Sensex ends 311 points higher; Nifty closes 97 points up

Closing bell

The Sensex ended 311.98 points or 0.80 per cent higher at 39,434.94 while the broader index Nifty closed 96.80 points or 0.83 per cent higher at 11,796.45.

Sensex and Nifty opened the session in red. The 30-share index hit a intra-day low at 38,946.04 before rallying over 335 points to close at 39,434.94 erasing the morning losses. The bank stocks lent support to the index.

The major gainers in the Sensex pack were Reliance, NTPC, Axis Bank, Tata Steel and PowerGrid while the laggards were Yes Bank, Asian Paints, IndusInd Bank, Tech Mahindra and TCS. Reliance Industries ended 2.7 per cent higher, while JSW Steel added 3.6 per cent.

Among the sectoral indices, the energy stocks emerged the biggest gainer followed by metal stocks. Capital goods and Industrials stocks alone ended in the negative.

The stocks that led the positive pack in Nifty were JSW Steel, BPCL, Reliance, NTPC and Axis Bank while the scrips ending in red were Yes Bank, Infratel, Asian Paints, IndusInd Bank and Tech Mahindra.

Fuel demand growth

Chairman of Indian Oil Corporation Sanjiv Singh speaks during the 20th Asia Oil & Gas Conference in Kuala Lumpur, Malaysia.

Growth in India's fuel demand is set to remain at 4-4.5 per cent this year, driven by consumption of gasoline and jet fuel in the transportation sector, IOC CEO Sanjiv Singh said. Gasoline and jet fuel demand are expected to rise by 7-8 per cent this year, while diesel consumption could increase by 3 per cent. More on the growth of fuel demand, read here

The oil and gas index was trading 1.39 per cent higher at 14,820.47

L&T closer to controlling Mindtree  

L&T is now closer to its goal of acquiring a 51 per cent stake in Mindtree after institutional investor Nalanda Capital is learnt to have sold its entire 10.61 per cent holding in the IT company to the infrastructure major. L&T is likely to be comfortable once it establishes or has visibility to be holding a 51 per cent shareholding in Mindtree. Read more on the L&T and Mindtree transaction here

The stock of L&T was trading lower by 0.42 per cent at Rs 1,534.85

Arvind Panagariya on Indian economy

Former NITI Aayog Vice-Chairman Arvind Panagariya (file photo).

Eminent economist Arvind Panagariya, who served as the first Vice Chairman of the NITI Aayog from January 2015 to August 2017, underscored that for trade to grow, the country has to be open. We have to return to becoming an export-led growth country, he added. Click here to read on Arvind Panagariya's views on Indian economy

Broker's Call

Reliance Securities

Engineers India (Buy)

CMP: ₹116.65

Target: ₹163

Engineers India’s order inflow increased by 175 per cent YoY to ₹58.9bn in FY19, as the company secured its largest ever order worth about ₹5,500 crore from HPCL petrochemical complex in Barmer (Rajasthan). The management expects ordering activity from IOCL’s Brownfield expansions, Panipath expansion and CPCL Nagapatinam in the medium-term. Read the Broker's Call on Engineers India here

RIL raises long-term loans

Oil-to-telecom conglomerate  Reliance Industries  said it has signed pacts with overseas lenders to avail long-term loans of $1.85 billion (about Rs 12,900 crore) to finance its capital expenditure. The fund raising comes amid reports of the company planning to infuse as much as Rs 20,000 crore in its telecom unit, Jio. Click here to read more on the fund raising through long-term loans by Reliance Industries

The stock of Reliance Industries was trading 2.28 per cent higher at Rs 1,291.50

Sensex surges 295 points

The 30-share BSE index Sensex surged 295.42 points or 0.76 per cent to 39,418.38 led by bank stocks.

The top stocks supporting the index were NTPC, Reliance, Axis Bank, Tata Steel and PowerGrid while the scrips trading in red were Yes Bank, L&T, Asian Paints, Hindustan Unilever and Tech Mahindra.

Sectorally, barring capital goods and Industrials, all the indexes were trading in the postivie pack.

 Meanwhile the 50-share NSE index Nifty zoomed 84.65 points or 0.72 per cent to 11,784.30. The top gainers were NTPC, BPCL, JSW Steel, Hindalco and Reliance while the laggards were Infratel, Yes Bank, L&T, Asian Paints and Hindustan Unilever.

