MARKET: Indices snap 5-day rally amid weak global cues, Sensex dips 59 pts

All that happened in the markets today

2:45 PM

MARKET CHECK:: Sensex extends fall, now down over 300 pts

2:38 PM

Alembic Pharma shares gain 5% to hit a new high after robust Q1 earnings

The company's net sales grew 41 per cent at Rs 1,341 crore against Rs 949 crore in the corresponding quarter of the previous fiscal. EBITDA (earnings before interest, taxes, depreciation, and amortisation) rose 108 per cent to Rs 416 crore, while margins improved to 31 per cent from 21 per cent in the previous year quarter. Analysts on an average had expected a net profit of Rs 190 crore on revenues of Rs 1,123 crore for the quarter. In the past three months, the stock has rallied 60 per cent against a 20 per cent rise in the S&P BSE Sensex. READ MORE 

2:28 PM

BROKERAGE VIEW:: Centrum Broking on HCL Tech

While the last few quarters FCF was impacted owing to IBM payouts (in June 2019/June 2020 totaling to USD1620mn) as part of the acquisition, we see a swing in free cash flow from 2QFY21 onwards. Hence, we potential for substantially upping dividends or even exploring buyback after a few quarters. This itself can bring stability in HCL P/E multiples and help re-rating. Raise TP by 19% Rs730/sh ( 15.5x June22E EPS vs 14x June22E EPS earlier). Maintain BUY.

2:21 PM

EXPERT COMMENT:: Rahul Gupta, Head of Research- Currency, Emkay Global on rupee vs USD

‘’Overall the trend in USD/INR spot has been bearish, breaching the psychological level of 75 on weak dollar and risk-on mood. In the past, the USD/INR spot has not been able to break the crucial support of 74.50 on likely RBI buying and had bounced from there. We expect 74.50 to continue to act as crucial support until the US decides on the fresh stimulus program. However, consistent trading below 74.50 will open doors for 74.20/74.25 with 75 acting as the crucial resistance.’’

2:18 PM

GLOBAL MARKET:: European indices trade in the red

2:11 PM

Credit Suisse Wealth Management India on gold prices

We continue to see the environment as gold friendly. Central banks will most likely remain dovish for longer, while the early signs of a pick-up in inflation expectations should further boost the gold demand, in our view. We remain positive on gold with 3-month and 12-month forecasts of $1,850 and $1,900, respectively.

2:09 PM

Elara Capital on sugar sector

Good rainfall and higher cane acreages this year are likely to result in higher sugar production in the upcoming season SS21. Industry estimates sugar production at 32mn tonne. Higher cane diversion toward ethanol should lower sugar production by ~1.5mn tonne as per ISMA, resulting in net sugar production of 30.5mn tonne. Domestic demand of 26.0mn tonne and exports of ~5.5mn tonne (support by higher exports subsidy) will result in closing inventory of 10.5mn tonne for SS21, which is lower by 1.0mn tonne over SS20. We retain our positive stance on the sector. Our preferred pick is Balrampur Chini.

2:07 PM

Rupee update

2:04 PM

On a roll | Matrimony.com

Shares of Matrimony.com were locked in the upper circuit limit of 20 per cent for the second straight day, at Rs 557 on the BSE on Tuesday. The stock of the country’s leading consumer Internet Company was trading higher for the fourth straight day and rallied 49 per cent during the period. READ MORE HERE

2:03 PM

Result preview :: L&T

Larsen & Toubro (L&T), is also expected to report a dismal performance for the quarter ended June 2020 when it announces its numbers on Wednesday, July 22. However, the company's services and exports businesses are expected to cushion the overall revenue decline. Key monitorables for the period under review, according to analysts, would be pick up in ordering activity, update on supply-side and labour issues and working capital cycle READ MORE HERE

2:01 PM

Index watch : NSE

2:00 PM

Markets at 2pm

(Sensex Heatmap)

1:55 PM

Market stats :: Most active stocks by volume (BSE 500)

COMPANY NAME	LATEST	CHG (%)	VALUE (Rs CR)	VOLUME
VODAFONE IDEA	8.63	3.85	64.12	74295805
M & M FIN. SERV.	153.60	10.62	99.81	6497958
SUZLON ENERGY	4.71	-4.85	2.10	4454186
GMR INFRA.	20.80	4.52	8.30	3988453
TV18 BROADCAST	38.35	-1.79	10.58	2759315

1:53 PM

ICICI Securities on 5paisa Capital

5Paisa has been growing its customers robustly in the last three years. The lockdown further fuelled customer addition pace and, hence, aided ADTO growth. Rise in revenue may outpace growth of higher customer acquisition cost, which would lead operating leverage to kick in, thus keeping earnings positive.

We expect PAT to grow to Rs 19 crore in FY22E. Accordingly, we expect uptick in return ratios with RoE at ~12.4% in FY22E. Continued addition of new products including launch of P2P lending platform is seen enabling higher revenue in the long run. Given ~80% of customers are new to market and over 81% are from Tier II/III locations, without long experience and steep correction in recent past, burnout ratio or leakage is to be watched.

Growth prospects stay strong though recent stock price run up prompts us to maintain HOLD. The stock is currently trading at 50.6 P/E, 4.2x revenue. We value the company at 4.5x FY22E revenue, revising target price to Rs 385

1:50 PM

Edelweiss on ICICI Pru Life

The stock offers: i) most improved pure protection revenue performance in the past four–five years (15% of FY20 APE versus ~2%); ii) distribution strengths/savings growth potential post eventual recovery; and iii) nearly complete absence of balance sheet risk. Maintain ‘BUY’ and reiterate IPru Life as our top 12-months’ sector pick; revising our target price to INR550 (INR500 earlier, multiple unchanged).