Morning Notes
13th Aug, 2019
 

Trading Range:

Nifty opened gap up at 11088 on Friday and made a high and low of 11181 and 11063 respectively before closing positive at 11110.

Review/Outlook:

For the day, support for Nifty exists at 11060 and 11000 levels whereas resistance for Nifty stands at 11170 and 11240 levels.

Review/Outlook:

Bank Nifty opened gap up at 28294, made a high of 28603, low of 28252, and closed positive at 28432. For the day, support for Bank Nifty exists at 28200 and 28000 levels whereas resistance for Bank Nifty stands at 28600 and 28800 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 37,583 +0.68
Nifty 11,110 +0.70
BSE 200 4,639 +0.72
BSE Midcap 13,670 +0.77
BSE Smallcap 12,699 +1.00
Dow Jones 25,898 -1.48
NASDAQ 7,863 -1.20
 

DERIVATIVES INDICATORS FOR AUG 13, 2019:

NIFTY 11109.65 (+77.20) (+0.70%)
NIFTY AUG FUTURE 11122.95  (13.30 Points Premium)
NIFTY PCR - OI 1.24(+0.03)
NIFTY OPEN INTEREST 2.01Cr. (-2.58%)
INDIA VIX 15.84 (-1.54%)
NIFTY ROLLOVER 11%

NIFTY OPTIONS ACTIVITY (29-AUG SERIES)

CALL 11200 CE -2.26 lac Shares
CALL 11300 CE -2.91 lac Shares
PUT 11100 PE +2.41 lac Shares
PUT 10900 PE -2.29 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 16,061 +1.99
Bankex 32,115 +0.97
PSU 6,586 -0.45
Healthcare 12,694 -0.07
IT 15,907 -0.28
 
