Morning Notes
9th Aug, 2019
 

Trading Range:

Nifty opened gap up at 10899 on Thursday and made a high and low of 11058 and 10843 respectively before closing positive at 11032.

Review/Outlook:

For the day, support for Nifty exists at 10970 and 10910 levels whereas resistance for Nifty stands at 11090 and 11160 levels.

Review/Outlook:

Bank Nifty opened up at 27840, made a high of 28228, low of 27531, and closed positive at 28110. For the day, support for Bank Nifty exists at 27900 and 27700 levels whereas resistance for Bank Nifty stands at 28300 and 28500 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 37,327 +1.74
Nifty 11,032 +1.63
BSE 200 4,606 +1.49
BSE Midcap 13,566 +0.42
BSE Smallcap 12,574 +0.74
Dow Jones 26,378 +1.43
NASDAQ 8,039 +2.24
 

DERIVATIVES INDICATORS FOR AUG 09, 2019:

NIFTY 11032.45 (+176.95) (+1.63%)
NIFTY AUG FUTURE 11063.95  (31.50 Points Premium)
NIFTY PCR - OI 1.25(+0.27)
NIFTY OPEN INTEREST 2.06Cr. (-0.64%)
INDIA VIX 16.09 (-3.87%)
NIFTY ROLLOVER 11%

NIFTY OPTIONS ACTIVITY (29-AUG SERIES)

CALL 11100 CE -1.08 lac Shares
CALL 11000 CE -1.58 lac Shares
PUT 11000 PE +4.98 lac Shares
PUT 10800 PE +3.13 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 15,749 +2.77
Bankex 31,805 +1.37
PSU 6,615 +1.51
Healthcare 12,702 +1.05
IT 15,951 +1.98
 
Market Turn Over (`cr)
Index 08/08 07/08
BSE Cash 2,454 2,346
NSE Cash 34,806 34,186
NSE F&O 2,772,449 1,534,441
BSE Delivery % 64.06 41.63
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 81.19 17.82
BSE 200 78.61 20.90
BSE 500 69.06 30.34
Total BSE 52.77 41.76
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 52.82 +0.53
Gold Rs./ 10 Gms 37757.00 -1.21
Silver Rs./ Kg 43067.00 -1.63
Rs.- US $ 70.48 -0.98
Rs.- Euro 78.84 -1.15
FII (Rs cr )
08/08* 07/08*
FIIs -511.78 -1864.18
MFs - -

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

 
 
