Sensex, Nifty end marginally higher

Bank, auto stocks restrict gains

4.15 pm

Closing bell

Benchmark indices Sensex and Nifty saw their gains restricted after financial and auto stocks came under selling pressure towards the fag-end of the session.

A sense of caution still prevail among investors who are awaiting some measures from the government to arrest demand slowdown in various sectors which has been pulling down the economy. Further, lingering concerns over the health of non-banking finance companies (NBFCs) made markets jittery, leading to sell-offs in financial stocks.

After rallying 369 points during the day amid positive cues from global markets, the 30-share Sensex settled 52.16 points, or 0.14 per cent, higher at 37,402.49. It hit an intra-day high of 37,718.88 and a low of 37,358.49. The broader NSE Nifty too settled 6.10 points, or 0.06 per cent, up at 11,053.90. During the day, it hit a high of 11,146.90 and low of 11,037.85.

Top gainers in the Sensex pack included Sun Pharma, TechM, Axis Bank, L&T, Reliance Industries and ICICI Bank, which rose up to 2.66 per cent. On the other hand, Yes Bank, PowerGrid, ONGC, SBI, Mahindra and Mahindra, Hero MotoCorp, Tata Steel, Asian Paints and HDFC Bank were among the major laggards -- losing as much as 3.46 per cent.

Banking stocks fell after Reserve Bank governor Shaktikanta Das ruled out ordering an asset quality review of the systematically important shadow banks for now. According to traders, market rallied tracking positive cues from other Asian markets. However, losses in banking and auto stocks capped the gains.

Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Kospi and Nikkei ended significantly higher on rising hopes of stimulus by global central banks to counter economic slowdown. Equities in Europe were also trading on a positive note in their respective early sessions.

Meanwhile, the Indian rupee depreciated 30 paise to 71.46 against the US dollar intra-day. Brent crude futures, the global oil benchmark, rose 0.56 per cent to USD 58.97 per barrel. - PTI

3.50 pm

European shares

Germany's DAX outperforms broader market. File Photo   -  Bloomberg

 

European stock markets rose for the second session running, with Frankfurt shares leading a recovery from last week's six-month lows as investors cheered signs of moves by Germany and China to counter slowing growth. The pan-European STOXX 600 index, hammered since the start of August by worries about a possible slide back into recession, was 0.9 per cent higher. Click here to read more on the European stock market

3.35 pm

Why Ujjivan Financial stock has fallen

istock.com/D-Keine

 

Ujjivan Financial Services, the holding company of Ujjivan Small Finance Bank,that got listed in May 2016, fell about 3 per cent on Monday, after the company filed a draft red herring prospectus for the listing of its wholly owned small finance bank - Ujjivan Small Finance Bank.

While the extent of pain for shareholders of Ujjivan Financial will be known once the IPO price is fixed, the stock is likely to remain under pressure in the near-term. Here's why Ujjivan Small Finance Bank IPO is worrying Ujjivan Financial investors

3.20 pm

PE-VC investments zooms to all-time high

July 2019 recorded investments worth USD 8.3 billion across 106 deals,   -  Getty Images/iStockphoto

 

Private equity and venture capital investments in India crossed USD 8 billion in July - the highest fund infusion in a month by PE/VC funds - amid strong investment activity in infrastructure and real estate asset classes. Strong investment activity in infrastructure and real estate asset classes drove the overall deal tally as there were USD 4.7 billion worth of mega deals in the infrastructure sector in July 2019. Click here to read more on the PE-VC investments in India

3.05 pm

Gold rally

 

Gold prices have rallied by over Rs 3000 per 10 grams (999 purity) in spot markets so far in August, making it one of the sharpest rally for the yellow metal in recent times. As quoted by India Bullion and Jewellers Association (IBJA), gold prices started the month with Rs 34,633 for 10 grams and rallied to hit a peak of Rs 37,832 per 10 grams on August 13. Last quoted price was lower at Rs 37,675 on August 16. Read more to know why the gold prices are rallying in August

2.50 pm

Tata Motors outlook

 

