Indices snap 4-day losing streak, Sensex up 86 pts; Jet Airways tanks 40%

Benchmark indices halted their four-day losing streak to end Tuesday's session higher, lifted by gains in financials and IT stocks.

The benchmark S&P BSE Sensex rose 86 points, or 0.2 per cent, higher to 39,046, with Vedanta, Coal India, Power Grid, ICICI Bank, and HCL Tech among the top gainers. Out of the 30 BSE scrips, 20 ended the day in the green. Nearly 966 shares advanced, 1,571 declined, while 124 remained unchanged.

The broader Nifty50 index climbed 19 points, or 0.17 per cent, to 11,691.5.

Of the 11 Nifty sectoral indices, four ended the session in the red. Nifty IT index gained the highest 0.58 per cent, followed by Nifty Metal index, up 0.5 per cent.

In the broader market, the S&P BSE MidCap index ended the day at 11,543, up 12 points, or 0.08 per cent, while the S&P SmallCap index tumbled 60 points, or 0.4 per cent, to 14,113.

BUZZING STOCKS

Dabur India stocks slid 5 per cent to Rs 382 in morning deals on the BSE on Tuesday after global brokerage firm Goldman Sachs downgraded the stock to 'sell' from ‘neutral’. The stock ended the day 3.23 per cent lower at Rs 387.85. READ MORE

Shares of Jet Airways crashed 41 per cent to Rs 40.45 on Tuesday, after State Bank of India (SBI) - led lenders’ consortium moved National Company Law Tribunal (NCLT) to initiate insolvency proceedings against the airline. READ MORE

Shares of HDFC Asset Management Company (AMC) slipped 7 per cent to Rs 1,802 on the BSE on Tuesday after the company said it has offered exits to investors of some fixed-maturity plans (FMPs) by transferring Rs 500 crore worth of their exposures to Essel group firms on to its own books. READ MORE

4:06 PM IST COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%) ALEMBIC PHARMA 480.10 478.00 -9.45 -1.93 AMARA RAJA BATT. 602.30 594.60 0.85 0.14 BALKRISHNA INDS 738.75 727.05 -15.60 -2.07 BAYER CROP SCI. 3325.00 3325.00 -92.15 -2.70 BHARAT FORGE 439.35 437.20 -2.75 -0.62 » More on 52 Week Low

4:06 PM IST

4:04 PM IST

3:49 PM IST The S&P BSE Sensex ended at 39,046, up/ 86 points while the broader Nifty50 index settled at 11,692, up 19 points.

3:12 PM IST

3:09 PM IST Shares of YES Bank hit nearly five-year low of Rs 107, down 8 per cent on the BSE on Tuesday, falling 20 per cent in the past four days after global brokerage firm UBS cut the target price to Rs 90 from Rs 170. The stock of the private sector lender was trading at its lowest level since August 12, 2014. The foreign brokerage firm has maintained ‘sell’ rating on the stock saying sharp turnaround is less likely to fructify. It expects 255/200 basis points (bps) credit costs in FY20/21, higher than management guidance of 125 bps. NPL (non-performing loan) risks seem higher than current expectation, it said. READ MORE

3:03 PM IST The analysts added a 12% to 20% tariff hike could help offset the core business. "Though there are no signs of tariffs moving higher anytime soon," they said. In addition, the brokerage expects the downside risk to be lower at 9 per cent, if refining margins rebound. READ MORE

2:46 PM IST - Amount up to Rs 3000 cr to be raised through additional Tier I Basel III compliant perpetual bonds and another Rs 3000 cr via Tier II Basel III compliant bonds (Source: BSE filing)

2:44 PM IST HDFC AMC fell over 6% intraday as it offered exit to some investors of FMPs by transferring their Rs 500 Crs exposure on to its own books. This was a sentimentally bold move by HDFC AMC as investors were worried about their investments in the midst of this liquidity crises. However, investors should be aware that this is a one-off deal inked with Essel and there is always an implied risk with investments where the fund cannot always be the white-knight. However, HDFC AMC has taken a big risk as they have set a trend of assuming credit risks which could turn out to be dangerous in the long term, as this will set expectations for such bailouts in the future which is bad for the investors of HDFC AMC. Whether this event becomes a trendsetter for others too, only time will tell but the debt implosion situation is spreading like wild fire. Investors can take this as a red signal in listed AMC businesses for the moment but later after a decent correction can consider investing.

