Investors’ focus will be on macro data, which includes India’s retail inflation reading due later in the day, as well as the consumer price index from the United States on Wednesday.
A spike in inflation would keep central banks on the path of aggressive rate hikes.
Meanwhile, the Reserve Bank of India (RBI) said on Monday it was putting in place a mechanism for international trade settlements in rupees, which banks will need a prior approval to use.
The RBI’s move comes as the Indian rupee touches all-time lows amid continued foreign portfolio outflows from domestic stock markets and a broadly stronger greenback.
“The dominant factor influencing markets – equity, bond, currency and many commodities – is the sustained rise in the dollar which has gained momentum during the last one month. Dollar has appreciated 5 percent since early June and 13 percent so far in 2022. If this trend sustains, it is bad news for EM equity. But now it appears that this ‘flight to dollar safety’ is a bit overdone and due for some correction.” says Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
In India, after TCS’ Q1 results indicating margin pressure for the industry, IT index has turned weak but valuations for the segment are now fair, he says. “The most resilient segment in the market now is Bank Nifty and the leading stock is ICICI Bank. This resilience of the banking segment is likely to continue. Autos, capital goods and some segments of FMCG also are on strong wicket,” he adds.
Highlights from trade:
- Rupee slides to new record low
- HFCL gains 8% on order win
- Spandana Sphoorty tanks over 8% after muted performance in Q4
- Bosch to invest over Rs 200 cr in next 5 years in India
!1 New UpdateClick here for latest updates
ICRA expects hotel industry revenues, margins to return to pre-COVID levels in FY23
- The hotel industry’s revenues and margins are expected to return to pre-COVID levels in 2022-23 despite potential impact on demand in case of further waves of the pandemic, according to ratings agency ICRA.
- Domestic leisure and transient travel will be the main demand drivers, although there will be a gradual recovery in business travel and foreign tourist arrivals (FTAs), ICRA said in a statement.
- Pan-India premium hotel occupancy is expected to be at 68-70 per cent for FY2023, it said adding the average room rate (ARR) is expected to hover around Rs 5,600-5,800.
Bajaj Consumer Care and Varun Beverage surge even as rest of FMCG stocks decline
Price as on 12 Jul, 2022 01:57 PM, Click on company names for their live prices.
Market LIVE Updates: Shares of Eureka Forbes jumped over 14 per cent in Tuesday’s early trade after the company named Pratik Pota as CEO and MD of the company. In a filing to the exchanges, the company said, in the meeting held on July 11, 2022, the board has approved the appointment of Pratik Pota as Managing Director and Chief Executive Officer of the company, for a term of 5 years with effect from August 16, 2022, subject to the approval of shareholders.
Price as on 12 Jul, 2022 01:53 PM, Click on company names for their live prices.
Debt mutual funds see Rs 92,248-cr outflow in June on uncertain macro environment
- Mutual funds focused on investing in fixed-income securities witnessed a heavy outflow of Rs 92,248 crore in June on uncertain macro environment, driven by expectations around an increasing rate cycle, higher commodity prices and slowdown in growth.
- This comes following a net outflow of Rs 32,722 crore in May and an inflow of Rs 54,756 crore in April, data available with Association of Mutual Funds in India (Amfi) showed.
- Out of the 16 fixed-income or debt fund categories, 14 witnessed net outflows during the month under review. The heavy withdrawal was seen from segments, such as overnight, liquid and ultrashort-term duration funds.
We expect a subdued 1QFY23 for pharma companies, owing to continued US generic price erosion, high Covid-led domestic base for most companies, RM inflation and higher freight costs. To compensate for the above factors, INR depreciation will provide some relief. In the US, there have not been any meaningful new launches this quarter. Ex-Covid, we expect domestic growth for the sector to be 10-12% yoy.We expect a sequentially improved performance of India hospitals business, led by higher domestic and international footfalls, post a slightly subdued 4QFY22 due to Omicron impact. However we note that IP and OP volumes are yet to completely revert to pre-Covid levels. We note that Q1FY23 performance is unlikely to be as strong as Q3FY22, which benefitted from a superior case mix, as well as higher footfalls, due to pent-up demand. For the diagnostic companies, we expect sequential recovery of non-Covid volumes, given Covid sales will slip qoq. We expect non-Covid realizations per patient to be largely flattish qoq. For DLPL and METROHL, we expect partial benefit of accrual of synergies from the Suburban and Hitech acquisitions, respectively.”
