Key equity benchmarks snapped two-day losing streak and ended with strong gains on Monday, mirroring positive global stocks. The Nifty ended above 11,850-mark. Global shares rallied after US President Donald Trump and Chinese President Xi Jinping agreed to hold off on additional tariffs in a bid to reignite trade talks. Easing concerns over bilateral trade between India and the US also supported domestic stocks.
Investors took fresh position on hopes that the government could announce steps to bolster economic growth in its full-blown union budget, which will be presented by Finance Minister Nirmala Sitharaman on Friday, 5 July.
The barometer index, the S&P BSE Sensex, rose 291.86 points or 0.74% to 39,686.50. The index hit a high of 39,764.82 and a low of 39,541.09 in intraday.
The Nifty 50 index rose 76.75 points or 0.65% to 11,865.60. The index hit a high of 11,884.65 and a low of 11,830.80 in intraday.
The broader market underperformed the benchmark index. The S&P BSE Mid-Cap index was up 0.54%. The S&P BSE Small-Cap index was up 0.30%.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1268 shares rose and 1307 shares fell. A total of 169 shares were unchanged.
Zee Entertainment Enterprises (up 8.73%), Dr. Reddy's Laboratories (up 4.06%), Tata Motors (up 3.11%), Housing Development Finance Corporation (up 2.65%) and Indiabulls Housing Finance (up 2.42%) advanced.
Coal India (down 1.79%), HCL Technologies (down 1.46%), UltraTech Cement (down 0.78%), Titan Company (down 0.74%) and JSW Steel (down 0.65%) declined.
State Bank of India rose 0.17%. The central board of the bank approved raising AT 1 capital upto Rs 7,000 crore by way of issuance of Basel-III compliant debt instrument in rupee and/or any other convertible currency through a public offer or private placement to overseas and/or Indian investors (Dollar AT 1/Masala AT 1) in such number of tranche(s), at such time as may be considered appropriate and on such coupons, as may be decided at the time of actual issuance during FY20. The bank shall obtain Gol concurrence in this regard.
Adani Power (APL) jumped 17.45%. The company's board approved the proposal for acquisition of entire stake of Korba West Power Company (KWPCL), a company undergoing the corporate insolvency resolution process. The board also approved acquisition of GMR Chhattisgarh Energy (GCEL), in respect of which consortium of lenders of GCEL have approved the resolution plan submitted by APL for GCEL and issued an LOI for the same to APL.
Anant Raj gained 7.38% .The company announced a joint venture with Birla Estates. The JV agreement will cover development of two residential projects at Gurugram, Haryana. The announcement was made on Saturday, 29 June 2019.
Deepak Nitrite rose 3.70%. The company, through its wholly-owned subsidiary, Deepak Phenolics (DPL) achieved major milestone towards manufacture of Phenol and Acetone with average capacity utilisation of around 80% and having achieved peak capacity utilization of 100% during the last quarter of FY 2019 contributes Rs 927 crore to consolidated turnover of Rs 2,715 crore. This plant has capacity to manufacture 200,000 MTPA of Phenol and 120,000 MTPA of its co-product Acetone and supported by capacity to manufacture 260,000 MT of Cumene as captive consumption. The project with capital investment of Rs 1400 crore has been successfully commissioned and operating since last quarter. This business alone brought in turnover of Rs 1000 crore and most importantly, annual import substitution of phenol will now bring foreign exchange savings of $400 million to the nation.
Bajaj Auto rose 3.14%. The company's total vehicles sales remained almost unchanged in June 2019 over June 2018. Total vehicles sales were at 4.04 lakh units in June 2019. Total domestic sales fell 2% to 2.29 lakh units, while total exports rose 3% 1.75 lakh units. The announcement was made during market hours today, 1 July 2019.
Maruti Suzuki India fell 0.46%. The company's total vehicles sales fell 14% to 1.24 lakh units in June 2019 over June 2018. Total domestic sales fell 15.3% to 1.14 lakh units, while total exports rose 5.7% to 9847 lakh units. The announcement was made during market hours today, 1 July 2019.
Eicher Motors rose 2.40%. Total sales of Eicher trucks & buses fell 28.7% to 4502 units in June 2019 over June 2018. Total domestic sales fell 24.7% to 4136 units while total exports fell 55.3% to 366 units during the period under review. The announcement was made during market hours today, 1 July 2019.
Commercial vehicles maker Ashok Leyland fell 0.17%. The company's total vehicles sales fell 19% to 12810 units in June 2019 over June 2018. The announcement was made during market hours today, 1 July 2019.
Mahindra & Mahindra (M&M) gained 0.59%. M&M reported 6% decline in total sales to 42547 units in June 2019 over June 2018. The total domestic sales fell by 5% to 39471 units while the total exports decreased by 11% to 3076 units during the state period.
M&M's total tractor sales (domestic + exports) during June 2019 were at 33,094 units, down 18% against 40,529 units for the same period last year. The announcement was made during market hours today, 1 July 2019.
ONGC shed 3.99%. ONGC on 28 June 2019, announced notice inviting offer (NIO) seeking partners for enhancement of oil and gas production from its 64 marginal nomination fields with the intention to maximize recovery from these fields by infusion of new technology. The offer shall allow interested companies to participate in the international competitive bidding process announced for 17 onshore contract areas comprising of 64 oil and gas producing fields with total in-place O+OEG volume of about 300 MMTOE. Companies, either alone or in consortium or joint ventures, may bid for one or more contract areas. The bidders are required to fulfil the requisite technical and financial criteria and the bids would be evaluated on the basis of revenue sharing from the incremental oil and gas production.
ONGC is inviting the bids through its e-procurement portal. A pre-bid conference will be held at ONGC Corporate Office, New Delhi. Bidders interested in studying the data can purchase field information dockets and data packages. Interested companies can access the data viewing facility at Institute of Reservoir Studies (IRS), ONGC, Ahmedabad.
Eveready Industries India hit a lower circuit of 5% at Rs 76. The company announced that Price Waterhouse has resigned as statutory auditor citing its inability to analyse the impact of financial support extended by the battery maker. The announcement was made on Friday, 28 June 2019. In a separate announcement, the company has also entered into a contract with Madhu Jayanti International to sell assets, valued at Rs 6 crore, related to tea packaging product. The announcement was made on Saturday, 29 June 2019.
Shares of most public sector oil marketing companies (PSU OMCs) declined as Brent crude oil price increased. Bharat Petroleum Corporation (down 4.16%) Hindustan Petroleum Corporation (down 2.47%) and Indian Oil Corporation (down 2.69%) declined.
In the commodities market, Brent crude for August 2019 settlement was up $1.76 at $66.50 a barrel. The contract ended flat at $66.5 a barrel in the previous trading session.
OPEC members are set to meet on July 1 in Vienna, followed by a meeting with non-OPEC states on July 2. Oil producers may reportedly extend a deal to curb oil production.
On the economic front, the Indian manufacturing sector lost growth momentum in June, following an acceleration in May. The IHS Markit India Manufacturing Purchasing Managers' Index (PMI) was at 52.10 in June, down from May's three-month high of 52.70 but still signalling an improvement in operating conditions across the sector. A reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease. In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 69.0625, compared with its close of 69.03 during the previous trading session.
Overseas, European markets edged higher on Monday. Most Asian markets settled with gains. Investors globally were rejoiced after US President Donald Trump and Chinese President Xi Jinping agreed to hold off on slapping additional tariffs in an effort to resume trade talks.
The moves came after Trump and Xi emerged from a meeting on the sidelines of the Group of 20 summit in Osaka, Japan. Both sides confirmed in separate comments that they did not plan to levy any new tariffs against each other's products at the present time.
Data released Monday from a private survey showed that Chinese factory activity in June was at its lowest since January. The Caixin/Markit factory Purchasing Managers' Index (PMI) for June was 49.4. The PMI reading for May was 50.2. Separately, the Purchasing Managers' Index (PMI) stood at 49.4 in June, China's National Bureau of Statistics said on Sunday, unchanged from the previous month.
US stocks closed higher on Friday, 28 June 2019 led by banks after the Federal Reserve's second round of stress test results. In US economic data, the Commerce Department reported US consumer spending rose 0.4% in May, while personal incomes rose 0.5% during the same period.
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