MARKET WRAP: Indices end higher ahead of Budget 2019, Nifty below 11,950

Domestic indices ended Thursday's trading session in the green ahead of the Union Budget presentation on Friday, July 5.

The S&P BSE Sensex ended 69 points, or 0.17 per cent, higher at 39,908 levels with Bharti Airtel, Tata Motors and IndusInd Bank being the top gainers. The broader Nifty50 too settled at 11,947 levels, up 30 points, or 0.25 per cent.

In the broader market, S&P BSE Mid-Cap ended 0.19 per cent lower at 14,918 levels while the S&P BSE Small-Cap gained 0.12 per cent, to settle at 14,329 levels.

Sectorally, public sector banks' scrips gained the most with the index scaling 2 per cent intra-day. It ended 1.31 per cent higher. This was followed by gains in realty counters. The biggest losers at the bourses were metal and pharma scrips with their index sliding 1.11 per cent and 0.64 per cent respectively.

Click here for latest in the Economic Survey

 
BUZZING STOCKS

Shares of Uniply Industries rallied nearly 5 per cent to Rs 66.50 apiece in the early morning trade on Thursday, a day after Kuwait-based multi-family office investment firm Markab Capital WLL announced acquisition of a controlling stake in the company. The offer values the company at an enterprise value of over Rs 1,550 crore on a fully diluted basis. READ MORE

Shares of IndiaMART InterMESH (IML) made a strong debut on the bourses, by listing at Rs 1,180, 21 per cent higher against its issue price of Rs 973 apiece on the National Stock Exchange (NSE) and BSE. READ MORE

GLOBAL CUES

Asian markets ended higher on Thursday. Japan's Nikkei gained 0.3 per cent while South Korea's Kospi settled 0.61 per cent higher. In the commodities market, Brent Crude Futures were trading at $63.77 per barrel.

 


3:50 PM IST

3:50 PM IST

3:37 PM IST The S&P BSE Sensex gained 69 points or 0.17 per cent to settle at 39,908 while the NSE's Nifty50 index ended at 11,947, up 30 points or 0.25 per cent. 

2:40 PM IST The National Company Law Appellate Tribunal (NCLAT) on Thursday approved Lakshmi Mittal-led ArcelorMittal’s plan for Essar Steel India Limited. The appellate tribunal had on May 21 heard the contentions of all the parties and reserved its judgment in the case. The distribution of amount for all operational and financial creditors will be reflected in ArcelorMittal's resolution plan. The Committee of Creditors (CoC) will have no role in this distribution. READ MORE

2:26 PM IST

2:15 PM IST The National Company Law Appellate Tribunal (NCLAT) on Thursday approved Lakshmi Mittal-led ArcelorMittal’s plan for Essar Steel India Limited. The appellate tribunal had on May 21 heard the contentions of all the parties and reserved its judgment in the case. The distribution of amount for all operational and financial creditors will be reflected in ArcelorMittal's resolution plan. The Committee of Creditors (CoC) will have no role in this distribution.   ArcelorMittal had told NCLAT that it would pay Rs 42,000 crore, including a minimum of guarantee of Rs 2,500 crore as working capital, for acquiring debt-laden Essar Steel under the insolvency process. READ MORE

2:10 PM IST Existing US tariffs will have to be removed if there is to be a trade deal between Beijing and Washington, China's commerce ministry said on Thursday. The leaders of the two countries agreed last weekend to relaunch trade talks that had stalled in May after US officials accused China of pulling back from commitments made in the text of a pact negotiators had said was nearly finished. READ MORE

2:01 PM IST -- A decline of more than 17% in June sales, -- Sale of  2,210 units vs 2,669 units in June last year

1:57 PM IST Adani Enterprises shares gained 4 per cent to quote at Rs 162 on the BSE during the morning trade on Thursday after the Union Cabinet approved Ministry of Civil Aviation’s proposal to privatize three out of six state airports. READ MORE

1:50 PM IST -- A meeting of board of directors of REC scheduled to be held on July 10, 2019, to consider a proposal for raising of funds through issue of unsecured/secured non-convertible bonds/debentures through private placement, up to an amount of Rs 75,000 crore, in one or more tranches

