Sensex, Nifty Snap Three-Day Losing Streak Aided By FMCG, Banking Stocks

India's stock benchmarks swung between gains and losses during the first half, but consolidated gains in the second, to close near day's high. The Sensex and Nifty snapped three-day losing streak, aided by gains in FMCG and banking stocks while metals declined.

The Sensex rose 0.62% to 53,234,77. The Sensex shed over 230 points to an intraday low of 52,674,81 before reversing gains in a late flourish. The Nifty 50 also gained 0.5% to 15,835.35. Today 36 of the Nifty 50 stocks rose while 14 fell.

The MidCap index outperformed its larger peers, rising 0.8% while SmallCap measure almost mirrored Sensex and Nifty. Twelve of the 19 sectoral indices compiled by BSE advanced, with FMCG index rising 2.5%. On the flipside, the Metal gauge lost 1.5%.

The market breadth was skewed in the favour of bulls. About 2,022 stocks rose, 1,366 fell and 178 remained unchanged.

• The Indian currency appreciated 0.21% (17 paise) to 78.87 against the U.S. dollar during the session.

• Rupee trimmed gains to close at 78.95, snapped a six day losing streak since June 23.

Source: Bloomberg

• Yield on the 10-year bond fell 7bps to 7.35%, during the session.

• The 10-year bond yield closed at 7.37%, a five-week closing low.

• The 10-year bond yield has eased 24bps off three-year high of 7.62% in over two weeks since June 16.

Source: Bloomberg

• Rupee rises 17 paise (0.21%) to 78.87, during the session.

Source: Bloomberg

Tata Power signs MoU with Tamil Nadu government to set up a greenfield 4 Gigawatt solar cell and 4 Gigawatt solar module manufacturing plant, for an investment of Rs 3,000 crore.

• The investment in the plant will be made over 16 months, the company said in an exchange filing.

• The manufacturing facility to be built in Tirunelveli, will be the second manufacturing unit of Tata Power after Bengaluru plant.

• The Tamil Nadu plant will produce high wattage modules and utilise smart manufacturing tools.

• Shares of Tata Power rose 2% in intraday trade. The stock is trading with 1.5% gains as of 2:45 p.m.

Source: Exchange filing, Bloomberg

Shares of Mahindra & Mahindra Financial Services rose over 2%, before erasing the gains.

• The company delivered 115% YoY and 27% growth in disbursements to Rs 3,750 crore in June.

• Year-To-Date disbursement stood at Rs 9,450 crore, up 145% YoY.

• The company's gross business assets, as on June 30, rose 6% YoY to Rs 67,500 crore.

• Collection efficiency in the month of June was at 96% compared to 90% in June 2021.

• Stage 2 assets have been improvement over March 31, 2022 level. The company estimates Stage 3 assets as on June 30 to be marginal higher than on March 31, 2022.

• Kotak Institutional Equities said that the company is on strong footing and retained 'add' with a target price of Rs 210 after it hosted the company's senior management.

Of the 31 analysts tracking the company, 17 maintain 'buy', 10 suggest 'hold' and four recommend 'sell'. The return potential of the stock is at 10%.

Source: Exchange filing, Kotak Institutional Equities note, Bloomberg

• European markets open higher. Oil & gas stocks gain while technology stocks decline.

Source: Bloomberg

Shares of VA Tech Wabag rose nearly 4.5% after the pure-play water technology firm bagged an order worth Rs 430 crore from Reliance Industries.

• The order pertains to engineering, procurement and construction of 53 MLD desalination plant at Jamnagar, Gujarat.

• The scope of the order includes design, engineering, procurement, supply, construction, commissioning and performance guarantee test run of sea water reverse osmosis plant.

• VA Tech Wabag has already executed a 24 MLD sea water reverse osmosis plant in the same premises at Jamnagar plant. The plant is to be completed in 21 months.

• All four analysts tracking the company maintain 'buy'. The return potential of the stock is 68.1%.

Source: Exchange filing, Bloomberg

Shares of Automotive Axles gained nearly 9% following 8.84% rise on Friday.

• The rise comes after Ashok Leyland reported 6% MoM and 125% YoY growth in sales for the month of June, on Friday.

• Axle assemblies and auto parts maker Automotive Axles gets more than 60% of its sales from Ashok Leyland.

• Trading volume is more than seven times the 30-day average. The relative strength index is at 71, suggesting that the stock may be overbought.

Source: Bloomberg

Shares of Angel One jumped over 5.25%, the most in a week, after the company shared its business update for the month of June before market hours on Monday.

