MARKET WRAP: Sensex sheds 71 pts; Infy slips 4.4%, RIL falls 2.5% post AGM

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Benchmark indices ended slightly lower on Thursday with index heavyweights such as Infosys and Tata Steel losing ground, while a looming deadline for imposition of US tariffs on China also  played on investors’ minds.

The S&P BSE Sensex ended at 35,575, down 71 points. The broader Nifty50 index settled at 10,750, down 20 points. Among sectoral indices, the Nifty Metal index settled 1.4% lower led by a fall in shares of National Aluminium Company and Vedanta. The Nifty IT index, too, ended 1.1% lower led by a fall in the shares of Infosys (down 4.4 per cent) and KPIT Technologies.

On S&P BSE Sensex, market heavyweight Reliance Industries (RIL) slipped 2.5% to end at Rs 965. Infosys was the top loser of the day on the 30-share index, falling 4.5% to end at Rs 1284.50.

RIL's 41st AGM

Reliance Industries Limited announced on Thursday the launch of high-speed Jio GigaFiber broadband, which aims to boost fixed-line connectivity in India, and an upgraded version of its Jio Phone with popular social media apps such as Facebook.

At its 41st Annual General Meeting in Mumbai, RIL Chairman Mukesh Ambani announced the broadband for homes and enterprises across 1,100 cities and an e-commerce platform that may rival the likes of Amazon. He also spelt out the milestones achieved by Jio, which has disrupted the telecom industry and triggered a price war. READ MORE HERE

 
GLOBAL MARKETS

Asian stocks fell for the fourth day and major currencies traded in tight ranges on Thursday, with financial markets jittery before a US deadline to impose tariffs on Chinese imports just a day away.

MSCI's broadest index of Asia-Pacific shares outside Japan, which has been drifting lower since Monday, was down 0.5 per cent. The index has lost about 2 per cent this week, during which it plumbed a nine-month low.

Japan's Nikkei lost 1 per cent, South Korea's KOSPI slipped 0.75 per cent, Hong Kong's Hang Seng was off 0.9 per cent and the Shanghai Composite Index fell 0.9 per cent.

 
The United States plans to implement tariffs on $50 billion worth of imports from China as both nations remained locked in a bitter trade dispute that has convulsed global financial markets in recent weeks. On July 6, tariffs on $34 billion worth of imports will take effect, and Beijing has promised to retaliate in kind.

(with Reuters inputs)

4:11 PM IST MARKET COMMENT Jayant Manglik, President, Religare Broking Nifty traded range bound and settled almost unchanged in absence of any fresh trigger. Participants were in the profit taking mood at the start of trade. However, an up move in select index majors, mainly from FMCG and banking, capped downside as trade progressed.    Participants, mainly traders, are in the fix due to excessive volatility and selling pressure in broader market while Nifty has been showing resilience. Trade selection becomes difficult in such scenario. We feel the upcoming earnings season would ease the pressure and also provide the needed trigger for next directional move. Meanwhile, we advise keeping limited exposure mainly in index majors and quality midcap stocks

3:50 PM IST Nifty Metal index ended 1.42% lower. Top losers: COMPANY LATEST PREV CLOSE LOSS() LOSS(%) NATL. ALUMINIUM 59.75 62.10 -2.35 -3.78 TATA STEEL 553.30 571.10 -17.80 -3.12 VEDANTA 221.30 228.05 -6.75 -2.96 JINDAL STEEL 211.85 216.45 -4.60 -2.13 S A I L 78.60 80.30 -1.70 -2.12

3:37 PM IST Nifty sectoral performers of the day

3:34 PM IST BSE Sensex: Infosys, Tata Steel, RIL among top losers of the day, Yes Bank top gainer

3:32 PM IST Market at close   The S&P BSE Sensex ended at 35,575, down 71 points while the broader Nifty50 index settled at 10,750, down 20 points.

