Sensex ends up 261 points as global peers rally amid rising trade war fears

Among European markets, Britain's FTSE was trading higher by 1.2 percent while Germany's DAX and France's CAC gained 0.4 percent each at the time of writing this article.

Oil prices also inched up due to a fall in US crude inventories and the loss of storage capacity in Libya. Investors also looked cautious ahead of OPEC meeting to decide production policy later in the week. Brent crude futures were at $75.57 a barrel, up 0.65 percent.  

Market Closing: Benchmark indices rebounded sharply following rally in global peers amid heightened fears of trade war between US and China.

The Sensex rallied 260.59 points to 35,547.33 and the Nifty rose 61.50 points to 10,,772 amid balanced market breadth.

Reliance Industries, HDFC, HDFC Bank, Kotak Mahindra Bank, IndusInd Bank, Yes Bank and Tata Steel were top gainers while UPL, HPCL and IOC were under pressure.

Nifty Midcap index rose over 85 points.

Jai Corp, Rain Industries, Vakrangee, CG Power, JSPL, NIIT Technologies, Tata Elxsi, M&M Financial, DHFL, Bata India, Just Dial, Exide Industries and Delta Corp gained 1-11 percent.

InterGlobe Aviation, Liberty Shoes, Lemon Tree, Sun TV, Jet Airways and Tata Global Beverages fell 2-8 percent.

Fundraising: Godrej Agrovet has received approval from shareholders for increasing in borrowing limit to up to Rs 2,500 crore.

Pledge of Shares: JSW Steel promoter has created pledge on 32 lakh shares on June 20 and JSW Energy promoter created pledge on 20 lakh shares on June 18.  

Results Date: Bajaj Auto said the board of directors will meet on July 20 to consider the unaudited financial results for the first quarter ending June 30, 2018.

The trading window for dealing in the securities of the company would remain closed from July 1 to 22 (both days inclusive) for the directors/officers/designated persons of the company, it added. 

Market Update: Benchmark indices traded at day's high following the rally in global peers amid heightened fears of trade war between the US and China.

The Sensex rose 246.52 points to 35,533.26 and the Nifty gained 62.90 points at 10,773.40.

Reliance Industries, HDFC Bank, HDFC, IndusInd Bank, Kotak Mahindra Bank, Vedanta, M&M, Yes Bank and Maruti Suzuki rallied 1-2 percent while IOC, UPL, HPCL, ONGC and HCL Technologies fell 1-3 percent followed by ITC (down 0.75 percent).   

Order Win: JTL Infra stock price rallied after the company received a prestigious order for supplying 'solar module mounting galvanized steel structure' to L&T for their 100MW Solar Power PV project at Bhadla-Phase III Solar Park in Rajasthan. 

Tata Communications in focus: Digital infrastructure provider Tata Communications is selected by global OTT solutions provider BlaBla Connect to underpin a first-of-its-kind OTT service that integrates its existing mobile wallet and voice services together with borderless connectivity.

As a result, BlaBla Connect subscribers will enjoy peace of mind while on the move through seamless access to over 64 million secure hotspots in over 160 countries – integrated through one mobile application, the company said.

Buzzing: Bank of Maharashtra’s shares fell 7 percent intraday after a member of its senior management was arrested. 

The lender’s Chairman and Managing Director (CMD) Ravindra Marathe along with five others have been arrested for extending fraudulent loans to Pune-based DSK Group, police said. 

Besides Marathe, BoM Executive Director Rajendra Gupta, DSK chartered accountant Sunil Ghatpande and DSK VP Engineering Department Rajiv Newaskar were arrested from Pune while ex-CMD Sushil Muhnoot was arrested from Jaipur. The bank’s Zonal Manager Nityanand Deshpande was arrested from Ahmedabad, the police said in a statement. 

Marathe was arrested for allegedly misusing his power in sanctioning loans to shell companies. The bank had given loan on the same property three to four times, sources said.  

Buzzing: Shares of InterGlobe Aviation fell around 6 percent during the day as investors turned cautious of summons by investigating agencies to its top management.

Source told CNBC-TV18 that the Enforcement Directorate has summoned the top management of the carrier in a case related to violations related to foreign exchange management act (FEMA).

Further, the report added that the agency has been investigating the alleged violation by IndiGo for the last three years.

Dilip Buildcon in Focus: The company said it has completed its project four laning of Guna-Biaora section of NH-3 in Madhya Pradesh under NHDP Phase-IV to be executed on BOT (Toll) mode on DBFOT basis awarded by the National Highways Authority of India.

