Sensex ends 174 pts up, Nifty near 15,800; IT, pharma indices hit new peaks

Topics MARKET LIVE | Markets | Sensex

Stock market updates: Market bulls rode the global momentum on Dalal Street on Friday, hitting new lifetime highs on the way. Bond yields in the US and Euro zone fell, with German 10-year yields set for their biggest fall this year, as investors bet on ultra-lose monetary policy to stay in place. 

Data published on Thursday showed that the US consumer price index swelled the most in a month since August 2008 at 5 per cent, following a 4.2 per cent rise in April. Yet global stocks hit record peaks as investors believed the Federal Reserve would continue to keep interest rates low to maintain the recovery pace. 

Moreover, the European Central Bank's statement that a policy tightening at this stage would be premature and would pose a risk to the ongoing economic recovery further lent support to the bullish sentiment on the Street.

The third factor adding to global rally was data from the UK which showed that Britain's economic output grew by 2.3 cent on a monthly basis in April, marking the fastest growth since July last year.

Globally, the Euro STOXX 600 added 0.3 per cent, London shares gained 0.6 per cent, while Paris climbed 0.4 per cent. In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan was last up 0.4 per cent.

Backed by firm global cues, the frontline S&P BSE Sensex hit an all-time-high of 52,641.5 while the broader Nifty50 index claimed 15,835.5-mark in morning deals. In the broader markets, the BSE MidCap and SmallCap indices, too, touched new peaks of 23,045 and 25,249 levels, respectively.

That said, a fag-end weakness in banking, realty, and FMCG counters dragged the markets off highs. By close, the BSE barometer was at 52,475 levels, up 174 points or 0.33 per cent while the 50-share Nifty index ended at 15,799 levels, up 62 points or 0.39 per cent.

The BSE MidCap index, on the other hand, closed 0.14 per cent up while the BSE SmallCap index ended 0.4 per cent higher.

Sectorally, the Nifty Metal index zoomed nearly 3 per cent on the NSE, followed by the Nifty IT and Pharma indices, up over 1 per cent higher each. On the downside, the Nifty Realty and PSU Bank indices slipped up to 1 per cent.

LIVE UPDATES

TECH VIEW :: Ashis Biswas, Head of Technical Research at CapitalVia Global Research

The market witnessed some lackluster movement and an attempt to hold the support level around the Nifty 50 index level of 15800. Sustaining above 15800 levels, The market expects to gain momentum, leading to an upside projection of 15900 levels. The market expects 15900 and will act as resistance but technical factors are aligned to support the positive momentum to continue.

TECH VIEW :: Market momentum is slowing down, but bias remains positive

The short term uptrend continued in the market after one day of recent dips. Though, momentum on the upside has slowed down, the market breadth remains intact and there is no indication of any profit booking or reversal emerging from the highs. The next upside levels to be watched around 16000 and immediate support is placed at 15690

Views by: Nagaraj Shetti, Technical Research  Analyst at HDFC Securities

TECH VIEW :: Sumeet Bagadia, Executive Director at Choice Broking

Technically, the index has been rising with Higher Highs & Higher Lows formation from the last couple of weeks. In the recent session, it has confirmed the Bullish Harami Candlestick pattern breakout on the daily chart. On an hourly chart, the index has settled above 9*21 HMA, which suggests a bullish move in the counter. Moreover, an oscillator Stochastic has also suggested positive crossover, which indicates bullish strength for the near term. At present, the nifty seems to have resistance at around 16000 levels while immediate support shifted up to 15650 levels.

'Economic factors supportive of bull run'

FPIs have remained net buyers, month to date, to the tune of ~Rs.4769 cr underpinned by steady decline in Covid-19 cases in India and decent GST collections in April. We expect FPI flows to India, in the medium term, to remain strong as India is at a cusp of growth revival path. Interestingly, low interest rates, better exports outlook and revival in global economy is a good combination for India’s economic revival. Domestic demand revival will also be supported by upcoming festival season.

Views by: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities

Nifty hits record high but fails to hold gains. What's the next resistance zone?

Nifty rose for the fourth consecutive week, ending 0.82% higher for the week. Advance decline ratio fell again but remained above 1:1, as periodic profit taking by investors resulted in this. Overall sentiments remain up, inflation fears seem overdone and investors now await US Fed’s decision on June 16. 15889 could be the next resistance for the Nifty while 15705 could be the support.

