Ajit Mishra, VP - Research, Religare Broking:
Markets showed resilience and gained over a percent amid mixed cues. After the initial uptick, the benchmark gradually inched higher as the session progressed and settled around the day’s high.
Healthy buying in auto, FMCG, financials and realty stocks boosted sentiment. Among the benchmark indices, the Nifty index settled at 15989.80 levels; up by 1.13%. The broader indices also ended in the range of 0.5-2%.
Global indications are still mixed so it’s too early to celebrate the recent rebound. We recommend continuing with a cautious approach and sticking with the themes which are offering comfort even during the downtick. Nifty has the potential to inch towards 16,200 however the upcoming earnings season would play a critical role in the sustainability of the rebound
Deepak Jasani, Head of Retail Research, HDFC Securities:
Nifty rose on July 06 despite not so encouraging Asian cues and retested 16000 levels. Nifty opened flat and rose gradually through the day to close almost at the intraday high. At close Nifty was up 1.13% or 178.9 points at 15989.8. In the process, Indian markets were the best performer in the Asian region.
Volumes on the NSE were a little higher than the recent average. Among sectors, Realty, Consumer Durables, Auto and FMCG indices gained the most while Metals lost the most. Advance decline ratio was comfortably above 1:1. BSE Midcap index outperformed the Nifty.
Asian stocks mostly slipped on Wednesday as investors' fears deepened that the continent is leading the world into recession. The surge in COVID-19 infections in China also hurt market sentiment as it reignited worries about potential lockdowns. European stock markets traded higher Wednesday, rebounding strongly with investors seeking bargains after the previous session’s slump on increasing recession fears. An end to strike by Norwegian oil and gas workers eased worries of energy supply crunch.
A move above 16026 could result in more upsides while 15785 could be near term supports.
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
The Nifty bulls came back strong from the lower levels and ended the index on a high note. The lower-end support stands at the 15,800 level and as long as this support is held the index remains in a buy mode.
The Bank Nifty covered the entire previous day's losses and closed near the day's high indicating sharp short-covering throughout the day. The index is comparatively stronger than the Nifty index and continues to be in buy mode with strong support at the 33800 level. The index is likely to test the upside level of 35,000-35,500 which coincides with its 200DMA.
Vinod Nair, Head of Research at Geojit Financial Services:
Softening crude oil prices, FIIs repositioning to net buyers and strong business data from lenders tempered optimism in domestic equities.
Crude prices fell over recessionary fears, however, the fall has boosted the appetite for consumption, chemicals, logistics and OMCs as it will reduce the cost burden of these sectors.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Indian stock indices outperformed other Asian peers to end on a firm note and, despite the volatile sentiment, Nifty managed to edge past the psychological 16k mark on renewed buying. It was more of a relief rally as markets have been falling in the last few sessions due to worries of global recession and falling crude oil prices.
Technically, the Nifty held the 20-day SMA (Simple Moving Average) level and bounced back sharply. It has also formed a long bullish candle on daily charts which is broadly positive.
We are of the view that the intraday support has shifted to 15900 from 15750. Above 15900, the index could move up to 16100-16200.
On the flip side, below 15900, any uptrend would be vulnerable. Quick intraday correction is not ruled out if the index trades below 15900. Below the same, the index could slip till 15800.
Rupee Close:
Indian rupee ended marginally higher at 79.30 per dollar against Tuesday's close of 79.37.
Market Close:
Benchmark indices ended on positive note with Nifty closing near 16,000 led by the auto, FMCG and financial stocks.
At close, the Sensex was up 616.62 points or 1.16% at 53,750.97, and the Nifty was up 178.90 points or 1.13% at 15,989.80. About 1779 shares have advanced, 1436 shares declined, and 131 shares are unchanged.
Britannia Industries, Bajaj Finance, Bajaj Finserv, HUL and Eicher Motors were among the top Nifty gainers. ONGC, Power Grid Corp, NTPC, HDFC Life and Hindalco Industries were among the losers on the index.
On the sectoral front, the Auto, FMCG, Realty, IT and Bank indices gained 1-2, while selling was seen in the Metal stocks.
The BSE midcap index rose 1.7 percent, and smallcap index added 0.94 percent.
Credit Suisse View On Apollo Hospitals
Credit Suisse has maintained outperform rating on Apollo Hospitals Enterprises with a target at Rs 4,350 per share.
The e-pharmacy sector discounts & promotion moderated but company is gaining the share. The market share of app downloads has increased to 25% in June 2022 versus sub-20% in Q4.
The current stock price not factoring in any upside from Apollo 24|7. However, market share gain should be positive for the stock, reported CNBC-TV18.
