Stocks end with modest losses

Key benchmark indices settled with modest losses as gains in index heavyweight ITC helped cushion steep losses triggered by slide in index heavyweights Infosys and Reliance Industries. The barometer index, the S&P BSE Sensex, fell 70.85 points or 0.20% to settle at 35,574.55. The Nifty 50 index fell 20.15 points or 0.19% to settle at 10,749.75. IT stocks were mostly lower. Realty stocks dropped.

Trading was volatile due to mixed global cues. Asian equities fell while European stocks rose ahead of a US deadline to impose tariffs on Chinese imports. The indices hit fresh intraday high in early trade. After some range bound trading, the indices declined and hit fresh intraday low in mid-afternoon trade.

The Sensex fell 70.85 points or 0.20% to settle at 35,574.55. The index hit high of 35,748.26 and low of 35,517.79 in intraday trade.

The Nifty 50 index fell 20.15 points or 0.19% to settle at 10,749.75. The index hit high of 10,786.05 and low of 10,726.25 in intraday trade.

Among secondary barometers, the BSE Mid-Cap index fell 0.71%. The BSE Small-Cap index fell 0.40%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1053 shares rose and 1557 shares fell. A total of 146 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Consumer Durables index (down 2.78%), the S&P BSE Realty index (down 1.7%), the S&P BSE IT index (down 1.6%) underperformed the Sensex. The S&P BSE FMCG index (up 1.03%), the S&P BSE Auto index (up 0.15%) and the S&P BSE Bankex (up 0.14%) outperformed the Sensex.

ITC (up 2.97%), Bajaj Auto (up 2.45%), Asian Paints (up 2.35%), Coal India (up 2.27%) and Mahindra & Mahindra (up 1.34%) were the major Sensex gainers.

Vedanta (down 3.09%), Tata Steel (down 2.71%) and Sun Pharmaceutical Industries (down 2.31%) were the major Sensex losers.

IT stocks were mostly lower. Infosys (down 4.47%), Hexaware Technologies (down 3.22%), MindTree (down 1.03%), Persistent Systems (down 1.05%), Tech Mahindra (down 0.82%), MphasiS (down 0.29%) edged lower. HCL Technologies (up 0.51%), Oracle Financial Services Software (up 1.77%), Wipro (up 0.86%) and TCS (up 0.64%) rose.

Yes Bank gained 3.96% after the bank announced that it has received the final regulatory approval (Certificate of Registration) from the Securities & Exchange Board of India (Sebi) to commence its mutual fund business. This approval is subsequent to the Reserve Bank of India's (RBI) approval granted to Yes Bank to sponsor a mutual fund followed by Sebi's in-principle approval received subsequently. The announcement was made after market hours yesterday, 4 July 2018.

Reliance Industries (RIL) lost 2.53%. ​Mukesh Ambani at the company's annual general meeting today, 5 July 2018, unveiled 'Jio GigaFiber', its much-awaited fibre-to-the-home (FTTH) broadband services. JioGigaFiber broadband will to come with a set top box for TV. It will have enabled voice command feature for TV. Besides, it will also have a TV calling feature. The company, meanwhile, launched JioPhone 2 with advanced features. The mobile phone will be available alongside the JioPhone already available in the market. JioPhone is a feature phone launched by Reliance Jio last year with an effective price of 'zero'.

The company said it is targeting 100 million users on JioPhone in shortest time. JioPhone generates more than 20 crore voice commands every month, Isha Ambani said. Ambanis said the company will launch three of the world's most popular apps Facebook, Whatsapp and Youtube on Jiophones. The company also announced JioPhone 2 with advanced features. The phone will be available for Rs 2,999 effective 15 August 2018.

Meanwhile, RIL during trading hours today, 5 July 2018, said that Reliance Brands, a subsidiary of the company, has purchased 12.5% equity stake in Future101 Design (Future101) for Rs 9.50 crore. The acquisition of minority stake is in the nature of strategic investment. Future101, incorporated in July 2013 is engaged in manufacturing, distribution and sale of luxury apparels, etc. in India. Future101 belongs to a similar industry as Reliance Brands.

RIL expects growth in this sector and value creation from this investment. Future101 reported annual turnover of Rs 22.18 crore, Rs 20.85 crore and Rs 17.11 crore in FY 2017-18, FY 2016-17 and FY 2015-16, respectively. No regulatory approvals were required for the said acquisition of shares. The investment does not fall within related party transaction and none of RIL's promoter/promoter group/group companies have interest in Future101.

Tata Motors fell 2.06%. Group CFO, PB Balaji, issued a statement during trading hours today, 5 July 2018, that Jaguar Land Rover (JLR) and Tata Motors have always maintained that the uncertainties from Brexit are avoidable and the business seeks clarity to ensure that industry takes timely and right decisions to manage the transition. Additionally, JLR needs free and full access to the single market beyond transition to remain competitive which is in the best long term interests of the United Kingdom.

The recent statement from JLR only reaffirms this position that a Brexit which increases bureaucracy, reduces productivity and competitiveness of the UK Industry is in no-one's interest. As this worst case Brexit scenario is just one of the many possibilities, the company's plans which were shared at the JLR analyst meet in the UK did not factor them and the firm continues to stand by what was shared. In the meanwhile, JLR will continue to work with the government to secure the right free trade deal for the country, economy and industry.

Realty stocks dropped. DLF (down 2.37%), Indiabulls Real Estate (down 0.37%), Housing Development and Infrastructure (down 1%), Unitech (down 0.71%), Godrej Properties (down 1.51%), Prestige Estates Projects (down 2.65%) and Oberoi Realty (down 2.64%) declined. D B Realty (up 0.53%) and Sobha (up 1.52%) rose.

Biocon shed 0.34%. The company has received the EU GMP certification for its Sterile Drug Product manufacturing facility in Bangalore, which was inspected by the European agencies in March 2018. This facility is used for the manufacture of Biocon's portfolio of biosimilars. The announcement was made after market hours yesterday, 4 July 2018.

VA Tech Wabag rose 0.85%. The company announced that the meeting of the Board of Directors of the company is scheduled to be held on 9 July 2018, consider and approve the fund raising proposal. The announcement was made after market hours yesterday, 4 July 2018.

Future Lifestyle Fashions (FLFL) gained 3.34%. KOOV, the leading e-commerce fashion business, announced that it has reached a conditional agreement with Future Lifestyle Fashions (FLFL), to subscribe for up to a 29.9% stake in Koovs. The announcement was made after market hours yesterday, 4 July 2018.

Overseas, European shares rose as auto sector surged on a report of tariff talks between the US and Europe. Most Asian markets declined as investors searched for direction ahead of a deadline when tariffs from the US and China are due to be implemented.

A looming 6 July 2018 deadline is set to see the US impose a 25% tariff on $34 billion worth of Chinese goods from more than 800 product categories. China has also announced that it will retaliate with duties on the same value of US products. US stock market was shut on Wednesday for the Independence Day holiday.

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