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Market ends with modest losses

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Capital Market
Last Updated : Jul 29 2019 | 5:31 PM IST

The market edged lower on Monday, resuming its downtrend after a recovery on Friday. Domestic shares mirrored weakness in other Asian shares ahead of US Fed's policy review starting on Tuesday. The Nifty closed below 11,200 for the first time since 15 May 2019. The barometer index, the S&P BSE Sensex, fell 196.42 points or 0.52% to 37,686.37, as per the provisional closing data. The Nifty 50 index fell 95.10 points or 0.84% to 11,189.20, as per the provisional closing data.

The Nifty is trading way below its 100-day simple moving average (DMA) placed at 11,594.84. and the Nifty is now trading closer to its 200-day moving average placed at 11,140.31.

Broader markets tumbled. The S&P BSE Mid-Cap index fell 0.67%. The S&P BSE Small-Cap index fell 1.03%.

The market breadth was negative. On the BSE, 1187 shares rose and 1269 shares fell. A total of 175 shares were unchanged.

IndusInd Bank (up 1.08%), State Bank of India (up 0.20%) and Britannia Industries (up 0.07%), advanced.

Grasim Industries (down 9.54%), Bharti Infratel (down 5.22%), Zee Entertainment Enterprises (down 4.30%) and UltraTech Cement (down 3.12%), declined.

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ICICI Bank gained 3.61%. The bank reported a net profit of Rs 1908.03 crore in Q1 June 2019 as compared to net loss of Rs 119.55 crore in Q1 June 2018. The bank's total income rose 15.24% to Rs 21405.50 crore in Q1 June 2019 over Q1 June 2018. The result was announced on Saturday, 27 July 2019.

Auto shares fell on reports the government is proposing to increase the registration fees for new vehicles across all types. Tata Motors (down 6.56%), Bajaj Auto (down 4.98%), Eicher Motors (down 4.68%), TVS Motor Company (down 3.95%), Ashok Leyland (down 3.64%), Hero MotoCorp (down 2.55%), Mahindra & Mahindra (down 1.92%) and Escorts (down 0.98%) declined.

Maruti Suzuki India dropped 4.02%. The car marker announced introduction of CNG variant in Ertiga and Tour M. The ex-showroom price in Delhi and NCR of Ertiga CNG is Rs 8.87 lakh while the price of Tour M CNG is Rs 8.82 lakh. The same shall be effective from 26 July 2019. The announcement was made after market hours on Friday, 26 July 2019.

IT stocks were mixed. MphasiS (up 2.49%), MindTree (up 1.62%), HCL Technologies (up 1.52%), TCS (up 1.05%), Hexaware Technologies (up 0.74%), Infosys (up 0.53%) and Tech Mahindra (up 0.48%) advanced.

Persistent Systems (down 5.15%), Oracle Financial Services Software (down 1.07%) and Wipro (down 0.51%) declined.

Havells India lost 4.76%. The company's consolidated net profit declined 16.3% to Rs 177.09 crore on 4.47% increase in net sales to Rs 2716.88 crore in Q1 June 2019 over Q1 June 2018. The result was announced on Saturday, 27 July 2019.

Polycab India rose 3.07%. The company's consolidated net profit rose 75.68% to Rs 135.27 crore on a 14.88% increase in net sales to Rs 1932.98 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours on Friday, 26 July 2019.

Eris Lifesciences fell 2.08%. The drug maker's consolidated net profit rose 17.96% to Rs 84.05 crore on 10.04% increase in net sales to Rs 271.89 crore in Q1 June 2019 over Q1 June 2018. The result was announced on Saturday, 27 July 2019.

Indiabulls group's shares fell after BJP Leader Subramanian Swamy sent a letter to PM Modi, accusing the group of Rs 1 lakh crore fraud. Indiabulls Housing Finance (down 9.86%), Indiabulls Integrated Services (down 5%), Indiabulls Ventures (down 4.65%) and Indiabulls Real Estate (down 4.77%) declined.

