Nagaraj Shetti, Technical Research Analyst, HDFC Securities:
The choppy trend continued in the market and there is no respite for bulls, after showing upside bounce from the lower support (15635) in previous session. As long as the support holds, the odds of market bounce back remain alive for the next 1-2 sessions. A decisive move below the support is likely to extend weakness to 15500 levels. On the upside bounce, the area of 15800 could be a crucial resistance to be watched.
Ajit Mishra, VP - Research, Religare Broking Ltd
Markets traded in a range and ended unchanged, extending the prevailing consolidation phase. Initially, the benchmark opened on firm tracking positive global cues however profit taking at the latter half trimmed all the gains. On the sectoral front, a mixed trend was witnessed. The broader indices continued their outperformance wherein both midcap and small cap ended higher by 0.4% and 0.7% respectively.
Markets will react to the macroeconomic data viz. IIP and CPI inflation in early trade on Tuesday i.e. July 13. The tussle over the next directional move in the index is still on and upcoming earnings announcement may result in the probable breakout. Meanwhile, we suggest continuing with a selective trading approach while keeping a check on leveraged positions.
Jateen Trivedi, Senior Research Analyst at LKP Securities:
Rupee traded weak around 74.55 on back of dollar index strength, with overall resistance placed at 74.30-74.45 zones. Crude prices traded soft which helped the rupee not fall greatly beyond 74.60. Going ahead rupee can be seen between 74.45-74.80 range on the back of dollar strength.
Vinod Nair, Head of Research at Geojit Financial Services:
Domestic indices started with mild gains hovering around the flat line, however, it trimmed early gains tracking cues from its European peers ahead of the release of key inflation data later today. Shares of small finance banks were in focus today as the RBI allowed the reverse merger with their respective promoter entities. The realty stocks rallied as hopes of demand revival boosted the sector’s outlook.
S Ranganathan, Head of Research at LKP securities:
Markets were volatile and profit booking was expected given the outperformance of the Midcap & Smallcap Indices. As a matter of fact, we have not witnessed such an outperformance for almost 7 years. Today’s trade saw hectic activity and sustained interest in cement & textiles with the latter exhibiting good momentum across market capitalization.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research Limited
The market witnessed a volatile movement and failed to breach the resistance level of Nifty 50 Index level of 15800. Market suggests it is prudent to wait for a decisive breakout above 15800 and technical factors to improve before going long in the market. 15620-15650 will be an important support zone. The traders are advised to refrain from building a new buying position until market see further improvement and breakout above 15800.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The index is struggling! It is unable to sustain at higher levels and hence makes a U-turn at any given instance. We are still stuck in a range which is between 15400 and 15900. Unless either level is not taken out, we will not see a meaningful move.
Rupee Close:
Indian rupee erased intraday gains but ended marginally higher at 74.57 per dollar, amid volatile trade selling seen in the domestic equity market.It opened 15 paise higher at 74.48 per dollar against Friday's close of 74.63 and traded in the range of 74.40-74.59.
Market Close
: Benchmark indices ended flat on July 12 amid volatility.
At close, the Sensex was down 13.50 points or 0.03% at 52372.69, and the Nifty was up 2.80 points or 0.02% at 15692.60. About 1889 shares have advanced, 1163 shares declined, and 149 shares are unchanged.
UltraTech Cement, Grasim Industries, Shree Cements, JSW Steel and SBI Life Insurance were the top gainers on the Nifty. However, top losers were Adani Ports, Bharti Airtel, BPCL, Tata Steel and Infosys.
On the sectoral front, realty index added 3.5 percent, while selling was seen in the IT, metal, oil & gas and power indices. BSE midcap and smallcap indices ended in the green.
NMDC fixes iron ore prices:
NMDC fixed iron ore price w .e. f. 10-07-2021. The Lump Ore (65.5%, 6-40mm) at Rs 7,450 per ton and Fines (64%, - 1Omm) at Rs 6,360 per ton.
NMDC was quoting at Rs 165.90, down Rs 1.60, or 0.96 percent on the BSE.
Kitex Garments locked at 20% upper circuit
Kitex Garments has locked at 20 percent upper circuit for the second day in row after company has entered Telangana with an initial investment of Rs 1,000 crore.
It has touched a 52-week high of Rs 168.65.There were pending buy orders of 81,844 shares, with no sellers available.
The company has entered Telangana with an initial investment of Rs 1,000 crore, state Industries and Commerce Minister KT Rama Rao announced on July 9.
