Sensex, Nifty settle at record closing highs; Nifty Bank ends above 25,000

All that happened in Monday's trade

4:06 PM

Vinod Nair, Head of Research, Geojit Financial Services 

 

Good results from index heavyweights continue to add liquidity, while country’s largest PSU bank SBI's interest rate cut decision attracted investors to the banking stocks on expectations of more peers to follow the trend. Additionally, moderation in inflation to below RBI's target of 4% heightened the hopes of rate cut in the next monetary policy.

4:04 PM

Q1 Earnings

 

Tech Mahindra reported 34.3% sequential growth in its consolidated net profit at Rs 791.8 crore against 589.7 crore reported in the same quarter of the previous fiscal year. The IT major's revenue growth in CC terms rose 2.1% to Rs 7336.1 crore, while dollar revenue growth came in at $1138 million, up 0.6% QoQ.

3:57 PM

HEATMAP: Top Sensex gainers and losers

Source: BSE

3:48 PM

Market breadth turns negative

The breadth, indicating the overall health of the market, turned negative. On the BSE, 1,425 shares fell and 1,255 shares rose. A total of 196 shares were unchanged.

3:46 PM

Broader markets trail behind 

 

The BSE Midcap index added 0.3%, while the BSE Smallcap gained 0.1% at close.

3:44 PM

Nifty PSU Bank (up 3.6%) was the leading sectoral gainer, led by gains in SBI (up 4.5%), Bank of Baroda (up 2.9%) and Punjab National Bank (up 2.4%). 

3:42 PM

Nifty Bank ends above 25,000 for first time ever

Source: NSE

3:37 PM

Markets end at record highs

 

The Sensex settled above 32,500 for the first time ever, while Nifty ended firmly above 10,050. At close, the Sensex quoted 32,514, up 205 points, while the Nifty50 was at 10,070, up 62 points. 

3:31 PM

Pharma index top sectoral loser; Lupin hits 52-week low 

 

Shares of pharmaceutical companies continued to trade under pressure with Nifty Pharma index down more than 1% for the third straight trading sessions after firms reported a disappointing set of numbers for the quarter ended June 2017 (Q1FY18). CLICK HERE FOR MORE

3:25 PM

Nifty Bank continues to trade above 25,000

The index is set for record closing high. SBI, Bank of Baroda, ICICI Bank top gainers.

3:12 PM

Some of the largest investors, intermediaries and issuers in Asia Pacific are confident of India's stable economic growth in the region of 6.5% and 7.5% over the next 12-18 months, Moody's Investors Service said in a statement on Monday. CLICK HERE FOR MORE

3:11 PM

Markets check

At 3:10 am, the Sensex was trading at 32,511, up 201 points, while the broader Nifty50 was ruling at 10,074, up 61 points. 

3:06 PM

Volatility index VIX surged 7% to 11.95. 

Source: NSE

2:45 PM

Global market update

European markets opened higher as investors awaited key economic data and digested earnings reports. The pan-European Stoxx 600 was up 0.33%, Germany's DAX gained 0.1%, while Britain's FTSE 100 was up 0.5%. France's CAC 40 was trading flat. 

 

Asian markets ended positive. MSCI's broadest index of Asia-Pacific shares outside Japan reversed early losses to rise 0.25%. Chinese shares rose, buoyed by several leading companies' forecasts for strong mid-year earnings. The blue-chip index and the Shanghai Composite both rose 0.6%. Hong Kong's Hang Seng climbed 1% to a two-year high. Japan's Nikkei bucked the trend to end 0.17% lower. 

2:21 PM

Top Sensex gainers and losers

Source: BSE

2:03 PM

Markets check

At 2:00 pm, the Sensex was trading at 32,492, up 182 points, while the Nifty50 was ruling at 10,061, up 47 points.

1:43 PM

Jimeet Modi, CEO, SAMCO Securities on SBI savings bank account rate cut

 

SBI, unlike its private sector peers, offers vanilla savings accounts to public with minimum operating charges and hence heavily relies on interest income from such available float. The rate cut by the SBI on savings bank account is a strategic move by the bank aimed at increasing profits. The bank has an above average CASA ratio of 45.58% for the year ended March 31, 2017 which shows that it has large savings pool. This move will result in increasing its net interest margins which are currently below standards at 2.84% for the quarter ended March 31, 2017. This is purely a commercial move which will boost profitability and ratios for the bank. 

1:32 PM

Metal stocks continue shining

Nifty Metal index gained 1.5% with all but two stocks trading in green.

