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Share Market Highlights: Sensex ends 59 points lower, Nifty at 11,300; Sun Pharma, ITC, HDFC Life top losers

India Stock Market HighlightsToday: Kotak Bank, Cipla, Sun Pharma, Britannia, Dr Reddy were among the laggards today on NSE, while HCL Tech, Tech Mahindra, SBI, Eicher Motors and Tata Motors were among the top gainers

twitter-logoVenkatesha Babu | August 13, 2020 | Updated 15:56 IST
Share Market Highlights: Sensex ends 59 points lower, Nifty at 11,300; Sun Pharma, ITC, HDFC Life top losers
Share Market Highlights: Here's a look at the updates of the market action on BSE and NSE today

Sensex, Nifty Highlights on August 13: Sensex and Nifty erased early gains and ended on a flat note with negative bias on Thursday, amid mixed global equities. Investors turned cautious ahead of the release of CPI data. Traders said gains were erased over worries of rising coronavirus cases. Extending decline for the second straight session, Sensex ended 59 points lower at 38,310 and Nifty closed 7 points lower at 11,300. Yesterday, Sensex ended 37 points lower at 38,369 and NSE Nifty 50 closed 14 points lower at 11,308. Meanwhile, April-June quarterly earnings announcements by Hero MotoCorp, Tata Steel, Eicher Motors, Grasim Industries, Godrej Industries, Prestige Estates will also set the tone for the stock market today.

Here's a look at the updates of the market action on BSE and NSE today

3. 52 PM: Market at close

Sensex and Nifty erased early gains and ended on a flat note with negative bias on Thursday, amid mixed global equities. Investors turned cautious ahead of the release of CPI data. Traders said gains were erased over worries of rising coronavirus cases. Extending decline for the second straight session, Sensex ended 59 points lower at 38,310 and Nifty closed 7 points lower at 11,300.

3. 37 PM: NCC Q1 update

Commenting on NCC's Q1FY21 earnings, Centrum Broking said," Company's earnings significantly beat our estimate due to higher execution and higher margins. Pre-tax loss of Rs111m was lower than our estimate of loss of Rs729m. PAT came in at Rs169m (down 79.3%yoy) led by prior period tax reversal of Rs320m. Revenue declined 46%yoy to Rs11.8bn (est: Rs10bn) and EBITDA declined 57%yoy to Rs1.15bn. EBITDA margin declined 240bp yoy to 9.8% but was above estimate of 6.9% led by sustained gross margins and steep reduction in operating costs. Interest costs declined 8% yoy to Rs1.16bn (Rs1.2bn in Q4FY20) with gross debt rising Rs1.4bn qoq to Rs20.5bn. Q1 order inflow was Rs25.9bn with L1 position at ~Rs20bn"

3. 21 PM: Care Ratings Q1 update

Commenting on CARE Ratings Q1FY21 results, Centrum Broking said," Company's overall earnings missed estimates driven a sharp decline in revenue (-26.9% YoY) and the management attributes this largely to a sharp drop in volumes of new rating mandates stemming from lower borrowings by NBFCs and muted capex in corporate sector. Volume of debt rated fell by 33.6% YoY in Q1FY21. EBITDA missed est. driven by revenue. Other expenses normalised during the quarter (last quarter saw a spike) while employee cost followed the usual trajectory. FY21 remains challenging given the COVID-19 related slowdown, however FY22 may see a recovery given the low base effect and an improving macro environment. We maintain our multiple at 15.5x FY22 EPS but revise our TP to Rs480 (vs. 540 earlier). BUY.

3. 15 PM: Sundaram Finance Q1 update

Commenting on Sundaram Finance (SUF) earnings, Centrum Broking said," Company's earnings were largely in-line. NII at Rs3.8bn came in as expected though drop in fee income led to a miss on PPoP. Healthy NIM trajectory was intact with incremental funding cost trending downwards. AuM growth declined by 1.3% YoY as disbursements saw a steep drop though repayments were higher which was a positive. Disbursements and collection efficiency are picking up. Asset quality was contained sequentially though COVID-19 provisions were Rs1.1bn taking the total COVID-19 reserve to Rs1.37bn (appropriation of profits). Average moratorium is 55% though moratorium-1 to 2 saw a drop from ~65% to ~45%. See RoA/RoE scale up to 2.2%/13.6% in FY22E. Maintain BUY with SOTP based TP at Rs1,450.

