Indices shrug-off trade war fears; Sensex ends 83 pts up at 35,658 levels

Photo: Shutterstock
The benchmark indices pared most of their day's gains to end marginally higher on Friday tracking recovery in the global markets.

The S&P BSE Sensex ended at 35,658, up 83 points while the broader Nifty50 index settled at 10,773, up 23 points.

Among sectoral indices, the Nifty Auto index settled over 1% led by rise in the stocks of Ashok Leyland, Hero MotoCorp and Tata Motors.

GLOBAL MARKETS

The imposition of tariffs by the United States and China on billions of dollars of trade was absorbed calmly by markets on Friday with stocks edging higher and the euro climbing a three-week peak, but concerns about the conflict escalating capped gains.

Chinese shares led a recovery by Asian market, partly helped by the perception that the tariff measures were already priced in though worries about what lay ahead for global markets boosted appetite for perceived safe-haven assets such as government debt and the Japanese yen.

The US tariffs on more than 800 goods from China worth $34 billion took effect at 0401 GMT. President Donald Trump has warned the United States may ultimately target over $500 billion worth of Chinese goods, an amount that roughly matches its total imports from China last year.

World stocks rose 0.2 per cent to their highest level in a week while Asian stocks climbed nearly half a percent led by a rebound in Chinese shares.

MSCI’s main European Index edged 0.1 per cent higher and held below a two-week high hit in the previous session amid hopes of a rapprochement between the US and Europe on auto trade tariffs.

RUPEE

The rupee recovered 21 paise from intra-day low of 69.03 to trade at 68.82 against the US dollar in late morning deals.

 
As the US is set to impose tariffs on Chinese goods today and sustained foreign capital outflows pressured the sentiment, the rupee fell sharply to 69.03 a dollar before quoting 68.82.

(with wire inputs)

3:40 PM IST Nifty Auto index ended 1.3% higher today. Top gainers: COMPANY LATEST PREV CLOSE GAIN() GAIN(%) ASHOK LEYLAND 132.30 125.00 7.30 5.84 HERO MOTOCORP 3637.10 3505.75 131.35 3.75 APOLLO TYRES 261.50 252.05 9.45 3.75 TATA MOTORS 270.85 261.55 9.30 3.56 BHARAT FORGE 632.35 615.20 17.15 2.79 Click here for more

3:37 PM IST Nifty sectoral performers

3:35 PM IST BSE Sensex: Hero MotoCorp, Tata Motors, Bajaj Auto among top gainers

3:32 PM IST Market at close   The S&P BSE Sensex ended at 35,658, up 83 points while the broader Nifty50 index settled at 10,773, up 23 points.

3:16 PM IST Gold trims losses on soft dollar after US tariffs take effect Gold prices narrowed losses on Friday as US tariffs on Chinese imports weighed on the greenback, stoking fears of a full-blown trade war between the two leading economies. Spot gold was 0.1 per cent lower at $1,256.54 an ounce, having dropped to $1,252.15 earlier in the session. READ MORE

2:59 PM IST Thyssenkrupp shares rise by 3.9% after CEO offers resignation Shares in Thyssenkrupp rose on Friday after Chief Executive Heinrich Hiesinger unexpectedly offered to step down, less than a week after sealing a landmark joint venture deal with India's Tata Steel. READ MORE

2:45 PM IST Asian Paints, Hindustan Unilever, TCS hit new highs Shares of paint company Asian Paints, fast moving consumer goods (FMCG) firm Hindustan Unilever (HUL) and information technology giant Tata Consultancy Services (TCS) from the Sensex have hit their respective new highs on the BSE on Friday.   Thus far in the current calendar year 2018, these three stocks have outperformed the market by gaining in the range of 15% to 39%, as compared to 4.5% rise in the S&P BSE Sensex. READ MORE

2:30 PM IST Auto shares riding high on healthy demand outlook Shares of automobiles companies were in focus with Nifty Auto and the S&P BSE Auto index gaining nearly 2% on expectations of healthy demand during the current financial year 2018-19 (FY19). READ MORE

2:15 PM IST Rupee may stay near record low over trade war risk, rising oil costs: Poll Global trade tensions and rising oil prices are expected to weaken India's rupee over the next year, a Reuters poll has found, dragging the currency closer to the record low hit last week against the dollar. While economic growth has picked up and India has retained its spot as the fastest growing major economy this year, the rupee hit an all-time low of 69.09 per dollar last week and is the worst-performing currency in Asia this year. READ MORE