The provisional completion certificate has been issued and declared fit for entry into commercial operation as on June 18, 2018. "Consequently the company is entitled for the toll collection due to early completion of the project .i.e 261 days prior from the scheduled completion date," it said.

The board of directors of Bajaj Finserv will meet on July 19, 2018 at Pune to consider, the unaudited financial results for the first quarter and three months ending on June 30, 2018.  

Buzzing: Shares of Unichem Laboratories added 9 percent as company entered in to settlement agreement with Eli Lilly.

The company has entered into a settlement agreement with Eli Lilly & Company and ICOS Corporation to resolve their patent litigation in the United States District Court for the District of New Jersey regarding company's abbreviated new drug application for generic tadalafil (Cialis).

Under the settlement agreement, company expects to launch its generic tadalafil product in the United States on or not before March 26, 2019 under certain circumstances.

Brokerage IIFL has maintained buy rating on Motherson Sumi Systems with a price target of Rs 425 per share.

IIFL expect significant ramp-up over the next 12 months from new plants. However, the high level of automation implies significant operating leverage.

The significant growth and margin improvement at SMP will be key driver, it added  

Board Meet: Zuari Agro Chemicals said a meeting of board of directors will be held on June 25 to approve the issuance of securities by way of a rights issue; and issuance of foreign currency convertible bonds (FCCBs).

Order Win: Bharat Heavy Electricals has bagged two major orders for emission control equipment from Telangana State Power Generation Corporation Ltd (TSGENCO).

"Valued at Rs 1,000 crore, the orders involve supply and installation of flue gas desulphurization (FGD) systems for control of SOx emissions at TSGENCO's 1x800 MW Kothagudem Thermal Power Station (TPS) and 4x270 MW Bhadradri TPS in Telangana," the company said in its filing.

The order for Bhadradri TPS also includes modification in boiler and electroStatic precipitators (ESPs) to meet the revised emission norms.

BHEL is presently executing these projects on engineering, procurement, construction (EPC) basis. 

Market Update: The market traded at day's high in afternoon following recovery in the global peers despite rising fears of a trade war between the world's largest economies US and China.

The 30-share BSE Sensex rallied 225.30 points to 35,512.04 and the 50-share NSE Nifty gained 54.20 points at 10,764.70, supported by Reliance Industries and banking & financials.

The Nifty Midcap index slightly underperformed frontliners, rising 0.4 percent on positive market breadth. About 1,267 shares advanced against 1,110 declining shares on the BSE.

Brent crude futures extended gains on fall in US crude inventories and the loss of storage capacity in oil producer Libya, rising 0.92 percent to $75.77 a barrel. 

Macquarie on auto sector: Shares of automobile companies have not had a great year so far, falling around 7 percent on a year to date basis.

But, going forward, global research firms such as Macquarie are upbeat on the sector, citing multiple factors.

For instance, Macquarie is expecting rural sentiment to improve based on normal monsoon forecast. Along with it, implementation of pay commission recommendations by states will also drive sales growth, it said.

Having said that, it also observed that auto stocks are trading at a premium to historical valuations.

Speaking on specific stocks, it said that there is a large market opportunity in premium bikes for Eicher Motors and growth momentum could continue in this case.

In case of Maruti, it said that the firm is best placed on improving macros and looks poised to strengthen its market leadership.

Meanwhile, Motherson Sumi remains a unique play on fastest growing car market as well as growth themes. 

Europe Update: European markets opened higher, despite heightened fears of a full-blown Sino-US trade war.

Britain's FTSE gained 0.75 percent while Germany's DAX rose half a percent and France's CAC climbed 0.3 percent.  

Market Update: The market remained strong in afternoon as Asian counterparts extend rally with Japan's Nikkei, Hong Kong's Hang Seng and South Korea's Kospi rising a percent each after traders digest elevated fears of a trade war between the world's largest economies US and China.

The 30-share BSE Sensex rallied 200.86 points to 35,487.60 and the 50-share NSE Nifty gained 50.40 points at 10,760.90, backed by index heavyweight Reliance Industries and banking & financials.

IPO: Kolkata based biscuit maker Anmol Industries has filed the draft red herring prospectus with capital market regulator Securities and Exchange Board of India (SEBI) for its initial public offering.

