KEY HIGHLIGHTS
Rupee Weakens Against US Dollar
The local currency weakened 3 paise to close at 83.53 against the US dollar.
It closed at 83.50 on Tuesday.
Source: Bloomberg
Nifty, Sensex End At Fresh Highs As Private Banks Rally: Market Wrap
Indian benchmarks settled at fresh closing highs on Wednesday, tracking sharp gains in heavyweight HDFC Bank Ltd., ICICI Bank Ltd.
The NSE Nifty 50 settled 162.65 points or 0.67% higher at 24,286.50, and the S&P BSE Sensex ended 545.34 points or 0.69% higher at 79,986.80.
Intraday, the Nifty 50 rose 0.76% to a fresh high of 24,307.25. The Sensex rose 0.80% high to historic high of 80,074.30. The NSE Nifty Bank index also scaled a fresh high of 53,256.70 during the day.
"Sensex crossing the 80,000 mark is a big achievement for the Indian stock market. Sixteen years ago it was at 8,800 on the day when Lehman, the leading bank in the US markets, crashed. Nine times returns in 16 years," Shrikant Chouhan, head equity research, Kotak Securities.
However, four years ago during the time of Covid it was at 26,000, which seems unrealistic but it is true. It gives confidence that equity markets did perform well in the long run, we need patience and confidence while investing and even after it. Based on the current domestic macros, our advice is to continue investing systematically in equities with a long term perspective, he added.
"Indian bourses commenced the session on a strong note at a fresh high of 24,290 but due to lack of follow-through, the Index oscillated in a well-maintained range to end the session at 24,286.50 with gains of 162.65 points. Barring Media, all other sectors ended the day in green with he Nifty Bank being the top performer followed by Metal and PSU Banks. Broader markets outperformed the Frontline Index as Mid and Smallcaps gained by 0.79% & 1.03% respectively. On the lower time-frame i.e. hourly chart, the Index is developing a probable negative divergence in RSI and a sustainable move below 24,200 will drag the Index towards 24,130," said Aditya Gaggar, directo, Progressive Shares
HDFC Bank Ltd. ICICI Bank Ltd., Axis Bank Ltd., Kotak Mahindra Bank Ltd., and State Bank of India added to the benchmark NSE Nifty 50.
Reliance Industries Ltd., Tata Consultancy Services Ltd., Titan Co., Larsen & Toubro, and Tata Motors Ltd. weighed on the benchmark.
On NSE, nine sectors advanced, two remained flat, and one declined. The NSE Nifty Financial Services and Bank indices lead rally. Both the top performing sectors have recorded fresh high during trade.
In contrast, the NSE Nifty Media emerged as the worst performing sector with 0.39% decline.
Broader indices outperformed. Both S&P BSE Midcap and Smallcap ended 0.86% higher.
Except BSE Oil & Gas, which ended flat, all sectoral indices on the BSE ended higher. S&P BSE Bankex rose the most.
Market breadth was skewed in the favour of buyers. Around 2,372 stocks rose, 1,547 fell, and 102 remained unchanged on the BSE.
Shriram Properties's COO Venkataraman Resigns
Shriram Properties Ltd.'s Ram Shankar Venkataraman resigns as COO effective July 1
Source: Exchange filing
Sensex Crosses 80,000 Level For First Time
The S&P BSE Sensex breached the 80,000 mark for the first time, and the NSE Nifty 50 topped the 24,300 level during early trade on Wednesday. After posting the best monthly gains for this calendar year in June, the benchmarks continued their third day of a record-setting streak.
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Vraj Iron & Steel Hits Upper Circuit On Listing Day
Shares of Vraj Iron & Steel Ltd. hit an upper circuit and rose to Rs 252 on listing day. It has gained 21.74% from the issue price of 207 on NSE on Wednesday.
The stock is listed on the BSE Wednesday at Rs 240 apiece, a premium of 15.9% over its issue price of Rs 207. Even on the National Stock Exchange, the stock debuted at Rs 240 per share.
