Nifty ends below 10,750; RIL, Infosys negative contributors

05 Jul 2018

Market Closing: The market remain choppy during the day but ended marginally lower with Sensex falling 70 points, while Nifty ended below 10,750 mark.

The 30-share BSE Sensex was down 70.85 points at 35,574.55 and the 50-share NSE Nifty fell 20.10 points to 10,749.80.

The market breadth was weak, about 1052 shares have advanced, 1541 shares declined, and 165 shares are unchanged on the BSE.

Midcap and smallcap underperform the major indices with 0.5 percent cut.

Dalmia Bharat, Shree Cement, India Cements and Ultratech Cement gained 3-4 percent.

Saregama, Gati, Force Motors, Firstsource Solutions, CESC, Muthoot Finance, Max Financial, LIC Housing Finance, 8K Miles Software gained up to 10 percent.

KPIT Technologies, Equitas Holdings, Hathway Cable, Den Networks, IDBI Bank, United Spirits, United Breweries, Radico Khaitan, IDFC Bank, IDFC and Nalco fell up to 16 percent.

Rupee Update: The Indian rupee slipped 23 paise at 68.97 per dollar. It has opened 6 paise lower at 68.80 per dollar against previous close 68.74.

Buzzing: Shares of Som Distilleries and Breweries gained 3.7 percent after acquisition of a brewery in the state of Odisha.

The said facility is expected to be operational in the coming 3-4 months.

The acquisition valued at Rs 42 crores has a capacity of 42 lakh cases per annum.

Infosys partners with Siemens: Infosys unveiled a new partnership with Siemens PLM Software to develop applications and services for MindSphere, the open cloud-based IoT operating system from Siemens.

This partnership between Infosys and Siemens will enable customers to improve competitiveness by leveraging the power of data generated by their devices.

MindSphere connects real things to the digital world and provides powerful industry applications and digital services to help drive business success.

Infosys was quoting at Rs 1,278.25, down 4.93 percent and Siemens was quoting at Rs 968.10, down 0.39 percent on the BSE.

Raises lending rates: The Bank of Baroda has raised lending rate by 5 bps applicable from July 7, 2018

At 14:50 hrs Bank Of Baroda was quoting at Rs 113.90, up Rs 0.35, or 0.31 percent.

Results season to begin next week: June quarter earnings season will begin next week with Dish TV announcing numbers on Monday; TCS, IndusInd Bank and Prakash Industries on Tuesday; Karnataka Bank on Thursday; and Infosys on Friday.

Liquor companies in focus: Share prices of all listed liquor companies fell up to 6 percent on Thursday after the Karnataka government increased additional excise duty on liquor.

United Spirits share price lost 5.6 percent intraday, GM Breweriesdropped 5 percent, United Breweries 3.2 percent and Globus Spirits 1.1 percent while Pincon Spirit was locked at 5 percent upper circuit after the news.

While announcing Karnataka government Budget, the state Chief Minister H D Kumaraswamy proposed a hike in the additional excise duty on Indian-made liquor by 4 percent across the board on all 18 slabs.

Gold Update: Gold prices traded in a narrow range on Thursday, after hitting a one-week high in the previous session, amid an easing dollar and as the markets awaited minutes from the US Federal Reserve's June policy meeting later in the day.

Spot gold held steady at $1,255.59 an ounce as of 0435 GMT. The metal touched a one-week high at $1,261.10 in the prior session and gained over $20 from Tuesday's low of $1,237.32 an ounce, its weakest since Dec. 12.

US gold futures were up 0.3 percent at $1,256.70 an ounce.

Buzzing: ICICI Securities share price corrected for fourth consecutive session, falling 4 percent to hit fresh low of Rs 292.65 intraday on Thursday after SEBI found ICICI Prudential Asset Management Company guilty of helping I-Sec's IPO get subscribed.

The stock price lost more than 11 percent in four consecutive sessions. Not only ICICI Securities but also other ICICI Group companies like ICICI Bank (down 0.4 percent intraday), ICICI Prudential Life Insurance (1.2 percent) and ICICI Lombard General Insurance company (2.7 percent) corrected due to corporate governance issue.

Capital and commodities markets regulator, SEBI, has found ICICI Prudential Asset Management Company (ICICI Pru AMC) guilty of violating rules while bidding for the shares of firm ICICI Securities (I-Sec) on the last day of initial public offer.

Buzzing: Shares of Subex rose more than 9 percent as company bagged multi-million dollar contract from Optus.

