How Did The Sectoral Indices Fare
Closing Bell: Markets Take A Pause
The five-day rally in the Indian equity markets came to an end in today's session with the Benchmark indices ending lower post a last-hour sell-off.
The S&P BSE Sensex ended 0.94% lower at 36,329, while the NSE Nifty 50 index 0.9% lower at 10,705.
Selling pressure was mainly due to banking stocks. The Nifty Bank index, ended 0.2% lower, but fell over 500 points from the day's high.
Among the top underperformers in today's trade include Auto, I.T. and Realty stocks. Both Nifty Auto and Nifty Realty index ended 1.95% lower while the Nifty I.T. index posted losses of 1.7%. The Nifty Media index too declined 1.6% in today's session.
Among those who bucked the trend were PSU Banks, Metals and FMCG stocks. PSU Bank index ended with gains of 2.3% while the Metal index gained 1.6%. FMCG and Pharma index gained 0.8% and 0.7% respectively.
Broader markets were flat but ended with a negative bias. The Nifty Midcap index fell 0.4% while the smallcap index fell 0.2%.
The India Volatility Index snapped a five-day losing streak, ending 4% higher at 26.09.
Market breadth ended in favour of the declines. 784 stocks on the NSE ended with gains while 1,054 stocks declined.
Better Days Ahead For Indian Pharma?
Buzzing Stock: Steel Authority Of India
- Top performing stock on the Nifty Midcap and second best on the Nifty Metal index
- Gains as much as 16% to Rs 37.65; now off the day's high
- Up for the third straight day
- Has gained 16% in the last three trading sessions
- Today's volumes are 6.4 times higher than its 30-day average
- Breaks above its 200-Day Moving average at 35.3
- Stock enters overbought territory with Relative Strength Index (RSI) at 72
- Has nearly doubled from 52-week low of Rs 20.1 on March 30, 2020
- 6 out of the 19 analysts tracking the stock have a buy recommendation; 8 sell calls
- The stock trades 22.1% above its 12-month consensus price target of Rs 28.2, implying a negative return potential
June Business Update: NCC
The company has informed the exchanges that it secured five new orders worth Rs 1,396 crore in the month of June.
All five orders pertain to the water division and have been received from various state government agencies, the company said in an exchange filing.
All the five projects need to be executed within a period of 15-24 months from the date of award, the company said.
The stock now trades little changed after gaining as much as 2.9% to Rs 34.1.
June Mutual Fund Data
- Total Mutual Fund industry flows down 90% to Rs 7,266 crore
- Equity inflows down 95% to Rs 240.55 crore
- Equity AUM up 9% to Rs 6,89,384.5 crore
- Total MF Industry AUM up 7% to Rs 26,06,946 crore
- Liquid funds saw outflow of Rs 44,226 crore as compared to an inflow of Rs 61,870.9 crore in May
- Balanced funds saw outflow of Rs 1,705 crore as compared to an outflow of Rs 978 crore in May
- All numbers compared on a month-on-month basis
Source: AMFI
Markets At 2:20 P.M.
- Benchmark indices look to gain momentum
- Nifty up 0.2% at 10,822
- Sensex up 0.15% at 36,728
- Nifty Bank up 1.9% at 23,055
- Nifty Midcap Index up 0.7%
- Nifty Smallcap Index up 1.2%
- India Volatility Index up 0.8% at 25.3
- Nifty I.T. remains the top sectoral laggard; down 1.2%
- Nify Auto is the other sectoral laggard; down 1%
- Nifty PSU Bank extends gains; up 5.3%
- Nifty Metal extends gains; up 3.6%
- Nifty FMCG and Nifty Pharma up 1.2% each
- IndusInd Bank remains the top Nifty gainer; up 7.9%
- Zee Entertainment is the top Nifty laggard; down 3.2%
- 1,005 stocks on the NSE trade with gains while 802 decline
Money Market Update
The currency ended lower for the third straight day - its longest losing streak in nearly a month.
The rupee ended above the mark of 75 for the first time in three sessions, ending at 75.02 against the U.S. Dollar as compared to Tuesday's close of 74.93.
Today's losses made rupee the second worst performing currency in Asia, after the Taiwanese dollar.
Yield on the 10-year government bond ended at 5.778% as compared to Tuesday's close of 5.793%.
Active Stock Options
- State Bank of India's 200 Call: Premium up 56.4% to Rs 7.9. The contract has added 8.1 lakh shares in Open Interest.
- IndusInd Bank's 600 Call: Premium up 86% to Rs 33.5. The contract has added 4 lakh shares in Open Interest.
