Sensex, Nifty Fall For Fourth Day Dragged By RIL, I.T. Stocks
India's stock benchmarks declined for fourth day, dragged by losses in energy, oil & gas, I.T., metal, fmcg and power stocks
10-Year Bond Closes Little Changed
Yield on the 10-year bond rose 3bps to 7.61%, just 1bps off three-year high of 7.61%.
The 10-year bond yield eased off day's high to close at 7.59%, up 1bps for the session.
Source: Bloomberg
Rupee Closes At Fresh Low
Indian currency fell 10bps to 78.10 against the dollar, during the session.
Rupee trimmed some of the losses to close at 78.07, a fresh closing low. The previous closing low was 78.04 on Monday when the currency breached 78 level for the first time to a record intraday low of 78.28/
Source: Bloomberg
Closing Bell
India's stock benchmarks declined for fourth day, dragged by losses in energy, oil & gas, information technology, metal, fmcg and power stocks, in yet another volatile session. Focus now shifts to FOMC decision due later today.
The Sensex fell 0.29% to 52,541.39. The 30-stock gauge rose to an intraday high of 52,867.73 before reversing gains. The Nifty also declined by similar magnitude to 15,692.15. Today, 25 of Nifty 50 stocks rose, while 25 fell.
The broader indices outperformed their larger peers with both MidCap and SmallCap gauges gaining 0.5%. Ten of the 19 sectoral indices compiled by BSE declined, with Energy, I.T., Metal, Power, Utilities indices losing the most. On the flipside, Auto index advanced.
The market breadth was skewed in the favour of bulls. About 1,763 stocks rose, 1,530 fell and 149 remained unchanged.
Grasim Rises Most In Two Weeks After Jefferies Reiterates 'Buy'
Shares of Grasim Industries rose over 2.4%, the most in over two weeks after Jefferies reiterated 'buy' after interacting with the company's management at Jeferries India forum.
Jefferies sees good growth prospects for the company from VSF segment and believes that focus on core business bodes weel, due to high RoCE.
The brokerage also says that the company's foray into paints industry could well lead to the company becoming a credible second option to Asian Paints.
Jefferies also insists that the valuations of the company are 'reasonable' and cut target to Rs 1,730 from Rs 1,845.12.
Of the 10 analysts tracking the company, nine maintain 'buy' and one suggests 'hold'. The return potential of the stock is 26.4%.
Source: Jefferies note, Bloomberg
Bajaj Finance Overtakes ITC In Market Capitalisation After Two Days
Rupee Slips To Near-Record Low
Indian currency fell 0.13% (10 paise) to 78.10 against the dollar, during the session.
Rupee eased off day's low to 78.06, as of 2:15 p.m.
Rupee fell to a record low 78.28 in intraday trade on Monday.
Source: Bloomberg
10-Year Yield Hovers Around Three-Year High
Yield on the 10-year bond rose 3bps to 7.61% during the session, just 1bp away from three-year high of 7.62%.
Source: Bloomberg
European Markets Advance
European markets gain ahead of FOMC decision. The European Central Bank has announced an unscheduled monetary policy meeting on Wednesday amid surge in bond yields across countries in the Euro Zone.
Source: Bloomberg
Delta Corp Falls As Rakesh Jhunjhunwala Trims Stake
Shares of Delta Corp reversed 2% gains and fell over 3.25%.
The decline comes after billionaire investor Rakesh Jhunjhunwala informed exchanges on Tuesday that he reduced his holding of 1,65,00,000 shares by 60,00,000 shares in Delta Crop, between June 1 and June 10.
The reduction amounts to 2.2435% of total issued and paid-up capital of the company.
Rakesh Jhunjhunwala also sold a further 15,00,000 shares on June 13 and June 14.
After the sale, Rakesh Jhunjhunwala holds 90,00,000 shares of the company (3.3652%) share capital.
Trading volume is of the same magnitude as the 30-day average. The relative strength index of the stock is at 24, suggesting the stock may be oversold.
Delta Corp's stock has fallen over 30% in 2022 so far compared to more than 9% loss for Nifty 50 index.
