Last-Hour Selloff Drag Sensex, Nifty Lower For Fourth Day

Indian equity benchmarks witnessed a sharp fall in the last hour, extending their declines for the fourth straight trading sessions.

The S&P BSE Sensex, which rose 186 points during the day, closed down nearly 50 points, or 0.13 percent, at 37,982.74. The NSE Nifty 50 swung to a drop 0.13 percent from a gain of as much as 0.46 percent. The broader market represented by the NSE Nifty 500 Index closed 0.15 percent lower.

The markets are neither showing signs to make any fresh investments nor to make any fresh exits after the correction, according to IIFL’s Senior Technical Analyst Hadrien Mendonca.

“There are no signs to enter the market after a huge fall. It is also too late to be a fresh seller,” Mendonca told BloombergQuint in an interaction, adding that he would remain cautious at present and let the selloff playout.

Mendonca said that 11,300 is the crucial level to watch out for in Nifty. “There may see another round of selling if the index falls below 11,300.”

The market breadth, however, was tilted in favour of buyers. About 899 stocks advanced and 860 shares declined on National Stock Exchange.

Seven out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty PSU Bank Index’s 3.1 percent fall. On the flipside, the NSE Nifty Realty Index was the top sectoral gainer, up 0.99 percent.

Kotak Mahindra Bank

• Stock rose as much as 3.9 percent to Rs 1,512.
• The lender’s June quarter profit rises but misses estimates
• The scrip is the best performer on Sensex and Nifty.

VA Tech Wabag

• Stock rose as much as 8.6 percent to Rs 317.
• The secured an order worth Rs 1,187 crore from Bihar Urban Infrastructure Development Corporation.

Can Fin Homes

• Stock rose as much as 5.4 percent to Rs 395.40.
• Trading volume was three times its 20-day average.

Arvind

• Stock rose as much as 3.9 percent to Rs 61.60.
• Fresh longs were seen with high OI of 25 percent.

Indian equity benchmarks turned volatile ahead of close.

The S&P BSE Sensex, which rose 186 points, fell 132 points to 37,898 as of 3 p.m.. The NSE Nifty 50 swung to a drop of as much as 0.38 percent from a gain of as much as 0.46 percent.

The market breadth was tilted in favour of sellers. About 885 stocks declined and 854 shares advanced on National Stock Exchange.

India needs to tax overseas investors differently than the nation’s super rich, according to fund manager Samir Arora, as higher taxes in the budget have triggered the worst foreign fund outflows in nine months.

While the budget in itself would have been welcomed, the tax part was unnecessary and is leading to unintended consequences, Arora of Helios Capital, told BloombergQuint in an interview.

Read the full story and watch the full interaction here.

• Aramco said to concerned about debt in proposed structure
• RIL is exploring sale of up to 25 percent stake in refinery unit.
• RIL said to work on alternatives for talks with Aramco.
• RIL, Aramco talks could resume with a compromise.

Source: People familiar with the matter told Bloomberg

Shares of Reliance Industries erased gains and fell as much as 1.2 percent to Rs 1,227.

Indian Overseas Bank (Q1, YoY)

• Stock rose as much as 2.1 percent to Rs 11.95.
• Net loss of Rs 342.08 crore verssus net loss of 919.44 crore
• Net interest income up 7 percent to Rs 1,288.46 crore.
• Provisions fall 74 percent to Rs 1,157.82 crore (QoQ).
• Gross NPA at 22.53 percent versus 25.64 percent (QoQ).
• Net NPA at 11.04 percent versus 10.81 percent (QoQ).

HT Media (Q1, YoY)

• Stock rose as much as 5.5 percent to Rs 27.70.
• Net loss at Rs 155.3 crore versus net profit of Rs 1.24 crore
• Revenue down 0.1 percent to Rs 540.21 crore
• Net loss at Rs 155.3 crore versus net profit of Rs 1.24 crore
• Ebitda up 35 percent to Rs 40.97 crore
• Margin at 7.6 percent versus 5.6 percent.

SKF India (Q1, YoY)

• Stock fell as much as 2.3 percent to Rs 1,856.
• Revenue up 2.9 percent to Rs 77,683 crore.
• Net Profit down 4 percent to Rs 7,794 crore.
• Ebitda flat at Rs 11,602 crore.
• Margin at 14.9 percent versus 15.4 percent.

