Indian indices were over 0.52% higher on Monday. All eyes will be on the inflation figures due later today. Asian stocks started the week higher after their US peers chalked fresh records and Treasury yields stabilized after jumping Friday.
RIL, ICICI Bank drive gains
Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking on crude oil
“WTI crude prices rose over 2.2% in the week gone by as lack of clarity on Opec’s production stance in the months ahead weighed on the market sentiments. The oil exporting group failed to reach an agreement to raise supply in order to meet rising global demand after Saudi Arabia, the de facto leader of the group, and UAE were unable to strike a deal.
Also, worries over tighter pandemic led curbs in many regions of Asia, Australia and Europe following the increase in the Delta variant cases further pressured Crude Oil prices. The losses for Crude were limited as US Crude inventory plunged over 6.9 million barrels in the earlier week surpassing the market expectation of a 4-million-barrel decline, data as per the Energy Information Administration.”
Amarjeet Maurya – AVP – Mid Caps, Angel Broking on Maruti Suzuki price hike
“Maruti Suzuki India Limited announced a price change for Swift and all CNG variants owing to increase in various input costs. Increase in Ex Showroom Prices (Delhi) is up to ₹15,000 on the above models. The new prices are effective from today, i.e., 12 July. We believe that this is a positive development for the company and it will keep operating margin stable. We are positive on company.”
Paytm parent gets shareholders’ nod for IPO; Vijay Shekhar Sharma to delist as promoter
Paytm’s parent company One97 Communications has received shareholders’ approval to raise ₹12,000 crore via a fresh issue of shares, clearing the way for its IPO, moneycontrol.com reported. The issue will also have a secondary, where existing shareholders will sell their shares, which brings the total amount to ₹16,600 crore. The company got the shareholders’ nod for Paytm founder and CEO Vijay Shekhar Sharma to be declassified as promoter, since he he does not own the minimum 20% needed in the firm. Sharma will continue to be the chairman, managing director and chief executive officer of the company.
Restructured book of non-bank financiers to double in March 2022, says Icra
The restructured book of non-bank financial companies (NBFCs) and housing finance companies (HFCs) is expected to double to 3.1-3.3% of their assets in March 2022 from 1.6% in March 2021, rating agency Icra said. (Read here)
Adani group hits 100 bn m-cap, a first for a first generation Indian company: Chairman
In the first week of financial year (FY) 2021-2022, Adani Group crossed $100 billion in market capitalisation, said chairman Gautam Adani on Monday.
Virtually addressing the firm’s shareholders at Annual General Meeting 2021, he noted that this ‘milestone’ is a first for a first-generation Indian company.
“The performance of our listed entities propelled our portfolio to cross 100 billion dollars in market capitalisation in the very first week of this new financial year. This valuation milestone is a first for a first-generation Indian company,” he said. (Read here)
SoftBank eyeing stake in Apollo HealthCo: report
SoftbBank is in talks with Apollo Hospitals Enterprise for stake in Apollo HealthCo, Hindu Business Line reported citing people familiar with the matter. Apollo is eyeing a 25% stake sale in the new entity Apollo HealthCo which houses its offline pharmacy business and Apollo 24/7 among other businesses.
Indiabulls RE, Oberoi Realty top gainers
Bank index gains
Yash Gupta, equity research associate, Angel Broking
“Today the S&P BSE Realty index is up by 3.58% and is up by more than 10% in July. Real-estate sector broke its 10-year high of 2,895 in March 2011. We have seen a good turnaround from real-estate sectors after the hit from the covid-19 pandemic in 2020. Some of the stocks like Oberoi realty, Brigade, Godrej Property have reported better than expected pre-sales numbers in 2nd half of 2021 on back of pent-up demand in the sector. We expect that Q1FY22 will not be as good as the last quarter due to the state wise lockdown, but the long-term story of the real-estate market has been maintained. Real-estate has seen a down cycle of more than five years due to RERA implementation, demonetization, credit issues and then the pandemic. All these issues hit the unorganized market adversely and day by day, the unorganized players are losing market share in new launch property. Along with this, change in customer preference for ready to move property and brand loyalty are very favorable for the listed real-estate players. We expect the real-estate sector to outperform and this may be a start of a new upcycle in the real-estate sector after consolidation in the last 10 years. We have a buy call on Godrej Property with the target price of ₹1,700.”
