Sensex closes firm, up 234 points at 39,131

 

Sensex, Nifty close firm

The Sensex and Nifty spurted up around 0.60 per cent in late trading on Tuesday. The Sensex closed at 39,131, up 234 points or 0.60 per cent, while the Nifty ended at 11,661, up 72 points or 0.63 per cent higher.

The top gainers on the Sensex were YES Bank, which shot up over 11 per cent, followed by Tata Motors that gained over 5 per cent, Sun Pharma, NTPC, both up over 2 per cent and PowerGrid, which gained 1.93 per cent by close.

Among the BSE sectoral indices, realty, oil and gas, consumer durables, power, utilities , healthcare, and industrials all gained over 1 per cent. The IT and technology indices were the only sectoral indices that closed in negative territory.

 

Benchmark indices rally in late session

The benchmark indices, the Sensex and Nifty, rallied in late session to notch up gains of around 0.6 per cent in late session on Tuesday.

The Sensex gained 214 points to trade at 39,111, while the Nifty spiked up to 11,655 or 66 points firmer.

YES Bank was the top gainer on the Sensex, rising over 9 per cent, while Tata Motors also held a firm tone, rising nearly 5 per cent during the session. Among the other scrips propping up the benchmark index were NTPC, PowerGrid, Tata Steel, Sun Pharma and Hindustan Unilever, all of which rose more than 1 per cent.

The laggards in the Sensex pack were TCS, M&M, HCL Tech, Tech Mahindra and Kotak Bank.

Among the BSE sectoral indices on the uptrend were realty, which was up 2 per cent, followed by consumer durables, oil and gas, power, utilities and capital goods, all of which gained over 1 per cent. The IT and technology indices were the only ones in negative territory.

 

 

Burberry shines as European shares edge higher

 

European stock markets crept higher on Tuesday as investors awaited the first flood of second quarter earnings releases, with London's FTSE 100 boosted by a first-quarter pick-up in sales for Burberry.

Shares in the British luxury brand surged 8.5 per cent, putting it on course for its best day in seven years, as investors cheered the first signs of results for new designs by creative chief Riccardo Tisci, part of a broader brand reboot. Click here to read in full the European share markets report .

Euro weakens as dollar holds ground despite Fed rate cut bets

 

The euro fell on Tuesday as investors waited for a sentiment reading of Germany's economy, although the prospect of more central bank easing starting with the Federal Reserve later this month kept currency moves limited.

The single currency stood at $1.1251 in early London trading, down slightly on the day.

Foreign exchange markets have been notably quiet in recent weeks, with investors focused on economic data releases to decide when and by how much central banks will seek to stimulate their economies. Click here to read the full global forex markets report .

Oil falls as US resumes Gulf of Mexico output

 

il prices dipped on Tuesday, extending losses from the previous session, as output in the US Gulf of Mexico resumed after Hurricane Barry and as US shale production is set to rise to a record.

Brent crude futures were down 4 cents at $66.44 a barrel by 00642 GMT. They fell 0.4 per cent overnight.

US West Texas Intermediate crude futures dropped by 13 cents, or 0.2 per cent, to $59.45 a barrel. The US benchmark fell about 1 per cent in the previous session. Click here to read in full the global oil markets report .

Asian shares creep higher as wary investors await US data

 

Most Asian stock markets rose on Tuesday, but gains were limited as investors awaited US retail sales data and corporate earnings to gauge the health of the world's biggest economy ahead of a likely US rate cut later this month.

European markets looked set for an equally cautious session, with the pan-region Euro Stoxx 50 futures down 0.14 per cent in early trade. Click here to read in full the Asian markets report .

Stage set for monsoon revival over Central India, adjoining peninsula

 

The land-based monsoon trough has retreated from the Himalayan foothills and settled back into its original alignment from North-West Rajasthan to North-East Bay of Bengal this (Tuesday) morning.

This sets the ground for revival of the monsoon over Central India and adjoining peninsula after lapsing into a weak phase over the past week with rains migrating to North and North-East India. Click here to read in full the weather report .

