Stock Market Highlights: The Indian equity indices, Sensex and Nifty ended lower Monday dragged by selling in financials and auto stocks. Broader markets, smallcap and midcap indices closed mixed. Among sectors, Nifty PSU Bank, Nifty Auto, Nifty Realty and Nifty Financial Services ended in the red, while gains were seen in metals, pharma, IT, and media indices.
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Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities
Low volatility phase continues as RBI remains a major USD buyer and FPI flows capping the uptrend. Spot closed flat 74.42. July futures are trading flat near 74.44 levels. Over this week, the focus will be on the US Fed meeting on Wednesday. Ahead of that USDINR spot may remain within a range of 74.20 and 74.70 on spot.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
On the first day of the week, Nifty remained in the tightening trade range and the level 15,900 was not broken and 15,750 was not threatened. Due to substantial pressure of the rollovers of the longest expiry, the outcome of the FED's meeting which is due on Tuesday would also have a lot of significance. Today, the market has formed an "inside body" formation, which is a sign of indecisiveness and on Tuesday, to show any trending move the market has to break either upward or lower boundary which is at 15,900 and 15,750 levels, respectively. A close below the levels of 15,750 on an hourly basis, the Nifty would fall to 15,650 levels. On the other hand, a close above the 15,900 levels would enable the Nifty to move up to 16,000.
Rupee At Close | The Indian rupee ended flat at 74.40 per dollar, amid volatility in the domestic equity market. The local unit opened marginally lower at 74.46 per dollar against Friday’s close of 74.40 and traded in the range of 74.40-74.52.
Deepak Jasani, Head of Retail Research, HDFC Securities
Indian benchmark equity indices failed to hold on to the intra day gains on July 26 and broke a two-day winning streak. Q1FY22 results from frontline stocks have failed to excite investors at a time when the other Asian markets are reeling under regulatory pressures and rising Covid cases. Nifty continues to face resistance at 15,900. Although Nifty is showing strength, the weakness in other markets, if it continues, can impact the Nifty and we could see some more downside in coming sessions. 15,899-15,768 could be the trading band for the Nifty in the near term.
Ajit Mishra, VP - Research, Religare Broking
Markets traded lacklustre and ended marginally in the red, tracking mixed cues. The beginning was downbeat following negative global cues however the index managed to recoup its losses and traded in a narrow range thereafter. Going forward, the earnings announcement from select Nifty majors combined with global cues will dictate the trend. Meanwhile, we reiterate our view to limit leveraged positions and wait for further clarity.
Manish Shah, Founder, Niftytriggers.com
Gap resistance in Nifty at 15,880-15,840 is acting as a barrier to further upsides. What we need is a push above 15,950 with a long-ranged candle for Nifty to move higher. With three days to go for expiry, there would be a lot of bets that Nifty may not trade above 16,000-16,100 before the end of July expiry. Moreover, the overnight weakness in the Asian market did not result in a very weak close. Any short term bounce in Asian markets tomorrow could mean that Nifty, being an outperformer among the Asia pack, could see a spurt of buying interest. Which way the markets are likely to go remains an enigma. When in doubt apply the maxim “when in doubt stay out” On the lower side the support is at 15,650. If Nifty drops down to 15,600-15,650 it could be a buying opportunity.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The Nifty has started the week on a tepid note; it continues to remain range-bound with lacklustre volumes. 15,600 is now short term support while 15,400 is good medium-term support. 15,900 is a stiff resistance and we have witnessed severe selling pressure around that level. Until we are not successful in getting past either of the two levels, the markets will continue to vacillate between 15,400 and 15,900.
Market At Close | Market breadth neutral; advance-decline ratio at 1:1.
Market At Close | Market ends with a minor cut after a range-bound session.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research
The market witnessed some lacklustre movement and an attempt to hold the support level around the Nifty 50 Index level of 15,800. The expected levels of the market are likely to be in the range of 15,800 and 15,950, and it is going to be crucial for the short-term market scenario to sustain above the 15,800 Nifty50 Index level. The technical indicator suggests, a volatile movement in the market in a small range.
Market At Close | Here are the highlights of today's market session
- Market Ends With A Minor Cut After A Rangebound Session
- Reliance & HDFC Bank Drag While Infosys & Kotak Bank Support
- Nifty Falls 32 Points To 15,824 & Sensex 120 Points To 52,856
- Nifty Bank Slips 85 Points To 34,950 & Midcap Index 11 Points To 27,574
- SBI Life Top Nifty Gainer After Reporting Earnings In-line With Estimates
- Bajaj Finserv Continues The Gaining Momentum, Rises More Than 2%
- ICICI Bank & ITC End Little Changed Following Better-than-expected Q1
- Navin Fluorine, M&M Fin & Alembic Pharma Slip After A Weak Set Of Earnings
- Apollo Hosp, Max Fin, Sun TV, Dr Lal Amongst Top Midcap Gainers
- Market Breadth Neutral; Advance-Decline Ratio At 1:1
Closing Bell | The Indian equity benchmark indices ended lower Monday dragged by selling in financials and auto stocks. The Sensex fell 123.53 points, or 0.23 percent, to end at 52,852.27, while the Nifty closed 31.60 points, or 0.20 percent, lower at 15,824.45. Broader markets closed mixed as the smallcap index gained 0.4 percent, while the midcap indices closed flat.
Among sectors, Nifty PSU Bank, Nifty Auto, Nifty Realty and Nifty Financial Services ended in the red, while gains were seen in metals, pharma, IT, and media indices. JSW Steel, Wipro, Reliance Industries, SBI and BPCL were the top Nifty50 losers, while SBI Life Insurance, Bajaj Finserv, Hindalco Industries, Divi’s Laboratories and UltraTech Cement were the top gainers.
