MARKET WRAP: Sensex ends at fresh closing high of 38,024; Bankex up 1.3%

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The benchmark indices settled at fresh closing high on Thursday, led by a rise in the shares of financial and realty stocks. The S&P BSE Sensex settled at a record high of 38,024, up 137 points, while the broader Nifty 50 index closed at a new high of 11,471, up 21 points. In intra-day deals, the S&P BSE Sensex hit a fresh all-time high of 38,076.23. The Nifty50 index, on the other hand, touched its record high level of 11,495.20.

In stocks, ICICI Bank settled 4.64 per cent higher at Rs 332.95 while Axis Bank rose 3.86 per cent at Rs 619.45 on the BSE.

Among sectoral indices, the Nifty PSU Bank index gained around 3 per cent led by rise in Union Bank of India and Bank of India. The Nifty Realty index too, moved up 2 per cent led by DLF and Unitech.

Banks rally

Shares of public sector undertaking (PSU) bank were in focus with the Nifty PSU Bank index gaining around 3% on the National Stock Exchange (NSE) in an otherwise range-bound market on Thursday.

 
Union Bank of India, Allahabad Bank and Oriental Bank of Commerce were up 5% each, while Andhra Bank, Bank of India, Canara Bank, Bank of Baroda, Syndicate Bank, Punjab National Bank (PNB) and State Bank of India (SBI) were up in the range of 3% to 4% on the NSE.

Global Markets

Asian share markets found support on Thursday as a rally in Chinese stocks helped offset the latest escalation in the Sino-US trade war, while Russia's rouble tumbled as the United States slapped fresh sanctions on the country.

Shanghai blue chips climbed 2.7 per cent amid talk of possible government support for home-grown technology companies, just the latest in a series of growth boosting measures rolled out by Beijing as the trade dispute worsens.

The gains in Chinese stocks helped MSCI's broadest index of Asia-Pacific shares outside Japan reverse early losses to nudge up 0.5 per cent. Japan's Nikkei slipped 0.2 per cent, weighed in part by a shock slump in core machinery orders.

(with wire inputs)

3:47 PM IST The Nifty PSU Bank index ends 2.98% higher. Top gainers: COMPANY LATEST PREV CLOSE GAIN() GAIN(%) UNION BANK (I) 89.15 85.05 4.10 4.82 BANK OF INDIA 98.00 94.00 4.00 4.26 BANK OF BARODA 154.75 148.60 6.15 4.14 ALLAHABAD BANK 45.80 44.00 1.80 4.09 ORIENTAL BANK 81.05 78.15 2.90 3.71

3:43 PM IST Nifty sectoral gainers of the day

3:39 PM IST BSE Sensex: ICICI Bank, Axis Bank, SBI among top gainers

3:35 PM IST Market at close The S&P BSE Sensex settled at a record high of 38,024, up 137 points, while the broader Nifty 50 index closed at a new high of 11,471, up 21 points. In intra-day deals, the S&P BSE Sensex hit a fresh all-time high of 38,076.23. The Nifty50 index, on the other hand, touched its record high level of 11,495.20.

3:18 PM IST HPCL gains after strong Q1 earnings Hindustan Petroleum Corporation rose 0.73% to Rs 284.45 at 10:45 IST on BSE after the company reported 85.91% rise in net profit to Rs 1719.21 crore on 26.12% increase in net sales to Rs 67331.52 crore in Q1 June 2018 over Q1 June 2017. READ MORE

3:02 PM IST Page Industries, Graphite India hit record highs on strong Q1 results Shares of Page Industries and Graphite India have hit their respective record highs on the BSE, gaining 6% in intra-day trade on Thursday after reporting a strong set of numbers for the quarter ended June 2018 (Q1FY19). READ MORE

2:44 PM IST Best is yet to come for NSE: Former prime minister Manmohan Singh Former prime minister Manmohan Singh on Wednesday said the best is yet to come for the National Stock Exchange (NSE), a bourse which he inaugurated as a finance minister 25 years ago. READ MORE

