Stock Market Today: Sensex, Nifty Fall For The Second Day; FPIs Turn Net Sellers

-Yield on the 10-year bond rose 6 bps this week to close at 7.04% on Friday.

-It rose from 7.02% on Thursday.

Source: Bloomberg

Overseas investors in Indian equities turned net sellers after three days of consecutive buying on Friday.

Foreign portfolio investors sold stocks worth Rs 308.97 crore, according to data from the National Stock Exchange.

Domestic institutional investors were net buyers and mopped by stocks worth Rs 1,245.51 crore, the NSE data showed.

• The local currency strengthens about 10 paise to close at 82.47 against the U.S dollar on Friday.

• The local currency closed at 82.57 on Thursday.

Source: Bloomberg

India's benchmark stock indices declined for the second day after swinging between gains and losses through Friday. While PSU banks, fast moving consumer goods and I.T. sectors declined, realty and private banking shares were buoyant. Infosys Ltd., HUL Ltd., and SBI dragged, Axis Bank Ltd., L&T Ltd. led the positive change on the indices. Also, the headline indices advanced for the third week on Friday.

European stocks and U.S. futures slid following a strong rally in Asia. Chemical shares led losses in Europe after a downbeat earnings statement from Croda International Plc. The Turkish lira weakened President Recep Tayyip Erdogan nominated a new central bank governor.

In Asia, stocks headed for a second weekly gain, with Japan’s Nikkei 225 set to complete a nine-week advance that would be its longest winning streak in more than five years. The index jumped nearly 2% on Friday and South Korean equities climbed to levels last seen a year ago.

The S&P BSE Sensex Index closed down 223 points or 0.35% at 62,625.63 while the NSE Nifty 50 Index was 71 points or 0.38% lower at 18,563.40.

Infosys Ltd., Hindustan Unilever Ltd., State Bank of India, Reliance Industries Ltd., and ITC Ltd. were the negatively adding to the change in the Nifty 50 Index.

Axis Bank Ltd., L&T Ltd., HDFC Bank Ltd., ICICI Bank Ltd., and IndusInd Bank Ltd. were positively adding to the change.

The broader market indices outperformed its larger peers; the S&P BSE MidCap Index was up 0.03%, whereas S&P BSE SmallCap Index was higher by 0.02%.

Fifteen out of the 19 sectors compiled by BSE declined, while four sectors advanced with S&P BSE Capital Goods gaining the most.

The market breadth was split between the buyers and the sellers. About 1,744 stocks rose 1,788 declined, and 116 remained unchanged on the BSE.

The headline indices logged slim gains this week. Sensex logged weekly gains of 0.13%, whereas Nifty advanced 0.16%.

Last week, the indices ended marginally higher. The S&P BSE Sensex Index was up 0.07%, and the NSE Nifty 50 Index was higher by 0.19%.

Sectorally, Nifty Auto Index, Nifty Realty Index and Nifty Metal Index led the pack this week, while Nifty IT Index and Nifty PSU Bank Index were the worst performers of the week.

• Shares with face value of Rs 10 each will be splt into two shares of Rs 5 each, raising the authorised share capital to Rs 30 crore from Rs 15 crore.

• Shareholders will receive one share for each share held with 1:1 bonus, increaing company's issued capital to Rs 27.04 crore.

Source: Exchange filing

• Hazoor Multi Projects has received approval to start the construction of Samruddhi Expressway in Nasik for Rs 119.18 crore.

Source: Exchange filing

• Bank will issue Basel III-compliant additional Tier 1 and Tier 2 bonds, up to an amount of Rs 50,000 crore.

• The funds will be raised through private placement on the government's approval.

Source: Exchange filing

Nifty 500 stocks at 52-week low, intraday.

• Equity mutual funds see net inflow of Rs 3,240.20 crore in May compared with inflow of Rs 6,480.29 crore in April.

• Multi-cap funds: Inflow of Rs 104.55 crore vs inflow of Rs 206.27 crore in April.

• Large-cap funds: Outflow of Rs 1,362.28 crore vs inflow of Rs 52.63 crore in April.

• Mid-cap funds: Inflow of Rs 1,195.65 crore vs inflow of Rs 1,790.98 crore in April.

