Ajit Mishra, VP - Research, Religare Broking:
The positioning of the global markets will continue to dictate the market trend ahead also. Nifty should hold 9850 for any rebound else profit taking would continue. We suggest limiting the leveraged trades and keeping the existing positions hedged.
Sumeet Bagadia, Executive Director at Choice Broking:
With the passing of the session, we saw good correction in mostly large cap counters with on average 2-3% correction in the counters. At present level, downside support comes at 9800 while upside resistance comes at 10100 levels.
Sumeet Bagadia, Executive Director at Choice Broking:
With the passing of the session, we saw good correction in mostly large cap counters with on average 2-3% correction in the counters. At present level, downside support comes at 9800 while upside resistance comes at 10100 levels.
Rohit Singre, Senior Technical Analyst at LKP Securities:
Index witnessed a profit booking and closed a day at 9902 with loss of more than 2 percent and formed bearish candle on daily chart. Index closed below strong support zone of 10k mark and now if continue to trade below 10 mark then we may see some cuts towards immediate support zone of 9800-9700 zone. On the other hand strong hurdle is formed at 10000-10100 zone.
Nifty Bank closed a day at 20525 with loss of nearly 3 percent, support for Nifty Bank is coming near 20300-20000 zone and resistance is coming near 20800-21000 zone.
Vinod Nair, Head of Research at Geojit Financial Services:
The markets traded negative today on the back of data emerging globally and domestically. The awaited FOMC announcement drove the negativity in the international markets as the Fed diminished hopes of a quick recovery in the US economy, with their outlook. Major global indices were mostly in the negative. With infections continuing to remain high, the markets are also worried about any additional lockdown measures being imposed. This could mean offsetting the optimism of the last 2 weeks, where investors were banking on the economy restarting fully. Markets are in sync with global cues and with Nifty closing below the 10000 mark, investors are advised to be cautious.
Market Close
: Benchmark indices ended on negative note on June 11 on the back of weak global cues and Supreme Court's verdict on the AGR case.
At close, the Sensex was down 708.68 points or 2.07% at 33538.37, and the Nifty was down 214.20 points or 2.12% at 9902. About 1016 shares have advanced, 1497 shares declined, and 146 shares are unchanged.
IndusInd Bank, Nestle, Hero MotoCorp, M&M and Power Grid were among major gainers on the Nifty, while losers included Bharti Infratel, Zee Entertainment, SBI, Vedanta and Tata Motors.
All the sectoral indices ended in the red. BSE Midcap and Smallcap indices shed over 1 percent each.
Nifty PSU Bank index shed nearly 4 percent led by the SBI, UCO and IOB:
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
The markets were successful in breaking the range that it was stuck in. 10000 which was a crucial support was broken and we fell over a 100 points in no time. The level to watch out for would be 9850 where markets should take a breather. For the upside, the markets would now need to go past 10150.
At 15:16 IST, the Sensex was down 751.60 points or 2.19% at 33495.45, and the Nifty was down 227.35 points or 2.25% at 9888.85.
ICRA and CARE Ratings assigned ratings to the commercial papers of Hindustan Aeronautics worth Rs 2500 crore:
Nifty Bank Index shed over 2 percent dragged by the SBI, Bank of Baroda and Federal Bank, while IndusInd Bank rose over 5%:
Sameer Kalra, Founder, Target Investing:
The Supreme Court's observations are negative for telecom stocks as they will not get 20 years for sure. Moreover, they need to raise security for payments of the future so that is also a negative. They also have to come out with a clear road map in the next 5 days which is a task.
The Supreme Court of India has directed the Department of Telecommunications (DoT) to reconsider demands raised against public sector utilities that amount to over Rs 4 lakh crore.
Telecom companies said that they are studying Supreme Court (SC) order and will file a response accordingly. It is difficult to give bank guarantees at this juncture. Also studying what securities can be provided. They offered licence & spectrum cancellation as assurance to SC, quoting Source, reported CNBC-TV18.