Optus is one of the largest telecom operators in Australia and a fully owned subsidiary of Singtel.

The company's ROC Network Asset Management will enable Optus to control all of its existing and new network investments through a well-defined network efficiency framework.

Karnataka Farm Loan Waiver Scheme: In a big relief to the farm sector, Karnataka Chief Minister H D Kumaraswamy today announced a mega Rs 34,000 crore farm loan waiver scheme in the maiden budget of the Congress-JDS coalition government.

Unveiling the budget proposals in the Assembly, Kumaraswamy, who also holds the finance portfolio, said he has limited the loan amount to Rs 2 lakh, as it was "not right" to waiver higher value crop loan.

"Due to this crop loan waiver scheme, farmers will get the benefit of Rs 34,000 crore," Kumaraswamy said, seeking to fulfil a major electoral promise made by the JDS in its manifesto for the recently held assembly polls in the state.

With the waiver scheme imposing a huge burden on the exchequer, he also announced proposals to mop up additional resources, including increase in the rate of tax on petrol by Rs 1.14 per litre and diesel by Rs 1.12 per litre.

He also proposed a hike in the additional excise duty on Indian-made liquor by 4 per cent across the board on all 18 slabs. PTI reported.

Fund Raising: Zuari Agro Chemicals has sought shareholders' nod to raise up to Rs 755 crore through various modes to mainly fund revamp of its ammonia-urea plants.

It proposes to raise 32 million Euro (approx Rs 255 crore) by Foreign Currency Convertible Bonds (FCCBs) to support the revamp project.

The company said it plans to raise up to Rs 500 crore by issuing Compulsory Convertible Debentures (CCDs) via rights issue to existing investors for the revamp and general corporate purposes.

"The company is in process of implementing the integrated revamp of ammonia-urea-steam, power generation facilities...at an investment of Rs 1,387 crore," Zuari Agro said in a postal ballot notice to shareholders. PTI reported.

Petrol and Diesel Price Hike: Petrol and diesel prices were today hiked for the first time in more than a month on the back of rising international rates and weakening rupee. The increase of 16 paisa a litre in petrol and 12 paisa per litre in diesel came after an 8-day self-imposed hiatus in rate revisions by state-oil firms in anticipation of softening international rates due to OPEC decision to raise output by 1 million barrels per day.

The price of petrol in Delhi climbed to Rs 75.71 per litre from Rs 75.55 and diesel to Rs 67.50 a litre from Rs 67.38, according to price notification of Indian Oil Corp (IOC).

The three state-owned fuel retailers, IOC, Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) had not revised petrol and diesel prices since June 26, reports PTI.

Market Update: Benchmark indices continued to trade lower with the Sensex falling 87.55 points to 35,557.85 and the Nifty down 25.50 points to 10,744.40.

Infosys is the biggest loser among Nifty50 stocks, falling 5 percent followed by Titan Company (down 4.75 percent), Reliance Industries (0.65 percent), Vedanta (2.59 percent), Tata Motors (2.79 pecent) and Tata Steel (2.79 percent).

But the buying in ITC (up 1.29 percent), HDFC Bank (0.63 percent), Yes Bank (2.85 percent), HDFC (0.36 percent) and TCS (0.32 percent) managed to cap losses.

Buzzing: Hathway Cable shares fell 15 percent and Den Networks lost 8 percent after the Mukesh Ambani launched fiber broadband service which will be called JioGigaFiber.

Karnataka Budget: Karnataka Government launched its Budget today, saying the tax on liquor increased by 4 percent.

PNB in focus: PNB sources said the bank recovered Rs 8,000 crore from stressed assets during Q1 and plans to recover Rs 12,000 crore worth stressed assets in Q2, reports CNBC-TV18 quoting Cogencis.

The bank expects it to turn profitable again Q3 onwards.

Buzzing: Idea Cellular share fell nearly a percent and Bharti Airtel declined 1.5 percent after the plans of Reliance Jio launched by Mukesh Ambani at the company's 41st AGM.

At company's AGM, Mukesh Ambani said that Reliance has doubled its customer base for Jio to 215 million within 22 months of the beginning.

He said data usage increased to 125 crore GB to 240 crore GB and voice usage increased from 250 crore minutes per day to 530 crore minutes per day.

"The video consumption increased from 165 crore hours per month to 340 crore hours per month," he added.

