Morning Notes
01st Aug, 2019
 

Trading Range:

Nifty opened gap down at 11034 on Wednesday and made a high and low of 11145 and 10999 respectively before closing positive at 11118.

Review/Outlook:

For the day, support for the Nifty exists at 11040 and 10970 levels whereas resistance for Nifty stands at 11170 and 11240 levels.

Review/Outlook:

Bank Nifty opened down at 28575, made a high of 28980, low of 28530, and closed positive at 28876. For the day, support for Bank Nifty exists at 28700 and 28500 levels whereas resistance for Bank Nifty stands at 29000 and 29200 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 37,481 +0.22
Nifty 11,118 +0.29
BSE 200 4,634 +0.46
BSE Midcap 13,643 +0.72
BSE Smallcap 12,692 +0.34
Dow Jones 26,864 -1.23
NASDAQ 8,175 -1.19
 

DERIVATIVES INDICATORS FOR AUG 01, 2019:

NIFTY 11118.00 (+32.60) (+0.29%)
NIFTY AUG FUTURE 11132.20 (14.20 Points Premium)
NIFTY PCR - OI 1.09(+0.12)
NIFTY OPEN INTEREST 1.85Cr. (+2.21%)
INDIA VIX 13.66 (+0.38%)
NIFTY ROLLOVER 5%

NIFTY OPTIONS ACTIVITY (29-AUG SERIES)

CALL 11100 CE +3.55 lac Shares
CALL 11300 CE +2.29 lac Shares
PUT 11000 PE +3.34 lac Shares
PUT 11100 PE +1.31 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 15,472 +1.26
Bankex 32,689 +0.33
PSU 6,968 +1.36
Healthcare 12,704 +0.95
IT 15,733 +0.60
 
Market Turn Over (`cr)
Index 31/07 30/07
BSE Cash 2,668 2,278
NSE Cash 36,813 35,300
NSE F&O 1,525,427 1,360,912
BSE Delivery % 43.06 40.50
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 76.24 23.76
BSE 200 72.64 27.36
BSE 500 59.68 39.72
Total BSE 42.54 52.60
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 57.60 -1.67
Gold Rs./ 10 Gms 34517.00 -0.03
Silver Rs./ Kg 41227.00 -0.83
Rs.- US $ 69.19 +0.52
Rs.- Euro 76.59 -0.26
FII (Rs cr )
31/07* 30/07*
FIIs -675.36 -373.93
MFs - -

*Date refers to the day of activity and not the day on which it is reported.

