KEY HIGHLIGHTS
Closing Bell: Sensex, Nifty End Lower After Choppy Trade
Indian equity benchmarks ended little changed as the gains in Bajaj Finance Ltd. and Sun Pharmaceutical Industries Ltd. were offset by losses in Titan Company Ltd.
The S&P BSE Sensex and the NSE Nifty 50 ended little changed at 38,730.82 and 11,555.90. The broader market index represented by the NSE Nifty 500 Index ended 0.1 percent higher.
Titan—India’s largest jewellery maker clocked its steepest fall in over a decade after predicting a muted first quarter as Asia’s third-largest economy faces a slowdown.
Besides, Bajaj Finance registered its biggest gain in over eight months its AUM rose 41 percent on a yearly basis to AUMs at 1.29 lakh crore in the three months ended June.
The market breadth was tilted in favour of buyers. About 871 stocks declined and 860 shares declined on National Stock Exchange.
Seven out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty FMCG Index’s 0.9 percent fall. On the flipside, the NSE Nifty Realty Index was the top sectoral gainer, up 2.8 percent.
Block Deal Alert: Petronet LNG
About 11.2 lakh shares of Petronet LNG changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.
Delhi High Court To Naresh Goyal: Deposit Rs 18,000 Crore To Fly Abroad
The Delhi High Court on Tuesday refused to allow Jet Airways (India) Ltd.’s founder Naresh Goyal to go abroad and sought response from the central government on his plea challenging a lookout circular issued against him.
Goyal may deposit Rs 18,000 crore guarantee if he wants to travel abroad now, said Justice Suresh Kait, adding that no interim relief can be granted to him at this stage.
Read more here.
Source: PTI
Meghmani Organics Forecasts 12-15% Topline Growth In FY20
Meghmani Organics Ltd. projects its revenue at 12-15 percent for the current financial year, its Chief Financial Officer GS Chahal said.
“The company will be able to sustain margins at current levels in 2019-20,” Chahal told BloombergQuint in an interaction.
Shares of the pigments and agrochemical maker rose nearly 3 percent intraday to Rs 62.80.
Maruti Suzuki Extends Decline; Shares At Over Two-Year Low
Shares of Maruti Suzuki extended fall for the third consecutive trading session, their longest losing streak in nearly a month.
The stock fell nearly 2 percent intraday to trade at over a two-year low at Rs 5,915.
The Relative Strength Index was below 30, indicating that the stock may be overbought, according to Bloomberg data. Of the shares traded, 44 percent were at the ask price and 36 percent were at the bid.
Fab Four Stocks Of The Day
Glenmark Pharma
- Stock rose as 3.7 percent to Rs 452.75.
- The company received an ANDA approval for Ranolazine extended release tablets, 500 mg and 1000mg
NLC India
- Stock snapped two-day losing streak and rose as much as 8.2 percent to Rs 66.85.
- Trading volume was two times its 20-day average, Bloomberg data showed.
Sun Pharmaceutical Industries
- Stock rose as much as 7.7 percent, the most since Aug. 14, 2018, to Rs 395.
- The scrip was the best performer on the NSE Nifty Pharma Index.
Bharat Electronics
- Stock rose as much as 5.9 percent to Rs 107.20
- Fresh longs seen with high OI of 9.3 percent.
Market Check: Titan’s Plunge Offsets Rally In Sun Pharma, Bajaj Finance As Sensex, Nifty Head For Close
Indian equity benchmarks struggled to recover as the gains in Sun Pharmaceutical Industries Ltd. and Bajaj Finance Ltd. were offset by losses in Titan Company Ltd.
The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 38,709 and 11,547 respectively as of 3 p.m.
The market breadth was slightly tilted in favour of sellers. About 881 stocks declined and 856 shares advanced on National Stock Exchange.
Mindtree Set For Longest Losing Streak In Nearly Two Years
Shares of Mindtree fell for the fifth consecutive trading session, their longest losing streak in nearly two years.
The information technology company pared losses to trade 0.41 percent down at Rs 766.10. The stock fell as much as 4.43 percent intraday. The scrip traded at 15 times its estimated earnings per share for the coming year.
