MARKET WRAP: Nifty ends above 11,000 as PSU banks gain; SBI up 3%

Benchmark indices rose on Tuesday as PSU Banks such as SBI, Bank of Baroda gained

3:42 PM

Nifty PSU Bank index settles 3.86% higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
UNION BANK (I)	80.65	74.40	6.25	8.40
BANK OF BARODA	120.75	113.05	7.70	6.81
PUNJAB NATL.BANK	78.65	73.85	4.80	6.50
ALLAHABAD BANK	42.15	39.65	2.50	6.31
BANK OF INDIA	81.90	77.50	4.40	5.68

3:36 PM

Nifty sectoral gainers of the day

3:34 PM

BSE Sensex: SBI, Sun Pharma, Axis Bank among top gainers of the day, HUL top loser

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 36,520, up 196 points while the broader Nifty50 index settled at 11,008, up 71 points.

3:15 PM

Ashok Leyland first-quarter profit tops expectations

 

Ashok Leyland reported a better-than- expected first quarter net profit on Tuesday, driven by higher sales in its medium and heavy commercial vehicles business.

 

Net profit rose to Rs 3.70 billion ($54.13 million) in the quarter ended June 30 from Rs 1.11 billion a year ago. The year-earlier quarter included a foreign exchange loss of Rs 26.7 million.

3:00 PM

NCLAT stays voting by Bhushan Power & Steel lenders on finalising bids

 

The NCLAT today stayed the meeting of Committee of Creditors (CoC) of Bhushan Power and Steel Ltd to vote on finalisation of bids of the debt-ridden firm.

 

The National Company Law Appellate Tribunal (NCLAT) also pulled up the Resolution Professional (RP) of the company, Mahendra Kumar Khandelwal, for not following its previous orders to allow the representatives of operational creditors to attend the meeting. READ MORE

2:45 PM

NSE registers record volumes as Gift City gains popularity among investors

 

India’s “offshore” trading platform International Financial Services Center (IFSC), Gift City is gaining popularity among investors thanks to tax sops.

 

The daily volume of the National Stock Exchange (NSE) IFSC crossed the $500-million mark for the first time, on July 13. A total of 46,710 index contracts were traded during the day—the highest-ever since NSE launched the special platform for Gift City in June 2017. READ MORE

2:30 PM

Relief for India? US to consider waivers on Iran sanctions, says Mnuchin

 

The United States in certain cases will consider waivers for countries that need more time to wind down imports of oil from Iran as it seeks to avoid disrupting global oil markets while reimposing sanctions against Tehran, US Treasury Secretary Steven Mnuchin said. 

 

"We want people to reduce oil purchases to zero, but in certain cases, if people can't do that overnight, we'll consider exceptions," Mnuchin told reporters on Friday, clarifying some US officials' comments that there would be no exemptions. Mnuchin's comments were embargoed for release on Monday as other US officials were expected to begin talks in India this week on cutbacks in Iranian oil supplies. READ MORE

2:15 PM

PSU banks gain on government capital infusion report

 

Shares of public sector undertaking (PSU) banks were in focus with Nifty PSU Bank index gaining nearly 2% on media report that six banks, including PNB, may get capital infusion of Rs 80 billion.

 

Union Bank of India, Bank of Baroda, Oriental Bank of Commerce, Bank of India, Allahabad Bank, Canara Bank, Punjab National Bank (PNB), Andhra Bank and Syndicate Bank were up in the range of 4% to 6% on the National Stock Exchange (NSE). State Bank of India (SBI) and IDBI Bank were up 1% each READ MORE

2:00 PM

Market Check

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	36357.81	36323.77	34.04	0.09
	14718.92	14649.37	69.55	0.47
	15272.48	15053.77	218.71	1.45
	15865.54	15790.00	75.54	0.48
	4242.12	4229.00	13.12	0.31

1:45 PM

Federal Bank rebounds from 52-week low post Q1 results; stock up 13%

 

Federal Bank has moved higher by 13% to Rs 83.90 on the BSE in noon deal after the private sector lender said its assets quality in June quarter (Q1FY19) remain stable as compared to March quarter.

