Vinod Nair, Head of Research at Geojit Financial Services:
The border dispute between India and China resulted in volatility in the stock markets, on tensions of further escalation of dispute. This was in spite of steady global markets following the announcement of the US Fed reserve’s expanded bond-buying program. Investors seem to have set aside the news emerging from the border and are still hoping on the fact that liquidity will keep propping the markets, for the time being. India can ill-afford another battlefront, since it is still battling the virus pandemic and will need to be watched out for.
S Ranganathan, Head of Research at LKP Securities:
Dalal Street witnessed significant volatility amidst India-China tension in Ladakh. The markets finally managed to recover lost ground helped largely by the HDFC twins & ICICI Bank in late afternoon trade.
Sumeet Bagadia, Executive Director at Choice Broking:
The index started its day with gap up opening with more than 200 points on back of global cues, however, the early gain couldn’t sustain long and we witnessed a healthy fall in the Index due to the news of India China Face off. However, with the passing of 2nd half, the Index started to recover from its day low and finally settled at 9914 level with the gain of 100 points. Overall it was a highly volatile trading session with roller-coaster ride. At present level, downside support comes at 9700 while upside resistance comes at 10000 level.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
We had a rangebound day where we almost triggered both ends of the range. We were unable to cross 10050 or break 9700. Until the month end expiry, both levels are very crucial for the market as we could expect a one sided decisive move if either levels are taken out.
Ajit Mishra, VP - Research, Religare Broking:
Markets are witnessing wild swings and it may continue as we’re mirroring the global markets. Besides, the stand-off between India and China at LAC will also be on investors' radar and any further escalation could negatively impact the markets. On the index front, a decisive breakout above 10,050 in Nifty can only trigger a fresh up move else consolidation will continue. We reiterate our view preferring hedged bets in the present.
Deepak Jasani, Head Retail Research, HDFC Securities
Technically, with the Nifty bouncing back strongly from the supports of 9720, the bulls are trying to make a comeback. The 9720 levels has been tested twice in the last two sessions and has held, suggesting it is a strong support. Markets could rally higher if these supports hold in the near term.
Market Close
: Indices witnessed a volatile trade but ended in positive territory on June 16 amid positive global cues and escalating tensions between India and China.
At close, the Sensex was up 376.42 points or 1.13% at 33605.22, and the Nifty was up 100.30 points or 1.02% at 9914. About 1191 shares have advanced, 1350 shares declined, and 150 shares are unchanged.
HDFC Bank, HDFC, ICICI Bank, JSW Steel and Hindalco Industries were among major gainers on the Nifty, while losers were Tata Motors, Bharti Infratel, Tech Mahindra, GAIL and Axis Bank.
On the sectoral front, IT and Metal indices ended higher, while selling pressure seen in the pharma, energy, FMCG and infra sectors.
Shilpa Medicare falls 9% despite strong quarterly earnings:
Shares of Shilpa Medicare fell 8.8 percent on June 16 despite company has registered a 45 percent year-on-year growth in March quarter profit at Rs 34.57 crore on strong revenue as well as operating income. Revenue from operations during the quarter grew by 10 percent to Rs 220 crore compared to corresponding period last year.
Ind-Swift Labs hits upper circuit
Ind-Swift Laboratories shares were locked in 10 percent upper circuit on June 16 ahead of antihistamine drug launch in the US markets.
"We are set to commercially launch key API - Fexofenadine, an antihistamine drug used for the treatment of seasonal allergic rhinitis and Urticaria in US market," Ind-Swift Laboratories in its BSE filing on June 15 said.
Buzzing
Shares of Jump Networks gained 14 percent on June 16 as US-based technology investment group will infuse substantial equity funds in company.
The technology company informed exchanges that it has received a letter from Jump Networks Inc, USA (an entity controlled by Harshawardhan Sabale, the Managing Director of Jump Networks Limited) that it has entered into a conditional Letter of Intent with a California, USA based technology investment group listed on the New York Stock Exchange to infuse substantial equity funds in the company.
Kotak Mahindra Bank cuts base rate
: Kotak Mahindra Bank has cut base rate and prime lending rate by 30 bps each, reported CNBC-TV18.
Shilpa Medicare approves acquisition:
Shilpa Medicare in its board meeting approved to acquire FTF Pharma Private Limited subject to agreed terms and conditions and to acquire Auxilla Pharmaceuticals And Research LLP through Shilpa Corporate Holdings Private Limited a Wholly Subsidiary of the Company.
Promoters pledge shares:
Asian Paints promoters pledge 2,078,000 equity shares worth Rs 33447 lakh. The shares of Asian Paints was quoting at Rs 1,619.45, up Rs 1.40, or 0.09 percent.
At 14:41 IST, the Sensex was up 266.38 points or 0.80% at 33495.18, and the Nifty was up 69.45 points or 0.71% at 9883.15. About 1029 shares have advanced, 1333 shares declined, and 100 shares are unchanged.
Maruti Suzuki ties-up with IndusInd Bank
Maruti Suzuki India (MSIL) has collaborated with IndusInd Bank to arrange attractive finance schemes to help customers buy their favourite car. MSIL has been arranging consumer finance with finance partners to support progressive restart of business activities in the automobile industry.
Nifty Pharma Index slipped 0.5 percent dragged by the Cadila Healthcare, Lupin, Cipla:
Market Update
Benchmark indices turned volatile in the afternnon session amid fears of escalating tensions between India and China after the Indian army said one of its officers and two soldiers were killed in a "violent faceoff" on a contested border.
At 14:20 IST, the Sensex was up 190.08 points or 0.57% at 33418.88, and the Nifty was up 47.20 points or 0.48% at 9860.90. About 963 shares have advanced, 1369 shares declined, and 109 shares are unchanged.
Follow our LIVE blog for the latest updates on the India-China Tension:
India-China Border Update
Both sides (India and China) have suffered casualties during violent face-off, reports CNBC-TV18 quotingArmy sources.
Rupee Closes
The Indian rupee ended at 76.21 agains the US dollar, down 19 paise compared to previous close of 76.02 a dollar.
Imports Declined Faster Than Exports In May’20
Coronavirus Update
India has reported more than 3.4 lakh confirmed infections with 9,900 deaths. On June 15, 11,500 people are infected by the virus.
Market Highly Volatile
The market turned volatile amid tensions at India-China border, with the Nifty50 rising46.50 points to9,860.20. The BSE Sensex gained178.98 points at33,407.78.
Total Market Value of FII Holdings in India
Rupee Update
The Indian rupee weakened further in afternoon, depreciating by 22 paise to76.25 against the US dollar.
Earnings Scorecard
Ipca Labs' standalone profit in March quarter grew by 16.7 percent to Rs127.76 crore and revenue rose by 20.5 percent to Rs1,004.79 crore compared to year-ago.
Ipca Labs Earnings Scorecard
Ipca Laboratories has reported a 12.7 percent year-on-year decline in March quarter consolidated profit at Rs 86 crore, but revenue from operations grew by 22.1 percent to Rs 1,073.76 crore YoY.
Indo-China Border Row
Defence MinisterRajnath Singh meets CDS Rawat, 3 Services chiefs and External Affairs Minister after violent face-off took place yesterday, reports CNBC-TV18 quoting ANI.
Market Off Day's High
The market erased all its morning gains to trade moderately lower following tensions at India-China border.
An Indian Army officer and two jawans were killed in action in a ