Valuations are very expensive at 32X FY2023E EPS even after building in strong revenue growth and improvement in profitability

8:55 AM

Kotak Institutional Equities on NTPC

Reco: Buy | TP: Rs 125

NTPC reported its best ever quarterly performance in 4QFY21 with 13% yoy growth in adjusted PAT to Rs38.3 bn leading to an all-time high adjusted PAT of Rs142.2 bn (+17% yoy) in FY2021. The earnings performance of the conventional business has been stable, however, the ambitious renewable capacity target of 60 GW by FY2032 (from 1.34 GW currently) will be the key to earnings growth going forward.

Maintain BUY rating with unchanged Fair Value of Rs125/share, noting inexpensive valuations at 0.8X P/B and 7X on P/E on FY2023E earnings. In our view, renewed aggression for solar capacities is a positive for the company, and helps them to diversify away from its current concentration in coal-based capacities, we will be watchful of the return profile in the same. We have marginally revised our earnings estimates downwards by 1.7%/1.9% for FY2022E/23E

8:54 AM

Kotak Institutional Equities raises target price on Power Grid

Reco: Buy | TP: Rs 260

Power Grid reported PAT of Rs35.2 bn (+24% yoy) in 4QFY21 and Rs 380 bn (+5% yoy) in FY2021 led by (1) asset capitalization of Rs195 bn (+28% yoy) with commissioning of Raigarh-Pugalur and, (2) higher other income on account of higher dividend of Rs6.5 bn (+120% yoy) from JVs/subsidiaries as well as late payment surcharge. New project wins under competitive bids partially address investor concerns on long-term growth.

We remain positive on Power Grid on account of (1) attractive valuations at 8X P/E and 1.4X P/B and dividend yield of 5%, (2) visibility on earnings growth trajectory as the company will capitalize on projects aggregating Rs446 bn over the next three years that will yield 8% CAGR in earnings up to FY2024E, and (3) incremental opportunities in intra-state and inter-state transmission. We have revised earnings for FY2022E by 3% primarily to factor higher other income on account of surcharges as well as marginal adjustments of core business earnings

8:51 AM

Sharekhan on Tech Mahindra

Reco: Buy | TP: Rs 1,250

Management indicated that the impact of weak seasonality in Comviva business would be lower in Q1FY2022 compared to earlier years. Margin would be impacted by wage revision, visa hike, and weak seasonality.

We expect Q1FY2021 deal win TCVs to be around 1.5x-2x higher than average quarterly deal win TCVs ($400 million - 500 million), but it would be lower compared to Q4FY2021 ($1.04 billion). The deal pipeline continues to remain healthy.

Management remains confident on delivering double-digit revenue growth in FY2022 due to strong growth in communication, BFSI, and manufacturing verticals. The company expects EBIT margin at 15%+ despite wage revision and return of travel expenses in 2HFY2022.

8:49 AM

Goldman Sachs on Bandhan Bank

Reco: Buy

Assam accounts for 12% of Bandhan Bank's overall MFI portfolio as of Mar'21. We calculate that should the above proposal be formalized, it could result in:

 

(1) Around Rs41bn worth of incentives to standard borrowers who have been regularly making payments, implying c.7% reduction in overall book.

 

(2) About Rs7bn from the pool that has turned delinquent post Jan'21, implying that about 1% of overall loan portfolio could get waived off.

 

(3) Bandhan had written off about Rs7.7bn of loans in the state of Assam in 4QFY21 and if the above proposal goes through, the bank could see significant recoveries from written off accounts amounting to 8% of FY22E PPOP/19% of FY22E LLP. However, while recovery of full amount is typical, we acknowledge that the amount recovered could also be lower.

8:46 AM

Vaishali Parekh is bullish on HUL, Piramal Enterprises

BUY HIND UNILEVER | CMP: Rs 2,482.90 | TARGET: Rs 2,700-2,800 | STOP LOSS: Rs 2,340

 

The stock has maintained a good support base near 2330 levels and recently has improved the bias with a strong move past the significant 50EMA level of 2360 and is anticipated for further upward move in the coming days. The RSI has given a decent momentum pickup, indicating strengthen and is well placed to support and justify our positive bias. We suggest to buy and accumulate this stock for an upside target of 2700-2800 keeping the stop loss of 2340. READ MORE

8:44 AM

Nifty outlook by Sameet Chavan

If we take a glance at the weekly chart of Nifty, we can see two back to back small body candles and this week's formation resembles a ‘Hanging Man’ pattern. Such a pattern requires confirmation in the form of breaking its low. Hence, it would be interesting to see how things pan out in the first half of this week. As far as levels are concerned, 15,820 – 15,880 can be seen as immediate resistances whereas, on the lower side, 15,550 – 15,450 – 15,400 are to be seen as support levels. READ MORE

8:40 AM

Bulk deals on the NSE as on Friday

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8:39 AM

Bulk deals on the BSE as on Friday

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8:37 AM

Results today :: A total of 70 companies are slated to post their quarterly numbers today

Click here for complete list

8:30 AM

Gap-down start on cards for Nifty

>> SGX Nifty traded over 200 points or 1.3% lower at 15,545 around 8.30 am

8:28 AM

Rupee check

Source: Bloomberg

8:26 AM

Oil edges up as Iran nuclear talks drag on

>> Oil prices nudged up on Monday, underpinned by strong demand during the summer driving season and a pause in talks to revive the Iran nuclear deal that could indicate a delay in resumption of supplies from the OPEC producer. Brent crude futures for August gained 30 cents, or 0.4%, to $73.81 a barrel, while US West Texas Intermediate (WTI) crude for July was at $71.96 a barrel, up 32 cents, or 0.5%.

 

>> Both benchmarks have gained for the past four weeks amid optimism over the pace of global vaccinations and a pick up in summer travel. The rebound has already pushed up spot premiums for crude in Asia and Europe to multi-month highs.

 

(Source: Reuters)

 

8:25 AM

Asian stocks drop

>> Asian stocks dropped on Monday as investors mulled the implications of a surprise hawkish shift last week by the U.S. Federal Reserve, while the Treasury yield curve flattened further with 30-year yields dropping below 2%. 

 

>> Japan's Nikkei led declines with a 3.3% drop and dipped below 28,000 for the first time in a month, while MSCI's broadest index of Asia-Pacific shares outside Japan fell 1% in early trading. Chinese blue chips opened 0.4% lower, and Australia's benchmark slid 1.8%.