Morning Notes
25th Jul, 2019
 

Trading Range:

Nifty opened gap down at 11322 on Wednesday and made a high and low of 11360 and 11230 respectively before closing negative at 11271.

Review/Outlook:

For the day, support for Nifty exists at 11220 and 11160 levels whereas resistance for Nifty stands at 11330 and 11390 levels.

Review/Outlook:

Bank Nifty opened gap down at 29085, made a high of 29252, low of 28871, and closed negative at 28952. For the day, support for Bank Nifty exists at 28800 and 28600 levels whereas resistance for Bank Nifty stands at 29200 and 29400 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 37,848 -0.36
Nifty 11,271  -0.53
BSE 200 4,684 -0.75
BSE Midcap 13,710 -1.48
BSE Smallcap 13,044 -1.23
Dow Jones 27,270 -0.29
NASDAQ 8,322 +0.85
 

DERIVATIVES INDICATORS FOR JUL 25, 2019:

NIFTY 11271.30 (-59.75) (-0.53%)
NIFTY JUL FUTURE 11277.80  (6.50 Points Premium)
NIFTY PCR - OI 0.96(-0.10)
NIFTY OPEN INTEREST 2.19Cr. (+2.27%)
INDIA VIX 12.76 (-4.97%)
NIFTY ROLLOVER 53%

NIFTY OPTIONS ACTIVITY (25-JUL SERIES)

CALL 11350 CE +9.59 lac Shares
CALL 11300 CE +17.35 lac Shares
PUT 11250 PE +6.66 lac Shares
PUT 11300 PE -17.09 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 15,913 -1.98
Bankex 32,671 -0.74
PSU 7,183 -1.22
Healthcare 12,636 -1.13
IT 15,458 -0.53
 
