KEY HIGHLIGHTS
Net Institutional Flows
Overseas investors in Indian equities turned net buyers after three continuous days of net selling on Tuesday. This is the first net buying in the month of June so far.
Foreign portfolio investors mopped up stocks worth Rs 385.71 crore, according to data from the National Stock Exchange.
Domestic institutional investors turned net sellers after net buying for the three days in a row and offloaded equities worth Rs 489.02 crore, the NSE data showed.
10-Year Bond Yield Falls
Yield on the 10-year bond fell 2bps to 6.98% on Tuesday.
Source: Bloomberg
Rupee Strengthens Against The U.S. Dollar
The local currency appreciated 7 paise to close at 82.61 against the U.S dollar on Tuesday.
The local currency closed at 82.68 on Monday.
Source: Bloomberg
Broader Markets Outperform
The broader market indices outperformed the larger peers; the S&P BSE MidCap Index was up 0.29%, whereas S&P BSE SmallCap Index was higher by 0.42%.
Thirteen out of the 19 sectors compiled by BSE advanced, while six sectors advanced declined with S&P BSE Information Technology falling the most.
The market breadth was skewed in the favour of the buyers. About 1,999 stocks rose 1,533 declined, and 127 remained unchanged on the BSE.
Top Movers On The Nifty 50 Index
Infosys Ltd., TCS Ltd., ICICI Bank Ltd., HCDFC Bank Ltd., and HDFC Ltd. were negatively adding to the change in the Nifty 50 Index.
Whereas, Kotak Mahindra Bank Ltd., Axis Bank Ltd., UltraTech Cement Ltd., Maruti Suzuki Ltd., and Bajaj Finance Ltd. were positively contributing to the change.
Sensex, Nifty Advance For The Third Consecutive Day: Market Wrap
Indian equity benchmarks recovered from lows to end marginally higher in the last leg of trade. The indices advanced for the third day on Tuesday. While, I.T. sector led the decline; realty and auto sectors were leading in trade. Infosys Ltd. and TCS Ltd. were dragging the index, whereas Kotak Mahindra Bank Ltd. and Axis Bank Ltd. led.
Asian markets were mixed on Tuesday after Hong Kong closed lower after an initial rally. Australian shares declined after the Reserve Bank of Australia hiked its benchmark rate by 25 basis points to 4.1%.
Contracts for U.S. benchmarks declined after EPAM Systems reduced its revenue growth guidance from 3% YoY to 2% YoY for CY23.
The S&P BSE Sensex Index was up 5 points or 0.01% at 62,792.88 while the NSE Nifty 50 Index was 5 points or 0.03% higher at 18,599.90.
NHPC To Set Up 7,350 MW Energy Storage Systems For Maharashtra Government
NHPC has signed an accord with the Maharashtra government to provide them with energy storage systems of 7,350 MW capacity
The MoU also includes the setting up of other renewable energy source like solar, wind or hybrid
Source: Exchange filing
Stocks In Focus: Adani Group Stocks, JK Cement, Delhivery And More
Talking Point: Rahul Chadha's Top Investment Bets For FY24
BQ Edge: Moody's Analytics' Steve Cochrane On India Growth Story
Stocks At 52-Week High Intraday
European Markets Open Mixed
Axis Bank Shares Advance As Jefferies Maintains A 'Buy' On Integration With Citibank
Shares of Axis Bank Ltd. advanced in trade after Jefferies maintained a 'buy' with price target of Rs 1,150 apiece on the stock.
The brokerage sees a scope of rerating with a 16% CAGR growth over FY23-26 led by top-line and some cost synergies.
Jefferies On Axis Bank
Maintains a 'buy' with a price target of Rs 1,150 per share.
Integration with Citibank is moving well and the two entities are working on multiple areas of synergies.
Citibank’s India retail platform is progressing well with limited attrition among staff & customers.
Once integration costs are absorbed in FY24, it should be ROEs accretive, says the brokerage.
Bank improved lendable portion from stickier deposits which helped to grow loans with limited deposit growth.
As recoveries from the past non-performing loans moderate, credit costs will move towards normalised levels, says the brokerage.
Management is confident of sustain 18% ROE and does not plan for an immediate capital raise.
SME book has risks, but initiatives to derisk the book are encouraging, says the brokerage in its long term view.
Expects 19% CAGR over FY23-26 with a price target of Rs 1,290 apiece in an upside scenario and a 14% CAGR with a price target of Rs 760 apiece in a downside scenario.
