Sensex, Nifty Halt 2-Day Losses Led By Energy Shares 

Indian shares rose for the first time in three sessions, led by a rally in energy-related stocks.

The S&P BSE Sensex rose 0.1 to 31,292 while the NSE Nifty 50 Index advanced 0.1 percent as well to 9,765. Both the benchmarks are among the best Asian performers of 2017 as domestic funds and overseas investors have purchased more than $15 billion of local equities combined.

Ten out of 19 sector gauges compiled by BSE Ltd. advanced, led by the S&P BSE Oil & Gas Index’s 1.3 percent jump. The S&P BSE Utilities Index was the top loser, closing 0.75 percent lower.

Shares of the Delhi-based book publisher fell as much as 4.21 percent to Rs 471 after the company reported net loss of Rs 7.90 crore in June quarter.

The company's revenue from operations came in at Rs 29.35 crore against Rs 15.77 crore in same period year ago, according to its filings after market close.

The stock has dropped 33 percent below its listing price of Rs 707 in May.

• V-Mart Retail: Shares of the Delhi-based retailer matched its best performance of this year after it gained for a sixth day. The stock rose as much as 6.52 percent to record high of Rs 1,549.90.
• Aptech: Shares of the Mumbai-based education and training company jumped as much as 7.66 percent to Rs 245.95, its biggest single-day gain in over a month. As many as 2.9 lakh shares changed hands on the BSE Ltd.
• Max India: Shares of the insurance company rose as much as 2.37 percent to Rs 142.50. As many as 10.19 lakh shares changed hands on the BSE compared with two week average of 15,000.

Shares of the information technology company snapped two-day decline and rose as much as much as 18.1 percent, the most in over a month to 50.65. The company signed a pact with Apple India to distribute Apple products in India, according to its exchange filing.

Trading volume was 11.1 times, its 30-day average. The stock has returned a negative of 14 percent so far this year and a gain of 19 percent in the past 12-months.

Shares of the Kolkata-based engineering company jumped as much as 4.96 percent to Rs 72 after it bagged an order worth Rs 514 crore.

The company has received the order for work of engineering, procurement and construction (EPC) of 8 MTPA capacity coal handling plant (CHP) with allied infrastructural facilities.

This includes the operation and maintenance (O&M) of the CHP for initial two years and supervision and hand-holding for one year at Manoharpur coal mine of Odisha Coal and Power (OCPL) in the district of Sundargarh, Odisha.

Shares of the Tata group company fell as much as 6.17 percent to Rs 112.50 after its board of directors approved issuing fresh equity shares to existing shareholders by way of a rights issue.

The board of directors would be issuing shares worth Rs 1,500 crore and the proceeds from the rights issue would be used to meet the company’s long-term financing needs for capital expenditure, growth plans and debt repayment.

Shares of the healthcare services provider pared most of its losses after multiple block deals. The stock was down 1.6 percent to Rs 141, after retreating over 12.5 percent in early morning trades.

Shares of the company jumped as much as 15 percent intraday, to highest since October 2015, after the Indian unit of McDonald’s ended a franchisee pact with Connaught Plaza Restaurants, a venture operating 169 outlets in northern and eastern areas of the country.

Westlife’s unit Hardcastle Restaurants operates McDonald’s outlets in western and southern India. The consolidation of Indian operations by McDonald’s under Westlife “makes the most sense to us,” CLSA analysts Vivek Maheshwari and Bhavesh Pravin Shah say in a note. CLSA maintained its Buy rating on the stock with a price target of Rs 300.

Trading volume was three times its 3-month full-day average. The stock was the second-best performer on S&P BSE 500 Index. It has surged ~59 percent this year.

Shares of the drugmaker rose 1.8 percent, the best performance on the Sensex, after the U.S. FDA closed an outstanding inspection at one of the company’s plants. Trading volume was 1.4 times the 20-day average for this time of day.

The stock is 15 percent below the Bloomberg consensus one-year target price. It returned a negative 37 percent so far this year, compared to a 17.6 percent gain in the Sensex.

Shares of the technology company climbed as much as 18 percent intraday, most since July 18, after the company confirmed it has entered into an agreement to distribute Apple products in India.

The stock was the best performer on S&P BSE 500, BSE SmallCap indexes. Trading volume was 2.8 times its 3-months full-day average.

Indian equity benchmarks pared some of their opening gains as investors continued to sell shares of banks and automakers while energy producers rose the most.

The S&P BSE Sensex gained 0.3 percent to 31,364 while the NSE Nifty 50 Index rose 0.3 percent to 9,789. Both the indices had risen as much as 0.7 percent intraday.

All 19 sector gauges compiled by the BSE Ltd. advanced, led by the S&P BSE Oil & Gas Index’s 1.35 percent jump.

There is little to talk about markets in this holiday-shortened week in the absence of any major data releases. In the West, investors are reassessing positions ahead of a meeting of central bankers at Jackson Hole.

Bridgewater Associates, one of the largest hedge funds in the world said it is tactically reducing risk as it is concerned about growing internal and external conflicts.

