Sensex, Nifty Post Worst Start To Second Half Since 2010

Indian equity benchmarks resumed decline in worst start to second half since 2010 on the back of weak global cues and falling rupee.

The S&P BSE Sensex fell 0.45 percent or 159 points to 35,264 and the NSE Nifty 50 index declined 0.53 percent or 57 points to 10,657.

Sixteen out of 19 sector gauges compiled by BSE ended lower led by the S&P BSE Telecom index's 2.6 percent drop. On the other hand, the S&P BSE Information Technology index was the top gainer, up 0.88 percent.

The mid- and small-cap shares underperformed their larger peers as the respective indexes fell over 0.7 percent each.

• RITES: The Gurugram-based railway engineering service provider rose as much as 17.8 percent on its stock market debut. RITES' Rs 460 crore IPO was subscribed 67 times.
• Cheviot: The Kolkata-based jute goods maker rose as much as 13 percent, the most in over six months, to Rs 1,387 after it announced that its board will meet on July 10 to consider issue of bonus shares.
• IDBI Bank: The Mumbai-based government-owned lender gained as much as 5.65 percent after IRDAI approved LIC’s investment plan. LIC will increase its stake in IDBI Bank up to 51 percent.
• Motilal Oswal Financial Services: The Mumbai-based stock brokerage firm rose 6.3 percent to Rs 825. Trading volume was 4.5 times its 20-day average.

Shares of the Chennai-based two-wheeler maker rose 1.75 percent to Rs 562 after it reported sales numbers for the month of June.

Key highlights:

• Two-wheeler sales up 12.1 percent at 3,01,201 units versus 2,68,638 units (YoY)
• Exports up 48.6 percent to 65,971 units versus 44,389 units (YoY)
• Three-wheeler sales up 140.9 percent at 12,413 units versus 5,153 units (YoY)

• GE T&D: The Noida-based power transmission and distribution equipment maker fell 3 percent to Rs 281.10. Trading volume was 7.7 times its 20-day average.
• Honeywell Automation: The Pune-based industrial automation products maker rose 0.8 percent to Rs 18,350. Trading volume was 8.5 times its 20-day average.
• Container Corp: The government-owned logistics service provider fell 3 percent to Rs 633. Trading volume was 3.4 times its 20-day average.
• Motilal Oswal Financial Services: The Mumbai-based stock brokerage firm rose 6.3 percent to Rs 825. Trading volume was 4.5 times its 20-day average.

European stocks and U.S. equity futures tracked a slide in Asian shares at the start of a crunch week for global trade. Political risks dragged the euro and pound down, and dollar strength roiled emerging assets.

Vedanta Resources gained as much 28 percent after majority holder Anil Agarwal made a potential offer via his holding co. Volcan to take the company private.

Source: Bloomberg

• Indian equity benchmarks extended decline led by HDFC twins, Reliance Industries and ITC.
• The S&P BSE Sensex fell 0.8 percent or 275 points to 35,148 and the NSE Nifty 50 index fell 0.9 percent or 93 points to 10,620.
• All sector gauges barring the Nifty IT index were trading lower led by the Nifty PSU Bank index's 1.9 percent drop.
• Mid- and small-cap shares were underperforming their larger peers as the Nifty Midcap 100 index fell 1.2 percent and the Nifty Smallcap 100 index slumped 1.4 percent.
• The overall breadth was negative as 1,581 shares were declining while 757 were advancing on the BSE.

Also Read: Millennials Loosen Gold’s Grip As Premier Store Of Indian Wealth

Shares of the Anil Agarwal promoted Vedanta Resources agreed to a recommended all cash offer to be made by Volcan at 825 pence/share for the remaining issued and to be issued share capital of Vedanta not currently owned by Volcan.

• In addition to offer price, shareholders will also be entitled to receive the previously announced dividend of $0.41/Vedanta share for 12-months ended March 31
• With dividend offer price is 856 pence/share
• Volcan is a holding company beneficially wholly owned by the Anil Agarwal discretionary trust

Source: Bloomberg

Shares of the Mumbai-based private sector lender rose as much as 5.65 percent to Rs 58 after Insurance Regulatory Development Authority of India (IRDAI) approved Life Insurance Corporation's investment plan.

