Stock Market Today: Sensex, Nifty Decline As RIL, ICICI Bank Drag; FPIs Turn Net Sellers

Overseas investors in Indian equities snapped four-day buying streak to turn net sellers on Monday.

Foreign portfolio investors offloaded stocks worth Rs 1,030.9 crore, according to data from the National Stock Exchange. This was the highest worth of selling in 10 days, since June 9.

Domestic institutional investors also turned net sellers and sold equities worth Rs 365.2 crore, the NSE data showed.

Foreign institutions net bought Rs 16,587 crore worth of equities in June. They have been net buyers of Rs 45,846 crore worth of Indian equities so far in 2023, according to the National Securities Depository Ltd.

The yield on the 10-year bond closed 2 basis points higher at 7.06% on Monday, it closed at 7.04% on Friday.

Source: Bloomberg

The local currency closed flat at 81.94 against the U.S. dollar on Monday.

Source: Bloomberg

India's benchmark stock indices declined through Monday after a higher open. While, private banking and realty sectors declined, PSU banks were under pressure. ICICI Bank Ltd., and RIL Ltd. dragged whereas, Bajaj Finance Ltd. and TCS Ltd. advanced.

Global stocks fell on Monday, striking a more cautious note after the Wall Street’s powerful second-quarter rally lost steam at the end of last week. Chemical and construction firms paced declines in Europe, while banking stocks outperformed.  

Chinese tech companies fell with Alibaba Group Holding Ltd, JD.com Inc. and Baidu Inc. all tumbling more than 3% to drag the Hang Seng Tech index as much as 2.9% lower. 

U.S. stock and bond markets are closed Monday for a holiday. Futures contracts on the S&P 500 and Nasdaq 100 traded little changed.

The S&P BSE Sensex Index was down 216 points or 0.34% at 63,168.30 while the NSE Nifty 50 Index was 71 points or 0.37% lower at 18,755.45.

Bajaj FinanceLtd., TCS Ltd., HDFC Bank Ltd., Infosys Ltd., and HDFC Ltd. were positively adding to the change.

Whereas, Reliance Industries Ltd., ICICI Bank Ltd., Kotak Mahindra Bank Ltd., Axis Bank Ltd., and Adani Enterprises Ltd. were negatively contributing to the change.

The broader market indices outperformed the larger peers; the S&P BSE MidCap Index was down 0.08%, whereas S&P BSE SmallCap Index was higher by 0.24%.

Fourteen out of the 20 sectors compiled by BSE declined with S&P BSE Telecommunication falling the most, while six sectors advanced.

The market breadth was skewed in the favour of sellers. About 1671 stocks rose, 1984 declined, while 172 remained unchanged on the BSE.

• Company to supply 13.53 trillion Btu of natural gas to ONGC Petro Additions' Dahej plant from October 2023 to May 2026.

• Hindustan Petroleum Coroporation, Automin Car Services to establish co-branded express vehicle service centres across India. Automin Car Services is a subsidiary of Saudi Arabia-based Petromin Corporation

Source: Exchange filing

• Asian Energy Services has received a Rs 78.24 crore LOA from ONGC for 3D seismic data acquisition services in Gujarat.

Source: Exchange filing

Shares of Bank of Baroda Ltd. rose 3.27% to Rs 194.25 apiece as per 1:04 p.m., as day compared to 0.19% decline in the benchmark, NSE Nifty 50 Index.

The PSU bank became the second lender after State Bank of India to cross Rs 1 lakh crore mark. SBI's market cap is above Rs 5 lakh crore.

The scrip gained as much as 3.62% intraday, the most in over three months since March 3, 2022. Total traded volume stood at 2.4 times its 30-day average. The relative strength index was at 67.2.

Out of the 37 analysts tracking the company, 31 maintain a 'buy' rating, six recommend a 'hold' and zero 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 13.3%.

Source: Bloomberg, Exchange filing

Shares of Britannia Industries Ltd. hits new lifetime high of Rs 5,060.15 apiece on Monday. It has hit record highs at least four times in the month of June.

