Stock Market Highlights: Indian equity indices, Sensex and Nifty ended higher Monday boosted by a rally in IT, banks, auto and FMCG sectors. Broader markets outperformed the benchmarks as the midcap and smallcap indices closed over a percent higher each. Metal, pharma, realty and financial services sectors ended in the red.
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Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty has once again closed at an all-time closing high accompanied by a sharply positive advance-decline ratio. High volumes on a positive day is good news. The continued flow of positive news on the COVID front could help sustain this upward momentum. 15,630-15,840 is the new band for the Nifty for the near term.
Ajit Mishra, VP - Research, Religare Broking
Markets started the week on an optimistic note amid supportive global cues. The benchmark traded with positive bias throughout the day and healthy buying was seen across sectors. Further, the news of a steady fall in new COVID cases and announcements of easing in restrictions by several states boosted sentiment. All eyes are on PM Modi’s speech scheduled in the evening, for details on the vaccination drive and the roadmap for further ease in restrictions. And, we may see the reaction of the same in early trade tomorrow i.e. June 8.
On the benchmark front, we feel the recent underperformance from the banking space is certainly weighing on the sentiment and might trigger some profit taking too. However, buoyancy in other sectors viz. energy, IT and auto would cap the fall. Amid all, we advise continuing with bullish bias and use dips to add quality names.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research
The market witnessed some lackluster movement and an attempt to hold the support level around 15,700. Trading above 15,700 is positive from a short-term perspective. Sustaining above 15,700 levels, the market expects to gain momentum, leading to an upside projection till 15,870-15,900 level. The momentum indicators like RSI and MACD supporting the trend and indicating potential upside from the current market level
Sumeet Bagadia, Executive Director, Choice Broking
Nifty has been trading in Higher Highs & Higher Lower formation, which suggests a continued upside move in the index. Moreover, the index has been trading continuously above the Ichimoku Cloud formation, which confirms that the bullish trend may continue for the long term. A momentum indicator MACD is also trading with a positive crossover as well as above the zero lines. At present, the nifty seems to have resistance at around 15,850 levels while immediate support shifted up to 15,650 levels.
Mohit Nigam, Head, PMS - Hem Securities
Benchmark Indices closed on a positive note with both the indices at record closing highs. Strong buying is witnessed in Utility, Media, Power and IT stocks whereas selling is seen in some of the financial and pharma stocks. Sustaining above 15,700 levels is positive for Nifty 50 which opens the gate for 16,000 in Nifty 50. Immediate resistance levels for Nifty50 are 15,850 and 16,000 while key support levels for Nifty 50 are 15,500 and 15,300.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The Nifty continues to rally up and seems to be heading to its next target which is 16,000. It has good support at 15,500-15,600 and as long as that is not disrespected on a closing basis, the trend continues to remain bullish and traders can accumulate long positions for higher targets.
Manish Shah, Founder, www.Niftytriggers.com
Nifty had a bit of volatile movement as the index dipped to 15,680 and moved higher for the day. It was a good start for the bulls after the market closed on a strong note the previous week. The weekly R1 pivot is placed at 15,810 and above that, the next R2 pivot is at 15,960. A break above 15,810 and expect the market to move higher towards 15,960-16,000. Nifty continues to move higher with regular but small increments. This sort of slow uptrend is a character of a market in a strong trend. Nifty is in a strong momentum as the ADX curves up and MACD is in a buy mode. This is a combination of a sustained uptrend in the index. Slow creeping uptrends can last a fair bit of time and markets can remain elevated for a long time. Nifty rally could continue for some time and the preferred trades should be on the long side of the market.
Market At Close | Market breadth favours advances; Advance-Decline ratio at 5:2
Market At Close | Power utilities surge on unlock theme with NTPC & Power Grid rising 4% each. Midcap utiltiies gain too; Adani Power at upper circuit, Torrent up 7%, Tata up 5%
Market At Close | Market starts week on a positive note; Sensex & Nifty at record closing highs. Midcaps outperform large caps; Midcap index post record close.
