Share market highlights: Sensex ends 160 points up, Nifty near 11,600; Infosys, Sun Pharma top gainers

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Updated:Jul 15, 2019 3:53:18 pm

Share market highlights: After opening higher, Sensex and Nifty pared gains in the late morning trade on Monday, tracking cues. The Sensex is up about 10 points to 38,745.44 while the Nifty is trading below the 11,550-mark.

Sensex, Sensex today, Sensex share, Sensex news, Tata Steel, NTPC , Bajaj Auto, HDFC Bank, Axis Bank, Hero MotoCorp, PowerGrid, Tata Motors, SBI, Yes Bank, Bharti Airtel, Maruti, HCL Tech, HUL, RILInfosys share price surged more than 5.5% in the morning trade to hit the day’s high at Rs 767.

Share market highlights: The headline indices Sensex and Nifty closed higher on Monday, on the back of a rally in IT and financial heavyweights. The Sensex closed 160 points higher at 38,896.71 while the Nifty is closed near the 11,600-mark. Infosys share price closed 7.2% higher at Rs 779.45 on BSE after the firm reported strong Q1 results in the April-June quarter. Sun Pharma shares ended 3.6% higher at Rs 422.40.  IndusInd Bank, L&T were among the top losers shedding more than 1.5% each. Asian shares started the week on a softer note on Monday after posting their first weekly decline since early June, while the dollar was on the defensive ahead of key economic data from China. MSCI’s broadest index of Asia-Pacific shares outside Japan was a shade lower at 524.9 points. It fell a little more than 1% last week, snapping five straight weeks of gains, Reuters reported.

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Highlights

    15:52 (IST)15 Jul 2019
    BSE live: Sensex ends 160 points up, Nifty near 11,600; Infosys, Sun Pharma top gainers

    The headline indices Sensex and Nifty closed higher on Monday, on the back of a rally in IT and financial heavyweights. The Sensex closed 160 points higher at 38,896.71 while the Nifty is closed near the 11,600-mark. Infosys share price closed 7.2% higher at Rs 779.45 on BSE after the firm reported strong Q1 results in the April-June quarter. Sun Pharma shares ended 3.6% higher at Rs 422.40.  IndusInd Bank, L&T were among the top losers shedding more than 1.5% each. A look at LIVE Sensex heatmap.

    15:19 (IST)15 Jul 2019
    IndiGo promoters feud: Board to question Rakesh Gangwal on 19 July

    As the feud between IndiGo promoters Rakesh Gangwal and Rahul Bhatia intensifies, the airline’s board is likely to question the allegations made by Rakesh Gangwal and will take up the matter on 19 July 2019, according to a media report. The board of InterGlobe Aviation Ltd., the parent company of the domestic airline, will seek clarification from the co-founder Gangwal, who in a recently penned 14-page letter, accused independent directors of not being independent on government lapses, Business Standard reported. The IndiGo board is led by former SEBI chairman M Damodaran, who is now Independent Director at the airline’s board. Anupam Khanna is another Independent Director. Other than seeking clarification on Rakesh Gangwal’s allegations, the board will also question Gangwal as to why the matter went public instead of getting resolved at the board level, the national daily reported. 

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    15:07 (IST)15 Jul 2019
    Not backing out from buying Bhushan Power, but anxious about alleged fraud reports: JSW tells NCLT

    JSW Steel on Monday told the National Company Law Tribunal that the company is not backing out from the ongoing resolution process of Bhushan Power & Steel despite reports of alleged fraud by its former promoters. During the proceedings in NCLT, counsel appearing for JSW Steel informed the tribunal that it was anxious about the alleged fraud reports and needs to know what is going inside Bhushan Power & Steel Ltd (BPSL). A two-member NCLT bench headed by the President Justice M M Kumar asked the Resolution Professional (RP) of BPSL to hand over a copy of the forensic report to JSW Steel. NCLT said that alleged fraud reports will not have any impact on the insolvency resolution process and JSW’s resolution plan for BPSL.

