Sensex, Nifty Rise For Second Day To Close At A Four-Week High

India's stock benchmarks advanced for the second day and closed near day's high, aided by gains in metal, consumer durables, realty, banking, information technology stocks.

The Sensex closed above 54,000 for the first time in nearly four weeks. The 30-stock gauge added over 425 points (0.80%) t 54,178.46.

The Nifty advanced by similar magnitude to 16,132.90. This is also the first time Nifty closed above 16,000 in four weeks since June 10.

The broader indices outperformed their larger peers with both SmallCap and MidCap measures gaining 1.2%. All 19 sectoral indices compiled by BSE rose, with Metal index surging 4.5%.

The market breadth is skewed in the favour of bulls. About 2,268 stocks rose, 1,020 fell and 150 remained unchanged.

• Yield on the 10-year bond rose 7bps to 7.36%, before closing at 7.35%. Today's rise is the most in over three weeks since June 13.

• Today's rise in 10-year bond yield follows 9bps decline on Wednesday, the steepest fall in over two weeks.

Source: Bloomberg

Indian currency rose 0.51% (40 paise) to 78.90 against the U.S. dollar after sliding to record low 79.37 in intraday trade on Wednesday.

• The Rupee closed at 79.18, up 13 paise from Wednesday's close of 79.30.

• The Rupee appreciation in today's session follows RBI's measures to boost foreign exchange inflows. The Rupee has closed above 79 levels in each of the last three sessions.

Source: Bloomberg

Power Grid approves investment proposal with an estimated cost of Rs 4,546.26 crore to expand transmission network in Gujarat. This is done to increase Available Transfer Capacity (ATC) from ISTS: Part B (Inter State Transmission Systems Project: Part B), scheduled to be commissioned by June 2023.

• The company also accorded investment approval, at an estimated cost of Rs 186.19 crore to expand transmission network in Gujarat to increase ATC from ISTS: Part C (to be commissioned by March 2025).

• Besides these, the company granted investment approval for West Region Expansion Scheme at an estimated cost of Rs 127.61 crore, expected to be commissioned by June 24.

• Power Grid gave its nod for the incorporation of JV with Nepal Electricity Authority to implement Indian Portion of New Butwal-Gorakhpur 400 kV Double Circuit cross border transmission line. The equity participation in the JV will be 50:50.

Source: Exchange filing

• British Pound rebounds after sliding to two-year low of 1.19 against the U.S. dollar on Wednesday.

Source: Bloomberg

Shares of FSN E-Commerce Ventures (or Nykaa), rose over 4.8%, the most in two weeks.

• The uptick comes after the company announced expansion into men's innerwear and athleisure category with its new brand, Gloot, post market hours on Wednesday.

• The underwear range starts from Rs 499 and athleisure from Rs 899.

• The company is trading nearly 29% higher than its IPO price of Rs 1,125 and 44% lower than the 52-week high of Rs 2,573.7(on November 26, 2021).

• Trading volume is 1.5 times the 30-day average. Of the 15 analysts tracking the company, 10 maintain 'buy', four suggest 'hold' and one recommends 'sell'. The return potential of the stock is 15.6%.

Source: Exchange filing, Bloomberg

• European markets open higher, aided by gains in technology stocks, amid fall in crude prices

• European Central Bank will publish the minutes of its latest monetary policy meeting today.

Source: Bloomberg

HDFC Bank, ICICI Bank and Axis Bank have been allowed to provide letter of credit and direct bank transfer business for overseas procurement by India’s defence ministry.

• These banks each may be allocated letter of credit business of Rs 2,000 crore on capital side and an equal amount on revenue side for one year on concurrent basis.

• Performance of these banks will be monitored regularly

• This is the first time private banks have been allowed to provide financial services for overseas procurement by India’s defence ministry.

Source: Press statement

Shares of Ruchi Soya fell 3%. The slump comes after PTI reported post market hours that government directed oil manufacturers to further cut the MRP of imported cooking oils by upto Rs 10 per litre with a week.

