Sensex, Nifty Fall Nearly 1% To Extend Losing Streak To Second Day
Sensex, Nifty fell nearly 1%, dragged by broad based losses across sectors led by I.T., FMCG, auto, banking and metal stocks.
KEY HIGHLIGHTS
Closing Bell
India's stock benchmarks fell nearly 1%, dragged by broad based losses across sectors led by information technology, FMCG, auto, banking and metal stocks. The decline comes amid fall in Asian and European markets after technology shares dragged the Wall Street down on Monday.
The Sensex fell 0.94% to close near day's low at 53,886.61. This is the first time the 30-stock gauge closed before 54,000 in four sessions since July 6.
The Nifty 50 also declined by similar magnitude to 16,058.30. Today 44 of Nifty 50 stocks fell while six rose. This is the worst day for the index in almost three weeks since June 22.
The broader indices outperformed their larger peers with both the MidCap and SmallCap gauges shedding 0.5%. Fifteen of the 19 sectoral indices compiled by BSE declined with FMCG, Information Technology, Auto, Metal and Teck indices losing over 1%. On the flipside, Telecom, Utilities, Power measures gained 1%.
The market breadth is skewed in the favour of bears. About 1,477 stocks rose, 1,818 fell and 172 remained unchanged.
10-Year Bond Yield Falls
Yield on the 10-year bond fell 3bps to close at 7.39%.
Source: Bloomberg
Rupee Closes At New Low
Indian currency fell 0.28% (22 paise) to record low 79.66 against the U.S. dollar, during the session.
The Rupee trimmed losses to 79.60, a new closing low.
Source: Bloomberg
Euro Extends Decline To Reach Parity With U.S. Dollar
Rail Vikas Nigam Gains Most In Nearly Six Weeks
Shares of Rail Vikas Nigam rose after a consortium of the company and SP Singla Constructions was awarded a Letter of Acceptance (LoA) by National Highways Authority of India (NHAI) on July 11. The LoA pertains to construction of four-lane of National Highway between Kaithlighat and Shakral Village in Himachal Pradesh. The design length of the project is 17.47 km. The total estimated cost of the project is Rs 1,844.77 crore.
Both the analysts tracking the company maintain 'buy'. The return potential of the stock is 46.2%.
Source: Exchange filing, Bloomberg
Rakesh Jhunjhunwala-Backed Star Health Gains Over 20% In Four Days
Shares of billionaire Rakesh Jhunjhunwala-backed Star Health & Allied Insurance Co rose nearly 7.5%, the most in three days.
The stock is on a four-day winning streak in which it added over 21%.
The rise comes after the company and Common Services Centers, under Ministry of Electronics & Information Technology partnered to provide over 5 lakh CSCs access to Star Health insurance products.
These products have been designed specifically to suit the needs of rural customers.
The partnership is intended to increase rural health insurance penetration in rural India.
The added distribution network is likely to aid the market share growth, Star Health said in an exchange filing post market hours on Monday.
Trading volume is thrice the 30-day average.
Despite the surge in the last four sessions, the stock is down 25% for the year compared to 6% losses for Sensex.
Of the 14 analysts tracking the stock, 10 maintain 'buy', one suggests 'hold' and three recommend 'sell'.
The overall consensus price of analysts tracked by Bloomberg implies an upside of 26.4%.
Source: Exchange filing, Bloomberg
European Markets Decline
European markets decline, dragged by technology and auto stocks.
Euro slides to near-parity with the U.S. dollar, amid energy crisis.
Source: Bloomberg
Jefferies Sees Parallels Between Adani's 5G Foray & Mukesh Ambani's Telecom Entry In 2010
Euro Falls Nearly 2% In Two Days
Ahluwalia Contracts Rises Most In Over 15 Weeks
Shares of construction firm Ahluwalia Contracts rose over 12.5%, the most in over 15 weeks.
The rise comes after Ahluwalia Contracts secured the new order for construction work of Amity Campus Bengaluru, aggregating to Rs 150 crore from Ritnand Balved Education Foundation.
The total order inflow for the company during FY2022-23 is Rs 863 crore.
Trading volume is 18 times the 30-day average. Share price crossed above 50-day and 200-day simple moving average, indicating potential upward price momentum.
Of the 11 analysts tracking the company, 10 maintain 'buy' and one suggest 'hold'. The return potential of the stock is at 12.6%.
Source: Exchange filing, Bloomberg
HCL Tech Sheds Over 5% In Two Days
Mid-Day Market Update: Sensex, Nifty Fall; Infosys Leads Decline
India's stock benchmarks declined, dragged by metal, auto, fmcg, banking and information technology stocks, amid decline in global equities after technology firms dragged U.S. markets, rising concerns over inflation and Covid curbs in China.
The Sensex fell nearly 400 points (0.7%) to 53,997.65. The Nifty 50 declined by similar magnitude to 16,098. About 42 of the Nifty 50 stocks fell and eight rose.
The broader indices outperformed their larger peers, with MidCap index losing 0.4% and SmallCap falling 0.25%. Fifteen of the 19 sectoral indices compiled by BSE Ltd. declined with metals, auto, fmcg and information technology stocks.
The market breadth is skewed slightly in the favour of bears. About 1,500 stocks rose, 1,647 fell and 176 remained unchanged.
Adani Data, Jio, Airtel, Vodafone Idea Apply To Bid For 5G Airwaves
Adani Data Networks, Reliance Jio, Bharti Airtel and Vodafone Idea have applied to bid for rights in the upcoming auction.
The firms have applied to use spectrum in 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz Bands.
Source: Department of Telecommunications
BLS International Climbs As Nomura Singapore Buys 12.5 Lakh Shares At Rs 214
Shares of BLS International Services rose over 4.6%, most in a week.
The rise comes after Nomura Singapore Ltd bought 12.5 lakh shares at Rs 214 apiece on Monday.
Trading volume is more than 2.5 times the 30-day average.
Source: NSE, Bloomberg
Telecom Equipment Makers Rise As India Tightens Supply Rules
Shares of telecom equipment makers like ITI, Tejas Networks and Indus Towers surged after government tightened rules of equipment supply. The S&P BSE Telecom is one of the top sectoral gainers in Tuesday's session.
On Monday, the government amended Unified Access Services License Agreement (UASL) that pertains to the procurement of telecommunication equipment. According to the modification, wireless service providers have been mandated to buy only from suppliers designated as trusted sources by the government. Earlier, wireless service providers had to seek permission from designated authority for upgradation of existing network. That has now been extended to expansion of existing network that utilises equipment from a source not designated as 'trusted'. The rule is effective from June 15, 2021.
The move is aimed at stopping Chinese equipment providers like Huawei and ZTE from supplying gear to Indian wireless service providers and comes amid probes in India on Huawei, ZTE, Xiaomi, Oppo and Vivo for alleged tax evasion, FEMA violations and financial irregularities.
Source: Department of Telecommunications, Bloomberg
Apollo Hospitals Gains Most In Six Weeks
Shares of Apollo Hospitals Enterprises Ltd rose over 4.2%, the most in over six weeks. The stock is the top gainer in the NSE Nifty 50 index.
Trading volume is nearly 2.5 times the 30-day average. Of the 26 analysts tracking the company, 24 maintain 'buy', one suggests 'hold' and one recommends 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 19.4%.
On July 6, The company announced a collaboration to integrate cardiovascular risk assessment tool with ConnectedLife. The tool used to predict cardiovascular risk will be integrated with ConnectedLife's digital solutions for wellness.
The stock has risen in seven of the last eight weeks with Monday's flat close being the only exception.
Source: PTI, Bloomberg
Pratik Pota's Appointment As MD & CEO Brings Gains To Eureka Forbes
Shares of Eureka Forbes gained over 10%, most in three weeks after the company approved the appointment of Pratik Pota as Managing Director and Chief Executive Officer of the company.
Pratik Pota's term will last for five years with effect from August 16, 2022. This is subject to shareholders' approval. Pratik Pota will focus on scaling the business, increasing market share and customer base.
Pratik Pota was the CEO at Jubilant Foodworks where he was credited for leading the business turnaround such as growth in Domino's franchise and expansion of EBITDA margins, besides overseeing digital transformation at the company
Trading volume on Eureka Forbes is more than twice the 30-day average. The relative strength index of the stock is 75, suggesting that the stock may be overbought.
Source: Exchange filing, Bloomberg
HFCL Surges After Bagging Purchase Orders Worth Rs 59.22 Crore
Shares of HFCL rose over 8.5% and are on course to gain over 15% in two days.
The company received purchase orders worth Rs 59.22 crore from one of the leading private telecom operators of the country, HFCL said in an exchange filing post market hours on Monday.
The order pertains to services in rolling out the Fiber-To-The-Home (FTTH) network and Long Distance Fiber Network in many cities.