Views by: Deepak Jasani, Head of Retail Research, HDFC Securities

TECH VIEW :: Market is rallying on a slowed-down momentum,

Nifty50 index closed on a positive note touching new all time high. The index now seems to be finding the new range on the higher side as the dip up to 15560 on Wednesday was quickly bought into. Nifty index rallied more than 10% from the recent correction low and hence a mild pullback cannot be ruled out.  Given that the market is rallying on a slowed-down momentum, which can be properly visualized with the help of negative divergence in RSI on daily timeframe. Any sustained close below 15400 should be treated as RED signal for short term. As long as benchmark index is trading above 15400, we suggest traders maintain a bullish bias on market.

Views by: Nirali Shah, Head of Equity Research, Samco Securities 

What will drive the markets next week?

Markets will first react to the IIP numbers in early trade on Monday. Going ahead, the progress of the vaccine drive and updates on the monsoon will be closely watched by the participants for cues. While the trend is bullish, the underperformance of the banking pack is certainly hurting the sentiment however we expect the bias to improve next week. Meanwhile, traders should focus on other sectors and use intermediate dips to add the selected stocks. 

Views by: Ajit Mishra, VP - Research, Religare Broking

MARKET VIEW :: What drive indices to record highs today

Tracking cues from positive global markets, Indian equities remained in the green zone in today’s session. US CPI data, released yesterday, eased inflation worries as the current surge is temporary and insufficient for the Fed to taper its bond-buying policy. Global sentiments were further boosted with European Central Bank raising its growth estimates and pledging its liquidity support


Views by: Vinod Nair, Head of Research at Geojit Financial Services

MARKET RECAP :: S Ranganathan, Head of Research at LKP Securities

Markets held firm in today's trade despite a spate of new public issues being lined up this month. IT & Metals were in the limelight with select Pharma stocks lending support. Several Small Caps having rallied multiple times in CY2021, there was a sense of caution as investors resorted to profit-taking. The timely arrival of the Monsoon however kept the mood buoyant as several Midcaps were seen buzzing around

Sector of the day :: IT stocks rally; LTI, OFSS surge 4% each


Sector of the day :: Nifty Metal index soars 2.7%


NSE Snapshot :: Top Nifty50 gainers of the day


Sensex contributors :: RIL, Infy, TCS supported the index today


Broader market :: S&P BSE SmallCap adds 0.4%

>> The index claimed new record of 25,248 today


Broader market :: BSE MidCap index ends 0.14% higher

>> The index hit new peak of 23,045 in intra-day trade


Sectoral trends on the NSE


Sensex Heatmap at Close

Top gainers: Dr Reddy's Labs, Power Grid, TCS

Top losers: Axis Bank, Bajaj Finserv, L&T


CLOSING BELL

A fag-end weakness in banking, realty, and FMCG counters dragged the markets off highs. By close, the BSE barometer was at 52,475 levels, up 174 points or 0.33 per cent while the 50-share Nifty index ended at 15,799 levels, up 62 points or 0.39 per cent.

IPO Alert :: Dodla Dairy Limited Initial Public Offer to open on June 16, 2021

Price Band fixed at Rs. 421 to Rs. 428 per equity share

Offer to remain open from Wednesday, June 16, 2021 to Friday, June 18, 2021

The IPO consists of a fresh issue aggregating up to Rs 500 million and an Offer for Sale of up to 10,985,444 Equity Shares

Virgin Atlantic leans on TCS to power growth, transformation-led growth

Tata Consultancy Services (TCS), announced that it has expanded its strategic partnership with Virgin Atlantic, one of the UK’s leading airlines, to help the latter embark on a new phase of recovery and growth.
 
The enhanced partnership builds on a 17-year relationship between the two organisations and will see TCS take exclusive responsibility for end-to-end operational management and digital transformation. READ MORE

Nifty Pharma index hits new high; Aurobindo, Dr Reddy's gain over 3%

Shares of pharmaceutical companies continued their upward journey at the bourses, with the Nifty Pharma index hitting a new high for the third straight day on Friday, amid strong gain in Aurobindo Phamra, Dr Reddy’s Laboratories and Cadila Healthcare, which rallied up to 5 per cent, each, on the National Stock Exchange (NSE). READ MORE

European shares hit record high, bond yields fall as inflation fears ease

Shares gained on Friday and bond yields fell from the United States to Europe as investors shrugged off rising U.S. consumer prices, even as fears of longer-term inflation lingered. The Euro STOXX 600 added 0.3% to hit a record high and was on course for a sixth straight day of gains. London shares gained 0.6%, helped by a 1% gain for the mining sector, while Paris climbed 0.4%. READ MORE

