Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS:
After opening the session on a positive note, Indian markets pared all the opening gains and came under strong selling pressure. The sell-off was seen across sectors, with metal stocks being one of the worst hit. Hints from the Federal Reserve that it could hike interest rates from 2023 have put world markets and commodities under stress, while the dollar has strengthened sharply. With global risk sentiment deteriorating, further selling in the short-term cannot be ruled out as markets price-in the Fed's surprising shift in policy stance.
Nifty briefly broke the 20-day moving average of 15596 today, but has recovered off lows. The index has not closed below the 20-DMA for well over a month. Hence, this is the immediate support to watch out for. A closing below the 20-DMA could lead to a short-term correction towards 15200-15100 in the days ahead.
Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services:
The USDINR spot is at an inflection point, though optimism over Fed rate hikes is keeping the USDINR afloat, the price activity suggest that revaluation of positioning is currently taking place. Today’s weekly closing will be important for more clear direction for USDINR in coming days.
Sustenance above 74.25 will open doors for 74.50-74.65. If it gives weekly closing near or below 74.0 today then we can see the pair to witness a dip towards 73.90-73.65 and consistent trading below 73.65 will lead the pair towards 73.50/73.45.
Rupee Close:
Indian rupee erased intraday losses and ended 22 paise higher at 73.86 per dollar, amid volatile trade saw in the domestic equity market.
It opened flat at 74.10 per dollar against previous close of 74.08 and traded in the range of 73.82-74.27.
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 15600. The market expects 15600 will act as a support and the technical factors seems aligned to support a sideways correction. Further, it is likely to continue for a few more trading sessions before the market resumes its upside momentum again.
Market Updates
: Benchmark indices erased all the intraday losses and ended near the day's high level in the highly volatile session.
The Sensex was up 21.12 points or 0.04% at 52344.45, and the Nifty was down 8.00 points or 0.05% at 15683.40. About 1182 shares have advanced, 1964 shares declined, and 126 shares are unchanged.
ONGC, Coal India, NTPC, UPL and JSW Steel were among major losers on the Nifty, while top gainers included Adani Ports, HUL,
Bajaj Auto, Bharti Airtel and Grasim Industries.
On the sectoral front, except FMCG, all other indices ended in the red with energy and PSU bank indices shed 1-2 percent.
Crude Updates:
Oil prices fell for a second straight session on Friday as the U.S. dollar soared on the prospect of interest rate hikes in the United States, but they were on track to finish the week little changed and only slightly off multi-year highs.
SREI Infrastructure shares locked at 10% upper circuit
SREI Infrastructure Finance share price touched a 52-week high of Rs 14.49 and locked at 10 percent upper circuit on June 18 after company's material wholly owned subsidiary Srei Equipment Finance received a term sheet from Makara Capital Partners Pte. Ltd., Singapore indicating interest for investment of an aggregate amount of Rs 2,200 crore by way of subscription to equity shares and other securities of the company subject to the terms and conditions contained in the said term sheet.
The strategic coordination committee, chaired by an independent director, will evaluate the said offer and make the recommendation to the board of the company, comapny said in the release.
Asian shares slip, deepen weekly loss after hawkish Fed
Asian shares extended losses for the week, U.S. Treasury yields climbed and the greenback hovered near two-month highs on Friday as investors digested comments from the U.S. Federal Reserve projecting rate hikes in 2023.
Market at 3 PM
Benchmark indices erases most of the intraday losses but still trading lower with Nifty above 15600.
At 15:01 IST, the Sensex was down 158.26 points or 0.30% at 52165.07, and the Nifty was down 51.70 points or 0.33% at 15639.70. About 929 shares have advanced, 2018 shares declined, and 111 shares are unchanged.
ONGC, Coal India, Power Grid Corp, JSW Steel and UPL were among major losers on the Nifty, while top gainers included Adani Ports, HUL, Bajaj Auto, Bajaj Finserv and HDFC Life.
Rupee Updates:
Indian rupee erased intraday losses and tradinghigherat 73.08per dollar, amidvolatile tradeseen in the domestic equity market.It opened flat at 74.10 per dollar against previous close of 74.08.
Paytm IPO: One97 calls for EGM on July 12 to approve fund-raising plan
One97 Communications which owns and operates online payments firm Paytm has called an extraordinary general meeting (EGM) on July 12 to seek approval to raise Rs 12,000 crore through fresh issue of shares during its initial public offering (IPO).
The company will also decide if founder and chief executive Vijay Shekhar Sharma can be declassified as the promoter.
