Share Market Highlights: Sensex ends 398 points higher, Nifty at 11,022; Wipro, Infosys top gainers

Sensex, Nifty Updates: Barring weak global equities, Sensex and Nifty closed majorly positive on Monday, amid heavy buying in IT heavyweights amid Q1 earnings season. Extending last week's gains, Sensex ended 398 points higher at 37,418 and Nifty ended 120 points to 11,022. Last Friday, while Sensex ended 548 points higher at 37,020, Nifty rose 161 points to 10,90.

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

4.13 PM: Market Quote 

Commenting on markets, Vinod Nair, Head of Research at Geojit Financial Services said, "The Indian benchmark indices exhibited volatility, tracking earnings results and the SC AGR hearing. Nifty continued its momentum and closed above the 11000 mark. This was in spite of increasing virus infections, both in India and abroad. The earnings results declared so far have been positive, as the sectoral leaders, especially  in the IT and Banking sector, have emerged better than expected in a quarter that was considered to be a washout, in terms of business. These 2 indices were also the main gainers in today's trade. Uptrend may continue but it will be stock specific and investors seem to be looking at the earnings commentary for further direction."

3. 45 PM: Closing

Barring weak global equities, Sensex and Nifty closed majorly positive on Monday, amid heavy buying in IT heavyweights amid Q1 earnings season. Extending last week's gains, Sensex ended 398 points higher at 37,418 and Nifty ended 120 points to 11,022.

3. 25 PM: Larsen & Toubro Infotech Q1 earnings update

On Larsen & Toubro Infotech's Q1 resu;lts, Centrum Broking said,"We expect Free cash flow for FY21 at Rs13.4bn 3.4% FCF yield). While deal wins in 1QFY21 were tepid, management cited that pipeline remains steady and guided for potential for new deal closures in 2QFY21.  Near term valuations are stretched but LTI is best placed structural play in Midsized IT. LTI now trades at 20.5x FY22E (17.5/15.2/18.7x traded by Mindtree/Mphasis/NIIT Tech respectively). Nevertheless, we maintain directional positive stance in the stock.  Low sharefloat (74.5% promoter holding) is also leading to disproportionate rally in stock owing to scarcity premium. "The brokerage maintained buy rating for the stock, at teh TP of Rs 2,400 per share.

3.01 PM: M&M Financial share price surges over 12%

M&M Financial share price gained over 12% in Monday's early session after the company posted robust numbers for the quarter ended June 2020. Company's consolidated profit after tax (PAT) jumped 300% to Rs 432 crore during the quarter ended June 30, 2020, as against Rs 108 crore during the corresponding quarter last year. Company's consolidated income grew by 8% to Rs 3,069 crore in Q1 FY21 as against Rs 2,838 crore inthe same period last year. Furthermore, company's board also approved the conditions of an earlier-approved rights issue, for an amount not exceeding Rs 3,500 crore, of fully paid-up equity shares of the face value of Rs 2 each.

2. 49 PM: Bajaj Consumer Care Q1 earnings update

Bajaj Consumer Care, Centrum Broking said," The management said its focus would be on a) strengthening ADHO equity on nourishment b) process improvement c) driving topline through new products d) improving direct distribution e) driving double digit revenue growth and maintaining healthy EBITDA margins."

IT further added," Considering the revenue beat Q1 and reduction in overheads we increase revenue and earnings estimates for FY21E/ FY22E by 4.7%/1.5% and 8.8%/4.2% respectively. We maintain ADD rating with revised DCF based target Price of Rs 191 (implying PE 12.8x FY22E earnings). Risks to our call include over-dependence on ADHO, raw material price inflation and lag between price hikes."

2. 31 PM: Realty sector update

Commenting on realty sector, Dhiraj Jain, Director, Mahagun Group said,"The coming year would see real estate segments recovering to reach the scale of previous demand and supply. There will also be an emergence of projects that will try to meet the requirements of new norm set by COVID-19. Demand is increasing and it will remain potent for quite some time now as people are going for real estate assets for two reasons-self use and source of extra income. Commercial and retail segments will bounce back but the pace of recovery will depend on the willingness of people to come out. Looking at the way people have started visiting malls is an indication that the demand is good".

2. 18 PM: Gold technical outlook

On gold's near term outlook, Geojit Financial in its daily note said, gold is required to continue further upticks towards $1830 followed by $1882 levels. Else, a drop below $1785 expect corrective selloffs which may extended towards $1770 or even more for the day. For MCX Gold August futures, the agency suggested resistance at Rs 49300 and support at Rs 48220.

