Market Watch: Aditya Agarwala, YES Securities
– Buy Escorts at current levels and look for a target of Rs 1,250 on the upside, with a stop loss at Rs 1,190 to about Rs 1,185 on the downside.
– Buy Ajmera Realty at current levels and look for a target of Rs 170 on the upside, keep a stop loss of Rs 145 on the downside.
EFC approves PLI plan for speciality steel; ministry to move cabinet soon
The production linked incentive (PLI) scheme for the speciality steel manufacturing is now a step away from cabinet approval, as the expenditure finance committee has cleared it. CNBC-TV18 has learnt that the Ministry of Steel is in the process of finalising cabinet note with tweaked eligibility criteria, incentive slabs, and other conditions. The PLI scheme, which has an outlay of Rs 6,322 crore, is being considered to plug import of speciality steel in a bid to boost manufacturing and enhance export capabilities in this segment of steel making. Read here.
Credit costs for PSU banks to moderate in FY22, says Morgan Stanley; upgrades Bank of Baroda
The state-run lenders will see a tussle between higher restructured loans and lower NPAs in FY22, while their credit costs are expected to moderate depending upon the duration of the second wave of COVID-19, brokerage firm Morgan Stanley said in a report. CLSA expects moderation in FY22, given lower corporate NPLs, moderation in retail slippages, and modified ECLGS lending scheme, which allows extension of interest-free period. Read here.
Sterlite Technologies | The company has announced a partnership with Vocus Group, a specialist fibre and network solutions provider in Australia. This deal strengthens Sterlite Technologies’ presence in the Australian market, helping network creators deploy high capacity nationwide networks faster.
Akhil Chaturvedi, Head of Sales & Distribution, Motilal Oswal Asset Management Company
This is the third month of net positive flows, with improvement in net sales at 10k crore and positive across all categories. DII’s and retail investors have kept the markets buoyant in the last three months when FIIs have been net sellers, therefore the Indian markets are more broad-based now with more participants thereby reducing volatility and vulnerability to sentiments of FIIs alone. Broadly, we understand from the first wave of Covid that these waves will be short-lived and eventually economic activities will revive giving a boost to market sentiments. Therefore buying on dips always makes sense and which is what reflects in the mutual funds’ sales numbers quite positively.
Varroc Engineering | The company has signed a Memorandum of Understanding (MoU) with Candera GmbH for a strategic association to integrate the Human Machine Interface (HMI) technology in Varroc’s Thin-Film-Transistor (TFT) Instrument Cluster.
See pharma upcycle for next 2-3 years, expect mid to high teens earnings growth: Morgan Stanley
As far as the pharmaceutical sector is concerned, what we are looking at is next two-three years of big earnings upcycle,” said Sameer Baisiwala, India Pharma and Property Analyst at Morgan Stanley, in an interview with CNBC-TV18. “It could be mid-teens to high-teens sort of earnings growth,” he added. He expects two to three large launches in the US market including inhalers. “For the last three years, Indian companies haven’t had any major launches in the US. This is going to change and is already underway. We have seen two-three large launches and there are many more which are going to come over the next two-three year period. Some of the notable ones are inhalers like Spiriva by Lupin or Revlimid,” he opined. Read here.
Ratnamani Metals Q4FY21: Mgmt says enquiries picking up after COVID slowdown
Ratnamani Metals Q4FY21 margins are at a multi-year high supported by better realisations. The company also announced the FY21 dividend at Rs 14 per share. Speaking to CNBC-TV18 about the quarterly performance and the road ahead, Manoj Sanghvi, Business Unit Head of the company said that business has been slow due to COVID-19, but has seen a pickup in enquiries in the last few days. “Things have been slow because of COVID, but the flow of enquiries have increased. If you see Q4 of last year, in the stainless division particularly, we booked close to Rs 175 crore. We expect in the first quarter of this year we will be close to Rs 250 crore and we would maintain that strike rate quarter-on-quarter (QoQ),” he said. Read here.
