The Nifty sectoral indices were largely positive, barring Nifty Metal and Nifty Pharma indices. Image: ReutersShare Market News Today | Sensex, Nifty, Share Prices LIVE: Domestic equity market benchmarks BSE Sensex and Nifty 50 fell into the red on Tuesday, after a positive start. BSE Sensex was hovering around 51,900, while Nifty 50 index gave up 15,500 after hitting a fresh record high of 15,650. Bajaj-Auto, ONGC, Housing Development Finance Corporation (HDFC), IndusInd Bank, Maruti Suzuki, State Bank of India were among top Sensex gainers. UltraTech Cement, Asian Paints, Dr Redyy’s, TCS, Nestle India, Infosys were among top Sensex laggards. The Nifty sectoral indices were largely positive, barring Nifty Metal and Nifty Pharma indices. Nifty Auto index was up neaely one per cent and Nifty Bank index 0.4 per cent.
India’s gross domestic product (GDP) shrank 7.3 per cent in 2020-21, the sharpest drop in recorded history, according to data released by National Statistical Office (NSO) on Monday. While GDP for the year’s last quarter (January-March 2021) grew by 1.6 per cent. India has now reported two consecutive quarters of GDP expansion, after having witnessed two consecutive quarters of contraction earlier in the financial year when India entered a technical recession.
Highlights
BSE on Tuesday signed a memorandum of understanding (MoU) with the trade promotion organization Electronics and Computer Software Export Promotion Council (ESC) to encourage listing of small and medium enterprises (SMEs) and startups in the information and communications technology (ICT) space. ESC will evaluate eligible SMEs and startups among its over 2,300 members comprising of ICT exporters in areas including consumer electronics, components, computer hardware, IT-enabled Services etc. for listing on BSE SME and BSE Startups exchange as per the MoU.
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Bank Julius Baer has appointed Rahul Malhotra as new Head Global India and Developed Markets based in Singapore starting 1 September 2021. He will succeed Torsten Linke to lead the onshore and offshore teams to serve our clients from the Indian diaspora in addition to covering Japan (HK, SG and CH) and the Asia team based in Switzerland. Rahul will be reporting to Jimmy Lee, Head Asia Pacific and member of the Executive Board at Bank Julius Baer.
Auto components maker Rolex Rings has received capital markets regulator Sebi’s approval to float an initial public offer (IPO). Rolex Rings’ IPO comprises fresh issue of shares worth Rs 70 crore and an offer for sale of up to 65 lakh equity stocks by Rivendell PE LLC (formerly known as NSR-PE Mauritius LLC), according to draft red herring prospectus (DRHP). Currently, Rivendell holds 45.51 per cent stake in Rolex Rings.
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The Covid 19 pandemic has fueled the concerns of a ‘K-shaped recovery’. Shape K contrasts the fate of businesses suitable to adapting in a post-Covid world versus those finding it difficult to make the transition. The IMF has already warned about a ‘Great Divergence’ whereby growth in DMs and select EMs may recover soon, while the rest may lag behind by years. Even within economies –sectors such as travel and hospitality lag far behind IT and pharmaceuticals.
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Petrol and diesel prices on Tuesday scaled new highs across the country after they were hiked for the 17th time in a month. Petrol price was increased by 26 paise per litre and diesel by 23 paise a litre, according to a price notification of state-owned fuel retailers. In Delhi, petrol hit an all-time high of Rs 94.49 a litre, while diesel is priced at Rs 85.38 per litre. Fuel prices differ from state to state depending on the incidence of local taxes such as VAT and freight charges. Read full story
Reliance Industries Ltd (RIL), Oberoi Realty and Godrej Properties stocks may rally over 20 per cent in the coming three months, analysts at ICICI direct Research said. The new consumer businesses, Jio and retail are likely to be growth drivers for the oil-to-telecom conglomerate in the coming years. While the Realty sector has been gaining upward momentum after underperforming over the past decade.
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At the initial stage, RBI had directed the initiation of resolution proceedings for 12 large accounts by banks. These 12 companies had outstanding claims of Rs.3.45 lakh crore compared with a liquidation value of Rs.73,220 crore. Resolution plans for nine companies have been approved, while liquidation orders were passed against two companies. CARE Ratings
The much awaited data from the National Statistical Office on India’s Gross Domestic Product (GDP) numbers for the January to March quarter and for the year as a whole, has been better than the expectations. But then, there are concerns. The economy grew by 1.6 per cent in the quarter and though the year saw an overall contraction of 7.3 per cent many experts were fearing worse and were therefore somewhat relieved. “The earlier expectation was that the economy will shrink a lot more,” says Mahesh Vyas, managing director and CEO of the Centre for Monitoring Indian Economy (CMIE), a leading research firm and an independent think tank.
