Sensex rises 114 points, Nifty ends tad below 10,700; pharma, auto, IT outshine

03 Jul 2018

Global Update: Asian stocks closed mixed as investors remained cautious ahead of a July 6 deadline when the US is set to impose tariffs on $34 billion worth of goods from China. Beijing is then expected to respond with charges of its own on US goods, reports CNBC.

China's Shanghai Composite gained 0.4 percent while Japan's Nikkei fell 0.12 percent and Hong Kong's Hang Seng fell 1.4 percent.

European markets traded higher after German Chancellor Angela Merkel clinched a last-minute deal on migration, but lingering global trade concerns seem to have capped gains. France's CAC and Germany's DAX were up 1 percent each while Britain's FTSE rose half a percent.

Market Update: Benchmark indices recouped some previous day's losses to close in the green after volatility on Tuesday. Ongoing trade tensions between world's largest economies US and China capped gains.

The 30-share BSE Sensex gained 114.19 points at 35,378.60 and the 50-share NSE Nifty gained 42.60 points at 10,699.90.

The Nifty Midcap index outperformed frontliners, rising 0.92 percent but the market breadth was not very strong. About 1,344 shares advanced against 1,253 declining shares on the BSE.

Reliance Industries, Infosys, TCS, Maruti Suzuki, ITC, Bajaj Finserv, IOC, Kotak Mahindra Bank and Bajaj Finance, which gained 1-2 percent, were top contributors to the Nifty's gains.

JPMorgan overweight on Maruti Suzuki: Maruti Suzuki share price rallied 1.9 percent after global brokerage house JPMorgan has maintained overweight call on the stock with a target price at Rs 10,200 per share.

This implies 15.5 percent potential upside from Monday's closing levels.

The research house feels its compact segment has been driving the growth and the company will be able to hold onto its market share.

"Maruti's revenue growth will remain exciting over FY19 as EBIT margin could sustain at current high levels," JPMorgan said, adding growth will sustain for the industry in FY19.

At 15:05 hours IST, the stock price Maruti Suzuki India was quoting at Rs 8,965.00, up Rs 137.40, or 1.56 percent.

Tata Group Stocks in Focus: Tata Group stocks - TCS (up 1.25 percent), Tata Motors (up 1.11 percent), Tata Steel (0.79 percent), Tata Chemicals (1.88 percent), Tata Metaliks (3.37 percent), Tata Sponge Iron (3.13 percent) and Tata Global (6.66 percent) continued to see buying interest.

L&T in focus: JPMorgan has maintained Overweight call on Larsen & Toubro with a target price of Rs 1,600 per share, implying a 27.4 percent potential upside from Monday's closing levels.

The stock's underperformance in June is a tad disappointing after Q4 earnings beat analyst expectations.

The research house said FY19 appears to be another 'no-show' year for the defence space and achieving topline growth guidance is company's main focus in FY19.

Management is hopeful that it would contain net loss from Hyderabad Metro project in FY19.

Aban Offshore bags order from ONGC : The company informed exchanges that its step-down subsidiary Aban Singapore Pte Ltd has received a letter of award from Oil and Natural Gas Corporation.

The order is for deployment of jack-up rig deep driller 8 for a firm period of 2 years.

The deployment is likely to commence during the fourth quarter of calendar year 2018.

Market Update: The market continued to trade higher amid consolidation in the afternoon, backed by index heavyweights Reliance Industries, Infosys and TCS. But selling pressure in ICICI Bank and HDFC twins cap gains.

The rangebound trade indicated that investors await June quarter earnings season that will be kicked off by TCS next week.

The 30-share BSE Sensex rose 134.74 points to 35,399.15 and the 50-share NSE Nifty gained 49.10 points at 10,706.40 while the Nifty Midcap index extends gains, rising nearly a percent.

Sales Data: Steel Strips Wheels achieved total wheel rim sales of 12.66 lakh in June 2018 against 10.29 lakh in June 2017 representing a growth of 23 percent YoY.

