Sensex, Nifty Recovery Tapers Off As Economy Awaits Stimulus

Indian equity benchmarks closed with marginal gains as businesses awaited measures from the government to spur growth.

The S&P BSE Sensex rose as much as 0.14 percent to 37,402.49 and the NSE Nifty 50 gained 0.10 percent to 11,153.90. The broader markets represented by the NSE Nifty 500 Index closed 0.10 percent higher. The benchmarks pared gains in the final hour sell-off, led by losses in auto stocks.

The markets were fueled with positive sentiment over the past few days on account of Finance Minister Nirmala Sitharaman meeting various industry leaders, said Sharmila Joshi, an independent investment advisor, in a conversation with BloombergQuint. However, these gains may taper off if the talks don’t materialise, Joshi said.

The market breadth was tilted in favour of buyers. Around 963 stocks had advanced and 835 stocks declined.

However, six of the 11 sectoral gauges declined, led by 0.83 percent fall in NSE Nifty PSU Index. NSE Nifty Pharma Index was the top sectoral gainer, up 0.74 percent.

Shares of the cigarette maker has advanced over 57.7 percent in the last seven sessions— its biggest winning streak since March.

The shares rose as much as 9.5 percent to Rs 1.088.70 in today’s trade. "The volume growth could be in the range of 8-9 percent for financial year 2020," said KK Modi, President, Godfrey Phillips, in an interview to BloombergQuint, adding that 17 percent seen in June quarter could be a one-off uptick.

The trading volume was more than 10 times the 20-day average for this time of the day, Bloomberg data showed.

Shares of the cash-strapped lender rose 14.2 percent to Rs 52.45 each.

Banks have agreed on a resolution plan that includes conversion of debt to equity and issuance of non-convertible debentures, according to an Economic Times report citing unidentified sources.

The stock has fallen 92 percent in the past 12 months compared to 1 percent fall in the Sensex.

Nifty’s 11,100 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 on Thursday jumped 37.15 percent to Rs 85.65. Over 49,000 shares were added to the open interest which stood at over 13.99 lakh shares.

Indian equity benchmarks traded at intraday highs, paced by gains in drugmakers.

The S&P BSE Sensex rose as much as 0.89 percent to 37,687.05 and the NSE Nifty 50 rose as much as 0.81 percent to 11,137.80. The broader markets represented by the NSE Nifty 500 Index rose as much as 0.77 percent.

“Markets are showing an uptick on account of better global cues and optimism over industry body leaders meeting Finance Minister Nirmala Sitharaman since last week,” said Sharmila Joshi, an independent investment advisor, in a conversation with BloombergQuint. However, the gains may taper off if the talks don’t materialise, Joshi said.

Joshi suggested a staggered buying approach in consumer staples and IT stocks in the current macro-economic scenario. “Hindustan Unilever Limited, ITC, Dabur and HCL Technologies are my preferred bets.”

The market breadth was tilted in favour of buyers. Ten of the 11 sectoral gauges advanced, led by 1.63 percent gain in NSE Nifty Pharma Index. NSE Nifty PSU Index was the only sectoral loser, down 0.62 percent.

Shares of the industrial components maker surged as much as 9.6 percent, its biggest intraday jump in five months, to Rs 28.65 each.

The Hyderabad-based company said received multiple orders aggregating Rs 538 crore across its business verticals, according to an exchange filing. This included railway orders to the tune of Rs 66 crore, the filing said.

The stock traded 6.1 times its estimated earnings per share for the current year, Bloomberg data showed.

The housing finance company’s $350-million 2020 notes fell 0.2 cents to 90.7 cents, according to prices compiled by Bloomberg. The bonds declined for the fifth day, their longest losing streak since late July.

NSE Nifty Pharma was the top sectoral gainer among the 11 gauges compiled by National Stock Exchange. Sun Pharma, Cipla and Dr. Reddy’s Labs were among the top gainers on Nifty Index.

Shares of the contraceptives maker surged as much as 9.1 percent to Rs 139.30 apiece—the highest in two weeks.

This came after Cupid Ltd. received an order worth Rs 14 crore from United Nations Population Fund for supplying male condoms to Uganda, according to an exchange filing.

