Sensex Ends Nearly 200 Points Lower; Nifty Closes Below 11,500; IndiGo Falls Over 11%

Indian equity benchmarks ended lower, dragged by Bajaj Finance Ltd., Axis Bank Ltd. and Larsen & Toubro Ltd.

The S&P BSE Sensex closed 174 points or 0.45 percent lower at 38,557.04 and the NSE Nifty 50 Ended at 11,498.0, down 0.49 percent. The broader market index represented by the NSE Nifty 500 Index closed 0.59 percent lower.

Meanwhile, shares of InterGlobe Aviation registered their steepest decline since January 2016 after the company’s promoter Rakesh Gangwal has alleged “questionable” related-party transactions between the IndiGo’s parent and private entities of the other promoter Rahul Bhatia. (Here’s all you need to know about the promoter dispute)

The market breadth was tilted in favour of sellers. About 1138 stocks declined and 607 shares advanced on National Stock Exchange.

All the 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Realty Index’s 1.6 percent fall.

The foreign portfolio investors and alternative investment funds can opt for a corporate structure to avoid paying additional surcharge, CBDT Chairman PC Mody said.

Shares of Tata Motors fell 2.6 percent lower at Rs 151.80. The stock fell 4.3 percent intraday.

The company’s Jaguar Land Rover sales fell 9.6 percent on a yearly basis to 47,060 units, according to its stock exchange filing.

Besides, about 12 lakh shares of the automaker changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of the consumer finance company declined as much as 5 percent to Rs 3,423.

Trading volume was more than two times the 20-day average, Bloomberg data showed. The stock gained 46 percent in the past 12 months compared to a 6.5 percent gain in the Sensex.

Brookfield Asset Management Inc. is planning an offer for a majority stake in India’s debt-laden Suzlon Energy Ltd., Bloomberg reported quoting people familiar with the matter.

“The Toronto-based investment firm is working with a financial adviser for due diligence on Suzlon, the unidentified people told Bloomberg.

Shares of Suzlon Energy pared loss and jumped over 5 percent intraday to Rs 5.

SpiceJet

• Stock rose as much as 9.4 percent to Rs 128.25.
• With the current turmoil in InterGlobe Aviations, the company may benefit from operational issues.

Autoline Industries

• Stock rose as much as 11.2 percent to Rs 55.90.
• The Government of Maharashtra has approved additional industrial promotion subsidy claim of Rs 44.61 crore, according to its statement on the exchanges. Of this, the company has received Rs 14.50 crore on July 8 and will receive the remaining Rs 35.12 crore in three tranches shortly, the statement added.

Minda Industries

• Stock snapped three-day losing streak and rose as much as 11.2 percent to Rs 305.70.
• Trading volume was five times its 20-day average.

PVR

• Stock rose as much as 3.2 percent to Rs 1,713.
• Fresh longs seen with high OI of 18.4 percent.

Indian equity benchmarks are set to end lower in today’s trade.

The S&P BSE Sensex fell 121 points to 38,611 as of 3 p.m. and the NSE Nifty 50 fell 0.32 percent to 11,519. The broader market index represented by the NSE Nifty 500 fell 0.45 percent.

The market breadth was tilted in favour of sellers. About 1,108 stocks declined and 621 shares advanced on National Stock Exchange.

Shares of the oil retailers fell in today's trade as Brent crude extended its gains for the second day in a row. The Asian benchmark rose over 2 percent to Rs $65.45 per barrel.

Shares of REC Ltd. rose as much as 5.4 percent to Rs 144.75.

The company’s board approved fund raising plans of up to Rs 75,000 crore through issue of unsecured/secured non-convertible bonds/debentures through Private Placement in one or more tranches, according to its statement on the exchanges.

“The fund subject to approval of shareholders in this regard in the AGM scheduled on Aug. 29,,” the statement said, adding that the funds will be raised within a year after receiving shareholders approval.

The stock ended 14.4 percent lower yesterday after the index maintenance sub-committee of NSE Indexes decided to exclude the stock from the Nifty CPSE Index of state-run companies, according to a Bloomberg report. “The exclusion of the stock from the index will be effective from July 15,” the report added.

