Nifty gains for 3rd day but fails to hold 11,700; Midcap index underperforms

CNBC

Market Closing:

Benchmark indices continued to gain for third consecutive session with the Nifty reclaiming 11,700 level intraday, driven by banks, FMCG and IT stocks.
The BSE Sensex was up 84.60 points at 39,215.64 and the Nifty50 rose 24.90 points to 11,687.50 while Nifty Bank gained 165 points.
But the market breadth was in favour of bears as about 1,350 shares declined against 1,099 advancing shares on the BSE.
Home First Finance mulls Rs 1,500-crore IPO - here's all you need to know
Housing finance firm Home First Finance Company (HFFC) is mulling worth Rs 1,500-crore initial public offer, reports suggest.
According to a report in The Economic Times, the Mumbai-based private lender plans to offload some existing investor stake and also raise primary capital via its initial public offering (IPO). The sales procedure would be carried out by Credit Suisse, Kotak Mahindra Capital and ICICI Securities. Read more
Market Update:
Benchmark indices were trading in the positive, with Sensex up over 100 points, while Nifty was near 11,700 levels.
Sensex was up 110.05 points or 0.28 percent at 39,241.09, and the Nifty was up 28.40 points or 0.24 percent at 11,691. About 1062 shares have advanced, 1246 shares declined, and 133 shares are unchanged.
Kotak Mahindra, Indiabulls Housing, HCL Technologies were the biggest gainers, while Yes Bank, ONGC and Eicher Motors were the top losers.
On the sectoral front, all but auto and pharma stocks were trading in the red. FMCG stocks were the top gainers, up 0.78 percent on Nifty.
Oil Prices Gain
Oil prices rose after steep falls in the previous session, although US crude trailed gains for international benchmark Brent following data showing US crude inventories fell less than expected.
West Texas Intermediate crude futures were up by 0.19 percent at $57.73, having fallen 3.3 percent on Tuesday.
Brent crude futures were up 0.4 percent at $64.62. They ended down 3.2 percent in the previous session. 
MCX Shares Rally 8%
Shares of Multi Commodity Exchange of India rallied 8 percent intraday after reporting steady growth in June quarter earnings, driven by revenue and operating income.
The commodity exchange said its consolidated net profit increased by 496 percent to Rs 43.70 crore and revenue from operations jumped 9 percent to Rs 79.45 crore compared to year-ago.
Company had reported an exceptional loss of Rs 23.80 crore in June quarter 2018.
Edelweiss Financial Services Under Pressure
Shares of Edelweiss Financial Services fell as much as 5 percent intraday after reports emerged that the company is planning to offload some stake in its wealth business.
According to a report in The Economic Times, the company is in advanced talks with US-based Kora Management to sell 20 percent stake in Edelweiss Wealth Management for a consideration of about Rs 2,000 crore.
“Edelweiss will raise Rs 2,000 crore by selling this stake and it will help in meeting debt obligations during this quarter,” a person familiar with the matter told the daily.
Suzlon Energy Under Pressure
Shares of Suzlon Energy wiped off as much as 9 percent intraday after the company failed to furnish the principal amount on the outstanding bonds worth $172 million.
According to Suzlon's exchange disclosures, the outstanding payment was part of a total bond issuance of $546.91 million.
The stressed wind turbine maker added that it is working on a holistic solution for its debt and continues to be in discussions with various stakeholders in relation to its outstanding debt.
DCB Bank Tanks 14%
DCB Bank shares plunged 14 percent intraday after lender reported dismal set of earnings for quarter ended June 2019.
Profit during the quarter grew by 17 percent to Rs 81.1 crore and net interest income increased 11.7 percent to Rs 304.8 crore compared to year-ago period.
A CNBC-TV18 poll estimates for profit were Rs 93.7 crore and net interest income Rs 313.6 crore for the quarter.
Fall in credit growth, elevated provisions and weak asset quality with rising slippages hit earnings in June quarter.
Nifty Holds 11,650:
Benchmark indices traded moderately higher amid volatility. The BSE Sensex was up 31.43 points at 39,162.47 and the Nifty50 rose 11.40 points to 11,674.
The market breadth was in favour of bulls as about 824 shares advanced against 577 declining shares on the BSE.
KNR Constructions Climbs 4%
KNR Constructions shares rallied 4 percent intraday after company received work order from Navayuga Engineering.
