Nifty Closes Above 10,000 For The First Time

Indian equity benchmarks closed at record high amid a bevy of better-than-anticipated corporate earnings. A broad-based rally in commodities including iron ore and copper helped an index of metals companies reach its highest level in almost three years.

The S&P BSE Sensex Index rose 0.5 percent to 32,382 while the NSE Nifty climbed over 0.5 percent to 10,020. This was the 51-share index’s first close above the 10,000-mark. Yes Bank Ltd. and IndusInd Bank gave the biggest boost to the broad gauge.

Shares of the country’s fourth largest private sector lender rose as much as 4.1 percent after reporting June quarter profit that beat street estimates, along with a stock split announcement.

• Net income Rs 966 crore versus estimate of Rs 948 crore
• Gross bad loans 0.97 percent of total end-June versus 1.52 percent end-March
• Q1 provisions Rs 286 crore versus Rs 207 crore year earlier
• Interest income Rs 4,650 crore versus Rs 3,800 crore YoY, expense Rs 2,840 crore versus Rs 2,550 crore; net interest income estimate of Rs 1,790 crore
• Other income Rs 1,130 crore versus Rs 961 crore
• Net interest margin 3.7 percent versus 3.6 percent in previous quarter
• Board approves splitting each share into 5; seeks shareholder nod

Shares of the mortgage lender pared their gains after it reported its June quarter earnings.

• Net profit at Rs 1,556 crore versus Bloomberg estimate of Rs 1,793 crore (YoY)
• Net profit down 16.8 percent to Rs 1,556 crore versus Rs 1,871 crore (YoY)
• Income from operations up 9 percent to Rs 8,129 crore versus Rs 7,461 crore
• Gross NPA at 1.24 percent for end-June versus 1.05 percent end-March
• Provisions at Rs 85 crore versus Rs 148 crore (QoQ)

The company’s board approved merger of five of its units with self. The company also proposed to raise up to Rs 35,000 crore via non-convertible debentures on private placement basis.

• ICICI Bank has 12.4 lakh shares change hands in a single block

Shares of the power transmission company posted the highest intraday jump since May 2009 after the company reported a net profit of Rs 61.7 crore during the April-June quarter compared to a loss of Rs 197 crore during the corresponding quarter last year.

The stock hit an upper circuit of 20 percent, the most since May 20, 2009. The stock is the best performer on the S&P BSE500 index.

The relative strength index (RSI) at 79 indicates that the stock may be overbought.

The stock has gained 31.85 percent on a year-to-date basis, as compared to S&P BSE Sensex index, which has gains of 21 percent for the same period.

Shares of KPIT Technologies Ltd. fell as much as 4.52 percent, the most in a month after 1.83 crore shares exchanged hands in six block deals on the National Stock Exchange.

The transaction, worth Rs 197 crore, took place at a price band of Rs 120-122. The buyers and sellers of the transaction were not immediately known.

The consensus price target of analysts tracked by Bloomberg stands at Rs 133.21, is 10.2 percent higher than the current market price.

Note: Warhol Ltd. has 9.87 percent stake in the company as of March 31, Bloomberg data showed.

Shares of Pidilite Ltd. fell as much as 3.73 percent, the most in a month after its net profit during the April-June quarter fell 16.8 percent on year-on-year basis.

While the company's revenue declined 1.3 percent to Rs 1,669.3 crore, EBITDA declined 18.5 percent to Rs 321 crore.

The stock is the top loser on the BSE500 index. The stock is currently trading near its 50-day moving average.

Bharat Financial Inclusion Ltd. reported a net loss of Rs 37.05 crore during the April-June quarter, compared to a net profit of Rs 236 crore during the corresponding period last year.

The company's revenue from operations grew 11.5 percent year-on-year to Rs 411.2 crore while provisions increased 13 percent sequentially to Rs 463.1 crore.

A deferred tax of Rs 291 crore has not been recognized in the quarter, the company said in a statement.