European Markets Gain
Byju's NCLT Saga
Byju's has now paid the fine imposed by the NCLT in Bengaluru to Surfer Technology.
The fine was Rs 20,000.
This fine was imposed on April 24.
Byju's had initially failed to respond to an insolvency plea from Surfer Technology.
Byju's was given several chances to respond but did not initially comply.
Source: NCLT proceedings
Dr. Reddy's Reiterates Double-Digit Growth; Shares Hit Record
Shares of Dr. Reddy's Laboratories Ltd. hit a record high on Wednesday after it said it was on track to achieve an average double-digit growth in revenue and operating profit in the current fiscal.
Shares of the company rose as much as 2.24% to a record high of Rs 6,512.65 apiece. It pared gains to trade 2% higher at Rs 6,499 apiece as of 11:59 a.m. This compares to a 0.57% decline in the NSE Nifty 50 Index.
The stock has risen 12.05% on a year-to-date basis and 15.23% in the last 12 months. Total traded volume on the NSE so far in the day stood at 1.99 times its 30-day average. The relative strength index was at 57.45.
Out of 30 analysts tracking the company, 14 maintain a 'buy' rating, 12 recommend a 'hold,' and 14 suggest a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies a downside of 4.8%.
Persistent Systems' Arm Dissolves
Persistent Systems Ltd.'s step-down arm Software Company International dissolved with effect from June 27.
Source: Exchange filing
Sundaram Clayton Approves Raising Rs 400 Crore
Sundaram Clayton Ltd.'s board has approved raising as much as Rs 400 crore via QIP.
Source: Exchange filing
Motilal Oswal: Bulls & Bears (India Valuations)
Nifty rebounds and closes above 24k in Jun’24
Midcaps/smallcaps outperformed largecaps by 1.2%/3.1%
FIIs report inflows after 2 consecutive months of outflows
DIIs recorded inflows of $3.4b in Jun’24
Top Gainers: Technology, Telecom, Real Estate, Private Banks, Automobiles
Industrials, Railways, Defense, PSUs to see more valuation moderation, before becoming attractive again
Top Investment Ideas
Large Caps: ICICI Bank, ITC, HCL Tech, Coal India, SBI, L&T, M&M, Zomato, Ultratech, CIFC and Hindalco
Midcaps and Smallcaps: Indian Hotels, Ashok Leyland, Godrej Properties, Global Health, KEI Industries, PNB Housing, Cello World, Senco Gold and Kirloskar Oil.
PTC Industries Surges To Record High
Shares of PTC Industries Ltd. rose 7.82% to 15,299.90, the highest level since June 9, 2023. It pared gains to trade higher at Rs 14,897.35 as of 11:24 a.m., as compared to 0.55% advance in the NSE Nifty 50 index.
The scrip gained 228.69% in 12 months, and 147.49% on year to date basis. Total traded volume so far in the day stood at 0.9 times its 30-day average. The relative strength index was at 75.98, which implied the stock is overbought.
One analysts tracking the company maintains a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an downside of 13.7%
Wockhardt Surges To Record High
Shares of Wockhardt Ltd. jumped 11.94% to Rs 934.45, the highest level since its listing on Feb 23, 2000. It was trading 11.06% higher as of 11:15 a.m., as compared to 0.61% advance in the NSE Nifty 50 index.
The scrip gained 293.74% in 12 months, and 120.90% on year-to-date on basis. Total traded volume so far in the day stood at 2.0 times its 30-day average. The relative strength index was at 91.69, which implied the stock is overbought.
Acme Solar Holdings Files For IPO Worth Rs 3,000 Crore
Acme Solar Holdings Ltd. has filed for IPO worth Rs 3,000 crore.
The company seeks to raise Rs 2,000 crore via fresh issue.
Source: Bloomberg
MOIL Jumps Nearly 9% On Recording Highest Sales, Production In June Quarter
Shares of MOIL Ltd.'s shares jumped nearly 9% after it registered the June quarter as its best one in terms of sales and production. This helped the stock recover in the second consecutive session after it had lost 10% from June 24 to July 1.
