Closing bell: The equity market reversed course to end lower on Tuesday, dragged by heavyweight Reliance Industries Ltd and banking stocks, as weak earnings continued to dampen investor sentiment.

The broader NSE index ended 0.93% down at 11,085.40, its lowest close since March 8, while the benchmark BSE index closed 0.77% lower at 37,397.24.

The volatility index had jumped 4.21% at the day's close.

Reliance Industries, one of India's most valuable companies, dragged markets the most as the stock was 2.4% down at closing bell.

The Nifty Auto index, which was higher initially, ended 2.14% lower, its lowest level in over five years. Reuters reported on Monday the country's largest lender State Bank of India proposed to tighten lending terms to auto dealers.

SBI's shares were also 4.7% lower at the time of close, which along with most other bank stocks dragged the Nifty Bank index that ended 1.72% lower.

Cafe chain operator Coffee Day Enterprises ended 20% down after its founder went missing, while reports alleged he wrote a letter saying he was under pressure from lenders.

Among gainers, Tata Consultancy Services' shares were up 2.2%, while Bharti Airtel ended about 4% higher.

Piramal Enterprises Q1 net up 21% at Rs 461 cr

Piramal Enterprises on Tuesday posted 21 per cent rise in consolidated net profit at Rs 461 crore for the quarter ended June 30, 2019.

The company had reported a net profit of Rs 382 crore in the year-ago period.

Net sales rose 21 per cent to Rs 3,506 crore in the latest quarter as against Rs 2,902 crore in June quarter 2018-19, Piramal Enterprises said in a statement.

Dr Reddy's launches Pregabalin capsules in US market

Dr Reddy's Laboratories on Tuesday announced the launch of Pregabalin capsules a therapeutic equivalent generic version of Lyrica (pregabalin) capsules approved by the U.S. Food and Drug Administration (USFDA).

The Lyrica (pregabalin) capsules brand had U.S. sales of approximately $5,462 million MAT for the most recent twelve months ending in May 2019 according to IQVIA Health.

Bank of India’s net profit up 156% to Rs 243 cr

Bank of India reported a 156 per cent jump in first quarter standalone net profit, on the back of robust growth in other income and lower provisioning burden.

The public sector bank’s net profit rose to ₹243 crore in the reporting quarter against ₹95 crore in the year-ago period.

The bank’s net interest income edged up 4 per cent year-on-year (y-o-y) to ₹3,485 crore. Other income soared 93 per cent y-o-y to ₹1,195 crore. The loan loss provisions declined 17 per cent y-o-y to ₹1873 crore. Read more here

Nifty Call: Go long on strong rally above 11,230 with fixed stop-loss

Following an initial rally, the Sensex and the Nifty witnessed selling pressure at higher level and began to decline. But the benchmark indices took support at the intra-day low and started to trend upwards.

The market breadth of the Nifty index is marginally biased towards advances. The volatility index, India VIX has slumped 1.2 per cent to 12.9. Although the key indices hovers in the positive territory, the Nifty mid and small-cap indices have fallen 0.6 per cent and 0.9 per cent respectively.

Among the sectoral indices, buying interest is seen in Nifty Pharma and IT indices which have advanced 0.8 per cent and 0.5 per cent correspondingly. However, the Nifty PSU Bank has declined almost 2 per cent.

The Nifty August futures contract commenced the session with a gap-open at 11,250. After marking an intra-day high at 11,289, the contract started to decline due to selling interest. The contract once again began to trend upwards, taking support from the intra-day low at 11,176.

Traders can consider initiating fresh long positions on a strong rally above the immediate resistance at 11,230 with a fixed stop-loss. The contract can trend upwards to 11,250 and 11,275 levels. Key supports below 11,200 are at 11,175 and 11,150 levels.

Strategy: Go long on a strong rally above 11,230 with a fixed stop-loss

Supports: 11,200 and 11,175

Resistances: 11,230 and 11,250

Tata Sponge hits over 2-1/2 year low after Q1 loss

The shares of Tata Sponge Iron Limited fell as much as 4.2 percent to ₹463.25 , the lowest since December 26, 2016.

The sponge iron manufacturer on Monday posted June-quarterr loss of ₹85.99 crore ($12.51 million) versus profit of ₹45.56 crore year ago, hurt by high finance cost and total expenses. The total expenses jumped four fold to ₹828 crore due to a spike in finance cost, cost of raw material, employee benefit cost and other expenses.

Up to last close, stock had fallen 34 percent this year, while JSW Steel Ltd which posted 57 percent drop in Q1 profit on Friday fell 21.3 percent.

Real estate attracts $34 billion PE investment since 2014: report

Indian real estate has attracted USD 34 billion private equity investment since 2014, largely in commercial real estate because of slowdown in housing demand, according to property consultant Knight Frank and RICS.

In their report Brick by brick - Moving towards ‘Housing for All’, Knight Frank and Royal Institute of Chartered Surveyors (RICS) on Tuesday said that 10 million homes will be delivered by 2022 as targeted by the government.

