- Mumbai: Indian benchmark indices BSE Sensex and NSE’s Nifty 50 gained on Thursday, taking cues from Asian stocks. The Indian Rupee weakened along with most Asian emerging currencies against US dollar as US yields climb. Asian shares made early gains as upbeat Wall Street earnings supported global investor sentiment. The dollar retreated from a three-week high. Oil prices rose 1% overnight after US government data indicated bullish demand for gasoline and distillates. Here are the latest updates from the markets:
12.55 pm ISTEuropean stock markets steady at openEurope’s main stock markets steadied at the start of trading on Thursday, with London’s benchmark FTSE 100 index down 0.2% at 7,665.14 points. In the eurozone, Frankfurt’s DAX 30 index was flat at 12,740.68 points and the Paris CAC 40 slipped 0.2% to 5,437.71 compared with Wednesday’s closing levels. AFP12.42 pm ISTIndian mid-cap IT stocks down on valuation correctionShares of MindTree Ltd, Larsen and Toubro Infotech Ltd and Hexaware Technologies Ltd fall between 4.3% and 11.5%. The PE ratio of MindTree stands at 30.97, Hexaware at 30.31 and L&T Infotech at 29.29 compared with sector average of 21.26. MindTree’s stock posts biggest daily percent loss since 9 November 2016.“Mid-cap IT stocks are facing valuation correction as they were trading at very high valuations compared with their historical averages,” said Sudheer Guntupalli, a technology sector analyst, Ambit Capital. “The markets were building in strong margin expansion for Q2 but with management expecting “slight” improvement over Q1, it could be seen as a concern,” Guntupalli said. Reuters11.50 am ISTRBL Bank shares fall 2% after Q1 resultsShares of RBL Bank Ltd fell 1.99% to Rs 553.70. RBL Bank Ltd on Thursday reported a 34.8% year on year increase in its June quarter net profit due to higher net interest income and other income. Net profit for the quarter stood at Rs190.04 crore against Rs141.02 crore a year ago. According to 7 Bloomberg analysts’ estimates, the bank was expected to post a profit of Rs 191 crore.
- 11.30 am ISTCompetitive intensity to remain high in Indian telecom space: JefferiesJefferies remains cautious on telecom sector as it expects competitive intensity to remain high as fight for market share continues. The brokerage says Q1 results in the telecom sector will be muted, with ARPU down between 4-7% q-o-q and sub addition remaining low. It also expects incumbents to report margin decline of more than 200bps q-o-q and report losses.Jefferies further expects Airtel’s Q1 revenues to rise 3% q-o-q led by Telenor consolidation. Mobile ARPU could fall over 7% q-o-q and margins to decline 230 bps q-o-q led by moderation across all key business, added the brokerage.Idea is likely to report 3% q-o-q fall in revenue in Q1 led by decline in ARPU and expect margins to fall 280 bps q-o-q to below 14%, noted Jefferies. It expect recovery post equilibrium (post-mid-FY20) to be gradual and ARPU increases will require investment in both capacity and content.India’s mobile phone customer base rose 0.53% to 1.13 billion in May, data released by telecoms regulator showed. In May, Bharti Airtel Ltd added 35.9 million subscribers led largely by Telenor merger, and Reliance Jio added 9.4 million subscribers, while Idea Cellular Ltd lost 2.5 million subscribers. Reuters
- 11.08 am ISTMarket optimism before 2019 general election: History may not repeat itselfThe 2019 general election is a significant domestic cue for the stock market. As the chart shows, at first glance it seems as if the Indian equity market has been generally upbeat before the elections. It was only in 2009, during the financial crisis, that the market fell. Does that mean the market is naturally optimistic before elections? Read more
Graphic: Naveen Kumar Saini/Mint - 10.35 am ISTOil prices mixed as producers adding more oilOil prices were mixed as the market struggled to digest signs of strong gasoline demand in US, the world’s biggest consumer of the fuel, with a statement from oil producers that they are putting more crude on the market. Brent crude futures fell 11 cents, or 0.2%, to $72.79 a barrel. WTI crude futures climbed 6 cents, or 0.1%, to $68.82.Both benchmarks rose by 1 percent on Wednesday after inventory data from the U.S. Energy Information Administration reported on Wednesday U.S. gasoline stockpiles fell along with supplies of distillate fuels. Motor fuel demand also rose from the week before and was up from a year earlier. Reuters
- 9.55 am ISTBandhan Bank’s share defies gravity as growth story is intactBandhan Bank stock is already trading at a rich multiple of 5.3 times its estimated book value for FY20. But analysts are still gung-ho on the bank
Bandhan Bank’s share defies gravity as growth story is intact bit.ly/2O37EI7
- 9.37 am ISTJK Tyre shares gain 4% after Q1 earningsJK Tyre and Industries Ltd shares rose 4% to Rs 130 after the company reported a consolidated net profit of Rs67 crore for the first quarter ended June 30, against a net loss of Rs 118 crore in the corresponding period last year. Revenues rose 26% to Rs 2,446 crore.