In Wednesday's session, the scrip rose as much as 8.84% to Rs 534.95 apiece, the highest level since June 26. It pared gains to trade 7.4% higher at Rs 527.90 apiece, as of 10:58 a.m. This compares to a 0.6% decline in the NSE Nifty 50 Index.
It has risen 70.84% on a year-to-date basis and 184.59% in the last 12 months. Total traded volume on the NSE so far in the day stood at 1.80 times its 30-day average. The relative strength index was at 57.76.
Out of four analysts tracking the company, two maintain a 'buy' rating, nine recommend a 'hold,' and two suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies a downside of 8.5%.
India Composite PMI Rises To 60.9 In June
Services PMI rises to 60.5 in June vs 60.4 in May
Composite PMI rises to 60.9 in June vs 60.5 in May
Alert: A reading above 50 indicates expansion in activity.
Source: S&P Global
Also Read: India's Services PMI Rises To 60.5 In June
Indices That Are Trading At Life High
Nifty Pharma Soars To New Highs As Dr. Reddy's, Zydus Life Gain
The NSE Nifty Pharma rose 0.90% to a fresh high of 19,963.95, the highest level since its incorporation on July 1, 2005. It was trading 0.67% higher at 19,918.35 as of 10:39 a.m., as compared to 0.65% advance in the benchmark NSE Nifty 50 index.
M&M Financial Services Falls After June Business Update
Shares of M&M Financial Services Ltd. fell for the second consecutive session today to trade more than 4% lower from its closing price on Monday.
On Wednesday, the scrip fell as much as 4.58% to Rs 288.60 apiece, the lowest level since June 11. It pared losses to trade 1% lower at Rs 299.60 apiece, as of 10:06 a.m. This compares to a 0.7% advance in the NSE Nifty 50 Index.
It has risen 8% on a year-to-date basis and 0.5% in the last 12 months. Total traded volume so far in the day stood at 0.63 times its 30-day average. The relative strength index was at 56.83.
Out of 38 analysts tracking the company, 19 maintain a 'buy' rating, ten recommend a 'hold,' and nine suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies a downside of 0.7%.
Nifty Bank Climbs To Fresh High On Gains In HDFC Bank, ICICI Bank
The NSE Nifty Bank index rose 1.98% to 53,201.50, the highest level since its inception as HDFC Bank Ltd., ICICI Bank Ltd. rose. It was trading 1.77% higher at 53,090.80 as of 10:08 a.m., as compared to 0.61% advance in the NSE Nifty 50 index.
Motilal Oswal Gets SEBI Warning For Broking Operations
Motilal Oswal Financial Services Ltd. received an administrative warning from SEBI related to process of broking operations.
No impact on finance, operations or other activities after SEBI warning letter.
Source: Exchange filing
KEC International Rises To Fresh High On Winning Order Worth Rs 1,017 Crores
Shares of KEC International Ltd. hit a life high on Wednesday after receiving orders worth Rs 1,017 crores in Transmission and Distribution and Renewables distribution.
Federal Bank Rises To Record High After Reporting Over 20% Annual Rise In Advances
Shares of Federal Bank Ltd. rose 4.34% to Rs 182.62, the highest level since its listing on Feb 8, 1995. The private bank's gross advances grew 20.1% on the year to Rs 2.24 lakh crore in three months to June 30, Federal Bank said on Wednesday.
Nifty Finance Scales Fresh High Led By Private Banks
The NSE Nifty Financial Services index scaled a fresh high of 23,910.25 on Wednesday tracking gains in shares of HDFC Bank Ltd., Axis Bank Ltd., and ICICI Bank Ltd. It was trading 429.75 points or 1.83% higher at 23,930.60 as of 09:46 a.m., as compared to 0.67% advanced the NSE Nifty 50 index.
HDFC Bank Rises To Fresh High On Hopes Of Weightage Increase In MSCI Index
Shares of HDFC Bank Ltd. surged to a life-high after the fall in foreign institutional investors' holdings paved the way for the increasing the bank's weight in the MSCI Emerging Market Index.
Brokerages On HDFC Bank
Jefferies
Foreign holding came in below the MSCI’s threshold to raise Foreign Inclusion Factor
Bank may be eligible for jump in index weight at next review in August’24
This could be positive for near term
In medium term, strong deposit growth and improving NIMs should be key drivers
Nuvama on HDFC Bank
FII holding for June quarter came in at 54.83%
Current weight of HDFC in MSCI index is 3.8%
Could jump to 7.2%-7.5%
Expect stock gain momentum and cross Rs.1,900 until official announcement in August 13
Domestic funds bought because of reasonable valuation and should continue to hold
Sensex Hits 80,000; Nifty Scales Fresh High As HDFC Bank Leads: Opening Bell
Indian benchmarks scaled fresh high at open for second day in a row with the S&P BSE Sensex crossing 80,000 mark for first time as the heavyweight HDFC Bank rose.
As of 09:19 a.m., the NSE Nifty 50 was trading 104.50 points or 0.43% higher at 24,231.85, the Sensex was trading 393.05 points or or 0.49% higher at 79,834.50.
Reliance Securities expects some retracement and corrective action to the lower range of 23,900 levels as key index pivotal are overbought on multiple time frames. RSI is reversing from the higher range and could re-test the lower range of the channel on the downside and other key technical indicators are overbought. Highest call open interest has moved higher to 24,500 strikes while the downside the highest put OI is at 23,800 for the weekly expiry, said Vikas Jain, a senior research analyst from Reliance Securities.
HDFC Bank Ltd., Axis Bank Ltd., Kotak Mahindra Bank Ltd., ITC Ltd., and Mahindra & Mahindra Ltd. added to the benchmark.
Bharti Airtel Ltd., Sun Pharmaceutical Industries Ltd., ICICI Bank Ltd., Tata Consultancy Services Ltd., and NTPC Ltd. limited gains in the index.
On NSE, 10 sectors advanced, one declined, and one remained flat out of 12. The NSE Nifty Finance led gains among peers, while the NSE Nifty IT emerged as top loser.
Broader markets rose during early trade. The S&P BSE Midcap and Smallcap rose 0.41% and 0.57% higher, respectively.
On BSE, 17 sectors advanced, and three declined out of 20. The S&P BSE Bankex and Financial Services were the top performing sector, and the S&P BSE IT and Teck were the top loser.
Market breadth was skewed in favour of buyers. Around 2,219 stocks rose, 713 declined, and 115 stocks remained unchanged on BSE.
Q1 Business Update (YoY) - Federal Bank
Total deposits rose 19.6% to Rs 2.66 lakh crore as of June 30
Gross advances rose 20.1% to Rs 2.24 lakh crore as of June 30
CASA rose 9.9% to Rs 77,901 crore as of June 30
Source: Exchange filing
JSW Infrastructure Arm Signs Pact Chidambaranar Port To Buil Cargo Berth
JSW Infrastructure Ltd.'s arm signed a concession pact with VO Chidambaranar Port Authority for cargo berth.
The company will likely to develop, mechanise 7 million ton per annum cargo berth at VO Chidambaranar Port.
Source: Exchange filing
Nifty, Sensex Trade Higher At Pre-Open
The NSE Nifty 50 was trading 167.90 points or 0.70% higher at 24,291.75, and the S&P BSE Sensex was trading 0.72% higher at 80,013.93.
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Yield On The 10-Year Bond Flat
The yield on the 10-year bond opened flat at 7.00%.
It closed at 7.01% on Tuesday.
Source: Cogencis
Rupee Weakens Against US Dollar
The local currency weakened 2 paise to open at 83.52 against the US dollar.
It closed at 83.50 on Tuesday.
Source: Bloomberg
Paytm Introduces Affordable Income Protection For Merchants
One 97 Communication Ltd. has introduced affordable healthcare and income protection for merchants with Health Saathi Plan.