The company has reiterated its earlier guidance of a net profit of Rs 435 crore for FY18.

Shares swung between gains and losses and were trading 1.3 percent higher at Rs 803.6 on the National Stock Exchange.

Shares of the renewable energy solutions provider gained as much as 4.23 percent to Rs 19.70 after it secured a 50.40 MW order from Saudi-based Alfanar Energy.

The order involves installation of 24 units of 2.1 MW wind turbine generators. The project is scheduled to be completed by March 2018.

The stock has gained almost 42 percent on a year-to-date basis, which is twice the gains of the S&P BSE Sensex index, which has gains of 21 percent for the same period.

The consensus price target of analysts tracked by Bloomberg stands at Rs 27.43 and is 40.3 percent higher than the current market price.

Shares of Vedanta Ltd. gained as much as 2.77 percent to surge to its highest level since September 2014, after a rise in copper and lead prices across the globe.

Copper on the London Metal Exchange traded at a 5-month high while Lead gained 2.6 percent in Tuesday's trade. Zinc ended 1.7 percent higher. The stock's American Depository Receipts (ADR) ended 4.74 percent higher on Tuesday.

The company also posted its April-June quarter earnings on Tuesday, saying that it has managed to reduce its consolidated debt by Rs 9,000 crore. The stock gained for the second day in a row.

The Bloomberg consensus price target of Rs 307.65, is 9.8 percent higher than the current market price. 95.5 percent of the analysts tracked by Bloomberg, who have coverage on the stock, have a 'Buy' recommendation for the same.

The stock has gained close to 30 percent in 2017, outperforming the S&P BSE Sensex index, which gained 21 percent during the same period.

Shares of the private lender fell as much as 2.14 percent, the most in a month after it reported a decline in net profit during the April-June quarter. The decline in net profit was the sixth quarter in a row.

Gross non-performing assets remained flat on a sequential basis at 5.03 percent while net non-performing assets stood at 2.3 percent compared to 2.11 percent in the previous quarter.

The bank's Net Interest Margins will continue to remain under pressure, Chief Financial Officer Jairam Sridharan told BloombergQuint over phone.

The bank has moved largely in line with the benchmark index, gaining 19.33 percent in 2017 while the index has gained 21 percent during the same period.

Shares of the state-owned fertiliser company dropped as much as 6.8 percent after the government said it will sell 7.35 lakh shares or 15 percent stake in the company via an offer-for-sale.

The OFS for non-retail investors will be open today, while the same for the retail investors will open tomorrow. The floor price of the offer has been set at Rs 72.80 per share.

The stock gained 111 percent so far this year, compared to 21 percent in the S&P BSE Sensex.

Indian stocks climbed, following a global equity market rally spurred on by a bevy of better-than-anticipated corporate earnings.

The S&P BSE Sensex rose 0.17 percent to 32,281 while the NSE Nifty 50 Index gained 0.22 percent to 9,986. The market breadth was firmly tilted in favour of the buyers at 4:1 on the National Stock Exchange.

The 51-share index breached the record 10,000-mark on Tuesday as the corporate earnings season for the April-June period so far has been encouraging, with most companies showing stronger growth than a year earlier.

Yield on sovereign bonds climbed two basis points in the last session after a television report said the government may not stick to its fiscal consolidation path. Though, later government officials denied any such slippage.

Nevertheless, the debt quota auction for foreign investors went off smoothly and was fully subscribed. The cutoff at 1.75 basis points highlights a strong demand for India debt among overseas investors.

For the remainder of the week, traders see a rangebound market in the run up to the RBI policy meeting next week. As of now, a 25 basis points rate cut is already factored into the prices. Yield on benchmark note may stay in a 6.40-6.45 percent range.

In the currency market, all eyes are on the Fed commentary after the FOMC meetings ends today. The Fed will unveil the timing of its balance sheet unwind in September and wait until December to raise interest rates again, according to a Bloomberg survey.

