Here are the key highlights for today's trading session:
1. Market gains for the 4th straight session but closes off intra-day highs
2. Sensex & Nifty end at 1-month highs with both indices gaining over 2% each
3. Nifty closes 246 points higher at 9,826 and Sensex 879 points higher at 33,303
4. Financials contribute 50% to Nifty's gains; HDFC twins top gainers
5. Nifty Bank gains 663 points to 19,960 and Midcap 412 points to 13,685
6. Market Breadth firmly in favour of advances; advance-decline ratio at 5:1
7. 40 Nifty stocks close in the green; Bajaj Finance, Bajaj Finserv, Titan top gainers
8. All sectoral indices close in the green with Nifty PSU Bank being top gainer
9. M&M surges 6% as May tractor sales come in higher than expectations
10. Biocon advances 9% after Mylan gets positive order in case against Sanofi
11. Adani Power makes an upmove of over 9% ahead of Board meet
12. Dr Reddy’s fail to cheer EIR afor Srikakulam unit; stock slips 3%
Closing Bell: Indian market pare minor gains to end higher; Nifty PSU Bank top-performing index
Indian benchmark indices continued the rally on the fourth straight day on June 1 after government relaxed some lockdown norms to revive the economy. At close, the Sensex was up 879.42 points or 2.71 percent at 33,303.52, while Nifty was up 245.85 points or 2.57 percent at 9,826.15. About 1,862 shares have advanced, 583 shares declined, and 137 shares are unchanged. All the sectoral indices ended in the green, while broader indices i.e. BSE Smallcap and Midcap indices rose between 2-3 percent.
Stock Update: Granules India's shares rose 3 percent intraday on Monday after the company said it will buyback shares worth Rss 250 crore at Rs 200 per share. The buyback will start on June 8 and close on June 19. The total buyback size is 16.83 percent of the fully paid-up equity share capital of the company.
Once a multibagger, this stock lost over half its market value since 2018
Air cooler-maker Symphony, which had risen over 900 percent between 2011 and 2018, has erased gains by around 60 percent since its peak. The company's stock price had risen as much as 906 percent from Rs 220 per share on June 1, 2011, to its all-time high of Rs 2,213 per share on January 11, 2018. However, the stock started to fall afterward and has declined nearly 60 percent from its all-time high to Rs 897 currently. Read more
SRF's shares gain 7% over COVID-19 update
SRF's share price surged 7 percent on Monday after the company informed the exchanges that its chemicals and packaging film business has resumed operations. In its COVID-19 update, it said that the exports have remained robust, however, the domestic focused technical textiles business has been impacted adversely.
The company expects demand revival of its B2B sales as the lockdown eases.
On the NSE, the shares surged 7 percent to Rs 3,734 per share.
Trending Stocks: Adani Power's share price gained 11 percent to Rs 40 on the NSE after the company said that it will consider delisting its shares from the exchanges. "Meeting of board of directors of Adani Power to be held on June 3, 2020 to consider the proposal for voluntary delisting of the equity shares of the company received from Adani Properties and related matters incidental thereto," the company said in a regulatory filing. The public shareholders hold 96,53,26,374 equity shares, which corresponds to 25.03% of the paid-up equity share capital.
Rupee Update: The Indian currency ended higher but pared all the gains on Monday after the benchmark indices cooled off. The Indian rupee ended at 75.54 against the US dollar as compared to Friday's close of 75.61.
Market Expert Views: Major indices, Nifty & Sensex, both are up by 3% plus in todays’ trading session, buoyed by positive Asian markets, along with the government’s relaxation of curbs on most economic activities, even though lockdown in containment zones was extended till June 30. Rally has been broad-based with Advances outnumbering Declines by 15:1 in CNX Nifty 500. Bajaj Twins, HDFC Twins, along with heavyweights like Reliance, have led the way, with indices breaching the April highs. Overall, sustaining above the current levels is very crucial for a move towards the 10,000 mark in Nifty, in the near future, says Aamar Deo Singh, Head Advisory, Angel Broking Ltd.
European markets gain as economies reopen; protests erupt across the U.S.
European stocks advanced on Monday as lockdown measures ease across the continent, while protests continue throughout the U.S. following the police killing of George Floyd, an unarmed black man, last week.
London’s FTSE 100 added 1.4 percent in early trade while France’s CAC 40 climbed 1.5 percent and Italy’s FTSE MIB gained 1.3 percent. Markets are closed in Austria, Denmark, Germany, Norway, Sweden and Switzerland for a public holiday.
Investors around the world will be focused on widespread civil unrest unfolding in the U.S.; hundreds of people were arrested over the weekend as protesters and police clashed in cities across America after the killing of George Floyd sparked more than 100 protests, rallies and vigils, according to NBC News.
'Apna Time Aayega': Hopeful bull Rakesh Jhunjhunwala remains positive on India story despite being 'frustrated'
Noted investor Rakesh Jhunjhunwala said he remains the eternal bull on Indian markets, saying stocks could embark on a long-term bull market following the correction induced by the COVID-19 crisis.
“I am very bullish on the market and remain fully invested,” Jhunjhunwala told CNBC-TV18, even as he peppered his comments with a sense of cautiousness. “From being a “sure bull”, I have become a hopeful bull,” he said. Click here to read more
Hotel stocks surge nearly 18% as govt allows resumption of hospitality services from June 8
Hotel stocks are rallying today after the Home Ministry's earlier announced the re-opening of economic and other activities in the country except for containment zones, which will continue to remain in lockdown till June 30.
In Unlock 1.0, the government has allowed hotels, restaurants, and other hospitality services to resume operations from June 8 onwards.
