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Share Market Highlights: Sensex ends 421 points lower, Nifty at 11,202; pharma shares outperform

India Stock Market Highlights Today: Infosys, HCL Tech, Nestle India, M&M, Reliance Industries and Tech Mahindra were among the laggards today, while IndusInd Bank, followed by UltraTech Cement, Tata Steel, Sun Pharma, L&T and ICICI Bank were among gainers.

twitter-logoBusinessToday.In | July 29, 2020 | Updated 16:04 IST
Share Market Highlights: Sensex ends 421 points lower, Nifty at 11,202; pharma shares outperform
Share Market Highlights : Here's a look at the updates of the market action on BSE and NSE today

Sensex, Nifty Highlights on July 24: Domestic benchmarks Sensex and Nifty fell majorly on Wednesday and ended on a weak note, earsing yesterday's gains on back of weak global equities. Sensex closed 421 points lower at 38,071 and Nifty was falling 97 points lower at 11,202. Yesterday, Sensex closed 588 points higher at 38,492 and Nifty was rising 168 points higher at 11,300.

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

3. 49 PM: Closing session

Domestic benchmarks Sensex and Nifty fell majorly on Wednesday and ended on a weak note, earsing yesterday's gains on back of weak global equities. Sensex closed 421 points lower at 38,071 and Nifty was falling 97 points lower at 11,202. Yesterday, Sensex closed 588 points higher at 38,492 and Nifty was rising 168 points higher at 11,300.

3. 40 PM: Pharma shares outshine

Pharma shares were trading higher today following news that US President Donald Trump plans to reduce the prices of drugs in US,  which are the highest in the world. This would allow individuals to import prescription medications directly. NSE Pharma closed 3% higher today, with Dr REddy gaining 6%, Torrebt Pharma 4% and 3% rise in Divi Labs and Alkem stock prices.

3. 34 PM: Market outlook

Rohit Singre, Senior Technical Analyst at LKP Securities said,"  Index is in V shape recovery if we will look at weekly chart, going forward 11k mark became good support holding above 11k mark index can see current momentum to be continue towards immediate hurdle zone of 11300-11400 zone "

3. 20 PM: Maruti Q1 result update

Maruti shares were trading as top losers on NSE today, falling 2.6% intraday after the auto major reported quarterly loss for the first time in at least 15 years on Wednesday, as its production and sales were hit due to coronavirus lockdowns and supply chain disruptions. Maruti logged a net loss of 2.49 billion rupees ($33.30 million) for the three months ended June 30, compared with a profit of 14.36 billion rupees a year ago.

3. 16 PM: Dr Reddy Q1 update

Commenting 1QFY21 results of Dr.Reddy's Lab, Yash Gupta, Equity Research Associate, Angel Broking said,"Dr. Reddy's consolidated revenue from operations for Q1FY21 stood at Rs.4,418 crore up by 15% YoY from Rs.3,844 crore in Q1FY20, driven by Europe business which was up by 47.7%. Revenue from Global generic business was up by 6% from Rs.3,298 Crore to Rs.3,507.5 Crore while  revenue from API up by 88.43% from Rs.453.9 crore to Rs.855.3 crore in Q1FY21.Gross margins stood at 56.0% in Q1FY21 up by 430 bps from 51.7% in Q1FY20 on account of a favorable product mix and forex benefit. Profit before tax for the quarter stood at Rs.878.9 Crore up by 3% YoY as the base quarter had one off other income of Rs.375.9 Crore which had inflated profits. we remain positive on the future prospectus of the company."

3. 01 PM: Market falls further

Domestic benchmarks Sensex and Nifty fell majorly on Wednesday, earsing yeaterday's gains on back of weak global equities. Sensex was trading 98 points lower at 38,400 and Nifty was falling 33 points lower at 11,267.

2.44 PM: IDBI Bank stock hits 5% upper circuit

Share price of IDBI Bank hit the upper circuit of 5% today after the lender reported a net profit of Rs 144.43 crore in Q1 against net loss of Rs 3,800.84 crore for April-June 2019-20.

In Q4 of last fiscal, net profit of the lender stood at Rs 135.39 crore. IDBI Bank share price opened with a gain of 4.97% at Rs 40.15 today and was locked in upper circuit in afternoon session. The share has gained 8.81% in the last 2 days.

IDBI Bank stock hits 5% upper circuit on strong Q1 earnings

2. 30 PM: Sectors update

On the sectoral front, trend was mixed today. Gains in metal, pharma and PSU Banks were capped by losses in IT, auto and financial stocks.

2.22 PM: Dr Reddy results

Dr Reddys Laboratories Limited's consolidated profit after tax for the quarter ended June 30 was down by 13 per cent to Rs 579.3 crore against Rs 662.8 crore during the same quarter in FY20, the company said in filing with stock exchanges on Wednesday.

