MARKET WRAP: Sensex down 87 pts, Nifty holds 11,550; banks dip, metals gain

Domestic indices ended Friday's choppy session in the negative territory. The markets remained range-bound, in the positive territory, for most part of the day but were dragged lower by index heavyweights like HDFC Bank, Axis Bank, Larsen & Toubro, and Bajaj Finance. 

The benchmark S&P BSE Sensex closed at 38,736 levels, down 87 points or 0.22 per cent. Among the gainers, YES Bank, Tata Steel, Sun Pharma and Vedanta topped the charts while ONGC, Bajaj Finance, ONGC and L&T were at the lower end of the spectrum. 

The broader Nifty50 too settled with cuts. The 50-share index settled at 11,552 levels, down 30 points, or 0.26 per cent. 

In the broader market, the BSE MidCap index ended 59 points, or 0.41 per cent, higher at 14,554 levels while the BSE SmallCap index closed 22 points, or 0.16 per cent, higher at 13,776 levels.

Sectorally, banking, financial services and FMCG counters were under pressure. The Nifty Bank index closed 0.37 per cent lower followed by Nifty Financial Services index, down 0.29 per cent. Among gainers, Nifty metals, pharma and realty counters were up between 0.4-0.7 per cent.

BUZZING STOCKS

Shares of KPR Mill dipped up to 6 per cent to Rs 570 in early morning deals on the BSE on Friday after the textile company withdrew buyback proposal due to the tax proposed on buyback obligations in the Finance Bill 2019. READ MORE

Shares of Eris Lifesciences hit a lifetime low of Rs 450, down 8 per cent in early morning trade, on the BSE on Friday as the pharmaceutical company's stock turned ex-date for buyback today. READ MORE

GLOBAL CUES

Asian shares pulled back on Friday as worries over renewed Sino-US trade tensions weighed on sentiment. 

In the commodities market, Brent Crude Futures were trading at $67 per barrel at 3:30 pm.

3:36 PM IST

3:35 PM IST

3:34 PM IST The S&P BSE Sensex slipped 87 points or 0.22 per cent to settle at 38,736 levels while NSE's Nifty50 index ended at 11,552.50, down 30 points or 0.26 per cent.

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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 slipped 87 points or 0.22 per cent to settle at 38,736 levels while NSE's Nifty50 index ended at 11,552.50, down 30 points or 0.26 per cent.

Market check


Market check | Sensex pares gains, trades flat


Nifty Metal index is trading over 1% higher


Dr Reddy's slips nearly 2%


NEWS ALERT | USFDA issues Form 483 with 5 observations for Dr Reddy's Hyderabad API unit

 
 
 

Result impact


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

COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%)
ASAHI INDIA GLAS 206.00 200.00 1.40 0.68
BLUE DART EXP. 2573.35 2573.35 -13.20 -0.51
CARE RATINGS 884.75 850.70 10.15 1.16
CENTURY PLY. 147.40 145.15 -1.55 -1.04
CG POWER & INDU. 21.20 21.15 -0.60 -2.75
» More on 52 Week Low

Nifty sectoral indices at this hour


Earnings Alert | IndusInd Bank's provisions & contingencies rise 23% YoY to Rs 430.62 crore

- NII grows 34% YoY to Rs 2843.99 crore. 

Earnings Alert | IndusInd Bank reports gross NPA at Rs 4,199 cr

-- Gross NPA ratio at 2.15%

-- Net NPA at Rs 2,380 cr

-- Net NPA rartio at 1.23% 

Deepak Spinners tanks 11%


Market check | Sensex reclaims 39k


Result impact | GNA Axles surges after Q1 nos

-- Net Profit at Rs 18.2 cr, up 30% YoY, from Rs 14 cr (Q1FY19)

-- Revenue at Rs 258.2 cr, up 21.4% YoY, from Rs 212.6 cr


NEWS ALERT | IEA maintains 2019 oil demand growth estimate at 1.2 mbpd and 1.4 mbpd for 2020: CNBC TV18

