Sources to CNBC-TV18 | IRDAI likely to give its approval for Max Life-Axis Bank deal by month-end as IRDAI queries on larger issues deal are addressed. IRDAI is broadly convinced with clarifications submitted by both the companies.
Navneet Damani, VP – Commodities Research, Motilal Oswal Financial Services Ltd
Gold prices recovered from an over 3% slide in the previous session after US jobless claims unexpectedly topped one million again and the Federal Reserve minutes reiterated concerns over economic recovery. An unexpected rise in jobless claims last week, volatility in equities, increasing worry over rising COVID cases and other uncertainties are supportive for metal prices although, rebound in yields from the lows and rise dollar index limited gains for the same. On the other hand, to and fro comments between the U.S. and China continue to keep the market cautious. No new high level trade talks are scheduled but both the sides remain in touch about complying with the phase one deal. Market participants today, will keep an eye on the preliminary manufacturing and service PMI number expected from major economies; which if reported weaker than expectations, could lend further support to bullions. The broader trend on COMEX could be in the range of $1925-1975 and on domestic front prices could hover in the range of Rs 52,000-52,700
Market Update | Benchmark indices continue to trade in the green. Financials, auto and pharma stocks led gains.
FPIs turn net buyers in June quarter; invest $4 billion in Indian equities
After pulling out massive funds in March quarter, foreign investors pumped in nearly USD 4 billion in Indian equities in the three months ended June on attractive valuations, lifting of lockdown curbs and the government’s efforts to kickstart economic activity, says a Morningstar report. Besides, foreign portfolio investors’ (FPIs) assets in Indian equities too surged after a sharp fall in the previous quarter. The value of their investments in Indian stocks climbed significantly during the quarter ended June 2020. This was largely on the back of robust net FPI inflows, coupled with a strong recovery in the country’s equity markets. As of the quarter ended June, the value of FPI investments in Indian equities stood at around USD 344 billion, which is considerably higher than the USD 281 billion registered in the preceding quarter, a spike of almost 23 percent. Read more here.
RBI Governor Shaktikanta Das to CNBC Awaaz | Can’t speculate on what we will do in the future, but we have the policy space.
RBI Governor Shaktikanta Das to CNBC Awaaz | RBI stands battle-ready. We will use all conventional as well as unconventional measures as needed in the market. Rates in the bond market have come down across the board. The economy will recover if the infection curve flattens or vaccine is found. India’s economy has a core resilience, it will recover.
NCLT allows initiation of bankruptcy proceedings against Anil Ambani over Rs 1,200 cr personal guarantee to SBI
NCLT Mumbai allows initiation of bankruptcy proceedings against Anil Ambani over Rs 1,200 crore personal guarantee to SBI. Anil Ambani’s spokesperson says that the NCLT order is being reviewed, taking advice on filing appropriate appeal against RP appointment. NCLT order directing RP (resolution professional) appointment does not constitute admission of SBI’s application, he added. RP will examine SBI’s insolvency application against Anil Ambani, submit report to NCLT. NCLT order will have no bearing on operations of Rel Infra, Rel Power, Rel Cap, the company’s spokesperson said.
Divi’s Labs, SBI Life jump on inclusion in Nifty50 index; should you buy?
Shares of Divi’s Laboratories and SBI Life Insurance rallied on Friday after the NSE announced that both stocks will enter the benchmark index Nifty50 from September 25, 2020. These stocks will replace ZEE Entertainment Enterprises and Bharti Infratel from the benchmark index. The stock price of Divi’s Laboratories rose as much as 4.5 percent to hit an all-time high of Rs 3,333.60, while SBI Life Insurance rose 4.2 percent to Rs 889 per share in intra-day deals. On the other hand, Zee fell nearly 5 percent to day’s low of Rs 189.85 while Bharti Infratel lost 1 percent to trade at Rs 197.50.
Besides SBI Life Insurance Company and Divi’s Laboratories, NHPC, Page Industries and Shriram Transport Finance Company will be excluded from Nifty Next 50. In their places, Adani Green Energy, Alkem Laboratories, Bharti Infratel, Larsen & Toubro Infotech and Tata Consumer Products will be added in the index. Read more here.
DPIIT Secy Guruprasad Mohapatra tells CNBC-TV18 that the government is looking at actions like raising import protection for key items. He notes that India faces an import challenge in sectors like furniture and leather.
PSBs to need capital up to Rs 2.1 trillion over next 2 yrs; govt support to continue: Moody’s
Public sector banks will need external capital of up to Rs 2.1 trillion over the next two years and the most likely source to plug this shortfall will be government support, Moody’s Investors Service said on Friday. According to Moody’s, the sharp slowdown in India’s economic growth, exacerbated by the virus outbreak, will hurt the asset quality of public sector banks (PSBs) and drive up credit costs. Read more here.
