Sensex ends 221 pts higher; Consumer Discretionary index hits record peak

Topics MARKET LIVE | Markets | Sensex

Stock market updates: Domestic equity indices ended a range-bound trade in the positive zone on Tuesday as positive global mood and a steady decline in Covid-19 cases in the country supported sentiment. An across-the-board buying lifted benchmarks to new lifetime highs in early deals today where the S&P BSE Sensex touched 52,869.5 levels while the Nifty50 index surpassed the 15,900-mark to quote at 15,902.

By close, the BSE barometer was at 52,773 levels, up 221 points or 0.4 per cent. The 50-share index, on the other hand, was at 15,869 levels, up 57 points or 0.36 per cent.

Indices' breadth was 1:1 where Asian Paints, Axis Bank, ICICI Bank, Britannia Industries, SBI Life, and Indian Oil Corporation ended the day as the top gainers, up between 1 per cent and 3 per cent. Divis Labs, Coal India, Hindalco, Bajaj Finserv, Sun Pharma, and Dr Reddy's Labs, meanwhile, were the top laggards, down up to 1.6 per cent.

In the broader markets, the BSE MidCap index settled the day 0.6 per cent higher amid gains in GMR Infra, Future Retail, Whirlpool of India, and Crisil. The BSE SmallCap index too gained 0.4 per cent propelled by gains in Srei Infra, Reliance Industrial Infrastructure, Insecticides, and Action Construction Equipment.

Sectorally, the Nifty Pharma, PSU Bank, and Metal indices were the losers on the NSE, down 0.8 per cent, 0.26 per cent, and 0.05 per cent, respectively. On the upside, the Nifty Media index (up 2 per cent) and the Nifty Realty index (up 1.3 per cent) were the top gainers.

Global cues
World stocks hit yet another record high on Tuesday, with European stocks poised for their longest winning streak since 2019 as investors bet likely “transitory” inflation pressures will stay the US Federal Reserve’s hand from signalling a shift in policy settings.

A majority of investors surveyed by BofA said inflation was transitory, a marked change from March, when worries about more sustained price rises had sent U.S. 10-year Treasury yields surging to nearly 1.8 per cent.

Abating worries about inflation helped US and European shares scale new highs, with the pan-regional STOXX 600 rising 0.4 per cent. In Asia, the MSCI's broadest index of Asia-Pacific shares outside Japan trading flat. Japan's Nikkei rose 1 per cent and the Australian benchmark traded up 0.93 per cent, but Chinese blue chips fell 1.1 per cent.


LIVE UPDATES

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

The market witnessed a lackluster movement and an attempt to overcome the resistance level around the Nifty 50 Index level of 15900. While a breakout above 15900 is the key factor from a short-term perspective, Anything above this level is important for the market to gain momentum, which could lead to an upside projection till 16200 levels. The momentum indicators like RSI, MACD to further strengthen in favor of a positive outlook and advise the traders to consider a breakout above 15900 as an opportunity to build fresh long position

MARKET CLOSING COMMENT :: Deepak Jasani, Head of Retail Research at HDFC Securities

Indian benchmark equity indices rose for the fourth consecutive session on June 15. The Nifty opened gap up and then remained in a narrow 46 point gap through the day. At close, the Nifty was up 57.40 points or 0.36% at 15869.30.
 
Volumes on the NSE were much below recent averages. Among sectors, Realty, Consumer Durables and FMCG were the main gainers while Healthcare and Power were the main losers.  
 
Indian markets on June 15 ignored the high inflation numbers announced the previous day. Attention and funds are being diverted to the four IPOs lined up this week. This is also reflected in lower volumes in the secondary markets. Rangebound trade at these high levels suggest hesitation on the part of traders to expand their commitments. However a positive outcome from the US Fed meet this evening could help overcome this hesitation. Nifty could remain in the 15940- 15791 band for the near term.

TECH VIEW :: Rohit Singre, Senior Technical Analyst at LKP Securities

Th Nifty index opened with a good gap-up and managed to close on a positive note at 15,869 with gains of nearly half a per cent. The index has shown sort of profit booking from its strong hurdle zone of 15,900 which will continue to act as resistance for the coming session. This is followed by next hurdle of 16000. The index has formed a good base at 15,800-15,700 zone and holding above the said levels gives strong support to overall structure.