Control Print arm acquires 75% stake in Markprint:
Control Print through subsidiary Control Print B.V. has entered into an agreement with Markprint B.V. in Netherlands to acquire majority stake (75%) in Markprint B.V. The acquisition will be completed by July 31 and acquisition cost is 1.5 million euros.
Control Print was quoting at Rs 442.10, up Rs 9.85, or 2.28 percent.
BSE Smallcap index added nearly 1 percent led by the Kiri Industries, Responsive Industries, Himadri Speciality Chemical
Credit Suisse View On Coal India
Credit Suisse has maintained outperform rating on Coal India with a target at Rs 250 per share.
The strong performance of the stock continues and it is better to track e-auction pricing than premium.
June 2022 offtake/production was up 15%/29% YoY, while power demand was up 16% YoY.
Broking house expect street to upgrade estimates and see company maintaining its healthy dividend yield,
The wage hikes & FSA price changes are key events, reported CNBC-TV18.
Tide partners with Transcorp International
Tide, the UK's leading SME-focused business financial platform that began setting up operations in India in 2020, has partnered with Transcorp International, an Authorised Dealer Category II and perpetual Prepaid Payment Instrument (PPI) license holder.
They will launch co-branded prepaid cards (Tide Expense Card) as an entry product. Tide will offer payment services to small businesses across India, starting with a Tide business account, accompanied by a Tide Expense Card.
Hindustan Power Exchange commences operations
Hindustan Power Exchange (HPX), promoted by Bombay Stock Exchange, PTC India and ICICI Bank, today commenced operations after receiving all necessary approvals from Central Electricity Regulatory Commission.
Backed by the latest technology and a series of innovative features, the exchange promises to offer speed, transparency, and better price discovery in the execution of trades. Click to Read Full Media Release
Market at 3 PM
Benchmark indices were trading higher in the final hour of the trading with Nifty above 15950.
The Sensex was up 570.75 points or 1.07% at 53705.10, and the Nifty was up 161.00 points or 1.02% at 15971.90. About 1643 shares have advanced, 1420 shares declined, and 140 shares are unchanged.
Manappuram Finance re-appoints VP Nandakumar as MD & CEO
The board of directors has re-appointed Mr V P Nandakumar as the Managing Director & Chief Executive Officer (MD & CEO) of Manappuram Finance with effect from 27th July, 2022 up to 31st March 2024 subject to the approval of shareholders at the 30th Annual General Meeting.
Manappuram Finance was quoting at Rs 90.25, up Rs 0.60, or 0.67 percent on the BSE.
BSE Midcap index rose 1 percent supported by the Kansai Nerolac Paints, Emami, Abb India:
Yash Gupta- Equity Research Analyst, Angel One:
Bajaj Finance reported a good set of numbers for Q1FY23. The company reported the highest ever quarterly increase in its customer franchise of 2.7 MM.
Bajaj Finance has reported its quarterly business update. The customer franchise reached 60.3 Mm as compared to 50.5 Mm last year, this is the highest quarterly increase in customer franchise by Bajaj finance of 2.7 Mm in Q1FY23.
Along with the customer franchise the company has also reported good numbers for the new loan book which is at 7.4 Mm for Q1FY2023 as compared to 4.6 in Q1FY22.
Overall the Q1FY23 quarterly update seems to be very strong for Bajaj Finance and the company is back on its pre-covid growth momentum.
We expect Bajaj Finance to continue this growth momentum for the next couple of quarters.
We have a neutral outlook on Bajaj Finance looking at the current valuations and comparing them with peers group.
European Markets Updates
CBI conducts searches at premises of MD & other employees of Patel Engineering in Mumbai
Tapan Patel, Senior Analyst (Commodities), HDFC Securities
:
Crude oil prices traded higher with benchmark NYMEX WTI crude oil prices rose by 1.24% to $100.69 per barrel. Crude oil prices pared some losses as investors piled back into the market after a heavy rout in the previous session, with supply concerns returning to the fore even as worries about a global recession linger. OPEC Secretary General Mohammad Barkindo said on Tuesday that the industry was "under siege" due to years of under-investment, adding shortages could be eased if extra supplies from Iran and Venezuela were allowed.
We expect crude oil prices to trade sideways to down with resistance at $103 per barrel with support at $98 per barrel. MCX crude oil July contract has important support at Rs 7680 and resistance at Rs 8120 per barrel.
DGCA issues show-cause notice to SpiceJet w.r.t degradation of safety margins
J Kumar Infraprojects bags order:
J Kumar Infraprojects has received Letter of Acceptance from Brihanmumbai Municipal Corporation, for design, build and commissioning of priority sewer tunnel-Phase I from Don Bosco to New Malad IPS with segment lining method in Mumbai.
