MARKET WRAP: Record closing high for Sensex at 37,692; bank stocks rally

Photo: Shutterstock.com
The benchmark indices settled at record closing highs on Monday, after rallying for the to a second consecutive session led by rise in financial stocks, especially the public sector banks (PSBs).

The S&P BSE Sensex settled at a record high of 37,692, up 136 points, while the broader Nifty 50 index settled at a new high of 11,387, up 26 points. In intra-day deals, the S&P BSE Sensex hit a fresh all-time high of 37,805.25 while the Nifty50 index touched its record high level of 11,427.65.

Among individual stocks, Axis Bank, State Bank of India (SBI) and ICICI Bank were among the top gainers in the BSE Sensex, settling higher in a range of 3 -4 per cent. The Nifty PSU Bank index settled over 2.5% higher led by rise in Indian Bank and SBI.

GLOBAL MARKETS

Asian shares pared gains on Monday as Chinese stocks swung into negative territory, dragged lower by the escalating Sino-US trade war, though Beijing’s efforts to stop sharp declines in the yuan helped support the currency.

MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.3 per cent, after having risen about 1 per cent earlier in the day. Chinese shares turned negative with the blue-chip share index CSI 300 and Shanghai's SSE Composite down more than 1 per cent each. Japan's Nikkei and South Korea's Kospi index slipped 0.1 per cent. Hong Kong's Hang Seng index rose 0.5 per cent.

 
MONSOON

The monsoon is also likely to play a key role in determining the direction the markets take during the week. The IMD has already forecast that rains will be normal in August and September, boosting growth prospects of the rural economy.

(with Reuters inputs)

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

3:48 PM IST BSE Sensex: Axis Bank, ICICI Bank, SBI among top gainers of the day

3:46 PM IST Market at close The S&P BSE Sensex settled at a record high of 37,692, up 136 points, while the broader Nifty 50 index settled at a new high of 11,387, up 26 points.

3:18 PM IST Vinati Organics hits upper circuit of 20% as Q1 profit doubles Shares of Vinati Organics are locked in upper circuit of 20% at Rs 1,188 per share, also their new high on the BSE, after the company reported a more-than-double net profit of Rs 643 million in June 2018 quarter (Q1FY19). The company, which is engaged in commodity chemicals business, had profit of Rs 311 million in the same quarter last fiscal. READ MORE

3:03 PM IST RCom gets SC nod to sell assets to Jio, agrees to pay Rs 5.5 bn to Ericsson Reliance Communications Ltd (RCom) said on Monday it had received approval from the Supreme Court to proceed with the sale of its wireless assets to Reliance Jio after it agreed to pay 5.5 billion rupees ($80.06 million) to settle dues with Swedish telecom gearmaker Ericsson. READ MORE

2:47 PM IST Gold extends rally from 17-month low, stronger dollar caps gains Gold prices inched higher on Monday, extending their recovery from a 17-month low, amid lingering worries over the US-China trade conflict, while a stronger US dollar capped the safe haven's gains.   Spot gold was up 0.2 per cent at $1,215.71 an ounce, building on its 0.5 per cent gain on Friday. US gold futures were little changed at $1,223.7 an ounce. READ MORE

2:31 PM IST Vedanta's quarterly core earnings rise; India copper output drops Miner Vedanta Resources Plc, which is set to be taken private by Chairman Anil Agarwal, reported on Monday a 26.3 percent rise in first-quarter core earnings on higher commodity prices.   The London-listed company's earnings before interest, taxes, depreciation and amortization (EBITDA) rose to $983 million, for the three months ended June 30, from $778 million a year earlier. READ MORE

2:13 PM IST Multiplex companies look attractive post correction; PVR, Inox Leisure gain Multiplex operators PVR and Inox Leisure were among the top gainers in the BSE 500 index on Friday, appreciating 7-14.5 per cent. The gains came after PVR entered into a three-year deal with ticketing aggregators bookmyshow and PayTM for a convenience fee of Rs4.1 billion, most of which it will receive upfront as advance payment in FY19. READ MORE

2:02 PM IST Market Check INDEX LATEST PREVIOUS CHANGE CHANGE(%) BSE SENSEX 37729.37 37556.16 173.21 0.46 BSE 500 15425.22 15361.14 64.08 0.42 BSE MID-CAP 16283.63 16206.89 76.74 0.47 BSE SMALL-CAP 16929.66 16833.52 96.14 0.57 S&P BSE LARGECAP 4424.31 4407.00 17.31 0.39 > More on BSE Indices

