News and Impact
· Expects market to open on a strong note on account of across global market rally due to boosted sentiment after reported positive US economy data, hope of US Fed to pause hike in interest rate and strong domestic economy data. U.S. stocks climbed up to 2% (Dow Jones gained over 700 points) on Friday after a labor market report showing moderating wage growth in May, indicating the Federal Reserve may skip a rate hike in two weeks, while markets welcomed a Washington deal that avoided a catastrophic debt default. The Cboe Volatility Index, or VIX, dropped below 15 from an average of 23 in the past year after the US private sector payrolls increased by 339,000 in May, compared estimate of 190,000. Russell 2000 index of small caps, the home of several regional banks soared about 3.5%. SGX Nifty is up nearly 100 points or over half percent. On the domestic front, easing inflation, stronger-than-expected economic growth data (FY23 GDP 7.2% - expectation 6.9%), persistent FIIs buying interest, fast-paced expansion of India's factory output (May PMI 31-Month high) and better than expected auto monthly sales data will have positive impact on market sentiments. RBI credit policy would be announce on 8th June or Thursday while US Fed rate decision to be release on subsequent week or June 14. Expectation of RBI to keep unchanged interest rate on account of cooling down inflation. Among the sectors to be watch for today – metal stocks will be in focus after the news that the China is working on a new basket of measures to support the property market. Interest sensitive sectors like banks, finance, real estate and auto stocks will be in momentum ahead of RBI credit policy. Tech stocks may be positive after the global IT major Index, Nasdaq Composite surged to 9-month high.
· US Market – U.S. stocks jumped Friday, with the Dow Jones closing up 701 points orv over 2% , after the May jobs report showed the labor market is in surprisingly strong shape despite the Federal Reserve’s aggressive tightening of monetary policy in the past year. A mixed jobs report shaped the wagers on a Fed pause, with signs of labor-market slackening in May despite a pickup in hiring. Investor sentiment was high Friday following the blowout nonfarm payrolls growth in May reported by the Labor Department. Public and private sector payrolls increased by 339,000 in May, compared to the Dow Jones estimate of 190,000. Nasdaq Composite soared 1% while Dow Jones Index advance 2%.
· Global market summary – US CBOE Volatility Index fell to 2-year low to below 15, S&P 500 surged by 20% from the October low, indicating a bull market, US 2- year and 10-year spiked to 2-month low.
· Asian Market – Asian markets surged on Monday after the S&P 500 rose to the cusp of a bull market amid strengthening bets for a Federal Reserve rate pause this month. Japan Index surged over 400 points or 1.5%. Taiwan, South Korea, Australia Index gained over 1% each. A mixed jobs report shaped the wagers on a Fed pause, with signs of labor-market slackening in May despite a pickup in hiring.
· Oil – Oil advanced 3% to $77/bbl after the Saudi Arabia said it will make an extra 1 million barrel-a-day supply cut in July, taking its production to the lowest level for several years following a slide in prices.
· Previous Day market Update – Amid positive cues from global markets and strong domestic macroeconomic data, benchmark equity indices posted modest gains led by metal, select banking, pharma, and auto stocks. Easing inflation, stronger-than-expected economic growth data, and fast-paced expansion of India's factory output have improved investor confidence. Among the global markets, US, Europe and Asia markets gained between 1-2% (Hong Kong index gained 4%) after the US Senate passed legislation to suspend the country’s debt ceiling, ending a drama that weighed on market sentiment. Moreover, investors remain hopeful of US Fed to pause the hike in interest rate in the June policy meeting. Better than expected monthly sales data and USDINR fell to a 1-month low and persistent FIIs buying interest also added fuel to the market sentiment. Sensex advance 118 points or 0.20% higher to close at 62,547while Nifty gained 46 points or 0.2% to close at 18,534 against the previous day’s close. FIIs were net sellers Rs71cr while DIIs were net buyers Rs489cr yesterday.
· Nifty Technical Levels – Nifty has been forming lower highs from the last three sessions and closed the day with gains of around 45 points. It formed a small bodied Bearish candle on weekly frame but has been forming higher highs from the last ten weeks. Now it has to hold support of 18442 zones to witness an up move towards 18666 and 18750 zones while on the downside support exists at 18442 and 18333 zones.
· Bank Nifty Technical Levels – Bank Nifty has been forming lower highs - lower lows on daily scale from the past three sessions but holding well above its 20DEMA. It formed a Bearish candle on weekly scale but structure of higher highs is intact from the last ten weeks. Now it has to cross and hold above 44044 for an up move towards 44250 then 44500 zones while on the downside support exists at 43750 and 43500 zones.
· Actionable – Paytm, Tata Steel, National Aluminium, Bharat Forge, Tech Mahindra, Lemon Tree Hotel, SBI, Tata Chemical
· Brokers Radar – Vedanta – JP Morgan TGT at 280 from 350, Hindustan Zins TGT by JP Morgan to 205 from 235, Bharti Airtel TGT raised BY Goldman Sachs at 890 from 575 and Macquarie TGT at 1000, CITI TGT on AU Small Finance Bank at 765, M&M Finance TGT by Citi at 355 from 310, Bajaj Finance TGT by Morgan Stanley at 8500.
