Sensex, Nifty Overcome Early Volatility To Log Gains Aided By RIL

India's stock benchmarks overcome early volatility and steered clear of any first hour decline that has become a feature over the last few session, to log gains. The surge in index heavyweight Reliance Industries, I.T. stocks, energy and oil and gas stocks aided the advance

The Sensex rose 0.79% to 55,818.11. The 30-stock gauge shed over 200 points to an intraday low of 55,135.11 before rebounding. Today 28 stocks rose and 22 fell.

The MidCap index underperformed its larger peers, closing little changed while the SmallCap gauge mirrored Sensex and Nifty. Fifteen of the 19 sectoral indices compiled by BSE Ltd. advanced, with Energy and Oil & Gas measures adding over 2%.

The market breadth was skewed in the favour of bulls. About 1,972 stocks rose, 1,334 fell and 138 remained unchanged.

• Yield on the 10-year bond rose 2bps to 7.43%. The bond yield rose to 7.44% during the session, 5bps away from a near three-year high.

Source: Bloomberg

Indian Rupee closed near day's low at 77.61.

• The currency fell 0.14% to 77.64, during the session.

• The Rupee has not consolidated gains or losses over two days over the last 12 days with the currency alternating between gains and losses in every session since May 19.

• Rupee slumped to a record low 77.80 on May 17.

Source: Bloomberg

European markets trade mixed after euro zone inflation rose to record high in May.

Source: Bloomberg

Shares of KNR Construction rose over 2%, before erasing gains in intraday trade. Anand Rathi upgraded the stock to 'buy' from 'hold' on Wednesday. The price target is reduced to Rs 334 from Rs 355, an implied return of 31.06%.

Anand Rathi

• Exception new order, the company's FY22 performance checks all boxes such as project execution, operating profitability, strong balance sheet.

• Near-term challenges appear to be fairly priced, while long-term potential remains intact despite a cautious FY23 guidance.

Source: Anand Rathi note

10-year bond yield rose 3bps to 7.44% during the session.

Source: Bloomberg

India's stock benchmarks rose, aided by gains in information technology, oil and gas and energy stocks. The markets were volatile for the first two hours before consolidating gains in last hour, so far in today's session.

The benchmarks have witnessed volatile trading recently, especially in the second half in each of past two sessions.

The Sensex rose 0.5% to 55,646.59. The Nifty advanced 0.33% to 16,576.75. Today 25 of Nifty 50 stocks rose, while 25 fell.

The broader indices underperformed their larger peers with S&P BSE MidCap losing 0.62% and S&P BSE SmallCap adding 0.2%. Ten of the 19 sectoral indices compiled by BSE Ltd. declined with Auto index losing 0.8%. On the flipside, Enery, I.T. and Oil & Gas indices rose above 1%.

The market breadth is skewed in the favour of bulls. About 1,798 stocks rose, 1,380 fell and 156 remained unchanged.

• Indian currency fell 0.14% to 77.64 against the dollar during the session before trimming the losses to 77.58.

Source: Bloomberg

Shares of Cipla rose over 2%, the most since Monday. The company announced commercial operation of additional capacity of captive renewable energy power plant in Maharashtra and Karnataka.

• Cipla had commissioned 30 Mega Watt peak solar project in Tuljapur in January 2021. It has now added 16 MWp of solar capacity to supply renewable energy for its manufacturing units in Maharashtra. The project will support the green energy needs of the company's manufacturing units at Kurkumb and Patalganga and R&D centre at Vikhroli in Maharashtra. The project will replace 70% of total energy consumption for these units with green energy.

• In Karnataka, a wind solar hybrid captive power plant with capacity of 9 MWp solar and 2.7 Mega Volt-Ampere (MVA) of wind has been commissioned. The project, commissioned in partnership with CleanMax Enviro Energy Solutions, will help in replacing 85% of power requirement to renewable source for the manufacturing units in the state.

• Cipla sourced 68,200 mWh fo renewable power for its India operations in FY2021-22. This is estimated to have led to reduction of 56,000 tonnes of carbon dioxide emissions. By 2025, Cipla plans to achieve carbon and water neutrality.

Trading volume on the stock was twice the 30-day average. The stock pared intraday gains while the NSE Nifty Pharma shed 0.4%.

• Credit Suisse reiterated 'outperform' on the stock and maintained target at Rs 1,100, an implied return of 11.84%. Of the 44 analysts tracking the company, 36 maintain 'buy', six recommend 'hold' and two suggest 'sell'. The return potential of the stock is 9.4%.

