News and Global Index updates.

🌹 🌞Good Morning 🌞🌹

*SGX Nifty +172 pts (17126) from last trade 16954 ,*  

Nikkei +74 pts , 

Hangseng +25 pts , 

Now @6.52am . 

Dow +332.04 pts ,

Nsdq +130.17 pts, 

S&P +48.82 pts, 

Bovespa +1158 pts , 

Ftse -2 pts , 

Dax +115 pts , 

Cac +81 pts , 

Crude @ $97.46 brl (+1.04), 

Brent @ $108.00 brl (+0.86) , 

Gold @ 1753.70 (+17.30), 

Silver @ $19.98 (+0.11), 

Euro @ $1.0196, 

JPY @ $134.51,  

INR @ 79.635

*Today's Corporate Action*

*29th July Ex Date*

CLEAN

Final Dividend - Rs. - 3.2500

DVL

Final Dividend - Rs. - 4.0000

EMKAY

Final Dividend - Rs. - 1.2500

SAINTGOBAIN

Dividend - Rs. - 1.5000

SAINTGOBAIN

Special Dividend - Rs. - 1.5000

SAYAJIIND

Dividend - Rs. - 1.0000

TCFCFINQ

Dividend - Rs. - 1.2000

VINYLINDIA

Dividend - Rs. - 5.0000

VINYLINDIA

Special Dividend - Rs. - 5.0000

*Today's Key Results/Board Meetings*

*29-Jul-22*

HDFC, NTPC, Sun Pharma, Cipla, Indian Oil Corporation, Ashok Leyland, DLF, Emami, Exide Industries, Nazara Technologies, Piramal Enterprises, CARE Ratings, CarTrade Tech, Cholamandalam Investment, CreditAccess Grameen, Deepak Fertilisers, Easy Trip Planners, 3i Infotech, Great Eastern Shipping, GMR Infrastructure, Godrej Agrovet, Heritage Foods, JK Paper, Mahindra Logistics, Metro Brands, Rain Industries, Route Mobile, Strides Pharma Science, Star Health and Allied Insurance Company, Torrent Pharmaceuticals, VST Industries, and Zydus Wellness will be in focus ahead of June quarter earnings on July 29.

*Stock under F&O ban on NSE*

*29-Jul-22*

None

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• India Airwave Bids at $18.8B Third Day; Auction to Resume Friday

• India Wants to Open Up For Lithium Mining in Batteries Quest

o Govt is seeking to change current mining laws

• Agarwal’s Vedanta Misses Profit Estimate on Higher Costs

o Total costs during the qtr increased 48% from a yr ago

• Indians’ Desperation for State Jobs Shows Unemployment Crisis

o Data for last eight years show recruitments on a decline

• Indian Firm to Invest Up to $8 Billion in Egypt Hydrogen Project

• India Finds Carriers Improperly Identified Cause of Defects

• Billionaire Adani’s Shadow Bank Plans IPO as Soon as 2024

o Adani Capital aims for a $2 billion valuation in offering

• Resilient Home Demand Helps India Wood Ply Firm Tackle Inflation

• Billionaire CEO Seeks to Reset Fintech Pioneer After IPO Fiasco

• Nomura Favors India NDOIS Steepener Trade on Swap Rally

• SEBI Fines Singh Brothers INR100M Each in Religare Case

• Global Funds Buy Net INR16.4B of India Stocks on Wednesday: NSE

o Domestic funds buy net 6b rupees of stocks

• Foreign Investors Sell Net INR940M of Indian Equities Wednesday

• India has done more than its fair share to fight climate change: Govt: PTI

• Bank credit rises 12.89 pc; deposit 8.35 pc: RBI data: PTI

• Honda to discontinue Jazz, WR-V and 4th generation City in India: PTI

• Ola Electric inks pact with heavy industries ministry for making advanced batter cells: PTI

• RBI sticks to October 1 deadline for card tokenisation: Economic Times

• Tata Neu CTO Sauvik Banerjjee quits four months after launch: Economic Times

• 4:00pm: India Fiscal Deficit in rupees for April-June, prior 129,075 crore

• 5:30pm: June Eight Infrastructure Industries, prior 18.1%

• Aban Offshore (ABAN): Gets rig contract from ONGC for three years

• Ajanta Pharma (AJP): 1Q Net Income +0.6% Y/y to 1.75b rupees, beats est. 1.54b; revenue +27% to 9.51b

• Dr Reddy’s Lab (DRRD): 1Q Net Income 11.9b rupees vs. 5.7b y/y, beats est. 6.99b; revenue +6.1% to 52.2b

• Equitas Small Finance Bank (EQUITASB): 1Q Net Income 970.1m rupees vs. 119.3m Y/y, misses est. 1.31b; Goss NPA 4.1% Vs. 4.14 q/q

