Sensex ends 266 higher led by metal, auto and financial stocks

Closing bell

Equity benchmark BSE Sensex rose 266 points, led by metal, auto and financial stocks amid positive global market sentiment after US Federal Reserve Chairman Jerome Powell hinted at a rate cut later this month.

After rising as much as 335 points during the day, the 30-share index settled 266.07 points or 0.69 per cent higher at 38,823.11. The index hit an intra-day high of 38,892.50 and a low of 38,631.31.

Similarly, the broader NSE Nifty ended 84 points, or 0.73 per cent, higher at 11,582.90. During the day, it touched a high of 11,599 and a low of 11,519.50.

Hero MotoCorp was the top gainer in the Sensex pack, spurting 4.46 per cent. IndusInd Bank, Tata Motors, Vedanta, SBI, M&M, Sun Pharma, Tata Steel and HDFC twins too rose up to 3.63 per cent. On the other hand, Tech Mahindra, Yes Bank, TCS, L&T, Axis Bank and NTPC fell up to 1.27 per cent.

“Indian markets opened positively for the first time post budget, taking cues from Asian markets which ended with handsome gains after US Fed signalled at interest rate cut soon in the face of some weakening economic data,” said Narendra Solanki, Head Fundamental Research (Investment Services) - AVP Equity Research, Anand Rathi Shares & Stock Brokers.

In his congressional testimony on Wednesday, Powell confirmed that the US economy was still under threat of a slowdown, and that the Fed was ready to “act as appropriate” to boost growth.

Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Nikkei and Kospi ended in the green. Equities in Europe were also trading higher in early deals.

On the currency front, the Indian rupee appreciated 14 paise to 68.43 against the US dollar (intra-day). The global oil benchmark Brent crude futures rose 0.61 per cent to USD 67.42 per barrel. - PTI

Bitcoin extends loss

Bitcoin climbed nearly 55% in nine days after Facebook unveiled its plans for Libra on June 18. File Photo

Bitcoin dipped almost 8 per cent, extending losses the day after US Federal Reserve Chairman Jerome Powell called for a halt to Facebook's Libra cryptocurrency project until concerns ranging from privacy to money-laundering were addressed. The original cryptocurrency initially fell 7.7 per cent to $11,164 in early morning trade. The biggest coin climbed nearly 55 per cent in nine days after Facebook unveiled its plans for Libra on June 18, touching an 18-month high of nearly $14,000. Click here to read more on the Bitcoin value and Facebook Libra's impact on the cryptocurrency

Vedanta's capital expenditure

File Photo of Navin Agarwal, Chairman, Vedanta Limited.

Stating that its growth plans will see it becoming the world’s largest zinc producer and among the top three silver producers, mining giant Vedanta Ltd on Thursday said it spent around ₹10,000 crore in FY’19 on capital expenditure programmes. Vedanta's chairman Navin Agarwal said Vedanta’s plans include a total capital investment of ₹55,000 crore to increase production by about 50 per cent across its businesses which the company expects to fund from internal cash flows. Read more on Vedanta's capex in FY19 here

The stocks of Vedanta were trading 2.50 per cent higher at Rs 164.

European stock markets

The pan-European stocks benchmark rose 0.2 per cent. File Photo

European shares were set to snap four days of losses on Thursday, after US Federal Reserve Chair Jerome Powell's dovish comments cemented hopes of an interest rate cut this month, even as trade frictions between France and the United States rose. The pan-European stocks benchmark rose 0.3 per cent on broad-based gains after accumulating losses of 1.4 per cent over the last four sessions. More on the European stock markets, read here

Religare shares hit upper circuit

Shares of Religare Enterprises on Thursday surged nearly 10 per cent to hit the upper circuit limit a day after the company announced divestment of stake in its subsidiary to TCG Advisory Services. On BSE, the shares hit the upper circuit limit of ₹42.95, surging 9.99 per cent over its previous close of ₹39.05. Similarly, on NSE, the scrip rose 9.96 per cent to ₹43.05.

Glenmark, Torrent Pharma ink licensing pact

Glenmark, Torrent Pharma sign pact

Glenmark Pharmaceuticals and Torrent Pharmaceuticals on Thursday said they have entered into a licensing agreement to co-market diabetes drug Remogliflozin Etabonate in India.

