Markets likely to consolidate; ONGC, IRFC, Future group stocks in focus

Markets likely to consolidate; ONGC, IRFC, Future group stocks in focus

MUMBAI: Markets are likely to consolidate on Friday while trends in SGX Nifty suggest a flat opening of Indian benchmark indices. On Thursday, the BSE Sensex ended at 54,843.98, up 318.05 points or 0.58% and the Nifty was at 16,364.40, up 82.15 points or 0.50%.

Most Asian equity markets continued to ignore record highs hit elsewhere in the world and fell in early trading on Friday, though Australia bucked the trend.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.59%, having closed lower on each of the past three days.

Traders have been pointing to continued worries about the potential for new regulatory crackdowns in China and the fallout from the surging Delta variant of the new coronavirus in several countries in the region.

Japan’s Nikkei dropped 0.6%. Korea’s Kospi dropped 1.45%. Hong Kong fell 0.45%.

Overnight, MSCI’s gauge of stocks across the globe hit a new record high, and the Dow Jones Industrial Average and S&P 500 also closed at record highs for the third consecutive day.

Earlier, European stocks had equalled their longest winning streak since 2017, closing up 0.1% and extending gains for a ninth consecutive session.

Among key stocks Oil and Natural Gas Corporation, Grasim Industries, Apollo Hospitals, Indraprastha Gas, Hindustan Aeronautics, Petronet LNG, Indian Railway Finance Corporation, General Insurance Corporation of India, Godrej Industries and Sun TV Network, will announce June quarter earnings today.

Future group promoters, including Kishore Biyani and several group holding companies, have approached the Supreme Court against an order passed by the Delhi High Court directing to enforce the order of the Singapore-based Emergency Arbitrator.

Indian capital markets, both equity and debt, have shown a strong ability to provide financing and capital for businesses, and it is important for India to ensure the “sustained growth" of capital markets, said Uday Kotak, chairman of Kotak Mahindra Bank, at the Confederation of Indian Industry (CII) Annual Meeting 2021.

Data released by the National Statistical Office showed retail inflation eased to 5.59% in July from 6.26% in June while the Index of Industrial Production (IIP) grew at 5.7% month-on-month and 13.6% year-on-year.

The dollar held firm on Friday, staying near its highest level in four months against a basket of currencies as investors looked for more hints from the Federal Reserve on its plans to reduce monetary stimulus.

The dollar index firmed to 92.976, near Wednesday’s four-month high of 93.195.

The yield on benchmark 10-year Treasury notes was last 1.3506%, little changed from its U.S. close of 1.367% on Thursday.

Oil prices fell for a second straight day after the International Energy Agency warned that demand growth for crude and its products had slowed sharply.

(Reuters contributed to the story)

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Burger King, IRFC, ONGC, HAL, Eicher Motors, Ashok Leyland, ITC, Tata Steel, PFC stocks in focus

Equity markets are expected to continue with its positive momentum as the economic activities are expected to further pick up pace with the lockdown measures getting further relaxed. Image: Reuters

Nifty futures were trading flat on Singaporean Exchange, suggesting a cautious start for BSE Sensex and Nifty 50 on Friday. In the previous session, the 30-share index hit a record high of 54,874.10 and Nifty 16,375.50 in intraday. The market would react to India’s CPI inflation and IIP data which have come better than expected. Investors will also keep a close watch on first-quarter earnings, COVID vaccination pace, oil price and rupee movement against US dollar. “Equity markets are expected to continue with its positive momentum as the economic activities are expected to further pick up pace with the lockdown measures getting further relaxed. With earnings season being in the last leg, market would largely be tracking global cues for the direction,” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services, said.

Stocks to watch

ONGC, HAL, Burger King: BSE-listed companies such as Godrej Industries, Grasim Industries, NBCC (India), NHPC, Oil and Natural Gas Corporation, Hindustan Aeronautics Ltd, Indraprastha Gas, Inox Wind, Burger King India, Sun TV Network, Allcargo Logistics, Archies, D B Corp, Gayatri Projects, Glenmark Pharmaceuticals, Gujarat Mineral Development Corporation, GMR Infrastructure, Godfrey Phillips India, Indian Railway Finance Corporation, IL&FS Investment Managers, Inox Wind Energy, Jammu & Kashmir Bank, Jagran Prakashan, Mawana Sugars, Petronet LNG, SEAMEC, Sintex Industries, Suven Pharmaceuticals, and Suzlon Energy, will announce Apr-Jun quater earnings on August 13.

Eicher Motors: Eicher Motors reported a consolidated profit after tax of Rs 237 crore for the quarter ended June, riding on improved sales. The company had witnessed a loss of Rs 55 crore in the April-June period of 2020-21.

Ashok Leyland: Ashok Leyland on Thursday reported narrowing of its net loss to Rs 282 crore in the three months to June 2021. The Hinduja Group flagship company had posted a net loss of Rs 389 crore in the same period a year ago.

Aurobindo Pharma: Aurobindo Pharma reported a 1.68 per cent decline in its consolidated net profit to Rs 769.97 crore for the quarter ended on June 30, 2021, mainly on account of reduction in expenses.

ITC: ITC said it is planning to invest around $2 billion over the medium term for capacity expansion and setting up new plants across businesses and bringing in contemporary technology to upgrade product quality.

NMDC: NMDC reported a 499 per cent increase in profit after tax (PAT) for the April-June quarter of the current fiscal at Rs 3,193 crore as against Rs 533 crore in the same quarter last fiscal, thanks largely to a very low base.

Power Finance Corporation: PFC has reported a net profit of Rs 2,273.6 crore for the quarter ended June 30 on a standalone basis, recording a year-on-year (y-o-y) rise of 33.8% on the back of higher interest income and lower cost of funds.

Bharat Forge: Bharat Forge reported a consolidated net profit of Rs 153.65 crore for the June quarter compared to the loss of Rs 125.81 crore it posted in the June quarter of the previous fiscal.

Tata Steel: Tata Steel reported robust numbers for the quarter ended June 30 as its net profit soared on the back of a global rally in steel prices and improved performance in the European business.

IRFC Q1 Result Highlights: PAT rises YoY to 68 % at Rs 1,502 cr, revenue from operations up by 25% - Check details

Indian Railway Finance Corporation (IRFC) has posted profit growth of 68 per cent for Q1 FY22 at Rs 1,502 crore vis-a-vis Rs 892 crore in the same period of last year.

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Revenue from operations grew by 25 per cent to Rs 4,582 crore as against Rs 3,669 crore in the same period.

Net worth of the company at the end of Q1 FY22 stands at Rs 37,417 crore, up by 20 per cent as compared to Rs 31,193 crore reported in Q1 FY21.

Total borrowings at Rs 3. 28 lakh crore are up by 40 per cent as against Rs 2.34 lakh crore. Assets under management to end of Q1 FY22 were Rs 3.66 lakh crore.

The dedicated market borrowing arm of Indian Railways continues to raise funds at competitive rates and terms from domestic and overseas financial markets which has helped keep its cost of borrowing low.

Amitabh Banerjee, Chairman and Managing Director, said the consistently strong financial results of IRFC tell the tale of immense growth in railway infrastructure in the country.

“In view of massive railway infrastructure investment envisaged as per National Rail Plan 2030, IRFC can foresee a sustained growth in revenue and profitability in the coming years,” said Banerjee in a statement.