Stock Market Highlights: Indian equity indices, Sensex and Nifty ended lower Thursday dragged by heavy selling in metals and banking stocks. Broader markets ended lower with Nifty Midcap100 and Smallcap100 falling 1.23 percent and 0.53 percent. Sharp selling was seen in metals, banks, pharma and realty stocks, while Nifty IT and Nifty FMCG ended in the green.
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Ajit Mishra, VP - Research, Religare Broking
Markets extended Wednesday’s fall and lost half a percent, pressurized by weak global cues. The US Fed’s hawkish tone didn’t go well with the equity investors across the globe and we might see the overhang for a session or two. Going ahead, the focus would shift back to fundamentals and domestic factors viz. pace of vaccination drive, reopening by states, etc. Meanwhile, we reiterate our advice of keeping a check on naked leveraged positions and let the markets stabilize.
Sugandha Sachdeva, VP- Commodity & Currency Research, Religare Broking
The Indian rupee has witnessed a sharp depreciation of more than one percent in today’s trade owing to the strength witnessed in the dollar index and hawkish tone of the US Fed, which has dented the risk-on sentiments in the markets. With a faster than expected rise in inflation and swift recovery in the US economy, the US Fed has projected rate hikes and tapering of its massive bond-buying program sooner than expected, all of which bodes well for further strength in the greenback. Besides, the rise in crude oil towards two-year highs is also weighing on the local unit. In the near term, the path for the domestic currency looks skewed on the downside and we expect it to test levels of around 74.90 in the coming days.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd
An important event ended in the market yesterday, but today the market was neutral at the level of 15,550/51,700. This confirms that the market trend is strong and may reach the 15,900/52,800 or 16,000/53,100 level once again. Today, Technology stocks and Reliance gave strong support to the index, which allowed the Nifty to close at 15,700. The Nifty/Sensex could reach fresh levels on Friday if the indices don't close below the levels of 15,550/51,700. On an immediate basis, 15,770/52,500 and 15,850/52,700 levels would be major hurdles. Below the levels of 15,550/51,700, the Nifty/Sensex would gradually fall to 15,400/51,300 or in the worst-case scenario 15,300/51,000.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty fell due to the global event but contained its losses. Even the Asian markets clawed back post weak openings. However advance decline ratio in India remains severely negative for the second consecutive session. Nifty may fall some more to take support around 15,567 and then correct upwards. On rises, 15,750 may be difficult to breach sustainably in the near term. The fact that the big Fed announcement has passed by without any large damage to global indices means that there may not be a sharp downmove immediately and global markets may go back to their original trend soon; though the momentum on the upside may be weak till a fresh positive trigger emerges on the horizon.
Mohit Nigam, Head, PMS - Hem Securities
Benchmark Indices Indices declined marginally while recovering from the intra-day low in today’s session. Both Nifty and Bank Nifty are moving on a narrow range while stock-specific action continues. Metal stocks are under pressure from yesterday’s session after the news that China will soon release some base metals from state stockpiles. Profit booking seen in Gold Finance stocks as the gold price fell to over a 1-month low. Immediate support and resistance are intact at 15,600 and 15,850 for Nifty 50.
Sumeet Bagadia, Executive Director, Choice Broking
Technically, the index has confirmed the Evening Star candlestick pattern at the top of the trend which suggests correction in the counter. Moreover, the index has given closing below 21 SMA & Middle Bollinger Band formations, which indicates further bearishness for the near term. In addition, a momentum indicator RSI (14) & Stochastic witnessed a negative crossover on the daily time frame. At present, Nifty has immediate support at 15,550 levels, whereas 15,900 may act as a crucial resistance zone.
Rupee At Close | The rupee ended at down 76 paise at 74.08 per dollar against the previous close of 73.32. The local currency opened at 73.67 per dollar and remained in the range of 73.57-74.08 during the day.
Market At Close | Except Federal Bank & Kotak Bank, all Nifty Bank constituents close lower.
Market At Close | Market breadth favours declines; advance-decline ratio at 1:2
Market At Close | Market closes lower amid volatility after ‘Hawkish’ commentary from Fed. Broader markets underperform Sensex & Nifty; Midcap index & Nifty Bank down 1% each.