• Oil manufacturers have been asked to maintain uniform MRP of the same brand of oil across the country.

• PTI quoted Food Secretary Sudhanshu Pandey seeking reduction of MRP of edible oil as global prices fell 10% over the last week.

• Trading volume is similar to 30-day average.

Source: PTI, Bloomberg

Shares of Gurugram-headquartered auto parts and electronic control devices maker JTEKT India gained over 6%, most in nearly two weeks. The surge after the company approved a scheme to merge a subsidiary with itself.

• In an exchange filing post market hours on Wednesday, the company gave its nod for amalgamation of JTEKT Fuji Kiko Automotive with itself. The proposed appointed date of the scheme is April 1, 2022. The merger plan is subject to approval from NCLT and other applicable regulatory entities.

• JTEKT Fuji Kiko will issue and allot 98,00,014 shares to shareholders of JTEKT India, as per the following exchange ratio.

• For every 100 equity shares of JTEKT Fuji Kiko of face value of Rs 10, shareholders will get 200 equity shares of JTEKT India of face value of Re 1 each

• Trading volume is nearly twice the 30-day average.

Source: Exchange filing, Bloomberg

India's stock benchmarks are on course to rise for the second day in a row, aided by gains in consumer durables, metal, capital goods, auto, banking, realty and information technology stocks.

The S&P BSE Sensex rose 0.86% (461 points) to 54,211.84. The 30-stock gauge reclaimed 54,000 after nearly four weeks. The NSE Nifty 50 also advanced by similar magnitude to 16,120. Today 38 stocks rose while 12 fell.

The broader indices outperformed their larger peers, with both SmallCap and MidCap indices rising over 1%. All the 19 sectoral indices compiled by BSE advanced with Consumer Durables measure rising over 3% and Realty gauge jumping 2%.

The market breath is skewed in the favour of bulls. About 2,226 stocks rose, 945 fell and 157 remained unchanged.

Shares of Star Health and Allied Insurance Co., backed by billionaire investor Rakesh Jhunjhunwala, jumped the most on record on the Bombay Stock Exchange after Credit Suisse initiated coverage with an 'outperform' citing its largest agency network, continued expansion and an attractive risk-reward ratio.

• The price target has been set at Rs 600, an implied return of 15.36%.

• Trading volume is nearly quadruple the 30-day average. Of the 14 analysts tracking the company, 10 maintain 'buy', one suggests 'hold' and three recommend 'sell'. The return potential of the stock is 44.1%.

Source: Credit Suisse note, Bloomberg

Shares of Canara Bank gained over 7%, the most in over five months.

• Canara Bank raised the Marginal Cost of Funds Based Lending Rate (MCLR) with effect from today, the lender said in an exchange filing post market hours on Wednesday.

• The lender also hiked Repo Linked Lending Rate (RLLR) from 7.30% to 7.80%, effective from today.

• Trading volume is thrice the 30-day average. Share price crossed above 50-day moving average, indicating potential upward price momentum. Of the 14 analysts tracking the company, 13 maintain 'buy' and one suggest 'sell'. The return potential of the stock is 30%. Canara Bank is the top gainer in Nifty PSU Bank index.

Source: Exchange filing, Bloomberg

It is unfair to blame GST for extraneous factors like economic factors and pandemic

• Business processes and IT systems have stabilized.

• GST Council's pronouncements are trade facilitative and the tightening measures are meant to ensure the honest taxpayer has a level playing field; not increase compliance burden.

Source : Vivek Johri, Chairman CBIC at PHD House

Shares of Bharat Heavy Electricals rose 2.5%, the most in two weeks after the company commissioned floating solar PV plant at 100 Mega Watt at NTPC Ramagundam in Telangana.

The plant is installed across natural water reservoir and will ensure that aquatic ecosystem is maintained while producing clean power, the company said in an exchange filing during market hours on Thursday.

