Nifty Bank index fell 1.14 per cent to end at 34,605. Image: ReutersShare Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and Nifty 50 ended over half a per cent down on Thursday, a day of weekly options expiry. BSE Sensex fell 179 points or 0.34 per cent to 52,323.33, while the broader Nifty 50 index lost 76 points or 0.48 per cent to settle at 15,691. IndusInd Bank, NTPC, Dr Reddy’s Lab, Maruti Suzuki, Axis Bank, Bajaj-Auto, Bharti Airtel, HDFC Bank, State Bank of India (SBI), Housing Development Finance Corporation (HDFC), were top index losers. On the flip side, Tata Consultancy Services (TCS), UltraTech Cement, Infosys, Asian Paints, Tech Mahindra, RIL, HCL Tech were index gainers. Except for Nifty FMCG and Nifty IT indices, all the sectoral indices ended in red, lead by Nifty Metal index. Nifty Bank index fell 1.14 per cent to end at 34,605.
Highlights
Portugal and Juventus star Cristiano Ronaldo knocked $4 billion off global beverage giant Coca-Cola company’s market capitalization earlier this week by removing two bottles placed in front of him. The five-time Ballon d'Or winner, also a well-known fitness enthusiast, removed the two bottles of Coca-Cola and instead placed a bottle of water in front during a pre-match press conference. Soon after Cristiano Ronaldo’s actions, the New York Stock Exchange-listed Coca Cola company saw $4 billion shaved off of its market capitalization, The Guardian reported. Coca-Cola is the official sponsor of Euro 2020.
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The index closed below 15700 which is a matter of concern. Traders should take profits from their long trades and re-evaluate the markets. It is not recommended to go short. It is a time to assess if there is a shift in the short term trend from bullish to sideways or bearish. Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
BSE Sensex fell 179 points or 0.34 per cent to 52,323.33, while the broader Nifty 50 index lost 76 points or 0.48 per cent to settle at 15,691.
The market witnessed profit booking following the global trends. The market continues to resist above 15750 and has taken a dip at 15620. If market closes below the levels of 15650, it might see a correction till the levels of 15470-15500. The momentum indicators like RSI, MACD indicating a small correction in the markets. Ashis Biswas, Head of Technical Research at CapitalVia Global Research
BSE Sensex fell 150 points or 0.29 per cent to 52,352, while the broader Nifty 50 index was down 69 points or 0.44 per cent to 15,698
Lockdowns imposed by the states in April and May to contain the second wave of the deadly COVID-19 pandemic has likely led to the economy contracting 12 per cent in the June quarter as against 23.9 per cent contraction in the same quarter in 2020, says a brokerage report. The economy had its worst contraction on record in FY21 at 7.3 per cent as the 2.5 months of unplanned lockdown announced by the centre with just a four-hour notice had crippled the economy in the first quarter with a massive 23.9 per cent contraction, which improved to -17.5 per cent in the second quarter.
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Infosys share price surged over half a per cent to a new record high of Rs 1,492 apiece in intraday on BSE. The stock has surpassed its previous high of Rs 1,489.40, touched on Wednesday. The stock has gained for the nine consecutive sessions, rising 7.3 per cent. Analysts see another 8.5 per cent upside in the stock from the current levels. Infosys has broken out of the supply zone of 1450-1470 now the same area will become support, said an analyst. “On the higher side, the stock may zoom up to 1560-1610. On the lower side, one should maintain a stop loss of 1420,” Vishal Wagh, Head of Research, Bonanza Portfolio Ltd, told Financial Express Online
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Lockdowns imposed by the states in April and May to contain the second wave of the deadly COVID-19 pandemic has likely led to the economy contracting 12 per cent in the June quarter as against 23.9 per cent contraction in the same quarter in 2020, says a brokerage report.
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Franklin Templeton Mutual Fund (MF) on Thursday said it has returned Rs 17,777 crore to unit holders of six shuttered debt schemes till June 15. This amounts to 71 per cent of assets under management (AUM) as on April 23, 2020, when the fund house shut its six debt mutual fund schemes citing redemption pressures and lack of liquidity in the bond market. Further, cash to the tune of Rs 580 crore was available for distribution as on June 15, Franklin Templeton MF said in a statement. (PTI)
Walmart Inc’s Flipkart and Amazon.com Inc have filed legal challenges against the resumption of an antitrust investigation into their business practices, according to sources and a legal filing viewed by Reuters.