Shares of Axis Bank Ltd. rose 1.57%, as of 1:47 p.m., to Rs 965.75 apiece in trade on Tuesday as compared to 0.18% declined in the NSE Nifty 50 Index.
The stock rose as much as 1.72% intraday. The relative strength index was at 73, implying that the stock maybe overbought.
Out pf the 50 analysts tracking the company, 47 maintain a 'buy' rating and three maintain a 'hold' on the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 14% over the next 12 months.
Source: Bloomberg, Exchange filing
Nifty IT declines the most since April 13 After EPAM Systems Cut Revenue Guidance
EPAM Systems has reduced its Q2 revenue guidance by 5% to $1.16-1.17 billion.
The US-based IT firm has reduced its full-year guidance to $4.65 billion from $4.8 billion.
EPAM expects to return to historical growth rates in 2-4 quarters from now.
Sensex, Nifty Drifty Lower As Infosys, TCS Drag: Midday Market Update
Indian equity benchmarks drifted lower in trade after a volatile start through midday on Tuesday. While, I.T. and media sectors declined, only Auto Index rose after hitting a fresh record high. While Infosys Ltd. and TCS Ltd. were dragging the index, Axis Bank Ltd., and Kotak Mahindra Bank Ltd. led.
Asian markets rose on Tuesday as gains by Hong Kong developers helped overcome a pause in global stocks’ rally. The Aussie gained as much as 0.9%, while the policy-sensitive three-year government note yield was up 11 basis points as the Reserve Bank of Australia hiked its benchmark rate by 25 basis points to 4.1%.
Asia stock benchmark climbed as the Hang Seng Index advanced as much as 1.4%, supported by a rally in the shares of real estate developers on speculation of new support measures for the sector.
Contracts for U.S. benchmarks were steady after tech shares led the S&P 500 down Monday, with Apple Inc. wiping out gains of as much as 2% as investors parsed the potential of a new mixed-reality headset.
As of 12:11 p.m., the S&P BSE Sensex Index was down 211 points or 0.34% at 62,576.43 while the NSE Nifty 50 Index was 497 points or 0.26% lower at 18,544.75.
Infosys Ltd., TCS Ltd., ICICI Bank Ltd., HCL Technologies Ltd., and Tech Mahindra Ltd. were negatively adding to the change in the Nifty 50 Index.
Whereas, Axis Bank Ltd., Kotak Mahindra Bank Ltd., Maruti Suzuki Ltd., Bajaj Finance Ltd., and UltraTech Cement Ltd. were positively contributing to the change.
The broader markets were mixed; the S&P BSE MidCap Index was down 0.20%, whereas S&P BSE SmallCap Index was higher by 0.07%.
Eleven out of the 19 sectors compiled by BSE declined, while eight sectors advanced.
The market breadth was skewed in the favour of the buyers. About 1,722 stocks rose 1,659 declined, and 126 remained unchanged on the BSE.
Thermax Shares Fall Over 3% After Arbitral Tribunal Approves Rs 250 Crore Of Claims Against Firm
Shares of Thermax declined the most in over two weeks after an arbitration panel ruled against the turbine and boiler maker in a matter related to breakdown of two gas turbo generators at one of its customers.
The award would have an estimated financial impact of about Rs 250 crore, it said in an exchange filing. The arbitrator directed the company to repair and reinstate both the generators at the customer’s plant under the defect
liability clause and also allowed claim on additional expenditure on power, along with interest companies.
“The company has been advised that the order is not based on proper appreciation of facts and is in the process of challenging the award before the appropriate appellate authority,” Thermax said in the exchange filing.
Shares of Thermax Ltd. rose 1.86% to Rs 3,268.2 apiece, as of 09:56 a.m., in trade on Monday compared to 0.23% decline in the benchmark, NSE Nifty 50 Index.
The stock fell as much as 3.52% intraday, the most in over two weeks since May 16, 2023. Total traded volume stood at 3.2 times its 30-day average. The relative strength index was at 52.
Out of the 25 analysts tracking the company, 11 maintain a 'buy' rating, eight recommend a 'hold' and six suggest to 'sell' the stock, as per the Bloomberg data.
The average calculated from the 12-month price target given by analysts implies a potential downside of 3.7%.
Source: Bloomberg, Exchange filing
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TCS Launches Data Exchange And Marketplace Platform Dexam On Google Cloud
Dexam is a software-as-a-service product that enables data exchange across enterprises and ecosystems.
Source: Exchange filing
NTPC To Commercialize 10 MW Capacity At Gandhar Solar PV Project
The PSU will start the operations for the second part of the 20 MW project from midnight on Wednesday.
