KEY HIGHLIGHTS
Closing Bell: Sensex, Nifty Extend Gains For Third Day
Indian equity benchmarks closed higher for the third consecutive trading session, led by the gains in Reliance Industries Ltd. and ICICI Bank Ltd.
The S&P BSE Sensex closed 166 points or 0.42 percent higher at 39,950.46 and the NSE Nifty 50 closed at 11,965.60, up 0.36 percent. The broader market index represented by the NSE Nifty 500 Index ended 0.43 percent higher.
Besides, the NSE Nifty MidCap 100 and the NSE Nifty SmallCap 100 rose 0.68 percent and 0.1 percent respectively.
The market breadth, however, was tilted in favour of sellers. About 960 stocks fell and 808 shares declined on National Stock Exchange.
The rise in the Nifty has not been supported by the overall market breadth, which is remaining disturbing at least in the last few weeks, Amit Shah, technical and derivative analyst at BoB Capital Markets told BloombergQuint in an interaction earlier today.
“Even though the bias remains positive considering the higher top and lower bottom that the 50-stock index has formed, there is not much of a strength seen in the Index until there is an improvement in the market breadth. “
Nine out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Metal Index’s 1.3 percent gain. On the flipside, the NSE Nifty FMCG Index was the top sectoral loser, down 0.16 percent.
Moody's Places Yes Bank's Ratings Under Review For Downgrade
Moody's Investors Service said in a statement today that it has placed Yes Bank’s foreign currency issuer rating of Ba1 under review for downgrade.
“The review for downgrade takes into account Moody's expectation that the ongoing liquidity pressures on Indian finance companies will negatively impact the credit profile of Yes Bank, given the bank's sizeable exposure to weaker companies in the sector,” it said.
According to Moody’s Investors Service:
- Expect significant pressure on Yes Bank's asset quality and therefore profitability and capital position.
- Nevertheless, the impact will be somewhat cushioned by the bank's proactive loan loss provisioning for anticipated stress.
Stocks Moving On Heavy Volumes
Zensar Technologies
- Stock rose as much as 7.8 percent to Rs 271.35
- Trading volume was more than 12 times its 20-day average.
Gujarat Pipavav Port
- Stock fell as much as 3.1 percent to Rs 81.
- Trading volume was 19 times its 20-day average.
KPIT Technologies
- Stock rose as much as 5 percent to Rs 99.
- Trading volume was more than quadruple its 20-day average.
Market Check: Sensex, Nifty Set To End Higher For The Third Day
Indian equity benchmarks are set to end higher for the third consecutive trading session.
The S&P BSE Sensex rose 160 points or 0.41 percent to 39,949 as of 3 P.M. and the NSE Nifty 50 traded near 11,965.
Thirty Two out of 50 stocks in the NSE Nifty 50 advanced, led by Zee Entertainment Enterprise’s 3.3 percent gain. On the flipside, Indiabulls Housing Finance was the top loser, down 8.2 percent.
Fab Four Stocks Of The Day
Sterlite Technologies
- Stock rose as much as 12 percent to Rs 194.40.
- Twin Star Overseas Ltd., which is owned by Anil Agarwal’s Volcan Investments Cyprus Ltd., released entire pledge on 20.74 crore shares, worth 52.01 percent equity share capital.
Bharat Dynamics
- Stock rose as much as 6.2 percent to Rs 303.80.
- The company signed a contract worth Rs 1187.8 crore for the supply of heavy weight torpedoes, according to its stock exchange filing. The contract is to be executed in the next 42 months.
Jain Irrigation
- Stock halts six-day losing streak, its longest in over a month.
- Shares rose 11 percent to Rs 41.45.
- The company is said to divest its pipes business, Dalal Street Investment Journal reported quoting the company’s top management official.
CG Power and Industrial Solutions
- Stock rose as much as 1.9 percent to Rs 32.95.
- Trading volume was double its 20-day average.
Expect Nifty To Touch 12,750 Levels In The Medium-Term, Kotak Securities Says
Indian equity benchmark NSE Nifty 50 is expected to touch 12,750 level in the medium term.
