Stock Market Highlights: Indian equity indices, Sensex and Nifty ended Tuesday's volatile session flat dragged down by selling in banks, metals and auto stocks. Broader markets, midcap and smallcap indices also closed lower. Except for IT, media and pharma, all other sectoral indices ended in the red.
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Yash Gupta Equity Research Associate, Angel Broking
We expect Nifty to be volatile this week and exchange volumes to decrease as the new 75 percent margin rule got implemented from today i.e 01-June 2021. Today we have seen some profit booking in S&P BSE METAL and S&P BSE Basic Materials. We expect profit booking in metals will be continue thought this week. We expect the market to consolidate for this week in a trading range of 15450-15700.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing a fine upmove in the last four sessions, Nifty shifted into a consolidation on Tuesday and closed the day with a minor negative note. Tuesday’s consolidation movement has not changed the positive sentiment created in the market. The next upside levels to be watched for Nifty at 15,800 levels, which could be reached in the next 3-4 sessions. At the same time, one needs to be cautious about long positions at the new highs. Immediate support is placed at 15,500 levels.
Manoj Vayalar, VP- Derivatives, Religare Broking
Nifty futures has rolled around 77% vs 66% with respect to the last month, the open interest for the new June contract is higher, due to higher participation in to June series. Nifty futures are positively biased till we are trading below VWAP (Volume weighted average price) of 15300 for the June series. We expect nifty to be in 15250-15850 range for the first fortnight of the June series. FIIs have sold around Rs 6015 Cr in the cash market in May. We believe the Nifty might be in a range of around 15200-16000 for major part of June series.
Ajit Mishra, VP - Research, Religare Broking
Markets ended almost unchanged in a choppy session, taking a breather after the recent surge. After the initial uptick, the benchmark drifted lower and remained in a narrow range till the end. It’s a healthy pause and we may see further consolidation in the benchmark in the following session. However, there’ll be no shortage of trading opportunities on the stock-specific front so traders should maintain their focus on identifying the sectors/stocks and accumulate them on dips. With the earnings season largely behind us, the markets would focus on global markets and upcoming monetary policy review meet for cues.
Rupee At Close | The Indian rupee ended 28 paise lower at 72.90 per dollar amid volatility in the domestic equity market. The local currency opened higher at 72.53 per dollar against the previous close of 72.62 and traded in the range of 72.53-72.94.
Manish Shah, Founder, www.Niftytriggers.com
Nifty closed the day marginally lower. The overhang of RBI monetary policy and the usual uncertainty before a major announcement is palpable due to the listless movement in Nifty. The pattern play for the day is a narrow ranged candle with a small real body. At times a pattern of this type before a major announcement usually results in sideways action for a couple of days. Nifty could see a rangebound action over the next two days within 15,470-15,660. The underlying trend Nifty and Bank Nifty is bullish. Any statement post the meeting which is interpreted as a positive development could be a trigger for a rally in Nifty towards 15,775-15,800 after the end of the policy meet. The underlying current in Nifty is bullish as we saw a range expansion candle yesterday and the price itself is in a new territory. Furthermore, oscillators and trend following indicators are also suggesting strong momentum on the upside. In case of any short term drop in Nifty towards 15,450-15,500 should be considered as a buying opportunity.
Market At Close | Adani Group stocks rise; Adani Ports up 4%, Adani Entertainment 8% & Adani Power 3%. ONGC & GAIL rise as crude moves to over 2-year high.
Market At Close | Market breadth favours declines; Advance-Decline ratio at 1:2
Market At Close | Sensex & Nifty close flat with financials dragging the market.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The markets took a bit of a breather today but the overall trend remains bullish. Traders can consider accumulating long positions on dips and mild corrections for higher targets. The Nifty seems poised to achieve 15,900-16,000 with good support at 15,300.
