News and Impact

News and Impact

 

 

·      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 .

 

 

News and Impact

News and Impact

 

 

·      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

 

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

 

 

 

News and Impact

News and Impact 

·       Expects market to open on a flat note on account of global cues. US market declined upto half percent and Asian market open on a mixed bag after US announced lower than expected Service PMI data. US Treasuries drifted after a report the US services sector nearly stagnated in May (Service PMI 54.9 while expectation 55.1). The Institute for Supply Management’s overall gauge of services unexpectedly fell to the lowest level of the year, offering a less upbeat assessment of the US economy. However, risks still loom with market increasingly speculating the Federal Reserve will hold rates steady in June, but keep its options open for hikes later on. US Banking stocks declined after the Treasury debt issuance, proposed new capital requirements. SGX Nifty is trading flat to negative. Expects rangebound market today on ahead of RBI credit policy to be announce on Thursday. Two days MPC (monetary policy committee) meeting will commence from today while expectation of RBI may keep unchanged interest rate. Yesterday, market gained marginally but momentum continued on mid-cap and small cap stocks. Nifty 500 stocks advance decline ratio was favorable yesterday at 1.4:1. Undertone bullish sentiment in the market on account of better than expected domestic GDP and PMI data during the month of May. May Service PMI data announced while it has eased slightly, but registered the second-strongest rate of growth in close to 13 years, on favourable demand conditions and new client wins. Expects rally on defence stocks to continue after the US Defense Secretary said that the country is increasingly interested in sharing defense technology with its south Asian partner. Banking, Auto and Real Estate stocks will be in focus ahead of RBI policy outcome this week.

 

·       US Market   – US Market declined marginally after a report the US services sector nearly stagnated in May. The Institute for Supply Management’s overall gauge of services unexpectedly fell to the lowest level of the year, offering a less upbeat assessment of the US economy. Dow Jones slipped half percent while Nasdaq Composite ended marginally lower.

 

·       Global market summary – Brent crude nearly 2-week high. US Dollar Index surged to above 104.

 

·       Asian Market – Asian equities open on a mixed bag after the US stocks pulled back short of entering a bull market. Shares declined nearly half percent in South Korea, Taiwan and Australia while Japan market posted modest gain. Speculation that the Fed may plan to keep rates steady in June but keep options open for later hikes ramped up after the Institute for Supply Management’s overall gauge of services unexpectedly fell to the lowest level of the year, offering a less upbeat assessment of the US economy

 

·       European Market – European stocks fell on Monday, trimming Friday’s rally, after weaker-than-expected data from the US stoked investor concern about the health of the economy. UK, France and Germany Index declined nearly half percent each.

 

·       Oil –  Oil edged lower by 1% to below $77/bbl as traders weighed the outlook for supply and demand after Saudi Arabia’s surprise pledge for extra supply cuts.

 

·       Gold –   -- Gold advanced 1% to $1962/ounce as Treasury yields fell after weak US service-sector activity made traders rethink the Federal Reserve’s interest-rate hike path.

 

·       Previous Day market Update –.Equity benchmark Index ended in the green for the second consecutive session on positive global cues amid hopes of a pause in rate hikes by the US Fed,  ahead of RBI credit policy to be announce this week. Action shifted to defense, shipbuilding and auto stocks. Heavyweights like Reliance Industries, ICICI Bank, Tata Motor, L&T, Axis Bank and M&M were major gainers among the Nifty stocks. Sentiments were boosted across the global markets on the hope of US Fed to pause hike in interest rate and strong domestic economy data. Today, May Service PMI data announced while it has eased slightly, but registered the second-strongest rate of growth in close to 13  years, on favourable demand conditions and new client wins. Mid-cap and small cap stocks continued rally and Nifty 500 stocks advance decline ratio was 1.4:1. Sensex climbed 240 points or 0.40 per  cent to settle at 62,787. During the day, it jumped 396 points or 0.63 per cent to 62,943. The Nifty advanced 60 points or 0.30 per cent to end at 18,594. . RBI credit policy would be announce on 8th June or Thursday while US Fed rate decision to be release on subsequent week or June 14. Expectation of RBI to keep unchanged interest rate on account of cooling down inflation.  FIIs were net sellers Rs701cr while DIIs were net buyers Rs1196cr yesterday.

 

·       Nifty Technical Levels – Nifty formed a small bodied candle on daily scale and negated its lower highs formation of the last three sessions to close with gains of around 60 points. Now it has to hold support of 18580 zones to witness an up move towards 18750 and 18888 zones while on the downside support exists at 18480 and 18442 zones.

 

·       Bank Nifty Technical Levels – Bank Nifty formed a Doji candle on daily scale as some profit booking was seen from higher zones in the last hour of the session and it closed at it opening zones. However it negated the formation of lower highs after four sessions to close with gains of around 160 points. It is holding well above its 20DEMA on daily scale and buy on dips stance likely to continue. Now it has to continue to hold above 44044 for an up move towards 44250 then 44500 zones while on the downside support exists at 43750 and 43500 zones.

 

·       Actionable BUY – IDFC, Indusind Bank, Tata Power, Global Health, HAL

 

·       Brokers Radar – ONGC TGT by Morgan Sanely at 206, Nomura – BHEL TGT at 61 from 79. PNC Infra TGT at 375. Jefferies on Power Sectors– Power Gird TGT at275, NTPC TGT at 205, Tata Power TGT at 185 from 175, IEX TGT at 120, JSW Energy TGT at 325. Tatat Consumers TGT by JP Morgan at 770, Axis Bank TGT by Jefferies at 1150

 

·       Events – RBI’s MPC meeting commence from today while RBI credit policy to be announce on Thursday.  IKIO IPO will be open today with price brand between 275-285 a share. Bajaj Finserv meeting for new product launch.

 

·       Corporate Action  - ex-dividend - Nelco Rs2.00

 

·       Global Data – Constriction PMI (UK). Factory Order and Construction PMI (Germany). Exports, Imports and Trade Balance (China)

 

·       Market Summary – Defence Stocks in India Rally as US More Open to Tech Sharing , L&T Finance to sell bad loans worth Rs 3,000 cr, Tata Chemicals Revises Holding Structure of US Operations, TCS bags 10-yr contract from UK, SBI Board to Meet on June 9 to Consider Fund Raising for FY24.

 

·       SBI – Company plans to seek board approval on June 9 to raise funds for the year to March 31,  Fund raising may be considered through private placement of INR and/or foreign currency debt – Positive.

 

·       Focus on Defense stocks - US Defense Secretary Lloyd Austin said that the country is increasingly interested in sharing defense technology with its south Asian partner.  Austin and his Indian counterpart Rajnath Singh signed a road map for a cooperation agreement in defense and technology – Expects positive for HAL, Paras Defense, Cochin Shipyard, Mazagoan Dock, BEL.

