MARKET WRAP: Sensex up 85 pts, broader mkts underperform; DHFL up 11%

Domestic markets ended Wednesday's choppy trading session with gains. Corporate earnings kept indices volatile with buying being witnessed in select public sector banks and information technology (IT) scrips. Fresh trade war concerns between the Unites States and China also kept the markets jittery.

The benchmark S&P BSE Sensex added 85 points, or 0.22 per cent, to settle at 39,216 levels with State Bank of India, Tech Mahindra, HCL tech and IndusInd Bank being top gainers. On the contrary, YES Bank, Maruti, ONGC and NTPC were at the lower end of the spectrum. Market breadth was in favour of decline. Of the 2,650 companies traded, shares of 1,123 companies advanced and that of 1,355 declined. Mere 172 shares settled unchanged. 

The broader Nifty50 too gained 25 points, or 0.21 per cent, to close at 11,687 levels. Shares of 21 companies advances, 27 declines and 2 remain unchanged.

In the broader market, the S&P BSE MidCap ended at 14,542 levels, down 22 points, or 0.15 per cent. The S&P BSE SmallCap too ended 10 points, or 0.07 per cent lower at 13,716 levels.

Sectorally, PSU banks were the biggest gainers with the Nifty PSU Bank index closing 1.36 per cent higher. This was followed by gains in FMCG sector (up 0.81 per cent) and IT sector (up 0.53 per cent). The Nifty Auto index was the top laggard with the index settling over 1 per cent lower. 

BUZZING STOCKS

Shares of DCB Bank plunged 14 per cent to Rs 205 in Wednesday's early morning trade on the BSE after the private sector lender reported a sub-par performance in June quarter (Q1FY19) led by decline in loan growth, sequential rise in fresh slippages and non-performing assets (NPAs), and continued pressure on margin. READ MORE

Shares of HDFC Asset Management Company (AMC) hit a record high of Rs 2,129, up 7 per cent intra-day on the BSE on Wednesday, after the company reported a 42 per cent year-on-year (YoY) jump in net profit at Rs 292 crore in the June quarter of fiscal year 2019-20 (Q1FY20). The strong profit growth was led by lower expenses and higher other income, the company's financial data show. READ MORE

Click here for more buzzing stocks

GLOBAL CUES

Resurgent trade tensions, concern over the outlook for corporate America and the growing risk of a chaotic Brexit in the United Kingdom dampened appetite for equities on Wednesday.

Japan's Nikkei settled 0.31 per cent down while South Korea's Kospi ended 0.91 per cent lower.


3:38 PM IST

3:37 PM IST

3:34 PM IST The S&P BSE Sensex gained 85 points or 0.22 per cent to settle at 39,215.64 level while NSE's Nifty50 index ends at 11,688, up 25 points or 0.21 per cent.

3:31 PM IST The Narendra Modi government’s decision to tap the overseas debt market through sovereign bonds has stirred quite a debate. There has been a lot of criticism amid fears that India will pay the price that Latin American nations did, in case of any global slowdown and currency frustrations. READ MORE

3:26 PM IST The six-member panel, under former RBI Governor Jalan was appointed on December 26, 2018, to review the economic capital framework (ECF) for the Reserve Bank of India (RBI) after the finance ministry wanted the central bank to follow global best practices and transfer more surplus to the government. READ MORE Former RBI governor Bimal Jalan

3:22 PM IST MCX 856.85 +43.30 +5.32 IRB 92.00 +5.10 +5.87   SPICEJET 141.95 +10.20 +7.74   CGPOWER 19.55 +1.75 +9.83   DHFL 55.95 +5.35 +10.57  

3:11 PM IST -- MCA believes IBC makes it clear that finance creditors come first and operational come second --  IL&FS has total 94,000 crore of total debt

3:01 PM IST

2:50 PM IST -- Lenders working on mechanism to get bondholders & MFs on board for resolution   -- IBA met SEBI officials to discuss bond holders mechanism on June 12 Alert: IBA is Indian Banks' Association

2:47 PM IST DCB Bank has maintained its long-term growth path. Focus on risk adjusted growth, steady margins and improvement in Cost-to-income (CI) ratio are expected to lead to an improvement in earnings at 23.5% CAGR, return ratio of ~1.1% and RoE of ~15% by FY21E. Therefore, we reiterate our positive stance and maintain our target price of Rs 250 valuing at 2.2x FY21E ABV. Recommend BUY.

