KEY HIGHLIGHTS
Rupee Strengthens Against US Dollar
-The local currency strengthened by 7 paise to end at 83.47 against the US dollar.
-It closed at 83.54 on Thursday.
Source: Bloomberg
Sensex, Nifty End Higher Led By Gains In M&M, Banks: Closing Bell
Benchmark equity indices ended the first day of the week on a positive note after a lower open as shares of private banks and M&M gained but those of heavyweight Reliance capped the upside.
The Nifty closed at 23537.85, up 0.16% or 36.75 points and the Sensex closed at 77341.08, up by 0.17% or 131.18 points. Intraday, both the Nifty and Sensex fell 0.6%.
"The Index reversed from the lower end of the consolidation to form a green candle with the downside being protected at 23,400 while the higher side is also capped at 23,660," said Aditya Gaggar, director of Progressive Shares. "A precise close on either side will provide a clear picture."
Shares of ICICI Bank Ltd., HDFC Bank Ltd., Mahindra & Mahindra Ltd., ITC Ltd., and Power Grid Corp. Of India contributed the most to the gains.
While those of Reliance Industries Ltd., IndusInd Bank Ltd., Axis Bank Ltd., Infosys Ltd., and Adani Ports & Special Economic Zone capped the upside.
Sectoral indices were mixed at close. Nifty Auto rose the most and Nifty Media was the top loser.
Market breadth was skewed in favour of buyers. Around 2,120 stocks rose, 1,872 stocks declined, and 164 stocks remained unchanged on BSE.
Broader markets outperformed benchmark indices. The S&P BSE Midcap and Smallcap ended 0.37% and 0.27% higher, respectively.
On BSE, 13 sectoral indices advanced and seven declined out of 20. The S&P BSE Metal was the worst performing sector, and the S&P BSE Auto rose the most to become the top performing sector.
Holding Companies Rise On Regulatory Tweak, Discount To Intrinsic Value
Century Textiles Unit Acquires Land Parcel In Pune
Unit Birla Estates acquires 16.5 acres land parcel in Pune having revenue potential of Rs 2,500 crore
Source: Exchange filing
Prosus Marks Down Byju's Investment Value
Prosus marks down Byju's investment value to zero at the end of FY24
Writes off fair value of 9.6% effective interest, loss of $493 million recognised
Marked down due to significant decrease in value for equity investors
Source - Prosus annual report
India VIX Surges
Man Industries Gujarat Plant Gets France Body Certificate
Gujarat plant gets CE certification from Bureau Veritas, France
Source: Exchange Filing
Nifty, Sensex Erase Losses As ICICI Bank, M&M Lead: Midday Market Update
The benchmark stock indices erased losses from the morning session to trade higher through midday on Monday, tracking gains in share prices of ICICI Bank Ltd., Mahindra & Mahindra Ltd. and HDFC Bank Ltd. As of 11:57 a.m., the NSE Nifty 50 was trading 26.20 points or 0.11% higher at 23,527.30, and the S&P BSE Sensex was 111.10 points or 0.14% up at 77,321.00.
Earlier in the day, the Nifty 50 declined as much as 0.64% to 23,350, and the Sensex declined 0.60% to 76,745.94.
There was some profit booking at these levels. A small bearish candle on the weekly chart and a double top formation on the intraday chart indicates potential weakness from current levels, according to Shrikant Chouhan, head of equity research at Kotak Securities.
The medium-term market structure remains positive. Kotak Securities expects weak sentiment to remain as long as the market is trading below 23,700/77,800.
ICICI Bank Ltd., Mahindra & Mahindra Ltd., HDFC Bank Ltd., Tata Consultancy Services Ltd. and Sun Pharmaceutical Industries Ltd. led the gains in the Nifty.
Reliance Industries Ltd., Infosys Ltd., Axis Bank Ltd., IndusInd Bank Ltd., and Adani Ports & Special Economic Zone Ltd. weighed on the index the most.
Seven out of the 12 sectors on the NSE advanced. The Nifty Media led the losses, while FMCG was the top performer.
The broader markets outperformed the benchmark indices as the BSE MidCap and the SmallCap indices were trading 0.19% and 0.55% higher respectively.
