Stock Market Today: Nifty Closes At New Record; Sensex Sees Best Winning Rally In Four Months

-The local currency weakened 20 paise to close at an all-time low of 83.65 against the US dollar.

-It closed at 83.45 on Wednesday.

Source: Bloomberg

The Nifty recovered from Wednesday's fall and the Sensex logged its best winning streak in four months to close at their highest levels as Reliance Industries and private banks led the gains.

The Nifty recorded its highest close of 23,567, up 51 points or 0.22% from previous close and the Sensex closed at its highest level of 77,478.93, up by 141.34 points or 0.18% .Intraday, both the indices gained over 0.4%.

"With a Spinning Top candlestick pattern, nothing has changed for Nifty50 i.e. lower side is protected at 23,340 while 23,660 will be considered as resistance," said Aditya Gaggar, director of Progressive Shares. "For the past couple of days, the Index has been oscillating in a range, breakout on either sides will provide a clear direction."

Shares of Reliance Industries Ltd., ICICI Bank Ltd., HDFC Bank Ltd., Axis Bank Ltd., and Kotak Mahindra Bank Ltd. contributed the most to the gains.

While those of Mahindra & Mahindra Ltd., Sun Pharmaceutical Industries Ltd., Bharti Airtel Ltd., State Bank Of India, and NTPC Ltd weighed.

Most sectoral indices were higher at close. Nifty Realty and Nifty Metal rose around 2%, the most.

Market breadth was skewed in favour of buyers. Around 2,291 stocks advanced, 1,546 stocks declined, and 138 stocks remained unchanged on BSE.

Broader markets outperformed benchmark indices. The S&P BSE Midcap and Smallcap settled 0.55% and 1.00% higher, respectively.

On BSE, 13 sectors advanced, and seven declined out of 20. The S&P BSE Realty rose the most, and the S&P BSE Auto declined the most among other sectors.

Supplies 100 freight wagons to Mozambique's Port of Nacala

Source: Exchange Filing

• Talks of yuan falling to 7.50/$ may put pressure on rupee

• Dollar/yuan rate currently at 7.26 yuan per dollar

• Traders expect rupee's fall limited to 83.75/$

• Oil importers' month-end dollar demand may also weigh

• Provisional payroll data shows 8.87 lakh new members enrolled with EPFO during April 2024

• Increase of 31.29% seen in net member addition in April v/s March 2024.

• New member data shows dominance of the 18-25 age group.

• 55.5% of the total new members in April 2024 are in the 18-25 age bracket

• Among new members 2.49 lakh are new female members.

• Net- member addition is highest in Maharashtra, Karnataka, Tamil Nadu, Gujarat and Haryana.

• 14.53 lakh members exited and subsequently rejoined EPFO

Source: PIB

-The local currency weakened 17 paise to an all-time low of 83.62 against the US dollar.

-It closed at 83.45 on Wednesday.

Source: Bloomberg

India's benchmark stock indices were trading higher through midday on Thursday, tracking gains in heavyweights Reliance Industries Ltd., HDFC Bank Ltd., and Kotak Mahindra Bank Ltd.

At 12:04 p.m., the NSE Nifty 50 index was trading 34.20 points, or 0.15%, higher at 23,550.20, and the S&P BSE Sensex gained 112.62 points, or 0.15%, to trade at 77,450.21.

Intraday, the Nifty 50 rose 0.30% to 23,587.70, and the Sensex rose 0.32% to 77,588.31.

"For the past two trading sessions, we have seen a consistent up-move. The Nifty 50 index snapped its five-day winning streak Wednesday and formed a small bearish candlestick pattern, which basically indicates some amount of profit taking is very likely," according to Nilesh Jain, vice president, technical and derivative research, Centrum Broking. 

Centrum Broking expects some consolidation, with a slightly positive bias going forward. On the upside, 23,700 is the resistance for the Nifty, and on the downside, there is multiple support at 23,500, 23,400-23,350, Jain said. "Some amount of volatility is also expected going forward, as month-end futures and options expire next week."

As of 12:05 p.m., the NSE India Volatility Index was trading 1.84% lower at 13.46, compared to Wednesday's close of 13.71.

Reliance Industries Ltd., HDFC Bank Ltd., Kotak Mahindra Bank Ltd., Hindustan Unilever Ltd., and Axis Bank Ltd. were the contributors to the Nifty 50.