1:45 PM IST Economic Survey for 2018-19 was tabled in the Lok Sabha on Thursday, a day ahead of the presentation of the Union Budget for 2019-20. The Survey, which is the government’s report card for the year gone by and presents the health of the economy, comes at a time when the economy is slowing and consumption has staggered.   As per data released a few days ago, India's GDP growth came in at 5.8 per cent for the January – March quarter, sharply down from 6.6 per cent in the previous quarter, well below forecasts and the slowest in over four years. READ MORE

LIVE UPDATES

Sectoral gainers and losers on NSE


Top gainers and losers on S&P BSE Sensex


CLOSING BELL

The S&P BSE Sensex gained 69 points or 0.17 per cent to settle at 39,908 while the NSE's Nifty50 index ended at 11,947, up 30 points or 0.25 per cent. 

Essar Steel: NCLAT approves ArcelorMittal's bid with modifications

The National Company Law Appellate Tribunal (NCLAT) on Thursday approved Lakshmi Mittal-led ArcelorMittal’s plan for Essar Steel India Limited. The appellate tribunal had on May 21 heard the contentions of all the parties and reserved its judgment in the case. The distribution of amount for all operational and financial creditors will be reflected in ArcelorMittal's resolution plan. The Committee of Creditors (CoC) will have no role in this distribution. READ MORE

Sudden fall in YES Bank, down 4%


Essar Steel: NCLAT approves Lakshmi Mittal-led ArcelorMittal's bid

The National Company Law Appellate Tribunal (NCLAT) on Thursday approved Lakshmi Mittal-led ArcelorMittal’s plan for Essar Steel India Limited. The appellate tribunal had on May 21 heard the contentions of all the parties and reserved its judgment in the case. The distribution of amount for all operational and financial creditors will be reflected in ArcelorMittal's resolution plan. The Committee of Creditors (CoC) will have no role in this distribution.
 
ArcelorMittal had told NCLAT that it would pay Rs 42,000 crore, including a minimum of guarantee of Rs 2,500 crore as working capital, for acquiring debt-laden Essar Steel under the insolvency process. READ MORE

Trade war: China says existing US tariffs should be removed for a deal

Existing US tariffs will have to be removed if there is to be a trade deal between Beijing and Washington, China's commerce ministry said on Thursday. The leaders of the two countries agreed last weekend to relaunch trade talks that had stalled in May after US officials accused China of pulling back from commitments made in the text of a pact negotiators had said was nearly finished. READ MORE

June Auto Sales | Force Motors

-- A decline of more than 17% in June sales,

-- Sale of  2,210 units vs 2,669 units in June last year

Adani Ent rally 4% after cabinet nods Lucknow, Ahmedabad airport leasing

Adani Enterprises shares gained 4 per cent to quote at Rs 162 on the BSE during the morning trade on Thursday after the Union Cabinet approved Ministry of Civil Aviation’s proposal to privatize three out of six state airports. READ MORE

NEWS ALERT | REC to consider a proposal for raising an amount of Rs 75,000 crore

-- A meeting of board of directors of REC scheduled to be held on July 10, 2019, to consider a proposal for raising of funds through issue of unsecured/secured non-convertible bonds/debentures through private placement, up to an amount of Rs 75,000 crore, in one or more tranches

Economic Survey Highlights: Bullish on growth despite tepid numbers

Economic Survey for 2018-19 was tabled in the Lok Sabha on Thursday, a day ahead of the presentation of the Union Budget for 2019-20. The Survey, which is the government’s report card for the year gone by and presents the health of the economy, comes at a time when the economy is slowing and consumption has staggered.
 
