Share Market Highlights: Sensex ends 588 points higher, Nifty at 11,300; Kotak Bank, TCS top gainers

Sensex, Nifty Highlights on July 28: Sensex and Nifty ended on a bullish note on Tuesday, amid positive global euities and healthy buying interest throughout the session. Sensex closed 588 points higher at 38,492 and Nifty was rising 168 points higher at 11,300. Yesterday, Sensex closed 194 points lower at 37,934 and Nifty fell 62 points to 11,131. Traders said markets will continue taking cues from the worldwide trend.

Here's a look at the updates of the market action on BSE and NSE today

3.45 PM: Closing session

Sensex and Nifty ended on a bullsih note on Tuesday, bucking yesterday's losses as Asian and European equities reversed trend and turned bullish. Sensex closed 588 points higher at 38,492 and Nifty was rising 168 points higher at 11,300.

3. 26 PM: Market outlook

Ajit Mishra, VP-Research, Religare Broking said," Going ahead, the FOMC meet outcome (on 29th July) would be one of the key events to watch out for. Besides, the key economic data points would provide more clarity on the recovery in the economy. On the domestic front, earnings announcements from companies and auto sales numbers would be on investors' radar. We advise continuing with a positive yet cautious approach as Nifty is inching closer to the next hurdle at 10,350 levels."

3. 17 PM: Nifty outlook

 Vinod Nair, Head of Research at Geojit Financial Services said,"Indian benchmark indices closed up by around 1.4%, with Auto and IT constituents contributing the most to the gains. Some of the stocks rallied on the basis of their earnings results with operating margins and earnings visibility being the key notables. Globally, there was an expectation that the US Fed would continue with its dovish policy stance, which would ensure liquidity, especially into emerging markets like India. Liquidity has been a key driver for the market performance, and the Fed decision is likely to be greeted positively. The advice to remain cautious remains and investors must accumulate only quality stocks."

3.09 PM: Rupee ends unchanged

Rupee, the local currency, ended unchnaged at 74.83 per dollar today

2. 48 PM: Market gains momentum

Sensex was trading 531 points higher at 38,465 and Nifty was rising 157 points higher at 11,294.

2. 36 PM: Nifty outlook

On Nifty's outlook, Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking) said,"As far as Nifty is concerned, we continue to see 11050 as a sacrosanct support and till the time it trades convincingly above it, there is no reason to worry. On the flip side, if this lead has to extend, the benchmark needs to stay beyond 11250, which would unfold the next leg of the rally. Meanwhile, the range of 11250-11050 should be considered a consolidation band. Now, the breakout in either direction is solely dependent on how Bank Nifty performs over the next couple of days. If banking heavyweights extend their correction, the Nifty will see a breakdown; whereas a breakout above 11250 is out of question without the contribution of banking space."

2. 24 PM: Tech Mahindra shares rise 6% post result

Tech Mahindra share price was trading as the top gainer on bothe bourses BSE, NSE today after the company reported healthy set of results for the quarter ended June, 2020. The company reported 20% growth in its net profit at Rs 972.3 crore in Q1FY21, from Rs 803.9 crore in the previous quarter. The profit was up 1.35% YoY.

Following the result update, Tech Mahindra shares gained 5.78% to the intraday high of Rs 702.4 o nBSE, as against the earlier closing of Rs 664.05. The stock also hit an intraday low of Rs 668 during today's session, after opening at Rs 672. The stock price of the IT major has risen 9.52% in the last 4 days of straight gains.

2. 17 PM: Mandhana Retail Ventures share

Ace investor Rakesh Jhunjhunwala has lost Rs 40 crore in three years as share price of one of his key holdings Mandhana Retail Ventures fell nearly 94% during the period. At the end of June quarter this year, Jhunjhunwala held 28.13 lakh shares or 12.74% stake in the retail venture of Mandhana Industries.  Share price of the firm fell to Rs 9.62 on June 30, 2020. That valued his stake at Rs 2.70 crore in Q1.

Rakesh Jhunjhunwala lost Rs 40 crore with this stock in three years

2.03 PM: Tech Mahindra outlook

ICICI Securities in its note said," We believe its leadership in the communication vertical will make it a key beneficiary of vendor consolidation in the segment. It would also benefit from 5G opportunities. Enterprise segment will also benefit from improved digital traction and success in large deals. Hence, we remain positive on the stock".

