Sensex Ends At Record High Led By RIL; Mid, Small Caps Decline

India's S&P BSE Sensex closed at a record high led by a rally in Reliance Industries. But the broader markets declined.

The S&P BSE Sensex rose 0.8 percent or 383 points to 36,548 and the NSE Nifty 50 index climbed 0.7 percent or 75 points to 11,023.

Rally in today's session was led by Reliance Industries after a surge in its shares made it India's second company to enter the $100 billion club this year, a feat which RIL reclaimed after a decade. However, the broader markets came under selling pressure with the Nifty Midcap 100 index declining 0.4 percent and Nifty Smallcap 100 index slipping 0.2 percent.

Nifty stocks which have a weight of more than 65 percent on the Nifty are rallying while others are near 52-week lows, AK Prabhakar, head of research at IDBI Capital told BloombergQuint over phone. “What is the point of Sensex hitting all-time high and Nifty reclaiming 11,000 when people are not making money and portfolios are not recovering,” he said.

Eleven out of 19 sector gauges compiled by BSE ended lower led by the S&P BSE Realty index's 1 percent drop. On the other hand, the S&P BSE Energy index was top gainer, up 3 percent.

Shares of the Mangalore-based bank rose as much as 6.7 percent to Rs 126.70 after it announced June quarter earnings.

Key earnings highlights:

• Net interest income up 10.4 percent at Rs 468.58 crore versus Rs 424.42 crore (YoY)
• Net profit up 22 percent at Rs 163.24 crore versus Rs 133.85 crore (YoY)
• Net non-performing assets as a percentage of total advances at 2.92 percent versus 2.6 percent (QoQ)
• Gross non-performing assets as a percentage of total advances at 4.72 percent versus 4.92 percent (QoQ)

• ICICI Bank has 10 lakh shares change hands in a block. Stock up 1.5 percent at Rs 273.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of small- and mid-cap companies were underperforming their larger peers as the S&P BSE MidCap index fell 0.6 percent and the S&P BSE SmallCap index declined 0.2 percent. At the same time, the S&P BSE Sensex rose 0.9 percent.

Shares of the Ahmedabad-based textile maker witnessed sudden spike. The stock rose as much as 3.35 percent to Rs 417.

• Adani Power has 14 lakh shares change hands in a block. Stock down 5.6 percent at Rs 19.25.

Buyers and sellers were not immediately known

Source: Bloomberg

India may be the fifth biggest economy next year if growth continues at same pace, Union Minister Arun Jaitley said in New Delhi while speaking on economic growth.

• Marico has 20 lakh shares change hands in a block. Stock up 2 percent at Rs 350.35.

Buyers and sellers were not immediately known

Source: Bloomberg

• Ashoka Buildcon: The Mumbai-based road developer rose as much as 18.4 percent to Rs 189.40. Trading volume was 20.4 times its 20-day average.
• Central Bank of India: The Mumbai-based PSU bank rose as much as 1.45 percent to Rs 70. Trading volume was 14.8 times its 20-day average.
• Pfizer: The Mumbai-based drugmaker rose as much as 2.6 percent to Rs 2,600. Trading volume was 12.7 times its 20-day average.
• Trent: The Mumbai-based department store operator rose as much as 7.8 percent to Rs 378. Trading volume was 11 times its 20-day average.

Reliance Industries becomes second Indian company to make it to the top 100 most valuable companies by market cap in the world.

Rank 81: TCS

• Market cap $110 billion

Rank 98: Reliance Industries

• Market cap $100 billion

Next in line: HDFC Bank

• Market cap $82.6 billion

Source: Bloomberg

Shares of the steel forging maker rose as much as 4.8 percent to Rs 1,472.95 apiece after it announced the issue of bonus shares at its annual general meeting on July 11.

The company announced one bonus share for every one share held, according to its exchange notification.

• Mukesh Ambani-led oil-to-telecom conglomerate reclaimed market capitalisation of $100 billion for the first time since Jan. 2008.

• Indian equity benchmarks extended gains led by Reliance Industries, HDFC twins and Larsen & Toubro after crude dropped most in two years.
• The S&P BSE Sensex rose 1.05 percent or 380 points to 36,646 and the NSE Nifty 50 index climbed 1.07 percent or 117 points to 11,065.
• Seventeen out of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Energy index's 3.2 percent gain. On the flipside, the S&P BSE IT index was top loser, down 0.4 percent.
• Market breadth was positive as 1,444 shares were advancing while 821 were declining on the BSE.

Nifty Bank's 27,200 strike price call option was among the most active option contracts on the National Stock Exchange ahead of weekly expiry.

Premium on the contract surged over 10 times to Rs 30.90. As many as 13.99 lakh shares were added to the open interest which stood at over 18.45 lakh shares.

Click here to see the complete options chain

• Petronet LNG has 13.5 lakh shares change hands in a block deal. Stock down 0.8 percent to Rs 219.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the country's largest infrastructure company rose as much as 1.55 percent to Rs 1,294 after it won orders worth Rs 2,390 crore.

Water and effluent treatment business of L&T Construction won the order for execution of Satna, Kundatiya and Mohanpura multi village rural water supply schemes on turnkey basis from Madhya Pradesh, L&T said in an exchange filing.

Shares of the Bengaluru-based communications equipment maker rose by its daily maximum limit of 5 percent to Rs 45.85.

MRO-TEK Realty got empaneled with Bharat Sanchar Nigam Limited (BSNL) as a national systems integrator partner for enterprise business, it said in an exchange filing.

Shares of the Delhi-based pesticides company rose as much as 2.2 percent to record high of Rs 7,416.

Abhishek Aggarwal, president for strategic alliances & corporate sales at Bharat Rasayan in an interview to BloombergQuint said the company has benefited from Chinese crackdown on polluting industries.

Key highlights of the conversation:

• Four key players globally in the space
• Benefitted from the Chinese authorities' crackdown on polluting industries
• Seeing huge opportunity for Indian players
• Market share of more than 50 percent in 3 to 4 products
• Very few players in this space
• Working on a Greenfield project
• The project to be funded through internal accruals

Shares of state-run oil retailers surged after WTI Crude slumped 5 percent, the most in 2 years on escalating trade war concerns.

• Hindustan Petroleum rose 4.2 percent to Rs 276
• Bharat Petroleum gained 4 percent to Rs 381
• Indian Oil climbed 3.8 percent to Rs 160

Shares of the Bengaluru-based cafe chain operator rose as much as 2.7 percent to Rs 271.90 after it signed an agreement with UberEats for distribution of food products for five years, Coffee Day Enterprises said in an exchange filing.

Shares of the Mukesh Ambani-led firm rose as much as 1.6 percent to hit a new all-time high to Rs 1,055.50.

The stock was the best performer on Sensex. Trading volume was five-times its 30-day average, Bloomberg data showed. The scrip rose for the fifth day, its longest winning streak in over a month.

The stock has outperformed by rising 15 percent, so far this year, compared with Sensex’s gain of 7.2 percent.

As India's benchmark indices hit fresh highs, CLSA's India Strategist Mahesh Nandurkar sees some red flags to watch out for.

Here are the key highlights from his conversation with BloombergQuint:

• India's macro picture remains a key concern
• Seeing improvement in corporate earnings
• Short duration debt markets look more attractive
• Would not rule out 10-year yield touching 8 percent
• Expect more than one rate hike this year
• Have seen some slowdown in domestic inflows
• Emerging market funds seeing some outflow including India
• Large-cap stocks have been the point of attraction for FII's
• Expect another 2-4 rate hikes by the FED over next 12-18 months
• Valuation of tobacco stocks looks attractive
• Evidence of revival in U.S. BFSI space positive for IT companies
• Maintain neutral stance on IT
• Bullish on pharma and healthcare stocks with a double overweight rating
• Believe real estate has bottomed out and should improve in second half of FY19

India's Sensex rose to a fresh all-time high and the Nifty 50 index reclaimed 11,000 mark for first time since the Budget day.

