MARKET WRAP: Indices end higher ahead of Budget 2019, Nifty below 11,950

All that happened in markets today.

9:02 AM

Market at pre-open

9:01 AM

Market at pre-open

8:57 AM

Market outlook by HDFC Securities | Deepak Jasani, head of retail research

Indian markets could open mildly higher Thursday following record breaking US markets on Wednesday and positive Asian markets this morning. US markets would be shut on Thursday due to independence day.

Domestic indices ended with marginal gains on Wednesday. It was the third consecutive session of gains for the Nifty. Traders were cautious ahead of the presentation of the Economic Survey on Thursday, 4 July 2019, and that of Union Budget the following day.

Sectors and stocks to watch

 

In India markets could open mildly higher. PSU and FMCG indices could do well. On upside, Nifty could face resistance at 11,962-12,000 band while 11,831-11,885 band remains a support. Among stocks under coverage, SBI, NMDC, Brigade, SBI Life, Dabur, L&T, MCX could do well.

 

8:55 AM

FMCGs say Q1 growth to remain dull on subdued consumption, liquidity crunch

Some of the country’s leading consumer goods companies have indicated in the just-released quarterly updates that the demand environment remains sluggish in the April-June period. The statements come after the sector saw its worst slowdown in two years in the March quarter. Many were hoping for a revival in sentiment following the general elections, but that isn’t the case as Godrej Consumer (GCPL) and Marico on Wednesday said demand conditions were challenging in Q1, impacted by a general consumption slowdown. READ MORE

8:46 AM

Multiple triggers could boost Axis Bank's return ratios, say analysts

Outperforming closest peer ICICI Bank, the stock of Axis Bank has gained a sharp 30 per cent since the start of 2019, when the new Managing Director and Chief Executive Officer Amitabh Chaudhary took charge. Analysts highlight multiple triggers which could boost the bank’s return ratios going ahead. HDFC Securities’ Darpin Shah and Aakash Dattani believe that improving asset quality (with rising coverage), better risk practices, focus on high-yielding retail products, and cost consciousness will drive earnings. READ MORE

8:40 AM

Stocks to watch

IndiaMART: IndiaMART InterMesh is slated to debut on the bourses today. The initial public offering (IPO) of the company, which was opened for subscription during June 24-26, was subscribed 36.21 times. The price band of the offer was fixed at Rs 970 - Rs 973 per share.

 

Cox & Kings: Lenders have turned cautious after Cox & Kings defaulted on commercial paper of Rs 200 crore in the last few days and are looking at ways to address the tour operator’s debt issues. READ MORE

8:37 AM

Asset monetisation: Sadbhav group engineers 1.7 times return on investment

The much-awaited monetisation of assets has taken place at Sadbhav group. Sadbhav Infrastructure Projects (SIPL), a subsidiary of Sadbhav Engineering (SEL), will sell nine operational road projects to IndInfravit Trust, which will provide the funds needed for deleveraging. This will also help it infuse equity, fund new projects, and boost new order wins. READ MORE

8:34 AM

Bond and currency markets differ on where interest rates are headed

There is a divergence between what the currency market thinks about interest rates and what the bond market perceives where rates are headed. While the bond market is relatively conservative about their interest rate expectations, the currency market seems to be projecting that interest rates should be much sharper. However, this could be an anomaly caused by local factors, which should correct in the coming months, experts say. READ MORE

8:29 AM

Overseas investors can't ignore India if they seek higher returns: Manulife

Overseas investors chasing higher returns can’t ignore India’s stocks as its economy ranks among the world’s strongest and bears the fruit of government-led reforms, according to Manulife Asset Management.
 

“As China faces uncertainty after the trade war, money now needs to find a market that is large and growing, and India is among them,” Rana Gupta, managing director of Indian equities at Manulife Asset Management Singapore, said in an interview in Mumbai.  READ MORE

8:27 AM

SBI MF, HDFC MF and ICICI MF gain the most in terms of absolute assets

Fund houses facing trouble over their debt exposures continued to see a sharp drop in assets in the June quarter. Their larger peers, though, increased market share as investors sought larger-sized schemes for liquidity comfort. IDBI Mutual Fund (MF) and DHFL Pramerica MF saw the sharpest de-growth in assets. READ MORE

8:24 AM

Bulk deal on NSE as on Wednesday

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8:22 AM

FII/FPI & DII trading activity on NSE, BSE and MSEI

8:22 AM

Economic Survey FY19 coming today, to chart out Modi 2.0 reform road map

Ahead of Modi government's maiden Budget in the second term, an economic survey projecting the state of health of the country's economy and outlining the challenges will be tabled in Parliament on Thursday.

 

The survey prepared by Chief Economic Adviser Krishnamurthy Subramanian is likely to flag headwinds that the economy might face in its pursuit to become the world's fifth largest economy. READ MORE

8:18 AM

India's market turnover among lowest globally, shows World Bank data

Indian market volume vis-à-vis the size of the market is the lowest amongst major global economies, shows World Bank data for 2018. The so-called turnover ratio (cash market turnover divided by market capitalisation) for India stands at 58. In comparison, the ratio stands at 109 for the US, 174 for South Korea and 206 for China. READ MORE

8:15 AM

Ramp-up in capacity to keep fizz intact for Varun Beverages stock

Strong earnings visibility after the acquisition of PepsciCo India’s franchise rights has helped the Varun Beverages (Varun) stock gain about 20 per cent in the last six months, sharply outperforming the Nifty FMCG index. The latter lost 1 per cent during the same period.

 

On Wednesday, the stock hit its all-time high of Rs 969.9 apiece. Yet, the stock still has 15-20 per cent upside potential on the back of a likely improvement in return on equity (RoE).  READ MORE