2:40 PM IST - Amount would include premium and would be raised by way of Qualified Institutional Placements(QIP)/Rights Issue/ESPS/ Private Placement/ Preferential allotment /any other approved means. (Source: BSE filing)

2:35 PM IST

LIVE UPDATES

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

COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%)
ALEMBIC PHARMA 480.10 478.00 -9.45 -1.93
AMARA RAJA BATT. 602.30 594.60 0.85 0.14
BALKRISHNA INDS 738.75 727.05 -15.60 -2.07
BAYER CROP SCI. 3325.00 3325.00 -92.15 -2.70
BHARAT FORGE 439.35 437.20 -2.75 -0.62
» More on 52 Week Low

Heatmap: S&P BSE Sensex


Market at close


Market at close

The S&P BSE Sensex ended at 39,046, up/ 86 points while the broader Nifty50 index settled at 11,692, up 19 points.

DHFL extends loss to 15%


YES Bank nears 5-year low; slips 20% in four days after UBS' downgrade

Shares of YES Bank hit nearly five-year low of Rs 107, down 8 per cent on the BSE on Tuesday, falling 20 per cent in the past four days after global brokerage firm UBS cut the target price to Rs 90 from Rs 170. The stock of the private sector lender was trading at its lowest level since August 12, 2014. The foreign brokerage firm has maintained ‘sell’ rating on the stock saying sharp turnaround is less likely to fructify. It expects 255/200 basis points (bps) credit costs in FY20/21, higher than management guidance of 125 bps. NPL (non-performing loan) risks seem higher than current expectation, it said. READ MORE


15% downside to RIL's earnings estimate, IMO 2020 key risk: JPMorgan

The analysts added a 12% to 20% tariff hike could help offset the core business. "Though there are no signs of tariffs moving higher anytime soon," they said. In addition, the brokerage expects the downside risk to be lower at 9 per cent, if refining margins rebound. READ MORE

NEWS ALERT | Canara Bank to raise Rs 6000 crore during the FY20

- Amount up to Rs 3000 cr to be raised through additional Tier I Basel III compliant perpetual bonds and another Rs 3000 cr via Tier II Basel III compliant bonds

(Source: BSE filing)

EXPERT COMMENT | HDFC AMC and its deal with Essel by Umesh Mehta, HoR, SAMCO Securities

HDFC AMC fell over 6% intraday as it offered exit to some investors of FMPs by transferring their Rs 500 Crs exposure on to its own books. This was a sentimentally bold move by HDFC AMC as investors were worried about their investments in the midst of this liquidity crises. However, investors should be aware that this is a one-off deal inked with Essel and there is always an implied risk with investments where the fund cannot always be the white-knight. However, HDFC AMC has taken a big risk as they have set a trend of assuming credit risks which could turn out to be dangerous in the long term, as this will set expectations for such bailouts in the future which is bad for the investors of HDFC AMC. Whether this event becomes a trendsetter for others too, only time will tell but the debt implosion situation is spreading like wild fire. Investors can take this as a red signal in listed AMC businesses for the moment but later after a decent correction can consider investing.

NEWS ALERT | Canara Bank board approves raising Rs 6000 cr via various means during FY20

- Amount would include premium and would be raised by way of Qualified Institutional Placements(QIP)/Rights Issue/ESPS/ Private Placement/
Preferential allotment /any other approved means.

(Source: BSE filing)

Stock Alert | DHFL is trading at day's low


NEWS ALERT | May Aviation Data :: Air India's market share dips marginally from 13.9% to 13.5% MoM

NEWS ALERT | May Aviation Data :: SpiceJet increases market share to 14.8%, up from 13.1% (MoM)

NEWS ALERT | May Aviation Data :: IndiGo retains highest market share at 49%

- It was 49.9% in April 2019

AAVAS Financiers hits fresh record high; stock zooms 132% in 7 months

Shares of the affordable housing finance company AAVAS Financiers hit a new high of Rs 1,559 apice, up 7 per cent, in intra-day trade on the BSE on Tuesday.It was trading at its highest level since its market debut on October 8, 2018. The scrip has zoomed 132 per cent in the past seven months, lifted by strong earnings. In comparison, the S&P BSE Sensex has rallied 10 per cent. READ MORE



