Morning Notes
29th Jul, 2019
 

Trading Range:

Nifty opened gap down at 11247 on Friday and made a high and low of 11308 and 11210 respectively before closing positive at 11284.

Review/Outlook:

For the day, support for Nifty exists at 11230 and 11170 levels whereas resistance for Nifty stands at 11360 and 11420 levels..

Review/Outlook:

Bank Nifty opened gap up at 29062, made a high of 29379, low of 28994, and closed positive at 29325. For the day, support for Bank Nifty exists at 29100 and 28900 levels whereas resistance for Bank Nifty stands at 29500 and 29700 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 37,883 +0.14
Nifty 11,284 +0.29
BSE 200 4,704 +0.38
BSE Midcap 13,856 +0.53
BSE Smallcap 13,060 +0.22
Dow Jones 27,192 +0.19
NASDAQ 8,330 +1.11
 

DERIVATIVES INDICATORS FOR JUL 29, 2019:

NIFTY 11284.30 (+32.15) (+0.29%)
NIFTY AUG FUTURE 11327.00  (42.70 Points Premium)
NIFTY PCR - OI 1.37(+0.00)
NIFTY OPEN INTEREST 1.76Cr. (-1.40%)
INDIA VIX 12.13 (-3.98%)
NIFTY ROLLOVER 5%

NIFTY OPTIONS ACTIVITY (29-AUG SERIES)

CALL 11300 CE +2.50 lac Shares
CALL 11400 CE +1.03 lac Shares
PUT 11100 PE +0.64 lac Shares
PUT 11300 PE +2.57 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 16,185 +1.98
Bankex 33,119 +1.03
PSU 7,129 -0.05
Healthcare 12,959 +0.93
IT 15,442 -0.87
 
Market Turn Over (`cr)
Index 26/07 25/07
BSE Cash 2,170 2,046
NSE Cash 32,684 39,452
NSE F&O 707,105 2,603,370
BSE Delivery % 66.95 42.97
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 67.33 32.67
BSE 200 67.16 32.84
BSE 500 59.68 39.72
Total BSE 48.97 45.70
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 56.18 -0.04
Gold Rs./ 10 Gms 34773.00 -0.13
Silver Rs./ Kg 41152.00 -0.57
Rs.- US $ 68.88 -0.39
Rs.- Euro 76.67 -0.52
FII (Rs cr )
26/07* 25/07*
FIIs +535.10 -1446.80
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       31,236.00       2,273.93       44,907.00       3,323.13    1,94,264.00     15,256.69  (1,049.20)
Index Options  20,96,775.00  1,42,282.31  20,83,984.00  1,41,274.93    4,29,663.00     34,231.55   1,007.39
Stock Futures    2,26,650.00     12,711.72    2,09,291.00     11,990.85  13,82,600.00     85,051.37      720.88
Stock Options    1,00,974.00       5,571.88       99,257.00       5,445.58       36,436.00       2,112.87      126.30
Total  24,55,635.00  1,62,839.85  24,37,439.00  1,62,034.49  20,42,963.00  1,36,652.48      805.36
Corporate News
Adani Group will invest Rs 5,500 crore over the next five years in power transmission and food processing sectors in Uttar Pradesh, its chairman Gautam Adani said on Sunday. In more news, Adani Group plans  to convert its private airstrip at Mundra  port complex into a full-fledged commercial airport at  an investment of Rs.1,400 crore. (BL).
GAIL (India) Chairman and Managing Director (CMD), B C Tripathi has been denied a third extension at the helm of the public sector undertaking (PSU). (ET).
Pfizer Inc plans to combine its off-patent business, which includes Lipitor cholesterol pills and male impotence drug Viagra, with Mylan NV and form a generic drug giant, according to people familiar with the matter. (BL).
The Torrent Group on Sunday said it is planning to invest Rs 3,000 crore for laying a gas pipeline network in Uttar Pradesh. (ET).
Hero Electric is planning to raise funds to finance its accelerated expansion to cash in on the wave of electric vehicles (EV) in India, according to a top company official. The company is looking at an investment of around Rs.700 crore in the next three years to ramp up production capacity of its electric scooters to 5 lakh units annually from about 1 lakh units this year. (ET).
Tata Chemicals, the world’s second largest soda ash manufacturer, has received green nod for expansion of its soda ash plant in Gujarat at an estimated cost of Rs.1,042.07 crore, according to official documents. The proposal is for expansion of its soda ash plant located in Devbhumi Dwarka district fro 10.91 lakh tonne per annum to 113.16 lakh tonne per annum and enhance captive power plant capacity from 84 mega watt (mw) to 125 mw. (BS).
David Lloyd Leisure, Europe's largest and fastest growing group of premium racquets, health and fitness clubs, in partnership with Talwalkars Better Value Fitness launched the first ‘David Lloyd Clubs Talwalkars’ in Pune. The company has infused ₹85 crore to build this premium family-oriented club that operates on a membership basis. (BL).
The mining and construction equipment division of Voltas Ltd, which currently earns more than two-thirds of its revenues from international operations, expects India operations to pick up. (BS).
Over 200 former employees of insolvency-hit Punj Lloyd have now got their Provident Fund dues. Recipients told BusinessLine that disbursements from the Punj Lloyd Group Employee Provident Fund Trust to their accounts are being made in tranches. Around 100 employees got their dues last week, another 100 got this week. (BL).
Corporate Quarterly Earnings
ICICI Bank's Q1FY20 NII came at Rs7,737cr as against Rs6,102cr, which is up by 27% yoy. The bank has reported a net profit of Rs1,908cr in Q1FY20 as against loss of Rs120cr yoy. Its GNPA for Q1FY20 came at 6.49% against 6.7% qoq, which has decreased by 21bps. NNPA for the quarter came at 1.77% against 2.06% qoq, which has declined by 29bps. Core operating profit grew by 21% yoy to Rs6,110cr in Q1FY20. Total capital adequacy ratio of 16.19% and Tier-1 capital adequacy ratio of 14.60% on standalone basis at June 30, 2019. Provisions were Rs3,496cr in Q1FY20 compared to Rs5,971cr in Q1FY19. (BL).
Vedanta revenue declined by 3.7% yoy to Rs 21,374cr. EBITDA stood at Rs5,198cr. The EBIDTA margin contracted 356bps yoy to 24.3%. The net profit stood at Rs1,351cr, down 11.9% yoy. (ET).
JSW Steel Ltd revenue declined by 3.4% yoy to Rs 19,812cr. EBITDA stood at Rs3,716cr. EBIDTA margin declined by 612bps yoy to 18.8%. Net profit stood at Rs1,028cr. (ET).
Maruti Suzuki India Limited (MSIL) standalone revenue declined by 12.2% yoy to Rs19,719.8cr. EBITDA was down 38.9% yoy and stood at Rs2,047.8cr. EBITDA margin contracted by 454bps yoy to 10.4%. Depreciation and interest costs were up by 27.6% and 164.3% yoy. Thus, PAT declined by 27.3% yoy to Rs1,435.5cr. (BL).
Bajaj Auto Limited (BJAUT) standalone revenue grew by 3.9% yoy to Rs7,755.8cr (up 4.5% sequentially). Volume grew by 1.7% and resultantly, negative operating leverage led to EBITDA decline of 10.5% yoy to Rs1,198.2cr. Thus, EBITDA margin contracted 249bps yoy to 15.4%. The reported PAT stood at Rs1,125.7cr, flat yoy. (ET).
Jaiprakash Power Ventures Ltd (JPVL) on Saturday reported a consolidated net loss of Rs 95.52 crore for the first quarter ended June 2019 as compared to a net profit of Rs 19.75 crore for the corresponding period a year ago. Total income during the quarter was down 4.08 per cent to Rs 1,084.64 crore as against Rs 1,130.79 crore in the corresponding quarter of the previous fiscal. (ET).
Consumer electrical goods maker Havells India Ltd on Saturday reported a 16.13 per cent fall in its consolidated net profit to Rs 177.09 crore for the first quarter ended June 2019. The company had logged a net profit of Rs 211.16 crore in the April-June period a year ago, according to a regulatory filing. The company’s total income during the quarter rose 4.81 per cent to Rs 2,756.50 crore as against Rs 2,629.94 crore in the corresponding quarter of the previous year. (ET).
Eris Lifesciences Ltd on Saturday reported a 17.47 per cent rise in its consolidated net profit at Rs 84.05 crore for the April-June quarter. Net profit was Rs 71.55 crore in the corresponding quarter a year ago. The company’s total income during the quarter was at Rs 277.12 crore, up 8.98 per cent, as against Rs 254.28 crore in the corresponding quarter. (BL).
Power and automation technology firm ABB India on Friday said its net profit rose by over 27 per cent to Rs 130.40 crore during the quarter ended June 30, 2019, helped by higher income. The company had clocked Rs 102.15 crore net profit during the same period a year ago. Total income during the quarter also grew to Rs 1,746.12 crore from Rs 1,684.05 crore in the year-ago-period. (BL).
Vodafone Idea’s (VIL) net loss narrowed to Rs 4,873.9 crore for the April-June quarter. The adoption the Ind AS 116 accounting standard “resulted in a positive impact of Rs. 1.2 billion at PAT (profit after tax) for the quarter,” the company said in a statement on Friday. EBIDTA margin expanded to 32.5% from 15.2% in the previous quarter. Revenue for the quarter ended June fell 4.3% on quarter to Rs11,269.9 crore. (BL).
Punjab National Bank on Friday reported a surprise profit of Rs 1,018.63 crore for the quarter ended June 30 on big slump in provisions. The public sector lender had reported a loss of Rs 940 crore in the corresponding quarter last year. Provisions and contingencies declined sharply by 64.86 per cent on a yearly basis to Rs 2,023.31 crore over Rs 5,758.16 crore. The number declined 80 per cent sequentially. The bank’s provision coverage ratio stood at 74.63 per cent as of June 30. However, asset quality deteriorated with percentage of gross non-performing assets (NPA) rising to 16.49 per cent against 15.50 per cent on a quarterly basis. Net NPA increased to 7.17 per cent from 6.56 per cent during the same period. Net interest income declined 11.73 per cent on a yearly basis to Rs 4,141.36 crore. The figure stood at Rs 4,691.86 crore in the same period last year. (BL).
Bharti Airtel’s Africa unit posted a 12 per cent drop on-year in net profit to reach $125 million for the quarter ended June 2019 on-year, on revenue of $796 million on constant currency terms. The Africa unit, which listed on the London Stock Exchange and raised about $750 million by offloading 25 per cent stake, said its revenue growth of 10.2 per cent in constant currency was driven by double-digit growth in Nigeria and East Africa, partially offset by a decline in revenue in Rest of Africa. Airtel Africa’s data revenue was up 36 per cent to $207.1 million and was the largest contributor to growth owing to an increasing number of customers taking to high-speed LTE services, resulting in a 79 per cent growth in data usage. Data average revenue per user (Arpu) rose to 2.3$ up 17 per cent in constant currency terms for the June ended quarter. (BL).
Economy and Sector News
PepsiCo India on Sunday said it plans to invest about Rs514 crore over three years, to set up a greenfield snacks manufacturing plant in Uttar Pradesh. In more news, Chennai-headquartered EDAC Engineering’s joint venture in Malaysia has won Rs.750 crore worth of long-term maintenance contract from Petronas, Malaysia’s national oil & gas company. (BL).
In a first in the country, Mumbai-based wealth advisory firm Waterfield Advisors will soon launch a $15-million Development Impact Bond (DIB) for the farm sector. It has roped in Tata Trusts’ CInI as the implementation partner for the same. In more news, GMR Hyderabad International Airport Limited (GHIAL), which runs the Rajiv Gandhi International Airport (RGIA) at Shamshabad in Telangana plans to double the capacity to handle 50 million passengers per annum (MPPA) from the existing 25 MPPA with an investment of Rs. 8,500 crore. (ET).
GMR Hyderabad International Airport Limited (GHIAL), which runs the Rajiv Gandhi International Airport (RGIA) at Shamshabad in Telangana plans to double the capacity to handle 50 million passengers per annum (MPPA) from the existing 25 MPPA with an investment of Rs. 8,500 crore. As per the latest depositories data, foreign portfolio investors (FPIs) pulled out a net sum of Rs 14,382.59 from equities during July 1-26, but invested Rs 10,624.15 crore in the debt segment, taking the total net outflow to Rs 3,758.44 crore. Prior to this, FPIs infused a net Rs 10,384.54 crore in June, Rs 9,031.15 crore in May, Rs 16,093 crore in April, Rs 45,981 crore in March and Rs 11,182 crore in February into the capital markets (both equity and debt). In more news, government has prohibited mining of atomic minerals by private entities and will grant operating rights to only state-run companies to “safeguard” strategic interest of the country, according to a gazette notification issued on Saturday. (BL).
Encouraged by higher output of 4.84 per cent in the first half, indications are that India’s tea production in the current calendar is heading for a new record. Production would have been higher but for a marginal fall of 0.09 per cent in North India, where the output dropped to 125.86 mkg from 125.97 mkg in June 2018. In more news, the Kerala Infrastructure Investment Fund Board (KIIFB), the infrastructure funding arm of the Kerala government, will give Rs.6,000 crore as grant to the National Highways Authority of India (NHAI) to part-finance the four/six-laning of some 565 km of national highways in the state. India’s national highway development agency estimates a funding of Rs.48,000 crore to convert 565 km of two-lane highways into four/six-lanes, close to half of which would be used to acquire land. (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 higher on Friday as market participants continued to digest earnings and some better-than-expected economic growth figures for the second quarter. The Dow Jones Index closed at 27,192, up 51.47 points by 0.19%. The Standard & Poors 500 index closed at 3,026, up 22.19 points by 0.74%. The Nasdaq Composite Index closed at 8,330, up 91.67 points by 1.11%.