Meanwhile, the Bloomberg Dollar Index was up 0.1 percent today even as Asian currencies like the South Korean won rose 0.2 percent. The rupee was stuck in a range in the last session and ended steady. The outlook for today is no different and it may trade between 64-64.20 a dollar in the day.

Sovereign bonds too saw little action in the last session. We have the state loan auction today and also the weekly debt auction on Thursday including the benchmark. A bank strike is on today which may impact volumes as attendance at banks treasuries could be thin. Yield may stay in a tight range of 6.45 percent-6.53 percent.

Mindtree (Post Investor Meet)

• Axis Capital: Mindtree’s 3.0 strategy aims to drive change to maintain digital leadership. Its aim is to recoup the margin loss from FY16 levels. Stock is fairly valued.
• Citi: Mindtree seems to be investing in the right areas from a medium to longer perspective. Valuations still do not provide much comfort in this context.
• Credit Suisse: Management articulated a clear digital strategy. There were no new takeaways related to near-term financial performance. Valuations are still relatively rich.
• IDFC: Company ruled out any short-term measures to push margin higher that could hurt the business/growth outlook. Management eyes reversal in margin erosion.
• Motilal Oswal: Upgrade to Neutral as near-term softness now embedded in the price. Management presented a differentiated proposition in digital.
• Morgan Stanley: Management highlighted that it is preparing organisation for the next big leap in digital. However, near-term macro and company-specific challenges still persist.

IIFL On Redington

• Initiate coverage with target of Rs 160. See 11 percent/13 percent revenue/EPS CAGR over FY17-20. GST-related headwinds cap near-term upside. Stock price lacks near-term catalysts. “We wait for a better entry point to turn more constructive on the stock.”

HSBC On UltraTech Cement

• Raise target to Rs 3,350 from Rs 2,350. Jaypee ramp-up looks challenging. Believe Jaypee assets will operate at a capacity utilisation below 60 percent until FY20 due to challenging market. The Street is extremely optimistic on long-term profitability.

CLSA On Westlife

• Termination of franchisee agreement in north and east India with Connaught Plaza positive for Westlife. Consolidation under WDL makes the most sense to us. Domino’s and PepsiCo show merits of franchisee consolidation.

• Nifty Futures adds 5.3 lakh shares in open interest, premium moves to 14.6 points versus 17 points
• Bank Nifty Futures add 1.6 lakh shares in open interest, up 8 percent
• Maximum Call open interest at 10,000 at 58.9 lakh shares
• Maximum Put open interest at 9,800 at 53.2 lakh shares, open interest down 10 percent
• Call strikes 9,700, 9,800, 9,900 see open interest addition
• Put strikes 9,800, 9,900 and 10,000 see open interest shedding

• Lupin gets Establishment Inspection Report (EIR) from U.S. FDA for Aurangabad unit, which contributes less than 2 percent to sales.
• Reliance Capital shareholders to get one home finance share for every share held
• Biocon to transfer biosimilars business to Biologics subsidiary
• HCL Infosystems, Apple in pact to distribute iPhones, other products in India
• Subex board approves the restructuring of business
• Mcnally Bharat wins EPC order of coal plant worth Rs 514 crore
• Coffee Day acquires ONS Ventures in Malaysia
• Central Bank of India cuts savings bank deposit rates by 50 basis points
• Piramal-Bain stressed assets unit, AION Capital eye Alok Industries stake (Mint)
• ICICI Bank in talks to sell Unimark Loans to Edelweiss (Mint)

For a complete list of stocks to watch, click HERE

• Chandrasekaran backs Indian Hotel’s foreign asset deals
• Essar Oil sale will reduce Essar Group’s debt by Rs 70,000 crore
• Government gets Rs 42,000 crore tax so far in first filing under GST
• BSE to ‘compulsorily’ delist 200 firms and bar promoters on August 23

• McDonald's snaps agreement with India franchisee after feud
• Bank Unions on strike today to protest PSU bank consolidation plans
• States’ efforts to renegotiate tariffs may hurt renewable power sector
• SEBI turns up pressure with name and shame defaulter strategy

Watch: NASA Broadcasts Total Solar Eclipse as Witnessed in U.S.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.33 percent to 9,805.5.

Asian stocks gained in thin trading as investors reassessed positions ahead of a meeting of central bankers and President Donald Trump speech outlining a new strategy for the U.S.’s engagement in Afghanistan.

Trading was thin after volumes on the S&P 500 were about 15 percent below the 30-day average on a day highlighted by the first total solar eclipse to sweep the U.S. from coast to coast in 99 years.

In currencies, Yen snapped three days of gains. The Bloomberg Dollar Spot index halted a two-day slide and rose nearly 0.04 percent to $1,155.46.

The West Texas Intermediate gained 0.2 percent to $47.50 after tumbling 2.4 percent on Monday after U.S. crude stockpiles extended decline, trimming the global glut and an inventory overhang.

Gold was down 0.2 percent to $1,289.01 an ounce following a 0.6 percent gain.