Pre Market update for 19 July 2022

*SGX Nifty -150 pts (16163) from last trade 16313 ,*

Nikkei +126 pts ,

Hangseng -127 pts ,

Dow -215.16 pts ,Nsdq -92.37 pts, S&P

-32.31 pts, Bovespa +365 pts , Ftse +64 pts , Dax +95 pts , Cac +55 pts , Crude @ $99.00 brl (-0.42), Brent @ $105.72 brl (+0.10) , Gold @ 1704.40 (-5.80), Silver @ $18.642 (+0.04), Euro @ $1.0131, JPY @ $138.20,  INR @ 79.995

*Today's Corporate Action*

*19th July Ex Date*

ADORWELD

Final Dividend - Rs. - 12.5000

AEGISLOG

Final Dividend - Rs. - 0.5000

AKI

Bonus issue 3:10 

ASTEC

Final Dividend - Rs. - 1.5000

FEDERALBNK

Final Dividend - Rs. - 1.8000

GOODRICKE

Dividend - Rs. - 3.0000

GRANULES

Final Dividend - Rs. - 0.7500

GRINDWELL

Dividend - Rs. - 12.0000

HCLTECH

Interim Dividend - Rs. - 10.0000

HERANBA

Final Dividend - Rs. - 2.0000

KARURVYSYA

Dividend - Rs. - 1.6000

MAHLIFE

Final Dividend - Rs. - 2.0000

PANTH

Bonus issue 1:2 

RGL

Final Dividend - Rs. - 3.0000

RGL

Stock  Split From Rs.10/- to Rs.2/-TIRUMALCHM

Dividend - Rs. - 2.5000

*Today's Key Results/Board Meetings*

*19-Jul-22*

ACGL

Quarterly Results  

ADROITINFO

Quarterly Results  

AMBUJACEM

Quarterly Results  

AUBANK

A.G.M.;

General;Quarterly Results

CAMPUS

General   

CONTROLPR

Quarterly Results  

DCMSHRIRAM

Quarterly Results  

FMEC

A.G.M.;Increase in Authorised Capital;Quarterly Results

GARWSYN

Audited Results;General 

HATSUN

A.G.M.;Interim Dividend;Quarterly Results

HAZOOR

General   

HDFCLIFE

Quarterly Results  

HINDUNILVR

Quarterly Results  

ICICIGIAudited Results;Quarterly Results

INDIANACRY

Quarterly Results  

INTEGRAEN

Employees Stock Option Plan;General;Quarterly Results

KHAITANLTD

General   

KIRLPNU

Quarterly Results  

L&TFH

Quarterly Results  

NETWORK18

Quarterly Results  

NILASPACES

Quarterly Results  

PASARI

General;Quarterly Results 

POLYCAB

Quarterly Results  

PONNIERODE

Quarterly Results  

PRITIKAUTO

General   

RALLIS

Quarterly Results  

SBGLP

A.G.M.;Audited Results;General 

SHABCHM

General;Quarterly Results 

SHAREINDIA

Interim Dividend;Quarterly Results

SHEMAROO

Quarterly Results  

SKYLMILAR

Quarterly Results  

SSWL

Quarterly Results;Stock  Split 

TV18BRDCST

Quarterly Results  

ZDHJERK

General;Quarterly Results 

*Stock under F&O ban on NSE*

*19-Jul-22*

1DELTACORP

• Reliance Jio Makes Highest Earnest Money Deposit for Airwave Bid

o Bharti Airtel deposited INR55b, Vodafone Idea INR22b

• India Expects GDP Growth to Exceed 7% in 2022-23

• Ola to Invest $500M for Setting Up Bangalore Battery R&D Center

• Marriott to Open Five New Hotels in India With Beekay Group

• India Cumulative Monsoon Rainfall 13% Above Normal as of July 18

• Indian Company Private Bond Sales Rise 46% W/w to INR88.9B

• Emerging Market ETFs Rise for 4th Week in $1.4 Bln Streak

• Global Funds Buy Net INR1.56B of India Stocks on Monday: NSE

o Domestic funds buy net 8.44b rupees of stocks

• Foreign Investors Sell Net INR16.3B of India Equities on July 15

• Foreigners Buy Net INR29.4B of Indian Equity Derivatives Monday

• Emergency Curbs Protests as Sri Lanka Awaits New President (1)

• Ukraine Latest: Putin Says Russia Facing ‘Colossal’ Tech Hurdles

• Russia’s Oil Deliveries to China and India Are 30% Below Peak

• Gold Rebounds From Near 11-Month Low as Dollar Retreats

• Govt, RBI measures help banks recover bad loans worth over INR8.6T in last 8 fiscal: PTI

• Hindalco Industries (HNDL): Hindalco, Aequs in Strategic Alliance for Comm. Aerospace Sector

• IndusInd Bank (IIB):Approves Raising Up to 200B Rupees in Bonds

• Jubilant Foodworks (JUBI): Says unit raises stake in DP Eurasia N.V.