– Purvi Shah, DVP (Fundamental Research), Kotak Securities
Gamestop Launches NFT Marketplace
MRPL board meeting on July 15. The meeting of the Board of Directors of Mangalore Refinery and Petrochemicals has been scheduled for Friday, 15th July, 2022 to discuss/decide way forward for complying with minimum public shareholding requirements by issue of further public offer, preferential issue, qualified institutions placement etc.
Price as on 12 Jul, 2022 01:14 PM, Click on company names for their live prices.
BSE midcap outperforms Sensex
Rupee settlement will help India trade with Russia, Iran and S.Asian neighbours: Experts
On Monday, the Reserve Bank of India said it had put in place a mechanism for international trade settlements in Indian rupees (INR) with immediate effect.
The RBI said that “in order to promote growth of global trade with emphasis on exports from India and to support the increasing interest of global trading community in INR, it has been decided to put in place an additional arrangement for invoicing, payment, and settlement of exports/imports in INR.” (Source: Reuters)
Stocks at 52-week high at this hour in NSE 500
Market LIVE Updates: HCL Tech at 52-week low ahead of results
Price as on 12 Jul, 2022 12:18 PM, Click on company names for their live prices.
As per DoT, Vodafone Idea, Bharti Airtel, Adani and Reliance Jio applied to take part in the spectrum auction
As per @DoT_India, Vodafone Idea, Bharti Airtel, Adani and Reliance Jio applied to take part in the spectrum auctio… https://t.co/EJrnrAMHY5
— ET NOW (@ETNOWlive) 1657607958000
Tier 1 IT companies are expected to report strong revenue growth on a yoy basis and range from 2-4.5%. On the other hand, mid-tier category IT companies can report revenue growth in the range of 3-5% (covered by us). Infosys will lead the way with growth of 4.5% in constant currency (c/c). On the flip side, we believe seasonal weakness will impact growth of TechM (2.6% in c/c), Wipro (2.8% in c/c, 2.1% organic) and HCLT (2.4% in c/c). Due to a likely decline in BPO business linked to mortgage origination and refinancing, we expect Mphasis to report a weak quarter. LTI will report modest 3.1% growth due to lower pass-through revenues. However, Mindtree will lead the way on growth among mid-tier companies.
– Sumit Pokharna, Vice President – Fundamental Research, Kotak Securities
Realty firm Macrotech Developers will invest USD 500 million (about Rs 3,950 crore) over the next 5-7 years on sustainability initiatives across all projects as it aims to be a net-zero carbon company by 2035, a top company official has said.
Price as on 12 Jul, 2022 11:40 AM, Click on company names for their live prices.
Shares of Mishtann Foods rose 3 per cent during the early trading hours on Tuesday, after the company’s bottomline more than trebled in the June 2022 quarter. The packaged foods company reported about 217 per cent rise in the net profit to Rs 11.03 crore in the quarter ended June 30, 2022 as against a net profit of 3.49 crore in the same period previous year.
Price as on 12 Jul, 2022 11:34 AM, Click on company names for their live prices.
Market LIVE Updates: Telecom gear maker HFCL spikes over 6% on bagging orders worth Rs 59.22 crore for rollout of fibre network from one of the leading private telecom operators of the country for providing services to roll out their fibre-to-the-home network and long-distance fibre network in various telecom circles.
Price as on 12 Jul, 2022 11:30 AM, Click on company names for their live prices.
Market LIVE Updates: Global financial services firm Nomura Singapore purchased 12.5 lakh shares of technology services provider BLS International Services through an open market transaction at an average price of Rs 214 apiece, aggregating to Rs 26.75 crore.
Price as on 12 Jul, 2022 11:11 AM, Click on company names for their live prices.
