Stock Market Today: Nifty, Sensex Extend Record Rally To Day Four As HDFC Bank, ICICI Bank Lead

-The local currency closed 15 paise higher at 83.41 against the US Dollar.

-It's the highest closing level since Jun 7.

-It closed at 83.56 on Friday.

Source: Cogencis

Indian equity indices saw another day of records as the benchmarks extended gains to the fourth session with the financial pack contributing the most.

Intraday, the Nifty hit its all-time high of 23,579.05 points and Sensex hit 77,366.77 points for the first time. Broader indices joined the benchmarks as Nifty Smallcap 250 hit its lifetime high of 17,028.10 and Nifty Midcap 100 hit its all-time high of 55,523.30.

The Nifty closed at their highest level at 23557.90, up by 0.39% or 92.30 and the Sensex also recorded its highest close of 77,301.14 up by 0.40%or 308.37 points.

"For the trend following traders now, 23500/77000 would be the key support level," said Shrikant Chouhan, Head Equity Research, Kotak Securities. "As long as the market is trading above the same, the bullish sentiment is likely to continue. "

Shares of ICICI Bank Ltd., HDFC Bank Ltd., Power Grid Corp. Of India, Infosys Ltd., and Mahindra & Mahindra Ltd. contributed the most to the gains.

While those of Maruti Suzuki Ltd., ITC Ltd., Tata Consultancy Services Ltd., Tata Steel Ltd., and UltraTech Cement Ltd. capped the upside.

Sectoral indices were mixed at close. Nifty Realty and Nifty Bank were the top gainers while Nifty Media and Nifty Pharma fell the most.

Market breadth was skewed in favour of buyers. Around 2,177 stocks rose, 1,822 stocks decline, and 151 stocks remained unchanged on BSE.

Broader markets ended higher. The S&P BSE Midcap and Smallcap settled 0.43% and 0.96% higher, respectively.

The stock rose to its lifetime high of Rs 2334.55.

• Demand shot up to 89 GW in North India on June 17

• 25-30% power imported from neighboring regions

• All power utilities advisee to maintain high state of alert and minimise outages.

• North India facing severe heat wave conditions

• IIMD forecasts heat wave to abate from June 20

Source: PIB

US FDA completes audit at manufacturing facility in Canada, issues 15 observations

Source: Exchange Filing

UK-based arm to invest additional €3 million in Ethris

Source: Exchange filing

Domestic Business CEO Manjari Upadhye resigns effective July 11

Source: Exchange Filing

• Total passenger traffic at 1.08 crore in May, up 7% YoY

• Total aircraft movement at 69,055, up 6% YoY

Source: Exchange filing

• Alembic Pharmaceutical Ltd. received a final US Food and Drug Adminstration approval for ANDA of Dabigatran Etexilate capsules.

• Dabigatran Etexilate is equivalent to Pradaxa Capsules.

• Alert: Dabigatran is used to treat stroke and blood clots in adults.

Source: Exchange Filing

• Asian Energy JV received an order worth Rs 148 crore for coal evacuation system.

Source: Exchange filing

Benchmark equity indices continued to trade higher through midday on Tuesday, tracking gains in shares of ICICI Bank Ltd. and HDFC Bank Ltd. As of 12:16 p.m., the NSE Nifty 50 was 66.10 points or 0.28% higher at 23,531.70, and the S&P BSE Sensex was 241.73 points or 0.31% higher at 77,234.51.

During the day, the Nifty rose as much as 0.48% to record high 23,579.05, and the Sensex rose 0.49% to a fresh intraday high of 77,366.77.

For the Nifty, JM Financial Services expects continuation of the upward move till the 23,700–750 level as the current resistance level is broken.

Perhaps that could be the levels where some profit booking can be expected. As of now, the markets look quite good to test the level. A very important support level is 23,400, according to Soni Patnaik, assistant vice president of JM Financial Services.

