KEY HIGHLIGHTS
Closing Bell: Sensex, Nifty Halt Three-Day Rally On Weekly Expiry
Indian equity benchmarks snapped its three-day rally, driven by losses in auto stocks and Yes Bank.
The S&P BSE Sensex closed 0.81 percent lower at 38,897.46 and the NSE Nifty 50 ended at 11,596.90, down 0.78 percent. The broader market index represented by the NSE Nifty 500 Index closed 0.91 percent lower. Yes Bank was the top loser on both Sensex and Nifty indices after it fell over 12 percent. The private lender announced its June quarter results on Wednesday.
The market breadth was tilted in favour of sellers. About 1,301 stocks declined and 453 shares advanced on National Stock Exchange.
Nine out of 11 sectoral gauges compiled by NSE closed lower, led by the NSE Nifty PSU Bank Index’s 3.18 percent fall. On the flipside, the NSE Nifty Media Index was the top sectoral gainer, up 0.23 percent.
Block Deal Alert: Vodafone Idea
About 19.8 lakh shares of the country’s largest telecom operator changed hands through two block deals, Bloomberg data showed. Buyers and sellers were not known immediately.
The shares fell as much as 6.3 percent to Rs 11.20 apiece after the deal. The stock has declined 60 percent in the past 12 months compared with a 7.1 percent gain in the Sensex.
City Union Bank Recovers From Day's Low On Fund-Raising Plans
Shares of the Tamil Nadu-based lender pared day’s losses as it traded 1.9 percent down at Rs 205.30. The stock declined close to 3.5 percent intraday.
The bank’s board approved to raise further capital to the tune of Rs 500 crore through QIP route, according to an exchange notification.
The stock traded 11 percent below the Bloomberg consensus one-year target price.
Market Commentary: Nifty May Touch 11,450-Levels Soon, Says Rahul Randeria
The Nifty may fall to around 11,460 in the next few sessions due to pressure at higher levels, according to Rahul Randeria, an independent market expert.
"Besides, the heavyweight stocks which provided support till now to the indices are losing momentum at current level." However, Randeria did not see any "major" downside in the index for intraday ahead of the weekly expiry.
Market Commentary: Nifty Sees First Support Level At 11,640, Reliance Securities Says
The Nifty sees its first support at 11,640 and then at 11,610, while it sees resistance at 11,775 and then at 11,850 in today’s trade, according to Reliance Securities.
“The Nifty continued its daily rising trend for straight third trading session in a row, failed to surpass its short-term moving average convincingly,” the research firm said in a note.
Due to further rebound, its momentum indicator and oscillator has given positive cross-over, signals probable rebound is on the cards. However downward slopping short-term and medium-term moving averages and bearish trend following indicator were not in favour of the expected bounce back, Reliance Securities said.
Stocks Moving On Heavy Volumes
Security & Intelligence Services
- Stock fell as much as 2 percent to Rs 830.
- Trading volume was more than 110 times its 20-day average.
Intellect Design Arena
- Stock fell as much as 5.9 percent to Rs 255.65.
- Trading volume was almost 20 times its 20-day average.
Dishman Carbogen Amcis
- Stock rose as much as 2.3 percent to Rs 219.
- Trading volume was almost 11 times its 20-day average.
Mindtree
- Stock fell as much as 10.6 percent to Rs 670.95.
- Trading volume was more than 10 times its 20-day average
Money Market Update: Rupee Near Day’s Low
The Indian rupee, which reversed its opening gains at around 11:15 a.m. is currently trading near day’s low against the U.S. dollar. The home currency depreciated 0.11 percent to 68.89 against the greenback.
Market Check: Sensex, Nifty At Day’s Low
Indian equity benchmarks traded at day’s low.
The S&P BSE Sensex fell 193 points or 0.49 percent to 39,022 and the NSE Nifty 50 fell as much as 0.53 percent to 11,625. The broader market index represented by the NSE Nifty 500 Index fell as much as 0.7 percent.
The market breadth was tilted in favour of sellers. About 1,278 stocks declined and 424 shares advanced on National Stock Exchange.
