Expect market to open on positive note on account global cues. US market gained half percent after impressive job data announcement and good quarterly results. Among the Asian markets like Hong Kong and Japan Index gained 0.7% and 0.2% respectively. The 10-year US Treasury yield back to 2.95 percent on Friday after a recent high of above 3%. European market gained on Friday nearly half to one percent.
China markets declined marginally after the news that the Chinese government may increase duty of US products worth $60bn if US Government impose additional duty on Chinese product of $200/bn.
Positive factor that the impressive quarterly results reported by most of the corporates and IMD expects 95% of average rainfall . Another good point that the India service PMI expanded 21-month high. It means India economy is back on track. However, traders keep in mind that the trade war tensions, higher oil price and Global market markets volatility may negative impact our market.
Major event to be watch as SAIL reported good quarterly results, Divi’s Lab reported poor Q1 result. Britannia, Arvind, Adani Port, Ujjivan will be announce Q1 result today.
HDFC AMC will be listing today. It has been oversubscribed 83 times at a price of Rs1100 a share – Watch on HDFC.
TCS announced share buy dats on 18th August worth Rs160bn at Rs2100 a share – Watch on TCS TODAY
ICRA Board meeting of 9th August to consider share buy-back – Watch on ICRA today.
Tech Mahindra likely to add 4000 new jobs in the next three years – Positive for Tech Mahindra.
Normal monsoon may positive for consumption related stocks like FMCG (Hindustan Unilever, Godrej Consumer, Marico, Dabur, Emami) and FMCG (Bajaj Auto, Maruti).
Media news that the overseas firm likely to buy IDFC Mutual Fund business nearly Rs50bn – 60bn – Positive for IDFC.
Watch on Adani Group stocks – Company likely to get 11 city gas distribution license.
Media news that the government may increase import duty on consumer durable products nearly 35% like Washing Machine, AC, TV, Refrigerator. It may positive on Voltas, Whirpool, Blue Star. India imports nearly $2bn consumer products.
Government may ban over 300 fixed-dose combination (FDC) medicines, accepting recommendation of apex drug advisory body – It may negative on Abbott Labs, Cipla, Lupin, Dr Reddy, Cadila if ban over 300 FDC medicines.
India expected major benefit in the defiance sectors after the media news that the India to get strategic trade Authorization -1 status from US. India is the third Asian counters to get this status after Japan and South Korea. Expects Indian defiance stocks like BEL, BEML, Hindustan Aeronetacis (HAL) may positive.
Watch on PSU banks – Government and PSU Banks efforts of NPA recovery by the various process for recovery NPA likely to be positive for PSU banks in the long term – Expects positive for SBI, BoB and others PSU Banks.
Laurus Lab’s reported reported Q1 revenue Rs5.39bn (up 13% YoY). Ebitda declined by 16.5% yoy to Rs806mn and and PAT declined by 57.4% to Rs166mn.
BSE India’s Q1FY19 revenue from operations increased by ~5.9% yoy to Rs1.17bn from Rs110.47cr in Q1FY18. EBITDA (including investment income) declined by 8.2% yoy to Rs570mn from Rs618mn in Q1FY18, while EBITDA margin declined to 36.4% in Q1FY19 from 40.8% in Q1FY18. Net profit during the quarter increased by 3.6% yoy to Rs515mn vs. Rs497mn in Q1FY18. Highly beaten down stock – BUY.
