SBI Card approves raising up to Rs 2,500 crore via NCDs
The Board of Directors of the Company, at its meeting approved raising offunds by way of issuance of Non-Convertible Debentures (NCDs) aggregating to Rs. 2,500 crore in one or more tranches, on private placement basis.
Ajit Mishra, VP - Research, Religare Broking
:
Markets traded lackluster and ended almost unchanged amid mixed cues. The start was muted on the back of weak global cues however recovery in metals and selective buying in financials pared all the losses. Consequently, the Nifty ended flat at 16,569.55 levels. On the sector front, a mixed trend was witnessed wherein realty, media and PSU banks were the top losers. The broader indices too witnessed a similar trend and traded mixed.
The prevailing uncertainty on the global front combined with caution ahead of the MPC meet outcome is keeping the participants on the edge. Indications are in the favour of further consolidation in the index so the focus should be on identifying the sectors/stocks and maintaining positions on both sides.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
:
Market has been exercising caution ahead of the credit policy announcement this week, and hence investors trimmed their position in rate-sensitive sectors such as realty. Technically, the Nifty found support near 16450 but failed to capitalise on it. The texture of the chart is indicating that a range bound activity is likely to continue in the near future. For day traders, 16500 would be the key support level to watch out, and above which the index could move up to 16650-16750. On the flip side, a fresh round of selling pressure is possible if the index trades below 16500. Any further decline could see the index retest the level of 16400-16350.
Rupak De, Senior Technical Analyst at LKP Securities
:
Nifty remained volatile during the session. On the lower end, bulls have protected the crucial support of 16400, which led to a rally towards 16600. The trend is likely to remain positive for the near term as long as 16400 is held on a sustained basis. On the higher end, resistance is seen at 16800.
Bank Nifty has remained below the 50-EMA throughout the session. The momentum oscillator is a bullish crossover. Going forward, Bank Nifty may remain sideward to positive as long as it holds the crucial support of 35000. On the higher end, resistance is visible at 36000.;
Mohit Nigam, Head - PMS, Hem Securities
Indian benchmark indices made a gap down opening and recovered in the noon session but were not able to sustain due to global cues and closed in red. Nifty50 closed at 16569.50 (+0.09%) and Sensex closed at 55675.32 (-0.17%).
On the technical front, the key resistance levels for Nifty50 are 16700 and on the downside 16400 can act as strong support. Key resistance and support levels for Bank Nifty are 35600 and 35000 respectively.
Deepak Jasani, Head of Retail Research, HDFC Securities
:
Nifty opened flat on June 6 and fell early to make an intra day low at 09:30 Hrs. It rose gradually to make an intra day high at 14:10 Hrs and later went sideways. At close, Nifty was down 0.13% or 21 points at 16563.3.
Volumes on the NSE were much below the recent average. Trading ahead of the RBI MPC meet outcome on June 08th, ECB meet on June 09 and US inflation data on June 10 remains subdued. Among sectors, Oil & Gas and Metals indices rose the most while Realty, Capital Goods and Consumer Durables indices fell the most. Smallcap index ended lower by 0.55% suggesting pressure on broader markets. This is also reflected in the negative Advance decline ratio for the day.
Nifty has consolidated on Monday after falling from higher levels on Friday. Having taken support from 16443, Nifty rose and closed higher than the low, though minorly in the negative. We think Nifty could remain in the 16353-16696 band for the next few sessions.
PSP Projects bags work order worth Rs 154.89 crore
PSP Projects is in receipt of new work orders worth Rs 154.89 crore in Institutional, residential and precast segment. We have emerged as Lowest Bidder for a Government Medical college and hospital in Gujarat with bid value worth Rs 615.18 crore, the company said in an exchange filing.
Rupee at close
Rupee ends at 77.63 per Us dollar against June 3 close of 77.62 per US dollar.
Market at Close: Benchmark indices ended in the red after a volatile session. Sensex was down 93.91 points or 0.17% at 55675.32, and the Nifty shed 18.50 points or 0.11% at 16565.80. Tata Steel, IndusInd Bank and Mahindra & Mahindra were the top gainers while Shree Cements, Asian Paints and BPCL were the top losers.
