Stock Market Highlights: Indian equity indices, Sensex and Nifty gave up day's gains to end lower Wednesday dragged by selling across sectors. Broader markets further pressurised the market as midcap and smallcap indices closed lower. All the sectoral indices ended in the red with Nifty PSU Bank, Nifty Auto, Nifty Metal and Nifty Media falling the most.
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Ajit Mishra, VP - Research, Religare Broking
Markets traded volatile and settled with a cut of over half a percent. We’re seeing profit-taking and it’s healthy however volatility remains high during such a corrective phase which easily unsettles the participants. We thus advise keeping extra caution in managing overnight risk and preferring low beta counters over others. On the benchmark front, the previous high zone around 15,400 would act as critical support in case of further correction while 15,800 will continue to act as an immediate hurdle.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
Wednesday’s decline seems to have dampened the effort of bulls to sustain the highs. The formation of the long bear candle at the new highs open chances of a reversal pattern. But, follow-through weakness in the subsequent session is expected to confirm the reversal and that could open more weakness for the short term. Crucial supports to be watched at 15,560 and a decisive move below this area is expected to drag the market to lower 15,400 levels.
Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services
The USDINR spot is hovering around 73 zone, whether it will bounce or not depends on US CPI. The fx traders await some guidance from tomorrow’s CPI data and ECB policy. An upbeat CPI data won’t provide an excuse for the Fed to defer the tapering debate a little longer but all will be revealed at the June 16th FOMC meeting. Until then in the USDINR spot, 73.25-73.30 is a crucial resistance, a consistent above that can push prices towards 73.60-73.75 zone while 72.75-72.50 will act as crucial support.
Manish Shah, Founder, www.Niftytriggers.com
Nifty declined sharply for the day as Nifty was not able to hold on to the gains seen in last couple of weeks. Nifty saw a long red candle and the way Nifty has declined it bears to reason that one must take precautions to at least reduce some open trades. Nifty saw a long red candle that was wider than several preceding several candles which prompts us to believe that sellers were in control of the stock. The price action in Nifty suggests 16,000-15,550 is a crucial support for the index. The underlying current is bullish and notwithstanding a couple of days of decline, the index should move higher. The oscillators are in a buy mode as MACD is above a signal line. RSI continues to trade above 60. Markets do not move in a straight line but they oscillate. Nifty may see a decline towards 15,200 and stabilize at lower levels. The undercurrent is strong and Nifty should bounce once selling is done. On the upside, Nifty needs to break above 15,770 for the rally to see higher levels.
Sumeet Bagadia, Executive Director, Choice Broking
Technically, on the daily chart, the Nifty index has formed a long bearish candlestick at the top of the trend, which could be a sign of trend reversal. Moreover, on four hourly charts, the index has formed a Bearish Engulfing pattern, which indicates bearishness in the counter for the near term. In addition, a momentum indicator RSI has slipped from the overbought zone and Stochastic witnessed a negative crossover on the daily time frame that suggests a downward move in the counter for the upcoming session. At present, the Nifty seems to have resistance at around 15,800 levels while immediate support is at 15,430 levels.
Mohit Nigam, Head, PMS - Hem Securities
Nifty50 showed a sharp reversal from an important resistance level of 15,800. 15,500 will be an important support for the short term in Nifty50 and it may be a good buying opportunity around these levels. Immediate resistance levels for Nifty50 are 15,800 and 16,000 while key support levels for Nifty50 are 15,500 and 15.300. An increase in Covid cases in China & volatility in international markets are creating some resistance in the rally. Today's correction can be short term in nature due to some profit booking since we have been making fresh all-time highs since the past few sessions regularly.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The index has been facing resistance at higher levels for a couple of days. As a result of this nervousness, it has given up some gains today which could be attributed to profit booking. However, the trend continues to remain positive as the Nifty has not broken 15,600 on a closing basis. Traders can utilize this drop as an opportunity to accumulate long positions on the index for higher targets of 15,900-16,000.
Market At Close | 38 Nifty stocks close in the red as volatility rises in the 2nd half.
