MARKET WRAP: Indices end lower as govt faces no-confidence motion

Benchmark indices erased early gains on Wednesday as the opposition parties tabled a no-confidence motion against govt

3:41 PM

Nifty Metal Index ended 3.15% lower today. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
JINDAL STEEL	185.30	199.00	-13.70	-6.88
TATA STEEL	505.20	532.35	-27.15	-5.10
HINDALCO INDS.	212.20	219.50	-7.30	-3.33
HIND.COPPER	55.10	57.00	-1.90	-3.33
VEDANTA	203.35	210.10	-6.75	-3.21

3:36 PM

Nifty sectoral losers of the day

3:35 PM

BSE Sensex: ONGC top gainer of the day, Tata Steel, Vedanta, Axis Bank among top losers

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 36,373, down 147 points while the broader Nifty50 index settled at 10,980, down 28 points.

3:22 PM

NEWS ALERT: Cabinet approves increase in FRP of sugarcane by Rs 20/quintal

3:15 PM

WEB EXCLUSIVE Nifty Metal index could enter a bear phase, say analysts

 

Metal stocks are slowly heading towards a bear phase – typically described as a fall of 20 per cent or more from peak levels – given the ongoing trade war concerns, feel analysts.

 

The Nifty Metal index that lost nearly 2.6 per cent in trade on Wednesday was the worst performing sectoral index on the National Stock Exchange (NSE). On a year-to-date (YTD) basis, the index has already lost over 16 per cent as compared to around 5 per cent rally in the Nifty50 index, ACE Equity data shows. READ MORE

3:00 PM

Bandhan Bank surges 6% on healthy Q1 results; stock hits new high

 

Shares of Bandhan Bank surged 6% to Rs 596 on the BSE after the bank reported a strong 47.5% year on year (yoy) growth in net profit at Rs 4.82 billion in June quarter (Q1FY19), on back of strong operational income. The private sector lender had a profit of Rs 3.27 billion in year ago quarter.

 

The stock was trading at its highest level since listing on March 27, 2018. It gained 59% over the issue price of Rs 375. READ MORE

2:46 PM

UltraTech Cement first-quarter profit beats estimates

 

UltraTech Cement on Wednesday reported a first-quarter net profit of Rs 5.98 billion ($87.15 million), beating street estimates. Revenue from operations stood at Rs 86.55 billion.

2:30 PM

Stocks at 52-week low

COMPANY	PRICE( )	52 WK LOW	CHG( )	CHG(%)
ADVANCE. ENZYME.	204.80	204.00	-2.00	-0.97
APAR INDS.	612.15	610.65	-10.50	-1.69
BEML LTD	772.25	761.80	-17.05	-2.16
BHARAT ELECTRON	99.30	99.05	-4.75	-4.57
BHARTI AIRTEL	336.15	331.20	-6.10	-1.78

2:15 PM

From HSCC to Central Electronics, strategic sale of 5 PSUs likely in FY19

 

The Department of Investment and Public Asset Management (Dipam) has carefully examined 30 strategic sale candidates and earmarked five — HSCC, Engineering Projects India, Pawan Hans, Scooters India and Central Electronics — which it is confident of selling in 2018-19.

 

The move comes after the government failed to find a single bidder for Air India, threatening to derail the Rs 800 billion disinvestment target for the current financial year. READ MORE

2:00 PM

Market Check

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	36465.36	36519.96	-54.60	-0.15
	14747.50	14786.73	-39.23	-0.27
	15240.21	15376.11	-135.90	-0.88
	15862.09	15966.18	-104.09	-0.65
	4253.97	4258.84	-4.87	-0.11

1:45 PM

Metal index hits 52-week low; Tata Steel, JSPL dip over 5%

 

Shares of metal companies were under pressure with the Nifty Metal (down 3.3% at 3,117) and the S&P BSE Metal index (3.3% at 11,828) hitting their respective 52-week lows after more than 5% decline in market price of Tata Steel and Jindal Steel and Power (JSPL).

