MARKET WRAP: Sensex tanks 491 pts, ends below 39k at 1-month closing low

Benchmark indices slipped on Monday, dented by losses across sectors, after India slapped higher tariffs on certain US products in retaliation to Washington’s decision to remove certain trade privileges for New Delhi.

The government, after dragging its feet for almost a year, decided to increase tariffs on 29 high-value US agricultural and industrial imports by up to 50 per cent. READ THE FULL REPORT HERE

The investor sentiment was further dampened by investor concerns over patchy monsoon and the government’s ability to bolster a slowing economy.

The benchmark S&P BSE Sensex ended the day 491 points, or 1.25 per cent, lower at 38,961, with Tata Steel, Tata Motors, ONGC, Vedanta, and Sun Pharma topping the list of losers. Only YES Bank, Coal India, and Infosys out of the 30 BSE constituents ended the session in the green.

The broader Nifty50 index dipped 151 points, or 1.28 per cent, to 11,672. About 685 shares on the NSE advanced, 1,847 declined, and 126 shares remained unchanged.

All the Nifty sectoral indices closed Monday's session with losses, with Nifty Metal, down 2.87 per cent, and Nifty Auto, down 1.69 per cent, taking the deepest cuts. Moreover, Nifty Bank, Nifty Fin Service, Nifty Pharma, Nifty PSU Bank, and Nifty Private Bank, all dipped over 1 per cent.

In the broader market, the S&P BSE MidCap index settled at 14,531, down 190 points, or 1.29 per cent, while the S&P BSE Smallcap index skidded 193 points, or 1.35 per cent, to 14,173.

 
BUZZING STOCKS

Shares of Reliance Infrastructure (RInfra) hit an over 28-year low of Rs 52.70, down 10 per cent on the BSE on Monday in the early morning trade after the auditors raised questions about the company’s ability to continue in business. The stock ended the day 4.72 per cent lower at Rs 56.50. READ MORE

Shriram Transport Finance Company shares dipped 6.54 per cent to Rs 1,014 on the National Stock Exchange (NSE) on Monday after Piramal Enterprises sold its entire 9.96 per cent stake in the company through open market. READ MORE

Shares of New Delhi Television (NDTV) skid 8 per cent to Rs 32.10 during the early morning trade on the BSE on Monday, after markets regulator the Securities and Exchange Board of India (Sebi) banned the group chairman Prannoy Roy and director Radhika Roy from assessing the capital market for two years. However, the stock settled for the day at Rs 35, 0.57 per cent higher. READ MORE

3:59 PM IST COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%) AMARA RAJA BATT. 600.50 598.50 -13.15 -2.14 BAYER CROP SCI. 3413.35 3407.25 -101.40 -2.88 BHARAT FORGE 443.80 439.50 -10.90 -2.40 BIOCON 247.00 245.00 -1.90 -0.76 BOMBAY BURMAH 1065.00 1055.00 -41.65 -3.76 » More on 52 Week Low

3:58 PM IST COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME JET AIRWAYS 66.55 -15.50 -18.89 2601342 PC JEWELLER 48.20 -9.20 -16.03 6647224 RELIANCE CAPITAL 70.80 -5.75 -7.51 3475617 JP ASSOCIATES 3.43 -0.26 -7.05 1988202 TEJAS NETWORKS 156.50 -11.05 -6.60 13721 » More on Top Losers

3:57 PM IST

3:57 PM IST

3:56 PM IST The S&P BSE Sensex ended at 38,960.79, down 491.28 points while the broader Nifty50 index settled at 11,672.15, down 151.15 points.

