Sensex ends 85 points lower at 37,522; RBI hikes repo rate by 25 bps

Among sectoral indices, the Nifty PSU Bank index ended 0.52% higher led by IDBI Bank and Punjab National Bank, while Nifty Auto index settled 0.76% lower due to fall in Exide and Motherson Sumi.

9:53 AM

Anand Rathi on Escorts

Supported by expected subsidies from various state governments and given the forthcoming elections, we expect the tractor industry to peak in FY19; growth in FY20 would be constrained. The Andhra Pradesh, Karnataka and Assam governments have announced subsidy schemes; more state governments may do so.

We expect revenues to clock an 11% CAGR over FY18-20. At the expected 15% EBITDA CAGR, we expect earnings to register a 19% CAGR, leading to an EPS of `57.7 (excl. Treasury stock). We continue to assign 16x to the stock and rate it a Hold.

9:51 AM

Equinomics Research recommends BSE Ltd

Small and mid cap space (SMC) is always highly cyclical in the stock markets. The reality of this space is that severe downturn in the SMC space punishes often both inferior as well as quality stocks. In our view, the smart investing is developing strong confidence levels and keep accumulating quality SMC stocks at attractive valuations during the bearish phase of SMC segment. 

In our learning, this strategy is always proven to be a solid wealth creating strategy in the long term (2 to 3 years). We firmly believe that BSE is one such stock. Why? Because it is rare to find a stock with all relevant attributes: Growth stock; solid balance sheet with lot of cash; high dividend yield; and stock is down 25% (adjusted for dividend) from the 52-week high

9:44 AM

Stocks in news

RIL wins arbitration case against govt's claim of illegal gas production

Lakshmi Vilas Bank: The bank has revised the marginal cost of funds based lending rate (MCLR) with effect from August 1.

NBCC is said to be the highest bidder for HSCC, EPI.

Bank of Baroda closed three foreign branches in Oman and Bahrain.

Tata Motors unit to stop manufacturing operations in Thailand; to use a distribution model.

Orient Refractories approved amalgamation RHI India and RHI Clasil with self.

Jindal Steel & Power: JSPL bags 1 lakh tonne order in first-ever global tender for rails floated by Indian Railways.

(Source: Nirmal Bang)

9:40 AM

After a rally in CY18, experts see time-wise correction in IT stocks

 

Most information technology (IT) companies that have announced their earnings for the June 2018 quarter and have met analysts’ expectations.

 

Going ahead, even though analysts remain bullish on IT stocks, they caution against the sharp rally seen thus far in CY18 and the valuations at which some of these stocks trade. A time-wise correction is possible in these stocks, experts suggest. READ MORE

9:28 AM

MARKET COMMENT Amar Ambani, head of research, IIFL

 

The RBI is mostly likely to maintain a status quo on policy rates and investors will be all ears to the Monetary Policy Committee’s (MPC) commentary. Tightening liquidity, a depreciating rupee and rising inflation may be a cause for concern for the MPC.  India's fiscal deficit has reached 68.7pc of its FY19 target, at USD 62.57 bn in the April-June quarter.

 

Eight core sectors expanded to a 7-month high of 6.7 pc in June, as against 4.3 in May. The growth was led by strong performance in cement, coal and refinery sectors.  The outlook is a cautious start. US stocks ended higher. Asian shares are trading positive. Benchmark indices on Tuesday closed at record highs again, maintaining the positive momentum, despite a weak session earlier. Apollo Tyres, Emami, Pidilite and Exide Industries will announce their results.

9:21 AM

Sectoral Trend

9:20 AM

Top Sensex gainers and losers

9:18 AM

Markets at open

At 9:18 am, the S&P BSE Sensex was trading at 37,629, up 22 points while the broader Nifty50 index was ruling at 11,365, up 11 points

9:08 AM

Nifty outlook by HDFC Securities

 

Nifty is in a continuation of its uptrend and yesterday was the 7th session on the trot, when advances decline ratio remained positive, phenomenon, which the markets have not seen earlier in 2018. On the upside immediate resistance for Nifty is seen at 11,395 followed by 11,500. As far as support is concerned 11,200 has become strong base for the short term.

9:03 AM

Markets at pre-open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	37,732.98	+126.40	+0.34
S&P BSE SENSEX 50	11,902.30	+19.59	+0.16
S&P BSE SENSEX Next 50	33,784.73	+96.48	+0.29
S&P BSE 100	11,647.11	+21.26	+0.18
S&P BSE Bharat 22 Index	3,519.87	+12.39	+0.35

8:58 AM

Technical calls by HDFC Securities

 

Buy RBL Bank (573)

Target: Rs 615

Stop loss: Rs 554

 

Stock price broke out from bullish inverse head and shoulder pattern on the week ended 15th June 2018. Stock price has been forming higher tops and higher bottom formation on the daily and weekly charts. Short term moving averages are trading above long term moving average, indicating positional uptrend. We recommend buying RBL Bank for the upside target of 615, keeping SL at 554. 

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8:54 AM

Top trading ideas by Religare Broking

 

Godrej Industries Limited

Rec: BUY

Last Close: Rs 648.65

Initiation range: Rs 640-645

Target: Rs 675

Stop loss: Rs 628

 

Godrej Industries is one of the strong counters in FMCG space. It’s been consolidating in a broader range for last 10 months or so while holding firmly above the support zone of 100 EMA on weekly chart. Currently, it’s trading on the verge of breakout from the same. We advise traders to use this buying opportunity and create fresh longs as per the mentioned levels.

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8:50 AM

Today's picks

 

Axis Bank

Current price: Rs 550

Target price: Rs 540

 

Keep a stop at Rs 556 and go short. Add to the position between Rs 542 and Rs 544. Book profits at Rs 540.

 

Tech Mahindra

Current price: Rs 681

Target price: Rs 692

 

Keep a stop at Rs 675 and go long. Add to the position between Rs 688 and Rs 690. Book profits at Rs 692. READ MORE

8:46 AM

Top trading ideas by Prabhudas Lilladher

 

BUY BAJAJ AUTO

CMP: Rs 2,700

TARGET: Rs 2,950

STOP LOSS: Rs 2,600

 

The stock has witnessed a great erosion from the peak of 3194 to bottom out at around 2605 levels and is currently in a revival mode with good potential to rise further strongly in the coming days. The chart looks very attractive for an upward move and with the RSI indicating a trend reversal from the oversold zone it has signaled a buy and has improved the bias. With tremendous volume participation witnessed, we recommend a buy in this stock for an upside target of 2950 keeping a stop loss of 2600.

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8:43 AM

Nifty outlook by Prabhudas Lilladher

 

Nifty has rallied from 10,950 levels gaining almost 400 points and Bank Nifty also has gained almost 1,000 points from the low made at 26700 in the last two weeks and some exhaustion can be anticipated in the near future. Stocks are moving in rotation and reaching new zone levels. However, the support for the day is seen at 37,360/11,280 while resistance is seen at 37,820/11,420. Bank Nifty would have a range of 27,520-28,000.