Morning Notes
30th Jul, 2019
 

Trading Range:

Nifty opened gap up at 11308 on Monday and made a high and low of 11311 and 11152 respectively before closing negative at 11189.

Review/Outlook:

For the day, support for Nifty exists at 11140 and 11070 levels whereas resistance for Nifty stands at 11240 and 11310 levels.

Review/Outlook:

Bank Nifty opened flat at 29325, made a high of 29593, low of 29105, and closed negative at 29296. 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 37,686 -0.52
Nifty 11,189 -0.84
BSE 200 4,662 -0.88
BSE Midcap 13,763 -0.67
BSE Smallcap 12,926 -1.03
Dow Jones 27,221 +0.11
NASDAQ 8,293 -0.44
 
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 15,611 -3.55
Bankex 33,200 +0.25
PSU 7,051 -1.10
Healthcare 12,797 -1.25
IT 15,536 +0.61
 
Market Turn Over (`cr)
Index 29/07 26/07
BSE Cash 2,107 2,170
NSE Cash 31,389 32,684
NSE F&O 898,331 707,105
BSE Delivery % 42.54 66.95
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 19.80 80.20
BSE 200 28.36 71.14
BSE 500 26.75 73.05
Total BSE 29.50 65.69
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 57.14 +0.47
Gold Rs./ 10 Gms 34709.00 -0.18
Silver Rs./ Kg 41195.00 +0.10
Rs.- US $ 68.78 -0.15
Rs.- Euro 76.68 +0.01
FII (Rs cr )
29/07* 26/07*
FIIs +3013.15 +535.10
MFs - -

*Date refers to the day of activity and not the day on which it is reported.

 
 
