MARKET WRAP: Sensex ends 356 pts lower on RBI rate hike, trade war fears

Among sectoral indices, the Nifty Auto index settled nearly 1.5% down due to a fall in share prices Motherson Sumi Systems and Maruti Suzuki.

4:32 PM

MARKET COMMENT Jayant Manglik, President, Religare Broking

Markets started on weak note and lost nearly a percent in the end, taking breather after the recent surge. Participants were in the profit taking mood from the beginning, citing weak global markets and overhang of the rate hike further deteriorated the sentiment. Almost all the sectoral indices, barring Pharma, closed lower while broader market indices managed to end on flat note.

 

We reiterate our "buy on dips" approach in Nifty till 11,100 is intact. Stocks are witnessing volatile swings across the board, thanks to the ongoing earnings season and require extra caution during selection. Private banking counters still top our preferred list along with select stocks from auto, pharma, FMCG space for short term trades. We advise keeping close watch on earnings and cues from the world markets for further clarity

3:47 PM

Stock quote: Maruti Suzuki ends 2.27% lower on NSE

3:45 PM

Nifty Auto index ends 1.44% lower. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
MOTHERSON SUMI	304.10	314.60	-10.50	-3.34
MARUTI SUZUKI	9130.05	9341.60	-211.55	-2.26
APOLLO TYRES	285.20	291.60	-6.40	-2.19
M & M	910.95	929.75	-18.80	-2.02
TATA MOTORS	260.25	265.05	-4.80	-1.81

3:42 PM

Nifty sectoral losers of the day

3:40 PM

BSE Sensex: Bharti Airtel, Maruti Suzuki among top losers of the day, Power Grid Corp top gainer

3:37 PM

Markets at close

The S&P BSE Sensex ended at 37,165, down 356 points while the broader Nifty50 index settled at 11,245, down 101 points.

3:16 PM

HDFC trades lower for fourth straight day

Shares of Housing Development Finance Corporation (HDFC) was trading lower for the fourth straight trading day, down 2% at Rs 1,933 per share on the BSE. READ MORE

3:03 PM

Gold prices edge higher as dollar eases against yen

Gold prices rose on Thursday, recovering from the previous session's fall, supported by a weaker dollar versus the Japanese yen in Asian trade. Spot gold was up 0.2 per cent at $1,218.23 an ounce, after losing 0.65 per cent in the previous session. US gold futures were little changed at $1,226.70 an ounce. READ MORE

gold

2:49 PM

Sebi wins Australia court case against group accused of financial fraud

Market regulator Securities and Exchange Board of India (Sebi) has won a case against the PACL group in an Australian court. According to sources, the regulator had appealed in Federal Court of Australia to recover dues worth Rs 4 billion stashed away by the PACL Group using several shell entities. READ MORE

2:30 PM

Top losers in BSE 500:

COMPANY	PRICE( )	CHG( )	CHG(%)
L&T TECHNOLOGY	1420.00	-63.90	-4.31
ORIENT CEMENT	115.50	-5.15	-4.27
RADICO KHAITAN	430.05	-16.00	-3.59
SONATA SOFTWARE	342.00	-12.65	-3.57
L & T INFOTECH	1749.55	-63.15	-3.48

2:16 PM

Pharma shares in focus; Nifty Pharma index hits 6-month high

Shares of pharmaceutical companies were in focus with Nifty Pharma index rising nearly 2% to hit a six-month high on Thursday in otherwise weak market. READ MORE

2:00 PM

Market Check

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	37281.59	37521.62	-240.03	-0.64
	15265.88	15312.72	-46.84	-0.31
	16104.51	16043.12	61.39	0.38
	16669.00	16628.06	40.94	0.25
	4381.32	4403.28	-21.96	-0.50

1:44 PM

After RBI policy, what debt investors should bear in mind for portfolios

The Monetary Policy Committee (MPC) of the Reserve Bank of India decided to raise the repo rate by 25 basis points to 6.5 per cent. After two consecutive rate hikes, it is expected that the MPC will pause in October. However, most experts expect the current trend of rising interest rates to continue for at least the next 12-18 months.