BREAKING NEWS :: Supreme Court rejects plea seeking loan moratorium

Supreme Court rejects plea seeking loan moratorium, interest waiver, and financial reliefs from the govt,  
 
SC observes that it is not for the courts to dictate govt policies & that it is not an expert in matters of finance

Source: TV reports

 

Nomura ups India's 2022 GDP forecast to 7.7%; sees inflation at 5.3%

“We raise our 2021 and 2022 current account (CA) deficit forecasts to 1.5 per cent and 1.3 per cent of GDP, respectively (from 1.1 per cent and 0.8 per cent), and CPI inflation to 5 per cent and 5.3 per cent (from 4.9 per cent in both years). We also pencil-in an additional 25bp repo rate hike in Q3 2022,” wrote Sonal Varma, managing director and chief India economist at Nomura, in a recent co-authored note with Aurodeep Nandi. READ MORE

NEWS ALERT | Krishna Institute of Medical Sciences Limited’s IPO to open on Wednesday, June 16, 2021

-- Price band of Rs 815 to Rs 825 per equity share of face value of Rs. 10 each (“Equity Shares”)

-- Bid /Offer Opening Date – Wednesday, June 16th, 2021 and Bid/ Offer Closing Date – Friday, June 18th, 2021

-- Minimum Bid Lot is 18 Equity Shares and in multiples of 18 Equity Shares thereafter

-- The floor price is 81.50 times the face value of the Equity Shares and the Cap Price is 82.50 times the face value of the Equity Share

OPEC+ will need to boost output to meet 2022 demand recovery: IEA

"OPEC+ needs to open the taps to keep the world oil markets adequately supplied," the Paris-based energy watchdog said, adding that rising demand and countries' short-term policies were at odds with the IEA's call to end new oil, gas and coal funding in a stark report issued last month.
 
"In 2022 there is scope for the 24-member OPEC+ group, led by Saudi Arabia and Russia, to ramp up crude supply by 1.4 million barrels per day (bpd) above its July 2021-March 2022 target," it said in its monthly oil report. READ MORE

Gayatri Projects slips 18% after NHAI declares company as non-performer

Shares of Gayatri Projects slipped 18 per cent to Rs 31 on the BSE in intra-day trade on Friday, amid heavy volumes, after the National Highways Authority of India (NHAI) declared the company a non-performer and prohibited from participating in the ongoing and future bids for the road projects till defects and deficiencies in one of the company’s projects were rectified. READ MORE

BSE IT index hits record high; Wipro, Tech M too scale new peaks

Shares of information technology (IT) companies were in demand on the bourses on Friday with Wipro and Tech Mahindra hitting all-time highs, while Tata Consultancy Services (TCS) and Infosys were quoting close to their respective record highs on the BSE. Besides Wipro and Tech Mahindra, a total 10 stocks including Mastek, Mindtree, Happiest Minds Technologies, Mphasis and Coforge too hit their new highs in Friday's intra-day deals. READ MORE


Chinese ride-hailing firm Didi reveals $1.6-bn loss in IPO filing

The company in its first public filing for the IPO listed the offering as $100 million, a placeholder that will change when the company discloses terms for the share sale. Didi filed Thursday under the business name Xiaoju Kuaizhi Inc., with Goldman Sachs Group Inc., Morgan Stanley and JPMorgan Chase & Co. leading the offering. READ MORE

NEWS ALERT :: Ashoka Buildcon wins project worth Rs 726 crore


ED sends notice to crypto exchange WazirX for Rs 2,791-cr transactions

Enforcement Directorate (ED) on Friday issued show-cause notice to WazirX under the Foreign Exchange Management Act (FEMA), 1999 for transactions involving cryptocurrencies worth Rs 2790.74 crore. WazirX is an Indian crypto exchange that acts as a platform for trading various digital currencies. READ MORE


India's sugar exports touch 4.25 mn tonnes so far this year: AISTA

Sugar mills in India have exported 4.25 million tonnes of the sweetener so far in the ongoing 2020-21 marketing year ending September, with maximum shipments to Indonesia, trade body AISTA said on Friday. Mills have contracted to export 5.85 million tonnes of sugar so far, as against the 6 million tonnes quota assigned by the food ministry in January this year, All India Sugar Trade Association (AISTA) said in a statement. READ MORE


Don't go by history alone while picking hybrid fund, say analysts

Aggressive hybrid funds (AHFs) are currently outperforming dynamic asset allocation or balanced advantage funds (DAA/BAFs) across investment horizons. This has sparked a debate on whether it is better to invest in a category where the asset allocation remains static, or one where it keeps changing.
 
