Stock Market Today: Sensex, Nifty Resume Advances As RIL, Airtel Lead; FPIs Stay Net Buyers

Overseas investors in Indian equities remained net buyers for the ninth day in a row on Monday.

Foreign portfolio investors mopped up stocks worth Rs 588.48 crore, according to data from the National Stock Exchange.

Domestic institutional investors snapped their five-day selling streak to turn net buyers of equities worth Rs 288.38 crore, the NSE data showed.

Foreign institutions have net bought Rs 22,815 crore worth of equities so far in July. They have been net buyers of Rs 99,222 crore worth of Indian equities in 2023, according to data from the National Securities Depository Ltd. updated till the previous trading day.

The yield on the 10-year bond closed marginally lower at 7.13% on Monday. It closed at 7.16% on Friday.

Source: Bloomberg

• The local currency strengthened 16 paise to close at 82.58 against the U.S dollar on Monday.

• The local currency closed at 82.74 on Friday.

Source: Bloomberg

Reliance Industries Ltd., Bharti Airtel Ltd., Tata Steel Ltd., JSW Steel Ltd., and Kotak Mahindra Bank Ltd. were the positively adding to the change in the Nifty 50 Index.

Whereas, TCS Ltd., Hindustan Unilever Ltd., Titan Co., HCL Technologies Ltd., and Axis Bank Ltd., and were negatively adding to the change.

The broader market indices underperformed the larger peers; the S&P BSE MidCap Index was down 0.45%, whereas S&P BSE SmallCap Index was 0.26% lower.

Fifteen out of the 20 sectors compiled by BSE declined with S&P BSE Consumer Durables falling the most. Five sectors advanced with S&P BSE Metal as the leader.

The market breadth was skewed in the favour of the sellers. About 1,487 stocks rose, 2,191 declined, while 152 remained unchanged on the BSE.

• SEBI details its existing Enforcement Policy in response to committee's suggestions on regulatory/prosecution proceedings.

• Says regulatory action is always basis of existing securities law.

• New facts which were previously unknown are also actioned against basis existing framework.

Source: SEBI affidavit

• Navantia and L&T have teamed up to participate in a techno-commercial bid for the Indian Navy’s P75 submarine program.

• Touted as India‘s largest defence acquisition project, the project is expected to be valued at €4.8 billion or Rs 4.34 lakh crore.

• Project entails the delivery of six submarines with Air-Independent Propulsion, using Navantia’s third-generation AIP solution.

Source: Exchange filing

Shares of Mazagon Dock Shipbuilders Ltd. was locked in a 10% upper circuit, as of 3:16 p.m., as compared to a 0.15% advance in the NSE Nifty 50. The scrip rose as much as 10%, to hit an intraday record high of Rs 1,454.85 per share. This implies a nearly 10-time surge in the share price of the stock since its listing at Rs 145 per share.

Total traded volume stood at 1.5 times its 30-day average. The relative strength index was at 79, implying that the stock maybe overbought.

Out of the four analysts tracking the company, two maintain a 'buy' rating, one recommends a 'hold' and one suggests to 'sell' the stock, as per the Bloomberg data.

The average calculated from the 12-month price target given by analysts implies a potential downside of 16.5%.

Source: Bloomberg

• HDFC Life Insurance records strongest year-on-year growth of 28%

• SBI Life's new business premiums fell 13% over last June

• ICICI Pru Life rose 23% over last year

• LIC's revenues grew 21% year-on-year

Source: Life Insurance Council

• Fixed income MF schemes see net outflow of Rs 14,135.52 crore

• Actively managed equity MF schemes see net inflow of Rs 8,637.49 crore

• Hybrid MF schemes see net inflow of Rs 4,611.18 crore

Source: AMFI

Max Estates Ltd., the real estate arm of the Max Group, has received pre-formal launch sales of over Rs 1,800 crore, in its first luxury residential project in the National Capital Region.

The sales were for its project, Estate 128, which is being built in Noida's Sector-128, the company said in an exchange filing. The project is set across 10 acres, with three high rise towers, housing 201 units.

Max Estates is a 100%-owned subsidiary of Max Ventures and Industries Ltd., which is a listed firm on BSE and NSE.