Just In | LIC Chairman MR Kumar’s term extended till March 13, 2022.
Will tread cautiously on term business given COVID risk, says HDFC Life’s Vibha Padalkar
HDFC Life Insurance will tread cautiously on term business, given the COVID risk, Vibha Padalkar, MD and CEO, told CNBC-TV18. She said, “The sum assured is a bit of an outcome, and we have to remember that we are against a pandemic, so the sum assured part- especially what pulls it up is the term business, because typically against 10x sum assured you would have anything between 200x and 400x sum assured. So, we will tread cautiously there.” On business, Padalkar said, “As compared to the industry, HDFC Life’s numbers on a standalone basis, grew by 17 percent individually PE and consequently our market share also grew from 18.5 percent to 20.3 percent. On an overall basis for the industry, the growth did slow down, so private slowed down and degrew by 5 percent, whereas the overall industry degrew by 9 percent. So, 17 percent, against what we have gone through as a nation, is reasonably in a satisfying position and also relative to peer set.” Watch here.
May #MFData | Month-on-month
➡️ETF inflow at Rs 5,379.8 cr Vs Rs 2,537 cr inflow
➡️Credit risk inflow at Rs 258.3 cr Vs Rs 157.4 cr outflow
➡️Total debt scheme outflow at Rs 44,512 cr Vs Rs 1 lk cr inflow
— CNBC-TV18 (@CNBCTV18Live) June 9, 2021
TeamLease Services Q4FY21 | The company reported a net profit of Rs 18.9 crore as against a loss of Rs 29.4 crore in the year-ago period. Revenue rose 0.8 per cent to Rs 1,340.5 crore from Rs 1,330.3 crore, YoY. EBITDA increased 30.5 percent to Rs 26.1 crore from Rs 20 crore, while EBITDA margin improved to 2 per cent as against 1.5 percent, YoY.
Looking at FY22 as a growth year over FY21, says L&T’s R Shankar Raman
Larsen and Toubro (L&T) has an order book of around Rs 3.3 lakh crore that provides good visibility. Further, the management has indicated growth of low to mid-teens for FY22. However, they do caution that there are many unknowns ahead such as COVID, inflation, technologically challenging projects etc., R Shankar Raman, Whole Time Director & CFO, L&T, discussed the outlook. “We are looking at FY22 as a growth year over FY21,” he said in an interview with CNBC-TV18. “We do expect to benefit from the large order book that we have started the current year with. We expect to do better on a quarter-on-quarter (QoQ) basis as compared to the last year, same quarter,” he added. “By July, we expect things to inch back to normal, and like last year, we will again have a year of two halves – the second half being a stronger period than the first half,” he shared. Read here.
May Mutual Fund Data | Equities see inflows for a third straight month with May’s inflow of Rs 9,235.5 crore is at a 14-month high i.e. highest since March 2020.
