MARKET WRAP: Sensex slips 184 pts, Nifty ends at 12,022 ahead of RBI policy

Benchmark indices ended Tuesday's session with losses, weighed down by tech stocks, as investors booked profit after both Sensex and Nifty's close at heady heights in the previous session.

The S&P BSE Sensex slipped 184 points, or 0.46 per cent, to 40,084, with Hero MotoCorp, HCL Tech, TCS, Asian Paints, and IndusInd Bank leading the list of losers. Out of the 30 BSE constituents, 16 ended the day in the red.

The broader Nifty50 index slumped 67 points to 12,022. The market breadth was in favour of sellers. About 990 stocks declined and 789 shares advanced on the NSE.

Among Nifty sectoral indices, only Nifty Metal and Nifty PSU Bank indices ended the day in the green. Nifty IT took the deepest cut, down 1.56 per cent, while Nifty Media and Nifty Pharma also slipped over 1 per cent.

In the broader market, the S&P BSE MidCap index dipped 33 points, or 0.2 per cent, to settle at 15,200, while the S&P BSE SmallCap closed at 14,911, down 28 points, or 0.19 per cent.

Tuesday was the last trading day ahead of the RBI monetary policy outcome on Thursday, as the stock market will be closed on Wednesday on account of Eid-al-Fitr. Two-thirds of 66 economists polled by Reuters expect the MPC to wrap up on Thursday by cutting the repo rate by 25 basis points. READ FULL REPORT HERE

Jayant Manglik, President of Retail Distribution in Religare Broking, said a rate cut is possible, but it might not be an aggressive one.

"We continue to maintain our cautious stance on the markets at higher levels in the near term. The market participants would keep an eye on the RBI’s monetary policy (on June 6th) as it would provide further direction to the markets. While a rate cut cannot be ruled out, we don’t expect any aggressive cut and believe that the RBI would await more data on monsoon progress and inflation," Manglik said.

"Domestic macro data, global developments, especially with respect to US-China trade talks and movement of crude oil prices would continue to be on investor’s radar," he said.

BUZZING STOCKS

Shares of GE Power India surged 5 per cent to Rs 930 on the BSE on Tuesday in early morning trade, after the company announced winning a contract worth Rs 738 crore from Aravali Power Company Private Limited. Aravali Power Company Private Limited is a Joint venture company of NTPC, Haryana Power Generation Company and Indraprastha Power Generation Company. The stock ended the day 2.32 per cent higher at Rs 905. READ MORE

Shares of Manappuram Finance hit a new high of Rs 141, up 5 per cent on the BSE in intra-day trade on Tuesday on the back of heavy volumes in an otherwise subdued market before ending the day at Rs 138.90, up 3.43 per cent. READ MORE


4:02 PM IST COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME JUBILANT LIFE 461.00 -28.15 -5.75 96416 DILIP BUILDCON 551.55 -29.00 -5.00 55584 MANPASAND BEVER. 46.45 -2.40 -4.91 17195 INDIA CEMENTS 102.10 -5.20 -4.85 1063766 INDIAN BANK 274.20 -13.20 -4.59 363326 » More on Top Losers

4:00 PM IST

3:59 PM IST

3:59 PM IST

3:32 PM IST The S&P BSE Sensex ended at 40,084, down 184 points while the broader Nifty50 index settled at 40,083, down 51 points.

3:19 PM IST

2:59 PM IST

2:58 PM IST The market is expensive now and will continue to remain so: Naveen Kulkarni Which sectors will benefit in the near-term, now that elections and earnings are over?  Banking, infrastructure, cement, and quality mid and small caps are expected to provide good returns to investors. Among small-caps, we expect Sonata Software to do well among the information technology (IT) pack. Under the infrastructure we are betting on HG Infra and among cement stocks we likeJK Lakshmi and JK Cements. READ MORE HERE

