Sensex, Nifty End Lower Ahead Of No-Trust Vote; Rupee Closes At All-Time Low

Indian equity benchmarks ended lower for the second day ahead of a no-confidence vote tomorrow on Narendra Modi government.

The S&P BSE Sensex Index ended 0.1 percent lower at 36,351.23 and the NSE Nifty 50 Index ended at 10,957.10, down 0.2 percent.

Nine out of 11 sectoral gauges compiled by NSE fell, led by NSE Nifty Pharma Index's 1.5 percent decline. On the flipside, NSE Nifty FMCG Index was the top sectoral gainer, up 0.8 percent.

Shares of the fast-food restaurant operator fell as much as 18 percent, the most in nearly 14 years, after an error in uploading its quarterly results on the exchanges.

The company had uploaded June quarter results for the financial year gone by.

Vishwavir Ahuja, managing director and CEO at RBL Bank spoke to BloombergQuint on June quarter results.

Key highlights from the conversation:

• Looking at segments like road projects from NHAI.
• Expect 30-35 percent growth going forward.
• Confident of maintaining margin in 4 percent range.
• Majority of growth from new customers.
• Adding 1 million customers per year.
• Will strictly comply with RBI guidelines on stressed assets.

Shares of the optical fiber maker snapped two-day gains and fell as much as 5.8 percent to Rs 296.20. The company announced its quarterly earnings for April-June period in a regulatory filing.

Key earnings highlights (Q1, YoY):

• Net profit up 7.4 percent at Rs 120.7 crore.
• Revenue up 3.6 percent at Rs 877 crore.
• Ebitda up 46 percent at Rs 244.8 crore.
• Margin at 27.9 percent versus 21.9 percent.

Shares of the auto parts maker erased gains and fell as much as 11.2 percent to trade over near a seven-month low at Rs 390.10. The company announced its quarterly results for April-June period in a regulatory filing.

Key earnings highlights (Q1, YoY):

• Revenue up 46.6 percent at Rs 212.6 crore.
• Net profit up 26.1 percent at Rs 14 crore.
• Ebitda up 38 percent at Rs 31.6 crore.
• Margin at 14.9 percent versus 15.8 percent.

The Indian rupee, today, breached 69 against the U.S. dollar for the first time in two weeks and is trading near its all-time low.

European equities traded lower as investors assessed mixed earnings results amid concerns about global growth from the ongoing trade spat.

Key highlights from the conversation:

• Our focus in digital and investment in the right technology has paid off.
• Customers are giving us more impactful projects.
• Deal wins in the past have fully scaled up leading to growth.
• In wait and watch mode for recovery in the BFSI segment.
• Reasonably confidenct that will see growth going forward in the BFSI segment.
• Need to focus on digital and traditional businesses equally.
• Digital is growing at a faster pace.
• Client concentration remains a concern.
• We are confident that will have customer growth.
• Focusing on diversification of client base.
• Identifying and working on pain point of customers.
• Have seen good progress in all four verticals.
• Growth in all four verticals will pay off soon.

Watch the full conversation here:

Shares of the snacks maker snapped a two-day decline and rose as much as 2.5 percent to Rs 1,224.80.

The company plans to consider a stock split in its meeting on Aug. 6, according to its stock exchange notification.

The stock declined 19.8 percent over the past year, compared to a 15.4 percent advance in Sensex, Bloomberg data showed.

The Ministry Of Road Transport & Highways, today, notified revised axle weight norms for all transport vehicles, according to its statement

Key highlights from the statement:

• Group of State Transport Ministers recommended increasing permissible axle weight of commercial vehicles.
• Ministry revised maximum safe permissible axle weight for transport vehicles.
• Ministry advises states to ensure rigorous enforcement measures to curb overloading.

Shares of the private-sector lender declined for a third consecutive day and are poised for its longest losing streak in nearly two months. The stock fell as much as 2.1 percent to Rs 1,369.20. The company net profit for April-June period missed estimates.