3:15 PM IST Analysts bet on rural economy theme; Nifty FMCG index hits new high Shares of fast moving consumer goods (FMCG) are trading higher for the second straight day on expectation of a rise in rural consumption, after the Union Cabinet approved a hike in minimum support prices (MSP) for Kharif crops by 1.5 times of the input cost for the 2018-19 season on Wednesday. READ MORE

3:02 PM IST Q1FY19 results preview by Kotak Securities We expect 1QFY19 net income of the KIE coverage universe to be flat yoy. We expect strong growth in the net income of (1) automobiles (strong volume growth on low base and operating leverage-led margin expansion), (2) consumers (continued volume-led sales growth and margin expansion due to operating leverage), (3) metals & mining (higher domestic realizations for ferrous although global prices of base metals were mixed) and (4) pharmaceuticals (led by domestic formulations and stabilization of US businesses) sectors. We model net loss for (1) banks under coverage (high loan-loss provisions as well as MTM losses on investment portfolio) and (2) telecom (ARPU dilution due to intense competition). We expect net income of the BSE-30 Index to increase 6% yoy and that of Nifty-50 Index to increase 12% yoy. We estimate ‘EPS’ of the BSE-30 Index at Rs1,755 for FY2019E and Rs2,180 for FY2020E. Our ‘EPS’ estimates for Nifty-50 Index for FY2019E and FY2020E are Rs545 and Rs670.

2:58 PM IST Lenders may invoke guarantees of Shriram Transport Finance on SVL Ltd Lenders of SVL Ltd, an unlisted holding company of the Shriram group, are planning to invoke the guarantees of Shriram Transport Finance Company (STFC) after a majority of the SVL's investments turned bad. SVL's subsidiaries like Shriram EPC, Orient Green Power and Haldia Coke are facing insolvency proceedings in the National Company Law Tribunal after a loan default. READ MORE

2:45 PM IST Gold firms up for 2nd session on sustained buying Strengthening gains for the second straight session, gold prices today edged up by Rs 10 to Rs 31,580 per 10 grams at the bullion market on persistent buying by local jewellers amid a firm trend overseas.   Silver prices too surged by Rs 690 to Rs 40,600 per kg backed by increased offtake by industrial units and coin makers. READ MORE

2:31 PM IST Glencore gives shares $1 billion buyback lift after US subpoena Commodities trader and miner Glencore will buy back shares worth $1 billion in a move analysts said looked timed to soothe investor nerves just two days after a subpoena from US authorities rattled the stock. READ MORE

2:16 PM IST MFs dangle ESOPs carrot to retain top talent ahead of stock market listings Asset management companies (AMCs) are dangling employee stock option plans (ESOP) in a bid to hold on to key talent as the industry gears up for the next phase of growth and large players look to list on the bourses. READ MORE

2:00 PM IST Market Check   S&P BSE Sensex 35,592.07 -0.15%   Nifty 50 10,762.35 -0.07%   S&P BSE 200 4,621.83 -0.15%   Nifty 500 9,180.25 -0.16%   S&P BSE Mid-Cap 15,355.74 -0.39%   S&P BSE Small-Cap 16,015.29 -0.22%

LIVE UPDATES

MARKET COMMENT Jayant Manglik, President, Religare Broking

Nifty traded range bound and settled almost unchanged in absence of any fresh trigger. Participants were in the profit taking mood at the start of trade. However, an up move in select index majors, mainly from FMCG and banking, capped downside as trade progressed. 
 
Participants, mainly traders, are in the fix due to excessive volatility and selling pressure in broader market while Nifty has been showing resilience. Trade selection becomes difficult in such scenario. We feel the upcoming earnings season would ease the pressure and also provide the needed trigger for next directional move. Meanwhile, we advise keeping limited exposure mainly in index majors and quality midcap stocks
Nifty Metal index ended 1.42% lower. Top losers:

COMPANY LATEST PREV CLOSE LOSS() LOSS(%)
NATL. ALUMINIUM 59.75 62.10 -2.35 -3.78
TATA STEEL 553.30 571.10 -17.80 -3.12
VEDANTA 221.30 228.05 -6.75 -2.96
JINDAL STEEL 211.85 216.45 -4.60 -2.13
S A I L 78.60 80.30 -1.70 -2.12