2. 01 PM: Global cues

Asian markets are trading mixed as investors await China's benchmark lending rate today. Nikkei was down as Japanese exports fell 26.2% in June.

Wall Street closed mildly lower on Friday as investors reacted to weak Q1 earnings data.

European markets opened lower, as investors were cautious ahead of outcome from the EU leaders meet in Brussels to figure out a deal on proposed 750 bln euro.

1. 47 PM: HDFC Bank quote

On HDFC Bank QFY20, Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking said,"Bank reported a mixed set of numbers for Q1FY21, on positive front moratorium, opted 9% of advance, the cost to income declined 400bps to 35%, though it would not sustain, once lockdown completely open some operating cost will increase. On negative front weak other income and retail advance grew 7.2% YoY and declined 3.9% QoQ. Controlled operating expense and, better treasury income helped the bank to report 15% YoY growth of pre-provision profit. Bank took additional 1000cr provision and total provision for Q1 was 3892cr which compressed PBT, however lower tax rate helped bank to report steady PAT growth of 19.6%."

1. 25 PM: Gold Outlook

Commenting on gold's near term outlook, Hareesh V, Head Commodity Research  at Geojit Financial Services said," The bullish outlook on gold will remain intact as new pandemic cases across the globe continue to lift the demand for safe haven assets. A weak US dollar and simmering tensions between US and China will also offer downside support to the metal. Meanwhile, weak physical demand from top consuming countries are likely to limit major upside in the commodity.

On technical outlook (London spot), he added," As long as prices stay above $1770 bullish sentiments are likely to continue with resistance seen at $1830 followed by $1882 levels. The immediate downside reversal point is $1735."

1. 22 PM: Nifty outlook

Geojit Financial in its daily report said, Nifty is at the tip of a broadening wedge pattern and favoured view expects volatility, until 10950 is cleared. But history tells us that an attack of 200SMA from below is usually followed by a 2% penetration, which puts Nifty's upside projected target to be in the 11169 vicinity. This view would be invalidated though, should 10830 give away.

1.11 PM: Brent crude today

Oil price remained steady as case for more economic stimulus package grew amid rising coronavirus cases balancing the fear about demand recovery.

Brent crude futures, fell 0.63% to USD 42.87 per barrel.

12. 58 PM: Muthoot Finance share slips over 4%

Muthoot Finance share fell in early trade today after the NBFC deferred a proposal for stock split considering the current economic situation caused by the corornavirus pandemic. Muthoot Finance stock price slipped 4.48% to Rs 1148.95 against previous close of Rs 1,202 on BSE. Muthoot Finance share opened with a loss of 3.89%  at Rs 1,156 today. The stock is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Muthoot Finance share slips over 4% after board defers stock split plan

12. 30 PM: HDFC share price gains momentum

HDFC share price gains momentum in today's tarde after lender's Managing Director and Chief Executive Officer Aditya Puri, without revealing the name of the candidate said that that his preferred successor is an internal candidate who has spent 25 years at the lender. HDFC Bank had earlier selected the names of internal candidates Sashidhar Jagdishan and Kaizad Bharucha, and Citi's Sunil Garg as the probable candidates.

"He (the successor) has been with us for 25 years, my successor was always in place, at least in my mind, it is up to the RBI now to decide among what we have given to them.." Puri told shareholders at the bank's virtual AGM held on July 18.

HDFC Bank stock rises 5% post Q1 earnings; time to buy, sell or hold?

12. 08 PM: Gold import falls

Gold imports plunged 94% to $688 million (about Rs 5,160 crore) during the first quarter of 2020-21, according to data from the Commerce Ministry. This was due to a significant fall in demand in the wake of the COVID-19 pandemic. India is the largest importer of gold, which mainly caters to the demand of the jewellery industry.

11. 44 AM: MCX gol declines for third session

Gold prices fell for the third session in 4 days in Indian commodity market, tracking steady global prices. On MCX, August gold futures remained choppy after hitting a record high Rs 48,967 per 10 gm earlier this month.

Gold futures on MCX were trading Rs 15 lower at Rs 48,952 per 10 gm today against the previous close of Rs 48,967 per 10 gm. Gold August Futures today touched an intra day high of 48,985 and a low of 48,858 today, after opening at 48,910 per 10 gm.

11. 37 AM: Silver falls today

Silver also edged lower, with futures on MCX declining Rs 24 to Rs 52,845 per 10 kg.

11. 25 AM: Spot gold today

Recently, overseas gold price has remained steady above the 8-year record-high $1,800 per ounce. Comex Gold dropped 0.07% to 1,807 per ounce, Spot gold was steady at $1,808.53 per ounce while US gold futures were remained unchanged at $1,809, supported by a weaker US dollar.

