Stock Market Today: Sensex, Nifty Decline After Record High Close In Previous Trade; FPIs Turn Net Sellers
Sensex was down 284 points or 0.45% at 63,238.89 while Nifty was 86 points or 0.45% lower at 18,771.25.
KEY HIGHLIGHTS
Indian Rupee Strengthens Against The U.S. Dollar
Sensex, Nifty Snap Two Days Of Gain: Closing Bell
Hindustan Construction Shares Jump Most In Six Months After 3.4% Equity Change Hands In Seven Bunches
GE Aerospace Confirms Hindustan Aeronautics' Order For Fighter Jet Engines
Fortis To Sell Chennai Hospital For Rs 152 Crore
FPIs Turn Net Sellers
Overseas investors turned net sellers on Thursday a day after buying the highest amount of Indian equities in four months.
Foreign portfolio investors offloaded stocks worth Rs 693.3 crore, according to data from the National Stock Exchange.
Domestic institutional investors remained net buyers for the third straight day and bought equities worth Rs 219.4 crore, the NSE data showed.
Foreign institutions net bought Rs 29,718 crore worth of equities in June. They have been net buyers of Rs 58,977 crore worth of Indian equities so far in 2023, according to the National Securities Depository Ltd.
Yield On The 10-Year Bond Rises
The yield on the 10-year bond rose 3 bps to close at 7.09% on Thursday, it closed at 7.07% on Wednesday.
Source: Bloomberg
Indian Rupee Strengthens Against The U.S. Dollar
The local currency strengthened about 8 paise to close at 81.95 against the U.S. dollar on Thursday.
It closed at 82.04 on Wednesday.
Source: Bloomberg
Sensex, Nifty Snap Two Days Of Gain: Closing Bell
India's benchmark stock indices swung between gains and losses to end lower after Sensex hit a fresh record high in pre-open and both indices dropped at opening on Thursday. While, I.T. and PSU banks were the top losing sectors, media and metal sectors advanced. ICICI Bank Ltd., and HDFC twins led the positive change, whereas Infosys Ltd., and RIL Ltd. dragged.
Asian markets declined in trade as Japan’s Nikkei index dropped 0.92%. South Korean stocks ticked higher, Australian shares dropped and markets were closed for holidays in Hong Kong, mainland China and Taiwan, reducing activity in region.
Powell renewed his warning that higher rates were needed, telling Congress during his semi-annual report that two more rate hikes this year was “a pretty good guess.”
The S&P BSE Sensex Index was down 284 points or 0.45% at 63,238.89 while the NSE Nifty 50 Index was 86 points or 0.45% lower at 18,771.25.
HDFC Bank Ltd., HDFC Ltd., Larsen & Toubro Ltd., ICICI Bank Ltd., and ITC Ltd. were positively adding to the change.
Whereas, Reliance Industries Ltd., Infosys Ltd., Bajaj Finserv Ltd., Asian Paints Ltd., and Tata Steel Ltd. were negatively contributing to the change.
The broader market indices underperformed the larger peers; the S&P BSE MidCap Index was down 1.07%, whereas S&P BSE SmallCap Index was 0.64% lower.
All the 20 sectors compiled by BSE declined with S&P BSE Realty and S&P BSE Utilities falling the most.
The market breadth was skewed in the favour of the sellers. About 1,331 stocks rose, 2,190 declined, while 134 remained unchanged on the BSE.
Hindustan Construction Shares Jump Most In Six Months After 3.4% Equity Change Hands In Seven Bunches
Shares of Hindustan Construction Co. rose the most in over six months after 3.4% equity changed hands in nine bunches. Around 5.22 crore shares changed hands in multiple large trades for Rs 77.47 crore, as per the Bloomberg data.
Scrip rose 11.99% to Rs 20.55 apiece as of 2:59 p.m., compared to a 0.35% decline in the NSE Nifty 50. It rose as much as 13.35% intraday, the most since Dec. 2, 2022.