That's according to Sanjeev Zarbade, vice president-PCG Research at Kotak Securities.
The 50-stock index is not expected to touch new levels in the medium term due to expensive valuations, Zarbade told BloombergQuint in an interaction. “The Nifty is trading at 19.3 times estimated forward earnings per share and that leaved limited room for it to scale up from the current levels.”
Going forward, Monsoons, G-20 Meeting, Federal Reserve Meeting and the Union Budget will be the factors that could influence investors sentiment, he said.
Europe Market Check: Equities Advance
European equities climbed, led by gains in mining stocks after iron ore futures rallied above $100 a ton amid resilient Chinese demand.
Market Check: Sensex Reclaims 40,000; Nifty Near 12,000
Indian equity benchmarks were trading at day’s high.
The S&P BSE Sensex rose over 250 points to reclaim 40,000-mark and the NSE Nifty 50 traded near 12,000, up 0.56 percent. The gains in the benchmark indices were led by the rally in Yes Bank Ltd. and ONGC.
On the flipside, Indiabulls Housing Fiance continued to be the worst performer on Nifty after PTI reported that the company was accused of misappropriating Rs 98,000 crore of public money.
Besides, Jet Airways was also in focus. The stock fell 15 percent intraday on reports Etihad Airways and Hinduja Group decided to halt talks for a potential investment in the company.
Hinduja, Etihad Halt Talks For Investment In Jet Airways, Shares Slump
Etihad Airways PJSC and Hinduja Group have decided to halt talks for a potential investment in Jet Airways (India) Ltd. till clarity emerges on whether insolvency proceedings against the airline would be initiated, a senior official at State Bank of India told BloombergQuint on the condition of anonymity. (Read the full story here).
Shares of jet Airways fell 9.7 percent as of 1:40 P.M. to Rs 112.70. The stock fell 14.8 percent intraday.
Market Check: Sensex, Nifty RangeBound
Indian equity benchmarks were rangebound during the afternoon trade.
The S&P BSE Sensex traded around 39,950 during the last one hour and the NSE Nifty 500 was flirting with 11,950 level.
Nine out of 11 sectoral gauges compiled by National Stock Exchange advanced, led by the NSE Nifty PSU Bank Index’s 1.1 percent gain. On the flipside, the NSE Nifty Realty Index was the top sectoral loser, down 0.16 percent.
State-Run Banks Must Be Recapitalised Without Delay, Says Dalton Capital’s UR Bhat
State-run banks are in dire need of recapitalisation, which would enable their reasonable growth, according to UR Bhat, managing director of Dalton Capital Advisors told BloombergQuint
“There are no (public-sector) banks which have enough capital. The recapitalisation could help relatively healthier banks capture growth momentum in the economy,” Bhattold BloombergQUint in an interaction. This process, according to Bhat, can't be delayed any further.
Watch the full conversation here:
Click here to read about the sectors where Dalton Capital is betting on.
Market Check: Sensex, Nifty At Day’s High
Indian equity benchmarks were trading at day’s high.
The S&P BSE Sensex rose 162 points or 0.41 percent higher at 39,947.01 and the NSE Nifty 50 rose as much as 0.37 percent to 11,966.25. The broader market index represented by the NSE Nifty 500 Index rose 0.25 percent.
The gains in the benchmark indices were led by Yes bank Ltd. and ONGC.
Sun Pharma was the worst performer on Sensex and second-worst performer on Nifty after brokerage and research firm Goldman Sachs downgraded the company’s stock rating and cut price target.
Besides, Indiabulls housing Finance traded 5.7 percent lower, making it the worst performer on Nifty. The stock fell 8.5 pecent intraday.
Bharti Airtel Swings On Dispute Settlement Plans
Shares of the telecom operator snapped fluctuated between gains and losses to trade 0.37 percent higher at Rs 364.80.
The company will pay the Tanzanian government 60 billion Shillings ($26.2 million) over a period of five years to settle an ownership dispute, according to its exchange notification. It will pay 1 billion Shillings every month to the government for sixty months starting April, Chairman Sunil Mittal said at a briefing in Tanzania’s Dar es Salaam.
