KEY HIGHLIGHTS
Closing Bell: Strong Gains
Indian equity markets shrugged off the initial sluggishness to end with gains and begin the new quarter on a positive note.
The S&P BSE Sensex ended 1.43% higher at 35,414 while the NSE Nifty 50 index managed to close above the 10,400 mark at 10,430, up 1.24%.
The Nifty Bank outperformed in today's session, ending 2.8% higher at 21,977. Gains were mainly led by Axis Bank which also ended as the top performer on the Nifty 50 index with gains of over 6%.
Among the sectoral laggards, the Nifty Pharma index was the underperformer, ending 1% lower while Nifty I.T. and Nifty Realty too ended with losses. Nifty Realty ended lower for the sixth straight day.
Broader markets were subdued in today's session. The Nifty Midcap Index ended with gains of 0.5% while the Smallcap index ended 0.84% higher.
Volatility remains on the lower side with the India Volatility Index ending 3.5% lower at 28.1.
Market breadth remained in favour of the advances. 1,003 stocks on the NSE ended with gains while 833 posted losses.
Aiding Gains On The Nifty
Special Liquidity Facility For NBFCs
- SBI Caps has set up a Special Purpose Vehicle (SPV) to manage the same
- The SPV will purchase short-term paper from eligible NBFCs and HFCs
- NBFCs, HFCs shall utilise the proceeds under this scheme only to extinguish existing liabilities
- SPV to buy investment grade Commercial Papers and NCDs with residual maturity of not more than three months
- Purchases will be made only till September 2020
Eligibility Criteria For NBFCs, HFCs:
- Investment grade NBFCs including MFIs and HFCs to be eligible
- Capital Adequacy Ratio of NBFCs, HFCs should not be below regulatory minimum
- Net NPA should not be more than 6% as on March 31, 2019
- Should have made a profit in at least one of the last two financial years
- Should not have been reported under SMA-1 or SMA-2 category by any bank during the last one year prior to August 2018.
Source: RBI
Buzzing Stock: Bank of Baroda
- Top performer on the Nifty PSU Bank Index
- Gains as much as 6.4% to Rs 51.7
- Biggest single-day gain in a month
- Snaps three-day losing streak
- Has gained in nine out of the last 13 trading sessions
- Up 13.5% in the last 13 trading sessions
- Adds Rs 1,363 crore to its market capitalisation today
- Board approved raising funds to the tune of Rs 2,000 crore on Tuesday
- Today's volumes are 1 time higher than its 30-day average
- 16 out of the 36 analysts tracking the stock have a buy recommendation; 8 sell calls
- Return potential of the stock as per Bloomberg data is 14.6%
Covid-19 Impact: BHEL
- Business outlook in the immediate term remains challenging.
- Continued slowness seen in power sector ordering.
- Received 60 relevant responses to the EoI floated on April 29, 2020, invigig OEMs to set up business base in India. Over 50% of these companies are of foreign origin.
- Poor availability of labour continues to impact full resumption of project execution activities.
- Disruption of supply chain will impact revenue and profitability in Q1FY21.
Shares are currently off the day's high, trading 1% higher at Rs 36.05.
Buzzing Stock: Indian Hume Pipe
- Top performer on the BSE Smallcap Index
- Gains as much as 19.1% to Rs 189.8
- Biggest single-day gain since October 2016
- Trades at the highest level in four months
- Snaps two-day losing streak
- Today's volumes are 1.6 times higher than its 30-day average
- Breaks above its 100-Day Moving Average of 162.7
- Up over 80% from its 52-week low of Rs 101 on March 25, 2020
- Both analysts tracking the stock have a buy recommendation
- Return potential for the stock as per Bloomberg data is 73%
F&O Snapshot: Active Options Contracts
- Nifty July futures add 6.1% and 7.03 lakh shares in Open Interest.
- Nifty Bank July futures add 32.2% and 4.05 lakh shares in Open Interest.
Nifty: July 2 Expiry
- 10,400 Call: Premium up 45.3% to Rs 74.7. The contract has added 1.35 lakh shares in Open Interest.