• Small-cap funds: Inflow of Rs 3,282.50 crore vs inflow of Rs 2,182.44 crore in April.

• Industry posts total net inflow of Rs 57,420.56 crore in May versus an inflow of Rs 1.21 lakh crore in April.

• Equity mutual funds see inflow of Rs 3,240.30 crore in May versus inflow of Rs 6,480.29 crore in April.

• Debt mutual funds see inflow of Rs 45,959.03 crore in May versus inflow of Rs 1.07 lakh crore in April.

• Hybrid mutual funds see inflow of Rs 6,092.85 crore in May versus inflow of Rs 3,316.99 crore in April.

Source: AMFI

Shares of Five-Star Business Finance Limited rose on Friday after the credit rating agency CareEdge Ratings increased its rating for the long-term bank facilities.

The rating agency increased its rating for long term bank facilities of the company to AA-; Stable from the earlier rating of A+ Stable, as per a June 8 press release.

Ratings for short term bank facilities, as well as commercial paper were reaffirmed, with each at A1+.

Key Rating Drivers:

• Improvement in market capitalization levels, which stood at Rs 4,285 at the end of the previous fiscal year.

• Gross loan portfolio growth of 36.47% growth at Rs 6,915 crore, against the previous fiscal year end figure of Rs 5,067 crore.
  

Shares of Five-Star Business Finance rose 2.92% to Rs 600 apiece, compared to a flat Nifty 50 as of 11:52 a.m., while the stock rose over 6.52% intraday, the most in over two months since March 31.

The average traded volume so far in the day stood at 45.1 times its monthly average.

Of the three analysts tracking the company, all three maintained a 'buy' rating, according to Bloomberg data.

The average 12-month consensus target price implies a potential upside of 16.9%.

India's benchmark stock indices swung between gains and losses with a little change on Friday through midday. While PSU banks and I.T. sectord declined, realty and private banking shares were buoyant. While Infosys Ltd., HUL Ltd., and SBI dragged, Axis Bank Ltd., ICICI Bank Ltd. led the positive change on the indices.

Asian markets headed for a second weekly gain after the S&P 500 entered a bull market, and Chinese price data increased pressure for a rate cut from the central bank.

The biggest advance was seen in Japanese stocks, which snapped a two-day decline, while those in Australia rose for the first time in four days. South Korean equities climbed to levels last seen a year ago.

A small gain for Hong Kong’s Hang Seng Index pushed the benchmark toward the highest close in more than two weeks while mainland China stocks traded in tight ranges. U.S. stock futures inched lower in Asia while contracts for Europe rose slightly.

As of 12:08 p.m., the S&P BSE Sensex Index was down 4 points or 0.01% at 62,844.44 while the NSE Nifty 50 Index was 2 points or 0.01% lower at 18,632.40.

Infosys Ltd., Hindustan Unilever Ltd., State Bank of India, Kotak Mahindra Bank Ltd., and TCS Ltd. were the negatively adding to the change in the Nifty 50 Index.

Axis Bank Ltd., ICICI Bank Ltd., HDFC Bank Ltd., L&T Ltd., and HDFC Ltd. were positively adding to the change.

The broader market indices outperformed its larger peers; the S&P BSE MidCap Index was up 0.24%, whereas S&P BSE SmallCap Index was higher by 0.26%.

Thirteen out of the 20 sectors compiled by BSE advanced, while seven sectors declined with S&P BSE Teck falling the most.

The market breadth was skewed in the favour of the sellers. About 1,832 stocks rose 1,531 declined, and 139 remained unchanged on the BSE.

Shares of IRB Infrastructure Developers rose after the company said its toll revenue jumped 20% year-on year.

The toll collection for May 2023 rose to Rs. 411 crore from Rs. 343 crore in May 2022, according to exchange filing on Thursday.

The stock was trading 2.04% higher at Rs 28.55 apiece, compared to a 0.03% decline in the Nifty 50 as of 11:24 a.m. on Friday. The scrip gained as much as 4.11% intraday, the most since May 17, 2023.

Out of the 9 analysts tracking the company, six maintain a 'buy' rating and three recommend a 'hold, according to Bloomberg data. The average 12-month consensus price target implies a downside of 0.2%.

