Morning Notes
16th Aug, 2019
 

Trading Range:

Nifty opened gap up at 11003 on Wednesday and made a high and low of 11078 and 10935 respectively before closing positive at 11029.

Review/Outlook:

For the day, support for Nifty exists at 10960 and 10900 levels whereas resistance for Nifty stands at 11070 and 11140 levels.

Review/Outlook:

Bank Nifty opened gap up at 27886, made a high of 28107, low of 27727, and closed positive at 28019. For the day, support for Bank Nifty exists at 27800 and 27600 levels whereas resistance for Bank Nifty stands at 28200 and 28400 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 37,312 +0.96
Nifty 11,029 +0.95
BSE 200 4,599 +0.95
BSE Midcap 13,477 +0.85
BSE Smallcap 12,570 +0.41
Dow Jones 25,579 +0.39
NASDAQ 7,767 -0.09
 

DERIVATIVES INDICATORS FOR AUG 16, 2019:

NIFTY 11029.40 (+123.55) (+0.95%)
NIFTY AUG FUTURE 11028.15 (1.25 Points Discount)
NIFTY PCR - OI 1.20(+0.24)
NIFTY OPEN INTEREST 2.02Cr. (+1.22%)
INDIA VIX 16.35 (-7.99%)
NIFTY ROLLOVER 14%

NIFTY OPTIONS ACTIVITY (29-AUG SERIES)

CALL 11200 CE -0.76 lac Shares
CALL 11000 CE -1.17 lac Shares
PUT 10900 PE +2.43 lac Shares
PUT 11000 PE +3.02 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 15,568 +0.84
Bankex 31,652 +1.00
PSU 6,503 +1.15
Healthcare 12,513 -0.52
IT 15,604 +0.65
 