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

Technically, the nifty is in a bullish trend from the last many trading sessions and making higher highs. In the recent session, it has breached an immediate resistance of 15835.55 and settled above it, which indicates bullish strength in the counter. On the daily chart, the index has been hovering above 200 & 100 days Simple Moving Averages. 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 comes at 15650 levels.

Technical set-up for Wednesday

The short term trend of Nifty continues to be positive with range bound action. The overall chart pattern of Nifty indicate a chances for further consolidation or minor weakness from the highs in the next 1-2 sessions. Immediate support is placed at 15700.

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

MARKET STRATEGY :: Bank stocks could be seeing early signs of rebound

Markets edged marginally higher in a range-bound session, taking cues from stable global indices. After the initial uptick, the benchmark hovered in a narrow band; however, movement on the stock-specific front kept the participants busy till the end. Finally, the Nifty index ended higher by 0.4% at 15,869 levels. 
 
Nifty has been trading in an uptrend channel on the intra-day chart and is currently hovering around the upper band of the same. We’re seeing an early sign of a rebound in the banking index which could trigger a further surge. Traders should continue their focus on the selection of stocks and avoid contrarian bets.

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

MARKET RECAP :: Market bulls dancing to global cues

Indian bourses continued its gaining streak tracking optimism from global peers, which is despite the rising inflation concerns. The global market is eagerly awaiting the two-day Fed policy meeting’s decision to see if the Central Bank would signal any change in policy. While domestic CPI jumped to 6.3% in May breaching the RBI’s comfort zone on account of higher food & energy prices, which is expected to ease due to the opening of the economy.

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

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

Bulls were firmly in control today as FMCG & Paint stocks were sought after with the broader market also displaying renewed buying interest in high-quality Midcap names across sectors. Selective themes like Infra, Paper & MFI were in action today amidst high volumes on positive news flow.

IPO Alert :: Sona Comstar issue subscribed 22% till 3:45 PM on Day 2


IPO Alert :: Shyam Metalics and Energy issue subscribed nearly 3x till 3:45 PM on Day 2


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


Broader market :: BSE MidCap index ends 0.6% higher


NSE Snapshot :: Top Nifty50 gainers of the day


Top stocks that supported the Sensex today


Sectoral trends on the NSE


Sensex Heatmap :: Index breadth remains neck and neck

Top gainers: Asian Paints, Axis Bank, ICICI Bank

Top losers: Bajaj Finserv, Dr Reddy's Labs, Titan

Rupee Closing

Rupee settles at 73.31 per US dollar vs Monday's close of 73.27/$

CLOSING BELL :: Indices end at new closing peaks

The S&P BSE Sensex closed at 52,773 levels, up 221 points or 0.4 per cent.

The 50-share index, on the other hand, was at 15,869 levels, up 57 points or 0.36 per cent.

BUZZING :: Just Dial soars over 8%


CARE Ratings soars 22% in three days on strong Q4 results

Shares of CARE Ratings hit a 52-week high of Rs 696 after they rallied 16 per cent on the BSE in intra-day trade on Tuesday. In the past three days, the scrip has surged 22 per cent after the company reported a strong set of numbers for the March quarter (Q4FY21).
 
For the fourth quarter of the financial year 2020-21 (Q4FY21), CARE Rating’s consolidated net profit rose by 69 per cent year-on-year (YoY) to Rs 26.49 crore as against Rs 15.68 crore in Q4FY21. Total income increased by 16.14 per cent YoY from Rs 73.41 crore to Rs 85.25 crore during the quarter under review. READ MORE

Retail sales decline 79% in May over pre-Covid levels in 2019: Report

Retail sales in India slipped 79 per cent in May compared to pre-COVID sales in the same month of 2019, as businesses across states were closed due to the second wave of the pandemic, as per a survey by Retailers Association of India (RAI).
 