Around 59,000 shares of the company changed hands on the bourse so far today, against the one-month daily average volume of more than 430,000 shares. The volume of the stock traded also declined by 87% from the previous session, as per Cogencis data.

Britannia Industries has been the top gainer in the Nifty FMCG gauge in the last 10 years. The market capitalisation has increased 10 fold.

• Laurus Labs to in-license gene therapy assets, provide research grant to IIT Kanpur for advancing gene therapy products

• Additionally, the company will establish a GMP facility at the Techno Park of IIT Kanpur

Source: Exchange filing

India's benchmark stock indices reversed early gains to decline by midday in trade on Monday. While, PSU banks and healthcare sectors advanced, private banks were under pressure. RIL Ltd. dragged the indices, whereas L&T and HDFC twins were positively contributing to the changes in the indices.

Asian markets declined as Japanese and Hong Kong markets fell over 1%, whereas Chinese and South Korean shares also declined. Australian equities, on the other hand, advanced on Monday.

U.S. stock and bond markets will be closed for the Juneteenth holiday on Monday. The S&P 500 declined 0.4% on Friday to end a six-session streak of advances as investors look for more insight on Federal Reserve interest rate decisions.

As of 12:03 p.m., the S&P BSE Sensex Index was down 195 points or 0.31% at 63,189.34 while the NSE Nifty 50 Index was 51 points or 0.27% lower at 18,774.65.

HDFC Bank Ltd., Larsen and Toubro Ltd., HDFC Ltd., ITC Ltd., and TCS Ltd. were positively adding to the change.

Whereas, Reliance Industries Ltd., ICICI Bank Ltd., Kotak Mahindra Bank Ltd., Axis Bank Ltd., and Hindustan Unilever Ltd. were negatively contributing to the change.

The broader market indices outperformed the larger peers; the S&P BSE MidCap Index was up 0.45%, whereas S&P BSE SmallCap Index was higher by 0.48%.

Eleven out of the 20 sectors compiled by BSE declined with S&P BSE Bankex falling the most, while nine sectors advanced.

The market breadth was skewed in the favour of buyers. About 1,796 stocks rose, 1,692 declined, while 203 remained unchanged on the BSE.

• Shares of Inox Wind Ltd. pared gains after hitting a record high at Rs 165.3 apiece.

• Similarly, Inox Wind Energy Ltd. shares corrected after rising to an all time high of Rs 2314.75 apiece.

• Coal India has announced an employee offer for sale of more than 92 lakh equity shares, worth 0.15 equity of the company.

• The OFS will open from June 21 to June 23, for a total of nearly Rs 209 crore.

Source: Exchange filing

Shares of Jindal Steel & Power the most in a day in over 5 months after Kotak Institutional Equities upgraded the stock to 'buy'.

The stock rose 6.79% intraday on Monday, after the brokerage upgraded its rating in a June 18 note. It believes the next 12 months to be a transformational period for the company due to multiple projects being lined up.

The company announced expansion projects totaling Rs 24,000 crore for 6.3 mtpa capacity addition in May 2021, with a major part of the growth capex expected to be met by internal accruals. The projects are set to commission gradually from the second quarter of FY24 as per the brokerage's expectations and benefit its earnings for the second half of the year.

Kotak mentions expansion projects among three categories:

1. Capacity Expansion - brownfield expansion of 3.3 metric tons per annum (mtpa) by the fourth quarter of FY24, and three metric tons per annum by the second quarter of FY26, thereby increasing the total capacity to 15.9 mtpa from the current 9.6 mtpa.

2. Backward Integration - 12 mtpa pellet plant, slurry pipeline and four coal mines set to begin commissioning from the second quarter of the year over the next 4-5 quarters.

3. Forward Integration - hot strip mill (HSM) of 5.5 mtpa capacity, thin slab caster and rail mill set to begin commissioning from the third quarter of the current year, which are expected to benefit volumes and upgrade product mix.

• Lupin has announced the launch of its Thiamine Hydrochloride injections in U.S.A.

