The market edged higher on Tuesday, as investors awaited the central bank's monetary policy decision scheduled on Wednesday. The Nifty trimmed gains after briefly crossing 11,000 mark as profit booking emerged at higher levels.
The Reserve Bank of India (RBI)'s third bi-monthly monetary policy committee (MPC) meeting started on 5th August. The resolution of the MPC will be placed on the RBI website at 11:45 IST on 7 August.
The barometer index, the S&P BSE Sensex, rose 277.01 points or 0.75% to 36,976.85. The Nifty 50 index rose 85.65 points or 0.79% to 10,948.25.
Domestic shares bounced back from a steep selloff in the previous trading session, which was triggered by the government's move to scrap special status of the disputed Kashmir region.
In the broader market, the S&P BSE Mid-Cap index rose 1.44%. The S&P BSE Small-Cap index rose 1.72%.
The market breadth was strong. On the BSE, 1637 shares rose and 809 shares fell. A total of 120 shares were unchanged.
Among the sectoral indices on the BSE, the S&P BSE Capital Goods index (up 2.12%), the S&P BSE Telecom index (up 1.94%) and the S&P BSE Realty index (up 1.78%) outperformed the S&P BSE Sensex. Meanwhile, the S&P BSE Energy index (down 0.68%), the S&P BSE IT index (down 0.20%) and the S&P BSE Teck index (down 0.15%) underperformed the S&P BSE Sensex.
Tech Mahindra (up 3.97%), Bajaj Finance (up 3.41%), Bharti Airtel (up 3.18%), Maruti Suzuki India (up 2.88%) and Asian Paints (up 2.74%) advanced.
Power Grid Corporation of India (down 1.52%), TCS (down 1.47%), Reliance Industries (down 1.31%), Tata Motors (down 0.97%) and Bajaj Auto (down 0.77%) declined.
Yes Bank gained 5.30%. The bank announced after market hours yesterday, 5 August 2019, ratings update by Moody's and Brickwork.
Moody's Investor Service has extended its review for downgrade of the bank's Ba1 long‐term foreign‐currency issuer rating. The review for downgrade was initiated on 11 June 2019, reflecting Moody's expectation that the ongoing liquidity pressures on Indian finance companies will negatively impact Yes Bank's credit profile, given the bank's sizeable exposure to weaker companies in the sector.
Brickwork Ratings has downgraded the rating of the bank's Lower Tier II Bonds from 'BWR AA' to 'BWR AA-', Upper Tier II Bonds, Hybrid Tier I Bonds, Innovative Perpetual Debt Instruments from 'BWR AA-' to 'BWR A+'. The outlook continues to remain Negative.
The rating revision factors, higher than expected deterioration in asset quality with gross NPAs increased to 5.01% in Q1 FY20 as compared to 3.22% at the end of FY19 and the stressed assets in the portfolio remaining at elevated levels that could continue to put pressure on the asset quality. The rating is also constrained by the delay in raising capital resulting in the restricted growth in the lending portfolio.
Jammu & Kashmir Bank hit 10% upper circuit at 37.50. India Ratings and Research has downgraded Jammu & Kashmir Bank's (JK Bank) Long-Term Issuer Rating to 'IND AA-' from 'IND AA' while placing it on Rating Watch Negative (RWN). The Outlook on the earlier rating was Negative.
J&K Bank was majority owned by the state government of J&K (59.2%) and plays a significant role in the economy of J&K state. Ind-Ra will resolve the RWN once it attains further clarity on the impact of the said announcement on the profile of JK Bank.
Dewan Housing Finance Corporation (DHFL) soared 32.06% to Rs 55.40. The company said that the special committee for resolution plan at its meeting held on Tuesday, 6 August, 2019, took on record the draft 'Resolution Plan' formulated by the company in consultation with the committee and its financial advisors and also approved the submission of the said resolution plan to the lenders of the company.
Some of the features of the draft 'resolution plan' are no principal haircuts to any creditors, measures towards addressing aligning asset-liability mismatch, moratorium on repayments and funding plans for starting the retail funding activity. The announcement was made during market hours today, 6 August 2019.
Titan Company gained 0.12% to Rs 1038.05. The company's consolidated net profit rose 10.84% to Rs 3637.4 crore on 15.62% rise in net sales to Rs 50951 crore in Q1 June 2019 over Q1 June 2018. The result was announced during market hours today, 6 August 2019.
The jewellery division recorded an income growth of 13.3% in the first quarter. The income from this division in Q1 was Rs 4047 crore as against Rs 3572 crore last year. Growth in the jewellery segment was adversely impacted by high gold prices, especially during the month of June 2019.
Pidilite Industries rose 2.78%. The company's consolidated net profit rose 21.17% to Rs 294.27 crore on 9.96% rise in net sales to Rs 2016.81 crore in Q1 June 2019 over Q1 June 2018. The result was announced during market hours today, 6 August 2019.
Berger Paints India rose 3.94%. The company's consolidated net profit rose 31.8% to Rs 176.41 crore on 15.7% rise in net sales to Rs 1716.53 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 5 August 2019.
SRF surged 15.89% to Rs 2988.05. The company's consolidated profit after tax (PAT) rose 41% to Rs 189 crore on 9% rise in revenue to Rs 1828 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market yesterday, 5 August 2019.
Kolte-Patil Developers jumped 12.59% after the company announced its Q1 June 2019 result during market hours today, 6 August 2019. On a consolidated basis, Kolte-Patil Developers's net profit rose 205.51% to Rs 115.88 crore on a 49.96% rise in the revenue from operations to Rs 585.68 crore in Q1 June 2019 over Q1 June 2018.
Dilip Buildcon fell 1.31%. On a consolidated basis, the construction company's net profit fell 54.9% to Rs 100.42 crore on a 3.4% fall in the net sales to Rs 2436.44 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 5 August 2019.
Indian Hotels Co. rose 4.52%. On a consolidated basis, the hospitality company's net profit fell 24.3% to Rs 4.90 crore on a 4.1% rise in the net sales to Rs 1020 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 5 August 2019.
KEI Industries rose 8.16%. On a consolidated basis, the electrical cable and wire manufacturer's net profit rose 41.9% to Rs 45.72 crore on a 22% rise in the net sales to Rs 1081.36 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 5 August 2019.
Torrent Power rose 4.03%. On a consolidated basis, the company's net profit rose 21.9% to Rs 275.27 crore on a 5.9% rise in the net sales to Rs 3736.13 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 5 August 2019.
Mangalam Cement surged 19.87% to Rs 263. The cement maker reported net profit of Rs 33.22 crore in Q1 June 2019 over a net loss of Rs 15.32 crore in Q1 June 2018. The net sales rose 30.8% to Rs 333.16 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 5 August 2019.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 70.8425, compared with its close of 70.73 during the previous trading session.
In the commodities market, Brent crude for October 2019 settlement was rose 13 cents at $59.94 a barrel. The contract fell $2.08 or 3.36% to settle at $59.81 a barrel in the previous trading session.
Overseas, most European stocks were trading higher. Asian stocks fell across the board Tuesday as the US-China trade war intensified, after Beijing confirmed it is suspending agricultural product purchases in response to new American tariffs. The Chinese Ministry of Commerce said Chinese companies have stopped purchasing American agricultural products in response to Trump's latest salvo and added it would not rule out tariffs on newly purchased agricultural goods after August 3. For its part, China is one of the largest buyers of U.S. agriculture.
China's yuan fell to a record low to the dollar on Monday. China's central bank said that the depreciation was due to the effects of unilateralist and trade-protectionist measures and the expectations for tariffs against China. People's Bank of China Governor Yi Gang said that China won't engage in competitive devaluation and that the decline was due to market forces.
US stocks suffered their biggest one-day decline of 2019 on Monday as China allowed its currency to fall to a more-than-10-year low versus the dollar after President Donald Trump rattled markets by announcing additional tariffs on Chinese goods late last week. President Donald Trump said last week the US is putting 10% tariffs on another $300 billion worth of Chinese goods starting September 1.
US Treasury Secretary Steven Mnuchin said on Monday the government had determined that China is manipulating its currency, and that Washington would engage with the International Monetary Fund to eliminate unfair competition from Beijing.
The People's Bank of China (PBOC) denied Washington's allegations of currency manipulation, and set its yuan fixing at 6.9683 per dollar, below the important line of 7 per dollar that it had breached on Monday.
The PBOC said in a statement on Tuesday that the label seriously undermines international rules and will have a major impact on global finance and economy.
In US, the Institute for Supply Management said its nonmanufacturing, or services, index fell to 53.7% in July from 55.1% in June. The reading was the lowest since August 2016. A reading of more than 50 indicates expansion in activity.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
