Bank of Baroda shares fall 3% on weak Q1 earnings
The share price of Bank of Baroda declined over 3 percent in the early trade on Tuesday after the state-run lender posted a net loss of Rs 864 crore for the quarter ending June, as provisions rose by 71 percent over last year. The bank had posted a profit of Rs 710 crore in the same quarter last year. The stock fell 3.08 percent to an intraday low of Rs 47.05 per share on the BSE. Read here what brokerages say
ICICI Bank’s QIP gets subscribed over 4 times; large investors line up to participate
ICICI Bank’s Qualified Institutional Placement (QIP) issue saw strong demand from investors, who have placed bids worth over 4 times the issue size, four people directly involved in the deal told CNBC-TV18. The Rs 15,000 crores QIP issue opened on August 10 and was closed within 24 hours after it received bids of almost Rs 62,000 crores, or 4.1 times the offer size, as per people in the know. The bank’s issuance committee had fixed the floor price of the issue at Rs 351.36 per share, representing a 3.5 percent discount to its last closing price. This is the minimum price at which investors looking to participate in the QIP could have placed bids. The bank has offered shares at an indicative price of Rs 355-358 apiece according to the terms of the transaction, the people quoted earlier said.
Manishi Raychaudhuri of BNP Paribas says he is OVERWEIGHT on India
Shree Cement shares fall 5% post Q1 results
Shares of Shree Cement shed nearly 5 percent on Tuesday after the company’s net profit fell 13.5 percent to Rs 330 crore in the June quarter. The company posted a profit of Rs 380 crore in the year-ago quarter. The sentiment was also weighed by bearish views by brokerages like CLSA and Jefferies. The stock fell as much a 4.7 percent to Rs 21,335 per share on BSE in intraday deals. Global brokerage house CLSA maintained a ‘sell’ call on the stock with a target at Rs 20,300. Shree Cement’s results indicate the company may have to forego pricing to maintain higher growth, CLSA believes.
Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking Ltd
“ICICI Bank Ltd on Monday launched a qualified institutional placement (QIP) offering to raise as much as Rs 15,000 crore at an indicative price of Rs 355-358/share. We believe this fundraising in this environment would be positive for ICICI bank. At base price Tier I to increase approx. 200 bps, net worth to gain 12.6%, and Book value to increase by 5.8%. In uncertain times adequate capital adequacy (CAR) will provide comfort to investors. Currently, ICICI Bank trades 1.1x FY22E ABV which is a lower valuation compared to the historical average. Lower valuation, increase in CAR and healthy performance by Insurance and AMC Business would be positive for ICICI Bank. Key to monitorable here on will be Moratorium percentage of the loan book at the end of Morat 2 in August 2020.”
Buzzing | Titan Company stock price falls over 4% after weak Q1 earnings
Titan Company stock price fell over 4 percent in the early morning trade on Tuesday after the company reported a weak set of numbers for the quarter ended June hit by the coronavirus-induced lockdown.The shares fell as much as 4.58 percent to Rs 1,057.05 on the BSE.
Titan Company reported a standalone net loss of Rs 270 crore in the first quarter of fiscal 2021 as against a net profit of Rs 371 crore in the year-ago period. Revenue during the quarter declined 62.3 percent to Rs 1,862 crore from Rs 4,939 crore, YoY.
Operating performance weakened as the company registered an EBITDA loss of Rs 246 crore in Q1FY21 as against EBITDA gain of Rs 565 crore in Q1FY20.
Technical View | After crossing the hurdle of 11,250 we have moved swiftly to over 11,350 upon opening itself. We should be able to achieve 11,400 and then 11.500 in this intermediate upward rally. The Nifty support continues to be at 11,100, says Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments.
Gold dips on stronger dollar; Sino-US trade spat in focus
Gold prices fell on Tuesday, weighed down by a stronger dollar as investors focused on the fiscal stimulus plan in the United States and escalating US-China tensions ahead of key trade talks later this week. Spot gold was down 0.3 percent at $2,021.32 per ounce by 0031 GMT. US gold futures eased 0.3 percent to $2,033.60. The dollar index rose 0.1 percent to hold near a one-week high against its rivals, making gold more expensive for holders of other currencies. More here
Bank of Baroda is targetting a loan growth of 7-8% in FY21, management says
Market Watch: Dipan Mehta, Director, Elixir Equities on Titan
“My view on Titan has been negative for past several weeks and numbers which came out were very disappointing. Although the management is optimistic that in Q3-Q4 they will get back to normalcy, I don’t see that kind of visibility. If you see at the ground level, I think that nothing is normal in this country. The consumer sentiment has been hit very badly. Apart from the larger companies, most of the small and medium enterprises are bleeding at this point of time and lot of professionals are worried about their increments and jobs as well. In this kind of a consumer spending environment, I don’t think a discretionary spending company like Titan can do well and considering at what level it is trading at, there is hardly any margin of safety. Maybe these results could be a bit of an eye-opener. You could see longer-term compression of the P/E multiples of Titan as well. There are a lot of positives going for the company in terms of higher market share, gold prices rising and everything but end of the day it is just a bit too expensive and I would be looking at exiting at these levels.”
