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

All that happened in the markets today

11:42 AM

Khaitans likely to join hands with Burmans to run Eveready Industries

The Burman family — the promoters of Dabur India — may join hands with the Khaitans of Williamson Magor Group to manage the country’s largest dry cell battery maker, Eveready Industries India. A source close to the development said, “The Burmans’ shoring up their holding could pave the way for a partnership between the two families to jointly run the firm.” CLICK TO READ FULL REPORT 
 

11:33 AM

RIL, Muthoot Finance, Granules, JK Cements, Laurus Labs hit record highs

RIL on Tuesday, after market hours said, the board of directors of the company is scheduled to meet on Thursday, July 30, 2020, to consider unaudited financial results of the company for the quarter ended June 30, 2020 (Q1FY21). Analysts expect Jio EBITDA will increase driven by subscriber additions (10mn in Q1) and higher average revenue per user (ARPU) (Rs 135) while retail will decline due to seasonal weakness and Covid-19-led lockdown. READ MORE 

11:25 AM

BROKERAGE VIEW:: Emkay Global on Bajaj Finance

Rating: HOLD | Target Price: Rs 2,950

 BAF reported a PAT of Rs9.62bn (-19.5% yoy, +1.5% qoq), which came in slightly lower than our estimate of Rs10bn, on healthy margins and lower opex (yet credit costs were elevated). BAF made additional Covid-19-related provisions of Rs14.5bn (total provision of Rs16.9bn) considering the uncertainty on the recoverability of moratorium provided.
 

 The total contingent Covid-19-related provision now stands at Rs23.5bn. Factoring in the weak economic trends and persisting lockdowns across the country, the company has increased FY21 credit cost estimates to Rs60-65bn from Rs54-57bn earlier. The revised estimates stand 100-110% above the pre-Covid credit cost in the previous year.
 

 Consolidated moratorium has reduced to Rs217bn (~15.7% of AUM) on a reduction in bounce rates, coupled with better collection efficiency. However, personal/business loans worth Rs36bn that were converted to flexi loans remain in a relatively grey area. Further, overall trends in collection efficiency still remain fairly lower than pre-Covid times.
 

 We await clarity over asset quality post the completion of moratorium. Considering the front-loading of provisions, we increase earnings by ~9.3%/9.1% for FY22/23E and roll forward to Sept’22E. We increase the TP to Rs2,950 from Rs2,150 earlier (~3.5x P/B Sept’22E vs. ~3x earlier). Maintain Hold and EW stance in NBFC EAP.

11:15 AM

AHEAD OF RESULTS | Bajaj Auto slips around 1% ahead of Q1 nos

11:06 AM

Commodity heatmap :: Gold hits record high on MCX, tops 50K-mark

11:02 AM

Sharp gains expected for Majesco's Indian shareholders after US sale

The decision of Majesco (India) to sell its US subsidiary to private equity player Thoma Bravo is likely to open up a cash bonanza for Indian shareholders. Given the acquirer is paying $13.1 per share (Rs 970), the deal values the Nasdaq-listed Majesco (US) at $594 million (Rs 4,430 crore). The offer is at a 72 per cent premium to the closing price on the Nasdaq. READ MORE 

10:52 AM

Hindustan Zinc charts path as metal production falls in lockdown impact

Hindustan Zinc's June quarter performance, as anticipated, was impacted by lockdown. Led by lower production days in April and reduced workforce availability due to restrictions, the company's mined metal production fell 5 per cent year-on-year and 19 per cent sequentially to 202,000 tonne. Softening base metal prices further pulled down the performance. Per tonne zinc prices on the London Metal Exchange (LME) averaged at $1,961 in the quarter, down 29 per cent year-on-year and 8 per cent sequentially. READ MORE 

10:43 AM

Hindustan Unilever: Q1 improves earnings outlook despite uncertainty

Hindustan Unilever’s (HUL’s) numbers in the first quarter of the financial year 2020-21 (Q1FY21), reported after market hours on Tuesday, beat Street estimates on the volume and operating profit fronts, and also indicated potential for earnings upgrades. This should lift sentiment for the stock, which is up 26 per cent from its March lows. READ MORE

10:33 AM

M&M Financial jumps 10% as stock turns ex-date today for 1:1 rights issue

The board of directors of the company on Saturday, July 18, approved a 1:1 rights issue at Rs 50 per share, amounting to Rs 3,089 crore. The board has fixed Thursday, July 23, 2020, as the record date for the purpose of determining the shareholders of the company who will be eligible to receive rights entitlements in the Issue. READ MORE

10:22 AM

There is no harm in booking some profit so long as market rally continues

For investment advisor Arun Kejriwal, the reason is clear for booking profit: “This rally can last a day or seven days or more, but we will see a sharp correction sooner than later. The initial earnings numbers comprise a clutch of companies which were more or less not impacted by the Covid-19 pandemic very badly. READ MORE

10:11 AM

Corporate announcement | RIL to announce Q1 nos on July 30 instead of July 24; stock hits new high of Rs 2K

10:06 AM

Rupee Opening

Rupee opens higher at 74.58 per US dollar vs Tuesday's close of 74.74/$

10:03 AM

BROKERAGE VIEW:: Prabhudas Lilladher on HDFC Life Insurance Company

Rating: REDUCE | CMP: Rs 627 | TP: Rs 522

HDFC Life’s overall APE de-grew by 30% YoY as FYP and Single Premiums de-grew 23%YoY/38%YoY respectively. Product mix on Ind. APE basis continued its bias in Par segment from NPar (slowed SP product on higher base) which also has a drag on margins being maintained at 24.3% (flat QoQ) as individual protection business still was better. Structurally growth pullback will be stronger with better positioning on protection, digital and tech-led adoption. Although, in medium-term slower attachment rates in credit life, on-par peer positioning in term insurance rates and lower room for risks on guaranteed products will constrain margins & growth, keeping our cautious stance. We retain REDUCE with a revised TP of Rs 522 (from Rs 454) based on 3.5x Mar-22 EV (from 3.2x Mar-22 EV)

10:01 AM

BROKERAGE VIEW:: Edelweiss Securities on metals and mining sector

Iron ore movement in Odisha suggests that secondary steel producers are resuming production gradually. Hence, we expect the supply of longs products to increase in the domestic market. However, sagging demand coupled with the seasonally weak monsoon period is likely to keep rebar prices suppressed in the near term. JSPL and SAIL are likely to bear the brunt owing to their higher proportions of longs products. JSPL would be relatively less impacted though due to cost efficiencies it reaps from utilisation of iron ore fines from the Sarda mines.

10:00 AM

BROKERAGE VIEW:: Edelweiss Securities on ICICI Prudential Life

RATING: BUY | TARGET PRICE: Rs 550

The stock is trading at 2.5x FY21E P/EV—by far the cheapest among the Big 3 private life insurers—in the wake of its recent market share loss. I Pru Life’s balance sheet is protected by its steadfast refusal to join the deferred guarantee non-par savings bonanza last fiscal. While opinions differ on suitability and adequacy of interest rate hedges assumed by its top private competitors, the company’s balance sheet health remains assuredly indifferent to interest rate drops. We maintain ‘BUY/SO’.