Higher equity allocation drove performance The equity markets have done well over the past year (the Sensex is up 54 per cent). READ MORE

SpiceJet, IndiGo ready for new war zone as cargo biz booms amd pandemic

There’s been a change in the SpiceJet pecking order since last year. Former head of Coca-Cola India Sanjiv Gupta, who leads SpiceJet’s logistics business, is now considered a key man by promoter Ajay Singh. There’s reason.
 
SpiceExpress--the logistics arm of the airline--has virtually kept the company afloat during the pandemic as the passenger business suffered record losses. In May alone, the airline earned Rs 200 crore from cargo operations and has now 5 per cent market share of the outbound cargo from India. READ MORE

Oil rally has more room, Brent expected to hit $80 per barrel: Goldman

US investment bank Goldman Sachs expects Brent crude prices to reach $80 per barrel this summer, betting that a recent oil market rally will continue as vaccination rollouts boost global economic activity and demand for the commodity. Brent prices hit $72.93 per barrel this week, their highest level in over two years, fuelled by expectations of stronger demand. Brent futures were trading at $72.21 a barrel on Friday, while U.S. West Texas Intermediate (WTI) crude was around $70 a barrel. READ MORE

Mid-market view | Gaurav Garg, Head of Research at CapitalVia Global Research

In morning trades, Indian equities indexes remained in the green, reflecting gains in their Asian counterparts. Sentiments remained positive as the progressive unlocking process across India is expected to restore nearly two-thirds of the 25 million non-farm employment lost following the lockdown in May, according to the Centre for Monitoring Indian Economy (CMIE) in its research. The Reserve Bank of India (RBI) has said that it would be buying bonds maturing between 2026 and 2035 which restores the confidence of the investors in the economic recovery. As economic statistics appeared to confirm the Federal Reserve's contention that the current wave of heightened inflation will be temporary, Wall Street equities closed higher on Thursday, with the S&P 500 500 closing above its previous record high. Asian markets followed the global peers and are trading in green.
 
The Indian market has been positive in the first half and has sustained an important level of 15800. Our research suggest that 15870-15900 will act as a resistance zone. 

State-run banks' shares outperform private peers on recovery bets

Shares of India’s state-owned banks are outperforming their private peers after 12 straight years of underperformance, with gains fueled by capital raising and optimism over potential stake sales by the government in some banks.
 
A gauge of public sector lenders has surged 39 per cent so far in 2021, as a broad improvement in the sector’s asset quality and India’s plans to transfer soured loans to a proposed bad bank boosts their growth outlook. READ MORE

MARKET UPDATE:: S&P BSE MidCap index slips into red


Asia stocks up, US bond yields dip to 3-month low as inflation fears ease

US bond yields dipped to three-month lows and a broad gauge of Asian shares rose on Friday as investors looked past rising U.S. consumer prices and focused on one off-factors which suggested higher inflation could be short-lived. Some economists say the rise in the U.S. consumer price index reflected short-term adjustments related to the reopening of the economy, and many investors appear confident that the Federal Reserve is deftly handling a rebound in economic growth - even as questions remain about how it defines "transitory". READ MORE
 

Investors lap up Bajaj Finance despite NPA warning; stock up 10% in 2 days

The stock of Bajaj Finance had corrected 6 per cent in the four days prior to Thursday as it slipped from its previous high of Rs 6,009 on June 4, 2021, to Rs 5,674 on June 9, after the consumer financier voiced concerns over asset quality issues due to localised lockdowns following the second wave of Covid-19. After reporting a healthy performance in Q4FY21, management of Bajaj Finance in a mid-quarter update indicated some adverse impact of Covid-19-related fresh lockdowns on business during the April-June quarter (Q1FY22). The company indicated that its B2B and auto finance businesses were most affected due to strict lockdowns in the majority of states. READ MORE

NEWS ALERT :: China suspends frozen seafood import from 6 Indian firms

EClerx Services, Alok Ind: Trading strategies for buzzing stocks of the day

eClerx Services Limited (ECLERX)

Likely target: Rs 1,800 and Rs 2,000

Upside potential: 11% and 23%

On Friday, June 11, the stock was locked in 20 per cent upper circuit, inevitably crossing the resistance range of Rs 1,400 to Rs 1,300 levels. This move has opened doors for further upside towards Rs 1,800 and Rs 2,000 mark, as per the daily chart. The stock has shown optimism even in the overbought category of the Relative Strength Index (RSI) and continues to do so. The immediate support comes at Rs 1,500 levels. READ MORE