This has sent all hotel stocks to skyrocket. LemonTree's shares hit an upper circuit of 5 percent to Rs 18.90. Meanwhile, Chalet Hotels share price soared 18 percent to Rs 118 while Indian Hotels, EIH Ltd and Taj GVK traded nearly 10 percent on the NSE.
DGCA extends deadline for IndiGo, GoAir to replace engines of A320neo planes to Aug 31
In a major relief to IndiGo and GoAir, the Directorate General of Civil Aviation has extended the deadline for engine replacement of its A320neo fleet to August 31 from May 31 earlier as supply chains are disrupted due to COVID-19.
Both airlines have to replace nearly 60 A320neo engines, the regulator said.
This is the second extension of this deadline. Earlier, the regulator had extended the deadline to May 31 from Jan 31. Click here to read more
Buzzing Stock: ICICI Bank's shares surge nearly 5% to Rs 348 on the NSE. The Bank has cut lending rates by 5 bps across all tenures.
Technical Experts View: The rebound in the index was largely on the expected lines and we may see a further uptick in Nifty, citing room in the banking pack. On the higher side, 9,650-9,750 zone may act as hurdles while 9450 and 9200 levels will act as support in case of any dip. Traders should plan their trades accordingly and focus more on stock selection, says Ajit Mishra, VP - Research, Religare Broking.
CONCOR share price up 2% after Credit Suisse upgrades stock to outperform
Container Corporation of India (CONCOR) share price was up over 2 percent in the morning trade on June 1 after global research firm Credit Suisse upgraded the stock to outperform from underperform. The research firm has set a target of Rs 475 per share, according to a report by CNBC-TV18. It sees potential upside from DFCC with volume contribution at 50 percent. It is of the view that the stock's valuations is reasonable at current levels.
Escorts nears record high on May tractor sales nos, soars 32% in one month
Shares of Escorts were up 4 percent to Rs 941 on the BSE on Monday after the company reported domestic tractor sales of 6,454 units for May. It had sold 6,488 units in the domestic market during the same month last year. The stock of Escorts was trading higher for the fourth straight day. In the past one month, the stock has rallied 32 percent, as compared to a 1.3 percent fall in the S&P BSE Sensex. It was trading close to its record high level of Rs 1,019, touched on May 2, 2018.
Maruti Suzuki posts sales of 18,539 units in May
Maruti Suzuki posted total sales of 18,539 units in May 2020, including 13,865 units in domestic market and sales of 23 units to other OEMs. The company resumed its manufacturing operations from May 12 at its Manesar facility and from May 18 at its Gurugram facility. Production also resumed at Suzuki Motor Gujarat Pvt Limited (SMG) from May 25. The company exported 4,651 units following resumption of port operations at Mundra and Mumbai port, ensuring that all guidelines for safety were followed.
IDBI Bank shares hit 20% upper circuit as the bank posts profit after 13 quarters of net losses
Shares of IDBI Bank hit the upper circuit of 20 percent in the early trade on Monday after the bank posted a profit after 13 straight quarters of net losses. The stock rallied 19.95 percent intra-day to Rs 24.35 on the BSE. In Q4FY20, the bank reported a net profit of Rs 135 crore as against net loss of Rs 4,918 crore in the corresponding period of last year. The Life Insurance Corporation of India (LIC) owned IDBI Bank’s net interest margin during the quarter jumped to 3.8 percent as against 2.27 percent, QoQ. Net interest income witnessed a growth 46 percent YoY to Rs 2,356 crore.
Rupee Update: The Indian currency gained on Monday following the positive buying sentiment in the equity market. It has opened 26 paise at 75.35 per dollar against Friday's close of 75.61 per dollar. Last week, the rupee was the second best performing Asian currency.
Buzzing Stock: Voltas' share price rallied 9 percent over healthy Q4 earnings. The company posted 12.5 percent jump in its consolidated Q4FY20 net profit at Rs 159.5 crore against Rs 141.74 crore in a year ago period. The total income for the quarter was up at Rs 2,150.09 crore as compared to Rs 2,120.02 crore in the corresponding quarter of the previous fiscal. Among brokerages, Credit Suisse and Jefferies maintained their bullish calls on the stock. Strong franchise and improvement in margins has helped the company to still report healthy earnings, said the brokerages.
Asia's factory pain worsens as China's recovery fails to lift demand
Asia’s factory pain deepened in May as the slump in global trade caused by the coronavirus pandemic worsened, with export powerhouses Japan and South Korea suffering the sharpest declines in business activity in more than a decade. China’s Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) hit 50.7 last month, marking the highest reading since January as easing of lockdowns allowed companies to get back to work and clear outstanding orders. Japan’s factory activity shrank at the fastest pace since 2009 in May, a separate private sector survey showed while South Korea also saw manufacturing slump at the sharpest pace in more than a decade.
Yes Bank dispute: Madhu Kapur & family give up promoter status, Rana Kapoor next?
Its curtains down for the longstanding Kapoor versus Kapur dispute at Yes Bank. Madhu Kapur and family have now relinquished their status as promoters of the bank, less than three months into the bank’s bailout. Yes Bank on Saturday informed exchanges that it “received a letter dated May 28, 2020 (Received on May 29, 2020) from (i) Mrs. Madhu Ashok Kapur; (ii) Mrs. Shagun Kapur Gogia; (iii) Mr. Gaurav Ashok Kapur; and (iv) Mags Finvest Private Limited [collectively referred to as “Madhu Kapur Group”] consenting to reclassify their shareholding in the Bank as ‘non-promoter shareholders’ (i.e. public shareholders).”
The Bank said it would take further necessary action to give effect to the above.