 
Details Buy Sell Open interest at the
end of the day
Net Position
No. of
Contracts
Value
(Rs. Cr)
No. of
Contracts
Value
(Rs. Cr)
No. of
Contracts
Value
(Rs. Cr)
Value
(Rs. Cr)
Index Futures       59,796.00       4,241.89       71,371.00       5,387.21    1,90,096.00     14,780.77  (1,145.32)
Index Options  49,21,203.00  3,25,508.78  49,00,962.00  3,24,195.74    5,55,281.00     42,247.61   1,313.04
Stock Futures    2,46,980.00     13,913.25    2,30,236.00     13,226.66  14,36,538.00     85,976.36      686.59
Stock Options       94,676.00       5,760.26       93,773.00       5,723.56       54,674.00       3,076.39        36.70
Total  53,22,655.00  3,49,424.18  52,96,342.00  3,48,533.17  22,36,589.00  1,46,081.13      891.01
Corporate News
After nearly six months of negotiations with several strategic investors, which included Comcast and Sony Pictures, the Subhash Chandra-backed Essel Group has decided to sell 11 per cent promoter stake in Zee Entertainment (ZEEL) to Invesco Oppenheimer Developing Markets Fund. (BL).
The board of Coffee Day Enterprises has appointed former IAS officer and a member, SV Ranganath as the interim chairman of the company. In a press statement, it said the board takes note of a message from the wife of late VG Siddhartha, Malvika who is also on the board expressing support and trust in the company's management team. (ET).
Yes Bank Ltd’s credit rating has been cut for the second time this year by the local unit of Moody’s Investors Service-ICRA, stifling the lenders ability to boost capital buffers that have shrunk to near the lowest allowed by regulators. (BL).
Solar Industries plans to venture into the business of propulsion system for space application, which is synergistic with its current business of ammunition. (ET).
With Lanco’s 500-MW Teesta hydropower project under its umbrella, NHPC has become the first PSU to win an asset under the insolvency resolution framework. After clearance from the stressed asset’s Committee of Creditors (CoC), Power Ministry and Union Cabinet, NHPC’s resolution plan for the Lanco project was approved by the Hyderabad Bench of the National Company Law Tribunal Bench last Friday. (ET).
Wonder Cement, part of the RK Group, has set up its third cement plant at Nimbahera in Rajasthan’s Chittorgarh district, increasing its total production capacity to 11 million tonnes per annum (mtpa). The new plant, built in just a year with an investment of Rs.1,100 crore (taking the overall investment across the three units to Rs.4,100 crore), is designed to meet burgeoning domestic demand, the company said in a statement. (BS).
Godrej Appliances is looking at a 20 per cent growth this fiscal, thanks to renewed momentum in the consumer appliances business in the first quarter. The company is looking at a turnover of Rs.5,200 crore against Rs.4,300 crore last fiscal, said Kamal Nandi, Business Head and EVP, Godrej Appliances. (BL).
Mortgage major HDFC Wednesday announced reduction in retail loan pricing by 10 basis points across tenors and buckets of loans, both for new as well as existing borrowers, effective Thursday. For home loans up to Rs 30 lakh, the financier is offering 8.60 percent now. For women borrowers, the new rate is 8.55 percent, the largest mortgage lender said in a statement, adding the rate reduction will be applicable to existing borrowers as well. For loans above Rs 30 lakh and up to Rs 75 lakh, the new rates will 8.85 percent and 8.80 percent for women borrowers and for those above Rs 75 lakh, the prices will come down to 8.90 and 8.85 percent respectively, it said. (ET).
Corporate Quarterly Earnings
Tata Group retail firm Trent Ltd on Wednesday reported a consolidated net profit of Rs 36.32 crore for the first quarter ended June 2019. The company had posted a net profit of Rs 35.90 crore in the April-June period a year ago, Trent said in a BSE filing. Total income during the quarter under review stood at Rs 823.90 crore. It was Rs 622.75 crore in the corresponding quarter last fiscal. (BL).
Jagran Prakashan, the publisher of leading Hindi daily Dainik Jagran, Wednesday reported a 25.58 per cent decline in consolidated profit after tax to Rs 65.75 crore for the first quarter ended June, 2019. The company had posted a profit after tax of Rs 88.35 crore during the April-June quarter a year ago, Jagran Prakashan Ltd (JPL) said in a BSE filing. Its revenue from operations fell 3.15 per cent to Rs 588.28 crore during the quarter under review as against Rs 607.46 crore in the corresponding quarter a year ago. (ET).
