*Global-Market Insight*
-US markets gained momentum, S&P 500 rises to a new record as Big tech stocks gain
-Dow +104 to 34682
-S&P +15 to 4358
-Highly volatile Brent crude oil falls below $74
-10-Y US Bond yield at 1.311%
-Fed discussed potential reduction in stimulus
-US markets gained momentum, S&P 500 rises to a new record as Big tech stocks gain
-Dow +104 to 34682
-S&P +15 to 4358
-Highly volatile Brent crude oil falls below $74
-10-Y US Bond yield at 1.311%
-Fed discussed potential reduction in stimulus
*Brokerage reports*
Jefferies On Tata Motors
Buy Call
Target Rs 435
--
Nomura on Tata Motors
Neutral Call
Target Rs 353
--
MS on JSPL
Equal weight Call
Target Rs 535
--
Jefferies on Adani Ports
Buy Call
Target Rs 910
--
Jefferies on GAIL
Hold Call
Target Rs 150
Jefferies On Tata Motors
Buy Call
Target Rs 435
--
Nomura on Tata Motors
Neutral Call
Target Rs 353
--
MS on JSPL
Equal weight Call
Target Rs 535
--
Jefferies on Adani Ports
Buy Call
Target Rs 910
--
Jefferies on GAIL
Hold Call
Target Rs 150
Bulk Deal & Insider Trade Update
Bulk Deals
*Dhani Services Limited : Tamarind Capital Pte Ltd Sell 6900000 Shares @ Rs. 182.85
*Ujjivan Fin. Servc. Ltd. : Aberdeen Global Asian Smaller Companies Fund Sell 1005335 Shares @ Rs. 203.83
*H.G.Infra Engineering Ltd : Employees Retirement System Of Texas - Self Managed Portfolio Buy 426311 Shares @ Rs. 472.23
Ashika
Insider Trade
Invoke
*Peeyush Kumar Aggarwal Promoter Invoke 5237334 shares of Visesh Infotecnics Ltd. on 05-Jul-21
*T. Indira Reddy Promoter & Director Invoke 2200000 shares of Gayatri Projects Ltd. on 05-Jul-21
Ashika
Dividend Update
*Bajaj Auto Ltd. Dividend Rs. 140 Ex Date 08-Jul-2021
*Bajaj Finserv Ltd. Dividend Rs. 3 Ex Date 08-Jul-2021
*Bajaj Holdings & Investment Ltd. Dividend Rs. 40 Ex Date 08-Jul-2021
*Bajaj Finance Ltd. Final Dividend Rs. 10 Ex Date 08-Jul-2021
*Crompton Greaves Consumer Electricals Ltd. Final Dividend Rs. 2.5 Ex Date 08-Jul-2021
*DCM Shriram Ltd. Final Dividend Rs. 3.8 Ex Date 08-Jul-2021
*Fineotex Chemical Ltd. Final Dividend Rs. 0.3 Ex Date 08-Jul-2021
*Hindustan Petroleum Corporation Ltd. Final Dividend Rs. 22.75 Ex Date 08-Jul-2021
*Indian Bank Final Dividend Rs. 2 Ex Date 08-Jul-2021
*Jindal Saw Ltd. Dividend Rs. 2 Ex Date 08-Jul-2021
*L&T Technology Services Ltd. Final Dividend Rs. 14.5 Ex Date 08-Jul-2021
*Maharashtra Scooters Ltd. Dividend Rs. 50 Ex Date 08-Jul-2021
*Pioneer Embroideries Ltd. Dividend Rs. 0.25 Ex Date 08-Jul-2021
*Control Print Ltd. Final Dividend Rs. 4.5 Ex Date 09-Jul-2021
*Dr. Reddys Laboratories Ltd. Final Dividend Rs. 25 Ex Date 09-Jul-2021
*Kirloskar Pneumatic Company Ltd. Final Dividend Rs. 3.5 Ex Date 09-Jul-2021
*Navin Fluorine International Ltd. Final Dividend Rs. 6 Ex Date 09-Jul-2021
*Trent Ltd. Final Dividend Rs. 0.6 Ex Date 09-Jul-2021
Bulk Deals
*Dhani Services Limited : Tamarind Capital Pte Ltd Sell 6900000 Shares @ Rs. 182.85
*Ujjivan Fin. Servc. Ltd. : Aberdeen Global Asian Smaller Companies Fund Sell 1005335 Shares @ Rs. 203.83
