Sensex sheds 355 pts; Nifty below 15,650; smallcaps bleed

In the global markets, mainstream indices in Japan, South Korea. and Australia declined in the range of 0.35 to 0.96 per cent

9:25 AM

Earnings Impact :: ACC jumps 5%, hits new high

> Cement maker ACC reported an over two-fold jump in consolidated net profit to Rs 569.45 crore for the second quarter ended June 2021, helped by a lower base, increase in sales and cost efficiency.

9:24 AM

Result Reaction :: HCL Tech sheds over 2%

> The company's first-quarter numbers were propelled by cloud and digital transformation deals. Net profit for the quarter at Rs 3,214 crore was up 9.9 per cent year-on-year and 8.5 per cent sequentially. Although, it did not meet the consensus estimate of analysts tracked by Bloomberg at Rs 3,425 crore.

9:22 AM

Sector Watch :: Nifty IT and Nifty FMCG indices show resilience

9:19 AM

Sensex Heatmap | Top gainers and losers at opening tick

> Top gainers: Ultratech Cement, PowerGrid, Asian Paints

> Top losers: HCL Tech, HDFC Bank, ICICI Bank, Bharti Airtel

9:17 AM

First Trade :: Nifty50 gives up 15,750

9:16 AM

OPENING BELL :: Sensex declines 140 points

9:08 AM

Commodity check

9:06 AM

Sensex Heatmap | Top gainers and losers in pre-open trade

9:04 AM

Nifty50 slips below 15,750 in pre-open session

9:03 AM

Pre-open session :: Sensex slips over 100 points

9:00 AM

Prabhudas Lilladher on HDFC Life

Reco: Hold | TP: Rs 725

HDFC Life’s APE of Rs15.6bn was slower than expectation with growth of 30% YoY, while margins were steady at 26.2% leading to 40% YoY growth in VNB at 4.1bn. The company made a Rs7.0bn (incl. previous reserve of Rs0.7bn) or 260bps of EV as claim reserving on higher claims from the second wave severity.

Company continues have a steady product mix, although in Q1FY22 ULIP improved & Credit protect bounced back sharply. Focus continues to remain on long term products, while is cautious in near term on protection as profitable underwriting is quite tough. We continue to build a 18% ROEV, 18% EV growth and improving margins trajectory towards 27% over FY22-24E.

Although, strong metrics are visible in multiple of 3.5x Sep-23 EV and we await for better entry points. Retain HOLD with TP of Rs725 (unchanged)

9:00 AM

NEWS ALERT :: Wipro sells entire stake in Insighths for $19.17 mn

> Consequent to the sale, Wipro does not hold any stake in IntSights

8:58 AM

Sharekhan on HCL Tech

Reco: Buy | TP: Rs 1,200

We maintain a Buy on HCL Technologies with a PT of Rs. 1,200, given consistent wins in integrated deals, strong deal pipeline and reasonable valuations.

Revenue and EBIT margin missed our estimates owing to revenue loss amid second wave of COVID-19; but Q4 witnessed healthy deal bookings (37% y-o-y), employee additions (7,522+ on q-o-q) and a strong deal pipeline.

As expected, the management reiterated its earlier guidance of a double-digit CC revenue growth and EBIT margin of 19-21%. Management remains confident on delivering strong q-o-q growth for remaining quarters of FY2022.

Strong deal pipeline, aggressive net employee addition, healthy deal bookings and strong demand create a solid platform for HCL Tech to deliver revenue growth in FY2022E. We expect HCL Tech to clock a 12.6% CAGR in revenue over FY2021-24E. 

8:54 AM

Kotak Institutional Equities on HDFC Life

Reco: Add | TP: Rs 775

HDFC Life reported a strong 1QFY22 with 41% VNB growth. This was largely due to a low base driving 30% APE growth, and VNB expansion likely because of higher group protection, annuity and non-par businesses. Even as the operating performance remains on track, higher Covid provisions marred EV growth. We don’t rule out further increase in such provisions in 2Q but we reckon these provisions as one-off and focus on a strong business trajectory post the lockdown instead. Retain ADD with FV of Rs775.

 

8:52 AM

Kotak Institutional Equities on HCL Tech

Reco: Add | TP: Rs 1,125

HCLT reported weak 0.7% c/c sequential revenue growth, dragged down by the second wave of Covid and seasonal weakness. Normal services will resume from September 2021 quarter. Growth in the near term will be aided by demand for digital foundation and cloud IMS where HCLT is well-positioned and modern apps where positioning has improved. Products will be a drag. The HCLT stock is attractive even after accounting for a lower growth profile. We maintain revenue and EPS estimates and raise Fair Value to Rs1,125 on rollover. Maintain ADD.