Cipla forms JV with Jiangsu Acebright for respiratory medicines in China

 

Homegrown pharma major Cipla on Tuesday said it has entered into a pact with Jiangsu Acebright Pharmaceutical Co Ltd to form a joint venture in China.

The agreement is between Chinese firm, Jiangsu Acebright, and Cipla’s European arm, Cipla EU, for a combined investment of $30 million, according to a company statement. Click here to read in full the report on Cipla tie-up with Chinese pharma company .

Sensex, Nifty steady, YES Bank surges 10%

The Sensex and Nifty cotinued to trade steady in the afternoon session on Tuesday.

The Sensex held gains of 121 points or 0.31 per cent at 39,018, while the Nifty traded at 11,628, up 40 points or 0.35 per cent firmer.

The YES Bank stock was the top gainer on the Sensex, surging over 10 per cent during the session. Tata Motors was also on a firm run, with gains of 4.82 per cent. NTPC, Hindustan Unilever and Tata Steel held gains of over 1 per cent.

On the other hand, TCS dropped 1.78 per cent, M&M 1.47 per cent, HCL Tech O.85 per cent, Kotak Bank 0.60 per cent and Tech Mahindra down 0.44 per cent.

Among the sectoral indices, realty, oil and gas and consumer durables propped up the index, gaining over 1 per cent.

The IT and technology indices, on the other hand, were the only notable losers during the session.

 

HDFC Bank terminates, de-lists GDRs from Luxembourg Stock Exchange

 

Private sector lender  HDFC Bank  on Tuesday said it has terminated and de-listed its global depository receipts (GDRs) from the Luxembourg Stock Exchange due to low trading volume.

”....Subsequent to July 15, 2019, the listing and admission to trading of the GDRs on the Luxembourg Stock Exchange will be cancelled,” HDFC Bank said in a regulatory filing. Click here to read the full report on HDFC Bank delists GDRs from Luxembourg exchange .

Nifty Call : Outlook stays positive above 11,600; buy in dips

 

The Sensex and the Nifty began the session on a flat note and immediately rose sharply and continued to trend upwards. The Asian markets are showing mixed cues, the Nikkei 225 is down 0.6 per cent to 21,550 levels, while the Hang Seng index has added 0.2 per cent to 28,619 levels.

Both the Sensex and the Nifty have advanced about 0.45 per cent. The market breadth of the Nifty index is biased towards advances. On the other hand, the India VIX, the volatility index has slumped 3 per cent to 11.61 levels. Click here to read in full the Nifty call report .

High Court quashes CRZ clearance to ₹14,000-cr Mumbai road project

 

The Bombay High Court on Tuesday quashed the CRZ clearances granted to the city civic body’s ambitious Rs 14,000-crore coastal road project.

The court’s ruling means the Brihanmumbai Municipal Corporation (BMC) cannot continue work on the 29.2 km-long project, proposed to connect Marine Drive area in south Mumbai to suburban Borivali in north Mumbai. Click here to read in full the report on HC quashes CRZ clearance to Mumbai road project .

 

Benchmark indices range-bound

The benchmark indices, the Sensex and Nifty, both traded in a band at mid-session on Tuesday.

While the Sensex held gains of 116 points or 0.30 per cent at 39,012, the Nifty was trading up 41 points or 0.36 per cent at 11,630.

The top gainers on the Sensex were Tata Motors, which was up over 4 per cent, while Hindustan Unilever, NTPC, ICICI Bank, YES Bank and ONGC were up over 1 per cent each. On the other hand, TCS, M&M, HCL Tech, Kotak Bank and HDFC Bank dropped lower during the session.

Among the sectoral indices, IT was the only index in negative territory. Consumer durables was up more than 1 per cent, while utilities gained 0.91 per cent.

On Monday, the 30-share index settled up 160.48 points or 0.41 per cent higher at 38,896.71. The broader NSE Nifty ended 35.85 points, or 0.31 per cent, up at 11,588.35.