European stocks

The pan-European STOXX 600 index fell 0.3 per cent. File Photo

European shares dipped in early trade, as investors shied away from riskier assets in the face of a new round of US sanctions against Iran and doubts over whether Washington and Beijing will make any progress on trade at a G20 summit this week. The pan-European STOXX 600 index fell 0.3 per cent. Read the European stock market report here

Is ONGC finally being recognised as promoter of HPCL?

A 15-month-long wait for India’s biggest oil and gas explorer and producer, ONGC, to be recognised as the promoter of state-run oil refiner HPCL, which it acquired in January 2018 through a PSU to PSU deal, took a small tentative step forward last week. Read more

The stock of ONGC was trading  0.64 per cent higher at Rs 166.30

Nifty Call

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

The market breadth of the Nifty index is biased towards advances. After a gap-down opening at 11,684, the Nifty June month contract marked an intra-day low at 11,666. Traders can buy in declines with a stop-loss at 11,715 levels. Read our Nifty Call for June futures here

Tyre makers shares rise

Shares of JK Tyre and Industries Ltd, CEAT Ltd , MRF Ltd and Apollo Tyres Ltd rise as much as between 3 per cent and 7.2 per cent on government’s impostion of duty on Chinese imports.

Sensex trades higher by over 100 points

The 30-share BSE index Sensex was trading 105.23 points or 0.27 per cent higher at 39,228.19 led by industry heavyweights Reliance and bank stocks.

The stocks leading the positive pack were NTPC, Reliance, PowerGrid, Mahindra & Mahindra and ONGC while the scrips trading in red were Yes Bank, L&T, Asian Paints, Sun Pharma and IndusInd Bank.

Similarly, the broader index Nifty was trading 31.85 points or 0.27 per cent higher at 11,731.50. The top gainers were BPCL, NTPC, JSW Steel, Hindalco and Britannia while the laggards were Infratel, Yes Bank, Zee Entertainment, L&T and IndusInd Bank

Is margin requirement for stock trading?

Margin requirement for futures and options in equity segment is highest

Is margin requirement for stock trading in India the highest compared to global peers? A research report submitted by the Association of National Exchanges Members of India (ANMI) says India is the most margin-heavy market globally. Click here to read more on the ANMI report on margin requirement for stock trading in India

Broker's Call

Anand Rathi

Finolex Cables (Buy)

CMP: ₹440.65

Target: ₹514

finolex

GST implementation has benefited the regulated segment, management says, as the industry has not grown in FY19 but large regulated operators’ growth has been healthy. Management expects the industry to grow at twice that of India’s GDP growth. Read the Broker's Call on Finolex Cables here

Sensex jumps to green

The 30-share BSE index Sensex erased the early losses and is trading 88.41 points or 0.23 per cent higher at 39,211.37 led by industry heavyweights.

The top gainers were NTPC, Mahindra & Mahindra, Tata Steel, Reliance and PowerGrid while the laggards were Yes Bank, L&T, HCL Technologies, Sun Pharma and Asian Paints.

Among the sectoral indices, metal stocks was top loser followed by oil & gas, realty, and energy

The broader index Nifty was also trading higher by 28.15 points or 0.24 per cent at 11,727.80. The scrips leading the positive pack were JSW Steel, PowerGrid, Mahindra & Mahindra, Dr Reddy's, and BPCL while the major losers were Zee Entertainment, Infratel, YES Bank, Sun Pharma and Eicher Motors.

Foreign investors exit IT stocks

Foreign investors are rapidly exiting IT stocks.

Since the beginning of FY20, Foreign Portfolio Investors (FPIs) have sold equities worth ₹3,800 crore in the ‘Software & Services’ sector. Per sector-wise FPI investment data, Software & Services witnessed the highest sell-off in the equity segment in May 2019, with net sales worth ₹3,226 crore. Read more on the FPIs exiting the IT stocks

Steel sector under pressure

Indian hot-rolled coil steel prices have corrected about 4% since January. Representative image

Indian domestic steel demand has softened in recent months, led by funding constraints in government-led infrastructure projects around general election, according to CLSA Research. An uptick is likely to happen only by December quarter. More on CLSA research on the steel sector, read here

Precious market

Bullions been on a tear this month

Gold has surged to the highest level in six years as fresh US sanctions on Iran added to uncertainty in global markets. Investors are also looking to the G-20 summit this weekend where Presidents Donald Trump and Xi Jinping are scheduled to meet to discuss trade, although US officials are downplaying expectations. Spot gold climbed as much as 1.4% to $1,439.21, the highest since May 2013. Click here to read more on the gold and other precious metals market

Shares struggle in thin trade

Shares were little changed in lacklustre trade as investors looked for cues from the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping, while monsoon rains' progress report failed to push up stocks.

President Trump views this week's meeting with President Jinping as a chance to see where Beijing stands on the two countries' trade war, and is “comfortable with any outcome” from the talks, a senior US official said on Monday.

Meanwhile, India and the United States are closing in on an industrial security agreement that will allow the transfer of defence technology, sources told Reuters on Monday, ahead of U.S. Secretary of State Mike Pompeo's talks in New Delhi this week to promote strategic ties. This deal comes as disputes over trade and protectionist moves have escalated between the two countries in recent months.

Indian monsoon rains have covered nearly half of the country and conditions are favourable for further advancement into the central and western parts this week, allaying some concerns that production will be badly hit.

However, the broader NSE index was flat at 11,695.95, while the benchmark BSE index was largely unchanged at 39,117.94. Only about 98 million shares were traded on the NSE index, compared with the 30-day average of over 385 million shares.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.4 per cent. “Markets are waiting for cues from important domestic triggers such as upcoming budget, where expectations are high for a pro-growth agenda, but also from some of the global events crude prices due to tensions in Middle East and G-20 summit,” said Gaurav Arora, Head of Region, Asia Pacific & Middle East at Greenwich Associates in Singapore.

The new Finance Minister Nirmala Sitharaman will present her first union budget on July 5, for the fiscal year ending March 2020.

JSW Steel and Vedanta were among the top gainers on the NSE index, up 1.8 per cent and 1.4 per cent, respectively. Bharti Infratel and Zee Entertainment Enterprises Ltd were among the biggest losers by percentage on the NSE index, down about 2 per cent each.

Among other losers, SBI Life Insurance Co Ltd posted its worst intraday loss since March 29, after promoter BNP Paribas Cardif offered to sell up to 25 million SBI Life shares at a discount. - Reuters

US stocks

The bellwether S&P 500 ended the session in the red. File Photo

The S&P 500 edged lower on Monday as losses by healthcare companies overshadowed gains in the technology sector. The Nasdaq slipped but tariff-sensitive industrials, headed up by Boeing Co, led the blue-chip Dow Jones Industrial Average to a nominal advance. Read the US stock markets report here

Currency market

Forex dealers said foreign fund inflows and selling of the American currency by exporters supported the rupee. File Photo

The rupee appreciated by 13 paise to 69.22 against the US dollar in opening trade, driven by easing crude oil prices and weakening of the US dollar in the overseas market. The rupee opened strong at 69.32 at the interbank forex market then gained further ground to touch 69.22 per dollar, displaying gains of 13 paise against the greenback. More on the local currency market, read here

Sensex trims early loss

The 30-share BSE index Sensex was trading 5.34 points or 0.01 per cent higher at 39,090.73 mainly dragged by industry heavyweights TCS and Infosys.

The top stocks dragging the index lower were Yes Bank, Sun Pharma, Asian Paints, HCL Technologies and ICICI Bank while the gainers were PowerGrid, NTPC, ONGC, Mahindra & Mahidra and Bharti Airtel.

Sectorally, Oil & gas were the biggest loser followed by consumer durables and energy stocks.

Similarly, the broader index Nifty was trading at 11,694, lower by 5.65 points or 0.05 per cent. While the laggards were Infratel, Zee Entertainment, HCL Technologies, UPL and Sun Pharma, the scrips leading the positive pack were BPCL, ONGC, Vedanta, JSW Steel and IOC.

Commodities market

US crude futures were down 3 cents at $57.87 a barrel

Oil prices were steady, supported by worries over a conflict between Iran and the US, but pressured by concerns about a potential decline in demand for crude. Benchmark Brent crude futures were up 3 cents at $64.89 a barrel by 0034 GMT. They fell 0.5 per cent on Monday.

US crude futures were down 3 cents at $57.87 a barrel. The US benchmark rose 0.8 per cent in the previous session. Click here to read more on the commodities market report

Forex market

The euro hit a three-month high of $1.14065 in early Asia trade. It has gained 2.0 per cent from a two-week low of $1.1181 touched a week ago as the dollar has lost steam. The dollar was on the defensive against the yen at 107.35 yen, a tad above Friday's five-month low of 107.045. Read the Forex market report here

IT drags stocks drag index down

Domestic equity benchmark BSE Sensex fell over 150 points in early trade tracking losses in IT stocks amid weak cues from other Asian markets.