Source: Exchange filing
Man InfraConstruction Announces Luxury Residential Project In Ghatkopar, Mumbai
The project has an estimated revenue potential of Rs 1,200 crore and it is expected to be completed in four years.
Source: Exchange filing
Nifty Bank Futures And Options Expiry Revised To Fridays
All monthly, weekly Nifty Bank contracts to expire on Fridays, instead of Thursdays.
The revision to come into effect from July 7.
The first Friday contract expiry will be on July 14.
Source: NSE circular
L&T's Construction Arm Wins Significant Category Order Worth Rs 1,000 To Rs 2,500 Crore
The EPC contract entails construction of the tallest building in India with a height of 300.5 meters.
It also includes a commercial building construction of 5.1 million square feet.
Source: Exchange filing
JK Cement Shares Gain The Most In Nine Weeks On Toshali Cements Acquisition Update
Shares of JK Cement Ltd. gained the most in over nine weeks after the company decided to acquire Odisha based Toshali Cements Ltd.
It has agreed to sign and execute a share purchase agreement to buy a 100% stake in Toshali Cements for Rs 157 crore in cash. The acquisition will help the company expand its footprint into the Eastern Region.
Toshali Cements has two manufacturing units, including one integrated unit with clinker capacity located in Ampavalli and a grinding unit in Choudwar, Cuttack.
Shares of JK Cement Ltd. rose 1.86% to Rs 3,268.2 apiece, as of 09:56 a.m., in trade on Monday compared to 0.04% decline in the benchmark, NSE Nifty 50 Index.
The stock fell as much as 3.60% intraday, the most in over nine weeks since March 29, 2023. Total traded volume stood at 15.6 times its 30-day average. The relative strength index was at 73.5, implying that the stock maybe overbought.
Out of the 28 analysts tracking the company, 15 maintain a 'buy' rating, seven recommend a 'hold' and six suggest to 'sell' the stock, as per the Bloomberg data.
The average calculated from the 12-month price target given by analysts implies a potential downside of 1.4%.
Source: Bloomberg, Exchange filing
Also Read: IKIO Lighting IPO: All You Need To Know
Nifty Auto Index Hits A Fresh Record
Broader Markets Open Higher
The broader markets opened higher; the S&P BSE MidCap Index was up 0.10%, whereas S&P BSE SmallCap Index was higher by 0.30%.
Sixteen out of the 20 sectors compiled by BSE advanced, except S&P BSE Healthcare, S&P BSE Telecommunication, S&P BSE Information Technology and S&P BSE Teck.
The market breadth was skewed in the favour of the buyers. About 1,785 stocks rose 909 declined, and 111 remained unchanged on the BSE.
Source: BSE
Most Adani Group Company Stocks Advance
All Adani Group company stocks advanced in trade except Adani Transmission Ltd.
Top Movers On The Nifty 50 Index
Infosys Ltd., ICICI Bank Ltd., TCS Ltd., HCL Technologies Ltd., and Tech Mahindra Ltd. were negatively adding to the change in the Nifty 50 Index.
Whereas, Kotak Mahindra Bank Ltd., Maruti Suzuki India Ltd., ITC Ltd., Adani Enterprises Ltd., and Reliance Industries Ltd. were positively contributing to the change.
Sensex, Nifty Decline At Open: Opening Bell
Indian equity benchmarks opened marginally lower on Tuesday after gaining for two straight session at close on Monday.
Asian markets were mixed in trade as Japanese stocks were marginally higher and market indices in Hong Kong and China advanced. Australian shares were under pressure.
The S&P 500 dropped to session lows on Monday, as Apple Inc. erased earlier gains in anticipation of a new mixed reality headset. Both tech and energy stocks pared earlier advances that had briefly pushed the S&P 500 20% above an October low, the marker of a bull market.
Energy stocks, including oil majors Chevron Corp. and Exxon Mobil Corp., pared gains owing to an oil supply cut from Saudi Arabia. Elsewhere, equities fell in Europe.
At pre-open, the S&P BSE Sensex Index was down 49 points or 0.08% at 62,738.35 while the NSE Nifty 50 Index was 7 points or 0.04% higher at 18,600.80.
Sensex, Nifty Mixed In Pre-Open Trade
At pre-open, the S&P BSE Sensex Index was down 49 points or 0.08% at 62,738.35 while the NSE Nifty 50 Index was 7 points or 0.04% higher at 18,600.80.
