Stock Market Highlights: Indian equity indices, Sensex and Nifty ended marginally lower on Tuesday dragged by losses in banking and metal stocks amid mixed global cues. Broader markets outperformed the benchmarks as the midcap and smallcap indices closed over half a percent higher each. Gains were seen in IT, pharma, auto, FMCG and realty sectors.
Market At Close | IT stocks support market with Nifty IT rising over 1%.
Market At Close | Market breadth favours advances with advance-decline ratio at 5:4
Market At Close | Sensex & Nifty recover to close flat; Banks underperform. Midcaps outperform frontliners with Midcap index up 0.6%
Market At Close | Here are the highlights from today’s trading session
- Sensex & Nifty Recover To Close Flat; Banks Underperform
- Midcaps Outperform Frontliners With Midcap Index Up 0.6%
- Nifty Slips 12 Points To 15,740 & Sensex 53 Points To 52,276
- Nifty Bank Falls 358 Pts To 35,086 While Midcap Index Gains 161 Pts To 27,043
- IT Stocks Support Market With Nifty IT Rising Over 1%
- Metals Remain Under Pressure; Hindalco, Tata Steel, JSW Top Losers
- Kotak Bank, HDFC, SBI, HDFC Bank Top Losers From Financials Space
- Piramal Ent Rises Over 10% After Citi Raises Tgt To `2,260
- Adani Power Continues The Gaining Momentum, Closes At Upper Circuit
- Petronet LNG & Bata Close With Minor Cuts Ahead Of Q4 Earnings
- Market Breadth Favours Advances With Advance-Decline Ratio At 5:4
Closing Bell | Indian benchmark equity indices ended marginally lower on Tuesday dragged by losses in banking and metal stocks amid mixed global cues. The Sensex fell 52.94 points, or 0.10 percent, to 52,275.57, while the Nifty ended 11.55 points, or 0.07 percent lower at 15,740.10. Broader markets outperformed the benchmarks as the Nifty Midcap100 and Nifty Smallcap100 closed over half a percent higher each.
Among sectoral indices, the Nifty Metal and Nifty PSU Bank fell over 1 percent each, while IT, pharma, auto, FMCG and realty sectors ended in the green. On the Nifty50 index, Hindalco Industries, Tata Steel, JSW Steel, Kotak Mahindra Bank and HDFC led the losses, while Tata Motors, Tech Mahindra, Bharti Airtel, IOC and HCL Technologies were the top gainers.
Birlasoft | The company has partnered with Regulativ.ai, to co-develop a new AI/ML-based cyber-regulatory reporting platform. The company believes that the Regulativ.ai platform fits well with its focus to grow the banking, financial services, and insurance segments, where cybersecurity is a key focus. In addition, as organizations across other regulated industries accelerate their digital transformation, cybersecurity becomes fundamental for future business resiliency. The stock price of Birlasoft rallied over 12 percent to hit a fresh 52-week high of Rs 384.90 apiece on the BSE.
CONCOR in talks with Indian Railways for 35-year lease agreement
Container Corporation of India (CONCOR) is working on a 35-year lease agreement with Indian Railways, V Kalyana Rama, CMD of the company, said on June 8. “We have not yet signed the agreement, the work is in progress. We are very hopeful that these things will happen,” he told CNBC-TV18 in an interview. The company intends to take the upfront loan amounting to Rs 3,500 crore for the lease with Railways. “When we do this as a corporate governance practice, we will inform the stock exchange and the investors that we are exploring the possibility,” he said. Read here.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
While the markets are facing resistance at higher levels, it has good support at 15,600 and as long as that is holding on a closing basis, the market trend remains bullish. Any intraday drop or correction can be utilized by traders to accumulate long positions on the index. 15,900-16,000 is a prospective target for the Nifty.
Yash Gupta Equity Research Associate, Angel Broking
Shyam Metalic IPO is set to open on 14th June 2021. Earlier it was announced that the IPO size would be Rs 1,109 crore comprising fresh issue of Rs 657 crore and Rs 452 crore of offer for sale by promoters/shareholders. There has been a reduction in IPO size to Rs 909 crore in which offer for sale by promoter group has been reduced from Rs 452 crore to Rs 252 crore. Comfortable liquidity position at promoter group level has been cited as the reason for the same. Additionally, favourable outlook for the industry might have compelled them to lower the offer the sale portion of the issue. We do not believe that this would have any negative implications for the issue. Looking at the rally in steel stocks and the company’s clean Balance Sheet, we have a positive outlook for the Shyam Metalic IPO.
Market Strategy: IIFL shares aggressive, moderate, and conservative portfolios
Indian indices have defied COVID-19 odds hitting multiple record highs in the recent sessions, ignoring the economic impact of the severe second wave of the pandemic. The investor sentiment also benefited from the upward movement of global peers buoyed by the recovery in the US economy. Back home, mid-cap and small-cap indices outperformed frontline indexes led by very strong interest among retail investors in the broader markets. Sharing its market strategy in a recent note, IIFL Securities has advised stock investors to pick select companies with strong fundamentals and a stable growth outlook. "As the current valuations are quite expensive, a risk-based asset allocation strategy can mitigate the risk that may arise due to the disconnect between pandemic’s impact and market movements," it said in the note. Read here.
Exclusive: Here's full list of 22 bad loans identified by banks for transfer to National ARC
Banks have identified Rs 82,496 crore worth of bad loans that could be transferred to the proposed National Asset Reconstruction Company (NARCL) in the first phase, CNBC-TV18 has learnt. These are across 22 large accounts, which have been 100 percent provided for by banks. Read full report here.
CCI Approves Heineken’s Stake Buy In United Breweries | The Competition Commission of India (CCI) has approved an additional stake buy in United Breweries by Heineken. CCI said the proposed transaction does not give rise to competition concerns regardless of the delineation of the relevant market for the purpose of this filing.
Market Watch: Shrikant Chouhan of Kotak Securities
- Buy Ashok Leyland with a stop loss of Rs 122 and a target price of Rs 150.
- Buy Aurobindo Pharma with a stop loss of Rs 950 and a target price of Rs 1,000.
Titagarh Wagons Q4FY21 | The company reported a net profit of Rs 0.8 crore as against a loss of Rs 8.9 crore, YoY. Revenue rose 4.3 percent to Rs 429.9 crore from Rs 412.3 crore, YoY. EBITDA fell 34.8 percent to Rs 20.2 crore from Rs 31 crore, while EBITDA margin decreased to 4.7 percent from 7.5 percent, YoY. Other income jumped to Rs 13.9 crore as against Rs 5.4 crore, YoY.
Should see consumption picking up with more relaxations coming in, says HPCL's MK Surana
The HPCL stock has been buzzing in trade as oil prices continue to rise. MK Surana, CMD, HPCL shared his outlook on the business, going forward. “In the month of May, fuel consumption was down as many states were locked down,” he said. “Monday onwards, relaxations have begun in many states; we should see consumption picking up,” he added. Compared to the consumption of last year’s April and May, this year’s has been higher. “In 2020, in the months of April and May, it was down by almost 50 percent vis-à-vis April and May of 2021, it is down to the extent of 26 percent as compared to the pre-COVID era,” he shared. Read here.
Suven Pharma Q4FY21 | The company's net profit rose 12.1 percent to Rs 83.2 crore from Rs 74.2 crore, while revenue was up 38.1 percent at Rs 262.5 crore against Rs 190.1 crore, YoY. EBITDA increased 18.4 percent to Rs 97 crore as against Rs 81.9 crore, while EBITDA margin contracted to 37 percent as against 43.1 percent, YoY.
Market Watch: Ajit Mishra, Religare Broking
- Buy Infosys at current levels with Rs 1,390 as the stop loss and Rs 1,450 as the immediate target.
- Buy BHEL at current levels with stop loss at Rs 71 and a target of Rs 85.
Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS
Nifty Smallcap 100 index hit a record high at open today, surpassing its January 2018 peak of 9656. Each of the other headline indices - Nifty 50, Nifty Next 50, and Nifty Midcap 100 - also touched new lifetime highs. While the shorter-term trend of Nifty remains positive, the intraday trend looks a tad overstretched. On intraday charts, the index has formed bearish divergence with price oscillators. This indicates that so long as today’s high is not surpassed, we may see a bit of price correction for a day or two before the up leg resumes again. On the downside, immediate support for the index lies at 15590.
Minda Corporation | The company has announced a joint venture with Republic of Korea’s INFAC Elecs Co. Ltd. to bring its range of Automotive Antenna Solution for the Indian automotive market. The partnership aims to capitalize on the opportunities for growth in automotive safety, connected & autonomous technologies.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The markets are seeing some selling pressure at higher levels which is normal. However, this does not alter the viewpoint that we are in bullish terrain and the markets are headed to higher levels. Since we are eyeing 16,000 as the next potential target, any dip or correction should be utilized to initiate long positions.
Emkay Global Financial Services on Punjab National Bank
We are raising FY22/FY23 earnings estimates, factoring in a moderation in NPAs/credit cost and transition to a lower tax regime, offset in part by DTA impact. We raise our target price to Rs 33 from Rs 29, mainly taking into account the earnings upgrade and revision in subs/investment value to Rs 7 from Rs 4. However, we retain sell and underweight in EAP due to continued concerns around the bank’s asset quality and its sub-par return ratios compared with other PSBs.
Hester Biosciences Q4FY21 | The company’s net profit jumped to Rs 9.7 crore from Rs 2.7 crore in a year ago period. Revenue increased 47.2 percent to Rs 64.2 crore from Rs 43.6 crore, YoY.