CNBC-TV18 Market Close: Indian benchmark equity indices ended with strong gains on Wednesday led by sustained buying in metal and financials space along with index heavyweight Reliance Industries. Trade sentiment improved after a rally in global stock markets and benign retail inflation data boosting chances of a rate cut. Here are the main highlights from the stock markets today:
Sensex heatmap at close: Vedanta, Tata Steel among top gainers, Sun Pharma top loser##Sensex heatmap at close: Vedanta, Tata Steel among top gainers, Sun Pharma top loser
Closing Bell: Sensex ends 353 points up, Nifty above 11029, Bajaj Finserv, Tata Steel top gainers, Sun Pharma dips 5%##Closing Bell: Sensex ends 353 points up, Nifty above 11029, Bajaj Finserv, Tata Steel top gainers, Sun Pharma dips 5%
The Sensex ended 353 points higher at 37,311 while the broader Nifty50 index surged 103 points to end the day at 11,029. The Nifty Midcap gained nearly a percent. UPL, Bajaj Finserv, Zee, Tata Steel, and Vedanta were the top gainers on the Nifty50 index while Sun Pharma, Indiabulls Housing, Wipro, Dr Reddy’s and Coal India led the losses. All sectoral indices, except Nifty Pharma, were positive for the day.
Only 2 stocks in Nifty Realty index gave negative returns in last 5 years##Only 2 stocks in Nifty Realty index gave negative returns in last 5 years
The real estate sector has been in focus in the past 5 years with Narendra Modi government introducing a number of reforms for the sector. During its first term, the Modi government had introduced major reforms such as Real Estate (Regulation and Development) Act, Goods and Services Tax (GST), Insolvency and Bankruptcy Code and Benami Transactions (Prohibition) Act, in order to support the real estate sector struggling with dwindling sales, high inventory and price stagnation. READ MORE
Grasim Industries reports Q1 net profit down 68.6% YoY; margin contracts 560 bps##Grasim Industries reports Q1 net profit down 68.6% YoY; margin contracts 560 bps
Only 5 stocks in Rakesh Jhunjhunwala’s portfolio in green so far this year##Only 5 stocks in Rakesh Jhunjhunwala’s portfolio in green so far this year
Benchmark equity indices BSE Sensex and NSE Nifty50 have witnessed heavy selloffs in July on the back of several announcements made by finance minister Nirmala Sitharaman in the Budget 2019, including a hike in the income tax surcharge on FPIs. In July, the Sensex slipped 4.85 percent and the Nifty50 fell 5.69 percent. Amidst all the market volatility, the big bull of Dalal Street Rakesh Jhunjhunwala also feels the pain but continues to invest in quality companies. READ MORE
Bata India eyes 52-week high; here's why brokerages increased target price of the stock##Bata India eyes 52-week high; here's why brokerages increased target price of the stock
Bata India shares trade almost 2 percent higher on Wednesday, just 1.75 percent away from its 52-week high of Rs 1480. The stock has gained over 4 percent in a week and 8.5 percent in a month. Year-to-date, the stock has surged 28.59 percent, while the one-year return on the stock is over 45 percent. Bata India has returned almost 1700 percent return to investors in the last 10 years. Brokerages are positive on the stock in a near-to-medium term as the discretionary consumer company posted robust results in the first quarter ended in June. Bata India reported a 22.5 percent jump in consolidated net profit at approximately Rs 101 crore. It ad reported a profit of Rs 82.41 crore in the April-June quarter in 2018. The footwear major's net sales came in at approximately Rs 883 crore, up nearly 11 percent while EBITDA at Rs 159 crore was up 21 percent year-on-year. READ MORE
Muted wage growth is killing demand and ... well, everything##Muted wage growth is killing demand and ... well, everything
India, the world's fastest-growing large economy, is facing a demand slowdown and sluggish wage growth is one of the key reasons behind it, an analysis by SBI Research showed.
"A substantial decline in wage growth (both rural and urban wages) in recent times resulting in lower household savings has possibly slowed down the growth in real per capita income that is holding back demand," Soumya Kanti Ghosh, chief economic adviser at SBI Research, said in a report on Wednesday. READ MORE
Here's a quick round-up of what has so far happened in the markets today##Here's a quick round-up of what has so far happened in the markets today
-Benchmark indices trade with strong gains boosted by a set of positive domestic and global cues. Trump delaying a 10% tariff imposition on Chinese imports and benign retail inflation in July pushed risk appetite in equities.
-The Sensex trades 446 points higher near 37400 zone, while the Nifty is above 11050 mark.
-The Nifty MidCap index lags behind up by just 0.84 percent, underperforming frontline peers. Bank Nifty has surged 1.17 percent, while metal, auto, IT, energy sectors have advanced.
-Shares of Sun Pharmaceutical Industries slipped over 6 percent on Wednesday despite strong earnings for the June 2019 quarter.
-Shares of Dr Reddy's Laboratories plunged as much as 8 percent to Rs 2,352 on Wednesday amid concerns the drugmaker’s plan to launch a generic version of a female contraceptive in the US may face a delay.
