Sensex, Nifty Clock Longest Gaining Streak In Nearly Two Weeks

Indian equity benchmarks extended gains for the third consecutive trading session, registering their longest gaining streak in nearly two weeks.

The S&P BSE Sensex closed 0.22 percent higher at 39,215.64. and the NSE Nifty 50 closed at 11,687.50, up 0.21 percent. The broader market index represented by the NSE Nifty 500 Index closed 0.14 percent higher.

The market breadth, however, was tilted in favour of sellers. About 897 stocks declined and 849 shares advanced on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty PSU Bank Index’s 1.1 percent gain. On the flipside, the NSE Nifty Auto Index was the top sectoral loser, down 1.02 percent.

About 19.4 lakh shares of yes bank changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

Besides, the company is scheduled to announce its quarterly results today.

Here’s the preview of analysts consensus estimates tracked by Bloomberg

Yes Bank Earnings Estimates (Q1 YoY)

• Net interest income seen 11.6 percent higher at Rs 2,477 crore.
• Net profit seen 84 percent lower at Rs 201 crore.
• PPoP seen 40 percent lower at Rs 1,452 crore.

Indian equity benchmarks are consolidating in a range, Angel Broking’s Techincal Analyst Ruchit Jain said. “11,705-11,530 are the key levels to watch out,” Jain told BloombergQuint in an interaction. “Advisable to trade in index on a breakout from the range,” he added.

MCX

• Stock rose as much as 8.4 percent to Rs 882.
• The company’s net profit jumped six times year-on-year to Rs 43.7 crore.

KNR Construction

• Stock rose as much as 7.2 percent to Rs 287.85.
• Received work order of Rs 847.34 crore for irrigation project.

InterGlobe Aviation

• Stock rose as much as 2.7 percent to Rs 1,483.95.
• The scrip extended gains for the fourth straight trading session ahead of results.

CG Power and Industrial Solutions

• Stock rose as much as 9.8 percent to Rs 19.55.
• Trading volumes were almost 2.5 times its 20-day average.

Indian equity benchmarks extended gains for the third consecutive trading session and are set for their longest gaining streak in nearly two weeks.

The S&P BSE Sensex rose 0.18 percent to 39,198 as of 3 p.m. and the NSE Nifty 50 rose 0.17 percent to 11,682. The broader market index represented by the NSE Nifty 500 Index rose 0.11 percent.

The market breadth was tilted in favour of sellers. About 885 stocks declined and 852 shares advanced on National Stock Exchange.

Shares of Edelweiss Financial Services fell as much as 12 percent to Rs 153.10. The stock extended declines for the second consecutive trading session.

Trading volume was triple its 20-day average, Bloomberg data showed. Of the shares traded, 24 percent were at the ask price and 28 percent were at the bid.

Shares of IRB Infrastructure Developers halted a five-day losing streak, their longest losing streak in over a month.

The stock rose as much as 9.9 percent, the most since May 20, to Rs 95.50.

Of the shares traded, 49 percent were at the ask price and 42 percent were at the bid, Bloomberg data showed. The scrip traded at 4.4 times its estimated earnings per share for the coming year, according to Bloomberg data.

Shares of HDFC Asset Management Company Ltd. extended gains for the second consecutive trading session and rose as much as 6.9 percent to hit an all-time high at Rs 2,127.

The company had reported its quarterly earnings for the three months ended June yesterday.

Key Earnings Highlights (Q1, YoY)

• Net profit at Rs 292 crore versus Rs 205 crore.
• Revenue at Rs 504.4 crore versus Rs 471.2 crore.

Morgan Stanley sees $25 billion of inflows if free float and budget proposals are implemented by the Government, its Head of India Equity Research and India Equity Strategist Ridham Desai said.

“The government has started to address India's free float problem and proposed changes in the recent budget. Our estimates imply inflows of $25 billion, a 146 basis points increase in India's weight in the MSCI EM index, and a 7ppt rise in India's foreign free float if all three proposals are implemented,” Desai said in a report.

