MARKET WRAP: Sensex slips 48 pts, settles below 38,000-mark; PSBs tank

Indices slipped for fourth consecutive session on Tuesday as weak corporate earnings, hinting at an economic slowdown, kept investors' sentiment muted. Heavy selling in select bluechip stocks like HDFC twins and State Bank of India (down 2 per cent each), and Reliance Industries and HCL Tech (down 1 per cent each) dragged indices lower during the last hour of trade.

The benchmark S&P BSE Sensex settled below the 38,000 mark at 37,983 levels, down 48 points, or 0.13 per cent. State Bank of India (SBI), HDFC, Bajaj Auto, and HDFC Bank tumbled the most on the 30-share index while Power Grid Corporation, Hero Moto Corp, ITC, and Asian Paints closed the day as the top gainers. The broader Nifty50, too, ended at 11,331 mark, down 15 points, or 0.13 per cent.

In the broader market, S&P BSE MidCap closed at 13,915 levels, down 79 points, or 0.56 per cent while the S&P BSE SmallCap index gained 49 points, or 0.38 per cent, to settle at 13,206 levels. 

Indian investors bucked the trend being witnessed in Asian markets and focused on domestic factors to steer through the trade. The sentiment remained negative on the back of heavy selling by foreign investors post Budget announcement and negative management commentary during the quarterly results.

Sectorally, NIfty IT index traded in the green through the day on a weaker rupee. At close, Nifty PSU Banks were the biggest losers, with the index settling over 3 per cent lower followed by Nifty Financial Services index (down 0.72 per cent) and Nifty Pharma index (down 0.70 per cent). Nifty Realty index was the gainer at close, up 0.99 per cent, followed by Nifty IT index (up 0.29 per cent).

BUZZING STOCKS

Shares of TVS Motor Company hit an over two-year low of Rs 361, down 5 per cent in Tuesday's early morning trade on the BSE after reporting a 3 per cent decline in net profit at Rs 142 crore for the first quarter of fiscal 2020 (Q1FY20), on muted volume, and higher depreciation, interest cost and tax rate. READ MORE

GLOBAL CUES

A wave of central bank easing and positive soundings from the earnings season buoyed world stocks on Tuesday. Japan's Nikkei closed 0.95 per cent higher while South Korea's Kospi ended the day with gains of 0.39 per cent. China's Shanghai Composite also settled 0.45 per cent higher. 

(With inputs from Reuters)


3:43 PM IST

3:42 PM IST

3:37 PM IST The S&P BSE Sensex slipped 48 points or 0.13 per cent to settle at 37,983 while Nifty ended at 11,331 levels, down 15 points or 0.13 per cent. 

3:28 PM IST European stocks advanced alongside shares in Asia and U.S. equity futures Tuesday amid a busy week of corporate earnings and potential developments in trade negotiations. DAX Index gained nearly 1%. FTSE and CAC Index is up 0.5%. #MOMarketUpdates— Motilal Oswal Financial Services Ltd (@MotilalOswalLtd) July 23, 2019

3:22 PM IST

3:13 PM IST The bank's total income declined six per cent to Rs 5,006.48 crore during the quarter, from as Rs 5,326.71 crore during the corresponding quarter of previous year.   Its gross non-performing assets (NPA) as a percentage of gross advances declined to 22.53 per cent (Rs 33,262 crore) from 25.64 per cent (Rs 38,146.05 crore) a year ago. Net NPA also has declined to 11.04 per cent (Rs 14,173.84 crore) from 15.10 per cent (Rs 19,641.81 crore) during corresponding quarter last year. READ MORE

3:00 PM IST

2:51 PM IST Infosys shares hit an all-time high of Rs 804 apiece, up 2 per cent, in intra-day trade on the BSE on Tuesday in an otherwise subdued market. The stock surpassed its previous high of Rs 799 touched on July 18, and crossed the share buyback price of Rs 800 per share. In the past seven trading days, the stock has outpaced the market by surging 11 per cent on upward revision of the revenue guidance in constant currency terms for the financial year 2019-20 (FY20) to 8.5-10 per cent from 7.5-9.5 per cent as guided earlier. READ MORE