Hetal Gandhi of CRISIL Limited says: – Double digit growth will continue for IT sector – Telecom sector will see a strong recovery in Q1FY23 – Margins to cool for construction companies after a quarter
#EarningsWithETNOW | @HetalGandhi3 of @CRISILLimited says – Double digit growth will continue for I.T. sector -… https://t.co/aLighsJKCz
— ET NOW (@ETNOWlive) 1657603579000
Nifty50 Top Gainers at 11 AM
London copper rebounds on China stimulus hopes
Copper prices in London rose on Tuesday, supported by hopes that Chinese stimulus measures would support economic growth in the world’s biggest consumer of the metal. Three-month copper on the London Metal Exchange rose 0.3% to $7,610 a tonne by 0249 GMT, reversing losses in the previous two sessions.
Market LIVE Updates: How the IT stocks are faring now
Price as on 12 Jul, 2022 10:54 AM, Click on company names for their live prices.
ITC breaks into the elite top-10 club
ITC, the cigarette-to-hotels stock has now regained old glory to re-enter the elite top-10 club on Indian stock exchanges. Going by the market capitalisation of all listed companies on BSE, ‘meme stock’ ITC is now India’s 10th largest company, leaving behind giants and Dalal Street favourites like Bharti Airtel, Bajaj Finance, Adani Green Energy, Kotak Mahindra Bank and Asian Paints
Auto components major Bosch Ltd will invest over Rs 200 crore in India in the next five years in advanced automotive technologies and digital mobility space, its Managing Director Soumitra Bhattacharya has said.
Price as on 12 Jul, 2022 10:45 AM, Click on company names for their live prices.
Dividend yield stocks catch investor fancy during market corrections but turn out to be value traps often. We have seen this, especially with PSU stocks that have high dividend yields but no growth.
– Abhay Agarwal, Founder and Fund Manager at Piper Serica
Market LIVE Updates: See how Nifty PSU Banks fare
Price as on 12 Jul, 2022 10:17 AM, Click on company names for their live prices.
Market Live Updates: Financial services firm 5paisa Capital clocked 2.6 per cent growth in Q1 profit at Rs 7.39 crore in the quarter ended June. Revenue from operations grew 40 percent YoY to Rs 84.03 crore during the quarter.
Price as on 12 Jul, 2022 10:00 AM, Click on company names for their live prices.
€ at 1:1 to $. Gold, crypto, pound, and yen crumble. The supremacy of US currency. Emerging market countries need to be alert”, says Uday Kotak of Kotak Mahindra Bank
#MarketsWithETNOW | "€ at 1:1 to $.Gold, crypto, pound, and yen crumble. The supremacy of US currency. Emerging mar… https://t.co/xr85SdM1Se
— ET NOW (@ETNOWlive) 1657599418000
Rupee falls 13 paise to 79.58 against US dollar in early trade
- The rupee fell 13 paise to 79.58 against the US dollar in early trade on Tuesday as strong American currency overseas and losses in domestic equities weighed on investor sentiments. Besides, persistent foreign fund outflows and elevated crude oil prices kept the pressure on the local unit, forex traders said.
- At the interbank foreign exchange, the rupee opened lower at 79.55 against the American dollar and slipped further to quote at 79.58, a decline of 13 paise over its last close. In initial trade, the local currency witnessed a high of 79.55 and a low of 79.62 against the US dollar. In the previous session, the rupee had closed at an all-time low of 79.45 against the greenback.
The rapid ascent to 79.9 that USDINR was lined up for yesterday, stalled at the 79.56 vicinity followed by a close near 79.43. This forces us to bring up 79.25 as the downside marker, as oscillator divergences are beginning to weigh heavily on the bullish momentum, calling for a dip. Brace for large moves.
– Anand James – Chief Market Strategist at Geojit Financial Services
Shares of Spandana Sphoorty Financial plunged more than 8 per cent during the early trade on Tuesday after the company reported a muted performance in the March 2022 quarter. The NBC’s consolidated net profit declined by 42 per cent to Rs 28.6 crore in the March quarter (Q4FY22) on one-time settlement fees and transition expenses. It had posted a consolidated net profit of Rs 49.3 crore in the year-ago period.
Price as on 12 Jul, 2022 09:47 AM, Click on company names for their live prices.
Market Live Updates: BSE Power Index: Sunny Side up
Price as on 12 Jul, 2022 09:44 AM, Click on company names for their live prices.
Buy or Sell: Stock ideas by experts for July 12, 2022
Market LIVE Updates: Here’s how the Nifty Pharma fares
Price as on 12 Jul, 2022 09:38 AM, Click on company names for their live prices.
