Nifty ends around 11,850, Sensex up 157 points; metal stocks gain

26 Jun 2019

Market Close: Indian indices ended higher for the second consecutive session on June 26 with Nifty ended around 11,850.

At close, Sensex was up 157.14 points at 39,592.08, while Nifty was up 51 points at 11,847.50. About 1418 shares have advanced, 1051 shares declined, and 170 shares are unchanged.

Vedanta, JSW Steel, Power Grid Corp, Sun Pharma and Hindalco Industries were among major gainers on the Nifty, while losers were Britannia Industries, Indiabulls Housing, Infosys, IndusInd Bank and Bharti Airtel.

Among sectors, except IT and FMCG all other sectoral indices ended in the green led by pharma, metal, infra, bank and energy. Midcap has outperformed the major indices with 0.8 percent gain, while smallcap index gained 0.5 percent.

Crude Update: Oil prices hit their highest level in nearly a month on Wednesday, buoyed by an outage at a major refinery on the US East Coast and industry data that showed US crude stockpiles fell more than expected.

Rupee at day's high: The Indian rupee is trading at day's high level on June 26. It is trading higher by 8 paise at 69.26 per dollar against previous close of 69.34.

Market Update: Benchmark indices are trading higher in the afternoon trade with Nifty above 11,800.

At 13:40 hrs IST, the Sensex is up 102.16 points or 0.26% at 39537.10, and the Nifty up 34.20 points or 0.29% at 11830.70. About 1306 shares have advanced, 934 shares declined, and 139 shares are unchanged.

Mindtree Open Offer Fully Subscribed

The open offer launched by L&T for midcap IT company Mindtree has been fully subscribed, reports CNBC-TV18 quoting sources.

About 31 percent shareholders have tendered shares in open offer, the report said.

Open offer is scheduled to be closed on June 28.

Torrent Power Hits 52-week High

Torrent Power shares rallied 2.55 percent intraday to hit a 52-week high of Rs 279 after Gujarat Electricity Regulatory Commission approved power procurement arrangement.

Company said GERC approved the power procurement arrangement of 278 MW between the company's UNOSUGEN power plant and its Licensed Distribution Business for cities of Ahmedabad, Gandhinagar and Surat.

The approval, with certain stipulations, is for the balance life of the plant i.e. 19 years, it added.

HSBC Survey on Indian Companies

Indian businesses have the second most optimistic outlook after Indonesia, as almost nine in ten (89 per cent) Indian firms expect to grow over the next two years, says an HSBC survey.

The survey on more than 2,500 companies across 14 markets in the world showed that businesses in India are very optimistic about their growth prospects, despite subdued macro-economic conditions.

In the last fiscal, Indian economy grew at a 5-year low pace of 6.8 percent. The survey showed that Indian businesses have the greatest investment appetite across the 14 markets and none mentioned any plans to decrease their level of investment. Source: PTI

HDFC MF Increases Stake in TV Today

Shares of English-Hindi news television network TV Today jumped 11 percent intraday after HDFC Mutual Fund increased its stake in the company by 2 percent.

Schemes of HDFC Mutual fund, which earlier held 5 percent stake in TV Today Network, bought 12.78 lakh shares, amounting to 2.14 percent shareholding in the company, as per a regulatory filing by the MF house.

Post transaction, HDFC Mutual Fund's stake in TV Today now stands at 7.14 percent, increased from 5.004 percent earlier.

Buzzing: TVS Motor Company shares fell nearly a percent on June 26 after global brokerage house Citi maintains sell rating on the stock.

ICRA Reaffirms Credit Rating

Edelweiss Financial Services shares gained more than a percent intraday after ICRA reaffirmed its credit rating for company's commercial paper and non-convertible debentures.

The financial services provider informed exchanges that ICRA re-affirmed its credit rating of A1+ assigned to the commercial paper programme of Rs 6,350 crore and short-term non-convertible debenture programme of Rs 100 crore of the company.

The rating of A1+ indicates very strong degree of safety regarding timely payment of financial obligations

Acquisition

Persistent Systems said it acquired European salesforce consulting partner youperience.

"Together with previously acquired Salesforce Platinum Consulting Partner PARX, the professionals from these two boutique Salesforce shops combined with Persistent’s existing Salesforce experts will further strengthen the company’s ability to provide exceptional Salesforce outcomes to its global customers," it added.

Market Update: Benchmark indices recovered from the morning lows with Nifty trading above 11,800 mark.

At 09:55 hrs IST, the Sensex is up 127.88 points or 0.32% at 39562.82, and the Nifty up 30.30 points or 0.26% at 11826.80. About 948 shares have advanced, 532 shares declined, and 77 shares are unchanged.

Buzzing: Shares of SBI Life Insurance Company rose 6 percent in the early trade on June 26 after foreign research house Deutsche Bank has maintained buy rating on the stock with a target of Rs 830 per share.