Life Insurance Corporation of India will increase its stake in IDBI Bank up to 51 percent—at a time when a third of its loans are stressed.

LIC will invest between Rs 10,000 crore and Rs13,000 crore in the troubled state-owned lender in several tranches as part of the capital infusion plan.

Nifty Bank 26,000 strike price put option was among the most active option contracts on the National Stock Exchange.

Premium on the contract surged 75 percent to Rs 86.70. Over 1.8 lakh shares were added to the open interest which stood at 7.95 lakh shares.

Click here to see the complete options chain

Activity in India’s manufacturing sector gathered momentum, improving at the fastest pace in the year so far, supported by the strength in output and new orders.

The Nikkei India Purchasing Managers Index improved to 53.1 in June from 51.2 in the previous month, according to a statement by IHS Markit, which compiles the index. A reading below 50 indicates contraction in activity, while a number above it signals expansion. Manufacturing activity in the country has remained above the 50-point-mark for the eleventh consecutive month.

Shares of the Delhi-based news broadcast company were locked in an upper circuit for a fourth trading session in a row,

NDTV rose by its daily maximum limit of 10 percent to Rs 56.30.

The stock has been witnessing buying interest after SEBI ordered Vishvapradhan Commercial to make an open offer for NDTV for indirectly acquiring up to 52 per cent via a convertible loan of Rs 350 crore in 2009 ‘sourced’ from a subsidiary of Reliance Industries.

Shares of the Chennai-based commercial vehicle maker rose 2.5 percent to Rs 129 after it reported June sales numbers.

Ashok Leyland sold 15,791 vehicles in June compared with 12,333 units sold during same period last year.

Key highlights:

• Medium & heavy commercial vehicle sales rose 22 percent to 11,257 units.
• Light commercial vehicle sales rose 45 percent to 4,534 units.

• Reliance Communications has 10 lakh shares change hands in a block. Stock down 1.4 percent at Rs 13.45.

Buyers and sellers were not immediately known

Source: Bloomberg

Fine Organic Industries made a positive stock market debut after it raised Rs 600 crore via selling its shares through initial public offering (IPO).

Fine Organic Industries opened at Rs 815, up 4 percent over its issue price of Rs 783 and extended gains to rise as much as 5.2 percent.

The IPO was subscribed 9 times on final day of bidding.

Shares of Rail India Technical and Economic Services (RITES), the country's first railway PSU, made a positive stock market debut after it raised Rs 460 crore via selling its shares through initial public offering (IPO).

RITES' opened at Rs 190, up 2.7 percent over its issue price of Rs 185 and extended gains to rise as much as 6.5 percent.

The IPO saw huge demand for its shares as it was subscribed 67 times on the final day of listing.

Sunil Subramaniam, managing director & chief executive officer at Sundaram Mutual Fund told BloombergQuint in an interview that upcoming state elections are riskier than rewarding for the government.

Key highlights of the conversation:

• Oil spike because of Venezuela and Iran
• Portfolio consists of 60-65 percent defensive and 30-35 percent aggressive stocks
• Have added cyclical sectors like capital goods, cement and steel with bullish view
• Still underweight on pharma stocks
• Bullish on ferrous metals space

Shares of the Pune-based two wheeler maker rose as much as 3.12 percent to Rs 2,898 after its sales rose for the eleventh straight month in June, registering its best monthly sales growth in over eight years.

Bajaj Auto sold 4.04 lakh units last month, an increase of 65 percent from the year-ago period, the company said in an exchange filing.

Key highlights:

• Motorcycles sales rose 65 percent year-on-year to 3.37 lakh units.
• Commercial vehicles rose 66 percent year-on-year to 66,677 units, registering its highest ever monthly sales.
• Exports rose 44 percent year-on-year to 1.69 lakh units.

Shares of the Mumbai-based automobile maker rose as much as 2.86 percent to Rs 277 after it reported June sales numbers.