DHFL shares bounce back; jump 6 per cent

 

Dewan Housing Finance Corporation Limited (DHFL)  stock on Tuesday rebounded after suffering a massive selloff in the previous day, and surged 6 per cent after the company said it was working with stakeholders and creditors to ensure resolution of liquidity issues, without any haircut to the lenders. Click here to read in full the DHFL share price movement report .

Why is India trying to kill off hedge funds?

 

India is killing off the one industry that can bring badly behaving tycoons into line while nudging savers away from an unproductive lust for gold.

That industry is domestic hedge funds, which have taken seven years to reach $6 billion in investment commitments from nothing. By contrast, equity investment in India by overseas financial investors is upward of $400 billion. Click here to read more on the dying breed of hedge funds in India .

 

Central bankers are sick of rescuing the world economy alone

 

Global central bankers are again in the driving seat when it comes to propping up the world economy, but many are demanding governments join them in the rescue effort.

Amid slowing global growth, the Federal Reserve, European Central Bank and perhaps even the Bank of Japan are all set to ease monetary policy in coming months. But with less room to act than in the past, their leaders are telling politicians they will need to act if a downturn takes hold. Click here to read the full story on central bankers sick of rescuing world economy alone .

Benchmark indices hold steady

The Sensex held steady near mid-session on Tuesday, after opening flat. The 30-share benchmark was at 39,031, up 134 points or 0.35 per cent higher on its overnight close.

The NSE Nifty was trading at 11,629. This represented a gain of 40 points or 0.35 per cent.

The top gainers on the Sensex were Tata Motors, which was up over 3 per cent, followed by NTPC, ICICI Bank, YES Bank and ONGC, all up over 1 per cent each.

TCS, which lost 1.75 per cent during the session, along with M&M, HCL Tech, Kotak Bank and Hero MotoCorp were the losers in the session.

Sterling sags on Brexit concerns, weighs on euro

 

The pound struggled near a six-month low against the dollar on Tuesday, hampered by persistent worries over Brexit that, in turn, weighed on the euro.

The dollar fought for traction against the yen as the prospect of a Federal Reserve interest rate cut later in the month continued to keep the greenback on the defensive. Click here to read in full the global forex market report .

Eros International Media falls after parent company posts Q4 loss

 

Shares of movie producer and distributor Eros International Media Ltd fall ~4.55 per cent after parent company Eros International PLC posted weak Q4 results.

Eros International, which owns a vast library of Bollywood movies and music, on Monday posted a quarterly loss due to an impairment charge and a rise in costs. Click here to read in full the share price report on Eros International Media .

Rupee opens 5 paise down at 68.59 versus USD

 

The rupee depreciated marginally by 5 paise to 68.59 against the United States (US) dollar in early trade on Tuesday as the country’s exports entered the negative zone after a gap of eight months.

At the interbank forex market, the rupee opened weak at 68.59 registering a decline of 5 paise over its last close. The local currency however pared the initial loss and was trading at 68.55 at 0945 hrs. Click here to read in full the rupee report .

Oil skids below $60 amid concerns about Chinese economy

 

Oil tumbled below $60 a barrel as a tropical storm that shut almost three-quarters of U.S. Gulf of Mexico production moved inland while China fuelled concerns about demand growth.

Futures closed 1.1% lower in New York, the biggest loss in almost two weeks. With Hurricane Barry now ashore and weakening, drillers have begun restaffing offshore installations in the Gulf. About 69% of crude output remained shuttered, the U.S. government said Monday, down from 73% over the weekend. Click here to read in full the oil markets report .

Spooked investors flee debt funds due to deteriorating credit quality

 

Investors are fleeing from India’s debt funds at the fastest pace in a year as wariness mounts amid widening cracks in the nation’s credit market.

Monthly net outflows from the fixed-income funds jumped to ₹1.7 lakh crore ($25 billion) in June, the most in at least a year, estimates provided by Morningstar Investment Adviser India show. The data include all types of debt funds that invest in corporate and government bonds of different maturities and that are sold to both individual and institutional buyers. Click here to read in full the report on investors fleeing debt funds .

