KEY HIGHLIGHTS
Rupee Weakens Against US Dollar
-The local currency weakened by 15 paise to close at 83.46 against the US dollar.
-It closed at 83.31 on Thursday.
Source: Bloomberg
Sensex, Nifty Break Five-Day Losing Streak But End Week Lower: Closing Bell
Benchmark equity indices erased most of their early losses to end marginally higher ahead of India's GDP release due later in the day. On a weekly, basis the Nifty recorded its worst fall since the week ended May 10.
The Nifty ended 0.19% or 42.05 points higher at 22530.70 points while the Sensex closed 0.10% or 75.71 points higher by 73961.31.
"Regional diversions, marginally low voter turnout and strong resistance at current range are prompting investors to adopt a cautious stance," said Vinod Nair, head of research at Geojit Financial Services." They are aligning their investments towards fundamentally strong sectors & stocks to safeguard against any abrupt reactions in the market."
On the global front, he added that the release of inflation data from the US, which are estimated to be high, could sway global market sentiment in the near-term.
Shares of HDFC Bank Ltd., Adani Enterprises Ltd., ICICI Bank Ltd., Larsen & Toubro Ltd., and Adani Ports and Special Economic Zone Ltd. contributed the most to the gains.
While those of Infosys Ltd., Tata Consultancy Services Ltd., Maruti Suzuki Ltd., Hindustan Unilever Ltd., and Bharti Airtel Ltd. capped the upside.
Most sectoral indices ended higher with Nifty Realty and Nifty Metal leading.
The broader markets were higher as the BSE MidCap closed 0.06% higher and the BSE SmallCap ended 0.76% higher.
Six out of the 20 sectoral indices on the BSE fell. Utilities rose the most and Information Technology was the top loser.
The market breadth was skewed in the favour of sellers. Around 1,978 stocks declined, 1,845 rose, and 92 remained unchanged on the BSE.
Weekly Performance
This week, the Nifty lost 1.86%.
Rupee Weakens Sharply Against U.S. Dollar
Intraday, the local currency weakened by 15 paise to 83.46 against the U.S dollar.
It closed at 83.31 on Thursday.
Source: Exchange Filing
Adani Group Stocks Rise
Canara Bank Board Approves Fundraise
Board approves raising up to Rs 8,500 crore via debt instruments for FY25
Source: Exchange Filing
Cochin Shipyard Unit Gets Order From Adani Harbor Services
Unit gets order in the range of Rs 100-250 crore from Adani Harbor Services unit
Order from Adani unit for constructing 3 tugs of 70 T bollard pull power
Source: Exchange filing
Zomato Shares Slip As Macquarie Notes Competition For Blinkit Heating Up
Shares of Zomato Ltd. fell to their lowest level in over two months after Macquarie noted JioMart's entry into quick commerce business might weigh on the performance of Blinkit.
The brokerage continues to see downside to consensus forecasts and margins for Blinkit, with rising competitive intensity despite a large potential total addressable market.
Shares of the company fell as much as 5.18%, the lowest level since March 22, before paring loss to trade 3.9% lower at Rs 173.65 apiece, as of 12:40 p.m. This compares to a 0.16% advance in the NSE Nifty 50.
The stock has risen 40.3% year-to-date and 151.41% in the last 12 months. Total traded volume so far in the day stood at 0.95 times its 30-day average. The relative strength index was at 34.79.
Out of 27 analysts tracking the company, 24 maintain a 'buy' rating, one recommends a 'hold,' and three suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 27.4%.
India Unusual In Terms Of Extremes Seen On Fiscal Metrics
Higher growth numbers will also help stabilise other rating metrics including fiscal metrics
India’s potential growth is expected to be around 7%. This is sustainable. If not for some bottlenecks this could be even higher
Source: S&P Global Ratings
Nifty, Sensex Trade Near Day's Low: Midday Market Update
Benchmark equity indices traded near day's low through the midday after snapping their five-day losing streak at open.
At 11:35 a.m., the Nifty traded higher by 32.20 points or 0.14% at 22,520.85 while the Sensex rose to 74,051.08, up by 165.48 points or 0.22%.
