Sensex, Nifty End Higher As Infosys Powers Tech Rally

Indian equity benchmarks ended higher led by the rally in Infosys Ltd.

The S&P BSE Sensex closed 161 points or 0.48 percent higher at 38,896.71 and the NSE Nifty 50 ended at 11,588.35, up 0.31 percent. The broader market index represented by the NSE Nifty 500 Index closed 0.12 percent higher.

Infosys was the top gainer in the benchmark indices. This after it raised its revenue forecast for the full year even as higher costs led to a contraction in margin and decline in profit during June quarter. The Bengaluru-based software developer clocked its biggest jump in four year to close at record high.

The market breadth, however, was tilted in favour of sellers. About 1,193 stocks declined and 585 shares advanced on National Stock Exchange.

Seven out of 11 sectoral gauges compiled by National Stock Exchange ended lower, led by the NSE Nifty PSU Bank Index’s 2.52 percent fall. On the flipside, the NSE Nifty IT Index as the top sectoral gainer, up 2.76 percent.

Investors can buy Nifty futures at 11,550 with a target of 11,630 and a stop-loss at 11,510.

That’s the suggestion coming from KRChoksey’s Hemen Kapadia. “There is a possibility of the Nifty hitting 11,650 and crossing that level in the next two-to-three trading sessions,” Kapadia told BloombergQuint in an interaction.

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Indian equity benchmarks are set on a positive note today.

The S&P BSE Sensex rose 0.35 percent to 38,868 as of 3 p.m. and the NSE Nifty 50 rose 0.29 percent to 11,586.

The market breadth was tilted in favour of sellers. About 1,184 stocks declined and 577 shares declined on National Stock Exchange.

Meanwhile, shares of Infosys was the top performer on Sensex and Nifty. The stock rose as much as 7.2 percent to hit an all-time high at Rs 779.10.

Infosys

• Stock rose as much as 7 percent to Rs 777.40. The scrip was the best performer on Sensex and nifty
• The company raised its revenue forecast for the full year even as higher costs led to a contraction in margin and decline in profit in the quarter ended June.

Piramal Enterprises

• Stock rose as much as 6.7 percent to Rs 2,076.
• The company on a verge of of finalising capital infusion deal worth Rs 9600 crore with Soft Bank, according to ET report.

Apollo Hospitals Enterprise

• Stock rose as much as 3 percent to Rs 1,404.
• Fresh longs with high OI of 18 percent

GTPL Hathway

• Stock rose as much as 19.9 percent to Rs 92.50.
• Trading volume was almost 18 times its 20-day average.

Shares of Magma Fincorp extended declines for the fourth consecutive trading session and fell as much as 8.3 percent to Rs 98.10.

The company’s Asset Backed Finance (ABF) Business CEO Kaushik Banerjee has stepped down as the full time CEO, according to its stock exchange filing.

“Banerjee has stepped down as his health and family commitments were not permitting him to continue with full time CEO role. He shall however continue as an advisor to the ABF business on an exclusive basis,” the statement added.

The Relative Strength Index on the stock was below, 30, indicating that the stock may be overbought.

European shares traded mixed after opening higher during the trade.

Indian equity benchmarks were trading marginally higher.

The S&P BSE Sensex rose 70 points o 0.2 percent to 38,808 as of 2 p.m. and the NSE Nifty 50 rose 0.14 percent to 11,569.

The market breadth, however, was tilted in favour of sellers. About 1,168 stocks declined and 572 shares advanced on National Stock Exchange.

TRACOM Stock Brokers expect many of the sectors that have corrected to correct further for the next three-to-six months until there are any positive news that could drive earnings, its Director Parthiv Shah said.

“The broader markets and many other pockets have witnessed sharp correction and generating alpha over the indices have become more difficult for most fund managers,” Shah told BloombergQuint in an interaction.