However, they projected that additional 25 million affordable homes will be required by 2030 because of rapid urbanisation.

“Since 2014, around USD 34 billion has been invested in Indian real estate across debt and equity. Commercial segments, which comprises office, retail and warehousing, has garnered majority share of this in the form of equity investments. The residential segment had 31 per cent share and most of it was in the form of debt,” the report said.

How to bid through UPI-backed ASBA for IPOs

To reduce the time taken to buy shares by retail investors in an initial public offering (IPO), tge Securities and Exchange Board of India (SEBI) and National Payments Corporation of India (NPCI) have rolled out an Unified Payments Interface (UPI) for IPOs.

From now on, retail investors will have to mandatorily bid for shares in an IPO through the UPI if they are applying for an IPO through registered brokers, depository participant and registered transfer agents. Read more here

Coffee Day Enterprises shares crack 20% after Chairman goes missing

Shares of Coffee Day Enterprises dropped 20 per cent on Tuesday after news surfaced that its Chairman and Managing Director V G Siddhartha has gone missing.

The scrip tumbled 20 per cent and hit its lower circuit limit as well as its 52-week low of ₹ 154.05 on the BSE. At the NSE, shares cracked 20 per cent and fell to its 52-week low of ₹ 153.40.

In a filing to the BSE on Tuesday morning, the company said “V G Siddhartha, Chairman and Managing Director of Coffee Day Enterprises Limited is not reachable since yesterday evening. We are taking the help of concerned authorities,” Coffee Day Enterprises said in a regulatory filing.

Read also: I could not take any more pressure, VG Siddartha says in a letter

“Company is professionally managed and led by competent leadership team, which will ensure continuity of business,” the filing added.

Bajaj Auto breaks support at ₹2,502, may test ₹2,349

Shares of two- and three-wheeler maker Bajaj Auto on Tuesday fell as much as 1.11 percent and fellbelow a support at ₹2,502.09.

This level is identified as the 61.8 percent Fibonacci projection of the downtrend from February 2, 2018 high to October 25, 2019 low(wave A). The breakdown suggests that in the near term stock may test the next support at ₹2,349.03, the 76.4 percent projection level.

The wave pattern suggests that the stock is in wave C of a three-wave downtrend and may fall up to ₹2,101.63 in a couple of months. Trend intensity(TI) indicator rises to 30, which suggests prices are trending downwards; the MACD is negative and is below its signal line.

The stock is down 8.6 percent this year as of last close, while the broader NSE Index is up about 3 percent in the same period.

Investing in companies with good governance practices is catching up in India: Kotak MF chief

The mutual fund industry has been registering a steady growth despite upheaval in the debt segment. With an asset under management (AUM) of ₹1.75 lakh crore, Kotak Mutual Fund had done well to deliver good returns, though it got into controversy by signing a standstill agreement on the Zee Group default on its debt issue.

In an interaction with  BusinessLine , Nilesh Shah, Managing Director, Kotak Asset Management Company, said that this decision was taken “in the interest of investors” without giving details about the issue as it is under SEBI investigation. Shah also spoke about the overall investment sentiments, improving corporate governance and the need to focus on economic growth. Read the excerpts here

I-T Dept attaches ₹254 cr worth `benami’ shares belonging to Kamal Nath’s kin

The Income Tax department on Tuesday attached ₹ 254 crore worth of benami equity shares held in name of Ratul Puri, nephew of Madhya Pradesh Chief Minister Kamal Nath, officials said.

Dr Reddy’s Laboratories: A key role change amid tough times

The relinquishing of the CEO post by GV Prasad, son-in-law of Dr Reddy’s Laboratories founder K Anji Reddy, will effectively move most of the company’s key executive operations to professionals. Read more here

Strides Pharma sees best day in over 8 months after Q1 profit

The shares of Strides Pharma Science Ltd rose as much as 12.2 percent to ₹395.8 on Tuesday, the biggest daily percentage gain since November 9, 2018.

The drug maker on Monday posted June-quarter consolidated net profit of ₹3.7 crore ($537,986.19) versus loss of ₹4.31 crore year ago. Its revenue jumped 44 percent to ₹686 crore.

It has entered into joint venture with Sihuan Pharmaceutical unit to own 49 percent stake in JV based in Hong Kong on Monday.

Up to last close, stock had fallen 23.5 percent this year, while Sanofi India Ltd which posted 2 percent drop in Q1 profit on Monday fell 4 percent.

Market update: Equity benchmark BSE Sensex on Tuesday opened on a firm note taking positive cues from Asian markets and US-China trade talks.

At 10.20 am, the 30-share index was trading 115.18 points, or 0.31 per cent, higher at 37,801.55. Similarly, the 50-share NSE Nifty rose 26 points, or 0.66 per cent, to 11,215.20.

Rupee opening: The rupee opened on a weak note and declined by 4 paise to 68.79 against the US dollar in opening trade on Tuesday, amid sustained foreign fund outflows and rising crude oil prices.