Besides, Bharti Airtel will also pay the government a special divided at end of this year, Mittal said without mentioning the amount.
The stock rose 3.2 percent in the past five days and advanced 12 percent in the past 30 days, according to Bloomberg data.
Tata Motors’ JLR Sales Decline 12% In May
Tata Motors-owned Jaguar Land Rover sales fell 12.2 percent on a yearly basis to 42,370 units in May, according to its stock exchange filing.
Key sales highlights (YoY)
- Jaguar retail sales fell 9.4 percent to 13,142 units.
- Land Rover retail sales fell 13.5 percent to 29,228 units.
- JLR China sales retail fell 26.4 percent, overseas sales down 18.4 percent.
- North America retail sales fell 1.5 percent.
- U.K sales down 6.7 percent
- Europe sales decline 9.6 percent.
Rumours Have Damaged Value Of Group Stocks, Says Anil Ambani
Here are the key highlights from the conference call:
- Strong retail shareholding base remains un-eroded.
- Have made aggregate debt servicing payments of over Rs 35,000 crore in the last 14 months from April 2018 to May 2019.
- These comprise principal repayments of Rs 25,000 crore & interest payment of nearly Rs 11,000 crore.
- These payments have been made in the face of insurmountable odds & the most challenging conditions.
- During this entire period, lenders from all categories, have provided zero net additional liquidity to any entity.
Market Check: Sensex Trades Near 39,900, Nifty Tests 11,950
Indian equity benchmarks were trading at a narrow range in the last one hour, but managed to hold gains.
The S&P BSE Sensex traded between 38,878 and 39,923 in the last hour compared to yesterday’s close of 39,784.52. The NSE Nifty 50 hovered around 11,950, up 0.17 percent
The small-cap index underperformed the benchmarks as the NSE Nifty SmallCap 100 fell 0.1 percent, led by the declines in Jet Airways India Ltd. and Deepak Nitrite Ltd.
Passenger Car Sales Fall 26% In May: SIAM
Nifty Pharma Worst NSE Sectoral Performer
The NSE Nifty Pharma Index fell 1.1 percent, making it the worst sectoral performer on National Stock Exchange.
Sun Pharma Declines After Goldman Downgrades Stock, Cuts Price Target
Shares of the country’s largest pharmaceutical company fell as much as 4.5 percent to Rs 384.
Research firm Goldman Sachs downgraded its recommendation on the stock to ‘Sell’ from ‘Neutral’. The brokerage company also cut its price target to Rs 355 from Rs 437, indicating a potential downside of 11.7 percent from the last regular trade.
Here’s what Goldman Sachs had to say on Sun Pharma:
- Key businesses facing competitive threats during transitional phase.
- Soft start in specialty clouds earnings trajectory.
- Better entry points could be in store for investors.
- The stock traded 20 percent below the Bloomberg consensus one-year target price.
F&O Check: Nifty 11,900 Put Option Gains Falls 21%
Nifty’s 11,900 put option contract was among the most active Nifty option contracts on National Stock Exchange.
Premium on the weekly contract, which is set to expire Thursday fell 20.9 percent to Rs 38. Over 6.51 lakh shares were added to the open interest which stood at over 20.23 lakh shares.
Market Check: Sensex, Nifty Regain Momentum After Shaky Start
Indian equity benchmarks regained momentum after fluctuating between gains and losses in the opening trade.
The S&P BSE Sensex traded over 100 points higher at 39,887 as of 10:05 a.m. and the NSE Nifty 50 rose 0.2 percent to 11,945.
Sterlite Technologies was in focus during the trade after it rose 12 percent intraday as the promoter released pledge shares. Besides, Indiabulls Housing Finance was also under investors radar and the stock was the worst performer on Nifty.
Bet On Better Rated Banks, NBFCs For Fresh Investments, Angel Broking Says
Mayuresh Joshi, fund manager (PMS) at Angel Broking spoke to BloombergQuint in an interaction.
Here are the key highlights from the conversation:
On Private Banks
- Federal Bank is our top pick in the mid-cap space.