The Nifty 50 currently is seeing a support at 11,467, according to Kiranjadhav.com’s Technical Analyst Jignesh Mehta.

“The Nifty is expected to hold above 11,467—the lowest level it reached recently. Else, it could see further downside and selling pressure,” Mehta told BloombergQUint in an interaction.

Shares of Bajaj Consumer Care rose nearly 1 percent to Rs 322 after the company announced its quarterly results for the three months ended June. The stock 3.2 percent intraday.

Key Earnings Highlights (Q1, YoY)

• Revenue up 7.5 percent to Rs 240.7 crore.
• Net profit up 8.8 percent to Rs 56.7 crore.
• Ebitda up 0.7 percent to Rs 68.6 crore.
• Margin at 28.5 percent versus 30.4 percent.

Indian equity benchmarks traded little changed and were struggling to gain momentum.

The S&P BSE Sensex and the NSE Nifty 50 traded at 38,788.50 and 11,560.20 respectively as of 1 p.m. The broader market index represented by the NSE Nifty 500 Index also traded flat.

Shares of Infosys continued to be the top performer on Sense and Nifty after it raised its revenue forecast for the full year even as higher costs led to a contraction in margin and decline in profit in the quarter ended June.

Besides, Shares of DHFL fell over 30 percent intraday after the company reported a loss of Rs 2,223 crore for the quarter ended March 2019.

Sheela Foam

• Stock fell as much as 1.5 percent to Rs 1,270.
• Trading volume was almost 120 times its 20-day average.

Stylam Industries

• Stock fell as much as 5.8 percent to Rs 600.05.
• Trading volume was almost 30 times its 20-day average.

GNA Axles

• Stock fell as much as 5.9 percent to Rs 266.35.
• Trading volume was almost 30 times its 20-day average.

GTPL Hathway

• Stock rose as much as 19.9 percent to Rs 92.50.
• Trading volume was almost 18 times its 20-day average.

The Nifty is expected to trade higher with an upside limit of 11,660, if it does not give up 11,490, according to homegrown brokerage and research firm Geojit Financial Services.

“A break of 11660 would trigger moves aiming 11721/11783. However, any dip below 11490 would induce sharp falls,” the research firm said in a report.

Asserting that the arrangement between the promoter groups has been transparent from inception at IndiGo, Rahul Bhatia group on Sunday claimed that Rakesh Gangwal always limited his financial risks and was making insidious efforts to create an unseemly controversy about corporate governance.

In a reflection of the deep differences between the two promoter groups, InterGlobe Enterprises Group has now issued three statements in less than a week seeking to clarify issues and reject the allegations by Gangwal. Gangwal has sought markets watchdog Securities and Exchange Board of India’s intervention to address the corporate governance issues at InterGlobe Aviation Ltd. -- the parent of the country's largest carrier IndiGo -- where he holds around 37 percent stake while Bhatia group has about 38 percent shareholding.

Read the full story here.
Source: PTI

Inflation measured by the Wholesale Price Index fell to 2.02 percent in June from 2.45 percent in the previous month, according to data released by the Ministry of Commerce.

A Bloomberg poll of economists had estimated the WPI inflation, which tracks changes in the price of goods before they are sold by retailers, at 2.25 percent.

Indian equity benchmarks traded little changed, erasing their opening gains.

The S&P BSE Sensex rose nearly 50 points or 0.1 percent to 38,774 as of noon and the NSE Nifty 50 traded little changed at 11,551.15.

• The government is planning to spin off the gas transmission business of GAIL India into a separate unit.
• The oil ministry is seeking approval from the cabinet for splitting the transmission business from the gas marketing operations.
• GAIL has appointed an international consultant to determine tax implications after the restructuring.

Source: Bloomberg quoting people with knowledge of the matter.

Shares of Indoco Remedies fell as much as 11.7 percent, the most since October 2018, to Rs 149.40.

The company’s Goa facility received with six observations, according to its stock exchange notification. “The Company responded to these observations with a detailed remediation plan, the implementation of which is still on-going,” it added.

The stock rose 11 percent in the past five days and gained 4.2 percent in the past 30 days. According to Bloomberg data.

India’s auto slowdown has spread to makers of parts and tyres.

The retail sales of cars, two-wheelers and trucks—measured by registrations—and factory-gate shipments have fallen year-on-year since the last Diwali festival season. They contracted even in June and production cuts haven’t brought inventory down.

Click here to find out the sector that is being impacted due to the slowdown in the auto sector.

Nine out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty PSU Bank Index’s 2.6 percent fall. On the flipside, the NSE Nifty IT Index was the top sectoral gainer, up 1.41 percent.

Indian equity benchmarks erased their opening gains, led by the declines in ICICI Bank Ltd. and ITC Ltd.

The S&P BSE Sensex and the NSE nifty 50 traded little changed at 38,750 and 11,543 as of 11 a.m. The broader market index represented by the NSE Nifty 500 Index fell 0.2 percent.

Shares of DHFL were in focus as it fell 30 percent intraday after reporting a loss of Rs 2,223 crore in the March quarter.

Shares of Future Enterprises fell as much as 10.9 percent, the most since October 2018, to Rs 30.25.

The Directorate of Revenue Intelligence arrested Future Enterprises Chief Financial Officer Dinesh Maheshwari for allegedly being the “main person responsible” for customs duty evasion to the tune of Rs 14.58 crore by the company. Maheshwari is also an executive director on the company’s board, along with Managing Director Vijay Biyani and Vice Chairman Kishore Biyani.

Trading volume was almost 18 times its 20-day average, Bloomberg data showed. The stock declined 16 percent in the past 12 months compared to a 6.4 percent gain in the Sensex.

Hathway Cable (Q1, YoY)

• Stock fell as much as 5.5 percent to Rs 23.10.
• Revenue up 17 percent to Rs 450 crore.
• Net loss narrows to Rs 10 crore.
• Other income of Rs 57 crore in current quarter.
• Ebitda up 29 percent to Rs 93 crore.
• Margin 20.7 percent versus 18.7 percent.

Karnataka Bank (Q1 YoY)

• Stock rose as much as 3.2 percent to Rs 104.80.
• Net interest income rises 5 percent to Rs 494 crore.
• Net profit rises 7 percent to Rs 175 crore.
• Provisions down 8 percent to Rs 201 crore (QoQ).
• GNPA rise to 4.55 percent (QoQ).
• NPA rise to 3.33 percent (QoQ).

TRF Ltd (Q1, YoY)

• Stock fell as much as 2.8 percent to Rs 111.75.
• Revenues up 1.5 percent to Rs 69 crore.
• Net profit of Rs 12 crore versus net loss of Rs 60 crore.
• Gain from impairment of goodwill of Rs 16.6 crore in current quarter versus loss of Rs 23.2 crore.
• Ebitda gain of Rs 4 crore versus Ebitda loss of Rs 25 crore.
• Margin expands to 5.8 percent.

Avenue Supermarts (Q1, YOY)

• Stock rose as much as 6.2 percent to Rs 1,443.90.
• Revenue up 27 percent to Rs 5,815 crore.
• Profit up 32 percent to Rs 323 crore.
• Ebitda up 41 percent to Rs 597 crore.
• Margin at 10.3 percent versus 9.2 percent.
• Added eight stores in June quarter.

The NSE Nifty Bank Index erased its opening gains and fell nearly 140 points intraday to 30,463.75. The declines were led by RBL Bank Ltd., Bank of Baroda, The Federal Bank Ltd.

Nifty’s 11,600 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 gained 0.9 percent to Rs 33.60. Over 5.7 lakh shares were added to the open interest which stood at over 23.92 lakh shares.

BEML Ltd. expects its orderbook to be at around Rs 12,000-13,000 crore in the current financial year, its Chairman and Managing Director DK Hota told BloombergQuint in an interaction.

