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

All that happened in the markets today

8:54 AM

BROKERAGE VIEW :: Motilal Oswal Financial Services on AU Small Fin Bank

CMP: Rs 757 | Reco: Buy

AUBANK reported strong earnings, led by robust treasury performance and controlled opex, even as it prudently made additional COVID19 provisions and improved PCR to 64%. Also, sharp decline in the moratorium book, decline in SMA numbers, and improving collection trends eased concerns around asset quality. However, we remain watchful of recovery trends over the near term. On the business front, deposit growth has held strong, which, along with other measures, has enabled the bank to maintain strong surplus liquidity and LCR of 150%. 

8:53 AM

BROKERAGE VIEW :: Motilal Oswal Financial Services on L&T

CMP: Rs 916 | TP: Rs 1,080 (+18%) | Reco: Buy

Despite a weak outlook on revenue and margins in FY21E, we do not see FCF for the core E&C business turning negative from hereon. This is because we expect

the company to choose working capital management over revenue growth.

L&T’s results suggest a tough macro environment for the Construction industry and likely survival challenges for debt-ridden companies. We expect L&T to emerge stronger in the post-COVID-19 era and further consolidate its market share in the Indian Construction industry.

While challenges related to order inflows, execution, and working capital cannot be completely ruled out yet, L&T has demonstrated a good show in mitigating such risks thus far. Building in further conservatism, we cut our EPS estimates by 4–5% over FY21/FY22 and TP to INR1,080 (prior: INR1,120). Adj. for valuations of subsidiaries (we apply 20% holding company discount to market cap of 4- listed entities), the core business has underperformed Nifty by ~20% since the 4QFY20 results (June first week). In our view, current valuations provide limited downside risks from hereon. Maintain Buy

8:48 AM

BROKERAGE VIEW :: Motilal Oswal Financial Services on Trent

CMP: Rs 590 | TP: Rs 620 (+5%) | Reco: Downgrade to Neutral

Trent’s relative balance sheet strength has resulted in sharp stock outperformance despite near-term earnings headwinds. While its superior execution and healthy

balance sheet do warrant premium valuations, the current challenging environment and weak disposable incomes could impact discretionary spend, leading to prolonged earnings recovery. We estimate FY21 revenue/EBITDA decline of 10%/25% (despite the recent strong footprint addition) before recovery would set in

over FY22. We value Westside and Zara at 35x EV/EBITDA (five-year average multiple and 25% premium to our retail universe given its better execution and

balance sheet) and Star at 1x EV/sales on FY22E. Thus, we arrive at TP of INR620, leaving limited upside. Subsequently, we downgrade to Neutral from a Buy rating.

8:44 AM

SGX Nifty Update | Index extends slide, down 98 points now at 11,130 level

8:43 AM

Bata India, McDowell: Stocks that Nilesh Jain of Anand Rathi is bullish on

BUY BATAINDIA | TARGET Rs 1,370 | STOP LOSS: Rs 1,280

 

The stock is on the verge of a breakout from a downward sloping trend line which is placed at 1,324. It is also taking the support of its short term 21-DMA which is placed at 1,300 levels. The MACD has provided fresh buy crossover on the daily chart. The momentum indicator RSI is also making a higher highs and higher lows from the lower levels, which hints that the current rally is likely to continue further. READ MORE

8:40 AM

Here's a derivative strategy on Apollo Hospitals by HDFC Securities

Buy Apollo Hospitals 1,540 Call at Rs 45 & simultaneously sell 1,600 call at Rs 23

 

Lot Size: 500

 

Cost of the strategy: Rs 22 (Rs 11,000 per strategy)

 

Maximum profit: Rs 19,000 If Apollo Hospital closes at or above 1,600 on Jul expiry)

 

Breakeven Point: Rs 1,562 READ MORE

8:37 AM

Outlook on Gold, Silver and Crude by Bhavik Patel of Tradebulls Securities

Gold bulls are in a rush to make all time high in COMEX. Gold is sustaining above $1850 and is very near to all time high of $1920. In all other currencies, gold is trading at all time high. In short term, prices are overbought so any short term or intra-day traders should wait for any meaningful correction before entering the market and investors with horizon of 2-3 years can buy from current levels too. In MCX, next target comes around Rs 52000 where gold will see some pullback as it has rallied one way in relative short period of time. READ MORE

8:34 AM

Bulk deals on NSE as on Thursday

Click here for complete list

8:32 AM

Bulk deals on BSE as on Thursday

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8:30 AM

FII/FPI & DII trading activity on NSE, BSE and MSEI

8:28 AM

Rupee check

Source: Bloomberg

8:24 AM

Oil rises on weaker dollar, but virus woes and US-China tensions weigh

>> Oil edged up on Friday as the dollar fell to an almost two-year low, although demand concerns stemming from rising coronavirus cases and U.S.-China tensions kept a lid on prices.

>> Brent crude rose 15 cents, or 0.4%, to $43.46 a barrel, and U.S. West Texas Intermediate (WTI) crude rose by 12 cents, or 0.3%, to $41.19.

(Source: Reuters)

8:19 AM

SGX Nifty hints at a gap-down start

>> At 8:18 am, the index was at 11,162.50 level, down 54.85 points or 0.49 per cent

8:14 AM

Asia trades lower

Source: Reuters

8:09 AM

Wall Street closes sharply lower on tech selloff

Source: Reuters