OTHERS :Mumbai: Indian benchmark indices BSE Sensex and NSE’s Nifty 50 declined on Wednesday after Parliament speaker admits noconfidence motion against the Modi government. The Indian rupee on Wednesday weakened against the US dollar, tracking losses in Asian currencies after US Federal Reserve chairman Jerome Powell’s positive assessment of the US economy boosted the dollar. Shares in Europe advanced after a mixed session in Asia. Foreign investors sold shares worth a net of Rs 673.99 crore on Tuesday, while local investors bought shares worth a net Rs 840.06 crore, provisional data showed. Here are the highlights from the markets:
Closing bell: Sensex, Nifty close lower
BSE Sensex closed lower by 146.52 points, or 0.40%, to 36,373.44, while the Nifty 50 fell 27.60 points, or 0.25%, to close at 10,980.45. BSE MidCap and SmallCap fell 1.27% and 0.95%, respectively.All the sectoral indices on BSE, except oil and gas, declined with metal falling most at 3.12% followed by realty, basic materials, telecom, industrials and auto. Oil and gas gained 1.07%. ONGC, BPCL, Asian Paints, Yes Bank and HDFC were among the top gainers, whereas Tata Steel, Vedanta, Axis Bank, Tata Motors and Hindustan Unilever were among the top losers.
JM Financial shares dive 5% after Q1 results
JM Financial Ltd shares dived 5.18% to Rs 116.20. The company reported a net profit of Rs199 crore in the June 2018 quarter versus a profit of Rs 183 crore year ago. June quarter revenue from operations stood at Rs828 crore as against Rs 673 crore in the same period last year.
Rupee weakens against US dollar
The Indian rupee weakened against US dollar, tracking losses in Asian currencies market after Federal Reserve chairman Jerome Powell’s positive assessment of the US economy boosted the dollar. At 2.05pm, the rupee was trading at 68.58 a dollar, down 0.17% from its previous close of 68.46. The currency opened at 68.39 a dollar and touched a high and a low of 68.38 and 68.59, respectively. So far this year, the rupee has weakened 6.55%, while foreign investors have sold $878 million and $6.34 billion in equity and debt markets, respectively.
Sensex, Nifty extend losses
BSE Sensex traded lower by 183.22 points, or 0.50%, to 36,336.74, while the Nifty 50 fell 28.15 points, or 0.26%, to 10,979.90. BSE MidCap and SmallCap were down 1.34% and 0.98%, respectively.All the sectoral indices on BSE, except oil and gas, traded lower with metal losing most at 3% followed by telecom, power, basic materials and realty. ONGC, HDFC, Asian Paints and BPCL were among the top gainers, whereas Tata Steel, Hindustan Unilever, Tata Motors and Vedanta were among the major losers.
Speaker admits no-trust motion against Modi government
Speaker Sumitra Mahajan admits the no-confidence motion and says she would announce the date for a debate on it in “2-3 days”.
Speaker admits no-trust motion against Modi government https://t.co/rveKG8IELk
— Livemint (@livemint) July 18, 2018
European stock markets climb at open
Europe’s main stock markets rose at the open following gains in Asia and on Wall Street. London’s benchmark FTSE 100 index climbed 0.4% at 7,656.73 points compared with Tuesday’s closing level. In the eurozone, Frankfurt’s DAX 30 index gained 0.5% to 12,728.41 points and the Paris CAC 40 won 0.4% to 5,441.54. AFP
Bandhan Bank shares surge 6% as Q1 net profit rises
Bandhan Bank Ltd reported a 47.5% jump in its June quarter net profit due to higher other income and net interest income. Net profit for the quarter stood at Rs481.71 crore against Rs326.56 crore a year ago. According to 13 Bloomberg analysts’ estimates, the bank was expected to post a profit of Rs211.70 crore. Net interest income (NII), or the core income a bank earns by giving loans, was up 39.50% to Rs1037.17 crore versus Rs743.49 crore last year. Other income was at Rs210.69 crore, up 72.75% from Rs121.96 crore a year ago. Bandhan Bank shares jumped as much as 6.04% to Rs 596.
