All You Need To Know Going Into Trade On July 12

Asian stocks started the week higher after their U.S. peers chalked fresh records Friday in a broad-based rebound. Treasury yields were steady after jumping Friday.

Shares in Japan outperformed, while South Korea also rose. Australia saw a more modest advance amid a prolonged lockdown in the largest city, Sydney. U.S. contracts were little changed.

The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, rose 0.52% at 15,809 as of 6:50 a.m.

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. China’s central bank cut the amount of cash most banks must hold in

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.

The euro was little changed after European Central Bank President Christine Lagarde told investors to prepare for new guidance on monetary stimulus in 10 days. Oil was steady after its first weekly loss in seven amid an OPEC+ dispute over a production increase.

Data To Watch

• 5:30pm: India May Industrial production YoY; estimate 32.0%, prior 134.4%

• 5:30pm: India May Consumer Price Inflation YoY; estimate 6.59%, prior 6.30%

Earnings Post Market Hours

Delta Corp (Q1FY22, Consolidated, QoQ)

• Revenue down 64% to Rs 75.8 crore vs Rs 211 crore

• Reported a loss of Rs 28.93 crore vs profit of Rs 57.77 croreEarnings per share down 150% to Rs -1.08 vs Rs 2.15

• Delta Corp said it believes that the pandemic-hit financial results for the period ended 30th June, 2021 may not have any material adverse impact on the net worth of the group

Avenue Supermarts (Q1FY22, Consolidated, QoQ)

• Revenue down 31% at Rs 5031.7 crore vs Rs 7303.1 crore (Bloomberg estimate: Rs 5032.7 crore)

• Net profit down 74% at Rs 115.13 crore vs Rs 434.95 crore (Bloomberg estimate: Rs 159.7 crore)

• Ebitda down 64% at Rs 221.21 crore vs Rs 616.61 crore (Bloomberg estimate: Rs 277 crore)

• Margin at 4.4% vs 8.4% (Bloomberg estimate: 5.5%)

• Commenting on the performance of the company, Neville Noronha, CEO & Managing Director said Q1FY22 saw a much stronger second wave of Covid-19 restrictions. "We lost significantly more days or had higher restriction on number of hours of store operations compared to the same period last year."

Bhansali Engineering Polymers (Q1FY22, Consolidated, QoQ)

• Revenue down 50% at Rs 232 crore vs Rs 473 crore

• Net profit down 52% at Rs 77.3 crore vs Rs 163.4 crore

Stocks To Watch

• Maruti Suzuki India: Launched Maruti Suzuki Smart Finance, a digital end-to-end online car financing platform.

• Nocil: The company gave a brief of its performance in its annual report. The lockdowns resulted in sub-optimal operations during the first quarter of the year under review with operating rates falling below 50% than the preceding quarter. The company recorded a turnover of Rs 939 crore, a growth of over 9% over the last year.

• Quess Corp: Increased its stake in Stellarslog Technovation from 16.12% to 33.33% by investing Rs 3.20 crore

• Anjani Portland Cement: Purchased additional shares in Bhavya Cements, increasing shareholding in the company to 89.15%.

• Canara Bank: Launched its annual report and said the outlook for financial year 2021-22 is positive with expectation of economic recovery gaining momentum, particularly in the second half of the year, with broad based normalization of economic activity and continued policy support from the government and the RBI.

• Wockhardt: Ended the year with profit after tax of Rs 686 crore as compared to a loss of Rs 69 crore in the previous year. Also reduced the net debt to equity ratio to 0.54 from 0.96

• Federal Bank: Re-appointed Shyam Srinivasan as managing director & CEO of the bank for three years with effect from September 23, 2021.

• Hero MotoCorp: Ended the financial year with net profit of Rs 2,964 crore, down nearly 18.5%. Exports grew 142% in Africa and Middle-East, with 7.5% growth in overall exports. The company also crossed 100 million units milestone in cumulative production and sales.

• Apcotex Industries: Appointed Sachin Karwa as the Chief Financial Officer. Karwa will replace Suraj Badale, who will continue to work as DGM – Accounts.

• IRCTC: To restore Lucknow- New Delhi Tejas Express train service from August 7 for 4 days a week.

• Container Corporation of India: Q1 total volumes rise 35.4% year-on-year to 9,91,746.

• Equitas Small Finance Bank: Got RBI nod to apply for amalgamation plan

• Bajaj Auto: Omkar Goswami resigns as an independent director of Bajaj Auto and Bajaj Finance

• Adani Ports: Board to consider raising up to $750 million in USD bonds

• Earnings to watch: Authum Investment and Infrastructure, HFCL, HMT, Steel Strips Wheels

IPO Watch

• GR Infraprojects: Three-day issue ends with 105.45 times demand on final day.

• Clean Science & Technology: Three-day issue ends with 95.54 times demand on final day.

• Data Patterns (India), an Indian aerospace electronic systems provider, plans $100 million IPO

• Indian startup MobiKwik said to near filing for $300 million IPO

Pledge Share Details

Gayatri Projects: Promoter T. Indira Reddy revoked a pledge of 14.92 lakh shares on July 7.

Insider Trades

• Oriental Hotels: Promoter Dodla Venkataramani sold around 33,268 shares on May 25.

• Mold-Tek Packaging: Promoter Mold-Tek Technologies bought 81,374 shares between June 30 and July 2.

Who’s Meeting Whom

IRCTC: To meet Madhu Kela, CIO from Cohesion Fund M K Trust on July 14 and Dhawal Mehta of Somerset Capital Management Singapore on July 13

Trading Tweaks

Ex-Date Final Dividend: UCO Bank, Artemis Medicare Services, Rajratan Global Wire, Polycab India, Camlin Fine Sciences, Alkyl Amines Chemicals, Punjab & Sind Bank, Rane (Madras), Dwarikesh Sugar Industries, Bosch, Persistent Systems, Syngene International, Seshasayee Paper and Boards, Thirumalai Chemicals

Price Band Revised From 10% To 5%: 3P Land Holdings, Kingfa Science & Technology (India), Vishal Fabrics

Move Into Short-Term ASM Framework: Sanginita Chemicals, Agro Phos India, IIFL Securities

Move Into Long-Term ASM Framework: Premier Polyfilm, Oswal Agro Mills, Creative Peripherals and Distribution, Nahar Capital and Financial Services

Money Market Update

Indian bond traders will be awaiting the release of key inflation data later in the day that’s likely to show price pressures further accelerated above the central bank’s upper 6% tolerance level.

• Consumer price index probably rose 6.59% y/y in June after rising by 6.30% in May, according to a Bloomberg survey

• NOTE: RBI Governor Shaktikanta Das in a recent interview said that recent inflation humps were ‘transitory’ and an early exit from pandemic stimulus may hurt gains; he expects inflation to ease from third quarter of fiscal year

• 10-year yields rose 6bps to 6.19% on Friday after the central bank auctioned a new benchmark 10-year bond at a higher 6.1% coupon

• USD/INR fell 0.1% to 74.6350 on Friday

  • Implied opening from forwards suggest spot may start trading around 74.55

F&O Cues

• Nifty July futures ended at 15,721; a premium of 31.2 points.

• Nifty July futures shed 3.29% and 6,559 shares in Open Interest

• Nifty Bank July futures ended at 35,275, a premium of 203.5 points

• Nifty Bank July futures added 2.69% and 2,236 shares in Open Interest.

• Securities added to ban list: Vodafone Idea

• Securities that continue to be in ban list: Indiabulls Housing Finance, Nalco, NMDC, PNB and SAIL