11. 17 AM: HDFC Bank shares gain almost 5% today

Shares of HDFC Bank were trading as top gainer on NSE on Monday after the private lender said it plans to raise up to Rs 50,000 crore through bonds to enhance capital base to fund its business growth.

HDFC stock price has gained 4.8% in one week, 9.55% in one month.

HDFC Bank share price opened with a gain of 3.9% today and later touched an intraday high of Rs 1152.65, rising 4.87% as against the earlier closing value of Rs 1,099.15 on BSE. The stock also touched a low of Rs 1,124.65.

10. 57 AM: Britannia Industries share price hits all-time high

Britannia Industries share price was trading higher today after the FMCG firm announced net profit rose 117 per cent in the April-June quarter. Share price of Britannia Industries opened 2.38% higher at Rs 3,874 against previous close of Rs 3,784 today.  The share gained 5.31% to Rs 3,985, a fresh all-time high  on BSE.

Britannia Industries share price hits all-time high post Q1 earnings

10. 49 MA: Asian markets turn red

Asian shares were mostly lower on Monday as investors were cautious ahead of the summit of European leaders discussing the pandemic crisis. Soaring coronavirus cases in the US and other parts of the world continued to keep the investors edgy as well.'

10. 34 AM: Market erases gains

Sensex and Nifty were trading positively although erased early gains on back of mixed Asian equity markets. Sensex traded 255 points higher at 37,275 and Nifty gained 71 points to 10,971.

10. 13 AM: Rupee opens 12 paise higher

Rupee rises 10 paise to 74.92 against US dollar in early trade

9. 56 AM: Coronavirus toll

In India, the total number of coronavirus cases surpassed 11 lakh and death toll has topped 27,000, with recoveries standing at 6,77,422

Worldwide, 14,633,412 people are suffering through the deadly disease COVID-19, and 608,542 have died.

9. 40 AM: Stocks to watch today on July 20:

HDFC Bank, Canara Bank, Muthoot Finance, Vodafone Idea, YES Bank among others are the top stocks to watch out for in Monday's trading session.

Stocks in news: HDFC Bank, Canara Bank, Muthoot Finance, Vodafone Idea, YES Bank

9.28 AM: Global cues

SGX Nifty was rising 13 points higher at 10,942, indicating positive trend in domestic grounds today.

In Asian counterparts, barring Japan's Nikkei and Singapore's Strait Times, all the other major indices opened the week higher. Wall Street ended positive last week suppressing concerns over rising US coronavirus cases, cushioned by hopes for an early vaccine that managed to keep the momentum upward. European indices closed mostly in green, are tracking positive global cues.

9. 12 AM: Opening session

Sensex and Nifty opened on a bullish note on Monday, extending last week's gains amid positive global equities. Sensex gained 403 points higher to 37,423 and Nifty gained 90 points to 10,992.

9.00 AM: India Vix

India VIX, a fear gauge index, fell further to 24 levels, lowest since 05 March 2020. HDFC Securities said in its note and added that, "This indicates that expectation of volatility has reduced significantly. This in turn indicates the possibility of a sharp fall in the market has also reduced as compared to the last few months."

8. 50 AM: Q1 Earnings

On the earnings front, while most of the major result announcements have been published for the quarter ended March 2020, investors will keep an eye on the shares of companies now publishing financial results for June quarter of FY21.

ACC, SBI Cards are among the top companies that will be reporting their April-June quarterly earnings

8. 45 AM: Week ahead

Ajit Mishra, VP-Research, Religare Broking, said, "Markets managed to settle in the green for the fifth successive week, supported by upbeat global cues and a positive start to the earnings season. It was more of the consolidation bias in the index for most of the week however the strong earnings show from IT majors like Infosys and Wipro played a critical role in boosting the market sentiment in the final sessions."

Weak ahead in share market: 5 things you need to know for the upcoming week

8. 40 AM: Rupee close

On the currency front, rupee ended higher at 75.02 per dollar as against the earlier close of 75.19 per dollar

8. 30 AM: Closing

Virus fears took a back seat as optimism over quarterly earnings led Sensex and Nifty to close higher for this week. Consumer durables and oil and gas stocks logged maximum gains with IT stocks witnessing profit booking after two days of rally. While Sensex ended 548 points higher at 37,020, Nifty rose 161 points to 10,901.

Sensex closes 548 points higher; Nifty at 10,901; ONGC, Titan, RIL top gainers