As per data released a few days ago, India's GDP growth came in at 5.8 per cent for the January – March quarter, sharply down from 6.6 per cent in the previous quarter, well below forecasts and the slowest in over four years. READ MORE

Quess Corp nears record low; stock tanks 11% on heavy volumes

Shares of Quess Corp were under pressure for the fourth straight trading day and tanked 11 per cent to Rs 462, also its 52-week low on the BSE on Thursday, on the back of heavy volumes. The stock was trading close to its all-time low price of Rs 452 touched on July 14, 2016. In the first four trading days of July, Quess Corp's market price has plunged 20 per cent, against 1.2 per cent rise in the benchmark S&P BSE Sensex. READ MORE

Chief Economic Advisor KV Subramanian on Economic Survey

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

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
A B B 1650.00 1653.55 42.85 2.67
ADANI POWER 66.05 66.85 0.25 0.38
BAJAJ FIN. 3719.05 3750.00 5.10 0.14
OBEROI REALTY 625.00 641.70 16.80 2.76
REC LTD 167.40 169.55 0.05 0.03
» More on 52 Week High

Economic Survey 2019: Economy expected to rebound; FY20 growth pegged at 7%

Economic Survey 2019, tabled in Parliament on Thursday, painted an optimistic picture of the Indian economy, projecting the country’s gross domestic product (GDP) would grow at seven per cent in 2019-20, against a five-year low of 6.8 per cent the previous year, with political stability aiding a pick-up in demand and investments. The forecast is the same as the Reserve Bank of India’s reading, which in June lowered its projection by 20 basis points from 7.2 per cent. READ MORE

Nifty PSU Bank index extends gain


DHFL seeks Rs 1,500 cr fresh loans a month to service Rs 80,000 cr debt

Dewan Housing Finance Corp., an Indian mortgage lender that has delayed payment on some of its obligations, plans to ask banks to lend Rs 15 billion ($217 million) every month to help revive the company, a person with knowledge of the proposal said. The financier, which has about Rs 800 billion of obligations, will submit the resolution plan on July 10 to a consortium of seven lenders led by state-run Union Bank of India, the person said, asking not to be identified as the discussions are private. READ MORE

Economic Survey on the importance of investment

Investment, especially private investment, is the “key driver” that drives demand, creates capacity, increases labour productivity, introduces new technology, allows creative destruction, and generates jobs. 

Economic Survey on inflation

Vodafone Idea gains over 6%


The cost of capital remains quite high in India, which affects investment prospects in the country: Economic Survey

-- Now that the foundations for expansion have been laid, it is now time to significantly lower the cost of capital.

Economic Survey on role of job creation and earnings

"Dwarfs, which we define as small firms that never grow beyond their small size, dominates the Indian economy and holds back job creation and productivity."

The Economic Survey "recommends focusing incentives on infant firms, i.e. firms less than ten years of age, with the appropriate grandfathering of the existing pattern of incentives to MSMEs....reforms of restrictive labour regulation can foster job creation and capital accumulation in the states. The labour law changes are crucial also because they can enhance investment."
 

Economic Survey on India's demographics

India has already entered this demographic phase of a high share of working age population, and will remain in this “demographic dividend” zone for over two decades."

".. keeping domestic interest rates high may not encourage savings behaviour; a mildly positive real rate is good enough."

Economic Survey on exports:

"While it is true that world trade is currently facing some disruptions, India’s share in global exports is so low that it should focus on market share."

Economic Survey about economic uncertainty:

"..economic policy uncertainty index must become an important index that policymakers at the highest level monitor on a quarterly basis."

Economic Survey about economic uncertainty:

" top-level policymakers must ensure that their policy actions are predictable, provide forward guidance on the stance of policy, maintain broad consistency in actual policy with the forward guidance, and reduce ambiguity/arbitrariness in policy implementation. To ensure predictability, the horizon over which policies will not be changed must be mandatorily specified so that investor can be provided the assurance about future policy certainty. While this will generate some constraints in policy making, such voluntary tying of policymakers’ hands is undertaken in several cases including the Fiscal Responsibility and Budget Management Act, the Monetary Policy Framework of the Reserve Bank of India."

Economic Survey | Investment-led growth


NEWS ALERT | Economic Survey provisionally estimates 2.9% growth rate for agri,forestry and fishing sector

NEWS ALERT | Need to focus on asset recycling and divestment: Amitabh Kant to CNBC TV18

-- Asset recycling is an immediate measure the govt can look at: Kant
CEO of NITI Aayog Amitabh Kant

NEWS ALERT | India needs sustained GDP growth rate of 8% to become a $5 trillion economy by 2025: Economic Survey

Bharti Airtel climbs over 2%


NEWS ALERT | India’s benchmark bond yield declines after govt tables economic policy in Lok Sabha: Bloombergquint

-- The 10-year bond yield fell two basis points to 6.81.