All major components of the plant, solar PV modules, floaters, transformers, switchgear and cables are indigendous. The company has now commissioned three floating solar plants in ten months.

• 25 MW at NTPC Simhadri

• 22 MW at NTPC Kayamkulam

• 100 MW at NTPC Ramagundam

Of the 23 analysts tracking the company, one suggests 'buy', four recommend 'hold' and 18 maintain 'sell'. The return potential of the stock is -12.4%.

Source: Exchange filing, Bloomberg

Shares of realty firms advanced with all the constituents of Nifty Realty index surging in today's session.

• This comes amid strong business updates from firms like Sobha. Knight Frank India, in its latest report said that residential sector has recorded a 9-high high in sales volume in the first half of the calendar year 2022.

• Residential sector grow 60% YoY in H1CY2022 to 1,58,705 units across top eight cities, highest since sales of 1,85,777 units in 2013.

• Mumbai, NCR and Bengaluru led the other cities in terms of residentials ales.

Source: Knight Frank India report, Bloomberg

Shares of equipment maker for oil and gas sector, Deep Industries surged over 9.8%, the most in five weeks.

• The rise comes after the company received Leter of Awards from ONGC, worth Rs 150.24 crore. The order pertains to charter hiring of two 1000 HP Mobile Drilling Rigs for a period of three years.

• Trading volume is five times the 30-day average.

Source: Exchange Filing, Bloomberg

Shares of Sobha jumped nearly 9%, the most in over five weeks. The stock is on course to extend winning streak for third day, in which it has gained 14%.

The company reported highest ever quarterly sales volume in Q1, in its operational update for Q1FY2022-23 after market hours on Wednesday.

• Total new sales in Q1 at Rs 1,358,719 square feet Vs 8,95,539 square feet YoY.

• Total sales value at Rs 1,145.5 crore Vs Rs 682.9 crore YoY

• Average price realisation at Rs 8,431 per square feet Vs Rs 7,526 per square feet.

• Sobha's share of sales value is Rs 951.7 crore, highest ever.

• The company also launched three new residential projects in Bengaluru with over 2 million square feet of saleable area in the quarter-ended June.

• The company said that it continued with its calibrated price increases in all projects and cities to mitigate the adverse impact due to the high inflation and elevated construction costs.

Trading volume is nearly 20-times the 30-day average. Of the 17 analysts tracking the company, 15 maintain 'buy' and two suggest 'hold'. The return potential of the stock is 25.6%. The stock is among the topgainers in Nifty Realty index

Source: Exchange filing, Bloomberg

Shares of Lupin rose over 3% in early trade, the most in over two weeks, before trimming the gains. The advance comes after the company received Establishment Inspection Report (EIR) from U.S. FD for its Somerset, NJ Manufacturing facility, according to an exchange filing before market hours on Thursday.

• U.S. FDA concluded its inspection of the facility in March 2022 and determined the inspection classification is VAI (Voluntary Action Indicated). Lupin is the third largest pharmaceutical company in the U.S. by prescriptions.

• Trading volume is quadruple the 30-day average. Of the 43 analysts tracking the company, 13 maintain 'buy', 15 suggest 'hold' and 15 recommend 'sell'. The return potential of the stock is 9.3%.

Source: Exchange filing, Bloomberg

Titan Co Ltd. surged the most in nine months on the back of strong operational updates for Q1FY2022-23. For Titan, it is a return to normalcy after a gap of two years. The company termed the quarter-end June as a 'near-normal' quarter in which sales rose 205% YoY on a low base.

• The company logged 3-year CAGR of 20.5% over Q1FY20 (April-June 2019), the only non-disrupted quarter in three years. Titan's jewellery segment rose at a rapid clip, with revenue tripling YoY. Gold jewellery outperformed studded sales by nearly three-times. The company commissioner six new domestic stores in Tanishq and 13 in Dubai.

