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

All that happened in the markets today

9:59 AM

BROKERAGE VIEW:: YES Securities on Axis Bank

RATING: BUY | TARGET PRICE: Rs 550

Upgrading reco from ADD to BUY. Resilient PPOP, sizeable provisioning buffer, announced capital raise and reduction in morat pool to soften the Covid impact in coming quarters. Expect sharp recovery in RoA/RoE during FY22 as growth and credit cost near normalizes. Core bank trades at 1.3x FY22E P/ABV; valuation more sensitive to FY22 outcomes and not FY21.

9:57 AM

BROKERAGE VIEW:: ICICI Securities on Hindustan Unilever

RATING: ADD | TARGET PRICE: Rs 2,600

We like the plans to (1) cut the tail SKUs and settle at 80% of pre-COVID levels and (2) lock-in advertising at low rates without compromising on share of voice – remember Churchill’s "Never let a good crisis go to waste". That said, downtrading, although primarily to lower sized packs and not to lower priced brands (yet), and potential second order macro impact limits stock upsides. For us, HUL is an outperformer within consumer staples. ADD.

9:55 AM

BROKERAGE VIEW:: ICICI Securities on Hindustan Zinc

RATING: ADD | TARGET PRICE: Rs 210

 

Hindustan Zinc (HZL) has reported higher-than-expected earnings in Q1FY21. What surprised is the distribution of silver/ zinc + lead EBIT – more heavy towards silver and highlighted the potential of silver portfolio for the company. Management expects FY21 mined metal and finished metal output between 925-950kte, higher YoY. Also, silver production has been guided at ~650te. Zinc CoP is expected to be <US$1000/te, Q1FY21 witnessed ~11% YoY reduction despite incurring start-up costs. Management refrained from commenting on media articles suggesting Hind Zinc is contemplating on raising additional debt. We currently maintain ADD with a target price of Rs 210/share.

9:52 AM

NEWS ALERT :: Govt approves sugar export to European countries

COMPANY NAME	LATEST	HIGH	LOW	CHG (rs)	CHG(%)	VALUE (rs CR)
BAJAJ HINDUSTHAN	6.18	6.25	5.96	0.13	2.15	0.08
SH.RENUKA SUGAR	8.92	9.03	8.56	0.19	2.18	0.06
BALRAMPUR CHINI	130.00	130.50	125.25	5.20	4.17	0.79
DWARIKESH SUGAR	24.65	24.80	24.00	0.65	2.71	0.12
RANA SUGARS	4.90	4.90	4.72	0.18	3.81	0.02
DHAMPUR SUGAR	133.15	134.25	128.40	4.50	3.50	0.38

9:47 AM

Axis Bank gains 8% on better-than-expected June quarter earnings

Shares of Axis Bank surged 8 per cent to Rs 482.85 in the early morning trade on the BSE on Wednesday after the private sector lender reported a healthy set of April-June (Q1FY21) quarter numbers with a strong operational performance. The bank’s net interest income (NII) grew 20 per cent year-on-year (YoY) to Rs 6,985 crore from Rs 5,844 crore in the year ago quarter. Net interest margin, meanwhile, at the end of the quarter under review stood at 3.40 per cent. READ MORE 

9:43 AM

RESULT IMPACT:: Bajaj Finserv gains around 1% as Q1 net rose 43.75% YoY

9:40 AM

L&T down around 1.4% ahead of Q1 numbers

9:39 AM

Axis Bank trades over 3% higher post June quarter nos

9:32 AM

RESULT IMPACT:: HUL slips around 2.5% post Q1 nos

9:27 AM

SECTOR WATCH:: Most indices on the NSE trade in the red

9:24 AM

FIRST TRADE:: Gainers and losers on the S&P BSE Sensex

9:19 AM

OPENING BELL

Markets opened on a flat note. At 09:16 am, the S&P BSE Sensex was little changed at 37,929 while NSE's Nifty was trading at 11,194.55, up 32.30 points or 0.29 per cent. 

9:12 AM

Kotak Institutional Equites on Automobiles & Components/Capital Goods

Certain Indian companies in the automobile and capital goods industry have scaled up their export businesses over the past decade and are well-placed to significantly grow these businesses by gaining market shares in their segments, led by superior value offering than competitors through comparable quality at competitive pricing and excellent service levels. Key players that can benefit from scale-up in the export business are Bajaj Auto, Balkrishna Industries, Schaeffler, Timken, Bharat Forge, Cummins, Thermax and ABB.

9:11 AM

Elara Capital on Axis Bank

We believe under the new CEO, AXIS has tightened risk management, built a strong buffer of provisions, and strengthened the digital offering. Decline in moratorium caps upside risks to credit cost and is positive. We recommend Buy with target price of Rs 550 based on target PBV of 1.5xFY22E P/BV. We build slippage of 4% in FY21E and 2% in FY22E.

9:10 AM

Result Calendar