According to Hota:

• About 87 percent of business done from BEML is against open competition.
• Orderbook currently over Rs 9,000 crore is the highest ever for the company.
• Expect Rs 1500 crore from defence and Rs 1200 crore orders from mining sector.
• Looking at orders from metro business worth Rs 8000 crore over the next five years.
• Employee cost to turnover down to 22 percent from earlier 30 percent.
• Government looking at selling its stake in BEML.
• Shareholders should get share if BEML land is sold.
• Companies still showing interest in picking up stake in BEML.
• Right now, only informal bids have come in for picking stake.
• Expect Rs 4,200 crore turnover in the current financial year.

Watch the full interaction here.

Indian equity benchmarks traded off day’s high, but managed to hold gains.

The S&P BSE Sensex rose 130 points or 0.33 percent to 38,860 as of 10 a.m. and the NSE Nifty 50 rose as much as 0.18 percent to 11,572.70.

Shares of Infosys were the top performer on Sensex and Nifty after it raised its revenue forecast for the full year even as higher costs led to a contraction in margin and decline in profit in the quarter ended June.

Shares of Bharat Heavy Electricals Ltd. fluctuated between gains and losses to trade little changed at Rs 64.80.

The state-run company won an order worth Rs 100 crore for setting up a 25 MW floating solar photovoltaic power plant on EPC basis from NTPC.

Of the shares traded 47 percent were at the ask price and 50 percent were at the bid, according to Bloomberg data. The scrip traded at 15 times its estimated earnings per share for the coming year.

Shares of Allahabad Bank fell as much as 14.4 percent, the most since November 2018, to Rs 40.35.

The PSU Bank reported a fraud of over Rs 1,774 crore by Bhushan Power and Steel Ltd.

“On the basis of Forensic Audit Investigation findings and CBI filing FIR, on suo moto basis, against the Company and its Directors, alleging diversion of funds from banking system by the Bank's borrower namely Bhushan Power and Steel Ltd., a fraud of Rs 1,774.82 core has been reported by the Bank to the Reserve Bank of India,” Allahabad Bank said in a stock exchange filing.

“The Bank has already made provisions amounting to Rs 900.20 crore against the exposure of the Bank in the company,” it added.

Shares of Dewan Housing Finance Corporation Ltd. fell as much as 30 percent to Rs 48, the lowest in over a decade.

Crisis-hit Dewan Housing Finance Corporation Ltd. said it aims to restart lending operations by August 2019 after the company reported a loss of Rs 2,223 crore for the quarter ended March 2019. The housing finance company had reported a profit of Rs 134 crore in the year-ago period and a Rs 313.60-crore profit in the quarter ended December. (More details here).

Key Earnings Highlights (Q4, YoY)

• NII up 45 percent to Rs 664.52 crore.
• Loss at Rs 2,223 crore versus net profit of Rs 134 crore
• Defaults on NCD interest payments worth Rs 48 crore.

Shares of Infosys rose as much as 5.8 percent, the most in two years, to Rs 768.70. The stock was the best performer on Sensex and Nifty.

The Bengaluru-based software developer raised its revenue forecast for the full year even as higher costs led to a contraction in margin and decline in profit in the quarter ended June.

Key Earnings Highlights (Q1, QoQ)

• Revenue up 1.2 percent to Rs 21,803 crore.
• Net profit down 6.7 percent to Rs 3802 crore.
• EBIT down 3.2 percent to Rs 4471 crore.
• Margin at 20.5 percent versus 21.4 percent.
• Increased 2019-20 revenue growth guidance range from 7.5 to 9.5 percent given earlier to 8.5-10 percent in constant currency.
• Maintained 2019-20 operating margin guidance range of 21 percent-23 percent.

Here’s what analysts had to say after the company announced its June quarter results.