Shares of Greenlam Industries hit a record high on Friday at Rs 446.90 apiece, while observing an 11.16% rise, after it announced the opening of a new plant in Tindivanam, Tamil Nadu.

The greenfield plant at Tindivanam district will be a manufacturing facility for the plywood and allied products, operated by its subsidiary HG Industries Ltd., with an estimated investment of Rs 125 crore.

The facility has an installed capacity of 18.9 million square meter per annum and has a potential to generate revenue of Rs 400 crore per annum on full capacity utilization. The total capex incurred for the project stands at approximately Rs 130 crore till commencement of the commercial production.

Shares of Greenlam Indutries rose 6.66% to Rs 430 apiece as of 11:10 a.m. on Friday, compared to a 0.17% decline in the benchmark Nifty 50. The stock rose as much as 11.16% intraday to hit a record high at Rs 446.90 apiece. Total traded volume so far in the day stood at 16.9 times its 30-day average. The relative strength index was at 81, suggesting overbuying of the stock.

Out of the 10 analysts tracking the company, eight maintain a 'buy' rating and two recommend a 'hold', according to Bloomberg data. The average 12-month consensus price target implies a downside of 4.3%

Shares of Bhansali Engineering Polymer Ltd. fell over 12% after it announced June 9, 2023 as its e- date for the upcoming dividend. The final dividend price was set at Rs 1 per share and the special dividend price was set at Rs 14 per share.

Shares of Bhansali Engineering Polymer Ltd. lost 12.66% to Rs 138.65 apiece compared to a 0.07% loss in the Nifty 50 as of 10:46 a.m.

The stock reached an intraday low of 12.82%, the lowest it’s been in the last two weeks. The total traded quantity so far in the day stood at 1.5 times the 30-day average volume.

Shares of Macrotech Developers Limited rose on Friday after ICRA upgraded its rating on the company from 'stable' to 'positive' according to a June 7 exchange filing.

The credit rating agency increased its rating on the back of strong operating performance in FY23 led by healthy growth in collections and cash flows from operations, according to a June 6 ICRA filing.

Shares of Macrotech Developers rose 4.28% to Rs 605 apiece, compared to a slight fall in Nifty 50 by 0.05% as of 10:53 a.m.

The scrip rose as much as 5.32% intraday, the most in a week since May 31, while the relative strength index was at 76, suggesting the stock may be overbought.

Of the 16 analysts tracking the company, 13 maintain a 'buy' rating, and three suggest a 'hold', according to Bloomberg data.

The average 12-month consensus price target implies a potential downside of 5.2%.

Shares of Indian Energy Exchange Ltd. fell to a two-year low after Ministry of Power asked CERC to initiate the process of market coupling for power exchanges. It also asked Central Electricity Regulatory Commission to take suitable action for consultation and finalisation of a construct with multiple exchanges.

The coupling of exchanges is expected to bring down the market share of Indian Energy Exchange Ltd. which is the market leader with 99.9% market share.

Shares of Indian Energy Exchange Ltd. fell 8.98% to Rs 124.2 apiece in trade on Friday compared to 0.12% advance in the benchmark, NSE Nifty 50 Index. It dropped to a two-year low, the most since May 28, 2021 on Friday.

The scrip declined as much as 14.99% intraday, the most in over 38 months since March 13, 2020. Total traded volume stood at 41 times its 30-day average. The relative strength index was at 16, implied that the stock maybe oversold.

Out of the 17 analysts tracking the company, eight maintain a 'buy' rating, three recommend a 'hold' and six suggest to 'sell' the stock, as per the Bloomberg data.

As per Bloomberg, Antique Broking downgraded the stock to a 'sell' rating as it fears that the past era of high volume growth for IEX may be “difficult to mimic”. It sees power spot prices remaining higher than bilaterally negotiated prices between power distributors. It set a price target of Rs 105 apiece.

The average calculated from the 12-month price target given by analysts implies a potential upside of 20%.

Source: Bloomberg, Exchange filing

Shares of Aether Industries Ltd. hit a record high on Friday after it signed a licensing agreement with Saudi Aramco Technologies Co. for commercialising converge polyols technology. The manufacturing process of polyols was jointly developed and validated at a pre-commer.

