MARKET WRAP: Sensex ends 261 pts up, Nifty at 10,772; Banks, RIL rally

Nifty Bank index ended over 1% higher led by a rise in the shares of IDFC Bank and IndusInd Bank. Reliance Industries rose 2.3% on the National Stock Exchange.

Markets ended higher on Wednesday despite mixed cues from their Asian peers amid ongoing trade war tensions between the US-China.

The S&P BSE Sensex ended at 35,547, up 261 points while the broader Nifty50 index settled at 10,772, up 62 points.

Financials led the gains on the indexes, with HDFC Bank and HDFC rising for a second straight session. Oil-to-telecom conglomerate Reliance Industries Ltd (RIL) and Vedanta Ltd, the local unit of diversified mining group Vedanta Resources Plc, were the top percentage gainers on the BSE and NSE.

MINUTES OF THE MEETING

Investors were also waiting for the minutes of RBI's Monetary Policy Committee meeting, which is due after market hours. The RBI raised interest rates by a quarter percentage point at its last meeting, citing rising inflation risks. The central bank said on Tuesday it would buy five government bonds worth up to Rs 100 billion under its open market purchase on Thursday.

GLOBAL MARKETS

Stocks in Asia rebounded from recent losses on Wednesday as investors sought bargains, a day after the specter of a US-China trade war rattled global markets, but significant uncertainty around the trade outlook is capping gains.

Japan's Nikkei was 0.1 per cent higher after earlier falling into negative territory. South Korea's KOSPI rose 1 per cent. In China, the Shanghai Composite Index was down 0.3 per cent in early trade, a day after falling 3.8 per cent. China's blue-chip CSI300 index was 0.2 per cent lower after briefly flirting with gains, and the Shenzhen Composite Index was up 0.1 per cent.

BUSINESS SENTIMENT SURVEY

Business confidence among Asian companies slipped for the first time in three quarters, on mounting worries that US President Donald Trump's protectionist policies would trigger tit-for-tat reprisals and undermine the global trading system. 

The Thomson Reuters/INSEAD Asian Business Sentiment Index, representing a six-month outlook from 61 firms, fell to 74 in the second quarter from a seven-year high of 79 in the prior three months. The survey was conducted over June 1-15. While a reading above 50 indicates a positive outlook, this is the first time the number has dropped since September 2017

(with Reuters inputs)

3:44 PM

RIL rose 2.32% on the NSE. Stock quote:

3:40 PM

Nifty Bank index ended 1.11% higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN()	GAIN(%)
INDUSIND BANK	1974.00	1931.50	42.50	2.20
IDFC BANK	42.05	41.15	0.90	2.19
KOTAK MAH. BANK	1326.00	1303.25	22.75	1.75
HDFC BANK	2056.00	2023.50	32.50	1.61
YES BANK	335.50	330.90	4.60	1.39

3:37 PM

Nifty sectoral gainers and losers of the day

3:34 PM

BSE Sensex: RIL, IndusInd Bank among top gainers of the day, Coal India top loser

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 35,547, up 261 points while the broader Nifty50 index settled at 10,772, up 62 points.

3:17 PM

Wheels India rallies 30% in two days as company mulls bonus issue plan

Shares of Wheels India hit a new high of Rs 2,690 per share, rising 11% from its previous close. The stock has surged 30% in past two trading sessions after the company announced that its board will consider a bonus issue proposal in their forthcoming board meeting on Friday, June 22, 2018. READ MORE

2:59 PM

Infra, realty firms face refinancing test of Rs 3-4 trillion: Ind-Ra

A number of companies in infrastructure and real estate sectors run the highest risk of not getting refinancing on their working capital and other loans, according to India Ratings and Research (Ind-Ra).

 

These companies are lower in the investment grade ratings, whereas their debt on books is also relatively high. Entities rated ‘BBB’ and below historically have faced challenges in raising funds. READ MORE

2:44 PM

Fuel prices to fall? Tough OPEC talks likely in Vienna on hiking oil output

OPEC ministers arrived in Vienna on Wednesday for crunch talks on whether to reverse a landmark pact curbing oil output, with Iran pushing back against Saudi and Russian calls to ramp up production again. 

 

The upcoming June 22-23 meetings of OPEC and non-OPEC energy ministers are set to be the most contentious in a while, with several countries bristling at the thought of reversing a deal that has been in place for 18 months and helped lift oil prices to multi-year highs. READ MORE

2:27 PM

Mahindra Lifespace, Mahindra Logistics, Mahindra CIE hit 52-week high

Shares of Mahindra Group were in focus with three companies - Mahindra Lifespace Developers, Mahindra Logistics, Mahindra CIE Automotive hit their respective 52-week highs on the BSE in intra-day trade on Wednesday. READ MORE

2:14 PM

FedEx orders Boeing freighters for $6.6 billion

FedEx Express, a unit of package delivery company FedEx Corp , has ordered 24 medium and large freighters from Boeing Co , the world's biggest planemaker said on Tuesday, as e-commerce demand boosts air freight business. READ MORE
 

1:55 PM

Morgan Stanley on Asian markets

We make further significant cuts to our index targets as macro pressure points build materially. We see downside from here for all our coverage markets near term with the Hang Seng particularly at risk.
 

Our new base case Target Prices imply 3% to 8% downside from current levels and that from the late Jan peaks, EM, HSCEI and CSI 300 should all enter bear market territory (drawdown > 20%) while Hang Seng, Topix, APxJ and MSCI China come close. We continue to favour MSCI China over MSCI EM, stay neutral EM versus Japan, are now also neutral CSI 300 versus MSCI China (previously preferred CSI 300) and neutral MSCI EM versus MSCI APxJ (previously preferred EM).

1:43 PM

MARKET CHECK

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,495.76	+209.02	+0.59
S&P BSE SENSEX 50	11,275.02	+55.18	+0.49
S&P BSE SENSEX Next 50	32,562.73	+23.39	+0.07
S&P BSE 100	11,061.88	+47.24	+0.43
S&P BSE Bharat 22 Index	3,425.33	-19.83	-0.58

1:43 PM

STOCK VIEW Bombay Burmah Trading Corp (BBTC)

Assuming 49% discount (which is at par to the industry average of around 49%), to the market value of investments it holds in Britannia and Bombay Dyeing, we arrive at a revised target price of around Rs.2,700 in the next 2-3 years for BBTC. 

 

Risk to View: Only possible risk to our view is if there is any possible governance issue in terms of divestment of holdings in Britannia in favour of any promoters or other Group entities. However, considering the track record of promoters and also the India’s regulatory environment, we firmly believe that such risk is too low.

(Source: Equinomics Research)

1:40 PM

GLOBAL MARKETS Asian stocks pick up steam as hopes of policy support lift China

Asian stock markets picked up steam in afternoon trade on Wednesday after a wobbly morning session, highlighting the lingering anxiety and uncertainty surrounding a heated trade dispute between China and the United States. S&P 500 futures turned higher, rising 0.3 percent and pointing to possible gains on Wall Street after major U.S. indexes closed lower Tuesday READ MORE HERE

1:24 PM

Centrum on Exide

We initiate coverage on Exide Industries (EXIDE) with BUY rating and target price of Rs 322. Our exhaustive channel check with 125+ dealers pan India across the company’s three major brands (Exide, SF Sonic and Dynex) indicates the management’s significant efforts to address ground level issues in the replacement market (which is critical for overall demand and remains the major revenue and profitability driver).

The company’s efforts have translated into positive material difference and a pick-up in momentum across the brands. Further, the meaningful transition expected in commercial vehicle segment towards organized players post GST implementation will prove beneficial for EXIDE