MARKET WRAP: Indices end flat, Nifty holds 11,550; Realty, pharma shine

Markets witnessed a volatile trade on Tuesday as investors looked for clarity on issues of taxation on share buyback and surcharge on FPI investment. Furthermore, waning rate cut hopes from the US Fedral Reserve dented sentiment across Asian markets.

Markets pared losses and ended the session on a flat note. The Sensex closed 10.25 points, or 0.03 per cent, higher at 38,731 levels with TCS, HCL Tech and ITC being the top laggards. On the contrary, Bajaj Finance, Sun Pharmaceuticals and Hero Moto Corp were the top gainers on the Sensex. The broader Nifty50, too, settled 2.7 points, or 0.02 per cent, lower at 11,556 levels. 

The Sensex hit an intra-day low of 38,436, down 285 points, while the Nifty50 skid 98 points to touch 11,461 mark.

In the broader market, S&P BSE Mid-Cap ended 92 points, or 0.63 per cent, higher at 14,524 levels while the BSE Small-Cap gained 7 points, or 0.05 levels, to settle at 13,802 levels.

Sectorally, FMCG and information technology counters took the biggest knock with the respective indices settling nearly 0.95 per cent each. Among gainers, Nifty Realty and Pharma indices closed 2.75 and 2.62 per cent higher respectively followed by Nifty PSU Bank index which was up 1.55 per cent.

BUZZING STOCKS

Shares of Titan Company slumped as much as 13 per cent to Rs 1,094 apiece on the BSE in the opening deals on Monday after the company reported a lower-than-expected growth in jewellery business during April-June quarter (Q1FY20) owing to a tough macro-economic environment with consumption taking a hit. READ MORE

Shares of consumer discretionary companies were under pressure on Tuesday on concerns over lower-than- expected earnings for April-June quarter (Q1FY19), due to a tough macro-economic environment. READ MORE

Mindtree shares extended losses on Tuesday and slipped 4 per cent intra-day to hit a new 52-week low of Rs 736. The downward trend, which led to a fall of 17 per cent in the stock's value in the past two days, began after three founders of the Bengaluru-based IT services company resigned following a change of control. READ MORE

GLOBAL CUES

Asian stocks hovered around two-and-a-half week lows on Tuesday as expectations waned for a hefty interest rate cut by the U.S. Federal Reserve later this month.

Japan's Nikkei ended 0.14 per cent higher while South Korea's Kospi closed 0.59 per cent lower.

In the commodities market, oil prices were slightly softer as concerns about whether slowing global growth would hit demand eclipsed tensions over Iran’s nuclear programme. At 3:20 pm, Brent Crude Futures were at $64.35 per barrel.

4:01 PM IST

3:49 PM IST Indian markets started off on a cautious note amid weak global cues and ahead of Q1-FY20 results with IT major Tata Consultancy Services (TCS) all set to report its numbers later in the day. However, the declines further steepened in the day as anxiety remained among traders with Ratings? agency report on economic slowdown which has begun to dent the credit profile of India Inc. There has been a deterioration in the credit quality of entities rated in the first quarter of the current financial year, showing effect of the prevailing slowdown in the Indian economy.   The Reserve Bank of India (RBI) Governors? statement about current financial system surplus, liquidity and its effect on facilitation of better transmission of rate cuts failed to cheer markets.   On sectoral front, Healthcare, Realty and PSU Bank were trading in positive while FMCG and IT traded negatively. The other sectoral indices traded mixed without any meaningful trend.

3:42 PM IST

3:41 PM IST

3:39 PM IST The S&P BSE Sensex ended 10 points or 0.03 per cent higher at 38,731 levels while NSE's Nifty50 index ended at 11,556, up 3 points or 0.02 per cent. 