Indian equity benchmarks were trading off day’s high

The S&P BSE Sensex rose 0.25 percent to 39,228 as of 2 p.m. after gaining 0.39 percent intraday and the NSE Nifty 50 rose 0.21 percent. The broader market index represented by the NSE Nifty 500 Index rose 0.14 percent.

Shares of Yes Bank was the worst performer on the benchmark indices ahead of its results announcement. The stock fell as much as 4.7 percent to Rs 99.

Meanwhile, shares of Wipro traded 0.5 percent lower at Rs 258.75 as the company is also scheduled to announce its quarterly results.

The market breadth, however, was tilted in favour of sellers. About 872 stocks declined and 846 shares advanced on National Stock Exchange.

Government Official Says

• Panel on economic capital framework recommends transfer of funds from RBI to the government in tranches.
• Funds to be transferred over a period of 3-5 years.
• Report may reflect some differences among panel members.

European stocks halted a winning streak as worries about U.S.-China trade talks tempered gains sparked by earnings at companies.

• Government may spin off units of Coal India into separate listed companies.
• The company and the coal ministry are studying a proposal by DIPAM to list four of Coal India’s biggest production units, as well as its exploration arm.
• Spinning off Coal India’s subsidiaries would also lead to greater competition in the domestic coal market and improve corporate governance.

Source: People familiar with the matter told Bloomberg

Indian equity benchmarks witnessed a rangebound trade.

The S&P BSE Sensex rose 0.27 percent to 39,234 as of 1 p.m. and the NSE Nifty 50 rose 0.23 percent to 11,689.10. The broader market index represented by the NSE Nifty 500 Index rose 0.18 percent.

Eight out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Medial Index’s 1 percent gain. On the flipside, the NSE Nifty Auto Index was the top sectoral loser, down 0.5 percent.

Shares of Dhanlakshmi Bank rose as much as 5.7 percent to Rs 19.50 after the company announce its quarterly results for the three months ended June.

Key Earnings Highlights (Q1, YoY)

• Net interest income up 11 percent to Rs 90.09 crore.
• Net profit at Rs 19.84 crore versus net loss of 44.99 crore.
• Provisions drop 85.7 percent to Rs 9.27 crore (QoQ).
• Gross NPA at 7.61 percent versus 7.47 percent (QoQ).
• Net NPA at 2.35 percent versus 2.41 percent (QoQ).

Shares of Yes Bank fell as much as 4.7 percent to Rs 99. The stock had risen 4.5 percent intraday.

About 11.5 lakh shares of the lender changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

The stock is the worst performer on Sensex and Nifty. Trading volume was more than double its 20-day average, according to Bloomberg data.

Besides, the company is scheduled to announce its quarterly results today.

Here’s the preview of analysts consensus estimates tracked by Bloomberg

Yes Bank Earnings Estimates (Q1 YoY)

• Net interest income seen 11.6 percent higher at Rs 2,477 crore.
• Net profit seen 84 percent lower at Rs 201 crore.
• PPoP seen 40 percent lower at Rs 1,452 crore.

Investors need to be thoughtful and careful in stock and sector selection.

That’s the word coming from BNP Paribas’ Asia Pacific Equity Strategist Manishi Raychaudhuri. “The market is favorable for long-term investors that are not perturbed by short-term fluctuations,” he told BloombergQUint in an interaction.

According to Raychaudhuri:

• Foreign investors are bullish on Indian equities from a long-term perspective.
• Increase in free float favorable for foreign portfolio investors.
• Higher taxation on capital gains to dampen investor sentiment in short-term.
• Market is favorable for long-term investors that are not perturbed by short term fluctuations.
• Both retail and corporate private sector banks are interesting investment targets.
• Non-banking financial companies continue to remain a risky bet.

Lenders to Jet Airways (India) Ltd. have sought a deeper review of the grounded airline’s financials after a limited forensic audit threw up a series of anomalies.