- 9.28 am ISTYes Bank shares down 1% as Sebi looking into Yes Bank-UBS disputeYes Bank Ltd shares fell 1% to Rs 380 after Mint reported that Sebi is examining a Yes Bank communication directing UBS Group’s Indian arm to drop coverage of the bank for potential violation of securities laws. Yes Bank, in an email, asked UBS in the last week of June to drop coverage of the bank following a 21 May UBS research report on eight Indian banks for its clients which claimed that Yes Bank had the highest credit exposure to the troubled power sector.
- 9.25 am ISTONGC shares gain 3% as board OKs Pawan Hans saleShares of Oil and Natural Gas Corp. Ltd rose 3% to Rs 164.85 after the company said its board has approved exiting helicopter service provider Pawan Hans by selling its entire 49% stake as it looks to cut debt and consolidate resources in its core oil and gas business. ONGC wants its interest to be clubbed with the 51% government stake that is already on offer for sale.
- 9.18 am ISTSensex, Nifty open higherBSE Sensex traded higher by 66.72 points, or 0.18%, to 36,440.16, while the Nifty 50 edged up 6.60 points, or 0.06%, to 10,987.05.
- 9.15 am ISTRupee opens lower against US dollarThe Indian Rupee weakened along with most Asian emerging currencies against US dollar as US yields climb. At 9.15am, the rupee was trading at 68.72 a dollar, down 0.13% from its previous close of 68.62. The currency opened at 68.68 a dollar and touched a high and a low of 68.68 and 68.72, respectively. So far this year, the rupee has weakened 7.1%, while foreign investors have sold $964.30 million and $6.36 billion in equity and debt markets, respectively.The 10-year bond yield stood at 7.779%, from its Wednesday’s close of 7.774%. Bond yields and prices move in opposite directions.
- 9.03 am ISTOpening bell: Cues to look out for before trading today■ US stocks rose as Wall Street cheered strong quarterly results from Morgan Stanley and CSX. Asian shares carved out moderate gains in early trade, taking cues from Wall Street’s overnight advance as investors there parsed through stronger-than-expected corporate earnings.■ The National Democratic Alliance (NDA) government has decided to withdraw the contentious Financial Resolution and Deposit Insurance Bill 2017, or FRDI Bill, and is awaiting the cabinet’s nod to move Parliament for this as the government looks to avoid controversial legislation ahead of the 2019 general election.■ The country’s largest drug maker, Sun Pharmaceutical Industries Ltd, has received its first approval in five years for a product manufactured at its Halol, Gujarat, plant from the USFDA.■ The board of ONGC has approved exiting helicopter service provider Pawan Hans by selling its entire 49% stake as it looks to cut debt and consolidate resources in its core oil and gas business, officials with direct knowledge of the development said.■ The government decided to increase the minimum price sugar mills pay to cane growers by Rs20 per quintal to Rs275 per quintal for the next marketing year starting October, sources said.■ Bandhan Bank Ltd reported a 47.5% jump in its June-quarter net profit due to higher other income and net interest income. Net profit for the quarter stood at Rs 481.71 crore against Rs 326.56 crore a year ago.■ InterGlobe Aviation’s IndiGo retained its position as the market leader among domestic airlines as it carried 46.73 lakh local passengers in June, achieving a market share of 41.3%, according to the data issued by civil aviation regulator, Directorate General of Civil Aviation (DGCA).■ Earnings Calendar: ABB, Bajaj Finance and Kotak Mahindra Bank are among the companies that will be announcing their June quarter earnings today.
Source: Livemint
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