Ajit Mishra, VP - Research, Religare Broking:
In the near term, Q1FY22 earning is likely to provide some direction to the markets, in absence of any major triggers. So, we remain cautiously optimistic and believe any correction at this juncture should be considered healthy as investors will get the opportunity to invest in quality counters on dips. Meanwhile, investors will keep a close watch on global cues.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities:
We are of the view that the larger market structure is still positive and likely to continue in the near future if the market succeeds to trade above 15850/52900. Technically, the 20-day SMA or 15750/52500 should be the sacrosanct level for the market. Above the same, the uptrend texture is likely to continue up to 15930-16065/ 53300-53550. On the other side, the uptrend would be vulnerable if indices close below 15750/ 52500 or below 20 day SMA.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The markets managed to close in the green but were unable to cross 15,900 on a closing basis. If we can manage to do that, we should be heading to 16,100. A good support lies at 15,400 and as long as that holds, we are in bullish territory and corrective waves can be strategically utilized to buy this market.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
The market witnessed some lackluster movement and an attempt to hold the support level around the Nifty 50 Index level of 15800. The market shows that the expected levels are likely to be in the range of 15800 and 15950, and it is going to be crucial for the short-term market scenario to sustain above the 15800 Nifty50 Index level.
The momentum indicators like RSI and MACD have recovered from their respective oversold zone and support the upside move and indicating potential upside from the current market level.
Rupee Close:
Indian rupee erased intraday lossesbutended marginally lower at 74.61 per dollar, amid buying sawseen in the domestic equity market.
It openedmarginally lowerat 74.60 per dollar against Tuesday's close of 74.55 and traded in the range of 74.58-74.79.
Market Close:
Benchmark indices ended higher in the volatile session on July 7 with Nifty above 15,850.
At close, the Sensex was up 193.58 points or 0.37% at 53054.76, and the Nifty was up 61.40 points or 0.39% at 15879.70. About 1737 shares have advanced, 1372 shares declined, and 136 shares are unchanged.
Tata Steel, JSW Steel, Bajaj Finserv, Hindalco and UPL were among the top gainers on the Nifty. Top losers were Titan Company, ONGC, Maruti Suzuki, SBI Life Insurance and Shree Cements.
On the sectoral front, Realty and Metal indices rose 2 percent each, while selling was seen in the auto and oil & gas stocks. BSE midcap and smallcap indices ended in the green.
Abhishek Bansal, Founder Chairman, Abans Group
Gold august future contract prices fell back after registering a high of $1815.7 yesterday. Currently trading near $1804. However, the recent drop in US 10 year bond yield is likely to keep supported gold prices.
The US 10 year bond yield is currently trading near 1.356 which is the lowest level since March 2021 and sharply lower from the recent high of 1.776 registered on March 30th.
Gold prices are likely to find support near $1780-$1767 while it is likely to face stiff resistance near $1811-$1829
Tata Steel share price gains 4%
Tata Steel share price added over 4 percent on July 7 after global broking house CLSA maintained its buy rating on the stock and raised the target price to Rs 1,450 per share.
The company reiterated its focus on capacity expansion in India. The deleveraging remains crucial, while comfortable with 2x net debt-to-EBITDA. The risk-reward is attractive at the current levels, while current market prices imply a sharp correction in prices, which looks unlikely, it added.
The share price rose over 250 percent in the last year.
Amarjeet Maurya - AVP - Mid Caps, Angel Broking:
Titan Company (TCL) recorded revenue growth of ~117% (excluding bullion sales) in Q1’22, with revenue contribution of approx. 50%, 10% and 40% coming from April, May and June months respectively. Currently,the company’s ~90% of stores are opened in the jewellery segment. Other businesses are also showing recovery.
The company is targeting to gain market share in the Jewellery segment due to strong focus on wedding segment, huge scope for store expansion (40-50 stores every year), and gold harvest & gold exchange schemes. Further, the shift from unorganized (currently 70%) to organized (currently 30%) in the Jewellery segment will benefit branded players like Titan due to strong brand positioning and superior quality. Thus, we are positive on stock.
