Sensex settles 277 points higher, lifted by gains in bank, auto stocks

Nifty up 85 points at 10,948

 

4:15 pm

Closing bell

The BSE Sensex on Tuesday rebounded by over 277 points, led by gains mainly in bank and auto stocks, as participants hoped that the RBI will further slash its repo rate to lift sagging consumer sentiment.

Likewise, the Nifty, too, recovered from its five-month low to settle around 85 points higher ahead of the RBI’s policy outcome.

After swinging over 705 points during the day, the 30-share index closed at 36,976.85, up by 277.01 points, or 0.75 per cent. It hit a high of 37,241.77 and a low of 36,536.59.

The 50-share too Nifty ended 85.65 points, or 0.79 per cent, higher at 10,948.25 points.

Top gainers in the Sensex pack included YES Bank, TechM, Bajaj Finance, Bharti Airtel, Maruti, Asian Paints and Hero MotoCorp -- rising up to 5.30 per cent.

On the other hand, PowerGrid, TCS, RIL, Tata Motors, Bajaj Auto, Vedanta, Infosys and ITC fell as much as 1.52 per cent.

“Markets gained strength on the back of buying by investors, ahead of the key RBI policy announcement on Wednesday,” said Narendra Solanki, Head, Fundamental Research (Investment Services) - AVP Equity Research, Anand Rathi Shares & Stock Brokers.

The Monetary Policy Committee headed by RBI Governor Shaktikanta Das on Monday started deliberations on the third bi-monthly policy review of the current financial year, amid expectations of yet another 25 basis points cut in the lending rate to boost the slowing economy.

Besides a rate cut, the industry also expects the six-member MPC to take steps to improve the liquidity situation and also ensure transmission of rate cuts to borrowers by the banks.

Meanwhile, positive sentiment ahead of the Finance Minister’s meetings with industry leaders amid anticipation of steps to improve the state of the economy quickly, too, buoyed market mood here, he added.

Finance Minister Nirmala Sitharaman on Monday said she will meet representatives of various sectors and “fairly quickly” come out with steps to help them.

“The essential idea behind these meetings is to hear from them and fairly quickly after that come up with something which will help those sectors, which are giving their views to us,” she told presspersons.

Elsewhere in Asia, the Shanghai Composite Index, Hang Seng, Nikkei and Kospi ended in the red. While, equities in Europe were trading on a positive note in their respective early sessions.

On the currency front, the rupee also recovered by 7 paise to 70.80 in afternoon trade. The global oil benchmark Brent crude futures were trading 0.48 per cent higher at 60.10 per barrel.

3:30 pm

European shares inch higher after two-day sell-off

The pan-European stocks benchmark rose 0.2 per cent. File Photo   -  Bloomberg

European shares steadied on Tuesday after posting their biggest two-day drop in over three years, as upbeat German data soothed some of the nerves around the past week's escalation of US-China trade tensions.

German industrial orders rose 2.5 per cent in June, the biggest jump since August 2017, although the government of Europe's biggest economy said it was yet to reach a turning point after months of weakness which have worried investors. Click here to read in full the European markets report.

2:50 pm

Benchmark indices up more than 1%

The benchmark indices, the BSE Sensex and the NSE Nifty, built on their morning gains to stand firmer ahead of the close on Tuesday.

The Sensex was trading at 37,164, up 464 points or 1.27 per cent, while the Nifty was at 10,997, up 134 points or 1.24 per cent firmer.

Tech Mahindra spurted 4.37 per cent on the Sensex, while Bharti Airtel, L&T, Bajaj Finance and YES Bank gained over 3 per cent each.

The laggards in the Sensex pack were Power Grid, TCS, Tata Motors, Reliance and ONGC.

Telecom, basic materials and capital goods sector shares propped up the BSE index, gaining more than 2 per cent during the session. Finance, metals and banking shares also gained between 1.50-2 per cent in late trading.

2:35 pm

Oil prices rise, but US-China trade tensions drag

The international benchmark fell more than 3 per cent on Monday.   -  Bloomberg

 

Oil prices rose 1 per cent on Tuesday as traders betting on falling prices bought back contracts to lock in profits, after declines over the last three sessions due to escalating trade tensions between China and the US.

