Sensex, Nifty Close at Day’s Low as Telcos Falls Amid Tariff Cuts; HUL Drops After Q1 Earnings

Closing Bell

Indian shares decline for a second straight session, despite opening strong on positive global cues, as investors doubt whether the GST bill, one of the country’s biggest economic reforms in decades, will be passed during the parliament’s monsoon session.

The S&P BSE Sensex declines 0.3 percent to 27,746, while the NSE Nifty settles 0.4 percent lower to 8,508. The last couple of hours of trade were quite volatile with the 50-share index changing direction over 7 times. 

Closing Bell

Indian shares decline for a second straight session, despite opening strong on positive global cues, as investors doubt whether the GST bill, one of the country’s biggest economic reforms in decades, will be passed during the parliament’s monsoon session.

The S&P BSE Sensex declines 0.3 percent to 27,746, while the NSE Nifty settles 0.4 percent lower to 8,508. The last couple of hours of trade were quite volatile with the 50-share index changing direction over 7 times. 

Closing Bell

Indian shares decline for a second straight session, despite opening strong on positive global cues, as investors doubt whether the GST bill, one of the country’s biggest economic reforms in decades, will be passed during the parliament’s monsoon session.

The S&P BSE Sensex declines 0.3 percent to 27,746, while the NSE Nifty settles 0.4 percent lower to 8,508. The last couple of hours of trade were quite volatile with the 50-share index changing direction over 7 times. 

Closing Bell

Indian shares decline for a second straight session, despite opening strong on positive global cues, as investors doubt whether the GST bill, one of the country’s biggest economic reforms in decades, will be passed during the parliament’s monsoon session.

The S&P BSE Sensex declines 0.3 percent to 27,746, while the NSE Nifty settles 0.4 percent lower to 8,508. The last couple of hours of trade were quite volatile with the 50-share index changing direction over 7 times. 

HUL Q1 Net Rises 9.8% to Rs 1,173 Crore; Shares Decline

The FMCG company reported a 9.8 percent jump in net profit at Rs 1,173 crore for quarter-ended June, while revenues went up 5 percent at 7,988 crore compared to same period last year.

The stock declines as much as 3.1 percent to Rs 910. (More on the numbers HERE)

ONGC Slumps Most Since Feb 19 as Market Turns Volatile

The oil explorer declines 5 percent to Rs 219, its single biggest day fall since February 29 of this year.

Indian equities witness a sudden bout of profit booking -- the Sensex and the Nifty decline 0.3 percent -- with telecom companies bearing the brunt of the selling pressure.

Top Losers

• Idea Cellular (-6.2 percent)
  
• Welspun India (-5.6 percent)
  
• Indo Count (-5 percent)
  
• Max India (-5 percent)
  
• Bharti Airtel (-4.3 percent)
  
• Jindal Steel (-4.2 percent)
  
• Transport Corp (-4 percent)
  
• Reliance Comm (-4 percent)
  
• Allahabad Bank (-4 percent)

Bharti Airtel, Idea Cellular Fall After Slashing Data Tariffs

Shares of Bharti Airtel top the list of worst performing Nifty stocks, down 2.5 percent, while Idea Cellular is not too far behind, down 1.5 percent, after the two cut data tariffs to stem defections ahead of Reliance Jio launch.

The BSE Telecom Index, down 2.1 percent, is the worst performing among 19 sectoral gauges.

Bharti Airtel, Idea Cellular Fall After Slashing Data Tariffs

Shares of Bharti Airtel top the list of worst performing Nifty stocks, down 2.5 percent, while Idea Cellular is not too far behind, down 1.5 percent, after the two cut data tariffs to stem defections ahead of Reliance Jio launch.

The BSE Telecom Index, down 2.1 percent, is the worst performing among 19 sectoral gauges.

Sun Pharma, SPARC Shine Bright After Signing License Pact

Shares of Sun Pharma and its group company Sun Pharma Advanced Research Company (SPARC) advance gains after they announce a licensing agreement for its seizure medicine Levetiracetam.

SPARC said it will receive a $10 million payment upfront, and will be eligible for additional payments if performance parameters are met.