Kajaria Ceramics (Q1, YoY)

• Stock fell as much as 3.4 percent to Rs 504.85.
• Net profit up 12 percent to Rs 51 crore.
• Revenue up 7 percent to Rs 600 crore.
• Margin at 15.1 percent versus 14.7 percent
• Ebitda up 9 percent to Rs 106 crore.

HDFC Life (Q1, YoY)

• Stock rose as much as 2.2 percent to Rs 501.60
• Total Premium up 29 percent to 6,536 crore.
• Net profit up 12 percent to 425 crore.
• New Business Premium up 47 percent to 3,926 crore.
• Value of new business up 104 percent to 509 crore.
• New business margin at 29.80 percent versus 24.2 percent.
• 13-month persistency at 88 percent versus 87 percent.
• 61-month persistency at 54 percent versus 50 percent.

Indian equity benchmarks were at day’s high.

The S&P BSE Sensex rose as much as 0.38 percent to 38,174.67 as of 2 p.m. and the NSE Nifty 50 rose as much as 0.36 percent to Rs 11,387. The broader market index represented by the NSE Nifty 500 Index rose as much as 0.25 percent.

The market breadth was tilted in favour of buyers. About 930 stocks advanced and 794 shares declined on National Stock Exchange.

Shares of Kotak Mahindra Bank extended gains and rose as much as 3.9 percent to Rs 1,512 after the lender announced its June quarter results.

Key Earnings Highlights (Q1, YoY)

• Net interest income up 23 percent to Rs 3,173 crore.
• Net profit up 33 percent to Rs 1,360 crore but misses estimate.
• NPAs, margin remains stable.
• MSMEs contribute Rs 100 crore to total slippages of Rs 750 crore.
• Loan growth at 18 percent. (YoY).
• Loan growth in CV/CE segment at 1 percent. (QoQ)
• Management says growth will come mainly from consumer lending.

Here’s what analysts had to say about Kotak Mahindra Bank after the results announcement.

Europe’s stocks trailed Asia higher, as the earnings flood continued.

Indian equity benchmarks traded with minor gains after a topsy-turvy start.

The S&P BSE Sensex rose 50 points or 0.12 percent to 38,078 as of 1 p.m. and the NSE Nifty 50 rose 0.1 percent to 11,358.90. The broader market index represented by the NSE Nifty 500 Index rose 0.1 percent.

Seven out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty PSU Bank Index’s 1.6 percent fall. On the flipside, the NSE Nifty Realty Index was the top sectoral gainer, up 1.2 percent.

Seven out of 11 sectoral gauges compiled by NSE traded lower, led by the Nifty Financial Service Index’s 0.78 percent fall. On the flipside, the NSE Nifty Realty Index was the top sectoral gainer, up 1.2 percent.

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

Shares of NBCC rose as much as 3.2 percent to Rs 52.35 after Supreme Court pronounced its verdict on Amrapali Project.

Supreme Court ordered money laundering probe against Amrapali and appointed NBCC to complete projects undertaken by the company.

Highlights from Supreme Court’s verdict:

• Supreme Court says Amrapali's RERA registration will be cancelled
• Orders money laundering case to be registered against Amrapali CMD & directors
• Asks Enforcement Directorate to conduct the probe
• Apex court says homebuyers money has been diverted

Shares of Jyothy Labs rose as much as 2.4 percent to Rs 161 after the company announced its June quarter results.

Key earnings highlights (Q1, YoY)

• Revenue up 2.2 percent to Rs 422.53 crore.
• Net profit up 11 percent to Rs 39.21 crore.
• Ebitda up 16 percent to Rs 65.56 crore.
• Margin at 15.5 percent versus 13.7 percent.

Indian equity benchmarks were subdued after a volatile trade in the open.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 38,067 and 11,355.15 as of 11 a.m. The broader market index represented by the NSE Nifty 500 Index also traded little changed.

Shares of Infosys halted their three-day losing streak. The stock rose as much as 2.5 percent to hit an all-time high at Rs 804.25.

The Relative Strength Index was above 70, indicating that the stock may be overbought, Bloomberg data showed. The stock advanced 18 percent in the past 12 months compared to a 3.8 percent gain in the Sensex.

TVS Motor (Q1, YoY)

• Stock fell as much as 5 percent to Rs 360.80.
• Revenue up 7.2 percent to Rs 4,468.6 crore.
• Net profit down 2.9 percent to Rs 142.3 crore.
• Ebitda up 10.8 percent to Rs 355.8 crore.
• Margin widens to 8 percent.
• Depreciation up 28 percent to Rs 119.4 crore and finance cost up 62 percent at Rs 29.1 crore.