Tata Metaliks hits near 2-1/2-year low as profit drops

 

Shares of Tata Metaliks Ltd fell as much as 6.8 per cent to Rs 541.8, their lowest since March 2017.

The pig iron manufacturer posted a nearly 35 per cent fall in June-quarter consolidated profit on Monday as ~10 per cent rise in raw material cost drove expenses higher.

The stock is on track for its third straight session of losses.

Up to last close, shares have fallen 6.3 per cent this year, while its peer JSW Steel is down 11.7 per cent in the same period.

NSE index may test resistance at 11,683

 

The NSE index is likely to test a resistance at 11,682.81. The level is identified as the 14.6 per cent Fibonacci projection level of the uptrend from the February 19 low to its June 3 high.

The index cuts above its 50-hour exponential moving average (EMA), which had acted as a resistance in Friday's trade. Click here to read in full the NSE index technicals report .

Ashok Leyland drops as weak demand forces temporary plant closure

Shares of Ashok Leyland  Ltd fall as much as 3.8 per cent to Rs 82.20, their lowest since June 20.

The automobile manufacturer on Monday said its Pantnagar plant will remain closed between July 16, 2019 and July 24,2019 owing to weak demand and outlook for industry.

The company's total sales for the month of June fell about 19% per cent.

About 1.6 million shares change hands in early trade.

Up to the last close, the shares of Ashok Leyland fell 16.6 per cent this year, while peer  Tata Motors  is down seven per cent in the same period.

Gold steady as investors eye US retail sales data

 

Gold prices held steady on Tuesday as investors awaited US retail sales data that could serve as an indicator of the strength of the world's largest economy amid lingering concerns over global economic slowdown.

Spot gold was mostly unchanged at $1,413.20 per ounce, as of 0306 GMT. US gold futures were up 0.1 per cent at $1,414.90 an ounce. Click here to read in full the gold report .

Sensex, Nifty trade firm

The Sensex spurted up 154 points or 0.40 per cent to quote at 39,051 in early trade on Tuesday. The Nifty also gained 47 points or 0.41 per cent to quote at 11,636.

The top gainers on the Sensex were ONGC, PowerGrid, NTPC, Tata Motors and SBI, while the laggards were TCS, HeroMotoCorp, M&M, HCLTEch and Tech Mahindra.

Among the BSE sectoral indices, the oil and gas, power, realty and utilites sectors gained more than 1 per cent, while IT and auto were the only two indices in negative territory.

On Monday, the 30-share index settled up 160.48 points or 0.41 per cent higher at 38,896.71. The broader NSE Nifty ended 35.85 points, or 0.31 per cent, up at 11,588.35.

According to an agency report, foreign institutional investors sold equities worth Rs 216.44 crore, while domestic institutional investors purchased shares to the tune of Rs 591.72 crore, provisional data available with stock exchanges showed on Monday.

The report, quoting Vinod Nair, Head of Research at Geojit Financial Services, said green shoots from earnings lifted the sentiment of the IT sector, while an easing in WPI inflation (June) to 2.02 per cent added some cheer in the market.

However, Q1 results announced so far have been mixed and going forward are expected to be subdued in nature, he added.

Elsewhere in Asia, the Shanghai Composite Index and the Nikkei were trading in the red, while the Hang Seng and Kospi rose in their respective early sessions.

Meanwhile, the Indian rupee was almost flat at 68.55 against the US dollar.

The global oil benchmark Brent crude futures were trading 0.12 per cent higher at 66.56 per barrel.

Asian stocks mixed on thin volume; treasuries steady

 

Asian stocks were mixed on Tuesday amid low volumes as investors looked to earnings and clues from policy makers for the next catalyst. Treasuries steadied.