• Client base grew 3.1% MoM (96.9% YoY) to 10.41 million.

• Average client funding book at Rs 1,631 crore in June, down 13.4% MoM and up 19.8% YoY.

• Overall average daily turnover at Rs 9,76,500 crore, up 9.2% MoM and 118.5% YoY.

• Overall retail turnover market share at 21.2% Vs 19.9% MoM and 21.9% YoY.

Trading volume is nearly 1.5 times the 30-day average. Of the five analysts tracking the company, four maintain 'buy' and one suggests 'hold'. The return potential of the stock is 46.4%.

Source: Exchange filing, Bloomberg

Shares of Hindustan Aeronautics rose over 3.5%, the most in nearly two weeks.

• The rise comes after PTI reported on Sunday that India's Tejas Light Combat Aircraft emerged as the top choice for Malaysia as the country looks to replace its fighter jets' fleet.

• The two sides are holding negotiations to firm up procurement.

• The LCA Tejas is developed and made in India by HAL.

• Trading volume is nearly half the 30-day average. All six analysts tracking the company maintain 'buy'. The return potential of the stock is 21.3%.

Source: PTI, Bloomberg

India's stock benchmarks swung between gains and losses in a volatile session so far, as gains in fmcg and power were offset by losses in metal, energy and oil and gas shares.

The Sensex rose 100 points (0.20%) to 53,012.53. The 30-stock gauge oscillated in a narrow 400-point band between 52,674.81 and 53,067.49 in the session. The Nifty 50 was little changed at 15,760.95. About 22 of Nifty 50 stocks rose, 28 fell.

The Midcap index almost mirrored its larger peers, while the SmallCap measure outperformed, rising nearly 0.5%. Eleven of the 19 sectoral indices compiled by BSE advanced with FMCG index rising 1%. On the flipside, the Metal index lost nearly 2.5%.

The market breadth is skewed in the favour of bulls. About 1,915 stocks rose, 1,260 declined and 191 remained unchanged.

Shares of Deepak Nitrite rose 3%, the most in nine sessions.

• The company carried our restoration steps and submitted stability certificates to government with respect to fire incident at Nandeswari plant. Gujarat Pollution Control Board has issued directions revoking the closure order and allowed the company to operate a part of the plant, 50% of consented capacity of Nitro section, the company said in an exchange filing over the weekend.

• Trading volume is nearly 1.5 times the 30-day average. Of the 16 analysts tracking the company, nine maintain 'buy', four suggest 'hold' and three recommend 'sell'. The return potential of the stock is 37.8%.

Source: Exchange filing, Bloomberg

Shares of Dilip Buildcon rose nearly 8.5%, the most in five weeks, as it recovered from 52-week low logged on Friday.

• The rise comes after the company emerged as L-1 bidder for a tender by Gujarat Metro Rail Corp. pertaining to the construction of 8,702 kms elevated viaduct and seven stations under Surat Metro Rail Project Phase-1.

• The project cost is Rs 702.02 crore and is to be completed within 26 months.

• Trading volume is nearly eight times the 30-day average. Of the eight analysts tracking the company, four maintain 'buy', two suggest 'hold' and two recommend 'sell'. The return potential of the stock is 53.9%.

Source: Exchange filing, Bloomberg

Shares of ONGC, Oil India extended fall after the government's decision to impose additional excise duty on crude oil production.

• PTI reported on Saturday that tax on ONGC, Oil India and Vedanta alone will fetch the government Rs 69,000 crore annually considering 29.7 million tonnes of oil production in FY2022, citing two people with knowledge of calculations.

• The report added that the levy would fetch government Rs 52,000 crore if the tax remains in place till March 31, 2023. RIL is expected to continue overseas shipments from only-for-exports oil refinery at Jamnagar, even with the new tax, PTI quoted an unidentified person.

• Today, Reuters quoted Revenue Secretary Tarun Bajaj saying that the windfall tax will be dropped if oil falls by $40 per barrel.

• Shares of RIL, MRPL, Chennai Petroleum, Hindustan Oil Exploration fell in today's session.

Source: PTI, Reuters, Bloomberg

• Yield on the 10-year bond fell 7bps to 7.35%, lowest in over five weeks since May 28.

Source: Bloomberg

Shares of IDFC First Bank gained over 5.5%, most in over a week.