“Under the terms of the agreement, Glenmark will receive an upfront payment, license fees and royalties for the non-exclusive sub-license rights from Torrent. The company, however, did not disclose financial details of the licensing agreement. Read more on the pact signed by Glenmark and Torrent Pharma here

The stocks of Glenmark Pharma were trading 1.59 per cent higher at Rs 452.60 while the Torrent Pharma stocks were trading at Rs 1,552.70, higher by 0.19 per cent.

Bank and financial stocks lend support

The 30-share BSE index Sensex surged 315.75 points or 0.81 per cent to 38,870.79 led by bank and financial stocks and HDFC twins.

The top gainers were IndusInd Bank, Hero MotoCorp, Tata Motors, SBI and Vedanta while the major losers were Tech Mahindra, Yes Bank, ICICI Bank and TCS.

Similarly, the broader index Nifty zoomed 0.84 per cent or 96.45 points to 11,595.35. The top stocks leading the gainers pack were Zee Entertainment, IndusInd Bank, JSW Steel, Hero MotoCorp and Tata Motors while the laggards were Tech Mahindra, Yes Bank, ICICI Bank, IOC and TCS.

Broker's call

Equirus Securities

MSTC (Long)

CMP: ₹98.7

Target: ₹168

MSTC  (formerly Metal and Scrap Trading Corporation) is a government-owned Mini Ratna Category-I PSU and one of the leading B2B e-commerce company in India. Incorporated in 1964 as a trading company to deal in the export of scrap, it has grown into a large diversified, multi-product services and trading company. Initiate coverage with ‘long’ rating and target price of ₹168, set at 8x June 2020 trailing twelve months EPS of ₹21. Read our Broker's call on MSTC here

Nifty Call

The market breadth of the Nifty index is biased towards advances. On the other hand, India VIX has slumped 6.5 per cent to 12.7 levels. The Nifty mid-cap index has advanced 0.5 per cent while Nifty small cap index is hovering flat. Buying interest is seen in Nifty media and realty indices which have advanced 2 per cent and 1.5 per cent respectively. The Nifty IT index marginally trades in red. Read our Nifty Call for July futures here

Reliance asset sales

File Photo of Reliance Communication chairman Anil Ambani.

Indian tycoon Anil Ambani plans to raise about ₹21,700 crore ($3.2 billion) by selling assets from roads to radio stations in a bid to cut debt. Anil Ambani, on June 11, said that his Reliance Group repaid ₹35,000 crore in the past 14 months through asset disposals. But a large pile remains. The four biggest group companies still have about ₹93,900 crore of debt. Read more on the asset sales by Anil Ambani-led Reliance Group here

The stocks of Reliance Infrastructure were trading 2.72 per cent higher at Rs 47.25 and the scrips of Reliance Capital were 0.98 per cent higher at Rs 56.50.

Sensex, Nifty trade higher

The 30-share BSE index Sensex jumped 239.89 points or 0.32 per cent to 38,796.93 led by the stocks of HDFC twins and industry heavyweights ITC and Reliance.

The top gainers were IndusInd Bank, Hero MotoCorp, Tata Motors, Vedanta and Mahindra & Mahindra while the stocks leading the negative pack were Yes Bank, Tech Mahindra, ICICI Bank, L&T, and TCS.

Sectorally, the stocks of realty and metals emerged major gainers trading over 1 per cent.

The broader index Nifty was trading 73.64 points or 0.68 per cent higher at 11,576.60. The top gainers leading the positive pack were JSW Steel, Zee Entertainment, IndusInd Bank, Hero MotoCorp and IBUL Housing Finance while the laggards were Yes Bank, Tech Mahindra, ICICI Bank, IOC and Titan

L&T bags orders

Infrastructure company Larsen & Toubro (L&T) said it has received ‘significant’ orders across various business segments in the domestic and international market. The company did not provide the value of the contracts, but said the orders fall under the “significant” category, which ranges between Rs 1,000 crore and Rs 2,500 crore according to the classification of contracts. Read more on the significant orders bagged by L&T here

The stocks of L&T were trading 0.29 per cent lower at Rs 1,494.80.

