Key equity benchmarks ended higher on Tuesday, supported by gains in Reliance Industries and Larsen and Toubro (L&T). Weakness in TCS and HDFC Bank capped gains. The Sensex closed above 39,000 level while the Nifty ended above 11,600 mark. Investors shrugged off trade data released on Monday that showed weakening consumption, with June imports slipping to their lowest level in four months.
The Sensex rose 234.33 points or 0.60% to settle at 39,131.04. The index rose 277.18 points, or 0.71% at the day's high of 39,173.89. The index fell 51.44 points, or 0.13% at the day's low of 38,845.27.
The Nifty 50 index rose 72.70 points or 0.63% to settle at 11,661.05. The index rose 81.70 points, or 0.71% at the day's high of 11,670.05. The index fell 14.40 points, or 0.12% at the day's low of 11,573.95.
In the broader market, the S&P BSE Mid-Cap index rose 0.69%. The S&P BSE Small-Cap index rose 0.27%.
The market breadth was negative On the BSE, 1162 shares rose and 1300 shares fell. A total of 169 shares were unchanged.
Among the sectoral indices on the BSE, the S&P BSE Realty index (up 1.98%), the S&P BSE Oil & Gas index (up 1.66%) and the S&P BSE Consumer Durables index (up 1.62%) outperformed the S&P BSE Sensex. Meanwhile, the S&P BSE IT index (down 0.38%), the S&P BSE Teck index (down 0.31%) and the S&P BSE Telecom index (up 0.19%) underperformed the S&P BSE Sensex.
Reliance Industries rose 1.35% to Rs 1293.10. L&T gained 1.48% to Rs 1461.50.
IT major TCS fell 1.86% to Rs 2105.30.
HDFC Bank fell 0.16% to Rs 2392.15. The bank said that its board is scheduled to meet on Saturday, 20 July 2019, to consider declaration of a special interim dividend, for the financial year 2019-2020, to commemorate 25 years of operations. The announcement was made after market hours yesterday, 15 July 2019.
Yes Bank jumped 11.48% to Rs 103.90, ahead of the bank's Q1 results tomorrow, 17 July 2019. With reference to media report titled, 4 PE players set to infuse capital in YES Bank, the bank clarified after market hours yesterday, 15 July 2019, that in ordinary course of business, it continues to explore various means of raising capital/ funds through issuance of securities to diverse set of investors, in order to meet its business/ regulatory requirements subject to compliance with prescribed procedures and receipt of statutory/regulatory approvals. It added that it is unaware of the source and as a matter of policy, the bank would not like to comment on such speculation.
HDFC rose 0.46%. HDFC has filed term sheet for issuing secured redeemable non-convertible debentures worth Rs 5000 crore on private placement basis. HDFC said that the coupon rate on debentures is 7.87% per annum. The tenor of the debentures is three years, with redemption date being 18 July 2022. The issue opens and closes on the same day on 17 July 2019. The announcement was made after market hours yesterday, 15 July 2019.
HDFC Asset Management Company (HDFC AMC) jumped 3.08% to Rs 1994.30 after net profit rose 42.16% to Rs 291.79 crore on 10.29% increase in total income to Rs 552.75 crore in Q1 June 2019 over Q1 June 2018. The result was announced during trading hours today, 16 July 2019.
HDFC AMC's operating profit from core asset management business for the quarter ended 30 June 2019 jumped 44% to Rs 381.50 crore compared with Rs 264.70 crore in the quarter ended 30 June 2018.
Federal Bank rose 0.70%. The bank's net profit rose 46.25% to Rs 384.21 crore on 23.23% increase in total income to Rs 3,620.82 crore in Q1 June 2019 over Q1 June 2018. The result was announced during trading hours today, 16 June 2019.
The bank's gross non-performing assets (NPAs) stood at Rs 3394.69 crore as on 30 June 2019 as against Rs 3260.68 crore as on 31 March 2019 and Rs 2868.82 crore as on 30 June 2018. The ratio of gross NPAs to gross advances stood at 2.99% as on 30 June 2019 as against 2.92% as on 31 March 2019 and 3% as on 30 June 2018. The ratio of net NPAs to net advances stood at 1.49% as on 30 June 2019 as against 1.48% as on 31 March 2019 and 1.72% as on 30 June 2018. The bank's provisions and contingencies fell 3.57% to Rs 192.04 crore in Q1 June 2019 over Q1 June 2018.
State Bank of India (SBI) rose 1.19%. SBI said that an aggregate penalty of Rs 7 crore was imposed on bank for non-compliance with the directions issued by RBl. The statutory inspection of the bank with reference to its financial position as on 31 March 2017 revealed violation of directions issued by RBI on Income Recognition and Asset Classification (IRAC) norms etc. The announcement was made after market hours yesterday, 15 July 2019.
Union Bank of India gained 3.96%. The Reserve Bank of India has, on July 09, 2019, imposed a monetary penalty of Rs 10 lakh on Union Bank of India for non-compliance with the directions on cyber security framework in banks issued by RBI.
Realty shares advanced. Phoenix Mills (up 3.1%), DLF (up 3.04%), Prestige Estates (up 2.88%), Godrej Properties (up 2.85%), Sunteck Realty (up 1.58%), Indiabulls Real Estate (up 0.92%), Omaxe (up 0.65%) and Sobha (up 0.45%), edged higher.
Most auto shares advanced. Escorts (up 2.80%), Maruti Suzuki India (up 1.31%), Eicher Motors (up 1.27%) and Bajaj Auto (up 0.62%), edged higher. Hero MotoCorp (down 0.12%) and TVS Motor Company (down 1.55%), edged lower.
Tata Motors jumped 5.53%. According to media reports, Jaguar Land Rover Automotive Plc won a 500 million-pound ($626 million) loan guarantee from the U.K. government. The guarantee to JLR by the U.K. Export Finance agency was granted to support the design, manufacture and export of electric cars. JLR, a unit of Tata Motors, will invest hundreds of millions of pounds transforming its Castle Bromwich site near Birmingham after previously committing to electrified options of all new models from 2020. The first electric vehicle off the production line will be the ninth generation of Jaguar's flagship XJ saloon.
Mahindra & Mahindra fell 1.35% to Rs 623.10 after a global brokerage reportedly downgraded its rating on the stock to 'sell' from 'underperform', citing weak earnings growth. The firm has slashed its target price to Rs 590 from Rs 690 per share.
Ashok Leyland rose 1.05%. The company's plant situated at Pantnagar will remain closed from 16 July 2019 to 24 July 2019 (both days inclusive), owning to weak demand and outlook for the industry. The announcement was made after market hours yesterday, 15 July 2019.
The Federation of Automobile Dealers Associations (FADA) today, 16 June 2019, released the monthly vehicle registration data for June 2019. Total vehicle registrations declined 5.4% to 16.46 lakh units in June 2019 over June 2018. Commercial vehicles (CV) registrations tumbled 19.3% to 48,752 units in June 2019 over June 2018. Two-wheelers registrations fell 5% to 13.24 lakh units, while passenger vehicles registrations declined 4.6% to 2.24 lakh units during the period under review.
Total vehicle registrations declined 6% to 51.16 lakh units in Q1 June 2019 over Q1 June 2018. Commercial vehicles (CV) registrations tumbled 14% to 1.75 lakh units in Q1 June 2019 over Q1 June 2018. Two-wheelers registrations fell 6.4% to 40.64 lakh units, while passenger vehicles registrations declined 1% to 7.28 lakh units during Q1 June 2019 over Q1 June 2018.
FADA president, Ashish Harsharaj Kale said that despite starting the month with a positive outlook, the monthly sales ended in a de-growth due to continued liquidity tightness and a much-delayed monsoon. Despite inquiry levels being reasonably strong, retail sales got affected as consumer sentiment continued to be weak and purchase postponement was seen across all segments.
Liquidity still continues to be a worry, both at the retail front as well as the for dealer working capital. With NBFC's and banks still in a cautious mode, the normalcy in lending, which is required to get the sector back to growth, still cannot be seen, Kale commented.
Cipla rose 0.52%. The drug maker announced yesterday that Cipla EU, U.K., a wholly owned subsidiary of Cipla, has entered into a joint venture agreement with Jiangsu Acebright Pharmaceutical, China on 15 July 2019 for incorporation of a joint venture company in China. The joint venture company will be in the business of manufacturing, selling and distribution of pharmaceutical products, research and development services, analytical development services with the purpose of providing high quality and affordable drugs.
Cipla will consider Q1 June 2019 results on Wednesday, 7 August, 2019.
Jubilant Life Sciences rose 0.70%. The company announced after market hours yesterday, 15 July 2019, a price increase of 10% for its Vitamin B3 (Niacin & Niacinamide) with immediate effect, for non-contract customers and wherever existing contracts permit.
Dewan Housing Finance Corporation (DHFL) rose 4.33% to Rs 50.60 on bargain hunting after a recent slump. Shares of DHFL crashed by 31.92% in the past two trading sessions to settle at Rs 48.50 yesterday, 15 July 2019, from its close of Rs 71.25 on 11 July 2019.
DHFL slumped 29.15% to end at Rs 48.50 yesterday, 15 July 2019, due to dismal Q4 results. DHFL reported a net loss of Rs 2,223.41 crore in Q4 March 2019 as compared to a net profit of Rs 134.35 crore in Q4 March 2018. Total income rose 7.4% to Rs 3,056.61 crore in Q4 March 2019 over Q4 March 2018. The result was announced on Saturday, 13 July 2019.
The NSE said that no futures and options contracts will be available for trading in the equity segment for DHFL from 27 September 2019. All existing F&O contracts will expire on 26 September 2019. The announcement was made after market hours yesterday, 15 July 2019.
Tata Metaliks lost 3.95% after net profit dropped 35.44% to Rs 19.62 crore on 7.34% rise in total income to Rs 503.43 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 15 July 2019.
Jet Airways (India) fell 0.86%. The company announced after market hours yesterday, 15 July 2019, that the first meeting of committee of creditors of the firm is scheduled on 16 July 2019.
Cummins India fell 1.04%. The company announced during market hours today, 16 July 2019, that Sandeep Sinha, managing director of Cummins India and vice president of Cummins India ABO, has resigned to pursue business interests outside of Cummins. The Cummins India board of directors is committed to confirming Sinha's successor and will run an efficient and expendient process.
Aditya Birla Fashion and Retail fell 1.94%. The company, after market hours yesterday, 15 July 2019, announced a partnership with India's leading designers Shantanu & Nikhil with the acquisition of 51% stake in Finesse International Design, a company primarily engaged in the business of bespoke occasion and ceremonial contemporary apparel for men and women under the brand name 'Shantanu & Nikhil'.
Brigade Enterprises gained 2.79%. The company, after market hours yesterday, 15 July 2019, proposed issue of bonus equity shares in the ratio of 1:2 and the issue 42.75 lakh warrants convertible to equity shares at Rs 269 per shares. The entire process of bonus issue will be completed within two months from today i.e. on or before 14th September, 2019.
Automotive Stampings & Assemblies slumped 11.90% after it announced Q1 June 2019 result after market hours yesterday, 15 July 2019. The company reported net loss of Rs 9.55 crore in Q1 June 2019 compared with net loss of Rs 5.93 crore in Q1 June 2018. Net sales rose 7.9% to Rs 120.34 crore in Q1 June 2019 over Q1 June 2018.In a separate announcement yesterday, Automotive Stampings & Assemblies announced the appointment of Ms. Bhavna Bindra as an additional director designated as non-executive independent director wef July 15, 2019 for a period of five years starting from July 15, 2019 till July 14, 2024, subject to approval of Shareholders of the company.
Vakrangee fell 2.91%. The company announced during market hours today, 16 July 2019 that it has decided to set-up the electric vehicle (EV) charging infrastructure facility through Nextgen Vakrangee Kendra Outlets. Vakrangee has 3,504 Nextgen Vakrangee Kendra's spread across 19 states, 366 districts and 2,186 postal codes. It has a planned target to reach at least 75,000 by FY2021-22 and 3,00,000 outlets by FY2024-25.
On the macro front, India's merchandise exports fell 9.71% to $25.01 billion while imports fell 9.06% to $40.29 billion in June compared with a year earlier, data released by government after market hours yesterday, 15 July 2019 showed. Trade deficit narrowed to $15.28 billion in June from $16.6 billion in June 2018.
Meanwhile, IHS Markit India Business Outlook survey released yesterday, 15 July 2019, stated that business sentiment in India fell in June, dampened by worries about the sustainability of the economic upturn, water shortages, public policies and regulation. However, hopes of pro-business government policies and a better financial flow continue to underpin optimism towards output and profitability growth in the year ahead.
Meanwhile, GST collection of states and union territories (UTs) increased to Rs 5.18 trillion in the full financial year 2018-19, up from Rs 2.91 trillion collected in nine months of 2017-18, Finance Minister Nirmala Sitharaman said Monday. In a written reply to a question in the Lok Sabha, Sitharaman said concerted efforts have been made to improve tax compliance. The total GST collection of the states/UTs for 2018-19 stood at Rs 5,18,447 crore against GST collection of Rs 2,91,100 crore in 2017-18, she added.
The yield on India's 10-year benchmark sovereign bond fell to 6.333% at 16:28 IST compared with 6.433% at close in the previous trading session. India's sovereign bonds have rallied recently after the government trimmed the budget deficit target for this fiscal year from its estimate in February, and proposed to shift a part of its market borrowing overseas. The RBI has cut rates three times this year amid a subdued inflation outlook and sluggish growth.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 68.65, compared with its close of 68.5475 during the previous trading session.
In the commodities market, Brent crude for September 2019 settlement rose 20 cents at $66.68 a barrel. The contract fell 24 cents or, 0.36% to settle at $66.48 a barrel in the previous trading session.
Overseas, most European stocks traded higher while most Asian stocks ended higher as investors looked to earnings and clues from policy makers for the next catalyst.
Meanwhile, trade continues to be an area of focus for the market. President Donald Trump said Monday that US tariffs were having a 'major effect' on China, following the release of data that showed China's economy growing at its slowest pace in 27 years.
Elsewhere, in terms of data, the euro zone's balance of trade for May and July's economic sentiment figures for Germany and the euro zone are due Tuesday.
US stocks settled at record high Monday as investors digested second-quarter results from Citigroup and awaited a wave of second-quarter earnings. On the economic data front, the New York Fed's Empire State manufacturing survey rebounded to 4.3 in July, from minus 8.6 in June.
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