Sensex closes up 165 points at 39,950, metal, oil and gas sector shares shine

Closing bell

The benchmark indices closed in the green on Tuesday. The Sensex was quoted at 39,950, up 165 points or 0.42 per cent firmer, while the Nifty ended at 11,965, up 42 points or 0.36 per cent firmer.

The top gainers on the Sensex were Tata Motors, YES Bank, IndusInd Bank, ONGC and Vedanta, while the laggards were Sun Pharma, M&M, Hindustan Unilever, L&T and HDFC.

Among the BSE sectoral indices, the metal index moved up 1.33 per cent, followed by the oil and gas (0.91%), banking (0.87%) and energy sector shares (0.77%).

European shares gain on Trump tariff relief

European shares rose slightly on Wednesday after five straight says of losses. File Photo

European shares gained ground on Tuesday, with Germany's carmakers outperforming, as risk appetite held firm after the US stepped back from imposing tariffs on Mexico.

The pan-European STOXX 600 climbed 0.62 per cent, on course for a sixth day of gains in the last seven, with Frankfurt's DAX racing up 1.2 per cent as German investors returned from a one-day holiday. Click here to read in full the European markets report .

Sensex spurts up

The Sensex spurted up 213 points or 0.54 per cent to quote at 39,997, just shy of the 40,000 level. The Nifty was at 11,979, up 56 points or 0.48 per cent higher.

Among the sectoral indices, the crude oil and natural gas sector shares jumped up 2.91 per cent, followed by steel (1.19%) and refineries (1.09%). The pharmaceuticals, telecom, infrastructure developers and FMCG sector shares declined.

The top gainers on the Sensex were YES Bank, Tata Motors, ONGC, IndusInd Bank and Vedanta, while Sun Pharma, M&M, Coal India, Bharti Airtel, L&T and Power Grid declined.

Gold holds steady as US issues fresh trade threat against China

Bullion lost more than 1 per cent in the previous session to an intra-day low of $1,324.50.

Gold held steady on Tuesday after posting its biggest one-day percentage fall in two months in the previous session, as Washington's fresh trade threats against China dented investor optimism spurred by a US-Mexico deal.

Spot gold was up 0.1 per cent at $1,328.83 per ounce as of 0551 GMT, while US gold futures rose 0.3 per cent to $1,332.90 an ounce. Click here to read in full the gold report .

Dollar off recent lows as bets for a Fed rate cut grow

The dollar held above a recent two-and-a-half-month low on Tuesday as bets on an interest rate cut by the Federal Reserve increased, although investors were wary of selling aggressively before a Group of 20 summit this month.

Markets are only pricing in about a 20 per cent chance of a rate cut in June, but they are pricing in about 100 per cent chance of a cut by July. A policy meeting is due next week. Click here to read in full the global forex market report .

Oil rises with financial markets

Oil prices rose on Tuesday in line with firmer financial markets and bolstered by expectations that producer group OPEC and its allies will keep withholding supply.

Front-month Brent crude futures were at $62.56 at 0707 GMT, up 27 cents, or 0.4 per cent, from Monday's close. US West Texas Intermediate (WTI) crude futures were at $53.75 per barrel, 49 cents, or 0.9 per cent, above their last settlement. Click here to read the full oil markets report .

Asian stocks lifted as China eases financing rules on local govt spending

Asian stocks gained on Tuesday, led by Chinese shares after Beijing eased financing rules to boost local government spending on public works, and bolstered by investor relief following a US decision to hold off import tariffs on Mexico.

Hopes that US interest rates will be cut as early as next week have also provided broader support. Click here to read in full the Asian share markets report .

Sensex, Nifty range-bound

The Sensex and Nifty traded in ranges in the afternoon session on Tuesday. The Sensex was quoting at 39,940, representing a gain of 155 points or 0.39 per cent, while the Nifty was at 11,960, up 37 points or 0.32 per cent firmer.

The top gainers on the Sensex were YES Bank, ONGC, VEDL, IndusInd Bank and HCL Tech, while the laggards were Sun Pharma, M&M, L&T, Hindustan Unilever, Power Grid and Coal India.