Jio will be present in every district, taluka & gram panchayat of India. Capacity utilisation of Jio network less than 20 percent currently. Jio can multiply capacity utilisation without additional investments.

"We are on track for 99 percent population coverage with 4G LTE," Ambani said.

"We will now extend fiber connectivity to homes, merchants, small and medium enterprises and large enterprises simultaneously across 1,100 cities to offer the most advanced fiber-based broadband connectivity solutions," he said further.

RIL AGM: Reliance is proposing a cross-border merger of RHUSA with the company.

RIL AGM: Refining Business - RIL commissioned world's largest petcoke gasification project in a record time this year.

"Gassification project will eliminate dependence on our refinery," Ambani said.

Hydrocarbon business: Ambani said Jamnagar refinery completed 20 years of operation.

Jamnagar refinery has expanded in scalecomplexity & size, and has expanded in scale complexity & size.

Today RIL is the second largest producer of paraxylene in the world.

RIL AGM: Reliance Industries is providing broadband connectivity to villages, schools across India via Jio under Education Platform.

Market Update: Benchmark indices continued to consolidate with a negative bias. The Sensex fell 62.25 points to 35,583.15 and the Nifty declined 18.70 points to 10,751.20.

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

RIL AGM: "We want to more than double income of our farmers," Ambani said. Jio can usher a smart green revolution in India through Agriculture Platform.

RIL AGM: Ambani said regional content & digital delivery continue be the focus of Network18.

Viewership of Network18 is in excess of 700 million.

RIL AGM: Reliance Industries has India's largest entertainment platform with one in ervery 2 Indians consuming Network18's content.

RIL AGM: Ambani said new commerce platform will re-define retail business in India and digital tools will predict & anticipate customer needs.

RIL AGM: "We see our biggest growth opportunity in creating hybrid online-offline market. We will integrate physical & digital marketplaces. We expect merchant & small shop owners as critical customers," Ambani said.

RIL AGM: Reliance Retail market has been creating value for small merchants and sold 5 lakh tonne of groceries.

RIL AGM: Ambani is confident that Reliance Retail will become bigger and more profitable.

RIL AGM: Reliance Retail is the largest and fastest growing company, having 7,500 stores with 350 million footfalls this year.

RIL AGM: Reliance Jio would be first company worldwide to launch JioGigaFiber accross 1,100 cities of India simultaneously.

RIL AGM: Users can start registering for 'JioGigaFiber' from August 15, via MyJio or Jio.com.

RIL AGM: JioPhone 2 will be available at an introductory price of Rs 2,999 from August 15, 2018.

RIL AGM: Mukesh Ambani launched Jio Phone Monsoon Hungama Offer.

Jio users can exchange existing Jio Phone for a brand new feature phone for Rs 501.

RIL AGM: Jio users will get WhatsApp, Facebook & YouTube to their Jio Phone from 15th of August this year.

RIL AGM: Isha Ambani said Jio GigaTV Calling' will enable video calling to TV and 'Jio Virtual Reality' headset will enable virtual reality experience. "Every switch in a house can be smartvia Jio Smart Home Solutions."

RIL AGM: Reliance launched 'Jio Giga' Router & 'Jio Giga TV' set top box, which enabled the voice command feature on the TV as well. "TV calling is revolutionary, it changes the way India watches TV," Isha Ambani said.

RIL AGM: Reliance is launching 'JioPhone 2', and existing & the new model to be available side by side.

Reliance Industries Stock Price Update: The stock was quoting at Rs 996.30, up Rs 6.25, or 0.63 percent on the BSE.

It has touched an intraday high of Rs 1,008.50 and an intraday low of Rs 984.75.

It was trading with volumes of 505,490 shares, compared to its five day average of 276,073 shares, an increase of 83.10 percent.

In the previous trading session, the share closed up 1.90 percent or Rs 18.45 at Rs 990.05.

The share touched its 52-week high Rs 1,035.80 and 52-week low Rs 713.50 on 21 June, 2018 and 05 July, 2017, respectively.

Currently, it is trading 3.81 percent below its 52-week high and 39.64 percent above its 52-week low.

Market capitalisation stands at Rs 631,295.43 crore.

RIL AGM: Isha Ambani said Reliance is bringing WhatsApp, Facebook & YouTube to the Jio Phone.

RIL AGM: Ambani said RIL has more than 25 million JioPhone users in India. "We are now taking the JioPhone to the next level, with added capabilities and functionalities"

RIL AGM: Ambani said Reliance has reached an inflection point and its earnings profile underwent a major change this year.

