MARKET WRAP: Sensex settles at record closing high of 37,888; RIL up 2.85%

Markets, Stocks
The benchmark indices settled at new record closing highs on Wednesday led by a rise in the shares of financial stocks and Reliance Industries (RIL).

The S&P BSE Sensex settled at a record high of 37,888, up 222 points, while the broader Nifty 50 index settled at a new high of 11,450, up 61 points. In intra-day deals, the S&P BSE Sensex hit a fresh all-time high of 37,931.42 while the Nifty50 index touched its record high level of 11,459.95.

Market heavyweight RIL ended the day at Rs 1,217.25 on the BSE, rising 2.85 per cent from the previous close. The stock had hit a new high of Rs 1,222 in intra-day deals.

Among sectoral indices, the Nifty PSU Bank ended nearly 1 per cent higher led by State Bank of India and Bank of baroda.

Global Markets

Asian shares extended their recovery into a fourth day on Wednesday, buoyed by strong US earnings and expectations that Beijing will ramp up fiscal stimulus to cushion the impact of its worsening trade dispute with Washington.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.3 per cent, led by Taiwan, while Japan's Nikkei ticked down 0.1 per cent.

Oil Prices

Oil prices held steady on Wednesday, supported by a report of rising US crude inventories as well as the introduction of sanctions against Iran.

Front-month US West Texas Intermediate (WTI) crude futures were at $69.28 per barrel, up 11 cents from their last settlement. Brent crude oil futures were at $74.61 per barrel, down 4 cents from their last close.

(With inputs from Reuters)


3:47 PM IST Nifty PSU Bank index ends 0.89% higher. Top gainers: COMPANY LATEST PREV CLOSE GAIN() GAIN(%) BANK OF BARODA 148.60 146.15 2.45 1.68 ST BK OF INDIA 308.70 304.05 4.65 1.53 IDBI BANK 62.25 61.90 0.35 0.57

3:44 PM IST Nifty sectoral gainers of the day

3:40 PM IST BSE Sensex: ONGC, RIL, ICICI Bank, SBI among top gainers of the day

3:35 PM IST Markets at close The S&P BSE Sensex settled at a record high of 37,888, up 222 points, while the broader Nifty 50 index settled at a new high of 11,450, up 61 points. In intra-day deals, the S&P BSE Sensex hit a fresh all-time high of 37,931.42 while the Nifty50 index touched its record high level of 11,459.95.

3:24 PM IST Lupin slips 5% as Q1 profit misses Street's estimate Shares of Lupin have slipped 5% to Rs 821 per share on the BSE in intra-day trade after the company reported 43% year-on-year drop in consolidated net profit of Rs 2.03 billion in June quarter (Q1FY19), hit by fall in sales in the US and Japan. The pharmaceutical company had profit of Rs 3.58 billion in year ago quarter. READ MORE

3:12 PM IST Investing in gold? Rising dollar to dampen your short-term return A rising dollar is set to limit the return on gold investment in the near-term, despite geopolitical tensions rising abroad. With the US Federal Reserve expected to raise interest rates again next month, the dollar might continue to fetch better returns than other asset classes, including gold and silver, in the near-term. READ MORE

2:58 PM IST Why analysts are sceptic about India's record-breaking stock rally When it comes to the Indian stock market, analysts are not following investors' exuberance. A booming economy and encouraging corporate results have sent the benchmark S&P BSE Sensex racing past 22 record highs this year. While gains have accelerated in the past six weeks, analysts have failed to keep up, and the average price estimate for members of the gauge is now just 14 per cent above their stock prices, the narrowest gap since February, data compiled by Bloomberg show. READ MORE

2:42 PM IST India's MF industry one of the costliest globally: Ex-Sebi chief UK Sinha The asset management industry in India is one of the costliest and there is a lot of scope to further bring down the costs of investing, said UK Sinha, former chairman, Securities and Exchange Board of India (Sebi). READ MORE

2:27 PM IST Reliance Industries hits new high; soars 37% thus far in FY19 Shares of Reliance Industries (RIL) hit a new high of Rs 1,208 per share, up 2% on the BSE on Wednesday, surpassing its previous high of Rs 1,203 recorded on August 1, 2018 in intra-day trade. READ MORE