Source: BSE, Bloomberg
UAE Imposes Moratorium On Export Of Wheat Originating From India For Four Months
UAE Imposes Moratorium On Export Of Wheat Originating From India For Four Months
UAE imposes moratorium on export and re-export of wheat and wheat flour originating from India for fourth months starting from May 13, 2022. The resolution applies to all wheat varieties.
The decision is due to 'international developments which have affected trade flows'.
Source: UAE Government
Paytm Gains On Strong Business Update
Shares of One 97 Communications (Paytm) rose nearly 3%. The stock has gained over 6% over the last two days.
In a business update, the company said that its lending business rose in the two-months ending May with lending business seeing 471% YoY growth. Loan disbursement during the two months ending May came in at 5.5 million and the loan value is Rs 3,576 crore.
The company also continued it leadership in offline payments, with 3.4 million devices deployed for the purpose. User engagement on Paytm Super App is at 74.3 million monthly transacting users, up 48% YoY.
Merchant payment volumes for the two months ending May also rose 105% YoY to Rs 1.96 lakh crore.
Of the 10 analysts tracking the company, five suggest 'buy', two recommend 'hold' and three maintain 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 38.9%.
Source: Exchange filing, Bloomberg
IIFL Wealth Management Gains Most In Over Two Weeks
Shares of IIFL Wealth Management gained over 3.5%, the most in over two weeks.
The rise comes after Competition Commission of India approved purchase of 24.98% stake of the company by Bain Capital.
Trading volume is of the same magnitude as the 30-day average.
All four analysts tracking the company maintain 'buy'. The return potential of the stock is at 46.3%.
Source: Exchange filing, Bloomberg
India Trade Deficit Rises Above Estimate In May
India May Trade Deficit At $24.3 Billion (Estimate: -$23.10 Billion)
Exports rose 20.55% YoY to $38.94 billion
Imports rose 62.8% YoY to $63.2 billion
Oil imports at $19.2 billion
Non-oil imports at $44.03 billion
Gold imports at $6.03 billion
Vegetable oil imports at $1.7 billion
Services exports at $23.28 billion
Services imports at $14.43 billion
Source: Directorate General of Commercial Intelligence & Statistics
Mid-Day Market Update: Sensex, Nifty Swing To Gains; Bajaj Twins, Auto Stocks Advance
India's stock benchmarks reverses early losses and swung to gains in a volatile session so far. Rise in auto, capital goods and consumer discretionary stocks offset the fall in energy, metals and fmcg stocks. Focus will shift to the U.S. Federal Reserve's rate decision due later today.
The Sensex rose over 0.2% to near-day's high 52,815.33. The 30-stock gauge shed over 150 points to an intraday low of 52,538.51, before recovering nearly 300 points from day's low. The Nifty also advanced by similar magnitude to 15,768.70. Today, 31 of the Nifty 50 stocks rose, one remained unchanged and 18 stocks fell.
The broader indices outperformed their larger peers, with both the SmallCap and MidCap gauges rising 0.75%. Fourteen of the 19 sectoral indices compiled by BSE Ltd. rose which Auto and Consumer Discretionary measures rising 1%.
The market breadth is skewed in the favour of bulls. About 1,980 stocks rose, 1,168 fell and 144 remained unchanged.
LIC Shares Extend Gains For Second Day After 10-Day Losing Run That Wiped 20%
Shares of Life Insurance Corporation rose over 5.2%, the biggest intraday gain since debut.
The stock is on course to extend gains for the second day after it snapped a ten-day losing streak on Tuesday.
The stock is 27% lower than the issue price of Rs 949, as of today.
The relative strength index on the stock is 23, suggesting it may be oversold. Trading volume is more than 1.5 times the 30-day average.
Both the analysts tracking the stock maintain 'hold'.
The return potential of the stock is 34.4%
Source: Bloomberg
3D Mapping Firm Genesys Surges After Receiving Rs 250 Crore Equity Commitment
Shares of Mumbai-headquartered 3D mapping firm Genesys International surged 5% after the company received investment of Rs 250 crore equity.
Malabar India Fund and marquee investors, including Sundar Iyer, Mathew Cyriac, Inder Soni, Vijay Karnani, participated in the investment round, the company said in an exchange filing.
