News and Global Index updates.

🌹 🌞Good Morning 🌞🌹

*SGX Nifty -55 pts (17360) from last trade 17415 ,*  

Nikkei -44 pts , 

Hangseng -137 pts , 

Now @6.52am . 

Dow +76.65 pts ,Nsdq -63.03 pts, S&P 

-6.75 pts, Bovespa +579 pts , Ftse -8 pts , Dax -88 pts , Cac -41 pts , Crude @ $88.36 brl (-0.65), Brent @ $94.20 brl (-0.72) , Gold @ 1790.20 (-1.00), Silver @ $19.775 (-0.06), Euro @ $1.0165, JPY @ $135.21,  INR @ 79.365

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*Following companies will remain No.1 in their domain for next 10 yrs*

✅Pidilite in Adhesives

✅Asian in Paints

✅HDFC in Banks

✅BajajFin in NBFC

✅Titan in Jewellery

✅ITC in Cigarettes

✅Dabur in Juices

✅Divis in API

✅Indigo in Airlines

✅Zydus Well in sweeteners

*Standout Q1 results by these large caps, with 15%+ Sales & Profit growth (YoY) & ROCE>20*

#stockstowatch 

↗️Tata Elxsi

↗️Mindtree

↗️CRISIL

↗️Hindustan Zinc

↗️L&T Info

↗️Crompton Gr. Cons

↗️Coforge

↗️SRF

↗️L&T Tech

↗️Persistent Sys

↗️Mphasis

↗️BEL

↗️Jindal Steel

↗️Polycab

*Stocks that FIIs are buying into*

📌 HAL

📌 VRL Logistics

📌 RHI Magnesita

📌 Tata Coffee

📌 Tata Elxsi 

📌 Thirumalai Chem

📌 Polyplex Corp

📌 Patanjali Foods

📌 One 97

📌 GAEL

📌 Timken India

📌 Chemplast 

📌 Barbeque-Nation

📌 Varun Beverages

Just for Info !

*Top 10 #stocks held by #mutualfunds*

 

✔HDFC Bank

✔ICICI Bank

✔Infosys

✔Reliance Industries

✔HDFC Ltd

✔State Bank of India

✔Bharti Airtel

✔Axis Bank

✔TCS

✔Kotak Bank

*12 Darling Companies of FII where their holding are over 40%*

1. HDFC Ltd

2. ZEE Ent

3. Shriram Trans Fin

4. IndusInd Bank

5. Axis Bank

6. Apollo Hospitals

7. ICICI Bank

8. Kotak Bank

9. Fortis Health 

10. Indus Towers

11. Redington

12. Team Lease 

*These are the best 18 'value added' chemical #stocks*

1.SRF

2.ATUL

3.Aarti Ind

4.Tata Chem

5.Vinati Org

6.Sumitomo

7.Alkyl Amines

8.Navin Flu

9.Sudarshan

10.Neogen

11.Astec

12.Clean Sci

13.Balaji Am

14.Guj Fluo

15.Dipak Nit

16.BASF

17.Jub Ing

18.Galaxy Surf

*Quality small caps #stocks showing consistent growth coupled with high RoE & RoCE*

💫Tips Ind

💫Maithan All

💫AnandRathi Wealth

💫Gufic Bio

💫Tinplate

💫Apollo Tri

💫Supriya Life

💫Rajratan Glb

💫R Systems

💫Sandur Mang

💫Jindal Poly

💫Godawari Pwr

💫Vidhi Spec

💫Cosmo Films

*Quality midcap #stocks with consistent growth coupled with high RoE & RoCE*

✨Easy Trip Plan

✨IEX

✨CAMS

✨Tanla Platforms

✨Chemplast

✨Balaji Amines

✨Clean Sci

✨Esab India

✨Sonata Soft

✨CDSL

✨Fine Org

✨Mastek

✨Angel One

✨KPR Mill

✨Happiest Minds

✨Campus Active

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*Continuous CAPEX coupled by reduction in Debt is a great combination*

List of such quality #stocks : 

1.Balaji Amines

2.Clean Sci

3.Alkyl Amines

4.Happiest Minds

5.Fineotex Chem

6.Mphasis

7.Laxmi Org

8.Saregama

9.ICICI Lombard

10.Route Mobile

11.Safari Ind

12.NIIT

13.D'Mart

*Futures & Options educational trades for the week 8.8.22 to 12.8.22*

(My trade guidelines -appended below - apply).

