Sensex, Nifty Gain Most In Over Two Weeks Aided By FMCG, Auto Stocks

India's stock benchmarks advanced, aided by gains in consumer discretionary, FMCG, Auto, consumer durables and realty stocks, amid fall in crude oil prices.

The Sensex rose 1.16% (617 points), the most in over two weeks since June 21 to 53,750.97, an over three-week closing high.

The Nifty also advanced by similar magnitude to settle just a tad below 16,000. For the second day in a row, the Nifty reclaimed 16,000 in intraday trade. About 40 of the Nifty 50 stocks rose while 10 fell. Britannia, Bajaj Finance, Bajaj Finserv and HUL gained over 4% in Wednesday's session.

The MidCap gauge outperformed their larger peers, rising 1.76% while SmallCap measure underperformed, gaining 0.9%. Barring S&P BSE Energy and Metal, all the other 17 sectoral indices compiled by BSE advanced.

The market breadth was skewed in the favour of bulls. About 1,827 stocks rose, 1,473 fell and 136 remained unchanged.

• Yield on the 10-year bond fell 11bps to 7.28%, during the session. The yield trimmed losses to close at 7.29%, a six-week low.

• 10-year bond yield declined the most in over two weeks amid fall in crude oil prices.

Source: Bloomberg

• The Indian currency fell 0.02% (2 paise) to record low of 79.37 against the U.S. dollar, during the session.

• The Rupee erased losses and closed at 79.30

Source: Bloomberg

Shares of realty stocks rose and Nifty Realty index gained nearly 2%.

• The rise comes amid JM Financial's note on the sector, which showed healthy demand momentum in residential sector despite an expected QoQ fall in booking value due to seasonality impact.

• The brokerage identified DLF, Macrotech Developers, Oberoi Realty and Prestige Estates as preferred picks.

Source: Bloomberg, JM Financial note

Aviation regulator DGCA said SpiceJet has failed to establish safe, efficient and reliable air services under Aircraft Rules, 1937.

• DGCA's audit of SpiceJet in September 2021 found component suppliers not being paid on a regular basis leading to shortage of spares.

• SpiceJet management has been given 3 weeks to respond to show-cause notice.

Source: PTI

Shares of Delhivery climbed over 4.3%, the most in over two weeks.

• The rise comes after Edelweiss initiated coverage of the stock with a 'buy' recommendation on Monday. The target price is fixed at Rs 650, an implied return of 28.47%.

• The stock gained nearly 4% this week.

• Edelweiss identified the company's superior aggregation capability, market share growth in faster-growing areas, leadership in e-Commerce express markets, Ebitda breakeven, rising margins, strong balance sheet as major positives.

• The brokerage added that all the triggers are in place for company's growth uptick and estimated an EBITDA margin of 9% and turn FCF-positive by FY25E. It also anticipated a 30% revenue CAGR over FY22-25E.

• Of the eight analysts tracking the company, four maintain 'buy', three suggest 'hold' and one recommends 'sell'. The return potential of the stock is 12.6%.

Source: Bloomberg, Edelweiss note

• European markets rise, led by gains in travel and leisure stocks. Focus shifts to the minutes of the latest FOMC meeting of U.S. Federal Reserve, scheduled to be released today.

Source: Bloomberg

Shares of Bajaj Hindusthan Sugar lost nearly 9.5%, steepest fall in over two weeks.

• The falls comes after Business Standard reported that lenders have declared Bajaj Hindusthan Sugar a non-performing asset (NPA) after the company failed to make payments related to debt, worth Rs 4,814 crore as of March 31, 2022, citing unnamed executives of two of the banks.

• The company, one of India's largest sugar manufacturers, also owed money to sugarcane farmers in Uttar Pradesh. All 14 sugar mills of the company are in Uttar Pradesh.

• The company's credit profile has been under pressure for a while and it has delayed payments to lenders, making it an NPA as of June-end, according to executives of two of the banks.

• Trading volume is quadruple the 30-day average.

Source: Business Standard, Bloomberg

India's stock benchmarks gained over 1%, aided by advances in auto, consumer durables, consumer discretionary, banking and realty stocks.

The Sensex rose over 600 points (1.15%) to 53,744.07. The Nifty 50 advanced by similar magnitude to reclaim 16,000 for the second day in a row. Today 40 of the Nifty 50 stocks rose while 10 fell.

The MidCap index almost mirrored Sensex and Nifty while the SmallCap underperformed, rising 0.6%. Fifteen of the 19 sectoral indices compiled by BSE Ltd. rose with Auto index adding 2.5%.

The market breadth is skewed in the favour of bulls. About 1,703 stocks rose, 1,456 fell an d 158 remained unchanged.

Shares of Aurobindo Pharma are on course to extend gains for the fourth day.

• The company's subsidiary Eugia Pharma received final approval from U.S. FDA to manufacture and market Triamcinolone Acetonide Injectable Suspension 200 mg/5 mL, 400 mg/10 mL, multiple-dose vials.

• The drug is therapeutically equivalent to RLD, Kenalog-40 Injectable Suspension, 40 mg/mL of Bristol-Myers Squibb.

• The drug, which is being launched this month, has an estimated market size of $73 million for twelve months ending May 2022, according to IQVIA.

• The drug is a glucocorticoid cortisteroid (anti-inflammation) and indicated for treatment of intramuscular and intra-articular inflammation.

Source: Exchange filing, Bloomberg

Dabur says consumption pressure continued across the sector in Q1 due to unprecedented inflation.

• Surge in inflation has hurt income available for spending on consumer staples, across urban and rural markets.

• The company's India business has been resilient despite challenging macro environment.