Nifty sectoral performers of the day


BSE Sensex: Infosys, Tata Steel, RIL among top losers of the day, Yes Bank top gainer


Market at close
 
The S&P BSE Sensex ended at 35,575, down 71 points while the broader Nifty50 index settled at 10,750, down 20 points.
Analysts bet on rural economy theme; Nifty FMCG index hits new high

Shares of fast moving consumer goods (FMCG) are trading higher for the second straight day on expectation of a rise in rural consumption, after the Union Cabinet approved a hike in minimum support prices (MSP) for Kharif crops by 1.5 times of the input cost for the 2018-19 season on Wednesday. READ MORE

Q1FY19 results preview by Kotak Securities

We expect 1QFY19 net income of the KIE coverage universe to be flat yoy. We expect strong growth in the net income of (1) automobiles (strong volume growth on low base and operating leverage-led margin expansion), (2) consumers (continued volume-led sales growth and margin expansion due to operating leverage), (3) metals & mining (higher domestic realizations for ferrous although global prices of base metals were mixed) and (4) pharmaceuticals (led by domestic formulations and stabilization of US businesses) sectors.

We model net loss for (1) banks under coverage (high loan-loss provisions as well as MTM losses on investment portfolio) and (2) telecom (ARPU dilution due to intense competition). We expect net income of the BSE-30 Index to increase 6% yoy and that of Nifty-50 Index to increase 12% yoy. We estimate ‘EPS’ of the BSE-30 Index at Rs1,755 for FY2019E and Rs2,180 for FY2020E. Our ‘EPS’ estimates for Nifty-50 Index for FY2019E and FY2020E are Rs545 and Rs670.
Lenders may invoke guarantees of Shriram Transport Finance on SVL Ltd

Lenders of SVL Ltd, an unlisted holding company of the Shriram group, are planning to invoke the guarantees of Shriram Transport Finance Company (STFC) after a majority of the SVL's investments turned bad. SVL's subsidiaries like Shriram EPC, Orient Green Power and Haldia Coke are facing insolvency proceedings in the National Company Law Tribunal after a loan default. READ MORE

Gold firms up for 2nd session on sustained buying

Strengthening gains for the second straight session, gold prices today edged up by Rs 10 to Rs 31,580 per 10 grams at the bullion market on persistent buying by local jewellers amid a firm trend overseas.
 
Silver prices too surged by Rs 690 to Rs 40,600 per kg backed by increased offtake by industrial units and coin makers. READ MORE

Glencore gives shares $1 billion buyback lift after US subpoena

Commodities trader and miner Glencore will buy back shares worth $1 billion in a move analysts said looked timed to soothe investor nerves just two days after a subpoena from US authorities rattled the stock. READ MORE
MFs dangle ESOPs carrot to retain top talent ahead of stock market listings

Asset management companies (AMCs) are dangling employee stock option plans (ESOP) in a bid to hold on to key talent as the industry gears up for the next phase of growth and large players look to list on the bourses. READ MORE

Market Check

 
S&P BSE Sensex 35,592.07 -0.15%
 
Nifty 50 10,762.35 -0.07%
 
S&P BSE 200 4,621.83 -0.15%
 
Nifty 500 9,180.25 -0.16%
 
S&P BSE Mid-Cap 15,355.74 -0.39%
 
S&P BSE Small-Cap 16,015.29 -0.22%

ICICI Prudential MF seeks clarity from Sebi on compensation to investors

The country’s largest asset manager, ICICI Prudential Mutual Fund, has approached the Securities and Exchange Board of India (Sebi) on the issue of compensation to unit holders due to losses incurred from the share sale of sister concern ICICI Securities.
 
Earlier this week, the market regulator directed the found house to return Rs 2.4 billion, along with an interest of 15 per cent per annum, to the five schemes that applied in the initial public offering (IPO) of the broking and investment banking firm. READ MORE

State lenders lapping up G-secs again, but is it enough to revive market?
 
The tide may be turning for Indian sovereign bonds as the relentless selling from government-owned banks over the past year is showing signs of easing.
 