Gold prices today fall for second time in 3 days, silver rates drop
Gold prices in India fell for the second time in three days amid weak global cues. On MCX, gold futures were down 0.46% to ₹47,702 per 10 gram while silver rates declined 0.4% to ₹69,014. Despite the recent decline, gold rates in India remain about ₹1,200 per gram higher so far this month. (Read here)
Ola Electric signs $100 million long-term loan with Bank of Baroda
Ola Electric Mobility Pvt Ltd on Monday said it has signed a long-term debt finance agreement with Bank of Baroda to raise $100 million for the funding and financial closure of Phase 1 of its electric two-wheeler factory in Hosur, Tamil Nadu. (Read here)
Zydus Cadila’s Covid-19 vaccine approval likely in next few days: Report
Gujarat-based pharmaceutical major Zydus Cadila’s covid-19 vaccine may not be available soon as emergency approval from the country’s top drug regulator is likely to take a few more days, according to ANI sources. (Read here)
Equitas, Ujjivan shares rally on hopes of RBI nod for merger with SFBs
Shares of Equitas Holdings Ltd and Ujjivan Financial Services Ltd rallied 17% and 20% respectively on Monday in early trading deals on the National Stock Exchange. Reserve Bank of India (RBI) has permitted Small Finance Banks (SFBs) to apply for a reverse merger process with their holding companies upon five years after commencement of business. This development is positive for both the above-mentioned companies, which are the promoters of Equitas Small Financial Bank Ltd and Ujjivan Small Finance Bank Ltd, respectively.
Sovereign gold bonds open for subscription
The fourth tranche of sovereign gold bond of this fiscal opened for subscription today. The issue price has been fixed at ₹4,807 per gram of gold while those who apply and invest online get a discount of ₹50 per gram. Sovereign Gold Bond Scheme 2021-22 – Series IV or the fourth tranche closes for subscription on Friday (July 16th). Gold bonds offer an annual interest rate of 2.50% to investors. (Read here)
Essar Shipping deploys 2 handysize vessels for rice exports to Bangladesh
Essar Shipping Ltd has deployed two of its handysize vessels Tvisha and Tuhina weighing 13,000 DWT for exports of rice from India to Bangladesh under the recent bilateral trade agreement. Bangladesh will buy 150,000 tonnes of rice from India, under the agreement. The company’s stock was trading at ₹11.76 apiece, up 4.26% at 11:57 am.
Flipkart to raise funding at $40 billion valuation
Flipkart has completed a fundraising round valuing the Indian online retailer at about $40 billion, with main owner Walmart Inc. joining investors including SoftBank Group Corp. in injecting almost $4 billion, people familiar with the matter said. (Read here)
Top gainers at this hour
Swiggy elevates Phani Kishan to co-founder role
Swiggy has elevated Phani Kishan, vice president Strategy & Investments, to co-founder status, the food delivery startup said in an update on its website.
Amazon restores service after global outage
Amazon.com Inc said its online stores had returned to normal services after a global outage disrupted shopping on its country sites. According to outage monitoring website Downdetector, services were disrupted for nearly two hours and at the peak of the disruption, more than 38,000 user reports indicated issues with Amazon’s online stores. They occurred on Sunday evening in the United States and Monday morning for much of the rest of the world. “Some customers may have temporarily experienced issues while shopping. We have resolved the issue, and everything is now running smoothly,” an Amazon spokesperson said. The spokesperson declined to comment on the reason for the outage.