Last week, the company said its Chief Executive Officer Rostow Ravanan, Chairman Krishnakumar Natarajan and Vice Chairman Parthasarathy NS resigned.
Europe Stocks Drop After Danske Bank to BASF Warn on Profits
European equities declined as investors eyed profit warnings and earnings declines.
Dilip Buildcon Swings After Receiving Highway Project Completion Certificate
Shares of Dilip Buildcon flcuated between gains and losses to trade 0.5 percent lower at Rs 427.95.
The company received a highway project completion certificate for four laning of Lucknow- Sultanpur Section of NH-56, according to its statement on the exchanges.
“The infrastructure company is entitled for maximum bonus of Rs. 37.9 crore in lieu of earlier completion of the said project,” the statement added.
Max Financial Gains The Most In Over A Month
Shares of Max Financial Services rose as much as 4 percent, the most in over a month, to Rs 416.45.
The Economic Times, yesterday reported that Axis may have to fork out more to hike the company’s stake, quoting people aware of the regulator’s directive.
Max Financial, however, news said that the news is ‘incorrect and baseless’. “Max Financial wishes to clarify that it has not approached the Insurance Regulator IRDAI with any proposal for Axis Bank purchasing 10 percent stake in its life insurance subsidiary, Max Life Insurance Company Ltd.,” it said in a statement on the exchanges.
Market Check: Sensex, Nifty Trade Lower
Indian equity benchmarks declined during the afternoon trade.
The S&P BSE Sensex fell 100 points to 38,624 as of 2 p.m. and the NSE Nifty 50 fell 0.3 percent to 11,522.
The market breadth was tilted in favour of sellers. About 901 stocks declined and 797 shares advanced on National Stock Exchange.
TCS Falls Ahead Of Q1 Results Announcement
Shares of Tata Consultancy Services fell as much as 3.3 percent to Rs 2,104.55.
The country’s largest firm by market capitalisation is set to announce its quarterly results for the three months ended June.
Here’s are the consensus forecast by the analysts tracked by Bloomberg:
Q1 Preview (QoQ)
- $ revenue seen 1.2 percent higher at $5536 million.
- Revenue 1.2 percent higher at Rs 38,476 crore.
- EBIT seen 2 percent lower at Rs 9,349 crore.
- EBIT margin seen at 24.3 percent versus 25.1 percent.
- Net profit 3.4 percent lower at Rs 7,853 crore.
Market Commentary: Nifty’s Support Range At 11,400-11,300 On Lower Side, Reliance Securities Says
The Nifty has violated its medium-term moving average 50-day EMA, indicating a short-term weakness in the index, according to Reliance Securities’ research report. “Due to second consecutive plunge in the index and another bearish formation on the daily chart, its major technical indicators turned in favour of bears, coincides with our short-term view,” the report added.
The research firm sees support in the range of 11,400-11,300. “In case of pullback, it’s medium-term and short-term moving averages will call the upmove, which are placed in the range of 11,770-11,800,” it said.
Commenting on today’s trade, the brokerage company said, “The Nifty’s support is placed at around 11,425 and then at 11,300 levels, while resistance is observed at 11,650 and then at 11,770 levels.
Zee Media MD Ashok Venkatramani Resigns, Shares Fall
Zee Media Corporation’s Managing Director Ashok Venkatramani has decided to step down, the media firm said in a stock exchange filing.
Shares of the company fell as much as 5.5 percent to Rs 12.05 after the announcement.
The stock had declined 53 percent in the past 12 months compared to a 7.6 percent gain in the Sensex, according to Bloomberg data.
Sintex Industries Defaults On Payment Of Interests On Rs 250-Crore Bonds
Sintex Industries said in an exchange notification that it has defaulted on payment of interests on Rs 250-crore bonds.
“Present liquidity crisis is temporary and will not affect its going concern, the company said.
Market Check: Sensex, Nifty Volatile
Indian equity benchmarks traded volatile after the gains in Sun Pharmaceutical Industries Ltd. and Bajaj Finance Ltd. were offset by losses in Titan Company Ltd.