Coromandel International (Q1, YoY)

• Stock fell as much as 5.1 percent to Rs 360.10
• Revenue down 15.7 percent at Rs 2,130.7 crore.
• Net profit down 30.8 percent at Rs 62.4 crore.
• Ebitda down 8.7 percent at Rs 195.3 crore.
• Margin widen to 9.2 percent.

United Spirits (Q1, YoY)

• Stock fell as much as 3.2 percent to Rs 580.10.
• Revenue up 7.2 percent to Rs 2433.1 crore.
• Net profit up 37.2 percent to Rs 202.1 crore.
• Ebitda up 52.2 percent to Rs 490.5 crore.
• Margin widens to 20.2 percent.

Just Dial (Q1, YoY)

• Stock rose as much as 3.5 percent to Rs 751.
• Revenue up 13.6 percent to Rs 240.2 crore.
• Net profit up 48.8 percent to Rs 57.3 crore.
• Ebitda up 12 percent to Rs 64.3 crore.
• Margin narrows to 26.8 percent.
• Other income up 3.8 times to Rs 31.1 crore.

Kirloskar Ferrous (Q1, YoY)

• Stock rose as much as 4.1 percent to Rs 83.30.
• Revenue down 2.9 percent to Rs 482 crore.
• Net profit up 75.2 percent to Rs 18.4 crore.
• Ebitda up 30.3 percent to Rs 45.1 crore.
• Margins widens to 9.4 percent.
• Other income down 18 percent at Rs 103.5 crore.

Allsec Technologies (Q1, QoQ)

• Stock rose as much as 5 percent to Rs 319.50.
• Revenue up 1.7 percent to Rs 67.4 crore.
• Net profit at Rs 11.9 crore.
• EBIT flat at Rs 13.2 crore.
• Margin widens to 19.6 percent.
• Provision for impairment of goodwill at Rs 12.5 crore in base quarter.

Can Fin Homes (Q1, YoY)

• Stock rose as much as 3.1 percent to Rs 387.25.
• Net interest income up 16.9 percent to Rs 147.9 crore.
• Net profit up 9.4 percent to Rs 80.1 crore.

Mastek (Q1, QoQ)

• Stock fell as much as 10.6 percent to Rs 411.
• Revenue down 7.3 percent to Rs 247.5 crore.
• Net profit down 11.7 percent to Rs 24.2 crore.
• EBIT down 12 percent to Rs 26.3 crore.
• Margin narrows to 10.6 percent.

Aptech (Q1, QoQ)

• Stock fell as much as 2.4 percent to Rs 115.05.
• Revenue down 18.5 percent to Rs 51.6 crore.
• Net profit down 34 percent to Rs 3.1 crore.
• EBIT down 42.9 percent at Rs 3.2 crore.
• Margin narrows to 6.2 percent.

Shares of Blue Star resumed declines after a one-day breather.

The stock fell as much as 1.5 percent to Rs 736.80. the scrip declined for seven trading sessions in the eight.

The company won air conditioning and tunnel ventilation system order worth Rs 253 crore from Mumbai Metro Rail Corporation, according to its stock exchange filing.

Nifty’s 11,400 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract fell 4.4 percent to Rs 33.80. Over 6.23 lakh shares were added to the open interest which stood at over 35.65 lakh shares.

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

Indian equity benchmarks were volatile after the gains Infosys Ltd. and Kotak Mahindra Bank Ltd. were offset by losses in HDFC twins.

The S&P BSE Sensex, which opened 102 points or 0.28 percent higher fell as much as 114 points or 0.3 percent. The NSE Nifty 50, which opened 0.23 percent higher, fell as much as 0.27 percent.

The market breadth was tilted in favour of buyers. About 935 stocks advanced and 635 shares declined on National Stock Exchange.

The markets are neither showing signs to make fresh investments nor to be a fresh seller after the correction, according to IIFL’s Senior Technical Analyst Hadrien Mendonca.

“There are no signs to enter the market after a huge fall. It is also too late to be a fresh seller,” Mendonca told BloombergQuint in an interaction, adding that he would remain cautious at present and let the selloff playout.

Mendonca said that 11,300 is the crucial level to watch out for in Nifty. “ There may see another round of selling if the index falls below 11,300.”

Indian benchmark bond yields, which opened marginally higher, fell one basis point intraday to 6.4 percent.