Swamy urged Prime Minister Narendra Modi to institute a Special Investigation Team of the Central Bureau of Investigation (CBI), Enforcement Directorate (ED), Serious Frauds Investigation Office (SFIO) and Income Tax (IT) officials to probe into the money laundering of the Indiabulls group by siphoning the funds of the National Housing Bank.

Vodafone Idea slumped 26.81%. On a consolidated basis, Vodafone Idea reported net loss of Rs 4067.01 crore in Q1 June 2019 compared with net loss of Rs 2757.60 crore in Q1 June 2018. Net sales rose 92% to Rs 11264.70 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours on Friday, 26 July 2019.

Vedanta lost 5.36%. The company's consolidated net profit fell 11.9% to Rs 1,351 crore on a 3.5% decline in net sales to Rs 21,167 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours on Friday, 26 July 2019.

Revenue in Q1 was lower primarily due to lower commodity prices partially offset by higher aluminium sales, volume addition from ESL, commencement of Gamsberg mine and currency depreciation. EBITDA fell 20% to Rs 5,188 crore in Q1 June 2019 over Q1 June 2018, mainly due to lower commodity prices partially offset by easing of input commodity inflation, rupee depreciation and volume addition from ESL acquisition. EBITDA margin stood at 27% in Q1 June 2019 as against 34% in Q1 June 2018.

Kansai Nerolac Paints jumped 6.20%. The paint maker's consolidated net profit rose 5.34% to Rs 146.02 crore on 9.38% increase in net sales to Rs 1542.41 crore in Q1 June 2019 over Q1 June 2018. The result was announced during market hours today, 29 July 2019.

TeamLease Services fell 4.90%. On a consolidated basis, TeamLease Services' net profit fell 13.8% to Rs 18.79 crore on a 22.5% rise in the net sales to Rs 1251.23 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours on Friday, 26 July 2019.

Music Broadcast lost 6.86%. The company's net profit fell 37.6% to Rs 8.43 crore on a 7.8% fall in the net sales to Rs 69.78 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours on Friday, 26 July 2019.

MOIL fell 1.07%. The company's net profit fell 20.1% to Rs 90.68 crore on a 10.7% fall in the net sales to Rs 280.07crore in Q1 June 2019 over Q1 June 2018. The result was announced on Saturday, 27 July 2019.

ABB India rose 1.07%. The company's net profit rose 27.7% to Rs 130.40 crore on a 3.7% rise in the net sales to Rs 1708.58 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours on Friday, 26 July 2019.

Cadila Healthcare lost 2.88%. The drug maker announced after market hours on Friday, 26 July 2019, that USFDA inspected the company's active pharmaceutical ingredient (API) manufacturing facility located at Ankleshwar from 22 to 26 July 2019. This audit covered both Unit I and II. At the end of the inspection, no observation (483) was issued.

Granules India jumped 6.85%. The pharmaceutical company announced after trading hours on Friday, 26 July 2019, that company's Bonthapally facility located at Hyderabad, Telangana, India has completed the US FDA inspection from 22 to 26 July 2019 with one(1) 483 observation which is procedural in nature. Shilpa Medicare was up 0.57%. The company announced during market hours today, 29 July 2019, that it has completed USFDA audit at its active pharmaceutical ingredient (API) site, Raichur between 22 and 26 July 2019. The drug maker has received Form 483 with 5 observations, with no repeat observations and any data integrity observations. The observations are mostly procedural in nature, the company said.

Cipla fell 1.88%. The drug making company announced during market hours, 29 July 2019, that Alvotech and Cipla Gulf, its wholly-owned subsidiary, have entered into an exclusive partnership for the commercialization of AVT02, an adalimumab biosimilar, in select emerging markets. AVT02 is a mAb biosimilar to AbbVie's HUMIRA, which is a leading drug indicated for the treatment of several autoimmune diseases. AbbVie's HUMIRA recorded sales of about US$20 billion in 2018, making it the largest-selling blockbuster medicine worldwide.

