MARKETS: Sensex slips 552 pts on weak global cues, rise in Covid-19 cases

NSE's nifty ended at 9,813.70, down 159 points or 1.6 per cent. India VIX surged over 6 per cent to 32.71 levels.
Benchmark indices ended with over 1.5 per cent cut on Monday, on weak global cues and a rapid rise in Covid-19 cases. 

The S&P BSE Sensex shed 552 points or 1.63 per cent to end at 33,228.80. During the day, the index hit a low of 32,923.74 against Friday's close of 33,780.89. HDFC Bank, ICICI Bank, HDFC, and ITC contributed the most to the index's fall while Reliance Industries (RIL) emerged as an outlier. The stock hit a fresh lifetime high of Rs 1,626.70 during the day, before settling at Rs 1,615, up 1.65 per cent. The company's partly-paid shares issued under rights issue made a strong stock market debut today, surging 10 per cent to Rs 710.65 on the NSE, in the early morning trade. READ MORE

NSE's Nifty ended at 9,813.70, down 159 points or 1.6 per cent. India VIX surged over 6 per cent to 32.71 levels. 

The broader market, however, fared better than the frontline indices. The S&P BSE SmallCap index ended unchanged at 11,844.85 while the S&P BSE MidCap index lost over a per cent to 12,455 levels. 

Sectorally, PSU Bank and media stocks gained in the trade while others ended in the red. The Nifty PSU Bank index rallied nearly 1.5 per cent to 1,371.50 levels while Nifty Media ended at 1,298.80, up nearly a per cent. 

On the other hand, Nifty Bank slipped over 3.5 per cent to 19,912.90 levels while Nifty Private Bank index fell nearly 4 per cent to 10,946.30. 

Global markets

Fears that a second wave of COVID-19 infections is under way sent jitters across global markets on Monday with stocks and oil under pressure while investors bought into safe havens such as German government debt.

The pan-European STOXX 600 fell 2.5 per cent with all sectors and regional markets trading deep in the red after losses accelerated in the final hours of trading in Asia.

Earlier, Japan's Nikkei fell 3.5 per cent and South Korean shares tumbled 4.8 per cent. Futures for the S&P 500 also extended losses, shedding 2.9 per cent.

Beijing reported its second consecutive day of record numbers of virus cases and hospitalisations rose in some US states. 

In commodities, oil prices fell on Monday as new coronavirus infections hit China, Japan and the United States, adding to concerns that a resurgence of the virus could weigh on the recovery of fuel demand.

Brent crude was down 93 cents, or 2.4 per cent, at $37.80 a barrel at the time of writing of this report. US West Texas Intermediate crude was down $1.33, or 3.7 per cent, at $34.93 a barrel.

(With inputs from Reuters)


3:45 PM IST

3:42 PM IST

3:36 PM IST The S&P BSE Sensex ended 552 points or 1.63 per cent lower at 33,228.80, while NSE's Nifty ended at 9,813.70, down 159 points or 1.6 per cent. 

3:27 PM IST

3:16 PM IST RATING: REDUCE | TARGET PRICE: Rs 400 While Havells’s dominant channel-based business model would help it sustain the ‘largest FMEG brand’ tag, in our view, subdued demand particularly in real estate-driven segments and challenges in scaling up Lloyd will pose risk to growth, potentially capping its valuation (already rich at 44x FY22E EPS).

3:09 PM IST JM Financial Limited (“Company”) announced the successful closure of its Qualified Institutions Placement (“QIP”). The Company has issued and allotted 11 crore equity shares of the face value of Re.1.0 each to qualified institutional buyers at an issue price of Rs.70.0 each (including a securities premium of Rs. 69.0 per equity share), aggregating to Rs. 770 crore, the company said in its press release. 

3:05 PM IST Shares of Lakshmi Vilkas Bank were locked in the 5 per cent upper circuit band at Rs 15.30 on the BSE on Monday after the lender said it has received preliminary, non-binding letter of intent (LoI) from Clix Capital Services Private Limited & Clix Finance India Private Limited dated June 12, 2020. The board of directors, the bank said, considered the said letter for further processing in their meeting held today, June 15. READ MORE 

2:59 PM IST -- The stock trading close to its all-time high level of Rs 1,624, touched in intra-day trade on June 8, 2020

2:51 PM IST COMPANY LATEST(rs) CHG(%) WIPRO 216.50 4.09 INFOSYS 693.45 0.20 FIRSTSOUR.SOLU. 37.85 0.26 TATA ELXSI 893.00 0.43 TECH MAHINDRA 548.45 -1.15 » More

2:46 PM IST >> TV18 Broadcast (up 13% at Rs 33.30) and Network18 Media & Investments (up 5% at Rs 36.35) hit their respective 52-week highs on the BSE today. Thus far in the month of June, these stocks have rallied 60 per cent and 52 per cent, respectively.