Yash Gupta, Equity Research Associate, Angel Broking Ltd
Listing of Max Healthcare Institute Ltd – Max Healthcare and Radiant merged their healthcare business to create the second largest healthcare chain in India by revenue after Apollo Hospitals. Max Healthcare will be led by Abhay Soi and backed by KKR&Co., who are well known as a global investment company. Revenue for the merged entity for FY 2020 is Rs 4,026 crores and it will be the second largest private hospital chain after Apollo Hospitals. Currently Max Healthcare has 17 Facilities with total bed capacity of 3,400 with Major facilities in the NCR region. Abhay Soi and KKR will be the promoters of Max Healthcare with controlling stakes of 52% and 23.3% respectively. We expect Max Healthcare to do well under the leadership of Abhay Soi and KKR.
Buzzing | Strides Pharma shares zoom 8% on USFDA approval for Ursodiol tablets
Shares of Strides Pharma Science rose 8.16 percent to Rs 614.65.on the BSE on Friday after the company received the approval of US Food & Drug Administration (US FDA) for Ursodiol Tablets used for treatment of patients with primary biliary cirrhosis (PBC). PBC is a progressive disease of the liver caused by a buildup of bile within the liver that results in damage to the small bile ducts that drain bile from the liver.
Max Healthcare freezes at 5% upper circuit
Shares of Max Healthcare Institute listed at the bourses at Rs 112 per share — at Rs 112.3 on the BSE and Rs 111.7 on the NSE — on Friday. The shares were locked in the 5 per cent upper circuit band with a combined 0.82 million shares changing hands within the initial minutes of trade.
Income Tax refunds worth Rs 88,652 cr issued to 24.64 lakh taxpayers so far this fiscal
The Income Tax department on Friday said it has issued refunds worth Rs 88,652 crore to over 24 lakh taxpayers so far this fiscal. This include personal income tax (PIT) refunds amounting to Rs 28,180 crore issued to over 23.05 lakh taxpayers and corporate tax refunds amounting to Rs 60,472 crore to over 1.58 lakh taxpayers during this period. “CBDT has, so far, issued refunds of over Rs 88,652 crore to more than 24.64 lakh taxpayers from 1st April, 2020 onwards. Income tax refunds of Rs 28,180 crore have been issued in 23,05,726 cases & corporate tax refunds of Rs 60,472 crore have been issued in 1,58,280 cases,” the Income Tax department tweeted. More here
Indian Overseas Bank shares gain 6% on strong Q1 earnings
The share price of Indian Overseas Bank rallied over 6 percent in the early trade on Friday after the bank reported a net profit of Rs 120.69 crore in the first quarter of fiscal 2021 as against a loss of Rs 342.08 crore in the year-ago period. The stock rallied 6.82 percent to an intraday high of Rs 12.21 on the BSE. The bank’s net interest income (NII) in Q1FY21 rose 9.6 percent to Rs 1,412.32 crore from Rs 1,288.46 crore, YoY.
Commodity check: Oil prices rise as producers talk up efforts to rein in supply
Oil prices climbed on Friday, on track for a third consecutive weekly gain, pulled higher by major oil producers’ efforts to hold back output amid concerns about economic recovery from the coronavirus pandemic. U.S. West Texas Intermediate (WTI) crude futures rose 13 cents, or 0.3 percent, to $42.95 per barrel at 0505 GMT, on track for a 2 percent rise for the week. Brent crude futures were up 17 cents, or 0.4 percent, at $45.07 per barrel, heading for a 0.5 percent rise for the week. Both benchmark contracts fell around 1 percent on Thursday on economic concerns after weekly U.S. jobless claims came in higher than expected.
Top Sensex gainers and losers at this hour
Buzzing | Shares of Indian Overseas Bank rallied over 6 percent after the bank reported a net profit of Rs 120.69 crore in the first quarter of fiscal 2021 as against a loss of Rs 342.08 crore in the year-ago period. The bank’s net interest income (NII) in Q1FY21 rose 9.6 percent to Rs 1,412.32 crore from Rs 1,288.46 crore, YoY.
Blue Star | B Thiagarajan of Blue Star says that the company will end FY21 with 80-85 percent of FY20 sales. He expects to company to see 100 percent normalcy by Q4.
Buzzing | Shares of Jindal Stainless rallied over 13 percent to hit fresh 52-week high of Rs 53 on the BSE after India Ratings affirmed its long-term issuer rating at ‘IND 888’ with a ‘stable’ outlook.
Technical View | We have opened smartly and well above the 11,350 level which is a positive sign for the Nifty. We should be headed to 11,500 and then 11,700. There is every possibility that we achieve these levels by the end of this month’s expiry. The support continues to be at the 11,100 levels. A buy on dips strategy would be the best approach for traders to implement, says Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments
Rupee Opens | Indian rupee opened higher at 74.93 per US dollar against the previous close.