Nifty IT index shed 0.6 percent dragged by the Oracle Financial Services Software, Mindtree, Infosys
Paytm gets shareholders' nod to raise Rs 12,000 crore
One97 Communications, the parent company of fintech major Paytm on July 12 received approval from its shareholders at an extraordinary general meeting to raise Rs 12,000 crore through a fresh issue of shares, paving way for one of India's largest initial public offerings (IPO) in recent times. Read More
Market at 3 PM
Benchmark indices were trading flat amid volatility with buying seen in the realty names.
The Sensex was down 12.79 points or 0.02% at 52373.40, and the Nifty was up 6.80 points or 0.04% at 15696.60. About 1861 shares have advanced, 1171 shares declined, and 161 shares are unchanged.
Rupee Updates:
Indian rupee erased early gain and trading at day's low level at 74.58 per dollar, amid selling seen in the domestic equity market.It opened 15 paise higher at 74.48 per dollar against Friday's close of 74.63.
Dollar Updates:
The dollar was stable against most currencies on Monday as concerns about the pandemic made investors cautious, while they also waited for more clues about the global economic recovery before making their next moves.
Nish Bhatt, Founder & CEO, Millwood Kane International:
The price for the third tranche of SGB is fixed at Rs 4807 per gram. The investment in non-physical gold, via digital or paper gold, is picking up pace. The high interest is on account of the recent firmness in the prices of Gold in the past few weeks.
The government on its part has been continuously trying to move investment in Gold from physical to digital/ paper gold to keep a check on the currency and larger fiscal deficit. Investment in SGB is a superior alternative to physical gold. Investment in SGB saves the cost of buying, storing, and selling the physical gold bar or coins.
The price for the yellow metal has been on an up move for the past 3 weeks as US Treasury yields dropped to a 4-month low due to concerns related to the virus. The next big trigger for gold prices will be the Fed meeting later this month, rising inflation in the US is a cause of concern and any change in the stance on interest rates or liquidity by the Fed will have its impact on the prices.
The latest variant of the virus has created uncertainties, rise in the number of cases. Moving forward the ability to control the virus by large countries, the pace of vaccination, global economic recovery, and the rising inflation will guide gold prices.
KV Kamath committee to submit restructuring proposals for SP Group, Future Group this week
The KV Kamath Committee, an expert panel appointed by the Reserve Bank of India (RBI), is due to submit its report this week with at least nine restructuring proposals including SP Group and Future Group companies, ET Now reported citing sources. The nine proposals reportedly account for a debt of over Rs 58,000 crore.
The nine companies, that the publication reported are SP Group, Future Retail, Future Entertainment, Future Lifestyle, Ambience Developers and Infrastructure, Patel Engineering, Hinduja National Power Corporation, ACB India and Metals and Minerals Trading Corporation (MMTC).
Tapan Patel- Senior Analyst (Commodities), HDFC Securities
: Crude oil prices traded lower with benchmark NYMEX WTI crude oil prices fell by 0.67% to $74.06 per barrel for the day. MCX Crude oil July futures were trading over half a percent down near Rs 5,523 by noon.
Crude oil prices are expected to trade sideways to down for the day with resistance at $75 and support at $72.80 per barrel. MCX Crude oil July has support at Rs 5,450 and resistance at Rs 5,580.
European markets are trading weak with FTSE down half a percent
Market update at 2 PM:
Sensex is down 1.28 points or 0.00% at 52384.91, and the Nifty added 7.70 points or 0.05% at 15697.50. UltraTech Cement, ICICI Bank and Maruti Suzuki are the top gainers while Tata Steel, Indiabulls Real Estate and HDFC Bank are the most active stocks.
All sectoral indices barring IT are trading in the green with the midcap and smallcap indices adding half a percent each.
Federal Bank shares gain after RBI nod to re-appointment of Shyam Srinivasan as MD & CEO
Federal Bank share price jumped over 5 percent intraday on July 12 a few days after the Reserve Bank of India (RBI) cleared Shyam Srinivasan's reappointment as the managing director and chief executive officer.
The reappointment, approved on July 9, will be effective from September 23, 2021 to September 22, 2024, the bank said in a press release to exchanges.
Federal Bank was quoting at Rs 89.85, up Rs 4.20, or 4.90 percent on the BSE.
Nepal signs $1.3 billion mega deal with India's SJVN
Nepal has signed a USD 1.3 billion deal with India’s hydro power major Satluj Jal Vidyut Nigam (SJVN) to develop a 679-megawatt hydropower project in eastern Nepal, the second mega venture undertaken by India in the neighbouring Himalayan nation.