2:00 PM IST Market Check S&P BSE Sensex 35,712.09 0.39%   Nifty 50 10,796.60 0.44%   S&P BSE 200 4,639.07 0.47%   Nifty 500 9,216.10 0.54%   S&P BSE Mid-Cap 15,445.91 0.92%   S&P BSE Small-Cap 16,077.69 0.57%

1:48 PM IST Fed impressed with US economy strength, may continue with rate hike US central bankers discussed whether recession lurked around the corner and expressed concerns global trade tensions could hit an economy that by most measures looked strong, minutes of the Federal Reserve's last policy meeting on June 12-13 released on Thursday showed. READ MORE  

1:32 PM IST Samsung Q2 profit likely to grow at 5.2%; revenue may come down by 4.9% South Korean tech giant Samsung Electronics Co Ltd estimated on Friday earnings would grow at the slowest pace in more than a year in the second quarter, as analysts said weak smartphone sales likely offset record high chip earnings. READ MORE

LIVE UPDATES

Nifty Auto index ended 1.3% higher today. Top gainers:

COMPANY LATEST PREV CLOSE GAIN() GAIN(%)
ASHOK LEYLAND 132.30 125.00 7.30 5.84
HERO MOTOCORP 3637.10 3505.75 131.35 3.75
APOLLO TYRES 261.50 252.05 9.45 3.75
TATA MOTORS 270.85 261.55 9.30 3.56
BHARAT FORGE 632.35 615.20 17.15 2.79

Click here for more
Nifty sectoral performers


BSE Sensex: Hero MotoCorp, Tata Motors, Bajaj Auto among top gainers


Market at close
 
The S&P BSE Sensex ended at 35,658, up 83 points while the broader Nifty50 index settled at 10,773, up 23 points.
Gold trims losses on soft dollar after US tariffs take effect

Gold prices narrowed losses on Friday as US tariffs on Chinese imports weighed on the greenback, stoking fears of a full-blown trade war between the two leading economies.

Spot gold was 0.1 per cent lower at $1,256.54 an ounce, having dropped to $1,252.15 earlier in the session. READ MORE

Thyssenkrupp shares rise by 3.9% after CEO offers resignation

Shares in Thyssenkrupp rose on Friday after Chief Executive Heinrich Hiesinger unexpectedly offered to step down, less than a week after sealing a landmark joint venture deal with India's Tata Steel. READ MORE

Asian Paints, Hindustan Unilever, TCS hit new highs

Shares of paint company Asian Paints, fast moving consumer goods (FMCG) firm Hindustan Unilever (HUL) and information technology giant Tata Consultancy Services (TCS) from the Sensex have hit their respective new highs on the BSE on Friday.
 
Thus far in the current calendar year 2018, these three stocks have outperformed the market by gaining in the range of 15% to 39%, as compared to 4.5% rise in the S&P BSE Sensex. READ MORE

Auto shares riding high on healthy demand outlook

Shares of automobiles companies were in focus with Nifty Auto and the S&P BSE Auto index gaining nearly 2% on expectations of healthy demand during the current financial year 2018-19 (FY19). READ MORE

Rupee may stay near record low over trade war risk, rising oil costs: Poll

Global trade tensions and rising oil prices are expected to weaken India's rupee over the next year, a Reuters poll has found, dragging the currency closer to the record low hit last week against the dollar.

While economic growth has picked up and India has retained its spot as the fastest growing major economy this year, the rupee hit an all-time low of 69.09 per dollar last week and is the worst-performing currency in Asia this year. READ MORE

Market Check

S&P BSE Sensex 35,712.09 0.39%
 
Nifty 50 10,796.60 0.44%
 
S&P BSE 200 4,639.07 0.47%
 
Nifty 500 9,216.10 0.54%
 
S&P BSE Mid-Cap 15,445.91 0.92%
 
S&P BSE Small-Cap 16,077.69 0.57%

Fed impressed with US economy strength, may continue with rate hike

US central bankers discussed whether recession lurked around the corner and expressed concerns global trade tensions could hit an economy that by most measures looked strong, minutes of the Federal Reserve's last policy meeting on June 12-13 released on Thursday showed. READ MORE
 

Samsung Q2 profit likely to grow at 5.2%; revenue may come down by 4.9%

South Korean tech giant Samsung Electronics Co Ltd estimated on Friday earnings would grow at the slowest pace in more than a year in the second quarter, as analysts said weak smartphone sales likely offset record high chip earnings. READ MORE

Steel prices to remain stable; NMDC cuts ore prices for Karnataka
 
Indian primary steel producers have extended their product prices for July, despite state-owned NMDC cutting iron ore prices by Rs 300 a tonne in Karnataka (where a lot of the country’s steel is made).
 
