Sensex ends 157 points higher; metal, power stocks rally

Closing bell | Sensex ends 157 points higher; metal, power stocks rally

The BSE Sensex ended 157 points higher, It was driven by gains in metal, power and financial stocks ahead of June derivatives expiry.

Extending its gains for the second session, the 30-share index settled 157.14 points, or 0.40 per cent, higher at 39,592.08. The index hit an intra-day high of 39,674.22 and a low of 39,319.64.

The broader NSE Nifty too rose 51.10 points, or 0.43 per cent, to finish at 11,847.55. During the day, the index touched a high of 11,871.85 and a low of 11,757.55.

Vedanta was the biggest gainer in the Sensex pack, rising 4.40 per cent. PowerGrid, Sun Pharma, Yes Bank, Tata Steel, HDFC Bank, Bajaj Finance, ICICI Bank and Bajaj Auto too ended up to 4.12 per cent higher.

On the other hand, Infosys, IndusInd Bank, Tech Mahindra, Bharti Airtel, Maruti, TCS and HDFC were among the top losers, shedding up to 1.12 per cent.

Buying interest was seen in metal, power, healthcare, capital goods and financial counters ahead of the expiry of June futures and options (F&O) contracts scheduled for Thursday, traders said.

Domestic investors are also hoping for positive news on the trade front in the backdrop of US Secretary of State Mike Pompeo holding talks with Prime Minister Narendra Modi in New Delhi, traders added.

According to experts, equities witnessed gains after positive momentum was triggered in the domestic stock market on reports of swift monsoon progress in the country.

On the currency front, the Indian rupee was appreciated 22 paise to 69.13 against the US dollar intra-day.

Brent crude futures, the global oil benchmark, rose 1.17 per cent to USD 65.03 per barrel. Globally, while bourses in Shanghai, Hong Kong, Tokyo and Seoul ended on a mixed note, equity markets in Europe were trading in the green in early deals.

(Source: PTI)

Europe has the world’s longest trading day

In most of the trading day, shares change hands across multiple venues, from exchanges to dark pools. File Photo

At 8 1/2 hours, Europe has the world’s longest trading day. But only after it ends do markets come alive. In the five minutes after trading finishes at 4:30 pm in London, auctions across the continent set the closing prices tracked by billions of dollars.

Over the past three years, the percentage of total trading volume executed in this manner has swelled to 20 per cent from 12 per cent, compared with about 8 per cent in the US, according to Rosenblatt Securities.

Its all thanks to the boom in exchange-traded funds, which mostly trade at the close to track final prices.

Read more: Europe has the world’s longest trading day

July may not deliver normal rain but rest of 2019 will: Korean agency

A Korean agency has forecast that the rest of South-West monsoon and North-East monsoon to deliver a decent rainfall for India as whole. July, August and September likely deliver normal to above normal rain for most of the country except slight deficits over North Gujarat and coastal areas of Andhra Pradesh, Odisha and Bengal.

The forecast would come as a big relief for farmers as the June is running already in deficit. India Met Department is expected to soon come out with its own outlook for July, August and September.

Read: July may not deliver normal rain but rest of 2019 will: Korean agency

European stocks fall after Fed cools mood

European shares fell for the fourth straight session on Wednesday, as bets on an aggressive half-point cut in US interest rates next month collapsed following a more measured than expected message from Federal Reserve officials.

Fed Chair Jerome Powell said on Tuesday the central bank is ”insulated from short-term political pressures”, pushing back on pressure from President Donald Trump to cut interest rates and saying a cut next month is not locked in.

Markets still firmly expect the US central bank to ease policy but comments from Powell and others were enough to weaken bets on the decisive new support for growth that has driven stock markets 4 per cent higher this month.

