Sensex ends 200 points higher, Nifty above 11,400; banks, pharma surge

CNBC

Market at Close: Bulls took the momentum back from bears on Tuesday as benchmarks ended the day on a strong note, courtesy a surge in banks and pharmaceuticals among others. An uptick in midcaps, too, helped the market close in the green. The Nifty managed to reclaim 11,400, while the Sensex ended over 200 points higher. This happened even as the rupee touched an all-time low during the day and hovered around 69.85 levels at the time of equity benchmarks closing. 

Gains were largely led by banking names as the Bank Nifty ended around a percent higher. Additionally, pharmaceuticals, automobiles, energy and IT names were the top gainers. The Nifty Midcap index was higher by a percent. 
At the close of market hours, the Sensex is up 207.10 points or 0.55% at 37852.00, while the Nifty closed up 79.30 points or 0.70% at 11435.10. The market breadth is still negative as 1,287 shares advanced, against a decline of 1,370 shares, while 160 shares were unchanged.
Buzzing: Shares of Sun Pharmaceutical Industries added 8 percent as company beat analysts' estimates as it has reported net profit in the quarter ended June 2018.
The company has reported a consolidated net profit of Rs 982.8 crore in the first quarter ended June, on strong India and US sales. In the same quarter last year, it had reported a net loss of Rs 423 crore.
Revenues for Q1FY19 rose 16.7 percent YoY to Rs 7,423.9 crore from Rs 6,360.8 crore in the year-ago period.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) margin for the quarter was 21.3 percent.
Earning Reaction: Share price of Punjab Alkalies and Chemicals rose 2 percent as company turned profitable in the quarter ended June 2018.
The company has reported net profit at Rs 27.8 crore against loss of Rs 3.1 crore in a year ago period. Revenue rose 61.8 percent at Rs 101.3 crore versus Rs 62.6 crore.
The company had posted net loss of Rs 1.42 crore in Q4FY18.  
Buzzing: Shares of Allahabad Bank fell 8 percent as company reported net loss of Rs 1,944 crore for the quarter ended June 2018.
The company had reported net profit of Rs 28.8 crore in the same quarter last fiscal.
Gross NPA was flat at 15.97 percent, while net NPA was down at 7.32 percent, QoQ. Net Interest Income (NII) rose 37 percent at Rs 1,704 crore against Rs 1,243 crore.
Rupee outlook: “While we envisaged rupee possibly breaching the 70/USD mark by October, it breaching the 70 levels today reflects the fact that we will likely remain fragile and dependent on global noises and will follow global forex suit. On the back of global market turmoil and emerging domestic vulnerabilities, rupee can further see new low levels against the dollar from here on unless we see some stability in global FX space on geopolitical front. The central bank is not expected to target any level but will likely intervene to ease volatility in the forex market. However, we do not rule out any preventive policy action or announcement to contain the recent sharp volatility in INR,” Sajal Gupta, Head forex & Rates Edelweiss Securities said in a statement. 
Govt view on rupee: The fall in the rupee was due to external factors and there was no need to worry at this stage, a senior finance ministry official told television channels on Tuesday.
The external factors were expected to ease, Subhash Chander Garg, economic affairs secretary at the ministry of finance, told reporters.
Buzzing stock: Shares of Allahabad Bank fell 3.6 percent intraday Tuesday as company reported net loss of Rs 1,944 crore for the quarter ended June 2018.
The company had reported net profit of Rs 28.8 crore in the same quarter last fiscal.
Meanwhile, company's net loss declined from Rs 3,509.63 crore reported in Q4FY18.
Gross NPA was flat at 15.97 percent, while net NPA was down at 7.32 percent, QoQ.
Market Update: Bulls are in control of today’s session so far, as the Sensex rose over 200 points, while the Nifty also surged past 11,400. A big recovery in banks, along with a surge in IT, pharma, energy and auto names is helping the bulls get the grip back. 