- Bajaj Finance's 3,500 Call: Premium down 13% to Rs 134.9. The contract has added 16,750 shares in Open Interest.
Heavyweights Lead The Losses On The I.T. Index
Buzzing Stock: Uflex
- Trading at a 52-week high
- Gains as much as 7% to Rs 247
- Biggest single-day gain in a month
- Up for the third straight day
- Has gained 13.3% in the last three trading sessions
- Today's volumes are 1 times higher than its 30-day average
- Stock in overbought territory with Relative Strength Index (RSI) at 81
- Has more than doubled from 52-week low of Rs 118.25 on March 25, 2020
- Two analysts track the stock as per Bloomberg data and both have buy recommendations
Weak Start To Trade In Europe
Benchmark indices in Europe opened lower for the second day, as geopolitical risks play on the minds of traders.
The Stoxx 600 opened 0.6% lower with all sectors declining. Banks and oil & gas stocks were the primary laggards.
Asian markets are flat and mixed while futures on the Dow Jones too are little changed.
Brent Crude trades 0.2% lower at $42.98 per barrel while gold is little changed at $1,793.8/Oz, the highest since 2011.
Let's take a look at how benchmark indices across Europe have opened:
- Euro Stoxx 50 down 0.8% at 3,286
- DAX down 0.55% at 12,533
- CAC down 0.8% at 4,995
- FTSE 100 down 0.6% at 6,111
- IBEX 35 down 1.2% at 7,351
How Are The Sectoral Indices Faring
Stock Reaction: Indian Oil Corporation
- Work commenced on 336 projects after lockdown eased till June 30, 2020
- 50 more projects have resumed since July 1, 2020
- Targeted capex of Rs 26,143 crore for FY21
Projects where work has resumed:
- Paradip-Hyderabad products pipeline worth Rs 3,338 crore
- Augmentation of Paradip-Haldia-Durgapur LPG pipeline worth Rs 3,028 crore
- Ennore-Tiruvallur-Bangalore-Pondicherry-Nagapattinam-Madurai-Tuticorin R-LNG pipeline worth Rs 6,025 crore
- LPG Imports facility at Kochi worth Rs 714.25 crore
- LPG Imports facility at Paradip worth Rs 690 crore
- Expansion of Barauni refinery including the petrochemical plant worth Rs 14,810 crore
- Ethylene Glycol project at Paradip worth Rs 5,654 crore
Shares surged to the day's high, gaining as much as 2.1% to Rs 88, post the announcement.
Monthly Business Update: NBCC
The state-run construction company informed the exchanges that it secured total business worth Rs 431.6 crore for the month of June.
Out of the two projects that the company secured during the month of June - one is for the construction of Natural Draught Cooling Towers for Package-1 and Package-2 of 5x800 MW Yadadri plant on an EPC basis. The total cost of the project is Rs 284.63 crore.
The second is Project Management Consultancy services for construction and development of Students Hostel and Faculty apartments at IIT-BHU in Varanasi, for a total cost of Rs 147 crore.
Shares are off the day's high, after gaining as much as 3.65% to Rs 28.40. The stock is up for the third straight day.
Markets At Noon
- Benchmark indices continue to remain flat
- Nifty down 0.2% at 10,781
- Sensex down 0.2% at 36,594
- Nifty Bank up 0.8% at 22,810
- Nifty Midcap Index up 0.4%
- Nifty Smallcap Index up 0.7%
- India Volatility Index up 3.8% at 26.06
- Nifty I.T. is the top sectoral laggard; down 0.9%
- Nifty Auto and Nifty Realty down 0.7% each
- Nifty PSU Bank extends gains; up 4.4%
- Nifty Metal (up 1.6%) and Nifty Pharma (up 1.2%) are the other sectoral gainers
- IndusInd Bank remains the top Nifty gainer; up 8%
- Zee Entertainment remains the top Nifty laggard; down 2.7%
- 893 stocks on the NSE trade with gains while 848 decline
Stock Reaction: Ramco Systems
The global aviation software provider informed the exchanges that it will implement its Aviation M&E MRO Suite V5.8 at Tactical Air Support, a leading American defence contractor.
This is the third deal win for the company out of the top four defence adversary air operators in the U.S., the company said in a statement.
We are confident that this win will help us mutually strengthen our footprint in the Defense segment.Virender Aggarwal, CEO, Ramco Systems
Ramco Aviation Suite is compliant with International Traffic in Arms Regulations which will ensure significant cost savings, the company said.
Shares recovered from the day's low and are now locked in a 5% upper circuit at Rs 113.8, post the announcement.
