Private Lenders Help Nifty Stop Losing Streak

Indian equity benchmarks ended higher driven by a rally in private lenders—HDFC Twins and IndusInd Bank.

The S&P BSE Sensex closed 0.69 percent higher at 38,823.10 and the NSE Nifty 50 snapped its four-day losing streak and ended at 11,582.90, up 0.73 percent. The broader market index represented by the NSE Nifty 500 Index closed 0.80 percent higher.

“We expect the markets to remain choppy in the near term in the backdrop of weak domestic cues,” said Ajit Mishra, vice president (Research), Religare Broking Ltd. “Given the economic slowdown we expect the earnings season to be tepid which will lead to stock specific volatility.” Also, Mishra said consumer price inflation and index of industrial production data (scheduled tomorrow) will provide direction to the markets.

The market breadth was tilted in favour of buyers. About 912 stocks rose and 805 shares declined on National Stock Exchange. All the 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Media Index’s 3.87 percent gain.

Almost an 100-point-rally witnessed in Nifty Index today may cut short in the final hour of trade. That’s according to Sacchitanand Uttekar, deputy vice president (Research) at Tradebulls.

“Around 11615 would be an ideal level where short positions can be considered on an intraday basis,” said Uttekar in an interview to BloombergQuint. “ The stop loss should be placed around 11,642. We are also expecting the markets to swing back to 11,560 on a closing basis.”

European stocks rose as miners and oil stocks advanced, after comments from Federal Reserve Chairman Jerome Powell boosted bets for a rate cut this month.

Indian equity benchmarks retained their gains going into the final hour of trade, driven by IndusInd Bank and automakers.

The S&P BSE Sensex rose 0.71 percent to 38,833 and the NSE Nifty 50 gained 0.74 percent to 11,582.50, as of 2:20 pm.

The market breadth was in favour of buyers. Around 926 stocks advanced while 758 stocks declined. All the sectoral gauges compiled by National Stock Exchange rose. Nifty Media Index was the top gainer, up 2.75 percent.

Shares of the Anil Ambani-led group company snapped its five-day fall and gained over 16 percent intraday to Rs 53.50.

Reliance Infrastructure said its 16 lenders signed the inter-creditor agreement, according to an exchange filing. The agreement achieves standstill for 180 days and the company plans to implement resolution plan well before 180 days by monetising assets, the filing added.

The stock declined 88 percent in the past 12 months compared with a 7.1 percent gain.

Secured lenders to Essar Steel Ltd. are “not satisfied” with the appellate tribunal’s judgment removing the creditor hierarchy in settlement of claims, according to the head of India’s largest bank.

Bankers are in the process of filing an appeal at the Supreme Court to get their concerns about distribution of claims addressed, Rajnish Kumar, chairman at State Bank of India, the lead bank of the lending consortium, told BloombergQuint in an interview.

Shares of the carmaker advanced close to 2.8 percent to Rs 155.95 apiece.

Tata Motors Group said its global wholesales fell 5 percent year-on-year to 95,503 vehicles in June, according to an exchange notification. Also, passenger vehicles sales rose 1 percent to 56,657 vehicles, the notification said. Jaguar-Land Rover sales stood at 43,204 units.

The stock declined 42 percent in the past 12 months compared with a 7 percent gain in the Sensex. Shares trade at 10 times its estimated earnings per share for the coming year, Bloomberg data showed.

Shares of the drugmaker rose nearly 4.2 percent to Rs 613.40 each.

The company announced its launch of Cinacalcet Hydrochloride tablets in the U.S. market, it said in an exchange filing. The tablets had an annual sale of approximately $1.5 billion for the twelve months ending May, according to human data science firm IQVIA, it added.

The stock trades 37 percent below the Bloomberg consensus one-year target price.

The mining company’s Chairman Navin Agarwal addressed shareholders in Mumbai today.

Here are the key highlights:

• Vedanta to spend $8 billion in the medium-term to Increase output by 50 percent.
• Aim to double oil and gas contribution to India’s overall output from the present 27 percent.
• Plans to boost aluminum output by 50 percent to 3 million tonnes a year.
• Vedanta will fund its capital expenditure from internal cash flows.

Source: Bloomberg

Shares of the Reliance Industries-owned cable operator rose as much as 15.2 percent to Rs 64.60 apiece.

