Sensex, Nifty Lose Momentum Amid Rising Trade War Fears

Indian equity benchmarks' three-day upmove slowed down amid escalating trade tension between U.S. and China.

The S&P BSE Sensex rose 0.07 percent or 26 points to 36,266 and the NSE Nifty 50 index was little changed 10,948.

U.S. moved forward with proposed import tariffs on an additional $200 billion in Chinese goods by releasing a list of targeted products.

Back home, for most part of the day, the Sensex and Nifty moved in a narrow range as gains in TCS and Reliance Industries were offset by losses in ICICI Bank, Maruti Suzuki and HDFC.

Fourteen out of 19 sector gauges compiled by BSE ended lower led by the S&P BSE Metal index's 3 percent drop. On the flipside, the S&P BSE IT index was top gainer, up 2.4 percent.

The mid- and small-cap shares underperformed their larger peers as the S&P BSE MidCap index fell 0.7 percent and the S&P BSE SmallCap index declined 0.3 percent.

• IDBI Bank: The Mumbai-based public-sector lender rose as much as 10 percent to Rs 58.65 as Life Insurance Corp of India’s investment in IDBI Bank may trigger an open offer for the state-run bank, Bloomberg reported.
• Shilpa Medicare: The Raichur-based active pharmaceutical ingredient maker rose as much as 14 percent to Rs 434 after U.S. FDA closed inspection of its plants.
• Shalimar Paints: The Kolkata-based paint maker rose as much as 10.76 percent to Rs 142 after its board approved raising Rs 240 crore via rights issue.
• L&T Infotech: The Mumbai-based IT company rose as much as 6.87 percent to record high of Rs 1,838 on heavy volumes. Trading volume was 10.2 times its 20-day average.

Wealth of Tata Consultancy Services' investors swelled by Rs 46,200 crore as India's most valued company's market capitalisation topped Rs 7.5 lakh crore, Bloomberg data showed.

TCS shares surged as much as 6.5 percent to Rs 1,998 which took its market value to Rs 7.6 lakh crore.

• Indiabulls Ventures has 73 lakh shares change hands in a block. Stock little changed at Rs 480.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the country's largest IT company extended gains and rose as much as 6.27 percent, the most in over a month, to record high of Rs 1,993 after it reported strong June quarter earnings.

Tata Consultancy Services’ net profit rose 6.3 percent sequentially to Rs 7,340 crore for the quarter ended June, TCS said in its filing with the stock exchanges. The bottom line surpassed the Rs 6,957 crore consensus estimate of analysts tracked by Bloomberg.

TCS has surged as much as 50 percent so far this year outperforming Sensex which has advanced 7.3 percent.

• Indian equity benchmarks were trading in a narrow range as gains in IT stocks were offset by losses in metal stocks.
• The S&P BSE Sensex rose 0.14 percent to 36,291 and the NSE Nifty 50 index was little changed at 10,955.
• Fourteen out of 19 sector gauges were trading lower led by the S&P BSE Metal index's 2.7 percent drop. Metal stocks fell as base metal prices fell in international markets as trade war between U.S. and China escalated. On the other hand, the S&P BSE IT index was top gainer, up 1.9 percent led by TCS after it beat Bloomberg estimates in June quarter.
• The overall breadth was marginally negative as 1,360 shares were declining while 1,013 were advancing on the BSE.

Click here for more stock market statistics

Shares of the commodity bourse operator pared gains after rising as much as 6 percent after a technical glitch halted trading at the bourse. The trading resumed at 12:56 PM local time.

Meanwhile, a report suggested that MCX is in talks with the National Stock Exchange to combine their operations.

The two exchanges have appointed a global investment banks to help in the discussions, The Economic Times reported citing two unknown people.

National Stock Exchange has appointed Morgan Stanley while JPMorgan is advising MCX, the report added.

• Adani Power: The Ahmedabad-based power producer rose as much as 14.7 percent, the most in over four years, to Rs 19.80. Trading volume was 9.2 times its 20-day average.
• Akzo Nobel: the Gurugram-based paint maker fell as much as 0.4 percent to Rs 1,865. Trading volume was 144.6 times its 20-day average.
• Atul: The Gujarat-based chemical maker rose as much as 4.4 percent to Rs 2,848. trading volume was 20.7 times its 20-day average.
• Larsen & Toubro Infotech: The Mumbai-based IT company rose as much as 7 percent to Rs 1,838. Trading volume was 11.7 times its 20-day average.

• Gujarat Pipavav has 10 lakh shares change hands in a block deal. Stock down 0.5 percent at Rs 120.50.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of metal manufacturers fell after base metal prices fell in international markets as trade war between U.S. and China escalates.

Shanghai Copper fell 3.4 percent, Shanghai Zinc declined 6 percent and Shanghai Aluminium slipped 2 percent.

Back home, gauge of metal shares on the National Stock Exchange declined 2.8 percent dragged by Hidustan Zinc, Vedanta and Jindal Steel.

Shares of the Chennai-based IT company rose as much as 6 percent to Rs 380 after it won an order for Ramco Aviation Suite from Hong Kong Aircraft Engineering Company (HAECO).

Ramco Systems will provide cloud management service to HAECO, the company said in an exchange filing.

Nifty 11,000 strike price call option was among the most active Nifty option contracts on the NSE.

The premium on the contract rose 7.5 percent to Rs 73.75. Over 7 lakh shares were added to the open interest which stood at over 43.92 lakh shares.

Click here to see the complete options chain

Shares of the Mumbai-based government lender rose as much as 10 percent to Rs 58.65, its highest level since June 25.

Life Insurance Corp of India’s investment in IDBI Bank may trigger an open offer for the state-run bank, Bloomberg reported citing an unidentified government official.

Shares of the Delhi-based mortgage lender rose as much as 6.37 percent, the most in over two weeks, to Rs 1,269 as its promoters Punjab National Bank and a Carlyle Group company look to sell their stake in the company.

The companies plan to sell a minimum of 51 percent stake in the housing finance company, according to an exchange filing. PNB and Quality Investment Holdings hold 32.8 percent and 32.3 percent, respectively, in the mortgage and construction lender.

Shares of the Mumbai-based construction steel bars maker rose as much as 7.4 percent, the most in a month, to Rs 85.

Its associate company Vijay Nirman Company (VNC) won orders worth Rs 74.2 crore for construction work at Indira Gandhi International Airport, Delhi.

Shares of the country's largest IT company rose as much as 2.86 percent to Rs 1,928.70 after its profit rose 6.3 percent sequentially to Rs 7,340 crore for the quarter ended June, beating Bloomberg estimate of Rs 6,957 crore.

Key earnings highlights:

• Revenue rose 6.8 percent quarter-on-quarter to Rs 34,261 crore.
• Dollar revenue rose 1.6 percent to $5,051 million.
• Operating profit rose 5.3 percent to Rs 8,578 crore.
• Operating margin contracted 40 basis points to 25 percent.

Shares of the Raichur-based maker and exporter of active pharmaceutical ingredients rose as much as 12.7 percent, the most in over 21 months, to Rs 434 after the U.S. drug regulator closed its inspection of manufacturing plants at Raichur.

The company received Establishment Inspection Report (EIR) from U.S. FDA for API manufacturing facilities at Raichur for inspection carried between Jan. 16-19, Shilpa Medicare said in an exchange notification.

• ICICI Bank has 15.2 lakh shares change hands in a single block. Stock down 0.15 percent at Rs 273.

Buyers and sellers were not immediately known

Source: Bloomberg

Indian equity benchmarks edged lower mirroring losses in other Asian markets as trade war escalated.

The S&P BSE Sensex fell 0.1 percent or 35 points to 36,205 and the NSE Nifty 50 index declined 0.1 percent or 12 points or 10,935.

U.S. moved forward with proposed import tariffs on an additional $200 billion in Chinese goods by releasing a list of targeted products, escalating a trade war that may soon directly hit American consumers.

Back home, losses for benchmarks were capped as Tata Consultancy Services (TCS) moved higher after beating Bloomberg consensus estimates in the June quarter

Sixteen out of 19 sector gauges compiled by BSE were trading lower led by the S&P BSE Metal index’s 1.2 percent drop. On the flipside, the S&P BSE IT index was top gainer, up 0.95 percent.

• Rupee fell 4 paise to 68.86 per dollar against yesterday's close of 68.82.

Who’s Meeting Whom

• VRL Logistics to meet CGS-CIMB Securities India Pvt on July 11.
• Shriram City Union Finance to meet Somerset Capital Management on July 11.
• Coal India to meet investors for divestment of shares from July 11-20.

Insider Trades

• Singer India promoters sold 93260 shares from July 6–9.
• Man Infraconstruction promoter Vatsal Shah acquired 41,000 shares on July 9.

(As reported on July 10)

Bulk Deals

Solara Active Pharma Sciences

• MSD India Fund sold 1.75 lakh shares at Rs 159.42 each.

Bhageria Industries

• Promoter Suresh Bhageria bought 5.25 lakh shares or 2.4 percent equity at Rs 301 each.
• HI FI Trading sold 5.25 lakh shares or 2.4 percent equity at Rs 301 each.

