Two Trades for Today: A graphite electrode maker for 7.3% rise, a mid-cap pharma stock for close to 7% gain
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Business Standard
37 minutes ago
- Business Standard
Barometers snap 4-day losses; auto shares climb
The key equity indices ended with moderate gains today, snapping a four-day losing streak, amid buying interest and encouraging domestic data. Investors will continue to monitor domestic macroeconomic indicators, global tariff-related cues, and corporate earnings announcements. The Nifty settled above the 25,150 mark. All the sectoral indices on the NSE were ended in the green with auto, pharma and consumer durables shares leading the gains. As per provisional closing data, the barometer index, the S&P BSE Sensex advanced 317.45 points or 0.39% to 82,570.91. The Nifty 50 index added 113.50 points or 0.45% to 25,195.80. The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.83% and the S&P BSE Small-Cap index added 0.95%. The market breadth was strong. On the BSE, 2,582 shares rose and 1,474 shares fell. A total of 159 shares were unchanged. The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 1.37% to 11.98. Economy: Indias retail inflation, measured by the Consumer Price Index (CPI), cooled to a multi-year low of 2.10% in June 2025, thanks to a sharp dip in food prices. The data, released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday, 14 July 2025, marks the lowest year-on-year inflation rate since January 2019. For comparison, CPI inflation stood at 2.82% in May 2025 and 5.08% in June 2024. Indias trade deficit for June 2025 narrowed to $18.78 billion, compared to $21.88 billion in May, government data showed Tuesday. IPO Update: The initial public offer (IPO) of Anthem Biosciences received bids for 12,67,72,828 shares as against 4,40,70,682 shares on offer, according to stock exchange data at 15:39 IST on Tuesday (15 July 2025). The issue was subscribed 2.88 times. The issue opened for bidding on Monday (14 July 2025) and it will close on Wednesday (16 July 2025). The price band of the IPO is fixed between Rs 540 and 570 per share. An investor can bid for a minimum of 50 equity shares and in multiples thereof. Buzzing Index: The Nifty Auto index jumped 1.50% to 23,905.25. The Index jumped 1.75% for the straight two trading sessions. Hero MotoCorp (up 4.76%), TVS Motor Company (up 2.95%), Bajaj Auto (up 2.76%), Samvardhana Motherson International (up 2.48%) and Bharat Forge (up 2.35%), Tube Investments of India (up 2.07%), Tata Motors (up 1.47%), MRF (up 1.3%), Bosch (up 1.26%) and Mahindra & Mahindra (up 1.18%) surged. Stocks in Spotlight: HCL Technologies fell 3.31% after the company reported a 10.77% drop in net profit to Rs 3,843 crore for the quarter ended 30 June 2025, compared to Rs 4,307 crore in the previous quarter same fiscal. Revenue from operations increased slightly to Rs 30,349 crore in Q1 FY26, up from Rs 30,246 crore in Q4 FY25. Deepak Fertilisers & Petrochemicals Corporation rallied 2.02% after the company entered into a long-term agreement with Petronet LNG (PLL) for the regasification of Liquefied Natural Gas (LNG). Tata Technologies advanced 2.27% after the company has reported 5.1% increase in consolidated net profit to Rs 170.3 crore despite a 1.9% fall in revenue from operations to Rs 1,244.3 crore in Q1 FY26 as compared with Q1 FY25. Den Networks rose 0.69%. The cable TV distributor consolidated net profit jumped 23.90% to Rs 53.64 crore in Q1 FY26 as against Rs 43.29 crore posted in Q1 FY25. However, revenue from operations slipped 2.52% year on year to Rs 241.27 crore posted in Q1 FY26. RailTel Corporation of India rose 2.32% after the company secured an order worth Rs 264 crore from East Central Railway for the implementation of the Kavach system, the indigenous Train Collision Avoidance System (TCAS). Rallis India rose 0.54%. The pesticide makers standalone net profit surged 97.92% to Rs 95 on a 22.22% increase in revenue from operations to Rs 957 crore in Q1 FY26 over Q1 FY25. Sambhv Steel Tubes rallied 4.81% after the company reported a 50% year-on-year increase in total sales volume, reaching 92,706 tons in Q1 FY26 compared to 61,908 tons in the same period last year. Value Added Products contributed 79,717 tons to the overall volume, up 47% from a year ago. While sales of structural pipes and tubes dipped to 50,294 tons (from 54,267 tons), On the financial front, the company declared its Q1 results on 14 July 2025. Net profit rose 45.15% quarter-on-quarter to Rs 16.46 crore, while net sales jumped 34.20% to Rs 495.26 crore Swaraj Engines surged 10.65% after the company's net profit surged 15.69% to Rs 49.97 crore in Q1 FY26 as against Rs 43.19 crore posted in Q1 FY25. Revenue from operations climbed 15.81% YoY to Rs 484.1 crore recorded in the quarter ended 30 June 2025. Tejas Networks slipped 6.43% after the