Closing Bell: Sensex, Nifty end in the red, weak rupee, midcaps pull indexes lower, Kotak Mahindra falls sharply post Q1 results

Closing Bell: Sensex, Nifty end lower##Closing Bell: Sensex, Nifty end lower

The Sensex ended lower by 23 points to 36,351.23, a decline of 0.06 percent, while the Nifty ended above the 10,950 mark at 10,957.10, lower by 23.35 points, or 0.21 percent. Kotak Mahindra tops the list of losers with the stock falling nearly 4 percent after its June quarter results. L&T, HDFC, Tata Steel, TCS, ICICI Bank, Coal India, Cipla were among other losers. Bharti Airtel, Vedanta, ITC, Axis and Yes Banks batted for the bulls. Midcaps remained weak with the Nifty MidCap closing lower by 0.72 percent, while the BSE MidCap ended 0.63 percent down. Sectoral indices on the BSE mostly underperformed with maximum losses seen in Healthcare, Industrials, Capital Goods, Metal. Only Consumer Durables traded nearly a percent high. Nifty sectoral indices were mostly in the red except FMCG and PSU Bank. Highest losses were seen in Pharma with 1.53 percent.

Pharma stocks drag market##Pharma stocks drag market

Market update: Sensex, Nifty trade in the red##Market update: Sensex, Nifty trade in the red

The Sensex extended losses by 64 points, or 0.17 percent, to 36,310.07, while the Nifty was trading at 10,953.25, lower by 27.20 points, or 0.25 percent. Micaps continue to underperform, with the Nifty MidCap lower by almost a percent. Bharti Airtel, Yes Bank, Vedanta, ITC, Adani Ports, Titan Company were among top gainers, while Kotak Mahindra, L&T, TCS, Tata Steel, TCS, Coal India were among top losers.

Sterlite Tech Q1FY19 net profit at Rs 121 crore Vs 112 crore (QoQ)##Sterlite Tech Q1FY19 net profit at Rs 121 crore Vs 112 crore (QoQ)

Competitive intensity to remain high in Indian telecom space: Jefferies##Competitive intensity to remain high in Indian telecom space: Jefferies

Jefferies remains cautious on telecom sector as it expects competitive intensity to remain high as fight for market share continues. India’s mobile phone customer base rose 0.53 percent to 1.13 billion in May, data released by the telecom regulator Trai showed on Wednesday.

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.

The brokerage firm says Q1 results will be muted with ARPU down between 4-7 percent QoQ and sub addition remaining low and expects incumbents to report margin decline of more than 200bps QoQ and report losses.

Expects Airtel’s Q1 revenues to rise 3 percent QoQ led by Telenor consolidation, mobile ARPU to fall over 7 percent QoQ and margins to decline 230 bps QoQ led by moderation across all key business. Expects Idea to report 3 percent QoQ fall in revenue in Q1 led by decline in ARPU and expect margins to fall 280 bps QoQ to below 14 percent.

Expect recovery post equilibrium (post-mid-FY20) to be gradual and ARPU increases will require investment in both capacity and content.

Airtel shares rise as much as 1.8 percent, while shares in Idea drop as much as 2.6 percent.

Kotak Mahindra, Baja Finance, Sterlite Tech, GNA Axles post Q1 results##Kotak Mahindra, Baja Finance, Sterlite Tech, GNA Axles post Q1 results

Kotak Mahindra Bank Q1FY19 standalone net profit up 12.3% at Rs 1,025 crore (YoY), but misses CNBC-TV18 estimates by over 11%. Kotak Mahindra Bank Q1FY19 Gross NPA at 2.17% Vs 2.22% (QoQ); Net NPA at 0.86% Vs 0.98% (QoQ).

Bajaj Finance Q1FY19 revenue up 34.1% at Rs 3,791.3 crore Vs Rs 2,826.5 crore (YoY);Bajaj Finance Q1FY19 net profit up 38.5% at Rs 833.7 crore; Q1FY19 profit after tax as per GAAP at Rs 1,018 crore Vs Rs 602 crore.

Sterlite Technologies Q1FY19 net profit at Rs 121 crore Vs 112 crore (QoQ).

GNA Axles Q1FY19 net profit up 26.4% at Rs 14 crore Vs Rs 11.1 crore (YoY); GNA Axles Q1FY19 Revenue up 46.5% at Rs 212.6 crore Vs Rs 145.1 crore (YoY).

Rupee breaches past 69 per dollar, indexes turn negative##Rupee breaches past 69 per dollar, indexes turn negative

The Indian rupee breaches past 69 per US dollar mark for the first time since July 6, extending losses as the Dollar index gains. The rupee volatility along with selling in most sectors has also affected the benchmark indexes with the Sensex down by over 60 points to 36,313, while the Nifty is lower by 33 points to 10,947. Kotak Mahindra tops the list of losers with the stock falling nearly 4 percent after its June quarter results. L&T, HDFC, Tata Steel, TCS, ICICI Bank, Coal India are among other losers. Bharti Airtel, Vedanta, ITC, Axis and Yes Banks bat for the bulls. 