Market At Close | Here are the highlights of today’s trading session
- Market Closes Lower Amid Volatility After ‘Hawkish’ Commentary From Fed
- Broader Mkts Underperform Sensex & Nifty; Midcap Index & Nifty Bk Down 1% Each
- Sensex Falls 146 Points To 52,356 & Nifty 76 Points To 15,691
- Nifty Bank Slips 398 Pts To 34,605 & Midcap Index 332 Pts To 26,776
- Adani Group Remains Under Pressure With Stocks Falling 5-9%
- IT Stocks Gain In A Weak Trading Session As Rupee Slips Against US Dollar
- Except Federal Bank & Kotak Bank, All Nifty Bank Constituents Close Lower
- Max Finance Promoter Pares 2% Stake In Co; Stock Closes Off Highs
- Thyrocare In Focus On reports Of PharmEasy Eying A Stake In Co
- Gujarat Gas, UBL, ICICI Pru & Balkrishna Ind Amongst Top Midcap Gainers
- Indiabulls Hsg, M&M Fin, Ashok Leyland, REC, JSPL Top Midcap Losers
- Market Breadth Favours Declines; Advance-Decline Ratio At 1:2
Closing Bell | Indian equity benchmark indices ended lower Thursday dragged by heavy selling in metals and banking stocks. The Sesex fell 178.65 points, or 0.34 percent to 52,323.33, while the Nifty closed 76.15 points, or 0.48 percent lower at 15,691.40. Broader markets ended lower with Nifty Midcap100 and Smallcap100 falling 1.23 percent and 0.53 percent. Among sectors, Nifty Metal fell the most over 2 percent followed by Nifty PSU Bank, Nifty Auto, Nifty Realty and Nifty Financial Services that fell over 1 percent each. Gains were seen in IT and FMCG sectors. On the Nifty50 index, Adani Ports & SEZ, Hindalco Industries, IndusInd Bank, Eicher Motors and NTPC led the losses, while UltraTech Cement, TCS, Infosys, Asian Paints, and Tech Mahindra were the top index gainers.
Nickel declines 8% from 2021 highs; expect near-term demand-supply imbalance to impact prices
It is the fourth straight day of decline in metal prices. However, there is some opportunity buying seen in metals like aluminium, lead, and zinc. Two metals which have continued to decline is copper and nickel. Copper is trading at a new 2-month low and reports suggest that near term demand and supply imbalance is putting pressure on nickel prices. Nickel prices have come off nearly 8 percent from its 2021 highs. From a high of nearly $19,300/tonne, it is trading below $17,500/tonne. However, the long term outlook is still strong on the back of electrical vehicle demand. According to a Nornickel report, 2021 will see a surplus of 52,000 tonne which is less than the earlier estimate of 90,000 tonne. Watch here.
Sputnik V pilot in final leg; scaled up to other cities: Dr Reddy's
Dr Reddy's Laboratories which has soft-launched Russia's COVID-19 vaccine Sputnik V here has expanded the pilot which is in the final leg to other cities such as Mumbai, Bangalore, and New Delhi. Presently it is being a limited pilot phase, registration on CoWIN not open for the public and will become open once the commercial launch is commenced, a press release from Dr Reddy’s said on Wednesday. Read here.
Consolidated gross debt reduced to Rs 180 crore; no intent to merge with Allcargo: Gati
Gati’s stock has been buzzing in trade and is up 40 percent in the last one month and up 55 percent year-to-date (YTD). The company has seen revenues drop in the past three months owing to COVID-19, but is expecting recovery June onwards. Rohan Mittal, CFO and Chief Transformation Officer of the company, said that the B2B market saw a dip in volumes in Q1, but is confident of double-digit growth in FY22 on an overall basis. “The B2B market saw a dip in volumes predominantly because of the lockdown in various parts of the country. Since our biggest exposure is to the B2B market and not to the B2C market, our volumes have also seen a dip in April and May,” he told CNBC-TV18. Read here.
Emkay Global on L&T Infotech
Cuelogic acquisition will be integrated with L&T Infotech's (LTI) Digital practice, which is a focus area for LTI. The acquisition will augment its domain capabilities. Given the size of the acquisition (<0.5% of LTI's revenue), we do not expect any meaningful revision to our earnings forecasts. We have a Sell rating on the stock with a TP of Rs 3,550 (24x FY23E EPS).
India rupee at six-week low; bond yields rise after hawkish Fed signal
The Indian rupee weakened to its lowest level since early May on Thursday while bond yields rose as the US Federal Reserve stunned investors by signalling it might raise interest rates as early as 2023, faster than assumed. The partially convertible rupee was trading at 73.79/80 per dollar compared with its close of 73.3225, after touching 73.83, its lowest since May 6. India's benchmark 10-year bond yield was down 1 basis point at 6.04% but most other bond yields rose 3-4 basis points tracking the US benchmark bond yield which jumped 7.5 basis points.