Forex traders said the rupee is trading in a narrow range as market participants are awaiting cues from the Federal Open Market Committee (FOMC) meeting on July 31.

Moreover, strengthening of the US dollar vis-a-vis other currencies overseas kept pressure on the Indian rupee, they added.

The rupee opened weak at 68.73 at the interbank forex market and then fell further to 68.79, down 4 paise over its last close.

The rupee had settled at 68.75 against the US dollar on Monday.

Max Life cash at 2-year high due to poor market sentiment

Max Life Insurance Co. raised its cash levels to the highest since November 2016 as the nations stocks head for their worst month since October.

India’s fourth-largest insurer is holding about 10% of its assets in cash, a five-fold jump over levels it usually maintains, as it doesn’t expect a turnaround in sentiment anytime soon, according to Chief Investment Officer Mihir Vora.

We are not taking big calls on equities, Vora, who helps oversee about ₹64,000 crore ($9.3 billion), said in an interview. We are keeping a bit more cash than usual.

What to watch: Insecticides shares may get patent lift

Shares of Insecticides India are likely to remain in focus, following receipt of patent from the Centre for its concentrate for 20 years, starting December 2, 2014.

In a notice to the stock exchanges, the company said the Patent Office has granted the patent for an insecticidal combination and process thereof, which covers suspension concentrate formulation comprising Buprofezin and Fipronil. The combination is sold by Insecticides India under the brand Aikido.

What to watch: PNB Housing results, fund-raising eyed

The board of PNB Housing Finance Ltd will meet on Tuesday to consider unaudited standalone and consolidated financial results for the quarter ended June 30, 2019.

Read also: PNB Housing Finance raises $ 100 million from IFC

It will also consider approval for raising of tier-I capital by issue of equity shares and/or any other financial instruments through preferential issue, QIP, rights issue or any other permissible mode, it said. Investors in PNB HF, which raised $100 million from IFC, will focus on its fund-raising plans.

Broker's call: CreditAccess Grameen (Buy)

CreditAccess Grameen (CA Grameen) provides micro finance services for women from poor and low income households in India. The company offers micro-credit loans for income generation, family welfare, emergency, and home improvement, as well as life insurance and national pension scheme. It also provides retail finance loans, such as Grameen Udyog, Udyog Vikas loan, Grameen Savaari and Grameen Suvidha.  Read more here

Broker's call: Future Lifestyle (Buy)

Future Lifestyle Q1FY20 results came in marginally below our expectations, with revenues growing 17 per cent (below estimate by 5 per cent) due to SSSG (same store sales growth) moderation. Adjusted for IndAS116, Ebitda rose 20 per cent and was in line, while PAT fell 7 per cent on higher depreciation. Read more here

Café Coffee Day founder VG Siddartha goes missing in Mangaluru

Noted entrepreneur and founder of Café Coffee Day (CCD) chain VG Siddartha went missing in Mangaluru on late Monday night. He is also the son-in-law of the former Karnataka Chief Minister SM Krishna.

The Mangaluru Police Commissioner, Sandeep Patil, said that Siddartha had left Bengaluru on Monday saying he is going to Sakleshpur. However on the way, he told the driver to go to Mangaluru. Read more here

Opening trade: The Indian equity market nudged 0.2 percent higher in opening trade on Wednesday, with bank index leading the rise.

At 9:15 am, the 30-share BSE index was up 0.22 percent at 37,735.54 points. The 50-share NSE index was up 0.13 percent at 11,213.70.

Day Trading Guide for July 30, 2019

Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:

₹2244 • HDFC Bank

₹791 • Infosys

₹267 • ITC

₹140 • ONGC

₹1211 • Reliance Ind.

₹343 • SBI

₹2129 • TCS

11215 • Nifty 50 Futures

S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.

Today's Pick - Vedanta (₹155.7): Sell

The stock of Vedanta tumbled 5 per cent accompanied by above average volume on Monday, decisively breaking below the key support level of ₹160. Investors with a short-term view can sell the stock at current levels as the near-term outlook has turned bearish. Read more on the technicals here

Asian stocks see modest gain; pound pressured by fresh Brexit pain

Asian stocks edged up on Tuesday as equity investors prepared for an expected U.S. interest rate cut this week while heightened concerns in currency markets about a no-deal Brexit sent the pound to a 28-month low.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.15%.

South Korea's KOSPI advanced 0.2% and Japan's Nikkei added 0.7%. Australian stocks climbed as much as 0.7% to touch a record high, supported by buoyant mining shares and adding to the previous day's tech-driven gains.

The U.S. Federal Reserve begins a two-day policy meeting later on Tuesday, at which it is widely expected to lower interest rates by 25 basis points. If implemented, it would be the central bank's first rate cut in a decade.

Prospective monetary easing by the Fed has been a key factor behind the recent bull run by global equities, particularly U.S. stocks, which have notched up record highs over the past month. Read more here

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