Vinod Nair, Head of Research at Geojit Financial Services:
Markets continued their volatile movements and ended the day negative, tracking mixed global cues. Global stocks were mixed following record infections in the US, which led to worries of delayed global economic recovery, while Indian markets worried about record cases of infections and increasing localized lockdowns. However, on a weekly basis, the benchmark indices gained around 1.5%. The weekly gains were mainly driven by liquidity and the hope that the virus would be contained soon and businesses back to normal.
However, the outlook for the market is volatile as the earnings announcements have begun after a washout quarter for most industries. This uncertainty combined with profit booking happening after the recent rally, means that the volatility is expected to continue in the markets and investors would do well to be cautious and stock specific in this market.
Market Close:
Benchmark indices ended lower with Nifty below 10800 on July 10 tracking weak global market.
At close, the Sensex was down 143.36 points or 0.39% at 36594.33, and the Nifty was down 45.50 points or 0.42% at 10768. About 989 shares have advanced, 1646 shares declined, and 159 shares are unchanged.
IndusInd Bank, Axis Bank, GAIL, Titan Company and HDFC were among major losers on the Nifty, while gainers were Reliance Industries, Sun Pharma, HUL, Britannia Industries and Bharti Airtel.
Mixed trend witnessed on the sectoral front with pharma, energy and FMCG sectors ended higher, while bank, metal and auto remained under pressure.
SBI board meet on July 15
A meeting of the Central Board of the bank is scheduled to be held on July 15 to seek approval for raising of Additional Tier 1 (AT 1) and Tier 2 Capital by way of issuance of Basel III compliant debt instrument in USD and/or INR during FY21.
Bank Of Baroda revises MCLR:
Sanjeev Zarbade, VP PCG Research, Kotak Securities:
The BSE-30 Index gained 1.4% in the current week. Market mood remained buoyant, despite continuous increase in Covid-19 cases and high frequency indicators signaling mixed signs of recovery. IndusInd Bank, Bajaj Finance and SBI were among the top gainers while ITC, NTPC and Power Grid were among the major losers in the BSE-30 Index.
FPIs sold equities worth USD 261 million over the past five trading sessions while DIIs sold USD 106 million worth of equities in the same period.
We are now beginning to see some fatigue coming into the market as reflected by the selling by FPIs and DIIs. Also, the ongoing earnings season will be one of the most weak ones in many years. In view of this, for short term investors, it makes sense to remain cautious.
Karnataka Bank Q1 results
Karnataka Bank has posted 12 percent YoY jump in its Q1 net profit at Rs 196.4 crore versus Rs 175.4 crore and NII was up 8.2% at Rs 535.1 crore versus Rs 494.6 crore.
Its gross NPA was at 4.64% versus 4.82% and net NPA was at 3.01% versus 3.08% (QoQ), reported CNBC-TV18.
Radhakishan Damani buys stake in Astra Micro:
Ace investor and the owner of supermarkets chain D-Mart Radhakishan Damani bought 1.03 percent stake in defence sector player Astra Microwave Products in the June quarter of the financial year 2021.
In a BSE release on July 10, Astra Microwave said Damani bought 8,96,387 shares of the company during the June quarter.
M&M Financial board meet on July 18
Company board on July 18, 2020, shall consider, discuss and decide the terms and conditions and other related matters in connection with the rights issue such as rights issue price and related payment mechanism, rights entitlement ratio, record date, timing of the rights issue.
Unichem Lab gets USFDA nod
Unichem Laboratories has received ANDA approval for its Baclofen Tablets, USP, 10 mg and 20 mg from the United States Food and Drug Administration (USFDA) to market a generic version of LIORESAL (Baclofen) Tablets, 10 mg and 20 mg of Novartis Pharmaceuticals Corp.
Canara Bank to raise capital
Canara Bank at its meeting held on 10.07.2020 has decided to raise equity share capital amounting up to Rs 5000 crore (including premium) by way of Qualified Institutional Placements (QIP)/Rights Issue/ESPS/Private Placement/ Preferential Allotment/any other approved means during the Financial Year (FY) 2020-21 subject to market conditions and necessary approvals.
