· Upbeat quarterly earnings update by corporates, persistent FIIs inflow and impressive domestic economy data may open domestic market on a positive note. Among the global markets, Asian markets edged lower on Wednesday in subdued trading following a holiday for US markets, while investors look ahead to the release of private surveys on services in China and Japan. US nonfarm payrolls data will be announce on Friday, which may offer fresh hints on the Federal Reserve’s monetary-policy path. On the domestic front, the Indian market scaled record high for the fourth consecutive session on Tuesday led by robust foreign capital inflow amid optimism over the country’s bright macroeconomic outlook. Gift Nifty is flat to positive. Traders buy on dips strategy in the market and focus on mid- and small cap counters. Brent crude spiked to 2-week high at above $76/bbl is a concern. Expects rally on PSU Banks to continue on account of improve asset quality and hope of good quarterly results. Beaten down IT stocks are looking attractive on account of favourable risk reward ratio. Nifty has been making higher highs - higher lows from last five trading sessions and has recently rallied by around 800 points in last five trading sessions. Nifty has to continue to hold above 19300 zones to extend the move towards 19450 and 19500 zones.
· US Market U.S. markets closed yesterday for the Independence Day holiday.
· Global market summary – Central bank of Australia kept interest rates unchanged. Brent crude 2-week high
· Asian Market – Asian equities opened lower today in subdued trading following a holiday for US markets. Stocks marginally fell in Japan, South Korea, Hong Kong and Australia, along with futures for the S&P 500 and Nasdaq 100.
· European Market – European stocks edged marginally lower in thin trading as investors looked ahead to the monthly report on US employment for clues how high interest rates will rise this year. UK, France and Germany Index slipped 0.2% each.
· Oil – Oil rising more than 2% to 2-week high at $76/bbl on Saudi Arabian and Russian output cuts, with traders waiting for commentary from Saudi Energy Minister Prince Abdulaziz bin Salman.
· Gold – Gold held steady at $1925/ounce in subdued trading as traders look ahead to Friday’s US nonfarm payrolls report, which may offer fresh hints on the Federal Reserve’s monetary-policy
· path.
· Previous Day market Update –Equity benchmark index rose for the fifth consecutive session, extending their winning run to close at new record highs amid optimism over faster economic growth and foreign buying. Indices gained for a fifth straight day, the longest gaining streak in two months. There was renewed buying in Hero Motocorp, Bajaj Twins, Tech Mahindra, TCS and Infosys lifted Nifty nearly half percent. Upbeat quarterly earnings update by corporates, persistent FIIs inflow and impressive domestic economy data have positive impact in the markets. Moreover, expectation of US Fed to soften stance on hike in interest rate after fall in inflation while US market is shut today on account of National Holiday. Today, Central Bank of Australia kept interest rates unchanged. Sensex jumped 274 points or 0.40 per cent to settle at its all-time closing high of 65,479. During the day, the benchmark surged 468 points or 0.70 per cent to hit its lifetime intra-day peak of 65,673. Nifty climbed 66 points or 0.34 per cent to end at a fresh record high of 19,389. During the day, it advanced 112 points or 0.60 per cent to hit its all-time intra-day peak of 19,434. Both PSU Bank and IT stocks were major gainers today. Nifty 500 stocks advance decline ratio was 1.4:1. FIIs were Rs1996cr while DIIs were net sellers Rs338cr previous day.
· Nifty Technical Levels – Nifty respected support of 19300 zones to finally give the highest ever closing with gains of around 70 points. It has been making higher highs - higher lows from last five trading sessions and has recently rallied by around 800 points in last five trading sessions. Now it has to continue to hold above 19300 zones to extend the move towards 19450 and 19500 zones while on the downside support shifts higher at 19250 and 19100 zones.
· Bank Nifty Technical Levels – Bank Nifty formed a High Wave Doji on daily scale with long upper and lower shadow as it remained volatile in a wider range of 400 points but higher highs - higher lows formation is intact from the past five sessions. Now it has to continue to hold above 45000 zones for an up move towards 45500 then its recent life high of 45650 zones while on the downside support shift higher at 45000 then 44750 levels.
· Indian oil - Company to consider right issue and fund raising plan on July 7th Board meeting – positive
· Actionable BUY –Poonawala, FACT, Bank of Baroda, Lodha, BHEL
· Brokers Radar – Morgan Stanley TGT on Samvardhana Motherson at80, Jefferies TGT on Hero Motocorp at 3500, Axis Bank TGT by Jefferies at 1200. Bandhan Bank TGT by Nomura at 325, Citi TGT on Samvardhana Motherson at 65, CLSA TGT on Samvardhana Motherson at 102, nom, Macquaire TGT on LTIMindtree at 7300. Jefferies TGT on Bandhan Bank at 340. Atul Auto TGT by Philips Securities at 5600, Navin Fluorine TGT by CITI at 5600, Aster DM TGT by HSBC at 330
· Events – Service PMI and Composite PMI. Maruti and Bajaj Auto to launch new variant car, Hatsun Agro board meeting for non-core asset sale. Senco Gold IPO fist day subscribed 69%.
