MARKET WRAP: Sensex slips 394 pts amid weak global cues; RIL declines 1.7%

All that happened in the markets today

10:45 AM

Adani Enterprises up 2% as Cabinet clears leasing of 3 AAI airports to Co

Shares of Adani Enterprises gained 2.53 per cent to Rs 245.10 on the BSE on Thursday after the Union government announced the leasing of three Airports Authority of India (AAI)-run airports to the company. Yesterday, Union Environment Minister Prakash Javadekar announced that the government has given its go-ahead to lease out Guwahati, Thiruvananthapuram, and Jaipur airports through public-private partnership (PPP). READ MORE

10:34 AM

Muthoot Finance shares slip 5% after June quarter result; brokerages mixed

For the quarter ended June 2020, Muthoot Finance posted a 53.46 per cent rise in its consolidated net profit at Rs 853.51 crore against Rs 556.19 crore in the year-ago period. Sales rose 25.96 per cent to Rs 2,604.48 crore in the quarter ended June 2020 as against Rs 2,067.67 crore in the corresponding quarter of the previous fiscal.  READ MORE

10:22 AM

HAL, IRCTC decline up to 4% on report govt mulls stake sale via OFS

Individually, HAL shares slipped 3.7 per cent to quote at Rs 1,215 per share on the BSE in the intra-day trade. At 9:47 am, the stock was 2.5 per cent lower at Rs 1,230 apiece, as against 0.76 per cent decline in the benchmark S&P BSE Sensex. READ MORE

10:06 AM

Edelweiss on Infosys

Conference call notes

10:05 AM

Edelweiss on Emami

Emami is the flagship company of the Emami Group. It is a leading FMCG player in India, operating in certain attractive segments such as skin care and hair oil. Over the years, Emami has innovated and built blockbuster brands such as Navratna, Boroplus, and Fair & Handsome and acquired ayurvedic brands such as Zandu and Kesh King where turnaround should be expected soon.

As things normalise, we expect revenue growth to improve as the rural business recovers, wholesale dependence recedes and product relaunches gain desired traction. Furthermore, alleviation of promoter-level pledging concern and launches in the health & hygiene space are added positives. We maintain ‘BUY/SO’

10:03 AM

Tech View: Here's how to avoid getting caught in a 'Bear Trap' while trading

Simply put, a bear trap is a technical pattern that occurs when the performance of a stock or an index wrongly signals a reversal of a rising price trend. At times, such reversals instead turn into follow-up buying, thus trapping the sellers in their short positions. The psychology behind this whole process is called a “Bear Trap”. READ MORE HERE

stock market, market rebound, banking stocks, markets

10:02 AM

Rupee Opening

Rupee opens lower at 74.98 per US dollar vs Wednesday's close of 74.82/$

10:00 AM

Anand Rathi on Zee Entertainment

Pulled down by a 65% y/y fall in ad revenue to Rs 4.21bn largely due to the pandemic and market-share loss (Q1 FY21 market share: 15.8%, 18.3% the quarter prior) in certain markets, Zee Entertainment’s revenue plunged 34.7% y/y to Rs 13.12bn. Its subscription revenue grew 5% y/y to Rs 7.44bn. EBITDA declined 67% y/y to Rs 2.2bn.

The reported margin was 16.8%, vs. 32.9% a year back. No fresh episodes of existing shows were produced in the first two months, leading to a drop in programming cost. This was partially offset by content shot at homes and purchase of licensed content for the linear and digital businesses. Besides, amortisation cost of movies and digital shows continues. At the ruling market price, the risk-reward is favourable. We maintain our Buy rating, with an unchanged target price of Rs 220

9:58 AM

Anand Rathi on Voltamp Transformers

Impacted by nationwide-lockdown, Voltamp’s Q1 FY21 sales volumes of 892 MVA (down 61% y/y) were in line with our estimate. Its operating performance,though, was better than expected, helped by execution of relatively high-margin orders. The order book was a healthy Rs 4.1bn. Order inflow, however, was affected as finalisation is taking time due the present situation. Given the prevailing uncertain conditions, we are cautious regarding near-term order inflow and execution.

Long-term,however, we are positive on the company for its industry-focus, debt-free status and consistent FCF generation (end-Q4 cash and investments:`4.5bn, 40% of market cap). With the recent run-up in the stock price and consequent limited potential, we lower our rating to Hold

9:57 AM

Anand Rathi on TCNS Clothing

Hindered by staggered openings while EBITDA losses were less than anticipated because of better cost controls, TCNS’ Q1 FY21 revenue slipped below our estimates. The past 4-5 months has seen a cash burn of over `500m. However, the company is healthy, with ~Rs 1.25bn cash and significant cash-conservation measures in place (cost reductions, minimal capex, redeploying inventory, reducing purchases, shutting unviable stores), thus placing it in a better position as recovery sets in. We retain our Hold rating with a lower target price of Rs 369 on 10x FY22e EV/EBITDA (earlier 15x) as we shift our model to Ind AS 116

9:56 AM

F&O Watch

(Source: SMC Global)

9:54 AM

Centrum on India Cements

9:52 AM

Nomura downgrades KNR Construction

We value KNR at 10.5x (vs 12.0x earlier on our reduced ROE estimate) FY22F EPS of Rs 23.6 (rolled to Jun-22), and add the book value of investments of BOT/HAM assets to arrive at a target pric of Rs 285. With around 11% implied upside, we downgrade KNR to Neutral, and prefer KEC (KECI IN, Buy) instead.

9:50 AM

Most active stocks by volume

COMPANY	PRICE(rs)	CHG(%)
VODAFONE IDEA	8.71	0.00
FUTURE RETAIL	131.85	10.66
ZEE ENTERTAINMEN	193.40	-1.85
TATA POWER CO.	59.60	5.02
B H E L	39.10	2.76

9:45 AM

Cipla adds 1%