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Global markets tumble, Can Indian markets sustain?

Good Morning Everyone, Hope all of you enjoyed your weekend as Yet another new week starts today and we are all ready with our stock picks for the week as discussed at our weekly meet on Saturday.

Global Markets:

As discussed in the meet, US markets closed in the red on Friday evening after touching all-time highs in the last few weeks as the worries due to rising inflation and the rise in covid due to the delta variant reduced the confidence in the investors.

The Dow Jones Industrial Average fell 0.86% to end at 34,687.85 points, while the S&P 500 lost 0.75% to 4,327.16. The Nasdaq Composite dropped 0.8% to 14,427.24.

We could see this effect in the Asian markets this morning too as Japan's Nikkei dropped 1.3% as did Australia's benchmark share index South Korea's KOSPI was 1% lower while New Zealand's shares were off 0.4%.

Indian Market:

Trends on the SGX nifty show a negative start to the day as Nifty might open with a big gap down at around 15700-15750, with a loss of almost 150-200 points.

The country's largest private sector lender HDFC Bank 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. Higher other income and pre-provision operating profit along with NII supported profitability. The bank reported a profit of Rs 6,658.62 crore in Q1 FY21.

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.

This looks good as we should remember that the last quarter had major lockdowns across the country and also the RBI had stopped HDFC bank to issue any new credit cards during this period. This could probably give some power to the banking industry.

Results Today

HCL Technologies, HDFC Life Insurance Company, ACC, Indian Bank, Mastek, Allsec Technologies, Alok Industries, Astron Paper & Board Mill, GTPL Hathway, Nippon Life India Asset Management, Plastiblends India, Ponni Sugars (Erode), PSP Projects, Supreme Petrochem, and Swaraj Engines will release quarterly earnings on July 19.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 466.3 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 666.07 crore in the Indian equity market on July 16

Stock Specific News:

Reliance Industries, Just Dial | Reliance Retail Ventures will take a controlling stake in Just Dial for Rs 3,497 crore.

HDFC Bank | The bank’s Q1FY22 standalone net profit rose 16.1 percent to Rs 7,729.64 crore from Rs 6,658.62 crore, while net interest income increased 8.6 percent to Rs 17,009 crore from Rs 15,665.42 crore

GR Infraprojects, Clean Science & Technology | The shares of GR Infraprojects and Clean Science & Technology will be listed on exchanges today.

LIC Housing Finance | The company said stock exchanges are examining its proposal of preferential allotment of shares to the parent company Life Insurance Corporation of India (LIC).

L&T Finance Holdings | The company reported a higher profit at Rs 177.85 crore in Q1FY22 against Rs 148.31 crore in Q1FY21, revenue fell to Rs 3,140.12 crore from Rs 3,387.06 crore YoY.

Tata Power Company | The company has partnered with HPCL to set up electric vehicle charging stations at its petrol pumps across the country.

Rossari Biotec | The company will acquire Tristar Intermediates at an enterprise value of Rs 120 crore.

Spandana Sphoorty Financial | The company approved the issuance of secured non-convertible debentures up to Rs 290 crore on a private placement basis.

Central Bank of India | The bank will seek shareholders’ approval in its ensuing AGM next month to set off the accumulated loss of over Rs 18,724 crore from the share premium account of the bank.

Mahindra Holidays & Resorts India | The company has recommenced its resorts operations starting from June 2021 in a staggered manner and currently, majority of its resorts are operational.

Den Networks | The company’s Q1FY22 consolidated profit fell to Rs 41.14 crore from Rs 58.65 crore, revenue rose to Rs 302.97 crore from Rs 301.3 crore, YoY.

United Spirits | Recovery Officer I DRT II sold 1.13 crore equity shares of the company at Rs 630.93 per share on the BSE. The deal was worth Rs 716 crore.

Jindal Stainless (Hisar) | India Ratings has upgraded the credit rating of the company’s long-term bank facilities from 'A' to 'A+' and short-term facilities from 'A1' to 'A1+'.

Anjani Portland Cement | The company has purchased another 33,23,423 (2.38 percent) equity shares of Bhavya Cements at Rs 52.59 per share, increasing its stake to 91.52 percent.

Nel Holdings South | The company has signed a Business Transfer Agreement with Ramky Estates and Farms for the exit of the Melbourne Park project held with NHDPL South, the wholly-owned subsidiary of the company.

Bajaj Hindusthan Sugar | Punjab National Bank sold a 2 percent stake in the company via open market transaction, reducing shareholding to 9.23 percent from 11.23 percent earlier.

GR Infraprojects, Clean Science & Technology | The shares of GR Infraprojects and Clean Science & Technology will be listed on exchanges today.

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