Brent prices plunged more than 8 per cent in the three sessions from their close on July 31, with US President Donald Trump vowing to impose new tariffs on Chinese imports, and China making further moves against US agricultural cargoes. Click here to read in full the global oil markets report.

2:20 pm

Offshore yuan pulls off all-time lows after Beijing steps in to curb falls

China’s yuan declined 2.3% over three days.   -  Reuters

 

The offshore yuan pulled back from an all-time low on Tuesday after Beijing appeared to take steps to prevent the currency from weakening further, following a sharp drop that prompted the US government to declare China was manipulating its currency.

China said on Tuesday it was selling yuan-denominated bills in Hong Kong, in a move seen as curtailing short selling of the currency. Click here to read in full the global forex markets report.

1:55 pm

Nifty call: Buy on intra-day dips, with stop-loss at 10,900 levels

Nifty 50 August futures (10,954)

After an almost flat opening, the Sensex and Nifty entered positive territory and continued to trend upwards amid volatility.

The Asian markets have recovered from their intra-day lows and have trimmed their losses. The Nikkei 225 was down 0.6 per cent at 20,585 and the Hang Seng index had declined 1.2 per cent to 25,820. Click here to read in full the Nifty call report.

1:45 pm

Gold firms near 6-year high on safe-haven demand

 

Gold prices held firm near six-year highs on Tuesday as investors flocked to safety after the US designated Beijing a currency manipulator, escalating a protracted trade war between the world's two biggest economies.

Spot gold was down 0.2 per cent at $1,460.19 per ounce as of 0734 GMT after hitting its highest level since May 2013, at $1,474.81, earlier in the session. US gold futures were down 0.3 per cent at $1,472.40 an ounce. Click here to read in full the gold markets report.

1:30 pm

Alkyl Amines shares hit 4-year high after Q1 profit almost doubles

Shares of Alkyl Amines Chemicals Ltd rose as much as 19 per cent to Rs 829, posting their biggest intra-day per cent gain since October 5, 2015.

The speciality chemicals maker's June-quarter profit almost doubled to Rs 35.09 crore ($4.96 million) from Rs 17.67 crore. Total revenue rose by 50 per cent to Rs 266 crore.

Around 15,900 shares changed hands, 31.5 times the 30-day average. Up to last close, the stock had fallen 13 per cent this year, while peer S. H. Kelkar and Co Ltd was down 34 per cent. - Reuters

12:45 pm

Global stocks extend losses amid escalation of US-China trade war

MSCI's All Country World Index, which tracks shares in 47 countries, extended last week's slide and slumped 2.5%.   -  Reuters

 

Global stocks extended already substantial losses on Tuesday, after Washington tagged China a currency manipulator, shaking fragile investor sentiment in a rapid escalation of the US-China trade war.

Safe-haven assets, including bonds and some currencies such as the yen and Swiss franc, benefited as investors scurried to avoid risk.

In early European trade, the pan-region Euro Stoxx 50 futures were down 0.2 per cent, German DAX futures slipped 0.15 per cent and Britain's FTSE futures lost 0.4 per cent. Click here to read in full the global markets report.

 

12:15 pm

Benchmark indices trade firm

The benchmark indices, the BSE Sensex and the NSE Nifty, traded firm at mid-session on Tuesday.

The Sensex was trading at 36,871, up 171 points or 0.50 per cent firmer, while the Nifty was at 10,916, up 54 points or 0.50 per cent higher.

The top gainers on the Sensex were Tech Mahindra, IndusInd Bank, YES Bank, HCL Tech and Asian Paints, while the laggards were Power Grid, Tata Motors, ONGC, REliance and Vedanta.

The majority of sectoral indices gained during the session, with metals, capital goods and basic materials rising more than 1 per cent. Industrials, consumer durables, consumer discredtionary goods, finance and telecom rose between 0.80-1 per cent each.