- 10,500 Call: Premium up 4.2% to Rs 28.5. The contract has added 2.43 lakh shares in Open Interest.
- 10,300 Put: Premium down 79.6% to Rs 24.6. The contract has added 26.6 lakh shares in Open Interest.
Nifty Bank: July 2 Expiry
- 22,000 Call: Premium up 56% to Rs 201.3. The contract has added 89,480 shares in Open Interest.
- 21,000 Put: Premium down 87% to Rs 31.7. The contract has added 5.96 lakh shares in Open Interest.
- 22,500 Call: Premium down 17% to Rs 44. The contract has added 2.76 lakh shares in Open Interest.
All But One Stock Gain On The Nifty Bank Index
June Auto Sales: Hero MotoCorp
- Overall sales up 4 times to 4,50,744 units as compared to the month of May.
- Major part of market demand emanating from rural & semi-urban markets.
- Momentum may continue over next few months due to normal monsoon, a bumper rabi crop and upcoming festive season.
- Total sales in April-June period at 5,63,426 units.
- Made significant progress in ramping-up production across all eight manufacturing facilities in India and globally.
- Over 95% customer touch points have been operational.
Shares recover from the day's low, up 0.75% at Rs 2,566 per share and are up for the second straight day.
Auto Sales Updates
- SML Isuzu: Overall sales in June at 186 units as compared to 1,214 units during the same period last year. Overall sales for the April-June period at 202 units as against 4,282 units last year.
- Auto Auto: Sales in the month of June down 71.8% to 1,044 units. Sales during the April-June period down 86% to 1,477 units.
Shares of Atul Auto are at the day's low, down 2.2% at Rs 165.55 per share.
Shares of SML Isuzu down 1% at Rs 381.4 per share.
First Quarter Business Update: APL Apollo Tubes
- Sales volumes at 2,38,311 tonnes, down 61% compared to the previous year
- Apollo structural sales at 1.12 lakh tonnes from 2.19 lakh tonnes
- Apollo Z sales down to 57,000 tonnes from 89,000 tonnes
- Apollo Galv sales at 13,000 tonnes from 27,000 tonnes
- Apollo Tricoat sales at 32,000 tonnes
- Apollo Standard sales at 24,000 tonnes
- Net debt at Rs 370 crore from Rs 784.1 crore
- Inventory at Rs 660 crore from Rs 784.2 crore
Shares are trading 4% higher at Rs 1,615 per share, up for the second straight day.
Markets At 2:10 P.M.
- Benchmark indices trade at the day's high
- Nifty up 1.3% at 10,428
- Sensex up 1.4% at 35,400
- Nifty Bank up 2.4% at 21,889
- Nifty Midcap Index up 0.5%
- Nifty Smallcap Index up 0.9%
- India Volatility Index down 3.3% at 28.16
- Nifty Media and Nifty PSU Bank Index gain over 2% each
- Nifty Auto and Nifty Metal Index up 0.5% each
- Nifty Pharma remains the top sectoral laggard; down 0.7%
- Nifty Realty declines for the sixth day; longest losing streak since March this year
- Axis Bank remains the top Nifty gainer; up 5%
- NTPC remains the top Nifty laggard; down 2.6%
- 993 stocks on the NSE trade with gains while 809 decline
Money Market Update
The rupee ended little changed but with a negative bias in today's session, snapping a four-day gaining streak.
The currency ended at 75.59 against the U.S. Dollar as compared to Tuesday's close of 75.51.
Today's losses meant the rupee was the third worst performing currency in Asia, behind the Thai Baht and the Indonesian Rupiah.
Commerzbank FX strategist Charlie Ray wrote in a note that despite several downside pressures, the rupee will should end the year at 76 against the greenback.
The central bank has room to cut benchmark repo rates by a further 50 basis points by the year-end on moderating inflation, Ray's note stated.
Yield on the 10-year government bond cooled off further ahead of the Reserve Bank's Open Market Operations on Thursday. The yield ended at 5.829% as compared to Tuesday's close of 5.904%.