2.55 PM:Galaxy Surfactants Q1 update

Commentin on 1QFY21 results of Galaxy Surfactants, Jyoti Roy, DVP- Equity Strategist, Angel Broking said,"Galaxy Surfactants reported Q1FY21 numbers which have come in significantly above our expectations. Company reported a 8.7% yoy degrowth in consolidated revenues for the quarter to Rs. 607 cr. EBIDTA for the quarter was down by 7% yoy to Rs. 90.5 cr. while EBIDTA margins expanded by 26bps yoy to 14.9. Net profits for the quarter was up by 7.5% yoy to Rs. 56.5 cr due to lower tax rate of 19.2% as compared31.3% in Q1FY20. We continue to remain positive on Galaxy Surfactants and it remains one of our top picks in the chemical sector given its focus on the FMCG sector."

2. 46 PM:  Quote on launch of Transparent Taxation Platform by government

Expressing views on launch of Transparent Taxation Platform by government, Jyoti Roy, DVP- Equity Strategist, Angel Broking said,"The launch of the new tax payer portal by the Government of India is another step in the direction of ensuring faceless and seamless tax assessments and  time bound resolution of issues. While the faceless assessment and taxpayers charter come into force from today the faceless taxpayers will also be able to use the platform for faceless appeals from the 25th of September. We believe that the launch of the new portal would go a long way in making the tax filing process smoother and easier for taxpayers."

2. 31 PM: Nifty outlook

Commenting on Nifty's near term technical outlook, Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said," The Nifty has resumed its up move after a brief pause yesterday. We should be heading to levels closer to 11500 during the course of this month's expiry. The support for the Nifty is at 11150 so a closing below that level could be kept as a stop for all long trades."

2. 15 PM: Nifty Bank outlook

Commenting on Nifty Bank near term outlook, angel Broking said in its note," Going ahead, we may continue to see bank nifty having a catch-up rally and the stocks within the basket outperforming. In such scenario, traders are advised to focus on individual stocks with proper exit setup. Immediate support is placed around 22030 and 21900 whereas resistance is seen around 22650 and 22830 levels."

2.07 PM: GlaxoSmithKline Pharmaceuticals Q1FY21 result update

On GlaxoSmithKline Pharmaceuticals Q1FY21 earnings, Centrum Broking said," Company's earnings were in line with our estimates. Revenues declined by 18% YoY to Rs 6.5bn as the impact of being an acute driven portfolio along with large exposure to Vaccines and hospital. However gross margins improved to 60.3% Vs 58% YoY largely based on product mix. Other expenses declined 16% YoY due to lower marketing and travelling expenses. We expect faster recovery in Q2 numbers and expect growth to come back. We value GLAXO at 39x FY22E, with a Buy rating and target price of Rs 1841.

1.55 PM: Nifty technical indicators

Angel Broking said in a note," It is clear that the bulls are not willing to give up; but at the same time, it doesn't have enough strength to go beyond the sturdy wall of 11350-11400 as well. If this pattern has to get confirmed, the Nifty needs to break below 11238, which will result in some immediate correction towards 11125-11064."

1. 49 PM: Aurobindo Pharma falls over 6% post Q1 earnings

Aurobindo Pharma share price were fell over 6% on Thursday's session, a day after the company published its April-June quarter results.

The drugmaker reported a 22.8% YoY growth in its consolidated profit to Rs 780.7 crore in the June quarter, as against Rs 635.7 crore in the year-ago period.

Despite company reporting earnings were above analysts' estimates, shares of Aurobindo Pharma opened at its earlier clossing price of Rs 934 on BSE and later touched an intraday low of Rs 875.2, falling 6.3%. The stock has fallen almost 7% in the last 3 days of decline.

1. 32 PM: Star Cement Lresult update

Commenting on 1QFY21 results of Star Cement, Keshav Lahoti- Associate Equity Analyst, Angel Broking said,"For Q1FY21 Star Cement reported a 36.6% YoY decline  in consolidated revenue to Rs 292 cr was below our expectation. Revenue for the quarter was adversely impacted as there was no production and sales for the cement industry during the first 20 days of April due to lockdown. Post 20th April, the cement industry gradually gained momentum. Operating profit margin declined to 22.4% from 24.3% YoY for the quarter. Company recorded a decline of 47.3% in PAT to  Rs 44 cr. EBIDTA and PAT were above our expectation. Going forward, pick up of construction work in urban areas and local lockdowns will be key monitatables for the Company."