Revenues for the quarter under discussion was up by 15per cent to Rs4,417.5 crore against Rs3,843.5 crore in Q1of last fiscal, it said.

2. 13 PM: Rupee ends stronger

On the currency front, Indian Rupee ended stronger at 74.79 per dollar as against the earlier closing of 74.83 per dollar.

1. 58 PM: Market Update

As per traders, globally, markets turned cautious ahead of the outcome of the FOMC 2-day meet, scheduled to end today

1. 49 PM: Tata Coffee shares gain over 16%

Shares of Tata Coffee gained over 16% on Wednesday's opening trade after the company reported healthy performance for the Q1FY21.The Tata Group company's consolidated net profit gained by 77% to Rs 62 crore in the April-June quarter, as against Rs 35 crore profit during the same quarter previous year.

Tata Coffee opened with a gain of 16.28% to an intraday high of Rs 96.8, rising 16.28% as against the last closing value of Rs 83.25 on BSE. The stock also touched an intrady low of Rs 91.40. Tata Coffee stock has risen 14.77% in the last 2 days of gain.

Tata Coffee share price climbs 16% on stellar Q1 earnings

1. 30 PM: Tech Mahindra Q1 update

Centrum BRoking in ita report said Tech Mahindra's 1QFY21 results were above our expectations on EBIT margin which helped in steep PAT beat.  Post steady 1QFY21, we raise Tech M's USD revenue growth.  Organic USD revenue decline for FY21 would be 6.5% and lower reported decline is owing to full impact of acquisitions. Post steady 1QFY21 margin execution, we raise EBIT margin assumptions to 10.9/11.9% for FY21/FY22E (vs 10/11.9% earlier). Margin upgrade leads us to raise EPS estimates by 17/5.5% for FY21/FY22E. We raise our target price by 19% to Rs 710/sh (14.5x June22E EPS vs 13x FY22E EPS). Retain Add.

1. 12PM: Market Update

Domestic investors will also keep an eye out about the outocme of PM Meet with Heads of Banks and NBFCs today

12. 58 PM: Real estate sector outlook

Speaking on outlook for real estate sector, Sahil Kapoor, National Head, 360 Edge, the franchise business of 360 realtors said, "Indian Real Estate has suffered from a muted demand in the past few years. Though the market was looking forward to a revival in sentiments, the COVID crisis resulted in further demand destruction. In the 1st three months following the lockdown, Real Estate demands have shrunk by up to 70% in major Indian markets. It will take some time for the normalcy to restore. At least 2 quarters from here. However, if the current economic woes stretch further, the pressure will mount with an elevated level of uncertainty.

In terms of demand, interest for products like farmhouse livings, 2nd homes, holiday homes will edge up due to the rise in WFH culture. Likewise, in major Indian metros, buyers will move towards peripheral areas with larger and more affordable housing units. There will be a newfound interest in income-generating small ticket size commercial units to hedge against possible uncertainties in the market. NRIs are expected to play a larger role in Indian Real Estate, due to dip in the value of rupee and global uncertainty."

12. 43 PM: IndusInd Bank gains 7%

Share price of IndusInd Bank gained 7% in early trade today after the lender reported a 64%  fall in Q1 net profit. Q1 earnings came above expectations as analysts at the ICICI Securities expected profit to fall 83.5 per cent year-on-year (YoY) to Rs 236.8 crore.

HDFC Securities saw the lender posting net profit at Rs 30 crore down 78.9% year-on-year in last quarter. Share price of IndusInd Bank rose 6.99% intraday to Rs 563.75 against previous close of Rs 526.90 on BSE. IndusInd Bank stock has gained 7.84%  in last two days.

IndusInd Bank share top Sensex, Nifty gainer despite 64% fall in Q1 net profit

12.30 PM: Brent crude declines

Oil price slipped on Wednesday as US lawmakers debated over coronavirus aid package and investors remained concerned over the rising coronavirus cases in the country. Brent crude futures, the global oil benchmark, rose 0.14 per cent to USD 43.28 per barrel.

12. 18 PM: Nifty outook

Geojit Financial in its note said," We had maintained upside hopes all along aiming for a modest target of 11275-11390. But the clean break of the consolidation band yesterday, encourages us to reconsider 11600 and beyond as possible upside objectives. However, the shooting star candlestick pattern formed in the closing hour, calls for avoiding fresh longs if early dips extend beyond 11259, and even consider turning short on break below 11225."