Gold and precious metals

SPDR Gold holdings rose 0.8 per cent on Wednesday.

Gold prices scaled a more than one-week peak on Thursday, as the dollar slipped after dovish remarks from the US Federal Reserve Chairman Jerome Powell boosted the case for an interest rate cut later this month.

Spot gold was up 0.3 per cent at $1,422.43 per ounce as of 0548 GMT, after earlier hitting its highest since July 3 at $1,426. US gold futures jumped 0.8 per cent to $1,424. Indicative of sentiment, holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.8 per cent on Wednesday. Click here to read more on the gold and other precious metals prices

Auto stocks

The auto stocks in the BSE index were trading 63.42 points or 0.37 per cent higher at 17,011. On Wednesday, the shares of auto stocks fell up to 3 per cent after SIAM data on domestic auto sales.

The SIAM data showed that domestic passenger vehicle (PV) sales declined for the eighth consecutive month in June. Continuing the unprecedented slump in automobile sector, domestic PV sales declined for the eighth consecutive month in June, prompting the industry to seek concrete policy steps from the government to arrest de-growth and check job losses.

According to the data released by the SIAM, all vehicle categories witnessed decline in sales last month. Vehicle sales across categories registered a decline of 12.34 per cent to 19,97,952 units from 22,79,186 units in June 2018, it added. In fact, all vehicle categories witnessed decline in sales during the month. Read more on the decline of auto sales here

Forex market trading hours

The Foreign Exchange Dealers’ Association of India has stipulated market timings for inter-bank USD/INR forex transactions from 9 am to 5 pm.

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. The Reserve Bank of India (RBI), in August 2018, had decided to set up an internal group to comprehensively review the timings of various markets it regulates and the associated payment and settlement infrastructure.

The draft report of the working group said that since RBI is in the process of reviewing and rationalising foreign exchange regulations to provide flexibility in terms of choice of products, participation, positions, extension of market hours would complement these policy measures.  Read more on the RBI working group's recommendation on forex market trading hours

Sensex leaps 204 points

The 30-share BSE index Sensex surged 204.87 points or 0.53 per cent to 38,761.91 led by HDFC twins.

The major gainers in the Sensex pack lending support to the index were IndusInd Bank, Hero MotoCorp, SBI, Bajaj Finance and ITC while the laggards were Yes Bank, Tech Mahindra, ICICI Bank, Axis Bank and L&T.

Among the sectoral indices, realty stocks emerged the top gainers while the capital goods stock index were leading the negative zone.

The 50-share NSE index Nifty was trading 0.53 per cent or 60.50 points higher at 11,559.40. The stocks leading the gainers pack were Zee Entertainment, Dr Reddy's, JSW Steel, IndusInd Bank, IBUL Housing Finance while the scrips trading in red were Yes Bank, Tech Mahindra, IOC, ICICI Bank and Axis Bank.

Broker's call

Elara Capital

TCS (Accumulate)

CMP: ₹2,107.7

Target: ₹2,320

Tata Consultancy Services

TCS revenue growth at 10.6 per cent y-o-y in constant currency (CC) terms was lower than our estimates of 11.0 per cent y-o-y. However, we are enthused BFSI continued to accelerate at 9.2 per cent y-o-y in CC terms in Q1FY20 despite management comments on headwinds in sub-segments, such as Europe banks and US markets. Read our Broker's Call on TCS here

Listing of Seya Industries

Seya Industries  has announced that its equity shares of face value ₹10 each will be admitted to trade on the National Stock Exchange of India from July 11. The company has successfully fulfilled all the criteria laid down by the NSE for the listing.

The BSE-listed company that is engaged in manufacturing and exporting of pigments, pharmaceuticals, agrochemicals and rubber chemical intermediates, had reported a profit of ₹88.49 crore and revenues of ₹412.78 crore for FY18-19. Shares of Seya Industries closed at ₹457.95, up 1 per cent.

The stocks of Seya Industries were trading 1.10 per cent higher at Rs 463 in the BSE index.

Commodities market

Oil futures hit a six-week high as a storm built in the Gulf of Mexico, threatening crude output, while an incident with a British tanker in the Middle East highlighted ongoing tensions in the region.