MARKET CHECK


Reliance Infra dips 12%


Stock check | Jet Airways erases market cap of Rs 2,800 cr in six months

Jet Airways extends losses, tumbles 50%


Star Cement surges 13% as board mulls share buyback

Shares of Star Cement rallied 13 per cent to Rs 132 on the BSE in the intra-day trade on Tuesday after the company announced its board will meet on Friday, June 21, to consider share buyback proposal. “The meeting of the board of directors of the Company is scheduled on 21/06/2019, to consider and approve a proposal for buy-back of the Company's equity shares, constitution of buy- back committee and appointment of intermediaries in accordance with applicable provisions of laws,” Star Cement said in a regulatory filing. READ MORE


NEWS ALERT | Mishra Dhatu signs MoU with Hindustan Antibiotics

- To synergise manufacturing of biomedical implant

OMCs trade higher

COMPANY NAME LATEST HIGH LOW CHG
(rs)
CHG(%)
RELIANCE INDS. 1280.80 1287.60 1269.30 -0.70 -0.05
I O C L 157.35 157.50 153.90 1.75 1.12
O N G C 165.20 165.55 163.30 0.55 0.33
H P C L 302.65 303.40 295.30 7.85 2.66
INDRAPRASTHA GAS 341.35 342.35 335.10 8.05 2.42
B P C L 384.30 385.05 376.50 6.90 1.83
GAIL (INDIA) 308.10 308.40 304.25 2.20 0.72
PETRONET LNG 230.00 241.40 226.15 1.40 0.61
OIL INDIA 173.45 174.65 171.55 -0.90 -0.52
CASTROL INDIA 140.75 141.95 140.45 0.35 0.25

Indiabulls Housing Fin trading near day's low


Jet Airways slips 35% in trade


Market check | Sensex at day's high


NEWS ALERT | Star Cement board to mull share buyback on June 21: CNBC TV18

- Board to decide whether tol go for a 10% or 25% of networth as buyback limit

RInfra, Jet Airways among 54 stocks that tumbled up to 62% in 3 weeks

A slew of negative news and ratings downgrade have taken a toll on the Indian equities with 54 stocks seeing at least one-fourth of their market value getting eroded in the past three weeks. Among the shares trading on the S&P BSE Allcap index, Reliance Infrastructure (RInfra), Manpasand Beverages, Eros International Media, PC Jeweller, Jet Airways (India), Sintex Industries and Kridhan Infra have plunged in the range of 50 per cent to 62 per cent during the period. READ MORE



Fitch cuts India's GDP growth forecast to 6.6% for 2019-20 fiscal

Fitch Monday lowered India's growth forecast to 6.6 per cent for the current fiscal from 6.8 per cent projected earlier, as manufacturing and agriculture sectors showed signs of slowing down over the past year.
 
In its latest Global Economic Outlook, the global rating agency retained its GDP growth forecast for the next fiscal (2020-21) at 7.1 per cent and 7.0 per cent for 2021-22. READ MORE

Nifty PSU Bank index is trading 1% higher


Emkay Global on HDFC Standard Life Insurance

Reco: Hold
 
CMP: Rs 443  
 
Target Price: Rs 455
 
We believe that HDFCL should continue to lead in terms of product innovation while delivering superior VNB margins (led by its protection and annuity businesses). However, at current valuations, positives seem to be priced in the stock. Maintain Hold recommendation with a revised TP of Rs 455, implying 3.7x FY21E EV. Interest rates risk is the key risk with a scale up of guaranteed products.

Vedanta | Mixed picture awaits, says Edelweiss Securities

Going ahead, we expect performance at aluminium and oil & gas divisions to improve owing to cost control and higher production, respectively. However, lower LME Zn prices are expected to dent overall EBITDA. We maintain ‘HOLD/SP’ with TP of Rs 175/share, implying an exit multiple of 3.9x FY21E EBITDA.

