Share Market Highlights: Sensex ends 37 points lower, Nifty at 11,308; Dr Reddy, Sun Pharma top losers

Sensex, Nifty Highlights on August 12:Sensex and Nifty ended flat with negative bias on Wednesday, on back of heavy selling pressure in pharma and banking stocks, amid negative global equities. Weak domestic factory output data further dampened investors' mood. BSE 30-share Sensex ended 37 points lower at 38,369 and NSE Nifty 50 closed 14 points higher at 11,308. Meanwhile, April-June quarterly earnings announcements by Aurobindo Pharma, Bharat Forge, Ashok Leyland, Tata Power, Cummins, Advanced Enzyme, Aster DM Healthcare, Natco Pharma will also set the tone for the stock market today. Yesterday, Sensex ended 244 points higher at 38,407 and Nifty closed 52 points higher at 11,32.

Here's a look at the updates of the market action on BSE and NSE today

3.51 PM: Closing session

Sensex and Nifty ended flat with negative bias on Wednesday, on back of heavy selling pressure in pharma and banking stocks, amid negative global equities. Weak domestic factory output data further dampened investors' mood. BSE 30-share Sensex ended 37 points lower at 38,369 and NSE Nifty 50 closed 14 points higher at 11,308.

3. 39 PM: Market at close

Commenting on markets' closing today, Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said," Markets continued in a range but managed to keep above 11250. We are in a market where dips can be bought into - the target for the Nifty should be 11500. A support or stop loss can be placed below 11100."

3. 23 PM: Sanofi Q1 update

Commenting on Sanofi India (SIL) Q1 earnings, Centrum Broking said,"Company delivered quarterly earnings ahead of our estimates. It reported decline in revenue by 5% YoY but the results are not exactly comparable as Ankleshwar hive-off to Zentiva was completed on 29th May20. The continuing operations have reported nearly 1% YoY growth. Gross margins were at 55.5% Vs. 54.4% YoY Vs. 56.6% QoQ. Staff cost was up 8% YoY while other expenses declined 31%YoY. The EBITDA at Rs1.77bn increased 12% YoY while flat QoQ with EBITDA margins at 24.9% improved by 380 bps YoY. With inline other income, depreciation and ETR the PAT for the quarter stood at Rs 1.36bn, up by 30% YoY/ flat QoQ (adj. impairment). We maintain Sanofi's multiple in-line with its peers at 37x CY21E EPS and maintain Add rating with a target price of Rs 8955."

3.12 PM: Adani Ports Q1 update

Commenting on Adani Ports & SEZ's (APSEZ) Q1 earnings, Centrum Broking said,"Company reported a resilient performance in Q1FY21 demonstrating the strength of its assets as well as its agility in aligning its operating costs to the current environment. PAT declined 26%yoy to Rs7.6bn but was above estimate of Rs4.4bn led by higher realizations and margins. Cargo declined 26.9% yoy to 41.5mt while revenue declined by 18%yoy to Rs22.9bn (estimate: Rs21.8bn). EBITDA declined 24.4%yoy to Rs14bn (estimate: Rs10.9bn) and EBITDA margin stood at 60.8% (estimate: 49.9%). Port EBITDA margins were strong at 69.5% (-90bp yoy) led by better cargo mix, price hike of ~2.5%, benefit of INR depreciation and cost rationalization."

3.09 PM: Minda Industries share price climbs over 7%

Minda Industries share price jumped over 7% on Wednesday after the auto components maker announced that its board has fixed the price at Rs 250 per equity share for its Rs 250-crore rights issue.

Company's board of directors approved fixing of issue price at Rs 250 per equity share, including a premium of Rs 248 per equity share over the face value of Rs 2 per equity share. As per the company's filing, the rights issue will open on August 25 and close on September 8 and the last date for on market renunciation is September 3, 2020.

Following the update, shares of Minda Industries touched an intraday high of Rs 300.65, rising 7.13% against the earlier close of Rs 280.65 on BSE. Minda Industries shares have gained after 2 days of consecutive fall.