Shares of Max Ventures gained as much as 5% intraday on Monday to Rs 219.7 apiece.

Shares of Zee Entertainment Enterprises Ltd. fell more than 5%, the most in almost two months, on Monday after the Securities Appellate Tribunal upheld SEBI's interim order against Subhash Chandra and Punit Goenka.

SEBI had barred Goenka and Chandra from holding any directorial positions in any listed company on June 12, following allegations of fund diversion. Both Goenka and Chandra approached the appellate tribunal on June 13, which reserved its order on June 27.

The tribunal has now directed Chandra and Goenka to file a response to SEBI's order within two weeks, and also asked the regulator to fix a date for hearing within a week.

Shares of Zee Entertainment dropped 1.99% to Rs 202.05 apiece as of 12:00 p.m., compared to a 0.10% incline in the Nifty 50. The scrip fell as much as 5.68% intra-day, the most since May 12, 2023.

The average traded volume so far in the day stood at 3.7 times its monthly average.

Of the 24 analysts tracking the company, 22 maintain a 'buy' rating on the stock, one recommends a 'hold', and one suggests a 'sell', according to Bloomberg data. The average 12-month consensus price target implies a potential upside of 22.4%.

India's benchmark stock indices opened higher and were rangebound in trade through midday on Monday. The indices advanced for the second record-setting week on last Friday. Metal and energy sectors rose whereas, I.T. and realty shares declined. RIL Ltd., and Tata Steel Ltd. led the positive change on the indices; while TCS Ltd., and Bajaj Finance Ltd. dragged.

Stocks fell in Asia and the dollar strengthened as risk appetite was dented by deflation risks in China and threats of a U.S. recession. Shares in Hong Kong and mainland China pared gains after Chinese data showed further declines in factory-gate prices while core inflation slowed.

Traders had initially focused on optimism that a crackdown by Beijing on Chinese tech companies was nearing an end, sending the Hang Seng Tech Index up as much as 3.2%, before trimming its advance.

European stock futures declined, while those for the U.S. extended losses after most American equities dropped on Friday when wage data showed inflation remained a threat. The S&P 500 fell 1.2% over the holiday-shortened week, while the Nasdaq 100 dropped 0.9%.

As of 12:04 p.m., the S&P BSE Sensex Index was up 20 points or 0.03% at 65,300.22 while the NSE Nifty 50 Index was 10 points or 0.05% higher at 19,341.80.

Reliance Industries Ltd., Tata Steel Ltd., Tata Motors Ltd., Bharti Airtel Ltd., and ICICI Bank Ltd. were the positively adding to the change in the Nifty 50 Index.

Whereas, TCS Ltd., Bajaj Finance Ltd., Titan Co., HDFC Bank Ltd., and HCL Technologies Ltd., and were negatively adding to the change.

The broader market indices were trading lower; the S&P BSE MidCap Index was down 0.45%, whereas S&P BSE SmallCap Index was 0.29% lower.

Fifteen out of the 19 sectors compiled by BSE declined with S&P BSE Consumer Durables falling the most. Four sectors advanced.

The market breadth was skewed in the favour of the sellers. About 1,396 stocks rose, 2,081 declined, while 157 remained unchanged on the BSE.

Shares of Bajaj Auto Ltd. rose 1.470% to Rs 4,904.95 apiece as of 11:28 a.m., compared to a 0.19% advance in the NSE Nifty 50. The scrip rose as much as 2.42% intraday to hit an all-time high at Rs 4,951 apiece.

Total traded volume stood at 2.1 times its 30-day average. The relative strength index was at 64.5.

Out of the 46 analysts tracking the company, 25 maintain a 'buy' rating, 17 recommend a 'hold' and four suggest to 'sell' the stock, according to Bloomberg data.

The average 12-month consensus price target implies a potential downside of 3.6%.

• Easy Trip Planners has entered a general sales agreement with SpiceJet Airlines.

• Company will sell and promote SpiceJet products and services in India.

Source: Exchange filing

Shares of Sula Vineyards Ltd. rose to their highest in two months after reporting its highest-ever revenue in the quarter ended June.

The company's first-quarter net revenue rose 17% year-on-year led by a 30% growth in its Elite and Premium brands, according to an exchange filing. Sula's owned brands outperformed, with segment revenue up 24% to Rs 103.5 crores.

