Markets: Sensex ends weakly negative, down 48 points at 37,982

Closing bell

The benchmark indices, the BSE Sensex and the NSE Nifty, ended Tuesday's session weakly negative.

The Sensex closed at 37,982, down 48 points or 0.13 per cent, while the Nifty ended at 11,331, down 15 points or 0.13 per cent.

The top gainers on the Sensex were PowerGrid, Kotak Bank, HeroMotoCorp, ITC and Asian Paints, while the laggards were SBI, HDFC, Bajaj Auto, HDFC Bank and Tata Steel.

The FMCG, utilities, power and realty sector shares gained 0.80-1.25 per cent, propping up the 30-share index, while the auto and energy sector shares dropped lower during the session.

Gold prices slip on stronger dollar, profit-taking

SPDR Gold Holdings rise 0.6 per cent on Monday.

Gold prices dipped on Tuesday as the dollar strengthened and some investors locked in profits ahead of the US Federal Reserve meeting next week.

Spot gold was down 0.5 per cent at $1,417.41 per ounce, as of 0730 GMT. US gold futures slipped 0.6 per cent to $1,417.90 an ounce. Click here to read in full the gold markets report .

Sensex, Nifty fall back into the red

The benchmark indices, the BSE Sensex and the NSE Nifty, fell back into the red in late trading on Tuesday.

The Sensex was trading at 37,951, down 79 points or 0.21 per cent lower ahead of the close, while the Nifty slipped 24 points or 0.21 per cent to 11,321.

The top gainers on the Sensex were Kotak Bank, Power Grid, HeroMotoCorp, ITC and Asian Paints, while the laggards were HDFC, SBI, HDFC Bank, Bajaj Auto and Tata Steel.

FMCG, utilities, consumer durables and power sector shares propped up the 30-share benchmark, while the finance, metals, oil and gas and healthcare sector shares dropped lower during the session.

Upbeat earnings lift European shares, autos zoom

File Photo

European shares were set to rise for a third straight session on Tuesday, tracking rises on Wall Street and in Asia, with auto stocks leading the charge.

Hopes that the European Central Bank will cut interest rates on Thursday by 10 basis points to boost economic growth also fed into the positive sentiment. Some expectations still remain that the bank may set the stage for a September cut.

The latest round of corporate results from Swiss bank UBS, Banco Santander and Apple supplier AMS were positive, and the pan-European stocks benchmark STOXX 600 rose 0.4 per cent by 0824 GMT. Click here to read in full the European stock markets report .

US debt deal hoists dollar to a two-week high; pound sags

The dollar edged to a two-week high versus its rivals on Tuesday after US President Donald Trump and congressional leaders reached a deal on Monday on a two-year extension of the debt limit, dousing fears of a government default later this year.

The greenback rose 0.24 per cent versus a basket of its rivals to 97.47, its highest level since July 10. Click here to read in full the global forex markets report .

Oil rises on West Asia tensions, weak demand outlook caps gains

Oil prices edged up on Tuesday on concerns about possible supply disruptions in West Asia, but a weaker demand outlook kept a lid on gains, helped by a vow by the International Energy Agency (IEA) to keep global markets adequately supplied.

Brent crude futures climbed 29 cents, or 0.5 per cent, to $63.55 a barrel by 0643 GMT. The international benchmark rose more than 1 per cent in the previous session, following Iran's seizure of a British tanker last week that stoked fears of supply disruptions from the energy-rich Gulf. Click here to read more on the global oil markets .

ECB, Fed rate cut hopes lift stocks, sterling sags

Expectations that the European Central Bank and Federal Reserve will cut interest rates boosted stocks globally, while the pound sagged on worries that likely new prime minister Boris Johnson would lead Britain into a no-deal exit from the European Union.

In early European trade, the pan-region Euro Stoxx 50 futures rose 0.46 per cent, while the German DAX futures climbed 0.57 per cent and FTSE futures 0.40 per cent.

