MARKET WRAP: Sensex surges 292 pts, Nifty tops 11,850; Adani Power up 17%

Topics MARKET WRAP

Photo: Kamlesh Pednekar
Domestic indices ended at a three-week closing high on Monday tracking positive global sentiment stemmed from trade truce between the US and China. Heavy buying was witnessed across finanicals, banking, automobiles and realty stocks.

The S&P BSE Sensex ended 292 points, or 0.74 per cent, higher at 39,686 levels with Tata Motors, Bajaj Auto and HDFC being the top gainers. The broader Nifty50 too ended the session with gains of 77 points, or 0.65 per cent, at 11,866 levels.

In the broader market, S&P BSE Mid-Cap ended 81 points, or 0.54 per cent higher at 14,889 levels while the S&P BSE Small-Cap gained 43 points, or 0.30 per cent, to settle at 14,283 levels. 

Sectorally, realty led the rally with a gain of over 2 per cent. This was followed by gain in automobiles, pharma and bank counters, which rose about a per cent each.  

BUZZING STOCK

Eveready Industries shares were locked in the 5 per cent lower circuit at Rs 76 on the BSE on Monday after Price Waterhouse & Co Chartered Accountants LLP (PwC) quit as company's auditors on Friday due to their "inability" to obtain sufficient audit evidence of inter-company deposits and its recovery. READ MORE

Shares of Reliance Infrastructure (RInfa) slipped 10 per cent to Rs 50 in early morning trade on the BSE on Monday after rating agency Brickwork downgraded the company’s bank loan facilities of Rs 1,151 crore to 'BWR D' from 'BWR C'. READ MORE

Click here for more buzzing stocks

GLOBAL CUES

Asian markets ended hugher on Monday after the US and China decided to resume trade talks on Saturday. Japan's Nikkei settled with a gain of 2.13 per cent while Sout Korea's Kospi slipped marginally by 0.04 per cent.

Oil prices rose more than $1 a barrel with OPEC and its allies on track to extend supply cuts until at least the end of 2019 at their meeting in Vienna this week.

(With inputs from Reuters)

 

3:38 PM IST

3:37 PM IST

3:34 PM IST The S&P BSE Sensex ended 292 points or 0.74 per cent higher at 39,687 levels while Nifty50 gained 77 points or 0.65 per cent to end at 11,866. 

3:14 PM IST Target Price: Rs 3,771   Upside: 9%   CMP: Rs 3,474 (as on 28 June 2019)   Bayer CropScience’s key strength remains in distribution reach and strong network of more than 3,500 field officers that work closely with farmers. Although the company has launched 15 products in the crop protection segment over FY16-19, growth remains weak, which can be attributed to below normal Monsoon, low pest incidences and slower scale-up of new products. While management says lack of blockbuster products, such as Confidor, has hurt revenue growth, among new launches Laudis (corn herbicide launched in FY16) has seen strong demand and become the Bayer CropScience’s second-biggest product. The company’s revival depends largely on its new product offerings in crop protection as well as seeds. Due to correction in the stock price of nearly 21 per cent in the past three months, we upgrade to Accumulate from Reduce with a new TP of Rs 3,771 from Rs 4,383 on 30x (unchanged) FY21E P/E.

3:10 PM IST ADANIPOWER 60.20 +8.90 +17.35   WABAG 345.55 +36.65 +11.86   GODREJPROP 1,090.00 +86.70 +8.64   RELAXO 449.85 +30.20 +7.20   BOMDYEING 115.35 +7.60 +7.05

2:57 PM IST Nifty strong up move is expected to play out in the near term   We believe Nifty is in a structural uptrend. Recent behavioral parameters have affirmed the positive outlook. We expect the index to scale new highs in the near term and test 12300-12400 odd levels. A budget rally could be in the offing and aggressive long positions can be initiated. Support for the index is seen at 11500. A bull call spread can be initiated at current levels.   Nifty July series bull call spread   Buy 11900 Call @ 175   Sell 12200 call @ 53   Premium outflow: 122 (max Loss)   Max Profit: 178

