The Bombay Stock Exchange Building at Dalal Street, Mumbai. (Photographer: Anirudh Saligrama/BloombergQuint)

Sensex, Nifty Extend Gains To Second Day

BQ Live

Closing Bell: Sensex, Nifty Extend Gains To Second Day

Indian equity benchmarks extended gains for the second day in a row, led by Reliance Industries and ICICI Bank.

The S&P BSE Sensex Index closed 0.8 percent higher at 35,463.08 and the NSE Nifty 50 Index closed at 10,768.35, up 0.8 percent.

The market breadth was tilted in favour of buyers. All the 11 sectoral gauges compiled by NSE advanced, led by NSE Nifty Realty Index’s 2.9 percent gain.

Tata Motors Extends Gain After JLR Sales Rise In May

Shares of the automaker extended gains for the second straight trading session and rose as much as 3.7 percent to Rs 306.70.

The company’s luxury car unit – Jaguar Land Rover sold 48,281 units in May, an increase of 6.1 percent from the year ago month, according to its stock exchange notification.

The stock declined 29.6 percent so far this year, compared to 4.9 percent in the country's benchmark Sensex.

From Bloomberg: Avoid Short Selling Nifty As It Is Forming A Base, Angel Broking Says

“Traders should not short sell the NSE Nifty 50 Index as it is forming strong support around 10,500-10,600 levels,” Bloomberg reported quoting Angel Broking. The broking firm also advanced traders to focus on individual stocks, the report added.

Mandhana Retail Expects Operating Margins To Increase By 15-20%

Mandhana Retail Ventures Ltd. expects its operating margins to increase by 15-20 percent in the current financial year, its Chief Financial Officer Hemant Gupta told BloombergQuint in an interaction.

Key highlights from the conversation:

  • Expect the return on capital and equity to improve moving forward.
  • Demonetisation, GST disruption had impacted business for last two financial years.
  • Billionaire investor Rakesh Jhunjhunwala continues to hold over 12 percent stake in the company.
  • Planning to open 12 new stores this year.

Stocks Moving On Heavy Volumes

Sharda Cropchem

  • Stock rose as much as 5.5 percent to Rs 420.
  • Trading volume was 16.8 times its 20-day average.

Redington India

  • Stock rose as much as 4.9 percent to Rs 121.45.
  • Trading volume was 14.4 times its 20-day average.

Avanti Feeds

  • Stock rose as much as 18.6 percent to Rs 1,926.
  • Trading volume was 8 times its 20-day average.

Himachal Futuristic Communications

  • Stock rose as much as 9.1 percent to Rs 30.
  • Trading volume was 4.4 times its 20-day average.

Sterlite Technologies

  • Stock rose as much as 6.8 percent to Rs 301.50.
  • Trading volume was 5.2 times its 20-day average.

NOCIL

  • Stock rose as much as 10 percent to Rs 181.
  • Trading volume was 3.2 times its 20-day average.

VIP Industries

  • Stock rose as much as 4.7 percent to Rs 440.
  • Trading volume was 2.6 times its 20-day average.

Adani Enterprises

  • Stock rose as much as 8.4 percent to Rs 128.20
  • Trading volume was 2.5 times its 20-day average.

Century Textiles Gains After Block Deal

Shares of the apparel manufacturer rose as much as 3.5 percent to Rs 936.80.

About 12.9 lakh shares changed hands in a block deal, according to Bloomberg data. Buyers and sellers were not known immediately.

Trading volume was 64 percent its 20-day average. The stock is 25 percent below the Bloomberg one-year consensus one-year price target.

Market Check: Sensex, Nifty At Day's High

  • Indian equity benchmarks extended gains for the second straight trading session.
  • The S&P BSE Sensex Index rose as much as 1.1 percent, the most in over two months to 35,628.49 and the NSE Nifty 50 Index rose as much as 1.3 percent to 10,818.
  • About 1,398 stocks advanced and 311 stocks declined on NSE.

Power Lunch: The First Rate Hike In Over 4 Years. What Are The Implications?

#AskBQ: Check The Strength Of Your Portfolio

#AskBQ is BloombergQuint’s daily offering where market experts help investors make the right investment choice in the equity market.

JSW Steel Surges To Record High

Shares of the Mumbai-based steel producer extended gains for the second straight day and rose as much as 2 percent at a high of Rs 344.8.

Trading volume was 64 percent of the 20-day average, Bloomberg data showed. The stock returned 27 percent so far this year, compared to 7.6 percent decline in NSE Nifty Metal Index.

Hot Money: Have Valuations Of Midcap IT Run Up? What Looks Attractive?

