News and Global Index updates.

🌹 🌞Good Morning 🌞🌹

*Sensex-74(58064) Nifty -35( 17310,*  

Nikkei +144 pts , 

Hangseng +176 pts , 

Now @6.52am . 

Dow -402.23 pts ,

Nsdq -20.22 pts, 

S&P -27.44 pts, 

Bovespa +1136 pts , 

Ftse -4 pts , 

Dax -30 pts , 

Cac -27 pts , 

Crude @ $93.91 brl (-0.51), 

Brent @ $100.54 brl (+0.00) , 

Gold @ 1772.90 (-16.80), 

Silver @ $19.81 (-0.32), 

Euro @ $1.0153, 

JPY @ $133.38,  

INR @ 78.585

*Today's Corporate Action*

*3rd Aug Ex Date*

ANUHPHR

Final Dividend - Rs. - 1.7500

DISAQ

Final Dividend - Rs. - 10.0000

EKENNIS

Final Dividend - Rs. - 1.0000

ESABINDIA

Final Dividend - Rs. - 20.0000

GREAVESCOT

Final Dividend - Rs. - 0.2000

HERCULES

Final Dividend - Rs. - 1.2500

HERCULES

Special Dividend - Rs. - 0.6000

KIRLOSENG

Final Dividend - Rs. - 2.5000MARUTIFinal Dividend - Rs. - 60.0000V

ICTMILL

Final Dividend - Rs. - 50.0000

*Stock under F&O ban on NSE*

*3-Aug-22*

1ESCORTS

*YESBANK: ADITYA PURI TO JOIN YES BANK BOARD - ET NOW*

YES BANK BUYER CERCIT TODAY. POSSIBLE

WHAT HAPPENED OVERNIGHT*

- SPX -0.67%, Nasdaq -0.16%

- Big jump in UST yields; 10y +18 bps to 2.75%

- Fedspeak was unequivocally hawkish

- Oil -0.1% to $99.96, OPEC+ meets today

- Pelosi landed, China responded, no shocks yet!

- Focus remains on US/Taiwan & China headlines.

●News and Impact●

 

 

·       Expects market to open on a positive note on account strong domestic cues and mixed bag opening in the Asian market. Undertone bullish sentiment in the domestic markets on account of better than expected quarterly earnings and encouraging economy data announcment like 8-month high July Manufacturing PMI, GST collection at Rs1.48 lakh cr, strong FIIs buying interest, Jobless rate falling to 6-Month low and above rainfall monsoon. Moreover, Brent Crude fell to 1-month low to below $99/bbl and FIIs were net buyers nearly Rs6000 in five trading sessions which will be added fuel in the market sentiment. SGX Nifty is up by 55 points or 0.3% and US Dow Future advance 80 points (0.2%). Among the global markets, US Dow Jones slipped over 400 points following more hawkish comments from US central bankers and Geopolitical tension between US-China and Taiwan. US 10-Year bond yield spiked nearly 20bps to 2.74% and US Dollar Index surged to above 106 from 105 after US Fed officials signalled the central bank is still intent on raising rates until inflation is under control. OPEC+ meeting will be held today and India’s MPC meeting commence from today ahead of RBI policy to announce on Friday. Interest sensitive stocks like Banking, Auto and NBFC stocks will be focus ahead of RBI policy meeting this week.

 

·       US Dow slipped over 1% (402 points) after Federal Reserve officials signalled the central bank is still intent on raising rates until inflation is under control. Treasury yields rose across the curve, with 10-year rates climbing as much as 20 basis points to 2.74%. The S&P 500 dropped for the second straight day as Nancy Pelosi’s arrival in Taiwan prompted China to announce missile tests, even as she said her visit did not alter longstanding US policy in the region. The Nasdaq 100 also ended the day down marginally by 0.2%.

 

·       Stocks struggled for traction in Asia on Wednesday and the dollar climbed as investors evaluated

·       heightened US-China tension and hawkish Federal Reserve comments. Taiwan Index marginally decline while Japan and South Korea Index gained half percent.

 

·       Stock markets across the globe are flashing red as investors brace for renewed political tension between the US and China, pulling down European shares to close lower on Tuesday. UK, Germany and France Index gained.

