Markets posted weekly losses of less than 0.5% on back of sharp surge in Japanese yen but Indian markets managed to decouple to a larger extent despite selling in global markets. With USDJPY drifting below 150, we expect major unwinding in carry trades which eventually spreads contagion effect in the Indian markets. For Nifty, the crucial support was placed at 24,700 and below same, immediate reaction is expected towards 22,500. Presently, Next Fund Nifty 50 linked ETF which is actively traded in Tokyo has already formed broadening wedge breakdown which projects 20% slide in the near term. Hence it may be construed that the Japanese investors may be the first to exit Indian equities.
Results Today – Bharti Airtel, Marico, ONGC
Nifty 50 Chart
Stocks to watch
Positive Read through
- Infra Stocks – Cabinet approves 8 new highway projects with an investment of Rs 500 bn Bharat Forge – North America class 8 truck orders at 12,400 units, at A 15-month low.
- Power Grid – Emerges as successful bidder for inter-state transmission line in Rajasthan SBIN – Fresh slippages at Rs 79.03 bn Vs Rs 38.67 bn QoQ.
- Ashoka Buildcon – Lowest bidder for projects of Rs 12.80 bn from MMRDA United Spirits/UBL – India plans tougher ad curbs on liquor makers such as Carlsberg, Diageo, Pernod.
- SBI – NII grew 5.7 pct, GNPA at 2.21 pct vs 2.24 pct QoQ Gland pharma – USFDA issued 3 observations to Hyderabad unit.
- Infosys – I-T department closes pre-show cause notice for Rs. 38.98 bn tax demand for FY18 LIC Hsg Fin – Q1 disbursements down 29.2 pct, NIM at 2.76 pct vs 3.15 pct QoQ.
- Titan – Posted Q1 in-line with muted expectations, jewellery EBIT margin up 20 bps YoY JK Tyre – Sales down 2.1 pct, margin improves 140 bps YoY.
- Britannia – Sales & volume in-line, rural market share grows faster than urban Sheela Foam – EBITDA fell 22.9 pct, margin at 7.4 pct vs 12 pct YoY.
- Divi’s – Earnings miss estimates, commentary positive, maintains growth guidance Dalmia Bharat Sugar – EBITDA slipped 6.1 pct, margin at 11.6 pct vs 14.2 pct YoY.
- Ambuja – To invest Rs. 16 bn to set up 6 MTPA cement grinding unit in Bihar Dhampur Sugar – EBITDA tumbled 71 pct, margin at 4 pct vs 10.3 pct YoY.
- Tata Power – Gets Lol from PFC Consulting to acquire SPV Paradeep Trans for Rs. 2.56 bn Shree Renuka – Losses expand to Rs. 1.66 bn, EBITDA down 10 pct YoY.
- M&M Fin – July disbursement up 3 pct, collection efficiency at 95 pct vs 96 pct YoY Nucleus Soft – EBITDA fell 54 pct, margin at 13 pct vs 26 pct QoQ.
- JSW Steel – To surrender mining lease of 1 out 4 iron ore blocks in Odisha won in 2020.
- Medplus – Double-digit growth continues, margin up 70 bps YoY.
- Affle – Steady quarter, profit jumped 31 pct & sales 28 pct YoY.
- Amara Raja – Posted double-digit sales growth, margin expanded 30 bps YoY.
- Bank Of India – NIIgrew 6% YoY, GNPA at 4.62 pct Vs 4.98 pct QoQ.
Negative Read through
- Bharat Forge – North America class 8 truck orders at 12,400 units, at A 15-month low.
- SBIN – Fresh slippages at Rs 79.03 bn Vs Rs 38.67 bn QoQ .
- United Spirits/UBL – India plans tougher ad curbs on liquor makers such as Carlsberg, Diageo, Pernod.
- Gland pharma – USFDA issued 3 observations to Hyderabad unit.
- LIC Hsg Fin – Q1 disbursements down 29.2 pct, NIM at 2.76 pct vs 3.15 pct QoQ.
- JK Tyre – Sales down 2.1 pct, margin improves 140 bps YoY.
- Sheela Foam – EBITDA fell 22.9 pct, margin at 7.4 pct vs 12 pct YoY.
- Dalmia Bharat Sugar – EBITDA slipped 6.1 pct, margin at 11.6 pct vs 14.2 pct YoY.
- Dhampur Sugar – EBITDA tumbled 71 pct, margin at 4 pct vs 10.3 pct YoY.
- Shree Renuka – Losses expand to Rs. 1.66 bn, EBITDA down 10 pct YoY.
- Nucleus Soft – EBITDA fell 54 pct, margin at 13 pct vs 26 pct QoQ.
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