Market Turn Over (`cr)
Index 14/08 13/08
BSE Cash 5,787 2,365
NSE Cash 33,437 37,388
NSE F&O 2,454,436 1,364,010
BSE Delivery % 53.69 39.40
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 9.90 90.10
BSE 200 14.43 85.57
BSE 500 19.80 79.80
Total BSE 31.30 63.32
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 54.80 +0.61
Gold Rs./ 10 Gms 38163.00 +1.03
Silver Rs./ Kg 44079.00 +2.23
Rs.- US $ 71.66 +0.76
Rs.- Euro 79.61 +0.16
FII (Rs cr )
14/08* 13/08*
FIIs -560.13 -746.34
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       70,996.00       5,236.73       59,709.00       4,322.54    2,85,779.00     22,409.25     914.19
Index Options  68,62,927.00  4,35,110.03  68,13,188.00  4,31,198.42    7,01,281.00     54,147.79  3,911.61
Stock Futures    2,51,054.00     13,751.86    2,48,309.00     13,553.92  15,75,525.00     91,062.06     197.94
Stock Options    1,07,867.00       5,967.65    1,08,210.00       6,027.10       99,596.00       5,539.60      (59.45)
Total  72,92,844.00  4,60,066.27  72,29,416.00  4,55,101.98  26,62,181.00  1,73,158.70  4,964.29
Corporate News
Coffee Day Enterprises Ltd’s board on Wednesday approved the sale of its 120-acre Global Village Tech Park here to private equity firm Blackstone in a transaction valued at Rs.2,600-3,000 crore. (BL).
Sun Pharmaceutical Industries on Wednesday said it has entered into a global licensing agreement with the CSIR Indian Institute of Chemical Technology, Hyderabad (CSIR-IICT), for patents related to certain compounds with potential therapeutic activity across multiple indications in Sun Pharma’s speciality focus areas. (ET).
Hero Motors Ltd aims to be the world’s largest electric bicycle maker in the next 12 quarters, said Pankaj M Munjal, Chairman and Managing Director, Hero Motors Company (HMC). (BL).
Harsh Vardhan Lodha, Chairman, Birla Corporation Ltd, has approached the Calcutta High Court against the APL (Administrator pendente lite) Committee’s decision not to support his re-election to the board of two MP Birla Group companies. (ET).
Oil and Natural Gas Corporation Ltd (ONGC) will invest close to Rs.83,000 crore on 25 major projects. ONGC Chairman and Managing Director (CMD) Shashi Shanker said. (ET).
State-owned CIL’s 54 coal mining projects are facing delay due to various reasons such as contractual issues and delay in green clearances among others, the world’s largest coal miner said. (BL).
Greenko Energy Holdings has closed a 350 million corporate dollar bond offer at 6.25 per cent to refinance its debt at corporate level. To refinance debt of over 1.4 billion from Indian banks, NBFCs and mutual funds, the Hyderabad-based company had recently raised $950 million in one of the largest overseas green bond offer made by an Indian renewable energy firm. (BS).
Home-grown FMCG company Marico hopes to complete the acquisition of male grooming brand, Beardo, by the end of this fiscal. Post acquisition, Beardo will be a wholly-owned subsidiary. (ET).
If non-performing assets have made banks financially weak, poor work culture and non-performance of workers have slowed down the revival of public sector banks -- at least, that’s what general perception is. Mumbai-based Union Bank of India has taken steps to address this issue. In an inter-office memo issued by its human resource department, the state-owned lender has directed all its regional and zonal heads to identify the non-performing employees and monitor their performance over the next three quarters. (BS).
Former Axis Bank chief Dharmesh Mehta along with clutch of investors have acquired 100 per cent stake in IDFC Securities Ltd. (BS).
Corporate Quarterly Earnings
The country’s largest maker of dry-cell batteries, Eveready Industries Ltd, saw a 63 per cent decline in net profit to Rs.6.85 crore for the first quarter ended June 30, 2019. Profit in the corresponding quarter last fiscal stood at Rs.18.35 crore. The decline came even as the company witnessed a 16 per cent dip in operating income to Rs.321 crore for Q1FY20. The income in the year-ago-period stood at Rs.383.34 crore. (BL).
India Tourism Development Corporation (ITDC) has reported a consolidated net profit of Rs.45 lakh for the first quarter ended June 30, a decline of 93.4 per cent from net profit of Rs.6.82 crore recorded in the corresponding quarter last fiscal. The total income of the company stood at Rs.67.37 crore in the quarter under review as compared to Rs.78.39 crore in the same quarter last year. (ET).
Tamil Nadu Newsprint Ltd (TNPL) reported a three-fold increase in net profit to Rs.77 crore for the first quarter ended June 30, 2019, as against Rs.25 crore during the corresponding quarter of previous financial year. Revenue was up three per cent to Rs.961 crore (Rs.935 crore). (ET).
Manufacturer and seller of branded TMT Bars Kamdhenu Limited has reported a consolidated net profit of Rs.6.08 crore for the quarter ended June 30, 2019. This was 2.9 per cent higher than the net profit of Rs.5.91 crore recorded in the corresponding quarter last fiscal. The total income of the company stood at Rs.223.02 crore for the quarter under review. The total income was Rs.399.83 crore in the same quarter last fiscal. (BL).
Brigade Enterprises Ltd has posted lower profits on consolidated basis by 26.39 per cent at Rs.46.46 crore for the first quarter of FY 2019-20 as against Rs.63.12 crore recorded in the same period last year. The company’s income is higher by 1.28 per cent to Rs.716.99 crore as against Rs.707.88 crore in the same period last year. EPS for the quarter stood at Rs.3.03 compared with Rs.4.63 last year. (ET).
Grasim's Revenue for the quarter was up 4.4% yoy to Rs5,000.6cr. On account of higher raw material cost and operating expenses, EBITDA declined by 21.8% yoy to Rs843.7cr with 565bps yoy contraction in EBITDA margin which stood at 16.9%. During the quarter, company impaired its investment of Rs290.2cr in Aditya Birla Idea Payment Bank Limited (ABIPBL), reported as an exceptional item. Adjusting for the exceptional item, the Adj. PAT declined by 31.6% yoy to Rs439.5cr. (ET).
Spencer’s Retail Ltd on Wednesday reported 58% drop in net profit at Rs 93 lakh for the first quarter ending June, while revenue from operations went up by 14.6% at Rs 600.76 crore. The Kolkata-based food, grocery and apparel retailer said the profit will not be comparable since it has adopted Ind AS 116 - Leases from April 2019 using the modified retrospective approach, whereby the cumulative impact has been recognised on April1, 2019. It said previous period information has not been restated. The Kolkata-based food, grocery and apparel retailer said the profit will not be comparable since it has adopted Ind AS 116 - Leases from April 2019 using the modified retrospective approach, whereby the cumulative impact has been recognised on April1, 2019. It said previous period information has not been restated. (BL).
Jindal Steel and Power Ltd (JSPL) on Wednesday reported a consolidated net loss of Rs 87 crore during the first quarter ended June 30, mainly due to higher expenses. Jindal Steel and Power Ltd (JSPL) on Wednesday reported a consolidated net loss of Rs 87 crore during the first quarter ended June 30, mainly due to higher expenses. The company had posted Rs 110-cr consolidated net profit during the same quarter a year-ago, JSPL said in a BSE filing. (ET).
RP Sanjiv Goenka group's CESC on Wednesday said the company's consolidated net profit for the first quarter ended June 2019 was up 7.4 per cent to Rs 231 crore, as compared to Rs 215 crore in the corresponding quarter ended 2018. CESC's total income during the quarter was Rs 3257 crore against Rs 3007 crore in the corresponding period the year before. (BL).