2:50 PM IST - Finance Minister, Nirmala Sitharaman, said in a written reply to Lok Sabha 

2:44 PM IST

2:42 PM IST

2:29 PM IST -- NCLAT directs NCLT to decide in 6 weeks whether or not to allow insolvency proccedings -- ICICI Bank had fied insolvency case against JP Assoc in Sept 2018

LIVE UPDATES

Sectoral gainers and losers on NSE


Top gainers and losers on S&P BSE Sensex


CLOSING BELL

The S&P BSE Sensex ended 292 points or 0.74 per cent higher at 39,687 levels while Nifty50 gained 77 points or 0.65 per cent to end at 11,866. 

Subdued show by Bayer CropScience likely to persist: Elara Capital

Target Price: Rs 3,771
 
Upside: 9%
 
CMP: Rs 3,474 (as on 28 June 2019)
 
Bayer CropScience’s key strength remains in distribution reach and strong network of more than 3,500 field officers that work closely with farmers. Although the company has launched 15 products in the crop protection segment over FY16-19, growth remains weak, which can be attributed to below normal Monsoon, low pest incidences and slower scale-up of new products. While management says lack of blockbuster products, such as Confidor, has hurt revenue growth, among new launches Laudis (corn herbicide launched in FY16) has seen strong demand and become the Bayer CropScience’s second-biggest product. The company’s revival depends largely on its new product offerings in crop protection as well as seeds. Due to correction in the stock price of nearly 21 per cent in the past three months, we upgrade to Accumulate from Reduce with a new TP of Rs 3,771 from Rs 4,383 on 30x (unchanged) FY21E P/E.

Market Update | Top gainers on BSE at this hour

ADANIPOWER 60.20 +8.90 +17.35
 
WABAG 345.55 +36.65 +11.86
 
GODREJPROP 1,090.00 +86.70 +8.64
 
RELAXO 449.85 +30.20 +7.20
 
BOMDYEING 115.35 +7.60 +7.05

Budget & Markets | Pre-budget market outlook by Sahaj Agarwal, Kotak Securities

Nifty strong up move is expected to play out in the near term
 
We believe Nifty is in a structural uptrend. Recent behavioral parameters have affirmed the positive outlook. We expect the index to scale new highs in the near term and test 12300-12400 odd levels. A budget rally could be in the offing and aggressive long positions can be initiated. Support for the index is seen at 11500. A bull call spread can be initiated at current levels.
 
Nifty July series bull call spread
 
Buy 11900 Call @ 175
 
Sell 12200 call @ 53
 
Premium outflow: 122 (max Loss)
 
Max Profit: 178

Gold Update | No proposal to put a limit on gold or precious stones' holdings for pvt individuals at present: FM in Lok Sabha

- Finance Minister, Nirmala Sitharaman, said in a written reply to Lok Sabha 

Stock Alert | 23 lakh shares of Petronet LNG traded in a block on NSE at Rs 247.40/sh


Stock Alert | Adani Power hits 52-week high


NEWS ALERT | JP Associates IBC case

-- NCLAT directs NCLT to decide in 6 weeks whether or not to allow insolvency proccedings

-- ICICI Bank had fied insolvency case against JP Assoc in Sept 2018

Zee Entertainment up over 3%


June Auto Sales | M&M

- Total sales at 42,547 units, down 6% YoY

- Total domestic sales at 39,471 units , down 5% YoY

- Total exports at 3,076 units, down 11% YoY 

Market check | Sensex rallies over 300 pts


VA Tech Wabag soars 14% on hopes of water mgt announcement in Budget 2019

Shares of VA Tech Wabag surged 14 per cent intra-day to trade at Rs 352 apiece on the BSE on Monday, boosted by heavy volumes. The buying interest was seen in the scrip on expectations that Budget 2019 may focus on the water crisis. The trading volumes on the counter jumped more than 15-times with a combined 1.4 million shares, representing 2.5 per cent of the company's total equity, changing hands on the NSE and BSE till 01:29 pm. READ MORE