2:15 PM IST M&M raises tractor volume forecast, posts 23% revenue growth to Rs 133 bn Powered by strong volume growth in tractors and commercial vehicles (CVs), albeit on a low base, Mahindra & Mahindra posted robust 23 per cent growth in revenue to Rs 133 billion for the June quarter. While volume growth in the automobile segment was 19.6 per cent, that of the farm equipment segment was up 18 per cent over the year-before quarter. READ MORE

2:01 PM IST Market Check INDEX LATEST PREVIOUS CHANGE CHANGE(%) BSE SENSEX 37891.56 37665.80 225.76 0.60 BSE 500 15471.85 15391.07 80.78 0.52 BSE MID-CAP 16269.13 16219.24 49.89 0.31 BSE SMALL-CAP 16944.53 16862.46 82.07 0.49 S&P BSE LARGECAP 4441.66 4416.90 24.76 0.56 > More on BSE Indices

1:45 PM IST MF retail assets crossing Rs 10 trn a big achievement: Amfi's N S Venkatesh The retail segment of the Rs23-trillion mutual fund (MF) industry is growing at a much faster clip. N S Venkatesh, chief executive of the Association of Mutual Funds in India (Amfi), talks to Jash Kriplani on the latest milestones. READ MORE N S Venkatesh

LIVE UPDATES

Nifty PSU Bank index ends 0.89% higher. Top gainers:

COMPANY LATEST PREV CLOSE GAIN() GAIN(%)
BANK OF BARODA 148.60 146.15 2.45 1.68
ST BK OF INDIA 308.70 304.05 4.65 1.53
IDBI BANK 62.25 61.90 0.35 0.57

Nifty sectoral gainers of the day


BSE Sensex: ONGC, RIL, ICICI Bank, SBI among top gainers of the day


Markets at close

The S&P BSE Sensex settled at a record high of 37,888, up 222 points, while the broader Nifty 50 index settled at a new high of 11,450, up 61 points. In intra-day deals, the S&P BSE Sensex hit a fresh all-time high of 37,931.42 while the Nifty50 index touched its record high level of 11,459.95.
Lupin slips 5% as Q1 profit misses Street's estimate

Shares of Lupin have slipped 5% to Rs 821 per share on the BSE in intra-day trade after the company reported 43% year-on-year drop in consolidated net profit of Rs 2.03 billion in June quarter (Q1FY19), hit by fall in sales in the US and Japan. The pharmaceutical company had profit of Rs 3.58 billion in year ago quarter. READ MORE

Investing in gold? Rising dollar to dampen your short-term return

A rising dollar is set to limit the return on gold investment in the near-term, despite geopolitical tensions rising abroad. With the US Federal Reserve expected to raise interest rates again next month, the dollar might continue to fetch better returns than other asset classes, including gold and silver, in the near-term. READ MORE
Why analysts are sceptic about India's record-breaking stock rally

When it comes to the Indian stock market, analysts are not following investors' exuberance. A booming economy and encouraging corporate results have sent the benchmark S&P BSE Sensex racing past 22 record highs this year. While gains have accelerated in the past six weeks, analysts have failed to keep up, and the average price estimate for members of the gauge is now just 14 per cent above their stock prices, the narrowest gap since February, data compiled by Bloomberg show. READ MORE

India's MF industry one of the costliest globally: Ex-Sebi chief UK Sinha

The asset management industry in India is one of the costliest and there is a lot of scope to further bring down the costs of investing, said UK Sinha, former chairman, Securities and Exchange Board of India (Sebi). READ MORE

Reliance Industries hits new high; soars 37% thus far in FY19

Shares of Reliance Industries (RIL) hit a new high of Rs 1,208 per share, up 2% on the BSE on Wednesday, surpassing its previous high of Rs 1,203 recorded on August 1, 2018 in intra-day trade. READ MORE

M&M raises tractor volume forecast, posts 23% revenue growth to Rs 133 bn

Powered by strong volume growth in tractors and commercial vehicles (CVs), albeit on a low base, Mahindra & Mahindra posted robust 23 per cent growth in revenue to Rs 133 billion for the June quarter. While volume growth in the automobile segment was 19.6 per cent, that of the farm equipment segment was up 18 per cent over the year-before quarter. READ MORE

Market Check

INDEX LATEST PREVIOUS CHANGE CHANGE(%)
BSE SENSEX 37891.56 37665.80 225.76 0.60
BSE 500 15471.85 15391.07 80.78 0.52
BSE MID-CAP 16269.13 16219.24 49.89 0.31
BSE SMALL-CAP 16944.53 16862.46 82.07 0.49
S&P BSE LARGECAP 4441.66 4416.90 24.76 0.56
> More on BSE Indices
MF retail assets crossing Rs 10 trn a big achievement: Amfi's N S Venkatesh

The retail segment of the Rs23-trillion mutual fund (MF) industry is growing at a much faster clip. N S Venkatesh, chief executive of the Association of Mutual Funds in India (Amfi), talks to Jash Kriplani on the latest milestones. READ MORE
N S Venkatesh

IMF says India's economy is an elephant that's starting to run, flags risks

India is on track to hold its position as one of the world’s fastest-growing economies as reforms start to pay off, according to the International Monetary Fund.
 
The $2.6 trillion economy was described by Ranil Salgado, the IMF’s mission chief for India, as an elephant starting to run, with growth forecast at 7.3 per cent in the fiscal year through March 2019 and 7.5 per cent in the year after that. The nation accounts for about 15 per cent of global growth, according to the Washington-based fund. READ MORE

Britannia, ITC to hike product prices on account of rising wheat price

Sharp short-term rise in wheat prices is burdening manufacturers of products like atta and biscuits, who, in turn, pass on the increased cost to the customer. Britannia is considering price hike while ITC, another big procurer of wheat, is also mulling similar move in Aashirvaad Atta and its variants. Smaller manufacturers of wheat and other products like bread etc may also be forced to pass on the increased burden. READ MORE

MNC pharma in focus; Merck, Novartis India, GSK Pharma hit 52-week highs

Shares of multinational (MNC) pharmaceutical companies have rallied by up to 13%, hitting their respective 52-week highs on the BSE in intra-day trade on Wednesday after reporting a strong financial result for the quarter ended June 2018. READ MORE

Companies conduct analyst meets at the rate of two a day as markets soar

Reaching out to their investors seems a major priority for companies during this bull run, also the first one in which data on meets has been made available. Companies are conducting analyst and investor meets at the rate of up to twice or thrice a day, shows an analysis of investor meet disclosures collated by corporate tracker Prime Database (nseinfobase.com). READ MORE

Incumbent distributors confident despite talks of Paytm's MF foray

The widely heralded Jio moment of the mutual fund industry is right around the corner. Paytm is set to go live with its mutual fund distribution platform, Paytm Money, anytime this month. However, mutual fund distributors, which at the last count accounted for Rs 1.8 trillion of industry assets, are confident that there is no need for them to reshuffle their business model and reiterated the importance of timely advice for investors. READ MORE

SpiceJet hits 52-week low; stock skids 37% in three months

Shares of SpiceJet hit a 52-week low of Rs 89.20, down 3%, extending its 17% decline in past 10 trading sessions on the BSE, in otherwise strong market on concerns of weak set of financial numbers for the quarter ending June 2018 (Q1FY19). Indian budget airline not yet declare the date for announcement of its quarterly numbers. READ MORE

Markets at noon

INDEX LATEST PREVIOUS CHANGE CHANGE(%)
NIFTY 50 11432.00 11389.45 42.55 0.37
NIFTY 500 9741.00 9704.80 36.20 0.37
NIFTY MIDCAP 100 19190.25 19145.55 44.70 0.23
NIFTY SMALL 100 7584.05 7532.45 51.60 0.69
INDIA VIX 12.55 12.58 -0.03 -0.24
> More on NSE Indices
PNB posts Rs 9.4 bn Q1 loss: Investors awaiting asset quality relief
 
Scam-hit Punjab National Bank’s (PNB’s) operational performance in the June quarter (Q1), announced on Tuesday, appears to stay ahead of the Street’s expectations, with the actual net loss being Rs9.4 billion compared to the expected loss of Rs23.4 billion (Bloomberg consensus). Even other operating metrics such as net interest income or NII (up 21.7 per cent year-on-year to Rs46.9 billion) and operating profit (up 30.4 per cent year-on-year to Rs42 billion) were ahead of the estimates. READ MORE
Edelweiss Financial dips 7% on disappointing Q1 results
 
Edelweiss Financial Services dipped 7% to Rs 303 on the BSE in intra-day trade after the company reported a lower-than-expected 31% year on year (YoY) growth in consolidated net profit at Rs 2.64 billion in June quarter (Q1FY19).
 
