July series starts on a muted note; Nifty slips past 11,800

The Indian stock market started the July series on a muted note. The S&P BSE Sensex fell nearly 200 points, while the Nifty50 failed to hold on to 11,800 levels on a closing basis on June 28.

The final tally on D-Street – the S&P BSE Sensex plunged 191 points to 39,394 while the Nifty50 closed 52 points lower at 11,788 on June 28.

For the month, the S&P BSE Sensex closed 0.8 percent lower while the Nifty50 ended with losses of over 1 percent for the month of June; its biggest fall since October 2018.

Bulls took control of D-Street on the first day of the July series amid weak global cues and reports of a sub-par monsoon. Investors are also waiting on a definitive outcome from the G20 Summit in regard to the ongoing trade war between the US and China.

“Markets drifted lower and lost nearly half a percent, citing weak cues. The benchmark made a cautious start, in response to feeble global cues and the news of below average rainfall for the four consecutive weeks,” Jayant Manglik, President – Retail Distribution, Religare Broking Ltd told Moneycontrol.

“Markets will react to the outcome of the G20 meet in early trade on July 1 and then focus would shift to the upcoming Union Budget on July 5. In short, participants should prepare themselves for an eventful week,” he said.

Manglik advised investors to hedge their positions instead of naked trades. Investors, on the other hand, can utilise further dips to accumulate quality stocks.

Sectorally, almost all the indices traded in tandem to the benchmark and closed lower. The S&P BSE Energy index closed 1.5 percent lower, followed the Metal index which fell 1.1 percent, and the BSE Telecom index closed 1.03 percent down.

The S&P BSE Realty index was up 0.58 percent, followed by the S&P BSE FMCG index that gained 0.26 percent. The S&P BSE Capital Goods index closed flat but with a positive bias.

Top Sensex gainers include Bajaj Finance, Axis Bank, NTPC, and Maruti Suzuki while on the losing front Coal India, IndusInd Bank, and YES Bank lost 2-3 percent respectively.

Stocks in News

Lupin ended with gains of over 1 percent after the company received tentative approval from USFDA for its Mirabegron Extended Release (ER) tablets.

Shares of Cox & Kings ended with loses of over 10 percent hitting lower circuit after the company defaulted on the payment of commercial papers due to cash flow mismatch. Out of the aggregate amount of Rs 200 crore of the unsecured commercial papers, the company paid Rs 50 crore and the balance amount of Rs 150 crore has not been paid.

Shares of Dewan Housing Finance Corporation closed 11 percent lower after the company deferred Q4 earnings announcement. The company was scheduled to announce Q4 earnings on June 29. Earlier, the company had informed the stock exchanges that it will not be able to furnish the audited standalone and consolidated financial statements for FY19, within the time stipulated by SEBI norms

Shares of Reliance Capital fell more than 6 percent on reports that the company will likely defer Q4 earnings, according to CNBC-TV18 sources.

Global Update

European markets opened fractionally higher on June 28 as investors tracked developments at the G20 summit in Osaka, Japan. The pan-European Stoxx 600 edged 0.3 percent higher during the morning session.

In the Asian markets, Nikkei slipped 0.29 percent to close at 21,275.92. The Topix index also shed 0.14 percent to end its trading day at 1,551.14.

Mainland Chinese stocks slipped, with the Shanghai composite lower by 0.6 percent to 2.978.88. Hong Kong’s Hang Seng index declined more than 0.3 percent, while the Kospi ended its trading day 0.17 percent lower at 2,130.62.

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