Indian equity benchmarks opened higher, led by the gains in infosys Ltd.

The S&P BSE Sensex rose as much as 0.74 percent to 39,023.97 and the NSE Nifty 50 rose as much as 0.57 percent to 11,618.40. The broader market index represented by the NSE Nifty 500 Index rose as much as 0.48 percent.

The market breadth was tilted in favour of buyers. About 790 stocks advanced and 552 shares declined on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty IT Index’s 1.6 percent gain. On the flipside, the NSE Nifty Media Index was the top sectoral loser, down 0.86 percent.

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.25 percent to 68.51 against the greenback.

Indian equity benchmarks are set to open higher today.

The S&P BSE Sensex rose over 350 points or 0.67 percent to 38,994 during the pre-market trade and the NSE Nifty 50 rose 0.51 percent to 11,614.15.

In the currency market, the Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.25 percent to 68.51 against the greenback.

July Futures

• Nifty futures closed at 11,544, discount of 8 points versus 0.8 points.
• Nifty futures open interest down 3.6 percent, sheds 6.3 lakh shares in open interest.

Bank Nifty

• Bank Nifty futures closed at 30,600, discount of 1 point.
• Bank Nifty futures open interest up 2 percent, adds 34,000 shares in open interest.

Options

• Nifty PCR at 1.14 versus 1.24 (across all series).

Nifty Weekly Expiry 18-July

• Max open interest on call side at 11,600 (18.2 lakh shares).
• Max open interest on put side at 11,500 (12 lakh shares).
• Open interest addition seen in 11,600C (+7.7 lakh shares), 11,650C (+5.4 lakh shares).

Nifty Monthly Expiry 25-July

• Max open interest on call side at 12,000 (32 lakh shares).
• Max open interest on put side at 11,300 (19.8 lakh shares).

Stocks in F&O Ban

• DHFL
• IDBI Bank
• Reliance Capital
• Reliance Infra

Earnings To Watch

• Automotive Stampings
• Bajaj Consumer Care
• Tata Metaliks
• Tinplate Company of India

Earnings Reaction To Watch

Infosys (Q1 QoQ)

• Revenue up 1.2 percent to Rs 21,803 crore.
• Net profit down 6.7 percent to Rs 3802 crore.
• EBIT down 3.2 percent to Rs 4471 crore.
• Margin at 20.5 percent versus 21.4 percent.
• Increased 2019-20 revenue growth guidance range from 7.5 to 9.5 percent given earlier to 8.5-10 percent in constant currency.
• Maintained 2019-20 operating margin guidance range of 21 percent-23 percent.

Hathway Cable (Q1, YoY)

• Revenue up 17 percent to Rs 450 crore.
• Net loss narrows to Rs 10 crore.
• Other income of Rs 57 crore in current quarter.
• Ebitda up 29 percent to Rs 93 crore.
• Margin 20.7 percent versus 18.7 percent.

Karnataka Bank (Q1 YoY)

• Net interest income rises 5 percent to Rs 494 crore.
• Net profit rises 7 percent to Rs 175 crore.
• Provisions down 8 percent to Rs 201 crore (QoQ).
• GNPA rise to 4.55 percent (QoQ).
• NPA rise to 3.33 percent (QoQ).

TRF Ltd (Q1, YoY)

• Revenues up 1.5 percent to Rs 69 crore.
• Net profit of Rs 12 crore versus net loss of Rs 60 crore.
• Gain from impairment of goodwill of Rs 16.6 crore in current quarter versus loss of Rs 23.2 crore.
• Ebitda gain of Rs 4 crore versus Ebitda loss of Rs 25 crore.
• Margin expands to 5.8 percent.

Avenue Supermarts (Q1, YOY)

• Revenue up 27 percent to Rs 5,815 crore.
• Profit up 32 percent to Rs 323 crore.
• Ebitda up 41 percent to Rs 597 crore.
• Margin at 10.3 percent versus 9.2 percent.
• Added eight stores in June quarter.