2:48 PM IST

2:40 PM IST PMorgan Chase & Co.’s chairman for south and south-east Asia, Kalpana Morparia, is advising policy makers to tweak bankruptcy rules to let foreign portfolio managers throw a lifeline to the troubled shadow banking sector. The overseas investors could also step in to fill the financing void left by the non-bank lenders, she said in a recent interview.   The cash squeeze in the financial system triggered by the default of infrastructure financier IL&FS Group last year has already taken a toll on the country’s economic growth and has policy makers looking for ways to avert contagion. Shadow lenders like Dewan Housing Finance Corp. and Reliance Capital Ltd. are resorting to fire sales of assets to survive the credit crunch. READ MORE

2:35 PM IST Expectations that the European Central Bank and Federal Reserve will cut interest rates boosted stocks globally. In early European trade, pan-region Euro Stoxx 50 futures rose 0.46 per cent while German DAX futures climbed 0.57 per cent and FTSE futures 0.40 per cent.   In Asia, Japan’s Nikkei rose 0.95 per cent while MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.04 per cent. The Shanghai Composite Index edged up 0.15 per cent. Australian stocks added 0.4 per cent and South Korea’s gained 0.45 per cent.

2:23 PM IST

LIVE UPDATES

Sectoral gainers and losers on the NSE


Top losers and gainers on the S&P BSE Sensex


CLOSING BELL

The S&P BSE Sensex slipped 48 points or 0.13 per cent to settle at 37,983 while Nifty ended at 11,331 levels, down 15 points or 0.13 per cent. 

Global market update | Prabhudas Lilladher

Index Contributors at this hour


IOB's June quarter loss narrows to Rs 342 cr, from Rs 919 cr last year

The bank's total income declined six per cent to Rs 5,006.48 crore during the quarter, from as Rs 5,326.71 crore during the corresponding quarter of previous year.
 
Its gross non-performing assets (NPA) as a percentage of gross advances declined to 22.53 per cent (Rs 33,262 crore) from 25.64 per cent (Rs 38,146.05 crore) a year ago. Net NPA also has declined to 11.04 per cent (Rs 14,173.84 crore) from 15.10 per cent (Rs 19,641.81 crore) during corresponding quarter last year. READ MORE

Market check | Sensex sheds over 300 pts intra-day from highs


Infosys hits record high in subdued market, up 11% in 7 days post Q1 nos

Infosys shares hit an all-time high of Rs 804 apiece, up 2 per cent, in intra-day trade on the BSE on Tuesday in an otherwise subdued market. The stock surpassed its previous high of Rs 799 touched on July 18, and crossed the share buyback price of Rs 800 per share. In the past seven trading days, the stock has outpaced the market by surging 11 per cent on upward revision of the revenue guidance in constant currency terms for the financial year 2019-20 (FY20) to 8.5-10 per cent from 7.5-9.5 per cent as guided earlier. READ MORE

Sector watch | Nifty PSU Banks' index slide, down 3%


FPIs could be the panacea for India's credit crisis: JPMorgan

PMorgan Chase & Co.’s chairman for south and south-east Asia, Kalpana Morparia, is advising policy makers to tweak bankruptcy rules to let foreign portfolio managers throw a lifeline to the troubled shadow banking sector. The overseas investors could also step in to fill the financing void left by the non-bank lenders, she said in a recent interview.
 
The cash squeeze in the financial system triggered by the default of infrastructure financier IL&FS Group last year has already taken a toll on the country’s economic growth and has policy makers looking for ways to avert contagion. Shadow lenders like Dewan Housing Finance Corp. and Reliance Capital Ltd. are resorting to fire sales of assets to survive the credit crunch. READ MORE

ECB, Fed rate cut hopes lift global stocks

Expectations that the European Central Bank and Federal Reserve will cut interest rates boosted stocks globally. In early European trade, pan-region Euro Stoxx 50 futures rose 0.46 per cent while German DAX futures climbed 0.57 per cent and FTSE futures 0.40 per cent.
 
In Asia, Japan’s Nikkei rose 0.95 per cent while MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.04 per cent. The Shanghai Composite Index edged up 0.15 per cent. Australian stocks added 0.4 per cent and South Korea’s gained 0.45 per cent.

