Markets end at fresh closing highs amid earnings optimism; Airtel, RIL gain
4:03 PMAnand James, Chief Market Strategist, Geojit Financial Services said: Market inched closer to the 10k level as the banking stocks registered a strong comeback today. Investors may expect buoyancy in the market to continue in the F&O expiry week, on the backdrop of short covering, especially in the banking sector. Monsoon updates, liveliness in rupee and the hopes on monsoon session of Parliament will drive the indices in the coming sessions.
3:43 PMNifty PSU Bank index
3:42 PM HDFC Bank gained 2% after the lender reported 20.22% rise in net profit to Rs 3,893.84 crore for the quarter ended on June 30, 2017, compared to the same period last year.
3:38 PM Nifty50 index less than 50 points away from hitting the crucial 10,000-mark
3:37 PM All except metals and pharma sectoral indices ended the day in green. Nifty PSU Bank was the top gainer, up 1.5% followed by Nifty IT (up 1%), Nifty FMCG (up 0.9%) and Nifty Bank (0.7%)
3:36 PM Bharti Airtel, Reliance Industries, HDFC Bank, Wipro and TCS gained the most on BSE Sensex while Dr Reddy’s, Axis Bank, Tata Steel and Sun Pharma lost the most on the index.
Benchmark indices settled the day at record closing highs as investors stay optimistic on Q1 earnings results, despite weakness in global markets.
The S&P BSE Sensex ended the day at a new milestone of 32,245, up 216 points, surpassing previous closing high of 32,074, hit on July 17. The broader Nifty50 index also settled the day at fresh closing high of 9,966, up 55 points, racing ahead of its previous high of 9,915, hit on July 17.
3:07 PM At 3:05 pm, the S&P BSE Sensex was trading at 32,229, up 200 points while the broader Nifty50 index was at 9,962, up 47 points.
In broader markets, both BS Midcap and BSE Smallcap indices underperformed the frontline indices, up 0.3% each.
Shares of public sector banks (PSBs) were in focus with the Nifty PSU Bank gaining over 2% on the National Stock Exchange (NSE).
2:20 PMTop gainers and losers on BSE Sensex
2:01 PMMarkets Check
At 2:00 pm, the Sensex was trading at 32,251, up 223 points, while the broader Nifty50 was ruling at 9,970, up 55 points.
1:41 PM In the broader market, the BSE Midcap and the BSE Smallcap indices added 0.3% and 0.6%, respectively.
1:24 PM Amtek Auto hit its upper circuit of nearly 5% at Rs 31 after the troubled auto component firm said its arm Amtek Global Technologies would sell its UK-based subsidiaries’ plants to the Liberty group. CLICK HERE FOR THE FULL REPORT
At 1:00 pm, the Sensex was trading at 32,226, up 197, while the Nifty50 was ruling at 9,962, up 47 points.
12:46 PMHDFC Bank at day’s high post Q1 results, gains 2%
12:31 PMQ1 earnings
HDFC Bank set aside Rs 1,559 crore in provisions, compared with Rs 1,261.80 crore reported in the March quarter. The private sector lender’s net interest income (NII) came in at Rs 9,370 crore, up 15% year-on-year.
12:24 PMQ1 earnings
HDFC Bank was trading flat at Rs 1,698 after the company reported 20.22% rise in net profit at Rs 38,94 crore for the June quarter against Rs 32,39 crore reported in the same quarter of previous year.
11:43 AM ITC rebounded to add over 2% to Rs 295 on the BSE after the company hiked the prices of select cigarette brands following the GST Council’s move to hike the cess on cigarette firms.
11:28 AM Gold prices touched their highest in four weeks on Monday, supported by political uncertainty in the United States that pushed the dollar to its lowest in over a year. Spot gold was nearly flat at $1,254.31 per ounce. It earlier hit a 4-week high of $1,257.18 an ounce, having risen 2.1% last week. US gold futures for August delivery were also nearly unchanged at $1,254.70 per ounce.
The dollar struggled near a 13-month low against a basket of major currencies ahead of the Fed policy meeting later in the week as US political woes dampened hopes for quick passage of president Donald Trump’s stimulus and tax reform agendas. After touching 93.823, its lowest level since June 2016 early on Monday, it edged up to 93.908, marginally above Friday’s close.