Corporate News
The relinquishing of the CEO post by GV Prasad, son-in-law of Dr Reddy’s Laboratories founder K Anji Reddy, will effectively move most of the company’s key executive operations to professionals. In more news, GV Prasad has shed the CEO role in favour of Erez Israeli, the company’s COO, the company said on Monday. Israeli will take over as CEO on August 1. (BL).
The Hyderabad Bench of the National Company Law Tribunal (NCLT) has ordered the liquidation of Hyderabad-based construction and infrastructure company IVRCL Ltd. (ET).
If Pfizer has been the architect of many a deal in the innovative space, this time it is involved in the making of a mighty generic drugs company. And the coming together of Pfizer’s Upjohn division with generic drugs maker Mylan will do just that. (BL).
In its second deal in about two week weeks, drugmaker Cipla has forged an exclusive partnership with biopharmaceutical company, Alvotech, for the commercialisation of AVT02, an adalimumab biosimilar, in select emerging markets. (ET).
Ramco Cements Ltd, a prominent player in South India, is expected to commission about Rs.2,000 crore worth of expansion projects during the current fiscal. The company is implementing a Rs.3,500-crore capacity expansion across six sites, including a greenfield project, to boost the capacity to 20 million tonnes by 2020. (ET).
The Committee of Creditors (CoC) of Empee Distilleries Ltd has unanimously approved the resolution plan submitted by Chennai-based SNJ Distillers Pvt Ltd. Empee is under a Corporate Insolvency Resolution Process (CIRP) for not paying over Rs.300 crore in dues to financial creditors. (BS).
Diageo has set out a plan of action to restructure its Indian subsidiary, United Spirits ushering in changes at the management and distribution levels and revamping brand promotion strategy. (BL).
Ramco Cements Ltd, a prominent player in South India, is expected to commission about Rs.2,000 crore worth of expansion projects during the current fiscal. The company is implementing a Rs.3,500-crore capacity expansion across six sites, including a greenfield project, to boost the capacity to 20 million tonnes by 2020. (BS).
State-owned RINL on Monday said it has conducted trial production of 430 mm steel rounds at its Visakhapatnam plant. The steel rounds will be used for production of forged wheels at RINL’s upcoming unit in Rae Bareli, Uttar Pradesh from September this year. (ET).
IndianOil-Adani Gas Pvt Ltd (IOAGPL) will require a capital expenditure of about Rs.9,600 crore for developing 10 geographical areas (GAs) for City Gas Distribution (CGD) projects. IOAGPL is a 50:50 joint venture between IndianOil Corporation Ltd and Adani Gas Pvt Ltd. (BL).
Infosys on Monday announced the launch of a cyber defence centre in Bucharest, Romania. The centre is an expansion of services delivered through Infosys Digital Innovation Centre, which opened in Bucharest earlier this year. (BL).
Corporate Quarterly Earnings
Realty major DLF on Monday reported over two-fold jump in its consolidated net profit at Rs 414.72 crore for the quarter ending June despite a fall in revenue. Its net profit stood at Rs 172.77 crore in the year-ago period. Total income, however, declined to Rs 1,540.95 crore during the April-June quarter of this fiscal from Rs 1,657.67 crore in the corresponding period of the previous year, the company said in a regulatory filing. The company reported an exceptional income of Rs 296.51 crore, which helped in a significant rise in its net profit. (BL).
Tata Sponge Iron on Monday reported a consolidated net loss of Rs 85.99 crore for the quarter ended on June 30, 2019, due to high finance costs and other charges. The company had posted a net profit of Rs 45.56 crore during the same period a year ago, Tata Sponge Iron Ltd said in a BSE filing. Total income of the company during the quarter under review was at Rs 745.78 crore against Rs 272.84 crore in the corresponding period of the 2018-19 financial year. (ET).
Kansai Nerolac Paints on Monday reported a net profit of Rs 144.69 crore for the first quarter ended June 30. It had posted a net profit of Rs 138.58 crore in the June quarter a year ago, Kansai Nerolac said in a BSE filing. Its total income was Rs 1,549.18 crore during the quarter. It was Rs 1,423.73 crore of the corresponding quarter last year. (ET).
Shriram City Union Finance on Monday reported a 10 per cent rise in consolidated net profit to Rs 260 crore in the quarter ending June compared to the year-ago period. The company had posted a net profit of Rs 236.43 crore in the corresponding April-June period of the previous fiscal. Consolidated income during the June quarter of 2019-20 rose to Rs 1,572.88 crore from Rs 1,475.45 crore in the same period of 2018-19, the company said in a regulatory filing. (BL).
State-owned Cochin Shipyard on Monday reported a 12.06 per cent rise in its consolidated net profit to Rs 118.97 crore for the first quarter ended June 30. The company had clocked a net profit of Rs 106.16 crore in the corresponding quarter of the previous financial year, it said in a regulatory filing to the BSE. Its total income on a consolidated basis for the quarter rose 12.05 per cent to Rs 802.74 crore, compared with Rs 716.40 crore in the corresponding period of the previous financial year. (ET).
Reliance Nippon Life Asset Management (RNAM), asset manager of Reliance Mutual Fund, on Monday reported an increase of 12.91 per cent in consolidated profit at Rs 125.40 crore for the quarter ended June 30, 2019. The company reported a profit of Rs 111.06 crore in the similar quarter a year ago, according to a BSE filing. Total income, however, fell to Rs 360.41 crore from Rs 424.46 crore in the quarter ended June 30, 2018. As on June 30, 2019, RNAM's assets under management stood at Rs 4,30,661 crore, an increase of 6 per cent from the year-ago period. The company's mutual fund assets under management stood at Rs 2,22,576 crore, it said. Its equity assets, including ETF were at Rs 1,15,746 crore, a growth of 19 per cent. (ET).
Dalmia Bharat Sugar and Industries has reported an eight per cent fall in net profit at Rs 54.39 crore for the June quarter of 2019-20 financial year on poor sales. Net profit in the year-ago period stood at Rs 59.11 crore, the company said in a regulatory filing. Total income declined to Rs 600.16 crore during April-June 2019-20 from Rs 658.90 crore in the same quarter of the previous fiscal. (ET).
CK Birla group firm Orient Cement Ltd on Monday reported over three fold jump in its net profit to Rs 55.89 crore for the June quarter. The company had reported a net profit of Rs 16.01 crore for the April-June quarter a year-ago, Orient Cement said a BSE filing. Its total income was up 7.47 per cent to Rs 691.35 crore during the quarter under review, as against Rs 643.24 crore of the corresponding quarter last fiscal. (BL).
Dr Reddy’s Laboratories on Monday said its consolidated profit after tax (PAT) for the June quarter climbed 45 per cent on year-on-year (YoY) basis to Rs 662.80 crore compared with Rs 456.10 crore in the same quarter last year. On sequential basis, the profit surged 53 per cent. The firm said its other income (net) included an amount of Rs 345.70 received from Celgene pursuant to a settlement agreement entered in April. Consolidated revenue for the quarter climbed 3 per cent YoY to Rs 3,844 crore, the company said in a BSE filing. (BL).
State-owned Bank of Maharashtra on Monday reported a net profit of Rs 81.10 crore for the June quarter of 2019-20 financial year as bad assets fell substantially. The bank registered a net loss of Rs 1,119 crore during the year-ago period. Total income in the latest quarter rose to Rs 3,191.88 crore from Rs 2,987.10 crore in the same period of 2018-19, the bank said in a regulatory filing. Gross non-performing assets (NPAs) were down to 17.90 per cent of gross advances at June-end 2019 from 21.18 per cent at the end of June 2018. Net NPAs were Rs 4,856.27 crore, down from Rs 9,195.01 crore in the year-ago period. Thus, provisioning for bad loans and contingencies for April-June 2019 fell down to Rs 920.71 crore from Rs 1,632.88 crore in the same quarter of previous fiscal. (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).
Alembic Pharmaceuticals on Monday posted a 36.75 per cent rise in its consolidated net profit to Rs 123.72 crore for the first quarter ended June 30, driven by robust sales in the US market. The drug firm had reported a net profit of Rs 90.47 crore in the corresponding period of 2018-19. Revenue from operations rose to Rs 948.91 crore in the June quarter as compared with Rs 862.53 crore in the year-ago period, Alembic Pharmaceuticals said in a regulatory filing
Economy and Sector News
The Finance Ministry has imposed definitive anti-dumping duty on all imports of purified terephthalic acid (PTA) from South Korea and Thailand. In more news, Moody’s Investors Service, on Monday, cautioned that economic growth in India over the next 12-18 months will remain weaker than the previous years, which, in turn, could lead to the creation of new non-performing loans (NPLs) in the retail and small- and medium-enterprise segment. However, it said its 12-18 month outlook on the banking system in India is stable. (BL).
BigBasket has raised Rs.100 crore in venture debt from Trifecta Capital, making it one of the largest venture debt transactions in the country. In more news, online grocery start-up Grofers has embarked on a massive customer acquisition spree for the second time in 2019. (ET).
Payments solutions company Pine Labs has received a fund infusion of about Rs.707 crore from its parent, as per the regulatory filings. In more news, Honda Cars India (HCIL) on Monday said it has expanded its campaign to replace Takata driver and passenger front airbag inflators in 5,088 units of previous generation models of the Jazz, City, CR-V, Civic and Accord, as part of Honda’s precautionary global recall campaign concerning Takata front airbag inflators. (BL).
The Murugappa group company EID Parry India has decided to shut down its unit at Pudukottai in Tamil Nadu. In more news, the Ministry of Power, Government of India has recently notified amendments to the guidelines for the award of wind power projects through the tariff-based competitive bidding process, relaxing the timeline for land acquisition to 18 months (in line with the commissioning timeline) from 7 months earlier. This is positive for wind power developers who are experiencing significant delays in project execution due to issues like delays in land acquisition and securing transmission connectivity. (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 Monday, as investors turned their attention towards the Federal Reserve and trade talks between US and Chinese officials which were scheduled to kick-off the next day. The Dow Jones Index closed at 27,221, up 28.90 points by 0.11%. The Standard & Poors 500 index closed at 3,021, down 4.89 points by 0.16%. The Nasdaq Composite Index closed at 8,293, down 36.88 points by 0.44%.

