· Weak opening in the Asian markets, marginally lower in the US Future and overnight fall in European markets, may open domestic market on a soft note. SGX Nifty slipped by 0.25% and US Dow Future declined over 100 points or 0.3% (US market was shut yesterday) . Anxiety about Chinese growth and the lack of fresh stimulus from Beijing pulled down Asian markets. In the morning today, People Bank of China's cut one-year loan prime rate (LPR) and five-year LPR by 10bps each, in line with expectation. European market declined 1% each as concern of UK short term bond yield spiked to 15-year high ahead of Bank of England (BoE) policy to be announce tomorrow. In the domestic front, expects range bound market today but stock specific action may continue. Yesterday, Index declined nearly half percent after inching closer to fresh record highs on account of profit-taking. However, undertone bullish sentiment in the market on account of strong domestic economy data, stable oil price and impressive direct tax collection will be positive for the market sentiment. US Housing data and along with two US Fed official statement will be in focus today. Expects positive for metal stocks after China cut loan prime rate. Defence stocks will be in focus as Prime Minister US visit commence from tomorrow on ahead of defence deal between US-India.
· US Market – Wall Street was shut for a holiday on Monday
· Global market summary –China's one-year loan prime rate (LPR) was cut from 3.65 per cent to 3.55 per cent, while the five-year LPR was also cut from 4.3 per cent to 4.2 per cent UK two-year yield climbs to 5% for first time since 2008, ECB Said to Signal Banks Face Harsher Stress Test Results.
· Asian Market –Asia market open on a mixed bag as investors digested China's loan prime rate decision, after its central bank cut some of its key lending rates. China slashed its one-year and five-year loan prime rate by 10 basis points each. Shares fell in Japan and South Korea, while stocks in Australia and Hong Kong equities inched higher.
· European Market - European stocks fell after their best week since April, as delays to a widely expected stimulus rollout in China stoked concern about a potential global recession. UK, Germany and France Index declined 1% each. The UK’s short-term government borrowing yield surged to 5% for the first time since the global financial crisis amid concern the troubling inflation outlook could lead to more aggressive monetary tightening from policymakers. The European Central Bank has signaled to lenders benefiting from the surge in interest rates to prepare for adjustments in the name of achieving more credible results.
· Oil – Brent Crude marginally lower at $76/bbl on concern that stimulus to revive China’s flagging economic recovery may fall short of expectations.
· Gold – Gold declined half percent to $1950/ounce as prospects for more tightening from major central banks and ebbing haven demand dimmed the outlook for the metal.
· Previous Day market Update –Equity benchmark indices reversed their early opening gains and closed in the red after inching closer to fresh record highs on account of profit-taking. Private bank, metal and auto stocks witnessed profit booking. Weak global cues had negative impact on the market. Both Asia and European markets took a breather after a strong rally last week as investors looked forward to China’s rate decision. The Fed chair's testimony, however, extended their rally to log record levels. Sensex declined 216 points or 0.34% to settle at 63,168 while touched intra-day high of 63575 (all time high of 63583). Nifty dropped 70 points or 0.40% to end at 18,755 while touched intra-day high of 18881 (all time high of 1888). Sector-wise, Nifty Private Bank, Auto Index, Nifty FMCG and Nifty Realty also closed over half percent lower. In the broader market, Nifty Midcap100 and Smallcap100 hit their new 52-week highs and managed to ended in the positive territory. Select PSU Bank Index gained nearly 1%. Kotak Bank, Axis Bank, Maruti, Bajaj Auto and Hindustan Unilever were major loser among the Nifty Index while HDFC Life, TCS, Bajaj Bajaj Finance, Bajaj Finserv and Tech Mahindra among the major gainers. Both FIIs and DIIs were net sellers Rs1030cr and Rs365cr respectively.
· Nifty Technical Levels – Nifty formed a Bearish Belt Hold sort of candle on daily frame and closed with losses of around 70 points. Supports are being respected and it has been making higher highs from the last five sessions but index is facing some pressure and profit booking at higher zones. Now it has to cross and hold above 18777 zones to witness an up move towards 18888 and 19000 zones while on the downside support exists at 18710 and 18676 zones.