Market At Close | Here are the highlight sof today's market performance
- Sensex & Nifty Close Flat With Financials Dragging The Market
- Except SBI, All Nifty Bank Constituents Lower; ICICI Top Loser
- Nifty Falls 8 Points To 15,575 & Sensex 3 Points To 51,935
- Nifty Bank Slips 189 Pts To 35,337 & Midcap Index 26 Points To 25,750
- Adani Group Stocks Rise; Adani Ports Up 4%, Adani Ent 8% & Adani Pwr 3%
- ONGC & GAIL Rise As Crude Moves To Over 2-year High
- Bajaj Auto Closes Off Lows But In The Green After Better-than-expected May Sales
- Maruti, Ashok Leyland, TVS Slip As May Sales Come Below Estimates
- M&M Ends Flat Despite Better-than-expected Tractor Sales & +ve Commentary
- SBI Rises To Record High With Stock Gaining Nearly 2%
- Steel Shrs Fall On China’s Easing Of Restrictions; Nifty Metal Down 1%
- JSW Steel, Tata Steel & JSPL Fall 2% Each, SAIL Down More Than 4%
-Market Breadth Favours Declines; Advance-Decline Ratio At 1:2
Closing Bell | Indian benchmark equity indices erased early gains to end Tuesday's volatile session on a flat note dragged by selling in banks, metals and auto stocks. The Sensex eased 2.56 points to end at 51,934.88, while the Nifty closed at 15,574.85, down 7.95 points, or 0.05 percent. Broader markets underperformed the benchmarks as the midcap and smallcap indices closed lower. India's manufacturing PMI coming in at an 8-month low also weighed on the sentiment.
Among sectors, Nifty Metal lost nearly 0.8 percent while Nifty Bank and Nifty Auto were down 0.5 percent and 0.4 percent, respectively. However, Nifty IT and Nifty FMCG ended in the green. On the Nifty50 index, Adani Ports, ONGC, Bajaj Finance, SBI and HDFC were the top gainers while JSW Steel, Tata Steel, ICICI Bank, Asian Paints and UltraTch Cement led the losses.
Market Watch: Anand Tandon, Market Expert
On Aurobindo Pharma | It is not necessarily the most attractive stock in terms of growth prospects but that is also not the most expensive. So you are getting what you are paying for. If you feel that the other stocks in the market are overpriced, you may want to continue to hold it. If you are looking at a fresh entry, given that the market looks a bit stretched, you may get a better entry point at this stage.
On PNB Housing Finance | The upside continues to remain. On a longer-term basis, if you are getting in at this stage, you are not going to be losing money.
Edelweiss Financial Services | Edelweiss Retail Finance Limited (ERFL), an arm of the Edelweiss Group today announced strengthening of its existing Co-Lending partnership with Central Bank of India. The lenders recently signed a new MoU under RBI’s CLM, significantly expanding the portfolio of lending products available to MSMEs, who can now avail of collateral free business loans up to Rs 50 lakh as against Rs 10 lakh earlier.
Market Watch: Mehraboon J Irani MD & CEO Gini Gems Consultants
Quite a few of the large auto stocks have come down sharply. At the present level, I believe that quite a few of the risks are now in the price. So as and when we see a rebound maybe in Q3 or Q4 of 2021, I think these auto stocks will also rebound quite sharply. If you ask me select one name in the auto sector, I would go with something which has an agricultural game, I would go with VST Tillers & Tractors, followed by Escorts as my second stock.
TVS Motor Company May Auto Sales | The company’s total sales rose to 1.67 lakh units versus 58,906 units, YoY. Exports increased to 1.14 lakh units as compared to 17,707 units, YoY.
Atul Auto May Auto Sales | The company’s total sales declined 75.61 percent to 100 units as compared to 410 units, YoY.
OPEC+ seen sticking with supply plan as Iran's oil yet to return
OPEC+ is likely to stick to the existing pace of gradually easing oil supply curbs at a meeting on Tuesday, three OPEC sources said, as producers balance expectations of a recovery in demand against a possible increase in Iranian supply, a Reuters report said. The Organization of the Petroleum Exporting Countries and allies - known as OPEC+ - decided in April to return 2.1 million barrels per day (bpd) of supply to the market from May to July, as it anticipated global demand would rise despite high numbers of coronavirus cases in India. Since that decision, oil has extended its rally and gained more than 30% so far this year, although the prospect of increased output from Iran, as talks on reviving its nuclear deal make progress, has limited the upside.