• Company along with alliance partner Caplin Steriles had received the drug approval from the U.S. FDA

Source: Exchange filing

Adani Transmission Ltd. hit an intra-day high of 1.99% on Monday as the company reaches financial closure for Rs 1,700-crore for an upcoming power project.

The power transmission firm wants to secure funding for its Mumbai transmission line project by July. A consortium of nine multinational institutions is providing the funding through an international construction facility. The funds will be utilised to build a 400-kV substation and transmission lines in Maharashtra.

The project's cost was estimated to be Rs 2,100 crore in 2021, of which the firm is now receiving Rs 1,700 crore, according to individuals close to the development.

Shares of Adani Transmission were trading at 1.27% at Rs. 821.20 apiece compared to a 0.089% loss in the NSE Nifty 50 as of 10:21 a.m.

The relative strength index of the stock stands at 45.15, indicating that the stock is neither oversold nor overbought.

The stock has one analyst tracking it, who maintains a 'buy' rating, according to Bloomberg. The consensus price target implies a downside of 70.4% over the next 12 months.

• Operations at Gujarat Pipavav Port have resumed since Saturday, June 17, 2023, as weather conditions normalised.

• Operations had been suspended since June 10 due to Cyclone Biparjoy.

Source: Exchange filing

A strong growth in high-income and upper middle class households will drive Nykaa's beauty and personal along with fashion segments ahead of the market, according to brokerages.

• Nomura maintains 'buy' with target price of Rs 183, implying a potential upside of 27%.

• Jeferries maintains 'buy' rating with target price Rs 200 apiece, implying a potential upside of 39%.

Shares of FSN E-Commerce Ventures Ltd. were trading 1.52% higher at Rs 146.55 apiece, compared to a flat Nifty 50 as of 10:14 a.m.

The stock rose as much as 2.39% intraday.

Total traded quantity so far in the day stood at 2.8 times the 30-day average. Of the 22 analysts tracking the stock, 16 maintained 'buy', two suggested 'hold', while four analysts recommended 'sell'. The consensus price target implies a potential upside of 23.4% over the next 12 months.

Shares of Axiscades Technologies Ltd. jumped on Monday after the company agreed to acquire 100% stake in Add Solution GmbH late on Friday, Jun. 19, 2023.

Looking for a strategic foothold in the automobile space along with offshoring opportunities, the company had announced its acquisition of the German automotive solution provider for 5.5 million euros (Rs 49.27 crore).

Shares of Axiscades Technologies gained 5.00% to Rs 402.20 as of 10.10 am, compared to a 0.03% decline in the benchmark NSE Nifty 50.

The total traded volume so far in the day stood at 2.3 times its 30-day average. The relative strength index was at 63.16.

The analyst tracking the company maintains a 'hold' rating, according to Bloomberg data. The average 12-month consensus price target implies a downside of 3.8%.

Shares of Shriram Finance Ltd. rose the most in over six months after 99 lakh shares or 2.6% equity changed hands in a bunch, as per the Bloomberg data. The buyers and sellers were not immediately known.

Piramal Enterprises owns 8.3% stake in the company as of March 31, while Shriram Capital holds 18%, as per Bloomberg data.

Shares of Shriram Finance Ltd. advanced 4.60% to Rs 1,466 apiece as of 09:52 a.m., compared to a 0.04% advance in the NSE Nifty 50. The scrip has rose as much as 7.09%, the most in over six months since Nov. 30, 2022.

The average traded volume so far in the day stood at 101.1 times its monthly average. The relative strength index was at 65.

Out of the 34 analysts tracking the company, 24 maintain a 'buy' rating, nine recommend '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 upside of 7.8%.

Source: Bloomberg, Exchange filing

The broader market indices outperformed the larger peers; the S&P BSE MidCap Index was up 0.53%, whereas S&P BSE SmallCap Index was higher by 0.51%.

Fifteen out of the 19 sectors compiled by BSE advanced while four sectors declined.

