Stock Market Today: Sensex, Nifty Snap Four-Day Run As Kotak, Axis Bank, Sun Pharma Drag; FPIs Stay Net Buyers
Sensex closed down 294 points or 0.47% at 62,848,64 while Nifty was 92 points or 0.49% lower at 18,634.55.
KEY HIGHLIGHTS
Yield On The 10-Year Bond Rises
The yield on the 10-year closed 4 basis points higher at 7.02% on Thursday.
It closed at 6.98% on Wednesday.
Source: Bloomberg
FPIs Stay Net Buyers
Overseas investors in Indian equities remained net buyers for the third day in a row on Thursday.
Foreign portfolio investors mopped up stocks worth Rs 212.4 crore, according to data from the National Stock Exchange. This is the least amount of net buying in the month so far.
Domestic institutional investors turned net sellers and offloaded equities worth Rs 405.01 crore, the NSE data showed.
Rupee Weakens Against The U.S. Dollar
The local currency depreciated 2 paise to close at 82.57 against the U.S dollar on Thursday.
The local currency closed at 82.55 on Wednesday.
Source: Bloomberg
Broader Markets Close Lower
The broader market indices declined; the S&P BSE MidCap Index was down 0.87%, whereas S&P BSE SmallCap Index was lower by 0.47%.
Fourteen out of the 20 sectors compiled by BSE declined, while five sectors advanced with S&P BSE Power gaining the most.
The market breadth was skewed in the favour of the sellers. About 1,494 stocks rose 2,055 declined, and 119 remained unchanged on the BSE.
Top Movers On The Nifty 50 Index
Reliance Industries Ltd., L&T Ltd., HDFC Bank Ltd., HDFC Ltd., and NTPC Ltd. were positively adding to the change in the Nifty 50 Index.
Whereas, Kotak Mahindra Bank Ltd., Axis Bank Ltd., Sun Pharmaceutical Industries Ltd., TCS Ltd., and Hindustan Unilever Ltd. were negatively contributing to the change.
Sensex, Nifty Snap Four Day Run: Closing Bell
India's benchmark stock indices slid after inching closer to record highs on Thursday as all sectors declined with the exception of metals after the Reserve Bank of India kept policy rates unchanged.
The headline indices breached their closing high from Dec. 1, 2022 intraday on Thursday morning, ahead of the policy announcement.
European technology shares fell the most in two weeks on worries that central banks will keep driving interest rates higher. ASML Holding NV lost 1.8%, the biggest drag on the Stoxx 600 on Thursday. In the U.S. pre-market, GameStop Corp. plunged 18% after firing its chief executive and reporting sales that fell short of estimates.
Asian shares ticked lower, with the most notable weakness in Hong Kong-listed technology stocks. The yen strengthened after data showing Japan’s economy grew faster than expected in the first quarter.
The RBI's monetary policy committee voted unanimously to keep the policy repo rate unchanged at 6.5%. The MPC decided by a majority of 5:1 to remain focused on withdrawal of accommodation. India’s inflation is likely to remain above 4% in FY24, said RBI Governor Shaktikanta Das. However, the yield on the 10-year benchmark bond rose slightly even after the central bank kept rates unchanged.
The S&P BSE Sensex Index closed down 294 points or 0.47% at 62,848,64 while the NSE Nifty 50 Index was 92 points or 0.49% lower at 18,634.55.
L&T Finance Recommends Rs 2 Per Share Final Dividend
L&T Finance's board of directors has recommended a final dividend of Rs 2 per share for a face value of Rs 10 per share
Source: Exchange filing
Atishay Wins Rs 47 Crore Project For Data Computerisation
Atishay has secured a tender worth Rs 47 crore for a PACS digitisation project in Madhya Pradesh
Project issued by National Bank for Agriculture and Rural Development, involves the digitisation of financial documents
Source: Exchange filing
CCL Products Acquires Several Coffee Brands From Lofbergs Group For £550,000
Company acquired six brands from Lofbergs Group for £550,000 or approximately Rs 5.66 crore.
