Indices snap 2-day losing streak, Sensex ends 312 pts up; RIL top gainer

Representative image
Benchmark indices halted their two-day losing streak to settle 0.8 per cent higher in Tuesday's session, lifted by gains in heavyweights like Reliance Industries and HDFC.

The S&P BSE Sensex rose 312 points, or 0.8 per cent, to 39,435, with Reliance, NTPC, Axis Bank, Tata Steel, and Powergrid among the top gainers. The broader Nifty50 index settled 97 points, or 0.83 per cent, higher at 11,796. The market breadth was in favour of buyers. About 911 stocks advanced and 834 shares declined on the NSE.

All the Nifty sectoral indices ended the session in the green, with Nifty Metal and Nifty PSU Bank gaining 1.7 and 1 per cent, respectively.

In the broader market, the S&P BSE MidCap index added 96 points, or 0.6 per cent, to end at 14,674, while the S&P BSE SmallCap climbed 45 points, or 0.32 per cent, at 14,108.

BUZZING STOCKS

SBI Life Insurance shares dipped 5 per cent to Rs 674.90 on the BSE on Tuesday, as BNP Paribas Cardif's offer-for-sale (OFS) opened today. The floor price has been fixed at Rs 650 per share. READ MORE

Trent shares jumped 2 per cent to hit a new high of Rs 436 apiece on the BSE on Tuesday, extending Monday's rally of 5 per cent, after the company said it was seeking shareholders' approval to allot up to 24.65 million equity shares to Tata Sons. The stok ended the day 1.47 per cent higher at Rs 432.25. READ MORE

Emami shares rose 12 per cent to Rs 299 per share on the BSE on Tuesday after the company said its promoters intended to maintain their controlling stake in the company and not dilute it further. The promoters have also set a timeline of 6-8 months to bring down the debt. The stock ended the day 8.79 per cent higher at Rs 290.80. READ MORE

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2:51 PM IST While Anil Ambani-promoted Reliance Infrastructure looks to almost double its existing order-book in the current financial year, not all is well with its existing orders. One of RInfra's contracts worth Rs 567 crore from NTPC has been re-tendered and awarded to another company this month. In February 2018, RInfra informed exchanges it has received the Letter of Approval from NTPC for Flue Gas Desulphurisation (FGD) works of its 3x500 Mw power plant in Jhajjar, Haryana. READ MORE

2:40 PM IST Shares of tyre makers gained up to 8 per cent on the BSE on report that the government imposes definitive countervailing duty on truck and bus radial tyre imports from China. Reacting to the news, the stocks of TVS Srichakra rallied 8 per cent to Rs 1,963, followed by JK Tyre, which surged 5 per cent at Rs 80, Ceat was up 4 per cent at Rs 939, followed by Balkrishna Industries, up 3 per cent at Rs 766 and MRF by 2 per cent at Rs 56,099 on the BSE. READ MORE

2:31 PM IST - To connect (a) Mumbai with Riyadh and Dhaka, (b) Delhi with Dhaka and Jeddah

2:27 PM IST - Co. to be identified on the basis of non-compliance of KYC norms - 7 lakh out of 11.35 lakh comoanie shave complied with KYc norms Alert: June 15 was the deadline for KYC compliance

2:22 PM IST The government may lower interest rates on small savings schemes for the July-September quarter, according to senior government sources. The cut may only be for some — and not all — small savings schemes, and could be as high as 30-50 basis points.   The last round of changes in small savings rates were for the January-March quarter. The rates for one-year, two-year, and three-year time deposits were aligned with each other. The rates for the April-June quarter remained unchanged. READ MORE