The company’s insurance business reported a net loss of Rs 460 million during the quarter against loss of Rs 240 million in year ago quarter. Excluding insurance, net profit grew 37% on YoY basis. READ MORE
Net inflow into equity mutual fund schemes up 28% to Rs 106 bn in July
 
Net inflow into equity mutual fund schemes, including tax-saving and arbitrage schemes, rose 28 per cent to Rs106 billion in July, compared to Rs82 billion in June.
 
The inflow, however, was 27 per cent below the past 12-month average of Rs145 billion, shows data from the Association of Mutual Funds in India (Amfi). Market experts say inflow had moderated on account of several events over recent months. READ MORE
Volume outlook spells gains for gas utilities; Gujarat Gas, IGL stocks gain
 
Shares of gas utilities have seen sharp gains since the start of July. Gujarat Gas, Mahanagar Gas (MGL) and Indraprastha Gas (IGL) have gained 7-18 per cent during this period, and there could be more gains ahead, suggest analysts.
 
First, the outlook on volume growth remains robust, supported by factors such as favourable government policies, improving supplies of imported gas, the cost-effectiveness of CNG (compressed natural gas) as a fuel, lower penetration levels and an increasing piped gas (PNG) network. READ MORE
M&M raises tractor volume forecast, posts 23% revenue growth to Rs 133 bn
 
Powered by strong volume growth in tractors and commercial vehicles (CVs), albeit on a low base, Mahindra & Mahindra posted robust 23 per cent growth in revenue to Rs 133 billion for the June quarter. While volume growth in the automobile segment was 19.6 per cent, that of the farm equipment segment was up 18 per cent over the year-before quarter.
 
The utility vehicle (UV) portfolio (43 per cent of automobile volume) continued to underperform, with growth a little under six per cent. All other segments in the automobile portfolio had double-digit growth. READ MORE
HDFC AMC's high valuation to stay
 
Should investors cash out of the HDFC Asset Management Company stock after its stupendous listing was a question in most investor forums. While Monday’s 65 per cent gain on its market debut could have prompted many to opt out, a large section of analysts believe otherwise. “Book-profit was the call many had on Avendus Supermarket (D-Mart’s parent company) soon after its listing.
 
However, it has had a terrific climb since then. Investors could be repeating the mistake with HDFC AMC,” warns a senior analyst with a foreign brokerage. READ MORE
Mphasis falls 4% post June-quarter results
 
Mphasis was down 4% to Rs 1,149 on the BSE in early morning trade on Wednesday even after the IT Company reported in line with 8.7% quarter on quarter (QoQ) growth in consolidated net profit at Rs 2.58 billion in June quarter (Q1FY19). It had profit of Rs 2.38 billion in March quarter (Q4FY18).
 
Gross revenue grew 7.0% QoQ at Rs 18.20 billion during the quarter. In constant currency terms, growth was 2.9% QoQ. Excluding one-time revenue from India Government contract in Q4 FY18, gross revenue grew 3.6% QoQ in constant currency terms, which was in line with an analyst estimates. READ MORE
Market Check

INDEX LATEST PREVIOUS CHANGE CHANGE(%)
NIFTY 50 11401.95 11389.45 12.50 0.11
NIFTY 500 9717.80 9704.80 13.00 0.13
NIFTY MIDCAP 100 19160.00 19145.55 14.45 0.08
NIFTY SMALL 100 7565.20 7532.45 32.75 0.43
INDIA VIX 12.71 12.58 0.13 1.03
> More on NSE Indices
IPO Watch CreditAccess Grameen IPO opens today. Should you subscribe?
 
Focused on providing micro-loans to women customers mostly in rural India, CreditAccess Grameen Limited (CAGL), according to CRISIL Research, is the third largest NBFC-MFI in the country in terms of gross loan portfolio as of March 31, 2017. It has a network of 516 branches spread across 132 districts in eight states. Karnataka and Maharashtra contribute to around 86% of its overall loan book. As on Mar18, it has a loan book of Rs 50 billion spread across 2.2 million clients. READ MORE
WEB EXCLUSIVE Analysts expect a bumpy ride for auto stocks
 
Auto-makers have recorded a healthy sales numbers in the first half of calendar year 2018 (CY18) with all the three segments – passenger vehicles (PVs), two-wheelers and commercial vehicles (CVs) witnessing double-digit growth, as compared to the same period last year.
 
