News and Impact

News and Impact 

 

 

·      There was smart recovery in the US market from intra-day low, may open domestic market on a flat note. However, concern about rising global inflation, US Fed hawkish commentary and significant hiked interest rate by the euro zone area may be dampening the market sentiment. Overnight, US market gained by 1% led by heavyweight Amazon and Microsoft after the US Fed concluded its two days testimony in the US congress. Bond yields climbed after major central banks warned about the potential for more interest-rate hikes, with officials signaling they’re nowhere near ready to declare victory over inflation. Yesterday, both Bank of England and Norges Bank (Norway) raised the key interest rate by 50bps, above the market expectation (25bps expectation) while The Swiss National Bank (SNB) hiked the interest rate by 25bps. Asian markets fell up to 1% while SGX Nifty slipped quarter percent. Back home, domestic market is better place than the global peers due to May inflation fell to 25-month low and WPI inflation declined to 8-year low. Moreover, stable oil price, FIIs participation and huge capex by domestic players will be positive for the market sentiment. Any dips will be good opportunity to buy in the domestic bourses due to bullish sentiment in the market. Yesterday, both Sensex and the Nifty ended lower mirroring their global peers. Traders were booking profit after the Nifty was just an inch (1 point) away from the record high. Today focus on defense stocks after the US and India signed defense deal. IT stocks will be in focus after global peer Accenture cuts the top end of its full-year revenue growth guidance in its quarterly results announcement.

 

·      US Market   – US equities snapped a three-day losing streak as investors analyzed a second day of congressional testimony from Federal Reserve Chair Jerome Powell. Dow Jones ended marginally decline while Nasdaq Composite gained 1% led by tech heavyweight Amazon.com Inc. and Microsoft Corp. adding the most to the gains. However, US market recovered 1% from the intra-day low.

 

·      Global market summary – Bank of England hiked interest rate by 50bps to 5%, highest level since 15 years while expectation was 25bps hike to 4.74%. The Swiss National Bank (SNB) hiked the interest rate by 25bps to 1.75%. Norges Bank (Norway) raised the key interest rate by 50bps to 3.75% from 3.25%. US 10 Years and 2-year bond surged to 1-month high. Gold price fell to 3-month low.

 

·      Asian Market – Asian stocks turned modestly lower today amid elevated bond yields following a spate of central bank rate hikes. Japanese shares erased initial gains as investors weighed inflation data that was stronger than expectation. Japan, South Korea and Australia Index marginally decline HALF . China market is shut today.

 

·      European Market – European equities extended declines to a fourth day on hawkish signals from policy makers as the Bank of England surprised the market with a bigger-than-expected rate

·      increase, fueling further fears of an economic slowdown. Yesterday, Bank of England hiked interest rate by 50bps to 5% while expectation of 25bps hike interest rate. UK, Germany and France Index eclined half percent each.

 

·      Oil –  Brent Crude declined 3% to $74/bbl after the Federal Reserve signaled that further rate hikes were needed, bruising appetite for risk, aiding the dollar, raising the prospect of an economic slowdown and increase US oil inventory.

 

·      Gold – Gold slipped 2% to 3-month low at $1915/ounce after the Federal Reserve Chair Jerome Powell reiterated the central bank will continue raising interest rates and expectations of Colling down global demand.

 

·      Previous Day market Update –Snapping their two-days winning run, equity benchmark indices the Sensex and the Nifty ended lower mirroring their global peers. The risk appetite of investors remained low on concerns over rate hikes a day after Federal Reserve chairman Jerome Powell said the US Fed would bring more hikes this year. Traders were booking profit after the Nifty was just an inch (1 point) away from the record high. Both Asia and European equity markets decline 1% each. Today, the Swiss National Bank (SNB) hiked the interest rate by 25bps to 1.75% while UK and Norway announced interest rate decisions today. Nifty mid-cap and small-cap stocks were major losers today and declined 1% each. Nifty 500 stocks advance-decline ratio was 1:3. Nifty slipped 85 points or 0.4% to close below the 18800 level at 18771 while touching intra-day high of 18886 just a single point away from the record high. Sensex opened at a fresh all-time high level of 63,602 against the previous close of 63,523 but failed to hold altitude and closed 284 points, or 0.45 percent, lower at 63,239. Auto, IT, and banking stocks were major losers today while sugar stocks witnessed fresh buying. Yesterday, FIIs were net sellers Rs693cr while DIIs were net buyers Rs219cr.

 

·      Nifty Technical Levels – The index is struggling at record high levels and whipsaws can be seen in the market. It formed a Bearish candle or an outside Bar on daily frame and closed with losses of around 85 points. Now it has to hold above 18777 zones to witness an up move towards 18888 then 19000 zones while on the downside support exists at 18710 and 18666 zones.

 

·      Bank Nifty Technical Levels – Bank Nifty formed a Bearish candle on daily scale as selling pressure is seen at higher zones but multiple support is still intact at lower zones. Now it has to cross and hold above 43750 zones for a bounce towards 44044 then 44250 zones while a hold below the same could see some weakness towards 43500 then 43333 marks.

 

·      Actionable BUY – L&T, Fortis, HAL, PNB Housing

 

·      Brokers Radar – Jefferies on IT stocks - Tech Mahindra TGT at 930, HCL Tech TGT at 1210, Coforge TGT at 4150 from 3760, LTIMindtree TGT at 4100 and Infosys TGT at 1550, JP Morgan TGT on UltraTech at 7020. JP Morgan TGT on Bajaj Auto at 5400.

 

·      Events – Tata Consumers to delist its ADR from London stock exchange, Shilpa Medicare board meeting for fund raising.

 

·      Corporate Action  - VLS Finance Rs1.50, Tata Elxsi Rs60, Tata Steel Rs3.50, Dalima Bharat Rs5, Dhampur Bio Rs3.50, Torrent Rs8

 

·      Global Data – Manufacturing PMI, Service PMI and Composite PMI. (US).  Consumers and Retail sales in Auto (UK). Manufacturing PMI, Service PMI and Composite PMI (Germany). Manufacturing PMI, Service PMI and Composite PMI (France).

 

·      Market Summary – GE Signs MoU to Make Engines for India’s Light Combat Aircraft,  L&T Signs Pact With India DRDO for Submarines Propulsion System,  Fitch raises India's GDP forecast to 6.3% for current fiscal year, Bharti Airtel to Acquire 12% Stake in Indian Solar Power Company, LTTs extends partnership with PCT, Fortis to sell Chennai Hospital, Fortis Healthcare to divest its Vadapalani, Chennai Hospital Business Operations, Luxury Homes Drive Mumbai Sales As Inventory Falls 24%, Says Anarock

 

·      Watch on Software Company - Technology stocks may move after global peer Accenture cuts the top end of its full-year revenue growth guidance.  Accenture sees full-year revenue growth between 8% to 9%, compared with a prior view of 8% to 10% - Accenture declined 2% yesterday.

 

·      L&T Signs Pact With India DRDO for Submarines Propulsion System – Company signed a contract with India’s Defence Research and Development Organisation for two submarines propulsion system modules. The Air Independent Propulsion system modules are for Kalvari class submarines of the Indian Navy – positive

 

·      HDFC: The company divested 9.65% of its stake in Ruralshores via the buyback route. It also sold its entire stake in HDFC Property Ventures and HDFC Venture Capital to Vividh Distributors for a consideration of Rs 1.2 crore and Rs 30 lakh, respectively. - positive

 

·      Bharat Petroleum Corporation: The company will consider fund-raising various modalities on June 28 for a capital infusion, including rights issues. - positive

 

·      PNB Housing and Finance: T. Adhikari has been appointed as Chief Operating Officer of the company.- positive

 

·      Vedanta: The company refuted media reports stating the sale of the Sterlite Copper Plant in Thoothukudi. It said that the reports are "wrong, baseless, and incorrect."  - positive

 

·      Coforge: The company acquired the final tranche of shares of the remaining 20% stake in Coforge Business Process Solutions for Rs 336.94 crore, taking its total stake to 80%.- positive

 

·      HBL Power Systems: The board is going to consider approving a proposal for the slump sale of two product lines, Power Electronics and Integrated Power Supplies, to Moebius Power Electronics on June 28. – positive

 

·      Wipro – Company announced the inauguration of its new office at Sable Park, Century City, in Cape Town, underscoring its commitment to clients in the region – long term positive

 

·      Sula Vineyard  - IndiGo has announced an exciting collaboration with Sula Vineyards and Fratelli Vineyards to offer exclusively curated holiday experiences for all its Nashik and Pune-bound customers, respectively  - positive

 

·      Gujarat Alkalies – Company had earlier announced about updates on 10,000 TPA (80%) Hydrazine Hydrate Project, with forward integration to Hydrogen Peroxide, for the manufacturing of an import substitute at Dahej Complex. The Company has achieved commercial production of Hydrazine Hydrate at Dahej Complex. – positive

 

·      Cyient DLM Sets Price Band For Rs 700-Crore IPO That Opens On June 27 - Cyient DLM Ltd., a unit of IT services firm Cyient Ltd., has set the price band for its Rs 700 crore initial public offering, in the June 27–30 with IPO at a valuation of Rs 2,100 crore. Cyient holds a 92.84% stake in its subsidiary. Cyient current market cap Rs16500cr - Positive,

 

·      Hindustan Aeronautics – GE Aerospace signed a memorandum of understanding with Hindustan Aeronautics Ltd. to produce fighter jet engines that would power the Indian Air Force’s Tejas Light Combat Aircraft Mk2. The agreement includes the potential joint production of GE Aerospace’s F414 engines in India - positive

 

·      Fortis Healthcare – Company announced signing of definitive agreements for sale of its hospital business operations at Vadapalani, Chennai to Sri Kauvery Medical Care  for a sale consideration of Rs152 Crore.

 

·      L&T – Company expanded its hi-tech manufacturing capability, inaugurating a new state-of-the-art, advanced Heavy Wall Pressure Vessel facility in Saudi Arabia – Positive

 

·      Natural Capsules – Company has announced a significant milestone in its growth journey with the strategic investment from Somerset Indus Capital Partners, a prominent healthcare-focused private equity fund. Somerset Indus Capital Partners, known for its expertise in the healthcare sector, has invested approximately Rs. 75 crores at a pre-money valuation of Rs. 250 crores in Natural Capsules Ltd – Positive

 

·      Madhav Infra Projects – Company receives LOA for construction of Railway Over Bridge worth Rs37.07cr – positive

 

·      Hazoor Multi Projects – Company received work commencement approval-work order for Eight Lane access controlled Expressway (Shirsad to Akoli section - Spur of Vadodara Mumbai Expressway Project)in the state of Maharashtra on EPC mode worth  Rs.352.80 crores – positive

 

·      Ambuja Cements and ACC,- Both companies honored to be recognised among 'India's Top 50 Most Sustainable Companies' cross-industry by BW Businessworld – Long term positive

 

·      Fitch raises India's GDP forecast– Global rating agency Fitch Ratings revised upwards its FY24 economic growth forecast for India to 6.3 per cent from 6 per cent it had predicted earlier. This is primarily because of a stronger outturn in the first quarter and near-term momentum. – positive for the market sentiment

 

·      Zee  Entertainment - Economic Times reported CEO Punit Goenka as saying the company’s merger with a Sony subsidiary will go through regardless of whether he is the CEO of the amalgamated firm.