Lenders led by State Bank of India have begun preliminary discussions with EY on a deeper forensic audit of the company’s books to capture any large financial irregularities, two people in the know told BloombergQuint on condition of anonymity.

Here’s what the sources told BloombergQuint.

Indian equity benchmarks were rangebound during the noon.

The S&P BSE Sensex rose 0.3 percent to 39,243 as of noon and the NSE Nifty 50 rose 0.28 percent to 11,694.90. The broader market index represented by the NSE Nifty 500 Index rose 0.27 percent.

Ten out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Medial Index’s 1.1 percent gain. On the flipside, the NSE Nifty Auto Index was the only sectoral loser, down 0.33 percent.

Stocks saw another mixed session in Asia Wednesday, with subdued trading volumes, as continuing U.S.-China trade tensions contrast with still-solid economic data to leave investors without a dominant narrative.

• Japan’s Topix index slipped 0.2 percent.
• Futures on the S&P 500 were flat.
• South Korea’s Kospi index retreated 1 percent.
• Hong Kong’s Hang Seng lost 0.3 percent.
• The Shanghai Composite was little changed.
• Australia’s S&P/ASX 200 Index rose 0.5 percent.
• Euro Stoxx 50 futures slipped 0.1 percent.

Catch all the global markets update here.

Shares of Tata Elxsi fell 1.6 percent to Rs 801.55 after the company announced its June quarter results

Key earnings Highlights (Q1, YoY)

• Revenue down 5.3 percent to Rs 361.71 crore.
• Net Profit down 31 percent to Rs 48.79 crore.
• EBIT down 42 percent to Rs 58.09 crore.
• EBIT Margin 16.1 percent versus 26.3 percent.

Shares of Yes Bank fell as much as 3.5 percent to Rs 100.25, making it the worst performer on Sensex and Nifty. The stock had risen 4.5 percent intraday.

The company is scheduled to announce its quarterly results today.

Here’s the preview of analysts consensus estimates tracked by Bloomberg

Yes Bank Earnings Estimates (Q1 YoY)

• Net interest income seen 11.6 percent higher at Rs 2,477 crore.
• Net profit seen 84 percent lower at Rs 201 crore.
• PPoP seen 40 percent lower at Rs 1,452 crore.

Seven out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty 1.23 percent gain. On the flipside, the NSE Nifty Metal Index was the top sectoral loser, down 0.23 percent.

Indian equity benchmarks traded higher after a shaky start.

The S&P BSE Sensex rose 0.34 percent to 39,262 as of 11 a.m. and the NSE Nifty 50 rose 0.30 percent to 11,697.30. The broader market index represented by the NSE Nifty 500 Index rose 0.28 percent.

The market breadth was tilted in favour of buyers. About 958 stocks advanced and 670 shares declined on National Stock Exchange.

MCX (Q1, YoY)

• Stock rose as much as 8.4 percent to Rs 882.
• Revenue up 9.1 percent to Rs 79.5 crore.
• Net profit up six times to Rs 43.7 crore.
• Ebitda up 10.8 percent at Rs 27.7 crore.
• Margin expands to 34.8 percent.
• Other income up 2.5 times to Rs 31.4 crore.
• Exceptional loss of Rs 23.8 crore in base quarter.
• Tax as percentage PBT at 20.7 percentage.

Jay Bharat Maruti (Q1, YoY)

• Stock fell as much as 4.2 percent to Rs 181.
• Revenue down 12.5 percent to Rs 442.9 crore.
• Net profit down 41.8 percent to Rs 7.8 crore.
• Ebitda down 8 percent to Rs 39 crore.
• Margin widens to 8.8 percent.
• Other expenses down 16 percent to Rs 29.1 crore.

Agro Tech Foods (Q1, YoY)

• Stock rose as much as 1.4 percent to Rs 506.
• Revenue flat at Rs 197.7 crore
• Net profit up 6.1 percent at Rs 7 crore.

