· Expects market to open on a positive note after the RBI kept unchanged interest rate second time in a row and lower FY24 inflation projection, rally in the global markets and hope of US Fed to keep unchanged interest rate in the next policy meeting will be positive for the market sentiment. U.S. stocks ended upto 1% higher to close 10-month high, boosted by a rally in shares of big technology shares and fresh signs of a cooling US labor market (20-month low)in prompted traders to curb bets on further monetary tightening. As a result, US bond yield fell by 1%, dollar Index fell to below 104 and US Vix drop over 2% to below 14, indicating US Fed to pause hike in interest rate in the next policy meeting. Investors seemed to be in a wait-and-see mode ahead of next week's key inflation data and the Federal Reserve's policy meeting. Meanwhile, investors are reassessing the trajectory of the Federal Reserve's monetary policy after central banks in Canada and Australia unexpectedly raised interest rates this week. Back home, SGX Nifty is up quarter percent and US Future is witnessing mixed bag. Yesterday, Index declined half a percent on account of profit booking after the RBI announced its credit policy today. RBI kept unchanged interest rate at 6.5% but lower FY24 Inflation projection from 5.2% to 5.1%. Positive factor that the continued FIIs buying interest (Yesterday net buyers Rs212cr), better than expected PMI data and strong GST collection will be positive for the market sentiment. Expects stock specific action in the market and momentum expected to be mid and small cap counters. Traders will be focus for banks, defense and auto stocks. Traders focus on Sugar and Coffee stocks due to spiked in Sugar and Coffee price in the international market.
· US Market –Technology stocks drove a rally in US equities while bond yields and the dollar fell after data showing US jobless claims surged more than expected last week. Nasdaq Composite gained 1% while Dow Jones Index soared over half percent. US Vix (Volatility Index) declined 2% to below 14.
· Global market summary – US jobless claims to the highest since October 2021 shows that the labor market. US Dollar Index fell to below 104. Both US 10-Year and 2-year bond yield declined by 1% each. S&P 500 into a bull market with a gain of more than 20% from its October low.
· Asian Market – Equities in Japan, South Korea and Australia opened higher Friday after a rally in US technology stocks pushed the S&P 500 into a bull market with a gain of more than 20% from its October low. Japan Index gained over 1%.
· European Market - European equities were steady as gains in automotive and banking stocks countered losses in other sectors like technology, which were weighed down by concerns of slowing growth and elevated interest rates. Moreover, fall in Euro zone GDP growth is a concern in the European region. UK Index marginally decline while both Germany and France Index gained 0.2% each
· Oil – Oil declined 2% to $75/bbl as demand concerns returned to the fore, snuffing out gains driven by Saudi Arabia’s unilateral pledge to cut production. Reports that the US and Iran had made progress on nuclear talks that could lead to more supply from the Islamic Republic. However, US officials said reports of an interim deal are false.
· Gold –Gold edged higher by 1% to $1965/ounce after sinking to its lowest close since March, with investors tempering bets on future Federal Reserve rate hikes and lower US bond yields.
· Previous Day market Update –.Equity benchmark index declined nearly half a percent from the intra-day high on account of profit booking after the Reserve Bank of India announced its credit policy today. Interest-sensitive sectors like auto, financials, and real estate declined as traders booked profit. The RBI kept the repo rate unchanged at 6.5 percent – in line with expectation but the RBI Governor cautioned that inflation concerns in the second half of the year need to be watched and addressed at an appropriate time. There was some hawkish stance by the RBI government which dampened the market sentiment. Moreover, investors had a cautious approach ahead of the US Federal Reserve’s policy decision to be release next week. Both the Central Bank of Australia and Canada unexpectedly raised rates by 25bps, stoking concerns for further tightening by the Federal Reserve. Sensex declined 294 points or 0.4% to close at 62848. Sensex touched an intra-day high of 63321 and low of 62790. Nifty declined 90 points or 0.5% to close at 18634. Nifty touched an intra-day high of 18777 and a low of 18615. After a long time, both mid-cap and small cap stocks corrected and declined nearly 1% from the intra-day high. While India Vix cooled off by nearly 2% to close at 11.25. FIIs were net buyers Rs212cr while DIIs were net sellers Rs405cr yesterday.
