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Closing Bell
Equity market indices ended with sharp losses following heavy sell-off from foreign institutional investors and as well as from domestic financial institutions. Stocks went into tailspin after the Finance Minister Nirmala Sitharaman clarified in the Lok Sabha that the super-rich surcharge on FPIs announced in the Budget would not be withdrawn.
The Finance Minister told in Lok Sabha that when FPIs register themselves as a trust, it means that they are a body of individuals, and hence, liable to pay higher surcharge on earning more than ₹2 crore. However, such a surcharge is not applicable if they register as companies.
The Sensex after opening marginally higher at 39,058.73, fell thereafter to a low of 38,271.35. The 30-share index ended at 38,337.01, down by 1.44%, or 560.45 points. It ended yesterday at 38,897.46.
The NSE Nifty too fell 177.65 points, or 1.53 per cent, and ended at 11,419.25.
All the sectoral indices such as Auto, Pharma, Banking, IT, Metals and Consumer Durables suffered losses falling between 1 and 3.30 per cent today.
Sensex Stocks
Sensex stocks
MIDCAP LOSERS ON NSE
MIDCAP LOSERS ON NSE
NSE LOSERS
Top Losers on NSE
NSE GAINERS
NSE GAINERS
Sensex, Nifty down over 1 per cent on major sell-off
Equity indices extended their losing spree for the second straight session on sustained selling from domestic investors and foreign financial institutions.
Moreover, the strengthening of crude oil prices also dampened the sentiment.
The Sensex after opening marginally higher at 39,058.73, fell thereafter to a low of 38,337.57.
At 2.40 pm, the 30-share index was being quoted at 38,393.83, down by 503.63 points. It ended yesterday at 38,897.46
The NSE Nifty too fell 157.55 points, or 1.35 per cent, to 11,439.35.
All the sectoral indices such as Auto, Pharma, Banking, IT, Metals and Consumer Durables suffered losses falling between 1 and 3 per cent today.
Mahindra and Mahindra hits two-and-a-half-year low
Shares of automaker Mahindra and Mahindra Ltd fell as much as 2.7 per cent to Rs 581.25, their lowest since December 27, 2016.
Stock broke below a support at Rs 586.23
Related Stories
Mahindra sales fall 6 per cent to 42,547 units in June
Exports dropped 11 per cent to 3,076 units, against 3,466 units in the year-ago month.
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Mahindra announces price increase for personal range of vehicles from July 1
Broker's call
Colgate : Hold (Rs 1,310)
JM FINANCIAL
Q1FY20:Qualitatively better
Colgate’s Q1FY20 report reflects a slight qualitative beat vs a very subdued set of expectations – the latter being the outcome of increased noise-levels around domestic consumption slowdown.
In that context, Colgate’s 4% domestic volume growth during the quarter is only a slight deceleration compared to the 5% clocked in the preceding quarter. Management believes this trend is temporary and expects a pickup in the coming quarters. Colgate’s intrinsic operating profit for the quarter was a tad short of forecasts due to higher growth in employee costs which more than offsets the slower-than-expected ad-spends growth during the quarter.
Reported revenue growth was impacted by a rather steep 40-50% fall in exports revenue, which is expected to become more stable. Colgate will have a new MD (Ram Raghavan) at its helm from August 1 – any significant step-up in strategy and /or action-plans to deal with the ongoing consumption slowdown and competitive intensity would be critical for the stock performance. The brokerage firm maintains Hold for now for the stock.
HDFC Children’s Gift Fund: Proving its mettle over the long term
Children’s plans offered by mutual funds are hybrid funds investing in the mix of equity and debt assets. They have a lock-in of at least five years or till the child attains 18 (whichever is earlier).
These funds allow investment only in the name of a minor child — less than 18 years old — on the date of the investment. The applicant can be the parent, step-parent, grand-parent, adult relative or friend. Few AMCs allow trusts and corporate entities also to invest in the child’s name.
HDFC Children’s Gift is one of the best-performing funds in the category, investing 65-75 per cent in equity and rest in debt papers.
Earnings to Watch
Reliance Industries, InterGlobe Aviation, RBLBank, Dabur India, Dhanuka Agritech, Bandhan Bank, Bhageria Industries, Hindustan Zinc, ICICI Lombard General Insurance Company, JM Financial, L&T Finance Holdings, L&T Technology Services, Mahindra CIE Automotive, Phillips Carbon Black, Unitech
Cyient shares drop to near two-year low on weak results
Cyient Ltd falls as much as 11.4 per cent to Rs 481.55, the lowest since September 2017.
On Thursday, the engineering design services provider said the net profit for the June-quarter dropped 48.8 per cent to Rs 9,050 lakh quarter-on-quarter (QoQ).
Nifty Sectoral Indices
Nifty Sectoral Indices
ACC rises after strong quarter; cement stocks buoyant
Shares of ACC Ltd rise as much as 5.13 per cent to Rs 1,647.55, their highest since June 6.
The cement manufacturer posted a 38.6 per cent jump in quarterly profit, helped by strong growth in its ready mix concrete business.