 

·       Adani Group: The group made prepayment of margin linked share backed financing totalling $2.15. Promoters also prepaid $700 million debt taken for the Ambuja Cement acquisition. Cash balance of listed portfolio up 41.5% YoY to $4.75 billion (Rs 40,351 crore) in FY23.

 

·       Mahindra & Mahindra: Sunrise Initiatives sells entire stake of 81.58% in Mahindra Marine to Ocean Blue Boating. Ocean Blue currently holds the balance 18.42% stake in Mahindra Marine – Positive

 

·       Allcargo Logistics: Transindia Real Estate has agreed to further divest 10% stake each in five subsidiaries of Allcargo and a 100% stake in Allcargo Multimodal to Blackstone. – positive

 

·       NELCO: Company inks pact to acquire 9.09% stake in Piscis Networks with an initial investment of Rs 99.99 lakhs. It plans to increase stake in the company to up to at least 30%. – positive

 

·       Indian Energy Exchange: Company reported 8,251 MU overall volume in May, a gain of 8% year-on-year. The market clearing price declined 30% year-on-year to Rs.4.74 per unit. Power demand is expected to increase in coming months and supply side liquidity may improve due to enhanced coal supply - positive

 

·       Emami: Company buys back a total of 23.68 lakh equity shares on Jun. 5.   - Company announced impressive Q4 results.

 

·       Wipro - Company said its cloud-based dynamic digital signage solution Wipro VisionEDGE will power television network Bowling Center TV across the U.S., a new US based digital TV network to be distributed across 1,000 bowling centers in the US. Cisco is also a technology partner signed by BCTV.

 

·       K Cement: Company agrees to sign, execute share purchase agreement to buy 100% stake in Toshali Cements for Rs 157 crore in cash. The acquisition will help the Company expand its footprint into the Eastern Region. - positive

 

·       CSB Bank: Mr. Satish Gundewar takes charge as chief financial officer of company from Jun.5 . He was former CFO of DCB Bank. – Positive

 

·       Godrej Consumer Products: Company appointed Aasif Malbari as Chief financial officer - positive

 

·       JSW Steel - has achieved a significant breakthrough in environmental sustainability by embarking on waste plastic injection in blast furnace. The company has accomplished a remarkable milestone by successfully injecting a substantial quantity of waste plastic into Blast Furnace 3 at their Vijayanagar Steel Plant – positive

 

·       B.L. Kashyap one of the leading Civil Engineering and Construction Company has secured new order aggregating to ₹ 147 Crores approx. The total order book as on date stands at ₹ 2774 Crores – Positive

 

·       Aptech Ltd fixes July 6, 2023 as record date for bonus issue

 

·       Services PMI Eases to 61.2 in May - Services activity contracted in May as the seasonally adjusted S&P Global India Services PMI Business Activity Index eased to 61.2 in May as against 62.0 in April. The expansion was at the second-fastest pace in close to 13 years. Favorable demand conditions, new client wins and positive market dynamics reportedly supported output, S&P said.

 

·       Tata Chemicals  -  company announced the restructuring of its US operations

 

·       Indoco Remedies – Company's CRO arm AnaCipher updates on USFDA inspection, the USFDA has confirmed that no objectionable conditions were observed during their remote assessment. – positive

 

·       PVR INOX - Company launches new 7-screen multiplex at Global Mall, Mysore Road in Bengaluru – positive

 

·       Bajaj Finserv – Company signed a Memorandum of Understanding (MoU) with the Government of Maharashtra, to develop a Rs. 5000 crore project in Pune, one of the largest financial services investments in the country. – positive

 

·       L&T Finance– Company has initiated a bidding process to sell non-performing loans worth Rs3,022 crore to asset reconstruction companies. These loans are spread across 10 accounts, including Nirmal Lifestyle Developers, Nirmal Lifestyle Malls, and Supertech. – positive

 

·       Sbi Card – Company approves raising Rs3000cr funds via debt, bond, private plcement - Positive

 

·       NSE, BSE To Introduce Enhanced Surveillance Mechanism For "Micro-Small" Companies From Jun 5 - To curb volatility in small-cap counters, leading stock exchanges BSE and NSE have put in place an enhanced surveillance mechanism for companies that have a market cap of less than Rs 500 crore

 

·       TCS – Company has been awarded a 10-year contract by the UK Government's Department for Education to administer the Teachers’ Pension Scheme. The contract includes administration and further enhancement of customer experiences via a digitally enabled system.

 

·       Mahindra Life - Company announced, Mahindra Industrial Park Chennai a JV between Mahindra World City Developers and Japan-based OMRON Healthcare will start operations at Origins by March 2025. The OMRON Healthcare factory will be built over 6.02 acres and will be manufacturing blood pressure monitors and supplying them mainly to the domestic market.- Positive

 

·       Tata Power - Company will set up renewable energy plant in Bikaner, Rajasthan, to supply 211 million units to Kerala The project is expected to be completed in seven months – positive

 

·       Suzlon – Company becomes first Indian wind energy company to cross 20 GW of wind energy installations through 12,467 wind turbines installed across 17 countries. – Avoid due to poor balance sheet

 

·       Embassy Office Parks REIT – Company to Raise Rs 1,050 Crore Via Private Placement Of NCDs Company will allot 1,05,000 non-convertible debentures at a face value of Rs 1,00,000 each for the coupon rate of 7.77% per annum – positive.

 

·       Greaves Cotton - Company's NBFC Arm Introduces online platform for EV financing Greaves finance launches electric vehicle financing platform 'evfin". - positive

 

·       Patel Engineering receives a contract for the construction of a 6.70 km treated water tunnel from CIDCO worth Rs520

 

·       Som Distilleries – Company announces 42% growth in its beer market share in Madhya Pradesh for the month of May.- positive

 

·       HG Infra – Company gets Rs655cr railway EPC orders – positive

 

·       Nava LTD – Company says its Zambia based colliery has lowered overall liabilities by about $277m.  The unit Maamba Collieries Ltd. has leveraged upon the improved operational cash flows to discharge overdue loan instalment aside from meeting regular debt service from March.  The unit has reduced its overall liabilities by $277m since start of December to $206m, which is a significant turnaround in its financial position – stock gained 7% yesterday

 

 

 

News and Impact

News and Impact

 

 