The single largest foreign investment project, based on the 2017 cost estimates, is located between Sankhuwasabha and Bhojpur districts in eastern Nepal, according to a press release issued by the Investment Board Nepal.
The 679-megawatt Lower Arun Hydropower project is the second mega project undertaken by India after the USD 1.04 billion 900-MW Arun-3 hydroelectric project.
SJVN was quoting at Rs 29.25, up Rs 1.00, or 3.54 percent on the BSE.
More than 480 stocks hit their 52-week high in intraday trade on BSE:
More than 480 stocks, including Bajaj Finserv, Tata Steel, Tata Consumer Products, UltraTech Cement, ACC, Ambuja Cements, Dalmia Bharat, Apollo Hospitals, Edelweiss Financial Services, Glenmark Pharma and Sobha, hit their 52-week high in intraday trade on BSE.
Gaurav Garg, Head of Research, CapitalVia Global Research Ltd.
On the basis of favorable global cues, Indian equities indices remained in the green in morning deals. Sentiments were positive as the Confederation of Indian Industry (CII) claimed in its latest survey report that India's economy is projected to rebound quickly from the impact of the second wave of COVID-19 because the lockdowns were primarily designed to prevent social gatherings and had a limited impact on the economy.
Department of Economic Affairs also reported that the Indian economy is showing signs of swift recovery in the following months. US market closed near the higher level and kept the sentiments positive after the statement from the Fed earlier this week. Asian markets were mostly trading with positivity following the positive cues from the Wall Street.
We witnessed a bounce back in the market from the support level of 15650. 15800 will be a keep resistance level. If the market breaches and sustains above the level, we can witness a positive movement in the market till the level of 16100-16150. On the sectoral front, all the major sectors have been trading in a positive zone. Shree Cements and JSW Steel are the top gainers while Bharti Airtel and BPCL are the top losers on Nifty.
Market Updates:
Benchmark indices erased the early gains and trading flat.
The Sensex was up 13.94 points or 0.03% at 52400.13, and the Nifty was up 11.90 points or 0.08% at 15701.70. About 2049 shares have advanced, 971 shares declined, and 144 shares are unchanged.
Rakesh Jhunjhunwala to back new low-cost airline, may own upto 40 percent stake: Report
India's renowned investor Rakesh Jhunjhunwala is reportedly backing a new low-fare airline venture with an investment of up to $35 million (Rs 260.7 crore), a report in The Economic Times said.
The new airline is pursued by seasoned aviation professionals including Jet Airways CEO Vinay Dube who is reportedly leading preliminary talks with Jhunjhunwala and a foreign investor, the report added citing an anonymous source. Jhunjhunwala may own as much as 40 percent of the stake in the new airline. Read More
Market at 1 PM
Benchmark indices were holding on the early gains with Nifty around 15750.
The Sensex was up 225.63 points or 0.43% at 52611.82, and the Nifty was up 76.70 points or 0.49% at 15766.50. About 2132 shares have advanced, 883 shares declined, and 138 shares are unchanged.
BSE Bankex index added 1 percent led by the Federal Bank, ICICI Bank, SBI
Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors
Flows from Zomato IPO should start hitting the market as dollar eases after RBI strongly ensured that 74.80 is not breached on the upside. Range for the day 74.30 to 74.70. Exporters to sell near to the higher end of 74.70 while importers to buy near the lower end for near term imports.
Motilal Oswal Financial Services on mid & small-caps and Nifty earnings:
Midcap 100 and Smallcap 100 have outperformed Nifty since March 2020. Midcap 100 and Smallcap 100 have delivered 13/8 consecutive months of positive returns. This is the highest ever for Midcap 100 while for Smallcap 100 it is the second highest ever.
Component of re-rating has shrunk while earnings growth has been a major driver for Nifty and Midcap 100 index over the past 5 years in their respective total returns over June’16-June’21.
Nifty earnings for FY22 is expected to see a 94 percent year-on-year (YoY) growth. However, lockdowns in April and May’21 will result in 19 percent quarter-on-quarter (QoQ) contraction in earnings for Motilal Oswal/Nifty universe.
Rupee Updates:
Indian rupee is trading higher by 19 paise at 74.44 per dollar, amid buying seen in the domestic equity market.It opened 15 paise higher at 74.48 per dollar against Friday's close of 74.63.
