Closing bell: Indian equities began August on a sombre note on Thursday, tracking losses in broader Asia, after U.S. Federal Reserve Chair Jerome Powell said Wednesday's 25 basis-point rate cut was not the start of a lengthy easing cycle that investors were hoping for.

Powell described the rate cut as “a mid-cycle adjustment to policy”, while markets took it as a sign that sharp further cuts were not imminent.

At close , the 30-share index ended 462.80 points, or 1.23 per cent, lower at 37,018.33. The BSE index hit an intra-day low of 36,694.18 and a high of 37,387.18.

Similarly, the NSE Nifty dropped 105.40 points, or 1.24 per cent,  to settle below 11,000-level at 10,980. During the day, the bourse hit a low of 10,881 and a high of 11,076.75.

In the Nifty pack, Maruti, Wipro, Bharti Infratel, Power Grid and Reliance Industries ended up to 2.13 per cent higher. On the other hand, Vedanta, JSW Steel, SBI, Tata Motors and Hindalco shedded up to 5.16 per cent.

The market breadth was negative as 1,187 shares declined against advance of 575 shares, while 330 shares were unchanged.

TVS Motor July sales down 13% at 2,79,465 units

TVS Motor on Thursday reported 12.98 per cent decline in total sales at 2,79,465 units in July.

The company, which makes two-wheelers and three-wheelers, had sold 3,21,179 units in the same month last year, TVS Motor Co said in a statement.

Mylan, Biocon launch biosimilar of cancer drug Herceptin in Australia

Biotechnology major Biocon and Mylan NV on Thursday launched biosimilar Ogivri, which is used for treatment of certain breast and stomach cancers in Australia.

It is a biosimilar of Hoffmann-La Roche’s Herceptin.

Ogivri is the first trastuzumab biosimilar approved and launched in Australia and available on the Pharmaceutical Benefits Scheme (PBS), the companies said in a joint statement.

Ashok Leyland sales down 28% in July

Hinduja Group flagship firm Ashok Leyland on Thursday reported 28 per cent decline in total sales at 10,927 vehicles in July as against 15,199 units in the same month last year.

Total domestic sales were at 10,101 units last month as compared to 14,205 units in July 2018, down 29 per cent, the company said in a statement.

Top Nifty gainers, losers @ 3 pm

Coal India to spend Rs 700 cr to procure 40 rakes

The Coal India has decided to procure rail wagons under general purpose wagon investment scheme at an estimated cost of Rs 700 crore.

“The Maharatna PSU’s board has given the green signal to procure 40 rakes at nearly Rs 700 crore. One rake comprises 59 wagons. According to a rough estimate, one rake can move 1.4 million tonne of coal per annum,” the company said on Thursday.

M&M sales fall 15% to 40,142 units in July

Homegrown auto major Mahindra and Mahindra on Thursday reported a 15 per cent fall in total sales to 40,142 units in July. The company had sold 47,199 units in the corresponding month last year, M&M said in a statement.

In the domestic market, sales were down 16 per cent to 37,474 units last month, compared with 44,605 units in July 2018.

Exports increased 3 per cent to 2,668 units, against 2,594 units in the year-ago month.

In the passenger vehicle segment, which includes utility vehicles, cars and vans, it sold 16,831 vehicles last month as compared with 19,781 vehicles in the same month of 2018, a dip of 15 per cent.

Coffee Day Enterprises shares tank another 10%; hit lowest trading permissible limit for 3rd day

Shares of Coffee Day Enterprises further plummeted 10 per cent to hit its lowest trading permissible limit for the day on Thursday as investor sentiment remained hit for the third consecutive trade amid slew of negative news surrounding the company.

The scrip tanked 10 per cent to Rs 110.95 -- its lower circuit limit as well as its 52-week low -- on BSE.

At NSE, shares dropped 10 per cent to touch its lowest trading permissible limit as also its one year low of Rs 110.50.

In three days, the shares have fallen by over 42 per cent on the BSE, eroding Rs 1,723.16 crore from its market valuation. The market cap of the company on Thursday stood at Rs 2,343.84 crore.

Exelixis, Dr Reddy’s arm Aurigene ink pact for novel therapies for cancer

Dr Reddy’s Laboratories on Thursday said US-based Exelixis Inc has announced entering into an exclusive collaboration with its arm Aurigene Discovery Technologies.

The agreement gives Exelixis, an oncology-focused biotechnology firm, the opportunity to in-license as many as six programmes from Aurigene, as per a statement by Exelixis Inc, Dr Reddy’s said.

Godrej Consumer Products Q1 net profit inches up at Rs 407.6 crore

FMCG major Godrej Consumer Products (GCPL) on Thursday reported a marginal 0.63 per cent per cent rise in consolidated net profit to Rs 407.6 crore in the first quarter ended June 30.

The company had posted a net profit of Rs 405.04 crore in the corresponding period last fiscal.

Total income during the quarter under review stood at Rs 2,370.14 crore, down 5.49 per cent as against Rs 2,508.08 crore reported in the year-ago period, GCPL said in a BSE filing.

Performance of sectoral indices @ 2 pm

Indian equities suffers worst July in 17 years; little hope in August too

Indian stocks just suffered their worst July in 17 years, and if history is to be believed, there is little hope that August will be much better.

The S&P BSE Sensex headed for its biggest drop in five months on Thursday, extending last months 4.9% retreat, as the disappointment with the countrys new budget, muted corporate earnings and the ongoing credit crunch remained a drag on sentiment. The index has fared better in August than July in only five years since 2002, data compiled by Bloomberg show.

Crisil cuts India’s GDP growth this fiscal to 6.9%

Crisil has sliced its estimate of India’s gross domestic product (GDP) growth by 20 basis points to 6.9 per cent for this fiscal, following a triangulation of downside risks.

The risks include weak monsoon, slowing global growth and sluggish high-frequency data for the first quarter, it said in a statement.

The slowdown would be pronounced in the first half, while the second half should find support from expected monetary easing, consumption and statistical low-base effect, CRISIL said, releasing its report on the outlook for India in fiscal 2019 titled ‘Uphill trek’.

Agricultural terms of trade are also expected to improve with a pick-up in food inflation. In addition, farmers would benefit from income transfer of Rs 6,000 per year announced by the Centre, and farm loan waivers in a few states.

India is only major Asian nation that’s growing its export share

The only major Asian economy that’s grown its export share since the start of the tariff wars in 2018 is the one with the fewest trade links to China.

India’s share of world exports rose to 1.71 percent in the first quarter of 2019 from 1.58 percent in the fourth quarter of 2017, data compiled by Bloomberg show. The share of every other economy among Asia’s 10 biggest exporting nations fell in the same period. Read more here

Why is the market falling post the Fed rate cut?

The Federal Reserve reduced the Fed funds rate by 25 basis points (bps), as widely expected by markets. But the commentary of Fed Chairman Jeremy Powell, after the Fed meeting threw a dampener on financial markets.

There was widespread expectations was that the Fed would be launching a rate cut cycle from August, with at least 75 bps cut in the Fed funds rate up to the end of the year, in order to help avoid recession in the US. But, the Fed Chairman made it clear that the rate cut was “mid-cycle adjustment to policy”, thus ruling out a series of rate cuts. Read more on the analysis here

Manufacturing PMI at two months high of 52.5 in July

A survey has showed that the Manufacturing Purchasing Managers’ Index (PMI) rose to 52.5 in July as against 52.1 in June. This optimism has come at a time when the performance of eight key industrial sectors, as represented by the core sector data, touched a 50-month low.

This index is prepared on the basis of a survey which was conducted among purchasing executives in over 400 companies. The companies were divided into 8 categories: basic metals, chemicals and plastics, electrical and optical, food and drink, mechanical engineering, textiles clothing, timber and paper, and transport.

An index over 50 implies ‘expansion’, while an index below 50 meant ‘contraction’. The index is prepared by IHS Markit and released along with a detailed report. Read the detailed report here

Maruti Suzuki reports 33% dip in July sales

The country’s largest car maker Maruti Suzuki India (MSI) on Thursday reported 33.5 per cent decline in total sales at 1,09,264 units in July. The company had sold 1,64,369 in July last year, Maruti MSI said in a statement.

Domestic sales declined by 36.3 per cent at 98,210 units last month as against 1,54,150 units in the year ago month, it added. Sales of mini cars comprising Alto and WagonR were at 11,577 units as compared to 37,710 units in July last year, down 69.3 per cent.

Update: Equity benchmark BSE Sensex on Thursday fell over 200 points in early trade on concerns over weak core industrial growth data and sustained foreign fund outflows.

At 10.50 am , the 30-share index was trading 333.34 points or 0.89 per cent lower at 37,147.78; and the broader Nifty also fell 65.10 points or 0.88 per cent to 11,020.30.

Sun Pharma files marketing authorisation application for psoriasis drug in Japan

Sun Pharmaceuticals on Thursday said it has filed application for manufacturing and marketing authorisation of Tildrakizumab, used to treat psoriasis and psoriatic arthritis, with Japanese health authority.

The company’s wholly-owned subsidiary has filed the application with Pharmaceuticals and Medical Devices Agency (PMDA), Japan, Sun Pharma said in a statement.

Bajaj Auto sales down 5% in July

Bajaj Auto on Thursday reported 5 per cent fall in total sales at 3,81,530 units in July, 2019.

The company had sold 4,00,343 units in the same month a year ago.

Domestic sales in July this year were at 2,05,470 units as against 2,37,511 units, down 13 per cent, Bajaj Auto said in a statement.

Total motorcycle sales stood at 3,22,210 units, a decline of 3 per cent, as compared to 3,32,680 sold in July last year.

Total commercial vehicle sales were at 59,320 units as against 67,663 units in the same month last year, down 12 per cent, the company said.

Exports in July were up 8 per cent at 1,76,060 units as against 1,62,832 units in the corresponding month last year, it added.

Ajanta Pharma rises on Q1 profit

Generic drugmaker Ajanta Pharma's shares have risen as much as 3.8 percent to ₹915, the biggest daily percentage gain since July 16.

The company has posted 8.5 percent jump in June-quarter profit to ₹115 crore ($16.64 million) and the revenue increased 19.7 percent to ₹612 crore.

It has registered an export sales up 25 percent, while U.S. generic sales have risen 67 percent.

Up to the last close, the stock had fallen 26 percent this year, while peer Procter & Gamble Health Ltd up 69 percent.

Rupee falls 41 paise to 69.20 versus USD in early trade

The rupee tumbled 41 paise to 69.20 against the United States (US) dollar in early trade on Thursday amid unabated foreign fund outflows and rising crude oil prices.

Forex traders strengthening of the greenback vis-a-vis other currencies overseas and cautious opening in domestic equities weighed on the local unit.

Broker's call: Sanofi India (Reduce)

CMP: ₹6,067

Target: ₹6,000

Sanofi India delivered results below our estimates in Q2 CY19. Sanofi reported Revenue growth almost in-line with industry growth of 9 per cent. Revenue for the quarter grew by 9.4 per cent y-o-y at ₹748 crore (Estimate: ₹752 crore). Read more here

Broker's call: Supreme Industries (Outperformer)

Supreme Industries is a plastic product manufacturer and the largest plastic processor in India, processing over 0.37 million MT annually. Company has four business verticals, i.e., plastic piping (55 per cent), packaging products (21 per cent), industrial products (16 per cent) and consumer products (7 per cent). SI has 22 manufacturing plants situated across India.  Read more here

Markets open: The equity indices on Thursday opened on a weak note following the Asian markets which were trading lower after the U.S. Federal Reserve delivered a 25-basis-point rate cut as expected but dashed hopes of a lengthy easing cycle.

Overnight, the Dow and the Nasdaq lost 1.2 percent each while the S&P 500 declined 1.1 percent. MSCI’s gauge of stocks across the globe slipped to a five-week low, said a Reuters report.

At 9.16 am, the Sensex is down 190.35 points at 37,290.77, while Nifty is trading lower at 11,060.20, down 57.80 point.

All the sectoral indices are trading in red, lead by media stocks.

Today's Pick - TVS Motor Company (₹367.6): Buy

Investors with a short-term perspective can consider buying the stock of TVS Motor Company at current levels. The stock took support at around ₹340 and bounced up gaining 6.6 per cent accompanied by above average volume on Wednesday. It has formed a bullish engulfing candlestick pattern in the daily chart which is a bullish reversal pattern. Also, the daily relative strength index is displaying positive divergence backing the trend reversal and has recovered from the oversold territory. Read more on the technicals here

Day Trading Guide for August 1, 2019

Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:

₹2251 • HDFC Bank

₹794 • Infosys

₹270 • ITC

₹138 • ONGC

₹1166 • Reliance Ind.

₹332 • SBI

₹2205 • TCS

11132 • Nifty 50 Futures

S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.

Asian stocks fall as Fed dampens bets on more rate cuts

A sell-off in U.S. stocks extended to Asia as markets opened after Chairman Jerome Powell dented hopes the Federal Reserve is poised to continue easing after delivering the first interest-rate cut in over a decade. Treasury yields ticked higher.

Shares in Japan, Australian and South Korea saw moderate declines after U.S. stocks closed off their lows. U.S. futures slid. Powell said the quarter-point cut amounted to a mid-term policy adjustment, fueling speculation the central bank is not necessarily at the start of an easing cycle. The S&P 500 had fallen as much as 1.8% intraday after the Fed chairman said the Fed hasnt ruled out further cuts. President Donald Trump said in a tweet Powell let us down with the size of the rate cut. The dollar held gains and oil declined.

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