About 70 percent of India’s real estate developers are at risk of going out of business in the next 18 to 24 months as a liquidity crunch creates solvency issues for several projects, research firm Goldman Sachs said.

“NBFCs are avoiding fresh lending and stopping disbursal of already committed loans; with slower project completions and the resulting lower sales, developers face loss of equity value at the project level,” Goldman said, citing a discussion with Anarock Property Consultants.

Source: Bloomberg

Indian equity benchmarks continued to trade lower, led by the declines in Larsen & Toubro Ltd. and Axis Bank Ltd.

The S&P BSE Sensex fell 130 points to 38,603 as of 2 p.m. and the NSE Nifty 50 fel 0.4 percent to 11,508.

The market breadth was tilted in favour of sellers. About 1,085 stocks declined and 625 shares advanced on National Stock Exchange.

India continues to be the “shining part” of an otherwise weaker emerging market, according to Bank of America Securities’ Sanjay Mookim.

“India and Indonesia are the only larger countries among the emerging markets that still offer favourable demographics on the global basis, while China’s performance continues to worsen,” Mookim told BloombergQuint in a conversation.

Click here to watch the full interaction.

European stocks trade mixed as investors remained risk-averse after recent gains took shares to a one-year high.

Indian equity benchmarks were trading at day’s low.

The S&P BSE Sensex fell 240 points to 38,491 as of 1 p.m. and the NSE Nifty 50 traded below 11,481.15, down 0.64 percent. The broader market index represented by the NSE Nifty 500 Index fell 0.6 percent.

Investors should be extremely cautious if the Nifty falls below 11,480.

That’s according to homegrown brokerage Geojit Financial Services. “Yesterday's hammer candle formation and a close above 100-DMA should bring back positivity with limited upside potential,” the research firm said in a report.

“In such case immediate upside objectives are seen at 11660/11721/11783. On the flip side, any dips below 11480 should be treated with utmost caution,” it added.

Shares of Autoline Industries rose as much as 11.2 percent to hit a four-month high at Rs 55.90.

The company said the Government of Maharashtra has approved additional industrial promotion subsidy claim of Rs 44.61 crore, according to its statement on the exchanges. Of this, the company has received Rs 14.50 crore on July 8 and will receive the remaining Rs 35.12 crore in three tranches shortly, the statement added.

Trading volume was 15 times its 20-day average, Bloomberg data showed.

The NSE Nifty Metal Index declined 1.4 percent, led by the fall in Jindal Steel & Power Ltd. and JSW Steel Ltd. On the flipside, NMDC Ltd. was the top gainer, up 4.3 percent.

India’s benchmark bond yield erased gains and were trading at day’s low. The 10-year yield fell over four basis points to 6.54 percent.

Indian equity benchmarks struggle to recover, weighed by Tata Consultancy Services Ltd. after the company announced its quarterly results yesterday.

The S&P BSE Sensex fell 120 points or 0.3 percent lower at 38,595 as of noon and the NSE Nifty 50 traded near 11,500, down 0.39 percent.

Besides, shares of InterGlobe Aviation Ltd. recovered from a 20-percent drop. The stock traded 11.6 percent lower at Rs 1,384.

Lenders to Dewan Housing Finance Corporation Ltd., who are finalising a resolution plan to save the beleaguered housing financier, are mulling to take over its operations, two people in the know said.

Click here to find out what the resolution plan may look like.

Shares of GTPL Hathway traded 2.4 percent higher at Rs 57.70 ahead of quarterly results announcement. The stock rose 17 percent intraday.

Trading volume was almost 40 times its 20-day average, Bloomberg data showed. The stock rose 5.4 percent in the past five days and fell 14 percent in the past 30 days.

Six out of 11 sectoral gauges compiled by National Stock Exchange traded lower, led by the NSE Nifty Metal Index’s 0.96 percent decline. On the flipside, the NSE Nifty Media Index was the top sectoral gainer, up 0.45 percent.

Indian equity benchmarks continued to trade on a volatile note.

The S&P BSE Sensex fell 76 points to 38,654 as of 11 a.m. and the NSE Nifty 50 fell 0.2 percent to 11,531. The broader market index represented by the NSE Nifty 500 Index fell 0.2 percent.