Market check


Sudden spike in Jindal Steel Plant Limited


NEWS ALERT | South Africa grants Vedanta application on Konkola Copper Mines: Agencies, reports ET Now


Sovereign bond yields to consolidate ahead of monetary policy review: DBS

"Indications of a pause in the rate-cutting cycle and 30 bp slip in yields since the Budget, stoked profit-taking trades," wrote the bank's Economist Radhika Rao and FX Strategist Philip Wee.
 
The duo further added that the RBI Governor's comments that policy stance here on will depend on incoming data, nudged traders to pare easing expectations. READ MORE

Market check


Result impact | Kajaria Ceramics dips over 2%

-- Q1 net profit at Rs 57 cr, down 17% QoQ



DCC may take call on Rs 3,050-cr fine on Airtel, Voda-Idea after July 24

At the upcoming meeting of the Digital Communications Commission (DCC) slated to be held on July 24, the top agenda will be a discussion on whether it will agree with the recommendation of the Telecom Regulatory Authority of India (Trai) to impose over Rs 3,050 crore of penalty against Airtel and Vodafone-Idea for non-compliance of the terms and conditions of the telecom licence or find justification for reducing the quantum of fine that the telcos have to fork out. READ MORE

Maruti, Hyundai skip rural slump, manage to increase sales in FY19

Both companies are optimistic about 2019-20, too, with the raising of rural allocations in the Union Budget and higher Minimum Support Prices. That means more of rural disposable income.
 
Maruti Suzuki’s (the country’s largest car maker) rural sales in 2018-19 rose to 205,000 units or 39 per cent of sales. A year before, it was around 165,000 units or 37 per cent of sales. This year’s outcome will depend on the monsoon, farm output and how rural sales pick up. READ MORE

Kotak Mahindra Bank extends gain to over 3%, top gainer on S&P BSE Sensex


HDFC Life Insurance gains post Q1 results


Earnings Alert | HDFC Life Q1 results

-- Consolidated net profit up 11.8% at Rs 425.7 cr vs Rs 380.6 cr (YoY)
 
-- Individual APE up 64% at Rs Rs 1,378 cr vs Rs 840 cr (YoY)
 
-- New Biz margin at 29.8% vs 24.2% (YoY)
 
-- AUM growth at 18% YoY

HT Media's stock post Q1 results


Earnings Alert | HT Media Q1 results

-- Consolidated EBITDA up 13.8% at Rs 41 crore vs Rs 36 cr (YoY)
 
-- Net loss at Rs 155.3 cr vs profit of Rs 1.2 cr (YoY)
 
-- Consolidated EBITDA margin at 7.6% vs 6.6% (YoY)
 
-- One-time loss at Rs 176.3 cr
 
-- Consolidated revenue down 1.1% at Rs 540.2 cr (YoY)

NEWS ALERT | DHFL promoters and lenders to meet on Thursday: sources to BTVi

-- Final resolution plan likely to be announced on July 26
 
-- DHFL to also finalise new investor for stake sale

Earnings Alert | IOB says loss in Q1 incurred due to provisions, not operations


Earnings Alert | Indian Overseas Bank Q1 result

-- Net Loss at Rs 342 Cr vs Loss af Rs 919 cr YoY 

-- Gross NPA at Rs 33,262 cr vs Rs 33,398 cr (QoQ) 

-- Net NPA at Rs 14,47 cr vs Rs 14,368 cr (QoQ)

-- Provisions at Rs 1,158 cr vs Rs 2,401 cr (YoY)

-- Global NIM at 2.01%

-- Recovery at Rs 2,238 cr


Buzzing | Mindtree rises ahead of Q1 earnings by L&T


HDFC Securities on Mastek

Recommendation: BUY

CMP: Rs 460

Target Price: Rs 618

Mastek has successfully ramped up UK Govt. digital business (+6.9% 4-QTR CQGR). Mastek is the only Indian IT company in UK Govt’s top-10 vendors list. We also like its initial success in recovering the US business (+8.7% QoQ) led by increased focus and management changes. Mastek is blessed with low exposure to legacy (~16% of rev) and can deliver 11.4/8.6% GBP rev/EPS CAGR over FY19-21E. Its stake in Majesco US (Rs 94/sh) and net cash (~Rs 67/sh) provide additional comfort. Risks to our thesis include prolonged deferment of spend in UK private due to Brexit and GBP depreciation.