FTSE 100

UK markets outperformed peers on the Continent and across the Atlantic on Monday as the Sterling endured one of its biggest one-day drops since the Brexit referendum and helped by a wave of fresh mergers and acquisitions-related news. The FTSE 100 index closed at 7,687, up 137.55 points by 1.82%.

 
 
Global Indices
29/07/2019 Clsg Chg%
Dow Jones 27,221 +0.11
NASDAQ 8,293 -0.44
FTSE 100 7,687 +1.82
Bovespa 103,483 +0.65
30/07/2019 Latest
(5:24AM IST)
Chg%
Nikkei 21,617 -0.19
Hang Seng 28,106 -1.03

Nikkei

Asia stocks started trading on a negative note early on Tuesday as the investors will keep a close watch on the global markets. Nikkei is currently trading at 21,617, down 41.35 points by 0.19%.

Precious Metals

Gold futures settled slightly higher Monday as a key midweek policy decision by the Federal Reserve loomed.

Base Metals

Base metals prices other than tin and lead had rebounded by the kerb close on the London Metal Exchange on Monday July 29 despite thin trading volumes and a stronger US dollar index.

Crude Oil

Oil futures ended higher Monday, with analysts tying support to the planned resumption of trade talks between the U.S. and China as well as expectations the Federal Reserve will deliver a rate cut when it concludes its policy meeting later this week.

 
 
 

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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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