The scrip has risen nearly 11.3% in the last three sessions. Shares surged the most in over eight months, on Thursday as well after it signed a manufacturing partnership deal with an American oil field services company.

Shares of Aether Industries rose 4.64% to Rs 1,028 apiece as of 10:27 a.m., compared to a little change in the NSE Nifty 50. The stock surged nearly Rs 1,055 apiece intraday, an all-time high. It gained as much as 7.39% intraday.

The average traded volume so far in the day stood at 16.4 times its monthly average. The relative strength index was at 76, implying that the stocks may be overbought.

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 9.3%.

Source: Bloomberg, Exchange filing

• Zydus Lifesciences has started the phase 4 trial for Saroglitazar Magnesium effects on comorbid patients.

• Saroglitazar Magnesium is used to treat non-alcoholic fatty liver disease.

Source: Exchange filing

Shares of Kotak Mahindra Bank Ltd. fell in trade after Canada Pension sought Rs 6,225 crore for a stake sale in the bank.

The Canada Pension Plan Investment Board offered 3.3 crore shares, representing a 1.7% stake, in Kotak Mahindra Bank in two bunches of block trades. The shares are offered in the Rs 1,792.18 to Rs 1,886.50 range each. The price range represents a discount of up to 5% compared to Thursday's close.

Shares of Kotak Mahindra Bank Ltd. fell 1.14% to Rs 1,865 apiece, as of 09:42 a.m., in trade on Friday compared to 0.08% decline in the benchmark, NSE Nifty 50 Index.

The scrip declined as much as 1.30% intraday. Total traded volume stood at 59.8 times its 30-day average. The relative strength index was at 41.

Out of the 42 analysts tracking the company, 24 maintain a 'buy' rating, 15 recommend a 'hold' and three 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 14.6%.

Source: Bloomberg, Exchange filing

• Greenlam Industries expects annual revenue of Rs 400 crore from the facility.

• The company has spent Rs 130 crore till commencement of the commercial production.

Source: Exchange filing

The broader market indices declined; the S&P BSE MidCap Index was up 0.16%, whereas S&P BSE SmallCap Index was higher by 0.35%.

Fifteen out of the 20 sectors compiled by BSE advanced, while five sectors declined with S&P BSE Metals falling the most.

The market breadth was skewed in the favour of the sellers. About 1,718 stocks rose 734 declined, and 92 remained unchanged on the BSE.

Source: BSE

Axis Bank Ltd., Titan Co., Tata Motors Ltd., Reliance Industries Ltd., and ICICI Bank Ltd., were the positively adding to the change in the Nifty 50 Index.

Whereas, Infosys Ltd., ITC Ltd., Kotak Mahindra Bank Ltd., Hindustan Unilever Ltd., and Asian Paints Ltd. were negatively adding to the change.

India's benchmark stock indices were mixed in pre-open trade on Friday and opened marginally higher after snapping four days of gain on Thursday.

Asian markets headed for its second weekly gain, boosted by hopes for economic stimulus in China and the S&P 500 entering a bull.

Mainland China and Hong Kong shares traded in tight ranges as a further drop in Chinese producer prices and tepid consumer prices bolstered speculation that the government will need offer more support. Japanese stocks snapped a two-day decline, while Australian shares rebounded after falling in the prior three sessions. South Korean equities are at their highest level since June last year.

Contracts on U.S. indexes inched lower during early trade in Asia. A jump in jobless claims to the highest level since October 2021 delivered a boost to the tech sector. The S&P 500 added 0.6% and the tech-heavy Nasdaq 100 rose 1.3% as chipmakers including Nvidia Corp. and Advanced Micro Devices Inc. were among the biggest gainers.

Oil dropped on regional media reports that ignited speculation that the U.S. and Iran are nearing a deal that would pave the way for more Iranian crude exports. US officials denied the reports. Back home, the policy rates were left unchanged by the RBI at 6.5%.

At pre-open, the S&P BSE Sensex Index was down 37 points or 0.06% at 62,811.20 while the NSE Nifty 50 Index was 21 points or 0.11% higher at 18,655.90.

At pre-open, the S&P BSE Sensex Index was down 37 points or 0.06% at 62,811.20 while the NSE Nifty 50 Index was 21 points or 0.11% higher at 18,655.90.