1:45 PM IST ICRA gains 6% as board mulls share buyback proposal Shares of ICRA have gained 6% to Rs 3,657 per share on the BSE in intra-day trade after the company- an Indian subsidiary of ratings agency Moody's, said it will consider share buyback proposal on Thursday, August 9, 2018. READ MORE

1:34 PM IST Top gainers in BSE 500: COMPANY PRICE() CHG() CHG(%) TRIDENT 70.85 6.75 10.53 ENDURANCE TECH. 1574.00 120.50 8.29 I D F C 50.90 3.85 8.18 TIME TECHNOPLAST 151.45 11.25 8.02 DHANUKA AGRITECH 600.00 41.65 7.46 » More on Top Gainers

1:15 PM IST Pledged holdings for the BSE500 stocks decline in June 2018 quarter Pledged holdings for the BSE500 stocks declined in the June 2018 quarter as against the preceding quarter. The percentage of pledged promoter holdings reduced to 6.8 per cent, from 7.4 per cent in the March quarter, according to Kotak Institutional Equities.   The value of pledged holdings stood at Rs1.82 trillion, 1.37 per cent of market capitalisation of the BSE500 stocks. The brokerage attributed the fall in pledged holdings to changes in the constituents of the BSE-500 index. READ MORE

LIVE UPDATES

Nifty sectoral gainers and losers of the day


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


Market at close

The S&P BSE Sensex settled at a record high of 37,692, up 136 points, while the broader Nifty 50 index settled at a new high of 11,387, up 26 points.
Vinati Organics hits upper circuit of 20% as Q1 profit doubles

Shares of Vinati Organics are locked in upper circuit of 20% at Rs 1,188 per share, also their new high on the BSE, after the company reported a more-than-double net profit of Rs 643 million in June 2018 quarter (Q1FY19). The company, which is engaged in commodity chemicals business, had profit of Rs 311 million in the same quarter last fiscal. READ MORE

RCom gets SC nod to sell assets to Jio, agrees to pay Rs 5.5 bn to Ericsson

Reliance Communications Ltd (RCom) said on Monday it had received approval from the Supreme Court to proceed with the sale of its wireless assets to Reliance Jio after it agreed to pay 5.5 billion rupees ($80.06 million) to settle dues with Swedish telecom gearmaker Ericsson. READ MORE


Gold extends rally from 17-month low, stronger dollar caps gains

Gold prices inched higher on Monday, extending their recovery from a 17-month low, amid lingering worries over the US-China trade conflict, while a stronger US dollar capped the safe haven's gains.
 
Spot gold was up 0.2 per cent at $1,215.71 an ounce, building on its 0.5 per cent gain on Friday. US gold futures were little changed at $1,223.7 an ounce. READ MORE

Vedanta's quarterly core earnings rise; India copper output drops

Miner Vedanta Resources Plc, which is set to be taken private by Chairman Anil Agarwal, reported on Monday a 26.3 percent rise in first-quarter core earnings on higher commodity prices.
 
The London-listed company's earnings before interest, taxes, depreciation and amortization (EBITDA) rose to $983 million, for the three months ended June 30, from $778 million a year earlier. READ MORE

Multiplex companies look attractive post correction; PVR, Inox Leisure gain

Multiplex operators PVR and Inox Leisure were among the top gainers in the BSE 500 index on Friday, appreciating 7-14.5 per cent. The gains came after PVR entered into a three-year deal with ticketing aggregators bookmyshow and PayTM for a convenience fee of Rs4.1 billion, most of which it will receive upfront as advance payment in FY19. READ MORE

Market Check

INDEX LATEST PREVIOUS CHANGE CHANGE(%)
BSE SENSEX 37729.37 37556.16 173.21 0.46
BSE 500 15425.22 15361.14 64.08 0.42
BSE MID-CAP 16283.63 16206.89 76.74 0.47
BSE SMALL-CAP 16929.66 16833.52 96.14 0.57
S&P BSE LARGECAP 4424.31 4407.00 17.31 0.39
> More on BSE Indices
ICRA gains 6% as board mulls share buyback proposal

Shares of ICRA have gained 6% to Rs 3,657 per share on the BSE in intra-day trade after the company- an Indian subsidiary of ratings agency Moody's, said it will consider share buyback proposal on Thursday, August 9, 2018. READ MORE

Top gainers in BSE 500:

