Closing Bell: Nifty ends above 11,000, Sensex jumps 196 points, bank, oil, metal stocks rise, Federal Bank spikes

Zee Entertainment net profit at Rs 326 crore###Zee Entertainment net profit at Rs 326 crore

Closing Bell: Sensex ends higher by 196 points, Nifty settles above 11,000##Closing Bell: Sensex ends higher by 196 points, Nifty settles above 11,000

The BSE Sensex closed at 36,519.96, rising by over 196 points, or 0.54 percent, while the NSE Nifty 50 ended above 11,014.85, rising by 0.71 percent, or 78 points. HUL is the biggest loser in trade today after brokerages downgrade the rating of the company post its Q1FY19 earnings. Bharti Airtel, Tech Mahindra, Dr Reddy's Labs, Eicher Motors were other losers, while shares of oil marketing companies topped the index gainers list as crude slips to three months low. Nifty Bank gained by 1.23 percent, while Nifty MidCap rose over 400 points, adding 2.33 percent.

Aviation stocks to face Crude headwinds, says Motilal Oswal##Aviation stocks to face Crude headwinds, says Motilal Oswal

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Motilal Oswal says aviation stocks will face Crude Headwinds in near term. Expect Petro product price de-control to continue as long as Crude is below $100.

IndusInd Bank uptrend may have ended##IndusInd Bank uptrend may have ended

Shares of IndusInd Bank Ltd fell as much as 1.6 percent to Rs 1,892, lowest since June 8. The stock breaks below its 50-day exponential moving average after testing a resistance at Rs 1,995 for the last 1-1/2 months. Stock may fall up to a support at Rs 1,820.4, the 14.6 percent Fibonacci retracement level of the uptrend from February 11, 2016 low to June 27, 2018 high. Stock’s wave pattern suggests it has completed a five-wave uptrend and is in wave A of the corrective cycle. Typically the corrective cycle corrects prices by one-third to two-third of the entire uptrend. MACD also turns negative and is below its signal line. IndusInd Bank stock had gained up 16.6 percent this year as of Monday, outperforming the broader NSE index’s 3.86 percent rise. (From Reuters)

Financials lift Nifty, Kotak Mahindra Bank,  HDFC top gainers##Financials lift Nifty, Kotak Mahindra Bank, HDFC top gainers

Market update: Sensex rises over 200 ponts, Nifty reclaims 11,000##Market update: Sensex rises over 200 ponts, Nifty reclaims 11,000

Indian markets rebounded in late afternoon trade buoyed by positive earnings results and rally in bank stocks. The Sensex surged by over 200 points to 36,531.61, rising 0.57 percent, while the Nifty reclaimed 11,000 mark, rising by 72.60 points, or 0.66 percent to 11,009.45 at 2.45 pm. Nifty PSU Bank has risen by 3.23 percent, with gains also seen in Metal, which has added 2.02 percent. Pvt Bank, Pharma, Auto, Bank, Fin Service, Realty are are trading above or near a percent. Oil companies led by HPCL, IOC top the charts on the NSE, followed by Hindalco, Sun Pharma, Tata Steel. Hindutan Unilever has declined the most on the Nifty, also dragging FMCG indice, which is down by nearly 0.80 percent. Bharti Airtel, Tech Mahindra, Dr Reddy's Labs, Eicher Motors are other laggards.

On the BSE, all sectoral indices trade in the positve zone except FMCG which trades lower at 0.65 percent. BSE Metal has gained 2.21 percent, while Basic Materials (1.75 percent), Energy, Finance, Healthcare, Industrials, Auto, Bankex, Consumer Durables, Oil & Gas, Power are all trading higher between 1-2 percent.Sensex gainers include Sun Pharma (3.39 percent), SBI (3.10 percent), Tata Steel (2.70 percent) Tata Motors (2.66 percent), Axis Bank (2.59 percent), Vedanta (2.45 percent), ICICI Bank (2.39 percent), Adani Ports (2.29 percent),  M&M (2.19 percent), while Hindustan Unilever (3.52 percent), Bharti Airtel (1.04 percent), IndusInd Bank (1.02 percent) top the laggards.

