Sensex settles 135 points lower at 37,847

Closing bell

The benchmark indices, the BSE Sensex and the NSE Nifty, finished lower on Wednesday.  The Sensex settled 135 points or 0.36 per cent lower at 37,847, while the Nifty dropped 59 points or 0.53 per cent at 11,271.

The top gainers on the Sensex were Asian Paints, Hindustan Unilever, HDFC, HDFC Bank and HCL Tech, while the laggards were IndusInd Bank, Bajaj Finance, Tata Motors, Tata Steel and HeroMotoCorp.

All the BSE sectoral indices closed in negative territory. Metal sector shares dropped 2.5 per cent lower, followed by auto (down 1.98 per cent), basic materials (1.91 per cent), oil and gas (1.67 per cent), industrials (1.61 per cent) and capital goods (1.53 per cent lower).

Domestic investor sentiment was hit by IMF’s downward revision of India’s economic outlook. The IMF on Tuesday projected a slower growth rate for India in 2019 and 2020, a downward revision of 0.3 per cent for both the years, saying its GDP will now grow respectively at the rate of 7 and 7.2 per cent, reflecting a weaker-than expected outlook for domestic demand.

Oil edges up on US stocks fall, West Asian tensions

Oil prices nudged higher on Wednesday on rising tensions over Iran, a sharp fall in US crude stocks and positive signs on Sino-US talks, although worries about weak demand kept a cap on gains.

Brent crude futures were up 21 cents, or 0.3 per cent, at $64.04 a barrel by 0719 GMT, after rising nearly 1 per cent on Tuesday. US West Texas Intermediate crude was up 28 cents, or 0.5 per cent, at $57.05 a barrel, having risen about 1 per cent in the previous session. Click here to read in full the global oil prices report .

Buying cheap stocks can prove very expensive, says ICICI Securities

Buying cheap stocks isn’t rewarding as some bargains may be too good to be true, according to ICICI Securities analysts.

There’s a very low probability for a stock to reclaim its previous high if it has slumped more than 75 per cent from its peak, analysts led by Vinod Karki at ICICI Securities wrote in a note. Only eight of the 228 stocks, which fell more than 75 per cent over a two-year period since 2010, have been able to reach their previous high, the report said. Click here to read in full the report on why buying cheap stocks can be expensive .

Benchmark indices rangebound

The Sensex and Nifty were range-bound ahead of the close on Wednesday. The Sensex was trading at 37,860, down 122 points or 0.32 per cent, while the Nifty was at 11,274, down 56 points or 0.50 per cent.

The top gainers on the Sensex were Asian Paints, Hindustan Unilever, HDFC, HDFC Bank and HCL Tech, while the laggards were IndusInd Bank, Tata Steel, Tata Motors, Bajaj Finance and Hero MotoCorp.

Downbeat data keeps European shares grounded

European stock markets were flat on Wednesday, subdued by dour signals from Deutsche Bank and Aston Martin, as well as a slide in commodity-linked stocks, with weak euro zone manufacturing and services surveys adding to worries on the outlook for growth.

The purchasing manager (PMI) surveys showed euro zone business growth was weaker than expected in July, hampered by a deepening contraction in manufacturing, and some indicators suggested conditions will get worse next month. Click here to read in full the European share markets report .

Bond market rally snaps as hopes for chunky rate cut fade

The domestic rates market is dialling back on hopes of any significant monetary easing, bringing one of the world’s best bond rallies of the month to a stop. Blame the central bank chief for taking away the punch bowl.

Traders who pushed benchmark yields down to a two-year low last week, counting on chunky rate cuts, are taking a relook at their bets. That’s seen the 10-year yield jump 10 basis points in two days. The one-year overnight indexed swap also rose eight basis points in this period. Click here to read in full the bond markets report .

Weak data, dovish ECB bets send euro to 2-month low

The euro fell to a two-month low against the dollar on Wednesday, hit by weak economic data and speculation that the European Central Bank may start easing policy as soon as this week.

Money markets are pricing in a 45 per cent chance of a 10 basis points cut on Thursday. The ECB could also signal further reductions down the road or a fresh round of quantitative easing, said Esther Maria Reichelt, an analyst at Commerzbank. “It won't be just about the (possible) rate cut,” she said. Click here to read in full the forex markets report .