Key earnings highlights (Q1, YoY):

• Net profit up 12.3 percent at Rs 1,025 crore. (Bloomberg estimate at Rs 1,213 crore)
• NII up 15 percent at Rs 2,583 crore.
• Gross NPA at 2.17 percent veruss 2.22 percent (QoQ).
• Net NPA at 0.86 percent versus 0.98 percent (QoQ).
• Provisions at Rs 469.6 crore versus Rs 306.9 crore (QoQ), Rs 203.7 crore (YoY).
• Advances up 24 percent at 1.77 lakh crore.
• CASA Ratio at 50.3 percent versus 43.9 percent.
• NIM at 4.3 percent.
• Capital Adequacy Ratio for Basel III at 18.3 percent.

Shares of Bajaj Finance fell as much as 5.3 percent, the most in over five months, to Rs 2,357.50 after the lender announced its results for the quarter ended June. The stock was the worst performer on the Nifty.

The company's net profit rose 81 percent on a yearly basis to Rs 836 crore during April-June quarter, according to its stock exchange notification.

Key earnings highlights (consolidated) (Q1, YoY):

• Net profit up 81 percent at Rs 836 crore.
• NII up 46 percent at Rs 2,578 crore.
• Gross NPA at 1.39 percent, Net NPA at 0.44 percent.
• Loan losses and provisions at Rs 327 crore versus Rs 305 crore (YoY).
• AUM growth at 35 percent.

The Mumbai-based real estate developer will use most of the funds it plans to raise from its Rs 5,500-crore initial public offering to retire debt, its Chief Executive Officer Abhishek Lodha told BloombergQuint in an interaction. (more details here)

Watch the full conversation:

Shares of the print media company snapped a three-day decline, its longest losing streak in nearly a month. The stock rose as much as 2.4 percent to Rs 259.70.

Key earnings highlights (Q1, YoY):

• Net profit down 11.3 percent at Rs 97.6 crore. (Bloomberg estimate at Rs 97.7 crore).
• Revenue up 6.7 percent at Rs 632.3 crore.
• Ebitda down 10 percent at Rs 168 crore.
• Margin at 26.6 percent versus 31.4 percent.

Shares of the Bengaluru-based software developer pared losses and traded a little changed at Rs 1,320 as of 11:50 a.m.

The information technology firm’s philanthropic arm entered into an agreement today with Bangalore Metro Rail Corporation to build and maintain a metro station at Konappana Agrahara in Electronics City, Bengaluru, according to its stock exchange notification.

“Infosys Foundation will maintain it for 30 years and the station is expected to operational by 2021,” the statement added.

Shares of the private lender snapped two-day rally and fell as much as 3 percent to Rs 548. The company announced its quarterly results for April-June period in a regulatory filing.

Key earnings highlights (Q1, YoY):

• Net profit up 35 percent at Rs 190 crore.
• NII up 46 percent at Rs 552.7 crore.
• Gross NPA unchanged at 1.4 percent (QoQ).
• Net NPA at 0.75 percent versus 0.78 percent (QoQ).
• Provisions at Rs 140.4 crore versus Rs 112.9 crore (QoQ); Rs 94.5 crore (YoY).
• NIM at 4.04 percent versus 3.54 percent (YoY).
• CASA ratio at 24.4 percent versus 22 percent (YoY).

India is placed at a better spot compared to its peers if the ongoing U.S.-China trade war dominates the sentiment over the next six-seven months, Bharat Iyer head of India equity research at JPMorgan said.

Watch the full interaction here:

Key highlights from the conversation:

• FY18-19 to have lower returns and higher volatility.
• Markets caught between macro and micro dynamics.
• Advocating neutral stance towards Indian markets.
• India facing two cyclical headwinds.
• India a small part of global value chain.
• India would fare better in case of a trade war.
• IPOs to attract foreign investment.
• Will have to live with expensive money.
• Higher commodity prices on course.
• Earnings to grow by 20 percent in June quarter.
• Earnings Recovery: Urban consumption to be a strong area.
• Government and private infra sector to remain robust.
• Reclassification of mf schemes triggered sell off.
• 'Growth will continue to outperform value as an investment style'.
• Cement: 'volume growth tepid for most of last year'.
• 'Cement pricing power to return'.
• 'One year is a very long time in politics'.
• 'Too early to price in major political risk'.
• Should prepare for volatility in Nov-Dec 2018.
• Markets not giving credit where it's due.
• Crude may mess up India's macros.

