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Sensex, Nifty Fall; Rupee At Record Low As Turkey Rout Spreads

Sensex, Nifty Fall; Rupee At Record Low As Turkey Rout Spreads
Pedestrians walk near the Bombay Stock Exchange (BSE), left, in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)
7 years ago
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India fell 0.4 percent to 11,385 as of 7:11 a.m.

  • Infosys has 12 lakh shares change hands in a block. Stock up 1.7 percent at record high of Rs 1,409.
  • Buyers and sellers were not immediately known

    Source: Bloomberg

Shares of the Thane-based pharma company rose as much as 7 percent to Rs 589.98 after its net profit doubled in June quarter.

Key earnings highlights:

  • Net profit at Rs 23.37 crore versus Rs 11.38 crore (YoY)
  • Revenue at Rs 374.29 crore versus 277.20 crore (YoY)

Shares of the Jalgaon-based micro-irrigation systems maker swung between gains and losses after it reported June quarter earnings.

Key earnings highlights:

  • Net profit up at Rs 81.75 crore versus Rs 44.33 crore (YoY)
  • Revenue up 21 percent at Rs 2,092 crore versus Rs 1,733 crore (YoY)

Shares of the Ahmedabad-based drugmaker fell as much as 4.89 percent to Rs 358.70 after it reported June quarter earnings.

Key earnings highlights:

  • Net profit more than triples to Rs 460.5 crore versus Rs 138.4 crore (YoY)
  • Revenue up 28 percent at Rs 2,769 crore versus Rs 2,155 crore (YoY)
  • U.S. sales up 27 percent at Rs 1,230 crore

Shares of the Mumbai-based department store chain operator declined 1.5 percent to Rs 37.05 after it reported second quarterly loss.

Key earnings highlights:

  • Net loss at Rs 30.35 crore versus loss of Rs 45.46 crore (YoY)
  • Revenue at Rs 1,018 crore versus Rs 1,041 crore (YoY)

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  • 3M India: The Bengaluru-based container and packaging company rose as much as 3.87 percent to record high of Rs 25,400. Trading volume was 8.6 times its 20-day average.
  • APL Apollo: The Delhi-based steel tubes and pipes maker fell as much as 2.7 percent to Rs 1,713. Trading volume was 17.1 times its 20-day average.
  • Finolex Industries: The Pune-based PVC pipes maker rose as much as 19.56 percent to Rs 712.90. Trading volume was 9.7 times its 20-day average.
  • Gujarat Mineral Development Corporation: The Ahmedabad-based mining company rose as much as 5 percent to Rs 123. Trading volume was 8 times its 20-day average.

Shares of the country's largest infrastructure construction company rose as much as 1.12 percent to Rs 1,287.80 after it won construction orders worth Rs 3,028 crore, the company said in an exchange filing.

Shares of the Chennai-based television channel operator fell as much as 6.2 percent to Rs 775.30 after it reported June quarter earnings.

Key earnings highlights:

  • Revenue up 42.5 percent at Rs 1,120.4 crore.
  • Net profit up 62.6 percent at Rs 409.2 crore.
  • Ebitda up 63.9 percent at Rs 734.8 crore.
  • Margin at 65.6 percent versus 57 percent.

Shares of the Chennai-based matrimony website operator fell as much as 4.8 percent to Rs 576 after Smaller Cap World Fund Inc. sold 3.43 lakh shares or 1.5 percent equity at Rs 666.98 each in Friday's session.

Shares of the Mumbai-based airline fell as much as 3.5 percent to Rs 266.35 on report that aviation regulator DGCA is set to conduct a financial audit of Jet Airways amid concerns over the financial health of the company, Press Trust of India reported citing a source.

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Shares of the Delhi-based jewellery retailer rose 5.88 percent to Rs 107 after it reported June quarter earnings.

Key earnings highlights:

  • Revenue up 14.6 percent at Rs 2,423.2 crore.
  • Net profit up 4.5 percent at Rs 141.9 crore.
  • Ebitda up 5.5 percent at Rs 248.4 crore.
  • Margin at 10.3 percent versus 11.1 percent.

Q1 Results: Coal India’s Profit Misses Estimates

Aditya Puri, managing director at HDFC Bank in an investor conference call said there was no acrimony with Paresh Sukthankar and it was a graceful exit for him.

Highlights from HDFC Bank conference call:

  • Very sorry to see Paresh go; there is no acrimony and it is a graceful exit
  • Paresh's exit is a shock to us and a loss to us
  • Depth and size of the bank is not subject to any individual; not even to me
  • Global tightening and trade uncertainties to result in volatile flows
  • This will not affect normal functioning of the bank
  • 75 percent of my transition has already been baked in
  • Paresh was a contender for the position of the MD
  • Paresh Sukthankar's resignation has nothing to do with who will be a successor at HDFC Bank
  • Do not want to stretch and go in other geographies

We remain positive on private sector lenders and lending growth is likely to increase to 16 percent gradually, Dhananjay Sinha, head of research at Emkay Global told BloombergQuint in an interview.