2:56 PM IST

2:56 PM IST Tyre manufacturers in India have been gearing up for aggressive capacity expansions as demand has been robust across segments and tyre companies’ utilisation levels have already reached peak levels. As a large part of the capex would be debt-funded, India Ratings and Research (Ind-Ra) expects the credit metrics of tyre companies to remain high over FY19-FY21 (industry net leverage to stay above 2.5x-3.0x). However, once the capex is completed, the metrics of tyre companies improve substantially over the subsequent two years, supported by the gradual ramp-up of the new capacities. Nonetheless, a prolonged slowdown in auto demand could delay the deleveraging process, thereby exacerbating the downside risks for tyre manufacturers

2:54 PM IST The outlook for India's moribund property market has brightened somewhat, with house prices this year expected to rise more than predicted three months ago, but those increases will still be the weakest in at least a decade, a Reuters poll found.   Until 2015, India's annual property price growth had typically been in the double digits. However, more recently a ban on high value currency notes and a liquidity shortage driven by bad debts on banks' balance sheets have led to a cooling in lending and a housing inventory pile-up READ MORE HERE  

2:50 PM IST In the last one month, the stock has surged 64 per cent after the company announced 1:1 bonus and reported record quarterly profit of Rs 85 crore in March quarter of the financial year 2018-19 (Q4FY19). In comparison, the S&P BSE Sensex was up 3.3 per cent during the period. READ MORE

LIVE UPDATES

Top losers on BSE500

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
JUBILANT LIFE 461.00 -28.15 -5.75 96416
DILIP BUILDCON 551.55 -29.00 -5.00 55584
MANPASAND BEVER. 46.45 -2.40 -4.91 17195
INDIA CEMENTS 102.10 -5.20 -4.85 1063766
INDIAN BANK 274.20 -13.20 -4.59 363326
» More on Top Losers

Heatmap: S&P BSE Sensex


Sectoral indices at close


Market at close


Market at close

The S&P BSE Sensex ended at 40,084, down 184 points while the broader Nifty50 index settled at 40,083, down 51 points.

YES Bank rises 2.6%, top gainer in S&P BSE Sensex


HEAT MAP :: BSE Sensex


INTERVIEW OF THE DAY :: Naveen Kulkarni of Reliance Securities

The market is expensive now and will continue to remain so: Naveen Kulkarni
Which sectors will benefit in the near-term, now that elections and earnings are over? 
Banking, infrastructure, cement, and quality mid and small caps are expected to provide good returns to investors. Among small-caps, we expect Sonata Software to do well among the information technology (IT) pack. Under the infrastructure we are betting on HG Infra and among cement stocks we likeJK Lakshmi and JK Cements. READ MORE HERE

Market check | Sudden fall in Sensex


SECTOR WATCH :: TYRES

Tyre manufacturers in India have been gearing up for aggressive capacity expansions as demand has been robust across segments and tyre companies’ utilisation levels have already reached peak levels. As a large part of the capex would be debt-funded, India Ratings and Research (Ind-Ra) expects the credit metrics of tyre companies to remain high over FY19-FY21 (industry net leverage to stay above 2.5x-3.0x).

However, once the capex is completed, the metrics of tyre companies improve substantially over the subsequent two years, supported by the gradual ramp-up of the new capacities. Nonetheless, a prolonged slowdown in auto demand could delay the deleveraging process, thereby exacerbating the downside risks for tyre manufacturers


Despite rate cuts, India's moribund housing market stuck in low gear: Poll

The outlook for India's moribund property market has brightened somewhat, with house prices this year expected to rise more than predicted three months ago, but those increases will still be the weakest in at least a decade, a Reuters poll found.
 
Until 2015, India's annual property price growth had typically been in the double digits. However, more recently a ban on high value currency notes and a liquidity shortage driven by bad debts on banks' balance sheets have led to a cooling in lending and a housing inventory pile-up READ MORE HERE



 

Avadh Sugar & Energy hits 52-week high, jumps over 100% in four months

In the last one month, the stock has surged 64 per cent after the company announced 1:1 bonus and reported record quarterly profit of Rs 85 crore in March quarter of the financial year 2018-19 (Q4FY19). In comparison, the S&P BSE Sensex was up 3.3 per cent during the period. READ MORE

IFIN violated RBI norms to help Sivasankaran pay off IFCI loan: SFIO

Senior management of Infrastructure Leasing & Financial Services (IL&FS) violated several Reserve Bank of India (RBI) norms laws to help Chennai-based C Sivasankaran pay off IFCI's loan when he was already a defaulter to IFIN (a subsidiary of IL&FS), the Serious Fraud Investigation Office (SFIO) has alleged. READ MORE
 

Expectation from RBI Policy meeting | Elara Capital

We expect Monetary Policy Committee to cut repo rate by 50-75bp and CRR by 25-50bp in FY20E to address the growth slowdown while continuing to infuse liquidity through a mixture of open market bond purchases, cut in cash reserve ratio (CSR) and forex swaps.
 