The public issue consists of offer for sale of Rs 750 crore by Baijnath Choudhary & Family Trust (Rs 720.4 crore), SKG Land Developers LLP (Rs 22.5 crore), Delta Nirman LLP (Rs 4 crore), Anmol Hi-Cool LLP (Rs 2.5 crore) and Puneet Mercantiles LLP (Rs 6 lakh).   

Buzzing: Credit Suisse has upgraded the rating on Bajaj Auto to Outperform with a target price at Rs 3,360 per share, implying a 18 percent potential upside. The stock price rose a percent intraday.

The research house also raised its earnings estimate by 4-6 percent for FY19-20.

The stock looks relatively better amongst 2-wheelers, the global brokerage firm feels. 

Market Update: The market extended gains on further recovery in Asian counterparts that were hit by elevated fears of a trade war between the US and China.

Index heavyweight Reliance Industries and banking & financials stocks pushing the market higher.

Shreyas Shipping in Action: Shreyas Shipping informed exchanges that the company has taken a delivery of multipurpose vessel M.V SSL Krishna.

With this acquisition, the total fleet strength of the company reached 14 vessels. 

Avanti Feeds in Focus: The company has fixed June 27 as the record date for the purpose of ascertaining the eligibility of the members for sub-division of equity shares from face value of Rs 2 each to Re 1 each and issue of bonus equity shares of Re 1 each in the ratio of 1:2.

Crude Update: Oil prices recovered some day-earlier losses in Asia, supported by a drop in US commercial crude inventories and the loss of storage capacity in oil producer Libya.

US crude inventories fell by 3 million barrels to 430.6 million barrels in the week to June 15, according to American Petroleum Institute (API) in a weekly report on Tuesday.

Brent crude futures rose 0.45 percent, to $75.42 per barrel, compared with their last close on Tuesday. US West Texas Intermediate (WTI) crude futures gained 0.74 percent, to $65.55, reports Reuters.

Market Update: Benchmark indices extended recovery in morning with the Sensex rising 175.58 points to 35,462.32, backed by Reliance Industries that gained 2 percent.

HDFC and HDFC Bank also pushed the market higher, rising 0.6 percent each.

The 50-share NSE Nifty rose 46.70 points to 10,757.20 while the Nifty Midcap index climbed half a percent.

BHEL in focus: Nomura has upgraded state-owned power equipment maker BHEL to Neutral with a target price at Rs 86 per share as the stock price seems to have bottomed out.

The company might witness modest growth & profitability recovery, the global research house said, adding its executable order book has improved.

Market Update: The market continued to trade higher with Sensex and Nifty Bank indices rising around 100 points, following recovery in the Asian peers barring Shanghai.

The China's Shanghai Composite slipped more than half a percent as concerns over a looming trade war between the world's two largest economies continued to linger. However, other Asian peers like Hong Kong's Hang Seng. Japan's Nikkei and South Korea's Kospi gain 0.5-1 percent.

Market Outlook: India is likely an outperformer even as absolute returns are capped by a tepid global equity market outlook, global investment bank Morgan Stanley said in a note.

Improving growth, reasonable largecap valuations and a low beta are up against an election year, rising oil prices and higher yields, it said.

The global investment bank prefers largecaps over midcaps. Morgan Stanley is positive on banks (private corporate and retail), discretionary consumption, industrials, and domestic materials, while avoiding healthcare, staples, utilities, global materials and energy.

Morgan Stanley has a target of 36,000 on the BSE Sensex for June 2019 and this is under the base case scenario which would mean that the index would trade at just under 16x one-year forward P/E, below its historical average.

Market Update: Benchmark indices continued to trade higher following the recovery in Asian peers that were traded sharply lower in previous session due to elevated trade tensions between world's largest economies US and China.

The 30-share BSE Sensex rose 77.84 points to 35,364.58 and the 50-share NSE Nifty gained 19.20 points at 10,729.70.

Anchor Investors' investment: Chemicals firm Fine Organic Industries raised Rs 180 crore from anchor investors, ahead of its initial share sale today.

The company has allotted 22,99,497 equity shares to 15 anchor investors at Rs 783 per scrip, garnering Rs 180.05 crore, Fine Organic Industries said in a statement.

Among the anchor investors are Goldman Sachs India, HDFC Small Cap Fund, SBI Magnum Comma Fund, DSP BlackRock Equity & Bond Fund and IDFC Equity Opportunities Fund - Series 5.

The price band for the initial public offer (IPO), which will close on June 22, has been fixed at Rs 780 to Rs 783 per equity share.

Buzzing: Shares of Wheels India gained as much as 10 percent as investors cheered the news of bonus issue in the offing.

