Share Market Highlights: Sensex ends at 52,699, Nifty just shy of 15,800; Infosys, TCS gain, RIL ends deep in red

Mukesh Ambani today said that it is important for India to adapt new energy. He added that India GDP per capital $2000 while the world average is $12000. Power consumption in India is just 1/3rd of the world.  

Mukesh Ambani today said that RIL was able to acheive net debt free balance sheet much ahead of the March 2021 deadline, helped by capital raising and right issue.

Consolidated rev helped by consumer business. 50% EBITDA contribution by consumer business, said Mukesh Ambani at RIL's AGM.

India VIX, the volatility gauge, was up from intra-day lows but still in the red on Thursday. The fear gauge was sitting near 15 levels.

IT services major Wipro on Thursday said its step-down subsidiary, Wipro IT Services, has raised $750 million from an overseas bond sale. Last week, Wipro had announced that Wipro IT Services will issue US dollar denominated notes worth USD 750 million on June 23. A proposal for the same had been approved by the Board of Wipro IT Services on June 10. "Wipro IT Services LLC (Issuer)... has raised USD 750 million by the issue and allotment of 1.50 per cent notes (Notes) to qualified institutional buyers...," a regulatory filing said on Thursday.

~ PTI

After a lull over March-April 2021, price hikes in both petrol and diesel have picked up in earnest. We see marketing margins for the three OMCs (IOCL/BPCL/HPCL) rising strongly over H2FY22E post the weakness in Q1FY22 - Q2FY22 due to the second wave of CoVid. We estimate that marketing margins have jumped to more than Rs2.5/ltr for petrol and over Rs4/ltr for diesel in the last month. Therefore, we believe average margins for FY22E can rise to Rs3.5-4/ltr for both fuels, supporting steady operating earnings growth (ex-inventory). Additionally, with a gradual improvement in refining metrics also being seen in Singapore GRMs, we believe the three OMCs will see stronger times ahead. Valuations remain attractive; we reiterate BUY on HPCL and BPCL, and have an ADD rating on IOCL.

~ JM Financial Services

Bank Nifty was up 1% on Thursday nearing 34,906 points, helped by HDFC Bank, ICICI Bank, and Axis Bank. 

While Sensex and Nifty were soaring higher, midcap and smallcap indices were seen moving lower on Thursday. Nifty midcap 50 was down 0.26% while the smallcap 50 was 0.04% in red.

TCS, Infosys continue to dominate market momentum on Thursday as top Sensex gainers. 

Reliance Industrie share price cuts losses as AGM begins. Mukesh Ambani talks about RIL's journey through the pandemic. 

Reliance Industries share price continued to lag the market, falling 1.46% on Wednesday ahead of the AGM.

Fitch Ratings has upgraded Reliance Industries Ltd’s (RIL) rating to ‘BBB’, one notch above India’s sovereign rating, as the company benefits from cash flow generation across diversified business segments and continuation of deleveraging. In a statement, Fitch said it has upgraded RIL’s long-term foreign-currency issuer default rating (IDR) to ‘BBB’, from ‘BBB-‘, with a negative outlook. At the same time, the agency has affirmed RIL’s long-term local-currency IDR at ‘BBB ’ with a stable outlook.

India Pesticides Limited’s (IPL) overall IPO was subscribed by more than 1.64 times so far on day 2, receiving very good response from retail investors. Retail individual category was subscribed by more than 3.18 times. As of now Qualified Institutional and Non-Institution categories have not shown much of interest but we expect both the categories to receive good response at the end of the IPO on 3rd day. If we look at the grey market premium of IPL IPO, the same was volatile since the last 2-3 trading days and it is now trading at around premium of 20-30%. Fundamentals and valuations of the stock looks good and FY-2021 PE of 24.5x and EV/EBITDA of 18.2x at upper band of the IPO price, are slightly better than the peers companies. Similarly, company has one of the best ROE & ROCE of 34% and 45% respectively. Company has a healthy balance sheet with negative Net Debt to Equity. We expect the upcoming expansion plan and higher capacity utilisation will be the growth drivers for the company in future. We are assigning a “Subscribe” recommendation to the issue.

~Angel Broking Ltd

IT stocks were some of the top performers on Sensex today. Infosys and TCS were up 3% each, followed by HCL Technologies and Tech Mahindra.