Mahindra & Mahindra Ltd., Sun Pharmaceutical Industries Ltd., Bharti Airtel Ltd., Titan Co., and Bajaj Finance Ltd. weighed on the index.

On the NSE, eight sectors advanced, one remained flat, and three declined. The NSE Nifty Metal led the sector with the most gains. The NSE Nifty Pharma was the worst performer.

Broader markets outperformed benchmark indices, with the S&P BSE Midcap and Smallcap trading 0.43% and 1.00% higher, respectively, through midday on Thursday.

On BSE, 13 sectors advanced, three declined, and four remained little changed. The S&P BSE Metal gained nearly 2% to become the top performing sector, while the S&P BSE Healthcare was the worst-performing sector.

Market breadth was skewed in favour of the buyers. Around 2,353 stocks rose, 1,307 stocks fell, and 159 stocks remained unchanged on BSE.

Suzlon Energy rose as much as 5% to hit Rs 51.34, its highest level since June 4. Five analysts tracking the company has 'buy' rating on the stock and average 12 month target price implies upside of 13.4%, according to Bloomberg.

Approves raising up to Rs 1,000 crore via NCDs

Source: Exchange filing

Rategain Travel Technologies Ltd. has risen as much as 8.28% to Rs 814.40 apiece, the highest level since May 21. It was trading 6.02% higher at Rs 797.40 apiece, as of 10:38 a.m. This compares to a 0.03% decline in the NSE Nifty 50 Index.

It has risen 94.04% in 12 months, and 9.47% on year to date basis. Total traded volume so far in the day stood at 8.3 times its 30-day average. The relative strength index was at 65.13.

Six analysts tracking the company maintains a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 18.3%.

• Stick to private sector banks - valuations attractive with 16-18% ROE

• Private banks less affected by expected credit loss regulations and carry contingency buffers

• Stay away from PSU Banks, Insurance and Fintechs due to regulations, declining fundamentals, unfavourable risk reward

• PSU Banks will see falling ROEs

Recommendation Changes

• Upgrades Kotak Mahindra Bank and City Union Bank from neutral

• Kotak's target revised from Rs 1,860 to Rs 2,025 and City Union Bank target revised from Rs 160 to Rs 180

• Stocks have underperformed

• Valuations are cheap

• Risk-reward is favourable

• Upgrades SBI Life from Neutral to Outperform target of Rs 1,600 revised to Rs 1,750

• Downgrades SBI from Neutral to Underperform Target of Rs 615 revised to Rs 665

• Downgrades Bajaj Finance from Neutral to Underperform; Reduces target from Rs 8,100 to Rs 6,600 citing lower growth, falling ROE, delayed rate cut cycle

Top Picks

• Axis, IndusInd, HDFC Bank

• NBFC: Shriram Finance, LIC Housing

• Insurance: SBI Life

Shares of CE Info Systems (MapMyIndia) surged over 9% today after Goldman Sachs initiated coverage with a Buy recommendation and a Target Price of Rs.2,800 on the stock.

PNB Housing Finance's stock fell as much as 6.55% during the day to Rs 785 apiece on the NSE. It was trading 4.55% lower at Rs 801.75 apiece, compared to a 0.16% decline in the benchmark Nifty 50 as of 9:56 a.m.

It has risen 36% in the last 12 months and 2.7% on an year-to-date basis. The total traded volume so far in the day stood at 23 times its 30-day average. The relative strength index was at 54.

Nine out of the 11 analysts tracking the company have a 'buy' rating on the stock,and five suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 14.4%.

Uno Minda Ltd. climbed to fresh high on Thursday after Goldman Sachs initiated coverage with a 'Buy' rating citing the company is well positioned for growth in the industry.

Shares of Sapphire Foods, the restaurant operator for KFC, Taco Bell and Pizza Hut went up by 7% on Thursday after the company announced on Wednesday that its board of directors have approved the subdivision of the company’s shares.

Shares of Som Distilleries & Breweries Ltd. plunged nearly 9% on Thursday to the lowest level in over two months after the sister company's licence was suspended after children were rescued from its factory.

On the NSE, Som Distilleries' stock fell as much as 8.62% during the day to Rs 105.90 apiece, the lowest since April 1. It pared losses to trade 3.77% lower at Rs 111.53 per share, compared to a 0.05% decline in the benchmark Nifty at 9:35 a.m.

The share price has risen 7.1% in the last 12 months but fell 2.07% on a year-to-date basis. The total traded volume so far in the day stood at 18 times its 30-day average. The relative strength index was at 36.11.

