· Expects market to open a flat note on ahead of key RBI credit policy to be announce today (expected time 10am). Expectation of RBI to keep unchanged interest rate while RBI commentary will be important for the market sentiment. SGX Nifty is trading flat to positive. Technically, Nifty has given a range breakout on daily frame and gave the second highest ever close. Nifty just less than 1% or 160 points lower of all time high. Yesterday, Nifty close at 6-month high of above 18700 level and Sensex topped above 63k for first time in 2023. Expects higher intra-day volatility today on ahead of RBI policy outcome and weekly Nifty and Bank F&O expiry. Positive factor that the FIIs were continued buying in Indian equity and net buyers nearly Rs1400cr yesterday. Moreover, IMD forecast monsoon may Start in 48 hours, better than expected PMI, GDP and auto monthly sales will be positive for the market sentiment. Among the global markets, U.S. stocks ended mostly lower (Nasdaq slipped 1%) on Wednesday, feeling pressure after the Bank of Canada unexpectedly raised interest rates by 25bps after a long pause, sparking concern the US Federal Reserve also might not be done tightening policy. US 10-year and 2-year bond yield spiked by 2% yesterday. Moreover, the U.S. trade deficit jumped 23% in April to a six-month high of $74.6 billion is also concern in the global markets. However, small cap index major Russel 2000 index soared by 1%. Euro zone and Japan GDP data will be announce today. Traders focus on interest sensitive sectors like auto, nbfc and realestate on ahead of RBI policy today. Expects momentum to be continue on defence stocks.
· US Market –A drop in tech shares drove US equity indexes lower, while Treasuries retreated after a surprise Bank of Canada rate increase fueled bets the Federal Reserve is not done with its own tightening. The tech-heavy Nasdaq indexes fell more than 1%, with the likes of Alphabet Inc. and Microsoft Corp. off at least 2.5% while Dow Jones managed to ended positive territory.
· Global market summary –US Yields on the policy-sensitive two-year rose more than 8 basis points to 4.56% as traders drove up bets for a quarter point hike in US interest rates by July.
· Asian Market – Asian markets are poised to open lower in the wake of a slide on Wall Street as traders boosted bets on a U.S. rate hike after a surprise increase by the Bank of Canada. Shares in Australia, Japan and Hong Kong, Taiwan Index marginally decline. Japan GDP data to be announce today.
· European Market –-- European shares were steady as strong updates from Zara-owner Inditex SA and Danske Bank A/S failed to stir a risk-on mood among investors watchfully preparing for key central bank meetings next week. UK, Germany and France Index ended flat to negative. Policy decisions are due from the Federal Reserve and the European Central Bank next week.
· Oil – Oil futures rose 2% to above $77/bbl, finding support after data showed China's crude imports rose in May and fall in US Inventory.
· Gold – Gold slipped over 1% to $1945/ounce after the spiked in US bond yield on ahead of US rate decision to be announce next week.
· Previous Day market Update –. There was renewed buying in TCS, Bajaj Auto, Reliance, Titan, L&T that lifted Nifty over 100 points to close at 6-month high of above 18700 level and Sensex topped above 63k for first time in 2023 ahead RBI credit policy to be announce tomorrow. Auto, metal, FMCG, sugar, real estate, mid and small cap stocks were major gainers today. IMD forecast monsoon may Start in 48 hours, FIIs turned into net buyers yesterday after net sellers in the last three trading sessions and hope of RBI to keep unchanged interest rate in the tomorrow credit policy meeting have positive impact in the market. Moreover, better than expected PMI, GDP and auto monthly sales boosted the market sentiment. Among the global market, Bigger-than-expected drop in Chinese exports and disappointing Germany economy data pulled down European Index. However, Asian markets ended mixed bag after the China announced stimulus to boost its economy. Nifty rose 127 points or 0.6% to end at 18726 and Sensex advance 350 points (0.6%) to close at 63143. Nifty 500 stocks advance decline ration was remain strong at 3:1. Both FIIs and DIIs were net buyers Rs1383cr and Rs392cr respectively.
· Nifty Technical Levels – Nifty formed a Bullish candle on daily scale with longer lower shadow indicating support based buying at any minor dip. Index has given a range breakout on daily frame and gave the second highest ever close. Now it has to continue to hold above 18666 zones to witness an up move towards 18800 and 18888 zones while on the downside support exists at 18636 and 18580 zones.
· Bank Nifty Technical Levels – Bank Nifty relatively underperformed the broader market and remained consolidative in narrow range of 200 points. Now it has to continue to hold above 44144 zones for an up move towards 44500 then 44750 zones while on the downside support exists at 44044 and 43750 zones.