LIVE UPDATES

Heatmap: S&P BSE Sensex


Nifty sectoral indices at close


Market at close


Nifty PSU Bank index is trading over 1 per cent higher


Torrent Pharma near day's high


Anil Ambani-promoted RInfra loses NTPC order worth Rs 567 crore to GE

While Anil Ambani-promoted Reliance Infrastructure looks to almost double its existing order-book in the current financial year, not all is well with its existing orders. One of RInfra's contracts worth Rs 567 crore from NTPC has been re-tendered and awarded to another company this month. In February 2018, RInfra informed exchanges it has received the Letter of Approval from NTPC for Flue Gas Desulphurisation (FGD) works of its 3x500 Mw power plant in Jhajjar, Haryana. READ MORE

Tyre stocks gain as govt imposes additional duty on Chinese tyre imports

Shares of tyre makers gained up to 8 per cent on the BSE on report that the government imposes definitive countervailing duty on truck and bus radial tyre imports from China. Reacting to the news, the stocks of TVS Srichakra rallied 8 per cent to Rs 1,963, followed by JK Tyre, which surged 5 per cent at Rs 80, Ceat was up 4 per cent at Rs 939, followed by Balkrishna Industries, up 3 per cent at Rs 766 and MRF by 2 per cent at Rs 56,099 on the BSE. READ MORE

NEWS ALERT | SpiceJet launches eight new non-stop international flights

- To connect (a) Mumbai with Riyadh and Dhaka, (b) Delhi with Dhaka and Jeddah

NEWS ALERT | Ministry of Corporate Affairs to conduct scrutiny of 3 lakh companies: CNBC TV18

- Co. to be identified on the basis of non-compliance of KYC norms

- 7 lakh out of 11.35 lakh comoanie shave complied with KYc norms

Alert: June 15 was the deadline for KYC compliance

Govt may cut interest rates of small savings schemes for July-Sept quarter

The government may lower interest rates on small savings schemes for the July-September quarter, according to senior government sources. The cut may only be for some — and not all — small savings schemes, and could be as high as 30-50 basis points.
 
The last round of changes in small savings rates were for the January-March quarter. The rates for one-year, two-year, and three-year time deposits were aligned with each other. The rates for the April-June quarter remained unchanged. READ MORE

YES Bank slips over 2%


HDFC AMC hits record high, rises 9% in four days

The stock surpassed its previous high of Rs 1,970 recorded on August 27, 2018. In the past four days, it has outpaced the market by gaining 9 per cent, as compared to a 0.20 per cent rise in the S&P BSE Sensex. READ MORE

Market check


Market check


Buzzing | Syndicate Bank rises over 3%


Stocks that hit 52-week high in BSE

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
HDFC AMC 1960.40 1971.00 28.25 1.46
REC LTD 161.15 162.30 5.55 3.57
TITAN COMPANY 1315.75 1317.35 16.40 1.26
TRENT 435.00 448.60 9.00 2.11
» More on 52 Week High

Top companies where promoters have trimmed their stake in the past one year

Promoters paring stake in their company is nothing new. While the move may raise concerns as regards their commitment to the company they own, the reasons for paring stake may vary and experts suggest investors should assess such moves on a case-to-case basis, rather than making a generalised view. READ MORE

NEWS ALERT | 2.9% equity of ICICI Lombard exchanged


Emami soars 12% after promoters set timeline to reduce debt

Emami shares rose 12 per cent to Rs 299 per share on the BSE on Tuesday after the company said its promoters intended to maintain their controlling stake in the company and not dilute it further. The promoters have also set a timeline of 6-8 months to bring down the debt. "The promoters of Emami Group have more than adequate pool of diverse assets of value. With a view to further reduce the debt and reap benefits of such investments, the process of identification for divestment of such assets has been initiated," Emami said in a press release. READ MORE

Trent soars to record high on fundraising plan; stock rallies 10% in a week

Trent shares jumped 2 per cent to hit a new high of Rs 436 apiece on the BSE on Tuesday, extending Monday's rally of 5 per cent, after the company said it was seeking shareholders' approval to allot up to 24.65 million equity shares to Tata Sons. The Tata group retail chain's subsidiary has outperformed the market by surging 10 per cent in the past week, after its board approved raising up to Rs 1,550 crore through a mix of issue of shares to its promoter Tata Sons on a preferential basis, and other options to fund its expansion. READ MORE