- The loan growth for the lender is expected to be very stable going forward.
On Financial Sector
- The NBFC Universe is grappling with a whole host of issues
- It is always a safer bet to stay with better quality NBFCs.
- For investors who are looking at fresh entry, I think better rated banks and NBFCs becomes the first choice because there are too many uncertainties surrounding the NBFC universe in particular.
Indiabulls Housing Finance Worst Performer On Nifty
Shares of the housing finance company fell as much as 6.2 percent to Rs 687.10.
Indiabulls Housing refuted the allegation of siphoning Rs 98,000-crore, terming it as “bizarre” and made by a “racket of blackmailers”, in an exchange filing. The original complaint (of Rs 55,000-crore alleged fraud) by the blackmailers was dated May 6, 2019, the statement said. After that the company filed a first information report on June 4.
The stock was the worst performer on Nifty. Trading volume was nearly five times its 20-day average, Bloomberg data showed.
Sterlite Technologies Jumps After Promoter Releases Entire Pledge Shares
Shares of the optical cables maker extended gains for the second consecutive trading session and rose as much as 11.8 percent to trade at over a one-month high at Rs 194.
The company’s Promoter Twin Star Overseas released entire pledge of 20.74 crore Sterlite Technologies’ shares (52.01 percent) of on June 10, according to an exchange filing. The company said that the pledge was released as per terms of facility agreement with lenders. The pledge was a collateral for loan taken by Volcano Investment Cyprus, the statement added.
The stock trades at 11 times its estimated earnings per share for the coming year, Bloomberg data showed. Of the shares traded, 56 percent were at the ask price and 31 percent were at the bid.
The release of pledge is the best thing that has happened and the move will reinforce investor confidence, Sterlite Technologies’ Grope CFO Anupam Jindal told BloombergQuint in an interaction, adding that the promoters have no intentions to pledge the shares again given the sensitivity of this on investors.
Here are the key highlights from the conversation:
- Will continue to invest in new technology for future growth.
- Seeing an increase in traction from international players for added products.
- Fibre prices have remained stable for us
- Continue to operate in a price range of $7-8.
- Expanded capacity to start anytime soon. Expect better utilisation and realisation from this capacity in the second half of the current financial year.
- Have multiple large sticky customers from Europe.
- No slowdown in orders from Bharat Net initiative.
- The pace of order flow could be better for the same.
Watch the full interaction here:
Opening Bell: Sensex, Nifty Open Higher
Indian equity benchmarks opened higher in today’s trade, in line with their Asian peers.
The S&P BSE Sensex rose as much as 0.36 percent or 142 points to 39,926.82 and the NSE Nifty 50 rose as much as 0.31 percent to 11,959.95. The broader market index represented bythe NSE Nifty 500 Index rose as much as 0.27 percent.
The market breadth was tilted in favor of buyers. About 770 stocks advanced and 641 shares declined on National Stock Exchange.
Seven out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Metal Index’s 0.56 percent advance. On the flipside, the NSE Nifty Realty Index was the top sectoral loser, down 0.59 percent.
Pre-Market Update: Sensex, Nifty Set For Positive Start
Indian equity benchmarks are set to open on a positive note in today’s trade. The S&P BSE Sensex rose over 100 points to hit above 39,900 and the NSE Nifty 50 traded above 11,962.
Money Market Update: Rupee Opens Higher
The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.32 percent to 69.45 against the greenback.
The local legal tender is set to gain as crude prices ease and China unexpectedly set the yuan’s daily reference rate stronger than 69 to a dollar, in a move that is seen as stemming further weakness. Inflows from global funds into Indian assets are also likely to underpin the rupee, traders said.
