The GRS Solution Sensex Dives 300 Pts, Nifty Breaks
9850; FMCG Index Sinks 7% 2:20 Pm Market Outlook: According To Ashwini Agarwal,
Co-Founder & Partner Of Ashmore Investment Management India LLP, Valuations
Are Challenging In Many Areas Of The Market So One Has To Be Cautious And
Careful.
In Fiscal 2019 And 2020, He Expects To See Much
Better Earnings Growth. Maybe Not In Fiscal 2018 Itself Because Q1 Of FY18 Will
See A Lot Of Upheavals Because Of De-Stocking From Goods And Services Tax (GST),
He Further Mentioned.
2:05 Pm Earnings: Ultratech Cement Said Its
Profit On Standalone Basis In June Quarter Grew By 14.9 Percent To Rs 890.6
Crore, Driven By Operational Income And Lower Finance Cost.
Revenue During The Quarter Increased 6 Percent
To Rs 7,520.3 Crore Compared With Rs 7,095.2 Crore In Same Quarter Last Fiscal.
According To The Cement Firm, Government
Spending On Infrastructure, Rural And Affordable Housing Will Be Key Demand
Drivers.
Operating Profit Grew By 9.7 Percent
Year-On-Year To Rs 1,560 Crore And Margin Expanded By 70 Basis Points To 23.5
Percent In The Quarter Ended June 2017.
1:47 Pm Buzzing: Shares Of Balaji Telefilms Gained
Over 4 Percent Intraday As Investors Cheered The Likely Fundraising Activity By
The Firm.
In A Late Evening Exchange Notification, The
Company Informed The Exchanges That A Meeting Of The Board Of Directors Will Be
Held On July 20, 2017, To Consider Various Fund Raising Options Including
Raising Funds Through Issue Of Securities On Preferential Basis, Subject To
Approval From The Shareholders Of The Company And Other Necessary Approvals, If
Any.
The Company Was In The News Recently After One
Of Its Top Executives Exited The Firm. It Announced The Stepping Down Of Its Group
CEO Sameer Nair From An Executive Capacity.
1:23 Pm Market Check: Equity Benchmarks
Extended Losses In Afternoon Trade, With The Sensex Down 298.79 Points At
31,775.99, Dragged By ITC (Down 12.2 Percent) And Reliance Industries (Down 2
Percent). HDFC Bank Also Turned Lower.
The 50-Share NSE Nifty Has Broken The 9850
Level, Down 71 Points At 9,844.95.
The Market Breadth Was Negative As About 1,465
Shares Declined Against 1,039 Advancing Shares On The BSE.
ITC Continued To Reel Under Heavy Selling
Pressure On Hike In Cess On Cigarettes By The Government.
1:05 Pm Buzzing: Hindustan Unilever Shares
Touched A Fresh Record High Of Rs 1,190, Up 3.2 Percent Intraday Ahead Of
Earnings For The Quarter Ended June 2017.
The FMCG Major Is Expected To Report Flat
Growth In Profit At Rs 1,175 Crore Against Rs 1,174 Crore In Same Quarter Last
Fiscal, According To Analysts Polled By CNBC-TV18.
Revenue Is Seen Rising 2.7 Percent Year-On-Year
To Rs 9,040 Crore While Operating Profit May Increase 4 Percent To Rs 1,700
Crore And Margin May Expand 20 Basis Points To 18.8 Percent Compared With
Year-Ago Quarter.
Underlying Volume Growth Is Seen In The Range
Of 2 Percent Degrowth To 2 Percent Growth Against 4 Percent Each In Year-Ago
Quarter And Previous Quarter.
12:48 Pm Bad Loans: Indian Banks Need To
Provide A Bare Minimum Rs18000 Crore Additionally Towards The 12 Accounts
Identified By The Reserve Bank Of India (RBI) For Reference To The National
Company Law Tribunal Under The Insolvency And Bankruptcy Code In FY18,
Estimates India Ratings And Research (Ind-Ra).
Ind-Ra's Analysis Pegs The Weighted Average
Provisioning Currently At 42 Percent By Banks Towards The 12 Identified
Accounts. Ind-Ra Forecasts The Additional Provisioning To Eat Into Banks’
Profits By Around 25 Percent In FY18. This Indicates A Shave-Off In Return On
Assets Of 12bp In FY18.
The Agency Notes That The New Minimum Required
Provisioning Stands At 50 Percent Towards Each Of The 12 Identified Accounts,
Which Indicates That Banks With Average Provisioning Of 50 Percent On These
Accounts May Also Need To Provide Additional Provisions To Reach 50 Percent
Towards Each Of The 12 Accounts.