The S&P BSE Sensex rose 0.6 percent or 216 points to a fresh record high of 36,482 and the NSE Nifty 50 index reclaimed 11,000 mark, rising as much as 0.67 percent or 73 points to 11,022.

Rally in today's session was led by gains in heavyweights like Reliance Industries and banking shares.

Click here for more stock market statistics

• Rupee edged higher to 68.66 per dollar against yesterday's close of 68.77.

Jefferies on HEG

• Maintained ‘Buy’ with a price target of Rs 4,400.
• Expect realisation to remain robust as demand supply tightness continues.
• Phillips66 needle coke debottlenecking will help improve utilisation.
• Expect the demand for Graphite Electrode within China to increase.
• Management. looking at different avenues within carbon space for cash utilisation.

IDFC Securities on Tata Steel

• Maintained ‘Outperform’ with a price target of Rs 755.
• Company reiterated that it will pursue growth opportunities in India.
• Tata Steel working on to supply excess iron ore to Bhushan Steel plants.
• Balance sheet leveraged, but capable of servicing debt.
• Negative already priced in; Advise buying on declines.

Who’s Meeting Whom

• Eris Lifesciences to meet Edelweiss Asset Management on July 12.
• Mahindra & Mahindra to meet investors on July 13.
• Allcargo Logistics to meet Birla Mutual fund and Morgan Stanley Investment Management on July 12.
• Finolex Industries to meet Birla MF, Franklin Templeton and other investors on July 12.

Insider Trades

• Century Enka promoter group sold 3.9 lakh shares on July 9.
• Liberty Shoes promoter group Anmol Gupta acquired 5,000 shares from July 5-6 and promoter group sold 1,300 shares on July 10.
• Vaibhav Global promoter and director Rahimullah sold 1.2 lakh shares on July 9.
• Maxheights Infra promoter and director Naveen Narang sold 12,600 shares on July 10.
• V-Mart Retail promoter group sold 15,000 shares from July 9 to July 10.

(As reported on July 11)

Bulk Deals

Indiabulls Ventures

• Jasmine Capital Investments Pte Ltd acquired 72.9 lakh shares or 1.4 percent equity at Rs 286.5 each.
• Cinnamon Capital Ltd sold 72.9 lakh shares or 1.4 percent equity at Rs 286.5 each.

Trading Tweaks

• Hathway Cable & Datacom circuit filter revised to 10 percent.
• Ashoka Buildcon ex date for 1:2 bonus.
• General Insurance Corporation of India ex date for 1:1 bonus.
• Talwalkars Lifestyles Limited last trading day before shifting to B group.

F&O Cues

• Nifty July Futures ended at 10,938.6, with a discount of 9.7 points.
• July series-Nifty open interest (OI) up 3 percent and Bank Nifty open interest down 7 percent.
• India VIX ended flat at 12.7, up 3 percent.
• Maximum open interest for July series call at 11,000 strike price call option, Open Interest at 43 lakh shares, up 17 percent.
• Maximum open interest for July series put at 10,600 strike price put option, Open Interest at 52.8 lakh shares, up 2 percent.

• 5:30pm: India June CPI year-on-year, estimate 5.3 percent, prior 4.87 percent.
• 5:30pm: India May Industrial Production YoY, estimate 4.5 percent, prior 4.9 percent.

• Cyient
• Karnataka Bank
• Talwalkars Lifestyles

Earnings Reaction To Watch

Reliance Industrial Infrastructure Ltd (Q1, YoY)

• Revenues down 12.4 percent to Rs 21.2 crore.
• Net profit up 5.6 percent to Rs 1.9 crore.
• Ebitda down 51.8 percent to Rs 2.7 crore.
• Margin at 12.7 percent versus 23.1 percent.