"The growth in June was all around segments and we expect this to continue going ahead with firm schedule indication 15% plus volume growth," the company said in its filing.

In terms of value, the company has achieved gross turnover of Rs 197.60 crore in June 2018 against Rs 112.45 crore in June 2017, there by recording a growth of 76 percent and achieved net turnover growth of 55 percent at Rs 155.96 crore.

Nihar Info Global in focus: The company informed exchanges that it has registered with www.Amazon.com to sell various products related to home & kitchen, small appliances, electronics and handicrafts in USA.

"The company has sent its first shipment to Amazon warehouse in USA and also the company has started receiving the orders. The company plans to increase the product portfolio and sales volume in the upcoming months to strengthen its export division," it said.

Adani Ports in Focus: JPMorgan has maintained its Overweight call on Adani Ports and Special Economic Zone with a target price at Rs 440 per share after promoter offloaded its 4 percent stake in the company over past few days.

Temasek Holdings were among large institutional buyers in the recent promoter stake sale.

"Entry of well regarded & large institutional funds is a positive sign for investor confidence," the research house said, adding the stake sale has yielded proceeds of Rs 3,000 crore for promoters.

Buzzing: Shares of Ashoka Buildcon gained as much as 2.6 percent in the afternoon trade on Tuesday after receiving arbitration award related to Rajasthan project.

The road developer informed exchanges that it, along with one of its subsidiary has received amount of Rs 22,44,90,005 vide settlement agreement executed with NHAI.

The amount received by the company was an outcome of conciliation process for the resolution of disputes under the arbitration, for the Project viz. construction of 4/6 lane access controlled Chittorgarh Bypass - NH-79, in Rajasthan.

Market Update: The market is off its day's high in afternoon as investors closely monitor trade developments between the US and China, and also await June quarter earnings season that will be kicked off next week.

The 30-share BSE Sensex gained 82.58 points at 35,346.99 and the 50-share NSE Nifty rose 29 points to 10,686.30.

The sectoral trend was mixed with the Nifty Pharma index rising 1.5 percent and Auto a percent.

Reliance Industries, Infosys and TCS are supporting the market whereas the selling pressure in ICICI Bank and HDFC twins cap market gains.

Europe Update: European stocks were slightly higher, though lingering concerns over global trade appeared to cap gains. France's CAC gained 0.4 percent, Germany's DAX rose 0.6 percent and Britain's FTSE went up 0.12 percent.

Flemingo Travel Retail gets Sebi's go ahead for IPO: Flemingo Travel Retail, a leading duty-free and travel retail operator, has received capital markets regulator Sebi's go ahead to garner Rs 2,600 crore through an initial share-sale.

With this, the total number of companies getting clearance from the Sebi to float initial public offer (IPO) this year has reached 29 so far.

The company had filed its draft papers with the Securities and Exchange Board of India (Sebi) in February and received its "observations" on June 22, which are necessary for every firm to launch public issue, latest update with the markets watchdog showed.

Going by the draft prospectus, Flemingo will issue fresh shares worth Rs 2,423 crore besides an offer for sale of 11,29,500 scrips by one of its subsidiary Flemingo Duty Free Shop Mumbai Pvt Ltd, reports PTI.

BSE to delist 222 companies from tomorrow: Leading stock exchange BSE will delist as many as 222 companies from tomorrow as trading in their shares has remained suspended for over six months.

The move comes at a time when authorities are clamping down on shell companies -- listed as well as unlisted -- for being allegedly used as conduits for illicit fund flows.

In August last year, Sebi had directed exchanges to act against 331 suspected shell companies, while the government has already deregistered more than 2 lakh firms that have not been carrying out business activities for long.

Market Update: The market extended gains following further recovery in China's Shanghai Composite which was trading mildly higher and positive opening in European stocks.

The 30-share BSE Sensex gained 170.93 points at 35,435.34 and the 50-share NSE Nifty rose 54.20 points to 10,711.50 while the Midcap index also gained strength, rising over half a percent.

