Investors Hold Big Bets As Sensex, Nifty Notch Least Gains In Three Days

Indian equity benchmarks extended gains for the third consecutive trading session.

The benchmarks indices closed marginally higher after a topsy-turvy trade as gains in IndusInd Bank Ltd. and ITC Ltd. were offset by losses in Infosys Ltd. and Tata Consultancy Services Ltd.

The S&P BSE Sensex closed 0.06 percent or 23 points higher at 39,839.25 and the NSE Nifty 50 ended at 11,916.75, up 0.05 percent. The broader market index represented by the NSE Nifty 500 Index closed 0.13 percent higher.

The market breadth was tilted in favour of buyers. About 956 stocks advanced and 771 shares declined on National Stock Exchange.

Seven out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty PSU Bank Index’s 1.72 percent gain. On the flipside, the NSE Nifty Pharma Index was the top sectoral loser, down 0.12 percent.

Here are the key highlights from the conversation with Market Expert Anand Tandon:

• Budget is more of expense management rather than revenue management
• Don’t think Budget will change revenue triggers in the corporates.
• PSU Banks are looking good with a short-to-medium term.
• Global demand is not looking robust.

The mid-cap index, which was trading at a significant premium to the Nifty in January 2018, is now converging into the similar valuations of Nifty, according to Emkay Investment Managers’ Fund Manager Sachin Shah.

“The valuations now have become very reasonable and the mid- and small-cap stocks could outperform Nifty in the next two-to-three years,” Shah told BloombergQuint in an interaction.

The Nifty is expected to trade in a range of 11,450-11,950 until budget, Independent Investment Advisor Sharmila Joshi said.

“The markets are moving in a divergent view with regards to macro indicators. need to let the market reaction come in post budget and then take it further," Joshi told BloombergQuint in an interaction.

IndusInd Bank

• Stock rose as much as 4.2 percent to Rs 1,476.
• Stock rose ahead of its merger with Bharat Financial, will be effective from tomorrow.

Aster DM Healthcare

• Stock rose as much as 5.3 percent to Rs 131.70.
• Brokerage firm HSBC expects stock to reach Rs 205, implying a potential upside of 64 percent form the current market price.

PNC Infratech

• Stock rose as much as 7 percent to hit an all-time high at Rs 219.40.
• Trading volume was six times its 20-day average.

Just Dial

• Stock rose as much as 3.4 percent to Rs 790.90.
• Fresh longs seen with high OI of 40.33 percent.

Indian equity benchmarks are headed for a volatile close.

The S&P BSE Sensex and the NSE Nifty 50 fluctuated between gains and losses to trade little changed at 39,833 and 11,915 as of 3 p.m. The broader market index represented by the NSE Nifty 500 Index rose 0.1 percent.

The market breadth was tilted in favour of buyers. About 945 stocks advanced and 768 shares declined on National Stock Exchange.

Shares of DLF extended gains for the seventh consecutive trading session and are set for their longest gaining streak since February 2015. The stock rose as much as 1.1 percent to Rs 194.70.

The stock traded at 22 times its estimated forward earnings per share for the coming year, according to Bloomberg data.

Shares of Steel Strips Wheels fluctuated between gains and losses to trade 0.1 percent higher at Rs 784.

The company has bagged additional firm exports orders for 80,000 wheels for EU Caravan Trailer Market, according to its stock exchange filing.

The stock fell 0.5 percent in the past five days and declined 1.5 percent in the past 30 days, according to Bloomberg data.

Shares of Indiabulls Housing Finance rose as much as 8.4 percent, the most since June 20, to Rs 696.55.

The housing finance company will buy back a total of Rs 2,705 crore of its outstanding non-convertible debentures and Masala bonds, according to its statement.

The stock was the best performer on Nifty. The stock declined 39 percent in the past 12 months compared to a 13 percent gain in the Sensex, according to Bloomberg data.

European shares opened marginally higher as investors digested the European Union’s picks to lead its most important institutions, while the U.S. said talks with China are headed in the right direction.

Indian equity benchmarks continued to trade higher.

The S&P BSE Sensex rose 0.17 percent to 39,890 as of 2 p.m and the NSE Nifty 50 rose 0.18 percent to 11,932. The broader market index represented by the NSE Nifty 500 rose 0.2 percent.

The market breadth was tilted in favour of buyers About 938 stocks advanced and 747 stocks declined on National Stock Exchange.

Shares of Excel Crop Care rose as much as 6.1 percent to Rs 3,150.

The Gujarat Pollution Control Board had ordered closure of manufacturing operations of its Bhavnagar Plant, according to its stock exchange filing.