Stock Reaction: NCL Industries Q1 Business Update
- Cement production down 16% to 4.65 lakh tonnes
- Cement dispatches down 12% to 4.84 lakh tonnes
- Cement boards production down 26% to 12,570 tonnes
- Cement boards dispatches down 47% to 8,075
- RMC production and sales down 44%
- Physical performance in terms of production and dispatches adversely impacted due to Covid-19
Shares gained as much as 7.6% to Rs 81, up for the third straight day.
Stock Reaction: Yes Bank
The capital raising committee of the bank approved the raising of funds in one or more tranches through a further public offer (FPO).
Bloomberg had reported on June 17 that the lender looked to raise around $1 billion through a public offer. Funds from the same would help push the bank's tier-1 core capital ratio to 10.5% from 6.5% as of March 31.
As of March 31, 2020, the bank’s CET-1 ratio and Tier-1 capital ratio stood at 6.3% and 6.5% compared to the minimum requirements of 7.375% and 8.875%, respectively.
Shares gained as much as 5.2% to Rs 27.1, snapping a three-day losing streak.
Buzzing Stock: AU Small Finance Bank
- Among the top performers on the Nifty midcap index
- Locked in a 5% upper circuit at Rs 656.25.
- Locked in an upper circuit for the third straight day
- Trades at the highest level in nearly four months
- Has gained in five out of the last six trading sessions
- Up 20% in the last six trading sessions
- Today's volumes are 2.4 times higher than its 30-day average
- Breaks above its 100-Day Moving Average of 649.5
- Stock in overbought territory with Relative Strength Index (RSI) at 74
- Has gained nearly 80% from its 52-week low of Rs 366 on May 27, 2020
- 12 out of the 23 analysts tracking the stock have a buy recommendation; 5 sell calls
- The stock trades 13.6% higher than its 12-month consensus price target of Rs 567, implying a negative return potential
Stock Reaction: Steel Strips Wheels
The company has won its first alloy wheels order from the European Union Market, it said in an exchange filing.
The order for the month of July consists of more than 3,100 CV wheels from the U.S. and EU market. The total order amounts to $1,40,000 and will be executed from the company's Mehsana plant.
Shares gained as much as 6.84% to Rs 465.6, post the announcement.
Strong Gains In The PSU Bank Index
Stock Reaction: Lupin
The drugmaker has voluntarily recalled its Metformin Hydrochloride Extended-release tablets in the U.S.
The recall has been done out of caution, in-line with the interactions ongoing with the U.S. FDA on NDMA impurity levels, the company said in an exchange filing.
Metformin Hydrochloride Extended-release tablets are marketed by Lupin's subsidiary in the U.S.
We believe that the issues identified in the concerned products are addressable and we expect to re-introduce our updated product(s) in the U.S. during the current quarter.Statement From Lupin
The company has separately clarified that the company's Metformin products in India have been assessed to be safe for patients and comply with all relevant regulatory norms.
Shares are trading near the day's high, gaining as much as 2.2% to Rs 889.65, post the announcement.
Markets At 10:10 A.M.
- Benchmark indices trade little changed
- Nifty unchanged at 10,796
- Sensex little changed at 36,647
- Nifty Bank up 0.6% at 22,765
- Nifty Midcap Index up 0.3%
- Nifty Smallcap Index up 0.5%
- India Volatility Index up 2% at 25.6
- Nifty Media and Nifty I.T. index down 0.7% each
- Nifty PSU Bank is the top sectoral gainer; up 3.2%
- Nifty Metal and Nifty Pharma up 1% each
- IndusInd Bank is the top Nifty gainer; up 4.5%
- Infosys is the top Nifty laggard; down 1.8%
- 885 stocks on the NSE trade with gains while 769 decline
Money Market Update
The rupee opened with gains today, after declining for two straight sessions on Monday and Tuesday.
The currency opened at 74.83 against the U.S. Dollar as compared to Tuesday's close of 74.90.
Credit Agricole, in a note on Tuesday said that gains in the rupee are short-lived and it is set to break past the 80 mark.
Within the bond markets, traders will keep an eye on treasury bill auctions worth Rs 35,000 crore. The government plans to sell 91-day, 182-day and 64-day treasury bills in the auction today.
Earnings Reaction: Shree Renuka Sugars
The sugar company reported a net loss of Rs 145.2 crore for the quarter ended March, which was higher than the loss of Rs 23.2 crore reported during the same period last year.
Ebitda rose 10.3% while margins expanded to 10.2% from 8.9% owing to lower raw material costs.
The company's net loss widened despite a forex gain of Rs 130.4 crore this quarter.
Deferred tax outgo and higher other income in the base quarter contributed to the net loss.