The average traded volume so far in the day stood at 6.1 times its monthly average. The relative strength index was at 70, implying that the stock may be overbought.
Out of the 10 analysts tracking the company, three maintain a 'buy' rating, two recommend a 'hold' and five suggest to 'sell' the stock, as per the Bloomberg data.
The average calculated from the 12-month price target given by analysts implies a potential downside of 11.6%.
Source: Bloomberg, Exchange filing
GE Aerospace Confirms Hindustan Aeronautics' Order For Fighter Jet Engines
GE Aerospace has signed an MoU with Hindustan Aeronautics to coproduce Tejas F414 engines in India.
Deal part of IAF’s Light Combat Aircraft Mk2 program.
Source: Press Release
Fortis To Sell Chennai Hospital For Rs 152 Crore
Fortis Healthcare will be selling it's Vadapalani hospital in Chennai to Sri Kauvery Medical Care for Rs 152 crore
Source: Exchange filing
Nifty Midcap 100 Declines Nearly 1%
Nifty Midcap 100 Index declined on Thursday, snapping eight days of gains. It has risen as much as 4.28% from June 12 to June 21.
The index declined as much as 0.93% to 35,294.05 points, as of 2:07 p.m.
Source: Bloomberg
European Markets Open Lower
L&T Signs Pact With DRDO For Submarine Propulsion Systems
L&T to provide two Air Independent Propulsion Systems for the Indian Navy's Kalvari submarines
Source: Exchange filing
Stocks In Focus: Glenmark, Lupin, NTPC, HDFC Life, Metal Stocks And More
Talking Point: Manpreet Gill On Central Bank Action, Emerging Markets & More
Stocks At 52-Week High Intraday
Rail Vikas Nigam Wins Contracts Worth Rs 281 Crore From Madhya Pradesh Government
Rail Vikas Nigam emerges as the lowest bidder for two projects worth Rs 281 crore.
The project is commissioned by the MP Poorv Kshetra Vidyut Vitaran Co. in Jabalpur.
Source: Exchange filing
Sensex, Nifty Marginally Lower As Infosys, RIL Drag; PSU Banks Under Pressure: Midday Market Update
India's benchmark stock indices swung between gains and losses after Sensex hit a fresh record high in pre-open and both indices dropped at opening on Thursday. The indices had advanced for the second day to end at a record close on Wednesday. While, I.T. and PSU banks were under pressure, media and auto sectors advanced. ICICI Bank Ltd., and HDFC twins led the positive change, whereas Infosys Ltd., and RIL Ltd. dragged.
Asian markets headed for its first advance this week as a rally in Japanese shares provided a counterweight to global markets facing the prospect of further interest rate hikes from the Federal Reserve.
A modest 0.5% advance for Japan’s Topix index on Thursday added to a string of gains that’s taken the benchmark to the highest level since 1990. South Korean stocks also ticked higher, Australian shares dropped and markets were closed for holidays in Hong Kong, mainland China and Taiwan, reducing activity in region.
Futures contracts for the S&P 500 and Nasdaq 100 edged lower after after the two benchmarks fell for a third consecutive session Wednesday. Powell renewed his warning that higher rates were needed, telling Congress during his semi-annual report that two more rate hikes this year was “a pretty good guess.”
As of 12:01 p.m., the S&P BSE Sensex Index was down 92 points or 0.15% at 63,430.96 while the NSE Nifty 50 Index was 21 points or 0.11% lower at 18,835.95.
HDFC Bank Ltd., ICICI Bank Ltd., HDFC Ltd., ITC Ltd., and Axis Bank Ltd. were positively adding to the change.
Whereas, Infosys Ltd., Reliance Industries Ltd., Bajaj Finserv Ltd., Tata Steel Ltd., and Hindustan Unilever Ltd. were negatively contributing to the change.
The broader market indices underperformed the larger peers; the S&P BSE MidCap Index was down 0.54%, whereas S&P BSE SmallCap Index was 0.05% lower.