The markets look strong and put writing is seen shifting higher. The only concern is that the Nifty Bank has not performed, according to Sneha Seth, a senior analyst from Angel One.

ICICI Bank, HDFC Bank, Infosys Ltd., Mahindra & Mahindra Ltd. and State Bank of India led the gains in the Nifty.

Maruti Suzuki India Ltd., Bharti Airtel Ltd., UltraTech Cement Ltd., Tata Motors Ltd. and Kotak Mahindra Bank Ltd. weighed on the index.

Nine out of the 12 sectors on the NSE advanced, with the Nifty IT rising the most. The Nifty Pharma touched a record high in the morning trade before falling to become the worst performing sector. Earlier in the day, the Nifty Realty and Auto also rose to an all-time high.

The broader markets rose as the BSE MidCap and SmallCap were trading 0.32% and 0.79% higher respectively as of 11:57 a.m. Both the indices scaled an all-time high in the first half of the trade. The Nifty Midcap 150 and Smallcap 250 indices rose to the highest level.

Seventeen out of the 20 sectors on the BSE advanced, with Consumer Durables rising the most and Healthcare declining the most.

The market breadth was skewed in favour of the buyers as 2,120 stocks rose, 1,727 declined and 177 remained unchanged on the BSE.

First cabinet CCEA likely tomorrow at 5:00 pm.

Source: NDTV

• Key Infra Sectors: Renewable energy, roads, real estate

• Expects investments in key infra sectors to grow 38% in FY25/26

• Expects investments in mentioned sectors to hit Rs 15 lakh crores

• Surge on need of higher green power share, better connectivity, rising residential and commercial demand

• Renewables: Sustainable energy transition a key growth driver

• Roads: Order books at 2.5 times of revenue, to support 11% growth in highway construction

• Real estate: Expect commercial office net leasing demand to grow 8-10% in FY25/26

• The local currency strengthened by 17 paise to 83.39 against the US Dollar.

• It is the highest level since June 7.

• The currency opened at 83.51 a dollar.

• It closed at 83.56 on Friday.

Source: Cogencis

Ajith Kumar KK to take charge as MD and CEO for 3 years effective June 20

Source: Exchange filing

Piramal Finance crosses Rs 50,000 crore in retail loans, aims to double retail AUM by FY28

Source: Exchange filing

• Ratio between GDRs and shares has been changed to 1:1 from 1:60

• 59 new GDRs were issued for every GDR held, in accordance with the new ratio

Source: Exchange filing

Shares of One 97 Communications Ltd. rose to the highest level in over three months on Tuesday as Paytm parent confirmed to be in talks with Zomato Ltd. to sell its entertainment business.

The potential sale of its entertainment business, which includes movies and ticketing business, a component of the fintech company's marketing service is one option under discussion, One 97 Communications said in an exchange filing.

Declared successful bidder for Todupura Iron Ore Block District in Karauli, Rajasthan

Source: Exchange filing

Shares of Hindustan Aeronautics Ltd touched a new life high of Rs 5,498.6 after it informed the exchanges that the Ministry of Defence has issued a Request for Proposal to the company for the procurement of 156 Light Combat Helicopters.

• Maintains 'Underweight' with target Rs 7, Downside: 58%

• Capex priority will be on 4G coverage followed by capacity enhancement

• Company believes capex can drive substantial gains over next 12 months

• In talks with lenders to raise Rs 250 billion in debt for capex

• Needs government support in FY26/27 after expiry of spectrum moratorium for spectrum repayments

• Intends to generate internal cash generation up to repay annual government dues from FY28

• Given its cash crunch, company prefers converting deferred amounts of debt into equity from FY26

• Even after this, company would still have $21 billion in debt with no clarity on repayment

• Remain underweight as equity story is complicated

• Lists at Rs 138.10 on NSE vs issue price of Rs 93

• Lists at Rs 135 on BSE vs issue price of Rs 93

• Lists at a premium of 45.2% on BSE

Source: Exchanges

Gets order in the range of Rs 1,000-2,500 crore for its buildings and factories business

Source: Exchange filing

Shares of HFCL Limited hit a 22 year high on Tuesday, as the European Commission determined that HFCL was the only Indian company not engaged in dumping of optical fibre cables in European markets in a statement issued on 14 June, 2024.

