Sensex, Nifty Highlights on August 10: Sensex and Nifty ended on a bullish note on Monday, extending last week's gains amid positive global equities. Sensex ended 141 points higher at 38,182 and Nifty gained 60 points to 11,274. Last Friday, Sensex ended 15 points higher at 38,040 and Nifty gained 13 points to 11,214. Meanwhile, April-June quarterly earnings announcements by Titan, Power Grid, IPCA Labs, Bank of Baroda, AstraZeneca Pharma, TTK Prestige 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. 55 PM: Closing session
Sensex and Nifty ended on a bullish note on Monday, extending last week's gains amid positive global equities. Sensex ended 141 points higher at 38,182 and Nifty gained 60 points to 11,274.
3. 33 PM: Nifty technical outlook
Commenting on Nifty's outlook, Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said," We have kept above the 11250 level which is a bullish sign. The Nifty should attempt 11500 as its next price target. The support continues to be at 11100."
3. 20 PM: Market outlook
Commenting on market's outlook, S Ranganathan, Head of Research at LKP Securities said,"Todays Trade was characterised by heightened activity in Defence & Pharmaceutical stocks, the former due to the proposed changes being implemented favoring domestic producers and the latter due to earnings beat on the quarterly results. On the broader market too, we witnessed investor interest across stocks in the Sugar sector as large integrated sugar complexes have demonstrated success in their Distillery operations".
3.00 PM: Dr. Reddys Labs - Q1FY21 result update
Commenting on Dr. Reddys Labs - Q1FY21 result, Centrum Broking said," DRL is better poised to scout more brand acquisition deals focused in India even beyond Wockhardt, given the net-cash balance sheet. DRL CGMP compliance status is at best level, as EIRs have been received for all pending facilities. Given the all positive outlook on the business and improving financials we have increased the multiple for the stock to 25x FY22E. Earnings have been increased slightly by 2%/ 5%, for FY21E/FY22E, respectively. We maintain our Buy recommendation on DRL with target price at Rs 5,200. DRL is trading at 25.5x FY21E EPS of Rs177.6 and 22x FY22E EPS of Rs205.4.
2. 48 PM: Pfizer Q1 reuslt update
Commenting on Pfizer - Q1FY21 result, Centrum Broking said," Pfizer's management is hopeful of achieving in-line or slightly better growth than its MNC peers. Meanwhile, management has highlighted its focus on protecting minority shareholder interest. FY21E expected to be subdued given the impact of pandemic and Up-John transaction. However, we believe FY22E could be better on both revenue growth and margin front. The key risk on the stock remains Prevnar13 status and any further expansion of NLEM portfolio in the domestic market. At CMP of Rs 4,391 the stock trades at 31x FY21E EPS Rs 140.5 and 33x FY22E EPS of Rs 134.2. We maintain our Buy rating on the stock with target price of Rs 5,000, valued at 37x FY22E.
2. 23 PM: Mahindra & Mahindra share price climbs to new 52-week high
The share price of Mahindra & Mahindra gained over 6% to a touch a new 52- week high on Monday's opening trade after the company reported its performance for the Q1FY21.
Mahindra & Mahindra registered a 97% YoY fall in its net profit to Rs 67.8 crore for the quarter ended June 2020, as against Rs 2,259.74 crore in the same period last year. M&M said profit before the exceptional gain of Rs 29 crore fell 96% YoY to Rs 39 crore for the quarter.
Following the result update, Mahindra & Mahindra stock touched an intraday as well as new 52-week high of Rs 640.55, rising 6.65% on BSE as against the earlier closing of Rs 600.60 on BSE. M&M stock has gained after 2 days of consecutive fall.
1. 44 PM: Real estate sector update
Speaking on outlook for real estate sector Raman Gupta, Director - Branding & Construction, GBP Group said, "Reverse migration among the working professionals from metros and NRIs will lead to increase in demand of property in Tier II and tier III cities. Talking especially about the northern region, Tricity and its peripheries are witnessing an upsurge laying the foundation for a market that is going to grow exponentially from here.Also, India is on its path of becoming the manufacturing hub, it will create significant demand for office spaces, business parks and other commercial complexes in the coming years."