While Sun Pharma gains as much as 1.4 percent to Rs 781, making it the top performer on the NSE pharma index, SPARC rises as much as 7.7 percent to Rs 375.

SPARC Due for a Correction?

Sun Pharma, SPARC Shine Bright After Signing License Pact

Shares of Sun Pharma and its group company Sun Pharma Advanced Research Company (SPARC) advance gains after they announce a licensing agreement for its seizure medicine Levetiracetam.

SPARC said it will receive a $10 million payment upfront, and will be eligible for additional payments if performance parameters are met.

While Sun Pharma gains as much as 1.4 percent to Rs 781, making it the top performer on the NSE pharma index, SPARC rises as much as 7.7 percent to Rs 375.

SPARC Due for a Correction?

The momentum indicator Relative Strength Index (RSI) for SPARC has consistently remained above the 70 level, even touching a 12-month high of 81 on June 27, suggesting that investors believe the stock is overbought and is due for a correction.

Axis Bank Leads Banks Higher

The country’s third largest private lender rises as much as 1.7 percent to Rs 575, a level last seen on August 10, 2015, after the RBI on Friday increased the foreign investment ceiling in the bank.

In fact, NSE Bank Nifty is up around 0.9 percent led by ICICI Bank (1.5%), Axis Bank, HDFC Bank (1%) and IndusInd Bank (1%).

Only Yes Bank (-0.1%)and Federal Bank (-1%) are on the decline.

Banks will be in focus as many of leading lenders are expected to report their first quarter earnings this week.

BSE Auto Index Continues Outperformance

The auto index is the best performing sectoral gauge on the BSE, up 1.2 percent at 20,678. In fact, the index has gained six times in the last seven trading sessions.

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RIL Jumps on Q1 Earnings Boost

Shares of Reliance Industries rise as much as 2.6 percent to Rs 1,039 after it beat street estimates with its first quarter results.

Reliance Industries had on Friday reported a bigger-than- expected 18 per cent jump in June quarter net profit on account of highest refining margin in eight years and robust petrochemical earnings.

Consolidated net profit at Rs 7,113 crore or Rs 24.1 per share in April-June period was 18.1 per cent higher than Rs 6,024 crore in the same period last fiscal, RIL had said in a statement. This was the ninth straight quarter for which the company posted highest segment profit for refining and petrochemical business.

Meanwhile, revenue fell 13.4 per cent to Rs 71,451 crore, hurt by a sharp fall in prices of crude oil and petroleum products.

Opening Bell

Indian shares rebound, in line with global peers, amid hopes of the GST bill, one of the country’s biggest economic reforms in decades, may be passed in the parliament session this week.

The S&P BSE 30-share benchmark Sensex gains 0.5 percent to 27,975, while the NSE 50-share Nifty climbs 0.4 percent to 8,578.

Opening Bell

Indian shares rebound, in line with global peers, amid hopes of the GST bill, one of the country’s biggest economic reforms in decades, may be passed in the parliament session this week.

The S&P BSE 30-share benchmark Sensex gains 0.5 percent to 27,975, while the NSE 50-share Nifty climbs 0.4 percent to 8,578.

Analyst Ratings/Research

• Adani Ports: Rs 1000 crore NCDs gets provisional AA+ at India ratings
  
• Ballarpur Industries: India ratings downgrades BILT, NCDs to ‘IND A-’
  
• Mindtree: Cut to neutral versus outperform at Credit Suisse
  
• NTPC, Tata Power, Adani Power, NHPC: India said to consider 2022 coal-power addition target at 57 GW
  
• Tata Consultancy: Cut to neutral vs outperform at Credit Suisse
  
• Infosys: Cut to neutral from outperform at Credit Suisse
  
• Prism Cement: Chairman Rajesh Kapadia resigns citing health

Stocks to Watch

• Amtek Auto, Rollatainers: In talks to sell packaging business (Business Standard)
  
• Ashok Leyland: To set up bus assembly plant in Kenya (PTI)
  
• Axis Bank: FIIs/RFPIs can now invest up to 74 percent, RBI says
  
• BHEL: May consider share buyback (Indian Express)
  
