Opening Bell
Opening Bell July 21, 2020 Market Outlook Today’s Highlights Indian markets are likely to open in the green on the back of Results: Mahindra CIE, Bajaj Finserv, firm global cues amid positive outcomes of potential Covid- Syngene, Tata Elxsi, HUL, SBI Life, HDFC Life 19 vaccines trials. However, global news flows and earnings Insurance, Axis Bank, Bajaj Finance, outcomes of domestic companies would be key Heidelberg Cement, Hindustan Zinc, Polycab, monitorables. Himadri Specialty Chemicals Index Movement Markets Yesterday 39600 11800 . Domestic markets ended higher tracking gains in the IT 37600 sector and amid strong corporate earnings 11000 35600 . US markets ended higher led by gains in tech heavyweights 10200 and positive news flows about the Covid-19 vaccine 33600 31600 9400 8-Jul 11-Jul 14-Jul 17-Jul 20-Jul Key Developments BSE (LHS) NSE (RHS) . For Bajaj Finance, moratorium has come down from 27% C lose Previous C hg (%) MTD(%) YTD(%) P/E (1yrfwd) to 15%. Credit growth was reported at 7% YoY, down 6% S ensex 37,419 36,472 2.6 7.2 -9.3 23.1 QoQ to | 138000 crore, lowest ever in the last several Nifty 11,022 10,740 2.6 7.0 -9.4 22.4 years due to lockdown. New loan addition also slowed to 50 lakh from 60 lakh QoQ. Lower growth would impact Institutional Activity NIM negatively. NII is seen declining to | 4025 crore, down C Y18 C Y19 YTD C Y20 Yesterday Last 5 Days 15% YoY but provisions may surge to | 1500 crore (| 1940 F II (| cr) -68,503 40,893 -72,730 1,710 -1,960 crore in Q4FY20) as the management is planning to raise D II (| cr) 107,388 44,478 91,590 -1,522 -1,584 provisions for Covid and build higher PCR.
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