• Dabur India expects to report high single-digit revenue growth on very high base in Q1, according to quarterly business update.

• Food & Beverages vertical has seen strong double-digit growth, Home & Personal Care segment is likely to log record high single to low double-digit growth

• Healthcare vertical is likely to report decline while international business is estimated to register high single digit revenue growth in Q1 in constant currency terms.

• Dabur India says it is taking judicious price increases and cost saving initiatives to support margins amid unprecedented input cost pressure.

Source: Exchange filing

Godrej Consumer says short-term challenges like global commodity inflation, performance of Indonesia business continue to play out in Q1 as well.

• The company expects to deliver early double-digit sales growth on a high base, according to Q1 business update. On profitability front, the company estimates lower YoY EBITDA margins during Q1.

• Personal care segment sustained double-digit growth while home care witnessed low single-digit decline in sales.

• Indian FMCG industry continues to remain soft.

• Rural markets witnessed slower growth compared to urban.

• Recent correction in commodity prices and forecast of a good monsoon are encouraging factors.

Source: Exchange filing

Shares of Container Corp of India jumped over 6%, the most in nearly four weeks. The rise comes amid news reports stating that the cabit may consider a proposal to cut land licensing fees and increase lease period for railway land on July 6.

• Trading volume is nearly 11 times the 30-day average. Share price crossed above 50-day and 200-day simple moving average, indicating potential upward price momentum.

• Of the 35 analysts tracking the company, 29 maintain 'buy and six recommend 'hold'. The trading volume on the stock is 13.3%.

Source: Bloomberg

Shares of Macrotech Developers gained nearly 4.7%, the most in four weeks.

• The rise comes after the company informed exchanges that Q1 pre-sales rose 194% YoY to Rs 1,857 crore. The company logged 75% of sales growth required to meet full-year guidance in Q1 itself.

• Trading volume is lesser than 30-day average. Of the 16 analysts tracking the company, 13 maintain 'buy', two suggest 'hold' and one recommends 'sell'. The return potential of the stock is 22.8%

• JM Financial reiterated 'buy' on Macrotech and kept the target price unchanged at Rs 1,410 on Wednesday. The implied return is 31.53%.

Source: Exchange filing, Bloomberg

• Shares of refinery stocks Mangalore Refinery & Petrochemicals and Chennai Petroleum Corp tumbled in trade.

• The decline comes after fall in crude oil prices. Brent Crude fell over 9% yesterday and is hovering around $104 per barrel.

Source: Bloomberg

India's stock benchmarks rose, aided by gains in consumer durables, banking, information technology stocks, amid moderation in crude oil prices

The S&P BSE Sensex rose 0.45% (over 230 points) to 53,370.96. The NSE Nifty 50 also advanced by similar magnitude to 15,860.85. About 35 of Nifty 50 stocks rose, 14 fell and one remained unchanged.

The broader indices almost mirrored their larger peers. Sixteen of the 19 sectoral indices compiled by BSE Ltd. advanced with Auto and Bankex indices rising over 0.75%. On the flipside, the Metal gauge shed nearly 2%.

The market breadth is skewed in the favour of bulls. About 1,506 stocks rose, 660 fell and 100 remained unchanged.

• Yield on the 10-year bond fell 9bps to 7.30% at the open, lowest in over a month since May 26, 2022.

• 10-year bond yield fell amid moderation in crude oil prices. Brent Crude fell over 9% yesterday and is hovering around $104 per barrel.

Source: Bloomberg

• Indian currency rose 12bps to 79.24 at the open.

• The Rupee slid to a record low of 79.36 against the U.S. dollar, on Tuesday.

Source: Bloomberg

Q1 pre-sales are at Rs 1,857 crore year-on-year, up 194%.

• 75% of sales growth required to meet full-year guidance achieved in Q1.

• Collections up 53% year-on-year to Rs 2,616 crore.

• Net debt for India business reduced by Rs 450 crore to Rs 8,858 crore.

• Lodha says good demand across segments is seen, no impact of macro-economic conditions on demand for housing from high credibility developers.

Source: Exchange filing

• Net Institutional Flows at Rs 1,038 crore on Tuesday, highest in over a month since May 30.

Source: NSE

• ONGC/Oil India/RIL: Crude oil rebounded above $100/barrel as banks including Goldman Sachs said a plunge driven by fears a recession will hurt demand was overdone.

• IOCL/BPCL/HPCL: Ethanol used for blending with petrol to the extent of 15% will be exempted from excise duty. Diesel blending will also be exempt up to 20%.

• Marico: Marico expects “mid-single-digit” decline in domestic volume for the quarter ended June 30 as steep price hikes led to downtrading across two of its largest brands.

• Biocon: The company has received EU GMP certification for its new monoclonal antibodies drug substance manufacturing facility in Bengaluru, following a GMP inspection in April 2022.

• Bajaj Finance: Assets under management rose 3.55% month-on-month to Rs 2.04 lakh crore in the quarter ended June, even as net liquidity surplus was Rs 11,550 crore.

• South Indian Bank: Advances grew 11% year-on-year and 4.8% sequentially to Rs. 62,095 crore. Deposits rose 4% over a year ago but fell 1% on a quarterly basis. The lender's CASA ratio stood at 34% in Q1 FY23 compared to 33% in Q4 FY22 and 30% in Q1 FY22.

• J Kumar Infraprojects: The company has received letter of acceptance from BMC for building Sewer Tunnel-Phase I from Don Bosco to New Malad IP. The project is worth Rs 571.01 crore, and the company has 60% stake in the JV which comes to Rs 342.60 crore.

• Garden Reach Shipbuilders: Inks pact with West Bengal to build an electric ferry.