Sensex, Nifty Highlights on August 11: Sensex and Nifty ended on a bullish note on Tuesday, extending yesterday's gains tracking mixed cues from global markets. Sensex ended 244 points higher at 38,407 and Nifty closed 52 points higher at 11,322. Meanwhile, April-June quarterly earnings announcements by Bosch, Motherson Sumi Systems, Metropolis Healthcare, Central Bank of India, Bajaj Electricals, Honda India power products, RITES, Symphony will also set the tone for the stock market today. Yesterday, Sensex ended 141 points higher at 38,182 and Nifty gained 60 points to 11,274.
Here's a look at the updates of the market action on BSE and NSE today
3.57 PM: Closing session
Sensex and Nifty ended on a bullish note on Tuesday, extending yesterday's gains tracking mixed cues from global markets. Sensex ended 244 points higher at 38,407 and Nifty closed 52 points higher at 11,322.
3. 46 PM: Market quote
Commenting on today's trend, S Ranganathan, Head of Research at LKP Securities said,"With Russia becoming the first nation to approve the covid vaccine, the day begun strong but we witnessed a healthy round of profit booking in pharmaceuticals as well as select pivotals during afternoon trade. The sugar sector was indeed the star for the second consecutive day with exceptionally high volumes across key stocks despite profit booking at higher levels".
3. 37 PM: Market outlook
On markets' outlook today, Vinod Nair, Head of Research at Geojit Financial Services said,"Indian markets continued their positive run, in spite of intraday volatility and unabated virus infections across the country. It was in sync with positive global cues, on the back of expected stimulus measures from the US, improving economic data points from China and the first coronavirus vaccine getting registered in Russia. Indian markets continued their run on the basis of earnings results and stock specific news, amidst hopes of another round of stimulus measures by the government. This expectation should ensure liquidity in the markets in the near term."
3.24 PM: Shree Cements share price falls over 4%
Shree Cement share price fell over 4% on Thursday after the company declared 13.5% drop in consolidated net profit at Rs 330.35 crore for April-June quarter of FY21 as against a profit of Rs 382 crore in the same period last year.
Following the result update, Shree Cements share price fell 4.71% to the intraday low of Rs 21,335.4 on BSE against the earlier close of Rs 115.80. The stock also hit an intraday high of Rs 22,000 during today's session, also its opening value.
3. 18 PM: Emami result update
Commenting on Emami's Q1FY21 results, Centrum Broking said, " Company delivered a positive surprise led by gross/EBITDA margin expanding 231/487bps to 66.5%/25.5% despite lower sales (-25.8%) led by benign raw material prices and stringent cost control measures. The quarter saw a slew of new launches leveraging its Zandu and Boroplus brands contributing 5% to revenues in Q1 strengthening the health and hygiene portfolio. We continue to expect rerating in the stock led by (1) tailwinds for Zandu healthcare (2) renewed focus on driving growth through new product launches (3) efforts on cost savings by engaging AT Kearney and (4) benign input costs. Further, reduction of promoter pledge to zero by Mar'21 will address investor concerns in our view. We increase our estimates and retain buy rating with DCF-based revised target price of Rs310 (implying 23.7x FY22E EPS).
2. 40 PM: DCB Bank's earnings update
DCB Bank's earnings were mixed with NII missing estimates led by weak loan growth and softer NIM (due to excess liquidity) while treasury gains and lower opex. Provisions were slightly higher with COVID-19 related being Rs 0.32bn. Overall additional provisions (COVID-19 + standard asset + floating) are ~4% of the moratorium which reduced to 26% of loans as at July20 (vs 60% in Apr20). Resolution scheme announced may not be utilised for DCB customers except in case of corporate consortium loans. Tier-1 is healthy at ~14%. See RoA/RoE improve over FY21-22E by 32bps/3.5% to 1.1%/12.5%. Maintain multiple at 1.2x FY22ABV and TP at Rs 131. BUY
2. 22 PM: BSE, bullion trade associations join hands
Leading stock exchange BSE on Tuesday said it has joined hands with two bullion trade associations for deepening the commodity derivatives market in the country. BSE has signed a Memorandum of Understanding (MoU) with Akola Sarafa Association and Akola Sarafa Va Suvarnakar Yuva Sangh in this regard.