NEWS ALERT | Torrent Pharma redeems NCDs worth Rs 83 cr on June 24

Source: BSE filing

Tyre stocks gain

COMPANY NAME LATEST HIGH LOW CHG
(rs)
CHG(%)
APOLLO TYRES 201.45 205.50 197.20 2.10 1.05
JK TYRE & INDUST 79.50 81.75 75.55 3.25 4.26
BALKRISHNA INDS 763.75 769.90 735.00 22.70 3.06
CEAT 930.30 939.80 892.15 27.50 3.05
GOODYEAR INDIA 944.05 959.00 940.00 -5.35 -0.56
PTL ENTERPRISES 40.85 41.25 40.30 0.00 0.00
MRF 56069.20 56430.50 54544.80 1336.50 2.44

Market inches higher


Manappuram Finance climbs over 5%


Tata Power trades near day's high


REC zooms over 3%, hits 52 week high of Rs 162.4/sh


India plans to offer incentives to firms moving out of China amid trade war

India is weighing offering incentives to attract companies moving out of China amid its trade war with the US, a person familiar with the development said. Financial incentives such as preferential tax rates and the tax holiday provided by Vietnam to lure companies are among measures being considered, the person said, asking not to be identified as the discussion is still private. Industries identified for incentives include electronics, consumer appliances , electric vehicles, footwear and toys. READ MORE

Trading strategy by IIFL Securities

Mahanagar Gas June Futs 

Sell at Rs 820-826 | Target: Rs 808 | Stop Loss: Rs 830.5

The stock has been under pressure for the past two weeks and has finally broken down from consolidation pattern on the daily chart. MGL has also cracked below its 200-DMA, negative crossover on the moving averages further accentuates our bearish stance on the stock. Hold short positions with mentioned stop loss on closing basis.

Nifty Metal index is trading with gains


Sector update :: Kotak Securities on Automobiles

OEMs’ profitability will suffer initially as adoption rises in electric vehicles

Profitability in electric vehicles will likely be negative in the initial few years due to (1) lack of economies of scale and (2) potentially aggressive pricing by OEMs to increase adoption levels of EVs. As the electric two-wheeler market will largely be controlled by existing OEMs only, we expect profitability on electric vehicle sales to converge towards current profitability over a period of time with increase in scale and reduction in costs. Having said that, (1) profitability from sale of spare parts will be at risk for OEMs as EVs have much lesser moving parts and require much lower maintenance costs and (2) profitability will also be impacted due to decline in residual value of internal combustion engines (ICE) vehicles, which can put pressure on pricing of ICE vehicles

NEWS ALERT | Alembic Pharma gets US FDA nod for Oseltamivir Phosphate capsules

-- The capsules are used to treat and prevent Influenza A & B

Torrent Power zooms 8%


NEWS ALERT | Govt imposes countervailing duty on radial tyres above 16 inch from China: CNBC TV18

Alert: Rim above 16 inches is normally used in buses, lorries/trucks

JSW Steel makes sharp recovery

- Co hit its 52 week low earlier in the day after CLSA expressed concerns over steel industry


Pick of the Week | Axis Securities


NEWS ALERT | YES Bank seeks counter bids against Rs 111.4 cr offered for JP Assoc under Swiss Challenge Method: CNBC TV18

-  Bids are invited by June 27

Andhra Bank gains 1% after board approves proposal Rs 2,000 crore as equity capital


SBI Life dips 5% as BNP Paribas' offer-for-sale opens today

SBI Life Insurance shares dipped 5 per cent to Rs 675 in early morning trade on the BSE on Tuesday, as BNP Paribas Cardif's offer-for-sale (OFS) opened today. The floor price has been fixed at Rs 650 per share. BNP Paribas Cardif, the foreign partner of SBI Life Insurance, will sell up to 25 million shares, representing 2.5 per cent stake in the insurance company, for at least Rs 1,625 crore through OFS mechanism. The two-day OFS today opened for non-retail investors and on Wednesday for retail investors. READ MORE


BSE Oil & Gas index is trading 1.22% higher

- OMCs gain as oil prices slip

- At 10:00 am, Brent Crude Futures was trading at $63.74 per barrel. 


