Stock Market Highlights: The Indian equity indices, Sensex and Nifty ended lower Wednesday dragged by broad-based selling in metals, IT and financial stocks. Broader markets, midcap and smallcap indices also declined. Barring Nifty Auto, all other sectoral indices closed in the red with metal, IT, private bank and pharma indices falling the most.
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Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty formed an engulfing pattern on daily charts which is bearish for the near term. 15,840-15,900 remains a tough resistance to breach as has been seen over the past 7 odd sessions. On falls so far 15,675 has provided support; but now the figure could shift to 15,451-15,560. Low volumes continue to suggest low trading interest due to low volatility in largecap and midcap space. This is despite individual stocks showing momentum on successive days.
Ajit Mishra, VP - Research, Religare Broking
Markets traded lacklustre and lost nearly half a percent, in absence of any major trigger. We’re currently seeing a time-wise correction in the market and it’s likely to end soon. The scheduled monthly expiry of the June month contracts combined with AGM of index heavyweight, Reliance, will keep the participants busy on Thursday i.e. June 24. We reiterate our advice to continue with the “buy on dips” approach until we see some sign of exhaustion or trend reversal.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The Nifty continues to witness selling pressure at higher levels. Today was no different and we again resisted closer to the 15,900 levels. A buy-on-dips approach would be the most prudent way to trade this market. Strong support lies at 15,400 and until that does not break, we can accumulate long positions for a target of 16,000-16,100.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
The market witnessed a roller coaster ride, as it opened higher but lost momentum thereafter to close at the lowest point of the day. This could be due to the monthly & quarterly F&O contracts expiry and the AGM of Reliance Industries on Thursday. India Vix jumped and the Nifty/Sensex settled on the support of the 20-day SMA, which is at 15,670/52,250. The Nifty/Sensex was expected to find support between 15,670/52,300 and 15,700/52,400 levels but volatility was unimaginable. On Thursday, the markets would be a trading range of 15,800/52,800 and 15,550/51,700 levels. Below 15,670/52,250, the Nifty/Sensex would quickly drop to the level of 15,550/51,700. On the other hand, if the Nifty/Sensex trades above 15,670/52,250, then the market would move to the level of 15,800/52,800. One should be a level based trader.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short term trend of Nifty is weak with range bound action. The overall market breadth and broad market indices are showing resilience compared to benchmark Nifty. The present weakness is expected to be over in the next 1-2 sessions and the market could bounce up again from the lows. Immediate support is placed at 15,600 levels.
Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services
The USDINR spot is following the trend in dollar. Fed Powell downplaying the threat of tapering is not weighing on the spot, rather Fed rate hike worries have kept all the dollar bulls active. So until the spot tries above 73.75-73.80, it will remain afloat with immediate resistance around 74.50 and then 74.75 zone. While the major supports lies around 73.75-73.50-73.45.
Manish Shah, Founder, www.Niftytriggers.com
Nifty dropped marginally as the index struggled to move above the resistance at 15,900 for the second day in a row. It was a long red candle for the day as Nifty that closed at the low of the day. This shows that the underlying strength is still intact. The range-bound action in terms of Dow theory is a line and mostly this acts as a continuation pattern. We interpret this range-bound action as a time-based correction. Price action does show a loss in momentum in the last couple of sessions. Nifty hits the rising moving average line and there is rising trendline that is likely to get hit around 15,650-15,610 area. This is going to be best area to get on board going into July series. Most likely June expiry will hold below 15.800. Buying Nifty around the support at 15,650-15,610 could be the best opportunity to get on the long side going into the month of July. A break above 15,900-15,950 will eventually take Nifty higher to 16,200-16,300 in the weeks to come.
Rupee At Close | The Indian rupee ended marginally higher at 74.27 per dollar, amid volatility in the domestic equity market. The local currency opened 10 paise higher at 74.26 per dollar versus the previous close of 74.36 and traded in the range of 74.16-74-39.
