Sensex Today: Sensex, Nifty end marginally lower; Tata Motors top loser ahead of results

Market Update

Sensex Today: Domestic equity benchmarks BSE Sensex and NSE Nifty pre opened higher on Thursday on an important result day of the earnings season. Although index Nifty has turned red and trades down by 57 points. Market is likely to bounce-back marginally after a fall of five consecutive days. Yesterday, BSE Sensex closed at 37,847 by declining 135 points and NSE Nifty ended 59 points lower to 11,227.

Result on July 25

Tata Motors, Bajaj Finance, Bank of Baroda, Ambuja Cements, Biocon, Bajaj Finserv, IFB Industries, Ador Welding, Taj GVK Hotels, Grindwell Norton, Rane Brake Lining, Shreyans Industries, RS Software (India), Banaras Beads, Bharat Bijlee, Eimco Elecon, Tata Steel BSL, Som Distilleries & Breweries, Mold-Tek Technologies, Apcotex Industries, Greenlam Industries, Thirumalai Chemicals, Tata Coffee, Genus Power Infrastructures, Gruh Finance, Mafatlal Finance, Jubilant Industries, Foseco India, Persistent Systems, Mold-Tek Packaging, PVR, MphasiS, AU Small Finance Bank, Onward Technologies, Central Depository Services (India), South Indian Bank

Market opens higher

BSE Sensex opens at 37,935.02 by advancing 87 points higher and NSE Nifty started 63 points higher to 11,290.40.

FII/DII

The net investment of equity and debt reported by Foreign portfolio investment (FPIs) remained bearish with net selling Rs 1,393.71 crore from Indian equities while Domestic institutional investors (DIIs) bought Rs 2,140.26 crore Wednesday.  

Indian Rupee opens lower

Indian Rupee opened lower at 68.98 versus yesterday's close of 68.97 per dollar.

Infratel rises over 5% post result

Bharti Infratel, the wholly-owned telecom tower subsidiary of Bharti AIrtel, on Wednesday reported a 39 per cent growth in consolidated net profit at Rs 887 crore for the quarter ended June 30, 2019, helped by network expansion by mobile service providers. "The tower infrastructure company had posted consolidated net profit of Rs 638 crore in the same quarter last year," Bharti Infratel said in a filing to the Bombay Stock Exchange. The consolidated revenue, however, rose merely by 1 per cent to Rs 3,712 crore during Q1FY20, as against Rs 3,674 crore in Q1FY19. Stock price of Bharti Infratel opened with a gain of 2.20% and risen 5.72% to touch an intraday high of Rs 279.20. Infratel stock has been gained 5.73% in the last 2 days period

Canara Bank drops over 2% post result

State-owned Canara Bank has reported 17.08 per cent year-on-year rise in its standalone net profit at Rs 329.07 for the quarter ended June 30, 2019, helped by lower provisions and improvement in asset quality. Canara Bank's net interest income (NII), or the core income a bank earns by giving loans, declined by 16.53 per cent to Rs 3,240.61 crore in April-June quarter of FY20 as against Rs 3,882.9 crore in the same quarter last fiscal. The provisions and contingencies of Canara Bank fell by 26 per cent to Rs 1,899.1 crore as compared to Rs 2,582.30 crore made in the year-ago quarter. The bank's provisions in the March quarter stood at Rs 5,523.50 crore. Yesterday, post result, shares of Canara Bank closed trade at Rs 248.65 on the BSE, down 2.97 per cent as compared to the previous close. Canara Bank stock today has fallen 2.39 per cent to touch intraday low of Rs 242.70. The stock overall has fallen 12.78% in the last 6 days.  

Jubilant FoodWorks trades in wide range post results

Shares of Jubilant FoodWorks trade choppy and in a wide range today after posting results yesterday. The stock has fallen 2.08 per cent to day's high of Rs 1,180 and intraday low of Rs 1,108.50, at a fall of 4.10%. Jubilant FoodWorks, which operates Domino's Pizza in India, has reported a marginal decline of 0.79 per cent in its consolidated net profit at Rs 71.64 crore for the first quarter ended June 30, 2019, impacted by increase in advertising and promotional expenditure and continued investments in technology. The company's revenue rose by 10 per cent to Rs 949.1 crore in Q1FY20 against Rs 863.2 crore in Q1FY19. Yesterday, amidst reacting to Q1 numbers, shares of Jubilant FoodWorks fell 5.92 per cent to close at Rs 1,155.95 apiece on the BSE on Wednesday.

Asian Paints falls marginally after results

Stock of Asian paints in today's trade has registered 1.67% fall to the day's low of Rs 1459.10 against the last close of Rs 1483.60 on BSE.  The stock has fallen after 3 days of consecutive gain, although, trades 3.18% away from 52 week high of Rs 1,529.95.

Asian Paints, India's leading paint company, on Wednesday reported 17.7 per cent year-on-year growth in consolidated net profit after minority interest at Rs 655 crore for the first quarter ended June 30, 2019, helped by the double digit volume growth in decorative business segment in India.

Revenue from operations rose 16.6 per cent to Rs 5,130.63 crore in Q1FY20 as compared to Rs 4,398.59 crore in Q1FY19.

Profit before depreciation, interest, tax and other income (PBDIT) jumped 24.4 per cent to Rs 1,156.25 crore from Rs 929.70 crore a year ago, the company said.

