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
