Nifty rebounds but fails to end above 9,800; broader markets shine, up 2%

Catch all that happened in the market here

3:48 PM

Analyst View

 

Anand James, Chief Market Strategist, Geojit Financial Services said: Value buying was visible after recent falls rendered prices cheaper, and the positive Asian markets gave further encouragement. But we believe, markets may be a bit circumspect about any more abrupt SEBI measures that may cull liquidity. With WPI breaking downtrend, RBI’s minutes on Wednesday could give us better insight on rate cut expectation.

 

3:46 PM

Earnings Impact

Avanti Feeds soared 20% to Rs 1,974, also its record high on BSE in intra-day trade, after the company reported stellar Q1 performance. The company’s consolidated net profit soared 204% year-on-year (Y-o-Y) to Rs 149 crore for the quarter ended June 30, 2017 (Q1FY18). It had reported a net profit of Rs 49.03 crore in the corresponding quarter last year.

3:43 PM

Shares of drug major Cipla ended 5% higher after the company reported 23.63% rise in consolidated net profit o Rs424.92 cror for the first quarter ended 30 June.

 

The company had posted a net profit of Rs343.70 crore for the corresponding period of the previous fiscal, Cipla said in a BSE filing.\

3:41 PM

Nifty Realty was the biggest sectoral gainers, up ver 5% for the day led by DLF, HDIL, Unitech and Phoenix.

DLF surged over 17% after the company said on Saturday that it was in the final stages of talks for a transaction involving its rental unit arm.

 

DLF had previously said it was in talks with Singapore sovereign wealth fund GIC to sell a 40% stake in its property rental unit. 

3:39 PM

Broader Markets

Broader markets outperformed the benchmark indices with BSE Midcap and BSE smallcap up 2% each

3:38 PM

Global Check

World stocks rose on Monday, attempting to recover after fears of a US-North Korea nuclear standoff drove them to the biggest weekly losses of 2017, while the dollar too rose off four-month lows it had hit against the yen.

 

European shares bounced after falling nearly 3% last week, with the pan-European STOXX 600 up 0.7% following on from a 0.9% jump in MSCI's index of Asia-Pacific shares outside Japan.

 

Those gains were led by bounces in Australia, Hong Kong and South Korea while MSCI's world index rose 0.2%.

3:37 PM

Nifty IT index lost 0.5% and was the biggest sectoral loswr for the day. HCL Tech, TCS, Wipro were the biggest laggards on the index

Source: NSE

3:34 PM

Top gainers and losers on BSE Sensex

Source: BSE

3:32 PM

Benchmark indices rebounded, to end over 0.5% higher on Monday, snapping a five-day losing run after weak US inflation data dampened prospects of a rate hike this year, lifting sentiment across global markets.

 

Back home, investors reacted to July Wholesale Price Index (WPI)-based inflation data, which surged to 1.8% from 0.9% reported in June. Consumer Price Index (CPI)-based inflation data will be released later in the day.  

 

The S&P BSE Sensex ended at 31,449, up 235 points while the broader Nifty50 index settled at 9,794, up 83 points.

3:21 PM

Earnings Impact

Tata Power gained 4% after the company's first-quarter profit more than doubled, helped by higher income from its core power generation business.

 

Profit came in at Rs 164 crore in the quarter ended June 30, compared with a profit of Rs 72.49 crore a year earlier.

 

3:12 PM

RCom rallies

Reliance Communications (RCOM) rallied 19% to Rs 24.65 on BSE in intra-day trade on the back of heavy volumes.

 

The trading volumes on the counter more than doubled with a combined 41.03 million shares, representing 1.6% of total equity of RCOM, changing hands on BSE and NSE so far.

 

Thus far in the calendar year 2017, the stock underperformed the market by falling 29% as compared to 17% rise in the S&P BSE Sensex till Friday, August 11, 2017.

3:07 PM

Oil check

Oil prices dipped on Monday as a slowdown in Chinese refining activity growth cast doubts over its crude demand outlook, while rising US shale output suggested supplies would likely remain high.

 

Brent crude futures, the international benchmark for oil prices, were at $51.92 per barrel at 0652 GMT, down 18 cents, or 0.4%, from their last close.

2:52 PM

Banks advance

Banks were among the top gainers, with the Nifty Bank index up 0.7% after losing 3.4% last week.

 

Housing Development Financial Corp and HDFC Bank advanced 2.6% and 1.1%, respectively, and were among the leading gainers.

2:31 PM

Earnings impact

State-run lender IDBI Bank fell after it posted a third straight quarterly loss on lower interest income and higher bad loans.

 

Net loss was Rs 853 crore in the three months ending June 30, compared with a profit of Rs 241 crore a year earlier, the Mumbai-based bank said on Monday. bit.ly/2uBF3DR

 

IDBI Bank had posted a loss of nearly Rs 3200 crore in the March quarter this year.

IDBI Bank

2:14 PM

Broader Markets

Broader markets outperformed the benchmark indices with BSE Midcap and BSE smallcap rising over 2% each

2:04 PM

Three NBFC stocks at attractive valuations

NBFCs remain notches ahead of the banks in terms of demonstrating strong growth

 

When banking channel credit growth remains anaemic, the performance of non-banking finance companies (NBFCs) is noteworthy. NBFCs remain notches ahead of the banks in terms of demonstrating strong growth.