The decline in sales was the steepest in West and North India, which witnessed an 83 per cent dip last month as compared to May 2019, RAI said in a statement. READ MORE

Emirates posts first loss in three decades as coronavirus slams travel

The state-owned company received a capital injection of 11.3 billion dirhams ($3.1 billion) from its owner, the government of Dubai. Its dnata unit tapped industry support programs and availed relief of nearly 800 million dirhams, Chairman Sheikh Ahmed Bin Saeed Al Maktoum said. READ MORE

MARCH QUARTER RESULTS :: JUBILANT FOOD

> Revenue at Rs 1026 cr vs Rs 897 cr, up 14.3% YoY
 
> PAT at Rs 104 cr vs Rs 21 cr, up 395.5% YoY
 
> EBITDA at Rs 766 cr vs Rs 877 cr, down 12.6% YoY
 
> EBITDA margin at 23.5% vs 22.6% YoY

Consumer discretionary index hits all-time high; analysts see more upside

Shares of consumer discretionary companies continued to march ahead on Tuesday with the S&P BSE Consumer Discretionary Goods & Services index hitting a fresh record high at 5,104 in intra-day trade. In comparison, the benchmark S&P BSE Sensex was up 0.54 per cent at 52,835 points.
 
In past two months, the BSE Consumer Discretionary index outperformed the market by surging 13.4 per cent, against 8.2 per cent gain in the benchmark index. Analysts believe there is still more room for an upside, but investors need to be selective. READ MORE

Inflow in Gold ETFs drops 57% in May amid strength in equities

Gold ETFs witnessed a 57 per cent decline in net inflow to Rs 288 crore in May compared to the preceding month, as investors diverted money into equity markets.
 
Despite the drop in inflow, the assets under management (AUM) of gold ETFs rose by over 6 per cent to Rs 16,625 crore at May-end, against Rs 15,629 crore at April-end, data with Association of Mutual Funds in India (Amfi) showed. READ MORE

This Reliance Group stock has zoomed 62 per cent in four days

Shares of Reliance Industrial Infrastructure continued their upward movement, hitting a new high of Rs 736.60 after they rallied 19 per cent, on the BSE in intra-day trade on Tuesday on the back of heavy volumes. The stock of the construction & engineering company was trading higher for the fourth straight day, having zoomed 62 per cent during the period. READ MORE

Inflow in Gold ETFs drops 57% in May amid strength in equities

Gold ETFs witnessed a 57 per cent decline in net inflow to Rs 288 crore in May compared to the preceding month, as investors diverted money into equity markets. Despite the drop in inflow, the assets under management (AUM) of gold ETFs rose by over 6 per cent to Rs 16,625 crore at May-end, against Rs 15,629 crore at April-end, data with Association of Mutual Funds in India (Amfi) showed. READ MORE

Stocks that hit 52-week high on the BSE

Company PRICE(rs) 52 WK HIGH CHG(%)
ACC 2039.85 2065.85 -0.04
Ambuja Cements 341.30 344.30 0.31
APL Apollo Tubes 1507.05 1517.65 3.33
Asian Paints 3024.60 3032.00 2.59
Avenue Super. 3362.10 3392.95 2.74
» More on 52 Week High

European markets check

(Source: Reuters)


Mobile banking app issue now resolved, says HDFC Bank

Q4 Results :: Whirlpool

> PAT at Rs 130 cr vs Rs 92.3 cr YoY
 
> Revenue at Rs 1779 cr vs Rs 1,353 cr YoY
 
> Company board recommends dividend of Rs 5 per share

Indian pharma companies' sales to rise after resilience in FY21: Fitch

Indian pharmaceutical companies' sales will grow robustly in the financial year ending March 2022 (FY22) as sales normalise in categories affected by the pandemic in previous year, Fitch Ratings has said.
 
Most pharma companies reported resilient operating performance in FY21, benefitting from gradual stabilisation after 1Q FY21, geographical diversification and sales of pandemic-related drugs. READ MORE

IPO Alert :: Sona Comstar issue subscribed 18% till 1:20 PM on Day 2


IPO Alert :: Shyam Metalics and Energy issue subscribed 1.9x till 1 PM on Day 2


NEWS ALERT

Q&A | Buying in value stocks & sectors will be back soon: Satish Menon of Geojit

There is enough scope for both types of intermediaries in this market – the discount model as well as full service model. The impact on margins, he says, would be primarily on the day trading as well as Future & Options (F&O) business. READ FULL INTERVIEW HERE

What investors are watching from the Fed: taper talk and inflation

Investors will be scrutinizing the Federal Reserve's comments at the close of its policy meeting on Wednesday for insight on whether the central bank has begun discussing tapering bond purchases and if policymakers are concerned about rising inflation. READ MORE


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

Led by buying in some heavyweight stocks in early trade, Indian equity benchmarks stayed positive. Investors took a note of a SBI report that the fiscal condition of the Centre and the states will be substantially better than anticipated for FY22 if there is no third wave of Covid-19 epidemic, and the states may garner Rs 60,000 crore higher in tax receipts at Rs 8.27 lakh crore this fiscal year than they had projected. The S&P 500 and the Dow fell on June 14, a day after the S&P 500 set a new closing high, as investors awaited the Federal Reserve's meeting this week for clues on the central bank's inflation outlook and the future of asset purchases. Asian markets were trading in green following the overall positive sentiments in the market.
 