Asian stocks lifted on prospect of fresh Sino-US trade talks

Asian shares crept higher on Wednesday as the prospect of fresh Sino-US trade talks drew a guarded welcome, while the euro hit lows on a range of counterparts amid speculation the European Central Bank was near to easing policy.

Sentiment had been helped by a Bloomberg report that US Trade Representative Robert Lighthizer would travel to Shanghai next week for meetings with Chinese officials. Click here to read in full the Asian markets report .

Benchmark indices recoup some losses

The Sensex and Nifty trimmed their losses in the afternoon session on Wednesday.

The Sensex was trading at 37,854, down 127 points or 0.34 per cent. The benchmark had lost more than 200 points earlier in the session. The Nifty was down 0.52 per cent or 58 points at 11,272.

Among the top gainers on the Sensex were Asian Paints, HDFC, Hindustan Unilever, HDFC Bank and ONGC, while the laggards were IndusInd Bank, Tata Steel, Bajaj Finance, Tata Motors and M&M.

All the sectoral indices were in the red. The major losers were metal sector shares, which were down 2.56 per cent, followed by basic materials (down 1.89 per cent), auto and industrials (1.65 per cent each), capital goods (1.56 per cent) and realty and oil and gas shares (down 1.30 per cent).

Nifty Call : Make use of intra-day rallies to sell with a stop-loss at 11,300

Following a positive start, the Sensex and the Nifty immediately slipped in to negative territory and continues to trade in the red. Both the benchmark indices have slumped over 0.6 per cent.

The market breadth of the Nifty index is biased towards declines. The India VIX is hovering flat at 13.3 levels. Selling pressure is seen in the Nifty Mid and Small-cap indices which have declined 1.3 per cent and 1.2 per cent respectively. Apart from the Nifty media index that has gained 1.2 per cent, all the other sectoral indices are trading in the negative territory. The Nifty Metal index has tumbled 2.7 per cent. Click here to read in full the Nifty call report.

Total picks up 50 per cent stake in Dhamra LNG Terminal

French oil and gas giant Total SA has taken a 50 per cent stake in Dhamra LNG Terminal Pvt Ltd (DLTPL), a unit of Adani Ports and Special Economic Zone Ltd (APSEZ), which is constructing a 12 million tonne per annum (mtpa) LNG regasification terminal at its port located at Dhamra in Odisha's Bhadrak district.

BusinessLine could not ascertain the value of the deal, the first after the New York Stock Exchange-listed French multinational and the world’s second biggest private LNG firm, announced a joint venture in October 2018 with the Adani Group to develop multi-energy offerings for the Indian market, including LNG and fuel retailing, multiple sources said. Click here to read in full the report on Total picks up stake in Dhamra LNG terminal.

Oil prices gain as US inventory drops, West Asia tensions

Oil prices rose on Wednesday, extending gains after an industry group reported a much bigger than expected drop in US inventories, while the US Navy said it may have downed a second Iranian drone last week.

Brent crude futures were up 24 cents, or 0.4%, at $64.07 a barrel by 0049 GMT, after rising nearly 1% on Tuesday. Click here to read in full the oil markets report .

Sensex, Nifty maintain weak undertone

The benchmark indices continued to trade in the red at mid-session on Wednesday. The Sensex was at 37,764, down 218 points or 0.58 per cent. The Nifty dropped 79 points or 0.70 per cent to trade at 11,251.

The top gainers on the Sensex were HDFC, Hindustan Unilever, HDFC Bank, Kotak Bank and YES Bank, while the laggards were Vedanta, Tata Steel, IndusInd Bank, Tata Motors and ICICI Bank.

All the BSE sectoral indices were in the red, with the prominent losers being metals sector shares that shed 2.82 per cent during the session, followed by realty (down 1.97 per cent), basic materials (1.84 per cent), industials (1.78 per cent), capital goods (1.77 per cent), auto (1.59 per cent), oil and gas (1.34 per cent) and power (1.28 per cent).

