Sensex adds 529pts, ends near 66,600; Nifty at 19700; SBI up 3%, HDFC Bk 2%

CLOSING BELL on July 17: The benchmark S&P BSE Sensex notched a new high of 66,656 in the intra-day trade, while the Nifty50 hit a new record high of 19,732

9:06 AM

PRE-OPEN SESSION | Sensex eyes positive start, up over 50 points

9:05 AM

Rupee opens at 82.14/$ as against previous close of 82.44/$

9:04 AM

Brokerage Call :: MOFSL on Blue Dart Express

With the combination of lower ATF prices and a price hike in Jan’23, BDE's margins are expected to stabilize at 13-14%.

BDE is actively focused on increasing the contribution of the Surface Express segment, which currently stands at 35% of the company's revenue. The company foresees the Surface Express sector growing at a rate twice that of the Air Express segment, primarily driven by the cost advantage it offers.

 
To meet the strong demand growth, especially from Tier II and III cities and towns, BDE has added two aircraft to its fleet in FY23.

We expect BDE to clock a CAGR of 14%/21%/28% in revenue/EBITDA/PAT in FY23-25. We reiterate our BUY rating with a TP of INR8,250 (20x FY25E EV/EBITDA).

9:04 AM

Brokerage Call :: MOFSL on Angel One

ANGELONE is a perfect play on: 1) the financialization of savings and 2) digitization. Q1FY24 performance was weaker than our estimates. However, since then the traction in volumes and overall activity has picked up momentum. The management continues to invest in technology to strengthen its position.

We have cut our FY24/FY25 earnings estimates by 5.5%/3.8% to factor in some reduction in the number of F&O orders, leading to lower broking income from the derivative segment. We reiterate our BUY rating on the stock with a revised TP of INR2,050 (premised on 14x Mar’25E EPS).

9:02 AM

Brokerage Call :: Kotak Institutional Equities on Bandhan Bank

Bandhan Bank reported a weak performance on asset quality metrics with high slippages in MFI. Growth has been slower than peers partly reflecting the weak recovery momentum in this portfolio. Valuations have de-rated quite significantly to its peers and we do see the risk-reward turning favorable as asset quality turns decisively favorable. Maintain BUY rating with FV revised to Rs260 (Rs280 earlier).

9:00 AM

Brokerage Call :: Kotak Institutional Equities on JSW Energy

JSW Energy reported 20% yoy growth in EBITDA at Rs12.2 bn, aided by the first full quarter of earnings from Mytrah (Rs3.7 bn of EBITDA). However, the weaker performance from erstwhile assets, as well as higher interest and depreciation cost, led to a 34% yoy decline in PAT to Rs2.9 bn.

JSW Energy is targeting 9.8 GW of capacity by FY2025E, which it is on course to achieve even as it has ambitious targets in pump storage hydro and battery storage (40 GW) as well as capacities in solar module (1GW) and green hydrogen (3,800 tpa).

We maintain our SELL rating with a revised FV of Rs195/share (Rs160/share earlier).

8:59 AM

Brokerage Call :: Kotak Institutional Equities on Avenue Supermarts

Dmart’s 1QFY24 revenue growth of 18% yoy was led by retail area addition of 11.6% yoy and some sequential improvement in core SSSG. Weaker GM print of 15.2% (KIE 15.5%, 1QFY23 16.3%) was driven by lower mix of GM&A per the company, although we believe price competition could also have impacted margins in a quarter that typically witnesses the highest margins in a year.

Lower-than-expected GM drove ~5% EBITDA miss and also resulted in a tepid 2.5% yoy growth in net profit. We revise down our FY2024-26 EPS estimates by 2-6% on lower revenue and margin forecasts. Roll-forward and lower capex estimates in our DCF drive an unchanged FV of Rs3,475. Retain SELL.

8:57 AM

Brokerage Call :: Nuvama Institutional Equities on Bandhan Bank

While Bandhan posted weak Q1FY24 earnings, it is in line with consensus. Meanwhile, earnings expectations have been rebased since the business update. But asset quality fell short of expectations with non-ECLGS EEB slippage staying high (6%) and total EEB slippage, including ECLGS, also high (10%). Importantly, total SMA pool ex-ECLGS has risen to 5.5% vs. 4.6% QoQ despite high slippage, indicating a high forward flow. Guidance on growth, NIM and credit cost held.

8:56 AM

Brokerage Call :: Nuvama Institutional Equities on Avenue Supermarts

Avenue Supermarts (DMart) reported a muted showing with Q1FY24 EBITDA/PAT coming in 11% below our estimate (10%/7% to consensus). This was again driven by a weak GM of 14.6% (est: 15.5%), down 120bp YoY (pre-covid Q1 average 15.7%) due to the lower mix of General Merchandise & Apparel.

Management did make a statement that the mix is improving and trending towards pre-pandemic level, but this quarter’s performance is not an improvement over last. Hence, this remains a concern while we await further clarity.

8:51 AM

Mind the gap as G-sec and Nifty earnings yield enters danger zone

At present, the G-sec yield is roughly 7.09 per cent, while the Nifty earnings are 5.12 per cent. As a result, the spread works out to 1.98 ppt, ever so slightly below the danger mark of 2 ppt. READ MORE

8:47 AM

WATCH :: Has Dalal Street priced in demand woes for IT stocks?

8:43 AM

Tata Steel to explore opportunities in lithium, other battery-minerals

The Natural Resources Division has been in operation for several decades assisting in captive mining-related services. In 2021, the division started offering commercial services under Tata Steel Industrial Consulting to other companies in the mining space. The division may now also consider participation as an exploration agency in battery minerals, subject to economic viability, according to the company spokesperson. READ MORE

8:39 AM

Ola Electric founder Bhavish advances plan for IPO as e-scooters take off

“I thought it would take me four to six years of revenue to go public,” Founder and Chief Executive Officer Bhavish Aggarwal said in an interview while sipping iced Vietnamese coffee in New Delhi’s bustling Connaught Place. “Now I can feel that it will be much earlier. Ola Electric has grown and matured faster than I had initially planned because the market response has been very strong.” READ MORE

8:34 AM

DLI scheme 2.0: Centre considers picking up equity in chip design firms

While the modalities and the timing of the second phase of the scheme are yet to be worked out, the broader vision on which there is a consensus is to offer equity support to those domestic semiconductor chip design companies that have reached a certain maturity and have the potential to go to the next level or scale. READ MORE

8:30 AM

Oil refiners in focus :: Centre raises windfall tax on crude oil to Rs 1,600 per tonne

The Indian government, last Friday, raised the windfall tax on petroleum crude to 1,600 Indian rupees ($19.49) per metric ton from zero, according to a government notification.

 

The changes took place from Saturday, the country's Ministry of Finance said in a notification, adding that the government has left the windfall tax on diesel, petrol and aviation turbine fuel unchanged at zero. READ MORE