• Mangalore Chemicals (MCF): Shut Phosphatic fertilizer plant on non-availability of raw material

• Nucleus Software (NCS): Wins deal from Vietnam’s PVComBank for digitizing lending operations by its platform FinnOne Neo

• Surya Roshni (SYR): Gets 912.7m rupees order for supply of gas pipes from Bharat Gas Resources

• Tube Investments (TIINDIA): Says unit to buy 65.2% stake in IPLTech Electric for INR2.46b

• Zydus Lifesciences (ZYDUSLIF): Gets U.S. FDA approval for Efinaconazole ropical solution

*US Markets in Detail...*

*SGX: 16,170 (-120) (-0.74%)*

*Provisional Cash Rs. In Crs. (18th July)*

FIIs: +156 (15,055 – 14,899)

DIIs: +844 (6,274 – 5,429)

*Today’s Major Corporate Earnings:*

AMBUJACEM, AUBANK, CONTROLPR, DCMSHRIRAM, HATSUN, HDFCLIFE, HINDUNILVR, ICICIGI, L&TFH, NETWORK18, POLYCAB, TV18BRDCST, etc

*Today:*

*Listing of Bonus Equity Shares of MINDA INDUSTRIES LTD*

28,58,75,834 Bonus Equity of Rs. 2/- each allotted on July 11, 2022.

Sensex: 54,521 +760: +1.41%

Nifty: 16,279: +229: +1.43%

BankNifty: 35,359: +676: +1.95%

NiftyIT: 27,323: +838: +3.16%

MIDCAP: 23,195: +340: +1.49%

Dow: 31,073 (-216) (-0.69%)

S&P: 3,831 (-32) (-0.84%)

Nas: 11,360 (-92) (-0.81%)

Brazil: 96,913: +365: +0.38%

Ftse: 7,223: +64: +0.90%

Dax: 12,960: +95: +0.74%

Cac: 6,092: +56: +0.93%

MOEX: 2,096 (-13) (-0.62%)

WTI Oil: $102.6: +5: +5.13%

Brnt: $105.6: +4.4: +4.40%

Gold: $1,710: +7: +0.39%

Silver: $18.84: +1.32%

Copper: $335: +11: +3.46%

Copper (LME): $7,191: +21: +0.29%

Alluminum (LME): $2,343: +7: +0.28%

Zinc (LM): $2,915: +40: +1.39%

Tin (LME): $24,850: +532: +2.19%

Eur-$: 1.0147

GBP-$: 1.1951

Jpy-$: 138.10

Re: 79.9775: +0.13%

USD = RUB: 57.9782: +1.72%

US10yr: 2.99%

GIND10YR: 7.437 (-0.01%)

$ Index: 107.4310 (-0.58%)

US Vix: 25.30: +4.42%

India Vix: 17.16 (-2.50%)

BalticDry: 2,150: +140: +6.97%

*ADR/GDR*

Cogni (-1.15%)

Infy: +1.49%

Wit: +0.20%

IciciBk: +0.63%

HdfcBk (-2.83%)

DrRdy (-2.94%)

TataMo: +0.61%

TatSt: +0.45%

Axis: +2.28%

SBI: +1.33%

RIGD: +0.58%

INDA (-0.52%) (IShares MSCI INDIA ETF)

INDY (-0.60%) (IShares MSCI INDIA 50 ETF)

EPI (-0.40%) (Wisdom Tree India Earning)

PIN (-0.43%) (Invesco India Etf)

*U.S. stocks gave up early gains to finish lower on Monday, after Bloomberg reported that Apple Inc. plans to slow hiring and spending growth in some divisions next year in anticipation of a potential economic downturn.*

The Dow Jones Industrial Average fell 215.65 points, or 0.7%, to close at 31,072.61, *after rising as much as 356 points at its session high*. That’s the largest one-day point and percentage drop since June 30, according to Dow Jones Market Data.