2:29 PM IST Gold remains weak on muted demand, global cues Gold prices dipped by Rs 5 to Rs 30,560 per 10 grams at the bullion market today due to tepid demand from local jewellers and a weak trend overseas. However, silver recovered by Rs 55 to Rs 38,970 per kg on scattered enquiries from industrial units and coin makers. Marketmen said subdued demand from local jewellers and retailers at the domestic spot market amid weak global cues kept gold prices lower. READ MORE Gold

2:15 PM IST Market Check INDEX LATEST PREVIOUS CHANGE CHANGE(%) BSE SENSEX 38045.41 37887.56 157.85 0.42 BSE 500 15505.29 15450.35 54.94 0.36 BSE MID-CAP 16340.79 16245.33 95.46 0.59 BSE SMALL-CAP 16912.36 16868.20 44.16 0.26 S&P BSE LARGECAP 4452.88 4437.99 14.89 0.34 > More on BSE Indices

2:00 PM IST Bandhan Bank hits new high; stock soars nearly 100% against issue price Shares of Bandhan Bank have surged 7% to Rs 742 per share, their highest level since listing on March 27, 2018 on the National Stock Exchange (NSE), on back of heavy volumes. The market price of the private sector bank jumped nearly 100% against its issue price of Rs 375. READ MORE

1:46 PM IST 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

1:29 PM IST Top gainers in BSE 500: COMPANY PRICE() CHG() CHG(%) HIND.CONSTRUCT. 12.78 1.29 11.23 REL. COMM. 19.84 1.48 8.06 VENKY'S (INDIA) 3229.90 216.45 7.18 NATL. ALUMINIUM 71.85 4.45 6.60 SOBHA 527.95 32.40 6.54 » More on Top Gainers

LIVE UPDATES

The Nifty PSU Bank index ends 2.98% higher. Top gainers:

COMPANY LATEST PREV CLOSE GAIN() GAIN(%)
UNION BANK (I) 89.15 85.05 4.10 4.82
BANK OF INDIA 98.00 94.00 4.00 4.26
BANK OF BARODA 154.75 148.60 6.15 4.14
ALLAHABAD BANK 45.80 44.00 1.80 4.09
ORIENTAL BANK 81.05 78.15 2.90 3.71

Nifty sectoral gainers of the day


BSE Sensex: ICICI Bank, Axis Bank, SBI among top gainers


Market at close

The S&P BSE Sensex settled at a record high of 38,024, up 137 points, while the broader Nifty 50 index closed at a new high of 11,471, up 21 points. In intra-day deals, the S&P BSE Sensex hit a fresh all-time high of 38,076.23. The Nifty50 index, on the other hand, touched its record high level of 11,495.20.
HPCL gains after strong Q1 earnings

Hindustan Petroleum Corporation rose 0.73% to Rs 284.45 at 10:45 IST on BSE after the company reported 85.91% rise in net profit to Rs 1719.21 crore on 26.12% increase in net sales to Rs 67331.52 crore in Q1 June 2018 over Q1 June 2017. READ MORE

Page Industries, Graphite India hit record highs on strong Q1 results

Shares of Page Industries and Graphite India have hit their respective record highs on the BSE, gaining 6% in intra-day trade on Thursday after reporting a strong set of numbers for the quarter ended June 2018 (Q1FY19). READ MORE

Best is yet to come for NSE: Former prime minister Manmohan Singh

Former prime minister Manmohan Singh on Wednesday said the best is yet to come for the National Stock Exchange (NSE), a bourse which he inaugurated as a finance minister 25 years ago. READ MORE

Gold remains weak on muted demand, global cues

Gold prices dipped by Rs 5 to Rs 30,560 per 10 grams at the bullion market today due to tepid demand from local jewellers and a weak trend overseas. However, silver recovered by Rs 55 to Rs 38,970 per kg on scattered enquiries from industrial units and coin makers. Marketmen said subdued demand from local jewellers and retailers at the domestic spot market amid weak global cues kept gold prices lower. READ MORE
Gold

Market Check

INDEX LATEST PREVIOUS CHANGE CHANGE(%)
BSE SENSEX 38045.41 37887.56 157.85 0.42
BSE 500 15505.29 15450.35 54.94 0.36
BSE MID-CAP 16340.79 16245.33 95.46 0.59
BSE SMALL-CAP 16912.36 16868.20 44.16 0.26
S&P BSE LARGECAP 4452.88 4437.99 14.89 0.34
> More on BSE Indices
Bandhan Bank hits new high; stock soars nearly 100% against issue price

Shares of Bandhan Bank have surged 7% to Rs 742 per share, their highest level since listing on March 27, 2018 on the National Stock Exchange (NSE), on back of heavy volumes. The market price of the private sector bank jumped nearly 100% against its issue price of Rs 375. 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

Top gainers in BSE 500:

COMPANY PRICE() CHG() CHG(%)
HIND.CONSTRUCT. 12.78 1.29 11.23
REL. COMM. 19.84 1.48 8.06
VENKY'S (INDIA) 3229.90 216.45 7.18
NATL. ALUMINIUM 71.85 4.45 6.60
SOBHA 527.95 32.40 6.54
» More on Top Gainers
Shortage of long product steel hurting EPC companies as cost goes up

With large integrated producers focusing on high margin flat steel production, the domestic steel industry is facing a shortage of long products that is hurting the margins of contracting companies. READ MORE

Extended trading hours from October 1, says NSE CEO Vikram Limaye

On the occasion of the National Stock Exchange’s (NSE’s) silver jubilee celebration, its MD and CEO Vikram Limaye spoke to Somesh Jha to discuss the way forward and how the exchange plans to deal with the present set of issues. READ MORE HERE
Vikram Limaye. Photo: Business Standard

L&T Infotech premium valuations to sustain, strong show leads to rerating

Given the industry-leading growth, robust deal pipeline and favourable tailwinds, analysts are now valuing the company at about 22 times (price to earnings or P/E ratio) from the previous 18-20 times one-year forward multiple. The L&T Infotech stock has been rerated after the company reported strong June quarter results. READ MORE

Selan Exploration extends rally on stake hike by Dolly Khanna

Selan Exploration Technology has rallied 11% to Rs 278, also its 52-week high on the National Stock Exchange (NSE) in intra-day trade after the investor Dolly Khanna bought an additional nearly one percentage point stake in the company through the open market. READ MORE

Nifty PSU Bank index up 3%; SBI hits fresh 6-month high ahead of Q1 results

Shares of public sector undertaking (PSU) bank were in focus with the Nifty PSU Bank index gaining more than 3% on the National Stock Exchange (NSE) in an otherwise range-bound market on Thursday. READ MORE

Markets at noon

Index Current Pt. Change % Change
 
S&P BSE SENSEX 38,018.02 +130.46 +0.34
 
S&P BSE SENSEX 50 12,010.78 +34.96 +0.29
 
S&P BSE SENSEX Next 50 33,997.45 +86.30 +0.25
 
S&P BSE 100 11,748.24 +33.47 +0.29
 
S&P BSE Bharat 22 Index 3,644.20 +39.56 +1.10

BS Fund Cafe Regulation, distribution to drive growth, says MF houses CEOs
 
The importance of regulation in driving the now-soaring growth of mutual funds (MF), and in deciding how the sector’s potential plays out, came into focus during a panel discussion of top executives at the Business Standard Fund Café 2018, on Wednesday.
 
Nimesh Shah, managing director and chief executive officer (MD & CEO) of ICICI Prudential Asset Management Company, said regulatory effort had resulted in a highly transparent product. READ MORE
ICICI Bank hits 6-month high, stock soars 6%
 
Shares of ICICI Bank hit a six-month high of Rs 337, up 6% on the BSE after the private sector lender on Wednesday, said it has made full disclosures about its bad loans and non-performing assets (NPAs) in its annual report, investor presentations and analysts’ calls.
 
