Shares end with strong gains

The Nifty snapped four-day losing trend on Thursday amid broad based buying support, backed by positive global cues. Shares in global stock markets advanced after Federal Reserve Chairman Jerome Powell hinted at a possible rate cut later this month.

The barometer index, the S&P BSE Sensex, rose 266.07 points or 0.69% to 38,823.11, as per the provisional closing data. The Nifty 50 index rose 84 points or 0.73% to 11,582.90, as per the provisional closing data.

The S&P BSE Mid-Cap index was up 0.56%. The S&P BSE Small-Cap index was up 0.41%.

The market breadth was positive. On the BSE, 1245 shares rose and 1193 shares fell. A total of 158 shares were unchanged.

Among index pivotals, HDFC (up 1.58%), HDFC Bank (up 1.03%) and Reliance Industries (up 0.44%) gained.

JSW Steel (up 4.28%), IndusInd Bank (up 3.98%) advanced.

Yes Bank (down 1.08%) and Indian Oil Corporation (down 0.81%) declined.

Media stocks were in demand. Zee Entertainment Enterprises (up 7.54%), Balaji Telefilms (up 4.97%), Siti Networks (up 3.7%), Zee Media Corporation (up 3.25%), Prime Focus (up 2.7%), Sun TV Network (up 1.85%), TV18 Broadcast (up 1.56%) and Network 18 Media Investments (up 0.61%) advanced. Eros International Media (down 4.46%), New Delhi Television (down 1.44%), and TV Today Network (down 0.27%) declined.

Dish TV was up 15.74% to Rs 30.15 after after CARE Ratings revised rating on the company's bank facilities to CARE A3+ from CARE A3.

Pharma stocks gained. Cadila Healthcare (up 2.58%), Dr Reddy's Laboratories (up 2.43%), Sun Pharmaceuticals Industries (up 1.65%), Cipla (up 1.43%), IPCA Laboratories (up 0.51%) and Alkem Laboratories (up 0.46%) edged higher. GlaxoSmithKline Pharmaceuticals (down 1.95%), Lupin (down 0.89%), Divi's Laboratories (down 0.79%) and Wockhardt (down 0.18%) traded lower.

Aurobindo Pharma was up 1.05% to Rs 603.7 after the company said it launched Cinacalcet Hydrochloride tablets in the US market in accordance with the terms of settlement agreement with Amgen Inc. The drug is a generic version of Amgen Inc's Sensipar tablets. Cinacalcet Hydrochloride tablets had an annual sale of approximately $1,449 million for the twelve months ending May 2019 as per IQVIA.

The drug is indicated for the treatment of secondary hyperparathyroidism (HPT) in adult patients with chronic kidney disease (CKO) on dialysis; hypercalcemia in adult patients with parathyroid carcinoma; and severe hypercalcemia in adult patients with primary HPT who are unable to undergo parathyroidectomy.

Piramal Enterprises was up 1.24% to Rs 1961.65 .The company announced that a special committee of the board approved issuing 9.5% secured, rated, unlisted, redeemable non-convertible debentures on private placement basis up to Rs 1,500 crore each having a face value of Rs 10 lakh. The tenure of the instrument is six months. The date for redemption is set at 12 January 2020. The instrument received a credit rating of 'A1+' from CRISIL.

Glenmark Pharmaceuticals rose 0.92% to Rs 449.6 and Torrent Pharmaceuticals rose 0.1% to Rs 1,549 after both the companies signed a licensing agreement for co-marketing of Remogliflozin Etabonate in India. Glenmark Pharmaceuticals and Torrent Pharmaceuticals have entered into a non‐exclusive sub‐licensing agreement to co‐market Sodium Glucose Co‐Transporter‐2 (SGLT2) inhibitor, Remogliflozin Etabonate (Remogliflozin) in India.

Under the terms of the agreement, Glenmark Pharmaceuticals will receive an upfront payment, license fees and royalties for the non‐exclusive sub‐license rights from Torrent Pharmaceuticals. Glenmark Pharmaceuticals will manufacture and supply Remogliflozin while Torrent Pharmaceuticals will market the drug under its own trademark 'Zucator' in India. Remogliflozin is indicated in the treatment of Type 2 Diabetes Mellitus in adults.

Auto stocks witnessed buying. Hero MotoCorp (up 4.62%), Mahindra and Mahindra (up 1.99%), Escorts (up 1.79%), Maruti Suzuki India (up 1.33%), Bajaj Auto (up 1.15%), Eicher Motors (up 1.07%) and Ashok Leyland (up 0.41%) advanced.

Tata Motors was up 3.24% to Rs 156.3. The company announced during market hours today, 11 July 2019 that global wholesales in June 2019, including Jaguar Land Rover, were at 95,503 units, lower by 5%, as compared to June 2018. The company added that global wholesales of all Tata Motors' commercial vehicles and Tata Daewoo range in June 2019 were at 38,846 units, lower by 12%, over June 2018. It said that global wholesales of all passenger vehicles in June 2019 were at 56,657 units, grew by 1%, compared to June 2018.