Sovereign bonds may focus on the Rs 9,800-crore state bond sale today after a sharp selloff in the market in the last session. The yield on the 10-year note climbed six basis points to close at 6.42 percent after the RBI Governor said further easing will be dependent on incoming data. For today, dealers see it trading between 6.40-6.45 percent in the day.

Shares of VA Tech Wabag rose as much as 5.9 percent to Rs 309.

The secured an order worth Rs 1,187 crore from Bihar Urban Infrastructure Development Corporation under the National Mission for Clean Ganga Scheme to develop Sewage Treatment Plants, according to its stock exchange filing.

Of the shares traded, 43 percent were at the ask price and 27 percent were at the bid, Bloomberg data showed.

Shares of Kotak Mahindra Bank were the top performer on Sensex and Nifty after the lender announced its June quarter results.

Key Earnings Highlights (Q1, YoY)

• Net interest income up 23 percent to Rs 3,173 crore.
• Net profit up 33 percent to Rs 1,360 crore but misses estimate.
• NPAs, margin remains stable.
• MSMEs contribute Rs 100 crore to total slippages of Rs 750 crore.
• Loan growth at 18 percent. (YoY).
• Loan growth in CV/CE segment at 1 percent. (QoQ)
• Management says growth will come mainly from consumer lending.

Here’s what analysts had to say about Kotak Mahindra Bank after the results announcement.

Indian equity benchmarks fluctuated between gains and losses in the opening trade after declining for three consecutive trading sessions.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 38,064 and 11,358 respectively as of 9:18 a.m. The broader market index represented by the NSE Nifty 500 Index rose 0.12 percent.

The market breadth was tilted in favour of buyers. About 757 stocks advanced and 627 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 0.6 percent gain. On the flipside, the NSE Nifty Media Index was the top sectoral loser, down 0.3 percent.

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.15 percent to 69.02 against the greenback.

Asian indexes are edging higher however the closely tracked South Korean won remains little changed. Dealers see the pair in a range of 68.70-69.20 a dollar in the day.

Indian equity benchmarks are set for a tepid start.

The S&P BSE Sensex rose 0.24 percent to 38,117 during the pre-market and the NSE Nifty 50 flucuated between gains and losses to trade 0.17 percent higher at 11,364.

Futures

• Nifty July futures closed at 11,360, premium of 14 points.
• Nifty futures open interest across series down 4 percent, sheds 7.3 lakh shares in open interest.
• Bank Nifty July futures closed at 29,389.6, premium of 104 points.
• Bank Nifty futures open interest across series down 7 percent, sheds 1.2 lakh shares in open interest.
• Nifty Rollover at 35 percent, Nifty Bank Rollover at 33 percent.

Options

• Nifty PCR at 1.00 versus 1.04 (across all series).

Nifty Monthly Expiry 25-July

• Max Open Interest on call side at 11,600 (32.5 lakh shares)
• Max Open Interest on put side at 11,300 (38 lakh shares)
• Max Open Interest addition seen in 11,400C (+22 lakh shares), 11,300P (+7.6 lakh shares)
• Open Interest shedding seen in 11400P (-7 lakh shares), 11500P (-4.7 lakh shares)

Stocks In F&O Ban

In Ban:

• DHFL
• Dish TV*
• IDBI Bank
• Reliance Infrastructure

Out Of Ban:

• Reliance Capital

*New in ban

• Arvind, Birlasoft, Engineers India, Hindustan Zinc, IDBI Bank, Kajaria Ceramics, MCX, Oracle Financial Services, Raymond— F&O contracts for new expiry months will not be issued. No contracts shall be available for this companies with effect from Sept. 27.
• Jain Irrigation Systems to move out of short term ASM Framework.
• DB Realty price band revised to 5 percent.

Earnings Reaction To Watch

Kotak Mahindra Bank (Q1, YoY)

• Net interest income up 23 percent to Rs 3,173 crore.
• Net profit up 33 percent to Rs 1,360 crore but misses estimate.
• NPAs, margin remains stable.
• MSMEs contribute Rs 100 crore to total slippages of Rs 750 crore.
• Loan growth at 18 percent. (YoY).
• Loan growth in CV/CE segment at 1 percent. (QoQ)
• Management says growth will come mainly from consumer lending.