5Paisa Capital (Q1, YoY)

• Stock fell as much as 3.4 percent to Rs 249.90.
• Revenue up 2.5 times to Rs 22.9 crore.
• Net loss at Rs 0.5 crore versus net loss at Rs 6 crore.

The sharp drop in sovereign bond yields is setting the stage for lower borrowing rates, according to Credit Suisse’s Neelkanth Mishra.

“So far, the drop in sovereign yields has also not reflected fully in other bonds, and credit spreads have widened. These should also correct over time, though possibly not as rapidly. The PSU banks with excess SLR, REITs and rate sensitives are the most direct beneficiaries of lower rates, Mishra said.

Nifty’s 11,700 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 tomorrow rose 11.83 percent to Rs 21.75. Over 8.66 lakh shares were removed from the open interest which stood at over 24.66 lakh shares.

Indian equity benchmarks edged higher after a shaky start.

The S&P BSE Sensex rose 0.15 percent to 39,190 as of 10 a.m. and the NSE Nifty 50 rose 0.18 percent to 11,684. The broader market index represented by the NSE Nifty 500 Index rose 0.23 percent.

The market breadth was tilted in favour of buyers. About 990 stocks advanced and 582 shares declined on National Stock Exchange.

Shares of Strides Pharma fell as much as 8.1 percent, the most since May 13, to Rs 347.10.

The U.S. Food and Drug Administration inspectors said they found what appeared to be records awaiting shredding at Strides Pharma Science Ltd.’s manufacturing facility in Puducherry. (read the full report here)

Trading volume was almost 15 times its 20-day average, Bloomberg data showed. Trading in the company's call options totalled 1,102 contracts, compared with the average of 299 over the past 20 days. Trading in the company's put options totalled 929 contracts, compared with the average of 195 over the same period.

Shares of the wind-turbine maker extended declines for the fourth consecutive trading session. The stock fell as much as 8.60 percent to Rs 4.25.

The company, which became India’s biggest convertible-note defaulter in 2012, defaulted on the payment of bonds worth $172 million which was due on July 16.

The stock trades 84 percent below Bloomberg consensus one-year target price.

Shares of Fertilisers & Chemicals Travancore halted their five-day losing streak, their longest losing streak in nearly a month.

The stock rose as much as 13.8 percent, the most since July 3, to Rs 39.50. The scrip fell 6.1 percent in the past five trading sessions and declined 9.2 percent in the past 30 days.

Trading volume was 1.4 times its 30-day average, according to Bloomberg data.

Shares of DCB Bank fell as much as 14.2 percent, the most since November 2016, to Rs 205.30 after the company announced its quarterly results for the three months ended June.

Key Earnings Highlights (Q1, YoY)

• Net interest income rises 11.7 percent to Rs 304.7 crore.
• Net profit rises 16.7 percent to Rs 81.1 crore.
• Provisions up 22 percent at Rs 40.6 crore (QoQ)
• GNPA at 1.96 percent versus 1.84 percent (QoQ).
• NNPA at 0.81 percent versus 0.65 percent (QoQ).

Trading volume was more than 40 times its 20-day average, Bloomberg data showed. Of the shares traded, 41 percent were at the ask price and 38 percent were at the bid.

Indian equity benchmarks fluctuated between gains and losses in the opening trade.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 39,082 and 11,561.75 respectively as of 9:18 a.m. The broader market index represented by the NSE Nifty 500 Index fell as much as 0.1 percent.

The Nifty may touch 11,721-11,783 if the index achieves stability above 11,660, Geojit Financial Services said in a research report. “However, inability to float above 11,660 would dilute positivity and drag index lower,” the report added.

The market breadth was tilted in favour of sellers. About 740 stocks declined and 672 shares advanced on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Media Index’s 0.74 percent gain. On the flipside, the NSE Nifty Pharma Index was the top sectoral loser, down 0.56 percent.

The Indian rupee opened little changed at 68.69 against the U.S. dollar.

The local currency had ended 0.2 percent weaker on Tuesday at 68.71 after trade data showed exports slid nearly 10 percent in June.

