Stocks to Watch: Bajaj Auto, Bharti Airtel, HUL, Infosys, UltraTech
Informist, Thursday, Jul 22, 2021 - Morning brief for the stock market:
BIG PICTURE
* Jun CPI farm labour inflation hits 7-month high of 3.83%
* Serum Institute, Bharat Biotech to supply 155 mln doses/mo, says govt
TOP EVENTS TODAY
* Nifty 50 companies detailing Apr-Jun earnings:
+ BAJAJ AUTO, (net profit seen 11.10 bln rupees)
+ HINDUSTAN UNILEVER, (net profit seen 20.60 bln rupees, up 9.5% on year)
+ ULTRATECH CEMENT, (net profit seen 14.5 bln rupees, up 80% on year)
* Arp-Jun earnings to be detailed by: Aar Commercial Co, Agro Tech Foods, Bajaj Holdings & Investment, Bank of Maharashtra, Biocon, Can Fin Homes, Chennai Petroleum Corp, Csb Bank, HeidelbergCement India, Hindustan Zinc, ICICI Lombard General Insurance Co, IIFL Securities, India Pesticides, IndiaMart InterMesh, Indian Energy Exchange, Interactive
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Financial Services, Krishana Phoschem, Lloyds Steels Industries, Mahindra EPC Irrigation, Mphasis, Mukat Pipes, Music Broadcast, Oriental Aromatics, Pacheli Industrial Finance, Persistent Systems, Premier Polyfilm, Rane Engine Valve, Sahyadri Industries, Saregama India, Shiva Cement, Shree Worstex, Shrenik, South Indian Bank, Sterlite Technologies, Super Sales India, Suraj, Tavernier Resources, Victory Paper & Boards India, Vimta Labs, Wockhardt, Zenlabs Ethica,
* Board Meeting of: Indian Energy Exchange, to consider dividend
* Annual General Meetings of: Bajaj Auto, Bajaj Holdings & Investment, Mac Charles (India), Mahindra EPC Irrigation, Rane Engine Valve, Super Sales India, Trent
INDICATORS (previous session)
* NSE provisional net buy/(sell) in bln rupees, Jul 20: FIIs (28.35), DIIs 8.73
* Institutional net buy/(sell) in bln rupees, Jul 19: FIIs (22.79), MFs 2.27
* FII NSE futures net buy/(sell) in bln rupee, Jul 20: index (17.85), stock (3.65)
* Sensex: 52198.51, down 354.89 points; Nifty 50: 15632.10, down 120.30 points
* Crude: $70.30/bbl; Rupee: 74.6150/$1; Gold: $1,803.4/ounce; 10-year yield: 6.1190%
GLOBAL MARKETS
* Key US indices ended higher on Wednesday as upbeat quarterly earnings by corporates eased concerns over the impact of the COVID-19 crisis and overshadowed the rise in infections.
* Asian equities rose in trade today on cues from US market. Hong Kong's Hang Seng and South Korea's Kospi registered strong gains.
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DOMESTIC OUTLOOK
* Gains in the Nifty 50 July futures on SGX and firm global cues are likely to help benchmark indices snap a three-day falling streak today and recoup the near 2% losses made during the period. This might help the Nifty 50 move towards 15800 points, market participants said. Markets were closed on Wednesday on account of a public holiday.
IPO WATCH
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* Tatva Chintan Pharma Chem's initial public offering was subscribed over 182 times. The company received bids for 588.3 mln shares compared with the 3.3 mln on offer.