Rajesh Agarwal of AUM Capital:
Hon'ble Supreme Court today gave a sigh of relief to PSU companies by asking the Union government to reconsider its demand of Rs 4 lakh crore, Adjusted Gross Revenue (AGR) from PSUs, terming it as totally impermissible'.
Many of the PSU companies that have been served the AGR demand has witnessed a severe cut in their market cap despite good fundamentals. Any positive outcome on this would be a huge trigger.
BSE Telecom index shed over 4 percent post AGR case outcome:
Ajay Bodke, CEO & Chief Portfolio Manager (PMS), Prabhudas Lilladher on AGR dues case:
Any hopes that the Honourable Supreme Court would reconsider its judgment and reduce the amount of AGR dues for telecom operators looks to have been dashed completely. Even government's proposal of offering a 20-year window for staggered payments hasn't yet been accepted by the Court. It has asked the telcos to present their views on the timeframe to pay the dues and the nature of guarantees.
Whether the telcos would be comfortable offering personal guarantees of their directors as mentioned by the Court during the course of the hearing is the key. Any denial of personal guarantees may not be looked upon favorably by the Court. The directors of telcos are surely in the most unenviable position.
The Court is clearly miffed with DOT officials for raising gargantuan demands with what it termed as " ulterior motives" with respect to non-telecom PSUs like Gail, OIL, GNFC and PFC and has initiated action against them.
It has hinted that there appears to be a concerted attempt at creating panic by issuing notices for recovery of lakhs of crores of rupees against non-telecom PSUs. It does look like a treacherous path for the weak among the telecom operators who might survive but will be in an extremely weakened financial condition ever susceptible to emerging vulnerabilities.
At 14:31 IST, the Sensex was down 669.79 points or 1.96% at 33577.26, and the Nifty was down 200.95 points or 1.99% at 9915.25.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities:
Crude oil prices extended declines for the second day with NYMEX WTI Crude oil prices fell by 3 percent to USD 38 on Thursday. Crude oil futures prices at MCX for the June contract were trading down by 2 percent to Rs 2,900 by noon session.
We expect oil prices to trade sideways to down for the day with support at USD 36 and resistance at USD 40. MCX Crude oil June futures has support at Rs 2,790 with resistance at Rs 2,940.
European markets have opened in the red with major indices trading over 2 percent lower
Rupee ends lower
The Indian rupee ended at 75.78 per USD against Wednesday's close of 75.58 per USD, down 20 paisa amid selling seen in the domestic equity market. It opened 21 paise lower at 75.80 per dollar versus previous close of 75.59.
AGR case hearing
: The Supreme Court has directed DoT to reconsider demands raised against PSUs. Telcos to file reply on roadmap of payment, time to be allowed, securities. The Supreme Court will next hear AGR case on June 18
Most active stocks on NSE in terms of volumes
BSE Telecom Index trading lower ahead of AGR Verdict:
Rupee trades lower
Indian rupee is trading lower at 75.79per dollar, amid selling seen in the domestic equity market.
Telecom stocks in focus
Telecom stocks are remain in focus ahead of the adjusted gross revenue (AGR) case outcome today.
The Supreme Court hearing is going on the adjusted gross revenue (AGR) case today. This hearing comes after the one held on March 18, where the apex court pulled up the Department of Telecommunications (DoT) for allowing telcos to self-assess payable dues.
Crude Updates
Oil prices fell by about 4% on Thursday on worries about slow demand growth as coronavirus cases rise, with US crude stockpiles hitting an all-time high and the US Federal Reserve saying recovery from the pandemic could take years.
At 12:36 IST, the Sensex was down 444.80 points or 1.30% at 33802.25, and the Nifty was down 131.10 points or 1.30% at 9985.10.
Nifty Bank Index fell 1 percent dragged by the ICICI Bank, Kotak Mahindra Bank, Axis Bank:
Gaurav Garg, Head of Research at CapitalVia Global Research Limited – Investment Advisor:
Metal sector is struggling with over-supply, lower demand, thus leading to low prices of metals and continuously rising inventories. Now that the lockdown is being lifted in a phased manner, there is a possibility of revival in coming few quarters.