Milan Vaishnav, founder of Gemstone Equity Research said, "Election results might come on Tuesday but the polls will make the market volatile on Monday."
He added that options data indicate that market participants are preparing for a 700 point move on the either side of the Nifty in the next two-three sessions.
Shares of Larsen & Toubro Ltd., Mahindra & Mahindra Ltd., ITC Ltd., Bajaj Finance Ltd., and HDFC Bank Ltd. contributed the most to the gains.
Those of Bharti Airtel Ltd., Kotak Mahindra Bank Ltd., State Bank Of India, Axis Bank Ltd., and Tata Consultancy Services Ltd. weighed on the Nifty.
Most sectoral indices fell with Nifty Media losing the most. Nifty Realty was the top gainer.
Broader markets were mixed. The S&P BSE Midcap was 0.42% lower while the S&P BSE Smallcap rose 0.12%.
Seven out of the 20 sectoral indices on the BSE declined and 13 advanced. S&P BSE Realty rose the most.
The market breadth was skewed in the favour of sellers. Around 2,103 stocks declined, 1,556 advanced and 113 remained unchanged on the BSE.
Tube Investments Shares Hit One-Month Low As Arm Buys Additional Stake In lPLTech Electric
Shares of Tube Investments Of India fell to its lowest level in a month after the company announced that its arm on Thursday increased its stake in IPLTech Electric to 89.46% from 65.77% earlier for a consideration of Rs 185 crore.
"The investment is part of Tl Clean Mobility Pvt Ltd's plan to consolidate its holding in the electric truck business," an exchange filing by the company said.
The filing said that the company in which the stake is being bought had a turnover of Rs. 33.20 crores in the fiscal 2024.
The scrip fell as much as 5.4% to Rs 3,500 apiece, the lowest level since April 22. It erased losses to trade 0.12% higher at Rs 3,704.40 apiece, as of 11:14 a.m. This compares to a 0.18% advance in the NSE Nifty 50 Index.
It has risen 4.77% on a year-to-date basis and 29.69% in the last 12 months. Total traded volume so far in the day stood at 0.30 times its 30-day average. The relative strength index was at 46.10.
Out of five analysts tracking the company, three maintain a 'buy' rating, one recommend a 'hold,' and one suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 7.7%.
Nifty IT Falls For Fourth Consecutive Session
The index hit its lowest level since December 5 at 32252.45 points.
Welspun Corp Shares Fall After Q4 Operating Profit Declines
Shares of Welspun Corp. fell over 6% on Friday after its operating profit declined the fourth quarter of the fiscal 2024.
The iron and steel producers' earnings before interest, tax, depreciation and amortisation, or Ebitda, fell 21.5% year-on-year to Rs 330 crore during the quarter ended March 2024, according to an exchange filing. Ebitda margin was at 7.4% versus the 10.3% reported during the same period last year.
Shares of the company fell as much as 7.41% during the day to Rs 557 apiece on the NSE. It was trading 6.56% lower at Rs 562.10 apiece, compared to a 0.25% advance in the benchmark Nifty 50 as of 10:10 a.m.
The stock has risen 21.64% in the last 12 months. The total traded volume so far in the day stood at 5.3 times its 30-day average. The relative strength index was at 40.685.
Five out of the six analysts tracking Welspun Corp have a 'buy' rating on the stock, none are recommending a 'hold' and one suggests a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 18.8%.
Swan Energy Locked In Lower Circuit As Q4 Net Profit Falls On Year
Shares of Swan Energy Ltd were locked in its 5% lower circuit limit after the company reported an over 10% year-on-year fall in its net profit for the quarter ended March.
Swan Energy Q4 FY24 (Consolidated, YoY)
Revenue up 49.8% at Rs 1,398 crore versus Rs 933 crore.
Ebitda down 50.6% at Rs 118 crore versus Rs 238 crore.
Margin at 8.4% versus 25.5%.
Net profit down 10.6% at Rs 56 crore versus Rs 62 crore.
