Nifty closes Day 1 of July series above 10,700, Sensex zooms 386 points on global cues

29 Jun 2018

Global Update: European markets traded higher following gains in Asia and on Wall Street, and after European Union leaders reached a tentative agreement on migration, though the underlying sentiment remained soured due to ongoing trade tensions between US and China. France's CAC and Germany's DAX rose over a percent while Britain's FTSE was up 0.9 percent at the time of writing this article.

Asian shares closed higher on last trading day of the quarter with China recovering further from recent sharp fall amid trade tensions. China's Shanghai Composite rose 2.2 percent and Hong Kong's Hang Seng rallied 1.6 percent while South Korea's Kospi gained 0.5 percent and Japan's Nikkei bounced back from intraday low to close 0.15 percent higher.

Market Update: The market reversed Thursday's losses and ended the first day of July series on a strong note, backed by positive global cues. All sectoral indices ended in the green with FMCG and Metal leading the charge with 2-3 percent gains.

The 30-share BSE Sensex rose 385.84 points or 1.10 percent to 35,423.48 and the 50-share NSE Nifty gained 125.20 points or 1.18 percent at 10,714.30, driven by Reliance Industries, L&T, HDFC, ITC, Titan Company, Infosys and ICICI Bank.

The Nifty Midcap index also participated in the rally, rising nearly 2 percent on strong market breadth.

IDBI Bank was the top midcap gainer, up 10 percent after sources told CNBC-TV18 that insurance regulator IRDAI is likely to clear the deal between the bank and Life Insurance Corporation of India.

NTPC acquires majority stake in 2 power generating company: NTPC has acquired 27.36 percent equity of Bihar State Power Generation Co (BSPGCL) in Kanti Bijlee Utpadan Nigam (KBUN) which owns 610 MW Muzaffarpur Thermal Power Station and 50 percent equity of BSPGCL in Nabinagar Power Generating Company (NPGC) which is developing 1980 MW Nabinagar Super Thermal Power Project in district Aurangabad, Bihar.

With this acquisition, KBUN and NPGC are now wholly owned subsidiaries of NTPC.

At 15:02 hrs NTPC was quoting at Rs 158.25, up Rs 2.20, or 1.41 percent.

Buzzing: Shares of IDBI Bank gained 12 percent as company clarified about LIC planning to inject Rs 13,000 crore in the company.

The bank has clarified that there is no such discussion has taken place in the board of IDBI Bank about LIC plan to inject Rs 13,000 in to the bank, as per bank release.

MRPL to consider preferential issue of shares: Shares of Mangalore Refinery and Petrochemicals (MRPL) added 4 percent ahead of board meeting to consider preferential issue of shares.

A meeting of the board of directors of the company has been scheduled on July 2 to recommend a proposal for preferential issue of shares to enhance public shareholding upto 25 percent as per SEBI directives, to the shareholders in the ensuing AGM.

Buzzing: Cyient Solutions & Systems, a subsidiary of Cyient has been granted Industrial License for the manufacture, assembly, integration, testing, maintenance, repair and overhaul of unmanned aerial systems, PODS, control systems, power plants, accessories and parts thereof formilitary use, by the DIPP, Ministry of Commerce & Industry.

At 14:37 hrs Cyient was quoting at Rs 756.70, up Rs 9.90, or 1.33 percent.

Market Update: Bulls are back at Dalal Street as the 30-share BSE Sensex rallied 371.02 points or 1.06 percent to 35,408.66, backed by Reliance Industries (up 2.93 percent), L&T (2.68 percent), ITC (1.69 percent), HDFC (0.92 percent), HUL (2.37 percent), Titan Company (3.72 percent), Yes Bank (3.51 percent), and ICICI Bank (1.42 percent).

The 50-share NSE Nifty reclaimed 10,700 levels, rising 116.30 points or 1.10 percent to 10,705.40 while all sectoral indices traded in the green.

The Nifty Midcap index rose 1.6 percent. About 1,721 shares advanced against 715 declining shares on the BSE.

Buzzing: Shares of Gallantt Ispat surged 5.5 percent as company approved sub-division of stock price.

The company board at its meeting held on June 29 considered and approved the proposal of sub-division (split) of equity shares of the company from the existing face value of Rs 10 per equity share to face value of Re 1 per equity share.

The rationale behind the split is to improve the liquidity of equity shares with higher floating stocks and to make the equity shares more affordable to the investors.

