ADVERTISEMENT

Sensex, Nifty Fall Nearly 1% To Extend Losing Streak To Second Day

Sensex, Nifty fell nearly 1%, dragged by broad based losses across sectors led by I.T., FMCG, auto, banking and metal stocks.

<div class="paragraphs"><p>(Trader photo, created by DCStudio, Source: Freepik.com)</p></div>
(Trader photo, created by DCStudio, Source: Freepik.com)

Closing Bell

India's stock benchmarks fell nearly 1%, dragged by broad based losses across sectors led by information technology, FMCG, auto, banking and metal stocks. The decline comes amid fall in Asian and European markets after technology shares dragged the Wall Street down on Monday.

The Sensex fell 0.94% to close near day's low at 53,886.61. This is the first time the 30-stock gauge closed before 54,000 in four sessions since July 6.

The Nifty 50 also declined by similar magnitude to 16,058.30. Today 44 of Nifty 50 stocks fell while six rose. This is the worst day for the index in almost three weeks since June 22.

The broader indices outperformed their larger peers with both the MidCap and SmallCap gauges shedding 0.5%. Fifteen of the 19 sectoral indices compiled by BSE declined with FMCG, Information Technology, Auto, Metal and Teck indices losing over 1%. On the flipside, Telecom, Utilities, Power measures gained 1%.

The market breadth is skewed in the favour of bears. About 1,477 stocks rose, 1,818 fell and 172 remained unchanged.

10-Year Bond Yield Falls

  • Yield on the 10-year bond fell 3bps to close at 7.39%.

Source: Bloomberg

Rupee Closes At New Low

  • Indian currency fell 0.28% (22 paise) to record low 79.66 against the U.S. dollar, during the session.

  • The Rupee trimmed losses to 79.60, a new closing low.

Source: Bloomberg

Euro Extends Decline To Reach Parity With U.S. Dollar

Rail Vikas Nigam Gains Most In Nearly Six Weeks

Shares of Rail Vikas Nigam rose after a consortium of the company and SP Singla Constructions was awarded a Letter of Acceptance (LoA) by National Highways Authority of India (NHAI) on July 11. The LoA pertains to construction of four-lane of National Highway between Kaithlighat and Shakral Village in Himachal Pradesh. The design length of the project is 17.47 km. The total estimated cost of the project is Rs 1,844.77 crore.

Both the analysts tracking the company maintain 'buy'. The return potential of the stock is 46.2%.

Source: Exchange filing, Bloomberg

Rakesh Jhunjhunwala-Backed Star Health Gains Over 20% In Four Days

Shares of billionaire Rakesh Jhunjhunwala-backed Star Health & Allied Insurance Co rose nearly 7.5%, the most in three days.

  • The stock is on a four-day winning streak in which it added over 21%.

  • The rise comes after the company and Common Services Centers, under Ministry of Electronics & Information Technology partnered to provide over 5 lakh CSCs access to Star Health insurance products.

  • These products have been designed specifically to suit the needs of rural customers.

  • The partnership is intended to increase rural health insurance penetration in rural India.

  • The added distribution network is likely to aid the market share growth, Star Health said in an exchange filing post market hours on Monday.

  • Trading volume is thrice the 30-day average.

  • Despite the surge in the last four sessions, the stock is down 25% for the year compared to 6% losses for Sensex.

  • Of the 14 analysts tracking the stock, 10 maintain 'buy', one suggests 'hold' and three recommend 'sell'.

  • The overall consensus price of analysts tracked by Bloomberg implies an upside of 26.4%.

Source: Exchange filing, Bloomberg

European Markets Decline

  • European markets decline, dragged by technology and auto stocks.

  • Euro slides to near-parity with the U.S. dollar, amid energy crisis.

Source: Bloomberg

Sensex, Nifty Fall Nearly 1% To Extend Losing Streak To Second Day

Jefferies Sees Parallels Between Adani's 5G Foray & Mukesh Ambani's Telecom Entry In 2010

Euro Falls Nearly 2% In Two Days 

Ahluwalia Contracts Rises Most In Over 15 Weeks

Shares of construction firm Ahluwalia Contracts rose over 12.5%, the most in over 15 weeks.

  • The rise comes after Ahluwalia Contracts secured the new order for construction work of Amity Campus Bengaluru, aggregating to Rs 150 crore from Ritnand Balved Education Foundation.

  • The total order inflow for the company during FY2022-23 is Rs 863 crore.

  • Trading volume is 18 times the 30-day average. Share price crossed above 50-day and 200-day simple moving average, indicating potential upward price momentum.

  • Of the 11 analysts tracking the company, 10 maintain 'buy' and one suggest 'hold'. The return potential of the stock is at 12.6%.

