MARKET WRAP: Sensex up 266 pts as financials, auto stocks rally

Markets snapped selling spree at D-Street on Thursday as possible interest rate cuts by the United States' Federal Reserve lifted sentiments across the Asian markets. 

The benchmark S&P BSE Sensex settled 266 points, or 0.69 per cent, higher at 38,823 levels. Hero Moto Corp, IndusInd Bank, Tata Motors, and Vedanta were the top gainers on the 30-share index while Tech Mahindra, ICICI Bank and Axis Bank were the top laggards. The broader Nifty50 too settled 84 points, or 0.73 per cent, higher at 11,583 levels.

Broad-based buying, led by rate-sensitive stocks like realty, banking and auto scrips, lifted both the benchmark indices, S&P BSE Sensex and the broader Nifty50, to 38,892 and 11,599 levels respectively. The indices were up 261 points and 80 points respectively from lows.

In the broader market, the S&P BSE Mid-Cap closed 80 points, or 0.56 per cent, higher at 14,495 levels. Similarly, the S&P BSE Small-Cap settled 56 points, or 0.41 per cent, higher at 13,755 levels.

Sectorally, all the indices ended in the green. Nifty Auto and PSU Bank indices ended 1.86 per cent and 1.72 per cent higher respectively, followed by gains in the Nifty metal (1.77 per cent), pharma (1.26 per cent) and realty (1.29 per cent) indices.

BUZZING STOCKS

Shares of Religare Enterprises were locked in the 10 per cent upper circuit at Rs 42.95 per share on the BSE on Thursday after the company announced its plan to sell Religare Finvest to TCG advisory for an undisclosed amount. READ MORE

Shares of GTPL Hathway zoomed 20 per cent to Rs 64.80 in intra-day trade on the BSE on Thursday after the digital cable television and broadband services provider's consolidated net profit more-than-doubled at Rs 29 crore for the quarter ended June 2019 (Q1FY20). It had posted a profit of Rs 13 crore in the year-ago quarter. READ MORE

GLOBAL CUES

World stocks rose, global bond yields fell and the dollar weakened after Federal Reserve Chairman Jerome Powell bolstered expectations the Fed would cut U.S. interest rates soon.

Japan's Nikkei ended 0.15 per cent lower while South Korea's Kospi settled 0.33 per cent higher.

In the commodities market, Brent Crude Futures were at $67.47 per barrel at 3:20 pm.

3:41 PM IST

3:41 PM IST

3:35 PM IST The S&P BSE Sensex gained 266 points or 0.69 per cent to settle at 38,823 while the Nifty50 index of the National Stock Exchange (NSE) ended at 11,583, up 84 points or 0.73 per cent. 

3:01 PM IST -- Consolidated net profit down 12.1 per cent YoY at Rs 34.7 cr   - Revenue down 7.2 per cent YoY at Rs 273.2 cr  

2:57 PM IST As India Inc prepares to report its April-June 2019 quarter numbers for financial year 2019-20 (Q1FY20), analysts at Morgan Stanley expect the financial sector to lead earnings growth. For the recently concluded quarter, they peg the earnings growth for the companies they cover (ex-financials) to fall 4 per cent year-on-year (YoY), but rise 29 per cent YoY if the oil PSUs are excluded from the aggregate. READ MORE

2:49 PM IST

2:43 PM IST India Inc's foreign direct investment in June fell by over two times from a year ago to $820.36 million, data from the Reserve Bank of India showed Wednesday.   The outward foreign direct investment (OFDI) by the Indian firms stood at $2.29 billion in the year-ago same month, according to the RBI data on OFDI.   In May, the Indian firms had invested over $1.56 billion in their overseas ventures. READ MORE

2:42 PM IST India’s market regulator is probing whether InterGlobe Aviation Ltd Chief Executive Officer Ronojoy Dutta downplayed the tussle between the promoters of the country’s largest carrier IndiGo, ET Now reported on Thursday, citing sources. The spat between co-founders and promoters Rakesh Gangwal and Rahul Bhatia escalated after Gangwal on Tuesday alleged violations of corporate governance rules at the parent group and asked the Securities and Exchange Board of India (SEBI) to intervene. (Reuters)

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 gained 266 points or 0.69 per cent to settle at 38,823 while the Nifty50 index of the National Stock Exchange (NSE) ended at 11,583, up 84 points or 0.73 per cent. 