Trading volume was more than seven times its 20-day average, Bloomberg data showed. The stock gained 5 percent in the past five days and rose 0.2 percent in the past 30 days.

Shares of Eris Lifesciences rose as much as 2.6 percent to Rs 518.90.

The company’s plans to repurchase 1.26 percent of the total paid-up equity at Rs 575, aggregating to Rs 100 crore, according to its stock exchange filing.

The stock snapped its two-day losing streak. Of the shares traded , 34 percent were at the ask price and 50 percent were at the bid, according to Bloomberg data.

About 10 lakh shares of Tata Power changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

Indian equity benchmarks recovered marginally after fluctuating between gains and losses.

The S&P BSE Sensex rose 63 points or 0.16 percent to 39,875 as of 1 p.m. and the NSE Nifty 50 traded at 11,925, up 0.12 percent. The broader market index represented by the NSE Nifty 500 Index rose 0.15 percent.

• Godrej Consumer says soft demand seen across some geographies.
• First quarter’s volume growth in India close to mid-single digits.
• Godrej Africa, U.S. & Middle East had low single-digit constant currency sales growth.

Source: Exchange filing

• The Supreme Court ruling clears way for NCLT verdict on Bhushan Power sale to JSW Steel.
• The top court has stayed a lower court order that asked India’s National Company Law Tribunal to hear Bhushan Power’s directors on JSW Steel’s resolution plan.

Source: Bloomberg

The Nifty is expected to touch 12,200-12,300 in the near-term, according to Angel Broking’s Sameet Chavan.

“The Nifty, which was struggling around 11,650 last week, has witnessed a gradual recovery. The 50-share gauge could cross 12,000 in few days with 11,600 as a support zone,” Chavan told BloombergQuint in an interaction.

The steel prices are not expected to increase in the next three-to-four months until we see growth in China economy.

That’s according to Go India Advisors’ Managing Partner Rakesh Arora. “The global steel prices have started to correct despite iron ore prices going up. They are not expected to rise until we start to see China economy recovering,” Arora told BloombergQuint in an interaction.

Watch the full conversation here:

Indian equity benchmarks continued to trade little changed as gains in Larsen & Toubro Ltd. and IndusInd Bank Ltd. were offset by losses in ICICI Bank Ltd. and ITC Ltd.

Both the S&P BSE Sensex and the NSE Nifty 50 traded unchanged at 39,833 and 11,912 respectively as of noon. The broader market index represented by the SNE Nifty 500 Index rose 0.1 percent.

Six out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Media Index’s 0.76 percent gain. On the flipside, the NSE Nifty Pharma Index was the top sectoral loser, down 0.49 percent.

Seven out of 11 sectoral gauges compiled by National Stock Exchange traded higher, led by the NSE Nifty PSU Bank Index’s 0.84 percent gain. On the flipside, the NSE Nifty Pharma Index was the worst sectoral performer, down 0.59 percent.

Shares of Tata Communications fell as much as 5.1 percent, the most since Jan 25, to Rs 451.

The company’s Managing Director and Chief Executive Officer Vinod Kumar resigned with effect from July 5.

The Relative Strength Index was 29, indicating that the stock may be oversold, according to Bloomberg data. Trading volume as 3.6 times its 30-day average.

Shares of HDFC Bank fluctuated between gains and losses to trade 0.1 percent higher at 2,497. The stock rose 0.33 percent intraday to hit an all-time high at Rs 2,503.

The private lender gained in six trading sessions out of the last eight. The scrip traded at 26 times its estimated earnings per share for the coming year, according to Bloomberg data.

The shares returned 18.3 percent so far this year and advanced 21.3 percent in the past 12 months.

The mid- and small-cap stocks are unable to comeback to the levels they were at as the earnings growth in not kicking in due to slowdown in the economy, Axis Mutual Fund’s Head of Equities Jinesh Gopani

“The direction from the government to unleash the animal spirits will be critical to see a the sentiments changing in the market,” Gopani told BloombergQuint in an interaction.

Watch the full conversation here:

Indian equity benchmarks continued to witness a seesawed movement to trade little changed.

The S&P BSE Sensex traded at 39,833 and the NSE Nifty 50 traded around 11,910.

The market breadth was tilted in favour of buyers. About 910 stocks advanced and 707 shares declined on National Stock Exchange

The Nikkei India Services Business Activity Index fell to 49.6 last month from 50.2 in May, according to a statement by research firm IHS Markit, which compiles the index. A reading below 50 indicates contraction in activity, while a number above it signals expansion.

The Nikkei India Composite PMI Output Index also fell to 50.8 in June from 51.7 in the previous month.