Source: Exchange filing, Bloomberg

HCL Tech Sheds Over 5% In Two Days

Mid-Day Market Update: Sensex, Nifty Fall; Infosys Leads Decline

India's stock benchmarks declined, dragged by metal, auto, fmcg, banking and information technology stocks, amid decline in global equities after technology firms dragged U.S. markets, rising concerns over inflation and Covid curbs in China.

The Sensex fell nearly 400 points (0.7%) to 53,997.65. The Nifty 50 declined by similar magnitude to 16,098. About 42 of the Nifty 50 stocks fell and eight rose.

The broader indices outperformed their larger peers, with MidCap index losing 0.4% and SmallCap falling 0.25%. Fifteen of the 19 sectoral indices compiled by BSE Ltd. declined with metals, auto, fmcg and information technology stocks.

The market breadth is skewed slightly in the favour of bears. About 1,500 stocks rose, 1,647 fell and 176 remained unchanged.

Adani Data, Jio, Airtel, Vodafone Idea Apply To Bid For 5G Airwaves

  • Adani Data Networks, Reliance Jio, Bharti Airtel and Vodafone Idea have applied to bid for rights in the upcoming auction.

  • The firms have applied to use spectrum in 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz Bands.

Source: Department of Telecommunications

Opinion
Adani Data Joins Reliance Jio, Airtel And Vodafone Idea To Bid For 5G Airwaves

BLS International Climbs As Nomura Singapore Buys 12.5 Lakh Shares At Rs 214

  • Shares of BLS International Services rose over 4.6%, most in a week.

  • The rise comes after Nomura Singapore Ltd bought 12.5 lakh shares at Rs 214 apiece on Monday.

  • Trading volume is more than 2.5 times the 30-day average.

Source: NSE, Bloomberg

Telecom Equipment Makers Rise As India Tightens Supply Rules

Shares of telecom equipment makers like ITI, Tejas Networks and Indus Towers surged after government tightened rules of equipment supply. The S&P BSE Telecom is one of the top sectoral gainers in Tuesday's session.

On Monday, the government amended Unified Access Services License Agreement (UASL) that pertains to the procurement of telecommunication equipment. According to the modification, wireless service providers have been mandated to buy only from suppliers designated as trusted sources by the government. Earlier, wireless service providers had to seek permission from designated authority for upgradation of existing network. That has now been extended to expansion of existing network that utilises equipment from a source not designated as 'trusted'. The rule is effective from June 15, 2021.

The move is aimed at stopping Chinese equipment providers like Huawei and ZTE from supplying gear to Indian wireless service providers and comes amid probes in India on Huawei, ZTE, Xiaomi, Oppo and Vivo for alleged tax evasion, FEMA violations and financial irregularities.

Source: Department of Telecommunications, Bloomberg

Apollo Hospitals Gains Most In Six Weeks

Shares of Apollo Hospitals Enterprises Ltd rose over 4.2%, the most in over six weeks. The stock is the top gainer in the NSE Nifty 50 index.

  • Trading volume is nearly 2.5 times the 30-day average. Of the 26 analysts tracking the company, 24 maintain 'buy', one suggests 'hold' and one recommends 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 19.4%.

  • On July 6, The company announced a collaboration to integrate cardiovascular risk assessment tool with ConnectedLife. The tool used to predict cardiovascular risk will be integrated with ConnectedLife's digital solutions for wellness.

  • The stock has risen in seven of the last eight weeks with Monday's flat close being the only exception.

Source: PTI, Bloomberg

Pratik Pota's Appointment As MD & CEO Brings Gains To Eureka Forbes

Shares of Eureka Forbes gained over 10%, most in three weeks after the company approved the appointment of Pratik Pota as Managing Director and Chief Executive Officer of the company.

Pratik Pota's term will last for five years with effect from August 16, 2022. This is subject to shareholders' approval. Pratik Pota will focus on scaling the business, increasing market share and customer base.

Pratik Pota was the CEO at Jubilant Foodworks where he was credited for leading the business turnaround such as growth in Domino's franchise and expansion of EBITDA margins, besides overseeing digital transformation at the company

Trading volume on Eureka Forbes is more than twice the 30-day average. The relative strength index of the stock is 75, suggesting that the stock may be overbought.

Source: Exchange filing, Bloomberg

HFCL Surges After Bagging Purchase Orders Worth Rs 59.22 Crore

Shares of HFCL rose over 8.5% and are on course to gain over 15% in two days.

  • The company received purchase orders worth Rs 59.22 crore from one of the leading private telecom operators of the country, HFCL said in an exchange filing post market hours on Monday.

  • The order pertains to services in rolling out the Fiber-To-The-Home (FTTH) network and Long Distance Fiber Network in many cities.

  • The order is to be executed by July 2023. Trading volume is 11 times the 30-day average. The company is scheduled its earnings for the quarter-ended June today.

Source: Exchange filing, Bloomberg