Commercial vehicle major Ashok Leyland posted a 44 per cent dip in consolidated profit at Rs 247 crore in the first quarter of current fiscal. The company had posted a profit of Rs 443.32 crore in April-June quarter a year ago. The company's consolidated revenue from operations declined 8 per cent during the quarter under review to Rs 6,612.42 crore from Rs 7,193.79 crore in the corresponding quarter of 2018-19. (ET).
Business-to-business e-commerce firm Indiamart Intermesh posted a consolidated profit of Rs 31.4 crore for the quarter ended on June 30, 2019. The company had recorded a loss of Rs 56.7 crore in the same period a year ago. The total consolidated income of Indiamart increased by 37.5 per cent to Rs 161.6 crore during the reported quarter from Rs 117.5 crore in the corresponding period of 2018-19. (BL).
Tata Global Beverages Ltd (TGBL) on Wednesday posted a 10.56 per cent increase in its consolidated net profit to Rs 141.68 crore during the first quarter of 2019-20, on the back of strong sales. Its net profit had stood at Rs 128.14 crore in the corresponding quarter of the previous year, the company said in a regulatory filing. The company's total income rose to Rs 1,927.66 crore during the June 2019 quarter, compared with Rs 1,831.11 crore a year ago. (ET).
Gurugram-based Eicher Motors Wednesday reported a 21.5% decline in net profit at Rs 452 crore for the first quarter ended June 30, 2019. The company had posted net profit of Rs 576 crore in the corresponding period of the last financial year. Gurugram-based Eicher MotorsNSE 1.14 % Wednesday reported a 21.5% decline in net profit at Rs 452 crore for the first quarter ended June 30, 2019. The company had posted net profit of Rs 576 crore in the corresponding period of the last financial year. (ET).
Agrochemical company UPL on Wednesday reported a 57.8 per cent drop in June quarter consolidated profit at Rs 220 crore. Revenues of the company jumped 91.2 per cent to 7,906 crore from 4,134 crore a year ago . (ET).
Blue Dart Express Wednesday posted a 73.9 per cent drop in consolidated profit to Rs 5.99 crore for the quarter ended on June 30, 2019. The company had posted a consolidated profit of Rs 22.97 crore in the year-ago period, Blue Dart Express said in a filing to BSE. However, the consolidated income during April-June quarter increased to Rs 794.73 crore, from Rs 739.59 crore in the year-ago period. (BL).
State-run Allahabad Bank is back in black with Rs 128 crore net profit for the June quarter, backed by higher trading profit and fall in provisioning for bad loans. The bank had posted a net loss of Rs 1,944 crore in the year-ago period while made Rs 3,834 crore loss in the March quarter. The bank had posted a net loss of Rs 1,944 crore in the year-ago period while made Rs 3,834 crore loss in the March quarter. With improvement in asset quality, the bank’s provisions for bad loans fell to Rs 1,102 crore for June quarter from Rs 2,590 crore a year back. Gross non-performing assets (NPAs) ratio improved to 17.43% at the end of June compared with 17.55% on March. Net NPA ratio however slipped to 5.71% from 5.22% in the same period. (BL).
Indian Energy Exchange on Wednesday reported a 5.5 per cent decline in net profit to Rs 39.58 crore for the quarter ended June 30, 2019, mainly due to lower revenues. The company's net profit stood at Rs 41.89 crore in the quarter ended June 30, 2018, it said in a BSE filing. According to the statement, Indian Energy Exchange's (IEX) total income fell to Rs 69.66 crore in April-June quarter from Rs 74.18 crore a year ago. (BL).
Apollo Tyres on Wednesday reported 43.77 per cent dip in consolidated net profit at Rs 141.6 crore for the June quarter of 2019-20. The company had posted a net profit of Rs 251.84 crore for the same period of previous fiscal. Total income rose marginally to Rs 4,358.78 crore during April-June 2019 as compared with Rs 4,328.6 crore in the year-ago period, Apollo Tyres said in a statement. (BL).
Indian Oil Corporation posted 47.35 per cent year-on-year (YoY) fall in standalone net profit at Rs 3,596.11 crore in Q1FY20 against Rs 6,831.13 crore in the same period last year. Revenue from operations inched higher to Rs 150,135.20 crore during the quarter under review against Rs 1,49,746.88 crore in the same quarter last year. (BL).