2:46 PM IST Revenue from operations stood at Rs 361.71 crore, down 5.3 per cent YoY. In the corresponding quarter of the previous fiscal, the figures stood at Rs 382.03 crore. Sequentially, the numbers dropped nearly 11 per cent to Rs 405 crore.   The company reported finance costs of Rs 1.32 crore while depreciation and amortisation expenses rose 71 per cent YoY to Rs 10.44 crore as against Rs 6.10 crore logged in the March quarter of FY19. READ MORE

LIVE UPDATES

Sectoral gainers and losers on the NSE


Top gainers and losers on the S&P BSE Sensex


CLOSING BELL

The S&P BSE Sensex gained 85 points or 0.22 per cent to settle at 39,215.64 level while NSE's Nifty50 index ends at 11,688, up 25 points or 0.21 per cent.

The benefits and drawbacks of tapping overseas markets for sovereign bonds

The Narendra Modi government’s decision to tap the overseas debt market through sovereign bonds has stirred quite a debate. There has been a lot of criticism amid fears that India will pay the price that Latin American nations did, in case of any global slowdown and currency frustrations. READ MORE

Jalan panel to suggest RBI transfer surplus capital to govt in over 3-5 years

The six-member panel, under former RBI Governor Jalan was appointed on December 26, 2018, to review the economic capital framework (ECF) for the Reserve Bank of India (RBI) after the finance ministry wanted the central bank to follow global best practices and transfer more surplus to the government. READ MORE

Former RBI governor Bimal Jalan

MARKET CHECK | Top gainers on the BSE at this hour

MCX 856.85 +43.30 +5.32
IRB 92.00 +5.10 +5.87
 
SPICEJET 141.95 +10.20 +7.74
 
CGPOWER 19.55 +1.75 +9.83
 
DHFL 55.95 +5.35 +10.57
 

NEWS ALERT | Esser Case :: MCA against giving same status to operational creditors and financial creditors: sources to CNBC TV18

-- MCA believes IBC makes it clear that finance creditors come first and operational come second

--  IL&FS has total 94,000 crore of total debt

Buzzing | Edelweiss Financial Services slip over 8%


NEWS ALERT | DHFL resolution plan likely to be submitted on Thursday: sources to BTVi

-- Lenders working on mechanism to get bondholders & MFs on board for resolution
 
-- IBA met SEBI officials to discuss bond holders mechanism on June 12

Alert: IBA is Indian Banks' Association

ICICI Securities on DCB Bank

DCB Bank has maintained its long-term growth path. Focus on risk adjusted growth, steady margins and improvement in Cost-to-income (CI) ratio are expected to lead to an improvement in earnings at 23.5% CAGR, return ratio of ~1.1% and RoE of ~15% by FY21E. Therefore, we reiterate our positive stance and maintain our target price of Rs 250 valuing at 2.2x FY21E ABV. Recommend BUY.

Tata Elxsi hits 52-week low after Q1 net profit drops 31% to Rs 48.79 crore

Revenue from operations stood at Rs 361.71 crore, down 5.3 per cent YoY. In the corresponding quarter of the previous fiscal, the figures stood at Rs 382.03 crore. Sequentially, the numbers dropped nearly 11 per cent to Rs 405 crore.
 