ED Opposes JSW-Bhushan Deal
The Enforcement Directorate has opposed a plea by lenders, that sought the court's endorsement of Bhushan Power & Steel's sale to JSW Steel, Bloomberg reports citing people with knowledge of the matter.
The ED said that bankruptcy courts do not have the jurisdiction to allow seized properties to be transfered and opened for transactions, the sources said.
The ED has argued that founders of JSW and Bhushan are related parties as they had a joint venture for a coal block earlier.
A JSW representative declined to comment on the story while a spokesperson for the ED could not be reached.
Shares of JSW Steel are trading at the highest point of the day - up 1.4% at Rs 192.
Active Stock Options
- HDFC Bank's 1,100 Call: Premium up 27% to Rs 36.4. The contract has shed 88,000 shares in Open Interest.
- Axis Bank's 420 Call: Premium up 35.7% to Rs 30.6. The contract has added 4.9 lakh shares in Open Interest.
- Maruti Suzuki's 5,700 Put: Premium down 7.1% to Rs 199.9. The contract has added 22,200 shares in Open Interest.
Brokerage Reaction: Bharat Forge
Shares of the components manufacturer surged after brokerage firm Jefferies upgraded the stock to buy from its previous rating of underperform. Price target on the stock was also raised to Rs 425 from Rs 190.
Jefferies' rationale behind the upgrade:
- Ripe to play the next cycle
- FY22-23 should be strong with truck up-cycles in U.S. and India
- Outlook on the oil & gas business is weak but other tailwinds in place
- Expect sequential pick-up in operations in H2FY21
- Valuations at 2.8 times FY21E price-to-book are attractive
- Like the company's structural growth story, diversified business mix and distinctive capability to expand its footprint
- Expect severe downturn in FY21 and cut EPS estimates for the same by 25%
Shares gained as much as 4.9% to Rs 334.9 and is up for the second straight day. The stock ended 10% lower on June 29, the day it reported its fourth quarter earnings.
June Auto Sales: Mahindra & Mahindra
This is our second highest June sales ever. It is expected that this demand will continue to remain buoyant in the coming months.Hemant Sikka, President - Farm Equipment Sector, M&M
Shares trade near the day's high, gaining as much as 2.1% to Rs 521.40.
Buzzing Stock: Navin Fluorine
- Trading at an all-time high
- Gains as much as 5.1% to Rs 1,705
- Biggest single-day gain in a month
- Up for the second straight day
- Today's volumes are 3.9 times higher than its 30-day average
- Trading at a 133% premium compared to its peers on a blended forward price-to-earnings basis
- Has tripled from its 52-week low of Rs 570 on July 29, 2019
- 10 out of the 15 analysts tracking the stock have a buy recommendation; 0 sell calls
- Return potential of the stock as per Bloomberg data is 3.3%
Sluggish Start To European Markets
Benchmark indices in Europe have seen small gains at the start of the new quarter.
The Stoxx 600 index has opened 0.2% higher with oil, chemicals and healthcare stocks outperforming. Auto and banking stocks were the laggards.
Most Asian markets have ended with gains with the CSI 300 index ending at the highest level in over two years. The Nikkei 225 ended 0.7% lower. Futures on the Dow Jones are trading lower by 100 points.
Brent crude is up 1.4% at $41.84 per barrel while Gold is up 0.4% at $1,787.34/Oz.
Let's take a look at how benchmark indices have opened across Europe:
- Euro Stoxx 50 up 0.24% at 3,241
- CAC unchanged at 4,935
- FTSE 100 up 0.1% at 6,174
- IBEX 35 up 0.1% at 7,240
June Auto Sales: Volvo Eicher Commercial Vehicles
- Overall sales down 70.3% to 1,358 units
- Domestic sales down 75.4% to 1,016 units
- Exports down 16.7% to 305 units
- Volvo truck sales down 44.8% to 37 units
- Eicher bus exports up 28.6% to 45 units
Shares are little changed after gaining as much as 1.72% to Rs 18,649 in early trade.
Stock Reaction: Dr Reddy's Laboratories
The drugmaker today announced its partnership with Fujifilm corporation and Global Response Aid (GRA) to develop, manufacture and sell favipiravir tablets, a potential treatemnt of Covid-19.
The agreement grants Dr Reddy's the exclusive rights to manufacture the drug and also grants DRL and GRA to develop, sell and distribute the drug in all other countries except Japan, China and Russia.
The company will have exclusive rights for developing, selling and distributing the tablet in India.
Fujifilm will receive an upfront licence fee and royalties on sales from both Dr Reddy's and GRA.
A clinical study on Avigan is under progress from Fujifilm.
Shares fell as much as 1.5% to Rs 3,885 and are down for the sixth straight day. This is the longest losing streak for the stock in four months.
Contributors To Nifty's Gains
Stock Reaction: GMM Pfaudler
The makers of glass-lined reactors entered into a binding term sheet with De Dietrich Process Systems India for itemised sale of their manufacturing facility in Hyderabad.
The facility, equipped to manufacture Glass Lined Equipment will be sold for a total consideration of 6.25 million Euros, the company said in a statement.
The transaction is subject to completion of final due diligence and other documentation.
This acquisition will give us access to ready-made Glass Lined Equipment manufacturing capacity which will further strengthen our presence in the region.Tarak Patel, Managing Director, GMM Pfaudler
Shares gained as much as 4.9% to Rs 4,290, post the announcement.
Stock Reaction: Kalpataru Power Transmission
The company informed the exchanges on Tuesday that it has received new orders worth Rs 956 crore across various geographies.
The orders from India, Africa and the Middle East are for the T&D business while the company's international subsidiary has secured new T&D projects in Europe.
“These new order wins help us to consolidate our leadership position in the T&D market in India and Africa,” Manish Mohnot, Managing Director and CEO of the company said in a statement.
Shares gained as much as 5.1% to Rs 227.5 and are up for the second straight session.
Markets At Noon
- Benchmark indices trade near the day's high
- Nifty up 0.65% to 10,370
- Sensex up 0.8% to 35,191
- Nifty Bank up 1.6% at 21,703
- Nifty Midcap Index up 0.4%
- Nifty Smallcap Index up 0.5%
- India Volatility Index down 3.3% to 28.15
- Nifty Pharma remains top sectoral laggard; down 1.3%
- Nifty FMCG, I.T. and Realty indices are the other sectoral laggards
- Nifty PSU Bank index is the top sectoral gainer; up 2%
- Axis Bank is the top Nifty gainer; up 3.7%
- NTPC remains the top Nifty laggard; down 3.1%
- 901 stocks on the NSE trade with gains while 836 decline
Stock Reaction: Indiabulls Housing Finance
The company has allotted 2,500 secured, redeemable, NCDs of face of Rs 10 lakh each. The NCDs, aggregating to Rs 250 crore have been allotted on a private placement basis.
A large Indian Public Sector Bank has subscribed to these NCDs, according to the company's exchange filing.
The NCDs are for a tenor of 548 days and will mature on December 30, 2021. The coupon rate for the same is 9% per annum.
In a separate exchange filing, the company also said that the board will meet on July 3, to consider raising of funds through secured or unsecured debt or any other method as decided, either in local or foreign currency, as considered appropriate.
Shares gained as much as 12.1% to Rs 232.4.
Glenmark, Cipla Lead Losses On The Pharma Index
Covid-19 Update: Mahindra & Mahindra Financial Services
- Nearly 75% of the customers have opted for RBI's moratorium.
- Daily cash flow and liquidity has been impacted.
- New business was substantially lower than last year's volumes.
- Business operations may normalise only post September 2020.
- Repayment from HCV's and aggregator taxi segments can be further delayed.
- Overall volumes likely to be subdued for a few more months till the start of the festive season.
- Do not foresee any issue relating to servicing its debts or financing arrangements.
Shares are trading near the day's high, gaining as much as 3.46% to Rs 173.60.
June Auto Sales: Maruti Suzuki India
India's largest passenger car maker reported a 54% drop in overall sales for the month of March to 57,428 units.