The 30-share index was trading 49.47 points, or 0.13 per cent, lower at 39,073.49. Similarly, the broader NSE Nifty was quoting 6.65 points, or 0.06 per cent, down at 11,689. In the previous session, the BSE gauge settled 71.53 points, or 0.18 per cent, lower at 39,122.96, and the Nifty dropped 24.45 points, or 0.21 per cent, to 11,699.65.

Top losers in the Sensex pack included HCL Tech, Sun Pharma, Hero MotoCorp, Asian Paints, Tata Steel, TechM, TCS and IndusInd Bank, shedding up to 1.44 per cent. On the other hand, Vedanta, ONGC, PowerGrid, RIL, NTPC, Maruti and Kotak Bank, rising up to 1.31 per cent.

Domestic markets opened on a negative note following weak trade in other Asian equities, traders said. Shanghai Composite Index, Hang Seng, Nikkei and Kospi were trading significantly lower in their respective early sessions. On Wall Street, S&P500 and Nasdaq too ended in the red on Monday.

According to Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas, multiple factors such as slowing economic growth, rising crude oil prices due to US- Iran skirmish and delay in monsoons are keeping domestic investor sentiment tepid.

“Also, the upcoming union budget remains the key near term event in the market and the government efforts to revive the economy will be watched closely by market participants,” he added.

Meanwhile, on a net basis, foreign institutional investors bought equities worth Rs 207.33 crore, and domestic institutional investors purchased shares to the tune of Rs 984.43 crore, provisional data available with stock exchanges showed Monday.

The global oil benchmark Brent crude futures fell 0.93 per cent to 63.58 per barrel. On the currency front, the Indian rupee appreciated 6 paise at 69.28 against the US dollar. - PTI

Asian markets

People pass stock index tickers at the Singapore Exchange (SGX) premises (file photo)

Asian stocks were left adrift as expectations of more dovish talk from the Federal Reserve pushed down Treasury yields and the dollar, while lifting gold to six-year peaks. Early trade was very light with MSCI's broadest index of Asia-Pacific shares outside Japan up a minor 0.09 per cent. Read the Asian markets report here

Stocks in focus

BNP Paribas Cardif, one of the promoters of SBI Life Insurance Company , proposes to sell up to 2.50 crore shares through an offer-for-sale window at the exchanges on Tuesday (for non-retail investors) and on Wednesday (for retail investors). The floor price for the offer has been fixed at ₹650 a share. This represents 2.5 per cent of the equity share capital of SBI Life Insurance (on non-diluted basis). Shareholders will closely monitor the response to the issue.

Shares of Relaxo Footwears will turn ex-bonus on Wednesday. The footwear major had recommended one bonus share for each share held in the company (1:1), as on record date. The company has fixed June 27 as the RD to determine eligible shareholders entitled to receive the bonus shares. That means, investors wishing to receive the bonus shares should buy the shares of Relaxo Footwears by Tuesday. The company had earlier issued 1:1 bonus in 2015 and 2000.

Larsen and Toubro plans to sell up to two lakh shares, or 0.19 per cent, of the total paid-up equity capital of L&T Technology Services on June 25 (for non-retail investors only) and on June 26 (for retail investors and non-retail investors who choose to carry forward their unallotted bids). The floor price is ₹1,650 a share. Currently, promoters hold 78.88 per cent stake in L&T Technology. This move will help them meet SEBI’s minimum public shareholding norm.

Opening bell

The 30-share BSE index Sensex opened 8.98 points lower at 39,122.96 against the previous close of 39,131.94. The 50-share NSE index Nifty opened 45.7 points lower at 11,653.95 against the previous close of 11,699.65

Day Trading Guide

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

₹2416 • HDFC Bank

₹745 • Infosys

₹276 • ITC

₹165 • ONGC

₹1262 • Reliance Ind.

₹353 • SBI

₹2275 • TCS

11717 • Nifty 50 Futures

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

Today's Pick

D-Link India: Buy

We recommend a buy in the stock of D-Link India at the current levels of Rs 87.1. Since taking support in the band between ₹65 and ₹68 in mid-February, the stock has been in medium-term uptrend. The daily relative strength index has entered the neutral region from the bearish zone. Read our stock recommendation and stock activity of D-Link India here