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
