Stocks in Focus on July 28: Nestle, Aviation Stocks to IRCTC; here are expected newsmakers of the day
Stocks in Focus on July 28: IRCTC, Nestle, IndusInd Bank, IDFC First Bank, RBL Bank, etc. are expected newsmakers throughout the intraday trade session.
Stocks in Focus on July 28: Domestic stocks markets ended with robust gains on Tuesday, July 28, 2020, amid broad-based buying support. The barometer index, the S&P BSE Sensex rallied 558.22 points or 1.47% at 38,492.95. The Nifty 50 index added 168.75 points or 1.52% at 11,300.55. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Wednesday, July 29, 2020. List of such five stocks:
Triggers: There are certain events, like results today, Cabinet Meet, PM Modi, US Fed, Mindspace REIT IPO, Ex-dividend, AGM, which can create positive/negative reactions in the markets. Find them in detail:
Results Today: Maruti Suzuki, Dr Reddy, Bharti Airtel, Colgate, Manappuram Finance, TVS Motor, Indigo, Sagar Cements, SIS, GSK Pharma, Chambal Fertiliser, Heritage Foods, Navin Fluorine, Mahindra Lifespaces, Carborundum Universal, CEAT, Viceroy Hotels (Q4FY20), Pricol (Q4FY20), Sasken Tech, RVNL (Q4FY20), JK Paper, Snowman Logistics, Genus Power Infra, GMM Pfaudler, Thangamayil Jewellery, BBTC, IEX, Mastek, Menon Bearings, Nectar Lifesciences (Q4FY20), Phoenix Mills, Union Bank of India (Q4FY20), Grauer Weil (Q4FY20).
Union Cabinet Meet: The meeting will be held after a gap of 2 weeks.
PM Modi to meet with Banks and NBFCs: Prime Minister Narendra Modi will hold a meeting with stakeholders from Banks and NBFCs as well as secretaries to discuss and deliberate on vision and roadmap for the future today. The meeting will be attended by the officers from PSU banks and Secretaries of Finance Ministry and important Infra Ministries. The topic of agenda includes discussion on problems that the banks have faced during Corona, liquidity and lending issues as well as the ways to implement the Atmanirbhar Bharat Package.
See Zee Business Live TV streaming below:
AGM: Annual General Meeting of Colgate and TVS Motor is scheduled to be held today.
FOMC Meet: Federal Open Market Committee decision will come out today.
Mindspace Business Parks REIT IPO: The Rs 4,500-crore public offer of Mindspace Business Parks REIT saw 1.20 times subscription on July 28, the second day of its bidding, driven by the demand from non-institutional investors. The portion set aside for qualified institutional buyers (QIB) has seen subscription of 83%, while the portion set for non-institutional investors was subscribed 1.65 times. Today is the last day of the IPO. The price band of the issue is fixed at Rs 274-275 per unit. The IPO will remain open until July 29, 2020. Investors can make for a minimum of 200 units and in multiples of 200 units. At the upper end of the price band, investors need to invest a minimum of Rs 55,000 in the issue.
Ex-Dividend: Alembic Ltd, Bata India, GM Breweries, GPPL, Morganite Crucible (India), Novartis India, UltraTech Cement will turn ex-dividend today. The ex-dividend date for stocks is usually set one business day before the record date.
Results: These companies, namely Nestle, IndusInd, RBL Bank, IDFC First, NIIT Tech, Tata Coffee, have reported their financial results after the market hours on Tuesday. Find in details:
Nestle: FMCG major Nestle on Tuesday reported an 11% year-on-year (YoY) rise in profit to Rs 486.6 crore for the quarter that ended on June 30, 2020. It had posted a net profit of Rs 437.7 crore in the corresponding quarter last year. Its sales grew by 1.6% to Rs 3,050 crore against the sales of Rs 3,000 crore posted in a year-ago quarter. EBITDA stood at Rs 747 crore, up 4.9% from last year’s Rs 712 crore. The margin advanced to 24.4% in Q2FY20 as compared to 23.7% posted in Q2CY19. The company follows the January-December period as its financial year.