The scrip rose as much as 1.33% to hit Rs 1,507, its highest since June 12.

Shares of Som Distilleries and Breweries Ltd. went down nearly 16% on Tuesday after one of the company's contractors came under police investigation for child labour concerns.

The company blamed the associate private firm for not verifying employees age and terminated all contracts with them.

Som Distilleries and Breweries Ltd. fell as much as 15.74% during the day to Rs 105 apiece on the NSE, the lowest since March 28. It was trading 6.69% lower at Rs 115.98 apiece, compared to a 0.25% advance in the benchmark NSE Nifty 50 as of 9:18 a.m.

It has risen 12.05% in the last 12 months. The relative strength index was at 37.25.

One analyst tracking the stock has a 'buy' rating according to Bloomberg data.

Benchmark equity indices extended their rally in the fifth consecutive session today with Infosys contributing the most to their gains.

At pre-open, the Nifty was at 23570.80, up by 0.45% or 105.20 points and the Sensex was at 77235.31 higher by 0.32% or 242.54 points.

"Expect the rally in domestic bourses to continue, backed by strong economic data from both India and the US," said Vikas Jain, senior research analyst at Reliance Securities. "Cooling May CPI data to a one-year low, robust IIP data, falling US inflation, and confidence in the NDA coalition's continued focus on economic growth will be positive for market sentiment."

Shares of Infosys Ltd., M&M, Adani Ports & Special Economic Zone, Adani Enterprises, and ITC contributed the most to the gains.

While those of Tata Consultancy Services, HDFC Bank, Maruti Suzuki, Reliance Industries, and ICICI Bank capped the upside.

Most sectoral indices rose with Nifty Metal and Nifty Realty leading. Nifty Pharma was the only sectoral index that fell.

Market breadth was skewed in the favour of buyers. Around 2,086 stocks rose, 1,068 fell and 142 remained unchanged on the BSE.

Broader indices also rose. S&P BSE Midcap rose 0.17% and the S&P BSE Smallcap rose 0.61%.

Seventeen out of 20 sectoral indices on the BSE rose and three fell. S&P BSE Consumer Durables rose the most.

At pre-open, the Nifty was at 23570.80, up by 0.45% or 105.20 points and the Sensex was at 77235.31 higher by 0.32% or 242.54 points.

Defence Ministry issues request for proposal for procurement of 156 light combat helicopters

Source: Exchange filing

• Nomura maintains neutral on Nykaa; Target Rs 203 (+20%)

• BPC: FY24-28E target of mid-high 20% GMV CAGR for online

• BPC: 40% GMV CAGR for retail store GMV

• BPC Focus: expand market, adding global brands & developing in-house brands

• Fashion: to grow 3.5x by FY30 with focus on premium

• Fashion: EBITDA positive by FY26E, mid-single digit by FY27E and 10%+ in steady state

Nomura view:

• Like approach of identifying growth avenues and remaining ahead of the industry

• Believe our estimates of ~26%/19% GMV CAGRs can have upside

• Co may need to prioritise growth over margins in fashion

• Factoring 17% revenue CAGR FY25-40, Long term EBITDA margins at 15%

• Stock in fair value zone trading at 5x FY26 EV/ sales

In pact for superannuation and wealth administration services

Source: Exchange filing

• The yield on the 10-year bond opened flat at 6.99%.

• It closed at 6.98% on Friday.

Source: Cogencis

• The local currency strengthened by 4 paise to open at 83.52 against the US dollar.

• It closed at 83.56 on Friday.