The Indian market has been positive in the first half and has made an attempt to sustain above the level of 15,850.15,900 will act as a resistance in the short term. If the market breaches the level of 15,900, we can see a new rally with an upside potential till the level of 16,150-16,200. 

Sebi imposes Rs 15 cr penalty on FT MF chief executive, fund managers

The Securities and Exchange Board of India (Sebi) on Monday imposed a cumulative penalty of over Rs 15 crore on top officials of Franklin Templeton Mutual Fund (FT MF) and its trustee for violation of Sebi regulations while managing the six schemes wound up last year.
 
The regulator imposed Rs 3 crore penalty on FT Trustees Services and Rs 2 crore each on chief executive officer (CEO) Sanjay Sapre and chief investment officer (CIO) Santosh Kamath. READ MORE

RBI to focus on growth even as inflation breaches tolerance band: Report

The Reserve Bank of India is unlikely to react yet to multi-month high retail prices as economic recovery remains its prime focus amid the deadly second wave of the pandemic, according to two senior sources aware of the central bank's thinking. The annual retail inflation rate rose 6.30% year-on-year in May, up from 4.29% in April and sharply above analysts' estimate of 5.30%. The wholesale price inflation rate rose 12.94%, its highest in at least two decades. READ MORE


Top gainers on the BSE at this hour

Company PRICE(rs) CHG(%)
PTC India 108.20 10.07
Future Retail 72.65 9.99
Rain Industries 198.00 8.58
Gujarat Gas 649.50 8.02
Future Consumer 10.82 7.98
» More on Top Gainers

Adani Group in focus :: Adani Group companies have same credit rating as the Sovereign, says Group CFO

>> Can't speak on the behalf of FPIs in question

>> There is no action against Adani. 

>> Valuation and analysts' coverage are unrelated

>> Once Adani Green starts producing 23 GW of Power, coverage will start

>> Had 60-70 investors on our concalls this year

Source: Jugeshinder Singh, Group CFO to CNBC TV18

Adani Group in focus :: Malicious attempt to push a false story, says Group CFO

>> Have to work in the best interest of minority shareholders

>> Matter under legal advice


Adani Group in focus :: Sought clarification regulator and RTA, says Jugeshinder Singh, Group CFO

>> Cannot comment on statements given by thse FPIs

>> All these FPIs in question are trading actively

>> RTA confirmed to us that these accounts are not frozen

Source: Singh to CNBC TV18

NEWS ALERT :: Capacite Infraprojects wins order worth Rs 384.66 cr


Corporate Action :: Marksans Pharma Board approves issue of convertible warrants on preferential basis


NEWS ALERT | Spandana Sphoorty approves issuing NCDs up to Rs 675 cr on private placement basis


DLF may underperform on valuations, commercial portfolio concerns

Despite a better than expected performance in the March quarter, the stock of India’s largest listed developer shed over 3.5 per cent on Monday. While valuations, after a 21 per cent rise since the start of May, have factored in gains on the residential portfolio, concerns on the commercial portfolio were an additional cause for the correction.
 
DLF Cyber City Developers or DCCDL, which is DLF’s rental arm and houses its office and retail portfolio, saw occupancies dip to 89 per cent as compared to 91 per cent in the December quarter. READ MORE

TV18 Broadcast, SJVN: Two-digit stocks that can jump 20% in next two months

Within the mid-and-smallcap universe, a number of two-digit stocks have done well. Here are trading strategies for a few such counters that look bullish on the charts and can appreciate at least 20 per cent from here on in the next two months, provided the overall market momentum stays strong. READ MORE


