The Nifty sectoral indices were mixed, with Nifty PSU bank index down 0.7 per cent.Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: BSE Sensex and Nifty 50 index settled one per cent higher on Monday, led by buying in Reliance Industries Ltd (RIL) and ICICI Bank stocks. BSE Sensex surged 515 points or 1 per cent to end at 51,937, the level last seen on February 18, 2021. While, NIfty 50 index made a new record closing high, ending at 15,582.80. Other Sensex gainers were Bharti Airtel, ITC, Dr Reddy’s Lab, Maruti Suzuki India, NTPC, UltraTech Cement, Asian Paints. On the flip side, Mahindra & Mahindra (M&M), Infosys, IndusInd Bank, L&T, Sun Pharma, Tech Mahindra were among index laggards. The Nifty sectoral indices were mixed, with Nifty PSU bank index down 0.7 per cent. While Nifty Metal index jumped over 2 per cent and Nifty Bank index was up 1.10 per cent
Highlights
We have successfully achieved the 15,600 target and the index is all set to approach its next target of 15900. There could be a pause or bouts of profit booking in the interim but that should be utilized to accumulate long positions for higher targets. As long as the market closes above the 15300 level, the trend remains bullish and opportunities to buy on corrections should be maximized. Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
Retail disbursements have shown healthy recovery over 2HFY21, with certain segments exceeding pre-COVID levels, while the corporate book is also showing signs of revival. Banks remain cautious on the unsecured book, resulting in lower disbursements. While the near-term outlook remains cautious due to rising cases and lockdowns in key states/territories, vaccination drives across the country would lead to a quick recovery. MOFSL estimate the loan books of private banks to grow 16%/18% over FY22E/FY23E and the loan books of large NBFCs to grow at ~12% and expect banks to gain market share from NBFCs in most segments.
The rally in Mukesh Ambani’s Reliance Industries Ltd share price may continue if current petrochemical spreads sustain, said global brokerage and research firm Jefferies in a note. Sustained petrochemical spreads could pave the way for oil-to-chemical stake sale by RIL this fiscal year, re-rating multiples and shooting the stock 45% higher from current levels. The note highlighted that polymer spreads are at decade-highs on strong downstream demand and polyester spreads are recovering. Currently, RIL share price is trading at Rs 2,170 per share -- up 10% in three trading sessions.
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We have seen a major consolidation in Reliance Industry Ltd (RIL) in the last 3 months and stock underperformance in Nifty, In the last 3 months Nifty has rallied 900 points while Reliance has corrected by 2 per cent despite being the highest weightage stock in Nifty. Commodity price in the International market is in upward momentum, same as with petrochemical products prices also, almost all petrochemical products at yearly high by this company realization will improve along with EBITDA margins for the next couple of quarters. As per the market news related to disinvestment BPCL government may give some relaxation in FDI rules & regulation to sell 52% holding of government of India in BPCL Limited, any positive news will be positive for Reliance Industry also. We expect the stock to be in upward momentum and may touch the levels of 2200 - 2250 in the coming week. Yash Gupta Equity Research Associate, Angel Broking Ltd
Gold prices traded higher, hovering around the key $1,900-level after U.S. consumer prices were reported better than expected in April hence supporting the metal as an inflation hedge. U.S. consumer prices surged in April, with a measure of underlying inflation blowing past the Federal Reserve's 2% target. The White House last week sent Congress a $6 trillion budget plan which would focus on infrastructure, education and combating climate change. This is budget plan is considered with an objective to support the economy although, it also increases the markets worry regarding the increasing debt. In this data heavy week, market participants today will focus on GDP data on domestic front. Focus will also be on the manufacturing and Service PMI data from major economies and U.S. non-farm payroll data scheduled this later week. Broader range on COMEX could be between $1898- 1925 and on the domestic front prices could hover in the range of Rs 49,100- 49,630. Navneet Damani, VP – Commodities Research, Motilal Oswal Financial Services
PNB Housing Finance on Monday said its board has approved a proposal to raise up to Rs 4,000 crore by issuing equity shares and convertible warrants to entities led by Carlyle Group firms. PNB Housing Finance’s board has approved a capital raise of up to Rs 4,000 crore, led by entities affiliated to The Carlyle Group Inc, the company said in a regulatory filing.
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Benchmark indices hit record highs in today’s trading session with Nifty touching all-time high of 15,573 intraday, led by Reliance, which has broken out of the consolidation zone, and since it has a major weightage in Nifty, its positive movement is bound to be good news for the markets. Banking & IT stocks have also supported the current rally, including the likes of SBI, ICICI Bank, Axis Bank, TCS & Infosys, to name a few. Even the derivatives data continues to be extremely bullish, which further adds to the up move. And all this on the day, when Asian markets remain weak. Receding lockdown fears and hope of better economic recovery in coming quarters, is supportive. However, as markets are at record levels, they generally tend to be extremely volatile, so caution should not be abandoned. Aamar Deo Singh, Head Advisory, Angel Broking Ltd
BSE Sensex was trading 434 points or 0.84 per cent higher at 51,856, while the broader Nifty 50 index surged to a fresh peak of 15,573.50 in intraday deals
France sends additional support to fight the surge in COVID positive cases. The shipments which are coming in will be in addition to the already provided aid. This will be the largest ever solidarity operation that France has carried out for India, thus reflecting the long standing relationship the two countries enjoy.
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Dalal Street’s current rally might be just the beginning of a multi-year massive-bull run, which could take the S&P BSE Sensex to 200,000 points in the next 10 years, said Raamdeo Agrawal, Chairman and Co-founder, Motilal Oswal Financial Services. The stock market veteran added that India has seen steady economic growth over the last few years and key indicators such as democracy, demography, digitisation, dollar reserves, and a stable government are already favourable towards India. The 200,000 target for Sensex in 10 years is nearly four times the current 51,000 levels of the index. Quick calculation shows that this is about 15% CAGR.
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BSE Sensex was trading 360 points or 0.70 per cent higher at 51,782, while the broader Nifty 50 index surged to a fresh peak of 15,540.35 in intraday deals.
The RBI’s accommodative stance, along with the recent measures announced for impacted sectors, should help financials in general. The sector has underperformed the Nifty over past few months, which presents an attractive opportunity for active stock selection given the reasonable valuations. In our first edition of the MOFSL BFSI Model Portfolio, we are overweight on ICICIBC, SBIN, and AXSB among the lending large-cap financials. Within the mid-cap space, we like MUTH, CIFC, SHTF, and AUBANK. Among the non-lending financials, we like MAXF and IPRU within Life Insurance and ISEC, SBICARD, and IIFL Wealth within Other Financials. We believe that as the recovery momentum picks pace the valuation re-rating will play an important role in stock return. We are Underweight on NBFCs in general due to the looming uncertainty surrounding the second wave and rising inflation levels. Motilal Oswal Financial Services
According to Automobiles report from Emkay Global Financial Services, May’21 volumes are likely to be hit by the second Covid-19 wave and lockdowns across states. In comparison to May’19, May’21 volumes are expected to witness a double-digit decline across segments. As volumes are not comparable yoy due to the low base last year, Emkay has weighed them against May’19 numbers. Tractors/PVs should see a lower decline in comparison with 2Ws/ CVs. Emkay Global Financial Services expects a swift recovery in volumes from Q2FY22 due to easing of lockdowns and pent-up demand.
India Q4 FY21 GDP data today: India’s economic growth is likely to have continued expanding in the fiscal fourth quarter of the last year 2020-21, with economists predicting a 1.3-3.5% on-year GDP growth in January-March. However, economists continue to expect a contraction for the full financial year 2020-21, owing to the severe lockdown seen in the initial quarters. The Central Statistics Office (CSO) will later today reveal how the Indian economy performed during the January-March quarter and the pandemic-struck full financial year. India’s GDP grew 0.4% in the October-December quarter of FY 2020-21.
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In the late morning deals, the broader Nifty 50 index surged over half a per cent to hit a fresh record high of Rs 15,526.85
The price for the third tranche of SGB is fixed at Rs 4889/gm. Investment in Sovereign Gold Bond is picking up pace, as per data the Tranche-1 of SGB saw investment in excess of Rs 2500 crores. The high interest was also due to lower prices of Gold which reflected in the subscription price for the SGB. The subscription figures for FY21 were impressive and FY22 is likely to mirror it. Gold prices show promise of upside from current levels in the near future, but heavy flows in equities may affect the rally for the yellow metal. As we move forward, the economic data, monetary policy, and stance by RBI & US Fed, any further stimulus package from India, the US, and other advanced nations will guide the gold prices along with the concerns related to the virus. Nish Bhatt, Founder & CEO, Millwood Kane International
Banks in India will remain closed for up to nine days in June, including second and fourth Saturdays, and Sundays. According to the Reserve Bank of India (RBI), banks in a few states will be closed for different occasions next month in June 2021, other than weekly holidays. Banks will not be closed for all nine days for all states as holidays vary from state to state. Only the gazetted holidays are observed by banks all over the country.
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Auto numbers of May will be very dismal and some market reaction can be expected in this segment. Banking appears to be on a strong wicket in the light of new reliefs announced for the MSME segment. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
The index has a minor resistance between 15450-15485. If we can cross this hurdle, the markets should be able to conquer 15600-15700. The support for the Nifty has been upgraded to 15300-15350 and as long as we are able to hold this level on a closing basis, we are in bullish territory and minor dips or mild corrections can be utilized to buy into this market. Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
COMEX gold trades marginally higher by 0.35% near $1912/oz after a 0.4% gain on Friday. Gold continues to hold above $1900/oz as Fed and other central banks emphasize on continuing with loose monetary policy. However, ETF outflows and weaker demand in India amid continuing virus related restrictions might cap the gains. Gold has continued to hold above $1900/oz however any sustained rise may be challenged by pause in US dollar index fall. Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
The Indian economy’s resilience will be tested by its ability to overcome a devastating outbreak of Covid-19, although no one’s yet doubting its potential to pull off the world’s fastest pace of growth among major economies this year. The economy is on track to grow 10% in the year that began April 1, according to the median of 12 estimates compiled by Bloomberg News. That’s after several economists downgraded their forecasts in recent weeks to factor in local curbs on activity, including in India’s political and commercial hubs.
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On the domestic front, all eyes move to GDP data for the March quarter, and infrastructure output slated to be out today. Also, the next focus remains on the RBI monetary policy committee (MPC) meeting scheduled for Friday, June 4 with expectations that RBI will maintain its accommodative stance considering the impact of the second covid wave on the economy. The continued trend of falling cases has raised investors’ hopes of unlocking the economy sooner. On the other hand, any intervention by RBI shall cap sharp gains in the rupee. Technically, the USDINR pair gains strong support near 72.30 levels. On the north side, it is facing strong resistance near 72.70 and 73.20 levels. Amit Pabari, managing director, CR Forex Advisors
The Nifty sectoral indices were mixed, with Nifty Auto index, down 1.4 per cent. While Nifty Pharma and Nifty Metal indices gained 0.7 per cent, each
Mahindra & Mahindra was the worst performer on Sensex, followed by Hosuing Development Finance Corporation (HDFC), Infosys, IndusInd Bank, Tech Mahindra
ITC, Asian Paints, Bharti Airtel, ICICI Bank, Dr Reddy's, RIL were among top Sensex gainers
Nifty resolved higher and surpassed the lifetime high of 15400. The weekly price action formed a significant bull candle carrying higher high-low, indicating acceleration of upward momentum. We expect, Nifty to resolve higher and head towards our revised target of 15700 in June, as it is 123.6% external retracement of February-April correction (15432-14151).
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BSE Sensex was trading in red, down 53 points at 51,369, while the broader Nifty 50 index was above 15,400
Check live Sensex, Nifty levels
The index is moving in a Higher Top and Higher Bottom formation on the weekly chart indicating positive bias. The chart pattern suggests that if Nifty crosses and sustains above 15500 level it would witness buying which would lead the index towards 15650-15800 levels. However if the index breaks below 15300 level it would witness profit booking which would take the index towards 15200-15100.
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Commodity prices traded higher during the week passed by with Bullion prices extended weekly gains after witnessing a minor correction in mid-week. Base metals complex edged higher recovering from recent lows on higher demand optimism. Crude oil prices rallied by more than 4% following strong US economic data.
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BSE-listed companies such as Chemcon Speciality Chemicals, Aurobindo Pharma, Honeywell Automation India, Jamna Auto Industries, JBF Industries, Kolte-Patil Developers, Lloyds Steels Industries, Magma Fincorp, Man Industries, Marksans Pharma, Narayana Hrudayalaya, Prakash Industries, Rupa & Company, Shilpa Medicare, Uttam Galva Steels, Vascon Engineers, and Venus Remedies, among others will release their Jan-Mar quarter earnings on May 31.
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Foreign portfolio investors (FPI) turned out to be net sellers for second month in a row by taking out nearly Rs 1,730 crore from Indian markets in May as second wave of the coronavirus pandemic spooked investor sentiment.
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US stocks climbed on Friday as both the Dow and S&P 500 indexes clinched their first weekly gain in the past three weeks. The Dow Jones Industrial Average rose 0.19 per cent, the S&P 500 gained 0.08 per cent, and the Nasdaq Composite added 0.09 per cent.
Stock markets in Asia were trading in the negative territory on Monday morning with Japan’s Nikkei 225 falling 0.71 per cent while the Topix index fell over half a per cent. South Korea’s Kospi edged 0.14 per cent lower.
India’s economic outlook has weakened again, albeit slightly, with worst-case scenario forecasts suggesting the toll from the coronavirus pandemic could be much deeper, stoking fears the job crisis may worsen over the coming year, a Reuters poll found. Renewed restrictions to curb the current coronavirus wave have stalled economic activity, leaving many millions out of work and pushing economists – who have broadly been bullish – to downgrade their views for the second time since early April.
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