The Nifty snapped four-day losing trend on Thursday, amid broad based buying support, backed by positive global cues. Shares in global stock markets advanced after Federal Reserve Chairman Jerome Powell hinted at a possible rate cut later this month.
Powell said the US economy was still under threat of a slowdown in his testimony on Wednesday and said the Fed was ready to "act as appropriate".
The Sensex rose 266.07 points or 0.69% to settle at 38,823.11. The index rose 335.46 points, or 0.87% at the day's high of 38,892.50. The index rose 74.27 points, or 0.19% at the day's low of 38,631.31.
The Nifty 50 index rose 84 points or 0.73% to settle at 11,582.90. The index rose 100.10 points, or 0.87% at the day's high of 11,599. The index fell 20.60 points, or 0.18% at the day's low of 11,519.50.
The S&P BSE Mid-Cap index rose 0.56%. The S&P BSE Small-Cap index rose 0.41%. Both these indices underperformed the Sensex.
The market breadth was positive. On the BSE, 1243 shares rose and 1195 shares fell. A total of 158 shares were unchanged.
However, rising crude oil prices capped the gains in domestic shares. In the commodities market, Brent crude for September 2019 settlement rose 45 cents at $67.46 a barrel. The contract rose $2.85 a barrel, or 4.44% to settle at $67.01 a barrel in the previous trading session.
Crude oil futures extended gains today, 11 July 2019, as geopolitical tensions resurfaced. Strong upmove in global equities also fueled rally in commodities. Media reports stated that three Iranian boats attempted to impede a British oil tanker in the Strait of Hormuz, a potentially critical waterway for global oil supplies. The WTI Crude futures extended their break above $60 per barrel. The counter hit a six week high near $61 per barrel and currently trades at $60.78 per barrel, up 0.61% on the day.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 68.445, compared with its close of 68.58 during the previous trading session.
Among the sectoral indices on the BSE, the S&P BSE Auto index (up 1.84%), the S&P BSE Metal index (up 1.81%) and the S&P BSE Telecom index (up 1.46%) outperformed the S&P BSE Sensex. Meanwhile, the S&P BSE Capital Goods index (down 0.23%), the S&P BSE Consumer Durables index (down 0.05%) and the S&P BSE IT index (up 0.11%) underperformed the S&P BSE Sensex.
Among index pivotals, HDFC (up 1.43%), HDFC Bank (up 0.90%) and Reliance Industries (up 0.23%) gained.
Metal shares jumped. JSW Steel (up 4.88%), Hindustan Zinc (up 2.44%), Hindalco Industries (up 2.16%), Steel Authority of India (up 1.96%), Jindal Steel & Power (up 1.63%), Tata Steel (up 1.58%), Hindustan Copper (up 1.06%) and National Aluminium Company (up 0.11%), edged higher. NMDC fell 3.12%.
Vedanta rose 2.31% to Rs 163.70 on bargain hunting after a recent slide. Shares of Vedanta fell 8.44% in the past six trading sessions to settle at Rs 160 yesterday, 10 July 2019, from its close of Rs 174.75 on 2 July 2019.
Vedanta's chairman Navin Agarwal was quoted at the annual general meeting (AGM) today, 11 July, that the company spent around Rs 10,000 crore in FY2019 on capital expenditure programmes. The company's growth plans will see it becoming the world's largest zinc producer and among the top three silver producers.
As India's largest private sector oil and gas producer, Vedanta aims to double its current contribution of 27% of nation's production. India currently imports around 80% of its oil and gas requirements, amounting to $150 billion, he said.
Looking at the medium term, Agarwal said Vedanta's plans include a total capital investment of Rs 55,000 crore to increase production by about 50% across its businesses which the company expects to fund from internal cash flows.
Auto stocks witnessed buying. Hero MotoCorp (up 4.46%), Mahindra & Mahindra (up 1.99%), Maruti Suzuki India (up 1.63%), Escorts (up 1.44%), Eicher Motors (up 1.07%) and Ashok Leyland (up 0.41%), edged higher. Bajaj Auto fell 1.06%.
Tata Motors rose 3.63%. The company announced during market hours today, 11 July 2019 that global wholesales in June 2019, including Jaguar Land Rover, were at 95,503 units, lower by 5%, as compared to June 2018. The company added that global wholesales of all Tata Motors' commercial vehicles and Tata Daewoo range in June 2019 were at 38,846 units, lower by 12%, over June 2018. It said that global wholesales of all passenger vehicles in June 2019 were at 56,657 units, grew by 1%, compared to June 2018.
TVS Motor Company rose 2.68% after the company said it launched 100cc economy motorcycle, TVS Sport, in Sri Lanka. TVS Motor Company said that the mileage-efficient motorcycle boasts of new generation graphics and style. "In Sri Lanka, where two-wheeler mobility is on a rise, TVS Sport is the ideal motorcycle to traverse long distance with excellent fuel efficiency," R. Dilip, senior vice president, international business, TVS Motor Company, said.
InterGlobe Aviation fell 3.07%, extending yesterday's 10.73% slump triggered by the company's co-founder, Rakesh Gangwal, raising corporate governance issue with market regulator Securities and Exchange Board of India (Sebi).
Reliance Power rose 5.51% after the company reported that company's Samalkot project has successfully recasted Rs 2430 crore loan from US-EXIM. The company further added that it is in advanced stages of development of Bangladesh project and relocating Samalkot modules to Bangladesh.
Reliance Infrastructure rose 10.98% after the company announced that an inter-creditor agreement has been signed among the company's 16 lenders. The agreement achieves standstill for 180 days and the company plans to implement resolution plan well before 180 days by monetising its assets.
Bharat Forge rose 4.47% after the company said that its subsidiary has received a $100 million contract from RAFAEL Advanced Defense Systems. The company announced that Kalyani Rafael Advanced Systems (KRAS), its step-down subsidiary, has received the contract for manufacturing 1,000 BARAK-8 Medium Range Surface Air Missiles' kits, which in turn would be supplied to Bharat Dynamics (BDL) for further integration. KRAS is a 49:51 ratio joint venture between RAFAEL Advanced Defense Systems and Kalyani Strategic Systems (KSSL), with the Indian partner holding 51%. KSSL is a 51% subsidiary of Bharat Forge.
Cox & Kings hit a lower circuit limit of 5% at Rs 23.20 after the company defaulted on unsecured commercial papers worth Rs 125 crore. The company defaulted on 9 July 2019. Further, the company's issuer rating was revised to 'CARE C' from 'CARE BB', long term facilities were revised to 'CARE C' from 'CARE BB' and non-convertible debenture issue was rated 'CARE D' from 'CARE BB'. Meanwhile, Cox & Kings has maintained a rating of 'CARE D' in commercial paper issue of Rs 375 crore and 'CARE A4' in commercial paper issue worth Rs 1,685 crore.
Premier Explosives rose 4.62% after the company said it won a Rs 14.99 crore order from Bharat Dynamics. The order is for supplying solid propellants for medium range surface to air missile (MRSAM) to be executed within a period of 14 months. This is not a material supply order.
Aurobindo Pharma rose 1.25% after the company said it launched Cinacalcet Hydrochloride tablets in the US market in accordance with the terms of settlement agreement with Amgen Inc. The drug is a generic version of Amgen Inc's Sensipar tablets. Cinacalcet Hydrochloride tablets had an annual sale of approximately $1,449 million for the twelve months ending May 2019 as per IQVIA.
The drug is indicated for the treatment of secondary hyperparathyroidism (HPT) in adult patients with chronic kidney disease (CKO) on dialysis; hypercalcemia in adult patients with parathyroid carcinoma; and severe hypercalcemia in adult patients with primary HPT who are unable to undergo parathyroidectomy.
Piramal Enterprises rose 1.34%. The company announced that a special committee of the board approved issuing 9.5% secured, rated, unlisted, redeemable non-convertible debentures on private placement basis up to Rs 1,500 crore each having a face value of Rs 10 lakh. The tenure of the instrument is six months. The date for redemption is set at 12 January 2020. The instrument received a credit rating of 'A1+' from CRISIL.
Glenmark Pharmaceuticals rose 1.31% and Torrent Pharmaceuticals fell 0.03%. Both the companies signed a licensing agreement for co-marketing of Remogliflozin Etabonate in India. Glenmark Pharmaceuticals and Torrent Pharmaceuticals have entered into a non‐exclusive sub‐licensing agreement to co‐market Sodium Glucose Co‐Transporter‐2 (SGLT2) inhibitor, Remogliflozin Etabonate (Remogliflozin) in India.
Under the terms of the agreement, Glenmark Pharmaceuticals will receive an upfront payment, license fees and royalties for the non‐exclusive sub‐license rights from Torrent Pharmaceuticals. Glenmark Pharmaceuticals will manufacture and supply Remogliflozin while Torrent Pharmaceuticals will market the drug under its own trademark 'Zucator' in India. Remogliflozin is indicated in the treatment of Type 2 Diabetes Mellitus in adults.
Overseas, European markets were trading higher while Asian markets closed on a positive note after Federal Reserve Chair Jerome Powell reinforced prospects of a US interest rate cut later this month.
US stocks rose on Wednesday with the Nasdaq Composite index closing at a record high after Federal Reserve chairman Jerome Powell indicated interest rates cuts may be imminent in the face of some weakening economic data.
In testimony to a congressional committee, Powell noted that while the U.S. jobs market remains robust and consumer spending appears set to rebound, business investment has slowed considerably, along with housing investment and manufacturing output.
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