Share Market Highlights: Sensex ends 58 points lower, Nifty at 11,132; HUL, SBI, Hero MotoCorp top losers

Sensex, Nifty Updates: Sensex and Nifty struggled to keep gains and closed tad lower on Wednesday as said investors focus shifted back to the rising coronavirus infections despite restricted travel and lockdown in various parts of the world. Sensex closed 58 points lower at 37,871 and Nifty ended 29 points down at 11,132. Yesterday, Sensex ended 511 points higher at 37,930 and Nifty closed 140 points to 11,162. Meanwhile, Alembic Pharma, Bajaj Auto, Bajaj Holdings, Jindal Steel & Power, Larsen & Toubro, MTNL, Network 18, Rallis India are among the top companies that will be reporting their April-June quarterly earnings today.

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

3. 45 PM: Closing

Sensex and Nifty struggled to keep gains and closed tad lower on Wednesday as said investors focus shifted back to the rising coronavirus infections despite restricted travel and lockdown in various parts of the world. Sensex closed 58 points lower at 37,871 and Nifty ended 29 points down at 11,132.

3. 29 PM: Sebi slaps penalties of Rs 50 lakh on entities

Capital markets regulator Sebi has imposed penalties totalling Rs 50 lakh on eight entities for their failure to make proper disclosures regarding their shareholdings in PSIT Infrastructure and Services Ltd. The watchdog's order came after an investigation conducted by it into the PSIT matter for May 2012 to July 2015 period.

Sebi slaps penalties of Rs 50 lakh on entities over non-disclosure of shareholdings

3. 18 PM: Rakesh Jhunjhunwala's total holding stood at Rs 11,549 crore

During the April-June quarter when the domestic stock market was grappling with the impact of coronavirus pandemic, billionaire Rakesh Jhunjhunwala was busy picking up stake in the most unpopular, most battered stocks. The ace investor, who is referred as the 'Warren Buffett of India', acquired stake in some small cap stocks such as Dishman Carbogen Amcis, Autoline Industries, and Indian Hotels during the quarter ended June 30, 2020.

Rakesh Jhunjhunwala picked these stocks in June quarter; total holding stood at Rs 11,549 crore

3. 00 PM: Silver rates rise

Silver future prices continued their climb in the Indian commodity markets on Wednesday, in line with global markets amid rising coronavirus cases and ongoing tensions between US and China. 

Silver futures in the domestic market too gained 5.47% or 3,138 to trade at Rs 60,480 per kg today, after touching an intra day high of Rs 61,280 today.

Spot silver futures in global markets climbed as much as 7.2% to $22.8366 an ounce, the highest since 2013.

2. 40 PM: Bajaj Finance Q1 result update

Commenting on Q1 results of Bajaj Finance , Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking  said,"Bajaj finance reported a mixed set of numbers considering lockdown led lower retail and business activity. AUM grew 7% YoY however declined 6% QoQ. NII grew by 10% in line with AUM growth. Controlled opex helped Bajaj finance to report the growth of 25% in Pre provision profit. Spike in provision of almost 2x of Q1FY20 impacted profitability. On the asset quality front, lower slippages and write-off led to a decline in GNPA from 1.6% in Q1FY20 to 1.4% in Q1FY21. Moratorium books reduced from 27% to 15%. Credit cost guidance has been revised from Rs.5400 -Rs.5700cr to Rs.6000-Rs.6300cr. Given the lockdown, the Company decided to convert some of its existing customers with no overdue and good repayment track record from the term loan to a Flexi loan. In Q1 FY21, the company converted Rs.8,600 crore of term loans into Flexi loans."

2. 29 PM: HCL Tech stock update

Commenting on HCL Tech 1QFY21 results, Centrum Broking said the company beat our estimates on EBIT margin which aided in PAT beat.  Post steady 1QFY21, we model HCL Tech's USD revenue growth/(decline) at (2.7)/9.7% for FY21/FY22E (vs (5)/8% modelled earlier). We raise EBIT margin assumption post strong 1QFY21 EBIT margin execution. This leads us to raise EPS estimates by 10/6.6% for FY21/FY22E. While last few quarters FCF was impacted owing to IBM payouts (in June 2019/June 2020 totaling to USD1620mn) as part of acquisition, we see swing in free cash flow from 2QFY21 onwards. Hence, we potential for substantially upping dividends or even exploring buyback after few quarters. This itself can bring stability in HCL P/E multiples and help re-rating. Raise TP by 19% Rs730/sh ( 15.5x June22E EPS vs 14x June22E EPS earlier). Maintain BUY.