State lenders, the largest holders of debt, have been net buyers in seven of the past eight sessions through July 3 for the first time since Nov 2017. They’ve added bonds worth Rs 75.91 billion ($1.1 billion) in this period, data from the Clearing Corp. of India Ltd. show. READ MORE
Vedanta, BHEL, Grasim, Power Grid, Reliance Power hit 52-week low
 
Shares of Vedanta, Bharat Heavy Electricals (BHEL), Grasim Industries, Power Grid Corporation, Reliance Power, Tata Motors, NMDC and Rural Electrification Corporation (REC) were among 22 stocks from the S&P BSE 500 index that hit their respective 52-week low on the BSE in intra-day trade on Thursday.
 
Essel Propack, Great Eastern Shipping, Greenply Industries, Kajaria Ceramics, Kwality, Mangalore Refinery and Petrochemicals (MRPL), Rajesh Exports and Somany Ceramics, too, hit 52-week low today. READ MORE
Telecom result preview Bharti to slip into the red, Idea's losses to double in June quarter
 
Despite the subscriber gains from exits of smaller operators and consolidation in the sector, listed telecom operators Bharti Airtel and Idea Cellular are expected to report losses to the tune of over Rs 20 billion for the June quarter. While Bharti Airtel will gain on the revenues front due to the consolidation of Telenor, it is expected to report a loss of over Rs 5 billion for the June quarter. READ MORE
NEWS IMPACT Broadband stocks fall as RIL announces launch of JioGigaFibre
 
Shares of broadband and cable TV operators like Hathway Cable & Datacom, Den Networks and Siti Networks have tanked up to 18% after the Reliance Industries announced the launch of Jio Gigafibre.
 
Hathway Cable & Datacom hit a 52-week low of Rs 19.85, down 18% on the BSE in intra-day trade. Den Networks plunged 11% to Rs 66.05, trading close to its 52-week low of Rs 65 touched on August 11, 2017., while Siti Network was down 5% at Rs 13.12 on the BSE. Bharti Airtel too was down 1.1% at Rs 362.30. READ MORE 


Telecom stocks post RIL AGM

COMPANY LATEST PREV CLOSE LOSS() LOSS(%) VOLUME
TEJAS NETWORKS 294.95 299.30 -4.35 -1.45 270
BHARTI AIRTEL 361.95 366.45 -4.50 -1.23 192034
IDEA CELLULAR 54.95 55.15 -0.20 -0.36 898781

Market check

Index Current Pt. Change % Change
 
S&P BSE SENSEX 35,563.03 -82.37 -0.23
 
S&P BSE SENSEX 50 11,260.00 -25.66 -0.23
 
S&P BSE SENSEX Next 50 31,881.03 -87.45 -0.27
 
S&P BSE 100 11,014.61 -25.72 -0.23
 
S&P BSE Bharat 22 Index 3,281.30 -8.75 -0.27

RIL AGM

Reliance accounts for 8.9% India's merchandise exports
RIL AGM

Mukesh Ambani on oil & gas
: RIL-BP JV seeking opportunities to market gas in India
RIL AGM
 
Mukesh Ambani on oil & gas: Plans to deploy technologies along with its partner, BP, to ensure gas production from KG-D6 by 2020. Aims to achieve production of 30-35 million cubic meters of per day by 2022
RIL AGM

Mukesh Ambani on refining: Commissioned world's largest coke gasification projects
RIL AGM

Mukesh Ambani on Oil & Gas biz: Proposes cross-border merger of Reliance Holding USA Inc. with RIL
RIL AGM

Mukesh Ambani on Oil & Gas biz: Successfully commissioned the largest Paraxylene complex with 4.2 mn metric tn
RIL AGM

Mukesh Ambani on Oil & Gas biz:
Committed to becoming one of the largest recylers of plastic and polymers; Adding carbon fibre & composites to portfolio petchem pdts
Market Check

 
S&P BSE Sensex 35,580.71 -0.18%
 
Nifty 50 10,754.55 -0.14%
 
S&P BSE 200 4,620.41 -0.18%
 
Nifty 500 9,176.70 -0.19%
 
S&P BSE Mid-Cap 15,367.41 -0.31%
 
S&P BSE Small-Cap 16,022.42 -0.18%

RIL AGM

Mukesh Ambani on Oil & Gas biz: Jamnagar refinery has now completed 20 years of operations
RIL AGM