Market Update: Benchmark indices extended rally in the afternoon with the Sensex rising 348.78 points or 1 percent to 35,386.42 and the Nifty gaining 107.40 points or 1.01 percent at 10,696.50, tracking global uptrend.

Impact of Rupee: Karan Mehrishi, Lead Economist at Acuite Ratings and Research said

The rupee has been one of the worst performing currencies among peers. Against the USD, it has depreciated by 6.6 percent in calendar year 2018 and 8 percent, Year to Date (YTD). Adding to our concern is the increasingly hawkish Federal Reserve, which has now initiated a reversal of the Quantitative Easing (QE) – marking an end to global easy money.

The impact of the capital flight will be seen in this year’s Capital Account. With volatile commodity prices playing havoc with the import bill, we reckon that the situation will worsen at the trade front as well.

We are expecting the current account deficit to peg at 2.2 percent of GDP (30 bps higher than previous year). Our estimate for the Rupee relative performance to the USD suggests an upper bound of 70 by Q3 FY19. An improvement can be foreseen in calendar year 2019.

Rupee Update: The Indian rupee recovered sharply in afternoon, rising 42 paise to 68.37 against the dollar on fresh selling of the American currency by banks and exporters.

Strong trade on the domestic equity market also propped up the rupee.

Market Update: The market is trading at day's high following strong trend in global stocks after EU leaders reached tentative agreement on migration, although underlying market sentiment was soured by concerns over ongoing global trade tensions. European markets tradef higher by a percent each.

The 30-share BSE Sensex rallied 305.42 points or 0.87 percent to 35,343.06 and the 50-share NSE Nifty rose 96.80 points or 0.91 percent to 10,685.90. About three shares advanced for every share falling on the BSE.

The Nifty Midcap continued to trade higher by more than a percent.

Listing: Railways consultancy firm RITES, the first state-owned firm to hit the IPO market in the current fiscal, is going to list its equity shares on the BSE and NSE on Monday, July 2, 2018.

The company after consultation with book running lead managers has fixed final issue price at Rs 185 per share.

Last week the Rs 466-crore initial public offer had garnered strong investor demand, with the issue getting oversubscribed 67.24 times during June 20-22.

The category set aside for qualified institutional buyers (QIBs) was subscribed 71.72 times, non-institutional investors 194.56 times and retail investors 15.74 times.

Settlement Agreement: Reliance Infratel and its minority shareholder HSBC Daisy Investments (Mauritius) today submitted final consent terms of their settlement before NCLAT over sale of tower and fibre asset.

Following this, the National Company Law Appellate Tribunal (NCLAT) bench headed by Chairman Justice S J Mukhopadhaya disposed of the appeal filed by the Reliance Communications group firm.

The consent term between the parties was signed on June 15, 2018, informed senior advocate Salman Khursheed appearing for Reliance Infratel, the tower unit of Reliance Communications.

The Reliance Communications group firm was also backed by State Bank of India at NCLAT in this, reports PTI.

Listing: Chemical manufacturer Fine Organic Industries is set to debut on bourses on July 2. The issue price is fixed at higher end of price band of Rs 780-783 per share.

The Rs 600-crore initial public offer was oversubscribed by 8.99 times during June 20-22, 2018.

The reserved portion of qualified institutional buyers (QIBs) portion was subscribed 12.86 times, non-institutional investors 21.01 times and retail investors 1.62 times.

Market Update: The market continued to trade strong in afternoon as the Nifty is inching towards 10,700 levels, driven by oil, FMCG, infra, metals and select banks stocks.

The 30-share BSE Sensex rallied 298.81 points to 35,336.45 and the 50-share NSE Nifty rose 96.70 points to 10,685.80 while the Nifty Midcap index gained more than a percent.

Reliance Industries (up 2.7 percent), L&T (2.3 percent), ITC (1.6 percent), ICICI Bank (1.5 percent) and Titan Company (3.4 percent) are top five contributors to the Nifty's gains.

Fortis in Focus: Cash-strapped Fortis Healthcare, which is currently in the process to find a new investor, today extended the date for submission of binding bids yet again by fixing July 3 as the new deadline.

Earlier on June 12, the company had extended the deadline for submission of binding bids to June 28 after shortlisting four entities -- the Munjal-Burman combine, Manipal-TPG consortium, Malaysia's IHH Healthcare Berhad and Radiant Life Care -- as possible suitors for the sale of its business.

The date for submission of the binding bids stands revised to Tuesday, July 3, 2018, the company said in a regulatory filing.

The rest of the details with respect to the timings and submission remain the same, it added.

