MARKET WRAP: Sensex trims losses, ends 12 pts down; Nifty closes at 11,194

All that happened in the markets today

12:35 PM

Sun Pharma, Trent: 10 stocks that look bullish on moving average indicator

Broadly, three moving averages are considered while looking for short to medium-term trade. This includes 50-day moving average (DMA), 100-DMA, and 200-DMA. Among these, the 200-DMA is most applicable. It identifies the price movement from one year's perspective. Another way of analysing the trend is the position of the moving average. If one of the three averages show a strong rebound, then this may appear to be a major shift in the trend. READ MORE

12:20 PM

Earnings visibility poor for next few quarters: Dy CIO of Nippon India MF

Consolidation driven by balance sheet strength is visible in virtually every sector of the market, says Sailesh Raj Bhan, deputy chief investment officer (CIO)–equity investments, Nippon India MF. In an interview with Ashley Coutinho, he says mid and small-caps look attractive from a 3-5 year perspective. READ MORE

12:10 PM

Top losers on BSE at this hour

COMPANY	PRICE(rs)	CHG(%)
M & M FIN. SERV.	140.95	-5.15
FUTURE CONSUMER	9.50	-5.00
HERITAGE FOODS	306.85	-5.00
DISHMAN CARBOGEN	170.30	-4.99
FUTURE RETAIL	95.60	-4.97

12:00 PM

MARKET CHECK:: Sensex fails to recover from morning lows

11:51 AM

INEOS Styrolution tanks 20% as promoter rejects delisting discovery price

“The promoter, namely INEOS Styrolution APAC Pte. Ltd., has decided to reject the discovered price of Rs 1,100 per equity share, determined pursuant to the book building process, and has also decided not to make any counter offer in terms of Regulation 16(1A) of the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009, as amended (“Delisting Regulations”),” ICICI Securities said on behalf of INEOS Styrolution India. READ MORE

11:42 AM

BROKERAGE VIEW:: Centrum Broking on Crisil

CRISIL’s Q2CY20 overall results were a beat on the revenue front as all three segment revenues surprised positively though opex saw a sequential spike that led to a miss on consolidated PAT. Revenue beat was mainly led by research/ratings that rose by 17.6%/10.1% YoY. Excluding Greenwich, the research segment de-grew by 1.1%. Other income was down 1.0% YoY to Rs121mn (vs. est. of Rs172mn). Overall PAT for the quarter was a miss at Rs663mn that included Greenwich loss and excluding the same consolidated PAT was up 28.5% YoY. We like CRISIL owing to its global presence, strong parentage, diversified business profile, and geographic spread though recent price appreciation leaves limited upside. Change rating to ADD and raise TP to Rs 1,840.

11:41 AM

BROKERAGE VIEW:: Edelweiss Securities on Trent

Trent provides a unique opportunity to invest in four brands—Westside, Zudio, Zara, and Star Bazaar. We continue to remain structurally positive on Westside as well as Zudio. Star Bazaar is also showing improving trajectory. Brand salience and robust balance sheet add further comfort. Maintain ‘BUY/SO’ with a SoTP-based TP of Rs 726. At CMP, the stock is trading at 38x FY22E EV/EBITDA.

11:39 AM

BROKERAGE VIEW:: Prabhudas Lilladher on Rallis India

Rating: ACCUMULATE | TARGET PRICE: Rs 321

Despite weak topline growth, outlook on Rallis remains robust as it is on track for a healthy double-digit revenue CAGR. Domestic business growth is expected to be driven by new launches, the addition of new trade partners, relaxation in credit policies, the commencement of new capacity and a rosy outlook for domestic agrochemical industry. Similarly, International business growth is expected to be driven by capacity creation for Metribuzin (Phase 2). We roll forward to Sept’22 earnings, increase our EBITDA/APAT estimates for FY21 & FY22 by 8%/10% & 12%/9% and target multiple from 18x to 20x given better visibility of RALI being able to capitalise on the emerging opportunities. Maintain Accumulate rating with a revised target price of Rs 321 (Previous- Rs 246).