Sula's wine tourism revenue rose 11% year-on-year to Rs 11.4 crores. The company's Domaine Sula winery, outside Bengaluru, reported a 70% jump in visitors.

Shares of the company rose 1.71% to Rs 452.60 apiece compared to a 0.38% advance in the Nifty 50. The stock hit an intraday high of 4.72%, the highest in two months.

The total traded quantity so far in the day stood at 2.6 times the 30-day average volume. The stock's relative strength index stands at 54.96, indicating that is neither overbought nor oversold.

All the four analysts tracking the stock maintains a 'buy' rating, according to Bloomberg data. The consensus price estimate indicates a 9.6% upside over the next 12 months.

Shares of Indian Oil Corp. gained over 2% in early trade on Monday on its plan to raise Rs 22,000 crore through a rights issue.

The board of directors of the company have approved the proposal, subject to requisite approvals. The details of the rights issue, such as issue price and record date terms of payment, will be announced shortly after.

The board also gave its go-ahead to a joint venture with Sun Mobility Pte. for battery-swapping business in India. The entity will be a 50:50 private collaboration between both the companies.

The board has approved investing $78.31 million in wholly owned subsidiary IOCL Singapore to acquire preference shares and warrants of SMS.

Shares of Indian Oil rose 2.27% intra-day before paring gains to trade 0.60% lower at Rs 98.60 as compared to a 0.43% advance in the NSE Nifty 50.

The total traded volume so far in the day stood at 3.1 times its 30-day average. The relative strength index was at 77.69, implying that the stock may be overbought.

Of the 37 analysts tracking the company, 26 recommend a buy rating, eight rate a 'hold' and three suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a return potential of 1.3%.

Shares of Gland Pharma Ltd. rose on Monday after the U.S. drug regulator approved drug application for an injectable.

The U.S. Food and Drug Administration approved the company's abbreviated new drug application for Fomepizole injectable.

Fomepizole injection is an antidote for ethylene glycol such as antifreeze, or methanol poisoning.

Shares of the company surged 8.57%, the most in a month, before trading 6.20% higher as compared to a 0.37% advance in the Nifty 50.

The total traded quantity so far in the day stood at 7.4 times the 30-day average volume. The stock's relative strength index stands at 63.28, indicating that it is neither overbought nor oversold.

Of the 19 analysts tracking the stock, seven maintain a 'buy', three recommend a 'hold', and nine suggests a 'sell', according to Bloomberg data. The consensus price estimate indicates a 11.3% upside over the next 12 months.

Morgan Stanley downgraded Titan Co. citing the upcoming inauspicious period for buying in the Hindu calendar even as sees the jewellery-to-watch maker as a long-term bet.

The research firm lowered the rating on the stock to 'equal-weight' and set a target price of Rs 3,207, implying a potential upside of about 5% from the current levels, according to a July 7 note.

Titan reported a strong sales in the first quarter, with 21% growth in jewellery on wedding demand in June despite gold price volatility

Shares of Titan are trading 2.26% lower at Rs 3,073.05 apiece as compared to a 0.47% advance in the NSE Nifty 50.

Out of the 35 analysts tracking the stock, 27 maintain a buy, five recommend a hold and three suggest a sell rating, according to Bloomberg. The average 12-month consensus price estimate indicates a 1.7% downside.

Shares of ICICI Prudential Life Insurance Company Ltd. advanced the most in four weeks on Friday after its assured new business rose in the first quarter.

The company's growth in assured new business rose 8.8% year-on-year in the quarter ended June 30, according to an exchange filing. The value for its new business doubled since 2019 to Rs 2.765 crore in fiscal 2023 versus 2019's Rs 1,328 crore. This shows a CAGR of 20.1% in four years.

The company's total annualised premium equivalent grew 11.7% year-on-year to Rs 8,640 crore.

Shares of ICICI Prudential rose 2.32% to Rs 586.60 apiece as compared to a 0.52% incline in the Nifty 50. The scrip jumped as much as 4.48% intra-day, the most in four weeks.

The average traded volume so far in the day stood at 2.6 times its monthly average. The relative strength index was 72.12, implying that the stock might be overbought.

