Sensex, Nifty Snap Three-Day Winning Streak Dragged By Bharti Airtel, I.T. Stocks
Catch all live updates on share prices, index moves, corporate announcements and more from the Sensex and Nifty, today.
KEY HIGHLIGHTS
Closing Bell
India's stock benchmarks recovered from day's low, but still closed with losses as they snapped a three-day winning streak.
Losses in information technology after TCS' Q1 numbers and ahead of HCL's June-quarter earnings as well the 5% fall in Bharti Airtel following Adani Group's foray into telecommunications space weighed on markets as they offset gains in metal, oil and gas, energy and power stocks.
The Sensex fell 0.16% (less than 100 points) to 54,395.23. The 30-stock gauge lost nearly 400 points to an intraday low of 54,090.53 before trimming the losses. The Nifty 50 declined by similar magnitude to 16,216. Today 28 of the Nifty 50 stocks rose while 22 fell.
The broader indices outperformed their larger peers with MidCap gauge gaining over 0.6% and SmallCap index adding 1.2%. Fifteen of the 19 sectoral indices compiled by BSE advanced with Power and Utilities measures rising over 4%. On the flipside, Information Technology and Teck indices slid 3%.
The market breadth is skewed in the favour of bulls. About 2,103 stocks rose, 1,318 fell and 161 remained unchanged.
10-Bond Yield Rises 1bps On Monday
Yield on the 10-year bond jumped 5bps to 7.48% during the session.
The 10-year bond yield eased off those levels to close at 7.43%, up 1bps from Friday's close of 7.42%.
Source: Bloomberg
Rupee Closes At Fresh Record Low
Rupee fell 19 paise (0.23%) to a record low 79.44, during the session.
The Indian currency closed at 79.44 against the U.S. dollar, a fresh closing low, as well.
The depreciation of the Indian Rupee comes amid strong dollar and sustained outflows from Indian equities.
Source: Bloomberg
Bank Of Baroda Closes At Day's High
Power Stocks Surge; S&P BSE Power Index Gains Most In Three Months
S&P BSE Power Index rose over 4.3%, the most in three months since April 11.
Adani Green jumped over 14.4% in intraday trade, best day since April 11 as well.
Barring Siemens and Power Grid, all the other nine constituents of the power index edged higher.
Source: Bloomberg
Zydus Lifesciences Gains Most In Over A Week
Shares of Zydus Lifesciences rose nearly 2%, the most in over a week. The company received final approval from U.S. FDA to market Empagliflozin and Metformin Hydrochloride Tablets in the strengths of 5 mg/500 mg, 5 mg/1000 mg, 12.5 mg/500 mg and 12.5 mg/1000 mg.
The tablets are used to improve glycemic control in adults with type 2 diabetes mellitus. The drugs also lower the risk of cardiovascular death. The drug which will be manufactured at the company's Ahmedabad plant had an annual sales of $281 million in the U.S., in the twelve months ended May 2022, according to IQVIA.
Of the 35 analysts tracking the company, 22 maintain 'buy', 11 suggest 'hold' and two recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 14.9%.
Source: Exchange filing, Bloomberg
ITC Rises To Fresh 52-Week High; RSI Above 70
Shares of ITC rose over 1.3% to a fresh 52-Week High of Rs 296.95.
The relative strength index of the stock is 72, suggesting it may be overbought.
The stock has gained nearly 42% in 2022 so far compared to nearly 6.5% losses for Nifty 50.
ITC is among the top gainers in Sensex and Nifty in 2022 so far, only next to Mahindra & Mahindra.
Source: Bloomberg
FMCG, Auto Sectors Are New Leaders Of Recovering Market, Says Gautam Shah Of Goldilocks
Paytm Rises To Two-Week High
Shares of One 97 Communications rose nearly 3%, the most in three sessions, to a two-week intraday high of Rs 719 apiece.
The rise comes after the company's total loan disbursals rose 492% YoY to 8.5 million in quarter-ended June, according in its Q1 operational update.
Total loan value rose 779% YoY to Rs 5,554 crore
Disbursements gained 492% YoY to over Rs 24,000 crore in June.
Average monthly transacting users (MTU) at 74.8 million for the quarter ending June, up 49% YoY.
Merchant payment volumes (GMV) for Q1 rose 101% YoY to Rs 2.96 lakh crore.
Of the 10 analysts tracking the company, five maintain 'buy', two suggest 'hold' and three recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 21.1%
Source: Exchange filing, Bloomberg
Banks Gain Amid Reports Of Finance Ministry Seeking Law Ministry's Approval For Rules To Privatise State-Run Banks
Shares of banks rose after Bloomberg reported that finance ministry sought the approval of law ministry for its rules to privatise state-run banks, Bloomberg reported citing an unidentified government official.
Finance Ministry is likely to seek cabinet nod for the rules after the approval from law ministry.
Government may present the proposed rules during the parliament's Monsoon Session, the reported quoted the government official.
The rise also comes amid report by Business Standard on Monday claiming that the government may allow individual investors to own over 10% in state-run banks, without citing the source of the information.
All the constituents of Nifty PSU Bank index advanced with Indian Bank, Bank of Baroda and Indian Overseas Bank leading the gains. Barring Kotak Mahindra Bank, all the other 11 constituents of the Nifty Bank index also advanced.
Source: Bloomberg, Business Standard
Steel Stocks Surge Amid Reports Of Potential Export Duty Cut On Key Products
Shares of steelmakers surged, with Jindal Steel & Power rising over 5%. The Nifty Metal index surged over 2.6% with twelve of the 15 constituents logging gains.
The rise comes after Financial Express reported that the government is likely to cut or abolish the recently-imposed export taxes on key steel products soon, citing unidentified sources that the government.
The country had levied a 15% export duty on several finished steel products and pig iron to tackle inflation and increase output, on May 21.
The export duty iron ore fines and lumps have been increased to 58% and 50% as well.
Source: News reports, Bloomberg
European Markets Decline
European markets decline amid fall in U.S. equity futures; Mining and auto stocks declined. British pound also slid as the race to find a successor to replace Boris Johnson as UK Prime Minister intensified.
Source: Bloomberg
Thomas Cooks Gains On Launch Of Vistara Getaways - International In Exclusive Partnership With Vistara
Shares of Thomas Cook gained over 5.5% and are on course to rise for fourth day. The stock has added 9% over the period.
Today's uptick comes after the omnichannel travel services firm and its group company, SOTC travel launched Vistara Getaways- International, in exclusive partnership with Vistara.
The company had already launched Vistara Getaways (Domestic) last year. Vistara Getaways provides users with dynamic inventory and ready-to-book holidays.
They offer flights, transfers, premium hotel stays, sightseeing experience solutions
Trading volume is 2.3 times the 30-day average. The share price crossed above 50-day simple moving average, indicating potential upward price momentum.
Source: Exchange filing, Bloomberg
HCL Technologies Slides Most In Over Seven Weeks Ahead Of June Quarter Results
Debasish Nanda Appointed As Director (Business Development) On Coal India's Board
Ministry of Coal has appointed Debasish Nanda as Director (Business Development) on the board of Coal India, with effect from July 11 till the date of his superannuation, May 31, 2025.
Source: Exchange filing
LG Energy Solution to supply batteries for Mahindra's EV SUV: FN News
LG Energy will supply batteries for Mahindra's XUV400 model, Japan's Finance News reports, citing unidentified people in the industry.
Mahindra will unveil the XUV400 model (compact electric SUV) in September.
Vehicle delivery is expected to be in the fourth quarter of this Calendar Year to January 2023.
Source: FN News Japan
Mid-Day Market Update: Sensex, Nifty Fall; I.T. Stocks Lead Decline
India's stock benchmarks declined at the start of a new week, dragged by I.T. stocks following TCS' Q1 numbers and telecom stocks, especially Bharti Airtel, after Adani group announced foray into telecom sector. The rupee fell to a fresh record low amid strong dollar and outflows from equities while the 10-year yield rose after RBI's MPC member Shashank Bhide highlighted the need for aggressive rate hikes to arrest the rise in inflation.
The Sensex fell nearly 300 points (over 0.5%) to 54,189.21. The Nifty also declined by similar magnitude to 16,149.65. About 23 of the Nifty 50 stocks rose while 27 fell.
The broader indices outperformed their larger peers with MidCap index gaining 0.1% and SmallCap index rising 0.5%. Fourteen of the 19 sectoral indices compiled by BSE advanced with Power and Utilities indices adding 3%. On the flipside, the Information Technology and Teck indices lost 3%.
The market breadth is skewed in the favour of bulls. About 1,803 stocks rose, 1,464 fell and 173 remained unchanged.
Coal India Gains 6% In Three Days
Shares of Coal India rose over 2.3% in intraday trade, and are on course to rise for the third day in a row. The stock has risen 6% in three days.
Dolat Capital upgraded the stock to 'buy' and set the target price to Rs 225, an implied return of 17% on July 7, when the three-day winning streak began.
The company informed exchanges on market hours today that the company's capex jumped to Rs 3,034 crore in Q1FY2024 compared to Rs 1,193 crore in Q1FY2022. The capex increase came on the back of strong spending in acquiring land and strengthening transport infrastructure in its coalfields under first mile connectivity projects, Coal India said.
Land acquisition is at Rs 608 crore, accounting for nearly one-fifth of the first quarter's total capex basket, a 2.3 times increase compared to Rs 268 crore spent on land acquisition in Q1FY2022.
Of the 27 analysts tracking the company, 22 maintain 'buy', two suggest 'hold' and three recommend 'sell'. The return potential of the stock is 11.2%.
Source: Exchange filing, Bloomberg
10-Year Bond Yield Eases Off Day's High
Yield on the 10-year bond rose 6bps to 7.48% during the session. The uptick in yield comes after a member of RBI's MPC highlighted the need for aggressive rate hikes to arrest the rise in inflation.
Source: Bloomberg
Rupee Falls To Record Low
Rupee depreciated 0.23% (18 paise) to 79.44 against the U.S. dollar, during the session. The decline comes amid strong dollar and outflows from equities.
Source: Bloomberg
Himadri Speciality Chemicals Gains 45% In Seven Days
Shares of Himadri Speciality Chemical rose over 11.7% in intraday trade. The stock is on course to gain for the seventh day, rising over 45%.
Today's rise comes after the promoters of the company (SSC Family and BLC Family) have inter-se entered into a family agreement by virtue of which BLC Family have cease to hold any right in the management and/or control in the company.
In an exchange filing, they company said that the promoter (BLC family) have also submitted request/application under Regulation 31A of SEBI listing regulations to reclassify themselves from promoter and promoter group to public category. The FSA has been entered to amicably settle all past issues between SSC family and BLC family.
Trading volume is more than 11 times the 30-day average. The relative strength index is at 81, suggesting that the stock may be overbought. The company is scheduled to announce its earnings for the quarter-ended June on July 13.
Source: Exchange filing, Bloomberg
Goa Carbon Surges On Resumption Of Operations At Bilaspur Unit
Shares of pet coke maker Goa Carbon surged over 11.5%. Trading volume is five times the 30-day average.
The rise comes after the company announced post market hours on Friday that its Bilaspur unit has resumed for production.
Goa Carbon lit up the kiln from Friday and said that the commencement of feeding of raw materials and normal production will resume shortly.
Source: Exchange filing, Bloomberg
Paytm's Total Loan Disbursals Rise 492% YoY In Quarter-Ended June
Paytm's total loan disbursals rose 492% YoY to 8.5 million in quarter-ended June, says the company in its operational update.
Total loan value rose 779% YoY to Rs 5,554 crore
Disbursements gained 492% YoY to over Rs 24,000 crore in June.
Average monthly transacting users (MTU) at 74.8 million for the quarter ending June, up 49% YoY.
Merchant payment volumes (GMV) for Q1 rose 101% YoY to Rs 2.96 lakh crore.
Source: Exchange filing
M&M Extends Gains As Analysts Expect Significant Strides In EV Space
Shares of Mahindra & Mahindra rose nearly 3% and are on course to extend gains for fourth day. The stock rose over 7% in the last four days and is among the top Nifty 50 gainers in today's session. M&M rose over 5.4% on Friday in intraday trade. before paring the gains.
Most analysts maintained 'buy' and raised target price post the announcement. Nirmal Bang downgraded the stock from 'buy' to 'accumulate', but raised target. They cite the uptick in demand, robust order book, launch of new Scorpio N to aid overall booking. They expect the EV arm to be asset-light and leverage synergies of the company in manufacturing, sourcing as well as reaching out to dealers and suppliers.
Of the 46 analysts tracking the company, 41 maintain 'buy', three suggest 'hold' and two recommend 'sell'. The return potential of the stock is 5.3%. Trading volume is nearly 1.5 times the 30-day average. The relative strength index is 72, suggesting it may be overbought.
Source: Brokerage notes, Exchange filing, Bloomberg
Supreme Court Sentences Vijay Mallya To Four Months Jail For Contempt Of Court
In May 2017, Mallya was found guilty of contempt for transferring $40 million to his children in violation of the apex court's order.
Mallya showed no remorse, said the top court.
The top court had reserved its order on the quantum of punishment for contempt of court in March 2022.
Rupee Falls To Record Low
Rupee depreciated 0.20% (16 paise) to fresh record low of 79.41, during the session. The decline comes amid strong dollar and outflows from equities.
Source: Bloomberg
Dr. Reddy's Jumps Most In Four Weeks
Shares of Dr. Reddy's Laboratories rose over 3%, the most in over four weeks to Rs 4,545 apiece. The stock is the top gainer in the Nifty 50 index and among the top gainers in Nifty Pharma index, which rose by 0.7%.
The rise in pharma stocks comes after India Ratings and Research Pvt said that the industry revenue rose 16.6% YoY in June, citing All Indian Origin Chemists and Distributors.
The company also announced the launch of Fesoterodine Fumarate Extended-Release tablets in the U.S. market after the approval of U.S. FDA, post market hours on Friday.
Trading volume is more than twice the 30-day average. The share price crossed above 200-day moving average. Of the 43 analysts tracking the company, 38 maintain 'buy', five suggest 'hold'. The return potential of the stock is 10.3%.
Source: Exchange filing, Bloomberg
TCS Leads The Decline In I.T. Index
Bharti Airtel Falls Most In Over Four Months
Shares of Bharti Airtel fell nearly 5%, the worst slump since Feb. 24 when Russia began its invasion of Ukraine. The stock is the biggest drag S&P BSE Telecom index which is down over 0.7%.
The declines comes after Adani Group sought to bid for 5G airwaves to provide private network and cybersecurity solutions in its other businesses such as airport, port and logistics, post market hours Friday.
Dolat Capital, in its report on July 9 said that if Adani Group's investment focused on greenfield/ brownfield expansion (through VIL) instead of only for captive 5G networks, then it would imply de-rating for Bharti Airtel and Reliance Jio.
Adani Group clarified on Saturday that the intention the telecom foray in not aimed at consumer communication services, but to use 5G spectrum, if awarded for private network solutions.
Of the 34 analysts tracking the company, 31 maintain 'buy', two suggest 'hold' and one recommends 'sell'. The return potential of the stock is 26.4%.
Source: Company statement, PTI, Brokerage notes, Bloomberg
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.
Avenue Supermarts Jumps On Q1 Beat
Shares of Avenue Supermarts rose nearly 4% after the company saw its net profit rise by more than half sequentially in the quarter-ended June and beat average analyst estimate. Dmart posted highest ever quarterly revenue in Q1.
Revenue jumped 14% QoQ while operating profit gained 36% sequentially. Margin expanded to 10% from 8.4% QoQ despite the 12% rise in total expenses.
Analysts cited sustained improvement in product mix, the company's position in India's retail growth story and the benefits from unorganised to organised shift as key growth drivers, as they reiterated their recommendations.
Trading volume is nearly 11 times the 30-day average. The relative strength index of the stock is at 71, suggesting it may be overbought.
The stock is on course to extend winning streak for the sixth day in which it has gained 21%.
Of the 26 analysts tracking the company, 17 maintain 'buy', two suggest 'hold' and seven recommend 'sell'. The return potential of the stock is -3.1%.
Source: Exchange filing, Brokerage notes, Bloomberg
TCS Tumbles Most In Four Weeks After Q1 Results
Shares of Tata Consultancy Services lost nearly 4%, the steepest intraday decline in four weeks. The fall comes after the company reported sequential growth in revenue in Q1FY2022-23. Analysts remained cautious citing margin pressure and recession worries.
EBIT margin contracted to 23.1% in Q1FY2022-23 compared to 24.96% in Q4FY2021-22.
Credit Suisse, Incred Research and Reliance Securities have downgraded the stock after the results.
Of the 48 analysts tracking the company, 21 maintain 'buy', 16 suggest 'hold' and 11 recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 12.3%. TCS is the top laggard on the Nifty IT index as well.
Source: Brokerage notes, Bloomberg, Exchange filing
Opening Bell: Sensex, Nifty Decline; TCS Falls
India's stock benchmarks opened lower, dragged by losses in information technology and telecom stocks.
The S&P BSE Sensex fell 0.4% (over 230 points) to 54,246.51. The NSE Nifty 50 declined by similar magnitude to 16,161. Today 18 of the Nifty 50 stocks while 32 fell.
The broader indices outperformed their larger peers with S&P BSE MidCap gaining 0.2% and S&P BSE SmallCap remaining littlechanged. Thirteen of the 19 sectoral indices compiled by BSE advanced, with Power and Utiliting rising over 1%. On the flipside, S&P BSE Information Technology and Teck indices lost nearly 2%.
The market breadth is skewed in the favour of bulls. About 1,388 stocks advanced, 955 declined and 128 remained unchanged.
Rupee Falls To Near-Record Low
Indian currency fell 0.11% (9 paise) to near-record low 79.34 against the U.S. dollar, at the open.
Rupee fell to a record low 79.37 on July 6.
Source: Bloomberg
Trade Setup For Monday
Stocks To Watch
HDFC/HDFC Bank: The company received approval from Pension Fund Regulatory and Development Authority for the scheme of merger with HDFC Bank. The scheme is yet to receive approval from Competition Commission of India, the National Company Law Tribunal and company’s shareholders and creditors.
CCL Products: The company has forayed into plant-based meat products in India through the launch of its brand Continental Greenbird.
Dr Reddy’s: The company has launched Fesoterodine Fumarate rxtended-release tablets, a therapeutic generic equivalent to Toviaz, in the U.S. market.
Hindustan Aeronautics: The company along with France based Safran will be jointly develop engines for military helicopters. The new joint venture will develop and produce engines in India. The engines will be used in multi-role helicopters and the deck based ones used by the Indian Navy and the coast guard.
Bandhan Bank: The bank’s loans and advances rose 20% YoY to Rs 96,649 crore in quarter from April to June. Deposits also grew 20% to Rs 93,057 crore. CASA ratio stood at 43.2% on June 30.
Zydus Lifesciences: The company has launched Sitaglyn and Siglyn (Sitagliptin), for the management of Type 2 diabetes at a 60% low cost than the originator.
Linde India: The company inaugurated its first-ever women operated Packaged Gas Plant in Trichy.
Indian Overseas Bank: The bank raised MCLR by 10 basis points across tenors effective from July 10.
PowerGrid: The company has been declared as the successful bidder under Tariff based competitive bidding to build the project comprises establishment of two 400kV DIC Transmission lines passing through the states of Rajasthan and Madhya Pradesh, a New 400/220kV Pooling Substation at Neemuch (Madhya Pradesh) and 400kV bay extension works.
Federal Bank: The Reserve Bank of India levied Rs 5.72 crore penalty on account of non-compliance with RBI norms on incentives paid to employees.
Bank of India: The Reserve Bank of India levied Rs 70 lakh on account of non-compliance with RBI norms on issuing unique customer codes.
Himadri Speciality Chemical: Promoters of the company (SSC Family and BLC Family) have inter-se entered into a family agreement by virtue of which BLC Family have cease to hold any right in the management and/or control in the company. They have also submitted request/application under Regulation 31A of SEBI listing regulations to reclassify themselves from promoter and promoter group to public category. The FSA has been entered to amicably settle all past issues between SSC family and BLC family.
Earnings To Watch: Spandana Sphoorty Financial.
Earnings Post Friday Market Hours
Tata Consultancy Services Q1 FY23 (Consolidated, QoQ)
Revenue up 4.28% at Rs 52,758 crore Vs Rs 50,591 crore (Bloomberg Estimate: Rs 5 2,473.5 crore)
EBIT fell 3.5% at Rs 12,186 crore Vs Rs 12,628 crore (Bloomberg Estimate: Rs 12,413)
EBIT margin 23.1% Vs 24.96% (Bloomberg Estimate: 24%)
Net profit fell 4.5% at Rs 9,478 crore Vs Rs 9,926 crore (Bloomberg Estimate: Rs 9,908-crore)
Attrition inched up to 19.7% Vs 17.4%
Declared interim dividend of Rs 8 per share of face value of Rs 1 each
MMTC Q4 FY22 (Consolidated, QoQ)
Revenue fell 3% to at Rs 2,255.59 crore Vs Rs 2320.63 crore
EBITDA Rs 512.52 crore Vs negative Rs 19.38 crore
EBITDA margin 22.72% Vs -0.84%
Net profit of Rs 118.38 crore Vs net loss of Rs 73.89 crore
Sensex, Nifty Set To Fall; DMart, TCS, HAL, Zee, Telecom Stocks In Focus
Stocks in Asia rose on Monday after strong U.S. employment report on Friday and post-election rally in Japan. The possibility of more Covid curbs in China could, however, dampen sentiment.
Japan shares climbed 1.5%, as ruling coalition expanded its majority in an upper house election. US and European equity futures fell while crude oil was volatile around $105 per barrel.
At 6:40 am, the Singapore-traded SGX Nifty -- an early barometer of India's benchmark Nifty 50 -- fell 0.13% to 16,206.50.
Elsewhere, the pound fell as the race to replace Boris Johnson as UK premier heats up.