RIL, HUL, Airtel help indices log V-shaped recovery; Sensex ends 21 pts up

Topics MARKET LIVE | Markets | BSE Sensex

Stock market updates: Benchmark equity indices slumped over 1 per cent in Friday's intra-day session but made a sharp V-shaped recovery to end the day little changed. Financials and metals exerted pressure on the bourses, even as gains in Reliance Industries, FMCG and select private bank stocks tried to limit the losses.

The S&P BSE Sensex fell 722 points intra-day but recovered to close 21 points, or 0.04 per cent, higher at 52,344 levels. The broader Nifty50 index, meanwhile, bounced back from the day's low of 15,451 to end at 15,683 levels, down 8 points or 0.05 per cent.

The correction was deeper in the broader markets where the BSE MidCap and SmallCap indices closed 0.70 per cent and 0.89 per cent down, respectively.

Overall, the market breadth was heavily skewed towards bears with the Advance to Decline ratio standing at 1:2. ONGC, Coal India, Power Grid, JSW Steel, UPL, NTPC, M&M, SBI, and Nestle India were the top laggards among the large-cap stocks while Mahanagar Gas, Ashok Leyland, SAIL, Canara Bank, Max Financial Services, Graphite India, HEG, Hindustan Copper, Affle India, and Wockhardt Pharma cracked in the mid-, and small-cap segments.

Sectorally, the Nifty PSU Bank declined nearly 2 per cent while the Nifty Auto, Metal, and Realty indices slipped up to 1 per cent each. On the upside, the Nifty FMCG index ended 0.29 per cent higher.

Global markets
Stocks were stranded just below record highs on Friday, with investors left looking for direction after digesting the US Federal Reserve’s more hawkish stance.

In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan was flat after falling for four sessions. Chinese blue-chip A shares were also little changed, along with Japan’s Nikkei.

In Europe, a slide in bank and energy stocks hit shares, with a hawkish policy outlook from the US Federal Reserve also casting a dampener. The pan-European STOXX 600 index was down 0.2 per cent while Germany's DAX index fell 0.3 per cent.


LIVE UPDATES

TECH VIEW :: Nagaraj Shetti, Technical Research Analyst at HDFC Securities

The short term trend of Nifty is very volatile. The short term downward correction seems to have completed and the Friday's low of 15450 could be an important support as of now. This swing low is expected to be a new higher bottom formation of larger degree, post confirmation. Hence, Nifty sustaining above 15700 levels by next week is likely to open a way for another new all-time highs-above 15901.
 
 

MARKET CLOSING COMMENT :: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Sec

The week turned out to be volatile for the markets, and benchmark Nifty/Sensex hit the 15900 /52800 mark for the first time and also registered fresh all time highs of 15901.60/ 52869.51. Among sectors, despite tepid market conditions, strong buying was seen in FMCG and IT stocks, whereas sustained selling pressure saw the Metal index shed over 6 percent.

Technically, post the strong uptrend rally, the Nifty/Sensex has formed Hammer candlestick pattern which clearly indicates indecisiveness between bulls and bears. However, the medium term texture of the benchmark indices is still bullish and likely to continue in the short run. We are of the view that post strong uptrend rally the market is hovering in the range of 15450 to 15900/ 51900-52850 levels.

The texture of the chart suggests 15400/51800 should be the sacrosanct level for the bulls and as long as its trading above the same, uptrend is likely to continue up to 15800-15900/52600-52850 levels. Further upside may also continue which could lift the index till 16050-16130/ 53100-53300. On the flip side, below 15400/51800, uptrend would be vulnerable. On the sector-specific front, Capital Goods, infrastructure, and Telecom stocks are likely to outperform in the near future.

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

Nifty halted a four-week winning streak as it ended the week 0.73% lower. Panic selling has been absorbed well so far in the markets and local investors have taken these sell-offs as an opportunity to add to their positions. Absence of a sharp selloff in global markets is helping keep sentiments steady here. Follow through buying however may be selective and index gains from hereon may be relatively slow. On the upside the Nifty could face resistance at  15750 while 15430 could provide support on downmoves.  