The company is schedlued to announce its results for the April-June period today. The trading volume was over 14 times its 20-day average for this time of the day, according to Bloomberg data.

The stock traded 13 percent below its Bloomberg consensus one-year target price.

Indian equity benchmarks extended their gains post noon, driven by advances in Zee Entertainment and JSW Steel Ltd.

The S&P BSE Sensex rose 0.58 percent to 38,781.75 and the NSE Nifty 50 gained 0.63 percent to 11,571.45, as of 12:25 pm.

The market breadth was slightly in favour of buyers. Around 844 stocks advanced while 806 stocks declined. All the sectoral gauges compiled by National Stock Exchange rose. Nifty Media Index was the top gainer, up 1.6 percent.

Shares of the telecom equipment maker rose 10.4 percent intraday to Rs 22.25 each, its highest in over a month. The company reported its first quarter results on Wednesday.

Q1 Results (YoY):

• Revenue up 23 percent to Rs 1,343 crore.
• Net profit up 139 percent to Rs 110 crore.
• Ebitda up 111 percent to Rs 189 crore.
• Margin widened to 14.1 percent from 8.2 percent.

The trading volume of the stock was almost 10 times its 20-day average, according to Bloomberg data. The shares declined 29 percent in the past 12 months compared with a 6.7 percent gain on Sensex.

There may be “negative surprises” in store for investors this earnings season. However, the pain may ease out in the next quarter on account of higher government spending. That’s according to Dhananjay Sinha, head of strategy research and chief economist, IDFC Securities.

“This quarter results may turn out to be below expectations but things will start stabilising and improve following that,” said Sinha to BloombergQuint. “Irrespective of what the challenges of the budgetare , there is some expansion on government's expenditure to the tune of 20 percent.”

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Indian equity benchmarks held their opening gains as metal stocks advanced. JSW Steel and Vedanta were among the top performers on Nifty Index.

The S&P BSE Sensex rose 0.4 percent to 38,715.10 and the NSE Nifty 50 gained 0.62 percent to 11,565, as of 10:15 am.

Ten out of 11 sectoral gauges compiled by National Stock Exchange gained. Nifty Pharma Index was the top sectoral gainer, up 1.36 percent. Nifty IT Index, the only loser, traded 0.26 percent lower.

Shares of the financial services company touched the upper circuit after advancing 10 percent to Rs 43.05—the highest in over nine months.

The company is set to sell its subsidiary Religare Finvest to TCG Advisory Services, it said in an exchange filing. It did not disclose the consideration to be received for the sale.

The stock is up 53 percent in the past five days and rose 66 percent in the past 30 days.

Shares of the explosives manufacturer rose 6.1 percent intraday to Rs 195.95 apiece.

Premier Explosives secured an order worth Rs 15 crore from Bharat Dynamics for supply of solid propellants for medium-range surface to air missiles, according to its exchange filing.

The trading volume was more than 250 times the 20-day average, Bloomberg data showed.

Shares of the country’s largest airline declined further after it fell nearly 4 percent to Rs 1,342.75 each.

InterGlobe Aviation said all related-party deals executed at arm’s length, according to a statement. Related-party deals were only 0.53 percent of the company’s 2018-19 revenue, the statement said.

The relative strength index on the stock was below 30, indicating the stock may be ‘Oversold’. The shares closed 10.7 percent lower on Wednesday.

Indian equity benchmarks opened higher, paced by gains in Vedanta Ltd. and JSW Steel.

The S&P BSE Sensex rose 0.38 percent to 38,715 and the NSE Nifty 50 gained 0.42 percent to 11,550 as of 9:20 am. The broader market index represented by the NSE Nifty 500 Index rose 0.42 percent.

The market breadth was tilted in favour of buyers. About 924 stocks advanced and 504 shares declined on National Stock Exchange.

All 11 sectoral gauges compiled by NSE gained, led by the NSE Nifty Metal Index’s 1.2 percent advance.

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.38 percent to 68.31 against the greenback.

F&O Cues

July Futures

• Nifty futures closed at 11,492, discount of 6.6 points versus 3 points.
• Nifty futures open interest unchanged.

Bank Nifty

• Bank Nifty futures closed at 30,507.7, discount of 14 points versus premium of 70.6 points.
• Bank Nifty futures across series open interest down 2 percent, sheds 33,900 shares in open interest.

Options

• Nifty PCR at 0.84 versus 0.90 (across all series).

