Sensex, Nifty Snap 4-Session Losing Streak; RIL, ICICI Bank Lead Gainers

Indian stock market benchmarks snapped their four-session losing streak driven by gains in blue chips like Reliance Industries and ICICI Bank.

The NSE Nifty 50 index gained 0.28% to close above the 15,700 mark, while the S&P BSE Sensex rose 0.32% to close just shy of 52,500.

Two Nifty stocks, Dr. Reddy's Laboratories and Divi's Labs, hit 52-week highs in the session. Metal stocks including Tata Steel, JSW Steel and Hindalco were among the top Nifty losers. The market breadth was tilted in favour of the gainers, with 26 of the 50 stocks rising.

The Sensex and Nifty fell 0.9% each this week, the biggest decline since the week ended May 16.

Reliance Industries gained momentum through the trading day and is now set to close with the biggest single-day gain in nearly a month.

The Mukesh Ambani-led company emerged as Friday's top Sensex gainer, with a 1.5% rise. The banking pack clocked handy gains, with Axis Bank, State Bank of India and ICICI Bank gaining between 0.4% and 1.4%.

Granules India stock rose for the sixth consecutive session, and is now on track for its longest winning streak since February 2020. On Friday, the shares rose as much as 3.5% to Rs 345 apiece.

Oberoi Realty shares rose as much as 2.7% to Rs 652.5 apiece, extending its winning streak to six straight sessions -- the longest stretch of gains since June 2020. Oberoi Realty has gained 7.1% during the streak compared with the Sensex's 0.7% fall.

Zee Media Corp. surged 6.9% to Rs 13.3 apiece, it's biggest intraday gain in nearly two months. The stock has clocked gains for six days in a row, and is on track to post its longest winning streak since June 2020.

Marico’s India business delivered 30% plus revenue growth, backed by a robust double-digit volume growth in the April-June period, the company said in an exchange filing.

Here's are the other highlights from Marico's quarterly update:

• The International business posted constant currency growth in the low 20’s.

• Key input costs started easing after peaking at the start of this quarter.

• Operating margin in the quarter will drop sharply on a year-on-year basis, due to exceptionally high base.

• Marico expects muted bottom line growth as operating margin was impacted in April-June.

• Seeing improving demand trends, as the second wave appears to be receding

Adani Ports & SEZ emerged as the top gainer in the Nifty as Nomura raised its target price on the stock to Rs 890 from Rs 860, implying a potential upside of 26%.

The research firm said Adani Ports' stock price is currently attractive as it has declined over 15% from June 11 to June 30 after adverse media reports regarding the freezing of the accounts of three foreign funds which together owned over Rs 43,500 crore worth of shares in four Adani Group companies.

Read Nomura's rationale here.

The Indian rupee is headed for a fifth weekly decline in its longest losing streak in more than seven months.

The currency dropped 0.26% to 74.75 versus the dollar on Friday. Global dollar strength and higher crude prices are the factors hurting sentiment about the Indian currency, according to Bloomberg.

So far this week, all Asian currencies have posted losses against the greenback.

Indian IT firms are well-positioned to deliver 17% dollar revenue growth in FY22 followed by 10% CAGR in FY23-24, according to Jefferies. However, the research firm expects wage pressure and post-Covid cost normalisation to drive margins and earnings growth lower.

Key takeaways from the report:

• Limited scope for re-rating but view Infosys and HCL Technologies favourably given growth leadership and valuation comfort, respectively. Maintain ‘buy’ on both, with price targets implying a potential upside of 12% and 20% on Infosys and HCL Tech respectively.

• Downgrade Tech Mahindra and TCS to ‘hold’ due to expected margin/earnings disappointments and limited scope for re-rating. Price targets imply an upside of 10% and 7% respectively.

• Maintain ‘underperform’ rating on Wipro as it has the lowest earnings-per-share growth in Jefferies' coverage and rich valuations. Set a target price of Rs 470, implying a potential downside of 13%.

Adani Ports & SEZ emerged as the top gainer in the Nifty index, rising as much as 2.5%. The stock snapped a three-day losing streak on Friday.

However, other stocks in the conglomerate run by Asia's second richest man Gautam Adani posted steep losses. Adani Green Energy, Adani Total Gas, and Adani Transmission were locked in the 5% lower circuit, while Adani Power dropped over 4%.

Happiest Minds Technologies shares rallied as much as 9.7%. Trading volume was 11 times the average for this time of day, according to Bloomberg. The stock extended its winning streak to seven sessions.

Linde India shares jumped as much as 5% to the highest level in more than 7 weeks. The stock is now on a three-day winning streak. Shares of the Kolkata-based oxygen manufacturer has rallied nearly 80% so far in 2021.

JB Chemicals & Pharmaceuticals stock rose as much as 5.9%. Trading volume was five times the average for this time of day, according to Bloomberg.

Infosys contributed the most to the Nifty's decline, decreasing 0.7%. Tata Consultancy Services had the largest drop, falling 1%.

Adani Ports & SEZ and Indian Oil Corp. were the top gainers in early trading. 22 of 50 Nifty stocks fell, as of 9:30 a.m.

Indian stock markets opened flat, in line with cues from Asian peers.

The NSE Nifty 50 index opened largely unchanged around the 15,700 mark, while the S&P BSE Sensex index traded around the 52,200 level. Automotive and energy stocks were the top gainers at opening bell with Hero Moto and Oil & Natural Gas Corp. leading the charge. Metal stocks like JSW Steel and Tata Steel, and information technology majors Infosys and Tata Steel were the top losers in early trade.

The market breadth was skewed in favour of gainers, with over 1,200 stocks advancing versus 500 declining, as per data available on the NSE.

Good morning!

Asian stocks were mixed on Friday as traders weighed a rally in U.S. shares to a record and positive Covid-19 vaccine developments against the regional spread of the delta virus strain.

Shares rose in Japan but slid in China and Hong Kong. S&P 500 contracts were stable after the index posted its longest winning streak since February.

Crude traded above $75 a barrel after the OPEC+ alliance descended into infighting, casting doubt on an agreement that could ease a surge in prices.

The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, was little changed at 15,737 as of 8:15 a.m.

Real estate stocks will be in focus in India, as Chris Wood said Greed & Fear's new long-only India portfolio will give significant weightage to property stocks. "India is at the start of a new housing cycle after a seven-year downturn," wrote Woods in his July 1 report. Godrej Properties Ltd., Century Textiles Ltd. and DLF Ltd. are the three real estate scrips in the 16-stock India long-only portfolio. Meanwhile, home sales in Mumbai rebounded in June as the second wave of the pandemic waned and Maharashtra eased restrictions, according to data shared on Thursday by Knight Frank India Research.