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    14:44 (IST)15 Jul 2019
    China sneezes, India catches cold; Dragon’s slowest march in 27 years is a real cause of worry

    The Chinese economy grew by just 6.2 per cent on-year in the quarter to June, with the rate of GDP growth slowing to the lowest in the last 27 years, ie, since the first quarter of 1992. China’s Apr-Jun quarter GDP growth was slower than the previous quarter’s 6.4%. Steep decline in China’s growth is a result of the continued trade dispute with the US and alarming off-balance sheet borrowings by the local governments. Also, the businesses are held back from making big investments despite encouragement from the centre. Economists expected the GDP growth rate to be 6.3 per cent but it fell even below the expectations.

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    14:21 (IST)15 Jul 2019
    Allahabad Bank shares plummet 14% on reporting Bhushan Power fraud

    State-run Allahabad Bank’s shares saw a steep fall on Monday after the bank reported fraud of Rs 1,775 crore. Allahabad Bank’s shares fell sharply by 14.5 per cent to Rs 40.30 per share after it informed the exchanges that it has been defrauded by Bhushan Power & Steel to the tune of Rs 1,775 crore. Today, on BSE, the bank’s shares opened at Rs 42 per share against the previous close of Rs 47.15 per share, while on NSE, the shares opened at Rs 41.70 per share as against the last close of Rs 47.15 per share.   On the basis of Forensic Audit Investigation findings and CBI filing FIR, on suo moto basis, against the company and its directors, alleging diversion of funds from the banking system by Bhushan Power & Steel, a fraud of Rs 1,774.82 crore has been reported by Allahabad Bank to the Reserve Bank of India, according to the exchange filing.3

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    13:59 (IST)15 Jul 2019
    Grofers pumps additional capital in Series F round even as BigBasket, Amazon, Flipkart heats up competition

    SoftBank-backed online grocery venture Grofers, which announced $200 million in Series F round in May this year, has added modest $10 million to the existing round from Abu Dhabi-based Capital Investment LLC even as competition in the digital grocery segment continues to heat up with its bigger rival BigBasket turning unicorn in March this year apart from Flipkartand Amazon looking at grocery to ramp up their growth. Capital Investment LLC, which “appears to be an investment vehicle of the UAE based Abu Dhabi Investment Group,” has received 1.9 lakh Series F shares, according to the regulatory filing sourced from business signals platform Paper.vc.

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    13:35 (IST)15 Jul 2019
    WPI cheer continues; wholesale inflation falls to lowest in two years

    Wholesale price index (WPI) inflation rate fell to a 23-month low at 2.02 per cent in June 2019. WPI inflation rate was at 2.45 per cent in the previous month and the market expectation was 2.35 per cent. This is the second month in a row when the WPI inflation rate has come down. WPI inflation rate reached 5.28 per cent in October 2018, after which it did not reach that level. It was the lowest wholesale inflation rate since July 2017, amid a slowdown in cost of manufactured products and a marked decline in fuel prices. WPI change rate in manufacturing fell to 0.94 per cent in June, which was 1.28 per cent in the previous month. WPI inflation rate in fuel was -2.2 per cent in June, which was 0.98 per cent in May.

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    13:13 (IST)15 Jul 2019
    DHFL shares tumble 31 per cent on dismal Q4FY19 results

    Shares of Dewan Housing Finance fell significantly after it reported dismal results for the last quarter of FY 19. The DHFL shares slumped more than 31 per cent in the early trade on Monday to Rs 46.70 per share on BSE. The shares had opened at Rs 61.65 per share against the previous close of Rs 68.45 per share on the exchange. The housing finance company posted a net loss of Rs 2,223 crore for the Jan-Mar quarter. The company in a regulatory filing said it had defaulted on the interest payments due on two non-convertible debentures.

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    12:53 (IST)15 Jul 2019
    IndusInd Bank share price slumps after Q1 results; should you buy or sell stock?

