Sensex, Nifty End At Record; HDFC AMC Jumps 65% On Debut

• West Texas Intermediate crude was at $68.58 a barrel, up 0.1 percent.
• Brent crude traded 0.1 percent higher at $73.26 a barrel.
• Gold traded at $1,214.15 an ounce.
• LME copper futures fell 0.7 percent to $6,163.50 a metric ton.

Shanghai Exchange

• Steel traded higher for second day; up 0.5 percent.
• Aluminium traded higher for second day; up 0.1 percent.
• Zinc traded higher for two days in a row; up 0.8 percent.
• Copper traded higher; up 0.6 percent.
• Rubber snapped four-day losing streak; up 0.8 percent.

• Will quotas work at a time when jobs are shrinking, asks Nitin Gadkari.
• Foreign investors poured in over Rs 2,300 crore in the Indian capital markets in July.
• Virat Kohli tops the ICC test ranking for batsmen.
• Senior executive of a Nirav Modi-owned firm gets bail.
• The genesis of a perpetual crisis in the film industry.
• WeWork wants to double locations as it completes one year in India.
• Is it time for Facebook to consider hard limits to Zuckerberg’s power?
• Many questions and few answers on the UIDAI helpline mystery.

Here are the key events to watch out for this week:

• Earnings season includes results from: HSBC, SoftBank, Japan Post Bank, Disney, 21st Century Fox, Deutsche Telekom, China Mobile, Glencore and Adidas.
• Tuesday brings the latest Reserve Bank of Australia meeting that is likely to produce no change in either the record-low cash rate or the long-term guidance.
• The Bank of Japan releases a summary of opinions Wednesday from its July 30-31 meeting, at which it tweaked elements of its stimulus policy to make it more sustainable.
• Samsung Electronics unveils its next Galaxy Note smartphone.
• Japan announces a preliminary reading of second-quarter gross domestic product. Economists expect a solid rebound from a first-quarter contraction.
• U.S. consumer prices probably rose in July, consistent with a pickup in inflation that’s projected to keep the Federal Reserve on a path of gradual interest-rate increases, economists forecast before Friday’s release.

• Avendus set to buy IDFC mutual funds and securities units in deal valued between Rs 5,000-6,000 crore (The Economic Times)
• Wipro to settle National Grid lawsuit for $75 million in the U.S.
• ICRA proposing a buyback of shares on Aug. 9.
• Allahabad Bank mulls raising equity capital by was preference issue to GoI on Aug. 14.
• Premier Explosives bagged orders worth Rs 68.9 crore from Coal India.
• Puravankara’s Goa arm received bookings for more than 800 units for residential project.
• Tata Group and Dabur India to bid for Kraft Heinz $1 billion sale of India business. Cadila Healthcare arm shows interest in the Kraft Heinz offer for sale. (Bloomberg)
• TCS’ board approved buyback. Record date fixed at Aug. 18.

• HDFC AMC shares to start trading on BSE/NSE after IPO that got 83 times demand at Rs 1,100 each.

Nifty Earnings To Watch

• Adani Ports and Special Economic Zone

Other Earnings To Watch

• Adani Power
• Arvind
• Avanti Feeds
• Britannia Industries
• Caplin Point Laboratories
• Firstsource Solutions
• Graphite India
• Max Financial Services
• Parag Milk Foods
• Ujjivan Financial Services

Relaxo Footwear (Q1, YoY)

• Revenue up 17.3 percent to Rs 566.5 crore.
• Net profit up 23 percent to Rs 46 crore.
• Ebitda up 17 percent to Rs 83 crore.
• Margins at 14.6 percent versus 14.7 percent.

Suzlon Energy (Q1, YoY)

• Revenue down 50.5 percent to Rs 1,277.5 crore.
• Ebitda down 83.8 percent to Rs 77 crore.
• Net Loss of Rs 572.8 crore versus Rs 49 crore profit.
• Forex gain of Rs 253.6 crore versus Rs 42.4 crore.

Wockhardt (Q1, YoY)

• Revenue up 13.1 percent to Rs 1,007.7 crore.
• Ebitda at Rs 28.8 crore versus Ebitda loss of Rs 79.3 crore.
• Margin at 2.8 percent versus -8.9 percent.
• Net loss narrows to Rs 86.2 crore versus Rs 409.7 crore.