Nifty Realty is the only index trading in the green


Gayatri Projects tanks over 8% in trade


Nifty IT index is trading 0.7 per cent lower


NEWS ALERT | There are 4 FIRs against Kislay, Ram Mani: Indiabulls HF

Alert: Kislay Panday and Ram Mani Panday run law firm named Managium Juris LLP

Broader markets' trends

- Nifty Mid Cap is trading 0.05 per cent higher while Nifty Small Cap is trading 0.32 per cent lower


Eris Lifesciences gains 3% in trade


SBI Life Insurance falls 4%


Welspun Corp slips 2% in trade


Emami gains over 3% in morning deal


Zee Entertainment dips 2%


Tata Steel slips over 1%


Top gainers and losers on S&P BSE Sensex


Sectoral trends on NSE


Market at open


Market at open


Top gainers and losers on S&P BSE Sensex


Market at pre-open


Rupee opening

Rupee opens higher at 69.32/$ vs Monday's close of 69.35 against the US dollar

Market at pre-open


BNP Paribas Cardif to offload 2.5% stake in SBI Life for Rs 1,625 crore

BNP Paribas Cardif, the joint venture partner in private life insurance company SBI Life, will offload 2.5 per cent equity stake in the life insurance company for about Rs 1,625 crore. This will be done through an offer for sale (OFS) on the bourses for Rs 650 apiece. The OFS will take place in two trading days. At present, BNP Paribas Cardif holds a 7.7 per cent equity stake in the life insurer. READ MORE

Deputy Governor Viral Acharya resigns: The plain-speaking outsider at RBI

Viral Acharya started his June monetary policy minutes quoting Santiago, the old fisherman in, The Old Man and the Sea. This immortal character created by Ernest Hemingway became a symbol of reputation, dignity and pride in what one does. READ MORE

Stocks to watch

SBI Life: BNP Paribas Cardif, the joint venture partner in private life insurance company SBI Life, will offload 2.5 per cent equity stake in the life insurance company for about Rs 1,625 crore.
 
Piramal Enterprises: The company is planning to sell its entire 20 per cent stake in Shriram Capital to fund growth of its financial services business, the Ajay Piramal-led firm said on Monday. READ MORE

Sebi's move to tighten share pledging norms will improve customer security

Many stockbrokers like Amrapali Aadya Trading & Investment, Kassa Finvest, Unicon and F6 Finserve have defaulted over the past couple of years, resulting in losses to their clients. Many of these defaulters had misused their clients’ shares and funds that were lying with them. The Securities and Exchange Board of India (Sebi) on June 20 came up with a circular aimed at curbing such malpractices. READ MORE

Street prefers large-cap information technology firms over mid-tier peers

A year ago, select mid-cap information technology (IT) companies were trading at a premium to their larger or tier-I peers. Tier-II players such as L&T Infotech, Hexaware, Mphasis and Mindtree were trading in the range of 22-27 times their one-year forward earnings estimates in July. In comparison, tier-I players, barring TCS, were trading at their one-year forward price to earnings multiple of 13-18 times. READ MORE

Number of penny scrips up 50% since 2018; stocks in high-denominations drop

Companies with stock prices quoting in single-digits have surged over 50 per cent since the beginning of 2018. On the other hand, the universe of companies with stock prices in high-denominations is shrinking. The trend underscores the weak sentiment in the market where companies with uncertain business outlook, governance concerns and high leverage are seeing an exodus of investors. READ MORE
Photo: Kamlesh Pednekar