Fourteen out of the 19 sectors compiled by BSE declined with S&P BSE Information Technology and S&P BSE Power falling the most, on the other hand, five sectors advanced.
The market breadth was skewed in the favour of the sellers. About 1,578 stocks rose, 1,737 declined, while 159 remained unchanged on the BSE.
L&T Technology Services Extends Partnership With PCT
L&T Technology Services has announced an extension of its partnership with PCT to engineer solutions for aerospace, defense and transportation sectors.
Company to provide mutual clients with digital support for design and manufacturing.
Source: Exchange filing
Mankind Pharma Shares Gain After Kotak Initiates Coverage With 'Add'
Shares of Mankind Pharma Ltd. rose after Kotak Institutional Equities initiated coverage with an 'add' on the company.
"It has built a strong distribution network, which, along with its assertive marketing, has helped create megabrands across prescription and over-the-counter [segments]," the brokerage said in a June 21 note.
Kotak has set a target price of Rs 1,875, implying a potential upside of 10.5%.
The brokerage expects a 22% compound annual growth rate in adjusted Ebitda and 15% in sales, led by "deepening presence in existing markets, improved productivity in specialty divisions, entry into newer categories, and steady easing of raw material pressures", the note said.
It also expects a 37% CAGR in free cash flow over the next three years, with "industry-leading return ratios".
Here are some of the key risks for the company according to Kotak:
Inefficient capital allocation.
Adverse outcome from the recent tax raids.
The emergence of e-pharmacies.
Disruptions in the domestic branded generics market due to trade generics/Jan Aushadhi.
Raw material volatility (given the lower extent of backward integration).
"Mankind has the most well-rounded therapeutic mix among peers, with strong brands across therapies," it said.
The company's top 25 brands are priced at a 21% discount compared to its key competitors, though the differential has narrowed, the brokerage said.
Mankind sets itself apart from its competitors through its OTC segment, where it is a leader in key categories with a clear domestic focus and agile decision-making, the note said.
Sugar Company Stocks Gain
Shares of sugar companies were trading higher on Thursday as compared to 0.04% declined in the NSE Nifty 50 Index.
Shree Renuka Ltd., Bajaj Hindusthan Ltd., Balrampur Chini Ltd., Dwarikesh Sugar Ltd., Rajshree Sugar Ltd. all rose above 3%.
Source: Bloomberg
Venus Remedies Gets Marketing Approval In Spain For Last-Recourse Antibiotic
Venus Remedies, via its German subsidiary Venus Pharma, gets marketing authorisation in Spain for Meropenem, a last-recourse antibiotic.
Source: Exchange filing
JSW Energy Shares Hit Five-Month High After Antique Upgrades To 'Buy'
Shares of JSW Energy Ltd. rose to a five-month high after Antique Stock Broking upgraded the stock to 'buy' from a 'sell' rating. The price target was set at Rs 316 per share after the upgrade, implying a 15% upside from Wednesday's close.
The brokerage described the company as the best reflection of India's energy transition with its focus on renewable energy and storage.
Antique Stock Broking Upgrades JSW Energy To 'Buy'
Upgrades to 'buy' from 'sell' with a price target set to Rs 316 apiece, implying a 15% upside from last price.
Sees the company as the “best proxy for energy transition” in India. With a renewed focus on renewable energy and storage, “JSW remains the best proxy for energy transition,” ASB analyst Rohit Natarajan.
JSW Energy's operating profit will touch Rs 8,000 crore by the end of FY25.
Ebitda will be boosted by rapid commissioning of 10 GW of installed capacity.
Shares of JSW Energy Ltd. rose 2.93% to Rs 282.35 apiece as of 10:21 a.m., compared to a 0.02% advance in the NSE Nifty 50. It rose as much as 3.79% intraday, hitting Rs 284.7 apiece which is the highest in over five months since Jan. 18, 2023, when the stock hit Rs 285.55 per share.