Among the sectors, selling was seen in realty and capital goods while the midcap and smallcap indices also ended in the red.
Power Mech Projects bags orders of Rs 521.95 crore
RBI clarifies on changes to existing currency notes
RBI has clarified that there is no proposal to make any changes to existing currency and bank notes. The clarification came after some reports in certain sections of the media that claimed the RBI is considering changes to the existing currency and banknotes by replacing the face of Mahatma Gandhi with that of others.
Market at 3.00 PM
Indices stuck in a range, Sensex trading lower by around 25 points, Nifty nearing 16,600
The Sensex was down 33.63 points or 0.06% at 55,735 and the Nifty was up 6.9 points or 0.04% at 16591.2. About 1299 shares have advanced, 1961 shares declined, and 180 shares are unchanged.
Source: BSE
Metals remain strong today, Nifty Metals Index up 0.91 percent.
Source: NSE
Tapan Patel, Senior Analyst (Commodities), HDFC Securities
:
Crude oil prices traded higher with benchmark NYMEX WTI crude oil rose by 0.48% to $119.42 per barrel. Crude oil prices rallied to the highest level in almost three months after Saudi Arabia signalled confidence in the demand outlook by increasing the price of its crude for Asia by more than expected. The tight supplies and higher demand may continue to support oil prices to trade up in near term. We expect crude oil prices to trade up with resistance at $123 per barrel with support at $115 per barrel. MCX Crude oil June contract has important support at Rs 9050 and resistance at Rs 9380 per barrel.
Market update at 2 PM: Sensex is up 51.51 points or 0.09% at 55820.74, and the Nifty added 23.70 points or 0.14% at 16608.
Tata Motors May auto sales
JLR UK sales down 40% at 4,737 units against 7,858 units (YoY). JLR UK sales down 16% at 4,737 units against 5,642 units (MoM).
Kolte Patil partners Tata Power to set up charging stations across its projects
Kolte-Patil Developers has partnered with Tata Power to set up charging stations across its projects in the cities of Pune, Mumbai and Bengaluru for providing comprehensive charging solutions to the EV owners. As part of wider green mobility adoption, EVs and the charging infrastructure play a key role to mitigate climate change challenges in the urban mobility space. Tata power wiih its expertise and proven track record to provide seamless EV charging facilities will offer best-inclass EV charging to residential customers of Kolte-Patil Developers, further easing their emobility journey, providing a uniform and ubiquitous EV charging experience, Kolte-Patil said in an exchange filing.
Market at 1.00 PM
Indices off day's highs, Sensex trading lower by around 60 points, Nifty around 16,550
The Sensex was down 74.37 points or 0.15% at 55,684.86 and the Nifty was down 22.35 points or 0.13% at 16561.95. About 1302 shares have advanced, 1960 shares declined, and 177 shares are unchanged.
Source: BSE
Nifty IT Index recovers from day's lows, but still down 0.45 percent
Source: NSE
Oil India jumped more than 5 percent in today's trade
Oil Indiajumped more than 5 percent in today's tradeafter brokerage firm Kotak Institutional Equities upgraded its rating on the stock to “add” and raised its fair value target to Rs 285. The stock was trading at Rs 263.7 after making an intra-day high of 266.8.The upgrade in the rating by the brokerage firm is driven by the change in its assumption of crude oil prices in the current and next financial year.
Thyrocare Technologies was quoting at Rs 678.60, up Rs 45.25, or 7.14 percent. It has touched an intraday high of Rs 691.00 and an intraday low of Rs 638
As per the advise of DGCA, SpiceJet restricted 90 pilots from operating MAX aircraft, until these pilots undergo re-training to the satisfaction of DGCA. This restriction does not impact the operations of MAX aircraft and the Company has adequate trained pilots available for its operations. Basis the observation of DGCA these 90 pilots shall undergo re-training. DGCA has imposed penalty of Rs 10 lakh basis its audit observations. The restriction doesn’t impact SpiceJet’s operations of Max aircraft and the airline has adequately trained pilots, according to the statement.