 ​

Sobha Limited gains 5.6%


Gold check

Source: Bloomberg


Crude check

Source: oilprice.com


Elara Capital on Shalby

Rating: BUY
 
Target Price : Rs 180

We cut our EBITDA by ~9% each for FY20E and FY21E. The company has one of the most scalable healthcare models, with focus on orthopedics, which draws ~60% of revenue. Steady growth across its two flagship hospitals along with scalability in new hospitals should result in an 18% sales CAGR and a 27% EBITDA CAGR over FY19-21E. Moreover, zero net debt would bolster growth. It currently trades at 10x FY21E EV/EBITDA, which we believe is compelling. We reiterate Buy with a TP of INR 180 from 200 on 15x (unchanged) FY21E EV/EBITDA. 

 
 

Sectoral trend on NSE


India Cements slips over 4%


COMMENT :: Shishir Baijal, chairman & managing director, Knight Frank India

With the recent Q1 2019 GDP growth rate numbers, announced on May 31, 2019, being at a 5-year low of 5.8%, unemployment rate inching up over 6%  and the inflation rates being under 2.5%, Monetary Policy Committee (MPC) has a clear opportunity to lower policy rates to stimulate growth in the Indian economy. The beleaguered real estate sector will look forward to these relaxations in the key policy rates with the hopes that these will provide the needed fillip to end user demand.
 
We, therefore, hope that the MPC takes the decision to further reduce the REPO and reverse REPO rate by 50 BPS bringing it down to 5.5% and 5.25% respectively. This will help in liquidity injection in the economy and help revive the currently stalled credit cycle, increase broad-based investments, give a fillip to consumption expenditure, and the benefit will likely percolate from banks to the Non-Banking Financial Companies (NBFC). In turn, stalled sectors like real estate may be able to get better credit access

Religare Enterprises gains 5.6%


Mutual Fund snapshot

In May 2019, Focussed Funds led the list of Mutual Fund categories with a AUM-weighted return of 3.05%, followed by Small Cap Funds with a return of 2.52%. Large Cap Funds delivered a return of 2.15%.
 
Out of the 205 open-ended equity diversified funds, about 62% of the funds (or 127 schemes) were able to outperform their respective benchmarks over the past one month, ended May 31, 2019. This again was an improvement over the previous month, where only 51% of the schemes were able to beat their benchmarks. Out of the 29 Large Cap Funds, as many as 20 schemes outperformed the S&P BSE 100 – TRI. 
 
On a 1-year basis, many equity schemes were found struggling against the benchmark. Just 28% or 57 schemes out of 205 equity funds were able to beat their benchmark over the past year. Just four schemes (or 11%) out of the 36 Equity Linked Savings Schemes managed to outperform their benchmark – the S&P BSE 200-TRI.

(Source: Prabhudas Lilladher report)
 

FPI inflows into equity markets till May 2019 is the best in six years

Foreign portfolio investor (FPI) flows to the equity market till May 2019 have been the best in the past six years. Till May 2019, FPIs have pumped in nearly $11 billion on expectation of more business-friendly measures and continuity in ongoing policies post the outcome of the general elections. And their bet proved correct with the Narendra Modi – led National Democratic Alliance (NDA) winning the 2019 general election with a thumping majority. FPIs remained net buyers for the fourth straight month in May. READ MORE



Sectoral trends on NSE


Top gainers and losers on S&P BSE Sensex


Market check


Market check | Sensex sees recovery


Buzzing | Jubilant Life Sciences slips over 4% in trade


The market is expensive now and will continue to remain so: Naveen Kulkarni

A stable government is liked by markets. In this backdrop, it is safe to assume that the overall market volatility is likely to go down. However it is not going to be a runaway market. We might see the markets going up, consolidating a bit and then charging back. While global volatility continues to pose as threat, stable domestic political environment is likely to act as a cushion against it. READ MORE
Naveen Kulkarni, Head of Research, Reliance Securities