The market breadth was tilted in favour of sellers. About 877 stocks declined and 745 shares advanced on National Stock Exchange.

About 22 lakh shares of Petronet LNG changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of the telecom equipment maker pared opening gains and fell as much as 0.5 percent to Rs 19.75 ahead of its results announcement.

Besides, the company received a purchase order worth Rs 186.9 crore from BSNL for setting up of optical transmission backbone network for Armed forces. The project shall be completed within 10 months.

Of the shares traded, 49 percent were at the ask price and 48 percent were at the bid, according to Bloomberg data.

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 tomorrow fell 22.39 percent to Rs 20.80. Over 10.38 lakh shares were added to the open interest which stood at over 29.51 lakh shares.

Indian equity benchmarks traded marginally higher after fluctuating between gains and losses in the opening trade.

The S&P BSE Sensex rose 70 points to 38,798 as of 10:05 a.m. and the NSE Nifty 50 rose 0.13 percent to 11,570. The broader market index represented by the NSE Nifty 500 Index traded little changed.

Shares of InterGlobe Aviation were in focus as they fell as much as 19.3 percent, after the company’s promoter Rakesh Gangwal has alleged “questionable” related-party transactions between the IndiGo’s parent and private entities of the other promoter Rahul Bhatia.

Besides, shares of SpiceJet rose as much as 9.4 percent, the most in over a month, to Rs 128.25.

Shares of Manpasand Beverages hit their lower circuit of 5 percent at Rs 38.85.

This after Mehra Goel & Co. resigned as the statutory auditor of the company.

The stock fell 56.3 percent so far this year and slumped 74.2 percent over the past 12 months.

Shares of the auto component maker rose as much as 6.5 percent, the most since May 20, to Rs 292.60.

The stock snapped its three-day losing streak, its longest since June 19. The scrip traded at 20 times its estimated earnings per share for the coming year, according to Bloomberg data.

Trading volume was more than five times its 20-day average, Bloomberg data showed. The stock fell 6.4 percent in the past five days and declined 13 percent in the past 30 days.

Shares of the county’s largest software exporter fell as much as 2.9 percent to Rs 2,071.30 after the company announced its quarterly results for the three months ended June.

Key Earnings Highlights (Q1, QoQ)

• Revenue up 0.4 percent to Rs 38,172 crore.
• Net profit up 0.1 percent to Rs 8,131 crore.
• Ebit down 3 percent to Rs 9,220 crore.
• Margin narrowed to 24.2 percent versus 25.1 percent.

Here’s what analysts had to say about TCS post results announcement.

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

The S&P BSE Sensex rose 30 points or 0.1 percent to 38,760 as of 9:20 a.m. after falling 0.3 percent intraday and the NSE Nifty 50 traded little changed at 11,573 after it fell as much as 0.34 percent. The broader market index represented by the NSE Nifty 500 Index rose 0.2 percent.

The market breadth was tilted in favour of buyers. The market breadth was tilted in favour of buyers. About 865 stocks advanced and 578 shares declined on National Stock Exchange.

Eight out of 11 sectoral gauges compiled by NSE gained, led by the NSE Nifty Media Index’s 0.9 percent advance. On the flipside, the NSE Nifty IT Index was the top sectoral loser, down 0.65 percent.

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.14 percent to 68.64 against the greenback.

Indian equity benchmarks are set to open mixed.

The S&P BSE Sensex rose 130 points or 0.4 percent to 38,870 during the pre-market trade while the NSE Nifty 50 fell 0.16 percent to 11,539.

In the currency market, the Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.14 percent to 68.64 against the greenback.

July Futures

• Nifty futures closed at 11,552, discount of 3.3 points versus premium at 7.7 points.
• Nifty futures open interest up 2.5 percent, adds 4.5 lakh shares in open interest.
• Bank Nifty futures closed at 30,639, premium of 70.6 points versus 85 points.
• Bank Nifty futures across series open interest down 4 percent, sheds 81,000 shares in open interest.

Bank Nifty

• Nifty PCR at 0.90 versus 0.88 (across all series).