12. 02 PM: Nestle Q1 result update

Commenting on 1QFY21 results of Nestle India, Amarjeet Maurya, AVP - Mid Caps, Angel Broking said," For 2QCY20, Nestle India (NIL) has reported better than expected results both on the top-line and bottom-line front. Top-line grew by ~2% to Rs.3,050cr. Top-line was negatively impacted mainly due COVID-19 lockdown. On the operating front, the company reported margins improvement (up 75bps yoy at 24.5%) mainly due to lower other expenditure. On the bottom-line front, NIL reported growth of ~11% yoy to Rs.487cr due to healthy operating performance and lower taxes. Considering NIL's strong product portfolio coupled with strong brand and market leadership position, we are positive on stock."

11. 56 AM: RIL shares trade as top loser

Reliance's shares fell about 1.5% after eight days of consecutive gains, that pushed the company's market capitalization to more than 13 trillion rupees ($173.82 billion). The stock price of oil-to-telecoms conglomerate traded as the top losers today, falling over 2% to trade at the day's low fo Rs 2,130 on BSE today.

11. 48 AM: Top gainers and losers

Infosys, HCL Tech, Nestle India, M&M, Reliance Industries and Tech Mahindra were among the laggards today, while IndusInd Bank, followed by UltraTech Cement, Tata Steel, Sun Pharma, L&T and ICICI Bank were among gainers.

11. 32 AM: Gold price takes a breather after hitting all-time high

Gold price in Indian commodity markets eased on profit booking after hitting an all-time high of Rs 52,750 per 10 gm during the session, tracking weak trend from overseas amid rising concerns of uncertainties over the additional stimulus package in the US. 

However, rising coronavirus cases and ongoing tensions between the US and China helped the yellow metal stay in demand.

Gold price takes a breather after hitting all-time high, silver trades near record high

11. 20 AM: Indusind Bank result update

Commenting on Indusind Bank's 1QFY21 results, Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking," For Q1FY21, Moratorium loan book decline in line with peers now stands at 16%, Bank took total COVID led provision worth of Rs.1203cr, which is 0.6%. NPA sequentially decline from 0.91% to 0.86% due to an increase in the provision coverage ratio. Bank also announced that it will raise Rs3,288 crore through a preferential issue of shares to its promoter Hinduja group and other institutional investors. We expect capital raising will help the bank to improve capital adequacy ratio (CAR) and maintaining a higher CAR in uncertain times is positive. IndusInd bank trades at 1x BV of Q1FY21, which is much lower than the historical average. We believe the improvement in valuation will depend on RoE improvement."

11. 11 AM: Gold and silver outlook

Geojit Financial in its daily report said Gold is likely to correct prices lower to $1920 initially and later to $1880, if unable to move past $1980 intraday bias. However, an unexpected drop  below $1860 would negate the buying sentiments and take prices further lower. For MCX Gold futures, the brokergae expects resistance at 52,950 and support at 50,710.

For MCX Silver Aug futures, the brokergae expects resistance at 66600/74000 and support at 56400.

11. 01 AM: Coronavirus toll

In India, domestic investors coronavirus cases saw a record jump  came to 15.3 lakh by Wednesday morning, with total deaths standing at 0.34 lakh. Worldwide, there are 168 lakh confirmed cases and 6.63 lakh deaths from the coronavirus COVID-19 outbreak.

10. 54 AM: Rupee rises today

The Indian rupee gained 6 paise to trade at 74.78 against the American dollar in early deals on Wednesday tracking weakness in the greenback.  The local currency was trading in a narrow range at the interbank forex market, ahead of the outcome of US Federal Reserve's policy today.

Rupee opened at 74.83 against the US dollar on Wednesday and later gained further ground to touch 74.78 against the US dollar, up 6 paise over its last close of 74.84.

Rupee rises 6 paise to 74.78 per dollar ahead of FOMC meet outcome

10. 39 AM: Global markets

Asian markets were trading mixed on Wednesday, ahead of the FOMC outcome. Wall Street closed lower as investors focussed on coronavirus aid package talks, corporate earnings and FOMC rate decision later today. European markets closed higher on signs of progress in US stimulus efforts outweighing concerns regarding rising coronavirus cases.

10. 20 AM: Nifty outlook

Reliance Smart Money said in its daily note that,"NSE-NIFTY has given break out from its prior narrow range consolidation and regained 11,300 mark. Yesterday, the index rose to fresh four and half month high on back of buying across the board, especially in metal, IT and auto space. Its major technical indicators are in favour of bulls. We reiterate our positive stance on the index and do believe that current up-move will continue. This could lead the index towards 11,400 and 11,500 levels. On the lower side, the index will initially find support at around 11,000 mark and then at around 10,860 level, which coincides with its psychological support point and its, long-term moving average 200-day SMA, respectively.

As for the day, support is placed at around 11,195 and then at 11,090 levels, while resistance is observed at 11,362 and then at 11,423 levels."