The NSE Nifty Pharma Index comprising of 10 pharma firms fell 0.72 percent, led by the declines in Aurobindo Pharma Ltd. and Dr. Reddy’s Laboratories Ltd. On the flipside, Piramal Enterprises Ltd. was the top sectoral gainer.

Nifty’s 12,000 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the weekly contract which is set to expire this Thursday fell 15.6 percent to Rs 11.90. Over 8.57 lakh shares were added to the open interest which stood at over 33.45 lakh shares.

About 10 lakh shares of ITC changed hands in a block deal on National Stock Exchange, Bloomberg data showed. Buyers and sellers were not known immediately.

Indian equity benchmarks continued to fluctuate between gains and losses.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 39,790 and 11,903 respectively. The broader market index represented by the NSE Nifty 500 Index also continued to trade flat.

Kalpataru Power was in focus as the stock rose as much as 3.7 percent after the company’s board approved acquiring 19.94 percent stake in Shree Subham Logistics for Rs 64.66 crore.

Shares of Kalpataru Power Transmission rose as much as 3.7 percent to Rs 551.40.

The company’s board approved acquiring 19.94 percent stake in Shree Subham Logistics for Rs 64.66 crore. With this acquisition the company holds 100 percent stake in the target company.

Trading volume was more than 20 times its 20day average, Bloomberg data showed. Of the shares traded, 37 percent were at the ask price and 44 percent were at the bid.

• Bharti Airtel: About 30 lakh shares changed hands in a block deal.
• Eros International: About 12.8 lakh shares changed hands in a block deal.

Buyers and sellers were not known immediately.
Source: Bloomberg

Shares of the retail-store chain rose 3.3 percent to Rs 508.95.

Aditya Birla Sun Life MF increased stake holding to 7.01 percent from 5.01 percent in the company. according to its disclosure on stock exchanges.

Trading volume was more than 130 times its 20-day average, according to Bloomberg data. The stock traded at 35 ties its estimated earnings per share for the coming year.

Shares of Graphite India fell as much as 3.7 percent, the most since June 21, to Rs 316.55.

The company received a nod from Karnataka State Government to close Bengaluru plant. The production has been closed since Feb 21. On April 3, the company’s board approved a proposal to permanently close operations in the Bengaluru plant.

The Relative Strength Index was below 30, indicating that the stock may be oversold, according to Bloomberg data.

Indian equity benchmarks fluctuated in the opening trade after gains in Axis Bank and Asian Paints were offset by losses in HDFC and Tata Consultancy Services.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 39,785 and 11,900 respectively as of 9:17 a.m. The broader market index represented by the NSE Nifty 500 Index traded flat.

The market breadth was tilted in favour of sellers. About 715 stocks declined and 699 shares advanced on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty FMCG Index’s 0.28 percent decline. On the flipside, the NSE Nifty Realty Index was the top sectoral gainer, up 0.33 percent.

The Indian rupee extended gains for the eighth consecutive trading session and are poised for their longest gaining streak since February 2017.

Indian equity benchmarks are set to extend gains for the third consecutive trading session.

The S&P BSE Sensex rose over 100 points to 39,923 in the pre-market trade and the NSE Nifty 50 traded near 11,950, up 0.21 percent.

In the currency market, rupee extended gains for the eighth consecutive trading session and are poised for their longest gaining streak since February 2017. The home currency appreciated as much as 0.2 percent to 68.79 against the U.S. dollar.

July Futures

• Nifty futures closed at 11,942, premium of 32 points versus 38 points.
• Nifty futures OI down 3 percent, sheds 4.8 lakh shares in open interest.
• Bank Nifty futures closed at 31,403.9, premium of 120.6 points versus 124 points.
• Bank Nifty futures across series open interest up 1 percent, adds 21,000 shares in open interest.

Options

• Nifty PCR at 1.46 versus 1.36 (across all series)

Nifty Weekly Expiry July 4

• Max open interest on call side at 12,000 (24.8 lakh shares).
• Max open interest on put side at 11,800 (24.4 lakh share).
• Open interest addition seen in 11,850P (+8.2 lakh shares), 11,900P (+6.2 lakh shares).
• Open interest shedding seen in 11,800C (-4.3 lakh shares), 11,900C (-3.7 lakh shares).

Nifty Monthly Expiry July 25

• Max open interest on call side at 12,000 (15.2lakh shares).
• Max open interest on put side at 11,500 (16.6lakh shares).

Stocks In F&O Ban

• In Ban: DHFL

• UPL record date for share bonus at 1:2.
• Aarti Industries ex-date for demerger.
• Bharat Financial Inclusion ex-date for amalgamation.
• Mukand Engineers ,Excel Realty N Infra ,Uttam Galva Steels to move into short term ASM Framework.
• Magadh Sugar & Energy to move out of short term ASM Framework.