·      Goenka told the newspaper that his frequent interactions with Sony don’t seem to indicate that the deal is wavering – expects volatile on the stock

 

·      Bharti Airtel to Acquire 12% Stake in Indian Solar Power Company - Bharti Airtel has agreed to acquire a 12.1% stake in Egan Solar Power for Rs1.34cr. Egan Solar Power is a special-purpose vehicle formed to operate a captive solar power plant.- positive

 

·      Rail Vikas Nigam emerges as the lowest bidder for two projects worth Rs 281 crore. The project is commissioned by the MP Poorv Kshetra Vidyut Vitaran Co. in Jabalpur. – positive

 

·      Focus on Housing stocks - Luxury housing sales continued to top charts post-pandemic, particularly in the Mumbai Metropolitan Region, where prices in the segment had dropped during the first wave. There had been a 24% yearly decline in MMR's unsold stock of homes priced above Rs 2.5 crore, according to data from Anarock Property Consultants Pvt.- Expects positive for Lodha, Oberoi Hotel, Godrej Properties

 

·      LTTs extends partnership with PCT – Company has announced an extension of its partnership with PCT to engineer solutions for aerospace, defense and transportation sectors. Company to provide mutual clients with digital support for design and manufacturing. – positive

 

·      Venus Remedies – Company gets marketing authorisation in Spain for Meropenem, a last-recourse antibiotic. - positive

 

·      Kalpataru Projects: The board approved raising Rs 300 crore via the issuance of unsecured, rated, listed, redeemable, and non-convertible debentures. – positive

 

·      Adani group stocks focus - US authorities are looking into what representations Adani Group made to its American investors following a scathing short seller’s report that accused the company of using offshore companies to secretly manipulate its share prices. The US Attorney’s Office in Brooklyn, New York, has sent inquiries in recent months to institutional investors with large holdings in the India conglomerate – Bloomberg report

 

·      RateGain Travel Technologies – Company announced the launch of its third update for its solution AI Audiences, an AI-powered model built using Adara's ecosystem of travel data. The dataset consists of search and booking data from over 270+ partners across flights, hotels, car rentals, live events and credit card expenditures. - positive

 

·      Fortis Healthcare – Company  will be selling it's Vadapalani hospital in Chennai to Sri Kauvery Medical Care for Rs 152 crore – positive 

 

·      Canara Bank – Company’s board to meet on June 28 to mull FY24 fund raising plan 

 

 

News and Impact

News and Impact

 

 

·      Expects market to open on a flat note on account of US equity futures is trading marginally green and mixed bag on Asian markets on ahead of the US Federal Reserve chief’s congressional testimony today. Expects, market may move on a narrow range today as investors brace for US Federal Reserve Chairman Jerome Powell's congressional testimony, which will be scrutinized for clues regarding how long the US central bank will keep its restrictive interest rate policy decision in place (Testimony means – financial outlook and recent monetary policy actions). Overnight, US market fell up to half percent while US 10-Year and 2-year bond fell 1% each and Dollar Index fell to below 14. SGX is down by 0.1% or 19 points. Yesterday, equity benchmark index bounced back into positive territory in the last hour led by buying interest in financial, IT, select auto, and metal stocks. Any decline will be good opportunity to buy on Indian equity on account of strong economy data, India Vix fell to nearly record low and stable oil price to support market from lower levels. Expects momentum to continue on defense stocks on hope of strong defense deal with US government. Banking and NBFC stocks will be in focus due to stable bond yield and hope of good monsoon to boost micro-finance business.

 

·      US Market   –U.S. stocks ended lower on Tuesday as investors waited for Federal Reserve Chairman Jerome Powell's testimony before Congress on Wednesday. Dow Jones slipped 0.7% while Nasdaq Composite marginally decline. US market recovered partially from the intra-day low ahead of US Fed Powell’s testimony to be release today.

 

·      Global market summary – US 10-Year and 2-year Bond Yield slipped 1% each. US Vix declined 3% to below 14. Gold price fell to 2-week low

 

·      Asian Market – Asian stocks are witnessing mixed bag ahead of Powell’s testimony later in the week and concern of delay by China stimulus. South Korea, Taiwan, Hong Kong Index marginally decline while Japan Index gained nearly half percent.

 

·      European Market - European Index drops for a second day, as economic headwinds mount and China stimulus disappoints. UK, Germany and France Index declined nearly half percent each. Chinese banks on Tuesday lowered their benchmark lending rates in line with last week’s central-bank cut, a modest reduction that disappointed investors and lower than expected rate cut by China.

 

·      Oil –  Oil edged lower by 1% to $75/bbl on concern that Chinese stimulus may undershoot expectations, and as investors prepared for commentary from the head of the Federal Reserve that may flag further monetary tightening.

 

·      Gold – Gold fell after a technical support gave way amid a rapid pullback in equity markets. The metal fell as much as 1.1%, with losses accelerating after it breached its 100-day moving average. The move followed a sharp drop in US and European stock markets from highs reached last week as sentiment turned bearish.

 

·      Previous Day market Update –The equity benchmark index bounced back into positive territory in the last hour led by buying interest in financial, IT, select auto, and metal stocks. Fag-end buying helped domestic equity benchmarks the Sensex and the Nifty to end higher,  despite weak global cues after China cut interest rates by less than expected. Nifty gained 61 points or 0.3% to close at 18817 while it touched the intra-day low of 18660. Sensex advance 159 points or 0.3% to close at 63328 while touching an intra-day low of 62802. India Vix fell nearly 1% to close at 11 levels.  Domestic markets posted a smart recovery today despite Asian and European stocks falling for a second day as worries about growth in the Chinese economy looms. Sentiments were boosted in the domestic market  on account of strong domestic economic data, stable oil prices, and impressive direct tax collection. FIIs were net sellers Rs1943cr while  DIIs were net buyers Rs1973cr yesterday.

 

·      Nifty Technical Levels – Nifty formed a Bullish candle on daily frame but broke its higher highs formation of the last five sessions. Now it has to hold above 18777 zones to witness an up move towards 18888 and 19000 zones while on the downside support exists at 18710 and 18666 zones.

 

·      Bank Nifty Technical Levels – Bank Nifty formed a Hammer kind of candle on daily scale as buying was seen from lower zones and closed near its 20DEMA. Now it has to hold above 43750 zones for a bounce toward 44044 then 44250 zones while on the downside support 43500 then 43333 marks.

 

·      Actionable BUY – BEL, REC, Persistent Systems. L&T, PEL, HDFC Life

 

·      Brokers Radar – HDFC Bank – Goldman Sachs TGT raised to 2050 from 1841. L&T TGT by CLSA at  2850. Morgan Stanley TGT on L&T at 2647. Goldman Sachs TGT on L&T at 2600

 

·      Corporate Action  - Oberoi Realty ex-dividend, IndiaMart ex-bonus 1:1. Ex-dividend - Victoria Mills Rs50, Cera Sanitaryware Rs50

 

·      Global Data – MBA Mortgage Application (US) – CPI and Retail Price Index (UK).

 

·      Market Summary – RIL gets RBI nod to retain extra $2 bn from lenders, Coforge Reiterates FY24 growth guidance, BEL won large defense orders, Piramal Seeks up to $564M in Shriram Finance Stake Sale

 

·      HDFC – HDFC received an approval from the Competition Commission of India to acquire more hares in HDFC Life Insurance and HDFC ERGO General Insurance – Positive for HDFC Life

 

·      Piramal Enterprises – Company offers 3.12cr shares, or 8.3% stake in Shriram Finance in a share placement. Company offered at floor price of Rs1,483 per share, nearly 5% discount against the previous day’s close. Piramal Enterprises current holding on Shriram Finance at 8.33% – Buying opportunity.

 

·      Reliance Industries - Company has received the RBI permission to retain $2 billion over and above the $3 billion. Central bank permission was sought because the amount collected was above the limits mandated. Company plans to use the money to fund working capital needs and to expand its new energy and telecom businesses. - positive

 

·      Coforge– Company is confident of meeting its growth guidance for fiscal 2024, despite fears of a washout for India’s $245-billion IT services industry. The Noida-based software services firm aims to grow its dollar revenue by 13-16% in FY24, building on incremental earnings from its clients—especially its 16 priority accounts that are likely to contribute 45% of its topline – Positive.

 

·      Bharat Electronics – Company has received orders worth Rs 5,900 crore, of which Rs 3,914 crore of orders are from the Akash Prime Weapon System. The public sector defence unit said it has received orders for two regiments of the improved Akash Weapon System with upgrades from BDL for a value of Rs 3,914 crore.  – positive

 

·      Pidilite Industries – Company announced the launch of its state-of-the-art manufacturing facilities under its two joint ventures, Pidilite Litokol Pvt Ltd (PLPL) and Tenax Pidilite Pvt Ltd (TPPL), in Amod, Gujarat. Litokol SPA Italy and Tenax SPA Italy have transferred technology to Pidilite as part of the Joint Venture

 

·      Bajaj Consumer – Company Care Limited has launched a new Product "Bajaj 100% Pure Henna – positive

 

·      Madhav Infra - Company receives LOA for order worth Rs. 37.07 crores – positive

 

·      RVNL – Company wins orders worth Rs1730cr from Chennai Metro Rail – Positive

 

·      NBCC – Company gets Rs50.67cr for construction of school – positive

 

·      Yes Bank – Company to consider raising funds via debt securities on June 23 board meeting

 

·      Lupin- Company has signed an MoU with the Maharashtra government to address rising cardiovascular and chronic obstructive pulmonary diseases in Palghar district.- positive

 

·      Aurionpro Solutions – Company approves preferential issue to Malabar India Fund, Malabar Midcap Fund nearly Rs70cr at Rs880 per share (CMP 1059)

 

·      Glenmark Pharma – Rating agency Fitch Affirms Glenmark Pharmaceuticals at 'BB'; Outlook Stable – positive

 

·      W.S. Industries bagged orders worth Rs. 371.82 crores from M/s.TRINEVA - JWIL (JV)  for Construction of "New Multi Village scheme - Combined Water Supply Scheme to Nagapattinam Municipality – Positive.

 

·      Can Fin Homes: The company’s board approved a fund raise of Rs 5,000 crore. It’ll raise Rs 4,000 crore via the issuance of on-shore and/or off-shore debt instruments and Rs 1,000 crore via QIP, preferential allotment, rights issue, or a combination thereof. – positive

 

·      Sun Pharmaceuticals: The company announced Health Canada's approval of PRWINLEVI (clascoterone cream 1%) for topical treatment of acne in patients 12 years of age and older. – positive.