3:10 PM IST Shares of metal companies, mainly steel, were under pressure, with Nifty Metal index slipping nearly 3 per cent on the National Stock Exchange (NSE) amid trade tension and weak data from China. Jindal Steel and Power (JSPL), Steel Authority of India (SAIL), Tata Steel, JSW Steel and Vedanta were down in the range of 3 to 6 per cent on the NSE. READ MORE

2:56 PM IST

2:52 PM IST - All sectoral indices are trading over 1% lower, except Nifty metals which is down over 2%

2:51 PM IST

2:50 PM IST

LIVE UPDATES

Stocks that hit 52-week low on S&P BSE Sensex

COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%)
AMARA RAJA BATT. 600.50 598.50 -13.15 -2.14
BAYER CROP SCI. 3413.35 3407.25 -101.40 -2.88
BHARAT FORGE 443.80 439.50 -10.90 -2.40
BIOCON 247.00 245.00 -1.90 -0.76
BOMBAY BURMAH 1065.00 1055.00 -41.65 -3.76
» More on 52 Week Low

Top losers on BSE500

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
JET AIRWAYS 66.55 -15.50 -18.89 2601342
PC JEWELLER 48.20 -9.20 -16.03 6647224
RELIANCE CAPITAL 70.80 -5.75 -7.51 3475617
JP ASSOCIATES 3.43 -0.26 -7.05 1988202
TEJAS NETWORKS 156.50 -11.05 -6.60 13721
» More on Top Losers

Heatmap: S&P BSE Sensex


Nifty sectoral indices at close


Market at close

The S&P BSE Sensex ended at 38,960.79, down 491.28 points while the broader Nifty50 index settled at 11,672.15, down 151.15 points.

Nifty Metal index dips 3%; Jindal Steel, Tata Steel, SAIL down over 5%

Shares of metal companies, mainly steel, were under pressure, with Nifty Metal index slipping nearly 3 per cent on the National Stock Exchange (NSE) amid trade tension and weak data from China. Jindal Steel and Power (JSPL), Steel Authority of India (SAIL), Tata Steel, JSW Steel and Vedanta were down in the range of 3 to 6 per cent on the NSE. READ MORE


Reliance Industries extends losses, slips 2.2%


Sectoral trends on NSE at this hour

- All sectoral indices are trading over 1% lower, except Nifty metals which is down over 2%


Top gainers and losers on S&P BSE Sensex at this hour


Market check


Market check


Pick of the Week | Anand Rathi Financial Services

Larsen & Tourbro

Rating: Buy
 
Target P rice: Rs 1,820
 
Share Price: Rs 1,514

L&T is the undisputed market leader in India’s capital goods and construction space. The likely recovery of India’s capex cycle, especially infra and hydrocarbon, would benefit L&T substantially with double digit revenue growth and faster order book expansion.

Infra capex investments in roads, railways, urban infrastructure and airports is likely to see strong push, post elections. L&T has strong revenue visibility on back of healthy infra order book. We believe that roads, railway electrification and metro projects will continue to show strong execution. The erstwhile Central Government strong yl focused on infra developments, esp y ecially roads, bridges, urban infrastructure and of late railways. Re-election of the same government in 2019 general elections suggests that the same thrust would continue and little time would be lost in re-prioritization and realignment of the operating framework. Consequently, tendering and ordering are likely to revive from H2FY20 with renewed thrust on railway electrification and road construction.

NEWS ALERT | Bahrain based Batelco extends partnership with Tata Communication

-  Partnership to offer flexible and reliable data connectivity with expanded global reach

(Source: BSE filing)

Airtel Africa's London IPO set at 80-100 pence per share; to mop up $750 mn

Bharti Airtel Monday announced the price range of its Africa business IPO on the London Stock Exchange at 80-100 pence per ordinary share, through which the company expects to raise $750 million (approximately Rs 5,236 crore). "The price range for the offer has been set at 80 pence to 100 pence per ordinary share, implying a market capitalisation on admission of between 3,007 million and 3,623 million pounds (approximately USD 3,788 million-4,565 million)," Airtel Africa said in a London Stock Exchange filing. READ MORE



HDFC Securities on Orient Cement

RECO: Buy
 
SEQUENTIAL TARGETS: Rs 122.5-Rs 131 Rs 88
 
TIME HORIZON: 3-4 quarters
 
Orient Cement is on the cusp of accelerated earnings growth after a stressful period due to operational lull and high financial leverage on books. Demand growth for cement in Southern India has now picked up and is expected to sustain well for the coming fiscals; this is helping players improve their utilisations. Also, the net sales realisations has now improved with realisations moving northwards / staying high in the past 4 months. Apart from these growth levers, we can expect a better margin profile for OCL due to the new railway siding project near its Chittapur plant and WHRS captive power arrangements at two of its plants. Margins may expand on account of company’s efforts to improve its realisations from the superior quality cement it introduced in Q1FY19.
 