COMPANY PRICE() CHG() CHG(%)
TRIDENT 70.85 6.75 10.53
ENDURANCE TECH. 1574.00 120.50 8.29
I D F C 50.90 3.85 8.18
TIME TECHNOPLAST 151.45 11.25 8.02
DHANUKA AGRITECH 600.00 41.65 7.46
» More on Top Gainers
Pledged holdings for the BSE500 stocks decline in June 2018 quarter

Pledged holdings for the BSE500 stocks declined in the June 2018 quarter as against the preceding quarter. The percentage of pledged promoter holdings reduced to 6.8 per cent, from 7.4 per cent in the March quarter, according to Kotak Institutional Equities.
 
The value of pledged holdings stood at Rs1.82 trillion, 1.37 per cent of market capitalisation of the BSE500 stocks. The brokerage attributed the fall in pledged holdings to changes in the constituents of the BSE-500 index. READ MORE

Defensives are on the radar

The Reserve Bank of India's (RBI’s) Monetary Policy Committee has hiked the policy rate for the second time in a row. It has also hinted that it will not be averse to hiking again, if inflation doesn't ease off. Pressure on the rupee might now lessen due to a couple of factors. READ MORE
Indian markets can rise another 10%; focus on mid, small-caps: Mark Mobius

Indian benchmarks have rallied to record highs and have been among the top performers globally thus far in the calendar year 2018 (CY18). MARK MOBIUS, co-founder, Mobius Capital Partners tells Puneet Wadhwa that going ahead, investors should concentrate more on ‘value’ rather than momentum; and on the good small-and medium-sized companies rather than the large-caps. READ MORE
Mark Mobius

Here are the reasons why FMCG valuations will remain high in coming days

A strong performance is always rewarded whether it’s a field of sport, movie or even the equity market. And, it is exactly what most fast moving consumer goods (FMCG) companies are likely to experience. READ MORE

Graphite India hits new high ahead of Q1 results

Shares of Graphite India hit a new high of Rs 1,080 per share, rising 2.4% on the BSE in intra-day trade, ahead of April-June 2018 (Q1FY19) results today. READ MORE

Markets at noon
INDEX LATEST PREVIOUS CHANGE CHANGE(%)
BSE SENSEX 37746.45 37556.16 190.29 0.51
BSE 500 15425.84 15361.14 64.70 0.42
BSE MID-CAP 16262.73 16206.89 55.84 0.34
BSE SMALL-CAP 16930.49 16833.52 96.97 0.58
S&P BSE LARGECAP 4425.44 4407.00 18.44 0.42
> More on BSE Indices
Laurus Labs hits record low on disappointing Q1 results
 
Laurus Labs hit a record low of Rs 430, down 8% on the BSE in early morning trade, after the pharmaceutical company’s consolidated net profit declined 57% year on year (yoy) at Rs 166 million in June quarter (Q1FY19). The main reason for the lower profitability is the increase in prices for the materials imported from China apart from lower sales of CMO APIs.
 
The company had profit of Rs 389 million in the same quarter last fiscal. READ MORE
Shift your investments if Sebi pulls up AMC for regularly flouting norms
 
Market regulator Securities and Exchange Board of India (Sebi) wrote a letter to the Association of Mutual Funds in India (Amfi) on July 9 warning its members regarding 25 violations it had observed during inspections of fund houses carried out between April 2014 and March 2016.
 
In its July 25 meeting with independent trustees of mutual funds, the regulator brought up the issue of these violations again and asked trustees to ensure high standards of corporate governance. READ MORE
Sebi in final stages of allowing futures trading in petrol and diesel
 
Over 60,000 retail petrol pump and hundreds and thousands of small and big transporters, bulk users and diesel-consuming industries will soon be able to hedge the price risk in petrol and diesel, as Sebi is in final stages of allowing futures in these two commodities.
 
ICEX, the third largest Commodity Exchange, has urged the regulator to allow futures trading in petrol and diesel. Unlike crude oil, the prices of these two products derived from the fossil fuel are fixed in India once a day by oil marketing companies, based on market forces. Hence hedging is more real than the proxy. So far, crude oil has been a proxy hedging product for petrol and diesel and not an accurate risk management tool. READ MORE
From Hindustan Unilever to RIL, top corporates gear up to split CMD post
 
Large corporates like HUL and RIL have started making arrangements to comply with regulator Sebi's directive to split the roles of chairman and managing director by April 1, 2020, but several smaller companies are still giving their CMDs tenures beyond the deadline.
 
