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

All that happened in the markets today

Brokers trade at their computer terminals at a stock brokerage firm in Mumbai. Photo: Reuters

1:49 PM

Edelweiss on HUL

Hindustan Unilever’s (HUL) Q1FY21 net sales (up 4.4% YoY), EBITDA (flat YoY) and PAT (up 7.2% YoY) surpassed our estimates. On comparable basis, domestic revenue dipped 7% YoY. Domestic volumes benefited about 6% from trade pipeline restocking however still fell 8% YoY on a base of 5%. Despite covid-19 turmoil, company gained 5% market share in 80% of its portfolio.

With impact on high-margin business (BPC), gross margin took a 233bps YoY hit; however, sharp cut in ad spends (down 397bps YoY) aided EBITDA margin a tad (down 110bps YoY). Even in such a tough economic environment, HUL has announced an interim (special) dividend of INR9.5 per share for FY21. Overall, going ahead, we remain confident of margin expansion owing to HUL’s cost savings programmes and synergies from the GSK acquisition. Maintain ‘BUY’ with TP of Rs 2,665

1:47 PM

Centrum on Infosys

Infosys currently trades at 20x FY22E EPS which is at 16% discount to TCS. With Infosys moving to leadership quadrant on growth for second consecutive year, it can narrow valuation differential ( vs TCS). We raise TP by 22% to Rs970/sh (20.5x June22E EPS vs 18.5x June22E EPS earlier) led by P/E upgrade and EPS upgrade. Our multiple upgrade is driven by Revenue, margin and EPS upgrade as well as strong deal signing. Retain BUY.

1:44 PM

BUZZING STOCK:: Hindustan Zinc up 5.5%

1:35 PM

MARKET CHECK:: Sensex sees sharp slide

1:22 PM

MARKET CHECK:: Top 5 gainers on the BSE at this hour

1:12 PM

Matrimony.com freezes at 20% upper circuit for second straight day

Foreign portfolio investors (FPIs) have increased their stake in Matrimony.com by more than 200 basis points (bps) to 14.74 per cent in April-June 2020 quarter, according to shareholding pattern data disclosed by the company. FPIs were held 12.51 per cent stake in the company at the end of March 2020 quarter, data shows. READ MORE

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1:01 PM

Axis Bank, Bajaj Auto, HUL: Here's how to trade result-driven stocks

Axis Bank Ltd (AXISBANK): The two ways to analyse this counter are moving averages and price resistance. As the stock has moved above the 100-days moving average (DMA), the positive sentiment has grown even stronger. Axis Bank now needs to conquer Rs 500 levels to embark a new trend. The medium-term support comes in at 50-DMA, which is positioned at Rs 410 levels. The immediate support on a closing basis is at Rs 440. The overall trend looks bullish as price is moving upward with average volumes. READ MORE

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12:42 PM

MARKET CHECK:: BSE Midcap index outperforms Sensex; up 0.7%

12:41 PM

Bajaj Auto Q1 profit tanks 53% YoY to Rs 528 cr, EBITDA margin dips to 14%

The Pune-headquarted company’s profit before tax (PBT) came in at Rs 681.67 crore compared with Rs 1,578.78 crore PBT logged in Q1FY20.

That apart, the revenue of the company tanked 60 per cent YoY to Rs 3,079 crore, as against Rs 7,755 crore earned in Q1FY20. This, too, was in line with analysts’ expectations. READ MORE

12:34 PM

BROKERAGE VIEW:: Centrum Broking on Infosys

We believe FY21 would be the second consecutive year in which Infosys would outperform TCS on USD revenue growth on an organic basis. TCS organic US dollar revenues grew/(decline) by 5.4/(5.6)% for FY20/FY21E vs Infosys organic USD revenue growth of 7/0.5% for FY20/FY21E. Infosys is increasing its growth differential wrt to TCS in our view in FY21E ( by a whopping 600bps). Infosys could also narrow EBIT margin differential with TCS to 190bps in FY21(vs 330bps in FY20). However, TCS ROE profile at 35% for FY21 is superior to Infosys which stands at 25.5%. TCS scale is also much higher than Infosys (TCS revenue and Headcount are 1.6x and 1.85x that of Infosys). We believe Infosys discount could narrow to 10-12% that of TCS.

12:25 PM

NEWS ALERT:: PM Modi to deliver keynote address at India Summit at 9 pm today

12:21 PM

Oil prices fall on US inventory build, increasing coronavirus fears

In his first briefing in months focused on the pandemic, U.S. President Donald Trump said that the outbreak would probably get worse before it gets better, one of his first recent acknowledgements of the spread of the problem. Industry group American Petroleum Institute (API) reported US crude inventories rose last week by 7.5 million barrels compared with expectations for a draw of 2.1 million. READ MORE

12:10 PM

Bajaj Auto :: Expectations

Edelweiss Securities had pegged the company’s revenues at Rs 3,099.9 crore, a decline of 60 per cent year-on-year (YoY) from Rs 7,755.8 crore logged in the corresponding quarter of FY20. Sequentially, the drop would be 54.5 per cent compared to Rs 6,815.9 crore of Q4FY20.

12:03 PM