Until then, the market may trade light and rupee is likely to open lower and thereafter move within 64.30.64.45 range against the dollar.

Disclaimer: Stock recommendations and comments presented on BloombergQuint.com are solely those of the analysts and experts quoted. They do not represent the opinions of BloombergQuint.com on whether to buy, sell or hold shares of a particular stock.

• Nifty Bank continues to trade stronger than Nifty
• Nifty resistance at 10,000 with total open interest at 73.9 lakh shares
• Nifty support at 9,900 with total open interest at 63.7 lakh shares
• Call writers active at 10,000-10,050 levels; open interest addition of 6-9 lakh shares
• Put writers active at 9850-10,000 levels; open interest addition of 1-5 lakh shares
• Nifty Bank rolls at 35 percent compared to 3-month average of 30 percent
• Nifty rolls at 37 percent compared to 3-month average of 42 percent

• Lupin: Remains ‘Buy’ at UBS with a target price of Rs 1,340
• Cadilla: Initiated coverage at IDFC with a target price of Rs 588
• Axis Bank: Remained ‘Outperform’ at CLSA with a price target of Rs 600
• Bharti Infratel: Remained ‘Overweight’ at JPMorgan with a target price of Rs 450
• Vedanta: Remained ‘Outperform’ at IDFC with a target price of Rs 287

Asian Paints

• Remained ‘Neutral’ at Macquarie with a target price of Rs 1,110
• Remained ‘Neutral’ at Goldman Sachs with a target price of Rs 880
• Remained ‘Buy’ at Edelweiss with a target price of Rs 1,249

Hero MotoCorp

• Remained ‘Neutral’ at Citi with a target price of Rs 3,800
• Downgraded to ‘Sell’ at Kotak Securities with a price target of Rs 3,200

Bharti Airtel

• Remained ‘Underperform’ at CLSA with a target price of Rs 444
• Remained ‘Buy’ at CLSA with a target price of Rs 440

TD Power Systems

• Receives order for production and supply of traction motors
• Total order book stands at Rs 750 crore to be supplied over 10 years starting 2018

National Fertilizers

• Government to divest 7.35 crore shares or 15 percent stake in the company by way of offer for sale
• Issue price fixed at Rs 72.8 per share

• Suzlon: Wins order from Alfanar group for 50.40 MW wind power project to be completed by March, 2018
• Berger Paints: Union calls off strike at company’s Goa unit.
• Indraprastha Gas: Hikes prices of PNG and CNG in Delhi to offset GST costs

For a complete list of stocks to watch, click HERE!

• Tata Sons to hire Axis Bank’s Shikha Sharma to head financial services cluster
• Banks’ exposure to Telecom sector at Rs 97,681 crore: Finance Minister
• GST council sets up panel to select anti-profiteering agency members
• Axis Bank’s profit falls for sixth straight quarter
• Monnet Ispat bankruptcy: NCLT appoints resolution professional
• SIS India plans to use IPO proceeds to pare debt
• Ten public sector banks have submitted turnaround plans till now
• Hero Motocorp’s profit grows first time in three quarters
• Zinc prices, higher oil output boost Vedanta’s Q1 profit

Good Morning!

The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India, rose 0.14 percent to 9,987.

Most Asian stocks climbed following the advance in U.S. and European equities on the back of positive corporate earnings. More than 80 percent of S&P 500 companies have delivered earnings that have beaten forecasts so far this reporting period, helping to support optimism in the global economy.

Investors are also looking for clues from the Fed on how it plans to reduce the balance sheet, with policy makers seen keeping interest rates on hold as the U.S. central bank meeting concludes on Wednesday.

The euro held near the highest in almost two years after German business confidence data beat expectations.

West Texas Intermediate gained 0.96 percent and went past $48 a barrel mark. The commodity gained for a third straight session after industry data showed that U.S. crude stockpiles fell, easing the global glut.

Gold fell 0.25 percent to $1,247.95 an ounce.