Market At Close | Market breadth favours declines; Advance-Decline ratio at 1:2.
Market At Close | Market slips from record high to close in the red amid volatility.
Rupee At Close | The Indian rupee ended lower at 72.97 per dollar, amid selling in the domestic equity market. It opened flat at 72.90 per dollar against Tuesday's close of 72.88 and traded in the range of 72.88-73.02.
Market At Close | Here are the highlights from today's trading session
- Market Slips From Record High To Close In The Red Amid Volatility
- Nifty Slips 105 Points To 15,635 After A Trading Range Of 233 Points
- Sensex Falls 405 Points To 51,871 & Nifty Bank 285 Points To 34,801
- Midcap Index Ends 195 Pts Lower At 26,848 After A Range Of 694 Points
- Power Shares Slip From Highs But Close In The Green; Tata Power Up Over 6%
- 38 Nifty Stocks Close In The Red As Volatility Rises In The 2nd Half
- Tata Motors, Adani Ports, Shree Cement, L&T Top Nifty Losers
- Petronet LNG Falls 8% After Lower-than-expected Q4 Earnings
- GAIL Closes 3% Lower As Revenue & EBITDA Come In Lower Than Ests
- Adani Power Slips From Upper Circuit To Close 0.5% Lower
- Market Breadth Favours Declines; Advance-Decline Ratio At 1:2
Closing Bell | The Indian equity benchmark indices end lower Wednesday dragged by selling across sectors. The Sensex declined 333.93 points, or 0.64 percent to 51,941.64, while the Nifty ended 104.75 points, or 0.67 percent lower at 15,635.35. Broader markets, Nifty Midcap100 and Nifty Smallcap100 indices closed 0.72 percent and 1.35 percent lower.
All the sectoral indices ended in the red with Nifty PSU Bank, Nifty Auto, Nifty Metal and Nifty Media falling the most. On the Nifty50 index, Tata Motors, Adani Ports, Shree Cements, L&T and Reliance Industries led the losses, while PowerGrid Corporation, SBI Life, NTPC, Titan and Coal India were teh top gainers.
Petronet shelves $2.5 bn Tellurian deal, looks for supplies from Qatar
An initial non-binding agreement for Petronet LNG Ltd to invest USD 2.5 billion in US energy upstart Tellurian’s LNG project in Louisiana in return for gas supplies for 40 years has lapsed, the CEO of the Indian firm said on Wednesday. The deal, which was signed during Prime Minister Narendra Modi’s visit to Houston in September 2019, was billed as one of the largest foreign investments in the US to ship shale gas abroad. Read here.
Insecticides (India) | The Government of India, the Patent Office has granted the Patent no. 368791 titled as "A synergistic fungicidal composition comprising Hexaconazole and Carbendazim" to Insecticides (India) for the term of 20 years from 15h day of June 2017 (Date of Filling). The said patent also covers the fungicidal composition, Hexaconazole 4% + Carbendazim 16% SC which the company has been selling PAN-INDIA under the Trademark of “SOFIA”, the company said in a release.
Labour coming back to sites, says Suntech Realty; mid-income segment showing traction
There is more demand from the mid-income and affordable segment, said Kamal Khetan, chairman & managing director (CMD) of Sunteck Realty, on Wednesday. The company recorded its highest ever collections in Q4. Pre-sales have been robust this quarter led by the mid-income segment. “We have done good sales across all our projects, but we are seeing more demand from mid-income segment and affordable segment,” Khaitan said while speaking to CNBC-TV18. On utilisation, he said, “It varies from project to project, but most of the sites are in the capacity utilisation of 70-80 percent. However, now since the lockdown is opening up, we are seeing the labour returning back to work and hence we can see things returning back to normal in the next few days.” Watch here,
Blackstone-backed Sona Comstar to launch IPO on June 14, price band Rs 285-291 per share
Auto component manufacturer Sona Comstar will launch an initial public offer (IPO) on June 14 at a price band of Rs 285-291 per share. The issue will close on June 16. The Rs 5,550-crore offer comprises a fresh issue of Rs 300 crore and an offer for sale of up to Rs 5,250 crore by Singapore VII Topco III Pte Ltd. The company has reserved 75 percent portion of the total issue size for qualified institutional buyers, 10 percent for retail, and 15 percent for non-institutional investors. The issue market lot size is 51 shares and a retail-individual investor can apply for up to 13 lots. Read here.