Shares are locked in a lower circuit of 5% at Rs 10.05, down for the fourth day in the last five sessions.
Coronavirus India Update
- 22,752 cases reported over the last 24 hours
- Total number of cases in the country at 7,42,417
- Active cases at 2,64,944
- Number of patients cured, discharged and migrated at 4,56,831
- Death toll rises to 20,642
- 482 deaths reported in the last 24 hours
- 16,883 patients recovered from the virus in the last 24 hours
Stock Reaction: State Bank of India
India's largest lender cut its three-month MCLR to 6.65% from July 10, comparable to the external benchmark linked lending rate.
The Bank in a statement said that the rate cut will boost credit offtake and revive demand in the market.
This is the 14th straight cut in MCLR according to the bank's exchange filing.
Shares are trading at the day's high, gaining as much as 2.3% to Rs 192.95, up for the third straight day.
Opening Bell: A Flat Start
Indian equity markets began the mid-week trade on a subdued note with benchmark indices opening flat.
The S&P BSE Sensex opened 0.17% higher at 36,738 while the NSE Nifty 50 index opened at 10,818, up 0.18%. Both the benchmarks gained for the fifth straight session on Tuesday.
All sectoral indices opened flat with Nifty Bank, Auto and Media index opening with gains of 0.3%. The Metals and Pharma index opened 0.4% higher.
952 stocks on the National Stock Exchange opened with gains while 523 reported losses.
Latest On The Coronavirus
- Total cases cross 11.8 million across the globe
- Death toll rises to 5.43 lakh
- Brazil President Jair Bolsonaro tests positive for Covid-19
- Total infections in the U.S. approach 3 million with states recording new highs
- U.S. gave a one-year notice to the United Nations as it plans to exit the WHO
- More the 100 cases reported in Tokyo for the sixth straight day
- No new cases reported in Beijing for the second straight day
- Colombia extends lockdown through August 1
Fund Flows
Key Stocks In Focus
- Titan: Complete loss of sale in April due to the lockdown. Revenue in May and June for Jewellery was 20% and 70% respectively as compared to corresponding months o fthe previous year. Revenue for watches and wearables business was at 5% and 20% respectively in May and June as compared to the previous year. Revenue for Eyewear business in May and June was 15% and 35% compared to the previous year.
- Yes Bank: Capital raising committee approves fund raising through a follow on public offer (FPO). Bloomberg on June 17 had reported that the bank looks to raise around $1 billion through this public offer.
- Adani Ports and SEZ: Board approved raising up to $1.25 billion via dollar denominated foreign currency bonds.
- CRISIL: NCLT approves scheme of arrangement between the company and CRISIL Ratings.
- Bharti Airtel: Launches new prepaid pack with content from ZEE5. Prepaid bundle is d at Rs 289 for a month and a Rs 79 top-up. It offers subscription of the entire ZEE5 catalogue for 30 days.
- CEAT: Jwalamukhi Investments reduced stake to 8.72% from 10.92% till July 6.
- BEML: Board has approved closure of its loss making arm Vignyan Industries.
- Ineos Styrolution: Exchanges have issued their in-principle approval for the delisting offer.
- Reporting Earnings Today: Dish TV, Kokuyo Camlin, South Indian Bank (For Q2FY20)
To know more about companies reporting earnings after market hours, brokerages on Titan and more, click here.
Your Trade Setup For The Day
A Check On Indian ADRs
U.S. Markets On Tuesday
- Benchmark indices snap five-day gaining streak
- S&P 500 sees six shares fall for every one that gained
- Amazon, Microsoft drag Nasdaq from its record high
- Airlines, hotel stocks underperform
- Gold rose to the highest since 2011
- Treasury yields dipped
- EIA oil inventory report to be released today
- Bloomberg Dollar spot index gained 0.4%
- West Texas Intermediate crude fell 0.8% to $40.32 per barrel
Get your daily fix of the global markets here.
Can Gains Extend To Day 6?
Good Morning!
Indian equity markets managed to eke out gains on Tuesday despite a volatile trading session. That's the second straight day of gains this week.
But the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was little changed at 10,779 as of 8:00 a.m.
Asian markets are mixed in mid-week trade as concerns remain over the economic impact of the Covid-19 pandemic.
Markets in Japan and Hong Kong are seeing modest gains, while those in China and Australia are declining.
Futures on the Dow Jones are trading higher by 50 points after the benchmark index ended 1.5% lower on Tuesday.
Treasuries have maintained overnight gains, while gold has traded near the highest since 2011.
Yield on the 10-year treasuries stood at 0.64% and West Texas Intermediate crude was flat at $40.61 a barrel.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
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