Nifty call: Buy on dips with fixed stop-loss at 11,950 levels

The CNX Nifty logo is displayed on a glass facade at the National Stock Exchange (NSE) in Mumbai, India, on Tuesday, Feb. 10, 2015. Prime Minister Narendra Modi conceded an overwhelming defeat in a local election in India's capital, his first setback at the polls since taking charge of Asia's third-biggest economy last year. Photographer: Dhiraj Singh/Bloomberg

Nifty 50 June futures (11,987)

Taking positive cues from the Asian markets, the Sensex and the Nifty began the session in the green, opening with an upward gap. After an initial decline, the key indices resumed the up-move. The Nikkei 225 has rallied 0.3 per cent to 21,204 and the Hang Seng index has advanced 0.8 per cent to 27,801 levels in today's session. Click here to read in full the Nifty call report .

Top gainers and losers on the Sensex

Sensex , Nifty extend gains

The benchmark indices made further gains by midsession on Tuesday. The Sensex was quoting at 39,901, up 116 points or 0.29 per cent, while the Nifty was trading at 11,953, up 31 points or 0.26 per cent higher.

The top gainers on the Sensex were ONGC, HCL Tech, YES Bank, VEDL and IndusInd Bank, while the laggards were Sun Pharma, M&M, Coal India, Hindustan Unilever and L&T.

IT, technology, telecom and metal sector shares made gains of over 0.70 per cent on the BSE, while realty sector shares were a drag.

Adani set to begin work on Australian coal mine

Gautam Adani, Chairman, Adani Group. File Photo

The Queensland government is set to sign off on the groundwater management plan for the Adani Group’s Carmichael coal mine project on Thursday, the final hurdle for the Indian conglomerate to begin work on the $2-billion project, after fighting environment groups for close to a decade. Click here to read in full the report on Adani set to begin work on Australian coal mine .

Reliance Group has serviced debt payment of over Rs 35,000 cr in 14 months: Anil Ambani

Anil Ambani (file photo)

Reliance Group Chairman Anil Ambani in a conference call said rumours have damaged the value of his company’s stocks.

Reassuring investors, Ambani clarified that the group had serviced debt payments of over Rs 35,000 crore in the last 14 months, from April 2018 to May 31, 2019. This included principle payments of Rs 25,000 crore and interest payments of Rs 11,000 crore, he said. Click here to read in full the report on Reliance Group's debt payment plans.

The nitty-gritty of tax-free bonds

Tax-free bonds available in the secondary market score over other debt products, including NCDs (non-convertible debentures) and debt mutual funds, on capital safety and returns.

A total of 193 series of tax-free bonds issued by 14 infrastructure finance companies over a span of FY12-16 are listed on the bourses. They are traded in the cash segment on the BSE and the NSE. Investors can buy and sell such listed tax-free bonds through their demat accounts. Click here to read the full report on the nitty-gritty of tax-free bonds .

Sensex, Nifty trade in ranges

The benchmark indices traded steady in positive territory in the mid-morning session on Tuesday. The Sensex was quoting at 39,879, up 94 points or 0.24 per cent, while the Nifty was at 11,941, up 18 points or 0.16 per cent.

The top gainers on the Sensex were ONGC, VEDL, HCL Tech, YES Bank and IndusInd Bank, while the laggards were Sun Pharma, M&M, Hindustan Unilever, Coal India and HDFC.

Among the BSE sectoral indices, the top gainers were telecom (up 0.79%), metal (0.75%), IT (0.63%), basic materials (0.48%) and consumer durables (0.45%). Realty sector shares weighed on the index, losing 0.58 per cent in the session.

ACB begins probe into allegations of corruption, nepotism against former J&K Bank chief

The Anti Corruption Bureau in Jammu and Kashmir has begun probing allegations of corruption and nepotism against former J&K Bank Chairman, Parwez Nengroo.

The Anti Corruption Bureau was established in J&K a few months ago. The new ACB Chief was appointed two months back according to official sources.

Investigations against Nengroo are in line with the move to plug corruption in the state. Click here to read the full report on ACB actions against former J&K Bank chief .

Indiabulls Housing falls after writ filed against chairman

The board of directors of IndiaBulls Housing Finance approved raising of ₹26,000 crore through non-convertible debentures.

Shares of mortgage lender Indiabulls Housing Finance Ltd fell as much as 8.58 per cent to Rs 671.25 after a writ was filed on Monday in the Supreme Court against Chairman Sameer Gehlaut for allegedly siphoning Rs 98,000 crore ($14.11 billion).

The company called the allegation “bizarre” as the total loans on its books are about Rs 90,000 crore, it said in a statement.