The outlook for Tata Motors DVR (₹56.50) remains bearish. The stock finds major support at ₹53.80. Immediate resistance is at ₹64.60 and the next one at ₹73. A close above ₹97.65 will alter the medium-term outlook to positive for Tata Motors DVR. Here's more on the outlook of Tata Motors stock

2.35 pm

Spandana Sphoorty Financial falls on market debut

 

Shares of microfinance lender Spandana Sphoorty Financial made a tepid debut on the bourses, falling nearly 4 per cent over its issue price of ₹856. Spandana Sphoorty Financial’s initial public offer was subscribed little over 1.05 times earlier this month. Price range for the offer was fixed at Rs 853-856 per share. Read more on the stock activity of Spandana Sphoorty Financial on market debut

2.20 pm

Sensex trades 224 points higher; Nifty higher by 53 points

30-share BSE index Sensex was trading 223.64 points or 0.60 per cent higher at 37,573.97 while the 50-share NSE index Nifty was trading higher at 11,100.90, up 53.10 points or 0.48 per cent.

The top gainers in the Sensex pack were Sun Pharma, L&T, Axis Bank, ICICI Bank and Tech Mahindra while the laggards were Yes Bank, Power Grid, Mahindra & Mahindra, ONGC, and Tata Steel. Capital Goods stocks emerged the top gainer among the sectoral indices.

In the 50-share index, Infratel, Sun Pharma, L&T, ICICI Bank and Axis Bank were leading the positive pack while the stocks trading in red were Yes Bank, Grasim, UPL, GAIL and BPCL.

2.05 pm

Q1 analysis | Kaveri seed company

 

Last week, the stock of Kaveri Seed saw a smart 7-8 per cent rally, post the Q1 numbers. However, at Friday’s close of ₹463, the stock is still way below the levels at which it was trading a few months back. A look at some of investors’ concerns that are weighing on the stock of Kaveri Seed company

1.50 pm

DHFL sees best session

Shares of Dewan Housing Finance Corp Ltd (DHFL) rise as much as 14.5 per cent to ₹52.45, their biggest daily percentage gain since October 16, 2018. Around 25 million shares change hands, 29.4 times their 30-day average of 852,006. The stock hits its highest since Jan 28.

DHFL sees best session in over 10 months

Shares of Dewan Housing Finance Corp Ltd (DHFL) rise as much as 14.5 per cent to ₹52.45, their biggest daily percentage gain since October 16, ...

Read More  

1.35 pm

Nifty Call

 

The Sensex and the Nifty began the session with a gap-up open taking positive cues from the Asian markets. The Nifty August month contract started the session with a gap-up open at 11,082. Following an initial decline to the intra-day low of 11,065 the contract bounced back breaching a key resistance at 11,100 levels. Here's our Nifty Call for August futures

1.20 pm

Pharma stocks push indices higher

The 30-share BSE index Sensex jumps 346.66 points or 0.93 per cent to 37,696.99 while the 50-share NSE index Nifty is trading 0.79 per cent or 87.35 points higher at 11,135.15 led by pharma stocks.

The top gainers in the Sensex pack were Sun Pharma, L&T, ICICI Bank, Tech Mahindra and Axis Bank while the laggards were Yes Bank, Power Grid, ONGC, State Bank of India and Hero MotoCorp. Sectorally, capital goods stocks emerge the biggest gainer while the stocks of oil & gas were alone trading in negative.

In the broader index, the stocks of Infratel, Sun Pharma, L&T, IBUL Housing Finance, and ICICI Bank were the big gainers while the laggards were Yes Bank, Grasim, BPCL, UPL, and GAIL.

1.05 pm

Coffee Day hits upper circuit

A Cafe Coffee Day coffee shop, operated by Coffee Day Enterprises Ltd.   -  Bloomberg

 

Coffee Day Enterprises’ shares rise 5 per cent to ₹65.8 to hit upper circuit.

The promoters plan to restart talks with Coca-Cola Co to offload a chunk of their stake in the Cafe Coffee Day chain to cut the group's debt pile further, media had reported.