The scrip fell as much as 5%, its lower circuit limit to Rs 574.75 apiece, the lowest level since May 16. It was locked in its lower circuit limit as of 10:22 a.m. This compares to a 0.20% advance in the NSE Nifty 50 Index.
It has risen 12.48% on a year-to-date basis but fallen 14.2% in the last 12 months. Total traded volume so far in the day stood at 0.17 times its 30-day average. The relative strength index was at 41.40.
One analyst tracking the company has a 'buy' rating, according to Bloomberg data.
Suzlon Energy Gets Order From Oyster Green Hybrid One
Gets new order of 81.9 MW for 3 MW series from Oyster Green Hybrid One
To supply 26 wind turbines with a rated capacity of 3.15 MW each
Source: Exchange filing
Bharat Dynamics Erases Gains After Jumping Over 5%
The stock rose over 5% in the early trade as the company's net profit for the March quarter was significantly higher than what the analysts had expected.
Bharat Dynamics Q4 FY24 (Consolidated, YoY)
Revenue up 7% at Rs 854 crore versus Rs 798 crore (Bloomberg estimate Rs 865 crore.
Ebitda up 72.5% at Rs 316 crore versus Rs 183 crore (Bloomberg estimate Rs 238 crore).
Margin at 37% versus 23% (Bloomberg estimate 27.6%).
Net profit up 89% at Rs 289 crore versus Rs 153 crore (Bloomberg estimate Rs 190 crore)
Jio Financial Shares Jump On New App Launch
Shares of Jio Financial Services Ltd. rose nearly 3% on Friday after the company unveiled the 'JioFinance' app in beta version.
Jio Financial's stock rose as much as 2.92% during the day to Rs 357.9 apiece on the NSE. It was trading 0.06% lower at Rs 347.55 apiece, compared to a 0.69% advance in the benchmark Nifty 50 as of 9:53 a.m.
It has risen 40% in the last 12 months and 48% on an year-to-date basis. The relative strength index was at 42.
One analyst tracking the company has a 'hold' rating on the stock, according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 13%.
Apollo Hospitals Shares Rise After Results
The company's consolidated net profit rose 77.5% year-on-year to Rs 258 crore in the quarter-ended March 2024, according to an exchange filing on Thursday. Analysts tracked by Bloomberg had estimated a profit of Rs 265 crore.
Orient Electric Hits Over Five-Month High
The stock rose as much as 7.22% to Rs 239, its highest level since December 20. It pared gains to trade 4% higher at Rs 232 as of 9:43 a.m.. This compares to a 0.64% advance in the Nifty.
On Thursday, the company's board had appointed Ravindra Singh Negi as MD for 5 years effective May 31.
Nifty, Sensex Open Higher As RIL, M&M, ICICI Bank Lead: Opening Bell
Benchmark equity indices snapped their five-day fall and opened higher as shares of Reliance Industries, M&M, and ICICI Bank led the gains.
At pre-open the Nifty was up 79.45 points or 0.35% at 22,568.10 while the Sensex rose to 74,208.53, higher by 322.93 points or 0.44%.
"Today being the first day of new month expiry there could be some positive build up if we sustain 22,400 levels on the downside while on the higher side crossover of 22,650 will trigger sharp covering," said Reliance Securities in a report.
Shares of Reliance Industries Ltd., ICICI Bank Ltd., Mahindra & Mahindra Ltd., State Bank Of India, and ITC Ltd. contributed the most to the gains.
While those of Infosys Ltd., Hindustan Unilever Ltd., Asian Paints Ltd., Maruti Suzuki Ltd., and Tata Consultancy Services Ltd. weighed on the Nifty.
All sectoral indices but Nifty IT gained at open. Nifty Realty and Nifty PSU Bank were the top gainers.
Broader markets also rose with S&P BSE Midcap rising 0.60% and S&P BSE Smallcap adding 0.67%.
All sectoral indices on the BSE rose with S&P BSE Realty leading the gains, followed by S&P BSE Utilities.
The market breadth was skewed in the favour of buyers. Around 2,041 stocks rose, 801 declined, and 106 remained unchanged on the BSE.