DGCA Found Safety Management System Of 5 Airlines Deficient: Government
Aviation watchdog DGCA has conducted safety audits of Air India Express, SpiceJet Ltd., Air India, IndiGo (InterGlobe Aviation Ltd.) and GoAir and it found the implementation of their safety management system “to be deficient”, the government has informed the Rajya Sabha.
Civil Aviation Minister Hardeep Singh Puri Wednesday said the audits also found that the flight crew rostering software was not upgraded and untrained staff were manning check-in counters.
Source: PTI
BQ Conversations: Yes Bank CEO Ravneet Gill Speaks After Q1 Results
A day after Yes Bank reported a lower-than expected quarterly profit as bad-loan clean-up continues, Chief Executive Officer Ravneet Gill will speak to BloombergQuint’s Ira Dugal on the way ahead for the Mumbai-based lender.
Watch the full conversation here:
Europe Market Check: Equities Decline
European equities dropped at the open as major companies spooked investors with sales declines and profit warnings.
Talwalkars Group Stocks Hit 20% Lower Circuit
Shares of Talwalkars Better Value Fitness Ltd. and Talwalkars Healthclubs Ltd. hit their lower circuit of 20 percent in today’s trade.
While Talwalkars Healthclubs extended declines for the fourth consecutive trading sessions, Talwalkars Better Value Fitness declined four times in the last five trading sessions.
Market Check: Sensex, Nifty At Day’s Low
Indian equity benchmarks traded at day’s low.
The S&P BSE Sensex fell as much as 0.4 percent to 39,051.07 and the NSE Nifty 50 fell as much as 0.43 percent to 11,636.95. The broader market index represented by the NSE Nifty 500 Index fell as much a 0.58 percent.
The market breadth was tilted in favour of sellers. About 1,278 stocks declined and 424 shares advanced on National Stock Exchange.
DB Corp Jumps 7% After Q1 Results
Shares of DB Corp rose as much as 7.8 percent to Rs 184.70 after announcing its June quarter results.
Key Earnings Highlights (Q1, YoY)
- Revenue fell 4 percent to Rs 607 crore.
- Net profit declined 4 percent to Rs 93.7 crore.
- Ebitda rose 4.4 percent to Rs 175.5 crore.
- Operating margin at 28.9 percent versus 26.6 percent.
Colgate-Pamolive Pares Loss After Q1 Results Announcement
Shares of Colgate-Pamolive (India) Ltd. pared losses and rose as much as 1.9 percent to Rs 1,189 after the company announced its June quarter results.
Key Earnings Highlights (Q1, YoY)
- Revenue up 4.2 percent to Rs 1084.9 crore
- Net profit down 10.8 percent to Rs 169.1 crore
- Ebitda up 6.5 percent to Rs 299.9 crore
- Margin at 27.6 percent versus 27 percent
- Exceptional Loss of Rs 34 crore in the base quarter.
- Volume growth at 4 percent.
Global Market Update: Asian Equities Decline
Stocks in Asia fell alongside U.S. and European equity futures and the yen hit a two-week high on deepening concerns about a weak earning season and the impact of a trade battle between Japan and South Korea, two of the region’s four largest economies.
- Futures on the S&P 500 dipped 0.2 percent.
- Futures on the Euro Stoxx 50 sank 0.6 percent.
- Japan’s Topix index fell 2.1 percent at the close.
- Hong Kong’s Hang Seng declined 0.6 percent.
- The Shanghai Composite lost 0.7 percent.
Catch all the Global market updates here.
Source: Bloomberg
Market Check: Sensex, Nifty Near Day’s Low
Indian equity benchmarks traded near day’s low.
The S&P BSE Sensex fell 114 points or 0.29 percent to 39,102 as of 12:06 p.m. and the NSE Nifty 50 fell 0.3 percent to 11,652.45.
Nine out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty PSU Bank Index’s 2.4 percent fall. On the flipside, the NSE Nifty Financial Service Index was the top sectoral gainer, up 0.33 percent.