The company reported finance costs of Rs 1.32 crore while depreciation and amortisation expenses rose 71 per cent YoY to Rs 10.44 crore as against Rs 6.10 crore logged in the March quarter of FY19. READ MORE

Arvind Limited slips in trade, down over 3%


SpiceJet, Indigo gain ground

COMPANY LATEST HIGH LOW CHG
(rs)
CHG(%) VALUE
(rs CR)
VOLUME
SPICEJET 138.30 138.85 132.30 6.55 4.97 25.52 1845115
INTERGLOBE AVIAT 1476.80 1483.00 1418.85 30.90 2.14 30.53 206719
JET AIRWAYS 47.85 48.20 46.00 1.90 4.13 0.74 154311
GLOBAL VECTRA 54.40 55.90 54.40 -1.70 -3.03 0.00 755
TAAL ENTERPRISES 269.45 278.95 266.05 4.30 1.62 0.00 111

Auto stocks in reverse gear

COMPANY NAME LATEST HIGH LOW CHG
(Rs)
CHG(%) VALUE
(rs CR)
VOLUME
TATA MOTORS 167.35 172.40 166.60 -2.50 -1.47 18.97 1133579
ASHOK LEYLAND 85.50 86.60 85.00 -0.90 -1.04 3.15 368353
TATA MOTORS-DVR 79.95 81.95 79.20 -0.95 -1.17 2.14 268267
ESCORTS 541.80 554.50 537.00 -3.40 -0.62 5.62 103694
M & M 616.90 626.00 615.35 -6.20 -1.00 3.08 49951

Wipro Q1FY20 preview: Analysts see modest revenue growth, EBIT margin dip

Wipro, India’s fourth largest software company, is scheduled to release its April - June 2019 quarter results (Q1FY20) on July 17 and analysts expect a moderate revenue growth along with a fall in the earnings before interest and taxes (EBIT) margin.
 
The company had reported a net profit of Rs 2,099 crore during Q1FY19, with a gross revenue of Rs 13,980 crore. It had given a revenue growth guidance of +/- 1 per cent for the June 2019 quarter READ MORE HERE

Abidali Neemuchwala, CEO of Wipro. Photo: PTI

NEWS ALERT | NMDC's June iron ore sales up 18.2% at 2.66 mt Vs 2.5 mt (YoY)

--  Total iron ore production in June went up 2.9% at 2.52 mt Vs 2.45 mt (YoY)


Cox & Kings hits fresh low after fourth default in three weeks

In a filing to the BSE, the travels and tour operator said it has also failed to pay the interest of over Rs 41 lakh on secured redeemable non-convertible debentures worth Rs 50 crore in timely manner. These NCDs carried a tenure of 24 months at a coupon of 10 percent per annum payable per month, it said. CLICK HERE TO READ FULL REPORT

YES Bank falls 8% from intra-day high ahead of June quarter result

Shares of YES Bank were down 5 per cent to Rs 99 apiece in intra-day trade on the BSE on Wednesday, falling 8 per cent from its early morning high of Rs 108 ahead of April-June quarter (Q1FY20) earnings scheduled to be announced later today.
 
Most of the brokerages see pressure on YES Bank's profitability considering deterioration in asset quality and muted loan book growth during Q1FY20. READ MORE

Eicher Motors trade lower


Market check


Market check


Apollo Hospitals Enterprise's promoter pledging likely to hit 75%

Apollo Hospitals Enterprise (AHEL) might see its promoters' pledged shares going up for a short while to 75 per cent, from 68 per cent now. They are pledging shares for solvency funding at Apollo Munich Health Insurance, in which Apollo Hospitals Group is selling its entire 51.2 per cent to HDFC.
 
Earlier, almost 74 per cent of the promoter shares were pledged to unwind a deal with private equity player KKR, raising concerns in the market. READ MORE

Monsoon onset, withdrawal dates over central, north India may get altered

Senior IMD officials said the change also might not impact the actual arrival of monsoon over Kerala which is June 1, but the date of its progress, onset and also withdrawal over Central and Northern parts of the country might get changed following changing patterns.
 