 

Debt fund investors should bear this point in mind when building their portfolios. Investors should steer clear of longer-duration funds and stick to shorter-duration funds. READ MORE

1:34 PM

Devangshu Datta What next for telecom investors

The telecom price war triggered by the launch of Jio has forced drastic consolidation. In effect, three service providers are left. There's a trend of lower ARPU (average revenue per user). Two of the three are suffering falling revenues. All three may be cash-flow negative.

 

Each must be prepared to spend more. Reliance Jio Infocomm (RJIL), a subsidiary of Reliance Industries (RIL), declared a net profit of Rs 6.12 billion in April-June 2018. Numbers are hard to decode. RJIL has an unusually low rate of depreciation. READ MORE

1:22 PM

Reliance Securities on Tata Motors

 

We believe that the near-term challenges in terms of profitability and cash flow for JLR to persist, while the Management’s thrust on key six verticals with more emphasis on cash flow and prudent use of fund for capex would result in balance sheet improvement in FY20E. 

 

We maintain our “BUY” recommendation on the stock with a revised SOTP- based Target Price of to Rs325 (from Rs 375 earlier), valuing standalone business at Rs 140, JLR at Rs322 and other subsidiaries at Rs55, based on FY20E EBITDA, post excluding net debt of Rs 192/share.

1:21 PM

Reliance Securities on CEAT

 

We foresee CEAT’s operating performance to improve further in ensuing quarters with the likely improvement in volume and product-mix. Company’s new products like Milaze X3 and Puncture safe tyre has received good response and would help gaining market share to the company. Its improving brand image and network expansion would help on volumes front.

 

Further, gradual ramp-up in Ambernath plant’s utilisation is expected to aid CEAT’s profitability in ensuing quarters.

1:16 PM

Despite favourable rural conditions, Emami's Q1 volume growth disappoints

The stock of consumer goods conglomerate Emami was one of the biggest losers among companies in the segment on Wednesday, shedding four per cent as the June quarter results missed analyst expectations. The company reported 14 per cent growth in revenue to a little over Rs 6.1 billion, lower than the consensus estimate of Rs 6.3 billion. READ MORE

1:01 PM

India to clock 7.5% GDP growth, recovery to remain robust: Morgan Stanley

India's economic growth momentum is likely to pick up further in the April-June period and the country is expected to clock GDP growth of 7.5 per cent in this financial year, says a Morgan Stanley report.

 

According to the global financial services major, the growth recovery will remain robust, supported initially by consumption and exports. READ MORE

12:47 PM

Piramal Enterprises hits 52-week high on report of demerger plans

Shares of Piramal Enterprises hit a 52-week high of Rs 3,015 per share, rising 8% on the BSE, after Business Standard reported that the company is set to demerge its pharma and finance arms, and list them on stock exchange. The stock was less than 2% away from its all-time high of Rs 3,065 recorded on June 13, 2017 in intra-day trade. READ MORE

12:27 PM

This graphite electrode stock rallied 96% in 2018 and 1455% in 2017

Shares of graphite electrode manufacturer HEG hit a new high of Rs 4,660, up 5% on the BSE in intra-day trade, after the company reported a stellar set of numbers by reporting a net profit of Rs 7.7 billion for the first quarter of financial year 2018-19 (Q1FY19). The company had posted a net loss of Rs 84 million in the same quarter year ago. READ MORE

12:16 PM

WEB EXCLUSIVE Markets are not prepared for a spike in inflation, sub-par monsoon

A sub-par monsoon and a possible rise in inflation may prove to be a double whammy for the stock markets over the next few months. Most analysts believe the markets are not factoring in this possibility yet.

While reviewing the monetary policy, the Reserve Bank of India (RBI) hiked interest rates for the second consecutive time and cited a spike in inflation as one of key risks going ahead and expects it to touch 5 per cent in first quarter of financial year 2019-20 (Q1FY20). READ MORE

12:01 PM

Market Check

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	11285.00	11346.20	-61.20	-0.54
	9613.40	9651.70	-38.30	-0.40
	18889.20	18905.25	-16.05	-0.08
	7459.30	7468.25	-8.95	-0.12
	12.73	12.53	0.20	1.60

11:45 AM

25 years of NSE How it revolutionised stock trading in India

 

To explain how the NSE changed Indian trading environment requires a description of what stock trading was like, before the NSE arrived. India had a multitude of stock exchanges in the early 1990s with thousands of listed stocks, most of which were listed only on one or two exchanges. Trading involved picking up the phone, and calling a broker who would give a quote.

