MARKET WRAP: Nifty ends at fresh closing high of 11,320; PSU banks rally

The benchmark indices ended at record closing  high for the third straight session on Monday led by gains in PSU Banks, ahead of the RBI policy decision due later this week.

The S&P BSE Sensex settled at a record high of 37,494, up 158 points, while the broader Nifty 50 index settled at a new high of 11,320, up 41 points.

In intra-day deals,  the S&P BSE Sensex hit a fresh all-time high of 37,533.50 while the Nifty50 index touched its record high level of 11,328.10.

Among sectoral indices, the Nifty PSU Bank index settled over 4% higher led by a rise in Bank of Baroda, Andhra Bank and Oriental Bank of Commerce.

RBI Monetary Policy
 

The RBI's Monetary Policy Committee (MPC), which is slated to meet during July 30 to August 1 for the third bi-monthly monetary policy statement for 2018-2019, will remain the biggest focus of the week for the investors. The six-member monetary policy committee of the central bank headed by Governor Urjit Patel in its June meet bit the bullet and hiked the repo rate by 25 basis points to 6.25 per cent. 

Macro data

On the macro front, PMI data for the manufacturing and services sectors would also influence trading sentiments.

Global Markets

Globally, US Fed policy meet this week might also influence trading sentiment at the domestic bourses. The Fed had hiked its benchmark short-term interest rate a quarter percentage point in June and indicated that two more increases are likely this year. The move pushed the funds rate target to 1.75 per cent to 2 per cent. 

World stocks fell and the dollar steadied on Monday as a busy week of central bank meetings and company updates started. Japanese government bonds sold off before possible monetary policy tweaks.

MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.5 per cent and Chinese blue chips by 0.7 per cent.

(with Reuters inputs)

3:45 PM

Nifty PSU Bank index ends 4.30% higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
BANK OF BARODA	152.15	137.85	14.30	10.37
ANDHRA BANK	35.65	33.30	2.35	7.06
ORIENTAL BANK	81.15	76.10	5.05	6.64
BANK OF INDIA	103.15	97.80	5.35	5.47
PUNJAB NATL.BANK	85.60	82.00	3.60	4.39

3:42 PM

Nifty sectoral gainers of the day

3:41 PM

BSE Sensex: Bharti Airtel, ICICI Bank, SBI among top gainers of the day, Infosys top loser

3:33 PM

Market at close

 

The S&P BSE Sensex settled at a record high of 37,494, up 158 points, while the broader Nifty 50 index settled at a record of 11,320, up 41 points.

 

3:19 PM

TVS Motor hits fresh 52-week low; stock slips 13% in past three weeks

Shares of TVS Motor Company hit a fresh 52-week low of Rs 511 per share, slipping 3% on the BSE on Monday, and extending its 5% decline in past three trading sessions in otherwise firm market on back of heavy volumes. The stock fallen below its previous low of Rs 518 recorded on Thursday, July 26, 2018, in intra-day trade. READ MORE

2:58 PM

RIL, L&T, Infosys among IIFL's top-six investment picks for the long haul

Indian benchmark equity indices,the BSE Sensex and the National Stock Exchange’s (NSE’s) Nifty50 have been hitting record highs of late.But growth has been limited to large-cap stocks; mid-caps have failed to join the party. READ MORE

2:47 PM

Morepen Laboratories surges 14% on USFDA approval for Baddi facility

Shares of Morepen Laboratories have surged 14% to Rs 36.20 per share on the National Stock Exchange (NSE) in intra-day trade on back of heavy volumes after the company announced that it has received United States Food and Drug Administration (USFDA) approval for both its bulk drugs manufacturing facilities situated in Himachal Pradesh. READ MORE

2:30 PM

Finding value in the market: Stocks are trading at extreme valuations

 

It is difficult to find value in a market which is trading at its all-time highs. However, given the lopsided growth, stocks are trading at extreme valuations.

 

There are many Nifty stocks available two standard deviation (SD) above (or below) their financial metrics like price-to-earnings (P/E), price-to-book (P/B) and enterprise value (EV)-to-Ebitda. Recent winners such as Tata Consultancy Services (TCS) and Hindustan Unilever (HUL) are trading at a P/E two SD above, while state-owned ONGC is available two SD below. READ MORE

2:15 PM

Thyrocare Technologies up 7% as board mulls share buyback proposal

 

Thyrocare Technologies was trading 7% higher at Rs 633 on the BSE, after the company that its board will meet on August 04, 2018, to consider a proposal to buy back equity shares.

 

“The meeting will also discuss about postponing the 18th Annual General Meeting convened to be held on August 11, 2018 to a later date, to enable the shareholders to consider the aforesaid proposal, too,” Thyrocare Technologies said in a BSE filing. READ MORE

1:59 PM

Market Check

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	11308.05	11278.35	29.70	0.26
	9611.70	9579.05	32.65	0.34
	18820.40	18781.45	38.95	0.21
	7450.25	7402.85	47.40	0.64
	12.88	12.31	0.57	4.63

1:45 PM

Recent GST rate cut is credit negative, revenue may take 0.08% hit: Moody's

 

Rating agency Moody's on Monday said the recent GST rate cuts on 88 items will weigh on government's revenue collection and is credit negative as it will put pressure on efforts of fiscal consolidation.

 

The GST Council, chaired by Union Finance Minister, last week cut tax rates on white goods as well as various handicrafts items and paints. READ MORE

1:34 PM

Top gainers in BSE 500:

COMPANY	PRICE( )	CHG( )	CHG(%)
SCHNEIDER ELECT.	100.50	11.50	12.92
BANK OF BARODA	151.15	13.10	9.49
BEML LTD	885.00	63.80	7.77
DEEPAK FERT.	283.00	18.10	6.83
THYROCARE TECH.	632.65	39.15	6.60

1:15 PM

Forex reserves falling below $400 billion not a worry, say experts

 

India’s foreign exchange reserves could go below $400-billion mark. However, experts say this in itself should not be a cause for concern.

 

The reserves accumulation happened through portfolio flows, and now that those flows have reversed, putting pressure on the currency, the central bank is right in giving up some of its accumulated reserves defending the rupee, said market experts and economists. READ MORE

1:00 PM

ICICI Bank gains 4% post June quarter results

 

ICICI Bank has moved higher by 4% to Rs 306, extending its past two days 6.5% gain on the BSE, as analyst retained ‘buy’ rating on the stock with upside 12-month target price in the range of Rs 347 to Rs 370.

 

ICICI Bank has reported a net loss of Rs 1.2 billion in the first quarter of the financial year 2018-19 (Q1FY19), on higher provisions for bad loans and treasury losses. The bank miss in an average net profit estimate of Rs 10 billion, due to 129% year on year (yoy) increase in provisions during the quarter to Rs 59.71 billion. READ MORE

 

12:45 PM

RITES hits new high on export order win worth Rs 5,670 million

 

Shares of RITES hit a new high of Rs 284, up 7% on the BSE, extending its Friday’s 19% surge, after the company said it secured export order of USD 82.63 million (approx Rs 5,670 million).

 

The stock of railways consultancy firm RITES had closed at Rs 264, its highest level since listing on July 2, 2018. In past six trading sessions, it zoomed 46% from Rs 194, as compared to 2.3% rise in the S&P BSE Sensex. READ MORE