Market check


Market check


IIFL on ICICI Lombard

Recommendation: BUY

CMP: Rs 1,092

Target Price: Rs 1,300 

ICICI Lombard (ILOM) reported in-line 1QFY20 results, with GDPI growth at 17.7% ex-crop, much higher than the industry at 13.6%, gaining share through motor and health segments. Combined ratios worsened by 80bps QoQ, due to continuing new business strain from long term TP business, resulting in 7% PAT growth, in line with our expectations. Motor grew 14% YoY, as TP segment continued its strong trajectory (17% YoY) despite no price hike in TP rates for the large part of the quarter. Changing regulations, improving competitive dynamics and conservative strategy favouring profitability over growthby avoiding businesses such as crop provide strong earnings visibility, in our view. Hence, we forecast GDPI/EPS Cagr of 12%/33% over FY19-21ii. We expect ~530bps improvement in its RoE, to 26.6% by FY21ii (6.8x P/B). Reiterate Buy.

Edelweiss on InterGlobe Aviation

Recommendation: HOLD

CMP: Rs 1,463

Target Price: Rs 1,421

Overhang of the promoter dispute continues to loom with little clarity on a resolution emerging post the results call. While IndiGo continues to deliver earnings, we would recommend a cautious approach in the light of recent concerns on governance. With limited upside from Jet’s slot redistribution, the potential for earnings upgrade remains limited. We maintain ‘HOLD/SP’ with TP of INR1,421 (7.5x FY21E EV/EBITDAR).

Edelweiss on Future Lifestyle Fashions

Recommendation: BUY

CMP: Rs 450

Target Price: Rs 564

We estimate ~5.5/10% SSSG in Central/ BF over in FY20 and 21 aided by strong format pull and better execution. On account of sharpened focus on power brands, we expect overall revenue and margin expansion to also sustain. Rolling forward, we arrive at revised TP of INR564 (INR563 earlier). We maintain ‘BUY/SP’. At CMP, the stock is trading at 7.4x FY21E EV/EBITDA (adjusted for IND-AS 116).

NEWS ALERT | HDFC Bank fixes August 2 as record date for special interim dividend payment

RBI dismissed IL&FS suggestion for more funds for infra holding companies

The Reserve Bank of India (RBI) rejected Infrastructure Leasing and Financial Services’ (IL&FS’s) suggestion that commercial banks should extend financing to holding companies in the infrastructure sector, shows a draft report by Grant Thornton (GT). READ MORE

NEWS ALERT | Rise in government borrowing can squeeze corporate sector: RBI's Viral Acharya, reports Reuters

-- An increase in government borrowing runs the risk of flooding the debt market, and puts upward pressure on interest rates, making it more expensive for companies to borrow, said outgoing Reserve Bank of India Deputy Governor Viral Acharya

-- Acharya said India's borrowing relative to its output has ranged from 67% to 85% since 2000 and has outpaced many emerging markets including China.

-- India should cut back on subsidies and programs that are not delivering long-term growth and divest more of its public sector holdings, Acharya said.

DHFL gains 20% on heavy volumes, rebounds 25% from day's low on NSE

Shares of Dewan Housing Finance Corporation (DHFL) rose 20 per cent to Rs 63 in Tuesday's late morning trade on the National Stock Exchange (NSE) on the back of heavy volumes amid expectation of an in-principle approval from lenders to the company's resolution plan by the month-end. The stock bounced back 25 per cent from its early morning low of Rs 50.50 on the NSE. READ MORE

Prabhudas Lilldher on HDFC Bank

Rating: BUY 

CMP: Rs2,376

TP: Rs2,700

HDFCB earnings at Rs55.7bn were lower than estimates (PLe:Rs58.6bn) as strong core operating performance was utilized by the bank to undertake much higher conservative provisioning on many segments and sectors of the loan book. Business growth was slower both from retail & wholesale with some segments slowed cautiously, while some on back of slowing economy. Bank continues to deliver on most of its core operating metrics with well managed portfolio mix. With 20% CAGR earnings, 20% constant dividend payout (250% of FV special dividend announced as well) and 17% ROEs remains torch bearer for the industry and hence HDFCB remains our most preferred pick in banking universe.