On the BSE, 12 out of the 20 sectors advanced, with Capital Goods being the top performer and Realty emerging as the top loser.
The market breadth was skewed in favour of the buyers as 2,128 stocks advanced, 1,621 declined and 200 remained unchanged on the BSE.
Cummins India Hits Lifetime High
The stock jumped as much as 4.49% to hit its all-time high of Rs 4,075. It has risen over 107% on an year-to-date basis and 110% in the last twelve months.
Nifty Auto Snaps Four-Day Fall
Before Monday's rise, the index had fallen 2.5% in its four-day fall.
RPP Infra Gets Orders Worth Rs 152 Crore
Gets order for construction of district jail at Uttar Pradesh
Source: Exchange Filing
Sanghvi Movers Gets Two Work Orders
Gets two work orders worth Rs 180 crore
Source: Exchange Filing
Cipla Falls 2% As Goa Facility Gets Six Observations
Shares of Cipla Ltd. fell to the lowest level in over two weeks after it has received six observation for its facility in Goa from the US Food and Drug Administration.
NBCC Gets Order From REC
Gets order worth nearly Rs 100 crore from REC in Hyderabad
Source: Exchange Filing
L&T Gets 'Significant' Order
Power transmission & distribution vertical gets order in the range of Rs 1,000-2,500 crore to build solar PV plant
Source: Exchange Filing
TBO Tek Shares Hit Record After Goldman Initiates Coverage With 'Buy'
Shares of TBO Tek Ltd. surged to a record high on Monday after Goldman Sachs initiated coverage with a 'buy' rating, citing a strong execution track record, strong free cash flow generation, an asset-light balance sheet, and low competition, among other positives in the business model.
Garden Reach Jumps Over 10%
Shares of Garden Reach & Shipbuilders Ltd. jumped over 10% on Monday after the company secured an order worth $54 million for multi-purpose vehicles from a German company.
Shares of Garden Reach Shipbuilders & Engineers Ltd. jumped 10.65% to Rs 1,891.30, the highest level since June 19 It was pared gains to trade 8.93% as of 10:08 a.m., as compared to 0.30% decline in the NSE Nifty 50 index.
The scrip gained 201.63% in 12 months, and 103.57% on year to date basis. Total traded volume so far in the day stood at 3.0 times its 30-day average. The relative strength index was at 68.00.
Out of five analysts tracking the company, three maintain a 'buy' rating, and two suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 29.6%.
Most Fertiliser Stocks Fall
Kotak On Container Corp
Kotak maintains 'Sell' on Container Corp at Rs 740 target (29% downside)
Rail freight rate data suggest company's pricing is at 5% premium to peers
Expects market share loss to continue
Recent unconfirmed news flow suggests divestment process could defer to beyond FY25
Current market trades at expensive 42x one-year forward earnings
Morgan Stanley On Zomato
Morgan Stanley maintains 'Overweight' on Zomato at Rs 235 target (21% upside potential)
Zepto's recent fund raise increases Quick Commerce channel relevance, competitive intensity
Zepto raises $665 million at $3.6 billion valuation
Zepto to use fund raise to enter new markets, increase penetration in existing cities
Recent fundraises in space reflect growing importance of quick commerce
Implication on Zomato:
To maintain/improve market positioning given expansion plan
Lowers expectations on break-even levels expected in quick commerce segment
Push out of profitability for quick commerce a possibility
Correction in stock to be buying opportunity for long-term investors
Morgan Stanley On India Technology: Internet Strategy
Maintains 'Overweight' on Zomato at Rs 235 target (21% upside)
Maintains 'Overweight' on PB Fintech at Rs 1020 target (23% downside)
Zomato, PB Fintech's track record, outlook, valuations outweigh others
Macro & micro factors aligned for India internet stocks
Rising dispersion of stock returns implies greater focus on stock election
Firms reprioritizing growth despite slow margin improvement in near term
Key catalyst: Strong revenue growth momentum
Expects Zomato, PB Fintech to surprise on revenue growth.