In the bond market, India’s 10-year yield dropped nearly 5 basis points intraday to 6.27, the lowest since December 2016.

Indian bonds may extend a rally that has pushed yields to multi-year lows as crude oil slid after U.S. President Donald Trump threatened to place new tariffs on Chinese imports.

The benchmark 10-year bonds gained for a fifth day on Tuesday with yields falling as much as 12 basis points to 6.31 percent. Global funds have been steady buyers of Indian debt amid expectations of rate cuts and they purchased Rs 750 crore of government bonds on Tuesday.

Indian equity benchmarks are set for a tepid start.

The S&P BSE Sensex and the NSE Nifty 50 were little changed at 39,142 and 11,682 during the pre-market trade.

Futures

• Nifty futures closed at 11,657.8, discount of 4.7 points versus 8.8 points
• Nifty futures open interest down 1 percent, sheds 2.2 lakh shares in open interest
• Bank Nifty futures closed at 30,590.6, premium of 20 points versus 10.6 points
• Bank Nifty futures open interest down 3 percent, sheds 53,700 shares in open interest

Options

• Nifty PCR at 1.34 versus 1.19(across all series)

Nifty Weekly Expiry 18-July

• Max open interest on call side at 11,700 (15.9 lakh shares)
• Max open interest on put side at 11,600 (25.4 lakh shares)
• Open interest addition seen in 11,600P (+15.9 lakh shares), 11,650P (+7.5 lakh shares)
• Open interest shedding seen in 11,600C (-8.2 lakh shares)

Nifty Monthly Expiry July 25

• Max open interest on call side at 12,000 (32.2 lakh shares)
• Max open interest on put side at 11,300 (23.5 lakh shares)

Stocks In F&O Ban

• IDBI Bank
• Reliance Capital
• Reliance Infrastructure

Out Of Ban:

• DHFL

• Bhageria Industries ex-date for bonus issue at 1:1.
• Emami Realty to move into ASM Framework.
• Mukand, Tourism Finance Corporation of India to move into short term ASM Framework.
• Aarti Industries price band revised to 20 percent.
• CG Power and Industrial Solutions, NRB Industrial Bearings price band revised to 10 percent.

Nifty Earnings To Watch

• Wipro
• Yes Bank

Other Earnings To Watch

• Mindtree
• Tata Elxsi
• Aditya Birla Money
• DFM Foods
• Dhanlaxmi Bank
• Menon Bearings

Earnings Reactions To Watch

DCB Bank (Q1, YoY)

• Net interest income rises 11.7 percent to Rs 304.7 crore.
• Net profit rises 16.7 percent to Rs 81.1 crore.
• Provisions up 22 percent at Rs 40.6 crore (QoQ).
• GNPA at 1.96 percent versus 1.84 percent (QoQ).
• NNPA at 0.81 percent versus 0.65 percent (QoQ).

MCX (Q1, YoY)

• Revenue up 9.1 percent to Rs 79.5 crore.
• Net profit up six times to Rs 43.7 crore.
• Ebitda up 10.8 percent at Rs 27.7 crore.
• Margin expands to 34.8 percent.
• Other income up 2.5 times to Rs 31.4 crore.
• Exceptional loss of Rs 23.8 crore in base quarter.
• Tax as percentage PBT at 20.7 percentage.

Jay Bharat Maruti (Q1, YoY)

• Revenue down 12.5 percent to Rs 442.9 crore.
• Net profit down 41.8 percent to Rs 7.8 crore.
• Ebitda down 8 percent to Rs 39 crore.
• Margin widens to 8.8 percent.
• Other expenses down 16 percent to Rs 29.1 crore.

Agro Tech Foods (Q1, YoY)

• Revenue flat at Rs 197.7 crore
• Net profit up 6.1 percent at Rs 7 crore.

5Paisa Capital (Q1, YoY)

• Revenue up 2.5 times to Rs 22.9 crore.
• Net loss at Rs 0.5 crore versus net loss at Rs 6 crore.