KEC International (Q1, YoY)

• Revenue up 13.4 percent to Rs 2,104.7 crore.
• Net profit up 37.8 percent to Rs 86.8 crore.
• Ebitda up 22.6 percent to Rs 216 crore.
• Margin at 10.3 percent versus 9.5 percent.

Sical Logistics (Q1, YoY)

• Revenue up 32.1 percent to Rs 323.5 crore.
• Net profit down 64 percent to Rs 4 crore.
• Ebitda down 13 percent to Rs 38.4 crore.
• Margin at 11.9 percent versus 18 percent.

Berger Paints (Q1, YoY)

• Revenue up 18.9 percent to Rs 1,483 crore.
• Net profit up 19.5 percent to Rs 135 crore.
• Ebitda up 22.6 percent to Rs 227 crore.
• Margin at 15.3 percent versus 14.8 percent.

Waterbase (Q1, YoY)

• Revenue up 22.5 percent to Rs 154.3 crore.
• Net profit up 23 percent to Rs 17.7 crore.
• Ebitda up 3.6 percent to Rs 26 crore.
• Margin at 16.8 percent versus 19.8 percent.

Steel Authority of India (Q1, YoY)

• Revenue up 37.4 percent to Rs 15,907 crore.
• Net profit of Rs 540.4 crore versus net loss of Rs 801.4 crore.
• Ebitda at Rs 2,576.5 crore vs Ebitda loss at Rs 83.8 crore.

Indo Count Industries (Q1, YoY)

• Revenue up 10.2 percent to Rs 440.3 crore.
• Net profit down 10 percent to Rs 28.8 crore.
• Ebitda up 44.4 percent to Rs 47.5 crore.
• Margin at 10.8 percent versus 8.2 percent.

Jaiprakash Power Ventures (Q1, YoY)

• Revenue up 8.75 percent to Rs 1083.07 crore.
• Ebitda up 24.4 percent to Rs 436.8 crore.
• Margin at 40.3 percent versus 35.2 percent.
• Net profit at Rs 4.14 crore versus net loss of Rs 19.02 crore.

Laurus Labs (Q1, YoY)

• Revenue up 12.7 percent to Rs 539 crore.
• Net profit down 57.3 percent to Rs 16.6 crore.
• Ebitda down 16.6 percent to Rs 80.5 crore.
• Margin at 14.9 percent versus 20.2 percent.

Adlabs Entertainment (Q1, YoY)

• Revenue down 2.2 percent to Rs 84.7 crore.
• Net loss of Rs 20.9 crore versus net loss of Rs 22.5 crore.
• Ebitda up 5.9 percent to Rs 34.1 crore.
• Margin at 40.3 percent versus 37.2 percent.

Shipping Corporation of India (Q1, YoY)

• Revenue up 3.4 percent to Rs 894.3 crore.
• Net loss of Rs 206 crore versus net loss of Rs 6.7 crore.
• Ebitda down 98.2 percent to Rs 3 crore.
• Margin at 0.3 percent versus 19.2 percent.

Entertainment Network (India) (Q1, YoY)

• Revenue up 16.4 percent to Rs 121.6 crore.
• Net profit up 102.2 percent to Rs 9.3 crore.
• Ebitda up 65.5 percent to Rs 28.3 crore.
• Margin at 23.3 percent versus 16.4 percent.

Sandhar Tech (Q1, YoY)

• Revenue up 25 percent to Rs 493 crore.
• Net profit up 48 percent to Rs 22 crore.
• Ebitda up 15 percent to Rs 49 crore.
• Margin at 10 percent versus 10.8 percent.

PI Industries (Q1, YoY)

• Revenue up 9.5 percent to Rs 606 crore.
• Net profit down 18.4 percent to Rs 82 crore.
• Ebitda down 9.4 percent to Rs 118 crore.
• Margin at 19.5 percent versus 23.6 percent.

• Delta Corp: Morgan Stanley France sold 23 lakh shares, or 0.9 percent equity at Rs 266.07 each.
• PVR: Fidelity Investment Trust-Fidelity International Discovery Fund sold 4.03 lakh shares, or 0.9 percent equity at Rs 1172.59 each.

Indiabulls Housing Finance Ltd

• Jasmine Capital Investments Pte Ltd bought 22.7 lakh shares, or 0.5 percent equity at Rs 1374.6 each.
• Orient Global Cinnamon Capital Limited sold 22.7 lakh shares, or 0.5 percent equity at Rs 1374.6 each.