An analyst tracking the company has a 'buy' rating on the stock, according to Bloomberg data.

Benchmark equity indices opened higher on gains in HDFC Bank and Kotak Mahindra Bank but slipped into losses as heavyweight Reliance Industries and Infosys weighed.

At pre-open, the Nifty was at 23,586.15, up 70.15 points or 0.30% and the Sensex was at 77,554.83, up by 217.24 points or 0.28%.

"Market will be focused on the GST Council meeting on 22nd June later this week," said Vikas Jain, senior research analyst at Reliance Securities. "Technically, Nifty continues to hold above 23500 zones, indicating an uptrend to continue."

Shares of HDFC Bank Ltd., Kotak Mahindra Bank Ltd., Mahindra & Mahindra Ltd., and Axis Bank Ltd. contributed the most to the gains.

While those of Reliance Industries Ltd., Sun Pharmaceutical Industries Ltd., Infosys Ltd., Power Grid Corp. Of India Ltd., and ICICI Bank Ltd. capped the upside.

Most sectoral indices opened higher with Nifty Bank leading.

Broader indices outperformed with the S&P BSE Midcap rising 0.38% and S&P BSE Smallcap rose 0.57%.

Nine out of 20 sectoral indices on the BSE rose and 11 fell out of 20.

At pre-open, the Nifty was at 23,586.15, up 70.15 points or 0.30% and the Sensex was at 77,554.83, up by 217.24 points or 0.28%.

• Revenue up 45.2% at Rs 232 crore vs Rs 160 crore

• Ebitda up 39.7% at Rs 67 crore vs Rs 48 crore

• Margins down 114 bps at 28.9% vs 30%

• Net profit at Rs 1.4 crore vs net loss of Rs 13.8 crore

The yield on the 10-year bond opened flat at 6.97%.

It closed at 6.97% on Wednesday.

Source: Clearing Corporation India

• Initiates 'Sell', target Rs 900, downside: 12.5%

• Slower growth in body engineering related R&D spend

• Tata Motors and JLR relationships could make broadening the Luxury Automaker customer base harder

• Ongoing normalization in engineering revenue from VinFast which is ramping down

• Expects moderate Ebitda expansion by FY27 to 19.3%

• TATE trades at a fwd P/E of 50x, (vs 51x historical) and a 3.5x PEG ratio vs peers at 2x.

• The local currency strengthened by 2 paise to open at 83.43 against the US dollar.

• It closed at 83.45 on Wednesday.

Source: Bloomberg

• Operations at Rakholi & Chinchpada plants partially affected due to labour strike

• Loss of production per day of stike estimated to be around Rs 8 crore

Source: Exchange filing

• Initiates 'Buy' with target Rs 1,350, upside 28%

• Company well positioned for growth in industry

• Select businesses benefiting from ongoing premiumization shift to SUVs, premium motorcycles and EV scooters

• Currently enjoys 50%+ share in auto switches, 40%+ in 4W alloy wheels & sub-25% in Lighting/Seating

Key Catalysts:

• Korean OEM opportunity

• EV powertrain / motor supply optionality

• Upcoming capacity in Alloy wheels / Lighting

  Risks include peak switches share, autos demand slowdown, growth focus over free cash flow

• Initiates 'buy', Target Rs 2,800, upside: 39%

• Co well-poised to benefit from an early leadership position in fast-growth end-markets

• Company has over 80% market share in Auto OEM Navigation Software

• Forecast a 38% FY24-FY27E revenue CAGR & steady Ebitda margin in 38% to 41% range

Catalysts:

• Pickup from Hyundai/Kia contract win;

• Pickup in faster-growth IoT business; and

• Increase in EV led N-CASE adoption.

CEIF trades at a forward P/E of 53 times Risks: Hardware-related margin dilution, open-source maps, M&A integration risk.