Your Complete F&O Trade Setup
June Futures
- Nifty futures closed at 11,933.8, premium of 11 points versus 30 points
- Bank Nifty futures closed at 31,044, premium of 10.7 points versus 48 points
Options
- Nifty PCR at 1.36 versus 1.32 (across all series)
Nifty Weekly Expiry June 13
- Max OI on call side at 12,000 (22 lakh shares)
- Max OI on put side at 11,800 (14.2 lakh shares)
- OI addition seen at 11,900P (+5.9 lakh shares), 11,850P (+3 lakh shares)
- OI shedding seen at 11,800C (-2.2 lakh shares), 11,850C (2 lakh shares)
Nifty Monthly Expiry June 27
- Max OI on call side at 12,500 (27 lakh shares)
- Max OI on put side at 11,500 (28.9 lakh shares)
- Max OI addition seen at 11,500 (+1.1 lakh shares), 11,800P (+1.1 lakh shares)
Brokerage Radar: HDFC, Sun Pharma, Voltas
Nomura on HDFC
- Downgraded to ‘Neutral’ from ‘Buy’; hiked price target to Rs 2,300 from Rs 2,000.
- Resilient business model to weather current liquidity crisis.
- Rate cycle becoming favourable as well; part of gain to fund higher liquidity levels.
- But valuations near fair now.
Goldman Sachs on Sun Pharma
- Downgraded to ‘Sell’ from ‘Neutral’; cut price target to Rs 355 from Rs 437.
- Key businesses facing competitive threats during transitionary phase.
- Soft start in specialty clouds earnings trajectory.
- Better entry points could be in store for investors.
HSBC on Indian Metals
- Commodity and metal stocks have been severely hurt by ongoing trade tensions.
- More is at stake as current economic and trade environment is weaker.
- Further escalation likely to aggravate the situation.
- Resolution of tensions appears key catalyst for realisation of upside.
- Hindalco: Maintained ‘Buy’; cut price target to Rs 270 from Rs 300.
- Hindustan Zinc: Maintained ‘Hold’; cut price target to Rs 240 from Rs 250.
- Vedanta: Maintained ‘Hold’; cut price target to Rs 190 from Rs 205.
- NALCO: Maintained ‘Buy’ with a price target of Rs 65.
Jefferies on Voltas
- Maintained ‘Buy’ with a price target of Rs 700
- 2019-20 starts off on a good note.
- Believe Voltas missed some post-election upside given weak March quarter engineering margins.
- Recovery in the first quarter coupled with strong AC growth should drive further upside.
Trading Tweaks: Stocks Moving Into Short-Term ASM Framework
- Savita Oil Technologies ex-date for share buyback
- Syngene International ex-date for bonus issue 1:1
- Mcleod Russel to move into ASM Framework
- Uniply Industries Eros International Media IL&FS Investment Managers to move into short term ASM Framework
- Navkar Corporation, Bajaj Healthcare Roto Pumps to move out of short term ASM Framework
- Kridhan Infra price band revised to 5 percent
Pledge Share Details: Adani Enterprises, Adani Ports, Max Financial Services, Zee Media Corporation
- Adani Enterprises promoter Adani Tradeline revoked pledge of 51.5 lakh shares on June 6
- Adani Ports & SEZ promoter Adani Tradeline revoked pledge of 19 lakh shares on June 6
- Max Financial Services promoter group Max Ventures Investment Holdings revoked pledge of 1.5 lakh shares on June 4
- Zee Media Corporation promoter 25FPS Media invoked pledge of 1.63croreshares from April 8-23
(As reported on June 10)
Bulk Deals: Vaibhav Global
Vaibhav Global
- Motilal Oswal MF acquired 16.6 lakh shares or 5.09 percent equity at Rs 770 each.
- Promoters Nirmal Kumar Bardiya, Brett Plastics, Deepti Agrawal and Rahim Ullah sold 16.6 lakh shares or 5.09 percent equity at Rs 770 each.
Stocks To Watch: Bharti Airtel, DHFL, Indiabulls Housing Finance
- Sterlite Technologies: Vedanta based promoter Twin Star Overseas released entire pledge of 20.74 crore shares (52.01 percent) on June 10. Company said that the pledge was released as per terms of facility agreement with lenders. Pledge was a collateral for loan taken by Volcano Investment Cyprus.
