Vinod Nair, Head of Research at Geojit Financial Services
Progressive economic data indicates a strong rebound from the impact of the second wave of COVID-19. All major domestic data like PMI index, GST collection, corporate earnings, export data, etc., favour a strong recovery. This has added euphoria in the domestic market reaching new highs along with context to a drop in global risk after the accommodative monetary & fiscal policy announcements. A similar monetary policy is expected from the RBI this week.
Gaurav Udani, CEO & Founder, ThincRedBlu Securities
Nifty made a strong bullish bar today. It opened at 15,951 and closed with 246 points in positive. Nifty managed to cross all its resistance and closed at 16,130.75. Volumes on Nifty were higher than average which indicates strength. We can expect nifty to touch 16,250 and 16,400 in the coming days. On the lower side, 15,950 and 15,880 will act as strong support.
Closing updates:
Healthy buying in most sectors pushed domestic equities to record high levels in the intraday trade on August 3.
The Sensex hit its fresh all-time high of 53,887.98, while the Nifty made a fresh peak of 16,146.90 in intraday trade.
In sync with the benchmarks, the BSE midcap and smallcap indices also scaled record highs of 23,443 and 27,232, respectively.
Eventually, Sensex closed with a gain of 873 points, or 1.65 percent at 53,823.36 while the Nifty finished at 16,130.75, up 246 points, or 1.55 percent.
BSE Midcap index closed at 23,374, up 0.19 percent while the smallcap index settled with a gain of 0.23 percent at 27,134.
Only 3 stocks in the red in the 30-share pack Sensex
More than 500 stocks hit their upper circuits:
More than 500 stocks, including Jain Irrigation Systems, Trident, Suzlon Energy, Nahar Polyfilms, Nureca, Rushil Decor, PG Electroplast, Ansal Properties, Intense Technologies and Mindteck, hit their upper circuits in intraday trade on BSE.
More than 525 stocks hit 52-week highs:
More than 525 stocks, including Infosys, State Bank of India, Sun Pharma, Titan, UltraTech Cement, ACC, Ambuja Cement, Dabur, Bata India, Divi's Labs, DLF, DMart, Godrej Agrovet, Godrej Consumer, Godrej Properties, Jubilant FoodWorks, Nocil, Wipro and Torrent Pharma, hit their fresh 52-week highs on BSE in intraday trade on August 3.
Gaurav Garg, Head of Research, CapitalVia Global Research
Indian market sentiment remained positive with the GST collection increasing and the manufacturing sector gaining a boost and posting the strongest rate of growth in the month of July amid the easing of COVID-related restrictions.
We have witnessed the breach of 15,950 level and sustaining above 15,950, we expect the market to gain momentum, leading to an upside projection till 16,100-16,150 levels.
Technical indicators also support positivity in the market. Higher earnings by companies in the global market is another factor that is adding positive sentiment to the market.
Adani Ports Q1
Net profit at Rs 1,341.7 crore against CNBC-TV18 Poll of Rs 1,297 crore. Revenue at Rs 4,556.8 crore against CNBC-TV18 Poll of Rs 3,802 crore.Cargo volume guidance revised to 350-360 mmt from 310-320 mmt.
Indo Count Industries Q1:
Net profit at Rs 117.4 crore against Rs 18 crore (YoY). Revenue at Rs 714 crore against Rs 331.8 crore (YoY). EBITDA at Rs 132.5 crore against Rs 34.8 crore (YoY). EBITDA margin at 18.6 percent against 10.5 percent (YoY).
Nitin Spinners Q1:
Net profit at Rs 60 crore against loss of Rs 9.2 crore (YoY). Revenue at Rs 553.6 crore against Rs 219.1 crore (YoY). EBITDA at Rs 128.5 crore against Rs 23.5 crore (YoY). EBITDA margin at 23.2 percent against 10.7 percent (YoY).
European markets are trading in the green with FTSE and CAC up half a percent each
Dabur India Q1:
Net profit was up 28.4 percent at Rs 438.3 crore against Rs 341.3 crore (YoY). Revenue rose 31.9 percent at Rs 2,611.5 crore against Rs 1,980 crore (YoY). EBITDA was up 32.5 percent at Rs 552 crore against Rs 416.5 crore (YoY) while EBITDA margin stood at 21.1 percent against 21 percent (YoY).
Market update at 2 PM:
Sensex is up 580.12 points or 1.10% at 53530.75, and the Nifty jumped 156.20 points or 0.98% at 16041.40. HDFC, Titan COmpany and IndusInd Bank are the top gainers while HDFC, SBI and Sun Pharma are the most active stocks.
Godrej Properties Q1
Net profit at Rs 17 crore against loss of Rs 19.4 crore (YoY). Revenue was up 19.2 percent at Rs 86.2 crore against Rs 72.3 crore (YoY). EBITDA loss at Rs 63.5 crore against loss of Rs 53.6 crore (YoY). Other income at Rs 175.8 crore against Rs 123.4 crore (YoY).
Barbeque Nation Q1:
Net loss at Rs 43.9 crore against loss of Rs 60.5 crore (YoY). Revenue at Rs 102 crore against Rs 9.8 crore (YoY). EBITDA loss at Rs 17.8 crore against loss of Rs 36.1 crore (YoY).
Shanti Ekambaram, Group President – Consumer Banking, Kotak Mahindra Bank
: While the expectation is for a status quo policy, in terms of interest rates and stance, what will be important to gauge is the Monetary Policy Committee’s assessment on the economy and hence, the path forward from here on. Among a host of factors, it is the durability and sustainability of India’s growth curve, in addition to inflation, that will drive its decision making.
Market update:
Sensex is up 554.52 points or 1.05% at 53505.15, and the Nifty added 147.80 points or 0.93% at 16033. Titan COmpany, HDFC and Sun Pharma are the top gainers while HDFC, SBI and TCS are the most active stocks.
Emkay Global on HDFC:
HDFC Limited reported a PAT of Rs 3000 crore in Q1FY22, slightly lower than our estimate of Rs 3220 crore due to lower other income and relatively higher operating expenses. Advantage of lower cost of funds continued for the company with healthy spreads of ~229bps. NIMs stood at ~370bps.
We remain bullish on home loan demand due to low interest rates and various perks offered by the government. We trim FY22E/23E earnings by ~4%/~5% as we build in relatively higher provisions. We roll forward to September 2022 and revise the target to Rs 2,950 at ~2.5x P/Adj Book Sep'23E (standalone) and retain buy.
Kansai Nerolac Q1:
Net profit at Rs 114.1 crore against Rs 33.5 crore (YoY). Revenue at Rs 1,402.8 crore against Rs 638.9 crore (YoY). EBITDA at Rs 190.6 crore against Rs 76.7 crore (YoY).
CarTrade Tech IPO price band fixed at Rs 1,585-1,618
CarTrade Tech, the multi-channel auto platform, has fixed the price band at Rs 1,585-1,618 per share for its upcoming initial public offering. The offer will open for subscription on August 9 and will close on August 11.
The company will open its anchor book, if any, for a day on August 6, a day before issue opening.
The public issue of 1,85,32,216 equity shares is a complete offer for sale by existing selling shareholders. The offer size comes to Rs 2,998.51 crore.
Inox Leisure Q1 earnings:
The company has posted net loss at Rs 122.3 crore in the quarter ended June 2021 versus loss of Rs 73.6 crore in the year ago period.
Revenue was up at Rs 22.3 crore versus Rs 0.3 crore, YoY.
INOX Leisure was quoting at Rs 312.00, down Rs 10.75, or 3.33 percent on the BSE.
Indian Overseas Bank Q1:
The company reported net profit at Rs 326.6 crore versus Rs 120.7 crore and net interest income up 6 percent at Rs 1,496.6 crore versus Rs 1,412.3 crore, YoY.
Indian Overseas Bank was quoting at Rs 23.55, down Rs 0.50, or 2.08 percent on the BSE.
Glenmark Life Sciences IPO share allotment likely today:
Glenmark Life Sciences, a leading developer and manufacturer of high-value non-commoditised APIs, is expected to finalise the IPO share allotment today, August 3.
The Rs 1513.6 crore public issue of Glenmark Life Sciences received an overwhelming response from investors as it was subscribed 44.17 times during July 27-29. The portion set aside for qualified institutional investors saw a subscription of 36.97 times and that of non-institutional investors 122.54 times. The retail portion was booked 14.63 times.
More than 450 BSE stocks touched 52-week high today including Wipro, United Breweries, Tata Power: Click for More
Bharti Airtel share price rises ahead of June quarter results:
The telecom major is scheduled to come out with its June quarter earnings today which is expected to show COVID-related stress. Sequentially, the numbers may come on a softer side.
Brokerage firms are of the view that the company's Q1 scorecard may show signs of pressure with overall revenue and ARPU shrinking.
Apart from the numbers, investors will await any update on tariff hikes and the 5G rollout. The company's capex plans, if any, will also be keenly observed.
Bharti Airtel was quoting at Rs 578.55, up Rs 13.50, or 2.39 percent on the BSE.
IndusInd Bank gets empanelled as an agency bank to RBI:
IndusInd Bank announced, that it has been empanelled by the Reserve Bank of India (RBI) as an ‘Agency Bank’ to facilitate transactions related to Government businesses.
IndusInd Bank was quoting at Rs 1,006.50, up Rs 18.55, or 1.88 percent on the BSE.
BSE Midcap index erase gains, trade in the red:
Market at 12 PM
Benchmark indices extended the early gains with Nifty around 16,000.
The Sensex was up 425.07 points or 0.80% at 53375.70, and the Nifty wad up 111.90 points or 0.70% at 15997.10. About 1629 shares have advanced, 1275 shares declined, and 83 shares are unchanged.
