Sensex, Nifty end session at record closing high; auto stocks rally

01 Aug 2017

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3:30 pm Market at Close: Equity benchmark indices ended the session on a strong note, as the market witnessed a surge in the last hour of trade. Indices ended at a record high mark.

The Sensex closed up 60.23 points at 32575.17, while the Nifty ended higher by 37.55 points at 10114.65. The market breadth was negative as 1046 shares advanced against a decline of 1627 shares, while 165 shares were unchanged.

Auto stocks ruled the roost as Maruti Suzuki, Eicher Motors and Hero MotoCorp gained the most, while Indiabulls Housing was also among top gainers. Meanwhile, Lupin, ONGC and Bank of Baroda lost the most on both indices.

3:26 pm Nifty at record high: The 30-shares Sensex was up 112.18 points at 32,627.12, and the Nifty gained 50 points at 10,127.10 despite weak market breadth.

About 1,634 shares declined against 1,023 advancing shares on the BSE.

3:24 pm Resignation: Arvind Panagariya today resigned as the vice chairman of government's think tank Niti Aayog, reports CNBC Awaaz.

3:20 pm Auto sales: Farm equipment maker Escorts today reported a 34.3 percent increase in tractor sales at 5,418 units in July. The company had sold 4,035 units in the same month last year, Escorts said in a BSE filing.

Domestic sales during the month were at 5,275 units as against 3,953 in July last year, a growth of 33.4 percent. Exports were at 143 units last month as against 82 units in the year-ago period, up 74.4 percent, the company added.

3:05 pm Results: Orient Paper turned black in Q1, with profit at Rs 8.1 crore against loss of Rs 4.3 crore in year-ago period.

Revenue grew by 60.9 percent year-on-year to Rs 155.2 crore and operating income stood at Rs 21.1 crore against loss of Rs 7.6 crore.

2:48 pm Market Check: Equity benchmarks remained flat in afternoon, with the Sensex gyrating around 32,500 level ahead of rate decision from Monetary Policy Committee due Wednesday.

The 30-share BSE Sensex was down 26.01 points at 32,488.93 and the 50-share NSE Nifty gained 6.05 points at 10,083.15.

The market breadth remained weak as about three shares declined for every two shares rising on the BSE.

2:30 pm Earnings Estimates: State-run Power Grid Corporation of India's first quarter profit is seen rising 20 percent year-on-year to Rs 2,058 crore and revenue may increase 16 percent to Rs 7,108 crore.

Operating profit is likely to increase 14.5 percent to Rs 6,208 crore but margin may contract 120 basis points to 87.3 percent compared with year-ago quarter, according to average of estimates of analysts polled by CNBC-TV18.

Company is expected to report asset capitalisation in the range of Rs 8,000-9,000 crore for the quarter. Transmission segment revenues are expected to exhibit 23 percent YoY growth.

2:12 pm Marico Q1 misses estimates: Marico's results were a miss on all estimates after it posted a 12 percent fall in its June quarter net profit at Rs 236 crore against Rs 268 crore posted during the same period last year.

The FMCG major also saw an almost 4 percent fall in its consolidated revenue for the quarter under review at Rs 1,692.4 crore against Rs 1,754.3 crore posted during the June quarter in 2016. The revenue dip could have been dragged by de-growth of 9 percent in its volumes.

The consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) too fell over 13 percent to Rs 324.3 crore. The company had posted operating revenue of Rs 374 crore in the same quarter last year, while the operating margin was also lower at 19.3 percent against 21.3 percent year on year.

Reacting to the results, the stock fell nearly 5 percent intraday as investors turned cautious on the stock.

1:55 pm Auto sales: Mahindra & Mahindra's July sales matched analysts' expectations as total sales grew by 6.25 percent to 60,579 units compared with 57,011 units sold in same month last year.

Auto sales during the month grew by 6 percent year-on-year to 41,747 vehicles while exports dropped sharply by 52 percent to 1,985 units, the company said in its filing.

Passenger vehicle sales registered a 21 percent growth at 20,962 units and utility vehicle sales 20 percent at 19,152 units in July on year-on-year basis.

Commercial vehicle sales also grew by 14 percent but 3-wheeler sales declined 21 percent to 3,777 units in the month gone by.

M&M said tractor sales in July increased 7 percent to 18,832 units compared with 17,553 units sold in corresponding month of previous year.

1:40 pm Earnings Estimates: JSW Steel's first quarter consolidated profit is seen falling 53 percent year-on-year to Rs 525 crore, dented by weak operational performance but revenue may grow 13.7 percent to Rs 14,655 crore due to higher volumes.

According to average of estimates of analysts polled by CNBC-TV18, operating profit is likely to decline 22.9 percent to Rs 2,520 crore and margin contracted by 818 basis points to 17.2 percent in Q1.

Sales volume is expected to grow 10 percent to 3.62 MT but could be impacted by GST-led de-stocking.