• Retains 'Buy' with a target of Rs. 2,885 (17% upside)

• FY25 is likely to mark a gradual recovery for HUL

• Q1FY25 is likely to be muted with negative pricing of 2%

• Harsh summer impacting volumes of hot beverages in Q1FY25

• Expects pricing growth to come back in H2FY25

• Expects rural volume growth to likely recover on the back of potentially good rainfall in H2FY25

• HUL has ample room to premiumise and boost per capita consumption

• In talks with Kato Works, a manufacturer of mobile cranes and excavators to establish JV in India

• JV intends to produce medium and large sized cranes

• Plans to sign a formal contract as both companies reach an agreement

Source: Exchange filing

• Preferred PSUs: SBI, Coal India, GAIL, HPCL, Bank of Baroda

• PSU index up 113% since Dec 2022

• Strong business narratives, growing order book driving a rerating

• PSU loss pools have reduced consistently over last 5 years

• Expects profitability of PSUs to improve

• Govt focus on localization, higher capex, "Make In India" catalyze improvement

• Expects recovery in PSUs’ contribution to earnings

Management Meet

• Expects range bound NIMs until rate cut action

• NIMs better than envisaged

• Pricing to improve in some products

• Growth momentum to sustain, expect 16% growth in FY24-26E

• Credit costs to normalise gradually in the 0.5%-0.7% range

• Reaffirms stance on ROA sustainability

• Sets price band in the range of Rs 267-281 per share

• Offer to open on June 25, close on June 27, for retail investors

Source: Company statement

• 1-year loan prime rate unchanged at 3.45%, matching estimates

• 5-year loan prime rate unchanged at 3.95%, matching estimates

• China weakens Yuan fix to 7.1192 per US dollar

• Daily reference rate lowest since November amid forex pressure

Source: Bloomberg

To invest up to Rs 350 crore in BFRL Textiles via subscription of OCDs in multiple tranches

Source: Exchange filing

• U.S. Dollar Index at 105.25

• U.S. 10-year bond yield at 4.25%

• Brent crude up 0.05% at $85.11 per barrel

• Nymex crude down 0.23% at $81.38 per barrel 

• Bitcoin was up 0.20% at $64,983.7

• GIFT Nifty was 13 points or 0.06% lower at 23,526.50 as of 7:47 a.m.

• Nifty June futures down by 0.3% to 23,503.6 at a discount of 12.4 points.

• Nifty June futures open interest down by 0.3%.

• Nifty Bank June futures up by 2.02% to 51,353.4 at a discount of 44.65 points.

• Nifty Bank June futures open interest down by 2.12%.

• Nifty Options June 20 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 52,000 and Maximum Put open interest at 51,000.

• Securities in ban period: Balrampur Chini Mills, Chambal Fertilizers, Hindustan Aeronautics, Hindustan Copper, India Cements, Indus Tower, PEL, and Sail.

• Price band revised from 5% to 2%: Diamond Power Infrastructure.

• Ex/record Dividend: eMudhra, Larsen & Toubro.

• Ex/record AGM: Tejas Networks, Bajaj Hindustan Sugar, Orient Green Power, eMudhra.

• Moved into short-term framework: JNK India, Max Estates.

• AU Small Finance Bank: Westbridge Aif I sold 1.3 crore shares (1.94%) at Rs 650.08 apiece, while Goldman Sachs Investments Mauritius I Ltd. bought 43.34 lakh shares (0.64%) at Rs 650 apiece.

• BLS E-Services: Minerva Ventures Fund sold 4.70 lakh shares (0.52%) at Rs 281 apiece.

• Dhampur Sugar Mills: Goel Anil Kumar sold 3.5 lakh shares (0.52%) at Rs 243.02 apiece.

• Indus Towers: Vodafone Telecommunications India sold 26.56 crore shares (9.86%) between Rs 315.99 apiece and 325 apiece; Al-Amin Investments sold 2.08 crore shares (0.77%) at Rs 314.54 apiece; and Asian Telecommunication Investments (Mauritius) Limited sold 2.51 crore shares (0.93%) at Rs 311.4 apiece. Prime Metals Limited offloaded 5.6 crore shares (2.07%) at Rs 311.51 apiece and Mobilvest sold 4.29 crore shares (1.59%) at Rs 311.4 apiece. On the other hand, Authum Investment And Infrastructure Limited bought 1.49 crore shares (0.55%) at Rs 321.81 apiece, Bharti Airtel Limited bought 2.69 crore shares (0.99%) at Rs 320 apiece, Ghisallo Capital Management LLC bought 1.98 crore shares (0.73%) at Rs 311.4 apiece and SBI Mutual Fund bought 3.58 crore shares (1.32%) at Rs 311.4 apiece.

• Gland Pharma: Fosun Pharma Industrial sold 99 lakh shares (6.01%) at Rs 1,771.81 apiece, while Ubs Principal Capital Asia Limited bought 8.25 lakh shares (0.5%) at Rs 1771.05 apiece.

