MARKET WRAP: Sensex sheds 71 pts; Infy slips 4.4%, RIL falls 2.5% post AGM

Benchmark indices ended slightly lower on Thursday with index heavyweights such as Infosys and Tata Steel losing ground, while a looming deadline for imposition of US tariffs on China also  played on investors’ minds.

The S&P BSE Sensex ended at 35,575, down 71 points. The broader Nifty50 index settled at 10,750, down 20 points. Among sectoral indices, the Nifty Metal index settled 1.4% lower led by a fall in shares of National Aluminium Company and Vedanta. The Nifty IT index, too, ended 1.1% lower led by a fall in the shares of Infosys (down 4.4 per cent) and KPIT Technologies.

On S&P BSE Sensex, market heavyweight Reliance Industries (RIL) slipped 2.5% to end at Rs 965. Infosys was the top loser of the day on the 30-share index, falling 4.5% to end at Rs 1284.50.

RIL's 41st AGM

Reliance Industries Limited announced on Thursday the launch of high-speed Jio GigaFiber broadband, which aims to boost fixed-line connectivity in India, and an upgraded version of its Jio Phone with popular social media apps such as Facebook.

At its 41st Annual General Meeting in Mumbai, RIL Chairman Mukesh Ambani announced the broadband for homes and enterprises across 1,100 cities and an e-commerce platform that may rival the likes of Amazon. He also spelt out the milestones achieved by Jio, which has disrupted the telecom industry and triggered a price war. READ MORE HERE
 

GLOBAL MARKETS

Asian stocks fell for the fourth day and major currencies traded in tight ranges on Thursday, with financial markets jittery before a US deadline to impose tariffs on Chinese imports just a day away.

MSCI's broadest index of Asia-Pacific shares outside Japan, which has been drifting lower since Monday, was down 0.5 per cent. The index has lost about 2 per cent this week, during which it plumbed a nine-month low.

Japan's Nikkei lost 1 per cent, South Korea's KOSPI slipped 0.75 per cent, Hong Kong's Hang Seng was off 0.9 per cent and the Shanghai Composite Index fell 0.9 per cent.
 

The United States plans to implement tariffs on $50 billion worth of imports from China as both nations remained locked in a bitter trade dispute that has convulsed global financial markets in recent weeks. On July 6, tariffs on $34 billion worth of imports will take effect, and Beijing has promised to retaliate in kind.

(with Reuters inputs)

4:11 PM

MARKET COMMENT Jayant Manglik, President, Religare Broking

Nifty traded range bound and settled almost unchanged in absence of any fresh trigger. Participants were in the profit taking mood at the start of trade. However, an up move in select index majors, mainly from FMCG and banking, capped downside as trade progressed. 

 

Participants, mainly traders, are in the fix due to excessive volatility and selling pressure in broader market while Nifty has been showing resilience. Trade selection becomes difficult in such scenario. We feel the upcoming earnings season would ease the pressure and also provide the needed trigger for next directional move. Meanwhile, we advise keeping limited exposure mainly in index majors and quality midcap stocks

3:50 PM

Nifty Metal index ended 1.42% lower. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
NATL. ALUMINIUM	59.75	62.10	-2.35	-3.78
TATA STEEL	553.30	571.10	-17.80	-3.12
VEDANTA	221.30	228.05	-6.75	-2.96
JINDAL STEEL	211.85	216.45	-4.60	-2.13
S A I L	78.60	80.30	-1.70	-2.12

3:37 PM

Nifty sectoral performers of the day

3:34 PM

BSE Sensex: Infosys, Tata Steel, RIL among top losers of the day, Yes Bank top gainer

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 35,575, down 71 points while the broader Nifty50 index settled at 10,750, down 20 points.

3:15 PM

Analysts bet on rural economy theme; Nifty FMCG index hits new high

Shares of fast moving consumer goods (FMCG) are trading higher for the second straight day on expectation of a rise in rural consumption, after the Union Cabinet approved a hike in minimum support prices (MSP) for Kharif crops by 1.5 times of the input cost for the 2018-19 season on Wednesday. READ MORE

3:02 PM

Q1FY19 results preview by Kotak Securities

We expect 1QFY19 net income of the KIE coverage universe to be flat yoy. We expect strong growth in the net income of (1) automobiles (strong volume growth on low base and operating leverage-led margin expansion), (2) consumers (continued volume-led sales growth and margin expansion due to operating leverage), (3) metals & mining (higher domestic realizations for ferrous although global prices of base metals were mixed) and (4) pharmaceuticals (led by domestic formulations and stabilization of US businesses) sectors.