Nifty, Sensex Higher At Pre-Open
At pre-open the Nifty was up 79.45 points or 0.35% at 22,568.10 while the Sensex rose to 74,208.53, higher by 322.93 points or 0.44%.
Rupee Strengthens Against U.S. Dollar
-The local currency strengthened by 8 paise to open at 83.23 against the US dollar.
-It closed at 83.31 on Thursday.
Source: Bloomberg
Yield On The 10-Year Bond Flat
-The yield on the 10-year bond opened flat at 6.99%.
-It closed at 7.0% on Wednesday.
Source: Cogencis
Citi on Cummins India
Maintains 'Buy' with target Rs 4,384 up from Rs 3,519, Upside 22%
Strong 4QFY24 led by domestic demand and margin expansion
Data centers are now close to 10% of powergen revenue
Royalty and Technology fee have come down, FY25 seen at similar level
Management guided to ‘double digit growth in FY25’
Growth of 2x of GDP i.e. 12-16% growth over medium term
Increase FY25E/F26E EPS by ~17/~24%
Build in 6%/10% higher revenue and 150/200bps higher margin
Nuvama on Amara Raja
Maintains 'Buy' with target Rs 1,420 from Rs 1,060, Upside 19%
EBITDA slightly below estimate, accounting for amalgamation of Mangal Industries related costs
Increasing EPS for FY25E and FY26E by 4% each,higher revenue and margin assumptions
Building in lead acid battery revenue/EBITDA CAGR of 9%/12% over FY24–26E
Doubling down on EVs—lithium cell facility slated to come on stream in FY26E
Ascribe 3x investment value (1x earlier) to the lithium battery business
Morgan Stanley On Prestige Estate
Retains 'Overweight' with target Rs 1,770 from Rs 1,400, upside 15%
Strong Pre-Sales Outlook for FY25 at Rs. 27,000 crore, despite high base
Driven by strong launch pipeline and ready inventory
Upgrade on new project additions, pricing/cost trends and completion timelines
Update attributable pre-sales percentage assumption to 70% from 60%
Residential launch pipeline with Bangalore, Mumbai,NCR accounting for 45%, 23%, and 20%, respectively
In April, concluded deal with ADIA and Kotak AIP for Rs2000 cr, GDV at Rs. 18,000 crore
Robust collection should keep net debt/equity from rising
Jefferies On Entero Healthcare
Reiterates 'buy' with target price of Rs 1,510; upside 50%
Announced acquisition of 3 distributers for 1.7 billion; acquisition to be completed in July 2024
Company is looking for more acquisition opportunities
FY25 guidance of 20% organic growth with 100bps margin expansion
Expects incremental revenue of Rs 10bn through acquisitions in FY25
ROCE target in mid teens in FY25 vs 10.2% in FY24
Nuvama On Prestige Estate
Maintains Buy with target Rs 1,940, Upside 28%
Plans to launch housing projects with a GDV of Rs. 60,000 crore in FY25
Pre-sales/leasing trajectory shall remain strong with housing cycle turning
Aggressive annuity portfolio build-up across office, retail, and hospitality
Pending capex of Rs.13,900 crore, Land related capex at Rs. 3500-4000 cr FY25
Management has guided for a YoY reduction in net debt to equity in FY25
Morgan Stanley On Apollo Hospitals Enterprise
Rated 'Overweight' with target price of Rs 7,181; upside 25%
Revenues grew 13% led by 16% and 15% YoY growth in offline pharmacy and GMV
As of March 2024 consolidated net debt stands at Rs15bn.
ARPOB grew 12% YoY while ALOS was stable at 3.3 days
Risks to downside include Slower ramp-up, competition from online players, skilled doctors' attrition
Global Cues
US Dollar Index at 104.75
US 10-year bond yield at 4.53%
Brent crude down 0.22% at $81.68 per barrel
Nymex crude down 0.36% at $77.63 per barrel
Bitcoin was up 0.05% at $68,505.31
The GIFT Nifty was 21 points or 0.1% lower at 22,689.00 as of 7:11 a.m.
F&O Cues
Nifty June futures down 0.89% to 22,627.35 at a premium of 138.7 points.
Nifty June futures open interest up 48%.
