Weekly Market View – 11th July 2020

Indian Market Outlook:

The Key benchmark indices rose over 1% over the week. The markets continued their range-bound movements as the increasing COVID cases worldwide kept markets on edge. Surging to a new 52-week high Reliance Industries Ltd shares helped the index recoup some losses. The Nifty ended the week 1.51 percent higher at 10768 points while Sensex ended 1.59 percent higher at 36594 points. The mixed performance was seen from the broader market space. The BSE Midcap index ended 0.81 percent higher, while the BSE Small cap index rose 1.59 percent, during the course of the week. Foreign Institutional Investors were the net sellers during the week; sell equities worth Rs.635 crore while the DIIs were the net sellers of Rs 2609 crore. The bank nifty index, which had been rising mutedly until now, has outperformed the benchmark index in the week gone by. The concern related to rising COVID-19 cases in India and aboard is still lingering, and that, in turn, affecting the pace of economic activities. Going forward, the earnings season would be of key significance as it faced the maximum brunt of lockdown. Management commentary would be keenly watched out for and could keep the markets volatile in the near-term. On Macro front CPI (YoY) (Jun) and WPI Inflation (YoY) (Jun) of India are key data releases scheduled for next week. Key Earnings to watch next week are HCL Technology, HDFC Bank, Bandhan Bank and M & M Financial.

Trade AnyTime AnyWhere With Elite Empower Mobile App

Latest Spot Price (in US $)

Get All Your Mutual Fund Portfolio Retuns on Your Mobile by Elite Kuber App

Global Weekly Events

Domestic Economy Indicators

Get Stock Market Recommendation By Our Research Analysts

Economic News:

• India’s industrial output continued to contract sharply over a year ago, even though it showed a marginal pick up over the month of April, when the nation went into a near complete lockdown. The Index of Industrial Production contracted by 34.7% in May over last year, compared to a revised contraction of 57.6% in April. Twenty eight economists polled by Bloomberg had forecast May IIP contraction at 37.8%. Like in April, the government refrained from providing the year-on-year change and only released index numbers. As such, the change in industrial output and its components has been computed by BloombergQuint using index data for May 2019 and May 2020.

• Pitching for more fiscal support to revive the economy, Hero Enterprises Chairman Sunil Kant Munjal on Friday said the overall recovery in the economy may take 2-3 years even as some sectors could see a quicker recovery. “The overall recovery in the economy will take between 2-3 years. But, we will see sectors come up very quickly. Some important sectors with large multiplier and large potential for employment, which are still struggling, and without support, they will actually not be able to fully recover in this time,” Munjal said.

 Industry News:

• RBI Governor Shaktikanta Das today said banks and NBFCs have to improve governance, sharpen skill management and raise capital on a proactive basis to deal with the impact of coronavirus in the financial system. While speaking at the SBI Conclave, the RBI Governor in his keynote address said that ‘building buffers and raising capital’ will be very crucial not only to ensure credit flow but also to build resilience in the financial system. RBI had earlier advised banks and NBFCs to undertake COVID stress tests to analyse the balance sheet impact in areas like liquidity, asset quality, profitability and capital adequacy for the years 2020-21 and 2021-22.

• In Sales of CNG vehicles are projected to shoot up in strong double-digits in the current financial year on lower running costs and wider availability of the fuel, even as rising petrol and diesel prices hurt demand amid weak market sentiment. Maruti SuzukiNSE -0.78 % expects sales of CNG vehicles to grow 36% to 144,000 units in FY21. The company has eight CNG-powered vehicles in its portfolio and plans to make the option available on all small cars. South Korean rival Hyundai plans to launch the fuel option in the Hyundai XCent sedan later this year, targeting customers especially in the fleet segment. Between them, Maruti Suzuki and Hyundai sell about a dozen factory-fitted CNG models.

 Company News:

• In what seems to be a landmark move, Indian company Biocon got approval from the Drug Controller General of India on Friday to use Itolizumab on COVID patients. It is a drug that the company already has in the market and is used to treat patients with psoriasis, a debilitating skin ailment. The linknode between the two ailments – psoriasis and COVID – being the drug’s ability to tone down the aggressive and self-damaging response of the body’s immune system. In COVID, as the virus multiples and progresses within the body, the immune system of the body starts to overreact. This is called the cytokine storm in medical lingo but a term that has now entered common parlance.

• SAIL has earned a net profit of Rs 2,021.54 crore in FY’20 on a turnover of Rs 61,024.88 crore. The net profit for the year was a shade below the previous year’s figure of Rs 2179 crore. The company also reported a Profit Before Tax (PBT) of Rs 3,170.66 crore in spite of the challenging market conditions including the onset of the coronavirus pandemic, an official statement said. SAIL said EBITDA per tonne of Saleable Steel improved from Rs 7,284 in FY19 to Rs 7,869 FY20.

• In Jio Platforms has received subscription amounts, totalling Rs. 30,062.43 crore, for a 6.3% stake sale to L Catterton, PIF, Silver Lake, and General Atlantic Singapore. On Tuesday, Facebook Inc-owned Jaadhu Holdings LLC paid the subscription amount of 43,574 crore to Jio Platforms Ltd for a 9.99% stake in the latter.

Global News:

• President Donald Trump said a phase two trade deal with China isn’t under consideration, saying the relationship between Washington and Beijing has deteriorated too much. “I don’t think about that,” Trump said Friday when asked about the possibility of a second round of trade agreements with China. “The relationship with China has been severely damaged.”

• The race is on to lead the World Trade Organization out of the worst crisis of its 25-year existence. In the coming months delegates from the WTO’s 164 members will select from a roster of eight candidates to become the seventh director-general of the Geneva-based trade body. The window for nominations closed Wednesday. The current chief, Roberto Azevedo, is stepping down on Aug. 31 — a year before his second four-year term expires. His successor will have a number of formidable tasks.

(Source: Bloomberg Quint, Economic Times, Business Today, Business Standard, Financial Express, Investing, Moneycontrol, livemint)

 Open Your Demat Account to Invest in Upcoming IPO’s

Forthcoming Corporate Actions

Source: BSE, Elite wealth Research

Upcoming Board Meetings

Source: BSE, Elite wealth Research 

Major Economy Indicators

DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014

Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more

For Daily Share Market Updates, Daily debt market review, Market Research Analysis reports, Weekly Techno-Funda Report, Fundamental Analysis Report, Monthly Recommended stock Picks, Equity Trading Tips, Upcoming IPO/NFO/Bonds/Ncd’s updates & other related information Subscribe our research plan