NEWS ALERT | Finance Minister Nirmala Sitharaman tables Economic Survey in Rajya Sabha

MARKET CHECK | Sensex up over 100 pts


Nifty sectoral indices at this hour


Kochhar, Videocon companies had appointed dummy directors: ED probe

Among others, Lakshmikant Sudhakar Katore, who was on board of Real Cleantech Private (RCPL), a Videocon group firm, was a gardener in the house of Venugopal Dhoot, chairman of Videocon Industries. Three others — Vivek Dattatraya Dharm, Kesharmal Nenusukhlal Gandhi and Chetan Ratansinh Mankerni — were on the board of Indian Refrigerator Company, another group firm of Videocon, also allegedly acted as dummy directors. READ MORE

Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
VODAFONE IDEA 12.53 0.61 5.12 3434632
I D F C 36.70 0.35 0.96 2558761
REL. COMM. 1.52 0.07 4.83 2302249
YES BANK 101.15 1.35 1.35 1824380
DEWAN HSG. FIN. 83.05 -0.20 -0.24 1280429
» More on Most Active Volume

Titan slips 1% after Morgan Stanley downgrades stock to 'equal weight'

Titan Company shares dipped 1.5 per cent to Rs 1,308 in early morning trade on the BSE on Thursday after global brokerge firm Morgan Stanley downgraded the stock from 'Overweight' to 'Equal Weight'. The financial services firm cited its reluctance to push multiples beyond current levels and less room for positive surprises from Titan in coming quarters as the reasons for the downgrade, as per a report by CNBC TV18. READ MORE

IndusInd Bank climbs 2.3%


NEWS ALERT | IndiaMART lists at Rs 1,201/share vs issue price of Rs 973/share


Economic Survey likely to have 8 to 9 out-of-box ideas for long-term growth

It will be a pro-poor Survey and adequate measures have been ticked in with out-of-box ideas on each of these areas. But it is agriculture and employment that is likely to have received the maximum attention of the CEA.
 
The Indian economy is at a 5-year low of 6.8 per cent in 2018-19 and the fourth quarter growth has slumped to 5.8 per cent which is a 17-quarter low. READ MORE

Uniply Industries surges 5% after Markab Capital acquires controlling stake

Uniply is an integrated architectural, design and build turnkey solutions provider in the residential and commercial sectors. The company offers an entire gamut of services from architectural design and build, mechanical, electrical, plumbing, interiors, and furniture. Uniply, headquartered in Mumbai has presence across major Indian cities such as Delhi, Pune, Bangalore, Chennai, Hyderabad and Ahmedabad. The company also has international presence in Dubai and Malaysia. READ MORE

APL Apollo Tubes rises over 2%


Stock Alert | IndiaMART settles at Rs 1,180 in pre-open on NSE

-- Issues price was Rs 973

-- Scrip lists today on exchanges

Dabur slips 0.8%


Market check | Sensex trading near day's high


NBCC gains nearly 3%


Adani Enterprises gains over 2%


Wockhardt gains over 1%


MT Educare hits 10% lower circuit


Corporation Bank zooms 10% on BSE


Nifty PSU Banks soaring; index up 2%


Nifty Metal index is the biggest loser during morning trade, down 0.35%


Nifty PSU Bank index is trading 1.8% higher


Cummins India trades over 2% lower


McLeod Russel dips over 3% on ratings downgrade by Icra

-- Rating agency Icra has downgraded McLeod Russel India's ratings on Rs 1,031 crore fund-based and non-fund based bank facilities to "default" or "D" category from B-/A4. It said that the rating revision factored in McLeod's recent delays in meeting debt obligations.


Cox & King locked in 5% lower circuit, hits 52-week low


Uniply Industries gains 5% in early trade


Allahabad Bank gains over 3% on reports of possible PSU recapitalization


Broader indices outperforming benchmark Nifty50


HCL Tech slips 0.6%


Dish TV gains over 1%

-- The promoters of direct-to-home (DTH) service provider Dish TV will be exiting the business by selling their stake to Airtel Digital TV, the DTH arm of telecom giant Bharti Airtel, according to a news report by Business Standard.