Read: European stocks fall after Fed cools mood

Britannia Industries denies speculation over resignation of MD

FMCG major Britannia Industries dispelled speculations over the resignation of its Managing Director Varun Berry from the company. Britannia Industries said, Berry was re-appointed as the Managing Director for five years effectively from April 1, 2019, following his six years stint in the company from 2013. The stocks of Britannia were trading 1.85 per cent lower at Rs 2,754.20

News Analysis: Mindtree open offer

Mindtree

Investors of Mindtree have been offered an exit through an open offer at Rs 980 by L&T, which is the same price it bought shares from V.G. Siddhartha of Coffee Day Enterprises earlier this March. The offer price discounts Mindtree’s trailing earnings by 21.32 times. Investors in Mindtree are better off tendering their shares in this offer. Read our analysis on Mindtree's open offer

The stocks of Mindtree was trading 1.83 per cent lower at Rs 935.30

Sensex, Nifty rise as India-US talks underway

The 30-share BSE index Sensex was trading 89.84 points or 0.23 per cent higher at 29,524.78 led by bank stocks. The major scrips leading the positive pack were Yes Bank, Power Grid, Sun Pharma, Bajaj Finance and HDFC Bank while the stocks trading in red were IndusInd Bank, Infosys, Bharti Airtel, Tata Motors and Maruti.

Among the sectoral indices, the energy stocks emerged biggest gainer followed by Utilities stocks.

The 50-share NSE index Nifty was 38.35 points or 0.33 per cent higher at 11,834.65. The top gainers were PowerGrid, Sun Pharma, Adani Ports, Yes Bank and NTPC while the laggards were Britannia, Bharti Airtel, Infosys, IndusInd Bank and BPCL.

Nifty Call

The market breadth of the Nifty index is biased towards advances. The Nifty June month contract commenced the session with a gap-down open at 11,774. After recording an intra-day low at 11,767 the contract began to trend upwards. Traders can make use of dips to buy the contract as long as it trades above 11,810 levels. Read our Nifty Call for June futures here

Adani Power to acquire GMR Chhattisgarh Energy

Adani Power on Tuesday said it will acquire GMR Chhattisgarh Energy Ltd (GCEL) as the consortium of lenders has approved its resolution plan. Post the transaction, Adani Power Limited shall hold 100 per cent equity stake in GCEL. Read more on the acquisition of GMR Chhattisgarh Energy by Adani Power here

The stock of Adani Power was trading 0.79 per cent higher at Rs 50.90

Gold slides over 1%

Spot gold may test support at $1,404/oz.

Gold prices slipped more than 1 per cent, moving away from a six-year peak hit on Tuesday, as US Federal Reserve officials played down expectations of aggressive rate cuts, while investors locked in profits following a strong rally. Meanwhile, hurting bullion appeal, the dollar index rose 0.2 per cent moving away from multi-month lows. Click here to read more on the price movement of gold and other precious metals

Bitcoin tops $12,000 level

Bitcoin continued its torrid rally, surpassing the $12,000 level for the first time in almost a year and a half. The largest cryptocurrency surged about 8%, trading at $12,273.08 as of 1:41 p.m. in Tokyo.

Sensex, Nifty in green as US-India meeting begin

The 30-share BSE index Sensex was trading higher by 57.08 points or 0.14 per cent at 39,492.02 led by L&T and bank stocks.

The stocks supporting the index were Power Grid, NTPC, Sun Pharma, ICICI Bank and L&T while the laggards were Tata Steel, Bajaj Finance, HDFC, IndusInd Bank and Hindustan Unilever.

The 50-share NSE index Nifty was trading 21.25 points or 0.18 per cent at 11,817.70. The top gainers were Power Grid, Sun Pharma, Adani Ports, UPL and NTPC while the major losers were IBUL Housing Finance, Britannia, Bharti Airtel, BPCL and Hero MotoCorp.

India's gold demand

India is the world's second biggest consumer of gold after China.