Infosys, TCS, Reliance Industries, Maruti Suzuki, Axis Bank, ONGC, Bajaj Finserv and Tata Motors are top contributors to the Nifty's gains.

Singapore Court ruling in favour of Kiri Industries: Kiri Industries share price was locked at 20 percent upper circuit at Rs 576.15 on Tuesday after the Singapore court dismissed all the claims and counterclaims against promoters Pravin Kiri, Manish Kiri, Amitava Mukherjee (KIL's nominated director on DyStar board) and Kiri International Mauritius Pvt Ltd (KIPL).

There were pending buy orders of 22,191 shares, with no sellers available.

Kiri Industries (KIL), which manufactures dyes, dyes intermediates and chemicals, had filed a case against DyStar Global Holdings (Singapore) Pte Ltd (DyStar) and Senda International Capital Limited (Senda) for minority oppression in relation to KIL's investment in DyStar.

The court has found that Senda committed numerous acts of minority oppression against KIL. "The court was pleased to direct Senda to purchase KIL's 37.57 percent shareholding in DyStar, based on a valuation to be assessed," the company said in its filing.

USFDA Approval: Cadila Healthcare said Zydus has received approval from the US Food and Drug Administration for Nifedipine & Cholestyramine.

Nifedipine is used to manage angina & high blood pressure.

Market Expert: Dhananjay Sinha, Head of Research, Economist and Strategist, Emkay Global Financial Services told CNBC-TV18 that the announcement of minimum support price (MSP) is critical even if it’s coming with a delay.

There's a rumour of 13-14 percent increase in MSP prices by the government. "Consumption theme will see some traction if higher MSP is approved," Sinha said.

HDFC Bank & ICICI Bank are top picks amongst financials. "We are looking for a modest upcycle in lending growth while we are circumspect on NBFCs on rising rate scenario," he said.

He is underweight on PSU Banks on rising yield scenario.

Crude Steel Production: Private steel maker JSPL reported a 36 percent rise in the domestic crude steel production to 1.23 million tonnes (MT) for the quarter ended June 30.

The company had clocked production of 0.90 million tonnes in the year-ago period.

"JSPL also recorded a 46 per cent growth in domestic sales during first quarter of 2018-19 to 1.18 million tonnes, up from 0.81 million tonne in the first quarter of the previous fiscal," Jindal Steel and Power (JSPL) said in a statement.

In India, the company has two integrated steel plants in Raigarh and Angul.

JSPL had posted quarterly crude steel production at 1.26 million tonnes as of March 31, 2018, reports PTI.

Coal Shortage: Power Minister Piyush Goyal said he is agreed that there is shortage of coal for power plants in India. So states can import coal for power if required, to meet the demand, he added.

"Coal supply will continue to be a problem for next 2-3 years due to mining operations & environment clearances," he said.

Market Update: The market gained strength with the Sensex rising around 150 points and the Nifty reclaiming 10,700 levels, backed by Reliance Industries, Infosys, TCS and HDFC Bank.

China's Shanghai Composite and Japan's Nikkei recovered from day's low to trade flat. Investors closely monitor trade tensions between world's largest economies US and Beijing.

The 30-share BSE Sensex rose 152.18 points to 35,416.59 and the 50-share NSE Nifty gained 44.80 points at 10,702.10.

Shree Renuka Sugars' director resigns: Sanjay Asher, non-executive independent director has resigned from the directorship of company with effect from end of day on July 2, 2018.

Accordingly, Sanjay Asher has ceased to be director of the company with effect from end of day on July 2, 2018.

At 11:20 hrs Shree Renuka Sugars was quoting at Rs 12.75, down Rs 0.16, or 1.24 percent on the BSE.

Emkay upgrades United Breweries to buy: Shares of United Breweries advanced 3 percent as research house Emkay Global has upgraded the stock to buy from accumulate. It has also raised price target to Rs 1,400 from Rs 1,350 per share.

