Sensex gains 180 pts, broader indices outperform; Glenmark Pharma soars 27%

All that happened in the markets today

11:50 AM

IT stocks muted as US may announce foreign workers' visa restrictions today

At 11:13 am, the S&P BSE Information Technology index was trading 0.18 per cent lower at 14,509.47 levels, with Ramco Systems (down 5 per cent) being the top loser. Other top losers on the index were Zensar Technologies (down over 3 per cent), Cigniti Tech (down 3 per cent) and Intellect Design Arena (down over 2 per cent).

 

On the other hand, Mastek was trading over 5 per cent higher and was the top gainer on the index. READ MORE

11:40 AM

NEWS ALERT :: Sumit Bali may join Axis Bank as President (Retail Assets), reports CNBC TV18

>> Likely to join bank on July 2

>> Bali to replace Pralay Mondal who joined CSB Bank recently

Alert: Sumit Bali resigned from IIFL Finance on June 19

11:34 AM

Cipla hits 52-wk high on launch of generic remdesivir for Covid-19 patients

In May, Gilead Sciences Inc. extended a voluntary non-exclusive license to Cipla to manufacture and market Cipla’s generic version of remedisvir called 'Cipremi'. The company recently received the Drug Controller General of India (DGCI) approval for the same. READ MORE

11:25 AM

Arvind Fashions to garner nearly Rs 400 cr through a rights issue

Board of Directors of the branded apparel and retail company of the Arvind Group, Arvind Fashions Limited on Sunday approved re-launch of its rights issue with a revised issue size of up to Rs 399.79 crore.

 

Deferred earlier due to the lockdown and overall market conditions on account of the Covid-19 pandemic, the board approved the issue with a revised issue price and entitlement ratio. The issue will open on June 29 and close on July 17, 2020. READ MORE

11:17 AM

Nifty P/E multiple up 50% from lows of March on 'benign liquidity' in mkt

The continued rally on the bourses despite dismal economic data after the Covid-19 pandemic is widening the gap between index valuation and underlying fundamentals. At Friday’s close, the benchmark NSE Nifty50 index was trading at a trailing price-to-earnings multiple of 25.5x, about 50 per cent higher than its valuation on March 23, 2020, when it had closed at a three-year low of 7,610 points. READ MORE

11:10 AM

Fitch revises outlook on 9 Indian banks' IDRs from stable to negative

Global rating agency Fitch on Monday revised the outlook from “stable” to “negative” on the Long-Term Issuer Default Ratings (IDR) of nine Indian banks following revision in the outlook on India rating ('BBB-'). It affirmed rating on IDRs, Support Ratings (SR) and Support Rating Floors (SRF). The rating action covers nine banks - State Bank of India (SBI), Bank of Baroda (BOB), BOB’s subsidiary in New Zealand, Bank of India (BOI), Canara Bank (Canara), Punjab National Bank (PNB), ICICI Bank (ICICI), Axis Bank (Axis) and Export-Import Bank of India (EXIM). READ MORE

11:01 AM

RIL gains 2.5%, hits fresh record high; stock zooms over 100% in 3 months

Shares of Reliance Industries (RIL) hit a fresh all-time high of Rs 1,804, up 2.5 per cent, on the BSE on Monday, having surged 12 per cent in the past three trading sessions as the company become net debt-free ahead of its March 2021 deadline. In the past three months, the stock price of RIL has zoomed 104 per cent from its March low of Rs 883.85 hit on March 23, as compared to 35 per cent rise in the benchmark S&P BSE Sensex. READ MORE

10:51 AM

ICICI Bank gains over 3% after paring stake in ICICI Prudential Life

Shares of ICICI Bank rose 3.11 per cent to Rs 375.25 on the BSE on Monday after the bank sold 1.5 per cent stake in its life insurance arm ICICI Prudential Life for Rs 840 crore. In a statement to the exchanges, the bank said that purusant to the board's approval, "the Bank has today divested 21,500,000 equity shares of face value of Rs. 10 each of ICICI Prudential Life Insurance Company Limited, representing 1.50% of its equity share capital at March 31, 2020, on the stock exchange for an approximate total consideration of Rs. 8.40 billion." READ MORE