The project cost is Rs 571.01 crore. J Kumar lnfraprojects in joint venture with Michigan Engineers bagged this project with 60:40 proportion.
BSE Realty index gained 1 percent led by the Macrotech Developers, Godrej Properties, Prestige Estates Projects
Chandan Taparia, Vice President, Equity Derivatives and Technical, Broking & Distribution, Motilal Oswal Financial Services:
Nifty opened flat and has been inching to higher levels but has been trading in a range. The index has surpassed the 20 DEMA and is sustaining at higher levels which indicates strength. Any dip towards lower levels of 15735 can be utilized as a buying opportunity.
India VIX is has cool off a bit and is at 20 level. However it needs to cool down below 18 level for stability and a directional move in the market.
Now till it holds below 15735 zone we can expect move towards 16000 and 16161, whereas support at placed 15735 and 15650. Market breadth is positive which indicates that there support based buying at lower levels.
BSE Fast Moving Consumer Goods index added 1 percent led by the Jyothy Labs, Bectors Food Specialities, Godrej Consumer Products
CLSA View On Maciro
Global research firm CLSA has maintained its 'underperform' rating on the stock with target at Rs 530 per share.
"Lower commodity costs aid margin but weak demand outlook is a concern," the brokerage firm said.
"We see its India revenue declining in low single digits while international constant currency revenue is likely to grow in the high teens," it added.
"Gross margin is likely to see a YoY recovery but should stay flat QoQ," CLSA said.
Gold Price Updates:
Gold hovered near a fresh seven-month low on Wednesday, with the dollar perched at a two-decade peak, as investors continued to snub bullion and look to the greenback for safety amid growing anguish over a worsening global economic outlook.
Spot gold was last up 0.1% at $1,766.54 per ounce at 0623 GMT, after it dipped to $1,762.45, its lowest since mid-December. U.S. gold futures firmed 0.1% to $1,764.60.
Market at 1 PM
Benchmark indices extended the gains and trading at day's high with Nifty around 15950.
The Sensex was up 574.61 points or 1.08% at 53708.96, and the Nifty was up 164.50 points or 1.04% at 15975.40. About 1572 shares have advanced, 1423 shares declined, and 126 shares are unchanged.
Mahindra Lifespaces launches project in Pune
Mahindra Lifespace Developers through its wholly owned subsidiary, Mahindra Bloomdale Developers Ltd, today launched Pune’s first Biophila-inspired homes in Pimpri.
Mahindra Lifespace Developers was quoting at Rs 426.35, down Rs 6.30, or 1.46 percent.
CLSA keeps sell rating on Bajaj Finance
Brokerage house CLSA has kept sell rating on Bajaj Finance and cut target to Rs 5,000 from Rs 6,000 per share.
The growth has slowed from pre-covid levels. The Q1 is a seasonally a strong quarter for company & it used to grow 10%+ QoQ.
AUM growth will sustainably slow down given its large customer base, reported CNBC-TV18.
GAIL to invest in start-ups operating in focus areas
In a bid to support the Start-Ups operating in identified Focus Areas, GAIL (India) Limited plans to invest in such companies through its Start-Up initiative 'Pankh'.
GAIL has now opened a fresh round for solicitation of Investment Proposals from the it Start-Ups operating in focus areas which mainly includes Natural Gas, Petrochemicals, Energy, Project Management, Logistics, Electric Mobility, Bio Manure Marketing, Nano
Materials, IoT and Data Mining, Environment, Health and Social, etc., company said in its release.
GAIL India was quoting at Rs 132.35, down Rs 1.55, or 1.16 percent on the BSE.
IndusInd Bank partners with MoEngage
IndusInd Bank today announced a strategic partnership with MoEngage, the insights-led customer engagement platform to deliver a differentiated digital experience across multiple customer journeys.
As part of the partnership, Induslnd Bank will leverage MoEngage’s technology platform to deliver ‘Gen Z’ digital banking experience to its customers. The Bank will be able to curate personalized content & recommendations across channels where the customers spend most of their time.
IndusInd Bank was quoting at Rs 830.55, up Rs 6.60, or 0.80 percent.
Ganesh Benzoplast signs lease deed for a plot of land at Jawaharlal Nehru Port Trust
Ganesh Benzoplast has signed the lease deed in respect of the allotment of a plot of land on lease for 25 years, at Jawaharlal Nehru Port Trust (JNPT).