The stocks of Coffee Day Enterprises is trading at Rs 66.05, up 4.92 per cent. More on the stock activity of Coffee Day Enterprises, read here

12.50 pm

Chart focus - Ucal Fuel Systems

 

Witnessing buying interest, the stock jumped 12.3 per cent, accompanied by extra-ordinary volume on Friday. The stock had breached its 21-day moving average and a key resistance at ₹120 with a gap-up open on Friday. This floor of the gap at ₹120 will act as a significant support in the short term.

Investors with a medium-term perspective and contrarian view can buy the stock of Ucal Fuel Systems at current levels. Read more on the stock activity of Ucal Fuel Systems here

12.35 pm

Sensex surges 318 points led by industry-heavyweights

The 30-share BSE index Sensex surged 318.26 points or 0.85 per cent to 37,886.59 while the broader index Nifty was trading higher at 11,133.15, up 85.35 points or 0.77 per cent.

Industry heavyweights lend support to the BSE index with HDFC, ICICI Bank and Reliance contributing the highest. Among the top gainers in the Sensex pack were Sun Pharma, L&T, ICICI Bank, NTPC and HDFC while the laggards were Yes Bank, Power Grid, State Bank of India, Tata Steel and ONGC.

Sectorally, Capital goods stocks emerged the biggest gainers, trading higher by 1.47 per cent.

In the NSE index, the stocks of Infratel, Sun Pharma, Dr Reddys, L&T and ICICI Bank were leading the positive pack while the negative pack was led by the stocks of Yes Bank, UPL, State Bank of India, Grasim and Tata Steel.

12.20 pm

Gold and precious metals

Spot gold was down 0.3 per cent at $1,509.13 per ounce.   -  Bloomberg

 

Gold prices dipped due to a stronger US dollar and a recovery in equities, as major central banks around the world hinted at more stimulus, easing fears about a sharp economic downturn. Spot gold was down 0.3 per cent at $1,509.13 per ounce at 0354 GMT. US gold futures also fell 0.3 per cent to $1,518.70 an ounce.

Investors are now awaiting the Federal Reserve's Jackson Hole symposium this week to get greater clarity on the future path of interest rates. Click here to read more on the gold and other precious metals prices

12.05 pm

Accounting jugglery

 

A string of cases involving accounting sleight of hand and auditor negligence has come to light in recent times. But this is not new. Over the years, companies have used various methods to stretch the financial numbers to mislead investors and other stakeholders. Here's a look at five cases

11.50 am

Alkem Laboratories - Buy

 

The stock of Indian drug maker Alkem Laboratories has been under pressure over the past 12-15 months.

Over the medium to long term, the company’s changing product mix in favour of high-margin chronic segment, and launches in key therapies should translate into good growth. Change in distribution channel and added field force should rev up growth in the company’s revenue. Click here to read more on the stock activity of Alkem Laboratories

11.35 am

Pharma stocks shine

The shares followed their Asian peers higher, led by gains in pharmaceuticals stocks, after reports of a potential stimulus package from Germany boosted sentiment across global markets.

The broader NSE index rose 0.75 per cent or 82.35 points to 11,130.15, while the benchmark BSE index was up 304.05 points or 0.81 per cent at 37,654.38.

Wall Street stocks rose on Friday after Der Spiegel magazine reported that Germany's government was willing to take on debt, raising hopes that Europe's largest economy could avoid a recession and cooling worries about a global economic slowdown.

Asian stocks tracked the Wall Street rally on Monday, while a move by China's central bank to change the way a key interest rate benchmark is set also helped sentiment.

Sun Pharmaceutical Industries Ltd rose 4 per cent and led gains on the NSE index, after the company signed a long-term licensing deal to develop generic products in China. Shares of its peers Dr Reddy's Laboratories and Cipla Ltd were among the top gainers on the NSE index, pushing the Nifty pharma index up by 1.94 per cent.

“There is some buying in the pharmaceutical basket because of a lack of opportunity in the overall arena,” said Saurabh Jain, assistant vice-president of research at SMC Global Securities in New Delhi. “Markets are looking for a solace.”

The markets have had a rocky journey in recent months, with the NSE index falling about 8 per cent since a record high in June, amid slowing economic growth, a massive slowdown in the automobile industry and poorly received budget proposals.

Finance Minister Nirmala Sitharaman this month held several meetings with industry executives, who have called for stimulus measures, including tax rebates, to support consumer demand and private investment.

