All You Need To Know Going Into Trade On July 22

Asian markets are mixed at the start of mid-week trade after a subdued session on Wall Street. Doubts persist over the timing of a fresh stimulus program.

The U.S. Dollar extended its losses while gold held on to overnight gains, staying above the mark of $1,800/Oz.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index's performance in India, was little changed at 11,161 as of 7:00 a.m.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.

Let's take a look at the factors that can influence equities in today's session:

• Benchmark indices in Japan are little changed, have edged higher in South Korea and are declining in Australia.
• Futures on the Dow Jones trade higher by 65 points. The index ended 0.6% higher on Tuesday.
• Technology shares dragged the Nasdaq composite to a negative close.
• Senator Mitch McConnel casted fresh doubts on a rescue bill before some current benefits expired.
• MSCI gauge of developed and Emerging Market shares trades at the highest level since February.
• Yield on the 10-year treasury stood at 0.6%.
• West Texas Intermediate crude fell 0.9% to $41.54 per barrel. The EIA report crude oil inventories is due today.

Get your daily fix of the global markets here.

Earnings Fineprint: Axis Bank Q1FY21

• Net Interest Income up 20% to Rs 6,985 crore
• Net profit down 19% to Rs 1,112 crore
• Provisions at Rs 4,416 crore from Rs 3,815 crore
• Gross NPA at 4.72% from 4.86% last quarter
• Net NPA at 1.23% from 1.56% last quarter
• Additional provisions for Covid-19 worth Rs 733 crore this quarter
• Overall Provision Coverage Ratio including specific, standard and Covid-19 related provisions at 104%
• Moratorium amount at 9% in total loan book value as on June 30
• Net profit and Net Interest Income numbers compared on a year-on-year basis

Believe moratorium is not an indicator of asset quality: Axis Bank CEO Amitabh Chaudhry. #Q1WithBQ

Read more: https://t.co/BNXiLXl3Xd pic.twitter.com/e3R3Q9ka24

Earnings Fineprint: Hindustan Unilever Q1FY21

• Net sales up 4.4% to Rs 10,560 crore
• Ebitda flat at Rs 2,644 crore
• Ebitda margin at 25% from 26.2%
• Net profit up 7.2% at Rs 1,881 crore
• Home care revenue down 2.1% to Rs 3,392 crore
• Personal care revenue down 12% to Rs 4,039 crore
• Food & Refreshments revenue up 51.7% to Rs 2,958 crore
• Revenue from other businesses up 55.5% to Rs 171 crore
• All numbers are standalone and compared on a year-on-year basis

On Volume Growth:

-8% is underlying volume growth which excludes the impact of nutrition business (GSK acquisition) - HUL's e-mailed response to BloombergQuint's query.

Earnings Fineprint: Bajaj Finserv Q1FY21

• Revenue up 15.6% to Rs 14,190 crore
• Net profit up 43.8% to Rs 1,215.2 crore
• Higher tax reversals aid net profit
• Additional loss provision of Rs 1,450 crore during the quarter, taking the overall contingent credit loss provision for Covid-19 to Rs 2,350 crore
• Gross Written Premium of Bajaj Allianz General Insurance down 19% to Rs 2,289 crore
• Gross Written Premium lower due to decline in sales of vehicles, travel insurance and tenders for government health business. Underwriting improved significantly
• Gross Written Premium of Bajaj Allianz Life Insurance down 7% to Rs 1,700 crore
• All numbers are consolidated and compared on a year-on-year basis

Stocks To Watch

• Yes Bank: Moody's Investors Service says that the fund raise has strengthened capital and reduced risk for creditors. The rating agency said that the exercise is credit positive as it strengthens the bank's capitalisation and loss-absorbing buffers. The successful fund raise shows regained access to external market funds which shows improved financial strength and will in-turn support depositor confidence.
• Reliance Industries: To now consider first quarter results on July 30 instead of the earlier planned date of July 24.
• Dishman Carbogen Amcis: Rakesh and Rekha Jhunjhunwala buy 1.59% stake each, as per the company's shareholding Pattern for the June quarter. Both investors purchased 50 lakh shares each.
• Edelweiss Financial Services: Rakesh Jhunjhunwala increases stake in the company to 1.19% in the June quarter as compared to 1.04% last quarter.
• NOCIL: Shareholding pattern for the June quarter indicates that Ashish Kacholia's stake in the company has fallen below 2 Lakh shares / exited the company. His stake during the March quarter stood at 2.85%. Investor Dolly Khanna has reduced her stake to 1.5% from 1.72% in the last quarter.
• BEML: Gets order from the government for the supply of 1,512 tanks at an approximate cost of Rs 557 crore.
• Zee Entertainment: IDBI Trusteeship Services acquired 43.48 lakh shares or 0.45% stake in the company through invocation of pledge.
• CSB Bank: Total deposits in the June quarter up 7.5% to Rs 16,338 crore. Advances against gold and gold jewellery up 28.3% to Rs 3,843.5 crore. Liquidity Coverage Ratio at 230% as on June 30. This is as per the lender's first quarter business update.
• CG Power: Completed divestment of its step-down unit in France.
• Nifty Earnings Today: Bajaj Auto, Larsen & Toubro
• Non-Nifty Earnings Today: JSPL, Alembic Pharma, Dhanuka Agri, Heidelberg Cement, ICICI Securities, Music Broadcast, Network18, Rallis India, TV18 Broadcast

Earnings Reported After Market Hours

Polycab India Q1FY21

• Revenue down 50% to Rs 976.6 crore
• Net profit down 12.6% to Rs 117.6 crore
• Ebitda down 74.3% to Rs 57.5 crore
• Ebitda margin of 5.9% from 11.5%
• Income tax reversal of Rs 86 crore this quarter
• De-growth seen in wires and FMEG business
• Advertising expenses down 92% to Rs 3.2 crore
• Domestic distribution channel sales, housing wires business saw greater traction with double-digit growth in June
• All numbers are consolidated and compared on a year-on-year basis

IIFL Finance Q1FY21

• Net Interest Income up 1.8% to Rs 555.8 crore
• Net profit down 81.9% to Rs 31.6 crore
• Impairment of financial instruments at Rs 162.1 crore from reversal of impairment of Rs 104.3 crore
• Net profit up 26% to Rs 228 crore before Covid-19 related provisions and other exceptional items
• Loan AUM up 10% to Rs 38,335 crore
• Loans under moratorium fall to 31% in June from 60% at the end of May
• Offered second moratorium to all customers on an opt-in basis
• All numbers are consolidated and compared on a year-on-year basis

IndiaMART InterMESH Q1FY21

• Revenue up 3.9% to Rs 153.1 crore
• Net profit up 2.3 times to Rs 74.1 crore
• Ebitda doubles to Rs 73.3 crore
• Ebitda margin at 47.9% from 24.9%
• Ebitda margin improves due to lower employee costs and other expenses
• All numbers are consolidated and compared on a year-on-year basis

CRISIL Q2CY20

• Revenue up 13.5% to Rs 471.8 crore
• Net profit down 1% to Rs 66.3 crore
• Ebitda up 19.9% to Rs 116.2 crore
• Ebitda margin at 24.6% from 23.3%
• Ratings segment revenue up 10% to Rs 144.1 crore
• Research segment revenue up 18% to Rs 295.7 crore
• All numbers are consolidated and compared on a year-on-year basis

Brokerage Radar

CLSA On Axis Bank

• Buy rating maintained
• Price target raised to Rs 600 from Rs 580
• Results were better than expected on PPoP and asset quality
• Moratorium of 9.7% may not include some stressed loans
• Asset quality disclosures are a positive surprise
• Factoring in capital raise worth Rs 12,000 crore
• Expect RoE of 14% by FY23F
• Current valuations are undemanding

Macquarie On Axis Bank

• Outperform rating maintained
• Price target of Rs 487
• Moratorium book at ~10% was a positive surprise
• Collections from Moratorium 1.0 and 2.0 remain a key monitorable
• 78% of Moratorium 2.0 loans are secured assets
• Overall watchlist book remains stagnant at ~Rs 13,000 crore
• SME NPLs have gone up to 6.4% from 5.8%
• Senior management turnover remains a worry

CLSA On Hindustan Unilever

• Downgrade to outperform from buy
• Price target of Rs 2,600
• Expect business turnaround with market share gains in health and hygiene portfolio
• Addition of nutrition business helped reported growth
• Been positive on the stock on better execution, favourable portfolio mix and upside from GSK integration
• Business recovery in coming quarters critical for valuations
• Downgrade given the stock's recent run