Source: Exchange filing
Top Drags On The Nifty 50 Index
Top stocks dragging the change on the Nifty 50 Index included, Kotak Mahindra Bank Ltd., TCS Ltd., Hindustan Unilever Ltd., Axis Bank Ltd., Sun Pharmaceutical Industries Ltd., M&M Ltd., and Grasim Industries Ltd.,
Zydus Lifesciences Gets USFDA Nod For Acid Reflux And Ulcer Drug
Zydus has recieved USFDA for oral suspension of esomeprazole magnesium, used to treat acid reflux and ulcers.
Source: Exchange filing
Nifty Metal Stocks Advance
Stocks In Focus: Tata Motors, Jindal Poly, Mazagon Shipbuilders, Titagarh Wagons
Dhananjay Sinha On Expectations From MPC Meet, Markets & More: Talking Point
Stocks At 52-Week High
ONDC Partners With Delhivery, Mystore For Delivery To Rural Sellers
ONDC network partners with Delhivery and Mystore to provide express parcel shipping for rural entrepreneurs nationwide
Source: Exchange filing
Paytm Shares Jump The Most In Over 17 Weeks
Shares of One 97 Communications Ltd. rose the most in over 17 weeks on Thursday.
The stock gained as much as 8.11% intraday, the most since Feb 8, 2023. Total traded volume stood at 7.8 times its 30-day average. The relative strength index stood at 73, suggesting stock may be overbought.
Out of the 13 analysts tracking the company, 11 maintain a 'buy' rating and two recommend a 'hold'. The average 12-month consensus price target implies and upside of 21.2%.
Source: Bloomberg
Sensex, Nifty Trade Lower Amid Volatility As RBI Leaves Policy Rates Unchanged: Midday Market Update
Indian equity benchmarks slid after inching close to its record high through midday on Thursday. The 10-year bond yields, on the other hand, rose three basis points to 7.01% after the RBI left the policy rates unchanged. While, metals and non-banking financial companies bucked the trend, all the other sectors declined in trade.
Equities slid while government bonds yields climbed in much of Asia and treasuries held their sharp move from the previous session as investors reassessed the risks from inflation.
The Reserve Bank of India's monetary policy committee voted unanimously to keep policy repo rate unchanged at 6.5%. The MPC decided by majority of 5:1 to remain focused on withdrawal of accommodation. India’s inflation is likely to remain above 4% in FY24, said RBI Governor, Shaktikanta Das.
Yields rose slightly in India, even after the central bank kept rates unchanged. The governor mentioned the hikes in Australia and Canada — a possible hint at future increases amid the uncertain inflation outlook. Yields also advanced in Indonesia, the Philippines and Malaysia.
The moves in Japan, meanwhile, were heavily influenced by GDP data that was much stronger than estimated. Benchmarks in Australia, South Korea and Japan declined. European and U.S. futures edged lower after a decline on Wall Street on Wednesday.
As of 12:34 p.m., the S&P BSE Sensex Index was down 70 points or 0.11% at 63,072.69 while the NSE Nifty 50 Index was 34 points or 0.18% lower at 18,692.05.
HDFC Bank Ltd., ICICI Bank Ltd., HDFC Ltd., Larsen and Toubro Ltd., and Reliance Industries Ltd., were positively adding to the change in the Nifty 50 Index.
Whereas, Kotak Mahindra Bank Ltd., TCS Ltd., Axis Bank Ltd., Hindustan Unilever Ltd., and M&M Ltd. were negatively contributing to the change.
The broader market indices underperformed the larger peers; the S&P BSE MidCap Index was down 0.56%, whereas S&P BSE SmallCap Index was lower by 0.31%.
Thirteen out of the 20 sectors compiled by BSE declined, while seven sectors advanced with S&P BSE Utilities gaining the most.
The market breadth was skewed in the favour of the buyers. About 1,447 stocks rose 1,985 declined, and 125 remained unchanged on the BSE.
Shaktikanta Das Says About 85% Rs 2,000 Notes Deposited
Around 1.8 lakh crore of Rs 2,000 notes back in the system. Roughly 50% of the notes back after the RBI’s announcement.
About 85% of the Rs 2,000 notes back in the system are in the form of deposits , says the RBI Governor.
Source: RBI Press Conference
Tata Teleservices Jumps The Most In Ten Months
Shares of Tata Teleservices gained the most in ten months. It was trading at 13.67% higher at Rs 77.64 apiece, compared to a 0.02% rise in the Nifty 50 as of 11:45 a.m. on Thursday.