Minda Industries share price climbs over 7% after board fixes price for rights issue

2. 43 PM:  Mother Sumi Q1 update

Commenting on 1QFY21 results of Motherson Sumi Systems, Rajit Rajoriya, Equity Research Associate, Angel Broking  said," Revenue from Operations of Motherson Sumi declined by 49.5 percent YoY to Rs 8,431Cr for Q1FY21. Company posted a consolidated net loss of Rs 1192cr. for the June quarter as against street expectations of Rs540 crore loss and a profit of Rs 360.6 crore in Q1FY20. Business activity was badly hit as operations were severely impacted at major plants due to lockdowns. Overall the company reported numbers which were well below street estimates."

2. 31 PM: Bosch Q1 update

Commenting on 1QFY21 results of Bosch, Rajit Rajoriya, Equity Research Associate, Angel Broking said," Bosch Limited has continued its investment in restructuring, reskilling, and other transformational projects. After allowing for this exceptional item, loss before tax stood at INR 200 crores, and loss after tax at INR 120 crores. Powertrain Solutions division registering a decline of 78.3 percent. However, the Two-Wheeler and Power sports product unit witnessed good double-digit growth during the quarter. Outside the Mobility Solutions business sector, business recorded a decline of 59.9 percent. Company will remain focused on the agriculture sector, particularly on tractor demand  for the upcoming quarters. However, Company predicts the auto sector as a whole will take four to five years to return to the levels of 2018-19."

2. 00 PM: Mahanagar Gas Q1 result update

On Mahanagar Gas (MGL)'s Q1 uodate, Centrunm Broking said," Company reported volumes at 101.3mmscm (-62.5% yoy) a 5-year low, well below CenE 134.6mmscm, driven by sharply lower CNG volumes which saw CoVid lockdown impact transport demand much more than estimated. For rest of FY21E also management guidance of volumes remains muted and underpins our cautious stance on near term prospects." The brokergae has assigned Buy rating to the stock

1. 46 PM: Nifty outlook

On Nifty;'s outlook, Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investment said," We are still trading above 11250 which is a good intra day support for the market. If we break this level upon closing, we could test 11150. On the upside we could continue being bullish for a target of 11450-11500."

1. 32 PM: Gold outlook

Expressing views on Gold, Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking said," It is a right time of profit booking in Gold and Silver, However the trend of bullions are still positive, but traders should have cautious approach while taking any position in Bullions on these higher levels. Prices are now in over bought zone. Dollar index is recovered from lower levels due to hawkish Job data released last week. We expect some profit booking in Gold and Silver as in the physical market people are selling their ornaments and bars for getting advantage on higher levels. We expect gold may test Rs 52000 levels to 51000 levels and Silver may test Rs 69000 levels to 70000 levels in the short term towards the down side. Traders may book profit on higher levels and  may go for sell in gold and silver, however global economic instability and geopolitical tension between US and China may work as a supportive factor for bullion in the long run.  Approval for First COVID-19 vaccine by Russia's health ministry has also put pressure on the Bullions."

1. 15 PM: HDFC share price rises marginally 

Shares of country's largest mortgage lender- Housing Development Finance Corporation (HDFC) were trading marginally higher on Wednesday after the HFC said it has raised Rs 10,000 crore equity capital by issuing shares to qualified investors, including Government of Singapore and Invesco Oppenheimer Developing Markets Fund.

Following the news update, shares of HDFC recovered from early lossesand traded 0.63% higher to touch an intraday high of Rs 1,837 as agains tthe earlier closing of Rs 1,825.35 on BSE. Earlier today, the stock price of HDFc also touched an in trady low of Rs 1,802.15, after opening at Rs 1,825 on BSE.

1.02 PM: HDFC raises capital

HDFC said it has issued 5,68,18,181 equity shares at an issue price of Rs 1,760, aggregating to Rs 10,000 crore.

The lender said it has raised Rs 3,693 crore through an issue of non-convertible debentures. The company issued 36,930 secured redeemable non-convertible debentures of face value of Rs 10 lakh each due on August 11, 2023, at par aggregating Rs 3,693 crore carrying a coupon rate of 5.40% payable annually.

It has also allotted 1,70,57,400 warrants at an issue price of Rs 180 per warrant, aggregating to around Rs 307 crore under the QIP issue, as per the mortgage lender's regulatory filing.

12. 46 PM: Eicher Motors share gains 2%

Eicher Motors share price gained in early trade today after board of the firm approved a stock split in the ratio of 10:1. Eicher Motors stock gained up to 1.8% to Rs 21,835 against previous close of Rs 21,435 on BSE. Share price of Eicher Motors has risen 1.79% in the last 2 days. Total 1487 shares changed hands amounting to turnover of Rs 3.22 crore. Market cap of the firm stood at Rs 59,369 crore.