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Escorts monthly wholesale numbers for May’21 declined by 8% MoM to 6,423 units, impacted by the second wave of Covid-19, especially in rural India. The management had shared earlier during the result call that ~65% of the dealerships were partially or fully shut and there was decline in walk-ins. Domestic sales for May’21 stood at 6,158 units while exports stood at 265 units. As per the release, the situation has eased in the last few days of May’21 and expect normalcy to return soon. The company had witnessed a strong pent up demand last year post gradual easing of restrictions and is maintaining inventory in the channel in anticipation of the same. Although the near-term performance is expected to be muted, we remain positive on Escorts from the medium-term perspective considering improving rural incomes and growth in exports. Milan Desai, Lead Equity Analyst, Angel Broking
State Bank of India (SBI) share price surged to a new 52-week high of Rs 433.80 apiece intraday on BSE. SBI stock has surpassed its previous high of Rs 433.60 hit on May 28, 2021
At 50.8 in May, down from 55.5 in April, the seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) moved closer to the no-change mark of 50.0
Bharat Electronics Ltd (BEL) share price jumped as high as 5.6 per cent to Rs 153.50 apiece in intraday on BSE. Other defence stocks such as Hindustan Aeronautics Ltd, Garden Reach Shipbuilders, Bharat Dynamics, Astra Microwave Products, BEML, Bharat Forge, Mishra Dhatu Nigam, and Mazagon Dock Shipbuilders were also trading higher.
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The markets are in fine form - we should be headed to 15900-16000 as the next plausible target. If it is not a one way move and the market corrects in between, it should be well utilized to accumulate long positions for higher targets. A strong support base is now formed at 15300 and as long as we keep closing above this level, the overall trend of the market is bullish. Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
In the Month of May 21, Bajaj Auto Ltd reported auto sales number ~114% yoy growth to 2,71,862 units which came in-line with our estimates. The company has reported domestic growth ~52% (60,830 units). On the export front, the company reported strong growth of ~142% (2,11,032). Considering strong growth in domestic and export business, we are positive on stock with a buy rating. Amarjeet Maurya - AVP - Mid Caps, Angel Broking
The ongoing bull run in the market has taken even the incorrigible optimists by surprise. FIIs, regarded as smart investors, have been caught on the wrong foot. Their sustained selling from early April to mid May has proved to be a wrong strategy and, therefore, now they are making amends through heavy purchases. Massive FII buying of Rs 2412 crores in the cash market yesterday is an indication of the likely direction of this market. The fact that India VIX is at a 52- week low also indicates the resilience of the market. Q4 FY21GDP growth rate at 1.6% and annual GDP contraction at 7.3 % are better than expectations. Q4 numbers show robust growth in construction & manufacturing. This trend is likely to sustain in the last 3 quarters of FY 22 suggesting good prospects for related industries. Nifty has clearly broken out of the upper range and the bulls are in total control. Valuation concerns are now on the back burner. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
The second wave of Covid 19 has had less adverse impact on the economy as the lockdown has been less stringent, localized and many businesses have adapted to the pandemic/lockdown. Having said that the secod wave of the pandemic has been more fatal and scarring for the households, and this will be reflected in their spending pattern. Moreover, the unorganized sector and MSME’s that are large contributors to the Indian economy, will find it extremely difficult to sustain two waves of the pandemic and the demand destruction in the last one and half years. India’s growth trajectory in the next few quarters will be strongly linked to the pace of vaccination and the time taken to control the pandemic. this would have direct bearing on business and consumer sentiments, which in turn will influence the consumption and investment scenario. Rajani Sinha, Chief Economist & National Director – Research, Knight Frank India
The better than expected data will provide relief to the central bank as it announces its credit policy later this week. Moving forward the situation is expected to improve with few states relaxing curbs. A prediction of a normal monsoon year by IMD will keep inflation in check. The upcoming festive season will provide a pickup in demand. The consistent high number of vaccination and number of cases coming down is a sentiment booster. Broadly the economic growth rate will see an uptick from Q2FY22 onwards. Pankaj Bhansali, COO, Eqaro Surety
Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold and silver prices were trading higher in India on Tuesday, on the back of positive international trends, where gold surged to a near five-month high of $1,914.26 on a weaker US dollar and inflation concerns. On Multi Commodity Exchange, gold August futures were trading Rs 134 or 0.23 per cent up at Rs 49,484 per 10 gram, as against the previous close of Rs 49,349. Silver July futures were ruling at Rs 72,668 per kg, up Rs 800 or one per cent on MCX.