Board also approved to raise capital through Additional Tier I Basel III Compliant Bonds to the extent of Rs 3000 crore during the FY 2020-21 subject to market conditions and necessary approvals.
Tejas Networks at upper circuit
Tejas Networks share price surged 5 percent on July 10, hitting the upper circuit for the third consecutive session.
The share price rose a day after Kedia Securities, owned by investor and trader Vijay Kedia, acquired a 0.81 percent stake in the company for Rs 3.7 crore through open market transactions.
Kedia Securities bought 7,53,925 equity shares in Tejas at Rs 49.13 per share, bulk deals data available on the National Stock Exchange showed.
Nifty Bank Index shed 2 percent dragged by the PNB, RBL Bank, IDFC First Bank:
Rupee ends
Indian rupee ended lower on July 10 at 75.20 per dollar, amid selling seen in the domestic equity market.It opened 15 paise lower at 75.14 per dollar versus Thursday close of 74.99 and traded in the range of 75.14-75.32.
Union Bank of India cuts lending rates by 20 bps across all tenors effective July 11. One year MCLR now stands at 7.4 percent, down from 7.6 percent.
Buzzing Stock
Ace investor and the owner of supermarkets chain D-Mart Radhakishan Damani bought 1.03 percent stake in defence sector player Astra Microwave Products in the June quarter of the financial year 2021. In a BSE release on July 10, Astra Microwave said Damani bought 8,96,387 shares of the company during the June quarter.
Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services
: We saw a rise in USD/INR spot. The spot respected the crucial support of 74.50 and bounced towards 75.30 zone mainly on coronavirus concerns and RBI intervention. Also, the fear that renewed lockdown may derail economic recovery all over the world, led traders seek shelter of gold, which is a safe-haven asset.
MCX Gold hit al time high of Rs 49,348, however some profit-booking is seen. Going ahead, we expect the caution surrounding the impact and duration of virus may keep all riskier assets on an edge, including rupee. We see USD/INR trading in between 74.75-75.75. Only heavy inflows may cap the upside in USD/INR spot. While, in gold the recent high of Rs 49,348 will act as a crucial resistance, unless the level is broken, we may see some fall in gold prices until Rs 47,500. However, if prices continue to trade above Rs 49,500 then only we can expect a rally towards Rs 50,000.
Manoj Jain, Director (Head - Commodity & Currency Research) at Prithvi Finmart Pvt Ltd:
Unemployment in the US is still at very high levels and increasing coronavirus cases could support both the precious metals at lower levels. India gold has crucial support at $1,772 per troy ounce/INR 48,330 on a closing basis.
If prices sustain above Rs 48,800, then it could retest $1,814-1,828 per troy ounce/INR 49050-49300 levels,” he said. “Silver is also having crucial support at $18.70 per troy ounce /Rs 50,500 on a closing basis and expected to hold,” said Jain.If silver sustains above $19 /Rs 51,220 then it could retest $19.20-19.44 per troy ounce /Rs 51,700-52,100 levels.
PPOP Could Fall 15% for Private Banks in FY21: India Ratings
India Ratings and Research (Ind-Ra) opines the operating buffers (pre-provisioning operating profit – PPOP) of the top five private sector banks by advances size, constituting 25% of overall banking and 75% of private bank space, could decline by up to 15% yoy in FY21 (FY20: PPOP/average advances: 4.9%). This would decrease the ability of banks to withstand credit costs without capital erosion.
ICRA reaffirms rating of Puravankara
ICRA has reaffirmed the previous rating and assigned a long-term rating of [ICRA] BBB+ and outlook has been revised to Stable from Positive and has maintained the previous short-term rating of [ICRA] A2 for Rs 3,000 crore bank facilities of Puravankara.