The S&P 500 extended losses in the last hour of trading, after coughing up a gain that had surpassed 1%. Tech and health-care shares led the drop, with Apple sliding more than 2% in its worst day in almost three weeks. The iPhone maker plans to slow hiring and spending growth next year in some divisions to cope with a potential economic downturn, people with knowledge of the matter said. The news follows a similar move by Alphabet Inc. last week.

*What’s been holding us up of course is jobs, so now as we start to get these announcements jobs aren’t maybe as stable, now you’re seeing the impetus toward recession*

*Netflix Inc.* will kick off second-quarter earnings for major tech and communication companies when it reports Tuesday evening. Profit growth for the sector is expected to slow sharply.

Stocks had been rebounding from their June low on expectations that the Fed is starting to gain ground in its efforts to slow price gains. *Treasuries slumped Monday, with 10-year yields below 3% -- still lower than the 2-year rate, leaving the curve inverted in what is generally a recession warning.*

Dow industrials posted their biggest drop in more than two weeks and, along with the S&P 500, are now down six of the past seven trading days.

*After the bell, International Business Machines Corp. reported sales that beat estimates, a sign that demand for mainframe computers, consulting and cloud services remained strong. The shares were little changed in extended trading.*

*Volume on U.S. exchanges was 10.63 billion shares, compared with the 12.15 billion average for the full session over the last 20 trading days.*

*What drove markets*

*A Bloomberg report about Apple’s plan to slow hiring and spending growth was the most likely reason that the stock market shifted into a selloff mode on Monday afternoon. Shares of Apple finished down by 2.1% after the report.*

Investors are really questioning optimistic earnings forecasts for the rest of this year and into 2023. We are going to need to get our arms around what earnings are going to look like in coming quarters and that’s going to depend on guidance.

“When Apple, a $2.4 trillion dollar company market cap-wise, rolls over, it’s obviously going to have a pronounced impact on the headline indices and it just reminds people that companies are buckling down because of what they’re seeing out there,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group.

Boockvar said Apple earnings will be important to the overall market in terms of how they manage currency, what’s happening in the Chinese business and how they’re going to react as consumers move more toward services rather than goods spending.

“People are not going to keep buying laptops every year, and they’re not going to replace their phone every year,” Boockvar added.

*We anticipate volatility to remain elevated as the market toggles between pricing recession risk and soft landing probabilities with each piece of data*

*Earlier on Monday, investors had been focused on positive elements within the quarterly results of Goldman Sachs Group Inc. and Bank of America Corp.*

Goldman _ shares closed up by 2.5% after the investment-banking giant posted a stronger-than-expected second-quarter profit, although earnings fell from the year-ago quarter. Bank of America _ shares finished marginally higher after the bank fell short of Wall Street’s profit estimate, but revenue matched expectations and net interest income beat.

The first full week of the U.S. second-quarter earnings season is getting under way, with [delivering better-than-expected results after the closing bell. ]

*Reports from other big banks, such as JPMorgan Chase _, were not initially well-received last week. But the market mood brightened by Friday and the early part of Monday after Federal Reserve officials talked down the prospects of a 100-basis point rate hike at next week’s policy meeting.*

*The chances of such a sharp tightening are now around 33%, compared with 80% last Wednesday, and a 75 basis point move to 2.25% to 2.50% is baked in. The dollar index _ eased from 20-year highs in response, falling 0.6% to 107.44.*

Traders had been watching to see if upside momentum would continue after a strong finish last week.

*Bullish momentum in equities has been elusive this year, but Thursday was conspicuous in that both the stock market and crude oil made multiweek or multi-month lows before reversing to close near their highs of the day, and then followed through to the upside on Friday.*

Whether that momentum will carry into this week — or longer — remains to be seen. Though in the past, when the SPX has made similar pullbacks, it was higher one week later more time than not.

*The Fed, however, is unlikely to relent on its aggressive rate-hike pace, especially against a backdrop of a strong labor market and resilient corporate and consumer spending. Longer term, “stagflation could be on the docket.”*

Aside from earnings, it’s likely to be a quiet week for U.S. macroeconomic catalysts, with the Fed now in the premeeting blackout period and investors possibly turning their attention elsewhere.

*Earnings expectations*

Despite the growing recession fears, S&P 500 companies are expected to post a 4.2% year-over-year increase in second-quarter profit, according to consensus analyst estimates gathered by FactSet. S&P 500 revenues are seen expanding 10.2% in the quarters, according to FactSet.

