Sensex, Nifty Rebound After Posting Worst Start To Second Half Since 2010

Indian equity benchmarks rebounded a day after posting the worst start to second half of the year since 2010 in the previous session.

The S&P BSE Sensex rose 0.3 percent or 114 points to 35,378.60 and the NSE Nifty 50 index climbed 0.4 percent or 43 points to 10,700.

The gains in today's session were led by heavyweights like Reliance Industries, Infosys, Kotak Mahindra Bank and ITC.

Thirteen out of 19 sector gauges compiled by BSE ended higher led by the S&P BSE Healthcare index’s 1.8 percent gain. On the flipside, the S&P BSE Metal index was top loser, down 0.3 percent.

The mid- and small-cap shares were in line with their larger peers as the S&P BSE MidCap index rose 0.7 percent and S&P BSE SmallCap index advanced 0.4 percent.

Shares of the country's second largest hospital chain operator rose 6 percent to Rs 141.75 after IHH offered a binding bid for Fortis which will be valid till July 16, 5 PM IST, Bloomberg reported.

• United Breweries: The Bengaluru-based beer maker rose as much as 5.3 percent to Rs 1,174.90 after Emkay upgraded the stock to ‘buy’ from ‘accumulate’ and raised its target price to Rs 1,400 from Rs 1,350.
• Hero MotoCorp: The Delhi-based motorcycle maker rose as much as 2 percent to Rs 3,485 after its June sales rose 13 percent at 704,562 units versus 624,185 units against BloombergQuint estimate of 7 lakh units.
• Aban Offshore: The Chennai-based oil field service provider rose as much as 10 percent after it won an order from ONGC for rig development.
• Allcargo Logistics: The Mumbai-based logistics services provider rose as much as 7.3 percent to Rs 115.05 after after 24.7 lakh shares change hands in two block deals.

Stock markets showed signs of stabilizing on Tuesday, with European shares and U.S. futures rising following a mixed Asian session in which all eyes were on the yuan. The euro strengthened as Germany’s coalition government dodged a crisis over migration.

Shares of the Chennai-based oil field service provider rose as much as 10 percent after it won an order from ONGC for rig development.

Aban Offshore's subsidiary Aban Singapore received a letter of award from ONGC for deployment of jack-up rig Deep Driller 8 for a period of two years, the company said in an exchange filing.

Tata Group is evaluating a proposal to integrate its food and beverage businesses into a single company, Bloomberg reported quoting people familiar with the matter.

The country's biggest conglomerate group is considering separating the salt and branded lentils businesses of Tata Chemicals Ltd. and folding them into Tata Global Beverages Ltd., sources requesting to be unidentified told Bloomberg.

Shares of the Mumbai-based stock brokerage firm fell as much as 3.3 percent to a new low of Rs 315.60.

Regulator SEBI is said to have found ICICI Prudential MF in violation of rules during the last day bidding for IPO of the group firm ICICI Securities, news agency Press Trust of India reported citing sources.

SEBI has asked the fund house to pay back Rs 240 crore, with a 15 percent interest, to its five schemes from which the money was taken for the shares, the report added.

Nifty Bank index fell 0.2 percent to 26,180 led by weakness in government-owned lenders like Punjab National Bank, Bank of Baroda and State Bank of India.

The gauge of government-owned banks on National Stock Exchange - Nifty PSU Bank index fell 1 percent.

• Allcargo Logistics has 24.7 lakh shares change hands in two blocks. Stock surges 6.8 percent to Rs 114.40.

Buyers and sellers were not immediately known

Source: Bloomberg

Niti Aayog vice chairman Rajiv Kumar while addressing media persons said rupee is still relatively overvalued by 5-7 percent compared to its real effective value.

Key highlights:

• Completely wrong to compare the rupee situation to 2013.
• Rupee relatively overvalued by 5-7 percent compared to its real effective value.
• LIC will make very good money by investing in IDBI Bank.
• IDBI's market cap will improve over the years.

• Indian rupee extended gain against the U.S. dollar. Rupee rose as much as 0.28 percent to 68.60 per dollar against yesterday's close of 68.80.