Bharat Financial Inclusion

• Goldman Sachs Singapore acquired 8.78 lakh shares or 0.63 percent equity at Rs 904.1 each.
• Integrated Core Strategies (Asia) acquired 18.06 lakh shares or 1.29 percent equity at Rs 898.24 each.
• Vanguard Fund sold 33.14 lakh shares or 2.36 percent equity at Rs 899.32 each.
• Ishares Core Emerging Markets Mauritius sold 9.38 lakh shares or 0.67 percent equity at Rs 899 each.

Eros International Media

• Tata Capital Financial Services sold 12.87 lakh shares or 1.35 percent equity at Rs 17.59 each.
• Anand Rathi Global Finance sold 5 lakh shares or 0.52 percent equity .

• Graphite India received nod from Karnataka State Government to close Bengaluru plant. Production has been closed since Feb 21. On April 3 Board approved a proposal to permanently close operations in the Bengaluru plant within such time as is required by the company to obtain appropriate consents, approvals, authorisations and no objections.
• L&T stated that it holds 60.06 percent stake in Mindtree. On July 2 the company had made payment to shareholders of Mindtree who had tendered their shares on Open Offer. The offer lasted from June 17 to June 28.
• Tata Sponge Iron stated in their press release that promoter Tata Steel will subscribe to its full entitlement of rights in the issue and will acquire any additional rights equity share. Tata Steel will participate in the Rights Issue to the extent of 90 percent of Rights Issue. i.e. up to Rs 1,485 crore.
• Electrosteel Castings has commenced commercial production at its Ferro Allow Plant in West Bengal with effect from July 1.
• Jammu & Kashmir Bank clarified that FIR has been registered against the firm and officials of the Bank by Anti-Corruption Bureau of Kashmir Government and the matter is being investigated. The company stated in the press release that they don’t forsee any financial impact on the Bank as the account in question had already been declared as NPA and adequate provisions as mandated under regulatory guidelines have been made against the same.
• Government of India to revive five closed fertilisers at a cost of Rs 37,971 crore to reduce import of Urea. (Press Information Bureau of India)
• Adani Power stated that Supreme Court has announced that a civil appeal by company’s arm Adani Power (Mundra) for cancellation of PPA having 1000MW Capacity with Gujarat Urja Vikas Nigam has been allowed.
• Aditya Birla Fashion & Retail: Board approved acquiring entire stake in Jaypore E-Commerce and TG Apparel for Rs 104 crore.
• Tata Communications Vinod Kumar has resigned as MD and Group CEO with effect from July 5.
• RBI Imposed Penalty of Rs 50 Lakh on UCO Bank , Allahabad Bank, Punjab National Bank each and penalty of Rs 25 lakh on Corporation Bank. Penalty Imposed Due to Non-Compliance of RBI Directives on KYC Norms and Opening of Current Accounts.
• Kalpataru Power Transmission board approved acquiring 19.94 percent stake in Shree Subham Logistics for Rs 64.66 crore. With this acquisition the company holds 100 percent stake in the target company.
• Shoppers Stop Aditya Birla Sun Life MF increased stake from 5.01 percent to 7.01 percent in the company.
• City Union Bank entered into an agreement with Star Health and Allied Insurance for distribution on insurance products on July 2.
• Adani Power: Supreme Court allowed cancellation of power purchase agreement with Gujarat Urja Vikas Nigam Ltd. having 1000 MW capacity.
• Indiabulls Ventures’ wholly owned consumer finance subsidiary disbursed 9.2 lakh loans in the first quarter of the current financial year as compared to 4.9 lakh in fourth quarter of the previous financial year and 0.6 lakh in the first quarter of 2017-18.
• Reliance Home Finance: CARE Ratings downgraded its rating for non-convertible debentures of Rs 400 crore to D primarily due to rescheduling of non-convertible debentures.

• Brent crude rose 0.77 percent to $62.88 a barrel. It closed 4.09 percent lower yesterday.
• West Texas Intermediate crude gained 0.4 percent to $56.50 a barrel after sliding Tuesday.
• Gold rose 0.8 percent to $1,429.30.

London Metal Exchange

• Copper ended lower for second day, down 1.13 percent.
• Nickel ended lower for the third day, down 2.06 percent.
• Tin ended 6.35 percent lower.
• Zinc ended 0.69 percent higher.
• Aluminium ended lower for the second day, down 0.67 percent.
• Lead ended lower for the third day, down 0.58 percent.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.16 percent to 11,962.50 as of 8:15 a.m.

Stocks in Asia were mostly lower Wednesday as investors took a breather after four weeks of gains. Japanese shares slipped with equities in Korea and Hong Kong, while those in Australia edged higher.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.