12:40 Pm Europe Opening: Bourses In Europe Opened
Lower With Global Sentiment Dampened By A Gridlock In US Politics Over
Healthcare Reform.
The Pan-European Stoxx 600 Was 0.3 Percent
Lower With Most Sectors Moving South.
Markets In Asia Fell From Their Two-Year Highs
As The US Dollar Sank Overnight. The Greenback Took Another Hit On Tuesday After
The Trump Health-Care Bill Failed To Get Enough Backing To Proceed To A Debate.
12:35 Pm Buzzing: Transformers And Rectifiers (India)
Shares Rallied As Much As 7.5 Percent In Afternoon Trade Ahead Of Board Meeting
To Consider Fundraising Plan.
The Company Informed Exchanges That The Meeting
Of Board Of Directors Will Be Held On August 3 To Consider Raising Funds Through
Issue Of Securities Through Qualified Institutional Placement (QIP) Or
Preferential Allotment.
The Board Will Consider And Approve Subdivision
Of Equity Share From The Face Value Of Rs 10 Per Share To Re 1 Per Share.
12:16 Pm Interview: Vinod Aggarwal, MD & CEO-VE,
Commercial Vehicles, Eicher Motors, Said The Benefits Of Effect Rate Post GST Were
Passed On To The Consumers To The Tune Of 1.5 To 5 Percent On All The Models. Prior
To GST The Effective Rates Were From 26 To 31 Percent. The Company Also Has
Some Benefits On Input Purchase Prices, He Said.
With Regards To Sales, He Said The Industry In
The Last 9-12 Months Went Through Many Challenges Be It Demonetisation, Move
From BS III To BS IV, Then GST. So, The Sales Are Expected To Go Up From The
Festive Month Of September. However, In July And August Volumes Could Remain
Muted And Not Negative, He Said.
The CV Sales For The Company In The Month Of June
Dropped 20 Percent.
12:00 Pm Earnings Estimates: HT Media Is
Expected To Report A Whopping 56 Percent Growth In Profit At Rs 40 Crore In June
Quarter Against Rs 35 Crore In Year-Ago Quarter, Backed By Operational Income.
According To Average Of Estimates Of Analysts
Polled By CNBC-TV18, However, Revenue May Fall 1 Percent To Rs 606 Crore From Rs
614 Crore Yoy.
Operating Profit May Increase 21 Percent
Year-On-Year To Rs 77.6 Crore And Margin May Expand 300 Basis Points To 13
Percent In The Quarter Gone By.
11.35 Am Market Check: Equity Benchmarks
Remained Under Pressure In Late Morning Trade, With The Sensex Falling 238
Points To 31,836.78 And The Nifty Down 54.90 Points At 9,861.05.
The Broader Markets Continued To Outperform,
With The BSE Midcap Trading Flat.
Infosys, L&T, Asian Paints, Kotak Mahindra
Bank, SBI, HDFC, TCS, Sun Pharma And Tata Motors Gained Up To 1.5 Percent
Whereas ITC Tanked 11.6 Percent And Reliance Industries Was Down 1.9 Percent.
11:05 Pm IPO: Bharat Road Networks Plan To
Raise Rs 600-650 Crore Via IPO. SREI Infra Had Invested Rs 341 Crore For A
30.43 Percent Stake In Bharat Road Networks In FY17.
Talking On The Above Development, Hemant
Kanoria, CMD, SREI Infra, He Said The IPO Is Expected To Come Through In The
Next One Month Or So And They Expect Some Money To Flow Into SREI Through The IPO.
10:41 Am Chart Of The Day:
10:35 Am MF AUM Performance: Overall, Fund
Manager Remains Upbeat On Markets As Domestic Mutual Fund (MF) Industry Average
AUM Increased For The 15th Consecutive Quarter In 2QCY17 To A New High Of Rs 19.6
Lakh Crore.
On A Yoy Basis, Average AUM Saw A 35 Percent
Rise, Primarily On Account Of Inflows In Growth (Equity), Income And Liquid
Funds, Backed By Increased Participation Of Domestic Investors In Equity
Schemes, Said A Motilal Oswal Report.
Equity AUM Rose For The Seventh Consecutive
Month In June Scaled To A New High Of Rs 5.9 Lakh Crore (+1.3% Mom And +38%
Yoy). The Increase In Equity AUM Was Led By A Rise In Equity Scheme Sales While
Redemptions Rose 38 Percent On A Mom Basis To Rs183 Bn, It Said.