Shares of the Ahmedabad-based synthetic dye maker was locked in a 20 percent upper circuit at Rs 576.95 on the back of heavy volumes.

Trading volume 10.3 times its 20-day average.

The company has got a favourable ruling from Singapore International Commercial Court in Kiri Industries' minority oppression suit in relation to its investment in DyStar.

The court ordered Senda International Capital Limited to buy Kiri Industries' 37.57 percent stake in DyStar.

• Time Technoplast: The polymer products maker rose 10.5 percent to Rs 130.25. Trading volume was 6.7 times its 20-day average.
• CRISIL: The Mumbai-based credit rating agency fell 0.13 percent to Rs 1,800. Trading volume was 8.5 times its 20-day average.
• Sudarshan Chemical Industries: The Pune-based chemical maker rose 3.6 percent to Rs 446.95. Trading volume was 5.2 times its 20-day average.
• Srei Infra: The Kolkata-based non-banking finance company rose 4.3 percent to Rs 60.60. Trading volume was 5.3 times its 20-day average.

• Indian equity benchmarks extended gains led by Reliance Industries, Infosys, TCS and HDFC Bank.
• The S&P BSE Sensex rose 0.4 percent or 135 points to 35,400 and the NSE Nifty 50 index climbed 0.4 percent or 42 points to 10,700.
• Fourteen out of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Energy index's 1.2 percent gain. On the flipside, the S&P BSE Power index was top loser, down 0.4 percent.
• The mid- and small-cap shares were trading with minor gains as the S&P BSE SmallCap index rose 0.1 percent and the S&P BSE MidCap index advanced 0.2 percent.

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Shares of the Chennai-based software developer fell as much as 20 percent for a second straight day.

The company has been deferring its March quarter earnings. On May 30 it had informed exchanges that it would be declaring its earnings on June 22.

However, after failing to announce its earnings then, it again informed exchanges yesterday that it will be declaring earnings on July 17 at 4:00 PM.

Shares of the Delhi-based news broadcast company snapped its four-day winning streak and fell as much as 10 percent to Rs 50.70.

The stock in the last four sessions had rallied 74 percent to Rs 56.30.

Shares of the drugmaker rose as much as 2.2 percent today to Rs 396.85 after the company received an approval from the U.S. drug regulator for its painkiller drug.

Strides Shasun received approval from the U.S. Food and Drug Administration for its Ibuprofen tablets, used to relieve headache, dental pain, muscle aches, or arthritis, according to its exchange filing.

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

The premium on the contract fell 5.4 percent to Rs 57.30. Over 2.47 lakh shares were added to the open interest which stood at over 10.22 lakh shares.

Click here to see the complete options chain

Shares of the Chandigarh-based steel wheel rim maker rose as much as 2.32 percent to Rs 1,240 after its sales turnover in June rose 74 percent to Rs 197.60 crore versus Rs 112.45 crore during the same month last year.

The company sold 12.66 lakh wheel rims compared to 10.29 lakh wheels (YoY).

Shares of the Hyderabad-based construction company rose as much as 4.54 percent to Rs 101.35 after it won orders worth Rs 2,061 crore in June.

Three orders worth Rs 1,997.51 crore pertain to the buildings division and one order of Rs 63.45 crore pertain to the water and environment division, NCC said in an exchange filing post market hour yesterday.

Shares of the Delhi-based dairy products maker fell as much as 4.85 percent to Rs 21.60 after one of its promoter Sanjay Dhingra sold shares in the company.

Kwality's promoter Sanjay Dhingra sold 13 lakh shares or 0.54 percent equity at Rs 22.07 per share, according to the data available on stock exchanges.

Shares of the newly listed specialty chemicals company rose as much as 3.91 percent to Rs 855 after Goldman Sachs India Fund bought stake in the company.

Goldman Sachs India Fund acquired 2.79 lakh shares or 0.91 percent equity at Rs 815 each, according to data available on stock exchanges.

Shares of the Delhi-based oil exploration company rose as much as 2.25 percent to Rs 159 after its board gave in-principle approval for exploring options for a restructuring of the group firms including the merger of subsidiaries MRPL and HPCL.

