Sensex Ends Marginally Higher; Energy and IT Stocks Witness Buying
Closing

After opening the day on a strong note, Indian share markets erased most of the gains and turned highly volatile in the afternoon session.

Benchmark indices erased gains during closing hours tracking weakness in banking and finance stocks.

Sectoral indices ended on a mixed note with stocks in the energy sector and IT sector witnessing buying interest.

Meanwhile, banking stocks witnessed selling pressure.

After rising more than 400 points in early trade, the BSE Sensex ended the day up by 99 points.

Meanwhile, the NSE Nifty stood higher by 47 points.

SGX Nifty was trading at 10,810, up by 39 points, at the time of writing.

The BSE Mid Cap index ended up by 0.1%. The BSE Small Cap index ended down by 0.2%.

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Asian stock markets ended on a positive note today as stocks gained ignoring global rise in coronavirus cases, giving more weight for expected government stimulus.

As of the most recent closing prices, the Hang Seng was up 0.2% and the Shanghai Composite stood higher by 1.8%. The Nikkei ended up by 2.2%.

European stock markets opened higher today as French and Italian industry output data rebounded more than expected in May.

Gold prices are trading up by 0.6% at Rs 49,149 per 10 grams.

The rupee is trading at 75.19 against the US$.

Market participants were tracking Avenue Supermarts share price. Shares of the company declined over 5% today after the company reported an 88% fall in its net profit for the April-June quarter (Q1FY21).

Avenue Supermarts, the operator of hypermarket stores DMart, said that operations and financial performance during the quarter were hit by the lockdown. Revenues were down 32% from the previous year.

Consolidated total revenue for the hypermarket chain stood at Rs 39.3 billion in the June quarter, down from Rs 58.3 billion in the same quarter last year.

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In news from the realty sector, shares of Omaxe were locked in 5% down circuit at Rs 75.85, an 11-year low, despite the company issuing a clarification regarding the recent volatility in the stock price.

The real estate firm's stock was locked in lower circuit for 12th straight trading day today. The stock is trading at its lowest level since July 14, 2009.

Recently, the company had issued a clarification to the exchanges, saying the movement in the share price is purely due to market conditions and based on demand and supply principles.

According to the disclosure made by the company on Friday, July 10, lender Venus India Asset-Finance Private Limited has invoked 160,000 equity shares held by Guild Builders Private Limited, one of the promoters of Omaxe.

As on March 31, 2020, out of total 74.15% or 135.63 million equity shares held by promoters, about 52.32% or 70.97 million equity shares were pledged, the shareholding pattern data shows.

Omaxe, which was scheduled to announce its January-March quarter (Q4FY20) earnings on June 29, has postponed the same by a month.

On June 26, the company had informed the stock exchange that the board of directors of the company are now scheduled to meet on July 29, 2020 to approve the Q4 results.

The board will also consider and recommend dividend on preference shares and equity shares. It will also approve the enabling resolution for shareholder's approval to undertake fund raising activity.

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Moving on, in latest developments from the IPO space, after a four-month lull in the IPO market, Rossari Biotech's public issue opened for subscription today.

In the Rs 5 billion IPO, Rossari Biotech has fixed a price band of Rs 423-425 per equity share and the issue will remain open till July 15th.

Rossari Biotech's IPO comprises fresh issuance of shares worth Rs 500 million and sale of 1,05,00,000 equity shares by company's promoters through offer-for-sale route. Post the IPO, the promoter shareholding will fall to 73% from 95% earlier.

Investors can bid in lot sizes of 35 shares. The equity shares will be listed on the NSE and BSE.

The net proceeds from the IPO will be utilised for funding working capital requirements, repaying certain debt availed by the company and for general corporate purposes.

Rossari Biotech is a specialty chemicals manufacturing firm with focus on home and personal care, performance chemicals, textile specialty chemicals and animal health and nutrition products.

At the time of writing, the issue had received bids for 27,58,560 shares, which was 34% of the issue size of 81,73,530 shares.

On Friday, the company raised Rs 1,488.7 million from anchor investors, who included top three fund houses - SBI Mutual Fund, HDFC Mutual Fund and ICICI Prudential Mutual Fund.

Speaking of IPOs, in one of the editions of The 5 Minute WrapUp, Ankit Shah has shared how IPOs offer insights into the mood of the stock markets.

He picked the six most successful IPOs of 2019 and checked the retail investor enthusiasm for them.

Obviously, all these IPOs were oversubscribed across investor categories. But the level of retail investor enthusiasm differed widely, depending on the overall market sentiments.

This can be seen in the chart below:

Are Retail Investors Back in the IPO Game?

Here's what Ankit wrote about it...

