Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers:
Indian markets started marginally in red following negative Asian market cues as China tech and education shares plunge and Singapore’s manufacturing output decline 3% in June on a seasonally adjusted, month-on-month basis. During the afternoon session markets swung between positive and negative territory with lacklustre trade as traders were concerned as foreign portfolio investors (FPIs) offloaded Indian equities to the tune of over Rs 5,689 crore in July so far as they continued to adopt a cautious stance in view of various domestic and global factors.
Also the European stocks were seen retreating as investors watch corporate earnings, Covid cases and German business sentiment which fell unexpectedly in July as supply chain constraints and rising Covid-19 infections dampened recent optimism.
Rupee Close:
Indian rupee ended flat at 74.42 per dollar, amid volatile trade saw in the domestic equity market.
It opened marginally lower at 74.46 per dollar against Friday's close of 74.40 and traded in the range of 74.40-74.52.
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 expected levels of the market 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. Technical indicator suggests, a volatile movement in the market in a small range.
Market Close:
Benchmark indices ended lower in the volatile trade on July 26 with Nifty below 15,850.
At close, the Sensex was down 123.53 points or 0.23% at 52852.27, and the Nifty was down 31.50 points or 0.20% at 15824.50. About 1791 shares have advanced, 1488 shares declined, and 151 shares are unchanged.
JSW Steel, Wipro, Reliance Industries, SBI and M&M were the top Nifty losers. SBI Life Insurance, Bajaj Finserv, Hindalco, Divis Labs and UltraTech Cement were among the top gainers.
Among sectors, Nifty energy index shed 1 percent while bank, auto and PSU Bank indices ended lower. However, some buying was seen on the metal, pharma, and IT names. BSE midcap index ended flat, while smallcap index ended 0.3 percent lower.
Nifty Energy index shed 1 percent dragged by the Adani Green, HPCL, IOC
Alembic Pharmaceuticals Q1:
The company's consolidated net profit was down 45.3% at Rs 161.9 crore against Rs 295.7 crore and revenue was down 1.1% at Rs 1,326 crore against Rs 1,341 crore, YoY.
Alembic Pharmaceuticals was quoting at Rs 909, down Rs 37.65, or 3.98 percent on the BSE.
Indian Metals & Ferro Alloys shares jump 5%
Indian Metals & Ferro Alloys share price jumped over 5 percent, hitting new 52-week high on BSE after the company reported robust June quarter earnings.
The company on July 24 posted a four-fold jump in its consolidated profit after tax (PAT) to Rs 99.09 crore during the June quarter, mainly on account of higher income.
The company had posted Rs 24.82-crore PAT during the April-June period of financial year 2020-21, IMFA said in a regulatory filing.
Zomato extends listing gains
After a steller debut, the shares of Zomato extended the gains and trading higher by 10 percent on the second day post listing.
On the listing day, the market capitalisation of Zomato went beyond the Rs 1 lakh crore mark.
The Rs 9,375-crore initial public offering, which opened for subsciption during July 14-16, had seen a stellar response from investors with 38.25 times subscription - highest in last 13 years among IPOs valued more than Rs 5,000 crore each.
Vishal Wagh, Research head, Bonanza Portfolio:
Glenmark Life Sciences is the leading manufacturer of Active Pharmaceutical Ingredients (APIs). It is promoted by Glenmark Pharmaceuticals. Glenmark Life Sciences is a leading manufacturer of selected specialized APIs for chronic therapeutic areas like CVS, CNS, diabetes, and pain management.
It exports products in Europe, Latin America, North America, Japan, and the rest of the world. It has a strong relationship with leading global generic companies.
With a proven track record of strong financial performance and high-quality product manufacturing with R&D infrastructure. It can be a good bet for longer-term as well as the short term also. Expected listing gains to the tune of 15-25% is quite possible.
Crude Updates:
Oil prices fell $1 on Monday as concerns about fuel demand caused by the spread of COVID-19 variants as well as changes to import rules in China offset expectations of tight supplies through the rest of the year.
Market at 3 PM
Benchmark indices were trading with marginal loss in the final hour of the trading.
The Sensex was down 76.92 points or 0.15% at 52898.88, and the Nifty was down 15.90 points or 0.10% at 15840.10. About 1671 shares have advanced, 1412 shares declined, and 130 shares are unchanged.
Emkay on Reliance Industries
RIL remains constructive on the O2C margin outlook with improving mobility, healthy domestic petchem demand and container shortage. Upstream’s earnings contribution should improve with higher output (MJ first gas by Q3FY23, overall 30mmscmd in CY23) and prices (to be up 50-60% in H2FY22).
Management is seeing signs of retail easing with operating store hours at 38% in Jun’21 (25% in May) and further opening-up in Jul’21. 700 new stores are in the pipeline for opening.