— CNBC-TV18 (@CNBCTV18Live) June 9, 2021
JUST IN: El Salvador becomes first country to adopt Bitcoin as legal tender
Max Financial Services hits 52-week high after Q4 earnings
Max Financial Services share price gained over 3 percent in early trade on Wednesday to hit a fresh 52-week high of Rs 1,050.25 apiece after the company reported a multi-fold jump in consolidated net profit for the quarter ended March 2021. The company posted a net profit of Rs 70 crore for the fourth quarter of fiscal 2021 as compared to a net profit of Rs 6.7 crore in the same period a year ago. Global brokerage firm CLSA said that Max Financial Services has outperformed its peers in FY21 on annualised premium equivalent (APE) growth (19 percent YoY) and protection growth and VNB growth. With a VNB surprise and a rollover to Jun-22, CLSA reiterates a buy rating and raised its target price to Rs 1,350 per share from Rs 1,225 earlier. Max Financial Services remains CLSA’s preferred insurance picks. More here
Welspun Corp shares rally 6% to hit 52-week high on receipt of orders worth Rs 1,725 cr
The share price of Welspun Corp rallied 6 percent to hit a fresh 52-week high of Rs 165.00 after the company announced receipt of multiple orders of approximately 164 KMT valuing close to Rs 1,725 crore. In an exchange filing, Welspun Corp said these orders include reinstatement of an offshore sour pipes supply contract (270 km / 87 KMT) in Australia for the Barossa Offshore Development Project. Most of the orders (including Barossa Project) will be executed from the company’s facilities in India. With these orders, the company’s order book stands at 525 KMT valued at approximately Rs 4,800 crore, after considering execution up to May 2021, it said. More here
Engineers India tumbles over 5% on weak Q4 earnings
Engineers India Ltd (EIL) share price fell over 5 percent on Wednesday after the public sector undertaking (PSU) reported a weak set of numbers for the March quarter. The navratna company reported a 79.2 percent decline in its consolidated net profit to Rs 24.93 crore in Q4 FY21 as against Rs 119.69 crore in Q4 FY20. This was largely on the back of an exceptional write-off worth Rs 154.96 crore on account of shortfalls in its PF corpus due to defaults by some of the PF trusts it had invested through. The stock fell as much as 5.6 percent to its day’s low of Rs 82.90 per share on the BSE.
Crompton Greaves share price rises 7% after block deal
Crompton Greaves Consumer Electrical share price jumped 7 percent intraday on June 9. The stock rallied as 3.37 crore shares changed hands in a block deal. Earlier this month, rating agency CRISIL Limited reaffirmed the credit ratings of Crompton Greaves Consumer Electricals Limited. The credit rating agency has reaffirmed AA+ rating with a stable outlook on Rs 300 crore and Rs 180 crore programs of non-convertible debentures (NCDs).
Birlasoft shares surged 12% to hit 52-week high after it partnered with Regulativ.ai to co-develop AI-led cybersecurity assessment platform
Shares of Birlasoft jumped 12 percent to hit its 52-week high on Wednesday after the firm partnered with Regulativ.ai to co-develop AI-led cybersecurity assessment platform. This will mainly be for global banking, financial services, and insurance customers. Digital transformation has unleashed a high volume of cyber threats, making cybersecurity and compliance a top priority for CXOs, and making it critical for businesses to ensure their cyber-regulatory compliance roadmap is in place, Birlasoft said in a press release. The CK Birla Group believes that the Regulativ.ai platform fits well with the company’s focus to grow the banking, financial services, and insurance segments, where cybersecurity is a key focus.
Sterlite Tech says Vocus Australia selects co’s Opticonn Solutions to expand fibre network
Sterlite Tech says Vocus Australia selects co’s Opticonn Solutions to expand fibre network pic.twitter.com/3qUTHzYEFS
— CNBC-TV18 (@CNBCTV18Live) June 9, 2021
Bitcoin falls to 3-week low on IRS seeking approval for tighter reporting rules
The price of Bitcoin declined to a three-week low on Wednesday, following a brutal sell-off among digital currencies as investors grew cautious after the US Internal Revenue Service (IRS) called for tighter reporting rules on crypto transfers. IRS chief Charles Rettig on Tuesday said that Congress needs to provide clear statutory authority for the tax agency to collect information on cryptocurrency transfers valued over $10,000 that largely go unreported, Reuters said. Bitcoin, the world’s largest cryptocurrency, bottomed at $31,277 at 12 am on Wednesday, a 12 percent drop from its earlier level of $35,614. This was the lowest price level since the May 19 shakeout that had dropped it to close to $30,000 for the first time since January. More here
Market Watch: Manoj Murlidharan, Religare Broking
– Buy Mindtree at Rs 2,430-2440 with a stop loss at Rs 2,400 for a target of Rs 2,510.
– Buy Alkem Lab at Rs 3,160 with a stop loss at Rs 3,120 for a target of Rs 3,230.