1. 42 PM: Market rises further

Sensex and Nifty rose majorly by the afternoon session on Tuesday, bucking yesterday's losses as Asian and European equities reversed trend and turned bullsih. Sensex was trading 402 points higher at 38,340 and Nifty was rising 121 points higher at 11,254.

1. 30 PM: BEL outlook

Commenting on BEL Q1FY21 results, Jyoti Roy, DVP- Equity Strategist, Angel Broking said, " Bharat Electronics Ltd. (BEL) reported a weak set of numbers for Q1FY21 as execution was impacted during the quarter due to lockdowns. Revenue for the quarter was down by 21.1% YoY to  Rs 1,676 crore as compared to revenues of Rs 2,125 crore for Q1FY20. EBIDTA for the quarter was down by 58.9% YoY to  Rs 146 crore while EBIDTA margins contracted by ~800 basis points to 8.72%. Net profit for the quarter was down by 56.9% YoY to Rs 73.9 crore. BEL reported an order inflow of around Rs 3,500 crore for the quarter and has an order backlog of Rs 53,752 as of Q1FY21 as compared to Rs 51,970 crore at the end of FY2020. We are positive on the prospects of the company despite a muted Q1 as it has been able to garner good order booking during the quarter despite the lockdowns which provides strong revenue visibility going forward."

1.17 PM: ITC outlook

On ITC's Q1 FY21 results, Centrum Broking said,"We believe, renewed focus on maintaining cigarette market share, tailwinds for FMCG business, strong FCF, high dividend yield and compelling valuations make it more attractive for long term investors. Considering strong tailwinds for other-FMCG and significant cost optimization in cigarette segment, we increase revenue/ PAT estimates for FY21E/22E by 5.7%/9.2% and 5.5%/13.7%. We maintain Buy rating with DCF-based revised Target price Rs.257, implying 18.6x FY22E EPS. Key risks are sharp increase in any form of taxation, higher leaf tobacco prices and reinitiated shutdowns."

12. 49 PM: Tech Mahindra result update

Commenting on Q1 FY21 reaults of Tech Mahindra, Jyoti Roy, DVP- Equity Strategist, Angel Broking said,"Tech Mahindra reported a 6.7% qoq degrowth in revenues to USD 1,208mn which was marginally above street expectations. In rupee terms consolidated revenue contracted by 4.0% qoq to Rs 9,106 crore while gross profits declined by 7.2% qoq to Rs 2,596 crore.  EBIDTA for the quarter was down by 3.5% qoq to Rs 1,300 crore while margins were down by ~10bps qoq to 14.3%. Net profit for the quarter was up by 21% qoq to Rs 972 crore which was ahead of street estimate largely on account of higher other income for the quarter along with few one off expenses last quarter which had led to a lower base. New deal wins for the quarter were also down to USD 290mn as compared to USD 513mn inQ4FY20. While the Q1FY21 results were largely ahead of street estimates concerns remain over the company's over dependence on the communications vertical which accounts for 40% of the company's revenues and degrew by 8.6% qoq in USD terms.

12. 34 PM: Bajaj Auto result valuation

Commenting on Q1 earnings of Bajaj Auto, Ashwin Patil, Senior Research Analyst at LKP Securities said," Bajaj came out with a better than expected numbers in Q1, thanks to its strength in the exports markets. Going forward, as the nation is opening up and unlocking itself, things will start to improve. With intrinsic demand getting back almost to the pre-COVID level production/supply constraints still persist to some extent. 2W demand in the domestic markets is expected to continue its uptrend with strong rural demand driven by good monsoons. We expect a good festive season with pent up demand coming into foray. On the low base of FY 21, we anticipate a strong FY 22E. With exports improvement expected to continue and high margin models to sell well in domestic markets, margins are expected to improve. With ultimate demand for personal mobility playing on, we expect Bajaj to get its advantage. With strong balance sheet, robust return ratios and zero financial leverage, we believe the stock looks attractive even at 16x FY 22E earnings. We maintain our BUY rating on the stock with a target price of Rs.3,342 (at 18x FY 22E earnings)."