1. 23 PM: Defence stocks rally
Shares of defence companies were rallying on Monday's opening trade after India's Ministry of Defence announced over the weekend banning of 101 defence weapons and military platform items.
Bharat Heavy Electronics Limited (BHEL), Larsen & Toubro, Hindustan Aeronautics Limited (HAL), Bharat Forge were trading higher, following the reports as the ban could bring an additional impetus for India's defence companies.
1. 11 PM: Saudi Arabia cuts off oil supply
Pakistan has not received oil on deferred payments from Saudi Arabia since May as a deal signed between the two close allies for provision of $3.2 billion worth of the fuel under the arrangement expired two months ago. The $3.2-billion Saudi oil facility was part of the $6.2-billion Saudi Arabian package announced in November 2018 to ease Pakistan's external sector woes, the Express Tribune reported.
12. 50 PM: DIVI Labs hist all time high today
Divi's Laboratories share price hit an all-time high in trade today after the pharma firm reported better-than-expected earnings for the quarter ended June. Share price of Divi's Laboratories climbed 16% to a fresh high of Rs 3,228 against previous close of Rs 2,748 on BSE. The stock has climbed 72.44% since the beginning of this year and risen 91.13% in one year.
12. 28 PM: Earnings Today
Titan, Power Grid, IPCA Labs, Bank of Baroda, AstraZeneca Pharma, TTK Prestige, Akzo Nobel, KEC International, HEG, Cochin Shipyard, Ujjivan Financial Services, Equitas Holdings, Aban Offshore, Coffee Day Enterprises and Caplin Point Labs, among others will announce their Q1 results today.
12.09 PM: Sobha Q1 results update
Commenting on 1QFY21 results of Sobha, Yash Gupta, Equity Research Associate, Angel Broking sad," Sobha Ltd reported a washout quarter for Q1FY21. Consolidated revenue from operations for Q1FY21 stood at Rs 350 crores down by 70% YoY from Rs 1,176.7 crores in Q1FY20. Revenue from real estate down by 73.6% at Rs 222.9 crores and revenue from contractual & manufacturing down by 61.7% at Rs 127 crores.Total area sold for the quarter at 0.65 Mn sq ft as compared to 1.06 Mn sq ft in Q1FY20 down by 39%.Booking value for the quarter stood at Rs 488 crore.Profit after tax for the quarter stood at ?6.6 Crore down by 92.7% as compared to Rs 90.6 Crore in Q1FY20.We remain cautious on the sector as well as on the company as demand is likely to be impacted due to covid 19. The company also has debt of Rs 3,021 crores which will weigh on the stock."
11. 56 AM: Divi's Lab Q1 result
Commenting on 1QFY21 results of Divi's Lab - Yash Gupta, Equity Research Associate, Angel Broking said,"Divi's Laboratories reported an excellent set of numbers in Q1FY21. Consolidated revenue from operations for Q1FY21 stood at Rs 1,730 crores up by 48.8% YoY from Rs 1162.8 crores in Q1FY20.Gross margins stood at 63% in Q1FY21 up by 190 bps from 61.1% in Q1FY20.EBITDA up by 80.9% YoY to Rs 700 Crores as compared to Rs 387 Crores in Q1FY20. Due to increase in profit margins and saving in other expenses and employee cost.Profit after tax for the quarter stood at Rs 492 Crore up by 80.% as compared to Rs 272 Crore in Q1FY20. Company posted above expected set of numbers for the quarter."
11. 47 AM: Supreme Court hearing today on AGR dues today
Market anaysts said investors will be also looking out for AGR hearing decision by Supreme Court today at 2 PM. If Supreme Court approved desired time line to repay AGR dues then will be positive for Telecom player like Vodafone, Bharti Airtel and Banks also, those who have given loan to telecom companies.