 

·      Satin Creditcare – Company approved Rs54cr via debenture - positive

 

·      Paytm - India’s dream of developing a market for consumer-focused technology startups has gotten back on track as digital payments leader Paytm leads a $6 billion rally among peers so far this year. – media report.- positive

 

·      Dynacons Systems - Company receives Order Worth Rs 79.47 Crores From Union Bank Of India For Hyper-Converged Infrastructure – Positive

 

·      Infosys – Company announced that as part of its strategic collaboration with the ATP , the governing body of men's professional tennis, it is launching a new digital Carbon Tracker to make tennis more environmentally responsible - positive

 

 

 

 

News and Impact

News and Impact

 

 

·      Weak opening in the Asian markets, marginally lower in the US Future and overnight fall in European markets, may open domestic market on a soft note. SGX Nifty slipped by 0.25% and US Dow Future declined over 100 points or 0.3% (US market was shut yesterday) . Anxiety about Chinese growth and the lack of fresh stimulus from Beijing pulled down Asian markets. In the morning today, People Bank of China's cut one-year loan prime rate (LPR) and five-year LPR by 10bps each,  in line with expectation. European market declined 1% each as concern of UK short term bond yield spiked to 15-year high ahead of Bank of England (BoE) policy to be announce tomorrow. In the domestic front, expects range bound market today but stock specific action may continue. Yesterday, Index declined nearly half percent after inching closer to fresh record highs on account of profit-taking. However, undertone bullish sentiment in the market on account of strong domestic economy data, stable oil price and impressive direct tax collection will be positive for the market sentiment. US Housing data and along with two US Fed official statement will be in focus today. Expects positive for metal stocks after China cut loan prime rate. Defence stocks will be in focus as Prime Minister US visit commence from tomorrow on ahead of defence deal between US-India. 

 

·      US Market   – Wall Street was shut for a holiday on Monday

 

·      Global market summary –China's one-year loan prime rate (LPR) was cut from 3.65 per cent to 3.55 per cent, while the five-year LPR was also cut from 4.3 per cent to 4.2 per cent UK two-year yield climbs to 5% for first time since 2008, ECB Said to Signal Banks Face Harsher Stress Test Results.

 

·      Asian Market –Asia market open on a mixed bag as investors digested China's loan prime rate decision, after its central bank cut some of its key lending rates. China slashed its one-year and five-year loan prime rate by 10 basis points each. Shares fell in Japan and South Korea, while stocks in Australia and Hong Kong equities inched higher.

 

·      European Market - European stocks fell after their best week since April, as delays to a widely expected stimulus rollout in China stoked concern about a potential global recession. UK, Germany and France Index declined 1% each. The UK’s short-term government borrowing yield  surged to 5% for the first time since the global financial crisis amid concern the troubling inflation outlook could lead to more aggressive monetary tightening from policymakers. The European Central Bank has signaled to lenders benefiting from the surge in interest rates to prepare for adjustments in the name of achieving more credible results.

 

·      Oil –  Brent Crude marginally lower at $76/bbl on concern that stimulus to revive China’s flagging economic recovery may fall short of expectations.

 

·      Gold – Gold declined half percent to $1950/ounce as prospects for more tightening from major central banks and ebbing haven demand dimmed the outlook for the metal.

 

·      Previous Day market Update –Equity benchmark indices reversed their early opening gains and closed in the red after inching closer to fresh record highs on account of profit-taking. Private bank, metal and auto stocks witnessed profit booking. Weak global cues had negative impact on the market. Both Asia and European  markets took a breather after a strong rally last week as investors looked forward to China’s rate decision. The Fed chair's testimony, however, extended their rally to log record levels. Sensex declined 216 points or 0.34% to settle at 63,168 while touched intra-day high of 63575 (all time high of 63583). Nifty dropped 70 points or 0.40% to end at 18,755 while touched intra-day high of 18881 (all time high of 1888). Sector-wise, Nifty Private Bank, Auto Index, Nifty FMCG and Nifty Realty also closed over half percent lower. In the broader market, Nifty Midcap100 and Smallcap100 hit their new 52-week highs and managed to ended in the positive territory. Select PSU Bank Index gained nearly 1%. Kotak Bank, Axis Bank, Maruti, Bajaj Auto and Hindustan Unilever were major loser among the Nifty Index while HDFC Life, TCS, Bajaj Bajaj Finance, Bajaj Finserv and Tech Mahindra among the major gainers.  Both FIIs and DIIs were net sellers Rs1030cr and Rs365cr respectively.

 

·      Nifty Technical Levels – Nifty formed a Bearish Belt Hold sort of candle on daily frame and closed with losses of around 70 points. Supports are being respected and it has been making higher highs from the last five sessions but index is facing some pressure and profit booking at higher zones. Now it has to cross and hold above 18777 zones to witness an up move towards 18888 and 19000 zones while on the downside support exists at 18710 and 18676 zones.

 

·      Bank Nifty Technical Levels – Bank Nifty formed a Bearish candle on daily scale as selling pressure was seen at higher zones and it relatively underperformed the broader market. Now it has to cross above 43750 zones for a bounce toward 44044 then 44250 zones while a hold below the same could see some weakness towards 43500 then 43333 marks.

 

·      Actionable BUY – HAL, Nykaa, ICICI Prudential Life

 

·      Brokers Radar – JB Chemical TGT by Jefferies at 2650, M&M TGT by CLSA at 1700. Nomura TGT on ITC at 485, CLSA TGT on Bharti Airtel at 1030, Morgan Stanley TGT on Bharti Airtel TGT at 870. Citi TGT on Sun Pharma at 1175.

 

·      Events –Prime Minister visit in US.  Block deal on HDFC AMC and Timken India,

 

·      Corporate Action  - Ex-dividend - Heidelberg Cement Rs7, Maithan Alloy Rs6, Automotive Corporation Rs15, Craftsman Automation Rs11.25, Hindustan Unilever Rs22, Bank of India Rs2, Blue Star bonus 1:1, Ceat Ltd ex-dividend Rs12,

 

·      Global Data – Manufacturing Activities, Housing Starts, Building Permit (US), Producer Price Index (Germany). Retail Sales (France).

 

·      Market Summary – HDFC to sell 90% of education subsidiary for Rs 9,060 crore, Timken India Holder Seeks $231 Million in Share Sale, Abrdn to sell its entire 10.2% stake in HDFC AMC through block deal, SEBI Bars IIFL Securities From Taking New Clients For Two Years Grasimand Lubrizol to set up 1st phase of 1 lakh MTPA CPVC resin facility , HPCL Signs Pact to Supply Natural Gas to OPaL’s Petrochem Plant, Axiscade Technologies announce overseas Acquisition. Airbus strikes record deal to sell 500 planes to India’s IndiGo.

 

·      HDFC – Company has agreed to sell 90% of its stake in its education loan subsidiary, HDFC Credila, to Barings Private Equity and Chryscapital group for Rs 9,060 crore. The deal values the company at Rs 10066 crore.- positive

 

·      Tata Power – Company has planned to double its capital expenditure to Rs 12,000 crore in the current fiscal, with a focus on renewables, distribution, transmission and solar equipment manufacturing capacity. – positive

 

·      Timken India - Timken Singapore Pte Ltd offers 63lakh shares in Timken India in a vendor sale, according to terms of the deal obtained by Bloomberg News.  The floor price has been set at 3,000 rupees per share, a 14% discount to Monday’s close of Rs3,488.70 – Long term buying opportunity.

 

·      HDFC AMC - UK-based investment company Abrdn will sell 2.18 crore shares or its 10.2 percent holdings in HDFC AMC via block deals on Tuesday. The floor price for the sale has been fixed at Rs 1800-1892 per equity share, a 5 percent discount to the stock's closing price (CNV.- Any decline will be long term buying opportunity

 

·      Lupin Ltd – Company has received the Establishment Inspection Report (EIR) from the US FDA for its API manufacturing facility located in Visakhapatnam (Vizag). The EIR was issued post the last inspection of the facility conducted from March 6 to March 10, 2023. The inspection closed with the facility receiving an inspection classification of "No Action Indicated" (NAI).- positive

 

·      SEBI Bars IIFL Securities From Taking New Clients For Two Years - Market regulator SEBI has found that IIFL Securities misused and mixed client funds and has hence barred the brokerage from taking on new clients for two years.

 

·      Royal Orchid Hotels – Company appoints Philip Logan as Chief Operating Officer – positive

 

·      IndiGo – Company by placing a firm order for 500 Airbus A320 Family aircraft. This will provide IndiGo a further steady stream of deliveries between 2030 and 2035. This 500 aircraft order is not only IndiGo's largest order, but also the largest-ever single aircraft purchase by any airline with Airbus. – Long term positive

 

·      ITI Limited – Company has signed a Tripartite MoU with Centre for Development of Telematics (CDOT), and Telecommunications Consultants India Ltd  Limited (TCIL) recently as part of the larger efforts by the Government to synergize R&D efforts in the field of telecommunications aimed at establishing a frame work for cooperation between C-DOT, TCIL, and ITI in creation and delivery of innovative telecommunication products and related services for Smart Cities. – positive

 

·      Zydus Lifesciences – Company has received final approval from the USFDA for Minocycline Hydrochloride Extended-Release Tablets – positive

 

·      ITC – Company has entered into definitive agreements to acquire further 857 Compulsorily Convertible Preference Shares of ₹ 10/- each of Mother Sparsh for an amount of ₹ 11.54 crores (approx.).- positive

 

·      3i Infotech – Company has been awarded contract by one of leading Indian Private Sector Bank, for Managed Services Partner for Data center Domain. Total contract value is approximately Rs. 42.60 crore, spread across two years.- positive

 

·      Isgec Heavy Engineering – Company has enhanced the production capacity of its Ethanol Plant from 100 Kilo Liter Per Day to 160 Kilo Liter Per Day and the enhanced capacity has come into commercial production on June 18, 2023, after obtaining all statutory approvals – positive

 

·      Bharat Agri Fert & Realty – Company has received the Sanction of Development from Thane Municipal Corporation for the construction project "Shiv Sai Paradise, Phase 11, Majiwada, Thane – Positive

 

·      Taparia Tools Ltd fixes July 11, 2023 as record date for 4:1 bonus issue-  Positive

 

·      Vikas Ecotech Limited ompany has bagged fresh orders for Specialty Compounds valued at an Approx Rs9cr – positive

 

·      Maruti - commences pre-launch bookings for its latest premium 3-Row UV, INVICTO, in the NEXA channel. The INVICTO marks Maruti Suzuki's grand entrance into the premium 3-Row segment, expanding the already diverse NEXA product lineup – Positive

 

·      Som Distilleries – Company has commenced trial production with the enhanced capacity at the Odisha Plant. This marks an exciting milestone for the company as its expands product offerings and increases production capabilities. The commercial production is expected by early next month. – positive

 

·      Zee Entertainment – Tribunal to hear Zee appeal next on June 26 – expects volatile on the stock

 

·      Grasimand - Both the Company and Lubrizol now reaffirm that the construction of the first phase of the world's largest single-site state-of-the-art 1lakh mt   CPVC resin facility in Vilayat, Gujarat, will commence in later part of the year 2023. Earlier, projects was delayed due the unprecedented global COVID outbreak and its consequences, such as supply chain disruptions – positive

 

·      Zydus Life – Company gets USFDA approval for generic of Solodyn tablets – Positive

 

·      Laurus Labs – Company to in-license gene therapy assets, provide research grant to IIT Kanpur for advancing gene therapy products Additionally, the company will establish a GMP facility at the Techno Park of IIT Kanpur. – Long term positive

 

·      Lupin – Company has announced the launch of its Thiamine Hydrochloride injections in U.S.A. Company along with alliance partner Caplin Steriles had received the drug approval from the U.S. FDA – positive

 

·      Axiscade Technologies - Company announced to acquire 100% stake in Add Solution GmbH late on Friday, Jun. 19, 2023. Looking for a strategic foothold in the automobile space along with offshoring opportunities, the company had announced its acquisition of the German automotive solution provider for 5.5 million euros (Rs 49.27 crore). - positive

 

·      Axis Bank: Axis Bank appointed former RBI Deputy Governor NS Vishwanathan as non-executive part-time chairman with effect from Oct. 27. – positive

 

·      Trident: The company’s unit, Trident Home Textiles, incorporated a wholly-owned subsidiary, Trident Global B.V., in the Netherlands. Trident Global will carry out the wholesale business of textiles, paper, non-food consumer goods, and clothing accessories. – positive

 

·      HPCL– HPCL has won a contract to supply 13.53 trillion Btu of natural gas to ONGC Petro complex at Dahej unit. HPCL will supply the gas from October this year to May 2026. – long term positive

 

·      Asian Energy – Company wins orders from ONGC worth Rs78.24cr - positive

 

·      IRCTC – Company  said it will not face any competition from Adani Group's acquisition of Trainman.Trainman is one of the 32 business-to-consumer partners of IRCTC, contributing 0.13% of the total reserved ticketing volumes – Positive

 

·      Rites - Zimbabwe’s rail utility and an Indian firm have signed an $81mn deal under which the latter will supply 315 wagons and nine locomotives to the African country. The National Railways of Zimbabwe (NRZ) and the Rail India Technical and Economic Service (RITES) inked the agreement for deal. – Positive

 

·      Adani Transmission - Company may achieve financial closure of Rs 1,700 crore for its Mumbai power project by July-end. A consortium of nine multinational institutions is providing the funding through an international construction facility. The funds will be used to build a 400 kV substation and transmission lines in Maharashtra.

