Stock Market Live: Sensex gains 100 points, Nifty above 11,150; Tech Mahindra jumps 5%

Gold hits record, gets more precious as the dollar loses value

Gold hurtled to record peaks on Tuesday before the sheer scale of its gains drew a burst of profit taking, which lifted the dollar from two-year lows and curbed early equity gains. The precious metal had stormed almost $40 higher at one point to reach $1,980 an ounce, only for a wave of selling to slap it back to $1,947 in wild trade. Gold is still up over $130 in little more than a week as investors wager the Federal Reserve will reaffirm its super-easy policies at a policy meeting this week, and perhaps signal a tolerance for higher inflation in the long run. More here

Buzzing | Yes Bank shares fall 10% to trade below its FPO price of Rs 12

Shares of Yes Bank fell 10 percent in early morning deals on Tuesday to Rs 11.10 per share, below its FPO price of Rs 12. The stock price of the lender has fallen almost 20 percent in the last 2 days. On Monday, the stock was locked in a 10 percent lower circuit after the company’s shares allotted in the follow-on public offer (FPO) got listed on the bourses. The stock of the private sector bank has consistently been falling since the pricing announcement of the FPO on July 10, down 58 percent since then. State Bank of India (SBI) on Monday also said that its holding in Yes Bank has come down to 30 percent after the FPO. Prior to the FPO, SBI holding in Yes Bank stood at 48.21 percent, the country’s largest lender said in a regulatory filing. Read more here.

Tech Mahindra rallies over 5% post Q1 earnings; brokerages raise target price

Shares of Tech Mahindra rallied over 5 percent in early morning deals on Tuesday after the IT major reported better-than-expected earnings for the first quarter of fiscal 2021 that led brokerages to increase the target price on the stock. The IT stock gained as much as 5.77 percent to hit an intraday high of Rs 702.40 on the BSE. The company on Monday had reported a net profit of Rs 972.3 crore in the quarter ended June 2020, a rise of 20.9 percent from Rs 803.9 crore in the previous quarter. Net profit came in higher than CNBC-TV18 analysts’ poll estimates of Rs736 crore. CLSA said that the contours of Tech Mahindra Q1FY21 results were similar to peers with a sharp revenue decline, strong cost control (Ebit margin was stable QoQ at 10.1 percent) and healthy cash generation (FCF was up 55 percent QoQ). Where it fell short was on giving visibility on the trajectory of the recovery: deal wins were relatively subdued ($290 million, down 43 percent QoQ) and historical volatility in its margin limits confidence in the quantum of expansion. Read more here.

Rupee Opens | Indian rupee opened marginally lower at 74.86 per dollar on Tuesday as against the previous close of 74.83, amid gains in the domestic equity market.

Recovery till June uneven; demand hurting from increased lockdowns: Nomura

The recovery in the economy till June has been uneven and the July indicators are showing a poor picture, Nomura Financial’s India Economist Aurodeep Nandi told CNBC-TV18 in an interview. Nandi said that the increase in lockdowns have impacted demand. He said labour participation was slowly returning to pre-COVID levels, but that unemployment rates in India were “uncomfortably high”.

SBI stake in Yes Bank comes down to 30% after FPO

State Bank of India (SBI) on Monday said its holding in Yes Bank has come down to 30 percent after the follow on public offer (FPO). Prior to the FPO, SBI holding in Yes Bank stood at 48.21 percent, the country’s largest lender said in a regulatory filing. With the FPO, the share capital of Yes Bank doubled to 2,505.4 crore of face value Rs 2 per share from 1,255 of face value of Rs 2 each, it said. Following the FPO, SBI holding in Yes Bank stood at 751.6 crore shares, which is 30 percent of the total share capital.