ALERT :: India’s first trade in interoperability framework done on MSE’s equity cash segment

Marking the entry of Indian stock exchanges and clearing corporations into the league of global modern exchanges, the long-pending interoperability framework was implemented from today with the successful completion of first trades. The first trade went live today with MSE’s Equity cash segment to be settled through BSE’s ICCL and other MSE trades getting settled through Metropolitan Clearing Corporation of India Limited (MCCIL)

“Interoperability will bring down cost of clearing substantially for members with netting benefits, bring efficiency in margins, collateral, clearing and settlement, while bringing down the systemic risk,” said Devika Shah, MD & CEO, ICCL
 
 

Buzzing | Goa Carbon gains over 7%


Anand Rathi Financial Services on Mayur Uniquoters

Recommendation: Buy
 
Target Price: Rs 396
 
Share Price: Rs 300
 
Tough in-line, lower volumes (down ~6% y/y) and higher input costs (which could not be fully passed on due to stiff competition across segments) pulled down Mayur’s Q4 revenue/EBITDA/PAT 9%/22%/ 18% y/y. We broadly maintain our estimates and expect revenue/PAT to clock 18%/17% CAGRs over FY19-21. The RoE/RoCE are expected at ~18%/27% (vs. 30%+/40%+ before FY16). On the recent fall in the stock price, we upgrade it to a Buy with a lower target of `396 (15x FY21e P/E), earlier `432. Considering the declining return ratios and risks of Mayur’s success in the new PU business, we assign a lower target multiple than in the last five years (22x). Margins and growth across verticals are key monitorables.

EXPERT VIEW | Expectations from MPC meet by Parth Mehta, MD, Paradigm Realty

The GDP rate in Q4FY2019 nose-dived to 5.8% against 6.6% (in Q3FY2019) and 8.1% (IN Q4FY2018) resulting in overall GDP growth rate to trickle down to 6.6% (FY2019) primarily due to the domino effect of NBFC crisis. The consumption finance has taken a beating with NBFC’s struggling to raise money via Banks or Commercial papers thus accentuating the liquidity freeze. Private investments, too, were lackluster because of election putting breaks to investment cycles. Fiscal deficit, too, is at 3.4% of GDP giving thin headroom for any great fiscal impetus like lower corporate tax rates. All the recent indicators have been dismal like Unemployment rate standing at 45 year high of 7.8% in urban and 5.3% in rural in FY18, auto industry undergoing 10th consecutive month of sales decline in 15.9% in April YOY worst in eight years. Only silver lining is 2.5% CPI and crude prices in desirable range which shall enable the MPC to undertake aggressive rate cuts to the tune of at least 50BPS to boost the investment cycle, consumer spending and revive the economy.

Asian Paints slides 2.3%


MARKET CHECK


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

COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%)
HERITAGE FOODS 402.00 388.00 10.85 2.77
JUBILANT LIFE 471.30 467.25 -17.85 -3.65
MANPASAND BEVER. 46.45 46.45 -2.40 -4.91
» More on 52 Week Low

Monetary Policy: RBI may cut rates, turn 'accommodative' after dismal GDP

Beginning a three day review on Tuesday, the RBI’s six-member monetary policy committee (MPC) can draw comfort from subdued inflation. Running at 2.92 % annually in April, it has stayed below the medium term target of 4% for the past nine months. READ MORE

Despite rate cuts, India's moribund housing market stuck in low gear: Poll

The outlook for India's moribund property market has brightened somewhat, with house prices this year expected to rise more than predicted three months ago, but those increases will still be the weakest in at least a decade, a Reuters poll found.
 