·      Expects market to open on a strong note on account of across global market rally due to boosted sentiment after reported positive US economy data, hope of US Fed to pause hike in interest rate and strong domestic economy data. U.S. stocks climbed up to 2% (Dow Jones gained over 700 points) on Friday after a labor market report showing moderating wage growth in May, indicating the Federal Reserve may skip a rate hike in two weeks, while markets welcomed a Washington deal that avoided a catastrophic debt default. The Cboe Volatility Index, or VIX, dropped below 15 from an average of 23 in the past year after the US private sector payrolls increased by 339,000 in May, compared estimate of 190,000. Russell 2000 index of small caps, the home of several regional banks soared about 3.5%. SGX Nifty is up nearly 100 points or over half percent. On the domestic front, easing inflation, stronger-than-expected economic growth data (FY23 GDP 7.2% - expectation 6.9%), persistent FIIs buying interest, fast-paced expansion of India's factory output (May PMI 31-Month high) and better than expected auto monthly sales data will have positive impact on market sentiments. RBI credit policy would be announce on 8th June or Thursday while US Fed rate decision to be release on subsequent week or June 14. Expectation of RBI to keep unchanged interest rate on account of cooling down inflation. Among the sectors to be watch for today – metal stocks will be in focus after the news that the China is working on a new basket of measures to support the property market. Interest sensitive sectors like banks, finance, real estate and auto stocks will be in momentum ahead of RBI credit policy. Tech stocks may be positive after the global IT major Index, Nasdaq Composite surged to 9-month high.

 

·      US Market   – U.S. stocks jumped Friday, with the Dow Jones closing up 701 points orv over 2% , after the May jobs report showed the labor market is in surprisingly strong shape despite the Federal Reserve’s aggressive tightening of monetary policy in the past year. A mixed jobs report shaped the wagers on a Fed pause, with signs of labor-market slackening in May despite a pickup in hiring. Investor sentiment was high Friday following the blowout nonfarm payrolls growth in May reported by the Labor Department. Public and private sector payrolls increased by 339,000 in May, compared to the Dow Jones estimate of 190,000. Nasdaq Composite soared 1% while Dow Jones Index advance 2%.

 

·      Global market summary – US CBOE Volatility Index fell to 2-year low to below 15, S&P 500 surged by 20% from the October low, indicating a bull market, US 2- year and 10-year spiked to 2-month low. 

 

·      Asian Market – Asian markets surged on Monday after the S&P 500 rose to the cusp of a bull market amid strengthening bets for a Federal Reserve rate pause this month. Japan Index surged over 400 points or 1.5%. Taiwan, South Korea, Australia Index gained over 1% each. A mixed jobs report shaped the wagers on a Fed pause, with signs of labor-market slackening in May despite a pickup in hiring.

 

·      Oil –  Oil advanced 3% to $77/bbl after the Saudi Arabia said it will make an extra 1 million barrel-a-day supply cut in July, taking its production to the lowest level for several years following a slide in prices.

 

·      Previous Day market Update – Amid positive cues from global markets and strong domestic macroeconomic data, benchmark equity indices posted modest gains led by metal, select banking, pharma, and auto stocks. Easing inflation, stronger-than-expected economic growth data, and fast-paced expansion of India's factory output have improved investor confidence. Among the global markets, US, Europe and Asia markets gained between 1-2% (Hong Kong index gained 4%) after the US Senate passed legislation to suspend the country’s debt ceiling, ending a drama that weighed on market sentiment. Moreover, investors remain hopeful of US Fed to pause the hike in interest rate in the June policy meeting. Better than expected monthly sales data and USDINR fell to a 1-month low and persistent FIIs buying interest also added fuel to the market sentiment. Sensex advance 118 points or 0.20% higher to close at 62,547while Nifty gained 46 points or 0.2% to close at 18,534 against the previous day’s close. FIIs were net sellers Rs71cr while DIIs were net buyers Rs489cr yesterday.

 

·      Nifty Technical Levels – Nifty has been forming lower highs from the last three sessions and closed the day with gains of around 45 points. It formed a small bodied Bearish candle on weekly frame but has been forming higher highs from the last ten weeks. Now it has to hold support of 18442 zones to witness an up move towards 18666 and 18750 zones while on the downside support exists at 18442 and 18333 zones.

 

·      Bank Nifty Technical Levels – Bank Nifty has been forming lower highs - lower lows on daily scale from the past three sessions but holding well above its 20DEMA. It formed a Bearish candle on weekly scale but structure of higher highs is intact from the last ten weeks. Now it has to cross and hold above 44044 for an up move towards 44250 then 44500 zones while on the downside support exists at 43750 and 43500 zones.

 

·      Actionable – Paytm, Tata Steel, National Aluminium, Bharat Forge, Tech Mahindra, Lemon Tree Hotel, SBI, Tata Chemical

 

·      Brokers Radar – Vedanta – JP Morgan TGT at 280 from 350, Hindustan Zins TGT by JP Morgan to 205 from 235, Bharti Airtel TGT raised BY Goldman Sachs at 890 from 575 and Macquarie TGT at 1000, CITI TGT on AU Small Finance Bank at 765, M&M Finance TGT by Citi at 355 from 310, Bajaj Finance TGT by Morgan Stanley at 8500.

 

·      Events – Maruti to launch new model Jimmy.

 

·      Corporate Action  - Hardwyn India – Bonus 1:3 and stock split from Rs10 to Re1. Shyam Metalic Rs1.80.

 

·      Global Data – Service PMI, Manufacturing PMI, Durable Goods Orders (US). New Car Registration, Service PMI and Composite PMI (UK). Composite PMI and Service PMI (France). Composite PMI, Service PMI. Composite PMI, Service PMI (China)

 

·      Market Summary – Apollo Hospitals Seeks $200m From Digital Unit Stake Sale: ET , Adani Ports hits lifetime high monthly cargo volumes in May 2023 , India’s Jobless Rate Falls to 3-Month Low of 7.7% in May: CMIE Data, ICICI Bank cuts lending rates, Mphasis Consulting Ltd to acquire eBECS Ltd., Mahindra Financial May Disbursements Rise 39% Y/y to Rs41.5B, Tata Chemical signed an MoU with the Gujarat Govt. to set up a 20 GW capacity lithium-ion cell manufacturing giga factory

 

·      Focus on Forging stocks – Bharat Forge reported 10% surged its North America class 8 truck at 15500 unit (29% spiked MoM). Focus also, RK Forging, M&M Forging also

 

·      Tata Chemicals: The company signed an MoU with the Government of Gujarat to set up a 20 GW capacity lithium-ion cell manufacturing giga factory with an investment of Rs 13,000 crore, the state government said in a statement. The company will reorganise its U.S. operations to rationalise the number of intermediate entities. – positive

 

·      SBI Life Insurance: Insurance regulator IRDAI approved transfer of life insurance business of Sahara India Life Insurance Co. to SBI Life, with immediate effect. - positive

 

·      Indian Overseas Bank: The Reserve Bank of India imposed a monetary penalty pf Rs 2.20 crore on the bank over regulatory non-compliance.- Avoid