Opening Bell: Sensex opens 150 points higher, Nifty above 11,150; Tech Mahindra jumps 5%

Indian indices are likely to open higher on Tuesday, tracking positive global trends, led by gains in banks and heavyweight Tech Mahindra post its Q1 earnings. At 9:18 the Sensex was trading 157 points higher at 38,092 while the Nifty rose 46 points to 11,178. Tech Mahindra, IndusInd Bank, Axis Bank, SBI and ICICI Bank were the top gainers while Asian Paints, Powergrid, HCL Tech, ITC and Infosys led the losses.

India Inc’s foreign borrowings slipped 81% to $1.02 billion in June

India Inc’s borrowing from foreign market slipped over 81 percent to $1.02 billion in June this year, data from Reserve Bank of India (RBI) showed on Monday. The domestic companies had raised $5.40 billion from the overseas markets in June 2019. Of the total fund raised by the Indian companies, $851.81 million was borrowed through the automatic route, while the rest of the funds came in via approval route, as per the RBI data on external commercial borrowings (ECB) for the month of June 2020.

After 1,100 job cuts in May, Swiggy further lays off 350 employees due to COVID-19 impact

Food ordering and delivery platform Swiggy on Monday said it is laying off 350 employees as part of the realignment exercise it started in May on account of the impact of COVID-19 pandemic. In May, Sriharsha Majety, Co-founder & CEO of Swiggy, had informed the staff through an email that the firm will lay off 1,100 employees over the next few days, spanning across multiple grades and functions. In an official statement, Swiggy said, “In May, we began the exercise of realigning resources to create capacity in higher potential areas with the optimism of the business attaining pre-COVID levels in the near-term. However, with the industry still only having recovered to about 50 percent of its peak, we have to, unfortunately, go ahead with this final realignment exercise, which will result in the net loss of 350 jobs.”

Tech Mahindra Q1FY21: Net profit jumps 21% to Rs 972 crore; beats estimates

IT firm Tech Mahindra reported a net profit of Rs 972.3 crore in the quarter ended June 2020, a rise of 20.9 percent from Rs 803.9 crore in the previous quarter. Net profit higher than CNBC-TV18 analysts’ poll estimates of Rs736 crore. Revenue from operations during Q1FY21 was down 4 percent to Rs 9,106.3 crore from Rs 9,490.2 crore, QoQ. Revenue in dollar terms fell 6.7 percent to $1,207.5 million from $1,294.6 million, on a sequential basis. However, dollar revenue beat CNBC-TV18 estimates by 2.1 percent. More here

Mindspace Business Parks REIT public issue subscribed 38% on Day 1 of bidding

The public issue of Mindspace Business Parks REIT, owned by K Raheja group and Blackstone, was subscribed 38 per cent on the first day of bidding on Monday. The company proposes to raise up to Rs 4,500 crore from the public issue, which will close on July 29. The issue received bids for 2,59,22,800 shares against the total issue size of 6,77,46,400 shares, according to data available with the NSE. Institutional investors portion was subscribed 37 per cent and other investors 40 percent.

First up, here is quick catchup of what happened in the markets on Monday

Indian shares inched lower on Monday as heavyweight banking stocks fell after a central bank report forecast that bad loans could soar due to a rise in debt amid the pandemic. A record jump in daily coronavirus cases also weighed on the sentiment. The Sensex ended 194 points lower at 37,935 while the Nifty lost 62 points to settle at 11,132. Asian Paints, HCL Tech, Infosys, TCS and Ultratech Cement were the top gainers on the Nifty50 index, while ICICI Bank, Zee, HDFC Bank, Axis Bank, and IndusInd Bank led the losses.

Welcome to CNBC-TV18’s Market Live Blog

Good morning, readers! I am Pranati Deva the market’s desk of CNBC-TV18. Welcome to our market blog, where we provide rolling live news coverage of the latest events in the stock market, business and economy. We will also get you instant reactions and guests from our stellar lineup of TV guests and in-house editors, researchers, and reporters. If you are an investor, here is wishing you a great trading day. Good luck!