ITC’s FMCG business low on profitability, says CLSA
ITC Ltd’s success in FMCG business is limited, and meaningful profit from the business is still some time away, noted CLSA. The company’s FMCG business makes a meagre 1.5% EBIT margin due to aggressive launches, steep learning curve in personal care and tough retail environment for apparels, added the brokerage.Since FY 2002, cumulative loss at ITC’s FMCG business stood at Rs 2,300 crore in addition to capex of Rs 5,600 crore, noted CLSA, adding that the business still remains in gestation.The brokerage added that a calibrated portfolio expansion will not only drive profitability, but also add 13% to its target price in a ‘blue sky scenario’ based on current peer valuations.CLSA has ‘buy’ on ITC with a target price of Rs 340 per share, citing low on profitability on its FMCG business. ITC’s fair value would go up to Rs 380 per share, if it trades in line with peers.Thirty out of 36 analysts covering ITC have ‘buy’ or higher ratings, 5 have ‘hold’ and 1 has ‘sell’; median target price is Rs 325.5. The stock has risen 2.5% this year up to last close versus a 9% gain in the Nifty FMCG index. Reuters
Sensex, Nifty reverse gains
BSE Sensex traded lower by 113.24 points, or 0.31%, to 36,406.72, while the Nifty 50 edged down 13.90 points, or 0.13%, to 10,994.15.
ONGC shares jump nearly 5%
Shares of state-owned Oil and Natural Gas Corp. Ltd (ONGC) gained as much as 4.8% to Rs163.7—highest since 21 June. Reuters reported that ONGC has authorised the government to sell its 49% stake in helicopter service provider Pawan Hans. The government in October 2017 invited bids from private companies, including foreign ones, to buy out its entire 51% stake along with management control in helicopter service operator Pawan Hans Ltd, reported PTI.
Bajaj Finance shares hit record high
Shares of Bajaj Finance Ltd, India’s largest consumer finance company by market-cap, rose as much as 2.08% to a record high of Rs 2,521.70. Bajaj Finance stock was up 40.56% this year as of Tuesday’s close and is the second best performer among NSE Index companies. TCS stock, up 48.24% in the same period, is the top gainer.
Sun Pharma shares rise nearly 2% over USFDA drug approval
Sun Pharmaceutical Industries Ltd said that that it has received approval from USFDA for Infugem 10 mg/mL, for intravenous use in a ready-to-administer (RTA) bag. This marks the first USFDA approval for a product from Sun Pharma’s Halol facility post receipt of an EIR in June, the company said in a BSE filing. The addressable market size is approximately $35 million for the 12 months ending March 2018, as per IQVIA. Sun Pharma shares rose as much as 1.85% to Rs 559.
ICICI Lombard tightens grip on profitability in a lean growth quarter
Most analysts have a buy rating on ICICI Lombard’s stock given the improving profitability metrics. ICICI Lombard shares traded 0.69% down at Rs 731.
If the first quarter metrics of ICICI Lombard General Insurance Co. Ltd are anything to go by, the general insurer could see another year of strengthening profitability, writes @aparnaviyer02 https://t.co/8jz9qCmLaB
— Mint Mark to Market (@livemint_m2m) July 18, 2018
Bitcoin prices surpasses $7,500; Ripple, Ether, Litecoin also rise
Cryptocurrencies extended their rebound on Wednesday as Bitcoin traded above $7,500 for the first time in a month, shrugging off security and regulatory concerns that have plagued the digital currency for much of this year. Bitcoin climbed as much as 3.1 percent to $7,543, according to Bloomberg composite pricing. Rival cryptocurrencies including Ripple, Ether and Litecoin also advanced. Bitcoin remains more than 60% below its all-time high in December. Read more
Zydus Cadila gets 4 drug approvals from USFDA
Cadila Healthcare Ltd said Zydus Cadila has received four final approvals from USFDA to market Olanzapine tablets USP, Glipizide extended-release tablets, Voriconazole for injection and Fluocinonide topical solution USP. Cadila shares rose as much as 1.83% to Rs 366.10.