• The company's Q1FY23 Business Update showed that advances grew 6.7% QoQ & 21% YoY to Rs 1,37,685 crore. Retail business represented 65.7% of the overall funded assets as of June 30, 2022 and Commercial business (CV, Business Banking etc.) constituted 7.8% of the total funded assets. Mortgage business including home loans grew by 32% on a Y-o-Y basis and constituted 37.5% of the retail book. Deposits grew by 9.8% QoQ & 21% YoY and CASA improved to 50.3% vs QoQ 48.4%.

• Trading volume is more than thrice the 30-day average. Of the 13 analysts tracking the company, five suggest 'buy', three recommend 'hold' and five remain 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 37.1%.

Source: Exchange filing, Bloomberg

Shares of National Fertilizers rose over 5.3%, the most in nearly two weeks.

• The total fertilizer sale rose 47% YoY in April-June 2022. The company reported total sale of 15.56 lakh MT (a record) compared to 10.62 lakh MT in the corresponding period of last year.

• Trading volume is more than twice the 30-day average

Source: Exchange filing, Bloomberg

Shares of ONGC fell over 5% in intraday trade. This follows the 13.5% decline on Friday after the government announced new additional excise taxes on crude oil and petroleum products effective July 1.

• The government notified taxes of Rs 23,250 per tonne on domestic crude oil and Rs 6 per liter on exports of gasoline and ATF and Rs 13 per liter on exports of diesel. The government will review these taxes on a fortnightly basis.

• Kotak Institutional Equities and JP Morgan downgraded the stock to 'sell' and 'neutral', respectively following the announce while Haitong, Motilal Oswal, Nomura (neutral), HSBC, Morgan Stanley and Goldman reiterated their recommendations.

• Kotak Institutional Equities termed the decision 'irrational' and expected the net realisation to fall for ONGC and Oil India and downgraded the stocks to 'sell'. It also added that the decision to impose taxes on exports of petroleum products goes against the historic policy of incentivising refining. The brokerage expected the decision to be reversed or likely be challenged in a court of law.

• Of the 29 analysts tracking the company, 22 maintain 'buy', three suggest 'hold' and four recommend 'sell'. The return potential of the stock is 51.7%.

• Trading volume is more than quadruple the 30-day average.

Source: Gazette notification, Brokerage notes, Bloomberg

HDFC Bank's advances rose to Rs 13,95,000 crore in Q1, up 21.5% YoY and 1.9% QoQ.

• Advances rose by 22.5% YoY and 2.8% QoQ.

• Retail loans rose by 21.5% YoY while commercial and rural banking loans gained 29% YoY.

• Deposits rose 19.3% YoY to Rs 16,05,000 crore.

• CASA deposits aggregated to Rs 7,34,500 crore, up 20.1% YoY.

• CASA ratio stood at 46% Vs 45.5% YoY.

• HDFC Bank purchased loans aggregating to Rs 9,533 crore through direct assignment route under the home loan arrangement of HDFC.

Source: Exchange filing

Shares of InterGlobe Aviation fell over 3.8%, the most in two weeks.

• The decline comes after Press Trust of India reported that 55% of IndiGo's domestic flights were delayed on Saturday. The report added that a significant number of cabin crew members took sick leave to attend an Air India recruitment drive. DGCA is probing into the matter. Phase-2 of Air India's recruitment drive was conducted on Saturday.

• Trading volume is more than twice the 30-day average. Of the 25 analysts tracking the company, 15 maintain 'buy', four suggest 'hold' and six recommend 'sell'. The return potential of the stock is 28.5%.

Source: PTI, Bloomberg

Shares of Avenue Supermarts Ltd. rose over 4.9%, the most in over four weeks to Rs 3,555 apiece.

• The company reported Q1FY23 standalone sales of Rs 9,806.89cr Vs YoY Rs 5,031.75cr (+95%)/QoQ Rs.8606cr (+14%), on Saturday.

• As Q1 of FY21 and Q1 of FY22 both were disrupted due to Covid, comparing it with Q1FY20 the sales has grown at 19.2% CAGR in last 3 years in Q1FY23.

• Trading volume in nearly nine times the 30-day average.

• Of the 26 analysts tracking the company, 17 maintain 'buy', two suggest 'hold' and seven recommend 'sell'. The return potential of the stock is 3.9%. Over the weekend, Morgan Stanley reiterated 'overweight/attractive' on the stock with the target price unchanged at Rs 4,332 (an implied return of 27.83%). Axis Research retained 'add' with the target price unchanged at Rs 3,600, an implied upside of 6.23%.

Source: Exchange filing, Bloomberg

India's stock benchmarks opened lower, but soon swung to losses, as losses in metal, energy, oil and gas stocks were offset by gains in power, banking, fmcg stocks.