While sales volume in the PV segment grew 13 per cent year-on-year (y-o-y) in H1CY18, growth in the CV and two-wheeler segment stood at 39 per cent and 20 per cent respectively, data shows. READ MORE

Maruti Suzuki, Hyundai, Tata Motors and Toyota all reported double-digit growth

Nifty sectoral trend


BSE Sensex heatmap


Market at open
 
At 9:17 AM, the S&P BSE Sensex was trading at 37,762, up 97 points while the broader Nifty50 was ruling at 11,421, up 31 points.
Markets at pre-open

Index Current Pt. Change % Change
 
S&P BSE SENSEX 37,726.17 +60.37 +0.16
 
S&P BSE SENSEX 50 11,929.79 +17.63 +0.15
 
S&P BSE SENSEX Next 50 33,940.14 +67.25 +0.20
 
S&P BSE 100 11,677.92 +18.11 +0.16
 
S&P BSE Bharat 22 Index 3,593.81 +5.41 +0.15

Technical calls by HDFC Securities:
 
Buy Everest Industries
CMP: Rs 523
Target Rs 590
Stop-loss Rs 470
 
The stock price has broken out from the “Flag” pattern on the weekly chart with a significant jump in volumes. The stock has been taking support on its 20-week exponential moving average. Primary trend of the stock has been bullish on its long-term charts. Recently stock price has claimed a level above the crucial resistance of its 200 DMA. We recommend buying Everest Industries for the upside target of 590, keeping SL at 470.

Click here for more
Nifty outlook by HDFC Securities
 
Nifty is holding its uptrend and trading around its all-time high. Nifty has achieved our anticipated target of 11,395 and now has been consolidating for last two sessions. Close above 11,395 in Nifty would push it towards the next target of 10,768. On the downside 11,300 is the first support followed by positional support at 11,200.
Top trading ideas by Prabhudas Lilladher:
 
BUY CHOLA FINANCE
CMP: Rs 1,438
TARGET: Rs 1,560
STOP LOSS: Rs 1,400
 
The stock has been moving around the significant 200 DMA moving average taking a good support and we anticipate a further upward movement in the coming days with RSI also consolidating around the oversold zone and gaining the potential to make a bounce in the upward direction. The volume has been consistent and with the chart looking attractive, we recommend a buy in this stock for an upside target of 1560 keeping a stop loss of 1400.

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Nifty outlook by Prabhudas Lilladher:
 
Nifty continues to consolidate since the past 3 days with a close nearly at the same level. The support for the day lies at 37,440/11,320 while resistance is seen at 37,830/11,440. Bank Nifty would have a range of 27,620-28,100. Among the Auto sector, Maruti and M&M look promising from these levels. HDFC twins along with Kotak Bank should do well to contribute to Bank Nifty. The mid-cap sector witnessed some profit booking, but overall a positive view is maintained.
178 companies to report June quarter numbers today
 
Corporate results will be in focus on Wednesday. On the earnings front, 178 companies are scheduled to report their results for June quarter which include companies like 8K Miles, Aditya Birla, APL Apollo, BEML, BPCL, City Union Bank, HCC, HPCL, Indian Bank, Lupin, Natco Pharma, NALCO, Siemens and Thermax among others.
Oil prices steady on falling US crude stocks, Iran sanctions
 
Oil prices held steady on Wednesday, supported by a report of rising U.S. crude inventories as well as the introduction of sanctions against Iran.
 
Front-month US West Texas Intermediate (WTI) crude futures CLc1 were at $69.21 per barrel, up 4 cents from their last settlement. Brent crude oil futures LCOc1 were at $74.63 per barrel, down two cents after a 90 cent gain in the previous session.
SGX Nifty
 
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 5 points or 0.04 per cent. Nifty futures were trading around 11,431-level on the Singaporean Exchange.
Asian shares extend recovery on earnings, China policy hopes
 
Asian shares rose on Wednesday on the back of firmer Wall Street earnings while expectations for increased Chinese stimulus helped take the edge off wider concerns about the worsening Sino-US trade dispute. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.22 per cent while Japan's Nikkei ticked up 0.05 per cent.
US markets end higher; S&P 500 closer to record high
 
The S&P 500 inched nearer to a record high on Tuesday, lifted by Amazon, Alphabet and Microsoft, and by a strong second-quarter earnings season that fuelled optimism about the US economy’s strength.
 
The Dow Jones Industrial Average rose 0.5 per cent to end the day at 25,628.91 points. The S&P 500 ended the session at 2,858.45, just short of its January record of 2,872.87. The Nasdaq Composite added 0.31 per cent to 7,883.66.
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