Market Update for 04/09/2020: | Street-fluence

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WORLD MARKET

  • Shares from Sydney to Shanghai slipped, though losses were smaller than the 3.5% slide in the S&P 500 Index.
  • The Nasdaq 100 sank more than 5%, its largest decline since March, and futures fell over 1%, signalling the retreat could extend for a second day ahead of the August jobs report.
  •  Volumes in puts and especially calls has been exploding in recent weeks, much of it in the tiny lot sizes denoting individual traders.
  • President Xi Jinping said nothing will come between the Chinese people and the Communist Party, setting at a difficult moment in U.S.-China relations. 
  • While data Thursday showed applications for jobless claims fell last week, U.S. investors may need evidence of a fuller economic recovery after a 60% run-up in the S&P 500 since its March lows.

STOCK WISE NEWS:

Banking Stocks: Supreme Court has adjourned hearing in the loan moratorium case till September 10. Accounts not declared as NPAs as on August 31 shall not be declared so until further orders.

Vodafone Idea: Clarified on the news of Verizon, Amazon may invest over $4 billion on the company stating that as a corporate strategy, the company is evaluating opportunities and currently there is no proposal as reported by media that is being considered by the board. The board meeting to discuss raising of funds to be held today.

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Silver Lake is in talks to invest about $1b in Reliance Retail at a valuation of about $57b, FT reports, citing unidentified people with direct knowledge of the matter.
(Silver lake also invested in Reliance Jio)

Infosys: The company acquires US-based product design and development firm, Kaleidoscope Innovation, for $42 million. Infy will be able to expand its engineering services portfolio, especially in medical devices, consumer and industrial markets across the US

The government has imposed an anti-dumping duty on Ciprofloxacin Hydrochloride imports from China for six months. A levy of $0.9-$3.49 per kg has been imposed on the raw material used in making antibiotics. Aarti Drugs, Aurobindo Pharma, Dr Reddy’s Laboratories, Neuland Laboratories and Sun Pharma are some of the producers of the antibacterial drug in India.

KEC: Bags new orders worth 1401cr across businesses

Delhi bars allowed to resume service from 9 Sept. mandatory for people entering to wear masks, 50% seating capacity and no standing customers will be served.

TATA MOTORS: Government Body EESL To Buy 250 EVs From Tata Motors & Hyundai India.

Hindustan Aeronautics: Government proposes to offer 5.02 lakh shares at Rs 950.95 per share to the company’s employees. The offer for sale will remain open from September 4-9.

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NSE decides not to Levy penalty on client margin for short/non-collection and reporting in Cash and derivatives segment up to 15 Sept 2020.

RESULT CORNER

Jubilant Ind Q1FY21

  • Net Loss Of 3.1 Cr Vs Profit Of 9.6 Cr
  • Revenue Down 37.9% At 94.3 Cr Vs 151.8 Cr
  • EBITDA Down 77.5% At 3.8 Cr Vs 16.9 Cr
  • EBITDA Margin At 4% Vs 11.1%

BROKERAGE UPDATE

CLSA On Tata Motors

  • Buy rating maintained Price target raised to Rs 220 from Rs 135
  • Sequential volume recovery and cost cuts may drive a turnaround in free cash flows
  • Cost-Savings focus starting to be reflected in JLR’s financials
  • Forecasts are lower than guidance and AGM commentary
  • Raise FY21-23 Ebitda estimates by 1-6%
  • Raise free cash flow estimates to Rs 22,000 crore from Rs 16,500 crore Risks: A sudden slowdown in recovery trajectory and a significant rise in investments.

Ambit On Page Industries

  • Sell rating maintained Price target raised to Rs 16,200 from Rs 15,500
  • Higher price points, dominance in male innerwear category, and benefits of leveraging of male innerwear distribution are three long-term challenges
  • Street’s expectations of 21-22% margins may not pan out due to higher incentives and employee costs
  • Expectations on revenue growth also needs to adjust to new normalised 10-12%
  • Valuations are expensive
Also Read on FinMedium:  Valuation and its Myths – Investometry

Macquarie On Indian I.T.

  • Market share of large-cap companies has scope to rise further driven by improving capabilities
  • Cloud adoption, customer experience enhancement and core transformation to drive growth ahead
  • Introduce a five-factor ranking framework for large-cap companies
  • TCS and Infosys stand out compared to the rest
  • Raise FY22-23E EPS estimates by up to 8%

CITI on Jubilant Foods

  • Buy, TP raised to Rs 2565 from Rs 1755.
  • The company is Well Placed Given Market Tailwinds and Bottom-Up Initiatives
  • A few things that are important from a valuation perspective
    a) Changes in earnings (FY22-23E explicit EPS est raised 16-20%
    b) Forward to Sept-22E
    c) Slightly lower WACC

Earnings today: Jubilant Life, Repco Home Finance

FII bought 8 cr
GOLD- 1945
CRUDE- 43.6
DXY- 92.7



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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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