In Asia, Japan's Nikkei rose 0.95 per cent, while MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.04 per cent. The Shanghai Composite Index edged up 0.15 per cent. Australian stocks added 0.4 per cent and South Korea's KOSPI gained 0.45 per cent. Click here to read in full the Asian markets report .

Benchmark indices spurt up

After spending most of the morning session in a narrow band, the BSE Sensex and the NSE Nifty spurted up about a quarter percentage in the afternoon session.

The Sensex was quoting at 38,123, up 92 points or 0.24 per cent firmer, while the Nifty gained 25 points or 0.23 per cent to trade at 11,371.

The top gainers on the Sensex were Kotak Bank, Power Grid, Asian Paints, ITC and Infosys, while the laggards were HDFC, SBI, HDFC Bank, VEdanta and Bajaj Auto.

COnsumer durables, utilities, FMCG, pwer, IT and technology shares propped up the BSE index, rising between 0.75 and 1.3 per cent. On the other hand, metals, auto and healthcare shares dropped upto 0.70 per cent.

Nifty call: Go long on strong rally above 11,375, with fixed stop-loss

After a flat open, the Sensex and the Nifty moved sideways in a narrow range. The Asian markets are trading in positive territory, the Nikkei 225 is up almost 1 per cent at 21,620, and the Hang Seng index added 0.3 per cent to 28,456 levels.

The market breadth of the Nifty index is marginally biased towards advances. The India VIX volatility index has gained 2.4 per cent to 13.3. The Nifty small cap index has advanced 0.4 per cent, while the Nifty mid cap index has slumped 0.3 per cent, witnessing selling interest. The Nifty PSU Bank continues to be under selling pressure and has declined 1.4 per cent. The Nifty IT and FMCG sectors have gained 0.8 per cent and 0.7 per cent respectively. Click here to read in full the Nifty call report .

DHFL’s auditors raise several red flags

Dewan Housing Finance Limited (DHFL), which took a sharp knock, post its March quarter results, owing to several unsettling commentary by the management in the notes to account, is likely to tank further, as auditors raise several red flags around the reported results.

While stating that they were unable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion, the auditors put out several qualifications and disclaimers. Importantly, the auditors have raised concerns over the ability of the company to continue as a going concern. Click here to read more on DHFL auditors raise several red flags .

Sterling on back foot as investors worry about no-deal Brexit

Sterling was on the back foot on Tuesday as investors worried Boris Johnson, the frontrunner to become the UK's next prime minister, would trigger a “hard Brexit” from the European Union, widely seen as a major risk for the British economy.

The euro traded near session lows due to growing expectations European Central Bank President Mario Draghi will signal a rate cut in September at a policy meeting later this week to keep inflation expectations on track. Cick here to read more on the global forex markets .

Gold prices slip on dollar strength, profit-taking

SPDR Gold Holdings rise 0.6 per cent on Monday.

Gold prices fell on Tuesday as the dollar strengthened and some investors locked in profits ahead of the US Federal Reserve meeting next week. Spot gold was down 0.5 per cent at $1,417.80 per ounce, as of 0402 GMT. US gold futures dipped 0.6 per cent to $1,418.40 an ounce.

“Last week, we had lot of talks by the Federal Reserve on rate cut, market consensus was bit overwhelmingly and pushed prices way far,” said Benjamin Lu, analyst, Phillip Futures. “Expect gold to trade bit lower but hold above $1,400 level as consensus are still towards a rate cut.” Click here to read in full the gold report .

Oil prices ease as traders weigh West Asia tensions, demand

Oil prices inched lower on Tuesday as the International Energy Agency (IEA) said it would act quickly if needed to keep the market supplied amid tensions in the West Asia and traders eyed a weaker demand outlook.

Brent crude futures slipped 2 cents to $63.24 a barrel by 0121 GMT. The international benchmark rose more than 1% in the previous session, following Iran's seizure of a British tanker last week that stoked fears of supply disruptions from the energy-rich Gulf. Click here to read more on the global oil markets .

