Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The markets have been able to close above the 15,600 support which is heartening for the time being. The short term trend gets threatened if we break this level on a closing basis.
If a reversal in trend happens from the current juncture, the Nifty can scale up to 16,000-16,100. It is better to wait for a clean direction to emerge as the current risk is to reward ratio is skewed in favor of the risk.
Rupee Updates:
Indian rupee ended near the day's high at 74.61 per dollar, amid sellingwas seenin the domestic equity market.It opened lower at 74.95 per dollar against previous close of 74.87 and traded in the range of 74.54-74.95.
Bajaj Finance Q1:
Bajaj Finance has reported 4.2 percent jump in its Q1 net profit at Rs 1,002.4 crore versus Rs 962.3 crore and net interest income (NII) was up 8% at Rs 4,489 crore versus Rs 4,152 crore, (YoY).
Bajaj Finance ended at Rs 5,962.00, down Rs 50.75, or 0.84 percent on the BSE.
Market Close:
Benchmark indices ended lower for the third consecutive session on July 20 dragged by the metal, realty and financial names.
At close, the Sensex was down 354.89 points or 0.68% at 52198.51, and the Nifty was down 120.30 points or 0.76% at 15632.10. About 1109 shares have advanced, 2056 shares declined, and 107 shares are unchanged.
Hindalco, IndusInd Bank, Tata Steel, NTPC and Bharti Airtel were the top lowers on the Nifty. While top gainers included Asian Paints, UltraTech Cement, HUL, Grasim and Maruti Suzuki.
Among sectors, except FMCG all other indices ended lower. BSE Midcap and Smallcap indices fell over 1 percent each.
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More than 400 stocks hits 52-week high;
Ashis Biswas, Head of Technical Research at CapitalVia Global Research Limited.
The market witnessed the continuation of correction for the second consecutive day after it failed to hold the support level near 15650. 15650 will be an important support level from a short-term perspective. If the market closes below 15650, market might see the correction extend till the level of 15500.
The technical indicator suggests, a volatile movement in the market in a small range. As such the traders are advised to refrain from building a fresh buying position, until market sees further decisive movement.
Newgen Software Technologies Q1 earnings:
Newgen Software Technologies has posted 59 percent fall in its Q1FY22 net profit at Rs 21.6 crore versus Rs 52.7 crore and revenue was down 20.2% at Rs 159.5 crore versus Rs 200 crore, QoQ.
Newgen Software Technologies was quoting at Rs 662.60, down Rs 34.85, or 5 percent on the BSE.
Nifty Pharma index shed 1 percent dragged by the Cadila Healthcare, Cipla, Biocon
Tatva Chintan IPO subscribed 138.5 times on final day
he Rs 500-crore IPO of Tatva Chintan Pharma Chem is witnessing an overwhelming response from investors as it is oversubscribed by 138.5 times so far, on July 20, the final day of bidding.
Investors have put in bids for 45.16 crore equity shares against offer size of 32.61 lakh equity shares, the subscription data available on the exchanges showed. The offer size mentioned above was reduced as the company raised Rs 150 crore from anchor investors on July 15. Read More
Reliance Industrial Infrastructure Q1 results:
Reliance Industrial Infrastructure Q1 profit was at Rs 2.40 crore against Rs 2.05 crore. Its total income was at Rs 19.77 crore.
Reliance Industrial Infrastructure was quoting at Rs 754, down Rs 27.05, or 3.46 percent on the BSE.
Market at 3 PM
Indian benchmark indices were trading lower in the final hour of the trade with Nifty below 15,650.
The Sensex was down 329.54 points or 0.63% at 52223.86, and the Nifty was down 110.60 points or 0.70% at 15641.80. About 970 shares have advanced, 2004 shares declined, and 94 shares are unchanged.
ISGEC Heavy Engineering bags order from Russia
ISGEC Heavy Engineering has recently secured a prestigious order for two sets of Carbonation Columns, one set of Gas Scrubber Columns, and one set of Distillation Columns, company said in its release.
This order has been received from one of the world's most prominent soda ash manufacturing companies based in Russia, it added.
ISGEC Heavy Engineering was quoting at Rs 792.10, up Rs 4.95, or 0.63 percent on the BSE.
Amarjeet Maurya - AVP - Mid Caps, Angel Broking
Asian Paint (APL) 1QFY2022 results outperformed the estimates. The top-line grew by ~91% YoY to Rs 5,585 crore. The domestic Decorative business more than doubled its volume and delivered stellar revenues over the lower base of last year which had suffered from the first nationwide lockdown.
The business registered strong compounded average growths in value and volume in comparison with 1QFY20 which was a normal quarter, indicative of a strong consistent trajectory. The Industrial Business and the Home Improvement business also doubled its revenue on last year’s low base.