· Events – Maruti to launch new model Jimmy.
· Corporate Action - Hardwyn India – Bonus 1:3 and stock split from Rs10 to Re1. Shyam Metalic Rs1.80.
· Global Data – Service PMI, Manufacturing PMI, Durable Goods Orders (US). New Car Registration, Service PMI and Composite PMI (UK). Composite PMI and Service PMI (France). Composite PMI, Service PMI. Composite PMI, Service PMI (China)
· Market Summary – Apollo Hospitals Seeks $200m From Digital Unit Stake Sale: ET , Adani Ports hits lifetime high monthly cargo volumes in May 2023 , India’s Jobless Rate Falls to 3-Month Low of 7.7% in May: CMIE Data, ICICI Bank cuts lending rates, Mphasis Consulting Ltd to acquire eBECS Ltd., Mahindra Financial May Disbursements Rise 39% Y/y to Rs41.5B, Tata Chemical signed an MoU with the Gujarat Govt. to set up a 20 GW capacity lithium-ion cell manufacturing giga factory
· Focus on Forging stocks – Bharat Forge reported 10% surged its North America class 8 truck at 15500 unit (29% spiked MoM). Focus also, RK Forging, M&M Forging also
· Tata Chemicals: The company signed an MoU with the Government of Gujarat to set up a 20 GW capacity lithium-ion cell manufacturing giga factory with an investment of Rs 13,000 crore, the state government said in a statement. The company will reorganise its U.S. operations to rationalise the number of intermediate entities. – positive
· SBI Life Insurance: Insurance regulator IRDAI approved transfer of life insurance business of Sahara India Life Insurance Co. to SBI Life, with immediate effect. - positive
· Indian Overseas Bank: The Reserve Bank of India imposed a monetary penalty pf Rs 2.20 crore on the bank over regulatory non-compliance.- Avoid
· Tech Mahindra: The company’s subsidiary Comviva Technologies and step-down subsidiary Comviva Technologies B.V. have agreed to sell 0.04% and 99.96% shareholding, respectively in Comviva Technologies do Brasil Indústria, Comércio, Importação e Exportação to Druid Internet Systems Comércio E Serviços for an upfront payment of $20,000 and deferred payment of $1.42 million. – We are positive on the stock
· Godrej Properties: The company bought the remaining 26% stake in Godrej Home Constructions for Rs 14.99 crore, taking its total shareholding to 100%. – positive
· Mahindra Lifespace Developers: Japan-based Omron Healthcare will start operations at Origins by Mahindra industrial cluster in Chennai by March 2025. – positive
· PI Industries: The company completed acquisition of 100% stake of Therachem Research Medilab (India) and Solis Pharmachem, as well as acquisition of certain identified assets of TRM U.S. by PI Health Sciences U.S.A. – positive
· IPCA Lab - The Income Tax Department has carried out survey proceedings at the Company's offices in Mumbai and at Sikkim manufacturing plants between 30th May, 2023 to 3rd June, 2023.- Any sharp decline will be buying opportunity
· Lemon Tree Hotel – Company announced the opening of two of its latest hotels - Lemon Tree Hotel, Agra and Lemon Tree Hotel, Bhopal. - positive
· NTPC –Company commissions last part capacity of 50 MW of 300 MW Nokhra Solar PV Project and 50:50 JV with IOC - positive for long term
· Wonder Holidays – Company has announced that the Government of Tamil Nadu has granted waiver of Local Body Tax (LBT) of 10% for a period of 10 years from the commencement of commercial operations, after persistent efforts by the Company.- Positive
· Lupin Labs – Company announced the launch of Darunavir Tablets in US MARKET of , 600 mg and 800 mg. Darunavir Tablets, 600 mg and 800 mg (RLD Prezista®) had estimated annual sales of USD 308 million in the U.S. (IQVIA MAT March 2023). – positive
· Indo Rama Synthetics – Company has successfully started commercial production of "Bottle grade PET resins" from its newly constructed Solid-State Polymerisation (SSP) Plant at Butibori, Nagpur, Maharashtra- Positive.
· Wipro – Company fixes June 16, 2023 as record date for buyback
· Hero Motocorp - Compnay launched a refreshing new range of its highly popular 100cc motorcycle - the HF Deluxe. – positive
· Zydus Lifesciences- Company announced that the group's animal health drug manufacturing facility at SEZ, Ahmedabad underwent a USFDA inspection from 30th May to 2nd June, 2023. The inspection closed with nil observations. – positive
· Indoco Remedies - The USFDA had inspected Indoco Remedies facility located at Goa, from February 20, 2023 to February 28, 2023. The said Facility had 4 observations in Form 483. – Avoid
· India’s Jobless Rate Falls to 3-Month Low of 7.7% in May: Unemployment rate fell to a three-month low in May as about 12 million people who were either employed or looking for work dropped out of the labor force, according to the Centre for Monitoring Indian Economy Pvt. (CMIE). Jobless rate in May was 7.7%, compared with 8.5% in April.
