Sensex, Nifty Close Lower As RIL, IT Stocks Drag; Metals, Pharma Outperform
Catch all live updates on share prices, index moves, corporate announcements and more from Indian stock markets today.
Finance Minister To Announce Relief Measures
Closing Bell
India shares took a breather after the benchmark surged to a record last week, as investors await a slew of economic indicators to gauge the pace of the economic recovery.
The S&P BSE Sensex declined 0.36% to 52,735.59 while the NSE Nifty 50 Index fell 0.29% to 15,814.70. Reliance Industries fell 0.9% to contribute the most to the Sensex’s drop. The index heavyweight has now fallen for the fifth day, its longest streak of declines since March 18. Tata Consultancy and HDFC Bank were also among prominent decliners, falling 1.3% and about 0.4%, respectively.
Ten of the 19 sector sub-indexes compiled by BSE Ltd. declined, led by a gauge of energy companies.
Investors are awaiting economic indicators later this week that should show strong improvement following the reopening of business activity in states across India, Binod Modi, head of strategy at Reliance Securities wrote in a note. Among releases scheduled are the performance of key industries, the government’s fiscal deficit, and manufacturing PMI.
ISGEC Heavy Jumps After Reporting Nearly Fivefold Profit Growth
ISGEC Heavy Engineering surges after the Maharashtra-based company reported nearly fivefold growth in quarterly net income, helped by performance of its machinery making business.
Shares rise as much as 16.3%; most since Nov. 9
Best performer on India’s S&P BSE Industrials Index; trading vol. >9.5x
Co.’s net income for the March quarter rose to Rs 63.42 crore from Rs 13.19 crore y/y, while Q4 revenue was up 4.5% y/y to Rs 1620 crore, according to its earnings statement released today
Revenue from machinery and equipment business, which includes manufacturing of boiler tubes & panels, castings and containers, was up 57% y/y to Rs 550 crore
Shares have gained ~105%
Escorts Shares Gain After Raising Tractor Prices
Shares of the tractor maker rose after it announced a price hike effective July 1.
"There has been a steady rise in commodity prices necessitating a price hike to offset the impact of the continuing inflation. The increase in prices would vary across models and variants," Escorts said in a statement on the exchanges.
The company did not disclose the quantum of the price hikes.
Escorts Agri Machinery Segment (EAM) in May 2021 sold 6,423 tractors against 6,594 tractors sold in May 2020, a decline of 2.6%.
Sequentially, Escorts' total tractor sales declined 2.37% in May 2021 compared with 6,979 tractors sold April 2021. The company's domestic tractor sales declined 4.59% in May 2021 to 6,158 tractors as against 6,454 tractors in May 2020.
Market Update: Sensex, Nifty Remain Lower
Indian equity benchmarks continued to trade in the red, paring their early morning gains.
The S&P BSE Sensex was down 0.18% at 52,831.42, while NSE Nifty 50 Index was trading 0.09% lower at 15,845.60.
The broader market outperformed their larger peers. The S&P BSE MidCap and S&P BSE SmallCap both advanced 0.57%. Six of the 19 sector sub-indices compiled by BSE Ltd. declined. The S&P BSE Metal was the best performer, up 1.44%.
The market breadth was skewed in favour of the bulls. About 1,866 stocks gained, 1,340 declined and 169 remained unchanged.
Nalco Gains Ahead Of Results
National Aluminium Co. Ltd. surges most in more than a month ahead of its scheduled announcement of earnings for the three months ended March later today.
The state-run aluminum maker is expected to report parent sales of Rs 2,610 crore for the quarter, a YoY increase of 35%, according to the average analyst estimate compiled by Bloomberg.
Shares rise as much as 9.5%, most since May 7; set for 2nd day of gains; trading vol. > 3x 3-mo., full-day avg
Q4 net income adj. parent est. Rs 305 crore (range Rs 268 crore-Rs 353 crore, 3 analysts) versus Rs 103 crore year earlier: Bloomberg data
Thyrocare Falls Most Since March 2020 On Discount Stake Sale
India’s Thyrocare Technologies Ltd. dropped as much as 8.8%, on course for its biggest decline in over 15 months, after API Holdings Pvt.’s PharmEasy acquired a 66.1% stake in the company at a discount.
API will make an open offer for another 26% in Thyrocare
“Short-term investors should book profits rather than applying for the open offer. Long-term investors should remain invested and wait for fresh buying opportunities,” Yash Gupta, a research associate at Mumbai-based Angel Broking Ltd., wrote in a note
Gupta expects the acquisition to help elevate Thyrocare’s low-price high-volume business; expects the stock to perform well upon completion of the open offer
Power Mech Jumps On Coal India Contract
Power Mech Projects Ltd. has won a contract, valued Rs 9,294 crore ($1.3 billion) over 25 years, from Coal India Ltd.’s unit Central Coalfields Ltd., according to a stock exchange filing.
The duration of the contract is 25 years, including a two-year development period
Power Mech owns 74% in the consortium that has won the contract
The company’s shares jumped as much as 14.8% to their highest intraday level since February last year
Indraprastha Gas Gains Most In Three Months
Shares of Indraprastha Gas Ltd. rose as much as 5.20%, the most in over three months even as the company missed estimates but reported healthy volume recovery.
Brokerages Nomura, YES Securities, Nirmal Bang and Prabhudas Lilladher all maintained their bullish ratings on the stock, while CLSA upgraded its rating from 'outperform' to 'buy' and also hiked its target price.