Market Turn Over (`cr)
Index 24/07 23/07
BSE Cash 2,379 1,851
NSE Cash 33,680 32,335
NSE F&O 1,569,829 1,225,916
BSE Delivery % 61.82 50.10
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 16.83 83.17
BSE 200 18.41 81.09
BSE 500 21.96 77.25
Total BSE 30.93 62.94
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 55.88 -1.57
Gold Rs./ 10 Gms 35027.00 +0.02
Silver Rs./ Kg 41783.00 +0.84
Rs.- US $ 68.99 -0.06
Rs.- Euro 76.88 -0.13
FII (Rs cr )
24/07* 23/07*
FIIs -2745.72 -1929.23
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    1,20,354.00       9,281.04    1,35,718.00     10,543.73    2,86,848.00     22,720.83  (1,262.69)
Index Options  43,27,691.00  2,88,441.91  43,52,785.00  2,90,217.66    6,06,068.00     47,216.95  (1,775.76)
Stock Futures    5,24,558.00     31,412.35    5,30,240.00     31,599.03  14,59,988.00     88,945.59     (186.69)
Stock Options       59,748.00       3,520.13       58,499.00       3,491.20       58,918.00       3,464.72        28.94
Total  50,32,351.00  3,32,655.43  50,77,242.00  3,35,851.62  24,11,822.00  1,62,348.09  (3,196.19)
Corporate News
Tata Power plans to install 500 Electric Vehicle (EV) charging outlets across five cities over the next one year as the integrated power company readies the ground for the transition to battery-powered vehicles. Tata Power Managing Director and CEO Praveer Sinha told BusinessLine that the charging stations are being installed in Delhi, Mumbai, Bengaluru, Pune and Hyderabad. In Hyderabad, the company is working with fleet owners. (BL).
NTPC Limited and Bharat Heavy Electricals Limited (BHEL) have signed a Memorandum of Understanding (MoU) for forming a Joint Venture company, to set up a 800 MW Technology Demonstration Plant (TDP) at NTPC’s existing power plant in Sipat, Chhattisgarh. (ET).
Public sector mining major NMDC Ltd, which signed a research collaboration agreement with Environmental Clean Technologies (ECT) of Australia in May 2018, has described ECT’s lignite-based steel making technology as “unproven” and one that has “no business relevance for NMDC”. (BL).
French oil and gas giant Total SA has taken a 50 per cent stake in Dhamra LNG Terminal Pvt Ltd (DLTPL), a unit of Adani Ports and Special Economic Zone Ltd (APSEZ), which is constructing a 12 million tonne per annum (mtpa) LNG regasification terminal at its port located at Dhamra in Odisha's Bhadrak district. In more news, Fitch Ratings has assigned India-based port operator Adani Ports and Special Economic Zone Limited's (APSEZ, BBB-/Stable) USD650 million senior unsecured notes due 2024 a final rating of 'BBB-' with a Stable Outlook. The proceeds will be primarily used for redeeming existing US dollar notes due 2020. The final rating follows the receipt of documents conforming to information already received and is in line with the expected rating assigned on July 15, 2019. (ET).
Castrol India Ltd, an automotive and industrial lubricant manufacturing company, announced it is ready for the BS-VI transition by launching a range of BS-VI compliant lubricants across categories. (ET).
The National Company Law Tribunal (NCLT), Chennai Bench, has ordered initiation of insolvency proceedings against L&T Halol - Shamlaji Tollway Ltd (L&T Halol) on a petition filed by Oriental Bank of Commerce (OBC), which alleged that the company had defaulted in repayment of Rs.76.68 crore as on December 27, 2018. (BS).
The board of directors of Srikalahasthi Pipes Ltd has approved a plan to increase the capacity of its Ductile Iron Pipe plant from 3,00,000 tonnes to 5,00,000 tonnes per annum with a total outlay of Rs.400 crore. The decision to expand was taken considering the growing demand of Ductile Iron Pipes. The board in its previous meeting had already sanctioned capex of Rs.145 crore and the balance capex of Rs.255 crore has now been approved. (BL).
Insurance regulator IRDAI chairman S C Khuntia said the life and general insurance subsidiaries of cash strapped mortgage lender DHFL are safe and have adequate solvency. Troubled DHFL has two insurance subsidiaries - DHFL Pramerica Life insurance and DHFL General Insurance. (BS).
Sajjan Jindal-led JSW Energy plans to raise around $750 million from international bond sale to fund expansion plans as well as to repay some of its existing debt of over Rs.10,050 crore. (BL).
IFB Industries, which sells home appliances and other white goods under the ‘IFB’ brand, has begun a de-risking mechanism against currency depreciation by substituting high-cost imported components with locally manufactured alternatives. (ET).
Zydus Cadila on Wednesday launched Ramelteon tablets, used to treat insomnia, in the US market. In a BSE filing, Zydus Cadila announced the launch of Ramelteon tablets, 8 mg upon receiving the final approval from the USFDA. Ramelteon is a sedative, also called a hypnotic. (BL).
The Digital Communications Commission (DCC) has cleared levying penalties of Rs 3,050 crore on Bharti Airtel and Vodafone Idea for allegedly denying Reliance Jio Infocomm adequate points of interconnection (PoIs) in 2016, a decision that the two affected telcos said will challenge in court. (BL).
Infrastructure Leasing & Financial Services (IL&FS), which has an outstanding debt of Rs 94,216 crore, said Wednesday the board has taken various steps to address over Rs 20,000 crore of its debt pile over the past nine months. (BS).
Eleven mutual fund houses hold Rs 3,494 crore in Yes Bank papers which got downgraded again, shows data from MFI Explorer. The Yes Bank papers have been downgraded by ICRA twice since May. On July 24, ICRA downgraded Basel III Additional Tier I Bond from A (negative) to BBB+ (negative) and Basel II Lower Tier II Bond from AA- (negative) to A+ (negative). Among the 11 asset management companies, Reliance Mutual Fund has the highest exposure of Rs 2,216 crore in the troubled Yes Bank papers. Some of the schemes that had exposure to the downgraded papers were: Reliance Credit Risk Fund with Rs 578 crore exposure (7.2 per cent of the scheme’s total AUM), Reliance Equity Hybrid Fund has Rs 707 crore (6.5 per cent of its AUM) And Reliance Strategic Debt Fund with an exposure of Rs 507 crore (12 per cent of the total AUM). (ET).
Corporate Quarterly Earnings
ICICI Prudential’s net profit rose 1 per cent to Rs 285 crore in the June quarter, compared with Rs 282 crore in the corresponding quarter of the previous year. The Value of New Business grew by 27% to Rs.3.09 billion for the first quarter of FY20. The annualised premium equivalent (APE), or a measure of new businesses written by the company, grew by 5.3 per cent to Rs.1470 crore as against Rs.139 crore in this period. Asset under management grew 15 per cent to Rs.1.6 lakh crore. Total premiums grew 14.7 per cent in the reporting quarter to Rs.6329 crore as against Rs.5518 crore in the previous while the net premium earned grew 14.2 per cent. The company’s 13th month persistency ratio- measured in terms of number of policies and premiums underwritten, remained stable at 84.4% while the 61th month was at 57.3%. (BL).
State-owned Canara Bank on Wednesday reported a 17.08 per cent rise in its standalone net profit to Rs 329.07 crore for the first quarter ended June 30, mainly driven by reduction in bad loans. The bank had registered a net profit of Rs 281.49 crore in the April-June period of 2018-19. Total income rose to Rs 14,062.39 crore in the June quarter from Rs 13,192.46 crore in same period a year ago, Canara Bank said in a regulatory filing. At the same time, interest income rose to Rs 12,200.52 crore in the quarter from 11,359.55 crore in the corresponding period last fiscal. The bank's income from other sources too improved to Rs 1,861.87 crore from Rs 1,832.91 crore. During the quarter, the bank earned operating profit of Rs 2,440.01 crore. (ET).
