MARKET WRAP: Nifty ends at fresh closing high of 11,320; PSU banks rally

Among sectoral indices, the Nifty PSU Bank index settled over 4% higher led by a rise in Bank of Baroda, Andhra Bank and Oriental Bank of Commerce.

12:30 PM

Result impact: Brokerage views on Bharti Airtel, RIL, ICICI Bank

 

Bharti Airtel, Reliance Industries (RIL) and ICICI Bank are among the frontline companies that announced their respective June quarter (Q1FY19) results over the past few days.

 

Here's how leading brokerages have interpreted the numbers.

 

NIRMAL BANG ON ICICI BANK

 

Per se, on the results front, IBL posted NII growth of 9.2 per cent YoY at Rs 61,019 million and a net loss of Rs 1,196 million. We have marginally modified our estimates for FY19/FY20 and retained Buy rating on ICICI Bank, revising our target price to Rs 414 (from Rs 409 earlier), and valuing the stock at 1.6x FY20E P/BV. READ MORE

12:15 PM

Stay braced for a rate hike

 

Corporate results this week are likely to be overshadowed by central bank policy statements. The Reserve Bank of India's (RBI’s) Monetary Policy Committee will release its next policy statement on Wednesday while the US Federal Reserve's Federal Open Market Committee will also release its statement on Wednesday (about 12 hours after the RBI due to the time-difference).

 

The European Central Bank has said last week that it will maintain its schedule to end its Quantitative Easing (QE) programme by December but not raise currently negative rates. READ MORE

12:01 PM

Markets at noon

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	37367.95	37336.85	31.10	0.08
	15218.82	15200.81	18.01	0.12
	15897.90	15912.62	-14.72	-0.09
	16510.94	16450.20	60.74	0.37
	4377.86	4372.13	5.73	0.13

11:45 AM

This agrochemical stock zoomed over 100% in 2018

 

Shares of agrochemicals company Excel Crop Care hit a new high of Rs 4,462, up 7% on Monday, extending Friday’s 7% rally, after the company reported a strong 61% year on year (yoy) growth in standalone net profit at Rs 385 million for the first quarter of the financial year 2018-19 (Q1FY19). The company had a profit of Rs 239 million in the same quarter of the financial year 2017-18 (Q1FY18).

 

Operational revenue during the quarter under review jumped 34.7% yoy at Rs 3,997 million against Rs 2,968 million in the corresponding quarter of previous fiscal. EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin improved 15.8% in Q1FY19 from 13.33% in Q1FY18. READ MORE

11:30 AM

Web exclusive Buy realty stocks only for the long term, say analysts

 

At a time when the S&P BSE Sensex and the Nifty50 indices are scaling new highs, investors in real estate stocks have seen their capital erode thus far in the calendar year 2018 (CY18), with the Nifty realty index – a gauge of the sector’s performance – underperforming the benchmark index during this period by a wide margin. Thus far in CY18, the Nifty Realty index has slipped 24 per cent as compared to around 6 per cent rise in the Nifty50 index till July 25. READ MORE

11:26 AM

MARKET COMMENT BofA expects RBI to keep rates unchanged on Aug 01

We believe that the RBI MPC will wait and watch on Wednesday - with a hawkish tone - after its June hike. If the monsoons are normal, it should be on a long hold. If, however, the east does not get sufficient rains, then the RBI MPC will likely hike 25bps in October, although release of rice buffer stock will help far more than monetary tightening.

On our part, we would watch for the RBI's OMO plans (US$50bn if FPI flows do not revive) with durable liquidity contracting by about US$10bn to defend Rs69/USD. We estimate that the RBI will have to sell US$20bn (US$14bn so far) if FPI flows do not turn around. It also remains to be seen if the RBI assures the FX market that NRI bonds (raising US$30-35bn BAMLe) are a policy option. The MoF has already done so.

11:15 AM

Street signs Outlook improves for Bank Nifty

 

Outlook improves for Bank Nifty The Bank Nifty closed the July series with a gain of over four per cent and made a new lifetime high of 27,661 points. The index gained nearly 2.5 per cent just in the last three days. The rollover was higher than the three-month average, indicating continued momentum in heavyweight private sector banks, said experts.