INVESTMENT STRATEGY :: Should you buy entertainment, aviation, hospitality stocks?

Off late, worst-hit sectors such as entertainment, aviation, malls and hospitality & leisure have remained in focus on talks around loosening of restrictions in some states. We suggest investors to maintain a safe distance from these stocks rising on irrational exuberance. It would be prudent for investors to ride the bull wave in fundamental resilient companies only and avoid temptation in fancy fast moving stocks.

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



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

>> The Nifty index has formed a pin bar candle pattern on daily chart which suggests every dip has been used by bulls to enter the market at lower levels.

>> As it managed to close above 15,600, its structure looks positive.

>> 15,750-15,820 will be next hurdle zones on the higher side. Going-forward, fresh move towards 16,000-mark will be possible if the index sustains above 15,820

TECH VIEW :: Nifty has an immediate support at 15430 levels

The Nifty index has formed a Hammer candlestick pattern in the recent trade on the daily chart, which indicates a further upward move in the counter. Moreover, the index has also tested good support at its prior level of 15431, which suggests immediate support for the near term. In addition, on an hourly chart, the index has turned upward from the oversold zones, which point out positive moves for the upcoming session. At present, Nifty has an immediate support at 15430 levels, whereas 15900 may act as a resistance zone.

Views by: Sumeet Bagadia, Executive Director at Choice Broking

MARKET STRATEGY :: What will drive the indices next week?

With no major event, global cues will continue to dictate the market trend. On the domestic front, the progress of the monsoon and updates on the vaccination drive will be closely watched. Indications are in the favor of further consolidation in the index but the bias would remain on the positive side till Nifty holds above 15,400. Meanwhile, participants should maintain their focus on the selection of stocks and use dips to gradually accumulate the fundamentally sound counters.

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

MARKET RECAP :: Vinod Nair, Head of Research at Geojit Financial Services

The market continued to be in the consolidation phase witnessing broad-based selling, taking cues from the Fed policy and mixed global markets.  US bond yields have cooled off from its high as global markets seem to have digested the latest Fed comments. China’s plan to sell metal reserves to check recent price hikes has pulled down the sector's sentiments. The market is likely to continue in the consolidation phase for a short while, which can be an opportunity for investors to buy on dips.

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

Markets remained weak in morning trade amidst concerns regarding supply of paper from primary markets, corporates, OFS and other issuances at a time when the economy is not yet out of the woods. Metals led the fall today but markets recovered lost ground in afternoon trade as we saw buying emerge in Consumer names as well as Insurers.

IPO Alert :: Dodla Dairy issue subscribed over 45x till 4:00 PM on Day 3


IPO Action :: KIMS issue subscribed nearly 4x on final day


Markets this week :: Top Nifty losers

>> Adani Ports: 17.31%

>> Coal India: 10%

>> JSW Steel: 8.3%

>> Tata Steel: 5.7%

>> Hindalco: 5.5%

Markets this week :: Top Nifty gainers

>> Infosys: 4 per cent

>> Tata Consumer Products: 3.15%

>> Asian Paints: 3.08%

>> HUL: 3 per cent

>> Britannia: 1.7%

Markets this week :: Indices snap winning run

>> Sensex, Nifty & Midcap index snap 4-week gaining streak.

>> Nifty Bank index slips for second straight week, down nearly 1 per cent
 
>> Nifty falls 0.7 per cent; Sensex 0.2 per cent; Midcap index 3 per cent.

Sector Watch :: FMCGs rally in a volatile market; HUL up 3%


Sector Watch :: PSU Banks end as top laggards


BSE Snapshot :: Market breadth favours declines


BSE SmallCap index slips 0.90%


BSE MidCap index ends 0.7% down; Adani Enterprises jumps nearly 9%


Sectoral trends on the NSE


Sensex Heatmap :: HUL, Bajaj Auto, Bharat Airtel gain up to 3%


Rupee Closing

Rupee ends stronger at 73.86 per US dollar vs Thursday's close of 74.08/$

CLOSING BELL :: Indices make V-shaped recovery

The S&P BSE Sensex fell 722 points intra-day but recovered to close 21 points, or 0.04 per cent, higher at 52,344 levels. The broader Nifty50 index, meanwhile, bounced back from the day's low of 15,451 to end at 15,683 levels, down 8 points or 0.05 per cent.