NMDC Limited, a state-controlled mineral producer, has reduced prices by Rs 300 a tonne in Karnataka on the backdrop of increasing stocks. READ MORE
Carriage, content, commerce in quiver, Mukesh Ambani ready for triple play
 
Mukesh Ambani is ready with his triple play of carriage, content and commerce.
 
The richest Indian has already signed up 215 million customers in 22 months for his 4G mobile network. By upending the telecom industry’s profitability with free voice calls and cheap data, he’s forced many of his smaller rivals, including his younger brother Anil Ambani, into backing off. That puts another 80 million or so subscribers up for grabs.
 
But it’s Ambani’s entry into fiber-optic broadband, announced at flagship Reliance Industries Ltd’s annual shareholder meeting on Thursday, that will complete his carriage plans. READ MORE

Mukesh Ambani,RIL AGM

Brexit likely to impact Tata Motors-owned JLR's future investment in UK
 
Worries around the impact of Britain’s exit from the European Union and its impact on Tata Motors-owned Jaguar Land Rover Automotive, further deepened on Thursday after Ralph Speth, the company’s chief executive warned that a “hard Brexit” would cost it £1.2 billion a year, curtailing its future operations in the United Kingdom as upcoming investments get jeopardised. Speth’s statement comes a day ahead of British Premier Theresa May meeting with the cabinet to discuss Britain’s exit strategy from the European Union. READ MORE
Was the EPFO ahead of the curve in its preference for passive funds?

The Employees’ Provident Fund Organisation’s (EPFO’s) dependence on low-cost passive funds is starting to look smarter with each passing day, as active fund managers struggle to meet benchmark returns. An analysis of the data from Value Research, a fund tracker, shows a majority of active funds have failed to beat their benchmarks in both the large-cap and mid-cap space. READ MORE

Tougher entry into India for investors from 25 nations in 'high risk' list
 
Participation in Indian markets will get more difficult for foreign institutions based out of Mauritius – India’s second largest source of Foreign Portfolio Investor (FPI) flows. According to sources, the global custodians have recognised 25 countries including Mauritius, Cyprus and United Arab Emirates (UAE) as ‘high-risk jurisdictions’. Going forward, off-shore funds investing through these countries will have to comply with additional Know Your Customer (KYC) norms. READ MORE
Market at Noon

 
S&P BSE Sensex 35,701.39 0.36%
 
Nifty 50 10,797.15 0.44%
 
S&P BSE 200 4,635.71 0.40%
 
Nifty 500 9,211.15 0.49%
 
S&P BSE Mid-Cap 15,394.95 0.58%
 
S&P BSE Small-Cap 16,055.70 0.43%

Hathway Cable, Den Networks hit 52-week low as RIL launches JioGigaFibre
 
Shares of Den Networks and Hathway Cable & Datacom fell more than 5% for the second straight session after the Reliance Industries’s (RIL) chairman Mukesh Ambani on Thursday announced the launch of Jio’s fibre to home or fixed line broadband services called Jio GigaFiber.
 
Hathway Cable & Datacom dipped 10% to Rs 18.55, extending its previous day’s 15% fall on the BSE. Meanwhile, Den Networks has slipped 7% to Rs 62.20, after falling 11% yesterday. Both these stocks are trading at their respective 52-week lows on the BSE. READ MORE
Auto stocks gain post July sales numbers

COMPANY LATEST PREV CLOSE GAIN() GAIN(%) VOLUME
ASHOK LEYLAND 132.30 125.00 7.30 5.84 18260971
MOTHERSON SUMI 304.80 293.90 10.90 3.71 1482731
TATA MOTORS 270.90 261.55 9.35 3.57 9465622
TATA MOTORS-DVR 157.85 153.25 4.60 3.00 1592747
BAJAJ AUTO 3052.95 2966.95 86.00 2.90 782499

Click here for more
Sobha gains 6% post June quarter operational update
 
Shares of real estate firm Sobha rallied 6% to Rs 507 on the BSE in early morning trade after the company said sales bookings for the first quarter of FY19 increased by 22% to Rs 7.62 billion as compared to corresponding quarter last year on higher volumes.
 