Top Sensex gainers and losers at opening
Opening Bell: Sensex, Nifty open higher led by financials
Indian indices opened higher on Tuesday led by gains in financials heavyweights like ICICI Bank, HDFC, HDFC Bank, and Kotak Bank. At 9:17 am, the Sensex was trading 294 points higher at 38,476 while the Nifty rose 72 points to 11,342.
Oil firms on US stimulus hopes, Asian demand recovery
Crude oil gained more ground on Tuesday, with prices underpinned by expectations of US stimulus and a rebound in Asian demand as economies reopen. Brent crude added 7 cents, or 0.2 percecnt, to USD 45.06 a barrel, as of 0027 GMT. West Texas Intermediate US crude rose 14 cents, or 0.3 percecnt, to USD 42.08 a barrel. “Crude oil gained amid signs of further stimulus measures,” ANZ said in a note. Read More
Axis Bank raises Rs 10,000 crore through Qualified Institutions Placement
Private sector lender Axis Bank has raised Rs 10,000 crore via Qualified Institutions Placement (QIP). The QIP issuance was done at a price of Rs 420.10 per equity share, a discount of 5 percent to the floor price of Rs 442.19 per share. The bank had announced the opening of its QIP last week to raise funds to enhance its capital adequacy in accordance with regulatory requirements, its growth strategy, addressing risks emanating from the Covid-19 pandemic and for general corporate purposes. The fund raising was approved by the shareholders of the bank at the 26th Annual General Meeting held on July 31, 2020. More here
Titan Company reports net loss of Rs 270 crore in Q1
Titan Company reported a standalone net loss of Rs 270 crore in the first quarter of fiscal 2021 as against a net profit of Rs 371 crore in the year-ago period. CNBC-TV18 analysts’ poll had estimated a net loss of Rs 175 crore. Revenue during the quarter declined 62.3 percent to Rs 1,862 crore from Rs 4,939 crore, YoY. The company reported an EBITDA loss of Rs 246 crore in Q1FY21 as against EBITDA gain of Rs 565 crore in Q1FY20. More here
List of earnings you need to watch out for today
Here are some more global cues from this morning & overnight
IndiGo to raise up to Rs 4,000 crore via QIP
IndiGo’s parent company InterGlobe Aviation on Monday said it will raise up to Rs 4,000 crore through a qualified institutional placement (QIP). The aviation sector has been hit hard due to travel restrictions amid the coronavirus pandemic. Consequently, IndiGo has cut salaries of senior employees and fired 10 per cent of its workforce during the last few weeks. InterGlobe Aviation informed the BSE that its board of directors has approved “the raising of funds for an aggregate amount of not exceeding Rs 4,000 crores through an issue of equity shares by way of qualified institutional placement.” Read more
Here’s a look at CNBC-TV18’s top stocks to watch out for on August 11
ICICI Bank: The bank has set the floor price at Rs 351.36 per equity share for its QIP which opened on August 10. A decision on the final issue price and allotment will be taken on August 14.
Bank of Baroda: The state-run lender reported a Q1FY21 loss at Rs 864.3 crore as against a profit of Rs 709.6 crore, YoY. Net interest income (NII) rose 4.91 percent to Rs 6,816 crore from Rs 6,497 crore, YoY. Asset quality improved marginally. The bank has also reduced overnight MCLR by 15 bps to 7 percent w.e.f. August 12.
Titan Company: The company posted a net loss of Rs 270 crore in Q1FY21 as against a profit of Rs 371 crore in the year-ago period. Revenue declined 62.3 percent to Rs 1,862 crore from Rs 4,939 crore, YoY. The company reported an EBITDA loss of Rs 246 crore in Q1FY21 as against EBITDA gain of Rs 565 crore in Q1FY20.
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First up, here is quick catchup of what happened in the markets on Tuesday
The benchmark equity indices, Sensex and Nifty ended off day’s high Monday, contributed by the gains in pharma, auto and financial stocks. Broader markets outperformed the benchmarks, with NiftySmallcap100 and Nifty Midcap100 indexes closing over a percent higher. Nifty Pharma index gained the most and ended 5.4 percent higher followed by Nifty IT and Nifty Auto. Cipla, L&T, M&M, Tata Motors and Sun Pharma were the top Nifty50 gainers. While, selling in heavyweights such as Reliance Industries, Bajaj Finance, Maruti Suzuki, BPCL among others dragged Nifty below 11,300 level.
Welcome to CNBC-TV18’s Market Live Blog
Good morning, readers! I am Pranati Deva the market’s desk of CNBC-TV18. Welcome to our market blog, where we provide rolling live news coverage of the latest events in the stock market, business and economy. We will also get you instant reactions and guests from our stellar lineup of TV guests and in-house editors, researchers, and reporters. If you are an investor, here is wishing you a great trading day. Good luck!