TVS Motor Company was up 3.22% to Rs 431.15 after the company said it launched 100cc economy motorcycle, TVS Sport, in Sri Lanka. TVS Motor Company said that the mileage-efficient motorcycle boasts of new generation graphics and style. "In Sri Lanka, where two-wheeler mobility is on a rise, TVS Sport is the ideal motorcycle to traverse long distance with excellent fuel efficiency," R. Dilip, senior vice president, international business, TVS Motor Company, said.

Reliance Power was up 5.26% to Rs 4.2 after the company reported that company's Samalkot project has successfully recasted Rs 2430 crore loan from US-EXIM. The company further added that it is in advanced stages of development of Bangladesh project and relocating Samalkot modules to Bangladesh.

Reliance Infrastructure was up 10.87% to Rs 51 after the company announced that an inter-creditor agreement has been signed among the company's 16 lenders. The agreement achieves standstill for 180 days and the company plans to implement resolution plan well before 180 days by monetising its assets.

Bharat Forge was up 4.91% to Rs 464.95 after the company said that its subsidiary has received a $100 million contract from RAFAEL Advanced Defense Systems. The company announced that Kalyani Rafael Advanced Systems (KRAS), its step-down subsidiary, has received the contract for manufacturing 1,000 BARAK-8 Medium Range Surface Air Missiles' kits, which in turn would be supplied to Bharat Dynamics (BDL) for further integration. KRAS is a 49:51 ratio joint venture between RAFAEL Advanced Defense Systems and Kalyani Strategic Systems (KSSL), with the Indian partner holding 51%. KSSL is a 51% subsidiary of Bharat Forge.

Cox & Kings hit a lower circuit limit of 5% at Rs 23.20 after the company defaulted on unsecured commercial papers worth Rs 125 crore. The company defaulted on 9 July 2019. Further, the company's issuer rating was revised to 'CARE C' from 'CARE BB', long term facilities were revised to 'CARE C' from 'CARE BB' and non-convertible debenture issue was rated 'CARE D' from 'CARE BB'. Meanwhile, Cox & Kings has maintained a rating of 'CARE D' in commercial paper issue of Rs 375 crore and 'CARE A4' in commercial paper issue worth Rs 1,685 crore.

Premier Explosives was up 4.84% to Rs 192.9 after the company said it won a Rs 14.99 crore order from Bharat Dynamics. The order is for supplying solid propellants for medium range surface to air missile (MRSAM) to be executed within a period of 14 months. This is not a material supply order.

Shares of IT companies were mixed. Oracle Financial Services Software (up 4.43%), Mphasis (up 2.38%), Infosys (up 0.71%), MindTree (up 0.40%), Wipro (up 0.32%) and HCL Technologies (up 0.17%) gained. and gained. Tech Mahindra (down 1.27%), Persistent Systems (down 1%), Hexaware Technologies (down 0.53%) and TCS (down 0.34%) declined.

According to the latest forecast by Gartner, Inc., worldwide IT spending is projected to total $3.74 trillion in 2019, an increase of 0.6% from 2018. This is slightly down from the previous quarter's forecast of 1.1% growth.

Despite uncertainty fueled by recession rumors, Brexit, trade wars and tariffs, IT spending is expected to remain flat in 2019, said John-David Lovelock, research vice president at Gartner. While there is great variation in growth rates at the country level, virtually all countries tracked by Gartner will see growth in 2019. Despite the ongoing tariff war, North America IT spending is forecast to grow 3.7% in 2019 and IT spending in China is expected to grow 2.8%.

Although an economic downturn is not the likely scenario for either 2019 or 2020, the risk is currently high enough to warrant preparation and planning. Technology general managers and product managers should plan out product mix and operational models that will optimally position product portfolios in a downturn should one occur, said John-David Lovelock, Research Vice President, Gartner Inc.

On domestic macro front, an RBI working group has suggested calibrated extension of forex market trading hours from 9:00 IST to 21:00 IST as it would help in gauging demand and potential benefits. The report further noted that it is operationally easier to extend timings on exchanges as they are already offering extended market hours for commodity and derivative segment.

India's total outward foreign direct investment (OFDI) for June 2019 stood at $820.36 million in June 2019 over $2292.52 million in June 2018 and $ 1565.48 million in May 2019.

Overseas, European markets were trading higher while Asian markets closed on a positive note after Federal Reserve Chair Jerome Powell reinforced prospects of a US interest rate cut later this month.

US stocks rose on Wednesday with the Nasdaq Composite index closing at a record high after Federal Reserve chairman Jerome Powell indicated interest rates cuts may be imminent in the face of some weakening economic data.

In testimony to a congressional committee, Powell noted that while the U.S. jobs market remains robust and consumer spending appears set to rebound, business investment has slowed considerably, along with housing investment and manufacturing output.

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