Source: Exchange filing
Global Cues
U.S. Dollar Index at 105.75
U.S. 10-year bond yield at 4.43%
Brent crude up 0.43% at $86.61 per barrel
Bitcoin was down 0.71% at $61,480.55
The GIFT Nifty was trading 28.5 points or 0.12% lower at 24,323.50 as of 07:36 a.m.
F&O Cues
Nifty July futures up by 0.02% to 24,203 at a premium of 80 points.
Nifty July futures open interest up by 0.09%.
Nifty Bank July futures down by 0.62% to 52,368 at a premium of 200 points.
Nifty Bank July futures open interest down by 2.5%.
Nifty Options July 4 Expiry: Maximum call open interest at 25,000 and maximum put open interest at 24,000.
Bank Nifty Options July 3 Expiry: Maximum call open interest at 53,000 and maximum put open interest at 50,000.
Securities in ban period: India Cements, Indus Tower.
Money Market
The Indian currency weakened 6 paise to close at 83.50 against the US dollar.
Also Read: Avenue Supermarts' Q1 Revenue Rises 18%
Who's Meeting Whom?
Tega Industries: To meet analysts and investors on July 5.
Divgi Torqtransfer Systems: To meet analysts and investors on July 3.
Escorts Kubota: To meet analysts and investors on July 8.
Polycab India: To meet analysts and investors on July 19.
Trading Tweaks
Price band Changes from 20% to 10%: Veranda Learning Solutions.
Ex/record Dividend: Jyothy Labs, Dalmia Bharat Sugar and Industries,
Ex/record AGM: Jyothy Labs.
Ex/record Bonus: GPT Infraprojects.
Moved in short-term Framework: Allied Digital Services, Atul Auto, Digispice Technologies, Epack Durable, Ion Exchange (India), Orient Cement, Roto Pumps, Solara Active Pharma Sciences, Veranda Learning Solutions.
Moved out short-term Framework: CE Info Systems, Finolex Cables, GTL Infrastructure, KNR Constructions.
Pledge Share Details
Axiscades Technologies: Promoter Jupiter Capital revoked a pledge for 1 lakh shares on June 28.
Insider Trades
Star Cement: Promoter Laxmi Chamaria sold 1.8 lakh shares between June 26 and 27.
Bulk Deals
Allcargo Gati: Macquarie Bank Ltd. sold 10 lakh shares (0.76%) at Rs 101.09 apiece.
House of Pearl Fashions: Abu Dhabi Investment Authority bought 5.85 lakh shares (1.34%) at Rs 720.15 apiece.
Sakuma Exports: Al Malaki Foodstuff Trading LLC sold 33.75 lakh shares (1.07%) at Rs 35.11 apiece, while Contact Consultancy Services Pvt. sold 20 lakh shares (0.63%) at Rs 35.08 apiece.
Pearl Global Industries: LTS Investment Fund sold 5.75 lakh shares (1.32%) at Rs 726.92 apiece.
IPO Offering
Nephro Care India: The public issue was subscribed 715.85 times. The bids were led by institutional investors (245.14 times), non-institutional investors (1,787.56 times), and employee portion (20.44 times).
Emcure Pharmaceuticals: The company will offer its shares for bidding on Wednesday. The price band is set from Rs 960 to Rs 1,008 per share. The Rs 1,952-crore IPO is a combination of a fresh issue of Rs 800 crore and rest offer for sale. The company has raised Rs 582 crore from anchor investors.
Bansal Wire Industries: The company will offer its shares for bidding on Wednesday. The price band is set from Rs 243 to Rs 256 per share. The Rs 745-crore IPO is an entirely fresh issue. The company has raised Rs 223 crore from anchor investors.
Stocks to Watch
HDFC Bank: The company has reported a reduction in foreign institutional investors' shareholding to 54.83% in the June 2024 quarter, down from 55.54% in the previous quarter. This change aligns with the MSCI Index's requirement of keeping FII shareholding below 55.5%.