• Jubilant Foodworks (JUBI): To buy 40% in Roadcast Tech Solutions for 149.5m rupees

• Mangalore Refinery and Petrochemicals: 1Q Net Income Beats Estimates

• Motilal Oswal Financial (MOFS): 1Q net income 312.6m rupees Vs. 2.21B Y/y; Revenue -16% 7.53b

• Nestle India (NEST): Nestle India 2Q Net Income 5.15B Rupees, Est. 5.74B Rupees

• Nippon Life India AM (NAM): 1Q Net Income -37% Y/y to 1.14b rupees, misses est. 1.71b; revenue +4.6% to 3.16b

• PNB Housing (PNBHOUSI): PNB Housing 1Q Net Income +1.3% Y/y to 2.38b rupees, beats est. 1.62b; revenue -16% to 14.04b

• Punjab National Bank (PNB): 1Q Net Income 3.1B Rupees Vs. 10.2B Rupees Y/y, provisions -1.3% q/q to 47.9b; Gross NPA 11.3% Vs. 11.8% q/q

• Religare Enterprises (RELG): SEBI Fines Singh Brothers INR100M Each in Religare Case

• SBI Life Insurance (SBILIFE): 1Q Net Income +18% Y/y to 2.63b rupees, misses est. 4.53b; Net premium income +33% to 110.4b

• Shriram Transport Finance (SHTF): 1Q Net Income 9.65b rupees vs. 1.7b Y/y, est. 10.4b; revenue +11% to 51.4b

• TVS Motor (TVSL): TVS Motor 1Q Net Income 3.21b rupees vs. 531.5m Y/y, beats est. 3.03b; revenue +53% to 60.1b

• Vedanta (VEDL): 1Q net income +4.7% Y/y to 44.2b rupees, misses est. 45.73b; revenue +36 to 382.5b

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*💢News and Impact💢

 

·       Expects market to open on a strong note on account of smart rally in the global markets. Strong  US and India corporate results and positive statement by the US Fed chairmen will be boosted market sentiment. US markets closed to 7-week high (Dow, Nasdaq gained over 1% each) after Amazon.com Inc. and Apple Inc announced better than expected quarterly results and expectations of shallower Federal Reserve monetary tightening. SGX Nifty is up 200 points or 1.2% and Nasdaq Composite gained over 1%. US quarterly GDP reported lower than expectation at -0.9% (expectation was 0.4% growth), following a 1.6% contraction in the first quarter. Market have discounted lower than expected US Q2 GDP data and the two-year US yield sank as much as 19 basis points and the 10-year rate slid to the lowest since April. Sentiment positive after the US Fed’s 75 basis points hike that came in line with estimates has helped soothe investors’ concerns about further aggressive tightening. Chair Jerome Powell said the pace of hikes will slow at some point and policy will be set meeting-by- meeting. In the domestic front, strong quarterly results announced like Bajaj Finance, Bajaj Finserv, Asian Paints, L&T, UltraTech will be added fuel in the market sentiment. Expects IT stocks, NBFC and Metal stocks positive. In the US - Astra Zeneca, Exxon Mobile and P&G will announce quarterly results today.

 

·       U.S. stocks fished higher on Thursday, with large-cap benchmark S&P 500, Nasdaq Composite  and Dow Jones (up over 1% each) booking their highest close in roughly seven weeks as investors digested second-quarter GDP data, a flurry of corporate earnings reports and the latest interest rate-hike from the Federal Reserve.

 

·       Asian stocks advanced after the Federal Reserve said it will slow the pace of interest-rate increases at some point and strong US quarterly results. South Korea, Japan, Australia and Taiwan Index gained half to one percent.

 

·       European stocks rose on bets the Federal Reserve will slow the pace of interest rates hikes and as investors digested results of the busiest earnings day of the season, while concerns over an economic slowdown weighed on the sentiment. Both Germany and France Index gained 1% each.

 

·       Brent Crude gained 2%t to $107/bbl as investors juggled signs of tightening markets against concerns of an economic slowdown. Prices are more likely to rise than fall as tight supply outweighs any risks to demand, Shell Plc Chief Executive Officer Ben van Beurden said on Thursday after the company posted record profit in the second quarter.

 

·       Gold gained 1% to 2-week high of $1755/ounce amid speculation that the Federal Reserve will slow the pace of interest rate increases as the US economy slows. Bullion’s climb, which was supported by a weaker dollar and declining Treasury yields 

 

·       Actionable -   NOCIL, ICICI Bank, Tech Mahindra, SBI Life

 

·       Brokers Radar – Nomura TGT on L&T at 2065.  Dr Reddy TGT by Morgan Stanley at 5099, Jefferies TGT at 5224, Citi TGT at 4750, Credit Swiss TGT at 4050. Nestle TGT by Citi at 21600 and Macquarie TGT at 19250. ms 5099, Jef 5224, Citi 4750, CS 4050, Nestle – Citi 21600, MAC 19250, SBI LIFE – Morgan Stanley TGT at 1500, Jefferies TGT at 1580 Goldman Sachs TGT at 1580 and Citi TGT at 1665.