 

·      Tech Mahindra: The company’s subsidiary Comviva Technologies and step-down subsidiary Comviva Technologies B.V. have agreed to sell 0.04% and 99.96% shareholding, respectively in Comviva Technologies do Brasil Indústria, Comércio, Importação e Exportação to Druid Internet Systems Comércio E Serviços for an upfront payment of $20,000 and deferred payment of $1.42 million. – We are positive on the stock

 

·      Godrej Properties: The company bought the remaining 26% stake in Godrej Home Constructions for Rs 14.99 crore, taking its total shareholding to 100%. – positive

 

·      Mahindra Lifespace Developers: Japan-based Omron Healthcare will start operations at Origins by Mahindra industrial cluster in Chennai by March 2025. – positive

 

·      PI Industries: The company completed acquisition of 100% stake of Therachem Research Medilab (India) and Solis Pharmachem, as well as acquisition of certain identified assets of TRM U.S. by PI Health Sciences U.S.A. – positive

 

·      IPCA Lab - The Income Tax Department has carried out survey proceedings at the Company's offices in Mumbai and at Sikkim manufacturing plants between 30th May, 2023 to 3rd June, 2023.- Any sharp decline will be buying opportunity

 

·      Lemon Tree Hotel – Company announced the opening of two of its latest hotels - Lemon Tree Hotel, Agra and Lemon Tree Hotel, Bhopal. - positive

 

·      NTPC –Company commissions last part capacity of 50 MW of 300 MW Nokhra Solar PV Project and 50:50 JV with IOC - positive for long term

 

·      Wonder Holidays – Company has announced that the Government of Tamil Nadu has granted waiver of Local Body Tax (LBT) of 10% for a period of 10 years from the commencement of commercial operations, after persistent efforts by the Company.- Positive

 

·      Lupin Labs – Company announced the launch of Darunavir Tablets in US MARKET of , 600 mg and 800 mg. Darunavir Tablets, 600 mg and 800 mg (RLD Prezista®) had estimated annual sales of USD 308 million in the U.S. (IQVIA MAT March 2023). – positive

 

·      Indo Rama Synthetics – Company has successfully started commercial production of "Bottle grade PET resins" from its newly constructed Solid-State Polymerisation (SSP) Plant at Butibori, Nagpur, Maharashtra- Positive.

 

·      Wipro – Company fixes June 16, 2023 as record date for buyback

 

·      Hero Motocorp - Compnay launched a refreshing new range of its highly popular 100cc motorcycle - the HF Deluxe. – positive

 

·      Zydus Lifesciences- Company announced that the group's animal health drug manufacturing facility at SEZ, Ahmedabad underwent a USFDA inspection from 30th May to 2nd June, 2023. The inspection closed with nil observations. – positive

 

·      Indoco Remedies - The USFDA had inspected Indoco Remedies facility located at Goa, from February 20, 2023 to February 28, 2023. The said Facility had 4 observations in Form 483. – Avoid

 

·      India’s Jobless Rate Falls to 3-Month Low of 7.7% in May: Unemployment rate fell to a three-month low in May as about 12 million people who were either employed or looking for work dropped out of the labor force, according to the Centre for Monitoring Indian Economy Pvt. (CMIE).  Jobless rate in May was 7.7%, compared with 8.5% in April.

 

·      TARC Ltd (Annad Raj) - Company announced another pre-payment of its NCD commitments. Company has made a payment of RS. 87.95 crores on June 1, 2023, out of which Rs.56.90 crores has been towards partial redemption of unlisted NCDs. – positive

 

·      Tata Elaxsi – Company  has partnered with Cultos Global to integrate a Blockchain mechanism from Cultos Global with its TETHER Connected Vehicle Platform, to create an innovative Driver Reward Program. – positive

 

·      Hero Motocorp - Company reported May monthly sales volume at 519474 unit (up 7% YoY) – Expectation 418565 unit

 

·      DCB Bank – Company names Ravi Kumar as CFO – positive

 

·      ICICI Bank cuts lending rates - ICICI Bank has reduced its marginal cost-based lending rates (MCLR) for the month of June 2023. The one-month MCLR has been reduced from 8.50% to 8.35%, while the three-month MCLR has experienced a 15 basis point decrease, settling at 8.40%. – Positive

 

·      Bank of Baroda – Company approved raising of additional capital worth Rs5000cr via Tier 1 and Tier 11 bond – Positive   

 

·      M&M Finance - Collection efficiency was at 96% for May, compared with 95% a year earlier, Mahindra and Mahindra Financial.  Business assets at Rs85500cr ($10.4 billion), rise 3.3% over March. Stage-3 and Stage-2 assets continued to remain range-bound compared with March.

 

·      Adani Ports hits lifetime high monthly cargo volumes in May 2023 – Company handled over 36 MMT of total cargo at its ports, implying 19% YoY growth.  On YTD basis, APSEZ has clocked ~68.5 MMT of overall cargo volumes, which is a good 16% YoY growth – positive

 

·      Allcargo Logistic – Company has announced several significant appointments in key leadership positions within the organisation. These strategic appointments post demerger, reinforce for growth. These appointments exemplify Allcargo Group's commitment to driving expansion and enhancing its presence in the dynamic logistics industry. Mr. Adarsh Hegde, who is the joint Managing Director, based out of Mumbai has been with the organization for over 30 years, has now been promoted to the position of Managing Director.- Positive

 

·      Minda Corp -  Company has considered and approved the proposal of raising of funds through public and/or private offerings including preferential issue, qualified institutions for an aggregate amount not exceeding Rs600 Crores – positive

 

·      Ramco Systems – Company announced the inauguration of its wholly owned subsidiary in Qatar, to support and transform the region's business houses and MNCs in the area of ERP, HR, and payroll. – positive

 

·      M&M - Swaraj Tractors, part of the Mahindra Group, launched a Compact Light Weight tractor range called the 'Swaraj Target'. - Positive

 

·      Jyoti Ltd - Company has secured a prestigious order of Rs. 6.21 Crores from IOC – Positive

 

·      Mphasis– Company has signed a definitive agreement to acquire 100% of the shares in eBECS Limited (a wholly owned subsidiary of DXC UK International Operations Limited), (the "Acquisition"), subject to fulfilment of closing conditions. eBECS Limited is a subsidiary of DXC UK International Operations Limited. It is one of the largest Microsoft Dynamics partners in the UK and Ireland region. – positive

 

·      Apollo Hospitals Seeks $200m From Digital Unit Stake Sale: Apollo Hospitals plans to raise around $200million by selling as much as 6% stake in its omni channel health care digital unit Apollo HealthCo, The sale is expected to value the company $2.5 billion to $3 billion. Apollo HealthCo owns digital health platform Apollo 24/7, a pharmacy distribution business, and a 25.5% stake in Apollo Pharmacies.