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Private sector lender Kotak Mahindra Bank on Thursday said its life insurance arm expects to incur a loss of up to Rs 275 crore for the quarter ended June 2021 due to high fatalities in India during the second wave of COVID-19.
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We have incorporated preferential allotment of 45.4mn shares to the promoter (LIC). However, we expect further need of capital considering the demand environment and elevated NPAs. Maintain Hold/EW in EAP with a revised TP of Rs470 (Rs432 previously), corresponding to 1.2x FY23E P/Adj. Book (~1x FY23E book earlier). Emkay Global Financial Services
On the second day of bidding, Dodla Dairy and Krishna Institute of Medical Sciences (KIMS) initial public offerings continue to attract investor’s interest. While subscription figures are improving, both the IPOs have also been gaining momentum in the grey market. After getting off to a muted start, Dodla Dairy was now commanding a premium of Rs 75-85 per share, while KIMS was trading at a premium of Rs 60-67 per share. So far, Dodla Dairy’s Rs 520 crore IPO has been subscribed 2.02 times by investors while KIMS’ Rs 2,143 crore issue has been subscribed to 0.33 times.
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Shyam Metalics and Energy (SMEL) is likely to announce the IPO share allotment next week on June 21, 2021. The issue received a subscription of 121.43 times, becoming the highest subscribed IPO of FY21 so far. The Rs 909-crore issue received bids for over 256.11 crore equity shares against an offer size of 2.1 crore equity shares. The initiation of refunds or unblocking of funds from ASBA accounts will take place on June 22, 2021. While the equity shares will be credited to depository accounts on June 23, 2021.
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The commentary by the US Fed does regarding sustained policy support via no change in asset purchase program, unchanged policy rate in 2021 and transitory nature of inflation does send a signal for the RBI. From the Indian markets' perspective, the upward revision in inflation forecast has dampened sentiments and the equity markets have opened in the red today morning. The biggest challenge for the RBI will be the recent spike in consumer and wholesale price inflation in May'21 and the skepticism about its persistence. The unexpected spike in retail inflation does add to the uncertainty for the next MPC policy in August'21. The RBI has been explicitly emphasizing on a higher weightage to reviving sustained growth on a durable basis and continuing to mitigate the impact of COVID-19 on economy, while ensuring inflation remain within the target range. One will have to wait for the next inflation print for June'21 and the progress of the economic recovery via high frequency data to gauge the next policy action. CARE Ratings
Punjab National Bank, SBI Life Insurance Company, and Indus Towers were the three top large-cap buys by Mutual Funds in the month of May, data sourced by ICICI Direct showed. Meanwhile, Hindustan Zinc, Britannia Industries, and Colgate Palmolive were the most sold large-cap stocks in the previous month. The mutual fund industry saw net inflows of Rs 10,500 crore in May -- highest since March 2020 -- as stock markets resumed rally and inched close to all-time highs. The assets under management of domestic equity funds increased 7.7% on-month to Rs 11.1 lakh crore during the month.
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A sharp recovery in US dollar followed by the US Federal Reserve’s decision to keep its rates near zero and projection for two rate hikes by the end of 2023, dampened the sentiment of gold. Optimistic global economic sentiment and performance of risky assets are also weighing investor interest in the yellow metal. Prices are likely to correct further as long as it stays below the support of $1845. Anyhow, next major downside obstacle is seen at $1755. A close above $1915 is required to negate the short term bearish expiation in prices. MCX Aug: Weak bias to continue if the resistance of Rs 48500 remains capped the upside. Major support is seen at Rs 46800, a break of which, weak momentum would continue in coming sessions. Hareesh V, Research Head Commodities at Geojit Financial Services
The FOMC meet has sent out mixed signals. The decision to keep rates unchanged at 0 to 0.25 levels, maintain asset purchases at $120 a month and declaration that monetary policy will continue to give powerful support to growth are supportive for markets. But Fed's language is mildly hawkish since there are indications of bringing the rate hikes forward. Fed chief's remark that " inflation can be more persistent than we thought" is a signal that the Fed will be serious about tackling inflation by withdrawing accommodation at the right time. The rise in US 10-year bond yield by 10 bp to 1.58% and the Dollar index moving up to 91.50 are negatives for emerging markets like India. However, it is important to note that the Fed has raised the 2021 US GDP forecast to 7% from 6.5% earlier. This means higher EPS growth and better prospects for equities. Back home in India, Covid data continues to improve and reopenings are gathering momentum favouring unlock trades. Some correction in the market now is desirable since it would make the market healthy. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
The Central Government’s decision to offer credit incentives worth Rs 50,000 crore to boost the healthcare infrastructure is a reprieve that was largely required in this pandemic situation to provide quality healthcare to the community. This will enable companies to access the necessary credit to develop higher infrastructure, procure advanced superior technologies and adding to the human resources, with the Government as the guarantor. RBI’s recent announcement regarding on-tap liquidity windows for banks worth Rs 500 billion to extend credit to health services and vaccine manufacturers until March 2022 will definitely compound the credit that is needed to contentedly magnify India’s healthcare infrastructure. The healthcare sector in India, which was expected to grow to USD 372 billion in 2022, will surely surpass these estimates and become a major contributor to the nation’s overall economic growth. Vivek Talaulikar, CEO at Global Hospitals
India Pesticides Rs 800-crore IPO is scheduled to open for subscription next week on June 23, 2021. Agrochemical technicals company’s issue will close on June 25. The public issue comprises fresh issue of shares worth Rs 100 crore and offer-for-sale (OFS) of Rs 281.4 crore by promoter Anand Swarup Agarwal and Rs 418.6 crore by selling shareholders.