Until 2015, India's annual property price growth had typically been in the double digits. However, more recently a ban on high value currency notes and a liquidity shortage driven by bad debts on banks' balance sheets have led to a cooling in lending and a housing inventory pile-up. READ MORE

PSU banks rally; Oriental Bank, Syndicate Bank up over 5% in subdued market

Shares of public sector banks (PSBs) were in focus in otherwise subdued market, with Nifty PSU Bank index gaining 2 per cent on the National Stock Exchange (NSE), as bond yields fell ahead of Reserve Bank of India (RBI's) monetary policy decision. The 10-year government bond yield ended below 7 per cent for the first time since November 2017, which can provide cushion for treasury income in Q1FY20. READ MORE



Shunned at home, India's shadow banks are paying more for foreign funds

The country’s non-banking financial companies have raised more than $2 billion of overseas bonds and loans in 2019, a record compared with the same period in previous years, according to data compiled by Bloomberg. The lifeline is welcome, even as it underscores a scramble after a string of defaults by peer IL&FS Group last year made investors wary. READ MORE

Wipro is the only gainer among IT pack, rises over 1%


Tata Global Beverages rises 4.7%


Manappuram Finance hits fresh all-time high; surges over 50% in 2019

Shares of Manappuram Finance hit a new high of Rs 141, up 5 per cent on the BSE in intra-day trade on Tuesday on the back of heavy volumes in an otherwise subdued market. The stock surpassed its previous high of Rs 139 recorded on May 24. At 09:54 am, the S&P BSE Sensex was down 0.10 per cent at 40,225 points. The counter has seen huge trading volumes with a combined 5.45 million shares changing hands so far, as compared to around 5 million shares that were traded daily in past two weeks on the BSE and NSE. READ MORE



Public sector banks trade higher

COMPANY NAME LATEST HIGH LOW CHG
(rs)
CHG(%)
PUNJAB NATL.BANK 83.55 83.90 81.45 1.55 1.89
BANK OF BARODA 134.90 135.10 131.00 3.30 2.51
UNION BANK (I) 80.35 80.80 76.05 3.75 4.90
BANK OF INDIA 98.25 98.40 94.75 3.05 3.20
ORIENTAL BANK 105.05 105.50 97.75 6.70 6.81
SYNDICATE BANK 37.80 37.90 35.65 1.85 5.15
ST BK OF INDIA 356.80 357.15 353.00 1.90 0.54
CANARA BANK 279.80 280.10 271.20 7.75 2.85
ALLAHABAD BANK 46.10 46.20 44.50 1.60 3.60
INDIAN BANK 290.90 292.35 283.95 3.50 1.22

Momentum picks by ICICI Securities


IDBI Bank gains over 8%


NEWS ALERT | Australia’s central bank cut its interest rate to 1.25%: Reuters

- The Reserve Bank of Australia (RBA) lowered rates for the first time in three years.

- Rate decision being seen as the first step to revive the country’s slowing economy.

- Interest rate at record lows

Cement stocks trade under pressure

COMPANY NAME LATEST HIGH LOW CHG
(rs)
CHG(%)
INDIA CEMENTS 105.95 109.20 105.80 -1.35 -1.26
UDAIPUR CEMENT 16.05 16.30 15.50 -0.25 -1.53
AMBUJA CEM. 235.25 237.85 234.10 -1.55 -0.65
PRISM JOHNSON 99.50 101.15 99.40 0.10 0.10
ACC 1711.70 1736.75 1707.10 -13.25 -0.77
CENTURY TEXTILES 1053.45 1060.00 1044.00 -3.70 -0.35

Top gainers (BSE 500)

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
PHILLIPS CARBON 153.55 7.60 5.21 61198
GE POWER 923.50 39.00 4.41 3333
MANAPPURAM FIN. 139.75 5.45 4.06 133208
CAPLIN POINT LAB 446.00 15.65 3.64 4534
SUZLON ENERGY 5.63 0.16 2.93 249231
» More on Top Gainers

Fitch downgrades ICICI Bank's IDR to 'BB+'; outlook stable

Fitch Ratings has downgraded ICICI Bank Limited's Long-Term Issuer Default Rating (IDR) to 'BB+' from 'BBB-' and its Viability Rating to 'bb+' from 'bbb-'. The Outlook on the IDR is Stable. Fitch has also affirmed ICICI's Support Rating at '3' and Support Rating Floor at 'BB+'. A full list of rating actions is at the end of this commentary. 
 