Nupur Jainkunia explains decline in liquor stocks ahead of Friday’s GST meet##Nupur Jainkunia explains decline in liquor stocks ahead of Friday’s GST meet

The stock price of United spirits and United Breweries saw some kind of selling pressure as stock prices are down 7-8% this week, ahead of GST council meet on Friday. As per reports, the GST could consider including extra neutral alcohol (ENA) used for liquor production within the ambit of the goods and services tax (GST).

Investor and analyst seems to be quite cautious on the same as they expect manufacturing cost will increase if ENA comes under GST regime. They expect margins to be impacted by 10-15%. Though price hikes and lower sugar prices could offset some margin pressure.

As base quarter was low due to closure of liquor vends on highways, analysts expect liquor companies will report a good quarter backed by volume growth and price hike on yoy basis. But sequentially there will be some pressure on revenues as well as profits.

ENA is used in making alcoholic beverages, 90% of it is used for the potable alcohol and also used as an ingredient for the manufacturing of personal care products as well as a solvent in paints and printing ink industry.

Currently, ENA (for potable alcohol) is not taxed by either the Centre or state governments. Also alcohol and petroleum products are the key items which are outside the purview of GST. As final product is taxed under state excise laws, liquor manufacturers will not be able to avail the benefit of input tax credit.

Mid-cap IT stocks down on valuation correction, says analyst##Mid-cap IT stocks down on valuation correction, says analyst

Shares of MindTree Ltd, Larsen & Toubro Infotech Ltd and Hexaware Technologies Ltd fell between 4.3 percent and 11.5 percent on Thursday. “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 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 reported 30 percent YoY rise in June-quarter profit on Wednesday but markets were slightly cautious about the company’s outlook.

“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.

MindTree’s stock posts biggest daily percent loss since November 9, 2016. About 5 million MindTree shares change hands compared with 30-day average of about 1.4 shares. 

MidTree’s share traded at Rs 950, down by 10.59 percent, or Rs 112.55 on the BSE at 1.24 pm. Hexaware Technologies shares traded at Rs 489, down by 2.46 percent or Rs 12.35 on the BSE. L&T Infotech shares were at Rs 1743, down nearly 6 percent, or Rs 111 on the BSE. (From Reuters)

Market update: Sensex, Nifty trade flat##Market update: Sensex, Nifty trade flat

The BSE Sensex traded higher by 46.46 points, or 0.13 percent, to 36,419.90, while the NSE Nifty 50 is down by 0.02 percent, or 1.70 points, to 10,978.75. Midcaps remain weak, with the Nifty MidCap trading lower by 0.48 percent, while the BSE MidCap is lower by 0.30 percent. Gainers include Bharti Airtel, Titan Company, Yes Bank, Axis Bank, M&M, ONGC, while losers include Hindalco, Bharti Infratel, Bajaj Finserv, Bajaj Finance, Kotak Mahindra. Almost all sectoral indices on the BSE are trading flat, while on the NSE, the Nifty PSU Bank has risen by 1.63 percent, but Nifty IT trades lower by a percent.

Kotak Mahindra Bank Q1FY19 posts standalone net profit of Rs 1,025 crore ##Kotak Mahindra Bank Q1FY19 posts standalone net profit of Rs 1,025 crore 

Allahabad Bank confirms capital infusion of Rs 1,790 crore by govt##Allahabad Bank confirms capital infusion of Rs 1,790 crore by govt

Allahbad Bank confirmed capital infusion of Rs 1,790 crore by the government on Thursday. Allahabad Bank shares traded at Rs 41.65, rising by 1.59 percent on the BSE at 12.52 pm. 

The Modi government announced capital infusion of Rs 11,337 crore in Punjab National Bank, Indian Overseas Bank, Andhra Bank, Corporation Bank and Allahabad Bank. Of the Rs 11,337 crore, Rs 2,816 crore will be infused in PNB, Rs 2,555 crore in Corporation Bank, Rs 2,157 crore in IOB, Rs 2,019 crore in Andhra Bank and Rs 1,790 crore in Allahabad Bank. Out of these five banks, Corporation Bank, Allahabad Bank and IOB are under the prompt correction action of RBI. The government is expected to infuse another tranche of capital in few more banks by September end.

Bajaj Finance Q1FY19 revenue up 34.1% at Rs 3,791.3 crore##Bajaj Finance Q1FY19 revenue up 34.1% at Rs 3,791.3 crore

Market update: Sensex, Nifty trade flat, rupee weakens##Market update: Sensex, Nifty trade flat, rupee weakens

The NSE Nifty 50 is back in the red, trading at 10,976.50, marginally lower by 3.95 points, or 0.04 percent down. The Sensex is trading at 36,418.20, higher by 44.76 points, or 0.12 percent up. The Indian rupee has weakened against the US dollar at 68.87. It opened 68.70, after Wednesday's close of 68.82.

Infosys signs MoU with Bengaluru Metro for Electronics City Station##Infosys signs MoU with Bengaluru Metro for Electronics City Station