Source: Bloomberg
Yield On The 10-Year Bond Opens Flat
The yield on the 10-year bond opened flat at 6.98% on Tuesday.
Source: Bloomberg
Rupee Strengthened Against The U.S. Dollar
The local currency appreciated about 12 paise to open at 82.56 against the U.S dollar on Tuesday.
The local currency closed at 82.68 on Monday.
Source: Bloomberg
Trade Talk: All Eyes On Adani Stocks, JK Cements And More
Top Stocks That Should Be On Your Radar: Trade Setup
Bharti Airtel Converts FX Bonds To Equity Shares
Bharti Airtel allots 21 lakh equity worth $15.2 million or Rs 12,546 crore on the conversion of FX bonds.
Company has approved the allotment of 21.01 lakh shares on 1.50% convertible bonds, due 2025
The conversion price of the bonds is set at Rs 521 apiece, aggregating to $15.2 million
Source: Exchange filing
Indoco Remedies Buys 85% Stake In U.S.-Based FPP Holding For $4 million
Indoco Remedies has bought 85% stake in FPP Holding from Contract Pharmacal Corp
Florida Pharmaceutical Products is engaged in distribution and marketing of pharma products in USA
Source: Exchange filing
Global Cues
U.S. Dollar Index at 104
U.S. 10-year bond yield at 3.69%
Brent crude up 0.74% at $76.14 per barrel.
Nymex crude up 0.82% at $71.56 per barrel.
SGX Nifty down 0.12% at 18,703 as of 08:25 a.m.
Bitcoin up 0.11% at $25,670.42.
Pledge Share Details:
Jindal Steel & Power: Promoter Group Siddeshwari Tradex created a pledge of 1.5 lakh shares; Promoter Group Opelina Sustainable Services revoked a pledge of 15,000 shares; and Promoter Group OPJ Trading on June revoked a pledge of 10,000 shares on June 2.
Insider Trades
Mukand: Promoter Group Baroda Industries bought 50,000 shares between June 1 and June 2.
Som Distilleries & Breweries: Promoter Deepak Arora bought 10,000 shares on June 5.
Arman Financial Services: Promoter Himani A. Manakiwala sold 2,500 shares on June 2.
Edelweiss Financial Services: Promoter and Director Venkatchalam A. Ramaswamy bought 14.5 lakh shares on May 30.
Rajnish Wellness: Promoter Rajnish Kumar Singh bought 5.73 lakh shares between May 10 and June 2.
MTAR Technologies: Promoter Leelavathi Parvatha Reddy sold 3.47 lakh shares on June 1, and promoters P Kalpana Reddy and Mitta Madhavi sold 1 lakh shares each on June 1.
Meghmani Finechem: Promoter Rameshbhai Meghjibhai Patel bought 5,000 shares on June 5.
Trading Tweaks
Ex-Date Dividend: Nelco Ltd.
Offerings: IKIO Lighting IPO Day-1
IKIO Lighting: The company will launch its Rs 606.50 crore initial public offering on June 6, which will go on till June 8. It will raise Rs 350 crore from a fresh issue and make an offer for the sale of around 90 lakh shares. The company is aiming for a market of Rs 2,202.5 crore at the upper end of the price band of Rs 270–285 apiece.
Bulk Deals
Vijaya Diagnostic Centre: Fidelity Investment Trust Fidelity Series Emerging Markets F bought 11.82 lakh shares (1.15%) at Rs 383.63 apiece.
Cressanda Solutions: Parag Commosales sold 21.77 lakh shares (0.55%) at Rs 28.95 apiece and bought 3.8 lakh shares (0.09%) at Rs 29.32 apiece.
La Opala RG: Nippon India Mutual Fund bought 18.82 lakh shares (1.70%) at Rs 399.05 apiece. Malabar India Fund sold 18.85 lakh shares (1.70%) at Rs 399.05 apiece.
MTAR Technologies: Usha Reddy Chingarapalli sold 400,000 shares (1.30%) at Rs 1,880.01 per share, Anitha Reddy Dwaram sold 450,000 shares (1.46%) at Rs1,880.15 apiece, Kavitha Reddy Gangapatnam sold 270,000 shares (0.88%) at Rs 1,880 apiece. Plutus Wealth Management LLP bought 13.15 lakh shares (4.28%) at Rs 1,880.02 per share.
Praveg: Sunita Paras Patel sold 140,000 shares (0.67%) at Rs 489.32 apiece.