MARKET CHECK :: Indices back in the green


UK opens up Covid-19 vaccines to all adults in final push' for protection

The UK's health officials on Friday opened up the country's COVID-19 vaccination programme to all adults, in what has been dubbed as the final push to offer protection against the deadly virus.
 
The National Health Service (NHS) said everyone aged 18 and over is being urged to arrange a jab if they have not had one as it begins sending around 1.5 million texts to people aged 18-20. READ MORE

RInfra crosses Rs 100 mark after a two-year gap, up 221% in two months

Shares of Anil Dhirubhai Ambani Group (ADAG) company Reliance Infrastructure (RInfra) hit an over two-year high of Rs 105.90, up 5 per cent on the BSE in intra-day trade on Friday. The stock of the electric utility company was quoting at its highest level since May 30, 2019, and crossed the Rs 100-mark after a gap of over two years. READ MORE

Recovery from intra-day lows in today's session

COMPANY DAY'S LOW(RS) DAY'S HIGH(RS) LATEST(RS) RISE(%)
Dishman Carbogen 161.90 208.00 198.80 22.79
TCNS Clothing Co 544.00 651.60 632.00 16.18
Future Consumer 8.90 10.14 10.12 13.71
Vodafone Idea 9.05 10.10 10.06 11.16
CLICK HERE FOR THE FULL LIST

MARKET STATS :: Advance-decline ratio at 1:2 on the BSE


MARKET UPDATE :: Sensex recovers from day's low, down only 80 points


India Pesticides' Rs 800-cr initial public offering to open on Jun 23

Agrochemical company India Pesticides on Friday said it has fixed a price band of Rs 290-296 a share for its Rs 800-crore initial share sale.
 
The three-day initial public offer (IPO) will open on June 23 and conclude on June 25. The bidding for anchor investors will open on June 22, according to the company. READ MORE

Some commodities have now wiped out all of their 2021 rally: Here's why

For all the talk of a commodities boom, some markets have now wiped out gains for the year and several more are close to doing so. Soybean futures have erased their 2021 advance, sliding more than 20% from an eight-year high reached in May, while corn and wheat have also tumbled. The Bloomberg Grains Spot Subindex slid the most since 2009 on Thursday, before edging higher on Friday as markets recovered some losses. Other commodities that have seen their big rallies evaporate include platinum, while once-surging nickel, sugar and even lumber have faltered. READ MORE

Photo: Bloomberg

Deepak Fertilisers, Godawari Power dip 5% after surging up to 54% in 9 days

With effect from today, on surveillance measures, these stocks are trading under ‘T’ group on the BSE and ‘BE’ segment on the National Stock Exchange (NSE). Shares falling in the Trade-to-Trade or T-segment are traded in BE series and no intraday is allowed. This means trades can only be settled by accepting or giving the delivery of shares. READ MORE

NEWS ALERT :: Aster DM likely to have partnered with Dr Reddy's Labs for Sputnik V


European markets check

(Source: Reuters)


SECTOR WATCH:: Buying emerges in FMCG stocks


Analysts expect Aramco deal update, ground-breaking products in RIL AGM

The upcoming annual general meeting of Reliance Industries (RIL) will be a keenly watched event, according to analysts, where the company to spell out its plans for the oil-to-chemical (O2C) telecom, digital and retailing verticals. “Over the last year, new investors have joined RIL’s digital and retail business at subsidiary level and RIL has formed new partnerships with global players like Google, Facebook, Microsoft, QUALCOMM etc. Investors now expect RIL to give direction to these businesses and announce ground breaking products,” wrote Thomas C. Hilboldt, head of resources & energy research for Asia Pacific at HSBC. READ MORE
 

KIMS IPO sails through on Day 3


NEWS ALERT :: Paytm likely to hold EGM on July 12

TV reports suggest:

>> Co tells shareholders, it looks to raise Rs 12,000 cr through fresh issue of shares