Source: Bloomberg

• Maintains sell on RBL Bank; Target Rs 257

• Management interaction to revisit key priorities, initiatives and journey to FY26

• Priorities: predictability in return ratios; Branch driven asset growth; KPIs for each business segment; Cross-sell

• RoA guidance of 1.4-1.5%

How do they get there:

i) Sustained pretax RoA contribution of 2.1% from its core businesses

ii) Break-even and scale-up of recently launched retail products

iii) Gradual rise in NIM, operating and fee income

• Build RoAs of 1.1%/1.2% and RoE of >10%/12% for FY25/26E

• Await better visibility on structural improvement

Bank Of America Maintains 'Buy'

• Target Rs 1,785 upside: 19.9%

• Several mega deal wins make outlook for Q1FY25 better

• Demand environment remain cautious.

• Deal pipeline denominated by cots pull out deals

• Guidance bakes in easy assumptions hence macro uncertainties would not put pressure

• Certifications on AI managed services enables Infosys to gain greater market share

• Project maximus on its track to gain profitability

Jefferies on Infosys

• Maintains Buy, TP: Rs 1,630, upside: 9.5%

• Growth in FY25 should by front ended

• Infosys is investing heavily to augment it’s AI capabilities

• Demand remains weak, pressure on discretionary spends continues

• Deal pipeline is healthy, led by cost-optimisation deals

• Disconnect between deal wins and growth to reduce in FY25

• Margins have stabilised in FY24, aims to improve via Project Maximus

• Large deal signing could affect margins in the near term

• Will continue to pay 85% of FCF to shareholders over 5 year period

• Red Flags from June NADAC Trends; Advise Caution

• NADAC latest pricing trends show a sharp double-digit decline in Apr-June’24

• Top-20 baseline products for Auro/Cipla/Reddy’s/Lupin,

• 80% of products are seeing double-digit QoQ decline in 1QFY25.

• Average drug prices in June’24 is indicating 20%+ QoQ decline for Dr Reddy’s/Lupin and14% QoQ decline for Aurobindo and Cipla

Dr Reddy’s

• Rates sell with a target of Rs. 5,200; downside 14.5%

• Witnessed competition in its top products in the US

• Impact of the pricing may be higher than the other companies

• Impact of pricing higher due to with commoditized portfolios

Aurobindo Pharma

• Maintains non-consensus sell with a TP of Rs. 1,040; downside 17.3%

• Aurobindo has highest exposure of US generics among the Indian pharma cos.

• If generic pricing trends start reflecting, possibility of margins softening in 1Q/2Q FY25E

Rates sell with a TP of Rs 170

Takeaways From Annual Investor Day

Expects 25-30% CAGR in BPC and 35-40% CAGR in Fashion over FY24-28E

In the beauty segment Management aims for:

• >25% growth over FY24-28E

• doubling store count in 3-4 years to 400+ (>50/yr vs <40/yr in last 3 years)

In Fashion Management aims for:

• 2.5-3x growth in NSV over next 3 years

• 150-200bps expansion in gross margins and

• 1300-1600bps EBITDA margin expansion

In Owned brands co. aims for a big improvement in deliveries allowing for express deliveries in metros

• Reiterate Underperform with target price of Rs5010; downside 18%

• IQVIA suggests co losing market share in its top US products

• Expects impact of loss in market share to reflect in H1FY25

• Top Products contributes $417mn

• R&D cost could remain elevated

• New launches to offset price erosion but do not drive meaningful growth

• Strategic acquisition may fill gRevlimid void

Motilal Oswal Maintains 'Neutral' On Vedanta

• Target price Rs 500; 13.7% potential upside

• Well positioned; focus on structural cost rationalization to drive earnings

• Capex plans are progressing well to drive the next level of growth

• Demerger is on track and is anticipated to be completed by the end of CY24

Nuvama Maintains 'Buy' on Vedanta

• Target price Rs 644 (earlier Rs 542); 46.4% potential upside

• Cost-reduction initiatives and value-addition at Vedanta are reassuring

• FY25 zinc CoP likely to be around Q4FY24 level of ~USD1,050/t

• Expect aluminium to surpass zinc profits by FY26e, and both segments to contribute ~84% to FY26e EBITDA (67% in FY24)

