MARKET WRAP: Indices end in the green but witness worst July in 17 years

Weak corporate earnings, economic slowdown and tax issues continued to weigh down investment sentiment.

9:06 AM

Sensex at pre-open

9:01 AM

Rupee opening

Rupee opens lower at 68.90/$ vs Tuesday's close of 68.86 against the US dollar

8:58 AM

Liquidity in secondary market for G-secs hugely improved in the past decade

Liquidity in the secondary market for government securities (G-secs) has hugely improved over the past decade. The average daily volume in G-secs trading, including in state development loans or SDL (bonds issued by the states), has remained higher than that in corporate bonds and the equity markets. Liquidity in G-Secs is mainly in a few benchmark securities, particularly the 10-year bench­mark. The average bid-ask spread for liquid securities in the G-Sec market has remained at less than a basis point during the past few years. READ MORE

8:53 AM

Sebi wants mutual funds to track emerging credit risks in exposures

The Securities and Exchange Board of India (Sebi) wants mutual funds (MFs) to build mechanisms that can give early-warning signals to indicate a deteriorating credit profile of a borrower. According to sources, the market regulator wants sudden yield movements to be included in this system to improve MFs’ ability to track build-up of stress. READ MORE

8:52 AM

Stunted FY20 volume growth to hurt Escorts; net profit may see a 20% fall

Though the stock of tractor maker Escorts is down by half over the last year, the downward trend is unlikely to reverse any time soon given the muted June-quarter performance and a cautious outlook for the sector. Mitul Shah of Reliance Securities believes that delayed monsoon, the deficit in a few regions, lower water levels at reservoirs and high base over the previous year are the major hurdles for the tractor industry over the medium term. After three years of strong growth, analysts expect the tractor industry to post a fall of 7-10 per cent each in FY20 and FY21. READ MORE

8:48 AM

Dr Reddy's Labs looks to recover from Q1 blues with multiple growth drivers

Dr Reddy’s lower-than-expected performance for the June quarter and delay in key product launches led to weakness in the stock, which shed 3.4 per cent on Tuesday. Disappointment with June quarter performance was led by temporary disruption in active pharmaceutical ingredient (API) manufacturing and one-off inventory adjustments. READ MORE

8:47 AM

Stocks to watch: IOCL, Eicher Motors, Axis Bank, ZEEL, DHFL

Here's a list of companies whose shares are expected to trade actively in today's trading session -

 

Earnings today: A total of 88 companies, including Indian Oil Corporation (IOC), Eicher Motors, Ashok Leyland, IndiaMART InterMESH, Trent, UPL, Ajanta Pharma are scheduled to declare their June quarter results today.

Hero MotoCorp: The country's largest two-wheeler maker Hero Moto Corp on Tuesday posted a 35.89 per cent increase in consolidated net profit at Rs 1,256.69 crore for the first quarter ended June 30, 2019 on the back of a one-off exceptional gain of Rs 737.48 crore. 

 

Coffee Day Enterprises: Shares of the company will continue to remain in focus today. TV reports said the body of the founder VG Siddhartha has been found from the Nethravathi river. Siddhartha's body was found on the banks of the river near the Hoige Bazaar in Mangaluru, according to news agency ANI. READ MORE

8:41 AM

DHFL submits debt restructuring plan to core committee of creditors

India's debt-laden shadow bank Dewan Housing Finance Ltd (DHFL) has submitted a restructuring plan to its core committee of creditors (CoC), two sources involved in the matter said, adding that lead lenders were deliberating over the plan.

 

DHFL, the fourth-biggest housing finance company in India, has roughly 1 trillion rupees ($14.5 billion) of debt and is in the process of seeking lender approval on a restructuring designed to help it ride out a liquidy crunch and restart its lending business. READ MORE

8:40 AM

V G Siddhartha's financials stayed weak after selling his Mindtree stake

A complicated holding structure that depressed valuations, and the absence of coffee-stock euphoria seen elsewhere in the world weighed on a promoter group already laden with debt. A recent exit from the information technology segment hasn’t helped enough.

 

Coffee Day Enterprises has operations in logistics, financial services and office leasing. It hasn’t been able to get premium valuations despite almost 91 per cent of the stores it operated already having broken even, according to a recent earnings call.  READ MORE

8:38 AM

Mid, small-cap funds continue to disappoint investors amid market meltdown

Mutual fund (MF) investors — who had increased allocations to mid- and small-cap funds after the Lok Sabha election outcome in May — have been caught off-guard as the returns for these categories have taken a sharp beating in the ongoing market meltdown. So far this month, the two categories delivered negative returns of 7-8 per cent, according to data sourced from the Association of Mutual Funds in India. READ MORE

8:37 AM

Rajiv Kumar appointed Finance Secretary after Subhash Garg's exit

Rajiv Kumar, currently serving as Financial Services Secretary, was on Tuesday designated as the new Finance Secretary.

 

The Appointments Committee of the Cabinet headed by Prime Minister Narendra Modi approved the designation of Kumar as the new Finance Secretary, according to an official order. READ MORE

8:33 AM

Bears tighten grip on mkt: Nifty falls to lowest level in nearly 5 months

The benchmark Nifty index on Tuesday ended at 11,085, the lowest level in nearly five months and also below the 200-day moving average (DMA), a key technical support. The index has lost 5.2 per cent, or 603 points, in just nine trading sessions amid a sharp sell-off by foreign portfolio investors (FPIs), who are spooked by the increase in tax surcharge. READ MORE

8:31 AM

RBI allows domestic banks to sell NPAs abroad as one-time settlement

The Reserve Bank of India (RBI) on Tuesday allowed domestic banks to directly sell their bad loans in manufacturing and infrastructure sectors to investors abroad as part of one-time settlement (OTS) exercises. The move will allow overseas investors to take direct loan exposure to Indian corporates.

 

The defaulters, or stressed borrowers, can sell their assets in accordance with the OTS scheme, in order to raise external commercial borrowing (ECB) from abroad to repay domestic loans, the RBI said in a statement. READ MORE

8:29 AM

HDFC Securities on CDSL

Recommendation: BUY

TP: Rs 320

CMP: Rs 194

We maintain BUY on CDSL post higher revenues but lower margins in 1QFY20. Annuity revenue (+23% YoY) is driving growth led by the unlisted opportunity. Our SoTP of Rs 320 is based on 30x core FY21 earnings plus net cash.

8:27 AM

Narnolia Financial on JSW Steel

Recommendation: BUY

CMP: Rs 250

TP: Rs 300

Upside: 20%

We continue to remain positive on JSW Steel led by significant capacity addition in progress, cost cutting measures, increase in captive iron ore volume (expected to be around 5mt in FY20 vs. 1.8mt in FY19) and its ability to alter between export and domestic sales. However, over near term slow down in auto industry and reducing spread due to falling steel prices and raw material prices remaining at the same level will be a concern. We have reduced our FY20 EBITDA/PAT estimate by 11%/24% as we factor in higher operating expense but maintain our FY21 estimate. We value the stock at Rs.300 (7x FY20e EV/EBITDA) and maintain BUY.