LIVE UPDATES

SECTOR WATCH:: Nifty Private Bank index tanks nearly 4%


MARKET AT CLOSE:: Losers and gainers on the S&P BSE Sensex


CLOSING BELL

The S&P BSE Sensex ended 552 points or 1.63 per cent lower at 33,228.80, while NSE's Nifty ended at 9,813.70, down 159 points or 1.6 per cent. 

MARKET CHECK


BROKERAGE VIEW:: Edelweiss Securities on Havells India

RATING: REDUCE | TARGET PRICE: Rs 400

While Havells’s dominant channel-based business model would help it sustain the ‘largest FMEG brand’ tag, in our view, subdued demand particularly in real estate-driven segments and challenges in scaling up Lloyd will pose risk to growth, potentially capping its valuation (already rich at 44x FY22E EPS).

MARKET UPDATE:: JM Financial raises Rs 770 cr via QIP

JM Financial Limited (“Company”) announced the successful closure of its Qualified Institutions Placement (“QIP”). The Company has issued and allotted 11 crore equity shares of the face value of Re.1.0 each to qualified institutional buyers at an issue price of Rs.70.0 each (including a securities premium of Rs. 69.0 per equity share), aggregating to Rs. 770 crore, the company said in its press release. 

Lakshmi Vilas Bank hits 5% upper circuit on receiving LoI from Clix Capital

Shares of Lakshmi Vilkas Bank were locked in the 5 per cent upper circuit band at Rs 15.30 on the BSE on Monday after the lender said it has received preliminary, non-binding letter of intent (LoI) from Clix Capital Services Private Limited & Clix Finance India Private Limited dated June 12, 2020. The board of directors, the bank said, considered the said letter for further processing in their meeting held today, June 15. READ MORE 


STOCK ALERT :: Reliance Industries bounces back 4% from day's low of Rs 1,562 on the BSE

-- The stock trading close to its all-time high level of Rs 1,624, touched in intra-day trade on June 8, 2020


IT stocks trade higher in an otherwise weak market

COMPANY LATEST(rs) CHG(%)
WIPRO 216.50 4.09
INFOSYS 693.45 0.20
FIRSTSOUR.SOLU. 37.85 0.26
TATA ELXSI 893.00 0.43
TECH MAHINDRA 548.45 -1.15
» More

Media stocks in focus :: Network18 media shares surge in trade

>> TV18 Broadcast (up 13% at Rs 33.30) and Network18 Media & Investments (up 5% at Rs 36.35) hit their respective 52-week highs on the BSE today. Thus far in the month of June, these stocks have rallied 60 per cent and 52 per cent, respectively.


Tata Motors trades near day's low, down 3% ahead of Q4 results


MARKET UPDATE :: Select PSU banks shares in focus

>> Bank of India surged 14% while Indian Bank up 5% in the intra-day trade

>> Bank of Maharashtra, Uco Bank, and Union Bank of India were up 4% on the BSE today


Recovery from intra-day lows in today's session

COMPANY DAY'S LOW(RS) DAY'S HIGH(RS) LATEST(RS) RISE(%)
BANK OF INDIA 40.85 47.85 45.80 12.12
LEMON TREE HOTEL 27.40 30.20 30.20 10.22
JUBILANT LIFE 603.00 673.50 663.60 10.05
RELIANCE POWER 2.46 2.70 2.70 9.76
Click here for the full list

Tyre stks in focus; JK Tyre, TVS Srichakra gain up to 10% in a weak market

Shares of tyre makers were trading higher in an otherwise weak market with JK Tyres, TVS Srichakra, Ceat and Apollo Tyres gaining up to 10 per cent on the BSE in the intra-day trade on Monday. At 01:46 pm, these stocks were up in the range of 2 per cent to 6 per cent, as compared to 2 per cent decline in the S&P BSE Sensex. However, MRF and Balkrishna Industries were trading flat, after gaining 3 per cent and 2 per cent, respectively, in the intra-day deals on the BSE. READ MORE 