11. 34 AM: Rupee opens flat
Indian rupee, the local currency opened on a flat note at 74.96 per US dollar on Monday's opening bell, tracking weakness in Asian peers even as domestic equities started on a positive note.
The rupee opened weak at 74.96 at the interbank forex market, down 3 paise over its previous close of 74.93. The domestic unit, however, soon pared the losses and was trading 2 paise higher at 74.91 against the greenback.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.11 per cent to 93.32.
11. 27 AM: Top gainers and losers
M&M, followed by L&T, Kotak Bank, SBI, Bajaj Finance, Sun Pharma, ITC and HDFC duo. On the other hand, Maruti, Tata Steel and Nestle India were the laggards.
11. 18 AM: Market rises further
Sensex and Nifty traded on a bullish note on Monday, extending last week's gains amid mixed global equities. Sensex was trading 358 points higher at 38,393 and Nifty gained 112 points to 11,326.
11.02AM: Cipla shares gain over 6%
Cipla share price gained over 6% today after the firm reported a 26.58 per cent rise in its consolidated net profit in June quarter. Cipla share price rose 6.64% in early trade to fresh 52 week high of Rs 777 against earlier close of Rs 728.60 on BSE.
Cipla stock price has risen 8.09% in one week, 20% in one month and 60.52% since the beginning of the year. Cipla stock opened with a gain of 4.78% at Rs 763.40 on BSE.
10. 41 AM: Gold outlook
Geojit Financial in its commodity report said," As long as prices stay above $2000 expect rallies to continue with next upside targets are seen at $2080/2145 levels. However, an unexpected turn below $1920 could negate the extreme bullish outlook and may see corrective selling pressure. For MCX Gold Oct futures, the brokerage targeted resistance at 55,480 and support at 54,000. For MCX Silver August future, resistance is placed at Rs 76,120/81,000, while the support is at 71,500.
10. 33 AM: Gold trades near record high
Gold futures on Multi Commodity Exchange on Monday were trading Rs 210 lower at Rs 54,999 per 10 gm against the previous close of Rs 54,789 per 10 gm. Gold August Futures touched an intraday high of Rs 55,080 today. Gold Futures has touched an all-time high of Rs 56,191 in the previous session.
Silver September futures was trading Rs 960 higher at Rs 75,120 per kg today, after hitting a lifetime high of Rs 77,949 in Friday's session.
10. 23 AM: Nifty technical outlook
On Nifty near term trend, Angel Broking in its Technical derivatives report said," In our opinion, the way markets are placed, this week would be quite crucial and hence, one should be keeping a close eye on few key levels. Although the market has managed to recover well, it would be a daunting task surpassing the sturdy wall of 11300-11350. Till the time it is not conquered successfully, we advocate some caution. On the downside, a move below 11100 would lead to immediate correction towards 10950 - 10880."
10. 14 AM: Coronavirus toll
Worldwide, there are 200 lakh confirmed cases and 7.33 lakh deaths from the coronavirus COVID-19 outbreak. In India, the nnumber of infected cases has risen to 22 lakh, including 0.44 lakh fatalities.
10.00 AM: Gold outlook
On recent gold prices, Hareesh V, Head Commodity Research at Geojit Financial Services said," Rising pandemic cases and escalating US-China tensions continue to lift the safe haven demand of gold and thus prices of the commodity. However, with dollar gaining strength after the key US employment numbers and a near record high prices are likely to calm down major buying sentiments."
For technical outlook on London spot, he added," As long as the support of $1980 remains undisturbed, expect rallies to continue with immediate resistance seen at $2080 followed by $2280 levels later. A direct drop below $1880 could negate the outlook and take prices lower."