Market check | Nifty50 slips below 11,700 intra-day


Buzzing | PC Jeweller slips over 13% in trade


Lupin, Divi's Lab, Aurobindo Pharma: Here's how you can trade pharma stocks

Nifty Pharma: The index is trading around 52-week low of 7900, which suggests a negative sentiment going ahead. The weekly chart in the month of August 2018 showed a trend line breakout that resisted at 200-weekly moving average (WMA) at 10,730. Thereafter, the index has been weak and profit booking has happened at regular intervals. It did try to reverse trend in March 2019 but witnessed selling pressure around 9600 levels. As index dips lower, selling pressure can intensify. READ MORE



NEWS ALERT | DCC seeks Trai's view to revise penalty amount: PTI

Alert: DCC is Digital Communications Commission

       : Airtel, Vodafone-Idea were fined  for allegedly denying Reliance Jio Infocomm adequate points of interconnection (PoIs) in 2016 
 
 

India's bond rally could stall as investors worry about govt's fiscal math

The 10-year yield will stay close to current levels at 6.98% by end of June, according to a Bloomberg survey, bringing an end to the slide of about 50 basis points over the past six weeks. Yields have tumbled as the Reserve Bank of India cut interest rates, Prime Minister Narendra Modi won a thumping election victory and slowing global growth spurred a global debt rally. READ MORE

Jain Irrigation is trading 4.7% lower


Vodafone Idea slips over 2% in trade


Nifty PSU Bank index is trading over 1 per cent lower


Pick of the Week by HDFC Securities


NEWS ALERT | ICICI Bank moves NCLAT against JP Associates' case: CNBC TV18

- Seeks expedition of case 

- NCLAT to hear plea on July 1

NEWS ALERT | ICICI Bank asks NCLAT to fast-track JP Associates' case: CNBC TV18

- Says, case pending at Allahabad NCLT bench for 9 months

- Case being played into promoters hand 

- Accuses company of creating legal hurdles, delaying IBC process 

Market check


MARKET COMMENT | Kotak Securities on WPI inflation print

WPI inflation continues to decline. Decline in WPI inflation in May was driven by moderation in core and fuel inflation even as food prices continued to inch higher. With growth and CPI inflation expected to remain benign in the near term, we continue to believe that the MPC would cut the repo rate by 25 bps in August. Further cuts would hinge on how the growth and inflation mix evolves. As per our base case, upside risks to food inflation in 2HFY20 could limit rate cuts beyond August.

NEWS ALERT | Two operational creditors have already moved NCLT: BTVi

Alert : NCLT Mumbai to hear operational creditor plea on June 20

NEWS ALERT | NIIF, Mubadala unwilling to buy Jet Airways' stake at Rs 150/Sh: sources to BTVi

- Steep haircut likely key reason for lenders deciding to send Jet Airways To NCLT
 
- Lenders unwilling to sell stake at current share price

Market check | Broader markets underperform, slip over 1%


MARKET CHECK


Auto stocks trade under pressure

COMPANY LATEST(RS) CHG(RS) CHG(%) VOLUME
ASHOK LEYLAND 85.30 -2.35 -2.68 488542
TATA MOTORS 160.75 -3.35 -2.04 368942
TATA MOTORS-DVR 78.05 -2.45 -3.04 152442
ESCORTS 547.45 -13.00 -2.32 53877
MARUTI SUZUKI 6663.95 -67.80 -1.01 20703

Jet Airways slips for eleventh straight session, down 16% on BSE

Shares of Jet Airways (India) continued to reel under pressure for the eleventh straight session to hit fresh lows during the intra-day trade on Monday. The stock was down 16 per cent to Rs 68.65 apiece on the BSE ahead of the lenders' meeting later in the day to decide rescue plan for the cash-strapped airline. The stock has tanked 53 per cent thus far in June, as compared to 1 per cent decline in the S&P BSE Sensex. READ MORE