CARE Ratings Sends CEO On Leave After Anonymous Complaint
CARE Ratings Ltd. has sent its chief executive officer and managing director Rajesh Mokashi on leave till further notice after an anonymous complaint was filed against him at the Securities and Exchange Board of India.
Earlier this month, Moody’s Investors Services’s India unit ICRA Ltd. had put its chief on leave amid a probe into a controversial decision, in the latest sign of trouble in the nation’s credit evaluation history.
Read the full story here.
BHEL Pares Loss After Order Win
Shares of Bharat Heavy Electricals Ltd. pared loses and rose as much as 0.62 percent to Rs 64.50.
The company received an order from Bhartiya Rail Bijlee for Bihar project worth Rs 750 crore, according to Bloomberg.
Of the shares traded, 42 percent were at the ask price and 54 percent were at the bid.
Torrent Pharma Falls As Regulatory Concerns Prevail
Shares of Torrent Pharma fell as much as 6.3 percent, the most in nearly two months, to Rs 1,485.
The U.S FDA classified the company’s Dahej facility Official Action Initiated (OAI) after it conducted inspection in March, according to its stock exchange filing.
“Torrent Pharma has already submitted its initial response to the drug regulator and commitments given in response to Form 483 observations have been fulfilled,” the company said, adding that it is sending further updates over receiving of this OAI letter and will be engaging with the regulator and is fully committed in resolving this issue at the earliest.
Market Commentary: Expect Further Profit Booking If Nifty Falls Below 11,650, IIFL Says
The Nifty could witness further profit booking it is falls below 11,650, according to IIFL’s Senior Technical Analyst Hadrien Mendonca.
“The immediate support would come around 11,500 level on the downside,” Mendonca told BloombergQuint in an interaction. “We can expect fresh move on the upside if the 50-stock index breaks 11,700-11,720 levels,” he added.
Market Check: Sensex, Nifty Struggle To Recover
Indian equity benchmarks struggled to recover as the gains in HDFC twins were countered by losses in Tata Consultancy Services Ltd. and Reliance Industries Ltd.
The S&P BSE Sensex fell 44 points or 0.11 percent to 39,171 as of 11 a.m. and the NSE Nifty 50 fell 0.14 percent to 11,671. The broader market index represented by the NSE Nifty 500 Index fell 0.28 percent.
The market breadth was tilted in favour of sellers. About 1,106 stocks declined and 539 shares advanced on National Stock Exchange.
Sectoral Indices Check: Nifty Metal Worst Sectoral Performer
Eight out of 11 sectoral gauges compiled by NSE declined, led by the NSE Nifty Metal Index’s 1.5 percent fall. On the flipside, the NSE Nifty Financial Service was the top sectoral gainer, 0.37 percent.
F&O Check: Nifty 11,700 Call Option Falls 71%
Nifty’s 11,700 call option contract was among the most active Nifty option contracts on National Stock Exchange.
Premium on the weekly contract which is set to expire this Thursday gained 71.8 percent to Rs 4.45. Over 30.9 lakh shares were added to the open interest which stood at over 51.49 lakh shares.
Block Deal Alert: South Indian Bank
About 10 lakh shares of South Indian Bank changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.
Wipro Gains After Q1 Profit Meets Estimates
Shares of Wipro rose as much as 3.3 percent to Rs 268.10 after the company’s profit for the April-June period slipped but met estimates even as its margin narrowed due to wage hike and a stronger rupee in the quarter.
Key Earnings Highlights (Q1, QoQ)
- IT services revenue down 1.8 percent to $2039 million.
- Revenue down 2.5 percent to Rs 14786 crore.
- Net profit down 3.7 percent to Rs 2402 crore.
- EBIT down 9.2 percent to Rs 2452 crore.
- Margin narrows to 16.6 percent versus 17.8 percent.
Trading in the company's call options totalled 5,158 contracts, compared with the average of 1,824 over the past 20 days, according to Bloomberg data. Trading in the company's put options totalled 4,455 contracts, compared with the average of 1,197 over the same period.
Here’s what analysts are recommending to their clients on Wipro post its results announcement.
Market Check: Sensex, Nifty Struggle To Recover
Indian equity benchmarks struggled to recover as the gain in HDFC twins were countered by the losses in Reliance Industries Ltd. and Yes Bank ltd.
