US stocks rose on Monday, lifted by technology companies, as investors eyed fresh U.S.-China trade developments during a busy week of corporate earnings with results from marquee names including Facebook and Amazon on tap.
Second-quarter earnings started off on a dour note last week as results from major banks raised concerns about profit growth in a low interest rate environment. Tech earnings on the other hand have been robust, with Microsoft Corp and International Business Machines reporting profit beats.
ETMarkets Evening Podcast: Bears again flex muscle; what's next?
Traders are advised not to trade aggressively and should refrain from catching falling knives from high beta universe. However, we still believe that, traders’/ investors’ with a slightly broader perspective, should accumulate quality propositions in staggered manner in this ongoing decline. Few positive take away from today’s session are the strong upsurge in Reliance Industries in last hour and the recovery in the ‘Midcap’ index from its crucial support. These observations certainly bode well and hence, traders should capitalise on extension of these moves
- Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking
The price setup and near-term oscillators continue to be in sell mode and there is still scope for further fall towards 11,130-11,260 in the near term
The 11,300 level coincides with the ‘multi-month’ trend line, drawn by connecting October 2018 and February 2019 lows. Besides it is the 78.6 per cent retracement of the entire rally from 11,108.30 to 12,103.05. Considering this, a possibility of some relief in the next couple of days cannot be ruled out. In this scenario, 11,400-11,450 may be retested. That said, the overall chart structure is distorted and as long as the index is below 11,650-11,700, intermediate rebounds should only be treated as short term relief
Global volatility along with weak results season so far has been weighing down the markets. RBI Governor’s commentary indicating measured pace of rate cuts also adversely impacted both bond and the equity markets. Market internals were also quite intriguing with Yes Bank and metals leading the way while the market favourites like HDFC twins and Bajaj twins were among the top losers among index stocks. We see weakness to continue in the immediate term in absence of any upside triggers
- Gaurav Dua, Senior VP, Head – Capital Market Strategy, Sharekhan
Nifty has been making lower highs and lower lows from the last three sessions and needs to negate the same to get some stability or pause in the selling pressure. Till Nifty remains below the 11,461 level, it could fall towards the next support of 11,250 while immediate hurdles are seen at 11,420 and then 11,461 levels
Nifty has almost met the immediate target of a bearish flag pattern it formed on the daily chart. Going ahead 11,250 is likely to be a key level, which can result in a small reversal
- Gaurav Bissa, AVP Derivatives & Technicals, LKP Securities
Market entered into a bearish phase as investors turned sellers due to concerns over extension of economic slowdown and weak corporate earnings hurting the sentiment. This correction has expanded to large caps which until now were attracting FII inflows, but concerns over tax and muted Q1 results will continue to impact
- Vinod Nair, Head of Research, Geojit Financial Services
Market has been falling since the Budget day as FIIs have started selling after the "super-rich tax" was announced. Market has also started factoring in weak corporate results, slow progress of monsoon, lack of any stimulus package from Govt to spur consumption slowdown & no concrete steps being taken by the Govt to address liquidity crunch. This is besides the possibility of Trade War causing global slowdown and money moving towards precious metals like gold
Kotak Mahindra Bank on Tuesday posted 32.71 per cent year-on-year (YoY) rise in standalone profit at Rs 1,360 crore for the quarter ended June 30. The lender had posted a profit of Rs 1,024.94 crore in the corresponding quarter last year.
Analysts in an ET NOW poll had projected a profit of Rs 1,410 crore.
Provisions and contingencies declined 32.55 per cent YoY to Rs 316.76 crore during the quarter under review. However, the figures jumped 84.96 per cent on a quarterly basis.
A crack in the HDFC twins, Bajaj Finance will seriously impact NAVs of mutual funds which might face a further cascading effect. The vicious circle is deepening and the necessity of liquidity will eventually lead to large liquidations even in frontline stocks. Investors should mentally be ready to see further cuts in their portfolio values until at least till Diwali. They are advised to wait and not do bottom fishing currently. Nifty50 can reach 10,000 levels before Christmas this year. They may raise cash levels in their portfolio by selling some of the front line stocks in the financial space so that later they can reinvest in beaten down stocks
State-owned NTPC will seek shareholders' approval to raise Rs 15,000 crore through issuance of bonds or debentures and to raise borrowing limit to Rs 2 lakh crore, next month. The company will seek shareholders' nod through a special resolution to raise funds up to Rs 15,000 crore through issue of bonds/debentures on private placement basis in domestic market. The funds raised will be used for capex, working capital and general corporate purposes, an NTPC notice for AGM said.
IL&FS Transportation Networks, a group company of the troubled IL&FS group, has defaulted on payments of Rs 26.02 crore due on interest of non-convertible debentures (NCDs) because of insufficient funds.
The interest due and payable on July 21, 2019 was not paid to the debenture holders due to insufficient funds, the company said in a filing to stock exchanges.
Paddy 1121 contract hits lower circuit on ICEX
In early morning trade the Indian Commodity Exchange paddy 1121 contract had hit the lower circuit of the daily price limit filter and was down by over 3 per cent to trade at Rs 3865 per quintal. The paddy 1121 grade contracts were launched on ICEX platform on July 11.
FIIs flee D-Street
Chinese market has seen FPI inflows of US$ 20 billion this month and US$ 83 billion year to date. Indian market ha… https://t.co/aCCtu2pZFo
China stocks close lower as buyers flock to new STAR board
China's major stock indexes closed lower on Monday, as enthusiasm for the country's new Nasdaq-style STAR Market drew investor attention away from the main boards. The blue-chip CSI300 index fell 0.7%, to 3,781.68, while the Shanghai Composite Index closed down 1.3% at 2,886.97.
Investors expecting a shift in market momentum following the second mandate for Modi government in the recent Lok Sabha elections are in for disappointment.
Investor sentiments soured in the first 50 days of Modi 2.0, with stock investors losing nearly Rs 12 lakh crore worth of wealth within a short period.
India set for record edible oil imports as scanty rains trim output
India's edible oil imports are likely to rise 7.3 per cent in 2019/20 to a record high as weak monsoon rains curtail yields of summer-sown oilseeds such as soybeans and groundnut, a senior industry official said.
Higher purchases by the world's biggest edible oil importer could support palm oil prices that are under pressure due to sluggish demand amid an expected rise in production.
"Rainfall was scanty over oilseed-growing areas. It will reduce yields of groundnut, soybeans and cotton," said Govindbhai Patel, managing director of trading firm G.G. Patel & Nikhil Research Company.
SAT allows SEBI two months time to file reply in NSE colocation case
The Securities Appellate Tribunal (SAT) has granted two months time to Securities and Exchange Board of India (Sebi) to reply to a plea filed by the National Stock Exchange (NSE) against the Rs 1,100 crore penalty imposed.
Earlier on May 22, in a partial relief to the exchange, the SAT had directed the exchange to transfer Rs 625 crore to the Sebi in two weeks and has stayed the capital market regulator’s order till further instructions.
NSE has challenged Sebi’s orders in co-location case before SAT with the exchange arguing that Sebi’s order is unsustainable, arbitrary and disproportionate.
Nifty has broken its previous bottom of 11,460 and is expected to remain under selling pressure in the near term. On the downside strong support is seen at 11,000-11,100 levels; the same can be tested unless any meaningful reversal is seen in the broader markets. Midcap indices trade around pre-election levels; high volatility is expected in this space. 11,000 remains an inflection point for the index for the next few months; Make or break of the same is expected to define the further course of the markets.
- Sahaj Agarwal, Head of Derivatives, Kotak Securities
HDFC Bank, India’s most valuable lender and the Street’s gold standard for prudential lending, has highlighted risks of unsecured loans while flagging retail demand fatigue, which is reflected in muted highfrequency data sets such as auto sales, personal credit off-take and rural consumption.
Top 10 NSE gainers at 11.30 am
Price as on 22 Jul, 2019 11:31 AM, Click on company names for their live prices.
Shares of YES Bank advanced over 7 per cent in Monday's session amid reports that DHFL is likely to announce a deal with special situations investor AION Capital for a majority stake in the housing finance company.
The deal would lead to an infusion of $1.5 billion into the debt-ridden firm. With this, DHFL promoters’ family stake is likely to come down to 10 per cent. No big haircut to lenders is likely. SBI, YES Bank, Union Bank and Bank of Maharashtra are among key lenders to the NBFC.
According to the report, YES Bank has debt exposure of Rs 7,590 crore to debt-laden companies including Rs 3,700 crore to DHFL as of March 2019 and Rs 550 crore in Jet Airways.
Alembic Pharma gets USFDA nod for neuropathic pain management drug
Price as on 22 Jul, 2019 10:32 AM, Click on company names for their live prices.
Shares of Cox & Kings fell as much as 5 per cent to Rs 16.35, hitting lower circuit after Brickworks revises rating of NCDS.
Brickworks revised its rating of NCDs worth Rs 50 crore ($7.25 million) to BWR D from BWR C.
The stock of the travel company also hit its record low.
As of the last close, the stock has fallen 89.7 per cent in this year.
Brokerages bullish on HDFC Bank post Q1 results
Morgan Stanley maintained ‘Overweight’ on HDFC Bank with a target price of Rs 3,000 per share. The global brokerage firm retained the rating due to a strong balance sheet.
Credit Suisse also maintained ‘Outperform’ rating on the private sector lender with a target price of Rs 2,700.
Motilal Oswal Financial Services said that the bank’s performance remained strong, although business growth has shown moderation, reflecting weakness in the consumption-linked lending segments and cautious stance on unsecured loans.
Heavy FII outflow
The super-rich in India are racking their brains to figure out ways to soften the blow from the stiff surcharge on income tax. Data suggests FPI outflows stood at Rs 7,712 crore in July.
Weak cues from global markets Asia stocks eased as investors reduced expectations of an aggressive US rate cut, while heightened West Asia tensions following an Iranian seizure of a British tanker lifted crude oil prices.
Oil prices on a rise Oil prices rose amid high tensions in the West Asia after a British tanker was seized by the Iranian military at the end of last week. Brent crude futures were up 51 cents, or 0.8 per cent, at $62.98 a barrel.
Technical indicators hint at further downside
Mazhar Mohammad of Chartviewindia.in said the price action of last two sessions washed out the gains of the entire pullback rally from the lows of 11,461–707 range, which lasted six sessions. This kind of faster retracement on the downside clearly suggests that a fresh leg of the downswing is in progress.
The rupee too breathed bad. The domestic unit on Monday opened 10 paise down at 68.91 against the US dollar on account of some buying in American currency by banks and importers amid sustained selling by foreign institutional investors.
DHFL is likely to announce a deal with special situations investor AION Capital for a a majority stake in the housing finance company, sources told ET Now. The deal would lead to infusion of $1.5 billion into the debt-ridden firm. With this, DHFL promoters’ family stake is likely to come down to 10 per cent.
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OPENING BELL: Sensex slips 200 pts, Nifty tests 11,350; HDFC Bank, IndiGo drop 2% each
Sensex gains 142 points, Nifty tests 11,400; Rupee opens at 68.99 against dollar
Singapore trading sets stage for negative start
Nifty futures on the Singapore Exchange were trading 29.50 points, or 0.26 per cent, lower at 11,400, indicating a negative start for Dalal Street.
Tech view: Nifty forms Long Black Day candle
Selling intensified in Nifty50 on Friday, as the index slipped below its crucial support at 11,450 with ease, signalling a meek surrender by the bulls. The index, which last tested this level in May, could drift towards the 11,333-300 range in the coming sessions. Any gain towards the 11,500 level, meanwhile, is likely to be sold into, said analysts.
Majority BSE500 stocks below 200-DMA
The sharp selloff in mid- and smallcap shares in recent weeks has resulted in almost 63 per cent of the BSE-500 index constituents trading below their 200-day moving average — a key sentiment indicator. When an index or a stock closes below the 200-DMA, it is said to be in a long-term downtrend and vice-versa.
Asian shares ease on West Asia tensions
Asia stocks eased as investors reduced expectations of an aggressive US rate cut, while heightened West Asia tensions following an Iranian seizure of a British tanker lifted crude oil prices. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.1 per cent. South Korea's KOSPI shed 0.3 per cent, Australian stocks lost 0.2 per cent and Japan's Nikkei fell 0.5 per cent.
Oil prices climb on Iran-Britain tension
Oil prices rose amid high tensions in the West Asia after a British tanker was seized by the Iranian military at the end of last week. Brent crude futures were up 51 cents, or 0.8 per cent, at $62.98 a barrel. The international benchmark rose to as high as $63.47 earlier. West Texas Intermediate (WTI) crude futures were up 15 cents, or 0.3 per cent, at $55.78.
US stocks fell on Friday
The Dow Jones Industrial Average fell 68.77 points, or 0.25 per cent, to 27,154.2, the S&P500 index lost 18.5 points, or 0.62 per cent, to 2,976.61 and the Nasdaq Composite index dropped 60.75 points, or 0.74 per cent, to 8,146.49.
FPIs sell Rs 950 cr worth equities
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 950.15 crore on Friday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 734 crore, data suggests.
Sensex on Friday
BSE Sensex closed 560.45 points, or 1.44 per cent, lower at 38,337.01. While NSE Nifty ended at 11,419.25, down 177.65 points or 1.53 per cent.
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