  • Clearly, IRCTC witnessed the highest number of bids for the retail category. Factoring in the discount of Rs 10 per share for the retail category, the total bids were worth a whopping Rs 3,242 crore. Over five times the entire IPO size!

    Polycab India and the recent IPO of CSB Bank also received a strong thumbs-up from retail investors.

Does this hint that retail investors are coming back to the markets? It would be interesting to see how this trend pans out in 2020.

We will keep you updated on all the developments from this space. Stay tuned!

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


Sensex Trades in Green; Tech Mahindra & Reliance Industries Top Gainers
12:30 pm

Share markets in India have erased some of the early morning gains but are still trading on a positive note, tracking global cues.

The BSE Sensex is trading up by 211 points, at 36,800 levels.

Meanwhile, the NSE Nifty is trading up by 68 points.

The BSE Mid Cap index is trading up by 0.2%. The BSE Small Cap index is trading up by 0.3%.

On the sectoral front, gains are largely seen in the energy sector and IT sector.

Finance stocks, on the other hand, are witnessing selling pressure.

The rupee is trading at 75.15 against the US$.

Gold Prices are trading up by 0.4% at Rs 49,068.

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Moving on, Reliance Industries is among the top buzzing stocks today. Shares of the company rose over 3% today and hit a lifetime high of Rs 1,947 on the BSE, after it announced the sale of 0.15% stake in Jio Platforms to Qualcomm Ventures for Rs 7.3 billion.

Shares of the company hit an all-time high of Rs 1,947, pushing its market capitalisation over Rs 12.09 trillion, a record for an Indian company.

On Sunday, Qualcomm Ventures, the investment arm of Qualcomm Inc., said it will invest Rs 7.3 billion in Jio Platforms, becoming the 12th entity to invest in the digital services subsidiary of Reliance Industries in over three months.

In news from the chemical sector, shares of Clariant Chemicals zoomed 18% today after the company announced a special interim dividend of Rs 140 per share (1400%) for the current financial year 2020-21 (FY21).

The company has fixed July 18, 2020 as the record date for the purpose of payment of special interim dividend. The dividend shall be paid on or after July 19, 2020.

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The stock of the specialty chemical was trading at its fresh 52-week high level. In the past three months, it has rallied 106%.

For the previous financial year 2019-20, the company had reported a more-than-double net profit at Rs 710 million, compared to Rs 300 million in the corresponding previous year (FY19).

Clariant Chemicals share price is presently trading up by 14%.

Moving on to news from the banking sector, shares of Yes Bank declined 17% in the intra-day trade today, on the back of heavy volumes after the bank on Friday fixed floor price for its proposed follow-on public offer (FPO) at Rs 12 per share and a cap of Rs 13 per unit.

The fundraising is important for the bank to boost its capital base, especially after it announced last month that it has failed to make interest payments on its bonds, after the RBI said its capital adequacy ratio was below regulatory ratio.

On a reported book value basis, Yes Bank's FPO is priced below its FY20 book value and the 50% discount to current market price seems to partly capture the future pain. However, reports state that on adjusted book value basis, the FPO is priced at above 1x.

According to reports, though the discount suggests that there could be some short-term gains, valuations are not significantly attractive. Also, Yes Bank's asset quality concern, which could aggravate due to Covid-19-led economic disruptions, offer little comfort.

Meanwhile, the market regulator may look into a large amount of share transaction of the private lender under the Securities Lending and Borrowing Mechanism (SLBM) on July 9.

These transactions took place a day prior to the announcement of the bank's floor price for its FPO.

In other news, the Enforcement Directorate (ED) is expected to file the second prosecution complaint in the Yes Bank money laundering case today.

The agency may file the complaint against 13 individuals and entities including Dewan Housing Finance (DHFL) promoters Kapil and Dheeraj Wadhawan.

Earlier this month, the ED provisionally attached properties worth Rs 24 billon belonging to Yes Bank co-founder Rana Kapoor and the Wadhawan brothers.

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The investigating agency has also raided the premises of travel company Cox and Kings and recorded statements of its founder Peter Kerkar and media baron Subhash Chandra in this case.

Yes Bank share price is presently trading down by 11%.

Speaking of the banking sector, note that 2019 was brutal for some banking stocks.

The market has severely punished them. This is due to issues such as worsening asset-quality, corporate governance, and inadequate capital.

Stocks such as Yes Bank and Lakshmi Vilas Bank are down more than 70%.

Falling Knives in the Banking Sector

Falling stock prices could be enticing. After all, we love deep discounts and good bargains.

But if you're thinking of buying these stocks it's important to remember this point - If a stock is in a falling spree, there's probably a good reason behind it.