Besides deciding on the total number of equity shares that need to be reserved for allocation to eligible categories of investors, amendments to the Employees Stock Options Scheme is also on the cards
Tapan Patel- Senior Analyst (Commodities), HDFC Securities
: Crude oil prices traded weak with benchmark NYMEX WTI crude oil prices were trading 0.46% down at $70.71 per barrel for the day. MCX Crude oil June futures were down by 0.27% at Rs 5228 by noon.
Crude oil prices are expected to trade sideways to down for the day with resistance at $72 and support at $69.50 per barrel. MCX Crude oil June has support at Rs 5180 and resistance at Rs 5280.
European markets are trading weak with FTSE down half a percent
Eveready Industries Q4
Consolidated net loss at Rs 442.5 crore against profit of Rs 63.1 crore (YoY). Consolidated revenue was up 21.7 percent at Rs 272.6 crore against Rs 224.1 crore (YoY). Consolidated EBITDA jumped 44.4 percent at Rs 41 crore against Rs 28.4 crore (YoY). Consolidated EBITDA margin at 15 percent against 12.7 percent (YoY).
PSP Projects Q4:
Consolidated net profit was up 22.4% at Rs 41.7 crore against Rs 34.1 crore (YoY). Consolidated revenue gained 9.7% at Rs 500.7 crore against Rs 456.4 crore (YoY). Consolidated EBITDA rose 23.7% at Rs 63 crore against Rs 50.9 crore (YoY). Consolidated EBITDA margin at 12.6% against 11.2% (YoY).
Market update
: Sensex is down 158.45 points or 0.30% at 52164.88, and the Nifty shed 54.30 points or 0.35% at 15637.10. Hindustan Unilever, Adani Ports and Bajaj Auto are the top gainers while SBI Cards, Adani Ports and Adani Enterprises are the most active stocks.
Among the sectors, FMCG and pharma are trading in the green while the midcap and smallcap indices have recovered some lost grounds and are trading lower by a percent each.
Motilal Oswal recommends buy on HUL with 15% upside
Hindustan Unilever share price added over 2 percent and was the top index gainer. The stock has underperformed its peers since the last 1 year, gaining 18 percent in comparison to Marico which gained 57 percent, Dabur India (30 percent) and Godrej Consumer adding 38 percent in the same period. According to the brokerage firm, while Q1 FY22 will be impacted by the second COVID wave, the extent will be far lower compared to last year. Rural continues to remain resilient, and demand in health, hygiene, and nutrition categories remains healthy, it said.
Read moreDodla Dairy IPO subscribed 16 times, QIB portion booked 9 times:
The public issue of Dodla Dairy has seen a subscription of 15.91 times as the offer received bids for 13.53 crore equity shares against IPO size of 85.07 lakh equity shares on June 18, the final day of bidding.
The qualified institutional buyers have put in bids for 9.25 times of their reserved portion and that of non-institutional investors 41.85 times so far. Click to Read More
BSE Power index fell 1 percent dragged by the Adani Transmission, Adani Power, Adani Green, BHEL
KIMS Hospitals IPO issue fully subscribed on final day
The initial public offering (IPO) of Krishna Institute of Medical Sciences (KIMS Hospitals) had seen a subscription of 1.12 times by the afternoon of June 18, the last day of bidding.
The offer has received bids for 1.61 crore shares against the IPO size of 1.44 crore shares, the subscription data on exchanges showed. The company is selling in a price band of Rs 815-825 a share.
Gaurav Garg, Head of Research, CapitalVia Global Research:
In early sessions, Indian equities indexes lost over a percent due to selling in front-line counters. Lockdowns implemented by states in April and May to prevent the second wave of the fatal COVID-19 epidemic are likely to have caused the economy to drop by 12% in the June quarter, compared to a 23.9 percent contraction in the previous quarter, according to a private analysis.
Traders also noted the Reserve Bank's assessment, which stated that the disastrous second wave of the coronavirus epidemic in April-May cost the country Rs 2 lakh crore in terms of output.
The market opened with a small gain but soon lost all the gains and breached the important support level of 15650 which led the market to slip further and took support near the level of 15480-15500. Technical factors indicate that if the market closes below the level of 15650 we can witness a sideways movement in the following trading days.
Motilal Oswal on Shriram Transport Finance
Since the IL&FS crisis, Shriram Transport Finance has diversified into new borrowing sources, such as retail NCDs as well as ECBs, and increased reliance on deposits. The share of ECBs in the borrowing mix has increased meaningfully to 21% (from 13% five quarters ago).