Cyient to digitize land records for HM Land Registry in UK
Her Majesty’s Land Registry, a non ministerial department of the UK government, has selected Cyient to support its Local Land Charges (LLC) Programme which will involve digitize and migrate millions of separately held local and charge records from local authorities into a centralized digital register.
In a first in three months, diesel prices cut by OMCs
Diesel prices were cut by 16 paise per litre on Monday for the first time in three months in the backdrop of transportation fuel prices being on an upward trajectory. However, state run oil marketing companies (OMCs) increased petrol prices by 28 paise per litre on Monday. Petrol and diesel were selling at ₹101.19 per litre and ₹89.72 per litre respectively in Delhi at Indian Oil Corporation Ltd’ outlets. Petrol prices have crossed ₹100 mark in all major metros.
Cabinet may have cleared plans for LIC IPO: report
The initial public offer (IPO) plan for Life Insurance Corporation (LIC) may have been cleared by the Cabinet Committee for Economic Affairs (CCEA), CNBC-TV18 reported, citing people with knowledge of the matter.
Angel Broking maintains ‘buy’ on Federal Bank
“Federal Bank is one of India’s largest old generation private sector banks with total assets of ₹1.9 lakh crore with deposits of ₹1.56 lakh cr. and a loan book of ₹1.2 lakh cr in F21. NPAs have remained steady for the bank over the past few years with GNPA for Q3FY21 at 3.38% while NNPA ratio stood at 1.14%. PCR at the end of Q3FY21 stood at ~67% which we believe is adequate. Restructuring book is expected to be at ₹1,500-1,600 crore out of which ₹1,067 crore has already been restructured. This is against earlier expectations of total restructuring of ₹3,000-3,500 crore.”
Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking on gold
“Spot gold ended the week with gains of 0.9% while MCX Gold prices rose over 1.3% as the benchmark US Treasury Yield retreated during the week, lowering the opportunity cost of holding the bullion metal. The minutes of the US Federal Reserve policy meet last month indicated towards a sooner than expected tapering of the asset purchase program. Despite mounting inflation worries, a relatively high unemployment figures still remained a major concern for the Fed. However, no further hints on tightening of the monetary policy undermined the US Dollar and treasury yield. Soaring number of Delta variant covid-19 cases ignited worries over extension of lockdown in major economies and derailing the global recovery which further supported the safe haven asset, gold.”
Equitas SFB gains
Equitas SFB’s stock was trading at ₹73.20 apiece, up 12.44% at 10:31 am. Equitas Holding, the promoter of Equitas Small Finance Bank said the Reserve Bank of India has allowed it to file for a scheme of amalgamation of the promoter entity with the bank.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments on Nifty trajectory
“The Nifty has bounced from Friday’s low and is once again trading around the mid point of the range which is between 15,400-15,900. If we can scale higher and get past 15,900, we should be able to achieve 16,100. Until then trading is going to be lackluster with tepid volumes.”
EPFO likely to invest part of its corpus in InvITs
Retirement fund manager Employees’ Provident Fund Organisation (EPFO) may start investing a portion of its annual deposits in infrastructure investment trusts (InvITs). The move could not only help India boost investments in infrastructure but also expand the scope of EPFO’s investment basket beyond bonds, government securities, and exchange-traded funds (ETFs), two government officials said, requesting anonymity. (Read here)
Amul wins copyright violation case in Canada
Amul has been awarded damages worth Canadian $ 32,733 (approximately ₹19.5 lakh) by the Federal Court of Canada in a copyright violation case. Kaira District Co-operative Milk Producers’ Union Ltd and and Gujarat Cooperative Milk Marketing Federation Ltd had alleged breach of trademark and copyright in Canada by Amul Canada. The page mentioned Mohit Rana, Akash Ghosh, Chandu Das, and Patel Patel as its employees. “Kaira is the registered owner of Canadian Trademark Registration No. TMA877339, registered on May 7, 2014, for the trademark AMUL, which has been used in Canada since June 30, 2020, in association with the goods ‘milk products’,” the court said in its judgment. This is the first case of its kind brought by Amul against any party on foreign soil, according to media reports.