Market Turn Over (`cr)
Index 09/08 08/08
BSE Cash 3,471 2,454
NSE Cash 35,169 34,806
NSE F&O 868,188 2,772,449
BSE Delivery % 37.42 64.06
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 60.40 37.62
BSE 200 60.20 38.81
BSE 500 63.07 35.93
Total BSE 58.62 35.81
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 54.73 -0.20
Gold Rs./ 10 Gms 38241.00 +0.66
Silver Rs./ Kg 43666.00 +0.79
Rs.- US $ 71.32 +1.19
Rs.- Euro 80.01 +1.48
FII (Rs cr )
09/08* 08/08*
FIIs -1065.59 -511.78
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       47,340.00       3,535.62       52,260.00       3,806.62    2,72,901.00     21,549.85    (271.00)
Index Options  26,68,416.00  1,79,008.66  26,55,615.00  1,77,811.72    6,94,612.00     53,859.04  1,196.94
Stock Futures    2,69,015.00     14,382.77    2,84,305.00     14,335.35  15,52,839.00     91,615.40       47.42
Stock Options    1,16,805.00       6,473.76    1,16,513.00       6,432.20       80,848.00       4,456.39       41.56
Total  31,01,576.00  2,03,400.81  31,08,693.00  2,02,385.89  26,01,200.00  1,71,480.68  1,014.92
Corporate News
Sources said that Dewan Housing Finance (DHFL) has sought an immediate funding of Rs 15,000-crore from banks for on-lending to retail customers as well as to project developers. (BL).
The Rs.16,000 crore diversified conglomerate Emami will pare its entire debt at the group level, which currently stands at Rs.2,600 crore, over the next 9 months, a top company official said. (ET).
Natco Pharma is focusing on filing of cancer treatment drugs in China, the world’s second largest pharmaceutical market, as part of its strategy to diversify business in various emerging markets amid headwinds in the US. In more news, Natco Pharma Ltd has announced the completion of a regulatory inspection from the United States Food and Drug Administration (USFDA) for its Active Pharmaceutical Ingredient (API) facility in Mekaguda Village near Hyderabad. The inspection was conducted during August 5-9, and the facility received six observations mostly procedural in nature, the company stated. (BL).
Battling severe liquidity crunch, BSNL plans to aggressively chase outstanding dues from its enterprise clients, and is hoping to recover the bulk of over Rs 3,000 crore receivables in the next two-three months, its chairman said. (ET).
Tata Steel is looking at an over 33 per cent reduction in capex across Indian and European operations, following the global economic slowdown and reduced cash flows. The capital expenditure, which was estimated at Rs.12,000 crore for this fiscal, will be reduced to Rs.8,000 crore. (ET).
GMR Infrastructure Limited plans to seek nod of shareholders to raise up to Rs.2,500 crore in one or more tranches. (BL).
Credit rating agency Care has downgraded Vodafone Idea to CARE A with negative outlook on account of weak financial performance. (BS).
Maruti Suzuki India (MSIL) on Friday said it has started bookings of the upcoming premium multi-purpose vehicle (MPV) XL6 at Rs.11,000 and the official launch will happen on August 21. (ET).
State-run oil refiner Hindustan Petroleum Corporation Ltd (HPCL) has finally agreed to recognize Oil and Natural Gas Corporation Ltd (ONGC) as its promoter after the Securities and Exchange Board of India (SEBI) warned of “appropriate action” if the market regulator’s advice on the issue was not heeded by August 13. (BS).
Birla Corporation Ltd, the flagship company of the MP Birla Group, is looking to scale up cement manufacturing capacity by over 60 per cent to 25 million tonnes (mt) from the current 15.5 mt in the next four to five years. (BL).
FMCG major Britannia Industries is looking at a 4-5 per cent price hike across categories to offset a similar rise in raw material costs. According to Varun Berry, Managing Director, Britannia, price hikes will be across specific categories, or, in “select premium” range or across specific geographies. (BS).
Reliance Industries Ltd (RIL) will sell a 20 per cent stake in its oil-to-chemicals business to Saudi Aramco at an enterprise value of $75 billion, making it one of the biggest Foreign Direct Investment (FDI) deal in the country. (ET).
Tech Mahindra will pay $70 million (about Rs 490 crore) to acquire 65 per cent stake in United States (US)-based strategic design consultancy firm Mad*Pow. (BL).
Jaguar Land Rover (JLR), a part of Tata Motors, has reported a 5 per cent increase in total sales at 37,945 units in July as compared with year-ago period. Sales of Jaguar brand were at 11,386 units during the month, up 3.6 per cent from the same month last year, Tata Motors said in a regulatory filing. Land Rover sales were at 26,559 units, up 5.6 per cent from the same month last year, it added. (BL).
Corporate Quarterly Earnings
Future Enterprises Ltd on Saturday reported narrowing of its consolidated net loss to Rs 8.59 crore for the quarter ended June 2019. The company had posted a consolidated net loss of Rs 16.80 crore in the year-ago period, Future Enterprises Ltd said in a BSE filing. However, consolidated total income of the company increased to Rs 1,424 crore, from Rs 1,353.31 crore in the year-ago period. Consolidated total expenses increased to Rs 1,440.93 crore, as compared to Rs 1,388.15 crore earlier. (BL).
Cadila Healthcare Ltd posted standalone net profit of Rs 79 crore for the quarter ended June 2019, sharply down by about 75 per cent from Rs 310 crore in the corresponding quarter last year. Total standalone revenues from operations fell to Rs 1,344 crore for the quarter as against Rs 1,505 crore reported in the same quarter last year. (ET).