Corporate News
The troubled wind-turbine maker Suzlon Energy offered to repay about Rs.8,500 crore ($1.2 billion) to lenders as part of a bad-debt-resolution plan. (BL).
Maruti Suzuki India (MSIL) on Thursday launched BS-VI compliant of its urban multi-purpose vehicle (MPV) Ertiga priced at Rs.7.55 lakh (ex-showroom, Delhi). (ET).
JK Tyre & Industries on Thursday launched a one of a kind technology-based tool geared towards smart monitoring and maintenance of tyres called of ‘Treel’. (BL).
Adani Enterprises Ltd (AEL) has committed an investment of Rs.10,000 crore for its airports venture through its subsidiary, Adani Airports Ltd, to be made over seven years. (ET).
The resolution professional of Jet Airways Thursday sought more time from NCLT to pay salaries to employees saying he is awaiting permission from the lenders to dispose of some assets to generate funds. (ET).
Coal India managed to fetch premiums ranging between 33 per cent and 66 per cent over its notified price for different categories of auction sale during the quarter ended June 2019. E-auction offerings are currently being regulated to stock power plants with adequate fuel, which analysts say, may increase spot e-auction prices in the near future. (BL).
Coffee Day Enterprises on Thursday said it has appointed global accounting firm EY to scrutinize the books of accounts of the company and its subsidiaries. (BS).
Corporate Quarterly Earnings
Tata Chemicals on Thursday posted 19.47 per cent jump in consolidated net profit at Rs 312.59 crore for the first quarter of 2019-20 financial year on strong sales. The company's net profit stood at Rs 261.63 crore in the year-ago period. (BL).
Bharat Petroleum Corporation (BPCL) is likely to report tepid financial results on Friday for the quarter ended June 30. Brokerage firm Prabhudas Lilladher has projected 37.70 per cent year-on-year (YoY) fall in adjusted net profit on around 6 per cent YoY rise in net sales in Q1FY19. It also sees over 50 per cent dip in net profit on sequential basis. (ET).
Adani Enterprises on Thursday reported over sevenfold jump in consolidated net profit to Rs 570.14 crore for the quarter ended June 30, 2019 on the back of higher income. The Gautam Adani group company had clocked a profit of Rs 80.14 crore in the year-ago period, Adani Enterprises said in a BSE filing. The company in a statement said the net profit attributable to owners for June quarter 2019-20 increased to Rs 601 crore as against Rs 169 crore in the same period of 2018-19. This includes one-time income of Rs 328 crore recognized in the company's MDO (Mine Development and Operations) business. This includes one-time income of Rs 328 crore recognized in the company's MDO (Mine Development and Operations) business. (ET).
Hexaware Technologies posted a net profit of Rs 151.4 Crore, down 1.4% over the corresponding quarter last year for the quarter ended 30th June 2019. Revenues for the period were up 15.1% at Rs 1308.3 crore. In dollar terms, revenue was up 12% at $188.1 million, up 13% on a constant currency basis. (BL).
Drug firm Abbott India on Thursday reported 41.91 per cent rise in net profit to Rs 116.94 crore for the quarter ended June 30, 2019. The company had posted a net profit of Rs 82.40 crore for the year-ago period, Abbott India said in a filing to BSE. Total income for the quarter under review rose to Rs 1,028.49 crore as against Rs 866.68 crore for the same period a year ago. (ET).
Private sector City Union Bank has recorded a 14.8 per cent rise in its net profits for the April-June quarter to Rs 185.64 crore. The Tamil Nadu-based bank had recorded net profits at Rs 161.64 crore during year ago period. Net profits for the year ending March 31, 2019 were at Rs 682.85 crore. Total income for the April-June quarter grew to Rs 1,192.53 crore from Rs 1,018.61 crore registered same period last fiscal. (ET).
UltraTech Cement on Friday said its consolidated profit nearly doubled (up 91.44 per cent) to Rs 1,208 crore for the June quarter compared with Rs 631 crore in the same quarter last year. Net sales for the quarter rose 14.98 per cent to Rs 10,027 crore from Rs 8,720 crore in the year-ago period. (BL).
FMCG firm Emami on Thursday announced 47% jump in its first quarter profit after tax at Rs 39 crore on back of 6% growth in revenue at Rs 649 crore over the same period last fiscal. EBIDTA margins expanded by 110 bps. Emami's international business grew by 34% during the quarter led by a strong performance in SAARC and MENAP regions. Excluding the new acquisition Creme 21, international Blbusiness grew by 10%. (ET).
Despite a decline in its revenues, Godrej Properties reported a nearly two fold increase in consolidated net profit for the quarter ended June 30 at Rs 89.87 crore mainly on the back of decline in total expenses. The company had reported a net profit of Rs 34.25 crore in the corresponding quarter last fiscal. Its total income for the April-June 2019 quarter stood at Rs 713.84 crore as against Rs 1,066.73 crore, registering a decline of 33.08 per cent. (BS).
State-owned company NBCC on Thursday reported a 39 per cent decline in consolidated net profit for the quarter ended June 30 at Rs.51 crore, against Rs.83 crore in the previous-year period. Its total income declined to Rs.1,942 crore (Rs.2,308 crore). The NBCC board has recommended a final dividend of Rs.0.65 per equity share on a face value of Rs.1 per equity share for FY19. (ET).
Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd), a manufacturer of technical textiles, on Thursday announced a 4.9 per cent decline in its Q1 FY20 net sales to Rs.232.3 crore, against Rs.244.3 crore in Q1 FY19. Profit before tax fell 8.6 per cent to Rs.42.2 crore (Rs.46.2 crore). Net profit after tax dropped by 5.7 per cent to Rs.29.6 crore (Rs.31.4 crore). Its EPS declined 5.7 per cent to Rs.13.52. (BL).
TAKE Solutions reported a 15 per cent decline in net profit to Rs.46 crore for the quarter ended June 30, compared with Rs.54 crore in the corresponding quarter last year. Revenue increased by 25 per cent to Rs.583 crore (Rs.468 crore). During the quarter, two of the top five pharma companies renewed long-term multi-million-dollar contracts till 2022. (ET).
The profit after tax (PAT) of the Dredging Corporation of India (DCI) has gone up from Rs 1,664 lakhs the previous year to Rs 4,459 lakhs during 2018-19. The announcement was made in New Delhi on Thursday at the annual general meeting of the company. (BL).
Leading auto parts maker Sundram Fasteners has reported a 13 per cent drop in its net profit at Rs.93 crore for the quarter ended June 30, 2019 when compared with Rs.107 crore in the year-ago period. The earnings before interest, depreciation and taxes (EBIDTA) was down to Rs.177 crore as against Rs.193 crore in Q1 of previous fiscal, according to a statement. The company posted a lower revenue from operations at Rs.945 crore (Rs.969 crore), on the back of slowdown in the domestic market. (BL).
Economy and Sector News
Goldmedal Electricals, a manufacturer of fast-moving electrical goods, is planning to set up a manufacturing facility in Hyderabad. (BL).
India Inc on Thursday demanded a stimulus package of over Rs 1 lakh crore to kick-start investment cycle and revive the economy which is showing signs of a slowdown. Industry leaders also said that the government has assured them to take action soon to boost the economic growth. (ET).
Online restaurant guide and food ordering firm Zomato has laid off around 60 employees mainly from its customer support department in Gurugram on account of ‘redundancies’. (BL).
State-owned Uco Bank has invited Life Insurance Corporation of India (LIC) to acquire up to 15% stake in it as the bank is looking to pare government holding to below 75% as per market regulation. The Kolkata-based lender has a fortnight back written to the insurance giant seeking an investment about Rs 1000 equity to this end, Uco chief executive officer AK Goel said. (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 on Thursday finished at or near the best levels of the session — helping the S&P 500 and Nasdaq indexes turn positive for the week — as jitters over a potential trade and currency clash between Beijing and Washington gave way to greed for beaten-down assets. The Dow Jones Index closed at 26,378, up 371.12 points by 1.43%. The Standard & Poors 500 index closed at 2,938, up 54.11 points by 1.88%. The Nasdaq Composite Index closed at 8,039, up 176.33 points by 2.24%.

