Morning Notes
26th Jul, 2019
 

Trading Range:

Nifty opened gap up at 11290 on Thursday and made a high and low of 11361 and 11239 respectively before closing negative at 11252.

Review/Outlook:

For the day, support for Nifty exists at 11220 and 11160 levels whereas resistance for Nifty stands at 11360 and 11410 levels.

Review/Outlook:

Bank Nifty opened gap up at 28981, made a high of 29241, low of 28931, and closed positive at 29043. For the day, support for Bank Nifty exists at 28900 and 28600 levels whereas resistance for Bank Nifty stands at 29250 and 29500 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 37,831 -0.04
Nifty 11,252 -0.17
BSE 200 4,685 +0.04
BSE Midcap 13,783 +0.53
BSE Smallcap 13,031 -0.09
Dow Jones 27,140 -0.47
NASDAQ 8,238 -1.00
 

DERIVATIVES INDICATORS FOR JUL 26, 2019:

NIFTY 11252.15 (-19.15) (-0.17%)
NIFTY AUG FUTURE 11301.05  (48.90 Points Premium)
NIFTY PCR - OI 1.37(+0.41)
NIFTY OPEN INTEREST 1.79Cr. (-18.25%)
INDIA VIX 12.63 (-0.98%)
NIFTY ROLLOVER 74%

NIFTY OPTIONS ACTIVITY (29-AUG SERIES)

CALL 11400 CE +2.81 lac Shares
CALL 11500 CE +4.08 lac Shares
PUT 11200 PE +1.38 lac Shares
PUT 11300 PE +2.77 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 15,870 -0.26
Bankex 32,781 +0.34
PSU 7,133 -0.70
Healthcare 12,840 +1.61
IT 15,577 +0.77
 