It covers much of Central and Western India between June 5 to 15 and enters north India from July 1. READ MORE

Result impact | Dhanlaxmi Bank gains post Q1 result


European markets open

-- DAX, CAC 40 trade flat

Earnings Alert | Dhanlaxmi Bank Q1 result

-- Net profit at Rs 19.8 cr vs loss of 45 cr YoY

-- NII up 11% at Rs 90.1 cr vs 81.1 cr YoY
 
-- Provisions at 9.3 cr vs 16.3 cr QoQ

DHFL zooms over 12%


YES Bank pares day's gains, biggest loser on S&P BSE Sensex


NEWS ALERT | Sugar season to begin on October 1 with record 14.5 mt, says ISMA: CNBC TV18

-- Sugar producers will need government assistance via subsidies to tide over surplus

IDFC First Bank trades over 1% higher


NEWS ALERT | KNR Constructions bags order worth Rs 847.34 crore


MARKET CHECK


Mindtree to declare Q1 results today; here's what leading brokerages expect

In its annual general meeting (AGM) held on Tuesday, the shareholders of Mindtree, including the new promoter Larsen and Toubro (L&T), approved the proposal for a special dividend of Rs 20 per share for FY2019. L&T's L&T's Managing Director (MD) & Chief Executive Officer (CEO) SN Subrahmanyan said that Mindtree is not being snatched but has come under a bigger tree called L&T. READ MORE

United Breweries gains over 3%


Price, oscillators: Two ways to identify stocks that are likely to fall

Timing is everything. This is one rule traders who buy and sell stocks based on technical chart patterns swear by. While most market pundits and savvy investors give out tips on what and when to buy, the ‘sell calls’ are often missed. Both the components – the time to buy and time to exit a position are significant and have a bearing on the money/return you make. READ MORE

Polycab India, RVNL: 6 out of 7 IPOs listed in 2019 trade above issue price

At a time when the mid-and small-cap counters are struggling to find their feet and the fund mobilisation via the initial public offer (IPO) route hit a four-year low in the first half of calendar year 2019 (H1CY19), stocks of six out of the seven companies that raised funds via the primary market route during this period have given a handsome return.
 
These stocks have beaten the benchmark index S&P BSE Sensex by gaining up to 61 per cent against their issue price. These six companies are currently valued at Rs 6,272 crore, 19 per cent higher than the Rs 5,275 crore they collectively raised via IPOs. In comparison, the S&P BSE Sensex gained an average one per cent. READ MORE
 

Tata Elxsi continues to trade lower


Earnings Alert | Tata Elxsi reports Q1 nos.

-- Revenue at Rs 361.7 crore

-- EBITDA Margin at 19.3%

NEWS ALERT | L&T Construction-led JV wins order in the range of Rs 1000-2500 cr


Adani Ports & SEZ plans $650-mn fund mop-up via unsecured notes issuance

“The Finance Committee of Adani Ports and Special Economic Zone has approved the issuance of fixed rate senior unsecured notes aggregating to $650,000,000 and has approved the pricing, tenure and other terms of the notes,” it said in a regulatory filing. READ MORE

Marico gains in trade


HDFC AMC rallies 10% in two days on strong Q1 results, hits record high

Shares of HDFC Asset Management Company (AMC) hit a record high of Rs 2,129, up 7 per cent intra-day on the BSE on Wednesday, after the company reported a 42 per cent year-on-year (YoY) jump in net profit at Rs 292 crore in the June quarter of fiscal year 2019-20 (Q1FY20). The strong profit growth was led by lower expenses and higher other income, the company's financial data show. READ MORE

Next 6 months will be volatile for auto sector over BS-VI shift: MRF CMD

"In the immediate future, the industry faces challenges due to the paucity of credit funds, which have partly been addressed in the Budget with the expected infusion of Rs 70,000 crore into the public sector banks," said Mammen, who is optimistic about the Indian automotive industry's future in the long run. He expects that India would become the world's third-largest passenger vehicle segment by 2021, propelled by the economic growth that the country has witnessed and the accompanying increased consumption and urbanisation. READ MORE

Nifty reclaims 11,700-mark


Market check | Nifty50 crosses 11,700 after 6 trading sessions


Market check | Sensex at day's high


Commodity Check

-- Copper prices at 2-week high

-- Aluminium prices at 2-month high

(As reported by CNBC TV18)