Benchmark indices flat at mid-session

The Sensex and Nifty were flat at mid-session on Tuesday. The Sensex was quoting at 38,046, up 14 points, while the Nifty was at 11,351, up 4 points.

PowerGrid led the Sensex pack, with gains of 2 per cent. Other gainers in the session included Kotak Bank (1.59 per cent), Infosys (1.52 per cent), ITC (1.49 per cent) and Asian Paints (1.46 per cent). The laggards were led by HDFC (down 2 per cent), HDFC Bank (1.60 per cent), Bajaj Auto (1.50 per cent), Tata Steel and SBI (1.03 per cent).

Utilities, realty, power, consumer durables, IT and FMCG shares gained around 1 per cent to prop up the BSE index. On the other hand, finance and banking sector shares weighed on the index.

Rana Kapoor and Morgan Credits pledge YES Bank shares

Burgeoning problem YES Bank had identified Rs. 10,000 crore in stressed accounts in the realty, infrastructure, media and entertainment sectors in the March quarter. The stressed accounts rose to Rs. 29,470 crore in the June quarter

YES Bank co-founder and promoter, Rana Kapoor, and promoter entity, Morgan Credits (MCPL), have pledged 7.34 per cent stake in the private sector lender.

These shares have been pledged in favour of Milestone Trusteeship Services Pvt Ltd, the debenture trustee for the benefit of the holders of debentures issued by MCPL, it said in a regulatory filing.

Kapoor has pledged his entire 4.31 per cent stake in YES Bank, amounting to 10 crore shares. MCPL also pledged 3.03 per cent of the total equity, which equals 7.02 crore shares. _ Our Bureau

TVS Motor hits over 2-1/2-year low on Q1 profit slide

Venu Srinivasan, CMD, TVS Motor Company

TVS Motor Co Ltd fell as much as 5 per cent to Rs 360.80, the lowest since January 3, 2017.

The auto maker on Monday posted a 5.6 per cent drop in June-quarter consolidated net profit to Rs 146 crore ($21.15 million); down 24 per cent sequentially. Total expenses jumped 9 per cent.

Overall, two-wheeler sales, including exports, fell 1 per cent year-on-year, despite an industry decline of 9.7 per cent.

Around 5.2 million shares changed hands, compared with the 30-day average of about 1.4 million shares.

Up to last close, the stock had fallen 33.5 per cent this year, while Bajaj Auto Ltd was down 6 per cent during the same period ($1 = 69.0230 Indian rupees)

NSE index neutral in 11,301-11,391 range: Technicals

The NSE index looks neutral in the 11,301.42 to 11,390.99 range and a break may give it further direction.

These levels are identified as the 38.2 per cent Fibonacci retracement level of the uptrend from the October 26, 2018 low to the June 3, 2019 high, and the 123.6 per cent Fibonacci projection level of the downtrend from the June 3 high to the June 19 low.

A break above 11,390.99 may lead to a further rise in the range of 11,503.78 and 11,607.8.

A break below 11,301.42, though, will also lead to a break-down of the 200-day exponential moving average, which is seen as a bearish sign from the medium- to long-term perspective.

How the directive on long-term motor insurance is impacting ICICI Lombard

A conscious call to reduce exposure to crop business, continued focus on profitable segments and diversified product mix has kept ICICI Lombard’s June quarter performance in good stead, despite the overhang of long-term motor insurance policies. While the general insurer’s GDPI — Gross Direct Premium Income, declined by 7.6 per cent YoY in the latest June quartere, excluding the crop segment, the growth in GDPI was a healthy 17.7 per cent — higher than the industry growth of 13.6 per cent. Sanguine growth in other segments have aided growth. Click here to read more on how directive on long-term motor insurance is impacting ICICI Lombard .