Domestic sales fell 53.7% to 53,139 units while exports declined 56.4% from last year to 4,289 units.
The decline was mainly led by the mid-size car sales, which declined 76.2% from the previous year to 553 units. The mid-sized segment consists of vehicles like the Ciaz.
LCV sales declined 49.1% to 1,026 units while UV sales fell 45.1% to 9,764 units. The UV segment includes cars like S-Cross, Vitara Brezza and Ertiga.
The sales performance during June 2020 and Q1FY21 should be seen in the context of the ongoing Covid-19 pandemic, lockdowns and restrictions required for safety.Statement From Maruti Suzuki India
Shares are trading near the day's low, down 0.8% at Rs 5,793.
Stock Reaction: Steel Strips Wheels
The company has intimated the exchanges regarding another export order it has received from the U.S. Caravan Trailer market.
The order comprises of 10,700 wheels and is worth $1,70,000, according to the exchange filing. The order will be executed in the month of July and August from its Chennai plant.
Shares are off the day's high after gaining as much as 4.8% to Rs 456. The stock trades 2.5% higher, up for the second straight day.
Indian Banks Face Significant Capital Shortfalls, Says Fitch Ratings
Indian banks will require at least $15 billion in fresh capital to meet a 10% weighted-average common equity tier-1 scenario under a moderate stress scenario, according to Fitch Ratings.
The note from the ratings agency says that state-run banks will require bulk of the recapitalisation.
Fitch Ratings expects damage to balance sheets of banks led by heightened asset quality and earnings pressure for at least two years due to disruption in business activity and supply chains as well as shrinking personal incomes.
The agency had earlier stated that it expects India's economy to contract by 5% in FY21, followed by a recovery in FY22.
Bank Of Baroda Leads Gains On PSU Bank Index
Earnings Reaction: Godfrey Phillips
The cigarette manufacturer and distributor reported a 4% drop in revenue, mainly due to higher excise duty paid during the quarter.
Excise duty for the March quarter tripled to Rs 88.9 crore compared to the previous year.
Net profit was up 36.4% aided by a provision of Rs 15 crore in the base quarter on declining of investments.
Ebitda rose 80% while margins expanded to 15.3% from 8.1%, also due to change in accounting standards.
Shares fell as much as 5.7% - the most in over three months to Rs 960. The stock now trades at the lowest point of the day.
June Manufacturing PMI At 47.2
India's manufacturing PMI for the month of June rebounded to 47.2 from 30.8 in May. This also compares to levels of 52.1 seen in the month of June last year.
This is the third successive month of contraction, according to IHS Markit.
Output levels rose to the highest level since March 2020 at 46.7 from 19.6 in May.
New orders too have risen to a three-month high in the month of June.
A reading above 50 signals an expansion while that below 50 indicates contraction.
Earnings Reaction: ONGC
The upstream oil explorer reported a standalone net loss of Rs 3,098.3 crore for the quarter ended March. This is compared to a net profit of Rs 4,226.5 crore it reported during the quarter ended December.
The loss was due to an impairment loss of Rs 4,900 crore due to Covid-19.
It also had a deferred tax reversal of Rs 1,641.5 crore this quarter.
Net realisations fell to $49.01 per barrel from $58.24 per barrel on a sequential basis. Brokerage firm Citi expects net realisations to fall further in the first quarter of FY21, citing a sharp drop in oil prices. It has maintained its neutral rating on the stock with a price target of Rs 78.
Shares fell as much as 3.9% to Rs 78.2 and are among the top underperformers on the Nifty 50 index.
Stock Reaction: BASF India
The company has informed the exchanges of the transfer of its construction chemicals business to Master Builder Solutions. Shareholders of the company have approved of the divestment, the company said in an exchange filing.
The total consideration of the deal stands at Rs 595.16 crore, which has been received by the company.
The Board of Directors had approved the divestment of the construction chemicals business in February this year and was expected to be completed in Q2FY21.
Shares gained as much as 4.15% to Rs 1,185 and are up for the second straight day.
Markets At 10:10 A.M.
