US stocks treaded water on Wednesday as trade-related weakness hurt CSX Corp's profit, leading to a decline in railroad stocks and offsetting gains in shares of Abbott and Qualcomm.
Shares of CSX recorded the steepest fall on the benchmark index, sliding 8.3% after the company posted lower-than-expected quarterly profit and cut its full-year revenue forecast.
‘Sell on rallies’ continues to be our preferred strategy. Daily strength indicator RSI and momentum oscillator Stochastic have both turned positive and are above their respective reference lines, indicating a positive bias. The trend-deciding level is 11,680. If the index stays above this level, we may witness a further rally up to 11,710 and 11,735 levels. However, a trade below this level may trigger profit booking
- Rajesh Palviya, Axis Securities
Nifty tested its 40-day exponential moving average, which acted as a cap for the day. It also went on to test the upper end of a rising channel on the hourly chart. In terms of Fibonacci retracement, the index has retraced nearly 50% of the post-Budget decline. Hence, the pullback is likely to subside near 11,700 and 11,720 levels, which would result in a fresh downward move. On the downside, the junction of the recent low and the daily lower Bollinger Band i.e. 11,461-11,450 will be the initial target area to watch out for
- Gaurav Ratnaparkhi, Sharekhan
Nifty formed a small-bodied candle on the daily scale as buying emerged on every dip and supports shifted higher. Now it has to continue to hold above 11,650 to extend the gains towards 11,720 and then 11,750 levels, while on the downside supports are seen at 11,600 and then 11,550 levels
We expect the market to remain choppy in the near term in the backdrop of weak domestic sentiment given the ongoing economic slowdown. The monsoon has shown considerable improvement over the past 1-2 weeks, which is positive for Indian economy. On the global front, geopolitical tensions between the US and Iran could have a bearing on Indian as crude prices have inched higher in the recent past and is likely to keep the market participants on edge
Nifty witnessed pressure above 11,700, which are bearish kumo levels and it is expected that as long as Nifty doesn't close above 11,720 levels it can slip toward 11,600. The index also formed bearish harmonic ab=cd patterns on hourly charts, which supports the postulate of some dip in Nifty
- Gaurav Bissa, AVP Derivatives & Technicals, LKP Securities
It seems foreign portfolio investors and mutual funds are losing patience with the Yes Bank stock, which has eroded 75 per cent of investor wealth in last one year on back-to-back poor corporate earnings, leaving retail investors in a fix.
June quarter shareholding data showed mutual funds’ holding in the private sector lender declined to 6.59 per cent as of June 30, 2019 from 9.54 per cent at the end of the March quarter, 2019. Likewise, foreign portfolio investors’ (FPI) holdings dropped to 33.69 per cent in Q1FY20 from 40.33 per cent at the end of Q4FY19.
Analysts weren’t surprised by Yes Bank’s June quarter earnings, even though the private lender reported a 91 per cent plunge in net profit thanks to a one-off mark-to-market provisioning of Rs 1,109 crore.
Analysts in an ETNOW poll had projected the bank to report Rs 164 crore profit for the quarter. The private lender had reported Rs 1,260 crore profit for the same quarter last year.
Wipro reported 12.58 per cent year-on-year (YoY) rise in net profit at Rs 2,387.60 crore for the quarter ended June, 2019. The figure came in line with an analyst estimate of Rs 2,380 crore projected in an ETNow poll. Consolidated revenue for the quarter increased 5.28 per cent YoY to Rs 14,716.10 crore from Rs 13,977.70 crore reported for the corresponding quarter last year.
Market was rangebound while Bank Nifty outperformed in expectations of transfer of RBI reserve to the government. Q1FY20 is unlikely to provide a cheer to investors due to risk of downgrade in FY20 earnings given muted expectations. Finance and cement sectors are expected to be strong performers, while auto, metal and oil & gas sectors are likely to underperform due to weak consumer demand, lower realizations and slowdown in the global economy
- Vinod Nair, Head of Research, Geojit Financial Services
YES Bank on Wednesday said its profit plunged 91 per cent on a yearly basis to Rs 113.80 crore in the June quarter, dented by one-off impact from mark to market provisions of Rs 1,109 crore. Total provisions came in at Rs 1,784.1 crore, up three times over Rs 625.70 crore made in the same quarter last year. The bank made Rs 3,661.70 crore provisions in the March quarter.
IT firm Wipro on Wednesday reported a 12.8 per cent year-on-year rise in profit at Rs 2,387.60 crore compared with Rs 2,120.80 crore in the same quarter last year. This was largely in line with Rs 2,380 crore net estimated by analysts in an ET NOW poll. Sequentially, the profit was down 3.86 per cent over the March quarter's Rs 2,483.50 crore.
CLOSING BELL: Sensex gains 85 points, Nifty just shy of 11,700; DHFL rallies 11%, SpiceJet 8%
Is strong IPO lineup suggesting a revival in broader market sentiment?
Dip in rural demand to slow FMCG growth in 2019: Nielsen
The FMCG sector in India will face a slowdown in 2019 with a growth rate of around 9-10 per cent impacted by a dip in demand, particularly the rural, according to a report. The FMCG growth rate for the first half of 2019 is around 12 per cent, which is lower than the previous forecast of 13-14 per cent, the report by data analytics firm Nielsen said.
Shares in China finished lower in thin trade on Wednesday, extending the previous day's small losses as investors continued to fret over slowing growth and the impact of the Sino-US trade dispute, and await more signs of support from Beijing.
Top 10 NSE losers
Price as on 17 Jul, 2019 01:47 PM, Click on company names for their live prices.
Bimal Jalan Panel has finalised the report today: Sources
Expect Nifty to cross 12,000 by December end: ETMarkets Poll
Annai Infra gets Sebi approval to float IPO
Annai Infra Developers, an engineering, procurement and construction firm, has received approval from markets regulator Sebi to float its initial public offer (IPO).
The watchdog issued its "observation" letter on Annai Infra Developers' IPO proposal on July 12, 2019, according to information available on the Sebi website.
Sebi's observations are necessary for any company to launch public issues like initial public offer, follow-on public offer and rights issue.
Shares of DHFL bounced for the second straight day, rising 10 per cent, amid reports that its lenders may accept limited haircuts to rescue the struggling NBFC. A debt restructuring plan is in the works, and the company looks determined to bounce back.
In a note alongside its March quarter earnings, the company last week said that there was “significant doubt on the ability of the company to continue as a going concern,” making investors to dump the stock.
Top 10 NSE gainers
Price as on 17 Jul, 2019 12:57 PM, Click on company names for their live prices.
Strides plunges 8% as USFDA finds significant violation at facility
Shares of Strides Pharma Sciences took a beating in Wednesday’s trade after USFDA said it found adulteration and “significant violations” of current good manufacturing practice (CGMP) regulations at the company's plant in Puducherry.
“Multiple bags of uncontrolled CGMP documents with color coding indicating they were from drug production, quality, and laboratory operations were awaiting shredding,” USFDA said.
The US drug regulator said it also found a blue binder containing CGMP records, including batch records for US drug products, discarded with other records in “a 55-gallon drum” in scrap yard.
Shares of Cox & Kings dropped nearly 5 per cent to hit fresh all-time low of Rs 19 on Wednesday after the company defaulted on repayments for the fourth time in three weeks.
The firm on Tuesday said it had defaulted on its repayment obligations on commercial papers worth Rs 45 crore, while the interest of Rs 41 lakh could not be timely paid on bonds worth Rs 50 crore.
Last week, Cox & Kings defaulted on commercial paper of Rs 125 crore, a third default of the company in the past fortnight, totaling Rs 325 crore.
DHFL jumps 4% as lenders mull haircuts; restructuring plan likely this week
Shares of DHFL climbed nearly 4 per cent in Wednesday’s trade on reports that lenders to the housing finance company (HFC) were ready to accept limited haircuts in a restructuring plan being worked out for the troubled firm.
The country's fourth largest HFC, which warned on Saturday that its financial situation was grim and business had ground to a halt, met lenders and other debt holders last week to discuss the outline of a rescue package, Reuters reported.
Sources said that efforts were being made to reach consensus and sign off on the plan, which is set to be formally submitted to DHFL's lenders this week.
Shares of YES Bank climbed 4 per cent in Wednesday’s trade ahead of its June quarter results. The stock gained even as the bank was expected to report subdued earnings on rising provisions amid deteriorating asset quality.
Brokerage firm Prabhudas Lilladher projected 84 per cent YoY fall in profit at Rs 201.10 crore on 22 per cent YoY rise in pre-provisioning operating profit.
Kotak Institutional Equities projected a loss of Rs 578.60 crore in Q1FY19 for YES Bank against a net profit of Rs 1,260.40 crore in the corresponding quarter last year.
YES Bank, DHFL, Federal Bank among most active stocks
Price as on 17 Jul, 2019 09:53 AM, Click on company names for their live prices.
Sensex rises 90 points, Nifty tops 11,700; rupee opens at 68.71 against US dollar
Singapore trading sets stage for negative start
Nifty futures on the Singapore Exchange were trading 22 points, or 0.19 per cent, lower at 11,625, indicating a negative start for Dalal Street.
Tech view: Weak advance-decline ratio a worry
Nifty saw follow-through buying on Tuesday, which helped it take out its immediate resistance at 11,650 on a closing basis. The gains after Monday’s Hammer-like candle suggested a possible pullback. But a negative advance-decline ratio still raised questions over the strength of the pullback.
Asian stocks drop on strong US retail data
Asian shares drifted lower on Wednesday after a lacklustre performance by Wall Street, while the dollar got a lift from robust US retail data and a Brexit-driven dive in the pound. Early action was muted with MSCI's broadest index of Asia-Pacific shares outside Japan off 0.18 per cent. Japan's Nikkei eased 0.3 per cent and South Korea 0.8 per cent. E-Mini futures for the S&P500 were flat.
Oil prices steady after overnight weakness
Oil steadied after falling more than 3 per cent overnight, with US crude trailing Brent after US inventory data fell short of expectations, amid conflicting signals from the US and Iran over the disputes that have roiled prices recently. Brent crude futures were up 16 cents at $64.51, or 0.3 per cent.
US stocks ended lower
US stocks closed lower as investors digested the latest corporate earnings reports and Federal Reserve Chairman Jerome Powell's remarks. The Dow Jones Industrial Average index decreased 23.53 points, or 0.09 per cent, to 27,335.63. The S&P500 index went down 10.26 points, or 0.34 per cent, to 3,004.04. The Nasdaq Composite index declined 35.39 points, or 0.43 per cent, to 8,222.80
It's going to rain IPOs next 1 month
Half a dozen companies are likely to hit the primary market in the next month or so to raise about ₹10,000 crore, ending the dry spell in initial public offers (IPOs) that’s prevailed this year. Sterling and Wilson Solar, ASK Investment Managers, Spandana Spoorthy Financial, Affle India, AGS Transact Technologies and Mazagon Dock Shipbuilders among other companies are conducting road shows and planning IPOs by the middle of August, said bankers.
Investors add 41 lakh demat a/c in a year
The recent volatility in the stock market hasn’t deterred new investors from trying their luck in equities. In the one year ended June 30, a good 41 lakh investors opened demat accounts with the depositories, taking the total number of stock market investors in the country to 3.65 crore.
Suzlon, Cox & Kings default on payments
Suzlon Energy said it defaulted on $172 million (Rs 1,200 crore) of foreign currency convertible bonds (FCCBs) that came up for redemption on Tuesday. On the other hand, Cox and Kings defaulted on a Rs 45-crore commercial paper and interest payment on a NCD to the tune of Rs. 41,09,589.
DIIs buy Rs 638 cr worth equities
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 445 crore on Tuesday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 638 crore, data suggests.
Sensex on Tuesday
BSE Sensex closed 234.33 points, or 0.60 per cent, higher at 39,131.04. While NSE Nifty ended at 11,661.05, up 72.70 points or 0.63 per cent.
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