company reported a consolidated net loss of Rs 193.87 crore in Q1 FY26, a sharp decline from the net profit of Rs 77.48 crore posted in the same quarter last year. Revenue from operations plunged 86.49% to Rs 201.98 crore in Q1 FY26, down from Rs 1,496.07 crore recorded in the corresponding quarter of the previous year. Global Markets: Most European shares advanced despite Trump tariff threat. Most Asian indices ended higher on Tuesday after China's GDP grew 5.2% in the second quarter, according to data from the National Bureau of Statistics. While the growth beat market expectations, it still marked a slowdown from the 5.4% seen in the first quarter. Junes economic indicators in China offered a mixed bag. Retail sales growth eased to 4.8% year-on-year, down from 6.4% in May. On the brighter side, industrial output beat forecasts, rising 6.8% year-on-year, while fixed asset investment climbed 2.8% in the first half of 2025. The urban unemployment rate held steady at 5% in June, unchanged from May but lower than the two-year high of 5.4% in February. Over in the US, the S&P 500 inched up on Monday after President Donald Trump signaled willingness to negotiate on trade, including with the European Union. The gesture helped calm market jitters over a potential global trade war. By the closing bell on the NYSE, the Dow Jones Industrial Average was up 0.20%, the S&P 500 gained 0.14%, and the NASDAQ Composite added 0.27%. Among standout movers, shares of Palantir Technologies surged 4.96%, or $7.05, to hit an all-time high of $149.15. Boeing Co also soared to a 52-week high, rising 1.62% or $3.67 to $230.51.
Indian Express
an hour ago
- Indian Express
Jane Street vs SEBI: As trading firm seeks relief, a recall of its actions and the regulator's allegations of market manipulation
India's markets regulator has banned the New York-based proprietary trading firm Jane Street Capital for alleged market manipulation to make major illicit gains that it took out of the country. Jane Street has refuted the allegations about unlawful trading practices but has deposited more than Rs 4,800 crore in an escrow account, in compliance with the requirements of the interim order passed by the Securities and Exchange Board of India (SEBI) on July 3. In a leaked email sent to employees, Jane Street said it was 'beyond disappointed' with SEBI's 'extremely inflammatory' accusations. The company is set to contest the ban and the freezing of some of its funds. Jane Street has formally requested access back to its trading activities in India. SEBI has said it is in the process of examining the company's request. How did things build up to SEBI's investigation? On January 17, the privately owned hedge fund took home a whopping Rs 735 crore in a single day by allegedly implementing algorithms that allowed them to manipulate NIFTY and Bank NIFTY index prices. This wasn't a one-off – between January 2023 and March 2025, Jane Street allegedly made unlawful net profits of more than Rs 36,500 crore. The capital markets watchdog started looking closely at Jane Street's operations in April 2024, after taking note of a legal dispute in the United States (which was, however, quickly settled) between Jane Street and a rival company that had hired two employees who were crucial in the development of these confidential algorithms. SEBI cracked down this month, precluding Jane Street from trading in the Indian markets and ordering banks to freeze more than Rs 4,800 crore in their accounts. In a 105-page interim order, SEBI accused Jane Street of market manipulation. How did Jane Street allegedly seek to dodge SEBI? Jane Street relied on several factors to pull off its alleged illegal 'operation' in the Indian market. These include the creation of multiple Indian subsidiaries to bypass a requirement in SEBI's 2019 'Foreign Portfolio Investors' regulation that states, 'A foreign portfolio investor shall transact in the securities in India only on the basis of taking and giving delivery of securities purchased or sold.' This rule blocks intraday trading (buying or selling of stocks on the same day they were obtained, all before the market closes) for foreign firms. In this case, Jane Street's Indian subsidiaries were technically allowed to indulge in intraday stock trading, 'pumping and dumping' prices for their convenience. All this happened while foreign subsidiaries (owned by Jane Street as well) held positions on optimal options that generated significant profits. How did this alleged strategy work? SEBI suspects that Jane Street's algorithm-based strategy consisted of two main stages: Intra-day Index Manipulation and Expiry Day Manipulation. Early in the day, Jane Street's algorithms would rapidly buy major banking stocks that were components of the 'Bank NIFTY' index. This would artificially drive the price of the index up. Noticing this, thousands of retail investors