MARKET WRAP: Indices at new high; Sensex up 442 pts, Nifty hits 11,700

Benchmark indices ended at an all-time closing high on Monday, boosted by gains in bank stocks

Benchmark indices ended at all-time closing high on Monday, the ninth time this month, following positive global cues and boosted by gains in bank stocks including ICICI Bank and SBI. The August series futures and options expiry on Thursday may lead to some volatility in the market. 

The S&P BSE Sensex ended the day at an all-time closing high of 38,694, up 442 points while the broader Nifty50 index settled at a new closing high of 11,691, up 135 points. In intraday deals, the broader Nifty50 index climbed over 1.5 per cent to hit 11,700 for the first time ever, while the S&P BSE Sensex also hit a record, rising over 1 per cent to 38,736.88

Among sectors, shares of public sector banks (PSBs) are in focus with Nifty PSU Bank index gaining more than 2% on Monday ahead of the Allahabad Court verdict on stressed power assets as the Reserve Bank of India (RBI) deadline ends today. The RBI’s February 12 circular said all stressed assets will either get resolved by August 27 or get taken to the NCLT.

MACRO DATA

Investors will look forward to April-June quarter GDP data, which will be released on August 31. For the quarter ended March 31 2018, the GDP growth print stood at 7.7 per cent. July fiscal deficit data will be out on Friday when the infrastructure output data for July will also be released. 

GLOBAL MARKETS

Asian shares were also higher, boosted by record Wall Street highs last week that followed reassuring comments from the US Federal Reserve Chair, and as stock markets in China gained after the country’s central bank tweaked its management of the yuan.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1.1 per cent, while Japan’s Nikkei stock index closed 0.9 per cent higher.

In China, shares rose to their highest levels in two weeks. The Shanghai Composite index added 1.7 per cent and the blue-chip CSI300 index surged 2.2 per cent, after the People’s Bank of China late on Friday revived a “counter-cyclical factor” used to set the midpoint of the daily trading band of the yuan, in a bid to support it.

(With inputs from Reuters)

4:18 PM

MARKET COMMENT Jayant Manglik, President, Religare Broking

It's been an exceptional start of the expiry week as Nifty gained over a percent and settled closer to 11,700. It opened gap up in line with from other global indices, mainly in reaction to the latest statement from the US Fed wherein they've hinted that further rate hikes would be gradual. Besides, recovery in rupee combined with encouraging data of foreign fund flow added to positivity. Almost all the sectoral indices, barring media and realty, contributed to the rally however broader market showed mixed trend. 

 

Markets are steadily moving higher despite mixed cues and this clearly indicates upbeat sentiment among the participants. However, we feel participants, especially traders, should gradually reduce their positions on every rise in Nifty from hereon and focus more on stocks. Banking, auto and pharma are still our top picks for short term trades

3:39 PM

Nifty PSU Bank index gains over 2%; top gainers

3:38 PM

Sectoral trend

3:35 PM

Top Sensex gainers and losers

3:33 PM

Markets at Close

The S&P BSE Sensex ended the day at all-time closing high of 38,694, up 442 points while the broader Nifty50 index settled at new closing high of 11,691, up 135 points

3:25 PM

Future Group shares gain on talks of global interest

 

Shares of Future Group companies have rallied by up to 14% on the BSE after the media reported that Google, Paytm Mall may team up to shop for Future Retail stake.

 

“The Company evaluates various possibilities, including in relation to business association with third parties, which is always a subject matter of further feasibility studies and the need for requisite consents in accordance to the applicable laws. At present, since there has been no such decision taken by the Board of Directors of the Company there is no disclosure obligation that would have otherwise triggered,” Future Retail said in a BSE filing on clarification on news report. READ MORE

3:12 PM

Assets under management of top India-focused offshore equity funds shrink

 

Assets under management (AUM) of most of the top India-focused offshore equity funds have seen a decline in the past one year despite the benchmark S&P BSE Sensex rising 15 per cent.