• Idea Cellular said that the current approval of DoT for merger with Vodafone is conditional and not a final approval.
• Power Grid arm started full commercial operations in Maharashtra.
• MRO-Tek Realty received empanelment with BSNL for enterprise business.
• Shree Ajit Pulp and Paper received export order for 1240 MT of kraft paper worth Rs 4.06 crore.
• Coffee Day Enterprises arm entered into an agreement for five years with UBER for distribution of food products.
• Mannapuram Finance: Quinaq Acquisition (FPI) increased stake to 9.94 percent.
• IDFC: Rinkoo Somani appointed as Interim CFO.
• Satin Creditcare Network approved transfer of MSME business to arm; to acquire 11 lakh shares in subsidiary for Rs 3.3 crore.
• Bank of Baroda clarified candidature of its MD & CEO PS Jayakumar to succeed Axis Bank CEO Shikha Sharma is speculative.
• Omaxe bagged Gandhi Maidan project for development of multilevel car parking space by NMDC.
• Chambal Fertilisers and Chemicals approved voluntary winding up its arm Inuva.
• Sun Pharma arm filed lawsuit against Bifrontera for patent infringement and trade secret misappropriation.
• IFCI hiked its short-term benchmark rates by 10 basis points to 9.1 percent from July 12.
• MCX probing software, hardware lapses causing glitch, Bloomberg reported.
• Bank of Baroda and Korea's KB Financial Group ink MoU to set up financing corridor.
• IDBI Bank raises MCLR by 10 basis points to 9.6 percent from July 12.
• Shree Cement arm completed acquiring 97.61 percent stake in UAE based UCC.
• NCLT to hear insolvency plea against RHC holding on July 25, Bloomberg reported.
• India Gylcols mull raising Rs 250 crore via issue of securities.
• Max India promoters clarifies SEBI has not mandated an open offer in its order.
• Cipla’s wholly owned subsidiary acquired South African company –Mirren (Pty) Ltd. for Rs 228 crore.
• Kwality to close dairy products business in UAE.
• Max Group promoters said that SEBI has not mandated promoters to carry out an open offer anywhere in its order.

• Rupee’s top forecaster is going against the crowd
• What contributed to Nifty’s 1,000-point jump from March low
• India overtakes France as world’s sixth largest economy
• U.S.-China trade talks grind to a halt
• Iran says ‘will do our best’ to ensure oil supply to India
• LIC-IDBI Bank deal may conclude by September
• Digital renaissance and Reliance
• Trump’s made Asia junk investors nervous nellies
• Panel of ministers mulls 1% cess on luxury items, tobacco
• India bucks emerging markets trend of fuel price cuts
• Not everyone wearing saffron is BJP: Nitin Gadkari on trolls and vigilantes
• Papa John's slides after founder finds himself in hot water again

FIFA World Cup: Croatia Enters Finals

• Croatia beats England 2-1 in extra time to finals of the FIFA World Cup.

Wimbledon: Roger Federer Knocked Out Of Wimbledon

• Kevin Anderson beat Roger Federer 2-6, 6-7, 7-5, 6-4, 13-11 to reach the Wimbledon semi-finals.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India rose 0.3 percent to 10,982 as of 7:51 a.m.

Asian stocks posted modest gains after a bruising Wednesday sell-off, despite lingering concerns around the U.S. and Chinese trade war that show little sign of abating. The dollar held an advance and crude oil steadied after its biggest plunge in two years.

Shares in Japan, China, South Korea and Australia all edged higher, paring some of yesterday’s losses.

Currencies

• The Bloomberg Dollar Spot Index rose less than 0.05 percent.
• The Japanese yen fell 0.2 percent to 112.28 per dollar, hitting the weakest since January.
• The euro rose less than 0.05 percent to $1.1676.
• The offshore yuan rose 0.1 percent to 6.7168 per dollar.

Commodities

• West Texas Intermediate crude rose 0.2 percent to $70.54 a barrel.
• Gold rose 0.1 percent to $1,242.96 an ounce.
• LME copper increased 0.6 percent to $6,179.00 per metric ton.

These are some events to look out for this week:

• Earnings season gets into gear 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.
• 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.