Closing Bell: Sensex, Nifty end higher led by IT stocks; mid & smallcaps underperform

Mazhar Mohammad, Founder & Chief Market Strategist at Chartviewindia:

It appears to be the day of consolidation on the bourses as Nifty surprisingly remained steady without any volatility on expiry sesion within the trading range of a bearish candle registered in last Wednesday’s session which resulted in Inside Bar kind of formation. However, despite this positive move advance decline ratio clearly favored bears hinting at wide spread profit booking in broader markets. Hence, it remains critical for the index to sustain above 15673 levels to continue sideways consolidation with positive bias though strength in the index shall not be expected unless it closes above 15862 levels but sustainable upmove is possible only if Nifty closes above 15900 levels.

In case if it slips below 15670 then bears can start dominating by eventually pushing the index towards lower end of the broader trading range present in the zone of 15900 – 450 levels. Therefore considering sideways nature traders are advised to remain neutral on long side but intraday shorting opportunity arises below 15670 for a modest target of 15550 levels.

Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services

: Nifty opened positive and moved upwards since its opening tick as Bulls were seen active in the index with the support at 15700 levels. It moved in a consolidative manner in the second half and closed near 15800 with gains of around 100 points.

Since it is beginning of new series, option data is scattered at different strikes. On option front, Maximum Put OI is at 15500 followed by 15000 strike while maximum Call OI is at 16000 followed by 16500 strike. Call writing is seen at 16000 and 16500 strike while Put writing is seen at 15000 then 15500 strike. Option data suggests a wider trading range in between 15400 to 16200 zones while an immediate range in between 15600 to 16000 zones.

Bank Nifty opened positive and headed towards its previous day’s high of 34935 levels. Selective banking stocks kept the Bank Nifty in strength and it closed with gains of around 250 points. It formed a Bullish candle and an Inside bar on daily scale. Now it has to hold above 34750 zones to move up towards 35000 and 35250 zones while on the downside support exists at 34500 and 34250 levels.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:

Nifty has gone sideways; the range is between 15400 and 15900. Unless we do not get past either level, we will not see a significant move. While the bias is on the upside and there is still room for the index to conquer 16100, a buy on dips approach is recommended.

Market at close:

Sensex ended up 392.92 points or 0.75% at 52699.00, and the Nifty jumped 103.50 points or 0.66% at 15790.50. IT stocks rallied led by TCS, Infosys and Tech Mahindra. On the other hand, Reliance Industries, Coal India and Indian Oil Corporation are the top losers. About 1415 shares have advanced, 1717 shares declined, and 135 shares are unchanged.

Among the sectors, Nifty IT jumped over 2 percent followed by metals and banks. Pharma and energy stocks dragged the most.

Ashis Biswas, Head of Technical Research at CapitalVia Global Research:

The market witnessed some lackluster movement and an attempt to hold the support level around the Nifty 50 Index level of 15800. The market suggests, trading above 15800 is positive from a short-term perspective. Sustaining above 15800 levels, the market expects to gain momentum, leading to an upside projection till 16100-16200 level. The market observed the momentum indicators like RSI, MACD to further strengthen in favor of a positive outlook.

RIL shares trade lower

: Shares of Reliance Industries (RIL) traded about a percent lower while the company’s 44th annual general meeting (AGM) was underway. In the last ten years, shares of RIL saw mixed trends on the day of the company’s AGM, reacting to the company’s announcements, falling on six occasions, while rising on the rest of AGM days.

RIL looking forward to welcome Saudi Aramco as a strategic partner in O2C business

Sugandha Sachdeva, Vice President - Commodity and Currency Research, Religare Broking

: Gold prices have been hit hard last week, as the US Fed in its latest meeting has surprised the markets with its hawkish shift and projected rate increases as soon as 2023, which buoyed the dollar index and led to the steep decline of around six percent in the precious metal. However, the Fed chair in his recent testimony has calmed the markets' nerves by his dovish sentiment that could underpin gold prices going forward. Fed Chair - Jerome Powell has maintained that the Fed would retain loose monetary policy until the recovery is complete, but did talk about removing some of the emergency support in coming months.

Gold looks primed for a rebound which can extend towards Rs 47500 per 10 grams and then eventually Rs 48100 per 10 grams in the coming days. On the flip side, any convincing breach of the Rs 46500 per 10 gram support would lead to a further downdraft towards Rs 45700-45300 per 10 grams area.

European markets are trading in the green with DAX and CAC up half a percent each

Just in: CMD Mukesh Ambani addresses investors and stakeholders at its 44th AGM.