NEWS ALERT | CCL Products Q1 results

-- Consolidated net profit down 12.1 per cent YoY at Rs 34.7 cr
 
- Revenue down 7.2 per cent YoY at Rs 273.2 cr
 

SBI, ONGC to lead Nifty earnings growth in June quarter: Morgan Stanley

As India Inc prepares to report its April-June 2019 quarter numbers for financial year 2019-20 (Q1FY20), analysts at Morgan Stanley expect the financial sector to lead earnings growth. For the recently concluded quarter, they peg the earnings growth for the companies they cover (ex-financials) to fall 4 per cent year-on-year (YoY), but rise 29 per cent YoY if the oil PSUs are excluded from the aggregate. READ MORE

Broader market check


India Inc's FDI down over two times to $820 million in June, shows RBI data

India Inc's foreign direct investment in June fell by over two times from a year ago to $820.36 million, data from the Reserve Bank of India showed Wednesday.
 
The outward foreign direct investment (OFDI) by the Indian firms stood at $2.29 billion in the year-ago same month, according to the RBI data on OFDI.
 
In May, the Indian firms had invested over $1.56 billion in their overseas ventures. READ MORE

SEBI to probe if IndiGo CEO downplayed promoters' tiff

India’s market regulator is probing whether InterGlobe Aviation Ltd Chief Executive Officer Ronojoy Dutta downplayed the tussle between the promoters of the country’s largest carrier IndiGo, ET Now reported on Thursday, citing sources. The spat between co-founders and promoters Rakesh Gangwal and Rahul Bhatia escalated after Gangwal on Tuesday alleged violations of corporate governance rules at the parent group and asked the Securities and Exchange Board of India (SEBI) to intervene. (Reuters)

Oil check

Source: oilprice.com



BEML gains over 7%


Sudden surge in Dish TV, stock up over 11%


NEWS ALERT | Fitch affirms Glenmark long-term issuer rating at BB


Market check | Nifty approaches 11,600


Market check | Sensex trading at day's high


Investors may find it hard to dodge India's plan to tax the super rich

With frightened investors wiping off Rs 2.9 trillion ($42 billion) from the benchmark S&P BSE Sensex since the budget on July 5 through Wednesday, tax officials have suggested that global funds convert themselves from trusts -- a structure followed by several foreign funds that invest in India -- to corporates as a way to avoid paying the higher surcharge. READ MORE

NEWS ALERT | CARE Ratings reaffirms A1+ rating for BHEL's commercial paper of Rs 8,000 cr: CNBC TV18


NEWS ALERT | Supreme Court adjourns hearing on Jaypee Infra to July 18: BTVi

-- SC says, let the NCLAT procedures continue, do not want to bypass it

-- Can exercise powers under xection 142 if NCLAT passes adverse order

Market check


Market check


NEWS ALERT | CARE Ratings revises Dish TV's banking facilities to A3+ from A3


NEWS ALERT| Rel Infra signs inter-creditor agreement with 16 lenders: CNBC TV18

-- Achieves standstill for 180 days as the per inter-creditor agreement

Auto stocks gain

COMPANY LATEST(rs) CHG(rs) CHG(%) VOLUME
TATA MOTORS 156.00 4.60 3.04 1059147
ASHOK LEYLAND 84.55 -0.25 -0.29 611206
TATA MOTORS-DVR 75.25 2.15 2.94 165585
ESCORTS 544.50 7.25 1.35 77369
MARUTI SUZUKI 6012.00 83.30 1.41 33472
» More

Finance ministry may look into tax regime of employee stock ownership plan

The government will review the taxation regime of employess stock ownership plans (Esops). Esop is a compensation tool for employees and a review is underway to address the effectiveness of the instrument, reported Economic Times. The review will not be confined to startups.  The stock option is an instrument used for compensation or to retain talent in the company. The DPIIT had pushed for making Esops in startups taxable only at the time of sale. READ MORE