 

The stock rebounds 14% from its 52-week low of Rs 73.60, touched on the BSE in early morning trade, before the announcement of Q1 results. READ MORE

1:30 PM

Top BSE500 gainers

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
FEDERAL BANK	83.50	9.40	12.69	2629665
REL. COMM.	13.28	1.25	10.39	7267171
M R P L	79.20	5.45	7.39	121196
JAIN IRRIGATION	83.10	4.95	6.33	761052
CG POWER & INDU.	58.20	3.45	6.30	366518

1:15 PM

Can Yes Bank emulate its peers' success in the mutual fund business?

 

In early July, Yes Bank announced that it had received the go-ahead from Securities and Exchange Board of India (Sebi) to start its mutual fund operations. Yes AMC will become the 43rd fund house to join the MF industry.

 

While there are several AMCs currently operating in India, the top 5 AMCs account for 57 per cent of the industry’s AUM. Despite the huge growth potential, there are only a few AMCs that have managed to gain a respectable market share. However, Yes AMC may have a slight edge thanks to the bank-backing. Among the top 5 AMCs in the industry, three happen to be bank-backed AMCs which together account for 36 per cent of industry assets. READ MORE

1:00 PM

WEB EXCLUSIVE Auto sector preview: High fuel prices to potentially impact growth

 

Auto sales in India have been on the fast lane since the implementation of goods and services tax (GST) in July 2017, thanks to an increase in consumer spending coupled with exciting launches by the industry and a buoyant rural economy. Automobile sales volumes have grown steadily in the last three quarters, albeit on a lower base. However, renewed interest by buyers and original equipment manufacturers (OEMs) has led to hefty expectations on Dalal Street with Nifty Auto Index being one of the top performing indices of FY18.

 

In comparison to the financial year 2018-19 (FY18), FY19 has got off to a steady start with Q1 automobile sales showing a 15 per cent year-on-year (YoY) growth, even if on a low base (anticipation of GST), and quarterly volumes growing at 6 per cent. READ MORE

12:46 PM

Six PSBs, including PNB, may get capital infusion of Rs 80 billion: Report

 

Around six public sector banks (PSBs), including the Punjab National Bank (PNB) that has been hit by the Nirav Modi scam, might get a capital infusion of about Rs 80 billion from the government, The Economic Times on Tuesday reported, while citing an unnamed senior finance ministry official. These banks are likely to fall short of regulatory capital requirements.

 

The official told the financial daily that some banks that have issued additional tier 1 capital bonds, with the interest payments being due, would not be allowed to make the required payments if they didn't meet the regulatory capital norms. The government, however, cannot allow PSBs to default on such payments as that would impact their rating, the official added. READ MORE

12:30 PM

More than $6 bn green bond issues still stuck due to rising interest rates

 

Green bonds of huge amounts from India are stuck because of rising interest rates and global uncertainties, even as the country’s largest lender, SBI, is in the process of going through its maiden issue of green bonds of at least $500 million. According to analysts tracking such bonds, the renewable energy sector alone can offer bonds of $3-4 billion.

 

SBI’s plan is to raise another $3 billion through such bonds. To date, Indian companies have raised about $5.4 billion through green bonds in the overseas markets. READ MORE

12:15 PM

Nestle India market cap crosses Rs 1-trillion; stock rises 50% from Feb low

 

Nestle India on Tuesday became the third listed fast moving consumer goods (FMCG) company to join the elite club of firms that have seen their market capitalisation (market cap) soar past the Rs 1 trillion mark.

 

With Rs 1.01 trillion market cap, Nestle India stands at 28th position in overall market-cap ranking; the BSE data shows. The stock is trading at its all-time high level of Rs 10,450, up 2.4% in otherwise subdued market. The S&P BSE Sensex was trading 0.12% or 45 points higher at 36,369 levels. READ MORE

12:00 PM

Markets at Noon

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	36,381.69	+57.92	+0.16
S&P BSE SENSEX 50	11,493.85	+34.43	+0.30
S&P BSE SENSEX Next 50	31,479.78	+308.02	+0.99
S&P BSE 100	11,188.91	+44.44	+0.40
S&P BSE Bharat 22 Index	3,315.32	+16.69	+0.51

(Source: BSE)

11:46 AM

PN Gadgil, KPR Agrochem and Ircon get Sebi's go-ahead to float IPOs

Three companies—Ircon, PN Gadgil & Sons, and KPR Agrochem—have received the Securities and Exchange Board of India’s go-ahead to float initial public offerings (IPOs). With this, a total of around 34 companies have got the market regulator’s go-ahead for public issues.

 

Rail PSU Ircon and KPR Agrochem had filed their preliminary papers with Sebi in March, seeking approval to launch initial share sales, while Pune-based retail jewellery chain PN Gadgil & Sons approached the regulator with IPO papers in May. READ MORE

11:34 AM

Top gainers in BSE 500:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
GRAPHITE INDIA	963.75	917.90	45.85	5.00
HEG	3896.35	3710.85	185.50	5.00
REL. COMM.	12.63	12.03	0.60	4.99
JAIN IRRIGATION	82.00	78.15	3.85	4.93
ALLAHABAD BANK	41.30	39.40	1.90	4.82

11:16 AM

Buyback withdrawals by companies pose headache for Sebi, investors

The withdrawal of share buyback programmes by companies is posing a new headache for the Securities and Exchange Board of India (Sebi) and investors. Shares of troubled PC Jeweller lost a quarter of their value after the jewellery retailer said it was unable to go ahead with its proposed Rs 4.2-billion share repurchase programme. In May 2018, the company had announced its buyback plan to stem a share slide in its stock price. READ MORE

11:02 AM

Apotex buy may not initially contribute to Aurobindo's earnings

Aurobindo’s acquisition of Apotex’s operations in five European countries, announced on Saturday, has not been taken well by the street, as the stock lost five per cent on Monday.

 

The concerns on a possible large-ticket acquisition, putting stress on the company’s balance sheet, also kept the street anxious. Analysts, however, said that while the buyout of Apotex’s operations in The Netherlands, Belgium, Spain, Poland and the Czech Republic makes business sense and has come at a reasonable price, it is unlikely to add to Aurobindo’s profits immediately. READ MORE

10:46 AM

Hindustan Unilever slips 3% post Q1 results on profit booking

Shares of Hindustan Unilever (HUL) have slipped 3% to Rs 1,701 per share on the BSE on Tuesday due to profit booking after the fast moving consumer goods (FMCG) company reported strong numbers for June 2018 quarter (Q1FY19), broadly in-line with analyst estimates. The stock has fallen 4.4% from its all-time high of Rs 1,780 recorded in early morning trade on BSE today. READ MORE

10:29 AM

LIC-IDBI Bank deal likely to breach mutual fund crossholding norms

Life Insurance Corporation of India’s (LIC’s) approval to acquire a majority stake in IDBI Bank on Monday could leave the insurance major holding over 10 per cent stake in three asset management companies (AMCs), a situation the market regulator might not be too happy with. IDBI Asset Management and IDBI MF Trustee Company are subsidiaries of IDBI Bank, and the lender holds 66.7 per cent and 100 per cent in these two entities, respectively. READ MORE

10:15 AM

YES Bank hits new high; rallies 15% in 9 days on SEBI nod to launch MF biz

Shares of YES Bank hit a new high of Rs 386 per share, rising 2% on the BSE, and moving higher for the ninth straight trading session after the bank said that it has received approval from capital markets regulator SEBI to start mutual fund business. The stock surpassed its previous high of Rs 385 recorded on July 12, 2018 in intra-day trade. READ MORE

10:01 AM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	36,399.58	+75.81	+0.21
S&P BSE SENSEX 50	11,498.91	+39.49	+0.34
S&P BSE SENSEX Next 50	31,424.16	+252.40	+0.81
S&P BSE 100	11,190.16	+45.69	+0.41
S&P BSE Bharat 22 Index	3,320.75	+22.12	+0.67

(Source: BSE)

9:46 AM

TCNS IPO prospects good but there's little room for near-term growth

TCNS Clothing Company is coming with an Initial Public Offer (IPO) of equity, involving an offer for sale of 15.71 million shares. Its business prospects look good, with healthy past performance and experienced management; however, the stock valuation suggests investors looking for immediate gains might get disappointed. Analysts, thus, suggest only long-term investors should subscribe. READ MORE

9:32 AM

Q1 results: High valuations factor in strong show by HUL, stock gains

The share price of Hindustan Unilever (HUL) hit a new high of Rs 1,779 intra-day on Monday, before closing 0.73 per cent higher at Rs 1,753.85 on the BSE. The higher close was in anticipation of a strong performance for the June 2018 quarter (Q1).

 

The results, which were declared post market hours, undoubtedly suggest that the Street’s expectations have been met. But considering the high stock valuation, experts believe that the stock already factors in a strong performance over the next two years. READ MORE

9:19 AM

Sectoral Trend

9:18 AM

Top Sensex gainers and losers