The company is extending market leadership in premium segment. The channel checks indicate strong volume trends for previous quarter, said Emkay.

The benign competitive intensity, cost savings, higher realisations is likely to drive margin expansion.

This is top pick in consumption space and recent correction provides an attractive entry opportunity, it added.

Govt wants to close IDBI-LIC deal in next three months: Finance Ministry official said insurance major LIC would independently value IDBI Bank, reports CNBC-TV18 quoting NewsRise.

The official further said the government is asking LIC to price IDBI Bank's future worth while valuing lender while IDBI Bank is also in process of determining fair value of its own shares.

The government has sought premium from LIC for selling majority stake in the lender and wants to close the stake sale deal in next three months.

Order Win: Shares of NCC rose nearly 5 percent intraday as company received new orders worth Rs 2,060.96 crore in the month of June 2018.

The company has received four new orders totalling to Rs 2060.96 crore (exclusive of GST) in the month of June 2018. Out of this, three orders totalling to Rs 1997.51 crore pertain to buildings division and one order of Rs 63.45 crore pertain to water & environment division.

All these orders are received from various central and state government agencies and do not include any internal orders.

Market Update: The market remained rangebound in morning despite correction in the Asian peers. Shanghai fell over a percent as investors worried over Beijing's trade relations with the US soured sentiment in the region.

The broader markets continued to underperform frontliners whlie the sectoral trend is mixed with Nifty Metal and PSU Bank falling a percent each.

Vedanta and Bharti Infratel declined more than 3 percent while ONGC rallied 3.5 percent. Reliance Industries, TCS, HDFC Bank and Infosys shares are supporting the market.

The 30-share BSE Sensex rose 12.17 points to 35,276.58 while the 50-share NSE Nifty fell 0.90 points to 10,656.40.

Acquisition of Product patent: Shares of Parag Milk Foods rose 2.3 percent as company board approved the acquiring of patented product rights from the Sweden-based organization.

The board has authorised Devendra Shah- chairman of the company, to finalise the key aspects to the deal.

Crude Outlook: While raising Brent crude forecast to $85 per barrel for second half of CY18, Morgan Stanley said it sees lower output from Iran, Libya & Angola going ahead.

The research house has increased its output forecasts for Saudi Arabia

Crude Update: Oil prices climbed after Libya declared force majeure on significant amounts of its supply, but rising overall output from OPEC as well as in the United States was dragging on markets.

Brent crude oil futures were at $77.85 per barrel, up 0.71 percent, from their last close.

US West Texas Intermediate (WTI) crude futures were up 0.88 percent, at $74.58, reports Reuters.

Greenply in Focus: Shares of Greenply Industries added 5.6 percent in morning after company commenced commercial production at Andhra unit.

The company has commenced commercial production of medium density fibreboard (MDF) on July 1, at its manufacturing unit situated at Routhu Suramala, Thottambedu, Chittoor, Andhra Pradesh.

Buzzing: Strides Shasun share price gained as much as 2.2 percent after its subsidiary received approval from the US health regulator for the painkiller drug.

"The wholly owned subsidiary Strides Pharma Global Pte Ltd has received final approval for Ibuprofen tablets USP, 200 mg (OTC) from the United States Food & Drug Administration (USFDA)," the company said in its filing.

Ibuprofen is a generic version of Motrin IB tablets, 200 mg, of Johnson & Johnson Consumer, Inc.

"The approval further strengthens Strides Ibuprofen franchise for the US markets that now comprises of 7 approved products addressing a combined Rx and OTC opportunity of $900 million as per IMS and IRi data," the company said.

Ibuprofen is used to relieve pain from various conditions such as headache, dental pain, muscle aches, or arthritis. It is also used to reduce fever and to relieve minor aches and pain due to the common cold or flu. Ibuprofen is a non-steroidal anti-inflammatory drug (NSAID).