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The Nifty sectoral indices were largely positive, barring Nifty Metal and Nifty Pharma indices. Nifty Auto index was up neaely one per cent and Nifty Bank index 0.4 per cent
The Rupee closed at a 15-month high on monthly basis and against its traditional depreciating May month seasonality, despite major states were under lockdown and business activities were shut. The inflows in the form of QIP, corporate borrowing and flows from MSCI & FTSE helped to pullback dollars into India. But over the last two sessions, Rupee failed to cross its move beyond 72.30 as RBI finally intervened along with the month-end oil importer’s bid. Further, peer currency- Chinese Yuan fell from a three-year high of 6.3570 to 6.3710 after PBoC went on tightening policy by raising their Cash Reserve Ratio from 5% to 7%, which led Rupee to depreciate further upto 72.65 against USD. However, RBI’s recent buying action could absorb all the flows and Rupee could restrict its gains. Overall, RBI’s action will not allow Rupee to move beyond 72.30 mark. Over the short term, we expect Indian Rupee to trade in the range of 72.30-73.20 with an upside bias. Amit Pabari, managing director, CR Forex Advisors
UltraTech Cement, Asian Paints, Dr Redyy's, TCS, Nestle India, Infosys were among top Sensex laggards
Bulls are expected to sustain their momentum in Indian equity markets looking at better than expected GDP numbers, drop in daily fresh cases of covid and increasing buying interest of FIIs. 15,430 shall act as nearest support levels while 15,300 shall act as next support. Nifty 50 needs to remain above 15,500 to continue with its upside journey. Metals could show some strength in today's trading session after showing positive trend reversal yesterday when Iron ore prices in Singapore went up by around 5% post China announced positive data on its steel industry. Indian markets will also keep a track on PMI Manufacturing data due to be posted today. Mohit Nigam, Head, PMS - Hem Securities
Bajaj-Auto, ONGC, Housing Development Finance Corporation (HDFC), IndusInd Bank, Maruti Suzuki, State Bank of India were among top Sensex gainers
Sensex was trading 73 points or 0.14 per cent up at 52,010, while the broader Nifty 50 index was trading at record high level
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
Since the last monetary policy meeting in early April, it seems like the world has changed, at least for India. COVID-19 2.0 has caught the country unawares. As we were preparing to get back to the way things were, on the back of a good fourth fiscal quarter of economic activity, the virus has hit the country, its people and the economy with a virality that has caught us off guard. When the Monetary Policy Committee (MPC) meets for the second monetary policy of FY2022, COVID 2.0 and its impact will be the most defining factor in its deliberations.
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Sensex was trading 163 points or 0.32 per cent higher at 52,101 in the pre-opening session on Tuesday
BSE-listed companies such as ITC, Balrampur Chini Mills, Gujarat Gas, Radico Khaitan, Aris International, Divyashakti Granites, Salasar Techno Engineering, Sungold Media and Entertainment, Solitaire Machine Tools, TV Vision, and VR Woodart, among others, are scheduled to release Jan-Mar quarter earnings on June 1.
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In overnight trade on Wall Street, US stocks edged higher. The S&P500 index rose 0.1 per cent, the Dow Jones Industrial Average gained 0.2 per cent, and the Nasdaq Composite was up 0.1 per cent.
Asian stock markets were trading mixed on Tuesday, Japan’s Nikkei 225 gained 0.11 per cent while the Topix index was up 0.17 per cent. South Korea’s Kospi edged jumped over half a per cent higher.
The fiscal deficit stood at 9.3 per cent of the Gross Domestic Product (GDP) in the last fiscal, better than 9.5 per cent projected in the revised estimates in the Union Budget in February. Economic activities were severely hit in the last financial year due to the coronavirus pandemic as well as subsequent lockdowns and restrictions to curb the spread of infections.
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In April 2021, the eight core sectors registered a double-digit output growth of 56.1% compared with 11.4% growth in March 2021. The high growth in output can be attributed to a low base effect (-37.9% in April 2020) as the nation-wide lockdown imposed last year brought production activities to a standstill resulting in huge output losses. The expansion in April has been led by an exponential growth in output of steel and cement. All sectors except crude oil have witnessed positive growth during the month. However, the core sector output has been lower by 15.1% in April’21 over the March’21 level with a broad-based contraction across all segments on a month-on-month basis. CARE Ratings
India’s gross domestic product (GDP) shrank 7.3% in 2020-21, the sharpest drop in recorded history, with the pandemic dealing a body blow to most sectors of the economy that was already debilitated, according to data released by National Statistical Office (NSO) on Monday. The contraction was, however, narrower than the 8% forecast in the second advance estimate put out in late February, primarily because the March quarter turned in significantly better numbers, on the back of rather board-based upswing across sectors including manufacturing, construction and electricity.
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India’s economic report card came in with better-than-expected numbers as the GDP recorded a 1.6% growth in the January-March period. The growth figures were better than the 1% median forecast by 29 economists polled by Reuters. For the full financial year 2020-21, the economic contraction came in at -7.3%, better than the government’s own -8% estimates. The agriculture sector continued to grow steadily in the quarter, while construction, electricity and other utilities posted strong growth.
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