We model net loss for (1) banks under coverage (high loan-loss provisions as well as MTM losses on investment portfolio) and (2) telecom (ARPU dilution due to intense competition). We expect net income of the BSE-30 Index to increase 6% yoy and that of Nifty-50 Index to increase 12% yoy. We estimate ‘EPS’ of the BSE-30 Index at Rs1,755 for FY2019E and Rs2,180 for FY2020E. Our ‘EPS’ estimates for Nifty-50 Index for FY2019E and FY2020E are Rs545 and Rs670.

2:58 PM

Lenders may invoke guarantees of Shriram Transport Finance on SVL Ltd

Lenders of SVL Ltd, an unlisted holding company of the Shriram group, are planning to invoke the guarantees of Shriram Transport Finance Company (STFC) after a majority of the SVL's investments turned bad. SVL's subsidiaries like Shriram EPC, Orient Green Power and Haldia Coke are facing insolvency proceedings in the National Company Law Tribunal after a loan default. READ MORE

2:45 PM

Gold firms up for 2nd session on sustained buying

Strengthening gains for the second straight session, gold prices today edged up by Rs 10 to Rs 31,580 per 10 grams at the bullion market on persistent buying by local jewellers amid a firm trend overseas.

 

Silver prices too surged by Rs 690 to Rs 40,600 per kg backed by increased offtake by industrial units and coin makers. READ MORE

2:31 PM

Glencore gives shares $1 billion buyback lift after US subpoena

Commodities trader and miner Glencore will buy back shares worth $1 billion in a move analysts said looked timed to soothe investor nerves just two days after a subpoena from US authorities rattled the stock. READ MORE

2:16 PM

MFs dangle ESOPs carrot to retain top talent ahead of stock market listings

Asset management companies (AMCs) are dangling employee stock option plans (ESOP) in a bid to hold on to key talent as the industry gears up for the next phase of growth and large players look to list on the bourses. READ MORE

2:00 PM

Market Check

 

S&P BSE Sensex	35,592.07		-0.15%
Nifty 50	10,762.35		-0.07%
S&P BSE 200	4,621.83		-0.15%
Nifty 500	9,180.25		-0.16%
S&P BSE Mid-Cap	15,355.74		-0.39%
S&P BSE Small-Cap	16,015.29		-0.22%

1:44 PM

ICICI Prudential MF seeks clarity from Sebi on compensation to investors

The country’s largest asset manager, ICICI Prudential Mutual Fund, has approached the Securities and Exchange Board of India (Sebi) on the issue of compensation to unit holders due to losses incurred from the share sale of sister concern ICICI Securities.

 

Earlier this week, the market regulator directed the found house to return Rs 2.4 billion, along with an interest of 15 per cent per annum, to the five schemes that applied in the initial public offering (IPO) of the broking and investment banking firm. READ MORE

1:30 PM

State lenders lapping up G-secs again, but is it enough to revive market?

 

The tide may be turning for Indian sovereign bonds as the relentless selling from government-owned banks over the past year is showing signs of easing.

 

State lenders, the largest holders of debt, have been net buyers in seven of the past eight sessions through July 3 for the first time since Nov 2017. They’ve added bonds worth Rs 75.91 billion ($1.1 billion) in this period, data from the Clearing Corp. of India Ltd. show. READ MORE

1:15 PM

Vedanta, BHEL, Grasim, Power Grid, Reliance Power hit 52-week low

 

Shares of Vedanta, Bharat Heavy Electricals (BHEL), Grasim Industries, Power Grid Corporation, Reliance Power, Tata Motors, NMDC and Rural Electrification Corporation (REC) were among 22 stocks from the S&P BSE 500 index that hit their respective 52-week low on the BSE in intra-day trade on Thursday.

 

Essel Propack, Great Eastern Shipping, Greenply Industries, Kajaria Ceramics, Kwality, Mangalore Refinery and Petrochemicals (MRPL), Rajesh Exports and Somany Ceramics, too, hit 52-week low today. READ MORE