Sensex, Nifty Hold On To Weekly Gains Despite Three-Day Losing Streak
Catch all live updates on share prices, index moves, corporate announcements and more from the Sensex and Nifty, today.
KEY HIGHLIGHTS
10-Year Bond Yield Falls
Yield on the 10-year bond fell 7bps to 7.38% during the session. The 10-year bond yield closed at 7.42%.
The 10-year bond yield fell 10bps this week, snapping a three-week rising streak, in which the yield rose to three-day high of 7.62% on June 18.
Source: Bloomberg
Rupee Breaches 79 Levels Against U.S. Dollar
Indian currency depreciated 0.19% (15 paise) to a record low 79.12 against the U.S. dollar, during the session.
Rupee closed at 79.04, a fresh closing low. Rupee fell 0.89% this week (equivalent of 70 paise), the worst in 17 weeks.
The currency fell to a fresh low for four sessions in a row since Tuesday.
Source: Bloomberg
Closing Bell
India's stock benchmarks extended losing streak for the third day, but held on to gains for the second week in a row.
FMCG, Metal and Realty indices rose over 2% in the week while banking measures declined.
For the week though, the Sensex and Nifty rose in the first two sessions before logging losses in each of the next three.
On Friday, the Sensex fell over 100 points (0.21%) to 52,907.93. The Nifty 50 fell by similar magnitude to 15,752.05. Both the indices fell over 1.7% in intraday trade before trimming the losses. Today 38 of the Nifty 50 stocks rose, while 12 fell.
The broader indices outperformed their larger peers with MidCap index gaining 0.7% and SmallCap gauge rising 0.1%. Fourteen of the 19 sectoral indices compiled by BSE advanced with FMCG index gaining 2.5%. On the flipside, the Energy index lost 4% and Oil & Gas gauge shed over 3.2%.
Index Heavyweight Reliance Industries tumbled over 7.2%, the worst day in 20 months.
The market breadth is skewed in the favour of bulls. About 1,738 stocks rose, 1,546 fell and 227 remained unchanged.
Tata Motors’ Domestic Passenger Vehicle Sales Rise 87% In June
(YoY)
June 2021 : 24,110
June 2022 : 45,197
Rise : 87%
Source: Exchange Filing
Tech Glitch In HDFC Bank Led To Few Customers Receiving Money In Their Accounts
ITC Rises Most In Over Six Weeks To Three-Year High
India Is Close To Finalising Nationwide Battery-Swap Details, Reports Bloomberg
BLOOMBERG EXCLUSIVE
India plans to release final details of nationwide battery-swapping policy for electric two- and three-wheelers later this month.
Government intends to standardise size of batteries to make them compatible with all vehicles using swap stations.
Some battery pack developers and scooter makers have pushed back against standardization due to worries that interoperability will slow innovation.
Source: Person familiar with the matter, Document accessed by Bloomberg News
Automotive Axles Jumps Most In Four Weeks
Shares of Automotive Axles Ltd. rose nearly 10%, the most in four weeks. The rise comes after Ashok Leyland reported 6% MoM and 125% YoY growth in sales for the month of June.
Axle assemblies and auto parts maker Automotive Axles gets more than 60% of its sales from Ashok Leyland.
Trading volume is 2.5 times the 30-day average. Both the analysts tracking the company maintain 'buy'. The return potential of the stock is 25.7%.
Source: Bloomberg
Parag Milk Falls 12% To 52-Week Low
Shares of Mumbai-headquartered Parag Milk Foods fell nearly 12%, the most in at least a year, to a 52-week low. Trading volume is more than nine times the 30-day average. The fall comes after the company reported net loss for the quarter-ended March 2022, post market hours on Friday.
Q4FY2021-22 Results (Consolidated, YoY)
Net loss at Rs 602.39 crore Vs net profit of Rs 6.71 crore
Revenue at Rs 562.27 crore Vs Rs 434.35 crore
Ebitda loss at Rs 585.38 crore Vs Ebitda Rs 18.44 crore
Trading volume is more than nine times the 30-day average. Of the four analysts tracking the company, two maintain 'buy' and two suggest 'hold'.
Source: Exchange filing, Bloomberg
European Markets Decline
European markets decline after posting worst quarter since the quarter-ended March 2020. Euro zone June inflation reading and manufacturing PMIs from France, Germany, Italy and Spain are scheduled to be released today.
Source: Bloomberg
June GST Collection At Rs 1,44,616 Crore, Says FM Nirmala Sitharaman
June GST collection is 56% over same month last year.
Source: GST Day Event, Vigyan Bhawan
Engineers India Jumps Most In Over Two Weeks
Shares of state-run Engineers India, a firm offering design and engineering solutions to petroleum refineries, oil & gas processing, metallurgy and power industries, rose 2.81%, most in over two weeks.
The uptick comes after the company signed an agreement with CSIR-CSIO for joint commercialisation of Earthquake warning system.
Engineers India is engaged by CSIR-CSIO as technology commercialisation partner for a period five years starting from June 30, 2022.
The earthquake warning system is already in operation for Delhi Metro Rail Corporation since August 2015.
Trading volume is half the 30-day average. Of the 11 analysts tracking the company, 10 maintain 'buy' and one recommends 'sell'. The return potential of the stock is 45.2%.
Source: Exchange filing, Bloomberg
Maruti Suzuki Reports 5.76% YoY Rise In Sales In June
The country's largest carmaker, Maruti Suzuki India Ltd., reported a 5.76% rise in sales in June even as the chip shortage had a minor impact on its domestic sales.
The company sold 1,55,857 units in June 2022 compared with 1,47,368 units over the same period last year.
Sales Snapshot (YoY)
Exports rose 40% to 23,833 units.
Mini and compact vehicle segment sales rose 6.8% to 92,188 units.
Utility vehicle sales fell 33% to 18,860 units.
For more updates on Auto sales numbers, please follow our blog here.
ITC Inches Towards 52-Week High
Shares of ITC rose over 3.2% to Rs 282.3, like 5 paise away from 52-week high, in a weak market.
The stock is among the top gainers in Nifty FMCG index, which has risen 1.6% compared to 0.6% fall in the benchmark Nifty 50 index.
Trading volume is more than 2.5 times the 30-day average. Of the 36 analysts tracking the company, 33 maintain 'buy', three suggest 'hold'. The return potential of the stock is 9.9%.
Source: Bloomberg
Mid-Day Market Update: Sensex Loses 400 Points, Nifty Falls; Energy, Oil & Gas Tumble
India's stock benchmarks are off day's low, but are on course to extend losing streak to third session, dragged by energy, oil and gas stocks due to government's decision to raise taxes on export of gasoline, diesel, jet fuel.
The Sensex shed 0.65% to 52,672.59. The 30-stock gauge lost over 920 points to an intraday low of 52,094.25. The Nifty declined by similar magnitude to 15,672.
The broader indices underperformed their larger peers with MidCap index little changed and SmallCap index losing 0.3%. Thirteen of the 19 sectoral indices compiled by BSE Ltd. declined, with Energy and Oil and Gas indices falling over 3%.
The market breadth is skewed in the favour of bears. About 1,410 stocks rose, 1,719 fell and 233 remained unchanged.
SBI Has Crossed Rs 1 Lakh Crore In Gold Loans, Says Chairman Dinesh Khara
Seeing good traction in the gold loan business, expect to grow faster in FY23
Will be starting wealth advisory and management services for premium customers.
Have been happy with Whatsapp banking service we are providing to CUG customers currently, will be launching it for broader customers soon.
Source: SBI Press Briefing
Escorts Kubota Agri Machinery Tractor Sales Down 19.8% YoY In June
Escorts Kubota agri-machinery segment sold 10,051 tracctors in June, down 19.8% YoY compared to 12,533 tractors a year ago.
Domestic tractor sales fell 22.5% YoY in June at 9,265 units.
Exports rose 36.2% YoY at 786 units.
The company expects demand to improve with the onset of monsoon and likely record kharif crop production, rural liquidity and improvement in farmer sentiments.