Essar Shipping on Wednesday reported narrowing of its consolidated loss to Rs 20.92 crore for the quarter ended June 30. The consolidated income from operations of Essar Shipping during the April-June quarter fell to Rs 350.22 crore, over Rs 359.53 crore in the year-ago period, the company said in a filing to the BSE. (BS).
Hospitality major EIH Ltd is hit by general slowdown and high Goods and Services Tax (GST), a top company official said on Wednesday. The company which comes under The Oberoi Group said it has Rs 84.5 crore dues from the grounded Jet Airways. In the Q1FY'20, the company posted consolidated revenue of Rs 358.22 crore as compared to Rs 400.35 crore registered in the same quarter last year. (ET).
Suzlon Energy's consolidated net loss narrowed to Rs 336.88 crore in the June quarter, on account of lower expenses. The company had reported a loss of Rs 575.10 crore in the corresponding period of the previous financial year. The firm's total income dropped to Rs 851.09 crore, compared with Rs 1,289.94 crore a year ago. (BL).
Indraprastha Gas Standalone net profit in April-June at Rs 218 crore was higher than Rs 176 crore net profit in the same period of previous fiscal, the firm aid in a statement. Product wise, CNG recorded sales volume growth of 13 per cent, while piped natural gas (PNG) registered 12 per cent growth in the quarter as compared to corresponding quarter last year. Total gross sales value during the quarter rose 23 per cent to Rs 1,738 crore. (BL).
General Insurance Corporation GIC Re saw profit fell 86% to Rs 108 crore in the first quarter because of conservative provisioning towards agriculture. The insurer had registered a net profit of Rs 770 crore in the corresponding period of the last financial year. The reinsurer provided Rs 6,000 crore in the first quarter towards reserve for rainfall deficit in June. It has fully provided Rs 344 for IL&FS. Gross premium income of the company was 10.8 % with premium of Rs 20,813.12 crore from Rs 18,791 crore. Investment income increased by 26.24% with income of Rs 1,401.90 crore. (ET).
Reliance Infrastructure on Tuesday reported a 20% increase in consolidated net profit for the first fiscal quarter, even as auditors said there were concerns over the company’s ability to continue its business given the performance of its subsidiaries and associate companies. Reliance Infrastructure posted a consolidated net profit of Rs 299.15 crore for the April-June quarter. Total income rose 5.7% to Rs 6,080 crore. (BL).
IDBI Bank on Wednesday said its loss for the June quarter widened to Rs 3,801 crore from Rs 2.410 crore a year ago, along with a decline in interest income. The lender said its net interest income was at Rs 1,458 crore for the first quarter of fiscal year 2020 as against Rs 1,639 crore last year. The banks’ net interest margin was at 2.13 per cent compared with 2.17 per cent. IDBI Banks’ gross NPA ratio improved to 29.12 per cent as on June 30 against 30.78 per cent as on June 30, 2018. Net NPA ratio improved to 8.02 per cent from against 18.76 per cent as on June 30, 2018 and 10.11 per cent as on March 31, 2019. Provision Coverage Ratio (PCR-including technical write-offs) improved to 87.79 per cent from 64.45 per cent. (BL).
Pharmaceutical firm Wockhardt on Wednesday reported narrowing of its consolidated net loss to Rs 44.98 crore for the quarter ended June 30, 2019. The company had posted a net loss of Rs 89.18 crore in the same period a year ago. Total income of the company stood at Rs 871.19 crore during the quarter under review, down 14.18 per cent, from Rs 1,015.14 crore reported in the corresponding period of the previous fiscal, Wockhardt said in a BSE filing. (ET).
Amid a broader slowdown in consumption, Nestle India remains an exception. The maker of Maggi noodles delivered 10.5 per cent volume growth in the second quarter (9.6 per cent in first half of CY19), the highest among FMCG companies. The brand has finally crossed the volume of first half CY15, a period prior to the Maggi crisis. From 2.08 lakh tonnes of domestic sales in the first half of 2015, it dropped to 1.72 lakh tonnes in the first half of the following year. In first half of 2019, it crossed the 2015 volume for the first time – of 2.26 lakh tonnes. (BL).
Anil Ambani-led Reliance Capital reported an over four-fold jump in its consolidated net profit at Rs 1,218 core for the first quarter of the ongoing fiscal, driven by higher income. The company’s profit was Rs 295 crore in the year-ago period. Total income increased by 31 per cent to Rs 6,083 crore during the April-June quarter of 2019-20 as against Rs 4,641 crore in the corresponding period last year. Total assets of Reliance Capital stood at Rs 79,207 crore as on June 30, 2019 as against Rs 83,973 crore a year ago. (BL).
GMR Infrastructure has posted a loss of Rs 334.85 crore for the first quarter ended June 30, 2019 as against a loss of Rs 237.63 crore during the corresponding quarter of last year on a consolidated basis. The total income of the diversified infrastructure company was at Rs 2,205.91 crore during the first quarter as against Rs 1867.24 crore in the corresponding quarter of the previous financial year. The Board of Directors of the company at its meeting held on August 8 has approved for the proposal to raise funds up to Rs 2,500 crore in one or more tranche(s), through issue of equity shares or equity linked instruments, debentures or any other securities and also Rs 229.70 crore through issue of four optionally convertible debentures (OCDs) of face value of Rs 57,41,97,685. (BL).
Economy and Sector News
Fintech start-up, Lendingkart Technologies Private Ltd, has raised another fresh equity round of Rs.21 crore from existing investor Sistema Asia Fund (SAF) as a part of its ongoing Series D fund raise. The funds will be used to expand the lending base, build technology and strengthen analytics capabilities. (BL).
Oyo Hotels and Homes is planning to expand its operations in Visakhapatnam city. The company will and additional Rs 100 croresto offer better hospitality to tourists and visitors to the city, according to a press releaseAt present, the group has 100 hotels and 1,950 rooms in the city and 289 hotels and 6,300 rooms in Andhra Pradesh. The group has generated 3,000 direct jobs and it plans to provide direct and indirect employment to 5,500 more in the coming year or so. (ET).
Central Bank of India has reduced 1-year MCLR by 20bps from 8.50% to 8.30% and also reduced across all other tenors effective from August 15, 2019. MD & CEO also informed that the Bank will come out with New Products in Retail Segments having Repo Linked Interest Rate i.e. RLIR during September 2019. (BL).
Fertiliser major IFFCO on Thursday reduced the price of its complex fertilisers, including DAP, by Rs.50 per bag as part of efforts to bring down farmers’ input cost. The rate cut will be applicable from August 15. The price of DAP (di-ammonium phosphate) has been reduced to Rs.1,250 per bag (of 50 kg) from Rs.1,300 earlier. Similarly, the rate of NPK 1 has come down to Rs.1,200 from Rs.1,250 per bag, while NPK 2 rate will now be Rs.1,210 from Rs.1,260 per bag. The rate of NP has been slashed to Rs.950 per bag from Rs.1,000. In more news, Prime Minister Narendra Modi on Thursday said his government will invest a massive Rs 100 lakh crore on developing modern infrastructure that will aid in nearly doubling the size of the Indian economy to USD 5 trillion in the next five years. (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 were mixed on Thursday. S&P 500 and the Dow gained ground in a late rally on Thursday as upbeat retail sales data offset recessionary fears amid the simmering U.S.-China trade tensions. The Dow Jones Index closed at 25,579, up 99.97 points by 0.39%. The Standard & Poors 500 index closed at 2,848, up 7.00 points by 0.25%. The Nasdaq Composite Index closed at 7,767, down 7.32 points by 0.09%.