· Actionable BUY – Tata Steel, Olectra, ITI, Heramba Industries, Sona Comstar, Tata Motor
· Brokers Radar – Morgan Stanley on Oil marketing companies - HPCL TGT at 249, BPCL TGT at 425 and IOC TGT at 111. Morgan Stanley TGT on Zomato at 85.
· Events –RBI Credit policy, Nifty and Bank Nifty weekly expiry. IKIO IPO subscribed 6.8 times in DAY-3, NIIT Ltd de-merger
· Corporate Action - Tata Power Rs2.00, Uniparts India Rs6, Seshasayee Paper - AGM and ex-dividend Rs6
· Global Data – Consumer Credit, Initial Jobless Claims and Household data (US). Housing Price Index (UK). Industrial Production (Germany). Eurozone GDP and Japan GDP data.
· Market Summary – Thyssenkrupp Bids For $5.2bn Indian Submarine Contract with Mazagoan Dock. Tesla sets up for India entry for electric vehicles, Monsoon Rains May Start in 48 Hours, Cabinet okays $11 billion revival plan for state-owned BSNL, Monsoon Rains May Start in 48 Hours, Founder Firm Buys $17.8M Worth of Adani Ports Shares, HCL Technologies launches advanced testing facility for 5G Infrastructure.
· Interest sensitive sectors to be focus ahead of RBI Policy today - expected time 10am– Bank, auto and real estate stocks will be focus ahead of the Monetary Policy Committee decision on policy repo rate. MPC is likely to continue its status quo on the key lending rate at its second meeting in the new fiscal, amidst easing inflation and resilient growth. Expectation that the RBI to keep unchanged interest rate and may hike GDP growth forecast after a strong quarterly GDP reported during the month of May.
· Aether Industries – One of India's leading speciality / fine chemical manufacturer and preferred provider of Contract Research and Manufacturing Services, has today signed a Letter of Intent (LoI) with one of the top 3 leading global Oil Field Services companies based in USA towards the finalization of a strategic supplier and contract manufacturing partnership – Positive
· Mazagoan Dock - European defense manufacturer Thyssenkrupp Marine Systems and India’s Mazagon Dock Shipbuilders Ltd are set to construct submarines for India worth nearly Rs48000cr, signaling the country’s growing importance as ties between China and Russia deepen. – positive
· Stove Kraft: Chief Financial Officer Balaji A S has resigned from the company citing personal reasons. The company is in the process of hiring a professional for the position of chief financial officer – Avoid.
· Tech Mahindra – LIC Insurance Corp. has picked an additional stake in Tech Mahindra Ltd. at a time when the software services firm is staring at stagnant growth.The state-run insurer increased its stake in India’s fifth-largest IT services firm to 8.89% from 6.87% earlier at an average share price of Rs 1,050.77 – Positive
· Tata Elxsi - Company expands its automotive and smart mobility focus in North America with an Innovation Hub and nearshore engineering centre in Troy, working with some of the leading OEMs, suppliers, and automotive ecosystems in the region.- positive
· Adani Ports Shares - Resurgent Trade and Investment, a Mauritius-based investment fund related to the Adani Group’s founders, bought 2 million shares of Adani Ports on June 6, according to data from the BSE. The value of the shares bought was disclosed as Rs147cr or $17.8mn
· Monsoon update - Monsoon rains will likely start in 48 hours after a severe storm delayed the weather event vital for the economy. Conditions are becoming favorable for the onset of monsoon over Kerala –IMD said .- Expects positive FMCG (HUL, Dabur India, Tata Consumer), auto (Herpo Motocorp, TVS Motor, Tata Motor, Maruti) and NBFC (M&M Finance)
· HCL Technologies– Company announced the launch of advanced testing facility lab in Chennai for developing 5G infrastructure. The lab is currently equipped to test 5G telecom antennas for frequency bands up to 7 GHz - positive
· KPI Green Energy - Company recieves LOI for 40 MW hybrid power project from Anupam Rasayan India. The hybrid project has 21.50 MW wind and 18.50 MW solar capacity
· Venus Remedies – Company receives Ukrainian GMP approval for Carlapenem and Oncology production facilities in Baddi. Company is looking to expand in other EU markets after Ukrainian GMP approval – positive
· Persistent Systems - Company is strengthening its relationship with Amazon Web Services (AWS) and becoming a collaborator for the latest Generative AI services from AWS. As part of its goal to drive developer productivity. – Positive
· Nelco – Company announced its investment in Piscis Networks Pvt an OEM and one of the pioneers in providing Software Defined Wide Area Network that improves network performance and reliability. This investment is an important step for Nelco to expand its service portfolio and elevate its position as an integrated network solution provider. This also reinforces Nelco's commitment to deliver comprehensive and innovative satellite communication solutions to its customers. – Positive