The NSE Nifty IT Index snapped a four-day winnings streak and is the worst sectoral performer on NSE. The index fell nearly 1 percent today, led by Mindtree Ltd.'s 8 percent drop.

Shares of the sponge iron products maker fell as much as 3.9 percent to trade near four-month low at Rs 915.20. The company had announced its earnings for the June quarter on Tuesday.

Key earnings highlights (Q1, YoY):

• Revenue up 49.1 percent at Rs 260.9 crore.
• Net profit up 49 percent at Rs 45.6 crore.
• Ebitda up 55.6 percent at Rs 60.2 crore.
• Margin at 23.1 percent versus 22.1 percent.

Sanjay Pattnaik, managing director at Tata Sponge Iron spoke to BloombergQuint today. Here are the key highlights from the conversation:

• Higher volumes, reduced fixed cost helped the company to clock growth in Q1.
• Expect realisations to be lower by Rs 1500-2000 per tonne in Q2.
• Do not see a further increase in iron ore price, see volatility in coal price.
• Aim to offset a rise in raw material costs through volume growth.

About 10 lakh shares changed hands in a block deal on Bombay Stock Exchange, according to Bloomberg report. Buyers and sellers were not known immediately.

Key highlights from the conversation:

• Mature centres are clocking operating margins at over 20 percent.
• New centres are taking around four years to become a mature centre.
• Newer centres are now focusing on OPD department.
• Average ALOS (Average Length Of Stay) is 2.5 days at present.

Key highlights from the conversation:

• Seeing demand growth coming back after a couple of years.
• Highly unlikely that PM Modi will not come back to power next year.
• See value emerge in some of the smaller beaten down stocks.
• Expect global rates to continue the upward trajectory.
• Believe money will flow back from domestic and foreign institutions.

Shares of the state-run oil explorer extended gains for the third day and rose as much as 3.1 percent to trade at one-month high at Rs 165.20.

The Cabinet, yesterday tweaked pre-1999 oil and gas contracts to provide for proportionate sharing of statutory levies like royalty and cess between the operators of an area, and not put the entire burden on state-owned ONGC, according to a PTI report.

The stock was the best performer on Sensex and Nifty. Trading volume was 4.4 times its 20-day average, according to Bloomberg data.

Shares of Balrampur Chini Mills Ltd. Dhampur Sugar Mills Ltd. and Dalmia Bharat Sugar & Industries Ltd. fell in today’s trade.

The government decided to increase the minimum price sugar mills pay to cane growers by Rs 20 per quintal to Rs 275 per quintal for the next marketing year starting October, PTI reported quoting sources.

Shares of the Bengaluru-based software developer extended declines for the second day and fell as much as 8 percent, the most since November 2016, to Rs 1,012.05.

The company profit fell 18 percent on a sequential basis to Rs 158.2 crore, according to its stock exchange filing.

Key earnings highlights (Q1, QoQ):

• Revenue up 12 percent at Rs 1,639.5 crore.
• Net profit down 13.2 percent at Rs 158.2 crore.
• EBIT down 1.7 percent at Rs 188.2 crore.
• Margin at 11.5 percent versus 13.1 percent.

Indian equity benchmarks open higher, following its Asian peers. The S&P BSE Sensex Index rose as much as 0.4 percent to 36,515 and the NSE Nifty 50 Index rose as much as 0.2 percent to 11,006.