Genesys was the first firm to launch street imagery immersive content for all major Indian cities. Its constellation is the largest sensor constellation to acquire terrestrial, oblique and aerial imagery.
The stock is on a seven-day winning streak in which it has gained nearly 28%.
Source: Exchange filing, Bloomberg
Government Sets Pricing For 5G Spectrum Bands
Delhi 600MHz spectrum reserve price at Rs 2,545 crore per block.
Mumbai 600MHz spectrum reserve price at Rs 2,350 crore per block.
Delhi 3300MHz spectrum reserve price at Rs 400 crore per block.
Mumbai 3300MHz spectrum reserve price at Rs 350 crore per block.
Source: Department of Telecommunications
(Note: Delhi and Mumbai 3,300 MHz spectrum reserve price have been corrected)
Canara Bank Loses 10% In This Week So Far
Shares of Canara Bank fell over 3.5%, on course to extend losses for third day. The stock has lost nearly 10% this week so far.
In an exchange filing on Wednesday, Canara Bank said that it will consider and approve the capital raising plan for the financial year FY2022-23 on June 24.
Of the 14 analysts tracking the company, 13 maintain 'buy' and one suggests 'sell'. The return potential of the stock is 42.5%.
Source: Exchange filing, Bloomberg
GAIL India Gains Most In Week As Morgan Stanley Expects Shares To Rise Within 60 Days
Shares of GAIL India gained over 3.3%, the most in a week, Morgan Stanley reiterated 'Overweight/In-line' on the stock. The target price is set at Rs 209, an implied upside of 41%.
Morgan Stanley believes that the share price of GAIL will rise in the next 60 days, due to decline in Henry hub gas prices. Uptick in domestic demand, higher LPG prices should aid earnings, according to the brokerage.
Henry Hub is a natural gas pipeline in Louisiana that serves as a official delivery location and pricing point for natural gas futures on New York Mercantile Exchange.
Morgan Stanley says that GAIL's valuation is 'not only attrractive, but also has a tailwind of earnings upgrade cycle'.
Of the 33 analysts tracking the company, 30 maintain 'buy' and three suggest 'hold'.
The overall consensus price of analysts tracked by Bloomberg implies an upside of 27.7%.
Source: Morgan Stanley note, Bloomberg
Is Kotak Mahindra Bank The Best Lender In Terms Of Liabilities?
Coinbase Fires 8% Of India staff, warns of “potential recession.”
Coinbase has laid off 18% of its global workforce, which includes 8% of its India staff.
CEO Brian Armstrong said managing costs “is critical in down markets” and that “a broader market downturn means that we need to be more mindful of costs as we head into a potential recession.”
Coinbase said India remains one of top market priorities and it will continue building its tech hub in Bengaluru.
Source: Brian Armstrong’s Twitter
Cabinet Approves 5G Spectrum Auction
Over 72 GHz of spectrum to be auctioned by the end of July, 2022 for a period of 20 years.
Cabinet also decided to enable the development and setting up of private captive networks.
The requirement of submitting a financial bank guarantee equivalent to one annual instalment has been done away with.
In a first, there is also no mandatory requirement to make upfront payment by the successful bidders. Payments can be made in 20 equal annual instalments to be paid in advance at the beginning of each year.
This is expected to significantly ease cash flow requirements, the government said.
Bidders would also be given an option to surrender the spectrum after 10 years with no future liabilities with respect to balance instalments.
Source: PIB
Sugar Stocks Gain Ahead Of Government's Meet To Discuss Exports
Shares of sugar mills like Balrampur Chini, Bajaj Hindusthan, Shree Renuka, Dhampur sugar rose after the government announced a meeting with mills and exporters on Wednesday.
The meeting, which will take place at noon will discuss the export of sugar.
Source: Bloomberg, Food Department
G R Infrastructure Tumbles 19% In Three Days As CBI Files FIR Against Firm Under Prevention Of Corruption Act
Shares of GR Infrastructure fell over 3.5% as they extended losing streak for the fifth day. The stock has shed 19% over last three weeks.
The decline comes after CBI conducted raids at the residence of chairman Vinod Kumar Agarwal and the corporate office in Gurugram.
The company informed in an exchange filing post market hours on Tuesday that CBI filed FIR under Prevention of Corruption Action Against G R Infraprojects and three of the company's officials.