Key highlights of the interview:

  • Rising yields resulting in margin compression
  • The pain with reference to credit cost is seen continuing
  • From a longer-term perspective, private lenders to gain market share
  • On a sequential basis, inflationary pressure to go up
  • Yet to see the impact of MSP hike
  • See the possibility of a rate hike or two in FY19
  • Rupee depreciation neutralising higher costs for IT companies
  • More inclined towards software-based IT companies like Intellect etc.
  • Underweight on capital goods sector

It is a sea of red in the currency market as the probability of Turkey heading for a financial crisis and a tumbling lira has spooked investors from riskier assets.

The implied opening from forwards suggest the rupee may open sharply lower at 69.4875 a dollar. For the day, stocks and the risk appetite will determine the local unit's direction.

India's consumer prices likely rose 4.47 percent in July compared to 5 percent gain in June, according to a Bloomberg news survey.

This CPI data is the key data investors will be watching today. Yield on the 10-year benchmark fell one basis point, recording its sixth weekly decline - the longest stretch of weekly declines since June 2017. For today, it is likely to stay between 7.72-7.80 percent in the day.

CLSA on IPCA

  • Maintained ‘Sell’; raised target price to Rs 600 from Rs 560
  • Strong revenue, but weak margins in June quarter.
  • Sales and margin guidance for the current financial year is achievable.
  • Delay in resolution of U.S. sites not factored in current valuations.

Kotak on Union Bank

  • Maintained ‘Add’; cut target price to Rs 120 from Rs 130.
  • Drop in credit cost and improvement in NIM drive earnings.
  • Lot more positive commentary; Likely to reflect in next few quarters.
  • Earnings growth trends are likely to be volatile in the medium term.

Macquarie on NCC

  • Maintained ‘Buy’ with a target price of Rs 177.
  • Handsome beat all round.
  • Current order book gives strong revenue visibility.
  • Await revenue and margin guidance details.

Deutsche Bank on Aditya Birla Capital

  • Maintained ‘Buy’; cut target price to Rs 190 from Rs 195.
  • Growth mixed even as margins improve.
  • Life Insurance continues to see strong improvement.
  • NBFC, AMC growth slows but margins rally.
  • One of the strong plays on India's financialisation and formalisation themes.

BofAML on Indian Oil Corp

  • Maintained ‘Buy’ with a target price of Rs 210.
  • June quarter was supported by massive inventory gains.
  • Strong headline marketing Ebitda.
  • Significant increase in core run rate needed.
  • ONGC stake sale overhang receding; sale by Government of India could still happen in the current financial year.

IDBI Capital on PVR

  • Maintained ‘Buy’ with a target price of Rs 1,406.
  • PVR to acquire of SPI Cinemas to strengthens presence in Southern market.
  • PVR has paid premium valuation, but EV/screen similar to DT Cinemas acquisition.
  • SPI’s operating metrics and operating margin TDA margin better than that of PVR.
  • Recent deals with Bookmyshow and PayTM to support internal accruals.
  • PVR’s FY18 EPS to increase by 2.3 percent post deal.

Brokerages On SBI

Macquarie

  • Maintained ‘Neutral’ with a target price of Rs 281.
  • June quarter review: Loss again, but hope refuses to die.
  • Key negative was large slippages outside the watchlist and weak loan growth.
  • Sanctity of stressed asset guidance a big question mark.
  • Key positive was improvement in the provision coverage ratio.

Deutsche Bank

  • Maintained ‘Buy’; raised target price to Rs 365 from Rs 330.
  • High MTM and credit provisioning impact earnings.
  • Slippages still elevated, but strong recoveries aid NPL reduction.
  • Expect earnings recovery from the current quarter.

Kotak

  • Maintained ‘Buy’ with a target price of Rs 370.
  • Several one-offs across various segments; High investment provisions drive loss.
  • Much-awaited recovery in NPLs has begun to take shape.
  • All conditions in place for re-rating as NPLs on positive downward trajectory.

Brokerages On Coal India

BofAML

  • Maintained ‘Buy’ with a target price of Rs 335.
  • Ebitda and net profit inline with estimates.
  • Profitability rises despite sales mix deterioration.
  • Strong volume outlook on power growth and restocking.
  • Coal India’ coal is cheaper and preferred source vs imports.

Goldman Sachs

  • Maintained ‘Neutral’; cut target price to Rs 290 from Rs 293.
  • Net profit miss largely driven by lower revenues and higher employee costs.
  • FSA volumes higher due to higher coal supply to power plants, leading to lower e-auction sales.
  • Maintain Neutral as risk-reward for the stock to be balanced.