Mukesh Ambani:
Jio has enabled RIL to strategically reinvent itself as a Tech Platform Co
RIL AGM

Mukesh Ambani: Confident Reliance Retail will become bigger, better & more profitable
RIL AGM

Mukesh Ambani: Will integrate physical and online market places under 'Bharat-India jodo'
RIL AGM 

Mukesh Ambani: Revenue crossed Rs 690 billion, growth of 100% year-on-year
RIL AGM

Mukesh Ambani: Customers can start register interest for JioGigaFibre from August 15
RIL AGM

Jio Giga Fibre will be the largest greenfield rollout that will cover 1,100 cities
RIL AGM

JioPhone 2 will be available at an inductory price of Rs 2,999 from August 15
RIL AGM

WhatsApp, Youtube and Facebook to be available on JioPhone from August 15
Stock update (Image source: NSE)

RIL AGM

Jio Giga TV calling introduced to enable video calls
RIL AGM
 
Mukesh Ambani on broadband: 1,100 cities to offer most advanced fibre-based broadband connectivity solutions. 
RIL AGM

Mukesh Ambani on broadband
: Co has invested over Rs 2.5 lk cr to provide mobile, broadband connectivity
RIL AGM

Launches a high-end phone - Jio Phone 2. Powered by horzontal display and a full keypad. Announces Monsoon Hungama offer for JioPhone. Users can exchange their existing feature phones for a new JioPhone at just Rs 500
RIL AGM

Mukesh Ambani on broadband: Will now extend fibre connectivity to homes, merchants, SMEs.
Most active telecom stocks

COMPANY NAME LATEST HIGH LOW CHG
()
CHG(%) VALUE
( CR)
VOLUME
REL. COMM. 13.75 14.10 13.40 0.10 0.73 36.63 26641293
IDEA CELLULAR 54.05 55.15 53.55 -1.10 -1.99 41.50 7677513
BHARTI AIRTEL 360.85 365.10 359.65 -6.55 -1.78 70.54 1954789
M T N L 15.90 16.30 15.85 0.05 0.32 0.60 379396
TATA TELE. MAH. 4.40 4.65 4.40 -0.15 -3.30 0.07 162945
TATA COMM 589.75 595.85 587.25 -0.95 -0.16 8.92 151241
ONMOBILE GLOBAL 39.35 41.20 39.20 -0.50 -1.25 0.46 116342
TEJAS NETWORKS 296.85 298.65 292.35 -2.70 -0.90 0.19 6536
 

RIL AGM

Bringing WhatsApp, Youtube and Facebook to the JioPhone
RIL AGM

Fiber broadband service to be called JioGigaFibre
JIO AGM

Jio is a customer-obsessed organisation
SECTOR WATCH Telecom

COMPANY LATEST() CHG() CHG(%) VOLUME
REL. COMM. 13.80 0.16 1.17 2886785
IDEA CELLULAR 54.15 -1.00 -1.81 513422
BHARTI AIRTEL 361.05 -5.40 -1.47 82534
TATA COMM 590.00 1.90 0.32 2238
TEJAS NETWORKS 297.95 -1.35 -0.45 167
» More
RIL AGM

Will be able to multiply customer base without additional investment: Mukesh Ambani
RIL AGM

Plans to offer fiber-based broadband connectivity
RIL AGM

On track to achieve our target of 99% population coverage with 4G LTE: Mukesh Ambani
RIL AGM

Have over 25 million Jio Phone users in India. We are now taking the JioPhone to the next level, with added capabilities and functionalities: Mukesh Ambani
RIL AGM

Stock quote (Source: NSE)


RIL AGM

Jio determined to move India in the top 5 in the fixed line broadband
RIL AGM

Jio & Retail contributed to 13% of consolidated EBITDA vs 2% earlier
RIL AGM

Capacity utilisation of Jio network at 25%
RIL AGM

More than 25 million Jio phone users in India
RIL AGM

Hydrocarbon & consumer biz have helped co create more records,scale new heights: Mukesh Ambani
RIL AGM