The S&P BSE Sensex was little changed at 52,888.36. The NSE Nifty 50 fell 0.2% to 15,714.15.

The broader indices outperformed their larger peers, with both the S&P BSE SmallCap and MidCap indices rising 0.4%. Ten of the 19 sectoral indices compiled by BSE Ltd. rose, with Power and Utilities measures rising rising nearly 1%. On the flipside, the Metal index lost nearly 2%.

The market breadth is skewed in the favour of bulls. About 1,592 stocks rose, 722 fell and 148 remained unchanged.

• Yield on the 10-year bond fell 4bps to 7.38%, at the open.

Source: Bloomberg

• Indian currency rose 0.16% (12 paise) to 78.92, at the open.

• The Rupee slumped a record low 79.12, on Friday.

Source: Bloomberg

Shares of Interglobe Aviation, SpiceJet, Jet Airways are in focus after PTI reported that 55% of IndiGo's domestic flights were delayed on Saturday.

• PTI said that significant number of cabin crew members took sick leave to attend an Air India recruitment drive.

• DGCA is probing into the matter.

• Phase-2 of Air India's recruitment drive was conducted on Saturday.

Source: PTI, Bloomberg

A group of Mumbai-based high net worth investors complained to SEBI that Zomato did not make disclosures in time about the purchase of Blinkit to exchanges, reports The Economic Times, citing people with direct knowledge of the matter.

• Investors said in a June 29 letter to SEBI that they suffered losses due to delay in disclosures.

• News about the potential acquisition had been reported in press and doing the rounds on social media a month before the deal was announced.

• Zomato informed exchanges of the approval to acquire Blinkit for Rs 4,447 crore on June 24.

• Economic Times could not ascertain the identity of investors and their holdings in Zomato. SEBI has not responded to ET's queries.

Source: The Economic Times

• Total Deposits up 48%/4% YoY/QoQ to Rs 54,631 crore

• CASA Ratio at 39% Vs 26% YoY and 37% QoQ

• Average cost of funds at 5.7% Vs 6.3% YoY and 5.7% QoQ

• Loan AUM up 37%/5% YoY/QoQ to Rs 50,179 crore

• Gross advances up 42%/6% YoY/QoQ to Rs 49,366 crore

Source: Exchange filing

Haitong India on Federal Bank

• Reiterates 'outperform' and maintains target price at Rs 123 apiece.

• Sees improvement in growth momentum from Q1 business update.

• Gross loans grew 16.3%/4.6% YoY/QoQ compared to 9.5%/2.8% in March quarter.

• Retail loans grew 16.7% YoY Vs 10.4% YoY in Q4FY2021-22.

• Retail of wholesale book ratio remained similar to FY2022 numbers

• Retail customers deposits growth of 10% YoY is one of the best in the industry.

Haitong India on IndusInd Bank

• Retains 'outperform' with the target price kept unchanged at Rs 1,232.

• Loan growth has gradually improved over the last five quarters.

• Net loans grew 18.4% YoY in Q1, to Rs 2.49 lakh crore, the highest in 10 quarters.

• Deposits rose 13.3% YoY to Rs 3.03 lakh crore, aided by CASA growth of 16.2% YoY.

• CASA ratio is at the highest in 14 quarters.

• HDFC Bank, HDFC: Stock exchanges give nod for HDFC Bank-HDFC merger. Observation letters of ‘no adverse observations’ from BSE and ‘no objection’ from NSE for HDFC Bank - HDFC merger.

• HDFC: The company’s profit on sale of investment on account of the Corporation’s 10% stake sale in HDFC Capital Advisors during quarter ended June 30 was Rs 184 crore. Gross income from dividend for the quarter was Rs 687 crore. Pursuant to the buyback option embedded in the home loan arrangement between the company and HDFC Bank, the company assigned loans to HDFC Bank amounting to Rs 9,533 crore.

• CSB Bank: The company's Q1FY23 Business Update showed that advances grew 2.1% QoQ (15% YoY) to Rs 16,333 crore. Gold advances grew 8.2% QoQ to Rs 7,099 crore. Non-gold advances fell 2.1% QoQ to Rs 9,233 crore. Deposits rose 0.4% QoQ while CASA improved to 35.1% from 33.7% QoQ.