Nureca shares locked in 5% upper circuit:

Shares of Nureca were locked in a 5 percent upper circuit of Rs 1,627.50 on BSE after Hornbill Orchid India Fund acquired a stake in the company. Hornbill Orchid India Fund, a Mauritius-based hedge fund, acquired a 1.95 percent equity stake in Nureca, a home healthcare and wellness products seller, on June 23. Hornbill Orchid India Fund bought 1,95,766 equity shares in Nureca at Rs 1,549.97 per share on the BSE, the bulk deals data showed.

Market update

: Sensex is up 420.36 points or 0.80% at 52726.44, and the Nifty jumped 108.50 points or 0.69% at 15795.50. TCS, Infosys and Tech Mahindra are the top gainers while Reliance Industries and Adani Ports are the most active stocks.

Among the sectors, the IT index jumped over 2 percent while Bank Nifty and metal index are up 1 percent each.

Sona Comstar freezes at 20% upper circuit, Shyam Metalics spikes 30% on day 1

Sona BLW Precision Forgings (Sona Comstar), and Shyam Metalics & Energy had a diverse listing on June 24 as the former started off day on a tepid note, and the later opened strong.

But later both remained strong in trade. Sona Comstar was frozen in 20 percent upper circuit at Rs 362.85 in afternoon while Shyam Metalics gained as much as 30 percent, trading 24.22 percent higher at Rs 380.10.

Experts advised holding both stocks for longer term, as favourable metal cycle, and rising demand growth from long steel and ferro alloys support Shyam Metalics, while fast growing global electric vehicle (EV) market, diversified portfolio across categories and robust financials favour Sona Comstar.

Market update

: Sensex is up 353.44 points or 0.68% at 52659.52, and the Nifty added 91.50 points or 0.58% at 15778.50. Infosys, TCS and JSW Steel are the top gainers while Reliance Industries, Adani Ports and IOC are the top losers.

Among the sectors, the IT index jumped over 2 percent while pharma and PSU banks are under pressure.

India Pesticides' Rs 800-crore IPO subscribed 1.96 times on second day of bidding

Lucknow-based agrochemical company India Pesticides' initial public offering has seen a subscription of 1.96 times on June 24, the second day of bidding. This is the last issue in the month of June. Investors have put in bids for 3.78 crore equity shares against the offer size of 1.93 crore equity shares, the subscription data available on the exchanges showed.

Orchid Pharma shares crack 10%

Shares of Orchid Pharma cracked 10 percent and were locked in their 10 percent lower circuit of Rs 1,187.85 after one of its promoters said it would sell its stake in the company. Dhanuka Laboratories will sell 8.04 percent of the total share of the company on June 24 and June 25 via an offer for sale.

CBI conducts searches at CG House:

The Central Bureau of Investigation (CBI) is conducting searches at the CG House in Mumbai, among six locations, in businessman Gautam Thapar's loan default case. In August 2019, CG Power and Industrial Solutions had sacked Thapar as its chairman with immediate effect after an investigation unearthed an alleged multi-crore financial scam in the firm. Thapar, however, denied allegations that he misappropriated funds of the power equipment maker, which is part of Avantha Group. Read more

Market update

: Sensex is up 333.22 points or 0.64% at 52639.30, and the Nifty added 86.80 points or 0.55% at 15773.80. TCS, Infosys and Larsen & Toubro are the top gainers while Reliance Industries, Sona BLW and Adani Ports are the most active stocks.

Among the sectors, IT and metals added over a percent each while pharma is under pressure.

Buzzing Stock

Shares of large-cap banking player IndusInd Bank has been rising in sync with the benchmark Nifty this year so far and brokerages believe the stock can continue to rise in the coming months too. Year-to-date (YTD), shares of IndusInd Bank are up 12 percent while the benchmark Nifty, too, is up 12 percent. Nifty Bank is up 11 percent YTD.

Brokerage firm Emkay Global has retained a buy call on the stock and raised the target price to Rs 1,375 (from Rs 1,175), which is a 38 percent upside from the current market price of the stock at Rs 999.70 on NSE.

S&P Global Ratings cuts India's FY22 growth forecast to 9.5%

S&P Global Ratings on Thursday cut India's growth forecast for the current fiscal to 9.5 percent, from 11 percent earlier, and warned of risk to the outlook from further waves of COVID pandemic.

The agency lowered the growth outlook saying that a severe second COVID-19 outbreak in April and May led to lockdowns imposed by states and sharp contraction in economic activity. “We forecast growth of 9.5 percent this fiscal year from our March forecast of 11 percent,” S&P said.