 

·       Corporate Action  –  AMI Organics Rs3, Dhunseri Venture Rs4, Anup Engineering Rs8, Vinyl Rs5 and special dividend Rs5, Clean Science Rs3.25.

 

·       Events – Yes Bank Board meeting for Fund raising 

 

·       Global Data - Personal Spernding and Personal Income (US). Quarterly GDP, Retail Sales, Housing Price Index (France), CPI and Mortgage Application (UK)

 

·       Results - Ashok Leyland, Cipla, Credit Acesses German, Deepak Fertlizer, DFM Foods, Emami, Exide Industries, Godawari Power, HIL, Heritage Food, HDFC, IOC, Mahindra Logistic, Rain Industries, Route Mobile, Star Healt, Sun Pharma, Torrent Pharma and Sundaram Finance.

 

·       US Results - Astra Zeneca, Exxon Mobile and P&G

 

·       Market Summary – SBI Life, Shriram Transport, Jubliant Food, TVS Motor and NOCIL announced better than expected Q1 results. M&M Finance, Dr Reddy’ Lab and Shree Cement announced lower than expected Q1 results. Vedanta reported inline with expected Q1 Bresults,   Nestle India to acquire pet foods business of Purina Petcare, Adani’s Shadow Bank Plans Mumbai IPO as Soon as 2024

 

·       Cochin Shipyard: The company has delivered first indigenously built Aircraft Carrier (IAC-1) to the Indian Navy. It is the largest warship ever to be built in India having a deep displacement of 45,000 tons.- positive

 

·       Nestle said it will acquire the pet foods business of Purina Petcare India for Rs 123.5 crore, providing Nestle an access to the fast-growing business in the country - Long term positive

 

·       Adani Enterprises - A non-bank lender backed by Gautam Adani, Asia’s richest person, is planning to raise at least Rs1500cr in an initial public offering (IPO) that could take place as early as 2024.- Positive

 

·       Indus Tower CEO Bimal Dayal to quit, company to pursue opportunity outside company - negative

 

·       KEC International has secured new orders of Rs. 1,233 crores across its various businesses – positive

 

·       TCS has announced its partnership with The Walton Centre NHS Foundation Trust (The Walton Centre), to develop digital solutions that will increase the productivity of specialists, reduce waiting times for patients, and enhance the experience. – Positive

 

·       Everest Kanto - CARE assigned a short-term ‘CARE A2’ rating against existing ‘CARE A3+’ on instruments with stable outlook - Positive

 

·       BirlaSoft announced strengthening of its relationship with SAP by leveraging RISE with SAP to transform its digital landscape onto the cloud. With enterprises adopting a 'Cloud-First' strategy, Birlasoft will be able to significantly accelerate their clients' transformation journeys. – positive

 

·       Titagarh Wagons plans to invest over Rs 1,000 crore over the following three to five years to increase capacity in the production of wagons, coaches, and foundries. – positive

 

·       Restaurant Brands Asia has acquired exclusive master franchise and development rights in Indonesia to develop, establish, own, operate, and to grant franchises, of POPEYES® Restaurants.- positive

 

·       Exide Industries has executed the lease cum sale agreement on 26th July 2022 for procuring land parcel admeasuring 80 acres at Hitech, Defence & Aerospace Park, Phase-2, Bengaluru with Karnataka Industrial Areas Development Board (KIADB).- positive

 

·       Bajaj Finserve announced impressive Q1 results. Announced bonus and stocks split may positive on the stock. Company reported Q1 net profit Rs1310cr (up 57% YoY), board approves bonus 1:1, company announces stock split each share into 5 and Income Rs15890cr (up 14% YoY)

 

·       Nestle announced lower than expected quarterly Ebitda and Ebitda margin. Cpompany reported reported Q2 Net profit Rs515.3cr (down 4.3% YoY)– expectation Rs580cr, Ebitda Rs849cr (up 2.3%) – expectation Rs900cr, Ebitda margin 21% vs 24% (YoY)- expectation 23% and Income Rs4036.5cr (up 16.1% YoY) – Expectation Rs3930cr

 

·       Jubliant Food announced better than expected Q1 Ebitda and Ebitda margin. Company reported Q1 Profit Rs113cr (up 66% YoY), Ebitda Rs304cr (up 44% YoY) – expectation Rs294cr, Ebitda Margin 24.2% vs 24.1% (YoY)- expectation 25% Income Rs1255 (up 43% YoY) – Expectation Rs1187cr and Same store sales growth (SSG) 28.3%cr vs 120.4% - expectation 27%