10.10 AM: Upcoming IPOs in 2020

Initial public offer (IPO) market has picked up momentum after a gap of four months with Rossari Biotech shares making their bumper debut on BSE and NSE in July. In March, SBI Cards IPO saw a tepid response from investors amid market gloom caused by coronavirus crisis in the country. On the other hand, 2019 saw a huge number of companies taking the IPO route to raise capital. Top companies that hit the primary market with initial public offerings (IPOs) last year included IRCTC, CSB Bank, Ujjivan Small Finance Bank, Prince Pipes, IndiaMart, Neogen Chemicals, Rail Vikas Nigam, Sterling and Wilson Solar, and Affle India among others.

Here's a look at the top IPOs scheduled to hit the market in second half of this year.

10.02 AM: Stocks to watch today on July 29

IDBI Bank, YES Bank, Castrol, IndusInd Bank, Nestle, Bank of Baroda among others are the top stocks to watch out for in Wednesday's trading session.

Stocks in news: IDBI Bank, YES Bank, Castrol, IndusInd Bank, Nestle, Bank of Baroda

9. 52 AM: Goldman Sachs hikes 12-month gold price forecast to $2,300

Goldman Sachs on Tuesday raised its 12-month gold price forecast to $2,300 per troy ounce (toz), aided by expectations of more downside in U.S. real interest rates and a favourable environment for the safe-haven metal.

The surge in gold prices is being driven by a potential shift in the U.S. Fed towards an inflationary bias to account for political tensions and an expectations that coronavirus infections will rise, Goldman said.

Goldman Sachs hikes 12-month gold price forecast to $2,300

9. 40 AM: Spot gold declines on profit booking

Overseas, gold pulled back as much as 3.7% later in the session from an all-time high of $1,980.57 per ounce reached earlier. Gold is up over $125 per ounce in little more than a week.

Commodity traders said investors bet the Federal Reserve will reaffirm its super-accommodative policies at its two-day meeting ending on Wednesday and perhaps signal a tolerance for higher inflation in the long run. 

9. 36 AM: Market turns volatile

Sensex was trading 98 points lower at 38,400 and Nifty was falling 33 points lower at 11,267.

9. 20 AM: Market opens muted

Domestic benchmarks Sensex and Nifty recovered from earlier losses and turned green, although traded muted. Sensex was rising 58 points higher at 38,581 and Nifty was rising 22 points higher at 11,322.

9.05 AM: Market pre-opens lower

Sensex was trading 61 points lower at 38,431 and Nifty was falling 38 points lower at 11,274.

8. 55 AM: FOMC meet

Traders said markets will continue taking cues from the worldwide trend. As per market analysts, the US Fed meeting scheduled this week and key economic data announcements will be on investors' radar and market trend will depend upon commentary from the monetary policy meeting.

Ajit Mishra, VP - Research, Religare Broking said,"Going ahead, the FOMC meet outcome (on 29th July) would be one of the key events to watch out for. Besides, the key economic data points would provide more clarity on the recovery in the economy."

8. 50 AM: Global equities turn red

Global equities reversed the trend and fell today as an impasse in US economic revival package negotiations sent investors into safe-haven assets like gold, which hovered near record highs. US President Donald Trump on Tuesday said he did not support everything in a $1 trillion Senate Republican coronavirus relief proposal, but indicated that talks were continuing.

Meanwhile, SGX Nifty was rising 44 points higher at 11,328, indicating positive trend in domestic grounds today.

8. 45 AM: Technical indicators on Nifty

In the last few sessions, Nifty is consolidating in the range of 11250-11050. On the higher side, the index will face hurdles around 11,270 and 11,400 levels, where prior positive gaps are placed. However, in case of decline, support is placed at around 11,071 and then at 11,011 levels.

"We advise continuing with a positive yet cautious approach as Nifty is inching closer to the next hurdle at 10,350 levels," said Ajit Mishra.

8. 40 AM: Earnings today

Maruti Suzuki India, Bharti Airtel, Dr Reddy's Laboratories, TVS Motor Company, InterGlobe Aviation, Colgate-Palmolive, Ansal Housing, CEAT, GSK Pharmaceuticals, Mahindra Lifespace Developers, Manappuram Finance, Mastek, Navin Fluorine International, Omaxe, Rail Vikas Nigam, Sagar Cements, Snowman Logistics, among others will report Q1 FY21 earnings today.

8.35 AM: Rupee closing

Rupee, the local currency, ended unchanged at 74.83 per dollar yesterday

8. 30 AM: Last Closing

Sensex and Nifty ended on a bullish note on Tuesday, amid positive global equities and healthy buying interest seen in index heavyweights throughout the session. Bucking the trend from yesterday's losses, Sensex closed 588 points higher at 38,492 and Nifty was rising 168 points higher at 11,300.

Sensex gains 588 points, Nifty ends at 11,300; Five factors behind the rally

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