Sensex slips 87 points in choppy trade

Closing bell

Domestic equity benchmarks Sensex and Nifty ended on a negative note after a highly volatile session, dragged by losses in financial stocks. Investors were also cautious ahead of the release of key macroeconomic data, traders said.

After swinging 337 points during the day, the 30-share BSE Sensex settled 86.88 points or 0.22 per cent lower at 38,736.23. The index hit an intra-day low of 38,684.85 and a high of 38,684.85. Similarly, the broader NSE Nifty dropped 30.40 points, or 0.26 per cent, to 11,552.50. During the day, it touched a low of 11,538.60 and a high of 11,639.55.

Top losers in the Sensex pack included Bajaj Finance, ONGC, IndusInd Bank, PowerGrid, L&T, Axis Bank, NTPC, Bharti Airtel, HDFC, HDFC Bank and Kotak Mahindra Bank, falling up to 2.08 per cent. On the other hand, Vedanta, Sun Pharma, Tata Steel, Asian Paints, Hero MotoCorp and Yes Bank were among the gainers, rising up to 2.44 per cent.

Shares of Infosys ended 0.87 per cent higher ahead of the company’s quarterly results.

According to traders, investors were cautious ahead of the release of inflation and industrial production data. Market was also nervous about the ongoing trade talks between India and the US, they added. Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Nikkei and Kospi ended in the green. Equities in Europe were also trading higher in early deals.

On the currency front, the Indian rupee depreciated 13 paise to 68.57 against the US dollar (intra-day). The global oil benchmark Brent crude futures rose 0.89 per cent to USD 67.11 per barrel.  - PTI

Govt plans to raise ₹3.25 lakh cr through disinvestment

The Centre has plans to raise as much as ₹3.25 lakh crore ($47.4 billion) in the next five years by reducing its stakes in some large state-owned firms to 40 per cent, two senior government officials said, in the nation's biggest privatisation push in more than two decades. The plan will open up a steady stream of state companies to greater private investment, and target the kind of annual divestment revenue that will be crucial to meet fiscal deficit targets. Click here to read more on the government's divestment plans

India best placed to tap global bond markets

India’s low government external debt GDP ratio, strong balance of payments and fairly stable exchange rate will augur well for long-term foreign borrowing, according to a State Bank of India research report. Going by the international evidence, India is best placed to tap the sovereign bond market now. The report assessed that considering the yield differential between India’s 10-year (yr) Government security (G-sec) vis -a-vis the US 10-year G-sec, it is clearly possible that interest saving would be close to 3 per cent. Read more on the global bond markets here

Australia steps up sugar trade fight with India

Australia has intensified its sugar related dispute with India by formally asking World Trade Organisation (WTO) to set up a panel to probe if the world’s second-largest sugar producer was breaching its obligations, a media report said. In March, Australia was joined by Brazil to lodge a formal complaint against India with the WTO alleging that India’s continued sugar subsidies to farmers have led to a “glut” and “depressed” global prices. Australia along with Brazil and Guatemala joined hands to ask the WTO to set up the dispute panel to probe if India was breaching its obligations. Click here to read more on the trade dispute between Australia and India

European shares

The pan-European stocks benchmark was flat with auto stocks down 0.6 per cent. File Photo

European markets edged higher, lifted by financial and mining stocks, with uncertainty over a US-China trade deal limiting gains fuelled by dovish signals from the Federal Reserve this week. The pan-European STOXX 600 index up 0.2 per cent by 0855 GMT, lifted by a 1.5 per cent rise in basic resources stocks as China iron ore logged its best week since around mid-June. Banks rose 0.7 per cent. Read the European stock markets report here

Piramal sharply cuts short term borrowings

File Photo of Ajay Piramal, Chairman, Piramal Group.

Default by a large financial services player on its debt instruments has forced Piramal Enterprises to shift its borrowing mix to longer-term funding sources, and significantly reduce dependence on commercial papers. Piramal Enterprises chairman Ajay Piramal in his address to the shareholders in the FY19 annual report said the company continues to build resilience by further strengthening its liability and asset side. Click here to read more on Ajay Piramal's address to the shareholders in the annual report.

The stocks of Piramal Enterprises were trading 0.29 per cent lower at Rs 1,958.