"We expect current account deficit to have widened to 1.2% of GDP in QE Mar-21 from 0.2% of GDP in QE Dec-20. This is against the backdrop of a widening trade deficit as imports accelerated, led by normalization of economic activity. On the BoP front, we think well-funded financial account through strong FDI and FII flows is likely to help keep overall BoP in surplus, albeit lower than previous quarter levels," said Morgan Stanley economist Upasana Chachra.

Reliance Industries was the worst-performing stock on Sensex ahead of its Annual General Meeting. RIL share price slipped 1.21% to trade at Rs 2,178 per share.

NSE Nifty 50 reached fresh all-time highs earlier this month only to witness profit booking from the highs and push the index lower. Now after having seen a healthy correction, the NSE Nifty 50 may soon resume its northward march, and this time scale fresh highs near 16,400, said brokerage firm ICICI Direct. “We expect the Nifty to maintain its northbound journey and gradually head towards our earmarked target of 16200-16400 range, led by IT, BFSI, auto and infra,” analysts at ICICI Direct said in a note. Earlier this month, Nifty climbed to 15,901 -- an all-time high and has since witnessed a healthy correction. Now technical analysts say the index faces resistance near the 15,900 levels.

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Mumbai, June 24, 2021: Mindspace Business Parks REIT, one of India’s largest Grade A office portfolios, has joined the global RE100 initiative led by Climate Group in partnership with CDP. With this, it has committed to transform to 100% renewable electricity use across all areas serviced and maintained within the Mindspace Business Parks REIT portfolio, by the year 2050. Mindspace REIT will also make renewable energy accessible to tenants who choose to avail of the green power. The announcement further strengthens the entity’s commitment towards mitigating environmental impact across project lifecycles, in sync with the mission of RE100, which is to accelerate change towards zero-carbon grids at scale.

“We like Sona Comstar given its presence in fast-growing global EV market, diversified portfolio across categories and robust financials. Though the valuation at ~74x P/E appears fully priced in, given its thrust in fast-evolving EV space both in India and globally, market would like to give premium to such emerging growth story,' said Hemang Jani, Head Equity Strategist, Broking & Distribution, Motilal Oswal Financial Services. 

Nifty index opened positive but failed to even hold its opening levels and after a volatile swing it drifted towards 15673 levels. It has been finding sustained selling pressure near to its lifetime high of 15850-15900 zones from the last few trading sessions. It formed a Bearish Belt Hold sort of candle on daily scale and closed with losses of around 85 points. Now, it has to hold above 15700 zones to witness an up move towards 15800 and 15900 zones while on the downside support can be seen at 15600 and 15550 zones. Option Weekly Activity Expiry Express (E2) (A Comprehensive Weekly Expiry Note) Expiry day point of view:

Expiry day point of view : Overall trend is consolidative and need to hold above 15700 zones to witness an up move towards 15800 zones while on the downside support is seen at 15600 then 15550 zones. Buy nearby 15700 Call or Bull Call Ladder Spread

~ Motilal Oswal Financial Services

After making a muted market debut, shares of Sona Comstar surged 22% over the IPO price to trade at Rs 256.65 apiece. 

John McAfee, the creator of the eponymous antivirus software, was found dead Wednesday in prison outside Barcelona. He was 75. In recent years, McAfee became a prominent booster of cryptocurrencies, ran unsuccessfully for U.S. president, had numerous run-ins with the law and traded in extreme conspiracy theories. McAfee was discovered dead in his prison cell hours after Spain’s National Court approved his extradition to the U.S. over multiple tax fraud charges. Security personnel at the Brians 2 prison in northeast Spain tried but failed to revive him, the Associated Press reported, citing a statement from the region’s government.

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For a major part of the day (yesterday), the Bank Nifty remained under pressure due to selling in select private banks along with midcap banks. On the options front, significant OI was distributed from 34800 to 35200 Call strikes. On the other hand, an addition was seen in 34500 Put strike. It indicates the Bank Nifty may trade within a range of 34500 and 35000 on expiry day.

~ ICICI Direct

"Expiry is likely to be in the range of 15,700-15,750 zone with huge writing seen at 15,800 strike. Bank Nifty has a similar setup with built-up at 35,000 strike. Support at 34,500," said Rahul Sharma, Head Technical Research, JM Financial.