2.09 PM: Axis Bank share price gains 3%
Axis Bank share price rose 3 percent intraday after the private sector lender raised Rs 10,000 crore via Qualified Institutional Placement (QIP) issue. Share price of Axis Bank gained 2.99% to Rs 443.85 against previous close of Rs 430.95 on BSE. Axis Bank share price trades higher than 5, 20, 50 and 100-day but lower than 200 day moving averages.
1. 38 PM: Bank Nifty tenchical indicators
On Nifty Bank index, Angel Broking said,"The banking index has been consolidating within a range of 21000-22000 since last few sessions. A decisive breakout above the higher end could then lead to an upmove in the short term in this sector. Traders are advised to look for stock specific opportunities and trade with proper risk management. Above yesterday's high of 22070, intraday targets will be seen around 22200 and 22350. On the flipside, intraday supports are placed around 21770 and 21650."
1. 24 PM: Market Update
Sensex and Nifty traded on a bullish note on Tuesday, extending yesterday's gains tracking mixed cues from global markets. Sensex was rising 365 points higher at 38,547 and Nifty gained 90 points higher at 11,360.
1.03 PM: ICICI Bank shares rise over 2%
ICICI Bank shares touched an intraday high of Rs 374.15, rising 2.9% on BSE, following the QIP news. On Monday, ICICI Bank scrip closed at Rs 364.20 on BSE, up 1.75% from the previous close. The stock has risesn 2.03% in the last 2 days. ICICI Bank shares have risen 1.54% in the last one month period.
ICICI Bank stock price trades higher than 5, 20, 50 and 100-day but lower than 200-day moving averages. The Market-cap of the private lender stood at Rs 2,36,871.65 crore as of today's session.
12. 43 PM: Earnings today
April-June quarterly earnings announcements by Bosch, Motherson Sumi Systems, Metropolis Healthcare, Central Bank of India, Bajaj Electricals, Honda India power products, RITES, Symphony will also set the tone for the stock market today.
12. 39 PM: ICICI Bank's QIP floor price set at Rs 351.36
India's second largest private sector lender ICICI Bank has launched its Qualified Institutional Placement(QIP), setting the floor price at Rs 351.36 per equity share, under the SEBI formula.
The floor price for the qualified institutional placement of shares is at a discount of over 3% to Monday's close of Rs 363.60 on the BSE.
A decision on the final issue price and allotment will be taken on August 14. "A meeting of the issuance committee of Board of Directors of the Bank is scheduled to be held on Friday, August 14, 2020 to, inter alia, consider and determine the issue price for the equity shares to be allotted to qualified institutional buyers, pursuant to the Issue," ICICI bank said in a press release.
12. 24 PM: HDFC share gains nearly 3%
HDFC share price gained in early trade today after the mortgage lender raised Rs 3,693 crore by selling bonds. These papers offered 5.40 percent with three-year maturities. Rating company CRISIL assigned triple-A grade to theses debt securities. Share price of HDFC rose 2.66% to Rs 1,846 against previous close of Rs 1,798 on BSE. Total 0.53 lakh shares changed hands amounting to turnover of Rs 9.69 crore. Market cap of the firm stood at Rs 3.18 lakh crore.
12. 19 PM: Real estate sector outlook
Speaking on the outlook for real estate sector, Uddhav Poddar, MD, Bhumika Group and Co-Chairman, ASSOCHAM National Council on Ease of Doing Business and Economic Affairs said, " Just when we were seeing some green shoots, COVID hit us and it was a another serious blow to this already reeling sector. The sentiment turned very negative and the projects came to a standstill due to labour migration issues. Although the sentiment is not back to Pre Covid levels, but I'm happy to say that we see a lot of interest from potential property buyers who now undertand the importance of their own home or office. If the government could step in and provide some relaxation temporarily to this sector by reducing GST and stamp duty, it will really help in bringing this sector back on track."