Ramco Systems up over 4%


5Paisa Capital dips 5% pot Q1 results


DCB Bank plunges 14% on disappointing June quarter results

Shares of DCB Bank plunged 14 per cent to Rs 205 in Wednesday's early morning trade on the BSE after the private sector lender reported a sub-par performance in June quarter (Q1FY19) led by decline in loan growth, sequential rise in fresh slippages and non-performing assets (NPAs), and continued pressure on margin.
The bank’s loan growth of 13 per cent year-on-year (YoY) in Q1FY19 was the slowest in the past five years. The gross non-performing assets (NPAs) ratio - bad loans as a percentage of gross advances - rose to 1.96 per cent against 1.86 per cent in the year-ago quarter. READ MORE


Portfolio managers pin growth hopes on Budget proposal for NRIs

The Rs 13-trillion portfolio-management services industry, which has grown steadily over the past few years, is pinning its hope on the smooth implementation of the Budget proposal for the non-resident Indians (NRIs) for its growth. READ MORE

MARKET CHECK


ACC, Ambuja and Shree Cement likely to see volume decline of 4-13%

Cement companies are facing a slowdown in demand, with volumes growing at the slowest pace in six quarters. This comes even as realisations and lower costs have provided some comfort. Demand, which had remained strong in March, has slipped since, in what is usually a good season. READ MORE

Nifty Metal index trades lower


Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
REL. COMM. 1.63 -0.08 -4.68 2763919
YES BANK 104.45 0.55 0.53 2422614
SUZLON ENERGY 4.59 -0.08 -1.71 776443
RELIANCE POWER 3.94 0.01 0.25 371013
VODAFONE IDEA 11.79 -0.01 -0.08 280086
» More on Most Active Volume

Eveready Industries trades higher


Jay Bharat Maruti is trading over 4% lower


HDFC AMC extends gains, up 5%


MCX climbs over 4% after Q1 profit


Jet Airways gains nearly 4% as lenders decide eligibility criteria for bidders


Tata Elxsi trades lower after Q1 results


Broader market check


SpiceJet rises over 2%


CG Power dips over 4%


Maruti Suzuki slips 0.5%


Mindtree zooms nearly 1%


Cox & Kings locked in 5% lower circuit on fourth default


Tata Steel slips 0.6%


GAIL India dips over 1%


IndiGo trades flat with positive bias


Indian Oil Corp gains over 1%


YES Bank up over 1%


Vodafone Idea dips 0.85%


Wipro trades flat ahead of Q1 nos


Eveready Industries slips over 1%


Strides Pharma falls over 5%


Federal Bank slips over 1%


DCB Bank slips 12% lower on weak Q1 nos


Sectoral trends on NSE at this hour


Top gainers and losers on S&P BSE Sensex at opening


Market at open


Market at open


NEWS ALERT | Greaves Cotton seeks certain relaxations from SEBI and Fin Min w.r.t. buyback


Top gainers and losers on S&P BSE Sensex during Pre-open trade


Rupee opening

Rupee opens unchanged at Tuesday's closing level of 68.71 against the US dollar

Market at pre-open


Market at pre-open


Slowdown in demand eats into Bajaj Consumer Care's June quarter numbers

Unlike the March 2019 quarter, Bajaj Consumer Care was hit by slowdown in demand, leading to lower-than-estimated numbers in the June 2019 quarter (first quarter, or Q1). While the company’s standalone top line grew by 8.1 per cent year-on-year (YoY) to Rs 232.5 crore, its net profit was up 9.1 per cent to Rs 58.7 crore. READ MORE

Motilal Oswal Financial Services on DCB Bank

Outlook: Downgrade to Neutral

Last Close: Rs 239

Target Price: Rs 225 

The operating environment appears tough over the near term, which will likely exert pressure on growth and asset quality. The increase in funding cost arising from fixed rate refinancing taken in the past will continue exerting pressure on margins, while the fee income outlook remains muted. We expect loan growth to decelerate to 17% in FY20 v/s average 22% over FY15-19. We cut our FY20/21 PAT estimate by 12%/15%. RoA/RoE is expected to improve to 1.1%/13.9% in FY21, supported by better cost-ratios. We, thus, revise our TP to INR225 (1.9x FY21E ABV) and downgrade our rating to Neutral.