The market breadth was tilted in favour of buyers. Seven out of 11 sectoral gauges compiled by NSE advanced, led by NSE Nifty Auto Index’s 0.4 percent gain. On the flipside, NSE Nifty PSU Bank Index was the top sectoral loser, down 0.3 percent.

The Indian rupee opened today at 68.68 against the U.S. dollar after depreciating about 0.1 percent. The benchmark 10-year bond jumped three basis points to 7.78.

Indian bond traders will focus on RBI's Rs 10,000 of debt purchases via open-market operations.

The rupee may start trading weaker along with most Asian emerging currencies as U.S. yields climb. Implied opening from forwards suggest spot will start trading around 68.5995, Bloomberg data showed.

Yield on benchmark 10-year bonds rose 1 basis point yesterday to 7.75 percent. It fell 7.71 percent intraday, driven by the OMO bond-purchase announcement and lower oil prices.

F&O Cues

• Nifty July futures closed trading at 10,978.6 discount of 1.8 points versus premium of 15.7 points.
• July series: Nifty open interest down 2 percent; Bank Nifty open interest down 2.4 percent.
• India VIX ended at 13.6, up 6.6 percent.
• Max open interest for July series at 11,100 Call (open interest at 35.9 lakh, up 16 percent)
• Max open interest for July series at 10,800 Put (open interest at 43.7 lakh, down 6 percent)

F&O Ban

• In ban: Adani Enterprises, Adani Power
• Out of ban: Jet Airways

Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty incase of rollover of these intraday positions

Put Call Ratio

• Nifty PCR at 1.65 versus 1.68
• Nifty Bank PCR at 0.85 versus 1.15

Brokerages On Bandhan Bank

Goldman Sachs

• Maintained ‘Buy’; raised price target to Rs 710 from Rs 689.
• Strong quarter driven by loan growth, better lending spreads and healthy asset quality.
• Expect average operating profitability levels of 6.5 percent through the financial years till March 2021.
• Expect better fee income and improving productivity levels.
• Expect premium valuations to sustain given its superior profitability.

Macquarie

• Maintained ‘Outperform’ with a price target of Rs 560.
• June quarter beats estimates on strong growth.
• Bank capitalising on its reach & lowest-in-industry funding cost.
• Lower deposit growth tactical, no liquidity challenges.

Brokerages On Ultratech Cement

Macquarie

• Maintained ‘Outperform’; cut price target to Rs 4,800 from Rs 4,950.
• June quarter’s operating income was in line with estimate.
• Benefits of operational leverage from strong volume offset cost pressure.
• Cost headwinds persists but are close to peak.
• Expect price hike post monsoon would be the key trigger.

JP Morgan

• Maintained ‘Neutral’ with a price target of Rs 4,100.
• June quarter’s operating income surpassed marginally, driven by higher other operating income.
• Volume growth driven on JPA ramp up; Like-to-like volume growth at 10 percent.
• Cost pressures remain high.
• Cement price recovery in second half holds the key.

Credit Suisse on Mindtree

• Maintained ‘Neutral’; raised price target to Rs 925 from Rs 875.
• Extremely strong revenue growth in June quarter.
• Growth has been well-rounded across segments.
• Margins, however, did not surprise positively.
• Valuations rich with high client concentration.

Credit Suisse on NIIT Tech

• Maintained ‘Neutral’; raised price target to Rs 1,150 from Rs 1,100.
• June quarter results reflect positive momentum.
• Financial and Insurance services growth strong driven by large U.S. clients.
• Retain Neutral rating due to high valuations.

• TCNS Clothing IPO gets 10 percent demand for shares offered on first day sale, offer close on July 20.

Nifty Earnings To Watch

• Bajaj Finance
• Bajaj Finserv
• Kotak Mahindra Bank

Other Earnings To Watch

• ABB India
• DB Corp
• Hatsun Agro Products
• RBL Bank
• Sterlite Technologies

Earnings Reaction To Watch

Mindtree (Q1, QoQ)

• Revenue up 12 percent at Rs 1,639.5 crore.
• Net profit down 13.2 percent at Rs 158.2 crore.
• EBIT down 1.7 percent at Rs 188.2 crore.
• Margin at 11.5 percent versus 13.1 percent.