The stock was trading at its highest level since February 8, 2018. It touched the 52-week high of Rs 365 on January 29, 2018, in intra-day trade. READ MORE
Microfinance institutions plan to take IPO route to fund growth plans
 
After nearly a decade, microfinance institutions (MFIs) are again looking at raising funds through initial public offerings (IPOs) of equity.
 
The IPO of CreditAccess Grameen, a Bengaluru-based MFI, hit the markets on Wednesday. Those of at least two others, Muthoot Microfin and Spandana Sphoorty, are in the pipeline. Another entity, Arohan, is in the process of deciding whether or not to raise money through an IPO. READ MORE
Top Nifty50 Gainers

COMPANY LATEST PREV CLOSE GAIN() GAIN(%) VOLUME
ICICI BANK 338.15 318.70 19.45 6.10 25902572
ST BK OF INDIA 317.50 308.70 8.80 2.85 17821845
AXIS BANK 609.30 596.30 13.00 2.18 5433797
HINDALCO INDS. 224.35 220.60 3.75 1.70 6417721
INFOSYS 1384.00 1362.75 21.25 1.56 1226665

Cipla nears its 52-week high post Q1 results
 
Shares of Cipla have rallied 4.6% to Rs 662 per share on the BSE in early morning trade after the pharmaceutical company reported a 10% increase in its consolidated net profit of Rs 4.51 billion for the first quarter ended June 30 (Q1FY19), driven by healthy growth in domestic market. It had profit of Rs 4.09 billion in the same quarter year ago.
 
The stock was trading close to its 52-week high of Rs 663 touched on November 11, 2017 on the BSE in intra-day trade. It hit an all-time high of Rs 752 on March 10, 2015. 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 most expensive globally and there is scope for bringing down the cost of investing, said U K Sinha, former chairman of the Securities and Exchange Board of India (Sebi).
 
While delivering his speech as the chief guest at Business Standard Fund Café 2018, Sinha said due to high costs, we are seeing assets moving away from actively managed funds to exchange-traded funds (ETFs). READ MORE
Nirmal Bang on Cipla

The recent limited-competition approvals (generic Voltaren gel, Dacogen generic, Isuprel generic, Testosterone Cypionate generic) are yet to ramp up. We expect cumulative incremental contribution from these new launches at US$60mn, which should translate to an incremental EPS contribution of Rs 3.5 per share. US revenues, which stood at US$100mn during the quarter, should ramp up to a run-rate of US$120mn per quarter by 4QFY19.

We expect normalised EPS of Rs22.6 for FY19. India business is also expected to grow in the range of 12% to 14% in FY19.  We have maintained our target price on Cipla at Rs647 which is based on 22x FY20E EPS, but revise our rating to Accumulate (from Buy earlier) as the recent run-up in stock price lowers the return potential
Weak US sales take toll on Lupin Q1 performance, stock slides 4.5%
 
Lupin’s June quarter (Q1) performance was significantly below expectations, and again stumped the Street. Lupin’s stock, which had outperformed the Sensex since July, thus fell 4.5 per cent on Wednesday.
 
With no immediate triggers, analysts say it may languish for some time. The Street was expecting strong growth in domestic sales to lift the company’s Q1 performance, amidst expectations of a marginal decline in US revenues. READ MORE
Market Check

INDEX LATEST PREVIOUS CHANGE CHANGE(%)
BSE SENSEX 38022.47 37887.56 134.91 0.36
BSE 500 15509.68 15450.35 59.33 0.38
BSE MID-CAP 16325.18 16245.33 79.85 0.49
BSE SMALL-CAP 16963.33 16868.20 95.13 0.56
S&P BSE LARGECAP 4452.51 4437.99 14.52 0.33
> More on BSE Indices
CreditAccess Grameen IPO worth Rs 3.4 billion subscribed 25% on Day 1
 
Bengaluru-based company CreditAccess Grameen’s initial public offering (IPO) garnered 25 per cent subscription on Wednesday, the first day of the issue. A day earlier, the microfinance lender had allotted eight million shares worth Rs 3.4 billion to 21 anchor investors, at Rs 422 apiece.
 