Brokerages On Hindalco

Deutsche Bank

  • Maintained ‘Buy’ with a target price of Rs 280.
  • June quarter’s operating performance in line.
  • Higher realisation reduced by higher transfer prices for alumina.
  • Improving product mix to drive earnings.

JPMorgan

  • Maintained ‘Overweight’ with a target price of Rs 355.
  • Combined with Utkal, a strong quarter.
  • Copper volume down but strong by-product aid; volume ramp up to improve further.
  • Remains well placed across the chain with attractive valuations.

Brokerages On GAIL

JPMorgan

  • Maintained ‘Neutral’; raised target price to Rs 360 from Rs 330.
  • Strong crude drove record marketing Ebitda.
  • Petchem recovery a positive; key disappointment was in LPG segment.
  • Potential near-term catalyst is tariff hikes.

CLSA

  • Maintained ‘Buy’; raised target price to Rs 435 from Rs 405.
  • June quarter beat on all fronts.
  • U.S. LNG drives sharply higher gas trading profits and lower opex.
  • All segments outperform other than gas transmission.
  • Gas in GST, tariff hike, curb on petcoke use and more city gas wins are triggers in the second half of the current financial year.

Brokerages On On Sun TV

Axis Capital

  • Maintained ‘Buy’ with a target price of Rs 1,200; implying a potential upside of 45 percent from the last regular trade.
  • Earnings beat on IPL.
  • Ad revenue growth remains strong; dependence on TN cluster has declined.
  • Subscription revenue growth trend – full benefits from Arasu yet to come in.
  • Sun TV intends to increase the payout going ahead.

IDFC Securities

  • Maintained ‘Outperform’; cut target price to Rs 979 from Rs 1,124.
  • June quarter beat on all fronts.
  • Strong IPL performance; promoters capping their salary at 2017-18 levels.
  • Cut estimates to factor in entry in new markets and launch of flanking channels.

Brokerages On Voltas

Deutsche Bank

  • Maintained ‘Hold’; raised target price to Rs 500 from Rs 490.
  • Strong outcome in a tough environment.
  • Projects business strong.
  • Worst not over for cooling business; expect margin decline.
  • Cooling business valuations look high, but at discount to peers.

CLSA

  • Maintained ‘Sell’; raised target price to Rs 480 from Rs 460.
  • Weak June quarter: AC disappoint; hope shifts to festive season.
  • AC market shift on faster move towards inverter ACs.
  • With AC business trading at high valuation, stock not ready for any negative surprises.

Brokerages On Indraprastha Gas

Deutsche Bank

  • Maintained ‘Buy’ with a target price of Rs 320.
  • Strong June quarter results driven by robust volume growth.
  • Fuel oil ban in NCR to revive PNG growth.
  • Margins to improve on price hike taken in May.

CLSA

  • Maintain Buy.
  • Miss on margins offset by much stronger volume growth.
  • Strong growth across segments; Industrial/commercial segment surprises.
  • Margins to improve further after recent out-of-turn hike in end-May’18.

Brokerages On Aurobindo Pharma

Kotak

  • Maintained ‘Neutral’ with a target price of Rs 640.
  • Strong on revenues; one-off provisions impact profitability.
  • Strong pipeline for 2018-19 positions Aurobindo for growth.
  • Believe Aurobindo is well positioned to gain volumes in the U.S.

CLSA

  • Maintained ‘Underperform’; raised target price to Rs 640 from Rs 630.
  • June quarter’s net profit missed estimate due to weak margins.
  • Margins impacted by provisioning for product recalls and higher input costs.
  • U.S. still has high base challenge.

Brokerages On Dr Lal PathLabs

CLSA

  • Maintained ‘Buy’ with a target price of Rs 1,320.
  • In-line sales; 50 basis points beat on Ebitda margin.
  • Third-consecutive quarter of above 25 percent volume growth.
  • Competitive intensity remains stable.
  • Volumes likely to continue moving from unorganised to organised.

Kotak

  • Maintained ‘Reduce’; raised target price to Rs 900 from Rs 865.
  • Strong start to the year; increased focus on wellness and bundled packages encouraging.
  • Believe structural trends remain favourable.
  • Rich valuations adequately price in growth narrative.

Who’s Meeting Whom
  • Graphite India to meet investors from Aug. 13-14.
  • Mahindra Logistics to meet Edelweiss Securities on Aug. 13.
  • Mahanagar Gas to meet investors from Aug. 13-17.
  • Sharda Cropchem to meet investors on Aug 13.

Insider Trades

  • JSW Steel promoter acquired 5.50 lakh shares from Aug. 7-8.
  • Raymond promoter acquired 25,000 shares from Aug. 8-9.
  • NOCIL promoter Mafatlal Industries sold 31,000 shares from Aug. 8-9.
  • Ultramarine & Pigments acquired 78,200 shares on Aug. 10.
  • Srikalahasthi Pipes promoters acquired 28,200 shares from Aug 8-9.
  • Menon Bearings promoters acquired 46,000 shares on Aug. 8.
  • Manpasand Beverages promoter acquired 10,000 shares on Aug 9.