 

 

News and Impact

News and Impact

 

 

·      Expects market to open on a flat note but intra-day may cross record high level today back of  strong micro data along with persistent FIIs buying interest and rally in the global markets. The tech-heavy Nasdaq 100 ended the week 4% higher, logged its longest weekly winning streak since March 2019. Previous day, both Sensex and Nifty close on a record high and just 20 points from the lifetime high and expectation of new all time high level today. Sentiments remain robust due to CPI data falling to 25-month low, strong direct tax of above 11% to in April-June, nearly 8-year low WPI data, USDINR fall to 1-month low to below 82 and hope of good monsoon will boost the market sentiment. Foreign institutions net bought Rs 16,406 crore worth of equities in June. They have been net buyers of Rs 45,665 crore worth of Indian equities so far in 2023. US market on Friday marginally decline due to profit booking and Asian markets open on a mixed bag. SGX Nifty is flat to negative. Expects range bound market today on account of US market will be shut today. Expects stocks specific action in the market and any decline will be good buying opportunity. Expects, rally to continue on defense stocks on ahead of the Indian PM visit in US for defense collaboration this week. Metal stocks may be positive on hope of China to stimulus announcement. FMCG stocks may be positive on hope of good monsoon to improve rural demand and the government cut base import taxes on refined soybean and sunflower oils. Moreover, rally may continue on realestate, mid and small cap stocks. Watch on HDFC Bank – its ADR gained by 2.5% on Friday

 

·      US Market   – U.S. stocks ended lower on Friday on account of profit booking as investors weighed the path of monetary policy tightening by the Federal Reserve and the sustainability of the recent bull market. Nasdaq Composite slipped 0.5% while Dow Jones declined marginally by 0.3%. However, Nasdaq logged its longest weekly winning streak since March 2019. Wall Street appeared to cheer signs that the Fed's tightening cycle has helped to ease price pressures, while two Fed officials warned that the central bank may have to raise rates further to tame inflation.

 

·      Global market summary –US Dollar Index fell to 2-month low at 102. The Nasdaq logged its longest weekly winning streak since March 2019.

 

·      Asian Market –Asian equities are witnessing mixed bag. US equity futures reversed earlier gains and the offshore yuan weakened as investors parsed news on signs of improving ties between Washington and Beijing and hopes for further stimulus in China to boost its flagging recovery.

 

·      European Market - European shares rose on Friday, posting their biggest weekly advance since April, buoyed by gains in the luxury goods and utilities sectors. France Index gained over 1% while Germany Index advance 0.50%

 

·      Oil –  Brent Crude advance 2% to above $76/bbl. The oil rig count in the US decreased by 4 this week, according to the latest data released by oilfield services company Baker Hughes on Friday.

 

·      Gold –Gold slipped marginally to $1956/ounce after hawkish signals from the Federal Reserve and the European Central Bank.

 

·      Previous Day market Update-  Equity benchmark Sensex and Nifty ended at an all-time high on a closing basis on account of relentless buying interest across the sectors and a rally in the global markets along with strong domestic data and FIIs inflow. Both Sensex and Nifty are just a few points away from a record high today. Nifty touched an intra-day high of 18865 while the all-time high was 18887. On the domestic front, May CPI data fell to 25-month low and multi years low WPI data which have a positive sentiment in the market. Moreover, FIIs were net buyers of over Rs5000cr this week, USDINR fell to a 1-month low to below 82, and the hope of a good monsoon and stable oil prices have positive sentiment in the market. Sensex surged 467 points or 0.7% to close at 63385 while touching a high of 63520 (all-time 63583). Nifty advance 138 points or 0.7% to close at Rs18826 while touching an intra-day high of 18865. Banking, defense, FMCG, cement, and insurance stocks were major gainers today. Both Mid-cap and Small-cap Index gained 1% each. Both FIIs and DIIs were net buyers Rs795cr while DIIs Rs681cr respectively.

 

·      Nifty Technical Levels – Nifty formed a Bullish candle on daily scale and has been making higher highs from the last four sessions. It formed a Bullish candle on weekly frame and has been making higher highs from the last twelve weeks. Now it has to hold above 18777 zones to witness an up move towards 18888 and 19000 zones while on the downside support exists at 18710 and 18676 zones

 

·      Bank Nifty Technical Levels – formed a Bullish candle on daily scale as buying was seen in heavyweights and ended with decent gains of 500 points. On weekly scale it formed a small bodied candle with long shadow as buying is visible at lower zones but negated the formation of highs lows after thirteen weeks. Now it has to hold above 43750 zones for a bounce towards 44144 then 44250 levels while on the downside support is seen at 43750 then 43500 zones.

 

·      Actionable BUY – Titan, HAL, Rites, IRCTC, HDFC Bank, Tata Steel

 

·      Brokers Radar – HSBC TGT on Mahindra Finance at 360, Manappuram Finance TGT by Morgan Stanley at 160, Britannia TGT by Nomura at 5425. Infosys – Citi TGT at 1395 AND Macquarie TGT at 1310. HCL Tech Macquarie TGT 1520. Wipro TGT by Citi at 335. Wipro TGT by Macquarie at 440.

 

·      Events – SBI AGM, Can Fin Home board meeting for fund raising, Mahindra CIE will change it new name, SAT verdict on Zee Entertainment, Global Surfactant end of promoters lock in period.  Sovergren Gold issue open today at Rs5926 per gram.

 

·      Corporate Action  - Ex-dividend - LG Balkrishnan Rs16, Ashirbad Capita Bonus 1:2, Vintage Coffee Right issue

 

·      Global Data – NAHB Housing Market Index (US), Housing Price Index (UK)

 

·      Market Summary – State Bank of India, HDFC to gain from Nifty Bank index readjustment, Tata Steel sets FY24 capex at Rs 16,000 crore, Rites wins overseas order , Kotak Mahindra Plans to Raise Rs7k Via Bond Sale in 2023-24, USFDA completes inspection at Dr Reddy's Lab and oratories Ltd's Bollaram API unit and Zero observation, ABB wins order from Kanpur Metro

 

·      IRCTC – Company has announced that around 14.5 lakh reserved tickets are booked on daily basis in Indian Railways, out of which 81% are e-tickets, booked through IRCTC.

 

·      Tata Steel -  Company is planning a consolidated capital expenditure (capex) of Rs 16,000 crore for its domestic and global operations during the current financial year, according to its top management.

 

·      Kotak Mahindra – Company’s board approved raising as much as 70 billion rupees ($854 million) selling bonds in one or more tranches during the financial year to March 2024 - positive

 

·      Paras Defence – Company secured a contract worth about Rs53cr from the Indian defense ministry for the supply of optical periscopes.- positive

·      PVR – Company collected Rs240cr in the last two days on new movie Adipurush. – positive

 

·      HDFC – Company has sought RBI permission to classify its outstanding bonds with a tenure of more than seven years as infrastructure bonds. The mortgage financier is awaiting RBI's decision on this even as it is preparing to complete the merger process by the end of this month, a person aware of the matter said. – We are positive on the stock.

 

·      MosChip Technologies - A semiconductor and system design services and IP company, announced today that Dr. Naveed Ahmed Sherwani has been appointed as Non-Executive Director of the Company.- Positive

 

·      State Bank of India, HDFC to gain from Nifty Bank index readjustment – (media report)—SBI and HDFC will see maximum inflows from passive trackers on account of the quarterly rebalancing exercise of the Nifty Bank Index. IndusInd Bank and AU Small Finance Bank could see maximum outflows. The rejig of the Nifty CPSE Index will result in inflows in ONGC, NTPC, and Coal India and maximum outflows in Bharat Electronics, according to Brian Freitas, a New Zealand-based analyst with Periscope Analytics

 

·      Skipper Limited - One of the world's leading manufacturers for Power Transmission & Distribution manufacturer of Telecom and Railway structures wins fresh orders worth Rs.1135 Crores from Domestic & International Market – positive

 

·      ABB - The Kanpur Metro has deployed ABB India's Electrification solutions for safe, reliable and quality power distribution. ABB India has been contributing to Indian Metro systems by proving electrification solutions to 13 metro rail projects across India. – positive

 

·      Dr Reddy - The USFDA completed a GMP inspection at Dr. Reddy's Lab's API manufacturing facility in Bollaram, Hyderabad (CTO-3). The inspection was conducted from June 12, 2023 to June 16, 2023. The inspection closed with zero observations.- positive

 

·      Adani Enterprises - The Adani Group owned Mumbai International Airport has registered a 23% increase in the total passenger in May.  The Chhatrapati Shivaji Maharaj International Airport saw a footfall of 43.44 lakh passengers in May. With that, the passengers hadled by one of the busiest airports in the country has risen higher than pre-Covid levels.

 

·      Nexus Select Trust - Company has successfully raised Rs. 1,000 crores of coupon-bearing Non-Convertible Debentures ("NCDs") – positive

 

·      Gufic Biosciences – Company received approval from National Medical Products Administration (NMPA), China for our product PRILOCAINE (API) which is an amide-type local anaesthetic of fast onset and intermediate duration of action. This approval shall help commercialization of the said product in China and explore Chinese market. – positive

 

·      Ram Ratna Wires- Company announced the setting up of new manufacturing facility for expansion its plant at Salarpur, Bhiwadi, Distt - Alwar, Rajasthan – positive

 

·      Wipro – Company announced the launch of the Wipro Industry Innovation Experience for Energy and Utilities, featuring a new suite of integrated digital solutions built on Microsoft Cloud.- positive

 

·      Ashok Leyland, Aidrivers develop India’s first autonomous electric terminal - Ashok Leyland and Aidrivers, the global specialist in AI- enabled autonomous solutions are partnering to produce autonomous electric terminal trucks to address the net zero emissions needs of the port industry.- positive

 

·      Kalpataru Projects - Company has acquired the rights to redevelop a housing society in the Borivali suburb of Mumbai, and is planning to develop an over seven lakh sq. ft. residential project with an investment of around Rs 700 crore.- positive.

 

·      NLC India – Company announced the  incorporation of a subsidiary company to undertake its existing  renewable energy projects. NLC India Renewables (NIRL) was incorporated as a wholly-owned subsidiary - positive

 

·      Adani Green – Rating agency Fitch Affirms Adani Green Energy Restricted Group 2's Notes at 'BBB-'; Outlook Stable

 

·      TCS – Company and U.S. insurer Transamerica have agreed to terminate the 10-year, $2-billion outsourcing deal after five-and-a-half years. Transamerica plans to cut its dependence on third-party IT services firms such as TCS, electing to do much of the tech work itself, according to an executive familiar with the development. – Not yet major impact ,

 

·      Adani Power - Adani Electricity Mumbai has received over 3,000 applications from the customers of rival Tata Power for migration in the last two months after state regulator's multi-year tariff order brought down rates for the Adani Group company. There has been migration requests for close to 350 million units of power from around 3,000 applicants across the commercial, industrial as well as well as residential household customers of Tata Power in Mumbai –  We are long term positive on Tata Power while marginally positive on Adani Power

 

·      PDS Ltd – PDS Lifestyle has proposed to buy 100% stake in U.K.-based clothing brand New Lobster for Rs 150.51 crore - Positive

 

·      DMR Hydroengineering - Company has received a Letter of Acceptance for Consultancy Services for design and construction of Treated Water Tunnel and allied works in Dist. Raigad, subject to the approval of CIDCO with order value Rs125cr – positive

 

·      Natco Pharma- Company has announced final approval for its ANDA for Tipiracil Hydrochloride and Trifluridine Tablets from the USFDA. Natco believes it is one of the First-to-File for the product and may be eligible for a 180-day exclusivity at the time of launch. Lonsurf® is indicated primarily for the treatment of colorectal cancer. As per IQVIA data, Lonsurf® had generated annual sales of $211 million in USA during the twelve months ending December 2022. – positive

 

·      Rites – Company has signed a Rs 665 crore contract with National Railways of Zimbabwe for supply of 3000 diesel electric locomotives and high sided open wagons. – positive

 

·      DroneAcharya Aerial Innovations – Company has entered into a Memorandum of Understanding (MoU) with King Mongkut's Institute of Technology Ladkrabang (KMITL) which is one of the top universities based out of Bangkok, Thailand. – positive

 

·      Indsil Hydro Power – Company has entered into a transaction with a buyer for sale of the 12 MW power plant of the Company situated at Raipur, Chhattisgarh for an aggregate consideration of Rs. 11.40 Crores – Positive

 

·      Naapbooks Ltd – Company has entered into MOU with the MSME Promotion Council, New Delhi to Provide digitization and digitalization services to MSMEs and to make MSMEs digitally empowered and motivate them to adopt digital tools, applications and technologies in their production & business processes. – Positive

 

·      Amines and Plasticizers – Company has received all the required statutory clearances and the Plant at Turbhe, Navi Mumbai will be fully operational effective today. – positive

 

 

News and Impact

News and Impact

 

 

·      Expects market to open on a positive note on account of favorable global markets. US market closed to 14-month high, strong FIIs buying interest and impressive domestic economy data may have  positive impact in the market. A six-day advance for the US S&P 500 sent the gauge above 4,400 amid speculation the Federal Reserve will have to end its tightening cycle sooner rather. Dow Jones and Nasdaq composite climbed up over 1% after the US Retail sales data announced better than expectation on Month of Month basis but poor jobless data indicating to pause in interest rate hike. As a result, US bond yield declined and Dollar Index fell to 2-month low to below 103 level as investors digested US Fed rate hike and hawkish commentary including the ECB lifting interest rates by a quarter of a percentage point , as was expected. Asian markets witnessed mixed bag while Japan Index declined ahead of Bank of Japan interest rate decision to be announce today. However, China index gained on hope of China government to announce stimulus. SGX Nifty is up quarter percent while yesterday declined nearly half percent on account of profit booking. US Future marginally decline due to quarterly expiry and rebalancing today while market will be shut on holiday.  Expects positive for metal stocks on account of increased base metal price on LME and China stimulus to improve global demand. Pharma stocks may rally continue due to US FDA approval and clean chit by USFDA approval Indian pharma companies. IKIO listing and FTSE rebalancing will be in focus today.

 

·      US Market   – US Market witnessed smart rally yesterday. Dow Jones surged over 1% to close 6-month high while the S&P 500 and Nasdaq advance 1% to close at their highest in 14 months, as investors cheered economic data that fueled bets that the Federal Reserve is nearing the end of its rate hike campaign. US Retail sales data announced better than expectation on Month of Month basis but poor jobless data indicating may pause in rate hike.

 

·      Global market summary – U.S. stocks hit fresh 14-month highs, US Dollar Index fell to 2-month low to below 103. Both US 10-Year and 2-year Yield marginally. ECB Raises Main Refinancing Rate By 25BPS to 4.00%; Estimates. 4.00% - The ECB lifted rates Thursday by another quarter-point, with President Christine Lagarde describing a further hike in July as “very likely.”

 

·      Asian Market –Asian equities are witnessing mixed bag on expectation of more stimulus from China and overnight rally in the US market. Taiwan, Hong Kong Index, South Korea Index gained nearly half percent each. Japan Index slipped 0.5% ahead of Japan central bank policy decision to be release today.

 

·      European Market - European stocks closed with losses on Thursday, except for the UK exchange, after the European Central Bank's (ECB) rate hike decision. Germany Index slipped over half percent while UK Index managed to ended positive territory. The eurozone's benchmark rate is at its highest since May 2001 after the European Central Bank delivered a widely expected 25-basis-point rate hike, dampening sentiment in the region's stock markets.

 

·      Oil –  Brent Crude advance 2% to above $75/bbl as a weaker dollar and expectations for more stimulus in China outweighed concerns over higher interest rates in the US and Europe.

 

·      Gold –.Gold rebounded after comments from the European Central Bank president that another interest-rate hike is likely in July. The dollar and Treasury yields pushed lower in response, helping lift bullion. Gold gained 1% to $1956/ounce.

 

·      Previous Day market Update-  Equity benchmark index snapped it's 3-day winning streak and closed in red after the US Fed left rates unchanged as anticipated, but hinted at the possibility of more hikes later this year. Global markets also declined today as investors turned cautious on Fed signal that two rate hikes were possible by the end of the year. Interest sensitive sectors like banks, auto and realty stocks were major losers today while defensive sectors like healthcare and FMCG stocks recorded smart gain. Major European markets were down ahead of the European Central Bank (ECB) policy outcome. ECB may hike rates for the eighth straight time. Sensex opened 75 points lower at 63,154 and fell 311 points, or 0.50% to close at 62,918. Nifty closed the day with a loss of 68 points, or 0.40 per cent, at 18,688. However, bank nifty was biggest loser today led by heavyweights private banks like HDFC Bank, ICICI, Axis Bank, Kotak Bank. Bank Nifty nosedived over 1% today. FIIs were net buyers Rs3086cr while DIIs were net sellers Rs298cr .

 

·      Nifty Technical Levels – Nifty formed a Bearish candle on daily scale but has been making higher highs from the last three sessions. Now it has to hold above 18676 zones to witness an up move towards 18777 and 18888 zones while on the downside support exists at 18636 and 18550 zones.

 

·      Bank Nifty Technical Levels – Bank Nifty formed a Big Bearish candle on daily scale as sustained selling pressure was seen throughout the day as private Banks remained under pressure. Now till it holds below 43750 zones weakness could be seen towards 43250 then 43000 levels while on the upside hurdle is placed at 43750 then 44000 levels.

·      Actionable BUY – Brigade, BHEL, BSE Ltd, Global Health, Tata Steel and Mazagoan Dock

 

·      Brokers Radar – ITC TGT by Nomura at 485, Nomura TGT on Ceat Ltd at 1765, Ashok Leland TGT by Nomura at 187.

 

·      Events – FTSE Rebalancing today, IKIO IPO listing today while it has been subscribed by 68 times, Rating agency Moody’s to meet with Government officials.  

 

·      Corporate Action  - ex-dividend PFC Rs4.50, Angel One Rs4, Piramal Enterprises Rs16, Torrent Power Rs4, Welspun Corp Rs5, Wipro share buy-back

 

·      Global Data – Fed Service Business Activities (US), Bank of Japan interest rate decision

 

·      Market Summary – Reliance in talks for $2bn loan to fuel expansion,  SAT gives no immediate relief to Zee promoters, refuses to stay Sebi order, Godrej Properties to buy 7.44-acre land parcel in Kolkata, Cochin Shipyard wins order, PNB, LIC, SBI and BoB looking to seek formal bids for stake sale in UTI AMC, Govt cuts import duties on Refined Soybean and Sunflower. Bharat Heavy Electricals, Titagarh Rail Consortium to Supply 80 Vande Bharat Express slipper train. Foxconn Seeks to Set Up Electric Vehicle Factory in India: ET

 

·      Ramkrishna Forgings and Titagarh Rail Systems – Both companies awarded the contract to manufacture and supply 15,40,000 forged wheels over a span of 20 years, under the AatmaNirbhar Bharat Initiative by Ministry of Railways, Government of India with the total contract valued at  Rs12,226.5 crores – positive.

 

·      FTSE, Sensex rebalancing to take place on Friday - Here are the changes expected – Some stocks that need to be kept on the radar due to the changes include Medanta or Global Health. The stock will be included in the FTSE All Cap Index and is likely to see inflows of $8.1 million. Piramal Pharma is the other inclusion in the FTSE All Cap Index, and can see inflows of $11.1 million. – media report

 

·      Tata Consumers – Company announced its entry into the Ready to Drink Cold Coffee category with the launch of Tata Coffee Gold- Cold Brew.- positive.

 

·      Axis Bank - Private investment firm Bain Capital has sold partial stake in private lender Axis Bank via block deal on Thursday, while many domestic and foreign funds lapped up the shares.- we are positive on the stock.

 

·      Samvardhana Motherson - Samvardhana Motherson Automotive Systems, a subsidiary of Samvardhana Motherson International, through one of its European subsidiaries, has signed

·      a binding undertaking to acquire a 100% stake in Cirma Enterprise. – positive

 

·      Tech Mahindra - Tech Mahindra has appointed Mohit Joshi as the MD and CEO of the company with effect from 20 December 2023. The current CEO CP Gurnani is set to retire on December 19, 2023. - positive

 

·      Reliance Industries - Company is in talks with lenders for a foreign-currency loan of up to $2 billion to fuel the ongoing expansion of its oil-to-telecoms business.

 

·      Natco Pharma- Company has announced the successful closure of inspection and received Establishment Inspection Report (EIR) from the USFDA for its drug formulations manufacturing facility at Visakhapatnam (Vizag), Andhra Pradesh - positive

 

·      BHEL – Company and Volvo Eicher Commercial Vehicles Limited (VECVL) signed an MoU for taking up a "Joint project for development & deployment of Type - IV Cylinders (Hydrogen / CNG) in Commercial Vehicle Segment". – positive

 

·      Welspun Corp – Company has received the BIS license for 1200DN K7, K8 and K9. With this, the company have covered the full range of 80-1200DN for ISI marking. - positive

 

·      Zee Entrainment - The Securities Appellate Tribunal on Thursday declined to grant immediate relief to Essel group chairman Subhash Chandra and his son Punit Goenka against directions passed by the Securities and Exchange Board of India (Sebi) in an alleged fund diversion case – Expects volatile n the stock but long term positive.