Gold breaches $1,900 mark as dollar, yields dip after US inflation data

 Gold prices edged above $1,900 an ounce level on Friday, supported by a pullback in the dollar and lower bond yields, after data showing a rise in U.S. inflation was viewed inadequate to alter the Federal Reserve's easy monetary policy. Spot gold was up 0.1 per cent at $1,900.10 per ounce, as of 0518 GMT. Prices have risen more than 0.5 per cent this week. READ MORE

MARKET VIEW | Amar Ambani, Senior President & Head of Research – Institutional Equities, YES Sec

The stock market is solely focused on the future. Hopes of a quick economic  revival post unlock and expectation of large number of adult population vaccinated in 2021, are keeping markets excited. Q4 FY21 earnings have been encouraging, even after adjusting for the low base of March 2020. The broader market is very healthy. It is very likely that the top 10 heavyweights of the Sensex, which have been dormant for some time, will begin to participate. Already RIL has resumed its up move after a six month lull. This will add to the strength of Indian equities. Our target for Sensex is 60,000 by December 2021.

Omni channel expansion to support Bata India's growth recovery

Despite the muted show in the March quarter, the Bata India stock gained about 5 per cent in trade on growth expectations led by distribution expansion, omnichannel strategy and new launches. This could mark a reversal for the stock which has been lagging its peers since the start of the year on the back of weaker revenue growth and sub-par cost reduction efforts for 9MFY21. READ MORE

NEWS ALERT :: CRISIL assigns GVC Level 1 grading to Bharti Airtel

The grading indicates that corporate governance practices and value creation at the Company for all its stakeholders are at the 'Highest' level, the firm said in a filing. 



MARKET VIEW | Rahul Sharma - Head, Technical and Derivatives Research, JM Financial

Markets have moved from resilience to exuberance as Bulls continue to march towards mount 16,000 in Nifty with sector rotation & earnings keeping the momentum alive. Falling US Bond Yields along with supportive global cues ensure Nifty didn’t break key support levels. Good monsoon, improving Covid situation & falling VIX should keep markets driving higher. 

MARKET UPDATE:: Sensex off day's high


Stocks that hit 52-week high on BSE today

Company PRICE(rs) 52 WK HIGH CHG(%)
Aarti Industries 1813.00 1862.10 -0.79
Aegis Logistics 383.65 388.90 1.93
APL Apollo Tubes 1446.00 1478.60 1.56
Astral 1936.00 2030.00 -2.00
Bajaj Finance 6197.95 6228.60 1.81
» More on 52 Week High

Direct plans for equity schemes seeing steady rise since last 5 years

Nearly a sixth of equity assets under management (AUM) is now contributed by direct plans, which require investors to invest without the aid of distributors.
 
The share of such plans among equity schemes has risen around 7 percentage points from 9.6 per cent to 16.6 per cent over the past five years, latest data from Value Research for the quarter ended March 31 (Q4FY21) shows. A year ago, this figure stood at 15.5 per cent. READ MORE

Top gainers on BSE at this hour

Company PRICE(rs) CHG(%)
EClerx Services 1617.35 20.00
Alok Industries 27.45 12.73
VRL Logistics 301.60 12.68
Future Consumer 9.30 10.06
Future Retail 60.05 9.98
» More on Top Gainers

Tide Water Oil up 5% on 1:1 bonus, Rs 200 per share dividend, stock split

Shares of Tide Water Oil (India) locked in upper circuit of 5 per cent at Rs 11,458 on the BSE on Friday after the company announced 1:1 bonus issue, dividend of Rs 200 per share, and stock split from Rs 5 to Rs 2. The stock had hit a record high of Rs 12,991, on June 7, 2021, after the company announced stock split and bonus issue plan on May 26. Despite the correction from all-time level, the stock has rallied 144 per cent in the past one month, as compared to 7 per cent rise in the S&P BSE Sensex. READ MORE


Buffett bets on all-digital banks, but the world still needs Goldman Sachs

Warren Buffett, until last year a devoted shareholder of big U.S. banks, has moved on to their challengers. Does that spell the end of his faith in the traditional financial sector? This week, Berkshire Hathaway Inc. poured $500 million into Brazil’s Nubank--the fintech company’s largest single investment--giving it a valuation of $30 billion. READ MORE


'TCS stock has given 3,000% return since IPO'

