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6 July 2021, Pre Market Report: More seats in airlines, Aviation stocks to move up?

Good Morning Everyone, as we discussed in the post-market report, Metals & Banks had a field day along with Realty rallying yesterday. If you have not read the post-market report yesterday, click here to read now.


Global Markets:


US markets were closed yesterday to mark the Independence day holiday, hence we have no cues from there.


Asian share markets opened a fraction higher in the morning today, ahead of a key decision by Australia's central bank on its quantitative easing program and despite ongoing concerns over the future regulation of China's powerful technology sector.


MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.05%.


In Hong Kong, the Hang Seng Index was down 0.7% while China's CSI300 was off by nearly 0.3%.


Japan's Nikkei was up 0.45% while the S&P ASX200 stood 0.21% higher. In South Korea, the Kospi 200 Index rose 0.5% in early trade.


Chinese technology stocks remain under the microscope on Tuesday after the Cyberspace Administration of China (CAC) ordered an investigation into Didi Global Holdings just days after it listed on the New York Stock Exchange.


Indian Market:


Trends on the SGX nifty indicate a flat to a negative opening on the Nifty today.


The Securities and Exchange Board of India (SEBI) has formally approved food delivery giant Zomato's application for an initial public offering (IPO), paving the way for one of the most keenly awaited share sales in recent history.


The Civil Aviation Ministry has allowed domestic airlines to operate at 65 percent of their original pre-COVID-19-level capacity. The Centre on July 5 increased the seating capacity from the current 50 percent to 65 percent stating that the cap on domestic aviation capacity at 65 percent will be operational until July 31 or till further orders. This could help the aviation sectoral stocks move up today.


Foreign institutional investors (FIIs) net sold shares worth Rs 338.43 crore and continued their selling spree, though the value to selling has reduced from over 1000 cr to about 338.43 cr, while domestic institutional investors (DIIs) net purchased shares worth Rs 645.59 crore in the Indian equity market yesterday. DIIs are still very positive in the market and this could be a clue for us, as to what to expect in the market in the long term.


Stock Specific News:


Maruti Suzuki India | The company produced 165,576 units in June 2021 as against 50,742 units of production in June 2020.


Tata Motors | The company plans to increase the prices of its passenger vehicle range due to an increase in input costs.


NMDC | The government proposed to sell a 4 percent stake in the company through an offer for sale (OFS) on July 6-7. The floor price for the offer shall be Rs 165 per equity share.


Tech Mahindra | The company has partnered with StaTwig, a digital supply chain solution provider, to implement vaccine traceability platform ‘VaccineLedger’ globally.


Aviation stocks | The government has increased the seating capacity of domestic airlines to 65 percent from the current 50 percent.


BSE, MCX, CDSL | Stock exchanges and other market infrastructure institutions, as well as their top officials, are liable to face penalties for lapses in handling and rectifying technical glitches, with Sebi putting in place a stricter compliance system driven by “financial disincentives”.


AU Small Finance Bank | The bank’s total deposits in Q1FY22 were at Rs 37,014 crore, up 38 percent YoY and 3 percent QoQ. CASA ratio was at 26 percent versus 23 percent QoQ and versus 14 percent YoY. Disbursements were at Rs 1,896 crore, up 60.5 percent YoY and down 74.45 percent QoQ. Loan AUM was at Rs 36,635 crore, up 21.97 percent YoY and down 2.9 percent QoQ.


IDFC First Bank | The bank’s customer deposits in Q1FY22 rose 35.53 percent YoY to Rs 84,583 crore. CASA Ratio was at 51.04 percent versus 33.74 percent YoY and versus 51.75 percent QoQ.


Force Motors | The company announced production of 1,757 units of commercial vehicles, utility vehicles and tractors in June 2021, and sales of 1,925 units in June 2021.


Religare Enterprises | The company’s shareholders have approved a proposal for raising Rs 570 crore via preferential issue of shares to a clutch of investors, including existing shareholders, to fund its business plans.


Raymond | Joe Kuruvilla, CEO of the company’s lifestyle business, has decided to step down.


Themis Medicare | CARE has upgraded long term credit rating on the company’s bank facilities to B+/Stable, from B/Stable.


SH Kelkar and Company | The company’s Q1FY22 consolidated sales stood at Rs 355 crore. Its net debt position stood at around Rs 386 crore as of June 2021 compared to Rs 380 crore as of March 2021.


IOL Chemicals & Pharmaceuticals | CARE has upgraded the credit rating by one notch for the banking facilities availed by the company, to A+/Stable, from A/Stable.






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