1. 25 PM: Minda Industries' rights issue update

Minda Industries' rights issue update, Rajit Rajoriya- Equity Research Associate, Angel Broking said," Auto parts maker Minda Industries' board has fixed the issue price for its Rs 250 crore rights issue.  Company will issue right at issue price of Rs250 per Equity Share, 1 fully paid-up Equity Share for every 27 Equity Shares held by eligible shareholders of the Company as on the record date. The record date for the purpose of determining the equity shareholders who are entitled to receive the rights entitlement in the Rights Issue is August 17, 2020. Issue will open on 25th Aug 2020 and will close on 8th September 2020. "

1. 18 AM: Real estate sector update

Commenting on the outlook for real estate sector, Vikas Garg, Deputy Managing Director, MRG World said, "The demand and supply chain in realty is majorly affected by the ongoing social scenario. Coming year would be phenomenal for affordable housing as first time homebuyers and people living on rent are looking for a roof over their heads. Due to the price bracket offered and the government's dedicated support through schemes like CLSS will help the segment gain steam. Capital infusion in this sector will also have a direct impact on the country's economy, and would accelerate the pace for the required recovery."

1. 06 PM: Metropolis Healthcare Q1 result update

Commenting on 1QFY21 result of Metropolis Healthcare, Keshav Lahoti- Associate Equity Analyst, Angel Broking said,"Metropolis Healthcare Q1FY21 numbers were above our expectation. From 62.6% revenue degrowth (including covid testing) YoY in April'20, the Company has registered mid double digit revenue growth in July'20. We expect non-covid business to be back to normal from Q3FY21 onwards. We expect Covid-19 will speed up the pace of consolidation in the industry. We are positive on the long term prospects of the Company given expected long term growth rates of ~15% CAGR, stable margins profile and moderating competitive intensity."

12.47 PM: IndiGo shares gain over 8%

InterGlobe Aviation share price rose in early trade today after  private equity firm Westbridge Capital bought 5.43 million shares or 1.41% stake in the firm.  Share price of InterGlobe Aviation Ltd, which runs India's largest domestic airline IndiGo, gained up to 8.7% to Rs 1116.65 against previous close of Rs 1,034 on BSE.

InterGlobe Aviation share price rises 8% after Westbridge Capital buys 5.43% stake

12. 23 PM: Market erases gains

Sensex and Nifty erased early gains and traded flat with negative bias on Thursday, amid mixed global equities. Traders said gains were erased over worries of rising coronavirus cases. Investors are also keeping an eye out for the release of CPI data scheduled later today. Sensex was falling 43 points at 38,326 and Nifty was flat at 11,308.

12. 02 PM: Top losers and gainers

Kotak Bank, Cipla, Sun Pharma, Britannia, Dr Reddy were among the laggards today on NSE, while HCL Tech, Tech Mahindra, SBI, Eicher Motors and Tata Motors were among the top gainers

11. 52 AM: Gold prices fall for fourth session

Gold price in Indian commodity market recovered from heavy losses registered yesterday and traded above Rs 51K mark, amid mild recovery in global markets.

Overseas, gold and silver prices recouped from the worst fall in seven years and traded 1% higher on Thursday's session as bleak economic data strengthened concerns over economic slowdown due to the Covid-19 pandemic. A weak dollar also made gold cheaper for holders of other currencies. The dollar index slipped 0.2% against rivals today.

Gold price falls for 4th day, trades above Rs 51K mark

11. 41 AM: IT stocks top gainers

IT stocks were rising on Thursday's session. Trump administration has relaxed some rules for H-1B visas holders allowing them to enter the United States for those continuing employment with the same employer. TCS was the top gainer in the Sensex pack, rising around 2 per cent, followed by Tech Mahindra and Infosys.

11. 34 AM: Top gainers and losers

TCS, followed by NTPC, Tech Mahindra, ONGC, SBI, Infosys and Tata Steel were among the top gainers today.  On the other hand, Bharti Airtel, ITC, Maruti, Sun Pharma and HDFC were among the laggards.

11.10 AM: Rupee opens unchanged at 74.83 per dollar

The rupee opened on a flat note at 74.83 against the US dollar on Thursday, unchanged from its previous close despite a weak dollar, FII inflows and positive opening in domestic equity markets.

After opening flat, the local unit later fell by 2 paise to 74.85, as against its previous close of 74.83 against US dollar, even as Sensex, Nifty were trading in the positive territory.

Rupee vs Dollar: Rupee opens unchanged at 74.83 per dollar

10. 55 AM: Nifty outlook

Geojit Financial said in a note,"Expecting 11375-11444 region that was discussed on the day before, could be a bit optimistic for the day, despite the surge yesterday in the second half. Favoured view expects 11340-11375 region to turn upside attempts lower and force another consolidation without breaching 11250. Post this consolidation, a directional move to either 11600 or 10640 would be in line, and until 11250 holds, we would favour the 11600 move.

10.43 AM: Coronavirus toll

In India, coronavirus cases surpassed 23.95 lakh mark today, with total deaths standing at 0.47 lakh. Worldwide, there are 208 lakh confirmed cases and 7.47 lakh deaths from COVID-19 outbreak.