 

·      IndiGo to Start Flights to Six New International Destinations - Biggest airline InterGlobe Aviation, which flies under the IndiGo brand, will start flights to six new international destinations across Asia and Africa – Positive

 

·      Bank of Maharashtra – Company announced the launch of its qualified institutional placement to raise funds, beginning June 1, 2023 late Thursday. The bank plans to raise funds via the QIP issue at the floor price of Rs 29.98 a share.  The board of directors will reconvene on June 6, 2023, to determine the issue price for the allotment to QIP.

 

·      SJVN: The company signed a project development agreement of 669 MW Lower Arun Hydroelectric Project in Nepal. The company is also developing a 217 km long associated transmission network for power evacuation and export to India. – Positive

 

·      NTPC: Company signed a deal with Uttar Pradesh Rajya Vidyut Utpadan Nigam to develop renewable energy parks and project in Kalikot – positive

 

·      GAIL (India): The company infused into JBF Petrochemicals Rs 2,101 crore, including equity worth Rs 625 crore and debt worth Rs 1,476 crore, under the resolution plan for the latter. With this, JBF Petrochemicals has become a wholly owned subsidiary of GAIL. - positive

 

·      Prism Johnson: Of the proposed investment to acquire a 45% stake in Renew Green (MPR Two), the company has acquired 72.76 lakh shares for Rs 7.28 crore.-  positive

 

·      Affle (India): Affle International Pte., a wholly owned Singapore subsidiary of the company, has completed the 100% acquisition of YouAppi Inc. - positive

 

·      Anmol India – Company approves bonus issue of 4 shares for every 1 held - Avoid

 

·      Greenply Industry approves disposal of Myanmar unit asset – positive to exit non-core business.   

News and Impact

News and Impact

 

 

·      Hope of US Fed to pause hike in interest rate and negotiation of US debt ceiling deal lifted across the global market between 1-2%. The S&P 500 index and Nasdaq Composite (up 1% each) closed at their highest levels in more than nine months on Thursday, boosted sentiment with Congress making progress on raising the debt ceiling, support coming from U.S. economic data and some Federal Reserve officials who suggested there may be no need to raise interest rates again in June. As a results, US Vix nosedive (Volatility Index) 15% to close over 12-month low and fall in Dollar Index. Back home, SGX Nifty is up half percent or 74 points on account of strong domestic factors.  Manufacturing PMI during the month of May reported 31-month high which indicated strong growth in the manufacturing and factory growth. Moreover,  May GST collection remain strong of above Rs1.5lakh cr in a 5-month row and impressive auto monthly sales volume will be positive for the market sentiment. Strong FY23 GDP growth, impressive Q4 results, fall in oil price and IMD predicated normal monsoon will add fuel in the market sentiment. Yesterday, market fell by half percent but Nifty 500 stocks advance decline ratio was favourable at 1.6:1. Expects momentum continue on mid- cap and small cap stocks. Tech stocks may be positive after Global IT major Index Nasdaq Composite closed 9-month high. Metal stocks will be in focus as base metal price on LME surged to 2-week high. Auto stocks will be positive after announced strong monthly sales data. US Voting on debt ceiling  and US Job data likely to be held today. 

 

·      US Market   – US stock indexes closed higher as signs of slowing wage pressure on inflation raised hopes the Federal Reserve will pause raising interest rates in two weeks, and investors welcomed a vote in Congress to suspend the debt ceiling. Both Nasdaq and S&P 500 gained 1% to close at 9-month high while Dow Jones gained half percent.

 

·      Global market summary – US Vix (Volatility Index) declined 15% to close over 12-month low. S&P 500 and Nasdaq Composite closed 9-month high.  Brent crude fell to 1-month low, US Voting on debt-ceiling ling. Base metal price on LME 2-week high.

 

·      Asian Market – Asia stocks advanced after a renewed rally in tech giants pushed Wall Street higher ahead of jobs data due Friday as investors assess the likelihood the Federal Reserve will pause interest rate hikes in June. Hong Kong (up 2%), South Korea, Taiwan and Japan Index advance half to one percent.

 

·      European Market - : European stocks rose as investors received a positive euro zone inflation data along with reports of the US House of Representatives passing a bill to avoid a catastrophic debt default. UK and France Index gained over half percent each. Germany Index gained 1%.  European Union May Inflation fell to 6.1% vs expectation 6.3% (previous month was 7%).

 

·      Oil –  Brent Crude is trading flat at $74/bbl but biggest weekly loss in a month as persistent concerns over demand weigh on the market ahead of an OPEC+ meeting.

 

·      Gold –   Gold gained 1% to $1978/ounce after traders pared bets on further tightening this month following a flurry of data that showed some progress on getting inflation under control.

 

·      Previous Day market Update – Equity benchmark indices closed in the red for the second straight day after investors booked profits on gains following stronger-than-expected domestic growth data, and receding bets of a US rate hike. However, Nifty mid-cap and small cap stocks continued its northbound journey and ended on a record high. Nifty 500 stocks advance decline ratio was favorable at 1.6:1 due to trader shifted from large cap to small and mid-cap counters.. Upbeat in domestic sentiments after FY23 GDP growth reported at 7.2% (expectation 7%), over 24-month high FIIs net inflow during the month of May, impressive Q4 results (double digit revenue growth) and IMD predicated normal monsoon. Moreover, Manufacturing PMI during the month of May reported 31-month high and reported impressive auto monthly sales. Traders were booking profit in the last two trading sessions after the bank Nifty surged to record high and Nifty just 1.5% away from the all time high.  Sensex ended 194 points lower 0.3% to settle at 62428, dragged by banking and financial stocks. The broader Nifty dropped 46 points or 0.25% to end at 18,488. FIIs were net sellers Rs71cr while DIIs were net buyers Rs489cr yesterday.

 

·      Nifty Technical Levels – Nifty formed a Bearish Belt Hold candle on daily scale and has been forming lower lows from the last three sessions. Now it has to find support near 18442 zones, then only we can witness a bounce towards 18580 and 18666 zones while a hold below 18442 could open the further decline towards 18333 and 18181 zones.

 

·      Bank Nifty Technical Levels – Bank Nifty formed a Bearish Belt Hold Candle on daily scale as selling pressure was seen at higher zones and index ended with losses of around 340 points. Now till it holds below 44044 zones some weakness could be seen towards 43500 then 43333 levels while on the upside hurdle is seen at 44144 then 44250 zones.