Mahindra CIE Automotive (Q2, YoY)

• Revenue up 44.6 percent at Rs 650 crore.
• Net profit at Rs 43.9 crore versus Rs 17.6 crore.
• Ebitda at Rs 81.6 crore versus Rs 42.6 crore.
• Margin at 12.6 percent versus 9.5 percent.

JK Tyres & Industries (Q1, YoY)

• Revenue up 35 percent at Rs 2,439.5 crore.
• Net profit at Rs 64.1 crore versus net loss at Rs 117.2 crore.
• Ebitda at Rs 325.5 crore versus Ebitda loss at Rs 1 crore.
• Margin at 13.3 percent versus -0.1 percent.

Reliance Communications (Q1, QoQ)

• Revenue up 6 percent at Rs 1,006 crore.
• Net loss at Rs 342 crore versus net loss at Rs 19,776 crore.
• Ebit loss at Rs 114 crore versus Ebit loss at Rs 74 crore.

Artson Engineering (Q1, YoY)

• Revenue up 24 percent at Rs 36.2 crore.
• Net loss at Rs 2.9 crore versus net profit at Rs 0.5 crore.
• Ebitda loss at Rs 1.4 crore versus Ebitda of Rs 1.9 crore.

• DFM Foods to consider for stock split on August 6.
• Poddar Housing and Development acquires 5,800 square metres land in Pune, with a saleable area of 1.4 lakh square feet.
• Indian Overseas Bank receives communication for infusion of Rs 2,157 crore by the government.
• SH Kelkar expects revenue growth this quarter to be moderate.
• ONGC, Oil Indian in focus as cabinet lowers cess on pre NELP block.
• JSW Steel to consider raising funds through debentures on July 25.
• Coal India says dispatched 122.2 mt coal to power sector in first quarter.
• Reliance Communication says confident of resolving debt with lenders.

• Modi to face no-confidence vote as opposition ramps up pressure.
• Why Kumar Mangalam Birla thinks the economy is not doing so well
• Here’s why Google’s Android earned it a $5 billion fine from the EU
• Morgan Stanley is on a roll on Wall Street
• Modi’s great road trip hits a debt pothole.
• India’s dirty secret is an oil market headache.
• Government hikes sugarcane price by Rs 20 per quintal.
• IBM answers some doubters with revenue growth, cloud sales.
• Haley defends U.S. decision to quit UN's Human Rights Council.
• Musk enlisted Sierra Club to deflect flak over GOP donation.
• MGM Resorts suffers backlash after suing shooting victims.
• Papa John's surges on report ousted chair had held merger talks with Wendy’s.
• Ferrari wants its Ferraris back from New York's ‘Taxi King’.
• New York City will force Airbnb to disclose information on hosts.
• Avon is trying to give itself a makeover.
• Trillion dollar inheritance: The world’s biggest family fortunes.
• Buffett gets richer even after donating $3.4 billion to charity.

• West Texas Intermediate crude rose 0.4 percent to $69 a barrel.
• Brent crude traded 0.1 perrcent higher at $72.98 per barrel.
• Gold was little changed at $1,228.38 an ounce.

Shanghai Exchange

• Steel ended higher for second day; up 1.2 percent
• Aluminium traded higher; up 0.4 percent.
• Zinc traded higher for second day; up 4.8 percent.
• Copper snapped two-day losing streak; up 0.6 percent.
• Rubber traded higher for third day; up 0.1 percent.

Also Read: India’s Dirty Secret Is an Oil Market Headache

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.3 percent higher at 11,012.50 as of 8:30 a.m.

Asian stocks gained as investor optimism about the earnings season took root. Australia’s dollar jumped after the country’s employment surged in June.

Equity indexes climbed across the region after gains in U.S. financials, spurred by results at Morgan Stanley, pushed the S&P 500 Index up to within 2 percent of its record.