RIL, financials drag indices; Sensex tanks 667 pts, Nifty settles at 10,900

All that happened in the markets today

2:35 PM

BROKERAGE VIEW:: Centrum Broking on Dabur (India)

Dabur’s Q1FY21 print was better than estimates. Consol. revenue/ EBITDA/ APAT declined at 12.9%/9.0%/10.9% YoY. The domestic business declined 6.9%, while international business (26% of sales) declined 21.6% (CC). Despite 40 days lockdown which impacted HPC portfolio (-14.9%), its healthcare and new product launches in the hygiene segment received good response growing at 29.2%, while the Foods segment declined 34.4%. Management cited its power brand strategy and focus on village coverage met the demand from the migrant population yielding good results in Q1. Further, Project Samriddhi (cost reduction) coupled with a cut in ad-spends helped in improving margins. Considering the sharp focus on Health and hygiene segment we have increased revenue/PAT estimates for FY21E/FY22E by 4.5%/5.8% and 7.4%/8.9%. We retain our Buy rating with DCF-based revised TP of Rs 542, implying 51x FY22E earnings.

2:28 PM

Auto sales recovery may not reflect correct picture, say experts

As income levels fall, top-selling models for the month of July and consumer enquiries also reflect that buyers are going for more affordable models. The top-selling models were entry-level models like Alto and Wagon R. In Maruti’s recent analyst call, the company mentioned that the percentage of inquiries for the hatches is around 65 per cent as against 55 per cent in the past. READ MORE

2:18 PM

Videocon staring at liquidation as Covid-19 pandemic deters buyers

Once India’s biggest electronics maker, Videocon Industries (VIL) is now staring at liquidation, as bidders worry about the company’s prospects and look to conserve cash in times of Covid.

 

The company was admitted for debt resolution in June 2018 under the Insolvency and Bankruptcy Code (IBC) after it started defaulting on its Rs 40,000-crore debt. According to a source close to the development, bankers considered sending the company into liquidation at a meeting on July 29. READ MORE

2:10 PM

Rupee Closing

Rupee closes weaker at 75.01 per US dollar vs Friday's close of 74.81/$

2:04 PM

Laurus Labs in focus, zooms over 15%; stock hits all-time high

For the April-June, 2020 quarter, Laurus Labs posted consolidated revenue of Rs 974 crore, up 77 per cent year-on-year (YoY) while earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at Rs 285 crore, up 288 per cent YoY. EBITDA margin came in at 29 per cent while net profit or profit after tax (PAT) zoomed 1047 per cent YoY to Rs 172 crore. READ MORE 

2:02 PM

NEWS ALERT | DFS seeks approval for PSB recap worth Rs 1.25 trillion via bonds: Agencies

>> Seeks approval from Cabinet 

Alert: DFS is Department of Financial Services

1:51 PM

Weak domestic business to offset gains on JLR front for Tata Motors

Hit by Covid-related lockdowns at both JLR and its domestic operations, Tata Motors reported its second consecutive quarterly loss. Barring the profit in the December quarter last year, this will be the fourth quarterly loss since the start of FY20. READ MORE

1:40 PM

RBI monetary policy: As economic contraction looms, majority see rate pause

Opinions are divided about the course of action the Reserve Bank of India (RBI) could possibly take in the upcoming monetary policy review. This is because a contracting economy due to coronavirus (Covid-19) along with lockdowns, rising bond supply and inching up of long-term rates reduce the marginal efficacy of successive rate cuts. READ MORE

1:29 PM

NEWS ALERT

1:23 PM

Bank stocks tumble; Nifty Private Bank index slips 3%; PSBs buck the trend

Individually, Bandhan Bank skid over 10 per cent per cent to Rs 309 on the BSE on Monday after nearly 21 per cent of the bank's equity changed hand on the NSE and BSE via block deals. Approximately 33 crore shares, representing 20.57 per cent equity of the bank and worth Rs 10,482 crore, changed hands on the counter at around 9:15 am on the BSE and NSE. However, till 12:50 pm, 47.63 crore shares had changed hands on the NSE and BSE. READ MORE 

1:11 PM

UPDATE:: Unichem Lab jumps 20%

12:59 PM

BROKERAGE VIEW:: Axis Securities on JK Cement

RATING: BUY | TARGET PRICE: Rs 1,697

JKCL has expanded its capacity by 33% from 10.47  mn tpa to 13.97 mn tpa and all the extended capacity is ramping up gradually. With the coming up of new capacity the company has the opportunity to capture further market share in its key market of Northern India and also gain in the lucrative central India market. We expect volume CAGR of 8% over FY20-23E which is significantly higher than the industry growth of 4% CAGR over the same period.

12:47 PM

UPDATE:: Top 5 losers on the BSE at this hour

12:36 PM

MARKET CHECK

12:25 PM

Are the markets entering a consolidation phase? Here's what charts suggest

Markets started the first trading day of August 2020 lower, with the S&B BSE Sensex slipping over 400 points in intra-day deals. The broader Nifty50, on the other hand, slipped below the crucial 11,000-level, and was trading at 10,978 level, down 95 points or 0.86 per cent around noon deals on Monday. Here are the key levels you should keep a tab on as regards the frontline indices. READ MORE