Sensex gains 234 points, Nifty ends above 11,650; Yes Bank, Tata Motors rally
16 Jul 2019
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Market Closing
Benchmark indices closed strong with the Sensex rising 234.33 points to 39,131.04 and the Nifty50 climbing 72.70 points to 11,661.05 as all sectoral indices were higher except IT which lost over half a percent.
The market breadth was negative as about 1,285 shares declined against 1,149 advancing shares on the BSE.
The Nifty Midcap index gained 0.7 percent while the Nifty Smallcap index ended flat.
The Nifty Bank, Auto, FMCG and Metal indices climbed 0.4-1 percent while Pharma rallied 1.5 percent and Realty surged 2 percent.
Sensex jumps 250 pts:
Benchmark indices rallied further in last hour of trade. The BSE Sensex climbed 250.65 points to 39,147.36 and the Nifty50 rose 71.50 points to 11,659.90 but the market breadth was in favour of bears.
About six shares declined for every five shares rising on the BSE.
Earnings
Federal Bank's first quarter net profit grew by 46.2 percent year-on-year to Rs 384.2 crore and net interest income increased 17.8 percent to Rs 1,154.2 crore.
TV18 Broadcast Q1 Earnings
TV18 Broadcast posted a profit of Rs 18.64 crore for the quarter ended June 2019, against loss of Rs 12.48 crore in same period last fiscal.
Consolidated operating revenue during the quarter grew by 10 percent to Rs 1,198 crore, compared to Rs 1,088 crore in corresponding period last year.
Subscription revenue increased significantly by 48 percent to Rs 424 crore in June quarter and operating EBITDA grew by 96 percent to Rs 77 crore.
Yes Bank Jumps 8%
Yes Bank shares rallied nearly 8 percent intraday after a media report indicated that private equity firms showed interest for major stake in the private sector lender.
"US-based private equity investor made an offer to acquire a $850 million stake in the bank, the term sheet offer for which was made over the weekend," The Economic Times said quoting unnamed sources.
"There are three more PE players in the consortium, two US-based and two domestic. The consortium leader may pick a 10 percent stake in the bank, while the rest may together pick another 10 percent," the report added.
Market Update:
Benchmark indices remained in a positive terrain in afternoon with the Sensex rising 152.60 points to 39,049.31 and the Nifty50 climbing 47.50 points to 11,635.90.
Management Interview
MR Jaishankar, Chairman and MD, Brigade Enterprises told CNBC-TV18 that promoter's stake will increase to 50 percent after warrant conversion.
Promoter stake is currently at 46.84 percent in Brigade Enterprises.
"Talks to sell hospitality business to private equity are still underway. We are targetting completion of hospitality business sale in this fiscal," he said, adding the company will not use the funds infused by promoters to reduce debt.
FADA on Auto Sales;
Federation of Automobile Dealers Associations? said June quarter ended on a negative note with total vehicle registrations down 6 percent YoY.
Commercial vehicle segment showed a 14 percent decline, followed by 2-wheeler at 6.4 percent fall and 3-wheeler at 6.1 percent while passenger vehicle fell the least with 1 percent In Q1, it added.
In June, sales were negative both YoY & MoM.
Federal-Mogul in focus
Tenneco has filed an appeal with Securities Appellate Tribunal w.r.t open offer for Federal-Mougl's shares.
Tenneco had launched an open offer for 25 percent stake in company.
M&M Falls 2%
Mahindra and Mahindra shares fell 2 percent intraday after global brokerage house CLSA downgraded its rating on the stock to sell from underperform, citing weak earnings growth ahead.
The investment firm also slashed its target price to Rs 590 from Rs 690 per share.
Technical Outlook
"The Nifty has consolidated in a range since last few sessions in which the earlier support of 11,640 has been acting as a resistance now. Hence, the index needs to convincingly surpass the hurdle of 11,640-11,700 to regain any strength," Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel Broking said.
"On the flipside, 11,460-11,430 is the immediate support range to watch out for. From a near term perspective, the index is locked in a range which could be termed as a time-wise correction and until we see a breakout in either direction, traders should focus on a stock specific approach," he added.
Sensex Reclaims 39,000:
Benchmark indices extended gains despite mixed trade in Asian peers. The BSE Sensex was up 162.11 points at 39,058.82 and the Nifty50 rose 47.50 points to 11,635.90.
About 829 shares advanced against 714 declining shares on the BSE.
Vakrangee Jumps 5%
Vakrangee shares rallied 5 percent intraday after company decided to set up electric vehicle charging infrastructure across India.
The company will set up the charging infrastructure facility through its Nextgen Vakrangee Kendra outlets.
Vakrangee has 3,504 Nextgen Vakrangee Kendra's spread across 19 states, 366 districts and 2,186 postal codes. More than 68% outlets are from Tier 5 and tier 6 cities.
"Our planned target is to reach at least 75,000 by FY2021-22 and 3,00,000 outlets by FY2024-25," company said in its BSE filing.
Nifty Above 11,600:
Benchmark indices gained strength a bit with the Nifty trading above 11,600 levels and the Sensex inching towards 39,000.
The BSE Sensex was up 71.83 points at 38,968.54 and the Nifty gained 20.80 points at 11,609.20.
Market Opening:
Benchmark indices opened flat on July 16 as traders await more corporate earnings scheduled to be announced over next month.
The Sensex was up 2.48 points at 38,899.19 while the Nifty fell 1.40 points to 11,587.
Page Industries in Focus
Cartica Capital sold 2.03 percent stake in company during February 14-July 12, 2019. After stake sale, Cartica Capital now holds 2.98 percent stake against 5.01 percent in October 2018.
Rupee Opening
The Indian rupee opened lower at 68.56 against the US dollar, down 3 paise compared to Monday's close of 68.53 a dollar.
Cummins India in Action
Company said Sandeep Sinha, Managing Director of the company has tendered his resignation to pursue a career outside of the company.
Market Pre-Opening Trade
Benchmark indices traded higher in pre-opening tick. The BSE Sensex was up 140.63 points at 39,037.34 and the Nifty50 gained 11 points at 11,599.40.