FTSE 100

UK markets finished higher on Thursday with sentiment buoyed by a surprise jump in Chinese exports, but the FTSE 100 underperformed its European peers as a host of stocks went ex-dividend. The FTSE 100 index closed at 7,285, up 87.20 points by 1.21%.

 
 
Global Indices
08/08/2019 Clsg Chg%
Dow Jones 26,378 +1.43
NASDAQ 8,039 +2.24
FTSE 100 7,285 +1.21
Bovespa 104,115 +1.30
09/08/2019 Latest
(5:56AM IST)
Chg%
Nikkei 20,720 +0.62
Hang Seng 26,121 +0.48

Nikkei

Asian shares pushed higher Friday as positive sentiment from a strong session on Wall Street outweighed a resurfacing of trade tensions. Treasury yields slipped and the yen ticked higher. Nikkei is currently trading at 20,720, up 126.94 points by 0.62%.

Precious Metals

Gold futures rose 0.5% to $1,505 an ounce on Friday.

Base Metals

The three-month nickel price on the London Metal Exchange continued its uptrend at the close of trading on Thursday August 8, cooling from an intraday high of $16,690 per tonne to close just short of $16,000 per tonne, while lead’s continued rise saw its outright price close at more than $2,000 per tonne.

Crude Oil

West Texas Intermediate crude gained 0.5% to $52.79 on Friday.

 
 
 

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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.

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