9. 52 AM: Overseas gold
Spot gold hit a record high of $2,075.2 per ounce today and last stood at $2,064. Spot gold hit a record high of $2,072.50 on Friday. Meanwhile, Comex gold was trading 0.75% higher at $ 2,024 per ounce, after hitting an all-time high of 2,063 in the previous week. Spot gold was down 0.3% to $2,028.90 per ounce, while US gold futures rose 0.6% to $2,039.20.
This was on back of bounce in dollar, amid data showing US nonfarm payrolls increased 1.763 million in July
Silver also followed trend and fell 1.2% to $27.96 per ounce, after hitting a seven-year high of $29.8384 per ounce last week. Silver has gained 60% so far this quarter, overseas.
9. 44 AM: Market outlook for the week
Expressing views on the week ahead, Vinod Nair added, "Global markets are awaiting and will definitely be impacted by the heightened US-China tensions and imminent Chinese reaction. Heightened Chinese aggression could have a negative impact on our markets in the near term. However, there could be a silver lining for Indian markets in the long term, with global investors hesitating to invest in Chinese companies. For lack of options, some of this money could find its way into Indian companies, provided the right ecosystem is built. Earnings specific action will likely continue next week, with indices searching for direction in the near term. Accumulation continues the best strategy."
9. 25 AM: Global markets
In Wall Street, the S&P 500 retreated from a near six-month high on Friday amid sharp slowdown in US employment growth data.
Overseas, Asian stocks were trading lower on Monday as investors kept one eye on flaring tensions between the United States and China with President Donald Trump's move to ban WeChat and TikTok. Investors also kept cautious on US fiscal stimulus after talks between the White House and Democrat lawmakers broke down. Japanese and Singaporean markets are closed for public holidays.
9. 18 AM: FII and DII action
Foreign portfolio investors (FPIs) bought shares worth Rs 397.32 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 438.62 crore in the Indian equity market on 7 August,
9. 12 AM: Stocks to watch today on August 10
Cipla, IndusInd Bank, Siemens, Punjab & Sind Bank, Concor among others are the top stocks to watch out for in Monday's trading session
9. 08 AM: Opening bell
Sensex and Nifty opened on a bullish note on Monday, extending last week's gains amid positive global equities. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 30 points at the opening bell. Sensex was trading 279 points higher at 38,301 and Nifty gained 84 points to 11,299.
9.00 AM: Global cues
Traders will also keep a track on global markets as the United States is likely to announce another round of stimulus this week. The relief package, which is being discussed between lawmakers, is likely to boost market sentiments domestically and globally.
8. 55 AM: Market update for week ahead
Going ahead, analysts expect market to see some correction amid uncertain environment in wake of rising coronavirus cases. With Reserve Bank policy announcements are already out, investors will keep an eye on macro data, US-China tensions and coronavirus cases which will set tone for the markets. Development on a fresh stimulus package in the US will also be watched closely by the traders.
8. 40 AM: Nifty outlook
RelianceSmart Money in its daily note said," NSE-NIFTY resumed its weekly rising trend and regained 11,200 mark. In the last week, the index lost once out of five trading sessions and reported rise of 1.3%. Due to further rise in the index, its key technical indicator has remained in favour of bulls. This could lead the index towards its upper band of the narrow range (placed at around 11,340 level) and then at around 11,435 mark. In case of decline, the index will initially find support around its 20-day EMA and then around its 200-day SMA, which are now placed at 11,005 and 10,850 levels, respectively.
As for the day, support is placed at around 11,160 and then at 11,106 levels, while resistance is observed at 11,250 and then at 11,286 levels."
8. 30 AM: Closing on Friday
After a volatile trading session, Sensex and Nifty ended on a flat to positive bias on Friday, amid weak global markets. Investors' sentiments were also tepid as domestic coronavirus cases surpassed the 2 million mark.
Sensex ended 15 points higher at 38,040 and Nifty gained 13 points to 11,214.
During last week, Sensex has risen 433 points or 1.15%, while Nifty has gained 140 points or 1.27%