-Shares of Bosch touched 52-week low of Rs 13,087.95, falling over 3 percent after company reported a weak set of numbers for the first quarter.
RIL's single-day gain in market cap higher than mcap of 19 Nifty stocks##RIL's single-day gain in market cap higher than mcap of 19 Nifty stocks
The single-day gain in RIL's market cap was larger than the market cap of 19 of the 50 companies in the Nifty index as of August 13. RIL's market cap rose to Rs 808,075.31 crore, just below Rs 825,318.25 crore of Tata Consultancy Services. The market cap of the other 29 companies range between Rs 74,000 crore and Rs 607,000 crore. Mahindra and Mahindra, Tech Mahindra, Vedanta, Hero MotoCorp, Eicher Motors, Tata Steel, Tata Motors and Yes Bank were among the 19 firms, which have below Rs 70,000 crore market cap. READ MORE
J Kumar Infra shares jump after MCA removes it from shell companies list##J Kumar Infra shares jump after MCA removes it from shell companies list
Shares of J Kumar Infra over 10 percent to Rs 145.75 per share after the company said it has received a letter from the Ministry of Corporate Affairs informing that the company's name removed from the list of shell companies. The shares traded 6.5 percent up at Rs 140.45 per share.
Glenmark Pharma declines 8 percent on weak Q1 numbers##Glenmark Pharma declines 8 percent on weak Q1 numbers
Glenmark Pharma touched 52-week low of Rs 385.65, sheds 8 percent on August 14 after company registered fall in its June quarter net profit. The company's Q1FY20 (April-June) net profit declined 53 percent at Rs 109.3 crore against Rs 233 crore in the same quarter last fiscal.
NMDC gains 4% on strong Q1 numbers##NMDC gains 4% on strong Q1 numbers
Share price of NMDC gained 4 percent on the back of strong numbers reported by the company in the quarter ended June 2019. The state-run mining company's Q1FY20 (April-June) net profit was up 20.9 percent at Rs 1,179.3 crore against Rs 975.3 crore in a year ago period.
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HDFC Life tanks 7% after Standard Life may have sold Rs 3,145 crore shares##HDFC Life tanks 7% after Standard Life may have sold Rs 3,145 crore shares
Shares of HDFC Life Insurance Company fell 7.5 percent intraday on August 14 after reports suggested that Standard Life may have sold major stake in the company through block deals. About 6.43 crore shares (representing 3.2 percent of total paid-up equity) traded at an average of Rs 486 per share in early trade on August 14. The transaction was worth Rs 3,145 crore. CNBC-TV18 had reported a day earlier that Standard Life would sell 2.5 percent with an upsize option of additional 0.7 percent stake in HDFC Life, the country's largest life insurance company by market capitalisation.
Buying seen in Neuland Lab as stock rises 12%##Buying seen in Neuland Lab as stock rises 12%
India's bond rally fizzles on government spending fears##India's bond rally fizzles on government spending fears
A rally in government bonds, spurred by a large and surprise reduction in policy rates last week, has been cut short by renewed fears of government profligacy. Since February, the Reserve Bank of India has cut the key policy rate by 110 basis points, which has pushed bond yields down significantly.
Ten-year yields hit 6.30 percent on August 7, the day of the RBI's larger-than-expected 35 bps rate cut, and had fallen about 1.2 percentage points since February through the day of last week's cut. READ MORE
Apollo Hospitals stock rallies 9% on robust Q1 results##Apollo Hospitals stock rallies 9% on robust Q1 results
Shares of Apollo Hospitals hit its 52-week high of Rs 1,444, up over 9 percent on Wednesday after it reported robust June quarter results. The company's net profit rose over two-fold to Rs 49.15 crore in Q1 as against Rs 23.34 crore in the corresponding quarter a year ago. At 10:15 AM, the stock price was trading 8.3 percent higher at Rs 1,432 per share on BSE, while the benchmark Sensex rose 0.3 percent, or 113 points, to 37,071.
The rise in profit was mainly on account of robust growth in healthcare services and pharmacy verticals. Consolidated revenue from operations stood at Rs 2,571.89 crore during the quarter under review as against Rs 2,210.47 crore in the same period a year ago. READ MORE
Sun Pharma shares slip over 6% after Q1 earnings##Sun Pharma shares slip over 6% after Q1 earnings
Shares of Sun Pharmaceutical Industries slipped over 6 percent on Wednesday despite strong earnings for the June 2019 quarter. India's largest drugmaker said its consolidated net profit rose 31 percent year-on-year (YoY) to Rs 1,387.5 crore on the back of lower research and development (R&D) expenses. Sun Pharma shares dived as much as 6.2 percent intraday to Rs 412 per share on the NSE. At 10.23 AM, Sun Pharma's stock price was trading lower by 5.22 percent to Rs 416.30 per share. READ MORE
Central govt's total outstanding liabilities as of FY18 understated by at least Rs 7.10 lakh crore or 4.16% of GDP##Central govt's total outstanding liabilities as of FY18 understated by at least Rs 7.10 lakh crore or 4.16% of GDP
Reliance stake sale to Saudi Aramco credit positive, says Moody's##Reliance stake sale to Saudi Aramco credit positive, says Moody's
Moody's Investors Service on Wednesday said Reliance Industries' announcement of the sale of a 20 percent stake in its oil to chemicals (O2C) business to Saudi Arabian Oil Company (Aramco) will reduce the company's net leverage and is credit positive.