Chandrasekaran said while Covid-19 disrupted life, it also brought positive changes and new opportunities for TCS. “Almost a decade of advantage has come in because the world is shifting to digital,” he said, adding, “Covid is going to impose sustainability in a big way. All companies will be moving towards adopting this.” READ MORE

MARKET VIEW :: Exercise caution while investing in smallcaps

The debate over the nature of inflation in US - whether transitory or structural - continues. Only time will tell who is right. But for now, the market is strongly on the side of equity bulls who believe that the high inflation is transitory & will soon stabilise. Even though the 5% consumer inflation print in May came worse than the consensus estimate of 4.4 % the market shrugged it off & the S&P 500 touched record highs. The fact that the US 10-year yield crashed to 1.44% and the dollar index is howering around 90 indicate that there is more leg for this bull market. The exuberance in the mid and small-cap space is an area of concern. But markets can over-react proving the sceptics wrong in the short run. In 2017 the small index rose around 60%. The froth was removed in 2018 with big pain to the late entrants. Leading financial, IT, pharma and metals are on a strong wicket. Stay invested in these segments while exercising caution when investing in small-caps.

-- Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

Coal India hits 52-week high, regains Rs 1 trillion market cap

Shares of Coal India hit a 52-week high of Rs 164.45 as they rallied 5 per cent on the BSE in intra-day trade on Friday amid expectations of improvement in earnings going forward. The stock of the state-owned company surpassed its previous high of Rs 162.95, touched on February 26, 2021. In the past two weeks, the stock has outperformed the market by gaining 12 per cent as compared to a 2.2 per cent rise in the S&P BSE Sensex. READ MORE

A $43-bn jump in Gautam Adani's fortune is fraught with many risks

Adani’s net worth of $76.7 billion got a boost from a 330% jump in Adani Total Gas Ltd., a 235% rise in his conglomerate’s flagship Adani Enterprises Ltd. and a 263% increase in Adani Transmission Ltd. this year. Adani group stocks, especially these three, “look extended,” Bloomberg Intelligence analysts Gaurav Patankar and Nitin Chanduka wrote in a June 10 note after analysing technical indicators. READ MORE

Most active stocks by volume

Company PRICE(rs) CHG(%) VOLUME
NHPC Ltd 27.10 0.18 50589219
Vodafone Idea 9.97 0.10 12267187
Alok Industries 28.55 17.25 9710358
Future Consumer 8.98 6.27 4804248
Suzlon Energy 7.25 -1.09 2536930
» More on Most Active Volume

Rupee opening

Rupee opens stronger at 72.94 per US dollar vs Thursday's close of 73.05/$

eClerx Services zooms 20%, nears record high on healthy Q4 results

In Q4FY21, the company’s profit after tax grew 39 per cent QoQ at Rs 98.8 crore. EBIT (earnings before interest and tax) margins improved 295 basis points (bps) to 27.6 per cent mainly led by lower sales & development expenses and higher gross margins. The company said total delivery headcount as of March 31, 2021 stands at 11,831 – an increase of 40 per cent year on year. READ MORE

Corporate Action :: Info Edge Board declares interim dividend of Rs 8/sh

The Board has declared Interim Dividend of Rs.8/- per share for the financial year 2020-21.
 
Record date for the purpose of determining the name of the members eligible for receipt of the Interim Dividend will be Tuesday, June 22, 2021.
 

Turbocharge upstream oil & gas sector to hasten India's post-Covid recovery

As India girds to rehabilitate its economy from Covid’s latest onslaught, pushing ahead with some key and long-awaited reforms in the upstream oil and gas sector could accelerate growth and also secure supply for the country’s growing energy needs. India's oil and natural gas production has been in a worryingly stubborn decline over the past decade. Crude output in the fiscal year ended March 31 fell by 5 per cent annually to around 610,000 barrels per day (b/d), while gas production slipped 8 per cent to roughly 78.5 million standard cubic meters/day. Covid-related constraints were partially responsible, but the pandemic has also delivered a reminder to build up the upstream sector’s resilience against future shocks. READ MORE


India VIX cools off further

Index dips over 3% to trade at 14 levels

MARKET CHECK :: Sensex hits 52,600-mark for the first time


Sector Watch :: Metal index outperforms benchmarks led by Coal India, SAIL


Volatility Alert

India VIX cools off 1.6% to trade at 14.7 levels

Cosmo Films rises 3% on new product launch by subsidiary

 Cosmo Speciality Chemicals, a subsidiary of the company, has launched a new product called Fabritizer, an after-wash laundry sanitizer for germ-free.