Market Turn Over (`cr)
Index 25/07 24/07
BSE Cash 2,046 2,379
NSE Cash 39,452 33,680
NSE F&O 2,603,370 1,569,829
BSE Delivery % 42.97 61.82
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 53.47 46.53
BSE 200 55.72 44.28
BSE 500 50.20 49.00
Total BSE 41.11 52.63
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 55.93 +0.09
Gold Rs./ 10 Gms 34817.00 -0.60
Silver Rs./ Kg 41388.00 -0.95
Rs.- US $ 69.15 +0.23
Rs.- Euro 77.07 +0.25
FII (Rs cr )
25/07* 24/07*
FIIs -1446.80 -2745.72
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    1,00,666.00       7,658.31    1,16,872.00       8,836.02    1,88,433.00     14,749.76  (1,177.70)
Index Options  56,85,980.00  3,74,019.19  56,54,628.00  3,71,314.90    3,92,738.00     31,512.95   2,704.29
Stock Futures    4,20,459.00     25,535.75    4,12,592.00     25,118.11  13,69,295.00     83,792.53      417.65
Stock Options       51,811.00       3,104.96       50,441.00       3,018.37       16,719.00       1,015.51        86.59
Total  62,58,916.00  4,10,318.21  62,34,533.00  4,08,287.39  19,67,185.00  1,31,070.75   2,030.82
Corporate News
Saudi Arabia's Energy Minister Khalid al-Falih said that the state-run Saudi Aramco's talks with Reliance Industries to buy a minority stake in the Indian conglomerate's refining assets have not stalled. (BL).
In a setback for ArcelorMittal, the Grand Court of Cayman Island has declined its plea for a ‘Garnishee Order’ and a ‘Freezing Injunction’ against Essar Global Fund Ltd, the parent firm of Essar Group, to recover a $1.5 billion arbitration award. (ET).
The National Company Law Tribunal’s (NCLT) Mumbai Bench has approved Baba Ramdev-led Patanjali Ayurved’s Rs.4,350-crore resolution plan for debt-ridden edible oil firm Ruchi Soya, which was kept in abeyance earlier. (BL).
The National Company Law Appellate Tribunal (NCLAT) has paved the way for a resolution plan for Nagarjuna Oil Corporation Ltd (NOCL) even as it is under liquidation, and directed the liquidator (V Mahesh) to proceed with Section 230 of the Companies Act, 2013, read in consonance with Insolvency and Bankruptcy Code (I&B), 2016. (ET).
JSW Steel wants its interest to be protected while the lenders hand over the stressed Bhushan Power and Steel to it under the Insolvency and Bankruptcy Code driven process. (ET).
Drug firm Cipla has said its arm Cipla USA Inc has acquired prescription drug Zemdri, used for the treatment of complicated urinary tract infections, from Achaogen Inc. (BS).
The Tata Group has infused more than Rs 1,150 crore equity into the group’s consumer businesses across retail, ecommerce and white goods in the first quarter of this fiscal year, as per latest regulatory disclosures. These funding has been made in four entities: Tata UniStore (which owns Tata Cliq), Infiniti Retail (which runs the Croma chain of electronic stores), Voltbek Home Appliances (which is into durables) and Trent (lifestyle chain Westside and Star hypermarket). (BL).
Coal India Ltd (CIL) has liquidated nearly 2,300 arrear rakes to the non-power segment since the beginning of this fiscal, thereby bringing down the backlog to the segment by more than 44 per cent. The state-owned miner had arrears of over 5,100 rakes to the non-power sector, which had accumulated over the past two fiscals. CIL is hopeful of being able to clear the backlog in the next few months. (BS).
A plan by Bharti Airtel, Warburg Pincus and Singapore Telecommunications to collectively buy the promoter stake of Zee founder Subhash Chandra’s family in Dish TV India has hit an air pocket following a sharp fall in the DTH operator’s stock price since April. Dish TV’s owners are said to be unwilling to sell the 57.52% promoter stake below Rs 45 a share against Rs 30-35 offered by the Airtel-Warburg-Singtel combine. (BL).
Corporate Quarterly Earnings
Tata Motors Limited (TML) consolidated revenue was down 7.8% yoy (down 28.9% qoq) to Rs61,467.0cr. This was due to muted demand in India and struggling JLR. The decline in revenue and adverse operating leverage led to 29.3% yoy decline in the consolidated EBITDA to Rs2,857.9cr. The EBITDA margin contracted by 141bps yoy to 4.6%. The company reported a consolidated Loss of Rs3,679.7cr, against a loss of Rs1,862.6cr in Q1FY19. (BL).
Bajaj Finance Ltd's Q1FY20 standalone NII has come at Rs3,508cr, which has improved by 40.2% yoy. Its standalone net profit for Q1FY20 came at Rs1,125cr against Rs834cr for Q1FY19, which is up by 34.9% yoy. Its GNPA has increased by 2bps qoq to 1.56% from 1.54% and NNPA for the quarter under review came at 0.64%. Reported AUM growth was 41% yoy (38% yoy when adjusted for some one-off growth).  Slippages increased marginally from Rs600cr in 4QFY19 (3% of opening loans) to Rs700cr in 1QFY20 (3.2% of opening loans). Cost-to-income ratio: At 35%, saw a sharp decline of ~200bps yoy, however marginally increased by ~40bps qoq. Provision coverage ratio came at 61% vs. 60% qoq. (ET).
Ambuja Cements, a part of Lafarge-Holcim group, has reported that its net profit in the June-quarter was up 19 per cent at Rs.623 crore (Rs.525 crore) largely due to higher realisation and lower raw material cost. The company’s net sales was up 8 per cent at Rs.6,925 crore (Rs.6,683 crore). Its sales volume was down 4 per cent at 13.02 million tonne (13.61 mt). (ET).
Unilever Plc said that it continues to expect full-year underlying sales growth to be in the lower half of its multi-year 3 per cent to 5 per cent target range and operating margin to reach 20 per cent in 2020. The maker of Dove soap and Ben & Jerry's ice cream said that the underlying sales rose 3.5 per cent in the second quarter. (BL).
Rane Brake Lining Ltd has recorded a 11.56 per cent rise in its net profits to Rs 7.33 crore for the quarter ending June, the city-based company said on Thursday. Total revenue for the April-June quarter slipped to Rs 118.91 crore from Rs 123.16 crore registered year ago. For the financial year ending March 31, 2019, total revenue of the company was at Rs 520.97 crore. (ET).
Biotechnology major Biocon on Thursday reported a 72.34 per cent rise in consolidated net profit to Rs 206.3 crore for the quarter ended on June 30, 2019 mainly on account of robust growth of biologics and small molecules segments. The company had posted a net profit of Rs 119.7 crore for the corresponding period of the previous fiscal, Biocon said in a filing to BSE. Consolidated total income of the company stood at Rs 1,490 crore for the quarter under consideration as against Rs 1,192.6 crore for the same period year ago. (ET).
Bank of Baroda on Thursday reported a consolidated net profit of Rs 826.13 crore for the June quarter of 2019-20 financial year. In the year-ago same period, Bank of Baroda's consolidated net profit was at Rs 645.71 crore. Total income during the quarter under review stood at Rs 22,056.95 crore. It was Rs 13,729.50 crore in the year-ago period, the bank said in a regulatory filing. Total income during the quarter under review stood at Rs 22,056.95 crore. It was Rs 13,729.50 crore in the year-ago period, the bank said in a regulatory filing. Total income during the quarter under review stood at Rs 22,056.95 crore. It was Rs 13,729.50 crore in the year-ago period, the bank said in a regulatory filing. (ET).
Bajaj Finserv on Thursday posted a 2.37 per cent year-on-year (YoY) rise in consolidated profit at Rs 845.34 crore for the quarter ended June 30. The number stood at Rs 825.77 crore in the corresponding quarter last year. Consolidated total income increased 39.92 per cent to Rs 12,272.26 crore during the quarter under review against Rs 8,771.06 crore in the same period last year. (BL).
IDFC First Bank Wednesday reported a net loss of Rs 617 crore for the April-June quarter of the current fiscal on account of higher provisioning. The bank had reported a net profit of Rs 181 crore in the April-June period of the previous fiscal. Provisioning during the quarter increased to Rs 1,280 crore, as against Rs 33.99 crore made in the June quarter of the last fiscal. The gross and net NPA of the bank as of June 30, 2019, stood at 2.66 per cent and 1.35 per cent. (BS).
Economy and Sector News
Toyota Motor Corp said on Thursday it will invest $600 million in Chinese ride-hailing giant Didi Chuxing and a new joint venture to expand collaboration with the firm in China. The move accelerates a trend in China which has seen automakers launch their own ride-hailing services, and firms such as Didi team with automakers to develop purpose-built cars for their services. The Japanese carmaker said the new joint venture would include Toyota's Chinese partnership with Guangzhou Automobile Group Co Ltd (GAC), and would see the companies combining services and technologies. (BL).
The proposed amendments to the Insolvency and Bankruptcy Code (IBC) such as the committee of creditors getting explicit authority over the distribution of proceeds in the resolution process and a firm timeline that cases referred to the IBC should be resolved within 330 days have credit-positive implications for Indian banks, according to Moody’s Investors Service. Referring to the committee of creditors getting explicit authority over the distribution of proceeds in the resolution process, the global credit rating agency observed that this maintains the accepted hierarchy of creditors. In more news, Vodafone faced the highest penalty of Rs 1.56 crore during three quarters to June 2018 for non-compliance with the benchmarks for various quality of service parameters including call drop, Parliament was informed Thursday. A total penalty of Rs 2.61 crore was imposed on various telecom companies, including state-run BSNL and Vodafone, for not meeting the quality of service parameters during the three quarters, according to the data tabled in the House. The penalty has been imposed based on new rule implemented by Trai with effect from October 1, 2017, telecom minister Ravi Shankar Prasad informed the Rajya Sabha. (ET).
A company is required to give information to the Director-General of Anti-profiteering (DGAP) only about the ‘complained product’ and not about every product it produces, the Delhi High Court has said. A complained product refers to a product against which complaint of not passing reduction in GST rate or benefit of Input Tax Credit (ITC) is alleged. The complaint can be made by any consumer or even a tax officer can suo motufiles a complaint. (BL).
The dairy sector in India grew at a rate of 6.4 per cent annually in the last four years against the global growth rate 1.7 per cent and the aim is to improve milk productivity per animal further, Minister of Fisheries, Animal Husbandry and Dairying Giriraj Singh said on Thursday. Despite being ranked number one in milk production, the per animal productivity is 1,806 kg a year, whereas the world average is 2,310 kg. (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 lower on Thursday as investors grew worried that the Federal Reserve may not be as dovish with its monetary policy as initially expected while also continuing to monitor trade developments and earnings. The Dow Jones Index closed at 27,141, down 128.99 points by 0.47%. The Standard & Poors 500 index closed at 3,004, down 15.89 points by 0.53%. The Nasdaq Composite Index closed at 8,238, down 82.96 points by 1.00%.