Piramal sells entire stake in Shriram Transport for Rs 1,000-1,015 a share

Piramal Enterprise Ltd (PEL) has sold its entire 9.96 per cent stake in Shriram Transport Finance (STFC), the NBFC arm of Chennai-based Shriram Group. PEL has been looking to exit from the Shriram group of companies, including STFCS, Shriram City Union and Shriram Capital. Sources said Piramal has just started the exit process after STFC, it will sell stake in SCUF and Shriram Capital. READ MORE



Stocks that hit 52-week low on S&P BSE Sensex

COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%)
BAYER CROP SCI. 3459.45 3459.45 -55.30 -1.57
BIOCON 247.15 245.10 -1.75 -0.70
BOMBAY BURMAH 1080.05 1078.20 -26.60 -2.40
CENTRAL BANK 22.90 22.50 0.10 0.44
CENTRUM CAPITAL 26.20 26.20 -0.80 -2.96
» More on 52 Week Low

Stocks that hit 52-week low on S&P BSE Sensex

COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%)
BAYER CROP SCI. 3459.45 3459.45 -55.30 -1.57
BIOCON 247.15 245.10 -1.75 -0.70
BOMBAY BURMAH 1080.05 1078.20 -26.60 -2.40
CENTRAL BANK 22.90 22.50 0.10 0.44
CENTRUM CAPITAL 26.20 26.20 -0.80 -2.96
» More on 52 Week Low

Adani Power is trading 3.9% lower


NDTV tanks 8% after Sebi bars Prannoy, Radhika Roy from securities market

Shares of New Delhi Television (NDTV) skid 8 per cent to Rs 32.10 during the early morning trade on the BSE on Monday, after markets regulator the Securities and Exchange Board of India (Sebi) banned the group chairman Prannoy Roy and director Radhika Roy from assessing the capital market for two years. The stock of broadcasting & cable TV operator was trading close to its 52-week low of Rs 31.05 touched on July 24, 2018 on the BSE in intra-day trade. READ MORE



Shriram Transport slides 8% after Piramal Enterprises sells entire stake

Shriram Transport Finance Company shares dipped 8 per cent to Rs 1,000 in morning deal on the National Stock Exchange (NSE) on Monday after Piramal Enterprises sold its entire 9.96 per cent stake in the company through open market. "Piramal Enterprises sold 9.96 per cent or 22.6 million equity shares of Shriram Transport Finance Company to third party investors on the floor of the stock exchange," Piramal Enterprises said in a regulatory filing. READ MORE



Illustration by Ajay Mohanty

Prabhudas Lilladher on Maruti

NEWS ALERT | Will do everything to take opposition on-board in all the discussions: PM Narendra Modi ahead of 17th Lok Sabha

- He said, democracy gets stronger if the Parliament functions properly.. Fruitful debate is need of the hour. The country will have eyes on the new Parliamentarians, expect their active participation.

Eros Media continues slide, slips 5%


Market check | Markets trading near day's low


Market check | Sensex slips over 200 pts


SECTOR WATCH :: Banks

COMPANY NAME LATEST HIGH LOW CHG
(rs)
CHG(%) VALUE
(rs CR)
VOLUME
YES BANK 115.80 118.30 113.80 0.45 0.39 19.82 1711780
PUNJAB NATL.BANK 76.90 77.45 76.40 0.35 0.46 2.62 340427
IDBI BANK 35.55 35.90 35.40 -0.35 -0.97 0.77 216650
BANK OF BARODA 118.90 119.95 117.75 -0.10 -0.08 2.36 198644
UNION BANK (I) 73.50 74.00 72.45 0.80 1.10 1.32 179104


Click here for the full list

Reliance Infrastructure auditors say unable to give view on annual results

Anil Ambani-promoted Reliance Infrastructure reported a net loss of Rs 3,301 crore for the quarter ended March 2019 compared with a net profit of Rs 134 crore in the corresponding period last year. The firm's auditors said they were unable to give an audit opinion on the annual results and also raised doubts about the company and some of its subsidiaries' ability to continue as a going concern READ MORE HERE


Rabobank International on expectations from US Fed

The escalation of the US-China trade war and the resulting turmoil in financial markets has finally opened the Fed’s eyes that the hiking cycle is over and that the next move should be a rate cut.
 
With the lack of progress in the US-China trade negotiations, the weak Employment Report for May and disappointing inflation data the FOMC now has all it needs to make an insurance cut. However, they may prefer to wait until after the G20 meeting before pulling the trigger. Therefore, we expect an insurance cut in July.

TOP LOSERS :: BSE 500

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
JET AIRWAYS 71.30 -10.75 -13.10 627069
PC JEWELLER 50.45 -6.95 -12.11 2885706
RELIANCE INFRA. 54.35 -4.95 -8.35 1232237
JAIN IRRIGATION 33.85 -3.00 -8.14 490291
JP ASSOCIATES 3.46 -0.23 -6.23 686446
» More on Top Losers

BUZZING STOCK | Reliance Infra hits over 28-year low as auditors raised concern over biz

Thus far in June, the share price of RInfra has tanked 49 per cent from the level of Rs 104, as compared to a one per cent decline in the S&P BSE Sensex.
 
The company had reported a net loss of Rs 3,301 crore in the fourth quarter of 2018-19 (Q4FY19), its biggest ever, one-time expenses of Rs 8,481 crore. The exceptional expense was related to defence business impairment, invocation of pledged shares, and loss at its power subsidiary, according to the company. READ MORE

IIFL on GAIL

Outlook on GAIL’s key businesses is mixed: while the core gas transmission and marketing business offers good visibility (tariff finalisation + weak outlook on LNG), the commodity businesses (LPG and polymers) are on weak wicket. We factor in tariff revisions and prevailing commodity prices to cut GAIL’s FY20/21ii EPS by ~7.5%. The stock after correction offers a good play on gas markets India, but lacks immediate trigger.

IIFL on Persistent Systems

In the long term, a more integrated organisational structure with low attrition, mining customers via cross-sell, and developing partner ecosystems would be the main focus areas. We forecast USD revenue/EPS Cagr of 7%/15% over FY19-21ii; while we came back incrementally positive from the Meet, we believe earnings predictability needs to improve for re-rating. Maintain ADD.

Edelweiss on Hexaware

Mobiquity, a customer experience consulting firm specialising in providing multichannel digital experiences, looks like an exciting acquisition with 20% plus revenue CAGR and is reasonably valued given its $70mn revenue and margin. However, we would prefer more clarity on execution side of the business before we reassess Hexaware’s ratings. Maintain ‘HOLD’ with target price of Rs 360

MAYBANK KIM ENG VIEW :: DCC approves 5G trial rules

We believe this is positive for telcos as spectrum pricing may be recommended lower. The Digital Communications Commission (DCC) has asked the Telecom Regulatory Authority of India (TRAI) to review its recommendations on spectrum pricing and the quantum of spectrum that can be auctioned. The TRAI had earlier recommended 5G spectrum price of Rs 4.92b per Mhz vs Rs 1.31b in South Korea.

BHARTI believes that this price is too high whereas IDEA wants spectrum auctions to happen only in 2020. The DCC has also decided that spectrum for 5G trials will be given for one year that will be extendable, for a one-time fee of INR50b. We have HOLD on BHARTI with target price of Rs 375 and SELL on IDEA with target price of Rs 12

Market outlook: Sensex, Nifty trend appears weak. It's time to be cautious

A rise in the Nifty has been used for squaring longs and shorting stocks. The medium-term support of 11,550 - 11,500 should act as a range for a bounce. READ MORE:


Vedanta down 2%


Motilal Oswal Financial Services on Godrej Consumer

While the stock price is down nearly 30% from its peak, there is yet no clear indication that earnings slowdown (7% PBT growth in the past three years) will turn around materially in FY20 to anywhere close to earlier levels. GCPL’s efforts to reduce inventory days, particularly in the African business is yet to make a substantial impact on the consolidated level. Valuations of 34.7x FY21, while cheaper than peer average, offers limited upside on considering weaker than best of breed peer earnings visibility and less than peer ROCE levels (at least currently). Maintain Neutral. 

Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
REL. COMM. 1.41 -0.06 -4.08 3216467
PC JEWELLER 50.40 -7.00 -12.20 2567174
RELIANCE CAPITAL 70.40 -6.15 -8.03 1457664
YES BANK 116.60 1.25 1.08 1128651
RELIANCE POWER 5.26 -0.16 -2.95 1099635
» More on Most Active Volume

Lupin trades lower after recalling 18,000 bottles of antibiotic drug used to treat bacterial infections from the US market


Reliance Industries down over 1.5%


Reliance Capital dips 8%


Momentum picks by ICICI Securities


NDTV slips over 3% after Sebi takes action against Prannoy Roy and Radhika Roy


Metals under pressure, Nifty metal index down over 1%


Broader markets in line with benchmarks


Market check | Sensex continues fall


Reliance Infrastructure slips over 8%


Shriram Transport Fin Co slides over 4% on 10% equity share exchange on NSE


Jet Airways plunge over 11%


Sectoral trends on NSE


Top gainers and losers on S&P BSE Sensex


Market at open


Market at open


Reliance Infrastructure slips 10% in Pre-open trade


Market at pre-open


Market at pre-open


Rupee opening

Rupee opens flat vs Friday's close of 69.80/$

UCO Bank declares Yashovardhan Birla willful defaulter for Birla Surya loan

State-owned UCO Bank has declared Yashovardhan Birla a willful defaulter for failing to pay a Rs 67.65-crore loan taken by Birla Surya Ltd., a company in which the businessman is a director.
 
Kolkata-based UCO had given Birla Surya a credit limit of ₹100 crore. The company's present balance outstanding is ₹67.65 crore plus unapplied interest from the date it turned into a non-performing asset (NPA) on June 3, 2013. READ MORE

Price of silver in comparison to gold is at a 26-year low: A buy?

The price of silver in comparison to gold is at a 26-year low. This comparison is derived by calculating the ratio of the price of gold to silver. The ratio is the amount of silver that can be bought with one ounce of gold. Currently, the ratio is at 90, the highest point since March 1993. A higher ratio indicates silver is much cheaper than gold. READ MORE



Qatar sovereign fund likely to invest $200-250 million in Byju's

Byju’s is closing a $200-250-million funding round from Qatar Investment Authority (QIA), the sovereign wealth fund of the West Asian nation, another proof of the home-grown education technology company’s growth prospects. The deal will mark QIA’s first direct investment in an Indian start-up. Sources directly familiar with the deal said the term-sheet had been signed between the two parties, and the deal will see QIA acquiring less than 5 per cent stake in the Bengaluru-based start-up. It could not be ascertained whether any of the existing investors are making secondary stake sale. READ MORE




Returns from consumption stocks could be muted, says Kenneth Andrade

As the markets now await the policies from the new government to revive growth in its upcoming Budget and corporate earnings for the first quarter of financial year 2019-20 (FY20), Kenneth Andrade, founder and chief investment officer, Old Bridge Capital Management, tells Puneet Wadhwa that the country needs fiscal consolidation before kick-starting the economy. CLICK HERE TO READ FULL INTERVIEW

NEWS ALERT | China to roll out rare earths policies soon: Reuters

- China’s state planner said on Monday it will study and roll out relevant polices on rare earths as soon as possible.

- The government resolutely opposes any attempt to use products made with China’s exported rare earths to suppress the country’s development, Meng Wei, spokeswoman for the National Development and Reform Commission(NDRC), said. 

Street signs: Fed to drive Nifty, firms defer IPOs in weak market, and more

Monsoon, US Fed to drive Nifty The Nifty moved in a narrow band and tested 12,000-point level last week, but failed to hold on to its early momentum. Analysts believe that the upside may be capped for the Nifty and the index may fall further if it fails to hold 11,800, with the next crucial support at 11,650. The market will take its cues from the progress of the US-China trade war, the outcome of the US Federal Reserve policy outcome on June 19, and the progress of monsoon this week.  READ MORE

Trade war to slowdown in demand: Margin pressure on metals to continue

The metal sector saw the sharpest fall in profitability with their margins down 1,600 basis points year-on-year in the March quarter to 23.3 per cent. The sector was a laggard even on the net profit front as falling prices and weak global demand put pressure on realisations. In addition to the fall in prices, input costs such as coking coal, as well as iron ore, remained on the higher side, leading to a double whammy on margins. READ MORE

Stocks to watch

Lupin: Drug maker Lupin is recalling more than 18,000 bottles of an antibiotic drug used to treat bacterial infections from the US market. The drug is being recalled due to a “complaint received of metal piece identified in the product bottle prior to the reconstitution," USFDA said.
 
Aurobindo Pharma: Aurobindo Pharma Limited will invest up to $200 million on Capex and over five percent of sale value on Research and Development (R&D) during the current financial year. READ MORE



Derivatives View by Angel Broking

Nifty current month future closed with a premium of 14.75 points against a premium of 30.10 points to its spot. Next month future is trading with a premium of 49.40 points.
 
As far as Nifty options activities for the week are concerned, except for some build-up in 11,900-12,000 calls, we hardly saw any relevant activity last week. Maximum open interest for coming weekly series now stands at 12,000 call and 11,800 put options.
 
During the week, we hardly saw any major build-up in Nifty as well as BankNifty futures. In fact, stronger hands too hardly added fresh positions in index and stock futures segment. They preferred lightening their existing positions in this consolidation phrase. To conclude, the week gone by has left us with no major evidence in F&O space.

At this point in time, 11,800-11,850 remains an immediate base for the Nifty; whereas, resistance is placed around the psychological mark of 12,000. At this point in time, we would advise to wait for the follow-up development in the coming week. However, we had witnessed decent activity in individual counters;
especially in the Metal counters have been showing some respite after quite some time.

Tatas to avoid big-ticket acquisitions for now, focus on debt reduction

The group will also avoid big-ticket acquisitions, preferring to grow businesses organically. This is after group company Tata Steel made big-ticket, successful acquisitions of Bhushan Steel and Usha Martin last year. “Tata Steel, Tata Motors, and Tata Power will be cutting debt in the near future,” said a senior group official. READ MORE

Market Ahead, June 17: All you need to know before the Opening Bell

Trade war will be one of the biggest factors for markets this week. India has raised tariffs on 28 items exported from the US with effect from Sunday in retaliation to America’s withdrawal of preferential access for Indian products from June 5.

CLICK HERE TO LISTEN TO OUR PODCAST

Rainfall deficiency hits 43%; monsoon progress likely in 2-3 days: IMD

By now, monsoon should have reached the central India, including parts of Madhya Pradesh, Rajasthan, eastern Uttar Pradesh and Gujarat, but it is yet to reach Maharashtra.
 
It still remains over Mangalore, Mysore, Cuddalore over the southern peninsula and Passighat, Agartala in the northeast, according to the Indian Meteorological Department. READ MORE

Commodity picks: June 17, 2019

Turmeric
 
Turmeric prices in Nizamabad are trading at Rs 6,533 per quintal. Prices are expected to trade higher towards Rs 6,650 per quintal. This is on the back of purchases at lower price levels from stockists as well as upcountry buyers. READ MORE

Lupin recalls more than 18,000 bottles of antibiotic drug in US market

Drug maker Lupin Ltd is recalling more than 18,000 bottles of an antibiotic drug used to treat bacterial infections from the US market.
 
Lupin Pharmaceuticals Inc, the US unit of the Indian company, is recalling the drug due to a “complaint received of metal piece identified in the product bottle prior to the reconstitution,” according to information on the US Food and Drug Administration, or USFDA, website. READ MORE

Karvy on Adani Ports

BUY ADANIPORTS (Jun Future) | CMP: 426.25

The stock has witnessed a secular upside move from its breakout levels of 390-392 zone on weekly chart. However, from past two weeks, the stock has been witnessing some consolidation and is trading in a tight range of 415-430 levels. Technically, the stock is placed above all its major moving averages and on oscillator front, 14 period RSI has witnessed positive crossover and is comfortably placed around 62-64 levels suggesting more upside room in the counter.

On derivatives front, the stock has seen long addition on both daily and weekly basis indicating bullishness in the counter. Hence, it is advisable to go long in
the counter keeping a stop loss placed below the support levels of 414 levels for an upside of 432 levels.