For an investor, while the ‘me-too’ model of pure-play housing finance companies (HFCs) may limit the scope for incremental growth, NBFCs outside of this basket could offer higher returns and diversified growth. From this stand point, stocks such as Capital First, Cholamandalam Investment and Finance and L&T Finance offer uniqueness. 

Click for full report

1:45 PM

Britannia targets to boost distribution footprint, market share

Britannia is also looking at driving premiumisation through innovation and attain cost leadership

 

After facing initial GST hiccups, FMCG major Britannia is looking at increasing its distribution footprint and winning market share from local players.

 

The company, which witnessed de-stocking in trade channels due to migration to GST, said the new tax regime has brought a level playing field.

 

"Our key strategic focus area is to increase distribution footprint, grow rural and win (market) share from local players," Britannia said in a presentation to the analysts.

Click here  for full story

1:30 PM

Quick Heal falls

Quick Heal Technologies hit 52-week low of Rs 173, down 9% on BSE in intra-day trade after the company’s consolidated net losses more than doubled to Rs 11.3 crore in June quarter (Q1FY18), due to lower operational income. The company provides security software products and solutions had posted loss of Rs 5.47 crore in the same quarter last fiscal.

 

Operational revenue during the quarter under review declined by 36% to Rs 30.32 crore from Rs 47.55 crore in the corresponding quarter of previous fiscal.

1:15 PM

Markets check

 

At 1:15 pm, the Sensex was trading at 31,480, up 267 points, while the broader Nifty50 was ruling at 9,801, up 90 points. 

12:45 PM

Earnings impact

DLF soared 14% to Rs 176 on BSE in intra-day trade after the real estate developer reported a consolidated net profit of Rs 110 crore for the quarter ended June 2017 (Q1FY18). The company had posted profit of Rs 261 crore in the same quarter year quarter. The last year profit exceptional gain of Rs 329 crore, which include one-time profit of Rs 372 crore from DT cinema sales & Rs 43 crore Chennai IT park loss. 

12:27 PM

July WPI doubles to 1.8%

Wholesale Price Index in July rose 1.8% from a year earlier, after easing for four months, government data showed on Monday.

 

The rise compares with a 1.3% increase forecast by economists in a Reuters poll and a provisional 0.9% rise in June - the slowest pace since July 2016. Wholesale food prices in July rose 2.12% on year, compared with a 1.25% fall a month earlier, the data showed.

11:59 AM

Cipla top index gainer

Cipla surged 6% to Rs 575 on BSE after the company recorded EBITDA (earnings before interest, taxation, depreciation and amortization) margin expansion rose 160 bps to 18.3% in June quarter (Q1FY18), driven by strong focus on enhancing operational efficiency and control on spends. The stock was the top gainers on Sensex and Nifty. READ MORE

11:30 AM

Buzzing stock

 

Indraprastha Gas hits record high on good Q1 results; 1:5 stock split. READ FULL REPORT HERE

11:05 AM

Markets check

 

At 11:00 am, the Sensex was trading at 31,433, up 219 points, while the broader Nifty50 was ruling at 9,782, up 71 points. 

10:43 AM

Buzzing stocks

Shares of Parsvnath Developers, Kavit Industries, Pincon Spirit and Signet Industries are locked in their respective lower circuits as trading resumed in these stocks after a gap of one week. Besides these four, Kalpana Industries and SQS India too plunged 20% in early morning trade on the BSE. CLICK HERE FOR FULL REPORT

10:32 AM

Edelweiss Securities on Sun Pharma

 

We envisage Sun TV to be beneficiary of Phase III & IV digitisation. Digitisation in Tamil Nadu is a key stock catalyst. Though the stock corrected 17.7% in past 2 months due to dip in Sun TV’s market share owing to intense competition from Star Vijay (has expanded market with non-fiction content), we believe this is temporary as Sun TV’s viewership is intact. At CMP, the stock trades at 23.1x FY18E and 20.7x FY19E EPS. We maintain ’BUY/SO’ with TP of Rs 1,024 (30x FY19E). 

10:13 AM

Sectoral trend

Nifty PSU Bank sole sectoral loser, down 0.2%. 

Source: NSE

9:51 AM

Earnings impact

SpiceJet added over 4% to Rs 120 after the airline recorded a profit of Rs 175.23 crore in the quarter ended June — a jump of 18% from Rs 149.03 crore in the corresponding period last year. The airline attributed it to a healthy passenger load and stronger yield. Average fare for the airline increased by nine per cent to Rs 3,943 from Rs 3,601 during the same period last year. 

9:26 AM

Earnings impact

Sun Pharmaceutical slipped over 3% to Rs 433 after the drug major reported a consolidated net loss of Rs 425 crore for the quarter ended June 30, mainly due to one-time exceptional item. The company had posted a net profit after taxes, share of profit/loss of associates, joint ventures and non-controlling interests of Rs 2,033.71 crore for the same period a year ago. CLICK HERE FOR DETAILED EARNINGS 

9:22 AM

Top Sensex gainers and losers

Source: BSE