Stocks To Watch: Wipro, Coal India, JK Cement, Nelco, L&T Finance, IRCTC In Focus
Adani Group: The group made a prepayment of margin-linked share-backed financing totalling $2.15 billion. Promoters also prepaid the $700 million debt taken for the Ambuja Cement acquisition. The cash balance of the listed portfolio was up 41.5% YoY to $4.75 billion, or Rs 40,351 crore, in FY23.
Mahindra & Mahindra: Sunrise Initiatives sells its entire stake of 81.58% in Mahindra Marine to Ocean Blue Boating. Ocean Blue currently holds an 18.42% stake in Mahindra Marine.
SBI Cards and Payment Services: Board approves the raising of funds worth Rs. 3,000 crore through non-convertible debentures in one or more tranches on a private placement basis.
Bharti Airtel: A special committee of directors for fund raising approves the allotment of 21.01 lakh equity shares of face of Rs 5 each at a conversion price of Rs 521 to holders of foreign currency convertible bonds.
Allcargo Logistics: says Transindia Real Estate has agreed to further divest 10% stakes each in five subsidiaries of Allcargo and a 100% stake in Allcargo Multimodal to Blackstone.
NELCO: Company inks pact to acquire 9.09% stake in Piscis Networks with an initial investment of Rs 99.99 lakhs. It plans to increase its stake in the company to at least 30%.
Indian Energy Exchange: The company reported 8,251 MU overall volume in May, a gain of 8% year-on-year. The market clearing price declined 30% year-on-year to Rs 4.74 per unit. Power demand is expected to increase in the coming months, and supply side liquidity may improve due to enhanced coal supply, a reduction in e-auction coal prices, and declining imported coal and gas prices. This will lead to competitive prices and higher clearance for Discoms and Open Access consumers.
Veranda Learning Solutions: The company’s unit, Veranda RACE, partnered with Talent Academy & Publications to augment its reach in Kerala. Veranda RACE is also teaming up with placement-oriented company Phire, which offers expert training for recruitment in the private banking and BFSI sectors.
L&T Finance: The to meet on June 8 to consider the recommendation of the final dividend on the equity shares for fiscal 2022–2023.
Emami: The company bought back a total of 23.68 lakh equity shares on June 5.
Wipro: The company said its cloud-based dynamic digital signage solution, Wipro VisionEDGE, will power the television network Bowling Centre TV across the U.S., a new US based digital TV network to be distributed across 1,000 bowling centres in the US. Cisco is also a technology partner signed by BCTV.
Coal India: Government of India now owns 63.13% of the stake after the offer-for-sale.
JK Cement: The company agrees to sign and execute a share purchase agreement to buy a 100% stake in Toshali Cements for Rs 157 crore in cash. The acquisition will help the company expand its footprint into the Eastern Region.
CSB Bank: Mr. Satish Gundewar takes charge as chief financial officer of the company on June 5. He was the former CFO of DCB Bank.
Godrej Consumer Products: The company appointed Aasif Malbari as chief financial officer on Aug. 10. Malbari is currently the chief financial officer of Tata Passenger Electric Mobility and director of Tata Motors Passenger Vehicles. Godrej Consumer's current Chief Financial Officer, Sameer Shah, will move to a group role leading consumer investments.
AGMs
Ami Organics
Can Fin Homes
DCM Shriram
GE T&D India
India Grid Trust
Responsive Industries
Tata Consumer Products
Trident
SGX Nifty Signals Lower Open For Benchmarks
Asian markets were mixed in trade as Japanese stocks were marginally higher and market indices in Hong Kong and China advanced. Australian shares were under pressure.
The S&P 500 dropped to session lows on Monday, as Apple Inc. erased earlier gains in anticipation of a new mixed reality headset. Both tech and energy stocks pared earlier advances that had briefly pushed the S&P 500 20% above an October low, the marker of a bull market.
Energy stocks, including oil majors Chevron Corp. and Exxon Mobil Corp., pared gains owing to an oil supply cut from Saudi Arabia. Elsewhere, equities fell in Europe.
The yield on 10-year Treasury note in the U.S. was trading at 3.69%. Crude oil price was trading above the $76 mark, while Bitcoin declined below $26,000 level.
At 08:25 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India was down 0.12% at 18,703.
Domestic benchmarks snapped a three-week losing streak, with metals, auto, media, and PSU banking stocks leading the rally. The Indian rupee closed lower against the U.S. dollar.
Foreign investors remained net sellers for the third straight day and offloaded equities worth Rs 700.98 crore. On the other hand, domestic institutional investors were net buyers for the third straight day and bought stocks worth Rs 1,195.98 crore.
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