12:05 pm

Commodities sag as top buyer has lighter wallet

 

Commodities markets suffered another blow on Monday as China’s currency tumbled against the US dollar, reducing the purchasing power of the biggest buyer of everything from oil to copper to soybeans.

In the latest escalation of the trade war roiling global markets, China allowed the yuan to breach 7 per dollar for the first time since 2008. Nearly all major global commodities are priced in US dollars, so a weaker currency means an importer can buy less with the same amount of local money. Crude, industrial metals and crops all dropped. Click here to read in full the report on commodities sag as top buyer has lighter wallet.

 

11:40 am

Will RBI cut the repo rate sharply in the upcoming policy?

 

Rising concerns on a growth slowdown in the domestic market and a favourable inflation trend have raised market expectations of a sharp cut in repo rate by the RBI, in the past month. After cutting its policy rate by 25 basis points and changing its stance from neutral to accommodative — in the June policy — the RBI threw open the possibility of more rate cuts in the coming months. June CPI inflation remaining well below the RBI’s 4 per cent target (though food inflation inched up) has also kept expectations of a rate cut in the August policy, intact. Click here to read in full the report that asks will RBI cut repo rate sharply in upcoming policy.

 

11:10 am

Berger Paints hits record high after Q1 profit spike

 

Shares of Berger Paints India Ltd rose as much as 5.2 per cent to a record high of Rs 351.65.

The paint manufacturer posted a 32 per cent jump in June-quarter consolidated profit to Rs 177 crore ($25.05 million), versus Rs 134 crore a year ago, beating estimates of Rs 151 crore. Revenue rose 15.7 per cent to Rs 1,716 crore. Around 4 million shares changed hands, versus a 30-day average of about 8,47,100 shares.

Up to last close, the stock was up 1.2 per cent this year, while Asian Paints, which posted a 17.6 per cent rise in Q1 profit on July 24, was 11.1 per cent higher ($1 = Rs 70.6600). - Reuters

 

10:50 am

Mangalam Cement sees best session in over 18 months on Q1 profit

 

Shares of Mangalam Cement Ltd rose as much as 13.7 per cent to Rs 253, their biggest daily percentage gains since January 16, 2018.

The cement manufacturer posted June-quarter profit of Rs 33.22 crore ($4.70 million) versus a loss of Rs 15.32 crore. Revenue rose 31 per cent to Rs 333 crore.

Stock est PE of 22.54 is well above the sector average of 19.37.

Up to last close, the stock is down 0.3 per cent this year, while peer Sagar Cements is 17 per cent lower ($1 = 70.7250 rupees) - Reuters

10:40 am

Wall St sinks as yuan slide inflames US-China trade dispute

The S&P 500 has fallen for six consecutive sessions and is now about 6% below its record closing high on July 26.   -  Bloomberg

 

Wall Street slumped on Monday and futures pointed to more losses to come after a fall in China's yuan currency and US President Donald Trump's vow to impose additional tariffs on Chinese goods sparked an escalation of the US-China trade war.

S&P 500 futures late in the day dropped over 1 per cent after the United States officially designated China a currency manipulator, sharply escalating the ongoing dispute between the world's two largest economies. US Treasury Secretary Steven Mnuchin said in a statement that Washington will engage with the International Monetary Fund to eliminate unfair competition from Beijing. Click here to read in full the US markets report.

10:35 am

SRF sees best session in over 4-1/2 years on profit surge

Shares of SRF Ltd, which makes chemicals and polymers, jumped as much as 13.4 per cent to Rs 2,924 in the biggest daily per cent gain since November 19, 2014.

June-quarter profit rose 41.3 per cent to Rs 189 crore ($26.77 million), beating estimates of Rs 149 crore.

Total revenue rose 9 per cent, aided by a 26 per cent jump in the chemical business.

Up to last close, the stock is up 29 per cent this year, while peer Tata Chemicals fell 21 per cent. - Reuters

10:30 am

Yuan pulls off lows, yen falls as Beijing seen curbing fresh losses

China let onshore yuan fall to 11-year low on Monday. File Photo   -  Reuters

 

The offshore yuan pulled back from an all-time low on Tuesday after Beijing appeared to take steps to prevent the currency from weakening further, following a sharp drop that prompted the US government to declare China was manipulating its currency.