However, prices are expected to remain on the muted side until there is a major surge in demand or sharp off-loading in inventory volume. This has put a heavy toll on the stocks and metal index corrected around 65 percent from 2018 highs and made its bottom in March 2020. Stocks like Tata Steel, Hindalco and Mishra Dhatu Nigam (MIDHANI) are positioned at attractive valuations and might give good returns over the time.
Gold Updates
Gold eased on Thursday as investors booked profits after prices rose to a more than a one-week high on bleak economic projections from the US Federal Reserve.
Asia stocks snap winning streak
Asian shares retreated on Thursday as a gloomy outlook from the US Federal Reserve challenged market optimism on the global economy, while bonds rallied on speculation that yet more stimulus would be needed to ensure recovery, reported Reuters.
Open Interest Data:
Nifty Pharma Index fell 1 percent led by the Sun Pharma, Aurobindo Pharma, Dr Reddy's:
Market Update
Benchmark indices are trading near the day's low level with Nifty around 10000 level.
Rupee trades lower
Indian rupeeistrading lower at 75.81 per dollar, amid selling seen in the domestic equity market.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
: Markets have turned rangebound and this could also be because it is the weekly derivative expiry. We are stuck in a range between 10,000 and 10,150. It is a very narrow range but if we trigger either, we should get back into a trending market. If we break 10,000, we should go down further to 9,850. If we cross 10,150, we should go up to 10,300.
Most active stocks on NSE in terms of volumes
Sameet Chavan, Chief Analyst - Technical and Derivatives, Angel Broking
: Despite SGX Nifty indicating a gap up opening, our markets started on a flat note. However, in the initial half an hour of trade, we saw index heading higher first and then almost correcting back to Tuesday’s low. This see-saw kind of movement was repeated as the day progressed. However from nowhere, we witnessed a complete gush in last 30 minutes of trade in the broader market. As a result, the Nifty spiked up 100 points within no time to reclaim the 10100 mark on a closing basis.For the major part of the day, index remained muted with no clear direction.
We continue with our positive stance as long as 10,000-9,900 is being defended successfully. Although, index is struggling around 10,200-10,300, we will not be surprised it to be crossed in coming days. Today being the weekly expiry, one should adopt a buy on dips strategy and in case of any early morning dip towards 10,070-10,040 should be treated as a buying opportunity. We expect the move to first continue towards 10,200 and if momentum permits, we can even continue this march towards 10,250-10,300 levels.
Hareesh V, Head Commodity Research at Geojit Financial Services: A weak US dollar and equities after gloomy economic projections from the US Federal Reserve continue to support gold’s haven appeal. Meanwhile, with the restarting of global economic activities with lockdown easing in many countries is likely to limit major gains.
Recovery rallies would continue as long as prices stay above USD 1,665. Next resistances are seen at USD 1,740 followed by USD 1,780 levels.
Anuj Gupta, DVP–Commodities & Currencies Research, Angel Broking:
Today, Gold prices are trading on a positive note as FED kept interest rates unchanged. Along with the rate decision, the US FED projected that the economy will shrink 6.5% in 2020, and this projection supports the safe heaven demand for Gold.
We are recommending to buy Gold. For intraday perspective, traders can buy Gold at 47000 levels, with the stop-loss of 46750, for the target of 47600 levels. Weakness in dollar and low bond yields may also support the gold prices. In international market, Gold may test USD 1750 levels soon.
At 10:28 IST, the Sensex was down 106.98 points or 0.31% at 34140.07, and the Nifty was down 22.10 points or 0.22% at 10094.10.
Buzzing
Indian Hotels share price was down 2 percent on June 11 after company reported a consolidated net profit of Rs 76.29 crore for the March quarter, hit by the COVID-19 pandemic. It had posted a net profit of Rs 122.56 crore in the same period of the previous fiscal.
Rupee Opens
Indian rupee slipped in the early trade on Thursday. It opened 21 paise lower at 75.80 per dollar versus previous close of 75.59.