Aashish P Somaiyaa, CEO at White Oak Capital
Rs 12,000 crore net inflow in equity and equity-oriented hybrid funds is a significant jump and a sign of investor confidence – amongst the highest net inflows in a long time especially if one further adds flows into index funds, ETFs and international equity funds. Basis recency bias one is seeing a rising trend of money flowing into international funds and investors need to be wary of trend following piling more and more money into developed market technology stocks in the late stages of a multi-year boom.
Indian Metals Q4FY21 | The company reported a net profit of Rs 65.4 crore as against a loss of Rs 51.9 crore, YoY. Revenue rose 52 percent to Rs 576.1 crore from Rs 379 crore, YoY. EBITDA was at Rs 128.6 crore against an EBITDA loss of Rs 3.6 crore, YoY.
Mohit Nigam, Head, PMS - Hem Securities
As per data posted by AMFI today, the Mutual Fund industry witnessed net equity inflows for the 3rd straight month in May 2021 after 8 months of consistent outflows during the financial year 2021. Rs 10,082.98 crores were recorded as net equity inflows in May, which is nearly thrice that of April's corresponding data. It is also the highest amount of net equity inflows since March 2020. If we further dig into specific schemes, multi-cap and mid-cap schemes topped the list of net inflows while small-cap and flexi caps were right behind. Moreover, contributions from SIP also increased month-on-month, recording Rs 8,818.9 crore against Rs 8,596 crore in April 2021.
This kind of consistent numbers look favorable for the mutual fund industry and for the economy as a whole as it highlights investor's confidence and normalcy taking its hold back in the economy. However, withdrawals of Rs 45,447 crore were seen in liquid funds after addition of odd Rs 41,500 crore in the previous month. This led to a net outflow of Rs 38,602 crore on overall basis. Total AUM of the industry stands at Rs 33.06 trillion, which is higher by 2.1% as compared to the previous month.
GAIL India Q4FY21 | The company's net profit rose 28.3 percent to Rs 1,908 crore from Rs 1,487.3 crore, while revenue fell 0.1 percent to Rs 15,449 crore from 15,454.3 crore, QoQ. EBITDA increased 28.4 percent to Rs 2,465 crore from Rs 1,919.5 crore and EBITDA margin improved to 16 percent from 12.4 percent, QoQ.
Market Watch: Aditya Agarwala, YES Securities
- Buy Escorts at current levels and look for a target of Rs 1,250 on the upside, with a stop loss at Rs 1,190 to about Rs 1,185 on the downside.
- Buy Ajmera Realty at current levels and look for a target of Rs 170 on the upside, keep a stop loss of Rs 145 on the downside.
EFC approves PLI plan for speciality steel; ministry to move cabinet soon
The production linked incentive (PLI) scheme for the speciality steel manufacturing is now a step away from cabinet approval, as the expenditure finance committee has cleared it. CNBC-TV18 has learnt that the Ministry of Steel is in the process of finalising cabinet note with tweaked eligibility criteria, incentive slabs, and other conditions. The PLI scheme, which has an outlay of Rs 6,322 crore, is being considered to plug import of speciality steel in a bid to boost manufacturing and enhance export capabilities in this segment of steel making. Read here.
Credit costs for PSU banks to moderate in FY22, says Morgan Stanley; upgrades Bank of Baroda
The state-run lenders will see a tussle between higher restructured loans and lower NPAs in FY22, while their credit costs are expected to moderate depending upon the duration of the second wave of COVID-19, brokerage firm Morgan Stanley said in a report. CLSA expects moderation in FY22, given lower corporate NPLs, moderation in retail slippages, and modified ECLGS lending scheme, which allows extension of interest-free period. Read here.