Dollar Update: The dollar edged up from a three-month low on Wednesday, as investors dialled back expectations for aggressive US rate cuts next month but broader conviction the Federal Reserve will need to ease policy soon capped greenback gains.

Crude Update: Oil prices rose over 1% on Wednesday to hit their highest in nearly a month as widely-watched data showed U.S. crude stockpiles fell more than expected, underpinning a market already buoyed by worries over potential US-Iran conflict.

Market Opens: It is a weak opening for the Indian indices on June 26 with Nifty around 11,750 level.

At 09:16 hrs IST, the Sensex is down 63.84 points or 0.16% at 39371.10, and the Nifty down 17.30 points or 0.15% at 11779.20. About 230 shares have advanced, 378 shares declined, and 30 shares are unchanged.

NTPC, Bharti Airtel, Axis Bank are among major gainers on the Indices, while losers are UPL, Zee Entertainment, Dr. Reddy's Lab, IndusInd Bank, HDFC, Titan Company and Maruti Suzuki.

Among sectors, selling seen in the FMCG, IT, metal and PSU bank, while buying seen in the auto, energy, infra and pharma.

Rupee Opens: The Indian rupee opened lower at 69.40 per dollar on Wednesday against Tuesday's close of 69.34.

Market at pre-open: Benchmark indices are trading flat to negative in the pre-opening session.

At 09:03 hrs IST, the Sensex is down 8.53 points or 0.02% at 39426.41, and the Nifty down 28.70 points or 0.24% at 11767.80.

Asian markets trade lower: Asian stocks slipped on Wednesday and the dollar pulled back from three-month lows after Federal Reserve officials tempered expectations in the markets for aggressive monetary easing.

CLSA on Sun Pharma

Buy rating, target at Rs 520 per share

De-focus on tail brands leading to slow growth but improved profitability

Mkt share loss is largely driven by weak growth in anti-infectives

Credit Suisse on PI Industries

Maintain outperform, target at Rs 1,325 per share

Agrochem markets are seeing headwinds on account of weather

Deutsche Bank on SBI Life

Maintain buy rating, target at Rs 830 per share

Mgmt sounded confident of achieving higher growth in FY20

Citi on TVS Motor

Maintain sell call, target cut to Rs 430 from Rs 455 per share

Cut our gross margin estimates for higher raw material prices

EPS estimates cut by 2-6% for FY20-22

Citi on Tyres

Countervailing duty on Chinese tyre imports indicates Govt’s support to India

Apollo Tyres benefits the most; truck & bus tyres form 60% of its domestic rev

For Ceat, this segment contributes ~32% of total revenues

New regulation clearly is an incremental positive

Citi on Cements

Volume pullback likely temporary; price correction seasonal

Cement prices in Apr-Jun are higher by 7-15% vs Jan-Mar

Cuts are much lower than the hikes over the past few months

Expect industry demand growth at 6% in FY20 & 8% beyond that

Expect 4-8% volume decline for ACC, Ambuja Cements, Shree Cements & Dalmia Cements

UltraTech should likely report marginally positive growth

Would use the recent correction as buying opportunity

Reiterate buy on UltraTech, ACC, Ambuja & Dalmia

Neutral call on Shree Cements

Citi on Gas Sector

May LNG imports at 1.9 mmt, +4%/-4% YoY/MoM

2MFY20 volumes are trending +6% YoY but are up 17% QoQ

Petronet LNG should see a sequential uptick in volumes

Have more comfort on CGDs like Gujarat Gas & IGL

Margins have been comparatively lower at Gujarat Gas & IGL

UBS on India Strategy

Monsoons directly impact around 5% of India’s GVA; trend gradually declining

Monsoons now less significant for inflation owing to policy initiatives

Rural demand slowing, government likely to provide some fiscal support

Water levels in reservoirs slightly below average; still too early to worry

Overweight on cons discretionary & neutral on consumer staples

Our base case is Nifty at 12,000 by December 2019

UBS on Global Markets

Escalation of trade conflict could push global equities down by 20%

Concern about policy effectiveness may take US 10-year yields to 1.3%

Trade war will keep the $ bid despite hurting US growth

Anticipate major changes to our forecasts if trade escalation is not averted

Global growth would be 75 bps lower over 6 quarters if escalation not averted

May face mild ‘global recession’, similar to Eurozone crisis on 1980

Wall Street declines: Wall Street stock indexes fell on Tuesday, led by a sharp selloff in technology shares, as simmering trade concerns and disappointing economic data sent buyers to the sidelines, while the Federal Reserve chairman pushed back on pressure from President Donald Trump to cut interest rates.

SGX Nifty: Trends on SGX Nifty indicate a negative opening for the broader indices in India, a fall of 22 points or 0.19 percent. Nifty futures were trading around 11,770.50-level on the Singaporean Exchange.