FTSE 100

UK markets finished firmly in the red again on Thursday amid ongoing Sino-US trade frictions and as sterling was boosted by better-than-expected retail sales data. The FTSE 100 index closed at 7,067, down 80.87 points by 1.13%.

 
 
Global Indices
15/08/2019 Clsg Chg%
Dow Jones 25,579 +0.39
NASDAQ 7,767 -0.09
FTSE 100 7,067 -1.13
Bovespa 99,057 -1.20
16/08/2019 Latest
(4:39AM IST)
Chg%
Nikkei 20,406 -1.21
Hang Seng 25,495 +0.76

Nikkei

Asian shares started trading in the negative on Friday in early morning trading as investors will be watching the US markets closely. Nikkei is currently trading at 20,406, down 249.48 points by 1.21%.

Precious Metals

Gold prices recovered earlier losses Thursday to score a modest gain and another finish at a more than six-year high, on the back of haven-related buying spurred on by risks to the global economy.

Base Metals

The three-month nickel price on the London Metal Exchange closed at its highest since December 2014 on Thursday August 15, climbing to $16,250 per tonne amid renewed buying momentum, while a steady incline in tin futures led to its highest close since August 1.

Crude Oil

Oil futures ended lower Thursday for a second consecutive session, as U.S.-China trade tensions continue to feed worries about a global economic slowdown that could weigh on demand.

 
 
 

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Neeraj Sharma D: 91 22 2858 3208
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Email: retailresearch@acm.co.in

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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.