Source: Exchange filing, Bloomberg

Shares of Delhivery Ltd. rose nearly 6%.

• The rise comes after Credit Suisse initiated coverage of the stock with a recommendation of 'outperform'.

• The target price is set at Rs 675, an implied upside of 26.02%.

Source: Bloomberg

Shares of Reliance Industries rose nearly 3%, the most since Monday.

• The company's subsidiary Reliance Brands signed a joint venture arrangement with Plastic Legno SPA . Reliance Brands will acquire 40% stake in Plastic Legno's toy manufacturing business in India.

• Plastic Legno SPA, owned by the Sunino group has over 25 years of toy production experience in Europe. The group started its India business in 2009.

• Reliance Brands, for its part, is the distributor of Hamleys, the British toy retailer and Rowan, domestic toy brand. Hamleys has a global footprint in 15 countries and is India's large chain of toy stores.

• The uptick in RIL's share price also comes amid slide in crude oil prices following a report that Saudi Arabia was ready to pump more oil, if Russian output declined.

• Trading volume is 1.5 times the 30-day average. Of the 39 analysts tracking the company, 27 maintain 'buy', eight suggest 'hold' and four recommend 'sell'. The return potential of the stock is 5.8%.

Source: Exchange filing, Bloomberg

Shares of auto parts, power equipment and internal combustion engine maker Greaves Cotton climbed over 13.6%, the most in 20 weeks.

• The company approved an investment proposal worth $150 million for Greaves Electric Mobility Private, its EV arm, from Abdul Latif Jameel, an independent, family-owned investor. Both the parties have executed a share subscription agreement and shareholder agreement today for the investment for subscription of 68.35 lakh shares.

• Greaves Electric Mobility, incorporated in 2008, is engaged in development, manufacturing and marketing of fully assembled two-wheeler and electric three-wheeler for personal mobility, industrial applications. The company makes electric two-wheelers under the brand name of Ampere Vehicles and three-wheeler vehicles under the brands Ele (E-Auto) and Teja (E-Rickshaw). The company will use the proceeds from this investment to develop new products and transform into a global EV maker.

• Abdul Latif Jameel will gain 35.80% shareholding on a fully diluted basis.

• Greaves Electric Mobility will also have a right (but not an obligation) to require the investor to make further investments of upto $70 million by way of primary subscription within 12 months.

• The consummation of the investment is subject to regulatory approvals.

• Abdul Latif Jameel represents the Jameel Family, who is the third-largest shareholder of U.S. electric vehicle maker Rivian. The family also invests in U.S. aerospace firm Joby Aviation.

• Trading volume is more than 14 times the 30-day average volume. Share price crossed above the 50-day simple moving average, indicating potential upward price momentum. Of the seven analysts tracking the company, six maintain 'buy' and one suggests 'hold'. The return potential of the stock is 8.9%.

Source: Exchange filing, Bloomberg

Shares of Religare Enterprises rose over 10.5%, the most in over two weeks, to Rs 135 apiece.

• The uptick comes after the company said that its subsidiary Religare Finvest Ltd. received communication from lenders confirmed in-principle agreement for One-Time Settlement proposal.

• Trading volume is more than seven times the 30-day average.

Source: Exchange filing, Bloomberg

Shares of Hero MotoCorp Ltd. lose over 4.2%, the steepest decline in over two months since April 1.

• The decline comes a day after company reported YoY sales growth of 169% in May 2022.

• Hero MotoCorp has also deferred the launch of its first electric scooter to festive season due to supply chain constraints. The launch of electric scooter was originally planned for July.

• Trading volume is more than thrice the 30-day average. This week so far, JPMorgan, Credit Suisse and Nomura have reiterated their rating on the stock. Of the 49 analysts tracking the firm, 33 maintain 'buy', 11 recommend 'hold' and five suggest 'sell'. The return potential of the stock is 7.3%.

Source: Exchange filing, Bloomberg

India's stock benchmarks opened lower, dragged by losses in fmcg, power, banking and auto stocks. The slide comes amid comments by Jamie Dimon sounding alarm bells on the economy amid efforts by global central banks to rein in inflation.

The S&P BSE Sensex fell 0.33% to 55,200.91. The NSE Nifty 50 advanced by similar magnitude to 16,462.15.

