Sensex Ends 748 Points Higher; Energy and Finance Stocks Rally
Closing

Indian share markets continued their momentum and ended on a strong note today.

The three-day Monetary Policy Committee meeting kicked off today, which could be driving the market sentiment amid hope for more measures to support the economy.

Majority of experts feel the MPC members may cut repo rate by another 25 bps on Thursday in addition to 115 bps cut in previous two meetings.

At the closing bell, the BSE Sensex stood higher by 748 points (up 2%).

The NSE Nifty closed higher by 211 points (up 1.9%).

The SGX Nifty was trading at 11,082, up by 171 points, at the time of writing.

The BSE Mid Cap index ended up by 1%.

The BSE Small Cap index ended up by 1.2%.

On the sectoral front, gains were largely seen in the energy sector and finance sector.

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IT stocks were under pressure today after US President Donald Trump signed an executive order restricting federal agencies from contracting or subcontracting foreign workers, hurting Indian IT professionals who work in the US on the H-1B visa.

Asian stock markets ended higher after the Reserve Bank of Australia (RBA) maintained its current policy settings. Also, Australia's retail sales data for June showed 2.7% growth compared to May.

As of the most recent closing prices, the Hang Seng ended up by 2% and the Shanghai Composite stood higher by 0.1%. The Nikkei ended up by 1.7%.

The rupee was trading at 75.04 against the US$.

Gold prices are trading down by 0.2% at Rs 53,900 per 10 grams.

Speaking of the current stock market scenario, note that after over 2 years of lag, the smallcap index is beating Sensex in the post Covid rebound.

As per Richa Agarwal, lead smallcap analyst at Equitymaster, the next few days would be crucial for making big gains in smallcap stocks.

But while it is time to act, you must tread with caution. Post Covid, Richa expects a lot of clean up in the smallcap space, with only a few quality stocks emerging as winners.

She will be revealing more about these quality stocks online at her Rebound Riches Summit on Friday, 7 August 2020.

To book your free seat for this summit, please click here.

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Moving on, BPCL was among the top buzzing stocks today.

Shares of the company tanked over 6% today after media reports said the divestment of government's stake in the oil marketing company is unlikely to fructify in the current financial year.

Reportedly, the government expects BPCL stake sale to go beyond FY21 as delay in inviting bids to pick stake in the oil refiner will delay the entire process of divestment.

Market participants were also tracking VST Industries share price.

Shares of the company rallied as much as 11% today, a day after the company reported its June quarter numbers for the fiscal year 2020-21 (FY21).

The company reported net profit rose at Rs 757.1 million for the quarter under review as against Rs 756.8 million logged during the corresponding quarter of the previous fiscal.

The company's sales, however, declined 19.4% to Rs 2,453.9 million as against Rs 3,044.5 million in the year-ago quarter.

In a separate filing to exchanges on the impact of Covid-19 pandemic on the company's business operations, VST Industries said that the business operations were adversely impacted in the form of disrupted supply chain and decline in consumer demand.

"Since mid-May 2020, while the manufacturing operations have gradually started returning to normalcy, we estimate the pandemic to continue having its impact on sales," it said in the press release.

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In news from the economic space, India's economic recovery remains "fragile" due to rising number of coronavirus cases and states intermittently ordering lockdowns to contain the disease, said the Finance Ministry.

On July 30, the government issued guidelines for the third phase of lifting curbs imposed to stop the spread of the coronavirus disease, removing night curfew outside containment zones and allowing gyms and yoga centres to reopen from August 5.

The guidelines said that schools, colleges, theatres, swimming pools, metro rail, cinema halls and bars will remain closed.

As per the ministry's monthly economic report, India is well on the path to a recovery from a trough in April, ably supported by proactive government and central bank policies. However, the increase in the Covid cases and subsequent intermittent lockdowns make the recovery prospects fragile and call for constant and dynamic monitoring.

The report further said that recovery is linked to how Covid-19 infections evolve across states. India's top 12 growth driving states account for 85% of the Covid-19 case load, with 40% of confirmed cases concentrated in the top two growth drivers i.e. Maharashtra and Tamil Nadu.

The report said that the worst for the economy seemed to be over as high frequency indicators showed a recovery in June compared to May and April.