“The sales volume and total sales value are up by 18% and 22% respectively as compared to corresponding quarter of last year. The markets of Bengaluru, Gurugram and Kochi continue to perform well and are ably supported by the Coimbatore and Mysore,” Sobha said in a press release. READ MORE
Graphite electrode makers' prospects look bright
 
Shares of graphite electrode producers HEG and Graphite India hit new highs on Thursday on firm outlook for that business. The uptrend in demand and realisation for graphite electrodes, which has helped these stocks gain substantially in the past year, is likely to sustain. This is keeping the Street bullish on both. READ MORE
Titan misses the growth bus in Q1; analysts remain bullish on prospects
 
The Titan Company's stock shed about 5.6 per cent in trade on Thursday, after the company indicated jewellery segment sales in the June quarter (after several quarters of strong growth) would be weak and below the company’s own targets. The management said the sector had gone through a soft patch during the first five months of this calendar year, as seen in a 39 per cent decline of gold import by volume. READ MORE
WEB EXCLUSIVE Chris Wood's ex-Japan portfolio dips 1.6% in Q1FY19, drops Vedanta
 
In his latest weekly note to investors GREED & fear, Christopher Wood, managing director, equity strategist at CLSA says that his ex-Japan long-only portfolio declined 1.6 per cent in the last quarter (first quarter of financial year 2018-19 i.e. Q1FY19) in US dollar terms. Yet, it was able to outperform the regional index – MSCI AC ex-Japan – that declined 5.6 per cent last quarter on a total-return basis.
 
“The portfolio also outperformed in the first half of 2018, declining by 2.4 per cent compared with the benchmark’s 4.7 per cent decline. This follows the portfolio’s 61.7 per cent rise last year on a total-return basis, which was the best annual performance since 2009,” Wood says. READ MORE

Christopher Wood, Managing Director & Equity Strategist, CLSAChristopher Wood, Managing Director & Equity Strategist, CLSA

Market debut Varroc Engineering lists at 6.7% premium wrt issue price

Auto component maker Varroc Engineering made a decent debut on Friday, listing at Rs 1,032 on BSE, a 6.72% premium over its issue price of Rs 967. On NSE, the scrip got listed at Rs 1,015, up 4.96%.
 
At 10:11 am, the stock was trading at Rs 1,010, 4.5% up as comapred to issue price but 2% lower than its open price on BSE. On comparison, the S&P BSE Sensex was trading 0.3% higher. READ MORE

Rupee crosses 69-mark against US dollar in early trade, sheds 8 paise

The rupee fell 8 paise to trade at 69.03 against the US dollar in early trade today on appreciation of the American currency overseas and sustained foreign capital outflows. READ MORE

Market Check

 
S&P BSE Sensex 35,652.75 0.22%
 
Nifty 50 10,776.45 0.25%
 
S&P BSE 200 4,629.19 0.26%
 
Nifty 500 9,189.60 0.25%
 
S&P BSE Mid-Cap 15,370.49 0.42%
 
S&P BSE Small-Cap 16,016.98 0.19%

Swadhaar buyout to support RBL Bank's retail plans, regulatory needs
 
After a strong performance in 2017-18, investors have given a thumbs-up to RBL Bank’s move to hike stake to 100 per cent from the current 60.5 per cent in Swadhaar Finserve, which offers services in underbanked areas.
 
Since the announcement on June 28, RBL’s stock has gained about five per cent, outperforming the 0.4 per cent rise in the Nifty Bank index. READ MORE
F&O Strategies
 
ITC JULY FUTURES: Buy around 271-272 for a potential upside target of 284 with a stop below 264 (spot levels)
 
VEDL JULY FUTURES: Sell around 219.50-220 for a potential downside target of 205 with a stop loss placed above 230 (spot levels)
 
SHORT STRANGLE IN RELIANCE : Sell one lot of RELIANCE JUL 1020 CE @ 9-10 & Sell one lot of RELIANCE JUL 920 PE @ 7-8 | Max Profit: 16000 | Cumm Inflow: 16 | Stop Loss: 24 | Target: 2-3 (Premium)

(Source: Karvy)
Nifty sectoral trend


BSE Sensex gainers and losers


Market at open
 
At 9:15 AM, the S&P BSE Sensex was trading at 35,563, down 12 points while the broader Nifty50 was ruling at 10,743, down 7 points.
Markets at pre-open

Index Current Pt. Change % Change
 
S&P BSE SENSEX 35,554.63 -19.92 -0.06
 
S&P BSE SENSEX 50 11,261.27 -2.42 -0.02
 
S&P BSE SENSEX Next 50 31,781.42 -41.13 -0.13
 
S&P BSE 100 11,010.44 -4.12 -0.04
 
S&P BSE Bharat 22 Index 3,297.70 +4.74 +0.14

(Source: BSE)
Derivatives strategy on UltraTech Cement by HDFC Securities
 
Buy Ultra Tech Cement July Future at Rs 3,924
 
Stop loss: Rs 3,840
 
Target: Rs 4,050
 
Rationale: We have seen Long positions being built in Ultra tech futures’ yesterday where We have seen sharp Rise in Open Interest with Price rise of 3%
Commodity outlook by Tradebulls
 
Buy Natural Gas
TARGET: Rs 204
Stop Loss: Rs 191
 
Natural Gas trading range for past one and half month is 194-207. Currently it is trading at the lower end of the range. We have seen prices reversing from this level. Currently it is taking support at its 50 day moving average. Positive divergence is being seen in RSI_14 on daily chart. We recommend creating long position with expectation of 204 on the upside and stop loss to be maintained below 191 on closing basis. Click here for more
Trading ideas by Anand Rathi Research
 
BUY ACC
Target: Rs 1,484
Stop Loss: Rs 1,360
 
ACC has provided a breakout from a symmetrical triangular pattern on the daily charts which is formed in its wave B. Now, with this breakout the stock is likely to retrace 38.2% of its previous fall, so the target comes to 1485 levels.

Click here for more
Nifty outlook by Anand Rathi Research
 
NIFTY SELL
TARGET: 10,680
STOP LOSS: 10,810
 
Nifty has closed in the negative territory in the last trading session facing resistance at 10,800 levels. The rise so far on the daily charts appear to be a three wave rising structure, hence till 10810 levels aren’t taken off the overall bias hereon remains sideways to negative. On the lower side, the immediate support exists at 10,650 levels, hence 10,680 is the immediate target.
Trading Ideas by Prabhudal Lilladher:
 
BUY ITC
CMP: Rs 272.50
TARGET: Rs 290
STOP LOSS: Rs 258
 
The stock has witnessed a correction from the peak of 288 to indicate signs of bottoming out at around levels and has showed a positive candle pattern in the daily chart to signify strength and potential to rise further in the coming days. The chart looks attractive and with the RSI also indicating a trend reversal has signaled a buy and has maintained a positive bias in the stock. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 290 keeping a stop loss of 258. Click here for more 
Nifty outlook by Prabhudas Lilladher:
 
Nifty has resisted around the 10,780 levels and once again was not able to breach the upper band of around 10,820 levels. The momentum witnessed a day before fizzled out and the bias and sentiment turned once again cautious. However, the support for the day is seen at 10,680 while resistance is seen at 10,810. Auto sector continue to show momentum while Cement stocks also has indicated a positive revival.
Markets on Thursday

S&P BSE Sensex 35,574.55 -0.20%
 
Nifty 50 10,749.75 -0.19%
 
S&P BSE 200 4,617.21 -0.25%
 
Nifty 500 9,166.60 -0.30%
 
S&P BSE Mid-Cap 15,305.74 -0.71%
 
S&P BSE Small-Cap 15,986.49 -0.40%

SGX Nifty
 
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 26.5 points or 0.25 per cent. Nifty futures were trading around 10,731-level on the Singaporean Exchange.
Asian stocks on edge hours before tariff deadline
 
Asian share markets were set for a bumpy ride on Friday just hours ahead of a US deadline to impose tariffs on Chinese imports, which has rattled financial markets in recent weeks as investors feared it could trigger a full-blown global trade war.
 
MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.05 per cent, with some support from early gains in Korean and Australian shares. Japan's Nikkei stock index was 1.1 pe rcent higher after closing at a three-month low on Thursday, while Australian shares gained 0.2 per cent. Seoul's Kospi index edged up 0.2 per cent.
Wall Street rises on US-EU trade relations optimism
 
Wall Street’s major indexes rose on Thursday as reports that the United States and the European Union may agree to withdraw auto tariffs fostered optimism on international trade relations among investors.
 
The Dow Jones Industrial Average rose 181.92 points, or 0.75 per cent, to 24,356.74, the S&P 500 gained 23.39 points, or 0.86 per cent, to 2,736.61 and the Nasdaq Composite added 83.75 points, or 1.12 per cent, to 7,586.43.
Good Morning!

Welcome to market's 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