The benchmark indices settled over 1% higher on Friday after the rupee recovered from its all-time low and Asian peers staged a pullback.
The S&P BSE Sensex ended at 35,423, up 386 points while the broader Nifty50 index settled at 10,714, up 125 points.
Among sectoral indices, the Nifty Metal index settled 2.8% higher led by a surge in the shares of Jindal Steel & Power, NMDC and Hindalco Industries. The Nifty PSU Bank index also rose 1.35% led by IDBI Bank, Oriental Bank of Commerce and Syndicate Bank.
On the BSE, the S&P BSE Midcap index rose 1.8% higher on Friday and the S&P BSE Smallcap index ended 1.9% up.
Among individual stocks, Tata Steel was the biggest gainer on S&P BSE Sensex, gaining 3.6% to settle at Rs 567.85. The market heavyweight Reliance Industries also rose 3% to end at Rs 972.95 on Friday.
RUPEE
The rupee, which breached the 69 per dollar mark for the first time on Thursday, recovered tracking a rebound in Asian shares and currencies.
The Indian currency had on Thursday breached the 69-mark but covered lost ground to finally close at an all-time low of 68.79 with a fall of 18 paise against the US dollar due to multiple headwinds like weak global cues and concerns related to inflation and fiscal slippage.
GLOBAL MARKETS
Asian share markets rallied from nine-month lows on Friday as Chinese shares rebounded from a sell-off, but the market outlook remains gloomy a week before initial US and Chinese tariffs are set to take effect.
MSCI's broadest index of Asia-Pacific shares outside Japan was 1.4 per cent higher, Japan's Nikkei stock index was up 0.2 per cent, and South Korea's KOSPI rose 0.5 per cent. China's blue-chip CSI300 index gained 2.3 per cent, and the Shanghai Composite index was 2 per cent higher. Hong Kong's Hang Seng index rose 1.5 per cent.
OIL PRICES
Oil prices dipped on Friday amid escalating trade friction between the United States and other major economies, although crude markets remain tight due to supply disruptions and generally high demand.
US West Texas Intermediate (WTI) crude futures were at $73.19 a barrel, down 26 cents (0.4 percent) from their last settlement. WTI on Thursday hit its highest since November 2014 at $74.03 per barrel. Brent crude futures were at $77.74 per barrel, down 11 cents (0.1 per cent).
BSE Sensex: Tata Steel, RIL among top gainers of the day
Market at close
The S&P BSE Sensex ended at 35,423, up 386 points while the broader Nifty50 index settled at 10,714, up 125 points.
IDBI Bank gains 12% ahead of Irdai meeting
IDBI Bank has rallied 12% to Rs 55.85 on the BSE on the back of heavy volumes ahead of the Insurance Regulatory and Development Authority of India (Irdai) meeting today to consider Life Insurance Corporation’s (LIC’s) proposal to pick up a substantial stake in the bank. READ MORE
India's spice export grows by record 8% to 1 million tonnes in 2017-18
India exported a record 10,28,060 tonnes of spices and spice products in 2017-18 as against 9,47,970 tonnes in 2016-17, an increase of almost 8 per cent. In dollar terms, exports of spices were pegged at $2,781.46 million, notching an increase of five per cent as compared to 2016-17. READ MORE
Ultratech Cement rises after commissioning clinker plant
Ultratech Cement rose 0.45% to Rs 3759.70 on BSE after the company said it commissioned the second unit of 1.75 mtpa cement grinding capacity at Dhar in Madhya Pradesh. The announcement was made during trading hours today, 29 June 2018. READ MORE
Making ethanol under new method could solve India's sugar surplus problem
The Centre on Monday not only raised the price of ethanol produced from C-heavy or C-grade molasses but it also fixed a price for ethanol produced from B-heavy molasses and sugarcane juice for the first time, something which has been a rarity in India until now. READ MORE
Gold gains as dollar dips, but set for worst month since November 2016
Gold prices rose on Friday after hitting a more than six-month low in the previous session as the dollar retreated from recent highs amid a rising euro, but the yellow metal looked set to post its sharpest monthly fall in 19 months.
Spot gold was 0.3 per cent higher at $1,250.98 an ounce. On Thursday, it touched $1,245.32, its lowest since Dec. 13, 2017. READ MORE
Currency crash: Weakening rupee may not help India's export by much
The weakening rupee might not help our export by much, as currencies of competing nations are depreciating at the same or faster pace. A weaker currency makes export cheaper.