The market breadth was skewed in the favour of buyers. About 1,900 stocks rose, 1,050 declined, while 156 remained unchanged on the BSE.

Source: BSE

Reliance Industries Ltd., ICICI Bank Ltd., Hindustan Unilever Ltd., State Bank of India and NTPC Ltd. were the negatively adding to the change in the Nifty 50 Index.

L&T Ltd., Bajaj Finserv Ltd., Titan Co., Bajaj Finance Ltd., and Infosys Ltd. were positively adding to the change.

India's benchmark stock indices advanced on Monday after closing at a record high on Friday, the fourth week of advance.

Asian markets were mixed as Hong Kong and Chinese shares declined, Japanese stocks were marginally higher and Australian equities advanced.

U.S. stock and bond markets will be closed for the Juneteenth holiday Monday. The S&P 500 declined 0.4% on Friday to end a six-session streak of advances as investors look for more insight on Federal Reserve interest rate decisions.

At pre-open, the S&P BSE Sensex Index was up 89 points or 0.14% at 63,473.15 while the NSE Nifty 50 Index was 47 points or 0.25% higher at 18,873.30.

At pre-open, the S&P BSE Sensex Index was up 89 points or 0.14% at 63,473.15 while the NSE Nifty 50 Index was 47 points or 0.25% higher at 18,873.30.

Source: Bloomberg

• The yield on the 10-year opened flat at 7.03% on Monday, it closed at 7.04% on Friday.

Source: Bloomberg

• The local currency opened flat at 81.95 against the U.S. dollar on Monday.

• It closed at 81.94 on Friday.

Source: Bloomberg

• U.S. Dollar Index at 102.3

• U.S. 10-year bond yield at 3.76%

• Brent crude down 1.31% at $75.61 per barrel

• Nymex crude down 1.04% at $71.03 per barrel

• SGX Nifty up 0.02% at 18,902 as of 7:36 a.m.

• Bitcoin down 0.05% at $26,457.70

• L.G. Balakrishnan & Bros.: Promoter LG Farm Products bought 6,845 shares, LGB Auto Products bought 64,000 shares, LG Sports bought 21,000 shares, and Arjun Karivardhan sold 91,845 shares on June 15.

• Pidlite Industries: Promoter Group Neerav Parekh bought 9,572 shares between June 14 and June 15.

• Sandur Manganese & Iron Ores: Promoter Group Yashodara Devi Shiva Rao Ghorpade sold 1,456 shares between June 12 and June 15.

• Garnet International: Promoter Suresh Gaggar bought 7,500 shares on June 15.

• S&T Corporation: Promoter and Director Ajaykumar Savai sold 22,070 shares on June 14.

• Praveg: Promoter Group Patel Ashaben Vishnukumar sold 2.86 lakh shares between June 14 and June 16.

• Aurionpro Solutions: Promoter and Director Amit Sheth sold 1 lakh shares on June 14.

• Advanced Enzyme Technologies: Promoter Group Atharva Green Ecotech sold 88,795 shares; Promoter & Director Vasant Rathi bought 5.15 lakh shares; Promoter Group Rasika Vasant Rathi bought 8,684 shares between June 14 and June 15.

Chambal Fertilizers: Promoter Zuari Industries created a pledge of 2 lakh shares on June 13. 

• IIFL Finance: DSP Mutual Fund bought 50 lakh shares (1.31%), and FIH Mauritius Investments sold 50 lakh shares at Rs 500 apiece.