Shares of the Delhi-based two-wheeler maker rose as much as 2 percent to Rs 3,485 after it reported June sales and hiked prices of its motorcycles and scooters to partially offset higher input costs.

June sales highlights:

• June sales rose 13 percent to 7,04,562 units versus 6,24,185 units (YoY)
• From April to June, Hero MotoCorp sold over 21 lakh units.

Indian equity benchmarks edged lower led by weakness in heavyweights like ICICI Bank, HDFC, Vedanta and Kotak Mahindra Bank.

The S&P BSE Sensex fell 0.1 percent or 34 points to 35,226 and the NSE Nifty 50 index declined 0.2 percent or 21 points to 10,634.

Seventeen out of 19 sector gauges compiled by BSE were trading lower led by the S&P BSE Utilities index's 1 percent drop. On the other hand, the S&P BSE Energy index was top gainer, up 0.3 percent.

The mid- and small-cap shares were underperforming their larger peers as the S&P BSE MidCap and the S&P BSE SmallCap Indexes declined 0.4 percent each.

Rupee opened lower at 68.91 per dollar against yesterday's close of 68.80.

The rupee could potentially test 70 per dollar soon. The key negatives are an escalating trade war fears between the U.S. and China and high oil prices, according to Oxford Economics. Also, India's key industries' output for the month of May rises less than estimated at 3.6 percent.

On the monsoon front too, the news is not too good. Though the rains have covered all of India, precipitation is still 7 percent below normal.

Rajnish Kumar, chairman of State Bank of India told BloombergQuint in an interview that there is huge interest in stressed asset reconstruction from institutions and asset management company will not require huge amount of capital.

Key highlights of the conversation:

• Average Rs 1.2 lakh crore of funds required to deal with stressed assets worth Rs 3.10 lakh crore of stressed assets.
• ARCs required to pay banks within 60 days.
• Funding amount needed would be the average percentage estimated recovery.
• Expect 60-70 percent funding for AMC to come from domestic institutions and banks; 30-35 percent to come from foreign investors.
• Attempt is for banks to come together and make a coordinated decision.
• Bankers saw need for a professionally run asset management company.
• Looking at wider participation from private sector.
• Assets will be sold at market determined price.
• Banks to bear loss on sale of assets upfront.

Sovereign bond traders will be focusing on the sale of about Rs 11,000 crore of debt by states. Nothing much has changed for the rupee and the ongoing emerging market selloff means the currency may be bearish today. The market is likely to follow the oil and the rupee trajectory.

The rupee could potentially test 70 per dollar soon. The key negatives are an escalating trade war fears between the U.S. and China and high oil prices, according to Oxford Economics. Also, India's key industries' output for the month of May rises less than estimated at 3.6 percent.

On the monsoon front too, the news is not too good. Though the rains have covered all of India, precipitation is still 7 percent below normal.

Who's Meeting Whom

• Shalby to meet Goldman Sachs Asset Management and other investors from July 3-4.
• Magma Fincorp to meet Vallum Capital and other investors on July 3.
• Philps Carbon Black to meet investors from July 3-6.
• Cipla to meet Reliance Mutual Fund on July 3.

Insider Trades

• Jain Irrigation Systems promoter acquired 4 lakh shares from June 28-29.
• Ruchi Soya Industries promoters sold 2 lakh shares on June 29.
• Shakti Pumps promoter group acquired 10,000 shares on June 29.

(As reported on July 2)

• Rupee closed at 68.80/$, lowest level since August 2013.
• Domestic unit remains the worst performer among Asian peers, down 7.2 percent, so far this year.

Bulk Deals

Fine Organic

• Goldman Sachs India Fund Ltd acquired 2.79 lakh shares or 0.91 percent equity at Rs 815 each.

Kwality

• Promoter Sanjay Dhingra sold 13 lakh shares or 0.54 percent equity at Rs 22.07 each.