• Bharti, Idea: Cut data rates before Reliance Jio launch (Economic Times)
  
• Bhushan Steel, Uttam Galva Steels: KKR, Aion are weighing investments in firms including Uttam, Bhushan; Aion is also evaluating the potential purchase of a stake in Electrosteel Steels (Bloomberg)
  
• Eros International: Unit ties up with China’s Peacock Mountain, Huaxia Film (NSE)
  
• IDFC Bank: FIIs/RFPIs can now invest up to 46 percent (RBI)
  
• Indian Oil, Bharat Petroleum, Hindustan Petroleum: Cut gasoline, diesel prices effective July 16
  
• ITC: SUUTI stake in ITC may go to insurance firms (Business Standard)
  
• Neyveli Lignite: Considers 300MW solar plant in Odisha (Business Standard)
  

Corporate Announcements

• Cox & Kings: New Horizon Opportunities bought 4.59m shares, Macquarie Bank sells 4.59m
  
• Den Networks: In pact with Jasper Infotech for raising stake in Macro Commerce to 82.9 percent
  
• Jindal Poly: Commissions new BOPP capacity at Nashik plant
  
• Motherson Sumi: Had no talks with any agency on the matter
  
• Suzlon: Targets up to 22 GW of renewable energy capacity by 2022
  
• Tata Motors: To seek holders nod for CEO Butschek’s compensation
  
• VRL Logistics: Max Life Insurance bought 1.05 million shares; Rivendell PE LLC sold 4.7 million

Talking Points

• PM Modi says GST bill to be taken up during Parliament’s monsoon session starting today
  
• India’s trade gap widens despite first export gain in 18 months
  

*June exports +1.3 percent YoY to $22.6 billion, imports -7.3 percent YoY to $30.7 billion

• Raghuram Rajan Challenges Critics to Show How Inflation is “Very Low” (Read more)
  
• India monsoon-sown crop acreage 55.98 million hectares as of July 15
  
• Indian Oil cuts gasoline, diesel prices effective July 16
  
• India oil minister says offshore fracking experiments underway
  
• India starts 4th tranche of gold bonds; issue price Rs 3,119 per gm of gold; annual interest of 2.75 percent payable every 6 months
  
• Forex Reserve -$1.23 billion to $361.9 billion in week to July 8: RBI
  
• India monsoon rainfall 1 percent above normal as of July 15
  
• Minister Gadkari offers land to Tesla to make in India
  
• Global funds buy Rs 1,460 crore of local stocks; domestic funds sell Rs 1,030 crore on July 15: Provisional data

Heads Up: 5 Things to Watch Out For in The Monsoon Session of Parliament

Good Morning!

The Nifty Futures on the Singapore Exchange, an early indicator of Nifty performance in India, is up 0.3 percent to 8,585.

The Turkish lira led a rebound among emerging market currencies, the yen weakened and the U.S. stock index futures advanced following a failed coup attempt in Turkey.

Crude oil declined 0.3 percent to $45.80 a barrel in New York following the events in Turkey, a vital channel for oil passing from Russia and Iraq to the Mediterranean Sea.

On Friday, the S&P 500 Index halted a five-day rally that took it to a record, while the dollar rose and Treasuries had the biggest weekly drop in a year as data boosted optimism in the economy.

Also Read: Turkey Set for Market Turmoil as Coup Turns Investors ‘Ice-Cold’

Asian markets open with gains. Lira rebounds after failed coup attempt in Turkeyhttps://t.co/aHDChHhvbf pic.twitter.com/avWDvyGZp3

— BloombergQuint (@BloombergQuint) July 18, 2016

Asian equities opened half a percent higher, and U.S futures show markets are set to gain https://t.co/wh2Sown2Jk pic.twitter.com/S8bNtJd4zZ

— BloombergQuint (@BloombergQuint) July 18, 2016

Back home, Indian shares declined on the last day of the week after quarterly earnings of the country’s second largest IT firm disappointed the street. Meanwhile, Reliance Industries reported a net profit that beat analyst estimates, on the back of a strong profit margin in the refining business after market hours.