MARKET WRAP: Sensex ends 207 pts up led by RIL, Sun Pharma; Rupee hits 70/$

Among sectoral indices, the Nifty Pharma index ended over 3 per cent higher led by rise in the shares of Sun Pharmaceutical Industries and Lupin.

3:49 PM

Nifty Pharma index ends 3.21% higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
SUN PHARMA.INDS.	601.80	563.90	37.90	6.72
BIOCON	589.40	571.70	17.70	3.10
DIVI'S LAB.	1154.55	1120.20	34.35	3.07
LUPIN	836.75	811.95	24.80	3.05
CIPLA	642.75	628.30	14.45	2.30

3:37 PM

Nifty sectoral gainers and losers

3:35 PM

BSE Sensex: Sun Pharma, YES Bank, RIL among top gainers of the day

3:33 PM

Market at close

The S&P BSE Sensex ended at 37,852, up 207 points while the broader Nifty50 index settled at 11,435, up 79 points.

3:12 PM

External factors, selective intervention by RBI led to rupee's fall: Garg

The government on Tuesday blamed "external factors" for the rupee's fall to an all-time low against the US dollar and said there is nothing to worry. Economic Affairs Secretary Subhash Chander Garg said external factors may ease going forward. READ MORE

3:02 PM

Sun Pharma rallies 7% as Q1 profit beats Street estimates

Shares of Sun Pharmaceutical Industries have rallied 7% to Rs 600 per share on the BSE after the pharmaceutical company reported a better-than-expected consolidated net profit at Rs 9.83 billion in June quarter (Q1FY19). The company had posted a loss of Rs 4.25 billion in the same quarter year ago. READ MORE

2:44 PM

MCX to launch rubber futures on Aug 16

Leading commodity bourse MCX today announced launching of the rubber futures from August 16 to provide hedging to the entire value chain in the rubber industry. The MCX said it will offer four futures contracts in rubber with each ending September, October, November and December, respectively, an official statement said. READ MORE

2:30 PM

Sebi's consent route to ease pending case load yields success in FY18

 

Markets regulator Securities and Exchange Board of India (Sebi) settled double the number of cases through the so-called consent mechanism in 2017-18, compared to the previous fiscal. According to data, Sebi resolved 200 cases through the consent route last fiscal as against 103 in 2016-17.

 

The amount earned by Sebi as settlement fees also saw a more than two-fold increase to Rs 300 million in FY18, compared to Rs 135 million in FY17. READ MORE

2:15 PM

STOCK ALERT Cadila Healthcare nears 52-week low post June quarter results

 

Shares of Cadila Healthcare have slipped 5% to Rs 336 per share, extending their 6% decline on Monday on the BSE, after the company reported a lower-than-expected 30% year on year (YoY) growth in net sales at Rs 28.94 billion in the June quarter (Q1FY19) due to lower US sales.

 

The company’s net profit grew by 233% YoY to Rs 4.60 billion in Q1FY19 due to other income of Rs 1.01 billion. READ MORE

2:00 PM

Market Check

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	11439.80	11355.75	84.05	0.74
	9718.75	9656.50	62.25	0.64
	19114.50	19012.40	102.10	0.54
	7473.65	7463.65	10.00	0.13
	13.23	13.40	-0.17	-1.27

1:46 PM

COMMENT Aditi Nayar, Principal economist, ICRA on rupee, inflation

As expected, a favourable base effect for primary food items and minerals, dampened the WPI inflation to 5.1% in July 2018 from 5.8% in June 2018, mirroring the extent of the correction displayed by the CPI inflation print.

Contagion related to the crisis in Turkey has seeped into other emerging market currencies, causing the INR to depreciate as well. Factors such as broader emerging market currency movement, dollar strength, and the trend in crude oil prices will drive the outlook for the INR in the immediate term, which will have an impact on the landed cost of imports as well as various commodity prices, thereby transmitting into the WPI inflation.