* Glenmark Life Sciences, a developer and manufacturer of active pharmaceutical ingredients, has priced its initial public offer between 695 rupees and 720 rupees per equity share. (BS)
EARNINGS FOR APR-JUN
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* CRISIL
(Consol PAT 1.01 bln rupees, up 51.94% YoY
Consol net revenue 5.29 bln rupees, up 12.01% YoY)
* DCM SHRIRAM
(Consol PAT 1.58 bln rupees, up 128.47% YoY
Consol net revenue 20.08 bln rupees, up 5.01% YoY)
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* ICICI PRUDENTIAL LIFE INSURANCE CO
(Loss 1.86 bln rupees, vs 2.88 bln rupees profit
NPI 66.02 bln rupees, up 18.93% YoY)
* Network18 Media & Investments
(Consol PAT 95.7 mln rupees, vs 622.0 mln rupees loss
Consol net revenue 12.14 bln rupees, up 50.47% YoY)
* TV18 BROADCAST
(Consol PAT 996.9 mln rupees vs 9.4 mln rupees YoY
Consol net revenue 11.55 bln rupees, up 48.85% YoY)
(Consol net profit 8.3 bln rupees vs 12.2 bln rupees a year ago
consol revenue 139.5 bln rupees vs 141.9 bln rupees a year ago)
* HAVELLS INDIA
(net profit 2.3 bln rupees vs 633.4 mln rupees a year ago
revenue 25.9 bln rupees vs 14.8 bln rupees a year ago)
* JUBILANT FOODWORKS:
(net profit 625.5 mln rupees vs 726.3 mln loss a year ago
revenue 8.8 bln rupees vs 3.8 bln rupees a year ago)
* HATHWAY CABLE & DATACOM
(Consol net profit 487.8 mln rupees vs 659.2 mln rupees a year ago
consol revenue 4.4 bln rupees vs 4.2 bln rupees a year ago)
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* GLAND PHARMA
(Consol net profit 3.5 bln rupees vs 3.1 bln rupees a year ago
consol revenue 11.5 bln rupees vs 8.8 bln rupees a year ago)
* POLYCAB INDIA
(net profit 750.6 mln rupees vs 1.1 bln rupees a year ago
revenue 18.4 bln rupees vs 9.9 bln rupees a year ago)
* SUPREME INDUSTRIES:
(Consol net profit 1.7 bln rupees vs 405.3 mln rupees a year ago
consol revenue 13.4 bln rupees vs 10.5 bln rupees a year ago)
* CEAT
(net profit 199.5 mln rupees vs 259 mln loss a year ago)
revenue 18.9 bln rupees vs 11.2 bln rupees a year ago)
* SCHAEFFLER INDIA
(Net profit 1.3 bln rupees vs 424.7 mln loss a year ago
Revenue 12.3 bln rupees vs 4.4 bln rupees a year ago)
* RALLIS INDIA
(Consol net profit 823.4 mln rupees vs 918.7 mln rupees a year ago
consol revenue 7.4 bln rupees vs 6.6 bln rupees a year ago)
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SECTOR NEWS
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* AVIATION: The impact of the second wave of COVID-19 on operations of airline operators and infrastructure development will further delay the progress of government's regional air connectivity scheme known as Ude Desh ka Aam Naagrik or UDAN scheme, rating agency ICRA said.
* BANKING: After eight public sector banks bought stake in a so-called bad bank, other entities, including private lenders, are expected to join the investment spree, a source said.
* HEALTHCARE: The fourth national serological survey for COVID-19, which included children aged above 6 years, has found presence of SARS-CoV-2 antibodies in 67.6%, or two-third of the general population in the country, the government said.
The government is funding development of four vaccine candidates, which are in clinical stage of development, and one vaccine candidate, which is in the advanced pre-clinical stage of development, it said in the Rajya Sabha on Tuesday.
States and Union territories reported no deaths due to the lack of oxygen amid the second wave of COVID-19, Bharati Pravin Pawar, minister of state for health and family welfare, said in a written reply to the Rajya Sabha.
* INFORMATION TECHNOLOGY: Bharat Broadband Network, under the Department of Telecommunications, has invited global tender for the development, upgradation, operation, maintenance and utilisation of BharatNet broadband infrastructure, the Ministry of Communication and Information Technology said.
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* ENERGY: Godrej & Boyce said its subsidiary Godrej Electricals & Electronics' Power Infrastructure and Renewable Energy has won an order worth over 1 bln rupees to construct a greenfield 400 kV gas insulated switchgear substation in Vikhroli, Mumbai, along with a 400 kV bay extension in Kharghar.
* FAST-MOVING CONSUMER GOODS: Food delivery platform Swiggy has raised $1.25 bln in its largest round of funding so far, led by SoftBank Vision Fund 2 and Prosus.
Amul owner Gujarat Cooperative Milk Marketing Federation has said it was targeting a turnover of 1 trln rupees by 2025. The 18-member cooperative's turnover grew a mere 2% to 530 bln rupees in 2020-21 (Apr-Mar) as the pandemic crisis weighed down demand.
* REGULATORY: The Securities and Exchange Board of India has tightened the norms around use of client collateral by brokers. The changes are aimed at reducing the risk of misappropriation of collateral.
* TELECOMMUNICATION: Tower Infrastructure Trust, an InvIT sponsored by Canadian alternative asset management company Brookfield, has signed a binding agreement to acquire Space Teleinfra, a shared telecom infrastructure provider, for 9 bln rupees.