GST may become two-tier tax with merger of 12% and 18% slabs: Jaitley

Former Finance Minister Arun Jaitley Monday said the 12 and 18 per cent tax slabs in goods and services tax (GST) could be merged going forward as revenues increase, thereby effectively making it a two-tier tax. Penning a Facebook post on the second anniversary of GST rollout, Jaitley said as many as 20 states are already showing more than a 14 per cent increase in their revenues and do not require the centre to compensate them for revenue loss arising out of GST implementation. READ MORE

Nifty Metal index off day's high


NEWS ALERT | Tata Group not keen to bid for Jet Airways under NCLT: sources to BTVi

- Co may look at Jet Airways' assets only if airline goes for liquidation
 
- Tata Group may eye Jet Airways' Boeing 777s

June Auto Sales | Atul Auto

-- Total sales at 3,704 units vs 3,847 units YoY. down 3.7%

Stocks that hit 52-week high on S&P BSE Sensex

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
AAVAS FINANCIERS 1524.60 1560.70 24.40 1.63
ABBOTT INDIA 8943.75 8998.95 53.35 0.60
BAJAJ FIN. 3699.35 3716.25 17.05 0.46
BAJAJ FINSERV 8551.35 8574.75 13.60 0.16
CONTAINER CORPN. 579.90 582.60 9.50 1.67
» More on 52 Week High

NEWS ALERT | Aster DM Healthcare announces opening of new Aster RV Hospital in Bengaluru


NEWS ALERT | Will review the analysis and release first advance estimate after monsoon, says ISMA: CNBC TV18

-- There will be need for India to export sugar in 2019-20 as well: ISMA

-- Estimate sugar production of about 28.2 mt in 2019-20 vs 32.95 mt in 18-19: ISMA

Nifty Fin Service index is trading higher


NEWS ALERT | Mulling scheme to use global agencies' credit line to fund small enterprises: Nitin Gadkari

ICICI Direct on Pokarna

Recommendation: Hold

Last close: Rs 123

Target: Rs 140


At the CMP, the stock is trading at an attractive valuation of ~4.7x FY19E EPS. While valuations appear to be cheap, the USITC’s affirmation on the US market getting materially injured/threatened due to imports of quartz surface products from India and Turkey could lead to antidumping duty being imposed on quartz surfaces imported from India though the management could challenge any negative finding, going forward. While we are currently awaiting clarity in terms of quantum of antidumping duty on quartz, any development on this front could have a negative impact on Pokarna’s financial performance. Hence, we downgrade the stock to HOLD with a revised target price of | 140/share (6x FY20E EPS).

Buzzing | ONGC continues slide


Coal India slips in trade


Sunteck Realty up over 5%


Nifty outlook by IDBI Capital


VA Tech zooms 11%


Realty shares extend gains; Godrej Prop, Oberoi Realty hit record highs

Shares of real estate companies were trading higher for the fifth straight day, with Godrej Properties and Oberoi Realty hitting their respective all-time highs on the National Stock Exchange (NSE) on Monday. At 11:05 am, Nifty Realty index, the largest gainer among sectoral indices, was up 1.5 per cent to 289 levels, as compared to a 0.6 per cent rise in the Nifty50 index. In the past week, the realty index has rallied 6 per cent, relative to a 1.4 per cent rise in the benchmark index. READ MORE

Torrent Power soars on power agreement with Gujarat Electricity Comm

On Tuesday, June 25, the company, through a regulatory filing said that GERC had given approval to a 278 megawatt (MW) power project between the company's UnoSugen Power Plant and its licensed distribution business for cities of Ahmedabad, Gandhinagar and Surat. READ MORE

MARKET CHECK


NEWS ALERT | Govt may announce next tranche of CPSE ETF by mid-July: sources to CNBC TV18