Analysts expect blended realisations to decline by Rs 1,500 per tonne QoQ led by lower export prices and decline in domestic flat product prices. Modest increase in long product prices may only be a partial relief.

1:26 pm Market Check: Benchmark indices remained rangebound in afternoon trade as investors await the interest rate decision from monetary policy committee due Wednesday.

The 30-share BSE Sensex was down 0.38 points at 32,514.56 and the 50-share NSE Nifty rose 8.30 points to 10,085.40.

About three shares declined for every two shares rising on the BSE.

The Nifty Auto index gained more than a percent after steady sales data in July, the first month of GST rollout.

1:20 pm Earnings: PC Jewellers today posted 27.42 percent jump in standalone net profit at Rs 135.83 crore for quarter ended June 30 on strong sales.

Net profit stood at Rs 106.59 crore in the same quarter of 2016-17 fiscal, it said in a BSE filing.

Net income grew 27.79 per cent to Rs 2,140.03 crore in April-June quarter of 2017-18 fiscal from Rs 1,674.60 crore in the year-ago period.

Revenue from domestic sales rose to Rs 1,382.55 crore from Rs 1,049.79 crore, while income from exports improved to Rs 735.99 crore from Rs 614.68 crore in the said period.

1:00 pm Auto sales: Tata Motors reported healthy and better-than-expected sales growth in July, the first month of GST rollout. The 7 percent year-on-year growth in total sales was driven by domestic commercial as well as passenger vehicles.

"Passenger and commercial vehicle total sales (including exports) in July 2017 were at 46,216 vehicles, higher by 7 percent over 43,160 vehicles sold in July 2016," the company said in its filing.

Motilal Oswal had expected the company to post 4 percent degrowth in total sales while Nomura estimated growth at 1.9 percent for the month.

Tata Motors said domestic sales of commercial and passenger vehicles for July 2017 were at 42,775 units, a growth of 13 percent over 37,789 units sold in same month last year.

12:49 pm Earnings: Torrent Power reported solid growth in earnings led by operational and revenue performance.

Consolidated profit growth in Q1 was more than 4-fold at Rs 203 crore from Rs 45.6 crore YoY.

Revenue grew by 18.4 percent to Rs 3,059 crore while EBITDA surged 53 percent to Rs 795 crore and margin expanded by 600 basis points to 26 percent YoY.

12:41 pm Europe opening: European markets opened slightly higher on Tuesday morning as investors reacted to earnings reports and digested further upheavals at the White House.

The pan-European Stoxx 600 edged 0.26 percent higher during early morning deals with almost all sectors and major bourses in positive territory.

12:25 pm Auto sales: Eicher Motors said Royal Enfield sales grew by 21 percent to 64,459 units in July compared with 53,378 units sold in same month last year.

Exports increased 4 percent to 1,302 units from 1,250 units on year-on-year basis.

12:10 pm USFDA Approvals: Zydus Cadila has received final approval from the US Food and Drug Administration to market Temozolomide capsules in strengths of 5 mg, 20 mg, 100 mg, 140 mg, 180 mg and 250 mg.

Temozolomide capsules is a chemotherapy drug used in the management of brain tumors.

The sale of Temozolomide is estimated at USD 100.4 million, as per IMS Health.

The Group also received final approval from the USFDA to market Nadolol tablets in strengths of 20 mg, 40 mg and 80 mg.

Nadolol is used in management of hypertension (high blood pressure) and angina pectoris (chest pain).

The sale of Nadolol is estimated at USD 109.8 million, as per IMS Health.

11:57 am Market Check: Equity benchmarks continued to consolidate in late morning trade as investors looked for interest rate decision from two-day Monetary Policy Committee meeting that started today.

The 30-share BSE Sensex was down 14.62 points at 32,500.32 and the 50-share NSE Nifty rose 2.30 points to 10,079.40.

The market breadth was weak. About 1,264 shares declined against 1,073 advancing shares on the BSE.

The Development Bank of Singapore expects Reserves Bank of India to cut its policy rates by 0.25 percent on August 2.

Domestic factors are likely to be given a higher weightage in swaying the decision, compared to global factors, DBS said.

At home, Consumer Price Index (CPI) inflation has undershot official projections consistently for the past six- seven months, with the June print slipping below the targeted 2-6 per cent range, it noted.

Food prices have corrected sharply, in particular the routinely volatile pulses and vegetables.

11:38 pm Auto sales: Ashok Leyland's total sales in July grew by 14 percent year-on-year to 11,981 units from 10,492 units, driven by broadbased growth.

Ligth commercial vehicle sales increased 28 percent to 2,955 units while medium & heavy commercial vehicle sales grew by 10 percent to 9,026 units.

11:20 am Buzzing: Glenmark Pharmaceuticals shares gained as much as 2.65 percent after reporting positive data in its Phase 2a study of GBR 830 for the treatment of patients with atopic dermatitis.

GBR 830 is an investigational, anti-OX40 monoclonal antibody, in atopic dermatitis, a common and serious chronic skin disease.