M&M Finance: The company reported disbursements up 5% year-on-year at Rs 12,730 crore for the end of Q1 FY25 and business assets up 4% QoQ at Rs 1.06 lakh crore. Collection efficiency for the end of Q1 stood at 94%.
Yes Bank: The company reported loans and advances up 14.8% year-on-year at Rs 2.29 lakh crore, deposits up 20.8% year-on-year at Rs 2.64 lakh crore for the end of Q1 FY25. CASA ratio at 30.7% vs 30.9% QoQ.
IEX: The company reported total volume up 21% year-on-year at 30,354 MU, Real-time electricity market volume up 26.8% year-on-year at 9,193 MU, and green market segment volumes up 94.3% year-on-year at 1,768 MU for the end of Q1 FY25.
NTPC: The company reported power generation up 9.5% year-on-year at 113.87 BU, and coal stations recorded a plant load factor of 79.5% at the end of Q1 FY 25.
Puravankara: The company acquired a 7-acre land parcel in Bengaluru with a potential gross development value of Rs 900 crore.
KEC International: The company received a new order worth Rs 1,017 crore in its T&D and renewables businesses.
Hindustan Zinc: The company reported a 2% year-on-year increase in Mined metal production at 263 kt, Saleable metal output up 1% at 262 kt YoY, and silver output down 7% at 167 tonnes YoY.
Britannia Industries: The company appointed former RBI Governor Urjit Patel as an independent director for five years effective July 2.
MosChip Technologies: The company signed a pact with C-DAC and Socionext to make a high-performance computing processor AUM. The processor is to be built on TSMC's 5 nm technology node.
Avenue Supermarts: The company reported standalone revenue up 18% year-on-year at Rs 13,712 crore. The total stores as of June 30 stood at 371.
Zomato: Zomato Financial Services will withdraw the RBI application for getting registered as an NBFC. The company does not want to pursue the lending/credit business anymore.
Healthcare Global: The company approved the acquisition of 196-bedded Vizag Hospital in Visakhapatnam for over Rs 362 crore. 51% stake to be bought for Rs 208 crore, 34% stake for Rs 155 crore.
GPT Infraprojects: The company to mull the fundraising proposal on July 5.
Piramal Enterprises: The company approved raising up to Rs 180 crore via bonds.
Primo Chemicals: The company secured long-term coal linkages via a 10-year fuel supply agreement with Northern Coalfields.
GIFT Nifty Trades Above 24,300
Most Asia-Pacific markets rebounded Wednesday after Federal Reserve Chair Jerome Powell indicated that the US is returning to a disinflationary trajectory. This affirmed hopes of monetary easing in the world's largest economy. His remarks came at a time when US Job Opening and Labor Turnover Survey showed new jobs increased in May, showcasing underlying strength of the labour market.
The Nikkei 225 was trading 278.19 points or 0.69% higher at 40,352.88, and the S&P ASX 200 was trading 9.60 points or 0.12% higher at 7,727.80 as of 06:45 a.m.
The markets were little changed on Tuesday, with the S&P 500 index and Nasdaq Composite rising 0.62% and 0.84% respectively. The Dow Jones Industrial Average rose 0.41%.
Brent crude rose 0.27% higher at $86.47 a barrel. Gold rose 0.07% to $2,331.18 an ounce.
The GIFT Nifty was trading 10.0 points or 0.04% lower at 24,342.00 as of 06:45 a.m.
The Indian benchmark equity indices ended a volatile session flat on Tuesday after hitting record highs in early trade as shares of banks weighed on them.
The NSE Nifty 50 ended 18.10 points, or 0.07%, lower at 24,123.85, while the S&P BSE Sensex closed 34.74 points, or 0.04%, down at 79,441.45.
Overseas investors stayed net sellers of Indian equities for the third consecutive day on Tuesday. Foreign portfolio investors offloaded stocks worth Rs 2,000.1 crore, while domestic institutional investors stayed net buyers for the third session and bought equities worth Rs 648.3 crore, according to provisional data from the National Stock Exchange.
The Indian currency weakened 6 paise to close at Rs 83.50 against the US dollar.
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