Axis Bank surges, trades above 50-day moving average##Axis Bank surges, trades above 50-day moving average

Market update: Nifty eyes 11,000 mark, Sensex up by 90 points##Market update: Nifty eyes 11,000 mark, Sensex up by 90 points

The BSE Sensex added 90.48 points, or 0.25 percent, to 36,414.25, while the NSE Nifty 50 rose 48.10 points, or 0.44 percent, to 10,984.95. Midcaps on both indexes are trading nearly 1.5 percent higher. Shares of HPCL, BPCL lead the gainers, followed by Tata Steel, Sun Pharma, Hindalco, Tata Steel, Vedanta, M&M. Hindustan Unilever, Bharti Airtel, IndusInd Bank, NTPC, ITC, Eicher Motors, Dr Reddy's Labs top among losers. 

Federal Bank Q1 profit jumps 25%, beats estimates##Federal Bank Q1 profit jumps 25%, beats estimates

Federal Bank Ltd posted a 25 percent jump in its first-quarter profit on Tuesday, helped by higher interest income. Net profit was Rs 263 crore in the three months ended June 30, compared with Rs 210 cores a year earlier, beating analyst expectation of a net profit of Rs 202 crore. Gross bad loans as a percentage of total loans was 3 percent at end-June, compared with 3 percent in the previous quarter and 2.42 percent a year earlier. Federal Bank shares surged over 12 percent to Rs 83.45 on the BSE at 1.30 pm.

Ashok Leyland reports Q1 earnings above estimates##Ashok Leyland reports Q1 earnings above estimates

Federal Bank Q1 profit & NII come in slightly higher than estimates##Federal Bank Q1 profit & NII come in slightly higher than estimates

Market update: Sensex, Nifty edge higher##Market update: Sensex, Nifty edge higher

The Sensex trades higher by 44.64 points, or 0.12 percent, to 36,368.41, while the Nifty rises by 0.28 percent, or 30.55 points, to 10,967.40. Midcaps rise over a percent, leaving behind the gloom of last four sessions. 

Rupee extends gains as Dollar index slips##Rupee extends gains as Dollar index slips 

Market update: Sensex trades in the green, Nifty above 10,950##Market update: Sensex trades in the green, Nifty above 10,950

The Sensex trades at 36,366.67, higher by 42.90, or 0.12 percent, while the Nifty is at 10,965.70, gaining 28.85 points, or 0.26 percent. MidCaps on both indexes have risen by nearly a percent. HPCL, Cipla, Sun Pharma, ICICI Bank, Tata Steel, Wipro, Tata Motors are among gainers, while shares of Hindustan Unilever, Bharti Airtel, IndusInd Bank, NTPC, Eicher Motors are among the laggards.

CNBC-TV18 poll: Zee Entertainment profit seen at Rs 350 crore, margin at 31.5%##CNBC-TV18 poll: Zee Entertainment profit seen at Rs 350 crore, margin at 31.5%

Market update: Sensex, Nifty edge higher, OMCs shine##Market update: Sensex, Nifty edge higher, OMCs shine

The Sensex traded higher by nearly 71 points, or 0.19 percent, to 36,394.26, while the Nifty 50 edged up by 26.85 points, or 0.25 percent, to 10,963.70. Sun Pharma, ICICI Bank, Tata Motors, Vedanta Limited, Adani Ports, ONGC, Yes Bank, M&M gained on the BSE, while the laggards include Hindustan Lever (2.65 percent down), Kotak Bank, IndusInd Bank, HDFC, NTPC, L&T, TCS. OMCs gained on the NSE, with HPCL surging by 4.12 percent topping the charts. Nifty PSU Bank has risen by 1.03 percent among sectoral indices while the FMCG declines by 0.37 percent.

