Heavy selling in the last hour of the session dragged benchmark indices lower. The Nifty gave up 11,600 level and closed just above 11,550 mark. Investors turned cautious ahead of Infosys' Q1 earnings and India's economic data due later today.

India's industrial production data for May 2019 and CPI inflation rate for June 2019 will be announced today, 12 July 2019.

The Sensex fell 86.88 points or 0.22% to settle at 38,736.23. The index rose 198.73 points, or 0.51% at the day's high of 39,021.84. The index fell 138.26 points, or 0.36% at the day's low of 38,684.85.

The Nifty 50 index fell 30.40 points or 0.26% to settle at 11,552.50. The index rose 56.65 points, or 0.49% at the day's high of 11,639.55. The index fell 44.30 points, or 0.38% at the day's low of 11,538.60.

The S&P BSE Mid-Cap index rose 0.41%. The S&P BSE Small-Cap index rose 0.16%. Both these indices outperformed the Sensex.

The market breadth was negative On the BSE, 1190 shares rose and 1254 shares fell. A total of 150 shares were unchanged.

Among the sectoral indices on the BSE, the S&P BSE Metal index (up 0.91%), the S&P BSE Basic Materials index (up 0.60%) and the S&P BSE Realty index (up 0.55%) outperformed the S&P BSE Sensex. Meanwhile, the S&P BSE Capital Goods index (down 1.22%), the S&P BSE Telecom index (down 0.97%) and the S&P BSE Oil & Gas index (down 0.77%) underperformed the S&P BSE Sensex.

IT major Infosys rose 0.87% to Rs 727.10. The company announced after market hours today, that its net profit fell 6.8% to Rs 3,802 crore on 1.23% increase in revenue from operations to Rs 21,803 crore in Q1 June 2019 over Q4 March 2019. Operating profit fell 3.2% to Rs 4,471 crore in Q1 June 2019 over Q4 March 2019. Operating margin was 20.5% in Q1 June 2019.

The company has increased FY20 revenue growth guidance to 8.5-10% in constant currency, while maintaining FY20 operating margin guidance in range of 21-23%.

The company's current policy is to pay up to 70% of the free cash flow annually by way of dividend and/or buyback. The board has reviewed and approved a revised capital allocation policy of the company after taking into consideration the strategic and operational cash requirements. Effective from financial year 2020, the company expects to return approximately 85% of the free cash flow cumulatively over a 5-year period through a combination of semi-annual dividends and/or share buyback and/or special dividends, subject to applicable laws and requisite approvals, if any, Infosys said.

We had a strong start to FY20 with constant currency growth accelerating to 12.4% on year over year basis and digital revenue growth of 41.9%. This was achieved through our consistent client focus and investments which have strengthened our client relationships, said Salil Parekh, CEO and MD. Consequently, we are raising our revenue guidance for the year from 7.5%-9.5% to 8.5%-10%.

Our first quarter results and continued focus on operational efficiencies gives us the confidence on our revenue and margin guidance for the year, said Nilanjan Roy, CFO.

Metal stocks rose. Jindal Steel & Power (up 3.92%), Vedanta (up 2.44%), Tata Steel (up 2.34%), NMDC (up 1.59%), National Aluminium Company (up 1.18%), Steel Authority of India (up 0.96%), JSW Steel (up 0.26%), Hindalco Industries (up 0.25%) and Hindustan Zinc (up 0.09%), edged higher. Hindustan Copper fell 0.39%.

Private sector bank witnessed selling. Yes Bank (up 1.89%), Federal Bank (up 1.34%), RBL Bank (up 0.94%), City Union Bank (up 0.54%) and ICICI Bank (up 0.08%), edged higher. HDFC Bank (down 0.6%), Kotak Mahindra Bank (down 0.62%) and Axis Bank (down 1.46%), edged lower.

IndusInd Bank fell 1.98% to Rs 1510.35. The bank's net profit rose 38.31% to Rs 1,432.50 crore on 35.40% increase in total income to Rs 8,624.62 crore in Q1 June 2019 over Q1 June 2018. The result was announced during trading hours today, 12 July 2019.

The bank's net interest margin increased to 4.05% in Q1 June 2019 compared with 3.92% in Q1 June 2018. CASA (Current Accounts-Savings Accounts) ratio stands at 43.04% as on 30 June 2019 as against 43.42% as on 30 June 2018.

The bank's gross non-performing assets (NPAs) stood at Rs 4199.66 crore as on 30 June 2019 as against Rs 3947.41 crore as on 31 March 2019 and Rs 1740.62 crore as on 30 June 2018. The ratio of gross NPAs to gross advances stood at 2.15% as on 30 June 2019 as against 2.10% as on 31 March 2019 and 1.15% as on 30 June 2018. The ratio of net NPAs to net advances stood at 1.23% as on 30 June 2019 as against 1.21% as on 31 March 2019 and 0.51% as on 30 June 2018. Provisions and contingencies jumped 23.03% to Rs 430.62 crore in Q1 June 2019 over Q1 June 2018.

PSU banks were mixed. Corporation Bank (up 1.47%), Canara Bank (up 1.28%), IDBI Bank (up 1.15%), Punjab National Bank (up 1.01%), Central Bank of India (up 0.5%), Andhra Bank (up 0.44%), Bank of India (up 0.23%), Union Bank of India (up 0.19%) and State Bank of India (up 0.12%), edged higher. Syndicate Bank (down 0.25%), Bank of Maharashtra (down 0.62%), Indian Bank (down 0.68%), Punjab & Sind Bank (down 1.34%), Allahabad Bank (down 1.36%) and UCO Bank (down 2.63%), edged lower.

GNA Axles was locked at upper circuit of 20% at Rs 283.60 after the company's consolidated net profit rose 29.9% to Rs 18.18 crore on 21.37% increase in total income to Rs 258.17 crore in Q1 June 2019 over Q1 June 2018.

Cox & Kings hit a lower circuit of 5% at Rs 22.05 after CARE Ratings downgraded ratings on the company's commercial paper, non convertible debentures and long term facilities to CARE D. Instruments with these ratings are in default or expected to default very soon. The rating agency has revised the rating of the company due to delay in servicing of debt obligations.

Den Networks rose 0.56% to Rs 63.10. The company announced strong Q1 June 2019 result after market hours yesterday, 11 July 2019. On a consolidated basis, Den Networks reported net profit of Rs 11.23 crore in Q1 June 2019 compared with net loss of Rs 30.72 crore in Q1 June 2018. Net sales fell 0.3% to Rs 313.15 crore in Q1 June 2019 over Q1 June 2018. The company reported a 2% rise in the subscription revenue to Rs 189 crore in Q1 June 2019 over Q1 June 2018. The consolidated EBITDA fell by 11% to Rs 41 crore during the stated period. The finance cost reduced over last 2 quarters mainly due to improved credit rating and pre-payments of loans.

K.P.R. Mill fell 2.29% to Rs 594.05. The company announced withdrawal of the proposed offer to buy back 37.50 lakh equity shares. The company said that the buyback offer has been withdrawn owing to the increase in the amount of buyback obligation due to the tax proposal in the Finance Bill 2019, which was neither contemplated nor prevailing at the time of the consideration and the approvals of the board and shareholders. The company said that it is not permitted to meet the buyback obligations beyond the amount approved by the board of directors and shareholders of the company and the same can also be affected only with the borrowed funds, which is prohibited by law.

Quess Corp rose 9.27% to Rs 480.95. The company said its board approved the preferential issuance worth Rs 51 crore at Rs 676 per share to NV Investment. The company will hold an extraordinary general meeting (EGM) of the company on 8 August 2019 for seeking approval of the members for the aforementioned preferential issue.

In the commodities market, Brent crude for September 2019 settlement rose 38 cents at $66.90 a barrel. The contract fell 49 cents or, 0.73% to settle at $66.52 a barrel in the previous trading session.

India currently imports around 80% of its oil and gas requirements, amounting to $150 billion. Firm crude oil prices raise concerns on fiscal deficit, inflation and gives less room for the government to boost growth through spending on infrastructure.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 68.655, compared with its close of 68.4425 during the previous trading session.

Overseas, most European markets were trading higher while most Asian stocks closed on a mixed note on expectations of a rate cut by US Federal Reserve later this month.

In US, the Dow and S&P 500 rose on Thursday to close at record highs as health insurers gained after the Trump administration scrapped a plan designed to rein in prescription drug prices, while financial shares climbed with bond yields.

Federal Reserve Chairman Jerome Powell testifying Wednesday before the House Financial Services Committee and Thursday in front of the Senate Banking Committee gave investors more hope that a rate cut is coming. The Fed has a two-day meeting on July 30-31.

An important reading of consumer price inflation rose 0.1% in May. Year-over-year, CPI inflation fell to 1.6% in May, from 1.8% in April, with core CPI rising to 2.1% in May, up from 2% in April.


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