News Shots

  • The American tech giants Apple, Amazon, Facebook and Alphabet reported their quarterly earnings on Thursday. All 4 tech companies managed to beat expectations in their quarterly earnings. The earnings report of the Silicon Valley giants shows that their businesses have managed to hold up amidst the coronavirus pandemic. 
  • Reliance Industries profit jumps 31% YoY to Rs 13,233 crore on exceptional gains and has beaten street estimates. The investment by BP Energy and the various investments in Jio are the exceptional gains. Meanwhile, Reliance Jio Infocomm reported 182.82 per cent YoY growth in net profit at Rs 2,520 crore for the quarter against Rs 891 crore reported for the same period last year. Jio’s ARPU(Average Revenue Per User) has increased from Rs 130 to Rs 140.
  • Interesting remark from Airtel’s CEO Gopal Vittal hinted at another tariff hike, stressing that the telecom company’s average revenue per user (ARPU) needs to move to ₹200, and eventually to ₹300 per month, for a sustainable business model. It is currently at Rs 157, much higher than that of Jio’s.
  • Reliance Industries on Thursday raised Rs 2,550 crore by selling five sets of commercial papers, at 3.4 percent. (Commercial paper is a security issued (sold) by large corporations to obtain funds to meet short-term debt obligations and the company promises to pay the full amount on the maturity date specified on the note.)
  • Reliance buys a 15% stake in premium lingerie brand Zivame from Ronnie Screwvala. This is another major move from Reliance towards building a retail empire.
  • HDFC profit declines 5% To Rs 3,052 crore In June quarter. HDFC’s shareholders have approved raising up to Rs 1.25 lakh crore by issuing bonds or other hybrid instruments on a private placement basis.
  • The Airports Authority of India (AAI) has put SpiceJet operations across the country on a “cash and carry basis”, presumably due to the carrier’s inability to clear airport dues.
  • Tata Power has received shareholders’ approval to raise Rs 2,600 crore via issuance of preferential shares to its promoter Tata Sons.
  • Max Financial Services reported an over three-fold jump in consolidated net profit to Rs 182 crore for the June quarter on the back of a strong performance by its life insurance arm.
  • Dabur India Limited on Thursday reported 5.9 per cent fall in consolidated net profit at Rs 342 crore. This is when all other FMCG majors posted high jump in profits.
  • Q1 Results Announcement Today:
    • SBI
    • Sun Pharmaceuticals
    • IOC
    • UPL
    • Tata Motors
    • Tata Chemicals
    • Ujjivan SFB

What to expect today?

  • Yesterday was surprising. The market opened positively and moved up with strength. There came a sudden fall, larger than that of the previous day. Again HDFC Bank was leading the fall. Fortunately, NIFTY has taken support at the strong 11,100 level.
  • US Markets fell heavily but regained later. Asian markets are mostly down. SGX NIFTY is currently trading slightly higher at 11,114, indicating a flat to gap up opening in the Indian Market!
  • NIFTY is likely to trade between 11,000 and 11,250 today. There is support at 11,100 and 11,060 and resistance at 11,200 and 11,230.
  • Highest Call Open Interest at 11,200, followed by 11,300. Highest Put Open Interest at 11,100, followed by 11,000. 
  • Foreign institutional investors (FIIs) bought shares worth Rs 207.3 crore while domestic institutional investors (DIIs) sold shares worth Rs 387.24 crore in the Indian equity market. It is interesting to note that FIIs were net buyers even in such a falling market!