#stockmarket 

*FUTURES* 

*CANBK* cmp 223.00 buy upto 215.00 stop 213.00 target 232.00/241.00+ 

*JUBLFOOD* cmp 577.20 buy upto 560.00 stop 554.00 target 619.00+ 

*HAL* cmp 2003.00 buy upto 1966.00 stop 1948.00 target 2090.00+ 

*L&T* cmp 1796.00 buy upto 1742.00 stop 1717.00 target 1860.00/1920.00+ 

*TITAN* cmp 2442.00 buy upto 2396.00 stop 2370.00 target 2495.00 / 2560.00+ 

*UPL* cmp 745.30 buy upto 730.00 stop 724.00 target 790.00+ 

*ZEEL* cmp 244.60 buy upto 235.00 stop 231.00 target 259.00+ 

*OPTIONS* 

*BAJFIN ce7300* cmp 235.00 buy upto 110.00 stop 65.00 target 375.00/480.00+ 

*INDUSINDBK ce1030* cmp 34.00 buy upto 18.00 stop 12.00 target 48.00/60.00+ 

*TATAPOWER ce230* cmp 9.20 buy upto 5.00 stop 3.00 target 13.00/19.00+ 

The above trades are given for *educational* purposes only and i am not responsible for any loss or profit. Performance updates will be posted only for *academic* purpose. 

Please note (a) best entry of

Monday is taken (b) the high/low achievement of the week is taken for calculating notional profits (c) *sl on closing basis*.

♦️News and Impact♦️

 

 

·       Expects market to open on a flat to negative note on account soft opening in the Asian markets along with US equity Future. Strong US jobs data Friday added to the case for more US Fed monetary tightening. Expectation that the US Fed may hike interest rate by 75bps (earlier expectation was 50bps) in the September policy meeting after far ahead of US Job data announcement. The two-year US Treasury yield jumped past 3.20% on Friday while the 10-year rate pushed past 2.80% after employers added 528,000 jobs last month, more than double what economists expected. SGX Nifty slipped 54 points or quarter percent and Dow Future declined 85 points or 0.2%. Back home, domestic sentiment is positive on account of Brent crude fell to 27-month low to below $94/bbl and FIIs buying interest. Traders buy on decline strategy in the market while expectation of range-bound market today ahead of holiday tomorrow. Encouraging domestic economy data, impressive quarterly results and above normal monsoon will be added fuel in the market. Key, US, India and China Inflation will announce this week. Fall on oil price will be positive Tyre, Cement and Paints stocks.

 

·       U.S. stocks finished on Friday close on a mixed bag after a surprisingly strong jobs report cast doubt on the Federal Reserve being able to shift away from interest-rate increases anytime soon. Friday's data showed the labor market was doing anything but cooling. The labor market added 528,000 jobs in July -- more than doubling what analysts had estimated and returning payrolls to their pre-pandemic level. Dow Jones gained quarter percent while Nasdaq Composite slipped half percent.

 

·       Asian markets declined after strong US jobs data Friday added to the case for more Federal Reserve monetary tightening. Japan, Hong Kong, South Korea and Australia Index slipped nearly half percent each.

 

·       European stocks fell on Friday as a much stronger-than-expected US jobs report spurred further worries over a tightening of monetary policy by the Federal Reserve. Both Germany and France Index declined over half percent each.

