Market Highlights: Sensex closes 398 pts higher, Nifty breaches 11,000 mark; Infosys, HDFC Bank push markets higher

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Updated: July 20, 2020 4:31:47 pm

Share Market News Today | Sensex, Nifty, Share Prices Highlights: Sensex and Nifty managed to extend their gains on the first trading session of this week, with IT major Infosys and private lender HDFC Bank as the top index contributors.

Share Market Today, Share Market LiveAt the end of last week’s trading, volatility tanked over 4 points while most sectoral indices gained over a per cent each.

Share Market News Today | Sensex, Nifty, Share Prices Highlights: Domestic equity benchmark indices, Sensex and Nifty surged on Monday and closed at levels last seen at the beginning of March. S&P BSE Sensex ended gaining 398 points or 1.08% to close at 37,419 points, while the NSE Nifty 50 ended above the 11,000 mark. Bajaj Finance and Bajaj Finserve were the top gains on Sensex, up over 4% each. These were followed by HCL Technologies, Tech Mahindra, Infosys, and HDFC BankSun Pharma was the worst-performing stock among Sensex constituents, followed by NTPC, Maruti, and Kotak Mahindra Bank. Among sectoral indices, all except Nifty Pharma ended in the green. Nifty Financial Services, Nifty Bank, and Nifty Private Bank were the top gainers.

In times when the banking sector is expecting headwinds, India’s largest private sector lender HDFC Bank has reported a 19.6% surge in net profit, on-year basis. At the end of the June quarter, HDFC Bank reported a net profit of Rs 6,659 crore while its net interest income surged to Rs 15, 665 crore. The bank continued to remain cautious and increased provisions and contingencies to Rs 3,891 crore.  Total advances grew 21% on-year to Rs 10.03 lakh crore at the end of June, while total deposits were at Rs 11.89 lakh crore, an increase of 24.6% from the previous year.

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Highlights

    16:31 (IST)20 Jul 2020
    Sensex, Nifty gain for the third consecutive trading session; here's what fueled D-Street today

    Domestic benchmark indices continued to gain for the third-straight trading session today, extending their gains to levels last seen before the coronavirus became a pandemic. S&P BSE Sensex was up 398 points or 1.08% while the 50-stock Nifty ended above 11,000 mark. “The Indian benchmark indices exhibited volatility, tracking earnings results, and the SC AGR hearing. Nifty continued its momentum and closed above the 11000 mark. This was in spite of increasing virus infections, both in India and abroad,” said Vinod Nair, Head of Research, Geojit Financial Services.

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    15:37 (IST)20 Jul 2020
    Sensex closes 400 points higher Nifty comfortably over 11,000 mark

    Domestic benchmark indices Sensex and Nifty managed to extend their gains on Monday and closed higher. S&P BSE Sensex closed with gains of 398 points while the 50-stock NSE Nifty closed at 11,022 levels.

    15:13 (IST)20 Jul 2020
    Retail investors' flight to safety on Dalal Street: Rush to buy these stocks in search for safe havens

    In what can be seen as a shift to safer havens, retail investors have been driving their investments towards bigger and better-placed companies that are more capable of tiding over the pandemic. Equity analysts had warned in March that investors need to invest in companies that have stronger balance sheets, enabling them to withstand the headwinds that the pandemic brought along. According to the shareholding pattern available on the stock exchanges, companies like Hindustan Unilever (HUL), State Bank of India (SBI), Tita, and ICICI Bank have seen a decent surge in retail investors.

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    15:03 (IST)20 Jul 2020
    Manufacturing dips to one-third of pre-COVID in Q1; firms still optimistic of reducing imports: FICCI

    With coronavirus lockdown in place, manufacturing activities have nosedived in the country to nearly one-third of the pre-COVID level. However, manufacturing companies are still looking to reduce imports in certain sectors after Prime Minister Narendra Modi’s call for Make in India. “Latest quarterly survey on manufacturing reveals a dismal status for Q1 (April-June 2020-21) as compared to the previous few quarters of 2019,” a FICCI report said on Monday.