 

The metal indices plunged 20% from their recent highs recorded on April 19, 2018. READ MORE

1:30 PM

JSW Steel gears up for next phase of growth, plans to raise Rs 250 bn

 

With Rs 450 billion in capital expenditure (capex) planned over the next 30-odd months, JSW Steel, the country’s largest in the segment by market value, is gearing up for the next phase of growth. The levers would be higher volume, better product mix, backward integration and de-risking by entering newer markets.

 

All these should help the JSW Steel stock (which is to enter the National Stock Exchange's benchmark Nifty index, dislodging pharma maker Lupin), sustain its outperformance. READ MORE

1:15 PM

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.

 

TCNS is a leading women’s branded apparel company, the target customers being those with jobs. READ MORE

1:00 PM

Top BSE500 losers

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
ASHOK LEYLAND	117.85	-10.65	-8.29	4795316
HIND.CONSTRUCT.	10.15	-0.57	-5.32	1071924
V-MART RETAIL	2241.90	-117.95	-5.00	2647
UNION BANK (I)	76.75	-4.00	-4.95	448689
VAKRANGEE	45.35	-2.35	-4.93	998187

12:46 PM

Bharti Airtel, Idea Cellular, Tata Comm hit 52-week lows

 

Shares of telecom services providers (telcos) are under pressure with all major listed stocks – Bharti Airtel, Idea Cellular and Tata Communications – hitting their respective 52-week lows on the BSE, on concerns of weak earning in June quarter (Q1FY19).

 

In past one month, these three stocks have fallen in the range of 10% to 20% against 3% rise in the benchmark index. READ MORE

12:30 PM

Ashok Leyland hits over 5-month low; stock slips 8%

 

Shares of Ashok Leyland hit an over five-month low of Rs 119 per share, down 8% on the BSE, in otherwise firm market despite the company reporting a better than expected net profit for the quarter ended June 2018 (Q1FY19).

 

Ashok Leyland, which is currently trading at its lowest level since February 2, 2018, has fallen 29% from its 52-week high of Rs 168 touched on May 8, 2018. The stock recorded a 52-week low of Rs 98.80 on August 11, 2017 in intra-day trade. READ MORE

12:15 PM

After targeting over 200,000 shell firms, govt is trying to weed out LLPs

 

After striking over 200,000 ‘shell’ firms off the records, the government is now trying to weed out limited liability partnerships (LLPs). The Ministry of Corporate Affairs has sent notices to 7,775 LLPs for not filing annual returns for at least two consecutive years, according to officials.

 

At the same time, registrars of companies (RoCs) across the country are striking off LLPs in their respective jurisdiction for not conducting any business. More than 1,700 LLPs have been struck off by the RoC Mumbai and 1,100 by the RoC Delhi in recent months. READ MORE

12:01 PM

Markets at Noon

 

S&P BSE Sensex	36,625.35		0.29%
Nifty 50	11,049.20		0.37%
S&P BSE 200	4,708.48		0.10%
Nifty 500	9,326.85		0.12%
S&P BSE Mid-Cap	15,251.40		-0.81%
S&P BSE Small-Cap	15,934.50		-0.20%

11:43 AM

Eye on consumer biz, Mukesh Ambani's RIL plans to raise Rs 400 bn in FY19

Reliance Industries Ltd., India’s second-largest company by market value, plans to raise about Rs 400 billion ($5.8 billion) in fresh debt this financial year as it expands its consumer businesses, according to people familiar with the matter.

 

The billionaire Mukesh Ambani-led company will raise funds through loans and bonds, mostly in the Indian currency, the people said asking not to be named. Of this, the refining-to-retail conglomerate already has shareholder approval to raise as much as Rs 200 billion through non-convertible debentures. READ MORE

Mukesh Ambani arrives for the 41st AGM of Reliance Industries Ltd at Birla Matoshree, in Mumbai on 05th, July,2017- KAMLESH PEDNEKAR

11:32 AM

Top gainers in BSE500:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
8K MILES	379.30	351.75	27.55	7.83
FUTURE CONSUMER	44.30	41.45	2.85	6.88
I O B	14.34	13.49	0.85	6.30
LA OPALA RG	241.30	227.80	13.50	5.93
INDO COUNT INDS.	84.70	80.00	4.70	5.88

11:18 AM

Iran oil sanctions: India, US hold talks as Washington hints at exemptions

A high-level delegation from the US on Tuesday held crucial talks with Foreign Secretary Vijay Gokhale over the US sanctions on the import of Iranian oil amid indications that Washington may offer an exemption to some countries from the restrictions. READ MORE

11:00 AM

HDFC Group shares in focus; HDFC, HDFC Bank hit new high

Shares of two HDFC Group companies - Housing Development Finance Corporation (HDFC) and HDFC Bank - have hit their respective new highs, gaining more than 1% each on the BSE.
 

HDFC Bank hit a record high of Rs 2,214, rising by 2%, and surpassing its previous high of Rs 2,190 while HDFC was up 1.2% at Rs 2,014, surpassing its earlier high of Rs 2,000 on the BSE on Monday in intra-day trade. READ MORE

10:47 AM

Several mutual fund players give IDFC a miss on valuation concerns

IDFC might have found a buyer for its Rs 650-billion mutual fund (MF) subsidiary in the form of KKR-backed Avendus Capital but most industry participants have opted out of the race on valuation concerns. According to sources, Mirae AMC and Reliance MF were among those which had earlier evinced interest but didn’t pursue the deal, as they felt IDFC was seeking a steep valuation. READ MORE

10:31 AM

Don't invest only for free insurance, opt for a fund based on performance

The introduction of long-term capital gains tax (LTCG) on equities in the latest Union Budget gave unit-linked insurance plans (Ulips) a boost. Insurance agents were quick to push the latter product, highlighting that investors would not be taxed if they invested in a Ulip.

 

To counter the insurance sales pitch, mutual funds (MFs) have recently started sending mailers to investors, informing them of the free life insurance cover on offer if they opt for a Systematic Investment Plan (SIP). READ MORE

10:16 AM

Select PSBs extend gain on government's Rs 113 bn capital infusion plan

Shares of select public sector banks (PSBs) rallied up to 14% in early morning trade on Wednesday, extending their previous day’s surge on the BSE, after the government has decided to infuse Rs 113 billion into five PSBs, including Punjab National Bank (PNB), to help them meet regulatory capital requirements.

Indian Overseas Bank (IOB), Corporation Bank, Dena Bank, Andhra Bank and Vijaya Bank gained 1% to 6% on the National Stock Exchange (NSE). IOB was trading 6% higher after ralliing 14% to Rs 15.30 in intra-day trade today. READ MORE

10:00 AM

Market Check

 

S&P BSE Sensex	36,622.56		0.28%
Nifty 50	11,041.15		0.30%
S&P BSE 200	4,713.58		0.21%
Nifty 500	9,335.95		0.22%
S&P BSE Mid-Cap	15,330.74		-0.30%
S&P BSE Small-Cap	15,987.52		0.13%

9:47 AM

JSW Steel gears up for next phase of growth, plans to raise Rs 250 bn

With Rs 450 billion in capital expenditure (capex) planned over the next 30-odd months, JSW Steel, the country’s largest in the segment by market value, is gearing up for the next phase of growth. The levers would be higher volume, better product mix, backward integration and de-risking by entering newer markets. READ MORE

9:32 AM

Risk-reward turns favourable for CIL; good dividend yield comes as a boost

The Coal India stock has corrected 16 per cent from its February high on concerns of stake sale by the government. While the sale overhang may persist, it is also providing an opportunity to investors.

 

The correction has made the stock valuation inexpensive while the earnings outlook remains intact, which is why many analysts find the company's stock risk attractive. READ MORE

9:20 AM

Sectoral Trend