New Listing | Max Healthcare Institute lists at Rs 106.45 per share on the National Stock Exchange.
GMM Pfaudler shares jump 8% on acquisition of 54% stake in parent firm
Shares of GMM Pfaudler surged 8 percent on Friday after the company acquired a 54 percent stake in its parent firm Pfaudler Group for $27.4 million. The stock rose as much as 8.1 percent to its intra-day high of Rs 6,360 per share. GMM, which supplies process equipment to pharmaceutical and chemical industries, has signed definitive agreements to acquire a majority stake in Pfaudler Group from the private equity firm Deutsche Beteiligungs AG Fund VI (DBAG) for the stake.
Govt plans further stake sale in IRCTC, invites bids from merchant bankers by Sep 10
The government is planning to sell part of its stake in Indian Railway Catering and Tourism Corp (IRCTC) in the current fiscal, and has invited bids from merchant bankers for managing the sale process. “The GoI intends to disinvest a part of the paid up equity capital of IRCTC out of its shareholding through ‘Offer for Sale (OFS) method of shares by promoters through the stock exchanges’ as per Securities and Exchange Board of India (Sebi) Rules and Regulations,” DIPAM said while inviting Request for Proposal (RFP). The merchant bankers will have to submit their bids by September 10. The government currently holds 87.40 percent stake in IRCTC. To meet Sebi’s public holding norm, the government has to lower its stake in the company to 75 percent. More here
Directorate General of Trade Remedies (DGTR) recommends provisional anti-dumping duty on phenol imports from Thailand & USA
Opening Bell: Sensex opens 250 points higher, Nifty around 11,400; all sectors in the green
Indian indices opened higher, tracking a rally in global markets, led by buying in key sectors. At 9:18 am, the Sensex was trading 267 points higher at 38,488 while the Nifty rose 77 points to 11,389. Broader markets were also in-line with the midcap and smallcap indices up 0.8 percent each. No stocks were in the red on the Nifty50 index while Powergrid, Hindalco, SBI, Tata Motors and JSW Steel led the losses. Among sectors, the metal index was up the most, 1.3 percent while Nfty Bank and Nifty Realty also rise 1 percent each. Nifty Auto and Nifty Pharma also added 0.9 percent.
Record-breaking global stocks take a breather, data weighs on dollar
Asia’s stock markets bounced on Friday following Wall Street’s lead, but were set for their softest week in about a month as investors grapple with tepid economic data and lofty valuations after a huge rally that has wiped out coronavirus losses. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.6 percent on Friday, though it is it poised to snap a four-week winning streak with a small weekly loss. Japan’s Nikkei edged up 0.3 percent but was headed for a 1.5 percent weekly drop, while a bond market selloff has also moderated in recent days as caution and summer-time lassitude weighs on the mood after the S&P 500 touched another record intraday peak. More here
EPFO adds over 8 lakh net subscribers during first quarter of FY 21: Payroll data
Despite coronavirus crisis, the EPFO subscribers base increased by nearly 8.47 lakh members during the first quarter of FY21, according to provisional payroll data released today. The update suggests that the COVID-19 pandemic outbreak had adversely affected the enrolments in April and May 2020. Despite lockdown, about 0.20 lakh and 1.72 lakh net new subscribers were added to social security schemes of EPFO in April and May 2020. According to payroll data, there were recovery in June with addition of 6.55 lakh net subscribers, registering a 280 percent month-on-month growth. The subscriber base growth is on account of increased number of new subscribers, lower exits and higher rejoining by exited members, an EPFO statement said. The new subscribers joining have increased by 64 percent from 3.03 lakh in May to 4.98 lakh in June. In addition, the exits from EPFO subscriber base declined by nearly 33 percent from 4.45 lakh in May to 2.96 lakh in June 2020, according to the statement.
Axis MF sells shares worth over Rs 152 crore of V-Guard Industries
Axis Mutual Fund on Thursday sold more than 94.96 lakh shares worth over Rs 152 crore of V-Guard Industries through an open market transaction. As per block deal data available on the NSE, the company’s shares or little over 2.22 stake were offloaded at an average price of Rs 160.25 apiece. They were purchased by SBI Mutual Fund. Shares of V-Guard Industries on Thursday rose 6.40 per cent to Rs 170.50 on the NSE. On the BSE, two promoters of Sequent Scientific Ltd offloaded shares valued at more than Rs 400 crore through open market transactions. The promoters — K Ravishankar and Arunkumar Pillai — sold a total of 3,13,99,895 shares, or 12.64 per cent stake. They were sold at an average price of Rs 127.9 per share. More here