 

·      Actionable BUY – Sun Pharma, Tata Motor, HAL, Eicher, Parras Defense

 

·      Brokers Radar – CLSA TGT on ICICI Prudential at 575, Adani Ports TGT by Philips Securities at 930, ICICI Prudential TGT by CLSA at 57 and Morgan Stanley TGT at 600. Bajaj Auto TGT by Macquarie at 4541. DR Reddy ADR TGT raised by Barclays to $70 FROM $66

 

·      Events – Birla Corp board meeting for fund raising, Coal India OFS for Retail at Rs225

 

·      Corporate Action  - Mahindra Rs2.50,  Infosys Rs17.50, Indusind Bank Rs14,  Steelcast Rs3.15, SYLPH TECHNOLOGIES stock split from Rs10 Re1

 

·      Global Data – Change in Non-farm payroll, Private payroll, Unemployment (US), Industrial Production (IIP) and Manufacturing Production (France). 

 

·      Market Summary – Govt. to Ask Airlines to Keep Fares in Check After Go Air Crisis, GST Collections Grow 12% To Rs 1.57 Lakh Crore In May, NHPC inks initial pact with Nepalese utility to develop 480 MW , Maruti, Escorts, M&M, Eicher, Ashok Leyland, Tata Motor, Eicher, TVS Motor and Bajaj Auto announced imprrssive Monthly sales volumes, May Manufacturing PMI rises to highest since Oct. 2020, 31 months high, S&P Affirms Reliance Industries 'BBB+' Ratings; Otlk Stable, US Set to Allow GE to Make India Military Jet Engines: Reuters, TVS hikes electric scooter prices by Rs 17,000-20,000

 

·      NHPC - State-owned hydro power giant NHPC inked an initial pact with Nepalese utility Vidhyut Utpadan Company for developing a 480 MW Phukot Karnali hydroelectric project. – Positive

 

·      Aster DM Healthcare – Company has entered into Hospital Operation and Management Agreement with Padmavathy Medical Foundation (PMF) on May 31, 2023. PMF is a 130-bed tertiary super specialty hospital situated in Sasthamkotta, Kollam District, Kerala. With this total installed capacity of the Company shall be increased to 4,547 beds.- positive

 

·      Autoline Industries - Company has received offer from Tata Motors Ltd. to setup a facility at Sanand, Gujarat to cater with the automobile parts to Tata Motors – positive

 

·      Paras Defence – Company have entered into a Joint Venture Agreement with CONTROP Precision Technologies Limited ("CONTROP"), Israel, with the purpose of undertaking business of manufacturing / production, implementation / installation, Integrated Logistics Support ("ILS"), after sale support, training etc.,

 

·      Coal India: Centre’s offer for sale (OFS) of shares in Coal India received a robust response from non-retail or institutional investors and the issue was subscribed 3.46 times on Thursday

 

·      TVS Motor – Company increased the price of its TVS IQube electric scooter by Rs 17,000 to Rs 20,000 depending on the variant – positive

 

·      The goods and services tax (GST) collections for the month of  May stood at Rs 1.57 lakh crore, a growth of 12 percent over the year-ago period. The monthly GST revenue is at more than Rs 1.4 lakh crore for 14 months in a row, with Rs 1.5 lakh crore crossed for the fifth time since inception of GST. Last month, GST collection was at a record high of Rs 1.87 lakh crore.- Positive for the market sentiment – to reduce fiscal burden and indicating all round growth in economy after announced solid GST collection.

 

·      Airlines stocks – The government is working with airlines to bring fares under control after Go Airlines India’s collapse led to a surge in ticket prices, Aviation Minister Jyotiraditya Scindia said at the Times Network India Economic Conclave 2023. – Any decline on Indigo will be buying opportunity.

 

·      US Set to Allow GE to Make India Military Jet Engines: Reuters –The Biden administration is ready to approve a deal that would allow General Electric Co. to make jet engines for Indian military aircraft, Reuters reports, citing three people familiar with the matter. The deal is expected to be signed and announced by the time President Biden hosts India’s Prime Minister Narendra Modi for an official state visit on June 22, the people told Reuters

 

·      Reliance Industries – Rating agency affirming our 'BBB+' long-term issuer credit rating on Reliance Industries. S&P says Reliance Industries operating performance is likely to remain resilient over the next two years – Positive

 

·      L&T: The power transmission and distribution business of Larsen & Toubro (L&T) has said it will set up infrastructure for the world’s largest green hydrogen plant being built by NEOM Green Hydrogen Company – positive

 

·      Aditya Birla Capital: Aditya Birla Capital on Thursday said it plans to raise ₹1,250 crore through a preferential issue of shares to its promoter and promoter group companies – positive

 

·      Power Finance Corporation: State-owned non-bank lender Power Finance Corporation (PFC) on Thursday said its Director (Finance) Parminder Chopra has been assigned the additional charge of the company's CMD - positive

 

·      TVS Motor - Company, said, "TVS Motor is spearheading the EV transformation narrative in the country. Backed by this electrification journey, TVS iQube recorded a sales milestone of 1 lakh units for its range of scooters in the last financial year, which is a testament of its strong community of happy customers. In May 2023, TVS iQube crossed 20,000 units of retails and continues to have a healthy booking pipeline of over 30,000 units." – positive

 

·      GOCL Corp –Company secured orders worth Rs257cr from Coal India for the supply of detonators,

 

·      NCC Company said it had received new orders worth Rs 2,088 crore in the month of May. 2023. Of the aforementioned amount, company's building division has signed the agreements for the orders amounting Rs. 1,668 crore and water division secured order for Rs. 420 crore – Positive

 

·      May Auto sales Update – Maruti, Escorts, M&M, Eicher, Ashok Leyland, Tata Motor, Eicher, TVS Motor and Bajaj Auto announced better than expected monthly sales data - Maruti Total sales at 178083 uint (up 10% YoY) – expectation 164746 unit, M&M total sales at 95541 unit (up 14% YoY) – expectation 95471. Escorts May sales at 9167 unit (up 9% YoY) – expectation 7891. Bajaj Auto May sales at 355148 unit (up 29% YoY) – expectation 326724. Tata Motor reported 73448 vehicles (down 2% YoY) – Expectation 71058, Ashok Leyland reported 13134 vehicles (down 1% YoY) – Expectation 12926. TVS Motor reported 330609 units  (up 9.1% YoY) – Expectation 325724 unit.