The stock gained as much as 18.36% intraday, the most since Sep. 1, 2022. Total traded volume stood at 15.23 times its 30-day average. The relative strength index at 81, suggests that the stock maybe overbought.
Source: Bloomberg, Exchange filing
NTPC Jumps The Most In Seven Months After It Begins Gandhar Solar Plant Operations
Shares of NTPC rose the most in seven months on Thursday and led positive change on the indices in early trade. The Nifty Metal gauge, which NTPC is a part of, was 0.38% up at 11:45 a.m.
The company on Tuesday, June 6 said it will start commercial operations of the second part capacity of 10 MW of 20 MW solar photovoltaic project in Gandhar, Gujarat on Wednesday, June 7, according to an exchange filing. The first part capacity of 10 MW had started commercial operation on Aug. 23, 2022.
With this, the standalone installed and commercial capacity of NTPC will be 56,378 MW, while group installed and commercial capacity will be 72,364 MW.
Shares of NTPC Ltd. rose 2.59% to Rs 181.92 apiece, as of 11:45 a.m., in trade on Thursday compared to 0.01% decline in the benchmark, NSE Nifty 50 Index.
The stock rose as much as 3.95% intraday, the most in over seven months since Nov. 1, 2022. Total traded volume stood at 5.6 times its 30-day average. The relative strength index was at 66.9.
Out of the 24 analysts tracking the company, 23 maintain a 'buy' rating and one 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 upside of 12.7%.
Source: Bloomberg, Exchange filing
Maruti Suzuki Shares Little Changed As Nomura Maintains Neutral After Jimmy Launch
Shares of Maruti Suzuki India Ltd. were little changed in trade after Nomura maintained its neutral rating on the launch of its new five-door SUV, Jimny.
The scrip hit a life-high at Rs 9,800 apiece in trade on Wednesday, June 7. The brokerage viewed niche buyers for the car and estimated lower than original prices for the newly launched car.
Nomura On Maruti Suzuki
Maintains a 'neutral' rating with a target price of Rs 9,659 per share.
Expected lower prices in the range of Rs 10 to 11 lakh, as compared to the original price of Rs 12.7 lakh for the new five-door Jimny SUV launched on June 7.
Jimny can command some premium from the niche segment of buyers that it appeals to, says the brokerage. It estimates it to sell 3,000 to 4,000 units per month in India.
A rise in sales volume is limited at this price point and it should have high margins. It would have to compete with the five-door Thar after its launch in the March quarter of 2024.
Apart from Jimny, the company has launched the new Celerio, Baleno, Brezza, Alto, Grand Vitara and Fronx.
Expects the company to maintain its market share at approximately 42%. Market share gains in SUVs may be offset by weakness in the small-car segment, as per the brokerage.
New launches like the Honda Elevate, Hyundai Exter, Tata Curvv and five-door Thar will intensify competition in SUVs over the next year.
As per the brokerage, the stock currently trades at approximately 23 times FY25 core earnings per share. Nomura prefer M&M in the sector.
Shares of Maruti Suzuki India Ltd. fell 0.69% to Rs 9,640.9 apiece, as of 11:58 a.m., in trade on Thursday compared to 0.11% decline in the benchmark, NSE Nifty 50 Index.
The stock fell as much as 0.84% intraday. The total traded volume stood at 61.1 times its 30-day average. The relative strength index was at 74, implying that the stock maybe overbought.
Out of the 49 analysts tracking the company, 37 maintain a 'buy' rating, seven recommend a 'hold' and five suggest to sell the on the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 4.8% over the next 12 months.
Source: Bloomberg, Exchange filing
Mazagon Shares Pares Gain After Signing MoU With German Conglomerate
Shares of Mazagon Dock Shipbuilders Ltd. gained as they signed a memorandum of understanding with the German multinational conglomerate, ThyssenKrupp AG’s marine arm, to jointly build submarines for the Indian navy.
The MoU states that ThyssenKrupp Marine Systems would contribute to the engineering and design of the submarines as well as the consultancy support to this joint project and Mazagon Dock Shipbuilders Ltd. would take responsibility for constructing and delivering the respective submarines.
The stock was trading 0.37% higher at Rs. 1,033 apiece, compared to a 0.22% rise in the Nifty 50 as of 10:30 a.m. on Thursday.
The stock gained as much as 4.87% intraday. Total traded volume stood 5 times its 30-day average. The RSI is 83, suggesting that the stock may be overbought.
According to Bloomberg data, out of the four analysts tracking the company, two maintain a ‘buy’ rating, one maintains a ‘hold’ rating and one maintains a ‘sell’ rating. The average 12-month consensus price target implies a downside of 21.3%.
Titagarh Wagons Shares Rise As Board Considers Raising Funds
Shares of Titagarh Wagons Ltd. rose on Thursday, after the company’s board of directors announced that they will be meeting on June 10 to consider the company’s proposal to raise funds.
The funds will be raised either by the issue of equity shares or other securities including preferential issues, rights issue, qualified institutional placement or any other permissible mode or a combination of the mentioned avenues.
The stock was trading 1.34% higher at Rs 396.25 apiece, compared to a 0.14% rise in the Nifty 50 as of 10:04 a.m. on Thursday.
The stock gained as much as 4.86% intraday, the most since June 2nd, 2023. The total traded volume stood at 3.3 times its 30-day average. The relative strength index of the stock is 75, suggesting stock may be overbought.
Out of the four analysts tracking the company, all maintain a 'buy' rating on the stock, according to Bloomberg data. The average 12-month consensus price target implies an upside of 19.3%.
Gati Shares Gain On 8% Increase In Total Volume For The Month Of May
Shares of Gati Ltd. opened 8.47% higher after its total volume rose 8% as compared to April 2023 and up 1% as compared to May 2022.
May volumes continued to show an improving trend. Preparations for upcoming festive season have started with uptick seen in the last week of May, which should continue over the coming months. Moreover, West zone volumes witnessed a positive trend following the launch of new superhub at Bhiwandi, as per BSE filing.
Shares of Gati Ltd rose 8.09% to Rs 126.3 apiece, compared to 0.22% rise in the Nifty 50 as of 10:36 a.m. on Thursday.
Out of the two analysts tracking the company, All maintain a 'buy' rating on the stock, according to Bloomberg data. The average 12-month consensus price target implies an upside of 15.4%.
Aether Industries Shares Rise The Most In Eight Months After U.S. Deal
Shares of Aether Industries Ltd. surged the most in over eight months after it signed a manufacturing partnership deal with an American oil field services company.
“Aether Industries executes Letter of Intent with USA based leading global Oil Field Services Company for strategic supplier and contract manufacturing partnership,” the chemicals company said in an exchange filing.
Shares of Aether Industries rose 5.83% to Rs 983.5 apiece as of 10:18 a.m., compared to a 0.2% gain in the NSE Nifty 50. The stock surged nearly 105 intraday, the most in over eight months since Oct. 6, 2022.
The average traded volume so far in the day stood at 25.3 times its monthly average.
Of the six analysts tracking the company, five maintain a 'buy' rating, and one suggests a 'sell', according to Bloomberg data. The average 12-month consensus price target implies a potential upside of 13.9%.
Jindal Poly Shares Gain After It Acquires Dutch Packaging Films Business
Shares of Jindal Poly Films Ltd. gained after the company acquired a Netherlands-based packaging films business.
Jindal Poly Films acquired 100% shareholding in JPF Netherlands Investment B.V., a Netherlands-based entity in the packaging films business, according to a June 8 filing. The Dutch company operates through its three wholly-owned subsidiaries based out of France, Italy, and United Kingdom.
Shares of Jindal Poly surged 8.16% to Rs 726.9 apiece, compared to a 0.22% gain in the NSE Nifty 50 as of 10:33 a.m.
The average traded volume so far in the day stood at 12.6 times its monthly average.
Hatsun Agro To Consider Sale Of Windmill Division
Hatsun Agro is considering the sale of its windmill division by way of transfer of all the assets and liabilities through a slump sale
Source: Exchange filing
IndusInd Bank Appointed As Agency Bank By Madhya Pradesh Government
IndusInd Bank has been empaneled as the official angency bank by the Madhya Pradesh Government.
Bank to collect government's revenue and receipts such as GST and VAT online
Source: Exchange filing
Sensex, Nifty Inch Closer To Its Record High
Yield On The 10-Year Bond Rises
Yield on the 10-year bond rises three basis points as RBI MPC keeps policy rates unchanged.
It rose three bps to 7.01%, intraday on Thursday, the most in a week since May 30, 2023.
It closed at 6.98% on Wednesday.
Source: Bloomberg
RBI MPC Keeps Policy Rate Unchanged
RBI MPC votes unanimously to keep policy repo rate unchanged at 6.5%
MPC decided by majority of 5:1 to remain focused on withdrawal of accommodation
India’s inflation likely to remain above 4% in FY24
Source: RBI Governor's Speech
SpiceJet To Partner With FTAI Aviation For fleet Revitalization
SpiceJet to lease 20 engines from U.S.-based FTAI Aviation in an effort to revitalize its fleet
The first engines will be used for the re-activation of the fleet over the next 2-3 months
Source: Press release
Tata Motors Shares Gain The Most In A Week
Shares of Tata Motors Ltd. rose after it said it will focus on expanding product to improve profitability and lowering net automotive debt during the investor meeting.
The stocks was trading 0.96% higher at Rs 573.40 apiece, compared to a 0.08% rise in the Nifty 50 as of 09:44 a.m. on Thursday.
The stock gained as much as 1.51% intraday, the most since June 01, 2023. Total traded volume stood at 2.1 times its 30-day average. The RSI is 79, suggesting stock may be overboght.
Out of the 36 analysts tracking the company, 28 maintain a 'buy' rating and three recommend a 'hold', and five recommend 'sell' according to Bloomberg data. The average 12-month consensus price target implies and upside of 3.7%.
Tata Motors' India Investor Day 2023 highlighted its focus on customer-centric innovations in both businesses, profitable growth by leading from the front, and consistent delivery on financial targets, Motilal Oswal Financial said in a June 8 note
Broader Markets Outperform
The broader market indices outperformed the larger peers; the S&P BSE MidCap Index was up 0.16%, whereas S&P BSE SmallCap Index was higher by 0.29%.
Eight out of the 19 sectors compiled by BSE declined, while 11 sectors advanced with S&P BSE Utilities gaining the most.
The market breadth was skewed in the favour of the buyers. About 1,816 stocks rose 812 declined, and 115 remained unchanged on the BSE.
Source: BSE
Top Movers On The Nifty 50 Index
Reliance Industries Ltd., Larsen and Toubro Ltd., Power Grid Corp of India Ltd., HDFC Bank Ltd., and NTPC Ltd. were positively adding to the change in the Nifty 50 Index.
Whereas, Kotak Mahindra Bank Ltd., TCS Ltd., Axis Bank Ltd., Infosys Ltd., and HCL Technologies Ltd. were negatively contributing to the change.
Sensex, Nifty Open Marginally Higher: Opening Bell
Indian equity benchmarks opened marginally higher on Thursday after a closing at a six-month high on Wednesday, ahead of RBI monetary policy decision.
Australian shares were little changed while Japanese equities pared an early advance and South Korean equities fell. Overnight in the US, tech shares bore the brunt of jitters over higher rates, sending the S&P 500 down for a second day this week and the Nasdaq 100 to its worst day since April. Contracts on the U.S. benchmarks were largely flat in Asian trading.
Yields on government bonds opened higher in Australia and Japan, while treasuries held most of their sharp move from the previous session as investors reassessed the risks from inflation.
The unexpected decision of the Bank of Canada to restart its rate-hiking campaign — which followed a hike earlier in the week in Australia — has sparked a reassessment of prices in bond markets.
On home front, the country's Monetary Policy Committee is likely to continue its status quo on the RBI's key lending rate at its second meeting in the new fiscal, amid easing inflation and resilient growth. All 18 economists polled by Bloomberg expect the MPC to maintain the status quo on the RBI's repo rate on Thursday. The benchmark policy repo rate is currently at 6.50%.
At pre-open, the S&P BSE Sensex Index was down 3 points or 0% at 63,140.17 while the NSE Nifty 50 Index was 1 points or 0.01% lower at 18,725.35.
Sensex, Nifty Little Changed In Pre-Open Trade
At pre-open, the S&P BSE Sensex Index was down 3 points or 0% at 63,140.17 while the NSE Nifty 50 Index was 1 points or 0.01% lower at 18,725.35.
Source: Bloomberg
Yield On The 10-Year Bond Opens Flat
The yield on the 10-year bond opened flat at 6.99% on Thursday.
Source: Bloomberg
Zen Technologies Gets Rs 202 Crore Order From Defense Ministry
Anti-drone systems manufacturer Zen Technologies has bagged a defense ministry order worth Rs 202 crore
Source: Exchange filing
Inox Wind Bags 100 MW Wind Power Project
Inox Wind will set up a 100 MW turnkey wind power project for Abergenia Renewables in Kutch
Source: Exchange filing
Trade Talk: Will RBI Continue To Pause Repo Rate Hike?
Highest Put OI Is At 18600 Strike, Followed By 18700: Trade Setup
Global Cues
U.S. Dollar Index at 104
U.S. 10-year bond yield at 3.79%
Brent crude down 0.36% at $76.67 per barrel
Nymex crude down 0.39% at $72.25 per barrel
SGX Nifty up 0.10% at 18,830.5 as of 8:10 a.m.
Bitcoin up 0.31% at $26,446.26
Insider Trades
LG Balakrishnan & Bros: Promoter Nithin Karivardhan sold 4,000 shares on June 6.
Usha Martin: Promoter Peterhouse Investments sold 1.5 lakh shares on June 6.
Zydus Wellness: Promoter Zydus Family Trust bought 61,000 shares on June 6.
Praveg: Promoter Sunita Paras Patel sold 65,000 shares on June 6.
Gati: Promoter Group TCI Finance sold 25,000 shares on May 5.
IRB Infrastructure Developers: Promoter Group Sudha Mhaiskar bought 5 lakh shares on June 5.
Pricol: Promoter Group Pricol Engineering Industries bought 23,854 shares on June 5.
Pledge Share Details:
Zuari Industries: Promoter Chambal Fertilizers and Chemicals revoked a pledge of 10.8 lakh shares between June 2 and June 5 and created a pledge of 25,000 shares on June 5.
Aurobindo Pharma: Promoter Group RPR Sons Advisors created a pledge of 1 lakh shares and revoked a pledge of 82.7 lakh shares between June 2 and June 6.
Bulk Deals:
EKI Energy Services: Next Orbit Ventures Fund sold 2 lakh shares (0.73%) at Rs 492.35 apiece.
National Highways Infra Trust: Neo Markets Services bought 30 lakh shares (0.41%) at Rs 118.75. Trust Investment Advisors sold 30 lakh shares (0.41%) at Rs 118.75 per share.
Praveg: Sunita Paras Patel sold 2.16 lakh shares (1.03%) at Rs 500.27 apiece.
Trading Tweaks
Price Band Revised From 20% To 5%: NIIT
Price Band Revised From 20% To 10%: Suzlon Energy
Ex-Date Dividend: Bikaji Foods International
Ex-Date Annual General Meeting: Bikaji Foods International, UCO Bank
Ex-Date Demerger: NIIT
Record-Date Demerger: NIIT
Move Into Short-Term ASM Framework: NRB Bearings, Suzlon Energy
Move Out of Short-Term ASM Framework: Schneider Electric Infrastructure
Who's Meeting Whom?
Can Fin Homes: To meet investors and analysts on June 8.
Aptech: To meet investors and analysts on June 8.
Aurobindo Pharma: To meet investors and analysts on June 8.
Indo Count Industries: To meet investors and analysts on June 8.
UltraTech Cement: To meet investors and analysts on June 9.
Repco Home Finance: To meet investors and analysts on June 12 and June 13.
Delhivery: To meet investors and analysts on June 8.
Mallcom (India): To meet investors and analysts on June 12.
Adani Transmission: To meet investors and analysts on June 8.
Radico Khaitan: To meet investors and analysts on June 8.
Adani Green Energy: To meet investors and analysts on June 8 and June 21.
Uniparts India: To meet investors and analysts on June 12.
Manorama Industries: To meet investors and analysts on June 8.