• Advanced Enzyme Technologies: Motilal Oswal Financial Services bought 1.1 crore shares (9.88%) at Rs 385 apiece, while Orbimed Asia Iii Mauritius sold 1.1 crore shares (9.88%) at Rs 385 apiece.

• Piramal Enterprises: Anutham Realty bought 1.08 crore shares (4.54%) at Rs 900.8 apiece, while The Srikrishna Trust sold 1.08 crore shares (4.54%) at Rs 900.8 apiece.

• Sansera Engineering: Client Ebene Limited sold 50.3 lakh shares (9.43%) at Rs 1200 apiece, Cvcigp Ii Employee Ebene Limited sold 12.23 lakh shares (2.29%) at Rs 1,200 apiece, while Custody Bank Of Japan Ltd. Re Rb Amundi India Small Cap Equity Mother Fund bought 10.93 lakh shares (2.05%), DSP Mutual Fund bought 20.83 lakh shares (3.89%), Societe Generale bought 3.58 lakh shares (0.67%), SBI Mutual Fund bought 3.64 lakh shares (0.68%) and among others at Rs 1,200 apiece.

• DEE Development Engineers: The public issue was subscribed to 2.51 times on day 1. The bids were led by institutional investors (0.02 times), non-institutional investors (5.29 times), retail investors (2.68 times), and employees reserved (7.05 times).

• Akme Fintrade India: The public issue was subscribed to 3.01 times on day 1. The bids were led by institutional investors (0.02 times), non-institutional investors (5.15 times), retail investors (4.17 times), and employees (0.56 times).

• Som Distilleries And Breweries: The Madhya Pradesh government suspended the license of Som Distilleries due to concerns about child labour. SDPL is part of the Som Group of companies, which also has Som Distilleries and Breweries Ltd., a listed firm, under its umbrella.

• Indian Oil Corporation: The company entered a joint venture with GPS Renewables for Sustainable Energy Solutions.

• Sun Pharmaceutical Industries: The company received a warning letter from the US FDA for the Dadra facility. The US FDA warning letter summarises current good manufacturing practice regulations.

• Eimco Elecon (India): The company received an order worth Rs 33.11 crore from The Singareni Collieries Company for the supply of coal mining equipment.

• PNB Housing Finance: The company’s holders offer 1.08 crore shares at a floor price of Rs 773 apiece, as per Bloomberg.

• Chemplast Sanmar: The board is to meet on June 24 to consider fundraising.

• Kaynes Technology India: The company incorporated a wholly owned subsidiary named Kaynes Holding.

• Godrej Industries: CCI approved the proposed family group re-alignment.

• Avenue Supermarts: The company has opened a new store in Tamil Nadu today. The total number of stores as of date stands at 369.

• PNC Infratech: The company’s MD and Director appeared before CBI. The company’s operations are functioning without any impediment. The company will cooperate with law enforcement agencies.

• Sapphire Foods India: The board approved splitting each share into 5.

The June futures contract of the GIFT Nifty was at 23,526.50, up by 13.5 points or 0.06% as of 7:20 a.m.

Benchmarks in the Asia-Pacific region were trading mixed on Thursday due to absence of cues from US markets, and as investors assess China's latest interest rate decision.

The Nikkei 225 was 246.68 points or 0.64% lower at 38,324.08, and the S&P ASX 200 was 3.92 points or 0.14% higher at 2,801.25 as of 06:49 a.m.

China kept its benchmark one-year loan prime rate unchanged at 3.45%, and the five-year loan prime rate at 3.95% in line with estimates.

Financial markets in the US were closed Wednesday on account of Juneteenth Day.

Brent crude was trading 0.07% higher at $85.13 per barrel as of 06:51 a.m. Gold was trading 0.14% higher at $2,331.32.

The Indian benchmark equity indices shed their early gains to settle mixed on Wednesday on bank futures expiry day as Larsen & Toubro Ltd. and Reliance Industries Ltd. dragged.

The NSE Nifty 50 settled at 41.90 points or 0.18%, lower at 23,516, while the S&P BSE Sensex ended at 36.45 points or 0.05%, higher at 77,337.59, marking the highest closing level since its inception.

Foreign portfolio investors recorded their highest-ever single-day buying of Indian shares so far in 2024 on Wednesday. The investors bought stocks worth Rs 7,908.36 crore, while domestic institutional investors also stayed net buyers for the third consecutive day on Wednesday and mopped up equities worth Rs 7,107.80 crore, according to provisional data from the National Stock Exchange.

The Indian currency weakened 4 paise to close at 83.45 against the US dollar.