SBI Life Insurance hits life high on quarterly results

Shares of SBI Life Insurance Co Ltd rose as much as 4.2 per cent to a record high on Wednesday. The company on Tuesday reported a 5 per cent rise in the June-quarter profit.

SBI Life's retail business franchise is geographically the most well diversified, leading to greater immunity from capital market downturns, Jefferies said in a note.

Jefferies has raised the price target to Rs 918 from Rs 745, while maintaining a 'buy' rating on the stock.

Twenty-four of the 26 brokerages covering the stock have a 'buy' rating or equivalent, one has 'hold' and one 'sell'; median PT of Rs 800.

The stock has gained 18.9 per cent this year as of Tuesday's close, compared to peers, HDFC Life Insurance Company's 5.3 per cent rise, and ICICI Prudential Life Insurance Company's 2.2 per cent growth.

NSE index may test support at 11,208

The NSE index is likely to test a support at 11,208.41. The support is identified as the 161.8 per cent Fibonacci projection level of the downtrend from its June 3 high to its June 19 low.

Earlier on Wednesday, the index broke a support from its 200-day exponential moving average and the 38.2 per cent Fibonacci retracement level on the uptrend from the October 26, 2018, low to the June 3, 2019 high, suggesting a fall to the 161.8 per cent projection level. Click here to read in full the report on NSE index technicals report.

Torrent Pharma sees best day in over 11 months as Q1 profit beats estimates

Shares of Torrent Pharmaceuticals Ltd rose as much as 6.2 per cent to Rs 1,559, posting their biggest intra-day per cent gain since August 3, 2018.

June-quarter profit climbed 32.5 per cent to Rs 216 crore ($31.32 million), slightly ahead of the Rs 213-crore estimate.

Total revenue jumped 7.5 per cent, helped by a rise in sales in most geographies. Click here to read in full the Torrent Pharma share price report .

Gold crawls higher on West Asia tensions

SPDR Gold holdings fall 0.25 per cent on Tuesday.

Gold prices rose on Wednesday, moving away from a one-week low touched in the previous session, as escalating tensions in the West Asia drove investors towards the safe-haven metal, while a stronger dollar limited the metal's gain.

Spot gold was up 0.3 per cent at $1,420.65 per ounce as of 0353 GMT, after hitting its lowest since July 17 at $1,413.80 in the previous session. US gold futures were steady at $1,421.30 an ounce. Click here to read in full the gold report .

Euro hits 2-month low as markets wait for ECB's policy stance

The euro slipped to a two-month low on Wednesday, as markets waited to gauge the European Central Bank's stance on policy amid bubbling expectations that it could eventually lower interest rates and join the global easing trend.

The common currency was little changed at $1.1147 after touching $1.1144, its lowest since May 31. It had already lost more than 0.5% the previous day.

The ECB holds a policy meeting on Thursday. Market expectations for the central bank to cut rates by 10 basis points have ebbed somewhat, but the central bank is still hoped to provide dovish guidance, paving the way for easing in September. Click here to read in full the forex markets report .

Asian shares cautious on trade talks; euro under pressure

Asian shares nudged higher on Wednesday amid hints of progress in the Sino-US trade saga, while the dollar hit two-month highs on the euro as investors wagered on a dovish outcome from the European Central Bank's coming policy meeting.

Sentiment had been helped by a Bloomberg report that US Trade Representative Robert Lighthizer would travel to Shanghai next week for meetings with Chinese officials. Click here to read in full the Asian markets report .

Deadline to file I-T returns extended to August 31

Salaried taxpayers, those with business income but out of the tax audit net and people taxed under presumptive incomes will have more time to file their income-tax returns this year.

The Central Board of Direct Taxes (CBDT) has extended the due date for filing of I-T returns for such categories of assesses for the Assessment Year 2019-20 to August 31 this year. They were earlier required to file their returns by July 31. Click here to read in full the report on deadline to file I-T returns extended .

Citing weak demand, IMF lowers India’s growth projection to 7%

The International Monetary Fund (IMF) on Tuesday lowered the growth estimate for India by 30 basis points (100 basis points means 1 percentage point) for the current as well as the next financial year.

“India’s economy is set to grow at 7 per cent in 2019, picking up to 7.2 per cent in 2020. The downward revision of 0.3 percentage point for both years reflects a weaker-than-expected outlook for domestic demand,” the multilateral agency said in its update on “World Economic Outlook” (WEO). The revision is relative to the April WEO. Click here to read in full the report on IMF lowers India's growth projection to 7% .

Mahindra & Mahindra Financial hits over 2-year low on Q1 profit miss

Shares of the Mahindra & Mahindra Financial Services fell as much as 15 per cent to Rs 289.15, their lowest since May 2017.

The June-quarter profit plunged 74.6 per cent to Rs 68.43 lakh ($9.91 million), missing estimates of Rs 366 crore. Total expenses jumped 34 per cent due to elevated finance costs.

Nomura has cut the TP to Rs 420 from Rs 500, citing a weakening growth outlook; maintains “buy”. Cuts FY20-21 assets under management growth given the weakness in demand. Click here to read in full Mahindra & Mahindra Financial hits over 2-year low .

Earnings, trade optimism push Wall St towards record high

The S&P 500 and Nasdaq approached record highs on Tuesday. File Photo

The S&P 500 and Nasdaq approached record highs on Tuesday, lifted by upbeat quarterly reports from Coca-Cola and United Technologies and on optimism the United States would resolve its trade conflict with China.

Stocks extended gains late in the session after Bloomberg reported that US Trade Representative Robert Lighthizer would travel to Shanghai next week for face-to-face trade meetings with Chinese officials. White House economic adviser Larry Kudlow told reporters on Tuesday the in-person talks to resolve the US-China trade deal were a good sign. Click here to read in full the US markets report .

Rupee slips 16 paise to 69.10 vs $ in early trade

The $5.4 billion iShares MSCI India exchange-traded fund, ticker INDA, lured more than $182 million last week, the most in more than four years, data compiled by Bloomberg show.

The rupee opened on a weak note and declined by 16 paise to 69.10 against the US dollar in opening trade on Wednesday, amid sustained foreign fund outflows and rising crude oil prices.

Forex traders said a cautious opening in domestic equities and strengthening of the US dollar vis-a-vis other currencies overseas kept up the pressure on the Indian rupee.

The rupee opened weak at 69.10 at the interbank forex market, down 16 paise over its last close. The rupee had settled at 68.94 against the US dollar on Tuesday. Click here to read in full the rupee report .

Benchmark indices slide into the red

After opening the session flat, the Sensex and Nifty dropped into the red in early trading on Wednesday.

The Sensex lost 195 points or 0.51 per cent at 37,787, while the Nifty shed 75 points or 0.67 per cent at 11,255.

The top gainers on the Sensex were HDFC, PowerGrid, Hindustan Unilever, SBI and YES Bank, while the laggards were Bajaj Finance, Vedanta, Tata Steel, Bharti Airtel and Hero MotoCorp.

All the sectoral indices were in the red, with metals, realty, auto, basic materials, telecom, energy and oil and gas sector shares suffering the highest losses.

According to an agency report quoting experts, IMF’s downward revision of India’s economic outlook hit domestic investor sentiment.

The IMF on Tuesday projected a slower growth rate for India in 2019 and 2020, a downward revision of 0.3 per cent for both the years, saying its GDP will now grow respectively at the rate of 7 and 7.2 per cent, reflecting a weaker-than expected outlook for domestic demand.

“India’s economy is set to grow at 7.0 per cent in 2019, picking up to 7.2 per cent in 2020. The downward revision of 0.3 percentage point for both years reflects a weaker-than expected outlook for domestic demand,” the International Monetary Fund (IMF) said in its World Economic Update.

Heavy foreign fund outflow and weak corporate earnings are also pushing the market lower, they said.

On a net basis, foreign institutional investors sold equities worth Rs 2,607.97 crore, while domestic institutional investors purchased shares to the tune of Rs 2,625.10 crore, provisional data available with stock exchanges showed on Tuesday.

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 8 paise (intra-day) to 69.03 against the US dollar.