 

If you wanted to trade a share listed on an exchange that was not local to your city, it involved making an STD (subscriber trunk dialling) call. READ MORE

11:30 AM

Tata Motors sees sharp drop in price targets as JLR reports losses

 

Most brokerages have revised downwards their price target for Tata Motors following losses reported by its luxury unit Jaguar Land Rover (JLR). Reacting to the weak numbers, shares of Tata Motors had declined as much as 6.5 per cent. The stock, however, managed to recoup most of the losses to end 0.3 per cent higher at Rs 265. 

 

Analysts say shares of Tata Motors, down 43 per cent from their 2018 peak, have factored in most of the negative news. “We cut our price target to factor in weaker prospects for JLR but undemanding valuation post steep correction makes risk-reward favourable,” said a note by Jefferies India. READ MORE

11:15 AM

Borosil Glass trades ex-bonus in ratio of 3:1; stock surges 10

 

Shares of Borosil Glass Works rallied 10% to Rs 321, also its new high (adjusted to bonus issue) on the BSE in an otherwise weak market. The stock of houseware company trade ex-bonus in the ratio of 3:1 i.e. 3 equity shares for every one equity share held.

 

Borosil Glass Works has fixed Friday, August 03, 2018 as the 'Record Date' for the purpose of determining entitlement of shareholders for bonus issue of equity shares. READ MORE

11:01 AM

Venky's, Dilip Buildcon removed from ASM framework; stocks surge up to 15%

 

Shares of Venky’s India, Dilip Buildcon, Tinplate Company of India, HIL, Himadri Speciality Chemical and Goa Carbon have rallied up to 15% on the BSE in otherwise weak market after the BSE removed these stocks from the additional surveillance measures (ASM) framework with effect from Thursday.

 

Bhansali Engineering Polymers, Bharat Seats, Man Industries (India), Amrit Corp, Sanwari Agro and Crescent Leasing are also among the 13 stocks which have moved out of the ASM framework from today, the BSE said in a circular. READ MORE

10:46 AM

RBI rate hike 'non-event' for stocks; 2019 polls next focus for investors

 

The morning after the day before and equity strategists remain split on whether the world-beating rally in Indian stocks will continue or pause for breath after Wednesday’s rate hike. All seem to agree that the big focus for investors now is next year’s election.

 

“Investors will forget the rate hike and refocus on individual companies and their outlook,” said Kishor Ostwal, managing director at CNI Research Ltd. in a telephone interview. “The fate of general elections next year will be the focus of attention.” READ MORE

10:30 AM

Co-origination of priority sector loans may boost book in the long run

 

During Wednesday’s monetary policy meet, the Reserve Bank of India (RBI) permitted all scheduled commercial banks to co-originate priority sector loans with non-deposit-taking systematically important non-banking financial companies (NBFCs).

 

Experts believe co-origination would be a win-win for both banks and NBFCs, providing scope to boost the latter's performance in the long term. READ MORE

10:15 AM

Interview of the day Investors can make money in mid, small-caps: SMC Global's Saurabh Jain

 

After a disappointing few months in calendar year 2018 (CY18), mid-cap and small-cap indices have found investor interest in July. SAURABH JAIN, assistant vice-president for equity research at SMC Global Securities says that stocks with good fundamentals will continue to attract investor interest going ahead. Read the full interview here

Saurabh Jain, Head-Fundamental Research at SMC Global Securities

10:00 AM

Market Check

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	37329.31	37521.62	-192.31	-0.51
	15246.85	15312.72	-65.87	-0.43
	16006.24	16043.12	-36.88	-0.23
	16594.33	16628.06	-33.73	-0.20
	4381.56	4403.28	-21.72	-0.49