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Wednesday, June 7, 2023

News and Impact

News and Impact
 
 
·       Expects market to open on a positive note on account of rally in the global market while investors awaited inflation data and the Federal Reserve's policy meeting to be announce next week. Hope of US Fed and RBI to keep unchanged interest rate amid expectation of China to announce stimulus package will be positive for the market sentiment. US S&P 500 Index closed its highest level in 10 months and the Nasdaq Composite finished at a 14-month high, as investors wait for May inflation data due next week, just ahead of the Federal Reserve's June.  US Mid-cap index major, Russel 2000 Index climbed up by 2.5% yesterday. Expectations that the US Fed will pause its monetary tightening at least temporarily. As a result, US Vix declined by 5% to close at below 14. Asian markets are witnessing mixed bag and SGX Nifty is up quarter percent. In the domestic front, expectation that the RBI may keep unchanged interest rate on account of stable domestic inflation. Positive factor that the FIIs were net buyers nearly Rs400cr yesterday after a net sellers in the last three trading sessions. Expects stock specific action in the market and traders focus on mid-cap and small cap counters. Focus on interest sensitive sectors like auto, financials and real estate stocks on ahead of RBI credit policy to be announce tomorrow . Expects rally to continue on defense stocks.
 
·       US Market   –U.S. stocks marginally gain on Tuesday as investors wait for May inflation data due next week just ahead of the Federal Reserve's policy meeting now that the federal debt ceiling issue has been resolved. US S&P 500 Index closed its highest level in 10 months and the Nasdaq Composite finished at a 14-month high
 
·       Global market summary – Both US 2 years and 10-year bond surged by 1% to 2-week high ahead of US policy outcome next week. US Vix slipped 5% to close at below 14.
 
·       Asian Market – Asian stocks are witnessing mixed bag today, with hopes for stimulus in China, a positive sign in geopolitics and hints of more broad-based strength in US shares bolstering sentiment. Benchmark indexes were higher at the open in South, Korea, Taiwan and Australia while Japan Index marginally decline.
 
·       European Market – European stocks rose on Tuesday, boosted by strength in health care stocks, while chipmakers led the tech sector lower after a glum outlook from Taiwan Semiconductor Manufacturing Co. UK, Germany and France Index gained nearly quarter percent each.
 
·       Oil –  Brent Crude gained 1% to above $76/bbl after the news of fall in US inventory. The American Petroleum Institute (API) on Tuesday reported a decrease of 1.71 million barrels of crude oil in U.S. inventories for the week ending June 2.
 
·       Gold –   Gold futures rose 1% to $1965/ounce as investors assessed the outlook for interest rates ahead of next week's meeting of Federal Reserve policy
 
·       Previous Day market Update –. Equity benchmark index recovered from lows but ended flat after a 2-day rally as a slide in IT stocks overshadowed the gains in auto, cement,  real estate and private bank stocks amid hopes of a rate hike pause by the US Federal Reserve and ahead of RBI credit policy to be announce in the next couple of days. Sensex gained 5 points or 0.01% to settle at 62,793 while touched intra-day low of 62554. Nifty rose 5 points or 0.03% to end at 18,599 while touched intra-day low of 18532. Global markets were mixed today after a report that showed growth in service industries is slowing stoked concern the US economy is weakening. Ultratech, Maruti, Divi’s Lab, Kotak Bank and Grasim were major gainers while TCS, Tech Mahindra, HDFC twins and Infosys were among the major losers Nifty stocks. Nifty auto Index climbed up by 1% while Nifty it Index slipped 2%. small- and mid-sized companies extended their record runs as investors looked to rotate allocations following the end of the earnings season.  FIIs were net buyers Rs386cr while DIIs were net sellers Rs489cr yesterday.
 
·       Nifty Technical Levels – Nifty formed a Doji sort of candle on daily scale with longer lower shadow indicating support based buying on declines. Now it has to continue to hold above 18580 zones to witness an up move towards 18666 and 18750 zones while on the downside support exists at 18480 and 18442 zones.
 
·       Bank Nifty Technical Levels – Bank Nifty formed a Doji sort of candle on daily scale as buying interest was seen at lower zones. Overall it remained consolidative in narrow range of 200 points as selective private banks continue to hold the Index while few public banks remained lacklustre . Now it has to continue to hold above 44044 for an up move towards 44500 then 44750 zones while on the downside support exists at 44000 and 43750 zones.
 
·       Actionable BUY – HAL, Mazagoan Dock, Paras Defense, GMR Infra
 
·       Brokers Radar – ONGC TGT by Goldman at 160. Goldman Sachs TGT on Reliance Industries at 2890 and Nomura TGT at 2850.  Eicher Motor TGT by Morgan Stanley at 3533 and Citi TGT at 4800. Kotak Bank TGT by Morgan Stanley at 2215. ITC TGT by JP Morgan at 475.
 
·       Events – Final day of MPC meeting on of ahead of RBI Credit policy to be announce tomorrow, IKIO IPO subscribed by 1.5 time. Australia and India test champion final at London. Cabinet and CCEA meet
 
·       Corporate Action  - Tata Power Rs2.00, Uniparts India Rs6, Seshasayee Paper - AGM and ex-dividend Rs6
 
·       Global Data – Mortgage Application and Trade Balance (US). Trade Balance and Current account balance (France).
 