What to Watch: L&T, HUL, HDFC Life, SBI Life results eyed

Over two dozen companies will declare April-June 2019 quarter results on Tuesday. Among them are Asian Hotels, Control Print, Crisil, DCM Shriram, Everest Industries, GE Power, HDFC Life, HT Media, Hindustan Unilever, JK Paper, Jyothy Labs, Kajaria Ceramics, L&T, Linde India, M&M Financial, NIIT Tech, Nucleus Software, Oriental Hotels, Poddar Pigments, Ponni Sugars, Praj Ind, SBI Life, Schaeffler, SKF India, Shanthi Gears, Sundram Clayton, Torrent Pharma and Zee Entertainment.

Rupee slips 13 paise to 69.05 vs $ in early trade

The rupee opened on a weak note and declined by 13 paise to 69.05 against the US dollar in opening trade on Tuesday, amid sustained foreign fund outflows and rising crude oil prices.

Forex traders said, strengthening of the US dollar vis-a-vis other currencies overseas maintained pressure on the Indian rupee. Click here to read in full the rupee report .

Policy easing hopes prop up global stocks, pound sags as Britain eyes new PM

Expectations of policy easing by major central banks such as the Federal Reserve propped up global stocks on Tuesday, while the pound sagged as Britain braced for a new prime minister who could pave the way for a no-deal exit from the European Union.

MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.02%. Japan's Nikkei rose 0.25%. Australian stocks added 0.15% and South Korea's KOSPI gained 0.2%. Click here to read in full the Asian markets report .

What to Watch: Alphageo (India) bags order in new segment

Alphageo (India) has received an initial contract for carrying out gravity, magnetic and resistivity survey for manganese ore in Rengali block, Odisha, for a contract valuef at ₹0.72 crore (exclusive of taxes) from the Mineral Exploration Corporation. With the receipt of this order, the company is diversifying into the mineral exploration segment, as this would open up new avenues and benefit it in the long run. Shareholders will closely monitor the execution and order flows.

Coromandel International hits over 9-month low on weak results, monsoon

Shares of Coromandel International Ltd fell as much as 5.1 per cent to Rs 360.1.

The stock is at its lowest since October 8, 2018. The company, a Murugappa group company, posted a 31 per cent fall in consolidated net profit to Rs 62.43 lakh ($9.04 million). Revenue fell 15.7 per cent.

“We experienced a challenging quarter as the late arrival of the monsoon, deficit rains and consequent lower crop sowing delayed agri-input consumption in our addressable markets,” Managing Director Sameer Goel said in a statement.

Up to last close, shares of Coromandel have fallen 15.7 per cent this year, while peer Chambal Fertilisers and Chemicals Ltd is up 6 per cent during the same period.

Nippon Life’s open offer to RNAM opens today

The open offer from Nippon Life Insurance Company to the shareholders of Reliance Nippon Life Asset Management opens on Tuesday and closes on August 6. The company plans to acquire up to 25.33 per cent stake (or 15.57 crore shares) in the latter’s expanded voting share capital at ₹230 a share. The open offer was mandatory, as Reliance Capital in May had announced exit from the mutual fund business by selling its stake in RNAM to its joint venture partner Nippon Life.

Academic qualification: Rahul Kirloskar cautioned for making wrong disclosure

SEBI has cautioned Rahul Kirloskar, one of the promoters of Pune based Kirloskar Brothers, for erroneous disclosure regarding his education qualifications.

For years, Kirloskar had stated in public records, mainly in company annual reports, that he had Mechanical Engineering degree from the US. It has now come to light that such a disclosure was erroneous. After a few shareholders raised the issue with group companies where he is a board member, Kirloskar in a letter dated January 21, 2019 told SEBI that his “education qualifications were erroneously stated in public domain.” Similar disclosures were also made in the company’s annual report. Click here to read in full the report on SEBI caution to Rahul Kirloskar on academic qualifications .

FIR registered against former J&K Bank chairman Parvez Ahmed

The Anti-Corruption Bureau (ACB), Jammu, has registered a First Information Report (FIR) against former Jammu & Kashmir Bank chairman, Parvez Ahmed Nengroo, for acts of favouritism and abuse of official position as chairman of the bank.