The S&P BSE Sensex traded 61 points lower at 38,663 as of 1 p.m. and the NSE Nifty 50 fell 0.23 percent to 11,531. The broader market index represented by the NSE Nifty 500 Index fell 0.19 percent.
Global Markets Update: Stocks Slip in Lackluster Trading
Asian stocks retreated in muted trading Tuesday after their U.S. counterparts slipped overnight.
- The MSCI Asia Pacific Index fell 0.3 percent.
- Topix Index fell 0.2 percent.
- Kospi Index dropped 0.5 percent.
- S&P/ASX 200 fell 0.2 percent.
- Hang Seng Index fell 0.6 percent.
- Shanghai Composite Index fell 0.3 percent.
- S&P 500 futures fell 0.3 percent.
Catch all the global markets update here.
Source: Bloomberg
BQ Blue Exclusive: India’s Portfolio Managers Suffer Worst Loss In Six Months In June
India’s top portfolio managers suffered the worst loss in six months in June as shares of auto and consumer goods makers fell.
This after the benchmark indices scaled lifetime highs on June 3 after Prime Minister Narendra Modi returned to power with an even bigger majority. But since then India’s stock market has remained volatile as investors expected the government to announce measures to boost the economy in the budget.
Click here to read the full story.
Catch all the BQ Blue Exclusives here.
Money Market Update: Rupee Reverses Loss
The Indian rupee revered its losses against the U.S. dollar. The home currency traded little changed at 68.64 against the greenback.
Pharma Shares Advance; Sun Pharma Top Performer
The NSE Nifty Pharma Index advanced over 3 percent, led by the gains in Sun Pharmaceutical Industries Ltd. and Piramal Enterprises Ltd.
Market Check: Sensex, Nifty Pare Losses
Indian equity benchmarks parred losses, led by the gains in Reliance Industries Ltd. and Bajaj Finance Ltd.
The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 38,726 and 11,553 as of 11:40 a.m. The 31-share index had declined over 250 points intraday and the 50-stock index had fallen below its 20-day moving average.
Bajaj Finance Jumps The Most In Nearly Two Months
Shares of Bajaj Finance rose as much as 5.6 percent, the most since May 17, to Rs 3,603. The stock ended 8.2 percent lower yesterday.
Customer franchise as of June 30, 2019 stood at approximately 36.9 million compared to 28.3 million a year ago period, according to its stock exchange filings.
Key highlights:
- The company acquired 2.5 million new customers during June quarter.
- New loans booked during the first quarter was at 7.3 million versus 5.6 million YoY.
- AUMs at 1.29 lakh crore versus Rs 91,287 crore YoY, up 41 percent.
REC Falls For Fourth Day, Shares Drop 11%
Shares of REC extended declines for the fourth consecutive trading session, their longest losing streak in nearly two months.
The stock fell as much as 10.5 percent, the most since Nov. 28, 2018, to Rs 143.60. The scrip declined 14.3 percent in the past four trading sessions.
The index maintenance sub-committee of NSE Indexes decided to exclude the stock from the Nifty CPSE Index of state-run companies, according to a Bloomberg report. The exclusion of the stock from the index will be effective from July 15, the report added.
Trading volume was more than four times its 20-day average, Bloomberg data showed.
Sectoral Indices Check: Nifty Realty Index Top Sectoral Performer
Five out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Realty Index’s 1.7 percent gain. On the flipside, the NSE Nifty IT Index was the top sectoral loser, down 0.98 percent.
Market Check: Sensex, Nifty Trade Lower
Indian equity benchmark continued to trade lower, extending their fall for the third consecutive trading session.
The S&P BSE Sensex fell nearly 200 points to 38,525 as of 11 a.m. and the NSE Nifty 50 traded around, 11,500, down 0.5 percent. The broader market index represented by the NSE Nifty 500 Index fell as much as 0.4 percent.
Earnings Corner: Citi Research On How Companies Will Report Q1 Results
Citi research expects earnings of the 150-odd companies tracked by it to grow 3 percent year-on-year. It expects the earnings of S&P BSE Sensex and NSE Nifty 50 Index constituents to grow 24 percent and 6 percent year-on-year.