JioFiber has 3mn customers/access outside 12mn premises. Jio has received 100MHz in the 3GPP band n78 from the DoT for 5G trials. RIL and Microsoft have operationalized an initial 10MW capacity of Jio-Azure cloud data centers (Jamnagar-Nagpur).
Jio’s spectrum investments have created the capacity to on-board the next 200mn customers.
We value RIL on SOTP basis with a revised target price of Rs 2,340 (Jun’22E). Maintain Hold/Equal weight. Key risks are adverse commodity margins/currency and B2C competitive pressures.
Asia stocks hit 2021 lows as China skids, funds favour Wall St
Asian shares skidded to their lows for this year on Monday as concerns over tightening regulations upended Chinese equities and strong U.S. corporate earnings sucked funds out of emerging markets into Wall Street.
Chinese blue chips shed 4.4% to their lowest since December, in what was also the biggest daily decline in more than a year, as the education and property sectors were routed on worries over tighter government rules.
Ramkrishna Forgings Q1:
Ramkrishna Forgings has reported consolidated net profit at Rs 24.7 crore against loss of Rs 29.5 crore and revenue was at Rs 417.1 crore against Rs 113.6 crore, YoY.
Ramkrishna Forgings has touched a 52-week high of Rs 832 and was quoting at Rs 810, up Rs 16.40, or 2.07 percent on the BSE.
Geojit on Glenmark Life Sciences
At the upper price band of Rs 720, Glenmark Life Sciences is available at a P/E of 25x (diluted) which appears fairly priced. We assign a “subscribe” rating for the issue on a long-term basis considering its strong focus on R&D, expansion plans (1726.6 KL when completed), growth opportunity in CDMO services and expanding complex API portfolio.
Market at 2 PM
Benchmark indices continued to trade flat amid volatility with Nifty around 15850.
The Sensex was down 51.43 points or 0.10% at 52924.37, and the Nifty was down 12.90 points or 0.08% at 15843.10. About 1742 shares have advanced, 1313 shares declined, and 136 shares are unchanged.
SBI, JSW Steel, IOC, BPCL and Reliance Industries were among major losers on the Nifty, while gainers included Bajaj Finserv, Hindalco, Divis Labs, Titan Company and UltraTech Cement.
Kotak Mahindra Bank Q1:
Kotak Mahindra Bank has reported 31.9 percent jump in its Q1 net profit at Rs 1,642 crore versus Rs 1,244.4 crore and net interest income (NII) was up 5.8% at Rs 3,941.6 crore against Rs 3,724 crore, YoY.
Kotak Mahindra Bank was quoting at Rs 1,742.20, up Rs 19.10, or 1.11 percent on the BSE.
Nifty metal index added 1 percent led by the Jindal Steel, Hindalco, SAIL
Gaurav Garg, Head of Research, CapitalVia Global Research:
On Monday, Indian equity benchmarks got off to a sour start due to weakening in Asian rivals. Market sentiment is also dampened by fears of a third wave and the proliferation of Delta and Delta plus variants. The Indian health ministry recorded 39,742 new Covid-19 cases in the last 24 hours, prompting some caution.
As Commerce and Industry Minister Piyush Goyal expressed confidence that India will continue to attract high levels of foreign direct investment (FDI) in the current fiscal year, the downside was limited, and the market recovered swiftly. Stocks soared to new highs on Wall Street on Friday, with the Dow Jones Industrial Average closing above 35,000 for the first time, as the market recovered from its brief plunge earlier in the week. As traders continue to be terrified by the spread of the delta strain of the coronavirus in numerous markets in the region and throughout the world, most Asian markets were trading down on Friday, ignoring the overall upbeat signs from Wall Street.
We witnessed an attempt in the market to hold above an important support level of 15800. While sustaining above 15800 is the key factor from a short-term perspective, we expect the market to extend the rally till 15920-15950. On the sectoral front most of the sectors are trading in the positive zone but the Energy and Oil and Gas sector has shown some negativity. Divis Lab and Titan are the top gainers while JSW Steel and Maruti Suzuki are the top losers on Nifty.
Rupee Updates:
Indian rupee is trading marginally lower at 74.47per dollar, amid volatile trade seen in the domestic equity market.It opened lower at 74.46 per dollar against Friday's close of 74.40.
Vodafone Idea announces new corporate postpaid plans:
Vodafone Idea has announced new corporate postpaid plans which are aligned with Bharti Airtel’s plans. Vodafone Idea’s monthly Corporate Postpaid Base Plans start at Rs 299 with 30 GB data and unlimited calls. The stock was trading at Rs 8.37, up Rs 0.01, or 0.12 percent. It has touched an intraday high of Rs 8.49 and an intraday low of Rs 8.10.
