MARKET WRAP: Indices end higher as PM Modi likely to win no-trust vote

Benchmark indices gained on Friday, as the

Modi government is expected to win the no-confidence vote, to be held at 6 pm today. 
In the 545-member (including the Speaker) Lok Sabha, the BJP-led NDA can bank on around 311 members.

The S&P BSE Sensex ended the day at 36,496, up 145 points while the broader Nifty50 index settled at 11,010, up 53 points

IT and pharma stocks gained as the rupee hit an all-time low. The Nifty IT index was trading up by 1.5 per cent with Infosys, Tech Mahindra and HCL Tech up between 1.6 per cent to 2.6 per cent. Meanwhile, in the pharma sector, Sun Pahrma and Cipla gained over 2.5 per cent each.

Among individual stocks, Bajaj Finserv hit a record high, after the Bajaj Group-owned asset & wealth management firm posted a 41 per cent surge in its first-quarter profit on Thursday.

Bajaj Auto, on the other hand, dipped 9 per cent after the company reported a lower than expected 21% year on year (YoY) growth in standalone net profit Rs 11.15 billion in June quarter (Q1FY19). Analysts on an average had expected a profit of around Rs 13 billion for the quarter

NO-CONFIDENCE MOTION

The Lok Sabha on Friday took up a no-confidence motion against the government for debate and voting, two days after the start of the monsoon session. Top guns of the Congress and the Bharatiya Janata Party (BJP) are taking part in the debate, which will conclude with a reply from Prime Minister Narendra Modi. GET ALL LIVE UPDATES HERE

GLOBAL MARKETS

The yuan slid as low as 6.8128 to the dollar in the onshore market after the central bank set a weaker fixing for the currency for the seventh straight session, forcing a volatile session in Asian stocks.

After falling 0.4 per cent, MSCI’s index of Asia-Pacific shares outside Japan ended the day 0.6 per cent higher as the yuan rebounded. Market participants suspected state intervention to support the currency.

European markets were not immune to the jitters. The pan-European STOXX index and Germany’s DAX - which is highly exposed to trade and China - fell 0.2 per cent at the start of trading.

MSCI’s all-country world Index, which tracks shares in 47 countries, was up 0.2 per cent on the day but was set to end the week flat.

(with Reuters inputs)

3:42 PM

Nifty IT index ends 1.46% higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
INFIBEAM INCORP.	168.90	157.25	11.65	7.41
TECH MAHINDRA	658.90	642.20	16.70	2.60
INFOSYS	1348.00	1316.70	31.30	2.38
TATA ELXSI	1397.05	1374.60	22.45	1.63
HCL TECHNOLOGIES	997.80	982.10	15.70	1.60

3:38 PM

Nifty sectoral gainers and losers of the day

3:36 PM

BSE Sensex: Infosys, Sun Pharma, RIL among top gainers of the day, Bajaj Auto top loser

3:34 PM

Markets at Close

The S&P BSE Sensex ended the day at 36,496, up 145 points while the broader Nifty50 index settled at 11,010, up 53 points

3:15 PM

RIL, Bandhan Bank, Jubilant FoodWorks hit new high

 

Shares of Reliance Industries (RIL), Bandhan Bank, Jubilant FoodWorks, Bajaj Finance, Bajaj Finserv, HEG and 3M India have hit their respective all-time highs on the BSE in intra-day trade on Friday.

 

Bandhan Bank has soared 10% to Rs 679, extending its past three days 11% rise on the BSE, after the bank reported a strong 47.5% year on year (yoy) growth in net profit at Rs 4.82 billion in June quarter (Q1FY19), on back of strong operational income. The private sector lender had a profit of Rs 3.27 billion in year-ago quarter. READ MORE

3:01 PM

NCLAT permits lenders to meet, finalise bid for Bhushan Power & Steel

 

The National Company Law Appellate Tribunal (NCLAT) on Friday gave a go-ahead to the lenders' meeting of debt-ridden Bhushan Power & Steel (BPSL), directing it to finalise a bid for the company.

 

Vacating its earlier stay, the appellate tribunal has directed the committee of creditors (CoC) of the company to consider the resolution plans submitted by three firms -- Tata Steel, Liberty House and JSW Steel. READ MORE

2:44 PM

WEB EXCLUSIVE No-confidence motion likely to be a non-event for the markets

 

The no-confidence motion – a first in 15 years – is likely to be a non-event for the markets as they expect the Narendra Modi – led National Democratic Alliance government to sail through easily. In the 545-member (including the Speaker) Lok Sabha, the BJP-led NDA can bank on support from over 300 members, including the 273 of the BJP, Shiromani Akali Dal's (SAD's) 4, reports suggest.

 

This is not the first time that the NDA – led government is facing a test of strength at the floor of the House. Back in 2003, the then Prime Minister Atal Bihari Vajpaee defeated a no-confidence motion moved by the then Congress President Sonia Gandhi. READ MORE

2:25 PM

Centrum on UltraTech Cement

UltraTech’s (UTCEM) Q1FY19 standalone EBITDA rose a modest 4% YoY, as weak pricing amid elevated cost inflation moderated the positives of 33% YoY volume growth (core volume up ~7.5% YoY). Continued improvement in energy consumption metrics and lead distance reduction partly moderated the impact of rising energy costs YoY.  Amid a good demand outlook, we expect UTCEM to deliver an industry leading 14% volume CAGR during FY18-20E.

We also expect UTCEM’s margins to benefit from better pricing (H2FY19 onwards), UTCEM’s rising economies of scale and prudent cost controls. We reiterate BUY with a revised target price of Rs4,740

2:24 PM

Kotak Securities on Hindalco

According to reports, Hindalco may acquire Aleris, a manufacturer of rolled products for US$2.5 bn. We believe this acquisition can be earnings accretive in a short span as Aleris has invested close to US$800 mn in growth capex over the last few years which can aid strong growth in earnings over the next 2-3 years—EBITDA can improve to US$310-325 mn by FY2020 from US$200 mn. We estimate Hindalcs leverage to be comfortable with net- debt/EBITDA at 3X-2.5X over FY2019-2020E. We maintain our BUY rating.

2:23 PM

Motilal Oswal on Bajaj Finance

We think that at P/B of 6x FY20 and PE of 30x, valuations have become premium. At our target price of Rs 2,500, there is no upside – hence we downgrade to Neutral. Risk to our rating change essentially remains from continued multiple expansion.

2:22 PM

No-confidence motion LIVE: Rahul Gandhi hugs PM Modi after fiery speech GET ALL UPDATES HERE

2:18 PM

2:16 PM

Bajaj Auto skids 8% on disappointing Q1 results

 

Bajaj Auto dipped 8% to Rs 2,876 on the BSE in noon deal trade after the company reported a lower than expected 21% year on year (YoY) growth in standalone net profit Rs 11.15 billion in June quarter (Q1FY19). Analysts on an average had expected profit of around Rs 13 billion for the quarter. The stock dipped 9% from its early morning high of Rs 3,152 on the BSE.

 

Turnover during the quarter under review grew 33% at Rs 78.24 billion against Rs 59 billion in the corresponding quarter of previous year. READ MORE

2:00 PM

Top BSE500 gainers

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
ADANI POWER	24.25	2.00	8.99	4032977
STERLITE TECH.	327.20	26.05	8.65	808314
BAJAJ FIN.	2710.05	192.45	7.64	327164
BAJAJ FINSERV	6665.00	358.10	5.68	52630
JUBILANT FOOD.	1484.05	70.90	5.02	76926

1:59 PM

No Confidence Motion

MSP also a 'jhumla strike': Rahul Gandhi