However, barring the financial sector, it sees a 13 percent decline in corporate earnings. The three struggling sectors may post a decline of around 20 percent over last year, Citi said in its note.
Read the full story and watch the full interaction here.
Nifty Falls Below 100-DMA
The NSE Nifty 50 fell below its 100-day moving average of 11,499. The 50-stock index had fallen below its 50-day moving average yesterday.
Yes Bank Top Performer On Sensex, Nifty
Shares of Yes Bank extended gains for the second consecutive trading session and rose as much as 4.1 percent to Rs 97. The stock had surged 7.3 percent intraday during yesterday’s trade.
This after the Mumbai-based lender refuted speculations over the lender’s board and management stability, asset portfolio, future growth prospects, among other things which have emerged over the past few weeks, according to its statement on the exchanges yesterday.
“We suspect it is a deliberate and malicious attempt to create instability in the institution by undermining investor and client confidence. We have apprised the authorities of these developments,” Yes Bank said.
Besides, the company said that its financial position is sound and stable and its liquidity and operating performance continue to be robust.
F&O Check: Nifty 11,600 Call Option Falls Over 44%
Nifty’s 11,600 call option contract was among the most active Nifty option contracts on National Stock Exchange.
Premium on the contract fell 44.09 percent to Rs 23.40. Over 11 lakh shares were added to the open interest which stood at over 24.02 lakh shares.
Market Update: Sensex Drops 200 Points; Nifty Below 11,500
Indian equity benchmarks remained under pressure, extending their fall for the third consecutive trading session.
The S&P BSE Sensex fell over 200 points to 38,510 as of 10 a.m. and the NSE Nifty 50 traded below, 11,500, down 0.6 percent. The broader market index represented by the NSE Nifty 500 Index fell as much as 0.6 percent.
Titan was in focus as the stock fell over 11 percent after predicting a muted first quarter as Asia’s third-largest economy faces a slowdown.
Oberoi Realty Falls After BofAML Downgrade
Shares of the property developer declined for the third session and fell as much 3.8 percent to Rs 532.25.
Brokerage and research firm BofAML downgraded its recommendation on the stock to 'Neutral' from 'Buy'. The price target was fixed at Rs 627, indicating a potential upside of 13 percent from previous close.
- Here's what else BofAML had to say on the stock:
- New affordable housing definition to hurt long term growth.
- Change in definition to not impact current project.
- Rich valuations offer limited upside.
Click here to read today’s analysts’ recommendation to their clients
OMCs Rally On Falling Crude Prices
Shares of the oil marketing companies rallied in today’s trade.
This after the Brent crude extended fall for the second consecutive trading session. The Asian crude benchmark fell as much as 0.6 percent to $63.76 a barrel.
HDFC Extends Fall For Third Day
Shares of HDFC extended declines for the third consecutive trading session, their longest losing streak in nearly a month. The stock fell as much as 2.2 percent to Rs 2,209.30.
The housing finance company has planned to sell bonds worth Rs 5,000 crore on July 10.
The stock traded at 31 times its estimated earnings per share for the coming year, according to Bloomberg data. The stock declined 2.6 percent in the past five days and rose 0.5 percent in the past 30 days.
Titan Worst Performer On Nifty Post Q1 Update
Shares of Titan extended fall for the fourth consecutive trading session. The stock fell as much as 10.9 percent, the most since Nov. 09, 2016, to Rs 1,116.
India’s largest branded jewellery and watchmaker, joins consumption-oriented peers predicting a muted first quarter as Asia’s third-largest economy faces a slowdown. A “tough macro-economic environment” has impacted consumption and rising gold prices in June further deterred customers from buying jewellery, Titan said in a statement. (Read more here).
Trading volume was almost 14 times its 20-day average, Bloomberg data showed. Of the shares traded, 39 percent were at the ask price and 46 percent were at the bid.
Opening Bell: Sensex, Nifty Open Lower
Indian equity benchmarks extended declines for the third consecutive trading session.
The S&P BSE Sensex fell as much as 252 points or 0.65 percent to 38,468.75 and the NSE Nifty 50 fell as much as 0.69 percent to trade below 11,500. The broader market index represented by the NSE Nifty 500 Index fell as much as 0.64 percent.
The Nifty is not expected to fall beyond 11,495 or 11,400 for the time being, according to Geojit Financial Services. A bounce back from any of these supports should push index higher towards 11,625/11,760 region, the research firm said in a report.
The market breadth was tilted in favour of sellers. About 773 stocks advanced and 557 shares declined on National Stock Exchange.
Nine out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty PSU Bank Index’s 1.1 percent decline. On the flipside, the NSE Nifty Pharma Index was the top sectoral gainer, up 0.34 percent.
Money Market Update: Rupee Opens Lower
The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.06 percent against the greenback.
Pre-Market Check: Sensex, Nifty Set For Subdued Start
Indian equity benchmarks are set for there are set to open subdued.
The S& BSE Sensex rose 93 points to 38,835 during the pre-market and the NSE Nifty 50 traded below 11,550, down 0.1 percent.
In the currency market, the Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.06 percent against the greenback.
BQ Heads-Up: Fund Flows, Indian ADRs, Insider Trading And More
Your Complete F&O Trade Setup
July Futures
- Nifty futures closed at 11,566, premium at 7.7 points versus 10 points.
- Nifty futures open interest went up 1 percent , added 1 lakh shares in open interest.
- Bank Nifty futures closed at 30,689, premium of 85 points versus 28 points.
- Bank Nifty futures across series open interest down 1 percent, sheds 26,000 shares in open interest.
Options
- Nifty PCR at 0.88 versus 1.09 (across all series).
Nifty Weekly Expiry 11-July
- Max open interest on call side at 12,000 (37.3 lakh shares).
- Max open interest on put side at 11,500 (12.2 lakh shares).
- Open interest addition seen in 11,700C (+31 lakh shares), 11,800C (+15.3 lakh shares).
- Open interest shedding seen in 11700P (-8.2 lakh shares), 12,200C (-7.2 lakh shares).
Nifty Monthly Expiry 25-July
- Max open interest on call side at 12,000 (29 lakh shares).
- Max open interest on put side at 11,300 (15.6 lakh shares).
Stocks in F&O Ban
- DHFL
- Reliance Capital
Trading Tweaks: GAIL, Monnet Ispat, Religare Enterprises
- GAIL ex-date share bonus at 1:1.
- Rushil Decor to move into short term ASM Framework.
- Monnet Ispat & Energy, Praxis Home Retail, Signet Industries to move out of short term ASM Framework.
- Religare Enterprises price band revised to 10 percent.
- GSS Infotech, Igarashi Motors price band revised to 5 percent.
Pledge Share Details: Bajaj Consumer Care, Emami, JSP
- Sterlite Technologies promoter Twin Star Overseas released pledge of 20.94 crores on June 10.
- Emami promoters created pledge of 23 lakh shares and revoked 44.3 lakh shares from July 3-5.
- Sadbhav Engineering promoter Vikram Patel created pledge of 6.48 lakh shares on July 28.
- Himatsingka Seide promoter Bihar Mercantile Union created pledge of 79.26 lakh shares on June 14.
- Orient Cement promoter Central Industries released pledge of 46 lakh shares on June 17.
- Future Consumer promoter Future Capital Investment revoked pledge of 7.76 lakh shares on July 7.
- Jindal Steel & Power promoter group OPJ Trading revoked pledge of 52 lakh shares on July 5.
- Bajaj Consumer Care promoter Bajaj Resources revoked pledge of 1.4 crore shares on July 5.
Q1 Earnings Corner: TCS, Delta Corp, Steel Strips Wheels
Nifty Earnings To Watch
- Tata Consultancy Services
Earnings Reaction To Watch
Delta Corp (Q1, YoY)
- Revenues down 0.4 percent to Rs 186.5 crore.
- Net profit up 2.7 percent to Rs 42.5 crore.
- Ebitda up 1.5 percent to Rs 67.7 crore.
- Margin widens to 36.3 percent from 35.6 percent.