JM Financial Services on Hindustan Zinc

Recommendation: BUY

Target Price: Rs 280

Hindustan Zinc reported 1Q EBITDA of INR 24.8bn driven by strong realisations. Volume guidance for refined metal stands at c.1mn tons. With the transition to
underground mining, the company expects CoP to stabilize at sub USD 1,000/t. Medium term zinc price outlook remains steady, driven by a) multi- year low warehouse inventory (155kt of LME+SHFE inventory implying 5 days consumption) and b) ILZSG deficit forecast (121kt) in CY19 and c) tightness in refined metal supply driven by clamp down of key Chinese smelters. HZ’s sensitivity to LME price movement is low driven by high other income as a percentage of PBT (17% in FY19). We remain positive on HZL given its presence in the lower end of the global cost curve facilitated by high grade captive mines sufficient to meet requirements for decades, 100% captive power plants, sizeable scale of c.1mn tons+, diversified revenue stream with increasing contribution from silver sales
and strong balance sheet with net cash of INR 43/share.

VA Tech Wabag up 6% on securing order worth Rs 1,187 cr under Namami Gange

“The company has secured a project worth Rs 1,187 crore from Bihar Urban Infrastructure Development Corporation (BUIDCO) under National Mission for Clean Ganga (NMCG) Scheme to develop Sewage Treatment Plants (STP) of 150 MLD capacity along with sewerage network of over 450 km in the Digha and Kankarbagh zones of Patna,” VA Tech Wabag said in a regulatory filing at the BSE on Tuesday. READ MORE

Zee Entertainment slips ahead of earnings


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

COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%)
ANDHRA BANK 21.80 21.55 0.00 0.00
APOLLO TYRES 168.25 166.00 -6.75 -3.86
ASHOK LEYLAND 75.60 75.45 -3.80 -4.79
BAJAJ CONSUMER 291.00 285.00 -0.05 -0.02
CARE RATINGS 817.00 817.00 -17.25 -2.07
» More on 52 Week Low

SC cancels RERA registration of Amrapali Group, NBCC to take over projects

The Supreme Court on Tuesday pronounced its verdict on controversial Amrapali Group prject. The court has cancelled RERA registration of the Group. The court has also asked the National Buildings Construction Corporation (NBCC) to complete all the pending projects of Amrapali Group. Supreme Court has ordered the Enforcement Directorate to start an investion for FEMA violation READ MORE

News Impact | Amrapali Industries dip 5% after SC cancels RERA registration


SAT adjourns NSE co-location matter to Sept 18 after SEBI seeks time

The matter pertains to one of the biggest orders passed by the Sebi on April 30 against NSE officials, including former heads Chitra Ramakrishna and Ravi Narain, in the co-location case, where the largest stock bourse was found guilty of providing preferential treatment to select brokers.
 
The former heads of NSE, other officials and finally NSE moved the SAT against the order. READ MORE

Heatmap: S&P BSE Sensex


Reliance Capital zooms over 9%


Mastek tanks 10% after net profit in June quarter dips 11% sequentially

Shares of Mastek slipped 10 per cent to Rs 412 on the BSE in intra-day deals on Tuesday after the company reported 12 per cent sequential declined in net profit at Rs 24 crore in its April-June quarter results for financial year 2019-20 (Q1FY20) on Monday. Revenue from operation during the quarter under review dipped 7 per cent from Rs 247 crore to Rs 267 crore in March quarter. READ MORE

Mastek tanks 10% after net profit in June quarter dips 11% sequentially

Revenue from operation during the quarter under review dipped 7 per cent from Rs 247 crore to Rs 267 crore in March quarter.
 
