Nifty Ends At Two-Week High As Metals Shine

Indian equity benchmarks ended higher for second day in a row driven by a rally in metal stocks.

The S&P BSE Sensex rose as much as 0.40 percent to 39,592 and the NSE Nifty 50 gained 0.43 percent to 11,847.55. The broader market index represented by the NSE Nifty 500 Index gained 0.52 percent.

Level of 11,845 is the recent consolidation high and as that hurdle is breached Nifty is expected to head towards 12,000 levels, according to Ruchit Jain, a technical analyst at Angel Broking. “Traders holding long in the market may continue holding the position and those creating fresh longs must keep a stop loss of 11,775 and expect targets of 12,000 very soon.” Jain said in an interaction to BloombergQuint.

The market breadth was tilted in favour of buyers. About 1,039 stocks advanced and 697 shares declined on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Metal Index’s 2.73 percent gain. On the flipside, the NSE Nifty IT Index was the top sectoral loser, down 0.10 percent.

SBI Life Insurance Co. Ltd. gained as much as 10.3 percent, its biggest-ever intraday gain, to Rs 744 a share. Its offer for sale opened to retail investors today.

The SBI Life stock traded 10 percent below Bloomberg consensus one-year target price.

Indian equity benchmarks traded higher paced by gains in private lenders such as Yes Bank and HDFC Bank.

The S&P BSE Sensex rose as much as 0.40 percent to 39,590.80 and the NSE Nifty 50 gained 0.43 percent to 11,845.45. The broader market index represented by the NSE Nifty 500 Index gained 0.51 percent.

Nine out of 11 sectoral gauges compiled by National Stock Exchange gained, led by 2.57 advance in Nifty Metal Index.

External Affairs Minister S Jaishankar said he is “very optimistic” on where the India-U.S. trade relationship will head, in a joint press briefing in New Delhi along with U.S. Secretary of State Mike Pompeo. Here are the key highlights on what Jaishankar said.

• Need constructive & pragmatic approach toward trade issues.
• Real test of our intentions will be our ability to address trade issues.
• India committed to easier rules for U.S. companies to do business.
• Expressed India's appreciation for strong support from the Trump administration on that front.
• Discussed situation in the Gulf with Pompeo.
• Stressed the need for energy predictability, stability.

Catch live updates on the briefing here.

Shares of the Anil Ambani-led company rose nearly 25 percent to Rs 64.90 apiece.

A consortium of Reliance Infrastructure Ltd. and Italy’s Astaldi S.p.A. has finally received permission to start work on the Bandra-Versova sea link in Mumbai—the second leg of a 20-kilometre coastal road from Malabar Hill in south to Versova in the north.

The trading volumes was more than thrice the 20-day average for this time of the day, according to Bloomberg data.

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Shares of the biscuit maker traded 1.8 percent lower at Rs 2,755 apiece after paring day’s losses. The stock fell 3.8 percent intraday.

The FMCG company referred to developments about its Managing Director Varun Berry resigning as incorrect and baseless in an exchange notification.

The trading volume was more than five times the 20-day average for this time of the day, according to Bloomberg data.

Shares of the agriculture chemicals manufacturer rose as much as 2.1 percent to Rs 954.70.

The Nifty company acquired 7.32 percent stake in New Delhi-based company All Fresh Supply, according to Bloomberg.

The stock advanced 49 percent in the past 12 months compared to 11 percent in Sensex. The stock traded at 15 times its estimated earnings per share for the coming year.

Indian equity benchmarks traded higher even as automakers were the top losers in today’s trade.

The S&P BSE Sensex rose as much as 0.20 percents to 39,512.50 and the NSE Nifty 50 gained 0.22 percent to 11,822. The broader market index represented by the NSE Nifty 500 Index gained 0.31 percent.

Auto stocks such as Hero Motocorp, Tata Motors and Maruti Suzuki were among the top losers on the Nifty Index. The market breadth was in favour of buyers.

Shares of Confidence Petroleum India snapped its three-day fall and rose as much as 2.4 percent to Rs 35.85.

The LPG cylinder maker allotted 10.96 lakh convertible warrants to its promoter Gaspoint Petroleum, according to its exchange filing. The warrants carried an option to subscribe a share at a premium of Rs 51 per share for every warrant held within 18 months from the date of allotment, the filing said.

The stock made its market debut on June 13 and has fallen over 9 percent till date.

A Nifty Index rally beyond the 12,000 mark is " materially challenging" in the coming weeks due to the macro concerns in the current business environment. That’s according to Amit Khurana, head of equities and research at Dolat Capital Market

Khurana, in an interaction with BloombergQuint, also recommended private lenders and State Bank of India as his preferred bet at current levels. Also, Dolat Capital is bullish on small-cap and mid-cap stocks in the chemicals space and consumer discretionary companies such as Voltas in the medium-term horizon.