Welspun Specialty Solutions Hits Five-Month High On BHEL Order
Shares of Welspun Specialty Solutions Limited surged the most in nearly five months on Monday after it was notified by Bharat Heavy Electricals Ltd. (BHEL) as the lowest bidder for a supply contract worth Rs 117 crore.
Ujjivan Finance Slumps On Loan Growth Guidance Cut
Ujjivan Small Finance Bank Ltd.'s shares declined to the lowest level in over two weeks after it slashed its loan growth guidance for fiscal 2025.
The small finance bank has cut down loan growth guidance by 500 basis points for fiscal 2025 due to stress noticed in certain pockets of the business, the lender said Sunday in an analyst presentation.
Nifty Stocks That Hit Life High As The Index Fell
Nomura on Rising Freight Rates
Rising freight rates in Asia add to pipeline price pressures
Higher costs point to faster pickup in PPI inflation, pressure on profit margins
WCI composite freight index up over 240% YoY as of June 20
Higher rates on tight capacity, strong demand, frontloading of shipments
Expects tight supply demand conditions to persist in 2024
Rising shipping costs add to import price inflation
While firms could absorb some cost increase, it would squeeze profit margins
Nifty, Sensex Open Lower As Heavyweights Drag: Opening Bell
Benchmark indices extended Friday's losses and opened lower with most stocks trading lower. Only eight Nifty stocks out of 50 rose and rest fell.
At pre-open, the NSE Nifty 50 was 0.51% or 118.80 points lower at 23,382.30, and the S&P BSE Sensex was 0.42% or 324.18 points lower at 76,885.65.
"Nifty 50 has made multiple tops near to 23,700 levels and witnessed profit booking, and we expect some profit booking to test the lower range of 23,200 levels," said Vikas Jain, senior research analyst at Reliance Securities. "We expect the volatility to increase with respect to rollover movement in individual sectors and stocks and on the higher side 23,800 will act as resistance."
Shares of HDFC Bank Ltd., Reliance Industries Ltd., Infosys Ltd., State Bank Of India, and IndusInd Bank Ltd. dragged the indices.
While those of ICICI Bank Ltd., Sun Pharmaceutical Industries Ltd., ITC Ltd., Tata Consultancy Services Ltd., and Power Grid Corp. cushioned the fall.
Except Nifty FMCG, all sectoral indices fell. Nifty PSU Bank and Nifty Realty were the top losers.
Market breadth was split between buyers and sellers. Around 1,521 stocks rose, 1,558 fell and 149 stocks remained unchanged on the BSE.
Broader indices also fell. S&P BSE Midcap was 0.85% lower and S&P BSE Smallcap fell 0.35%.
Six out of 20 sectoral indices on the BSE advanced and 14 declined. Metal and Realty index fell the most.
Nifty, Sensex Lower At Pre-Open
At pre-open, the NSE Nifty 50 was 0.51% or 118.80 points lower at 23,382.30, and the S&P BSE Sensex was 0.42% or 324.18 points lower at 76,885.65.
Yield On The 10-Year Bond Flat
The yield on the 10-year bond opened flat at 6.97%.
It closed at 6.97% on Friday.
Source: Cogencis
Rupee Strengthens Against US Dollar
The local currency strengthened by 7 paise to open at 83.47 against the US dollar.
It closed at 83.54 on Friday.