Net profit grew by 20.6 percent to Rs 36,076 crore in FY18. Reliance's consumer business represented 13 percent of consolidated EBITDA.

RIL AGM: Mukesh Ambani son Akash and daughter Isha will launch JioGigaFiber.

RIL AGM: Ambani says Reliance Industries has invested Rs 2.5 lakh crore in fibre connectivity.

Jio will offer the most competitive broadband connection. Fibre will redefine 24/7 emergency help for all homes accross India.

Fixed band broadband: India is still lagging in the fixed band broadband penetration. "We are determined to make India one of top 5 globally in fixed line broadband," Ambani said.

Reliance has over 25 million Jio phone users in India.

Ambani says: Jio will be present in every district, taluka & gram panchayat of India.

Capacity utilisation of Jio network less than 20 percent currently. Jio can multiply capacity utilisation without additional investments.

"We are on track for 99 percent population coverage with 4G LTE," Ambani said.

RIL AGM: Mukesh Ambani says data usage increased to 125 crore GB to 240 crore GB and voice usage increased from 250 crore minutes per day to 530 crore minutes per day.

The video consumption iincreased from 165 crore hours per month to 340 crore hours per month.

RIL 41st AGM: Reliance doubles its customer base for Jio to 215 million within 22 months of the beginning.

Market Check: The market is trading with marginal loss with Sensex down 70 points at 35576.87, while Nifty trading below 10,750.

About 943 shares have advanced, 1062 shares declined, and 113 shares are unchanged.

Infosys, Titan Company, Tata Motors, Vedanta and Tata Steel are the negative contributors to the Nifty.

Among the sector, pharma, banks, FMCG are holding the gains, while auto, metal, IT, infra are trading lower.

RIL subsidiary Acquisition: Reliance Brands, a subsidiary of Reliance Industries, has purchased 12.5 percent equity stake in Future101 Design Private Limited (Future101) for Rs 9.5 crore, the company said in its filing.

The acquisition of minority stake is in the nature of strategic investment, it added.

Future101, incorporated in July, 2013 is engaged in manufacturing, distribution and sale of luxury apparels, etc. in India. Future101 belongs to a similar industry as Reliance Brands Limited. We expect growth in this sector and value creation from this investment.

Future101 reported annual turnover of Rs 22.18 crore, Rs 20.85 crore and Rs.17.11 crore in FY 2017-18, FY 2016-17 and FY 2015-16, respectively.

"No regulatory approvals were required for the said acquisition of shares. The investment does not fall within related party transaction and none of RIL's promoter / promoter group / group companies have interest in Future101," RIL said.

Tweet on oil price by Donald Trump: Tweets Trump late on Wednesday said the Organization of Petroleum Exporting Countries (OPEC) producer cartel was driving up fuel prices.

"The OPEC Monopoly must remember that gas prices are up & they are doing little to help. If anything, they are driving prices higher as the United States defends many of their members for very little $'s. This must be a two way street. REDUCE PRICING NOW!" Trump wrote on Twitter. Reuters reported.

Crude Update: Oil prices eased after US President Donald Trump sent a tweet urging OPEC to reduce prices for crude.

Brent crude futures were at $77.68 per barrel, down 0.72 percent, from their last close.

US West Texas Intermediate (WTI) crude futures were down 0.38 percent, at $73.86 per barrel.

Trump late on Wednesday said the Organization of Petroleum Exporting Countries (OPEC) producer cartel was driving up fuel prices.

Rupee Update: The rupee declined 9 paise to 68.83 against the US dollar, pressured by a lower opening in the domestic stock market.

Increased demand for the American currency from importers and banks amid persistent foreign fund outflows also weighed on the rupee.

Foreign portfolio investors (FPIs) sold shares worth Rs 284.58 crore yesterday, as per provisional data.

Forex dealers said the rise of euro and yen against the greenback capped the rupee's fall.

Yesterday, the rupee had lost 17 paise at 68.74 against the dollar amid rising crude oil prices and inflationary concerns after MSP hike for kharif crops by the government, reports PTI.

Buzzing: Shares of Va Tech Wabag gained more 3 percent in the opening trade on Thursday as company to consider fund raising on July 9.

A meeting of the board of directors of the company is scheduled to be held on July 9, 2018, to consider and approve the fund raising proposal.