To be sure, the stock has declined 31 percent in the past 12 months compared to a 1.3 percent fall in the Sensex, Bloomberg data showed.

The Nifty Index may hit the level of 11,185 during the intraday trade. That’s according Brijesh Bhatia, Research Head, Dealmoney Securities Pvt.

However, this must be the target only if 11,100-level is breached, Bhatia said. “Also, one should have the stop loss fixed at 11,050.”

Shares of the world’s largest coconut oil maker rose 2.4 percent intraday to Rs 401.75 to hit an all-time high of Rs 401.75 each.

The stock advanced 7.6 percent in the past 12 months compared with a 1 percent fall in Sensex. The relative strength index on the stock was above 70, indicating it may be overbought.

Reserve Bank of India Governor Shaktikanta Das addressed a Federation of Indian Chambers of Commerce & Industry event in Mumbai.

Here are the key highlights from the speech:

• RBI has taken a number of steps to inject the impulses to improve growth
• Important to look at issues of financial stability
• Lower than expected growth in major economies is a major issue facing global financial stability.
• Four specific sectors could create headwinds for financial stability: credit market, financial markets, external issues and payments.
• Real test of performance and stability for public sector banks will be their ability to access the capital market, rather than look at the government for support.

Watch the full speech here:

Indian equity benchmarks held on to their opening gains in forenoon trade. Sun Pharma was among the top performers after it struck a deal with China System Holdings to sell generics in China.

The S&P BSE Sensex rose as much as 0.80 percent to 37,651.25 and the NSE Nifty 50 rose as much as 0.75 percent to 11,130.10. The broader markets represented by the NSE Nifty 500 Index rose as much as 0.72 percent.

The Nifty Index may hit the level of 11,185 during the intraday trade. That’s according Brijesh Bhatia, Research Head, Dealmoney Securities Pvt. “Also, one should have the stop loss fixed at 11,050.”

The market breadth was tilted in favour of buyers. Nine of the 11 sectoral gauges advanced, led by 1.04 percent gain in NSE Nifty Realty Index. NSE Nifty Metal Index was the top sectoral loser, down 0.35 percent.

Shares of drug maker rose as much as 4.7 percent to Rs 434.20 apiece.

Sun Pharma and China Medical System Holdings entered into a licensing agreement for generic products to develop and commercialise seven generic products in mainland China, according to its exchange notification.

Sun Pharma’s stock trades at 21 times its estimated earnings per share for the year ahead, according to Bloomberg data.

Spandana Sphoorty Financial made its stock market debut at Rs 814 each, 4.9 percent lower than its IPO price in BSE .

The microfinance lender’s Rs 1,201 crore initial public offering was subscribed 1.05 times on the final day of bidding. The category reserved for qualified institutional buyers was subscribed 3.10 times, non-institutional investors 56 percent and retail individual investors 9 percent, according exchange data.

The stock hit an intraday low of Rs 691 thereafter.

Shares of the state-run lender fell for the fourth session in a row after it declined 4.2 percent intraday to Rs 36.60 each.

Anti-corruption bureau registered a fresh case in the loan fraud worth over Rs 350 crore in Jammu & Kashmir Bank on Friday and conducted searches at different places in Bengaluru.

The stock has declined 36 percent in the past 12 months compared with a 1 percent fall in the Sensex.

Shares of the cafe-chain operator was locked in upper circuit after it rose as much as 5 percent to Rs 65.80 each.

The Bengaluru-based company has restarted talks to sell stake to Coca-Cola, according to an Economic Times report citing unnamed sources. However, Coca-Cola’s spokesperson refused to comment on the development, the report said.

Besides, Coffee Day said its total debt (currently at Rs 4.970 crore) reduce by Rs 2,400 crore post Global Village Tech Park deal, according to its exchange filing.

The trading volume was 110 times the 20-day average for this time of the day, Bloomberg data showed.

Indian equity benchmarks opened higher, mirroring the gains in Asian peers.

The S&P BSE Sensex rose as much as 0.62 percent to 37,577 and the NSE Nifty 50 rose as much as 0.59 percent to 11,113.05. The broader markets represented by the NSE Nifty 500 Index rose as much as 0.58 percent.