 

·      Focus on Auto ancillary stocks - Foxconn is looking to start electric vehicle manufacturing in India, Economic Times reports. Foxconn in talks with some India’s local authorities about the

·      project – expects positive for Amara Raja Batteries, JBM Auto,

 

·      Godrej Properties – Company has emerged as the highest bidder to acquire 7.44-acre land parcel in Kolkata for development of a  luxury housing project, which has an estimated sales revenue potential of around Rs1,200cr – positive

 

·      Titagarh and BHEL – A consortium led by BHEL and Titagarh Rail bagged a contract worth Rs24000cr from Indian Railways for the manufacturing and supply of 80 fully assembled sleeper train sets for Vande Bharat Express by 2029 and their maintenance for 35 years - Positive

 

·      KIOCL Ltd – Company has announced that the operations of Pellet Plant Unit of the Company at Mangalore have been restarted today i.e., with effect from June 15, 2023.- positive

 

·      Panacea Biotec – Company announced the launch of its new range of high-quality pediatric food & nutritional products ChilRun, ChilRun Full, ChilRun No Sucrose, ChilRun 7+ in different flavours and sizes in India – positive

 

·      Cochin Shipyard – Company has won a Rs 580 crore order from Norway's Wilson Shipowning AS. Company to design and construct six 3800 DWT general cargo vessels, to be delivered from 2024 to 2026. Contract includes an option for 8 more vessels. - positive

 

·      FDC - US FDA Inspection at Company's manufacturing facility located at Roha, Raigad  and Receipt of Establishment Inspection Report (EIR) with No Action Indicated - positive

 

·      G R Infraprojects – Company has emerged as L‐1 bidder in Financial Bid Opening dated 15th June 2023 for the tender "Four laning of NH 530B from Kasganj Bypass End to Chandan in the State of Uttar Pradesh on HAM model, project worth Rs1085.5cr - positive.

 

·      Som Distillates - Market Share in Karnataka Witnesses Phenomenal Growth, Reaching a Historic 20.1% in May 2023. Karnataka, renowned for its dynamic market and discerning consumer base, presents a highly competitive landscape for beverage companies. – positive

 

·      KPI Green - Company have received Commissioning Certificates from Gujarat Energy Development Agency ('GEDA') for capacity of 3.40 MWdc solar power project – positive

 

·      Bliss GVS Pharma – Company had earlier announced that the US FDA conducted a Pre-Approval Inspection  and Good Manufacturing Practice (GMP) at the Company's manufacturing unit at Palghar. Pursuant to above inspection by the US FDA has now received the Establishment Inspection Report (EIR) indicating closure of the inspection through which the US FDA agency assigned the inspection classification of the facility as "Voluntary Action Indicated (VAI)". – Long term positive

 

·      PNB, LIC, SBI and BoB looking to seek formal bids for stake sale in UTI AMC - PNB, LIC, SBI, and Bank of Baroda, all owned by the Centre, are working on inviting bids for selling their stake in the UTI AMC – ET Report – we are positive on SBI, BoB and LIC

 

·      Wipro – Company opens new 5G DEF-1 innovation center in Austin Texas – Positive

 

·      Persistent Systems – Company opens new hub in Texas to expand presences in US - Positive

 

·      Dilip Buildcon - Company announced the completion of the NH5 section project. The project included rehabilitation and a six-lane highway upgradation of the Chandikhole-Bhadrak Section in Odisha worth Rs 522-crore project which carried out under a hybrid-annuity mode under the National Highways Development Project – positive

 

·      PTC India: PTC India named Mahendra Lodha as director (finance) and the chief financial officer of the company – positive

 

·      IndiaMART : The company approved the reappointment of Dhruv Prakash as director liable to retire by rotation. – positive

 

·      DCW: The company will produce lower soda ash by an estimated 6 KMT in the first quarter of fiscal 2023-2024 due to an unforeseen mechanical breakdown of the carbon dioxide gas compressor in its soda ash plant. – Any sharp decline will be buying opportunity

 

·      GAIL India – Sanjay Kumar assumes charge director of marketing - positive

 

·      HCL Tech -  Company and Microsoft expand collaboration to boost innovation and adoption of generative AI with Microsoft's Azure OpenAI Service – Positive

 

·      TVS Motor – Company sells entire stake in Emerald Haven Realty and the company plans to raise the prices of the iQube electric scooter in response to the revision of the Fame II subsidy. The revised prices will vary between Rs17,000 and Rs22,000, depending on the specific variant of the scooter. – positive

 

·      Laurus Lab – company got USFDA Establishment inspection report (EIR) its Visakhapatnam plant which was eairler inspected by the USFDA – Positive after got USFDA no objection  

 

·      Government cuts import duties on Refined Soybean and Sunflower Oils - The government reduced base import taxes on refined soybean and sunflower oils to 12.5%, from 17.5% - Expects positive for Marico, Patanjali Food and Godrej Agrovet

 

·      Trade Deficit Widens To $22.1 Billion In May - Trade deficit widened in May as exports fell at a faster rate than imports. The merchandise trade deficit widened to $22.1 billion in May, compared to $15.2 billion in April. Merchandise exports fell by 10.2% year-on-year to $35 billion in May 2023.Merchandise imports fell by 9.7% year-on-year to $57.1 billion in May– inline with expectation

 

·      MIC Electronics – Company receives LoA for order worth Rs. 5.13 crore from Southern Railway Zone for providing of Passenger Information System in connection with Amrit Bharat Scheme in Chinna Salem – positive

 

·      Pitti Engineering  - Company  announced a transaction that merges the supply chain, margins and revenue of group company Pitti Castings Private Limited (PCPL) which is engaged in the manufacturing of High-Quality Casting in Grey Iron, Ductile Iron, Low Carbon and Alloy Steel Grades – positive

 

 

News and Impact

News and Impact

 

 

·      Expects market to open on a positive note after the US May Inflation fell to lowest level since March 2021 at 4.1%, US core inflation decline to15-month low, domestic inflation nosedived to 25-month low and China’s central bank surprised with cut in reverse repurchase rate by 10 basis along with to consider stimulus, above these factors will boost the market sentiment. Expectation of US Federal Reserve policymakers are poised to pause their hiking of interest rates for the first time in 15 months after cooling US Inflation print. However, US Fed commentary will be important for the global market sentiment. US Dollar Index fell to 1-month low to below 103 while US 10-Year and 2-year Bond spiked to 2-month high ahead of policy outcome today. US Vix (Volatility Index) decline by 3% to below 15, indicating a positive sentiment in the US market. Overnight, US market gained up to 1% to close 14-month as market well come cooling down US Inflation. Japan market is up 1% to decade high.  SGX Nifty is up quarter percent or 45 points. FIIs turned into strong net buyers over Rs1500cr yesterday and hope of good monsoon will be positive for the market sentiment. Expect rally to continue and Index just half percent away from the record high. Technically, Nifty and Bank Nifty formed a Bullish candle on daily scale and bulls established a strong closing. Yesterday, Sensex climbed over 400 points to close 7-month high led by realty, banking, capital goods and metal stock. Expects positive for realty stocks due to strong demand and stable interest rate. Metal momentum may continue after China rate cut and to consider stimulus and US Metal Index gained 4%. IT stocks may be positive on account of attractive valuation and global IT major Index Nasdaq Composite surged to 14-month high.

 

·      US Market   – US stocks reached their highest closes in 14 months after data showed that consumer prices rose modestly in May at 24-month low at 4% , boosting bets that the Federal Reserve will not raise interest rates at the end of its two-day policy meeting this week. Dow Jones gained nearly half percent and Nasdaq Composite advance nearly 1%. US May CPI reported at 4% while expectation was 4.1%, previous month was 4.93%. Core services inflation excluding housing, receded to the slowest pace in 15 months at 5.3% while previous month was 5.50%

 

·      Global market summary – US Dollar Index fell to 1-month low to below 103, US 10-Year and 2-year Bond spiked to 2-month high at 3.8% and 4.65% yesterday ahead of policy outcome today. US Vix (Volatility Index) decline 3% to below 15. Japan Market surged to 3 decade high. China’s central bank surprised with cut in reverse repurchase rate by 10 basis points to 1.9. It was the first reduction in the rate since August 2022.

 

·      Asian Market –An index of Asian equities rose for a fourth day amid bets for supportive monetary policy from central banks in China and Japan and a pause in interest rate hikes from the Federal Reserve. Japan’s Topix rallied almost 1% early opening as it extended its three-decade high. Australia and South Korea Index modest gain.

 

·      European Market - European stocks advanced the most in more than a week after data showed that US consumer price inflation slowed in May, bolstering market expectations for the Federal Reserve to pause its aggressive rate-hiking campaign this week. UK, Germany and France Index gained over half percent each.

 

·      Oil –  Brent Crude surged 3% to $74/bbl on account of tight supply by Saudi Arabia’s latest oil production cuts and OPEC) on Tuesday further raised its forecast for the growth in China's oil demand in 2023 due to "better-than-expected performance in China's economy,".

 

·      Gold – Gold prices moved lower BY 1% to $1947/ounce on Tuesday, shaking off early gains after data showed a modest monthly increase in U.S. consumer prices and bond yields pushed higher as traders awaited Wednesday's Federal Reserve's policy announcement.

 

·      Previous Day market Update-  Sensex climbed over 400 points to close 7-month high and is just half percent lower than the record high led by realty, banking, capital goods and metal stocks. There was rally for the second straight session on improved sentiment after data showed domestic retail inflation cooled off to a 25 month low in May, while investors await US inflation data and Federal Reserve's rate decision. Moreover, fall in oil price and hope of good monsoon also boosted sentiments. Global markets joined hands with domestic market after China’s central bank surprised with cut in reverse repurchase rate by 10 basis points to 1.9. It was the first reduction in the rate since August 2022. Moreover, China government is considering a broad package of stimulus measures to boost the economy, including property support.  Both Asian and European market gained half to one percent today. Sensex jumps 418 points 0.7% to settle at 63,143. Nifty climbs 115 points or 0.6% to close at 18,716, just 100 points lower than the record closing of 18812. FIIs were net buyers Rs1678cr while DIIs were net sellers Rs203cr .

 

·      Nifty Technical Levels - Nifty formed a Bullish candle on daily scale and bulls established a strong closing after days of lackluster move. Now it has to hold above 18676 zones to witness an up move towards 18777 and 18888 zones while on the downside support exists at 18636 and 18550 zones.

·      Bank Nifty Technical Levels – Bank Nifty formed a Bullish candle on daily scale and negated the formation of lower highs after three trading sessions. Overall buying is visible at lower zones and index is holding above its crucial support of 20 DEMA. Now it has to hold above 44044 zones for an up move towards 44250 then 44500 zones while on the downside support is seen at 43900 then 43750 levels.