The rating actions come amid the challenges the bank faces in its operating environment. Fitch lowered its midpoint for India's operating environment to 'bb+' from 'bbb-' following a review of the banking sector's performance, particularly in the last three years, and its regulatory framework, as well as the outlook in the near term.


Top fundamental picks from Emkay Global

■    Large-Caps (OW) - Axis Bank, Bajaj Finance, Cipla, HCL Tech, ICICI Bank, Larsen and Toubro, Mahindra & Mahindra, Marico, SBI Life, Tata Steel, and United Breweries
 
■    Large-Caps (UW) - Ashok Leyland, Bharti Airtel, Eicher Motors, ITC, United Spirits, and Yes Bank
 
■    Small & Mid-Cap (Buys) - APL Apollo, Cholamandalam Finance, City Union Bank, Exide Industries, Granules India, Mphasis, Radico Khaitan, Sterlite Technologies, Sunteck Realty, and Varun Beverages

Jefferies on auto sector

Auto wholesales were down YoY across all segments in May with MHCVs, PVs & tractors worst hit reporting 17-27% YoY decline. 2w, LCVs and 3w performed better with single digit YoY decline. Within 2w, Suzuki and Bajaj continued to outperform with positive growth while sales declined 4-8% for TVS and Hero. With dealer stock still high at 45-50 days though, inventory correction is likely to continue for Hero & Bajaj. AL sharply outperformed Tata Motors in MHCVs.

Result review: Media & entertainment sector

Our media universe’s Q4FY19 revenue and EBITDA grew 9.8% and 11.7% YoY, respectively (Q3FY19: 12.6% and 17%). Multiplexes (PVR) spearheaded growth riding robust response to content, followed by broadcasters (ZEE, SUN TV)—posting double-digit growth despite disruption. Elections were conducive for print players (DB Corp, Jargan Prakashan), especially the rate hike, enabling margin expansion after three quarters. DTH/cable and broadband companies, however, faced headwinds from tariff regime disruption, ARPU volatility and increased competition from OTTs as well as each other. Model media portfolio—PVR (50%), ZEE (30%) and SUN TV (20%)

(Source: Edelweiss Research)

Nifty Realty index is trading 1.4% higher


Oriental Bank of Commerce becomes the highest gainer among PSU Banks


Broader markets performing better than the benchmarks in the early trade


GE Power zooms nearly 5%

- The company bagged a contract worth Rs 738 crore from Aravali Power Company.


ICICI Bank mildly lower on ratings downgrade by Fitch


Tata Global Beverages among early gainers


Manappuram Finance gains over 3% in trade


Nifty IT index slips 1%


Sectoral trends on NSE


Top gainers and losers on S&P BSE Sensex


Market at open


Market at open


Pre-opening gainers and losers on S&P BSE Sensex


Market at pre-open


Rupee opening

Rupee opens stronger at 69.15/$ vs Monday's close of 69.25 against the US dollar

Market at pre-open


Bull market doesn't bode well for bourses' stocks; MCX sheds over 4%

The BSE Sensex may be at an all-time high of 40,000 and likewise trades at the Multi Commodity Exchange (MCX) may have picked up sharply in the past year, but not all of this is reflecting in the underlying stocks of the BSE or the MCX. With the National Stock Exchange (NSE) neck-deep in litigation, stocks of the BSE and the MCX (given NSE’s acquisition plans) were set to benefit from the same about a month back. READ MORE

India's GDP to exceed $3 trillion; to become 5th largest economy in 2019

In a report on Prime Minister Narendra Modi and his BJP party's victory in the national elections, IHS Markit said the economic outlook "looks positive" for the second term of Modi government, with GDP growth forecast to average around 7 per cent per year over the 2019-2023 period. READ MORE

Ashok Leyland sells more than 13,000 units in May, total sales dips 4%

Hinduja Group flagship firm Ashok Leyland Monday reported a four per cent decline in total sales to 13,172 units in May.
 
The company had sold 13,659 units during the corresponding month last year, Ashok Leyland said in a statement. Sales of medium and heavy commercial vehicles in May declined by 14 per cent to 8,946 units as against 10,421 units in the year-ago month. READ MORE

Stocks to watch

ICICI Bank, Axis Bank: Global rating agency Fitch said Monday it has downgraded two leading private sector lenders ICICI Bank and Axis Bank as the banking sector of the country remains under stress. The performance of India's banking sector is expected to be below-average over the next one to two years despite high growth prospects, it said.
 