The market breadth was tilted in favour of buyers. About 969 stocks advanced and 477 shares advanced on National Stock Exchange.

All 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Realty Index’s 1.38 percent gain.

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.1 percent to Rs 71.15 against the greenback.

August Futures

• Nifty futures closed at 11,064.6, premium of 16.8 points versus discount of 1.2 points.
• Nifty futures OI up 4.5 percent, adds 7.7 lakh shares in OI.
• Bank Nifty futures closed at 28,260, premium of 43.5 points versus discount of 25 points.
• Bank Nifty futures OI up 1 percent, adds 13,000 shares in open interest.

Options

Nifty PCR at 1.20 versus 1.19 (across all series)

Nifty Weekly Expiry 22-Aug

• Max OI on call side at 11,100 (13.4 lakh shares)
• Max OI on put side at 10,900 (18 lakh shares)
• Max OI addition seen in 10,900P (+8.4 lakh shares), 11,000P (+7.5 lakh shares), 11,100C (+5.4 lakh shares)

Nifty Monthly Expiry 29 -Aug

• Max OI on call side at 11,000 (24.8 lakh shares)
• Max OI on put side at 11,000 (38.8 lakh shares)

Stocks in Ban

• DHFL

• Ujjivan Financial Services: Unit Ujjivan Small Finance Bank filed DRHP with SEBI for proposed initial public offering, comprising fresh issue of equity shares aggregating to Rs 1,200 crore.
• Sun Pharma and China Medical System Holdings entered into a licensing agreement for generic products to develop and commercialise seven generic products in mainland China.
• Bosch: VK Viswanathan resigned from post of Chairman and Non-Executive Director with effect from Aug. 23 as part of succession planning.
• J&K Bank: Anti-corruption bureau registered a fresh case in the loan fraud worth over Rs 350 crore in Jammu & Kashmir Bank on Friday and conducted searches at different places in Bengaluru. (PTI)
• DHFL stated that it is not in a position release quarterly results in time due to full time engagement of accounts and finance teams in various non-routine audits and the due diligence by various parties. Company to ensure submitting the quarterly results by Sept. 14.
• Himatsingka Seide clarified that concerned authorities in Karnataka have audited company’s manufacturing facilities and have not found any non-compliance with regulations. All wage related and statutory requirements have been duly acknowledged by the Labour Department.
• Amtek Auto: The National Company Law Appellate Tribunal declined to extend resolution period in the company’s insolvency case. NCLAT stated that since 270 days have already passed, National Company Law Tribunal should pass orders on liquidation.
• DCM: Crisil downgraded bank loan facilities worth Rs 375.88 crore to ‘CRISIL D’ (Default) from ‘CRISIL BB+’, due to delays in repaying the interest and principal obligation on the term loan.
• NACL Industries said that a new facility is being built at the Srikakulam site to meet the expected growth in demand for technicals as well as intermediates and at Ethakota Plant manufacturing of new product "SMASH” has commenced.
• Kridhan Infra arm secured orders worth Rs 145 crore for various works at Hyderabad International Airport.
• Simplex Infra: CARE Ratings downgraded long term short loan facilities worth Rs 1195 crore to ‘BBB’ from ‘A-’, with outlook remaining Negative.
• Info Edge increased its stake in Shopkirana to 25.36 percent for Rs 47 crore.
• BEML: Order Book position at Rs 8,917 crore on June 30.
• TVS Motors to invest $3.2 million in U.S.-based Predictronics Corporation, which specialises in providing end-to-end predictive maintenance analytics solutions.
• Cupid bagged Rs 14 crore order from Uganda for supply of male condoms
• Coffee Day Enterprises says total debt of group at Rs 4970 crore. Debt of group will reduce by Rs 2400 crore post Global Village Tech Park deal. The company expected to have a comfortable position to service the reduced debt obligations.

Stocks in Asia gained along with U.S. futures early Monday as traders kicked off a busy week for economic data and awaited commentary from the Federal Reserve Chief Jerome Powell.

Shares in Tokyo, Seoul and Sydney were higher and S&P 500 contracts rose. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded flat at 11,062 as of 8:20 a.m.