Rupee Closing

Rupee settles 19 paise lower at 76.04 against US dollar vs Friday's close of 75.85/$

MARKET CHECK:: Top 5 losers on the BSE at this hour


MARKET CHECK:: Top 5 gainers on the BSE at this hour


STOCK ALERT :: SBI cracks over 3%, top loser on Nifty PSU Bank index


In poor health already, banks come under grip of Covid-19 pandemic

Even his worst detractors can’t accuse State Bank of India Chairman Rajnish Kumar of being economical with optimism. So, when the head of the country’s largest bank says, “I have money, but there are no takers of the money,” the signal is loud and clear: India’s bank credit market is in the midst of one of its worst crisis. READ MORE

Capital good stocks slip in trade; S&P BSE Capital Goods index down over 2%


NEWS ALERT :: Received preliminary, non-binding letter of intent from Clix Capital Services, says Lakshmi Vilas Bank

>> The Bank has received pre-liminary, non-binding letter of intent (LoI) from Clix Capital Services Private Limited & Clix Finance India Private Limited dated June 12, 2020, which the Board of Directors of the Bank has considered for further processing in their meeting held today (15 June, 2020). 

>> Under the non-binding LOI, the proposed transaction is subject to completion of due diligence, which the Bank and the intending parties will be carrying out and will be subject to regulatory and other customary approvals. 

(Via BSE filing)




Mutual funds rebalancing in May shows preference for low-beta stocks

Mutual funds (MFs) were among the major buyers in large share sales in companies, such as Hindustan Unilever, Bharti Airtel, and Kotak Mahindra Bank. All the three stocks featured in the most-bought list for May.
 
Besides these stocks, ICICI Bank, Power Grid, Dr Reddy’s, and Wipro were among the top buys for equity fund managers last month. ALSO READ: Coronavirus LIVE updates: Amit Shah calls all-party meeting on Monday On the other hand, index heavyweights Reliance Industries and HDFC Bank were the most-sold counters. READ MORE

Europe opens lower

(Source: Reuters)


Five key factors that dragged the equity market lower on Monday

Frontline Indian benchmarks - the S&P BSE Sensex and the Nifty50 - lost ground in trade on Monday, amid a broad-based selling. The fall is in line with their Asian peers, which also traded with deep cuts. Volatility index, India VIX, jumped around 9 per cent to 33.55 levels, indicating increased volatility.
 
The S&P BSE Sensex plunged as much as 775 points, or 2.29 per cent during the day, while NSE's Nifty50 lost over 200 points to trade around 9,755 levels at the time of writing of this report. READ MORE

Jubilant Life hits 52-week high on heavy volumes, soars 46% in 11 days

Continuing their northward movement, shares of Jubilant Life Sciences, hit a 52-week high of Rs 646, up 8 per cent on the BSE on Monday in the intra-day trade on the back of heavy volumes. The stock of the pharmaceutical company surpassed its previous high of Rs 639, touched on January 23, 2020. At 12:06 pm, it was trading 7 per cent higher at Rs 636, as compared to a 2.3 per cent decline in the S&P BSE Sensex. READ MORE

NEWS ALERT :: ICMR clarifies on delay in Covid-19 cases' peak

China's May industrial output rises 4.4% as economy struggles to recover

China's industrial output expanded 4.4 per cent in May from a year earlier but the gain was less than expected, official data showed on Monday, suggesting the economy is still struggling to get back on track after the coronavirus crisis. Analysts polled by Reuters had expected growth to quicken slightly to 5.0 per cent from a year earlier as more businesses resumed production, following a rise of 3.9 per cent in April, the first expansion since the virus emerged from China late last year. READ MORE

Ahead of Q4 nos | Here's what brokerages expect from Tata Motors' results

Tata Motors is all set to announce its March quarter results (Q4FY20) on Monday and analysts expect the company's revenue to decline over 25 per cent on a year-on-year basis, led by fall in overall volumes, while the loss for the quarter may come in at anything between Rs 2,600 crore to Rs 3,300 crore. READ MORE


NEWS ALERT :: Sun Pharma, Hikma enter into an exclusive licensing agreement for Ilumya

>> Sun Pharma and Hikma Pharmaceuticals PLC have entered into an exclusive licensing and distribution agreement for ILUMY, an innovative biologic product, for the Middle East & North Africa (MENA) region

>> Under the terms of the licensing agreement, Hikma will be responsible for the registration and commercialization of the product in all MENA markets and Sun Pharma will be responsible for product supply. Sun Pharma is eligible for upfront and milestone payments from Hikma. The term of this agreement is 15 years from first sale, with two years’ automatic renewal periods. 
 