Sensex, Nifty trade higher

The 30-share BSE index Sensex was trading higher at 38,964.55, up 141.44 points or 0.36 per cent led by the industry heavyweights. The 50-share NSE index Nifty was trading 34.65 points or 0.30 per cent higher at 11,617.55.

The top gainers in the Sensex pack were Tata Steel, Tata Motors, Vedanta, Hero MotoCorp and Sun Pharma while the laggards were L&T, Axis Bank, Bajaj Finance, Power Grid and Bharti Airtel. Among the sectoral indices, metal stocks emerged top gainer trading higher by 1.77 per cent, while the capital goods stock index was the top loser.

In the NSE index, the top stocks leading the positive pack were Tata Steel, Tata Motors, Vedanta, Hero MotoCorp and Sun Pharma while the scrips of Wipro, L&T, Axis Bank, BPCL and ONGC were the laggards.

Broker's call

Goldman Sachs

SpiceJet (Buy)

CMP: ₹120.05

Target: ₹270

Representative image of SpiceJet aircraft.

We believe a benign fuel environment, higher passenger yields, and lower costs should help SpiceJet’s profitability improve in the coming years (0.30 ₹/ASK (available seat kilometres) in FY21E versus -0.10 ₹/ASK in FY19).

Fifty-nine per cent of Spice Jet’s departures are outside the top-6 metros, and with greater focus on deploying capacity to non-metro routes with lower competition, we see improving yields leading to a 31 per cent revenue CAGR in FY19-22e. Here's our Broker's call on SpiceJet

Nifty Call

The CNX Nifty logo is displayed on a wall at the National Stock Exchange (NSE) in Mumbai, India, on Monday, May 19, 2014. Indian stock-index futures rose and rupee forwards strengthened as benchmark gauges advanced to record highs last week after the main opposition alliance's biggest election win in 30 years. Photographer: Dhiraj Singh/Bloomberg

The market breadth of the Nifty index is biased towards advances. The India VIX has slumped 2.2 per cent to 12.18 levels. The Nifty Mid and Small-cap indices are witnessing buying interest and have gained 0.7 per cent and 0.6 per cent respectively.

Following a flat open, the Nifty futures contract recorded an intra-day high at 11,597 and began to decline. Read our Nifty Call for July futures here

Ashok Leyland and Tata Motors to shut plants temporarily

The continuing slump in demand for commercial vehicles (CVs) is prompting top players  Tata Motors  and  Ashok Leyland  to temporarily shut their factories at Pantnagar, Uttarakhand, to avoid inventory build-up. Ashok Leyland had closed its factory for about a week in June stating that it was aligning production with sales requirements. Along with every other vehicle category, the CV segment has also been battling poor demand. Sales slowed in the second half of FY19 due to multiple factors that have continued into the current fiscal as well. Read more on the sales of Tata Motors and Ashok Leyland and its impact

The stocks of Tata Motors were trading higher by 3.06 per cent at Rs 161.70 and the scrips of Ashok Leyland were trading lower by 0.59 per cent at Rs 84.65. The auto index in the Sensex were trading 0.80 per cent higher at 17,398.28

Sensex zooms 137 points

The 30-share BSE index Senex jumped 137.07 points or 0.35 per cent to 38,943.77 and the broader index Nifty too is trading higher at 11,622.40, up 39.50 points or 0.34 per cent.

Industry heavy weights pushed the index higher. The top gainers in the Sensex pack were Tata Steel, Tata Motors, Sun Pharma, NTCP and Vedanta while the laggards were L&T, Axis Bank, Bharti Airtel, Bajaj Finance and ONGC.

The top gainers and losers in the NSE index were

Quess Corp surges

Shares of business services provider Quess Corp Ltd jump as much as 9.1 per cent to one-week high of ₹479.9. Amazon.com's investment arm will invest ₹510 million ($7.44 mln) in the firm. The company will issue 754,437 shares to Amazon.com NV Investment Holdings LLC at ₹676 per share and the investor will hold 0.51 per cent stake in Quess Corp.

Quess' stock marks sharpest intra-day jump since January 22. The stocks of Quess Corp were trading 12.35 per cent higher at Rs 494.50.