A source told Reuters on Friday that the government was looking into proposals such as exempting foreign portfolio investor trusts from recently imposed high taxes, deferring a plan to raise the minimum public shareholding in listed companies and easing of banking credit.

“In absence of any major event, (market) participants are keenly awaiting some action from the government after the recent meetings of the finance minister,” said Ajit Mishra, vice president, research at Religare Broking Ltd in New Delhi. - Reuters

11.20 am

Forex market

Huawei decision could make or break currency market mood.

 

Safe-haven currencies such as the yen and Swiss franc were under pressure as expectations policymakers would unleash new stimulus eased immediate concerns about a slowing global economy. The dollar index, which measures the greenback against six major currencies, was marginally higher in Asia at 98.192, close to a two-week high of 98.339 reached on Friday. Read more on the forex market report here

11.05 am

Falling Indian rupee and FPIs

 

The Indian rupee has not been battered as badly as other Asian or emerging market currencies. Aside from the good news that the rupee has not plunged as much as other currencies, Indian investors can also take comfort from the fact that Foreign Portfolio Investors (FPIs) may not push the panic button solely on account of a depreciating rupee (fall in rupee against the USD lowers their dollar returns).

Data compiled by BusinessLine from the year 2000, reveals no direct link between FPI flows and rupee movement. Read more on the link between FPI flows and rupee movement

10.50 am

Sensex jumps 303 points led by bank stocks

The 30-share BSE index Sensex jumps 303.57 points or 0.87 per cent to 37,653.90 led by ICICI Bank and Reliance Industries.

 

The top stocks lending support to the index are Sun Pharma, ICICI Bank, L&T, NTPC and Axis Bank while the stock trading in red were PowerGrid, Yes Bank, Tata Steel, Vedanta and ONGC.

Among the sectoral indices, capital goods and healthcare were the top gainers trading higher by 1.47 per cent. Metal and oil & gas stocks were trading in the negative zone.

In the broader index, healthcare stocks pushed the index higher by 84.50 points or 0.76 per cent to 11,132.30.

The top gainers were Infratel, Sun Pharma, Dr Reddys, IBUL Housing Finance and NTPC while the laggards were YES Bank, GAIL, Tata Steel, Vedanta and Power Grid.

10.35 am

Rupee market

At the interbank foreign exchange, the rupee opened at 71.12.   -  The Hindu

 

The rupee appreciated by 9 paise to 71.05 against the US dollar in early trade, tracking gains in domestic equities and indication of a revival in trade talks between the US and China. At the interbank foreign exchange, the rupee opened at 71.12, then gained momentum and touched a high of 71.05, registering a rise of 9 paise over its previous close. Click here to read more on the local currency market

10.20 am

Global markets

MSCI Asia-Pacific index up 1 per cent. File Photo   -  Reuters

 

Asian stocks tracked the Wall Street rally and found an extra tailwind from a move by China's central bank to change the way a key interest rate benchmark is set, seen by analysts as reducing borrowing costs for companies. In China, the Shanghai Composite Index rose 1.5 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan gained 1 per cent. More on the global market report, read here

10.05 am

Sensex jumps 200 points; Nifty nears 11,100

Domestic equity benchmark BSE Sensex rose over 200 points in early trade tracking gains in index heavyweights RIL, ICICI Bank and Infosys amid positive global cues.

The 30-share index pared some opening gains to trade 238.70 points or 0.64 per cent higher at 37,589.03; and the broader Nifty too rose 64.40 points or 0.58 per cent to 11,112.20 in morning trade.

In the previous session on Friday, the 30-share Sensex settled 38.80 points, or 0.10 per cent, higher at 37,350.33, while the NSE Nifty gained 18.40 points, or 0.17 per cent, to close at 11,047.80.

Top gainers in the Sensex pack included Sun Pharma, TechM, NTPC, L&T, HCL Tech, Kotak Bank, ICICI Bank, TCS, Infosys, Bharti Airtel, ITC and RIL, rising up to 3 per cent. While, Yes Bank, PowerGrid, ONGC, SBI, Tata Steel and Vedanta fell up to 2.27 per cent.