3:08 PM IST Shares of Adani Power, Just Dial and Varun Beverages hit their respective 52-week highs on the BSE on Tuesday in an otherwise subdued market. In comparison, the benchmark S&P BSE Sensex was up 0.1 per cent at 38,760 points in the afternoon trade. Adani Power rallied 11 per cent to Rs 69, surpassing its previous high of Rs 67 touched on July 4, in intra-day trade. The counter has seen huge trading volumes with a combined 46 million shares changing hands on the BSE and NSE so far. READ MORE

2:55 PM IST -- Outlook revised from 'credit watch' to 'stable'

2:43 PM IST

2:27 PM IST

2:26 PM IST State-owned engineering and manufacturing enterprise BHEL Tuesday said Nalin Shinghal has been appointed as its Chairman and Managing Director (CMD).   "On his appointment as CMD of Bharat Heavy Electricals Limited (BHEL), Dr Nalin Shinghal, has assumed charge as CMD of India's largest engineering and manufacturing enterprise of its kind," BHEL said in a statement. READ MORE

2:12 PM IST

LIVE UPDATES

STOCK ALERT :: Maruti hits fresh 52-week low, ends below Rs 6,000/sh for the 1st time since March 2017


Market closing comment | Anand Rathi Financial Services

Indian markets started off on a cautious note amid weak global cues and ahead of Q1-FY20 results with IT major Tata Consultancy Services (TCS) all set to report its numbers later in the day. However, the declines further steepened in the day as anxiety remained among traders with Ratings? agency report on economic slowdown which has begun to dent the credit profile of India Inc. There has been a deterioration in the credit quality of entities rated in the first quarter of the current financial year, showing effect of the prevailing slowdown in the Indian economy.
 
The Reserve Bank of India (RBI) Governors? statement about current financial system surplus, liquidity and its effect on facilitation of better transmission of rate cuts failed to cheer markets.
 
On sectoral front, Healthcare, Realty and PSU Bank were trading in positive while FMCG and IT traded negatively. The other sectoral indices traded mixed without any meaningful trend.

Sectoral gainers and losers on the NSE


Top gainers and losers on the S&P BSE Sensex


CLOSING BELL

The S&P BSE Sensex ended 10 points or 0.03 per cent higher at 38,731 levels while NSE's Nifty50 index ended at 11,556, up 3 points or 0.02 per cent. 

Adani Power, Just Dial, Varun Beverages hit 52-week highs

Shares of Adani Power, Just Dial and Varun Beverages hit their respective 52-week highs on the BSE on Tuesday in an otherwise subdued market. In comparison, the benchmark S&P BSE Sensex was up 0.1 per cent at 38,760 points in the afternoon trade. Adani Power rallied 11 per cent to Rs 69, surpassing its previous high of Rs 67 touched on July 4, in intra-day trade. The counter has seen huge trading volumes with a combined 46 million shares changing hands on the BSE and NSE so far. READ MORE

NEWS ALERT | CARE ratings revises ZEE Media's long-term facilities of Rs 113 from 'A' to 'BBB'

-- Outlook revised from 'credit watch' to 'stable'

IDFC First Bank gains over 2%


STOCK ALERT :: Sun Pharma set for biggest 1-day-gain in a year


Nalin Shinghal appointed as Chairman and Managing Director of BHEL

State-owned engineering and manufacturing enterprise BHEL Tuesday said Nalin Shinghal has been appointed as its Chairman and Managing Director (CMD).
 
"On his appointment as CMD of Bharat Heavy Electricals Limited (BHEL), Dr Nalin Shinghal, has assumed charge as CMD of India's largest engineering and manufacturing enterprise of its kind," BHEL said in a statement. READ MORE

ABB India gains on sale of inverter business


NEWS ALERT | ABB Board approves sale of solar inverter business to Italian firm, FIMER SpA


MARKET ALERT | RIL crosses Rs 8 trillion market-cap mark


Deposit Rs 18,000 cr if you want to travel abroad: Delhi HC to Naresh Goyal

A Delhi High Court Tuesday refused to allow Jet Airways founder Naresh Goyal to leave India and sought response of the Centre on his plea challenging a look out circular issued against him. Justice Suresh Kait said no interim relief can be granted to Goyal at this stage and added that he may deposit Rs 18,000 crore guarantee if he wants to travel to a foreign country now. READ MORE
File photo: Naresh Goyal | PTI