Japanese shares dipped as traders returned from a holiday, while indexes of Hong Kong and Australian equities were flat and South Korea edged up. Chinese shares fell on volumes that were about 50 per cent below their recent average. The S&P 500 Index earlier ended flat at a record high with Citigroup Inc., the first giant U.S. bank to report results, little changed. Oil fell below $60 a barrel. Click here to read in full the Asian markets report .

S&P ends near flat as Citigroup results sink banks; Nasdaq hits new high

 

The benchmark S&P 500 index ended little changed on Monday after oscillating between positive and negative territory throughout the session after Citigroup Inc kicked off the earnings season with a mixed quarterly report. Click here to read in full the US markets report .

Manipal Hospitals set to buy Medanta for ₹6,000 crore

 

Barring a last-minute hitch, Manipal Hospitals is all set to acquire one of the leading hospital chains in the country, Medanta, for ₹5,500-6,000 crore with almost all the hurdles having been cleared for the takeover, including necessary due diligence of the healthcare major. Click here to read more on Manipal Hospitals to acquire Medanta .

DHFL: Haunted by a leaky roof and a shaky foundation

 

The stock of Dewan Housing Finance Ltd (DHFL), which has been in the eye of the NBFC/HFC storm over the past several months, took a sharp knock of nearly 30 per cent on Monday, post its March quarter results release (after months of delay). Aside from the company’s dismal performance — loss of ₹2,223 crore in the March quarter — the commentary by the management in the notes to account also spooked the market. Click here to read more on what ails DHFL .

What to Watch: Bonus, warrant issues may buoy Brigade

Shares of Brigade Enterprises will remain in focus, as its board on Monday approved a bonus issue in the ratio of 1:2. It also approved raising ₹115 crore from promoters and promoter group by allotting 42.75 lakh convertible warrants at ₹269 a share. Each warrant would be convertible into one equity share and the conversion can be exercised by warrant-holders within 18 months from the allotment date. The record date for the bonus issue will be declared later.

What to Watch: DCB Bank, HDFC AMC, MCX results eyed

Two private banks - DCB Bank and Federal Bank, and insurance major HDFC Asset Management are among the companies that will declare their quarterly results for the period ended June 2019 on Tuesday. The other companies are 5Paisa Capital, Agro Tech Foods, Jay Bharat Maruti, MCX, Network18 Media & Investments, Next Mediaworks, TV18 Broadcast and Vikas Multicap. Focus will be on HDFC Asset, which is ruling at an all-time high, at the bourses.

Allied Fin-Citi case could test segregation of brokers’ collateral and clients’ assets

Is there any system that clearing corporations follow to segregate client assets from those of collateral placed by the broker? The question has gained significance in the wake of the recent ₹400-crore clearing and settlement dispute involving counter-parties such as Citibank and Morgan Stanley, experts told  BusinessLine . Click here to read in full the Allied Fin-Citi case that could test segregation of brokers' collateral and clients' assets.

Opening bell

The benchmark indices, the BSE Sensex and the NSE Nifty, opened Tuesday's session flat. The Sensex was trading at 38,895, while the Nifty was at 11,590.

On Monday, the 30-share index settled up 160.48 points or 0.41 per cent higher at 38,896.71. The broader NSE Nifty ended 35.85 points, or 0.31 per cent, up at 11,588.35.

 

Day Trading Guide for July 16, 2019

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

₹2396 • HDFC Bank

 

₹779 • Infosys

 

₹270 • ITC

 

₹150 • ONGC

 

₹1275 • Reliance Ind.

 

₹359 • SBI

 

₹2145 • TCS

 

11579 • Nifty 50 Futures

 

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

Today's Pick: Ambuja Cements (₹219.6): Buy

Investors with a short-term horizon can buy the stock of Ambuja Cements at current levels. Following a rally in late May, the stock had encountered a key medium-term resistance at ₹240 and began to decline. The stock, which has been in a short-term downtrend since then, found support at ₹204 in mid-June. It took support from this base level in early July and changed direction triggered by positive divergence in the daily moving average convergence divergence indicator. Click here to read in full the Today's Pick on Ambuja Cements .