Elsewhere in Asia, Hang Seng, Shanghai Composite Index, Nikkei and Kospi were trading significantly higher in their respective late morning sessions, on rising hopes of stimulus by global central banks to counter economic slowdown.

According to traders, besides positive cues from other Asian markets, domestic investor sentiment was upbeat on expectations of measures from the government to boost growth and revive consumer sentiment.

Meanwhile, foreign portfolio investors sold shares worth a net of Rs 1,339.27 crore on Friday, while domestic institutional investors purchased shares worth Rs 1,058.28 crore, provisional data showed.

On the currency front, the rupee appreciated 8 paise versus the dollar against its previous close to trade at 71.06 in early session.

Brent crude futures, the global oil benchmark, rose 1.09 per cent to trade at 59.28 per barrel. - PTI

9.55 am

Commodities market

Crude oil prices rise.   -  Bloomberg

 

Crude oil prices rose following a weekend attack on a Saudi oil facility by Yemeni separatists and as traders looked for any signs that Sino-US trade tensions could ease. Brent crude was up 64 cents, or about 1.1 per cent, at $59.28 a barrel at 0255 GMT, US crude was up 55 cents, or 1 per cent, at $55.42 a barrel.

Traders will also be looking out for key manufacturing data due later this week from Europe and the US, said Michael McCarthy, chief market strategist, CMC Markets. Read the commodities market report here

9.40 am

Sunteck Realty - Buy

 

The first half of 2019 witnessed a slow recovery in the real estate market, with strict regulatory norms, put in place two years ago, paying off.

For Sunteck Realty, a Mumbai-based real-estate player, favourable location of the properties, ability to command better prices in the ultra-luxury and luxury residential segments and strong financials have helped it tide over rough times and grow revenue. Investors with a two to three-year perspective can buy the stock. Read the stock analysis of Sunteck Realty here

9.25 am

Stocks in focus

The board of CG Power and Industrial Solutions will meet on Monday to consider fourth quarter and year ended March 31, 2019 results. Consequent to delay in finalisation of financial results for FY19, the company is not in a position to finalise the results for the quarter ended June 30, 2019, CG Power said. The respective boards of Industrial Investment Trust, IITL Projects, Kwality and Opto Circuits will meet on Monday to declare the first quarter ended June 2019.

Kridhan Infra’s associate company Vijay Nirman Company Private Limited has secured orders worth ₹145 crore for construction of passenger terminal building, ATC tower and other buildings and miscellaneous works of Goa International Airport and miscellaneous construction works at Hyderabad International Airport. Kridhan Infra currently owns approximately 41 per cent stake in VNC. Shareholders will closely monitor execution of the project.

The ₹100-crore NCD issue with an option to retain oversubscription of up to ₹400 crore from SREI Equipment Finance will open for subscription on Monday and close on September 18. SREI Equipment Finance is a subsidiary of SREI Infrastructure Finance. The highest coupon is 10.75 per cent per annum for all categories of investors for a tenure of five years. SREI Equipment intends to use up to 75 per cent of the net proceeds for lending or repayment of loans.

9.15 am

Opening bell

The 30-share BSE index Sensex zoomed 135.59 points to 37,485.92 against the previous close of 37,350.33 in the opening trade. The 50-share NSE index Nifty opened 52.1 points higher at 11,099.90 against the previous close of 11,047.80

9.10 am

Weekly Trading Guide

SBI (₹290.9)

After tumbling over 21 per cent in five weeks, SBI got a breather last week. However, the broader bearish view is intact. There is room for a further fall. The indicators on the charts are also negative. The 21-day moving average has gone below the 100-day moving average — a bearish signal indicating that the upside could be capped. The₹304-307 will be a key near-term resistance, which can restrict the upside. Any sharp short-covering rally beyond ₹307, though unlikely, may be limited to ₹319 — a key trend resistance level. Immediate support is at ₹280, also substantiated by a rising trend-line in weekly time frame. A break below it can drag SBI to ₹272 or ₹268. The region between ₹272 and ₹268 is a strong medium-term support, which can halt the current fall. A strong bounce from this support zone on short-covering can take SBI up to ₹315 and ₹320. But a decisive break below ₹269 will increase the downside pressure on the stock. This break will increase the possibility of the fall extending to ₹230 over the medium term.