Source: Bloomberg

• The yield on the 10-year bond opened flat at 7.01% on Friday.

• It closed at 7.02% on Thursday

Source: Bloomberg

• The local currency appreciated 8 paise to open at 82.49 against the U.S dollar on Friday.

• The local currency closed at 82.57 on Thursday.

Source: Bloomberg

• Dr. Reddy's Laboratories has been given U.S. FDA approval for cyclophosphamide

• The drug is used used as chemotherapy and to suppress the immune system in certain cases

Source: U.S. FDA

• U.S. Dollar Index at 103.4

• U.S. 10-year bond yield at 3.73%

• Brent crude down 0.63% at $75.48 per barrel

• Nymex crude down 0.65% at $70.83 per barrel

• SGX Nifty up 0.18% at 18,754 as of 8:14 a.m.

• Bitcoin down 0.56% at $26,497.56

• LG Balakrishnan & Bros.: Promoter Nithin Karivardhan sold 8,000 shares on June 7.

• Som Distilleries & Breweries: Promoter Deepak Arora bought 10,000 shares on June 8.

• Advanced Enzyme Technologies: Promoter groups Advanced Vital Enzymes sold 3,500 shares on June 5, and Atharva Green Ecotech sold 1.91 lakh shares between June 5 and June 7.

• Star Cement: Promoter groups Rahul Chamaria and Sachin Chamaria sold 1.12 lakh shares each, and Laxmi Chamaria sold 2.09 lakh shares between June 5 and June 7.

• Rajnish Wellness: Promoter Rajnishkumar Singh bought 8.33 lakh shares on June 8.

• Gravita India: Promoter and Director Rajat Agrawal sold 13 lakh shares on June 6.

• Emami: Promoter Group Diwarkar Finvest created a pledge of 18.9 lakh shares on June 5.  

• Jindal Steel & Power: Promoter Group Siddeshwari Tradex revoked a pledge of 16 lakh shares on June 6. 

• BCL Industries: Waybroad Trading bought 1.26 lakh shares (0.52%) at Rs 480 apiece, and Rollon Investments sold 2.91 lakh shares (1.2%) at Rs 484.75 apiece.

• Goodluck India: Nandanvan Investments sold 1.56 lakh shares (0.57%) at 406.97 apiece.

• Steel Cast: Rushil Industries bought 1.96 lakh shares (0.97%) at Rs 495 apiece.

• Eki Energy Services: Next Orbit Ventures Fund sold 2.46 lakh shares (0.89%) at Rs 593.75 apiece.

• Ex-Date Annual General Meeting: Himadri Specialty Chemical, Solar Industries India, Bhansali Engineering Polymers, Elecon Engineering, Dynamatic Technologies, Voltas, and The Indian Hotels

• Ex-Date Special Dividend: Cigniti Technologies, Solar Industries India, Bhansali Engineering Polymers

• Ex-Date Interim Dividend: Caplin Point Laboratories, National Fertilisers, Elpro International, Maruti Interior Products, NRB Bearing

• Ex-Date Final Dividend: Asian Paints, Bhansali Engineering Polymers, Cigniti Technologies, Dynamatic Technologies, Elecon Engineering Company, Himadri Speciality Chemical, Indian Hotels, Solar Industries, Voltas, HDFC Asset Management

• Record-Date Interim Dividend: NRB Bearing, Caplin Point Laboratories, National Fertilisers, Elpro International, and Maruti Interior Products

• Record-Date Dividend: HDFC Asset Management, Asian Paints, Dynamatic Technologies

• Record-Date Special Dividend: Cigniti Technologies

• Record-Date Final Dividend: Asian Paints, Cigniti Technologies, and Dynamatic Technologies

• Move Out of the Short-Term ASM Framework: Cholamandalam Financial Holdings

• Tata Power, Tata Steel: Tata Power Renewable Energy, through subsidiary TP Vardhaman Surya, inked a pact with Tata Steel to set up 966 MW of hybrid renewable power. The project has a hybrid renewable capacity of 379 MW of solar and 587 MW of wind power. Tata Steel will invest 26% of its equity in the project and is expected to be commissioned by June 1, 2025.

