· Expects market to open on a flat note on account of mixed bag opening in the Asian markets and marginally positive on US Future. Domestic sentiment remain robust on account of monsoon deficiency sharply decline this month from 47% to 28%, S&P Global ratings agency saying India will be the fastest-growing economy among Asia Pacific nations and stable inflation will be positive for the market sentiment. SGX Nifty is up 30 points or 0.1%. Overnight, US Tech Index major Nasdaq Composite slipped over 1% after the Fed Chair Jerome Powell reiterated last week that the US may need one or two more rate increases in 2023, to bring down inflation at 2%. Expects market would be rangebound as June F&O series expiry is scheduled on Thursday and market will be close tomorrow. While a good news for Indian markets, as per IMD the Monsoon deficiency has down to 28% from 47% in a week which means a buy on dip is around the corner. Nifty’s 200 DMA at 17929 mark. Yesterday, market ended flat but mid-cap and small cap Index soared 1% each. Nifty 500 stocks advance decline ratio was favorable at 2:1. Expects rally to continue on mid-cap and small cap stocks. Pharma stocks rally may continue and hope of good monsoon will be positive for tractors stocks.
· US Market – US stocks declined as investors assessed whether central banks will need to raise interest rates higher than expected, furthe r hampering a decelerating economy. The S&P 500 Index fell 0.5% and those on the tech-heavy Nasdaq 100 closed 1.4% lower. Dow Jones ended marginally lower
· Global market summary – US 2-Year and 10-Year Bond Yield marginally decline. US Vix gained 6% to above 14. Gold fell to 3-momth low.
· Asian Market – Asian shares fell for a seventh day Tuesday after US stocks slid amid concern that the Federal Reserve and its peers around the world will push economies into recession. The region’s equity gauge is now on its longest losing streak in a year. Japan Index slipped 1%. Taiwan, South Korea and Australia Index fell 0.5% each. However, Hong Index is up 0.50%
· European Market –European equities were steady after falling the most since mid-March last week, as investors mulled the risks from an attempted armed uprising in Russia and focused on the outlook for economic growth and monetary policy. Germany, France and UK Index bounced back into positive territory.
· Oil – Oil steadied as jitters from the short-lived armed uprising in Russia gave way to persistent concerns over the demand outlook. Brent Crude is trading flat at $74/bbl.
· Gold – Gold was steady at $1923/ounce near a three-month low on prospects for more interest-rate hikes from major central banks.
· Previous Day market Update –Equity benchmark Nifty Index managed to ended in positive territory after a fall of last two trading sessions amid buying interest on pharma, auto, realty and shipbuilding stocks. Weak global markets and ahead of June series F&O expiry kept the domestic bourses in a narrow range for most part of the day. Nifty was moving merely in a 70 points or 0.50% range between intra-day high of 18722 and low of 18646. However, there was stocks specific action in the markets and action shifted to mid-cap and small cap counters. Both Nifty small and mid-cap index gained 1% each. That’s why Nifty 500 stocks advance decline ratio was favorable at 2:1. Nifty advance 26 points to close at 18691 while Sensex marginally decline by 9 points to close at 62970. Among the global markets, both Asia and European equities dropped for a sixth day after falling the most since mid-March last week, as investors mulled the risks of geo-political tension in Russia, concern of outlook for economic growth and monetary policy tightening. US market on Friday declined up to 1% and US Future slipped nearly 0.5%. Hawkish signals from the US Federal Reserve and other major central banks revived concerns that higher borrowing costs threaten to tilt the economy into a recession. Yesterday, FIIs were net sellers Rs409cr while DIIs were net buyers Rs250cr
· Nifty Technical Levels – Nifty formed a Doji sort of candle on daily frame and respected its previous day’s lower zone. Now it has to hold above 18666 zones to witness an up move towards 18750 then 18888 zones while on the downside support exists at 18550 and 18500 zones.
· Bank Nifty Technical Levels – Bank Nifty formed a small Bearish candle on daily scale and trading in between 20DEMA and 50DEMA from past seven sessions. Momentum is missing on either side as selective Banking stock continue to underperformed and it closed in marginal gains near 43650 zones. Now it has to continue to hold above 43500 zones for a bounce towards 43800 then 44044 zones while a hold below the same could see some weakness towards 43333 and 43250 marks.