· TARC Ltd (Annad Raj) - Company announced another pre-payment of its NCD commitments. Company has made a payment of RS. 87.95 crores on June 1, 2023, out of which Rs.56.90 crores has been towards partial redemption of unlisted NCDs. – positive
· Tata Elaxsi – Company has partnered with Cultos Global to integrate a Blockchain mechanism from Cultos Global with its TETHER Connected Vehicle Platform, to create an innovative Driver Reward Program. – positive
· Hero Motocorp - Company reported May monthly sales volume at 519474 unit (up 7% YoY) – Expectation 418565 unit
· DCB Bank – Company names Ravi Kumar as CFO – positive
· ICICI Bank cuts lending rates - ICICI Bank has reduced its marginal cost-based lending rates (MCLR) for the month of June 2023. The one-month MCLR has been reduced from 8.50% to 8.35%, while the three-month MCLR has experienced a 15 basis point decrease, settling at 8.40%. – Positive
· Bank of Baroda – Company approved raising of additional capital worth Rs5000cr via Tier 1 and Tier 11 bond – Positive
· M&M Finance - Collection efficiency was at 96% for May, compared with 95% a year earlier, Mahindra and Mahindra Financial. Business assets at Rs85500cr ($10.4 billion), rise 3.3% over March. Stage-3 and Stage-2 assets continued to remain range-bound compared with March.
· Adani Ports hits lifetime high monthly cargo volumes in May 2023 – Company handled over 36 MMT of total cargo at its ports, implying 19% YoY growth. On YTD basis, APSEZ has clocked ~68.5 MMT of overall cargo volumes, which is a good 16% YoY growth – positive
· Allcargo Logistic – Company has announced several significant appointments in key leadership positions within the organisation. These strategic appointments post demerger, reinforce for growth. These appointments exemplify Allcargo Group's commitment to driving expansion and enhancing its presence in the dynamic logistics industry. Mr. Adarsh Hegde, who is the joint Managing Director, based out of Mumbai has been with the organization for over 30 years, has now been promoted to the position of Managing Director.- Positive
· Minda Corp - Company has considered and approved the proposal of raising of funds through public and/or private offerings including preferential issue, qualified institutions for an aggregate amount not exceeding Rs600 Crores – positive
· Ramco Systems – Company announced the inauguration of its wholly owned subsidiary in Qatar, to support and transform the region's business houses and MNCs in the area of ERP, HR, and payroll. – positive
· M&M - Swaraj Tractors, part of the Mahindra Group, launched a Compact Light Weight tractor range called the 'Swaraj Target'. - Positive
· Jyoti Ltd - Company has secured a prestigious order of Rs. 6.21 Crores from IOC – Positive
· Mphasis– Company has signed a definitive agreement to acquire 100% of the shares in eBECS Limited (a wholly owned subsidiary of DXC UK International Operations Limited), (the "Acquisition"), subject to fulfilment of closing conditions. eBECS Limited is a subsidiary of DXC UK International Operations Limited. It is one of the largest Microsoft Dynamics partners in the UK and Ireland region. – positive
· Apollo Hospitals Seeks $200m From Digital Unit Stake Sale: Apollo Hospitals plans to raise around $200million by selling as much as 6% stake in its omni channel health care digital unit Apollo HealthCo, The sale is expected to value the company $2.5 billion to $3 billion. Apollo HealthCo owns digital health platform Apollo 24/7, a pharmacy distribution business, and a 25.5% stake in Apollo Pharmacies.
· IndiGo to Start Flights to Six New International Destinations - Biggest airline InterGlobe Aviation, which flies under the IndiGo brand, will start flights to six new international destinations across Asia and Africa – Positive
· Bank of Maharashtra – Company announced the launch of its qualified institutional placement to raise funds, beginning June 1, 2023 late Thursday. The bank plans to raise funds via the QIP issue at the floor price of Rs 29.98 a share. The board of directors will reconvene on June 6, 2023, to determine the issue price for the allotment to QIP.
· SJVN: The company signed a project development agreement of 669 MW Lower Arun Hydroelectric Project in Nepal. The company is also developing a 217 km long associated transmission network for power evacuation and export to India. – Positive
· NTPC: Company signed a deal with Uttar Pradesh Rajya Vidyut Utpadan Nigam to develop renewable energy parks and project in Kalikot – positive
· GAIL (India): The company infused into JBF Petrochemicals Rs 2,101 crore, including equity worth Rs 625 crore and debt worth Rs 1,476 crore, under the resolution plan for the latter. With this, JBF Petrochemicals has become a wholly owned subsidiary of GAIL. - positive
· Prism Johnson: Of the proposed investment to acquire a 45% stake in Renew Green (MPR Two), the company has acquired 72.76 lakh shares for Rs 7.28 crore.- positive
· Affle (India): Affle International Pte., a wholly owned Singapore subsidiary of the company, has completed the 100% acquisition of YouAppi Inc. - positive
· Anmol India – Company approves bonus issue of 4 shares for every 1 held - Avoid
· Greenply Industry approves disposal of Myanmar unit asset – positive to exit non-core business.