ITC (₹252.9)

ITC tumbled about 4 per cent intraweek but managed to claw back from the low of ₹244.2, recovering most of the loss, and closed 0.5 per cent lower for the week. Immediate resistances are at ₹257 and ₹259, which can be tested in the near term. But a rise beyond ₹259 is less likely. A pull-back from ₹257 or ₹259 can drag the stock lower to ₹245 again. It will also keep the broader downtrend intact. The stock will remain under pressure and can test the crucial long-term support level of ₹240. The current downtrend can halt around ₹240, as a break below this support might not be easy. As such, a fall to ₹240 could be a good buying opportunity. A strong bounce from ₹240 can take ITC higher to ₹260-265. A sideways consolidation between ₹240 and ₹265 is possible before we see a fresh leg of upmove. A strong rise past ₹265 will confirm the trend reversal. It will then increase the likelihood of the stock rallying towards ₹290 and ₹300 over the medium term.

Infosys (₹774.5)

Infosys retains its ₹755-805 sideways range. The stock has been stuck in this range over the last five weeks. Within this band, Infosys fell 2 per cent last week. The near-term outlook continues to remain unclear. A breakout on either side of ₹755 or ₹805 will determine the direction of the next move. However, the bias on the chart is negative. The price action on the daily chart leaves the possibility high of the stock breaking the range below ₹755. A break below ₹755 can take the stock initially lower to ₹750-745. A further break below ₹745 will then increase the likelihood of the stock extending its fall to ₹720 and ₹700 thereafter. The level of ₹700 is a crucial long-term support. A strong break below it will signal a trend reversal. But if Infosys sustains above ₹755 and manages to break the range above ₹805, it will gain fresh momentum. Such a break will keep the overall uptrend intact and indicate the resumption of the same. In such a scenario, Infosys can rise to ₹850 and ₹870 in the coming weeks.

RIL (₹1,278)

RIL surprised with a strong surge last week. The stock opened with a wide gap-up and surged 12 per cent intraweek to make a high of ₹1,304. The stock has reversed lower from the high, giving back some of the gains and closed 10 per cent higher for the week. A few major announcements in the company’s annual general meeting triggered this sharp rally. The strong surge in the past week has wiped out the chances of the fall to ₹1,050-1,030 that we had been expecting for some time. A key support is at ₹1,215 and resistance is at ₹1,300. RIL can consolidate between ₹1,215 and ₹1,300 for some time. A breakout on either side of ₹1,215 or ₹1,300 will then determine the direction of the next move. The sentiment is positive after the outcome of the AGM last week. So, the possibility is high for RIL to breach ₹1,300. Intermediate dips to ₹1,230-1,220 are likely to witness fresh buying interest. A strong break above 1,300 can take RIL initially higher to ₹1,400 and eventually towards ₹1,480 in the coming weeks.

Tata Steel (₹362.8)

Tata Steel tumbled 5 per cent intraweek. However, the stock managed to bounce-back from the low, recovering all the loss and closed on a flat note. The broader downtrend is intact and the stock is likely to remain under pressure. Any intermediate bounce could be capped at the key barrier of ₹387, as fresh sellers are likely to emerge at higher levels. Tata Steel can fall to ₹330-320 in the short term. A corrective rally to ₹350-370 is possible from the ₹330-320 zone. However, the current downtrend which has been in place since 2018 looks strong. It may have the potential to drag Tata Steel lower to ₹250-230. The indicators on the charts are also in favour of this fall. The 21-week moving average is on the verge of crossing below the 200-week moving average. This is a negative signal, indicating that the upside could be limited in the medium term.

The writer is a Chief Research Analyst at Kshitij Consultancy Services

9.00 am

Index Outlook

 

Rising concerns over a slowdown in the domestic economy, muted June quarter corporate earnings and lingering concerns over US-China trade war, kept markets on tenterhook. All eyes are on the big bang stimulus measures that the market is hoping the government may announce.

With the indices range-bound and global indices volatile, investors should tread with caution. Read the Index outlook for the upcoming week here

Published on August 19, 2019