· Bank Nifty Technical Levels – Bank Nifty formed a Bearish candle on daily scale as selling pressure was seen at higher zones and it relatively underperformed the broader market. Now it has to cross above 43750 zones for a bounce toward 44044 then 44250 zones while a hold below the same could see some weakness towards 43500 then 43333 marks.
· Actionable BUY – HAL, Nykaa, ICICI Prudential Life
· Brokers Radar – JB Chemical TGT by Jefferies at 2650, M&M TGT by CLSA at 1700. Nomura TGT on ITC at 485, CLSA TGT on Bharti Airtel at 1030, Morgan Stanley TGT on Bharti Airtel TGT at 870. Citi TGT on Sun Pharma at 1175.
· Events –Prime Minister visit in US. Block deal on HDFC AMC and Timken India,
· Corporate Action - Ex-dividend - Heidelberg Cement Rs7, Maithan Alloy Rs6, Automotive Corporation Rs15, Craftsman Automation Rs11.25, Hindustan Unilever Rs22, Bank of India Rs2, Blue Star bonus 1:1, Ceat Ltd ex-dividend Rs12,
· Global Data – Manufacturing Activities, Housing Starts, Building Permit (US), Producer Price Index (Germany). Retail Sales (France).
· Market Summary – HDFC to sell 90% of education subsidiary for Rs 9,060 crore, Timken India Holder Seeks $231 Million in Share Sale, Abrdn to sell its entire 10.2% stake in HDFC AMC through block deal, SEBI Bars IIFL Securities From Taking New Clients For Two Years Grasimand Lubrizol to set up 1st phase of 1 lakh MTPA CPVC resin facility , HPCL Signs Pact to Supply Natural Gas to OPaL’s Petrochem Plant, Axiscade Technologies announce overseas Acquisition. Airbus strikes record deal to sell 500 planes to India’s IndiGo.
· HDFC – Company has agreed to sell 90% of its stake in its education loan subsidiary, HDFC Credila, to Barings Private Equity and Chryscapital group for Rs 9,060 crore. The deal values the company at Rs 10066 crore.- positive
· Tata Power – Company has planned to double its capital expenditure to Rs 12,000 crore in the current fiscal, with a focus on renewables, distribution, transmission and solar equipment manufacturing capacity. – positive
· Timken India - Timken Singapore Pte Ltd offers 63lakh shares in Timken India in a vendor sale, according to terms of the deal obtained by Bloomberg News. The floor price has been set at 3,000 rupees per share, a 14% discount to Monday’s close of Rs3,488.70 – Long term buying opportunity.
· HDFC AMC - UK-based investment company Abrdn will sell 2.18 crore shares or its 10.2 percent holdings in HDFC AMC via block deals on Tuesday. The floor price for the sale has been fixed at Rs 1800-1892 per equity share, a 5 percent discount to the stock's closing price (CNV.- Any decline will be long term buying opportunity
· Lupin Ltd – Company has received the Establishment Inspection Report (EIR) from the US FDA for its API manufacturing facility located in Visakhapatnam (Vizag). The EIR was issued post the last inspection of the facility conducted from March 6 to March 10, 2023. The inspection closed with the facility receiving an inspection classification of "No Action Indicated" (NAI).- positive
· SEBI Bars IIFL Securities From Taking New Clients For Two Years - Market regulator SEBI has found that IIFL Securities misused and mixed client funds and has hence barred the brokerage from taking on new clients for two years.