>> Co also looks to declassify Vijay Shekhar as promoter of the company

Sensex, Nifty: Don't worry about the fall; medium-term trend is intact

S&P BSE SENSEX
 
Likely target: 52,700 and 53,000 (after a close above 52,300)
 
Upside potential: 0.76% and 1.34%
 
The overall trend on the index is bullish as long as the support of 51,000 is held firmly. The recent move may show signals of distribution. However, the underneath trend is intact with immediate support coming at 51,500 and 51,300 levels. Going forward, if the index manages to sustain above 52,300 levels, the upside bias may regain positive momentum, as per the daily chart. The trend may further lead to 52,700 and 53,000 levels. READ MORE

NEWS ALERT :: No property tax hike in Mumbai till Covid situation persists

Capex pace, receivables to drive ratings of Indian renewable holdcos: Fitch

Capex intensity and the pace of receivables collection from distribution companies will dictate ratings trajectory for Greenko Energy Holdings and ReNew Power, Fitch Ratings has said in a new report. "We expect the operating portfolios of ReNew and Greenko to diverge in terms of scale, offtake and resource mix over the next two years as their approach to growth varies," it said. READ MORE


Stocks that hit 52-week high on BSE in an otherwise subdued session today

Company PRICE(rs) 52 WK HIGH CHG(%)
Coforge 3951.65 4045.00 -0.70
Cyient 833.30 886.00 -2.75
Guj.St.Petronet 323.35 327.90 0.78
Gujarat Fluoroch 1171.00 1240.00 1.61
ICICI Pru Life 585.65 596.00 -0.64
» More on 52 Week High

Minda Industries raises Rs 50 cr via issuance of commercial papers

Auto component maker Minda Industries on Friday said it has raised Rs 50 crore through issuance of commercial papers. "Minda Industries has issued the commercial paper of Rs 50 crore with allotment date June 17, 2021, and due for maturity on August 11, 2021," the company said in a regulatory filing. Minda Industries said this is in line with the management's efforts to bring down the finance cost. READ MORE

Hindustan Unilever trades higher for 4th straight day, nears 52-week high

Shares of Hindustan Unilever (HUL) rose nearly 2 per cent to Rs 2,457.90 on the BSE in intra-day trade on Friday, in an otherwise weak market, on a positive outlook. The stock of the fast-moving consumer goods (FMCG) company was trading close to its 52-week high level of Rs 2,504.30, touched on April 13, 2021. It was trading higher for the fourth straight days. In comparison, the S&P BSE Sensex was down 0.66 per cent at 51,994 points at 12:35 pm. READ MORE

Returned Rs 17,777 cr to investors of shuttered schemes: Franklin Templeton

Franklin Templeton Mutual Fund (MF) on Thursday said it has returned Rs 17,777 crore to unit holders of six shuttered debt schemes till June 15. This amounts to 71 per cent of assets under management (AUM) as on April 23, 2020, when the fund house shut its six debt mutual fund schemes citing redemption pressures and lack of liquidity in the bond market. READ MORE
 

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

In early sessions, Indian equities indexes lost over a percent due to selling in front-line counters. Lockdowns implemented by states in April and May to prevent the second wave of the fatal COVID-19 epidemic are likely to have caused the economy to drop by 12% in the June quarter, compared to a 23.9 percent contraction in the previous quarter, according to a private analysis. Traders also noted the Reserve Bank's assessment, which stated that the disastrous second wave of the coronavirus epidemic in April-May cost the country Rs 2 lakh crore in terms of output. On Thursday, U.S. technology stocks rose on expectations of a quick economic recovery, though the S&P 500 remained down following the Federal Reserve's surprisingly hawkish stance on monetary policy. As investors digested comments from the US Federal Reserve anticipating interest rate hikes in 2023, Asian markets were trading in the negative territory.
 
The market opened with a small gain but soon lost all the gains and breached the important support level of 15650 which led the market to slip further and took support near the level of 15480-15500. Technical factors indicate that if the market closes below the level of 15650 we can witness a sideways movement in the following trading days. 