Shriram Transport Finance has also increased liquidity to 16% of borrowings. AUM growth has been weak for the past several quarters; however, signs of a sharp reversal are seen in its core segment of Used Vehicle Financing,
With the sharp rise in input costs, prices of new CVs are likely to go up and should have a consequent impact on used CV pricing as well. This should aid disbursement growth as well as lead to lower LGDs. We have incorporated the recent capital raise in our estimates. Reiterate Buy, with Target Price of Rs 1,750
Market at 1 PM
Benchmark indices erased some of the intraday losses but still trading lower with Nifty around 15600
The Sensex was down 320.65 points or 0.61% at 52002.68, and the Nifty was down 107.40 points or 0.68% at 15584.About 706 shares have advanced, 2191 shares declined, and 92 shares are unchanged.
Fertilisers
and Chemicals Travancore (FACT) Q4 earnings:Fertilisers and Chemicals Travancore (FACT) has reported consolidated Q4 net profit at Rs 149.7 crore versus Rs 66.5 crore and revenue was up 15.9% a Rs 821.2 crore against Rs 708.5 crore (YoY).
Fertilisers and Chemicals Travancore was quoting at Rs 139.15, down Rs 4.35, or 3.03 percent on the BSE.
BSE Oil & Gas index slipped over 1 percent dragged by the HPCL, ONGC, Gail India, Castrol India
Rupee Updates:
Indian rupee is trading marginally lower at 74.15 per dollar, amid selling seen in the domestic equity market.
It opened flat at 74.10 per dollar against previous close of 74.08.
Nazara Technologies share price slips 12%:
Nazara Technologies share price slipped 12 percent on June 18. The Rakesh Jhunjhunwala-backed firm on June 16 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 around Rs 20 crore to acquire a 69.82 percent stake by way of primary and secondary transaction through its subsidiary, the company said in a release.
BSE Realty index fell 2 percent; all stocks in the red
Dodla Dairy IPO subscribed 4.48 times
The public issue of Dodla Dairy has seen a subscription of 4.48 times as the offer received bids for 3.81 crore equity shares against IPO size of 85.07 lakh equity shares on June 18, the final day of bidding.
The qualified institutional buyers have put in bids for 1.11 times of their reserved portion and that of non-institutional investors 1.95 times so far.
Market at 12 PM
Benchmark indices erased some of the intraday losses but still trading lower with Nifty around 15,550 level.
The Sensex was down 393.54 points or 0.75% at 51929.79, and the Nifty was down 131.40 points or 0.84% at 15560. About 580 shares have advanced, 2269 shares declined, and 99 shares are unchanged.
Top losers were UPL, JSW Steel, Tata Steel, Coal India and ONGC, while gainers included Adani Ports, Bajaj Auto, HUL, Eicher Motors and Divis Labs.
Nifty PSU Bank index shed over 3 percent dragged by the Punjab and Sind Bank, Canara Bank, UCO Bank:
KIMS Hospitals IPO issue subscribed 61% on final day
The initial public offering (IPO) of Krishna Institute of Medical Sciences (KIMS Hospitals) had seen a subscription of 61 percent by the morning of June 18, the last day of bidding.
The offer has received bids for 87.9 lakh shares against the IPO size of 1.44 crore shares, the subscription data on exchanges showed. The company is selling in a price band of Rs 815-825 a share.
Globus Spirits share price hits new 52-week high
Globus Spirits share price jumped over 8 percent on June 18 and touched a new 52-week high of Rs 584.40.
The stock has surged more than 36 percent in the last three days.
The stock has been in focus after the company's net profit jumped 161 percent to Rs 50.64 crore in the quarter ended March 2021 from Rs 19.40 crore during the year-ago quarter.
Kshitij Purohit, Lead International & Commodities at CapitalVia Global Research
: The USD-INR pair opened on a negative note and was moving in a strong bearish momentum, it is expected some fall in the prices as the prices had made higher highs and the RSI was making highs of similar levels. A sustainable closing below 20-EMA on 15-Minute charts will trigger a correction and prices may test 74.05 – 73.90 levels. on the other hand, if the same momentum continues, 74.33-74.37 could be seen acting as a vital resistance area.
Market update
: Sensex is down 598.50 points or 1.14% at 51724.83, and the Nifty shed 188.80 points or 1.20% at 15502.60. ONGC, SBI and JSW Steel are the top losers while SBI Cards, Adani Ports and Adani Enterprises are the most active stocks.