The land, admeasuring 4.5 hectares (45,090 square meters), has been leased out to GBL from 2022 to 2047. GBL intends to build storage tanks at the site for the handling and storage of liquid cargo - edible oil, acetone, acetic acid, ammonia, propane etc.
Aurobindo Pharma arm gets USFDA approval
Aurobindo Pharma's wholly owned subsidiary Eugia Pharma Specialities has received a final approval from the US Food & Drug Administration (USFDA) to manufacture and market Triamcinolone Acetonide Injectable Suspension 200 mg/5 mL & 400 mg/10 mL.
BSE Bankex index rose 1 percent supported by the AU Small Finance Bank, Kotak Mahindra Bank, SBI
Dabur's India business expected to report high single digit revenue growth
Dabur's India business has been fairly resilient and is expected to report high single digit revenue growth on a very high base of 35.4% revenue growth in Q1 FY22. This is backed by mid-single digit volume growth.
Food & Beverages vertical has seen strong double-digit growth in the quarter on the back of improving out of home consumption, innovation, and intense summer season.
Home and Personal Care portfolio is expected to record high single to low double-digit growth on a high base of 26.1 % growth in Q1 FY22.
Healthcare vertical is expected to report a decline over last year's high base as the business had registered a growth of 30% in Q1FY22 led by the surge of Delta variant of Covid-1 9 during the quarter.
Bernstein View on Bajaj Finance
Research firm Bernstein has maintained outperform rating on Bajaj Finance with a target at Rs 9,440 per share.
The company has delivered a healthy performance driven by strong balancesheet growth.
Its core AUM grew 28 percent YoY and 6 percent QoQ.
The detailed updates about digital transformation & asset quality are the key to monitor, reported CNBC-TV18.
Bajaj Finance was quoting at Rs 5,836.00, up Rs 173.95, or 3.07 percent on the BSE.
Godrej Consumer Products expect to deliver early double-digit sales growth
Godrej Consumer Products expect to deliver early double-digit sales growth on a high base, in India. Our 3-year CAGR remains robust and in early double-digits.
We would have mid-single digit volumes drop on a high base, with a 3-year volume CAGR close to mid-single digits, company said.
We witnessed a mixed performance in our Personal Care and Home Care categories. Personal Care sustained its strong double-digit growth trajectory with a 2-year CAGR also in double-digits, led by both Personal Wash and Hair Colours.
Home Care witnessed a low single- digit sales drop on a high base. However, the 2-year CAGR remained at a high single digit figure, it added.
ED summons crypto exchanges, seeks customer transaction details
:
Crypto exchanges including CoinDCX, WazirX and Coinswitch Kuber have been served notices by the Directorate of Enforcement (ED) in cases of money laundering and foreign exchange violations earlier in the week, according to people with knowledge of the matter.
“Exchanges have been summoned regularly for the last two years. We are asked for customer data, transaction details and usually called to the office to explain the data later,” said a senior executive of an exchange. Apart from ED and FEMA, executives of these exchanges say that multiple other agencies are also probing various details.
Market update at 11 AM: Sensex is up 415.78 points or 0.78% at 53550.13, and the Nifty added 106 points or 0.67% at 15916.90.
Nifty Information Technology index rose 0.7 percent led by the L&T Technology Services, L&T Infotech, Mindtree
KPI Green Energy bags order
KPI Green Energy has received the biggest order for executing solar power project of 23.60 MWdc capacity from Nouveau Jewellery LLP and 3 MWdc capacity from Nouveau Diamonds Manufacturing India LLP. The order is under 'captive power producer (CPP)' segment of the company.
Morgan Stanley View on Bajaj Finance
Broking house Morgan Stanley has kept overweight rating on the stock with a target at Rs 8,000 per share.
It has reported healthy core AUM growth and highest customer acquisition ever. Its customer franchise grew to 60.3 million, while new loans were at 7.4 million.
The capital to risk (Weighted) assets ratio moderated to 26.2 percent, reported CNBC-TV18.
Motilal Oswal on Marico:
After achieving only ~ 6% sales CAGR over FY15–20, Marico's sales momentum is better now than in the past, with double-digit sales CAGR expected over FY20–24. This is likely to sustain beyond FY24 as well, propelled by: a) the ongoing topline growth momentum in each of MRCO's core segments, b) significantly higher growth rates as well as targets in the Foods portfolio, and c) the Rs 4.5-5b targeted from its 'digital first' range of products.
The much-needed diversification could lead to higher multiples than in the past.
Valuations at 43.6x/36.9x FY23E/FY24E EPS appear inexpensive given the potential of strong earnings growth (v/s earlier) and a healthy ROE of over 30%.
We maintain our buy rating on the stock with a target price of Rs 600.