In May, Fortis Healthcare had initiated a fresh time- bound bidding process for its sale after terminating the offer made by the Munjal-Burman combine. It had set June 14 as deadline for submitting fresh binding bids, reports PTI.

ICICI Bank extends gains: The country's largest private sector lender informed exchanges that the board of directors appointed Girish Chandra Chaturvedi as an additional (Independent) director effective July 1, 2018 for a period of 3 years subject to the approval of shareholders as the term of office of M K Sharma expires on June 30, 2018.

The board also approved the appointment of Girish Chandra Chaturvedi as non-executive part-time Chairman effective from July 1, 2018 or the date of receipt of RBI approval for such appointment whichever is later in the vacancy caused by cessation of term of M K Sharma {Independent Director & Chairman), the bank said.

Chaturvedi is not debarred from holding the office of director by virtue of any order of Securities and Exchange Board of India or any other such authority.

Asia Update: Asian stocks rose on the last trading day of the quarter, with regional markets turning higher through the session as China recovered slightly from a recent slump amid worries over trade tensions between Washington and Beijing.

China's Shanghai Composite gained 1.8 percent and Hong Kong's Hang Seng rose 1.4 percent. Japan's Nikkei also recovered to trade higher while South Korea's Kospi went up 0.6 percent.

Market Update: The market held on to early gains, tracking positive global cues on the last day of the quarter. FMCG, oil, infra and metals stocks continue to lead the market higher.

The 30-share BSE Sensex rallied 239.10 points tp 35,276.74 and the 50-share NSE Nifty gained 79.60 points at 10,668.70 while the Nifty Midcap index gained 1 percent.

About three shares advanced for every share falling on the BSE.

Gold Update: Gold rose early Friday after slipping to a more than six-month low in the previous session, as the dollar retreated from recent highs amid a rising euro, but the yellow metal was on track for its worst month since November 2016.

Spot gold was 0.2 percent higher at $1,250.90 an ounce. On Thursday, it touched USD 1,245.32, its lowest since December 13, 2017.

Nomura view on Sun TV: Shares of Sun TV Network gained 2 percent intraday Friday as research house Nomura maintained buy rating with a target of Rs 1105 per share.

According to Nomura, the company is a key beneficiary of digitisation in Tamil Nadu.

The broking house believes that digitization is likely to drive 15-23 percent growth.

The stock is trading at 19x FY20F consolidated EPS and expect 20 percent EPS CAGR FY18-20F, it added

Market Update: The market remained strong in morning with the Nifty holding 10,650 level on the very first day of July series, backed by oil, metals, infra and FMCG stocks.

The 30-share BSE Sensex gained 194.71 points at 35,232.35 and the 50-share NSE Nifty rose 64.00 points to 10,653.10. About three shares advanced for every share falling on the BSE.

Buzzing: Shares of Indo Rama Synthetics rose 10.6 percent on issuance of equity shares on private placement basis.

The company in its board meeting held on June 28 has approved issuance of 90.90 lakh equity shares by way of preferential issue on private placement basis.

The company issued 31,81,818 equity shares to EC Special Situations Fund and 59,09,091 equity shares to Edelweiss India Special Situations Fund- II.

The 32nd annual general meeting (AGM) of the company will be held on July 28, 2018.

Rupee Update: The rupee recovered from its record low by rising 20 paise to 68.58 against the US dollar on fresh selling of the American currency by banks and exporters.

The Indian currency had yesterday breached the 69-mark but covered lost ground to finally close at an all-time low of 68.79 with a fall of 18 paise against the US dollar due to multiple headwinds like weak global cues and concerns related to inflation and fiscal slippage.

Selling of dollars by banks and exporters today made the greenback weak against some currencies overseas, which supported the rupee, forex dealers said.

Higher opening of the domestic equity market also propped up the rupee, they added, reports PTI.

Buzzing: Share price of Newgen Software Technologies rose 5.3 percent intraday as company received work order worth Rs 63.93 crore.

The company has received a work order for document management system (DMS) and digitization project of the records of District and Subordinate courts in the state of Maharashtra on turnkey basis, subject to approval of pilot phase.

This work order pertains to digitisation of Judicial Records for Rs 63,93,24,000.

The work order does not fall within the definition of related party transaction as specified in the companies Act, 2013.

Market Update: The market extended its opening gains with the Nifty trading above 10,650 levels on the first day of July series, backed by metals, oil and banking & financials stocks.

The 30-share BSE Sensex rose 223.45 points to 35,261.09 and the 50-share NSE Nifty gained 71.80 points at 10,660.90. About four shares advanced for every share falling on the BSE.