Earnings recovery likely to be led by the banking sector: IIFL Securities CEO
Arindam Chanda, CEO, IIFL Securities, a veteran of two decades in the capital markets and who handles the high net worth broking business, Premia, shared his views on the recent Budget and its implications on the stock markets. Excerpts from the interview:
Nifty Bank index
Q1FY20 COMPANIES' RESULTS
* L&T Infotech (Consolidated, QoQ) Dollar revenue up 0.8% at $356.5 million. Revenue flat at INR 2485 crore. Net profit down 6.1% at INR 355.8 crore. EBIT down 9.7% at INR 396.9 crore. Margin narrows to 16%.
* ACC(Q2CY19 Standalone, YoY) Revenue up 7.8% at INR 4149.72 crore. Net profit up 38.6% at INR 451.3 crore. Ebitda up 25.3% at INR 781.68 crore. Margin widens to 18.8%. Sales volume at 7.2 mt. Ebitda at INR 1,100 per tonne.
* Sterlite Technologies (Consolidated, YoY) Revenue up 63.3% at INR 1432 crore. Net profit up 17.1% at INR 141.4 crore.Ebitda up 32% at INR 323.4 crore. Margin at 22.6%. Finance costs up 2 times at INR 68.3 crore. Raw material as % of sales at 49.4%.
* Hatsun Agro Product (Standalone, YoY) Revenue up 15.2% at INR 1423.2 crore. Net profit up 35.1% at INR 51.2 crore.Ebitda up 32.5% at INR 162.7 crore. Margin at 11.4%. Tax as % of PBT at 34.1%.
* Cyient (Consolidated, QoQ) Revenue down 6.4% at INR 1089 crore. Net profit down 49% at INR 90 crore. EBIT down 30% at INR 98.8 crore. Margin narrows to 9.1%.
* Rallis India (Consolidated, YoY) Revenue up 8.7% at INR 623.2 crore. Net profit up 23.9% at INR 67.8 crore. Ebitda up 14% at INR 94.8 crore. Margin widens to 15.2%.
* Sasken Technologies (Consolidated, QoQ) Revenue flat at INR 134.7 crore. Net profit down 15.6% at INR 23.2 crore. EBIT down 2.7% at INR 22 crore. Margin narrows 16.3%. Tax expenses up 72% at INR 10.3 crore.
Microsoft’s Q4 profit soars fuelled by cloud, business services
Microsoft Corp. topped quarterly sales and profit projections, fuelled by steady demand for cloud-computing services and a surprisingly strong Windows business. The company’s forecast promised robust growth will continue into next year.
The software maker pledged double-digit percentage gains in sales and operating income for the year that started July 1.
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Microsoft offers annual pay package of Rs 41 lakh annual package to five CBIT students
Broker's call: Wipro (Buy)
Elara Capital
Wipro (Buy)
CMP: ₹269.15
Target: ₹335
Wipro revenue at $2,038.8 million was down 0.7 per cent q-o-q and up 5.9 per cent y-o-y in constant currency (CC) terms adjusted for divestment of workday & cornerstone in some Europe countries and divestiture of the data centre business.
Related Stories
Azim Premji helps create India’s newest tech unicorn Icertis
India-based Icertis was co-led by Greycroft Partners LLC and Premji Invest, the fund managed by the family office of the tech billionaire
Corporate Buzz
* The NCLT has given a go-ahead to government to prosecute Deloitte and BSR Associates for their failure to detect and report the scams that took place across the now-bankrupt IL&FS group and 21 other entities, when they were the auditors of IL&FS Financial Services. The NCLT said the corporate affairs ministry can go ahead with prosecution based on the findings of the probe conducted by the Serious Fraud Investigation Office (SFIO).
* Thermax : Company bagged order worth INR 471 crore from Indian government power company for a project in Jharkhand.
* Tata Motors : Company incorporated wholly-owned unit Brabo Robotics & Automation w.e.f July 17.
* Oriental Bank of Commerce : CARE revised rating outlook of Tier I & Tier II bonds from negative to stable.
* Jet Airways : Insolvency Resolution Professional (IPR) published the list of creditors, claims filed for the airline; financial creditors claim INR 10,231 crore against airline but IRP admits INR 8,463 crore of financial creditors claims.
Inputs from Cholamandalam Securities
NIFTY BANK STOCKS
NIFTY BANK INDEX
RBI panel suggests extension of forex market trading hours
A RBI working group has suggested calibrated extension of forex market trading hours from 9 am to 9 pm as it would help in gauging demand and potential benefits.
Rupee rises 23 paise to 68.74 verus USD
The rupee appreciated by 23 paise to 68.74 against the United States (US) dollar in early trade on Friday, as market participants pinned their hopes on aggressive interest cut by the US Federal Reserve later this month.
Forex traders said rupee along with most Asian currencies were trading in the positive territory following dovish comments from both New York Fed President John Williams and Vice Chair Richard Clarida.