Nifty Bank June futures up 0.24% to 49,037.4 at a premium of 355 points.
Nifty Bank June futures open interest up 12.06%.
Nifty Options June 6 Expiry: Maximum call open interest at 24,000 and maximum put open interest at 21,000.
Bank Nifty Options June 5 Expiry: Maximum call open interest at 53,000 and maximum put open interest at 40,000.
Securities in ban period: Nil
Trading Tweaks
Ex/record dividend: Advani Hotels and Resorts, Sundaram Finance Holdings, Page Industries, Muthoot Finance, Indian Energy Exchange, GlaxoSmithKline Pharmaceuticals, Infosys, Havells, JSW Energy, Caplin Laboratories.
Ex/record AGM: Infosys, Havells.
Moved out of short-term ASM framework: Indian Hume Pipe Co., Kirloskar Pneumatic Co., Rolex Rings, Tejas Networks.
Insider Trades
Divi's Laboratories: Promoter Divi Madhusudana Rao sold 55,000 shares between May 28 and May 29.
D B Corp: Promoter Girish Agarwal bought 1.51 lakh shares between May 27 and May 29, Pawan Agarwal bought 1.64 lakh shares between May 27 and May 29, Promoter Sudhir Agarwal bought 39,749 shares.
Cantabil Retail India: Promoter Vijay Bansal acquired 3.75 lakh shares between May 24 and May 29.
Wardwizard Innovations and Mobility: Promoter Aevas Business Solutions sold 5 lakh shares on May 27. Promoter Wardwizard Solutions India sold 10 lakh shares between May 28 and May 29.
Kalyan Jewellers: Promoter Geethalakshmi T S sold 50,500 shares on May 29.
Bulk Deals
Awfis Space Solutions: Goldman Sachs FDS Goldman Sachs India EQ Portfolio bought 10.75 lakh shares (1.55%) at Rs 438.18 apiece.
IRB Infrastructure Developers: IRB Holding Pvt. sold 10.50 crore shares (1.73%) at Rs 64.32 apiece, IRB Holding Pvt. sold 12 crore shares (1.98%) at Rs 64.12 apiece.
KFin Technologies: General Atlantic Singapore Fund PTE sold 1 crore shares (5.87%) at Rs 712.81 apiece, Employees Provision Fund managed by Aberdeen Asset Management SDN BHD bought 12.21 lakh shares (0.71%) at Rs 712.5 apiece, Societe Generale bought 20.35 lakh shares (1.19%) at Rs 712.5 apiece, Morgan Stanley Asia Singapore Pte bought 10.63 lakh shares (0.62%) at Rs 712.5 apiece.
Block Deals
R R Kabel: TPG Asia VII SF PTE sold 56.33 lakh shares (4.99%), while Mirae Asset Mutual Fund bought 11.46 lakh shares (1.01%), HDFC Standard Life Insurance bought 8.5 lakh shares (0.75%), Edelweiss Mutual Fund bought 5.29 lakh shares (0.46%), and among others at Rs 1,701 apiece.
Stocks to Watch
Sunteck Realty: The company approved raising up to Rs 2,250 crore through private placement and the issue of equity shares, post the approval of shareholders. The company is to raise Rs 1,500 crore through private placements in one or more tranches and Rs 750 crore by way of equity shares or other securities convertible into equity.
Subex: The company’s arm won a contract worth $1.1 million from a telecom operator in Europe for fraud management on the HyperSense AI/ML platform.
Jio Financial Services: The company unveils the JioFinance App in a beta version, marking a significant step forward in its digital transformation journey to enhance the financial well-being of every Indian.
Hero MotoCorp: The company launched the Splendor+ model at Rs 82,911 ex-showroom price in Delhi.
Aarti Industries: The board appointed Suyog Kalyanji Kotecha as CEO effective June 17. CEO Rajendra Gogri will continue to be the chairperson and MD of the company.
Orient Electric: The board appointed Ravindra Singh Negi as MD for 5 years, effective May 31, and designated her as MD and CEO.
Tube Investments: The company arm acquired a 23.69% stake in IPLTech Electric for Rs 185 crore. The company’s stake now stands at 89.46%, up from 65.77% earlier.
