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Benchmarks rise for 2nd straight session

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Last Updated : Jul 02 2019 | 5:50 PM IST

Key equity benchmarks ended higher for the second consecutive trading session. The Nifty ended above 11,900 mark. The barometer index, the S&P BSE Sensex, rose 129.98 points or 0.33% to 39,816.48, as per the provisional closing data. The Nifty 50 index rose 44.7points or 0.38% to 11,910.30, as per the provisional closing data.

The S&P BSE Mid-Cap index was up 0.38%. The S&P BSE Small-Cap index ended flat at 14,283.13.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1146 shares rose and 1345 shares fell. A total of 154 shares were unchanged.

Buying in index heavyweights supported the key indices. HDFC Bank (up 0.3%), Reliance Industries (up 0.34%) and Tata Consultancy Services (up 0.33%) rose.

Alembic Pharmaceuticals was up 4.96% to Rs 528.55 after the company has received US Food & Drug Administration (USFDA) approval for Febuxostat tablets, 40 mg and 80 mg. Febuxostat tablets are indicated for the chronic management of hyperuricemia in adult patients with gout. Febuxostat Tablets have an estimated market size of $578 million for twelve months ending December 2018 according to IQVIA. The company had previously received tentative approval for this ANDA.

UPL (up 3.52%), Indiabulls Housing Finance (up 3.34%) and India Oil Corporation (up 1.81%) advanced.

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Sun Pharmaceutical Industries (down 2.54%), Dr. Reddy's Laboratories (down 1.39%) and Bajaj Auto (down 1.18%) declined.

Godrej Properties fell 12.64 % to Rs 958.7 on profit booking after a recent steep rally. The stock spurted 14.3% in the past three trading sessions to settle at Rs 1,097.40 yesterday, 1 July 2019, from its close of Rs 960.10 on 26 June 2019.

Yes Bank fell 8.02 % at Rs 100.4 after the media reported that Mumbai-based Radius Developers has defaulted on scheduled interest payments on a Rs 1,200-crore loan to the private lender. As per reports, Radius Developers has exporsure of about Rs 5500 crore to the banking system. The media quoted a Radius Group spokesperson as saying that the company will be paying the interest component of Rs 30 crore to Yes Bank by 5 July.

DHFL was up 2.24% to Rs 75.25 after media reports suggested that the lenders to the DHFL group have agreed on Monday, 1 July 2019, to sign an inter creditor agreement (ICA) on 5 July 2019 and consider a resolution plan for the firm.

ICRA declined 4.83% to Rs 3062.85 after the company sent its managing director and group CEO Naresh Takkar on leave amid an anonymous complaint sent by the market regulator.

ICRA has decided, pending completion of the examination of the concerns raised in the anonymous representation that was forwarded to the company by the Securities and Exchange Board of India (Sebi), to place Naresh Takkar, managing director (MD) and chief executive officer (CEO) on leave. The company has decided to appoint Vipul Agarwal, as the interim chief operating officer (COO), apart from his role as group chief financial officer (CFO). Agarwal will be responsible for handling ICRA ratings and non-ratings businesses. The senior management of ICRA and its group entities, will report to him. During Naresh Takkar's period of leave, Vipul Agarwal will report to the board of directors.

Media reports suggested that an anonymous complaint has alleged that there were lapses when ICRA assigned a high rating of AAA to IL&FS. Last September, IL&FS defaulted on its debt payments, triggering a liquidity crisis in the financial market.

State-run ONGC was up 2.55% to Rs 165.15. ONGC has discovered over 230 million tonnes of in-place oil reserves in the last three years, Petroleum Minister Dharmendra Pradhan reportedly said on Monday, 1 July 2019. In a written reply to a question in the Lok Sabha, he said ONGC as on 1 April 2019, has in place oil reserves of 459.84 million tonnes. These reserves are spread over 16 assets it currently extracts oil from, he said.

Meanwhile, ONGC announced after market hours yesterday, 1 July 2019, that it signed an MoU with Indian Oil Corporation (IOC) for Co2 based Enhanced Oil Recovery (EOR) by injecting Co2 captured from IOC's Koyali refinery. The MoU is aimed to establish a framework for mutually beneficial cooperation in the area of Co2-EOR as a mode of CCUS. The common objective is to address some of the biggest challenges of our country in particular & world at large, namely energy security and climate change.

State-run Bhel fell 1.51%. The company appointed Dr. Nalin Shinghal as chairman & managing director (CMD) of the company for five years.

Coal India was up 1.51% to Rs 252.9. The company announced the provision coal production and offtake figures for the month of June 2019. Coal India and its subsidiaries has achieved production of 45.08 million tonnes in June 2019 compared to 44.87 million tonnes in June 2018. Meanwhile, offtake of coal stood at 48.86 million tonnes in June 2019, lower by 1.6% over the same period last year.

Sadbhav Infrastructure Project declined 1.34% to Rs 69.9. The company announced that it has signed agreements to sell its entire equity shareholding in nine operational road projects to IndInfravit Trust for about Rs 6,610 crore.