The S&P BSE Sensex fell 50 points or 0.13 percent to 39,164 as of 10 a.m. and the NSE Nifty 50 fell 0.19 percent to 11,665. The broader market index represented by the NSE Nifty 500 Index fell 0.25 percent.
The market breadth was tilted in favour of sellers. About 1,000 stocks declined and 565 shares advanced on National Stock Exchange.
Sudarshan Chemical Jumps The Most In Nearly Nine Months
Shares of Sudarshan Chemical Industries rose as much as 10.5 percent, the most since October 2018, to Rs 352.
Amansa Holdings acquired 9.63 lakh shares or 1.39 percent stake in the company.
Trading volume was almost 60 times its 20-day average, Bloomberg data showed. The stock traded at 18 times its estimated earnings per share for the coming year, according to Bloomberg data.
HDFC AMC Gains For Third Day; Shares Hit Record High
Shares of HDFC Asset Management Company extended gains for the third consecutive trading session and rose as much as 3.5 percent to hit an all-time high at Rs 2,147.
The asset management company had reported its quarterly earnings on Tuesday.
Key Earnings Highlights (Q1, YoY)
- Net profit at Rs 292 crore versus Rs 205 crore.
- Revenue at Rs 504.4 crore versus Rs 471.2 crore.
The stock rose 11 percent in the past five trading sessions and advanced 18 percent in the past 30 days. The stock traded at 37 times its estimated earnings per share for the coming year, Bloomberg data showed.
Mindtree At Over 17-Month Low After Reporting Q1 Results
Shares of Mindtree fell as much as 10.6 percent to Rs 670.95, their lowest level since February 2018.
This after the software developer’s profit for the June quarter halved and results missed estimates as its margin narrowed owing to increased employee costs.
Key Earnings Highlights (Q1, QoQ)
- Dollar revenue up 0.8 percent to $264.2 million.
- Revenues flat at Rs 1,834.2 crore.
- Net profit down 53.3 percent to Rs 92.7 crore.
- Ebitda down 31 percent at Rs 193 crore.
- Margin narrows to 10.4 percent from 15.2 percent.
Trading volume was almost 16 times its 20-day average, Bloomberg data showed. The Relative Strength Index was below 30, indicating that the stock may be overbought. The scrip declined 8.7 percent in the past five days and slumped 27 percent in the past 30 days.
Here’s what analysts are recommending to their clients on Mindtree post its results announcement.
Yes Bank Worst Performer On Sensex, Nifty After Reporting Q1 Results
Shares of the private lender were down 10.4 percent to Rs 88.10 apiece on the NSE Ltd. after opening nearly 20 percent lower.
This after the bank’s asset quality worsened in June quarter, as the lender’s new chief executive Ravneet Gill continued to clean up the lenders books.
Key Earnings Highlights (Q1, YoY)
- Net interest income up 2.8 percent to Rs 2,280.84 crore.
- Net profit down 90 percent to Rs 113.76 crore.
- Provisions up 2.85 times to Rs 1,784.11 crore.
- Gross NPAs at 5.01 percent versus 3.22 percent.(QoQ)
- Net NPAs at 2.91 percent versus 1.86 percent. (QoQ)
Here’s what brokerages had to say after the company reported its June quarter results.
Market Check: Sensex, Nifty Open Lower
Indian equity benchmarks opened lower, mirroring losses in their Asian peers.
The S&P BSE Sensex fell as much as 0.29 percent to 39,101.93 and the NSE Nifty 50 fell as much as 0.25 percent. The broader market index represented by the NSE NIfty 500 Index fell as much as 0.24 percent.
The market breadth was tilted in favour of sellers. About 802 stocks declined and 622 shares advanced on National Stock Exchange.
Nine out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty IT Index’s 1.02 percent fall. On the flipside, the NSE Nifty Financial Service Index was the top sectoral gainer, up 0.18 percent.
Money Market Update: Rupee Opens Higher
The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.12 percent to 68.73 against the greenback.
