Midcaps and smallcaps fared relatively better than their larger peers as the BSE midcap index closed 0.58 percent lower while the smallcap index fell 0.31 percent.
Tracking weak global cues, the Indian equity market benchmarks the Sensex and the Nifty50 ended over a percent lower on July 19. The 30-share pack Sensex fell 734 points, while Nifty plunged to 15,707.50 in intraday trade as rising inflation and the spread of the delta variant of coronavirus spooked investors. At close, Sensex was 587 points, or 1.10 percent, down at 52,553.40, while the Nifty settled 171 points, or 1.07 percent, lower at 15,752.40.
HDFC Bank | CMP: Rs 1,472.40 | The stock shed over 3 percent on July 19. The country’s largest private sector lender on July 17 reported a 16.1 percent year-on-year growth in standalone profit at Rs 7,729.64 crore for the quarter ended June 2021 despite elevated provisions. Net interest income, the difference between interest earned and interest expended, grew by 8.6 percent to Rs 17,009 crore compared to the year-ago quarter, with loan growth of 14.4 percent and a core net interest margin of 4.1 percent. Deposits, at Rs 13.45 lakh crore grew, by 13.2 percent YoY. Goldman Sachs has a “buy” rating with the target at Rs 1,803. CLSA, too, has a “buy” rating: with the target at Rs 1,850.
Adani Group stocks fall | Share price of Adani Group stocks fell on July 19 after the government told Parliament that several companies belonging to Gautam Adani-owned group were under investigation. In a written response to Parliament on July 19, Minister of State for Finance Pankaj Chaudhary told Parliament that several Adani group companies remained under the scanner of market regulator the Securities and Exchange Board of India and the government’s Directorate of Revenue Intelligence (DRI). Adani Green Energy shed 2 percent, while Adani Total Gas and Adani Transmission were down over 4 percent each. Adani Enterprises shed 1 percent, Adani Power and Adani Ports closed more than 2 percent each at close on July 19.
HDFC Life Insurance | CMP: Rs 678.85 | The share was down over 2 percent on July 19. Net premium income grew 31.5 percent at Rs 7,540 crore against Rs 5,733.7 crore (YoY). Net profit was down 40.2 percent at Rs 269.6 crore against Rs 450.5 crore (YoY). Solvency ratio at 203 percent against 190 percent (YoY). VNB at Rs 408 crore against an estimated Rs 395 crore. VNB margin at 26.14 percent, too, was higher than the expected figure of 25.25 percent.
Swaraj Engines | CMP: Rs 1,765 | The scrip ended in the red. The company reported a net profit at Rs 33.7 crore against Rs 7.8 crore (YoY). Revenue came in at Rs 314.7 crore against Rs 117 crore (YoY) while EBITDA was at Rs 47.3 crore against Rs 12.9 crore (YoY) and EBITDA margin at 15 percent against 11 percent (YoY).
Indian Bank | CMP: Rs 139 | The share price ended in the green on July 19 after the bank reported net profit at Rs 1,181.7 crore against Rs 369.3 crore (YoY). Other income came in at Rs 1,876.1 crore against Rs 1,326.8 crore (YoY). Gross NPA was at 9.7 percent against 9.9 percent (QoQ) while net NPA came in at 3.5 percent against 3.4 percent (QoQ). NII grew 3.1 percent at Rs 3,994.2 crore against Rs 3,874.3 crore (YoY).
RIL, Just Dial | RIL stock prices ended half a percent down at Rs 2,097.95 and Just Dial closed 4 percent lower at Rs 1,024.95 on July 19. On July 16, Reliance Retail Ventures Limited (RRVL), the retail arm of Reliance Industries Limited (RIL), announced it was acquiring a majority stake of 66.95 percent in B2B search engine Just Dial. As per the agreement, Just Dial Founder VSS Mani would continue to lead the company as its managing director and chief executive officer. Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
Burger King | CMP: Rs 178.70 | The share jumped over 5 percent on July 19. Motilal Oswal Financial Services has initiated coverage of the stock with a ‘buy rating and a target price of Rs 210, which is an almost 25 percent upside from the stock’s previous close of Rs 168.60. The brokerage firm expects all listed Indian quick-service restaurants to be significant beneficiaries of the strengthening tailwinds led by COVID-19.
Tata Power | CMP: Rs 125.65 | The share price added over a percent after the company joined hands with HPCL to set up electric vehicle charging stations at its petrol pumps across the country.?
Den Networks | CMP: Rs 53.90 | The stock shed over 2 percent after the company reported lower consolidated profit at Rs 41.14 crore in Q1FY22 against Rs 58.65 crore in Q1FY21, revenue rose to Rs 302.97 crore from Rs 301.3 crore YoY.
L&T Finance Holdings | CMP: Rs 90.55 | The stock price fell over 4 percent on July 19. The company reported a 20 percent rise in net profit at Rs 178 crore for June quarter 2021-22, mainly driven by rural demand for farm equipment. The non-banking financial company had registered Rs 148 crore profit in the year-ago period. Global research firm Goldman Sachs has a buy on the stock with the target at Rs 128 per share.
Sandip Das