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The Federal Reserve is committed to using all of its powers to help the U.S. economy during this difficult period, in order to achieve its maximum employment and price stability objectives. The central bank kept its benchmark policy rate goal range unchanged at zero to 0.25 percent, where it has been since March 2020. According to the quarterly estimates, 13 of the 18 authorities were in favour of at least one rate by the end of 2023, the figure will have risen. Bond yields rose and equities plummeted for a second day after Federal Reserve officials indicated that the stimulus that has propelled the recovery from the pandemic will be reduced. Gold price at 47700 gaps down by 800 Rs and Silver open at 70300 open gaps down by 1200. Support for gold looking at 47500 & 47300. For Silver support is 69800 and below that market may touch towards 69000. Kshitij Purohit, Lead Commodities & Currency at CapitalVia Global Research
Gold prices in Indian on Thursday plunged to a one-month low, following an overnight crash in international markets. Gold August futures gave up Rs 48,000 per 10 grams, tumbling Rs 782 or 1.61 per cent to Rs 47,724. In the previous session, it closed at Rs 48,506. Silver July futures tanked below Rs 71,000 per kg, and were ruling Rs 1,1175 or 1.64 per cent down at Rs 70,293 per kg.
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The index opened with a gap down and is now struggling to keep above the 15700 level which is a crucial support for the Nifty. If we break this level on a closing basis, we would need to evaluate the next steps. Stops would also get triggered below this level. If we do not break 15700 and make a u-turn, traders can expect a rally up to 16000. Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
Barring Nifty Realty index, all the Nifty sectoral indices were trading in the red, lead by Nifty Bank, Nifty Metal, Nifty Financial Services down up to 0.9 per cent
Asian Paints, HCL Tech, NTPC, Sun Pharma, Titan Company, Infosys among top index gainers
Axis Bank, Bajaj Finance, Housing Development Finance Corporation (HDFC), Bajaj Finance, Kotak Mahindra Bank, Tech Mahindra, ICICI Bank were among top Sensex losers
BSE Sensex was trading 273 points or 0.52 per cent down at 52,228.18, while the broader Nifty 50 index tanked 97 points or 0.61 per cent to 15,670
Rakesh Jhunjhunwala-backed Nazara Technologies announced that it has signed a binding term sheet to acquire a majority stake in Arrakis Tanitim Organizasyon Pazarlama San. Tic. Ltd. Sti. (Publishme) the largest mobile game publishing agency in the Middle East and Turkey. Nazara will invest an approx. amount of Rs. 20 Cr for acquiring 69.82% stake by way of primary and secondary transaction through its subsidiary. Publishme is a full-service games marketing and publishing agency which works extensively with gaming publishers in Turkey and the MENA region.
"Indian Benchmark Indices are expected to open on a subdued note on account of global cues. US stocks dropped after the Federal Reserve's quarterly summary of economic projections showed some policymakers have moved up their timetable for interest rate hikes. US Fed released forecasts that show they anticipate two interest-rate increases by the end of 2023 (previously projected 2024). Asian stocks opened lower after U.S. futures extended losses on Thursday. Both FIIs and DIIs were net sellers Rs870cr and Rs874cr in yesterday session. Key companies announcing their quarterly results today Power Grid Corporation, Natco Pharma, Jammu & Kashmir Bank, DB Corp, Basant Agro Tech, Gyscoal Alloys etc. Immediate support and resistance for Nifty 50 are 15,600 and 15,850 respectively," said Mohit Nigam, Head, PMS - Hem Securities.