would jump on the rise, buying call options and selling puts, hoping for persistent growth. However, the rise would be spurious, allegedly orchestrated by Jane Street, which was buying put options and selling calls. Notably, on contract expiry days, Jane Street's algorithm would dump its index futures and holdings, resulting in a sudden decline of the share price. This led to massive losses for retail investors, whose call options would be labeled useless and who would be forced to pay the premium. For Jane Street, the opposite happened – they were able to cash out on their put options for monumental returns. Without their specifically catered algorithms, Jane Street would not have been able to pull off this alleged operation at the scale that they did. The algorithms were able to make multiple targeted trades within milliseconds of executing. The derivatives market predominantly consists of futures and options (F&O) trading. Futures are contracts that legally bind holders to buy or sell a certain asset at an agreed-upon price at some time in the future, regardless of what the price is then. Thus, this benefits buyers when the price has increased and sellers when it has decreased (compared to the predetermined price). Options are contracts that give buyers the right (not an obligation) to purchase an asset from a willing seller at some time in the future. To ensure fairness, buyers are required to pay the seller a premium right after signing. There are two types of options contracts: call options and put options. Call options give holders the ability to buy the asset at the predetermined price. Put options allow the holders to sell the asset at the predetermined price. So, if the price does not suit the holders' options, they would not be forced to buy or sell their asset but would still have to pay the premium. F&O trading is one of the riskiest trading choices a retail investor can make. According to SEBI, more than 9 out of 10 retail investors in India have lost money in FY25 trading on F&Os. However, it is possible to minimize these risks by understanding ways to optimally use F&O trading, potentially in terms of limiting capital expended, enhancing risk tolerance, and more. The writer is a student and a summer intern at The Indian Express
Business Standard
2 hours ago
- Business Standard
Indices trade with decent gains; pharma shares rally for 3rd day
The headline equity benchmarks traded with modest gains in mid-afternoon trade, extending their upward momentum on the back of sustained buying interest. Investor focus remained on domestic macroeconomic indicators, global tariff-related cues, and corporate earnings announcements. The Nifty traded above the 25,150 mark. Pharma shares extending gains for third day in a row. At 14:26 IST, the barometer index, the S&P BSE Sensex advanced 301.97 points or 0.37% to 82,556.01. The Nifty 50 index added 100.45 points or 0.40% to 25,184.35. The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.60% and the S&P BSE Small-Cap index added 0.99%. The market breadth was strong. On the BSE, 2,570 shares rose and 1,392 shares fell. A total of 177 shares were unchanged. Economy: Indias retail inflation, measured by the Consumer Price Index (CPI), cooled to a multi-year low of 2.10% in June 2025, thanks to a sharp dip in food prices. The data, released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday, 14 July 2025, marks the lowest year-on-year inflation rate since January 2019. For comparison, CPI inflation stood at 2.82% in May 2025 and 5.08% in June 2024. Buzzing Index: The Nifty Pharma index jumped 0.95% to 22,624.25. The index rallied 2.47% in three consecutive trading sessions. Natco Pharma (up 3.04%), Biocon (up 2.84%), Sun Pharmaceutical Industries (up 2.77%), Lupin (up 1.60%), Alkem Laboratories (up 1.45%), Torrent Pharmaceuticals (up 1.15%), Granules India (up 1.14%), Aurobindo Pharma (up 0.95%), Ipca Laboratories (up 0.91%) and Gland Pharma (up 0.68%) advanced. On the other hand, Mankind Pharma (down 1.78%), Divis Laboratories (down 0.32%) and Laurus Labs (down 0.08%) edged lower. Numbers to Track: The yield on India's 10-year benchmark federal paper rose 0.06% to 6.315 from the previous close of 6.311. In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.8050 compared with its close of 85.9200 during the previous trading session. MCX Gold futures for 5 August 2025 settlement rose 0.16% to Rs 97,931. The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.11% to 97.66. The United States 10-year bond yield fell 0.25% to 4.418. In the commodities market, Brent crude for September 2025 settlement declined 46 cents or 0.66% to $68.75 a barrel. Stocks in Spotlight: Swaraj Engines surged 9.80% after the company reported a 15.7% increase in net profit to Rs 49.97 crore on a 15.8% increase in net operating revenue to Rs 484.10 crore in Q1 FY26 as compared with Q1 FY25.