JSW Steel slips 0.6%


DHFL gains over 3%

-- Lenders to crisis-hit Dewan Housing Finance Corporation (DHFL), in the process of finalising a resolution plan, have discussed broad contours of a “binding agreement” that would lay down conditions for the promoters, led by Chairman and Managing Director Kapil Wadhawan


Titan slips nearly a per cent in early trade

-- Morgan Stanley has downgraded Titan with the target price of Rs 1,300 per share.


Sectoral trends on NSE


Top gainers and losers on S&P BSE Sensex


Market at open


Market at open


Momentum Picks by ICICI Securities


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


Rupee opening

Rupee opens higher at 68.82/$ vs Wednesday's close of 68.91 against the US dollar

Market at pre-open


Market at pre-open


Market outlook by HDFC Securities | Deepak Jasani, head of retail research

Indian markets could open mildly higher Thursday following record breaking US markets on Wednesday and positive Asian markets this morning. US markets would be shut on Thursday due to independence day.

Domestic indices ended with marginal gains on Wednesday. It was the third consecutive session of gains for the Nifty. Traders were cautious ahead of the presentation of the Economic Survey on Thursday, 4 July 2019, and that of Union Budget the following day.

Sectors and stocks to watch
 
In India markets could open mildly higher. PSU and FMCG indices could do well. On upside, Nifty could face resistance at 11,962-12,000 band while 11,831-11,885 band remains a support. Among stocks under coverage, SBI, NMDC, Brigade, SBI Life, Dabur, L&T, MCX could do well.
 

FMCGs say Q1 growth to remain dull on subdued consumption, liquidity crunch

Some of the country’s leading consumer goods companies have indicated in the just-released quarterly updates that the demand environment remains sluggish in the April-June period. The statements come after the sector saw its worst slowdown in two years in the March quarter. Many were hoping for a revival in sentiment following the general elections, but that isn’t the case as Godrej Consumer (GCPL) and Marico on Wednesday said demand conditions were challenging in Q1, impacted by a general consumption slowdown. READ MORE

Multiple triggers could boost Axis Bank's return ratios, say analysts

Outperforming closest peer ICICI Bank, the stock of Axis Bank has gained a sharp 30 per cent since the start of 2019, when the new Managing Director and Chief Executive Officer Amitabh Chaudhary took charge. Analysts highlight multiple triggers which could boost the bank’s return ratios going ahead. HDFC Securities’ Darpin Shah and Aakash Dattani believe that improving asset quality (with rising coverage), better risk practices, focus on high-yielding retail products, and cost consciousness will drive earnings. READ MORE

Stocks to watch

IndiaMART: IndiaMART InterMesh is slated to debut on the bourses today. The initial public offering (IPO) of the company, which was opened for subscription during June 24-26, was subscribed 36.21 times. The price band of the offer was fixed at Rs 970 - Rs 973 per share.
 
Cox & Kings: Lenders have turned cautious after Cox & Kings defaulted on commercial paper of Rs 200 crore in the last few days and are looking at ways to address the tour operator’s debt issues. READ MORE

Asset monetisation: Sadbhav group engineers 1.7 times return on investment

The much-awaited monetisation of assets has taken place at Sadbhav group. Sadbhav Infrastructure Projects (SIPL), a subsidiary of Sadbhav Engineering (SEL), will sell nine operational road projects to IndInfravit Trust, which will provide the funds needed for deleveraging. This will also help it infuse equity, fund new projects, and boost new order wins. READ MORE

Bond and currency markets differ on where interest rates are headed

There is a divergence between what the currency market thinks about interest rates and what the bond market perceives where rates are headed. While the bond market is relatively conservative about their interest rate expectations, the currency market seems to be projecting that interest rates should be much sharper. However, this could be an anomaly caused by local factors, which should correct in the coming months, experts say. READ MORE

Overseas investors can't ignore India if they seek higher returns: Manulife

Overseas investors chasing higher returns can’t ignore India’s stocks as its economy ranks among the world’s strongest and bears the fruit of government-led reforms, according to Manulife Asset Management.
 