"The O2C business, which has an enterprise valuation of $75 billion, includes RIL's refining and petrochemical divisions, and RIL's 51 percent stake in its fuel marketing business," Moody's said in a report. READ MORE
Shares of Reliance Industries quoted at Rs 1292.05 apiece on NSE, higher by 1.36 percent.
Dr Reddy's shares plunge 8% on uncertainty over NuvaRing launch in US##Dr Reddy's shares plunge 8% on uncertainty over NuvaRing launch in US
Shares of Dr Reddy's Laboratories plunged as much as 8 percent to Rs 2,352 on Wednesday amid concerns the drugmaker’s plan to launch a generic version of a female contraceptive in the US may face a delay. The company said it has received a complete response letter from the US Food and Drug Administration (USFDA) for its version of NuvaRing— a small, flexible vaginal ring used to prevent pregnancy. While Dr Reddy's said it is preparing a response to the drug regulator’s letter, it did not give much clarity on how much time it would take. READ MORE
Bosch's Soumitra Bhattacharya says slowdown will continue till 2020##Bosch's Soumitra Bhattacharya says slowdown will continue till 2020
Bosch hits 52-week low after weak Q1 numbers##Bosch hits 52-week low after weak Q1 numbers
Shares of Bosch touched 52-week low of Rs 13,087.95, falling over 3 percent after company reported a weak set of numbers for the first quarter. The company has posted 35 percent fall in its Q1FY20 net profit at Rs 280 crore which include one-time loss at Rs 82.1 crore. Bosch shares quoted at Rs 13100 apiece, down by 2.42 percent on NSE at 9.57 am. Meanwhile, the benchmark Nifty was up by 38 points at 10,964.
Dr Reddy's Labs top Nifty loser, falls 6%; Indiabulls Housing Fin, Tata Steel top gainers##Dr Reddy's Labs top Nifty loser, falls 6%; Indiabulls Housing Fin, Tata Steel top gainers
Opening Bell: Sensex, Nifty start higher tracking strong global cues##Opening Bell: Sensex, Nifty start higher tracking strong global cues
The Sensex surged 186 points, or 0.50 percent, to 37,144.60 in initial trade. The Nifty gained 0.49 percent, or 53 points, to trade 10,979. The Nifty MidCap index was up 0.81 percent, while the banking gauge, Nifty Bank was up 0.32 percent. Among sectors, metal, energy, realty, oil and gas were notable gainers, while consumer durables, power, utilities and FMCG slipped. Indiabulls Housing Finance, Tata Steel, Zee Entertainment, UPL and Bajaj Finserv surged between 2 and 7 percent. Dr Reddy's Labs, Yes Bank, Sun Pharma, Power Grid and Indian Oil Corp were top Nifty losers, falling by up to 6 percent. READ MORE
We are in the process of correcting incorrect business models, says Rakesh Jhunjhunwala##We are in the process of correcting incorrect business models, says Rakesh Jhunjhunwala
The big bull of Indian stock market and ace investor Rakesh Jhunjhunwala remains unhappy with the current state of the market. In an exclusive interview with CNBC-TV18, he said the liquidity crisis in the non-banking financial companies and the current fiscal situation have led to a short-term slowdown. “The economy is going to rebound for sure, the indices are going to rebound, the smallcaps and midcaps will rebound, but the question is when,” Jhunjhunwala noted.
Rupee opens higher at 71 per dollar##Rupee opens higher at 71 per dollar
The Indian rupee gained in the early trade on Wednesday. It opened higher by 40 paise at 71 per dollar against previous close 71.40. The rupee plunged 62 paise on Tuesday to close at a nearly six-month low of 71.40 against the US dollar in line with battered equities as global market turmoil and Argentine currency crash drove investors to safe havens.
Top stock recommendations by Sudarshan Sukhani, Mitessh Thakkar, Prakash Gaba for Wednesday##Top stock recommendations by Sudarshan Sukhani, Mitessh Thakkar, Prakash Gaba for Wednesday
Here are the top buy sell calls by market exprts for Wednesday:
Sudarshan Sukhani - s2analytics.com
- Buy HCLTech with a stop loss of Rs 1,055, target at Rs 1,100.
- Buy L&T Finance Holdings with a stop loss of Rs 99.2, target at Rs 104.
- Sell Jindal Steel & Power with a stop loss of Rs 96, target at Rs 93.
- Sell Cummins India with a stop loss of Rs 600, target at Rs 575.
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