As the season of AGMs continues, many companies have sought shareholders' approval for extending tenure of their CMDs, which in several cases will fall foul of Sebi's guidelines for the top 500 listed companies in the country to have a non-executive chairman and a separate person as CEO or Managing Director from April, 2020. READ MORE
SBI hits 6-month high; stock up 19% in one month
 
Shares of State Bank of India (SBI) hit a six-month high of Rs 307, up 3% on the BSE on Monday, extending its Friday’s 1.6% gain after the public sector lender and Reliance Jio tied up to provide a platform offering digital banking, commerce, and financial services to customers.
 
“Post operationalization of Jio Payments Bank (a 70:30 JV between RIL and SBI) Jio and SBI are deepening their partnership to bring next-generation bilateral frictionless experience with exclusive digital Banking, Payments and Commerce journeys for their customers,” Reliance Jio said in media release. READ MORE
BS Special Risks to macroeconomic stability from trade war
 
Though the RBI maintained its growth projection for FY19 at 7.4%, it has alluded to risks on account of protectionist measures and further escalation in trade tensions in its policy statement. There are two dimensions to the risks to macroeconomic stability from trade tensions. One dimension, of course, is that if the global economy slows down, it could result in contraction in global trade and hit our export volumes. The second dimension is that of the policy response of central banks globally to counter the effect of trade war i.e. the risk of trade war eventually turning into a currency war. READ MORE HERE
Market Debut HDFC AMC makes stellar debut, soars 67% against issue price
 
Shares of HDFC Assets Management Company (AMC) made a stellar debut on the bourses on Monday, by listing at Rs 1,739, a 58% against its issue price of Rs 1,100 per share on the BSE.
 
The stock hit an intra-day high of Rs 1,832, zoomed 66.5% against issue price after few minutes of its debut on the BSE. READ MORE
Market Check

Index Current Pt. Change % Change
 
S&P BSE SENSEX 37,722.40 +166.24 +0.44
 
S&P BSE SENSEX 50 11,936.27 +52.38 +0.44
 
S&P BSE SENSEX Next 50 33,977.35 +152.12 +0.45
 
S&P BSE 100 11,685.06 +51.23 +0.44
 
S&P BSE Bharat 22 Index 3,612.95 +26.25 +0.73

Nifty valuation at multi-year highs on most counts: All you need to know
 
Following the sharp 6 per cent rally over the past month, the valuation of the benchmark Nifty 50 index looks filled to the brim on many counts. On parameters such as forward price-to-earnings (P/E), earnings growth expectations and cyclically adjusted P/E ratio (Cape), the markets are most expensive in 10 years.
 
Meanwhile, valuations are the highest since 2010 when it comes to indicators such as market cap-to-GDP, bond–earnings yield spread and price-to-book value (P/B) valuations, according to an analysis by ICICI Securities. READ MORE
Interview of the day FY19 earnings should expand in mid-teens, says Old Bridge's Kenneth Andrade
 
Kenneth Andrade, founder and chief investment officer, Old Bridge Capital Management, discusses the road ahead for equity markets, earnings and his sector preferences in the backdrop of rising interest rates and escalating global trade wars. Read full interview here

Kenneth Andrade, Founder and Chief Investment Officer, Old Bridge Capital Management


 
 
Nifty sectoral trend


BSE Sensex gainers in the opening trade


Market at open
 
At 9:15 AM, the S&P BSE Sensex was trading at a record high of 37,755, up 199 points while the broader Nifty50 breached the 11,400 mark and was ruling at 11,413, up 52 points.
Markets at pre-open

Index Current Pt. Change % Change
 
S&P BSE SENSEX 37,670.72 +114.56 +0.31
 
S&P BSE SENSEX 50 11,919.30 +35.41 +0.30
 
S&P BSE SENSEX Next 50 33,932.15 +106.92 +0.32
 
S&P BSE 100 11,668.81 +34.98 +0.30
 
S&P BSE Bharat 22 Index 3,586.90 +0.20 +0.01

Technical calls by Angel Broking
ARVIND
View – Bullish
Last Close – Rs 419.70
 
Justification – During the penultimate week, the stock prices finally came out of its congestion zone which in technical terms can be interpreted as a breakout from the ‘Triangle’ pattern. This was accompanied by higher than average daily volumes, providing credence to the breakout. However, due to lack of follow up buying, the stock corrected a bit towards the trend line support of 412. As expected, the strong buying emerged at lower levels, which validates this corrective move as a pullback move and the stock would now possibly start the fresh leg of the rally. Hence, we recommend buying for an upside target of Rs 469 and stop loss at Rs 401.70.
 