Sadbhav Infrastructure Gains After Fund Raising Plans

Shares of the Gujarat-based construction company extended gains for the second consecutive trading session and rose as much as 7.6 percent to Rs 127.80.

The company’s approved raising of fund up to Rs 3,000 crore via issue of securities, according to its stock exchange filing.

Trading volume of the stock was 3.3 times the 20-day average. The stock declined 17.7 percent so far this year and is 26 percent below its Bloomberg consensus one-year price target.

From Bloomberg: Banks Turn To Blockchain To Speed Up Indian Internal Trade Deals

Fourteen local banks signed up for the India Trade Connect consortium, which hired the Bengaluru-based information technology company – Infosys Ltd. to develop a blockchain platform for loans that back trade transactions within India, Bloomberg reported, quoting Abhijit Singh, head of technology at ICICI Bank Ltd., one of the consortium’s founders. (more details here).

Phillips Carbon Black Surges As Volumes Jump

Shares of the carbon-black manufacturer rose as much as 12.9 percent, the most in five months to Rs 246.

Trading volume was 11.1 times the 20-day average, according to Bloomberg data. The stock gained 22 percent so far this year compared to 3.9 percent advance in Sensex. Philips Carbon trades at 90.4 times trailing 12-month earnings per share.

Small-Cap Index Outperforms Nifty For Second Day

BQ Conversations: Morgan Stanley Investor Summit With Anil Agarwal

BQ Conversations: How To Invest... With Raamdeo Agrawal | Value Migration

Renowned stock picker Raamdeo Agrawal spoke to BloombergQuint on the second episode of the special two-part series explaining how to invest using 'value migration' - a concept by American consultant and author Adrian Slywotzky.

Videocon Industries Admitted For Insolvency Proceedings; Shares At All-Time Low

Shares of Videocon Industries Ltd. reached its daily lower limit and hit an all-time low, after the National Company Law Tribunal's Mumbai bench admitted the company under the Insolvency and Bankruptcy Code, according to two bankers who spoke to BloombergQuint on the condition of anonymity.

Mid And Small Caps Overvalued Despite Recent Correction: UBS

The small- and mid-cap stocks continue to be more expensive than their large cap peers, despite the recent correction, said Gautam Chhaochharia, head of India research at UBS Securities. "More than 60 percent of listed mid-cap and small-cap stocks down 20 percent from their peaks." (click here to read more).

Market Check: Sensex, Nifty Extend Gains, Led By Reliance Industries

  • Indian equity benchmarks extended rally, led by gains in Reliance Industries Ltd. and ICICI Bank Ltd.
  • The S&P BSE Sensex Index rose as much as 0.8 percent to 35,473.90 and the NSE NIfty 50 Index rose as much as 0.8 percent to 10,770.35.
  • About 1,349 stocks advanced and 280 shares declined on NSE.

The F&O Show: Bets To Take Ahead Of Bank Nifty Weekly Options Expiry

Nifty's 10,700 Put Option Most Active On NSE

IndianOpen: Brokerages On RBI, Electrosteel Steels' De-Listing Plans And More

Repro India Expects To Clock 12-15% In Operating Margins

Commercial printing services provider Repro India Ltd. expects its operating margins to touch 12-15 percent going forward, its Executive Director Pramod Khera told BloombergQuint in an interaction.

Key highlights from the conversation:

  • Digital revenues touched Rs 68 crore this year.
  • Books on demand currently are at Rs 7,500 per day.
  • Digital business is not contributing to bottomline as of now.
  • Have 4-5 million international titles as of now.
  • Shifting to larger space in Mumbai by the end of this month.
  • Mumbai expansion to lead to 12,000 books per day.
  • Existing capacity in Mumbai has to be enhanced.
  • Long-term debt is at around Rs 50 crore.
  • Have comfortable debt-to-equity at 0.65.

Ambit Capital Expects Private Banks With Strong CASA Levels To Lead Growth

Ambit Capital expects private which has strong CASA levels to lead the growth, its Head of Institutional Equities, Pramod Gubbi told BloombergQuint in an interaction.

Key highlights from the conversation:

  • Fiscal slippage generally happens in the election year.
  • MSP announcement later in the month will set the market tone.
  • Bullish on large cap consumption space.

Kwality Slides After Two Block Deals

Shares of the dairy products maker fell as much as 5.1 percent to Rs 31.65. The stock was trading at over a four-year low.

About 25.6 lakh shares or 1 percent equity changed hands in two block deals, Bloomberg data showed. The Relative Strength Index was 16, indicating that the stock may be oversold. The scrip declined 71.8 percent so far this year.

Bajaj Finance Surges To Record High

Shares of the non-banking finance company rose as much as 1.4 percent and hit an all-time high at Rs 2,190.

The stock trades at 64 times trailing 12-month earnings per share and 34 times its estimates for the coming year, Bloomberg data showed. The scrip returned 62.6 percent over the past year, compared to 14.6 percent advance in Sensex.

Future Retail Declines After Multiple Block Deals

Shares of retail chain operator fell as much as 3.6 percent to Rs 551.20.

About 29.8 lakh shares or 5.9 percent equity changed hands in five block deals, according to Bloomberg data. Buyers and sellers were not known immediately.

Trading volume was 6.6 times its 20-day average, Bloomberg data showed. The stock returned 8.4 percent so far this year and advanced 49 percent in the past 12 months.

Opening Bell: Sensex, Nifty Trade Higher In Open

Indian equity benchmarks rose for the second straight trading session following its Asian peers.

The S&P BSE Sensex Index rose as much as 0.8 percent to 35,444.90 and the NSE Nifty 50 Index rose as much as 0.8 percent to 10,763.35.

The market breadth was tilted in favour of buyers. All the 11 sectoral gauges compiled by NSE advanced, led by NSE Nifty Realty Index's 0.97 percent gain.

BQ Opinion: A Pre-Emptive Rate Hike, But Uncertainty Keeps Stance In Neutral

Belying the expectations of a majority of economists and analysts, the Monetary Policy Committee opted to hike the policy repo rate by 25 basis points to 6.25 percent in its June meet itself, rather than wait till August, writes Saugata Bhattacharya. (Click here to read more).

BQ Head-Up! Who's Buying, Who's Selling? ADRs Performance And Insider Trades

Money Market Cues: Bonds Seen Under Pressure After RBI Rate Hike

Bonds are seen under pressure after India's central bank raised interest rates for the first time in over four years on Wednesday and probably kept the door open for another hike.

The six-member Monetary Policy Committee voted unanimously to increase the repurchase rate to 6.25 percent from 6 percent on Wednesday, as predicted by 14 of 44 economists in a Bloomberg survey.

The RBI kept its policy stance neutral, which suggested the move was probably a “dovish hike,” according to economists at Nomura Holdings Inc. With this, the RBI has joined peers in Indonesia, Turkey and Argentina in raising rates as policy tightening in the U.S. and a stronger dollar rattle broader emerging markets. The 10-year bond yield rose eight basis points on Wednesday to end at 7.92 percent.

Meanwhile, the rupee is seen drawing strength from the central bank's decision to raise rates as well as improved risk appetite globally. The dollar was trading slightly weaker overseas which should see the rupee open higher after ending at 66.96 per dollar on Wednesday. The implied opening from forwards suggests spot will start trading on Thursday around 66.9203.

F&O Cues: Recap Of June Series So Far

  • Nifty June Futures closed trading at 10,686.2 premium of 1.6 points versus 3.3 points.
  • June series-Nifty open interest up 1 percent & Bank Nifty open interest up 2 percent.
  • India VIX ended 12.5, down 5.7 percent.
  • Max open interest for June series at 11,000 Call, open interest at 41.7 lakh, open interest down 9 percent.
  • Max open interest for June series at 10600 Put, open interest at 40.4 lakh, open interest up 18 percent.

F&O Ban

  • In ban: Dewan Housing, Balrampur Chini.
  • New in ban: Balrampur Chini.

Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty in case of a rollover of these intraday positions.

Put-Call Ratio

  • Nifty PCR at 1.39 versus 1.33.
  • Nifty Bank PCR at 0.69 versus 0.56.

Brokerage Radar: HUL, Hindalco Industries, Tata Power

Deutsche Bank on Tata Power

  • Maintained ‘Buy’; raised price target to Rs 106 from Rs 100.
  • Strategy changed to asset-light growth from asset heavy growth phase.
  • Unlikely to acquire new thermal stressed projects.
  • Looking to increase share of renewables to 40-50 percent from less than 30 percent at present.
  • Will continue to monetize non-core assets.

Goldman Sachs on Hindalco Industries

  • Maintained ‘Buy’ with a price target of Rs 290.
  • Focus on high-return, value-added products to cushion margins.
  • Adding downstream capacities to aid profitability, even in lower aluminium scenario.
  • Hindalco trading at discounts to global aluminium smelters/processors.
  • Concerns more than priced in, valuations compelling.

UBS on India Gas Utilities

  • Gas under GST will make the fuel more competitive and boost demand.
  • GAIL, GSPL and Petronet LNG to benefit from boost in gas demand.
  • Gas under GST means higher pricing power and stable gross margins for CGD.
  • Maintain Buy on GAIL and GSPL; Sell on Petronet LNG, MGL, IGL and GGL.