Stocks to watch: Mindtree, Wipro, YES Bank, Maruti, DCB Bank

Here's a look at some of the counters which are likely to trade actively in today's session -
 
Wipro: The IT services company is scheduled to report its March quarter results later in the day. Analysts expect a moderate revenue growth along with a fall in the earnings before interest and taxes (EBIT) margin.
 
YES Bank: The private sector lender is slated to announce its June quarter results today. This apart, going aggressive on MSME (micro, small and medium enterprise lending), YES Bank is looking to reduce loan turnaround time to one day in the segment. 
 
Other earnings: Mindtree, Tata Elxsi and Dhanlaxmi Bank are among 10 other companies that are expected to release their March quarter results today. READ MORE

Portfolio managers pin growth hopes on Budget proposal for NRIs

The Rs 13-trillion portfolio-management services industry, which has grown steadily over the past few years, is pinning its hope on the smooth implementation of the Budget proposal for the non-resident Indians (NRIs) for its growth. While presenting Union Budget for 2019-2020, Finance Minister Nirmala Sitharaman, said, “With a view to provide NRIs with seamless access to Indian equities, I propose to merge the NRI-Portfolio Investment Scheme (PIS) Route with the Foreign Portfolio Investment Route.” READ MORE

NEWS ALERT | Dilip Buildcon declared lowest bidder for projects in Karnatak worth Rs 361


Auto sales skid 10 months on the trot, new vehicle registrations down 5.4%

Automobile sales have encountered speedbreakers for the tenth month in a row, as overall new vehicle registration dropped by 5.4 per cent year-on-year this June. Commercial vehicle sales were down 19.3 per cent, two-wheelers took a five per cent hot, while passenger vehicles (PVs) declined by 4.6 per cent in June 2019. SIAM's recently released wholesale data stated that domestic PV sales declined by 17.54 per cent. READ MORE

Motilal Oswal Financial Services on Tata Chemicals

Recommendation: BUY

Last Close: Rs 606

Target Price: Rs 709

We maintain our estimate of a CAGR of 11% in revenue and 13% in PAT over FY19-21. The board of TTCH has approved the demerger of its consumer products
business and the transfer of the same to Tata Global Beverages (TGBL). This, in turn, is likely to help the company to focus on growing its chemical and specialty business arm, unlocking value for its consumer business. The company’s cash-cow businesses (soda ash and sodium bicarbonate) are expected to remain steady on the back of a favorable demand-supply scenario. Our SOTP-based target price stands at Rs 709 (17% upside) – implied EV/EBITDA of 8.0x. Maintain Buy.

Motilal Oswal Financial Services on Federal Bank

Recommendation: BUY

Last Closing Price: Rs 107

Target Price: Rs 125 

The bank has maintained strong momentum in business growth and is reporting a gradual improvement in operating earnings. It has limited exposure to stressed entities, while the healthy coverage ratio of 67.4% (including TWO) will likely facilitate controlled credit costs. With stronger growth in retail and management guidance of increasing the retail mix to 50%, the margins will likely improve gradually. We raise our FY20/21 PAT estimate by 0.9%/2.4%. Over FY19-21, we expect 20bp RoA expansion and RoE improvement to 13.3%. Maintain Buy with revised PT of Rs 125 (1.6x FY21E ABV)

IndiGo promoters' war: No listing norm violation, Bhatia may tell Sebi

Rahul Bhatia-founded InterGlobe Enterprises (IGE) is expected to tell the Securities and Exchange Board of India (Sebi) that the articles of mutual agreement signed with IndiGo co-promoter Rakesh Gangwal have been recognised in the market watchdog’s listing and disclosure regulations as having the force of law. Under the mutual agreement, control is vested with the IGE group. READ MORE
Illustration by Ajay Mohanty