ACB has proceeded against the bank for violation of norms in an insurance deal with IFFCO TOKIO General Insurance, in which a close relative of the former chairman is employed.

The allegation is that Parvez’s relative got a plum post in IFFCO TOKIO in return for the bank entering into a bancassurance deal with the insurance company. This was done in connivance with the Managing Director of IFFCO TOKIO General Insurance, according to an official release issued by the ACB, Jammu.

Benchmark indices weakly negative

The Sensex and the Nifty, which opened the day in the green, quickly slipped into mildly negative territory.

In early trading, the Sensex was at 38,014, down 17 points or 0.04 per cent lower, while the Nifty was at 11,338, down 7 points or 0.06 per cent lower.

The top gainers on the Sensex were Infosys, Kotak Bank, Axis Bank, HeroMotoCorp and Power Grid, while the laggards were HDFC, YES Bank, HDFC Bank, Bajaj Auto and L&T.

IT, technology, realty, power and utlities sector shares rose between 0.70-1.3 per cent on the BSE, while finance and healthcare shares lost between 0.30-0.60 per cent.

On Monday, the 30-share index dropped 305.88 points or 0.80 per cent to settle at 38,031.13, and the broader NSE Nifty sank 82.10 points 0.72 per cent to close at over two-month low of 11,337.15.

According to an agency report, the market has entered a bearish phase amid concerns over an economic slowdown and weak corporate earnings. The report quoting experts said heavy foreign fund outflows and a weak monsoon were also hurting investor sentiment.

On a net basis, foreign institutional investors sold equities worth Rs 1,916.91 crore, while domestic institutional investors purchased shares to the tune of Rs 1,829.90 crore, provisional data available with stock exchanges showed Monday.

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

Equities on Wall Street, too, ended on a positive note on Monday. Meanwhile, the Indian rupee depreciated 10 paise (intra-day) to 69.03 against the US dollar.

The global oil benchmark Brent crude futures were trading marginally higher at 63.33 per barrel. (with inputs from PTI)

Investor wealth plummets over Rs 4 lakh cr in 3 days of market fall

Investor wealth plunged over Rs 4 lakh crore in three days of market fall amid weak global trends and muted domestic sentiments. Stock markets extended their losses for a third straight day with cumulative losses of 3.05 per cent or 1,184.15 points since July 18. Click here to read in full the report on sharp fall in investor wealth .

IDBI Bank, Arvind, MCX and six others excluded from F&O

The NSE said on Monday that it will exclude another nine securities from futures and options (F&O) trading as these were found to be ineligible based on its selection criteria.

The stocks are Arvind, Birlasoft, Engineers India, Hindustan Zinc, IDBI Bank, Kajaria Ceramics, Multi Commodity Exchange of India, Oracle Financial Services Software and Raymond. Click here to read more on securities excluded from F&O trading by NSE .

Opening bell

The benchmark indices, the BSE Sensex and the NSE Nifty, opened in the green on Tuesday. The Sensex was up 32 points or 0.09 per cent firmer at 38,063, while the Nifty was at 11,356, up 10 points or 0.09 per cent firmer.

Day Trading Guide for Tuesday, July 23, 2019

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

₹2297 • HDFC Bank

₹785 • Infosys

₹264 • ITC

₹146 • ONGC

₹1280 • Reliance Ind.

₹350 • SBI

₹2109 • TCS

11360 • Nifty 50 Futures

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

Today's Pick: Gruh Finance (₹274.8): Sell

The stock of Gruh Finance tumbled almost 4 per cent with above average volume on Monday, breaching the 200-day moving average downwards.

Investors with a short-term perspective can sell the stock at current levels. Since encountering a key resistance at around ₹330 in late May this year, the stock has been in a short-term downtrend. While trending down, the stock had breached a key support at ₹300 in mid-June. Following a narrow sideways movement, the stock appears to have resumed the downtrend now. Moreover, the stock has closed below the immediate support level of ₹280. Click here to read in full Today's Pick on Gruh Finance.

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