Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities:
The USDINR spot touched a low of 74.31 on the back of lumpy corporate and IPO related dollar inflows, the lowest levels since early July. However, alleged intervention from the central bank pulled the pair near 74.38 by the close of day.
Tonight's US FOMC meeting will be a key driver of volatility. A hawkish or dovish turn will determine the next volatility in USDINR. A broad range of 74.00 to 74.60 is expected over the near term.
Abhishek Agarwal, Managing Partner, Rockstud Capital:
Markets remained volatile today but interesting thing to note is that despite acute turmoil in Chinese stock markets, we stood our ground well. This shows huge buying interest from investors waiting on the sidelines for a correction. PSU banks are delivering good results refereeing Canara Bank and UCO Bank numbers. Looking at overall IPO markets, especially the forthcoming ones, I think a huge correction is unlikely in the medium term.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
The market witnessed the continuation of the bearish movement after a failed attempt to hold the support level around the Nifty 50 Index level of 15700. If the market sustains below 15700, and can see the continuation in the correction till the next support level near 15420-15450. The traders are advised to refrain from building a new buying position until further improvement is seen in the market breadth.
Rupee Close:
Indian rupee ended higher by9 paise at 74.37 per dollar, amid selling saw in the domestic equity market.
It opened marginally higher at 74.43 per dollar against previous close of 74.46 and traded in the range of 74.31-74.49.
Market Close:
Benchmark indices erased most of the intraday losses but ended lower in the volatile session on July 28.
At close, the Sensex was down 135.05 points or 0.26% at 52,443.71, and the Nifty was down 37.10 points or 0.24% at 15,709.40. About 1299 shares have advanced, 1682 shares declined, and 90 shares are unchanged.
Among sectors, except metal index added over 1 percent and IT index rose 0.2 percent, however, selling was seen in the auto, bank, energy and pharma sectors.
BSE midcap index ended flat, while smallcap index fell 0.4 percent.
Dr Reddy’s Labs, Kotak Mahindra Bank, Tata Motors, Cipla and M&M were the top Nifty losers. Bharti Airtel, Tata Steel, SBI Life Insurance, Divis Labs and IndusInd Bank were among the top gainers.
Buzzing
Torrent Pharmaceuticals share price added over 2 percent on July 28 after the company declared its June quarter results.
The pharma company on July 27 reported a 2.8 percent year-on-year (YoY) rise in Q1FY22 net profit at Rs 330 crore, helped by India formulation, despite steep fall in US revenues.
The Ahmedabad-based drug maker reported Rs 321 crore net profit in the corresponding period of previous year. Total revenues rose 4 percent YoY to Rs 2,134 crore in Q1FY19, compared to previous year's Rs 2,056 crore. The earnings before interest, tax, depreciation and ammortisation (EBITDA) margins rose 200 basis points YoY to 34 percent in Q1FY22.
G R Infra emerges lowest bidder for NHAI project:
G R Infraprojects has been emerged as L-1 bidder for 'Development of 6-lane Amritsar-Bathinda Greenfield section of NH-754A from village Tiba on NE-5A to junction with Moga Jalandhar road (NH-703) near Dharamkot as a part of Amritsar-Jamnagar Economic Corridor in the state of Punjab under Bharatmala Pariyojana Phase-I (Package-1) on Hybrid Annuity Mode Project.
G R Infraprojects was quoting at Rs 1,734.95, up Rs 8.50, or 0.49 percent on the BSE.
Mahindra Lifespace Q1:
Mahindra Lifespace Q1 consolidated net loss was at Rs 14 crore versus loss of Rs 20 crore and revenue was at Rs 148.2 crore versus Rs 14.3 crore, YoY.
Mahindra Lifespace Developers touched a 52-week high of Rs 796.90 and was quoting at Rs 776.10, up Rs 34.20, or 4.61 percent.
Oil rises towards USD 75:
Oil rose towards USD 75 a barrel on Wednesday ahead of an industry report expected to show US crude inventories dropped more than expected, bringing the focus back to a tight supply and demand balance rather than rising coronavirus infections.
Gold holds steady as markets await Fed verdict
Gold prices held steady near the key $1,800-per-ounce level on Wednesday as investors held back from making large bets ahead of a U.S. Federal Reserve policy decision due later in the day.
Airtel raises entry-level pricing:
With a focus on improving realisation, Airtel on Wednesday announced revisions to its prepaid plans, raising its entry-level pricing by nearly 60 percent.
The telecom operator said it has discontinued its Rs 49 entry level prepaid recharge. The company's prepaid packs would now start from the Rs 79 smart recharge and offer up to four times more outgoing minutes of usage to customers along with double data, Airtel said in a statement.
Market at 3 PM
Benchmark indices are trading lower in the final hour of trading with Nifty below 15700.
The Sensex was down 213.84 points or 0.41% at 52364.92, and the Nifty was down 59.90 points or 0.38% at 15686.60. About 1177 shares have advanced, 1793 shares declined, and 83 shares are unchanged.
BLS International Services share price touches 52-week high
BLS International Services share price touched a 52-week high of Rs 157.45, gaining 15 percent on July 28 after company posted profit for the quarter ended June 2021.
The company has reported net profit of Rs 20.25 crore for Q1 FY22 against loss of Rs 0.8 crore in Q1FY21.
The revenue from operation was at Rs 178.53 crore versus Rs 52.14 crore, YoY.
Earnings before interest, tax, depreciation and amortization (EBITDA) stood at Rs 18.8 crore versus Rs 3.2 crore, growth of 488%, YoY.
Tata Coffee Q1:
Tata Coffee's Q1 consolidated net profit was down 20.3 percent at Rs 28.6 crore against Rs 35.9 crore (YoY) and revenue was down 9.3 percent at Rs 532.7 crore against Rs 587.5 crore (YoY).
Consolidated EBITDA fell 18.4 percent at Rs 90.2 crore against Rs 110.6 crore and margin stood at 16.9 percent against 18.8 percent (YoY).
Amarjeet Maurya - AVP - Mid Caps, Angel Broking
Today Bharti Airtel Ltd (BAL) stock is up ~ 5%. It is getting positive momentum in stock due to the company increasing tariffs rate for the postpaid subscriber. The company is increasing tariffs rate for the enterprise segment ( which account for around 60% of the company’s postpaid users) which would boost overall average ARPU for BAL. Going forward, we expect BAL to report healthy top-line & bottom-line growth on the back of a strong brand, growth in customer additions, and improvement in ARPU. Hence, we are positive on stock.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities:
Crude oil prices traded marginal up with benchmark NYMEX WTI crude oil prices were up by 0.33% to $71.89 per barrel for the day. MCX Crude oil August futures were trading half a percent up at Rs 5,364 by noon.
Crude oil prices are expected to trade sideways to up for the day with resistance at $73 and support at $70 per barrel. MCX Crude oil August has support at Rs 5,280 and resistance at Rs 5,450.
JSW Cement raises up to Rs 1,500 crore
JSW Cement, the cement arm of the $13 billion JSW Group, has entered into definitive agreements to raise up to Rs. 1,500 crore from two global private equity investors, Apollo Global Management Inc. (through its managed funds) and Synergy Metals Investments Holding.
Pfizer Q1:
Net profit jumped 60.6 percent at Rs 199.9 crore against Rs 124.4 crore (YoY). Revenue was up 45.5 percent at Rs 749.2 crore against Rs 515 crore (YoY). EBITDA gained 53.4 percent at Rs 285.7 crore against Rs 186.3 crore (YoY). EBITDA margin came in at 38.1 percent against 36.2 percent (YoY).
SRF Q1
Net profit came in at Rs 395.3 crore against Rs 177.1 crore (YoY). Revenue jumped 74.7 percent at Rs 2,699.4 crore against Rs 1,545 crore (YoY). EBITDA grew 84.9 percent at Rs 671.5 crore against Rs 363.2 crore (YoY) while EBITDA margin stood at 24.9 percent against 23.5 percent (YoY).
Intellect Design Arena Q1:
Consolidated net profit jumped 73 percent at Rs 73.7 crore against Rs 42.6 crore (YoY). Consolidated revenue was up 18 percent at Rs 408.3 crore against Rs 346 crore (YoY). Consolidated EBITDA jumped 47.5 percent at Rs 102.2 crore against Rs 67.9 crore (YoY) while consolidated EBITDA margin stood at 24.5 percent against 19.6 percent (YoY).
European markets are trading in the green at open with CAC up half a percent
Central Bank of India Q1:
Net profit jumped 51.8 percent at Rs 205.6 crore against Rs 135.4 crore (YoY). NII was down 0.5 percent at Rs 2,134.5 crore against Rs 2,145.3 crore (YoY). Net NPA at Rs 7,904 crore against Rs 9,036 crore (QoQ). Gross NPA at Rs 27,892 crore against Rs 29,277 crore (QoQ). Gross NPA at 15.92 percent against 16.55 percent (QoQ). Net NPA at 5.09 percent against 5.77 percent (QoQ). Provisions at Rs 556.5 crore against Rs 3,130.3 crore QoQ and against Rs 974.6 crore YoY.
Market update at 2 PM
Sensex is down 181.29 points or 0.34% at 52397.47, and the Nifty shed 50 points or 0.32% at 15696.50. Bharti Airtel was the top gainer while Cipla, M&M and Cipla dragged the most.
Among the sectors, metals and FMCG are trading in the green while auto and financials are under pressure.
Century Textiles Q1:
Consolidated net profit at Rs 21.6 crore against loss of Rs 40 crore (YoY). Consolidated revenue came in at Rs 841 crore against Rs 400 crore (YoY). Consolidated EBITDA stood at Rs 106.1 crore against Rs 20.4 crore (YoY). Consolidated EBITDA margin came in at 12.6 percent against 5.1 percent (YoY).
Tata Motors plans to hike passenger vehicle prices:
Tata Motors is looking to increase prices of its entire range of passenger vehicles from next week as it aims to offset the steep rise in procurement cost of essential materials like steel and precious metals, as per a top company official.
Tata Motors was quoting at Rs 285.60, down Rs 5.70, or 1.96 percent on the BSE.
Nifty Bank index shed 1 percent dragged by the Au Small Finance Bank, Kotak Mahindra Bank, PNB
Rolex Rings IPO fully subscribed on Day 1:
The initial public offering of Rolex Rings, one of the top five forging companies in India, is subscribed 1.28 times on July 28, the first day of bidding. This is the 30th public issue in 2021.
Investors have put in bids for 72.79 lakh equity shares against offer size of 56.85 lakh equity shares, the subscription data available on the exchanges showed.
Retail investors seem bullish as their reserved portion is subscribed 2.47 times and that of non-institutional investors is at 21 percent. Qualified institutional buyers are yet to put in their bids.
Gaurav Garg, Head of Research, CapitalVia Global Research:
On Wednesday, Indian equity indices began the day in the red, owing to weak global cues. Markets are quickly extending their losses and trading lower, with early trades showing a drop of more than a percent. Traders were concerned after the International Monetary Fund (IMF) slashed India's economic growth forecast for the current fiscal year by 300 basis points, to 9.5 percent, from 12.5 percent earlier in April. The IMF attributed the downward revision to a lack of vaccine access and the possibility of fresh coronavirus outbreaks.
On Tuesday, US equities slid from record highs, while real US bond yields touched all-time lows, as investors were put on edge by a sell-off in Chinese stocks, fears about economic growth, and the Federal Reserve's policy meeting, which prompted profit-taking. Following overnight Wall Street's widely bearish indications, most Asian markets were also trading lower.
We witnessed the continuation of the bearish movement in the market in the first half. Market broke an important support level of 15600. If the market sustains below the level of 15600, we can expect the market to continue the bearish movement till it finds the next support near 15450. On the sectoral front all major sectors have been trading negative. Divis Lab and HUL are the top gainers while Dr. Reddy's and Cipla are the top losers on Nifty.
Market at 1 PM
Indian benchmark indices erased some of the intraday losses, with Nifty trading above 15600.
The Sensex was down 362.25 points or 0.69% at 52216.51, and the Nifty was down 102.00 points or 0.65% at 15644.50. About 1078 shares have advanced, 1849 shares declined, and 77 shares are unchanged.
Heritage Foods Q1 results:
Heritage Foods' consolidated net profit fell 68.6% at Rs 30.3 crore against Rs 96.4 crore and revenue was up 1.4% at Rs 648 crore versus Rs 639 crore, YoY.
Heritage Foods touched a 52-week high of Rs 541.50 and quoting at Rs 509.70, up Rs 18.90, or 3.85 percent on the BSE.
IDBI Bank Q1 earnings:
IDBI Bank has posted net profit at Rs 603.3 crore versus Rs 144.4 crore and net interest income (NII) was up 41.4% at Rs 2,505.7 crore against Rs 1,772.4 crore, YoY.
IDBI Bank was quoting at Rs 38.05, up Rs 0.05, or 0.13 percent on the BSE.
BSE REalty index shed 1 percent dragged by the Indiabulls Real Estate, Mahindra Lifespace Developers, Oberoi Realty
Glenmark Life Sciences IPO oversubscribed by 3.59 times on day 1:
The Rs 1,513.6-crore public offer of Glenmark Life Sciences has been oversubscribed by 3.59 times on July 28, the second day of bidding.
The offer has received bids for 5.38 crore equity shares against IPO size of 1.5 crore equity shares, the subscription data available on the stock exchanges.
Retail investors have put in bids 6.66 times their reserved portion and the portion set aside for non-institutional investors was subscribed 1.12 times. The portion set aside for qualified institutional buyers saw 1 percent subscription.
Amarjeet Maurya - AVP - Mid Caps, Angel Broking:
Devyani International IPO expected to open on 4th august 2021 and close on 6th august 2021. The IPO consist fresh issue of Rs 440 crore and offer for sale of 15.5 crore crores shares.