UBS On Hindustan Unilever

• Buy rating maintained
• Price target of Rs 2,700
• Focus on execution and cost savings aids performance
• Nutrition business drives revenue growth in Q1
• Synergies to accrue from GSK integration
• Horlicks and Boost to benefit from HUL's wider distribution reach
• Nutrition business could be a catalyst for the stock

Morgan Stanley On Bajaj Finance

• Overweight rating maintained
• Price target raised to Rs 3,835 from Rs 2,740
• Raise earnings estimates on better-than-expected trends in Q1
• Increase in credit cost guidance a concern
• Moratorium exits might not be a conducive indicator of the portfolio risks
• Raise FY21/FY22 and FY23 estimates by 9%, 11% and 13% respectively

Pledged Share Details

• Adani Ports & SEZ: Promoter SB Adani Family Trust created pledge of 7.96 crore shares on July 20
• Nath Biogenes: Promoter Akash Farm released pledge of 4.61 lakh shares between July 14-16
• Adani Transmission: Promoter SB Adani Family Trust created pledge of 2.46 crore shares on July 20
• Adani Green Energy: Promoter SB Adani Family Trust created pledge of 75.5 lakh shares on July 20
• Emami: Promoter Suntrack Commerce released pledge of 30 lakh shares on July 21

(As Reported On July 21)

Bulk Deals

• eClerx Services: Promoter eClerx Services (Buyback) acquired 2.3 lakh shares (0.62%) at Rs 523.05 per share.
• Carborundum Universal: Kotak Fund acquired 11.63 lakh shares (0.61%) at Rs 235 per share and Smallcap World Fund sold 35 lakh shares (1.85%) at Rs 235.19 per share
• Shriram Transport Rights Issue: BNP Paribas Arbitrage acquired 1.47 lakh rights shares at Rs 107.73 per rights share
• PVR Rights Issue: Multiples Private Equity Fund sold 36,227 rights shares at Rs 221.2 per rights share and Blackrock Fund Advisors sold 20,445 rights issue share at Rs 220.13 per rights share.

Who's Meeting Whom

• 5paisa Capital: To meet One Up Financial Consultants on July 22
• Siemens: To meet Macquarie Asset Management and JP Morgan Asset Management on July 22

Trading Tweaks

• AGM Date: Bank of Baroda, GE Shipping, Godrej Agrovet, BASF India
• Ex-Date For Rights Issue: Mahindra & Mahindra Financial Services (Rights issue at 1:1, premium at Rs 48 per share)
• Price Band Revised From 10% To 5%: Dishman Carbogen Amcis, Den Networks
• Move Into Short-Term ASM Framework: BF Utilities, Gujarat Fluorochemicals, Future Enterprises, Vikas EcoTech
• Move Out Of Short-Term ASM Framework: Bharat Rasayan

Money Market Update

• The currency gained for the third straight day on Tuesday, to end at a two-week high.
• The rupee ended at 74.75 against the U.S. Dollar as compared to Monday's close of 74.92.
• It was the fourth best performing currency in Asia on Tuesday.

F&O Cues

• Nifty July futures end at 11,171; a premium of 8 points from a discount of 14 points
• Nifty July futures shed 1.2% and 1.3 lakh shares in Open Interest
• Nifty Bank July futures end at 22,287; premium of 24 points from discount of 35 points
• Nifty Bank July futures add 3.4% and 51,000 shares in Open Interest
• Enter F&O Ban: JSPL, Escorts
• Exit F&O Ban: Vodafone Idea, Canara Bank
• Stocks In F&O Ban: Adani Enterprises, BHEL, Century Textiles, Escorts, Glenmark, JSPL, L&T Finance, M&M Financial, Nalco, Sun TV

Nifty: July 23 Expiry

• Maximum Open Interest on Call side at 11,200 strike (26.8 lakh shares)
• Maximum Open Interest on Put side at 11,000 strike (31.9 lakh shares)
• Active Options: 11,100 Put (+20.7 lakh shares) and 11,500 Call (+7.3 lakh shares)

Nifty: July 30 Expiry

• Maximum Open Interest on Call side at 11,500 strike (28.8 lakh shares)
• Maximum Open Interest on Put side at 10,000 strike (37.8 lakh shares)

Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.