The Nifty Midcap rose over a percent on short covering.

All sectoral indices are in the green with Metal and PSU Bank leading the charge with over 2 percent gains.

Buzzing: Share price of Bang Overseas touched 52-week high of Rs 50.75, rising 5.5 percent intraday Friday as company entered into an MOU for sale of the land.

The company has entered in to an MOU with the buyer for sale of land situated at EPIP Industrial Estate, Hobli Bangalore, measuring to an extent of 4781 sqm.

The sale / disposal is likely to get completed in 7 months for a consideration of Rs 20 crore.

Crude Update: US. oil prices held around three-and-a-half year highs touched the previous day as a Canadian production outage disrupted the North American market.

International oil markets also remained firm as looming sanctions by Washington against Iran are expected to lead to a sharp drop in supplies from the OPEC-member.

US West Texas Intermediate (WTI) crude futures were at $73.18 a barrel, down 0.37 percent from their last settlement.WTI on Thursday hit its highest since November 2014 at $74.03 per barrel.

Brent crude futures were at $77.74 per barrel, down 0.14 percent, reports Reuters.

Buzzing: Shares of Kalpataru Power Transmission added 4 percent as company secured new orders / notification of award of Rs 1,235 crore.

The said orders include, order for railway infrastructure construction from Bangladesh Railways in a consortium wherein KPTL’s share is Rs 553 crore and orders for transmission line and substation in Tajikistan and India totalling Rs 346 crore.

It also received order from RVNL for design, supply, erection, testing & commissioning for railway electrification, signalling and associated civil works of Rs 185 crore in a consortium.

And order for laying of pipeline & associated works of Rs 151 crore from Andhra Pradesh Gas Distribution Corporation.

Rollover Analysis by ICICI Securities: Nifty rolls were at 64 percent, lower than the 3M average of 66.33 percent

Market wide rollover was at 84.09 percent, in line with the 3M average of 84.98 percent

Sectorally, realty, textile and metal stocks witnessed high rollover of positions while stocks from the oil & gas, FMCG and cement space witnessed relatively low rolls into the July series

Highest rollover was observed in JSW Steel (97 percent), Dabur (95 percent), Britannia (94 percent), M&M Finance (94 percent) and LIC Housing Finance (93 percent) while rollover activity was relatively low in OFSS, Indian Bank, Torrent Power, KPIT and ACC

Among index stocks, Sun Pharma, Tech Mahindra, Bajaj Auto and Tata Motors witnessed high rolls into the July series while Adani Ports, Titan, HCL Tech and Tech Mahindra witnessed relatively low rolls into the next series

Among heavyweights, auto and metal stocks saw fresh short additions while relatively low short positions were seen in cement and oil & gas space

The open interest in Nifty futures at 18.8 million shares is in line with the open interest seen in the last couple of months at inception. The roll spread in the Nifty remained subdued throughout the settlement week and finally declined further to 17 points in the last session. Activity suggests continued short rollover in the Nifty in the July series as well. The Nifty has major support around 10550 while 10600 Put strike has the highest Put option base.

At the same time, Bank Nifty open interest has declined substantially to 1.93 million shares from 2.84 million shares in the last series at inception. The roll spread in the banking index has remained under continued pressure indicating consolidation in coming sessions. Roll spread in the banking index has declined to almost 90 points during the settlement suggesting continued short bias.

Market Opening: Benchmark indices started off the July series on a positive note despite mixed Asian cues, after rattled in previous two consecutive sessions.

The 30-share BSE Sensex rose 115.70 points to 35,153.34 and the 50-share NSE Nifty gained 38.60 points at 10,627.70.

Tech Mahindra, Tata Motors, Tata Steel, Titan Company, HPCL, BPCL, IOC, Infosys, Reliance Industries and Hindalco Industries are early gainers.

Dr Reddy's Labs, NTPC, Asian Paints and Axis Bank are under pressure.

The Nifty Midcap index gained 150 points and Nifty Bank rose 33 points.

Mahindra CIE rallied 5.5 percent post block deal in the morning.

HEG, Graphite India, V-Mart Retail, Kaya, Future Consumer, Delta Corp and InterGlobe Aviation are early gainers.

Market Pre-opening: Benchmark indices are trading flat in pre-opening on last day of the quarter, following mixed trade in Asian stocks.

The Sensex rose 58.92 points to 35,096.56 while the Nifty fell 9.90 points to 10,579.20.