Nifty IT added over a percent led by TCS and Infosys

Hemang Jani, Head Equity Strategist, Broking & Distribution, Motilal Oswal Financial Services

: Two companies listed on the exchanges today with diverse listing– one saw stellar opening while another witnessed a lacklustre opening. Shyam Metalics listed with 24.2% premium against its issue price of Rs 306 per share. On the other hand, Sona Comstar listed with just 3.9% premium against its issue price of Rs 291 per share.

Sona Comstar, despite being in a niche space of EV components, saw a little tepid listing premium due to its large issue size of Rs 5550 crore. On the other hand, Shyam Metalics witnessed good listing premium given its presence in the metal space which is in an upcycle and that too in the value added steel products. Both the companies are present in niche space and have good business fundamentals and financials.

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.

Zydus Cadila gets tentative US FDA nod for Fingolimod capsules

Zydus Cadila received tentative approval from the USFDA to market Fingolimod Capsules in the strength of .25 mg. The drug will be manufactured at the group’s formulation manufacturing facility at the SEZ, Ahmedabad. The group now has 319 approvals and has so far filed over 400 ANDAs since the commencement of the filing

Sensex gainers and losers

Gaurav Garg, Head of Research, CapitalVia Global Research

In the upcoming AGM, Reliance Industries (RIL) is likely to announcekickstarting 5G services which might begin in late 2021.

Moreover, 5G phones are likely to be revealed in the AGM which might be another interesting development to watch out for.

An announcement over dividend declaration and bonus might also come in this AGM as it is long expected from the last few AGMs and since RIL likes to keep the market price of shares around 1,000 so we might get to see a 1:1 bonus announcement.

JioBook is another attraction which might lure investors' attraction as low-cost laptops. Specific announcements are expected on the progress of Saudi Aramco deal in O2C business as well as Future Retail merger in the retail space.

Market update

: Sensex is up 293.39 points or 0.56% at 52599.47, and the Nifty added 71.40 points or 0.46% at 15758.40. Infosys, Larsen & Toubro and TCS are the top gainers, adding 2 percent each while Reliance Industries, Adani Ports and Bharat Electronics are the most active stocks.

Among the sectors, the pharma index is trading in the red while the midcap and smallcap indices are also under pressure.

Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments

: Nifty has resistance around 15,900 and it is having trouble getting past that. If we manage to get conquer this level, we should be headed to 16,100. Good support lies at 15,400 and as long as that holds on a closing basis, we are in bullish territory and traders should utilize drops or corrections to add long positions to their trading portfolios.

Buzzing Stock

Apollo Hospitals Enterprises share price was trading 2 percent lower after the company reported a fall in consolidated net profit at Rs 169.89 crore for the fourth quarter ended March 31, 2021. The company had posted a consolidated net profit of Rs 209.60 crore in the corresponding quarter of the previous fiscal.

Motilal Oswal on Bharat Electronics

At the CMP, the stock trades at 17x/16x FY22E/FY23E P/E, despite having an RoE/RoCE of ~19%/20%, dividend yield of ~3%, and FCF yield of 2-4%. We maintain buy. Higher growth in the non-defense business poses an upside risk to our EPS estimates, while working capital deterioration poses a key downside risk to valuations.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:

The fundamental support to the highly valued markets comes from the ongoing economic recovery and the expected sharp rebound in earnings. US, China and 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 and 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.

Market update

: Sensex is up 196.13 points or 0.37% at 52502.21, and the Nifty added 47.20 points or 0.30% at 15734.20. Larsen & Toubro, Infosys and TCS are the top gainers while Shyam Metalics, Adani Ports and Reliance Industries are the most active stocks.

Among the sectors, IT, metals and banks are trading in the green while energy stocks are under pressure.

Shyam Metalics lists at Rs 380, a 24% premium over IPO price

Integrated metal producing company Shyam Metalics and Energy share listed at a 24 percent premium, which was lower than what analysts expected, on June 24. The stock opened at Rs 380 on the National Stock Exchange against an issue price of Rs 306, while the listing price on the BSE was Rs 367, a 20 percent premium.

The listing was lower than analysts' expectations and was also lower than the grey market premium, which could be due to the volatility in the secondary market. Analysts had expected it to list with around 40 percent premium.

Rupee opens

: Rupee opens at 74.22 per US dollar against June 23 close of 74.27 per US dollar

Good Listing | Shyam Metalics lists at Rs 380, a 24% premium over IPO price

Integrated metal producing company Shyam Metalics and Energy share listed with a 24 percent premium on June 24, the first day of trade. The stock opened at Rs 380 on the National Stock Exchange, against issue price of Rs 306, while the listing price on the BSE was Rs 367, a 20 percent premium over IPO price.

The listing was lower than analysts' expectations and was also lower than the grey market premium, which could be due to volatility in the secondary market. Analysts had expected it to list with around 40 percent premium.

Kumar Bhansali, Head of Treasury - Finrex Treasury Advisors

: Dollar-Rupee is moving in a range of 74.00 to 74.50 with flows on upside bringing it down but buyers like oil companies are taking it up and not allowing a fall below 74. The strength in the dollar after a hawkish FED is imminent despite the damage control by Powell in his testimony.

Exporters may sell near 74.40 for the day while importers may buy near to 74.05 in a range of 74.00 to 74.50. Equities have also not been able to consolidate the gains of the last one year and are unable to rise beyond a certain level.

Reliance AGM 2021 LIVE Updates | Reliance Industries CMD Mukesh Ambani addresses 44th AGM 

ONGC Q4 profit likely to see significant growth, realisation to be strong

Oil and Natural Gas Corporation (ONGC) is expected to report around 80 percent sequential growth in profit for the quarter ended March 2021 with a strong realisation on higher crude oil prices.

"We expect 18.2 percent sequential increase in earnings before interest, tax, depreciation and amortisation (EBITDA) led by higher crude realisation at $59 per barrel (up $16 per barrel QoQ), and higher price of value-added products, which will be partly offset by an increase in other expenses; gas price was steady QoQ," said Kotak Institutional Equities, which sees an 80.8 percent QoQ growth in profit, and 23 percent rise in revenue.

Market at open: Sensex is up 152.78 points or 0.29% at 52458.86, and the Nifty added 38.20 points or 0.24% at 15725.20.

ICICIdirect on market:

Indian markets are likely to open gap up on the back of mixed global cues as Coronavirus cases continue to fall in India raising prospect of a swifter normalisation of economy. Domestic markets ended lower tracking losses mainly in metals, IT and BFSI stocks.

Investors meeting schedule

Oil climbs as draw in US crude stocks boosts optimism about demand

Oil prices climbed on June 24 after a sharp drawdown in United States crude and gasoline stocks reinforced optimism of a quick recovery in fuel demand and on doubts about the future of the 2015 Iran nuclear deal that could end U.S. sanctions on Iranian crude exports. Brent crude futures rose 9 cents, or 0.1%, to $75.28 a barrel by 0103 GMT, after increasing 0.5% on Wednesday.

Hornbill Orchid India picks up 2% stake in Nureca, Heineken buys 14.99% stake in United Breweries

Hornbill Orchid India Fund, a Mauritius-based hedge fund, acquired 1.95 percent equity stake in Nureca, a home healthcare and wellness products seller, on June 23. Hornbill Orchid India Fund bought 1,95,766 equity shares in Nureca at Rs 1,549.97 per share on the BSE, the bulk deals data showed.

Heineken International B V acquired 3,96,44,346 equity shares in Vijay Mallya-owned United Breweries (or 14.99 percent of total paid up equity) at Rs 1,471.25 per share. Recovery Officer I DRT II (Debt Recovery Tribunal) was the seller for same shares in a deal on the BSE. The transaction was worth Rs 5,832.67 crore.

Cryptocurrency Prices Today: Bitcoin, Ethereum tumble; Dogecoin in green

Cryptocurrency prices of most of the coins continue to be in the red on June 24. The global cryptocurrency market cap is $1.32 trillion, a 1.9 percent decrease over the last day, while the total crypto market volume over the last 24 hours is $93.69 billion, which makes a 37.09 percent decrease.

The volume of all stable coins is now $74.89 billion – 79.93 percent of the total crypto market 24-hour volume. Bitcoin's price is currently $35,325.09 and its dominance is currently 46.62 percent, a decrease of 0.71 percent over the day. Read more

Check out the latest on novel coronavirus, its looming third wave and vaccine administration

Company earnings today

: Oil and Natural Gas Corporation, Ashok Leyland, Allied Computers International, Bodal Chemicals, CL Educate, Deep Industries, Everest Kanto Cylinder, Essar Shipping, Future Supply Chain Solutions, Mishra Dhatu Nigam, Mudra Financial Services, PTC India, South India Paper Mills, Sundaram Multi Pap, Take Solutions, Thangamayil Jewellery, and West Coast Paper Mills.

Buzzing Stocks: RIL, ONGC, Orchid Pharma And Other Stocks In News Today