Jubilant FoodWorks Ltd, which operates fast-food chains Domino's Pizza and Dunkin' Donuts, on Wednesday reported a marginal decline in its consolidated net profit at Rs 71.48 crore for the first quarter ended June 30, 2019. The company had posted a net profit of Rs 72.12 crore in April-June quarter a year-ago, Jubilant FoodWorks Ltd (JFL) said in a BSE filing. However, its revenue from operations was up 9.94 per cent to Rs 949.11 crore during the quarter under review as against Rs 863.22 crore of the corresponding quarter last fiscal. (ET).
State-run Syndicate Bank on Wednesday reported narrowing down of its net loss to Rs 980.46 crore in the quarter ended June 2019 due to a fall in provisioning for bad assets. The bank had posted a net loss of Rs 1,281.77 crore in the same April-June quarter of the previous fiscal ended March 2019. Total income during the June quarter of 2019-20 rose to Rs 6,080.69 crore from Rs 56,37.51 crore in the year-ago period, Syndicate Bank said in a regulatory filing. The bank's asset quality witnessed a slight improvement with the gross non-performing assets (NPAs) falling to 11.76 per cent of the gross advances by the end of June 2019 quarter, from 12.59 per cent as on June 2018. The bank's asset quality witnessed a slight improvement with the gross non-performing assets (NPAs) falling to 11.76 per cent of the gross advances by the end of June 2019 quarter, from 12.59 per cent as on June 2018. The bank's provision coverage ratio as on June 30, 2019, stood at 69.02 per cent. (BL).
Seed firm Monsanto India on Wednesday posted a 15.11 per cent jump in net profit at Rs 76 crore for the first quarter of 2019-20 on higher sales. Net profit stood at Rs 66.02 crore in the corresponding quarter of the previous financial year. The company's total income rose to Rs 298.34 crore during the April-June period of the current fiscal, compared to Rs 264.41 crore in the year-ago quarter. (ET).
Crompton Greaves Consumer Electricals (CGCEL) on Wednesday reported a 17.42 per cent increase in consolidated net profit at Rs 122.44 crore for the quarter ended June 30, 2019. The company had posted net profit of Rs 104.27 crore in the same period a year ago. The total income of the company in the quarter under review stood at Rs 1,364.14 crore as against Rs 1,212.73 crore in the same quarter a year-ago, a growth of 12.48 per cent, CGCEL said in a regulatory filing. (ET).
Karur Vysya Bank on Wednesday reported a jump of 59 per cent in its net profit at Rs 72.92 crore in the first quarter of the current fiscal, on two-fold jump in one of the interest components and lower provisioning for bad loans. The bank's net profit during the corresponding April-June period of previous fiscal 2018-19 was at Rs 45.91 crore. Total income during the June quarter of 2019-20 rose to Rs 1,762.37 crore as against Rs 1,697.40 crore a year ago's same period, Karur Vysya Bank said in a regulatory filing. The bank's interest on balances with the Reserve Bank of India (RBI) and other other interbank funds grew by over two times to Rs 32.46 crore during the quarter, as against Rs 15.05 crore a year ago same period. (ET).
Bharti Infratel consolidated revenue grew by 1.0% yoy to Rs3,712cr. Reported EBTDA came in at Rs1,953cr. Reported EBITDA margin expanded by ~1,940bps yoy to 52.6%. Consolidated net profit grew by 39% yoy to Rs887cr. (BL).
Asian Paints Ltd (APNT) consolidated revenue (net of excise duty in the base quarter) of the company grew 16.9% yoy to Rs5,130.6cr. Aided by benign input cost (crude oil), gross margin for the quarter remained flat on yoy basis. EBITDA reported strong growth of 24.4% yoy to Rs1,156.3cr. Strong revenue growth and lower other expense as percent of net sales aided EBITDA margin expansion of 136bps yoy to 22.5%. Company reported PAT growth of 17.9% yoy to Rs672.1cr, 21%. (BS).
Murugappa Group company Tube Investments of India (TII) has reported a profit after tax of Rs.88 crore for the first quarter ended June 30, 2019, when compared with Rs.54 crore in the year-ago quarter. There was an exceptional item of Rs.19 crore, which was made on tendering of shares held in Shanthi Gears under the buyback scheme, for the first quarter of this fiscal. The profit before tax and exceptional items for the June 2019 quarter was at Rs.107 crore when compared with Rs.79 crore in the same quarter previous fiscal. The company’s total income declined by seven per cent at Rs.1,261 crore as against Rs.1,363 crore in the year-ago quarter. (ET).
The consumer and electrical major V Guard Industries Limited has registered a 54 per cent increase in PAT at Rs 53 crore in Q1 against Rs 34.5 crore in the corresponding period of the previous fiscal. The consolidated net revenue from operations for the quarter was Rs 707 crore, an increase of 10 per cent over the previous year (Rs 642 crore). The non-south markets contributed 46 per cent of the net revenue. (BL).
Economy and Sector News
Japanese car giant Nissan plans to cut more than 10,000 jobs around the world as part of efforts to turn itself around, Japanese media said Wednesday, citing company sources. In more news, the Power Ministry has clarified that power distribution utilities can procure electricity from State government-owned power generation utilities without offering a Letter of Credit as an immediate payment assurance, in an official statement. (BL).
The Centre has accrued close to Rs.19,000 crore of subsidy savings because of lower kerosene consumption thanks to more cooking gas and electricity connections since financial year 2015-16. In more news, the government on Wednesday approved creation of a sugar buffer stock of 4 million tonnes in view of bumper domestic production and pending sugarcane arrears of more than Rs.15,000 crore. (ET).
The monsoon rains were 35 per cent below average in the week ending on Wednesday, with little rainfall over the central, western and northern parts of the country, the India Meteorological Department (IMD) said, raising concerns over the output of kharif crops. In more news, he Maharashtra Cabinet on Tuesday approved three new metro corridors for the Mumbai metropolitan region with a cumulative length of 50 km and a project cost of Rs.24,000 crore. The Mumbai Metropolitan Region Development Authority (MMRDA) will be the implementing body for the project. (BL).
The growth in research and development (R&D) expenditure should be commensurate with the economy’s growth and should be targeted to reach at least 2 per cent of the gross domestic product (GDP) by 2022, according to the Economic Advisory Council to the Prime Minister (EAC-PM). In more news, the Cabinet on Wednesday cleared a fair and remunerative price (FRP) of Rs.275 per quintal — the same as last year — for sugarcane sold to mills during the forthcoming sugar season of 2019-20, much to the chagrin of sugarcane growers. (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 turned in a mixed performance on Wednesday as market participants began to look ahead to face-to-face talks between American and Chinese negotiators next week. The Dow Jones Index closed at 27,269, down 79.22 points by 0.29%. The Standard & Poors 500 index closed at 3,020, up 14.09 points by 0.47%. The Nasdaq Composite Index closed at 8,321, up 70.10 points by 0.85%.