US West Texas Intermediate (WTI) crude futures were up 34 cents, or 0.6%, at $60.77 a barrel by 0337 GMT, after earlier touching the highest since May 23 at $60.83. They gained 4.5% in the previous session. More on the commodities market report, read here

Shares recover some lost ground

The shares rose, driven by gains in metals and financials, and tracking strength in broader Asia as dovish comments by US Federal Reserve Chairman Jerome Powell rekindled rate-cut hopes.

Buying was broad-based, with 42 of the 50 stocks in the broader NSE index trading in the green, while only 7 stocks in the benchmark BSE index traded in the negative territory. “The markets are driven by the Fed projecting that they are going to cut rates, so global liquidity finds its way into emerging markets,” said Sunil Sharma, chief investment officer, Sanctum Wealth Management.

The NSE index was 0.45 per cent or 52.30 points higher at 11,551.20, while the BSE index was up 0.38 per cent or 146.78 points at 38,703.82.

The shares took a beating after the Union budget on Juy 5 as investors were disappointed over some of the budget proposals, including the mandatory public float requirement and a higher surcharge on the rich.

Asian shares rose with MSCI's broadest index of Asia-Pacific shares outside Japan ticking up 0.8 per cent after Powell reinforced prospects of a US interest rate cut later this month. The Indian rupee strengthened to 68.310 per dollar from its 68.57 close on Wednesday.

The metal index climbed as much as 2 per cent as the dollar eased on Powell's comments.

Tata Steel Ltd, JSW Steel Ltd and State Bank of India Ltd were among the top gainers. JSW Steel gained as much as 3.12 per cent, while Tata Steel rose up to 2.3 per cent.

The Nifty PSU bank index, which tracks state-owned lenders, advanced as much as 1 per cent. Ten of the 12 stocks in the index were trading higher. Meanwhile, the Nifty IT index fell 0.45 per cent, with Infosys Ltd shedding as much as 0.9 per cent ahead of its first-quarter results on Friday.

InterGlobe Aviation Ltd extended falls to decline as much as 5.83 per cent, after one of the co-founders of India's largest airline IndiGo alleged violation of corporate governance rules at the parent group. - Reuters

US stock markets

S&P 500 briefly crosses 3,000 threshold. File Photo

US stocks ended higher and the S&P 500 index briefly crossed the 3,000-point mark for the first time on Wednesday as remarks by Federal Reserve Chairman Jerome Powell reassured investors about the potential for an interest rate cut later this month.

The Dow also hit an intraday record and the Nasdaq closed at an all-time high following the release of prepared remarks for Powell's testimony before the US House of Representatives Financial Services Committee. Click here to read the US stock markets report

Rupee market

At the interbank foreign exchange market, the domestic unit opened on a firm footing at 68.31.

The rupee rebounded 25 paise to 68.33 against the US dollar in early trade, in tandem with other emerging market currencies after Federal Reserve chief Jerome Powell bolstered expectations of a rate cut later this month. At the interbank foreign exchange market, the domestic unit opened on a firm footing at 68.31, but soon pared some gains to trade at 68.33, up 25 paise over its previous close. More on the local currency market, read here

Bank, metal stocks soar

Domestic equity benchmark BSE Sensex jumped over 200 points in early trade tracking strong cues from global markets after US Federal Reserve Chairman Jerome Powell hinted at a rate cut soon.

The 30-share index, however, gave up some gains to trade 148.91 points, or 0.39 per cent, higher at 38,705.95. Similarly, the broader Nifty rose 47.50 points, or 0.41 per cent, to 11,546.40.

Top gainers in the Sensex pack included Vedanta, Tata Steel, SBI, Tata Motors, ONGC, PowerGrid, Yes Bank, Sun Pharma and M&M, rising up to 2 per cent. On the other hand, Bajaj Finance, TechM, Asian Paints, Infosys, ICICI Bank, Hero MotoCorp, Bajaj Auto, Kotak Bank and TCS fell up to 1.50 per cent.

In the previous session, the 30-share gauge settled 173.78 points or 0.45 per cent lower at 38,557.04; and the Nifty ended 57 points, or 0.49 per cent, lower at 11,498.90.