 

·       Oil slipped 1% to $100/bbl before an OPEC+ meeting today as traders wait to see whether the group will heed a US call to boost supply and OPEC’s crude production rose to a two-year high last month.

 

·       Gold held a decline by 1% to $1664/ounce as a resurgent dollar and bond yields weighed on the precious metal, with investors assessing an apparent hawkish turn from the Federal Reserve.

 

·       Actionable – M&M, Asian Paints, Kotak Bank, IDFC, Lemon Tree Hotel, Siemens  

 

·       Brokers Radar – Siemens TGT by Nomura at 2710, Godrej Properties -  JP Morgan TGT AT 1710, Jefferies TGT at 2125, Morgan Stanley TGT at 1487. Nomura TGT on Ashok Leyland 180, UBS TGT on Bank of Baroda at 125. Indus Tower TGT by Credit Swiss at 175 , Voltas TGT by Morgan Stanley at 1168, Macquarie TGT at 937, Ultraa Tech TGT by CLSA at 7365

 

·       Corporate Action  – Maruti Suzuki Rs60, Esab India Rs20, Bayer Corp, Kirloskar Oil Rs2.50, Kopran Ltd Rs3

 

·       Events – OPEC + Meeting, RBI MPC meeting from today (Friday RBI policy)

 

·       Global Data – Mortgage Application, Service PMI, Composite PMI and Factory Orders (US),

 

·       Results - Adani Power, Adani Transmission, Adani Wilmer, BASF, Birlasoft, Chambel Fertlizer, Divyani International, Fisrtsource Solution, Godrej Consumers, Inox, JMC Projects, KEC International, Lupin, PI Industries, TAJ GVK and Tata Coffee

 

·       Market Summary – ITC Exits Lifestyle Retailing Business, Tata Power Ties Up With JLL India to Promote Green Energy, Godrej Properties announced better than expected Q1 Ebitda and Income, Jubliant Pharmova announced and Voltas announced lower than expected Ebitda and Ebitda margin, Shriram Transport Gets CCI Approval For Amalgamation Scheme, LTI Strengthens Strategic Collaboration with Microsoft, Adani Ports Records Cargo Volumes In July, TCI announced impressive Q1 results.

 

·       ONGC, Reliance, MRPL and Oil India focus - Govt cuts windfall tax on fuel export, raises levy on domestic crude oil - The government has once again revised the newly-introduced windfall tax levied on crude, diesel and jet fuel (ATF), according to a government notification issued on Tuesday. The tax on domestically produced crude oil has been raised to Rs17,750 ($226.14) per tonne from Rs17,000 per tonne, whileexport taxes on jet fuel has been cut to zero from ₹4 per litre – Positive

 

·       IDFC gets CCI approval for disinvestment of IDFC AMC – Positive  

 

·       ITC Ltd. has exited the lifestyle retailing business it entered almost two decades back as part of a restructuring.“Following a strategic review of its business portfolio, the company has exited the lifestyle retailing business,” it said in an exchange filing on Tuesday

 

·       Shriram Transport Finance: Non-Banking Finance Company (NBFC) Shriram Transport Finance (STFC) on Tuesday said it has received approval from the Competition Commission of India (CCI) for its merger with Shriram City Union Finance Company. – Positive

 

·       LT Infotech (LTI) has announced the expansion of its collaboration with Microsoft to focus on developing high-value cloud solutions for enterprises. As a part of this multi-year collaboration, LTI has launched a dedicated Microsoft business unit that develops and offers end-to-end digital transformation solutions.- positive

 

·       HG Infra received the completion certificate for the construction of a Eight Lane Carriageway starting at the Haryana-Rajasthan border and Delhi – Vadodara Green Field Alignment on EPC Mode worth Rs997.11cr – positive

 

·       WardWizard Innovations and Mobility Ltd, manufacturer of country’s one of leading electric two-wheeler brand ‘Joy e-bike’, sold 2,458 ( up 160% YoY) units of electric two-wheelers in July 2022. – Positive

 

·       Krsnaa Diagnostics - Agreement with the Government of Punjab for procurement, the company has operationalized diagnostics centers at three more locations.- Positive

 

·       EaseMyTrip has announced, the commencement of its premium festive season offers package. The travel carnival sale is live on EaseMyTrip from Monday onwards. The sale will run from August 1-10th, 2022 and will be the home to some spectacular deals. – positive

