MARKET WRAP: Nifty ends above 11,000 as PSU banks gain; SBI up 3%

Benchmark indices rose on Tuesday as PSU Banks such as SBI, Bank of Baroda gained

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Benchmark indices rose on Tuesday as PSU Banks such as SBI, Bank of Baroda gained on report that six banks, including PNB, may get capital infusion of Rs 80 billion but weakness in consumer stocks including Hindustan Unilever capped gain

Around six public sector banks (PSBs), including the PNB that has been hit by the Nirav Modi scam, might get a capital infusion of about Rs 80 billion from the government, The Economic Times on Tuesday reported, while citing an unnamed senior finance ministry official.

The S&P BSE Sensex ended at 36,520, up 196 points while the broader Nifty50 index settled at 11,008, up 71 points.

Among sectoral indices, Nifty PSU Bank index rose over 3.5% with Union Bank of India, Allahabad Bank, Bank of Baroda, PNB gaining in the range of 6 per cent - 8.5 per cent.

Shares of oil companies and airlines also jumped, with the Nifty Energy index rising as much as 1.6 per cent on lower oil prices. Oil prices extended losses on Tuesday after a more than 4 per cent slide to hit a three-month low on Monday.

Shares of Hindustan Petroleum Corp and Indian Oil Corp gained 6 per cent and 4 per cent, respectively and were the top gainers on the NSE index.

Meanhwhile, consumer goods maker Hindustan Unilever dropped as much as 3.5 per cent after posting June-quarter results below market expectations.

GLOBAL MARKETS

World stocks recovered some ground on Tuesday as oil prices stabilised, while the dollar edged lower and most other markets were subdued before Federal Reserve Chair Jerome Powell testifies to the US Congress.

MSCI’s world equity index, which tracks shares in 47 countries, was broadly unchanged, with energy companies in Europe and Asia recovering ground from early losses caused by the previous day’s turbulence in commodity markets.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.4 per cent, snapping two days of gains amid concern over growth in China.

Chinese stocks were among the biggest losers in Asia on Tuesday, falling 1.7 per cent.

(with Reuters inputs)

3:42 PM

Nifty PSU Bank index settles 3.86% higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN()	GAIN(%)
UNION BANK (I)	80.65	74.40	6.25	8.40
BANK OF BARODA	120.75	113.05	7.70	6.81
PUNJAB NATL.BANK	78.65	73.85	4.80	6.50
ALLAHABAD BANK	42.15	39.65	2.50	6.31
BANK OF INDIA	81.90	77.50	4.40	5.68

See More

3:36 PM

Nifty sectoral gainers of the day

3:34 PM

BSE Sensex: SBI, Sun Pharma, Axis Bank among top gainers of the day, HUL top loser

3:32 PM

Market at close

The S&P BSE Sensex ended at 36,520, up 196 points while the broader Nifty50 index settled at 11,008, up 71 points.

3:15 PM

Ashok Leyland first-quarter profit tops expectations

Ashok Leyland reported a better-than- expected first quarter net profit on Tuesday, driven by higher sales in its medium and heavy commercial vehicles business.

Net profit rose to Rs 3.70 billion ($54.13 million) in the quarter ended June 30 from Rs 1.11 billion a year ago. The year-earlier quarter included a foreign exchange loss of Rs 26.7 million.

3:00 PM

NCLAT stays voting by Bhushan Power & Steel lenders on finalising bids

The NCLAT today stayed the meeting of Committee of Creditors (CoC) of Bhushan Power and Steel Ltd to vote on finalisation of bids of the debt-ridden firm.

The National Company Law Appellate Tribunal (NCLAT) also pulled up the Resolution Professional (RP) of the company, Mahendra Kumar Khandelwal, for not following its previous orders to allow the representatives of operational creditors to attend the meeting. READ MORE

2:45 PM

NSE registers record volumes as Gift City gains popularity among investors

India’s “offshore” trading platform International Financial Services Center (IFSC), Gift City is gaining popularity among investors thanks to tax sops.

The daily volume of the National Stock Exchange (NSE) IFSC crossed the $500-million mark for the first time, on July 13. A total of 46,710 index contracts were traded during the day—the highest-ever since NSE launched the special platform for Gift City in June 2017. READ MORE

2:30 PM

Relief for India? US to consider waivers on Iran sanctions, says Mnuchin

The United States in certain cases will consider waivers for countries that need more time to wind down imports of oil from Iran as it seeks to avoid disrupting global oil markets while reimposing sanctions against Tehran, US Treasury Secretary Steven Mnuchin said.