- Expected to raise Rs 10,000 cr 

NEWS ALERT | Ashok Leyland June auto sales

--  Total sales down 19% YoY to 12,810 units

-- Medium & Heavy Commerical vehicles sale down 25% to 8,427 units

-- Light Commercial vehicles sale dips 3% to 4,383 units
Photo: Reuters

NEWS ALERT | Monsoon has crossed the southern part of Gujarat: Met Dept to CNBC TV18

-- Expect rainfall at 95% of long-time average in July

-- In next 24 hours, monsoon should move further to central region and Rajasthan
Representative image | Photo: Bloomberg

Maruti Suzuki pares losses, trades higher on June auto sales numbers


Escorts Ltd climbs over 3%


NEWS ALERT | Maruti Suzuki June Auto sales

-- Total sales at 1.24 lakh units, down 14% YoY
 
-- Domestic sales at 1.14 lakh units, down 15.3% YoY
 
-- Exports at 9847 units, up 5.7% YoY

Manufacturing suffers setback in June; PMI down to 52.1 on weak demand

Growth in India’s manufacturing sector slowed last month as the expansion in new orders and output eased despite factories cutting prices again, according to a private survey which also showed a decrease in the rate of hiring. The Nikkei Manufacturing Purchasing Managers’ Index, compiled by IHS Markit, fell to 52.1 in June from 52.7 in May, but remained above the 50-mark that separates growth from contraction for a 23rd month. READ MORE

Reliance Infra slips 10% on rating downgrade by Brickwork

Shares of Reliance Infrastructure (RInfa) slipped 10 per cent to Rs 50 in early morning trade on the BSE on Monday after rating agency Brickwork downgraded the company’s bank loan facilities of Rs 1,151 crore to 'BWR D' from 'BWR C'. “The revision in the rating assigned to the bank loan facilities of Rs 1,151 crore of RInfra is primarily due to the deterioration in the credit risk profile and weakening of the financial/debt servicing profile of the company owing to substantial losses reported by the company during FY19. ,” Brickwork said in rating rational. READ MORE

NEWS ALERT | Delhi High Court dismisses GVK’s plea seeking to bar Bidvest from selling stake in Mumbai Airport

NEWS ALERT | Alembic Pharma gets US FDA nod for Clonazepam Orally


June Auto Sales | Eicher Motors

- Total domestic sales at 4,136 units, down 24.7% YoY

- Total exports at 366 units, down 10.7% YoY

- Total buses/trucks sales at 4,502 units, down 28.7% YoY

Bank of Baroda down 1% post reports it has bought DHFL loans worth Rs 3k cr

Shares of Bank of Baroda (BoB) slipped 2 per cent to Rs 120 apiece in the early morning trade on Monday after reports surfaced the state-run lender has entered into a transaction with Dewan Housing Finance Corporation(DHFL) to buy loans worth Rs 3,000 crore against its exposure to the non-bank lender.
 
At 09:50 am, the stock was trading nearly a per cent lower at Rs 121 apiece on the BSE while shares of DHFL were ruling at Rs 71, down one per cent. On the other hand, the benchmark S&P BSE Sensex was trading 245 points or 0.62 per cent higher at 39,639 levels. READ MORE

Eveready Industries locked in 5% lower circuit after PwC resigns as auditor

Eveready Industries shares were locked in the 5 per cent lower circuit at Rs 76 on the BSE on Monday after Price Waterhouse & Co Chartered Accountants LLP (PwC) quit as company's auditors on Friday due to their "inability" to obtain sufficient audit evidence of inter-company deposits and its recovery. The retail battery and flashlight manufacturer has now appointed Singhi & Co Chartered Accountants as its auditor with effect from June 29, 2019. READ MORE

NEWS ALERT| Indiabulls Housing Fin makes interest payment against NCDs due on June 30


SBI, Syndicate Bank: Should you buy PSU banks ahead of Union Budget 2019?