Shares were allotted at the top-end of the IPO price band of Rs 422 per share.
 
Neuberger Berman, Eastspring Investments, Pictet, ICICI Prudential Mutual Fund, Sundaram Mutual Fund and Citibank were among the investors that were made allotment under the anchor category. READ MORE
BS Fund Cafe How to navigate markets in election year
 
Navigating the markets in an election year, challenges around generating alpha, and sectors that look most favourable were key talking points during a panel discussion involving the country’s top money managers. Most chief investment officers (CIOs) were unanimous in their view that the impact of elections on markets is short-lived and in the long run, earnings determine the market’s direction. READ MORE

(From left) Birla Sun Life MF co-CIO Mahesh Patil, HDFC MF CIO Prashant Jain, SBI MF ED & CIO Navneet Munot, UTI MF group president & head (equity) Vetri Subramaniam, Reliance MF CIO (equities) Manish Gunwani, and ICICI Prudential ED & CIO S Naren,

Nifty sectoral trend


BSE Sensex heatmap


Market at open
 
The benchmark indices opened at record highs with the S&P BSE Sensex crossing the 38,000 mark. At 9:15 AM, the S&P BSE Sensex was trading at 38,022, up 134 points while the broader Nifty50 was ruling at 10,485, up 35 points.
Emkay Global on Berger Paints

Berger Paints’ (Berger) performance was marginally ahead of expectations, with consolidated sales and PAT growth of 19% and 20%, respectively. Sales growth was driven by ~15% volume growth in domestic decorative paints. We maintain our HOLD stance and roll forward our Target Price (TP) to Rs315 (previously Rs300), valuing Berger at 40x Sep’20E EPS.
Markets at pre-open

Index Current Pt. Change % Change
 
S&P BSE SENSEX 37,997.53 +109.97 +0.29
 
S&P BSE SENSEX 50 12,015.99 +40.17 +0.34
 
S&P BSE SENSEX Next 50 33,968.29 +57.14 +0.17
 
S&P BSE 100 11,751.35 +36.58 +0.31
 
S&P BSE Bharat 22 Index 3,623.23 +18.59 +0.52


IDBI Capital on HPCL

HPCL’s Q1FY19 result came ahead of our expectation led by strong inventory gains of Rs19.1 bn, partially offset by forex loss of Rs5.4 bn. Adjusting to these, result is largely in-line with expectation. Revenue was up 26.5% YoY to Rs676bn while EBITDA was up 96% YoY to Rs31.9bn and PAT was up 85.9% YoY to Rs17.1bn.

Weak refining profits was more than offset by relatively stronger marketing profits which increased 28% YoY to Rs16.4 bn (adjusting to inventory gain). We are revising our estimates upwards by ~10% for both FY19/FY20E to factor in higher marketing profits. Though, we are cutting our TP to Rs336 from Rs351 on lower multiple owing to uncertainty on marketing margin till general election. Maintain BUY
MARKET COMMENT Amar Ambani, head of research, IIFL

A slow start awaits markets a day after equity benchmarks scaled to record closing highs. Steady buying continued in most sectors but overall market may remain in consolidation mode. Bank Nifty too gained interest and closed at new highs. Majority of the sectors ended in the green. US stocks closed lower. Asian markets are trading mixed. Oil prices have cooled and Russian rouble has tumbled.