The yen erased gains versus the dollar and fell against most major currencies, while the dollar index against major peers remained on the backfoot after Monday's rapid escalation in tensions pushed the US-China trade war into uncharted territory. Click here to read in full the global forex market report.

10:20 am

Rupee rises 26 paise to 70.47 against $ in early trade

 

The rupee rebounded from a five-month low and appreciated by 26 paise to 70.47 against the US dollar in early trade on Tuesday amid a positive opening in the domestic equity market. Click here to read in full the rupee report.

10:00 am

Oil prices rise, escalating US-China trade war caps gains

 

Brent crude rose on Tuesday, after earlier falling to its lowest since January, as traders betting on falling prices bought back contracts to lock in profits from recent declines caused by the escalating trade dispute between the US and China. Click here to read in full the oil markets report.

9:55 am

Sensex, Nifty spurt into the green

The Sensex and Nifty spurted into the green in early trading on Tuesday. The Sensex jumped 169 points or 0.46 per cent to trade at 36,873, while the Nifty traded at 10,917, up 55 points or 0.51 per cent firmer.

The top gainers on the Sensex were HeroMotoCorp, YES Bank, IndusInd Bank, Tech Mahindra and L&T, while the laggards were TCS, Kotak Bank, Reliance, Hindustan Unilever and ONGC.

All the sectoral indices with the exception of Informatio Technology shares were in the green. The capital good, auto, realty, industrials and consumer discretionary goods indices rose more than 1 per cent in early session.

An agency report quoting traders said despite weak domestic and global cues, value-buying in banking and auto stocks lifted key indices.

Both benchmark indices saw intense volatility throughout Monday's session due to multiple headwinds including the escalation in the US-China trade war, weak corporate earnings, rupee downfall and political tensions in Jammu and Kashmir.

The 30-share index had ended 418.38 points, or 1.13 per cent, and the Nifty plunged by 134.75 points or 1.23 per cent to close at 10,862.60 points.

Elsewhere in Asian, Shanghai Composite Index, Hang Seng, Nikkei and Kospi were trading significantly lower in their respective early sessions.

Bourses on Wall Street too ended in the red on Monday.

Meanwhile, on a net basis, foreign institutional investors sold equities worth Rs 2,016.73 crore, while domestic institutional investors bought shares to the tune of Rs 1,871.27 crore, provisional data available with stock exchanges showed on Monday.

On the currency front, the Indian rupee appreciated 22 paise to 70.50 against the US dollar.

The global oil benchmark Brent crude futures rose 0.99 per cent to 60.40 per barrel. (with inputs from PTI)

9:50 am

Global stock losses steepen as US puts yuan in crosshairs

MSCI's All Country World Index, which tracks shares in 47 countries, extended last week's slide and slumped 2.5%.   -  Reuters

 

Global stocks extended already substantial losses on Tuesday as China's yuan currency dropped to an 11-year low after Washington designated Beijing a currency manipulator in a rapid escalation of the US-China trade war.

Safe-haven assets, including bonds and some currencies such as the yen and Swiss franc, benefited as investors scurried to avoid risk. US Treasury Secretary Steven Mnuchin said on Monday the government had determined that China is manipulating its currency, and that Washington would engage the International Monetary Fund to eliminate unfair competition from Beijing. Click here to read in full the Asian markets report.

9:45 am

What to Watch: Sundaram Finance, Titan, Arvind results

Around 70 companies will declare their quarterly results for the period ended June 2019 on Tuesday. Among these are AB Fashion, Arvind, Asahi India, BASF, Bharat Gears, Central Bank, GSFC, Global Offshore, Indiabulls Housing, Indowind, JK Lakshmi Cement, JSW Energy, Lakshmi Vilas Bank, Metropolis, Max Financial, Minda Ind, Nilkamal, NLC India, Pidilite, REC, Shriram EPC, Shemaroo, Thomas Cook, Titan Co, Sundaram Finance, Walchandnagar, Zensar Tech and Zodiac JRD.