 

·       Barbeque Nation has approved the acquisition of equity shares constituting 6.34% Paid-up Share Capital of Red Apple Kitchen Consultancy Pvt (Toscano) a Subsidiary of the Company. The acquisition is from the existing shareholders of Toscano for a total consideration of Rs7.66 crore – positive

 

·       Pfizer informed that Mylan Pharma has received the requisite regulatory approvals for purchasing Pfizer’s Upjohn business. Pfizer has received a purchase consideration of Rs180.48 crore from Mylan and transferred its Upjohn Business – positive

 

·       GMM Pfaudler subsidiary GMM Pfaudler US Inc., USA has approved the execution of a joint venture agreement with JDS Manufacturing (JDS), USA, GMM Pfaudler USA will acquire a 51% stake for a consideration of US $0.5 million. JDS Manufacturing is a glass-lined spare parts, components, and re-glassing services provider. – positive

 

·       SML ISUZU has sold 1020 vehicles during July 2022, as compared to 551 vehicles during July 2021, increase of 85% (YoY) – Positive .

 

·       Cantabil Retail India announced its monthly business update for July month 2022 - Company has opened 7 New Showrooms/ Shops at different location in India during the month of July 2022 and now the total number of Showrooms of the Company stands at 408. – Positive

 

·       Power stocks – IEX, Tata Power, Adani Power and JSW Energy - In July, electricity consumption increased slightly, year over year, by 3.8% to 128.38 billion units (BU), according to figures from the power ministry. The amount of power consumed in July of last year was 123.72 BU, which was more than the 112.14 BU consumed in the same month of 2020. – positive for – IEX, Tata Power, Adani Power and JSW Energy.

 

·       STL Tech  one of the industry's leading integrators of digital networks, today launched a comprehensive suite of optical connectivity solutions to empower India's 5G readiness. With initial rounds of spectrum auctions taking place – positive

 

·       Tata Power has signed a MoU with JLL India to promote green energy solutions in the realty space. With the real estate sector contributing nearly 40% of all greenhouse gas emissions, it is time to think green and to lead the realty sector towards green energy adoption.- positive

 

·       Shakti Pumps has invested Rs5.4cr in its wholly owned subsidiary i.e. Shakti Green Industries PVT into the business of manufacturing of EV Chargers, EV Motor and controllers.- positive

 

·       Rattanindia Enterprise has announced that its subsidiary Throttle Aerospace Systems (TAS) has received an approval to migrate its website to Aero Domain.- positive development

 

·       Adani Port- April-July average run rate is at 30.5 MMT. July volume is up 13% year-on-year. Key ports that helped drive monthly volume growth are Mundra (12% YoY), Krishnapatnam (16% YoY), Tuna (81% YoY), Kattupalli & Ennore combined (87% YoY), and Dahej (69% YoY).- positive

 

·       Ajmera Realty it has acquired 1,721 square metres of land in Mumbai for Rs 42.5 crore to develop a housing project with an estimated sales revenue potential of Rs 250 crore – positive

 

·       IndiaGrid to acquire 100% shares holding in Raichur Sholapur Transmission for Rs250cr - Positive

 

·       SpiceJet has entered into a full and final settlement with the Airports Authority of India (AAI) and has cleared all outstanding principal dues of the airport operator.- Avoid

 

·       Datamatics, a Global Digital Technologies, Operations, and Experiences Company,  announced that it has signed a technology partnership with Apromore, the leading provider of process mining and predictive process monitoring technology.- Positive

 

·       Yes Bank - Television channel ET NOW on Tuesday cite unnamed sources to say Aditya Puri, the former managing director of HDFC Bank and currently senior advisor at Carlyle Group, is likely to get a board seat in Yes Bank. Shweta Jalan to represent Advent on the bank’s board – Traders wait for further clarity …poor balance sheet is a concern

 

·       Shivalik Rasayan Ltd has entered into a long term marketing agreement with China Chinopharma to supply DMF grade BUSALFAN, API. - positive

 

·       Poonawala Fincorp - CARE Ratings has assigned 'CARE PP MLD AA+; Stable' rating to the Proposed Principal Protected Market Linked Debentures of Poonawalla Fincorp – positive

 

·       Kotak Mahindra Bank: A Kotak Mahindra Bank arm is targeting to raise up to Rs1,500 crore to invest in private equity and venture capital funds.- positive

 

·       Aurobindo Pharma has received three observations from the US Food and Drug Administration following the inspection of the company's Unit XI API non-antibiotic manufacturing facility in Pydibhimavaram in Andhra Pradesh, India.- negative

 

·       Eclerx Bonus - Board Meeting to be held on Tuesday, August 9, 2022 to inter-alia consider issuance of Bonus equity shares of the Company.