Asian LNG price steady

Prices for cargoes delivered in September are estimated to be about $4.70 per mmBtu. Representative image

Asian spot prices for liquefied natural gas (LNG) held steady this week, with traders looking for signs of potential demand ahead of winter amid ample supplies. Spot prices for August delivery to Northeast Asia <LNG-AS> are estimated to be about $4.40 per million British thermal units (mmBtu), up 10 cents from last week, trade sources said.

Prices for cargoes delivered in September are estimated to be about $4.70 per mmBtu. The weekly price in Asia rose mainly because of higher European gas hub prices, which jumped this week after an unplanned gas outage in Norway, Europe's second biggest gas supplier, and on higher oil prices. Click here to read more on the global LNG prices

Infosys shares up nearly 1 per cent

Infosys is set to announce Q1 results on July 12.

Shares of Infosys gained nearly one per cent in morning trade on the bourses ahead of the release of the June quarter results.

On the BSE, Infosys opened at ₹723.30, then gained further ground and touched a high of ₹726.95, up 0.80 per cent over its previous close. On the NSE, the stock opened at ₹722.50, then touched a high of ₹727.35, registering a rise of 0.81 per cent over its previous close. Read the stock activity of Infosys here

US markets

US stocks were propped up

The Dow and S&P 500 rose on Thursday to close at record highs as health insurers gained after the Trump administration scrapped a plan designed to rein in prescription drug prices, while financial shares climbed with bond yields.

A 5.5 per cent gain in UnitedHealth Group Inc helped the Dow close above 27,000 points for the first time. The S&P 500 traded above 3,000 for a second day in a row but again failed to close above that milestone, suggesting investor cautiousness. Read more on the US stock markets here

Sensex, Nifty up in choppy trade

The 30-share BSE index Sensex was trading 17.29 points or 0.04 per cent higher at 38,840.40. Likewise, the broader index Nifty was trading 5 points or 0.04 per cent higher at 11,587.90 in a choppy trade.

Industry heavyweights - Reliance, HDFC, Infosys and TCS were lending support to the BSE index. In the Sensex pack, the stocks of Sun Pharma, Tata Steel, NTPC, Hero MotoCorp and Vedanta emerged the top gainers while the stocks of Bharti Airtel, L&T, Axis Bank, Bajaj Finance and Hindustan Unilever were trading in red.

Among the sectoral indices, telecom stocks emerged top loser trading lower by 1.03 per cent.

In the NSE index, the top stocks lending support were Sun Pharma, Tata Steel, NTPC, Hero MotoCorp, and Titan and the laggards were Wipro, Bharti Airtel, L&T, BPCL and Axis Bank.

DEN Networks hits 2-month high

Shares of DEN Networks Ltd rose as much as 7.3 per cent to ₹67.5, their highest since May 20. Cable TV and broadband service provider posted June-quarter profit of ₹112.3 million ($1.64 mln), compared to loss of ₹307 million year ago. The total revenue jumped 15 per cent. The stocks of DEN Networks were trading 6.77 per cent high at Rs 67.

Gold and precious metals

Gold up nearly 0.6 per cent so far this week. File Photo

Gold prices rose on Friday and were on track to post a weekly gain, consolidating above $1,400 as renewed Sino-US trade tensions amid global growth jitters and prospects of an interest rate cut by the US Federal Reserve stoked safe-haven demand.

Spot gold was up 0.3 per cent at $1,407.69 per ounce as of 0426 GMT. Gold has risen nearly 0.6 per cent so far this week. US gold futures were up 0.2 per cent at $1,409.90 an ounce. Among other precious metals, silver rose 0.2 per cent to $15.14 per ounce, while platinum was steady at $820.50. Click here to read more on the gold and other precious metals prices

Commodities market

Oil prices rose on Friday

Oil prices rose as US oil producers in the Gulf of Mexico cut more than half their output in the face of a tropical storm and as tensions continued in West Asia.

