Sensex, Nifty Clock Fourth Weekly Gain On Earnings Cheer

India's NSE Nifty 50 index rose to a fresh all-time closing high, as investors cheered strong earnings by Indian companies in April-June quarter.

The S&P BSE Sensex rose 0.75 percent or 284 points to 37,947.88 and the NSE Nifty 50 index climbed 0.75 percent or 86 points to record closing high of 11,470.75.

On a weekly basis, the benchmarks extended gains to fourth week with the Sensex advancing 0.21 percent and the Nifty rising 0.36 percent.

Three-fourths of the Nifty 50 companies either surpassed or met forecasts in April-June quarter, the highest in at least three quarters, according to data compiled by BloombergQuint.

In today’s trade, all sector gauges compiled by National Stock Exchange ended higher led by the Nifty PSU Bank index’s 3.02 percent surge.

The mid- and small-cap shares outperformed their larger peers as the Nifty Midcap 100 and Nifty Smallcap 100 indexes rose 1 percent.

Shares of the parent of DMart department store operator rose as much as 4.5 percent to Rs 1,634.

With today's surge in share price, the company reclaimed Rs 1 lakh crore in market capitalisation. The market cap of Avenue Supermarts rose by Rs 43,500 crore, according to Bloomberg.

• GMR Infra has 13.3 lakh shares change hands in a block. Stock up 7.9 percent at Rs 19.00.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the Anil Ambani-led company rose 4 percent to Rs 19.30.

The company has challenged spectrum trading norms in the Supreme Court and a two-judge bench headed by Justice Rohinton Nariman today stayed a telecom tribunal order that rejected Reliance Communications' plea against spectrum sale and trading guidelines.

"Department of telecom had demanded around Rs 4,200 crore from RCom to allow sale or trading of spectrum auctioned in 2013 and later acquired by RCom," the company's lawyer Shally Bhasin said.

Source: Bloomberg

India's S&P BSE Sensex reclaimed 38,000 mark led by ITC, ICICI Bank, State Bank of India and Hindustan Unilever.

The S&P BSE Sensex rose 0.9 percent or 346 points to 38,008 and the NSE Nifty 50 index climbed 0.84 percent or 96 points to 11,481.

The overall market breadth remained positive as 1,613 shares were advancing while 1,002 were declining on the BSE.

• Reliance Communications has 18 lakh shares change hands in a block in second block deal. Stock up 4.3 percent at Rs 19.35.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the Mumbai-based IT company rose as much as 6.65 percent to Rs 127.50 after its U.S.-based subsidiary Trigyn Technologies Inc. was awarded a contract to provide enterprise staffing services for the State of Minnesota in U.S., the company said in an exchange filing.

The contract is for a duration of four and a half years, to January 2023, the filing added.

Indian equity benchmarks rose close to record highs led by ITC, ICICI Bank, Reliance Industries and Kotak Mahindra Bank.

The S&P BSE Sensex rose 0.8 percent or 295 points to 37,958 and the NSE Nifty 50 index climbed 0.7 percent to 11,467.

Seventeen out of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Metal index's 2 percent gain. On the other hand, the S&P BSE Telecom index was trading marginally lower.

The overall market breadth was positive as 1,598 shares were advancing while 938 were declining on the BSE.

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European stocks steadied after equities in Asia ended a tumultuous week on a positive note. The dollar fell and Treasuries were little changed.

• South Indian Bank has 10 lakh shares change hands in a single block. Stock up 1.4 percent at Rs 18.35.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the country's largest wireless carrier fell as much as 1.57 percent to Rs 366.15.

The Supreme Court's two-judge bench headed by Justice Rohinton F. Nariman said it will hear Aircel’s plea seeking Rs 450 crore from Airtel after two weeks.

• Tata Investment Corp: The Mumbai-based institutional brokerage rose as much as 5 percent to Rs 824.95. Trading volume was 14.5 times its 20-day average.
• Shriram City Union Finance: The Chennai-based consumer finance company fell as much as 3.25 percent to Rs 1,940. Trading volume was 11.3 times 20-day average.
• Tube Investment: The Chennai-based fabricated metal products maker rose as much as 5.35 percent to Rs 271.80. Trading volume was 10.6 times its 20-day average.
• Shankara Building Products: The Bengaluru-based home improvement products maker fell as much as 1.97 percent to Rs 1,620.50. Trading volume was 13.7 times its 20-day average.