Rupee At Close | The Indian rupee ended 19 paise higher at 72.84 per dollar amid buying in the domestic equity market. The local currency opened 15 paise higher at 72.85 per dollar versus Friday’s close of 73 and traded in the range of 72.74-72.88.
Market At Close | Here are the highlights of today’s trading session
- Market Starts Week On A +ve Note; Sensex & Nifty At Record Closing Highs
- Midcaps Outperform Large Caps; Midcap Index Post Record Close
- Sensex Rises 213 Points To 52,313 & Nifty 81 Points To 15,752
- Nifty Bank Gains 152 Pts To 35,444 & Midcap Index 330 Pts To 26,881
- Reliance, TCS & ICICI Lift Nifty While Bajaj Fin, HDFC & Bajaj Finserv Drag
- Bajaj Fin & Bajaj Finserv Slip After Bajaj Fin Reduces FY22 Growth Guidance
- Power Utilities Surge On Unlock Theme With NTPC & Pwr Grid Rising 4% Each
- Midcap Utiltiies Gain Too; Adani Pwr At Upper Circuit, Torrent Up 7%, Tata Up 5%
- Stocks Like IRCTC, PVR Surge With States Announcing Phase-wise Unlock
- TVS Motor Gains Over 4% After 5% Equity Worth `1,400 Exchanged
- Adani Ent Snaps Gaining Streak, Closes 5% Lower Today
- MRF Slips 3% After Reporting Lower-than-expected Operating Numbers
- Market Breadth Favours Advances; Advance-Decline Ratio At 5:2
Closing Bell | The Indian equity market ended higher Monday boosted by a rally in IT, banks, auto and FMCG sectors. The Sensex surged 228.46 points, or 0.44 per cent to end at 52,328.51, while the Nifty closed 81.40 points, or 0.52 percent higher at 15,751.65. Broader markets outperformed the benchmarks as the Nifty Midcap100 gained 1.24 percent and Nifty Smallcap100 closed 1.56 percent higher.
Among sectors, Nifty IT gained the most followed by Nifty Private Bank, Nifty MFCG and Nifty Auto, while metals, pharma, realty and financial services sectors ended in the red. On the Nifty50 index, Adani Ports, PowerGrid Corporation, NTPC, Tata Motors and UltraTech Cement gained the most while Bajaj Finance, Bajaj Finserv, HDFC, Divi’s Laboratories and Cipla led the losses.
ICICI Pru Life announces highest-ever bonus of Rs 867cr for policyholders in FY21
ICICI Prudential Life Insurance on Monday declared its highest-ever annual bonus of Rs 867 crore for the policyholders for FY21. “ICICI Prudential Life Insurance has announced an annual bonus of Rs 867 crore for all eligible participating policyholders for FY2021. The bonus declared is the highest ever by the company till date and is also 10 percent higher than the bonus announced in the last fiscal” it said in a release. Read here.
India’s bank privatisation plans could face hurdles amid COVID
The Indian government’s plan to privatise two state-owned banks in the current financial year (FY22, ending March 2022) could face delays amid renewed challenges for the Indian banking sector, says Fitch Ratings. The bold move to privatise state-run banks faces risk from political opposition and structural challenges including heightened balance-sheet stress due to the Covid-19 pandemic, which is likely to keep bank performance subdued for the next two to three years.
Fitch believes that political support in favour of legislative changes to the Act, which are required in order to go through with the sale, could be a significant hurdle for the government. There could also be more resistance from the trade unions this time around, who will be against the safety-net withdrawal of state ownership. Success of the plan would also require sufficient interest from investor(s) willing to acquire large stake(s) in state-owned banks and run them, Fitch said.
Emkay Global Financial Services on Larsen & Toubro
Strong order book, better prospects and great execution capabilities all point to L&T (ex IT/Fin/Dev. Projects) returning to mid-teen earnings growth. We expect 15% EPS CAGR over FY21-FY24E - similar to FY15-FY20. We expect centre and state capex to see a rebound after Covid second wave, similar to what happened last year, Emkay Global said. The brokerage firm assumes coverage on L&T with a Buy rating and target price of Rs 1,770 (June’22E). Improving core ROIC, strong & clean order book, increased opportunities in Renewables, Steel and Cement apart from Rail, Expressways and Water bode well for future trajectory it said.