Equirus Securities on IFB Industries

Despite healthy volume forecast for the coming years, we feel double-digit margins are a distant reality, even as there would be gradual margin expansion from FY20E after a difficult FY19. We feel the slew of measures taken by IFBI would take longer time for execution vs. our previous estimates. The recent stock correction offers a good entry point from a long-term perspective. With strong sales momentum and expectations of gradual margin expansion, we restate LONG with a Jun’20 TP of Rs 1,025 at 35x TTM EPS of Rs 29.3.

Wind capacity addition likely to improve to 3.5 – 4.0 GW in FY2020: ICRA

ICRA expects wind power capacity addition to increase to about 3.5 – 4.0 GW in FY2020, supported by the large project awards by the nodal agencies and measures being taken to address some of the key challenges. Since February 2017, the overall wind power capacity awarded by the central nodal agencies and the state distribution utilities has been sizeable at more than 12 GW, providing a visibility for substantial capacity addition. However, the actual execution on ground has been slow with only 1.6 GW added in FY2019, owing to delays in execution caused by land acquisition issues and securing transmission connectivity.

MARKET CHECK


Govt considers selling stake in weak banks, raise funds for rural housing

The proposal being considered involves offering a majority stake in some of the weaker banks and use the proceeds to fund Prime Minister Narendra Modi’s rural housing program, the people said, asking not to be identified as the proposal is at an early stage. The details are still being worked out and, if approved, it could be included in the budget to be unveiled on July 5, the people said. READ HERE

NEWS ALERT | Surya Roshni wins orders from Bharat Gas resources worth Rs 1.52bn


DHFL is trading 6.4% lower


NEWS ALERT | GST council to discuss taxing ENA at 18%: Govt official to CNBC TV18

Alert: ENA is Extra Neutral Alcohol

       : Next GST council meet on June 21

$40 billion in just 7 yrs! India's exotic funds, a time-bomb for investors

Even as the fate of India’s shadow banks swings precariously between unexpected defaults and sudden downgrades, there’s trouble brewing in another unlit corner of finance. Exotic funds, designed for wealthy investors, have grown to $40 billion from nothing in just seven years, expanding by 71% in the 12 months through March. Since September, when the surprise bankruptcy of infrastructure financier IL&FS Group triggered a refinancing squeeze for property developers, investors have committed an additional $9 billion to these so-called alternative investment funds. READ MORE

Illustration by Binay Sinha

AU Small Fin Bank gains over 1%


Dabur dips 5% after Goldman Sachs downgrades stock to sell

Dabur India stocks slid 5 per cent to Rs 382 in morning deals on the BSE on Tuesday after global brokerage firm Goldman Sachs downgraded the stock to 'sell' from ‘neutral’. The brokerage firm lowered the target price to Rs 334 from Rs 375 citing high exposure of Dabur India to the rural sector, and core categories -- juices, hair oil and oral care -- facing competitive intensity. READ MORE



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

COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%)
ALEMBIC PHARMA 482.10 482.10 -7.45 -1.52
AMARA RAJA BATT. 602.00 594.60 0.55 0.09
BAYER CROP SCI. 3337.00 3330.00 -80.15 -2.35
BIOCON 244.60 242.45 -1.20 -0.49
BOMBAY BURMAH 1065.05 1048.05 6.40 0.60
» More on 52 Week Low

Top gainers and losers on S&P BSE Sensex


Market check


Market check


Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
REL. COMM. 1.33 -0.07 -5.00 2889138
DEWAN HSG. FIN. 71.75 -4.75 -6.21 2302196
PC JEWELLER 46.95 -1.60 -3.30 1899715
YES BANK 116.70 0.50 0.43 1860779
JP ASSOCIATES 3.09 -0.32 -9.38 1535178
» More on Most Active Volume

Repro India rises over 3%

-  Approved the draft scheme of demerger between company and its wholly owned subsidiary company Repro Innovative Digiprint Limited (demerged company).



Edelweiss Securities on Coal India

While we believe FY20 volume growth of 8.9% is challenging, CIL will benefit from stable realisation as demand uptick in power and non-power sectors is expected to stay firm. With adequate balance sheet strength to fund capex and maintain dividend yield of 5% over the next two years, we believe risk-reward is balanced. We maintain ‘HOLD/SP’ with TP of Rs 263/share. The stock is currently trading at 9.7x FY21E EPS.