 

·       Indian Oil (IOC) plan to invest Rs35000cr in refinery downstream operation

 

·       Godrej Properties announced better than expected Q1 results and we are long trem positive on the stock. Company reported Q1 net profit Rs45.55cr (up 168% YoY) – expectation Rs102.6cr, other income Rs182cr (up 3.4% YoY)- expectation Rs178cr, Ebitda loss Rs14.2cr vs Loss 63.5cr – expectation Loss Rs65cr, Ebitda margin -5.8% vs -73.7% (YoY) - expectation -6.6% and Income Rs245cr (up 32% YoY) – expectation Rs196.1cr.

 

·       Voltas announced lower than expected Q1 results. Company reported Q1 Net profit Rs109cr (down 10.6% YoY) – 40% below estimates, Ebitda Rs177cr (up 30.4% YoY) – 30% below estimates, Ebitda margin at 6.4% vs 7.6% (YoY) - - expectation 9.5% and Income Rs2768cr (up 55.1% YoY) – 3% below estimates

 

·       Lemon Tree’s announced better than expected Q1 Results. Company reported Q1 Income Rs190cr (up 61% QoQ) – Estimates Rs180cr, EBITDA Rs92.4cr v/s operating loss of  Rs10kah (YoY)– estimates Rs86cr, EBITDA margin came in at 48.1% vs -0.2%  – expectation 46.7% and net profit Rs17.4cr vs loss Rs40.1cr (YoY) – expectation Rs19.6cr

 

·       Jubliant Pharmova announced lower than expected Q1 results. Company reported Q1 Net profit Rs41cr (down 71% YoY) – expectation Rs71.3cr, Ebitda margin 13.2% vs 23% (YoY) – expectation 16.3%, Ebitda Rs192cr (down 49% YoY) – expectation Rs245cr and Income Rs1452cr (down 11% YoY) – expectation Rs1502.6cr

 

·       Bank of India reported marginally improved its asset quality. Bank of Baroda and Canara Bank reported strong Q1 results. Company reported Q1 net profit Rs 561.5cr (down 22% YoY), GNPA at 9.30 vs 9.98%, provision Rs1320cr (down 14% QoQ) and Total Income Rs9970cr (up 7% YoY)

 

·       Tube Investment reported impressive Q1 results. Company reported Q1 Income Rs3799cr (up 56% YoY), Net profit Rs194.6cr (up 55.5% YoY), Ebitda margin at 10.8% vs 11.4% (YoY) and Ebitda Rs412cr (up 485 YoY)

 

·       TCI reported Q1 Income Rs900cr (up 30% YoY) – expectation Rs863.2cr,  EBITDA margins at 11.5% vs 10.9% (YoY)- expectation 11.8% , EBITDA  Rs104cr (up 37% YoY) – Expectation Rs102cr and PAT Rs77.7cr (up 66% YoY) – expectation Rs69cr

 

·       Bosch announced strong Q1 results - Net revenue grew 45% YoY to INR35.4b (est. INR33b). EBITDA margin improved by 20bp YoY (down 50bp QoQ) to 12.7% (est. 12.1%) due to operating leverage.  The lower depreciation was offset by a lesser other income, leading to a PBT before EO at INR4.4b (est. INR3.8b).  Adjusted PAT stood at INR3.3b (est. INR 2.9b), up 29% YoY.

 

·       Brigade Enterprises: Realty firm Brigade Enterprises Ltd on Tuesday reported a consolidated net profit of ₹87.68 crore for the quarter ended June on better sales. It posted a net loss of ₹40.09 crore in the year-ago period. Total income jumped more than two-fold to Rs920.28 crore in the first quarter of this fiscal from Rs391.52 crore in the corresponding period of the previous year.

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