Future Retail, that operates Big Bazaar supermarket chain posted a 6 per cent increase in net profit during first quarter, lowered due to accounting change. Profit after tax was Rs 170 crore for April-June excluding leasing accounting impact, growing 11 per cent while sales rose 13.5 per cent to Rs 5149 crore. The company said same-store-sales for its flagship Big Bazaar stood at 8.1 per cent for the quarter while Future Retail’s like-to-like growth for the period was 8.3 per cent. The company opened 82 new small format stores and shut 38 loss making ones during the quarter. In the last one year, 1.4 million sq ft area has been added for 434 stores opened, it said in a statement. The retailer's gross margin improved 20 basis points to 27.6 per cent. (BL).
State-run United Bank of India on Tuesday reported a net profit of Rs 105 crore for the April-June quarter of this fiscal on the back of a rise in core income and fall in non-performing assets. The Kolkata-headquartered lender had registered a net loss of Rs 388.68 crore during the April-June quarter of the previous fiscal year. Total income in the first quarter rose to Rs 3,003.13 crore from Rs 2,549.71 crore in the year-ago quarter, United Bank of India said in a regulatory filing. During the quarter, the bank's interest income increased to Rs 2,374.39 crore from Rs 2,155.02 crore while income from other sources jumped to Rs 628.74 crore from Rs 394.69 crore in the year-ago quarter. The bank brought down its bad assets substantially as the gross non-performing assets (NPAs) fell to 15.89 per cent of gross advances as on June 30, 2019, from 22.73 per cent of gross advances as at end of June 2018. (BL).
City-based Carborundum Universal Ltd reported 22 per cent drop in consolidated net profit to Rs.51 crore for the first quarter ended June 30, 2019, against Rs.65 crore in the same quarter last year. Revenue increased by 6 per cent to Rs.664 crore (Rs.626 crore) driven by growth in the electro minerals and ceramics segments. At a standalone level, sales grew by 3 per cent. (BL).
Economy and Sector News
The Research & Development (R&D) infrastructure and other resources of public-funded entities will soon be opened up for private firms and individuals to carry out their research. In more news, Coffee shipments from India, Asia’s third-largest producer, and exporter, remained flat at 2,38,669 tonnes so far this calendar year with maximum shipments made to Italy, as per the Coffee Board. The country had shipped 2,37,780 tonnes of coffee bean during January-July in the previous year, its data showed. (BL).
The Union Cabinet on Wednesday increased the nutrient based subsidy (NBS) rate for sulphur by 31 per cent to Rs.3.562 per kg from Rs.2.722 in 2018-19 while keeping that for nitrogen, phosphorus and potassium unchanged. In more news, Powered by prodigious flows from the Bay of Bengal, the monsoon generated a significant amount of rain in July, cutting down the rainfall deficit from a peak of 33 per cent to a single digit (9 per cent) by the month-end for the country as a whole. (ET).
Fiscal deficit for the first three months of the current financial year has reached more than 61 per cent of the Budget Estimate, according to government data released on Wednesday. At 3.3 per cent of GDP (Gross Domestic Product), the government has budgeted over ₹7-lakh crore as fiscal deficit for the current fiscal. In more news, After a strong showing in the first two months of this fiscal, the growth of eight core industries slowed sharply in June, at just 0.2 per cent. The eight core industries — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity — had grown 7.8 per cent in June 2018. In April 2019, the core sector output had grown 6.3 per cent, and had remained a robust 5.1 per cent in May. For June, four sectors — crude oil (-6.8 per cent), natural gas (-2.1 per cent), refinery products (-9.3 per cent) and cement (-1.5 per cent) — saw a sharp contraction. (BL).
Government receipts have reached just about 14 per cent of the Budget estimate for financial year 2019-20 in the April-June quarter, indicating that economic slowdown has already begin impacting revenues. As per a government statement, India received Rs 2,89,650 crore as total receipts up to June 30, which is 13.92 per cent of corresponding budget estimate of FY20. The total receipt comprises Rs 2,51,411 crore tax revenue (Net to Centre), Rs 33,475 crore of non-tax revenue and Rs 4,764 crore of non-debt capital receipts. Non-debt capital receipts consists of recovery of loans (Rs 2,407 crore) and disinvestment proceeds (Rs 2,357 crore). In more news, Mining giant Vedanta Ltd contributes around 0.40 per cent or Rs 67,554 crore to India's GDP through its operations, according to a study released on Wednesday. (ET).
* ET - Economic Times, BS - Business Standard, BL - Business Line, TOI - Times of India, Mint, IE - Indian Express, BT - Business Today, IE - Indian Express
Global Markets
 