· Actionable BUY – IRCTC, Raymond, Cyient, M&M, Aurobindo Pharma, Zomatao
· Brokers Radar – Macquarie TGT on Paytm at 800, Nomura TGT on Hindustan Unilever at 3025, Chola Investment TGT by Citi at 1200. Cipla TGT by Citi at 1110.
· Events – National Company Law Tribunal (NCLT) hearing on Zee Entertainment, Cyient DLM IPO with price range between Rs250-265. Bajaj to lauch new bike at London, HAL board meeting for dividend and stock split. Idea Forge IPO subscribed nearly 4 time on Day1, Cricket world cup date will be announce today in India.
· Corporate Action - Supreme Petrochem Rs7, Bajaj Hindustan AGM, Bombay Oxygen Rs15, Sagarsoft Rs2,
· Global Data – Durable goods orders, New Home sales, Dallas Fed Service Activities (US)
· Market Summary – ICICI Pru Life gets GST demand notice for Rs 492 cr, Delhi Power Regulator Allows Distribution Companies To Charge Higher Tariff, Monsoon deficiency down to 28% from 47% in a week, Infosys Strikes $450-Million Deal With Denmark's Danske Bank, Aditya Birla Capital launches QIP, floor price set at ₹175.9 per share, Sapphire Foods India Holder Seeks Up to $51m in Placement
· ICICI Prudential Life – Company said it has received a GST demand notice of Rs 492.06 crore from tax authorities.
· Sapphire Foods India block deal – Major shares holder WWD Ruby is offering 3m shares of Sapphire Foods India Ltd. at Rs1,345 to 1,391. Price range represents 0% to 3.3% discount to last close on NSE - Avoid
· Aditya Birla Capital – Company announced that the company has launched a qualified institutional placement (QIP) issue at Rs175.99 a share worth Rs1250cr. The issue opened on
· 26 June, 2023.- Positive for fund raising
· HDFC – Company sells Mumbai land Marg (LBS Marg), Bhandup to Lodha for Rs 70 crore to recover dues from borrower. – Positive
· Power stocks Focus - The Delhi Electricity Regulatory Commission has allowed power distribution companies to levy higher tariffs—over and above the prevailing rates—to adjust the higher cost of power purchased, till next March. BSES Yamuna Power has been allowed to hike its tariff by an additional 9.42%, over and above the prevailing rate of 22.18%. – Expects positive for Tata Power
· Railtel Corporation – Company wins Rs294cr order from Tamilnadu for a period of five years– Positive
· IRCTC - Prime Minister Narendra Modi will flag off 5 new semi-high speed Vande Bharat Express trains on June 27. The new 8 coach Vande Bharat Express trains will be launched on 5 new routes; Mumbai-Goa, Indore-Bhopal, Patna-Ranchi, Jabalpur-Rani Kamlapati and Bengaluru-Hubballi-Dharwad. – Expects positive for IRCTC.
· Bharti Airtel - The Chief Executive Officer of Bharti Airtel's enterprise arm, Airtel Business, Ajay Chitkara, has resigned from the company, according to a filing. Following the resignation, Bharti Airtel has restructured leadership in the enterprise arm by dividing it into three segments – We are long term positive on Bharti Airtel
· Monsoon deficiency decline - The monsoon rains in the last couple of days have brought down the cumulative rainfall deficiency during June 1-25 to 28% of the benchmark long period average (LPA) from 47% reported a week ago. – Expects positive for auto stocks – M&M, Escorts.
· S&P Global Ratings on June 26 retained India's GDP growth forecast at 6% saying India will be the fastest-growing economy among Asia Pacific nations. – Positive for the market sentiment.
· Focus on Cyient – Company’s subsidiary (holding 92%) Cyient DLM Limited is going to hit primary market today. The public issue worth Rs592 crore will open for bidding till 30th June 2023. The company management has fixed Cyient DLM IPO price band at Rs250 to Rs265 a share.
· Rating agency S&P Raises Long-Term Issuer Credit Ratings on Union Bank of India, Bajaj Finance, Shriram Finance Ltd., and Hero FinCorp – positive.