12. 27 PM: Gold price scales fresh all-time high, silver hits Rs 67,560

Gold price surpassed the Rs 52,000 mark and hit a record high today, tracking gains from overseas amid rising coronavirus cases and ongoing tensions between the US and China. Hopes of additional stimulus helped the yellow metal stay in demand. The yellow metal (Comex Gold) was trading 0.03% higher at $1,931 per ounce on Friday in overseas markets. Spot gold traded $40 higher at $1,980 an ounce, after rising almost by $ 130 in a week's period. Silver futures were trading at $26.16 today.

Gold price scales fresh all-time high, silver hits Rs 67,560

12. 12PM : Nifty outlook by Angel Broking

Angel Broking in its note on Nifty's near term technical indictors, said," As far as Nifty is concerned, we continue to see 11050 as a sacrosanct support and till the time it trades convincingly above it, there is no reason to worry. On the flip side, if this lead has to extend, the benchmark needs to stay beyond 11250, which would unfold the next leg of the rally. Meanwhile, the range of 11250-11050 should be considered a consolidation band. Now, the breakout in either direction is solely dependent on how Bank Nifty performs over the next couple of days."

12.04 PM: Rupee opens 4 paise higher

The Indian rupee gained 4 paise to trade at 74.79 per dollar on Tuesday amid caution ahead of the two-day US Federal Reserve's meeting. At the interbank forex market, the rupee was trading in a narrow range.

It opened at 74.86 against the US dollar but soon recovered the lost ground and touched 74.79 against the US dollar, up 4 paise over its last close of 74.83.

Rupee gains 4 paise to 74.79 per dollar ahead of US Fed meet outcome

11. 44 AM: YES Bank falls for the seventh session

Yes Bank share price on Tuesday fell for seventh straight session to its day's low of Rs 11.10, below its follow-on public offer price of Rs 12.

The stock price of YES Bank plunged to the intraday low of Rs 11.10 at the opening trade today, down 9.7% as against the previous closing value of Rs 12.30 on BSE. The stock also touched an intraday high at Rs 11.90.

YES Bank stock falls below FPO price, loses for 7th straight session

11. 22 AM: Retail investors may be allowed to transact directly

Market regulator Securities and Exchange Board of India (Sebi) is planning to allow direct market access to retail investors. If the regulator goes ahead with the decision, business of brokerages will be affected adversely. Currently, retail investors cannot buy or sell shares directly through stock exchanges.

Investors are able to transact in shares after subscribing to membership of brokerages. According to reports, the role of brokers will be completely eliminated in the new direct market access system. India has several brokers who act as intermediaries between retails investors and the stock exchanges.

Zero brokerage! Retail investors may be allowed to transact directly through stock exchanges

11.02 AM: Stocks to watch today on July 28

United Spirits, Tech Mahindra, Bharti Infratel, Pfizer, M&M Financial, ITC among others are the top stocks to watch out for in Tuesday's trading session.

Stocks in news: United Spirits, Tech Mahindra, Bharti Infratel, Pfizer, M&M Financial, ITC

10. 58 AM: Oil price rises today

Oil price moved slightly higher backed by weak dollar and US stimulus package but gains were capped by rising coronavirus cases and US-China tensions. Brent crude futures edged up 5 cents to $43.46 a barrel, while U.S. crude eased 7 cents to $41.53.

10. 33 AM: Global bourses

Asian markets reversed the trend and were marginally higher on Tuesday as investors continued to watch for developments on vaccine front and fresh stimulus packages.

Wall Street closed higher on Monday, supported by US Senator unveiling the Republican coronavirus relief plan.

European markets closed slightly lower as US-China tensions continued to worry investors.

10. 28 AM: Dollar declines

Tightening social restrictions and job losses has also dragged on the US dollar, besides hopes desperately needed stimulus extension, that has led the dollar to fall to a two-year trough as against the basket of currencies at 93.416 before steadying at 93.793.

10.12 AM: Coronavirus toll

In India, domestic coronavirus cases saw a record jump of nearly 45,000 infections over the last 24 hours and came to 14.8 lakh by Tuesday morning, with total deaths standing at 0.33 lakh. Worldwide, there are 166 lakh confirmed cases and 6.56 lakh deaths from the coronavirus COVID-19 outbreak.4

10. 02 AM: Shaktikanta Das' assures industries

Reserve Bank of India (RBI) Governor Shaktikanta Das on Monday assured the industries that the central bank was closely monitoring the economic situation. He also said that the central bank will not hesitate to take appropriate action, as he highlighted the need for stepping up investment in the infrastructure sector to reignite growth hit by the coronavirus crisis.