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    14:54 (IST)20 Jul 2020
    Brokerage view on Petronet LNG

    PLNG's three concerns - (a) competition, (b) usage of cash, and (c) long-term growth - have been well-answered by management (as highlighted above). Also, the National Green Tribunal (NGT)'s actions against severely/critically polluted industrial clusters could provide a huge boost to gas consumption in the country: Motilal Oswal Institutional Equities

    14:47 (IST)20 Jul 2020
    Middle class agony continues; mid-income households lose more than rich and poor in lockdown

    The loss of incomes during the lockdown was felt across the household income spectrum, however, the worst-hit were the middle-class and the upper middle-class people. Middle-income households, particularly at the upper levels within this bracket, suffered much more because they had a lot more to lose, said the Centre for Monitoring Indian Economy (CMIE). They lost their income in excess of 30 percentage points.

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    14:29 (IST)20 Jul 2020
    With a continuing lockdown, it looks a difficult road ahead for Aditya Birla Fashion and Retail

    Aditya Birla Fashion & Retail had a torrid FY20 where profits were negative and debt has also increased significantly. With a continuing lockdown which could potentially wipe out H1FY20 profits, it looks a difficult road ahead for this company. Existing investors who had already invested in this stock at higher levels could opt for the rights issue at Rs.110 but should also look to exit with some profits near 145-160 levels. However for these levels to be achieved, a strong revival in the economy & sentiment should take place in the coming quarters which looks unlikely: Abhijeet Ramachandran, Independent Analyst/ Co-Founder and trainer at Tips2trade

    14:27 (IST)20 Jul 2020
    Contra traders can bet on the nifty put option

    In the current week, uptrend wave likely to continue up to 11050 and further uptrend May also continue which could lift the index up to 11200. However, Market support has risen from 10,400 to 10,500. Our advice is to reduce weak long positions around 11050/11060 levels or take partial profits on long positions. Bank Nifty also returned from 21000 levels. It could hit the 22550 or 22900 level next week. Contra traders can bet on the nifty put option, if the index trade below 10950 with strict 11050 resistance stop loss: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities 

    14:24 (IST)20 Jul 2020
    Aditya Birla Fashion and Retail rights issue closes on July 22; should you subscribe?

    Aditya Birla Fashion and Retail (ABFRL) rights issue, which opened for subscription on July 8, will close on July 22. The firm has planned to raise Rs 995 crore via its rights issue of 9.05 crore partly paid-up equity shares with a face value of Rs 10 each. According to the company’s letter of offer, the dealings in the right entitlement for renunciation were permitted on the exchange from July 8 to July 17, 2020.

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    13:00 (IST)20 Jul 2020
    Growing interest in investing by millennials and how online discount brokers cater to their needs

    As I always say, I find millennials to be a smart breed of investors. In fact, a recent study has indicated that around 9 of every 10 of them are looking at sustainable investing options. Given the current circumstances where the overall economy is suffering, more and more millennials are looking for alternative sources of income and/or investments to ensure a degree of financial security. With stock markets being functional even during the global pandemic that stalled the entire world for a while, despite the turmoil it has still managed to grab the attention of the millennials. In fact, the lockdowns have witnessed the record growth of investors in the Indian stock market.    

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    12:50 (IST)20 Jul 2020
    Insurance sector improving across segment?