PNB chalks out recovery plan##PNB chalks out recovery plan

Opening Bell: Sensex, Nifty open flat##Opening Bell: Sensex, Nifty open flat

Indian markets opened flat on Tuesday with the 30-share S&P BSE Sensex trading at 36392.20, rising 68.46 points, or 0.19 percent higher, while the broader 50-share NSE Nifty 50 trades below 11,000 mark. It edged up 28.60 points, or 0.26 percent, to 10,965.50. Shares of oil marketing companies surged as oil prices slip, while IT shares trade in the red on account of a stronger rupee. Hindustan Unilever shares are trading lower, a day after June quarter results. Federal Bank is at 52 week low ahead of results, while the DCB Bank is down another 2 percent today. Pharma stocks are trading in the positive zone.

Check what Anuj Singhal is saying about markets today##Check what Anuj Singhal is saying about markets today

Govt's axle norms create uncertainty towards Commercial Vehicle cycle outlook##Govt's axle norms create uncertainty towards Commercial Vehicle cycle outlook

Proposed rated load to be increased by 15-25%

According to media reports, the Government is contemplating to increase the rated axle load for Medium and Heavy Commercial vehicles (M&HCVs) by 15-25%. In addition, the proposed fine for overloading of trucks is also being increased substantially (10x of current fine). Media articles also suggest that the norms are likely to be notified this week itself.Also, that this regulation is likely to be for prospective sales along with some older fleet as well (post clearances). In our view, the lack of clarity could impact near term volumes. We wait for the official notification before adjusting earnings estimates.

Prospective v/s retrospective implementation?

The key question is the scope of application. In our view, if these are implemented on current fleet, then the overall carrying capacity increases materially thereby impacting demand for new trucks (especially those for inter-state transport). In addition, freight rates should also ease which would lower cost of transportation in general. On the other hand, if these norms are implemented on a prospective basis; we expect buyers to postpone purchases till the norms are implemented.

End of the 'overloading' practice?

Overloading of existing trucks has been a big issue in India. With the change of the rated load along with higher fines for overloading, the overall occurrence of overloading should come down. That said, our channel checks suggest that for intra-state movements, the overloading is higher than the proposed 15-25% increase. As a result, the impact of these norms is currently difficult to gauge; as it depends on the state-wise implementation.

Adverse product mix change as a result?

As per the current axle norms, the rated-load per axle increases as the number of tyres and axles increase. As a result, the expected change in rated load is likely to be more forheavier trucks (>25T) segment. This segment has seen the strongest volume uptick over the last two years and accounts for 52% of FY18 volumes. If implemented the new norms,should impact the demand of heavy trucks (>25T) more than other segments.

Uncertainty to remain an overhang for stock prices

The new norms would imply a change in the overall cost of manufacturing (brakes, tyres etc) and should increase the cost of trucks accordingly. That said, in the near term, we expect CV related stocks to remain weak till the uncertainty around implementation of these norms remains. We currently, have an U/PF rating on Ashok Leyland and a Buy rating on Tata Motors.

Key stocks to watch today##Key stocks to watch today

Stocks expected to trade in the green

BEL:  MoU with Saab, Sweden for marketing L-Band 3D Air Surveillance Radar.

BEML: MoU with L&T to address indigenization needs of defence market.

Jay Bharat Maruti: Q1 revenue up 34%, EBITDA up 53% & margin at 8.4% Vs 7.4% YoY.

PVR: MFS Intl New Discovery Fund buys 2.95 Lakh shares at Rs 1,191.75/Share.

Oil Marketing Companies: Crude slips overnight, Brent back At $72/bbl, Nymex at $68/bbl.

Fortis: IHH says may look at further fund raising options if needed.

Sunflag Iron: CRISIL upgrades long-term rating to A/Stable from A-/Positive.

Som Distilleries: To issue 12 lakh share warrants to promoter group at issue price of Rs 271.55/Share

JTEKT: Promoter sells 1.1 crore shares, Reliance Small Cap Fund buys 60 lakh, India Acorn 12 lakh

Stocks expected to trade in the red

IT companies: Netflix down 13%  after a weak subscriber growth; FANG stocks fall.