*H.G.Infra Engineering Ltd : Employees Retirement System Of Texas - Self Managed Portfolio Buy 426311 Shares @ Rs. 472.23
Ashika
Insider Trade
Invoke
*Peeyush Kumar Aggarwal Promoter Invoke 5237334 shares of Visesh Infotecnics Ltd. on 05-Jul-21
*T. Indira Reddy Promoter & Director Invoke 2200000 shares of Gayatri Projects Ltd. on 05-Jul-21
Ashika
Dividend Update
*Bajaj Auto Ltd. Dividend Rs. 140 Ex Date 08-Jul-2021
*Bajaj Finserv Ltd. Dividend Rs. 3 Ex Date 08-Jul-2021
*Bajaj Holdings & Investment Ltd. Dividend Rs. 40 Ex Date 08-Jul-2021
*Bajaj Finance Ltd. Final Dividend Rs. 10 Ex Date 08-Jul-2021
*Crompton Greaves Consumer Electricals Ltd. Final Dividend Rs. 2.5 Ex Date 08-Jul-2021
*DCM Shriram Ltd. Final Dividend Rs. 3.8 Ex Date 08-Jul-2021
*Fineotex Chemical Ltd. Final Dividend Rs. 0.3 Ex Date 08-Jul-2021
*Hindustan Petroleum Corporation Ltd. Final Dividend Rs. 22.75 Ex Date 08-Jul-2021
*Indian Bank Final Dividend Rs. 2 Ex Date 08-Jul-2021
*Jindal Saw Ltd. Dividend Rs. 2 Ex Date 08-Jul-2021
*L&T Technology Services Ltd. Final Dividend Rs. 14.5 Ex Date 08-Jul-2021
*Maharashtra Scooters Ltd. Dividend Rs. 50 Ex Date 08-Jul-2021
*Pioneer Embroideries Ltd. Dividend Rs. 0.25 Ex Date 08-Jul-2021
*Control Print Ltd. Final Dividend Rs. 4.5 Ex Date 09-Jul-2021
*Dr. Reddys Laboratories Ltd. Final Dividend Rs. 25 Ex Date 09-Jul-2021
*Kirloskar Pneumatic Company Ltd. Final Dividend Rs. 3.5 Ex Date 09-Jul-2021
*Navin Fluorine International Ltd. Final Dividend Rs. 6 Ex Date 09-Jul-2021
*Trent Ltd. Final Dividend Rs. 0.6 Ex Date 09-Jul-2021
*India Daybook – Stocks in News*
*Garware:* Company has upgraded its rating and outlook regarding the bank facilities. (Positive)
*RailTel:* Company has received a work order amounting to Rs. 23.43 Crore. (Positive)
*Bajaj Healthcare* has received a licence from DRDO to Manufacture and Market of “2-Deoxy-D-Glucose” (2-DG) as approved medication for the treatment of COVID-19 patients. (Positive)
*IGL:* CNG retail price in Delhi revised from Rs 43.40/kg to Rs 44.30/kg w.e.f 8th July; PNG domestic price to be Rs 29.66 per SCM (Positive)
*Deepak Fertilizer:* Release of 2.57 Crore Shares encumbered with IFC (Positive)
*Dynamitic Product:* Investors bought 4.83 percent stake in company (Positive)
*Tata Motors:* No Plans To Delay Any Product Launch, Will Not Hold Back On New Investments (Positive)
*HG Infra*: Employees Retirement System of Texas - Self Managed Portfolio bought 4,26,311 equity shares in the company at Rs 472.23 per share (Positive)
*Zee Entertainment:* The company has received government approval to sell its Digital Publishing Business Division to Rapidcube Technologies. (Positive)
*Shree Cement:* Rating Agency i.e. CARE Ratings Limited has reaffirmed the rating of the Company. (Neutral)
*PNB Housing Finance:* Promoter Punjab National Bank has asked the company to consider restructuring the proposed Rs 4,000 crore capital infusion. (Neutral)
*Hindustan Oil:* HDFC sold a 2.46 percent equity stake in the company for Rs 37.2 crore, reducing shareholding to 8.75 percent from 11.21 percent earlier. (Neutral)