The mortgage lender claims that a racket of blackmailers had threatened to write complaints to various government departments alleging siphoning off Rs 55,000 crore by the company if they weren't paid Rs 10 crore.

The Indiabulls stock has hit its lowest since May 14. About 30 lakh shares changed hands, compared with the 30-day average of 32 lakh shares.

As of the last close, the stock is down 14.1% ($1 = 69.4450 Indian rupees). - Reuters

Sun Pharma at near 4-week low

Shares of Sun Pharmaceutical Industries Ltd fell about 4 per cent to Rs 386, their lowest since May 16.

The stock broke below a support at Rs 394.83, the 23.6 per cent Fibonacci projection level of the downtrend from its April 1 high to May 13 low (wave 1).

The breakdown suggests the stock may test the next support at Rs 374.43, the 38.2 per cent projection level in the near term.

The trend intensity (TI) indicator has risen to 20, suggesting a downtrend for the stock. The MACD is negative and below its signal line.

The stock is down 6.6 per cent this year, as of the last close, while the broader NSE Index is up 9.8 per cent in the same period. - Reuters

Dollar steady, but trade war fears curb appetite for risk

The dollar was largely steady against other major currencies on Tuesday, but investor appetite for risk was kept in check after US President Donald Trump renewed his tariff threats towards China.

Financial markets over the last year have been gripped by fears of escalating trade tensions between the world's two largest economies, stoking worries over the outlook for global growth.

Against a basket of six peers, the dollar edged up 0.02% to 96.781, having ended the previous session with a 0.2% gain. Click here to read the global forex markets report .

Rupee rises 21 paise to 69.44 vs $ in early trade

The rupee opened strong at 69.76 at the interbank forex market.

The rupee appreciated by 21 paise to 69.44 against the US dollar in opening trade on Tuesday, driven by a weakening of the greenback and a positive opening in domestic equities.

At the interbank foreign exchange market, the domestic unit opened at 69.49 against the dollar, then gained momentum and touched 69.44, up 21 paise over its previous close. The rupee had settled at 69.65 against the US dollar on Monday. Click here to read in full the rupee report .

How MNC funds have fared

Stocks of multi-national corporations are usually preferred due to their geographical diversification that insulates them from any slow-down in certain regions.

ICICI Prudential Mutual Fund recently unveiled its ICICI Prudential MNC Fund which seeks to monetise on multinational stocks both in India and global markets. Click here to read more on How MNC funds have fared .

Shopping for home loans? Hold on

Lending rates, which were on the rise last year, have been cooling off since the beginning of this year — indeed a welcome relief for borrowers. But the cuts have been few and little. This despite the 50 basis point reduction in policy repo rate by the RBI this year, up until the latest policy review last week, when the central bank cut rate by another 25 bps .

Tight liquidity thus far has limited banks’ ability to lower lending rates. If liquidity eases in the coming months, banks may speed up lending rate cuts; the RBI’s rate cut last week can also nudge banks to make more meaningful cuts in lending rates. Click here to read the full report on the home loan market .

Getting the best out of the land

AHIMSA (All Human Integrated Meritorious Social Awareness), established in 1981, is a Chennai-based not-for-profit organisation which provides services towards alleviating poverty and agricultural and industrial development in rural areas. Since 1996, the organisation has been working closely with farmers across States, especially in drought-affected regions, helping them improve crop yields and earn better returns.

The organisation initially started its operations in a small scale in Maharashtra by forming 20-member farmer clubs in villages and providing them with required inputs including fertilisers and crop management solutions through soil testing. Today, AHIMSA supports seven farmer-producer organisations (FPOs) with 1,000 members each across Tamil Nadu, Karnataka, Andhra Pradesh and Uttarakhand; over 7.45 lakh farmers have so far benefited through the NGO, it claims. Click here to read in full how to get the best out of the land .

Investica launches algo-backed fund

Investica, an online platform for mutual fund investment, has launched a first-of-its-kind algorithm-backed goal planning module for investors to achieve their goals through investment in mutual funds. Conceived in-house by Investica, this unique algorithm-backed fund selection engine aided by quantitative technique avoids the human element of subjectivity to generate a list of funds based on the inputs shared by the investors on their goals. Amit Singh, CEO, Investica, said the new feature is now available on the web and mobile platforms which enables investors to create their own life goals and allows them to allocate their investments accordingly.