Alert: ILUMYA is an USFDA approved innovative IL-23p19 monoclonal antibody used for the treatment of adults with moderate-to-severe plaque psoriasis who are candidates for systemic therapy or phototherapy. 

(Via BSE filing)
 

Mastek freezes at 20% upper circuit post March quarter earnings

The company’s EBITDA (earnings before interest, taxes, depreciation and amortization) margins improved 350 basis points to 17.3 per cent from 13.8 per cent in December 2019 quarter (Q3FY20). Consolidated net profit increased by 50 per cent to Rs 38.90 crore, while total income grew 39.9 per cent at Rs 354.20 crore over the previous quarter. READ MORE

MARKET CHECK :: Sensex crashes 800 pts


Gold steady as second Covid-19 wave fears in Beijing weigh on risky assets

Gold prices were little changed on Monday after posting their best week since early April as fears of a second wave of coronavirus infections in Beijing cut investors' appetite for riskier assets. Spot gold was steady at $1,729.40 per ounce as of 0316 GMT. U.S. gold futures eased 0.1 per cent to $1,734.90. The metal climbed 2.6 per cent last week, posting its biggest weekly gain since April 10. READ MORE

NEWS ALERT :: May WPI inflation comes in at -3.21%

>> Primary articles WPI at -2.92%

>> Food Inflation at 2.31%

>> Manufactured products inflation at -0.42%

>> Fuel and Power inflation at -19.83%

(Source: CNBC TV18)

IIFL on Hexaware

Hexaware’s promoter Baring PE (HT Global IT Solutions) has announced its intention to delist HEXW shares from stock exchanges, by acquiring 112.06m publically-owned shares (37.6%) in accordance with delisting regulations. With a 20% rally in the stock price last Friday, it is now trading close to our 12-mth target price.

IIFL on telecom sector

With respect to the AGR case, the Supreme Court (SC) has directed telcos to submit a roadmap for payment, the timeline of payment and the security they can provide to guarantee the payment. We expect the SC to relent in the face of the harsh economic reality that will confront the country if VIL shuts down. We expect the government to work on a solution, including lower interest rate, licence fee/spectrum fee cut, etc. We have BUYs on all four names, with the pecking order being Bharti, Infratel, RIL and VIL.

Edelweiss on Hindalco


Phillip Capital on Asian Paints


Elara Capital on Eicher Motors

We are monitoring the recent spurt in bookings and whether it would be sustainable or is just some of the pent-up demand coming back, given the limited period offers RE was offering customers. We cut our FY21-22E EPS by ~10-15% to factor in volume and margin cuts. We downgrade to Sell from Accumulate with a new SOTP-based target price of Rs 14,770 from Rs 14,019 on 20x FY22E P/E for the RE business and 10x FY22E EV/EBITDA for VECV. We expect a weak EPS CAGR of ~4% for RE over FY20-22E, and, hence we believe premium valuation is not justified.

Elara Capital on Shriram Transport Finance

We believe valuations of 0.9x FY22E P/ABV capture our concerns on growth, asset quality and change in hands once Piramal looks to exit its stake and stiff liability. Even post expectations of flat AUM and credit cost at 3.0% in FY21E, the entity is still well placed to deliver an average ROA of 2%+ over FY20-22E with ROE at 12%+, which demands P/ABV of 1.0x, which is still below the historical one-year forward P/B average of 1.8x. Given the valuation comfort, we revise to Buy from Accumulate with a new target price of Rs 887 from Rs 1,197 as we revise our earnings by 36% for FY21E and 30% for FY22E

MOSL on M&M

Mahindra & Mahindra (MM)’s 4QFY20 performance beat was led by a better mix and lower RM cost. While MM’s core business would recover faster, the focus on tightening capital allocation could act as a rerating catalyst.

