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Barometers firm up; breadth remains weak

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Last Updated : Jul 15 2019 | 1:50 PM IST

Key benchmark indices firmed up once again in afternoon trade. The Nifty was trading above 11,550 mark. At 13:26 IST, the barometer index, the S&P BSE Sensex, was up 83.75 points or 0.22% % at 38,819.94 .The Nifty 50 index was up 15.10 points or 0.13% at 11,567.45

The S&P BSE Mid-Cap index was down 0.58%. The S&P BSE Small-Cap index was down 0.51%.

The market breadth was weak. On the BSE, 828 shares rose and 1408 shares fell. A total of 154 shares were unchanged.

UPL (up 1.9%), Maruti Suzuki India (up 1.16%) and Bajaj Finance (up 0.87%) advanced.

Indiabulls Housing Finance (down 4.48%), Vedanta (down 2.12%), Larsen & Toubro (down 1.74%) and Zee Entertainment Enterprises (down 1.63%) declined.

Yes Bank was up 0.85% to Rs 94.95 after the media reported that a US-based PE firm is leading a four-member consortium to pick stake in the private lender. According to media reports, Yes Bank has received an $850 million-term sheet offer over the weekend by the marquee PE investor. The consortium is comprised of two US-based PE investors and two domestic investors, reports suggested. Yes Bank is in the final stage of stake sale, and the announcement is likely after June quarter results on 17 July, reports added.

Last week, Yes Bank clarified to the bourses that its financial position is sound and stable and its liquidity and operating performance continue to be robust.

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IT major Infosys jumped 6.29% to Rs 772.85. The company announced that its net profit fell 6.8% to Rs 3802 crore on 1.23% increase in revenue from operations to Rs 21803 crore in Q1 June 2019 over Q4 March 2019. Operating profit fell 3.2% to Rs 4471 crore in Q1 June 2019 over Q4 March 2019. Operating margin was 20.5% in Q1 June 2019. The result was declared after market hours on Friday, 12 July 2019.

The company raised FY20 revenue growth guidance in constant currency terms to 8.5-10% from 7.5%-9.5%, while maintaining FY20 operating margin guidance in range of 21-23%. The stock hit a 52-week high of Rs 777 today, 15 July 2019.

Tata Consultancy Services was up 0.42% to Rs 2116.75. The company during market hours today, 15 July 2019, announced a partnership with NXP Semiconductors, to transform the latter's enterprise supply chain lT operations with ignio and the TCS Private Cloud on alpha architecture.

Sun Pharmaceuticals Industries gained 3.42% to Rs 421.65. The company before market hours today, 15 July 2019, announced the U.S. launch of Ezallor Sprinkle (rosuvastatin) capsules for the treatment of three types of elevated lipid disorders in people who have difficulty swallowing, a problem that is estimated to affect approximately 30- 35% of long-term care residents. Meanwhile, a foreign brokerage reportedly upgraded stock to overweight and raised price target to Rs 505 from Rs 470 per share, implying 24% potential upside on expectations of revival in earnings FY21 onwards.

Avenue Supermarts surged 5.41% to Rs 1433 after the company's consolidated net profit rose 31.87% to Rs 323.09 crore on 26.94% rise in total income to Rs 5825.51 crore in Q1 June 2019 over Q1 June 2018. The result was announced on Saturday, 13 July 2019.

Realty stocks were mixed. Oberoi Realty (up 1.47%), Mahindra Lifespace Developers (up 0.79%), Godrej Properties (up 0.73%), Sobha (up 0.5%), Omaxe (up 0.33%) and DLF (up 0.27%) gained. Indiabulls Real Estate (down 2.41%), Prestige Estates Projects (down 1.67%), The Phoenix Mills (down 1.3%), Sunteck Realty (down 1.15%) and Anant Raj (down 0.17%) declined.

On the macro front, the annual rate of inflation, based on monthly Wholesale Price Index (WPI), stood at 2.02% (provisional) in June,2019 (over June 2018) compared with 2.45% (provisional) in the previous month and 5.68% during the corresponding month of the previous year. The data was announced during trading hours today, 15 July 2019.

India's industrial production (base year 2011-12=100) rose at slower pace of 3.1% in May 2019, while showing moderation in growth from a six-month high of 4.3% in April 2019. However, the industrial production growth for April 2019 has been revised sharply upwards to 4.3% from 3.4% as reported provisionally.

The all-India general CPI inflation rose to 3.18% in June 2019 (new base 2012=100), compared with 3.05% in May 2019. The corresponding provisional inflation rate for rural area was 2.21% and urban area 4.33% in June 2019, as against 1.86% and 4.51% in May 2019. The core CPI inflation eased to 4.09% in June 2019 compared with 4.23% in May 2019. Both the data were released by the government after market hours on Friday, 12 July 2019.

Overseas, most European markets opened higher while most Asian markets were trading higher after investors digested data showing Chinese economic growth slowed in the second quarter. Markets in Japan are closed on Monday for a holiday.

China released second-quarter figures showing that its economy slowed to 6.2%. From April to June, China's economy grew 6.2% from a year ago, the country's statistics bureau said on Monday.

US stocks posted record closing highs on Friday after Federal Reserve Chairman Jerome Powell in two days of congressional testimony bolstered investor expectations for an interest-rate cut at the end of the month. As per reports, the Fed will move at its July 30-31 meeting to cut its fed-funds rate by at least a quarter point and to potentially deliver further cuts before year-end.

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First Published: Jul 15 2019 | 1:18 PM IST

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