India Inc earns 72% of revenue from the domestic market: Morgan Stanley

72 per cent of the revenue of Indian firms (India Inc) is derived from the domestic / home market – the sixth highest in percentage terms in the emerging market (EM) and the Asian region, said a recent report by Morgan Stanley. The balance, according to the report titled ‘Global Exposure Guide 2021’ co-authored by analysts led by Jonathan F Garner, their chief Asia and emerging market strategist, is split between the developed markets (DMs) and other EMs. The report is based on an analysis of 3,300 companies globally that have revenue exposure in 17 different regions. READ MORE

Anupam Rasayan clears debt worth Rs 530 cr from recent IPO proceeds

Chemicals maker Anupam Rasayan has repaid debt worth Rs 530 crore from the net proceeds of its recently completed initial public offering and will clear an additional Rs 30 crore debt by next quarter ending September, 2021. The company had raised Rs 760 crore through its Initial Public Offering (IPO). Speaking to PTI, Anupam Rasayan Chief Financial Officer (CFO) and spokesperson Afzal Malkani said the company's total debt is about Rs 840 crore. READ MORE

Sagar Cements zooms 20% on stock split plan; stock nears record high

"The board of directors of the Company is scheduled to meet on July 01, 2021, inter-alia, to consider a proposal to sub-divide (split) the face value of the equity shares of the Company from Rs 10 each into an appropriate amount,” Sagar Cements said in an exchange filing. READ MORE

Adani Group stocks trade mixed following clarification from NSDL

Shares of Adani Group companies traded on a sombre note for the second straight day on Tuesday even after National Securities Depository Ltd (NSDL) clarified that the accounts of three foreign funds - holding nearly Rs 43,000 crore worth of Adani group shares - are 'active' and not frozen. READ MORE

Most active stocks by volume

Company PRICE(rs) CHG(%) VOLUME
Vodafone Idea 9.78 1.24 10496254
Suzlon Energy 7.24 2.84 5818003
Future Consumer 10.84 8.18 5156667
B H E L 70.25 4.31 4209910
Wipro 561.85 0.04 2665762
» More on Most Active Volume

Newgen Software rallies 12%, hits new high after block deals

Shares of Newgen Software Technologies soared 12 per cent, hitting a new high of Rs 511.55, on the BSE in intra-day trade on Tuesday after more than 10 per cent of the company's equity changed hands on the counter. The stock of the information technology (IT) consulting & software company surpassed its previous high of Rs 464, touched on Monday. READ MORE

MARKET CHECK :: Sensex at day's high


Deepak Fertilisers zooms 52% in a week; stock nears record high

Shares of Deepak Fertilisers & Petrochemicals Corporation continued their upward movement and hit a fresh 52-week high of Rs 474.65 after rallying 6 per cent on the BSE in intra-day trade on Tuesday. The stock of the commodity chemicals company was trading higher for the seventh straight day. In the past one week, it has zoomed 52 per cent, as compared to 0.81 per cent rise in the S&P BSE Sensex. READ MORE


Bond Market Alert

> 10-year benchmark yield at 6.04% vs previous close of 6%

> 10-year bond yield extends rise to highest level since April 30

Rupee opening

Rupee opens at 73.21 per US dollar vs Monday's close of 73.27/$

Adani stocks among most expensive on bourses: Check details here

Adani group companies remain among the most expensive stocks on the bourses. On Friday, the six listed stocks ended with a price-to-earnings (P/E) multiple of 102x on average, more than three times the benchmark BSE Sensex’s P/E multiple of 33x. READ MORE


Limited coverage: Few analysts track Adani group companies, shows data

The coverage of Adani group among analysts is currently lower than that of other industrial groups. An analysis of available Bloomberg data on coverage shows that it is a single-digit number for every Adani group company except for Adani Ports, which has 26 analysts covering it. READ MORE


Trading Strategy :: Remain invested in IT, pharma & metal stocks

Rising inflation is becoming a major concern for the market. CPI inflation print which came 6.3% for May indicates that inflation may overshoot RBI's target unless reversed in June & July. Rising inflation can constrain RBI's pro-growth accommodative monetary policy.
 
INR depreciation has become another tailwind for the performing IT index which has outperformed Nifty by 35 % during the last 12 months. It makes sense to remain invested in IT, pharma & metal stocks which are unlikely to be impacted by negative macros like rising inflation.
 
Globally markets will be keenly watching the Fed meeting outcome on Wednesday, particularly clues regarding possible timing of tapering.US 10-year yield hovering around a 3-month low of 1.48% indicate that the market doesn't expect any major market-moving announcement from the Fed.