Eicher Motors share gains 2% after board approves stock split

12. 34 PM: Adani Ports share climbs 4%

Share price of Adani Ports and Special Economic Zone Limited (APSEZ) rose over 3% in early trade today despite the firm reporting a 26.33 per cent fall in consolidated profit to Rs 757.83 crore in Q1, impacted by COVID-19-induced lockdown. Adani Ports stock rose 3.96% to Rs 348 against previous close of Rs 334.85 on BSE. Stock of Adani Ports has gained 6.05% in the last 4 days.

Adani Ports & SEZ share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Adani Ports share climbs 4% despite fall in Q1 earnings

12. 12 PM: Market recovers from losses

Sensex and Nifty traded flat with negative bias on Wednesday, amid negative global equities. Weak domestic factory output data further dampened investors' mood. BSE 30-share Sensex was trading 75 points lower at 38,315 and NSE Nifty 50 as falling 26 points higher at 11,295

11. 58 AM: Top losers and gainers

Bajaj Finance, followed by L&T, Bajaj Finserv, Sun Pharma, Kotak Bank, HDFC Bank and Reliance Industries were among the top losers on Sensex. On the other hand, SBI, M&M, Maruti, Bajaj Auto and Titan were among the gainers.

11. 44 AM: Coronavirus toll

In India, coronavirus cases surpassed 23 lakh mark today, with total deaths standing at 0.46 lakh. Worldwide, there are 205 lakh confirmed cases and 7.45 lakh deaths from COVID-19 outbrea.

11. 32 AM: Rupee slips 6 paise to 74.84

The domestic currency benchmark depreciated 6 paise to 74.84 per dollar on Wednesday's opening bell, tracking negative domestic equities and strengthening US currency.

At the interbank forex market, the local unit opened at 74.78  and later fell to 74.84 per dollar, down 6 paise over its last close of 74.78 on Tuesday.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.28 per cent to 93.89.

Rupee slips 6 paise to 74.84 amid strong dollar, weak equities

11. 27 AM: MCX Gold and silver today

Extending decline for the third straight session, Gold futures on Multi Commodity Exchange were trading Rs 1,349 or 2.82% lower at Rs 50,580 per 10 gm against the previous close of Rs 51,929 per 10 gm. Gold futures touched an intraday high of Rs 51,650 per 10 gm, which was Rs 4,540 lower than its all-time high of Rs 56,191, hit last Friday.

Silver September futures also fell by Rs 4,647 to Rs 62,287 per kg today after they touched an intraday high of Rs 64,257 per kg. Silver Futures have hit a lifetime high of Rs 77,949 in last Friday's session.

Gold prices slip Rs 4,500 from record high to Rs 50,000

11. 13 AM: Gold price technical indicators

Geojit Financial Services said in a note,"Initial pullbacks can be seen but it required to clear $1980 to stabilize the momentum. Else, likely for corrective selling pressure towards $1860 followed by $1780 levels for the day." As per the brokerage, MCX Gold August, resistance is placed at 53,600 and support is at 50,450/49,200. For MCX Silver August futures, the resistance is at 70,120/72,980 and the support is placed at 60,100.

11.05 AM: Gold outlook

Commenting on Gold's outlook, Hareesh V, Head Commodity Research at Geojit Financial Services said," Gold lost some ground after Russia announced the world's first Covid vaccine and profit booking was seen at higher levels. A recovering US dollar and gains in equities too pressured the safe haven asset. However, hopes of fresh economic stimulus measures and rising US-China tensions continue to offer lower level support to the metal.

On London spot technical outlook, he added," As long as the support of $1820 holds the downside we can expect recovery rallies in the counter. Else, it may continue with a weak bias for the day."

10. 46 AM: Nifty outlook

On Nifty outlook, Geojit Financial in its note said," Our warning yesterday was to expect volatility once inside the 11375-11444 region, and Nifty ended up turning lower from 11372.85 and attempted several times to breach low of previous day. The two doji's in as many days, along with a negative divergence in oscillators, will force Nifty towards a lower opening, with 10640 emerging as the possible downside objective. Hopes of an early reversal will rest on the ability of 11130 vicinity to attract buying, or on Nifty managing to float above 11285 after the initial weakness.