Source: Bloomberg
Infibeam Avenues In Pact For AI Adoption
In pact with Entrepreneurship Development Institute of India for AI adoption for enterprises, MSMEs & start‐ups
Source: Exchange Filing
Paytm In Pact With Skyscanner, Google Flights, Wego
In pact with Skyscanner, Google Flights and Wego
Q4 flight bookings up 19% YoY
Paytm Travel onboards 3 new carriers including Cambodia Angkor Air, SalamAir and FlyDubai
Source: Exchange Filing
Best Agrolife Arm Gets Manufacturing Licence
Arm gets licence to manufacture Haloxyfop R Methyl Ester
Source: Exchange Filing
Biocon Arm Gets European Body Approval For Bangalore Facility
Arm gets approval from European Medicines Agency for new mAbs facility in Bengaluru
mAbs stands for multi-product monoclonal antibodies
Source: Exchange Filing
Goldman Sachs Initiates Coverage On TBO Tek
Initiate with 'Buy', target Rs 1,970, 24% upside
Revenues grew by 26% CAGR, expect 22% in FY24-27E
Company is consistently profitable, expect FCF to PAT at higher than 100%
Positives in business model:
Exposed to large, fragmented TAM,
Strong execution track record
Asset light balance sheet
Negative working capital
Strong FCF generation
Low competition/regulatory risks
Risks:
Headwinds from shift to online
Competition
Change in supplier terms
Slowdown in Global travel
Nuvama's Outlook on Engineering & Capital Goods
Believes in sustained momentum in public capex across thermal power, T&D, railways and defence
Sees private capex pickup across new age areas like data centres, solar modules, electronics etc
Margin surprise across product companies (ex-EPCs) led to all-time high valuation premiums
Believes valuations will sustain backed by macro tailwinds and strong investment plans
Prefers Data centres, Railways, Power T&D, Defence and Water & Wastewater treatment sectors
Believes demand momentum to sustain for tranformer players for next 4-5 years
Sees earnings re-rating for ABB, Siemens, CG Power and Hitachi Energy on higher order inflows in FY25
Sector Top Picks: BHEL, Hitachi Energy, CG Power and Kalpataru Projects
Top picks in non-covered space: Data Patterns, APAR Industries, Schneider Electric and BEML
Genesys International Launches AI Navigation Map
Launches AI navigation map for auto & mobility industries
Source: Exchange Filing
Nuvama on Consumer Durables
Huge beneficiaries of GDP multiplier effects, offering great growth potential
Directional growth improvement is likely as this quarter marks an inflection point for consumer durables
Expects the industry to clock double-digit growth in FY25e
Top Pick: Voltas, rated 'BUY'
Rising raw material costs may lead to a price hike of 2–3% next quarter
Strong overall performance indicates robust consumer-spending trend; sustained growth in FY25 and beyond
Industry body CEAMA expects 14mn RAC sales in 2024, implying volume growth of 27% YoY
Reckon there is no oversupply in the industry despite PLI-led capacity expansions
Projections indicate a 20% CAGR in demand and a 16% CAGR in supply over FY24–27e
Growth Drivers:
Aspirational middle class with notable penetration in tier-3, -4, and -5 towns (60% sales contribution)
Favourable monsoon for boosting rural consumption and festive sales
Rise in demand for premium appliances
Buoyant residential real estate sales over the past 2-3 years
Brokerages On Mahanagar Gas
Nuvama Maintains 'Buy' on Mahanagar Gas at Rs 1,670 target (13% upside)
World's first CNG motorcycle to launch on July 5
CNG 2W to be lucrative alternative to 2W EV scooter
Believe motorcycles could add 6% to MGL’s CNG volumes by 2030
Expect MGL's CNG volumes to rise 2% by FY26
Base case assumes 20% CNG penetration in motorcycle segment
Expect FY25 earnings growth to be flat, margins to normalize
Citi Maintains 'Buy' on Mahanagar Gas at Rs 1,550 target (5% upside)
Takeaways from CEO Meetings in US
Management guides 6-7% YoY volume growth in FY25
Margins to sustain at Rs 11+/scm in near-term
Company sees pick up in monthly CNG conversions
Higher conversions on stable & affordable CNG prices
Management expects 10-12% YoY growth in in industrial volumes in FY25