Outlook on Nifty by Angel Broking
 
The merry days continues for our market after undergoing some stressful period of nearly five months. Unlike the previous week, the intra-week action was not as smooth as it was; but as we generally say all is well that ends well. The index managed to reclaim the 11350 mark with an authority; bringing the smile back on a lot of retail investors.
 
With a technical point of view, the rally began after breaking out from a ‘Bullish Diamond’ pattern on the weekly chart during the mid-July. Since then a series of bullish price developments have been observed. Some would say markets are overbought but we do not want to be in this bandwagon as of now. READ MORE
Top trading ideas by Prabhudas Lilladher:
 
BUY CUMMINS INDIA
CMP: Rs 703.30
TARGET: Rs 770
STOP LOSS: Rs 660
 
The stock has witnessed a huge correction in the past 7 months from the peak of 984 to bottom out recently at 615 levels and has given a decent bounce back currently to move above the significant 50 DMA and given a breakout above the previous resistance of 685 levels thus signifying strength and potential to rise further in the coming days. With increasing volume participation witnessed the bias has improved a lot and hence we recommend a buy in this stock for an upside target of 770 keeping a stop loss of 660.
 
Nifty outlook by Prabhudas Lilladher
 
Market though is overbought, yet Nifty is holding the support of 11,220 showing signs of a new round of momentum. Bank Nifty, too, has taken the support of 27,350 levels & back in momentum with Axis, ICICI, Kotak Bank, Yes Bank, etc, looks promising from here on. The support for the week is seen that 36,940/11,160 while resistance is seen at 37,980/11,500. Bank Nifty would have a range of 27,050-28,140. Focus on banking stocks.
HDFC AMC to debut on bourses today
 
HDFC Asset Management Company is set to debut on the bourses on August 6, after receiving a great response to the issue from institutional investors. The joint venture fund house raised Rs 2,800.33 crore through public issue and issued 2,54,57,555 equity shares at Rs 1,100 per share. Housing Development Finance Corporation and Standard Life Investments lower their shareholding via this IPO.
 
The public issue was subscribed 83.06 times receiving bids for 156.19 crore equity shares against IPO size of 1.88 crore shares (excluding anchor portion). The reserved portion of qualified institutional investors oversubscribed by 192.26 times, non-institutional investors 195.15 times and retail 6.73 times during July 25-27.
FPIs' net inflow at Rs 2,300-cr in July
 
Foreign investors poured in over Rs 2,300 crore in the Indian capital markets in July, after pulling out funds for three months in a row, largely due to expectations of a lower trade deficit following a correction in crude oil prices.
 
The latest inflow comes after such investors had taken out more than Rs 61,000 crore from the capital markets (equity and debt) during April-June. Prior to that, FPIs had invested Rs 2,662 crore in March.
MARKETS ON FRIDAY

INDEX LATEST PREVIOUS CHANGE CHANGE(%)
BSE SENSEX 37556.16 37165.16 391.00 1.05
BSE 500 15361.14 15219.82 141.32 0.93
BSE MID-CAP 16206.89 16057.60 149.29 0.93
BSE SMALL-CAP 16833.52 16639.81 193.71 1.16
S&P BSE LARGECAP 4407.00 4367.22 39.78 0.91
> More on BSE Indices
SGX Nifty
 
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 39 points or 0.34 per cent. Nifty futures were trading around 10,436-level on the Singaporean Exchange.
Asian markets trade higher
 
Asian shares advanced early on Monday, led by Wall Street's gains. The Nikkei 225 edged up by 0.14 per cent while the Kospi added 0.44 per cent, with automakers, steelmakers and retailers contributing to overall gains.
Wall Street gains as upbeat earnings trump trade jitters
 
US stocks advanced on Friday as upbeat earnings helped investors shrug off heightened trade anxieties and weaker-than-expected July jobs growth. The Dow Jones Industrial Average rose 136.42 points, or 0.54 per cent, to 25,462.58, the S&P 500 gained 13.13 points, or 0.46 per cent, to 2,840.35 and the Nasdaq Composite added 9.33 points, or 0.12 per cent, to 7,812.02.
Good Morning!

Welcome to markets live blog. Catch all live market action here

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel