Thank you, readers! That's all from CNBCTV18.com's live market coverage on June 20, 2022. Stay tuned for other updates on our website: CNBCTV18.com.
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Rupee ends higher at 77.98 vs US dollar
On Friday, it had settled at 78.07 against the greenback. (Read more)
Market At Close | Last-hour recovery helps Sensex and Nifty settle near day’s highs
Here are some highlights:
--HDFC Bank supports but IndusInd, Axis Bank and ICICI Bank drag Nifty Bank
--Broader markets suffer sharp losses
--Midcap and smallcap indices hit over one-year lows
--FMCG stocks rise on positive cues
--Upstream oil companies (ONGC, Oil India) slide amid falling crude oil rates
--Chennai Petroleum and MRPL plunge up to 19 percent
--Axis Bank, BPCL and Hindalco six other Nifty stocks hit 52-week lows
--Vedanta, Rain Industries, Bandhan, Hindustan Copper and GNFC fall over 10 percent each
--Vedanta suffers biggest one-day fall in 18 months on Tuticorin plant sale
--Metal stocks fall amid a sharp fall in global benchmark rates
Well-capitalised banks best positioned to benefit from rising rate environment: HDFC Securities' Unmesh Sharma
Unmesh Sharma, Head-Institutional Equities at HDFC Securities, tells CNBC-TV18 that well-capitalised banks are in a better position to benefit from the environment of rising interest rates. The recent sell-off has turned valuations in the banking basket more interesting, he says.
"If you adjust the value of the subsidiaries, a lot of these companies are now trading between 1.5 percent and 2.5 times price to book... Of course they can go down further. But if you are a long-term investor, looking at 12 months or beyond, this is one space you definitely want to be overweight on,” he adds.
Why FMCG stocks were trading higher on Monday?
FMCG stocks were trading higher on Monday, in an otherwise weak market, as investors turned positive on the space owing to a number of factors. While Nestle was trading higher by 1.90 percent around 1 PM, Godrej Consumer was up 4.07 percent. Britannia, Dabur and Marico were trading 1.63 percent, 2.56 percent and 1.09 percent higher, respectively. (Here's why)
Godrej Properties 4% down, Indiabulls, Sunteck Realty 5% down
The Nifty Realty index is 0.2 percent up from intraday low at 367. Major real estate stocks like DLF and Oberoi Realty are down.
Taking to CNBC-TV18, Mohit Malhotra of Godrej Properties told CNBC-TV18, "We are present in the top six cities, we are seeing very strong demand across cities. If you look at the top four cities in India, the peak was in FY11 and if you look at even the last year while we had record sales, we were still at 75 percent of that peak, which we hit in FY11. So, the markets have actually corrected very sharply over the last 10 years."
"This was also a period where the income levels have risen between 10 to 12 percent... affordability is at an all-time high. We have also seen a supply very sharply coming down in this sector since the time of introduction of RERA and the liquidity crisis which followed," he said.
He added: "There is a complete shift in how people perceive home today given the amount of time we have spent at our homes during the pandemic. So I think all these factors combined, we are on a positive upcycle and if we just maintain discipline in price hikes, I don't see any reason why this recovery would not continue."
|Top Realty Losers|
Events of the last few days have increased the risk of recession in the US: VK Vijayakumar
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services said that the events of the last few days have increased the risk of recession in the United States. "Synchronised rate hikes by most central banks will certainly hit global growth this year. High interest rates and lower growth will impact corporate earnings." He added: "The correction in the Indian market is not as steep as in the US mainly because of the sustained buying by DIIs and retail countering the relentless selling by FIIs."
He said that if the crude oil prices continue to fall, it can help tame inflation, globally.
"Investors can use weakness in the market to buy high quality large-caps across sectors," he advised.
FMCG basket continues to reel under pressure as central banks line up efforts to tame decades-high inflation
The FMCG index has corrected 14 percent from its 52-week high.
Here are some key triggers for the space:
--Globally coordinated efforts to tame inflation
--Price hikes by companies to protect their margins
--Expecations run high on monsoon and demand uptick in second half of the year ending March 2023
--Cooling off competition from new age D2C
--Two-year underperformance has sobered valuations
--Risk-off sentiment in other sectors
|Stock||CMP vs 52-week high (%)|