 

·      NMDC – Company reported iron ore sales during the month of May at 3.62mt (up 37% YoY) and production increased to 3.71mn tons (up 16% YoY) – positive

 

·      May Manufacturing PMI rises to highest since Oct. 2020 – Manufacturing PMI during the month of May reported at 58.7 vs 57.2 previous month

 

·      Birlasoft – Company has launched bCloud+, an end‐to‐end solution to help enterprises migrate on‐premises Oracle JD Edwards instances to Oracle Cloud Infrastructure (OCI). – positive 

 

·      Mastek – Company has considered and approved the appointment of Mr. Hiral Chandrana, as a Chief Executive Officer and Key Managerial Personnel of the Company with effect from May 31, 2023. Further, he shall continue to be the Global Chief Executive Officer of the Mastek Group Subsidiaries. - positive

 

·      South India Bank - Board approved a panel of candidates for the position of managing director and chief executive officer. As per the norms set by the Reserve Bank of India, the bank will now submit its application to the RBI with the names of the candidates in order of preference seeking approval for the appointment of the positions. – positive… stock gain 10% yesterday

 

·      Mphasis Ltd – Company launched a business unit that aims to help clients integrate AI capabilities into their existing technology platforms. The unit Mphasis.ai will offer clients advisory to identify key AI interventions for tasks such as contact center transformation, customer experience transformation. - positive

 

·      Adani Enterprises: Adani Road Transport, a wholly-owned subsidiary of Adani Enterprises, has decided to terminate the agreement to acquire Macquarie Asia Infrastructure Fund's (MAIF) toll road in Andhra Pradesh, Gujarat for ₹3,110 crore

 

 

News and Impact

News and Impact

 

 

·      Expects market to open on a positive note after the news that the US House passed on debt-ceiling bill in 314-117 vote, easing US default concerns.  Asian markets recovered from the intra-day low and US Future bounced back into positive territory after the news that the US Congress passed debt-limit legislation forged by President Joe Biden and Speaker Kevin McCarthy. In the domestic front, better than expected FY23 domestic GDP data, over 24-month high FIIs net inflow during the month of May, impressive Q4 results (double digit revenue growth) and IMD predicated normal monsoon will be positive for the market sentiment. Yesterday, Index decline over half percent due to profit booking. However, Nifty 500 stocks advance decline ratio was favorable at 1.3:1.  SGX Nifty declined by quarter percent or 50 points. Any decline will be good opportunity to buy in Indian bourse. FIIs were net buyers nearly Rs28000cr or $3.5bn during the month of May, highest since Feb 2021. Domestic Q4 GDP data reported at 6.1% while expectation was 5% on account of strong growth in the manufacturing, Infra and financials sectors. US Bond yield declined yesterday after the US Fed officials indicating to pause on hike in interest rate in the next policy meeting. Intra-day volatility may not be ruled out on ahead of weekly Nifty and Bank Nifty expiry. Auto stocks will be in focus ahead of monthly sales data to be release today. Government cut ATF fuel price will be positive for airlines stocks. Expects positive for hotel and Restaurant stocks after news that the government cut gas cylinder price.

 

·      US Market   – U.S. stocks ended lower on Wednesday as investors waited for a House vote on the debt ceiling deal to avert a potential default. Both Dow Jones and Nasdaq Composite declined half percent each.

 

·      Global market summary –  The US House passed debt-limit legislation forged by President Joe Biden and Speaker Kevin McCarthy that would impose restraints on government spending through the 2024 election and avert a destabilizing US default. Lawmakers from both parties joined to approve the bill 314-117 Wednesday evening, sending the measure to the Senate for

·      consideration as a default deadline draws near. European markets witnesses biggest monthly decline during the month of May. 

 

·      Asian Market – Stocks fluctuated in Asia on Thursday as the House began voting on the US debt ceiling deal and investors weighed the prospect of a pause in rate hikes from the Federal

·      Reserve this month. Japanese and Australian shares rose, those in South Korea edged lower and US equity futures swung between small gains and losses.

 

·      European Market – European stocks closed May with their biggest monthly drop this year as luxury companies slumped after data showed China’s economic recovery faltering and concern of US Debt ceiling negotiation. UK, Germany and France Index declined over 1% each. 

 

·      Oil –  Oil fell for a third day as industry data pointed to rising US crude stockpiles with demand concerns hanging over the market. Brent Crude declined 2% to $72/bbl

 

·      Gold –   Gold rose for a third day as traders pared bets for more tightening from the Federal Reserve ahead of a vote on the US debt-limit deal. Gold gained 1% to $1966/ounce

 

·      Previous Day market Update – After a rally in the last four trading sessions, the benchmark of the equity Index slipped over half percent on account of profit booking amid weakness in the global market. Across the global markets declined as concerns about US debt-ceiling deals and weak manufacturing PMI data announced from the world's second-largest economy China impacted the market.  Investors were booking profit ahead of domestic GDP data to be released in the post-market hours today. Banking and metal stocks were major losers today while FMCG, telecom, Nifty mid-cap and small cap stocks posted smart gains. Buying interest came in the last hour on account of MSCI Index final day for re-balancing. Stocks like Sona BLW, ABB, Kotak Bank, Zomato, Max Healthcare soared between 3-8% from the intra-day.  Nifty 500 stocks advance-decline ratio was 1.3:1. There was bullish sentiment in the market on account of strong FIIs buying interest, impressive quarterly results, a fall in oil price, and strong micro economy data. Sensex dropped 347 points, or 0.6%, to close at 62,622, while it touched low of 62401. Nifty slumped 99 points, or 0.5%, to close at 18,534 while touching intra-day low of 18484.  FIIs were net buyers Rs2090cr while DIIs were net sellers Rs439cr yesterday.

 

·      Nifty Technical Levels -  Nifty formed a Bearish candle on daily scale but with longer lower shadow indicating support levels are held intact. Now it has to hold above 18500 zones, for an up move towards 18666 and 18888 zones while on the downside support exists at 18442 and 18333 zones.

 

·      Bank Nifty Technical Levels – Bank formed a Bearish candle on daily scale with long lower shadow as buying is visible at lower zone but ended in the negative territory near its crucial 44144 marks. Now it has to continue to hold above 44144 zones for an up move towards 44500 then new life high of 44750 zones while on the downside support exists at 43850 then 43600 zones.

 

·      Actionable BUY – Tejas, Tech Mahindra, Borosil, Dixon Tech, IndiGo, Indian Hotel

 

·      Brokers Radar –  Citi Union Bank TGT by Macquarie at 140, Coal India Citi TGT at 240

 

·      Events –Weekly Nifty and Bank Nifty expiry, Coal India OFS for Non-retail at Rs225 (CMP 241). Ab Capital board meeting for fund raising. Escorts price hike on tractors to implement from today.

 

·      Corporate Action  - Aptech Rs6, Shree Cement Rs55

 

·      Global Data – Non-Farm Productivity, Initial Jobless Claims, Manufacturing PMI and Construction Spending. (US), Consumers Credit, Manufacturing PMI and Mortgage Application(UK). Manufacturing PMI (France). Manufacturing PMI (Germany).