2. 03 PM: Infosys update

Commenting on IT major's 1QFY21 results, Centrum Broking said Infosys Q1FY21 results were a strong beat on USD revenues, EBIT margin and PAT. Led by strong 1QFY21 beat, we raise Infosys USD revenue growth assumptions to 0.5/11.5% (vs (4)/8% (decline)/ growth modelled earlier). Infosys currently trades at 20x FY22E EPS which is at 16% discount to TCS. With Infosys moving to leadership quadrant on growth for second consecutive year, it can narrow valuation differential ( vs TCS). We raise TP by 22% to Rs970/sh (20.5x June22E EPS vs 18.5x June22E EPS earlier) led by P/E upgrade and EPS upgrade. Our multiple upgrade is driven by Revenue, margin and EPS upgrade as well as strong deal signing. Retain BUY.

1. 48 PM: Axis Bank share price gains over 9% post Q1FY21 earnings

Axis Bank shares were trading as the top gainers on BSE in an otherwise weak market on Wednesday, as the private lender delivered 19.54% YoY growth in its Net Interest Income (NII) at Rs 6,985.31 crore in June 2020 from Rs. 5843.65 crore in June 2019. Bank's EPS fell to Rs 3.94 in June 2020 from Rs 5.29 in June 2019.

1. 28 PM: HUL share price declines 3% post Q1 earnings

HUL share price was trading lower today after the FMCG firm reported a 7.1% year-on-year jump in its June quarter net profit. Share price of HUL fell 3.37% to Rs 2,241 against previous close of Rs 2,319 on BSE. 

The share trades higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages. HUL share has gained 33.85% in one year and risen 16.83% since the beginning of this year.  In a month, the large cap stock has climbed 7%.

HUL share price declines 3% post Q1 earnings

1. 11 PM: Top losers and gainers

Bajaj Finance, followed by HUL, Maruti, IndusInd Bank, SBI, Tech Mahindra, L&T, Infosys and HDFC duo were among the top losers today, while Axis Bank, Sun Pharma, NTPC and ITC were among the gainers.

12. 01 PM: Axis Bank - 1QFY21 result update

Commenting on Q1 results of Axis Bank, Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking said," Axis bank PAT declined 19% YoY, which is marginally below our estimate. NII grew 20% YoY primarily supported by the lower cost of funds. Other income declined by 33% YoY, this is primarily owing to lower business activity. The cost to income declined 500bps to 39% sequentially. The big surprise is moratorium % to advance plunged from 25-28% mentioned in the Q4FY20 investor call to 9% in Q1FY21. Improvement in asset quality led by lower slippages in higher provision. Bank is continuously improving PCR which provides comfort on asset quality, considering all provision (including specific + standard + additional + COVID provisions) stands at 104% of GNPA at Q1FY21. Considering lower moratorium number, higher provision converge, strong performance by subsidiary and lower valuation compared to the historical average will keep positive movement in stock price."

11. 44 AM: Earnings today

Alembic Pharma, Bajaj Auto, Bajaj Holdings, Jindal Steel & Power, Larsen & Toubro, MTNL, Network 18, Rallis India are among the top companies that will be reporting their April-June quarterly earnings today.

11. 38 AM: HUL result update

Commenting on Q1FY21 results of Hindustan Unilever, Amarjeet Maurya, AVP - Mid Caps, Angel Broking said,"For 1QFY21, Hindustan Unilever (HUL's consolidated top-line grew by ~4% to Rs.10,731cr. Underlying domestic consumer business sales (excluding the impact of business combinations i.e. merger of GSK CH India with HUL) impacted by COVID disruptions led to a decline of 7% in the quarter. On the operating front, the company reported margin contraction (down by 117bp YoY to 25.1%), primarily on account of higher raw material costs and other expenses. The reported net profit grew by 6% YoY to Rs.1,897cr due to lower taxes and higher other income."

11. 20 AM: Gold prices hit fresh high

Gold and silver prices in the commodity market have been scaling fresh highs as traders shunned risk and sought a safe haven during coronavirus crisis.

Gold prices surpassed Rs 50K mark and hit an all-time high of Rs 50,060/10 gm today on MCX, tracking heightened buying sentiment from global markets. Silver futures in the domestic market too gained 5.47% or 3,648 to trade at Rs 60,990 per kg today, after touching an intra day high of Rs 60,998 per kg.