Steady buying by foreign funds into the debt market is likely to underpin sentiment in the currency market.
The bonds are set to gain amid a drop in crude oil prices and lower U.S. Treasury yields. Oil fell for a fourth day and will boost sentiment in the bond market where state-owned banks are selling and foreign buyers are lining up.
Yields on the benchmark-year bonds rose one basis point to end at 6.34 percent on Wednesday, although it has shaved off more than 50bps since the start of the month amid subdued inflation and rising expectations of a rate cut by the RBI next month.
Pre-Market Check: Sensex, Nifty Set For Muted Start
Indian equity benchmarks are set to open muted start.
The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 39,218 and 11,677 respectively during the pre-market trade.
Meanwhile, shares of Mindtree and Yes Bank dropped 10 percent in the pre-market trade after the companies announced their June quarter results.
Your Complete F&O Trade Setup
Nifty Futures
- Nifty futures closed at 11,675.8, discount of 11.7 points.
- Nifty futures open interest down 4.5 percent, sheds 7.3 lakh shares in open interest.
Bank Nifty
- Bank Nifty futures closed at 30,737.7, premium of 2 points.
- Bank Nifty futures open interest up 1 percent, adds 10,000 shares in open interest.
Options
- Nifty PCR unchanged at 1.34 (across all series).
Nifty Weekly Expiry July 18
- Max open interest on call side at 11,700 (20.4 lakh shares).
- Max open interest on put side at 11,600 (22 lakh shares).
- Open interest addition seen in 11,650P (+6.8 lakh shares), 11,700P (+6.6 lakh shares), 11,700C (+4.5 lakh shares).
- Open interest shedding seen in 11,500P (-5.6 lakh shares), 11,600C (-4.3 lakh shares).
Nifty Monthly Expiry July 25
- Max open interest on call side at 12,000 (32.2 lakh shares).
- Max open interest on put side at 11,300 (25 lakh shares).
Stocks In F&O Ban
- DHFL*
- IDBI Bank
- Reliance Capital
- Reliance Infrastructure
- Tata Elxsi*
*New In Ban
Trading Tweaks: Bhageria Industries, Religare Enterprises
- Bhageria Industries record date for bonus issue at 1:1.
- Religare Enterprises to move out of short term ASM framework.
Earnings Corner: ACC, Colgate Palmolive (India), Mindtree, Wipro, Yes Bank
Earnings To Watch
- Larsen & Toubro Infotech
- ACC
- Colgate Palmolive (India)
- Cyient
- D B Corp
- Hatsun Agro Product
- Pioneer Distilleries
- Rallis India
- Sasken Technologies
- Sterlite Technologies
- Trident
- Uttam Galva Steels
Earnings Reaction To Watch
Yes Bank (Q1, YoY)
- Net interest income up 2.8 percent to Rs 2,280.84 crore.
- Net profit down 90 percent to Rs 113.76 crore.
- Provisions up 2.85 times to Rs 1,784.11 crore.
- Gross NPAs at 5.01 percent versus 3.22 percent.(QoQ)
- Net NPAs at 2.91 percent versus 1.86 percent. (QoQ)
Wipro (Q1, QoQ)
- IT services revenues down 1.8 percent to $2039 million.
- Revenue down 2.5 percent to Rs 14786 crore.
- Net profit down 3.7 percent to Rs 2402 crore.
- EBIT down 9.2 percent to Rs 2452 crore.
- Margin narrows to 16.6 percent versus 17.8 percent.
Mindtree (Q1, QoQ)
- Dollar revenue up 0.8 percent to $264.2 million.
- Revenues flat at Rs 1,834.2 crore.
- Net profit down 53.3 percent to Rs 92.7 crore.
- Ebitda down 31 percent at Rs 193 crore.
- Margin narrows to 10.4 percent from 15.2 percent.
DFM Foods (Q1, YoY)
- Revenues up 29.4 percent at Rs 127.7 crore.
- Net profit up 52 percent at Rs 7.6 crore.
- Ebitda up 34.2 percent at Rs 16.1 crore.
- Margin widens to 12.6 percent versus 12.2 percent.