Krishna Institute of Medical Sciences: The company, through its subsidiary KIMS Hospital Bengaluru Pvt., has entered into a lease agreement for setting up a super specialty hospital in Bengaluru, Karnataka, with the Peoples Education Society.
Kewal Kiran: The company acquired a 50% stake in Kraus Casuals for Rs 166.51 crore.
ICICI Prudential Life: The Irdai approved the appointment of Sandeep Batra as chairperson, effective June 30.
Sun Pharma: The company will acquire a 14.3% stake in the Indian Foundation for Quality Management for Rs 12.5 crore.
Earnings Post Market Hours
Bharat Dynamics Q4 FY24 (Consolidated, YoY)
Revenue up 7% at Rs 854 crore versus Rs 798 crore (Bloomberg estimate Rs 865 crore.
Ebitda up 72.5% at Rs 316 crore versus Rs 183 crore (Bloomberg estimate Rs 238 crore).
Margin at 37% versus 23% (Bloomberg estimate 27.6%).
Net profit up 89% at Rs 289 crore versus Rs 153 crore (Bloomberg estimate Rs 190 crore).
Apollo Hospitals Q4 FY24 Highlights (Consolidated, YoY)
Revenue up 14.9% to Rs 4,944 crore versus Rs 4,302 crore (Bloomberg estimate: Rs 4,945 crore).
Ebitda up 31.2% to Rs 641 crore versus Rs 488 crore (Bloomberg estimate: Rs 637 crore).
Ebitda margin at 13% versus 11.3% (Bloomberg estimate: 12.9%).
Net profit up 77.5% to Rs 258 crore versus Rs 146 crore (Bloomberg estimate: Rs 265 crore).
The board has recommended a final dividend of Rs 10 per share.
Welspun Corp Q4 FY24 (Consolidated, YoY)
Revenue up 9.6% at Rs 4,461 crore versus Rs 4,070 crore.
Ebitda down 21.5% at Rs 330 crore versus Rs 421 crore.
Margin at 7.4% versus 10.3%.
Net profit up 19.7% at Rs 287 crore versus Rs 240 crore.
Swan Energy Q4 FY24 (Consolidated, YoY)
Revenue up 49.8% at Rs 1,398 crore versus Rs 933 crore.
Ebitda down 50.6% at Rs 118 crore versus Rs 238 crore.
Margin at 8.4% versus 25.5%.
Net profit down 10.6% at Rs 56 crore versus Rs 62 crore.
GIFT Nifty Trades Below 22,700
The June futures contract of the GIFT Nifty was trading 21 points or 0.1% lower at 22,689.00 as of 7:11 a.m.
Asia Pacific markets were trading higher early Friday on expectations of the Federal Reserve rate cuts this year after US economic data signalled slowing momentum.
The Nikkei 225 was 156 points or 0.41% up at 28,215, and the S&P ASX 200 was 51 points or 0.68% higher at 7679, as of 06:37 a.m.
Traders in Wall Street sent US stocks down for the second consecutive session and bonds up after the latest round of economic data signalled momentum is slowing.
The S&P 500 Index and Nasdaq Composite fell 0.60% and 1.08%, respectively, as of Thursday. The Dow Jones Industrial Average fell 0.86%.
Brent crude was trading 0.22% lower at $81.68 a barrel. Gold rose 0.15% to $2,346.58 an ounce.
The Indian benchmark equity indices fell for the fifth consecutive session on Thursday as heavyweights weighed on them. The NSE Nifty 50 closed 216.05 points or 0.95%, down at 22,488.65, while the S&P BSE Sensex ended 617.30 points or 0.83%, lower at 73,885.60.
Overseas investors in Indian equities remained net sellers on Thursday for the second straight session. Foreign portfolio investors offloaded stocks worth Rs 3,050.2 crore and domestic institutional investors stayed net buyers for eight straight sessions and mopped up equities worth Rs 3,432.9 crore, according to provisional data from the National Stock Exchange.
The Indian currency strengthened by 3 paise to close at 83.32 against the US dollar.
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