The management said the reported quarter numbers were lower than expected, due to Brexit uncertainty. The company’s core UK market generates around 75 per cent of global revenue. READ MORE

NEWS ALERT | SC directs NBCC to complete remaining projects of Amrapali Group: CNBC TV18

-- Homebuyers to deposti outstanding amount
-- SC asks ED to probe Amrapali Ground fund diversion


PC Jeweller up 10%


L&T Q1 preview: Strong revenue growth likely aided by healthy execution

First quarter of the financial year 2019-20 (Q1FY20) has been a subdued period for the capital goods players due to slower pace of order awards owing to general election coupled with muted private capex. However, Larsen & Toubro (L&T), the engineering & construction major, is expected to report healthy numbers when it declares its results later in the day, led by strong growth in Infrastructure, Hydrocarbons and IT services businesses. READ MORE

DCB Bank gains 1.12%


NEWS ALERT | VA Tech WABAG secures order worth Rs 1,187 cr under Namami Gange


TVS Motor hits over two-year low on weak Q1 results

Shares of TVS Motor Company hit an over two-year low of Rs 361, down 5 per cent in Tuesday's early morning trade on the BSE after reporting a 3 per cent decline in net profit at Rs 142 crore for the first quarter of fiscal 2020 (Q1FY20), on muted volume, and higher depreciation, interest cost and tax rate. The stock hit its lowest level since January 3, 2017. READ MORE

Mahindra & Mahindra hits new 52-week low


Apollo Tyres slips over 4%


YES Bank off day's low


MARKET CHECK


Nifty Realty index gains, led by Oberoi Realty


Infosys gains over 2%, top gainers on S&P BSE Sensex


Bank of Baroda trades 1.6% lower


SBI trades 0.9% lower


Most active stocks by volume

COMPANY PRICE(RS) CHG(rs) CHG(%) VOLUME
YES BANK 89.15 -2.00 -2.19 1689309
REL. COMM. 1.78 -0.03 -1.66 1149646
DEWAN HSG. FIN. 54.30 1.70 3.23 796214
RELIANCE POWER 3.74 0.10 2.75 657819
RELIANCE CAPITAL 53.75 2.90 5.70 486516
» More on Most Active Volume

Nifty IT index trades 1% higher


Infosys gains 2%, hits 52-week high


HDFC continues to remain under pressure


Glaxosmithkline Pharma trades marginally higher


Shriram Transport Finance Co trades 3% lower


Coromandel International dips over 3%


Talwalkars Healthclubs gits 52-week low; slides 10%


TVS Motors falls over 3%


IT stocks gaining ground; index up 0.8%


TV18 Broadcast soars over 5%


Suntech Realty slips in trade


Market check | Sensex weakens during early trade


Jubilant Foodworks rises marginally


HDFC Bank slips 1.7% in early trade


Broader Market Check


TVS Motors trades flat with negative bias after Q1 results show 3% decline in PAT


Mastek slides over 5%


YES Bank slides as promoters create pledge


Can Fin Homes rises on strong Q1 results


DHFL slips nearly 3% after auditors raise red flags on financial numbers


Sectoral trends at NSE during opening trade


Top gainers and losers on S&P BSE Sensex during opening trade


Market at Open


Market at Open


Elara Capital on L&T Technology Services

Rating: ACCUMULATE
 
Target Price: Rs 1,910

Last Close: Rs 1,480

Considering the slowdown in the semiconductor industry, management has revised revenue guidance to 12-14% from 14-16% for FY20 in USD terms. We reduce our revenue estimates by 2.9% for FY20 and 5.4% for FY21. We raise our EBITDA estimates for FY20 by 3.8% and 4.7% for FY21. We hike our PAT estimates by 1.1% for FY20 and 1.0% for FY21. We arrive at a new TP of INR 1,910 from INR 1,870 on 22x (unchanged) March 2021E P/E, since we expect earnings growth further down the line. We reiterate Accumulate.
 

Market at Pre-open


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


Market at Pre-open


Rupee opening

Rupee opens lower at 69/$ vs Monday's close of 68.91 against the US dollar

Stocks to watch: TVS Motor Co, HUL, YES Bank, USL, L&T, ZEEL, DHFL, IndiGo

Here's a look at some of the stocks that are likely to trade actively in today's trading session -
 
TVS Motor Company: TVS Motor Company reported a 3 per cent decline in net profit at Rs 142.30 crore for the first quarter ended June 30. It had posted a net profit of Rs 146.61 crore in the year-ago period. Total income grew 7.2 per cent to Rs 4,469.82 crore during the quarter ended June 30, as against Rs 4,171.02 crore during the same quarter last year. 
 