The past one year has been a consolidation phase for Nifty PSU Bank index in the range of 2,600. - 3,500 levels. Technical charts reveal formation of an 'Inverse Head and Shoulder' pattern that can result in a bigger upside only after a successful breakout. That said, the current trend seems positive and a rally towards 3,400 – 3,500 is in progress, as per the daily chart. READ MORE

MARKET CHECK


Tatas are keen to buy Jet's grounded fleet, bilateral flying rights

The Tata Group has two joint ventures in the aviation space. One is with budget airline AirAsia and the other is its stake in full-service carrier Vistara, a joint venture with Singapore Airlines. Both Vistara and AirAsia India, along with their partners, are quietly putting together an aggressive plan to become a formidable force in the skies. AirAsia India plans to double their fleet from 21 to 40 aircraft by April next year and also plans to start international operations to Sri Lanka, Thailand and Malaysia by September 2019. READ MORE

Nifty Private Bank index is trading 0.8 per cent higher


Bajaj Auto trades higher on June auto sales figures


June Auto Sales | Bajaj Auto

- Total sales at 4.04 lakh units, flat YoY

- Exports at 1.75 lakh units, up 3% YoY

- Domestic sales at 2.29 lakh units, down 2% YoY

Reliance Infra tumbles over 8%


Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
REL. COMM. 1.26 -0.06 -4.55 1476368
RELIANCE INFRA. 54.40 -1.10 -1.98 498454
RELIANCE CAPITAL 65.70 -0.45 -0.68 477960
DEWAN HSG. FIN. 72.50 0.40 0.55 397657
RELIANCE POWER 4.20 0.04 0.96 316696
» More on Most Active Volume

NTPC rises 2%, highest gainer on the BSE


BSE Oil & Gas index is trading 0.36% lower


NIfty Metal index soars after trade tensions ease between US and China


Nifty Auto index trading a per cent higher ahead of auto-sales figures


IGL dips over 3%


Market check


Broader markets perform in-line with benchmak indices


Balrampur Chini Mills gains nearly 2%


McLeod Russel slips nearly 5% in trade


DHFL trades mildly higher


Indiabulls Housing Fin gains 2%


Eveready Industries slips 5% after auditor resigns


Indraprastha Gas Ltd slips nearly 3%

- Prices of LPG gas have been slashed 


Titan sees profit booking


SpiceJet gains over 2% in early trade


Asian Paints gains 0.6% in early trade


Hindalco Industries is trading mildly higher


Sectoral trends on NSE at this hour


Top gainers and losers on S&P BSE Sensex


Market at open


Market at open


Sadbhav Infrastructure Projects zooms 10% in Pre-open


Rupee opening

Rupee opens stronger at 68.90/$ vs Friday's close of 69.01 against the US dollar

Reliance Capital slips 10% in Pre-open


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


Market at pre-open


Market at pre-open


DHFL lenders to meet today to seek resolution to Rs 90,000-crore debt

The consortium of 30 lenders led by state-run Union Bank of India, which includes banks and other financial institutions, may also consider conversion of debt into equity that can make them the largest shareholder in the mortgage lender, sources said over the weekend.
 
The debt recast plan will be arrived at as per the RBI's revised circular on resolving asset quality stress, they said. READ MORE

Stocks to watch: Bank of Baroda, DHFL, Eveready, auto stocks, KPTL

Here's a list of some of the companies whose shares are expected to trade actively in Monday's session -
 
Eveready Industries: Price Waterhouse & Co Chartered Accountants LLP has quit as Eveready Industries’ auditor, saying it has been unable to obtain sufficient audit evidence of inter-company deposits and its recovery. In its place, Singhi & Co Chartered Accountants has been appointed.
 
Bank of Baroda: The state-run lender has bought DHFL loans worth Rs 3,000 crore against its exposure to the non-bank lender, according to a news report by Mint.
 
Godrej Properties: Godrej Properties on Saturday said it has raised Rs 2,100 crore by issuing equity shares to qualified institutional buyers (QIBs). READ MORE

Indian markets have not sustained pre-Budget rallies in the past

Market expectations from the Union Budget hold a key in determining how stocks could fare post the budget, an analysis by Morgan Stanley shows. The study says whenever the market has high expectations—measured pre-budget performance of benchmark indices—the post-budget returns often disappoint. READ MORE

Look for cheap stocks in cyclicals

Let’s use an analogy to illustrate the behavioural quirks of stock-picking. Say, you need a new cell phone. There are certain features which are must-have, and other features that you consider useful or attractive.
 
