Closing belll: The equity indices ended in red on Monday clouded by weak cues from Asian markets. The broader NSE index fell 0.84% at 11,189.20, while the benchmark BSE index dropped 0.52% at 37,686.37.

At the close, ICICI Bank, IndusInd Bank, HCL Technologies, TCS and Infosys were among the top gainers, rising up to 2.90 percent. On the other hand, Indiabulls Housing, Grasim, Tata Motors, Vedanta and Bharti Infratel , fell up to 12 percent.

All the sectoral indices ended in red exept NSE IT. The top sectoral losers were Auto, Media, Metals and PSU banks.

Overall market breadth was negative. Out of the total 2,110 stocks traded at NSE, 1,274 declined, 504 advanced while 332 remained unchanged.

Shares in Indiabulls Housing Finance also fell as much as 12 percent, after BJP Rajya Sabha Member Subramanian Swamy alleged that it embezzled as much as ₹1 lakh crore from the National Housing Bank and laundered the money.

Alembic Pharma's Q1 net 37% to Rs 124 cr

Alembic Pharmaceuticals on Monday posted a 36.75 per cent rise in its consolidated net profit to Rs 123.72 crore for the first quarter ended June 30, driven by robust sales in the US market.

The drug firm had reported a net profit of Rs 90.47 crore in the corresponding period of 2018-19.

Revenue from operations rose to Rs 948.91 crore in the June quarter as compared with Rs 862.53 crore in the year-ago period, Alembic Pharmaceuticals said in a regulatory filing.

NSE sectoral indices at 3 pm

Nifty gainers/losers

Monsoon to stay strong this week as fresh circulation forms

The monsoon would stay active over Central India, West India and adjoining North-West India this week despite India Met Department (IMD) not pressing with the outlook for a fresh low-pressure area in the Bay of Bengal.

Fairly widespread to widespread rainfall with isolated heavy to very heavy falls may prevail over Odisha, Jharkhand, Madhya Pradesh, Maharashtra, Gujarat and Rajasthan during these days. Read more on this here

Moody’s cautions new bad loan addition in retail, SME segments

Moody’s Investors Service on Monday cautioned that economic growth in India over the next 12-18 months will remain weaker than in prior years, which in turn could lead to the creation of new non-performing loans (NPLs) in the retail and small and medium enterprise segment. However, it said its 12-18 month outlook on the banking system in India is stable.

“While the banks’ operating environment will stay stable, the economic slowdown in India will pose challenges to the banks’ asset quality,” said Alka Anbarasu, Vice President and Senior Credit Officer.

Economic growth in India over the next 12-18 months will remain weaker than in prior years, at a time when the banks are recovering from legacy non-performing loans (NPLs), the global credit rating agency said in a statement.

In addition, despite stability in the country's macro fundamentals, stress among non-bank financial institutions (NBFIs) will continue to constrain economic growth.

Shilpa Medicare gets 5 observations from USFDA for its Raichur facility

Drug firm Shilpa Medicare on Monday said it has received five observations from the US health regulator for its Raichur facility after the completion of an inspection.

“We have completed USFDA (United States Food and Drug Administration) audit at our API (active pharmaceutical ingredient) site, Raichur between July 22-26, 2019,” Shilpa Medicare said in a filing to the BSE.

SBI cuts deposit rates on various tenors

The State Bank of India (SBI) has slashed deposit rates on various tenors citing surplus liquidity and falling interest rate scenario.

Interest rates have been reduced by 50-75 basis points (bps) for time deposits with shorter tenors of up to 179 days, SBI said in a statement on Monday.

For time deposits with longer tenors, there is a reduction of up to 20 bps in the retail segment and 35 bps in the bulk segment, it said.

Nifty Call: Sell in rallies with fixed stop-loss at 11,260 levels

The Sensex and the Nifty started the session on a flat note and immediately slipped into negative territory and continued to trend downwards. The Asian markets are hovering in the red, the Nikkei 225 has marginally declined by 0.2 per cent to 21,616 levels and Hang Seng index has tumbled 1.46 per cent to 27,982 levels in today's session. Both the Sensex and the Nifty has fallen over 1 per cent witnessing selling pressure. The market breadth of the Nifty index is biased towards declines. The India VIX has jumped 8.6 per cent to 13.17 levels. The Nifty mid- and small-cap indices have also slumped almost 1 per cent each. Read more on the technicals here

PNB Housing Finance raises $ 100 million from IFC

PNB Housing Finance Ltd (PNB HFL) has raised $100 million from the International Finance Corporation (IFC), for on-lending to buyers in affordable housing projects.

