MARKET WRAP: Nifty settles at fresh closing high of 11,389; PSU banks slip

markets
The benchmark indices ended flat with the Nifty 50 settling at a new closing high on Tuesday amid firm global markets.

The Nifty 50 index settled at a fresh closing high of 11,389, up 2 points. However, the S&P BSE Sensex ended at 37,666, down 26 points. Earlier in the day the S&P BSE Sensex hit a fresh all-time high of 37,876.87 while the Nifty50 index touched its record high level of 11,428.95 in intra-day deals.

Among sectoral indices, the Nifty PSU Bank index ended over 2 per cent lower due to a fall in share prices of Andhra Bank and Punjab National Bank (PNB).

PNB announces quarterly results

PNB reported its second consecutive quarter of loss as the country's second-biggest state-run lender set aside more funds for a massive fraud it disclosed earlier this year.

 
Net loss was Rs 9.40 billion ($136.72 million) for the three months to June 30, compared with a profit of 3.43 billion rupees a year earlier, the bank said in a statement.

Global Markets

A rebound in battered Chinese stock markets helped lift Asian equities, which also drew support from earnings-led gains on Wall Street in a welcome relief for investors grappling with an intensifying Sino-US trade conflict.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.35 per cent. The Shanghai Composite Index rose 1.4 per cent as investors snapped up shares that were hit hard during a four-day losing run. South Korea’s KOSPI rose 0.3 per cent and Japan’s Nikkei added 0.6 per cent.

Oil Prices

Oil prices rose on Tuesday as the United States reintroduced sanctions against major crude exporter Iran, tightening global markets.

Spot Brent crude oil futures were at $74.08 per barrel, up 33 cents (0.4 per cent) from their last close. US West Texas Intermediate (WTI) crude futures were up 20 cents (0.3 per cent) at $69.21 barrel.

(with wire inputs)

3:56 PM IST MARKET COMMENT Jayant Manglik, President, Religare Broking The equity benchmark indices traded in a narrow range, amidst intraday volatility. The Nifty index ended flat to close at 11,391 levels. The broader market indices’ performance was largely in line with the benchmark with BSE Midcap and BSE Smallcap ending with minor losses of 0.2% each. The sector indices exhibited mixed trend with Consumer Durables and Metals being the outperformers whereas, Oil & Gas, Healthcare and Realty were the top losers. Amongst the global markets, both Asian as well as European markets traded higher. With the frontline index trading at record highs, some consolidation cannot be ruled out. We expect stock specific volatility to continue with more corporate earnings scheduled in the next 1-2 weeks. Further, market participants would keep an eye on global developments especially the US-China trade war, progress of monsoon, currency and crude oil price movement  

3:52 PM IST Nifty PSU Bank index ends 2.14% lower. Top losers: COMPANY LATEST PREV CLOSE LOSS() LOSS(%) PUNJAB NATL.BANK 82.85 90.05 -7.20 -8.00 ANDHRA BANK 34.00 36.00 -2.00 -5.56 SYNDICATE BANK 41.90 44.10 -2.20 -4.99 UNION BANK (I) 86.50 90.60 -4.10 -4.53 ORIENTAL BANK 78.80 82.35 -3.55 -4.31

3:49 PM IST Nifty sectoral gainers and losers of the day

3:44 PM IST BSE Sensex: Tata Steel, Asian Paints among top gainers of the day, Adani Ports top loser

3:35 PM IST Markets at close The Nifty 50 index settled at a fresh closing high of 11,389, up 2 points. However, the S&P BSE Sensex ended at 37,666, down 26 points.

3:15 PM IST SoftBank posts 60% gain on Flipkart bet, sets aside $650 million STCG tax Masayoshi Son-led Japanese conglomerate SoftBank on Monday showed a gain of ¥ 164.25 billion (around $1.48 billion) on its balance sheet owing to an increase in the fair value of its stake in Flipkart, translating to 60 per cent return on its last year’s investment in the e-commerce firm. This comes ahead of the closure of the deal that will see SoftBank selling its entire 19.95 per cent stake in Flipkart for around $4 billion to Walmart. READ MORE

3:01 PM IST Intellect Design zooms 20% on multi-million dollar deal with an Asian bank Shares of Intellect Design Arena is locked in the upper circuit of 20% at Rs 244 per share, also their 52-week high on the BSE, after the IT company announced a multi-million dollar deal with a leading bank in Asia with a strong foothold in Singapore, Malaysia, Indonesia, Thailand and China. READ MORE

2:44 PM IST PSU banks trade weak; Andhra Bank, Syndicate Bank, PNB down 5% Shares of public sector undertaking (PSU) banks have fallen by upto 5% on the National Stock Exchange (NSE) on Tuesday in intra-day trade after scam-hit Punjab National Bank (PNB) incurred a net loss for the second consecutive quarter. PNB slipped 5% to Rs 85.60, falling 7% from intra-day high on the BSE, after the bank reported a net loss of Rs 9.4 billion in June quarter (Q1FY19), on higher provision for bad loans. READ MORE  

2:17 PM IST M&M beats estimates for Q1 profits, net surges 63% to Rs 12.2 bn India's Mahindra & Mahindra Ltd reported a better-than-expected 63 per cent surge in first-quarter profit on Tuesday, underpinned by robust sales.   Standalone profit after tax, which does not include share of profit from its unit Mahindra Vehicle Manufacturers Ltd, stood at Rs 12.21 billion ($177.50 million) for the quarter ended June 30, compared with Rs 7.49 billion a year earlier. READ MORE Stock Quote:

1:59 PM IST Market Check INDEX LATEST PREVIOUS CHANGE CHANGE(%) BSE SENSEX 37745.67 37691.89 53.78 0.14 BSE 500 15410.54 15404.19 6.35 0.04 BSE MID-CAP 16200.54 16248.48 -47.94 -0.30 BSE SMALL-CAP 16858.47 16899.52 -41.05 -0.24 S&P BSE LARGECAP 4425.55 4419.32 6.23 0.14 > More on BSE Indices

1:47 PM IST Top gainers in BSEE 500: COMPANY PRICE() CHG() CHG(%) VOLUME T N NEWSPRINT 323.35 23.15 7.71 34288 DEEPAK NITRITE 266.95 16.95 6.78 52330 INOX LEISURE 229.85 14.35 6.66 89369 KRBL 364.55 17.55 5.06 59476 MANPASAND BEVER. 153.60 7.30 4.99 400280 » More on Top Gainers

1:26 PM IST Motherson Sumi first-quarter net profit misses estimates Indian auto parts maker Motherson Sumi Systems Ltd's net profit jumped about 59 percent in the first quarter but fell short of analysts' expectations, hurt by higher expenses. READ MORE Stock Quote:  

LIVE UPDATES

MARKET COMMENT Jayant Manglik, President, Religare Broking

The equity benchmark indices traded in a narrow range, amidst intraday volatility. The Nifty index ended flat to close at 11,391 levels. The broader market indices’ performance was largely in line with the benchmark with BSE Midcap and BSE Smallcap ending with minor losses of 0.2% each. The sector indices exhibited mixed trend with Consumer Durables and Metals being the outperformers whereas, Oil & Gas, Healthcare and Realty were the top losers. Amongst the global markets, both Asian as well as European markets traded higher.