On the operating front, the company reported margin contraction (OPM down by 21bp YoY to 16.4%), primarily on account of higher costs during the quarter. The reported net profit grew by ~162% YoY to Rs 574 crore, on account of strong sales growth. Currently we are positive on the stock.
Rupee trades at day's high at 74.61 per dollar
Indian rupee is trading at day's high at 74.61per dollar, amid selling seen in the domestic equity market.
It opened lower at 74.95 per dollar against previous close of 74.87.
Wipro sells entire shareholding in IntSights for $19.17 million
IT services major Wipro on Tuesday said it has sold its entire stake in IntSights, a cyberthreat intelligence service provider, for USD 19.17 million (about Rs 143.3 crore).
On Monday, security analytics and automation firm Rapid7, Inc had announced the acquisition of IntSights Cyber Intelligence Ltd - which provides contextualised external threat intelligence and proactive threat remediation - for USD 335 million in cash and stock.
During the period 2016-19, Wipro acquired minority stake of less than 20 percent in IntSights Cyber Intelligence Ltd (IntSights), for an aggregate investment of USD 4.21 million, Wipro said in a regulatory filing on Tuesday.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities:
Crude oil prices traded up with benchmark NYMEX WTI crude oil prices were trading 0.32% up to $66.56 per barrel for the day. MCX Crude oil August futures were trading flat near to Rs 4,998 by noon.
Crude oil prices are expected to trade sideways to down for the day with resistance at $72 and support at $68 per barrel. MCX Crude oil August has support at Rs 5,180 and resistance at Rs 5,320.
European markets are trading in the green with FTSE and CAC up over a percent each
Tatva Chintan IPO updates
The Rs 500-crore IPO of Tatva Chintan Pharma Chem is witnessing an overwhelming response from investors as it is oversubscribed by 119.21 times so far, on July 20, the final day of bidding.
Investors have put in bids for 38.88 crore equity shares against offer size of 32.61 lakh equity shares, the subscription data available on the exchanges showed. The offer size mentioned above was reduced as the company raised Rs 150 crore from anchor investors on July 15.
DCM Shriram Q1:
Net profit at Rs 157.5 crore against Rs 70.1 crore (YoY). Revenue was up 5 percent at Rs 2,007.8 crore against Rs 1,912 crore (YoY). EBITDA was up 70.6 percent at Rs 283 crore against Rs 165.9 crore (YoY) while EBITDA margin came in at 14.1 percent against 8.7 percent (YoY).
Asian Paints Q1
Net profit at Rs 574.3 crore against Rs 219.6 crore (YoY). Revenue jumped 91.1 percent at Rs 5,585.4 crore against Rs 2,922.7 crore (YoY). EBITDA gained 88.7 percent at Rs 913.6 crore against Rs 484.3 crore (YoY) while EBITDA margin came in at 16.4 percent against 16.6 percent (YoY). Tax expenses at Rs 204.3 crore against Rs 86.2 crore (YoY). Other expenses at Rs 800.8 crore against Rs 461.9 crore (YoY).
Domestic décor business more than doubled its volume over a low base YoY. Paints business revenue grew 90.4 percent at Rs 5,464.7 crore against Rs 2,870.6 crore (YoY). Paints business EBIT came in at Rs 809.1 crore against Rs 371.6 crore (YoY) while paints business EBIT margin was reported at 14.8 percent against 12.9 percent (YoY).
Motilal Oswal Private Equity launches new Rs 4,000 crore PE fund
Motilal Oswal Private Equity (MOPE) on July 20 announced it is launching its new growth equity fund, India Business Excellence Fund IV (or IBEF IV), of Rs 4,000 crore. This will be the fourth fund for the homegrown private equity firm which has been investing in the Indian private markets since 2007.
"The investment strategy for the new fund will be in line with the previous funds as MOPE continues its focus on providing crucial growth capital to mid-market Indian companies demonstrating strong long-term sustainable growth potential," Motilal Oswal PE said in a statement.
Market at 2 PM
Benchmark indices were trading lower with Nifty below 15700 dragged by the metal, auto, pharma and financial stocks.
The Sensex was down 211.45 points or 0.40% at 52341.95, and the Nifty was down 79.10 points or 0.50% at 15673.30. About 953 shares have advanced, 1993 shares declined, and 92 shares are unchanged.
Rakesh Jhunjhunwala reduces stake Tata Motors:
Tata Motors share price slipped nearly 2 percent on July 20 after Ace investor Rakesh Jhunjhunwala has reduced his stake in the company.
The big bull Rakesh Jhunjhunwala has reduced his stake in the company to 1.14 percent (3,77,50,000 shares), as per the BSE shareholding pattern of June 2021.
In the quarter ended March 2021 his holding in the company stood at 1.29% (4,27,50,000 shares).