Cement production likely to grow by 5-7% in FY20, prices to remain stable

Cement production in the country is likely to remain steady with total production expected to grow by 5-7 per cent during FY20. Roads, urban infrastructure and commercial real estate are seen as the key demand drivers for cement.
 
During 2018-19, cement production grew by 13.3 per cent to 337.3 million tonne (mt) against 6.3 per cent growth in FY18, the fastest growth in production of cement recorded in one single year over the last decade. READ MORE

5G reserve price is just too high for telecom companies, say experts

As India readies for its ambitious 5G spectrum auctions, at the current base price, (which the industry finds overly expensive), analysts point out that the internal rate of return (IRR) on incremental investment will be as low as 7 per cent for the telcos. READ MORE

RBI joins peers to buy gold insurance as US-China trade war escalates

All countries have their own unique reasons, but central banks, mandated with the financial stability of their countries, are finding reassurance in the world’s oldest insurance against uncertainties — gold. READ MORE

Reliance Securities on Nifty IT index

Closing Price: 16,268 | Technical View: Bullish
 
- The information and technology sector index is in the strong up-trend from last 10 years.
 
- The index witnessed higher level profit booking post recording new high and slipped below its short-term moving average (13-week
EMA).
 
- Later strong recovery in the sector heavyweights helped the index to erase prior damages.
 
- Its key moving averages are slopping upwards and major technical indicators turned in favour of bulls, signals strength in the index.
 
- In view of the same we have upwardly revised supports and resistance points and also, change our view to bullish.

US-China trade war: 151 items of Indian exports set to gain, says research

As many as 151 items of Indian exports to China have the potential to replace identical products India’s northern neighbour imports from the US, an internal research paper of the Commerce Department has said.
 
The paper, reviewed by Business Standard, has studied the effect of the ever-escalating trade war between Beijing and Washington DC, and identified opportunities for Indian exports to China. READ MORE

Two stocks that Sameet Chavan of Angel Broking is bullish on

PI Industries
 
View: Bullish
 
Last Close: Rs 1,170.05
 
Target: Rs 1,250
 
Stop loss: Rs 1,128
 
Justification – Despite the overall broader market destruction, this stock has been maintaining its sturdy structure since a long time. On Friday also, it was clearly bucking the trend and in the process, has managed to give yet another breakout to clock fresh record highs. If we look at the volume activity, it has risen substantially; providing credence to the price development. We expect this outperformance to continue and fresh leg of the rally to unfold in days to come. Thus, we recommend buying at current levels for a target of Rs 1,250 and the stop loss should be fixed at Rs 1,128. READ MORE

Nifty outlook by HDFC Securities | Deepak Jasani, head of retail research

The Nifty is failing to sustain at higher levels and has corrected. Further downsides are likely in the coming week once the immediate support of 11,798 is broken. Any pullback rallies could find resistance at 11,912.

Short-term outlook for the market remains negative: Devang Shah

The short-term outlook for the market remains negative till Nifty trades below 12,103 and the expected target is in the range of 11,500-11,300 levels in short term. Medium-term outlook for the market remains positive till Nifty trades above 9,951 levels and the expected target is in the range of 12,800-13,200 levels in medium term. READ MORE

Weekly market outlook and top two trading ideas by Prabhudas Lilladher

Market View
 
Nifty turned down its weekly trend and with the daily trend also being down since the past seven days, it implies weakness or further selling pressure in the market. The weightage among the Nifty50 stocks is equally balanced between the positive and negative. The support for the week is seen at 38,760/11,600 for the Sensex and Nifty, respectively while resistance is seen at 40,140/12,050. Bank Nifty would have a range of 29,900-31,300. Bank Nifty now has a negative divergence on weekly chart with many front line banks getting in selling mode, a cautious view. READ MORE

Bulk deal on NSE as on Friday

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


Rupee check

Source: Bloomberg


Oil check

At 7:30 am, Brent Crude Futures were trading at $62.28 per barrel.

SGX Nifty

At 7:30 am, SGX Nifty was trading 13 points higher at 11,844 levels. 

Asian Markets check

Source: Reuters


US Market check

Source: Reuters


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