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

COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%)
AJANTA PHARMA 888.75 875.00 -21.75 -2.39
ASAHI INDIA GLAS 202.80 200.00 -7.20 -3.43
BLUE DART EXP. 2607.00 2581.70 3.80 0.15
C P C L 182.00 176.05 -0.80 -0.44
CARE RATINGS 874.65 871.00 -14.65 -1.65
» More on 52 Week Low

DHFL off day's low, surges 6%


Motilal Oswal Financial Services on AU Small Finance Bank

Recommendation: BUY

CMP: Rs 657

TP: Rs 750 

AUBANK has made strong progress on the business growth front, and alongside, has made adequate investments to support the growth momentum. We expect the bank to deliver steady progress in earnings/return ratios over FY19-21, aided by gradual improvement in operating leverage. We, thus, estimate ~43% earnings
CAGR over FY19-21. Strong credit underwriting, diversified and a granular loan book coupled with a committed management should enable the stock to trade at
premium valuations. We maintain Buy with PT of INR750 (4.7x FY21E BV). 

Graphite electrode makers under pressure;Graphite India, HEG hit 52-wk lows

Shares of graphite electrode (GE) makers – Graphite India and HEG – slipped by up to 9 per cent in intra-day trade on the BSE, hitting their respective 52-week lows on concerns of softening GE prices. Moreover, an uptick in prices of key raw material is likely to impact margins. Among individual stocks, Graphite India plunged 9 per cent to Rs 278 on the BSE, its lowest level since September 15, 2017. HEG tanked 7 per cent to Rs 1,197, its lowest level since October 2017. READ MORE

Tourism Finance Corporation hits 2-year low on pledged share concerns

Shares of Tourism Finance Corporation of India (TFCI) hit an over two-year low of Rs 65, down 8 per cent on the BSE in the intra-day trade on Thursday on investors' concerns over pledged shares by the promoters. The stock of financial institution was trading at its lowest level since March 16, 2017. It has tanked 41 per cent in the past eight trading days after concerns surfaced over the company’s substantial exposure to Cox & Kings. READ MORE

Sensex near day's high


Den Networks surges 11%


NEWS ALERT | Seeing improvement in market share of banks as compared to NBFCs and MFs: UBS via CNBC TV18

-- Expect slightly higher slippages and increase in watchlist than earlier estimated: UBS

JSW Steel up over 3%


NEWS ALERT | Bharat Forge arm Kalyani Rafael bags $100m order for mfg 1,000 BARAK-8 MRSAM missile kits


GTPL Hathway zooms 20% on impressive June quarter results

Shares of GTPL Hathway zoomed 20 per cent to Rs 64.80 in intra-day trade on the BSE on Thursday after the digital cable television and broadband services provider's consolidated net profit more-than-doubled at Rs 29 crore for the quarter ended June 2019 (Q1FY20). It had posted a profit of Rs 13 crore in the year-ago quarter. READ MORE

13 firms where PAT margin has risen consistently in the last 4 quarters

Marico, Dhampur Sugar Mills, Balrampur Chini Mills, Jammu & Kashmir Bank, Oriental Bank of Commerce and Deepak Nitrite are some of the companies whose PAT (profit after tax) margin has seen a consistent rise in the last four quarters (as of March 2019 quarter), data analysed from ACE Equity shows. However, the steady performance is not being reflected in their stock prices as most of the scrips have remained subdued or given negative returns during the period. READ MORE

Indigo, SpiceJet, Jet Airways: Here's how you can trade in airline stocks

InterGlobe Aviation Ltd (INDIGO): The recent fall of over 10 per cent has dented the positive sentiment in the counter to a great extent. There are chances that the stock will enter a bearish phase. That said, the most significant neckline comes at Rs 1,230, which is 200 days moving average (DMA), and if breached then a slide below Rs 1,000 levels is inevitable. READ MORE

Advisors urge caution as state-owned banks push group's MF products

Banking customers, especially those belonging to state-owned banks, are most likely to be urged by the the lenders' sales teams to invest in mutual fund (MF) products of the bank-sponsored fund house.
 