The trading window for dealing in the company's equity shares will remain closed from July 5 to July 11, 2018 (both days inclusive) for prevention of insider trading.

Tata Motors under pressure: Britain's biggest carmaker Jaguar Land Rover said a so-called "hard Brexit" would cost it 1.2 billion pounds ($1.59 billion) a year, curtailing its future operations in the United Kingdom.

"We urgently need greater certainty to continue to invest heavily in the UK and safeguard our suppliers, customers and 40,000 British-based employees," JLR's Chief Executive Ralf Speth said in a statement.

Speth's comments come ahead of a meeting this Friday between Prime Minister Theresa May and her cabinet ministers to decide on strategy for Britain to negotiate its way out of the European Union, ending a 40-year trading relationship.

Because of uncertainty about what Britain actually wants from the EU after it leaves, the outcome of the cabinet meeting is seen as critical to progress in talks with the EU on the issue, reports Reuters.

Shriram Transport Finance Corporation gains 9%: The share price rebounded 9 percent after the company's clarification note on SVL loan soothed investors' sentiment. The stock had fallen 12 percent in previous session as investors had turned cautious of a guarantee of Rs 870 crore provided by the firm for its unlisted subsidiary.

Shriram Transport Finance Corporation issued clarification note yesterday, saying SVL Limited, its promoters / promoter group, and its associates, have enough resources to honour the payment of this loan whenever due and payable has reassured the same.

Market Opening: Benchmark indices are trading flat in opening trade amid weak Asian markets.

The Sensex down 4.94 points at 35640.46, and the Nifty down 1.10 points at 10768.80.

Bajaj Finserv, M&M, Yes Bank, BPCL, Hero Motocorp, UltraTech Cement, HPCL, Dr Reddy's Labs, Tech Mahindra and Lupin are early gainers.

Tata Steel, Titan Company, Idea Cellular, Bharti Airtel, Tata Motors and Bajaj Auto are under pressure.

The Nifty Midcap index fell 17 points while Nifty Bank index gained 20 points.

Bharat Forge, Force Motors, Future Lifestyle, Shriram Transport and Biocon gained up to 3 percent while Tata Coffee is under pressure.

Reliance Industries gained more than 1 percent ahead of 41 AGM scheduled to be held today.

Varroc Engineering to make market debut on July 06: After receiving good response to the issue, auto component maker Varroc Engineering will list its equity shares on July 06, 2018. The final issue price is fixed at higher end of price band.

The Rs 1,955-crore initial public offering was oversubscribed 3.59 times during June 26-28, driven by strong interest from institutional investors.

The public issue has received bids for 5.09 crore equity shares against offer size of 1.4 crore shares (excluding anchor investors' portion).

Market Pre-Opening: Benchmark indices are trading higher in pre-opening trade despite weakness in Asian peers.

The Sensex up 34.59 points at 35679.99, and the Nifty up 34 points at 10803.90.

Rupee Update: The Indian rupee opened lower by 6 paise at 68.80 per dollar on Thursday against previous close 68.74.

Yesterday rupee fell against the US dollar in the latter half of the session primarily on back of rise in global crude oil prices. Volatility for major currencies including the rupee was low in yesterday’s session as US markets were shut on account of Independence Day holiday, said Motilal Oswal.

On the other hand, global crude oil prices could to trade in a wide range keeping most market participants on the edge. Crude has been one of the major factors that led to volatility in most asset classes. Iranian President threatened to disrupt oil shipments from neighboring states if Washington continued to press all countries to stop buying Iranian oil.

Today, USD-INR pair is expected to quote in the range of 68.50 and 69.05, it added.

Pre-market: The Nifty50 is likely to open flat with a positive bias on Thursday tracking muted trend seen in other Asian markets. The index closed 70 points higher at 10,769 on Wednesday.

Trends on SGX Nifty indicate a flat opening for the broader index in India, a gain of 2 points or 0.02 percent. Nifty futures were trading around 10,775-level on the Singaporean Exchange.

Asian stocks got off to a cautious start on Thursday as investors remained nervous amid a looming deadline for Washington’s proposed tariffs on Chinese imports, leaving financial markets in a state of anxious uncertainty, said a Reuters report.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.03 percent after declining 0.4 percent the previous day. Japan’s Nikkei was down 0.1 percent, South Korea’s KOSPI was flat and Australian stocks rose 0.4 percent.

Oil prices eased on Thursday after US President Donald Trump sent a tweet urging OPEC to reduce prices for crude.