Ashok Leyland gains nearly 3% in morning deals


BUZZING :: Jaypee Infratech soars 4.5%

Jaypee Infratech's financial creditors on Thursday decided to put the bids of NBCC and Suraksha group to vote after both parties submitted final offers for the debt-laden company.


National Fertilisers slides over 2.5% in a firm market

The company on Thursday reported narrowing of consolidated loss at Rs 9.53 crore for March quarter 2020-21. The company had reported a loss of Rs 248.65 crore in the year-ago period, NFL said in a BSE filing.


YES Bank up 1% as Board approves fund raising

The private sector lender on Thursday received board approval for raising up to Rs 10,000 crore by issuing debt securities.


SAIL rallies over 2% on 26% YoY growth in Q4 PAT

The firm reported a 26.4 per cent YoY growth in net profit at Rs 3,444 crore for the March quarter of FY21 (Q4FY21). Earnings before interest, tax, depreciation, and amortisation (Ebitda) came in at Rs 6,473 crore.


Power Grid rises 2% on bonus share proposal

>> Board to mull Bonus Issue on June 17

Sectoral trends on the NSE :: Across-the-board buying lifts indices


Sensex Heatmap :: Only 2 counters trade in the red in early deals


Opening Bell :: Nifty hits new peak of 15,816 in early deals


Opening Bell :: Sensex hits fresh record high of 52,534.65

>> Index surpasses previous high of 52,517 touched on Feb 16, 2021


NEWS ALERT :: US to donate Pfizer vaccines to low, lower-middle income countries, says Joe Biden

Fuel price hike :: Petrol price in Mumbai crosses Rs 102/litre

IOC, BPCL & HPCL hike petrol price by 28-29 paise & diesel by 28-30 paise today.

Petrol in Delhi at Rs 95.85 & in Mumbai, Rs 102.04/Litre.

Diesel in Delhi at Rs 86.75 & in Mumbai, it’s Rs 94.15/litre

Commodity Heatmap


Top gainers and losers on the S&P BSE Sensex in Pre-open


Pre-open session :: Nifty nears 15,800


Pre-open session


Jefferies' India Financial Summit :: HDFC Bank

Key Highlights


>> HDFC Bank plansto leverage its distribution in non-urban markets and digital strengths in expandingits SME banking platform (20% of loans) where it is already among the top bankers.

>> Bank is cognisant of the asset quality risks associated with this (SME) segmentand hence will keep underwriting and collection teams tighter.

>> Management highlighted that it continues towork with the RBI to resolve the issue and at the same time build more robustplatforms. 

>> Jefferies' Outlook: We see 19% CAGR in profit over FY21-24 and maintain our Buy ratingwith a price target of Rs1,860 with the value of bank at 3.7x Mar-23E adjusted PB.Our price target for ADR is US$91, based on FX conversion of our local price targetand a 22% premium

Top stocks to keep on radar

NHPC: The company reported a nearly 80 per cent YoY jump in its consolidated net profit to Rs 464.60 crore for the March 2021 quarter. Its board approved the proposal to raise debt up to Rs 4,300 crore during the financial year 2021-22.
 
SAIL: The firm reported a 26.4 per cent YoY growth in net profit at Rs 3,444 crore for the March quarter of FY21 (Q4FY21). Earnings before interest, tax, depreciation, and amortisation (Ebitda) came in at Rs 6,473 crore.
 
YES Bank: The private sector lender on Thursday received board approval for raising up to Rs 10,000 crore by issuing debt securities. READ MORE

Sharekhan on VA Tech Wabag

Rating: Buy; Price Target: 435
 
Key Investment Arguments
 
We re-initiate coverage on Va Tech Wabag Limited (VATW) with a Buy rating and price target of Rs. 435 considering attractive valuations and a strong earnings growth outlook. 
 
Strengthened balance sheet led by robust operating and free cash flow generation allays investors concerns on future growth. 
 
Well-funded strong order book at 3.4x FY2021 consolidated revenues provides comfort on collections and execution fronts. 

Structural growth tailwinds owing to leading global positioning, Indian government’s spends on water supply, and impetus on industrial waste-water management.

'High crude linked commodity price bodes well for GAIL's earnings'

Rating: Buy; Price Target: 196
 
Key Investment Arguments
 
Q4FY2021 PAT of Rs. 1,908 crore (up 28.3% q-o-q) was 15.6% above our estimate, led by strong performance across commodity-linked businesses of petchem/LPG-LHC/ gas marketing supported by higher oil price. 
 