Large banks fight for a slice of their customers’ shopping pie
Banks are sprucing up their mobile apps with virtual marketplaces of discounted products and services, in order to retain them and in the process gain insights into their shopping preferences. Banks such as Kotak Mahindra Bank, ICICI Bank, Axis Bank and State Bank of India (SBI) already offer such features, some of them providing them through internet banking as well.
Maruti Swift, CNG variants become ₹15,000 costlier
Maruti Suzuki India Ltd has hiked prices of Swift and CNG variants effective 12 July owing to increase in various input costs, it said in a regulatory filing. Increase in ex showroom prices in Delhi is up to ₹15,000. “The price increase in other models is planned shortly and shall be intimated accordingly,” the company said. (Read here)
India reports 37,154 news covid cases
India reports 37,154 new #COVID19 cases, 39,649 recoveries, and 724 deaths in the last 24 hours, as per Health Ministry
Total cases: 3,08,74,376
Total recoveries: 3,00,14,713
Active cases: 4,50,899
Death toll: 4,08,764
Total vaccinated:37,73,52,501 (12,35,287 in last 24 hrs) pic.twitter.com/33XCllf6yV
— ANI (@ANI) July 12, 2021
DMart’s Q1FY22 gross margin at multi-year lows disappoints; stock valuations rich
Avenue Supermarts Ltd, which runs the DMart chain of stores, announced its June quarter (Q1FY22) results on Saturday. The quarter’s gross margins are a sore point, contracting by 129 basis points year-on-year to 12.4%. One basis point is one-hundredth of a percentage point. “DMart surprised negatively with a 22-quarter low gross margin,” said analysts from Jefferies India Pvt. Ltd in a report on 10 July.
Benchmark Indian equity indices opened higher on Monday. The Sensex opened at 52,634.33, up 248.14 points, or 0.47%, while the Nifty was at 15,766.80, up 77. points or 0.49%. Broader indices witnessed a strong opening on Monday.
Amazon services down for multiple users – Downdetector
Amazon.com Inc’s platforms, including its online store site and Amazon Web Services, were down for multiple users late Sunday, according to outage monitoring website Downdetector. More than 37,000 user reports had indicated issues with Amazon’s online store site, while about 280 users reported problems with the Amazon Web Services, according to Downdetector. The issue affecting the sites was not immediately clear. Amazon did not immediately respond to a Reuters request for comment. (Reuters)
Market pre opening
The Sensex was at 52,634.33, up 248.14 points, or 0.47%, while the Nifty was at 15,766.80, up 77.00 points, or 0.49%.
Hatsun Agro announces operationalisation of new facility
The company will start commercial production of milk at its Uthiyur Plant in Tamil Nadu, it said in its regulatory filing. The plant has a milk handling capacity of 3.5 LLPD.
India wants rich countries to pay more for green energy shift
India can’t prioritize eliminating greenhouse gas emissions without sufficient financing from richer nations to help offset the high cost of transitioning to clean energy, according to a senior government official. In laying out its position ahead of key global climate talks later this year, the top bureaucrat in India’s environment ministry also said the country doesn’t plan to tighten its emissions goals unless more money is promised from developed economies under the United Nations-sponsored climate change agreement. (Bloomberg)
Tanla Platforms plans share buyback
Cloud communications company Tanla Platforms is planning a share buyback. The company’s board will meet 22 July to consider the proposal, it said in a regulatory filing.