Alert: IEA is International Energy Agency

Quess Corp surges 18% on preferential share allotment to Amazon

Shares of Quess Corp zoomed by 18 per cent to Rs 521 in intra-day trade on the BSE on Friday in noon deal after the company announced its board approved preferential issue of equity shares to Amazon. “The board has approved issue of 754,437 equity shares of the Company to Amazon.com NV Investment Holdings LLC, a category Ill Foreign Portfolio Investor, for an aggregate amount of Rs 51 crore at an issue price of Rs 676 by way of a preferential allotment,” Quess Corp said in a regulatory filing. READ MORE

NEWS ALERT | TVS Motors launches India's first ethanol-based motorcycle Apache RTR-200 Fi E100

-- Priced at Rs 1.2 lakh/unit


Four reasons why this auto slowdown is different and the road ahead

During the month, domestic sales across passenger vehicles (PVs), commercial vehicles (CVs) as well as two- and three-wheelers fell 12 per cent year-on-year, industry body Society of Indian Automobile Manufacturer (Siam) said. The combined sales of all automobiles fell to 1.9 million units in June against 2. 2 million units a year ago. READ MORE

Market check


Index Alert | Nifty Bank index up 200 pts from lows


NEWS ALERT | Maintaining stability of Rupee will be key for growing economy to $5 trn: Subhash Chandra Garg, Finance secy

-- Govt will stay on course of fiscal discipline

(via BTVi)

NEWS ALERT | Divestment of 14 PSUs is at different stage: Divestment secy

-- Cos will have to meet minimum shareholding norms

-- 14 PSU Cos do not meet minimum public shareholding norms

-- ETF will get clubbed with equity-liked saving schemes, investors will get tax benefits

(As reported by BTVi)
 

NEWS ALERT | Jain Irrigation promoter releases pledge on 4.5 lakh shares on July 11


Tepid credit offtake, dipping tractor sales hint at farm sector slowdown

According to data from Tractor and Mechanization Association (TMA), tractor sales were down by around 17 per cent in the pre- monsoon month of May 2019 compared to May 2018. 
 
Further, latest data from the ministry of agriculture and farmers’ welfare, shows area under Kharif sowing as on June 21, 2019 was down by 32 per cent in the case of rice, about 50 per cent for pulses and by around 54 per cent for oilseeds year-on-year. The overall sowing was down by around 12 per cent. READ MORE

MARKET CHECK | Quess Corp zooms 18%


Den Networks rallies 11% as Co swings to profit in June quarter

The company declared a net profit of Rs 11.23 crore for the recently concluded quarter against a loss of Rs 30.72 crore in the year-ago period. The company had reported a net loss of Rs 1,86.38 crore in the quarter ended March, 2019. READ MORE

World needs India-US 'mahagathbandan' at every level: Mastercard CEO

What I want to really see is a time in the world when the two greatest democracies are engaging at every level-- socially, culturally, politically and economically, Banga said at the Second leadership Summit of US India Strategic and Partnership Forum on Thursday. READ MORE

NEWS ALERT | Future Consumer's promoter releases pledge on 32.7 lakh shares from July 4-9


NEWS ALERT | Gujarat Pollution Control Board revokes closure order for Dahej unit: Rallis India


MARKET CHECK | Top 5 gainers on BSE at this hour

BALRAMCHIN 154.90 +7.10 +4.80
GRAPHITE 298.00 +14.00 +4.93
 
PHILIPCARB 115.05 +6.95 +6.43
 
MFSL 435.00 +27.10 +6.64
 
QUESS 480.80 +40.65 +9.24
 

Edelweiss Securities on Metals & Mining sector

Domestic steel prices are under pressure for the sixth consecutive week now—fell below Rs 40,000/t for the first time since December 2017. This has led to raw material spreads plunging to two–years’ low. Coupled with onset of a seasonally weak demand period, we see further profitability headwinds, notwithstanding expectations of a weak Q1FY20E. On China front as well, price reaction has been tepid despite announcement of deepened production curbs in Wu’an city in Heibei province owing to inventory build up and weakening demand indicators. We retain our cautious view on the sector, though Jindal Steel & Power (JSPL) is expected to fare relatively better owing to capacity ramp up. Maintain ‘BUY’ on JSPL, ‘HOLD’ on Tata Steel & JSW Steel and ‘REDUCE’ on SAIL.

Reliance Securities on Maruti Suzuki India

Looking ahead, we expect Maruti Suzuki India (MSIL)’s volume to clock nearly 8% CAGR over FY19-FY21E. In view of better visibility on its BS-VI products and its affordable incremental pricing, we expect market share gain and margin improvement for MSIL, going forward. We expect MSIL’s EBIDTA margins to improve to 13.5% in FY21E from current ~10%. Expecting meaningful improvement in rural demand, strong product pipeline and attractive valuation, we maintain our positive stance on the stock.

US to seek tariff rollback on agri products in today's trade talks: Report

A delegation led by Assistant US Trade Representative for South and Central Asia, Christopher Wilson, will meet Indian officials to try to re-start negotiations on the tariffs, which were response to the US removing some trade privileges from Indian products. CLICK TO READ FULL REPORT

MARKET UPDATE | S&P BSE Metal index gains over 1%; Jindal Steel jumps nearly 4%


MOFSL on Tata Motors

A sustainable recovery in volumes at JLR, particularly in the profitable markets of China, along with the ongoing cost cutting initiatives, is key to value-accretive growth and stock performance. This is particularly important due to the impending downcycle in the cash-cow India CV business in FY21. The stock trades at 11.8x/10.2x FY20/21E consol. EPS. Maintain Neutral with a target price of Rs 183 (Mar’21 SOTP-based).

Prabhudas Lilladher on Emami

Rating: ACCUMULATE
 
CMP: Rs 301 
 
TP: Rs 382
 
We cut Emami's EPS estimate by 8.8 per cent and 11 per cent for FY20 and FY21 due to: 
 
- muted demand environment in rural India (~50% of sales);
 
- adverse impact of seasonality;
 
- structural growth issues in F&H and Boroplus; and 
 
- margin pressures due to high Mentha prices.

Momentum picks by ICICI Securities


Hathway Cable gains over 5% ahead of June quarter result


Eris Lifesciences hits record low as stock turns ex-date for share buyback

Shares of Eris Lifesciences hit a lifetime low of Rs 450, down 8 per cent in early morning trade, on the BSE on Friday as the pharmaceutical company's stock turned ex-date for buyback today.
 
The company has fixed Monday, July 15, 2019 as the record date for the purpose of determining the entitlement and the names of equity shareholders who are eligible to participate in the bbuyback on a proportionate basis through "Tender Offer" route. READ MORE

Quess Corp soars sharply


NEWS ALERT Quess Corp board approves pref issue worth Rs 51 cr at Rs 676/Sh to Amazon.com NV Investment Holding


Buzzing | Adani Power sees sharp surge


Budget impact: KPR Mill withdraws share buyback proposal, stock dips 6%

Shares of KPR Mill dipped up to 6 per cent to Rs 570 in early morning deals on the BSE on Friday after the textile company withdrew buyback proposal due to the tax proposed on buyback obligations in the Finance Bill 2019. The company had proposed (on April 18, 2019) and approved (on April 30, 2019) buyback of 3.75 million equity shares, representing 5.17 per cent of the total share capital, at a price of Rs 702 per share for a consideration not exceeding Rs 263.31 crore. READ MORE

MARKET CHECK


Metropolis Healthcare climbs over 4%


Den Networks gains after reporting Rs 30.7 cr profit in June quarter


Market check


Market check


Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
REL. COMM. 1.84 0.04 2.22 1419378
DISH TV 30.70 0.40 1.32 631533
YES BANK 92.70 0.30 0.32 578765
O N G C 152.80 -0.20 -0.13 485730
SPICEJET 122.00 1.95 1.62 476021
» More on Most Active Volume

Himachal Futuristic Communications gains 1.6%


ACC gains 1.4%


KPR Mill slips after withdrawing proposed buyback of shares


Éris Lifesciences dips 6%


DHFL slips despite company's clarification on reports of auditors resigning


NEWS ALERT | Tata Comm, Thales join forces to address businesses’ data security concerns around IoT