 

·       Oil prices sank to below $94/bbl, extending losses from last week as signs of weak Chinese consumption raised concerns over slowing demand for crude

 

·       Gold traded near a one-month high at $1774/ounce after jumping the most since March on Thursday -- as US-China tensions and a deepening global economic slowdown buoyed demand for haven assets.

 

·       Actionable -   Maruti, Marico, Infosys, Apollo Tyres, Asian Paints

 

·       Brokers Radar – Titan TGT by Morgan Stanley at 2621 and CITI TGT at 2970, SBI TGT by CITI at 630. CITI TGT on BPCL at 420. HPCL TGT by CITI at 295 and Jefferies TGT at 210. From 310. Marico TGT by Morgan Stanley at 605 and JP Morgan TGT at 560.

 

·       Corporate Action  – Ex-dividend - Alkem Labs Rs4, Rupa & Co Rs3, Bharat Electricals Rs1.5, DB Corp Rs3, Chennai Petro Rs2, Honeywell Automation Rs90, Westcoach Paper Rs6 and ICICI Bank Rs

 

·       Global Data – Monday – CPI (Germany).

 

·       Results – Adani Ports & SEZ, Bharti Airtel, Power Grid Corporation, Borosil, Vedant Fashions, Whirlpool of India, Torrent Power, Suven Pharmaceuticals, Astrazeneca Pharma India, Indian Hotels, Housing & Urban Development Corporation, Gujarat Narmada Valley Fertilizers & Chemicals, Delhivery, City Union Bank, KRBL, JK Tyres & Industries, IRCON International, Renaissance Global, Rainbow Children's Medicare, Narayana Hrudayalaya, NSECO, National Aluminum, Samvardhana Motherson International, Mirza International, Subex, Sun Pharma Advanced Research, Sequent Scientific.

 

·       Market Summary – HDFC Bank raises up to $300 million in NRE deposits, Tata Motors Agrees to Buy Ford’s Gujarat Plant for $92 Million, Adani Ports SEZ, AD Ports Group to make Joint Infrastructure investment in Tanzania, RBI raised its policy rate by 50bps in a bid to tame elevated inflation, Govt. to Allow Extra 1.2M Tons of Sugar Exports: Food Secretary, IGL raises Delhi Piped Gas Prices, NMDC, Marico, MGL announced impressive Q1 results while SBI announced lower than expected Q1 results.

 

·       HDFC Bank, India's most valuable lender, is said to have raised up to $300 million in NRE deposits, offering up to 50 basis points more than the prevailing rates, people familiar with the matter told ET – positive

 

·       Tata Motors agreed to acquire Ford Motor Co.’s plant in the western Indian state of Gujarat to bolster its manufacturing capacity. The Indian automaker will pay Rs726cr for the transaction, – Long term positive

 

·       DLF is evaluating a bid for a prominent New Delhi shopping mall which has a starting auction price of $366 million, according to two sources and a public notice seen by Reuters. The 1.2 million square feet "Ambience Mall" in the posh southern district of India's capital has been put up for auction as its current owner, the Ambience Group, has not paid debt of $149 million to Indiabulls Housing Finance and other creditors, according to a previously unreported public auction notice.

 

·       Reserve Bank of India hiked repo rate by 50 basis points to 5.40%. The central bank still expects the economy to grow 7.2% in the fiscal year that began in April and retained its annual inflation forecast at 6.7%, Mr. Das said adding that there is significant uncertainty over the price outlook. – RBI hiked interest rate by 50bps which was inline with expectation. Expects, inflation will cool down due to oil price fell to 6-month low. – Buying opportunity interest sensitive stocks like  – Banks (ICICI Bank, SBI, HDFC Bank), Auto (M&M, Maruti, Tata Motor) 

 

·       IGL raised the price of piped natural gas by 5.5% in Delhi piped natural gas. Price raised from Aug. 5 by Rs2.63/cubic meter to Rs50.59 in the capital to help offset higher input gas cost – positive

 