Edelweiss Securities on Dr Reddy's

Dr Reddy’s Laboratories (DRRD), sustaining its cost structure rationalisation drive, has divested two key neurology brands. We estimate this to add ~100bps to EBITDA margin as the company is likely to save ~USD25mn in commercialisation cost. This will also generate ~USD110mn in upfront consideration and milestone payments, which should eventually finance proprietary products’ (PP) R&D for the next two years—a step towards making PP business self sustainable. The deal entails potential to generate ~USD10mn annual royalty at its peak. We believe, an out-licensing deal lend credibility to DRRD’s product pipeline, whereas other Indian peers mainly in-license such specialty products. Maintain ‘BUY’ with target price of Rs 3,400.

Glenmark Pharma rises 2% in early trade


JP Associates slips 9%


Jet Airways tanks 10% as lenders move NCLT to initiate IBC proceedings

Shares of Jet Airways crashed 10 per cent in intra-day deals on Tuesday, after State Bank of India (SBI) - led lenders’ consortium moved National Company Law Tribunal (NCLT) to initiate insolvency proceedings against the airline.
 
At 9:37 am, the share of debt-laden airline was trading at Rs 61.5 apiece, down 9.96 per cent. In comparison, the S&P BSE Sensex was trading 0.14 per cent higher. The stock has tanked 53 per cent thus far in June, as compared to 1 per cent decline in the S&P BSE Sensex. READ MORE

MARKET UPDATE | Top losers on BSE at this hour

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
JP ASSOCIATES 2.96 -0.45 -13.20 756245
JET AIRWAYS 61.50 -6.80 -9.96 6597
REL. COMM. 1.33 -0.07 -5.00 2002905
MANPASAND BEVER. 29.45 -1.55 -5.00 461
DEWAN HSG. FIN. 73.00 -3.50 -4.58 409573

(Click to view the full list)

YES Bank plans to raise $1.2 bn to boost capital, says CEO Ravneet Gill

Gill took over in March pledging to improve transparency after his predecessor, founder Rana Kapoor, was forced out by the Indian central bank for inadequate disclosure of stressed loans. The new chief has had a tough ride as rising bad debts and an unexpected loss sent the stock down about 57 per cent this quarter, the worst performance among 569 lenders in Asia. CLICK TO READ FULL ARTICLE

Ranveer Gill

S&P BSE Consumers Index is trading 0.46% lower



HDFC Securities on Hexaware Technologies

RECO: BUY
 
TARGET PRICE: Rs 440
 
We increase revenue estimates by 5.6/9.2% for CY19/20E factoring in the Mobiquity acquisition and lower organic growth in CY20 (loss of a large net-new deal). Our CY20E EPS is unchanged (14.5% EPS CAGR over CY18-21E). Maintain BUY, with a target price of Rs 440, 16x Jun-21E EPS. Organic acceleration is expected in 2HCY19, supported by strengthening of the Adobe/Pega ecosystem and on deal momentum.

SpiceJet gains over 3%


Motilal Oswal Financial Services on Airtel Africa IPO plan

Given that typically pre-IPO happens at a discount to the IPO price, we were expecting the IPO price to be higher than that in the pre-IPO rounds. At FY21E
EBITDA of USD1.6b – factoring 10% CAGR over FY19-21, the IPO is priced at EV/EBITDA of 4.4x/4.8x at the lower/higher end of the band, much lower than our estimate of 7x. We have yet not adjusted our numbers but expect this to exert pressure on the company’s valuation. We maintain our Buy rating with SOTP-based target price of Rs 400.

Mcleod Russel slips over 4% on rating downgrade

- ICRA has downgraded ratings of the company


Reliance Home Fin slips over 7%


Jet Airways slips 10%


Motilal Oswal Financial Services on Coal India

We expect average e-auction realizations to decline by ~INR400/t in FY20 on the back of higher domestic availability and lower international coal prices. However, high natural attrition should continue driving operating efficiencies. The stock trades attractively at ~4x FY20E EV/adj. EBITDA (v/s historical average of 7x), P/E of 8-9x (v/s average of ~14x) and offers a dividend yield of ~8%. We value the stock on 5x FY20E EV/EBITDA at Rs 310. Maintain Buy.

Dabur sees sudden dip


HDFC AMC slips over 4%

- The AMC has offered exits to investors of some fixed-maturity plans (FMPs) by transferring Rs 500 crore worth of their exposures to Essel group firms on to its own books.


Momentum Picks by ICICI Securities


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


Market at pre-open


Rupee opening

Rupee opens stronger at 69.83/$ vs Monday's close of 69.90 against the US dollar

Market at pre-open


MARKET OUTLOOK | Deepak Jasani, Head Retail Research, HDFC Securities

Markets could open flat to mildly higher. IT and FMCG indices can do well while Banks, Auto indices could underperform. On upside, Nifty could face resistance at 11770, while 11,656 remains a support. Among stocks under coverage, Orient Cement, Supreme Petro, Infosys could do well.

SBI plans to mop up Rs 5,000-crore debt capital via tier-II bonds

State Bank of India (SBI), the country’s largest lender, plans to raise up to Rs 5,000 crore in debt to shore up capital adequacy and support business growth. The bank will issue Basel III compliant tier-II bonds to raise debt capital. India Ratings has assigned ‘AAA’ rating with stable outlook to the proposed bond offering. SBI remains a better capitalised public sector bank compared to its peers, with a common equity tier-1 (CET1) ratio of 9.62 per cent in FY19 (against 9.68 per cent in FY18). The tier-II capital was 2.07 per cent at end of March 2019 against 2.23 per cent in March 2018. READ MORE


Lower input costs may soften the impact of demand slowdown for paint firms

Lower input costs would help soften the impact of demand slowdown for paint companies. Brokerages had cut the net profit estimates of the listed paint companies after the March 2019 quarter (Q4) results due to the miss on profitability and volume growth. However, current prices of Brent are down 10 per cent from March 2019 level (22 per cent down from June 2018) and that of titanium dioxide or TiO2 have fallen 4 per cent (13 per cent down from June 2018). READ MORE


Markets waiting for revival; NBFC row can be resolved: UTI AMC's Ajay Tyagi

As expectations build around the upcoming Budget for the markets to take cues from the policies announced and decide their trajectory, AJAY TYAGI, executive vice-president and fund manager, equity, UTI AMC, tells Swati Verma that letting go of 3.4 per cent of the fiscal deficit target for this year won’t be a bad option. The priority, he says, is to arrest the declining growth momentum. READ MORE


Ajay Tyagi, UTI AMC

IndiGo moves away from Pratt & Whitney, places $20-bn order for CFM engines

IndiGo has ordered jet engines worth $20 billion from a joint venture of General Electric, US, and France’s Safran SA, the low-cost airline announced on Monday. With this, the biggest buyer of Airbus SE A320neo planes seems to be moving away from Pratt & Whitney engines, which have been experiencing glitches. The order for 280 engines to power Airbus A320neo and A321neo aircraft will include service and maintenance, the airline’s statement said. READ MORE




HDFC Securities on Hexaware Technologies

Hexaware Technologies

Recommendation: BUY
 
Target Price: Rs 440

CMP: Rs 345


We increase rev estimates by 5.6/9.2% for CY19/20E factoring the acquisition and lower organic growth in CY20 (loss of a large net-new deal). Our CY20E EPS is unchanged (14.5% EPS CAGR over CY18-21E). Maintain BUY, with TP of 440, 16x Jun-21E EPS. Organic acceleration is expected in 2HCY19, supported by strengthening of the Adobe/Pega ecosystem and on deal momentum.

DCC asks Trai to review Rs 3,050 crore penalty on Vodafone Idea and Airtel

Amid a financial stress in the sector, the DCC has sought the Trai to review the penalty amount.
 
A senior official of the department, said, “We have sent the matter to Trai for review.” He, however, did not divulge details on the quantum of penalty. In earlier meetings, the DCC had failed to take a decision on the matter. READ FULL STORY HERE

How serious is the NBFC crisis?