Company in its BSE filing on July 16 said it has received a work order for Rs 847.34 crore from Navayuga Engineering Company Limited, Hyderabad.
The order is on back to back basis for the balance work of 'Palamuru Rangareddy Lift Irrigation Scheme - Package 10 for the formation of Venkatadri Reservoir bund at Vattem (V), Bijinepally (M), Nagarkurnool District.
Market Outlook
Indian markets are expected to open weak on the back of renewed concerns over US-Sino trade tensions. Going ahead, market participants are expected to keenly watch Q1 earnings traction and global news flows, ICICI Direct said.
Domestic markets ended positive on July 16 ahead of key Q1 corporate earnings. US markets ended marginally lower following renewed uncertainty over US-China trade talks.
Technically, the brokerage said upsides look limited as on weekly expiry maximum Call OI at 11700 strike that may act as hurdle on upsides.The highest Put base is at 11,300 strike with almost 23 lakh shares while the highest Call base is at the 12,000 strike with 32 lakh shares.
KRBL in focus
CARE revised its ratings from to A1+ (under credit watch with negative implications) from A1+.
The rating agency said this revision is due to provisional attachment of properties by the Directorate of Enforcement of Punjab, valuing about Rs 15 crore, on July 4, in connection with the Embraer deal case.
BHEL Gets Contract Termination Notice from NMDC
Bharat Heavy Electricals received a notice of termination from NMDC for the construction of raw material handling system at NMDC’s steel plant in Chhattisgarh.
Company has proposed to take up the afore mentioned matter through redressal mechanism available for dispute resolution between state run companies.
Pre-opening Trade:
Pre-opening indicated that benchmark indices are expected to see volatile trade ahead. The BSE Sensex was up 71.88 points at 39,202.92 and the Nifty50 rose 59.40 points to 11,722.
DCB Bank in focus after Q1 Earnings
DCB reported a dismal set of results with a profit miss, mainly due to a further deceleration in credit growth/NIMs and subdued fees, said Emkay which maintained sell rating on the stock with a target price of Rs 170, mainly due to deteriorating asset quality, weak liability profile and expensive valuations for a sub-optimal RoA of 1 percent.
GNPA ratio increased 12bps QoQ to around 2 percent, mainly due to stress in corporate agri portfolio. Credit growth decelerated further to 13 percent YoY from 30 percent a year ago and 16 percent in FY19, mainly as a result of the bank's conscious stance on the corporate front and a moderation in the SME/retail book.
Dilip Buildcon In Focus
The project  four laning of Mahulia-Baharagora-JH/WB boarder section of NH-33 in Jharkhand under NHDP Phase -III on EPC mode has been provisionally completed, Dilip Buildcon said, adding the Provisional Completion Certificate has been issued by the authority on July 16 and has declared the project fit for entry into operation as on July 05.
Asia Shares Slip
Asian shares drifted lower after a lacklustre performance by Wall Street, while the dollar got a lift from robust US retail data and a Brexit-driven dive in the pound.
Oil prices also took a spill on hints US tensions with Iran could be easing and as data showed stockpiles fell by less than expected last week.
Japan's Nikkei fell 0.4 percent, China Shanghai Composite 0.25 percent and Hong Kong's Hang Seng was down 0.5 percent. South Korea's Kospi slipped 1 percent. Source: Reuters.
Dilip Buildcon Bags Order
Dilip Buildcon's joint venture - Shaanxi Road & Bridge Group Co. Ltd. has received EPC project for construction of extra-dosed bridge across Sharavathi Backwaters and approaches between Ambargodu and Kalasavalli of NH-369E in the state of Karnataka.
Wall Street Slips
US stocks edged lower as quarterly results from banks added to concerns about lower interest rates dampening their profits, while comments from US President Donald Trump on trade also dragged down Wall Street's major indexes.
JPMorgan Chase & Co and Wells Fargo & Co beat quarterly profit estimates but reported weaker net interest income, pointing to rising deposit costs. Those results followed Citigroup Inc's results on Monday, in which the bank reported a drop in its net interest margin.
Stocks also moved lower after Trump said there was a long way to go with China on trade and threatened to put tariffs on another $325 billion of Chinese goods.
The Dow Jones Industrial Average fell 23.53 points to 27,335.63, the S&P 500 lost 10.26 points to 3,004.04 and the Nasdaq Composite dropped 35.39 points to 8,222.80.