In a first, state-owned LIC may invest in Zomato’s public offer
In a rare move, state-owned Life Insurance Corp. of India (LIC) is weighing a bid for Zomato’s shares in the online food delivery platform’s initial public offering this week, two people directly aware of the matter said. (Read here)
Granules India denies reports of company being sold to PE investors
Pharmaceutical company Granules India on Monday said that the reports of the company being sold to some PE (private equity) investors that were floating in social media are ‘false and malicious’. The management remains committed to the growth of the company, it said. (Read here)
Centre seeks legal opinion to let BPCL sell subsidised LPG after stake sale
A two-decade-old LPG supply order restricting supply of domestically produced LPG to only state-owned oil companies has stymied plans to allow Bharat Petroleum Corporation Ltd (BPCL) to continue selling subsidised cooking gas (LPG) after its privatisation. (Read here)
Markets are likely to be steady on Monday following global peers, while trends in SGX Nifty suggest a positive opening of Indian benchmark indices. On Friday, the BSE Sensex ended at 52,386.1, down 182.75 points or 0.35%. The Nifty closed at 15,689.80, down 38.10 points or 0.24%. (Read here)
Stocks to Watch
Avenue Supermarts, IDBI Bank, Equitas, Ujjivan SFB, among other stocks may be in the news today. (Read here)
Microsoft is said to be buying cybersecurity company RiskIQ
Microsoft Corp. has agreed to acquire RiskIQ, a security software maker, as the tech giant tries to expand its products and better protect customers amid a rising tide of global cyberattacks, according to people familiar with the matter.
The deal will be announced as soon as the next few days, said the people, who asked not to be identified speaking about an acquisition that isn’t yet public. Microsoft will pay more than $500 million in cash for the company, one of the people said. San Francisco-based RiskIQ makes cloud software for detecting security threats, helping clients understand where and how they can be attacked on complex webs of corporate networks and devices. Its customers include Facebook Inc., BMW AG, American Express Co. and the US Postal Service, according to the company’s web site.
Fuel price check: Petrol at ₹101 in Delhi
Petrol price in Mumbai at ₹107.20/litre today, diesel at ₹97.29. Petrol price in Delhi is at ₹101.19/litre whereas diesel price is at ₹89.72/litre
FPIs pull out ₹2,249 cr from Indian equities in Jul so far
After a month of net inflows, foreign portfolio investors (FPIs) pulled out ₹2,249 crore from the Indian equities segment in the first seven trading sessions of July. This could be largely attributed to profit booking by FPIs with markets trading near all-time highs and investors choosing to stay on the sidelines, said Morningstar India Associate Director (Manager Research) Himanshu Srivastava.
V K Vijayakumar, chief investment strategist at Geojit Financial Services, said it was important to appreciate the fact they are not selling big. “This is because even though valuations are stretched, there are no signs of a major crash in markets. The sharp dip in the US 10-year bond yield to around 1.3% has again tilted the market in favour of equity,” he said. (PTI)
Asian stocks rise
Asian stocks started the week higher after their U.S. peers chalked fresh records and Treasury yields stabilized after jumping Friday.
Shares in Japan outperformed and Hong Kong opened higher. China rose after the central bank cut the amount of cash most banks must hold in reserve to buttress a slowing economic expansion. Australia saw a more modest advance amid a prolonged lockdown in the largest city, Sydney. U.S. contracts fluctuated. The S&P 500 finished last week at all-time highs as investors continued to bet that global growth remains on track despite new Covid-19 variants.
Treasuries snapped an eight-session rally Friday that saw 10-year yields tumble as low as 1.25% in a volatile week. They will remain in focus amid new supply coming to the market this week, as well as key U.S. inflation data and Federal Reserve Chair Jerome Powell’s semi-annual appearance before Congress.
S&P 500 futures were little changed as of 10:31 a.m. in Tokyo. S&P 500 rose 1.1%
Nasdaq 100 futures were little changed. Nasdaq 100 rose 0.7%
Topix index climbed 2.2%
Australia’s S&P/ASX 200 Index rose 0.8%
Kospi index gained 0.9%
Hang Seng Index gained 1.1%
Shanghai Composite Index added 0.3%
Euro Stoxx 50 futures were little changed
SGX Nifty was up 0.46%
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