· Nifty Technical Levels – Some sort of pause could be seen Nifty at record levels but overall set up remains positive. It formed a Bearish candle and an outside Bar on daily scale. Now it has to cross and hold above 18666 zones to witness an up move towards 18786 and 18888 zones while on the downside support exists at 18580 and 18530 zones.
· Bank Nifty Technical Levels – Bank Nifty formed a Bearish candle on daily scale as selling pressure was seen at higher zones however multiple supports are intact at lower zones and it closed near its crucial 20 DEMA levels. Now it has to cross and hold above 44044 zones for an up move towards 44250 then 44500 zones while on the downside support is seen at 43750 then 43500 levels.
· Actionable BUY – Hindustan Aeronautics, Tata Steel, CCL Products, Tata Power, Tata Motor, Reliance Industries
· Brokers Radar – Macquarie – TGT on SBI Life at 1306, HDFC Life at 556 and ICICI Prudential Life TGT at 486. JP Morgan – Hero Motocorp TGT at 3315, Bajaj Auto TGT at 5380 and TVS Motor tgt AT 1400. Macquarie TGT on TVS Motor at 1418. Goldman Sachs - Ultrtechtech Cement TGT at 8600 and Dalmia Cement TGT at 2100
· Events –Kotak Mahindra Bank block deal of 1.7% equity, IKIO Lighting Rs607cr IPO Subscribed 68 Times by Last Day.
· Corporate Action - Solar Industries - AGM and ex-dividend Rs8, Asian Pains Rs21.25, Elecon Engineering Rs2 and HDFC AMC Rs48
· Global Data –CPI and PPI (Producer Price Index) - China
· Market Summary – Canada Pension Seeks up to $754M in Kotak Stake Sale, Tata Power receives LOA to set up 966 MW Renewable Power Project for Tata Steel, German Defence Minister visits Mazagon Dock in Mumbai, RBI keeps unchanged interest rate and lower inflation, Hatsun Agro To Consider Sale Of Windmill Division, Govt. in talks with US on steel, aluminum tariff exemption- media report
· Kotak Bank - Canada Pension Plan Investment Board offers 33m shares, or a 1.7% stake, in Kotak Mahindra Bank in a block trade. The shares are offered at Rs1,792.18 to 1,886.50 a share, price range represents a discount of 5% (CMP 1886). Current holding 4.34% stake by Canada Pension Plan Investment – Any sharp decline will be buying opportunity.
· Hindustan Aeronautics (HAL)- The Board of Hindustan Aeronautics Ltd (HAL) will meet on June 27 to consider and approve a proposal to split its equity shares – positive
· Tata Power - Company received Letter of Award 'LOA' to set up 966 MW RTC hybrid renewable power for Tata Steel. This is one of the biggest industrial RTC power PPAs under Group Captive segment in the country. – positive
· IRB Infra – Company’s listed Private InvIT report 20% growth in Toll Revenue for May 2023 – positive
· Biocon – Company said that its active pharmaceutical ingredient (API) manufacturing facility in Bangalore received a certificate of GMP Compliance from competent authority of Germany - positive
· CEAT Limited - Company has increased stake with Tyresnmore Online Pvt for making a further investment of upto ₹ 9 Crore to acquire additional 10.89% of the fully diluted post issue total share capital. Tyresnmore shall become Subsidiary of CEAT Limited and the total holding of CEAT Limited in Tyresnmore on a fully diluted basis would be 56.9%.