TVS Motor (Q1, YoY)

• Revenue up 7.2 percent to Rs 4,468.6 crore.
• Net profit down 2.9 percent to Rs 142.3 crore.
• Ebitda up 10.8 percent to Rs 355.8 crore.
• Margin widens to 8 percent.
• Depreciation up 28 percent to Rs 119.4 crore and finance cost up 62 percent at Rs 29.1 crore.

Coromandel International (Q1, YoY)

• Revenue down 15.7 percent at Rs 2,130.7 crore.
• Net profit down 30.8 percent at Rs 62.4 crore.
• Ebitda down 8.7 percent at Rs 195.3 crore.
• Margin widen to 9.2 percent.

United Spirits (Q1, YoY)

• Revenue up 7.2 percent to Rs 2433.1 crore.
• Net profit up 37.2 percent to Rs 202.1 crore.
• Ebitda up 52.2 percent to Rs 490.5 crore.
• Margin widens to 20.2 percent.

Just Dial (Q1, YoY)

• Revenue up 13.6 percent to Rs 240.2 crore.
• Net profit up 48.8 percent to Rs 57.3 crore.
• Ebitda up 12 percent to Rs 64.3 crore.
• Margin narrows to 26.8 percent.
• Other income up 3.8 times to Rs 31.1 crore.

Kirloskar Ferrous (Q1, YoY)

• Revenue down 2.9 percent to Rs 482 crore.
• Net profit up 75.2 percent to Rs 18.4 crore.
• Ebitda up 30.3 percent to Rs 45.1 crore.
• Margins widens to 9.4 percent.
• Other income down 18 percent at Rs 103.5 crore.

Allsec Technologies (Q1, QoQ)

• Revenue up 1.7 percent to Rs 67.4 crore.
• Net profit at Rs 11.9 crore.
• EBIT flat at Rs 13.2 crore.
• Margin widens to 19.6 percent.
• Provision for impairment of goodwill at Rs 12.5 crore in base quarter.

Can Fin Homes (Q1, YoY)

• Net interest income up 16.9 percent to Rs 147.9 crore.
• Net profit up 9.4 percent to Rs 80.1 crore.

Mastek (Q1, QoQ)

• Revenue down 7.3 percent to Rs 247.5 crore.
• Net profit down 11.7 percent to Rs 24.2 crore.
• EBIT down 12 percent to Rs 26.3 crore.
• Margin narrows to 10.6 percent.

Aptech (Q1, QoQ)

• Revenue down 18.5 percent to Rs 51.6 crore.
• Net profit down 34 percent to Rs 3.1 crore.
• EBIT down 42.9 percent at Rs 3.2 crore.
• Margin narrows to 6.2 percent.

Nifty Earnings To Watch

• Zee Entertainment Enterprises
• Larsen & Toubro
• Hindustan Unilever

Other Earnings To Watch

• NIIT Technologies
• Torrent Pharmaceuticals
• Bayer Cropscience
• CRISIL
• DCM Shriram
• Everest Industries
• HDFC Life Insurance Company
• HT Media
• JK Paper
• Jyothy Laboratories
• Kajaria Ceramics
• Linde India
• Mahindra & Mahindra Financial Services
• Mahindra EPC Irrigation
• Oriental Hotels
• Poddar Pigments
• Ponni Sugars (Erode)
• Praj Industries
• Rushil Decor
• Saven Technologies
• SBI Life Insurance Company
• Schaeffler India
• Shanthi Gears
• SKF India
• Sundaram Clayton
• Elantas Beck India
• GE Power India Limited
• Indian Overseas Bank

• DHFL: NSE suspended trading in company’s eight NCDs with effect from July 31. Exchange stated that the reason for the suspension is redemption. Also, its joint auditors have listed several qualifications and disclaimers to the company’s annual financial statement and said its ability to continue as going concern is in “significant doubt”.
• Vadilal Industries: Rajesh Gandhi resigned as the chairman of the company with effect from July 22. Vijay Shah to be appointed in his place.
• TVS Motor Singapore arm to invest $7 million in Scienaptic Systems.
• BSE signed MoU with Shanghai Stock Exchange to facilitate maintenance of orderly securities markets in both India and China.
• MTNL: Fire broke out in company’s office in Mumbai.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.44 percent to 11,401 as of 8:15 a.m.

Asian stocks were modestly higher Tuesday as investors braced for a busy week of U.S. corporate earnings and potential developments in trade negotiations.

Shares in Tokyo outperformed, while equities also rose in Sydney and Seoul. Hong Kong and Shanghai opened little changed. U.S. futures saw slight gains.

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