With the frontline index trading at record highs, some consolidation cannot be ruled out. We expect stock specific volatility to continue with more corporate earnings scheduled in the next 1-2 weeks. Further, market participants would keep an eye on global developments especially the US-China trade war, progress of monsoon, currency and crude oil price movement
 
Nifty PSU Bank index ends 2.14% lower. Top losers:

COMPANY LATEST PREV CLOSE LOSS() LOSS(%)
PUNJAB NATL.BANK 82.85 90.05 -7.20 -8.00
ANDHRA BANK 34.00 36.00 -2.00 -5.56
SYNDICATE BANK 41.90 44.10 -2.20 -4.99
UNION BANK (I) 86.50 90.60 -4.10 -4.53
ORIENTAL BANK 78.80 82.35 -3.55 -4.31

Nifty sectoral gainers and losers of the day


BSE Sensex: Tata Steel, Asian Paints among top gainers of the day, Adani Ports top loser


Markets at close

The Nifty 50 index settled at a fresh closing high of 11,389, up 2 points. However, the S&P BSE Sensex ended at 37,666, down 26 points.
SoftBank posts 60% gain on Flipkart bet, sets aside $650 million STCG tax

Masayoshi Son-led Japanese conglomerate SoftBank on Monday showed a gain of ¥ 164.25 billion (around $1.48 billion) on its balance sheet owing to an increase in the fair value of its stake in Flipkart, translating to 60 per cent return on its last year’s investment in the e-commerce firm. This comes ahead of the closure of the deal that will see SoftBank selling its entire 19.95 per cent stake in Flipkart for around $4 billion to Walmart. READ MORE

Intellect Design zooms 20% on multi-million dollar deal with an Asian bank

Shares of Intellect Design Arena is locked in the upper circuit of 20% at Rs 244 per share, also their 52-week high on the BSE, after the IT company announced a multi-million dollar deal with a leading bank in Asia with a strong foothold in Singapore, Malaysia, Indonesia, Thailand and China. READ MORE

PSU banks trade weak; Andhra Bank, Syndicate Bank, PNB down 5%

Shares of public sector undertaking (PSU) banks have fallen by upto 5% on the National Stock Exchange (NSE) on Tuesday in intra-day trade after scam-hit Punjab National Bank (PNB) incurred a net loss for the second consecutive quarter. PNB slipped 5% to Rs 85.60, falling 7% from intra-day high on the BSE, after the bank reported a net loss of Rs 9.4 billion in June quarter (Q1FY19), on higher provision for bad loans. READ MORE
 

M&M beats estimates for Q1 profits, net surges 63% to Rs 12.2 bn

India's Mahindra & Mahindra Ltd reported a better-than-expected 63 per cent surge in first-quarter profit on Tuesday, underpinned by robust sales.
 
Standalone profit after tax, which does not include share of profit from its unit Mahindra Vehicle Manufacturers Ltd, stood at Rs 12.21 billion ($177.50 million) for the quarter ended June 30, compared with Rs 7.49 billion a year earlier. READ MORE

Stock Quote:


Market Check

INDEX LATEST PREVIOUS CHANGE CHANGE(%)
BSE SENSEX 37745.67 37691.89 53.78 0.14
BSE 500 15410.54 15404.19 6.35 0.04
BSE MID-CAP 16200.54 16248.48 -47.94 -0.30
BSE SMALL-CAP 16858.47 16899.52 -41.05 -0.24
S&P BSE LARGECAP 4425.55 4419.32 6.23 0.14
> More on BSE Indices
Top gainers in BSEE 500:

COMPANY PRICE() CHG() CHG(%) VOLUME
T N NEWSPRINT 323.35 23.15 7.71 34288
DEEPAK NITRITE 266.95 16.95 6.78 52330
INOX LEISURE 229.85 14.35 6.66 89369
KRBL 364.55 17.55 5.06 59476
MANPASAND BEVER. 153.60 7.30 4.99 400280
» More on Top Gainers
Motherson Sumi first-quarter net profit misses estimates

Indian auto parts maker Motherson Sumi Systems Ltd's net profit jumped about 59 percent in the first quarter but fell short of analysts' expectations, hurt by higher expenses. READ MORE

Stock Quote:
 

