Nifty Fails To Hold 9,600 As Automakers Lead Decline

Indian shares declined the most in almost a week led by automakers and oil companies as the commodity remained mired in a bear market.

The S&P BSE Sensex dropped 0.5 percent to 31,113. For the week, the index closed little over 0.2 percent. The NSE Nifty 50 Index, however, lost over 0.1 percent for the week. The benchmark index closed nearly 0.6 percent to 9,574 today.

The market breadth was firmly tilted in favour of the sellers. About 1,245 shares declined and 266 advanced on the NSE.

Fortis Healthcare Says

• Company had approved fund raising options up to Rs 5,000 crore
• Options 'included' but were not limited to QIP, FCCBs or any other method
• Proposal was duly approved by shareholders
• Still evaluating best possible way to raise funds

Shares of Fortis were trading 10.8 percent lower at Rs 176.10 on the National Stock Exchange

Board of Directors of Piramal ENterprises Ltd. approved the issue of unsecured Non-Convertible Debentures on a private placement basis.

The company aims to raise Rs 125 crore through this issue. The NCDs will have a tenor of 3-years and will carry a coupon rate of 8.2 percent per annum, the company said in an exchange filing.

Shares of the company were trading 1.5 percent lower at Rs 2,487 on the National Stock Exchange.

• Indian Metals and Ferro Alloys gains 5 percent to Rs 473.80, hits upper circuit
• Odisha State Pollution Control Board reinstated the consent to operate Sukinda and Mahagiri Mines
• Consent valid as before until March 2021
• Stock has gained 23 percent in 2017
• Stock has gained 240 percent over a 12-month period
• Trading volumes are 7-times its 30-day average

• IRB InvIT Fund has 65 lakh shares change hands in a block
• Himatsingka has 22.2 lakh shares (or 2.3 percent equity) change hands in a single block
• Crompton Greeves has 15.6 lakh shares change hands in a block
• Max India has 1.15 crore shares change hands in a block

Source: Bloomberg

The divergence between building price and momentum panning out over the last three months can lead to a correction for the Indian benchmark Nifty 50 Index, said CLSA’s global technical analyst Laurence Balanco, in his latest note to clients.

He also added that the correction if it does happen should be looked upon as a buying opportunity, as the drop will only be a short term blip.

• Stock up for eight trading sessions, best performance since March 19, 2010
• Has added 9.3 percent in market value in the interim
• Trading volume 3 times its 20-day average (Bloomberg data)
• Up 33% year-to-date vs 9.4% on S&P BSE Oil & Gas Index (top performer on the index as well)

• Advance-Decline ratio for Nifty 500 deteriorates
• Index sees 6 losers for every gainer
• Midcap private banking stocks decline
• Karnataka Bank, Karur Vysya Bank, DCB Bank correct as much as 4-5 percent
• Other losers include Tyre stocks, real estate, housing finance companies and broking firms

Tata Steel sold its entire 2.9 percent stake in group company Tata Motors to parent Tata Sons in a single block deal. Around 8.35 crore shares changed hands on the BSE, Bloomberg data showed. The shares were sold at Rs 453.10 apiece, valuing the entire transaction at Rs 3,785 crore.

The steelmaker is expected to use the funds to pare some of its Rs 72,367 crore debt, as of March, according to the company’s results.

Indian shares opened flat in-line with Asian peers slated to decline for the second straight week.

The NSE Nifty 50 index was little changed at 9,626 while the S&P BSE Sensex index was also flat at 31,285.

The market breadth was firmly tilted in favour of the buyers. 856 stocks advanced compared to 479 stocks that declined.

The rupee opened flat at 64.56 against the U.S. Dollar.

The rupee is set for its second week of decline against the U.S. dollar, the longest since December 2016. Markets in the U.S. are back to weighing the odds of another rate hike.

The rupee is expected to move in the range of 64.50-64.70 against the dollar.

Bonds snapped a 3-day gaining streak on Thursday as a decline in yields kept buyers away. Traders are finding this as a profit booking sell-off as a good monsoon may prompt the RBI to cut interest rates further.

• Fortis Healthcare: IHH says no ongoing transactions in India right now
• Mindtree: To consider buyback on June 28
• Wockhardt: Pays 23 Million Pounds to Teva to settle claims in the U.K.
• Mahindra & Mahindra: Credit Suisse says farm loan waiver may support tractor demand; maintains ‘outperform’ rating on the stock
• Persistent Systems: Morgan Stanley bought 13.18 lakh shares or 1.65 percent stake at Rs 676.66 each

For a complete list of stocks to watch, click HERE!

• RBI’s inflation targeting framework is strong, says Urjit Patel
• India signs loan pact with World Bank for Andhra power projects
• Rosneft says Essar takeover is done pending final details
• Investor objects to Flipkart-Snapdeal merger plan
• Telecom minister meets Mittal, Ambani; assures ‘corrective steps’ (PTI)
• GoAir plans fleet expansion to catch up with peers
• Resolve 55 bad loan accounts In six months or face insolvency: RBI To banks
• Employment task force may suggest overhaul of data collection (PTI)

Good Morning!

The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India, was little changed at 9,634.

Asian equities were set to close the week on a tepid note, as oil remained below $43 a barrel, after a series of Federal Reserve speakers did little to alter projections for the path of U.S. interest-rate increases.

Japanese shares were little changed while Australian and South Korean equities nudged higher. Chinese equities are in the limelight as the nation’s banking watchdog raises scrutiny on some of the biggest dealmakers.

Crude halted a losing streak after tumbling into a bear market, but concerns of a supply glut persisted, helping gold to continue climbing back from a one-month low.

West Texas Intermediate crude gained 0.2 percent to $42.84 a barrel. WTI rose 0.5 percent, after falling into a bear market earlier in the week. Meanwhile, gold rose 0.1 percent to $1,251.28 an ounce, gaining for the third straight day.

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