 

·      Actionable BUY – IDFC First Bank, Sobha, Tata Steel, NHPC, PVR, Axis Bank, Hindalco

 

·      Brokers Radar – JP Morgan on IT sectors – LTIMindtree TGT at 3850, TECH Mahindra TGT at 950, Tech Mahindra TGT at 2900 and Tata Elxsi TGT at 4600.

·      Events – WPI Data, Cabinet meeting at 10.30am

 

·      Corporate Action  - Tata Chemical ex-dividend Rs12.30, Diamines Rs3, Jindal Saw Rs3, Canara Bank Rs12, TCS Rs15,

 

·      Global Data – PPI (Producer Price Index), Mortgage Applifcation, FOMC Interest rate decision. (US). Monhly GDP, Manufaturing Production, Construction Output and IIP (UK).

 

·      Market Summary – Anupam Rasayan wins large overseas order, Vi revival plan led by Rs 14,000 crore equity infusion, Sajjan Jindal Seeks as Much as 48% Stake in MG Motor India: ET, Keytrade Bank selects Infosys Finacle suite for core banking transformation, Zee board to review Sebi order on Subhash Chandra and CEO Punit Goenka, Oracle Pushes to Record High as AI-Frenzy Spurs Cloud Demand, Patanjali Foods aims Rs 5K cr profit at EBIDTA level.

 

·      Nazara Tech - Societe General has bought about 4 lakh shares in Nazara Technologies through bulk deals on Tuesday – positive

 

·      Tata Chemicals – Media report that the company cut soda ash price by Rs2300 a ton. Company followed Nirma with downward revision of Soda Ash prices. News – Price cut by Nirma amy short term negative but buying opportunity at lower levels.

 

·      JSW Steel and JSW Energy -  A private company owned by Sajjan Jindal is seeking the stake, the Economic Times reported. Jindal is likely to own 45-48% of MG Motor India, with dealers

·      and Indian employees owning 5-8% - long term positive.

 

·      Vodafone Idea  - Company proposes to infuse a total equity of ₹14,000 crore in the near term as part of its business revival plan, said people with knowledge of ongoing discussions. This will see existing promoters Aditya Birla Group (ABG) and UK's Vodafone Group Plc infuse half the overall amount, they said. – news is positive but poor balance sheet is a concern.

 

·      Anupam Rasayan - Anupam Rasayan has signed a letter of intent (LoI) worth $265 million (Rs2,186 crore) for next 5 years with one of the leading Japanese speciality chemical companies to supply new age patented life science active ingredient. - positive

 

·      LTI Mindtree - LTIMindtree announced that it has joined the Microsoft Intelligent Security Association (MISA).- positive

 

·      ZEE Entertainment - Plutus Wealth Management has about 75 lakh shares in ZEE Entertainment through open market transactions on Tuesday. – expects volatile on the stock

 

·      IndiGo - IndiGo has clarified that the company has not received any information with respect to co-founder's intention to sell stake.- positive

 

·      Balkrishna Industries: The company said it will suspend operations at the Bhuj plant from the late evening of June 13, 2023, due to Cyclone Biparjoy. It will halt operations for three to four days. – Any decline will be buying oppotunity

 

·      Kotak Mahindra Bank: Lender to meet on June 16 to consider raising funds by issuing non-convertible debentures or bonds in one or more tranches on a private placement basis during fiscal 2023–2024.- positive

 

·      NHPC - State-run hydropower company NHPC Ltd. will start trial runs in July for the Subansiri Lower project that runs through the states of Assam and Arunchal Pradesh in the country’s north-east.- Positive

 

·      PVR – Focus on PVR-Inox after the news that there was good response new movie – Adipurush. Media report that the Adipurush tickets sold at Delhi for Rs2000

 

·      Infosys – Infosys Finacle, a wholly-owned subsidiary of Infosys, and Belgium’s Keytrade Bank on Tuesday announced the bank’s decision to select Infosys Finacle as the preferred partner for the modernisation of its core banking system – Positive

 

·      Zee board to review Sebi order on Subhash Chandra and CEO Punit Goenka -  A day after market regulator Sebi barred Zee promoters Subhash Chandra and CEO Punit Goenka from holding key positions, Zee Entertainment Chairman R Gopalan said the board was reviewing the order. "The Board is currently in the process of reviewing the detailed order, and appropriate legal advice is being sought in order to take the next steps as required – long term positive

 

·      Auto Wholesale Data In May (YoY) -  Total auto sales rise 18% YoY to 18,08,686 units in May. Passenger vehicle sales rose 13.5% to 3.34 lakh units. Passenger car sales declined 2.97% to 1.2 lakh units. SUV sales rose 33.5% to 1.55 lakh units. Two-wheeler sales jump 17.4% to 14.71 lakh units. Motorcycle sales up 20.6% to 9.89 lakh units. Scooter sales grew 12.2% to 4.46 lakh units. Three-wheeler sales grew 70.4% to 48,732 units. – Positive on Maruti, Tata Motor, M&M, TVS Motor

 

·      Cummins India – Company had received various CPCB IV+ compliance certifications from the Automotive Research Association of India (ARAI) to provide its customers with various CPCB IV+ emission norms compliant gensets, effective July 1, 2023 – Long term positive

 

·      Patanjali Food – Company has chalked out an aggressive growth plan to reach Rs 5,000 crore operational profit and over Rs 50,000 crore turnover in the next five years, banking on huge opportunity that it sees in FMCG business and oil palm plantations. – Long term positive

 

·      Granules India – Company announced that the US FDA has approved its Abbreviated New Drug Application (ANDA) for Metoprolol Succinate Extended-Release Tablets. Metoprolol Succinate ER Tablets are indicated for the treatment of hypertension in order to lower blood pressure. The current annual U.S. market for Metoprolol Succinate ER Tablets is approximately $321mn – positive

 

·      Oracle Finance - Oracle Corp. gave investors a boost by saying the company’s cloud-computing business will continue to grow rapidly in the coming fiscal year after a strong performance in the past quarter. Shares, which had jumped to a record high at the close. Cloud sales gained 54% in the fiscal fourth quarter to $4.4 billion, after a 45% jump in the previous period. In the fiscal year ending May 2024, cloud revenue should increase at least as much as in the year that just ended, Chief Executive Officer Safra Catz said on a conference call after the results – stock gained 7% yesterday.

 

·      Sprayking Agro Equipment- Company received New Purchase order worth Rs60cr approx. - positive

 

·      L&T – Company wins significant hydrocarbon order – positive

 

·      L&T's - L&T Energy Hydrocarbon, bagged a "significant" contract from an overseas client for a new offshore project. The company did not provide financial details of the contract, but it classifies "significant" contracts as those between Rs1000cr –Rs2500cr - positive

 

·      Alan Scott – Company’s board approves 1:1 rights issue at Rs30 a share (CMP 60) - Avoid

 

·      HFCL wins Rs80.9cr from Delhi Metro Corp – positive 

 

·      Signet Industries Company bagged Rs 120 crore order from various EPC contractors. These order are for pipes in water supply project in state of Madhya Pradesh, Uttar Pradesh, Orissa, Rajasthan, Maharashtra. – positive

 

·      Inox Wind Energy: The company will merge with parent Inox Wind via a share swap. For every 10 shares of Inox Wind Energy, 158 equity shares of Inox Wind will be issued. For every 10 share warrants of Inox Wind Energy with an issue price of Rs 847 each, 158 share warrants of Inox Wind – positive

 

·      Tejas Networks: The company deployed its TJ1400 family of carrier-class fibre-to-the-x and packet switching network solutions to deliver high-speed fibre connectivity services to businesses across the country for Tata Tele Business Services.

 

·      Greaves Cotton: The company’s e-mobility business Greaves Electric Mobility has entered into an agreement with non-banking finance firm Bike Bazaar Finance to finance vehicles – Long term positive

 

·      Zydus Life – Company gets final approval from US FDA for Varenicine tablets – positive 

 

·      Focus on Metal stocks After China Central Bank Surprises With Rate Cut to Spur Economy and to consider stimulus - Expects positive for metal stocks after the China’s central bank surprised most economists and market participants by cutting a short-term policy interest rate and are stepping up stimulus to boost the recovery. The People’s Bank of China lowered the seven-day reverse repurchase rate by 10 basis points to 1.9. It was the first reduction in the rate since August 2022. China is considering a broad package of stimulus measures to boost the economy, including property support. Expects positive for metal stocks - . We are positive on Hindalco, Tata Steel, Nalco, Jindal Steel

 

 

News and Impact

News and Impact

 

 

·      Expects market to open on a positive note on account of strong opening in the Asian markets, US market hit fresh 2023 high and hope of US Fed to pause hike in interest rate will boost the market sentiment. SGX Nifty is up nearly half percent of 75 points. Expects range-bound market in the next few sessions on ahead of key US Federal Reserve interest rate decision to be announce on Wednesday and Inflation data to be announce tomorrow (Tuesday). Moreover, domestic CPI (Inflation) and IIP data to be release in the post market today.  Market likely to be in wait and watch mode until the important economy data outcome this week. ECB and Bank of Japan policy meeting, China IIP and Housing data to be release this week. On Friday, US market gained upto half percent ahead of the US Federal Reserve policy meeting to be announce this next week. US Dollar Index fell to 1-month low while US 10-Year and 2-year bond Yield spiked to 1-month high ahead of US Fed commentary and interest rate outcome. Positive factor the India Vix fell to record low at below 12, indicating a stable domestic market. Better than expected PMI data, stable inflation, both DIIs and FIIs buying interest, hope of good monoon and favourable government policy will be positive for the market sentiment. Expects rally on mid-cap and small cap stocks to continue – focus on tyre, capital goods, cement and defence stocks due to impressive quarterly results, strong order book. Metal stocks may be positive on account of increased LME price and hope of rising China demand after the government announced stimulus. Auto stocks may be positive after announced strong monthly sales data.

 

·      US Market   –Wall Street’s benchmark S&P 500 index inched higher on Friday in subdued trading, as traders largely stayed on the sidelines ahead of the US Federal Reserve policy meeting next week. Both Dow Jones and Nasdaq Composite gained 0.2% and 0.5% respectively.

 

·      Global market summary – Both Nasdaq and S&P 500  hit fresh 2023 high. US 2-Year and 10-year bond yield surged to 1-month high. US Dollar Index fell to 1-month low

 

·      Asian Market – Asian stocks and US equity futures made small gains while major currencies traded in narrow ranges in cautious trading early Monday as investors await interest rate decisions this week from the US, Europe, China and Japan. Japan, Australia and Taiwan Index gained half percent each.

 

·      European Market -  European markets close in the red Friday ahead of potential European Central Bank and US Federal Reserve rate hikes next week.. UK Index slipped 0.5% while  Germany and France Index declined gained 0.2% each

 

·      Oil –  Oil declined 2% to below $75/bbl as demand concerns continue to dominate market sentiment even after Saudi Arabia’s unilateral pledge to cut production. Goldman Sachs Group Inc. cut its price forecast again.(media report)

 

·      Gold –Gold edged marginally lower at $1956/ounce before a Federal Reserve meeting this week at which policymakers are expected to pause interest-rate increases to take stock of banking sector strains.