- Indiabulls Housing Finance: Refuted the allegation of siphoning Rs 98,000-crore, terming it as “bizarre” and made by a “racket of blackmailers”. (More details here)
- Dewan Housing Finance: Completed sale of entire stake (9.15 percent) in Aadhaar Housing Finance to Blackstone’s arm.
- Bharti Airtel will pay the Tanzanian government 60 billion Shillings ($26.2 million) over a period of five years to settle an ownership dispute. The company will pay to the government 1 billion Shillings every month for sixty months starting April, Chairman Sunil Mittal said at a briefing in Tanzania’s Dar es Salaam. The company will also pay the government a special divided at end of this year, Mittal said without mentioning the amount.
- Reliance Industries: Plans to shut down one of crude distillation units and coker unit in Jamnagar for routine maintenance and inspection activities for three-to-four weeks from June 20. Other crude distillation and secondary processing units are expected to operate normally during this period.
- J&K Bank said that the state government has ordered probe after getting complaints.
- Petronet LNG: Facilities related to expansion of Dahej LNG Terminal from 15 to 17.5 MMTPA has been commissioned and under stabilisation, with additional gas send-out already commencing.
- Yes Bank: Ajai Kumar resigned from the post of Non-Executive Director with effect from June 9 due to personal reasons.
- Parag Milk Foods launched premium milk brand in Singapore. Milk to be sold under brand name of Pride of Cows.
- Fortis Healthcare: Yes Bank said that it has sold 1.51 crore shares (2 percent) in various tranches since December 2018. Thereby reducing stake by 2 percent from 8.41 percent to 6.41 percent, as per exchanges.
- Eveready Industries: India Ratings and Research has downgraded company’s pong term credit rating to IND BBB from IND A+ and maintained rating watch to negative. Reason for downgrade is due to increased leverage and weakened liquidity.
- IL&FS Engineering Services entered into a settlement agreement with NHAI against Arbitration Award. Company receives claim of Rs 150.15 crore.
- IDBI Bank entered into a Standalone Health Insurance tie-up with Max Bupa with effect from June 1.
- Muthoot Capital Services completed assignment of Rs 84.95 crore on June 7. The company said that it has raised Rs 196.9 crore through securitisation with this transaction in the current financial year.
- Wipro launched digital solutions for global airlines for crew management.
- India Cements: Aditya Birla Sun Life MF sold 67.66 lakh shares on June 6, reducing its stake from 7.31 percent to 5.11 percent.
- SH Kelkar fixed June 20 as record date for share buyback.
- Tata Sponge Iron: Board to meet on June 13 to consider the terms of rights issue.
- Yes Bank and Fortis Healthcare: Yes Bank sold 1.51 crore shares or 2 percent equity in Fortis Healthcare on June 7.
- Lupin: Sunil Makharia, president (finance), has been appointed as the interim CFO. The board is in the process of selecting the next Chief Financial Officer.
- Talwalkar Better Value Fitness: Company-backed startup Sarva Yoga raised over $4 million from global investors at a valuation of $20 million.
- IndusInd Bank and Bharat Financial: Received NCLT approval for merger.
Commodity Cues: Brent Crude Above $62/Barrel
- Brent crude rose 0.14 percent to $62.38 per barrel.
- West Texas Intermediate crude rose 0.1 percent to $53.31 a barrel after sliding 1.4 percent Monday.
- Gold was little changed at $1,329.30 an ounce after tumbling 1 percent Monday.
London Metal Exchange
- Copper ended 1.3 percent lower.
- Zinc ended lower for the second day, down 0.32 percent.
- Aluminium ended 0.62 percent higher.
- Nickel halted its longest losing streak in over six months, closed 0.25 percent higher.
- Lead resumed gains after a one-day blip, closed 3.1 percent higher.
- Tin ended 0.08 percent higher.
Nifty Futures Suggests Positive Open; Asian Stocks Edge Higher
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.19 percent to 11,964.50 as of 8 a.m.
Asian stocks headed higher Tuesday as investor focus turned to the U.S.-China trade arena, while Treasury yields were stable after Monday’s gains.
Japan’s equity benchmark rose, while gains in Hong Kong and China were more modest as markets opened.
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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