· Aether Industries – Company signed license agreement with Saudi Aramco Technologies Company for the commercialization of the sustainable Converge®️ polyols technology - positive
· GAIL – Company emerged successful in Corporate Insolvency Resolution Process (CIRP) of JBF Petrochemicals in competitive bidding seeing through major India petrochemical players in the process. The acquisition of JBFPL offers GAIL an opportunity to add a new product Purified Terephthalic Acid (PTA) to GAIL's existing petrochemical portfolio. – positive
· NHPC – Company has been allotted a Pump Hydro Storage site in Punasa, Dist, Madhya Pradesh with estimated storage capacity of 525 MW X 6 hours, by New and Renewable Energy Department, Govt. of Madhya Pradesh. – Positive
· TCM Ltd (Formerly Travancore Chemical) has received the work order from Agency for New and Renewable Energy Research and Technology (ANERT), Department of Power, Government of Kerala for the Design, Supply, Installation and Commissioning of Grid connected SPV Power Plants in Public Buildings at Thiruvananthapuram under Solar City Project – Positive
· Bharti Airtel – Company surpasses the 20 lakh customer mark on its 5G network in Uttar Pradesh East - positive
· RBI Monetary Policy: The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), announced its decision to keep the repo rate unchanged at 6.5 per cent. RBI governor Shaktikanta Das said that the committee took the decision unanimously. The gross domestic product (GDP) forecast for 2023-24 (FY24) has also been kept unchanged at 6.5 per cent. However, the inflation target for FY24 has been lowered marginally to 5.1 per cent from 5.2 per cent earlier. RBI said inflation is expected to remain above 5 per cent in FY24. The MPC also announced that it will continue with its stance of "withdrawal of accommodation".
· Focus on Metal stocks - Government is in negotiations with the US to seek an exemption from steel and aluminium tariffs imposed by former US President Donald Trump, as well as the removal of some retaliatory levies. Negotiators in New Delhi and Washington want to strike a deal during Indian Prime Minister Narendra Modi’s visit to the United States later this month – expects positive for Hindalco, SAIL, Nalco and Tata Steel
· Zydus Life – Company gets USFDA approval for Nexium delayed-release oral suspension - positive
· Mother Dairy has reduced the maximum retail price (MRP) of edible oils sold under Dhara brand by Rs 10 per litre on account of fall in edible price in the international market – It may positive on select FMCG stocks (Hindustan Unilever, Dabur India) and expectation of cooling down inflation. However, Marico, Godrej Agrovat and Patanjali may negative impact.
· KPI Green Energy – Company have received Commissioning Certificates from Gujarat Energy Development Agency ('GEDA') for the 26.10MW wind-solar hybrid power project comprising 16.10MW wind and 10MWdc solar capacity at Bhungar site in Bhavnagar, Gujarat, under the Gujarat Wind-Solar Hybrid Power policy 2018. - positive
· Trigyn Technologies- company has announced that the contract of our wholly owned subsidiary, Trigyn Technologies Inc., with the United Nations, for the provision of Information and Communication Technology Staffing Support at the UN Missions and other UN offices worldwide, has been extended for an additional six (6) months. – positive
· Mazagoan Dock - A delegation from Germany led by its Defence Minister Boris Pistorius visited the Western Naval Command (WNC) and the Mazagon Dock here with an aim to strengthen defence ties between the two countries - positive
· Inox Wind – Company has bagged an order for a 100MW wind power project from ABEnergia Renewables Pvt Ltd (ABEnergia), an Independent Power Producer – positive
· Hatsun Agro To Consider Sale Of Windmill Division - Hatsun Agro is considering the sale of its windmill division by way of transfer of all the assets and liabilities through a slump sale – Positive to exit non-core business
· L&T Finance – Company approved dividend Rs2 a share
· IndusInd Bank – Company has been empaneled as the official angency bank by the Madhya Pradesh Government. Bank to collect government's revenue and receipts such as GST and VAT online – Positive
· Zen Technologies - Military training and anti-drone solutions provider Zen Technologies has secured an order worth Rs202cr from the Ministry of Defense - positive
· SpiceJet - SpiceJet will partner with FTAI Aviation for its CFM56 engine revitalization program. Under the program, FTAI Aviation will provide SpiceJet with upto 20 engines for lease, inclusive of maintenance services – positive
· Delhivery Ltd - ONDC network partners with Delhivery and Mystore to provide express parcel shipping for rural entrepreneurs nationwide - positive
· CCL Products - Company acquired six coffee brands from Lofbergs Group for £550,000 or approximately Rs 5.66cr – positive .
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