· Royal Orchid Hotels – Company appoints Philip Logan as Chief Operating Officer – positive
· IndiGo – Company by placing a firm order for 500 Airbus A320 Family aircraft. This will provide IndiGo a further steady stream of deliveries between 2030 and 2035. This 500 aircraft order is not only IndiGo's largest order, but also the largest-ever single aircraft purchase by any airline with Airbus. – Long term positive
· ITI Limited – Company has signed a Tripartite MoU with Centre for Development of Telematics (CDOT), and Telecommunications Consultants India Ltd Limited (TCIL) recently as part of the larger efforts by the Government to synergize R&D efforts in the field of telecommunications aimed at establishing a frame work for cooperation between C-DOT, TCIL, and ITI in creation and delivery of innovative telecommunication products and related services for Smart Cities. – positive
· Zydus Lifesciences – Company has received final approval from the USFDA for Minocycline Hydrochloride Extended-Release Tablets – positive
· ITC – Company has entered into definitive agreements to acquire further 857 Compulsorily Convertible Preference Shares of ₹ 10/- each of Mother Sparsh for an amount of ₹ 11.54 crores (approx.).- positive
· 3i Infotech – Company has been awarded contract by one of leading Indian Private Sector Bank, for Managed Services Partner for Data center Domain. Total contract value is approximately Rs. 42.60 crore, spread across two years.- positive
· Isgec Heavy Engineering – Company has enhanced the production capacity of its Ethanol Plant from 100 Kilo Liter Per Day to 160 Kilo Liter Per Day and the enhanced capacity has come into commercial production on June 18, 2023, after obtaining all statutory approvals – positive
· Bharat Agri Fert & Realty – Company has received the Sanction of Development from Thane Municipal Corporation for the construction project "Shiv Sai Paradise, Phase 11, Majiwada, Thane – Positive
· Taparia Tools Ltd fixes July 11, 2023 as record date for 4:1 bonus issue- Positive
· Vikas Ecotech Limited ompany has bagged fresh orders for Specialty Compounds valued at an Approx Rs9cr – positive
· Maruti - commences pre-launch bookings for its latest premium 3-Row UV, INVICTO, in the NEXA channel. The INVICTO marks Maruti Suzuki's grand entrance into the premium 3-Row segment, expanding the already diverse NEXA product lineup – Positive
· Som Distilleries – Company has commenced trial production with the enhanced capacity at the Odisha Plant. This marks an exciting milestone for the company as its expands product offerings and increases production capabilities. The commercial production is expected by early next month. – positive
· Zee Entertainment – Tribunal to hear Zee appeal next on June 26 – expects volatile on the stock
· Grasimand - Both the Company and Lubrizol now reaffirm that the construction of the first phase of the world's largest single-site state-of-the-art 1lakh mt CPVC resin facility in Vilayat, Gujarat, will commence in later part of the year 2023. Earlier, projects was delayed due the unprecedented global COVID outbreak and its consequences, such as supply chain disruptions – positive
· Zydus Life – Company gets USFDA approval for generic of Solodyn tablets – Positive
· Laurus Labs – Company to in-license gene therapy assets, provide research grant to IIT Kanpur for advancing gene therapy products Additionally, the company will establish a GMP facility at the Techno Park of IIT Kanpur. – Long term positive
· Lupin – Company has announced the launch of its Thiamine Hydrochloride injections in U.S.A. Company along with alliance partner Caplin Steriles had received the drug approval from the U.S. FDA – positive
· Axiscade Technologies - Company announced to acquire 100% stake in Add Solution GmbH late on Friday, Jun. 19, 2023. Looking for a strategic foothold in the automobile space along with offshoring opportunities, the company had announced its acquisition of the German automotive solution provider for 5.5 million euros (Rs 49.27 crore). - positive
· Axis Bank: Axis Bank appointed former RBI Deputy Governor NS Vishwanathan as non-executive part-time chairman with effect from Oct. 27. – positive
· Trident: The company’s unit, Trident Home Textiles, incorporated a wholly-owned subsidiary, Trident Global B.V., in the Netherlands. Trident Global will carry out the wholesale business of textiles, paper, non-food consumer goods, and clothing accessories. – positive
· HPCL– HPCL has won a contract to supply 13.53 trillion Btu of natural gas to ONGC Petro complex at Dahej unit. HPCL will supply the gas from October this year to May 2026. – long term positive
· Asian Energy – Company wins orders from ONGC worth Rs78.24cr - positive
· IRCTC – Company said it will not face any competition from Adani Group's acquisition of Trainman.Trainman is one of the 32 business-to-consumer partners of IRCTC, contributing 0.13% of the total reserved ticketing volumes – Positive
· Rites - Zimbabwe’s rail utility and an Indian firm have signed an $81mn deal under which the latter will supply 315 wagons and nine locomotives to the African country. The National Railways of Zimbabwe (NRZ) and the Rail India Technical and Economic Service (RITES) inked the agreement for deal. – Positive
· Adani Transmission - Company may achieve financial closure of Rs 1,700 crore for its Mumbai power project by July-end. A consortium of nine multinational institutions is providing the funding through an international construction facility. The funds will be used to build a 400 kV substation and transmission lines in Maharashtra.
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