Sensex ends lower, Nifty fails to hold 11,600; Midcap index outperforms

CNBC

Market Closing

Benchmark indices reversed some previous day's gains on July 12 as traders turned cautious ahead of Infosys' earnings and economic data due later today.
The BSE Sensex was down 86.88 points at 38,736.23 and the Nifty50 fell 35.20 points to 11,547.70.
The broader markets outperformed frontliners with the Nifty Midcap and Smallcap indices rising 0.46 percent and 0.33 percent respectively.
Market Update:
Benchmark Indices slipped past day's high and were trading in the red.
Sensex was down 68.13 points or 0.18 percent at 38,754.98, and the Nifty was down 23.90 points or 0.21 percent at 11,559.00. About 1104 shares have advanced, 1230 shares have declined, and 121 shares are unchanged.
Vedanta, Asian Paints, Sun Pharma are among the top earners, while ONGC, Coal India and Wipro were the biggest losers.
On the sectoral front, all but four sectors were trading in the green. Pvt bank stocks were the biggest losers, down 0.37 percent on the Nifty. Metal stocks were the biggest winners, up 0.70 percent
IndusInd Bank Earnings
Private sector lender IndusInd Bank reported a healthy growth in June quarter earnings after merger of Bharat Financial Inclusion with itself. Hence numbers are not comparable YoY.
Net profit of combined entity stood at Rs 1,432.5 crore for the quarter ended June 2019, rising 38.3 percent compared to Rs 1,036 crore in same period last year.
Net interest income, the difference between interest earned and interest expended, grew by 34 percent to Rs 2,844 crore year-on-year.
Asset quality slightly weakened on sequential basis.
Manpasand Beverages locked at lower circuit
Manpasand Beverages shares were locked at 5 percent lower circuit at Rs 35.15 after promoter has pledged his entire stake.
Promoter Dhirendra Singh, on July 4, created a pledge on its entire shareholding of 44.32 percent with Finquest Financial Solutions Pvt Ltd.
He pledged shares to arrange working capital for the company.
Reliance Power Signs ICA With Lenders
Reliance Power said its six lenders have signed the lnter-Creditor Agreement (ICA) on July 6, 2019.
As per the RBI Circular, 100 percent of its lenders have signed the ICA for the resolution of Reliance Power’s debt.
"Reliance Power has now achieved standstill for 180 days as per the ICA. According to the RBI Circular, the Resolution Plan of company is to be implemented within 180 days. All 6 Lenders of Reliance Power’s subsidiary Vidarbha Industries Power Limited (VIPL), 600 MW Butibori Power Project near Nagpur in Maharashtra, have also signed ICA giving VIPL a 180—day timeframe to implement a resolution plan," company said.
Fund Raising
Shriram Transport Finance Company will raise up to $250 million from global markets to augment its on-lending programme.
The bond issuance committee of the company on Thursday approved the issuance of $250 million (over Rs 1,700 crore) senior secured notes under its $2000 million global medium term note programme, Shriram Transport Finance Company (STFC) said in a regulatory filing.
The company will use the proceeds for onward lending and other activities as may be permitted by the ECB directions, it said. 
GNA Axles Rallies 7%
Company reported a healthy 30 percent year-on-year growth in June quarter profit at Rs 18.2 crore against Rs 14 crore in same period last year.
Revenue from operations grew by 21.4 percent to Rs 258.2 crore from Rs 212.6 crore YoY.
ITC Chairman Speaks At AGM
Diversified conglomerate ITC will foray into new categories and sub-segments in FMCG vertical which will be supported by multi-dimensional investments and strategic opportunities for acquisitions, its Chairman Sanjiv Puri said.
Addressing the company's shareholders at its annual general meeting, Puri said the company is seeking to be an engine of growth for Indian economy through a vibrant portfolio of future-ready businesses.
"Today, around 25 percent of ITC's segment revenue is from newer FMCG businesses...To accelerate growth in the FMCG businesses, the endeavour is not only to fortify the existing categories towards delivering industry leading performance but also to foray into newer categories and sub-segments," he said. 
Expert on KPR Mill Buyback Withdrawal
KPR Mill due to new tax proposal in Finance Bill announced withdrawal of buyback of 37 lakh shares announced in June.
JN Gupta, Former ED at SEBI told CNBC-TV18 that KPR Mill will have to approach capital market regulator for an exemption.
"Once letter of offer is filed & public announcement made, buyback can't be withdrawn. Company can’t withdraw buyback once record date has passed," he said.