The average traded volume so far in the day stood at 10 times its monthly average. The relative strength index was at 66.6.
Out of the 10 analysts tracking the company, three maintain a 'buy' rating, two recommend a 'hold' and five suggest to 'sell' the stock, as per the Bloomberg data.
The average calculated from the 12-month price target given by analysts implies a potential downside of 11.6%.
Source: Bloomberg, Exchange filing
Nifty Inches Closer To Record High
Delhivery Shares Hit Eight-Month High After Pre-Market Trade
Shares of Delhivery Ltd. hit an eight-month high on Thursday after 2.5% of its equity changed hands in a large trade.
At least 1.84-crore equity shares were traded pre-market, according to Bloomberg.
Shares of Delhivery advanced as much as 7.12% after changing hands, only to pare gains and fall back to a positive 0.95%, trading at Rs 392.3 apiece as of 10:00 a.m., compared to a flat NSE Nifty 50.
The average traded volume so far in the day stood at 89.1 times its monthly average. The relative strength index was at 64.76, implying that the stock may be overbought.
Out of the 22 analysts tracking the company, 15 maintain a buy rating on the stock, five recommend a hold and two suggest sell, according to Bloomberg data. The average 12-month consensus price target implies a potential upside of 7.4%.
Sansera Engineering Jumps 8% To Hit Record After 8.3% Equity Changes Hands In Two Blocks
Shares of Sansera Engineering Ltd. hit record high after two block trades on Thursday. About 8.3% equity changed hands in the pre-open session.
Around 44 lakh and 21.2 lakh shares changed hands in two blocks each. Client Ebene will sell 47.8 lakh shares, or 9%, and CVCIGP II Employee Ebene will sell 26.8 lakh shares, or 5.1%, in a large trade on June 22, according to terms of the deal reviewed by BQ Prime.
The shareholders aim to raise up to Rs 627.5 crore from the stake sale on the higher end of the price band. The sellers are subject to a 90-day lock-in period, according to the terms. Nomura is the sole placement agent for the deal.
Shares of Sansera Engineering Ltd. rose 8.62% to Rs 914.55 apiece as of 9:52 a.m., compared to a 0.02% advance in the NSE Nifty 50. It rose as much as 8.62% intraday, hitting a record high at Rs 914.55 apiece.
The average traded volume so far in the day stood at 54.7 times its monthly average. The relative strength index was at 76, implying that the stock may be overbought.
Six analysts tracking the company maintain a 'buy' rating on the stock, as per the Bloomberg data.
The average calculated from the 12-month price target given by analysts implies a potential downside of 10.6%.
Source: Bloomberg, Exchange filing
Broader Markets Open Mixed
The broader market indices were mixed; the S&P BSE MidCap Index was down 0.01%, whereas S&P BSE SmallCap Index was 0.25% higher.
Ten out of the 19 sectors compiled by BSE declined with S&P BSE Information Technology falling the most, on the other hand, nine sectors advanced.
The market breadth was skewed in the favour of the buyers. About 1,718 stocks rose, 880 declined, while 119 remained unchanged on the BSE.
Source: BSE
Top Movers On The Nifty 50 Index
ICICI Bank Ltd., HDFC Bank Ltd., HDFC Ltd., Reliance Industries Ltd., and ITC Ltd. were positively adding to the change.
Whereas, Infosys Ltd., Tata Steel Ltd., Kotak Mahindra Bank Ltd., Hindustan Unilever Ltd., and Axis Bank Ltd. were negatively contributing to the change.
Sensex, Nifty Open Lower: Opening Bell
India's benchmark stock indices opened lower despite Sensex hitting a record high in pre-open on Thursday.
Asian markets were rangebound following another decline on Wall Street as Federal Reserve Chair Jerome Powell stuck to the script of higher interest rates to tame inflation.
Gains for Japanese and South Korean stocks dragged a gauge of the region’s equities higher, offsetting a drop for Australian shares. Markets in Hong Kong, mainland China and Taiwan are closed for holidays, reducing activity in region.