Tata Motors' overall sales jumped 50 percent in june, with domestic sales increasing by more than half to 56,773 units. Exports also rose 50 percent to 5,246 units year-on-year, according to an exchange filing.

Key Highlights

• Commercial Vehicles sales grew 50 percent to 38,560 units.
• Sales under the medium and heavy vehicle segment grew 50 percent to 11,524 units.
• Sales under the light commercial vehicles segment rose 69 percent to 4,485 units.
• The SCV Cargo and Pickup segment sales grew 53 percent to 16,857 units.
• The commercial passenger carrier segment grew 33 percent with sales at 5,732 units.
• Domestic sales of passenger vehicles grew 63 percent to 18,213 units.

Shares of the country's second largest steel maker rose as much as 3.30 percent to Rs 586.50 after it approved a joint venture with Germany's Thysenkrupp AG to make Europe's second largest steel company after ArcelorMittal.

The board of Tata Steel approved to create a 50:50 joint venture and has adopted resolutions for the signing the definitive agreement, the company said in its exchange filing. Thyssenkrupp workers’ union had given their consent to the deal, on Friday.

Indian equity benchmarks edged lower as bluechips like ITC, HDFC Bank, Reliance Industries and TCS fell.

The S&P BSE Sensex fell 0.24 percent or 86 points to 35,336 and the NSE Nifty 50 index declined 0.22 percent or 25 points to 10,689.

Six out of 11 sector gauges compiled by National Stock Exchange were trading lower led by the Nifty FMCG index's 0.5 percent drop. On the other hand, the Nifty IT index was top gainer, up 0.5 percent.

The mid- and small-cap shares were trading flat as the S&P BSE MidCap and S&P BSE SmallCap indexes rose 0.1 percent each.

• Rupee edged higher to 68.38 per dollar against Friday's close of 68.47.

Who’s Meeting Whom

• Mahindra Lifespace Developers to meet ICICI Prudential Life Insurance on July 4.

Insider Trades

• Century Plyboards promoters acquired 14,495 shares on June 28.
• KEC International promoter acquired 45,434 shares from June 27 – 28.
• Man Infraconstruction promoter Vatsal Shah acquired 40,101 on June 28.
• Laurus Labs promoter Dr Satyanarayana Chava acquired 3 lakh shares from June 26 – 27.

(As reported on June 29)

Bulk Deals

• Talwalkars Lifestyles: Gurukrupa Capital Investments bought 2 lakh shares at Rs 149.87 each.

Adani Ports

• Camas Investments PTE bought 2.70 crore shares or 1.3 percent equity at Rs 369.65 each.
• SB Adani Family Trust sold 2.70 crore shares or 1.3 percent equity at Rs 369.65 each.

Minda Corp

• Wasatch International Opportunities Fund bought 21 lakh shares or 0.9 percent equity at Rs 173.43 each.
• KR Handloom Pvt Ltd sold 30.3 lakh shares or 1.3 percent equity at Rs 173.45 each.

Trading Tweaks

• Adani Green Energy Ltd circuit filter revised to 20 percent and shifted to B group.
• Tree House Education & Accessories Ltd circuit filter revised to 5 percent.
• Dish TV open offer for 26 percent stake at Rs 76 per share open from July 2 – 13.
• Electrosteel Steels last trading day under T group.

F&O Cues

• Nifty July Futures ended at 10,694.8, discount of 19 points versus 18 points.
• July series-Nifty open interest (OI) up 5 percent and Bank Nifty OI was unchanged.
• India VIX ended at 12.9, down 7.2 percent.
• Max OI for July series call at 11,000 strike price call option, OI at 33.2 lakh shares, up 11 percent.
• Max OI for July series put shifts to 10,600 strike price put option, OI at 45.6 lakh shares, up 30 percent.

