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Sensex, Nifty bounce back

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Capital Market
Last Updated : Jul 02 2019 | 2:31 PM IST

The Sensex and the Nifty bounced back and were trading near the day's high in the afternoon trade. At 13:26 IST, the barometer index, the S&P BSE Sensex, was up 7.03 points or 0.02% at 39,693.53. The Nifty 50 index was up 4.85 points or 0.04% at 11,870.45 .

The S&P BSE Mid-Cap index was up 0.08%. The S&P BSE Small-Cap index was down 0.07%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 991 shares rose and 1266 shares fell. A total of 151 shares were unchanged.

Overseas, most shares in Europe and Asia were trading lower on Tuesday, as investors weighed the tariff truce between the U.S. 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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Meanwhile, OPEC agreed on Monday, 1 July 2019, to extend oil supply cuts until March 2020 as the group's members overcame their differences in order to prop up the price of crude amid a weakening global economy and soaring U.S. production.

Back home, UPL (up 3.30%), NTPC (up 0.98%), Bharat Petroleum Corporation (up 0.89%), Zee Entertainment Enterprises (up 0.63%) and Indiabulls Housing Finance (up 0.47%) advanced.

Sun Pharmaceutical Industries (down 3.19%), Bajaj Auto (down 1.30%), Dr. Reddy's Laboratories (down 1.16%), ICICI Bank (down 0.81%) and Axis Bank (down 0.80%) declined.

Tata Motors was down 2.38%. 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.

Hero MotoCorp was down 1.19%. The company reported 12.49% fall in 2-wheeler sales to 6.16 lakh units in June 2019 over June 2018. The announcement was made after market hours yesterday, 1 July 2019.

HCL Technologies was down 0.02%. HCL Technologies confirmed the official close at the end of June 2019 the previously announced acquisition of select IBM products for security, marketing, commerce, and digital solutions. As part of the deal's close, HCL takes full ownership of the research and development, sales, marketing, delivery, and support for AppScan, BigFix, Commerce, Connections, Digital Experience (Portal and Content Manager), Notes Domino, and Unica. The announcement was made after market hours yesterday, 1 July 2019.

Coal India was up 0.78%. 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.

Bharti Airtel was up 1%. Tata Teleservices Maharashtra (TTML) was up 4.75%. 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.

Yes Bank was down 5.73% after the media reported that a Mumbai-based Radius Developers has defaulted on scheduled interest payments on a Rs 1,200-crore loan to the private lender. 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.

ONGC was up 2.24%. ONGC has discovered over 230 million tonnes of in-place oil reserves in the last three years, Petroleum Minister Dharmendra Pradhan reportedly said Monday. 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 that it has 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.

Realty stocks were mixed. The S&P BSE Realty index down 1.78%.

Peninsula Land (up 9.24%), Prestige Estates Projects (up 2.36%), Parsvnath Developers (up 1.69%), Mahindra Lifespace Developers (up 1.01%), Sobha (up 0.48%), Omaxe (up 0.18%) and DLF (up 0.13%) advanced.

Godrej Properties (down 9.77%), Housing Development and Infrastructure (HDIL) (down 3%), D B Realty (down 2.52%), Oberoi Realty (down 1.87%), Indiabulls Real Estate (down 1.51%), Phoenix Mills (down 1.34%), Sunteck Realty (down 1.08%) and Anant Raj (down 0.47%) declined.

On the macro 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.

Meanwhile, 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.

Further, the price of subsidised LPG was cut by Rs 3.02 per 14.2-kg cylinder to Rs 494.35 in Delhi. The rate cut has come after four monthly increases since March. The price of non-subsidised LPG was also cut by Rs 100.5 to Rs 637.

Maharashtra CM Devendra Fadnavis called the intense rainfall in Mumbai since the last few days as unprecedented and said that the city had received a month's rainfall in the last three days. The CM is reported to have taken stock of the situation today at the Brihanmumbai Municipal Corporation (BMC) office after the Maharashtra government declared a public holiday for schools, colleges and offices for Tuesday owing to the heavy downpour. The heavy rainfall impacted the services of Mumbai local trains on all three lines - Central, Western and Harbour - as water-logging was reported on railway tracks at several stations. Media reported that over 20 people have been killed in rain-related incidents in Mumbai and Pune.

Heavy to very heavy rainfall at a few places with extremely heavy rainfall at isolated places is very likely over Vidarbha and east Madhya Pradesh, the India Meteorological Department (IMD) said on Tuesday. Madhya Pradesh, Maharashtra, Marathwada and Odisha are also predicted to receive heavy downpour today, the weather department said. Thunderstorm accompanied by lightning at isolated places are very likely over parts of Jharkhand, the IMD said.

Rough to very rough sea conditions (with wind speed reaching 40-50 kmph) are likely to prevail over westcentral & adjoining southwest Arabian Sea, along & off Gujarat coast, along & off Andaman & Nicobar Islands, north & adjoining central Bay of Bengal and adjoining coastal areas of West Bengal, Odisha and Andhra Pradesh. Fishermen are advised not to venture into these areas.

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First Published: Jul 02 2019 | 1:29 PM IST

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