·       Ahluwalia Contracts wins construction order worth Rs202cr – positive

·       Mangalam Cement - India Ratings and Research (Ind-Ra) has affirmed Mangalam Cement Limited’s (MCL) commercial paper (CP) rating worth Rs750 crore at 'IND A1+'. – Avoid

 

·       Havells India its innovative Crabtree Signia switches in Kochi today. The range is categorized into mart and luxury switches (Signia Smart and Signia Grande), both of which feature high-end aesthetics and technology designed in-house at Havells' R&D centre.- Positive

 

·       Power Grid Corp will seek shareholders' approval on August 29, to raise up to Rs 6,000 crore through the issuance of bonds during the financial year 2023-24.- Positive

 

·       Adani Port - AD Ports Group and Adani Ports have signed a for joint strategic investments in end-to-end logistics infrastructure and solutions in Tanzania, including rail, digital services, port operations, maritime services, an industrial zone, and the establishment of maritime academies.. – positive

 

·       Government may reduce or eliminate the export duty on steel products - Mint reports. The government levied 15% export duty on steel products and reduced import duty on some raw materials of steel, on May 22.- However, media reported that the government deny to reduce export duty on steel – We are positive on Hindalco, JSW Steel, Nalco and Jindal Steel due to fall in US Dollar Index and increased base metal price on LME.   

 

·       NTPC declares Commercial Operation of 5hh part capacity of 48.8 MW out of 296 MW Fatehgarh Solar PV Project. With this, standalone installed and commercial capacity of NTPC has become 54818 MW, while group installed and commercial capacity of NTPC has become 69183 MW. – positive

 

·       Cipla (EU) Limited, ("Cipla EU"), wholly owned subsidiary of the Company in UK, has agreed to acquire an additional 19.16% stake in Cipla Maroc SA, joint venture and subsidiary of Cipla EU in Morocco.- positive

 

·       Varroc Engineering aims to complete the proposed sale of its car-lighting unit to Cie Plastic Omnium SA by the end of September. European Commission said Aug. 2 it had approved the deal. The transaction is still pending antitrust approval in Mexico. In April, Plastic Omnium Agrees to Buy Varroc’s Automotive Lighting Arm – positive to exit its non-core business.

 

·       EaseMyTrip Thai, a wholly-owned subsidiary of EaseMyTrip launched in 2021 in Thailand signs an exclusive General Sales Agreement with SpiceJet Airline to sell, promote and market passenger tickets and other services to passengers in Thailand effective 1st September, 2022 - positive

 

·       Titan Jewellery sales grew 173.8% YoY to Rs8350cr. Segment margins were up 610bp YoY to 12.6% and watches sales grew 168.3% YoY to Rs790cr with EBIT margin at 12.5% in 1QFY23.- Long term positive

 

·       Focus on Sugar stocks - India, the world’s second-biggest sugar producer, will permit millers to export an additional 1.2 million tons in the year ending Sept. 30, Food Secretary Sudhanshu Pandey said on Friday.  Sugar shipments from the country are expected to reach 11.2m tons in 2021-22 – Positive for sugar stocks like Balrampur Chini, Renuka Sugar, Oudh Sugar

 

·       HDFC Ltd. announces the completion of the USD 1.1 billion Syndicated Social Loan Facility for the financing of affordable housing in India. The loan has been priced competitively at a margin of 90 bps over SOFR (Secured Overnight Financing Rate).- positive

 

·       Andhra Paper has deployed an ABB advanced process control (APC) solution at their Rajahmundry mill's lime kiln. To help reduce the energy requirements of the highly interactive lime kiln production process, ABB India has integrated their OPT800 Lime APC solution into APL's existing ABB Ability™ System 800xA distributed control system (DCS).- positive

 

·       Auobindo Pharma gets EIR for Hyderabad facility - Aurobindo Pharma announce that it has received the Establishment Inspection Report (EIR) from the US FDA stating their acceptance on Aurobindo's sterile injectable formulation facility in Chitkul Village, near Hyderabad – We are positive on the stock.