Tejas Networks Ltd

• Eastbridge Capital Master Fund Limited bought 19.17 lakh shares, or 2.1 percent equity at Rs 259.98 each.
• Birla Sun Life MF bought 8 lakh shares, or 0.9 percent equity at Rs 260.25 each.
• Samena Spectrum Co. sold 45 lakh shares, or 4.9 percent equity at Rs 260.27 each.

• TVS Electronics Ltd. placed under the ASM framework.
• Venkys circuit filter revised to 10 percent.
• Music Broadcast buyback worth Rs 57 crore at a maximum Rs 385 per share starts today.

Brokerage Radar

Deutsche Bank on Berger Paints

• Initiated ‘Buy’ with a price target of Rs 375.
• Product differentiation and distribution expansion to drive double-digit volume growth.
• New niche segments a strong medium-term growth driver.
• Expect moderate margin expansion to continue.
• Expect revenue and net profit grow at a compounded annual growth rate of 17 percent and 22 percent respectively over FY18-21.

Deutsche Bank on Kansai Nerolac

• Initiated ‘Buy’ with a price target of Rs 575.
• Fastest-growing paint company and key beneficiary of a likely capex cycle revival.
• Margin expansion to continue led by premiumisation and operating leverage.
• Leveraging parents global technology for new launches.
• Capacity to increase by 50 percent over next three years.
• Expect revenue and net profit to grow at a compounded annual growth rate of 17 percent over FY18-21.

Morgan Stanley on GAIL (India)

• Maintained ‘Overweight’; cut price target to Rs 473 from Rs 511.
• Fundamentals are getting strong.
• Positives: push to lower pollution, clarity on hike in pipeline tariff.
• Weaker U.S. gas prices coupled with higher oil prices to lead to upside risks.
• Cut price target due to lower multiples across its businesses due to higher bond yields in India.

JPMorgan on HCL Tech

• Maintained ‘Overweight’ with a price target of Rs 1,050.
• Risk-reward balance delicately poised.
• Judicious course-correction can shift balance in a more favorable direction.
• Do not see HCL making disruptive moves to improve its positioning in digital.
• Maintaining margins can be difficult in the face of continued growth difficulties.

Morgan Stanley on Tata Global Beverages

• Maintained ‘Underweight’; raised price target to Rs 170 from Rs 150.
• June quarter earnings were in-line with estimates.
• Another quarter of weak operating performance.
• Low earnings visibility remains the key concern.

Citi on HDFC Bank

• Maintained ‘Buy’ with a price target of Rs 2,590.
• Capital raise to boost capital ratios and support growth.
• Accelerated growth to help net interest margins.
• See good lending opportunities across wholesale and SME space as well.

Also Read: The Mutual Fund Show: Don’t Ignore These Warning Signs While Investing

Brokerages On Hero MotoCorp

Citi

• Maintained ‘Buy’ with a price target of Rs 4,250.
• Supportive macro for two wheeler growth in India.
• Hero plans to counter opposition by product action rather than price action.
• Access and cost of finance could be big demand drivers.
• Second hand bike market could see a spurt.

Deutsche Bank

• Maintained ‘Hold’ with a price target of Rs 3,550.
• Hero to continue its strategy of "better features, higher pricing".
• Rapid growth in 125cc segment to help improve overall scooter market-share.
• Remain cautious on mass-market two wheeler companies.
• Expect several headwinds for margins.

Brokerages On Godrej Properties

JPMorgan

• Maintained ‘Neutral’ with a price target of Rs 850.
• Accounting change impacts net earnings.
• Like-to-like financials much better.
• Pre-sales come off partly on higher base.
• Real estate companies to now focus on deliveries rather than hitting revenue recognition thresholds.

Morgan Stanley

• Maintained ‘Equal-weight’; raised price target to Rs 707 from Rs 682.
• Opening net worth lower by Rs 740 crore due to IND AS.
• Management optimistic on pickup and expects consolidation to continue.
• Expect Godrej to continue to deliver on new project acquisitions.
• Expect new launch momentum in the ensuing quarter.

Brokerages On Nestle

UBS

• Maintained ‘Neutral’ with a price target of Rs 10,750.
• June quarter was a strong quarter where profit surpassed estimates and volume were in line.
• New launches continue; management warns about raw material inflation.
• Margins to come under pressure in the near term.
• Strong performance priced in; limited upside.

CLSA

• Maintained ‘Outperform’; raised price target to Rs 11,700 from Rs 10,200.
• June quarter results were ahead of estimates.
• Good growth with strong margin expansion.
• Input costs are inching up but strong pricing power allays margin concerns.
• Believe Nestle is on a good growth trajectory.