HDFC Securities on The Phoenix Mills
Phoenix Mills reported a strong recovery as consumption reached 90% of 4QFY20 on a like to like basis. Retail rental income during the year was 55% of FY20, better than the guidance of 45-50%. The hospitality business also saw a strong recovery as it benefitted from social events and staycation trend. The residential segment continued on the recovery path with sales of Rs 630 million.
However, lockdown following the second wave halted the recovery. Despite the near-term challenges, Phoenix Mills is on track to achieve its target of 12 msf retail and 6 msf commercial GLA by FY24 and will look to add 1 msf every year. We remain positive on Phoenix Mills, given the strong liquidity and reiterate BUY with a reduced target price of Rs 973/sh. We have tweaked our FY22/FY23 EPS estimates by -44/+1% to account for the impact of the second wave.
Radico Khaitan Q4FY21 | The company’s consolidated net profit jumped to Rs 73.5 crore from Rs 32.7 crore, while revenue rose 18.7 percent to Rs 694.7 crore from Rs 585.4 crore, YoY. Consolidated EBITDA increased 23.2 percent to Rs 101.3 crore from Rs 82.3 crore, while EBITDA margin improved to 14.6 percent as against 14 percent, YoY.
Pepperfry expects to join unicorn club soon, to launch IPO after booking profit
Online furniture company Pepperfry would be in the unicorn club -- companies with a valuation of more than USD 1 billion -- by the time its initial public offer hits the market, a top official of the company said on Monday. Pepperfry co-founder and COO Ashish Shah while sharing plans to expand offline studios told PTI that the company expects to turn profitable as soon the market opens. "We are a Rs 1,000 crore turnover company. We are very close to becoming profitable. As soon as the market opens, I think it will show our first profit mark. After this we plan to go for an IPO in the next 12-18 months," Shah said. Read here.
CNBCTV18 Market | Crude extends gains, Brent near $71 & Nymex above $68
CLSA sees 50% upside for SBI
SBI has been one of our top financials picks, and since Aug-20, it has outperformed peers by 40-70%. FY21 pandemic performance has surprised positively and we see investors,especially FIIs, interested in SBI post 2HFY21, as the strong performance is not a flash in the pan. We summarise our top-5 key investor discussions/pushbacks and believe SBI is just not a value trade and relatively will do well on asset quality and we estimate ROEs to increase to 15% by FY23CL. We reiterate BUY with PT of Rs 650 (+50% upside).
Emkay Global Financial Services on Magma Fincorp
In our view, after recent fund infusion and current quarter clean-up, Magma is well-placed on adequacy, promoter back-up and liquidity fronts. We are building in ~30% AUM CAGR for FY21-24E, backed by product diversity. With ease in cost of funds, we expect margin expansion to 875 bps by FY23E from ~800 bps in FY21.
With the change in guard, we do believe Magma 2.0 would be a journey of superior profitable growth, resulting in significant improvement in return ratios. We are resuming coverage of Magma Fincorp with a buy rating and target of Rs 175, corresponding to 2.1x P/ABV FY23E with RoE of 10.8% and RoA of 3.4%.
See relatively higher steel prices in next decade; exposure to iron ore a plus for Indian cos: ICICI Pru’s Anand Shah
Anand Shah, Head-PMS and AIF Investments at ICICI Prudential AMC, said that bottom-up and top-down is favourable for the steel sector for the next 10 years. “It is a twin story. Steel prices in the last decade were extremely depressed because of overcapacity in China. We feel that the next decade will be significantly different vis-a-vis what they were in the last 10 years. Steel prices will be relatively higher; we are not really talking about super cycle, but the prices will be relatively higher,” he said in an interview to CNBC-TV18. Read here.