Federal Bank's first quarter results suggest strength in SME business

Federal Bank, with a 40 per cent concentration in retail loans and loans to small and medium enterprises (SMEs), is often seen as good indicator of demand from these segments, particularly in South India. With 18 per cent growth in net interest income (Rs 1,154 crore) and 46 per cent net profit growth year-on-year (YoY) to Rs 384 crore, the numbers suggest there is little cause for worry. READ MORE

Rate cut expectations, foreign demand boost govt bonds to 2016 highs

Yields have slid more than 100 basis points since April-end amid bets the central bank may add to its three rate cuts this year. And negative-yielding debt in much of the developed world is adding to the allure of high-yielder like India, traders said. READ MORE

Suzlon defaults on $172-mn bonds, in talks with investors for stake sale

Wind energy major Suzlon Energy did not pay its bondholders for $172-million in foreign currency convertible bonds (FCCBs) which were due on Tuesday, the company disclosed to the BSE exchange. The $172 million was part of a bond series first restructured in 2014.
 
“The company is working on a holistic solution for its debt and continues to be in discussion with various stakeholders in relation to its outstanding debt, including the bonds,” Suzlon stated. READ MORE

NSE to exclude DHFL shares from equity derivatives segment from Sept 27

"No fresh contracts shall be introduced after the expiry of September 2019 contracts. All the existing futures and options contracts across all expiries shall expire on September 26, 2019," the exchange said in a notice on Tuesday.
 
However, new strikes would be introduced in the existing contract months if required, the bourse said. READ MORE

As corporate earnings slow down, brokerages raise red flag on valuation

A slowdown in corporate earnings and India’s headline economic growth is forcing many brokerages to raise red flags on equity valuation on D-Street. “We wonder if the Indian market and ‘growth’ stocks will trade at current high multiples if the current slowdown in the Indian economy was to be more prolonged than the market’s current expectations?” ask Kotak Institutional Equities analysts, led by Sanjeev Prasad, in their latest report on the Indian equity. READ MORE

Jet Airways lenders to set rules this week to weed out casual bidders

Lenders to Jet Airways will vote this week to decide who all can bid for the bankrupt airline, as they don’t want any frivolous players in the race, the committee of creditors (CoC) discussed in its first meeting on Tuesday.
 
E-voting should be over by Thursday or Friday, and advertisements inviting expressions of interest (EoIs) for Jet are scheduled to be out by Saturday, July 20, said sources who attended the meeting. The suitors will get time till the first week of August to submit EOIs. READ MORE

NEWS ALERT | Christine Lagarde to step down on Sept 12 as Managing Director of IMF

10-year bond yield hits lowest level since demonetisation, closes at 6.33%

The 10-year bond yield closed at 6.33 per cent on Tuesday, the lowest since December 6, 2016. The bond yields had plummeted in 2016 due to huge liquidity in the banking system after the government demonetised high-value currency.
 
The five-year government bonds also closed near the same level, at 6.35 per cent. The spread between the government bond and equivalent maturity private bonds, however, has widened as corporate bond yields have not fallen as sharply as G-secs. READ MORE

Technical calls from HDFC Securities: Buy Biocon, Ultratech Cement

Nifty View
 
The Nifty managed to extend its pullback with the help of realty, pharma and FMCG sectors. It has completed 38.2 per cent retracement of the swing which was seen from 11,982(July 5, 2019) to 11,461(July 9, 2019). Next resistance for Nifty is seen at 11,721 and 11,782, which happen to be 50 per cent and 61.8 per cent retracements. Immediate Support is seen at 11,635 and positional support is placed at 11,500. READ MORE

Bulk deals on NSE as on Tuesday

FII/FPI & DII trading activity on NSE, BSE and MSEI


Rupee check

Source: Bloomberg


Oil check

At 7:58 am, the Brent Crude Futures were at $64.57 per barrel

SGX Nifty

At 7:55 am, SGX Nifty was trading 10 points lower at 11,637 level, indicating a flat to negative start for the domestic indices. 

Asian Markets check

Source: Reuters


US Market check

Source: Reuters


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