Brokerages On Titan

CLSA

• Maintained ‘Outperform’ with a price target of Rs 1,050.
• June quarter results ahead of estimates; Massive margin gains in watches.
• Jewellery: Higher Ebit, but weaker revenues.
• Management sounded positive and maintained its guidance for above 25 percent jewellery growth.
• Sustained pick-up in growth is critical for stock-price performance.

Morgan Stanley

• Maintained ‘Overweight’ with a price target of Rs 1,080.
• June quarter reported in line earnings.
• Key positive for the quarter is the watch business margin.
• Key disappointment during the quarter was the jewellery business margin.

• Nifty August Futures closed trading at 11,395.7, premium of 34.9 points versus 37 points.
• August series-Nifty Open Interest up 3 percent and Bank Nifty Open Interest up 15 percent.
• India VIX ended at 12, down 3.8 percent.
• Maximum Open Interest for August series at 11,500 Call, Open Interest at 31.4 lakh, Open Interest down 12 percent.
• Maximum Open Interest for August series at 11,000 Put Open Interest at 49.5 lakh, Open Interest up 7 percent.

F&O Ban

• In Ban: Adani Power, Jet Airways
• New In Ban: Jet Airways
• Out Of Ban: None

Put Call Ratio

• Nifty PCR at 1.72 versus 1.64.
• Nifty Bank PCR at 1.34 versus 0.86.

The rupee may benefit from China’s central bank's measures late Friday to support the yuan.

The Indian currency will probably advance today.

However, the big uncertainties for both the currency and government bonds remain unchanged. The ongoing U.S.-China trade dispute continued to boil and Brent oil remained in the vicinity of $74 a barrel.

U.S. President Donald Trump bragged that he was winning and China losing. China responded by saying that the country is prepared for a protracted trade war with the U.S.

India, in the meantime, deferred counter tariffs on some US imports to Sept. 18.

The worst may be over for India’s much-battered bond market. At least that's what Standard Chartered and Nomura seem to think.

The lenders are among investors who are adding to their Indian debt holdings, betting that the central bank will stay on hold for the rest of the year after raising interest rates last week for the second time since June.

A quick look at corporate insider trades reported last Friday.
Read: https://t.co/AnzlaLPbYW pic.twitter.com/RsWXvWcwbh

— BloombergQuint (@BloombergQuint) August 6, 2018

Shares of the energy equipment maker fell as much as 7.6 percent in today's trade after the company swung to loss in June quarter.

Key earnings highlights (Q1, YoY):

• Revenue down 50.5 percent to Rs 1,277.5 crore.
• Ebitda down 83.8 percent to Rs 77 crore.
• Net loss of Rs 572.8 crore versus Rs 49 crore profit.
• Forex gain of Rs 253.6 crore versus Rs 42.4 crore.

Shares of Reliance Nippon Life Asset Management Ltd. is expected to reach Rs 315, a potential update of 17.3 percent from the last regular trade.

That's the word coming from international brokerage and research firm Nomura. The stock rose as much as 3.9 percent to Rs 278.95 in today's trade.

Here's what Nomura had to say about Reliance Nippon:

• Initiated Buy with a price target of Rs 315.
• Growth opportunity too large to worry over cyclicality.
• Core profitability to improve despite yield pressure.
• Distribution strength driving market share gains in retail.
• Valuations factoring in cyclicality risks and regulatory pressure now.

Shares of the real estate developer snapped two-day decline and rose as much as 10.1 percent, the most in nearly a month to Rs 114.90.

The company's Goa arm received bookings for more than 800 units for residential project, according to its stock exchange notification.

Trading volume was 10.1 times its 30-day average, Bloomberg data showed. The stock fell 34.6 percent so far this year compared to an 11.9 percent advance in the Sensex.

HDFC Asset Management Company Ltd. listed at a premium of 58 percent at Rs 1,739 per share on the Bombay Stock Exchange, compared to its issue price of Rs 1,100. The stock rose as much as 65.5 percent to Rs 1,820 thereafter.

The country’s second-largest asset manager’s Rs 2,800-crore initial public offering was subscribed 83 times on its final day of bidding on July 27.

Key highlights from the conversation:

Jagannarayan Padmanabhan, Director At CRISIL Infrastructure Advisory

• Average ticket price fell to Rs 3,900 from Rs 4,200 last year.
• Inappropriate ticket pricing challenge for the aviation industry.