Sintex Plastics: Q1 revenue down 12%, EBITDA down 30% & margin at 12.3% vs 15.4% YoY.

Autos: Govt set to hike load carrying capacity for commercial vehicles today.

Rupee opens at 68.39 against US dollar##Rupee opens at 68.39 against US dollar

The Indian rupee opened stronger at 68.39 against the US dollar on Tuesday. The home currency closed at 68.57 on Monday.

Mixed reaction from brokerages on Hindustan Unilever post earnings##Mixed reaction from brokerages on Hindustan Unilever post earnings

Nomura: New rules with higher load carrying capacity will impact new vehicle demand##Nomura: New rules with higher load carrying capacity will impact new vehicle demand

Here are the top stocks to watch out for today##Here are the top stocks to watch out for today

TCS: Global ratings agency Moody's yesterday affirmed India's largest software exporter firm's rating at the highest among India Inc.  with a stable outlook. The rating agency said the Tata Sons-run company's credit profile is stringer than the 'A3' rating, but the sovereign rating of BBB- constrains the rating.

ICICI Bank: The bank has decided to postpone its AGM by a month amidst independent enquiry conducted by Justice B. N. Srikrishna on alleged cases of impropriety against the bank's CEO Chanda Kochhar. The meeting has been rescheduled to September 12 as against the earlier schedule of August 10.

Hindustan Unilever: Q1 profit rises 19.2 percent at Rs 1,529 crore, while revenue jumps 11.2 percent at Rs 9,487 crore. The stock gained ahead of June quarters earnings yesterday.

June quarter results: Zee Entertainment, Ashok Leyland, ICICI Lombard General Insurance, Federal Bank, CRISIL Ltd, Goa Carbon, Hindustan Media Ventures, Indian Metal & Ferro Alloys, Jindal Stainless, Muthoot Capital Services, Nucleus Software, Rallis India, Sintex Industries, TATA Sponge, 8k miles are expected to declare their results today.

Auto stocks: The Ministry of Road Transport and Highways will hike loading capacity for trucks and heavy commercial vehicles. As per the new norms, the loading capacity for different categories of trucks will go up by 15-25 percent. The Centre hopes this move will give a big boost to the industry and the logistics sector.

Sugar stocks: Shares of Indian sugar producers fell in afternoon trade yesterday on a report that the government may increase fair and remunerative price (FRP) for sugarcane by Rs 20 to Rs 275 per quintal. FRP is the minimum price that sugar mills have to pay to farmers.

Bharat Electronics: The Defence PSU has signed a MoU with Sweden's Saab, for jointly marketing the L-Band 3D Air Surveillance Radar, RAWL-03, co-developed by BEL and Saab, Moneycontrol reports.

Metal stocks: Indian metal companies are expected to report strong earnings in June quarter, as steel firms will benefit from the recent price hikes, says Jefferies, Reuters reports.

Sintex Plastics Technology: Q1 profit falls 47 percent to Rs 37.53 crore versus Rs 70.56 crore (YoY) but turned profitable compared to loss at Rs 12.49 crore in March quarter.

Jay Bharat Maruti: Q1 profit rises 33 percent to Rs 13.44 crore versus Rs 10.12 crore and revenue from operations jumps 16.4 percent to Rs 505.9 crore versus Rs 434.67 crore (YoY).

Indian markets set for flat opening##Indian markets set for flat opening

Indian markets are set for a flat opening on mixed global cues on Tuesday after sharp decline seen yesterday. The Singapore-traded SGX Nifty Futures, which is a key indicator of the NSE Nifty 50's performance in India, traded lower by 0.22 percent at 0735 IST. The BSE Sensex ended the day at 36,323.77, falling by 217.86 points, or 0.60 percent lower on the first trading day of the week. The NSE Nifty 50 settled at 10,936.85, or 82.05 points lower, or by 0.74 percent. The rupee retreated from a near two-week high and ended lower by 4 paise at 68.57 against the US currency on Monday. Read how markets may perform today