· Corporate Action - Sadhana Nitrochem – Bnous 2:9. Bhansali Engineering- Bonus 1:2.
· Global Data – Car Registration, Composite PMI and Constriction PMI (UK). Service PMI and Composite PMI (Germany). Industrial Production (France). Manufacturing Productio, Composite PMI, Service PMI (France). Composite PMI and Service PMI (China)
· Market Summary – Macrotech Developers Limited achieves best ever Q1 pre-sales performance , Samvardhana Motherson to buy 81% in Honda Motor Unit, SBI to Buy SBICAP Ventures From Unit for $86.3M in Cash , Piramal Capital sells bad loans to Omkara ARC. GIC, Genus Power Infra tie up to invest $2 bn in smart meter venture, LTIMindtree to Replace HDFC in Nifty 50 From July 13, NSE Says, Biocon in talks to acquire 37% stake in Stelis Biopharma for Rs 800 crore.
· Dabur: Fast-moving consumer goods company Dabur India added five new brands with sales greater than ₹100 crore in FY23, the company said in its fiscal 2023 annual report released to the exchanges on Tuesday. – positive
· Mahindra & Mahindra: Mahindra & Mahindra reported a 21 per cent increase in domestic passenger vehicle sales at 32,588 units in June 2023, as compared to June last year. The company sold 26,880 units of passenger vehicles in June 2022 - positive
· Strides Pharma - -- Biocon Ltd is in talks with Strides Pharma Science to acquire its 37 per cent stake in its biopharmaceutical division, Stelis Biopharma, in a deal estimated at Rs 800 crore, investment banking sources said on Tuesday. – Strides gained 8% yesterday.
· SAIL: Steel Authority of India (SAIL) reported an eight per cent year-on-year growth in its crude steel production at 4.667 million tonnes (MT) during the first quarter of fiscal 2023-24. - positive
· Genus Power - GIC, Singapore, has launched a new platform in India to fund smart metering projects in the country. The leading global investment firm has joined hands with Genus Power, to set up the platform. GIC will hold a 74 per cent stake; the balance will be Genus. The partners have committed to an initial pipeline with a capital outlay of $2 billion, and Genus would be the exclusive supplier to the platform for smart meters and associated services – positive.
· LTIMindtree and LIC Hosuing- LTIMindtree to replace HDFC in Nifty 50 from July 13, NSE Says. The housing finance company will also be replaced from the Nifty Financial Services index from July 13, following its merger with HDFC Bank, by LIC Housing Finance, the stock exchange said in a statement. - positive for LTI Mindtree and LIC Housing.
· BHEL - BHEL has extended its Gas Turbines technology agreement with General Electric Technology GmbH Switzerland. BHEL in partnership with GE is the market leader for Gas Turbines in India. - POSITIVE
· Macrotech Developers Limited achieves best ever Q1 pre-sales performance -Business performance for the period ended Q1 FY2023-24. Pre-Sales: Lodha achieved its best ever Q1 pre-sales performance of INR 33.5 bn showing a growth of ~17% on a YoY basis, in line with our guidance of 20% full-year sales growth. Collections: Collections were INR 24.0 bn for 1QFY24. We added 5 new projects having ~7.1 million sq. ft. of saleable area with GDV of INR ~120 bn across different micro-markets. Net debt: Our net debt stands at INR 72.6 bn, increasing marginally primarily on account of front loaded business development investment – Positive
· RBL Business Update – Total deposits of the bank was at Rs. 85,638 crores as of June 30, 2023 as against Rs. 79,216 crores as of June 30, 2022, a growth of 8% YoY. Gross Advances was at Rs. 74,792 crores as of June 30, 2023 as compared to Rs. 62,110 crores as of June 30, 2022, a growth of 20% YoY. Retail advances grew 32% YoY while wholesale advances grew 8% YoY - for the quarter ended June 30, 2023. – Positive
· Piramal Capital sells bad loans to Omkara ARC - Piramal Capital & Housing Finance has sold a loan outstanding pool of Rs3,656 crore bad loans to Omkara ARC for Rs625 crore – ET Report. The sale, finalised last week, marks a recovery of 17% for Piramal. The pool consists of accounts acquired along with Dewan Housing Finance Limited (DHFL) and Piramal's own loan book.
· Samvardhana Motherson - Company will buy an 81% stake in the four-wheeler business of Honda Motor Co. unit Yachiyo Industry at a valuation of Rs2290crbn yen or $159mn. Honda, which currently holds 50.4% equity in Yachiyo, will buy the entire stake in the publicly-traded company via a tender offer, and transfer the two-wheeler business of Yachiyo to itself.
