HDFC twins, banks lift Sensex 86 pts, Nifty over 11,850 in volatile session

Benchmark indices ended Friday's volatile session with marginal gains, lifted by HDFC twins and bank stocks amid weakness in pharma counters.

The S&P BSE Sensex rose 86 points, or 0.2 per cent, to 39,616, with IndusInd Bank, Bajaj Finance, Mahindra & Mahindra, State Bank of India, and ICICI Bank being the top gainers. Only 12 of the 30 BSE constituents ended the day in the green.

The broader Nifty50 index added 27 points, or 0.23 per cent, to 11,871. About 1058 shares advanced, 1390 shares declined, and 146 shares remained unchanged on the NSE.

The Nifty sectoral indices traded mixed, with Nifty Fin Service index gaining the most 0.9 per cent, while the Nifty Pharma index slipped the most 1.2 per cent.

In the broader markets, the S&P BSE MidCap index dipped 25 points, or 0.17 per cent, to 14,906, while the S&P BSE SmallCap index was down 16 points , or 0.1 per cent, to 14,657.

BUZZING STOCKS

Shares of Eros International Media on Friday plunged 20 per cent to hit a new low of Rs 42.50 despite the company's clarification on credit rating downgrade by CARE Ratings, which had cut its long-term loan facilities ratings from 'BBB-' to 'D'. READ MORE

Shares of Indiabulls Real Estate (IBREL) rallied as much as 15 per cent to Rs 151 apiece on the BSE on Friday after the promoters sold 14 per cent of their holding in the company through open market. However, the stock ended the day 2.58 per cent lower to Rs 128.20. READ MORE

Shares of Manappuram Finance slipped 10 per cent in the intra-day trade to quote Rs 124 apeice on the BSE on Friday after markets regulator, Securities and Exchange Board of India (Sebi), issued notice to five Asset Management Companies (AMCs) alleging insider trading in favour of the company. The stock, however, pared some of its losses later in the day to settle at Rs 131.90, down 4.18 per cent. READ MORE


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3:33 PM IST The S&P BSE Sensex ended at 39,616, up 86 points while the broader Nifty50 index settled at 11,865, up 21 points.

3:23 PM IST

2:57 PM IST

2:44 PM IST COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%) APOLLO HOSPITALS 1396.40 1400.80 53.85 4.01 ASTRAL POLY 1334.75 1349.00 49.70 3.87 GUJ FLUOROCHEM 1139.95 1140.95 85.20 8.08 HAVELLS INDIA 790.00 791.75 8.75 1.12 » More on 52 Week High

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LIVE UPDATES

Heatmap: S&P BSE Sensex


Nifty sectoral indices at close


Market at close


Market at close

The S&P BSE Sensex ended at 39,616, up 86 points while the broader Nifty50 index settled at 11,865, up 21 points.

Infosys sees sudden dip


YES Bank slides over 3%


Stocks that hit 52-week high on S&P BSE Sensex

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
APOLLO HOSPITALS 1396.40 1400.80 53.85 4.01
ASTRAL POLY 1334.75 1349.00 49.70 3.87
GUJ FLUOROCHEM 1139.95 1140.95 85.20 8.08
HAVELLS INDIA 790.00 791.75 8.75 1.12
» More on 52 Week High

Buzzing | SBI zooms during last hour of trade


Sectoral trends on NSE


Top gainers and losers on S&P BSE Sensex


Market check


Market check | Sensex rises 100 pts


Reliance Infra tanks 25% in two days ahead of Q4 results; hits 15-yr low

Reliance Infrastructure shares on Friday slumped to a 15-year low of Rs 73, down 14 per cent in intra-day on BSE, and 25 per cent in the past two trading days ahead of March quarter earnings to be announced later in the day.
 