Fitch cuts India growth forecast to 10%
Fitch Ratings on Wednesday cut India's growth forecast to 10 percent for the current fiscal, from 12.8 percent estimated earlier, due to slowing recovery post second wave of COVID-19, and said rapid vaccination could support a sustainable revival in business and consumer confidence.
Gold Updates:
Gold prices edged higher on Wednesday and were on course for a sixth straight session of gains, driven by a dip in U.S. Treasury yields ahead of minutes from the Federal Reserve’s June meeting that could provide more clues on the policy stance.
Amarjeet Maurya - AVP - Mid Caps, Angel Broking:
Titan Company (TCL) recorded revenue growth of ~117% (excluding bullion sales) in Q1’22, with revenue contribution of approx. 50%, 10% and 40% coming from April, May and June months respectively. Currently,the company’s ~90% of stores are opened in the jewellery segment. Other businesses are also showing recovery.
The company is targeting to gain market share in the Jewellery segment due to strong focus on wedding segment, huge scope for store expansion (40-50 stores every year), and gold harvest & gold exchange schemes. Further, the shift from unorganized (currently 70%) to organized (currently 30%) in the Jewellery segment will benefit branded players like Titan due to strong brand positioning and superior quality. Thus, we are positive on stock.
Matrimony.com to acquire a 100% stake in ShaadiSaga
Matrimony.com has signed definitive agreements to acquire a 100% stake in Boatman Tech Private Limited, promoters of ShaadiSaga.com (a Delhi-based fast-growing online wedding services company) as approved by its board of directors. The transaction is subject to customary closing conditions and regulatory approvals, company said in its release.
Matrimony.com was quoting at Rs 1,050.55, up Rs 40.70, or 4.03 percent on the BSE.
Market at 3 PM
Benchmark indices were trading higher with Nifty around 15850 level.
The Sensex was up 96.49 points or 0.18% at 52957.67, and the Nifty was up 31.20 points or 0.20% at 15849.50. About 1574 shares have advanced, 1349 shares declined, and 113 shares are unchanged.
Nifty Metal index added 2 percent supported by the NALCO, SAIL, Tata Steel, JSW Steel
ICICI Securities on Sobha
As per Sobha’s business update, the company has achieved Q1FY22 gross sales bookings of 0.90msf worth Rs 6.8bn which were up 38% YoY in volume terms and 40% YoY in value terms driven by Bengaluru and Gurugram markets. While Q1FY21 was a washout with a complete lockdown across India, the improved Q1FY22 performance reflects ability of leading developers to utilise digital channels to drive sales.
Also, a partial lockdown during the second Covid wave in Q1FY22 has been less disruptive to operations with construction activities continuing across sites. While quarterly sales volumes may remain volatile depending on Covid induced lockdowns and pace of new launches, we retain our FY22/23E sales volume estimates of 4.7/5.0msf, respectively.
We retain our ADD rating with an unchanged SOTP based target price of Rs 540/share. Key risks to our call are a slowdown in residential demand and rise in the company’s debt levels.
Ujjivan Small Finance Bank Q1 gross loan book down 2% YoY and down 7 percent QoQ. Q1 total deposits up 24% YoY and up 4% QoQ.
Just in
:April 1 to July 6 gross direct tax revenue at Rs 2.9 lakh crore against Rs 1.98 lakh crore (YoY). April 1 to July 6 net direct tax revenue at Rs 2.5 lakh crore against Rs 1.3 lakh crore (YoY).
Tapan Patel- Senior Analyst (Commodities), HDFC Securities
: Crude oil prices traded higher with benchmark NYMEX WTI crude oil prices rose by nearly 1% to $74.07 per barrel for the day. MCX Crude oil July futures were trading over half a percent up at Rs 5531 by noon.
Crude oil prices are expected to trade up for the day with resistance at $76 and support at $73 per barrel. MCX Crude oil July has support at Rs 5470 and resistance at Rs 5590.
European markets are trading in the green with FTSE, CAC and DAX up half a percent each
Market update at 2 PM:
Sensex is up 107.13 points or 0.20% at 52968.31, and the Nifty added 28.80 points or 0.18% at 15847.10. Tata Steel and Gland Pharma are the top gainers while Titan Company and ONGC are the top losers.
Among the sectors, the metal index added a percent while the midcap and smallcap indices are also trading in the green.
Redington India Board approves bonus of 1 equity share for every one held:
The Board of Directors have considered, approved and recommended a bonus issue of one equity share of Rs 2 each fully paid up for every one equity share of Rs 2 each held as on the record date decided for this purpose. The record date for reckoning the eligible shareholders entitled to be allotted bonus shares has been fixed as August 20, 2021. The stock was trading at Rs 327.95, up Rs 21.90, or 7.16 percent. It has touched a 52-week high of Rs 330.
Gaurav Garg, Head of Research, CapitalVia Global Research:
In morning trades, Indian equities indexes remained unchanged, despite negative global indications. Traders were wary after a private report claimed that monsoon rainfall in India has turned the deficit for the first time this year, following a robust start to the season in June, with 30 percent of the country experiencing inadequate rainfall since the season began.
Another concern was the Goods and Services Tax (GST) collection fell below Rs 1 lakh crore for the first time in eight months in June, causing some alarm. US markets gave mixed reaction as the Dow and S&P 500 both dipped on Tuesday, with financials and other sectors connected to economic growth leading the way lower, while the Nasdaq climbed to a new high. Asian markets also traded with mixed sentiments following the global trends.
We witnessed a lackluster movement in the market in a small range between 15800-15850. 15800 will be a key support level in the market for a short-term perspective. On the sectoral front there is no clear momentum in any direction. Bajaj Finserv and Asian Paints are the top gainers while ONGC and Titan are the top losers on Nifty.
Equitas Small Finance Bank Q1 Update:
Equitas Small Finance Bank has reported 14.55 percent YoY jump in its Q1FY22 gross advances at Rs 17,839 crore against Rs 15,573 crore.
Equitas Small Finance Bank was quoting at Rs 60.80, up Rs 2.20, or 3.75 percent on the BSE.
Natco Pharma slips 5% after High Court order
The Hon'ble High Court of Delhi has today orally pronounced judgment in the interim injunction application filed by FMC Corporation on CTPR. The Hon'ble Court said that it has allowed the application of FMC Corporation, Natco Pharma said in the release.
The full copy of the Judgment is yet to become available. Natco will review all its options after the full Judgment becomes available to it, company added.
Natco Pharma was quoting at Rs 1,105.50, down Rs 59.35, or 5.10 percent on the BSE.
IndusInd Bank partners with TPCODL to launch digital payment network
Induslnd Bank has announced that it has partnered with TP Central Odisha Distribution limited (TPCODL) - a joint venture between Tata Power and Government of Odisha to introduce a fully digital network for facilitating electricity bill payments across 300 semi-urban and rural regions in the state.
IndusInd Bank was quoting at Rs 1,043.70, up Rs 13.70, or 1.33 percent.
Yash Gupta Equity Research Associate, Angel Broking:
Sobha Limited reported overall pre-sales growth of 40% YoY. The company reported pre-sales of Rs 682.9 Crores as against Rs 487.7 crores in Q1FY21. Total average price realization at Rs 7626 per square feet was up by 1.7% as against Rs 7498 per square feet in Q1FY21 on account of price hikes taken by the company in FY21.
The company has reported total sales of 0.89 MSF, up by 37.7%, as against 0.65 MSF in Q1FY21. Gururgram has performed exceptionally well for the company this quarter, with sales up by 119% YoY, while Chennai and Coimbatore reported a drop in sales. Overall, the company reported a good set of numbers in Q1FY22 but was not able to achieve the 1msf quarterly sales target due to state-wise lockdown in various cities. We expect the company to perform well in Q2FY22 with easing of lockdown by various states. We have a neutral view on Sobha.
Indian IT industry revenues will see double-digit growth in FY22: Azim Premji
Wipro founder-chairman Azim Premji believes the Indian IT industry revenues will grow in double digits in the current financial year.
Throughout the pandemic, which saw lockdown measures to curtail the spread of the virus, the information technology industry has kept the world running and has also adapted to the changes, Premji said, speaking at an event of the Bombay Chartered Accountants' Society on Tuesday evening.
