MARKET WRAP: Sensex ends at record high of 36,985; hits 37k in intraday

Nifty, too, hits a record 11,185.85 in intraday trade before settling at 11,167 levels. SBI ralies over 6%.

The benchmark indices ended at their record highs on Thursday on expiry of July Futures and Options (F&O) contracts.

The S&P BSE Sensex that breached 37,000 mark for the first time ever to hit an intra-day high of 37,027 levels, ended a tad lower at 36,985 levels, up 126 points. The broader Nifty50 index settled at 11,167, up 35 points. The 50-share index had surged to a high of 11,185 levels in intra-day deals.

MARKET OUTLOOK 

Analysts at HDFC Securities expect the Nifty to move higher in the August series. Investors, who were shunning small-cap stocks on fears that the Index may fall, they say, are now likely to be more confident of the moves of the broader indices and start investing in the small-and mid-cap stocks.

"Once the Nifty closes above the 11,171 mark, expect this to become the new support level for the index. The next resistance could come in at 11395 – 11,400 levels, a 100% extension level of swing seen from 9,952 (bottom of March 23) to 10,929 (top of May 15) and from 10,929 to 10,417 (bottom of May 23)," said V K Sharma, Head Private Client Group & Capital Market Strategy at HDFC Securities in an exclusive note. READ MORE HERE

MARUTI Q1FY19 DISAPPOINTS

Among individual stocks, Maruti Suzuki India (MSIL) closed around 4% lower to at Rs 9,390 on the NSE, after the company reported lower-than-expected 26.9% growth in net profit at Rs 19.75 billion in June quarter (Q1FY19). The country’s largest car maker had profit of Rs 15.56 billion in year ago quarter.

GLOBAL MARKETS

Asian stocks edged higher on Thursday, taking comfort from gains on Wall Street after US President Donald Trump and European Commission President Jean-Claude Juncker agreed to work towards eliminating trade barriers on industrial goods.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2 per cent while Japan's Nikkei stock index was 0.2 per cent lower.

(with Reuters inputs)

5:02 PM

MARKET COMMENT Rahul Mishra, AVP (Derivatives), Emkay Global

This is the first expiry where unexpired future contracts will be physically settled (list of 45 such stocks is provided). Average rollover this time in these stocks is higher compared to their historical level (on an average 78% of the positions have been rolled compared to 52% last month). As a result of this Market wide roll over is also higher compared to historical level (61% v/s 53% last month). Nifty made a new intraday high of 11185 and we saw good buying on July Expiry

3:42 PM

Nifty PSU Bank settles 5.45 per cent higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
BANK OF INDIA	95.60	88.20	7.40	8.39
CANARA BANK	278.90	258.95	19.95	7.70
INDIAN BANK	354.25	331.90	22.35	6.73
SYNDICATE BANK	43.20	40.80	2.40	5.88
ST BK OF INDIA	287.70	271.85	15.85	5.83

3:39 PM

Nifty sectoral gainers and losers of the day

3:37 PM

BSE Sensex: SBI, ICICI Bank, Powergrid among top gainers of the day, Maruti top loser

3:34 PM

Market at close

The S&P BSE Sensex that breached 37,000 mark for the first time ever to hit an intra-day high of 37,027 levels, ended a tad lower at 36,985 levels, up 126 points. The broader Nifty50 index settled at 11,167, up 35 points. The 50-share index had surged to a high of 11,185 levels in intra-day deals.

3:16 PM

YES Bank falls 6% on profit booking post Q1 results

Shares of YES Bank have slipped 6% to Rs 359 per share on the BSE on profit bookings after the bank reported 30.5% year on year (yoy) jumped in net profit at Rs 12.6 billion in June quarter (Q1FY19) on the back of healthy growth in net interest income (NII) & other income. READ MORE

3:04 PM

Elara Capital on Sanofi India

We marginally increase our EPS by 4.5% in CY18E and by 2.2% in CY19E. At the CMP, the stock is trading at a valuation of 17x CY19E EV/EBITDA, which is at a discount to other MNC peers. Given the recent run-up in the stock price, we revise our rating to Accumulate from Buy with a new target price of Rs 6,130 from Rs 6,000 on 32x (unchanged) CY19E P/E. Any regulatory headwinds to drug pricing in domestic market is key risk to our call.