"With the second wave receding, demand is recovering. Post-pandemic, the CNG demand outlook is better. Volume outlook remains good for domestic PNG and industrial & commercial segment (increased curbs on polluting fuels, recovery of commercial demand post pandemic," Nomura said in its note.
Shares of the city gas distributor rose to as much as Rs 539.20. Of the 36 analysts tracking the stock, 26 have a ‘buy’ rating, five suggest a ‘hold’ and five recommend a ‘sell’, according to Bloomberg data. The average of 12-month consensus price targets implies a downside of 7.2%.
To read the brokerages had to say about IGL, click here
New Listing Alert
Finolex Industries Jumps To Record
Finolex Industries climbs to highest since its debut on Jan. 1991 after fourth-quarter net income and revenue advance from year ago.
Best performer on S&P BSE 250 SmallCap, S&P BSE 500, NSE Nifty 500 indexes
Extends gain to second day
Shares rises as much as 14%
Trading volume >4.8x three-month full-day average
Q4 Snapshot
Net income Rs 297 crore vs. Rs 55.71 crore rupees YoY
Revenue Rs 1,250 crore, +63% YoY
Total costs Rs 861 crore, +25% YoY
Max Ventures Surges After Large Trade
Max Ventures jumps in pre-market trading in Mumbai after about 10% of equity (or 14.7 million shares) changes hands on NSE, according to data compiled by Bloomberg.
Buyers, sellers not immediately known
Opening Bell: Sensex, Nifty Climb Amid Steady Asia Trade
India stocks little changed ahead of a slew of economic indicators later this week, after the benchmark stock gauge ended last week at a record.
The S&P BSE Sensex was little changed at 52,904.52, less than 30 points off its peak. The NSE Nifty 50 Index was also flat. Ten of the 19 sector sub-indices compiled by BSE Ltd. declined, led by a gauge of power companies.
Investors are waiting to see economic indicators later this week that should show strong improvement following the reopening of business activity in states across India, Binod Modi, head of strategy at Reliance Securities wrote in a note.
Among releases scheduled later this week are the performance of key industries, the government’s fiscal deficit, and manufacturing PMI.
India’s daily caseload of virus infections has been declining for the past few weeks, while the pace of vaccinations has remained steady. The country added 46,148 new virus cases in a day through Monday morning, compared with more than 100,000 daily cases at the start of the month.
India Shifts 50,000 Troops to China Border in Historic Move
India has redirected at least 50,000 additional troops to its border with China in a historic shift toward an offensive military posture against the world’s second-biggest economy.
Although the two countries battled in the Himalayas in 1962, India’s strategic focus has primarily been Pakistan since the British left the subcontinent, with the long-time rivals fighting three wars over the disputed region of Kashmir. Yet since the deadliest India-China fighting in decades last year, Prime Minister Narendra Modi’s administration has sought to ease tensions with Islamabad and concentrate primarily on countering Beijing.
Read the full report here.
Rupee Bonds May Open Lower on Crude, UST Yield Rise
Indian bonds may start trading with a weaker bias amid a continued rise in crude prices and U.S. Treasury yields. The rupee may also start the week lower in line with Asian peers.
India’s central bank rejected all bids for the benchmark 10-year bond and got underwriters to rescue the shorter-maturity debt at the weekly auction on Friday in efforts to keep yields under check
10-year yields rose 2bps to 6.03%, while that on 5-year bond climbed 5bps on Friday
IGBs are expected to trade weak and OIS to stay volatile after last week’s sell-off as the global rates backdrop continues to support positioning for earlier policy normalization, Barclays, wrote in a note
This will likely push the RBI to step up efforts to keep yields in the desired range
Last week’s Rs 26,000 crore bond auction saw RBI sending yet another yield signal by devolving Rs 2,900 crore out of Rs 3,000 crore of 4.26% 2023 at 4.27% and accepting no bids for 5.85% 2030
USD/INR little changed at 74.1975 on Friday
Implied opening from forwards suggest spot may start trading around 74.25
USD/INR is likely to head to 74 and then the 73.5 support level, according to a Scotiabank note
SGX Nifty Climbs Amid Steady Asia Trading
Asia stocks were steady Monday with investors weighing the pace of economic recovery against more potent Covid-19 strains and central banks mulling stimulus reductions.
Australia underperformed amid stricter curbs to stem the spread of the more potent Delta Covid-19 variant. Japan was little changed and China opened steady. U.S. futures fluctuated. Hong Kong canceled the morning trading session because of a black rainstorm signal.
India's SGX Nifty 50 Index futures for July delivery rose 0.2% to 15,894.50, while MSCI Asia Pacific Index fell 0.1%. The NSE Nifty 50 Index added 0.4% Friday to 15,860.35.
Global stocks are trading near a record high as anxiety about the Federal Reserve’s hawkish tilt eased, with investors dialing back concerns that U.S. policy makers will rush to boost interest rates despite mounting inflation pressures.
Oil was steady near a two-year high ahead of an OPEC+ meeting at which the alliance is forecast to announce supply increases that won’t be enough to keep pace with the global demand recovery.
Cryptocurrencies will be closely watched after the U.K. restricted an affiliate of crypto exchange Binance from doing business in the country. Bitcoin rose for a second day, trading in the mid-$30,000s range in the Asian morning on Monday.
Back home, JSW Energy, Finolex Industries may react as the companies reported quarterly results after the market closed Friday. National Aluminium, Hindustan Aeronautics are among the companies scheduled to report earnings Monday.
Dodla Dairy and KIMS Hospitals to debut after IPO. Foreign investors sold net Rs 780 crore of stocks on June 24, according to NSDL website.