Stocks To Watch: LIC, Lemon Tree, Gati, Sula Vineyards, Aether Industries, Titagarh Wagons In Focus
Bank Stocks: To be in focus ahead of the Monetary Policy Committee decision on the RBI's repo rate. MPC is likely to maintain its status quo on the RBI's key lending rate at the second meeting of the new fiscal amid easing inflation and resilient growth.
Life Insurance Corp: The company increased its stake in Tech Mahindra by 2% from 6.87% to 8.89%. The holding increased at an average cost of Rs 1,050.77.
Lemon Tree Hotels: The company signed a licence agreement for a 60-room property in Rajahmundry, Andhra Pradesh. The hotel is expected to be operational by the third quarter of fiscal 2025. The company’s unit, Carnation Hotels, will operate this hotel.
Stove Kraft: Chief Financial Officer, Balaji AS has resigned from the company citing personal reasons. The company is in the process of hiring a professional for the position of chief financial officer.
Sula Vineyards: The company said it has identified a new chief financial officer who will join the company in August. It has also added three new lakeside villas in Nasik, Maharashtra.
Gati: Total volume, including surface and air express, rose 8% sequentially in May. It rose 1% from the year before. The company said volumes in May continued to show an improving trend owing to an uptick in preparations for the upcoming festive season starting in the last week of May. This is expected to continue over the coming months.
Aether Industries: The company signed a Letter of Intent with a U.S.-based oil field services company for a strategic supplier and contract manufacturing partnership. The letter specifies four strategic products that will be supplied to the global energy and oil and gas locations of the U.S.-based company, including a significant supply within India.
Mazagon Dock Shipbuilders: The company signed a memorandum of understanding with Thyssenkrupp Marine Systems for building submarines in and for India. Thyssenkrupp Marine Systems will contribute to the engineering and design of the submarines and provide consulting support. Mazagon will take responsibility for constructing and delivering the respective submarines.
Titagarh Wagons: The board will meet on June 10 to consider, evaluate, and approve the proposal to raise funds by issuing equity in shares or other securities through preferential issue, qualified institutional placement, rights issue, or any other permissible mode.
Offerings: IKIO Lighting IPO Day-3
The demand for the initial public offering of LED lighting solution provider IKIO Lighting Ltd., was led by non-institutional investors on the second day of subscription. The IPO was subscribed 6.82 times on Wednesday. The portion of institutional investors was subscribed 1.37 times, non-institutional investors subscribed 15.99 times, while retail investors portion was subscribed 5.92 times. The IPO was fully subscribed on the first day. The three-day issue opened on June 6 and will continue till June 8.
SGX Nifty Signals Higher Open For Benchmarks
Australian shares were little changed while Japanese equities pared an early advance and South Korean equities fell. Overnight in the US, tech shares bore the brunt of jitters over higher rates, sending the S&P 500 down for a second day this week and the Nasdaq 100 to its worst day since April. Contracts on the U.S. benchmarks were largely flat in Asian trading.
Yields on government bonds opened higher in Australia and Japan, while treasuries held most of their sharp move from the previous session as investors reassessed the risks from inflation.
The unexpected decision of the Bank of Canada to restart its rate-hiking campaign — which followed a hike earlier in the week in Australia — has sparked a reassessment of prices in bond markets.
On home front, the country's Monetary Policy Committee is likely to continue its status quo on the RBI's key lending rate at its second meeting in the new fiscal, amid easing inflation and resilient growth. All 18 economists polled by Bloomberg expect the MPC to maintain the status quo on the RBI's repo rate on Thursday. The benchmark policy repo rate is currently at 6.50%.
The yield on the 10-year Treasury note in the U.S. was trading at 3.79%. Crude oil price was trading around the $76 mark, while Bitcoin was trading below the $27,000 level.
At 8:10 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India was up 0.10% at 18,830.5.
Domestic benchmarks advanced for the fourth consecutive session to close at a six-month high in trade on Wednesday as metals, realty and fast-moving consumer goods sectors advanced. The Indian rupee appreciated 6 paise to close at 82.55 against the US dollar compared with 82.61 on Tuesday.
Foreign investors remained net buyers for the second consecutive day in a row on Wednesday and mopped up stocks worth Rs 1,382.6 crore, while domestic institutional investors turned net buyers and offloaded equities worth Rs 392.3 crore, as per NSE data.