Market Watch: Sanjiv Bhasin, Director, IIFL Securities
We have a buy on ICICI Bank. On any decline or at present prices, ICICI Bank is one of the best and it will lead the Bank Nifty. So I am relatively bullish on banks, I am more bullish on midcap banks. ICICI Bank, Axis Bank and Kotak Mahindra Bank are the three stocks on the largecaps. IDFC First Bank, Bank of Baroda, Canara Bank will be the ones, which we think from the midcaps will largely outperform.
Emkay on Reliance Industries
RIL remains constructive on the O2C margin outlook with improving mobility, healthy domestic petchem demand and container shortage. Upstream’s earnings contribution should improve with higher output (MJ first gas by Q3FY23, overall 30mmscmd in CY23) and prices (to be up 50-60% in H2FY22). Management is seeing signs of retail easing with operating store hours at 38% in Jun’21 (25% in May) and further opening-up in Jul’21. 700 new stores are in the pipeline for opening. JioFiber has 3mn customers/access outside 12mn premises. Jio has received 100MHz in the 3GPP band n78 from the DoT for 5G trials. RIL and Microsoft have operationalized an initial 10MW capacity of Jio-Azure cloud data centers (Jamnagar-Nagpur). Jio’s spectrum investments have created the capacity to on-board the next 200mn customers. We value RIL on SOTP basis with a revised target price of Rs 2,340 (Jun’22E). Maintain Hold/Equal weight. Key risks are adverse commodity margins/currency and B2C competitive pressures.
Nuvoco Vistas gets SEBI nod for Rs 5,000-crore IPO
A large initial public offering (IPO) from the cement sector is soon to be launched from the house of Nirma Group after the Securities and Exchange Board of India (SEBI) approves Nuvoco Vistas' Rs 5000 crore issue. CNBC-TV18 learnt that the company is eyeing a valuation of Rs 20,000 crore. Nirma Group’s cement arm Nuvoco Vistas is about to launch its IPO on August 9, 2021, and eyes Rs 20,000 crore valuation post-dilution, sources told Moneycontrol. Nuvoco Vistas’ Rs 5000 crore public issuance recently got market regulator, SEBI’s approval. Read here.
Vodafone Idea introduces new postpaid plans for enterprise users starting from Rs 299
Vi Business, the enterprise arm of Vodafone Idea Ltd (VIL), on Monday launched a range of new ‘Business Plus’ postpaid plans for its corporate customers. The more comes days after its rival Bharti Airtel announced its own change-up in their corporate postpaid plans in order to increase the average revenue per user (ARPU). Vodafone Idea’s Business Plus postpaid plans for corporate users start from Rs 299 per month and go upwards to Rs 499 per month. Within these plans, users will get unlimited calling, upwards of 30 GB of data, 3000 SMSes a month. Other benefits include a subscription to Vi Movies & TV and Disney+ Hotstar VIP for one year, mobile security, location tracking solutions, Vi Caller Tunes subscription and Vi Business-Mobility platform and Vi App. Read here.
Yes Bank expects 15% loan growth in FY22 provided COVID doesn’t play spoilsport
Yes Bank reported its Q1FY22 results. The bank has reported a profit despite expectations of a loss, posting an over four-fold jump in its net profit at Rs 207 crore for the quarter ended June 2021. It had posted a net profit of Rs 45 crore in the same quarter of the previous fiscal year. Total income during Q1 FY22, however, was down at Rs 5,581.84 crore as against Rs 6,106.74 crore in Q1 FY21. Net interest margin (NIM) for the quarter has been under pressure and stress also remained high. Prashant Kumar, MD & CEO, Yes Bank, discussed the performance. Read here.
Avinash Shekhar, Co-CEO, ZebPay
We are always bullish on the fundamentals of Bitcoin. Price fluctuations like this are just a sign of an early market and it’ll be stabilized once the market matures. When you look at bitcoin, you are looking at an asset with innovative technologies like triple entry bookkeeping, decentralization, and a public ledger. The best part is that more upgrades are coming to this network to make it more efficient. When we say we are bullish on bitcoin, we are looking at the future potential of this asset and the strong fundamentals it holds. Also, if you look at the larger time frame, these small price fluctuations would be invisible and that’s why we recommend investing in bitcoin for the long run.
Buzzing | Yes Bank shares jump over 7% after strong Q1 results
The share price of Yes Bank rallied over 7 percent on Monday after the lender reported more than a four-fold jump in net profit for the first quarter of fiscal 2022. Yes Bank posted a net profit of Rs 207 crore in the quarter ended June 2021 as compared to Rs 45.44 crore in the year-ago period. The bank said this was its highest net profit since December 2018. Read here.
JSW Steel expects Dolvi expansion-led volume growth; sees consolidated EBITDA improving
JSW Steel posted its Q1FY22 results. EBITDA looked strong at around Rs 10,275 crore while margin also come in significantly above estimates but it is the debt that has spiked for the company this quarter. The company posted a consolidated net profit of Rs 5,900 crore for the first quarter ended June 30, the highest ever quarterly net profit posted by the company. In the corresponding quarter last year, the company had posted a loss of Rs 582 crore. Seshagiri Rao, Joint MD and Group CFO, JSW Steel, discussed the performance. “The volume growth will come from the expansion in Dolvi. The overall value-added product mix as a percentage of sales has gone up to 61 percent, which will also contribute to the bottomline and also the EBITDA per tonne. Plus, the subsidiaries overseas and in India plus the acquisitions which we have made are all doing very well. That is also one of the reasons why the EBITDA per tonne on a consolidated basis has improved substantially,” he said in an interview with CNBC-TV18.