FIR has been registered against the company, Executive Director Sunil Agarwal, Assistant General Manager Dilip Rajput, Deputy Manager Pankaj Singh
FIR filed under sections 7, 8, 9, 10 and 12 of the Prevention of Corruption Act, 1988 and section 120B of the Indian Penal Code.
Sunil Agarwal, Dilip Rajput and Pankaj Singh are under arrest.
Searches conducted at the residence of the chairman Vinod Kumar Agarwal and corporate office at Gurugram have concluded
G R Infra says that all operations are functioning without any impediment as of now, but it is difficult to asset the impact of the development at present.
Of the 16 analysts tracking the company, 12 maintain 'buy', three suggest 'hold' and one recommends 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 54%. Trading volume on the stock is more than 11 times the 30-day average. The relative strength index is at 17, suggesting it may be oversold.
Source: Exchange filing, Bloomberg
Bajaj Auto Is The Lone Loser In Nifty Auto Index
Shares of Bajaj Auto extended losses for the second day in a row after the company's board decided that further deliberations are required in order to take a decision on the proposal of buyback and deferred the matter. On June 9, Bajaj Auto had said it would consider a buyback proposal.
Trading volume is 1.5 times the 30-day average. The company has a dividend of Rs 140, payable on July 30, 2022. The stock will trade ex-dividend on June 30, 2022. Of the 53 analysts tracking the company, 39 maintain 'buy', 10 suggest 'hold' and four recommend 'sell'. The return potential of the stock is 14.8%. The stock is the only loser in the 15-stock Nifty Auto index, which gained over 1.25% on Wednesday.
Source: UBS note, Exchange filing, Bloomberg
Network18 Gains After Bagging Digital Media Rights For IPL; Franchise Owner Sun TV Rises
Tata Communications Slips To 52-Week Low As Brokerages Slash Target
Shares of Tata Communications fell over 7%, the most in over six weeks to 52-week low of Rs 856.25.
The fall comes after Motilal Oswal retained 'neutral' and cut target while Emkay Global also reiterated 'buy', but slashed target from Rs 1,650 to Rs 1,155.
The reduction in target price comes after the company hosted an analysts meet to high its new age capabilities and growth opportunities.
Motilal Oswal says that growth in digital platforms 'has to accelerate' to achieve the double digit growth guidance. The brokerage expects growth to moderate over FY22-24E.
Trading volume is more than eight times the 30-day average. Of the nine analysts tracking the company, seven maintain 'buy', one suggests 'hold' and one recommends 'sell'. The return potential of the stock is 45.4%.
Source: Motilal Oswal note, Bloomberg
Opening Bell: Sensex, Nifty Decline; Energy, Telecom Stocks Fall
India's stock benchmarks opened lower dragged by losses in energy, telecom, metal and fmcg stocks. Focus shifts to Federal Reserve meeting where a 75bps rate hike is expected, later today.
The S&P BSE Sensex fell 0.17% to 52,602.16. The NSE Nifty 50 declined by similar magnitude to 15,707.10. Today 28 stocks rose, 22 fell. Reliance Industries is the top loser on the Nifty 50 index, falling 1.5%.
The broader indices outperformed their larger peers, with S&P BSE MidCap and SmallCap gaining 0.5%. Eleven of the 19 sectoral indices compiled by BSE Ltd. advanced, with with Auto and Utilities indices gaining 0.75%. On the flip side, S&P BSE Metal lost 1%.
The market breadth is skewed in the favour of bulls. About 1,699 stocks advanced, 705 fell and 93 remained unchanged.
Rupee Opens Little Changed
Indian currency opened at 78 against dollar, before falling 2 paise to 78.02.
Rupee fell to record low of 78.28 on Monday.
Source: Bloomberg
IPL-Linked Stocks In Focus
Shares of firms that own franchises in IPL such as Reliance Industries, Sun TV, United Spirits will be in focus after the sale of the media rights.
In Focus: Reliance Industries, Sun TV, United Spirits
Also In Focus: Zee Entertainment, which failed to win broadcasting rights.
Source: Bloomberg
Paytm Lending Business Gains In Two-Months Ending May
Paytm lending business rose in the two-months ending May with lending business seeing 471% YoY growth.