Gautam Adani loses $9 bn in three days in worst wealth rout

The 58-year-old tycoon lost more money this week than anyone else in the world, with his personal fortune tumbling by about $9 billion to $67.6 billion, according to the Bloomberg Billionaires Index based on Wednesday closing prices. Just days ago, he was closing the gap with Mukesh Ambani as Asia’s richest man. Adani Group stocks continued to fall on Thursday. READ MORE

Tips Industries locked in 5% upper circuit for 4th straight day

Shares of Tips Industries (TIL) were locked in 5 per cent upper circuit for the fourth straight day at Rs 1,124.80 on the BSE on Friday in an otherwise weak market after the company reported robust set of numbers for the March quarter (Q4FY21). The stock of the movies & entertainment company was trading at its all time high level. READ MORE


Laurus Labs, Alkyl Amines: More steam left after 1,000% gain from 2020 low?

Stock market investors have seen their wealth grow multi-fold over the past one year, after the markets began recovering from March 2020 crash. At the headline level, the S&P BSE Sensex index has doubled since the low hit on March 23, 2020 and it claimed a new all-time high of 52,859 in June, 2021.
 
Individually, certain stocks, including Tanla Platforms, Adani Total Gas, Adani Enterprises, Birlasoft, and Laurus Labs, have given returns between 700 per cent to 1,900 per cent during the period amid broad-based rally and positive news flow. READ MORE

Forex has helped avert a currency run, but continuous inflow has its risks

From a low of $275 billion in September 2013, when the country had a run on its currency, India’s foreign exchange reserves have more than doubled in the past eight years to $605 billion. Only three countries in the world have substantially higher forex reserves than India – China, Japan, Switzerland. As on June 4, Russia’s and India’s reserves were at almost the same level; these could swing either way in the coming weeks and months. READ MORE 


BOJ plans to launch new scheme on climate change, keeps policy steady

The Bank of Japan said on Friday it will launch a new scheme to encourage financial institutions to boost lending and investment for fighting climate change, in a surprise move underscoring the growing attention central banks are putting on the topic. The BOJ said it expects to launch the scheme by the end of this year, and will release a preliminary outline of the scheme at its next policy-setting meeting in July. READ MORE

CLSA initiates coverage on Nazara Tech with Sell rating; stock tanks 12%

Shares of Nazara Technologies tanked 12 per cent to Rs 1,463.75 on the BSE in intra-day trade on Friday, amid heavy volumes, after the foreign brokerage firm CLSA initiated coverage on the stock with a Sell rating and target price of Rs 1,095, citing hefty premium valuation. The stock was trading close to its 52-week low level of Rs 1,412.50 hit on April 12, 2021. It had hit a high of Rs 2,026.90 on its stock market debut day, March 30, 2021. READ MORE

Top losers on BSE at this hour

Company PRICE(rs) CHG(%)
Graphite India 575.05 -13.91
Nava Bharat Vent 104.05 -9.29
JSW Energy 147.90 -8.19
HEG 1989.00 -7.99
Jai Corp 140.95 -7.63
» More on Top Losers

NEWS ALERT :: Voda Idea could raise funds via FDI route

ALERT :: Nifty hits a low of 15,450


Heatmap | Top Sensex gainers & losers with index down 500 points


Sensex crashes 500 points, hits day's low


SBI Cards declines 6% after nearly 7% equity changes hands via block deal

Shares of SBI Cards and Payment Services tanked 6 per cent to Rs 984 on the National Stock Exchange (NSE) in intra-day trade on Friday after nearly 7 per cent of the company's total equity changed hands on the NSE and BSE. At 10:26 am, the stock was trading 5.5 per cent lower at Rs 994 on the NSE. Earlier in the day, around 64 million shares, representing 6.8 per cent of the total equity of the company, changed hands on the NSE and BSE, exchanges data shows. READ MORE


Amid surge in retail participation, STT collection set to double in Q1FY22

The Securities Transaction Tax (STT) collection for the June quarter is set to be more than double from the year-ago period. Buoyancy in the stock markets, coupled with increased retail participation, has boosted trading activity and helped shore up STT. According to government sources, the revenue department has collected Rs 5,178 crore STT for the first quarter of 2021-22 (FY22) until June 16. READ MORE