- Gaming Operations segment revenue up 3 percent to Rs 181.4 crore.
Steel Strips Wheels (Q1, YoY)
- Revenues down 6 percent to Rs 470.6 crore.
- Net profit down 31.6 percent to Rs 14.7 crore.
- Ebitda down 12.7 percent to Rs 55.7 crore.
- Margin narrows to 11.8 percent from 12.7 percent.
- Results not comparable as company’s SSWL Mehsana’s plant financial impact visible in the first quarter this fiscal.
Stocks To Watch: HDFC, Hero MotoCorp, Titan
- Titan Q1 Update: The company stated that the quarter witnessed a tough macro-economic environment with consumption being hit. Jewellery segment’s revenue increased 13 percent as the company stated that sharp increase in gold prices dented consumer demand significantly in June, while sales on Akshaya Tritiya was robust.
- Hero MotoCorp: Raised prices of its two-wheeler segment by 1 percent with effect from July 8.
- Meghmani Organics: Urm completed installation of Chlormethane project with capacity of 40,000 MT per annum in the existing caustic chlorine complex in Gujarat. The company has also commenced the commercial production from this plant with effect from July.
- Larsen and Toubro: To merge its shipbuilding arm with self.
- HDFC: has planned to sell bonds worth Rs 5,000 crore on July 10.
- Goa Carbon: June production up 32 percent at 15,799.3 MT versus 1,1951 MT. Company’s turnover up 11 percent at Rs 138.91 crore versus Rs 124.72 crore.
- Century Textiles & Industry: NCLT approved demerger among the company, UltraTech Cement, and their respective shareholders and creditors.
- Prataap Snacks: Malabar India Fund increased its take in the company by 0.59 percent to 5.57 percent.
- Reliance Industries has partnered with Turkey’s textile company Kıvanç Tekstil, to manufacture and market textile fabrics and the Turkish company will also be an exclusive distributor of Reliance Industries’ product Recron.
- Fortis Healthcare: Mauritius arm completed sale of its entire 29 percent stake in MSCL for MUR 393.6 million, or Rs 74.83 crore.
- Max Financial Services: ICICI Pru MF decreased stake by 0.11 percent in the company to 4.08 percent.
- Marico: stated in their annual report that for the financial year 2020 and beyond they have retained 8-10 percent volume growth in India and the company will also increase advertising expenses to almost 10 percent of sales on an annualized basis.
- HCL Technologies: stated that NLC Insurance companies have started using its digital solutions platform.
- Voltas: has partnered with Energy Efficiency Services to manufacture and sell five-star rated Inverter ACs.
- NHPC: stated in their press release that two units of Bara Suil Power Station has started electricity generation with effect from July 6-7.
- SH Kelkar: Share buyback period to start from July 15-26.
Commodity Cues: Brent Crude Below $64 A Barrel
- Brent crude extended fall for the second consecutive trading session, down 0.39 percent to $63.86 per barrel.
- West Texas Intermediate crude dipped 0.4 percent to $57.43 a barrel Tuesday.
- Gold was little changed at $1,394 an ounce.
London Metal Exchange
- Copper ended lower for the second consecutive trading session, down 0.17 percent.
- Lead ended 0.8 percent higher.
- Tin ended higher 0.79 percent higher.
- Zinc ended lower for the fourth consecutive trading session, down 1.2 percent lower.
- Aluminium resumed gains after a one-day blip, down 0.33 percent.
- Nickel ended higher for the second consecutive trading session, up 1.92 percent.
Also Read: Gold Sees Wildest Price Swings Since 2016
Nifty Futures Suggests Subdued Start; Asian Stocks Drift in Lackluster Trading
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fluctuated between gains and losses to trade little changed at 11,559 as of 8:10 a.m.
Asian stocks saw muted trading Tuesday after their U.S. counterparts slipped overnight, with Treasuries little changed. The yen dipped to the lowest since late May. Stocks pared gains in Japan, fluctuated in South Korea and slipped in Hong Kong and China.
S&P 500 futures edged lower after U.S. equities fell for a second day as investors took a cautious approach in a week full of central bank activity.
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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