Broker's call: Sadbhav Engineering (Hold)

Narnolia Financial

Sadbhav Engineering (Hold)

CMP: ₹259.05

Target: ₹281

Sadbhav Engineering ’s FY19 Q4 revenue was down by 7.5 per cent y-o-y to ₹1,022 crore due to slowdown in execution of

projects due to non availability of land.

EBIDTA grew by 2.2 per cent y-o-y with margin improved by 120 bps as the higher contribution from HAM projects. HAM has better margin than the EPC and BoT.

PAT was down by 59 per cent y-o-y to ₹29 crore due to higher tax of ₹53 crore. PAT margin for the quarter was 2.8 per cent compared to 6.3 per cent in QFY18. Click here to read in full the Broker's Call on Sadbhav Engg .

Sensex, Nifty weakly positive

The Sensex and Nifty traded in weakly positive territory on Tuesday morning. The Sensex was at 38,866, up 82 points or 0.21 per cent firmer. The Nifty was at 11,938, a gain of 16 points or 0.14 per cent on its overnight close.

The top gainers on the Sensex were ONGC, IndusInd Bank, Tata Motors, YES Bank and Vedanta, while the laggards were Sun Pharma, M&M, NTPC, Bharti Airtel and Asian Paints.

Among the BSE sectoral indices, the energy index was the top gainer, up 0.63 per cent, followed by the auto (up 0.49%), consumer durables, oil and gas (0.44%) and IT sectors (up 0.42%). Healthcare and utilities shares were a drag on the bourse.

PTI adds: Domestic indices extended gains as investors sentiment remained positive amid easing concerns over a global trade war after the US dropped its threat to impose tariffs on Mexico, traders said.

Bourses in China, Japan and Korea were trading on a positive note in their respective early sessions.

Strengthening rupee and foreign fund inflow too kept the positive momentum in the market going, traders added.

The rupee appreciated 16 paise to 69.49 against the US dollar.

In Monday’s session, foreign institutional investors bought equity worth Rs 216.20 crore, and domestic institutional investors purchased shares to the tune of Rs 170.62 crore, provisional data available with stock exchanges showed.

Meanwhile, the global oil benchmark Brent crude futures were trading 0.32 per cent higher at 62.49 per barrel.

What to Watch: Biocon to turn ex-bonus on Wednesday

Shares of  Biocon  will remain in focus, as they turn ex-bonus on Wednesday. That means, investors wishing to receive the bonus shares need to own the company’s shares by Tuesday. Biocon is rewarding its shareholders with a 1:1 bonus issue. For the fiscal 2018-19, the pharma major had reported a net profit of ₹70.50 crore and revenues of ₹2,884.70 crore. It may be recalled that it had rewarded its shareholders with 2:1 bonus and 1:1 bonus shares in 2017 and 2008, respectively.

What to Watch: Brooks Labs’ board to consider rights issue

The board of  Brooks Laboratories  will meet on Tuesday to consider fund-raising through a rights issue of equity shares. If approved, shareholders would eye the rights issue size, price and entitlement ratio. The record date to identify eligible shareholders to participate in the rights issue would also be a key factor. For fiscal 2019, it had reported a loss of ₹14.81 crore on revenues of ₹55.03 crore; for Q4 of FY19, its loss stood at ₹6.94 crore and revenues at ₹15.16 crore.

Cipla gets EIR from USFDA for Kurkumbh facility

Pharma major Cipla  on Monday said it has received the establishment inspection report (EIR) from the US health regulator after inspection of the Kurkumbh facility in Maharashtra. The Kurkumbh manufacturing facility was inspected by the United States Food and Drug Administration (USFDA) from March 11 to March 20, 2019, Cipla said. The company has received the EIR indicating closure of inspection, it added. Shares of Cipla gained 0.75 per cent at ₹553.70 on the BSE.

Asia stocks edge up on Mexico reprieve but Sino-US rift caps gains

Asian stocks made modest gains on Tuesday after the Trump administration shelved plans for tariffs against Mexico, lifting Wall Street, however, fresh US trade threats against China are expected to limit any major investor sentiment boost. Click here to read in full the Asian share markets report .

Two-wheeler players seek ‘practical’ EV switchover targets

Domestic auto majors on Monday urged the government to follow a practical approach in rolling out of electric vehicles, even as they cautioned that any unrealistic target will lead to collateral damage by way of job losses. Click here to read in full the report on 2-wheeler players seek 'practical' EV switchover targets .

