Here are the key highlights from today's trading session:
1. Sensex & Nifty snap 5-day gaining streak, close Wednesday trade flat
2. Sensex ends 59 points lower at 37,872 after a trading range of 600 points
3. Nifty closes 30 points lower at 11,133 after a trading range of 182 points
4. Nifty Bank extends gaining streak to 5 days, up 101 points to 22,883
5. Midcap index ends 21 points higher at 15,423; market breadth favours declines
6. RIL, Axis Bank, ITC & HDFC lift while Infosys, HUL, HDFC Bank & TCS drag Nifty
7. Reliance Industries closes at record high; stock above Rs 2,000/share for the 1st time
8. Bajaj Auto down nearly 1% after reporting earnings in-line with estimates
9. HUL slips 3% despite company reporting earnings above estimates
10. Axis Bank surges over 7% after reporting moratorium of less than 10%
11. M&M Finance gains for 5th consecutive day after announcement of rights issue
Closing Bell: Market ends in red, Nifty holds 11,000; Hero MotoCorp, BPCL top losers
Indian shares ended the five-day winning streak with landing in losses on Wednesday dragged by selling in IT, auto and state-run lenders.
At close, the Sensex ended 59 points or 0.15 percent lower at 37,871 while the Nifty50 index closed at 11,133, down 30 points.
All the sectoral indices were trading in the red except pharma and media index. Broader markets ended flat, Nifty Smallcap 100 index closed 0.01 percent lower while the Nifty Midcap 100 index closed 0.14 percent higher.
Axis Bank, Titan, Power Grid, Zee Entertainment and ITC remained the top gainers of the Nifty50 index while Hero MotoCorp, BPCL, Hindustan Unilever, Tata Motors and Tata Steel were the index top losers.
Stock Update: NOCIL's shares gained as much as 5 percent to Rs 110.3 on the NSE despite company's shareholding pattern indicating Ashish Kacholia's decreasing stake in the company. He held 2.85 percent in the company in the quarter ended March. Ace investor Dolly Khanna also reduced her stake to 1.5 percent from 1.7 percent earlier, said the exchanges.
IT stands out! Motilal Oswal increases weightage of sector in portfolio, adds Wipro
June quarter corporate earnings season kicked off with IT companies delivering robust results in terms of revenue, margins, deal wins and guidance for FY21. Their Q1 results exceeded street expectations resulting in material earnings upgrades for the firms, said Motilal Oswal (MOSL) in a recent report.
Healthy deal wins, robust deal pipeline and better-than-expected guidance for FY21 has driven 12-14 percent earnings upgrade for Infosys, HCL Tech and Wipro, added the brokerage firm.
This is impressive given the sharp earnings volatility seen in other sectors due to the COVID-19 pandemic induced lockdowns and consequent demand-supply disruption.
Hence the brokerage has further increased its allocations to the IT sector in the model portfolio and added 100 bps to Infosys, and introduced Wipro. Read more here
Yes Securities suggests two trading ideas that are currently in a consolidation phase
“Titan has beautifully entered into a consolidation and is on the verge of a breakout from an ascending triangle pattern. It has underperformed for quite some time and looking at the chart structure, the volumes have been healthy. It is trading above the 20 DMA volume and the RSI also suggests that the momentum will continue in Titan. So, my sense is the upward breakout will ultimately happen in Titan above Rs 1,050 -- breakout from an ascending triangle pattern is confirmed. So, I am pre-empting a buy on Titan for a target of Rs 1,095, keeping a stop loss at Rs 1,014," says Aditya Agarwal from Yes Securities.
He also recommended Cholamandalam Finance. According to him, the stock has entered into a consolidation phase after a decent pullback from the lows. After the consolidation phase gets over, the stock will resume its uptrend. So, one can buy Cholamandalam Finance for target of Rs 235 with a stop loss at Rs 206 on the downside.
Gold rate today: Yellow metal at all-time high; prices above Rs 50,000 per 10 grams; Silver jumps over 6%
Gold prices in India hit a record high of Rs 50,000 per 10 grams on the Multi Commodity Exchange (MCX) Wednesday following a rally in international spot prices that rose to highest in nearly nine years on hopes of more liquidity stimulus and a weaker dollar.
At 11:20 am, gold futures for August delivery rose Rs 498 or 1.01 percent to Rs 50,025 per 10 grams as against the previous close of Rs 49,527 and opening price of Rs 49,931 on the MCX. The gold prices touched all-time high of Rs 50,043 per 10 grams. Click here to read
Govt considering appointing new members to MPC; process likely to start soon
The government is considering appointing new members to the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), sources told CNBC-TV18.
RBI's six-member rate-setting panel has three external members whose appointment is for a tenure of four years. The members are also eligible for reappointment.
The tenure of the current external members, Chetan Ghate, Pami Dua and Ravindra Dholakia, who were appointed in 2016, will end in August.
The central bank had earlier sought an extension of the term of the external members on the panel until March due to the COVID-19 situation.
A panel headed by the Cabinet secretary will select the new MPC members and the process for the same is likely to start soon, added the sources.
IndiaMART InterMESH shares rally over 14% as Q1FY21 net profit doubles
Shares of IndiaMART InterMESH jumped over 14 percent in early trade on Wednesday after the company's consolidated profit for the first quarter of fiscal 2021 doubled amid strong operating performance. The stock price gained as much as 14.06 percent to hit an intraday high of Rs 2,456.60 apiece on the BSE. At 11:45 am, the shares traded at Rs 2,225.80, up Rs 72.20, or 3.35 percent.
The company’s net profit in Q1FY21 increased to Rs 74.1 crore from Rs 32.4 crore in the year-ago quarter. Revenue from operations during the quarter rose 3.9 percent to Rs 153.1 crore from Rs 147.3 crore YoY led by marginal improvement in the realisation of existing customers.
“Number of paying subscription suppliers were the same as last year due to the challenging economic and market conditions amid the COVID-19 pandemic. Consolidated deferred revenue grew 3 percent to Rs 628 crore in Q1 FY21 YoY,” the company said in a regulatory filing. Read more
Reliance Industries shares hit Rs 2,000-mark, up 130% from March lows
The share price of Mukesh Ambani-led Reliance Industries hit Rs 2000-mark on Wednesday, rising over 130 percent from its March low of Rs 867.82. The stock also became the first Indian company to cross the market capitalisation of over Rs 12 lakh crore on the back to multiple investments in its digital arm Jio Platforms. Its current market cap (m-cap) stands at Rs 12.62 lakh crore.
In a recent report, Nomura noted that for the sixth consecutive year, the oil-to-telecom-to-retail conglomerate has outperformed the benchmark Nifty50 index. On a year-to-date basis, RIL has jumped 31 percent as compared to an 8 percent fall in the broader NSE Nifty50 index.
It added that while the valuations of the RIL stock are getting richer, it feels that the outperformance may sustain and hence, raised the target price on the stock to Rs 2,200 from an earlier target of Rs 1,900 per share. Click here to read more