Indices close volatile session mixed, Nifty holds 11,550; Mid, Smallcap indices outperform

09 Jul 2019

Market Closing

Benchmark indices closed volatile session on a mixed note after falling sharply in previous two straight sessions due to tax proposals in Budget.

The BSE Sensex rose 10.25 points to 38,730.82 while the Nifty50 fell 2.70 points to 11,555.90.

The broader markets outperformed frontliners with the Nifty Midcap and Smallcap indices rising 0.4 percent each.

Bajaj Finance, Sun Pharma, IOC, Bajaj Finserv and Hero Motocorp were top gainers among Nifty50 stocks, rising 3-6 percent.

Titan Company plunged 12 percent. UPL, GAIL, TCS and Yes Bank fell 2-3 percent.

DHFL Falls 9%

Shares of HFC Dewan Housing Finance Corporation fell 9 percent after a media report indicated that the company is likely to present a proposal for resolution to its lenders on July 11.

DHFL is hopeful to raise Rs 7,000 crore via stake sale to a private equity player.

Sources told CNBC-TV18 Aion Capital and Cerberus Capital are likely in the lead to acquire DHFL stake while DHFL itself also remains in talks with Lone Star & KKR for a potential deal.

ICICI Securities Diversifies Business Model

ICICI Securities said it announced the diversification of its business model by entering into retail asset (loans) distribution business, thereby opening a new revenue stream for the organization.

This service is inclusive of products such as personal loan, home loans, loan against property, auto loans, and credit cards offered by ICICI Bank. I-Sec will earn a distribution commission for selling these products through its online (ICICI Direct platform) and offline channels (network of around 200 branches), it added.

Europe Update

European stocks traded lower as diminished hopes of a rate cut from the US Federal Reserve this month continued to dampen market sentiment.

Germany's DAX fell 1.3 percent. Britain's FTSE was down 0.3 percent and France's CAC slipped 0.7 percent.

Meghmani Organics Climbs 3%

Meghmani Organics shares gained nearly 3 percent intraday after its subsidiary started commercial production of chlormethane.

Meghmani Finechem (MFL) is a material subsidiary of company in which company holds 57 percent stake.

Company said MFL has completed installation of chlormethane (CMS) project with capacity of 40,000 million tonne per annum in the existing caustic chlorine complex situated at GIDC Dahej, in South Gujarat.

"MFL has commenced commercial production in chlormethane (CMS) from July 4, 2019," it added.

Dilip Buildcon To Get Bonus for Early Completion of Road Project in UP

Company said the project - four laning of Lucknow- Sultanpur section of NH-56 - in Uttar Pradesh under NHDP Phase - IV on Hybrid Annuity Basis has been completed.

The completion certificate has been issued by the authority on July 6, 2019 and has declared the project fit for entry into operation as on July 3 and consequently the company is entitled to maximum bonus of Rs 37.90 crore in lieu of earlier completion (188 days prior to the schedule completion date), it added.

Max Financial in Focus

Company said it didn't approach insurance regulator IRDA with any proposal of Axis Bank buying additional 10 percent stake in Max Life.

Reports of IRDA rejecting Axis' 10 percent stake buy in Max Life are incorrect & baseless.

Company reiterated that the long standing Bancassurance relationship between Max Life and Axis Bank continues to be strong and highly productive.

Insurance Deal

Hero FinCorp is likely to place an offer to acquire 100 percent stake in Reliance General Insurance this month, reports CNBC-TV18 quoting sources.

Reliance Capital may seek Rs 5,500-6,000 crore for its 100 percent stake in Reliance General which had sought valuation of Rs 7,500-8,000 crore via IPO.

The IPO was likely to have been shelved, sources said.

Drug Launch

Pharma major Lupin said it launched lmatinib Mesylate tablets, 100 mg and 400 mg .

Its alliance partner Natco had received an approval from the United States Food and Drug Administration earlier.

lmatinib Mesylate is the generic version of Novartis Pharmaceuticals Corporation's Gleevec tablets.

Market Update

Benchmark indices turned volatile in afternoon. The BSE Sensex was down 44.57 points at 38,676 and the Nifty50 fell 18.70 points to 11,539.90.

Under Pressure - InterGlobe Aviation was down 2.7 percent, DHFL 8 percent and REC 12.4 percent.

Mindtree (down 1.85 percent) was off its day's low.

Bajaj Finance Q1 Business Update

The non-banking finance company said it booked 7.3 million new loans during quarter ended June 2019 against 5.6 million in same period last year. "In Q1, company acquired 2.5 million new customers."

Bajaj Finance further said its assets under management (AUM) stood at approximately Rs 1,29,000 crore as of June 2019, increasing significantly by 41.3 percent compared to Rs 91,287 crore as of June 2018 and 11.3 percent compared to Rs 1,15,888 crore at the end of March 2019.

Customer franchise as of June 2019 stood at approximately 36.9 million, which was quite higher compared to 28.3 million in same period last year.

New CTO at Hero Motocorp

The country's largest two-wheeler maker appointed Vikram Kasbekar as its Chief Technology Officer and said Rajat Bhargava will head newly created ‘Emerging Mobility’ business unit.

Rajat Bhargava is currently the head of global business at Hero and Vikram Kasbekar is Hero's executive eirector - Operations.

Market Rebounds

Benchmark indices rebounded after morning sell-off and big crash in last two sessions, backed by short covering.

The BSE Sensex rose 80.75 points to 38,801.32 and the Nifty50 gained 18.50 points at 11,577.10.

Crude Update

Oil prices dipped on demand concerns following the latest signs the US-China trade war is dragging on the global economy, although the potential for conflicts in the Middle East offered support.

