Stock Market Highlights: Indian equity indices, Sensex and Nifty ended over a percent lower each Monday amid weak global cues as concerns over rising Delta variant of coronavirus dampened sentiment. Among broader indices, the midcap index closed lower, while the smallcap index ended flat. On the sectoral front, barring Nifty Realty and Nifty Pharma, all other indices ended in the red with private banks, metals, financial services, auto and PSU Banking indices falling the most.
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Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short term trend of Nifty seems to have turned down, after a display of lack of strength at the new highs. The overall chart pattern signals chances of the market sliding down to the crucial support of 15,635 levels in the short term. But, there is a higher possibility of Nifty moving below this support over the period of time. Any upmove from here could find selling pressure around 15,825 levels.
Ajit Mishra, VP - Research, Religare Broking
Markets started the week on a feeble note and lost over a percent, tracking unsupportive global cues. Besides, the subdued result of the banking heavyweight, HDFC Bank, was also weighing on the sentiment. We’re mirroring the global indices as the lingering fear of the third wave has been haunting markets now and then. Besides, participants are closely eyeing the earnings and reacting sharply to any disappointment. With this decline in the index, we may see further consolidation ahead. Meanwhile, we reiterate our view to continue with a stock-specific trading approach while keeping a check on leveraged positions.
Sugandha Sachdeva, VP- Commodity & Currency Research, Religare Broking
The Indian rupee has slipped lower to test three-month lows in line with the sell-off witnessed in the domestic as well as global equities. The sentiments have soured amid the rising spread of the highly contagious Delta variant of the COVID-19 virus, which is likely to hold back the pace of global economic recovery. Besides, the current burst of high inflation seems to be more persistent, rather than 'transitory' as the Fed thinks. This is leading the investors towards the safety of the greenback which is trading near its highest level in months. As for the domestic currency, since it has breached the crucial support of the 74.90 mark, we envisage it to drift lower towards 75.50 in the near- term.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
Domestic markets witnessed a steep fall after last week's sharp rally as market participants resorted to profit-taking although the reaction to the weakness in the global market was mild. Banking and financial stocks faltered sharply and dragged the markets, even as metal, pharma and real estate stocks overcame the hurdles. Although the Nifty survived at 15,700, the closing level was not encouraging. In addition, the market failed to close above the support levels of 20 days SMA and EMA that was around 15,785 and 15,765 levels, respectively. On Tuesday, the market must hold above the levels of 15,600. On the dismissal of the same, the Nifty would fall to 15,500 and 15,450 levels. We need Nifty to cross the levels of 15,840 levels for the bullishness in the market. Our advice is to buy in select stocks with a medium-term view.
Sumeet Bagadia, Executive Director, Choice Broking
Nifty Index incurred losses amid weak global cues, a rise in Covid cases in parts of Asia and OPEC+ deal to inject more oil into the market to power the global economic recovery. On the Technical Front, the Index has formed Doji candlestick pattern as well as confirmed the Hanging Man Candlestick pattern which suggests negative movement for tomorrow. Moreover, the Index has given closing below 21DMA, which further adds weakness in the counter. Hourly Momentum Indicator MACD is also showing negative crossover which suggests weakness for the next day. At present, the Nifty is having support at 15,600 levels while resistance comes at 15,900 levels.
Rupee At Close | The Indian rupee fell 31 paise to end at 74.88 against the US dollar amid a sharp selloff in domestic equities and strengthening of the greenback overseas. The local currency opened lower at 74.73 per dollar as against its previous close of 74.57 and traded in the range of 74.71 - 74.92.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty fell on July 19 after a weak opening following negative cues from Asian markets. An attempt to recover from the morning lows failed to gain momentum and the Nifty closed not very far from the intraday low. Nifty has fallen sharply with a downgap and the next support is 0.8 percent away. Retail investors may review their portfolios and start raising some cash/book profits partly. In case the Nifty settles and starts to rise again they could find another set of stocks to ride on.