"The fundamental support to the highly valued markets comes from the ongoing economic recovery and the expected sharp rebound in earnings. US, China & parts of Europe are staging a smart economic rebound. In India even though unemployment is high and consequently aggregate demand is a concern, the organised sector is doing well supported by market share gain at the expense of the unorganised sector, lower corporate tax, cost-cutting and lower interest cost. Segments like IT, metals & pharma have favourable tailwinds. Since valuations are high investors should moderate their return expectations and extend their investment time horizon. Even in these highly valued markets, there are pockets of value in leading financials, pharma and top telecom stocks," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices fell in India on Thursday, on the back of rates in the international market where stronger dollar dented yellow metal’s appeal. On Multi Commodity Exchange, gold August futures were trading Rs 162 or 0.34 per cent lower at Rs 46,910 per gram, breaching the crucial Rs 47,000 levels on the downside. In the previous session, gold futures ended flat at Rs 47,072 per 10 gram.

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Shyam Metalics and Energy made a strong listing on the stock exchanges on Thursday amid positive market momentum. Shares of the debutant company began trading at Rs 380 per share on NSE, up Rs 76 or 24.18% from the issue price of Rs 306 apiece. Shyam Metalics and Energy had a market capitalization of Rs 9.69 crore on the listing. 

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Shares of Sona BLW Precision Forgings (Sona Comstar) made a muted listing debut on the stock exchanges today. The stock began trading at Rs 302 per share, up 2.92% or Rs 11.4 premium over the IPO price of Rs 291 per share. Sona Comstar entered the market earlier this month to raise Rs 5,550 crore through a mix of fresh issuance of equity shares and offer for sale by existing shareholders. The company is a diversified manufacturer of automotive components and systems with capabilities across drivetrain parts and motor electronics. On listing the stock had a market capitalization of more than Rs 17,000 crore. 

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India VIX was down 1% after having gained during the initial minutes of trade. Broader markets, except, Nifty Next 50 were in the green.

Ahead of its Annual General Meeting, Reliance Industries share price was trading flat. The stock opened with marginal gains but soon slipped. 

Sensex and Nifty began trading in the green on Thursday morning. Nifty crossed 15,700 once again while Sensex was up more than 150 points.

Sensex trimmed gains during the pre-open session but continued to trade in the positive territory. Nifty was above 15,700.

Sensex regained 52,600 during the pre-open session while the Nifty 50 index was above 15,700. 

BSE Sensex and Nifty 50 were likely to see a positive opening on Thursday, a day of weekly options expiry. Nifty futures surged higher in trade, rising 27.50 points or 0.18 per cent to 15,723 on Singaporean Exchange. F&O expiry, RIL AGM, along with COVID-19 vaccination pace, crude oil prices, rupee movement against US dollar and other global cues will set the tone for domestic markets today. Chartists believe that the short term trend of Nifty 50 is weak with range bound action. “The overall market breadth and broad market indices are showing resilience compared to benchmark Nifty. The present weakness is expected to be over in the next 1-2 sessions and the market could bounce up again from the lows. Immediate support is placed at 15600 levels,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said.

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'Equity market may remain volatile given FNO monthly expiry (Thursday). Investors would continue to track global Central Banks and RBI’s steps as the signs of rising inflation leads to fear of a sooner-than-expected tightening in global monetary policies especially post US Fed’s hawkish policy statement. However, good monsoon so far, gradual opening up of the economy and the pick-up in the pace of vaccination provides support to the market. Technically too, Nifty till it holds 15550 levels, it can witness an up-move towards 16,000. Reliance AGM would be key event to watch out for on Thursday,' said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

In an economy recovering from the first wave of coronavirus pandemic, supply-side snags eased during the January-March quarter while demand was still fragile. As India once again attempts to reboot the economy, the demand issues need to be addressed while policy-makers carve out plans, economists said. “Barring a severe third wave (which remains less likely), the pace of economic recovery would be more dependent on demand,” said Sujan Hajra, Chief Economist and Executive Director, Anand Rathi Shares & Stockbroker. The second wave curtailed the spending power of households as jobs losses accelerated to 15 million in May, according to CMIE. The unemployment rate shot up to 11.9% from 8% in April.

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On the daily chart, the Nifty continues to hold above a rising trend line that has held the important lows of the last few months. This implies that the index remains in an intermediate uptrend. The Nifty has also recently made higher bottoms at 14,591, 14,884 and 15,374 and continues to trade above the 20 and 50 day SMA, which gives further evidence of an uptrend.

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SGX Nifty was trading with gains on Thursday morning. With Nifty futures up in green, the market could open with some positive momentum.

Shyam Metlaics and Sona BLW Precision Forgings will make their stock market debut today. Both the IPOs were oversubscribed earlier this month.