Mahindra Lifespace Developers lost 7.48%. The company's consolidated net profit fell 51.6% to Rs 12.92 crore on 31% decline in net sales to Rs 106.22 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours on Friday, 26 July 2019. EBITDA declined 55.8% to Rs 19 crore in Q1 June 2019 over Q1 June 2018. The EBITDA margin fell to 16% in Q1 June 2019 from 24% in Q1 June 2018.

Power Mech Projects fell 7.26%. The company announced after trading hours on Friday, 26 July 2019, that it received communication from State Project Director, Samagra Shiksha, Andhra Pradesh cancelling the order worth Rs 512.78 crore given to the company for providing necessary infrastructure facilities in all government schools on hybrid annuity mode. The order was cancelled on the ground that the project work was not commenced. As the construction activity is not commenced, there is no implication on the financials of the company.

On a consolidated basis, Power Mech Projects' net profit rose 16.5% to Rs 28.41 crore on a 6.3% increase in net sales to Rs 491.22 crore in Q1 June 2019 over Q1 June 2018. The result was announced on Saturday, 27 July 2019.

Minda Industries fell 2.23%. The company announced on Saturday, 27 July 2019, that commercial paper of Rs 30 crore issued on 26 April 2019 with maturity date of 25 July 2019 has been redeemed.

PNB Housing Finance lost 1.54%. The housing finance company, before market hours today, 29 July 2019, announced that it has raised $100 million from International Finance Corporation, a member of the World Bank Group, for onlending to buyers in affordable housing projects.

Supreme Industries fell 2.21%. On a consolidated basis, Supreme Industries' net profit fell 10.31% to Rs 87 crore on a 6.76% rise in the total income to Rs 1437 crore in Q1 June 2019 over Q1 June 2018. The result was announced during market hours today, 29 July 2019.

Tata Power fell 1.36%. The company announced during market hours today. 29 July 2019, that Tata Power Renewable Energy (TPREL), the Company's wholly owned subsidiary, has received a letter of award (LOA) from Gujarat Urja Vikas Nigam (GUVNL) on 25th July 2019 to develop a 250 MW solar project in Dholera Solar Park of Gujarat. This capacity is in addition to 100 MW awarded by GUVNL earlier at Raghanesda Solar Park in May 2019.

Sandhar Technologies lost 3.63%. The company announced during market hours today, 29 July 2019, that it has entered into a 50-50 joint venture with Hanshin Corporation. The joint venture is being established for manufacturing and selling, futuristic high end data cables for the automotive industry in India which would include Radio Cable, AV/NAVI Cable, GPS/DMB Cable, USB Cable, AVM Cable and others for the four-wheeler segment.

Overseas, most European stocks were trading lower while Asian stocks closed lower on Monday as US-China negotiations resume in Beijing later this week amid low expectations for a major breakthrough.

Meanwhile, Chinese industrial profits fell in June, according the country's National Bureau of Statistics on Saturday. Industrial profits fell 3.1% in June from a year earlier, following a 1.1% gain in May.

US stocks closed at new highs for the S&P 500 and Nasdaq Composite indexes on Friday, as investors welcomed strong corporate earnings, government approval of the T-Mobile and Sprint merger.

On the economic front, the U.S. economy grew at an annualized pace of 2.1% in the second quarter, according to the Commerce Department, slowing from 3.1% in the first three months of the year.

The US Fed will gather on July 30-31 for policy meeting and the U.S. central bank is widely anticipated to cut benchmark rates by at least 25 basis points to combat headwinds from the China-U.S. trade dispute and signs of slowing economic growth outside of the U.S.

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First Published: Jul 29 2019 | 3:37 PM IST

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