11:01 AM At 11:00 am, the Sensex was trading at 32,218, up 189 points, while the Nifty50 was ruling at 9,967, up 51 points.
10:57 AMRIL hits fresh 52-week high; top gainer on Sensex, Nifty
10:40 AMMarkets extend gains
Nifty nears its key psychological 10,000 mark, while Sensex trades above 32,200
10:22 AM Overseas investors have pumped in $2.4 billion in the capital markets this month, enthused by trouble-free roll-out of GST and on hopes of better corporate earnings, taking the total to $25 billion so far this year. CLICK HERE FOR DETAILS
10:12 AM The International Monetary Fund (IMF) has retained India’s economic growth projections at 7.2 per cent in 2017-18, up slightly from 7.1 per cent in the previous year. However, the growth would accelerate to 7.7 per cent in 2018-19, IMF said while also maintaining the growth rate level projected in April. CLICK HERE FOR FULL REPORT
10:05 AMMarkets at new highs
In intraday trade, the Sensex gained as much as 156 points to touch its fresh high of 32,185 level, while the Nifty added 37 points to hit its new high of 9,953 mark.
10:01 AM Lupin bucked weakness in the Nifty Pharma index to gain nearly 3% to Rs 1,175 on the NSE after the company announced the successful completion of an inspection carried out by the US regulator at its Goa manufacturing facility.
9:51 AM Divi’s Labs shed over 4% after the drug firm reported 41.50% dip in standalone net profit at Rs 176.54 crore for the first quarter ended June 30, impacted by USFDA alert for a unit at its Visakhapatnam facility. The company had posted a net profit of Rs 301.81 crore for the corresponding period of previous fiscal.
9:50 AM ITC hikes cigarette prices effective July 18: TV reports
9:39 AMSensex touches fresh high of 32,140, surpassing previous high of 32,131 hit on July 17.
9:34 AMNifty Bank hits fresh high; 10 out of 12 constituents were trading in green (Source: NSE)
9:31 AMNifty PSU Bank (up 0.7%) was the leading sectoral gainer (Source: NSE)
9:28 AMTop Sensex gainers and losers (Source: BSE)
Nifty outlook by by Anand James of Geojit Financial Services
Successive triangular patterns supports the 10,300 view, but with oscillators tightly wound, volatility or a minor pull back may be expected, which should render the uptrend healthier. Direct fall below 9,824 could significantly puncture upside potential, and instead draw up the possibilities of 9,400 levels, but favoured view expects downsides to be limited to 9,700 vicinity in a worst-case scenario.
9:23 AM At 9:20 am, the Sensex was trading at 32,081, up 52 points, while the Nifty50 was ruling at 9,924, up 9 points.
9:18 AM The Nifty index opens at fresh record high of 9,939. Last time, it hit its lifetime high of 9,928 on July 17.
9:16 AMOil update
Oil prices gained on Monday after a steep fall the session before, buoyed by expectations that a joint OPEC and non-OPEC meeting later in the day may address rising output in Nigeria and Libya, two OPEC members so far exempt from a push to cut production. London Brent crude for September delivery was up 24 cents at $48.30 a barrel.
9:13 AM Shareholders might have cheered the bonus issue announcement by Reliance Industries (RIL) at its annual general meeting (AGM), however, it may not alter the oil-to-telecom conglomerate’s fortunes by much looking at the past. Previous two bonuses— in 1997 and 2009 — by the country’s most valuable company, have failed to fuel any rally in its stock price READ MORE HERE
9:11 AM Nifty outlook and top stock picks by Devang Shah for today’s trade CLICK HERE FOR MORE
9:11 AMEarnings analysis
The corporate results season for the April-June 2017 quarter has started on an encouraging note, thanks to a better-than-expected performance by industry heavyweights such as Reliance Industries (RIL) and Hindustan Zinc. CLICK HERE FOR THE FULL REPORT
9:10 AM Buy Apolllo Hospitals, Emami, says Vaishali Parekh of Prabhudas Lilladher CLICK HERE FOR MORE
Market outlook for the day
Today the markets are likely to open on flat note. All emerging markets are trading mixed. The coming session is likely to witness a range of 9800 on declines and 9980 on advances on the Nifty: SMC Global
9:08 AM In pre-open trade, the Sensex was trading at 32,090, up 61 points, while the Nifty50 was ruling at 9,933, up 18 points.