Market At Close | Market breadth in favour of declines; advance-decline ratio at 2:3
Market At Close | Financials, IT & Reliance drag market while autos support
Market At Close | Market closes with cuts on weekly expiry day. Sensex slips 313 points to 52,275 & Nifty 86 points to 15,687; Nifty Bank falls 171 points to 34,574 & Midcap Index 57 points to 26,67
Market At Close | Here are the highlights of today’s trading session
- Market Closes With Cuts On Weekly Expiry Day
- Sensex Slips 313 Points To 52,275 & Nifty 86 Pts To 15,687
- Nifty Bank Falls 171 Pts To 34,574 & Midcap Index 57 Pts To 26,676
- Reliance Ind Weak Ahead Of Its AGM, Ends 1% Lower
- Financials, IT & Reliance Drag Market While Autos Support
- Adani Stocks Under Pressure; Adani Ports & Adani Ent Down 3% Each
- BEL Surges 11% On Strong Outlook & Plan For Lithium Ion Battery Plant
- UBL Falls More Than 3% After Heineken’s 15% Shr Buy Via Block Deal
- Hero Closes In The Green But Off Highs After Price Hike Announcement
- Maruti Extends Tuesday’s Gains, Up 7% In Last Three Sessions
- Market Breadth In Favour Of Declines; Advance-Decline Ratio At 2:3
Closing Bell | The Indian equity benchmark indices ended lower Wednesday dragged by selling across the board. The Sensex fell 282.63 points, or 0.54 percent, to 52,306.08, while the Nifty ended 85.80 points, or 0.54 percent, lower at 15,686.95. Broader markets, midcap and smallcap indices also declined for the day.
Barring Nifty Auto, all other sectoral indices closed in the red with metal, IT, private bank and pharma indices falling the most. Adani Ports & SEZ, Wipro, Divi’s Laboratories, Shree Cement and JSW Steel were the top Nifty50 losers, while Maruti Suzuki, Titan Company, Bajaj Finserv, M&M and ONGC were the top index gainers.
IRDAI asks insurers to expand coverage for home care treatments
Insurance Regulatory and Development Authority (IRDAI) has asked general and health insurers to expand coverage for home care treatments as an add-on to the existing policies. The premium of which could be 15-20 percent higher than the normal premium. It was just last year in June 2020 when the insurance regulator had said that home care treatment and Ayush treatment is something that should be considered in terms of claims when it comes to the COVID treatment. Read full report here.
Yash Gupta Equity Research Associate, Angel Broking
Cipla Ltd announced that the company has received final approval for its Abbreviated New Drug Application (ANDA) for Arformoterol Tartrate Inhalation Solution from the United States Food and Drug Administration (US FDA). Cipla’s Arformoterol Tartrate Inhalation Solution is AN-rated generic therapeutic equivalent version of Sunovion Pharmaceuticals Inc.'s Brovana. Brovana® is a long-acting beta-2 adrenergic agonist indicated for administration in the maintenance treatment of bronchoconstriction in patients with chronic obstructive pulmonary disease (COPD), including chronic bronchitis and emphysema.
We believe that this is an important product approval for Cipla and it will increase its exposure to USA sales from FY2022 itself as the product is ready to be shipped immediately. In the last 12 months, sales of Brovana are around ₹438M as per the IQVIA data and Cipla will launch the generic version of it immediately, so we expect Cipla to have a good opportunity to take market share for Brovana. We have a positive outlook for Cipla.
HDFC Securities on Ashoka Buildcon
We maintain Buy on the stock, given low leverage (net D/E of ~0.1x) and comfortable liquidity position. Potential monetisation of HAM/BOT assets and diversification of the order book could be positive triggers for the stock. We tweak our FY22/FY23 estimate to account for impact from higher commodity prices and recovery in toll collections. We roll forward our SOTP- based target price to FY23 and increase it to Rs 175 per share vs Rs 168 per share earlier.