Company to add 300,000 connections per annum going forward
Management concurs that sector is likely to see consolidation in coming years
Citi on India Gas
No Developments on Bringing Gas Under GST at latest council meeting
Given building expectations, gas stocks could see short-term disappointment for
FM states govt is intent on eventually bringing petrol & diesel under GST too
See moves being made to first bring gas under GST
Welspun Specialty Solutions Gets Contract From BHEL
Emerges as lowest bidder for supply contract worth Rs 117 crore by BHEL
Source: Exchange Filing
Ujjivan Small Finance Bank Analyst Meet Takeaways
FY25 Outlook revision
Stress seen in its micro-banking portfolio (MBL) in Punjab, Haryana, Gujarat, UP, Kerala
Growth at 20% (vs 20-25% earlier)
Credit costs at 1.7% (vs 1.4-1.5% earlier)
ROE of 20% (vs 22% earlier)
Increase in secured mix
Maintaining margins at 9% despite increase in secured mix
Emkay Maintains buy on Ujjivan SFB; TP 65 (+33%)
Bank has hired Sanjeev Nautiyal to replace Ittira Davis
Apply for universal bank in FY25
Trim FY25-27 earnings by 4-6%
Expect healthy ROA of 2.5-3%
Value Bank at 1.6x FY26 adjusted book value
Quant Confirms Receiving Enquiries From Market Regulator
Sebi undertakes investigation against Quant Mutual
Investigations pertain to irregularities which could lead to alleged front-running
Quant Mutual manages Nearly Rs 90,000 crore in equity AUM
30% of AUM in Small Cap fund
Stress test for Small Cap Fund worsened to 28-days for 50% liquidation in May
Quant MF to provide necessary support and furnish data to SEBI on a regular and as-needed basis
Global Cues
U.S. Dollar Index at 105.85
U.S. 10-year bond yield at 4.25%
Brent crude down 0.34% at 84.95 per barrel
Bitcoin was down 0.76% at $63,220.19
GIFT Nifty was at 23,388.50, lower by 67 points or 0.29% as of 7:38 a.m.
F&O Cues
Nifty June futures down by 0.52% to 23,487.3 at a discount of 13.8 points.
Nifty June futures open interest down by 5.08%.
Nifty Bank June futures down by 0.3% to 51,613.35 at a discount of 48.1 points.
Nifty Bank June futures open interest down by 8.64%.
Nifty Options June 27 Expiry: Maximum Call open interest at 24,000 and Maximum Put open interest at 23,000.
Bank Nifty Options June 26 Expiry: Maximum Call Open Interest at 54,000 and Maximum Put open interest at 49,000.
Securities in ban period: Balrampur Chini Mills, Chambal Fertilizers, GNFC, Granules, Hindustan Aeronautics, Hindustan Copper, Indus Tower, PEL.
Trading Tweaks
Price Band revised from 20% to 10%: Premier Explosives.
Moved out short-term Framework: Andra Cements, Dhanuka Agritech, H.G. Infra Engineering, Likhitha Infrastructure, Pennar Industries, Vishnu Chemicals.
Moved in short-term Framework: Chambal Fertilizers & Chemicals.
Bulk Deals
Axis Bank: Morgan Stanley & Company International PLC bought 1.7 crore shares (0.55%) at Rs 1,225.75 apiece.
Gujarat Fluorochemicals: Devansh Trademart LLP sold 12.5 lakh shares (1.13%) at Rs 3317.32 apiece.
IdeaForge Technology: Celesta Capital Ii Mauritius sold 3.57 lakh shares (0.85%) at Rs 785.01 apiece.
Poly Medicure: Lighthouse India III Equity Investors sold 22.76 lakh shares (2.37%) at Rs 1,950.03 apiece.
Gravita India: Oxbow Master Fund bought 14 lakh shares (2.02%) at Rs 1,365 apiece, while Rajat Agrawal sold 14 lakh shares (2.02%) at Rs 1365 apiece.
Aster DM Healthcare: Olympus Capital Asia Investments Limited sold 4.5 crore shares (9%) at Rs 340 apiece while Morgan Stanley Asia Singapore Pte bought 66.66 lakh shares (1.33%) at Rs 340 apiece, Franklin Templeton Mutual Fund bought 31.57 lakh shares (0.63%) at Rs 340 apiece, Government Of Singapore bought 26.27 lakh shares (0.52%) at Rs 340 apiece.
DCX Systems: NCBG Holdings Inc sold 12.96 lakh shares (1.33%) at Rs 355.06 apiece.
Block Deals
IndiaMart InterMesh: Westbridge Crossover Fund LLC sold 7.3 lakh shares (1.19%) at Rs 2,601 apiece, while SBI Mutual Fund bought 5.4 lakh shares (0.88%) at Rs 2,601 apiece and Morgan Stanley Asia (Singapore) Pte bought 1.9 lakh shares (0.31%) at Rs 2,601 apiece.