European Markets trade lower:
Tata Motors Group global wholesales dip 64%
The Tata Motors Group global wholesales in Q1FY21, including Jaguar Land Rover, were at 91,594, lower by 64%, as compared to Q1FY20.
Global wholesales of all Tata Motors’ commercial vehicles and Tata Daewoo range in Q1FY21 were at 11,598, lower by 89%, over Q1FY20.
Yes Bank approves FPO price band
Capital Raising Committee (CRC) of the Board of Directors of the Yes Bank at its meeting held on July 10, 2020 has approved the floor price at Rs 12 per equity share and Cap price at RS 13 per equity share for its FPO.
A discount of Re 1 per equity share for the eligible employees of the bank bidding in employee reservation portion. A minimum bid lot is of 1,000 equity shares and in the multiples of 1,000 equity shares thereafter.
A meeting of the CRC is scheduled to be held on July 14, 2020 for the purposes of allocation of equity shares to the successful anchor investors pursuant to the offer and for determination of the anchor investor allocation price.
Sriram Iyer, Senior Research Analyst at Reliance securities:
International bullion spot moved lower and consolidated on July 9 after hitting a fresh eight-year high on the previous day. The dollar rebounded on July 9 which generated some mild headwinds for gold prices.
Domestic bullion started flat on July 10, tracking a slightly weak start in the international markets. Technically, the MCX August gold contract made a high of 49,312 where it failed to cross its all-time high level of 49348, moreover, it gave a sharp fall up to 48,756 levels, indicating some exhaustion of prices at this levels.Resistance holds at Rs 49,050-49,230 level and support is at Rs 48,600-48450 levels.
Msearch recommends subscribe to Rossari Biotech
Msearch is optimistic on the sector based on industry data which says Chinese export of specialty chemicals is over seven-fold of Indian exports, implying a robust multiyear export opportunity as well local demand to support for Indian specialty chemical industry in the current environment. While rising "Make in India" campaign would also add impetus to the emergence of India as a manufacturing hub for the specialty chemicals industry.
It believe Rossari biotech is well positioned to tap the shifting global demand by having customized solutions to the apparel, animal & poultry feed and FMCG industries by offering a diversified product portfolio.
Considering all the factors it recommend high risk investors can “Subscribe” taking into consideration risk appetite of volatile equity markets ahead of COVID-19 spread while moderate to low risk investors can give a miss to the offer.
At 12:01 IST, the Sensexwas down 215.45 points or 0.59% at 36522.24, and the Nifty was down 66.30 points or 0.61% at 10747.20.
Natco Pharma signs settlement agreement with Celgene
Natco Pharma (Canada) Inc., Canada, a subsidiary of Natco Pharma has entered into a settlement agreement with Celgene (now part of Bristol-Myers Squibb) for the product Lenalidomide Capsules in Canada.
Asian Markets trade lower
Asian shares and US stock futures fell on Friday as record-breaking new coronavirus cases in several U.S. states stoked concern about economic recovery, while investors looked forward to earnings season.
BSE Metal Index fell 1.5 percent dragged by the SAIL, Hindalco, JSW Steel:
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking:
For the near term, support for Nifty is placed around 10670 whereas resistances are seen around 10900 and 11000. A move beyond the above mentioned boundaries would then lead to the next leg of trended move and till then, traders are advised to continue to trade with a stock specific approach.
Rupee at day's low
Indian rupeeextended the early losses and trading at day's low level at 75.23 per dollar, amid selling seen in the domestic equity market.It opened 15 paise lower at 75.14 per dollar versus Thursday close of 74.99.
Buzzing
Shares of Firstsource Solutions jumped over 10 percent in trade on Friday after ace-investor Rakesh Jhujhnwala raised his stake in the company.
As per a BSE filing by Firstsource Solutions, Jhunjhunwala bought an additional 57 lakh shares in the company during the quarter ended June 30, taking the total number of shares to 2 crore, against 1.43 crore help at the end of March 31, 2020.