“As China faces uncertainty after the trade war, money now needs to find a market that is large and growing, and India is among them,” Rana Gupta, managing director of Indian equities at Manulife Asset Management Singapore, said in an interview in Mumbai.  READ MORE

SBI MF, HDFC MF and ICICI MF gain the most in terms of absolute assets

Fund houses facing trouble over their debt exposures continued to see a sharp drop in assets in the June quarter. Their larger peers, though, increased market share as investors sought larger-sized schemes for liquidity comfort. IDBI Mutual Fund (MF) and DHFL Pramerica MF saw the sharpest de-growth in assets. READ MORE

Bulk deal on NSE as on Wednesday

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


Economic Survey FY19 coming today, to chart out Modi 2.0 reform road map

Ahead of Modi government's maiden Budget in the second term, an economic survey projecting the state of health of the country's economy and outlining the challenges will be tabled in Parliament on Thursday.
 
The survey prepared by Chief Economic Adviser Krishnamurthy Subramanian is likely to flag headwinds that the economy might face in its pursuit to become the world's fifth largest economy. READ MORE

India's market turnover among lowest globally, shows World Bank data

Indian market volume vis-à-vis the size of the market is the lowest amongst major global economies, shows World Bank data for 2018. The so-called turnover ratio (cash market turnover divided by market capitalisation) for India stands at 58. In comparison, the ratio stands at 109 for the US, 174 for South Korea and 206 for China. READ MORE

Ramp-up in capacity to keep fizz intact for Varun Beverages stock

Strong earnings visibility after the acquisition of PepsciCo India’s franchise rights has helped the Varun Beverages (Varun) stock gain about 20 per cent in the last six months, sharply outperforming the Nifty FMCG index. The latter lost 1 per cent during the same period.
 
On Wednesday, the stock hit its all-time high of Rs 969.9 apiece. Yet, the stock still has 15-20 per cent upside potential on the back of a likely improvement in return on equity (RoE).  READ MORE

India Inc's pace of debt fundraising may slow down over hike in rupee costs

India Inc.’s record pace of debt fundraising may be set to slow as a jump in hedging costs makes those deals more expensive.
 
Since the start of the year local companies have raised a record $12.9 billion via offshore bonds and $12.3 billion from loans, the highest in three years, according to data compiled by Bloomberg. Falling dollar borrowing costs and improved investor appetite for emerging-market debt have driven the spree. READ MORE

Top two trading ideas by Sacchitanand Uttekar of Tradebulls Securities

Nifty continues to retain its higher highs sequence for third straight trading session; however, so far it has lacked the required strength in momentum to surpass the resistance level of 12,000 which still has a strong hold by the call writers. Strong rollover data along with seasonality factor analysis for July compliments for a strong bull case scenario to unfold. It has been observed that 7/10 instances since 2008 the month of July have registered strong positive returns MoM (month-on-month).
 
Fanning of 5 and 20 Double Exponential Moving Average (DEMA) along with relative strength index (RSI) sustaining above 50 with fresh 14 periods high post retest of its signal line supports the overall setup for resumption of bullish momentum in the coming sessions. READ MORE

Top trading ideas by CapitalVia Global Research: Buy Adani Green, Thermex

BUY ADANI GREEN
 
CMP: Rs 52
 
Target: Rs 65
 
Stop Loss: Rs 44
 
The stock is in a continuous bullish trend. The level above 52 would also result into a multiple breakout on the charts as there is no real resistance above 52. Moving average and Oscillator setup is bullish on the short- and medium-term charts.
 
Considering this technical evidence, we recommend buying the stock at CMP for the target of Rs 65, keeping a stop loss at Rs 44 on closing basis. READ MORE

Rupee check

Source: Bloomberg


Oil check

At 8:00 am, Brent Crude Futures were trading at $63.37 per barrel

SGX Nifty

At 7:55 am, SGX Nifty was trading 14 points higher at 11,962 levels. 

Asian Markets check

Source: Reuters


US Market check

Source: Reuters


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