    Shares of India’s major private sector lender IndusInd Bank slumped on Monday afternoon after the firm reported Q1 results on Friday. IndusInd Bank share price slumped by more than 2.1% to hit the day’s low at Rs 1,477 on BSE this afternoon. IndusInd Bank has reported a 38.3% jump in net profit to Rs 1,433 crore. Notably, the bank’s profit included numbers of IndusInd Financial Inclusion (Erstwhile Bharat Financial Inclusion) and associate IndusInd Marketing and Financial Services.

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    12:08 (IST)15 Jul 2019
    Jharkhand lifts most people out of poverty; still remains among poorest states

    Eastern state Jharkhand has made the fastest leap in bringing down the number of poor among fellow Indian states and has reduced the incidence of multidimensional poverty from 74.9 per cent to 46.5 per cent in the decade ending in 2016, The Indian Express reported. Jharkhand showed the steepest decline in the poor populace which was once second only to Bihar’s in 2005-06. However, it still remains one of the poorest Indian states with more than half of India’s poor populace concentrated in Bihar, Jharkhand, Uttar Pradesh, and Madhya Pradesh. 

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    11:40 (IST)15 Jul 2019
    Infosys shares soar 6% after Q1FY20 results; should you buy or sell stock?

    Shares of IT major Infosys surged after the company raised its revenue growth guidance for the Apr-Jun quarter of FY20. Today, in the early trading, Infosys shares soared 6 per cent to Rs 770 per share after it opened at Rs 762 per share against the last close of Rs 727 per share. It increased its revenue forecast to 8.5-10 per cent in constant currency terms from 7.5-9.5 per cent pegged earlier. The Bengaluru-based company reported 5.2 per cent growth in consolidated net profit to Rs 3,802 crore for Q1FY20. Infosys has also maintained an operating margin guidance range of 21 per cent – 23 per cent for FY20. Taking stock of the strong earnings for Apr-Jun, Sameer Kalra, Founder and Research Head at Target Investing has maintained a BUY call on the stock. 

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    11:16 (IST)15 Jul 2019
    BSE live: Sensex pares gains, Nifty below 11,550; Infosys, Yes Bank top gainers

    After opening higherSensex and Nifty pared gains in the late morning trade on Monday, tracking cues. The Sensex is up about 10 points to 38,745.44 while the Nifty is trading below the 11,550-mark. Infosys share price surged more than 5.5% in the morning trade to hit the day's high at Rs 767. Yes Bank shares zoomed more than 5% to Rs 99.20. Drugmaker Sun Pharma shares jumped more than 4% to Rs 421. VEDL, Heromotocorp, L&T were among the top losers shedding more than 1% each.  A look at LIVE Sensex heatmap.

    10:55 (IST)15 Jul 2019
    Stock corner: ‘Neutral’ on TCS, growth in Q1 came as a disappointment

    Results were below our forecast and consensus estimate on growth, but margins were in line. While the deal momentum was strong, we see risks to double-digit growth guidance for TCS on: (i) weakening macro indicators (slowing GDP growth, PMI in UK/EU and client financials) indicating slowing momentum; (ii) softness in BFSI given a weaker spending environment (in capital markets/large EU banks)/Manufacturing (EU/UK) and base effects in regional markets (contribute 60% of revenues); and (iii) steep asking rate of 2.5% CQGR over Q2-Q4 vs 1.7% in FY18 and 2.6% in FY19 (despite large insurance deals).

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    10:30 (IST)15 Jul 2019
    Budget 2019: Developing non-farm sector crucial to provide additional income to farmers

    Union Budget 2019-20: In the recent budget the honourable Finance Minister emphasized the need to boost the rural sector of our country and a separate section in her budget speech was devoted to rural India. Within the rural economy the state of the agricultural sector, which provides the largest share of employment in the country, can never be ignored. In her maiden budget speech, Nirmala Sitharaman has recognised the contribution of our farmers in achieving self-sufficiency in pulses and hoped that a similar result will be achieved for oilseeds as well. In her speech, she also emphasized the zero budget farming model.