Taper talk, accommodative stance not good for the markets: Dron Capital's Pathik Gandotra
As the Federal Reserve takes initial steps toward removing its massively accommodative policy, investors are preparing for the main show ahead. Fed officials on Wednesday pencilled in two potential rate hikes in 2023, sooner than policymakers had previously projected, and Chair Jerome Powell edged closer to unveiling plans to taper the Fed's $120 billion a month of bond purchases, as per a Reuters report. Pathik Gandotra, Partner at Dron Capital spoke to CNBC-TV18 to discuss the fundamentals of the market in light of this. Read here.
DHFL lenders to consider redistribution of funds after NCLT suggestion to increase payout to small investors
The committee of creditors (CoC) for Dewan Housing Finance Ltd (DHFL) will hold its first meeting on Thursday since the National Company Law Tribunal (NCLT) cleared Piramal Group’s resolution plan for the company. Several people in the know confirmed the development to CNBC-TV18. The CoC meet comes after the NCLT suggested that lenders consider a higher payout to small creditors of DHFL, including the Fixed Deposit holders who had voted against the plan. Read here.
Market Update | Market slips to day's low. Broader markets underperform Benchmark indices
Lupin Receives USFDA nod for Sevelamer Hydrochloride Tablets
Lupin has received approval for its Sevelamer Hydrochloride Tablets, 400 mg and 800 mg from the United States Food and Drug Administration to market a generic equivalent of Renagel® Tablets, 400 mg and 800 mg, of Genzyme Corporation. The product will be manufactured at Lupin’s facility in Nagpur, India. Sevelamer Hydrochloride Tablets are indicated for the control of serum phosphorus in patients with chronic kidney disease (CKD) on dialysis.
IPO-bound PharmEasy in talks to buy stake in Thyrocare
IPO-bound PharmEasy is in talks to buy stake in diagnostics services provider Thyrocare, sources with direct knowledge of the matter have told CNBC-TV18. The lack of succession options at Thyrocare could be a key reason for the founder and chairman - Dr Velumani to sell stake in the company, as per people in the know. Moreover, the current valuations are rewarding. Promoters held 66.14 percent stake in Thyrocare as of March 31, 2021. It is also gathered that Dr Velumani may even look at investing in API Holdings as part of the deal. Read here.
Metal stocks continue to fall as China plans to tackle high commodity prices
After China announced intentions to release industrial metals from its national reserves to restrain commodity prices, metal stocks continued to slump on Thursday, with the Nifty Metal index down nearly two percent. The Nifty Metal index fell for the fourth straight day dragged by Hindalco Industries, Hindustan Zinc, Jindal Steel & Power, Coal India, among others that were down over one to two percent each. The metal index has fallen around 3 percent this week. The National Food and Strategic Reserves Administration in China said it would release batches of metals like copper, aluminium, and zinc to nonferrous processing and manufacturing firms “in the near future” via public auction. Read here.
Export orderbook of Rs 1,300 crore in the pipeline: RITES
RITES posted its Q4FY21 earnings. There has been a decent recovery in revenue but higher purchases for exports led to a weak profit figure. Rajeev Mehrotra, CMD of RITES, discussed the performance. The company is starting this year with a strong orderbook of Rs 6,224 crore. The export orderbook of Rs 1,300 crore, which is in the pipeline, is an important highlight. “This will give us strong visibility in FY22. We should be able to report a reasonable growth on 2019-2020 numbers, 2020-2021 has been a difficult year, so we will calculate growth on 2019-2020 numbers,” he said. Read here.
Analjit Singh’s promoter entity sells 2% stake in Max Financial via block deal: Source
Analjit Singh’s promoter entity has sold 2 percent stake in Max Financial Services to a leading marquee investor in a block deal, sources said. A Singapore based leading sovereign fund was a buyer in the block deal and the promoters have raised approximately around Rs 700 crore, according to sources. This money will be used to reduce the pledged shares of the promoter entity as well as for reducing the debt at the personal level. The sponsor spokesperson of the Analjit Singh family group confirmed the deal in an official email to CNBC-TV18. “We confirm that we have sold a minor stake in MFSL earlier today to a highly pedigreed investor. We have seen immense interest in the investor community for MFSL’s underlying life insurance business,” the spokesperson said in the email.