10.33 AM: Tata Power rises 4%

Shares of Tata Power Company Ltd jumped nearly 4% after the company posted higher quarterly profit. The company's consolidated net profit grew by 10% to Rs 268 crore for quarter ended June as against a net profit of Rs 243 crore during the same period a year ago.

10.28 AM: Oil prices today

Oil price bounced back after data showed US oil inventories fell more than expected. Brent crude futures, the global oil benchmark, fell 0.18 per cent to USD 45.35 per barrel.

10. 14 AM: Global cues

Asian markets were trading positive tracking overnight gains in US supported by technology stocks. Australia's jobs report will be out today.

Wall Street closed higher amid signs of slowing down in coronavirus spread and better economic data.

European markets closed higher after a choppy start as investors gave more weight to possibility of economic recovery from the pandemic.

10.05 AM: Gold outlook

On London spot technical outlook, Geojit Financial Services said in a note, "Pullbacks are likely in the initial hours, but it is required to sustain above $1980 to continue the momentum. Else, likely for corrective selling pressure towards $1860 followed by $1780 levels for the day."

As per the brokerage, MCX Gold August, resistance is placed at 53,600 and support is at 50,450/49,200. For MCX Silver August futures, the resistance is at 70,120/72,980 and the support is placed at 60,100.

9. 46 AM: Gold prices today

The yellow metal continued bearish momentum for the fourth session, although traded 0.50% lower or Rs 310 at Rs 51,944, after hitting an intraday high of Rs 52,365. This was against the previous close of Rs 52,254 per 10 gm. MCX gold futures trade almost Rs 4,240 lower than the lifetime high of Rs 56,191 per 10 gm, hit last Friday.

9. 32 AM: Nifty outlook

As per Reliance Securities,  "NSE-NIFTY breached six sessions old rising trend with a minor decline. On the daily chart, the index has formed Tri Star Bearish pattern. Tri-star pattern form when three consecutive doji candlesticks appear at the end of prolonged trend. Any sustainable move below the low of its third doji (placed at 11,243 mark) will confirm the bearish reversal in the index. That could lead the index towards 11,080 and 10,845 levels, which coincides with its 20-day EMA and 200-day SMA, respectively. In the meanwhile, near-term consolidation or a minor decline cannot be ruled out. On the higher side, the index will face hurdle at around 11,435 mark.

As for the day, support is placed at around 11,260 and then at 11,212 levels, while resistance is observed at 11,339 and then at 11,370 levels."

9. 23 AM: FII/ DII action

Foreign portfolio investors (FPIs) bought shares worth Rs 351.15 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 939.67 crore in the Indian equity market on 12 August 2020, provisional data showed.

9. 15 AM: Opening session

Sensex and Nifty opened on a bullish note on Thursday, extending last week's gains amid positive global equities. SGX Nifty was rising 30 points higher, indicating positive trend in domestic grounds today. Sensex was rising 95 points at 38,465 and Nifty was trading 37 points higher at 11,346.

9. 08 AM: Stocks in news

Hero MotoCorp, Tata Steel, Eicher Motors, Grasim Industries, Godrej Industries, Prestige Estates are among the top companies that will be reporting their April-June quarterly earnings

Stocks in news: InterGlobe Aviation, Ashok Leyland, Aurobindo Pharma, Indiabulls Housing, Tata Power

8. 50 AM: Global markets

Overseas, Asian stocks are mostly trading higher following a surge in the U.S. markets overnight. Traders shrugged off uncertainty over a second coronavirus stimulus bill after the Treasury Secretary Steven Mnuchin said the White House is open to resuming coronavirus aid talks with Democrats.

8. 40 AM: Technical outlook

As per Nifty's technical indicators, support is placed at around 11,290 and then at 11,257 levels, while resistance is observed at 11,364 and then at 11,406 levels."

Commenting on markets' closing today, Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said," Markets continued in a range but managed to keep above 11250. We are in a market where dips can be bought into - the target for the Nifty should be 11500. A support or stop loss can be placed below 11100."

8. 35 AM:Earnings today

Hero MotoCorp, Tata Steel, Eicher Motors, Grasim Industries, Balkrishna Industries, Power Finance Corporation, Trend, Godrej Industries, Prestige Estates and Endurance Technologies are among companies which will announce their April-June quarter results today.

8. 30 AM: Closing yesterday

Sensex and Nifty ended flat with negative bias on Wednesday, on back of heavy selling pressure in pharma stocks, amid negative global equities. Reversing gains after three straight sessions, Sensex ended 37 points lower at 38,369 and NSE Nifty 50 closed 14 points lower at 11,308. On Tuesday, Sensex ended 244 points higher at 38,407 and Nifty closed 52 points higher at 11,322.

Sensex, Nifty end lower after three sessions as pharma stocks fall

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