Business News›Traders' Diary: Nifty has support at 10,480-10,540 zone
Economic Times | 15 Jul, 2020 | 09.18AM IST
Traders' Diary: Nifty has support at 10,480-10,540 zone
RIL and financials lead the market fall as 27 of 30 Sensex stocks end the day in the red
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Oberoi Realty Q1 results: Net profit drops 82% to Rs 28 crore
Oberoi Realty on Tuesday reported a 82 per cent decline in its consolidated net profit at Rs 28.07 crore for the quarter ended June. Its net profit stood at Rs 152.07 crore in the year-ago period, the Mumbai-based realty firm said in a regulatory filing. Total income also declined to Rs 126.86 crore in the first quarter of ongoing fiscal from Rs 618.10 crore in the corresponding period of the previous year.
PSBs to demand govt intervention to defer stake dilution deadline
State-run banks are poised to demand that the government convince the regulator to defer the deadline on bringing down its stake in them to below 75 percent as the lenders would not be in a position to line up share sale due to the adverse market conditions. If the government does not prevail over the regulator, it may end up breaching the Securities & Exchange Board of India’s mandate on promoter shareholding in listed companies which should not be more than 75 percent.
YES Bank raises nearly Rs 4,100 crore through anchor allotment
YES Bank on Tuesday raised nearly Rs 4,100 crore through anchor allotments ahead of its follow-on public offer’s (FPO) opening on Wednesday. The private lender allotted 3,41,53,84,614 equity shares to a total of 14 anchor investors. More than half of the anchor book was subscribed by Bay Tree India Holdings.
Sebi slaps Rs 10 lakh fine on Indiabulls Real Estate CFO for insider trading
Markets regulator Sebi has imposed Rs 10 lakh penalty on Indiabulls Real Estate chief financial officer Anil Mittal for indulging in insider trading. Securities and Exchange Board of India (Sebi) carried out an analysis of the trading activity in the scrip of Indiabulls Real Estate Limited (IBREL) during January-June period 2017.
Burman family picks up 8.8% stake in Eveready
The Burman family, promoters of packaged consumer goods maker Dabur India, has picked up 8.8% stake in battery maker Eveready Industries, increasing its existing stake in the Kolkata-based company to 20%. This follows a block deal on Tuesday for 64 lakh shares in the country’s largest dry cell batter maker. The share purchase is a personal investment by the Burman family, an official directly aware of the developments said.
Sebi extends deadline for public comments on social stock exchange report till Aug 15
In view of the situation arising due to the COVID-19 pandemic, markets regulator Sebi on Tuesday extended the deadline till August 15 for sending public comments on a report on social stock exchange which allows for direct listing of non-profit organisations. This is the second time that the deadline for receiving public comments has been extended. The initial deadline was June 30, which was extended to July 15 by the regulator.
Tilden Park invests over Rs 2,000 crore in YES Bank anchor book
US-based alternative asset manager Tilden Park Capital Management LP has invested more than Rs 2,000 crore in the YES Bank anchor book, a source close to the development said on Tuesday. The bank has raised more than Rs 4,000 crore in anchor allotment at Rs 12 per share from investors which include Singapore-based fund management company Amansa Capital, UK-based fund management company Jupiter Funds and HDFC Life on the domestic front, the source added.
Dow Jones opens lower on virus woes, US-China tensions
Wall Street opened lower on Tuesday following a mixed bag of quarterly earnings from U.S. lenders and simmering tensions between Washington and Beijing, while new coronavirus restrictions in California hit tech stocks for a second straight day. The Dow Jones Industrial Average fell 41.63 points, or 0.16 per cent, at the open to 26,044.17.
Opec sees oil demand soaring in 2021 but still below 2019
Global oil demand will soar by a record 7 million barrels per day (bpd) in 2021 as the global economy recovers from the coronavirus crisis but will remain below 2019 levels, OPEC said in its monthly report. It was the first report in which OPEC assessed oil markets next year. It said the forecast assumed no further downside risks materialised in 2021 such as U.S.-China trade tensions, high debt levels or a second wave of coronavirus infections.
Nifty needs to regain 10,670-10,690 zone for bulls to resume charge: Manish Shah
"If we see some reversal signals in the support zone at 10,480-10,540, the rally could resume. Nifty50 needs to regain the 10,670-10,690 zone for the bulls to resume charge," said Manish Shah, an independent technical analyst.
Chandan Taparia of Motilal Oswal Securities said the index has seen a consolidation breakdown by closing below its weekly support at 10,650. "Mechanical indicator RSI has given a negative crossover and is showing signs of profit booking decline," Taparia said, noting that the index has broken its rising support trend line by connecting all the recent swing lows.
Continue with stock-specific trading: Ajit Mishra
"We’re not surprised by the fall as markets were signaling exhaustion at the higher levels. Indications are in the favour of a further decline and Nifty could test 10,500 levels. Though the global markets are still buoyant, rising cases in India have raised fears of the imposition of lockdown in certain parts, which could dent the pace of recovery. We advise continuing with the stock-specific trading approach and accumulating defensive on dips," said Ajit Mishra, VP - Research, Religare Broking.
"Markets plunged sharply lower and lost nearly two percent. The benchmark index, Nifty, finally ended the consolidation phase with a breakdown, citing subdued global markets, rising COVID-19 cases and higher than expected inflation numbers. The decline was widespread and almost all the sectors, barring healthcare and telecom, ended in losses wherein Banking, Metal and Auto were the top losers," said Ajit Mishra, VP - Research, Religare Broking.
This is how the 30-pack Sensex moved in today's session. It touched a high of 36,538.10 and a low of 35,877.42 to finally settle at 36,033.06
CLOSING BELL: Banks, IT give Sensex 661-point hit; Nifty barely holds above 10,600; IndusInd, Axis Bank plunge 5% each
RIL and financials lead the market fall
27 of 30 Sensex stocks end the day in the red
Index contributors: HDFC, HDFC Bank, RIL, Axis Bank, Kotak Bank
Top Index gainers: Titan (0.93%), Bharti Airtel (0.21%), Bajaj Auto (0.02%)
Top Index losers: IndusInd Bank (5.49%), Axis Bank (4.88%), Maruti (3.59%)
All BSE sectoral indices except healthcare and telecom end the day in the red
S&P BSE Telecom biggest sectoral gainer, up 0.07%
S&P BSE BANKEX biggest sectoral loser, down 3.06%
Volume toppers: RIL, Bajaj Fin, HDFC Bank, Bharti Airtel, IndusInd Bank
This is how the entertainment stocks are faring in today's trade.
Price as on 14 Jul, 2020 03:18 PM, Click on company names for their live prices.
The market is currently supportive of advances in the second line of leader stocks and both these stocks fall under that category.
Mindtree Q1 results: Net profit more than doubles to Rs 213 crore
IT firm Mindtree on Tuesday reported a 129.8 per cent rise in consolidated net profit at Rs 213 crore for the June 2020 quarter. The company had posted a net profit of Rs 92.7 crore in the same period last year, Mindtree said in a regulatory filing. The Bengaluru-based company saw its revenue grow 4.1 per cent to Rs 1,908.8 crore in the quarter under review from Rs 1,834.2 crore in the year-ago period, it added.
Titan and Bharti Airtel the only two stocks trading in the green
Price as on 14 Jul, 2020 03:07 PM, Click on company names for their live prices.
The Indian rupee tumbled 23 paise to settle at 75.42 (provisional) against the US dollar on Tuesday as risk appetite remained weak amid heavy selling in domestic equities and strengthening American currency. The rupee, which had opened at 75.33 at the interbank forex market, lost ground and settled at 75.42 against US dollar, down 23 paise over its last close.
I would also look for dollar weakness to be accompanied by strength in gold and possibly even the crypto currencies like Bitcoin. As for other emerging markets, a declining dollar environment might benefit a little bit at the margin but not as much as the alternatives, says the faculty member, Yale University.
India’s Shapoorji Pallonji Group is in preliminary talks with Brookfield Asset Management Inc. to raise as much as $400 million in structured debt to help repay maturing obligations, according to people with knowledge of the matter.
S&P BSE AUTO down over 2%. All index stocks trading in the red; Maruti, Eicher Motor, Bosch down over 3% each
The 30-share flagship BSE Sensex plunged 752 points to 35,941 while broader NSE Nifty tumbled 219 points to 10,583. Bank, auto, financials, media and metal stocks, which surged in recent rally, were under heavy pressure.
Forex Center: This is how the major currencies are faring against each other
Here are the top losers in the tourism and hospitality sector
Price as on 14 Jul, 2020 02:05 PM, Click on company names for their live prices.
S&P BSE Telecom the only sectoral index in the green, up 0.50%. This is how the index stocks are performing
Google in advanced talks to invest $4 bn in Jio Platforms
SENSEX TANKS 700 POINTS
Bank stocks bleed; here are the top losers from the banking space
Price as on 14 Jul, 2020 12:49 PM, Click on company names for their live prices.
Casual dining chain Barbeque Nation Hospitality has received markets regulator Sebi's approval to raise about Rs 1,000-1,200 crore through an initial public offering. The IPO comprises a fresh issue of shares worth Rs 275 crore and an offer-for-sale of up to 98,22,947 equity shares, according to the draft papers filed with the Securities and Exchange Board of India (Sebi).
June WPI inflation at -1.81%
Here's a word of advice from market expert Sandip Sabharwal
Don't be enamoured by #Multibaggers If your Investment Strategy cand consistently beat the markets by just 3-5% ev… https://t.co/2WpfaKT0zG
RBI may hold/scale down easing till inflation comes down further: Anand Rathi
"The rise in inflation since the lockdown seems more due to supply disruption than excess demand. As lockdown restrictions are withdrawn, this would be addressed. In contrast, the growth situation remains the key concern and the RBI is likely maintain the accommodative stance. That said, the RBI may hold/scale down further easing till inflation comes down further," Anand Rathi said in a report.
Shares of BF Utilities surged 10 per cent in Tuesday’s early trade after data showed ace equity investor and D-Mart promoter Radhakishan Damani acquired 4.91 lakh shares in the company during June quarter. Latest shareholding data, filed by the company on July 13, showed Damani held 1.30 per cent stake in the company as on June 30. He was not among the key shareholders in the preceding quarter ended March 31.
Choksey's Mantra: Stick to quality, avoid momentum-driven mid & smallcaps
A safe approach would be to keep profit booking at some level in some of the stocks where you are getting advantage on the price on which you had purchased,says Deven R. Choksey, MD, KR Choksey Investment Managers.
In the next couple of sessions we expect USDINR (Spot) could quote in the range of 75.05 and 75.50: MOSL
Majority of tourism and hospitality stocks in red as surge in virus brings back restrictions in few areas
Price as on 14 Jul, 2020 10:37 AM, Click on company names for their live prices.
Top Sensex drags in morning session
Future Consumer, BHEL, YES Bank, SBI among most active stocks
Price as on 14 Jul, 2020 09:32 AM, Click on company names for their live prices.
OPENING BELL: Sensex falls 235 points, Nifty50 slips below 10,750; HDFC, HDFC Bank drop 2% each
FPIs pricing in slower rebound
Foreign investors have begun to price in a slower rebound for Indian stocks this year on concerns that the relatively meagre stimulus the government has delivered for businesses and consumers will leave the economy trailing its main rivals. Despite pouring about $1.98 billion into Indian stocks since late March, foreign investors are still net sellers this year with outflows of $2.75 billion. In March alone, they pulled out $8.35 billion, according to stock exchange data.
Sensex historically delinked from economy
Indian stock market returns have little bearing on the underlying economy if one were to go by statistical correlation and historical examples. For instance, the Sensex delivered 224% return in FY1992, while real GDP stood at a measly 1.12%. When real GDP growth was 8.5% in FY2011, the highest in the last decade, Sensex return that year was 6.6%. In last five financial years, Sensex's average annual return has been 2.9% compared with average real GDP growth of 6.7%. The BSE500’s correlation was a little stronger in last two decades, but Sensex's was extremely weak over a 40-year time frame.
India Inc set for record fund raise
Indian companies are set to raise a record $30-35 billion in share sales this year, an internal estimate by Wall Street bank JP Morgan showed, with local lenders and businesses tapping into global liquidity through qualified institutional placements, rights issues, follow-on public offers and block deals. Indian companies have already raised about $22 billion so far this year.
LIC gains market share amid Covid disruption
LIC legacy corporate tie-ups and extensive distribution network have helped it extend dominance through the coronavirus pandemic, with its market share in the new business premium rising to 74% in June from 69% in March. The consolidation in market share is despite the insurance behemoth’s NBP declining by 18% in the first quarter of the fiscal year against the same period last year, IRDAI data showed
Bharat Bond offers good deal to high earners
Retail investors falling under the lower income-tax brackets could give the upcoming Bharat Bond Exchange Traded Fund’s follow-up offering a miss. Investment advisors said the product is better suited for rich individuals who are looking for liquidity and better taxefficient returns. The offering of this debt fund — the only bond ETF in the country — will open on July 14 for three days. The bond would work well for those in the higher tax brackets and whose annual income exceeds Rs 10 lakh a year as gives both liquidity and tax-efficient returns, they said.
RIL spike makes Ambani world’s 8th richest
The RIL stock took 40 years to reach Rs 6 lakh crore in market capitalisation on November 1, 2017, but added the next Rs 6 lakh crore in less than four years. Not transformed into a consumer company from a materials and energy producer, the stock on Monday crossed the Rs 12 lakh crore mark in market-cap, which more than double that of the country’s all telecom, retail and refinery stocks put together.
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 221.76 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 1,485.59 crore, data suggests.
Rossari IPO subscribed 60% on Day 1
The initial public offer of specialty chemicals manufacturer Rossari Biotech was subscribed 60 per cent on the first day of bidding on Monday. The IPO received bids for 49,30,030 shares against the total issue size of 81,73,530 shares. The initial public offer comprises a fresh issue of Rs 50 crore and an offer for sale of over 1 crore equity shares including anchor portion of 35,02,940 equity shares.
Oil slips on demand recovery fears
Oil prices fell around 2 per cent in early trade on Tuesday on worries that new clampdowns on businesses to stem surging coronavirus cases in California and other US states could threaten the nascent recovery in fuel demand. US WTI crude futures slid 84 cents, or 2.1 per cent, to $39.26 a barrel, while Brent crude futures fell 77 cents, or 1.8 per cent to $41.95 a barrel.
Tech View: Nifty50 gives up at the 200-day SMA
Nifty50 on Monday saw profit booking at the 200-day simple moving average (SMA) hurdle, as it cut substantial intraday gains to end half-a-per cent higher. The index now needs to hold above 10,700-level to extend its move towards 11,000 level. A key support exists at 10,650 level
SGX Nifty signals negative start
Nifty futures on the Singapore Exchange traded 37 points, or 0.35 per cent lower at 10,774, in signs that Dalal Street was headed for a negative start on Tuesday.
Hong Kong, China stocks fall up to 0.5%
Hong Kong shares opened lower Tuesday after the city joined several countries in reimposing containment measures as the virus sees a resurgence, fuelling worries about the economic recovery. The Hang Seng Index slipped 0.42 percent, or 108.96 points, to 25,663.16. The benchmark Shanghai Composite Index fell 0.24 percent, or 8.26 points, to 3,435.02, while the Shenzhen Composite Index on China's second exchange eased 0.09 percent, or 2.06 points, to 2,327.34.
Japan stocks open lower
Tokyo stocks opened lower on Tuesday as sentiment worsened after rallies fizzled on Wall Street due to fresh worries over the coronavirus and renewed US-China tensions. The benchmark Nikkei 225 index was down 0.58 percent or 131.39 points at 22,653.35 in early trade, while the broader Topix index slipped 0.40 percent or 6.35 points to 1,566.67.
US stocks end mixed as Covid-19 uncertainty weighs
Wall Street's major averages erased strong earlier gains to finish mixed as investors focused on a continued spike in coronavirus infections in the United States.On Monday, the Dow Jones Industrial Average rose 10.50 points, or 0.04 per cent, to 26,085.80. The S&P 500 dropped 29.82 points, or 0.94 per cent, to 3,155.22. The Nasdaq Composite Index shed 226.60 points, or 2.13 per cent, to 10,390.84.