MARKET WRAP: Banks push Sensex 277 pts higher; RIL up 2%, Infy gains 1%

Benchmark indices rose on Monday with heavyweights ASian Paints and Reliance Industries driving the indices highe

Benchmark indices ended higher on Monday with Nifty50 index settling above its crucial  10,850 levels, tracking gains in Asian peers after favourable US jobs data boosted risk appetite, with heavyweights Asian Paints and Reliance Industries (RIL) driving the indices higher.

The S&P BSE Sensex ended at 35,935, up 277 points while the broader Nifty50 index settled at 10,853, up 80 points.

Among sectoral indices Nifty Bank, Nifty PSU Banks and Nifty Pvt Bank indices ended 1% higher each with Federal Bank, YES Bank, RBL Bank and Axis Bank as top gainers in the pack. Nifty Pharma and Nifty Metal indices also ended over 1% higher.

Asian Paints, YES Bank, Vedanta and RIL are some of the top gainers on the S&P BSE Sensex that moved up 2 per cent to 3 per cent. Meanwhile, TCS was the top loser on S&P BSE Sensex, ending over 1% lower ahead of its Q1FY19 results due on Tuesday.

NCLT VERDICT ON TATA-MISTRY

The National Company Law Tribunal (NCLT) on Monday dismissed Cyrus Mistry’s plea against his ouster as the chairman of the Tata Sons and allegations of mismanagement in the company, TV news channels reported.

NCLT said Mistry openly went against the board of directors, according to the reports. NCLT also ruled the board was competent to remove an executive chairman.

QUARTERLY EARNINGS AND ECONOMIC DATA

The June quarter earnings season will kick off this week and IT major Tata Consultancy Services (TCS) is likely to be the first bluechip company to come out with its June quarter result on Tuesday, July 10, 2018. Other major companies like Infosys, IndusInd Bank and Bajaj Corp are also expected to announce their June quarter results this week.

Among key economic data, India's Consumer Price Index (CPI), Index of Industrial Production (IIP) and trade data are likely to be released on Thursday, July 12, 2018.

GLOBAL MARKETS

Asian share markets rallied on Monday as favorable US jobs data whetted risk appetites, while sterling slipped after two members of the British government resigned over Brexit and put the future of Prime Minister Theresa May in doubt.

The Japan's Nikkei moved up 1.4 per cent on Monday while, MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 1.1 per cent.

(with wire inputs)
 

3:40 PM

Nifty PSU Bank index ends 1.55 per cent higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN()	GAIN(%)
SYNDICATE BANK	42.05	40.65	1.40	3.44
BANK OF INDIA	89.30	86.65	2.65	3.06
INDIAN BANK	348.50	342.55	5.95	1.74
ST BK OF INDIA	261.30	257.20	4.10	1.59
BANK OF BARODA	117.05	115.55	1.50	1.30

3:37 PM

Nifty sectoral performers of the day

3:35 PM

BSE Sensex: Yes Bank, Asian Paints, Reliance Industries among top gainers of the day

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 35,935, up 277 points while the broader Nifty50 index settled at 10,853, up 80 points.

3:25 PM

Auto, IT, consumption stocks lead in Sensex 1,063-point rally since June 5

 

Shares of automobiles, information technology (IT), private banks and consumption related companies have led to an over 1,000 points rally in the S&P BSE Sensex since June 5.

 

Maruti Suzuki India and Bajaj Auto from automobiles, Tata Consultancy Services (TCS) and Infosys from IT, YES Bank and Kotak Mahindra Bank and Hindustan Unilever (HUL) and Asian Paints from consumption sector have outperformed the Sensex by gaining 6% to 9% during this period. READ MORE

3:22 PM

COMMENT Q1FY19 Result expectations from Crisil Research

Growth in corporate revenue – excluding banking, financial services, insurance, and oil companies – is expected to print at a 12-quarter high of 12.8% on-year for the first quarter of fiscal 2019, CRISIL Research’s analysis of ~350 companies, which account for 50% of the market capitalisation (excluding banking, financial services, insurance, and oil companies) of the National Stock Exchange, indicates.

It would be the third consecutive quarter of double-digit growth. While the earlier two quarters had benefited from low-base effect following demonetisation in the corresponding year-ago period, this quarter will reaffirm a sustained pickup in demand in most consumption-linked sectors.

 

3:15 PM

Cyrus Mistry to appeal NCLT order dismissing his plea against Tata Sons

 

Ousted Tata Sons chairman Cyrus Mistry on Monday said he would appeal against the order of the National Company Law Tribunal (NCLT) that dismissed pleas challenging his removal.

 

A statement from Mistry's office described the NCLT, Mumbai, ruling as "disappointing although not surprising".

 

"We will continue to strive for ensuring good governance and protection of interests of minority shareholders and all stakeholders in Tata Sons from the wilful brute rule of the majority," the statement said. READ MORE

3:05 PM

New rules, trade war push some China funds to struggle for survival

 

It's already been a harsh year for Chinese funds, hit by new rules aimed at reining in debt in the country's financial system. Now, the sell-off in China stocks induced by trade war anxiety further threatens their health and for some, their survival.

 

Case in point: private fund house Nanjing Hu Yang Investment Co has seen its assets under management halve to 50 million yuan ($7.5 million) over the past year on redemptions and investment losses. READ MORE

2:55 PM

Sensex heat map

2:45 PM

Fund-raising via IPOs almost doubles in H1 2018: 18 firms raise Rs 236 bn

 

In a blockbuster performance, as many as 18 companies have raised a staggering Rs 236.7 billion through initial public offerings in the first half of this year, almost double from the year-ago period.

 

Moreover, the outlook appears to be bullish for the remaining part of 2018 as nearly 50 companies, including HDFC Mutual Fund, Lodha Developers and Rail Vikas Nigam are expected to launch their initial share-sale offers in the coming months. READ MORE

2:30 PM

WEB EXCLUSIVE Sectoral outlook for Q1FY19: Which are the five sectors to watch out for?

 

The upcoming results season of the first quarter in the current financial year 2018-19 (Q1FY19) has become more interesting because it is coming at the back of two years of sagging earnings growth. Will the market excuse another year of postponement in earnings recovery? Or will earnings growth finally begin to kick in at an aggregate level? Remember, the base quarter last year had a lot of business volume suppression owing to the goods and service tax (GST) transition. So it is only likely that we may see significant growth this time around in several sectors. 

 

However, this may still not ignite full-fledged hopes of earnings recovery as GST related restocking will kick up the base in the coming quarter. READ MORE

2:15 PM

Page Ind rallies 20% in less than one month after Jockey extends license

Shares of Page Industries hit a new high of Rs 29,277 per share, rising 3% and extending their gains in the past four weeks on the BSE after the company on June 12, 2018 announced extension of license agreement with Jockey International till December 31, 2040. READ MORE

2:00 PM

Market Check

 

S&P BSE Sensex	35,943.58		0.80%
Nifty 50	10,850.45		0.72%
S&P BSE 200	4,667.76		0.83%
Nifty 500	9,270.60		0.83%
S&P BSE Mid-Cap	15,574.91		1.19%
S&P BSE Small-Cap	16,280.92		1.38%

1:45 PM

Shriram group may merge two of its listed non-banking finance companies

 

Shriram group, the Rs 1,000-billion financial conglomerate, may consider merging two of its listed non-banking finance companies — Shriram Transport Finance Company (STFC) and Shriram City Union Finance (SCUF) — to pave the way for listing Shriram Capital, the holding company of the group’s financial businesses.

 

Talks between the group, now headed by billionaire Ajay Piramal, and IDFC Group, on a merger were called off last year after the two sides failed to agree on a swap ratio. READ MORE

1:31 PM

I-T sells Cairn's $216-mn shares in Vedanta over retrospective tax dues

Cairn Energy said on Monday it would write down the value of its investment in Vedanta Ltd after Indian tax authorities sold $216 million worth of its shares in the Indian mining company in a dispute over retrospective tax dues.

 

Cairn said it still holds about 3 per cent in Vedanta Ltd after the sale, while warning that it was possible that the Indian tax department might make further sales. READ MORE