Power generation stocks were trading higher. Reliance Power (up 3.81%), JSW Energy (up 3.79%), Tata Power (up 3.25%), Torrent Power (up 3.03%), Coal India (up 1.36%), GMR Infrastructure (down 0.6%), CESC (up 0.52%), NTPC (up 0.14%) and Power Grid Corporation of India (up 0.1%) edged higher.

Adani Power was 8.13% to Rs 65.15. The company informed that the Supreme Court of India has announced in the open court that a civil appeal made by the company's wholly owned subsidiary, Adani Power (Mundra) (APMuL) for cancellation of power purchase agreement having 1000 MW capacity (Bid 2 PPA) with Gujarat Urja Vikas Nigam, has been allowed. APMuL has earlier made a civil appeal challenging the order of Appellate Tribunal for Electricity (APTEL) dated 7 September 2011, whereby APTEL had declared the termination of Bid 02 power purchase agreement (PPA) by APMuL to be invalid. Consequently, APMuL will now approach to the Central Electricity Regulatory Commission (CERC) for the past compensation.

Cox & Kings was locked in 5% lower circuit at Rs 32.95 after the company said that out of aggregate amount of Rs 65 crore, Rs 15 crore has been paid and the balance amount of Rs 50 crore has not been paid. The company said it has been meeting its liability obligations. However, due to a cash flow mis-match and a situation exacerbated by rating downgrade, the company proposes to meet its financial obligations through a combination of internal accruals and monetisation of assets. The company is working towards plans to make good its obligations.

Bharti Airtel was up 1.43% to Rs 353.5. Tata Teleservices Maharashtra (TTML) was up 4.75% to Rs 3.97. Tata Teleservices (TTSL) and its unit on Monday, 1 July 2019, completed the merger of their consumer business with that of Bharti Airtel and unit Bharti Hexacom.

In a separate notice to the stock exchanges Monday, 1 July 2019, TTML - the listed unit of TTSL - said that its shareholders will get one equity share of Bharti Airtel in exchange for 2,014 TTML shares on the record date of 12 July. Also, investors holding fully paid-up, redeemable preference shares of TTML will get 10 paid-up redeemable, non-participating, non-cumulative preference shares of face value Rs 100 of Airtel, in proportion to their holding on the record date, the company added.

Further, TTML and Bharti Airtel have agreed that 12 July 2019 shall be the 'record date' for the purpose of reckoning the equity shareholders and holders of redeemable preference shares of TTML, who will be entitled to receive consideration pursuant to the scheme.

Swelect Energy Systems was locked in upper circuit limit of 20% at Rs 253.70 after the company announced that its board will consider bonus issue on 8 July 2019.

Tata Motors fell 2.5% to Rs 163.65. Tata Motors' commercial and passenger vehicles business sales in the domestic market witnessed a drop of 14% at 49,073 units compared to 56,773 units sold over last year as subdued demand continued in June 2019. The announcement was made after market hours yesterday, 1 July 2019.

TVS Motor Company declined 1.21% to Rs 430.3. The company reported 5.26% fall in total sales to 2.97 lakh units in June 2019 as against 3.13 lakh units in June 2018. Domestic two-wheeler sales fell 8.08% to 2.26 lakh units in June 2019 over June 2018. Two-wheeler exports grew 4% to 57,182 units. Three-wheeler sales grew 10% to 13,641 units.

Eicher Motors was up 2.2% to Rs 20029.20. Royal Enfield, the two-wheeler division of Eicher Motors, reported a 22% decline in total sales to 58,339 units in June 2019 over June 2018. Exports during the month, jumped 72% to 3,257 units as against 1,889 units in the corresponding month a year ago, the company said.

SML Isuzu was down 3.95% to Rs 727.9. The company reported 22.4% decline in total sales to 1,564 units in June 2019 over June 2018.

Hero MotoCorp shed 0.52% to Rs 2600.56. The company reported 12.49% fall in 2-wheeler sales to 6.16 lakh units in June 2019 over June 2018.

On the macro front, after three successive months of above Rs 1 lakh crore plus collection, the revenue from the Goods & Services Tax (GST) eased just below Rs 1 lakh crore in June 2019. According to Finance Ministry, the total gross GST collection in June was Rs 99939 crore, up 4.52% compared to same month last year.

On the data front, the Index of Eight Core Industries registered a growth of 5.1% in May 2019 over May 2018. The cumulative growth of these industries during April-May 2019-20 was 5.7% as compared to the growth of 4.4% during April- May 2018-19. The data was announced by government after market hours yesterday, 1 July 2019.

Overseas, most shares in Europe were trading higher on Tuesday, while most Asian markets closed lower, as investors weighed the tariff truce between the US and China and the potential for a trade deal. US President Donald Trump reportedly said Monday that renewed talks have already begun, and added that any deal has to be better for us than for them.

US stocks ended higher on Monday led by gains in technology stocks on optimism for progress in US-China trade talks and signs of a likely reprieve for Chinese telecom company Huawei.

US manufacturing showed surprising strength in June, however, with the IHS-Markit purchasing-manager's index rising to 50.6 in June, from 50.1 in May. Separately the Institute for Supply Management's (ISM) index showed the sector slowing from 52.1% in May to 51.7% in June.

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First Published: Jul 02 2019 | 3:36 PM IST

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