On a net basis, foreign institutional investors sold equities worth Rs 604.94 crore, while domestic institutional investors purchased shares to the tune of Rs 667.40 crore, provisional data available with stock exchanges showed Wednesday.

Domestic equities rebounded amid positive cues from Asian and US equities that got a boost after US Fed chair’s congressional testimony. According to reports, Powell reignited hopes of a US interest rate cut later this month.

In his testimony on Wednesday, Powell confirmed that the US economy was still under threat of a slowdown, and that the Fed was ready to act as appropriate”, reports said.

Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Nikkei and Kospi were trading significantly higher in their respective early sessions. Meanwhile, bourses on Wall Street too ended higher after hitting record intra-day highs on Wednesday.

Meanwhile, the Indian rupee appreciated 26 paise to 68.31 against the US dollar. The global oil benchmark Brent crude futures were trading 0.39 per cent higher at 67.27 per barrel. - PTI

Forex market

The dollar was soft after Federal Reserve Chairman Jerome Powell set the stage for a rate cut later this month, vowing to “act as appropriate” to ensure the world's biggest economy will be able to sustain a decade-long expansion. The euro traded at $1.1260, little changed in early Asia after having gained 0.38% the previous day. The dollar's index against six major currencies slipped about 0.4% on Wednesday, turning negative on the week, to 97.104. Click here to read the forex market report

Sensex jumps 130 points

The 30-share BSE index Sensex jumped 130.37 points or 0.34 per cent to 38,687.41 led by Reliance and HDFC twins.

The top gainers were Vedanta, Tata Steel, Tata Motors, ONGC and NTPC while the laggards were Tech Mahindra, ICICI Bank, TCS, Infosys, and Bajaj Auto. Among the secotral indices, telecom and metal stocks emerged major gainers.

The broader index Nifty rose 40.45 points or 0.35 per cent to 11,539.35. The top stocks lending support to the index were Vedanta, Yes Bank, JSW Steel, IBUL Housing Finance and Tata Steel while the stocks trading in red were IOC, Infratel, BPCL, Asian Paints and Tech Mahindra.

Asian markets

Asian stocks gained and the dollar drooped after Federal Reserve Chair Jerome Powell reinforced prospects of a US interest rate cut later this month. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.8 per cent, while Japan's Nikkei added 0.4 per cent. The Shanghai Composite Index advanced 0.8 per cent, South Korea's KOSPI climbed 1 per cent and Australian stocks edged up 0.3 per cent. Read the Asian markets report here

Stocks in focus

Shares of Greenply Industries will remain in focus, as it fixed July 12 as the ex-date for the proposed demerger. Shareholders of Greenply Industries will get one share of Greenpanel, the demerged entity. The demerger is mainly for enhancing strategic flexibility to build a viable platform solely focusing on each of the businesses, Greenply said. Greenpanel will be listed on the BSE and the NSE. To receive Greenpanel shares, investors need to own Greenply by Thursday.

The respective boards of CCL Products (India) and Den Networks will meet on Thursday to consider the financial results for the first quarter ended June on Thursday. CCL Products had reported a net profit of ₹24.13 crore for the quarter ended June 2018 and total revenues of ₹218.69 crore; Den Networks had posted a loss of ₹21.92 crore on revenues of ₹281.87 crore. Shareholders and investors will closely monitor the performance of these companies.

Opening bell

The 30-share BSE index Sensex opened 194.58 points higher at 38,751.62 against the previous close of 38,557.04. The 50-share NSE index Nifty opened higher by 53.05 points at 11,551.95 against the previous close of 11,498.90.

Day Trading Guide

₹2379 • HDFC Bank

₹715 • Infosys

₹273 • ITC

₹153 • ONGC

₹1279 • Reliance Ind.

₹359 • SBI

₹2131 • TCS

11552 • Nifty 50 Futures

S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.

Today's Pick

We recommend a sell in the stock of JSW Steel at the current levels of Rs 254.9. The stock has been in an intermediate-term downtrend since registering a new high at ₹427 in September 2018. Medium as well as short-term trends are also down for the stock. On Wednesday, the stock fell by almost 3 per cent with above average volume breaching a key support at ₹260. The short-term outlook is bearish for the stock. Read our stock recommendation and stock activity of JSW Steel here