At Rs 9.4 bn, PNB posts straight quarterly loss on fraud-related provisions

Punjab National Bank reported its second consecutive quarter of loss as the country's second-biggest state-run lender set aside more funds for a massive fraud it disclosed earlier this year. Net loss was Rs 9.40 billion ($136.72 million) for the three months to June 30, compared with a profit of 3.43 billion rupees a year earlier, the bank said in a statement. READ MORE

Stock Quote:


Uttar Pradesh sugar mills press for incentive of Rs 40 per quintal

The Uttar Pradesh Sugar Mills Association (UPSMA) wrote a letter to the chief minister on Monday, reiterating an earlier plea for a financial rescue package. This comes four days after the promoters of top mills in the state met the CM with a plea for a bailout package to settle the Rs 110 billion in payments backlog to sugarcane farmers. Their letter pleads for urgency, with the next cane crushing season approaching. READ MORE

This Tata Group stock has zoomed over 200% in six months to Rs 338

Shares of Nelco hit a decade high of Rs 338, up 5% on the BSE in otherwise subdued market, extending its past 12 days 29% rally, after the company’s consolidated net profit nearly doubled to Rs 39.3 million in June quarter (Q1FY19). It had profit of Rs 19.9 million in the same quarter last fiscal. READ MORE

100-year gift: Britannia to issue bonus debentures of Rs 7.2 billion

On its centenary year, the board of Britannia Industries has approved issuance of secured redeemable non-convertible debentures as bonus debentures of Rs 60 in the ratio of one such debenture for every equity share. Also, it has proposed a share split that the board will decide in the next meeting on August 23. READ MORE

Q1 results: New launches to spur Britannia volumes, sales jump 14%

Driven by strong volume growth, Britannia reported June quarter numbers that were broadly in line with estimates. On the back of a 12.5 per cent volume growth and a better product mix, net sales of the company were up 14 per cent, albeit on a lower base.
 
The company had reported volume growth of three per cent in year-ago quarter due to disruption of the trade channel, on account of the goods and services tax roll-out. READ MORE

Market Check

INDEX LATEST PREVIOUS CHANGE CHANGE(%)
BSE SENSEX 37605.22 37691.89 -86.67 -0.23
BSE 500 15362.25 15404.19 -41.94 -0.27
BSE MID-CAP 16156.28 16248.48 -92.20 -0.57
BSE SMALL-CAP 16813.67 16899.52 -85.85 -0.51
S&P BSE LARGECAP 4410.67 4419.32 -8.65 -0.20
> More on BSE Indices
Adani Ports slips 6% post Q1 results

Shares of Adani Ports and Special Economic Zone have slipped by 6% to Rs 375 per share on the BSE in intra-day trade after the company reported its consolidated net profit at Rs 6.97 billion in June quarter (Q1FY19), due to provision of mark to market loss of Rs 3.83 billion during the quarter. It had a profit of Rs 7.6 billion in the same quarter during the last fiscal. READ MORE

A time for caution in global markets?

Most of the more seasoned investors I speak with globally are very cautious on markets today. They feel there are more risks than opportunities, and most, especially those running proprietary capital are sitting on large cash balances. This puts them at odds with the current mood in global capital markets.
 
Most indices globally are near their highs, investor sentiment seems to be optimistic and earnings are booming. Analysts remain very bullish on the growth outlook for their companies. READ MORE

Parag Milk Foods surges 8% on strong Q1 results
 
Parag Milk Foods has surged 8% to Rs 344 on the BSE in intra-day trade after the company reported 169% year on year (yoy) growth in consolidated net profit at Rs 283 million in June quarter (Q1FY19), on healthy revenue growth. It had profit of Rs 105 million in the same quarter last year.
 