9:35 am

What to watch: J&K Bank: Will it regain mojo in new dawn?

 

Shares of Jammu & Kashmir Bank may remain in focus, with the Centre on Monday revoking Article 370 that gave special status to J&K and proposed bifurcation of the State into two Union Territories, Jammu & Kashmir and Ladakh. Though it is still early days, most analysts feel there could be big business and economic developments for the people of J&K, which the bank could capitalise on. However, one has to wait and watch on how the situation develops in the next few weeks in the valley.

9:25 am

What to watch: Berger Paints: Focus on expansion plans

 

Berger Paints India on Monday said it aims to grow in Russia and was also evaluating inorganic growth in the country while it continues to pump capital into the domestic market. The company had earmarked ₹200 crore in the current fiscal toward modernisation of the existing units and greenfield units in the domestic market. Berger is also constructing its first colourant facility at Rishra, West Bengal. Investors and shareholders will closely monitor further developments.

9:15 am

Opening bell

The benchmark indices, the BSE Sensex and the NSE Nifty, opened in the red on Tuesday. The Sensex was down 66 points or 0.18 per cent at 36,633, while the Nifty opened at 10,832, down 30 points or 0.28 per cent lower.

On Monday, the equity Sensex tanked over 418 points to close at 36,699.84 due to intense selling in banking, finance and metal stocks, amid weak global cues and political uncertainty over the Kashmir issue. The 50-share Nifty plunged by 134.75 points or 1.23 per cent to close at 10,862.60 points as 38 of its constituents declined.

9:10 am

Day Trading Guide for Tuesday, August 6, 2019

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

₹2179 • HDFC Bank

S1

S2

R1

R2

COMMENT

2166

2150

2195

2210

Consider initiating fresh long positions with a fixed stop-loss if the stock rallies above ₹2,195 levels

 

₹776 • Infosys

S1

S2

R1

R2

COMMENT

769

762

784

791

Initiate fresh long positions with a tight stop-loss if the stock of Infosys moves beyond ₹784 levels

 

₹259 • ITC

S1

S2

R1

R2

COMMENT

256

253

262

265

Fresh short positions can be initiated with a fixed stop-loss if the stock fails to rally above ₹262 levels

 

₹131 • ONGC

S1

S2

R1

R2

COMMENT

128

125

134

137

Initiate fresh long positions with a stiff stop-loss only if the stock of ONGC rebounds up from ₹128 levels

 

₹1143 • Reliance Ind.

S1

S2

R1

R2

COMMENT

1130

1115

1160

1175

Fresh long positions are recommended with a fixed stop-loss only if the stock of RIL advances above ₹1,160 levels

 

₹300 • SBI

S1

S2

R1

R2

COMMENT

292

285

307

316

Make use of intra-day declines to buy the stock while maintaining a stiff stop-loss at ₹292 levels

 

₹2248 • TCS

S1

S2

R1

R2

COMMENT

2230

2210

2270

2290

Near-term outlook is bullish for the stock. Make use of intra-day dips to buy it with a stiff stop-loss at ₹2,230 levels

 

10896 • Nifty 50 Futures

S1

S2

R1

R2

COMMENT

10850

10800

10950

11005

Initiate fresh long positions with a tight stop-loss only if the contract moves beyond 10,950 levels

 

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

9:00 am

Today's Pick: Aditya Birla Capital (₹85.4): Buy

 

Investors with a short-term horizon and contrarian view can buy the stock of Aditya Birla Capital at current levels.

The stock gained 4.6 per cent accompanied by above average volume on Monday while the benchmark indices witnessed a sell-off. Key medium-term support in the band between ₹78-80 is providing base for the stock. In February, the stock had bounced from this range and witnessed a short-term uptrend that got halted at ₹105 in March. Since then, the stock has been in a sideways consolidation phase in the wide range between ₹78 and ₹105. Click here to read in full Today's Pick on Aditya Birla Capital.

Published on August 06, 2019