View on market: Stay Cautious, be with quality business:

Asian stocks climbed early Thursday after solid company earnings boosted Wall Street, easing concerns about peak economic growth and coronavirus flareups. The dollar held a decline. Shares rose in Australia and South Korea, while Japan is shut for a holiday. U.S. futures edged up after the S&P 500’s biggest back-to-back advance in two months, led by cyclical stocks like energy and financials. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, climbed 0.83% to 15,739 as of 8:05 a.m.

Key Data/ Action, Result, and Board meeting to watch

Major economic Data:

  • INR: FX Reserves, USDon 23rd July, 2021
  • USD:  Initial Job claims on 22nd July,2021

Earnings:Hindustan Unilever, Bajaj Auto, Hindustan Zinc, Ultratech Cement, Biocon, Bajaj Holdings & Investment, ICICI Lombard General Insurance Company, Mphasis, Indian Energy Exchange, Persistent Systems, IndiaMARTInterMESH, Sterlite Technologies, Wockhardt, Can Fin Homes, CSB Bank, Heidelbergcement India, Bank of Maharashtra, IIFL Securities, Agro Tech Foods, Chennai Petroleum Corporation, India Pesticides, Oriental Aromatics, Music Broadcast, Saregama India, Sahyadri Industries, Shiva Cement, South Indian Bank, Vimta Labs

Brokerage Radar:

CLSAon Asian PaintsMaintain Outperform at the price of Rs.3145 for the Target price of Rs.3275.In an Inflationary setting, focus on Sustaining share gain eroded gross margin. On a low base margin contraction was limited to 20 bps YoY Co is Optimistic on Demand in FY22 with better Monsoon.

HSBC on Havells Maintain Buy at the price of Rs.1097.95 for the Target price of Rs.1215. Front Delivers strong results in Q1 with Rev & Profit above consensus estimates.

Demand recovery continues to surprise positively. See Gross Margin Pressure due to rising commodity costs as transient headwind.

International Markets:

U.S & Europe

Particulars 21stJuly. Chg Chg(%)
Nasdaq 14,631.95 133.07 0.92
Dow 34798.00 286.01 0.83
FTSE 6,998.28 117.15 1.7
CAC 6,464.48 117.63 1.85
DAX 15,422.50 206.23 1.36
Dow Fut.* 34,732.00 43 0.12

Asian markets:

Particulars 22ndJuly. Chg Chg(%)
SGX Nifty 15,739.00 129 0.83
Nikkei 27,548.00 159.84 0.58
Straits Times 3,147.13 28.13 0.9
Hang Seng 27,579.98 355.4 1.31
Shanghai 3,566.18 3.52 0.1

ADR Watch:

Particulars 21stJuly. Chg Chg(%)
Dr Reddy 72.07 0.48 0.67
HDFC Bank 70.27 0.93 1.34
ICICI Bank 17.52 0.12 0.69
Infosys 21.31 0.37 1.77
Tata Motor 20.52 0.08 0.39
Wipro 8.28 0.07 0.85

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR  74.62      -0.34
Brent 71.95 -0.39
Gold 1800.95 -0.14
Silver 25.31 0.23

FIIs & DII

Particulars 20th July. 19th July.
FIIs -2834.96 -2198.71
DIIs 873.14 1047.66

 

Results:

Jubilant Foodworks Q1FY22 (Consolidated, QoQ) Revenue down 14% at Rs 893.18 crore Vs Rs 1,037.85 crore Net profit down 35% at Rs 69.51 crore Vs Rs 105.41 crore Ebitda down 15% at Rs 212.27 crore Vs Rs 250.54 crore Margin at 23.77% Vs 24.14% Opened 29 new stores despite on-ground disruption caused by second-wave of Covid-19

Havells India Q1FY22 (Consolidated, QoQ) Revenue down 22% at Rs 2,609.97 crore Vs Rs 3,339.21 crore Net profit down 22% at Rs 235.78 crore Vs Rs 303.83 crore Ebitda down 30% at Rs 355.31 crore Vs Rs 508.18 crore Margin at 13.6% Vs 15.2% Net cash at Rs 1,278 crore Vs Rs 1,438 crore Total debt at Rs 484 crore Vs Rs 493 crore Demand scenario remains resilient though there are local disruptions owing to lockdowns or scattered market timings Sales were impacted by second Covid wave Inflationary trend in the commodity continues, price increase being effected with a time lag

News Update:

Bharti Airtel: Announced a collaboration with Intel for 5G network development by leveraging virtualised radio access network and open radio access network technologies. The collaboration is part of Airtel’s 5G roadmap for India. Airtel said it will deploy Intel’s latest 3rd gen “Xeon Scalable processors, FPGAs and eASICs, and Ethernet 800 series to build a solid foundation for rolling out wide-scale 5G, mobile edge computing and network slicing”.

Adani Ports and SEZ: To issue benchmark-sized USD-denominated senior notes with long 10-year and/or 20-year tenors. Note issue to repay existing indebtedness, for capital expenditures and for general corporate purposes in India and Sri Lanka. Further, Adani Ports whose renewable energy installation has been 20 MW as of FY21, aims to be carbon neutral by 2025. It also aims to ensure high growth and Ebitda margin, while maintaining investment grade ratings. The company reduced capex plans of FY21 to focus on maintaining adequate liquidity and conserving cash.

IDFC: Reserve Bank of India has, vide its letter dated July 20, 2021, clarified that after the expiry of lock‐in period of 5 years, IDFC Limited can exit as the promoter of IDFC FIRST Bank Limited.

Asian Paints: Demand outlook is positive, especially with the second wave of coronavirus waning, and a good monsoon forecast would further underpin sales from the rural sector, the company said. Diwali festival season is expected to help retail demand from September onward. The company is witnessing early signs of softening in prices of raw material prices, after an increase of 13%-15% in Q1. Further, it has taken another round of price increases effective July 1.

Source: Moneycontrol,Livemint,, Bloomberg,Investing

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