The fund raising has been done under the RBI's automatic route in the revamped external commercial borrowings framework.

Sanjaya Gupta, Managing Director, PNB HFL, said, “We express our gratitude to IFC for their continuous support and trust in the company’s operations and overall robustness. The line of credit will not only enhance the liquidity but will further balance our long term ALM position as the facility is for five years.”

Gupta said that this is the first ECB disbursement during the current financial year under the RBI automatic route. “The RBI has allowed us to borrow ECB upto $750 million annually under the automatic route, and considering the strong fundamentals and inherent growth of the company, we are hopeful that in the coming months, our company will further utilise the facility,” he said.

Hemalata Mahalingam, Manager-Financial Institutions Group, IFC South Asia, said, “To support the Indian government's vision of ‘Housing for All by 2022’, our country strategy places a strong emphasis on the affordable housing sector. Our partnership with PNB Housing Finance will help them further expand to smaller towns and cities and reach low-income customers with loans to buy homes and help raise their living standards.”

Affle India - Initial Public Offer: Adopt a wait-and-watch approach

Affle (India) plans to raise nearly ₹460 crore in the initial public offering, with a fresh issue of up to ₹90 crore and an offer for sale by the promoter Affle Holdings of around ₹369 crores. Affle India is an ad-tech company that offers a mobile advertising platform for e-commerce firms, brands and advertising agencies.

Affle’s various platforms are used by companies in the e-commerce, media, retail and FMCG sectors, to target people in the digital space (that includes mobiles and desktops) for advertisements. A chunk of Affle’s revenue is on a ‘cost per converted user’ (CPCU) basis. This means Affle gets paid every time a user clicks on an advertisement on a mobile device, opens the mobile application or downloads the application. While the business model is novel and has big opportunity for growth in the fledgling market, investors can give the IPO a miss for now. Read more on BL's call here

Grasim Industries hits near 2-1/2-month low; chart points to more downside

The shares of Grasim Industries fell as much as 6.97 percent on Monday to ₹814, its lowest since May 16.

The stock has broken below the support at ₹860.31, the 14.6 percent Fibonacci projection level of the downtrend from Nov. 2, 2017 high to Feb. 15, 2019 low. The wave pattern suggests that a five-wave downtrend (wave C) has started for the stock.

In the near term, stock may fall to a support at ₹716.14, the 38.2 percent projection level, though, some support is also expected at ₹805.33, the 23.6 percent projection level.

Trend intensity (TI) indicator rises two points to 15, which suggests that a new downtrend has started for the stock. The MACD is also negative and below its signal line.

The stock is down 81.3 percent in the past 3 years to Friday's close, while the broader NSE index has gained 36.2 percent in the same period.

Indiabulls Housing Finance drops 10% on Swamy’s fraud allegation

The shares of Indiabulls Housing Finance Ltd fall as much as 10 per cent to Rs 562.

Subramanian Swamy, BJP MP, in a tweet said that he has sent letter to Prime Minister Narendra Modi, accusing Indiabulls of fraud worth more than Rs1 lakh crore ($14.5 billion).

He said that Indiabulls and its associates formed more than 100 shell real-estate firms to take loans from state-owned National Housing Bank (NHB) and re-allot or siphon it off to other real-estate companies in multiple states in the range of Rs 30 crore to Rs 1,000 crore.

The company rejected in a statement, highlighting outstanding loans, as on July 28, from NHB to Indiabulls as zero. The stock down 27 per cent this year, as of last close.

NSE index may test support at 11,108 level

The NSE index is likely to test a support at 11,108.3. This support is identified as the 100 percent Fibonacci retracement level on the uptrend from May 14 low to June 3 high.

Index's trend intensity (TI) indicator rises to 20, which suggests that it is trending downwards, and its MACD is also negative and below its signal line.

The index has started to fall after facing strong resistance at its 200-day exponential moving average (EMA) and the 38.2 percent Fibonacci retracement level on the uptrend from the Oct. 26, 2018 low to the June 3, 2019 high.

The wave pattern on the intra-day chart suggests that the corrective sub-wave b within wave iii of the five-wave downtrend may have completed. The completion of sub-wave b suggests that the index may fall further to a support at 11,108.3 level, though some support is also expected at 11,208.41.

On the upside though, a break above the 11,301.43 level may lead to further gains.

ZEE5 and ALTBalaji to jointly develop original content

ZEE5 and ALTBalaji have entered a content-sharing agreement to co-create original content, which will only be available on both platforms.

The content-sharing arrangement, includes the co-creation of over 60 original content series in Hindi, which will be available exclusively to SVOD subscribers of both platforms. This association, which is a collaborative process of understanding consumer insights and co-marketing, hopes to serve the viewer better and also result in improved monetisation for both.