FTSE 100

UK markets closed higher on Friday, boosted by well-received results from the likes of Vodafone and Pearson, as investors eyed the release of US second-quarter GDP data and were still looking for final results from Sports Direct. The FTSE 100 index closed at 7,549, up 60.01 points by 0.80%.

 
 
Global Indices
26/07/2019 Clsg Chg%
Dow Jones 27,192 +0.19
NASDAQ 8,330 +1.11
FTSE 100 7,549 +0.80
Bovespa 102,819 +0.16
29/07/2019 Latest
(5:30AM IST)
Chg%
Nikkei 21,658 -0.45
Hang Seng 28,398 -0.69

Nikkei

Asia stocks started trading on a negative note early on Monday as the investors will keep a close watch on the global markets. Nikkei is currently trading at 21,658, down 98.40 points by 0.45%.

Precious Metals

Gold futures finished Friday in positive territory, following the first estimate of second-quarter U.S. gross domestic product, which indicated the economy was healthy but slowing and might still warrant an interest-rate cut by the Federal Reserve.

Base Metals

Aluminium’s three-month price on the London Metal Exchange was lower at the close of trading on Friday July 26, falling by around 1.3% against a flurry of fresh inflows into LME-registered Asian warehouses.

Crude Oil

Oil futures flipped between small gains and losses Friday, with crude on track for a modest weekly gain as traders continue to fret over prospects for demand growth.

 
 
 

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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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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.