Manish Shah, Founder, Niftytrigger.com
Nifty had a very volatile trading day as the index saw a rollercoaster ride. Nifty opened the day lower by 170 odd points and then we see a Doji. The expected breakout seems to have failed as Nifty has turned back below the 15,900-15,950. What this means is that Nifty is back within the trading range of 15,600-15,900. The support for Nifty is at 15,600. For Nifty traders, this is a well-established range. Buy around 15,600 and sell around 15,950. Or wait till there is a clean breakout in either direction.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
15,600 on the Nifty is a crucial level of support. If that holds on a closing basis, the market trend remains bullish. On the upside, a target of 16,100 continues to remain open. Hence, dips and intraday corrections should be used to initiate long positions with a stop loss below the level of 15,600.
Market At Close | NTPC, BPCL, Divi’s, Nestle, Tata Cons gain in a weak trading session
Market At Close | Market breadth mildly favours declines; advance-decline ratio at 1:1
Market At Close | Sensex & Nifty record biggest fall in nearly 3 months; financials top losers
Market At Close | Here are the highlights of today’s trading session
- Sensex & Nifty Record Biggest Fall In Nearly 3 Months; Financials Top Losers
- HDFC Bank Is The Biggest Contributor To Nifty & Nifty Bank On Downside
- Nifty Falls 171 Points To 15,752 & Sensex 583 Points To 52,557
- Nifty Bank Slips 673 Points To 35,079 & Midcap Index 226 Points To 27,625
- 42 Nifty Stocks Close In The Red; HDFC Bank & IndusInd Bank Top Losers
- Lower-than-expected Q1 Leads To A Fall Of Over 3% In HDFC Bank
- Banks See A Rub-off Effect Of HDFC’s Weak Q1; All Nifty bank Constituents Slip
- Bharti, Voda Idea Remain Volatile On AGR Hearing Update
- NTPC, BPCL, Divi’s, Nestle, Tata Cons gain In A Weak Trading Session
- L&T Financial Holdings Slip Over 4% After A Weak Set Of Earnings For Q1
- Market Breadth Mildly Favours Declines; Advance-Decline Ratio At 1:1
Closing Bell | Indian benchmark equity indices ended over a percent lower each Monday amid weak global cues as concerns over rising Delta variant of coronavirus dampened sentiment. The Sensex plunged 586.66 points, or 1.10 percent, to 52,553.40, while the Nifty ended 171.00 points, or 1.07 percent, lower at 15,752.40. Among broader indices, the midcap index closed lower, while the smallcap index ended flat.
On the sectoral front, barring Nifty Realty and Nifty Pharma, all other indices ended in the red with private banks, metals, financial services, auto and PSU Banking indices falling the most. On the Nifty50, HDFC Bank, IndusInd Bank, HDFC Life, Axis Bank and HDFC led the losses, while NTPC, BPCL, Divi’s Laboratories, Nestle India and Tata Consumer Products were the top index gainers.
India's strong fundamentals, market size will continue to attract foreign investments: FM Nirmala Sitharaman
India's strong fundamentals and market size will continue to attract market-seeking greenfield investments, Finance Minister Nirmala Sitharaman said in a written reply to Lok Sabha on Monday. Quoting the World Investment Report 2021, the Finance Minister said FDI inflows into India rose by 25.4 percent to reach USD 64 billion in 2020, from USD 51 billion in 2019, becoming the fifth-largest recipient in the world in 2020, up from the eighth position it held in the previous year. Read here.
Expect Indian IT to outperform global stocks; consumption slowdown may affect banks: Pacific Paradigm
Punita Kumar Sinha, managing partner of Pacific Paradigm Advisors and chairperson of InCred AMC, on Monday said that the banking sector could face some pressure owing to a slowdown in consumption. Sinha further said that Indian IT will outperform the global IT stocks. Speaking in an interview with CNBC-TV18, she said, “There has been a bit of unemployment because of COVID and the consumer sector is under pressure and some corporate sector loans could also be at risk, but consumer side is where I see a lot of risks as people continue to see unemployment. So, banks might face some pressures. However, it’s closely linked to what the economy does, but I am not too concerned because as I said, the economy is on the mend.” Read here.