 

·      Market Summary – Govt to sell up to 3% in Coal India via OFS, Domestic GDP grows at 6.1% in March quarter; FY23 growth at 7.2%, Dixon Techs To Partner With Xiaomi To Make Mobile Phones, PTC India Signs Two Long-Term Power Purchase Agreement, No Plans to Pare Stake in Vedanta Ltd., Anil Agarwal Says, SBI Cards Plans To Raise Rs 3,000 Crore From Debentures

 

·      GDP Growth ahead of expectation - Economy grew faster than the government’s expectations last year, as demand spurred an expansion in the services sector and cushioned the impact of elevated interest rates. Q4 GDP grew at 6.1 per cent (YoY) vs previous quarter 4.4% - Bloomberg expectation 5%FY23 GDP growth at 7.2% vs 9.1% (YoY) – Expects positive for the market sentiment on account of strong growth in manufacturing, Infra and financials.

 

·      SBI Card - Company plans to raise up to Rs 3,000 crore by issuing debentures to fund business growth.- positive

 

·      Focus on Airlines stocks  - ATF price was reduced by Rs 4,606 per kilolitre, or 4.09 per cent, to Rs 107,750.27 per kilolitre (kl) in the national capital, according to a price notification of state-owned fuel retailer – Positive for IndiGo

 

·      Coal India OFS - The government will sell up to 3% of its stake in Coal India to raise about Rs4,200 crore through a two-day offer-for-sale (OFS) from Thursday. The offer price at Rs225 a share, 7% discount against the previous day’s close at Rs241. Non-retail segment for to today while retail segment for tomorrow. – Buying opportunity

 

·      Laurus Lab – Company to buy 7.24% more stake in Immunoact for Rs80cr. Company’s stake in Immunoact to increase to 33.86%

 

·      MOIL: The company increased prices of manganese ore grades BGF452, CHF473 and GMF569 by 10%, effective from the June 1. - positive

 

·      Tata Motors: The company is looking to buy back external commercial bonds worth $250 million from bond holders.- positive

 

·      HFCL: The company will spend Rs 470 crore to expand current optical fibre capacity to 33.9 million fibre kilometer per annum from 10 million fibre kilometer per annum at its manufacturing facility in Telangana – positive

 

·      Vinati Organics: The company bought additional 65.97 lakh shares of subsidiary Veeral Organics for Rs 6.59 crore.

 

·      Lemon Tree Hotels: The company will acquire 9.67 lakh compulsorily convertible preference shares of Fleur Hotels from APG Strategic Real Estate Pool NV at Rs 505 apiece, resulting in a total outgo of Rs 48.84 crore.

 

·      Steel Authority of India: Amarendu Prakash has taken over as chairman of the company – positive

 

·      Rainbow Children’s Hospital: The company appointed Vikas Maheshwari as the chief financial officer, effective June 1, following resignation of R Gowrisankar from the position. - positive

 

·      Vedanta - Billionaire Anil Agarwal has no plans to reduce his stake in Vedanta, the chairman of parent Vedanta Resources said Wednesday, adding that the company could explore the option only if the need arises in the interest of the country. Vedanta Resources has a very comfortable debt-to-equity ratio – Long term positive

 

·      Dixon Technologies – Company and Xiaomi India plan to partner for manufacturing and exporting mobile phones from India, as a part of its 'Make In India' commitment.- positive

 

·      PTC India - Company has signed two agreements for purchase of 215 MW electricity on a long term basis with Brookfield Renewables for purchase of 100 MW solar power, another pact is with V S Lignite for purchase of 115 MW thermal power.- Positive

 

·      Vedanta Resources pays off all its maturing loans and bonds due in May and June 2023. Vedanta’s gross debt stands at $6.4 billion, as of today, down from $6.8bn at the end of April 2023. Long term positive

 

·      Himadri Speciality – Company invests AU$ 10.32 million or Rs 55.43 crore in Sicona Battery Technologies Sicona is an Australian startup specializing in silicon anode technology for lithium-ion batteries.

 

·      Poonawalla Fincorp will sell 24.98 crore shares in its unit Poonawalla Housing Finance to Perseus SG Pte., a TPG Global LLC entity.  RBI has approved the proposed divestment – positive

 

·      Focus on logistic and food grain stocks - The government will bring a policy for world's biggest food grain storage scheme under the cooperative societies sector. The government will make an allocation of approximately Rs 1 lakh crore. Under this scheme, a godown of a capacity of 2000 tonnes will be constructed in every block – Expects positive for KRBL, Godrej Agrovat, Container Corp, Aegis Logistic,

 

·      Mahindra & Mahindra: The company incorporated subsidiary Mahindra Last Mile Mobility to manage its three-wheeler and small commercial vehicle businesses. The auto major also incorporated a step-down subsidiary, Icarus Hybren, to run the renewable energy production and distribution business. - positive

 

·      Axis Bank: The board appointed former RBI deputy governor NS Vishwanathan as an additional director for a period of four years, up to May 29, 2027. - positive

 

·      Aurobindo Pharma: The company received tentative new drug application approval from the U.S. FDA for HIV drugs Dolutegravir, Entricitabine, and Tenofovir Alafenamide tablets. – positive

 

·      Sun Pharm: The company received approval from China’s National Medical Products Administration for its new drug application of tildrakizumab injection, used to treat moderate-to-severe plaque psoriasis. - positive

 

·      Lupin: The company entered a strategic collaboration with Enzene Biosciences to launch Cetuximab in India, used in treatment of head and neck cancer. - positive

 

·      Welspun Corp - Company guided for a 50% growth in its revenue over FY24 to approximately Rs 15,000 crore, as per the company's investor presentation. Welspun also targets increasing natural gas consumption from 6% to 15% of the energy mix by 2030. It also expects refining capacity to increase from 250 MTPA to 450 MTPA over the next few years. – Positive

 

·      Birlasoft – Company has launched bCloud+, an end‐to‐end solution to help enterprises migrate on‐premises Oracle JD Edwards instances to Oracle Cloud Infrastructure (OCI). – positive 

 

·      Mastek – Company has considered and approved the appointment of Mr. Hiral Chandrana, as a Chief Executive Officer and Key Managerial Personnel of the Company with effect from May 31, 2023. Further, he shall continue to be the Global Chief Executive Officer of the Mastek Group Subsidiaries. – positive.

 

·      Deloitte Flags Adani Port Transactions Citing Lack of Review -  Adani Ports’s auditor said insufficient disclosures over transactions with certain entities means it can only issue a qualified opinion on the company’s accounts, returning the spotlight to allegations made by short seller Hindenburg Research on Gautam Adani’s empire. Deloitte Haskins & Sells LLP raised concerns on Tuesday over transactions with three entities, which the company said were unrelated parties. But the auditor said it could not independently confirm that the parties were indeed unrelated, and that the company has refused to get an independent external xamination that would help prove so.