MARKET WRAP: Sensex ends 267 pts up; HUL, RIL HDFC twins among key gainers

Among the sectoral indices, the Nifty Auto index settled 1.25% higher led by a rise in the shares of Bajaj Auto, TVS Motos and Maruti Suzuki

10:31 AM

Sebi raises overseas investment limit of AIFs, VCFs to $750 million

Markets regulator Sebi on Tuesday enhanced the overseas investment limit of alternative investment funds and venture capital funds to $750 million from the current $500 million. The decision has been taken in consultation with the Reserve Bank of India, the Securities and Exchange Board of India (Sebi) said in a circular. READ MORE

10:16 AM

Tech Mahindra to gain from 5G roll-out; non-telecom revenues to improve

The Tech Mahindra (TechM) stock has been one of the biggest gainers among large-cap information technology (IT) service companies, up 72 per cent over the past year. With the telecom vertical (43 per cent of its revenues) expected to do well, given the slew of 5G launches by operators globally, the Street believes the company is well placed to sustain the gains. READ MORE

10:04 AM

Market Check

S&P BSE Sensex	35,346.91		-0.09%
Nifty 50	10,682.65		-0.16%
S&P BSE 200	4,599.49		-0.14%
Nifty 500	9,127.10		-0.24%
S&P BSE Mid-Cap	15,364.38		-0.50%
S&P BSE Small-Cap	15,983.35		-0.04%

9:46 AM

UTI AMC stake loses sheen for T Rowe Price

Global asset manager T Rowe Price, which manages over $1 trillion globally, has failed to replicate its success in India. Despite the exponential growth in the domestic asset management sector.

 

Data sourced from its annual reports show the carrying value of its investment in UTI Asset Management Company (AMC) has appreciated at a measly one per cent, compounded annually, since January 20, 2010, when it bought a 26 per cent strategic stake in the domestic asset manager. READ MORE

9:30 AM

WEB EXCLUSIVE Moving from farm jobs to services: How can India hasten the transition?

India’s population today looks like China’s in 1980. A massive, young, rural workforce could turbocharge growth, or torpedo political stability. China solved the problem by going from farm to factory.

For India, entrenched global supply chains and domestic policy failures mean that path will be difficult to follow. Another is more accessible. India is going from the farm to services. That process is already underway. Indeed, our analysis shows the official data may be missing the speed of the transition READ MORE

9:21 AM

Nifty sectoral trend

9:19 AM

BSE Sensex heatmap

9:16 AM

Market at open

 

At 9:15 AM, the S&P BSE Sensex was trading at 35,419, up 40 points while the broader Nifty50 was ruling at 10,712, up 12 points.

9:05 AM

Nomura on PMI numbers

The manufacturing PMI averaged 52.0 in Q2, up from 51.8 in Q1, which suggests a slightly stronger growth momentum. In line with this, we expect GDP growth to remain elevated in Q2 at 7.8% y-o-y (Q1: 7.7%). Given elevated core inflation and strong growth, we expect a 25bp repo rate hike from the Reserve Bank of India in August. However, we believe this cyclical recovery is unsustainable, as the recent tightening of financial conditions, rising oil prices and weaker cyclical global growth momentum are likely to weaken domestic economic activity after September

9:03 AM

SECTOR WATCH Vehicle Financers

Since business cycle of vehicle owners, as determined by vehicle demand and deployment, could look up further in the medium term, the fuel price hike may not prove a deterrent for their cash flows. Consequently, we could see an improvement in deployment levels or the ability to escalate the impact of higher fuel prices, which in turn would continue to make asset quality trends favourable for financiers.

Going by the prior valuation expansion cycle (FY11-14) of vehicle financiers, we learn that growth cycle, rate cycle and credit cycle rarely move together; and that growth and asset quality trends largely define the valuation. Given that both these factors are favourable, we believe that the recent weakness in stock prices, based on concerns over borrowing cost and fuel prices, is clearly a buying opportunity. We stay positive on Cholamandalam Investment & Finance, Mahindra Finance, Shriram Transport and Magma Fincorp.

(Source: IIFL)

 

9:02 AM

MARKET COMMENT Amar Ambani, head of research, IIFL

The gains of Tuesday are less likely to continue for Indian indices at start as global cues remain subdued. After opening on flat note, the main indices managed to stage a rally through the day and closed in the green. Pharma, IT and auto sectors led the pack of upticks. Going forward, rangebound activity may continue in the absence of major cues.

Globally, investors remain cautious as a July 6 deadline looms, when the US is set to impose tariffs on Chinese goods, and China could well retaliate with tariffs of its own on the US. The rupee strengthened to end at 68.57 against the dollar.  US markets will remain closed today due to American Independence Day. Asian shares are trading lower

9:02 AM

Markets at Pre-open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,304.57	-74.03	-0.21
S&P BSE SENSEX 50	11,195.28	-19.93	-0.18
S&P BSE SENSEX Next 50	32,005.80	+22.19	+0.07
S&P BSE 100	10,966.90	-15.48	-0.14
S&P BSE Bharat 22 Index	3,305.76	+4.37	+0.13

8:56 AM

Technical calls by HDFC Securities

 

Buy Tata Elxsi

 

CMP: Rs 1,367

Target: Rs 1,430

Stop loss: Rs 1,330

 

Appreciation of the dollar against rupee has been in favor of the IT sector. Rupee registered new all-time low against Dollar in the recent past, which could auger well for the IT sector in the coming times. Midcap IT Company, Tata Elxsi broke out from the crucial resistance of 1200 on the long term monthly chart during April 2018. In the recent correction of the Market, Stock remained resilient and continued to extend gains towards new highs. Stock price has been trading above all important moving averages. Oscillator setup has also been bullish for the counter. We recommend buying Tata Elxsi for the upside target of 1430, keeping SL at 1330. Click here for more

8:51 AM

Top trading ideas from Prabhudas Lilladher

 

BUY ASHOK LEYLAND

CMP: Rs 129.50

TARGET: Rs 144

STOP LOSS: Rs 123

 

The stock has witnessed a decent correction from the peak of 165 and currently has now indicated signs of bottoming out at around 123 levels and has produced a positive candle pattern in the daily chart to anticipate a further rise in the coming days. The RSI also has showed a trend reversal from the highly oversold zone to signal a buy and has improved the bias sentiment. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 144 keeping a stop loss of 123. READ MORE

8:45 AM

Nifty outlook by Prabhudas Lilladher

 

Market is gradually picking up momentum however Nifty still needs to cross the hurdle of 10,700-10,730 on closing basis. Pharma sector seems to be getting ready for new round of momentum along with Auto now showing hopes of revival. Maruti, Bajaj Auto, etc. look positive from here on. The support for the day is seen at 10,650 while resistance is seen at 10,760. Mid cap sector too, is ready for a bounce.