Larsen & Toubro announced it has bagged significant contracts to build data centres of capacities totalling 10.8 MW at Mumbai and Navi Mumbai. The company will design, build and would be involved in supply work, among others for the data centers and allied buildings including fit-outs.
Price as on 12 Jul, 2022 09:37 AM, Click on company names for their live prices.
Market LIVE Updates: Global financial services firm Nomura has picked up a stake in BLS International Services which provides consular services related to visas and passports. Following this update, the stock surged 4%
Price as on 12 Jul, 2022 09:32 AM, Click on company names for their live prices.
MARKET VIEW: Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
In India, after TCS’ Q1 results indicating margin pressure for the industry, IT index has turned weak. But valuations for the segment are now fair. The most resilient segment in the market now is Bank Nifty and the leading stock is ICICI Bank. This resilience of the banking segment is likely to continue. Autos, capital goods and some segments of FMCG also are on strong wicket.
Check out the most active stocks on NSE in opening deals
Price as on 12 Jul, 2022 09:25 AM, Click on company names for their live prices.
Stocks in focus: Suryoday Small Fin, 5Paisa Capital, Spandana, HFCL, HCL Tech, L&T and more
Opening Bell: Sensex tanks 300 points, Nifty below 16,150; NMDC plunges 5%, Hindalco 3%
RUPEE AT NEW RECORD LOW
#MarketAlert | Rupee opens at record low of 79.55 against US Dollar #Rupee #RupeeFall #RupeeVsDollar https://t.co/Ec9jQjwPPl
— ET NOW (@ETNOWlive) 1657596962000
Asian stocks at lowest in two years
Asian shares fell on Tuesday, weighed down by the prospect of further monetary policy tightening by central banks, China’s renewed COVID outbreak and Europe’s energy shortage, which also left the euro a whisker from parity with the safe haven dollar.
SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange traded 87 points, or 0.54 per cent, lower at 16,111.50, signaling that Dalal Street was headed for a negative start on Tuesday.
Quarterly earnings today
HCL Technologies, National Standard, Sterling and Wilson Renewable Energy, Delta Corp, Anand Rathi Wealth and Goa Carbon are among companies that will announce their quarterly earnings today.
Tech View: Nifty50 forms small bullish candle; upside hurdle at 16,300
The Nifty50 on Monday staged a recovery from the day’s low to erase almost entire intraday gains. The index ended up forming a small bullish candle on the daily chart with small wicks. Analysts said the momentum stays positive as long as the 50-pack index holds above the 16,000-16,100 range. The upside hurdle is seen at around 16,300 level, they said.
Oil slides as renewed China COVID curbs temper fuel demand outlook
Oil prices fell on Tuesday as fresh COVID-19 curbs in China, the world’s biggest crude importer, and fears of a global economic slowdown weighed on the fuel demand outlook.
Tokyo stocks open lower, extending US falls
Tokyo stocks opened lower on Tuesday, extending Wall Street falls on news of another Covid-19 surge in China as investors awaited US inflation data later in the week. The benchmark Nikkei 225 index was down 0.47 percent, or 126.75 points, at 26,685.55 in early trade, while the broader Topix index was down 0.41 percent, or 7.77 points, at 1,906.89.
Wall Street ends lower ahead of economic data, earnings
US stocks lost ground on Monday as a lack of catalysts left market participants warily embarking on a week back-end loaded with crucial inflation data and the unofficial beginning to second-quarter earnings season. The Dow Jones Industrial Average fell 164.31 points, or 0.52%, to 31,173.84, the S&P 500 lost 44.95 points, or 1.15%, to 3,854.43 and the Nasdaq Composite dropped 262.71 points, or 2.26%, to 11,372.60.
Rupee drops 19 paise to record low of 79.45 against US dollar
The rupee depreciated by 19 paise to close at its fresh lifetime low of 79.45 against the US dollar on Monday amid broad-based dollar demand and foreign capital outflows.
Sensex, Nifty on Monday
The 30-share pack Sensex recovered intra-day losses and settled 87 points lower at 54,395. Its broader peer, Nifty50, ended with a negative bias but managed to hold the 16,200 mark.