Starting the year at 63.8 to the dollar, the rupee has slid over the past six months to the near-69 to the dollar on Thursday. READ MORE
Why efforts to strengthen rupee may squeeze Indian banks' earnings
The Indian central bank’s efforts to tighten the availability of rupees in the market and halt a slide in the currency may squeeze profitability at the nation’s lenders as it raises their funding costs, according to the local unit of Moody’s Investors Service.
The rupee, Asia’s worst-performing currency this year, touched a record low on Thursday with rising oil prices threatening to stoke inflation and worsen government finances. READ MORE
Bhagiradha Chemicals up 62% in 2 days after Ratnabali Investment buys stake
Shares of Bhagiradha Chemicals & Industries have rallied 19% to Rs 333 per share on the BSE in intra-day trade, surging 62% from their Wednesday’s low of Rs 206 after Ratnabali Investment Private Limited and Aditya Goenka bought nearly 15% stakes in agrochemicals company through open market. READ MORE
Xiaomi prices Hong Kong IPO at bottom of range, raises $4.72 bn: Report
China's Xiaomi Corp priced its Hong Kong initial public offering (IPO) at the bottom of an indicative range, raising $4.72 billion in the world's biggest tech float in four years, people close to the transaction said on Friday.
Xiaomi priced its share offering at HK$17 per share ($2.17), the bottom of a price range of HK$17 to HK$22, the people said. It is selling about 2.18 billion shares, one of the people said, making the IPO the largest in the technology sector since Alibaba Group Holding Ltd raised $25 billion in New York in 2014. READ MORE
Britannia Industries hits new high; stock surges 70% in one year
Shares of Britannia Industries were trading higher for the fifth straight day, hitting a new high of Rs 6,189 per share, up 1.5% on the BSE in intra-day trade on Friday. READ MORE
Girish Chandra Chaturvedi named ICICI Bank's non-exec part-time chairman
Private sector lender ICICI Bank appointed former bureaucrat Girish Chandra Chaturvedi as its non-executive part-time chairman on Friday, media reports said. Chaturvedi is a 1977-batch IAS officer, who retired as the Oil Secretary in January 2013.
The bank will now send Chaturvedi's name to the Reserve Bank of India for clearance. The term of M K Sharma, the current chairman of ICICI Bank, ends on June 30. READ MORE
NEWS ALERT ICICI Bank appoints GC Chaturvedi as an Independent Director & non-executive part-time
Aurobindo Pharma: Nod for niche drugs, strong pipeline to push earnings
Aurobindo Pharma has been in the news and for good reasons. The most recent has been the receipt of an approval for a complex injectable product launch in the US. The approval of anti-bacterial injection, Ertapenem, provides a significant opportunity with limited competition.
The approval has also boosted confidence in the company’s injectables portfolio and its US business. Concerns over pricing pressure in the US and FDA inspections at its various manufacturing units had pushed down its stock to 52-week lows in early June. READ MORE
Credit-linked subsidy scheme under the PMAY can often be baffling
The regulations for credit-linked subsidy scheme (CLSS) under the Pradhan Mantri Awas Yojana (PMAY) may sometimes be confusing even for lenders. Consequently, a person who might be eligible for the subsidy may lose it. While taking a home loan, a bank executive told Suhas Joshi that he will not get the home loan as his the tenure is 23 years. The regulation says loans up to 20 years are eligible for the scheme. READ MORE
Indian companies are taking cover on unhedged positions as rupee falls
With the rupee falling below the psychological barrier of 69 to a dollar on Thursday, companies are taking cover on unhedged positions to reduce further losses. The Indian currency has lost 7.1 per cent of its value against the US one since January, making finance heads redraw their foreign exchange (forex) strategy. READ MORE
Fedders Electric tanks 46% in 6-days as CARE revises credit rating
Shares of Fedders Electric and Engineering (formerly Fedders Lloyd Corporation) are locked in their lower circuit of 10% at Rs 28.85 per share, extending their decline on the BSE in the past five days, after the rating agency CARE Ratings revised the rating of the long and short term bank facilities of the company. READ MORE
MFIs turn aggressive lenders, signs of overborrowing emerge in microlending
With multiple financial institutions chasing same set of borrowers in rural areas, signs of over-borrowing are now apparent in the microfinance sector. In fact, close to 20-30 per cent of applications received by micro lending institutions are now getting rejected on account of existing excess borrowing. READ MORE
Graphite India, HEG hit upper circuit of 5%