Primary Market Update :: Dodla Dairy IPO subscribed nearly 4x

> The issue closes today

Globus Spirits zooms 50% in a week on strong Q4 nos; stock hits new high

Shares of Globus Spirits hit a new high of Rs 584 after rallying 10 per cent on the National Stock Exchange (NSE) in intra-day trade on Friday. The stock has now zoomed 50 per cent in a week since reporting a more-than-doubled consolidated profit after tax (PAT) at Rs 50.63 crore in the March quarter (Q4FY21), on the back of strong revenue. It had PAT of Rs 19.35 crore in the year-ago quarter. READ MORE


Most active stocks by volume

Company PRICE(rs) CHG(%) VOLUME
Suzlon Energy 7.52 4.88 33665602
SBI Cards 996.30 -5.19 18741405
Vodafone Idea 9.23 -2.12 17772994
South Ind.Bank 11.30 2.45 5771803
Punjab Natl.Bank 40.60 -1.22 3155631
» More on Most Active Volume

Sovereign bonds in India signal growing doubts on RBI's easy policy stance

A spike in inflation reading this week has revived debate among sovereign bond traders in India over how long the central bank could retain its dovish policy stance. The yield on India’s benchmark 10-year bonds surged to its highest since April, while the borrowing cost on Treasury bills rose to the highest in more than a year this week. READ MORE


Rupee opening

Source: Bloomberg


Sensex extends decline, down 250 pts now


All you wanted to know about Chris Wood's investing strategies

Christopher Wood, global head of equity strategy at Jefferies in his weekly notes to investors, GREED & fear, has been sharing his views on his investing strategies and the outlook for various asset classes, including cryptocurrencies over the past few weeks. READ ABOUT HIS VIEWS & INVESTMENT STRATEGIES HERE


ALERT :: Sensex slips into the red


MARKET VIEW | Brace for around 5% correction in markets

Macro signals continue to be mixed. While rising CPI inflation (6.3% in May) is a major concern, the performance of agriculture & advance tax numbers ( up 150% in Q1 FY22) are positives. In spite of restrictions imposed in Q1 the GDP growth in FY 22 is likely to touch 9.5% with above 25% growth in corporate earnings. Even though the market is exhibiting resilience, investors should be prepared for around 5% correction. From the global market perspective, it appears that markets have digested the mildly hawkish signal from the Fed. The US 10-year bond yield cooling-off from the high of 1.58 % touched after the Fed announcement to around 1.5% now is an indication that stock markets have shrugged off inflation fears for now.

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

Top gainers and losers on the S&P BSE SmallCap index

>> Index up 0.25 per cent.


MidCap index extends loss, underperforms benchmark indices


Khadim India jumps 13%, hits 52-week high on strong Q4 results

The company reported consolidated profit at Rs 11.52 crore in Q4FY21 as against a loss of Rs 19.87 crore in Q4FY20.


Natco Pharma slips 1% as Q4 PAT declines 43% YoY

Drug firm Natco Pharma said its consolidated net profit declined by 43 per cent YoY to Rs 53 crore for the fourth quarter ended March 31, 2021. Total income during the fourth quarter stood at Rs 360 crore, down from Rs 477 crore in the fourth quarter of the financial year 2019-20.


Result impact :: Tube Investment rallies 3.5% on healthy Q4 nos

The company reported standalone net at Rs 129.12 crore for the quarter ending March 31, 2021 as against Rs 73.55 crore during corresponding quarter previous year.


BEML trades flat ahead of IMG meeting

The inter-ministerial group (IMG) will meet on Friday to finalise the draft request for proposal (RFP) and share purchase agreement (SPA) for privatisation of BEML. The document will give the shortlisted bidders clarity on the liabilities they will have to take on board. 


Max Financial Services trade mildly in the red

Max Ventures Investment Holdings, promoter of Max Financial Services, on Thursday divested the company's shares worth Rs 783 crore through an open market transaction. Meanwhile, Government of Singapore picked up 60,13,487 shares of the company at Rs 1,000 apiece.