We upgrade FY21/FY22E EPS by 8%/2% to reflect an improving mix. An improving core business and possible course correction on capital allocation would drive stock performance as valuations are still cheap. Buy, with target price of Rs 585.

Nomura on economy

We expect inflation to moderate, despite cross-currents on food price inflation in the short term, aided by easing food pressures as supply chains are gradually restored and due to lower core inflation. Meanwhile, the exit from the lockdown should see some tepid recovery in industrial production, although IP growth is likely to remain negative in May as well.

Overall, we estimate GDP growth at -5% y-o-y in 2020 and expect the RBI to deliver an additional 50bp of policy easing cumulatively, while prioritising on unconventional measures as the primary tool of policy delivery.

Why second wave of Covid-19 is a worry for equity markets

Many believe that the surge in the markets defy economic reality and is being fuelled by aggressive monetary easing by central banks across the world. The yield on the 10-year US government bonds, for instance, has dropped sharply, which is stroking carry trade. Easy money is entering the stock market in search of high returns. After a record sell-off in March, India has seen a sharp improvement in foreign flows since May. Stocks across sectors have seen double-digit gains. However, within that, interest-rate sensitive sectors such as realty, automobile, and banking have clocked the best returns. READ MORE

Top losers on BSE at this hour

COMPANY PRICE(rs) CHG(%)
JTEKT INDIA 68.40 -9.34
B H E L 29.40 -6.52
INDUSIND BANK 499.50 -5.41
ICICI BANK 326.80 -5.07
TAKE SOLUTIONS 57.30 -4.98
» More on Top Losers

ALERT :: Dow Jones Futures slump 850 pts

>> S&P BSE Sensex is at 33,060.36, down 720.53 points or 2.13 per cent.

>> Nifty50 is at 9,761.15-mark, down 211.75 points or 2.12 per cent.
 

NEWS ALERT :: Balrampur Chini Mills board to consider share buyback on June 23, 2020


NEWS ALERT :: Ingersoll Rand (India) issues letter for open offer for acquisition of up to 8,207,680 equity shares

Read offer here

(Via BSE filing)

Near-term upside in Nifty capped at 10,300, say technical analysts

The market’s dream run could be nearing its end as the benchmark Nifty may find it difficult to breach the key resistance level of 10,300, which happens to be the 100-day moving average (DMA). According to technical analysts, the Nifty’s upside could be capped around 10,300, while on the downside the index may slide below 9,700 if key support levels are breached. READ MORE

Aarti Industries dips 7% on early termination of long-term contract

Shares of Aarti Industries tumbled 7 per cent to Rs 852 on the BSE on Monday after the company said it has received an early termination notice from a customer invoking the "termination of convenience" clause of a long term contract entered on June 15, 2017. The contract was expected to generate revenue of approximately Rs 4,000 crore over 10-year period. READ MORE

BLOCK DEAL:: Around 4.6 cr shares (3.88%) equity of Tata Steel worth Rs 1,426 cr trade in multiple blocks on BSE & NSE

>> Average price of block deals - Rs 306/sh

HDFC twins, ICICI Bank top contributors to Sensex's 600-point fall today


MARKET CHECK:: Top 5 losers on the BSE at this hour


BROKERAGE VIEW:: HDFC Securities on Mahindra & Mahindra

STANCE: ADD | TARGET PRICE: Rs 520

We increase our FY21/22E EPS by ~7/8% to factor in the better than expected margin outlook. We set a revised SOTP based Mar-22 TP of Rs 520. We increase the multiple for the core business to 13x (10x earlier) due to (1) Improved outlook for Agri segment (2) Increased focus on capital allocation. Key risks: Weak response to new models on the downside, faster than expected economic recovery on the upside.

ALERT :: Sensex down 650 pts


Eicher Motors rises 3% despite fall in Q4 profit; ICICI Sec downgrades stk

For the financial year 2019-20, the company reported a PAT of Rs 1,827 crore as compared with Rs 2,203 crore in 2018-19.
 