PSP Projects Q1FY21 | The company reported a net profit of Rs 24.9 crore as against a loss of Rs 3.4 crore, YoY. Revenue rose to Rs 317.4 crore from Rs 106.9 crore, YoY. EBITDA increased was at Rs 39.4 crore, while EBITDA margin was at 12.4 percent.
Tatva Chintan Pharma Chem IPO day 2: Issue subscribed 10.95 times so far
The initial public offering (IPO) of specialty chemical company Tatva Chintan Pharma Chem has been subscribed 10.95 times so far on July 19, the second day of bidding. It received bids for 3.57 crore equity shares against the IPO size of 32.61 lakh shares, according to data available on the exchanges. The portion set aside for retail investors is subscribed 18.85 times, while that for non-institutional investors is subscribed 6.42 times. The qualified institutional buyers have placed bids for 51 percent of the total shares reserved for them.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research
The market witnessed a correction after it failed to hold an important support level around the Nifty50 Index level of 15,800. 15,650 will be an important support level from a short-term perspective. Sustaining above 15,620-15,650 levels, the market expects to bounce back, and trade in the range of 15,650-15,900. The technical indicator suggests, a volatile movement in the market in the range of 15,650-15,900.
Broking stocks soar; Angel founder on factors driving retail frenzy
The stocks of brokerages and market intermediaries have been on the run for the past few months. They are up between 70 to 310 percent. Angel Broking leads the pack with an over 300 percent gain in 3 months, BSE has gained 110 percent and ICICI Securities 90 percent. The laggard has been 5paisa with a gain of 49 percent. The number of demat accounts is up 50 percent at 62 million versus 41 million at end-FY20. They rose steadily from 21 million at the end of FY13 to 36 million in FY19. The pace picked up after that and it scaled to 41 million in 2020, 55 million in fiscal 2021 and finally to 62 million now. In an interview with CNBC-TV18, Dinesh Thakkar, chairman & managing director (CMD) of Angel Broking and Mithun Aswath, managing partner of Kivah Advisors spoke at length about the trend in demat accounts. Read here.
Vodafone Idea tanks over 8%, Bharti Airtel down 2% as AGR case hearing begins
Shares of telecom companies Vodafone Idea and Bharti Airtel declined as the Supreme Court began the hearing in the AGR case. Vodafone Idea plunged over 8 percent, while Bharti Airtel slipped 2 percent after the SC observed that not just once, but twice and thrice the AGR amount can’t be recomputed. Mukul Rohatgi, counsel for Vodafone Idea told to SC that the company’s dues were Rs 58,000 crore. “Our debts are Rs 1.8 lakh crore. Ours is not a fly-by-night operation,” said Rohatgi said. Catch live updates from the AGR case here.
Sona Comstar partners with Israel’s IRP Nexus Group to develop magnet-less electric motor
Sona Comstar and Israel's IRP Nexus Group have come together for a project that will manufacture new e-motor technology, and market it globally. Sunjay Kapur, Chairman of Sona Comstar, discussed this further. “We are developing a motor, which will eliminate the rare earth materials such as magnets. A lot of the magnets are bought from China, so we want to reduce dependence on magnets. This will help in terms of the cost of the motor, it will also help in terms of making the motor lighter,” he said. Read here.
Suryoday Small Finance Bank Q1 advances fall 2% QoQ; deposits rise
Suryoday Small Finance Bank said its gross advances during the first quarter of fiscal 2022 fell two percent, while its deposits rose sequentially. In its quarterly business update, the bank reported gross advances at Rs 4,082 crore in Q1FY22, up 16 percent YoY and down two percent, QoQ. Its disbursements during the quarter were at Rs 361 crore, down 66 percent from Rs 1,058 crore in the March 2021 quarter. Total deposits at Rs 3,317 crore in the June 2021 quarter were up two percent from Rs 3,256 crore in the March 2021 quarter. CASA ratio improved by 80 bps sequentially to 16.2 percent in Q1FY22 from 15.4 percent in Q4FY21. Read here.