Brokerage radar – Titan – CLSA Outperformal 1150, Nestle CLSA TGT 11700, GAIL Morgan cut TGT 473
United Spirits to sell shares in US unit liquidity inc – We are positive on United Spirits
Watch on Delta – Goa Chief Minister Manohar Parrikar made a statement on the floor of the legislative assembly today announcing that offshore casinos in the state will be shifted to a designated gaming zone within a period of four years. Parrikar also stated that licenses will be given for a period of 10-15 years and only tourists will be allowed to visit casinos. He further stated that a Gaming Commissioner to regulate casinos would be appointed to regulate and oversee casino activities in the state – Positive for Delta
Titan Q1 reported good quarterly result and we have a buy rating on the stock. Company reported Q1 net profit Rs3.31bn (up 38% YoY) – Expectation Rs2.99bn, EBITDA at Rs4.8bn, (up 32% YoY) – expectation Rs4.3bn. Margins expanded 120 bps YoY to 10.9% and sales Rs44.5bn (up 12% YoY) – Expectation Rs42.6bn
KEC International reported inline with expected Q1 result. Strong order book will be positive for the company. Company reported Q1 net profit Rs868.4mn – Bloomberg expectation Rs868.4mn and sales Rs21bn -Bloomberg expectation Rs21bn
Nestle Q1 net profit Rs3.95bn – expectation Rs3.85bn, other income Rs602.3mn, dividend Rs20 a share and sales Rs27bn – expectation Rs27bn
VIP Industries reported strong number. Stock gained nearly 8% after announced Q1 result. While rich valuation is a concern (not our coverage). Company reported Q1 net profit Rs633.5mn (up 55% YoY) and sales Rs5.18bn (up 47% YoY)
IMD expect monsoon Rain 95% of average while Skymet expects 92% average. It is expected that the 90-98% average rain fall. It may positive for the market. FMCG, Auto, Banking and NBFC stock may positive because co-related with rural economy.
Berger Paints reported inline with expected Q1 result (not our coverage). Company announced Q1 net profit Rs1.35bn (up 19.5% YoY)while Bloomberg expectation Rs1.31bn, strong EBITA at Rs2.27bn, EBITDA margin 15.3% VS 14.8% (YoY) and sales Rs14.8bn (up 18.9% YoY) while Bloomberg expectation Rs14.2bn
Watch on PSU Banks – PNB will be announce Q1 result. Asset quality and commentary by PNB will be important for the PSU Bank. SBI will be announce Q1 result on 10th August
Motherson Sumi says acquisitions of Reydel automotive acquisition completed – Positive for Motherson Sumi
Petronet plans to set up LNG terminal in Myanmar – Positive for Petrong LNG, Strong fundamental and attractive valuation.
Taj GVK Q1 net profit Rs39.2mn vs Rs1.4mn and income Rs726.2mn (up 22% YoY) – Good Q1 result
Watch on HDFC today. Its’ s subsidiary HDFC Asset Management will be listing today. HDFC Asset IPO price set at Rs1100 a share and oversubscribed by 83 times
Tech Mahindra, Nucleus visions to partner for block chain projects – Positive for Tech Mahindra, Attractive valuation – Buy
Carborundum Univeral reported good Q1 result (Not our coverage). Company reported Q1 net profit Rs628.6mn (up 56.3% YoY) – Bloomberg expectation Rs525.5mn and sales Rs6.34bn (up 22.1% YoY) – Bloomnberg expectation Rs6.06bn
Cipla Uganda issue 657mn shares in IPO – Positive
Rajesh Exports wins orders worth Rs8.92bn – Positive
SJVN Q1 net profit Rs2.94bn (down 35% YoY) and income Rs6.14bn (down 12% YoY) – Poor result – Avoid
Rico Auto Q1 net profit Rs152.4mn (up 8.5%) – Avoid
Ex-Dividends – Bayer Crops, Cochin Shipyard, Godrej Consumer, KRBL, Monsanto India, Oracle Financial, Sanofi India
Board Meetings – Adani Ports, Adani Power, Arvind Feeds, Britannia, Caplin Point, Dena Bank, FSL, Graphite India, Max Financial, Monsanto India, Nava Bharat Venture, Omaxe Ltd, Parag Milk, PNB, Syndicate Bank, Ujjivan Financial and Vinati Organics
AGM – Adani Ports, Adani Power, Britannia, Eveready, FSL, Graphite Industries, JSW Energy, Nava Bharat Venture and P I Industries
Results today – Adani Ports, Adani Power, Arvind Feeds, Britannia, Caplin Point, Dena Bank, FSL, Graphite India, Max Financial, Monsanto India, Nava Bharat Venture, Omaxe Ltd, Parag Milk, PNB, Syndicate Bank, Ujjivan Financial and Vinati Organics.
For any assistance feel free to call Raunaq Singh– 9830774198