Royal Enfield''s total revenue from operations was down by 7 per cent to Rs 9,154 crore, compared with Rs 9,797 crore recorded for the year ended March 2019. READ MORE

MARKET CHECK :: Sharp slide in indices; Sensex tanks 550 pts


Mahindra & Mahindra gains 9% in 2 days on strong Q4 operational performance

Shares of Mahindra & Mahindra (M&M) gained 2 per cent to Rs 518.50 in the early morning deals on the BSE on Monday, surging 9 per cent in the past two trading days, after it reported a robust operational performance in the January-March quarter (Q4FY20). The company reported a standalone net loss of Rs 2,500 crore, due to exceptional loss of Rs 2,800 crore on account of impairment on investments due to Covid-19 and others. It had posted net profit of Rs 849 crore in the year-ago quarter. READ MORE  

 
Mahindra

Global markets can retest March lows if infections surge: Christopher Wood

Global markets were volatile last week amid the possibility of a second wave of coronavirus infections and a weaker-than-expected projection of the US economy. Christopher Wood, global head (equity strategy) at Jefferies, tells Puneet Wadhwa that the most positive thing for Indian stocks right now is that the lockdown is ending in most places. READ INTERVIEW HERE

Rupee Opening

Rupee opens weaker at 75.95 per US dollar vs Friday's close of 75.84/$

BHEL tanks around 10% on Rs 1,532 cr loss in Q4; here's what brokerages say

State-run Bharat Heavy Electricals (BHEL) shares tanked as much as 9.5 per cent to Rs 28.45 apiece on the BSE on Monday after the company during the weekend reported a consolidated net loss of Rs 1,532.18 crore for the March quarter, mainly due to lower revenues and deferred tax. READ MORE

RIL partly paid-up shares make strong debut, surge 10% to Rs 710.65 on NSE

At 09:27 am, the shares were trading 7 per cent higher at Rs 693 on the NSE. On BSE, it was trading 7 per cent at Rs 692, after hitting a high of Rs 710.65 in the intra-day trade so far. A combined 1.7 million shares have changed hands on the NSE and BSE till the time of writing of this report. READ MORE

IndusInd Bank top Sensex loser at this hour, declines 3%


Most active stocks by volume

COMPANY PRICE(rs) CHG(%)
VODAFONE IDEA 10.37 2.17
SUZLON ENERGY 4.31 -4.86
B H E L 29.55 -6.04
RELIANCE POWER 2.47 -4.26
SOUTH IND.BANK 6.80 1.19
» More on Most Active Volume

Financials driving markets; Nifty Bank index slips over 2%


MARKET CHECK :: Sensex extends decline


Nifty IT index trades higher; Wipro, Infy top gainers


Reliance Industries gain 1% on stake sale to TPG, L Catterton


Result Impact | Eicher Motors rises over 2%

>> Eicher Motors Ltd has posted a 45.5 per cent decline in profit before tax, at Rs 446.84 crore during the quarter ended March 31, 2020, from Rs 819.59 crore during same period last year. This is after its share of the loss of its Joint Venture VE Commercial Vehicle Ltd, which was a loss of Rs 14.01 crore. The JV had made a a profit of Rs 75.47 crore in the year-ago quarter.

Cadila hits 52-week high on deal with Gilead Sciences Inc

>> After Cipla, Jubilant Lifesciences and Hetero Labs, Gilead Sciences Inc. has now signed a non-exclusive licensing agreement with Cadila Healthcare Ltd (Zydus Cadila) for manufacturing and distribution of its investigational drug Remdesivir for treating Covid-19.


Cipla holds gains in a weak market


Sectoral trends on NSE at open


Sensex Heatmap at Open | Only 5 of 30 constituents trade in the green


FIRST TRADE | Nifty tests 9,900


FIRST TRADE | Sensex slips 200 pts


BROKERAGE VIEW :: Motilal Oswal Financial Services on M&M

Maintains 'Buy', Target price: Rs 585

>> Despite MM's recent outperformance, valuations are still at a substantial discount to its five-year average (which captures both pain points of deterioration in the UV market share and the subsidiaries' performances).

>> Implied Core P/E for MM is ~16x/11.7x FY21/FY22E Core EPS and 1.3x/1.2x Core P/BV; this implies a ~26% discount to the five-year average P/E and ~38% discount to the five-year average P/B.