Views by: Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

Ashiana Housing gains on launching new residential project

The company has entered into development agreement for developing a residential project in Pune on revenue sharing basis.


Satin Creditcare zooms nearly 9% post March quarter results

Microfinance institution Satin Creditcare Network Limited (SCNL) on Monday reported a profit after tax of Rs 38 crore in the quarter ended on March 31, 2021, against Rs 13 crore in the year-ago period.


PNB Housing extends decline

Reserve Bank of India as well as Sebi will look into various regulatory issues related to the proposed Rs 4,000 crore-investment by US-based private equity firm Carlyle and others in PNB Housing Finance, a PTI report said.


Jaiprakash Power Ventures hits 52-week high as Co turns profitable in Q4

The company has reported consolidated profit at Rs 215.32 crore in Q4FY21 against loss of Rs 70.91 crore in Q4FY20. Revenue increased to Rs 956.87 crore from Rs 698.47 crore (YoY).


JB Chemicals rises around 2% on 2x jump in Q4 PAT

The drug firm on Monday reported a two-fold jump in consolidated net profit to Rs 100.81 crore for the quarter ended March 2021 on account of robust sales.


SBI Card gains on raising Rs 500 crore

SBI Cards and Payment Services (SBI Card) on Monday said it has raised Rs 500 crore by issuing bonds.


Coal India trades mildly in the red post Q4 nos

The company reported a marginal 1.1 per cent YoY decline in its consolidated profit at Rs 4,586.78 crore for the quarter ended March 2021 on the back of lower sales.


Adani Group stocks mixed post Mondays clarification

National Securities Depository Ltd (NSDL) has clarified that the status of demat accounts of three foreign portfolio investors (FPI) accounts - Albula Investment Fund, Cresta Fund and APMS Investment Fund - are in ‘active’ status in NSDL system.


Broader market :: S&P BSE SmallCap adds 0.6%


Broader market :: BSE MidCap index up 0.4%; Adani Tranmission, Adani Power top losers


Sectoral trends on the NSE


Sensex Heatmap


Opening Bell :: Nifty claims new peak of 15,876.3


Opening Bell :: Sensex hits new lifetime high of 52,768.62


Commodity prices in early deals


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


Pre-open session


Pre-open session


LARGE TRADE :: 7.4 million shares change hands on Newgen Technologies


BROKERAGE VIEW :: MOFSL on J K Cement

CMP: Rs 2,811 | TP: Rs 3,300 | Reco: Buy

We expect JKCE to deliver above-industry volume CAGR of 12% over FY21-23E on account of its expansion in North India. The announced expansion at Panna should continue to drive market share gains in the long term as well as improve its regional mix in favor of North/Central India. It should help the company move down the cost curve by lowering power and fuel and other costs.

Our TP of INR3,300/share is based on 14x FY23E EV/EBITDA for the White Cement business and 12x for the Grey Cement business. Maintain Buy

BROKERAGE VIEW :: MOFSL on ICICI Prudential Life

CMP: Rs 588 | TP: Rs 675 | Reco: Buy

The recent strategy changes made by IPRULIFE to its product mix, with a higher focus towards Non-Linked segments, backed by strengthened distribution, are driving healthy premium growth. The share of banca (excluding ICICIBC) increased to 11% v/s 5% in FY18. Persistency rate has improved, reflecting strength in business quality. We expect trends to continue, further aided by a higher mix of Non-Linked Savings/Protection business, both of which have a higher persistency rate. Profitability can witness some pressure, led by elevated provisions towards rising COVID-19 death claims. We estimate IPRULIFE to deliver ~31% CAGR in new business APE and VNB growth at 29% CAGR over FY21-23E, led by stable margin and controlled opex. We maintain our Buy rating with a TP of INR675/share (2.4x FY23E EV).

BROKERAGE VIEW :: Emkay Global maintains 'Hold' on Edelweiss Financials

Target price: Rs 72

Edelweiss Financial (EDEL) continued to run down its loan book in Q4, reporting ~22% YoY and ~8.7% QoQ decline in AUM to Rs149.1bn. However, the pace of rundown has continued to reduce. Overall wholesale book declined to Rs114.1bn from Rs129.7bn last year and management intends to reduce it to half by FY23E.