The order is to be executed by July 2023. Trading volume is 11 times the 30-day average. The company is scheduled its earnings for the quarter-ended June today.
Source: Exchange filing, Bloomberg
Spandana Sphoorty Financial Falls Most In Two Weeks
Shares of Spandana Sphoorty Financial fell over 7.3% after the company reported a YoY decline in revenue, EBIT, EBIT margin and net profit for the Q4FY2022 post market hours on Monday.
Q4 FY22 (Consolidated, YoY)
Revenue fell 39% at Rs 286.82 crore Vs Rs 473.91 crore
EBIT fell 33% at Rs 133.45 crore Vs Rs 198.85 crore
EBIT margin 46.5% Vs 42%
Net profit fell 42% at Rs 28.44 crore Vs Rs 49.06 crore
The company approved an amount not exceeding Rs 4,000 crore for issuance of NCDs, in one or more tranches through private placement.
Trading volume is 1.5 times the 30-day average. All five analysts tracking the company maintain 'buy'.
Source: Exchange filing, Bloomberg
NMDC Tumbles As Kotak Cuts Target Citing Sales Contraction, Margin Headwinds
Shares of NMDC fell over 6.6%, the steepest intraday decline in over seven weeks since May 23. Trading volume is nine times the 30-day average.
The slide comes after Kotak Institutional Equtiies trimmed its target price to Rs 105 from Rs 110 (an implied downside of 3.67), but upgraded the stock to 'reduce' from 'sell'. Kotak anticipated further weakness for the company due to the 20% correction in seaborne iron ore prices in June. NMDC has already cut its prices by 36% through two revisions, due to imposition of export duty on specific steel products by the government.
The brokerage added that the export duty on pellets and iron one have 'plummeted' the country's iron ore exports and noted that the supply pressure is visible in the weak sales volume of NMDC, down 20% YoY in Q1 and -40% YoY in the month of June (after the price cut). Kotak Institutional Equities cut the company's volume estimates and EBITDA estimates due to domestic demand headwinds.
Of the 23 analysts tracking the company, 11 maintain 'buy', six suggest 'hold' and six recommend 'sell'. The return potential of the stock is 37.5%.
Source: Kotak Institutional Equities note, Bloomberg
Opening Bell: Sensex, Nifty Fall; Metals, I.T. Stocks Decline
India's stock benchmarks opened lower, dragged by losses in metals, auto, realty, information technology and FMCG stocks, amid in a slide in Asian equities after U.S. markets posted losses overnight, weighed by technology shares.
The S&P BSE Sensex fell 0.5% (over 270 points) to 54,122.05. The NSE Nifty 50 declined by similar magnitude to 16,128.20. About 44 of the Nifty 50 stocks fell while six rose.
The broader indices outperformed their larger peers with MidCap index falling 0.3% and SmallCap gauge losing 0.15%. Sixteen of the 19 sectoral indices compiled by BSE Ltd. declined, with Metal index losing nearly 2%.
The market breadth is skewed neither in the favour of bulls nor bears. About 1,043 stocks advanced, 1,065 fell and 111 remained unchanged.
10-Year Bond Yield Falls
Yield on the 10-year bond fell 3bps to 7.40% at the open.
10-year bond yield rose in each of the last three sessions.
Source: Bloomberg
Rupee Breaches 79.50 For The First Time
Indian currency fell 13 paise (0.18%) to 79.57 against the U.S. dollar, a a new low.
Source: Bloomberg
Kotak Institutional Equities Says NMDC's Margin Headwinds 'Priced In'
Kotak Institutional Equities
Upgrades from 'sell' to 'reduce' with the target price cut from Rs 110 to Rs 105, an implied downside of 3.67%.
Expects further weakness after NMDC cut its prices by 36% over the last two months due to the imposition of export duty.
Destocking by consumers led to contraction in sales value in Q1.
Expects recovery in sales volumes in H2FY2022-23E.
Believes that recent underperformance of the stock accounts for the sharp margin contraction anticipated in Q2FY2022-23E.
Cuts volume estimates by 3%/2%/2% in FY2023/24/25E, respectively.
Delays in commissioning and demerger act as hurdles to value unlocking from steel plant.
Cuts EBITDA estimates by 7%/7%/8% for FY2023/24/25E, respectively.
Sunteck Realty Posts Q1 Operational Update
Sunteck Realty pre-sales in Q1 at Rs 333 crores, up 89% year-on-year.