Real estate player Sobha Limited has reported a 72.24 per cent rise in profits on a consolidated basis at Rs.90.60 crore for the first quarter (Q1) of FY 2019-20 against Rs.52.60 crore recorded in the same period last year. The company’s income is also higher by 95.55 per cent at Rs.1193.10 crore (Rs.610.10 crore). EPS for the quarter stood at Rs.9.55 compared with Rs.5.55 last year. (ET).
NHPC has reported a standalone net profit of Rs.881 crore for the first quarter of the current fiscal — up 19 per cent from Rs.738 crore reported during the corresponding quarter last year. Gross generation was up by 22 per cent to 8,485 MUs (million units) for the quarter under review, while sales rose to Rs.2,421 crore (Rs.2,138 crore). The company has signed an MoU with the Indian Army to construct underground caverns and semi-underground bunkers along the border with China and Pakistan. NHPC said that a final dividend of 75 paise per equity share of Rs.10 each has been recommended, amounting to Rs.753.38 crore, subject to shareholders’ approval. (BL).
NCC Limited has posted a lower profit of Rs 81.32 crore for the first quarter ended June 30, 2019 as against a profit of Rs 103.67 crore it logged during the corresponding quarter last year on a standalone basis. The Hyderabad-based construction company achieved a turnover of Rs 2212.70 crore in the first quarter as against Rs 2389.14 crore in the corresponding quarter of the previous year, a decrease of 7% on year-on-year basis. On a consolidated basis, the company has reported a profit of Rs 72.27 crore and a turnover of Rs 2371.51 crore in the first quarter, as against a profit of Rs 102.16 crore and turnover of Rs 2530.81 crore in the corresponding quarter of the previous year. (ET).
Natco Pharma Ltd’s net profit decreased 21 per cent at Rs 143 crore in the first quarter ended June 30, 2019 compared to Rs 181 crore earned in the corresponding quarter of the previous financial year. The total revenue of the Hyderabad–based company declined 10.65 per cent at Rs 513 crore as against Rs 574 crore in the year ago period. However, the amount of Rs 47.40 crore received as upside sharing incentive from investor CX Securities is recognised as an increase in equity and not considered as income in Profit & Loss, as per applicable accounting framework. The Board of Directors had recommended an interim dividend of Rs 1.25 per equity share of Rs 2 each. (ET).
NTPC's revenue in for the quarter grew 6.6% yoy to Rs24,192.6cr. EBITDA stood at Rs6,452.4cr, up 8.4% yoy. BIDTA margin expanded marginally by 44bps yoy to 26.7%. On account of adverse movement in regulatory deferral account balances, net profit for the quarter was flat on yoy basis to Rs2,602.8cr. (BL).
GAIL India Ltd.'s Revenue grew by 6% yoy to Rs18,463cr against Rs17,418cr in Q1FY19. EBITDA for the quarter grew by 2% yoy to Rs2,410cr against Rs2,363c. EBITDA margin declined by 52bps yoy to 13.1%. Net profit for the quarter grew by 2.2% yoy to Rs1,288cr against Rs1,259cr yoy. (ET).
Hindalco Industries Ltd's Revenue declined by 5.1% yoy and 18.7% qoq to Rs10,055cr. EBITDA stood at Rs717cr, down 45.9% yoy and 20.5% qoq. EBIDTA margin contracted by 538bps yoy and 16bps qoq to 7.1%. Net Profit stood at Rs23cr. (BS).
Britannia Industries Revenue growth for the quarter stood at 6.2% yoy to Rs2,700.4cr. Due to higher other expenses, EBITDA growth was restricted to just 1.4% yoy to Rs394.7cr and EBITDA margin contracted by 69bps yoy to 14.6%. eported PAT declined by 3.7% yoy to Rs248.6cr on account of Rs15.6cr of extraordinary expense pertaining to voluntary retirement cost incurred in one of the subsidiaries of the company. Adjusting for that the Adj. PAT stood at 269.7cr, up 4.5% yoy. (ET).
Debt-ridden Reliance Communications on Friday reported widening of consolidated loss to Rs 366 crore in the first quarter ended June 30, 2019. The company had posted a loss of Rs 342 crore in the same period a year ago. The loss excludes interest of Rs 1,094 crore and foreign exchange variation of around Rs 33 crore during the reported quarter. Total income of RCom during the reported period declined to Rs 866 crore from Rs 1,008 crore a year ago. (BL).
State-owned Oil India Ltd (OIL) on Friday reported an 11 per cent drop in its June quarter net profit as it faced double whammy of falling oil prices and a dip in production. Net profit in April-June at Rs 624.80 crore was 11.15 per cent lower than Rs 703.22 crore net profit reported in the same period last year. Turnover too was lower at Rs 3,373.36 crore as compared to Rs 3,390.46 crore in the first quarter of the previous year. OIL got USD 66.33 for every barrel of crude oil it produced and sold in April-June 2019. This was lower than USD 72 per barrel price realisation a year back. (ET).
State-run firm BPCL on Friday reported 41.48 per cent fall in consolidated profit at Rs 1,799.59 crore from the June quarter against Rs 3,075.06 crore in the same period last year. Total income for the quarter came in at Rs 86,956.29 crore, down 4.01 per cent from Rs 83,605.07 crore in the year ago period. The company’s margins came in at 3.90 per cent compared with 6.9 per cent last year. Ebitda was Rs 2,981.9 crore against Rs 4,598 crore last year. (BL).
State-owned BHEL on Friday reported a consolidated net loss of Rs 218.93 crore for June quarter 2019-20 mainly due to lower revenues. The company had reported a profit of Rs 39.98 crore in the year-ago period, a BSE filing said. Total income of the company came down to Rs 4,673.38 crore in June quarter from Rs 6,116.21 crore a year earlier. (BL).