HCL Tech selected strategic launch partner for Microsoft Cloud for financial services
HCL Technologies was selected as a launch partner for Microsoft’s recently announced industry cloud, Microsoft Cloud for Financial Services. Microsoft Cloud for Financial Services brings together capabilities with multilayered security and comprehensive compliance coverage to deliver differentiated customer experiences, improve employee collaboration and productivity, manage risk and modernize core systems. The stock was trading at Rs 1,001.15, up Rs 6.90, or 0.69 percent.
Market update at 1 PM:
Sensex is up 5.54 points or 0.01% at 52981.34, and the Nifty up 5.00 points or 0.03% at 15861. Bajaj Finserv, Hindalco Industries and Titan Company are the top gainers while SBI, Maruti Suzuki and Wipro are the top losers.
Biocon may apply for full marketing authorisation of itolizumab: Report
Biocon is mulling making an application to the Drugs Controller General of India (DCGI) for full marketing authorisation for itolizumab, its anti-CD-6 IgG1 monoclonal antibody drug used in COVID-19 treatment. This would make itolizumab the first medicine to have full marketing authorisation for use by COVID-19 patients, Business Standard has reported.
"We expect results from the phase 4 study on itolizumab by the end of this quarter. This would be real-world data from around 300 patients," Arun Chandavarkar, Managing Director of Biocon Biologics told the publication.
S&P BSE Smallcap outperformed, adding over half a percent led by Caplin Labs, Arman Financial, Mahindra CIE and Inox Wind
Abhishek Bansal, Founder Chairman, Abans Group
:Concerns over the global spread of the Delta Covid variant are expected to weigh on crude oil prices. Crude oil prices are down substantially from their recent high of $76.98 on July 6th, but they are still higher than their recent low of $65.21 on July 20.
US crude oil output remained constant week on week at a 14-month high of 11.4 million BPD, down -1.7 million BPD (-13.0%) from the record-high of 13.1 million BPD set in February 2020. WTI Crude oil prices are encountering tough resistance near $72.68; however, near the 50-day EMA at $70.51 and the 100-day EMA at $66.64, immediate support can be found.
Global brokerages reduce target price of Ambuja Cements despite robust Q2 profit
Ambuja Cements reported a consolidated net profit to Rs 1,161.16 crore in the quarter ended on June 30, 2021 backed by strong growth in volumes and efficiency gains. It had clocked a net profit of Rs 592.51 crore in the year-ago period, Ambuja Cements said in a BSE filing. Japanese brokerage firm Nomura has downgraded the stock to reduce with the target at Rs 360 while JP Morgan has a neutral rating on the stock with the target at Rs 350 per share.
Market update at 12 PM
: Sensex is down 23.93 points or 0.05% at 52951.87, and the Nifty shed 7.90 points or 0.05% at 15848.10. Titan Company, Britannia Industries and Bajaj Finserv are the top gainers while JSW Steel, Maruti Suzuki and Tata Motors are the top losers.
Among the sectors, IT and pharma edged higher while auto, PSU banks and energy stocks are under pressure.
Zomato IPO sets up a new role model for Indian startups
Zomato IPO is a seminal event for the world of start-ups in India. Irrespective of one’s view on the valuation, this event will have a significant positive influence on start-ups and the broader economy. This sets a new benchmark for a role model for founders and start-ups. While we have had successes in the first wave of internet and tech start-ups like MakeMytrip, Info Edge, Matrimony etc., we have not seen mega IPOs in the last 10 years.
'Info Edge to become a 5-digit stock in near future'
Zomoto’s bumper listing will give a boost to Info Edge investors too since they are group companies. Eventually Info-Edge Rs 4.7 crore investment in Zomato’s is now worth Rs 15,000 crore. So, Info-Edge's Books too has been growing networth. Any investment in Info Edge shares if below Rs 5000 will surely be a good bet and in long term we can see it be a 5-digit stock price, said Kapil Goenka, Director, CM Goenka Stock Brokers.
Government to move Insurance Law Amendments in current session of Parliament
The government, according to sources to CNBC-TV18 is likely to move Insurance Law Amendments in current session of Parliament. Insurance Law Amendments to be enabling in nature to allow privatisation. Government to de-control 1 PSU non-life insurer while retaining strategic presence. Inter-ministerial discussion for Cabinet nod is underway.
KR Choksey on Glenmark Life Sciences IPO
Glenmark Life Sciences has a strong financial profile with profitable operations. Revenues have grown at a CAGR of 46 percent over last 2 years to Rs 1885 crore in FY21, while EBITDA margins have improved by 300bps from 28 percent to 31 percent over the same period. Profit after tax has grown by 34 percent to Rs 352 crore from Rs 196 crore two years ago. ROCE is improved and strong at 32.7 percent (FY21), while asset turnover ratio has improved from 2.7x in FY19 to 3.3x in FY21. External debt is negligible and the Balance sheet is well capitalised.