Nabard To Raise Rs 55,000 Crore From Market In FY20
Nabard said it plans to raise about Rs 55,000 crore from the market in the current fiscal to fund its business growth and also support various agricultural and rural development schemes of the government.
"The borrowing from the market will be similar to last financial year. We intend to raise about Rs 55,000 crore through the public platform from the domestic market in 2019-20," Nabard chairman Harsh Kumar Bhanwala said here.
National Bank for Agriculture and Rural Development (Nabard) has already raised Rs 12,000 crore from the market in the first quarter of the current financial year, he said. 
Quess Corp on Buyers' Radar
Share price of business service provider Quess Corp jumped over 13 percent after the company said its board approved preferential issue of 7.54 lakh equity shares to Amazon.com NV Investment Holdings LLC, a category III foreign portfolio investor.
The company will hold an extraordinary general meeting (EGM) of the company on 8 August 2019 for seeking approval of the members for the aforementioned preferential issue.
Insurance Stocks Rally 2-7%
Life insurance stocks gained 2-7 percent intraday after these private players reported healthy growth in annual premium equivalent (APE) in June.
SBI Life Insurance Company rallied 3.4 percent, HDFC Life Insurance Company 3.46 percent, ICICI Prudential Life Insurance Company 1.84 percent and Max Financial Services climbed 7.4 percent.
"Private sector players reported 24 percent YoY growth in individual APE in June 2019, gaining share from LIC. Overall industry growth was 13 percent as LIC was flat YoY," Kotak Institutional Equities said in its report.
Market Update:
Benchmark indices continued to consolidate in late morning deals as traders remained cautious ahead of June CPI inflation and May factory data due later today.
The street will also closely watch Infosys and IndusInd Bank's June quarter earnings scheduled to be announced later in the day.
The BSE Sensex was up 29.05 points at 38,852.16 and the Nifty50 rose 8 points to 11,590.90.
KPR Mill Down 2% on Withdrawal of Buyback
Company informed exchange that it has filed with SEBI its communication conveying that the increase in the amount of buyback obligation due to the tax proposal in the Finance Bill 2019 was neither contemplated nor prevailing at the time of the consideration and the approvals of the board and shareholders.
"We are not permitted to meet the buyback obligations beyond the amount approved by the Board of Directors and Shareholders of the company and the same can also be effected only with the borrowed funds, which is prohibited by law. In the above circumstance, we are unable to file the 'Letter of Offer ' and go forward with the proposal, which has been intimated to SEBI," it added.
Delay in monsoon dents June fertiliser sales for the industry
Total Industry volume is down 3.4 percent to 4.1 million tonne due to 15-20 days delay in sowing as a result of late arrival of monsoon. Urea and Di ammonium phosphate (DAP) sales are flat at 2.8 million & 1 million tonne respectively; Complex is down 11 percent to 0.86 million tonne. Single superphosphate volumes are up 3 percent to 0.6 million tonnes. Industry domestic sales are down 8 percent whereas imports are up 27 percent led by 69 percent increase in Urea. Source: Prabhudas Lilladher Report.
ACC, Ambuja Cements Rally 2%
ACC and Ambuja Cements rallied 2 percent intraday after Bank of America Merrill Lynch upgraded and raised price targets.
The global brokerage house upgraded ACC to neutral from underperform rating and raised price target to 1,695 from 1,586, implying 9 percent potential upside from current levels.
It also upgraded Ambuja Cements to buy from neutral and raised price target to Rs 261 from Rs 238, which implies 23 percent potential upside from current levels.
Gold Update:
Gold prices rose and were on track to post a weekly gain, consolidating above $1,400 as renewed Sino-US trade tensions amid global growth jitters and prospects of an interest rate cut by the US Federal Reserve stoked safe-haven demand.
US gold futures were up 0.09 percent at $1,408 an ounce. Source: Reuters.
HDFC Shares Gain after CLSA Raises Target
Housing Development Finance Corporation shares gained a percent intraday after CLSA raised price target of its top pick.
"We maintain buy call and raised price target to Rs 2,730 from Rs 2,500, implying 20.7 percent potential upside after analysing Annual Report of the company," CLSA said, adding the company is capitalising on affordable housing opportunity.
It is well placed to play housing demand & is among top picks, the brokerage said.
NTPC Gains after CLSA Retains Buy
NTPC shares gained more than a percent intraday after global brokerage CLSA retained its buy call with a target price at Rs 157, implying 22 percent upside on potential SJVN merger.
"SJVN acquisition if happens is value-accretive M&A & better energy mix with renewables," the research firm said, adding acquisition would help NTPC triple its hydro capacity & double the share of renewables.