China announced it would impose additional import tariffs of 25 pc on USD16 billion worth of US goods. The IMF said that India contributes 15 pc of the growth in the global economy, in terms of purchasing power parity measures. It also views India as a long-run source of global growth. A host of companies will announce results including Aurobindo Pharma, Bajaj Electricals, Bharat Forge, Eicher Motors, HCG, ICRA, Jet Airways, PNB Housing Finance and Tata Communications
Top trading ideas by Prabhudas Lilladher for the day

BUY PHIL CARBON
CMP: Rs 274
TARGET: Rs 320
STOP LOSS: Rs 235
 
The stock has given a good rally recently and moved past the 200 DMA and 34 WMA moving average to maintain a positive bias and has further potential to rise further in the coming days. The indicators are all favorable for further upward movement and with the RSI on the rise and with good consistent volume participation witnessed, we recommend a buy in this stock for an upside target of 320 keeping a stop loss of 235.
 
BUY ONGC
CMP: Rs 172.50
TARGET: Rs 190
STOP LOSS: Rs 162
 
The stock has given a consolidation phase at around 155 levels for quite some time forming a good strong base and has made a decent revival to reach 168 levels where it consolidated again and currently has given a positive bullish candle pattern to signify further strength and has got potential to rise further in the coming days to scale till 185 – 190 levels. The volume participation has been decent and we recommend a buy in this stock for an upside target of 190 keeping a stop loss of 162. READ MORE
 
Nifty outlook by Prabhudas Lilladher:
 
Nifty and Bank Nifty have made new highs; however, the RSI on the daily chart is in the process of forming a negative divergence which would lead to exhaustion at these levels. One definitely needs to hedge or be prompt to exit on stop losses. The support for the day is seen at 37,660/11,380 while resistance is seen at 38,060/11,500. Bank Nifty would have a range of 27,820-28,280.
Govt gets fiscal deficit cushion, RBI to pay Rs 500-bn dividend for FY18
 
The Reserve Bank of India (RBI) will pay Rs 500 billion dividend to the government for its financial year ended June 2018, giving it a cushion to manage the fiscal deficit. However, it is not clear if this includes the interim dividend of Rs 100 billion the central bank paid the government in March 2018.
 
“The central board of directoRs of the RBI, at its meeting on August 8, approved the transfer of the surplus, amounting to Rs 500 billion for the year ended June 30, 2018, to the Government of India,” the central bank said in a statement. The RBI’s financial year extends from July to June. READ MORE
Oil drops on China import data
 
Oil prices slumped on Wednesday after Chinese import data showed a slowdown in demand and weighed on world equity markets, which traded near break-even as US technology shares extended recent gains. US crude fell $2.23 to settle at $66.94 per barrel and Brent settled at $72.28, down $2.37 on the day.
SGX Nifty
 
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 4.5 points or 0.04 percent. Nifty futures were trading around 10,473-level on the Singaporean Exchange.
China to slap additional tariffs on $16 bn worth of US goods
 
China is slapping additional import tariffs of 25 per cent on $16 billion worth of US goods ranging from oil and steel products to autos and medical equipment, the commerce ministry said, as the world's two largest economies escalate their trade dispute.
 
"This is a very unreasonable practice," the commerce ministry said on its website www.mofcom.gov.cn, responding to the United States' decision to slap 25 per cent tariffs on another $16 billion of Chinese goods on August 23.
US-China trade tensions keep Asian markets mixed
 
Asia traded mixed on Thursday morning after the US market was mostly little changed overnight following new Chinese tariffs on American goods. The ASX 200 was up 0.15 per cent in early trade. Japan's Nikkei 225 dropped 0.54 per cent and the Topix index was down 0.55 per cent.
S&P 500, Dow edge down as oil prices, trade worries weigh
 
The S&P 500 closed slightly lower on Wednesday as falling crude prices and trade jitters held markets in check. The Nasdaq posted its seventh consecutive daily advance, while the Dow was down marginally. The S&P 500’s dip occurred as the index has inched closer in recent days to its record high set on January 26.
 
The Dow Jones Industrial Average fell 45.16 points, or 0.18 per cent, to 25,583.75, the S&P 500 lost 0.75 point, or 0.03 per cent, to 2,857.7 and the Nasdaq Composite added 4.66 points, or 0.06 per cent, to 7,888.33.
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