TCNS Clothing IPO: Valuations capture the upsides adequately
TCNS Clothing Co. Ltd, the women’s branded ethnic-wear maker, intends to raise about Rs 1,125 crore through its initial public offering (IPO). At a time when other retail peers hit rough patches, TCNS was able to carve a niche for itself and emerge profitable thanks to an early-mover advantage in the category. Read More
RIL shares rise over 1% on capital raise news
Shares of Reliance Industries rose as much as 1.17% to Rs 1104.50. Bloomberg reported that Reliance Industries plans to raise about Rs40,000 crore in fresh debt this financial year as it expands its consumer businesses.
PNC Infratech shares jump 5% on new order
PNC Infratech Ltd shares rose 5% to Rs 157 after the company said it has received an order worth Rs 1,157 crore for highway project in Karnataka.
PSU bank stocks trade higher
Shares of state-run banks were trading higher after Mint reported that the government will infuse more than ₹11,300 crore into five state-run banks in the next few days as it looks to provide capital support to ailing banks. Read moreThe Nifty PSU Bank Index was up 0.78%. Indian Overseas Bank gained 13%, Corporate Bank 9%, Central bank of India 3%, Andhra Bank rose 4%, Allahabad Bank 3.2%, Punjab National Bank 2.6%, Syndicate Bank 1.3%, State Bank of India 1.2%,
Sensex jumps 200 points
BSE Sensex traded higher by 199.44 points, or 0.55%, to 36,719.40, while the Nifty 50 rose 62.05 points, or 0.56%, to 11,070.10.
Bond yields hit 10-week low as RBI announces OMO purchases
Yields on the 10-year government bond Wednesday hit ten week low after the Reserve Bank of India announced open market operation purchase. At 9.15am, the 10-year bond yield stood at 7.723% -- a level last seen on 10 May, from its Tuesday’s close of 7.865%. Bond yields and prices move in opposite directions.Rupee was trading little changed against US dollar. The currency was trading at 68.43 a dollar, up 0.03% from its previous close of 68.46.
Opening bell: Cues to look out for before trading today
■ In US markets, the Nasdaq Composite hit a record high on Tuesday as strong gains in Amazon and a rebound in Netflix shares led to a big comeback in tech stocks. Asian shares rose on Wednesday, tracking gains seen on Wall Street amid earnings season news and following upbeat remarks from Federal Reserve chairman Jerome Powell during his congressional testimony.■ The finance ministry is likely to infuse more than Rs 13,000 crore within a few days in some state-owned banks including Punjab National Bank, Corporation Bank and Central Bank of India, to help them meet their regulatory capital requirements, people aware of the matter said.■ TCNS Clothing Co. Ltd, the women’s branded ethnic-wear maker, intends to raise about Rs 1,125 crore through its initial public offering (IPO).■ Federal Bank Ltd reported a 25% increase in its June quarter net profit due to lower provisioning and higher net interest income. Net profit for the quarter stood at Rs 262.71 crore against Rs 210.15 crore a year ago.■ Hinduja flagship firm Ashok Leyland reported over three-fold jump in standalone net profit at Rs370.1 crore in the first quarter ended on 30 June, riding on robust sales.■ HDFC Bank Ltd has raised Rs8,500 crore by issuing over 3.9 crore shares on preferential basis to its parent HDFC Ltd.■ Sachin Tendulkar-backed Indian virtual sports and entertainment company, Smaaash Entertainment Pvt. Ltd, is planning to launch its initial public offering (IPO) to raise ₹500 crore from the market, said two people aware of the development.■ Earnings corner: Bandhan Bank, JK Tyre, Mindtree, NIIT Tech and Ultratech Cement Ltd are among the companies that will be announcing their June quarter earnings today.(Harsha Jethmalani/Mint)
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