• Reliance Communications has 10 lakh shares change hands in a block. Stock up 2.7 percent at Rs 19.05.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the Bengaluru-based drugmaker rose as much as 4.2 percent to Rs 1,780 after it received permission from the Drugs Controller General of India to import and market Olaparib Tablets, AstraZeneca Pharma said in an exchange filing.

Olaparib Tablets is indicated for treating ovarian and breast cancer, the exchange filing added.

Shares of the Mumbai-based toll road developer rose as much as 5.3 percent to Rs 34.90 after it signed definitive agreements with Ramky Infrastructure worth Rs 43.20 crore.

The two companies signed agreements for:

• Sale of entire equity stake of 11.67 crore equity shares of Rs 10 each representing 50 percent held in NAM Expressway.
• Acquiring 4.2 equity shares of Rs 10 each representing 50 percent held in Jorabat-Shillong Expressway Limited (JSEL).

Shares of the Mumbai-based water treatment equipment maker were locked in a five percent upper circuit at Rs 410.35 after it secured an engineering, procurement, supply and construction contract worth Rs 438.84 crore from Vedanta arm Cairn Oil & Gas, the Ion Exchange said in a stock market notification.

Shares of the Mumbai-based cable television services provider rose as much as 8.76 percent to Rs 19.25 after the brokerage firm Ambit maintained its 'buy' call on the stock for a target price of Rs 30.

Ambit in a note said:

• Subscriber clean-up impacts growth.
• Stellar cost management and ambitious cost control targets.
• June quarter results indicate that the company is aggressively preparing for Jio’s entry.
• Believe that the company’s last mile connectivity is a key strategic asset.

Shares of the Mumbai-based hotel operator rose as much as 6.4 percent to Rs 132 on the back of heavy volumes.

Trading volume was 97.9 times its 20-day average, according to Bloomberg.

Nifty 11,500 strike price call option contract was among the most active option contracts on the National Stock Exchange.

The premium on the contract rose 29 percent to Rs 75. Over 48,000 shares were reduced from the open interest which stood at over 45 lakh share.

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Shares of the Delhi-based hospitality company rose as much as 1.9 percent to Rs 79.70 after it signed an agreement to develop a 90-room hotel at Vijayawada, Andhra Pradesh.

The hotel will operate under company's brand Red Fox Hotel and is expected to be operational by June 2020, Lemon Tree Hotels said in an exchange filing.

Shares of the Delhi-based power generation company fell over 7 percent to 65 pase after Axis Bank fled a case against its subsidiary Lanco Amarkantak Power in National Company Law Tribunal (NCLT), Hyderabad branch.

The matter will be taken up by the NCLT on Sep. 5, the company said in an exchange filing.

Shares of metal companies rose after base metal prices rose internationally.

A gauge of metal stocks on the National Stock Exchange - Nifty Metal index rose as much as 1.6 percent led by gains in National Aluminium Company, Tata Steel and Jindal Steel.

Indian equity benchmarks moved sharply higher led by gains in Reliance Industries, ITC, ICICI Bank and HDFC Bank.

The S&P BSE Sensex rose 0.6 percent or 219 points to 37,882 and the NSE Nifty 50 index climbed 0.51 percent or 58 points to 11,442.

All sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty Metal index's 1.4 percent gain.

Mid- and small-cap shares were also witnessing buying interest as the Nifty Midcap 100 and Nifty Smallcap 100 indexes rose 0.7 percent each.

Deepak Jasani of HDFC Securities told BloombergQuint that oil and gas sector was expected to perform well in Q1 on the back of inventory gains.

Key highlights of the conversation:

• Oil and gas space was expected to give good results because of inventory gains
• GAIL India a defensive play in the oil & gas space
• GAIL India a prime beneficiary of CGD growth in India

• Indian money markets are shut today on account of Nowruz- the Parsi new year.

UBS on DLF

• Upgraded to ‘Buy’ from ‘Neutral’; raised price target to Rs 300 from Rs 235.
• Balance sheet strengthening going unnoticed.
• Development business to be largely self-funding.
• Accounting rule change drives big jump in our FY19/20 revenue/earnings.

Ambit on Hathway Cable

• Maintained ‘Buy’ with a price target of Rs 30.
• Subscriber clean-up impacts growth.
• Stellar cost management and ambitious cost control targets.
• June quarter results indicate that the company is aggressively preparing for Jio’s entry.
• Believe that the company’s last mile connectivity is a key strategic asset.