Adani Ports

• Promoter SB Adani Family trust sold 2.7 crore shares or 1.31 percent equity at Rs 369.65 each.
• Camas Investments Pvt Ltd acquired 2.7 crore shares or 1.31 percent equity at Rs 369.65 each.

Minda Corporation

• Wasatch Advisors Inc A/C Wasatch International Opportunity Fund acquired 21 lakh shares or 0.93 percent equity at Rs 173.43 each.
• KR Handloom Pvt Ltd sold 30 lakh shares or 1.33 percent equity at Rs 173.45 each.

Trading Tweaks

• Electrosteel Steels shifted to B group.
• Safari Industries, Sandur Manganese and Waterbase last trading day under X group.

F&O Cues

• Nifty July Futures ended at 10,658.2, with a premium of 0.9 points versus discount of 19 points.
• July series Nifty open interest (OI) unchanged and Bank Nifty OI up 5 percent.
• India VIX ended at 13.3, up 3 percent.
• Max OI for July series call at 11,000 strike price call option, OI at 36.8 lakh shares, up 11 percent.
• Max OI for July series put shifts to 10,600 strike price put option, OI at 47.5 lakh shares, up 4 percent.

• Fortis Healthcare: Last day for bidders to put in their bid for the hospital business.
• Hero Motocorp June sales up 13 percent at 7,04,562 units versus 6,24,185 units.
• ONGC board gives nod to explore group restructuring options. (PTI)
• ITC and Ballarpur Industries clarify that no negotiations have taken place for ITC acquiring BILTs Telengana unit.
• Parag Milk Foods board approves acquiring of patented product rights from Sweden-based organization.
• Strides Shasun gets U.S. FDA approval for Ibuprofusen OTC tablets.
• Mahindra Lifespace Developers MD Anita Arjundas resigns.
• Tata Power arm commissions 100-megawatt solar capacity in Andhra Pradesh.
• Syndicate Bank clarifies credit facility given to DS Kulkarni was in compliance with RBI guidelines.
• NCC receives four new orders totaling to Rs 2,061 crore in June.
• Rico Auto Industries shuts down loss making unit in Haryana.

• Government unveils five-point plan ‘Sashakt’ to tackle bad loans
• Retail traders protest Walmart-Flipkart deal across the country
• ICICI Securities IPO: SEBI asks ICICI Prudential mutual fund to return investors’ money to schemes
• Chasing all defaulters may chill economic activity, says Nitin Gadkari
• GST is not all that bad, say small businesses
• India has a ‘Plan D’ for Iran oil
• Thyssenkrupp to decide when its JV with Tata Steel goes public
• Jim Beam faces U.S. SEC hangover after bribery allegations in India
• Amazon closes on Apple in the race for $1 trillion
• Roger Federer leaves Nike for Uniqlo in blockbuster deal

FIFA World Cup Update: Brazil Beats Mexico

• Brazil beats Mexico 2-0
• Belgium beats Japan 3-2

Today’s Match Schedule

• Sweden versus Switzerland at 7:30 PM IST
• Colombia versus England at 11:30 PM IST

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India was little changed at 10,657 as of 7:38 a.m.

Stocks in Japan, South Korea and Australia recouped some of yesterday’s declines as investors continue to weigh the impact of potential global trade restrictions on economic growth. The dollar held on to gains, while Chinese assets remain in focus following another battering for stocks.

Share indexes in Tokyo, Sydney and Seoul climbed. Hong Kong returns after Monday’s holiday when pronounced moves lower were seen across Asian equity markets.

Currencies

• The Bloomberg Dollar Spot Index held steady after Monday’s 0.5 percent gain.
• The euro held at $1.1638.
• The pound bought $1.3140.
• The Aussie traded at 73.39 U.S. cents.

Commodities

• The Bloomberg Commodity Index declined 1.9 percent on Monday, the largest fall since November 2016.
• West Texas Intermediate crude added 0.3 percent to $74.13 a barrel.
• Gold was little changed at $1,241.66 an ounce.

These are key events coming up this week:

• The Reserve Bank of Australia has its policy decision Tuesday.
• The U.S. celebrates Independence Day on Wednesday, July 4. 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 the 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.