And realising this in a falling market is the first step towards correcting one's investing process.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


Sensex Opens Higher; Realty Stocks Lead
09:30 am

Asian stock markets are higher today as Chinese and Hong Kong shares show gains. The Shanghai Composite is up 0.7% while the Hang Seng is up 0.4%. The Nikkei 225 is trading up by 1.7%.

US stocks rose on Friday as a positive analysis on Gilead Sciences Inc's antiviral drug to treat COVID-19 helped soothe investor worries over a record rise in coronavirus cases in the United States and as financial shares surged.

Back home, Indian share markets opened higher.

The BSE Sensex is trading up by 286 points. The NSE Nifty is trading up by 92 points.

Meanwhile, the BSE Mid Cap index has opened up by 1%.

BSE Small Cap index is also trading higher by 0.5%.

All sectoral indices are trading in the green. BSE Realty is witnessing maximum buying interest.

Moving on, the rupee is currently trading at 75.19 against the US$.

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Gold prices are currently trading down at Rs 48,863.

Speaking of the current stock market scenario, the last few months have witnessed the kind of shifts that most investors would recall as once in a lifetime.

The Sensex is up over 34% from the lows in March 2020. At that time, it had declined by over 20%. That seemed to suggest the start of a bear market.

What's Driving the Markets?

So, what's driving the markets? An important driver of this rally is the inflow from global funds, now that the global economies have opened the liquidity tap.

Investors and traders who are new to stock markets have had a superb experience over past three months as almost any and every stock has given them phenomenal returns.

The problem is that this experience may not be lasting unless investors now take a careful look at their portfolio and literally sanitize them to get rid of the unwanted elements.

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In her latest video, co-head of Research at Equitymaster, Tanushree Banerjee shows three charts that every investor must see today, irrespective of whether you are an investor or a day trader, a novice or an expert in the stock markets.

Tune in here...

Moving on to the stock specific news...

Reliance Industries is among the top buzzing stocks today ahead of its annual general meeting (AGM) to be held on 15 July.

As in the past, market participants are expecting a slew of big-ticket announcements, and details of the recently launched videoconferencing app, JioMeet.

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With the theme 'Make in India, Made for India', further plans for Jio Platforms are also likely to be unveiled, the reports noted.

Further plans for JioMart, the e-commerce venture of RIL subsidiary Reliance Retail, which has already rolled out services across the major cities, are also expected to be unveiled.

The markets and shareholders are also awaiting the announcements of Jio Platforms' listing, probably on the global bourses.

At its AGM, Mukesh Ambani is also expected to throw light on the US$15-billion deal with Saudi Aramco.

We will keep you updated on developments from this space.

Reliance Industries share price opened the day up by 1.6%.

Alembic Pharma is in focus today after it was reported that the company is looking at enhancing profitability of its domestic business and expects it to grow in double digits in the current financial year with focus on high-margin products.

The company stated that it has already started witnessing an uptick in domestic business with new product strategy in place.

In FY20, the company's revenues from domestic business stood at Rs 14.3 billion, a growth of 3% over Rs 13.8 billion in FY19 and accounted for 31% of the company's overall revenues that stood at Rs 46.1 billion.

The company's international generics business, on the other hand, accounted for 54% of its overall revenues in FY20.

The company is investing in capacity expansion at existing plants as well as in setting up new manufacturing facilities.

Benefits from these expansions are likely to start from FY22, the company stated.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


SGX Nifty Trades Higher, PNB Reports DHFL Fraud, TCS June Quarter Numbers, and Top Buzzing Stocks Today
Pre-Open

Indian share markets witnessed selling pressure on Friday, tracking weak global cues as coronavirus cases continue to surge across the world.

Benchmark indices also fell amid concerns of fresh set of lockdowns due to rise in coronavirus cases.

At the closing bell on Friday, the BSE Sensex stood lower by 143 points, down 0.4%.

The NSE Nifty closed down by 45 points, down 0.4%.

The BSE Mid Cap index ended down by 0.8%. The BSE Small Cap index ended down by 0.4%.

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Among sectoral indices, banking stocks and finance stocks were among the hardest hit.

Energy stocks on the other hand, witnessed buying interest.

At 8:15 am today, the SGX Nifty was trading up by 68 points, or 0.63% higher at 10,850 levels. Indian share markets are headed for a positive opening today following the positive trend on SGX Nifty.

Speaking of the current stock market scenario, have a look at the chart below which shows how the BSE Sensex and the smallcap index have moved over the past one year:

The markets are coming out of the deep fall. An important driver of this rally is the increasing inflow from foreign institutional investors now that the global economies have opened the liquidity tap.

A lot of this money is coming to the mid and smallcap space.

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In his latest video, Rahul Shah talks about a very effective technique for zeroing in on the right penny stock.

He also shares how can one go about implementing the same.

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Top Stocks in Focus Today

Yes Bank will be among the top buzzing stocks today.