Voice Usage grew from 250 crore mins per day to 530 crore mins per day 
RIL AGM

Data usage grew from 125 crore GB to 240 crore GB
RIL AGM

Stock quote (Source: NSE)


RIL AGM 

Customer base at 215 million customers within 22 months of start
RIL AGM

RIL highest income tax payer in the private sector
RIL AGM

Rs 263.12 billion excise duty paid
RIL AGM

Net profits grew by 20.6% to Rs 360.75 billion
RIL's 41st AGM begins

Stock quote: (Source: NSE)


Ahead of RIL AGM

COMPANY LATEST PREV CLOSE LOSS() LOSS(%) VOLUME
IDEA CELLULAR 54.20 55.15 -0.95 -1.72 459954
BHARTI AIRTEL 360.75 366.45 -5.70 -1.56 60707
TEJAS NETWORKS 298.00 299.30 -1.30 -0.43 12
REL. COMM. 13.60 13.64 -0.04 -0.29 1498804

At 41st RIL AGM, Jio may take centre stage again; Street looks for numbers

The last two annual general meetings of Reliance Industries were nothing short of fun fare — announcing telecom venture Jio in the first and launch of JioPhones in the second. At the 41st AGM on Thursday, Jio may take the centre stage again.
 
According to RIL’s AGM notice, among other resolutions, RIL looks to seek shareholder approval to raise up to Rs 200 billion through non-convertible debentures (NCD). READ MORE

YES Bank gains 3% post SEBI's approval to launch mutual fund business

Shares of YES Bank were trading 3% higher at Rs 346 per share on the BSE after the bank said that it has received the final regulatory approval (Certificate of Registration) from the Securities & Exchange Board of India (SEBI) to commence its mutual fund business. READ MORE

Madras HC tells Sebi to take action against alleged scam in NSEL

The Madurai Bench of the Madras High Court has directed the ministry of finance, ministry of corporate affairs, and the Securities and Exchange Board of India (Sebi) to consider a complaint against the delinquent brokers of National Spot Exchange Ltd (NSEL) in connection with the Rs 56 billion payment crisis scam where the government is taking action. READ MORE

Titan Company falls 4% on concerns of muted sales growth in June quarter

Shares of Titan Company have fallen 4% to Rs 853 per on the BSE in early morning trade after the Tata Group Companysaid that the sales growth in April-June quarter (Q1FY19) has been muted due to the weakness in the consumer sentiment. READ MORE

Market Check

 
S&P BSE Sensex 35,648.26 0.01%
 
Nifty 50 10,770.65 0.01%
 
S&P BSE 200 4,630.20 0.04%
 
Nifty 500 9,195.50 0.01%
 
S&P BSE Mid-Cap 15,427.13 0.08%
 
S&P BSE Small-Cap 16,077.78 0.17%

Chanda Kochhar asked to reply to Sebi show cause notice by July 10

The Securities and Exchange Board of India (Sebi) has set a fresh deadline for ICICI Bank and its managing director and chief executive officer, Chanda Kochhar, to reply to a show-cause notice over alleged violation of listing disclosure norms. The private sector lender and Kochhar did not respond to the notice by the June 7 deadline, citing lack of documentary proof to support the allegations. READ MORE

F&O Strategies
 
REPCOHOME JULY FUTURES: Buy around 576-578 for a potential upside target of 595-598 with a stop below 568 (spot levels)
 
HINDPETRO JULY FUTURES: Sell around 254-255 for a potential downside target of 240-242 with a stop loss placed above 263 (spot levels)
 
COVERED CALL STRATEGY IN ESCORTS : Buy one lot of ESCORTS JUL FUT @ 883-884 & Sell one lot of ESCORTS JUL 900 CE @ 22-23 | BEP: 862 | Max Profit: 41800 | Max Loss: Unlimited Below BEP | Positional Stop Loss: 848 (Spot Levels)

(Source: Karvy)
Nifty sectoral trend


BSE Sensex gainers and losers


Stocks in news 
 
 
·         RIL to hold its annual general meeting today.
 