India's gold demand could fall 10 per cent in 2019 from a year ago to the lowest level in three years as a rally in local prices to a record high dents retail purchases during a key festive season. Local gold prices hit a record ₹35,960 per 10 grams on Tuesday, having jumped more than 10 per cent over the past month. Read more on India's gold demand and price of gold

IFCI board okays exiting NSE

Long-term infrastructure term lender  IFCI  will exit the National Stock Exchange (NSE) by selling the remaining stake of over 2 per cent in the bourse. The stake sale in the NSE is part of IFCI’s initiative to exit non-core businesses. More on the stake sale of IFCI Ltd, read here

The stock of IFCI was trading 7.14 per cent higher at Rs 10.06 in the BSE index, while in the Nifty the stock was trading higher by 11.40 per cent at Rs 10.50.

Opinion on $5 trillion GDP dream

In the month since the Narendra Modi government returned to power with a thunderous majority, it has repeatedly given voice to an ambitious target to grow the economy to $5 trillion by 2024. Without supply-side reforms, it may be unrealisable, writes Venky Vembu. Read our opinion on Modi's governments' $5 trillion GDP dream

Power Grid hits near 13-month high

Power Grid hits near 13-month high.

Shares of Power Grid Corporation of India Ltd gain as much as 3.32 per cent to ₹208.3, highest since May 31, 2018. The stock breaks above a resistance at ₹205.55, the 23.6 per cent Fibonacci projection level of the uptrend from August 2, 2013 low to August 8, 2017 high. Click here to read more on the stock activity of Power Grid here

The stock of Power Grid was trading 2.90 per cent higher at Rs 207.40

Shares rise led by industry heavyweights

The 30-share BSE index Sensex jumped 114.13 points or 0.29 per cent to 39,549.07 led by the industry heavyweights.

The stocks leading the positive pack were Reliance, NTPC, Axis Bank, Tata Steel and PowerGrid while the scrips trading in red were Yes Bank, Asian Paints, IndusInd Bank, Tech Mahindra and Hindustan Unilever.

Among the sectoral indices, the Power stocks emerged the major gainer, followed by Utilities stock index.

Meanwhile, the broader index rose 21.35 points or 0.18 per cent to 11,817.80. The top gainers in the Nifty pack were Sun Pharma, PowerGrid, Adani Ports, NTPC and Yes Bank while the laggards were Britannia, IBUL Housing Finance, BPCL, IOC and HDFC.

DHFL defaults on Rs 225 crore unsecured commercial papers

Troubled Dewan Housing Finance (DHFL) on Tuesday said it has defaulted on unsecured commercial paper of ₹225 crore and it will be paid over the next few days. The payment was due on Tuesday. DHFL further said it is already in the process of selling down its loan assets to make good all its obligations.

The stock of DHFL was trading 1.46 per cent lower at Rs 74.30.

US stocks

All three major US stock indexes ended Tuesday in the red

Wall Street stock indexes fell on Tuesday, led by a sharp sell-off in technology shares, as simmering trade concerns and disappointing economic data sent buyers to the sidelines, while the Federal Reserve chairman pushed back on pressure from US President Donald Trump to cut interest rates. All three major US stock indexes ended the session in the red.Click here to read more on the US stock markets

NTPC stocks hit 3-month high

An aerial view NTPC Thermal Power Station. File Photo

Shares of NTPC Ltd gain as much as 2.5 per cent to ₹141.9, their highest since March 26. The stock breaks a resistance at ₹140.06, the 50 per cent Fibonacci projection level on the uptrend from February 13 low to March 26 high. More on the stock activity of NTPC, read here

The stocks of NTPC were trading 1.58 per cent higher at Rs 141.10

Shares rise slightly in thin trade

The shares inched higher in thin trade as investors stayed on the sidelines ahead of a key US-India meeting later in the day and Union Budget next week.

US Secretary of State Mike Pompeo has arrived in New Delhi for talks with leaders, where he is expected to tackle a host of delicate issues from trade to New Delhi's longstanding defence and energy ties to Russia and Iran.

Market participants also wait for clues from the 2019-20 budget which Finance Minister Nirmala Sitharaman will present on July 5. The government is under pressure to loosen the purse strings to follow through on election promises such as increased spending on roads and housing and tax cuts for companies and individuals.