12.06 PM: Titan share pricefalls 4%
Titan share price was the top loser on Sensex and Nifty in early trade today after the luxury goods firm reported a net loss of Rs 297 crore in June quarter, impacted by lower income due to the COVID-19 pandemic. The firm reported a net profit of Rs 364 crore in the corresponding period of the preceding fiscal.
Share price of Titan Company fell 4.05% or Rs 45 to Rs 1062 against previous close of Rs 1,107 on BSE.
11. 34 AM: Top gainers and losers
Axis Bank, followed by Tata Steel, ICICI Bank, HDFC, PowerGrid, Tech Mahindra and SBI were among the top gainers. On the other hand, Titan, Sun Pharma, Bharti Airtel and Reliance Industries were among the laggards.
11. 12 AM: Ruppe gains 8 paise
Indian rupee, the local unit appreciated 8 paise to 74.82 per dollar on Tuesday tracking weakness in the US currency, foreign fund inflows and gains in the domestic equity market.
The domestic currency benchmark opened at 74.83 per dollar, then touched 74.82, rising 8 paise over its previous close of 74.90 against the US currency.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.06 per cent to 93.52.
11.07 AM: Nifty technical
On Nifty's technical indicators, Angel Broking said," Nifty managed to close with precisely half a percent gains to reclaim the 11250 mark. Since the last couple of days, we have been advocating some caution, because Nifty has approached a strong resistance zone of 11300-11350 and although there is no sign of weakness yet, it will not be easy for the index to overcome this sturdy wall. Going ahead, if we sneak and sustain below 11238, this will result in some immediate decline towards 11175-11120-11064 levels."
10. 53 AM: ICICI Bank QIP update
Commenting on ICICI Bank- QIP , Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking said,"ICICI Bank Ltd on Monday launched a qualified institutional placement (QIP) offering to raise as much as Rs. 15,000cr at an indicative price of Rs.355-358/share.We believe this fundraising in this environment would be positive for ICICI bank. At base price Tier I to increase approx. 200bps, net worth to gain 12.6%, and Book value to increase by 5.8%. In uncertain times adequate capital adequacy (CAR) will provide comfort to investors. Currently, ICICI bank trades 1.1x FY22E ABV which is a lower valuation compared to the historical average. Lower valuation, increase in CAR and healthy performance by Insurance and AMC Business would be positive for ICICI Bank. Key to monitorable here on will be Moratorium percentage of the loan book at the end of Morat 2 in AUG 2020."
10. 46 AM: Gold eases for 2nd session
Gold price in Indian commodity market eased momentum for the second straight session and fell on Tuesday, in line with muted overseas markets as the demand for the yellow metal eased on profit booking.
Gold traders turned cautious, amid rising US-China tensions and correction in dollar, leading to profit booking in the safe-haven asset. The tension between the world's two economies escalated after banning transaction of Chinese apps in the US dampened the market sentiments for precious metals. In the latest flare-up in tensions, Beijing has slapped sanctions on US officials.
10. 32 AM: Bank of Baroda Q1 result
Commenting on Q1FY21 - Bank of Baroda, Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking said,"For Q1FY21, Bank of Baroda reported net profit comes in below street estimate; the bank reports a loss of Rs.846cr vs a profit in previous years the same quarter. Bank of Baroda is trading at low valuation compared to historical, however, here on investors will keenly watch for Morat number movement and RoE improvement trajectory."
10. 29 AM: Tech Mahindra's Q1 update
On Tech Mahindra's Q1 results, Geojit Financial Services said," Company's revenue grew 5.2% YoY to Rs. 9,106cr, while declined 4.0% on a QoQ basis. Also, no. of active clients stood at 981 in Q1FY21. While valuation looks expensive in the short-term, we remain bullish on TechM's long-term outlook, with strong growth seen in the enterprise segment and gradual recovery in the communication vertical. We retain our BUY rating on the stock with a target price of Rs. 779 on 15x FY22E adj."