Brent crude futures were down 0.11 percent, at $64.04 a barrel. US West Texas Intermediate crude futures were down 0.3 percent, at $57.49 a barrel. Source: Reuters.

Market Update:

Benchmark indices recovered from day's low to trade moderately lower in late morning deals. The recovery was driven by Reliance Industries, ICICI Bank, Bajaj Finance, L&T and Axis Bank.

The Sensex was down 25.66 points at 38,694.91 and the Nifty50 fell 15 points to 11,543.60.

Glenmark Pharma Gains 4%

Glenmark Pharmaceuticals shares rallied 3.6 percent intraday after company received approval from US health regulator for anti-anginal drug.

The US Food and Drug Administration granted its approval for Ranolazine extended-release tablets, which will be available in 500 mg and 1,000 mg strengths.

Ranolazine is a generic version of Ranexa extended-release tablets of Gilead Sciences, Inc. The drug improves blood flow to help the heart work more efficiently.

Inflation Expectations

India's retail inflation likely reached an eight-month high in June on rising food prices, but stayed under the Reserve Bank of India's medium-term target of 4 percent for an eleventh straight month, a Reuters poll predicted.

Another reading below the inflation target will likely support the RBI's decision last month to cut interest rates to boost economic growth that slowed to more than a four-year low in the January-March quarter.

According to the median consensus of 40 economists polled by Reuters between July 4-7, retail inflation rose at an annual rate of 3.20 percent in June, up from 3.05 percent in May. Forecasts ranged between 2.90 percent and 3.84 percent.

Market Update

Benchmark indices fell for a third straight session as a proposed tax on the super-rich continued to rattle the markets, while investors awaited fresh cues from corporate results that kick-off later in the day.

The BSE Sensex fell 179.58 points to 38,540.99 and the Nifty50 declined 59.60 points to 11,499.

The government's proposal to increase the public float by 10 percent, a surcharge on foreign portfolio investors (FPIs) and a 20 percent tax on buyback of securities in the annual budget on July 5 dealt a heavy blow on the stock markets on Monday.

Tata Motors Dips 1%

Tata Motors shares dipped over a percent intraday after global brokerage house CLSA remained bearish on the stock due to multiple headwinds at luxury car maker Jaguar Land Rover.

"We have a sell rating on Tata Motors with a target price at Rs 150, implying 3 percent downside from current levels," the research firm said, adding rising warranty & impairment are concerns.

Rupee Falls 18 Paise:

The rupee declined by 18 paise to 68.84 against the US currency, due to strong dollar demand from banks and importers amid persistent foreign fund outflows.

A strengthening dollar against major currencies overseas and weak domestic equity market weighed on the local unit, forex traders said.

However, softening crude oil prices restricted the rupee's fall, they added.

The rupee opened weak at 69.65 against the US dollar at the interbank forex market. It fell further to quote at 68.84, registering a decline of 18 paise from the previous close. Source: PTI

Market Update:

Benchmark indices remained under pressure in morning with the Sensex falling 167.21 points to 38,553.36 and the Nifty50 declining 55.60 points to 11,503.

The broader markets were mixed in trade with the Nifty Midcap falling 0.16 percent while Smallcap index gaining 0.07 percent.

Market Update:

Benchmark indices came off their early lows. The Sensex was down 70.99 points at 38,649.58 and the Nifty fell 23.30 points to 11,535.30.

The market breadth was balanced as about 671 shares declined against 664 advancing shares on the BSE.

LT Foods in its letter for investors said

Company, is on a growth trajectory and remains fundamentally strong as we continue to work towards strengthening balance sheet and delivering profitable growth. To re-iterate the guidance given during our Q4 2019 earnings: endeavor is to expand EBITDA margins to12.5 percent by the end of the FY2020 and continue efforts going forward as well.

We also aim to reduce our total debt to around Rs.1,500 Crores by the end of FY2020.

Hero Raises Motorcycle prices

The country's largest two-wheeler maker Hero MotoCorp July 8 said it has increased prices of its motorcycles and scooters by up to 1 per cent. The price hike will be with immediate effect, the company said in a statement.

The price increase across the range of two-wheelers has been 1 per cent (of the ex-showroom price), although the exact quantum of the increase will vary on the basis of the model and the specific market, it added.

Gainers and Losers

Titan Company plunged 9 percent, followed by UPL, HDFC, Bajaj Finance and Bajaj Finserv which were down 1.5-2.5 percent.

IOC bucked the trend, rising 3.7 percent. BPCL, Coal India, Yes Bank and ONGC were other gainers.

The BSE Sensex slipped 189.05 points to 38,531.52 and the Nifty50 declined 61.50 points to 11,497.10. About two shares declined for every share rising on the BSE.

Market Opening:

Benchmark indices extended previous day's losses in opening trade. The BSE Sensex fell 69.57 points to 38,651 and the Nifty50 slipped 38.80 points to 11,519.80.

TCS Earnings Poll

Country's largest IT services provider, Tata Consultancy Services (TCS) is expected to deliver steady growth in revenue but there could be pressure on the margin that may impact profitability in the first quarter of FY20. Company will announce its quarterly earnings on July 9.

The constant currency revenue growth could be more than 3 percent with around 20-50 basis points cross currency headwinds, driven by strong order book and retail segment.

Deterioration in Credit Quality

Care Ratings has seen a massive deterioration in the credit quality of the entities it tracks during the first quarter of the current fiscal year.

The modified credit ratio, or the number of upgrades to downgrades, has slipped to a six-year low of 0.8 during the June quarter, the agency said July 8. Source: PTI

Market Pre-Opening Trade

The BSE Sensex rose 124.48 points to 38845.05 and the Nifty50 fell 4.70 points to 11,553.90 which indicated consolidation day going ahead after falling sharply in two sessions.