Indian equity benchmarks held gains after reversing opening losses as pharma stocks such as Sun Pharmaceuticals, Cipla and Dr. Reddy’s Laboratories were among the top gainers.

The S&P BSE Sensex rose as much as 0.20 percents to 39,511.50 and the NSE Nifty 50 gained 0.18 percent to 11,818. The broader market index represented by the NSE Nifty 500 Index gained 0.31 percent.

Nifty Pharma Index was the top sectoral gainer among the 11 sector gauges compiled National Stock Exchange.

Shares of the Tata-Group company extended gains for the fifth straight session after it rose 3.5 percent intraday to Rs 164.30 apiece.

The trading volume was over seven times its 20-day average for this time of the day, Bloomberg data showed. The stock has advanced 12.2 percent in the past five sessions.

Shares of the oil retailers declined as Brent crude prices extended rally for the second straight session after gaining 1.6 percent to $66.12 per barrel, its highest this month.

Shares of the financial services company declined for the fourth-straight session after it fell 5.4 percent intraday to Rs 158.30 apiece.

Credit rating firm ICRA downgraded its long-term rating to AA- from AA, according to its exchange notification. The downgrade was on account of vulnerability in wholesale lending, the filing said.

The stock traded 13 times its estimated earnings per share for the coming year, according to Bloomberg data.

Shares of the media company rose 10.7 percent, the most in nearly a year, to Rs 285.90 each.

HDFC Mutual Fund increased stake to 7.14 percent from 5 percent after acquiring an additional 2.14 percent from open market on June 24, according to BSE data.

The trading volume 12 times the 20-day average for this time of the day, according to Bloomberg data, The stock traded 30 percent below the Bloomberg one-year target price.

Shares of the non-banking lender fell as much as 9 percent to Rs 68.60 apiece.

The Company has made proportionate payment of 40 percent, that is, Rs.150 crore towards maturity of the commercial papers of aggregate value of Rs 375 crore, according to its exchange filing. The balance of Rs 225 crore will be paid once the surplus cash flow position of the company improves over the next couple of days, the filing said. The default has occurred on the gross principal of Rs 225 crore.

The stock has fallen 89 percent in the past 12 months compared with a 11 percent gain in the Nifty Index.

Indian equity benchmarks fell in the opening trade, driven by losses in oil retailers and Indiabulls Housing Finance.

The S&P BSE Sensex fell as much as 0.15 percent or 65 points to 39,381.60 and the NSE Nifty 50 fell as much as 0.11 percent to 11,783.65. The broader market index represented by the NSE Nifty 500 Index traded flat.

However, the market breadth was tilted in favour of buyers. About 743 stocks advanced and 712 shares declined on National Stock Exchange.

Seven out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Pharma Index’s 0.38 percent gain. On the flipside, the NSE Nifty IT Index was the top sectoral loser, down 0.38 percent.

The Indian rupee opened lower against the U.S. dollar. The home currency weakened as much as 0.1 percent to 69.41 against the greenback.

Futures

• Nifty June futures closed at 11,810, premium of 13.9 points versus 18 points.
• Nifty futures across series open interest up 0.6 percent, adds 1.3 lakh shares in open interest.
• Bank Nifty June futures closed at 30,878.6, premium of 31.6 points versus 29 points.
• Bank Nifty futures across series open interest up 6.6 percent, adds 1.4 lakh shares in open interest.
• Nifty Rollover 40 percent, Bank Nifty Rollover 37 percent.

Options

• Nifty PCR at 1.51 versus 1.30 (across all series).

Nifty Monthly Expiry June 27

• Max open interest on call side at 12,000 (34.8 lakh shares).
• Max open interest on put side at 11,700 (40.2 lakh shares).
• Open interest addition seen at 11,700P (+11.6 lakh shares), 11,750P (+7 lakh shares).
• Open interest shedding seen at 11,800C (-9.7 lakh shares), 11,900C (-6.3 lakh shares).

Stocks In Ban

In Ban:

• Adani Power
• IDBI Bank
• Jet Airways
• Reliance Capital

Out Of Ban:

• Reliance Infra

ICICI Lombard GIC Limited

• Societe Generale buys 29.69 lakh shares (0.7 percent) at Rs 1,100 each.
• Red Bloom Investment Ltd sold 1.43 crore shares (3.2 percent) at Rs 1,100.19 each.

Aptech Limited

• Washington University sold 5.30 lakh shares (1.3 percent) at Rs 137.5 each.

Cox & Kings Limited

• Ifci Ltd. sold 10.80 lakh shares (0.6 percent) at Rs 50.56 each.

PC Jeweller Ltd

• Carlina Ltd sold 41.20 lakh shares (1 percent) at Rs 48.69 each.
• Idria Limited sold 40.8 lakh shares (1 percent) at Rs 48.68 each.

Reliance Power Limited

• Yes Bank Ltd sold 5.29 crore shares (1.9 percent) at Rs 4.14 each.