10.15 Am Market Check: The Market Continued To
Fall In Morning Trade, With The Nifty Struggling Below 9900 Due To Correction
Only In Reliance Industries And ITC.
The 30-Share BSE Sensex Was Down 200.73 Points
At 31,874.05 And The 50-Share NSE Nifty Fell 42.95 Points To 9,873 But The
Broader Markets Outperformed Benchmarks, Rising 0.2 Percent On Recovery In
Market Breadth.
About 1039 Shares Advanced Against 965
Declining Shares On The BSE.
Reliance Industries Slipped 1.5 Percent On
Profit Booking After Rising More Than 12 Percent In Previous 11 Consecutive
Sessions.
ITC Shares Lost 11 Percent After The GST
Council Hiked Cess On Cigarettes That Contributed More Than 45 Percent To Total
Revenue. ITC Alone Contributed 335 Points To Sensex' Fall Followed By Reliance
Industries With 47 Points.
However, Other Stock, Including Index
Heavyweights Continued To Support The Market And Helped Benchmark Indices Trim
Losses.
10:00 Am Earnings Estimates: FMCG Major Hindustan
Unilever, Which Is Set To Declare Its June Quarter Earnings Today, Is Expected
To Report Flat Growth In Profit At Rs 1,175 Crore Against Rs 1,174 Crore In
Same Quarter Last Fiscal.
In June Quarter 2016, The Company Had Reported
An Exceptional Gain Of Rs 70.8 Crore.
Topline And Operational Performance Will Be Key
To Watch Out For While The Street Is Divided On Volume Growth Given Uncertainty
Post GST Rollout.
According To Analysts Polled By CNBC-TV18,
Revenue Is Seen Rising 2.7 Percent Year-On-Year To Rs 9,040 Crore While
Operating Profit May Increase 4 Percent To Rs 1,700 Crore And Margin May Expand
20 Basis Points To 18.8 Percent Compared With Year-Ago Quarter.
Underlying Volume Growth Is Seen In The Range
Of 2 Percent Degrowth To 2 Percent Growth Against 4 Percent Each In Year-Ago
Quarter And Previous Quarter.
9:45 Am Buzzing: Share Price Of Cement Maker ACC
Touched 52-Week High Of Rs 1,798.85, Rising Nearly 3 Percent Intraday On Robust
Numbers Declared By The Company For The Quarter Ended June 2017.
The Company's Consolidated Profit Grew By 32.6
Percent Year-On-Year To Rs 326.2 Crore Despite Higher Tax Expenses. The Growth
Was Driven By Strong Operating Income And Revenue.
Revenue During The Quarter Increased 20.5
Percent To Rs 3,959 Crore Compared With Rs 3,286 Crore In Same Quarter Last
Fiscal As Cement Sales Volume Increased 10.1 Percent To 6.74 Mt From 6.12 Mt On
Year-On-Year Basis.
9:35 Am MS Downgrades ITC: Morgan Stanley Downgraded
The Stock To Equal-Weight From Overweight And Reduced Target Price To Rs 285
From Rs 395.
According To The Research House, The Company
Will Need 12-13 Percent Weighted Average Cigarette Price Hike Hereon And Will
Need 20 Percent Price Increase In KSFT Segment To Offset Tax Increase.
Morgan Stanley Expects 3 Percent Volume Decline
In FY18 Versus Earlier Estimate Of 5 Percent Growth And Expects 6 Percent
Cigarette Business EBIT Growth Versus 20 Percent Earlier.
9:15 Am Market Check: Equity Benchmarks Opened
Sharply Lower On Tuesday, With The Nifty Falling Below 9900 Level, Dragged By ITC
After Cess On Cigarette Hiked By The GST Council.
The 30-Share BSE Sensex Was Down 239.02 Points
At 31,835.76 And The 50-Share NSE Nifty Fell 56.55 Points To 9,859.40.
ITC Crumbled Nearly 14 Percent As Brokerage
Houses Downgraded The Stock After The Goods And Services Tax (GST) Council Decided
To Increase The Cess On Cigarettes. Other Stocks Like Godfrey Phillips (Down 10
Percent) And VST Industries (Down 5 Percent) Also Caught In Bear Grip.
HDFC, Infosys, TCS, Wipro And ACC Gained Up To
1.5 Percent While Bharti Airtel Surged 5 Percent.
About Two Shares Declined For Every Share
Rising On The NSE.
Shree Digvijay Cement, Linde India, Max
Financial And Jubilant Foodwors Lost Up To 5 Percent While Fortis Healthcare And
Aditya Birla Nuvo Gained Up To 5 Percent.