 

·       Shree Cement announced lower than expected Ebitda and Ebitda margin. Company reported Q1 net profit Rs315.5cr (down 42% YoY) – expectation Rs492cr, Ebitda Rs819cr (down 19% YoY) – expectation Rs865cr, Ebitda margin at 19.5% vs 29.4% (YoY) – expectation 21.5% and Income Rs4203cr (up 22% YoY) – expectation Rs4028cr

 

·       NOCIL announced strong Q1 results. Company reported better than expected Q1 Ebitda and Ebitda margin. Q1 net profit Rs66cr (up 40% YoY) – expectation Rs36.4cr, Ebitda Rs102.6cr (up 41% YoY) – Expectation Rs59.4cr , Ebitda margin at 20% vs 21.1% (YoY)- expectation 13.6% and Income Rs509cr (up 48% YoY) – expectation Rs437.7cr

 

·       SBI Card announced better than expected operating profit and stable asset quality. Company reported Q1 net profit up 8% (QoQ) to Rs626.9cr – expectation Rs534cr, GNPA 2.24% vs 2.2% (QoQ), NPA at 0.79% VS 0.9% (QoQ), Provision Rs450cr (down 30% YoY) – expectation Rs548.4cr, Operating profit Rs1291.2cr (up 23% YoY) – expectation Rs1265cr and NII Rs1080cr (up 17% YoY) – expectation Rs1056cr

 

·       Dr Lalpath Labs announced lower than Bloomberg estimates Ebitda margin. Company reported Q1 Revenue down 17% at Rs 503 crore Vs Rs 607 crore (Bloomberg estimate : Rs 499 crore),  Net profit down 56% to Rs 58 crore Vs Rs 131 crore (Bloomberg estimate : Rs 66 crore Profit), EBITDA down 38% to Rs 118 crore from Rs 189 crore (Bloomberg estimate : Rs 122 crore Profit) and Ebitda Margins at 23.4% Vs 31.2% (BBG estimate : 24.5%)

 

·       M&M Finance announced lower than expected Q1 results. Company reported Q net profit Rs223cr vs loss Rs153cr – expectation Rs377cr , NIM at 8.25 and NII Rs1554cr (up 34% YoY) – expectation Rs1583cr

 

·       Shiram Transport Finance announced better than expected NII and net profit. Company reported Q1 Net profit Rs965.3cr (up 467% YoY) – expectation Rs891cr, GNPA 7 vs 7.07% 9QoQ), provision Rs805cr (down 46% YoY) – expectation Rs738cr and NII Rs2687cr (up 36% YoY) – expectation Rs2403cr

 

·       Vedanta Q1 reported better than expected Income and Ebitda. Company reported Q1 net profit Rs4421cr (up 4.7% YoY) – expectation Rs5780cr, Ebitda Rs9826cr (up 1.7% YoY) – expectation Rs11260cr, Ebitda margin 32% vs 41% (YoY) – expectation 30.5%  and Income Rs38350cr (up 36% YoY) – expectation Rs36870cr

 

·       Dr Reddy announced lower than expected Q1 results both Ebitda and Ebitda margin. Company reported Q1 net profit Rs394r (down 31% YoY) - expectation Rs1039cr, Ebitda Rs694cr (down 23% YoY) – expectation Rs1025cr, Ebitda margin at 13.9% vs 18.3% (YoY)- expectation 19.6% and Income Rs4985cr(up 1.3% YoY) – expectation Rs5228.5cr

 

·       TVS Motor announced better than expected Q1 net profit and Ebitda. Company reported Q1 net profit Rs321cr (up 328% YoY) expectation Rs289cr, Ebitda Rs599cr (up 118% YoY) – expectation Rs583.6cr, Ebitda margin at 34.1% vs 18.3% (YoY)- expectation 19.6%, Ebitda margin at 10% vs 7% (YoY) – expectation 9.8% and Income Rs6010cr(up 53% YoY) – expectation Rs5928.5cr

 

·       SBI Life announced strong Q1 results. Net premium income grew 33% YoY to Rs11040cr – in line with expectation Rs11085cr, Shareholder PAT grew 18% YoY to Rs260cr – expectation Rs270cr. Renewal premium grew 14% YoY to Rs5760cr – inline at Rs56499cr. Total new business APE grew robustly by 79% YoY (7% beat) to Rs2900cr.  1QFY23 VNB grew robustly by 132% YoY to Rs880cr – Rs688.7cr. VNB margins thus expanded 670bp YoY/360bp QoQ to 30.4% (expectation 25.3%).

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