Indicators include goods and service tax (GST) collections, electricity consumption, rail freight and passenger data, petrol and diesel consumption, and highway toll collections.

GDP figures of April-June quarter of 2020, slated to be released towards end of August, will throw some light on the expected recovery of the Indian economy.

We will keep you updated on the latest 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 Surges 550 Points; HDFC Bank & Reliance Industries Top Gainers
12:30 pm

Share markets in India continued their upward climb today amid buoyed global equities, driven higher by energy and banking stocks.

Reversing from declines for four straight sessions, benchmark indices edged higher today tracking strong cues from global peers and upbeat Q1 earnings.

The BSE Sensex is trading up by 566 points, up 1.5%, at 37,500 levels.

Meanwhile, the NSE Nifty is trading up by 158 points.

The BSE Mid Cap index is trading up by 0.7%.

The BSE Small Cap index is trading up by 1.2%.

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

IT stocks, on the other hand, are witnessing selling pressure today after US President Donald Trump signed an executive order restricting federal agencies from contracting or subcontracting foreign workers, hurting Indian IT professionals who work in the US on the H-1B visa.

The rupee is trading at 75.09 against the US$.

Gold prices are trading down by 0.3% at Rs 53,851 per 10 grams.

Speaking of the current stock market scenario, individual investors who have missed the rally in stocks over past three months are trying to catch up. They believe that since they missed the bus then, they should make up for it by buying the stocks that look cheap now.

The problem is that most of the stocks that apparently look cheap are undervalued for a reason. And blindly buying into them could be fraught with risk.

In her latest video, Tanushree Banerjee talks about how cheap and high dividend yield stocks could be value traps.

Tune in to find out more:

Moving on, HDFC Bank is among the top buzzing stocks today.

Shares of the private lender jumped 6% after the Reserve Bank of India (RBI) approved Sashidhar Jagdishan as the bank's next chief executive officer.

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The private sector lender received the RBI's approval letter last night. Jagdishan is currently additional director and head of finance, human resources, at the bank.

He will take over from Aditya Puri, who will step down as the bank's longest serving CEO ever since he took charge 26 years ago. Puri is set to retire by October this year.

Jagdishan was the bank's top choice among the three shortlisted candidates, with Kaizad Bharucha and Sunil Garg also in the running.

In November, the bank had constituted a six-member search committee to find a replacement for Puri.

Over the last few months, HDFC Bank had seen a flurry of senior level exits of Abhay Aima, group head of private banking, Ashok Khanna, group head of secured vehicle loans, and Munish Mittal, chief information officer - all veterans and close aides of Puri.

While Khanna's exit was linked to allegations of conflicts of interest in the purchase of global positioning systems for vehicles financed by the bank, Aima and Mittal stepped down due to personal reasons.

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In 2018, private sector lender Axis Bank had a similar series of high-level exits after the retirement of Shikha Sharma, who was succeeded by Amitabh Chaudhary as managing director and chief executive officer.

HDFC Bank share price is presently trading up by 4.2%.

Note that, HDFC Bank is one that has always adapted to changing times.

HDFC Bank wanted to transform itself from a leader in the physical banking to a leader in online banking. Since then, HDFC Bank has constantly focused on going digital.

In 2004, only 10% of customer transactions were initiated through internet and mobile. The number has gone up to 92% in 2019.

HDFC Bank's Digital Transformation

It is a great example of a company which has taken advantage of its scale and embraced disruption rather than fear it.

These are traits that one should look for in picking stocks. They not only withstand the disruption but also gain from it in the long-run.

Moving on to news from the pharma sector, shares of Wockhardt are witnessing buying interest today.

Shares of the company extended their gains into third consecutive day today after the company said it will supply millions of doses of multiple Covid-19 vaccines, including that being developed by AstraZeneca and Oxford University, under a deal with the UK government.

With today's gains, the stock has rallied about 28% in the past three days.

This is the latest step by the UK to secure supplies and production of Covid-19 vaccines after striking four deals with drug makers to buy their potential shots.

The UK government has also reserved one fill-and-finish production line at a Wockhardt subsidiary in Wrexham, Wales for its exclusive use for the next 18 months to secure supply. It is expected to start the Wexham line in September.

Wockhardt share price is presently trading up by 8.3%.