This Phase 2a double-blind, placebo-controlled study, randomised 62 patients (3:1) with moderate-to-severe atopic dermatitis to evaluate the safety, biological and clinical activity, and pharmacokinetics of GBR 830 (relative to placebo) over 12 weeks, the global pharmaceutical company said in its filing.

Based on the results of this Phase 2a study, Glenmark said it is firmly committed to advancing GBR 830 for patients with AD and plans to initiate a Phase 2b trial in the first half of calendar year 2018.

11:05 am Factory data: Indian factory activity plunged last month and had its deepest contraction in more than nine years after Prime Minister Narendra Modi's new tax policy severely hurt output and demand, a survey showed.

The Nikkei/IHS Markit Manufacturing Purchasing Managers' Index fell to 47.9 in July from June's 50.9, its first reading below the 50 mark that separates growth from contraction since December and its lowest reading since February 2009.

A Reuters poll predicted a modest July dip to 50.8. But July brought the biggest month-on-month decline since November 2008, just after the collapse of Lehman Brothers triggered a financial crisis and brought on a global recession.

An output sub-index fell to 46.3, its lowest since early 2009, from 51.7 in June, while contractions were reported across all major sub-indexes in the survey, including new orders, purchasing activity and employment.

10:49 am Market Check: Equity benchmarks continued to be volatile in morning trade as investors awaited the interest rate decision from two-day Monetary Policy Committee meeting that started today.

The 30-share BSE Sensex was down 5.53 points at 32,509.41 and the 50-share NSE Nifty rose 4.10 points to 10,081.20.

The broader markets outperformed benchmarks, with the BSE Midcap up 0.4 percent. The market breadth was positive as about 1,122 shares advanced against 1,028 declining shares on the BSE.

10:25 am Auto sales: India's largest car maker Maruti Suzuki reported solid growth of 20.6 percent in July sales, which was far ahead of analysts' estimates.

"Maruti sold a total of 1.65 lakh units in July 2017, growing 20.6 percent over 1.37 lakh units sold in the same month of last fiscal," the passenger vehicles maker said in its filing.

Domestic sales grew by 22.4 percent year-on-year to 1.54 lakh units while exports grew by 0.1 percent to 11,345 units in July.

The stock price touched a fresh record high of Rs 7,920, up 2.75 percent intraday Tuesday.

9:56 am IPO opens: Cochin Shipyard, India's largest public sector shipyard, opened for subscription. The company intends to raise about Rs 1,400-1,500 crore through an initial public offering (IPO).

It plans to use the net proceeds for setting up of dry dock within the existing premise of the company (Rs 443 crore), setting up of an international ship repair facility at Cochin Port Trust area (Rs 229.5 crore) and general corporate purposes.

As of June 30, 2017, its total cash and bank balance stood at Rs.2,003 crore, while it had fund-based indebtedness in the form of tax-free infrastructure bonds amounting to Rs 123 crore.

9:45 am FII View: Neelkanth Mishra of Credit Suisse said all the 7 percent YoY spending growth budgeted in FY18 Budget is over.

Growth for the rest of the year should be flat YoY, he added.

Comparisons of tax versus Budget or YoY growth will be tougher from now, bringing some fiscal uncertainty, he feels. Even the feed into GDP will be disrupted, according to Mishra.

9:40 am Buzzing: Shares of Vascon Engineers advanced more than 4 percent in the early trade as the company received order worth Rs 80 crore.

"The company has received letter of award from Transcon Sheth Creators, a domestic entity, for the work of civil construction, finishing, electrical and fire fighting work of residential building No 3 and 4 (Ground plus 23 Floors) in Malad (W) amounting to Rs 80.41 crore," as per company release.

The work has to be completed within 24 months from the date of receipt of work order.

The meeting of board of directors of company is scheduled on August 10 to consider, approve and take on record the unaudited financial results for the quarter ended June 30, 2017, along with other matters.

9:25 am Buyback: Share price of Sobha gained 3 percent in morning trade as the company is going to consider buyback of shares.

A meeting of the board of directors of the company is scheduled on August 04, to consider and take on record, the unaudited financial results of the company for the quarter ended June 30, 2017.

The board will also consider a proposal for buyback of equity shares of the company, for an aggregate amount up to Rs 62 crore.

9:15 am Market Check: Equity benchmarks opened moderately higher, with the Nifty inching towards 10,100 level as investors look for two-day monetary policy committee meeting that will being today.

The 30-share BSE Sensex was up 27.90 points at 32,542.84 and the 50-share NSE Nifty gained 13.20 points at 10,090.30.

Glenmark Pharma gained 1.6 percent but Biocon fell nearly 2 percent.

The Nifty Midcap was up 0.4 percent. About two shares advanced for every share falling on the NSE.

Container Corporation, BEL, JK Paper and Trent gained up to 10 percent while Siemens, Torrent Pharma, Reliance Power, Peninsula Land and Godrej Consumer were under pressure.

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