On hawkish fed’s tone US dollar index jumped to 91.50 levels overnight and other developed and emerging market currencies were seen taking a toll. The global risk-on sentiment was seen disappearing as demand for safest security- US treasuries jumped and yield rose to 1.58%. On the back of this, US equities corrected by 0.70%-0.80% and currently Asian markets are trading lower by the same. As a result of this, the Indian Rupee was seen trading lower around 73.70 in the NDF market. For the day, it is expected to trade in the range of 73.45-73.90. Onto that, recently released RBI’s monthly bulletin has confirmed that central bank is offloading their forwards, encashing into cash and buying in the spot market. Overall, the Indian Rupee is likely to take a further hit from both the central bank’s actions. Hence, the short-term range for the USDINR revises upward to 73.20-74.50. Amit Pabari, managing director, CR Forex Advisors
BSE-listed companies such as Natco Pharma, Jammu & Kashmir Bank, Power Grid Corporation of India, DB Corp, Basant Agro Tech, Gyscoal Alloys, Global Vectra Helicorp, HealthCare Global Enterprises, Hindustan Media Ventures, IFB Agro Industries, Indostar Capital Finance, Khadim India, Kingfa Science, Nava Bharat Ventures, Novartis India, Power Mech Projects, Royal Orchid Hotels, Siel Financial Services, and Tube Investments of India, will announce their January-March quarter earnings on June 17.
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Foreign Institutional Investors (FII) were net sellers of domestic stocks on Wednesday, pulling out Rs 870 crore. Domestic Institutional Investors (DII) were also net sellers, pulling out Rs 874 crore.
Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Hyderabad: Prices of Petrol and Diesel were left unchanged on Thursday by oil marketing companies. Petrol price in Delhi today stands at Rs 96.66 per litre, while diesel in the capital city is retailing at Rs 87.41 per litre today. Rates have been hiked 25 times since May 4. The price of petrol in Delhi has increased by Rs 5.97, while diesel price has surged Rs 6.38 per litre since the rate revision began. Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices on a daily basis in line with benchmark international price and foreign exchange rates.
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The public issues of Shyam Metalics and Sona Comstar closed yesterday. Shyam Metalics was subscribed 121.43 times by investors. Sona Comstar’s IPO was subscribed 2.28 times with all but NIIs oversubscribing their portion. KIMS IPO was off to a good start on the first day, with retail investors already oversubscribing their portion of the issue and total subscription at 0.27 times. Meanwhile, Dodla Dairy’s IPO was oversubscribed on day 1 with retail investors bidding for 2.73 times their quota. Overall subscription stood at 1.40 times at the end of day one.
On the weekly options expiry day, the expected wider trading range for NSE Nifty 50 index is 15,600-15,900; while 35,000 might act as a pivotal level for Bank Nifty. Both Nifty 50 and Bank Nifty indices ended in negative on Wednesday. Analysts expect volatility and limited upside in the market on the weekly options expiry day today. India VIX, the volatility index, cooled off 0.86 per cent from 15 to 14.87 levels since last Thursday’s close. India VIX ended yesterday at the lowest point since February 2020. Analysts say any further fall in the fear gauge might push the Nifty 50 index higher.
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In overnight trade on Wall Street, the three main US stock indices closed down. The Dow Jones Industrial Average fell 0.77 per cent, the S&P 500 lost 0.54 per cent, and the Nasdaq Composite dropped 0.24 per cent.
Asian stock markets were also trading lower post US Fed meeting outcome. Japan’s Nikkei 225 fell 1.11 per cent while the Topix index dipped 0.62 per cent. South Korea’s Kospi declined 0.65 per cent.
SGX Nifty tanked 96.50 points or 0.61 per cent to trade at 15,679 on Singaporean Exchange, as US Federal Reserve signaled that broad changes in policy may happen sooner than expected
Domestic equity markets took a breather on Wednesday and closed in the red, a day after touching fresh all-time highs. On the closing bell, S&P BSE Sensex was at 52,501 while the 50-stock NSE Nifty was 15,767. On Thursday, ahead of the weekly expiry session, SGX Nifty was trading nearly 100 points lower, hinting at a weak start for domestic equities. Global cues were also negative after Wall Street indices fell after US Fed signalled it would hike rates in 2023. Asian peers were under pressure during the early hours of trade.
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