Retail investors are still wary of the markets: Edelweiss' Vinay Khattar

Even though key economic indicators suggest slow growth at present, VINAY KHATTAR, Head, Edelweiss Investment Research, tells Chirinjibi Thapa that some early signs of a probable economic growth revival have already sprouted. "We are currently bullish on the markets for two reasons. First, easier monetary policy will act as a catalyst in improving nominal growth. Second, we expect earnings revival to take place, primarily driven by public sector banks," Khattar said. READ THE FULL INTERVIEW HERE
Vinay Khattar, head of Edelweiss Investment Research

Donald Trump and Xi Jinping to seal a deal? A very slim chance, say traders

A common view among China investors: there’s little chance the two leaders will suddenly reach an agreement and resolve a trade dispute that has weighed on markets over the past year. Most are keeping an emphasis on domestic-focused defensive stocks, though much potential downside is already priced in, while foreign-exchange traders expect a slight weakening in the yuan. READ MORE

Expensive valuations of IndiaMART IPO may disappoint investors

Investors looking for short- to medium-term returns may be in for a disappointment if recommendations of broking houses on the initial public offering (IPO) of IndiaMART InterMESH (IndiaMART) are anything to go by. Valuations for the Rs 472-crore IPO that opened on Monday are at 140x its trailing 12-month net profit. READ MORE

Emami Group promoters divest 10% stake for Rs 1,230 crore to pare debt

Mohan Goenka, director, Emami Group, said the stake sale would bring down the promoter-level debt from Rs 3,300 crore to Rs 2,200 crore. After repaying the debt, the pledged shares would come down from 47-48 per cent to 37 per cent. READ MORE

ICICI Bank still affordable for investors as positive triggers intact

At a time when quality stocks trade at prohibitive valuations, particularly in the financials space, ICICI Bank is an exception which still lends itself affordable for investors. Trading at two times its FY20 estimated book value, despite a sharp rally in three months, the bank’s stock continues to trade at a discount to peers such as Axis Bank and HDFC Bank. READ MORE

MCX, NCDEX gear up for index futures post Sebi nod, ICEX has no plans

Commodity exchanges in India are gearing up to launch futures trading in indices after the market regulator allowed them to launch products in this segment last week.
 
The Securities and Exchange Board of India (Sebi) last week allowed comexes to launch futures trading in indices after seeking prior permission. Following this circular, leading commodity exchanges, including the Multi Commodity Exchange of India (MCX) and National Commodity and Derivatives Exchange (NCDEX), have started preparations in this direction. READ MORE

Airtel, Vodafone Idea continue to lose subscribers; Jio, BSNL gain in April

While wireless subscriber additions for April remained flat, growing 0.04 per cent to 1.16 billion after a decline of nearly 22 million in March, the data released by the Telecom Regulatory Authority of India showed that rural subscription growth dipped 1.38 per cent to 509.6 million. Bharti Airtel and Vodafone Idea continued to lose subscribers even as Reliance Jio and BSNL gained subscribers.


Sebi plans to tighten rules of pledging shares by promoter group entities

Sebi will also make changes to takeover code regulations so that any encumbrance on listed securities is disclosed. It is also likely to make key relaxations to the insider trading framework to ensure that the trading window closure does not clash with corporate activities of listed companies. READ MORE


Today's picks: From Airtel to Tata Steel, hot stocks to watch on Tuesday

Zee Entertainment
 
Current price: Rs 341
 
Target price: Rs 335
 
Keep a stop at Rs 344 and go short. Add to the position between Rs 336-Rs 337. Book profits at Rs 335. READ MORE

Rupee check

Source: Bloomberg


Oil check

At 7:38 am, Brent Crude Futures were trading at $64.13 per barrel.

SGX Nifty

At 7:37 am, SGX Nifty was trading 12 points higher at 11,728 levels.

Asian Markets check

Source: Reuters


US Market check

Source: Reuters


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