“People have significant hopes from the upcoming budget and they want to see additional reforms, which I think the government is going to come up with,” said Sunil Sharma, chief investment officer, Sanctum Wealth Management.

“Investors are still a little concerned about slowdown in consumption. Some of it was related to election uncertainty and a lot of investors were on the sidelines, but much of that will now get resolved as we have a stable government. What really is critical that the government comes up with lower interest rates to aid consumption.”

The broader NSE index was up 13.80 points or 0.12 per cent at 11,810.25, while the benchmark BSE index was 0.14 per cent or 57.08 points higher at 39,492.02. Trading volume was very thin with only about 60 million shares changing hands in the first hour of trade in the NSE index, compared with the 30-day average of 383.6 million shares.

Industrials and financials accounted for most of the gains. Larsen & Toubro Ltd rose 1.9 per cent, Power Grid Corp of India climbed over 3 per cent, while Axis Bank added 1 per cent. Meanwhile, shares in Indian Oil Corp (IOC) and Bharat Petroleum Corp Ltd (BPCL) declined after crude oil prices ticked up more than 1 per cent to their highest in nearly a month.

In addition, IOC Chairman Sanjiv Singh told Reuters on Tuesday that he expected growth in India's demand for gasoline and jet fuel to slow slightly this year , as prospects for world trade deteriorate. IOC shares fell 1.3 per cent, while BPCL declined 1.8 per cent.

Among other losers, Dewan Housing Finance Corp Ltd (DHFL) plunged 9.1 per cent after the troubled mortgage lender said it had only been able to make 40 per cent payment on unsecured commercial papers due on Tuesday.

Meanwhile, Asian stocks retreated and the dollar inched up from three-month lows after U.S. Federal Reserve officials tempered expectations in the markets for aggressive monetary easing.

Commodities market

Oil prices rose more than 1 per cent

Oil prices rose more than 1 per cent to their highest in nearly a month as industry data showed US crude stockpiles fell more than expected, underpinning a market already buoyed by worries over a potential US-Iran conflict. US West Texas Intermediate (WTI) crude futures were at $58.98 per barrel, up 1.8 per cent from their last settlement. More on the commodities market report here

Rupee market

The rupee opened on a weak note and declined 12 paise to 69.48 against the US dollar in opening trade, amid simmering geopolitical tensions in the Middle East and higher crude oil prices. The rupee opened weak at 69.40 at the interbank forex market and then fell further to 69.48. Read more on the local currency market here

Pares early loses

Domestic equity benchmark BSE Sensex rose over 150 points in early trade tracking gains in index heavyweights ICICI Bank, L&T and RIL, amid heavy foreign fund inflow.

After swinging over 200 points within the first 15 minutes of trade, the 30-share index pared opening losses to trade 106.69 points, or 0.27 per cent, higher at 39,541.63. Similarly, the broader NSE Nifty was quoting 28.90 points, or 0.24 per cent, up at 11,825.35.

In the previous session on Tuesday, the BSE gauge settled 311.98 points, or 0.80 per cent, higher at 39,434.94; and the Nifty rose 96.80 points, or 0.83 per cent, to 11,796.45.

Top gainers in the Sensex pack included PowerGrid, NTPC, Sun Pharma, L&T, ICICI Bank, Axis Bank, Tata Motors, M&M, Vedanta and ONGC, rising up to 2.26 per cent. While, Tata Steel, Bajaj Finance, HUL, TCS, HDFC and IndusInd Bank fell up to 0.26 per cent.

According to experts, a positive momentum has been triggered in domestic stock market as monsoon swiftly progressed towards central and north India.

Despite weakness in global markets after US Fed chief Jerome Powell tempered expectations of aggressive rate cuts in the future, domestic investors were upbeat amid heavy foreign fund inflow ahead of the union budget next week as all eyes remain on what measure the current government will undertake to boost growth, traders said.

On a net basis, foreign institutional investors bought equities worth Rs 1,157.87 crore, and domestic institutional investors purchased shares to the tune of Rs 377.22 crore, provisional data available with stock exchanges showed Tuesday.