Futures contracts for the S&P 500 and Nasdaq 100 were little changed after the two benchmarks fell for a third consecutive session Wednesday as investors rethink the bullish spirits unleashed by last week’s Fed rate pause.
Powell renewed his warning that higher rates were needed, telling Congress during his semi-annual report that two more rate hikes this year was “a pretty good guess.”
At pre-open, the S&P BSE Sensex Index was up 79 points or 0.12% at 63,601.71, a record high, while the NSE Nifty 50 Index was 3 points or 0.02% lower at 18,853.60.
Sensex Hits Fresh Record In Pre-Open, Nifty Drops
At pre-open, the S&P BSE Sensex Index was up 79 points or 0.12% at 63,601.71 while the NSE Nifty 50 Index was 3 points or 0.02% lower at 18,853.60.
Source: Bloomberg
Yield On The 10-year Bond Flat
The yield on the 10-year opened flat at 7.06% on Thursday, it closed at 7.07% on Wednesday.
Source: Bloomberg
Indian Rupee Strengthens Against The U.S. Dollar
The local currency strengthened 9 paise to open at 81.95 against the U.S. dollar on Thursday.
It closed at 82.04 on Wednesday.
Source: Bloomberg
Trade Talk: IT Sector Rolling, All Eyes On Accenture Earnings
SEBI Relaxes SCRR Rules For HDFC Warrants Listing After Merger With HDFC Bank
HDFC warrants will continue to trade under the name of HDFC Bank as SEBI relaxes SCRR.
Warrant holders can exchange HDFC warrants for the shares of HDFC Bank on the basis of share exchange ratio till Aug. 10, 2023
Alert: SCRR Is Securities Contract (Regulations) Rule
Source: Exchange filing
Tech May See Some Upside: Trade Setup
Global Cues
U.S. Dollar Index at 102
U.S. 10-year bond yield at 3.72%
Brent crude down 0.08% at $77.06 per barrel
Nymex crude down 0.08% at $72.47 per barrel
SGX Nifty down 0.25% at 18,861 as of 8 a.m.
Bitcoin up 0.42% at $30,110.81
Trading Tweaks
Price Band Revised From 10% To 5%: PTC Industries
Price Band Revised From 5% To 20%: NIIT
Ex-Date Dividend: Tata Steel, Rainbow Children's Medicare, eMudhra, Tata Elxsi
Ex-Date Annual General Meeting: Tata Steel, Rainbow Children's Medicare, eMudhra, Tata Elxsi, Orient Green Power Company
Record-Date Dividend: Rainbow Children's Medicare
Record-Date Annual General Meeting: Rainbow Children's Medicare
Move Into Short-Term ASM Framework: DCX Systems
Move Out Of Short-Term ASM Framework: KPI Green Energy, Tata Teleservices (Maharashtra)
Block Deals
Shriram Finance: Piramal Industries sold 3.13 crore shares (8.32%), the Government of Singapore Investment Corporation bought 91.12 lakh shares (2.43%), Societe Generale bought 30.4 lakh shares (0.81%), BNP Paribas Arbitrage bought 21.26 lakh shares (0.56%), Ghisallo Master Fund bought 20 lakh shares (0.53%), Blackrock Global Funds World Financials Fund bought 19 lakh shares (0.5%), New World Fund bought 19.54 lakh shares (0.52%), and Aditya Birla Sun Life Mutual Fund bought 12.9 lakh shares (0.35%) at Rs 1,545 apiece, among others.
Bulk Deals
Aptus Value Housing Finance: Madison India Opportunities sold 80 lakh (1.6%) shares at Rs 246.45 apiece.
Sula Vineyards: Quant Mutual Fund bought 5 lakh (0.6%) for Rs 470.99 apiece and Karishma Singh sold 5 lakh (0.6%) for Rs 471.03 apiece.
Thyrocare Technologies: Societe Generale bought 2.96 lakh shares (0.55%) at Rs 527.93 apiece.