Company enjoys strong, long term relationships with large pharmaceutical clients providing it revenue visibility and cost leadership. Capacity addition planned over next 2-4 years besides focus on expansion of product portfolio and geographical reach, together should add significantly to topline and bottomline. IPO’s upper price band of Rs 720 per share implies a P/E of 22.1x for GLS, which is at a discount to peer average of 30.3x.
On account of strong demand outlook for APIs, GLS’ leadership in select high value APIs, planned capacity addition and product portfolio diversification, cost leadership due to long term relationships and reasonable valuation, we recommend a ‘Subscribe’ with a long term perspective.
Market at 11 AM
Benchmark indices were trading with marginal gains in the volatile session.
The Sensex was up 68.29 points or 0.13% at 53044.09, and the Nifty was up 20.20 points or 0.13% at 15876.20. About 1821 shares have advanced, 1105 shares declined, and 143 shares are unchanged.
ITC, HDFC Bank, Jubilant FoodWorks, Zee Entertainment and Indiabulls Housing Finance were among the most active shares on the BSE, while ICICI Bank, Indiabulls Housing Finance, Zomato, Jindal Steel and Reliance Industries were among the most active shares on the NSE.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments:
The markets seem to be very lethargic! We have been trading in this range for a very long time. 15400-15900 continues to remain the lackluster zone for the Nifty and until we do not get past either ends, we will not see a meaningful move.
The technical charts still suggest a positive bias and hence dips or corrections which take the markets closer to the lower end of the range can be utilized to accumulate long positions for higher targets.
Nifty Media index rose 1 percent led by the PVR, Inox Leisure, Sun TV
YES Securities on Reliance Industries:
We maintain our buy recommendation on RIL, with a revised target price of Rs 2440 per share (from Rs 2325 per share) as we roll estimates forward and introduce FY24e. At CMP the stock is trading at 18x FY24e, as against 21x implied by our SOTP based target price.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
15600 - 15900 range has held well for the Nifty for some time now. Buying at around 15600 and selling at around 15900 have proved to be profitable for traders. This range is likely to break on the upside when FII selling becomes weak and DII buying becomes strong, as is happening now. The very good Q1 results declared so far confirm the turnaround in corporate earnings. And this can embolden the bulls.
If the Nifty breaks 15900 decisively & move forward, that rally is likely to be led by a new set of heavyweights. An important development in the banking space is the huge outperformance of ICICI Bank over HDFC Bank. This month, so far, HDFC Bank is down 3.7% while ICICI Bank is up by 7.3%. Globally, while the US & European markets are at record highs, Asia is under pressure due to rising Covid cases in Indonesia, Korea & Japan. This is unlikely to weigh on India since fresh cases are continuously on the decline in India except in certain pockets.
Tatva Chintan IPO share allotment expected today
Specialty chemicals company Tatva Chintan Pharma Chem is expected to finalise the IPO share allotment today, July 26.
Its Rs 500-crore public issue received overwhelming response from investors as it was oversubscribed by 180.36 times during July 16-20, the second highest subscription in 2021 after MTAR Technologies.
Non-institutional investors have put in bids 512.22 times their reserved portion, while the portion set aside for qualified institutional buyers was subscribed 185.23 times and that of retail 35.35 times.
Gold Updates:
Gold prices inched higher on Monday, supported by easing USbond yields and concerns over rising Delta variant infections, while investors focused on the Federal Open Market Committee’s meeting this week.
Joseph Thomas, Head of Research, Emkay Wealth Management:
This week the focus would continue to be on the corporate earnings, as the market participants try to gauge the sustainability of the earnings upgrades seen during the last couple of earning seasons. Another factor to watch is the rise in the delta variant cases in the US as also in certain parts of Europe.
ICICI Direct
The USDINR has moved towards the lower band of consolidation. Looking at the closure in OTM strike Calls we feel a move towards 75 could be seen in coming days.
The dollar-rupee July contract on the NSE was at Rs 74.47 in the last session. The open interest rose almost 1.5% for the July series.
Rupee Opens:
Indian rupee opened marginally lower at 74.46 per dollar on Monday against Friday's close of 74.40, amid volatile trade seen in the domestic equity market.
On July 23, Indian rupee ended marginally higher at 74.40 per dollar against Thursday's close of 74.46.
Market at 10 AM
Benchmark indices were trading flat in the volatile session amid mixed global cues.
At 10:00 IST, the Sensex was up 4.53 points or 0.01% at 52980.33, and the Nifty was up 5 points or 0.03% at 15861. About 1692 shares have advanced, 1074 shares declined, and 125 shares are unchanged.
Divis Labs, Sun Pharma, Titan Company, Tata Consumer Products and Infosys were among major gainers, while losers were JSW Steel, Axis Bank, SBI, HDFC and Maruti Suzuki.