10:44 AM

I'm very bullish on EM equities for next few years, says Jan Dehn

Despite a series of policy measures undertaken by the Indian authorities to stem the economic fallout of the Covid-19 pandemic, London-based JAN DEHN, head of research at Ashmore Group, which has nearly $100 billion worth of assets under management, tells Puneet Wadhwa that India will not be able to attract overseas funds purely based on its fundamentals, as the government has lost much of its zeal for reform and is now leaning more on fiscal stimulus. READ FULL INTERVIEW HERE

10:35 AM

Sector Watch :: Nifty PSU Bank index up over 2%

10:27 AM

Explained: How Vodafone Idea can survive in the three-pronged battle

Can Vodafone Idea survive in a three-pronged battle in the private mobile services space? For the answer, consider this: Starting FY23 Vodafone Idea has the burden to pay an additional over Rs 9,200 crore annually that includes its AGR dues as well as the increase in the deferred spectrum payment, once the two-year moratorium offered by the government is over. READ MORE

10:23 AM

BROKERAGE VIEW:: Edelweiss Securities on Bajaj Consumer Care

Bajaj Consumer Care’s (Bajaj) Q4FY20 revenue, EBITDA and PAT dip of 28.6%, 69.6% and 59.6% YoY, respectively, came below our estimates. The company’s overall value market share in the hair oil category stood at 10.1% (~9.6% a year ago). Though all players are affected by COVID-19-induced lockdown, Bajaj’s performance is worse than peers—Dabur’s hair oil segment down 20.8% YoY and Marico’s Parachute down 8.0% YoY. Moreover, dividend of Rs 2/share is the lowest in the last decade primarily due to uncertain economic scenario. LLP prices fell ~5% YoY, which led to gross margin expansion of 200bps YoY. However, sharp spike in other expenditure (up 20.3% YoY) led to abnormally low EBITDA margin of 13.5%. Maintain ‘HOLD’.

10:22 AM

BROKERAGE VIEW:: ICICI Securities on Thermax

Thermax’ weak execution performance was a reflection of subdued order inflows, order backlog while margins further deteriorated due to some one-time higher operating expenses, Covid-19 that disrupted business activities. Expected orders in cement, pharma, food processing, refinery sectors orders would aid order inflows and order backlog. However, strong b/s, efficient working capital management provide a competitive advantage despite challenging environment. We expect adjusted revenue, EBITDA CAGR of 1.6%, 2.5%, respectively, in FY20-22E. Consequently, margins are expected to improve in long term on the back of easing commodity pressure and product innovations in medium term. We revise our target price to Rs 830 (30x on FY22E EPS) and revise our rating from BUY to HOLD.

10:16 AM

BROKERAGE VIEW:: ICICI Securities on Dalmia Bharat Sugar

With the nearly Rs 450 crore of cash flow generation and no capex in the near term, the company is likely to reduce its working capital debt by ~ Rs 300 crore in the next two years. Dalmia also has investments (current & non-current) of ~ Rs 400 crore in the books. Given stable earnings, reducing working capital debt & investments, the stock is trading at attractive FY21E earnings multiple of 4.5x. We value the stock at 6x FY21 earnings with a target price of Rs 150/share and with a BUY recommendation on the stock.

10:14 AM

BROKERAGE VIEW:: Prabhudas Lilladher on The Ramco Cements

Rating: HOLD | CMP: Rs 645 | TP: Rs 600

We continue to remain negative on Southern region due to overcapacity as well as challenging demand outlook. Admittedly, margins are expected to be strong in Q1FY20e due to sharp price increase. However, volumes would be equally weak due to extended lockdown in Tamil Nadu and severe shortage of labor in rest of states. Putting near time aside, we believe that TRCL’s earnings profile would continue to deteriorate with increasing exposure to low margin and volatile markets of AP/Telangana and East regions. Driven by expensive valuations and deteriorating B/S, we downgrade stock to HOLD with TP of Rs 600 (earlier TP of Rs 630) with EV/EBITDA of 13x FY22e.