·         Titan said jewellery business will post muted growth in June-ended quarter
 
·         Biocon’s sterile drug product facility received EU GMP certification
 
·         Yes Bank received SEBI approval to launch mutual fund business
 
·         Force Motors June total sales up 8.2% to 2,669 units
 
·         Nath Bio Genes (India) promoters released pledge on shares held by ARCIL after clearing all outstanding loans
 
·         Intellect Design Arena in pact with Banco Santander for implementation of its digital transaction banking platform
 
·         FIEM Industries partnered with Toyodeso, Japan and Toyota Tsusho, Japan for manufacturing of bank angle sensor for motorcycles in the Indian market
 
·         Future Lifestyle to acquire up to 29.9% in Koovs for Rs 140 crore
 
·         Religare files plea under IBC against Bharat Road Network claiming a default of Rs 51.3 cr
 
·         Va Tech Wabag to consider fund raising proposal on July 9.
 
·         Seamec, in consortium with Kreuz Subsea, enters into $22 million deal with ONGC for charter hire of vessel.
 
·         Som Distilleries & Breweries proposed arm acquires brewery in Odisha for Rs 46 cr

(Source: IIFL report)
Market at open
 
At 9:16 AM, the S&P BSE Sensex was trading at 35,631, down 14 points while the broader Nifty50 was ruling at 10,768, down 2 points.
Market at pre-open

Index Current Pt. Change % Change
 
S&P BSE SENSEX 35,652.53 +7.13 +0.02
 
S&P BSE SENSEX 50 11,289.48 +3.82 +0.03
 
S&P BSE SENSEX Next 50 32,048.35 +79.87 +0.25
 
S&P BSE 100 11,049.71 +9.38 +0.08
 
S&P BSE Bharat 22 Index 3,292.19 +2.14 +0.07

(Source: BSE)
Top Picks: Bank Nifty 
 
Current: 26,425 (futures: 26,425) 
Target: NA 
Stop-long positions at 26,300. Stop-short positions at 26,550. Big moves could go till 26,750, 26,100. Resistance at 26,450-26,500. 

Click here for more
Top trading ideas by Prabhudas Lilladher:
 
BUY APOLLO TYRES
CMP: Rs 253.30
TARGET: Rs 270
STOP LOSS: Rs 244
 
The stock has corrected well in recent times from the level of around 300 to bottom out at around 250 levels and has indicated a positive candle pattern in the daily chart to signify strength and potential to rise further in the coming days. The RSI also has bottomed out and has shown a trend reversal from the oversold zone to signal a buy and has moved to a positive bias zone. With good volume activity witnessed, we recommend a buy in this stock for an upside target of 270 keeping a stop loss of 244. Click here for more
Future Lifestyle Fashions  (FLFL IN):  Acquires 29.9% Stake in Koovs in Online Foray
Rating  BUY
Price Target Rs 540
 
FLFL has acquired a 29.9% stake in Koovs (Koovs Plc) for approx. INR1.40bn, giving it access to an online fashion platform, something that had been missing from its portfolio. With this online foray, FLFL will be able to operate an omnichannel play along with its physical store network and push its own brand portfolio. We maintain our BUY recommendation with a price target of Rs 540

(Source: Jefferies)
Nifty outlook for Prabhudas Lilladher:
 
Nifty gets its daily trend turned up after 7 days and Bank Nifty‘s daily trend has turned up after 5 days. Also Nifty has crossed & closed above the hurdle of 10,730-10,750 implying room for further upside to the target of 10,800-10,850. The support for the day is seen at 10,710 while resistance is seen at 10,830. Mid Cap sector as mentioned earlier looks promising from here on & also Pharma sector with stocks like Lupin, etc.
Nomura on Tata Motors

For June-18, we expect ~3% growth in overall retails for JLR and ~1% growth in wholesales. In FY19F, we factor in 9% growth in overall JLR volumes driven by full impact of RR/RR-refresh, E-Pace, XE (Long Wheel Base) in China and launch of I-Pace in Sep-18.