Dr Reddy's: Dr Reddy's Laboratories said Monday it has re-launched its generic Zenatane capsules in the US market. The product is being launched with an approved Risk Evaluation and Mitigation Strategy (REMS) Program, the company said. READ MORE



L&T promoters to offload 4.03 million LTTS shares on June 4 and 6

Larsen & Toubro Technology Services (LTTS) Monday said its promoter L&T plans to sell 4.03 million shares on June 4 and 6.
 
LTTS in a BSE filing said that L&T will sell up to 40,34,399 equity shares of face value of Rs 2 each that represent 3.88 per cent of the total paid up equity share capital. READ MORE
 

Fitch downgrades ratings for Axis Bank and ICICI Bank to BB+ from BBB-

Global rating agency Fitch Ratings has downgraded ICICI Bank and Axis Bank’s Long-Term Issuer Default Rating (IDR) from “BBB-“ to “BB+” and Viability Rating from “bbb-“ to “bb+”. The Outlook on the IDR is Stable.
 
The rating action in case of two Indian private banks comes after Fitch lowered its midpoint for India's operating environment to 'bb+' from 'bbb-'. READ MORE

$1-trn investments in each of next 5 years can spur GDP growth to 10%: CII

India would need over $1 trillion investments every year for the next five years if annual GDP growth is to reach 10 per cent, the Confederation of Indian Industry (CII) said on Monday while presenting its wish list to the new government led by Prime Minister Narendra Modi. READ MORE

Skymet advises farmers to delay crop sowing due to weak monsoon onset

Private weather forecaster Skymet has cautioned farmers in Maharshtra, Madhya Pradesh, Andhra Pradesh, and Telangana against early sowing of crops as the monsoon onset is going to be mild and the progress is expected to be sluggish.
 
“This caution has been extended for the simple reason that sowing of crops at this point of time, when the onset of monsoon is delayed and chances of good rains are less, will only push up the cost for farmers and also hamper the yield of the crop,” Skymet said in a statement here.READ MORE

US' withdrawal of GSP benefits from India smells of lobbyist's hand

The withdrawal of the duty-free access scheme by the US, a day after Prime Minister Narendra Modi and the Council of Ministers took over for a second term, may have been owing to persuasion by the world’s largest medical device association, AdvaMed, which is lobbying for ending price controls by India, but “after elections”. READ MORE

M&M to roll out BS-VI-compliant models from Q2FY20: MD Pawan Goenka

M&M is on track with the internal cost target for the transition, said Rajan Wadhera, president, automotive sector, M&M. “My expectation is that for large vehicles – those above four metres – where we have up to 50 per cent goods and services tax (GST), a price increase of Rs 1 lakh is something that should be acceptable to customers. It should be close to Rs 80,000 for smaller diesel vehicles and for small petrol models, it should be Rs 20,000 to Rs 25,000,” said Goenka, while replying to a question on the average price hike one can expect in passenger vehicles after BS-VI. READ MORE

Spreading wings: Skies clear up for Tata group's airlines business

Five years into its aviation journey, the Tata group’s joint ventures are still far from being counted as major players in the market. Vistara and AirAsia India together have cobbled together just 9.5 per cent share of the domestic skies in the first quarter of this calendar year. READ MORE 

Prolonged dismal trend in auto demand to weigh on general insurance players

The prolonged dismal trend in auto demand is negative for the general insurance sector, given the dependence on the motor segment. According to the General Insurance Council (GIC), the motor segment — own damage (OD) and third-party (TP) — accounted for 38 per cent of gross direct premium income (GDPI) pie of non-life insurers in 2018-19 (FY19).  READ MORE

Buy fixed maturity plans only to lock in yields when interest rates peak

Fixed maturity plans (FMPs) have been in the news in recent times due to leading fund houses like Kotak Mutual Fund (MF) and HDFC MF, which had exposure to the troubled Essel Group papers, facing issues at the time of redemption. The decision by Kotak MF to redeem partially and by HDFC MF to roll over its FMP created controversy. READ MORE

Sugar industry pins hopes on Paswan for a sweetener as glut still looms

With Ram Vilas Paswan taking charge as food, civil supplies and consumer affairs minister for another term, he will have to tackle the same problems faced by the sugar industry which he attempted to resolve a year ago.
 