Insider Trades
Mukand: Promoter Baroda Industries bought 22,565 shares between June 19 and 20.
SOM Distilleries and Breweries: Promoter Deepak Arora bought 20,000 shares on June 21.
Satia Industries: Promoter Ajay Kumar Satia bought 2.85 lakh shares between June 19 and 20.
Pidilite Industries: Promoter Neerav Parekh sold 32,524 shares between June 19 and 20.
Star Cement: Promoters Prahlad Rai Chamaria and Ratna Chamaria sold 10,000 shares each on June 19.
Pledge Share Details
Jindal Steel and Power: Promoter Siddeshwari Tradex revoked a pledge of 10.79 lakh shares on June 17.
Stocks To Watch: TCS, Airtel, Sansera, NTPC, Kalpataru, Glenmark In Focus
Tata Consultancy Services: Tata Consultancy Services and the U.K.’s Nest Pension expand their strategic partnership to provide an enhanced member experience. That, in turn, will provide better retirement outcomes for Nest’s 12 million members.
Bharti Airtel: Bharti Airtel picks up a 12.07% stake in Egan Solar Power to seek a captive power plant for Rs 1.3 crore. The telecom giant aims to own and operate the captive power plant to comply with electricity laws.
Sansera Engineering: Client Ebene and CVCIGP II Employee Ebene are to sell 47.8 lakh shares (9%) and 26.8 lakh shares (5.1%), respectively. Shares are offered in the price range of Rs 799.85 to Rs 841.95 apiece, representing a discount of up to 5% to Wednesday’s closing price.
NTPC: The company is to consider raising Rs 12,000 via bonds on June 24.
Kalpataru Projects International: The board approved raising Rs 300 crore via the issuance of unsecured, rated, listed, redeemable, and non-convertible debentures.
Glenmark: The U.S. FDA has issued a warning letter to the Monroe facility in North Carolina. The company did a voluntary recall of all its products from this site in August 2021, and since then it has not been commercialising any products from this site. Hence, the warning letter will have no impact on the existing revenues, it said.
Krishna Institute Of Medical Science: SBI Mutual Funds, under its various schemes, has acquired 52,08,276 shares of the company, which is 6.5% of the paid-up share capital of the company.
SGX Nifty Signals Lower Open For Benchmarks
Asian markets were rangebound following another decline on Wall Street as Federal Reserve Chair Jerome Powell stuck to the script of higher interest rates to tame inflation.
Gains for Japanese and South Korean stocks dragged a gauge of the region’s equities higher, offsetting a drop for Australian shares. Markets in Hong Kong, mainland China, and Taiwan are closed for holidays, reducing activity in the region.
Futures contracts for the S&P 500 and Nasdaq 100 were little changed after the two benchmarks fell for a third consecutive session Wednesday as investors rethink the bullish spirits unleashed by last week’s Fed rate pause.
Powell renewed his warning that higher rates were needed, telling Congress during his semi-annual report that two more rate hikes this year were "a pretty good guess."
Meanwhile, Brent crude was trading above $77 a barrel, and West Texas Intermediate slipped below $73 mark. The yield on the 10-year U.S. bond was trading at 3.72%, whereas Bitcoin rose to the $30,000 level.
At 8 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was down 0.25% at 18,861.
Back home, the S&P BSE Sensex Index was up 196 points, or 0.31%, at 63,523.15, while the NSE Nifty 50 Index was 40 points, or 0.21%, higher at 18,856.85.
Overseas investors snapped a two-day selling streak to become net buyers of Indian equities on Wednesday. Foreign portfolio investors mopped up stocks worth Rs 4,013.1 crore, according to data from the National Stock Exchange. That's the biggest single-day buying since March 2, when FPIs net bought equities worth Rs 12,770.8 crore. Domestic institutional investors remained net buyers for the second straight day and bought equities worth Rs 550.4 crore, the NSE data showed.
