Market Update for 27/07/2020: | Street-fluence

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WORLD MARKET–

Investors this week will be looking to the Federal Reserve’s meeting for clues on what comes next for policy amid expectations for more accommodation ahead.
Wrangling continues in Washington over a stimulus bill.
On the virus front, cases fell in California, Arizona, Florida and New York.
“The July FOMC meeting should kick off a period from August into mid-September in which markets should price in an increasingly dovish, forward-looking Fed policy via lower real rates,” Morgan Stanley strategists including Matthew Hornbach wrote in a report. “This should benefit breakeven inflation rates, support risk assets, and weigh on the U.S. dollar.”
Policy makers are not expected to adopt a shift in strategy at their July 28-29 meeting, even as they review how the outlook has changed.
Hang Seng Debuts New Index of Benchmark-Beating Tech Stocks.
Japanese shares were set for a lower start after a two-day holiday.

WORLD EVENTS–

Earnings include, Apple, Amazon.com, Alphabet, Chevron, Rio Tinto, L’Oreal, Caterpillar, Samsung, Barclays and Credit Suisse.
The Federal Open Market Committee holds its policy meeting on Tuesday, with an announcement due on Wednesday.
U.S. second-quarter GDP is expected on Thursday.
China PMI data comes Friday.

DOMESTIC EVENTS-

Nifty rejig to happen on the 31st of July.
Yes Bank FPO shares to list today.
Mindspace Business Parks REIT IPO to open (Rs 274-275).
Chemicals Minister D.V. Sadananda Gowda, to hold a press conference to announce new guidelines for setting up bulk drugs and medical devices’ parks.

STOCK WISE NEWS-

ICICI Bank Q1FY21 RESULT UPDATE:

Net Interest Income up 19.9% to Rs 9,279 crore
Net profit up 36.3% to Rs 2,600 crore
Provisions up 27% to Rs 7,594 crore sequentially
Gross NPA at 5.46% from 5.53% in the previous quarter
Net NPA at 1.23% from 1.41% in the previous quarter
Made additional Covid-19 related provisions worth Rs 5,550 crore this quarter
Total provisions against Covid-19 now at Rs 8,275 crore
Sold 3.96% stake in ICICI Lombard and 1.5% in ICICI Lombard – resulting in net gain of Rs 3,036.3 crore in the standalone results
Advances up 6.5% to Rs 6.31 lakh crore
Deposits up 21% to Rs 8 lakh crore
Slippages worth Rs 1,160 crore this quarter
Recoveries and upgrades at Rs 757 crore this quarter
NIMs at 3.69% from 3.87% last quarter Loans under moratorium down to 17.5% of total loans by June 30 from 30% in March
Board approved fund raising of Rs 15,000 crore which is pending regulatory and shareholder approval
Will dilute 4% stake in ICICI Securities this year

ITC Q1FY21 RESULT UPDATE:

Net sales down 17.4% to Rs 9,501 crore
Net profit down 26% to Rs 2,343 crore
Ebitda down 42% to Rs 2,646 crore
Ebitda margin at 27.8% from 39.7%
Cigarette segment revenue down 29.1% to Rs 3,853 crore; margins down to 61.1% from 70.8%
FMCG – other segment revenue up 10.3% to Rs 3,375 crore; margins at 3.7% from 2.5%

JSW STEEL Q1FY21 RESULT UPDATE:

Net loss of Rs 561 crore from net profit of Rs 1,028 crore
Revenue down 41% to Rs 11,782 crore
Ebitda down 64% to Rs 1,341 crore
Ebitda margin down to 11.4% from 18.7% last year
Output down 30% to 2.96 million tonnes
Facilities operated at an average capacity utilisation of 80% in May and June
Domestic steel prices declined in May and June
Have seen modest increase in domestic steel prices in July and expect some more hike in August
Coking Coal cost to come down $20-25 for September quarter sequentially.

AMBUJA CEMENTS Q2CY20 RESULT UPDATE:

Revenue down 27% to Rs 2,176.8 crore
Net profit up 10% to Rs 453.4 crore
Ebitda down 14.8% to Rs 595.3 crore
Ebitda margin at 27.3% from 23.4%
Improvement in margins due to lower power, fuel and freight costs
Master Supply Agreement with ACC contributes to margin expansion
Sales volumes at 4.19 MT from 5.82 MT

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COROMANDEL INTERNATIONAL Q1FY21 RESULT UPDATE:

Revenue up 50.8% to Rs 3,213.2 crore
Net profit up 4 times to Rs 250.6 crore
Ebitda up 2.1 times at Rs 412.4 crore
Ebitda margin at 12.8% from 9.2%
Nutrient and other allied businesses revenue up 49% to Rs 2,807.2 crore
Crop Protection business revenue up 55% to Rs 420.2 crore
Expect good traction in the upcoming Kharif season

AARTI DRUGS Q1FY21 RESULT UPDATE:

Revenue up 34% to Rs 544.7 crore
Net profit more than triples to Rs 85.45 crore
Ebitda up 2.5 times to Rs 134.1 crore
Ebitda margin at 24.6% from 13.5%

MCX Q1FY21 RESULT UPDATE:

Revenue down 14% to Rs 73 crore
Net profit up 29% to Rs 56.4 crore
Ebitda down 20% to Rs 26.5 crore
Ebitda margin at 36.4% from 38.9%
Higher other income aids net profit
Other income up 92% to Rs 49.7 crore
Average daily turnover of commodity futures traded on the exchange fell 16% to Rs 23,129 crore
Market share in commodity derivatives space rose to 96.7% from 91.6% YoY.

TATA STEEL: UK Govt may inject nearly £900 Million and pick up an Equity Stake in Tata Steel UK

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HDFC: HDFC Ergo General Insurance’s Gross written premium down 12% to Rs 1,612.9 crore while net premium up 5% to Rs 1,023.7 crore. Net income grew 84% to Rs 138.4 crore, on a year-on-year basis.

Aviation Stocks: Government extends domestic flight restrictions until November 24

HDFC Bank: Aditya Puri Sells 74.2 lakh shares at a price of 1,135.94 per share. Mr Puri received 842.9 cr through this transaction.

Cipla: Gets DCGI Approval To Launch Favipiravir In India For COVID-19. Gets Nod For Launch Of Favipiravir In India Under The Brand Name Ciplenza.

CSB Bank ~ RBI allows SBI Funds to take up to 10% stake in bank

MGL: Mahanagar Gas increases CNG prices by Re 1 to Rs 48.95/kg

ET reports that RBI questions Axis Bank on Max Life deal.

Earnings Today: Bharti Infratel, Kotak Mahindra Bank, Tech Mahindra, V-Guard, Marico, Escorts, Bharat Electronics, Havells, India Cements, Orient Electric, Tejas Networks, United Spirits.