ICICI Bank sees best day in 2 months

The shares of  ICICI Bank  rise as much as 4.7 per cent to Rs 435.35, its biggest daily per cent gain since May 24.

On Saturday, the bank posted June-quarter  net profit  of Rs 1,908 cr ($276.72 million) versus a loss of 119.55 crore year ago, helped by lower provisions and higher retail loan growth.

Also read:   Q1 results: Is the worst over for ICICI Bank?

The bank’s net non-performing asset decreased by 51 per cent to Rs 11,857 crore at June 30, 2019, from Rs 24,170 crore at June 30, 2018. The Q1 net interest margin 3.61 per cent as against 3.19 per cent year ago.

Over 234 lakh shares change hands, compared with 30-day average of 134 lakh shares. Up to last close, the bank’s stock was up 15.5 per cent this year.

Vodafone Idea slumps to record low after Q1 loss

The shares of Vodafone Idea Ltd have fallen by as much as 16.2 per cent to a record low of Rs 7.75.

The telecom company posted first-quarter net loss of Rs 4,874 crores ($707.15 mln) versus a profit of Rs 257 crore a year ago, hurt by fall in tariffs and customer churn. The June-quarter churn 3.7 per cent versus 7.2 per cent last quarter.

The average revenue per user at Rs 108 in the June-quarter.

The stock has posted its biggest intraday per cent loss since May 2012. It is down 46 per cent this year, as of last close. Up to last close, stock had fallen 59.4 per cent this year, while Bharti Airtel had gained 16.7 per cent

India’s $10 billion overseas debt sale: Here are some options for the Centre

With India’s plans for its inaugural overseas bond sale shrouded in confusion, investors are assessing the government’s options for the $10 billion offering.

The departure of the official handling the sale and reports of opposition from the Prime Minister’s Office have left investors wondering if India will press ahead with a foreign-currency debt sale, opt for the issuance of rupee-denominated notes known as ‘Masala bonds’, or ease foreign ownership limits on local markets instead. Read the full article here

Markets update: Equity benchmark BSE Sensex and NSE Nifty were trading on a cautious note in the morning trade on Monday following weak cues from Asian peers amid sustained foreign fund outflow.

At 10.40 am, the 30-share index was trading 67.53 points or 0.18 per cent lower at 37,815.26 in the morning trade; while the broader Nifty was slightly lower at 11,244.30, showing a fall of 40.00 points or 0.35 per cent.

In the previous session, the 30-share index closed at 37,882.79, registering a gain of 51.81 points or 0.14 per cent, and the broader NSE Nifty rose 32.15 points or 0.29 per cent to settle at 11,284.30.

In early trade, ICICI Bank, HCL Tech, TechM, TCS, Infosys, IndusInd Bank, Kotak Bank HUL and Axis Bank were among the top gainers, rising up to 2.77 per cent.

On the other hand, M&M, Tata Motors, SBI, Yes Bank, Tata Steel, Asian Paints, ITC, Maruti, HeroMotoCorp, and Bajaj Auto fell up to 3.84 per cent.

On a net basis, foreign institutional investors sold equities worth Rs 1,503.26 crore Friday, while domestic institutional investors purchased shares to the tune of Rs 1,917.52 crore, provisional data available with stock exchanges showed.

Q1 results round-up of life insurance companies

Life insurance companies reported healthy growth in value of new business (VNB) last fiscal. The momentum of VNB picked up in the latest June quarter, thanks to increased focus on the protection business. Strong growth in new business premium, better profitability, cost-efficiencies, good distribution network and product innovation, are key positives that should keep earnings of the three listed players — HDFC Life, ICICI Prudential Life Insurance and SBI Life — in good stead through FY20. Read more on the analysis here

Take a long call on Tata Motors

The stock of Tata Motors (₹148) rules at a crucial level. Though the long-term outlook remains weak, in the short term, the stock could see a bounce back. While it finds strong support at ₹136, an immediate resistance appears at ₹168. However, only a close above ₹232 will alter the current negative trend for the stock. Till such time, the counter will move in a rough terrain only. Read more on the F&O pointers here

HEG hovers at a key support

Ever since recording a new high at ₹4,950 in October 2018, the stock of HEG has been in a long-term downtrend, forming lower peaks and troughs. While trending down, it emphatically breached key supports at ₹2,500 and ₹1600. The stock recorded a 52-week low at ₹915 and found support last week. Read more here

Indiabulls HFL rejects Swamy's charge of embezzling Rs 1 lakh cr from NHB

Indiabulls Housing Finance Ltd  (IBHFL), on Sunday, rejected allegations in Rajya Sabha Member Subramanian Swamy's letter circulating in social media, alluding embezzlement of more than Rs one lakh crore from the National Housing Bank (NHB). Read more here

Rupee slips 6 paise to 68.95 versus USD in early trade

The rupee opened on a weak note and fell 6 paise to 68.95 against the US dollar in early trade on Monday amid foreign fund outflows and cautious opening in domestic equities. Read more on forex report here

Oil falls after “constructive” talks on Iran's nuclear deal

Oil prices fell on Monday after Iran described emergency talks on a multi-party nuclear agreement with a group of signatories as “constructive”, suggesting an easing of tensions in the Middle East.