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

COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%)
ASTER DM HEALTH. 117.50 115.10 -0.50 -0.42
BOSCH 15931.45 15864.65 -39.95 -0.25
C P C L 190.75 190.00 -2.15 -1.11
CADILA HEALTH. 227.45 223.20 2.95 1.31
CARE RATINGS 909.60 900.85 -2.90 -0.32
» More on 52 Week Low

NEWS ALERT | Reports of IRDA rejecting Axis Bank's 10% buy proposal in Max Life incorrect & baseless: Max Fin

-- Max Fin clarifies that it has not approached the Insurance Regulator IRDAI with any proposal for Axis Bank purchasing 10% stake in subsidiary

Lupin launches Imatinib Mesylate tablets in the US market: CNBC TV18


NEWS ALERT | Ashok Venkataramani resigns as MD of ZEE Media wef July 10: CNBC TV18


Mindtree hits 52-week low; stock dips 17% in two days after top mgt resigns

Mindtree shares extended losses on Tuesday and slipped 4 per cent intra-day to hit a new 52-week low of Rs 736. The downward trend, which led to a fall of 17 per cent in the stock's value in the past two days, began after three founders of the Bengaluru-based IT services company resigned following a change of control. The stock fell below its previous low of Rs 753 touched on October 26, 2018 in the intra-day deals. Meanwhile, the stock on Monday turned ex-date for dividend of Rs 24 per share. READ MORE

Would not like to comment further on surcharge issue: CEA Subramanian (via CNBC TV18)

-- will be deliberating on the surcharge issue: CEA
CEA Krishnamurthy Subramanian


Maruti, Coal India among 49 stocks trading in oversold territory, shows RSI

A sudden fall in the benchmark indices has taken a toll on several stocks. Scrips such as Bajaj Finserv, Punjab National Bank, Mindtree and now Titan Company have made the investors jittery after collapsing over 10 per cent in just two sessions. In the last two sessions, the benchmark indices Nifty50 and S&P BSE Sensex have tumbled over 450 points and 1,200 points, respectively. Some of the Budget proposals have disrupted the market trend generating fear among investors. READ MORE

Buzzing | DHFL tanks 10%


DHFL extends loss to over 8%


NEWS ALERT | Hero Moto appoints Vikram Kasbekar as Chief Technology Officer

-- Rajat Bhargava to head newly established 'Emerging Mobility' segment

Top gainers and losers on S&P BSE Sensex at this hour


Market check


Market check


Retail inflation likely hit 8-mnth high in June, but below 4%: Reuters poll

According to the median consensus of 40 economists polled by Reuters between July 4-7, retail inflation rose at an annual rate of 3.20% in June, up from 3.05% in May. Forecasts ranged between 2.90% and 3.84%. READ MORE

Sensex stages recovery from day's low


BSE Consumer discretionary index hits 52-week low; Bata, DMart down over 3%

Shares of consumer discretionary companies were under pressure on Tuesday on concerns over lower-than- expected earnings for April-June quarter (Q1FY19), due to a tough macro-economic environment.
 
Titan Company, Bata India, Jubilant FoodWorks, Asian Paints, Avenue Supermarts (DMart), Symphony, Voltas and Page Industries from the S&P BSE Consumer Discretionary Goods & Services index were down by more than 2 per cent on the BSE. READ MORE

NEWS ALERT | Delhi HC refuses stay on LOC retraining Naresh Goyal from travelling overseas: CNBC TV18

-- Delhi HC to resume hearing Naresh Goyal's plea against NOC after 5 weeks


NEWS ALERT | Hero FinCorp to place offer to acquire 100% stake in Reliance Gen this month, sources to CNBC TV18

-- Reliance Capital may seek Rs 5500-Rs 6000 cr to acquire Reliance Gen

-- Reliance Gen sought Rs 7,500 - Rs 8000  cr via IPO

-- Rel Gen's IPO likely shelved

-- Rel Gen's deal value may be priced at 3.5-3.75x price-to-book value 

NEWS ALERT | Bajaj Finance Q1 AUM at Rs 1.29 lakh crore vs Rs 91,287 cr (41.3% growth YoY)