• IRDAI approved LIC’s investment plan in IDBI Bank.
• Fortis said that SEBI has ordered a forensic audit in matter of that company
• TCS said promoters to participate in buyback.
• Bosch plans to sell $1.5 billion packaging machines division.
• Thermax won Rs 340 crore order from an Indian steel major.
• Bharat Financial Inclusion completes second securitization transaction in 2018-19.
• Bharti Airtel Shareholders, Unsecured Creditors To Meet July 30; to consider Telesonic networks deal.
• Punjab Chemicals & Crop protection cleared its entire outstanding debt with Allahabad Bank.
• Dilip Buildcon received sanction letter from NBFC and nationalized banks for their 3 HAM projects worth Rs 3772 crore.
• Radha Madhav Corporation approved allotment of 1.91 crore convertible warrants to Promoter and Non-Promoter entities.
• Tata Steel and Thyssenkrupp sign 50:50 JV agreement
• Reliance Industries acquires NASDAQ listed Radisys Corporation for $75 million.
• Zydus Cadila received U.S. FDA approval to market Triamterene and Hydrochlorothiazide tablets.
• Endurance Tech to discontinue manufacturing at Manesar plant with effect from Aug. 31.
• Coal India June production at 44.88 million tonnes and sales at 49.59 million tonnes.
• ONGC board approved restructuring of group companies.
• Aviation turbine fuel prices cut by 2.7 percent to Rs 69,33 per kilo-litre. This is the first price cut in last 12 months.

• Fine Organic Industries to be listed on exchanges today. Issue price of Rs 783 per share.
• RITES to be listed on exchanges today. Issue price of Rs 185 per share.

• Tata Motors’ June sales rose 54 percent year-on-year to 56,773 units and exports rose 50 percent year-on-year to 5,246 units.
• Maruti Suzuki’s June sales rose 36.3 percent year-on-year to 1.44 lakh units.
• M&M’s June sales rose 20 percent year-on-year to 45,155 units.
• Eicher Motors’ Royal Enfield sales rose 18 percent year-on-year to 74,477 units.

• Russia beats Spain in penalty shoot outs
• Croatia beats Denmark in penalty shoot outs

Today’s Match Schedule

• Brazil versus Mexico at 7:30 PM IST
• Belgium versus Japan at 11:30 PM IST

• Trump’s trade war arrives in the data as China awaits tariffs
• Supreme Court re-opens today after summer break, hectic week ahead
• Auto sales jump in June on low base effect
• Thyssenkrupp activist investors unhappy with Tata Steel deal
• Trump spouse-visa shift may hurt workers, push 100,000 from jobs
• Millennials loosen gold’s grip as premier store of Indian wealth
• The fractured legacy of IDBI Bank
• Bitcoin creator, whoever it is, hints at telling all in book
• Airbus may miss A320neo delivery goal on engine woes
• One year of GST: Looking back to move forward

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India was little changed at 10,691 as of 8:28 a.m.

Stocks in Asia kicked off the second half of 2018 in a mixed fashion, while oil declined, and the euro came under pressure over German political concerns.

Japanese and South Korean shares edged lower and Australian ones rose. Chinese stocks slipped, while the yuan was little changed at the open, as investors monitor for signs of intervention in the wake of the currency’s sharpest drop since its 2015 devaluation. Hong Kong is closed for a holiday.

Currencies

• The euro slipped 0.2 percent to $1.1659.
• The pound fell 0.2 percent to $1.3186.
• The yen climbed 0.2 percent to 110.98 per dollar.
• The Bloomberg Dollar Spot Index rose 0.1 percent.

Commodities

• West Texas Intermediate crude slipped 0.8 percent to $73.54 a barrel.
• Gold futures fell less than 0.1 percent to $1,252.30 an ounce.

These are key events coming up this week:

• U.S. manufacturing probably continued to expand at a robust pace in June, economists forecast ahead of Monday’s release.
• The Reserve Bank of Australia has a policy decision Tuesday.
• The U.S. celebrates Independence Day on July 4, Wednesday. Stock and bond markets are closed, along with government offices.
• Federal Reserve releases minutes of its June 12-13 meeting, when FOMC policy makers raised the benchmark rate a quarter point for the second time this year, and lifted their median forecast to four total increases in 2018.
• U.S. payrolls are due Friday.
• Also on Friday, the U.S. is scheduled to impose tariffs on $34 billion of Chinese goods. Beijing has said it will slap tariffs on an equal value on U.S. exports including agricultural and auto exports.