MARKET WRAP: Nifty ends flat at 10769; Tata Motors slips 4%, RIL down 2.6%

Read all that happened in the markets on Tuesday

4:03 PM

MARKET COMMENT Jayant Manglik, President, Religare Broking

The escalating global trade tensions between US and other major economies could keep the Indian markets choppy and volatile in the coming sessions. The progress of monsoon and movement of crude oil prices & currency (INR vs USD) will also be closely monitored by the market participants. Investors’ focus should remain on quality stocks with strong financials and bright prospects. However, traders should remain cautious and strictly hedge their positions

3:49 PM

Nifty FMCG index ended 1.04% higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
GLAXOSMITH C H L	6308.55	6061.95	246.60	4.07
UNITED SPIRITS	701.10	674.05	27.05	4.01
MARICO	340.80	331.20	9.60	2.90
GODREJ CONSUMER	1191.25	1160.45	30.80	2.65
BRITANNIA INDS.	6050.10	5977.40	72.70	1.22

3:47 PM

Nifty sectoral gainers and losers

3:44 PM

BSE Sensex: Coal India top gainer of the day, Tata Motors, RIL among top losers

3:33 PM

Market at close

 

The S&P BSE Sensex ended at 35,490, up 20 points while the broader Nifty50 index settled at 10,769, up 7 points.

3:23 PM

Tata Motors' market-cap falls below that of Bajaj Auto, Eicher Motors

Tata Motors market capitalisation (market-cap) has fallen below that of Bajaj Auto and Eicher Motors after a 10% decline in the market price of the company amid concerns over auto tariff threat by the US. READ MORE

3:16 PM

NEWS ALERT Shriram Transport to raise Rs 5,000 crore via NCD

Shriram Transport Finance Company Limited, one of the largest asset financing NBFC in the country, with a primary focus on financing pre-owned commercial vehicles is proposing a public issue of Rs 5,000 crores by issuing 5,00,00,000 (five crore) Secured Redeemable Non-Convertible Debentures (NCDs) of the face value of Rs 1,000 each. 

 

Through Tranch 1 Prospectus dated June 25, 2018 the company is offering to public for subscription 5,00,00,000 (five crore only) NCDs of face value of Rs. 1,000 each aggregating to Rs.5,000 crore with a Base Issue consisting of 1,00,00,000 (one crore) NCDs of face values of Rs.1,000 each aggregating to Rs.1,000 crore with an option to retain over-subscription upto the Shelf Limit of Rs.5,000 crore.

 

The issue will open on June 27, 2018 and close on July 20, 2018, with an option of early closure, subject to the Base Issue size being fully subscribed prior to such early closure and/or extension

(News source: Company release)

3:11 PM

JMC Projects surges 10% on orders win worth Rs 19.66 billion

Shares of JMC Projects (India) have moved higher by 10% to Rs 579 per share on the BSE in intra-day trade after the company said it has secured new orders worth Rs 19.66 billion. READ MORE

3:00 PM

A reviving two-wheeler mkt is shaping the fortune of this component maker

Fifty-six-year-old businessman Anurang Jain is focused on growing his company's profit at a faster pace to revenue. In the last five consecutive years, auto component maker Endurance Technologies has delivered Jain's expectation. No wonder that the firm has created Rs 90 billion in wealth for shareholders in last twenty months after the listing. READ MORE

2:45 PM

Top Nifty50 gainers

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)	VOLUME
COAL INDIA	265.50	259.00	6.50	2.51	8873543
ULTRATECH CEM.	3845.40	3752.00	93.40	2.49	457971
GRASIM INDS	1029.85	1006.55	23.30	2.31	589779
HINDALCO INDS.	222.90	218.40	4.50	2.06	6836890
BHARTI AIRTEL	381.40	374.15	7.25	1.94	3131424

2:30 PM

Videocon, Gitanjali Gems among 430 stocks trading below their face value

 

A sharp correction in small-cap stocks over the past few months has pushed 430 actively traded stocks on the Bombay Stock Exchange (BSE) below their respective face value, as compared to 336 scrips at the beginning of calendar year 2018 (CY18).