 

·       Titan reported in line with expected Q1 results. Company reported Q1 Income Rs9440cr (up 172% YoY) – expectation Rs10420cr, Ebitda Rs1200cr (up 757% YoY) - Expectation Rs1400cr, Ebitda margin at 12.7% vs 3.9% (YoY) – expectation 13.5% and net profit Rs790cr vs Rs20cr (YoY) – expectation Rs970cr

 

·       ABFRL announced better than expected Q1 results. Company reported Q1 Net profit Rs97.5cr vs loss 352cr -  expectation Rs32cr, Ebitda Rs468.5cr vs Rs168.5cr -  Expectation Rs392cr, Ebitda margin at 16.3% - expectation 14.3% and Income  Rs2875cr (up 254% YoY) – expectation Rs2744cr

 

·       Alkem Labs  announced poor Q1 results.  Revenue down 6% (YoY) at Rs 2,576 crore – expectation Rs2582cr, Net profit down 73% (YoY) to Rs 128 crore – expectation Rs294.3cr, EBITDA down 66% (YoY) to Rs 203 crore – expectation Rs400cr, Ebitda Margins at 7.9% vs 21.7%  (YoY)- expectation 15.5%

 

·       Eris Lifesciences announced better than expected  Q1 Ebitda and Ebitda margin. Revenue up 14% at Rs 399 crore – Expectation Rs373.7cr,  Net profit down 11% to Rs 95 crore – expectation Rs87.8cr, EBITDA up 2% to Rs 129 crore – Expectation Rs114cr and Ebitda margin at 32.4% Vs 36.2%  (YoY)- expectation 30.5%

 

·       M&M announced inline with expected Q1 results. Company reported Q1 Net profit Rs1430cr (up 53% YoY) – Expectation Rs1390cr , Ebitda 2341cr (up 43.5% YoY) – expectation Rs2371cr, Ebitda margin at 11.90% vs 13.9% - expectation 12%  and Income 19613cr (up 67% YoY) – expectation 19670cr

 

·       NMDC Q1 Net profit Rs1469.4cr (down 54% YoY) – Expectation Rs1390cr , Ebitda 1893.1cr (down 55% YoY) – expectation Rs1620cr, Ebitda margin at 39.80% vs 65%  (YoY)- expectation 35%  and Income 4767.1cr (up 67% YoY) – expectation 4640cr

 

·       UCO Bank announced poor Q1 results. Poor asset quality is a concern. Company reported Q1 net profit Rs124cr (up 22% YoY), GNPA 7.42% vs 7.89% (QoQ), Provision Rs247cr (down 47% QoQ) and Interest income Rs3850cr (up 7.8% YoY) 

 

·       Akzo Nobel announced inline with street estimated Q1 results. Company reported Q1 net profit Rs77cr (up 1.3% YoY),  Ebitda margin 13% vs 14% (YoY), Ebitda Rs121.1cr (up 24% YoY) and Income

 

·       Graphite India reported poor Q1 results. Company reported Q1 net profit Rs24cr (down 843% YoY),  Ebitda margin 3.2% vs 23% (YoY), Ebitda Rs28cr (down 80.1% YoY) and Income Rs866cr (up 42% YoY)

 

·       Green Ply announced impressive Q1 results. Company reported Q1 net profit Rs20.7cr (up 417% YoY) Ebitda Rs40cr (up 203% YoY), Ebitda margin at 8.8% vs 5% (YoY) and Income Re Rs260.7cr (up 74% YoY).

 

·       Marico announced better than expected Q1 Ebitda and Ebitda margin. Net sales remained flat YoY Rs2560cr (up 1.3% YoY) – Expectation Rs2575cr, EBITDA grew 9.8% YoY to Rs530cr (estimates Rs490cr), PBT grew 6.9% YoY to Rs500cr (estimates Rs470cr). PAT grew 4.2% YoY to Rs370cr (estimates Rs350crb). Ebitda margin at 20.6% vs 19% - expectation 19.2%.