IPO Offering
DEE Development Engineers: The public issue was subscribed to 99.56 times on day 3. The bids were led by institutional investors (201.91 times), non-institutional investors (144 times), retail investors (23.42 times), Portion for employee reserved (44.73 times).
Akme Fintrade India: The public issue was subscribed to 55.12 times on day 3. The bids were led by institutional investors (28.12 times), non-institutional investors (130.33 times), retail investors (45.78 times), Portion reserved for Employees (5.53 times).
Stanley Lifestyles: The public issue was subscribed to 1.44 times on day 1. The bids were led by institutional investors (0.3 times), non-institutional investors (2.01 times), retail investors (1.81 times).
Stocks to Watch
Ujjivan Small Finance Bank: The lender has lowered its fiscal 2025 loan growth guidance by 500 basis points as it sees stress building up in some pockets of its business.
Prestige Estates Projects: The board approved raising up to Rs 5,000 crore via QIP.
IREDA: The company has successfully raised Rs 1,500 crore today through the issuance of bonds.
S.P. Apparels: The company completed the acquisition of Young Brand Apparel for Rs 167 crore.
HDFC Bank: SBI Mutual Fund raises stake in the company to over 5%.
Sterlite Technologies: The Pre-trial mediation with US-based Prysmian Cables remains unsuccessful. The case against the company filed by Prysmian Cables is to commence trial on July 23.
Cipla: Blackrock raised its stake in the company to over 5%. USFDA inspection at its manufacturing facility in Goa ended with 6 observations.
MCX: The company shortlisted names of candidates for the post of MD & CEO. The company will seek regulatory approvals for appointment.
TVS Motor: The company signed a pact with CSC Grameen eSTORES for a commercial vehicle range.
Garden Reach Shipbuilders: It has received an order for construction of four multi-purpose cargo ships from a German company. The consideration for the order is $54 million or Rs 450 crore approximate.
Lupin: The pharma company has received establishment inspection report from U.S. Food and Drug Administration for its Somerset Manufacturing Facility.
Avenue Supermarts: It has opened a new store in Gopalapatnam, Visakhapatnam. The total number of stores as on date stands at 370
AGS Transact: Crisil Rating has revised its long-Term rating to “CRISIL A” from “CRISIL A+”. The reason for revision is because of a decline in revenue and delay in collection of receivables.
GIFT Nifty Trades Near 23,400
The GIFT Nifty was trading 68 points or 0.29% lower at 23,387.50 as of 07:13 a.m.
Most Asia-Pacific markets declined on Monday as investors await inflation figures from Japan and Australia, scheduled to be published this week.
The Nikkei 225 was 142.05 points or 0.37% higher at 38,738.52 and the S&P ASX 200 was 46.30 points or 0.59% lower at 7,749.70 as of 06:50 a.m.
The significant expiration of options on Wall Street not only caused US stocks to grapple for a definitive trend but also subjected Nvidia, a frontrunner of the bull market on a roller coaster ride.
The S&P 500 Index and Nasdaq Composite fell 0.16% and 0.18%, respectively as on Friday. Dow Jones Industrial Average rose 0.04%.
Brent crude was trading 0.42% lower at $84.88 a barrel. Gold rose 0.06% to $2,323.4100 an ounce.
India's benchmark stock indices closed lower on Friday as investors booked profits. However, on a weekly basis, the indices ended higher for the third time, posting a record-high weekly close.
The NSE Nifty 50 fell 111.15 points, or 0.47%, to close at 23,455.85. The S&P BSE Sensex fell 269.03 points, or 0.35%, to end at 77,209.90.
Overseas investors broke their buying streak and turned sellers on Friday. Foreign portfolio investors sold stocks worth Rs 1,790.19 crore, while domestic institutional investors turned net buyers after a day selling and bought equities worth Rs 1,237.21 crore, according to provisional data from the National Stock Exchange.
The Indian currency strengthened by 11 paise to close at 83.54 against the US dollar.
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