"We want people to reduce oil purchases to zero, but in certain cases, if people can't do that overnight, we'll consider exceptions," Mnuchin told reporters on Friday, clarifying some US officials' comments that there would be no exemptions. Mnuchin's comments were embargoed for release on Monday as other US officials were expected to begin talks in India this week on cutbacks in Iranian oil supplies. READ MORE

2:15 PM

PSU banks gain on government capital infusion report

Shares of public sector undertaking (PSU) banks were in focus with Nifty PSU Bank index gaining nearly 2% on media report that six banks, including PNB, may get capital infusion of Rs 80 billion.

Union Bank of India, Bank of Baroda, Oriental Bank of Commerce, Bank of India, Allahabad Bank, Canara Bank, Punjab National Bank (PNB), Andhra Bank and Syndicate Bank were up in the range of 4% to 6% on the National Stock Exchange (NSE). State Bank of India (SBI) and IDBI Bank were up 1% each READ MORE

2:00 PM

Market Check

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
BSE SENSEX	36357.81	36323.77	34.04	0.09
BSE 500	14718.92	14649.37	69.55	0.47
BSE MID-CAP	15272.48	15053.77	218.71	1.45
BSE SMALL-CAP	15865.54	15790.00	75.54	0.48
S&P BSE LARGECAP	4242.12	4229.00	13.12	0.31

1:45 PM

Federal Bank rebounds from 52-week low post Q1 results; stock up 13%

Federal Bank has moved higher by 13% to Rs 83.90 on the BSE in noon deal after the private sector lender said its assets quality in June quarter (Q1FY19) remain stable as compared to March quarter.

The stock rebounds 14% from its 52-week low of Rs 73.60, touched on the BSE in early morning trade, before the announcement of Q1 results. READ MORE

1:30 PM

Top BSE500 gainers

COMPANY	PRICE()	CHG()	CHG(%)	VOLUME
FEDERAL BANK	83.50	9.40	12.69	2629665
REL. COMM.	13.28	1.25	10.39	7267171
M R P L	79.20	5.45	7.39	121196
JAIN IRRIGATION	83.10	4.95	6.33	761052
CG POWER & INDU.	58.20	3.45	6.30	366518

» More on Top Gainers

1:15 PM

Can Yes Bank emulate its peers' success in the mutual fund business?

In early July, Yes Bank announced that it had received the go-ahead from Securities and Exchange Board of India (Sebi) to start its mutual fund operations. Yes AMC will become the 43rd fund house to join the MF industry.

While there are several AMCs currently operating in India, the top 5 AMCs account for 57 per cent of the industry’s AUM. Despite the huge growth potential, there are only a few AMCs that have managed to gain a respectable market share. However, Yes AMC may have a slight edge thanks to the bank-backing. Among the top 5 AMCs in the industry, three happen to be bank-backed AMCs which together account for 36 per cent of industry assets. READ MORE

1:00 PM

WEB EXCLUSIVE Auto sector preview: High fuel prices to potentially impact growth

Auto sales in India have been on the fast lane since the implementation of goods and services tax (GST) in July 2017, thanks to an increase in consumer spending coupled with exciting launches by the industry and a buoyant rural economy. Automobile sales volumes have grown steadily in the last three quarters, albeit on a lower base. However, renewed interest by buyers and original equipment manufacturers (OEMs) has led to hefty expectations on Dalal Street with Nifty Auto Index being one of the top performing indices of FY18.

In comparison to the financial year 2018-19 (FY18), FY19 has got off to a steady start with Q1 automobile sales showing a 15 per cent year-on-year (YoY) growth, even if on a low base (anticipation of GST), and quarterly volumes growing at 6 per cent. READ MORE

12:46 PM

Six PSBs, including PNB, may get capital infusion of Rs 80 billion: Report

Around six public sector banks (PSBs), including the Punjab National Bank (PNB) that has been hit by the Nirav Modi scam, might get a capital infusion of about Rs 80 billion from the government, The Economic Times on Tuesday reported, while citing an unnamed senior finance ministry official. These banks are likely to fall short of regulatory capital requirements.

The official told the financial daily that some banks that have issued additional tier 1 capital bonds, with the interest payments being due, would not be allowed to make the required payments if they didn't meet the regulatory capital norms. The government, however, cannot allow PSBs to default on such payments as that would impact their rating, the official added. READ MORE

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First Published: Jul 17 2018 | 8:15 AM IST