The broader indices outperformed their larger peers. The S&P BSE MidCap fell 0.2% while SmallCap index rose 0.1%. Thirteen of the 19 sectoral indices compiled by BSE Ltd. decline with S&P BSE FMCG shedding over 1%.

The market breadth was skewed in the favour of bulls. About 1,244 stocks advanced, 952 declined and 108 remained unchanged.

• 10-year bond yield little changed. Yield on the 10-year bond added 1bp to 7.42% at the open.

Source: Bloomberg

• Indian currency fell 0.11% to 77.61 at the open.

Source: Bloomberg

Cipla has announced the commercial operation of additional capacity of captive renewable energy power plant in Maharashtra and Karnataka.

• Cipla had commissioned 30 Mega Watt peak solar project in Tuljapur in January 2021. It has now added 16 MWp of solar capacity to supply renewable energy for its manufacturing units in Maharashtra. The project will support the green energy needs of the company's manufacturing units at Kurkumb and Patalganga and R&D centre at Vikhroli in Maharashtra. The project will replace 70% of total energy consumption for these units with green energy.

• In Karnataka, a wind solar hybrid captive power plant with capacity of 9 MWp solar and 2.7 Mega Volt-Ampere (MVA) of wind has been commissioned. The project, commissioned in partnership with CleanMax Enviro Energy Solutions, will help in replacing 85% of power requirement to renewable source for the manufacturing units in the state.

• Cipla sourced 68,200 mWh fo renewable power for its India operations in FY2021-22. This is estimated to have led to reduction of 56,000 tonnes of carbon dioxide emissions. By 2025, Cipla plans to achieve carbon and water neutrality.

Source: Exchange Filing

• Yes Bank: The private lender is nearing a deal to sell a pool of Rs 48,000 crore in stressed assets to the US-based JC Flowers & Co.

• Reliance Industries: Reliance Brands and Plastic Legno SPA have signed a joint venture arrangement for toys manufacturing in India.

• Maruti Suzuki: Total sales increased to 1,61,413 units in May 2022 from 46,555 units a year ago.

• Vedanta: The company will consider raising Rs 4,100 crore through non-convertible debentures on June 4.

• Bata India: Bata (BN) B.V., The Netherlands, says the sale of its 2.8% stake in Bata India is part of an internal restructuring and that it still holds 50.1% in the Indian subsidiary.

• IndusInd Bank: The bank has reduced its stake in Birla Tyres from 7.498% to 3.869%.

• Religare Enterprises: Lenders to wholly owned subsidiary Religare Finvest have agreed to consider a one-time settlement plan as part of the company's revival plan.

• Welspun: The company’s Saudi Arabia’s arm East Pipes has signed a contract with Saline Water Conversion Corp. worth Rs 1,013.24 crore to supply and deliver steel pipes for a water transmission project.

• Delta Corp: Delta Pleasure Cruise Co. Pvt. Ltd. has commenced management of operations of the casino at Zuri White Sands Goa, Resort and Casino.

• Ashoka Buildcon: Ashoka Highways (Bhandara) has received Rs 97.37 crore -- inclusive of interest -- towards full and final settlement against claims and various other disputes under the concession agreement.

• Indian Bank: The lender has raised lending rates by 10-90 basis point across tenors after RBI's out-of-turn rate hike.

• Hero MotoCorp: Sales rose 169% year-on-year to 4,86,704 units in May 2022. India's largest two-wheeler maker has deferred the launch of its first electric scooter from July to the festive season due to supply chain constraints.

• Balaji Amines: The company has approved fundraising by subsidiary Balaji Speciality Chemicals via an initial public offering comprising a fresh issue of Rs 250 crore and/or an offer for sale “by certain existing and eligible shareholders”.

• Astron Paper & Board Mill: Search proceedings were carried out by the Income Tax Department under Section 132 of the Income Tax Act, 1961, at the head office of the company from May 26-29.

Stocks in Asia fell on Thursday amid efforts to rein in inflation even as JPMorgan Chase & Co.’s Jamie Dimon sounded alarm bells on the economy.

An MSCI Inc. gauge of Asia-Pacific shares fell for a second day, with equities in Hong Kong and Japan declining. US futures fluctuated after stocks dropped on Wall Street.

The Singapore-traded SGX Nifty, an early barometer of India's benchmark Nifty 50, fell 0.43% to 16,437 points as of 7:30 a.m.

The dollar was little changed. Crude oil declined on a report Saudi Arabia is ready to pump more oil if Russian output declines. OPEC+ is scheduled to meet to discuss supply policy.