Given the prevailing risk aversion in the global markets, the rupee is expected to remain volatile going ahead, and average 68.5/USD in FY2019

1:43 PM

MARKET COMMENT Sharekhan on rupee hitting 70 per dollar

Turkey crisis has triggered risk of trade leading to strengthening of US Dollar against all major currencies, especially, emerging market currencies. INR has relatively seen higher depreciation due to concerns related to fiscal slippages and dependence on imports for energy requirements. Going ahead, in the near term, we see scope for further pressure on INR despite the expected intervention by RBI.

 

Strategy for equity investors: We expect weakness in INR to be sentimentally positive for IT Services, select auto ancillaries and other export-driven companies. On the other hand, it would be negative for import dependent sectors including oil marketing companies and global commodities like metals

1:43 PM

PVR's acquisition of SPI Cinemas: Benefits offset high deal valuations

The Rs 6.33 billion price for a 71.7 per cent stake in SPI Cinemas enhances PVR’s pan-India presence, especially South India, where it had weak presence. Though South India accounts for half of India’s multiplex screens, it accounted for only 26 per cent of PVR’s overall portfolio. READ MORE

1:29 PM

Where is the rupee headed? Experts weigh in

Rupee hit a record low of 70 to the US dollar, making it the worst currency in the Asian region thus far in calendar year 2018 (CY18). The fall comes on the back of Turkey-led sell-off over the past few sessions. READ MORE

1:14 PM

IT shares extend gains; TCS, Infosys hit new highs

Shares of information technology (IT) companies were trading higher for the third straight day due to persisting weakness in the rupee. The rupee hit an all-time low of 70.08 against US dollar on Tuesday. READ MORE

12:58 PM

Rupee headed towards 72 levels; IT, pharma stocks to benefit, say analysts

After a firm opening, the rupee hit an all-time low of 70.1 per dollar on Tuesday, as concerns of Turkey’s economic crisis, triggered by plunging Turkish lira, aided the dollar to gain against all major global currencies. The sell-off spilled over to other emerging-market currencies after the country’s president showed no signs of backing down in a standoff with the US. READ MORE

Photo: Shutterstock

12:47 PM

WPI inflation eases to 5.09% in July after hitting 4-year high in June

India's annual rate of inflation based on wholesale prices eased to 5.09 per cent in July from a rise of 5.77 per cent in June, official data showed on Tuesday. READ MORE

12:28 PM

Q1 earnings: Auto companies lag behind Street estimates by wide margin

Investor sentiment for a majority of auto companies has been muted after the first-quarter earnings showed that revenues and profits varied from analysts’ estimates. READ MORE

12:14 PM

Why you should not exit funds based on a year's underperformance

Large-cap funds have underperformed their benchmarks by a wide margin over the past year. Even funds in the large- and mid-cap category and the multi-cap category (most funds in these categories currently have high exposure to large-cap stocks) are also underperforming their benchmarks by wide margins. READ MORE

12:00 PM

Markets at noon

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	37811.75	37644.90	166.85	0.44
	15392.41	15323.04	69.37	0.45
	16115.68	16097.78	17.90	0.11
	16718.35	16653.85	64.50	0.39
	4426.06	4403.84	22.22	0.50

11:52 AM

IT midcaps' focus on sales reaps dividend; L&T Infotech posts 30% growth

Midsize IT firms had a good run in the June quarter of FY19, backed by stronger deal wins, reflecting that the investment that these companies had made in recent years, in reinvigorating their sales engines, are starting to pay dividends. READ MORE

11:38 AM

Navneet Education gains 8% as board mulls share buyback proposal

Shares of Navneet Education have rallied 8% to Rs 127 per share on the BSE in intra-day trade on Tuesday after the company announced that its board will consider share buyback proposal on Monday, August 20, 2018. READ MORE

11:34 AM

MARKET COMMENT Edelweiss on Turkey crisis impact

 

The Turkish lira (TRY) has plunged 25% in a week (45% year to date). A heady mix of high foreign debt, large CAD and deteriorating political situation has rendered Turkey quite vulnerable. But what has been perhaps more critical is the upward pressure on global interest rates in 2018 owing to an aggressive Fed and US fiscal stimulus. How this situation evolves hereon hinges on Turkey’s policy response. 

 

In our view, it would be a mistake to see this as only a country-specific phenomenon; there is a larger dynamic at play. Credit cycles in several EMs remain weak and domestic debt is high, and thus they are incapable of chasing Fed rates higher. This dynamic shows up in the pressure on EM BoP, which tightens liquidity and potentially hurts growth (See our blindspot note for more details). 

 

India, while much less vulnerable to CAD/debt dynamics, may face the brunt of weaker global growth and tightening domestic liquidity. In such a scenario, we think a softer monetary stance by the Fed would limit the damage

11:29 AM

Nirmal Bang on Balkrishna Industries (BIL)

We have increased our existing volume growth estimates and currently factor in 15%/13% YoY volume growth for FY19/FY20, respectively, while our earnings estimates stand revised upwards by 6%/3% for FY19/FY20, respectively, to factor in higher volume and realisation growth in the coming quarters. We have retained Accumulate rating on BIL with a revised target price of Rs1,281 (21x FY20E EPS) as we remain positive on the stock with volume growth likely to remain strong in the coming quarters

11:28 AM

TOP BSE 500 GAINERS TODAY

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)	VOLUME
MANPASAND BEVER.	131.50	125.25	6.25	4.99	335952
NAVNEET EDUCAT.	124.05	118.15	5.90	4.99	112270
KWALITY	21.25	20.24	1.01	4.99	597815
ADITYA BIR. FAS.	187.40	178.55	8.85	4.96	461277
BALKRISHNA INDS	1287.00	1227.85	59.15	4.82	34320

11:25 AM

Trading strategy for the rupee (Source: ICICI Securities)

11:18 AM

BS Special A new all-time low: Rupee at 70 a dollar now, but let us be reasonable

The rupee has already plunged under 70 to a dollar. How much more? The question is very relevant, now that the rupee has breached that psychological mark. Just a week ago, one thought the rupee would settle in the range of 68-69 a dollar; but the currency suddenly gravitated towards and then under 70. Curiously, the Reserve Bank of India (RBI) had mentioned in its last credit policy that trade wars were a major concern. But the concept of trade wars has assumed another dimension now, going beyond the US and China. READ MORE

rupee & dollar

11:03 AM

Rupee plunge continues, crashes to all-time low of 70.01 against US dollar

The rupee erased early gains to hit an all-time low of 70.1 per dollar on Tuesday, as concerns about Turkey’s economic woes persisted. The rupee was last at 69.99 to the dollar, compared with its previous close of 69.95 per dollar. READ MORE

10:50 AM

MARKET COMMENT Emkay Global on inflation

Lower food inflation is also indicating that the rural distress has not yet abated completely. So far in Aug’18, we have not witnessed any uptrend in food inflation. Overall, CPI is expected to average ~4.7-4.9% in FY19, with a rising inflationary trend in Q4. We expect more than 25bps hike in FY19, but RBI might pause in the Oct’18 policy. 

10:47 AM

Bata India, Graphite India, Page Industries, United Breweries hit new high

 

Shares of companies that posted a robust earnings growth during April-June (Q1FY19) quarter have gained, with Bata India, Graphite India, Page Industries, Pfizer, United Breweries and Vinati Organics hitting their respective new highs on the BSE on Tuesday.

 

Infosys, JSW Steel, Infibeam Corporation, GMM Pfaudler, International Paper APPM, Lumax Auto Technologies and TCI Express from the S&P BSE 500 and S&P BSE Smallcap index also touched their all-time highs value in the intra-day trade. READ MORE