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    10:04 (IST)15 Jul 2019
    Industry 4.0: Unleashing the power of AI in manufacturing

    Largely driven by Industry 4.0 and smart manufacturing initiatives, AI is creating self-adaptive and automatically reconfigurable production capabilities for manufacturers in India. Smarter robots, more connected and precise processes and more responsive supply chains are transforming the industry. As the long-term benefits associated with AI adoption are realised, we’re starting to see broader factory of the future initiatives, or if you prefer to call it, Industrial Internet of Things (IIoT), Connected Factory, or Smart Factory. The new initiatives and production lines being created are focusing on efficiency, flexibility and speed.

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    09:53 (IST)15 Jul 2019
    Stock corner: ‘Buy’ Ashok Leyland, revenue growth was strong in FY19

    Ashok Leyland reported strong revenue growth in FY2019 led by strong volume growth in the domestic M&HCV and LCV markets. However, Ebitda margin declined due to intense competition and high discounting. The company generated negative free cash flow due to high working capital requirements. However, we expect the MHCV industry to grow at a healthy pace in the medium term led by (i) strong growth in infrastructure activities and (ii) pre-buying due to BS-VI emission norms. Maintain Buy with fair value of Rs 130 as valuations are attractive at 11X FY2021e EPS.

    Also read: Stock corner: ‘Buy’ Ashok Leyland, revenue growth was strong in FY19

    09:52 (IST)15 Jul 2019
    China’s economy growth cools further amid US tariff war

    China’s economic growth slowed to its lowest level in a decade last quarter amid a tariff war with Washington, adding to pressure on Beijing to reverse a deepening slump. The world’s second-largest economy expanded by 6.2% over a year earlier in the three months ending in June, down from the previous quarter’s 6.4%, government data showed Monday. That was the slowest growth since the first quarter of 2009 in the aftermath of the global financial crisis. Chinese leaders have stepped up spending and bank lending to shore up growth and avert politically dangerous job losses. But they face an avalanche of unexpectedly bad news including plunging auto sales as they fight a trade battle with President Donald Trump over Beijing’s technology ambitions. The economy faces a “complex environment both at home and abroad,” the National Bureau of Statistics said in a statement.

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    09:31 (IST)15 Jul 2019
    BSE live: Sensex up 150 points, Nifty above 11,600; Infosys, Sun Pharma top gainers

    The headline indices Sensex and Nifty opened higher on Monday, tracking positive global cues. The Sensex is up about 175 points to 38,902.86 while the Nifty is trading above the 11,600-mark. Infosys share price surged more than 5.5% in the morning trade to hit the day's high at Rs 767. Yes Bank shares zoomed more than 5% to Rs 99.20. Drugmaker Sun Pharma shares jumped more than 4% to Rs 421. VEDL, Heromotocorp, L&T were among the top losers shedding more than 1% each. A look at LIVE Sensex heatmap.

    09:19 (IST)15 Jul 2019
    Relief for power firms: Govt asks Aptel to crack down on ‘regulatory assets’

    With the government planning to improve finances of the state-owned power distribution companies (discoms) to equip them for supplying 24×7 electricity, the power ministry has written to the Appellate Tribunal For Electricity (Aptel), asking it to direct the state electricity regulators not to create any further ‘regulatory assets’— a jargon for recoverable discom expenses which regulators acknowledge as pass-through costs, but are not immediately built into tariffs. These ‘regulatory assets’ currently stand at around Rs 1.35 lakh crore and about half of these were created since the launch of the Uday scheme in FY16. According to official sources, regulatory assets in Maharashtra went up 390% to Rs 12,382 crore since the Uday launch and Uttar Pradesh saw a rise of 25% to Rs 33,000 crore in this period.