Q1FY2022 gas transmission volume to get impacted by lockdown in April 2021-May 2021 and petchem utilisation due to maintenance plant shut down; however, high HDPE, LPG, and spot LNG prices would keep profitability strong. 
 
Earnings growth outlook (expect a 29% PAT CAGR over FY2021-FY2023E) has improved considerably, given high profitability for petchem and LPG-LHC segments post the sharp rally in oil price to <$70/bbl. Transmission volume to grow steadily at 6-8% volume p.a.
 
Valuation of 7x its FY2023E EV/EBITDA seems attractive, given expectation of strong earning revival and potential value unlocking from monetisation of gas pipeline assets. We maintain our Buy rating on Gail with revised price target of RS. 196

Views by: Sharekhan

Eyeing recovery post unlock :: Sharekhan on Bata India

Rating: Buy; Price Target: 1905
 
Key Investment Arguments
 
Bata India’s (Bata) Q4FY2021 business recovered to ~95% of pre-COVID levels, better than a 74% revival in Q3FY2021. Due to the quarter’s seasonality, revenue declined by 4% q-o-q. 
 
Gross margins stood at 53.1% versus 58.8% in Q4FY2020 affected by an unfavourable mix as formals and fashion categories are yet to revive. OPM stood at 19.0% versus 22.4% in Q4FY2020. 
 
Bata continued investing on brand-building (appointed Kartik Aryan as brand ambassador) and network expansion (opened 10 new stores and expanded its reach in the e-commerce and omni-channels). 
 
We maintain a Buy rating on stock with a revised PT of Rs. 1,905. Stock is currently trading at 46x its FY2023E EPS and 19.8x its FY2023 EV/EBIDTA.

Results today :: A total of 57 companies are slated to post their quarterly numbers today

Bull spread strategy on Jubilant Food

Rationale:
 
-- We have seen long build-up in the Jubilant FoodWorks Futures till now during the June series where we have seen 13 per cent rise in the Open Interest with price rising by 3.5 per cent
 
-- The stock price has broken out on the daily line chart by surpassing the resistance level of 3,204 with higher volumes READ MORE

Osho Krishan of Anand Rathi is bullish on HUL, PowerGrid; here's why

BUY HINDUSTAN UNILEVER | TARGET: Rs 2,500 | STOP LOSS: Rs 2,300
 
Hindustan Unilever is placed in an upward trending channel on the weekly time frame, in which it is currently placed near the lower line; historically, this has acted as a strong support base for the stock. Also, on the daily time frame, the stock is hovering near 21 DEMA and is in the cycle of higher highs higher bottoms on a wider time frame. In addition, the counter has declared a dividend of Rs 17 for which the ex-date is June 14 and this could trigger further demand in near future too. READ MORE

Bulk deals on the BSE as on Thursday

Bulk deals on the NSE :: SI Investments buys stake in BF Utilities

Healthy FII buying supported the indices on Thursday


Rupee check

Source: Bloomberg

Oil trims gains, but heads for third weekly rise on demand recovery

Oil prices slipped on Friday but were set for their third weekly rise on expectations for a recovery in fuel demand in Europe, China and the United States as rising vaccination rates lead to an easing of pandemic curbs.
 
Brent crude futures fell 23 cents, or 0.3%, to $72.29 a barrel at 0145 GMT, reversing most of Thursday's climb to its highest close since May 2019. U.S. West Texas Intermediate (WTI) crude futures slipped 22 cents, or 0.3%, to $70.07 a barrel, after climbing 0.5% on Thursday to its highest close since October 2018. Brent is set for a gain of 0.5% this week while WTI is set to climb 0.6%.
 
(Source: Reuters)


Asia extends global stocks rally

A broad gauge of Asian shares rose on Friday as investors saw enough one-off factors in U.S. consumer price data to back the Federal Reserve's conviction that rising inflation will be transitory.
 
In morning trade in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.18%. Japan's Nikkei gave up early gains to turn 0.11% lower. Seoul's Kospi was up 0.32%, Australian shares added 0.14% and Hong Kong's Hang Seng index gained 0.53%.

Wall Street ends on a firm footing

Wall Street stocks ended higher in overnight trade, with the S&P 500 closing above its prior record high set on May 7, as economic data appeared to support the Federal Reserve's assertion that the current wave of heightened inflation will be temporary.
 
The consumer price index (CPI) data came in above consensus but a closer look showed that much of the price surge was from items such as commodities and airfares, and is therefore likely to be temporary.
 
The Dow Jones Industrial Average rose 0.06%, the S&P 500 gained 0.47% and the Nasdaq Composite added 0.78%.
 

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