MARKET WRAP: Sensex ends at new closing high of 37,337; ITC up 5% post Q1

The benchmark indices are trading at record high on Friday on strong quarterly results

The benchmark indices ended at record closing  high for the second straight session on Friday on strong quarterly results. The gains were led by index heavyweights like ITC,  RIL, and Hindalco.

The S&P BSE Sensex settled at a record high of 37,337, up 352 points, while the broader Nifty 50 index settled at a new high of 11,278, up 111 points.

In intra-day deals,  the S&P BSE Sensex hit a fresh all-time high of 37368.62 while the Nifty50 index touched its record high level of 11,283.40. 
 

Leading the gains is ITC, which has surged over 5 per cent on the BSE. Beating street estimates, diversified conglomerate ITC on Thursday posted a 10.07 per cent jump in its net profit at Rs 28.19 billion for the quarter ended June 30, 2018 with its total revenue, inclusive of other income, registered at Rs 112.78 billion.

Among other gainers, Reliance Industries was among the top contributors to the NSE index, up over 1.5 per cent ahead of its quarterly results later in the day. The oil-to-retail conglomerate will also report results of its telecom arm Reliance Jio.

Nifty Bank index also hit an all-time high, ending 0.8% higher for the day. IDFC Bank, Federal Bank, and Axis Bank were the top gainers in the pack, up between 2 per cent to 2.6 per cent

GLOBAL MARKETS

Global stocks rose on Friday as strong company earnings reports and an easing of transatlantic trade tensions on an agreement between the United States and Europe this week to try to cut trade barriers boosted investor confidence.

The MSCI All-Country World Index, which tracks shares in 47 countries, was up 0.1 per cent after the start of European trading.

European stocks also inched up in early trade and were set to end the week at six-week highs, helped by easing fears over US tariffs and good company results.

Chinese shares underperformed an uptick in Asian shares, with the main Shanghai index in the red for most of the day. Traders attributed this to a still unresolved standoff between the US and China on trade.

(with Reuters inputs)

4:06 PM

Market rundown by Vinod Nair, Head of Research, Geojit Financial Services:

 

Growth and earnings outlook is showing signs of pickup which elevated the market to a new high. On the global front, ECB kept the key rates on hold while signs of ease in trade tensions between US and EU added some confidence. Notably, mid cap also participated in the rally as worst of earnings seems to be over. However valuation remain on higher side as compared to large caps.

3:42 PM

Nifty FMCG index ends 2.37% higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
ITC	300.70	287.20	13.50	4.70
GODREJ INDS.	635.50	611.10	24.40	3.99
DABUR INDIA	385.25	373.30	11.95	3.20
UNITED SPIRITS	595.40	578.40	17.00	2.94
UNITED BREWERIES	1119.60	1094.80	24.80	2.27

3:38 PM

Nifty sectoral gainers of the day

3:36 PM

BSE Sensex: ITC, Tata Motors, Tata Steel among top gainers of the day, HUL top loser

3:32 PM

Market at close

 

The S&P BSE Sensex settled at a record high of 37,337, up 352 points, while the broader Nifty 50 index settled at a record of 11,278, up 111 points.

3:27 PM

RITES hits highest level since listing; stock zooms 20%

 

Shares of railways consultancy firm RITES has zoomed 20% to Rs 267, its highest level since listing on July 2, 2018. Thus far in the current week, the stock rallied 38% from Rs 194, as compared to 2.3% rise in the S&P BSE Sensex.

 

RITES, the first state-owned firm to hit the initial public offering (IPO) market in the current fiscal, was trading 44% higher against its issue price of Rs 185 a share. It touched a low of Rs 190 during intra-day deal on July 2. READ MORE

3:15 PM

KM Birla eyes US' Aleris, but he might have to climb the Trump wall first

 

Last year, the Trump administration blocked a Chinese company from buying an Ohio-based aluminum maker, Aleris, citing concerns about national security. Will President Trump and his advisers feel differently about an Indian company purchasing Aleris instead?