Arun Agarwal, Deputy Vice President, Equity Research, Kotak Securities:
Automobile OEMs in the passenger vehicle and the commercial vehicle segment reported strong volume recovery in July 2021. While passenger vehicle growth benefited from pent-up demand, preference for personal mobility and low base, the commercial vehicle segment's sequential recovery was aided by reopening of the economy. In the two wheeler segment, domestic demand was sluggish, although export performance was strong. Tractor volumes were below expectations in July 2021 as slowdown in monsoon temporarily affected the sowing of Kharif crops.
Nifty pharma index rose 1 percent supported by the Sun Pharma, Lupin, Alkem Laboratories
Devyani international to open IPO for subscription on August 4:
KFC, Pizza Hut and Costa Coffee operator Devyani international will open its initial public offering for subscription on August 4. Click to know 10 key things before subscribing public issue:
Rupee Updates:
Indian rupee is trading flat at 74.32 per dollar, amid buying seen in the domestic equity market.It opened flat at 74.26 per dollar versus previous close of 74.34.
HDFC share price gains post June quarter results:
Housing Development Finance Corporation (HDFC) share price was up over a percent at open on August 3, a day after the company declared its June quarter results.
HDFC on August 2 posted a 1.7 percent fall in its Q1FY22 standalone net profit at Rs 3,000.7 crore. The company had posted a profit of Rs 3,051.5 crore in the year-ago period.
The profit number was above the market estimates, as a CNBC-TV18 poll of analysts had expected Q1 profit at Rs 2,898.7 crore. Total revenue from operations for the quarter came at Rs 11,657.47 crore, down 10.45 percent from Rs 13,017.68 of Q1FY21.
Anand Rathi on Devyani International IPO:
At the upper end of the IPO price band, Devyani International Ltd. is offered at 9.5x market capitalization / sales as per FY21 financial statement, compared to peers like Jubilant Foodworks Ltd. (15x), Westlife Development Ltd. (8.8x), Burger King India Ltd. (14x). We believe the company remains well placed for long term growth considering the company’s portfolio of recognized global brands catering to a range of customer preferences, cross brand synergies, expansion of store network and EBITDA positive earnings. We give this IPO a "Subscribe" rating.
Market update at 11 AM
Sensex is up 372.10 points or 0.70% at 53322.73, and the Nifty added 92.20 points or 0.58% at 15977.40. Titan Company, Bharti Airtel and Sun Pharma are the top gainers while TCS, Titan and State Bank of India are the most active stocks.
Tejas Networks share price at record high:
Tejas Networks share price spiked 5 percent, hitting upper circuit on BSE on August 3, a day after Tata Sons' subsidiary Panatone Finvest picked up an 8 percent stake as part of the Tata group's plan to acquire a controlling stake in the domestic telecom equipment maker.
Anand James, Chief Market Strategist at Geojit Financial Services:
The hanging man formed yesterday signals a bearish reversal, but prior days having registered flat closes, we remain positive on seeing 16350 soon. However, as maintained yesterday, 15900/920/970 regions will continue to be points of caution. Failure to breach the same could initiate a three-step consolidation process aiming at 15669, wherein positivity will linger on while inside the 15840-810 region, a neutral bias while inside 15810-15767, and volatility while inside 15767-669. Our breakout points for the day, hence, are 15970 and 15669.
Nifty Metal index slipped 1 percent dragged by the JSW Steel, Jindal Steel, Vedanta
Marwadi Shares and Finance view on Exxaro Tiles IPO:
Considering the FY-21 adjusted EPS of Rs 3.40 on post-issue basis, the company is going to list at a P/E of 35.27 with a market cap of Rs 5,369 mn, while its peers namely Kajaria Ceramics, Asian Granito and Somany Ceramics are trading at a P/E of 51.37, 10.55 and 43.15 respectively.
We assign a “Subscribe (With Caution)” rating to this IPO as the company has wide product portfolio of tiles with high scope of growth in this segment and is available at a reasonable valuation. However, higher working capital requirement with volatile cashflows keeps us cautious at the same time from a longer-term perspective.
BSE Smallcap index touched fresh record high supported by the Thangamayil Jewellery, Steel Strips Wheels, Fairchem Organics
RBL Bank share price falls 2% post June quarter earnings:
RBL Bank share price fell 2 percent on August 3 after the company declared its June quarter earnings.
On August 2, the company reported a loss of Rs 459.47 crore for the June quarter as against a profit of Rs 141 crore in the year-ago period as the money set aside for future loan setbacks shot up by nearly three-times.
The bank said 97 percent of its overall gross slippages of Rs 1,342 crore came from the retail segment which got hit because of the impact of the second COVID wave.
Sensex, Nifty hits record highs; FMCG stocks gain
The Sensex was up 321.25 points or 0.61% at 53271.88, and the Nifty was up 81.60 points or 0.51% at 15966.80. About 1726 shares have advanced, 1035 shares declined, and 85 shares are unchanged.