• Kotak Mahindra Bank: Canada Pension sought Rs 6,225 crore for a stake sale in Kotak Mahindra Bank. The Canada Pension Plan Investment Board will offer 3.3 crore shares, representing a 1.7% stake, in Kotak Mahindra Bank in a block trade. The shares are offered in the Rs 1,792.18 to Rs 1,886.50 range each. The price range represents a discount of up to 5% compared to Thursday's close.

• GAIL: GAIL won the bidding for JBF Petrochemicals' corporate insolvency process and infused a total resolution plan of Rs 2,101 crore. GAIL now adds purified terephthalic acid to its existing petrochemical portfolio through this acquisition.

• Blue Dart: The company appointed Sudha Pai as chief financial officer with effect from Sept. 1. Pai is currently the chief financial officer at DHL Global Forwarding, India. Blue Dart also names VN Iyer as group CFO with effect from Sept. 1.

• Hindustan Aeronautics: The board meeting to consider the sub-division of equity shares will be held on June 27.

• Capacit'e Infraprojects: The company said it plans to raise Rs 96.3 crore through a preferential issue of equity shares. It will use the funds to support the company's long-term working capital requirements.

• CEAT: The company inked an agreement to further invest up to Rs 9 crore to acquire 10.89% of Tyresnmore. Upon completion of the agreement, Tyresnmore will become a subsidiary of the company with CEAT, holding a 56.9% stake on a fully diluted basis.

• IRB Infrastructure Developers: The company’s gross toll revenue gained 8.9% year-on-year to Rs 864.75 million from Rs 794.32 million a year ago.

• Aether Industries: The company signed a licencing agreement with Saudi Aramco Technologies Co. for commercialising Converge polyols technology. The manufacturing process of polyols was jointly developed and validated at a pre-commercial scale by Aramco and Aether.

• NHPC: The company's unit NHDC was allotted a pump hydro storage site in Madhya Pradesh with a storage capacity of 525 MW x 6 hours by the new and renewable energy department of the Madhya Pradesh government.

• Pitti Engineering: The company made an additional investment of Rs 5 lakh in its wholly owned subsidiary, Pitti Rail and Engineering Components, by subscribing to 50,000 fully paid-up equity shares of face value of Rs 10 each through a rights issue. This investment is made to enable Pitti Rail to meet its expenses for operations and general corporate purposes.

• Abans Holding: The company's subsidiary Abans Agri Warehousing & Logistics is executing a contract to sell its entire 100% stake in Shanghai Yilan Trading Co. to Forever Trading F.Z.C. for a composite consideration of CNY 354,595 (Rs 41.13 lakh).

Shares fluctuated in Hong Kong and edged higher in Shanghai as a further drop in Chinese producer prices and tepid consumer prices bolstered speculation that the government would need to offer more support. Japanese stocks snapped a two-day decline, while Australian shares rebounded after falling in the prior three sessions. South Korean equities are at their highest level since June last year.

Contracts on U.S. indexes inched lower during early trade in Asia. A jump in jobless claims to the highest level since October 2021 delivered a boost to the tech sector. The S&P 500 added 0.6% and the tech-heavy Nasdaq 100 rose 1.3% as chipmakers including Nvidia Corp. and Advanced Micro Devices Inc. were among the biggest gainers.

Oil dropped on regional media reports that ignited speculation that the U.S. and Iran are nearing a deal that would pave the way for more Iranian crude exports. US officials denied the reports. Back home, the policy rates were left unchanged by the RBI at 6.5%.

The yield on the 10-year Treasury note in the U.S. was trading at 3.73%. Crude oil price was trading around the $75 mark, while Bitcoin was trading below the $27,000 level.

At 8:14 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was up 0.18% at 18,754.

Domestic benchmark stock indices slid after inching closer to record highs on Thursday as all sectors, except metals, declined after the RBI kept policy rates unchanged. The local currency depreciated 2 paise to close at 82.57 after opening at 82.58 against the greenback on Thursday.

Foreign investors remained net buyers for the third consecutive day in a row on Thursday and mopped up stocks worth Rs 212.4 crore, while domestic institutional investors turned net buyers and offloaded equities worth Rs 405 crore, according to the NSE data.