Jitender Bhargava, former Air India director

• Federation of Indian airlines should interfere.
• Airlines need to behave maturely and avoid the competition.
• In a race to gain market share, airlines are selling tickets at a lower price.
• ATF price helped Jet Airways clock marginal improvement over the last few years.

• The Indian equity benchmarks traded off day's high.
• The S&P BSE Sensex Index traded 0.3 percent at 37,661.69 as of 10:15 a.m. and the NSE Nifty 50 Index traded at 11,384.35, up 0.2 percent.
• Over 1,051 stocks advanced and 588 shares declined on the national stock exchange.

Shares of Adani Ports And Special Economic Zone Ltd. fluctuated between gains and losses to trade at Rs 401.95 apiece ahead of its quarterly results announcement.

Adani Ports traded at 22 times trailing 12-month earnings per share and 21 times its estimates for the coming year, Bloomberg data showed.

Shares of the fine chemicals and polymers maker fell as much as 6.9 percent, the most since Feb. 05, to Rs 772.25 after the company's profit declined during April-June period.

Key earnings highlights (Q1, YoY):

• Revenue up 9.5 percent to Rs 606 crore.
• Net profit down 18.4 percent to Rs 82 crore.
• Ebitda down 9.4 percent to Rs 118 crore.
• Margin at 19.5 percent versus 23.6 percent.

Key highlights from the interaction:

• Overall volume growth was at 17 percent in June quarter.
• Nippon joint venture is doing well.
• Will be passing on GST rate cut benefits completely to the customers.
• Expect industry to go through price hikes in the current quarter.
• See buoyant growth during festive season.
• Planning to launch an interior product.
• See volume growth with GST rate cuts coming in.

Carborundum Universal Ltd. expects improvement in its margins in the next two quarters, its Managing Director K Srinivasan told BloombergQuint in an interaction.

Key highlights from the conversation:

• Expect growth to continue for ceramics segment.
• Electro-mineral clocked better margin than expected, passed cost increase.
• Have not seen GST benefits coming in yet for abrasives.
• Will be launching graphene-based product going ahead.

Key highlights from the conversation:

• Significant increase in the prices of certain intermediates purchased from China.
• Change in the delivery of certain products from our CMO partner.
• Exchange rate fluctuation also led to lower profitability.
• Mitigated high raw material prices by producing in house.
• Complete in house production from next quarter.
• June quarter result was a one off.
• Confident of clocking 10 percent revenue growth in anti-retroviral (ARV) segment.
• Don't expect significant de-growth in HEP-C segment ahead.
• See significant growth from synthesis division.
• Oncological API sales doing good.
• Formulations segment will see significant revenue growth from April 2019.
• Capex of Rs 275-300 crore for 2018-19.
• Completing the validation of second line APIs in ARVs.
• Adding lot of products in CMO from European partner.
• Adding two new products in Oncology.
• Expect to file six ANDAs in 2018-19 in 'Finished dose forms'.
• Hope to launch two formulations in U.S. in the next quarter.

Key highlights from Shvets interaction on BloombergQuint:

• Domestic liquidity is driving Indian markets.
• Good companies in India are very expensive.
• Trapped liquidity will make India less volatile.
• India consumes too much, invests too little.
• India has a lot of trapped liquidity.
• Emerging-markets likely to remain under pressure over the long-term.
• Liquidity crunch, bond volatility, China some key concerns for ems.
• India will continue to do well over next three-to-four months.
• Dollar will stabilise over next three-to-four months.
• India has performed well compared to EM peers.
• Investments will rise once more structural reforms take place.
• India has not done enough supply side reforms.
• India's twin deficits have crept up over the last 18 months.
• EMs like India are seeing inflation growing faster than economic growth.
• Bank of Japan reluctant to participate in rate tightening.
• 4 percent is the right interest rate for us if it was an isolated economy.
• Question is whether central banks know what they are doing.

VIP Industries expects to exceed its earlier revenue forecast for the current financial year, its Chairman Dilip G Piramal told BloombergQuint in an interaction.

Key highlights from the conversation:

• All four flagship brands did well.
• The only disappointment would be our export market in June quarter.
• Don't expect a further decline in margins.
• Did not hike prices as we were expecting volume growth.
• Could take price hikes in October.
• Market share should be close to 52-53 percent.
• Expect to exceed earlier 2018-19 revenue guidance.