10. 17 AM: Overseas gold
Spot gold was down 0.5% to $2,017.98 per ounce, moving further away from a record high of $2,072.50 hit last week, while US gold futures fell 0.6% to $2,028.10
Meanwhile, Comex gold was trading 0.49% lower at $ 2,014 per ounce, after hitting an all-time high of 2,063 in the previous week.
10.06 AM: Coronavirus toll
In India, coronavirus cases surpassed 22 lakh mark today, with total deaths standing at 0.45 lakh. Worldwide, there are 202 lakh confirmed cases and 7.38 lakh deaths from the coronavirus COVID-19 outbreak.
9. 46 AM: Nifty technical indicators
On market outlook, Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said, "After crossing the hurdle of 11250 we have moved swiftly to over 11350 upon opening itself. We should be able to achieve 11400 and then 11500 in this intermediate upward rally. The Nifty support continues to be at 11100."
9. 38 AM: Nifty outlook
Reliance Smart Money in its note said," NSE-NIFTY rose to 8-day high continuing its daily rising trend. As mentioned earlier, our bullish view will remain intact on the index, as its key technical indicator has remained in favour of bulls. However, near-term consolidation or a minor decline cannot be ruled out as the index has formed an indecisive pattern-Doji on the daily chart. A stable move above its near-term hurdle point (placed around 11,340 level) will be positive and that will strengthen the index for its next leg of up-move. That could lead the index towards 11,435 and 11,600 levels. 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 11,030 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."
9. 22 AM: Global cues
Global equities were trading higher today, although on a cautious note amid renewed tension between US and China after banning transaction of Chinese apps in US dampened the market sentiments. While the risk appetite was also muted as US lawmakers struggling to strike a stimulus deal ahead of crucial job numbers scheduled for today's session.
9. 15 AM: Opening session
Sensex and Nifty opened on a bullish note on Tuesday, extending yesterday's gains tracking mixed cues from global markets. SGX Nifty was rising 30 points higher, indicating positive trend in domestic grounds today. Sensex was rising 189 points higher at 38,371 and Nifty gained 52 points higher at 11,322.
9. 05 AM: Stocks in news
ICICI Bank, Vodafone Idea, HDFC, Titan, IndiGo, Bank of Baroda among others are the top stocks to watch out for in Tuesday's trading session.
8.55 AM: Global cues
Overseas, Asian stocks were trading lower on Tuesday on back of escalated US-China tensions, while Wall Street saw a mixed session yesterday as investors eyed stalled US stimulus efforts.
8. 50 AM: FII/ DII data
Foreign portfolio investors (FPIs) bought shares worth Rs 302.88 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 504.92 crore in the Indian equity market on 10 August, provisional data showed.
8. 45 AM: Cues from global stocks
Globally, markets in the Unites States and Europe were trading higher on Monday as investor sentiments were boosted by US President Donald Trump's decision to unilaterally extend joblessness benefits amid the coronavirus pandemic-led economic crisis.
8. 40 AM: Earnings Today
Bosch, Motherson Sumi Systems, Metropolis Healthcare, KRBL, Galaxy Surfactants, Bajaj Electricals, Symphony, Shriram City Union Finance, Chalet Hotels AIA Engineering, Central Bank of India and Oracle Financial Services Software are among companies which will announce their April- June quarter results on Tuesday.
8. 35 AM: Index of Industrial Production (IIP)
The central government is scheduled to release factory output or IIP growth data for June on August 11. In May, the country's industrial output declined by 34.7 per cent, albeit at a slower pace compared to April 2020, where the index had contracted by 57.6 per cent, as per data released by the Ministry of Statistics & Programme Implementation.
8. 30 AM: Closing
Key domestic equity benchmarks ended with decent gains after a volatile session on Monday. Sensex ended 141 points higher at 38,182 and Nifty gained 60 points to 11,274.
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