Sensex Adds Over 400 Points; Nifty Gains Nearly 1%

India's stock benchmarks rebound after yesterday's fall, aided by auto, consumer discretionary, I.T. stocks.

The Sensex jumped over 440 points (0.86%) to 52,265.72. The 30-stock gauge rose to an intraday high of 52,516.79. The Nifty also advanced by similar magnitude to 15,556.65. Today, 45 of the Nifty 50 stocks rose while five declined.

The broader indices outperformed their larger peers, with both MidCap and SmallCap measures adding over 1.2%. Barring energy and oil & gas, all the other 17 sectoral indices compiled by BSE gained, with Auto index climbing nearly 4.5%

The market breadth is skewed in the favour of bulls. About 2,090 stocks rose, 1,214 declined and 130 remained unchanged.

• Yield on the 10-year bond added 3bps to 7.42% at the close.

Source: Bloomberg

• Indian Rupee rose 0.20% (16 paise) to 78.23 during the session.

• The currency pared gains to close at 78.31 against the dollar.

• Rupee hit a record low 78.39 on Wednesday.

Source: Bloomberg

Shares of Nazara Technologies jumped over 5.7% and are on course for best day in nearly six weeks

• JM Financial initiated coverage on the stock with 'hold' recommendation. The price target is set at Rs 1,070, an implied return of 6.92%.

• The company's presence across eSports, gamified learning, simulation has given the company a toehold across India's online gaming market, according to JM Financial. The brokerage expects Nazara's revenue to grow at 32% over FY22-25.

• Trading volume is nearly 1.5 times the 30-day average. Of the 10 analysts tracking the company, six maintain 'buy', two suggest 'hold' and two recommend 'sell'. The return potential of the stock is 58.3%.

Source: JM Financial note, Bloomberg

• Shares of I.T. services outsourcing firm Allsec Technologies surged nearly 14%, the most in over five weeks.

• The rise comes after the company and Quess Corp approved scheme of amalgamation which provides for merger of Allsec into Quess.

• Minority shareholders of Allsec will be issued equity shares of Quess at the ratio of 0.74:1. The merger is subject to shareholders' and regulatory approvals.

• Trading volume is 11 times the 30-day average.

Source: Exchange filing, Bloomberg

• World Crest has made no case that Yes Bank's voting right must be curtailed, high court bench says.

• Dish TV’s promoter entity World Crest argued against Yes Bank's right to vote.

• Since Yes Bank has already voted, its vote must not be given effect to, World Crest said.

Shares of Mumbai-based mobile communications solutions provider Route Mobile surged nearly 7.45%, the most in over three weeks.

• The rise comes after the company announced that it will consider a proposal for buyback of fully paid-up equity shares of the company on June 28.

• Trading volume is twice the 30-day average. Of the five analysts tracking the company, four maintain 'buy' and one suggests 'hold'. The return potential of the stock is 33.6%.

Source: Exchange filing, Bloomberg

• European markets decline as France/Germany PMI data for June remained weak. U.S. Federal Reserve's Chair Jerome Powell reiterated the central bank's effort to bring down inflation.

• Jerome Powell also hinted at a possible recession.

Source: Bloomberg

Shares of Sapphire Foods rose over 7.2%, most in over five weeks and Devyani gained over 2.7% after Kotak Institutional Equities initiated coverage on the stocks, citing potential resurgence of Yum franchisees in India.

Kotak Institutional Equities has a 'buy' recommendation on Sapphire Foods (target price: Rs 1,425, implied return of 40.25%). It has initiated coverage on Devyani International with 'add', the price target is set at Rs 151, an implied upside of 2.90%.

Kotak Institutional Equities

• Expects Yum franchisees to gain due to rise in ordering-in habits, sharper execution, plans to address under-penetration.

• Expects Devyani/Sapphire to deliver 18%/17% CAGR in store over FY2022-25E, ahead of other QSRs.

• Devyani and Sapphire Foods have emerged as the fastest growing QSRs in India.

• Believes that KFC is on a strong footing while potential turnaround in Pizza Hut can unlock meaningful value.

• Expects Yum's market opportunity split to be at 62:38 (Devyani : Sapphire Foods)

• Expects execution gap between the two players to continue to narrow.

Source: Kotak Institutional Equities note, Bloomberg

• Setu to become part of the Pine Labs ecosystem.

• Setu to retain its brand identity, customer base.

Source: Company Announcement

India's stock benchmarks are off day's high, but trading with gains, aided by auto, consumer discretionary stocks.

The Sensex rose 0.25% to 51,954.65. The 30-stock gauge added nearly 700 points to an intraday high of 52,516.79. The Nifty advanced by similar magnitude to 15,471.05. Today 33 stocks rose, 17 fell.