The consolidated revenue from operations during the quarter increased 33% yoy at Rs 5.49 billion as compared to Rs 4.13 billion in year ago quarter. Growth is driven by an increase in revenue from milk products of 41% yoy which is led by growth in key product categories. READ MORE
Top BSE500 gainers

COMPANY PRICE() CHG() CHG(%) VOLUME
KRBL 377.80 30.80 8.88 27778
BASF INDIA 2057.55 102.75 5.26 4502
MANPASAND BEVER. 153.60 7.30 4.99 14819
8K MILES 368.10 17.50 4.99 7520
KWALITY 16.69 0.79 4.97 1893803
» More on Top Gainers
Adani Green, VIP Industries fall after being placed under ASM
 
Shares of Adani Green Energy, VIP Industries and Morepen Laboratories have fallen by up to 5% on the BSE after these stocks were placed under additional surveillance measures (ASM) by the market regulator Securities and Exchange Board of India (SEBI) with effect from today.
 
According to the new guidelines, these stocks will be placed in 5% price band and 100% margin will be applicable on these stocks. The exchanges will review these stocks on bimonthly basis for the applicability of ASM Framework. READ MORE
Q1 results: New launches to spur Britannia volumes, sales jump 14%
 
Driven by strong volume growth, Britannia reported June quarter numbers that were broadly in line with estimates. On the back of a 12.5 per cent volume growth and a better product mix, net sales of the company were up 14 per cent, albeit on a lower base.
 
The company had reported volume growth of three per cent in year-ago quarter due to disruption of the trade channel, on account of the goods and services tax roll-out. READ MORE
Higher realisations come as a boost to ONGC; volume growth may pick up
 
Improving realisations was the main factor responsible for ONGC’s better-than-expected performance in the June quarter, at both revenue and operating profit levels. And the trend is likely to remain positive, which is why analysts are positive on the company.
 
Reaping benefits of improving crude oil and natural gas prices, ONGC saw a strong jump in realisations. Its net realisation for oil at $74.2 a barrel rose 46 per cent, while gas realisation at $3.1 per mmbtu (million metric British thermal unit) was up 19 per cent, over the year-ago quarter. READ MORE
Market check

Index Current Pt. Change % Change
 
S&P BSE SENSEX 37,758.85 +66.96 +0.18
 
S&P BSE SENSEX 50 11,936.32 +21.61 +0.18
 
S&P BSE SENSEX Next 50 34,038.21 +135.51 +0.40
 
S&P BSE 100 11,688.41 +24.94 +0.21
 
S&P BSE Bharat 22 Index 3,624.10 +14.54 +0.40

MFs go slow on equities in July; net buying drops to 17-month low
 
Mutual fund managers were seen going slow with their equity purchases in July, amid the benchmark indices surging to record highs. Equity schemes bought shares worth Rs 40 billion last month - the lowest since February 2017.
 
Net investments were 57 per cent lower than the preceding month's tally of Rs 92 billion and 67 per cent lower than the one-year monthly average of Rs 122 billion. Industry experts attribute the drop in equity investments to slowing inflows into equity schemes. READ MORE
NEWS ALERT First round of renewed US sanctions on Iran take effect
Devangshu Dutta: Markets upbeat but uptrend narrow
 
Good earnings reports, a lenient Fed and stabilising crude prices — all represented positive new for the market. A study by Motilal Oswal says that the Q1 results thus far indicate that earnings have either met or beaten expectations in 62 out of the 105 corporates under coverage.
 
Major central banks such as The Bank of Japan, the European Central Bank and the US Federal Reserve — all held policy rates in their latest policy updates. That meant a weaker USD. READ MORE
Nifty sectoral trend


BSE Sensex heatmap


Market at open
 
The S&P BSE Sensex opened at fresh record high of  37,849.21. At 9:16 AM, the index was trading at 37,778, up 86 points while the broader Nifty50 was ruling at 11,413, up 26 points.
Markets at pre-open