Collections at Rs 285 crore, up 66% year-on-year.
Source: Exchange filing
New project launches over the forthcoming quarters along with sales momentum in ongoing projects, shall lead to continued growth impetus in the pre-sales and cash flows of the company and thereby grow our market share.Company Statement
Trade Setup For Tuesday
June-Quarter Earnings: Analyst Estimates
Net Institutional Flows Turn Negative For Second Day
Earnings To Watch
HCL Technologies
Sterling and Wilson Renewable Energy
National Standard (India)
Delta Corp
Anand Rathi Wealth
Stocks To Watch
Indian Oil, BPCL, HPCL: May report Rs 10,700-crore loss in Q1, according to PTI.
Reliance Industries: Company said to be among those entities vying for Metro AG's Indian wholesale unit, reported Bloomberg.
Eureka Forbes: The company appointed Pratik Pota as Managing Director and Chief Executive Officer for a term of five years effective from Aug. 16. The appointment was made following current MD and CEO Marzin R Shroff’s resignation.
Bajaj Hindusthan: To appeal SEBI penalty at Securities Tribunal; SEBI had levied Rs 10 penalty on the company.
Star Health and Allied Insurance: The company has partnered with Common Services Centers, under Ministry of Electronics & Information Technology, to expand the insurance products to rural customers, across tier-II, tier-III cities and rural markets pan India.
Power Grid: The company has placed BS Jha under suspension with effect from July 5 after his arrest by CBI. The company said that it was not aware of any negotiations and that there is no material impact on the company.
Borosil Renewables: The company will consider fundraising through further public offer, issuance of American Depository Receipts or Global Depository Receipts, issuance of Foreign Currency Convertible Bonds, qualified institutions placement or through a combination on July 14.
Mangalore Refinery and Petrochemicals: To consider share issue for complying with minimum public shareholding requirements by issue of further public offer, preferential issue, qualified institutions placement on July 15.
HFCL: The company received an order from a domestic telecom company for their Fiber to the Home Network and Long Distance Fibre Network in various Telecom Circles. The order is worth Rs 59.22 crore.
Trident: The company production volumes for the month of June stood at 3,333 MT of Bath Linen, 1.95 million Meters for Bed Linen and 8,186 MT for Yarn. It also produced 12,500 MT Paper and 7,673 MT of Chemicals
Satin Creditcare: Plans to raise up to Rs 5,000 crore via bond sale.
SpiceJet: Sees another technical glitch after flight to Dubai.
Earnings Post Market Hours
Spandana Sphoorty Financial Q4 FY22 (Consolidated, YoY)
Revenue fell 39% at Rs 286.82 crore Vs Rs 473.91 crore
EBIT fell 33% at Rs 133.45 crore Vs Rs 198.85 crore
EBIT margin 46.5% Vs 42%
Net profit fell 42% at Rs 28.44 crore Vs Rs 49.06 crore
5 Paisa Capital Q1FY23 (QoQ)
Revenue at Rs 84 crore vs Rs 88 crore
Profit before tax at Rs 10 crore vs Rs 6 crore
Net profit at Rs 7 crore vs Rs 4 crore
Key Monitorables
Sensex, Nifty Set To Fall; HCL Tech, Delta Corp, Eureka Forbes, Power Grid, MRPL In Focus
Asian stocks were mostly lower on Tuesday amid concerns that the upcoming earnings season, a looming U.S. inflation print and China’s struggle with Covid will stoke worries about economic prospects.
The U.S. dollar rose the most in a month to rise to an over 2-year high, spurring the Euro to close in on parity, amid gas shortage and fears of economic recession.
Japan led the regional decline, while Hong Kong futures were also in the red following the worst drop in U.S.-traded Chinese shares since May. U.S. contracts wavered after technology shares led a Wall Street slide, including a plunge in Twitter Inc. as Elon Musk walked away from his deal to buy the firm.
As of 7:30 a.m., the Singapore-traded SGX Nifty -- an early barometer of India's benchmark Nifty 50 -- fell 0.70% to 16,085.50. HCL Technologies, Sterling and Wilson Renewable Energy, National Standard (India), Delta Corp, Anand Rathi Wealth are among the companies scheduled to report their earnings for the quarter ended June on Tuesday.
Treasuries extended gains, taking the U.S. 10-year yield to 2.98%. Crude oil shed 1%. Bitcoin dropped back below the $20,000 level.