Of the 31 analysts tracking the company, 24 maintain a 'buy' rating on the stock, four recommend a 'hold', and three suggest a 'sell', according to Bloomberg data. The average 12-month consensus price target implies a potential downside of 0.3%.

Tata Motors Ltd. shares advanced to a record high of Rs 634.8 apiece after the company reported Total global wholesales, including Jaguar Land Rover, rose 5% to 3.22 lakh.

Tata Motors Group Q1 Update (Year-on-year)

• Global wholesales of commercial vehicles and Tata Daewoo fell 15% to 88,456.

• Global wholesales of passenger vehicles rose 8% to 1.40 lakh.

• Global wholesales for Jaguar Land Rover were 93,253 vehicles.

• Jaguar wholesales for Q1 were 10,324 vehicles, while Land Rover wholesales for the quarter were 82,929 vehicles.

The scrip of the automotive manufacturing company rose 1.89% to Rs 634.8 apiece as of 10:45 a.m., compared to a 0.51% advance in the NSE Nifty 50. The stock gained as much as 2.31% intraday to Rs 632.5.

Total traded volume stood at 3.5 times its 30-day average. The relative strength index was at 77, suggesting stock may be overbought.

Out of the 36 analysts tracking the company, 29 maintain a 'buy' rating, three recommend a 'hold' and four suggest to 'sell' the stock, as per the Bloomberg data.

The average calculated from the 12-month price target given by analysts implies a potential downside of 2.7%.

• RIL shares hit a 52-week high at Rs 2,756 apiece.

• Nearly 100 points away from record-high at Rs 2,856 apiece.

Source: Bloomberg

Shares of Hindustan Zinc Ltd. fell after the company announced that it will dole out an interim dividend of Rs 7 a share, or a total of Rs 2,957 crore, for FY24.

This follows a payout to investors last year of around Rs 31,900 crore rupees in four tranches. Vedanta Ltd., which owns about 65% of Hindustan Zinc, has already issued one dividend this year ahead of a bond repayment. The company paid five dividends in the prior fiscal year totaling about Rs 37,700 crore. The Indian government has stake of around 30% in Hindustan Zinc.

The scrip fell 3.79% to Rs 327.7 apiece as of 10:16 a.m., compared to a 0.42% advance in the NSE Nifty 50. The stock declined as much as 4.86% intraday, the most in over three months since March 29, 2023.

Total traded volume stood at 6.9 times its 30-day average. The relative strength index was at 64.2

Out of the 14 analysts tracking the company, two maintain a 'buy' rating, three recommend a 'hold' and nine suggest to 'sell' the stock, as per the Bloomberg data.

The average calculated from the 12-month price target given by analysts implies a potential downside of 16%.

Source: Bloomberg, Exchange filing

• Cyient DLM shares listed at Rs 403 per share on the NSE, a premium of 52.07% to its IPO price of Rs 265.

• On the BSE, the stock listed at Rs 401 apiece, a 51.32% premium.

• Its IPO was subscribed 67.31 times.

Source: BSE, NSE

• L&T completed the transition of a $150 million term loan with Bank of America into a Sustainability Linked Loan on June 30

Source: Exchange filing

• Nifty Auto jumped 0.85% intraday to hit a fresh record high at 15,630.20 points.

Shares of Reliance Industries Ltd. rose the most in over 14 weeks after it decided to reduce equity share capital held by shareholders in Reliance Retail Ltd. The equity shares held by minority investors, other than its promoter and holding company, Reliance Retail Ventures shall be cancelled and extinguished upon reduction. A consideration of Rs 1,362 per share will be paid towards the capital reduction.

Shares of Reliance Industries Ltd. rose 2.95% to Rs 2,711.2 apiece as of 9:27 a.m., compared to a 0.21% advance in the NSE Nifty 50. The scrip rose as much as 3.16% intraday, the most in over three months since March 31, 2023.

Total traded volume stood at 3.8 times its 30-day average. The relative strength index was at 72, implying that the stock maybe overbought.

Out of the 38 analysts tracking the company, 33 maintain a 'buy' rating, three recommend a 'hold' and two suggest to 'sell' the stock, as per the Bloomberg data.

The average calculated from the 12-month price target given by analysts implies a potential upside of 4.1%.