    General insurers reported 8% yoy growth in premiums (excluding crop) in June 2020 led by 47% yoy growth in fire, robust 9% yoy growth in health and revival in motor premium to 1% yoy from 23-49% yoy decline over the past two months. Retail health was up 42% yoy; standalone health insurers reported 61% yoy growth. Among key players, SBI reported strong growth across most segments while ICICI revived partially led by motor and health. Bajaj was weak across segments.~ Kotak Securities

    12:33 (IST)20 Jul 2020
    GRANULES INDIA: A quarter of record-high revenue/EBITDA/PAT ~ Motilal Oswal

    We expect earnings CAGR of 23% over FY20-22E, led by 17%/20% sales CAGR in FDs/PFI revenue and 310bp EBITDA margin expansion (with an increased share of better-margin products and backward integration).GRAN has multiple growth levers such as (a) ANDA pipeline for US generics should drive increased share of formulation for developed markets, (b) enhanced reach for core molecules, and (c) reducing opex through backward integration. Accordingly, we ascribe 25% premium to its 5-year average of 11x P/E to factor in product/geographic diversification and backward integration. We value GRAN at 14x 12M forward earnings to arrive at a TP of INR315/share. Maintain Buy.

    12:07 (IST)20 Jul 2020
    Brokerage view on L&T Infotech

    We believe LTI should continue to warrant premium valuation vis-à-vis peers on the back of its consistent industry-leading growth backed by execution focused stable management, diversified client base, robust new logo addition and client mining efforts. We initiate coverage on LTI with BUY and a 2-Year Target Price of R2,550 (based on a PE of 20.5x of FY23 earnings): Reliance Securities

    11:56 (IST)20 Jul 2020
    Any negative news or RBI intervention will remain selling opportunity for the near term

    Given by the current cautions mode across the market and if RBI continues to hold the rupee near 75.00 or 74.50 levels, it is likely that it may take few attempts to break the same and make a move on the stronger side. However, a bounce-back towards 75.40-75.50 levels given by any negative news or RBI intervention will remain selling opportunity for the near term. Broadly, the range of 74.50-75.50 is likely to remain intact for a few more sessions: Amit Pabari, managing director, CR Forex Advisors

    11:52 (IST)20 Jul 2020
    Vodafone Idea share price zooms 10% on Rs 1,000 crore AGR dues payment ahead of SC hearing

    Vodafone Idea share price zoomed nearly 10 per cent to Rs 9.69 apiece on BSE today after the telecom company paid Rs 1,000 crore towards the pending AGR dues. Despite a 10% gain in the stock price, Vodafone Idea stock price is still 23 per cent off from its 52-week high level. Vodafone Idea stock price hit a 52-week high of Rs 12.62 apiece last month. The Supreme Court is expected to hear the Adjusted Gross Revenue (AGR) case later today.

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    11:45 (IST)20 Jul 2020
    Indian equities could underperform their Asian peers in the next few months

    "Given the significant rally already, our Investment Committee believes the global equity market may remain on the sidelines over the next few months as profit booking may set in. Within equities, the committee believes Indian equities could underperform their Asian peers in the next few months given the lack of a demand stimulus. Hence, we continue to recommend quality companies having strong balance sheets and companies with a respectable management track record," said Jitendra Gohil and Premal Kamdar of Credit Suisse.

    11:20 (IST)20 Jul 2020
    Hit by coronavirus, earnings estimates are being downgraded; here’s how this could be good

    After overestimating Nifty’s one-year forward earnings per share by 20% on average for the over half a decade, the coronavirus pandemic has presented equity market analysts with an opportunity to set the record straight and get their estimates back on track. The coronavirus pandemic has resulted in a downgrade of close to 30% for Nifty 50 earning for this fiscal which implies a 10% downgrade on net basis assuming that the 20% over-estimation error has persisted, said a report by brokerage and research firm ICICI Securities. Analysts at ICICI Securities said that such a downgrade could result in reduction in estimation error in Nifty 50 EPS going ahead.