-- New loans booked during Q1 at 7.3 MM vs 5.6 MM (YoY)
 
-- Q1 Customer franchise at 36.9 MM vs 28.3 MM (YoY)
 

Sell call on TCS by Prabhudas Lilladher

Sun Pharma rises over 4%


NEWS ALERT | Will look at the surcharge issue: CEA Krishnamurthy Subramanian

-- Urge market participants to look through long-term prospects, says CEA 

Market check


Market check | Nifty50 sees recovery


Trai refuses to budge on 5G spectrum pricing in upcoming auctions

The Telecom Regulatory Authority of India (Trai) on Monday reiterated its recommendation on spectrum pricing in the upcoming auctions. In response to the Digital Communications Commission (DCC), the regulator said it had considered all the relevant factors, including methodology, assumptions, and developments in the telecom sector before giving its views.
 
Last month, the DCC had asked Trai to reconsider its spectrum recommendations amid financial stress in the sector and to also ensure competition and greater participation of a larger set of players in the upcoming auctions. READ MORE

JSPL promoter releases pledge on 52 lakh shares (0.51% equity) on July 5


Sharp fall in DHFL


Index Alert | Nifty Realty index sees sudden surge


NEWS ALERT | Rs 45 lakh limit for affordable housing a dampener: Irfan Razack, chairman, managing director, Prestige Group


Godrej Properties dips 3%


No clarification over FPI surcharge needed at present, says FM Sitharaman

Confusion continued on Monday over the government’s stand on the applicability of increased surcharge on foreign portfolio investors (FPIs), a move in the Budget that is likely to impact long-term money coming through mutual funds and pension funds.
 
While Finance Minister Nirmala Sitharaman said after the RBI board meeting in the capital that there was no need for any clarification on the additional tax burden, CBDT Chairman P C Mody said on the sidelines of an Assocham event in Delhi that the matter was being examined and a clarification could be issued soon. Several industry bodies, which represent portfolio investors such as Asset Managers Roundtable of India, are lobbying with the finance ministry and other sections of the government for an exemption on surcharge. READ MORE

STOCK ALERT :: Titan sees biggest one-day fall in 11 years, erases market cap of over Rs 15,000 cr in today’s trade

-- Stock down 19% in 4 sessions

Pick of the Week | Kotak Securities

Aegis Logistics Ltd
 
Recommendation: BUY
 
Price: Rs 210
 
Target: Rs 270 
 
Potential Upside: 28.6%

Aegis currently has three operational LPG terminals with static capacity of around 63,000mt and throughput capacity of around 5.0 mmtpa. In FY18, Aegis doubled its static capacity to 63,300 MMT (and quadruple its throughput capacity to 5 mn MMT) with an investment of Rs. 3.68 bn. 
 
With petrochemical industry growing at ~9-10% per annum, demand for POL products would remain strong for the company. Aegis is well positioned to handle imported LPG and POL with its terminals at key ports.
Aegis Logistics Ltd

Share buyback runs into tax roadblock, govt move may hurt repurchase

More than 70 companies, including software exporter Wipro Ltd., announced or completed Rs 54.6 billion ($5.2 billion) of share buybacks in the first half of 2019, data compiled by Bloomberg show. That’s about two thirds of the Rs 546 billion of such transactions for all of 2018, which was the most in at least six years, the data show. READ MORE

NEWS ALERT | May need to tap foreign savings to nudge domestic savings: Krishnamurthy Subramanian, chief economic adviser

Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
YES BANK 95.90 2.80 3.01 2095048
PUNJAB NATL.BANK 73.05 0.25 0.34 1271290
RELIANCE POWER 4.06 0.04 1.00 844988
SUZLON ENERGY 4.63 0.05 1.09 578795
REL. COMM. 1.62 0.00 0.00 575657
» More on Most Active Volume

Titan posts biggest fall in 11 years, tanks nearly 14%


United Spirits dips over 2%


Pidilite slips 2%


Market check | Nifty slips below 11,500


Nifty sectoral indices at this hour


MARKET CHECK


Asian Paints slides over 2%


Fortis Healthcare climbs after getting shareholders' nod for offloading its stake in Medical and Surgical Centre


Meghmani Organics rise after subsidiary completes installation of Chlormethane (CMS) project in Gujarat complex


NHPC gains after Unit 1&3 of Baira Suil Power Station start electricity generation.