UBS on Shankara Building

• Maintained ‘Buy’ with a price target of Rs 2,150.
• June quarter review: Impressive top line growth, but yet to deliver similar earnings growth.
• Heavy rains to impact current quarter’s performance.
• Like Shankara as it is leading home improvement retailer; no organised competitors.

Goldman Sachs on Bandhan Bank

• Downgraded to ‘Neutral’ from ‘Buy’; price target unchanged at Rs 710.
• Downgrade post significant outperformance.
• Fundamentals remain solid but valuation races ahead.
• Bandhan can potentially deliver compounded annual growth rate of 34 percent in earnings over FY18-23.
• Balanced risk-reward at the current valuation.

Who's Meeting Whom

• Dixon Technology to meet Invesco Mutual Fund, SBI Mutual Fund and other investors on Aug. 17.
• Mahindra Lifespace Developers to meet Anand Rathi and other investors on Aug. 17.
• Deep Industries to meet investors on Aug. 17.
• Khadim India to meet investors on Aug. 17.

Insider Trades

• Chambal Fertilisers & Chemicals promoter acquired 24,000 shares on Aug. 14.
• Cosmo Films promote acquired 20,000 shares from Aug. 13-14.
• Srikalahasthi Pipes promoters acquired 16,000 shares from Aug. 13-14.
• Laurus Labs promoter acquired 7 lakh shares from Aug. 10-13.

(As reported on Aug. 16)

• Nifty August futures closed trading at 11,410.9, with a premium of 25.9 points versus 28.3 points.
• August series-Nifty open interest (OI) up 1 percent and Bank Nifty OI down 5 percent.
• India VIX ended at 13.6, up 2.7 percent.
• Max OI for August series call at 11,500 strike price call option, OI at 45.4 lakh shares, up 8 percent.
• Max OI for August series put at 11,000 strike price put option, OI at 48.1 lakh shares, down 6 percent.

• Gati clarifies that Allcargo Logistics buyout plan has not been finalised.
• Lemontree Hotels signs agreement for 90 room property at Vijayavada.
• Ion Exchange signs EPC contract worth Rs 438.84 crore from Vedanta arm.
• Cosmo Film launches CPP metalized film for laminate structures.
• Persistent Systems partners with Three Phase Electric to develop internet of things (IoT) solutions.
• Axiata relinquishes its right as a shareholder of Idea Cellular.
• TCS signs new agreement for digital transformation with Scotland based improvement service.
• Tree House Education & Accessories enters into agreement to sell fixed assets for Rs 26 crore.
• AstraZeneca Pharma receives Form 45 permission for Lynparza drug.
• Jet Airways to announce April-June quarter earnings on Aug. 27.
• Supreme Court holds return of Rs 2,000 crore bank guarantee to Reliance Communications.

• Former Prime Minister Atal Bihari Vajpayee passes away at 93
• Vajpayee on India’s economy, public sector, and globalisation
• SBI dampens Nifty 50’s best earnings season in three quarters
• China-U.S. to resume low-level talks in bid to resolve trade war
• El-Erian, BlackRock flag Turkey risk as U.S. eyes sanctions
• Trump pushes China for better deal with trade talks set to resume
• The billionaires and the guru: How a family burned through $2 billion
• With 4% inflation target in sight, MPC voted for a second rate hike
• LIC deal likely to close in 3 months: IDBI Bank’s B Sriram
• Banks are eyeing $1.5 trillion in credit card secrets

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India was little changed at 11,437.

Asian stocks traded mixed Friday after an easing in trade tensions between China and the U.S and positive results from Walmart spurred gains in American shares. The dollar held on to declines and Treasuries were little changed.

Japanese shares rose, while futures signaled gains for when Hong Kong and China markets open, after all major U.S. stock benchmarks climbed.

Currencies

• The yen slid 0.1 percent to 111 per dollar.
• The offshore yuan was at 6.8684 per dollar after rising more than 1 percent.
• The Bloomberg Dollar Spot Index declined 0.2 percent.
• The euro held at $1.1374.

Commodities

• The Bloomberg Commodities Index gained 1 percent.
• West Texas Intermediate crude slid 0.2 percent to $65.36 a barrel.
• Gold was steady at $1,173.97 an ounce.