- Benchmark indices look to gain momentum on the upside
- Nifty up 0.4% at 10,343
- Sensex up 0.5% at 35,082
- Nifty Bank up 0.8% at 21,543
- Nifty Midcap index up 0.4%
- Nifty Smallcap index up 0.3%
- India Volatility Index down 2.2% at 28.47
- Nifty Pharma is the top sectoral laggard; down 0.5%
- Nifty PSU bank index is the top sectoral gainer; up 2%
- Nifty Media reverses losses to trade 1% higher
- UPL is the top gainer on the Nifty; up 3.2%
- NTPC is the top Nifty laggard; down 2.7%
- 906 stocks on the NSE trade with gains while 765 decline
Money Market Update
The rupee opened little changed in today’s session after ending higher for the fourth straight day on Tuesday.
The currency began trading at 75.53 against the U.S. Dollar as compared to Tuesday's close of 75.50.
The rupee ended the April-June period flat and was the third worst performing currency in Asia during the quarter.
India registered a rare current account surplus of $600 million during the January-March quarter, contrary to analysts expectation of a deficit worth $3 billion.
Within the bond market, traders will look forward to the sale of treasury bills worth Rs 35,000 crore in today's session.
Stock Reaction: Kotak Mahindra Bank
The MSCI Global Standard Indexes announced this morning that it has deferred potential increases in Foreign Ownership Limits, resulting from the recently implemented relaxation of the FPI limit of Indian companies to the sectoral limit
The sectoral limits published by NSDL and CDSL are new and market participants need more time to test the disclosure mechanism, the note said.
An increase in foreign ownership limits would have resulted in an increase in the weightage for Kotak Mahindra Bank, which has now been deferred. An increase in weightage would have also resulted in fresh inflows to the stock.
Shares fell as much as 3.3% to Rs 1,316 and are among the top laggards on the Nifty 50 index.
Earnings Reaction: Mishra Dhatu Nigam (MIDHANI)
The metals and metal alloys manufacturer reported a 49.7% drop in its net profit for the January-March period, as compared to the previous year.
Operational performance of the company was weak. Ebitda fell 54.7% compared to the previous year while margins narrowed to 24.6% from 32.9%.
The company has also declared a dividend of Rs 1.56 per share.
Shares fell as much as 7.55% to Rs 201.55. This was the biggest single-day drop in the stock in three months.
Coronavirus India Updates
- India reports 18,653 new cases in the last 24 hours
- Total cases in the country now at 5,85,493
- Active cases now at 2,20,114
- Patients that have been cured / discharged / migrated at 3,47,979
- Death toll rises to 17,400
- 507 deaths reported in the last 24 hours
- 13,157 patients recovered in the last 24 hours
June Auto Sales: Escorts
The tractor maker reported a 21.1% increase in overall sales for the month of June.
Total sales stood at 10,851 units as compared to 8,960 units during the same period last year.
Domestic sales rose 22.8% to 10,623 units while exports fell 26.9% as compared to the previous year to 228 units, the company wrote in an exchange filing.
We have seen unprecedented demand in June. The industry is expected to grow significantly, backed by pent-up demand of the lockdown period, better farmer sentiment and reasonably good availability of retail finance.Statement from Escorts
The company also said that its inventory levels have been the lowest ever - both with the company and with the channel.
“Supply chain situation, though better than before, continues to remain volatile,” the company said.
Shares gained as much as 2.84% to an all-time high of Rs 1,069.5. The stock is up for the third straight day.
Opening Bell: A Sluggish Start
Indian equity markets opened the new quarter and mid-week trade on a flat note but with a positive bias.
The S&P BSE Sensex opened 0.27% higher at 35,009 while the NSE Nifty 50 opened at 10,323, up 0.21%. Both benchmarks ended the April-June period with gains of close to 20%.
Sectoral indices opened on a mixed note but mostly flat. The Nifty Media index opened 0.6% lower while the rest were between 0-0.5% on either end of the spectrum.
Market breadth was in favour of the advances in early trade. 965 stocks on the National Stock Exchange opened with gains while 475 declined.
Asian markets continue to trade with gains while futures on the Dow Jones remain 75 points lower.