·       Market Summary – Bajaj Finserv enters mutual fund business, NSE changes Nifty Bank F&O expiry day to Friday, Aditya Birla to Invest $605M on Branded Jewelry Retail Foray, NTPC Declares Second Part of Solar Power Project in Gujarat, Bharti Airtel Bags Mandate to Power Indian Government's, Germany May Build India Submarines - Mazagon Dock likely to jointly bid for an estimated $5.2bn, NHPC Signs Accord for 7.35GW Clean Energy Projects
 
·       Mazagoan Dock  - Germany and India are closing in on a deal to build diesel submarines. Thyssenkrupp AG’s marine arm and India’s Mazagon Dock are likely to jointly bid for an estimated $5.2bn project to build six submarines for the Indian navy, according to people with knowledge of the matter. The preliminary agreement or memorandum of understanding will be signed in the presence of Defense Minister Boris Pistorius who arrived in New Delhi Tuesday for a two-day visit, German and Indian officials said.
 
·       GMR Infra - GMR Group on 6 June announced divestment of an 8,18,000 sqft warehouse facility located at Hyderabad's Rajiv Gandhi International Airport.- positive
 
·       Bank of Maharashtra – Company’s QIP price settelted at Rs28.50 worth Rs1000cr (CMP Rs30) - positive
 
·       Bajaj Finserv – Company is entering the highly competitive mutual funds business and has plans to make it big over the next few years, drawing in on the 'late mover advantage'. To begin with, the company is launching three schemes in the fixed income, liquid and money market products by the end of the month – positive
 
·       Torrent Power – Company signed a MoUs with the government of Maharashtra for development of pumped hydro storage projects. A statement by Torrent Power said that the projects would entail an investment of about ₹27,000 crore – long term positive
 
·       NHPC has signed a MoU with the Maharashtra state in western India for building 7,350MW of clean power projects.  The projects include solar, wind, hybrid and pumped hydro energy storage capacity - Positive
 
·       Aditya Birla to Invest $605M on Branded Jewelry Retail Foray - Aditya Birla Group is foraying into the branded jewelry retail business in India, the world’s second- biggest bullion market, with an investment of around Rs5000cr ($605mn).
 
·       NTPC Declares Second Part of Solar Power Project in Gujarat -  NTPC has declared the second part capacity of 10 MW of its 20 MW Gandhar Solar PV Project in Gujarat as commercially operational. The first portion capacity of 10 MW was declared commercially operational in August 2022. With this development, the standalone installed and commercial capacity of NTPC increased to 56,378 MW – positive
 
·       Man Industries – Company to consider stock split and bonus on June 9 board meeting
 
·       Government has earned Rs4185cr through the sale of a 3% stake in state-owned miner Coal India. With the divestment through offer-for-sale, the holding of the government in Coal India has come down to 63.13%.
 
·       Thermax -An arbitration panel ruled against the turbine and boiler maker in a matter related to breakdown of two gas turbo generators at one of its customers.  The award would have an estimated financial impact of about Rs 250 crore. – Stock decline 3% yesterday …We are long term positive on the stock
 
·       TCS  - Company launches data exchange and marketplace platform Dexam on Google Cloud. Dexam is a software-as-a-service product that enables data exchange across enterprises and ecosystems. - positive
 
·       Man Infra  (MICL)– Company announces luxury residential project In Ghatkopar, Mumbai.  The project has an estimated revenue potential of Rs 1,200 crore and it is expected to be completed in four years. – positive
 
·       L&T – Company wins significant category order worth Rs 1,000 to Rs2,500cr. The EPC contract entails construction of the tallest building in India with a height of 300.5 meters. - positive
 
·       IndiGo: IndiGo aims to carry 100 million passengers in the year ending March 2024, as the carrier adds more domestic and international routes, its CEO Pieter Elbers said. – positive
 
·       Hindustan Unilever: The fast-moving consumer goods player Hindustan Unilever (HUL), in an interview to a TV channel, said that it will soon cut prices of soaps, detergents, and shampoos over the next few weeks.
 
·       Indoco Remedies – Company a fully integrated, research based pharma company with a strong global presence has acquired 85% of equity stake of the US based FPP Holding Company, LLC ("FPP Holding") for USD 4 Million from Contract Pharmacal Corp. ("CPC"). – positive
 
·       NSE changes Nifty Bank F&O expiry day to Friday - The National Stock Exchange of India has decided to change the Bank Nifty Futures and Options (F&O) expiry day to Friday from Thursday. The new rule will come into effect from July 14.
 
·       Bharti Airtel Bags Mandate to Power Indian Government's - Bharti Airtel secured the cloud and content delivery network mandate from the Digital India for the Digital Infrastructure for Knowledge Sharing platform, India’s national platform for open education digital content. – positive.
 
·       Advait Infratech – Company has received an order for OPGW installation work on 20th May, 2023 worth Rs. 30.27 Crores. – positive
 
·       Valiant Organics- Company's subsidiary Valiant Laboratories Ltd files DRHP with SEBI for IPO – positive
 
·       G R Infraprojects: Company’s unit GR Hasapur Badadal Highway executed concession agreement to construct six lane Surat-Nashik-Ahmednagar-Solapur- Maharashtra/Karnataka border greenfield stretch on hybrid annuity mode at a bid project cost of Rs 872.17 crore.  – positive
 
·       Hardwyn India: Company allots 8.72 crore equity shares as fully paid bonus shares to existing shareholders of the company in 1:3 ratio.  - Positive
 
·       Ugro Capital: The Board has allotted 2,500 Non-Convertible Debentures with a face value of Rs 1 lakh each through private placement. - positive
 
 
 

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