 

·       Mahanagar Gas announced inline with expected Q1 results - Revenue Rs1450cr (up 136% YoY) – expectation Rs1455cr, EBITDA Rs280cr (down 6% YoY) – expectation Rs289cr, Net profit Rs180cr ( down 9% YoY) – expectation Rs187cr, Volumes were strong at 3.45mmscmd(+9% vs est; +44% YoY). CNG volumes were at an all-time high of 2.5mmscmd(+64% YoY) and  EBITDA marginat 19.6% vs 30.6% (YoY) – expectation 21.6%.

 

·       Vinati Organics Announced lower than expected Q1 Ebitda and Ebitda Margin –Revenue stood at Rs506cr (up 31% YoY) – Expectation Rs540.2cr, EBITDA  Rs130cr ( up 29% YoY) – expectation Rs150.3cr, PAT  Rs100cr (up 25% YoY) – expectation Rs114cr, EBITDA Margin stood at 25.8% vs 28.6% in Q4FY22 (QoQ) – expectation 27.8%, EBITDA/ PAT Miss is mainly driven by high raw material cost due to high crude prices.

 

·       SBIN announced lower than expected Q1 results - Net Profit Rs6070cr (down 7% YoY) – expectation Rs7600cr, NII Rs31200cr (up 13% YoY) – expectation Rs32550cr, Provision Rs4390cr (down 56% YoY) – expectation Rs7350cr, Operating profit Rs12750cr (down 33% YoY) – expectation Rs17620cr, GNPA 3.9% vs 4% (QoQ) – expectation 3.8%, NPA 1% vs 1% (QoQ) – expectation 1% and Loan book grew 16% YoY / 3% QoQ while deposits grew 9% YoY (flattish QoQ). CASA ratio stood stable at 45.3%.

 

·       Pfizer Q1 Revenue down 21% at Rs 593 crore, Net profit down 84% at Rs 32.5 crore.  There were two one-time expenditures during the quarter: Rs 129.85 crore on account of Voluntary Retirement Scheme. Additional charge of Rs 6.48 crore (net) on account of restructuring to drive business transformation – avoid

 

·       BPCL announced in line with expected Ebitda – Company reported Revenue stood  Rs12100cr (up 71% YoY.) – expectation Rs13160cr, Reported EBITDA loss Rs4940cr vs profit Rs4450cr – expectation Rs4700cr, net loss Rs6290cr vs profit Rs2130cr – expectation Rs5300cr, Refining segment- reported GRM’s of USD27.5/ bb( up 23% YoY) – Expectation $22.3/bbl . Marketing segment- reported marketing sales volume of 11.8mmt(+5% vs est; +22% YoY)

 

·       Nykaa - Revenue up 9% at Rs 1,679.6 crore Vs Rs 1,540.9 crore (Bloomberg estimate: Rs 1,701.4 crore), EBITDA loss fell 13% at Rs 633.90 crore Vs Rs 729 crore (Bloomberg estimate: Rs 676.8 crore loss) EBITDA margin -38% Vs -47% (Bloomberg estimate: -40%), Net loss fell 15% at Rs 644.4 crore Vs Rs 761.4 crore (Bloomberg estimate: Rs 789.4 crore loss).

 

·       Fortis Healthcare Q1 FY23 (Consolidated, YoY) - Revenue up 5% at Rs 1,487.85 crore Vs Rs 1,410.31 crore, EBITDA fell 9% at Rs 251.10 crore Vs Rs 275.25 crore, EBITDA margin 17% Vs 20% Net profit fell 54% at Rs 122.25 crore Vs Rs 263.55 crore

 

·       Raymond Q1 FY23 (Consolidated, QoQ) Revenue fell 16% at Rs 1,193.1 crore Vs Rs 1,426.15 crore, EBITDA fell 31% at Rs 162.05 crore Vs Rs 234.4 crore, EBITDA margin 14% Vs 16%, Net profit of Rs 61.81 crore Vs net loss Rs 432.41 crore