· Aurobindo Pharma has announced that the breast cancer biosimilar product, BP02 developed by its wholly owned subsidiary company, Curateq Biologics Pvt, has met its primary endpoint in Phase 3 clinical trial – Positive development
· G R Infraprojects - Company agreement with the East Coast Railway for execution of the project "Construction of Tunnel work between Km. 153.0 to 180.0 (Adenigarh - Purunakatak) consisting of Tunnel With estimated project cost is Rs. 587.59 crores. - positive
· BHEL - Mr. Krishna Kumar Thakur, 49, has assumed charge as Director (Human Resources) of the Public Sector engineering and manufacturing enterprise.- Positive
· NBCC - Company inked an MOU with Currency Note Press (CNP) under Security Printing and Minting Corporation of India for Planning, Designing and Execution of Upcoming works such as State of Art Museum, Infrastructure development works at Currency Note Press (CNP) Nasik. - positive
· SAIL – Company signed a contract with mjunction services limited to roll out its e-procurement platform, mjPRO, across all the five ISPs for their project buys. – long term positive
· HPL Electric & Power – Company announces the successful acquisition of INR 903 crores (inclusive of Tax) smart meter orders. These orders further bolsters HPL's total pending pipeline order book, now totaling INR 2250+ crores as of the date of this release.
· Lupin – Company announced that it has received tentative approval from the U.S. FDA for Dollutegravir tablet. Dolutegravir Tablets for Oral Suspension had estimated annual sales of USD 1 million in the U.S. (IQVIA MAT March 2023). – Positive
· SBI – Company will acquire SBICAP Ventures (SVL) from unit SBI Capital Markets at an estimated Rs708cr in cash. SVL's asset under management (AUM) stood at Rs33,054 crore in FY23, compared to Rs26,811 crore in FY22. Last week, on June 28, SBI proposed for acquisition of a 20% stake in SBI Pension Funds (SBIPFPL), currently held by SBICAPS. – positive
· TCS – Company is set to initiate the Q1FY24 earnings season by disclosing its financial results on July 12. As per brokerage firm Jefferies, the Tata Group's subsidiary might unveil a share buyback program along with its earnings announcement.- Bloomberg Report.
· Bandhan Bank – Company’s CFO Samdani resigns effective Sept 30 - Avoid
· Zydus Life – Company has received final approval from the U.S. FDA for Oxcarbazepine tablets Oxcarbazepine tablets are used alone or with other medications to treat epilepsy – positive
· Tanla Platforms – Company acquired ValueFirst Digital Media Pvt Ltd from U.S.-based communications technology company Twilio for Rs20cr. It had earlier announced that it had entered into a definitive agreement with Twilio to acquire 100% equity of ValueFirst Digital Media for $42 million or approximately Rs 344.19 crore. – positive
· Adani Green Energy: The board will consider approving fundraising via issue of equity shares or any other mode including private placement, QIP and preferential issues on July 6.
· Reliance Industries: Reliance Jio launched an internet-enabled phone at Rs 999. The beta trial for the first 1 million Jio Bharat phones will begin on July 7. It includes unlimited voice calls and 14 GB of data for Rs 123 per month. – positive
· Precision Camshafts – Company has announced that the 15 MWp Captive Solar Power Plant installed at Mangalwedha, Solapur is now in operations. The said Solar Power Plant will reduce the cost of electricity required for the production and it will also help Company in generation of Green Energy and reducing the Carbon Footprint – positive
· NBC – Company said the external affairs ministry has sanctioned Rs 261.71 crore for redevelopment of a housing complex in central Delhi. – positive
· Suzlon – Company to consider capital rising on July 7 board meeting – Avoid due to poor balance sheet.
· Torrent Power: The company is implementing the Green Hydrogen Pilot Project to blend CGD. The Gorakhpur-based project will be completed in eight months. It will mix 2.5% into the CGD network. Aims to become an end-to-end green hydrogen solutions provider to commercial and industrial consumers. - Positive
· Vedanta: Total aluminium production in Q1 of fiscal 2024 rose 2% year-on-year to 579 kilo tonne. Mined metal output gained 2% from last year to its highest-ever level of 257 kilo tonne. – we are positive on Hindalco, Nalco
· Sula Vineyards: The company appointed Karan Vasani as its chief operating officer. The appointment was followed by the resignation of the present COO, Chaitanya Rathi – positive .
· IOL Chemical - Credit Analysis & Research Ltd has reaffirmed IOL Chemicals and Pharmaceuticals Ltd long-term Rating to ' A+' with a stable outlook – positive
· Au Small Finance Q1 Business Update - Total deposits of bank stood at Rs. 69,315 crores as of June 30, 2023 compared to Rs. 54,631 crores as of June 30, 2022, registering a growth of 27% YoY. Gross Advances was at Rs. 63,635 crores as of June 30, 2023 as against Rs. 49,349 crores as of June 30, 2022, a growth of 29% YoY. Average cost of funds (COF) for Q1'FY24 was 6.58%, an increase of 29 basis point (bps) over COF of Q4'FY23 at 6.29%. Management Commentary - Q1'FY24 saw gradual improvement in inflationary pressures amidst resilient macro-economic indicators. – positive
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