According to data collated by Prime Database, PSU banks such as Canara Bank, Union Bank, State Bank of India, Bank of Baroda and IDBI Bank (classified recently as private bank), earned 70-100 per cent of their distribution income selling MF products of their mutual fund subsidiaries. READ MORE

MARKET ALERT | REC trades shares of 0.34% eq on the NSE


IndiGo skids 9% on promoter dispute; SpiceJet up 2%. Here's what lies ahead

Shares of IndiGo extended decline and slipped another 9 per cent in the morning trade on Thursday amid spat between promoters of the company over issues of excessive control and corporate governance. SpiceJet, on the other hand, rose as much as 2.29 per cent.
 
At 10:35 am, the stock of IndiGo was trading around 7 per cent lower at Rs 1,304 apiece on the BSE. SpiceJet was ruling half a per cent higher at Rs 120.25 apiece. In comparison, the benchmark S&P BSE Sensex was trading at 38,732 levels, up 175 points or 0.45 per cent. READ MORE

Stock pick by Anand Rathi Financial Services


NEWS ALERT | SEBI calls IniGo's company secretary for a meeting: CNBC TV18

-- SEBI had asked for IndiGo's response by July 19


Zee Entertainment gains 2%


Voltas trading near day's low


Cox & Kings hits lower circuit for 12th straight day on another CP default

Shares of Cox & Kings were locked in lower circuit for twelfth straight trading day, down 5 per cent at Rs 23, in intra-day trade on the BSE on Thursday after the company defaulted on commercial paper of Rs 125 crore. This is the company's third default in the past fortnight, totaling Rs 325 crore. The stock was trading at a new low, and has tanked 54 per cent from the level of Rs 50 on June 25. In comparison, the S&P BSE Sensex dipped 2 per cent during the same period. READ MORE

NEWS ALERT | Govt aiming IPO of National Seeds Corp, Telecom Consultants & Aravali Gypsum: BTVi

-- Wapcos' proposed IPO likely delayed due to legal issues

NEWS ALERT | Aim to raise Rs 300 cr by Oct-end via IPO of 3 PSUs: Govt official, reports BTVi

-- DIPAM likely to appoint lead managers by next month to proposed offers

DCB Bank gains 2%


With founders quarreling in board room, IndiGo can't fly high in the sky

Investors were just starting to enjoy the fruits of a frenetic expansion that saw the no-frills carrier, Asia’s largest, double its capacity in the three years through March. Full-cost rival Jet Airways India Ltd tried to keep up, until it was forced to ground its last plane in April under a truckload of debt. Meanwhile, InterGlobe has put together a cash war chest — net of debt — of nearly $2 billion. READ MORE

Motilal Oswal Financial Services on Trent

Recommendation: BUY

CMP: Rs 435

Target Price: Rs 500 

TRENT is likely to face near-term impact of equity dilution on earnings growth and RoIC. However, over a three-year period, the dilution could drive accelerated growth, which, in our view, is not fully captured in valuations as of now. Implied EV/EBITDA and P/E remain rich at 39x/58x on FY21E. We raise our SOTP-based TP to INR500 (v/s INR440 earlier), valuing Westside and Zara at 26x EV/EBITDA and Star at 1x EV/sales on Sep’21E. Westside and Zara are valued at a 30% premium to industry average. The implied TP is at par with the three-year average. Maintain Buy.

LIC Housing climbs 2%


Oberoi Realty dips 1.3%


Religare Enterprises surges 10% on stake sale in subsidiary to TCG Advisory

Shares of Religare Enterprises were locked in the 10 per cent upper circuit at Rs 42.95 per share on the BSE on Thursday after the company announced its plan to sell Religare Finvest to TCG advisory for an undisclosed amount. Between July 5 and today, the stock has rallied 51 per cent from a level of Rs 28.50 apiece. In comparison, the S&P BSE Sensex has lost 2 per cent during the same period. READ MORE

NEWS ALERT | L&T Construction bags orders in range of Rs 1,000-2,500 cr


MARKET CHECK


Nifty Pharma index is trading 1% higher


DHFL gains on report that lenders may finalise resolution plan today


MARKET ALERT | Prabhudas Lilladher

Vedanta climbs over 2%


Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
REL. COMM. 1.71 -0.02 -1.16 1053433
SUZLON ENERGY 5.07 0.18 3.68 617351
UPL 640.40 6.10 0.96 514869
YES BANK 93.85 0.85 0.91 498381
SPICEJET 120.30 0.70 0.59 478774
» More on Most Active Volume

Aurobindo Pharma gains over 2%

-- Company launched generic of Sensipar tablets in US.