Oil stables as market eyes ongoing supply cuts amid downturn

Oil prices stabilized on Tuesday on expectations that producer group OPEC and its allies will keep withholding supply to prevent prices from tumbling amid a broad economic slowdown which has started eating away at fuel demand growth. Click here to read in full the oil markets report .

SH Kelkar board approves buyback proposal

The board of  SH Kelkar and Company  on Monday approved a buyback proposal. The company will buy back up to 33 lakh fully paid-up equity shares of ₹10 each at ₹180 a share for an aggregate consideration not exceeding ₹59.40 crore. The buyback, for all shareholders as on the record date, would be on proportionate basis through the tender offer route. The board noted that promoter/promoter group of the company intend to tender such number of equity shares held by them in the company, as required for compliance with buyback regulations. Accordingly, promoter directors did not participate in the decision-making of the buyback resolution. Shares of SH Kelkar closed 2.95 per cent lower at ₹146.30 on the BSE.

What to Watch: Sterlite Tech: Revocation of pledged shares

Shares of  Sterlite Technologies  will remain in focus, as its promoters Twin Star Overseas has released the entire quantum of pledged shares. The company had pledged 20.94 crore shares (52.01 per cent of its total equity capital), with financial institutions, a release said. “...we have removed the entire pledge on STL, and remain committed to the highest level of corporate governance and our shareholding in the company,” said Anil Agarwal, its group Chairman.

Interoperability in settlement: Who wins and who loses?

Interoperability in settlement of equity and currency trades is all set to disrupt the current market ecosystem with the brokers having to select any one clearing corporation to settle all their trades, irrespective of the platform where the transaction took place. This has the potential to make settlement volumes shift from one clearing corporation to another, between the three players — NSE Clearing, the Indian Clearing Corporation (attached to the BSE) and the Metropolitan Clearing Corporation of India (attached to the MSEI).

Under the old system, trades executed on the NSE had to be cleared and settled only through NSE Clearing, those on the BSE were settled through Indian Clearing Corporation and transactions on Metropolitan Stock Exchange were cleared through Metropolitan Clearing Corporation of India. Brokers transacting on multiple exchanges had to maintain collateral at multiple clearing houses, in order to settle the trades. Click here to read in full the report on Interoperability in settlement .

Opening bell

The benchmark indices, the BSE Sensex and the NSE Nifty, opened the session in the green on Tuesday.

The Sensex was quoting at 39,897, up 112 points or 0.28 per cent. The Nifty was trading at 11,954, up 31 points or 0.26 per cent higher on its overnight close.

The Sensex closed Monday's session at 39,784, up 168 points or 0.43 per cent firmer, while the Nifty ended at 11,922, up 52 points or 0.44 per cent higher.

MF assets inch up to ₹26-lakh crore mark

The assets under management (AUM) of the mutual fund industry inched closer to the ₹26-lakh crore mark by registering a 5 per cent growth in May to ₹25.93-lakh crore, up from ₹24.78-lakh crore logged in April, on the back of ₹70,000-crore net inflow into liquid funds. The credit risk and medium duration funds witnessed outflow of ₹6,000 crore due to a series of defaults on interest payments by large corporates. Click here to read in full the report on MF assets inch up to Rs 26-lakh crore mark .

Day Trading Guide for June 11, 2019

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

₹2442 • HDFC Bank

₹753 • Infosys

₹279 • ITC

₹164 • ONGC

₹1318 • Reliance Ind.

₹343 • SBI

₹2231 • TCS

11933 • Nifty 50 Futures

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

Today's Pick: Fortis Healthcare (₹127.1): Buy

A Fortis hospital building is pictured in New Delhi. File Photo

Investors with a short-term view can consider buying the stock of Fortis Healthcare at current levels.

The stock gained almost 4 per cent accompanied by above average volume on Monday, breaching a key immediate resistance at ₹124. Following a short-term downtrend, from the key resistance level of ₹140 encountered in mid-April this year, the stock found support at ₹121 last week. Subsequently, the stock changed direction triggered by positive divergence in the daily relative strength index and the daily price rate of change indicator. Moreover, the key long-term support at around ₹120 has provided base for the stock recently. Click here to read in full Today's Pick on Fortis Healthcare .

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