(As reported on Aug. 10)

Bulk Deals
  • Matrimony.com: Smaller Cap World Fund Inc. sold 3.43 lakh shares or 1.5 percent equity at Rs 666.98 each.
  • Laurus Labs: Promoter Nagarani Chava bought 5.70 lakh shares or 0.5 percent equity at Rs 444.99 each.

AU Small Finance Bank

  • Redwood Investment Ltd. sold 2.40 crore shares or 8.3 percent equity at Rs 638 each.
  • Ourea Holdings Limited sold 28.79 lakh shares or 1 percent equity at Rs 638 each.
  • Nomura India Investment Fund Mother Fund bought 1.14 crore shares or 4 percent equity at Rs 638 each.
  • Kotak Mahindra Mutual Fund bought 23.50 lakh shares or 0.8 percent equity at Rs 638 each.

F&O Cues

  • Nifty August futures ended at 11,439.2, with a premium of 9.7 points versus 16.8 points.
  • August series- Nifty open interest up 0.6 percent and Bank Nifty OI down 5.4 percent.
  • India VIX ended at 12.8, up 1.3 percent.
  • Max OI for August series call at 11,500 strike price call option, OI at 41.5 lakh shares, up 12 percent.
  • Max OI for August series put at 11,000 strike price put option, OI at 50.7 lakh shares, down 3 percent.

NHPC (Q1, YoY)

  • Revenue down 8.5 percent at Rs 2,129 crore.
  • Net profit down 14.5 percent at Rs 737.6 crore.
  • Ebitda down 7 percent at Rs 1,290.5 crore.
  • Margin at 60.6 percent versus 59.6 percent.

Glenmark Pharmaceuticals (Q1, YoY)

  • Revenue down 8 percent at Rs 2,166 crore.
  • Net profit down 30 percent at Rs 233 crore.
  • Ebitda down 40 percent at Rs 347 crore.
  • Margins at 16.0 percent versus 24.5 percent.

Balaji Telefilms (Q1, YoY)

  • Revenue down 14.7 percent at Rs 123.4 crore.
  • Net loss at Rs 27 crore versus net loss at Rs 23.2 crore.
  • Ebitda loss at Rs 28 crore versus Ebidta loss at Rs 14.9 crore.

Andhra Bank (Q1, YoY)

  • Net interest income up 1.3 percent at Rs 1,460.1 crore.
  • Net loss at Rs 539.8 crore versus net profit at Rs 40.4 crore.
  • Provisions at Rs 1,707.5 crore versus Rs 5,429.3 crore (QoQ).
  • GNPA at 16.69 percent versus 17.09 percent (QoQ).
  • NNPA at 7.96 percent versus 8.48 percent (QoQ).

DLF (Q1, YoY)

  • Revenue down 26 percent at Rs 1,507 crore.
  • Net profit up 56 percent at Rs 173 crore.
  • Share of profit in associates and JV at Rs 241.5 crore in current quarter.
  • Ebitda down 66 percent at Rs 307.5 crore.
  • Finance cost down 61 percent at Rs 497.5 crore.
  • Margin at 20.4 percent versus 44.1 percent.

  • CreditAccess Grameen IPO subscribed 2.2 times on final day.
  • Nihilent Ltd. files for IPO; seeks to sell Rs 250 crore.

  • HDFC Bank: Paresh Sukthankar, deputy MD and founding member resigned.
  • BEML said FY19 revenue targeted at Rs 3,300 crore. Order book position as on June 20, 2018 at Rs 6,765 crore.
  • Ashok Leyland subsidiary Optare bagged Electric Double Decker order.
  • NBCC has received an order worth Rs 150 crore for construction of CBSE HQ.
  • Universal Cables signed pact with NKT, Germany for 400kV Extra high voltage XLPE underground cable.
  • Cipla partnered with MSN Laboratories for marketing and distribution of generic Xeloda.
  • Hinduja Global Solutions arm bagged a new two-year contract from Money Advice Service.
  • Cipla received a final approval for Generic Reyataz.
  • Welspun Corp bagged pipe supply order worth $51 million.
  • PVR plans to acquire south India-based multiplex chain SPI Cinemas Private Ltd. for Rs 633 crore
  • Jet Airways plans $400 million stake sale to PEs; approaches have been made to Blackstone, TPG, Indigo Capital Partners (Economic Times).
  • Future Retail may soon join hands with a foreign investor; Group said to be in talks with Amazon (Economic Times).

Lira Extends Retreat as Turkey Heads Toward a Financial Crisis

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