HDFC Bank, Ambuja Cements, Zee Entertainment, HUDCO, Indiabulls Realty and Tata Communications are among 37 companies scheduled to report their quarterly numbers during the day.
Arihant Capital Markets on Bajaj Auto
With good monsoon, low Inflation and lower interest rates management is expecting a good growth and improvement in margin as well as revenue levels. We forecast Bajaj’s domestic and export volumes to recover from Q2 FY18. We have valued the stock at PE of 20(X) to its FY19E EPS of Rs 141 and arrived at fair value of Rs 2820. We have “NEUTRAL” Rating on the stock
9:00 AM We expect markets to consolidate gains in Sept quarter, says Manulife Asset Management in this exclusive interview. READ IT HERE
IMF kept its growth forecasts for the world economy unchanged for this year and next, although it slightly revised up growth expectations for the eurozone and China. The global gross domestic product would be 3.5% in 2017 and 3.6% in 2018, it said.
The day ahead will see major index companies including Ambuja Cements, Bharti Infratel, HDFC Bank, Indiabulls Housing Finance, Zee Entertainment reporting their first quarter earnings.
Companies including Delta Corp, GIC housing Finance, Hudco, I G Petrochemicals, Indiabulls Real Estate, IRB Infrastructure Developers, Just Dial, L&T Infotech, M&M Financial, Zee Learn, Excel Crop Care, Flexituff International, Gulf Oil, Info Edge, JM Financial, Navkar Corp, NELCO, Patel Engineering, Petron Engineering Construction, Swaraj Engines, Tata Communications, Texmaco Infrastructure, Texmaco Rail, Vinyl Chemicals, Wendt India among others announce their results and stock specific action could be seen in these counters.
8:58 AM The International Monetary Fund (IMF) in its updated World Economic Outlook says it sees India’s growth at 7.2% in 2017.
IIFL on Sterlite Technologies
We had recommended a BUY on Sterlite Technologies Ltd in our Q1 FY18 result update dated July 20, 2017 for a price target of Rs.202. The target was achieved in Friday’s trading session with the stock delivering 17% return since last result update. The stock has been a stellar performer with the share price multiplying by >3.5x from our initiating coverage report released during March 2016.
We continue to remain bullish on the company’s growth prospects on account of robust industry outlook, its market leadership position, and ongoing capacity expansion in optic fiber segment. Rising share of services segment and addition of smart city projects would further support growth. However with the sharp run-up in price, the stock is now trading at premium valuations. We downgrade the stock to Accumulate with a revised target of Rs.234
IIFL on RIL
Reliance Industries (RIL) reported an exemplary operational performance in Q1 FY18 in both of its core segments of refining and petrochemicals. GRMs at US$11.9/bbl was highest since Q2 FY09 and petrochemical segment EBIT margins of 16.5% was highest since Q2 FY10. With a backdrop of such strong performance along with scale up of new projects in the core businesses and tremendous value creation potential of its telecom business, we maintain our BUY rating with an upward revision in estimates and target. The announcement of 1:1 bonus issue will incrementally add to shareholder value
8:55 AMWeekly roundup
Nifty was up 1.5% for the week, snapping a three-week losing streak, its biggest weekly gain since late May. On the other hand, BSE Sensex was up 1.4% for the week, extending gains for the second consecutive week
Wall Street update
US stocks ticked lower on Friday as weak earnings from industrial giant General Electric weighed, while tech shares retreated from record highs and energy tracked the price of oil lower. The Dow Jones Industrial Average fell 31.71 points, or 0.15% to 21,580.07, the S&P 500 lost 0.91 points, or 0.04% to 2,472.54 and the Nasdaq Composite dropped 2.25 points, or 0.04% to 6,387.75.
8:52 AMAsian markets
Asian stocks slipped on Monday as demand for riskier assets ebbed after recent strong gains. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.1%, Japan’s Nikkei dropped 0.8%on a stronger yen. Australian shares retreated 0.2% and South Korea’s KOSPI was flat. China’s Shanghai Composite and Hong Kong’s Hang Seng were trading higher and added 0.2% and 0.4%, respectively.
8:44 AM At 8:40 am, SGX Nifty was trading at 9,931, up 19 points or 0.19%. Traded in Singapore, the SGX Nifty is an early indicator of movement of Indian Nifty index.