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    10:47 (IST)20 Jul 2020
    Britannia Industries: Driven by tailwinds ~ ICICI Securities

    1Q revenue grew 27% – strong 22% volume growth and 5% realisation growth (equally driven by mix and price hike). Tailwinds of accelerated category growth (consumers staying at home) and (likely) market share gains for Britannia (strong brand positioning, direct distribution expansion, execution edge) are likely to continue in rest of FY21. Upstocking of a lean supply chain (channel inventory has reduced to ~3 days from 11 days pre-COVID) may support growth, if underlying demand moderates. That said, we highlight the risk of a potential volume decline in FY22 assuming normalcy returning and consumers spending less time at home. Lower input inflation, cost controls and operating leverage likely to drive earnings growth in FY21. ICDs to group companies were flat QoQ (was Rs6.3bn as of Mar’20). REDUCE retained – rating all about fundamentals vs. rest.~ ICICI Securities

    10:24 (IST)20 Jul 2020
    HDFC Bank stock top Sensex gainer today, rallies 56% since March; all eyes on CEO succession

    HDFC Bank share price surged 4.86 per cent to touch day’s high of Rs 1,152,65 apiece on Monday after the private bank posted a 19.6 per cent growth in net profit to Rs 6,658.62 crore in April-June quarter of the current financial year. The bank had reported a net profit of Rs 5,568.16 crore in the corresponding quarter of the preceding financial year. With today’s surge in the stock price, the total market capitalisation of HDFC Bank stands at Rs 6,26,111.37 crore.

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    10:13 (IST)20 Jul 2020
    Sensex, Nifty extend opening gains; here's what is moving share markets higher today

    Domestic benchmark indices, Sensex and Nifty gained on the opening bell on Monday morning defying global cues. S&P BSE Sensex was up 275 on opening while Nifty was just shy of the 11,000 mark on opening. However, in the initial hour of trading, share markers added to their opening gains and Nifty crossed the 11,000 mark. “The markets have opened with a bang and have achieved its target of 11,000! We should be headed higher to 11,150 as the next target on the Nifty. 10600 is good support for the index,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

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    09:58 (IST)20 Jul 2020
    Rupee is likely to open around 74.95 and trade 74.75-75.15 with downside bias

    Not much on the data front this week. RBI's FX Reserves rose by another USD 3.1bn to a record USD 516.3bn. We may continue to see the Rupee trade in the 74.50-75.50 range if the US Dollar remains stable globally. We could see 74.50 get tested again. We expect the resolve of the RBI on the following fronts to continue (a)  building up Reserves, (b) preventing the Rupee from strengthening too much in relative terms (c)Containing volatility. Among Asian currencies, Indonesian Rupiah continues to weaken. Rupee is likely to open around 74.95 and trade 74.75-75.15 with downside bias. Equities are likely to trade with a positive bias: Abhishek Goenka, Founder and CEO, IFA Global

    09:33 (IST)20 Jul 2020
    Gold sentiment flat to positive as investment demand rising steadily

    MCX gold on Monday morning has fallen slightly in the absence of any fresh triggers in the market. Focus is on the US-China trade relations and rising COVID counts. Comex gold held strong well above the psychological level of $1,800 on Monday, as a weaker dollar and concerns over surging COVID-19 cases around the globe kept the safe-haven metal underpinned. COMEX gold is trading in a tight range from $1790-$1820. The sentiment is flat to positive in the yellow metal since investment demand has been steadily rising: Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Shares and Stock Brokers

    09:21 (IST)20 Jul 2020
    Sensex, Nifty jump on opening, defy global cues

    Domestic benchmark indices surged on the opening bell on Monday defying weak global cues. Sensex jumped 275 points while Nifty gained to sit just below the 11,000 mark. Volatility was, however, up 3%.

    09:03 (IST)20 Jul 2020
    Sensex gains 293 points in pre-opining session

    S&P BSE Sensex was up 293 points in the pre-opening session with private sector lender HDFC Bank gaining the most.

    08:57 (IST)20 Jul 2020
    Stocks in focus: HDFC Bank, HUL, Vodafone Idea, Yes Bank, SBI Cards, Cadila Healthcare

    ACC, Den Networks, and SBI Cards and Payment Services, Bombay Dyeing, CSL Finance, Indo Amines, Maharashtra Scooters are among companies that are scheduled to announce their quarter earnings today.

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    08:57 (IST)20 Jul 2020
    Stocks in focus: HDFC Bank, HUL, Vodafone Idea, Yes Bank, SBI Cards, Cadila Healthcare

    ACC, Den Networks, and SBI Cards and Payment Services, Bombay Dyeing, CSL Finance, Indo Amines, Maharashtra Scooters are among companies that are scheduled to announce their quarter earnings today.

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    08:38 (IST)20 Jul 2020
    Centre’s hard stance has put Chinese handset makers like Xiaomi, Oppo, Vivo in dilemma

    The border stand-off with China and the government’s hard stance towards Chinese companies operating in the domestic space, has put Chinese handset makers like Xiaomi, Oppo, Vivo, Realme, etc, in a quandary with regard to applying for the Rs 41,000-crore production-linked incentive scheme. 

    08:32 (IST)20 Jul 2020
    Results today

    Cement manufacturer ACC will announce its April-June quarter results today. SBI Cards and Payment Services will also be reporting its numbers today. Bombay Dyeing and Manufacturing, Den Networks, STC India, and MSP Steel and Power Limited are some of the other companies coming out with the numbers for the June quarter today.

    08:26 (IST)20 Jul 2020
    BAT signal: New tax likely on certain imports to provide domestic players a level-playing field

    Amid a policy push for Atmanirbhar Bharat, the government has revived a proposal to levy the so-called border adjustment tax (BAT) on certain imported goods – including steel and certain related products – to provide domestic manufacturers, who are subject to various embeded taxes, a level-playing field against overseas suppliers.

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    08:25 (IST)20 Jul 2020
    Resilient, confident show despite challenges ~ ICICI Securities on HDFC Bank

    HDFC Bank’s Q1FY21 performance was commendable and the management’s narrative was resilient, despite challenges reflected in: 1) Morat 2.0 portfolio at 9% (lowest heard till now), 2) confidence in credit reserves of ~55bps coupled with 76% NPL coverage being sufficient ceteris paribus, 3) digital initiatives, franchise strength and sharp focus helping capture opportunities without compromising quality. Market share gain (21% advance growth), steady NIMs at 4.3% (despite 70bps MCLR cut) and operating cost agility (down 24% YoY ex-employee cost) aided 7% core operating profit growth in the most disrupted quarter. Accelerated recognition of 30bps of advances and expedited provisioning (coverage up 4%) initiated on non-morat pool – though contingency buffer was limited at mere 10bps. Earnings growth of 20% was buoyed by treasury gains of Rs10.9bn. Performance reaffirms our stance that HDFC Bank will lead responsibly and is best positioned to rebound quicker offsetting near- term weakness. Maintain BUY.

    08:20 (IST)20 Jul 2020
    FPIs remain net sellers in Indian markets in July; pull out Rs 9,015 crore

    Foreign portfolio investors (FPI) remained net sellers in Indian markets in July so far as they pulled out Rs 9,015 crore from equities and debt securities with the surging markets providing profit booking opportunity amid concerns over rising cases of COVID-19. According to depositories data, FPIs withdrew Rs 6,058 crore from equities and Rs 2,957 crore from the debt segment on a net basis during July 1-17. The net outflow from Indian markets stood at Rs 9,015 crore during the period under review.

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    08:19 (IST)20 Jul 2020
    Sensex, Nifty look to open with losses on Monday; key factors to set tone for equity markets today

    Domestic equity market benchmarks BSE Sensex and Nifty 50 are expected to open weak following their Asian peers. On Friday Sensex soared 548 points or 1.50 points to end at 37,020, while the broader Nifty 50 index settled just above 10,900, gaining 162 points or 1.51 per cent. Headline indices, Sensex and Nifty ended the week with a gain of 1.16 per cent and 1.24 per cent, respectively.

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