 

Gitanjali Gems, Videocon Industries, Jai Balaji Industries, GTL, Orchid Pharma, IVRCL, Jaypee Infratech, PBA Infrastructure, Gammon Infrastructure Project, Tantia Constructions, ABG Shipyard, Shilpi Cable Technologies, Hindustan Dorr-Oliver, Andhra Cements, Burnpur Cement and Tree House Education are some of the prominent stocks quoting below their respective face value. READ MORE

2:15 PM

MUST READ Hedge funds allege $1.5 bn fraud by Indian real estate firm IREO Management

 

Two high-profile hedge funds accused one of India’s biggest real estate developers of defrauding its foreign investors out of as much as $1.5 billion, potentially one of the largest private equity scams ever.

 

IREO Management engaged in a billion-dollar criminal conspiracy involving shadow companies, dumped documents and “astonishing theft,” according to Axon Capital and Christopher Hohn’s Children’s Investment Fund Foundation. READ MORE

1:59 PM

Market Check

 

S&P BSE Sensex	35,515.26		0.13%
Nifty 50	10,759.60		-0.03%
S&P BSE 200	4,644.16		0.12%
Nifty 500	9,226.10		-0.09%
S&P BSE Mid-Cap	15,682.22		-0.20%
S&P BSE Small-Cap	16,309.21		-0.51%

1:46 PM

Time value of money

The core idea behind ‘time value of money’ is that, a rupee ‘today’ can earn and grow with time. That is why a rupee today, is worth more than a rupee in the future. This is based on potential earning capacities. READ MORE

1:30 PM

Tata Motors, Motherson Sumi, NBCC, BEL, Century Textiles hit 52-week low

 

Shares of Tata Motors, Motherson Sumi Systems, NBCC, Bharat Electronics (BEL), Century Textiles Industries, NHPC, NTPC, Rural Electrification Corporation (REC) and UPL were among 12 stocks from the S&P BSE 200 index that hit their respective 52-week lows on the BSE on Tuesday.

 

The public sector banks like Bank of Baroda, Bank of India and Union Bank from the index, too, touched 52-week lows in intra-day trade today. According to PTI report, top officials of 11 state-owned banks will appear before a parliamentary committee today to apprise its members of the bad loan issues and rising fraud cases in the banks. READ MORE

1:15 PM

Volume Toppers

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
VAKRANGEE	57.85	2.75	4.99	5419170
JP ASSOCIATES	16.80	-0.65	-3.72	3352256
REL. COMM.	14.50	-0.15	-1.02	2933139
IDEA CELLULAR	57.95	1.75	3.11	2562212
H F C L	29.90	-0.10	-0.33	2229939

1:01 PM

Here's why India's life-saving plan for IDBI Bank makes no sense

Rescuing a dying bank with taxpayers' money is often the only way to prevent a costlier contagion. But nursing a deposit-taking institution by tapping life-insurance premiums of policyholders? That's like allowing a localized infection to spread all over, hoping the natural immunity of an otherwise healthy body will help beat back the germs. READ MORE

12:47 PM

UPL's turnaround script for FY19: It hasn't been the best of starts, indeed

It has not been the best of starts in FY19 for UPL. The company failed to hit its annual revenue growth guidance of 8-10 per cent for FY18, the first time it has happened in five years.

 

This, coupled with concerns on high raw material costs, falling prices in key markets of Brazil and North America and currency fluctuations, as well as continuous spends on capital expenditure, has led to the muted sentiment for the stock so far. The stock has shed about eight per cent in one week, and is down almost 23 per cent since its highs earlier this calendar year. READ MORE

12:30 PM

Cement stock: Onset of monsoon may keep pricing and demand in check

 

Cement stocks have witnessed a downtrend in this seasonally strong June quarter. All major cement stocks such as ACC, Ambuja Cements, Shree Cement and UltraTech have hit 52-week lows last Thursday. Concerns over rising costs, and the fact that realisations are not keeping pace persist even when the volume growth is decent.

 

This has weighed on investors' sentiment. With the next quarter seasonally weak, cement stocks may remain under check. READ MORE

12:16 PM

Global funds' India bullishness dips to lowest in five years

 

Gone are the days when India attracted more than its fair share of foreign flows. Global funds’ India preference has dropped to the lowest since 2013 amid a deteriorating macro environment, with weakening of the rupee and surging crude oil prices.