DHFL (Q4, YoY)

• NII up 45 percent to Rs 664.52 crore.
• Loss at Rs 2,223 crore versus net profit of Rs 134 crore
• Defaults on NCD interest payments worth Rs 48 crore.

• Infosys approved follow-on investment of $6 million in Trifacta Inc.
• Syndicate Bank revised MCLR by five basis points across tenors.
• IGE Group deplored misinformation on corporate governance (Bloomberg New).
• Grindwell Norton formed JV with Shinagawa Refractories, Japan for tap hole clay refractory products for steel industry.
• Emami said to pick Arpwood and Credit Suisse for cement unit sale, Bloomberg reported quoting unidentified people.
• InterGlobe Aviation: With promoter spat intensifying at the country's largest airline IndiGo, markets watchdog Securities and Exchange Board of India and the Ministry of Corporate Affairs have started digging deep into allegations of governance lapses and violations that could force the government to override existing arrangements and pacts at the company, PTI reported quoting officials.
• The Directorate of Revenue Intelligence arrested Future Enterprises Chief Financial Officer Dinesh Maheshwari for allegedly being the “main person responsible” for customs duty evasion to the tune of Rs 14.58 crore by the company. Maheshwari is also an executive director on the company’s board, along with Managing Director Vijay Biyani and Vice Chairman Kishore Biyani.
• BHEL: Won an order worth Rs 100 crore for setting up a 25 MW floating solar photovoltaic power plant on EPC basis from NTPC.
• IndusInd Bank: SR Batliboi & Co. has tendered resignation as statutory auditors as RBI has barred the auditor from carrying out audits in commercial banks.

Tata Steel Q1FY20 Updates

• Market spreads for steel producers globally have been affected due to fall in steel prices and rise in iron ore prices.
• In Europe, steel industry is facing significant headwinds in terms of lower economic growth and trade flow uncertainty that is impacting steel consuming products.
• Tata Steel Europe production was impacted by planned shutdowns and unplanned outages during the quarter, while sales were affected due to sluggish demand.
• Resumption of trade talks between U.S. and China and the recent Union Budget announcements in India is expected to translate into a stronger business performance in the second half of the current financial year.

• India June Wholesale Prices Inflation data.
• India June trade balance data.
• U.S. June retail sales, due Tuesday, are expected to rise 0.2% from the prior month, which would be the slowest pace since February.
• Monetary policy decisions are due in Indonesia, South Korea and South Africa on Thursday.

Data Recap

• India June CPI rose 3.18 percent versus 3.05 percent in May.
• India May IIP rose 3.1 percent YoY; Estimated 2.9 percent.

• Brent crude resumed gains after a one-day blip, closed 0.3 percent higher at $66.72 a barrel Friday. The Asian crude benchmark fell 0.2 percent today.
• West Texas Intermediate crude fell 0.1 percent to $60.16 a barrel.
• Gold gained less than 0.1 percent to $1,416.26 an ounce.

London Metal Exchange

• Copper ended a two-day gains, closed 0.34 percent lower.
• Lead ended higher for the fifth consecutive trading session, ended 0.18 percent higher.
• Tin resumed declines after a one-day breather, closed 0.79 percent higher.
• Zinc ended higher for the third consecutive trading session, closed 0.4 percent higher.
• Aluminium ended lower for the second day, ended 0.33 percent lower.
• Nickel ended higher for the third consecutive trading session, closed 2.59 percent higher.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fluctuated between gains and losses to trade 0.18 percent higher at 11,567 as of 7:55 a.m.

Asian stocks began the week with a cautious tone as investors digested data showing Chinese economic growth slowed in the second quarter amid expectations for further policy support.

Shares in Hong Kong and Shanghai pared declines as activity data in retail and industrial production topped estimates, though indexes across the region remained lower. Futures on the S&P 500 Index were flat.

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