This comes as private lender Yes Bank informed the exchanges that the floor price for its Rs 150 billion Further Public Offering (FPO) has been fixed at Rs 12 per equity share and a cap of Rs 13 per share.

The decision was taken at the meeting of the Capital Raising Committee (CRC) of Yes Bank, the lender said in a regulatory filing. The Yes Bank FPO will involve bidding in the lots of 1,000 equity shares and a discount of Rs 1 will be given to eligible employees of the bank bidding in the Employee Reservation Portion.

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Shares of insurance companies will also be in focus today as their new business premiums (NBP) contracted by lesser margin on a year-on-year (YoY) basis in June as compared to April and May.

The NBP of life insurance companies contracted 10.46% year-on year (YoY) in June. Life insurers had seen their NBP decline 32.6% and 25.4% in April and May, respectively.

In June, life insurers earned NBP to the tune of Rs 288.7 billion, compared to Rs 322.4 billion in the same period a year ago. NBP is the premium acquired from new policies for a particular year.

Shares of SBI Life Insurance and HDFC Life Insurance Company will be in focus on back of the above news.

PNB Reports Rs 36 Billion DHFL Loans as Fraud

Punjab National Bank (PNB) is among the top buzzing stocks today.

Shares of PNB tumbled on Friday, a day after the lender declared its Rs 36 billion exposure to Dewan Housing Finance (DHFL) as a fraudulent account.

In an exchange filing, the country's third largest public sector bank said the fraud in the non-performing asset account of DHFL "at Large Corporate Branch" in Mumbai was reported to the Reserve Bank of India (RBI).

The bank added that it has already made provisions amounting to Rs 12.5 billion, as per prescribed prudential norms.

This is the fourth scandal Punjab National Bank has reported in three years. PNB was hit by a Rs 11--billion fraud involving billionaire jeweler Nirav Modi in 2018.

Non-banking financial company DHFL is in bankruptcy proceedings.

In November last year, the RBI had sent the troubled mortgage lender DHFL for bankruptcy proceedings, making it the first financial services player to go to the NCLT for a possible debt resolution.

DHFL came in the eye of the storm after a report suggested that the company, through layers of shell companies, allegedly siphoned off Rs 310 billion out of total bank loans of Rs 970 billion.

After alleged violations in the company came to light last year, various agencies, including SFIO, had initiated probe.

Other banks including State Bank of India (SBI) and Union Bank have also reported Dewan Housing Finance's accounts as fraudulent.

We will keep you updated on the latest developments from this space. Stay tuned.

TCS June Quarter Earnings

In news from the IT sector, Tata Consultancy Services (TCS) flagged off the June quarter earnings season by reporting a profit at Rs 70.1 billion, down 12.9% quarter-on-quarter (QoQ), dented by lockdown-led supply and demand challenges.

The year-on-year (YoY) fall in profit at TCS stood at 13.8%, which was partially impacted by a 67.8% YoY (down 19% QoQ) decline in other income to Rs 4.6 billion.

Consolidated revenue declined 4.1% sequentially to Rs 383.2 billion in the quarter ended June, impacted by all segments, barring banking, financial services and insurance (BFSI).

Revenue, however, increased 0.4% YoY. Dollar revenue declined 7.1% QoQ to US$5,059 million in Q1, while revenue in constant currency terms dropped 6.9% QoQ.

Constant currency revenue growth in Q1FY19 and Q4 FY19 stood at 10.6% and 3%, respectively.

To know more, you can read TCS' Q1FY21 result analysis on our website.

Equity Mutual Fund Inflows Crash in June

Inflows into equity mutual funds crashed in June despite Indian indices surging.

Net investments into equity and equity-linked schemes tumbled 95% over the preceding month to Rs 2.4 billion in June. This was the third straight monthly drop.

Large- and multi-cap schemes saw the first ever outflow in June since April 2019.

Equity multi-cap funds saw a month-on-month outflow of Rs 7.8 billion in June, while investors withdrew Rs 2.1 billion from large-cap schemes.

Net investments in small and midcaps rose at a slower pace.

It would be interesting to see how this trend pans out in July. We will keep you updated on all the news form this space. Stay tuned.

Meanwhile, here's an interesting market data reported by Economic Times recently.

Nearly,1.2 million new demat accounts were opened in the month of March and April during the lockdown.

Most people are drawn to trading because of the availability of free time during the lockdown. It doesn't take much of an effort to enter the markets. But it would take hell of an effort to survive and profit from the market.

If you are one of those new to trading, and if you want to learn more about using technical analysis and charts to improve your trading, you can read this free article: The Secret to Success in Intra-Day Trading.

And to know what's moving the Indian stock markets today, check out the most recent share market updates here.