 

·      Previous Day market Update –.Equity benchmark index fell nearly half percent for the second consecutive days  as traders booked profit ahead of US Fed rate decision to be announce next week. Investors sold at higher level after witness a rally of over 7% in the last two months. while the RBI on Thursday extended its rate pause but underlined its inflation focus, denting hopes of any policy easing soon. Select mid-cap, stock specific action and cement stocks recorded smart gain. Among the global markets, Asian markets recorded smart gained while European markets are witnessing mixed bag as investors look toward key upcoming central bank decisions. A jump in US jobless claims to the highest since October 2021 helped to boost bets the Federal Reserve may hold rates at its meeting next week. Sensex ended 223 points or 0.40% lower to settle at 60,625 and Nifty dropped 71 points or 0.40% to end at 18,563. Among Nifty pack, Tata Steel, SBI, HUL, HCL Tech, Infosys, and Asian Paints closed with losses, while IndusInd Bank, Axis Bank, Power Grid, L&T, UltraTech Cement, and Tata Motors closed with gains. Nifty PSU Bank, IT and FMCG Index declined by 1% each.  FIIs were net sellers Rs309cr while DIIs were net buyers Rs1245cr previous day.

 

·      Nifty Technical Levels – Nifty formed a small bodied Bearish candle on weekly frame with long upper shadow but has been making higher highs from the last eleven weeks. Now till it holds below 18676, some weakness could be seen towards 18442 and 18350 zones while hurdles are placed at 18676 and 18777 zones.

 

·      Bank Nifty Technical Levels – Bank Nifty formed a small bodied candle on daily scale but holding well above its crucial 20DEMA and closed near 44000 marks. On weekly scale, it has formed a small bodied candle as well but structure of higher highs - higher lows is intact from the last eleven weeks. Now it has 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 – Sona Com, BHEL, Tata Motor, HAL, Mazagoan Dock,

 

·      Brokers Radar – Dr Reddy TGT by Morgan Stanley at 5171 and Morgan Stanley TGT on Zydus Life at 646. Metropolis TGT by Morgan Stanley at 350, Citi TGT on Tata Motor at 635. Macquarie TGT on Tata Motor at 624. UPL TGT by HSBC at 850, PI Industries TGT by HSBC at 4000. Nomura TGT on JSW Steel at 605. KEC International TGT Nomura at 598.

 

·      Events – CPI and IIP data. Go-Fashion block deal.  GHCL de-merger unit its textiles division to be listed today.

 

·      Corporate Action  - Apcotex Industries AGM and Dividend Rs3.50, ICICI Lombard Rs5.50, Cyient Rs16. Reliance Industrial Infra Rs5.50, Tata Investment – AGM and ex-dividend Rs48, ION Exchange stock split from Rs10 to Re1

 

·      Global Data – Monthly Budget (US), Economic Survey (UK).

 

·      Market Summary – VLCC Health Care to acquire D2C men's grooming brand Ustraa for Rs 61 crore, Cochin Shipyard bags order. General Electric Nears Jet Engine Co-Manufacturing Deal with HAL, Mahanagar Gas to set up compressed biogas plant in Mumbai, SBI board approves raising Rs 50,000 crore via bonds, Indoco’s Baddi Facility Receives EUGMP Certification.

 

·      Go Fashion: According to reports, Sequoia Capital plans to sell its stake in Go Fashion, the parent company of Indian clothing brand Go Colors, through a block deal. The stake being sold amounts to up to 10.18%. The report revealed that the floor price for this stake sale is set at ₹1,135 per share, representing a 5% discount compared to the last closing price – Buying opportunity.

 

·      InfoEdge - VLCC Health Care will acquire Happily Unmarried Marketing which runs the D2C men’s grooming brand Ustraa via a mix of cash and share swap for Rs 61 crore – Positive for InfoEdge due to Happily Unmarried is a subsidiary on InfosEdge.

 

·      Mahanagar Gas - Company will set up a compressed biogas (CBG) plant in Mumbai in collaboration with the Brihanmumbai Municipal Corporation (BMC). The CBG plant, with a capacity to process up to 1,000 tpd – positive

 

·      HAL - General Electric Co is reportedly in final talks with Hindustan Aeronautics regarding a partnership for co-manufacturing jet engines in India. The deal is expected to be inked either before or during a visit by Indian Prime Minister Narendra Modi to Washington, D.C., later this

·      month, CNBC reported. – Positive

 

·      TVS Motors: TVS Credit Services Limited, the captive financing arm of TVS Motor Company, on Friday, said it has raised Rs. 480 crores from Premji Invest, a prominent investment firm. Through a combination of primary and secondary investments, Premji Invest will acquire a 9.7% equity stake in TVS Credit for Rs. 737 crores, the company said - positive

 

·      Allcargo Logistics: Company has completed the acquisition of 1.50 lakh shares, or 30 per cent stake, in Gati-Kintetsu Express (GKEPL) for ₹406.71 crore Allcargo’s subsidiary, Gati already holds 70% stake in GKEPL.- positive

 

·      SBI: Company said its board has approved a proposal to raise up to ₹50,000 crore this fiscal year through various debt instruments. - positive

 

·      KEI Industries – Credit Research firm India Ratings & Research retained its AA rating on Kei Industries'long-term bank facilities and A1+ rating on the electric wires company's short-term bank financing. The rating outlook was revised to positive from stable. – Positive

 

·      Greenlam Industries – Company announced the opening of a new plant in Tindivanam, Tamil Nadu. The company has spent Rs 130 crore till commencement of the commercial production.- positive

 

·      Macrotech Developers – Rating agency ICRA upgraded its rating on the company from 'stable' to 'positive'. The credit rating agency increased its rating on the back of strong operating performance in FY23 led by healthy growth in collections and cash flows from operations – positive.

 

·      Cochin Shipyard - The company has been declared as L1 by the Indian Navy for MR/Mid Life Upgrade of an Indian Naval Ship worth Rs300cr - positive

 

·      Maharashtra Seamless- Company has made voluntary prepayment of outstanding long term loan of Rs. 234 crore approx. (~ USD 28.38 mn) – positive

 

·      Vedanta - The Government of Goa vide its 'Notice Inviting Tender' dated January 25, 2023, had invited tenders to participate in electronic auction for grant of Mining Lease in respect of iron ore mines in the State of Goa. The Company had submitted its bid in electronic auction for grant of Mining Lease.- wait for final outcome of Iron ore bids

 

·      Titagarh Rail  – Company approves preferential issue to Smallcap World Fund Inc worth Rs288.8cr on preferential basis at a price of Rs. 380 per share as against floor price of Rs. 347.68 per share – positive

 

·      Websol Energy – Company eceives project funding from IREDA for term loan worth Rs179.20cr to commission a600 MWP Mono PERC bifacial solar cell manufacturing facility and a 550 MWP module manufacturing facility in the foreseeable future.  – positive

 

·      Zydus Lifesciences  - Company has received final approval from the USFDA for Balsalazide Disodium Capsules USP. Balsalazide Disodium Capsules USP, 750 mg had annual sales of USD 29 mn in the United States (IQVIA MAT April 2023). – positive

 

·      Avantel Limited - Company has signed a contract worth of Rs.54.38 Crores dated June 9, 2023 with Ministry of Defence, Coast Guard Headquarters, New Delhi. – positive

 

·      IndiGo - For the first time ever, company expands across the Atlantic with new codeshare connections to the US – positive

 

·      Premier Explosives – Company has received orders from Bharat Dynamics Limited for Supply of PI & P2 Motors of MRSAM worth Rs. 43.26 crores and from Larsen & Toubro Limited for Supply of PSOM-XL motors worth Rs. 13.94 crores.- Positive

 

·      Karnataka Bank - Mr. Srikrishnan Hari Hara Sarma assumes charge as Managing Director & CEO of the company - positive

 

·      Jeevan Scientific Technology - The World Health Organization (WHO) has concluded that the inspection is closed successfully and has released the closure letter on 09th June, 2023 for the WHO inspection of the company’s Bio-Analytical facility and Clinical Pharmacology Centre, Hyderabad - positive.

 

·      IEX - Shares of Indian Energyn Exchange fell by 8% yesterday to a two-year low after Ministry of Power asked CERC to initiate the process of market coupling for power exchanges. It also asked Central Electricity Regulatory Commission to take suitable action for consultation and finalisation of a construct with multiple exchanges. The coupling of exchanges is expected to bring down the market share of Indian Energy

 

·      SBI – Company received board approval to raise fund up to Rs 50,000 crore through debt instruments in the current financial year. The funds will be raised through private placement on the government's approval.

 

·      Zydus Lifesciences – Company has started the phase 4 trial for Saroglitazar Magnesium effects on comorbid patients. Saroglitazar Magnesium is used to treat non-alcoholic fatty liver disease. – positive

 

·      Five-Star Business Finance – Credit rating agency CareEdge Ratings increased its rating for the long-term bank facilities. The rating agency increased its rating for long term bank facilities of the company to AA-; Stable from the earlier rating of A+ Stable. Improvement in market capitalization levels, which stood at Rs 4,285 at the end of the previous fiscal year. Gross loan portfolio growth of 36.47% growth at Rs 6,915 crore, against the previous fiscal year end figure of Rs 5,067 crore - positive

 

·      Dr. Reddy's Lab- Company has been given U.S. FDA approval for cyclophosphamide.  The drug is used used as chemotherapy and to suppress the immune system in certain cases – positive

 

·      Best Agrolife Ltd – Company has received the registrations for the indigenous manufacturing of the product Trifloxystrobin 10% + Difenoconazole 12.5% + Sulphur 3% Sc under section 9 (3) FIM from Central Insecticides Board & Registration Committee (CIBRC).

 

·      KPI Green – Company received commissioning certificates from the Gujarat Energy Development Agency (GEDA) for one of its projects. Company received Commissioning Certificates from Gujarat Energy Development Agency (GEDA) for a 7.20 MW wind-solar hybrid power project – positive

 

·      Maan Aluminum – Company approves issue of bonus issue in the ratio of 1:1 and approved splitting each share into two (from Rs10 to Rs5) – Avoid

 

·      Hazoor Multi – company has received approval to start the construction of Samruddhi Expressway in Nasik for Rs 119.18 crore.- positive

 

·      Indoco’s Baddi Facility Receives EUGMP Certification From Health Authority Of Germany - Company has received EU GMP certification from the Competent Health Authority of Germany for its manufacturing site situated at HB 211 Village Katha, Nalagarh, Solan, Baddi plant. The EU GMP certification issued by the German Health Authority (Berlin) confirms that the site complies with the Good Manufacturing Practice requirements as referred in the EC Directive.

–       positive 

 

·      L&T Finance: Company’s aims to maintain a compound annual growth rate (CAGR) of over 25% predominantly by focusing on retail financing as a long-term strategy, a senior company official told news agency PTI on June 11. With the current growth rate, the retail portfolio of the group is estimated to reach ₹1,00,000 crore by fiscal 2025-26. L&T Group's non-bank financing vertical grew by 35% in FY23. In the current fiscal year, the company officials expect retail to reach 80% of the total loan book, two years ahead of the target under its goal. – positive

 

·      Star Health and Allied Insurance Company: Company announced that its founder and director Venkatasamy Jagannathan has tendered his resignation from its Board with immediate effect. – Avoid.

 

·      Container Corporation of India: After the ₹12,000 crore of disinvestment plan of Container Corporation of India (CONCOR) garnered the attention of global majors like Maersk, the process stands at status quo because of the concerns raised by the railway ministry, its parent organisation – positive.