Loan disbursement during the two months ending May came in at 5.5 million and the loan value is Rs 3,576 crore.
The company also continued it leadership in offline payments, with 3.4 million devices deployed for the purpose.
User engagement on Paytm Super App is at 74.3 million monthly transacting users, up 48% YoY.
Merchant payment volumes for the two months ending May also rose 105% YoY to Rs 1.96 lakh crore.
Source: Exchange filing
Motilal Oswal Retains 'Buy' On Maruti Suzuki
Motilal Oswal
Reiterates 'buy' with target price unchanged at Rs 10,000, an implied return of 28%.
New launches, return of product lifecycle, rising demand, easing of supply concerns and stable commodity costs are likely to propel market share recovery as well as margin expansion.
Recent decline in commodity prices and favourable Yen-Rupee movement can add to margin expansion.
Believes that Maruti Suzuki is planning to replicate product laddering strategy in the SUV segment with the launch of four new brands over the next two years.
Analysis shows that market shares in the PV segment are very highly correlated with the product lifecycles.
Believes that the company's three-pronged approach to expand product portfolio, network and add new markets aided exports.
Expects strong demand, improving chip supplies, moderation in commodity prices and favorable forex to aid the margin recovery of the company.
Source: Motilal Oswal note
Trade Setup For Tuesday
CBI Files FIR Under Prevention of Corruption Act Against G R Infraprojects, Three Company Officials
FIR has been registered against the company, Executive Director Sunil Agarwal, Assistant General Manager Dilip Rajput, Deputy Manager Pankaj Singh
FIR filed under sections 7, 8, 9, 10 and 12 of the Prevention of Corruption Act, 1988 and section 120B of the Indian Penal Code.
Sunil Agarwal, Dilip Rajput and Pankaj Singh are under arrest.
Searches conducted at the residence of the chairman Vinod Kumar Agarwal and corporate office at Gurugram have been concluded
G R Infra says that all operations are functioning without any impediment as of now, but it is difficult to asset the impact of the development at present.
Source: Exchange filing
Stocks To Watch
LIC: The company’s stake in Hero MotoCorp has increased from 9.163% to 11.256%. It has also increased its stake in Hindustan Unilever to 5.008%.
SBI: India's largest public sector lender has increased MCLR-based lending rates across tenors by 20 basis points.
NTPC: The company has started commercial operations for 15 MW out of 56 MW Kawas Solar PV Project at Kawas, Gujarat, taking its total operational capacity to 54,666.68 MW.
Wipro: The Bengaluru-based IT firm will increase its headcount in Norway to 350 to help clients capitalise on digital transformation.
Asian Paints: The company has acquired 51% stake in Weatherseal Fenestration for Rs 19 crore to make it a subsidiary.
Cipla: The drugmaker, along with Drugs for Neglected Diseases initiative, has launched an HIV drug for children in South Africa.
Bajaj Auto: Shekhar Bajaj has resigned as the non-executive director of the company due to health reasons.
Engineers India: The company was appointed as project management consultant by Nayveli Lignite Corp. for 1200 TPD lignite to methanol project. The project is expected to be commissioned in 2027.
Biocon: The Competition Commission of India has approved the sale of the global biosimilars portfolio of Viatris Inc. to the company.
IIFL Wealth: The Competition Commission of India has approved purchase of 24.98% stake of the company by Bain Capital.
GR Infraprojects: GR Bandikui Jaipur Expressway, a wholly owned subsidiary of the company, executed the concession agreement with the National Highways Authority of India.
Sensex, Nifty Set For Muted Open; LIC, Bajaj Auto, SBI, NTPC, Wipro, Cipla In Focus
Asian stocks struggled for direction on Wednesday after S&P 500 fell for a fifth straight trading session--the longest losing streak in five months.
U.S. treasury yields and the dollar rose ahead of an FOMC decision due tonight. Shares dipped in Japan, Australia and South Korea.
As of 6:45 am, the Singapore-traded SGX Nifty—an early barometer of India's benchmark Nifty 50—was 0.07% higher at 15,711.50 points.
Elsewhere, Bitcoin traded below $22,000. Oil held under $120 a barrel