Brokerages on HUL

Credit Suisse

  • Maintained ‘Buy’; hiked price target to Rs 1,750 from Rs 1,675.
  • Digital and data analytics to add another long term competitive advantage.
  • Home care – from a slow growing category to the main growth driver.
  • Continues to invest for growth in core and new categories and trends.

Jefferies

  • Maintained ‘Buy’ with a price target of Rs 1,680.
  • Leveraging data analytics and digital to build a moat and maintain lead over peers.
  • Focus on strengthening the core and driving premiumisation.
  • Valuations remain rich limiting absolute upside; Co. remains among best placed.

Trading Tweaks: Mishra Dhatu Nigam, Hindustan Motors

  • Circuit Changes (5 to 20 percent): Mishra Dhatu Nigam, Phillips Carbon Black.
  • Circuit Changes (10 to 20 percent): DCW, Cimmco, TRF, Apollo Piples, Autoline Inds, Thangamayil Jewellery, Adlabs, FACT.
  • Hindustan Motors, Vimta Labs, Pioneer Distilleries, Indowind Energy, Mandahan Industries circuit filter revised to 10 percent from 5 percent.
  • Phillips Carbon Black, MIDHANI circuit filter revised to 20 percent from 5 percent.
  • Harrisons Malayalam, Cimmco, JMT Auto, Religare, Tree House, MT Educare circuit filter revised to 20 percent from 10 percent.
  • Action Construction Equipment and IVRCL placed under additional surveillance measure by BSE.
  • Lumax Auto Technologies ex date for stock split from Rs 10 to Rs 2.

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Bulk Deals: IEX, Rushil Décor

  • Rushil Décor: Elara India Opportunities Fund bought 75,000 shares or 0.5 percent equity at Rs 625 each.

IEX

  • Societe Generale sold 1.65 lakh shares or 0.5 percent equity at Rs 1590 each.
  • Morgan Stanley (France) S.A.S. sold 1.58 lakh shares or 0.5 percent equity at Rs 1590 each.

Stocks To Watch: Videocon, Hatsun Agro, Lemon Tree Hotels

  • McLeod Russel to sell some tea estates of the company in Assam to Luxmi Tea Company for Rs 141 crore.
  • Lemon Tree Hotels signs agreement for 104 room property in Madhya Pradesh.
  • Sadbhav Infra board approves raising of fund up to Rs 3,000 crore via issue of securities.
  • Bhansali Engineering Polymers resumes commercial production at plant in MP following fire incident.
  • C&C Constructions joint venture wins contract worth Rs 145 crore from the Government of Bihar.
  • Aksh Optifibre receives show cause notice from SEBI in relation to GDR issue.
  • NCLT admits Videocon Industries under Insolvency and Bankruptcy Code.
  • HCL Infosystems says deal with Apple India to distribute iPhone and other Apple products to end in March 2019.
  • Majesco gets contract for cloudinsurer platform product.
  • Hatsun Agro rights issue to open on June 14. Issue price fixed at Rs 555 per share.
  • Goldstone Infratech launches first full electric feeder bus – “eBuzz K6”, to be exported to Nepal.
  • Dollar industries receives approval from BSE to list 5.67 crore equity shares with effect from June.

Petrol Price Cut For Ninth Day In A Row

Petrol and diesel prices were cut by 9 paise and 8 paise respectively today. Petrol now costs Rs 85.45 in Mumbai and diesel costs Rs 73.17, according to the data available on Indian Oil Corporation Ltd.’s website.

Commodity Cues: Gold Rises, Oil Halts Losses

  • West Texas Intermediate crude rose 0.7 percent to $65.20 a barrel.
  • Brent crude traded flat at $75.36 a barrel.
  • Gold rose less than 0.05 percent to $1,296.79 an ounce.
  • LME copper rose 0.3 percent to $7,245.00 per metric tonne.
  • Aluminuim ended 1.5 percent higher at $2,351 per metric tonne.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, 0.4 percent higher at 10,732 as of 8:30 a.m.

A global stocks rally extended its run in Asia Thursday on confidence the global economic expansion remains in tact and on hopes a full-blown trade war will be averted. Equities in Japan, South Korea and Australia gained after the S&P 500 Index rose for a fourth consecutive day.

Here are some key events coming up this week:

  • On Thursday, Japanese Prime Minister Shinzo Abe meets with U.S. President Trump at the White House to discuss the planned U.S. summit with North Korea’s Kim Jong Un.
  • Also on Thursday, euro-zone GDP.
  • A Turkish rate decision is due on Thursday.
  • G-7 Leaders’ Summit starts in Quebec Friday through to June 9.
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