HUL: FMCG bellwether Hindustan Unilever (HUL) is slated to announce its June quarter results later in the day. The company is projected to register sales/revenue growth of 9.7 per cent YoY at Rs 10,410 crore. Sequentially, the numbers are likely to rise 4.7 per cent, according to analysts at ICICI Securities. READ MORE

RCEP pact likely to see dumping of Chinese goods: Industry to govt

Fear of Chinese goods flowing into the country unhindered if the deal goes through was the primary concern among industry representatives.
 
Commerce and industry minister Piyush Goyal met representatives during a series of parleys in Mumbai on Monday to allay fears.
 
The RCEP is a proposed pact between 10 Asean economies and six others (New Zealand, Australia, China, India, Japan, and South Korea) with which Asean currently has free-trade agreements (FTAs). READ MORE

Small-caps tumble: BSE Smallcap index hits lowest level since February 2017

Since the presentation of the Budget earlier this month, the S&P BSE Sensex and the Nifty50 have lost around five per cent each. In comparison, the S&P BSE Smallcap index has lost 8.5 per cent. The index hit an intra-day low of 13,089 points, its lowest level since February 1, 2017, on the BSE. From the recent high on April 16, 2019, the smallcap index has tanked 13 per cent, as against 10 per cent fall in the midcap and three per cent cut in the benchmark index.
 
The fall in S&P BSE Smallcap index of 1.5 per cent on Monday was triggered by a slide in market price of stocks from the consumer discretionary, graphite electrode, real estate and information technology (IT) sectors. READ MORE

Motilal Oswal Financial Services on L&T Finance Holdings

Recommendation: BUY
 
CMP: Rs 108

TP: Rs 140

Over the past year, LTFH has reported a healthy operating performance and asset quality, despite the tough liquidity situation. It has also made contingency provisions (now INR3.5b). The plan to de-prioritize structured finance and DCM is in sync with its target of 'retailization' of balance sheet. However, we cut our EPS estimate by 4-8% to account for lower growth. Buy with a TP of INR140 (1.5x FY21E BVPS).

HUL Q1 result preview: Rural stress may dent volume growth, say analysts

The company raised prices by one – two per cent for a few products, which, analysts say, is likely to boost its EBITDA (earnings before interest, tax, depreciation and amortisation) margin. However, higher marketing spend towards new launches and increase in sugar and cocoa prices may cap the upside, they add.
 
Volume growth will be dented on the back of stress in rural consumption. That said, high base of corresponding quarter last year (up 12 per cent) due to GST (goods and services tax) implementation benefits should also be read in context. READ MORE

NEWS ALERT | YES Bank promoters create pledge on 7.34% stake from July 18-22: CNBC TV18

-- Rana Kapoor has pled jos entire holding of 4.3%
-- Morgan Credits PVt Ltd has pledged his entire holding of 3.03%

Last-minute change led to decision of cryptocurrency ban by govt panel

During deliberations, Economic Affairs Secretary Subhash Chandra Garg, who was chairing the inter-ministerial committee, pressed for “accepting virtual currencies as an economic phenomenon” and was not in favour of a ban initially, arguing that “regulating it will likely lead to better results”.
 
In fact, in the first meeting of the committee, which was held on November 27, 2017, the committee had broadly agreed that “the banning option is difficult to implement”. “It may also drive some operators underground, which may encourage use of such ‘currencies’ for illegitimate purposes,” minutes of the meeting showed. READ MORE

Motilal Oswal Financial Services on United Spirits

Recommendation: BUY

CMP: Rs 599

TP: Rs 695

-- Reported EBITDA margin was up sharply by 600bp YoY to 17.9%, primarily driven by savings in operating costs and phasing effect of marketing investment (other expenses were down 380bp YoY, staff costs were down 230bp YoY and ad spends down 280bp YoY).

-- Underlying EBITDA margin improvement was 400bp YoY.

-- Reported EBITDA grew 66.4% to INR4.0b (our estimate: INR2.7b). Underlying EBITDA grew 42% YoY.
 