• U.S. Food and Drug Administration inspectors said they found what appeared to be records awaiting shredding at Strides Pharma Science Ltd.’s manufacturing facility in Puducherry. (read the full report here)
• Suzlon Energy defaulted on the payment of bonds worth $172 million which was due on July 16.
• Bharat Heavy Electricals received a notice of termination from NMDC for the construction of raw material handling system at NMDC’s steel plant in Chhattisgarh. Company has proposed to take up the afore mentioned matter through redressal mechanism available for dispute resolution between state run companies.
• IL&FS Engineering & Construction: BSR & Associates resigned as the joint statutory auditor of the company on July 14. Audit firm stated that non-payment of audit fees and non-receipt of certain pending information and responses to audit matters led to the resignation.
• Cox & Kings defaulted in payment of interest of Rs 41 lakh on NCDs due on July 15 and defaulted in payment of commercial papers worth Rs 45 crore due on July 16.
• KNR Constructions received work order for Rs 847.34 crore from Navayuga Engineering for an irrigation project.
• Vedanta Cairn and Gas won 10 oil blocks in the second and third round auctions as a part of Open Acreage Licensing Policy of the government. (Press Release)
• DCB Bank made an offer to Abu Dhabi Commercial Bank to acquire business of certain customer’s accounts amounting to Rs 1,155 crore of deposits and Rs 997 crores of advances.
• Astron Paper & Board Mill stated in their press release two plants in its Gujarat unit will be shut down from July 16-23 due to maintenance of boiler plant.
• Tata Power’s arm sold 50 MW solar power to NTT Com-Netmagic, under the captive structure.
• KRBL: Care Ratings revised ratings from to ‘CARE A1+’ (under credit watch with negative implications) from ‘CARE A1+’. The rating agency stated that this revision is due to provisional attachment of properties by the Directorate of Enforcement of Punjab, valuing about Rs 15 crores, on July 4, in connection with the Embraer deal case.
• Vodafone Idea: Brickwork Ratings revised rating of NCDs to ‘BWR A+’ from ‘BWR AA-’, with outlook remaining negative.
• Jay Bharat Maruti: Board proposed issuing securities up to Rs 150 crore.
• Sadhav Infra Projects Q1 toll revenue up 2.3 percent to Rs 281.3 crore versus Rs 275 crore from its 10 operational SPVs.
• 5Paisa Capital: Board approved rights issue at 1:1 for Rs 80 per share aggregating to Rs 101.9 crore. Record date set at May 29.
• Punjab & Sind Bank revised MCLR across various tenors with effect from July 16. One Month MCLR at 8.45 percent and one-year MCLR at 8.7 percent, while the base rate has remained unchanged at 9.7 percent.
• Religare Enterprises RBI denied approval company’s request to appoints Ashok Mehta and Ashwani Mehta as non-executive non-independent directors.

• Brent crude halted a two-day fall, traded 0.39 percent higher at $64.60 a barrel.
• West Texas Intermediate steadied at $57.61 a barrel.
• Gold slid 0.1 percent to $1,404.96 an ounce.

London Metal Exchange

• Copper ended higher for the second consecutive trading session, closed 0.48 percent higher.
• Lead ended higher for the sixth consecutive trading session, ended 0.2 percent higher.
• Aluminium ended higher for the second day, up 0.43 percent.
• Nickel ended higher for the fifth consecutive trading session, closed 2.96 percent higher.
• Tin halted a two-day fall, ended 0.56 percent higher.
• Zinc ended higher for the fifth consecutive trading session.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.1 percent to 11,636.50 as of 7:40 a.m.

Caution returned to Asian equities on Wednesday after President Donald Trump said the U.S. could impose more tariffs on China. The dollar remained near a one-week high.

Shares in South Korea bore the brunt, and stocks were modestly lower in Japan, Hong Kong and China. Australian shares eked out gains. Futures on the S&P 500 Index were steady.

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

Source: Bloomberg