Source: Bloomberg, Exchange filing

The broader market indices opened higher; the S&P BSE MidCap Index was up 0.04%, whereas S&P BSE SmallCap Index was 0.28% higher.

Ten out of the 20 sectors compiled by BSE advanced with S&P BSE Energy gaining the most. Nine sectors declined.

The market breadth was skewed in the favour of the buyers. About 1,518 stocks rose, 912 declined, while 138 remained unchanged on the BSE.

Source: BSE

India's benchmark stock indices opened higher paring some pre-open gains on Monday after two record setting weeks. Asian markets swung between gain and losses as investors assessed a potential turning point for Chinese tech companies and constructive dialogue between Beijing and Washington.

Equity benchmarks fluctuated in Japan South Korea, Australia while rose in mainland China and Hong Kong. U.S. stock futures were little changed after most American equities slipped Friday when wage data showed inflation remained a threat. The S&P 500 fell 1.2% over the holiday shortened week, while the Nasdaq 100 dropped 0.9%.

At pre-open, the S&P BSE Sensex Index was up 204 points or 0.31% at 65,484.51 while the NSE Nifty 50 Index was 69 points or 0.35% higher at 19,400.35.

At pre-open, the S&P BSE Sensex Index was up 204 points or 0.31% at 65,484.51 while the NSE Nifty 50 Index was 69 points or 0.35% higher at 19,400.35.

Source: Bloomberg

• The yield on the 10-year bond opened flat at 7.16% on Monday.

Source: Bloomberg

• The local currency strengthened 9 paise to open at 82.65 against the U.S dollar on Monday.

• The local currency closed at 82.74 on Friday.

Source: Bloomberg

• IRB Infrastructure's toll collection for June, 2023 grew 16% YoY to Rs 383.3 crore.

• Company's Q1 toll collection grew 18% YoY to Rs 1,183 crore.

Source: Exchange filing

• SpiceJet board will consider raising funds via equity or convertible securities on a preferential basis on Wednesday, July 12.

Source: Exchange filing

• U.S. Dollar Index at 102.4

• U.S. 10-year bond yield at 4.08%

• Brent crude down 0.19% at $78.32 per barrel

• Nymex crude down 0.27% at $73.66 per barrel

• GIFT Nifty down 0.16% or 31 points at 19,427 as of 8:20 a.m.

• Bitcoin down 0.43% at $30,072.05

• Chambal Fertilisers and Chemicals: Promoter Zuari Industries released a pledge of 3.7 lakh shares on July 5.

• Price Band Revised From 20% To 10%: Zee Media Corporation

• Ex-Date Dividend: LTIMindtree, Onward Technologies

• Move Into Short-Term ASM Framework: Black Box

• Move Out Of Short-Term ASM Framework: Ram Ratna Wires

• Usha Martin: Societe Generale bought 16.6 lakh shares (0.5%) at Rs 279.99.

• Reliance Industries: The conglomerate will reduce equity share capital held by shareholders in Reliance Retail Ltd. other than its promoter and holding company, Reliance Retail Ventures. The shares held by such shareholders shall be cancelled and extinguished upon reduction. A consideration of Rs 1,362 per share will be paid towards the capital reduction.

• Vedanta: The company has acquired two units of Twin Star Technologies, Vedanta Foxconn Semiconductors and Vedanta Displays, via share transfer, thus adding semiconductors and display glass ventures to its portfolio. The share purchase price of Vedanta Displays has a face value of Rs 5 lakh. The share purchase price of Vedanta Foxconn is at a face value of Rs 5 lakh, including net operating liabilities of about Rs 4 crore.

• Indian Oil Corp.: The company has agreed to raise capital up to Rs 22,000 crore by issuing equity shares on a rights basis. Separately, it inked a pact with Sun Mobility Singapore to form a 50:50 joint venture for the battery swapping business. Indian Oil will invest Rs 1,800 crore in equity till fiscal 2026–27. It will also invest $78.31 million in IOCL Singapore for the purchase of preference shares and warrants of Sun Mobility Singapore.

• Samvardhana Motherson International: The company has inked a contract to acquire a 100% stake in Rollon Hydraulics. The business will be housed under the company's precision metals and modules division.