Asian Paints' profit before tax (PBT) increased by 20.9 per cent to Rs 1,022.62 crore from Rs 846.12 crore in the year ago period.

On the standalone basis, the net profit grew 20.5 per cent YoY to Rs 652.45 crore, while total revenue from operations increased 18.2 per cent to Rs 4,380.16 crore during the April-June quarter.

 

Oil price rises

Brent crude futures, the global oil benchmark, rose 0.19 per cent to trade at USD 63.30 per barrel.  

RBI set to cut interest rates in August: Economist Poll

The Reserve Bank of India is set to cut interest rates in August for the fourth meeting in a row,as per economists,a majority of whom said risks to their already-modest growth forecasts were skewed more to the downside. If the RBI does cut rates next month at the August meeting, it will be the most aggressive amongst dovish central banks in Asia. The last time the RBI delivered so many back-to-back cuts was after the global financial crisis over a decade ago, when most major central banks went on a cutting spree to revive economic growth. India’s inflation has remained below the central bank’s medium-term target of 4% for almost a year and is not expected to rise significantly above that until at least 2021.

DCC penalises Vodafone and Bharti Infratel

The Digital Communications Commission (DCC) upheld the penalty against Vodafone Idea and Airtel. The Telecom Regulatory Authority of India (TRAI) had recommended a cumulative fine of Rs 3,050 crore against the two telecom operators for not providing points of interconnection to Reliance Jio.

Tata Motors trades lower ahead of earnings report

Tata Motors share price is trading 2% lower in morning trade ahead of company results. The tock price has fallen 3.17% to touch an intraday low of Rs 146.45. The share price of Tata Motors currently trades 4.92% away from 52 low of Rs 141.90.

Maruti hits 52-week low

Maruti Suzuki stock price fell to its 52-week low of Rs 5,701 on Thursday, despite the vehicle manufacturer denying the news report captioning "Suzuki Gujrat plant to drive fewer cars" on a reply to clarification notice by the exchanges. The regulatory filing submitted in today's trading session quoted, "We would like to clarify that it's a media news and the Company has not made any official announcement on this matter. " The stock price of Maruti Suzuki opened 0.50% higher at Rs 5795 against the closing price of Rs 5766.60 recorded yesterday, however, erased early gains to fall 65 points lower or 1.1% to its 52-week low of Rs 5,701 on both BSE and NSE, respectively.

Bajaj Finance falls over 3% intraday post result

The stock price of Bajaj Finance has fallen to 3.14% to day's low at Rs 3,072 on BSE, after the company posted Q1 net profit Rs 1,195 crore as compared to Rs 836 crore recorded in the correponding quarter last year. On a consoliadate basis, company posted increase in Q1 net profit by 43% to Rs 1,195 crore as compared to Rs 836 crore recorded in the correponding quarter last year.  

Adani ports announces expiration of Tender Offer

Adani Ports and Special Economic Zone Limited today announced the expiration and results of its previously announced tender offer to purchase for cash, any and all of its outstanding US$650,000,000 3.50% Senior Notes due 2020. At the Expiration Time, valid tenders had been received with respect to US$280,812,000 of the Notes, the company added in the regulatory filing submitted.  

Reliance Capital repays outstanding CP of Rs 75 cr

Reliance Capital Ltd announced the exchanges today that the company has cleared an outstanding Commercial Paper amounting Rs 75 cr on July 24. "With the above repayment the CP outstanding stands at zero from the peak outstanding amount of approximately Rs. 3,500 crore. Though CPs were rated A4 by ICRA, the same have been repaid in full on the due dates," the regulatory filing added.  

Investors pull out $1.5 bn from Indian equities in July

Non-residents have pulled about $1.5 billion from Indian equities so far in July, reversing a strong trend of inflows in previous months, data from the Institute of International Finance showed on Wednesday.

“Unlike other episodes, which mostly coincided with broader (emerging market) outflows such as August 2015 and October 2018, these outflows are largely contained to India,” the IIF said in a report that includes data to July 22.

 

Closing Bell

Sensex Today: Domestic equity benchmarks BSE Sensex and NSE Nifty ended with registering minor losses by the closing bell, with S&P Sensex ending at 37,830 by declining 16 points and Nifty50 falling 19 points to 11,252 level.

As per SEBI July 2019 bulletin on Capital Markets

During June 2019, the total equity issuance (both public and  private  issuance)  declined  by  63.8  per  cent  to Rs 16,038  crore  from Rs 44,329  crore  in  May  2019,  mainly  on account of  slowdown in the public and rights issues. The corporate sector raised Rs 569 crore through public issuance  of   equity  compared  to Rs 25,527  crore  raised  in  the  previous  month.  IPOs  raised Rs 547  crore,  while  FPOs  and  rights  issuance  raises Rs 12  crore  and Rs 10  crore  respectively.  The  amount  raised  through  private  placement of  equity (i.e. preferential allotment and QIP route) too declined by 22.1 per cent from Rs 19,851 crore to Rs 15,469 crore.   While equity issuance witnessed some slowdown, the debt issuance  by  private  placement  continued  its  momentum  in  June  2019.    The  total  debt  issuance  (both  public  and  private  issuance)  increased  by  11.9  per  cent.  The  debt  issuance  through  private  placement  increased  by  12.6  per  cent  from  Rs  43,577  crore  to  Rs 49,072  crore  in  June  2019, while amount raised through public issue of  debt fell from Rs 1,048 crore in May 2019 to Rs 852 crore in June 2019.