Indiabulls Ventures

• Jasmine Capital Investments PTE bought 1.7 crore shares or 3.3 percent equity at Rs 480 each.
• Cinnamon Capital sold 1.7 crore shares or 3.3 percent equity at Rs 480 each.

Trading Tweaks

• Ramky Infra and V-Mart placed under ASM framework.
• Minda Industries ex-date for 2:1 bonus.
• Solara Active Pharma Sciences shifted to B group with circuit filter of 10 percent.
• General Insurance Corporation of India last trading day before ex-date for 1:1 bonus.
• Ashoka Buildcon last trading day before ex-date for 1:2 bonus.

F&O Cues

• Nifty July futures ended at 10,947.85, with a premium of 0.6 points versus premium of 6.9 points.
• July series-Nifty open interest up 4 percent and Bank Nifty open interest up 10 percent.
• India VIX ended flat at 12.4 percent.
• Max open interest for July series call at 11,000 strike price call option (open interest at 36.8 lakh, OI down 1.4 percent).
• Max open interest for July series put at 10,600 strike price put option, (open interest at 51.9 lakh, down 1 percent).

TCS (Q1,QoQ)

• Revenue up 6.8 percent at Rs 34,261 crore.
• Net profit up 6 percent at Rs 7,340 crore.
• Ebit up 5.3 percent at Rs 8,578 crore.
• Ebit margin at 25 percent versus 25.4 percent.

Earnings To Watch

• Reliance Industrial Infrastructure

• Axis Bank board shortlisted three candidates for the position of Managing Director and Chief Executive Officer.
• Punjab National Bank and Carlyle Group to sell minimum 51 percent stake in PNB Housing Finance to potential buyers.
• Officials indicate that LIC-IDBI deal may trigger an open offer, according to Bloomberg.
• Glenmark Pharmaceuticals launched Helsinn’s Akynzeo drug in India and Nepal.
• Shalimar Paints approved issue of rights issue draft order up to Rs 240 crore and will re-establish its Nashik Plant.
• Tata Motors unit picked up 26 percent stake in freight aggregator company Truckeasy.
• KEC International secured multiple orders worth Rs 1,357 crore.
• BigBloc Construction to acquire Hilltop Concrete for Rs 20 crore.
• Kridhan Infra won order worth Rs 74.2 crore.
• MCX, NSE in talks to team up for bigger exchange play (Economic Times).
• Vedanta to team up with Anglo American to bid for Indian Coal Mines (Economic Times).

• U.S. moves forward on proposed $200 billion China tariff list
• Baseball mitts, handbags hit as Trump tariffs target consumers
• RBI dollar sales hit a near five-year high in May
• Adani emerges as top bidder for city gas retailing licences
• Andhra Pradesh tops the list in ease of doing business
• Vodafone says it got government’s conditional approval for Idea merger
• Supreme Court starts hearing case on legalisation of gay sex
• Sorry, Apple. These are the five best laptops for travellers
• Tesla’s missing number in china factory agreement: The price tag

FIFA World Cup: France Enters Finals

• France beats Belgium 1-0 to enter finals of the FIFA World Cup

Today’s Match Update

• England versus Croatia in semi-finals at 11:30 PM IST tonight

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India fell 0.4 percent to 10,917 as of 7:16 a.m.

Stocks in Asia declined with U.S. equity futures after the Trump administration released the biggest list yet of Chinese goods it may hit with tariff increases. The yen climbed with Treasuries, while the Aussie and kiwi retreated.

Stocks in Hong Kong, Shanghai and Tokyo bore the brunt of the selling as futures on the S&P 500 Index tumbled, ending the positive tone to equities enjoyed at the start of the week thanks to optimism about the corporate-earnings season.

Currencies

• The Japanese yen rose 0.1 percent to 110.88 per dollar, compared with 111.27 before the tariff report came out.
• The offshore yuan fell 0.5 percent to 6.68 per dollar.
• The euro fell 0.1 percent to $1.1728.
• The Aussie was down 0.6 percent at 74.15 U.S. cents.

Commodities

• West Texas Intermediate crude slid 0.9 percent to $73.42 a barrel.
• Copper futures in London lost 3 percent to $6,109 a ton.
• Gold lost 0.3 percent to $1,251.26 an ounce.

These are some events to look out for this week:

• Earnings season gets going with JPMorgan Chase & Co. and Citigroup Inc. among the largest companies due to give results, as well as India’s Infosys Ltd.
• The most noteworthy U.S. data may be the June inflation report on Thursday, which consensus expects will show both headline and core price growth picking up. There’s another deluge of Treasury debt sales too, with a total $156 billion of notes and bills offered.
• Chinese trade data due at the end of the week will probably show slightly slower export growth, after early indicators pointed to softer overseas demand and weaker export orders, Bloomberg Economics said.