Index Current Pt. Change % Change
 
S&P BSE SENSEX 37,776.65 +84.76 +0.22
 
S&P BSE SENSEX 50 11,942.17 +27.46 +0.23
 
S&P BSE SENSEX Next 50 33,986.63 +83.93 +0.25
 
S&P BSE 100 11,690.82 +27.35 +0.23
 
S&P BSE Bharat 22 Index 3,617.24 +7.68 +0.21

Top trading ideas by Prabhudas Lilladher:
 
BUY GREENPLY INDUSTRIES
CMP: Rs 218.35
TARGET: Rs 248
STOP LOSS: Rs 203
 
The stock has witnessed a huge erosion from the high made at 378 levels and has currently shown signs of bottoming out at around 195 - 198 levels and indicating a bounce back to make the chart look very attractive. The RSI also has turned its trend from the highly oversold zone and has signaled a buy to make the bias positive and has got potential to rise further in the coming days. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 248 keeping a stop loss of 203.

Click here for more
Nifty outlook by Prabhudas Lilladher
 
Indices though in overbought zone continue to be in all-time high levels along with Bank Nifty. There is a possibility of market witnessing a sideways move to a consolidation at these levels with 11,200 as a strong support level. The support for the day is seen at 11,320 while resistance is seen at 11,440. If the benchmark index is to take a breather, we would see some movement in mid-cap stocks.
Top trading ideas by Anand Rathi Research:
 
JSW ENERGY: BUY
TARGET: Rs 72
STOP LOSS: Rs 65.50
 
The stock has provided a clear breakout from the falling wedge pattern with a buy crossover in its momentum indicator MACD. The stock has also completed the retest of the pattern, hence the probability of an upside from here on is high. Click here for more
Nifty outlook by Anand Rathi Research
 
NIFTY: BUY
TARGET: 11,460
STOP LOSS: 11,335
 
The Index has closed in the positive territory in the last trading session and with that the series of higher tops and higher bottoms continues. The momentum indicator is also well into buy mode both on the daily as well as hourly charts which is quite a positive sign, hence we continue to maintain our short term as well as medium term bias positive for the target of 11,460 with a reversal pegged below 11,335
Today's picks
 
Tata Motors 
Current price: Rs 254 
Target price: Rs 250 
Keep a stop at Rs 257 and go short. Add to the position between Rs 250 and Rs 251. Book profits at Rs 249.
 
GAIL 
Current price: Rs 376
Target price: Rs 382
Keep a stop at Rs 373 and go long. Add to the position between Rs 380 and Rs 381. Book profits at Rs 382.

Click here for more
Oil rises after OPEC sources say Saudi crude output fell
 
Oil futures gained on Monday after OPEC sources said Saudi crude production unexpectedly fell in July, raising concerns about global oil supplies as the United States prepares to reinstate sanctions against major exporter Iran.
 
Brent crude futures rose 54 cents to settle at $73.75 a barrel, while US West Texas Intermediate (WTI) crude futures rose 52 cents to settle at $69.01 a barrel.
SGX Nifty
 
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 14.5 points or 0.13 per cent. Nifty futures were trading around 11,444-level on the Singaporean Exchange.
Asian stocks flat
 
Asian stocks were largely steady on Tuesday, with worries over the US-China trade conflict offsetting support from earnings-led gains on Wall Street. MSCI’s broadest index of Asia-Pacific shares outside Japan was almost flat. Australian stocks dipped 0.2 per cent, South Korea's KOSPI rose 0.05 per cent and Japan's Nikkei added 0.25 per cent.
Wall Street closes higher as strong earnings cheer investors
 
The three major US stock indexes closed higher on Monday as investors applauded a strong US earnings season with results from Berkshire Hathaway impressing and Facebook lifting Nasdaq after a report it was planning new services.
 
The Dow Jones Industrial Average rose 39.6 points, or 0.16 per cent, to 25,502.18, the S&P 500 gained 10.05 points, or 0.35 per cent, to 2,850.4 and the Nasdaq Composite added 47.66 points, or 0.61 per cent, to 7,859.68.
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