Likely to achieve 4-figure revenue in FY22, says MM Forgings
MM Forgings posted record revenue of Rs 293.36 crore in the fourth quarter of fiscal 2021 and now expects to cross the four-figure revenue in FY22. Speaking to CNBC-TV18, Vidyashankar Krishnan, Vice Chairman and Managing Director of MM Forgings said that subject to COVID and the economy, the company expects to cross sales volumes of 60,000-65,000 tonnes this year. “The company did record revenues in Q4FY21 of almost Rs 300 crore. In March, we crossed Rs 100 crore mark which is watershed number as far as MM Forgings is concerned. Over the next year, if we are able to extrapolate this on an annualised basis, you can see where we are heading,” he said. The company is looking at a very strong US truck market. Europe truck market has been pretty stable right through the COVID, he added.
Order book back to pre-COVID levels; pickup expected in Q3-Q4FY22: SP Apparels
SP Apparels’ order book is back to pre-COVID levels, P Sundararajan, CMD, told CNBC-TV18. The company reported earnings for the March-ended quarter and is a leading manufacturer and exporter of knitted garments for infants and children in India. “Our current order book is Rs 250 crore which is as usual and definitely there is a huge demand especially for baby products out of India because India is seen positive in terms of the export market. Therefore, we are very optimistic and look forward to a great business in the coming quarters,” Sundararajan said. Read here.
Comfortably placed with capitalisation; will be able to transfer Rs 20K crore to NARCL: SBI chairman
State Bank of India (SBI) is comfortably placed as far as capitalisation is concerned, Dinesh Kumar Khara, chairman, told CNBC-TV18. The Bank has taken permission from the board to raise Rs 14,000 crore of tier-one capital by issue of Basel-III compliant bonds. “As of now, we are comfortably placed when it comes to capital adequacy ratio (CAR), which is around 13.74 percent, but we have got some maturities coming up in AT1 & tier-two bonds in the current year, which are in the range of Rs 9,000 crore, but it is more of an enabling approval from the board. We will certainly be looking at raising tier-one capital during the current year,” Khara said. On National Asset Reconstruction Company Ltd (NARCL), which is going to be set up by June 30, he said, “As far as the NARCL is concerned, as per the structure, the banking system is required to transfer accounts that are fully provided for and which are up the threshold level of Rs 500 crore. SBI will be able to transfer around Rs 20,000 crore to NARCL.” Read here.
Precision Wires Q4FY21 | The company's net profit rose 22.6 percent to Rs 16.7 crore from Rs 13.6 crore, while revenue increased 25.2 percent to Rs 652.7 crore from Rs 521.2 crore, YoY. EBITDA rose 19.7 percent to Rs 29.9 crore as against Rs 24.9 crore, while EBITDA margin was at 4.6 percent against 4.8 percent, YoY.
Dabur India | The company will set up a new plant in Madhya Pradesh with an investment of Rs 550 crore for the manufacturing of food products, ayurvedic medicines & health products.
IIFL Securities and Stockal partners to capture the growing millennial investor base in India
IIFL Securities has partnered with Stockal, global investment platform, to help customers have access to 3500+ US-listed companies, invest in fractional stocks, and expert-curated Stacks & ETFs. This partnership will help attract USD 75 to 100 million worth of cross border investments from Indian investors in the next 12 months, the brokerage house said.
CLSA on IndusInd Bank
IndusInd Bank (IIB) has been on a transformative journey by de-bulking corporate book/fees and increasing granularity of its liabilities. The bank’s hit from wave-1 at less than 300 bps of core credit costs was better than our expectations, leading to our upgrade. Wave-2 impact looks manageable with potentially higher stress in MFI but low corporate stress and some CV/SME portfolio restructuring. Liability de-bulking continues, but unlike FY21, IIB intends to reduce its cost of deposit gap with peers in FY22, which should help offset any yield pressures from the lowering risk in the book. We expect IIB to deliver +15% ROEs by FY23/24CL; valuations at less than 1.5x FY23 book are reasonable, in our view. Reiterate BUY rating with a price target of Rs 1,325 per share.