 

Also, analysts believe that public sector banks seem to have bottomed out. Bank Nifty has to hold above 27,440 zones to extend its momentum towards 28,000. READ MORE

11:00 AM

FPIs throw their weight behind financials and technology stocks in Q1

 

Financials and technology (IT) are the only two sectors to see sizeable overseas investment in the first half of 2018. Consumer staples and discretionary, on the other hand, have seen foreign portfolio investors (FPIs) outflows of more than a billion dollars.

 

On an overall basis, FPIs have been net sellers to the tune of nearly over $500 million during the first half. According to data provided by National Depository Services (NSDL), the financial sector saw net FPI inflows of $1.1 billion during the first half, while the IT space has seen inflows of $1.04 billion. READ MORE

10:45 AM

PSU banks extend rally as Bank of Baroda posts good Q1 results

 

Shares public sector undertaking (PSU) banks have rallied by up to 8% on the National Stock Exchange (NSE) in early morning trade after the Bank of Baroda on Friday reported a more than two-fold jump in net profit at Rs 5.28 billion for the first quarter of 2018-19 (Q1FY19) as provisions for bad loans dropped.

 

The bank had reported a net profit of Rs 2.03 billion in the same quarter of 2017-18. It had reported a net loss of Rs 31.02 billion in last quarter (March 2018). READ MORE

10:32 AM

NEW LISTING TCNS Clothing makes listless debut; falls below issue price

 

TCNS Clothing has made a listless debut on the bourses by opening at par against its issue price of Rs 716 per share on the National Stock Exchange (NSE). However, it opened at Rs 715, a tad below its issue price.

 

It touched a low of Rs 692 on the BSE and Rs 702 on the NSE in intra-day trade so far. A combined 3.23 million equity shares have changed hands on the counter on both the exchanges. READ MORE

10:16 AM

More re-rating ahead for ITC; cigarette volume growth revives in Q1

 

Shares of ITC, which were under pressure until recently due to regulatory challenges faced by its flagship business of cigarettes, hit a 52-week high of Rs 307 during intra-day trade on Friday, before ending 5.2 per cent higher at Rs 302.2, after the company announced its June-2018 quarter (Q1) results late on Thursday. In a surprise, the company reported 1.5 per cent growth in cigarette volumes as against 1-2 per cent decline expected by analysts. READ MORE

10:00 AM

Market Check

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	37419.47	37336.85	82.62	0.22
	15239.17	15200.81	38.36	0.25
	15923.08	15912.62	10.46	0.07
	16537.39	16450.20	87.19	0.53
	4382.87	4372.13	10.74	0.25

9:55 AM

FPIs net inflow at Rs 1,800 cr in equities in July so far

 

Foreign investors have put in over Rs 1,800 crore in the Indian equity markets so far in July after pulling out massive funds in the preceding month. The latest inflow comes after such investors had taken out more than Rs 20,000 crore from the stock market during April-June.

 

According to the latest depository data, foreign portfolio investors (FPIs) pumped in a net sum of Rs 1,848 crore in equities during July 2-27. However, they withdrew Rs 482 crore from the debt market during the period under review.

9:40 AM

After good response to IPO, TCNS Clothing to make debut on bourses today

 

TCNS Clothing is scheduled to get listed on BSE and NSE on Monday. The initial public offer (IPO) of the women's apparel maker was subscribed 5.27 times overall. The Rs 11.25-billion public offer received bids for 5,79,79,780 shares against the total issue size of 1,09,99,828, data available with the NSE showed. READ MORE

9:26 AM

Nifty Bank index hits a record high of 27,801.95. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN()	GAIN(%)
BANK OF BARODA	149.00	137.85	11.15	8.09
ICICI BANK	300.00	293.20	6.80	2.32
PUNJAB NATL.BANK	83.25	82.00	1.25	1.52
ST BK OF INDIA	289.20	286.75	2.45	0.85
IDFC BANK	39.55	39.30	0.25	0.64