BSE Power index shed 2 percent dragged by the Adani Green, Adani Power, Adani Transmission
Gaurav Garg, Head of Research, CapitalVia Global Research:
In early morning trade, Indian equities benchmarks fell even further after a global selloff. Traders were wary, with the Minister of State for Finance indicating that, in the face of the pandemic, recovery as a percentage of gross non-performing assets fell to 12.8 percent in 2020-21 from 15.8 percent the previous fiscal year.
Traders also took note of Parliament's announcement that states are owed over Rs 81,000 crore in GST compensation for 2020-21, while Rs 55,345 crore is owed for April-May this year. On Monday, a jump in Delta variant infections caused a broad sell-off on Wall Street, as investors worried about more COVID-19 shutdowns and a long recovery. The S&P 500 and the NASDAQ Composite both finished the day substantially lower, with the S&P and NASDAQ experiencing their biggest one-day percentage drops since mid-May. Concerns over the recurrence of coronavirus cases in numerous countries, as well as geopolitical concerns, drained investors' desire for risky assets.
We witnessed the continuation in the correction in the market and not being able to maintain the crucial support zone of 15620-15650. If the market closes below the level of 15620, we can witness the market correction till the level of 15500.On the sectoral front all the major sectors have shown weakness in the market. UltraTech Cements and HUL are the top gainers while Hindalco and HCL Tech are the top losers on Nifty.
Emkay on HCL Technologies:
The company reiterated double-digit revenue growth guidance in CC for FY22, implying at least a 2.9% CQGR over Q2-Q4. It expects 19-21% EBITM for FY22, considering planned investments in Mode 2 capabilities and certain markets.
We largely retain our EPS estimates (+/-1% change), factoring in Q1 performance. We maintain buy with a target price of Rs 1,280 at 22x Jun’23E EPS, considering attractive valuation (>5% FCF yield, double-digit earnings growth profile, >20% ROE) and anticipated revenue acceleration.
Tata Motors to raise up to Rs 500 crore via NCDs:
Tata Motors on Tuesday said its board has approved a proposal to raise up to Rs 500 crore through the issue of securities on a private placement basis.
A meeting of the duly authorised committee has approved for subscription, on a private placement basis, up to 5,000 rated, listed, unsecured, redeemable, non-convertible debentures (NCDs) E30-B Series of face value Rs 10,00,000 each aggregating up to Rs 500 crore, the auto major said in a regulatory filing.
Tata Motors was quoting at Rs 305.85, down Rs 2.85, or 0.92 percent on the BSE.
Market at 1 PM
Benchmark indices erase some of the intraday losses but still trading lower with Nifty around 15650
The Sensex was down 263.99 points or 0.50% at 52289.41, and the Nifty was down 95.40 points or 0.61% at 15657. About 864 shares have advanced, 2051 shares declined, and 89 shares are unchanged.
Tatva Chintan IPO subscribed 22 times on final day
The Rs 500-crore IPO of Tatva Chintan Pharma Chem is witnessing an overwhelming response from investors as it is oversubscribed by 22 times so far, on July 20, the final day of bidding.
Investors have put in bids for 7.40 crore equity shares against offer size of 32.61 lakh equity shares, the subscription data available on the exchanges showed. The offer size mentioned above was reduced as the company raised Rs 150 crore from anchor investors on July 15.
Retail investors seem to be strongly backing the issue as their reserved portion was subscribed 28.77 times and that of non-institutional investors 28.59 times.
Qualified institutional buyers have put in bids 12 times their reserved portion.
Parsvnath Developers receives completion certificate:
Parsvnath Estate Developers Private Limited (PEDPL), a wholly owned subsidiary of Parsvnath Developers, has received completion certificate of Phase I of its project “Parsvnath Capital Tower’ situated at Bhai Veer Singh Marg, New Delhi, company said in its release.
Parsvnath Developers was quoting at Rs 16.85, up Rs 0.74, or 4.59 percent on the BSE.
Nifty Auto index slipped 1 percent dragged by the TVS Motor, M&M, Tata Motors
Rane Madras Q1:
Rane Madras has reported net profit at Rs 15.2 crore against loss of Rs 41.9 crore and revenue was up at Rs 340.3 crore against Rs 109.9 crore, YoY.
Rane Madras was quoting at Rs 399.00, down Rs 16.80, or 4.04 percent on the BSE.
Market at 12 PM
Benchmark indices fell 1 percent dragged by the metal, banks, realty and power names.
The Sensex was down 469.13 points or 0.89% at 52,084.27, and the Nifty was down 153.80 points or 0.98% at 15,598.60. About 761 shares have advanced, 2109 shares declined, and 88 shares are unchanged.
BSE Midcap index slipped 1.5 percent
Shyam Metalics Q1 net profit at Rs 458 crore
Shyam Metalics & Energy has reported net profit at Rs 458 crore versus Rs 80.4 crore and revenue was at Rs 2,465 crore versus Rs 911.8 crore, YoY.