IndusInd Bank: The private sector lender IndusInd Bank on Tuesday reported a 67% year-on-year (YoY) decline in standalone profit at Rs 461 crore for the quarter ended on June 30, 2020. IT had posted a net profit of Rs 1,433 crore in the corresponding quarter last year. The net interest income (NII) for the quarter was at Rs 3.309 crore, up 16% from Rs 2,844 crore posted in the corresponding quarter last year. Total provisions in Q1FY21 were at Rs 2,259 crore, 424% up against last year’s Rs 431 crore. The provisions were at Rs 2,440 crore in the previous quarter. Gross NPA spiked to 2.53% against 2.45% posted in March quarter. Net NPA declined to 0.86% in Q1FY21 from 0.91% posted in Q4Fy20. Besides, the board approved the plan to raise Rs 3,288 crore funds through preferential shares. The preferential shares will be allotted at Rs 534 per share. The board of directors also approved raising Rs 792 crore by issuing over 1.51 crore equity shares, 15% stakes, on preferential basis at Rs 524 per share to promoter IndusInd International Holdings and Hinduja Capital.
RBL Bank: RBL Bank on Tuesday reported a 47% YoY decline in standalone profit at Rs 141 crore for the quarter ended on June 30, 2020. It posted a net profit of Rs 267 crore in the same quarter last year. The net interest income (NII) for the quarter was at Rs 1,041 crore, up 27% from Rs 818 crore posted last year. Provisions in Q1FY21 were at Rs 500 crore, which was 153% up from provisioning of Q1FY20 which stood at Rs 197 crore. The provisions were at Rs 601 crore in the March quarter of last fiscal. Gross NPA declined to 3.45% in Q1FY21 from 3.62% posted in Q4FY20. Net NPA was down to 1.65% from previous quarters 2.05%.
IDFC First Bank: The private lender on Tuesday reported a year-on-year profit of Rs 93.5 crore in the quarter ended on June 30, 2020, against the loss of Rs 617 crore posted in the corresponding quarter last year. The net interest income (NII) for the quarter was 38.5% up at Rs 1,626 crore in Q1FY21 against Rs 1,174 crore posted in Q1FY20. Provisions in Q1FY21 were 40% down at Rs 764 crore from Rs 1,281 crore posted in Q1FY20. It provisioned Rs 412 crore in Q4FY20. Gross NPA declined 1.9% on a QoQ basis from 2.6%, while the net NPA decline to 0.5% on QoQ basis from 0.9%.
NIIT Technologies: The leading IT solutions organization on Tuesday reported 29% quarter-on-quarter (QoQ) decline in consolidating profit at Rs 80 crore for the quarter ended on June 30, 2020. It had posted a net profit of Rs 113.6 crore in the corresponding quarter last year. Consolidated revenue from operations declined 4% to Rs 1,057 crore from Rs 1,109 crore posted last year. EBIT was 31% down in Q1FY21 to Rs 109 crore from Rs 159 crore posted in Q1FY20. EBIT margin declined to 10.3% in Q1FY21 from 14.3% posted in Q1FY20.
Tata Coffee: The coffee company owned by the Tata Consumer Products, a subsidiary of Tata Group, on Tuesday reported 77% YoY rise in consolidated profit at Rs 61.6 crore for the quarter ended on June 30, 2020. It had posted a net profit of Rs 34.8 crore in the corresponding quarter last year. Consolidated sales grew by 25.9% at Rs 587.5 crore against Rs 466.6 crore posted last year. EBITDA grew 40.4% to Rs 110.5 crore from Rs 78.7 crore. The margin grew to 18.8% in Q1FY21 from 16.8% posted in Q1FY20.
Aviation Stocks in Focus: International Air Transport Association (IATA) has released recovery estimates on Global passenger traffic and said it would take until 2024 for passenger traffic to return to the pre-crisis level. It says the time limit can be extended further if the measures to have control on the pandemic are not successful. In its estimate, it reduced its 2020 passenger numbers forecast to a 55 per cent decline.
Telecom Companies in Focus: Government likely to consider lowering the base price of the 5G spectrum to compensate telcos if they have to shell out more for buying non-Chinese equipment. It will focus on promoting home-grown appliances as the telcos margins will be impacted by the purchase of homegrown appliances.
IRCTC: Indian Railways on Tuesday said it may incur a loss of Rs 30,000-35,000 crore in the passenger train segment due to the lockdown which has collapsed train travel. Currently, Indian Railways is operating only 230 special trains, with an overall occupancy of 75%.
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