Apollo Hospitals gains over 2%


Sectoral trends on NSE at this hour | Nifty indices turn red


BSE Oil & Gas index is trading 0.30% higher


Nifty PSU Bank index slips 0.4%


Axis Bank dips marginally


IndusInd Bank holds gains ahead of earnings


IndiGo gains over 1% in morning deals


Bharti Airtel trades 0.8% lower


Brigade Enterprises slip over 1%


Broader market check


Infosys holds gains ahead of Q1FY20 numbers


Bajaj Finance trades lower


Titan trades flat in morning deals


Tata Motors dip 1.3%


GTPL Hathway extends rally


Sectoral trends on NSE


Top gainers and losers on S&P BSE Sensex


Market at open


Market at open


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


Market at pre-open


Rupee opening

Rupee opens flat at 68.45/$ vs Thursday's close of 68.44 against the US dollar

Market at pre-open


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

Indian markets could open flat to mildly lower on Friday following positive US markets overnight and rangebound Asian markets this morning. It could later attempt to cross 11600 and gain some more. Last week the Nifty closed at 10811. China trade data and India IIP and CPI numbers are due today.

Technically, the Nifty could now face resistance at 11,627-11,648 band, while 11,536 could provide support. Auto,

Sectors and stocks to watch

Metals and Healthcare indices could do well.  Among stock under coverage, Majesco, SBI, Dr Reddys, Birla Corp, Bharat Forge, Indusind Bank, DCB Bank could do well.

Stocks to watch

Infosys: IT bellwether Infosys is slated to release its June 2019 quarter (April-June) results of the financial year 2019-20 (Q1FY20) on Friday. Net profit is expected to fall 11 per cent QoQ to Rs 3,645.4 crore. On year-on-year (YoY) basis, the numbers are expected to grow 1 per cent. Net revenue is likely to increase 1 per cent QoQ (13.7 per cent YoY) to Rs 21,746.8 crore, as per analysts.
 
IndiGo: As per a Mint report, Sebi is probing to find out if the company misled investors by downplaying the true extent of differences between the co-founders of the airline. READ MORE

Budget seems to indicate outlook on fiscal prudence: Temasek's top brass

Singapore government-owned private equity firm Temasek had moderated its investments in India, considering global challenges and their impact on India. However, its exposure to India as a share of its overall portfolio rose from 4 per cent to 5 per cent ($11 billion) in FY19. Speaking to Jash Kriplani, Promeet Ghosh, deputy head of Temasek India, and R Venkatesh, managing director, share what led to the change in investment stance and how they see consumption and other segments getting affected from the NBFC crisis. READ MORE
Promeet Ghosh (right), deputy head of Temasek India, and R Venkatesh (LEFT), managing directo

Will Infosys Q1 results beat TCS' numbers? Here's what analysts say

After Tata Consultancy Services (TCS) missed Street estimates on revenue and margin front, all eyes are now on Infosys that is slated to release its June 2019 quarter (April-June) results of the financial year 2019-20 (Q1FY20) on Friday. In line with TCS, Infosys, too, is likely to take a hit on EBIT (earnings before interest and tax) margin, owing to wage hikes, rupee appreciation and the ongoing investments, analysts say. READ MORE

How regulators, agencies are hurting India's war on $190-billion bad loans

A spate of legal challenges mounted by the country’s markets regulator, anti-money-laundering agency and its tax department accentuate conflicts between bankruptcy law and other regulations that pre-date them. In many cases, the court battles being fought by these agencies to hang on to powers to seize and sell assets of those violating their rules are derailing a 270-day resolution deadline set by the insolvency law. READ MORE

Budget impact: Higher public float may not be tax-accretive for Centre

Higher weight in global indices, better price discovery, more control to minority shareholders, and windfall tax mobilisation on account of long-term capital gains (LTCG) booked by promoters, are among the benefits being talked about following the proposal to increase minimum public shareholding in listed firms to 35 per cent, from 25 per cent at present. The higher float may end up benefitting minority shareholders. READ MORE

Street plugs into NTPC, PowerGrid Corp despite structural challenges

If any, Union Budget 2019 wasn’t directionally encouraging for the traditional coal-fed power plants as the minister emphasised the intent to shift to alternative energy, a factor detrimental to the industry as a whole and particularly for NTPC, given that it is India’s largest power producer with significant thermal concentration. READ MORE