The stock hit a record low of Rs 35 on April 1990. The counter has seen huge trading volumes with a combined 24 million shares changed hands on the counter on the NSE and BSE till 01:19 pm. READ MORE

NEWS ALERT | On track to make payment for all dues: DHFL CEO


High debt to changing media market: How Eros International lost its way

The trigger was a ratings downgrade by CARE on Wednesday, citing a slowdown in collection from debtors, which was leading to cash flow issues.Stock price of one of the country’s best-known moviemakers Eros International Media (Eros) on Thursday crashed 20 per cent on the BSE over debt repayment concerns. READ MORE

Uncertainty around India's economic policy at 27-month high in May

Economic policy uncertainty was at its highest in over two years in the month of May. Election results were declared on May 23, granting a majority to the ruling Bharatiya Janata Party (BJP) for a second term.
 
Index levels more than doubled over March. It rose from around 40.6 to 83.6 in May, shows monthly data from Bloomberg. The index is a measure of economic policy uncertainty based on news coverage of policy issues. READ MORE

Reliance Infra hits 15-yr low, down over 11%


Reliance Capital is trading at its lowest level since 2004


Stocks that hit 52-week low on S&P BSE Sensex

COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%)
BAYER CROP SCI. 3620.05 3582.00 -5.45 -0.15
CADILA HEALTH. 243.30 241.00 -2.45 -1.00
CENTRAL BANK 24.70 24.50 -0.10 -0.40
COFFEE DAY ENTER 240.80 237.00 1.35 0.56
DEWAN HSG. FIN. 81.95 80.90 -11.95 -12.73
» More on 52 Week Low

Jet Airways skids 5.6%


Intra-day market view by HDFC Securities

Reliance Industries is dragging indices lower


Crude check | Brent crude futures approaching $63/barrel

Source: Oilprice.com

Dr Reddy's Labs slides 3%


RBI needs to give proper road-map to deal with NBFC crisis: Andrew Holland to BTVi

Anand Rathi Financial Services on Heidelberg Cement

Rating: Buy
 
Target Price: Rs 263
 
Share Price: Rs 210

The company repaid entire ECB of Rs 1,500m during FY19. Net D/E stood at 0.2x as on Mar’19 (vs 0.4x as on Mar’18) which we expect further to reduce with no major capacity expansion plan. However company guided to increase the capacity by acquisition. Backed by strong operating performance, we expect company’s return ratio to improve and FCF generation and further PAT to grow at CAGR of 20% over FY19-21.We maintain our Buy rating, at a target of `263 (at 10x FY21e
EV/EBITDA) Risks: Higher prices of pet-coke and diesel.

Lakshmi Vilas Bank hits 5% upper circuit in subdued market; here's why

Shares of Lakshmi Vilas Bank (LVB) were locked in the upper circuit of 5 per cent at Rs 73.80 per share on Friday in an otherwise subdued market after Indiabulls Group attributed the stake sale in its realty arm, Indiabulls Real Estate (IBREL), to fastrack the merger of the bank with Indiabulls Housing Finance.
 
In an interview with CNBC TV18, Ajit Mittal, group president, Indiabulls Group said that promoters of IBREL disposed off 14 per cent stake in the company via block deal to "fast-track the merger process", which is expected to be completed over the next nine to 12 months. READ MORE
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NEWS ALERT | Revenue Dept asks CBDT, CBIC to unearth shell companies: CNBC TV18

- Dept asks both tax department to identify transactions involving shell cos. 
 
- Spurious input tax credit, IGST claims by shell cos to be identified
 

Buzzing | HCC is trading nearly 5% higher


Infibeam Avenues climbs over 6%


MARKET CHECK


NEWS ALERT | IRDA makes presentation to FM for budget demands: sources to CNBC TV18

- Seeks Rs 4,000 crore of recapitalisation amount in FY20
 
- IRDA asks FM to reduce GST on life insurance products from 18% to 12%
 
Alert: IRDA stands for Insurance Regulatory and Development Authority of India 
 
        : IRDA seeks to recapitalise National, United India and Oriental insurance for Rs 15,000 cr
 

Rakesh Jhunjhunwala, LIC see 38% dent in portfolio value due to DHFL crisis

Savvy investors, at times, look up to their ‘investment gurus’ for taking a call on the broad market direction and even ape their stock calls. A decision, if proven correct over time, can see their stock and portfolio value surge manifold. But then, even market gurus, sometimes, falter. READ MORE

NEWS ALERT | Iron ore rich states to auction mining leases in July-Aug: CNBC TV18

-  Auction of leases expiring in 2020

- Mines ministry held meeting with Odisha, Karnataka, Chhattisgarh and Jharkhand

- Delay in auction could lead to 20-25% deficiency in Iron ore

Alert: 18 iron ores & 3-4 chrome ores mines in Odisha due to expire in 2020

Credit growth expected to stay slow despite RBI's interest rate cut: Fitch

The liquidity pressures faced by finance firms are in stark contrast to situation in Indian banking sector. The latter has not faced significant liquidity pressure or deposit withdrawals, despite asset-quality and capital weaknesses.
 