• Raise FY25e/26e EBITDA by 5%/6% on operational efficiency, lower aluminium CoP and higher premiums for aluminium and zinc

• Approval by lenders shall allow for demerger of companies by end-FY25

• Hindustan Zinc shall soon take steps for its future growth

• Hindustan Zinc may raise refined metal capacity from 1.12 mtpa to up to 2 mtpa

• Hindustan Zinc may raise silver capacity to 1,500 tpa from 800 tpa in next 5 years

• Signs agreement to acquire 55% stake in Aadifidelis Solutions and its affiliates

• Acquisition to be made at an enterprise value of Rs 190 crore

Source: Exchange filing

• Appoints Rajeev Agarwal as non-executive independent director for 5 years effective immediately

• Neeraj Arora resigns as non-executive independent director effective June 17

Source: Exchange filing

• U.S. Dollar Index at 105.37

• U.S. 10-year bond yield at 4.26%

• Brent crude flat at $84.23 per barrel

• Nymex crude down 0.12% at $80.23 per barrel 

• Bitcoin was down 2.29% at $64,855.84

• GIFT Nifty was 22 points or 0.1% lower at 23,589 as of 7:07 a.m.

• Nifty June futures up by 0.25% to 23,466.65 at a premium 1.05 of points.

• Nifty June futures open interest down by 0.65%.

• Nifty Bank June futures up by 0.26% to 50,042.4 at a premium of 40 points.

• Nifty Bank June futures open interest by 1.63%.

• Nifty Options June 20 Expiry: Maximum call open interest at 24,000 and maximum put open interest at 23,400.

• Bank Nifty Options June 19 Expiry: Maximum call open interest at 50,000 and maximum put open interest at 50,000.

• Securities in ban period: Balrampur Chini Mills, GMR Infra, Hindustan Copper, India Cements, SAIL, SUN TV network.

• Price Band revised from 20% to 10%: PTC Industries.

• Price Band revised from 5% to 20%: Schneider Electric Infrastructure.

• Ex/record Dividend: HDFC AMC, L&T Finance, Tata Investment Corp., Bank of India.

• Ex/record AGM: Adani Wilmar, Tata Investment Corp., Bank of India.

• Moved into short-term Framework: Bajaj Hindustan Sugar, Marine Electricals, Praj Industries.

• Moved Out of Short-term Framework: Emami Realty.

• Goodluck India: Promoter Rajiv Garg created a pledge for 80,000 shares on June 13.

• Restaurant Brands Asia: Goldman Sachs Funds - Goldman Sachs India Equity Portfolio sold 40.59 lakh shares (0.82%) at Rs 105.53 apiece.

• Nocil: BNP Paribas Financial Markets sold 12.83 lakh shares (0.77%) at Rs 269.1 apiece and Discovery Global Opportunity Mauritius Ltd. bought 12.83 lakh shares (0.77%) at Rs 269.1 apiece.

• IdeaForge Technology: Celesta Capital II Mauritius sold 2.55 lakh shares (0.61%) at Rs 707.63 apiece.

• TCNS Clothing: TA FDI Investors sold 5 lakh shares (0.79%) at Rs 552.06 apiece.

• Dalmia Bharat: Dalmia Bharat Refractories bought 16 lakh shares (0.85%) at Rs 1,876 apiece and Keshav Power Pvt. sold 16 lakh shares (0.85%) at Rs 1,876 apiece.

• One97 Communications: BNP Paribas Financial Markets bought 5.85 lakh shares (0.09%) at Rs 428.05 apiece and Marshall Wace Investment Strategies - Eureka Fund sold 5.85 lakh shares (0.09%) at Rs 428.05 apiece.