FUEL PRICE UPDATE

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


Market at Pre-open


Market at Pre-open


Stocks to watch: RIL, Eicher, Tata Motors, Cadila, Dr Reddy's, Hindalco Ind

RIL: Reliance Industries (RIL) partly-paid shares will make their stock market debut on Monday. These shares were issued in rights issue programme, which concluded on June 3 and garnered 1.6 times subscription. Besides, the company announced during the weekend the sale of 0.93 per cent equity stake in Jio Platforms to global alternative asset firm TPG on a fully diluted basis for Rs 4,546.8 crore. That apart, consumer-focused private equity firm L Catterton will an investment of Rs 1,894.50 crore in Jio Platforms at an equity value of Rs 4.91 trillion and an enterprise value of Rs 5.16 trillion.
 
Cadila: After Cipla, Jubilant Lifesciences and Hetero Labs, Gilead Sciences Inc. has now signed a non-exclusive licensing agreement with Cadila Healthcare Ltd (Zydus Cadila) for manufacturing and distribution of its investigational drug Remdesivir for treating Covid-19. READ MORE

BROKERAGE VIEW :: Nomura on M&M

Maintains 'Buy', Target price: Rs 611

>> Beneficiary of govt's rural focus

>> Raise our FY21/22 tractor estimates to (-)10%/(+) 20% from (-)15%/(+)25%

>> Factor in improved rural outlook and potential upside from govt initiatives

>> Raise M&M + MVML EBITDA margin estimates by 100bps/60bps 

BROKERAGE VIEW :: Nomura on Eicher Motors

Maintains 'Neutral', Target price: Rs 17,611

>> Pent-up demand may be driving initial demand

>> Success of new launches key monitorable

>> Lowered their RE margin by 60 bps to 23.4% for FY21

>> FY21.22 RE EPS revised to (-)7%/ (+)2%

NEWS ALERT :: China's May Industrial output growth comes in at 4.4%. reports Reuters

>> Industrial output growth quickened to 4.4% in May from a year earlier, the highest reading since December, official data showed on Monday

>> China’s industrial output rose for a second straight month in May but the gain was smaller than expected, suggesting the economy is still struggling to get back on track after the coronavirus crisis.

>> Retail sales and investment continued to contract, pointing to an uneven and possibly more drawn-out rebound in other sectors.

>> Analysts say signs of improvement continue to be seen in China ranging from steel production and car sales to more lights being turned on in industrial parks. However, they warn it could take many months for broader activity to return to pre-crisis levels.

Stock picks by Angel Broking: Buy Shriram Transport Finance, Mahanagar Gas

NSE Scrip Code – SHRIRAM TRANS FIN
 
View – Bullish
 
This has clearly been one of the laggards over the past few months. It has not participated at all in the overall recovery our markets saw from March lows. But since the last couple of days, most of the underperforming NBFC and Mid cap private banking names started to show some life. On Thursday, despite weak quarterly numbers, stock prices stood firm and on Friday, we saw massive surge when markets started recovering from lower levels. It has already confirmed a breakout on daily chart and the way its positioned, we can see good moves in this high beta name. Importantly, the volume activity has improved drastically in the last couple of days, providing credence to the move. We recommend this stock for a target of Rs.734 – 752 in coming weeks. Traders can keep their stop losses at Rs.658. READ MORE

9,500 to act as strong support for Nifty, says Gaurav Garg of CapitalVia

As per weekly option data, handful of put writing on higher strikes ranging from 9,400 to 9,700 is seen which shows Nifty might witness support in subzone of 9,500. 9,500 also is likely to act as a strong support as maximum put OI is placed here. But Nifty is likely to face stiff resistance at 10,000 as maximum call OI is placed here after 10,500 strike. READ MORE


Bulk deals on NSE as on Friday

Bulk deals on BSE as on Friday

FII/FPI & DII trading activity on NSE, BSE and MSEI


Rupee check

Source: Bloomberg


Oil prices drop as rising US coronavirus cases stoke fears of weak fuel demand

>> Oil prices fell on Monday, with US oil dropping more than 2%, as a spike in new coronavirus cases in the United States raised concerns over a second wave of the virus which would weigh on the pace of fuel demand recovery.
 
>> Brent crude futures fell 66 cents, or 1.7%, at $38.07 a barrel as of 5:46 am, while US West Texas Intermediate (WTI) crude futures fell 81 cents, or 2.2%, to $35.45 a barrel.

(Source: Reuters)

SGX Nifty update

At 8:20 am, the index was at 9,866 level, down 33.5 points or 0.34 per cent. 

Asian stocks sell off on second wave fears

Source: Reuters


Wall Street ends higher but indexes mark worst week since March selloff

Source: Reuters


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