CCL Products inches higher ahead of June quarter numbers


Apollo Hospitals trades 0.2% higher

-- Samsung India Electronics has teamed has joined hands with the Apollo Hospitals Group to launch the 'Samsung-Apollo Mobile Clinic' to provide access to quality healthcare to the less privileged in rural areas.


HDFC Bank trades 0.5% higher


Tech Mahindra slips 1.5%


Rupee hits 11-month high; opens 28 paise higher against US dollar

The rupee on Thursday opened 26 paise higher to hit an 11-month high of 68.30 against the US dollar after the US Federal Reserve hinted at possible rate cuts ahead.
 
The domestic unit on Wednesday declined by 7 paise to close at 68.58, pressured by persistent foreign fund outflows and firming crude oil prices. READ MORE

Nifty IT index is the only index trading lower


Nifty Metal index is the biggest index gainer


Broader market check


Tata Consultancy Services trade flat


Cox & Kings dip 5% on fresh default


BSE Oil & Gas index is trading 0.5% higher


IndiGo slips over 3%


SpiceJet trades higher


YES Bank trading higher


Eicher Motors climbs nearly 1%


NMDC trades flat after trading higher in Pre-open


GTPL Hathway soars 20% on strong Q1 numbers

The company on Wednesday reported 120 per cent YoY jump in its net profit at Rs 294.46 million


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 higher at 68.30/$ vs Wednesday's close of 68.56 against the US dollar

NMDC gains 10% in Pre-open


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


Market at pre-open


Market at pre-open


Stocks to watch

Cox & Kings: Cox & Kings has defaulted on commercial paper of Rs 125 crore, the tour operator informed the stock exchange on Wednesday. This is the third default of the company in the past fortnight, totaling Rs 325 crore.
 
DHFL: Two statutory auditors — Deloitte Haskins & Sells, and Chaturvedi & Shah — may decide to resign ahead of the board meeting. This follows unsatisfactory response to auditors’ queries related to fund deployment by DHFL. READ MORE

Gold imports resume after 4 days as govt reverts to tariff value-based duty

Increase in import duty on gold and silver and removal of certain entries in previous notifications prompted customs officials and the market to assume that duty would now have to be calculated on the basis of transaction value. This created confusion and several importers put their orders on hold. READ MORE

Brokerages turn less bullish on TCS after company misses revenue forecasts

Brokerages have turned less bullish on Tata Consultancy Services (TCS) after the IT services company missed revenue and margins forecasts for the quarter ended June. The number of ‘buy’ ratings for the stock has reduced from 27 to 23, while ‘sell’ calls have increased from 7 to 9. The average 12-month price target has also seen a slight reduction. READ MORE

Axis Bank appoints Citigroup, JPMorgan for $1.3-bn share sale: Sources

India’s third-largest private sector lender has also selected Credit Suisse Group, BNP Paribas, HSBC Holdings, UBS Group and Axis Capital for the proposed offering, the people said, asking not to be identified. Axis Bank can add more arrangers later, they said. The share sale could raise as much as $2 billion, one of the people said. READ MORE

SpiceJet stock may rise as IndiGo promoter dispute goes sour: Analysts

The stock of the country’s largest domestic airline InterGlobe Aviation (IndiGo) fell 11 per cent on Wednesday after one of its founder-promoters, Rakesh Gangwal, wrote a letter to the regulators, citing issues of excessive control and corporate governance. READ MORE

No question of rolling back surcharge on FPI trusts, says Finance Ministry

The government has ruled out a rollback of the ‘super-rich’ tax on foreign portfolio investors (FPIs) organised as trusts or association of persons. The tax on such FPIs will yield an estimated Rs 400 crore, as against the overall revenue gain of Rs 12,000 crore from the surcharge. READ MORE