Shares of graphite electrodes manufacturers Graphite India (Rs 840) and HEG (Rs 3,311) are locked in the upper circuit of 5% on the BSE after a foreign brokerage firm initiated an outperform rating on both these stocks. READ MORE
Rupee recovers from all-time low, regains 18 paise on dollar selloffs
The rupee recovered from its record low by rising 18 paise to 68.61 against the US dollar in early trade on Friday on fresh selling of the American currency by banks and exporters. READ MORE
RBI flags MFs' borrowing play; bank lines are in excess of Rs 1 trillion
The central bank’s periodic Financial Stability Report has highlighted issues with the way mutual funds use banks as a liquidity stop-gap and suggested that the practice requires greater supervision. Mutual fund regulations allow schemes to borrow money to meet temporary liquidity needs. READ MORE
INTERVIEW OF THE DAY Markets have priced in a stable govt: Kotak Mahindra Asset Management MD
Mid-caps and small-caps are still at a premium despite the recent correction, Nilesh Shah, managing director, Kotak Mahindra Asset Management, tells Ashley Coutinho. According to him, there is still room for a downside in momentum-driven micro-, mini- and small-caps. CLICK HERE FOR MORE
GODREJCP JULY FUTURES: Buy around 1213- 1214 for a potential upside target of 1245 with a stop below 1195 (spot levels)
ALBK JULY FUTURES: Sell around 41-42 for a potential downside target of 36.50 with a stop loss placed above 44 (spot levels)
COVERED PUT STRATEGY IN IBULHSGFIN : Sell one lot of IBULHSGFIN JULY FUT @ 1140-1142 & Sell one lot of IBULHSGFIN JULY 1100 PE @ 28| Max Profit: 34000 | Max Loss: Unlimited above BEP|BEP: 1168| SL: Above 1177 (Spot levels)
(Source: Karvy)
Nifty sectoral trend
BSE Sensex heatmap
Market at open
At 9:16 AM, the S&P BSE Sensex was trading at 35,148, up 111 points while the broader Nifty50 was ruling at 10,625, up 36 points.
Rupee slide to weaken equity return; IT and pharma stocks look good
The broader market doesn't like a weak rupee. Historically, stock market returns have been poor in the year when the Indian currency has depreciated against the dollar and vice versa. The rupee is down 7.1 per cent against the dollar since January and the benchmark BSE Sensex index is up only 2.8 per cent during the period, sharply down from the 17 per cent rise in the same period last year. READ MORE
Rupee, Indian currency
Derivatives strategy on Federal Bank by HDFC Securities
Buy FEDERAL BANK June 77.5 PUT at Rs 2.50
Stop loss of Rs 1.70
Target Rs 4
Rationale: We have seen Short positions being built in Federal Bank futures today where, We have seen sharp Rise in Open Interest with Price cut of 5%.
Stock price has given breakdown on the daily chart from multiple support placed at 80 odd levels, with rise in Volumes
Stock price is making lower top lower bottom formation on the daily chart Since October 2017.
Short term moving averages are trading below long term moving averages indicating bearish trend for the short to medium term.
Momentum Indicators and Oscillators are Indicating weakness in the stock for the short to medium term. READ MORE
Top stock ideas from Anand Rathi Research for today's trade
LUPIN: BUY
TARGET: Rs 940
STOP LOSS: Rs 880
The stock has formed a sideways channel in its wave 4 on the daily charts. Post wave 4 there is a wave 5 upside which is expected from here on. The momentum indicators are well in buy mode, hence we recommend initiating a buy on this stock.
JUBLFOODS: SELL
TARGET: Rs 1,270
STOP LOSS: Rs 1,411
The stock has formed a bearish wedge pattern in its wave 5 which is a bearish reversal sign. The momentum indicators on the daily charts have gone into sell mode which is also a bearish reversal sign. The stock has broken the rising wedge pattern which is a further confirmation of the same. READ MORE
The SGX Nifty was at 10,616.50, up 0.40 per cent from the previous close.
Asian Markets
Asian shares remained near nine-month lows on Friday despite small gains on Wall Street overnight, as ongoing concerns over global trade frictions dampened sentiment, though a move to ease foreign investment curbs in China could boost markets there.
MSCI's broadest index of Asia-Pacific shares outside Japan was flat, while Japan's Nikkei stock index was down 0.2 per cent.
Wall Street
Stocks on Wall Street posted small gains on Thursday, helped by financial and technology shares, but broader market sentiments remained subdued on lingering concerns over US-driven trade tensions.
The Dow Jones Industrial Average rose 98.46 points (0.41 per cent) to 24,216.05, the S&P 500 gained 16.68 points (0.62 per cent) to 2,716.31, and the Nasdaq Composite added 58.60 points (0.79 per cent) to 7,503.68.
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