Devyani International is the largest franchisee of Yum Brands and among the largest quick-service restaurants (QSR) chain operators in India with 655 stores across 155 cities all over the country as of March 31, 2021. Yum Brands Inc operates many fast food brands i.e. Pizza Hut, KFC, and Taco Bell brands.
It operates 3 business verticals; 1. Core Brands (KFC, Pizza Hut, and Costa Coffee stores in India), 2. International Business (stores in foreign countries i.e. Nepal and Nigeria), and 3. Other Businesses (own branded stores i.e. Vaango, Food Street, Masala Twist, Ile Bar, Amreli, and Ckrussh Juice Bar)
DIL reported revenue CAGR of -5% to Rs 1,199 crore over FY19-21 and on the bottom-line front, the company has reported losses over same period. In FY21, DIL’s loss was Rs 81 crore. The company would utilised their fresh issue amount for repayment of company's borrowings fully or partially.
Market at 12 PM
Benchmark indices erased some of the intraday losses but still trading lower with Nifty around 15600.
The Sensex was down 456.48 points or 0.87% at 52122.28, and the Nifty was down 135 points or 0.86% at 15611.50. About 921 shares have advanced, 1987 shares declined, and 67 shares are unchanged.
Bharti Airtel, Divis Labs, SBI Life Insurance, IndusInd Bank and Bajaj Finserv were among major gainers on the Nifty, while losers were Dr Reddys Labs, Axis Bank, Tata Motors, M&M and Tata Consumer Products.
Shilpa Medicare gets WHO nod for Tenofovir Disoproxil Fumarate:
Shilpa Medicare announced receipt of confirmation of WHO - GENEVA approval for API, Tenofovir Disoproxil Fumarate, a medication used to treat chronic hepatitis B and to prevent and treat HIV I AIDS, under pre-qualification program
Shilpa Medicare was quoting at Rs 638.95, up Rs 15.35, or 2.46 percent on the BSE.
Rolex Rings IPO subscribed 28% on Day 1
The initial public offering of Rolex Rings is subscribed 28 percent on July 28, the first day of bidding.
Investors have put in bids for 16.08 lakh equity shares against offer size of 56.85 lakh equity shares, the subscription data available on the exchanges showed.
Retail investors seem bullish as their reserved portion is subscribed 56 percent and that of non-institutional investors is at 1 percent. Qualified institutional buyers are yet to put in their bids.
Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities
USDINR is once again stuck in a narrow and listless range with spot USDINR closing just 4 paise higher 74.46. July futures is trading 4 paise higher at 74.48.
A sharp drop in Chinese currency triggered a depreciation in Rupee. However, the gains in USDINR were limited as corporate flows capped the upside. Over the near term we expect a range of 74.30-74.60,
BSE Auto index shed 1 percent dragged by the Motherson Sumi, Tata Motors, M&M
Rupee Updates:
Indian rupee is trading flat 74.45 per dollar,amid selling seen in the domestic equity market.It opened marginally higher at 74.43 per dollar against previous close of 74.46.
Cabinet could take up amendments to Insurance Laws and DICGC Act today
The Cabinet may take up amendments to Insurance Laws and DICGC Act today. GIBNA Act amendments to enable ceding of ownership and control in non-life insurers. DICGC Act changes to allow depositors time bound access to funds if the bank is in distress. The government is to bring GIBNA , DICGC Act amendments in this session of Parliament.
CLSA downgrades Ramco Cements to underperform
The Ramco Cements share price was down after the cement maker reported a 46.10 percent increase in consolidated net profit at Rs 171.67 crore for the quarter ended June, helped by growth in sales. It had posted a net profit of Rs 117.50 crore during the April-June period of the previous fiscal, it said in a regulatory filing. Global research firm CLSA has downgraded the stock to underperform from outperform and has cut the target to Rs 1,060 from Rs 1,140 per share.
Buzzing stock
The pharma major reported a consolidated profit of Rs 570.8 crore for the quarter ended June 2021, a 1.5 percent drop from the year-ago period, hit by lower operating profit and income. Profit in the June 2020 quarter stood at Rs 579.3 crore. The Hyderabad-based company's revenue from operations grew by 11.4 percent year-on-year to Rs 4,919.4 crore in Q1FY22.
ICICI Direct:
The USDINR is likely to remain volatile due to July series settlement today. However, the August series is starting with huge premiums and selling is expected in August contract.
The dollar-rupee July contract on the NSE was at Rs 74.48 in the last session. The open interest fell almost 27.1% for the July series.
Market Updates:
Benchmark indices extended the early losses and trading near the day's low level.
At 10:53 IST, the Sensex was down 605.77 points or 1.15% at 51972.99, and the Nifty was down 182.50 points or 1.16% at 15564. About 775 shares have advanced, 2047 shares declined, and 74 shares are unchanged.