Market at 1 PM
Indian benchmark indices were trading in the green with Nifty holding above 15800 amid volatility.
At 13:01 IST, the Sensex was up 16.04 points or 0.03% at 52877.22, and the Nifty was down 0.10 points or 0.00% at 15818.20. About 1533 shares have advanced, 1332 shares declined, and 122 shares are unchanged.
Gland Pharma, Bajaj Finserv, IndusInd Bank, UPL and Shree Cements were among major gainers on the Nifty, while losers were ONGC, Titan Company, Grasim, Tata Consumer Products and M&M.
ONGC share price slips 2%; Morgan Stanley retains underweight call
Oil and Natural Gas Corporation (ONGC) share price was trading lower by over 2 percent on July 7 after Morgan Stanley retained its underweight stance on the stock.
The global research firm has retained its underweight call but has raised the target to Rs 126 per share. The brokerage firm has raised FY22 and FY23 EPS estimates by 23 percent and 31 percent. ONGC is its least preferred stock, the firm added.
"ONGC lacks volume growth and is monetising reserves slowly. The company has limited clarity on decarbonisation plans with higher oil and potentially gas prices which acts as tailwinds," the brokerage firm said.
Morgan Stanley prefers GAIL India and refiners to play the upside.
GR Infraprojects IPO subscribed 36% on day 1:
The public offer of road EPC company GR Infraprojects has been subscribed 36 percent so far on July 7, the first day of bidding. Investors have put in bids for 29.19 lakh equity shares against offer size of 81.23 lakh shares.
Retail investors are at the forefront, putting in bids for 73 percent of their reserved portion, the subscription data available on exchanges showed.
The portion set aside for non-institutional investors has subscribed 2 percent and that of employees 1 percent, while qualified institutional buyers are yet to put in bids.
Subscribe Clean Science and Technology: Motilal Oswal Financial Services
We like Clean Science and Technology given its global leadership in green chemicals, diversified product portfolio, robust financials with industry leading margins/return ratios and strong focus on ESG front. It is well placed to tap opportunity in the fast growing specialty chemical space especially green chemicals, by leveraging its strong R&D capabilities and expanding product portfolio.
The issue is reasonably valued at 48.2x FY21 P/E on post issue basis (avg. peer FY21 P/E of 60x), while it enjoys higher RoE of 45% (avg. peer RoE of 18%). We believe that the market would like to give premium valuation to such emerging niche stories. We recommend subscribe.
Relief measures underscore Indian Banks’ challenges despite improved FY21 performance: Fitch Ratings
Indian banks' improved performance for the financial year ended March 2021 (FY21) is in contrast to the stress evident from the extension of Covid-19 related relief measures to borrowers, says Fitch Ratings in a new report.
Private banks' considerably better performance than state banks has positively influenced banking system aggregates in addition to deferred recognition of stressed assets that has masked the stress.
Market at 12 PM
Benchmark indices were trading with marginal gains amid volatility with Nifty holding above 15800.
The Sensex was up 97.88 points or 0.19% at 52959.06, and the Nifty was up 23.60 points or 0.15% at 15841.90. About 1517 shares have advanced, 1315 shares declined, and 119 shares are unchanged.
Gland Pharma, Bajaj Finserv, JSW Steel, UPL and Asian Paints were among major gainers on the Nifty, while losers were ONGC, Titan Company, Grasim, UltraTech Cement and M&M.
Tata Motors conference call with senior management of Tata Motors and Jaguar Land Rover on July 7:
The conference call with the senior management of Tata Motors and Jaguar Land Rover to update on press release yesterday on JLR Q1FY22 sales volumes and the semiconductor supply situation will start from 5:30 PM (India time) on 7th July 2021, company said in its release.
Tata Motors was quoting at Rs 316.85, down Rs 0.10, or 0.03 percent.
Rupee Updates:
Indian rupee is trading lower by 21 paise at 74.76 per dollar, amid volatile trade seen in the domestic equity market.It openedmarginally lowerat 74.60 per dollar against Tuesday's close of 74.55.