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


Sensex Opens Higher; Automobiles and Healthcare Stocks Lead
09:30 am

Asian stock markets are higher today as Chinese and Hong Kong shares show gains. The Shanghai Composite is up 0.3% while the Hang Seng is up 0.6%. The Nikkei 225 is trading up by 1.4%.

Nasdaq surged to a record high close on Monday as a rebound in multibillion-dollar deals, including Microsoft's pursuit of TikTok's US operations, lifted sentiment, and efforts to hammer out a coronavirus relief bill resumed.

The SGX Nifty is trading positive in the morning session.

Back home, Indian share markets have opened the day on a positive note.

The BSE Sensex is trading up by 187 points.

The NSE Nifty is trading up by 70 points.

Meanwhile, the BSE Mid Cap index has opened up by 0.9%.

BSE Small Cap index is also trading higher by 1%.

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All sectoral indices are trading in green. BSE automobiles Index is witnessing buying interest, with TVS Motors and Bosch among the top gainers.

Moving on, the rupee is currently trading at 75.18 against the US$.

Gold prices are currently trading up by 0.3% at Rs 53,997.

Moving on to the stock specific news...

Bandhan Bank is among the top buzzing stocks today after it was reported that, Bandhan Bank's promoter will sell Rs 105 billion worth of equity stake in the private sector lender through a block deal on Monday.

The block deal involves selling 337.4 million shares in the lender at a floor price of Rs 311 per share, as per the terms sheet. The floor price is about 10% lower than Bandhan Bank's Friday closing price of Rs 345.25.

The bank's main shareholder Bandhan Financial Holdings Limited (BFHL or NOFHC), which currently owns 61% shares in the lender, is expected to offload about 21% stake in Bandhan Bank.

The move is a part of the bank's effort to bring down promoter shareholding in the lender to meet the Reserve Bank of India (RBI) regulatory norms.

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As per the RBI's new banking licensing norms, banks have to bring down the promoter holding to 40% within three years from the date of commencement of business.

Bandhan Bank share price opened the day up by 0.6%.

In the news from financial markets. As per an article in a leading financial daily, equity mutual funds in India may witness their first monthly net outflows in more than four years as investors continue to cash out to tide over the pandemic-related credit crunch, while others hold off adding more in a rising stock market.

Net withdrawals from stock plans may top Rs 10 billion (US$134 million) in July, the reports noted. That would be the first net outflow since March 2016. AMFI data for July is due early next month.

Some are redeeming to book profits after the rebound and others are selling to meet the cash crunch in their businesses in the absence of bank finance.

Gross flows to equity funds are holding up but there's no let-up in redemptions. There will be net outflow for July as things stand today, the reports noted.

Speaking of mutual funds, have a look at the chart below which shows recent net inflows into equity mutual funds:

Investors did well to pour more money into stocks (via mutual funds) in April 2020 and thus, take advantage of the sharp correction.

However, it goes all downhill after that. Inflows fell in both May as well as June this year when stocks were still on sale.

In fact, they fell by a whopping 97% in June 2020.

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This means that if investors had bought Rs 100 worth of stocks when they were very expensive, they bought only Rs 3 worth of stocks when they had turned significantly cheaper.

Speaking of stock markets, in his latest video, co-head of research, Rahul Shah talks about how you can make winning penny stock investments with the help of few simple ratios.

He talks about the most critical data points that are needed to make successful penny stock investments.

Tune in to find out more:

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


SGX Nifty Up 40 Points, India's July Manufacturing PMI, Jump in Auto Sales, and Top Buzzing Stocks Today
Pre-Open

Indian share markets ended their day deep in the red yesterday, amid a huge selloff in banking and financial services stocks.

Sentiment was weighed down by disappointing factory data and fear of extension of loan moratorium for banks. Finance Minister Nirmala Sitharaman said the ministry was working with the Reserve Bank of India (RBI) on restructuring of loans and extension of moratorium on term loans.

At the closing bell yesterday, the BSE Sensex stood lower by 667 points (down 1.8%). The NSE Nifty closed down by 174 points (down 1.6%).

The BSE Mid Cap index ended down by 0.3%. Meanwhile, the BSE Small Cap index ended up by 1%.