Mutual funds raised their stake to 5,40,26,995 shares in the June quarter of FY21 against 5,17,59,635 shares in the March quarter of FY20.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
: Nifty Index continues to remain in the range - we must cross 10,850 for a breakout on the upside. Post that we can move closer to the 11,000 mark. The support for Nifty also continues to remain at 10,650. It is a time of patience and one must wait for either side to be taken out. I would urge traders not to jump in as a range bound movement can trigger stops on the long and short side.
Most active stocks on NSE in terms of volumes
ED attaches Rs 2,400 crore worth properties of Rana Kapoor, Kapil & Dheeraj Wadhawan
The Enforcement Directorate (ED) has attached properties worth Rs 2,400 crore in the Yes Bank case.
The Rs 2,400 crore includes Rs 1,000 crore worth properties in Mumbai, London and New York owned by Rana Kapoor and his family. Mumbai properties include a Peddar Road bungalow and 40, Amrit Shergill property which he had purchased from Gautam Thapar, former chairman of Crompton Greaves group.
The remaining properties worth Rs 1,400 crore at Mumbai, Pune, London and Australia belong to Dewan Housing Finance Corporation (DHFL) promoters Kapil Wadhawan and Dheeraj Wadhawan.
VIP Industries to raise Rs 100 crore:
Company board approved the issue of principal protected, secured, rated, listed, redeemable, non-convertible, market-linked debentures (NCD) on private placement basis in one or more tranches/ series/ types aggregating upto Rs 100 crore.
Nifty Pharma added over a percent led by Sun Pharma, Biocon, Aurobindo Pharma and Dr Reddy's Labs.
Rupee opens
Indian rupee slipped in the early trade on July 10. It opened 15 paise lower at 75.14 per dollar versus Thursday close of 74.99.
Gujarat Ambuja to consider stock split
Gujarat Ambuja Exports share price rose 5 percent on July 10 as company board meeting is scheduled to be held on July 25, 2020 to consider and approve the unaudited financial results of the company for the first quarter ended 30th June, 2020.
The board also consider the proposal for sub-division of equity share of the company of face value of Rs 2 each into 2 equity shares of face value of Re 1 each.
Board will consider proposal for alteration in the capital clause of Memorandum of Association for giving effect to the split of equity shares of the company and other businesses.
Gold Updates
Gold was set for a fifth straight weekly gain as the COVID-19 pandemic showed no signs of abating, keeping the safe-haven metal above the key USD 1,800 level on Friday.
Gainers and Losers on the BSE Sensex:
Macquarie on ICICI Bank:
Macquarie is of the view that the bank's large capital raising would further strengthen its balance sheet adding that large capital raising does not necessarily indicate any asset quality issues, according to a report by CNBC-TV18.
The brokerage house feels that the bank is better placed on NPL coverage ratios and larger retail loan book adding that raising of Rs 15,000 crore will increase FY21/FY22 book values by 5.7/4.7 percent.
Market Opens:
Indian indices opened lower on July 10 with Nifty slipped below 10800.
At 09:16 IST, the Sensex was down 134.12 points or 0.37% at 36603.57, and the Nifty was down 38.30 points or 0.35% at 10775.20. About 403 shares have advanced, 601 shares declined, and 48 shares are unchanged.
Fitch affirms Glenmark's rating:
Fitch Ratings has affirmed India-based Glenmark Pharmaceuticals' Long-Term Issuer Default Rating (IDR) at 'BB'. The Outlook is Stable.
The agency has also affirmed Glenmark's USD 200 million 4.50% senior unsecured notes due 2021 at 'BB'. The notes are rated at the same level as the IDR because they constitute Glenmark's direct and senior unsecured obligations.
At the same time, Fitch has withdrawn the rating on Glenmark's proposed US-dollar bonds assigned in January 2020 as the company chose not to proceed with the offering.
Market at pre-open:
Benchmark indices are trading negative in the pre-opening session.
At 09:02 IST, the Sensex was down 124.97 points or 0.34% at 36612.72, and the Nifty was down 60.00 points or 0.55% at 10753.50.