Tyre major MRF on Friday reported a 2.13 per cent rise in consolidated net profit to Rs 273.27 crore for the first quarter ended June 30. The company had posted a consolidated net profit of Rs 267.56 crore in the corresponding period last fiscal, MRF Ltd said in a regulatory filing. Its consolidated total income during the June 2019 quarter stood at Rs 4,576.66 crore as compared to Rs 3,954.51 crore in the year-ago quarter it added. (BL).
HIL Ltd has posted a lower profit of Rs.40.63 crore for the first quarter ended June 30 as against Rs.52.04 crore for the corresponding quarter of the previous year on a consolidated basis. The CK Birla Group company in the building material solutions space, logged a 53 per cent higher total income of Rs.768.10 crore, from Rs.501.24 crore in the same period last year. (BS).
Visaka Industries has posted a lower profit of Rs.23.07 crore during the first quarter ended June 30, against a profit of Rs.30.33 crore in the corresponding quarter of the previous fiscal. The company logged total income of Rs.354.31 crore (Rs.352.59 crore). The company reduced its debt by Rs.73 crore sequentially from March and by Rs.10 crore over June last year in spite of a capex of Rs.50 crore in FY2019. (ET).
HPL Electric has reported 12.16-per cent higher net profit at Rs.4.85 crore for the first quarter of the current fiscal, against Rs.4.32 crore profit reported in the corresponding quarter of the previous fiscal.The higher profit is despite a reported decline in revenue. Total income during the period under review stood at Rs.244.75 crore (Rs.257.10 crore). (BL).
Eros International Media Ltd on Monday reported a 54.87 per cent fall in consolidated net profit at Rs.27.05 crore for the quarter ended June 30, 2019. The company had posted a net profit of Rs.59.95 crore during the same period of the previous financial year. Total income during the reported quarter stood at Rs.210.29 crore as against Rs.223.57 crore in the year-ago period, down 5.93 per cent, the company said in a BSE filing. (BL).
GVK Power & Infrastructure Limited has posted a of Rs 132.78 crore for the first quarter ended June 30, 2019 as against a loss of Rs 54.29 crore on a consolidated basis. The Hyderabad-based infrastructure logged in total revenue of Rs 1042.12 crore as against Rs 1106.33 crore for the corresponding quarter of previous fiscal. In FY19, the company had closed with a total loss of Rs 306.83 crore and total revenues of Rs 4363.10 crore. It also has receivables aggregating to Rs 760.97 crore. The company also provided guarantees for loans amounting to Rs 7804.62 crore taken by GVK Coal as on June 2019. (ET).
The grounding of Jet Airways has helped the aviation industry improve its financials with SpiceJet reporting highest-ever net profit of Rs 261.7 crore during the first quarter of the current fiscal against a loss of Rs 38.1 crore during the same period last year. The airline said that the its total income rose to Rs 3,145.3 crore for the quarter ending June 2019 as against Rs 2,253.3 crore for the corresponding quarter last year. The company said that the operating revenues were at Rs 3,002.1 crore against Rs 2,220.4 crore for the corresponding quarter last year. On an EBITDA basis, profit is at Rs 747.5 crore as against Rs 100.5 crore for the corresponding quarter last year. Operating expenses were at Rs 2,883.6 crore as against Rs 2,227.9 crore for the corresponding period last year. (BL).
Economy and Sector News
Oil Marketing Companies (OMCs) in the country would procure biodiesel produced from used cooking oil (UCO) at a rate of Rs 51 per litre in first year, which would go up further to Rs 52.7 per litre and 54.5 per litre respectively in the second and third year, Petroleum and Natural Gas Minister Dharmendra Pradhan said on Saturday. (BL).
The National Company Law Appellate Tribunal (NCLAT) has allowed G R K Reddy, the promoter of Chennai-based infrastructure developer Marg Ltd, to submit a proposal to clear the dues of financial and operational creditors. (ET).
Rating agency CARE Ratings has revised its outlook to negative on the borrowing programmes of 11 solar power producers due to delayed payment to them by distribution companies in Telangana for electricity purchased. In a release on Monday, CARE Ratings said the 11 companies had a combined installed capacity of 574 MW. In more news, Leasing of warehousing spaces went up by 31 per cent to over 13 million sq ft across eight major cities in the first half of this year, while investment of more than USD 200 million was witnessed in the industrial and logistics real estate segment, according to property consultant CBRE. (BL).
The government is working on a proposal to allow 100 per cent FDI in contract manufacturing to attract overseas investments, sources said. According to the existing foreign investment policy, 100 per cent foreign direct investment (FDI) is permitted in the manufacturing sector under the automatic route. A manufacturer is also allowed to sell products manufactured in India through wholesale and retail channels, including through e-commerce, without government’s approval. In more news, Average spot power price is likely to be around Rs.3.40 per unit in August on account of higher supplies especially from hydro and wind energy segments. Moreover, supplies from hydro and wind energy (in Gujarat and Tamil Nadu) have increased,” a power sector expert 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 closed sharply lower on Monday, amid fears that ongoing tensions between the US and China could lead to a global recession. The Dow Jones Index closed at 25,898, down 389.73 points by 1.48%. The Standard & Poors 500 index closed at 2,883, down 35.56 points by 1.22%. The Nasdaq Composite Index closed at 7,863, down 95.73 points by 1.20%.