• Shriram Finance: BNP Paribas Financial Markets bought 14.67 lakh shares (0.39%) at Rs 2,684.3 apiece, and Marshall Wace Investment Strategies - Eureka Fund sold 14.67 lakh shares (0.39%) at Rs 2,684.3 apiece.

• Bharti Airtel: The company pre-paid Rs 7,904 crore to clear deferred liabilities for spectrum acquired in 2012 and 2015. The company fully pre-paid all deferred liabilities related to spectrum acquired in 2012 and 2015.

• Adani Enterprises: Promoters increased their stake in the company to 73.95% from 71.93% after acquiring 2.02% equity between September 2023 and June 2024.

• SBI: The company will raise MCLR by 10 bps across tenures effective June 15.

• Jubilant Pharmova: The company’s US-based arm to voluntarily prepay a term loan worth Rs 626 crore and the company's arm to invest $50 million to expand its radio pharmacy network in the US.

• RVNL: The company emerged as the lowest bidder for a project worth Rs 160 crore from East Coast Railway.

• Life Insurance Corp.: LIC has clarified that no formal proposal has been initiated to enter the health insurance market.

• Adani Power: The company incorporated a wholly owned subsidiary in Singapore.

• InterGlobe Aviation: The company amended its existing pact with Pratt & Whitney affiliate International Aero Engines, IAE, to give compensation to the company for the unavailability of engines.

• Rites: The company signed a MoU with Damodar Valley Corp. for innovation in rail infrastructure.

• Supriya Lifescience: CEO and KMP Rajeev Kumar Jain will be retiring from the services effective June 14 on attaining the age of superannuation.

• Blue Dart: The company appointed Dipanjan Banerjee as chief commercial officer.

• Elgi Rubber: The company’s Brazilian unit has executed an agreement for the sale of land to Sergio Augusto Pimentel Zeraik, Brazil for Rs 4.5 crore.

• Pidilite Industries: The company’s Industria Chimica, Italy Joint Venture ICA Pidilite entered into an agreement with ICA for licencing of certain UV technology from ICA.

• Vashu Bhagnani Industries: The company signed a deal with Pooja Leisure and Lifestyle for the transformation of commercial buildings in Juhu.

• Inox Wind: The company incorporated four wholly owned subsidiaries.

• Som Distilleries and Breweries: The company terminated the contract with vendor services of its associated company over allegations of child labour. Police launched an investigation after the government's child protection agency found out children working at its liquor factory in Madhya Pradesh.

• One97 Communications: Paytm is in talks with Zomato Ltd. to sell its movie and ticketing business. The fintech firm is going to focus on its core business: payment and financial services along with goods commerce.

The June futures contract of the GIFT Nifty was 22 points or 0.1% lower at 23,589 as of 7:07 a.m.

The benchmarks in the Asia-Pacific region rebounded Tuesday morning, tracking sharp gains on Wall Street, while awaiting the Reserve Bank of Australia's rate decision.

The Nikkei 225 was trading 280.51 points or 0.74% higher at 38,382.95, and the S&P ASX was 64.40 points or 0.84% higher at 7,764.70 as of 06:45 a.m.

The S&P 500 settled at record high at 5,473.23 on Monday. The Dow Jones Industrial Average and the Nasdaq Composite ended 0.49% and 0.95% higher respectively.

Gold was up 0.09% at $2,321.19 an ounce, while Brent crude advanced 0.12% to $84.35 a barrel.

Indian benchmark indices ended at a fresh closing high in the last session of the eventful week, tracking sharp gains in shares of HDFC Bank and Reliance Industries.

The NSE Nifty 50 closed 66.70 points, or 0.29%, higher at 23,465.60, and the S&P BSE Sensex ended at 181.88 points, or 0.24%, up at 76,992.77.

Foreign portfolio investors mopped up stocks worth Rs 2,176 crore, according to provisional data from the NSE. The domestic institutional investors purchased equities worth Rs 656 crore.

The local currency weakened by 2 paise to close at 83.56 against the US dollar.