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    09:00 (IST)15 Jul 2019
    Central PSUs miss capex targets, still contribute big on asset creation

    The combined capital expenditure by the central public sector enterprises (CPSEs) and departmental undertakings (DUs) such as the NHAI and the Indian Railways has moderated during FY19, but still contributed in good measure to fixed assets creation in the economy amid persistent weakness in private investments. These entities have fallen short of their ambitious capex targets set at the beginning of the year after the accelerated pace gathered in FY18. As many as 35 CPSEs and DUs with annual capex plans of Rs 500 crore and above invested Rs 4.36 lakh crore in FY19, which was 92% of the yearly target. On a year-on-year basis, however, capex by these entities fell 1.1%, in what reflected the drying up of cash reserves with them owing to robust investments made over the last few years on the government’s prodding. The liberal dividends they are made to pay and buybacks also depleted their surplus cash.

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    08:55 (IST)15 Jul 2019
    Budget 2019: Govt’s planned infra boost calls for overhaul, say analysts

    Budget 2019 India: Unless the government implements key changes in the PPP model to rope in the private investors, including those with deep pocket like global pension funds — the recommendations of the Kelkar Committee are a strong grounding to work upon — the Budget promise to scale up infrastructure investments to Rs 20 lakh a year could remain a pipe dream, analysts said. To leverage financing and improve operational efficiencies, involvement of the private sector is the key. So, model PPP contract agreements need to be rewritten to allow optimal risk allocation among all stakeholders and renegotiations during the tenure of the concession agreement with full disclosure of the revised costs, risks and benefits, they added.

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    08:46 (IST)15 Jul 2019
    Telecom talks: Airtel loses rural subscribers, Jio sees a rise

    Since launching its mandatory minimum Rs 35-a-month recharge, Bharti Airtel seems to have lost rural subscribers. At the end of March, its rural subscribers stood at 45.86% of the overall user base. This was 49.56% in December end. Jio’s rural base during the same period rose from 35.87% in December end to 37.92% in March end.

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    08:38 (IST)15 Jul 2019
    Amazon, Flipkart not on Mukesh Ambani’s radar; Reliance Jio readies platform to wire kirana stores

    Reliance Jio, which has plans to foray into e-commerce, will not be taking on the likes of Flipkart and Amazon, at least initially. Instead, the company’s first project on which pilots have started is to build a B2B platform targeted at merchants who run grocery, fruits and vegetable stores in the neighbourhood markets. The company has termed it ‘Hybrid Online-to-Offline’ platform.  At a later stage, this B2B platform would be connected to the MyJio app and thus provide the B2C interface also. Sources in the know said the B2B platform, for which an app has been developed, will require kirana merchants to become members of Jio Prime after which they can procure groceries, fruits, and vegetables by placing orders on the app, and the platform will take care of their full inventory management.

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    08:32 (IST)15 Jul 2019
    Central PSUs miss capex targets, still contribute big on asset creation

    The combined capital expenditure by the central public sector enterprises (CPSEs) and departmental undertakings (DUs) such as the NHAI and the Indian Railways has moderated during FY19, but still contributed in good measure to fixed assets creation in the economy amid persistent weakness in private investments. These entities have fallen short of their ambitious capex targets set at the beginning of the year after the accelerated pace gathered in FY18. As many as 35 CPSEs and DUs with annual capex plans of Rs 500 crore and above invested Rs 4.36 lakh crore in FY19, which was 92% of the yearly target.

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    08:31 (IST)15 Jul 2019
    Worst not yet over for carmakers, says Mahindra and Mahindra’s Pawan Goenka

    The complete collapse in automobile sales has left many perplexed, with volumes expected to clock a modest 3-5% growth in the new fiscal. In the first three months of the financial year, passenger vehicle sales declined by 18.42%. While several factors have come together to contribute to the sharp decline in sales, Mahindra & Mahindra managing director Pawan Goenka is of the view that it is hard to point to any one reason that can possibly explain the industry’s worst show in 18 years. “Even if I add up all the reasons for the slowdown, it doesn’t explain the kind we are seeing. There is something about this animal called ‘sentiment’ that is causing the slowdown. The concern is that the worst is not over yet,” he said.

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