₹1261 • Sell Reliance Ind if stock fails to rally above ₹1,275 levels
DII INVESTMENTS
DII INVESTMENTS. Source: Dalmia Securities
FII INVESTMENTS
FII Investments. Source: Dalmia Securities
₹143 • ONGC : Sell ONGC with fixed stop-loss at ₹146 levels
Sensex, Nifty down 0.65%
Domestic equity benchmark BSE Sensex dropped over 250 points on Friday amid heavy foreign fund outflow and weak domestic headwinds.
The 30-share index opened higher by 150 points tracking rally global equities, but surrendered all gains to trade 261.04 points or 0.67 per cent lower at 38,636.42 at 10.30 hours. The index swung nearly 400 points in the first hour of the session.
Similarly, the broader Nifty was also quoting 75.30 points or 0.65 per cent down at 11,521.15.
Rallis India shares jump on results; see biggest gain in 18 months
Shares of Rallis India Ltd on Friday rose as much as 8.4% to Rs 165, their biggest intraday percentage gain since December 2017
At 10.10 am, the Rallis India stock was quoted at Rs 159.40, up 5.35% on the BSE, while on the NSE, it was trading at Rs 159.40, up over 5% with volumes of 11.38 lakh shares.
Agro inputs manufacturer on Thursday posted 24% jump in June-qtr profit at Rs 67.76 crore.
Related Stories
Rallis India: Sow seeds, reap rewards - Buy
The company’s plans to revive growth in the domestic market hold promise
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Rallis India: Rich harvest - Buy
Healthy demand for new products and contribution from contract manufacturing should drive revenues
Dollar under pressure after Federal Reserve fuels bets on large rate cut
The dollar was on the defensive on Friday after Federal Reserve officials bolstered expectations of an aggressive rate cut this month to address weakening price pressures.
At a central banking conference on Thursday, New York Fed President John Williams argued for pre-emptive measures to avoid having to deal with too low inflation and interest rates.
TOP LOSERS ON NSE
NSE TOP LOSERS
Indigo, Bandhan Bank, L&T Tech results eyed
Bandhan Bank, Bhageria Industries, Dabur India , Dhanuka Agritech , Hindustan Zinc, ICICI Lombard General Insurance, Indbank Merchant Banking, Interglobe Aviation , L&T Technology Services, L&T Finance Holdings, Mahindra CIE Automotive, JM Financials, Phillips Carbon Black, RBL Bank and Tokyo Plast International will declare their quarterly numbers for the period ended June 2019 on Friday. Focus will be on Interglobe, which is facing a management tussle.
Related Stories
IndiGo promoters skipped most board meetings, says IiAS report
Proxy advisory firm also finds fault with board compositionRelated Stories
IndiGo Airlines: Sell
The internecine war between the co-promoters is a major overhang on the company and the stock
Larsen & Toubro Infotech Ltd
Q1 earnings, macro data to drive equity markets this week
Quarterly earnings from frontline companies such as RIL, Wipro and HDFC Bank and macroeconomic data would be the major triggers for the domestic equity markets this week, say analysts.
Investors will also monitor trade-related developments, as well movement in the rupee and crude oil prices, they added.
The market is pricing in double-digit earnings growth over the next few years
9.35 am
VOLUME TOPPERS ON BSE
Sensex opens higher; Nifty up by 36 points
Key stock indices bounced up from yesterday's fall following value buying amidst some short covering by traders and retail investors. The market sentiment turned positive taking cues from stronger global markets.
The BSE Sensex openied firm at 39,058.73, before being quoted at 39,038.49, up by 141.03 points. It ended yesterday at 38,897.46
The NSE Nifty too rose 36.30 points, or 0.61 per cent, to 11,632.40.
Oil rises after US Navy destroys Iranian drone
Oil prices rose more than 1 per cent on Friday after the United States (US) Navy destroyed an Iranian drone in the Strait of Hormuz, a major chokepoint for global crude flows, again raising tensions in West Asia.
Brent crude futures were up 82 cents, or 1.3 per cent, at $62.75 by 0100 GMT. They closed down 2.7 per cent on Thursday, falling for a fourth day.
Asia stocks gain, dollar sags as Fed reinforces rate cut expectations
Wall Street shares shook off a sluggish start and moved higher overnight thanks to the dovish comments by Williams. Australian stocks added 0.4 per cent, South Korea's KOSPI rose 0.8 per cent and Japan's Nikkei advanced one per cent.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3 per cent, squaring the previous day's losses.
Day Trading Guide for July 19, 2019
Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:
₹2403 • HDFC Bank
₹793 • Infosys
Today's Pick: Sun Pharma Advanced Research Company (₹154.7): Buy
The stock of Sun Pharma Advanced Research Company has gained 8.8 per cent with above average volume on Thursday, breaching a key resistance at ₹149. It has been in limelight over the past four trading sessions. The recent rally gives traders with a short-term perspective an opportunity to buy the stock at current levels.
The stock of Sun Pharma Advanced Research Company has gained 8.8 per cent with above average volume on Thursday, breaching a key resistance at ₹149. It has been in limelight over the past four trading sessions. The recent rally gives traders with a short-term perspective an opportunity to buy the stock at current levels.
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