FTSE 100

UK markets had fallen into the red by the close on Thursday, after a slew of earnings news, and as investors digested the latest policy announcement from the European Central Bank. The FTSE 100 index closed at 7,489, down 12.41 points by 0.17%.

 
 
Global Indices
25/07/2019 Clsg Chg%
Dow Jones 27,141 -0.47
NASDAQ 8,238 -1.00
FTSE 100 7,489 -0.17
Bovespa 102,436 -1.62
26/07/2019 Latest
(4:31AM IST)
Chg%
Nikkei 21,756 +0.22
Hang Seng 28,594 +0.25

Nikkei

Asia stocks started trading on a positive note early on Friday as the investors will keep a close watch on the global markets. Nikkei is currently trading at 21,756, up 46.98 points by 0.22%.

Precious Metals

Gold futures settled sharply lower Thursday, reversing a morning climb, after the European Central Bank’s decision to signal its plan to ease monetary policy disappointed investors by not including immediate action or details of its likly efforts.

Base Metals

The three-month price of nickel on the London Metal Exchange continued its descent at the close of trading on Thursday July 25, falling by some 3.4% to close just above the $14,000 per tonne threshold, while lead futures climbed by 1.5% to breach nearby resistance levels.

Crude Oil

Oil futures ended with a modest gain Thursday. West Texas Intermediate crude for September delivery on the New York Mercantile Exchange rose 14 cents, or 0.3%, to finish at $56.02 a barrel. The U.S. benchmark is on track for a 0.6% weekly rise.

 
 
 

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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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