Nifty Weekly Expiry July 11

• Max open interest on call side at 11,600 (37.1 lakh shares).
• Max open interest on put side at 11,400 (12.6 lakh shares).
• Open interest addition seen in 11,600C (+18 lakh shares), 11,500C (+8 lakh shares).
• Open interest shedding seen in 12,000C (-6 lakh shares), 11,800C (-4.8 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 (20.6 lakh shares).

Stocks In Ban

In Ban:

• DHFL
• IDBI Bank*
• Reliance Capital
• Reliance Infrastructure*

(New in ban*)

Earnings To Watch

• CCL Products
• Den Networks

Earnings Reaction To Watch

Himachal Futuristic Communications (Q1, YoY)

• Revenue up 23 percent to Rs 1,343 crore.
• Net profit up 139 percent to Rs 110 crore.
• Ebitda up 111 percent to Rs 189 crore.
• Margin widened to 14.1 percent from 8.2 percent.

GTPL Hathway (Q1, YoY)

• Revenue up 50 percent to Rs 445.5 crore.
• Net profit up 123 percent to Rs 29 crore.
• Ebitda up 37 percent to Rs 107 crore.
• Margin narrowed to 24 percent from 26.3 percent.

• InterGlobe Aviation said all related-party deals executed at arm’s length. Related-party deals were only 0.53 percent of the company’s 2018-19 revenue.
• Adani Green promoters Adani Trading created pledge on six crore shares.
• Aurobindo to launch Cinacalcet Hydrochloride Tablets in the U.S. Cinacalcet Hydrochloride tablets had an annual sale of approximately $1.5 billion for the twelve months ending May as per IQVIA.
• Cox & Kings clarified that it had not defaulted on interest payment on its NCD as the date for the payment of interest due is as of Aug. 5, and not June 30 as brought to its notice by the debenture trustee/subscriber.
• Religare Enterprises to sell Religare Finvest to TCG advisory. The consideration amount is not being disclosed in terms of the confidentiality obligations under the Term Sheet.
• Linc Pens’ first quarter sales grew 21 percent on an annual basis to Rs 100.66 crore. Company said its domestic turnover grew 29 percent backed by large corporate order while exports declined 11 percent. This is also the first time the company has crossed Rs 100 crore in sales in the first quarter.
• Ajmera realty to jointly develop commercial units at Ghatkopar.
• Saksoft Ltd. completed the acquisition of Dreamorbit.
• Piramal Enterprises approved issue of up to Rs 1,500 crore via NCDs.
• MSTC in pact with Heavy Engineering Corp for scrap disposal.
• TVS Motor Company launched a new 100cc motorcycle, TVS Sport in Sri Lanka.
• Premier Explosives secured orders worth Rs 15 crore from Bharat Dynamics for supply of solid propellants for Medium Range Surface to Air Missiles.
• V-Mart retail opened a new store in Uttar Pradesh.
• Brickwork Ratings downgraded the long-term debt instruments issued by IFCI Ltd. to ‘BWR BBB+’ with negative outlook citing decline in asset quality, stressed liquidity position, weakening earning profile among other reason
• Brickwork Ratings downgraded long term credit facilities of Mohota Industries to ‘BWR BBB’ factoring non-achievement of projections, year on year reduction in revenue and profits and decline in stock price
• Greaves cotton raised stake in unit Ampere Vehicles for Rs 22.5 crore.
• Bhageria industries said GIDC passed order in favor of company for transfer of 13.679 sq. mt land at Vapi.

• Brent crude fell 0.16 percent to $66.90 a barrel.
• West Texas Intermediate crude gained 0.2 percent to $60.54 a barrel.
• Gold was at $1,424 an ounce, up 0.4 percent.

London Metal Exchange

• Copper snapped its three-day losing streak and rose over 2 percent.
• Lead ended higher for the third consecutive trading session, up 2.13 percent.
• Tin fell for the second day in a row, closed 0.16 percent lower.
• Zinc ended its five-day fall, closed 1.61 percent higher.
• Aluminium ended higher for the third consecutive trading session, up 1.59 percent.
• Nickel ended 2.28 percent higher.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.4 percent to 11,545 as of 7:50 a.m.

Asian stocks climbed and U.S. futures ticked higher, after comments by Federal Reserve Chairman Jerome Powell cemented market bets for a rate cut this month. Treasuries rose with the yen and the dollar retreated.

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