• Aurobindo Pharma: The company’s unit, CuraTeQ Biologics, has inked an exclusive licencing agreement with U.S.-based BioFactura Inc. to sell the BFI-751 biosimilar. BFI-751 is a proposed biosimilar of Ustekinumab, which is a recombinant monoclonal antibody sold under the brand Stelera. It is used to treat Crohn's disease, ulcerative colitis, plaque psoriasis, and psoriatic arthritis. BioFactura will get licence fees up to $33.5 million. CuraTeQ will receive 57%–60% of the profits, depending on the markets. CuraTeQ will have global manufacturing rights for the Ustekinumab biosimilar.

• ITC: The conglomerate clarified a media report regarding the demerger of the hotel business. It said the company remains committed to implementing its 'asset-right' strategy with respect to the hotel business. It is committed to focusing on sweating existing assets, creating additional revenue streams, and pursuing alternate structures to enhance growth and value. ITC said it will inform regarding any material development of company affairs to the stock exchanges.

• Suzlon Energy: The board of Suzlon Energy has approved a fund raising of Rs 2,000 crore via equity and debt instruments. Fundraising is subject to the approval of shareholders. 

• Tata Motors Group Q1 Update (Year-on-year)

  • Total global wholesales, including Jaguar Land Rover, rose 5% to 3.22 lakh.

  • Global wholesales of commercial vehicles and Tata Daewoo fell 15% to 88,456.

  • Global wholesales of passenger vehicles rose 8% to 1.40 lakh.

  • Global wholesales for Jaguar Land Rover were 93,253 vehicles.

  • Jaguar wholesales for Q1 were 10,324 vehicles, while Land Rover wholesales for the quarter were 82,929 vehicles.

• Sula Vineyards Q1 Update (Year-on-year)

  • The company’s own brand sales went up 24% YoY, led by premiumisation 

  • The company estimates its net revenues will grow by 17%.

  • Elite, premium wines drove sales of the winemaker’s own brands, with the segment estimated to grow 24% to Rs 103.5 crore.

  • The company sold off its lowest-priced Heritage brand, which was only available in Karnataka.

  • The wine tourism business grew 11% to Rs 11.4 crore. There has been a 70% jump in visitor numbers to Domaine Sula winery, near Bengaluru.

• FSN E-Commerce Ventures

  • Beauty and personal care category consumption remains strong despite a slowdown in discretionary spends

  • Expect the beauty and personal care segment to grow in the early twenties on a YoY basis in Q1.

  • Discretionary spending will improve with the revival of seasonal demand.

  • Nykaa Fashion's net sales value for the quarter is expected to grow in low to mid-teens on YoY basis.

  • For Q1 FY24, on a consolidated basis, company expects revenue to grow in the mid-twenties YoY.

Asian markets swung between gain and loss as investors assessed a potential turning point for Chinese tech companies and a constructive dialogue between Beijing and Washington.

Equity benchmarks fluctuated in Japan and South Korea, while rising in Australia. U.S. stock futures were little changed after most American equities slipped Friday when wage data showed inflation remained a threat. The S&P 500 fell 1.2% over the holiday shortened week, while the Nasdaq 100 dropped 0.9%.

Brent crude was above $78 a barrel and West Texas Intermediate was trading below the $74 mark. The yield on the 10-year U.S. bond was trading at 4.08%, whereas Bitcoin was above the $30,000 level.

At 8:20 a.m., the GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India, was down 0.16% or 31 points at 19,427.

The S&P BSE Sensex ended 575.22 points, or 0.87%, lower at 65,280.42, while the NSE Nifty 50 fell 165.50 points, or 0.85%, to end at 19,331.80. On a weekly basis, the NSE Nifty 50 and S&P BSE Sensex gained for the second straight week by 0.74% and 0.87%, respectively. All sectors, except Nifty IT, advanced in trade this week, led by Nifty Media, Nifty PSU Banks, and Nifty SmallCap 100. The local currency weakened about 24 paise to close at 82.74 against the U.S. dollar on Thursday.

Overseas investors in Indian equities remained net buyers for the eighth day in a row on Friday. Foreign portfolio investors mopped up stocks worth Rs 790.4 crore. However, domestic institutional investors remained net sellers for the fifth straight day and offloaded equities worth Rs 2,964.2 crore.