*REC Ltd:* The company has raised $400 million by issuing bonds to finance the power sector. (Neutral)
*Piramal Enterprises:* The company’s board on July 12 will consider and approve the issue of Non-Convertible Debentures worth Rs 200 crore on a private placement basis. (Neutral)
*KPR Mill:* The company’s board will consider a stock split on July 27. (Neutral)
*Zuari Global:* The company has acquired 13.19 percent shares of Forte Furniture Products India from the Indian Furniture Products. (Neutral)
*Dhani Services*: Tamarind Capital Pte Ltd sold 69 lakh equity shares in the company at Rs 182.85 per share on the NSE (Negative)
*Garware:* Company has upgraded its rating and outlook regarding the bank facilities. (Positive)
*RailTel:* Company has received a work order amounting to Rs. 23.43 Crore. (Positive)
*Bajaj Healthcare* has received a licence from DRDO to Manufacture and Market of “2-Deoxy-D-Glucose” (2-DG) as approved medication for the treatment of COVID-19 patients. (Positive)
*IGL:* CNG retail price in Delhi revised from Rs 43.40/kg to Rs 44.30/kg w.e.f 8th July; PNG domestic price to be Rs 29.66 per SCM (Positive)
*Deepak Fertilizer:* Release of 2.57 Crore Shares encumbered with IFC (Positive)
*Dynamitic Product:* Investors bought 4.83 percent stake in company (Positive)
*Tata Motors:* No Plans To Delay Any Product Launch, Will Not Hold Back On New Investments (Positive)
*HG Infra*: Employees Retirement System of Texas - Self Managed Portfolio bought 4,26,311 equity shares in the company at Rs 472.23 per share (Positive)
*Zee Entertainment:* The company has received government approval to sell its Digital Publishing Business Division to Rapidcube Technologies. (Positive)
*Shree Cement:* Rating Agency i.e. CARE Ratings Limited has reaffirmed the rating of the Company. (Neutral)
*PNB Housing Finance:* Promoter Punjab National Bank has asked the company to consider restructuring the proposed Rs 4,000 crore capital infusion. (Neutral)
*Hindustan Oil:* HDFC sold a 2.46 percent equity stake in the company for Rs 37.2 crore, reducing shareholding to 8.75 percent from 11.21 percent earlier. (Neutral)
*REC Ltd:* The company has raised $400 million by issuing bonds to finance the power sector. (Neutral)
*Piramal Enterprises:* The company’s board on July 12 will consider and approve the issue of Non-Convertible Debentures worth Rs 200 crore on a private placement basis. (Neutral)
*KPR Mill:* The company’s board will consider a stock split on July 27. (Neutral)
*Zuari Global:* The company has acquired 13.19 percent shares of Forte Furniture Products India from the Indian Furniture Products. (Neutral)
*Dhani Services*: Tamarind Capital Pte Ltd sold 69 lakh equity shares in the company at Rs 182.85 per share on the NSE (Negative)
*Tata Motors – JLR: Conference call on semi-conductor issues*
§ Production impact in Q2 expected at ~60,000 units, which represents 50% of production plan. Supply issues were highlighted by vendors only at end of June.
§ Total inventory (factory, transit and dealer) levels stands at ~74,000 units at end of June. Inventory and Q2 production (~60,000 units) should cater to retail demand for most products in Q2.
§ Demand is robust with order-book of 110,000 units at end of June, from UK, Europe and ROW regions. Order-book does not include China and US demand.
§ Supplies should be better in H2 as supplies from Japan and USA should improve. Fire incident at Japan and snow-storm in Texas had impacted supplies, and progressively supplies should improve.
§ New semi-conductor capacities are expected to come up over the next 12-18 months. Company is working with component vendors and semi-conductor suppliers to ensure security of supply chain for the long term.
§ New product launches are not likely to be delayed. New Range Rover sport launch is expected in next 9 months.
§ Considering supply constraints, focus will be on production of high-margin vehicles.
§ Semi-conductor suppliers are proportionally reducing supplies to OEMs in Q2. However, OEMs would prioritize production of certain models over others. For instance, Volkswagen may prioritize production of premium models, which compete with JLR, leading to increase in competition intensity.
§ In Q1 and Q2, EBIT margin will be negative. Cash-outflows are expected at GBP1bn in each of the quarters. Capex is expected at GBP600mn per quarter, and working capital will be negative in Q1/Q2.
§ For FY22, management expects revenue target to be missed, but EBIT margin could be closer to target of 4% and cash-flows could also be closer to breakeven target.
§ Production impact in Q2 expected at ~60,000 units, which represents 50% of production plan. Supply issues were highlighted by vendors only at end of June.
§ Total inventory (factory, transit and dealer) levels stands at ~74,000 units at end of June. Inventory and Q2 production (~60,000 units) should cater to retail demand for most products in Q2.
§ Demand is robust with order-book of 110,000 units at end of June, from UK, Europe and ROW regions. Order-book does not include China and US demand.
§ Supplies should be better in H2 as supplies from Japan and USA should improve. Fire incident at Japan and snow-storm in Texas had impacted supplies, and progressively supplies should improve.
§ New semi-conductor capacities are expected to come up over the next 12-18 months. Company is working with component vendors and semi-conductor suppliers to ensure security of supply chain for the long term.
§ New product launches are not likely to be delayed. New Range Rover sport launch is expected in next 9 months.
§ Considering supply constraints, focus will be on production of high-margin vehicles.
§ Semi-conductor suppliers are proportionally reducing supplies to OEMs in Q2. However, OEMs would prioritize production of certain models over others. For instance, Volkswagen may prioritize production of premium models, which compete with JLR, leading to increase in competition intensity.
§ In Q1 and Q2, EBIT margin will be negative. Cash-outflows are expected at GBP1bn in each of the quarters. Capex is expected at GBP600mn per quarter, and working capital will be negative in Q1/Q2.
§ For FY22, management expects revenue target to be missed, but EBIT margin could be closer to target of 4% and cash-flows could also be closer to breakeven target.
*Jyotiraditya Scindia:* civil aviation
*Aswini Vaishnaw* railways min
*Hardeep puri* - petroleum min/housing
*Mansukh Mandaviya* - health minister, chemical & fertilizer
*Piyush Goyal* - textile min
*Dharmendra pradhan* - Education & skill dev
*Amit Shah* - home, ministry of cooperatives (new ministry)
*P Rupala* - Dairy & fiaheries
*Aswini Vaishnaw* railways min
*Hardeep puri* - petroleum min/housing
*Mansukh Mandaviya* - health minister, chemical & fertilizer
*Piyush Goyal* - textile min
*Dharmendra pradhan* - Education & skill dev
*Amit Shah* - home, ministry of cooperatives (new ministry)
*P Rupala* - Dairy & fiaheries
BREAKING: Japanese government declares state of emergency in Tokyo due to coronavirus, just 2 weeks before the Olympics