9. 54 AM: Market indicators

"The short term trend of Nifty is range bound with weak bias. The momentum in the market could expand only a sustainable move beyond the range of 11,250 and 11,050 levels in the short term. Upside breakout could pull Nifty towards 11,550 and a downside breakout of the range open lower target of 10,900-10,850 in the near term," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

9. 44 AM: Market rises further

Benchmark indices gained further momentum by the first hour of trade. Sensex was up 232 points at 38,162 and Nifty gained 72 points to 11,211.

9. 36 PM: Nifty outlook

Reliance Smart Money in its daily report  said," NSE-NIFTY begun week on a dull note as the index remained sideways in absence of positive triggers in the market. Yesterday, rate sensitive sectors kept index in pressure, however due to strength in the IT sector restricted the loss. As mentioned earlier, we continue to believe the index will either remain sideways or it will face minor decline before resumes its northward journey. On the higher side, the index will face hurdles around 11,270 and 11,400 levels, where prior positive gaps are placed. However, in case of decline, the index will initially find support at around 10,860 mark and then at around 10,560 level.

As for the day, support is placed at around 11,071 and then at 11,011 levels, while resistance is observed at 11,209 and then at 11,285 levels."

9. 28 PM: Market outlook

"Hopes for more stimulus measures in major economies and data showing that China's industrial profits rose in June for a second straight month helped offset worries about rising US-China tensions and the surge in coronavirus cases worldwide. European markets declined marginally on Monday morning as investors continue to watch rising diplomatic tensions between the US and China, while travel stocks tumbled after the UK imposed quarantine measures on people returning from Spain," said Deepak Jasani, Head Retail Research, HDFC Securities.

9. 12 AM: Gold hits new high

Gold futures on Multi Commodity Exchange were trading Rs 299 points higher at Rs 52,400 per 10 gm for the first time ever against the previous close of Rs 52,101 per 10 gm. Earlier today, Gold August Futures today touched an intraday as well as an all-time high of Rs 52,420 and a low of Rs 52,071 today, after opening at Rs 52,186 per 10 gm.

9.07 AM: Pre open session

Sensex and Nifty opened on a bullish note on Tuesday, bucking yesterday's losses amid positive global equities.  Sensex was trading 112 points higher at 38,047 and Nifty was rising 27 points higher at 11,169.

8. 54 AM: Market outlook

Ajit Mishra, VP - Research, Religare Broking said,"RBI's recent statements over a possible rise in NPAs in FY21 spooked investor sentiments. However, strength in IT and Oil & Gas names managed to restrict the losses for Nifty as it ended lower by 0.6% to close at 11,132 levels. Meanwhile, earnings announcements from select Nifty majors and upcoming derivatives expiry of July month contracts will keep the participants busy. Globally, the US Fed meeting scheduled this week and key economic data announcements will also be on their radar.

8. 45 AM: Earnings today

UltraTech Cement, Nestle India, IDBI Bank, IDFC First Bank, RBL Bank, Hexaware Technologies, NIIT Technologies, Quess Corp, Castrol India, Greenlam Industries, Max Ventures, Sunteck Realty, Tata Coffee, Welspun Corp, among others will report Q1 earnings today.

8. 49 0 AM: Market outlook by experts

"Technically, Nifty formed a bearish candle today. Overall while declines are being bought, follow up is missing at higher levels. It requires a decisive range breakout for the next leg of rally. Stock specific action is likely to continue with a lot of heavyweights reporting their earnings over the next few days. Investors would also watch out for commentary from the US Fed monetary policy meeting on Wednesday," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Service.

8. 35 AM: Technical indicators

In terms of technical indicators, 11,050 and 11,035 has now become key supports, while 11,275-390  is the level of resistance in upside momentum. A move about this will give breakout in an upward direction to extend the move towards 11,350-11,400.

8. 30 AM: Closing on Monday

Sensex and Nifty started the week on a bearish note closing lower on Monday as RBI predicted a rise in bad loans by 15% of total loans by March 21. Sensex closed 194 points lower at 37,934 and Nifty fell 62 points to 11,131.

Sensex falls 194 points, Nifty at 11,131; banks crash on RBI's bad loans forecast