SJVN could double hydro capacity with its pipeline of 2.7 GW of regulated hydro assets, said CLSA which like NTPC's merger & acquisition (M&A) strategy that is focused on acquiring operating regulated assets
Block Deals
Power Finance Corporation's 6.3 crore shares (representing 2.4 percent of total equity) worth Rs 794 crore exchanges hands in two block deals on NSE at an average price of Rs 125 per share, reports CNBC-TV18.
Monsoon Update
Met Department told CNBC-TV18 that cumulative monsoon deficit as of July 11 is at 12 percent and there is an agriculture shortfall in Andhra Pradesh.
"UP, Bengal & Northeast will witness strong rain through next week. We are not revising rain forecast, continue to expect monsoon with 96 percent (+/-4%) long term average," the department said.
Indian Acrylics' Expansion
The company said it is now in process of adding two more yarn spinning plants with 10,000 spindles and 20,000 spindles capacity respectively. The building work has been completed for 10,000 spindles and in this plant company has already set up 6500 spindles during current year. The work to complete the remaining 3500 spindles is in progress and it is scheduled to achieve commercial production by Sept 2019.
Just In
Thales, a global leader in digital security, and Tata Communications are working together to develop a secure global IoT connectivity solution.
Tata Communications MOVE mobility and IoT platform and Thales’s T-Sure warranted digital identity offering is set to unlock the value in data generated by connected devices such as cars and trucks, while maintaining the integrity and security of IoT data, Tata Comm said in its BSE filing.
Himachal Futuristic Communication gains 2%
Himachal Futuristic Communication shares gained 2 percent intraday after its subsidiary bagged order from Bharat Electronics.
"Subsidiary HTL has received a purchase order worth Rs 198.82 crore from state-owned company Bharat Electronics," the fibre optic cable manufacturing company said in its BSE filing.
The order is for supply of various types of optical fibre cables.
Crude Update
Oil prices rose as US oil producers in the Gulf of Mexico cut more than half their output in the face of a tropical storm and as tensions continued in the Middle East.
Brent crude futures were up 0.6 percent, at $66.89 per barrel. The international benchmark settled down 0.7 percent on Thursday after hitting its highest since May 30 at $67.52 a barrel.
US West Texas Intermediate (WTI) crude futures were up 0.6 percent, at $60.54 a barrel. The US benchmark closed 0.38% lower on Thursday after marking its highest since May 23 at $60.94. Source: Reuters.
Market Opening:
Benchmark indices extended previous day's gains amid volatility. The BSE Sensex rose 69.59 points to 38,892.70 and the Nifty50 climbed 21.10 points to 11,604.
Eveready Industries in focus
Yes Bank acquired 39,10,000 (5.38 percent) equity shares of company  and 21,21,903 (2.29 percent) shares by invoking pledged on promoters holding.
Kotak Raises ICICI Bank Target
Kotak Institutional Equities maintained buy call on ICICI Bank and raised price target to Rs 510 from Rs 460 apiece as balance sheet is getting stronger and valuation is inexpensive.
"Business is back on track to deliver normalised levels of return on equities by FY20-21," the brokerage said, adding there’s negligible risk in the corporate portfolio.
Technical Outlook
"Technically,   the Nifty could now face resistance at 11,627-11,648 band, while 11,536 could provide support. Auto, Metals and Healthcare indices could do well.  Among stock under coverage, Majesco, SBI, Dr Reddys, Birla Corp, Bharat Forge, Indusind Bank, DCB Bank could do well," Deepak Jasani, Head Retail Research, HDFC Securities told Moneycontrol.
Market Outlook
Indian markets are expected to open flat tracking mixed global cues. Global news flows and Q1 earnings are expected to remain key monitorables, going ahead, ICICI Direct said.
On July 11, domestic markets ended positively on the back of strong global cues and US dollar weakness. US markets ended mixed on the back of marginally higher US consumer inflation and weakness in technology stocks.
Rupee Opening
The Indian rupee has opened lower at 68.45 against the US dollar, compared to Thursday's close of 68.44 a dollar.
Market Pre-Opening
Benchmark indices were higher in pre-opening trade with the Sensex rising 310.36 points to 39,133.47 and the Nifty50 climbing 13.30 points to 11,596.20.
Results on July 12
Infosys, IndusInd Bank, Karnataka Bank, Sangam (India), TRF, Hathway Cable & Datacom, GNA Axles, Infomedia Press, 3i Infotech and Reliance Industrial Infrastructure will announce their quarterly earnings today.