Brent crude futures were up 37 cents, or 0.6 per cent, at $66.89 per barrel by 0115 GMT. The international benchmark settled down 0.7 per cent on Thursday after hitting its highest since May 30 at $67.52 a barrel. US West Texas Intermediate (WTI) crude futures were up 34 cents, or 0.6 per cent, at $60.54 a barrel. Read more on the commodities market report here

Rupee market

At the Interbank Foreign Exchange, the rupee opened at 68.48. File Photo

The rupee opened on a cautious note and fell 10 paise to 68.54 against the US dollar in early trade ahead of the release of key macro-economic data. Forex traders said the rupee is trading in a narrow range ahead of the release of retail inflation and factory output data. At the Interbank Foreign Exchange, the rupee opened at 68.48 then fell to 68.54 against the US dollar, showing a decline of 10 paise over its previous closing. More on the local currency market, read here

Shares subdued

The shares were trading flat, tracking subdued Asian peers, as investors stayed on the sidelines after concerns over US-China trade tensions resurfaced.

The NSE index was 0.01 per cent or 0.60 points lower at 11,582.30, while the BSE index was flat at 38,821.58.

US President Donald Trump said on Thursday China was not living up to promises it made on buying agricultural products from farmers in the United States. “US-China tensions are the variable which will continue to haunt investors worldwide,” Saurabh Jain, assistant vice-president research, SMC Global Securities, said. “Not much good can happen on the trade front between these two countries, with Trump unlikely to back down on his tariffs.”

However, expectations of an interest rate cut by the US Federal Reserve limited losses in the broader market. MSCI's broadest index of Asia-Pacific shares outside Japan inched 0.05 per cent lower.

Meanwhile, India and the United States will resume trade talks on Friday, with little sign of a compromise on a series of protectionist measures taken by both governments in recent months.

The country's IT index was trading up as much 0.52 per cent, with shares of IT services firm Infosys Ltd ticking up as much as 0.8 per cent ahead of its first-quarter results due later in the day.

Shares of InterGlobe Aviation Ltd was trading up as much as 2.55 per cent, reversing losses seen in the last two sessions after one of the co-founders of India's largest airline IndiGo alleged violation of corporate governance rules at the parent group.

Shares of KPR Mill Ltd fell as much as 6.21 per cent - its lowest since April 15. The textile manufacturer on Thursday became the first company to withdraw a buyback proposal after the government in the Union budget last week imposed an additional 20 per cent tax on buybacks by listed companies. - Reuters

KPR Mill hit 3-month low

Shares of KPR Mill Ltd fall as much as 6.2 per cent, their lowest since April 15. The textile manufacturer said on Thursday, it was withdrawing its buyback proposal. As of last close, KPR Mill shares were up 8.7 per cent, while peer Raymond Ltd was down 16.4 per cent this year.

The stocks of KPR Mill were trading 1.97 per cent lower at Rs 596.

Sensex, Nifty turn volatile

Domestic equity benchmarks BSE Sensex and NSE Nifty started on a choppy note ahead of inflation and factory output data releases.

After jumping over 100 points in opening trade, the 30-share index pared all gains to trade 9.85 points, or 0.03 per cent, lower at 38,813.26. Similarly, the broader Nifty fell 8.60 points, or 0.07 per cent, to 11,574.30.

In the previous session, the 30-share gauge settled 266.07 points or 0.69 per cent higher at 38,823.11. Similarly, the broader NSE Nifty climbed 84 points, or 0.73 per cent, to 11,582.90.

On a net basis, foreign institutional investors sold equities worth Rs 316.86 crore, while domestic institutional investors purchased shares to the tune of Rs 719.74 crore, provisional data available with stock exchanges showed on Thursday.

Top losers in the Sensex pack in early trade included Bharti Airtel, Tata Motors, ITC, L&T, HDFC Bank, Hero MotoCorp, Bajaj Finance, PowerGrid and Axis Bank, shedding up to 1.46 per cent. On the other hand, Sun Pharma, NTPC, Yes Bank, RIL, Tata Steel, TechM and HDFC rose up to 1.21 per cent. Shares of Infosys were trading marginally higher ahead of the company’s quarterly results, scheduled to be released later in the day.

According to traders, investors are cautious ahead of the release of inflation and industrial production data. Market was also nervous about the ongoing trade talks between India and the US, they added.

Reiterating that President Donald Trump and US Trade Representative Robert Lighthizer are frustrated with the lack of balance and reciprocity from India when it comes to trade and tariff, a top US Administration official said that the new round of discussion between the two countries is not open-ended and the US wants things to move quickly.

Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Nikkei and Kospi were trading on a positive note in their respective early sessions. Meanwhile, bourses on Wall Street too ended higher on Thursday.

Meanwhile, the Indian rupee depreciated 7 paise to 68.51 against the US dollar. The global oil benchmark Brent crude futures were trading 0.65 per cent higher at 66.95 per barrel. - PTI

Forex market

The dollar bounced back

The dollar was steady, having regained some traction against its peers after stronger-than-expected US inflation data tempered the prospect of an aggressive Federal Reserve interest rate cut later this month. The dollar was little changed at 108.390 yen after rebounding from a low of 107.860 plumbed on Thursday in response to dovish comments from Fed Chairman Jerome Powell, which had revived the chance of a 50 basis-point cut. Click here to read more on the forex market

Shares slip into red

After opening in green, the benchmark index Sensex slipped into red and was trading 38.71 points or 0.10 per cent lower at 38,784.24. Likewise, Nifty too was trading 11.15 points or 0.10 per cent lower at 11,571.75.

The Sensex pack was dragged down by bank and telecom stocks.

The top gainers lending support to the index were Sun Pharma, NTPC, Reliance, Hindustan Unilever and Yes Bank while the laggards were Bajaj Finance, Bharti Airtel, Tata Motors, Hero MotoCorp, and L&T.

Sectorally, the telecom sector index emerged top loser trading lower by 1.03 per cent.

In the broader index, the gainers stocks were Yes Bank, UPL, IndusInd Bank, Tata Steel and Titan while the major losers were Tata Motors, Infratel, Coal India, Hero MotoCorp and Kotak Mahindra Bank.

Global markets

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

Asian shares pulled back as worries over renewed Sino-US trade tensions weighed on sentiment ahead of the release of June trade data from China, though expectations of a Federal Reserve rate cut later this month kept losses in check. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.05 per cent in early deals, with Australian shares dipping 0.16 per cent and Japan's Nikkei stock index trimming 0.11 per cent. Read the global markets report here

Stocks in focus

Friday will be a big day for this results season, as IT bellwether Infosys and private lender IndusInd Bank will declare their financial results. Besides, actively-followed companies such as 3i Infotech, GNA Axles, Hathway Cable & Datacom, Infomedia Press, Karnataka Bank, Reliance Industrial Infrastructure, Sangam (India) and TRF will also announce their fiancial results for the period ended June 2019. Also, will Unitech finally announce its results after several postponements?

The board of directors of Tasty Bites Eatables will meet on Friday to consider a fund-raising proposal. In a notice to the exchanges, the company said it will consider a proposal to raise funds through issue of equity shares on preferential basis. Shareholders will closely monitor the quantum of funds to be raised, the number of shares to be allotted, the price of the issue, and the allottee details. Besides, the purpose of fund-raising will also be closely followed by investors.

The open offer for acquisition of about 7.13 crore shares of KPIT Technologies at ₹66.50 opens on Friday. The open offer was mandatory after KEL Investments had entered into an agreement to buy out the promoters. Earlier, the respective boards of erstwhile KPIT Tech, Birlasoft (India) and KPIT Engineering in 2018 had approved a scheme whereby Birlasoft was merged with KPIT Tech and the engineering business of KPIT Tech was demerged and retained the same name.

Opening bell

The 30-share BSE index Sensex opened 117.99 points higher at 38,941.10 against the previous close of 38,823.11. Similarly, the 50-share NSE index Nifty opened 21.9 points higher at 11,604.80 against the previous close of 11,582.90.

Day Trading Guide

₹2407 • HDFC Bank

₹720 • Infosys

₹275 • ITC

₹153 • ONGC

₹1281 • Reliance Ind.

₹363 • SBI

₹2101 • TCS

11582 • Nifty 50 Futures

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

Today's Pick

We recommend a buy in the stock of BEML at the current levels of Rs 918.5. The stock of BEML gained 7.7 per cent breaching the 21- as well as the 50-day moving averages on Thursday. Following a corrective decline from the upper boundary, the stock found support at around ₹785 in late June. Subsequently, the stock bounced up strongly accompanied by good volume. The stock is in a short-term uptrend, within the sideways movement. Read our stock recommendation and stock activity of BEML here

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