Live Markets Commentary
Sify Editors @ 2:00 PM
RIL, Maruti, Adani steal the show in Nifty - 10k rally
The Nifty50 index of the National Stock Exchange hit the 10,000 mark for the first ever time on Tuesday morning, and with the mood staying bullish these days with investors betting on a reduction in interest rates early next month, looks set for greater heights.
The BSE benchmark Sensex, for its part, is hovering around record high as well. Although some of the components of the Sensex and the Nifty50 have not fared extraordinarily well in recent months and suffered some setbacks here and there, a few have done exceptionally well, giving handsome returns to investors in the last one month.
Quarterly results have been fairly good and the report card of index heavyweight Reliance Industries is proving to be a fairly strong trigger for the market.
Among the Nifty50 stocks that have done quite well in the past 4-5 weeks are Axis Bank (10.3%), Tata Consultancy Services (9.4%), Bharti Airtel (14%), Bharti Infratel (11.2%), State Bank of India (6%), Vedanta (13.5%), Indiabulls Housing Finance (nealy 10%), HDFC Bank (8%), Yes Bank (13%), ICICI Bank (5.5%) Hindalco (14.8%), BPCL (14.3%), Aurobindo Pharma (11%), Wipro (13%), Ambuja Cements (11%), Zee Entertainment Enterprises (10.3%), UltraTech Cement (7%), Eicher Motors (7%) and HCL Technologies (6%).
Lupin, Hindustan Unilever, Cipla, Sun Pharmaceutical Industries, Tata Motors, Tech Mahindra, Maruti Suzuki, IndusInd Bank, Adani Ports, Larsen & Toubro, NTPC and Bosch saw some good sessions and handed out moderate returns on investments.
Indian Oil Corporation, HDFC and ITC gave negative returns in the last one month. ITC shed nearly 7%, while the other two stocks are down marginally, compared to their levels in the last week of June 2017.
In the last one year, Adani Ports has surged more than 70% and Maruti Suzuki has jumped 65%. Indiabulls Housing Finance, Hindalco, Vedanta, Tata Steel, Reliance Industries have gained between 50% and 60%.
HDFC Bank, State Bank of India, Yes Bank, Kotak Bank, IndusInd Bank, Hindustan Unilever and Eicher Motors have also recorded impressive gains.
Lupin (down 35%), Tech Mahindra (down 22.8%), Tata Motors (down 10%), Sun Pharmaceutical Industries (down 29.8%) and Dr Reddy's Laboratories (down 22%) have posted losses in the last one year.
The Nifty50 has gained about 4.8% in the last one month. Year-to-date, the index has risen over 17%.
At 9956.20, around 55 points off a record high of 10,011.30, the Nifty50 is now down 10.20 points o r0.1% from its previous close. The Sensex, which hit a fresh record high at 32,374.30 in early trades today, is currently up with a slender gain 32,247.34.
Sify Editors @ 1:20 PM
Profit booking pulls equity indices from record highs
After touching record highs during the early morning session, the key Indian equity indices succumbed to profit booking and traded with marginal losses during the mid-afternoon session on Tuesday.
Expectations of healthy quarterly results, coupled with broadly positive global cues, lifted both the NSE Nifty and BSE Sensex to experience "gap-up" opening from their previous session's close and touch new record highs during early hours of trade.
Besides, factors such as hopes of a lending rate cut by the Reserve Bank of India in its next policy review meet, along with inflows of foreign funds and consistent projection of healthy economic growth, enhanced investors risk taking appetite.
The wider Nifty of the National Stock Exchange (NSE) traded 15.90 points or 0.16 per cent lower at 9,950.50 points.
The Nifty, which breached the 10,000-points level during the day's early trade (at 9.15 a.m.) just after the pre-open session, touched a high of 10,011.30 points during the intra-day trade.
The 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 32,350.71 points, traded at 32,205.13 points -- down 40.74 points or 0.13 per cent -- from its previous close at 32,245.87 points.
The Sensex has so far touched a high of 32,374.30 points during intra-day trade.
"India's NSE Nifty index hit the 10,000-mark for the first time on Tuesday, further cementing its position as one of Asia's best performing stock market gauges. Indian shares have hit multiple records this year amid optimism about Prime Minister Narendra Modi's policies, with the economy expanding at about seven times the pace of Japan," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
"Overseas investors have bought $20.2 billion worth of local bonds so far in 2017, according to depository data. A big factor for the phenomenal rise in stock value has been the shift of Indian savers to more financial assets as prices of gold and property moderated after the government's ban on high-value currency notes," Desai added.
On Monday, the benchmark indices were lifted to new highs on the back of healthy quarterly results, coupled with intense buying activity witnessed in index heavyweights such as HDFC Bank, Reliance Industries (RIL), ITC and Infosys.
The Nifty rose by 51.15 points, or 0.52 per cent, to close at a fresh high of 9,966.40 points, after it touched a record high of 9,982.05 points during intra-day trade.
Similarly, the Sensex closed at a new high of 32,245.87 points -- up 216.98 points, or 0.68 per cent. It touched a record intra-day high of 32,320.86 points.
Sify Editors @ 12:00 PM
Tata Communications jumps on strong EBITDA growth
Shares of Tata Communications Ltd jumped as much as 4.6 pct, their biggest intraday pct gain since June 9.
Co reported a 22 pct lower June-qtr consol profit on Monday. However, EBITDA grew 12.6 pct QoQ on the back of growth in data services and lower operating costs.
"EBITDA performance was better than expected and investors are now looking forward to the conference call with optimism on outlook details," said Manoj Behera from PhillipCapital (India) Private Limited.
Up to Monday's close, stock had risen 3.2 pct this year.
Sify Editors @ 12:00 PM
Bharti Infratel hits over 1-1/2-year high after June-quarter results
Bharti Infratel Ltd surges as much as 3.9 pct to 425 rupees, its highest since Jan 6, 2016.
Telecom tower co says it added 7,795 net co-locations in June quarter on consolidated basis, its highest since its IPO.
Co posted June-qtr consolidated revenue from ops of 35.24 bln rupees ($547.46 mln), up 9.8 pct, with sharing revenue per tower/month up 7.8 pct y/y.
But June-qtr profit after tax fell 12 pct due to higher tax expenses.
Nomura says it expects stock price reaction to be positive as tenancy surge and EBITDA margin uptick bode well even though PAT was below consensus.
Stock had risen 19.1 pct this year as of Monday's close.
Sify Editors @ 11:30 AM
Indices touch record highs, profit booking caps gains
Expectations of healthy quarterly results, coupled with broadly positive global cues, lifted the key Indian equity indices -- NSE Nifty and BSE Sensex -- to touch their new record highs during the morning trade session on Tuesday.
According to market observers, factors such as hopes of a lending rate cut by the Reserve Bank of India (RBI) in its next policy review meet, along with inflows of foreign funds and consistent projection of healthy economic growth enhanced investors risk taking appetite.
The two key equity indices experienced the Gap-Up opening from their Monday's close.
The NSE Nifty breached the 10,000-points level during the day's early trade session at 9.15 a.m. just after the pre-open session which lasted for 15 minutes.
The wider Nifty of the National Stock Exchange (NSE) touched a high of 10,011.30 points.
Similarly, the 30-scrip Sensitive Index (Sensex) of the BSE touched a new high of 32,374.30 points during the early-morning trade session.
However, soon afterwards, profit booking dragged the indices lower.
The NSE Nifty inched-up to 9,966.85 points.
The BSE Sensex stood at 32,252.91 points -- up 7.04 points, or 0.02 per cent.
Sify Editors @ 11:00 AM
Idea Cellular in demand on buzz CCI has approved Idea-Vodafone merger proposal
It's ringing gains at telecom stock Idea Cellular counter on Tuesday morning, riding on reports that the Competition Commission of India has unconditionally approved the proposed merger of Vodafone India and its wholly-owned subsidiary Vodafone Mobile Services, with Idea Cellular.
The merger, once executed, will create the country's biggest phone company in terms of subscriber base. At US$23 billion, the transaction is the largest in terms of value in the merger & acquisition history of the country. It is felt that the merger will help create significant efficiencies and synergies for the teleco.
It is reported that the CCI has concluded that there is unlikely to be an appreciable adverse effect on competition from the proposed merger of the two entities.
Idea Cellular rose to Rs 96.90 in opening trades, and remains firmly entrenched in positive territory at Rs 96.10, up 4.7% from its previous closing price.
On BSE, nearly 1.55 million shares have changed hands so far at the Idea Cellular counter this morning. On the National Stock Exchange, the counter has clocked a volume of nearly 15 million shares so far in the session.
The stock had touched a high of Rs 123.50 on 20 March 2017 after Idea Cellular announced the merger proposal. Investors grabbed the stock then, hoping that the 35% market share Idea would command post merger would significantly boost the revenue of the company.
Post the transaction, Vodafone will own 45.1% stake in the merged entity while Idea Cellula's parent, the Aditya Birla group, will have 26% shareholding after paying Rs 3874 crore cash for a 4.9 per cent stake.The rest will be held by other shareholders.
After hitting those highs in March this year, Idea Cellular suffered some sharp setbacks, with a disappointing January - March 2017 quarter report card and Reliance Jio's attractive data offers prompted investors to press heavy sales at the counter. The stock declined to around Rs 76 by mid-June before gradually edging higher again
Idea Cellular posted its second straight quarterly loss, hurt by weak sales and falling margins followingReliance Jio's free services offer. The company posted consolidated net loss of Rs 328 crore in the three months to 31 March 2017, as against a net profit of Rs 452 crore a year ago. Net loss from its core telecom operations was even higher at Rs 430 crore on a standalone basis.
Sify Editors @ 10:25 AM
Heromotocorp (up by 1.09%), NTPC (0.85%), Tata Steel (0.81%), Bajaj Auto (0.71%) , ICICI Bank (0.64%) and HDFC Bank (0.60%) are the top trending stocks on BSE sensex in early morning trade. Hero will be posting its quarterly results today and is trading at 3731.55. Among the losers Asian Paints (down by 0.36%), Cipla (0.40%), Wipro (0.55%), ONGC (0.74%), Lupin (0.66%) and Tata Motors (1.29%) suffered losses. Tata Motors was trading at 458.35. Asian Paints which seems to be marginally down will be posting its quarterly results today.
Sify Editors @ 10:05 AM
Results of these 4 scrips today, expect movement
Axis Bank, Asian Paints, Federal Bank, and Kirloskar Pumps are among the top stocks to announce their results today, July 25 2017. Expect movement on these scrips.
Among the key things to watch for in Axis Bank is the loan books and non performing assets. 3% or 11232 crore of the bank's loan books are under watchlist. Net interest income is expected to rise 6.1% to 4791.8 crore as against 4516.9 crore in previous fiscal. Non performing assets below 5.1% should be termed positive.
Axis Bank has been trading in a range of Rs 510-534.30 on the BSE in the past five days. Market observers suggested a buy rating for a target price of Rs 550. The 52 week high and low of the scrip have been Rs 638 on September 7 2016 and 424 on January 10 2017 respectively.
Asian Paints too has seen quick movement on the BSE from 1133.25-1158.05 in this time period.
Motilal Oswal Securities recommended a buy rating on Federal Bank, that closed at Rs 117.05 on July 24 2017. The scrip five days ago traded at 114.15.
Kirloskar Brothers, manufacturers of industrial valves, traded at Rs 267.80. It was trading in the same price five days ago too.
Sify Editors @ 9:25 AM
Expect Nifty at 10036 on July 25: Prakash Gaba
Finally the bigger news on Tuesday, July 25 is the Nifty entering the dream figure of a five figure mark.
NSE Nifty dozed through the opening session, reaching a high of 10010.55. The index closed at trading hours on Monday at 9966.40.
There is a consensus that the Nifty in trading hours could actually better its pre-opening.
Nifty expert Prakash Gaba's outlook for Tuesday, July 25 finally read of a five figure mark. After nearly two weeks of intense speculation, his report card for the day has finally come up with the dream figure.
"Technically now the next logical target is 10036 as long as 9920 holds," his blog read.