• At least nine analysts tracking the company reiterated 'buy' since the Q1 update. They believe that the uptick in revenue across segments should drive an upgrade of consensus estimates. Motilal Oswal termed Titan the 'Vanguard' among organised players in the jewellery industry as it preferred the company as the top pick in largecap consumption space in India.

• Trading volume is more than five times the 30-day average. Of the 31 analysts tracking the company, 21 maintain 'buy', six suggest 'hold' and four recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 20.6%. The stock has underperformed benchmarks in 2022, falling over 16% compared to 6% fall in Sensex.

Source: Exchange filing, Brokerage notes, Bloomberg

India's stock benchmarks rose, aided by gains in consumer durables, metal, banking, auto nd consumer discretionary stocks, as brent crude prices slid below $100 per barrel.

The S&P BSE Sensex rose over 450 points (0.84%) to 54,204.67, as the 30-stock gauge reclaimed 54,000 mark after nearly four weeks. The NSE Nifty 50 advanced by similar magnitude to 16,118.80. Today 46 of the Nifty 50 stocks rose while four fell.

The broader indices almost mirrored their larger peers.All 19 sectoral indices compiled by BSE Ltd. advance with Consumer Durables index adding nearly 3%.

The market breadth is skewed in the favour of bulls. About 1,783 stocks rose, 415 fell and 83 remained unchanged.

• Yield on the 10-year bond was little changed at 7.30% at the open.

Source: Bloomberg

Agri Machinery, division of Escorts Kubota, to raise tractor prices starting July 10.

• Escorts said price hike was needed due to a steady rise in commodity prices to partially offset the rise in input cost due to continuing inflation.

• The increase in prices would vary across models and variants.

Source: Exchange filing

Rupee rises 0.34% (27 paise) against the U.S. dollar, at the open.

• This comes after RBI's measures to draw forex flows to stem the fall of Rupee.

• Rupee slid to record low 79.37 during the session on Wednesday before trimming losses to close near record low.

Source: Bloomberg

Tax department tells banks that their mutual fund units using any brand components should pay royalty or similar fees to the parent along with 18% GST, The Economic Times reported citing people with knowledge of the matter.

• Banks that have come under the taxman's lens include SBI, ICICI Bank, HSBC, Axis Bank.

• Most banks do not charge royalty, which is set to be challenged by Tax Department, according to the report.

• SBI, ICICI Bank, Axis Bank did not respond to queries of ET. HSBC declined to comment.

Source: The Economic Times

• Titan: The first quarter of FY23 was a near normal first quarter after a gap of 2 years. Sales grew 205% year-on-year on a low base and clocked 3-year CAGR of 20.5% over Q1FY20, the only non-disrupted first quarter in the last 3 years.

• NTPC/Gujarat Alkalies and Chemicals: The companies signed a Memorandum of Understanding to collaborate in the field of renewable energy, green methanol and green ammonia and mutually explore the opportunities for the supply of 100 MW power. This would be the first commercial scale green Ammonia and Green Methanol project in the country.

• Sobha: The company’s sales volume rose 51.7% yoy to 13.6 lakh sq. ft. Total sales value rose 67.7% YoY to Rs 1,145 crore. Average price realization increased to Rs 8,431 in quarter ended June as compared to Rs 7,626 a year ago.

• Equitas Small Finance Bank: The bank’s advances grew 22% YoY to 21,699 crore in the quarter from April to June. Deposits grew 19% to 20,386 crore in Q1 of FY23. CASA ratio stood at 51.74% on June 30.

• Raymond: The company has signed a joint development agreement for a premium residential project in Bandra, Mumbai. Its revenue potential is estimated at Rs 2,000 crore.

• City Union Bank: The bank will raise Rs 500 crore through the QIP route

• PVR: To open 4-screen multiplex at Odeon Mall, Ghatkopar, Mumbai.

• Titagarh Wagons: HDFC Mutual Fund cuts stake to 7.02% from 9.16% in the company.