MARKET WRAP: Sensex gains 499 pts as financials rally, Nifty ends at 10,430

All that happened in the markets today

12:06 PM

New stamp duty charges from July 1: What changes for mutual fund investors

Mutual fund (MF) investors are bracing for lower returns after the introduction of stamp duty charges from July 1. A stamp duty of 0.005 per cent will be levied on issuance of units, and 0.015 per cent on transfer of MF units. An issue of units includes purchase, switch-in and dividend reinvestment, whereas a transfer implies off-market transactions. READ MORE 

11:58 AM

NEWS ALERT :: Explosion at boiler of NLC India's Neyveli plant, 17 Injured, reports ANI

11:51 AM

MARKET UPDATE:: Sensex edges higher

11:45 AM

NEWS ALERT :: Fujifilm to partner with Dr Reddy's to bring Avigan to India

>> Favipiravir, sold under the brand names Avigan, Abigan and FabiFlu, is an antiviral medication

(Source: Reuters)

11:37 AM

BROKERAGE VIEW:: ICICI Securities on Petronet LNG

RATING: HOLD | TARGET PRICE: Rs 259

Management expects utilisation at 100% in FY21E. We have cut Kochi volume and ‘other income’ estimates. Net impact is cut in FY21E EPS by 8% and target price by 2% to Rs259. Further cut in Kochi terminal regas charge is a near-term risk. Fall in Dahej volumes due to rise in LNG import capacity in Gujarat and domestic gas output rise is a medium term concern. Clarity is also awaited on possible investment in Tellurian. Retain HOLD.

11:35 AM

ICRA on coal mining sector

• As per ICRA’s latest report on the coal mining sector, the domestic coal demand is estimated to increase at a modest compounded annual growth rate (CAGR) of 2.9%  between FY2021 and FY2027. This is much lower than the CAGR of 5.2% registered between FY2013 and FY2020.
• The timing of the recovery in the global economy is uncertain and expected to be prolonged, due to which the demand growth of natural gas is expected to remain muted over the medium term
• Domestic CGD companies are expected to gain and roll out networks in a large number of GAs, the low spot gas prices to compel industrial and commercial consumers to convert from alternate fuels.

11:33 AM

BROKERAGE VIEW:: YES Securities on Finolex Cables

RATING: ADD | TARGET PRICE: Rs 337

We have cut our FY21/FY22 estimates by 42%/37% factoring slower recovery in demand and accounting for revenue loss during lockdown. We downgrade the stock to ADD from Buy as we expect earnings recovery to be sluggish on weak offtake from real estate sector. We revise our target price using SOTP method to Rs 337 (Prev TP 483).

 

Valuation: Adjusting for cash and cash equivalents, valuations are attractive at 11x FY22E standalone P/E. Re‐rating would depend on recovery in real estate and telecommunications spending.

 

Risk to our call: Faster recovery in demand from real estate and telecommunication sector

11:29 AM

BROKERAGE VIEW:: Centrum Broking on Cement sector

Normalcy is likely to be only during the second half of FY21 after the challenging 1HFY21 as indicated by dealer interaction. However, FY22 the impact of loss of production and earnings is likely to reversed due to the stronger pick in the demand and also due to lower base in FY21. We have revised our ratings on ACC and JK Cement (JKCE) from Reduce to Add. We have upgraded our rating on Ambuja Cements from Add to BUY. We continue our Add rating on Ultratech (UTCEM) in the large cap segment. We have maintained our BUY rating on Star Cement.

11:26 AM

BROKERAGE VIEW:: Axis Securities on Lumax Industries

The challenges of FY21 will be unprecedented, having said that, Lumax Industries is a good play on PV and 2W segments and is present in most models that are doing well. Being a market leader in the lighting segment we believe it will be able to withstand and outperform peers. We tweak revenue for FY21 and FY22 upwards by 9%/2% and upgrade the stock from SELL to HOLD valuing it at 16X FY22E EPS estimate of Rs 63.6 to come at a TP of Rs 1,018.

11:25 AM

BROKERAGE VIEW:: Axis Securities on Asian Paints

Near term volume pressures are likely to sustain as Metros and Tier1 cities (40-50% of volumes) remain under severe pressure due to COVID-19 impact. To factor in near term demand challenges and benign RM outlook we revise our FY21E/22E Revenue/PAT estimates downwards by 26%/19% and 28%/12% respectively. Retain HOLD rating but revise our TP to Rs 1,796/share (earlier Rs 1,890/share) on the back of downward revision in FY21/22E earnings. Key risks to our estimates – COVID-19 led demand disruption, uncertainty over second wave of the pandemic in India.

11:23 AM

BROKERAGE VIEW:: Edelweiss Securities on Jindal Steel & Power

JSPL has accepted a binding offer from Templar Investments Limited to divest its entire stake in Jindal Shadeed for a consideration in excess of USD1bn. The transaction is likely to be completed in a month. We view this as a positive development as JSPL’s leverage ratios will become far more attractive in a period of lean earnings while the balance sheet will strengthen further. We estimate further potential upside of Rs 20/share to our TP if the deal is consummated. Maintain ‘BUY/SO’ on JSPL with a TP of Rs190/share on an exit multiple of 6x FY22E EBITDA.

11:16 AM

June Auto Sales :: Maruti reports total sales of 57,428 units

>> Maruti Suzuki posted total sales of 57,428 units in June 2020 (including 52,300 units in the domestic market and 839 units to another OEM)

>> The Company closed the first quarter of FY 20-21 with total sales of 76,599 units (66,165 units domestic, 862 units to other OEM and 9,572 units exported.)

>> Domestic sales (excluding OEMs) at 53,139 units, down 54% YoY

>> Exports at 4,289 units, down 56.4% YoY

11:11 AM

ADAG shares gain heavy volumes; RCapital, RInfra freeze at 5% upper circuit

Reliance Power (RPower) and Reliance Naval and Engineering were up in the range of 2 per cent to 4 per cent after more than 10 million shares changed hands in these counters via block deals. In comparison, the S&P BSE Sensex was up 0.49 per cent at 35,088 points on the BSE. RCapital was locked in the upper circuit of 5 per cent at Rs 13.35, surging 65 per cent in the past 11 trading days. The trading volumes on the counter jumped nearly eight-fold with a combined 14 million shares changing hands on the NSE and BSE so far. READ MORE 

11:05 AM

Voda Idea dips 5% as loss grows to Rs 11,742 cr; here's what brokerages say

Shares of Vodafone Idea dipped as much as 4.9 per cent on the BSE on Wednesday after the company posted a loss of Rs 11,643.5 crore in Q4FY20 due to one-off expenses. However, on the revenue front, the company reported flat growth on a year on year basis. On a sequential basis, revenue rose 6 per cent to Rs 11,754 crore due to tariff hike. READ MORE

10:58 AM

NEWS ALERT :: Alembic Pharma gets US FDA nod for Doxycycline Hyclate tablets

>> the Company has received final approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) Doxycycline Hyclate Tablets USP, 75 mg and 150 mg.

>> Acticlate Tablets, 75 mg and 150 mg, of Almirall, LLC. Doxycycline Hyclate Tablets, 75 mg and 150 mg are indicated for the treatment of certain Rickettsial, sexually transmitted, respiratory tract, bacterial and ophthalmic infections.

Alert: Doxycycline Hyclate Tablets USP, 75 mg and 150 mg have an estimated market size of US$ 17 million for twelve months ending March 2020 according to IQVIA.