The company, in a filing to the exchanges, said that a Board meeting is scheduled for Friday, June 22, 2018.

“We hereby give prior intimation that the Board of Directors of the firm may consider bonus shares in the aforesaid meeting,” the company said in the statement which was filed with the bourses.

As Railways' consultancy firm RITES hits the primary market on Wednesday, brokerages largely recommend subscribing to the issue, citing multiple reasons. The firm opened its initial public offering (IPO) for subscription with a price band of Rs 180-185 apiece.

Market Outlook: The Indian market has broken the trend of underperformance on a relative basis and is holding up pretty well amid the emerging market sell-off, Laurence Balanco of CLSA told CNBC-TV18.

He feels the uptrend will resume as long as Nifty holds above 50-DMA (10,653). He has retained his Nifty Bank target at 31,000.

Balanco thinks pharma space has made a base and might see an upswing in near term.

Dollar strength has been negative for emerging markets, he said.

Buzzing: Shares of Cipla gained as much as 3 percent as company received final approval for Efavirenz tablets from USFDA.

The company has received final approval for its abbreviated new drug application (ANDA) for Efavirenz tablets 600mg from the (USFDA) United States Food and Drug Administration.

Efavirenz tablets is AB-rated generic therapeutic equivalent version of Bristol-Myers Squibb Pharma Company’s, Sustiva.

It is indicated in combination with other antiretroviral agents for the treatment of human immunodeficiency virus type 1 infection in adults and in pediatric patients at least 3 months old and weighing at least 3.5 kg.

Market Update: The market traded higher after two-day losses, as traders digested lingering US-China trade war fears.

The 30-share BSE Sensex rose 114.31 points to 35,401.05 and the 50-share NSE Nifty gained 32.80 points at 10,743.30. More than two shares advanced for every share falling on the BSE.

Rupee Trade: The Indian rupee rebounded in morning on Wednesday, trading 25 paise higher at 68.13 against the dollar.

On Tuesday, the currency fell 40 paise to 68.38 against the dollar on sustained demand for the American currency from importers and banks amid lower local equities.

Market Opening: Benchmark indices rebounded after two-day fall on US-China trade war tensions.

The 30-share BSE Sensex rose 102.01 points to 35,388.75 and the 50-share NSE Nifty gained 37.70 points at 10,748.20.

Cipla, Bharti Airtel, M&M, Axis Bank, Reliance Industries, Dr Reddy's Labs, GAIL and Maruti Suzuki are early gainers.

Power Grid and UltraTech Cement are under pressure.

The Nifty Midcap index gained 80 points and Nifty Bank rose 68 points.

Strides Shasun, Prestige Estates, Vakrangee, Brigade Enterprises, Bhansali Engineering, GM Breweries, Mishra Dhatu, Wheels India, Alok Industries, Just Dial, Opto Circuits, Andhra Bank and Canara Bank gained up to 7 percent.

Bajaj Hindusthan, CG Power, Ruchi Soya and Jaiprakash Associates are under pressure.

Market Pre-Opening: Benchmark indices rebounded in pre-opening amid ongoing US-China trade tensions.

The 30-share BSE Sensex rose 102.67 points to 35,389.41 and the 50-share NSE Nifty gained 16.50 points at 10,727.

Market Outlook by ICICI Securities: Equity benchmarks extended profit booking weighed by weak global cues on Tuesday. 

The price action formed a long bear candle carrying lower high-low, as downward momentum accelerated on the breach of last week’s low (10,755). As discussed earlier, the lack of faster retracement on either side makes us believe that Nifty would extend ongoing consolidation in the range of 10,930-10,650 over next couple of weeks. In coming sessions, we expect Nifty to find support near key value area of 10700 -10650 which should be used as an incremental buying opportunity amid stock specific action. We believe, this consolidation would form a higher base formation, which would set the stage for next leg of up move towards 10,930, as it is confluence of:

80% retracement of major decline seen in February-March (11,172 – 9,952), at 10,927

May’s high of 10,929

The secondary phase of correction is a integral part of the primary bull trend. We believe, investors should avoid creating aggressive short position at current level (as Stochastic oscillator is approaching oversold territory) and capitalize any dip towards 10,650 to accumulate quality stocks in a staggered manner, as the support is placed near key value area of 10,650, as it is confluence of:

placement of upward sloping trend line drawn adjoining 9,952– 10,418 around 10,650

61.8% retracement (10,551- 10,893) is placed around 10,680.