Sensex, Nifty settle at record closing highs; Nifty Bank ends above 25,000

All that happened in Monday's trade

11:12 AM

Key risk factors for the markets

Market valuations have risen considerably over the past few quarters both in the frontline indices like Sensex or Nifty and in the midcap/ smallcap indices. The current equity market valuations are factoring in a robust recovery in earnings growth. Retail investors are worried whether the valuations would sustain at current levels. This depends on how soon and robust the earnings recovery is and how sustainable it will be.

 

While optically, the markets may seem to be expensive going by historical standards, bulls say that price-to-earnings (P/E) multiples are inversely correlated with the cost of capital. 

 

Click here to find the key risk factors for the markets

 

10:45 AM

At 10:45 am, S&P BSE Sensex was trading at 32,420, up 110 points while the broader Nifty50 index was ruling at 10,038, up 24 points.

In broader markets, erased some gains to turn flat with BSE Midcap up 0.06% and BSE Smallcap up 0.13%.

10:32 AM

JBF Industries extends fall on credit rating downgrade

JBF Industries dipped 11% to Rs 199 on BSE in early morning trade, extending its Friday’s 13% fall, after the rating agencies downgraded the rating of the company on delays in servicing its debt obligations by JBF group. In past one week, the stock slipped 28% from Rs 278, against 0.48% rise in the S&P BSE Sensex.

10:19 AM

HSBC Holdings on Monday said profit rose 5% in the first half of the year, beating analyst estimates, and announced its third share buyback in the past year on the back of a growing capital base.

 

Pretax profit reached $10.2 billion in the six months through June, from $9.7 billion in the same period a year earlier, HSBC said in a statement. 

 

HSBC also announced an up to $2 billion share buyback, as it uses excess capital to offset the dilutive effect of shares paid out as dividends. It completed a previously announced $1 billion buyback in April.

 

9:55 AM

Nifty Pharma was the top sectoral loser dragged by losses in Sun Pharma, Dr Reddy's, Glenmark Pharma and CIpla

9:46 AM

Nifty Bank trades in positive post Friday's loss led by gains mostly in private lenders. ICICI Bank, Federal Bank, IndusInd Bank and HDFC Bank gained between 0.2%-1% in early morning deals. Nifty Pvt Bank index was up 0.4% while the Nifty PSU Bank index fell 0.3%.

9:35 AM

Asian Markets recover

Asian shares turned positive after solid Chinese data on Monday following a lacklustre start, while the dollar edged up but remained capped by US political uncertainty.

 

MSCI's broadest index of Asia-Pacific shares outside Japan reversed early losses to rise 0.1%.

 

Chinese shares rose, with the blue-chip index up 0.15% and the Shanghai Composite up 0.2%. Hong Kong's Hang Seng rose 0.6%. 

 

The official Chinese manufacturing and services purchasing managers' indices both slipped in July, but remained above the 50-point mark that separates growth from contraction on a monthly basis.

 

9:35 AM

Oil & gas stocks were trading in green after oil prices rose for their sixth straight session on bigger-than-expected inventory drawdowns and signs that Saudi Arabia will reduce output further in August. ONGC, GAIL, IOC, RIL and OIL gained between 0.5%-1.5% in early morning deals.

9:30 AM

Analyst view

 

Geojit Financial Services says: Futures are now back to contango, suggesting that the persistent push higher that was evident, while below 10,000 may go missing now. Volatility has also risen, as VIX has started looking higher from record lows. These indications, however do not foretell a vertical drop, but more choppiness needs to be factored in.

9:26 AM

Dena Bank fell 3.39 % after the lender reported losses in the first quarter of this fiscal year on the back of huge loans. Dena Bank reported Rs 133 crore loss against Rs Rs 279 crore in comparable period last year. 

9:25 AM

Larsen & Toubro (L&T) gained 3.4%, making it the top gainer on BSE Sensex after the company reported a 46% YoY rise in consolidated profit at Rs 893 crore for the June quarter. The engineering and construction major reported Rs 610 crore profit in the same quarter last year. 

9:21 AM

Top gainers and losers on BSE Sensex

Source: BSE

9:19 AM

Broader markets were in line with the benchmark indices with BSE Midcap and BSE Smallcap gaining 0.2% each

9:18 AM

Benchmark indices opened flat on Monday following weakness in the global markets amid geopolitical tensions in the Korean peninsula and rising oil prices.

At 9:18 am, the S&P BSE Sensex was trading at 32,364, up 54 points while the broader Nifty50 index was ruling at 10,025 up 11 points.

9:15 AM

NOMURA ON MARUTI SUZUKI

 

The stock currently trades at ~23x FY19F consolidated EPS. We value the company at 25x average FY19-20F consolidated EPS of Rs 359.7. We expect MSIL’s FCF generation to continue to rise sharply as Suzuki would be making incremental investments for capacity expansion. This should help sustain MSIL’s premium multiples, in our view. MSIL remains our top pick in our coverage universe.