After you’ve narrowed down choices, price is a determining factor: given two gadgets with similar performance, you’ll pick the cheaper. READ MORE

Russia, Saudi agree to extend OPEC production cut deal: Vladimir Putin

Russia and Saudi Arabia have agreed to extend a deal to keep oil production low owing to abundant world supplies, President Vladimir Putin said on Saturday. "We will extend this deal, Russia and Saudi Arabia. For how long? We will think about that. For six or nine months. It is possible that it could be up to nine months," Putin told reporters after a G20 summit in Osaka. READ MORE
Russian President Vladimir Putin speaks to the media at the G-20 summit in Osaka, western Japan. Photo: Reuters

Growth stories are overwhelmingly in the EM universe: Cameron Brandt

It has been an eventful first half for global financial markets that have braved volatile crude oil prices and escalating trade war tensions between the US and China. Back home, political uncertainty due to the general election kept investors on the edge. US-based CAMERON BRANDT, director of research at EPFR Global, tells Puneet Wadhwa that among emerging markets (EMs), funds dedicated to Russia, South Korea and China have experienced heavy redemptions while Saudi Arabia, India and Brazil equity funds attracted fresh money. READ MORE
Cameron Brandt, Director of research, EPFR Global

Street signs: Brokers up margin, KPR Agro IPO pull-out dulls mood, and more

Will big MFs get bigger? Shares of HDFC Asset Management Company (AMC) gained over 15 per cent in June. The gains have come despite the turbulence faced by the mutual fund (MF) industry and tightening of regulatory norms, which are expected to make a dent in industry assets.
 
Analysts say the surge in shares of HDFC AMC is an indication that the Street expects bigger players to benefit from the recent events in the Rs 25-trillion MF industry. “Corporate defaults have shattered the confidence. READ MORE

Commodity Picks: 1 July

Maize
 
Maize prices in Gulabbagh are trading at Rs 2,085 per quintal. Prices are expected to trade higher towards Rs 2,150 per quintal in a couple of weeks following aggressive buying by end users and restricted arrivals. READ MORE

Weekly market outlook and two stock calls by Sameet Chavan of Angel Broking

Eventful week on the global as well as domestic front
 
Last three weeks have not been so good for our markets mainly on the back of some domestic concerns. Last week, our markets started the proceedings on a sluggish note and once again the major support zone of 11,650 – 11,630 was challenged in the initial part. Fortunately, similar to recent patterns, strong buying emerged at lower levels which pushed the index significantly higher to enter a relatively safer zone. Although, the last couple of days saw some struggle around 11,800 – 11,850, the Nifty eventually managed to close a tad below the 11,800-mark by adding more than half a per cent to the previous week’s close. READ MORE

Top trading ideas by Prabhudas Lilladher: Buy Indraprastha Gas, HUL

BUY Indraprastha Gas (IGL)
 
CMP: Rs 314.65
 
TARGET: Rs 340
 
STOP LOSS: Rs 306
 
The stock has witnessed a decent erosion recently and has taken support near Rs 308 levels which is the also the trendline support base connecting the previous major bottoms. The relative strength index (RSI) also is indicating a trend reversal from near the oversold zone and has signaled a buy. With a good volume participation witnessed and the chart looking attractive, we recommend a buy in this stock for an upside target of Rs 340 keeping a stop loss of Rs 306. READ MORE

Bulk deal on NSE as on Friday

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


Rupee check

Source: Bloomberg


SGX Nifty

At 8:21 am, SGX Nifty was trading 20 points higher at 11,858 levels

Oil check

At 8:20 am, Brent Crude Futures were at $66.14 per barrel

Asian Markets check


US Market check


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