Midcaps, too, are trading in the green, with the Nifty Midcap up over half a percent. Among shares, Axis Bank, Yes Bank, UltraTech Cement and Tata Motors are the top gainers, while Adani Ports, Vedanta, and UPL were the top losers. 
At 12:33 hrs IST, the Sensex is up 233.63 points or 0.62% at 37878.53, and the Nifty up 79.20 points or 0.70% at 11435.00. The market breadth is negative as 1,164 shares advanced, against a decline of 1,210 shares, while 126 shares were unchanged.   
Rupee recovers: After breaching the psychological mark of 70 per US dollar, the rupee has staged a recovery of around 35 paise and trading near 69.77 level. Experts believe that a possible intervention by the Reserve Bank of India (RBI) could have stemmed the rupee’s fall.
The currency on Tuesday touched an all-time low of 70.08 to the US dollar. With this, the currency has depreciated around 10 percent in 2018 so far. It had opened marginally higher at 69.85 against the greenback on Tuesday morning.
Analysts attributed the weakness in Turkish lira as one of the key reasons for rupee to be under pressure. This has strained emerging market currencies such as India.
Prior to this, the currency ended 110 paise lower at 69.93 on Monday against its Friday's close of 68.83, which was a biggest single session decline against dollar since September 3, 2013.
Expert view on rupee at 70: “The rupee’s fall today was largely due to domestic reasons. Previous resistance for the currency was 69.50 and a fall below that triggered stop losses from importers. There is lot of panic demand seen from importers…the next short-term resistance is seen at 70.50, while the important resistance to watch out for the market will be 71 per dollar,” Rushabh Maru—Research Analyst at Anand Rathi Share and Stock Brokers, told Moneycontrol.
Rupee hits 70: The Indian rupee on Tuesday touched an all-time low, breaching the psychological mark of 70 per US dollar.
The currency touched an all-time low of 70.08 to the US dollar.   
Market Update: After a weak start on Monday, bulls are looking to take back the mantle as the Sensex rose over 150 points, while the Nifty reclaimed 11,400-mark. Banks are leading the recovery, with the Bank Nifty and PSU bank index gaining a percent as well. A rally in midcaps too is aiding the positive sentiment. Consumer-stocks are also trading in the green, led by gains in ITC. BSE smallcap and midcap indices outperformed the benchmarks with 0.5 percent gain. Among shares, Tata Steel is up over a percent on the back of positive numbers for the June quarter. Axis Bank, UltraTech Cement and GAIL are the other gainers, while L&T, TCS and UPL have lost the most.
Market Opens: It’s a positive start to the market on this Tuesday morning, with the Nifty trading around 11,400 in the opening tick, while the Sensex gained 100 points.
At 09:18 hrs IST, the Sensex was up 110.66 points at 37,755.56, and the Nifty gained 30.30 points at 11,386.10. About 654 shares have advanced, 352 shares declined, and 67 shares are unchanged. 
Axis Bank, Asian Paints, Zee Entertainment, Titan, Hero Motocorp, HDFC, Page Industries are among the major gainers, while losers include L&T, TCS, IndusInd Bank, Vakrangee, Jet Airways and Gati. Nifty Bank gained 0.5 percent. 
Rupee Opens: Indian rupee opened marginally higher at 69.85 per dollar on Tuesday, after ending at an all-time closing low the day before.
The rupee ended 110 paise lower at 69.93 on Monday against its Friday's close of 68.83, which is a biggest single session decline against dollar since September 3, 2013.
The fall in rupee was mainly impacted by drop in Turkish Lira, which helped the US dollar to gained strength on the back of fears that economic crisis in Turkey could spread to other global economies.
The technical pattern indicates that the rupee could further depreciate towards Rs 71 per dollar.
Market at pre-open: Equity benchmark indices have a positive start in the pre-opening trade on Tuesday, with Nifty trading around 11,400 mark.
At 09:02 hrs IST, the Sensex is up 91.74 points or 0.24% at 37736.64, and the Nifty up 43.50 points or 0.38% at 11399.30.
Page Industries, Tata Steel, Infosys, SBI, HDFC Bank, ITC are trading higher in the pre-opening trade.