US & European markets at a record high, Asia down with concerns of delta variant.

Good Morning Everyone,

Today is the last trading day of the week and we have seen a bullish sentiment in the Nifty yesterday.

Global Markets:

The US markets again closed at record highs for the 3rs straight day as the jobs data showed good signs of recovery, which has brought some more confidence into the investors. The US economy seems to be recovering soon as Walt Disney reported its third-quarter earnings and revenue that beat analysts' forecasts, led by better-than-expected Disney+ performance and a return to profit in its theme parks and resorts business. Walt Disney shares gained 5% in after-hours trade following the report.

The Dow Jones Industrial Average rose 14.88 points, or 0.04%, to 35,499.85, the S&P 500 gained 13.13 points, or 0.30%, to 4,460.83 and the Nasdaq Composite added 51.13 points, or 0.35%, to 14,816.26.

U.K. equities were higher at the close on Thursday, as gains in the Automobiles & Parts, Pharmaceuticals & Biotech, and Industrial Transportation sectors propelled shares higher.

At the close in London, the United Kingdom 100 rose 0.03% to hit a new 52-week high.

But Asian markets are trading lower with Kospi down 1 percent, while Hang Send, Straits Times, Shanghai Composite down 0.3-0.9 percent.

A Covid outbreak that has partially shut one of the world’s busiest container ports is heightening concerns that the rapid spread of the delta variant will lead to a repeat of last year’s shipping nightmares. The Port of Los Angeles, which saw its volumes dip because of a June Covid outbreak at the Yantian port in China, is concerned with another potential decline because of the latest shutdown at the Ningbo-Zhoushan port in China.

Indian Market:

With European & US markets at their all-time high, the only negative we see is the Asian market down due to the partial closure of the Chinese port.

Trends on the SGX Nifty indicate a flat start to the Nifty today. But Yesterday the Consumer Price Index-based inflation data came to be lower at 5.59%, which is positive for Nifty as of date.

The government has kickstarted the process of selling up to a 25 percent stake in National Seeds Corporation (NSC) through an initial public offering (IPO). The Department of Investment and Public Asset Management (DIPAM) has invited bids from merchant bankers and legal advisors for working on the proposed IPO and subsequent stock exchange listing of the PSU under the Ministry of Agriculture and Farmers Welfare.

Consumer Price Index-Based inflation (CPI) for July came in at 5.59 percent, back within the Monetary Policy Committee's inflation targeting range of 4 (+/-2) percent, on the back of softening food prices. Consumer Food Price Inflation (CFPI) for July cooled to 3.96 percent compared with 5.15 percent in June, data from the National Statistical Office showed on August 12.

Results Today:

Godrej Industries, Grasim Industries, NBCC (India), NHPC, Oil and Natural Gas Corporation, Hindustan Aeronautics, Indraprastha Gas, Inox Wind, Burger King India, Sun TV Network, Allcargo Logistics, Archies, D B Corp, Gayatri Projects, Glenmark Pharmaceuticals, Gujarat Mineral Development Corporation, GMR Infrastructure, Godfrey Phillips India, Indian Railway Finance Corporation, IL&FS Investment Managers, Inox Wind Energy, Jammu & Kashmir Bank, Jagran Prakashan, Madhucon Projects, Maharashtra Seamless, Mawana Sugars, Orbit Exports, Orchid Pharma, Petronet LNG, SEAMEC, Sintex Industries, Suven Pharmaceuticals, Suzlon Energy, Tide Water Oil (INDIA), Ucal Fuel Systems, Uttam Galva Steels, Visa Steel, Vivimed Labs, and ZEE Learn to announce results on August 13.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 212.11 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 307.75 crore in the Indian equity market on August 12.

Stock Specific News:

Aviation stocks | The civil aviation ministry has hiked the maximum and minimum limit on domestic airfares by 12.5 percent and allowed airlines to deploy up to 72.5 percent capacity as against 65 percent earlier.

Tata Steel | The company posted a net profit of Rs 9,768.3 crore in Q1FY22 versus a loss of Rs 4,648.1 crore in Q1FY21. Revenue jumped to Rs 53,371.8 crore from Rs 25,474.5 crore, YoY

Hero MotoCorp | The company’s Q1FY22 net profit jumped to Rs 365.4 crore from Rs 61.3 crore and revenue rose 84.7 percent to Rs 5,487 crore from Rs 2,971.5 crore, YoY.

Ashok Leyland | The company’s net loss in Q1FY22 narrowed to Rs 282.3 crore from Rs 388 crore, YoY, while revenue rose to Rs 2,951 crore from Rs 650.9 crore, YoY.

Eicher Motors | The company reported a net profit of Rs 237.1 crore in Q1FY22 versus a loss of Rs 55.2 crore, YoY. Revenue rose to 1,974.3 crore from Rs 818.2 crore, YoY. The company said that Royal Enfield CEO Vinod Dasari has resigned w.e.f August 13. Dasari would be succeeded by B Govindarajan, who has been the chief operating officer of Royal Enfield since 2013.

Aurobindo Pharma | The company’s Q1FY22 net profit fell 1.7 percent to Rs 770 crore from Rs 783.2 crore and revenue declined 3.8 percent to Rs 5,702 crore from Rs 5,924.8 crore, YoY.

Tata Power Company | Subsidiary Tata Power Solar Systems has been awarded a project worth Rs 386 crore to build a solar PV plant with a 50MWh Battery Energy Storage System (BESS) in Leh, Ladakh.

Ujjivan Small Finance Bank | The bank’s additional independent director Harish Devarajan resigned with immediate effect due to personal reasons.

Dish TV India | The company’s Q1FY22 consolidated net profit fell 34.07 percent to Rs 49.14 crore from Rs 74.54 crore, while revenue declined 12.51 percent to Rs 730.97 crore from Rs 835.58 crore, YoY.

Minda Corporation | The company reported a net profit from continued operations at Rs 7.1 crore in Q1FY22 against a loss of Rs 36.3 crore, YoY. Operating revenue jumped to Rs 558.6 from Rs 178 crore, YoY.

Page Industries | The company has posted Q1FY22 net profit at Rs 10.9 crore versus a loss of Rs 39.6 crore, YoY. Revenue rose 76.1 percent to Rs 501.5 crore from Rs 284.8 crore, YoY.

Jubilant Food Works | CRISIL has reaffirmed its rating on the commercial paper program of the company at CRISIL A1+.

Rail Vikas Nigam | The company’s Q1FY22 consolidated net profit rose 64.73 percent to Rs 232.26 crore from Rs 140.99 crore and total income rose to Rs 3,931.80 crore from Rs 2,967 crore, YoY.

JB Chemicals & Pharmaceuticals | The company’s Q1FY22 consolidated net profit stood at Rs 119.05 crore versus Rs 119.50 crore, while revenue rose to Rs 606 crore from Rs 522.3 crore, YoY.