Brent crude futures were up 23 cents, or 0.4 per cent, at $63.23 a barrel by 0054 GMT. Prices rose 1.6 per cent last week. Read more here

Q1 results: Is the worst over for ICICI Bank?

For ICICI Bank , that has been under pressure over the past few years owing to its bad loan troubles, the latest June quarter result has been comforting on several counts. A strong growth in the bank’s core net interest income, notable fall in slippages, healthy capital position and sound provision cover — are key positives in the June quarter performance. Read more on the analysis here

Graphite India: Buy

The stock of Graphite India had gained 9 per cent on Friday to close at ₹320, extending its weekly gain to almost 17 per cent. This rally provides investors with a medium-term perspective an opportunity to buy the stock at current levels.  Click here to read more on Chart Focus

Tata Steel is in a downtrend

Tata Steel extended its fall and kept the downtrend intact. The stock was down 2.8 per cent last week. An immediate resistance is in the ₹448-450 region and the next significant one is at ₹470, which can cap the upside.  Read more on the technicals here

RIL signals a trend reversal

RIL tumbled 2.8 per cent, breaking below the crucial support level of ₹1,250. The price action over the last month indicates that the stock has been lacking strong buyers to take it above ₹1,300. This coupled with the sharp fall below ₹1,250 gives an initial sign of the long-term uptrend getting reversed. Read more on the technicals here

Near-term view is unclear for Infosys

Infosys rose last week to test ₹800 as expected, but failed to sustain higher. The stock made a high of ₹804.25 and oscillated between ₹782 and ₹805 all through the week. The near-term outlook is unclear.   Read more on the technicals here

ITC can pause before further fall

ITC fell over a per cent in the initial part of the week, but managed to bounce thereafter. The stock made a low of ₹264.4 and reversed higher recovering all the loss. The 200-week moving average support is holding well as of now. However, a key resistance is at ₹273 (21-day moving average) which has to be breached to get a breather. Read more on the technicals here

The outlook for SBI is bearish

SBI tumbled 3.8 per cent last week, breaking below the key support level of ₹350. The next support near ₹335 is holding well as of now. As long as SBI sustains above this support, a corrective rally to ₹350 is possible in the near term. A strong break and a decisive close above ₹350 are needed to ease the downside pressure and bring back the bullish sentiment. Read more on the technicals here

The equity indices are trading flat with positive bias in the opening session on July 29.

At 09:17 am, the Sensex is up 27.58 points or 0.07% at 37,910.37, and the Nifty up 5.60 points or 0.05% at 11,289.90 points.

Nifty can be range-bound this year

A lot of water has flown under the bridge since the yearly index outlook for 2019, published on December 29, 2018.

The much-awaited Lok Sabha elections are over and we have the Modi-led NDA government once more in the saddle, far more empowered than before. Stock price movement in the first half of 2019 has mostly been driven by this event.

In the yearly outlook, the medium-term trend was not very clear. So we had outlined two scenarios — one, the bearish scenario was to unfold if the Nifty and the Sensex failed to surpass 11,150 and 36,800 respectively. In this case, the decline to 8,200 in Nifty and 27,200 in the Sensex would have been possible. Read more on the technicals here

Asian stocks drop as trade talks, Fed in focus

Asian shares drifted lower on Monday as markets anxiously counted down to a likely cut in US interest rates this week with much riding on whether or not the Federal Reserve signals yet more are in the pipeline.

US and Chinese trade negotiators also meet in Shanghai this week for their first in-person talks since a G20 truce last month, but expectations are low for a breakthrough.

Data on the weekend showed profits earned by China's industrial firms contracted in June, fuelling concerns that the bruising trade war will drag on economic growth.

“We remain cautiously optimistic that both sides can agree on a narrow agreement that addresses important trade-related issues, such as US demands to increase exports,” said analysts at Barclays in a note. “That said, we are sceptical about the prospects of a broader agreement that includes the more challenging security-related issues.” Click here to read more

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