On the sectoral front, banking stocks and finance stocks were the hardest hit.

At 8 am today, the SGX Nifty was trading up by 40 points, or 0.3% higher at 10,950 levels. Indian share markets are headed for a positive opening today following the positive trend on SGX Nifty.

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Speaking of stock markets, in his latest video, co-head of research, Rahul Shah talks about how you can make winning penny stock investments with the help of few simple ratios.

He talks about the most critical data points that are needed to make successful penny stock investments.

Tune in to find out more:

Top Stocks in Focus Today

Godrej Agrovet will be among the top buzzing stocks today after the company reported a 29.7% increase in its consolidated net profit at Rs 1 billion in the first quarter of FY21. Net income declined by 8.8% YoY. Expenses also remained lower 10.5% YoY. Recently, the company had announced purchase of an additional 0.9% stake in its subsidiary, Godrej Maxximilk. With this, Godrej Agrovet's total shareholding in Godrej Maxximilk has increased from 74% to 74.9%.

Yes Bank will also be in focus today as the lender decided to sell its mutual fund business as it plans to focus on its core businesses. The bank, which was taken over by lenders led by State Bank of India as part of a rescue package, has received proposals from six entities expressing interest to takeover Yes Mutual Fund, which had assets under management of Rs 570 million as of June 2020, down from Rs 20 billion in March 2019.

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Market participants will also track shares of other auto and auto ancillary companies as automakers reported encouraging sales numbers for July.

Maruti Suzuki announced it had sold 108,000 units in July, 88.2% more than June 2020, in a clear indication that people were rushing to buy new cars as the coronavirus-induced lockdown eased, and opting for private transport to maintain social distancing.

Mahindra and Mahindra sold 25,678 units of commercial and passenger vehicles in July 2020, indicating a month-on-month growth of 32.64%.

India's largest two-wheeler company, Hero MotoCorp registered a sequential growth of 14% over the previous month (June 2020) and reached more than 95% of wholesale dispatch numbers of the corresponding month in the previous year (July 2019).

India Manufacturing PMI Slips in July after June Rebound

Indian manufacturing slowed down in July after slowly mending for two months as lockdowns to contain coronavirus cases weighed on demand and output and raised the chances of a sharper economic contraction.

Output contracted in July as regional lockdown extensions across the country severely held back demand, said the monthly IHS Markit India Manufacturing Purchasing Managers' Index (PMI) survey.

Manufacturing PMI stood at 46 in July, down from 47.2 in June. In PMI parlance, a score above 50 means expansion and below that denotes contraction. PMI fell to a historic low of 27.4 in April, but had been steadily climbing up since.

Businesses collapsed and exports slowed when India was locked down to contain the coronavirus and worldwide economies collapsed. The PMI survey showed manufacturers cut jobs yet again, albeit at a similar pace than June.

New orders fell for the fourth-month running. Similar to the trend for output, the pace of decline accelerated from June, but remained slower than at the height of the current crisis.

However, the PMI survey showed that manufacturers remained optimistic towards the one-year business outlook in July, with sentiment strengthened for the second month to a five-month high.

How this trend pans out in coming months remains to be seen. We will keep you updated on the latest developments from this space. Stay tuned.

Franklin Templeton MF Debt Schemes See Dip in NAV

In news from the mutual funds space, four debt schemes of Franklin Templeton Mutual Fund (MF) that are winding up saw up to 4.85% decline in their net asset value (NAV) on Friday, following payment defaults by two Future Group firms - Nufutre Digital (NDIL) and Future Ideas (FCIL).

Of the six schemes that are under wind-up, four are exposed to NDIL, FCIL, and Rivaaz Trade Ventures (RTVPL). While the latter was able to meet its dues on Thursday, the other two missed their payment obligations.

In a note, the fund house said, "due to default in payment, the securities of FICL and NDIL will be valued at zero basis AMFI standard hair cut matrix, and interest accrued and due will be fully provided".

Franklin MF schemes have already taken a 25% markdown on exposure to RTVPL, in line with the valuation matrix. This was after the non-convertible debentures (NCDs) of the firms were downgraded to BB+ by Brickwork Ratings.

The fund house said the Future Group firms could benefit if Reliance Industries bought a controlling stake in Future Group's retail business.

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