11:37 AM

BROKERAGE VIEW:: YES Securities on Sterlite Technologies

RATING: SELL | TARGET PRICE: Rs 95

We expect revenues to be under severe pressure in FY21 as a major part of the order book would only be executed during FY22 and beyond. The recent drop in fibre prices (on already low base) in China tender would impact global fibre price to some extent. We expect margins to be in 18-20% range for STL in the near to medium term. We largely maintain our estimates for FY22 and retain our SELL rating on the stock with a 12m TP of Rs 95 (9x FY22 PE multiple). Weak offtake of products, pressure on fibre price, increasing contribution of low margin services business would impact performance.

11:35 AM

BROKERAGE VIEW:: YES Securities on L&T

RATING: BUY | TARGET PRICE: Rs 1,203

While challenges for FY21 remain in terms of new orders, execution, and margins, we believe L&T is in a more favorable position than peers in a constrained liquidity environment. We like L&T as, i) Over 80% of the NIP (opportunity: Rs102trn over FY20-25) is addressable by L&T which makes it the best play on the government's planned uptick in Infra spending, ii) Market share gain in difficult times by leveraging its strong balance sheet, iii) Strong geographical diversification. Our FY21/FY22 earnings estimates remain largely unchanged as an 8%/4% increase in EBITDA estimates offset by an increase in finance & depreciation expenses. Retain BUY rating with SOTP based TP of Rs 1,203 given its inexpensive valuations (Trades at 1yr forward EV/EBITDA of 13x vs long term avg. of 14x), healthy order book (book/bill ~2.2x) & proven diversified execution capability.

11:32 AM

BROKERAGE VIEW:: ICICI Securities on HDFC AMC

RATING: BUY | TARGET PRICE: Rs 3,000

As HDFC AMC is the market leader, a faster decline of market share compared to industry pace does not bode well. Thus, a market share revival remains the key focus area, going forward. However, as HDFC AMC has been able to build a strong brand franchise due to strong parentage and delivered consistent returns in the past, it deserves a premium valuation. Given business model with least credit risk, long term growth potential and strong fundamentals, we remain positive on the stock. Thus, we maintain our target price at Rs 3,000/share and BUY recommendation on the stock.

11:31 AM

SBI Cards stock sees investor interest revival on hopes of faster recovery

The stock of SBI Cards and Payment Services (SBI Cards), which was hit by the pandemic-led market crash after its listing in March, has seen a revival in investor interest. With expectations of a faster recovery in business, it has recovered 27 per cent and is approaching its initial public offering (IPO) price of Rs 755. READ MORE

11:24 AM

Silver may test all-time high of Rs 75,000 a kg this year, say experts

This comes as investors look for a hedge against a possible rise in inflation as countries roll out stimulus packages in the wake of the Covid-19 pandemic. A weak US dollar and lower yields are also supporting prices, as escalating tensions between the two economic powerhouses are encouraging investors to buy US bonds. READ MORE

11:14 AM

Sebi allows OFS, rights entitlement transactions during trading window

Under market norms, listed companies need to use a trading window to monitor transactions by designated persons in a bid to prevent insider trading.

 

The compliance officer is responsible for closing the trading window, in case the designated persons are expected to be in possession of unpublished price sensitive information. READ MORE

11:05 AM

Mphasis rallies 9% on in-line June quarter earnings, new deal win

Shares of Mphasis rallied 9 per cent to Rs 1,072 on the BSE on Friday after the company’s April-June quarter (Q1FY21) earnings came in-line with Street estimate. Besides, signing of new deal worth $216 million deal in July 2020, in addition to the Q1 TCV declared wins worth $259 million, boosted sentiment. In constant currency terms, the company’s revenues fell 4.6 per cent quarter on quarter (QoQ) to $305 million. READ MORE