-- Adjusted PAT grew 88.5% YoY to INR2.0b (our estimate: INR1.3b). 

HPCL refuses to recognise ONGC as promoter, 18 months after merger

Hindustan Petroleum Corp Ltd (HPCL) has for the last one-and-half-years refused to recognise its majority shareholder ONGC as a promoter, according to stock exchange filings.
 
Oil and Natural Gas Corp (ONGC) in January last year bought the government's entire 51.11 per cent stake in HPCL for Rs 36,915 crore. Following which, HPCL became ONGC's subsidiary. READ MORE

Troubled real estate sector may face further stress after latest NHB diktat

The troubled real estate sector is likely to face further stress after the latest diktat from the National Housing Bank (NHB). The NHB has asked housing finance companies to desist from offering loans that involve servicing by builders on behalf of borrowers.
 
As financing gets more expensive, this will have an impact on launches and the Mumbai Metropolitan Market (MMR) will be the worst affected, said industry insiders. READ MORE

Retail investors raise bets on penny stocks despite high investment risk

An analysis of data showed that in June quarter, retail investors (holding share capital of upto Rs 200,000), added to their positions in 54 penny stocks. The number could go up as more companies disclose their June-quarter shareholding on the exchanges.
 
MTNL which is trading at Rs 6.8 per share and reeling from debt burden of Rs 20,000 crore, has seen among the highest retail interest. In the June quarter, retail investors added 8.2 million shares to their position, which took their June-end holding to 81 million or 13 per cent stake. READ MORE

India's interest-rate stance now depends on data, says Shaktikanta Das

“Effectively, the rate cut has been 100 basis points if you take into account the change in stance,” Das said ahead of the next Monetary Policy Committee meeting that begins August 5. “The accommodative stance will depend on incoming data. How inflation numbers look, how the growth numbers look. Primarily how inflation looks.” READ FULL REPORT HERE

Investments through participatory notes decline to Rs 81,913 crore in June

In the previous four months, cumulative investment of Rs 73,428 crore was made till the end of February, Rs 78,110 crore till March-end, Rs 81,220 crore till April-end and Rs 82,619 till May-end. P-notes are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be part of the Indian stock market without registering themselves directly after going through a due diligence process. READ MORE

Wait for valuations to correct further before you buy market favourites

The market correction appears to be gathering momentum. The Nifty is down 5 per cent since Budget day and 2.1 per cent over the past three months.
 
Mid- and small-cap indices have been hit hard, declining 8.9 per cent and 12.2 per cent, respectively, over the past three months. However, instead of panicking, investors could view the current market correction as an opportunity to purchase quality stocks, which are usually too expensive when the going is good.  READ MORE

Today's picks: From ITC to Bajaj Finance, hot stocks to watch on Tuesday

Nifty
 
Current:
 
11,346 (11,352)
 
Target: NA
 
Stop long positions at 11,275. Stop short positions at 11,425. Big moves could go till 11,475, 11,225. A long July 25, 11,300p (36), short 11,200p (16) could gain 10-15, if the index drops below 11,300. READ MORE

Nifty outlook and top stock picks by Prabhudas Lilladher: Buy RIL, Hindalco

NIFTY VIEW
 
Nifty broke the significant support of 11,400 levels on Monday weakening the bias. Some consolidation, however, was witnessed near 11,300 levels. The support for the day is seen at 37,730/11,270 while resistance is seen at 38,330/11,400. Bank Nifty would have the daily range of 28,950 - 29,600. IT Index along with Pharma, Metals & RIL have shown strength to hold Nifty. Bank Nifty too, after correcting by 1000 points, after a break of 30,250, shows a halt. Signs of pullback from here on cannot be ruled out for a while. READ MORE

Bulk deals on NSE as on Monday

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


Rupee Check

Source: Bloomberg


Oil Check

At 08:05 am, Brent Crude Futures were at $63.33 per barrel

SGX Nifty

At 08:03 am, the Singaporean Exchange for Nifty futures was trading 12 points higher at 11,351 levels, indicating a flat to positive start for domestic indices.

Asian Market Check

Source: Reuters


US Market Check

Source: Reuters


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