The credit growth in India is expected to remain slow, despite this week's interest-rate cut, as most banks are capital-constrained and NBFIs face tighter funding conditions, Fitch said in a statement. READ MORE

Govt's overconfidence: Why India is no longer fastest-growing big economy

When running for reelection, India’s Prime Minister Narendra Modi and his ministers stressed that, under his administration, India had become the world’s “fastest-growing large economy.” This was never much of an achievement; after all, the People’s Republic of China was in the midst of a significant slowdown even before the trade war. But even that no longer seems to be true.

According to data published recently by government statisticians, India grew at only 5.8% in the fourth quarter of its 2018-19 financial year, less than China’s 6.4% growth in that same period. (India’s financial year begins in April.) READ MORE


Indiabulls Real Estate gains on promoter stake sale to Embassy Group

Shares of Indiabulls Real Estate (IBREL) rallied as much as 15 per cent to Rs 151 apiece on the BSE on Friday after the promoters sold 14 per cent of their holding in the company through open market. At 09:15 am, around 61.33 million shares representing 13.6 per cent of total equity of Indiabulls Real Estate had changed hands on the BSE in single transaction, the exchange data shows. Till 10:20 am, a combined 90 million shares or 20 per cent of total equity of real estate Company changed hands on the NSE and BSE. READ MORE



Manappuram Finance slips 10% on Sebi notice in insider trading case

Business Standard reported on June 7 that SBI Fund Management, ING Mutual Fund (now Birla Sunlife) and BNP Paribas were among the five AMCs who were charged with the use of price-sensitive information for trading in the scrip of Manappuram Finance (MFL) in March 2013. READ MORE

Nifty Bank gains over 300 points from day's low


Bajaj Holdings & Investment is trading over 3% higher


Sectoral trends on NSE


Top gainers and losers on S&P BSE Sensex


Market check


Nifty indices turn green


Vedanta among top gainers on Sensex, gains over 2%


Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
INDBULL.REALEST. 136.85 5.25 3.99 69069108
DEWAN HSG. FIN. 89.50 -4.40 -4.69 2400981
RELIANCE POWER 6.43 -0.15 -2.28 1850469
YES BANK 144.55 1.20 0.84 881246
PC JEWELLER 66.20 -1.40 -2.07 760004
» More on Most Active Volume

Buzzing | Cox & Kings slips over 7%


Lakshmi Vilas Bank gains 5%

- Ajit Mittal told CNBC TV18 this morning that stake sale in Indiabulls Real Estate done to expedite merger of Indiabulls Housing Fin with LVB

Market check | Sensex sees recovery


NEWS ALERT | Merger of Lakshmi Vilas Bank and Indiabulls Housing Fin to be done in 9-12 months: Ajit Mittal

Alert: Ajit Mittal is group president for Indiabulls 

Sobha Ltd surges nearly 5%


Eros International plunges 20% despite clarification on credit rating cuts

Shares of Eros International Media on Friday plunged 20 per cent to hit a new low of Rs 42.50 despite the company's clarification on credit rating downgrade by CARE Ratings, which had cut its long-term loan facilities ratings from 'BBB-' to 'D'. The movies and entertainment company said the rating downgrade was on account of a delay in servicing of bank loans for the month of April and May and would be cleared within the next working days. READ MORE



Indiabulls Housing Fin gains over 2%


Nifty Realty Index trading higher after Ajit Mittal confirms stake sale deal in Indiabulls Real Est