Market update at 1 PM: Sensex is down 240.27 points or 0.43% at 55528.96, and the Nifty shed 60.10 points or 0.36% at 16524.20.
Industry sources: Steel prices to soon come down due to lower raw material prices
:
NMDC iron ore prices fell 25%, coking coal price also fell in past 10 days. Government trying to rein in inflation by cooling domestic steel market. If coking coal, iron ore prices fall further, downside will be seen in domestic steel prices. Further fall in raw material price will lead to fall of Rs 3,000-5,000 per tonne in steel price, according to a CNBC-TV18 report.
Upasna Bhardwaj, Senior Economist at Kotak Mahindra Bank
Despite government’s supply side interventions to curb price pressures, the foreseeable inflation trajectory remains skewed closer to 7%. We expect the MPC to revise upward the inflation trajectory by 70-80bps accounting for the upside price pressures. The GDP estimates may remain unchanged for now. From the policy withdrawal perspective, RBI in the last two months has moved quite aggressively and swiftly. The weighted average overnight rates have risen by 80-90bps since the April MPC policy. The recent countercyclical government measures has clearly provided room for the MPC to avoid disruptive tightening. We expect a repo rate hike of 35-40bps and status quo on CRR in the upcoming June policy.
L&T bags order worth Rs 2,500 - 5,000 crore for its water & effluent treatment business
Market update at 11 AM: Sensex is down 257.97 points or 0.46% at 55511.26, and the Nifty shed 74.30 points or 0.45% at 16510.
TVS Motor to raise Rs 5,000 crore for expanding new electric mobility arm
TVS Motor Company is in advanced talks to raise Rs 4,000-5,000 crore from private equity firms to fund expansion of the group’s new electric mobility arm, Mint reported. The two-wheeler firm aims to build a "sustained dominant play" in the electric vehicle (EV) segment by leveraging various government initiatives such as production-linked incentive (PLI) scheme and others.
As per its annual report for 2021-22, the company has robust plans to scale up its play in the electric segment. TVS seeks to increase the share of revenues from its EV business, capitalising on the increasing demand for EVs globally.
PVR, Inox Leisure shares fall on rising COVID-19 cases in Maharashtra
Just as investors and analysts were rejoicing the return of moviegoers in large numbers to multiplexes, the recent surge in COVID-19 cases has dimmed their enthusiasm once again. Shares of PVR and Inox Leisure fell 2.5 percent and 3.3 percent, respectively, on the National Stock Exchange as the Maharashtra government made mask in public places mandatory again in light of rising cases.
The state has seen a 54 percent rise in reported COVID-19 cases in the previous 24 hours with 700 of the new 1,018 infections arising in Mumbai itself. The resurgence in COVID-19 infections has investors worried that footfalls in theatres could see a sharp fall as individuals avoid crowded places from fear of the virus.
Buzzing stock
The share price of Oil India rose on June 6 after brokerage firm Kotak Institutional Equities upgraded the stock to “add” and raised its fair value target to Rs 285, implying an upside of 13.5 percent from June 3 close.
The upgrade in the rating is driven by the change in the brokerage firm’s assumption of crude oil prices in the current and next financial year. Kotak Equities has raised its 2022-23 target for average Brent crude to $105 a barrel from $90. It has also raised its forecast for 2023-24 to $90 a barrel from $70. The brokerage firm also expects domestic natural gas prices to average $8.9 per mmBtu in 2022-23 as against $2.6 per mmBtu in 2021-22, given the sharp jump in global prices triggered by massive supply shortages.
Westlife Development appoints Akshay Jatia as Executive Director
Market update at 10 AM: Sensex is down 203.24 points or 0.36% at 55565.99, and the Nifty shed 58.30 points or 0.35% at 16526.
India's 10 year bond yield at more than 3-year high tracking global crude
India's benchmark 10-year bond yield rose to its highest levels since March 2019 in early trade on Monday as investors prepared for around a 50-basis-point rate increase later this week while higher global crude oil prices also hurt sentiment.
India's benchmark 10-year bond yield was trading at 7.4965%, up 4 basis points from its previous close. Yield rose as high as 7.5004%, its highest since March 22, 2019.
Market at Open: Sensex is down 146.45 points or 0.26% at 55622.78, and the Nifty shed 28 points or 0.17% at 16556.30.
Deepak Jasani, Head of Retail Research, HDFC Securities
Indian markets could open mildly lower in line with mixed Asian markets today and lower US markets on Friday. US stocks fell sharply Friday, leaving major indexes with weekly losses, after better-than-expected May payrolls data reinforced expectations for a series of interest-rate rises by the Federal Reserve in coming months. For the week, the S&P 500 fell 1.2% while the Nasdaq declined 0.98% and the Dow lost 0.94% after all three indexes had risen sharply the week before.
Nifty gave up the early gains on June 3 and ended in the negative after a day of gains. At close Nifty was down 0.26% or 43.7 points at 16584.3. FPIs seem to have resumed selling activity in Indian markets. After a weekly gain of 1.4%, Nifty has formed a Dark cloud cover formation on daily charts. 16794 on the Nifty will have to be breached for further upmoves to happen. On downmoves 16443 is an important support.
RBI Monetary Policy | Experts predict another rate hike as inflation continues to rise
With inflation showing no signs of abatement, the Reserve Bank is likely to increase the benchmark lending rate in quick succession in its forthcoming monetary policy review on Wednesday, a hint for which has already been given by Governor Shaktikanta Das, opined experts.
There are speculations that the central bank may go for at least 35 basis points (bps) hike over and above the 40 bps hike effected last month after an off-cycle Monetary Policy Committee (MPC) meeting. Experts are expecting more hikes in repo rate in the coming months.
China May services activity contracts for third straight month - Caixin
:
China's services activity contracted for a third straight month in May, pointing to a slow recovery ahead despite the easing of some COVID lockdowns in Shanghai and neighbouring cities, a private business survey showed on Monday. The Caixin services purchasing managers' index (PMI) rose to 41.4 in May from 36.2 in April, edging up slightly as authorities began to roll back some of the strict restrictions that have paralysed the financial city of Shanghai and roiled global supply chains.
Centre approves sugar export applications of 62 mills totaling 10 Lakh MT
: Soon after the Union government restricted sugar exports to 100 lakh metric tonnes, on June 5 it approved the export of 62 sugar mills and exporters for a quantity of 10 lakh metric tonnes.
"Directorate of Sugar and Vegetable Oils, Department of Food and Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution, in exercise of powers conferred by Section 3 of the Essential Commodities Act, 1955 (10 of 1955) read with clause 4 and 5 of the Sugar (Control) Order, 1966, grant permission to exporters to export a total quantity of 10 LMT of sugar within 90 days from the date of this order," according to a notification dated June 5.
US unemployment news
American employers added 390,000 jobs last month, the government reported Friday, a sign of a slowdown in hiring but still a better-than-expected result amid a shortage of workers. The jobless rate held steady at 3.6 percent for the third consecutive month, just a tenth of a point above the pre-pandemic level in February 2020, the Labor Department said.
The labor force participation rate edged up very slightly to 62.3 percent, a sign more workers could be coming off the sidelines to rejoin the labor force, which would ease pressure on wages.
Stocks to Watch Today | Vedanta, V-Guard Industries, Adani Transmission and others in news today
Asian Markets Updates
Oil prices
Oil prices rose more than $2 in early trade on Monday after Saudi Arabia raised prices sharply for its crude sales in July, an indicator of how tight supply is even after OPEC+ agreed to accelerate its output increases over the next two months.
Brent crude futures were up $1.80, or 1.5%, at $121.52 a barrel at 2319 GMT after touching an intraday high of $121.95, extending a 1.8% gain from Friday. US West Texas Intermediate (WTI) crude futures were up $1.63, or 1.4%, at $120.50 a barrel after hitting a three-month high of $120.99. The contract gained 1.7% on Friday.
SGX Nifty
Trends on SGX Nifty indicates a negative opening for the broader index in India with a loss of 84 points. The Nifty futures were trading around 16,505 levels on the Singaporean exchange.