This time, however, he will have to tackle them differently, that is, by being WTO compliant. READ MORE

Two-wheeler sales continue downhill journey in May due to liquidity crunch

The cumulative sales of the top six manufacturers, including Hero MotoCorp, Honda Motorcycle and Scooter India, and Bajaj Auto, declined 8 per cent to 1.8 million units over the year-ago period. Amid slowing sales and unsold stock pile-up, two-wheeler makers have been curtailing despatches to their dealers. Automakers count despatches to dealers as sales. READ MORE

RBI tweaks large exposure framework for banks; NBFCs to come under scrutiny

Large exposure norms for banks were on Monday amended by the Reserve Bank of India (RBI). The move will make lending to non-banking financial companies (NBFC) more streamlined and invite scrutiny on the structure of these entities.
 
The new framework, however, also makes it possible for government entities to borrow more, as they will not be considered part of a group of connected entities. READ MORE

Derivatives strategies: Near-term Nifty target at 12,200-12,300

The Nifty has zoomed on the basis of political continuity allied to the hopes of a dovish monetary policy. The major indices hit new highs despite global and domestic bad news. The US opened new fronts in its trade war, imposing tariffs on Mexico, and rescinding India’s privilege under the GSP. READ MORE

Nifty closes above 12,000 for first time: Latest 1,000 pts take 333 days

The Nifty50 on Monday closed above 12,000 for the first time — 333 days after it achieved the 11,000-milestone. The index of blue-chip companies had first closed above 11,000 on January 23, 2018.
 
Since then, the market has been on a topsy turvy ride, with a host of global as well as domestic factors impacting the index. READ MORE

India's wealth managers buck the Asia trend with 18% asset growth

The top 20 wealth firms in India expanded their AUM by 18 per cent over the previous year to $193 billion, the report published on Monday showed. In contrast, assets at the 20 largest private banks across the whole of Asia fell 3.6 per cent as market turbulence deterred rich clients from deploying their wealth, according to an APB survey in April. READ MORE

Today's picks: From Titan to Tata Steel, hot stocks to buy on Tuesday

BPCL
 
Current price: Rs 417
 
Target price: Rs 425
 
Keep a stop at Rs 413 and go long. Add to the position between Rs 422-Rs 424. Book profits at Rs 425. READ MORE

Top trading ideas by Prabhudas Lilladher: Buy Bata India, Biocon

MARKET OUTLOOK
 
Nifty soared to an all time closing high of 12,088 with relative strength index (RSI) valued at above 66 implying further upmove. The support for the day is seen at 39,980/12,000 for Sensex and Nifty, respectively, while resistance is seen at 40,550/12,160. Bank Nifty would have a range of 31,350-31960. Market now awaits the RBI policy outcome on June 6. Banking stocks are back in new round of momentum along with auto stocks. It is still the frontline stocks enjoying the favour while mid-caps have meager participation. READ MORE

Stock calls by Anand Rathi: Buy Bajaj Finserv, CESC and OFSS

NIFTY: BUY
 
TARGET: 12,300
 
STOP LOSS: 12,020
 
Nifty closed in the positive territory in the last trading session and it has provided a breakout from the ascending triangular pattern formed on the hourly charts. The index has formed a new lifetime high and the momentum indicator MACD (moving average convergence divergence) has also provided a buy crossover on the hourly, daily, weekly and monthly charts which is quite positive going ahead. READ MORE

Bulk deal on NSE as on Monday

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


Rupee check

Source: Bloomberg


Oil check

At 7:45 am, Brent Crude Futures were trading at $61.03 per barrel. 

SGX Nifty

At 7:45 am, SGX Nifty was trading 52.50 points lower at 12,065.50 levels suggesting a weaker opening for Indian markets. 

Asian Markets check

Source: Reuters


US Market check

Source: Reuters


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