Buzzing
The share price of real estate firm Sobha jumped 9 percent on July 7 after the company announced the operational numbers for the first quarter of the current fiscal.
The company achieved a total sales volume of 8,95,539 square feet of super built-up area valued at Rs 682.9 crore in Q1 FY22, against 6,50,400 square feet of super built-up area worth Rs 487.7 crore sold in Q1 FY21.
Spurt in outsourcing, digital deals to drive IT rebound: CRISIL
The USD 100 billion information technology (IT) services sector will stage a strong recovery this fiscal, with revenue growth of 10-11%. The improvement will ride on increasing outsourcing and accelerating digital transformation services, accentuated by the pandemic, mainly in sectors such as banking, financial services and insurance (BFSI), healthcare, retail and manufacturing.
ISGEC Heavy Engineering JV bags order for critical reactors for the US
Isgec Hitachi Zosen Limited received order for supply of four reactors of Vanadium Modified Low Alloy Steel, for a renewable energy project in USA. The scope of work includes mechanical design, material procurement, fabrication, testing, and supply of equipment. This is the first order for Isgec Hitachi Zosen Ltd., India (a joint venture of Isgec Heavy Engineering Ltd., India and Hitachi Zosen Corporation, Japan) for supplying such reactors to USA. The stock was trading at Rs 852, up Rs 20, or 2.40 percent.
Prabhudas Lilladher on Wipro:
We are upgrading the company's multiple to 25X given new management’s aggressive yet sharp focus towards growth can potentially lift up and sustain revenue growth trajectory over medium term and maintain EBIT margins between ~18-19 percent. We forecast Wipro’s IT services organic growth of 15.5 percent and USD 587 million revenue from Capco resulting in consolidated revenue growth of 22.4 percent in FY22.
We assign buy rating and value Wipro on 25X FY-23 EPS of Rs 25.5 to arrive at target of Rs 637. Wipro is currently trading at 24/21 for FY22/23E earnings of Rs 22/25 respectively with EPS CAGR of 16 percent for FY21-23 respectively.
Clean Science and Technology IPO subscribed 21% on first day
The initial public offering of specialty chemical company Clean Science and Technology has subscribed 21 percent on July 7, the first day of bidding. The offer has received bids for 25.86 lakh equity shares against IPO size of 1.23 crore equity shares, the subscription data available on the exchanges showed.
The reserved portion of non-institutional investors has subscribed 1 percent and that of retail investors 42 percent, while qualified institutional buyers have not put in any bid so far.
Market update at 11 AM
: Sensex is down 20.52 points or 0.04% at 52840.66, and the Nifty shed 14.50 points or 0.09% at 15803.80. Bajaj Finserv, ITC and Asian Paints are the top gainers while Tata Motors, Bajaj Finance and Reliance Industries are the most active stocks.
Among the sectors, metal and auto indices are down half a percent each while realty stocks have edged higher.
BSE Oil & Gas index shed 1 percent dragged by the Adani Total Gas, ONGC, HPCL
ICICI Direct
The rupee has been trading in a range for the past two sessions. Looking at the Call OI position in ATM and OTM strikes we feel upsides seem capped as of now and the rupee can slide towards 74.5 levels.
The dollar-rupee July contract on the NSE was at Rs 74.70 in the last session. The open interest fell 3.2% for the July series.
Bharat Forge share price hits 52-week high
Bharat Forge share price gained 3 percent in the morning session on July 7. The stock price has jumped over 100 percent in the last year. It has touched a 52-week high of Rs 808.05.
Global research firm Goldman Sachs has initiated a buy call on the stock with a target of Rs 883 per share, an upside of 11 percent from the current levels. It is of the view that the company is well-positioned to leverage defence localisation and global industrial recovery, according to a CNBC-TV18 report.
GR Infraprojects IPO opens today for subscription
The Rs 962-crore initial public offering of the road sector engineering, procurement and construction company opened for subscription on July 7. It is a complete offer for sale by existing shareholders and the promoters’ stake will be reduced to 86.5 percent after the issue.
The offer closes on July 9. The price band has been set at Rs 828-837 per share. Click to read more