Stocks To Watch: CARE Ratings, Mindtree, Reliance Power
- Reliance Power ICRA downgraded borrowings worth Rs 8,015 crore of the company to ‘Default’. Company continues to remain in the non-cooperating category. (Press release)
- NMDC Karnataka High Court has allowed the writ petition in Donimalai case and set aside the condition imposed to levy premium equivalent to 80 percent of average sale price of the iron-ore as published by Indian Bureau of Mines.
- Mindtree board appointed AM Naik as non-executive chairman with effect from July 18. He is the group chairman of L&T.
- DFM Foods stated that they will commission a new extrusion line which will add 5,000 MT per annum capacity for an investment of Rs 20 crore and have also taken an industrial premise on a long term-lease in UP.
- Punjab and Sind Bank reported fraud of Rs 238.3 crore in Bhushan Power and Steel account. Provisions of Rs 189.35 crore have been made, according to prudential norms. Bank said that the company has misappropriated bank funds, manipulated books of accounts to raise funds from consortium lender banks.
- Dewan Housing Finance defaulted in payment of interest on NCDS, amounting to Rs 23.75 crore, which were due on July 16. Besides, the board plans to meet on July 22 to consider and approve joint statutory auditors reports, matters related to AGM and March quarter results.
- Torrent Pharma: U.S. FDA classified company’s Dahej facility as Official Action Initiated. The inspection was undertaken in March.
- Allahabad Bank reported fraud of Rs 688.27 crore in SEL Manufacturing and the NPA account has been fully provided for this amount.
- Oil India stated in their press release that they have been awarded 12 oil and gas blocks under Open Acreage Licensing Policy of the government.
- Suzlon Energy stated in their press release that company is working on holistic solutions for its debt and all the secured lenders of the company and certain arms have signed an inter-creditor agreement in terms of RBI Circular for resolution of the debt of the group.
- Strides Pharma clarified that it had received warning letter from U.S. FDA for its Puducherry facility. On May 6 the, U.S. FDA had classified this facility as Official Action Initiated. The pharma company stated that the afore mentioned site produces six ANDAs which will not be impacted by the current development, but 10 ANDAs pending approval from the site will get deferred till the site is reclassified.
- Newgen Software Technologies secured patent for automated assessment of scanned documents.
- Eveready Industries India Ratings and Research has downgraded long term credit rating to ‘IND BBB-’ from ‘IND BBB’, with a negative rating watch.
- Jammu Kashmir Bank stated in its annual report 11 cases of frauds were reported to the RBI involving an amount of Rs 182.9 crore for financial year 2019.
- 8K Miles Software Services postponed its board meeting for quarterly results from July 18 to a later date.
- CARE Ratings sends its Managing Director Rajesh Mokashi, on leave with immediate effect on an anonymous complaint received by SEBI. The board has appointed TN Arun Kumar as interim CEO.
Commodity Cues: Brent Crude Extend Declines
- Brent crude extended declines for the third consecutive trading session, down 1.07 percent.
- West Texas Intermediate crude fell 0.4 percent to $56.58 a barrel.
- Gold was little changed at $1,424.72 an ounce.
London Metal Exchange
- Copper ended a two-day gaining streak, closed 0.53 percent lower.
- Lead extended gains for the eighth consecutive trading session, closed 1.06 percent higher.
- Aluminium ended a two-day gaining streak, closed 0.16 percent lower.
- Nickel extended gains for the sixth consecutive trading session, closed 2.7 percent higher.
- Tin ended 0.42 percent lower.
- Zinc closed 0.3 percent lower after gaining for five consecutive trading sessions.
Nifty Futures Suggests Stock Losses; Asian Stocks Decline
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.23 percent to 11,647 as of 7:50 a.m.
Stocks in Asia retreated and the yen climbed amid concern a trade spat between South Korea and Japan may be protracted and investors weighed a flurry of corporate earnings.
Japan’s Topix index fell more than 1 percent, on course for a fourth day of losses. A drop in Hong Kong, South Korean and Australian equities was more modest. Futures on the S&P 500 Index and Nasdaq dipped.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
Source: Bloomberg
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