 

On Thursday, one of India’s biggest industrial conglomerates, the Aditya Birla Group, announced that its aluminum and copper subsidiary had struck a deal to buy Aleris for $2.6 billion, including the assumption of existing debt. READ MORE

3:01 PM

Westlife Development soars 17% on robust Q1 results

 

Westlife Development, owner of the Master Franchisee of McDonald’s restaurants in west and south India, rose 17% to Rs 408 on the BSE in the noon deal after the company reported a consolidated net profit of Rs 116 million in June quarter (Q1FY19). It had posted a net loss of Rs 27 million in the same quarter year ago.

 

Total operational revenues during the quarter under review grew 30% at Rs 3,417 million against Rs 2,625 million in the corresponding quarter of previous fiscal. READ MORE

2:45 PM

Zuckerberg faces new risks as scandal-hit Facebook nears a saturation point

 

After all the controversy Facebook Inc. has generated in recent months, it seemed almost inevitable that at some point, the social media giant would get what it had coming. A reckoning. Wednesday’s disappointing earnings report and Thursday’s historic 19 per cent stock drop appeared to be a fitting conclusion to an easy narrative.

 

But the story isn’t that simple. Yes, the privacy protections the company put in place after a series of scandals played a role in the dismal earnings. But the company’s bigger problem is that the main social network— the invention that made it a corporate behemoth—simply can’t grow much more. READ MORE

2:30 PM

Reporting intra-day trading losses could reduce your tax liability

 

The stock market has been an attractive investment option for the masses. Carrying out a one-off investment in stocks or trading in the stock market is preferred over other investments or trading options as it helps earn phenomenal returns. In fact, intra-day trading has gained much popularity of late -- not only among those who have taken this up full time, but also among small businessmen, salaried professionals, and retirees, among others. And one-off losses made in such trade do not deter them from moving on. In this article, we will discuss all about intra-day trading in stocks, their tax implications and reporting requirements. READ MORE

2:25 PM

MARKET COMMENT Lakshmi Iyer, CIO (Debt) & Head - Products, Kotak Mutual Fund on RBI policy

The August MPC decision could be a close call. The CPI for June was  lower than expected. Crude oil prices have been largely range-bound. There also seems uncertainty on how the global trade war could potentially unfold. In such a scenario, the MPC could afford to do a  'wait and watch’ at this juncture and consider more data points before a rate action.

There might not be much urgency in delivering back to back rate hikes when the policy stance is still neutral. From a market perspective, bond yields already seem to have discounted another rate hike and hence yields are already at elevated levels

2:16 PM

Steel makers uneasy over iron ore price surge as steel prices soften

 

The domestic prices of iron ore, excluding the rates prevailing in Karnataka, have jumped by 17 per cent for fines and 11 per cent for lumps up to July in the current fiscal in contrast to 5 per cent slide in steel (TMT bar) prices in the same period.

 

With the ongoing monsoon impacting construction activities and global trade war threatening to create a glut in the domestic market, the steel industry is keeping its fingers crossed on further increase in the domestic iron ore prices which may impact their margins. READ MORE

2:02 PM

Market Check

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	37256.70	36984.64	272.06	0.74
	15175.32	15059.90	115.42	0.77
	15923.99	15763.22	160.77	1.02
	16456.97	16306.02	150.95	0.93
	4361.33	4330.95	30.38	0.70

1:42 PM

Market outlook: Nifty50 index may be on course for the 11,400 level

 

The markets opened in positive territory on Thursday, with the Sensex breaching the 37,000 mark for the first time ever in early trade. On the National Stock Exchange (NSE), the Nifty50 index, too crossed its previous record high to scale a fresh high of 11,179.60 levels in intra-day trade.

 

We had stuck our neck out at the beginning of the month and said that the markets will reach a new high before the Independence Day. READ MORE

1:36 PM

INDEX WATCH

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	37255.53	36984.64	270.89	0.73
	15173.39	15059.90	113.49	0.75
	15920.95	15763.22	157.73	1.00
	16450.34	16306.02	144.32	0.89
	4361.04	4330.95	30.09	0.69