Source: Exchange Filing
Eicher Motors Reports 161% YoY Sales Growth In June
Total Eicher trucks and buses sales at 6,185 units Vs 2,370 units in June 2021, up 161%
Total domestic sales at 5,584 units Vs 1,760 units in June 2021, up 217.3%
Total Exports at 601 units Vs 610 units in June 2021, down 1.5%
Source: Exchange filing
Ashok Leyland Reports 125% YoY Sales Growth In June
Auto sales update
Total vehicle sales in June at 14,531 units Vs 6,448 units in June 2021, up 125% YoY
Domestic sales at 13,469 units vs 5,841 units YoY
Source: Exchange filing
Virtual Digital Assets: CBDT Notifies Exclusions
Gift card/vouchers used to obtain goods or services or a discount on goods or services.
Mileage/reward points/loyalty card given without direct monetary consideration and used/redeemed only to obtain goods/services or a discount on goods/services.
Subscription to websites or platforms or application.
India Manufacturing PMI Drops In June
India Manufacturing PMI at 53.9 in June compared to 54.6 in May.
Manufacturing PMI signals twelfth consecutive monthly expansion.
Still, latest reading shows weakest pace of growth since September.
Rate of purchase price and output charge inflation retreated to three-month lows, but remained above long-run averages.
Source: IHS Markit
RIL Tumbles As Government Raises Taxes On Export Of Gasoline, Diesel, Jet Fuel
Jewelry Stocks Fall As Government Hikes Basic Import Tax On Gold
India Raises Taxes On Export Of Gasoline, Diesel, Jet Fuel
Government imposes special additional excise duty of Rs 23250/ tonne on Petroleum Crude
Government imposes special additional excise duty on ATF at Rs 6/ litre
Exempts special additional excise duty for any entity producing less than 2-million barrel in FY22
Exempts special additional excise duty for quantity produced over and above FY22 production of crude petroleum oil
India Raises Basic Import Tax On Gold To 12.5%.
India has raised the basic import tax on gold to 12.5% from the existing 7.5%.
Source: Gazette notification
Opening Bell: Sensex, Nifty Decline; Titan Loses 4%
India's stock benchmarks fell, dragged by auto, banking, consumer durables and metal stocks, amid decline in global equities.
The S&P BSE Sensex fell over 0.5% to 52,739.19. The NSE Nifty 50 also declined by similar magnitude to 15,690.85. Today 14 of the Nify 50 stocks rose, 36 fell.
The S&P BSE MidCap almost mirrored its larger peers, while S&P BSE SmallCap outperformed, falling 0.25%. Fourteen of the 19 sectoral indices compiled by BSE Ltd. declined with Consumer Durables index losing over 1%.
The market breadth is skewed in the favour of bulls. About 1,221 stocks rose, 998 fell and 174 remained unchanged.
Packaging Firms In Focus As Ban On Single-Use Plastic Comes Into Effect
In Focus: TCPL Packaging, Time Technoplast, Cosmo Films, Uflex, Polyplex, HUL, Godrej Consumer, Marico, Nestle India, Dabur
Source: Bloomberg
Rupee Falls Below 79 To Record Low
Rupee breaches 79 levels against the U.S. dollar for the first time, to a fresh record low.
Source: Bloomberg
Rupee At Record Low
IRB Infra Gets Completion Certificate From NHAI For U.P. Six-Lane Highway Project
IRB Infrastructure's SPV - IRB Hapur Moradabad Tollway has received completion certificate from NHAI for its six lane highway project (Hapur-Moradabad) in Uttar Pradesh.
With this, the company can collect toll at higher tariffs, up 65% over existing toll tariffs.
The project concession period is 22 years.
Source: Exchange filing
Wipro To Buy 1.42% Of Harte Hanks Common Stock
Wipro LLC, a wholly owned subsidiary of Wipro, signed a definitive agreement to sell its Series A Convertible Preferred Shares to marketing services firm Harte Hanks Inc by way of repurchase of shares for $9.926 million in cash and 1,00,000 shares of Harte Hanks (nearly 1.42% stake).
The transaction is expected to close within 90 days from the date of signing the agreement.
In January 2018, Wipro and Harte Hanks signed long-term partnership of offer end-to-end marketing technology services. Wipro LLC had then made a strategic investment of $9.926 million towards 9,926 convertible preferred stocks of Harte Hanks.
Source: Exchange filing
Trade Setup For Friday
Net Institutional Flows Turn Positive After Four Sessions On Thursday
Analyst Actions
Jefferies on Cement Sector
All-India average price slipped 1-2% month-on-month in June 2022.
Dealers indicated improved demand, but an increase in supply is weighing on prices.
Cement stocks in India have seen a modest bounce recently, probably reflecting positive demand sentiment in June and broader recovery.
Earnings estimates, however, continue to be at risk, given the elevated costs and weak exit prices.
Expect stocks to remain soft during monsoon.
Nomura on Maruti Suzuki
Neutral, Target Price Rs 8,627; Launches 2022 Brezza.
Received more than 45,000 bookings within first eight days.
Factor in 25%/9% volume growth in FY23/24F on new models.
Market share to improve to 45% in FY23F from 43.5% in FY22.
Stocks To Watch
Bharti Airtel: The company has opted for deferment of payment of adjusted gross revenue dues up to FY19 for four years. Separately, the Competition Commission of India has approved investment of Rs 5,224.38 crore ($700 million) by Google International.
Jubilant Pharmova: A wholly owned subsidiary in Canada announced that Government of Quebec has granted a loan of CAD 25 million (Rs 153.48 crore), including a forgivable portion of CAD 6.3 million, to fund capacity expansion at the Montreal facility.
Lupin: The company has received the U.S. FDA approval for Paliperidone Extended-Release Tablets, to market a generic equivalent of Invega Extended-Release Tablet. The product will be manufactured in Goa and has an estimated annual sales of $152 million in the US.
Hero MotoCorp: An arbitration tribunal has allowed India's largest two-wheeler maker to use the 'Hero' trademark for selling its electric vehicles. Hero Electric had sought an injunction against the company in the matter.
UPL: The company has acquired Nature Bliss Agro for Rs 1 lakh. The company, which has yet to commence operations, will be involved in the manufacture and sale of crop protection and allied products.
Hindustan Unilever: India's largest consumer goods maker has approved the appointment of CEO Sanjiv Mehta on the board of PT Unilever Indonesia TBK as president commissioner.
Hindustan Copper: The company has approved raising Rs 34.83 crore via a qualified institutional placement and Rs 500 crore through non-convertible debentures.
Phoenix Mills: Reco Zinnia has competed the second tranche of its investment of Rs 400 crore in the company and its subsidiaries.
Punjab National Bank: The state-run lender has raised its marginal cost of funds-based lending rate by 15 basis points across tenors.
Greenlam Industries: The firm has agreed to merge HG Industries with itself in a share swap ratio of 1:2. Shareholders will get one Greenlam share of face value Rs 1 for every two they hold in HG Industries.
Indian Bank: The bank has raised MCLR by 15 basis points across tenors. The base rate was revised to 8.7% from 8.3% and the repo-linked lending rate was raised to 4.9% from 4.3%.
CSB Bank: The lender has raised MCLR by 10-15 basis points across tenors. The base rate was revised to 9.9% from 9.35% and benchmark prime lending rate to 12.95% from 12.55%.
Union Bank: The lender has approved raising of Rs 8,100 crore and declared dividend of Rs 1.9 per share.
Federal Bank: Approved fundraising of Rs 4,000 crore.
Indus Towers: Bharti Airtel has acquired an additional 2.06% stake in India's largest telecom towers operator.
Lodha, Oberoi, Godrej Properties: The real estate stocks are in focus amid a buoyant Mumbai market. The number of units registered and stamp duty collected was the highest ever for the month of June
Sensex, Nifty Set For Muted Start; Bharti Airtel, Lupin, Hero MotoCorp, UPL, HUL In Focus
Stocks fell and U.S. treasuries held gains on Friday amid worries about a global economic slowdown.
Shares declined in Japan but rose in Australia and South Korea. Hong Kong’s markets are closed for a holiday to mark the 25th anniversary of Chinese rule. The S&P 500 and Nasdaq 100 futures were volatile.
At 6:45 a.m., the Singapore-traded SGX Nifty—an early barometer of India's benchmark Nifty 50—rose 0.10% to 15,739.
The dollar inched higher. Crude trimmed losses. Bitcoin rose to reclaim the $20,000 level.