Meanwhile, Shanghai Composite Index, Hang Seng, Nikkei and Kospi were trading on a mixed note in their respective early sessions. On Wall Street, S&P500 and Nasdaq ended in the red on Tuesday.

On the currency front, the Indian rupee depreciated 10 paise to 69.46 against the US dollar. The global oil benchmark Brent crude futures rose 1.31 per cent to 65.12 per barrel. - PTI

Forex market

The dollar edged up from a three-month low, as investors dialled back expectations for aggressive US rate cuts next month but broader conviction the Federal Reserve will need to ease policy soon capped greenback gains. The dollar index against a basket of currencies stood at 96.176. Click here to read more on the forex market report

Sensex jumps 146 points in early trade

After opening in red, the 30-share BSE index surged 146.06 points or 0.37 per cent to 39,581 in the early trade led by the stocks of L&T and ICICI Bank.

The top gainers were PowerGrid, L&T, NTPC, Sun Pharma and ICICI Bank while the laggards were IndusInd Bank, Tata Steel, Bajaj Finance, HDFC and Hindustan Unilever. Sectorally, all the indexes were trading in the positive barring capital goods stock index. Energy stocks emerged the biggest gainer.

Similarly, the broader index Nifty rose 36.95 points or 0.31 per cent to 11,833.40. The stocks leading the positive pack were IndusInd Bank, Dr Reddy's, State Bank of India, Eicher Motors, and Tech Mahindra while the scrips trading in red were IBUL Housing Finance, BPCL, JSW Steel, Yes Bank and IOC.

Asian markets

Asian stocks retreated and the dollar inched up from three-month lows after Federal Reserve officials tempered expectations in the markets for aggressive monetary easing. The Shanghai Composite Index edged down 0.15 per cent and Hong Kong's Hang Seng lost 0.1 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan declined 0.2 per cent. Read more on the Asian markets report here

Stocks in focus

Shares of three companies will turn ex-bonus on Thursday. Avadh Sugar & Energy is rewarding its shareholders with 1:1 bonus; Magadh Sugar & Energy is offering four bonus shares for every 10 held in the company; and BSE-listed GG Engineering is issuing two bonus shares for every three held. Investors wishing to receive the bonus shares must buy these companies’ shares by Wednesday. The record date is June 30 for the sugar firms and June 29 for GG Engg.

The board of Godrej Properties on Tuesday announced opening of the qualified institutional placement (QIP) and fixed the floor price of the issue at ₹928 a share. Earlier, the company had received shareholders’ approval to raise an amount not exceeding ₹2,500 crore in one or more tranches, by issuance of securities through public issue or private placement or through any other permissible mode. The board will meet again on June 28 to fix the QIP price.

Kumar Mangat Pathak and Abhishek Pathak’s Panorama Studios Pvt Ltd, a subsidiary of Panorama Studios International, has joined hands with  PVR Pictures , the film arm of PVR to distribute films pan-India. At the onset, the companies together will distribute Panorama Studio’s upcoming films starting with “Batla House”", followed by “Section 375” and “Khuda Hafiz”, all slated for FY2019-20 release. Shares of PVR jumped 1.32 per cent at ₹1,623.70 on the BSE.

Opening bell

The 30-share BSE index Sensex opened lower by 55.81 points at 39,379.13 against the previous close of 39,434.94. While the 50-share NSE index Nifty opened 27.75 points lower at 11,768.70 against the previous close of 11,796.45.

Day Trading Guide

₹2428 • HDFC Bank

₹748 • Infosys

₹278 • ITC

₹166 • ONGC

₹1295 • Reliance Ind.

₹356 • SBI

₹2266 • TCS

11810 • Nifty 50 Futures

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

Today's Pick

We recommend a buy in the stock of Emami at the current levels of Rs 290.8. After marking a multi-year low at ₹246 on Monday, the stock bounced up from the intra-day low. It has potential to trend upwards and reach the price targets of ₹302.5 and ₹309 in the near term. Read our stock recommendation and stock activity of Emami here

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