FTSE 100

UK markets had pared back some of their earlier losses by the close on Wednesday, but still finished in the red, with market sentiment weighed down by weakness in the mining sector. The FTSE 100 index closed at 7,501, down 55.40 points by 0.73%.

 
 
Global Indices
24/07/2019 Clsg Chg%
Dow Jones 27,269 -0.29
NASDAQ 8,321 +0.85
FTSE 100 7,501 -0.73
Bovespa 104,120 +0.40
25/07/2019 Latest
(4:31AM IST)
Chg%
Nikkei 21,709 +0.41
Hang Seng 28,524 +0.20

Nikkei

Asia stocks started trading on a positive note early on Thursday as the investors will keep a close watch on the global markets. Nikkei is currently trading at 21,709, up 88.69 points by 0.41%.

Precious Metals

August gold climbs $1.90, or 0.1%, to settle at $1,423.60/oz on Wednesday.

Base Metals

Base metals prices traded on the London Metal Exchange continued to capitalize on marginal gains made in the morning session on Wednesday July 24, with the pervading macro optimism and a weaker US dollar overshadowing modest turnover.

Crude Oil

Oil futures settled lower on Wednesday, as support from a storm-induced, 11 million-barrel drop in U.S. crude supplies wore off and traders turned their attention back to concerns about weaker energy demand.

 
 
 

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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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