 

The total AUM of top 10 funds shrunk by 1.4 per cent to $26 billion for the one-year period ending June 2018, data provided by fund Morningstar showed. The drop in assets is on the back of $1.2 billion of outflows from these funds. READ MORE

2:59 PM

F&O watch

Rollover activity in the Nifty seems to be on the higher side into the September series after exhibiting significant resilience at highs during the series as the Nifty continues to trade near 11500 despite multiple headwinds. The Nifty near month futures have almost 29.5 million shares, significantly high compared to last six months. At the same time, with PCR Ratio for the Nifty testing 1.70 levels, consolidation above11500 seems more likely in the settlement week.

The roll spread in the Nifty is likely to inch up due to rollover of long positions during the August series. We believe current spread of 38 points may move beyond 45 points towards settlement. On the other hand, the Bank Nifty continued to see closure of positions in the near month series with roll cost of just 100 points

2:51 PM

Centrum on Siyaral Silk Mills

Given the current quarter performance, we have marginally lowered our estimates with revenue and PAT CAGR of 14.1% and 14.5%, respectively over FY18-20E (vs 14.5% and 14.6% earlier). Currently, SSML trades at a P/E of 17.3x on FY20E basis.

We maintain our view that SSML is likely to do well over the medium to long term, however on a quarterly basis there may be variations on the sales and profit front depending upon the market conditions and demand scenario. We value the company at 21x FY20E EPS, giving a target price of Rs 674.

2:45 PM

Sebi is working on a special policy to ensure data privacy for investors

 

The Securities and Exchange Board of India (Sebi) will be coming up with a special policy to ensure data privacy for investors. Sources say the regulator is working on standard procedures for sharing and storing of investor data among market intermediaries and third parties.

 

The move comes at a time when the clamour for strict data privacy laws is growing louder with other regulatory agencies, including the Reserve Bank of India, making efforts to address concerns. READ MORE

2:30 PM

Rupee's weakness worrying you? Beat depreciation with international funds

 

The rupee touched an all-time low against the dollar recently and is now trading at the 70.11 mark. It has depreciated 8.90 per cent against the dollar year-to-date.

 

One way how investors can protect themselves against currency depreciation is by investing in international funds offered by mutual fund houses in India. Diversify geographically Investing in international funds makes your portfolio less dependent on the Indian market. READ MORE

2:15 PM

RIL, TCS, Bajaj Finance hit new highs; rally over 60% in one year

 

Shares of three Nifty 50 companies - Reliance Industries (RIL), Tata Consultancy Services (TCS) and Bajaj Finance – hit their respective new highs on the National Stock Exchange (NSE) on Monday, rallied more than 60% each in past one year.

 

Besides these three companies, Dabur India, Havells India, Indiabulls Ventures, Infibeam Avenues, JSW Steel, Merck, MphasiS, Page Industries, Pfizer, RBL Bank, Sunteck Realty, Torrent Pharmaceuticals and VIP Industries were total 17 stocks from the Nifty 500 index touched new highs today. READ MORE

2:01 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	38,718.13	+466.33	+1.22
S&P BSE SENSEX 50	12,243.17	+140.25	+1.16
S&P BSE SENSEX Next 50	35,191.64	+321.18	+0.92
S&P BSE 100	12,003.34	+133.34	+1.12
S&P BSE Bharat 22 Index	3,733.08	+62.09	+1.69

1:45 PM

PSBs in focus; SBI, Bank of Baroda, Canara Bank up over 2%

 

Shares of public sector banks (PSBs) are in focus with Nifty PSU Bank index gaining more than 2% on Monday, ahead of the Allahabad Court verdict on stressed power assets as the Reserve Bank of India (RBI) deadline ends today.

 

The RBI’s February 12 circular said all stressed assets will either get resolved by August 27 or get taken to the NCLT. READ MORE

1:30 PM

Don't give up on gold yet, it can still be good bet during uncertain times

 

Yash Singh, head of human resource at a leading corporate house, is more than a tad disappointed in gold. He has been diligently buying one 10 gram gold coin every month for over five years. “It has become a habit now,” says Singh.

 

But in the last few months, his faith in the yellow metal has been shaken. Nowadays, he is constantly seeking advice from his financial planner and other friends on whether he should continue this habit. READ MORE