Shyam Metalics & Energy touched a 52-week high of Rs 444.50 and was quoting at Rs 440.10, up Rs 10.10, or 2.35 percent on the BSE.
Nifty Bank index fell 1 percent dragged by the Federal Bank, RBL Bank, IDFC First Bank
Abhishek Bansal, Founder Chairman, Abans Group
WTI Crude Oil prices are now hovering at $66.56, a significant drop from the recent high of 76.98 set on July 6th. Oil prices have fallen about 13.5 percent since their latest high. The OPEC+ pact is expected to increase oil supply, while increased COVID-19 infections are expected to reduce oil demand, lowering oil prices.
WTI Crude oil prices are likely to continue negative as long as they remain below the important resistance level of the 50-day EMA at $70.30, with immediate support near $64.15.
After three consecutive days of gains, the BSE Realty index cracked over 3 percnet in morning trade on July 20 as investors embarked on profit booking amid concerns of rising COVID cases gobally and sluggish economic growth.
The BSE Realty index was 2.72 percent down at 3,084 at 1140 hours with all components in the red. Shares of Sobha, Oberoi Realty, Indiabulls Real Estate fell up to 4 percent.
The realty index had ended in the green in the previous session even as the market benchmarks the Sensex and the Nifty suffered losses of over a percent each.
Rupee Updates:
Indian rupee is trading flat at 74.88 per dollar, amid selling seen in the domestic equity market.It opened lower at 74.95 per dollar against previous close of 74.87.
Wonderla Hyderabad is set to open from August 5
Wonderla Holidays is all set to reopen Wonderla Hyderabad from August 5, 2021.
As part of the reopening initiative, Wonderla is giving a limited offer where the visitors can enjoy a fun-filled day at the park for just Rs. 799 (inclusive of GST), with access to all land and water rides. The theme park will be open only on Thursday to Sunday from 11 am onwards, company said in its release.
At 11:29 hrs Wonderla Holidays was quoting at Rs 243.55, down Rs 1.20, or 0.49 percent on the BSE.
Buzzing
HDFC Life Insurance share price fell in the early trade on July 20 after the company posted its June quarter earnings.
Private life insurer saw a 40.1 percent year-on-year (YoY) fall in its consolidated net profit at Rs 269.55 crore. This was on the back of rise in reserves. Also Read
S&P BSE Smallcap shed over 2 percent dragged by Alok Industries, Siyaram Silk, Nelcast and Datamatics Global
Tatva Chintan IPO updates
The Rs 500-crore IPO of Tatva Chintan Pharma Chem consistently witnessed overwhelming response from investors as it was oversubscribed by 18 times so far, on July 20, the final day of bidding.
Investors have put in bids for 5.87 crore equity shares against offer size of 32.61 lakh equity shares, the subscription data available on the exchanges showed. The offer size mentioned above was reduced as the company raised Rs 150 crore from anchor investors on July 15.
Retail investors seem to be strongly backing the issue as their reserved portion has subscribed 26.5 times and that of non-institutional investors 18.22 times. Qualified insitutional buyers have put in bids 3 times their reserved portion.
Market update at 11 AM:
Sensex is down 396.88 points or 0.76% at 52156.52, and the Nifty shed 131.90 points or 0.84% at 15620.50. UltraTech Cement and Asian Paints are the top gainers while Hindalco Industries, Mahindra & Mahindra and JSW Steel are the top losers.
Among the sectors, the metal index shed over 2 percent while banks and auto indices are also under pressure. BSE, Midcap and Smallcap indices are down over a percent each.
CLSA on Nippon Life India Asset Management:
CLSA has maintained outperform rating on Nippon Life India Asset Management and raised the target price to Rs 420 per share.
It raises FY22/23 EPS estimate by 4%/6%. At the current valuations, it’s possibly factoring in most of the valuation upside.
At 10:44 hrs Nippon Life India Asset Management was quoting at Rs 400.75, down Rs 4.35, or 1.07 percent on the BSE.
India Ratings & Research Private has assigned credit rating on the bank facilities of Ramkrishna Forgings:
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
The 725 points cut in the Dow yesterday, the worst in 2021, is a reflection of the risk-off in markets globally. Different reasons are attributed to this correction: The rising Covid cases in the US and UK due to the delta variant, inflation concerns, and concerns about growth coming below consensus expectations. It may be all these. The fact is that at high valuations when investors are sitting on big profits, any fear can trigger profit booking and corrections.
This correction is good for the markets. In the absence of corrections, the excessive valuations will render the inevitable crash very severe and painful. A major correction is unlikely in India since we have already corrected a bit from the recent record high. Investors may opt for the safety of performing sectors with earnings visibility like IT, pharma, metals, cement, capital goods, and large financials.
