Market Update for 03/08/2020: | Street-fluence

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WORLD MARKET

  • On Friday, U.S. stocks extended their July rally aided by a surge in technology shares.
  • American lawmakers are continuing talks over a virus-relief package.
  • A senior Federal Reserve official on Sunday urged Congress to act to support those laid off due to the pandemic and suggested a fresh lockdown.
  • The Trump administration will announce measures shortly against “a broad array” of Chinese-owned software deemed to pose national-security risks, U.S. Secretary of State Michael Pompeo said. The comments suggest a possible widening of U.S. measures beyond TikTok, the popular music-video app owned by ByteDance, one of China’s biggest tech companies.
  • In late-night negotiations with congressional Democrats on Thursday, White House officials offered a short-term extension of the popular unemployment benefit paying out-of-work Americans $600 per week, a CARES Act provision that formally expired on Friday. But House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer rejected the offer.

WORLD EVENTS

  • Federal Reserve presidents speaking on the economy Monday: St. Louis Fed President James Bullard, Chicago Fed President Charles Evans and Richmond Fed President Tom Barkin.
  • Australia interest rate decision due Tuesday.
  • Reserve Bank of India and Bank of England rate decisions due Thursday.
  • Dallas Fed President Robert Kaplan discusses the U.S. economy at Thursday event.
  • July U.S. employment report expected Friday.
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STOCK WISE NEWS

DIXON TECH AND AMBER ENT: Government’s PLI scheme for 5 years to boost local production, gets commitments to make mobile phone, parts worth Rs11.5 lakh cr. Domestic value addition will grow from to 35-40% from 15-20%

Bandhan Bank: Promoter Bandhan Financial Holdings intends to sell 33.7 crore shares in a block deal as per the term sheet. The floor price of Rs 311 per share is a 9.9% discount to Friday’s closing price. The promoters intend to raise over 10,000 crore or over $1.4 billion from the stake sale.

MOIL: Reduces prices of all grades of Ferro, SMGR grades (Mn30% & Mn25%), Fines and Chemical grades by 15%

Coal India ~ July Numbers

  • Production down 3% to 37.36 mt v/s 38.51 mt
  • Offtake down 6.9% to 43.39 v/s 46.59 mt

AUTO SALES FOR THE MONTH OF JULY:
(Actual v/s expected)

  • MARUTI- 108,064 v/s 105,000
  • HEROMOTO- 514,509 v/s 520,000
  • M&M Auto- 25,678 v/s 28200
  • M&M Tractor- 25,402 v/s 22,500
  • TVS Motor- 252,744 v/s 205,000
  • Eicher- 40,334 v/s 39,000
  • ESCORTS- 5322 v/s 5500

RESULT UPDATE:

Tata steel long products Q1FY21, YoY

  • Sales down 7.3% to Rs 653.1 v/s Rs 704.6 cr
  • EBITDA down 65.6% to Rs 8.3 v/s Rs 24.1 cr
  • EBITDA margins down to 1.3% v/s 3.4%
  • Loss of Rs 131.3 v/s loss of Rs 73.9 cr
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Thyrocare Q1FY21, YoY

  • Revenues down 52% to 52.7 v/s 109.7 cr
  • EBITDA down 81.5% to Rs 8.5 cr v/s Rs 45.6 cr
  • EBITDA margins down to 16% v/s 41.6%
  • Profit down 99.2% to 0.23 cr v/s Rs 27.47 cr

Tata chemicals Q1FY21, YoY

  • Sales down 9.1% to Rs 2348.2 v/s Rs 2584 cr
  • EBITDA down 30.1% to Rs 359.8 v/s Rs 514.9 cr
  • EBITDA margins down to 15.3% v/s 19.9%
  • Profit down 67.2% to Rs 74.2 v/s Rs 226.3 cr

BROKERAGE UPDATE :

SUN PHARMA

  • CLSA Buy Target raised to 660 from 560
  • HSBC Raises Target to 585 to 485
  • Macquarie raised target to Rs 578 from Rs 516

CONCALL Highlights :
– Can expect breakeven in some products from FY22 in the speciality portfolio
-Co continues to update US FDA on Halol plant with remediation almost complete

UPL:
– CLSA Q1 Results Above Estimate Driven By Strong Growth In India & Rest Of The World
– MS Co Tgts Rev & EBITDA Growth Of 6-8%, 10-12%; We Expect 6% & 8%

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SBI :

– CLSA Increase FY22/23 Estimates By 40%/6% & Expect RoE Of 8.5%/11% In FY22/23
– Nomura Banks Should Be Able To Navigate Current Cycle Well
– MS Raise FY21/22/23 EPS Estimates By 10%/5%/5%

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EARNINGS TODAY: Exide, MRPL, Kansai Nerolac, KPIT Tech, VST Ind, Dhanlaxmi bank, Solara pharma, Bank of India, Wheels India, BSE India

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FII Sold- 959 cr
GOLD- 1979
DXY- 93.45 ( 1 dollar gain from Friday)
CRUDE- 43.27



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Akshada Deo
Akshada posts the daily market updates in a summarized format. Stock Market, Literature, Music, and Design are her passions.
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