The broader indices outperformed their larger peers, with S&P BSE MidCap gaining 0.75% and SmallCap rising 0.44%. Fourteen of the 19 sectoral indices compiled by BSE Ltd. advanced, with Auto index surging nearly 3%.

The market breadth is skewed in the favour of bulls. About 1,927 stocks rose, 1,186 fell and 160 remained unchanged.

Tata Motors said a detailed investigation is currently being conducted to ascertain the facts of the “recent isolated thermal incident”.

• It added that this is the first incident after more than 30,000 EVs have cumulatively covered over 1 million km across the country in nearly 4 years.

• A video of Tata’s Nexon EV on fire did the rounds on social media yesterday.

Source: Press statement

Shares of Haryana-based granite kitchen sinks maker Acrysil rose over 14%, the most in three months.

• The company announced doubling of supply of quartz kitchen sinks to Ikea Supply AG (Switzerland), part of the International IKEA Group.

• The production will start from the end of July 2022 and supply will begin from August.

• Trading volume is nearly seven times the 30-day average. The stock is among the top gainers in S&P BSE SmallCap index (909 constituents).

Source: Exchange filing, Bloomberg

Shares of Vodafone Idea rose over 2.3%, on course to extend gains for the third day.

• In an exchange filing post market hours on Wednesday, the company said that it will defer the AGR related dues by four years with immediate effect.

• The amount of the AGR related dues aggregates to Rs 8,837 crore, to be paid in six equal annual instalments post moratorium period starting March 31, 2026.

• The company's board also approved a proposal to raise Rs 436 crore, on Wednesday. The funds will be raised by either issuing equity shares or warrants convertible into equities to Euro Pacific Securities. Euro Pacific Securities is a Vodafone Group entity and the promoter of Vodafone Idea.

• Of the 21 analysts tracking the company, six suggest 'hold' and 15 recommend 'sell'. The return potential of the stock is -15%.

Source: Exchange filing, Bloomberg

The hydrocarbon division of L&T Energy has secured three offshore packages from an overseas client. The company classified the contracts as 'large' which means that the order value is in the range of Rs 2,500 crore-Rs 5,000 crore.

• The scope of the order comprises Engineering, Procurement, Construction, and Installation for various new offshore jacket structures.

• Shares of L&T rose over 2.2%. Of the 40 analysts tracking the company, 39 maintain 'buy' and one suggests 'sell'. The return potential of the stock is 33.1%.

Source: Exchange filing, Bloomberg

Shares of Greenlam Industries climbed nearly 8% after the company entered into an asset purchase agreement with Bloom Dekor Ltd to buy laminate manufacturing plant in Gujarat on Wednesday. The scrip is on a five-day winning streak, gaining nearly 12% over the period.

• A total investment of Rs 51 crore (Rs 36 crore for acquisition of Bloom Dekor's facility and Rs 15 crore to operationalise) will be required for the purchase which will be financed through internal accruals

• The proposed capacity will be operationalised by Q2FY2022-23

• The laminate manufacturing plant has an existing capacity of 15.62 million sheets per annum and the capacity utilisation is 106% as on Q4FY2021-22.

• Trading volume is nearly nine times the 30-day average. Of the seven analysts tracking the company, six maintain 'buy' and one suggests 'hold'. The return potential of the stock is 8%.

Source: Exchange filing, Bloomberg

Shares of Hyderabad-based financial service firm Spandana Sphoorty Financial rose nearly 15%, the most in more than 11 weeks, after the company informed exchanges that it resolved all differences with the promoter and former MD Padmaja Gangireddy.

• This includes reconciliation of all historical matters by way of in-principle agreement, the company said in an exchange filing after the markets opened today.

• The company has entered into a settlement agreement with Padmaja Gangireddy.

• Trading volume is more than 58 times the 30-day average. All five analysts tracking the company maintain 'buy'.

Source: Exchange filing, Bloomberg

Shares of Bajaj Auto jumped over 3%, the most in over two weeks.

• The uptick comes after the company informed exchanges that it will further deliberate on the proposal for share buyback in its board meeting on June 27. Bajaj Auto had deferred the buyback decision on June 14.

• Trading volume is thrice the 30-day average. Of the 53 analysts tracking the company, 39 maintain 'buy', 11 suggest 'hold' and three recommend 'sell'. The return potential of the stock is 13.9%.

Source: Exchange filing, Bloomberg

Shares of IRB Infrastructure rose over 11.5%, the most in eight months.

• The rise comes after the company announced that it received Rs 308 crore towards part payment (75% of total arbitration award) from NHAI.

• In July 2021, IRB Pathankot Amritsar Toll Road, a subsidiary of IRB Infra won an arbitration award of 518 days extension in concession period and Rs 419 crore towards delay in completion of construction of Pathankot Amritsar BOT Project, for reasons not attributable to IRB Infra.