• Kalyan Jeweller: Citigroup Global Markets Mauritius bought 44.2 lakh shares (0.43%), Franklin Templeton Mutual Fund - Franklin India Smaller Companies Fund bought 35.18 lakh shares (0.34%), Franklin Templeton Mutual Fund - Franklin India Taxshield Open bought 38.79 lakh shares (0.38%), Franklin Templeton Mutual Fund A/Câ  Franklin India Flexi Cap Fund bought 86.54 lakh shares (0.84%), Nomura Funds Ireland Plc Nomura Funds Ireland India Equity Fund bought 35.98 lakh shares (0.34%), Nomura Funds Ireland Plc Nomura Funds Ireland India Equity Fund bought 85.02 lakh shares (0.82%), TNTBC As The Trustee Of Nomura India Stock Mother Fund bought 42.25 lakh shares (0.41%), BNP Paribas Arbitrage bought 1.68 crore shares (1.63%) and Highdell Investment bought 6.41 crore shares (6.22%) at 113.1 apiece

• IKIO Lighting: Quant Quantamental Fund bought 6.01 lakh shares (0.77%), Quant Multi Asset Fund bought 60.02 lakh shares (0.77%) at Rs 409.08 apiece, and NK Securities Research bought 16.34 lakh shares (2.11%) at Rs 407.7 apiece.

• Piramal Pharma: The Vanguard Group Inc Ac Vanguard Total International Stock Index Fund bought 62.02 lakh shares (0.51%) at Rs 94.71 apiece, and Caisse DE Depot ET Placement DU Quebec sold 10.57 crore shares (0.88%) at Rs 94.48 apiece.

• Aavas Financiers: Small Cap World Fund bought 7.08 lakh shares (0.9%) at Rs 1,350.02 apiece.

• Landmark Cars: Bajaj Finance sold 2.25 lakh shares (0.28%) at Rs 690.03 apiece.

• Ex-Date Dividend: Craftsman Automation, Hindustan Unilever

• Ex-Date Rights Issue of Equity Shares: Vintage Coffee and Beverages

• Record-Date Rights Issue of Equity Shares: Vintage Coffee and Beverages

• Adani Enterprises: The company’s unit, Adani Digital Labs, has signed a share purchase agreement to acquire a 100% stake in Stark Enterprises. Stark Enterprises, also known as Trainman, is an online train booking and information platform.

• Axis Bank: Axis Bank appointed former RBI Deputy Governor NS Vishwanathan as non-executive part-time chairman with effect from Oct. 27.

• Castrol India: Castrol and Mahindra Insurance Brokers have signed an agreement to distribute insurance policies. The deal will allow Castrol Auto Service workshops to distribute eligible insurance policies, and these workshops will be able to register as cashless claim sites with insurance companies.

• Trident: The company’s unit, Trident Home Textiles, incorporated a wholly-owned subsidiary, Trident Global B.V., in the Netherlands. Trident Global will carry out the wholesale business of textiles, paper, non-food consumer goods, and clothing accessories.

• Axiscades Technologies: The company agreed to acquire a 100% stake in Add Solution GmbH for 5.5 million euros (Rs 49.27 crore).

The Australian dollar and U.S. equity futures rose in early Asian trading on Monday amid signs of improving ties between the U.S. and China, while contracts for benchmarks in Asia showed muted moves.

The small advance on Monday follows positive signs that Sino-U.S. relations will thaw and ongoing optimism that China will unleash fresh stimulus to boost its flagging recovery.

U.S. stock and bond markets will be closed for the holiday on Monday. The S&P 500 declined 0.4% on Friday to end a six-session streak of advances as investors look for more insight on Federal Reserve interest rate decisions.

Brent crude was trading around $76 a barrel, and West Texas Intermediate was around $71. The yield on the 10-year U.S. Treasury note was trading at 3.76%, whereas Bitcoin was below the $27,000 level.

At 7:36 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was up 0.02% at 18,902.

India's benchmark stock indices ended at a record closing high after advancing for the fourth week in a row on Friday. While banks and non-banking financial companies led the rally, the IT and real estate sectors were under pressure. The Indian rupee strengthened by 24 paise to close at Rs 81.94 against the U.S. dollar on Friday.

Overseas investors in Indian equities were net buyers for the fourth day in a row on Friday; however, the worth of the equities they bought was the lowest in a week since June 8. Foreign portfolio investors mopped up stocks worth Rs 794.8 crore, while domestic institutional investors too snapped out of a three-day selling streak to turn net buyers and bought equities worth Rs 681.3 crore, the NSE data showed.