Profit expectations for the full year are still high with analysts estimating S&P 500 companies will lift 2022 earnings by 9.9%, data collected by FactSet show.

We expect the results to be generally okay. Focus will primarily be on margins and to the extent to which companies are able to pass along higher input costs, that’ll dictate where perhaps valuations can go.

Last week, fresh inflation data showed consumer prices jumped 9.1% in June, a hotter-than-expected reading and the largest increase since 1981. That, in turn, led traders to bet that the Fed could raise rates by a full percentage point at its meeting at the end of July.

*Recession fears have dominated trading sentiment in recent weeks as market participants worry that aggressive action from the Fed — in an effort to tame decades-high inflation — will ultimately tip the economy into a recession.*

"It's really hard to sustain upward momentum," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. "And that's kind of the story of bear markets."

*Another pressure point for markets remains gas supply to Europe amid a standoff with Russia over its invasion of Ukraine, with the Nord Stream 1 pipeline scheduled to reopen Thursday following maintenance. Gazprom PJSC declared force majeure on several European natural-gas buyers, a move that may signal it intends to keep supplies capped.*

*We see the ECB (European Central Bank) raising rates by 0.25% this week amid high inflation and despite recession fears*,” Wei Li, BlackRock Investment Institute’s global chief investment strategist, and others wrote in a note Monday.

“Both the ECB and Fed are for now pandering to `the politics of inflation,’ or pressure to tame inflation. We think the ECB will pause its hiking first,” they said. “Why? The energy crisis means Europe’s growth is likely to stall soon. Higher rates and political turmoil may also send peripheral borrowing costs spiraling. All this leaves us favoring credit over stocks and neutral on euro area government bonds.”

Elsewhere in markets Monday, West Texas Intermediate crude climbed above $100 a barrel after the Saudis declined to make any promises regarding future output increases, and copper extended its recovery from last week’s slump. Bitcoin rallied, trading above $22,000 for the first time since early June.

*Less aggressive Fed?*

*Investors assessed the likelihood that the Fed will be less aggressive than feared at its meeting later this month. A Wall Street Journal report Sunday said the central bank is on track to lift interest rates by 75 basis points, instead of the full percentage point increase forecast by some market participants.*

Goldman Sachs chief economist Jan Hatzius also said in an overnight note that he expected the Fed to raise rates by three quarters of a point.

Still, recession fears have been prominent in recent weeks as Wall Street considered decades-high inflation, sharply rising interest rates and an inverted yield curve signal.

Markets are likely to remain volatile in the coming months and trade based on hopes and fears about economic growth and inflation.

A more durable improvement in market sentiment is unlikely until there is a consistent decline both in headline and in core inflation readings to reassure investors that the threat of entrenched price rises is passing.

*More market commentary*

# “The key for the markets continues to be the overall direction of the economy,” wrote Paul Nolte, portfolio manager at Kingsview Investment Management. “If the recession that is heading our way is mild, then much of the decline has already occurred, and this is a good time to accumulate shares. If the recession is deeper/longer, then there is a risk of another 15% decline in stocks from here.”

# “Our call remains that the economy will slow aggressively over the next 6-12 months and bond yields are headed lower, but a recession is not imminent,” wrote Dennis DeBusschere, the founder of 22V Research. “That backdrop has implications for factors and markets near term, especially as disinflationary forces continue to strengthen.”

# “The possibility that Russia stops, or severely reduces, their gas exports to Europe should keep markets on edge in the near-term,” Mizuho International Plc strategists Peter McCallum and Evelyne Gomez-Liechti wrote in a note to clients.

*Companies in focus*

# Shares of Dow component *Boeing Co.* finished marginally lower after the aerospace and defense giant said Delta Air Lines Inc. DAL would order 100 of its 737-10 jets as the air carrier modernizes its single-aisle fleet. Delta shares finished up by 3.5%.

# Elon Musk filed a motion Friday opposing *Twitter Inc.’s* request to expedite a trial over his intention to terminate his $44 billion takeover. Twitter shares closed up by 1.8%.

*How other assets fared*

U.S. oil prices settled back above $100 a barrel on Monday for the first time in a week, benefiting from signs that U.S. President Joe Biden had not secured an immediate increase in Saudi Arabian supply. West Texas Intermediate crude for August delivery rose $5.01, or 5.1%, to settle at $102.60 a barrel on the New York Mercantile Exchange.

The 10-year Treasury yield BX:TMUBMUSD10Y rose 3 basis points to 2.959%, the highest level in a week, based on 3 p.m. levels from Dow Jones Market Data. Yields and debt prices move opposite each other.

The ICE Dollar index _ fell 0.6%, helping to inspire gains for gold. August gold gained $6.60, or 0.4%, to settle at $1,710.20.

Bitcoin BTCUSD advanced 2.9% to 21,551.

European stocks closed higher Monday to build on Friday’s gains (probably because at the time of Europe closing, US Markets were positive), although Italy’s main index was muted amid political uncertainty.

Asia markets got an added lift from signs the Chinese authorities will look to support the construction sector and ease monetary policy. Hong Kong’s Hang Seng HK:HSI finished 2.7% higher and the Shanghai Composite CN:SHCOMP closed up by 1.6%. Japan was shut for a holiday.

*Key events to watch this week:*

# Earnings this week include Tesla

# US Treasury Secretary Janet Yellen visits South Korea. Tuesday

# Reserve Bank of Australia releases July minutes. Tuesday

# UK Chancellor Nadhim Zahawi and Bank of England Governor Andrew Bailey speak at event. Tuesday

Bloomberg Crypto Summit in New York. Tuesday

# Bank of Japan, European Central Bank rate decisions. Thursday

# Nord Stream 1 pipeline scheduled to reopen following maintenance. Thursday

*Currencies*

# The Bloomberg Dollar Spot Index fell 0.4%

# The euro rose 0.6% to $1.0145

# The British pound rose 0.8% to $1.1955

# The Japanese yen rose 0.4% to 138.07 per dollar

*Bonds*

# The yield on 10-year Treasuries advanced five basis points to 2.97%

# Germany’s 10-year yield advanced eight basis points to 1.22%

# Britain’s 10-year yield advanced seven basis points to 2.16%

*Commodities*

# West Texas Intermediate crude rose 4.8% to $102.29 a barrel

# Gold futures were little changed.

STOCKS in ACTION 19 July

SuryaRoshni : Surya Roshni Ltd receives orders of Rs. 91.27 crores

JindalStainless : Jindal Stainless to provide 3,500 MT stainless steel for the USBRL railway tunnel project in Jammu & Kashmir

Bharti Artel/Reliance Industries/Vodafone

Idea/Adani Enterprises: Reliance Jo deposited Rs 140 billion earnest money for airwave bid.

Vodafone Idea deposited Rs 22 billion, Bharti Airtel deposited Rs 55 billion and Adani Data deposited Rs 1 billion earnest money for airwave bid.

Indusind Bank: The bank will raise Rs 20,000 crore via bonds on a private placement basis.

TubeInvestmentsofIndia : Tube Investments of India Limited expands footprint in clean mobility

Indian Oil/NTPC: The two companies signed an

agreement to form a joint venture company for meeting the power requirements of upcoming projects of Indian Oil refineries.

GREAVES COTTON :

Ather to launch next-gen 450X

electric scooter

HINDALCO : Israel Based Phinergy to partner exclusively with Hindalco in India, on R&D and pilot production of aluminium plates for Aluminium-Air batteries, and recycling of aluminium, after usage in these batteries

ZydusLifesciences : Zydus receives final approval from the USFDA for Efinaconazole Topical Solution

HeroMotoCorp : Hero MotoCorp launches Rally Edition of Xpulse 200 4V

TUBE INVESTMENTS OF INDIA :

WoS TI Clean Mobility Acquires

IPLTech Electric

Enters into definitive agreement for

acquisition of 65.2% stake for Rs 246 Crores

DrLalPathLabs : IIMA and Lal Pathlabs Foundation collaborate to set up a Research Chair in Healthcare

TheSouthIndianBank : Customs Duty Collection Arrangement Launched by South Indian Bank

NucleusSoftwareExports : Nucleus Software's FinnOne Neo to transform PVcomBank's retail lending

KennametalIndia : India Ratings assigns Kennametal India 'IND AA-', Outlook Stable

MANGALORE CHEMICALS : Company has shut down the DAP

NP Phosphatic fertilizer Plant due to

non-availability of raw material

(Phosphoric Acid)

ShivamAutotech : Accident at Shivam Autotech Ltd's Rohtak Plant due to spillage of Salt on 18th July, 2022