LARGE TRADE :: SBI Card drops over 5% after 15.7 million shares change hands

Private equity (PE) major Carlyle plans to offload 5.1 per cent take in SBI Cards and Payment Services on Friday. A total of 48 million shares of the credit card company will be on offer in the range between Rs 1,002 to Rs 1,041.3 per share --- a discount of 1 per cent and 4.7 per cent to the last closing price of Rs 1,051.7.


Sectoral trends on the NSE :: IT, PSBs charge ahead


Sensex Heatmap

Top gainers: Bajaj Finserv, IndusInd Bank, TCS

Top losers: ONGC, Asian Paints, Bajaj Auto


Opening Bell :: Nifty opens below 15,750


Opening Bell :: Sensex trades above 52,500


Commodity prices in early deals


Pre-open session :: Nifty holds 15,750


Pre-open session :: Sensex sees a pullback


CLSA on Power Grid

Reco: Buy | TP: Rs 275 

>> Its attractiveness to ESG investors as a play on ‘green corridors’, its inexpensive val (9x FY23CL PE), & a 34% dividend rise in in FY21-23CL make it an attractive (5-6.7%) dividend yield stock

>> Raise FY22/23 EPS estimate by 5%

Credit Suisse likes BPCL among OMCs

>> Marketing margins now normalised

>> Time to focus on post-divestment changes in sector

>> Prefer BPCL among OMCs

>> Believe new buyer has substantial room to increase EBITDA

>> Volumes shifts should negatively impact EBITDA for IOC and HPCL

Macquarie on CEAT

Maintains Neutral | TP: Rs 1280
 
>> Co targeting market-share gains across segments

>> Volume and margin pressures likely in 1Q FY22

>> FCF likely to remain constrained over next few year

CLSA on Axis Bank

Maintains BUY | TP: Rs 1025
 
>> Wave-2 impact looks manageable

>> Corporate cycle has turned

>> Company is increasing granularity and conservatism

>> Axis is increasing focus on creating value from subsidiaries
 

Sharekhan on Relaxo Footwear

Reco: Buy | TP: Rs 1,242

We retain our Buy recommendation on Relaxo Footwear (Relaxo) with a revised PT of Rs. 1,242. Value-for-money offering, enhanced distribution network, and strong balance sheet make it a better pick in the footwear space.

FY2021 volumes grew by ~7%; unfavourable mix due to higher sales of open-ended footwear (slippers) led to 9% decline in realisation resulting in 2% revenue decline.

The company took price increase of 7-8% to reduce inflationary pressure on gross margins.

Near-term performance is likely to be affected by COVID-19 led uncertainties. However, medium-term outlook is intact, as focus on improving penetration in southern markets, new product addition, and shift from non-branded to branded remain key growth lever

Sharekhan on Titan Company

Reco: Buy | TP: Rs 1,910

We maintain our Buy recommendation on Titan with a revised PT of Rs. 1,910. It remains one of our top picks in the discretionary space due to a strong balance sheet and dominance in the branded jewellery space.

The company expects strong recovery in pent-up demand especially in the jewellery segment in H2FY2022; Ticket size is also expected to go up due to higher wedding spends shifted towards jewellery buying.

Titan has a market share of 5-6% in the jewellery market. Sustained new customer addition, strong safety standards followed by the company, omni channel platform, and new product launches would help market share to improve ahead.

Balance sheet strength will help it to compete well with strong regional and large players in the domestic market.

CLSA initiates coverage on Nazara Tech with 'Sell' call

In Indian mobile gaming, eSports is niche, at 10% of US$1.2bn sector revenue as of CY20. Nazara Tech, a leader in eSports in India, is targeting tournament intellectual properties (IPs). However, competition is set to intensify led by Jio Games, Dream 11, MPL, and Paytm First Games.

We forecast Nazara’s revenue and Ebitda Cagr to be 35-73% over FY21-24CL, but with these still at Rs8.5-1.7bn/US$117-23m by FY23CL, valuation is expensive at 6x FY23CL EV/sales and 29x EV/Ebitda.

