Sensex, Nifty Highlights on August 7: 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. The 30-share BSE benchmark Sensex ended 15 points higher at 38,040 and broader NSE Nifty closed 13 points higher at 11,214. Yesterday, the 30-share BSE benchmark Sensex ended 362 points higher at 38,025 and broader NSE Nifty advanced 98 points to 11,200. Meanwhile, April-June quarterly earnings announcements by M&M, Cipla, Siemens, Abbott, Aditya Birla Capital, Adani Transmission, Alkem Labs, Bata 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. 56 PM: Market outlook
Commenting on today's trade, Vinod Nair, Head of Research at Geojit Financial Services said" The unrelenting pace of virus infections and other uncertainties led to the benchmark indices ending flat today with volatile trades. Global cues were also mostly negative, after Asian markets ended in losses following US actions on popular Chinese apps, and anticipating retaliatory action from China.
However on a weekly basis, Indian benchmark indices ended up by around 1%, following gains in the latter half of this week, on expectations of RBI policy easing to support economic revival.
Expressing views on the week ahead, he 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."
3.44 PM: Market at close
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. The 30-share BSE benchmark Sensex ended 15 points higher at 38,040 and broader NSE Nifty closed 13 points higher at 11,214.
3. 32 PM: Strides pharma stock rating
On Srides Pharma Q1 results, Geojit Financial said,"Strides saw its Q1FY21 revenues grow by 14% on a YoY basis and 26% sequentially to Rs.782 cr on the back of revenue growth in the regulated markets. The U.S business grew by 8% YoY (Excluding ranitidine sales) led by successful new launches and growth in market share of existing products Strides plans to launch 10+ new products in the regulated markets during FY21. The company stated that the US$40 million investment in Stelis Biopharma made last year is expected to break-even by FY22. We reiterate a "Accumulate" rating on the Strides based on 13x FY22E EPS with a target price of Rs.621"
3. 21 PM: Market expert outlook
Commenting on markets closing today, Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said," We have not been successful in closing above the 11250 mark - this could be because the markets would like to take a fresh call on Monday. Until then the support remains at 11100. A trigger of 11250 could take us to 11400-11500 and a break of 11100 could drag us down to 10800."
3. 18 PM: Market update
In a volatile trading session, Sensex and Nifty were marginally rising by the last hour of session on Friday, amid weak global markets. Investors' sentiments were also tepid as domestic coronavirus cases surpassed the 2 million mark. The 30-share BSE benchmark Sensex was trading 6 points higher at 38,001 and broader NSE Nifty was trading 11 points higher at 11,211.
3. 10 PM: M&M Q1 result update
Commenting on 1QFY21 results of Mahindra & Mahindra, Rajit Rajoriya, Equity Research Associate, Angel Broking said,"Vehicle sales numbers were down 78% in Q1FY21, However tractor sales number fell by 22%. Company took a major hit due to the pandemic situation with complete washout in April month in all categories except tractors. Low pipeline inventory coupled with the challenges of ramping up production due to supply chain issues affected the Company's sales. However, strong demand from the farm equipment category helped in a major way. Tractor demand is likely to remain buoyant in coming quarters but the Utility vehicles category is showing no good sign of demand revival."
2. 36 PM: Quote on Mindtree listing
Commenting on Mindspace REITS IPO listing, Sharad Mittal, CEO, Motilal Oswal Real Estate Fund, said,"The listing of the Mindspace REIT at ~11% premium shows that a balanced product like REIT is preferred by both institutional and retail investors. Despite the recent weakened sentiment around commercial real estate, a diversified portfolio of grade A assets with strong rental collections as demonstrated by the Mindspace REIT finds flavor with the retail investor. This listing will augur well for future investments in asset backed financial products and commercial real estate in India."
2. 21PM: Quote on Mindtree listing
Commenting on Mindspace REITS IPO listing, Shishir Baijal, Chairman & Managing Director, Knight Frank India said," This is a great sign for the future of commercial real estate in India as it shows market and investor confidence for the long term. REITs will allow greater participation from retail investors in the asset class. The commercial office space segment has been growing from strength to strength over the past few years with sustained growth in rentals across prime business districts. We expect this momentum to regain in the near future which would encourage more participants to enter the REITs market and improve the fund flow into the sector."
2. 14 PM: Mindspace Business Parks REIT lists over 10% premium
Mindspace Business Parks REIT shares listed on the bourses at Rs 302 per share on Friday, registering a 10.55% premium over its issue price of Rs 275.
The company, backed by the Blackstone Group and real estate developer K Raheja, saw a robust response to its Rs 4,500-crore initial public offering (IPO), with the issue getting oversubscribed nearly 13 times.
The issue received bids for 8,778 lakh shares against the total issue size of 677 lakh shares.
1. 56 PM: Lupin share price drops 6.5%
Lupin share price fell in trade today after the pharma firm reported a 64.72 percent fall in its consolidated net profit for quarter ended June 2020. Lupin stock declined 6.55% to Rs 874.9 against previous close of Rs 936.25 on BSE.
At 2: 09 pm, the share was trading 5.20% or Rs 48.70 lower at Rs 887.55.
1. 47 PM: Quote on Mindtree listing
Expressing views on "Mindspace Business Park REIT listing, Yash Gupta , Equity Research Associate, Angel Broking said,"We had recommended a SUBSCRIBE to Mindspace REIT. Post listing as the stock is trading ~10% above the issue price, traders and short term investors can look to book profits at current levels and lock in the listing gains."
From a long term perspective, he added,"It is one of the good assets class to be invested for similar or better post tax yield as compared to fixed Income with good opportunity for capital appreciation. However given the increasing trend of work from home there are some concerns about the company and the commercial real estate segment in the short to medium term as absorption may remain low in the near future."
1. 38 PM: Gujarat State Petronet Q1 update
Commenting on 1QFY21 results of Gujarat State Petronet, Yash Gupta, Equity Research Associate, Angel Broking said," Drop in PAT was lower at 3.3% yoy to Rs 199.35 Crore as change in tax rate from 34.1% to 26.9% helped boost PAT. Demand from Power and Refinery/Petchem has strong traction and this is expected to continue till imported LNG prices recover to precovid levels which could be some time away given the glut in the global gas market."
1. 22 PM: HPCL Q1 update
Commenting on 1QFY21 results of HPCL, Jyoti Roy, DVP- Equity Strategist, Angel Broking said," Sales were adversely impacted in the month of April and May due to the lockdowns though they have improved substantially by June. While the revenue for the quarter came in below street expectations EBIDTA and profits were above expectations driven by inventory gains and better than expected performance by the marketing division. We believe that there will be a durable improvement in demand only in the second half of FY21 while GRM's will remain subdued in the near future."
1. 12 PM: Torrent Power Q1 update
Commenting on 1QFY21 results of Torrent Power, Yash Gupta, Equity Research Associate, Angel Broking said," Torrent Power consolidated revenue from operations for Q1FY21 stood at Rs 3,007 crore down by 20% YoY from Rs 3736 crore in Q1FY20. EBIT for the quarter stood at Rs 1,004 Crore up by 13% as compared to Rs 888 Crore in Q1FY20 as power purchase cost has come down significantly due to lower imported LNG prices.Profit after tax for the quarter stood at Rs 368 Crore up by 35% as compared to Rs 274 Crore in Q1FY20. Lower imported LNG prices are favorable to torrent, we expect LNG prices to recover in medium term."
12. 54 PM: Reliance Industries stock trading flat
Share price of Reliance Industries (RIL) was trading flat in afternoon session today after brokerage UBS downgraded the stock to neutral from buy. The large cap share is 3.01% away from all time high of Rs 2198.7. Reliance Industries share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages .RIL share fell 0.05% to Rs 2134 against previous close of Rs 2,134 on BSE.
12. 34 PM: Top losers and gainers
HCL Tech, followed by HDFC twins, Infosys, Sun Pharma, ICICI Bank and Kotak Bank were among the top losers on Sensex today, while Asian Paints, UltraTech Cement, Bajaj Finserv, IndusInd Bank and TCS were among the gainers.
12.22 PM: Rupee edges 4 paise lower to 74.98 per sollar
Indian rupee, the local currency traded tad lower on Friday at 74.98 per dollar, down 4 paise, on back of weak domestic equities and emergence of demand for the US currency from banks and importers.
The domestic unit opened on a weak note at the foreign bank exchange to touch a low of 75.04 before staging a quick mild recovery.
11. 52 AM: M&M trades higher ahead of results
Mahindra & Mahindra (M&M) share price was trading higher ahead of the Q1 earnings set to be announced today. The Anand-Mahindra led firm's earnings performance will be affected by coronavirus-induced lockdown which brought economic activity to a halt from March-end till June this year.Share price of M&M was trading 0.64% higher at Rs 613.45 against previous close of Rs 609.55 on BSE.M&M net profit may fall 80%, share trading flat ahead of Q1 earnings
11. 32 AM: State Bank of India Q1 update
Commenting on SBI's Q1 results, Geojit Financial in its note said, "Backed by a well-diversified loan portfolio and strong balance sheet with lower exposure to high risk sectors, we believe that the bank's valuation remains attractive. Hence, we reiterate our BUY rating on the stock with a revised target price of Rs. 246."
11.19 AM: Gold outlook
On Gold's outlook, Geojit Financial added," Outlook continue to be on the bullish side and it may look towards $2080/2145 levels as long as it stays above the key level of $2000. How-ever, an unexpected turn below $1920 could negate the extreme bullish outlook and may see corrective selling pressure. For MCX Gold Oct Futures, the brokerage said resistance is estimated at 57,110 and support is expected at 54,360
For MCX Silver Aug futures, resistance is placed at 78400/89000, while the support is at 71,500.
11.00 AM: Nifty outlook
On Nifty's technical indicators, Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking said,"Technically speaking, the benchmark is still trapped in a range and till the time we do not see a decisive breakout outside the range of 11350-10880, we are likely to see such wild swings in-between. Before this, immediate resistance is at 11260 and the supports are placed at 11127-11064."
10.52 AM: Vodafone Idea Q1 update
Expressing views on 1QFY21 results of Vodafone Idea, Keshav Lahoti, Associate Equity Analyst, Angel Broking said," Vodafone Idea revenue missed street expectation but EBIDTA was above street expectation due to improved margins. Vodafone Idea's ability to continue as a going concern is highly dependent on a positive outcome on AGR matter before the Supreme Court for the payment in installments. Considering the fact that Vodafone Idea continues to lose market share, net worth is negative and is also making losses at PAT level, we advise investors to avoid Vodafone Idea. Bharti Airtel is our preferred pick in the telecom space."
10. 45 AM: Lupin USFDA approval quote
Commenting on the announcement of US FDA approval received by Lupin, Yash Gupta, Equity Research Associate, Angel Broking said,"Lupin Ltd got approval from the U.S. FDA for Mycophenolate Mofetil Tablets USP, 500 mg, in alliance with Concord Biotech Limited, to market a generic version of CellCept Tablets of Roche Palo Alto LLC (Roche). Mycophenolate Mofetil Tablets are indicated for the prophylaxis of organ rejection in recipients of allogeneic kidney, heart or liver transplants, in combination with other immunosuppressants. CellCept of Roche Palo Alto LLC had an annual sales of approximately USD 96 million in the U.S. (IQVIA MAT Mar 2020). This is one of the significant approvals for Lupin."
10. 32 AM: Weak global cues
Halt on fiscal aid negotiations in Washington coupled with pending US job data today as kept equities cautious today. Projections of slower economic recovery from the virus impact by Bank of England also weighed the sentiments.
10. 20 AM: Silver crosses Rs 77K
Silver September futures was trading Rs 298 higher at Rs 76,350 per kg today, after hitting a lifetime high of Rs 77,949 earlier in today's session.
10. 12 AM: Gold surpasses Rs 56K
After 6 consecutive bullish sessions, Gold futures on Multi Commodity Exchange were trading Rs 15 lower at Rs 55,830 per 10 gm against the previous close of Rs 55,845 per 10 gm. Earlier today, Gold August Futures touched an intraday as well as an all-time high of Rs 56,191 today.
10.05 AM: Market update
Sensex and Nifty traded muted on Friday, led by bank stocks, as domestic coronavirus cases neared the 2 million mark, amid weak global markets. The 30-share BSE benchmark Sensex dropped 20 points lower at 38,004 and broader NSE Nifty was trading 7 points higher at 11,207.
9. 58 AM: Coronavirus toll
In India, coronavirus cases surpassed 20 lakh mark today, with total deaths standing at 0.41 lakh. Worldwide, there are 189 lakh confirmed cases and 7.17 lakh deaths from the coronavirus COVID-19 outbreak.
9. 40 AM: Brent Crude trades flat
Oil prices were little changed, with Brent futures down 0.1% at $45.04 per barrel.
9. 34 AM: Overseas gold
Spot gold hit a record high of $2,075.2 per ounce today and last stood at $2,064. Silver has been ballistic in recent weeks and hit a seven-year high of $29.8384 per ounce, having gained 60% so far this quarter.
9. 21 AM: Nifty outlook
"The short term trend of Nifty continues to be positive with volatile movement. Some more upside is left in the market and Nifty is expected to reach the upper resistance area of 11,350 by next week. Immediate support is placed at 11,100. The stoploss for positional long trades needs to be placed at 10,900 levels," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
9.12 AM: Opening session
Sensex and Nifty opened on a bearish note on Friday, amid weak global equities. The 30-share BSE benchmark Sensex dropped 74 points lower at 37,951 and broader NSE Nifty was trading 13 points lower at 11,186.
9. 05 AM: Rupee outlook
On Rupee's near term outlook, Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking said," Despite the pause, rupee still remains in a sticky range of 74.50-75.50, and the domestic currency will be guided more by the movement in the dollar index, which is languishing at two- year lows and the pace at which the RBI will look to accumulate its forex reserves. Expectations of dollar inflows are capping upside for the pair (USD/INR), while the downside is being protected by the RBI."
8.57 AM: Earnings Today
Mahindra & Mahindra, Cipla, Siemens, Abbott India, Aditya Birla Capital, Adani Transmission, Alkem Laboratories, Bata India, Alphageo (India), Amara Raja Batteries, Amber Enterprises India, Andhra Paper, Automotive Axles, Balrampur Chini Mills, BEML, Birla Corporation, Container Corporation of India, Emami, Entertainment Network India (ENIL), FDC, Finolex Industries, Indo Rama Synthetics, Kajaria Ceramics, Mahanagar Gas, Nucleus Software Exports, Punjab & Sind Bank, REC, Shipping Corporation of India, Sobha, Sudarshan Chemical among others will report April-June quarter earnings today.
8. 50 AM: Weak global cues
Global equities were trading lower today. Asian stocks fell as investors turned cautious awaiting several economic data releases for July and signs of growing China-US tensions that were evident after Trump took aim at China's tech firms. Shares on Wall Street managed to close higher on Thursday, as investors were buoyed on hopes of a new fiscal stimulus package
8. 45 AM: Nifty outlook
NSE-NIFTY extended gain after a flat close on back of strength in the metal, FMCG and IT space. The index regained 11,200 mark after five trading sessions. Due to further rise in the index, its key technical indicator has turned in favour of bulls. This could lead the index towards 11,340 level, which coincides with its upper band of the narrow range. 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 10,980 and 10,600 levels, respectively.
As for the day, support is placed at around 11,133 and then at 11,065 levels, while resistance is observed at 11,262 and then at 11,324 levels.
8. 40 AM: Indian Rupee
On the currency front, Indian Rupee ended almost unchanged compared to yesterday's close at 74.93 per dollar.
8. 35 AM: Stocks to watch today on August 7
Vodafone, Yes Bank, HPCL, Jubilant FoodWorks, JK Tyre among others are the top stocks to watch out for in Friday's trading session.
8. 30 AM: Closing
Yesterday, the 30-share BSE benchmark Sensex ended 362 points higher at 38,025 and broader NSE Nifty advanced 98 points to 11,200.
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