The RBI Governor said “adequate” liquidity would be available in the system for all productive purposes. What is adequate liquidity? The central bank appears to be guided by the call money rate, whether it is close to the repo rate or not. This may not be the right indicator for judging liquidity in relation to economic growth. READ MORE

Mid, small caps offer opportunities, but hold stocks for at least a year

As market pundits had predicted, the stock market rally has become broader after the Lok Sabha elections ushered in a stable government. And the positive sentiment seems to have rubbed off on retail investors as well. READ MORE

Over and out for Jet Airways as lenders start bankruptcy proceedings

The one-time premier airline, started more than 25 years ago, was grounded on April 17. Although it was termed temporary grounding because of severe cash crunch, Jet, with a debt of more than Rs 8,000 crore, never flew again, leaving more than 15,000 employees stranded and jobless. READ MORE

Today's picks: From JSW Steel to Titan, hot stocks to watch on Tuesday

JSW Steel
 
Current price: Rs 260
 
Target price: Rs 256
 
Keep a stop at Rs 262 and go short.
 
Add to the position between Rs 257-Rs 258. Book profits at Rs 256. READ MORE

Aluminium players mope over import spate, preferential treatment to steel

The Union government’s flurry of interventions — declaration of minimum import price (MIP), putting in place safeguard duties, hiking basic customs duties and anti-dumping duties – have led to steel imports tumbling by 21 per cent over the last three years.
 
But the aluminium industry, which has been stranded without government benefits, has seen imports soaring by 40 per cent in the comparable stretch of time. READ MORE

Sebi to tighten norms for MF industry's loan-against-shares exposure

The Securities and Exchange Board of India (Sebi) is likely to lay down a slew of measures to improve transparency and risk-management practices for the mutual fund (MF) industry’s loan-against-shares (LAS) exposure. READ MORE

Boeing records zero new plane orders in Paris, Airbus jumps ahead

Airbus SE cleaned up on the first day of the 2019 Paris Air Show, locking in $13 billion in orders for new jets to zero for Boeing Co., and introducing a long-range narrow-body meant to deflate enthusiasm for its U.S. rival's potential new midsize jet.
 
The Monday haul for Airbus featured major orders from Air Lease Corp., the influential U.S. leasing company, which agreed to buy planes worth $11 billion before customary discounts, including the new A321XLR. Virgin Atlantic Airways Ltd. bought eight A330 wide-bodies with options for six more. READ MORE

HDFC Mutual Fund takes Rs 500 crore of Essel group exposures on books

According to a disclosure made by the AMC, "The liquidity arrangement may involve an aggregate outlay not exceeding Rs 500 crore and will be put in place shortly... Provision of such liquidity arrangement will entail acquisition by the company of non-convertible debentures (NCDs) issued by Essel group companies held by such FMP schemes at prevailing valuation on respective maturity or purchase dates.". READ MORE

Nifty outlook by HDFC Securities

Markets ended sharply lower on Monday after a weak opening. Selling pressure was seen through the day in Banks, financials, metals and Auto among others. It was the second consecutive session of losses for the Nifty. While other Asian stock markets were weak, Indian shares outperformed them in terms of weakness which was largely due to local factors like NBFC issues not coming to an end, liquidity continuing to be tight etc. The Nifty index ended 151.15 points or 1.28% lower at 11,672.15. While Nifty closed below 11700, Sensex closed below 39000. Volumes on the NSE were low at Rs.28400 crore.

Technically, the Nifty is now in a short term downtrend and has also closed below its 50-day SMA. Traders will need to watch if the index can now hold above the crucial immediate supports of 11614; else a further correction is likely.

Tur dal price jumps 20% in past 2 months, hits Rs 100/kg in retail

Data compiled by the Union Ministry of Food, Consumer Affairs and Public Distribution showed the maximum tur dal prices across the country is at Rs 110 a kg on higher side and average or model price works out to Rs 90 a kg as on June 14, 2019. In south Indian markets also, tur dal is trading at above Rs 100 a kg. READ MORE

Derivatives strategies: Federal Reserve rate cut may lead to a Nifty rally

The market has slipped lower as global news is becoming gloomy. India-US are now in a trade war while the US-China tensions also continue. The US and Iran also appear to be on the verge of hostilities, with tankers attacked by unknown actors around the Straits of Hormuz, leading to fears of supply disruptions. READ MORE

Bulk deal on NSE as on Monday

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


Rupee check

Source: Bloomberg


Oil check

At 7:21 am, Brent Crude Futures were trading at $60.86 per barrel

SGX Nifty

At 7:20 am, SGX Nifty was trading 14 points higher at  11,712.5 levels.

Asian Markets check

Source: Reuters

 

US Market check

Source: Reuters

 

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