DHFL’s asset fairly undervalued but positive for Piramal Group, says Dimensions Corp’s Ajay Srivastava
The Mumbai bench of the National Company Law Tribunal (NCLT) on Monday accepted the Piramal Group’s resolution plan in the Dewan Housing Finance Ltd (DHFL) case with a few conditions. The bench rejected Kapil Wadhawan’s plea to get access to a copy of the resolution plan. NCLT also asked the Committee of Creditors to consider giving more money to small FD holders under the approved resolution plan. Ajay Srivastava, CEO of Dimensions Corporate Financial Services said that it is a great news, but the asset is undervalued by a fair degree. "I think it is a great thing because it has been almost 2 years that this has been going on. I must say only one thing on behalf of shareholders and the lenders, I think there has been a very poor job marketing of this thing. It is a very cheap price at which Piramal is getting it. So, it is a great positive for them (Piramal). But it is a good closure to the saga,” he said in an interview to CNBC-TV18. Read here.
Inflow in commodity hedge funds continues to remain high for Jan-Mar 2021
The latest data from Hedge Fund Research shows a huge money inflow continuing in commodities. It says that the money inflow in commodities and the percentage increase/return has been higher than the average hedge funds. The January to March 2021 period has seen inflows of USD 492 million. This is much higher and much better than the kind of outflows seen from January to March between 2016 and 2019. Also, indications suggest that April and May 2021 have also seen net inflows continue. Also, a Goldman Sachs report indicates that commodities are no longer China-centric and China no longer benefits from the low-cost labour and environmental indifference. Read here.
Buzzing | Central Bank of India, IOB shares jump on reports lenders may be considered for privatization
Shares of Central Bank of India and Indian Overseas Bank rallied on Monday after reports said that the government may divest its stake in these lenders as part of its privatisation initiative. The share price of Central Bank of India jumped over 14 percent, while that of Indian Overseas Bank rose over 11 percent. Government think tank NITI Aayog has recommended these two banks for disinvestment, a report by The Times of India mentioned, citing sources. It added that Bank of India (BoI) may also be a potential candidate for sale. According to the report, the NITI Aayog proposal is being examined by the disinvestment and financial services departments. Read here.
Central Bank of India Q4FY21 | The bank reported a net loss of Rs 1,349.2 crore as against a loss of Rs 1,529.1 crore, YoY. Net Interest Income (NII) fell 21.3 percent to Rs 1,516.4 crore from Rs 1,925.8 crore, YoY. Provisions were at Rs 3,130 crore versus Rs 743.7 crore, QoQ, and versus Rs 2,178.3 crore, YoY. Gross NPA fell to 16.55 percent from 18.19 percent, while Net NPA decreased to 5.77 percent from 6.58 percent, QoQ.
Market Watch: Ruchit Jain, Angel Broking
- Buy Hero MotoCorp with a stop loss of Rs 3,005 and a target of Rs 3,140.
- Buy Century Textiles with a stop loss of Rs 508 and a target of Rs 550.
Buzzing | Varroc Engineering shares decline over 10% as net loss widens in Q4
The share price of Varroc Engineering declined over 10 percent on Monday after the company reported weak earnings for the March quarter. The firm's consolidated loss widened to Rs 144 crore from Rs 137 crore reported last year during the same quarter. Net sales, however, jumped 31.9 percent to Rs 3,619.26 crore in Q4 FY21 from Rs 2,744.75 crore in Q4FY20. EBITDA margin contracted 70 bps to 3.5 percent from 4.2 percent in the year-ago quarter. The stock fell as much as 10.5 percent to its day's low of Rs 387.30 per share on the BSE. Read here.
Dollar edges up, recovering from jobs miss
The dollar edged up as European markets opened on Monday, recovering from Friday's drop on U.S. jobs data which was below expectations. There was little risk appetite in currency markets in early trading, as equities dipped amid caution in global markets ahead of U.S. inflation data and the European Central Bank meeting, both on Thursday. The dollar index was up 0.2 percent on the day at 90.283. The euro was down 0.2 percent against the dollar, at $1.21465.