Nifty Halts  7-Day Rally; Sensex Ends  220 Points Away From Record High
The Bombay Stock Exchange (BSE) building, background right, looms over a no-entry street sign in Mumbai, India. (Photographer: Vivek Prakash/Bloomberg)

Nifty Halts 7-Day Rally; Sensex Ends 220 Points Away From Record High

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Closing Bell

The S&P BSE Sensex fluctuated between gains and losses to finally end unchanged at 51,934.88, just 220 points away from its record February closing. The NSE Nifty 50 Index also closed little changed at 15,574.85, around 8 points below its record close set on Monday.

Eleven of the 19 sector sub-indices compiled by BSE Ltd. declined, led by a gauge of metal companies.

Nifty Halts  7-Day Rally; Sensex Ends  220 Points Away From Record High

Also read: Why ValueQuest’s Ravi Dharamshi Is Bullish On Indian Markets

Adani Ports, Bajaj Auto, ONGC in Focus: Options Watch

  • ONGC options volume 2.7x the 20-day average, with 25,868 calls changing hands vs 4,640 puts
    • Stock up 3.9%, volume 1.6x the 20-day average for this time of day
  • Bajaj Auto options volume 2.2x the average, with 16,908 calls vs 4,144 puts
    • Stock up 1.2%, volume 2.1x the average
  • Adani Ports options volume 2x the average, with 42,664 calls vs 10,221 puts
    • Stock up 3.9%, volume 1.2x the average
  • Bajaj Finance options volume 1.7x the average, with 84,420 calls vs 24,463 puts
    • Stock up 2.9%, volume 1.1x the average
  • Reliance Industries options volume 1.5x the average, with 210,390 calls vs 77,631 puts
    • Stock up 0.7%, volume 1.3x the average

Mindtree Set For Longest Win Streak in 5.5 Years

Mindtree Ltd. is higher for the ninth straight day, on track for the longest winning streak since the period ended Sept. 24, 2015.

  • Low Price Target vs Comps: Consensus price target is 13.1% lower than the current stock price, vs 6.2% higher for comparable companies
  • High RSI: Relative strength index at 75; stock may be overbought
  • High Relative Valuation vs History: Stock is trading at an unusually high 29% premium versus peers compared to an average 8% premium over the past two years on a blended forward price-to-earnings basis.

Also read: India's Maturing Internet Firms To Drive Equity Share In Fundraising, Says Jefferies

Defense Stocks Rise On Initiative To Produce Locally

India’s defense equipment manufacturers rise after the government’s decision to include 108 items -- such as certain complex systems, sensors, simulators, weapons and ammunition -- to be procured from local companies.

  • Shares of Hindustan Aeronautics Ltd. rose as much as 4.8%, before paring gains to 1% in Mumbai
  • Larsen & Toubro Ltd. trades 0.7% higher; Bharat Electronics Ltd.+1.3%; Astra Microwave Products Ltd. +1.3%

The list of 108 items, builds on 101 other items, for which a similar announcement was made last year, and production will take place in a phased manner over 2021-2025, Citi Analyst Atul Tiwari wrote in a note.

  • “This continues to underline government’s focus on promoting domestic defense production,” the note says
  • “This continues to underline government’s focus on promoting domestic defense production,” the note says
  • The decision is a long-term structural trend even though development has been slow due to funding constraints and complicated procedures for defense procurement
  • Note said concrete steps such as banning imports of items that can be manufactured domestically, along with more proactive decisions to award orders, may give a much-needed boost to domestic manufacturing
  • Citi sees Bharat Electronics and L&T as benefiting the most from this decision

Tata Motors Car Sales Fall 40% Over April

Tata Motors Ltd.’s passenger vehicle division sold 15,181 units in May, the company said in a statement.

Passenger vehicle sales fell 40% over last month. Year-on-year the domestic sales are not comparable because of covid led lockdown last year.

  • Overall Tata Motors’ domestic sales fell 38% to 24,552 units in May from 39,530 units it sold in April.
  • Total domestic commercial vehicle sales fell to 11,401 units in May, compared to 16,644 units in April.
  • Commercial vehicle export too fell 8% to 2,030 units.

Catch the latest auto sales figures here

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