Latest On The Coronavirus
- Global cases rise to 10.4 million
- Death toll rises to 5,09,779
- Singapore PM says country has controlled the spread of the virus
- Goldman estimates 40% of U.S. has reversed the reopening
- 51 new cases reported in South Korea
- 10 areas of Melbourne go into lockdown before midnight
- 5,432 cases reported in Mexico
- Travellers to New York from eight additional states including California will be quarantined for 14 days
How Did The Fund Flows Fare On Friday
Key Stocks In Focus
- Jindal Steel & Power: The company's Mauritius arm accepts a binding offer from Templar Investments to divest its entire stake in its Oman asset - Jindal Shadeed Iron & Steel. The Enterprise Value of the deal is over $1 billion. The transaction is expected to close in a month. The deal will enable the company's debt reduction plans. Transaction is subject to approval from shareholders of JSPL and lenders of the Oman asset. Templar Investments is part of the promoter group of JSPL.
- Bharti Airtel: Carlyle Group to acquire approximately 25% stake in the company's data centre business - Nxtra Data Ltd. Enterprise Valuation of the transaction is approximately $1.2 billion. Bharti Airtel to continue holding the remaining 75% stake. Transaction subject to regulatory approvals.
- Kotak Mahindra Bank: MSCI defers until further notice, potential increase in Foreign Ownership Limits, resulting from the recently implemented relaxation of FPI limit of Indian companies to the sectoral limit.
- Indian Oil Corporation: Wholly-owned arm - IOC Middle East FZE, Dubai has signed an agreement with Beximco LPG of Bangladesh to form a 50:50 Joint Venture in Bangladesh for the LPG business. As per the plan, the venture will begin functioning by acquiring Beximco's existing LPG assets. It also aims to set up a large LPG terminal at a deep-water port in Bangladesh.
- Kalpataru Power Transmission: Gets new order for transmission and distribution segment worth Rs 956 crore.
- Bank of Baroda: Board approves issuance of Basel-III compliant AT-1 bonds for an issue size not exceeding Rs 2,000 crore in single or multiple tranches.
- GMM Pfaudler: Enters into binding term sheet with De Dietrich Process Systems India, for itemised sale of their manufacturing facility in Hyderabad. The deal will be done for a total consideration of 6.25 million Euros.
- Indiabulls Housing Finance: To consider raising funds on July 3.
To know more about the other stocks in focus, earnings reported after market hours and brokerage upadtes, click here.
Your Trade Setup For The Day
A Check On Indian ADRs
U.S. Markets On Tuesday
- Benchmark indices register best quarter since 1998
- S&P 500 ended 1.5% higher, ending with gains of 20% for the quarter
- Nasdaq composite surged 31%, most since 1999
- Boeing shares fell after one of its largest European customers scrapped a $10.6 billion deal
- Anthony Fauci, infectious-disease expert said that if behaviours do not change, Covid-19 cases may rise to 1 lakh per day
- Fed Chair Jerome Powell reiterated to the Congress about the importance of curbing the virus as the economy rebounds
- Bloomberg Dollar Spot Index fell 0.2%
- West Texas Intermediate crude fell 0.9% to $39.35 per barrel. It has recovered the losses in today's session.
Get your daily fix of the global markets here.
Further Sideways Movement?
Indian equity markets rounded of the April-June period with a sluggish day of trade on Friday. However, benchmark indices ended with gains of close to 20% for the quarter - the best performance since June 2009.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.4% to 10,234 as of 8:10 a.m.
Asian markets have begun the new quarter and mid-week trading on a mixed note. Shares in Japan have edged lower on sub-par volumes after confidence of the country's manufacturers fell to the lwowest since 2009.
Markets in Australia and South Korea are edging higher while those in Hong Kong are shut on account of a holiday.
Futures on the Dow Jones trade 75 points lower after the benchmark index ended with gains of close to 1% on Tuesday.
Treasuries have ticked lower while the U.S. Dollar has edged higher. West Texas Intermediate crude rose 1.2% to $39.72 per barrel.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
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