All sectoral indices are trading in the red with the midcap and smallcap indices falling 2-3 percent each.
Khadim India stock price hits 52-week high
Khadim India share price jumped over 12 percent on June 18, a day after the company reported a net profit of Rs 11.52 crore in the quarter ended March 2021 against a net loss of Rs 19.88 crore in the year-ago period.
The company's sales jumped 70.62 percent to Rs 269.95 crore in the quarter from Rs 158.22 crore in the corresponding period of the previous year.
Madhavi Arora, Lead Economist, Emkay Global Financial Services:
INR leads the EM Asia FX pack in losses today as the markets digest the hawkish FOMC with the median dot chart now indicating two rate hikes in 2023. This has help push the broad dollar up another 0.7% (currently at 91.65), implying pressure on EM currencies, led by high beta ones.
This comes in conjunction with RBI’s reiteration of its FX stance in yesterday’s bulletin, where it indicated that FX reserves are still not adequate enough when seen in the light of cross country comparison ratios, high net international investment position of (-)12.9% of GDP and random shocks amid heightened global uncertainty -- all of it implying that RBI’s tactical FX intervention in FX will be biased towards dollar purchases, keeping INR subdued/EM underperformer even in case of healthy EM flows.
Rupee Opens:
Indian rupee opened flat at 74.10 per dollar on Friday against previous close of 74.08, amid selling seen in the domestic equity market.On June 17, rupee ended 76 paise lower at 74.08 per dollar against its Wednesday's close of 73.32.
Market at 10 AM
Benchmark indices erased opening gains and trading near the day's low dragged by the metal, power and oil & gas.
The Sensex was down 189.84 points or 0.36% at 52133.49, and the Nifty was down 68.60 points or 0.44% at 15622.80.
Adani Ports, Infosys, Divis Labs, HDFC Life and HCL Tech were among major gainers, while losers were ONGC, JSW Steel, UPL, Tata Steel and Tata Motors.
All the sectoral indices were trading in the red.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
Macro signals continue to be mixed. While rising CPI inflation (6.3% in May) is a major concern, the performance of agriculture & advance tax numbers (up 150% in Q1 FY22) are positives. In spite of restrictions imposed in Q1, the GDP growth in FY 22 is likely to touch 9.5% with above 25% growth in corporate earnings.
Even though the market is exhibiting resilience, investors should be prepared for around 5% correction. From the global market perspective, it appears that markets have digested the mildly hawkish signal from the Fed. The US 10-year bond yield cooling-off from the high of 1.58 % touched after the Fed announcement to around 1.5% now is an indication that stock markets have shrugged off inflation fears for now.
Market Updates:
Benchmark indices erased opening gains and trading flat dragged by the metal, power and oil & gas.
At 09:45 IST, the Sensex was down 34.33 points or 0.07% at 52289, and the Nifty was down 23.90 points or 0.15% at 15667.50. About 1291 shares have advanced, 1233 shares declined, and 102 shares are unchanged.
Power Grid Corporation share price gains 3%
Power Grid Corporation of India share price added 3 percent on June 18 a day after company declared its March quarter results.
The company reported 6.4 percent jump in its March quarter consolidated net profit to Rs 3,526.23 crore against Rs 3,313.47 crore in the same quarter last year.
The company board has recommended issue of bonus shares in the ratio of 1:3 i.e. 1 new equity bonus share of Rs 10 each for every 3 existing equity share of Rs 10 each fully paid up share held by the shareholders, subject to approval of the shareholders of the company.
The company's board also recommended a final dividend of Rs 3 per share (i.e. at 30% on the paid up equity share capital) for the financial year 2020-21.
Foreign broking house CLSA has maintained buy on the stock with a target at Rs 275 per share.
BSE Metal index fell nearly 2 percent dragged by the Jindal Steel, Hindalco, SAIL
Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services:
Rupee fell sharply in yesterday’s session after the Federal Reserve released its policy statement, wherein it held rates unchanged but turned a little hawkish in its commentary. The Federal Reserve Chairman said that there had also been initial discussions about when to pull back on the Fed's $120 billion in monthly bond purchases, a conversation that would be completed in coming months as the economy continues to heal.
From the US, Philly fed manufacturing and weekly unemployment claims and better-than-expected economic data could further strengthen the dollar. We expect the USDINR (Spot) to trade with a positive bias and quote in the range of 73.70 and 74.30.