With valuation at a hefty premium of 3x to CLSA’s India coverage and ahead of gaming peers, we initiate with SELL and target price of Rs1,095.

Top stocks to keep on radar

SBI Card: Private equity (PE) major Carlyle plans to offload 5.1 per cent take in SBI Cards and Payment Services on Friday. A total of 48 million shares of the credit card company will be on offer in the range between Rs 1,002 to Rs 1,041.3 per share --- a discount of 1 per cent and 4.7 per cent to the last closing price of Rs 1,051.7.
 
Power Grid: Power Grid Corporation posted a 6.4% YoY increase in its consolidated net profit at Rs 3,526.23 crore for the fourth quarter of FY21. The figure stood at Rs 3,313.47 crore in same period last year. READ MORE

Market Ahead Podcast :: Top factors that could guide markets today

In the overnight session, a conviction in the strength of the economic recovery pushed investors into US technology stocks, driving the Nasdaq to near record high, although a post-Fed hangover left a subdued S&P nursing a very minor loss. Meanwhile, Dow - with a more pronounced drop - posted its fourth straight lower close. The Dow Jones Industrial Average fell0.62%, the S&P 500 lost 0.04% and the Nasdaq Composite added 0.87%. LISTEN TO THE PODCAST HERE

Bull spread strategy on HCL Tech

Rationale:
 
-- We have seen long build-up in the HCL Tech Futures till now during the June series, where we have seen 5 per cent rise in the Open Interest with price rising by 0.6 per cent.
 
-- Stock price has broken out on the daily line chart with higher volumes. READ MORE

Stock picks by Osho Krishan

BUY NOCIL | TARGET: Rs 226 | STOP LOSS: Rs 199
 
NOCIL has been trading in a symmetrical triangle pattern on the daily time frame. Currently, it is placed above all its major exponential moving averages on the daily time frame, suggesting inherent strength in the counter. Even on the oscillator front, 14 period RSI has witnessed positive crossover and is all set to surge northwards, wherein any breakout from the mentioned pattern could result in a huge splurge in the counter in near future.READ MORE

 

Results Today

BSE bulk deal data for Thursday

Bulk deal on NSE on Thursday

FIIs offload equity worth Rs 880 crore


Strong start on cards for D-Street

>> SGX Nifty was ruling 57 points higher at 15,749 around 8.35 am


Rupee slides to 74/$

Source: Bloomberg

Oil slips again on surging US dollar

Oil prices fell for a second consecutive day on Friday as the U.S. dollar soared on the prospect of interest rate hikes in the United States, but were nevertheless on track to finish the week flat - only slightly off multi-year highs. 
 
Brent crude futures were down 52 cents, or 0.7%, at $72.56 a barrel, extending a 1.8% decline on Thursday. U.S. West Texas Intermediate (WTI) crude futures were down 48 cents, or 0.7%, at $70.56 a barrel, after retreating 1.5% on Thursday.


Asian market drift in early trade

Asian stocks drifted Friday after a rally in U.S. technology shares and Treasuries Thursday, as investors unwound some of this year’s dominant reflation trades. 
 
  • S&P 500 futures rose 0.2%
  • Nasdaq 100 futures gained 0.3%
  • Japan’s Topix index slipped 0.2%
  • South Korea’s Kospi index was flat
  • Australia’s S&P/ASX 200 Index gained 0.5%
  • Hang Seng Index rose 0.8%
  • Shanghai Composite Index was little changed
(Source: Bloomberg)

US STOCK UPDATE :: Wall Street ends mixed with Nasdaq near record

In the overnight session, a conviction in the strength of the economic recovery pushed investors into US technology stocks, driving the Nasdaq to near record high, although a post-Fed hangover left a subdued S&P nursing a very minor loss. Meanwhile, Dow - with a more pronounced drop - posted its fourth straight lower close. The Dow Jones Industrial Average fell 0.62%, the S&P 500 lost 0.04% and the Nasdaq Composite added 0.87%.
 

Good morning, readers! Welcome to the Business Standard live blog.

Catch all the live market updates here.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel