Sensex, Nifty Highlights on August 6: Domestic benchmark indices Sensex and Nifty ended on a bullish note on Thursday, after the Reserve Bank of India in its MPC meet decided to keep the key lending rate or repo rate unchanged at 4 per cent. Market indices gained today, backed by index heavyweights HDFC twins, in line with bullish global equities. Reversing trend from yesterday's muted session, the 30-share BSE benchmark Sensex ended 362 points higher at 38,025 and broader NSE Nifty advanced 98 points to 11,200. Yesterday, Sensex ended 24 points lower at 37,663 and Nifty gained 6 points to 11,101. Meanwhile, April-June quarterly earnings announcements by Vodafone, Adani Power, Lupin, HPCL, JK Tyre, Adani Enterprises among others 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
4. 26 PM: Quote on RBI MPC announcement
Dr. Joseph Thomas, Head of Research - Emkay Wealth Management on RBI's MPC announcement said," As expected, it is status quo on rate, and the emphasis is more on continuing with the accommodative stance, and liquidity enhancement measures, and the restructuring of the stressed loan portfolios. The outlook for growth and inflation continues to be uncertain, and contraction in GDP growth is expected and inflationary pressures are expected to remain elevated in Q2 and it may moderate in Q3."
4.04 PM: Quote on RBI statement
Commenting on today's RBI's MPC announcement, Nikhil Gupta, Economist - Institutional Equities, Motilal Oswal Financial Services said," RBI policy has been very balanced. While interest rates have been kept unchanged, the intention to support the borrowers and the lenders through this pandemic crisis is clear. The final impact would be determined by the recommendations of K V Kamath Committee, which will be very closely watched."
3. 55 PM: Market at close
Domestic benchmark indices Sensex and Nifty ended on a bullish note on Thursday, after the Reserve Bank of India in its MPC meet decided to keep the key lending rate or repo rate unchanged at 4 per cent. Market indices gained today, backed by index heavyweights HDFC twins, in line with bullish global equities. Reversing trend from yesterday's muted session, the 30-share BSE benchmark Sensex ended 362 points higher at 38,025 and broader NSE Nifty advanced 98 points to 11,200.
3. 34 PM: DLF Q1 results update
Commenting on 1QFY21 results of DLF, Yash Gupta, Equity Research Associate, Angel Broking said,"Rental revenue for the quarter stood at Rs 656 Crores as compared to Rs 723 Crores in Q1FY20 down by 9.3%. Company reported a loss before tax of Rs 179.48 Crore as compared to profit before tax of Rs 158.86 Crore in Q1FY20. Net loss for the quarter stood at Rs 71.52 Crore as compared to profit of Rs 413.94 Crore in Q1FY20. We remain cautious on the sector as residential demand will be impacted due to covid 19. We expect residential demand to stabilize in H2FY21. On the commercial rental side we expect some pressure to continue in Q2FY21 also."
3. 21 PM: Whirlpool India Q1 earnings update
Commenting on 1QFY21 results of Whirlpool of India, Amarjeet Maurya, AVP - Mid Caps, Angel Broking said,"For 1QFY2020, Whirlpool of India(WIL)'s top-line declined by ~48% yoy to Rs1,027cr. Top-line was negatively impacted mainly due COVID-19 lockdown. On the operating front, the company reported contraction in margins, down 1,078bps yoy at 4.5%. Operating margin down mainly due to negative impact of operating leverage. On the bottom-line front,WIL reported de-growth of ~92% yoy to Rs16cr due to lower sales and poor operating performance."
3.10 PM: Expert outlook of real estate sector
Shishir Baijal, Chairman & Managing Director, Knight Frank India on RBI's MPC announcement said,"Today's announcement by the RBI Governor is welcome as it addresses one of the long-standing requests by the real estate sector. The loan resolution plan, which allows for payment moratorium up to 2 years, for corporate and personal borrowers should provide a breather to stressed real estate developers and individual borrowers in the housing segment alike. We look forward to the recommendations of the Kamath Committee on the details for the real estate segment. We also welcome the announcement of further liquidity infusion to the tune of INR 5000 Crores to National Housing Board (NHB) which should be able to provide some relief during these times of crisis."
2. 56 PM: Realty sector update on RBI Monetary policy
Commenting on RBI's monetary policy announced today, Ram Raheja, Director at S Raheja Realty said,"The RBI has kept the repo rate unchanged at 4%, while continuing the basic accommodative stance of the policy in response to the objective of revival of growth. It was widely expected that the RBI was likely to continue with the pause till there is greater visibility on the inflation front. At this juncture, It's definitely a wise move to fuel liquidity instead of a further rate cut. A sentiment upswing will follow among developers and buyers alike given the infusion of additional liquidity to NABARD and National Housing Bank. The MSME loan restructuring will help many companies which are still in distress due to the lockdown."
2. 39 PM: Quote on JK Lakshmi Cement 1QFY21 results
Commenting on JK Lakshmi Cement 1QFY21 results, Keshav Lahoti, Associate Equity Analyst, Angel Broking said,"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. Company reported less volume de-growth of 18% YoY compared to other cement companies that reported its numbers owing to better regional mix. Overall numbers were marginally below street expectations. Going forward, picking up construction work in urban areas and no local lockdowns will be key for the Company."
2. 23 PM: Market update
Domestic benchmark indices Sensex and Nifty traded on a bullish note on Thursday, after the Reserve Bank of India in its MPC meet decided to keep the key lending rate or repo rate unchanged at 4 per cent. Market indices gained today, backed by index heavyweights HDFC twins, in line with bullish global equities. 30-share BSE benchmark Sensex was trading 213.30 points higher at 37,876.63 and broader NSE Nifty advanced 63 points to 11,164.65.
2. 12 PM: RBI announcement expert outlook
Commenting on RBI's monetary policy announced today, Jyoti Roy, DVP-Equity Strategist, Angel Broking said,"Keeping in mind the fragile macroeconomic and financial conditions, the RBI has announced additional policy measures to enhance liquidity support for financial markets, improve the flow of credit and further ease financial stress caused by COVID-19 disruptions. Few of the additional measures announced by the RBI include additional special liquidity facility of Rs 10,000 crore which will be provided at the policy repo rate. While an amount of Rs 5,000 crore will be provided to the NHB an amount of Rs 5,000 crore will be provided to NABARD. This move will help improve credit flow to the HFC, smaller NBFCs and micro finance companies. The RBI has also raised the permissible loan to value ratio (LTV) for gold loans taken for non-agricultural purposes from 75% to 90%."
2.07 PM: Quote on Inox Leisure 1QFY21 results
Commenting on 1QFY21 results of Inox Leisure, Keshav Lahoti, Associate Equity Analyst, Angel Broking said,"For the quarter, Company has not booked any amount for rent and CAM charges as it has evoked force majeure clause. Although management was confident no liability for it will arise in future. In 41 screens at least 75% of work is already completed in each screen and is expected to be opened in this financial year for which Rs 28-30 cr more capex needs to be incurred. Company will restart the capex cycle once they reach normalcy. Multiplex industry missed the bus to start their operation in unlock 3.0 also. Even if they are allowed to be opened by the Ministry of Home Affairs then we believe all states will not allow to open theatres at one go in their respective states. Initially for a few months industry will have to function at lower occupancy as people will avoid visiting theatres due to fear of Covid-19".
1. 53 PM: RBI announcement quote
Commenting on RBI's monetary policy announced today, R K Gurumurthy, Treasury Head at Lakshmi Vilas Bank said," While there was nothing on key policy rates to write home about, a few developmental measures with regulatory tweaks will go a long way in providing stability to key sectors of the economy. Will have to wait and see detailed circular guidelines for the finer aspects of these measures as one of the measures that relates to capital charge on debt schemes of mutual funds could be a game changer" .
1. 42 PM: Quote on MSME sector outlook after RBI MPC meet
Commenting on the outlook of MSME sector on RBI MPC Outcome, Jimeet Modi, Founder & CEO, Samco Group said,"MPC for one-time restructuring of loans. Various decisions such as no further extension in the moratorium period on loans and increase in the scope of restructuring of loans, demarcates RBI's intention to maintain the integrity of Indian banking sector. In other countries, we have seen politics merging with monetary policy, but the RBI has clearly stood on merits without any political compulsion. Given the fluid situation across the world, they have indeed done what is best for Indian financial markets."
1. 34 PM: Gold outlook
Commenting on Gold, Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking said,"For the first time in the past 10 years, gold prices in the international markets have touched all-time highs of $2050 per ounce while on the MCX, gold futures have been trading at Rs.55,500 mark the lifetime highs for the yellow metal and trades in an unchartered territory. The pandemic has slowed the global economy drastically because of which the belief of the investors is surmounted to the precious, safe haven, gold and this faith will continue to bring in more momentum in gold prices in the months ahead, unless, global economy shows any signs of green-shoots of recovery."
1. 22 PM: Real estate sector update on RBI announcement
Speaking on RBI's announcements for real estate sector, Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and Proptiger.com said, "As the economy is still to recover to pre-covid levels and the risk to aggregate demand in the near future remains high, it is important that the transmission of past rate cuts are more effectively passed on to consumers as well as industry. However, It is indeed heartening to hear that the average lending rates have fallen by close to 90 bps since March 2020. Additionally, the liquidity in the banking system seems to be at comfortable levels."
1.05 PM: Quote on RBI announcement
On RBI's announcement, Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said,"RBI answered the classic dilemma of " to cut or not to cut" with a clear no cut announcement. The pause in policy rates and accommodative stance reflects the central bank's concern about inflation which it feels has risk on the upside. The RBI Governor's remark on the disconnect between the financial market and the real economy is a reflection of the central bank's concern about the exuberance in the market. The central bank has preferred to play it safe with a pause even while reiterating that further space is available for more monetary action.The setting up of KV Kamat committee to advise on resolutions is an excellent decision."
12. 54 PM: RBI keeps repo rate unchanged at 4%
RBI Governor Shaktikanta Das, during a presser at 12 noon today, said the MPC had decided to keep the key lending rate or repo rate unchanged at 4 per cent. He said other rates, including reverse repo rate (3.35 per cent) have also been kept unchanged while keeping the stance "accommodative".
He added that the real GDP growth of the country is expected to remain in the contraction zone. "Real GDP in the first half of the year is expected to remain in the contraction zone. For the year 2021 as a whole real GDP growth is also estimated to be negative," said Governor Das during the MPC presser on Thursday.
12. 45 PM: Market rises further
Domestic benchmark indices Sensex and Nifty gained further momentum on Thursday, after the Reserve Bank of India in its MPC meet decided to keep the key lending rate or repo rate unchanged at 4 per cent. Market indices gained today, backed by index heavyweights HDFC twins, in line with bullish global equities. Sensex traded 504 points higher to 38,188 and Nifty was rising 140 points higher to 11,124.
12.33 PM: Cadila Healthcare share price slips post Q1 earnings
Cadila Healthcare share price was trading lower on Thursday after the company reported earnings for the quarter ended June 2020.
Cadila Healthcare has reported a 4.11% YoY growth in consolidated net revenue to Rs 3,696 crore for Q4FY20 from Rs 3,496.3 crore in Q1FY20. The company registered a 50% growth in its net profit at Rs 454 crore in Q1FY21 from Rs 303.6 crore.
Following the result update, Cadila Healthcare shares fell 1.57% to the intraday low of Rs 389.55 on BSE against the earlier close of Rs 395.95. The stock also hit an intraday high of Rs 401.80 during today's session, after opening at Rs 396. The stock price of Cadila Healthcare has fallen 2.28% in the last 2 days of decline.
12. 24 PM: Top gainers and losers
ONGC, followed by Tech Mahindra, TCS, HCL Tech, NTPC, Infosys and HDFC duo were among the top gainers today, while Maruti, Axis Bank, Bharti Airtel, M&M and Reliance Industries were among the laggards.
12. 17 PM: Market update
30-share BSE benchmark Sensex was trading 213.30 points higher at 37,876.63 and broader NSE Nifty advanced 63 points to 11,164.65.
12.09 PM: Banking stocks trade higher
Banking stocks were trading higher ahead of RBI's bi-monthly monetary policy decision with benchmark indices too clocking gains in line with bullish global equities. BSE Bankex opened 156 points higher at 24,586 against previous close of 24,430.
Of 10 bankex components, seven were trading in green.
HDFC Bank (0.95%), City Union Bank (0.69%), SBI (0.65%), IndusInd Bank (0.45%), ICICI Bank 0.40%, Kotak Bank (0.33)%, and Federal Bank (0.19)% were top gainers on the index.
11. 46 AM: Market outlook
Geojit Financial in its report said," RBI event calls for preparing three possible reactions: Volatility, directional moves, or flat trades. We expect lower chances of volatility today, and place equal chance for directional moves or flat trades. Directional moves may aim for 10740 or 11600, but we are inclined to bet on Nifty remaining within a 50 point range from yesterday's close."
11. 34 AM: Rupee rises 16 paise
The rupee appreciated 16 paise to 74.78 against the US dollar in opening trade on Thursday ahead of the Reserve Bank of India's monetary policy decision.
At the interbank forex market, the domestic unit opened strong at 74.82 against the US dollar, gained further ground and touched 74.78 against the US dollar, registering a gain of 16 paise over its previous close.
It had settled at 74.94 against the US dollar on Wednesday.
11. 25 AM: Quote on HDFC QIP
Commenting on HDFC Ltd - QIP, Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking said,"HDFC Ltd on Wednesday launched a qualified institutional placement (QIP) offering to raise as much 14000cr. Fundraising will be in the form of Equity and warrant offering. We believe this fundraising in this environment would be positive for HDFC Ltd. We expect HDFC Ltd would use this capital for growth and inorganic opportunity. Moratorium reduced from 27% to 22%. 39.2% of non-individual book opted for a moratorium, However, only 10.9% of 39.2% has not paid any EMI remaining has paid part or full EMI. HDFC Ltd has one of the hight stage 3 coverage among HFC. It has more than required provision on exiting GNPA. We expect HDFC Ltd will bale to gain market share, as it has been able to raise debt at a competitive rate, whereas other players are finding it difficult to raise debt at competitive rate. At today closing price HDFC Ltd Core business is trading at 1.4x FY22 Book Value, which we believe inexpensive, considering superior management, higher provisioning on exiting non-performing asset and sufficient Capital adequacy."
11.03 AM: Global markets
Asian markets were trading mostly higher, barring China, Hong Kong and Nikkei, as uncertainty continued over the tensions between the US and China. Korean markets led gainers supported by shares of Hyundai Motors.
Stock Exchanges in Wall Street closed higher for the fourth day consecutively as investors focused on corporate earnings and on hopes of fresh coronavirus relief package. European markets closed higher as investors took cues from corporate earnings but gains were capped as economic data were weaker than expectation.
10. 55 AM: Coronavirus toll
In India, coronavirus cases neared 19.64 lakh with total deaths standing at 40,739. Worldwide, there are 189 lakh confirmed cases and 7.1 lakh deaths from the coronavirus COVID-19 outbreak.
10. 42 AM: Silver hits new high
Silver September futures was trading Rs 1,168 higher at Rs 73,061 per kg today, after hitting a lifetime high of Rs 67,672 earlier in today's session.
10. 31 AM: Gold prices trade near record highs
Gold price in India continued its upside trend and traded near record highs on Thursday, tracking strong cues from the international commodity market, as surging coronavirus casted shadow on global economic recovery.
Supported by upbeat safe-haven demand, Gold August futures on Multi Commodity Exchange were trading higher by Rs 196 at Rs 55,294 per 10 gm against the previous close of Rs 55,098 per 10 gm. Today gold futures touched an intrady high of Rs 55,340 per 10 gm. In the previous session, Gold August Futures touched an all-time high of Rs 55,597 per 10 gm.
10. 20 AM Oil prices today
Oil price jumped to five month high after witnessing a sharp fall in US crude inventories but saw higher level selling as coronavirus cases casted shadow on demand recovery. Brent crude futures, the global oil benchmark, rose 0.22 per cent to USD 45.27 per barrel.
10.09 AM: Canara Bank Q1 result update
Commenting on Canara Bank's Q1FY21 result, Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking said,"Canara Bank reported a mixed set of numbers, advance grew 3.3% YoY sequentially marginally declined. PAT at Rs.406cr vs loss of Rs.605cr for the same quarter previous years. Moratorium Book at 22%. NIM at 2.84% which improved YoY and QoQ, CASA increased 240bps to 33.8%, Deposit grew 4.56% YoY, and marginally improved QoQ. Key monitorable for Canara bank would be moratorium number at the end of Aug, and when the return on equity improves."
9. 43 AM: Gold outlook
Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking said," Gold has been really precious for investors in 2020 with an astounding double digit returns of 34 percent YTD in dollar terms and still continues its shine. The liquidity push by Central Banks across the globe has been a deciding factor for premium in gold prices as the pandemic continues to ravage global economy. The easy money policy is resulting in to chasing higher yields on asset classes which are considered to be safe in times of uncertainty, and nothing like gold, the safe haven asset which has historically been a go to investment for investors. Unless, global economy starts its recovery path, precious metals will continue to shine for the rest of 2020."
On Silver, he added,"Silver prices will eventually move higher towards $27.5 per ounce in the international market and Rs.75000 per kg in the domestic markets, taking in to consideration the recent momentum in the metal."
9. 22 AM: Market outlook
Ajit Mishra, VP - Research, Religare Broking said," Participants are keeping a close eye on RBI monetary policy outcome which is scheduled tomorrow and that would set the tone for the rest of the day as well. While the expectations are mixed on key rates, we feel commentary on the moratorium and future outlook would hold importance. We would suggest maintaining extra caution before the event and advise preferring hedged bets."
9. 15 AM: Stocks in news
HDFC, Alkem Labs, DLF, Adani Gas, Canara Bank, Max Financial among others are the top stocks to watch out for in Thursday's trading session.
9. 10 AM: Opening session
Domestic benchmark indices Sensex and Nifty opened on a positive note on Thursday, in line with bullish global equities. Sensex traded 140 points higher to 37,806 and Nifty was rising 40 points higher to 11,140. Yesterday, Sensex ended 24 points lower at 37,663 and Nifty gained 6 points to 11,101.
8. 55 AM: Global cues
Globally, markets in the Unites States and Europe were trading higher on Wednesday. European stocks were up after falling in six of the last eight sessions as investors digested some of major corporate earnings reports, but weak euro zone economic data restricted gain. Wall Street shares were also trading higher amid reports that White House negotiators may reach a deal on a new coronavirus stimulus package by the end of the week.
8. 50 AM: RBI MPC meet
Analysts said investors took a cautious stance and booked profits as they are keeping an eye on whether RBI extends moratorium beyond August 2020. The Monetary Policy Committee will announce its policy stance at 12 noon today, where the central bank is widely expected to cut repo rates. Experts are, however, divided over the possibility of another rate cut by the RBI arguing that one-time loan restructuring is more essential at this juncture to combat the coronavirus-led economic disruption. While loan restructuring could postpone the recognition of stress in the lender book in the near-term, high share of such assets would be credit negative.
8. 40 AM: Earnings today
April-June quarterly earnings announcements by Vodafone, Adani Power, Lupin, HPCL, JK Tyre, Adani Enterprises among others will also set the tone for the stock market today. Other companies that are set to announce results today are Bayer Cropscience, HCL Infosystems, Lemontree Hotels, Whirlpool of India.
8. 30 AM: Closing on Wednesday
Domestic benchmarks Sensex and Nifty turned cautious ahead of the RBI monetary policy meet outcome and ended marginally lower on Wednesday, despite positive global equities. While Sensex ended 24 points lower at 37,663 and Nifty gained 6 points to 11,101. Yesterday, Sensex ended 748 points higher at 37,687 and Nifty gained 211 points to 11,102.