Market Update: Benchmark indices consolidated after yesterday's sell-off, but the broader markets reeled under selling pressure with the Nifty Midcap falling nearly half a percent.

Asian markets are under pressure with the China's Shanghai Composite falling over a percent as investors worried over trade relations between Beijing and the US.

The 30-share BSE Sensex rose 18.37 points to 35,282.78 and the 50-share NSE Nifty gained 3.70 points at 10,661.

Top buy & sell ideas by Ashwani Gujral, Sudarshan Sukhani, Mitessh Thakkar for short term

Mitessh Thakkar of mitesshthakkar.com is of the view that one can buy Asian Paints with a stop loss of Rs 1273 and target of Rs 1330, Wipro with a stop loss of Rs 255 and target of Rs 270 and sell Grasim Industries with a stop loss of Rs 1001.50 and target of Rs 960.

Rupee Trade: The Indian rupee traded lower by 12 paise at 68.91 per dollar on fresh demand for the American currency.

Yesterday rupee closed near five-year low at 68.80 per dollar. It ended lower by 33 paise against Friday's close 68.47 .

Yesterday rupee gained in the first half of the session but came under pressure in the latter half of the session following strength in the dollar against its major crosses and higher global crude oil prices. Yesterday, crude rallied after Libya declared force majeure on some of its supplies, although an overall rise in OPEC output and an emerging slowdown in demand held back markets, said Motilal Oswal.

Libya’s National Oil Corporation declared force majeure on loadings from Zueitina and Hariga ports, resulting in total production losses of 850,000 bpd due to the closure of eastern fields and ports. Today, USD-INR pair is expected to quote in the range of 68.80 and 69.30, it added.

Market Opening: Benchmark indices started off trade on a flat note depsite weakness in the Asian peers due to ongoing trade tensions between US and China.

The Sensex fell 33.24 points to 35,231.17 and the Nifty slipped 11.40 points to 10,645.90.

Hero MotoCorp, TCS, Dr Reddy's Labs, Bajaj Auto and Coal India are early gainers.

Vedanta, Grasim, Bharti Infratel, ICICI Bank, HDFC, Titan Company, Maruti Suzuki, Cipla, Yes Bank, PNB and Bank of Baroda are under pressure.

The Nifty Midcap index fell 54 points.

8K Miles Software, AU Small Finance, Vakrangee, SREI Infra, ICICI Prudential, IDBI Bank, Nalco and Ashok Leyland lost ground. while Strides Shasun, NCC, Tata Power and Jyothy Labs are gainers.

Stocks in the news: Hero MotoCorp, Dr Reddy's Labs, Nestle, Tata Power, NCC

Here are stocks that are in news today: Dr Reddy's Labs: Company announces launch of Repatha in India Aurobindo Pharma: The firm has received USFDA approval for Ibuprofen OTC capsules.

Market Pre-Opening: Benchmark indices traded mildly higher in the pre-opening despite weakness in Asian stocks.

The 30-share BSE Sensex rose 30.02 points to 35,294.43 and the 50-share NSE Nifty gained 47.30 points at 10,704.60.

Pre-Market: The Nifty50 is likely to open flat on Tuesday but with a positive bias tracking muted trend seen in other Asian markets. The index closed 57 points lower at 10,657 on Monday.

Trends on SGX Nifty indicate a flat opening for the broader index in India, a rise of 5 points or 0.05 percent. Nifty futures were trading around 10,655-level on the Singaporean Exchange.

Wall Street ended higher on Monday after a choppy session, with gains in Apple and other technology stocks offsetting worries about an escalating trade war between Washington and its trading partners, said a Reuters report.

Asian markets edged cautiously higher on Tuesday, retracing some of the sharp declines seen in the overnight session as stocks tracked gains seen on Wall Street although worries over US trade policy lingered in the background, it said.

Oil prices climbed on Tuesday after Libya declared force majeure on significant amounts of its supply, but rising overall output from OPEC as well as in the United States was dragging on markets.