ECL Finance Ltd and Edelweiss Housing Finance Ltd reported collection efficiency of 94% and 99%, respectively, in March 2021. However, we remain cautious on the credit business, given the second Covid wave. EDEL also expects margins to rebound, backed by improved liability profile, well-positioned ALM and a strengthening balance sheet.

With the second wave of Covid-19, FY22 is off to an uncertain start, and management has indicated its focus on strengthening balance sheet and liquidity. The company also intends to continue the EWM demerger process (probable listing by Q3FY23), which will be a key value unlocking event for shareholders.

We value the company on SOTP basis and expect decline in AUM to continue with further resolution in wholesale book. Franchise business to witness gradual growth and we await for insurance business to turn profitable. We maintain Hold and remain UW in NBFC-EAP with revised TP to Rs72 (Rs66 previously), corresponding to ~1x FY23E P/Adj Book

Stocks to watch: Jubilant Food, Coal India, JSW Ispat, SBI Card, NHPC

Coal India: The company reported a marginal 1.1 per cent YoY decline in its consolidated profit at Rs 4,586.78 crore for the quarter ended March 2021 on the back of lower sales.
 
SBI Card: SBI Cards and Payment Services (SBI Card) on Monday said it has raised Rs 500 crore by issuing bonds.
 
JB Chemicals & Pharmaceuticals: The drug firm on Monday reported a two-fold jump in consolidated net profit to Rs 100.81 crore for the quarter ended March 2021 on account of robust sales. READ MORE


IPO Action :: Which is the best IPO to apply for listing gains?

IPO market would remain heated in the ongoing week as two IPO open on 14th June 2021, and two opening on 16th June 2021. These IPOs are coming when the broader markets are at all-time highs along with heavy retail participation.
 
Overall total IPO size of 4 IPOs is Rs 9,123 crores of which Sona BLW’s IPO size itself is of Rs 5,550 crores.
 
If we look at different market news about the grey market premium, we have seen lots of ups & downs in the grey market premium of various IPOs.
 
As per the latest market grey market news, Shyam Metalics’ GMP suggests that it would have the best listing gains among all four IPOs. It is expected that the Shyam Metalics can open with a premium of 40%-50% as per the grey market news. Dodla Dairy quoting at premium of 35%-40% and other two IPOs are quoting at very nominal grey market premium. As unblocking of funds for Shyam Metalics and Sona BLW will happen on 21st June and last date for Dodla dairy and KIMS will be on 18th June, investors cannot use the same amount for applying the IPO. 
 
Views by: Yash Gupta,Equity Research Associate at Angel Broking

SGX Nifty trades flat

>> At 8:51 AM, the index was unchanged at 15,836 levels.

Results today :: A total of 45 companies are slated to post their quarterly numbers today

Oil rises as threat of immediate Iran supply recedes

Oil prices rose on Tuesday, with Brent gaining for a fourth consecutive session, as the prospect of extra supply coming to the market soon from Iran faded with talks dragging on over the United States rejoining a nuclear agreement with Tehran.
 
Brent crude was up by 43 cents, or 0.6%, at $73.29 a barrel, having risen 0.2% on Monday. U.S. oil gained 41 cents, or 0.6%, to $71.29 a barrel, having slipped 3 cents in the previous session.


Asia stocks mixed

Asian stocks traded mixed Tuesday after their U.S. peers closed at a record and a bond rally stalled ahead of a key Federal Reserve meeting. Japanese shares gained, while Australian stocks outperformed after a holiday. Benchmarks in China and Hong Kong fell, as they too reopened after a break, amid a slide in metals prices led by copper.
 
- Topix index rose 0.5%
- Australia’s S&P/ASX 200 Index rose 0.9%
- South Korea’s Kospi index was little changed
- Hang Seng Index fell 1.1%
- Shanghai Composite Index fell 0.8%
- Euro Stoxx 50 futures rose 0.3%

(Text Source: Bloomberg)

US MARKET UPDATE :: S&P 500, Nasdaq hit record closing peaks

In the overnight session, the S&P 500 and Nasdaq eked out record high finishes, despite most traders being focused on this week's Federal Reserve meeting and not on adding to existing positions. Investors are seeking new cues from the central bank on its inflation outlook after recent data indicated the U.S. economy is regaining momentum but not overheating.
 
The Dow Jones Industrial Average fell 0.25%, the S&P 500 gained 0.18% and the Nasdaq Composite added 0.74%.

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