 

Currently, the consensus ‘overweight’ on India vis-à-vis its weight in the influential MSCI Emerging Market (EM) index is around 100 basis points (bps), down from 800 bps in 2015. Even at the time of taper tantrum in 2013 when foreign investors were shunning EMs, funds were overweight 300 bps on India. READ MORE

12:01 PM

Markets at Noon

S&P BSE Sensex	35,558.78		0.25%
Nifty 50	10,788.40		0.24%
S&P BSE 200	4,650.91		0.26%
Nifty 500	9,249.20		0.16%
S&P BSE Mid-Cap	15,721.41		0.05%
S&P BSE Small-Cap	16,349.36		-0.26%

11:46 AM

Hospital stocks: Lack of clarity on regulations acting as an overhang

 

Hospital stocks have been trading at their 52-week lows this month on regulatory headwinds and weak March quarter results. The goods and services tax regime, stent and kneecap prices, and regional competition have spiked worries among investors about the near-term prospects of the listed health care providers such as Apollo Hospitals, Fortis Healthcare, Max as well as some of the recent listings, including Narayana Hrudayalaya, Shalby and Aster DM. READ MORE

11:31 AM

Top BSE500 gainers 

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
GLAXOSMITH C H L	6443.00	368.90	6.07	2202
INFO EDG.(INDIA)	1236.70	61.10	5.20	15229
VAKRANGEE	57.85	2.75	4.99	2544356
ASTRAL POLY	1032.00	36.40	3.66	891
HEIDELBERG CEM.	141.25	4.85	3.56	4142

11:23 AM

Motilal Oswal on ACC

We expect volume growth for ACC to be lower than industry growth of ~7% due to capacity constraints over CY17-CY19E. Additionally concerns about cost structure which will keep ACC's operating margin lower than industry due to inefficient operations is likely to keep valuations at check. The stock trades at CY19E EV/EBITDA of 9.7x. We value the stock at Rs 1,747 (11x CY19E EV/EBITDA). Maintain 'neutral' rating.

11:16 AM

Info Edge gains 10% after agreement with SoftBank for joint investment

Shares of Info Edge (India) have surged 10% to Rs 1,288 per share on the BSE in intra-day trade after the company announced that it has signed an agreement with SoftBank to jointly invest $90 million in Etechaces Marketing and Consulting, the parent of PolicyBazaar, for an 8.93% stake on a fully diluted basis. READ MORE

10:59 AM

Norms to move stocks under additional surveillance mechanism get stricter

In a bid to further improve the risk management system, the Securities and Exchange Board of India (Sebi) and bourses have tightened rules for putting stocks under the ‘additional surveillance mechanism’. The new rules also consider a stock’s valuation, price to earnings ratio, client concentration and gyration in the price, over a period of one month and one year. READ MORE

10:45 AM

Avanti Feeds turns ex-stock split; stock surges 19%

Shares of Avanti Feeds have rallied 19% to Rs 619 per share on the BSE in early morning trade on Tuesday in an otherwise subdued market. The stock of shrimp exporter has turned ex-stock split in the ratio of 1:1 and ex-bonus in the ratio of 1:2 from today. READ MORE

10:31 AM

HDFC MF gets Sebi go-ahead for IPO after nearly two months on backburner

HDFC Mutual Fund has obtained a go-ahead to launch its initial public offering (IPO), two investment bankers handling the issue said. “Sebi has issued final observation on the offer document. The company will have to respond to the market regulator,” said an investment banker, adding that the asset manager is looking to launch its IPO in the second or third week of July. READ MORE

10:16 AM

Santosh Kumar Mohanty takes charge as Sebi whole time member

Santosh Kumar Mohanty took charge as wholetime member (WTM) of the Securities and Exchange Board of India (Sebi) for a three-year tenure. The announcement comes two days after the central government elevated Ananta Barua, a Sebi executive director (ED), as another WTM. This is the first time the markets regulator will have four fulltime members on the board. READ MORE

10:01 AM

MARKETS AT 10AM

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,485.37	+15.02	+0.04
S&P BSE SENSEX 50	11,280.31	+12.36	+0.11
S&P BSE SENSEX Next 50	32,433.96	+55.87	+0.17
S&P BSE 100	11,059.64	+13.15	+0.12
S&P BSE Bharat 22 Index	3,366.78	+6.92