Sun Pharma slips over 1%


Edelweiss Financials skids over 5%


Nifty PSU Bank index turns green


Cyient is trading flat after it announced strategic investment in rail Cyber security Company Cylus


NEWS ALERT | HDFC Bank appoints MSMK & Assoc as auditors: CNBC TV18

Alert: RBI previously had rejected appointment of SR Batliboi as auditor

IndusInd Bank is trading over 1% lower


Eros International continues slide, tumbles over 16%


Nifty Pharma index is trading nearly 2% lower


Hindustan Unilever slips over 1%


Broader markets take deeper cuts

- Nifty MidCap is trading nearly a per cent down while SmallCap is trading 0.69 per cent lower

Market check | Sensex slips nearly 200 pts in early trade


Manappuram Finance slips over 8%

- Business Standard reported today that Sebi has sent notice to Manappuram Fin for insider trading. READ FULL REPORT HERE

Indiabulls Real Estate gains as Co informs exchanges about the deal

- Co says promoters intend to sell 14% stake

- Multiple block deals happening



DHFL continues slide, down 4%


Indiabulls Real Estate is trading 4.5% higher


Sectoral trends on NSE


Top gainers and losers on S&P BSE Sensex


Market at open


Market at open


Eros Media plunges 20% after ratings downgrade


Indiabulls Real Estate is trading over 7% higher during pre-open


Rupee opening

Rupee opens higher at 69.19/$ vs Thursday's close of 69.26 against the US dollar

Market at pre-open


Market at pre-open


Bulk deal on NSE as on Thursday

FII/FPI & DII trading activity on NSE, BSE and MSEI


Essar Steel sets target of 7.43 mn tonnes crude steel production in FY20

For the first two months of the current financial year, the crude steel production of Essar Steel has grown 11 per cent to 1.25 million tonnes, compared to 1.1 million tonnes in the corresponding period last year.
 
The firm — currently undergoing insolvency - registered a revenue growth of 8.5 per cent at Rs 5,545 crore as against Rs 5,106 crore in the same period last year. In the same period, its Ebitda grew by 17 per cent to around Rs 770 crore from Rs 660 crore. READ MORE

Wipro founder Azim Premji's legacy a reflection of his business acumen

Three months ago, when a former financial manager of Wipro met founder-chairman Azim Premji in Bengaluru, the first commitment he had to give was to reduce his weight by at least 5 kg. “One of the first things he told me was — you will come and meet me when you reduce 5 kg,” said A K Sabat, partner at chartered accountancy firm AK Sabat & Co, who worked with Premji in the late 70s during the company’s infancy. READ MORE ON HIS LEGACY HERE

How to measure and interpret implied volatility (IV) for trading options

Volatility is crudely measures how much the stock price or index price is fluctuating. In the above chart, Blue line is more volatile than the black line. When it comes to volatility in equity markets, it is a measure of risk. But when it comes to options, volatility is positive for the value of options. Both the call option (right to buy) and the put option (right to sell) benefit from higher volatility. READ MORE

NEWS ALERT | Reliance Nippon makes open offer to acquire up to 13.82 cr shares

- Share price at Rs 230

- Open offer opens July 16, closes July 29

- Rel Nippon sends disclosure norm to exchanges

RBI votes for growth

The Reserve Bank of India’s (RBI’s) Monetary Policy Committee has done exactly what the doctor ordered: It reduced the benchmark repo rate by 25 basis points for the third successive time in line with majority market expectations. And unlike the last two policy decisions, this one was unanimous, with all six MPC members voting for a cut in rates. The benchmark rate at 5.75 per cent is now the lowest in the last nine years. Thursday’s reduction in the repo rate underscores the theme: Growth impulses have weakened significantly and a sharp slowdown in investment activity, along with a continuing moderation in private consumption growth, is a matter of concern. READ MORE

Stocks to watch: Indiabulls Real Estate, Wipro, DHFL, financials and Cyient

Here's a list of companies whose shares are expected to trade actively in Thursday's session -
 
Wipro: Azim Premji has stepped down as Wipro chairman, handing over charge to his elder son, Rishad, after leading the company for more than 50 years.
 
DHFL, Financials: The latest default on interest payments by Dewan Housing Finance Corporation (DHFL) can accentuate contagion risk in India's financial sector as banks, pension and mutual funds, and insurance companies together have an exposure of around Rs 1 trillion to the company, warn analysts. READ MORE

RBI keeps options open for more rate cuts with move to accommodative stance

The RBI’s decision to cut rates and move to accommodative mode was perhaps a manifestation of middle ground of delivering rate cut and keeping the ammunition ready for more. Global economic growth has lost pace after Q12019. Loss is growth is fairly widespread across both advanced and emerging economies. READ MORE
Soumya Kanti, Ghosh Group Chief Economic Advisor, State Bank of India

Why Modi govt should plan mega-bailout of distressed financial industry now

Ever since the collapse of infrastructure financier-operator IL&FS Group in September, an event I termed India’s mini-Lehman moment, the funding woes of the country’s nonbank lenders – those that operate without state-guaranteed deposits or access to central-bank liquidity – have kept worsening. READ MORE

SFIO probe report lists lapses in 13 loans given by IL&FS to ABG group

The Serious Fraud Investigation Office (SFIO) probe report on the IL&FS group has listed 13 loan accounts of the beleaguered ABG conglomerate, including a personal loan amounting to Rs 29 crore to Anupama Agarwal, promoter Rishi Agarwal's wife — all given at the behest of the top management of the infrastructure financier without following the due process. READ MORE

Rising heat, drought in Maharashtra and southern India may hit onion prices

High temperature in most areas and the fear of drought may hit onion prices. Maharashtra and south India, which produce 60 per cent of the bulb, are battling high temperatures and experiencing drought conditions like last year.
 
Onion prices are selling at Rs 12 per kg in Lasalgaon mandi in Maharashtra. A government official said rabi sowing in Maharashtra has fallen 15-20 per cent and prices are already at Rs 12 in Lasalgaon, which raises fears of mounting pressure on prices around August. READ MORE

Banks likely to cut lending, deposit rates by 20 bps in four months

SBI’s interest rate on savings deposits above Rs 1 lakh will stand reduced to 3 per cent from July. The country’s largest lender has linked its cash credit and overdraft rates and small savings deposits above Rs 1 lakh to the repo rate for better transmission of the policy rate. READ MORE

India will not push for GSP benefits from US, says Piyush Goyal

“It’s not something that any of the exporters raised as a matter of life and death. It has had an impact on some sectors, some places...1 per cent, 2 per cent...India is no more an underdeveloped or least developed country that we will look at that kind of support,” said Goyal. READ HIS VIEWS HERE

Diversification of iron ore distribution can end conflict: Rating agencies

To address the ongoing tug of war between domestic iron ore merchant miners and the steel industry, rating agencies see the diversification of resource distribution as the key solution. READ MORE

RBI ready to help troubled shadow banks, but stops short of specific steps

Speaking soon after announcing a cut in interest rates to the lowest in nine years, Reserve Bank of India Governor Shaktikanta Das told a press conference that the central bank is closely monitoring the NBFC sector and is ready to take “whatever steps are required” to ensure financial stability. READ MORE

Shift balance of debt funds in favour of higher credit-quality portfolios

In the second bi-monthly monetary policy for 2019-20, the Reserve Bank of India (RBI) cut the repo rate from 6 per cent to 5.75 per cent. This was its third consecutive rate cut. The central bank also changed its policy stance from neutral to accommodative. READ MORE

Azim Premji steps down as Wipro chairman, son Rishad to take over the reins

It’s the end of a long era at Wipro as Azim Premji, chairman of the software major, calls it a day, handing over charge to his elder son, Rishad, after leading the company for more than 50 years. The Bengaluru-headquartered company on Thursday announced Premji, 75, will step down as executive chairman on July 30. READ MORE

Revised Feb 12 circular will be issued in three-four days: Shaktikanta Das

Is the RBI considering any special measures, given that a housing finance company has defaulted?
 
We are monitoring major NBFCs and HFCs and the sector. So far as the RBI is concerned, we remain committed to ensure that we have a robust, well-functioning NBFC sector. The RBI will not hesitate to take steps required to ensure that financial stability is not adversely impacted in any manner by any development. I would not like to spell out the specific steps that the RBI will take because it will lead to unnecessary speculation. READ MORE

Investors lose Rs 2.22 trn as rate cut fails to ease NBFC sector concerns

Tracking weak sentiment in the broader market, the market capitalisation (m-cap) of BSE-listed companies tumbled Rs 2,22,304.65 crore to Rs 1,53,19,126.66 crore. READ MORE

Indices post biggest 1-day decline in 2019 despite RBI's dovish stance

The central bank cut rates for a third time this year, and kept the option open for further easing to boost growth.
 
The RBI’s dovish stance failed to cheer investors as the looming crisis in the non-banking financial companies (NBFC) sector overshadowed the move. READ MORE

Mutual fund industry in a tizzy over DHFL fallout, halts fresh inflows

Overall, more than 160 MF schemes are exposed to various debt papers of DHFL, with more than Rs 5,200 crore of investor money riding on these exposures. Fund managers say the fallout could also potentially spill over into schemes exposed to DHFL group firms, where over Rs 1,000 crore of investor money is exposed. As many as 21 schemes hold these debt papers. READ MORE

Fear of contagion looms over financial sector after DHFL's payment default

The latest default on interest payments by Dewan Housing Finance Corporation (DHFL) can accentuate contagion risk in India's financial sector as banks, pension and mutual funds, and insurance companies together have an exposure of around Rs 1 trillion to the company, warn analysts. It is crucial, they say, the company sell its assets in time and the government steps in to prevent the DHFL contagion from spreading to other financial firms. READ MORE

Sebi sends notice to 5 Asset Management Companies in insider trading case

SBI Fund Management, ING Mutual Fund (now Birla Sunlife) and BNP Paribas are among these. They are all charged with use of of price-sensitive information for trading in the scrip of Manappuram Finance (MFL) in March 2013. Notices have been also issued to Ambit Capital, its former chief executive officer, Saurabh Mukherjea, and to MFL and its top management. READ MORE

Taking a bet on debt funds: The risks you should know of as an investor

Debt funds were not perceived to be as risky as equity funds. But as recent episodes of sudden downgrades have shown, debt investments are risky, and it is possible for investors to lose their capital if companies default on their debt obligations. READ MORE

Stock calls by Anand Rathi: Buy Chambal Fert, HUL; sell Aurobindo Pharma

CHAMBAL FERTILIZERS: BUY
 
TARGET: Rs 215
 
STOP LOSS: Rs 167
 
The stock has provided a breakout from the downward sloping parallel channel and it has also provided a buy crossover on its daily, weekly and monthly momentum indicators are well into buy mode. With this breakout the stock seems to have started its wave 5 up. READ MORE
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Derivative strategy for Karnataka Bank by HDFC Securities

Buy Karnataka Bank June 105 Put @ Rs 3
 
Stop loss: Rs 1.50
 
Target: Rs 7

Rationale:
 
1) Short build up is seen in the Karnataka Bank Futures’ yesterday, where we have seen sharp rise in Open Interest with price falling by 5.70 per cent.

2) The stock has given bearish head and shoulder pattern breakdown on the daily chart by closing below the neckline support of Rs 109 levels with higher volumes.
 
3) Oscillators and Momentum indicators like relative strength index (RSI) and moving average convergence divergence (MACD) showing weakness in the stock on the weekly charts.
 
4) It is trading below its 5, 20 and 200 day simple moving average (SMA) Indicating stock is in downtrend for all the time frames.

Today's picks: From Titan to YES Bank, hot stocks to watch on Friday

Bank Nifty
 
Current: 30,857 (fut: 30,985),
 
Target: NA
 
Stop-long positions at 30,850. Stop short positions at 31,125. Big moves could go till 31,350, 30,650. Trend may stay negative for one more session. READ MORE

Rupee check

Source: Bloomberg


Oil check

At 7:55 am, Brent Crude Futures were trading at $62.31 per barrel

SGX Nifty

At 7:55 am, SGX Nifty was trading 20.5 points lower at 11,863.50 levels

Asian Markets check

Source: Reuters


US Market check

Source: reuters


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