2:57 PM

COMMODITY WATCH: Sugar

Backed by Government measures, domestic sugar prices have recovered to around Rs. 33,500/MT (ex-mill UP) from a low of Rs. 26,500/MT in May. Recent Government measures such as creation of 3 million MT buffer stock and fixing of minimum selling price (MSP) for sugar at Rs. 29,000/MT, has helped the sugar industry.

However, as per an ICRA note, the sustainability of the same is uncertain, given the likelihood of another year of bumper production in SY2018-19. Further, the hike in FRP is likely to result in margin pressures and provide further impetus to farmers to sow sugarcane, which is likely to exacerbate the oversupply conditions

2:46 PM

Bank stocks trade mixed

COMPANY NAME	LATEST	HIGH	LOW	CHG ( )	CHG(%)
ICICI BANK	285.05	286.15	273.20	10.45	3.81
PUNJAB NATL.BANK	80.70	81.70	79.75	1.45	1.83
ST BK OF INDIA	283.80	285.75	273.55	12.35	4.55
KARUR VYSYA BANK	98.00	99.85	96.65	-1.00	-1.01
YES BANK	362.85	386.35	358.75	-20.60	-5.37

2:44 PM

TOP LOSERS ON THE BSE TODAY

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
INTELLECT DESIGN	193.05	-16.85	-8.03	142382
JAGRAN PRAKASHAN	125.00	-10.75	-7.92	50764
SECURITY & INTEL	1060.05	-76.70	-6.75	6277
YES BANK	361.10	-22.35	-5.83	1393947
AVANTI FEEDS	433.25	-26.15	-5.69	79263

2:43 PM

Centrum on Glaxo SmithKline Pharma

We maintain Sell rating on GlaxoSmithKline Pharma (GSK) and revise our TP to Rs1,900 (earlier Rs1,650) based on 24x March’20E EPS of Rs79.1. GSK’s Q1FY18 results were in-line with our estimates. GSK revenue grew by 21%YoY, EBIDTA margin improved 1,590bps to 19.1% and net profit before EO item grew 596% YoY on a lower base.

GSK’s major brands grew by high single digit to double digit during the quarter. That said, the company has a strong presence in the vaccines segment and launched Infanrix Hexa during Q1FY19

2:30 PM

Crowd thins at the last place to trade shares of RSE-listed companies

The herd is thinning at the last place you could buy and sell shares of companies that were previously listed only on regional stock exchanges (RSEs). The latter began to shut down over the past few years. By now, firms transferred from there to the dissemination board of established exchanges have seen a number of exits. READ MORE

2:13 PM

Macro economy gives confusing signals to MPC on policy rate front

The Monetary Policy Committee (MPC) will gauge weakening macroeconomic parameters like surging inflation, subdued industrial growth, and widening trade deficit to take a call on the policy rate in its three-day meeting commencing July 30. READ MORE

2:00 PM

Kesoram Industries refutes allegation of short-changing public shareholders

Basant Kumar Birla-promoted Kesoram Industries on Thursday refuted all allegations of "short-changing" public shareholders and listed the steps taken by the management to save the company from becoming sick or potentially sick over the past few years. READ MORE

1:44 PM

Maruti Suzuki dips 4% post Q1 results

Shares of Maruti Suzuki India (MSIL) have slipped 4% to Rs 9,391 per share on the BSE after the company reported lower-than-expected 26.9% growth in net profit at Rs 19.75 billion in June quarter (Q1FY19). The country’s largest car maker had profit of Rs 15.56 billion in year ago quarter. READ MORE