· Infosys – Company announced a new Proximity Centre in Oslo, Norway as part of its continued expansion plan in the Nordics. The new state of the art centre will enable Infosys to attract, re-skill, and upskill local talent to work on global opportunities through next-gen technologies like cloud, AI, IoT, 5G, and software engineering. – positive
· Wardwizard Innovations - Leading manufacturers of electric vehicles under the brand name "Joy e-bike', announced during this period, the company has successfully sold 993 units of electric two and three-wheelers.- positive
· Aurionpro - Company launched its first homegrown EMV Card Type Payment terminal (ECR-one) at the UITP Global Public Transport Summit, the world's leading conference and exhibition, being held in Barcelona, where public transport professionals converge to exchange ideas, foster innovation, and establish valuable connections. – positive
· Maruti Suzuki – Company announces the launch of its highly anticipated off-roader Jimny at a starting price of Rs1,274,000. The Jimny will be available for deliveries starting today across all NEXA showrooms in the country. - positive
· R Systems International - Company acquires Pune-based product engineering company Velotio Technologies for Rs 297 crore.- Positive
· Wabag bags Rs 420 crore water treatment plant contract from CIDCO for 270 MLD capacity at Raigad. The plant will pump the treated water to the Vihal reservoir for further distribution. – positive
· Focus on telecom stock as Cabinet okays $11 billion revival plan for state-owned BSNL - Cabinet has approved a revival package of 890.47 billion rupees ($10.79 billion) for state telecom operator Bharat Sanchar Nigam Ltd (BSNL) – expects positive for ITI, HFCL
· Focus on Major EV Supplier - Tesla Sets Up For India Entry: - Tesla Inc, under the leadership of its CEO Elon Musk, has reportedly agreed in principle to the Indian government’s proposal to not just assemble its electric vehicles in India, but also to establish a local vendor base. The government has requested a roadmap from Tesla outlining the timeframe for establishing a local supply chain, expecting a response within three to six months.- Expects positive for long term – Bharat Forge, Sandhar Tech, Kabra Extrusion, Fiem Industries, Sona Somstar and Amara Raja Batteries .
· China to Review Anti-Dumping Duties on Chemical From India - The Ministry of Commerce will review anti-dumping duties on meta phenoxy benzaldehyde imported from India from June 8, according to a statement from the ministry. Existing anti-dumping measures will continue to be implemented during the review, which will last as long as one year - Expects positive for Heranba as the company is a major player to produce phenoxy benzaldehyde.
· Jindal Poly Films has entered into an agreement to acquire the 100% shareholding of JPF Netherlands Investment B.V. a Netherlands based entity, which is engaged into the business of packaging films business through its three operational wholly owned subsidiaries based out of France, Italy, and United Kingdom. – positive
· Zydus Life - Company has received final approval from the USFDA for Tadalafil Tablets USP, 20 mg - positive
· Lemon Tree Hotels – Company has signed a License Agreement for a 60 room property in Rajamundry, Andhra Pradesh under the Company's brand "Lemon Tree Hotel". – positive
· Sula Vineyards – Company announced the signing on of a new CFO, and the launch of three new luxury villas at their iconic Beyond resort in Nasik. – positive
· Wipro launched a managed private 5G-as-a-Service solution in partnership with Cisco . The new offering enables enterprise customers to achieve better business outcomes through the seamless integration of private 5G with their existing LAN/WAN/Cloud infrastructure. - positive
· Datamatics – Company announced that it has been appraised at Level 5, the highest maturity level of the Capability Maturity Model Integration (CMMI) for Software Development and Business Process Management (BPM) Services. - positive
· Tata Elxsi – Company has partnered with the prestigious Indian Space Research Organization (ISRO) to enable the upcoming Gaganyaan Mission
· Loyal Equipments – Company wins Rs11.36cr of work order from Numaligarh Refinery – Positive
· K&R Rail Engineering – Company has signed the Memorandum of Understanding (MOU) on 06th June, 2023 with Bhalaji Toll Road Private Limited with the intention of carrying out the services in the infrastructure segment of Toll Management, Construction and Maintenance of Highways and allied infrastructure facilities as per the Contract, for Operation and maintenance of roads and highways under the infrastructure sector.- positive
· Titagarh Wagons – Company’s board meeting on 10th June for fund raising plan - Positive
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