Stocks in focus: HUL, Axis Bank, Bajaj Finance, BEML, Bajaj Finserv, Bajaj Auto, Larsen & Toubro

Bajaj Holdings, Alembic Pharma, Jindal Steel, ICICI Securities, Larsen & Toubro, Bajaj Auto, TTK Prestige, Rallis India, MTNL, and Heidelberg Cement are among companies which are scheduled to announce their June quarter results later in the day today.

Nifty futures were trading 16.25 points or 0.15 per cent higher at 11,191.20 on Singaporean Exchange, hinting at a flat start for the BSE Sensex and Nifty 50 on Wednesday. Market participants will continue to track trends in coronavirus cases, global cues, stock-specific action induced by quarterly earnings and movement in oil prices. “Markets are inching higher with every passing day and Nifty may face the next hurdle around 11,250 level. The up move in the banking index is now helping the index to sustain at the higher levels while others are witnessing rotational buying. Traders should maintain their focus on trade selection and position management,” said Ajit Mishra, VP – Research, Religare Broking Ltd.

Stocks in focus today:

Hindustan Unilever: The FMCG giant HUL reported a 7 per cent on-year growth in its standalone net profit at Rs 1,881 crore in the April to June quarter of the current fiscal. The company had reported a net profit of Rs 1,755 crore in the corresponding quarter last year.

Axis Bank: Axis Bank’s net profit declined 18.8 per cent to Rs 1,112 crore in the April-June quarter of the financial year 2021, as provisions rose 15.8 per cent on-year to Rs 4,416 crore and other income fell 33 per cent to Rs 2,587 crore. As of June 30, 9.7 per cent of the bank’s loan book by value was under the moratorium, down from 25-28 per cent earlier.

Bajaj Finance: Rahul Bajaj, chairman of Bajaj Finance, has announced his retirement after heading the company for the last 33 years. Bajaj said as part of the succession plan, he was resigning and handing over reigns of the company to Sanjiv Bajaj who is currently vice-chairman.

Bajaj Finserv: Bajaj Finserv on Tuesday reported a 44 per cent rise in consolidated net profit at Rs 1, 215 crore for the June 2020 quarter. Bajaj Finserv’s consolidated income increased by 16 per cent to Rs 14,192 crore. There was degrowth in the finance and insurance business because of the lockdown during Q1FY21, the company said.

BEML: BEML announced that it has received the order from Ministry of Defence (MoD) for the supply of 1,512 Track Width Mine Plough (TWMP) for T-90 S/SK Tanks at an approximate cost of Rs 557 crore. Under ‘Make in India’ policy the contract has Buy and Make (Indian) categorisation with a minimum of 50 per cent indigenous content in make portion of the contract.

Larsen & Toubro, Bajaj Auto: Bajaj Holdings, Alembic Pharma, Jindal Steel, ICICI Securities, Larsen & Toubro, Bajaj Auto, TTK Prestige, Rallis India, MTNL, and Heidelberg Cement are among companies which are scheduled to announce their June quarter results later in the day today.

Markets likely to consolidate; HUL, Axis Bank, Bajaj Auto, L&T shares in focus

Asian shares were mixed on Wednesday after President Donald Trump’s comments regarding the surge in novel coronavirus cases in the US outweighed a slight rally on the Wall Street

MUMBAI: Indian stock markets on Wednesday are expected to consolidate gains made in the past few sessions amid mixed cues from global peers.

The SGX Nifty futures were up 0.1%, indicating a firm opening of Indian benchmark indices. On Tuesday, the BSE Sensex had ended at 37,930.33, up 511.34 points or 1.37% and the Nifty closed at 11,162.25, up 140.05 points or 1.27%.

Asian shares were mixed on Wednesday after President Donald Trump’s comments regarding the surge in novel coronavirus cases in the US outweighed a slight rally on the Wall Street.

Speaking at his first White House briefing focused on the pandemic in months, Trump said the virus will probably get worse before it gets better. Cases have been rising across the United States, with death toll now at nearly 141,000.

Also weighing on markets were comments made earlier in the day by Secretary of State Mike Pompeo that the United States wants to build a global coalition to counter China, which he accused of exploiting the coronavirus pandemic to further its own interests.

US equity markets had been higher for most of the session on Tuesday, as investors cheered the European Union’s creation of a 750-billion-euro recovery fund and US regulators continued hammering out a new stimulus agreement.

Back home, shares of Hindustan Unilever Ltd will be in focus as the company has reported a 4.4% revenue growth while it’s net profit rose 7.1% to ₹1,881 crore in the three months ended 30 June from ₹1,755 crore in the year-ago period

Axis Bank reported a net profit of ₹1,112.17 crore in the June quarter of FY21, down 18.8% from the same period last year, due to higher provisions. The bank’s gross non-performing assets (NPAs) ratio –bad loans as a percentage of gross advances — were at 4.72% in Q1 FY21, down 53 basis points (bps) y-o-y and down 14 bps sequentially.

The ₹15,000-crore equity capital raising by Yes Bank is credit positive for the lender as it strengthens the core capital and loss-absorbing buffers, besides reducing default risks for creditors, a report by global ratings agency Moody’s said.

As many as 16 companies, including Bombardier, Sterlite Power and GMR Infrastructure, have shown interest in operating passenger trains on India’s railway network.

Among major companies, Larsen & Toubro, Bajaj Auto, Bajaj Holdings, Jindal Steel and ICICI Securities will announce their June quarter results on Wednesday.

Gold soared to a nine-year peak on Tuesday, boosted by a dollar sell-off. Spot gold rose 1.5% to $1,842.52 per ounce, its highest since September 2011.

The US dollar viewed as safe-haven rival to bullion, hit more than a four-month low.

The Australian dollar rose 0.01% versus the greenback at $0.713.

Oil prices also hit their highest level in more than four months, although prices pared gains in post-settlement trade on news that US crude inventories grew last week by more than expected.

Reuters contributed to the story.