The stock is trading at 3.5x/2.7x FY19/20F EV/EBITDA, which is at the lowest end of the historical trading band even with EBIT margin assumptions (JLR 3.8-4.9%, Standalone 2.8%/3.5% in FY19/20F) much more conservative than guidance (JLR 4-7%, Standalone 3-5%). Maintain Buy.
Kotak Securities on Adani Ports & SEZ

FY18 performance for Adani Port (APSEZ) reflect (1) strong growth in volumes across segments backed by expansion of capacity; (2) healthy contribution from subsidiary ports; (3) healthy consolidated EBITDA margin, (4) higher non-recurring income and rationalization of interest cost that boosted PAT. The company’s good FY19 volume growth guidance, led by commissioning of new ports, new cargo sourcing and market share gains, is a positive.
 
Stake dilution by the promoters of 4% gives us more comfort for addressing group level debt servicing. We estimate the consolidated entity to report volume CAGR of 11% over FY18 to FY20E with the new ports of Dhamra, Hazira, Dahej, Kattupalli and the container volume at Mundra contributing the maximum.
 
Our target price is based on SOTP valuation with a weighted average cost of capital (WACC) of 12.0% and book values for other investments. Maintain BUY with an unchanged target price of Rs 485.
EVENT TO TRACK TODAY RIL to host 41st AGM today
 
The last two annual general meetings of Reliance Industries were nothing short of fun fare — announcing telecom venture Jio in the first and launch of JioPhones in the second. At the 41st AGM on Thursday, Jio may take the centre stage again.
 
According to RIL’s AGM notice, among other resolutions, RIL looks to seek shareholder approval to raise up to Rs 200 billion through non-convertible debentures (NCD). READ MORE


COMMENT Dhananjay Sinha, Head, Institutional Research, Economist and Strategist, Emkay Global

A steep rise in average Minimum Support Price (MSP) by 15% for the ongoing summer crops (kharif) marks a lagged attempt to reverse the faltering farm sector fortunes and bolster the continuing rural upliftment focus of the government ahead of the upcoming elections.

These developments corroborate our overweight (OW) position on Rural Consumption and Agri sectors we have held since 2016. We maintain that RBI will hike policy repo rate by an additional 50bps during the rest of FY19; 10-year G-Sec fair value is estimated at 8.4% (8% currently). We maintain our “underweight” position on PSU Banks and remain selective on the NBFC sector plays
Nomura on MSP hike

On monetary policy, the decision to raise MSP (without an effective procurement) is, at the margin, negative for inflation. With rising inflationary pressures due to strong demand, currency depreciation and higher oil prices, we continue to expect a 25bp repo rate hike in August. Beyond this, we see the current growth recovery as unsustainable; hence we see rates on hold thereafter. If MSPs are made effective, then the higher inflationary impulse could result in a more significant policy tightening,
SGX Nifty
 
Trends on SGX Nifty indicate a flat opening for the broader index in India, a fall of 5.5 points or 0.05 per cent. Nifty futures were trading around 10,767-level on the Singaporean Exchange.
Markets on Wednesday


S&P BSE Sensex 35,645.40 0.75%
 
Nifty 50 10,769.90 0.65%
 
S&P BSE 200 4,628.55 0.49%
 
Nifty 500 9,194.55 0.49%
 
S&P BSE Mid-Cap 15,415.26 -0.17%
 
S&P BSE Small-Cap 16,050.59 0.38%

Asian stocks wobbly before tariff deadline in Sino-US trade row
 
Asian stocks were shaky while major currencies barely budged in early trade on Thursday, as financial markets remained in a state of anxious uncertainty on the eve of a US deadline to slap tariffs on Chinese imports.
 
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.1 per cent, having moved in and out of the red in early trade. The index has lost 1.6 per cent this week, during which it plumbed a nine-month low.
 
Asia was bereft of the usual leads as the US markets were closed on Wednesday for the Independence Day holiday. Japan’s Nikkei lost 0.15 per cent, South Korea’s KOSPI slipped 0.2 per cent, Hong Kong’s Hang Seng was off 0.2 per cent and the Shanghai Composite Index edged down 0.1 per cent.
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