• IDFC First Bank: The company's Q1FY23 Business Update showed that advances grew 6.7% QoQ & 21% YoY to Rs 1,37,685 Cr. Retail business represents 65.7% of the overall funded assets as of June 30, 2022 and Commercial business (CV, Business Banking etc.) constitutes 7.8% of the total funded assets. Mortgage business including home loans grew by 32% on a Y-o-Y basis and constituted 37.5% of the retail book. Deposits grew by 9.8% QoQ & 21% YoY and CASA improved to 50.3% vs QoQ 48.4%.

• Avenue Supermarts (Dmart): The company reported Q1FY23 standalone sales of Rs 9,806.89cr Vs YoY Rs 5,031.75cr (+95%) QoQ Rs.8606cr (+14%). As Q1 of FY21 and Q1 of FY22 both were disrupted due to Covid, comparing it with Q1FY20 the sales has grown at 19.2% CAGR in last 3 year in Q1FY23. Share is trading at PE of 68 FY24 EPS.

• Karnataka Bank: The company reported YoY Advances growth of 12.59% in Q1FY23.

• Deepak Nitrite: The company carried our restoration steps and submitted stability certificates to government with respect to fire incident at Nandeswari plant. Gujarat Pollution Control Board has issued directions revoking the closure order and allowed the company to operate a part of the plant, 50% of consented capacity of Nitro section.

• Hindustan Zinc: The company shared its Q1FY23 business update in which Mined Metal Production came at 252 kilo tonnes vs 295 kilo tonnes QoQ (-15%) and 221 kilo tonnes YoY (+14%). Sequentially it was lower on account of lower ore production at mines & overall metal grades. Integrated metal and zinc production rose 10% YoY eah while lead production rose 11%.

• Hero MotoCorp: The company’s sales rose 3.34% YoY to 4,84,867 units in June. Domestic motorcycle sales rose 4.5% YoY to 4,61,421 units. Domestic scooter sales fell 15% to 23,446 units. Exports fell 29.3% to 21,657 units.

• TVS Motor: The company registered a growth of 22% in June 2022 with sales of 308,501 units. Exports rose 8% to 114,449 units. Total two-wheelers sales grew 23% to 293,715 units. Three-wheeler sales grew by 7% to 14,786 units. Domestic sales include sales of EV that recorded its highest ever sales of 4,667 units, a 77% growth over May 2022.

• Endurance Technologies: The company has acquired 51% of the share capital in Maxwell Energy Systems for Rs 135 crore. Balance 49% stake will be purchased in a phased manner in five tranches, spread over the next five financial years.

• Bharat Forge: The company has completed the acquisition of JS Autocast Foundry at an enterprise valuation of Rs 489.63 crore.

• Mahindra & Mahindra: The company sold 54,096 vehicles in June 2022. The domestic passenger car sales grew 59% year-on-year to 26,880 units in June 2022. Exports rose 7% to 2,777 units.

• Eicher Motors: The company’s total motorcycle sales rose 44% to 72,594 units in June 2022. Domestic sales rose 43% to 61,407 units. Exports rose 54% to 11,142 units.

• Mazagon Dock Shipbuilders: The company launched Fuel Cell Electric Vessel prototype, FCEV MD. It is the first hydrogen boat prototype which has been conceptualized and developed by the company Ltd. with Tata Advanced Systems and Vijai Marine Services as technology partners.

• Muthoot Finance: It has received permission from the Reserve Bank of India to open 150 new branches.

• Brigade Enterprises: WTC Trades & Projects, a wholly owned subsidiary of the company has acquired 63% stake in Tandem Allied Services for Rs 51.03 crore.

• MCX: Chief Regulatory Officer Sanjay Golecha resigned with effect from June 30.

• National Fertilizers: The total fertilizer sale rose 47% yoy in April-June 2022. It reported total sale of 15.56 lakh MT compared to 10.62 lakh MT in the corresponding period of last year.

• NMDC: The company’s sale of iron ore fell 40.25% yoy to 1.9 MT in June and production fell 13.75% to 2.57 MT.

• Jaiprakash Associates: The company has defaulted on loans of Rs 3,091 crore as on May 31.

• Metropolis Health: The company has received NCLT approval for merger of Bokil Golwilkar Metropolis Healthcare, Desai Metropolis Health Services, Patel Metropolis Healthcare, Lab One Metropolis Healthcare Services, Micron Metropolis Healthcare, R. V. Metropolis Diagnostic & Health Care Center, Raj Metropolis and Sudharma Metropolis Health Services with the company.

• Asian Granito: Future Ceramic, a wholly owned subsidiary of the company, commenced work on the large format glazed vitrified tiles plant at Morbi.