Source: NSE

 

1:17 PM

Seven stocks from the S&P BSE Smallcap index have rallied by more than 50% thus far in July. CLICK HERE FOR THE FULL REPORT

1:04 PM

Dr Reddy's extends fall for third straight session

After nearly 10% fall in the last two sessions, Dr Reddy's extended losses by over 3% to Rs 2,385. The company on Thursday reported 53.21% year-on-year fall in consolidated net profit at Rs 59.10 crore for the June quarter. It witnessed double-digit price erosion in the US due to competition in key products and channel consolidation.

12:33 PM

SBI STOCK RALLIES ON CUT IN SAVINGS BANK RATE

Shares of public sector undertakings (PSU) banks were trading higher by upto 4%, recovering from their intra-day lows, after the state-owned banking giant State Bank of India (SBI) cut saving bank interest rates READ THE STORY HERE

12:30 PM

SBI gains over 4% on introduction of  two-tier saving bank interest rate structure

12:15 PM

At 12:15 pm, S&P BSE Sensex was trading at 32,438, up 128 points while the broader Nifty50 index was ruling at 10,043, up 29 points.

 

In broader markets, erased some gains to turn flat with BSE Midcap up 0.04% and BSE Smallcap up 0.2%.

12:08 PM

MERGER UPDATE

Max Financial Services (MFS), Max India and Max Life today confirmed that the proposed merger with HDFC Life has been called off. The exclusivity agreement with HDFC Life, valid till 31^st July 2017, will not be renewed

12:04 PM

Shares of public sector undertakings (PSU) banks were trading higher by upto 4%, recovering from their intra-day lows, after the state-owned banking giant State Bank of India (SBI) cut saving bank interest rates.

SBI rallied by 2.7% to Rs 307 on BSE after the bank introduced a two-tier saving bank interest rate from today, due to the decline in the rate of inflation and high real interest rates.

Click here for detailed report

11:45 AM

IIFL ON L&T:

 

LT’s Q1 FY18 results were marginally below our estimate due to lower margins in power, development projects and inventory write down in its shipbuilding subsidiary. Order inflow too was weaker than expected on account of lower orders from export market. However, domestic order inflow which has been subdued, registered robust growth of 12% yoy against 40% decline in international orders.

 

We believe it would be challenging task to achieve order inflow growth guidance as private ordering remains subdued and road projects are largely ordered out via hybrid model. We maintain our Accumulate rating on the stock with a target price of Rs 1,273

11:44 AM

EMKAY GLOBAL ON IDEA CELLULAR:

 

Akin to Bharti and Vodafone India, Idea reported flat qoq revenues while underlying subscriber addition and ARPU trend was divergent for Idea. Voice ARPU for Idea improved marginally while for Bharti it declined 3%qoq. Similarly, Data ARPU for Idea registered growth of 8.2% qoq while it decline 4% qoq for Bharti. 

 

Jio is expected to remain aggressive in grabbing market share. Leveraged balance sheet, sub-par return ratios, elevated capex and risk of IUC cut remains a drag. Higher rural subscriber penetration of Idea and lack of 4G presence across the circles makes it more vulnerable to Jio feature phone launch. Maintain REDUCE with revised price tarfer of Rs 74

11:41 AM

RELIANCE SECURITIES ON ITC:

 

ITC has been in focus over government’s flip flop on GST rates on cigarettes. Now that the issue is settled and the GST rates would be 8-9% higher than the pre-GST indirect tax incidence on cigarettes business. ITC has undertaken a weighted average price increase of 6-7% across most of its key brands.

 

Although this will have an adverse impact on volume growth, we expect the margins on cigarettes business to improve on the back of price hike. 

 

Expecting 9.9% revenue and 12.4% earnings CAGR through FY17-19E, we have a BUY recommendation on the stock with a SOTP-based Target Price of Rs336, which implies an upside of 16% from the current levels

11:37 AM

Banks recover

Nifty PSU Bank index erases early-morning losses to gain over 2% in the noon deals. The gains were led by SBI, Bank of Baroda, Punjab National Bank and Canara Bank.

Source: NSE

11:28 AM

Sugar stocks in focus

Shares of sugar companies were trading higher by up to 5% on the BSE on expectation of favourable outlook in FY2018, supported by the recent hike in import duty and a tight domestic stock situation.

Dwarikesh Sugar Industries, Uttam Sugar Mills, Avadh Sugar, Dhampur Sugar Mills, Simbhaoli Sugar and Thiru Arooran Sugars were up in the range of 4% to 5% on BSE.

 

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