Supershakti Metaliks Ltd

• Aviator Emerging Market Fund buys 1.59 lakh shares (2.8 percent) at Rs 407 each.
• Asia Investment Corporation Mauritius Limited sold 1.60 lakh shares (2.8 percent) at Rs 407 each.

• SBI Life Insurance offer-for-sale opens for retail investors; sale to non-retail investors got 3.81 times demand Tuesday.
• L&T Technology's offer-for-sale opens for retail investors; sale to non-retail investors got 5.41 times demand Tuesday.
• IndiaMart InterMesh IPO: Fully subscribed on the second day of sale; got 1.3 times demand and the offer closes today.

• Reliance Power: ICRA downgraded the long-term and short-term ratings of Sasan Power (100 percent subsidiary of the company) to ICRA ‘BB+’ and ICRA ‘A4’ from ICRA ‘BBB’ and ICRA ‘A2’ respectively. Outlook changed to negative from stable. ICRA downgraded rating due to deterioration in financial risk profile of Reliance Power Group and the uncertainty regarding regulatory approval of tariff matters relating to change in law during construction and forex variation. The company disagrees with the revised ratings.
• Confidence Petroleum: Allotted 10,96,153 convertible warrants to M/s Gaspoint Petroleum (Promoter group), carrying an option to subscribe a share at a premium of Rs.51 per share for every warrant held within 18 months from the date of allotment.
• GVK Power: GVK Deoli Kota Expressway Private Limited, a step-down subsidiary of GVK issued notice of termination to NHAI on account of material breach and defaults on the part of NHAI.
• Transpek: Company to gradually start operations in Gujarat factory and production shall be ramped up to capacity in coming 7-10 days as the closure letter received from Gujarat Pollution Control Board has been revoked.
• NTPC: Wins 40 MW of Solar capacities in UPNEDA’S 500 MW Tender. Wins bid at Rs.3.02/KWH levelized tariff. The projects shall be set up by NTPC under EPC mode and shall add to the installed capacity of NTPC.
• Godrej Properties: Company plans to raise $300 million via QIP at a price range of Rs 912-928. The committee to consider and approve the issue price on June 28.
• Punjab & Sind Bank: Basel-III compliant Tier-II Bonds aggregating up to Rs 500 crore (Base Issue Size of Rs.200 crore with a Green Shoe Option of Rs 300 crore) was opened for bidding on June 25. The issue was subscribed and bids for Rs 237.30 crore with coupon of 9.50 percent were accepted.
• DHFL: The Company has made proportionate payment of 40 percent i.e Rs.150 crore towards maturity of the commercial papers of aggregate value of Rs 375 crore and the balance of Rs 225 crore will be paid once the surplus cash flow position improves over the next couple of days. The default has occurred on the gross principal of Rs 225 crore.
• Healthcare Global Enterprises Ltd: Company to raise Rs 20 crore by issuing 7,10,526 equity shares on preferential basis at Rs 285 each (71 percent premium to CMP).
• Bandhan Bank: Shareholder’s meeting for considering and approving amalgamation of GRUH Finance Limited with Bandhan Bank to be held on July 30.
• IFCI: Seeks to sell non-core assets and investments.
• Adani Power: Consortium of lenders, led by Axis Bank has approved the resolution plan to acquire controlling stake and restructure debt of GMR Chhattisgarh Energy Ltd. Adani Power shall hold 100 percent equity stake of which 52.38 percent stake is to be acquired from lenders and 47.62 percent is from GMR Group.
• Reliance Capital: Brickwork Ratings downgraded long-term debt programme and market linked debenture’s rating to BBB from A. Short-term debt programme has been downgraded to A3 from A2+.
• TV Today Network: HDFC MF increased stake to 7.14 percent from 5 percent after acquiring an additional 2.14 percent from open market on June 24.
• Asian Paints: LIC sold 2 percent stake in Asian Paints, reducing its stake to 3 percent in total.
• Emami: Diwakar Viniyog (promoter group) sold 2 percent stake in company on June 24 via open market, current holding stands at 10.9 percent. Suntrack Commerce (promoter group) sold 2 percent stake in company on June 24 via open market, holding stands at 10.8 percent.

• Brent crude traded 1 percent up to $65.79 per barrel.
• West Texas Intermediate crude rose 1.9 percent to $58.90 a barrel.
• Gold fell 0.4 percent to $1,418.18 an ounce.

London Metal Exchange

• Copper closed higher, up 1.38 percent.
• Nickel ended higher for the second day, up 1.32 percent.
• Zinc rose for the second session in a row, 2.09 percent higher.
• Tin ended 0.13 percent lower.
• Aluminium ended higher for the second day, up 1.17 percent.
• Lead closed 1.39 percent higher.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.15 percent to 11,774 as of 7:55 a.m.

Asian stocks were mostly lower on Wednesday following a sell-off on Wall Street as investor optimism cooled with regard to the Federal Reserve being on the brink of lowering interest rates and the U.S.-China trade talks getting back on track.

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