STOCKS
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* ADANI ENTERPRISES: SEBI is scrutinising at least three companies controlled by Gautam Adani for alleged breaches of securities laws related to prevention of insider trading and inadequate disclosures, sources said. (Mint, Wed)
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* ASIAN PAINTS: Expects strong demand in the coming quarters, with relaxations in several markets aiding sales. The company is planning to gradually increase product prices to pass on higher raw material and other operational costs to consumers.
* BAJAJ FINANCE: To launch credit card with DBS Bank by Nov-end, Dec.
* BAJAJ FINSERV: To invest 3.42 bln rupees in arm Bajaj Finserv Direct.
* BAJAJ HINDUSTHAN SUGAR: Has allotted 143.8 mln shares at 13.28 rupees per share on preferential basis on conversion of existing unsecured loan of 1.91 bln rupees.
* BHARTI AIRTEL: Announced a collaboration with Intel Corp for fifth-generation network development by leveraging virtual and open radio access network (O-RAN) technologies and making indigenous solutions. (BS)
* CADILA HEALTHCARE: Got tentative approval from the US Food and Drug Administration for cancer drug Ibrutinib.
* CRISIL: Amish Mehta is set to succeed Ashu Suyash as the managing director and chief executive officer of the company, with effect from Oct 1.
* DCM SHRIRAM: Will spend 1.45 bln rupees to expand the 200-kl per day Ajbapur distillation unit by 120 kl per day to meet growing demand for ethanol.
* GRANULES INDIA: Chantilly unit cleared US Food and Drug Administration audit on Tuesday.
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* HCL TECHNOLOGIES: Has launched its cloud native platform SoFy, and HCL Now, which it describes as "cloud-native-as-a service".
* HINDALCO INDUSTRIES: Has cut the prices of its aluminium ingots, billets and wire rods by nearly 3% or 6,000 rupees per tn with effect from Tuesday. This follows two price hikes taken by the company last week.
* INFOSYS: US arm Infosys Public Services has enhanced its offerings by completing the pilot test of a blockchain solution designed to improve the efficiency, access and security of vital record-keeping in Riverside County, California's fourth-largest county and the 10th- largest in the US.
* Launched new cash management platform for Santander UK.
* IRCON INTERNATIONAL: Has completed 100-km track linking out of the 372-km stretch entrusted by Dedicated Freight Corridor Corp of India, in the Vaitarna-Sachin section, using a new track construction machine imported from the US.
* JUST DIAL: Reliance Retail Ventures has bought 13.06 mln shares, representing almost 21% stake in the company from promoter Venkatachalam Sthanu Subra Mani through a block deal on BSE, as per data from the bourse.
* MINDA INDUSTRIES: Has approved second tranche of investment of 14.26 mln rupees in special purpose vehicle CSE Dakshina Solar via acquisition of 178,250 shares at 80 rupees per share.
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* MUKAND LTD: The Competition Commission of India has approved the acquisition of 16.57% stake in the company, part of the Bajaj Group, by existing promoter entities Bajaj Sevashram, Bachhraj and Co, Bachhraj Factories and Sanraj Nayan Investments.
* NATIONAL ALUMINIUM CO: Has marginally raised the prices of its aluminium ingots with effect from Friday. The company has raised prices by 1,200 per tn, or less than 1%. It had cut prices earlier in the week.
* NBCC (INDIA): Has received a revised sanction cost of 8.2 bln rupees from the Ministry of Youth Affairs and Sports for the construction of National Sports University at Imphal, Manipur.
* SRF: Major part of the project for biaxially oriented polypropylene film plant in Thailand was commissioned and capitalised on Monday at a cost of $50.51 mln.
* THOMAS COOK (INDIA): The company and its group company SOTC Travel have launched a "Book-One-Get-One-Free – Companion" offer, for travel from West Bengal during the Durga Pujo festive season, on international tours to Dubai and Maldives.
* VEDANTA: Has cut the prices of its aluminium ingots by less than 1%, or 1,250 rupees per tn, with effect from Friday. This follows two price hikes taken by the company earlier in the week.
Lenders to VIDEOCON INDUSTRIES are likely to seek higher upfront cash from the Vedanta Group, which won the bid to acquire the bankrupt company, sources said, after an appeals court stayed the rescue plan on Monday. (Mint)
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* WIPRO: Will invest $1 bln in cloud technologies, capabilities, acquisitions, and partnerships over the next three years for cloud transformation.
* The company and Celonis launch global centre to optimise business processes.
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