• NHAI had challenged the decision before Delhi High Court. Delhi HC had directed NHAI to release 75% of arbitration award to IRB Infra and upheld Arbitral Tribunal's decision.

• Trading volume is 11 times the 30-day average. Of the 11 analysts tracking the company, eight maintain 'buy' and three suggest 'hold'. The return potential of the stock is nearly 39%.

Source: Exchange filing, Bloomberg

Shares of Glenmark Pharmaceuticals fell over 4.3%, most in a week.

• The decline comes after the company informed exchanges post market hours on Wednesday that the U.S. FDA issued Form 483 with six observation.

• The U.S. drug regulator inspected Glenmark Pharma's formulation manufacturing facility in Baddi between June 13, 2022 and June 22, 2022.

• Glenmark Pharma has said that it will take all steps to address the concerns raised by U.S. FDA.

• Trading volume is more than seven times the 30-day average. Of the 20 analysts tracking the company, 12 maintain 'buy', seven suggest 'hold' and one recommends 'sell'.

Source: Exchange filing, Bloomberg

India's stock benchmarks opened higher, aided by gains in auto, telecom and information technology stocks.

The S&P BSE Sensex rose 0.40% to 52,029.02. The NSE Nifty 50 also advanced by similar magnitude to 15,482.60. Today, 41 stocks rose and nine fell.

The broader indices outperformed their larger peers, with S&P BSE MidCap rising 0.6% and SmallCap adding 0.7%. Barring Energy, Oil & Gas and Realty indices, all the other 16 sectoral indices rose, with Auto index gaining 1.5%.

The market breadth is skewed in the favour of bulls. About 1,695 stocks rose, 608 fell and 93 remained unchanged.

• Yield on the 10-year bond fell 4bps (nearly 0.5%) to 7.36% at the open.

Source: Bloomberg

• Indian currency rose 0.19% (15 paisa) to 78.24 against the dollar.

• Rupee fell to a record low 78.39 on Wednesday

Source: Bloomberg

• The company has appointed former Brigade Group executive Rajendra Joshi as CEO for the Bengaluru market.

• The company’s first project in Bengaluru has been signed through the joint development agreement by acquiring 100% equity shares of a company namely G Corp Homes for Rs 21.1 crore.

• The project has gross development value potential of Rs 1,200 crore and launch is expected in the next 6-12 months.

• The entry into Bengaluru does not change the debt reduction guidance for FY23.

Source: Exchange filing

• Net institutional outflows at Rs 1,061 crore

• FII selling streak continue for 17th day.

• Domestic institutional investors have remained buyers for 49 sessions in a row, since April 11.

Source: NSE

• Energy-related shares may fall after oil fell to its lowest in over a month.

• Stocks To Watch: Reliance Industries, HPCL, BPCL, ONGC, Oil India.

Source: Bloomberg

• Canara Bank

• Cigniti Technologies

• Hindustan Unilever

• Kansai Nerolac

• Linde India

• Newgen Software

• Tata Elxsi

Source: BSE

• NTPC: The state-run power giant said it may have to add new coal power capacity to meet the country’s surging demand for electricity, a policy shift triggered by recent energy shortages.

• Vodafone Idea: Vi's board has approved fundraising worth Rs 436.21 crore via a preference issue. The company will issue 42.76 crore equity shares or warrants convertible into equity shares at Rs 10.20 apiece to its promoter and Vodafone Group company Euro Pacific Securities.

• Bajaj Auto: The Pune-based automaker will consider a share buyback proposal on June 27, days after it scrapped a previous plan to do so.

• BPCL: The state-run refiner has received an order from the Ministry of Corporate Affairs sanctioning scheme of arrangement of Bharat Oman Refineries with the company.

• IRB Infrastructure: The roads builder has received Rs 308 crore out of a total claim of Rs 419 crore from IRB Pathankot Toll Road.

• GPT Infraprojects: The company has bagged an order worth Rs 292 crore from East Coast Railway to build viaducts, major bridges, site facilities and other allied works.

• DCB Bank: The lender has appointed Satish Gundewar as the chief financial officer to replace Bharat Laxmidas Sampat, who is retiring.

• Quess Corp: Allsec Technologies will merge with the company in an all-stock deal. Minority shareholders of Allsec will be issued equity shares of Quess Corp. in the ratio of 74:100.

• Imagicaa Entertainment: The company has completed the debt resolution process and has inducted directors from the new promoter group on the board. It approved allotment of equity shares and 0.01% redeemable non-convertible preference shares on preferential basis as part of the resolution plan agreed by the lenders.

• BLS International: The company has signed an agreement with the West Bengal government for computerisation and e-governance of registration offices.