The global oil benchmark Brent crude futures were trading marginally higher at 63.98 per barrel. (with inputs from PTI)

What to Watch: ICICI Pru Life, Canara Bank results in focus

Around 40 companies including Asian Paints, Bharti Infratel, Canara Bank, Cigniti, CG Consumer, GE T&D, IDFC First Bank, ICICI Pru Life, Intellect Design, Jubilant Food, Karur Vysya Bank, KSB, Liberty Shoes, Maharashtra Scooters, Nelco, Oberoi Realty, Orient Bell, PI Industries, Quess Corp, Rane (Madras), Reliance Nippon Life, Sharda Cropchem, Shriram Transport Fin, Syndicate Bank, Tube Investments, and V-Guard will declare their April-June results on Wednesday.

Company news: Strides Pharma Science

Strides Pharma Science on Tuesday informed the exchanges that the company’s formulations facility (KRSG Gardens) in Bangalore has received the Establishment Inspection Report (EIR) from the US Food and Drug Administration. The facility was inspected by the USFDA in May 2019, thereby confirming the successful closure of the inspection. The stock of Strides Pharma slumped 1.90 per cent at ₹343.30 on the BSE

Hotel Leela-Brookfield deal: SEBI puts ball back in shareholders’ court

Shareholders will have a final say in the deal involving Hotel Leelaventures (HVL) and Canadian investment fund Brookfield. SEBI on Tuesday directed HVL to seek a fresh shareholder vote on “the asset-sale transaction of the company along with the additional IP (intellectual property) transaction of the promoters and their affiliates.”

SEBI said the new shareholder approval should be sought after making all the material disclosures. It also directed adjudication proceedings against JM Financial ARC for its failure to ensure compliance with takeover regulations in the deal. Click here to read in full Hotel Leela-Brookfield deal: SEBI puts ball back in shareholders' court .

Probe Cairn India for withholding dividend to Cairn UK, SAT tells SEBI

Did Cairn India and Vedanta, controlled by Anil Agarwal, violate market norms with regard to payment of dividend worth around ₹440 crore? The Securities and Appellate Tribunal (SAT) has asked SEBI to probe. Click here to read more on SEBI directive to probe Cairn India for withholding dividend to Cairn UK .

What to Watch: Varun Beverages to turn ex-bonus

Shares of Varun Beverages will turn ex-bonus on Thursday. The company is rewarding its shareholders with one bonus share for two shares held in the company (i.e. 1:2). Investors wishing to receive the bonus shares need to own the company’s shares by Wednesday, as Varun Beverages has fixed July 27 as the record date to identify eligible shareholders to receive the bonus shares. According to the BSE web site, this is the maiden bonus issue from Varun Beverages

What to Watch: Order win may see Blue Star flaring up

Blue Star has won an air-conditioning and tunnel ventilation system order worth ₹253 crore from Mumbai Metro Rail Corporation. The scope of the order includes design, engineering, supply, installation and commissioning of air-conditioning, tunnel ventilation and environmental control system for nine underground stations and associated tunnels of Mumbai Metro between Mumbai Central and Bandra. Shareholders will closely monitor its execution.

Opening bell

The benchmark indices, the BSE Sensex and the NSE Nifty, opened Wednesday's session little changed from its overnight close.

The Sensex was up 26 points or 0.07 per cent at 38,008, while the Nifty was down 4 points or 0.04 per cent at 11,326.

The Sensex closed Tuesday's session 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.

Day Trading Guide for Tuesday, July 24, 2019

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

₹2263 • HDFC Bank

₹789 • Infosys

₹270 • ITC

₹144 • ONGC

₹1272 • Reliance Ind.

₹342 • SBI

₹2111 • TCS

11333 • Nifty 50 Futures

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

Today's Pick: Apollo Tyres (₹167.5): Sell

Investors with a short-term horizon can sell the stock of Apollo Tyres at current levels. The stock has been in an intermediate-term downtrend since encountering a key resistance at ₹300 in August 2018. Medium- as well as short-term trends are also down for the stock.

In late June, the stock met with a resistance at ₹205 and continued to trend downwards. It has been in a downtrend since then. While trending down, the stock beached a key support at ₹190 and the 21- and 50-day moving averages. Click here to read in full Today's Pick on Apollo Tyres .

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