Nifty Weekly Expiry 11 July

• Max open interest on call side at 12,000 (31 lakh shares).
• Max open interest on put side at 11,500 (17.2 lakh shares).
• Open interest addition seen in 11,550C (+6.7 lakh shares), 11,600C (+6 lakh shares), 11,450P (+5.8 lakh shares).
• Open interest shedding seen in 12,000P (-6.2 lakh shares), 11,900C (-5.9 lakh shares).

Nifty Monthly Expiry 25-July

• Max open interest on call side at 12,000 (31.2 lakh shares).
• Max open interest on put side at 11,300 (17.5 lakh shares).

Stocks in F&O Ban

• DHFL
• Reliance Capital.

Earnings To Watch

• GTPL Hathway
• Himachal Futuristic Communications

Earnings Reaction To Watch

Tata Consultancy Services (Q1, QoQ)

• Revenues up 0.4 percent at Rs 38,172 crore.
• Net profit up 0.1 percent at Rs 8,131 crore.
• Ebit down 3 percent at Rs 9,220 crore.
• Margin narrowed to 24.2 percent versus 25.1 percent.

• InterGlobe Aviation said the company received a letter dated July 8 from Rakesh Gangwal, informing the company that he has written a letter to the SEBI seeking regulatory intervention on his alleged grievances regarding questionable transactions and governance violations. In the meantime, SEBI has asked the company to give its response to this letter by July 19.
• Mehra Goel & Co. resigned as the statutory auditor of Manpasand Beverages.
• ICRA downgraded KRBL’s rating on long term bank facilities from ‘AA’ (Stable) to ‘AA-’ and also placed it under “ratings under watch with negative implications” after The Enforcement Directorate attached assets worth Rs 15 crore of the company in connection with 2008 Embraer deal case on July 4.
• Dr. Reddy’s Andhra Pradesh units two observations under Form 483 from the U.S.FDA – Bloomberg News
• SBI cut MCLR by five basis points across all tenors.
• Mawana Sugar said Uttar Pradesh Co-operative Bank Ltd. has sanctioned soft loan of Rs 116.40 crore to the company to clear the outstanding dues of the farmers for the crushing season 2018-19. The said loan has been disbursed and utilized for payment to sugarcane farmers.
• Adani Ports to consider raising up to $700 million via dollar bonds at its board meet on July 12.
• NLC India commissions 63 MW of the 100 MW solar power plant at Tamil Nadu with effect from July 7.
• BHEL and Container Corp to form Joint Working Group to establish rail-based logistics terminal at Haridwar.
• Autoline Industries said the government of Maharashtra has approved additional Industrial Promotion Subsidy IPS claim of Rs 44.61 crores. Of this, the company has received Rs 14.50 crores on July 8 and will receive the balance Rs 35.12 crore in three tranches shortly.
• Tasty Bite Eatables to consider fund raising on July 12, 2019 by issuing equity shares on preferential basis.
• Himachal Futuristic Communications received a purchase order worth Rs 186.9 crore from BSNL for setting up of optical transmission backbone network for Armed forces. The project shall be completed within 10 months.
• VST Tillers said Uttar Pradesh Co-operative Bank Ltd. has sanctioned soft loan of Rs 116.40 crore to the company to clear the outstanding dues of the farmers for the crushing season 2018-19. The said loan has been disbursed and utilised for payment to sugarcane farmers.

• Brent Crude rose 0.49 percent to $64.80 a barrel.
• West Texas Intermediate crude gained 1.4 percent to $58.66 a barrel.
• Gold was at $1,394.31 an ounce, down 0.2 percent.

London Metal Exchange

• Copper ended lower for the third consecutive trading session, down 1.19 percent.
• Lead ended higher for the second consecutive trading session, up 2.02 percent.
• Tin halted a four-day gaining streak, closed 1.49 percent lower.
• Zinc ended lower for the fifth consecutive trading session, closed 0.63 percent lower.
• Aluminium ended higher for the second consecutive trading session, ended 0.66 percent higher.
• Nickel ended a two-day gaining streak, closed 0.16 percent lower.

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 little changed at 11,559 as of 8:10 a.m.

Stocks in Asia were mixed Wednesday after a subdued session on Wall Street, as investors awaited clues on policy from Federal Reserve Chairman Jerome Powell.

Stocks posted modest gains in Hong Kong, China and South Korea, and slipped in Japan. Futures on the S&P 500 Index were little changed.

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