10. 32 AM: Global markets today

Asian markets were trading lower as investors continued to watch developments on US-China tensions and on concerns over coronavirus.

US markets closed lower after the recent consecutive gains with Technology stocks giving up more and as investors assessed the progress of coronavirus aid from US. European markets closed higher as investors continued to hope for a US stimulus deal to support economy which outweighed the tension between US and China.

10. 12 AM: Oil prices

Oil price showed more weakness despite expectation over US stimulus package to support economy and pick up oil demand from Asia.

10.05 AM: Global cues

Overseas, Asian stocks were trading lower on Wednesday after Wall Street dipped amid growing uncertainty about an additional round of US fiscal stimulus. In Wall Street, stocks closed lower on Tuesday on growing uncertainty about fiscal stimulus deal in Washington.

9. 42 AM: FII/ DII data

Foreign portfolio investors (FPIs) bought shares worth Rs 1,013.66 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,415.54 crore in the Indian equity market on 11 August, provisional data showed.

9. 33 AM: IIP Data

India's industrial output contracted to 16.6% in June as against a 1.3% growth year-on-year (YoY), as per the Index of Industrial Production (IIP) data released by the government on August 11.

9. 23 AM: Nifty outlook

Reliance Smart Money in its note said,"NSE-NIFTY rose to five month high continuing its daily rising trend. As mentioned earlier, our bullish view will remain intact on the index, as its key technical indicator has remained in favour of bulls. However near-term consolidation or a minor decline cannot be ruled out as the index has once again formed an indecisive pattern-Doji on the daily chart. A stable move above its near-term hurdle point (placed around 11,340 level) will be positive and that will strengthen the index for its next leg of up-move. That could lead the index towards 11,435 and 11,600 levels. In case of decline, the index will initially find support around its 20-day EMA and then around its 200-day SMA, which are now placed at 11,030 and 10,850 levels, respectively.

As for the day, support is placed at around 11,290 and then at 11,257 levels, while resistance is observed at 11,364 and then at 11,406 levels."

9. 14 AM: Opening bell

BSE 30-share Sensex was trading 218 points lower at 38,188 and NSE Nifty 50 as falling 72 points higher at 11,250.

9.02 AM: Pre open session

BSE 30-share Sensex was trading 73 points higher at 38,470 and NSE Nifty 50 as rising 56 points higher at 11,378.

8. 55 AM: Market outlook

On Nifty's technical indicators, Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said, "After crossing the hurdle of 11250, we have moved swiftly to over 11,350 upon opening itself. We should be able to achieve 11,400 and then 11,500 in this intermediate upward rally. The Nifty support continues to be at 11,100."

8. 50 AM: Market expectations

Sensex and Nifty are likely to open on a bearish note on Wednesday, amid negative global equities. SGX Nifty was rising 100 points lower, indicating negative trend in domestic grounds today.

8. 44 AM: Stocks to watch today on August 12

HDFC, Eicher Motors, Dr Reddy, Adani Ports, JMC Projects among others are the top stocks to watch out for in Wednesday's trading session.

Stocks in news: HDFC, Eicher Motors, Dr Reddy, Adani Ports, JMC Projects

8. 40 AM: Earnings today

Aurobindo Pharma, Bharat Forge, Ashok Leyland, Tata Power, Thermax, Aarti Industries, Advanced Enzyme, Aster DM Healthcare, Balaji Amines, Brigade Enterprises, Century Plyboards, Cummins India, eClerx Services, Graphite India, GSFC, Gulf Oil Lubricants, Indostar Capital Finance, Kalpataru Power Transmission, Natco Pharma, NCC, Sundram Fasteners, Transport Corporation of India among others will report Q1 earnings today.

8. 35 AM: Market outlook

"Going ahead, the upcoming macroeconomic data viz. CPI, IIP data and Supreme Court hearing on AGR case (Friday) would be on investors' radar," said Ajit Mishra, VP - Research, Religare Broking on markets' near-term outlook.

8. 30 AM: Closing

Sensex and Nifty ended on a bullish note on Tuesday amid heavy buying in banking and financial stocks tracking mixed cues from global markets. Extending gains for the third consecutive session, Sensex ended 244 points higher at 38,407 and Nifty closed 52 points higher at 11,322.

Sensex, Nifty close higher for 3rd session amid rising Covid-19 cases