FTSE 100

UK markets finished lower on Monday with investor sentiment was dented by reports that Hong Kong airport had cancelled all flights after thousands of anti-government demonstrators descended on the building. The FTSE 100 index closed at 7,227, down 27.13 points by 0.37%.

 
 
Global Indices
12/08/2019 Clsg Chg%
Dow Jones 25,898 -1.48
NASDAQ 7,863 -1.20
FTSE 100 7,227 -0.37
Bovespa 101,915 -2.00
13/08/2019 Latest
(4:01AM IST)
Chg%
Nikkei 20,685 +0.44
Hang Seng 25,825 -0.44

Nikkei

Asian shares started trading in the positive on Tuesday in early morning trading as investors will be watching the US markets closely. Nikkei is currently trading at 20,685, up 91.47 points by 0.44%.

Precious Metals

Gold futures finished higher Monday, near a six-year peak above $1,500-an-ounce set last week, as the U.S.-China trade battle showed few signs of letting up, and as demonstrations in Hong Kong heightened fears about the health of global markets and economies.

Base Metals

Most base metals prices on the London Metal Exchange were little changed on Monday August 12, except zinc which rallied by nearly 2%.

Crude Oil

Oil futures erased early losses to pop higher Monday, appearing to shrug off worries over global economic growth that have been fanned by the deepening U.S.-China trade war.

 
 
 

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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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