DJIA and NASDAQ Composite

US markets closed sharply lower Wednesday with investors disappointed that the Federal Reserve cut interest rates in order to cushion the economy from the effects of President Trump’s trade war with China, but refrained from suggesting further rate cuts were on the way. The Dow Jones Index closed at 26,864, down 333.75 points by 1.23%. The Standard & Poors 500 index closed at 2,980, down 32.80 points by 1.09%. The Nasdaq Composite Index closed at 8,175, down 98.20 points by 1.19%.

FTSE 100

UK markets were left nursing moderate losses on Wednesday amid mixed reports out of the US-China trade talks in Shanghai and ahead of interest rate decisions by the Federal Reserve later in the session and the Bank of England the next day. The FTSE 100 index closed at 7,587, down 59.99 points by 0.78%.

 
 
Global Indices
31/07/2019 Clsg Chg%
Dow Jones 26,864 -1.23
NASDAQ 8,175 -1.19
FTSE 100 7,587 -0.78
Bovespa 101,812 -1.09
01/08/2019 Latest
(5:53AM IST)
Chg%
Nikkei 21,362 -0.74
Hang Seng 27,778 -1.31

Nikkei

Asian shares opened lower on Thursday as the U.S. Federal Reserve poured cold water on market expectations of a lengthy easing cycle after delivering a 25-basis-point cut. Nikkei is currently trading at 21,362, down 159.95 points by 0.74%.

Precious Metals

Spot gold XAU= bounced from a two-week trough to add 0.1% to $1,414.46 an ounce on Thursday.

Base Metals

The three-month nickel price on the London Metal Exchange climbed by 1.4% at the close of trading on Wednesday July 31, shaking off downward momentum emanating from an expected US Federal Reserve interest rate cut and subsequent dollar incline.

Crude Oil

U.S. crude futures CLc1 were off 68 U.S. cents at $57.9. Brent had settled up 0.7% at $65.17 on Thursday.

 
 
 

Retail Research Desk:

Akhil Rathi D: 91 22 2858 3210
Hrishikesh Yedve D: 91 22 2858 3207
Vrinda Aditya D: 91 22 2858 3209
Neeraj Sharma D: 91 22 2858 3208
Rohan Gawale D: 91 22 2858 3213
Dhiral Shah D: 91 22 2858 3211

Email: retailresearch@acm.co.in

Research Analyst Registration Number:
INH000002483
CIN: U65990MH1993PLC075388

 
 

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Information pertaining to Asit C. Mehta Investment Interrmediates Limited (ACMIIL): ACMIIL is a SEBI registered Stock Broker, Merchant Banker and Depository Participant. It is also a AMFI registered Mutual Fund Distributor. It does not have any disciplinary history. Its associate/group companies are Asit C. Mehta Commodity Services Limited, Asit C. Mehta Realty Services Pvt. Ltd, Asit C. Mehta Forex Pvt. Ltd, Nucleus IT Enabled Services , Asit C. Mehta Financial Services Limited (all providing services other than stock broking and merchant banking).

Disclosures
ACMIIL/its associates and its Research analysts have no financial interest in the companies covered on the report. ACMIIL/ its associates and Research analysts did not have actual/beneficial ownership of one per cent or more in the companies being covered at the end of month immediately preceding the date of publication of the research report. ACMIIL/its associates or Research analysts have no material conflict of interest, have not received any compensation/benefits for any reason (including investment banking/merchant banking or brokera3ge services) from either the companies concerned/third parties with respect to the companies covered in the past 12 months. ACMIIL/its associates and research analysts have neither managed or co-managed any public offering of securities of the companies covered nor engaged in market making activity for the companies being covered. Further, the companies covered neither are/nor were a client during the 12 months preceding the date of the research report. Further, the Research analyst/s covering the companies covered herein have not served as an officer/director or employee of the companies being covered.

Disclaimer:
This report is based on information that we consider reliable, but we do not represent that it is accurate or complete and it should not be relied upon such. ACMIIL or any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in the report. To enhance transparency we have incorporated a Disclosure of Interest Statement in this document. This should however not be treated as endorsement of the views expressed in the report.