Reliance Infra lenders sign debt resolution pact; stock jumps nearly 11%

“RInfra’s 16 lenders have signed the ICA. In accordance with the Reserve Bank of India’s (RBI’s) circular of June 7, 2019, 100 per cent of its lenders have signed the ICA for the resolution of RInfra’s debt,” the company said in a statement. “RInfra has now achieved standstill for 180 days. According to the RBI circular, the resolution plan is to be implemented within 180 days.” READ MORE

Rising import from Bangladesh, financial crisis at NBFC hit textile sector

The industry says sales in the domestic market have slumped by 20-25 per cent in recent weeks. To enhance liquidity from existing resources, many brought forward the usual ‘end of season’ sale by two weeks, to around the second week of June this year as compared to the first week of July or even after in past years. READ MORE

Fed chairman Jerome Powell gives EM peers strong reason to cut rates

His signal on Wednesday that the Fed is preparing to lower borrowing costs for the first time in a decade is supportive of higher-yielding currencies, which in turn allows monetary authorities in developing markets to ease policy without triggering an exodus of capital. READ MORE

US, India trade talks to restart after Donald Trump's tariff tweets

US trade officials will restart talks with their Indian counterparts on Friday amid uncertainty over issues ranging from data localisation and India’s retail policies to recent tariffs imposed by the South Asian nation.
 
US President Donald Trump (pictured) had earlier this week criticised India’s decision to impose higher tariffs on a slew of American goods. His trade officials are in New Delhi to meet foreign and trade ministry officials, according to Raveesh Kumar, foreign ministry spokesman. READ MORE

Financial services firms may raise record Rs 1.2 trn via QIPs this year

A clutch of financial services firms and companies involved in capital-intensive businesses are lining up for qualified institutional placements (QIPs) to shore up capital and retire debt. In the past few months, 45 companies have signalled their intent to raise money through the institutional placement route. READ MORE

Commodity outlook by Tradebulls Securities: Buy zinc, sell silver

Gold speculators has increased their bullish bets to highest since 2016. Starting from this week, the yellow metal was on the back foot due to recent supportive data of US jobs number which reduced the expectation of an aggressive rate cut from the US Fed. However, recent statement by the Fed chairman Jerome Powell boosted all precious metals and equity market. The text suggested June FOMC meeting uncertainties, world trade tension, low inflation and gloom outlook of US economy. CLICK HERE FOR MORE DETAILS

Derivative strategy on Sun Pharma by HDFC Securities

Bull Spread strategy on Sun Pharma
 
Buy Sun Pharma July 400 Call at Rs 10; Lot size: 1,100
 
Target: Rs 420 call at Rs 3.6.
 
Cost of the strategy Rs 6.4 (Rs 7,040 per strategy)
 
Maximum profit: Rs 14,960 If Sun Pharma closes at or above 420 on July expiry.
 
Break-even Point: Rs 406.4
 
Rationale:
 
Long build-up is seen in the Sun Pharma Futures’ yesterday, where we have seen rise in Open Interest with price rising by 1.5 per cent.
 
Stock price formed double bottom around 367 levels and reversed nothwards to close above its 5 and 20 day SMA.
 
Oscillators and Momentum Indicators like RSI and MACD showing strength in the stock on the daily and weekly charts.
 
In the Option segment, we have seen Open Interest addition at 430-440 levels

Bulk deal on NSE as on Thursday

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


SGX Nifty

At 8:00 am, SGX Nifty was trading 11 points lower at 11,571 levels, indicating a flat start for the indices with negative bias

Rupee check

Source: Bloomberg


Oil check

Oil prices rose on Friday as U.S. oil producers in the Gulf of Mexico cut more than half their output in the face of a tropical storm and as tensions continued in the Middle East.

Brent crude LCOc1 futures were up 37 cents, or 0.6%, at $66.89 per barrel. The international benchmark settled down 0.7 per cent on Thursday after hitting its highest since May 30 at $67.52 a barrel. US West Texas Intermediate (WTI) crude futures were up 34 cents, or 0.6 per cent, at $60.54 a barrel.
Representative image

Asian Markets check


US Market check


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