Co-promoter Gangwal wants expansion of IndiGo board, asks Sebi to intervene

IndiGo co-promoter Rakesh Gangwal wants the company board to be expanded so that the number of independent directors goes up. Gangwal has also asked the Securities and Exchange Board of India (Sebi) to intervene and rewrite the Article of Association (AoA) to ensure that with 37 per cent stake he gets equal rights in the management of the company — a demand that the Rahul Bhatia camp says would be impossible to implement without 75 per cent shareholder support. READ MORE

Crisis-hit DHFL headed for more trouble, auditors may decide to resign

The meeting of board of directors is scheduled for July 13. However, sources said the two statutory auditors — Deloitte Haskins & Sells, and Chaturvedi & Shah — are yet to complete the process of auditing the company’s FY19 financial accounts. In June, DHFL got the market regulator’s nod to postpone announcing its financial results by two weeks. READ MORE

Govt's plan to increase free-float in MNCs to 65% triggers sell-off

Shares of multinational companies (MNCs) have been on a downward slope since the Union Budget. Top MNCs such as Siemens, ABB India, and Honeywell Automation have seen their stock prices correct between 7 and 11 per cent over the past four trading sessions. READ MORE

Reserve Bank working group recommends extension of market hours

An internal working group of the Reserve Bank of India (RBI) on comprehensive review of market timings has suggested calibrated extension of currency market hours, from 9 am to 9 pm for both over-the counter and exchange traded.
 
Presently, the markets close at 5 pm. READ MORE

In third default in 14 days, Cox & Kings misses Rs 125-cr debt payments

The tour operator has been facing a cash crunch resulting in delays in salaries and vendor payments. The International Air Transport Association has suspended the company from selling tickets on credit as it reviews its credit worthiness.
 
“The company is working closely with its lenders to optimise its strong asset base globally and bring the situation back to normal as soon possible,” Cox & Kings said on Wednesday. READ MORE

Recapitalisation of PSU banks will improve investor sentiment: Analysts

Public sector banks (PSBs) have been major beneficiaries of the recently concluded Budget. With a fresh allocation of Rs 70,000 crore towards recapitalisation of PSBs, against Rs 40,000-crore proposed in the interim Budget in February, state-owned banks got a larger share of the kitty. READ MORE

Buy and sell ideas by Sacchitanand Uttekar of Tradebulls Securities

After acting as support for two consecutive sessions, Nifty breached and closed below its 100-DEMA (Double Exponential Moving Average). The index has failed to witness follow through rally post occurrence of “Bullish Hammer” around 100 DEMA which indicates the prevailing downside pressure. The breach and close below 11,650 level of consolidation support distorted prevailing bullish structure in place. Hence, the close below 100 DEMA (11,540) will target gap support range of (11,406-11,426) on an immediate basis. It’s prudent to book profits for existing shorts on a test of gap support and await for bottoming out/reversal formations to occur around the support levels for initiating longs as presumption of reversal for larger move on the upside remains intact. READ MORE

Top Trading Ideas by CapitalVia: Buy Godrej Prop, sell Hindustan Unilever

Nifty View
The markets continued to bleed on Wednesday in response to the not-so-market friendly Union budget that was announced last week. The bears continue to be powerful and Nifty50 showed subdued activity with the span of trading being roughly 120 points. We find the support level to be in the zone of 11,400 to 11,500 and major resistance at 12,000. READ MORE

Bulk deal on NSE as on Wednesday

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


SGX Nifty

At 8:15 am, SGX Nifty was trading 51 points higher at 11,545.5 levels, indicating a positive start to the domestic indices. 

Rupee check

Source: Bloomberg


Oil check

US crude oil futures extended the previous day’s large gains to touch $60.63 per barrel, their highest since May 23. The contract had surged 4.5 per cent on Wednesday after US crude inventories shrank and as major producers cut nearly a third of offshore Gulf of Mexico production ahead of an expected storm. (Reuters)

Asian Markets check


US Market check


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