· Cyient, Ltd - Company announced that it has fully integrated the Finland based acquired entity, Citec, into Cyient. As one of the final steps of the integration process - Positive
· Sun Pharma Advanced Research – Company’s parent reported “promising” results from the trial of a drug being tested for type-2 diabetes and obesity. The company said drug GL0034, discovered and developed by Sun Pharma, reduced body weight after a single dose in obese individuals without diabetes in its Phase-1 trial - Positive
· Zee Entertainment – SAT defers hearing on Subhash Chandra, Punit Goenka's appeal challenging Sebi's interim order till 27 June.
· REC - State-owned Maharatna company, has decided on extending financial assistance of Rs 3,045 crores to Bangalore Metro Rail Corporation, for the establishment and development of lines under the Phase-II metro project – Positive .
· Infosys - Infosys has won a $450mn digital transformation contract from Denmark's Danske Bank A/S for five years. The company will deploy Infosys Topaz, its recently launched Generative AI suite of services, to transform the IT operations of Danske Bank globally. – positive
· Rail Vikas Nigam Targets Orders Worth Up To Rs 1 Lakh Crore In Next One Year – Company has an ambitious plan of garnering orders totalling Rs 75,000-Rs 1,00,000 crore in the next one year, according to Rajesh Prasad, its director of operations. It takes on railway projects—such as installing new lines, railway electrification, metro projects, workshops, bridges—on a turnkey basis. – positive
· Tilaknagar Industries'- Flagship brand Mansion House Brandy became the world's fastest-growing brandy and the second-fastest growing alcoholic beverage brand, across categories, globally in the year 2022. Mansion House Brandy recorded an impressive year-on-year growth of 57.8 per cent in 2022 – Positive
· Zydus Life - Its wholly owned subsidiary, Zydus Animal Health and Investments Ltd., will acquire the stake for Rs 106 crore from Rising Sun Holdings Pvt.—an investment firm owned by Adar Poonawalla, chief executive officer of Serum Institute of India Pvt – Positive
· L&T Technology – Company and BSNL have signed an agreement to enable private 5G network deployments for global enterprises. - positive
· L&T – Company wins significant orders in range of Rs 1,000-2,500cr for Power Transmission Business - positive
· EPC India stock split - The board of office spaces provider EFC (India) has approved the sub-division of equity shares of the company from face value of Rs10 each to a face value of Rs2 rupees each
· Capacity Infra – Company secured an order worth Rs452cr from an undisclosed client for the construction of a residential and commercial tower in the National Capital Region – Positive
· Ajanta Pharma - Company's formulation facility at Dahej was inspected by US FDA from 19th June 2023 to 23rd June 2023. At the end of inspection, no Form 483 was issued to us. - positive
· Adani Power – Company has commenced operations at the 800 MW Unit 2 of Godda Thermal Power Plant. The plant will export entire power generated to Bangladesh as part of an existing 25-year contract with the country's Power Development Board
· MIC Electronics – Company receives LoA for order worth Rs. 5.13cr from Jabalpur Railway Division, installation, testing and commissioning of passenger amenities at 15 Stations of Jabalpur division – positive
· Bigbloc Construction - Company's JV inks agreement for Supply of Machinery & Technical Service. The Contract is executed for Supply of Machinery and Technical Service for Autoclave Aerated Concrete Blocks (AAC) Plant. – positive
· TCS – Company has entered into a strategic partnership with Standard Life International DAC, a wholly owned subsidiary of the Phoenix Group, to transform its operating model and enhance the customer experience for its policyholders in Europe, using the TCS Digital Platform for Life and Pensions, powered by TCS BaNCS™. – long term positive
· Vedavaag Systems – Company have been allotted additional 2000 Customer Service Points (CSPs) by State Bank of India. These Customer Service points will be rolled out during the financial year 2023-24. Vedavaag Systems Limited has been continuously ranking as one of top three best performers of SBI banking correspondents for the last four years – Avoid
· RattanIndia Power has refinanced its senior debt in a Rs 1,114 Crores transaction led by Kotak Mahindra Bank – positive
· Vishwaraj Sugar – Company pact with oil marketing companies IOC, BPCL, HPCL for supply of 12mn litters Ethanol – Positive
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