Gold prices hit Rs 50,000 for the first time as global equities decline

11. 11 AM: RIL share scales Rs 2,000 mark for first time

Reliance Industries Ltd (RIL) share price hit the historic mark of Rs 2,000 for the first time in today's trade amid volatile benchmark indices. RIL share price gained 1.4% to hit all time high of Rs 2,000 against previous close of Rs 1971.85 on BSE. RIL stock has gained 8.12% in the last 4 days.

RIL share scales Rs 2,000 mark for first time, gains 130% from 52-week low

11.02 AM: Market outlook

Vinod Nair, Head of Research at Geojit Financial Services said," Although the market uptrend remains intact, investors are advised to be cautious since it seems to be in overvalued territory. Result-heavy day today, and stock specific commentary will be looked at".

10. 54 AM: Coronavirus toll

Worldwide, there are 15,097,649 confirmed cases and 619,558 deaths from the coronavirus COVID-19 outbreak

In India, investor's focus is back to surging domestic coronavirus cases that neared 1.2 million in the nation.

10. 35 AM: Global markets

The euro's rally was triggered by European Union leaders striking a deal for a region-wide rescue plan, a huge step toward both recovery and a stronger union.

The spread of the coronavirus in the United States and other hotspots heightened concerns that economic recovery is far from assured in the near term. United States also reported more than 1,000 deaths from COVID-19 on Tuesday, leading to Nasdaq's closing in red.

10. 25 AM: Oil prices

Oil prices remain steady, haning on to most of their overnight gains. Brent futures slipped 0.5% to $44.12 per barrel and U.S. crude fell 0.5% to $41.70 a barrel.

10. 10 Nifty support and resistance

"The Nifty has now almost reached our expected target area of 11200 which is the 78.6 percent of the previous correction. The immediate supports for Nifty are placed around 11085 and 11000 whereas resistances are seen around 11190 and 11220," said Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking

10.03 AM: Gold hits all time high

Gold prices were trading near Rs 50K mark after hitting all-time high of Rs 49,975/10 gm today on MCX. Silver, meanwhile rose by Rs 3,000 to Rs 60,344 per kg.

Overseas, spot gold prices rose 1.3% to $1,865.81 an ounce, the highest in almost nine years

9. 50 AM: Nifty near term outlook

REliance Smart Money said in its daily note that," NSE-NIFTY continued its daily rising trend post a breakout from its long-term moving average 200-day SMA and rose to four and half month high. Yesterday, further buying in rate sensitive sectors has supported the up-move. We believe the index will continue its current up-move as its major technical indicator on the near-term timeframe chart remained in favour of bulls. This could lead the index towards 11,435 and 11,600 levels. In case of decline, the index will initially find support at around 10,865 mark and then at around 10,560 level.

As for the day, support is placed at around 11,124 and then at 11,085 levels, while resistance is observed at 11,190 and then at 11,218 levels."

9. 30 AM: Market turns red

Equity market gave up initial gains and reversed trend to fall marginally on Wednesday, amid weak global equities. Sensex was trading 75 points lower at 37,853 and Nifty was down 23 points at 11,138.

9. 14 AM: Opening session

Sensex and Nifty opened on a bullish note on Wednesday, amid positive global equities. Sensex gained 250 points higher and Nifty was trading at 11,231.

9. 00 AM: Stocks to watch today on July 22

HUL, YES Bank, Indiamart Intermesh, Axis Bank, L&T, Alembic Pharma among others are the top stocks to watch out for in Wednesday's trading session.

Stocks in news: HUL, YES Bank, Indiamart Intermesh, Axis Bank, L&T, Alembic Pharma

8. 50 AM: Earnings today

Alembic Pharmaceuticals, Larsen & Toubro, Jindal Steel & Power, and Bajaj Auto are among the top companies that will be reporting their April-June quarterly earnings today

8. 40 AM: Rupee closing

On the currency front, Indian rupee, the domestic currency benchmark ended stronger at   74.75 per dollar on Tuesday, as against the earlier close of 75.921 per dollar.

8. 30 AM: Closing

Sensex and Nifty ended higher on Tuesday amid positive global equities as hopes of COVID-19 vaccine and economic stilmulus kept investors upbeat. Extending gains for the fifth straight session, Sensex ended 511 points higher at 37,930 and Nifty closed 140 points to 11,162

Sensex ends 511 points higher on COVID-19 vaccine hopes, banking stocks rally