YES Bank rises over 2%


Nifty PSU Bank index gains 0.9% after a subdued performance in yesterday's session


NEWS ALERT | All the banks in the consortium have made 50% provision on BSPL as the account in under NCLT: Sunil Mehta

-- Expect recovery of Rs 1800 from BSPL

Market check | Buy on dips lifts Sensex


TCS trades lower ahead of the Q1 results later in the day


OMCs trade higher


Hero Moto Corp off lows, buying being witnessed in the scrip


Broader market check


Hindustan Unilever slips over 1%


HDFC slips over 2%


Nifty Metals index rises


Nifty Pharma index becomes the biggest gainer in a subdued trade today


Colgate Palmolive slips over 1%


Dish TV gains 1%


Sandur Manganese Iron Ores gains over 1%


Reliance Nippon Life AMC holds gains during morning deals


NIIT Tech slips 1%


Delta Corp slips over 2% on weak growth YoY


Mindtree gains 2%


BF Utilities gain during early trade


Titan skids 9% during early trade


Sectoral trends on NSE at this hour


Top gainers and losers on S&P BSE Sensex


Market at open


Market at open


Rupee opening

Rupee opens unchanged at 68.65 against the US dollar

Titan slips during Pre-Open trade


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


Market at pre-open


Market at pre-open


FMCG sector may lose its sheen as Union Budget, monsoon disappoint

Investors in the fast-moving consumer goods (FMCG) companies may be in for a shock. Despite slowing sales since the start of 2019, hopes of recovery in consumption demand, mainly from the second half of 2019-20 onwards, have kept the valuation of FMCG companies elevated. However, now, with no key triggers for demand revival visible in the near term, FMCG stocks could see a derating. READ MORE

Stocks to watch

TCS: Tata Consultancy Services (TCS) is slated to announce its financial results for the first quarter (April-June) of the fiscal year 2019-20 (Q1FY20) on Tuesday. It is likely to post revenue growth of 2.8 per cent - 3 per cent in constant currency (CC) terms on quarter-on-quarter (QoQ) basis.
 
Voltas: Voltas has announced its partnership with Energy Efficiency Services (EESL) to manufacture and sell 5-star rated Inverter Air Conditioners. READ MORE

Share buyback runs into tax roadblock, govt move may hurt repurchase

The decision by India’s government to impose a tax on stock buybacks puts the brakes on what could have been another great year for share repurchases. More than 70 companies, including software exporter Wipro Ltd., announced or completed Rs 54.6 billion ($5.2 billion) of share buybacks in the first half of 2019, data compiled by Bloomberg show. That’s about two thirds of the Rs 546 billion of such transactions for all of 2018, which was the most in at least six years, the data show. READ MORE

Budget 2019: Rise in taxes to take a toll on category-III alternative funds

Sophisticated investment funds marketed to the rich will now have to pay higher taxes. New norms introduced in the Budget but effective from April 1 make it unclear who would bear the brunt of the higher outgo for investors who may have already exited these funds before the Budget announcement, according to experts. READ MORE

Budget impact: Exports may be counted as local sourcing for retail

Even as the government is fine-tuning changes in the single-brand retail policy following the Budget proposal to relax the local sourcing norms, it is learnt that at least three significant tweaks are being planned to attract foreign investment from marquee multinational brands. These changes — easier sourcing norms and access to the online market without the condition of a physical store — are likely to benefit international majors ranging from Apple to Ikea, Uniqlo to Shein and many others. READ MORE

Morgan Stanley cuts allocation to global equities, sees limited upside

“Over recent weeks, you’ve heard us discussing why we think investors should fade the optimism from the recent G20. Why we think bad data should be feared rather than cheered because it will bring more central bank easing. Why we think the market is too optimistic on 2019 earnings and is underestimating the pressure from inventories, labour costs and trade uncertainty,” wrote Andrew Sheets, their chief cross-asset strategist in a July 7 report. READ MORE

Why bank fixed deposits make better sense than buying T-bills, G-secs

In her Budget speech, the Finance Minister Nirmala Sitharaman said that the government wants to get retail investors to put money in treasury bills (T-bills) and government securities (G-secs). But the government has a long way to go to make them a preferred choice of instrument for retail investors. READ MORE

Motilal Oswal Financial Services on Titan

Titan Company

Recommendation: BUY

Last close: Rs 1,253

Target Price: Rs 1,500 

We believe that Titan’s high valuations are fully justified, given its (a) best topline growth visibility in the large-cap FMCG/retail space (20% CAGR in Jewellery,
the largest segment, over the next four years), (b) prospects of continued EBITDA margin improvement because of high SSSG contribution and (c) sustained RoCE improvement from ~26% in FY19 to 34% in FY21. In fact, increasing concerns over revenue/earnings growth of many consumer peers should also ensure high multiples for the stock. We maintain Buy with a revised target price of Rs 1,500

 

For top financiers, the slowdown is catching up faster than anticipated

Shares of the two market leaders -- Bajaj Finanace and HDFC Bank -- in their respective lending businesses, were down over eight per cent and 2.5 per cent respectively, reacting to news flow which wasn’t encouraging. Sanjeev Bajaj, the MD of Bajaj Finserv, which holds majority stake in Bajaj Finance, was on television admitting that sales growth of consumer durables, loans to small and medium enterprises and loan growth in rural pockets are slower than last year. READ MORE

FPI surcharge makes markets see red; Sensex posts biggest fall in 9 months

This was the biggest single-day fall since October 11, 2018, for the two indices, which are now back to levels seen before the election results on May 23. Today’s fall of 2.01 per cent was slightly below last year’s fall of 2.34 per cent a day after the Budget. India’s market capitalisation saw an erosion of Rs 3.4 trillion in Monday’s trade. READ MORE

Derivatives strategies: 11,100-11,200 mark a key support for Nifty

The market cracked substantially in the Budget session and it fell more steeply on Monday. The bearish trend seen in the loss of approximately 3 per cent in the major market indices was reinforced by poor advance-decline ratios and the high volumes associated with Budget-related trading. Declines outnumbered advances by over 4:1 since the Budget session. KNOW MORE

Top trading ideas by Anand Rathi: Buy McDowell, Cipla; Sell ICICI Bank

ICICI Bank : SELL
 
TGT: Rs 407
 
SL: Rs 436
 
The stock has provided a breakdown from the symmetrical triangular pattern on the lower side with a clear sell crossover in its hourly as well as daily momentum indicator. READ MORE

Today's picks: From TCS to Hero MotoCorp, hot stocks to watch on Tuesday

Nifty 
 
Current: 11,559 (fut: 11,570)
 
Target: NA
 
Stop-long positions at 11,470.
 
Stop-short positions at 11,655.
 
Big moves could go till 11,425, 11,725. Trend is bearish. A long June 18, 11,500p (75), short 11,400p (45) could gain 15-20 if the index falls below 11,450.
 
Nifty Bank 
 
Current 30,605 (fut: 30,706)
 
Target: NA
 
Stop-long positions at 30,550. Stop-short positions at 30,850. Big moves could go till 31,050, 30,300. Trend is bearish. 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 8 am, Brent Crude Futures were trading at $63.86 per barrel, down 0.39 per cent, from their last close.

SGX Nifty

At 7:55 am, SGX Nifty was trading 8.5 points lower at 11,560 levels indicating a flat start for the indices with a negative bias

Asian Markets check

Source: Reuters


US Market check

Source: Reuters


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