Market at 12 PM
Benchmark indices were trading higher with Nifty holding above 15750.
The Sensex was up 257.12 points or 0.49% at 52643.31, and the Nifty was up 82.60 points or 0.53% at 15772.40. About 2137 shares have advanced, 838 shares declined, and 121 shares are unchanged.
JSW Steel, UltraTech Cement, Shree Cements, Tata Consumer Products and Grasim Industries were among major gainers on the Nifty, while losers included Bharti Airtel, BPCL, Bajaj Finserv, Adani Ports and HDFC Bank.
Nifty Metal index added 1 percent led by the Welspun Corp, JSW Steel, MOIL, Jindal Steel##Nifty Metal index added 1 percent led by the Welspun Corp, JSW Steel, MOIL, Jindal Steel
Amarjeet Maurya - AVP - Mid Caps, Angel Broking
Maruti Suzuki India Limited announced a price change for Swift and all CNG variants owing to increase in various input costs. Increase in Ex Showroom Prices (Delhi) is up to Rs 15,000 on the above models. The new prices are effective from today i.e. 12 th July, 2021.
We believe that this is a positive development for the company and it will keep operating margin stable. We are positive on company.
Oil prices slip
Crude futures slipped on Monday as concerns over slowing global growth outweighed the prospect of tightening supply after talks among key producers to raise output in coming months stalled.
Marwadi Shares and Finance on Zomato IPO:
The company is going to list at a P/S (Price to Sales) of 29.9X based on its FY21 sales with a market cap of Rs 5,96,234 million. As there are no listed peers in India so valuations cannot be compared on a relative basis. We recommend to “Subscribe” this IPO as the company is one of the leading foodservice platforms in India having recognized consumer brand equity and is well placed to capitalize on the large market opportunity available in India.
World equity indices (CY21 YTD) in terms of USD (%)
Cyient bags order from UK-based HM Land Registry:
Cyient announced that it has been selected by HM Land Registry (HMLR) to support its Local Land Charges (LLC) Programme. HM Land Registry safeguards land and property ownership valued at £7 trillion, enabling over £1 trillion worth of personal and commercial lending to be secured against property across England and Wales. Cyient has partnered with Esri UK and Xerox to deliver this project. The stock was trading at Rs 867.00, up Rs 15.85, or 1.86 percent. It has touched an intraday high of Rs 874.00 and an intraday low of Rs 853.60.
Market update at 11 AM:
Sensex is up 292.70 points or 0.56% at 52678.89, and the Nifty added 93.30 points or 0.59% at 15783.10. Shree Cements, UltraTech Cement and Tata Consumer Products are the top gainers while Tata Steel, HDFC Bank and Indiabulls Real Estate are the most active stocks.
All sectoral indices are trading in the green with Realty, PSU Bank and the auto index adding 1-3 percent each.
ICICI Direct:
The USDINR pair approached its sizeable Call base of 75 and reverted as Call writers are dominating at higher levels. We feel a leg of profit booking should take the pair towards 74.5 in coming days.
The dollar-rupee July contract on the NSE was at Rs 74.78 in the last session. The open interest rose 1.2% for the July series.
LIC IPO likely cleared by Cabinet Committee on Economic Affairs
The Cabinet Committee on Economic Affairs (CCEA) has likely cleared the LIC IPO, sources told CNBC TV18. The government plans to list LIC on bourses by March FY22.
The ministerial panel is set to decide on finer details, including pricing and the quantum of stake to be divested by the Centre, sources said.
The planned stake sale in LIC was announced by Finance Minister Nirmala Sitharaman while presenting the Union budget for the financial year 2020-21. Read More
Gold Updates:
Gold prices eased on Monday as a slightly stronger dollar and buoyant equities dimmed the safe-haven metal's appeal, with investors awaiting USinflation data and Federal Reserve Chairman Jerome Powell's testimony this week.
Nifty PSU Bank index rose 1 percent supported by the Indian Bank, SBI, Bank of India, Central Bank of India
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The Nifty has bounced from Friday's low and is once again trading around the mid point of the range which is between 15400-15900. If we can scale higher and get past 15900, we should be able to achieve 16100. Until then trading is going to be lackluster with tepid volumes.
Rupee Opens:
Indian rupee gained in the early trade on July 12. It opened 15 paise higher at 74.48 per dollar against Friday's close of 74.63, amid buying seen in the domestic equity market.
On July 9, the rupee ended higher at 74.63 per dollar against previous close of 74.71.
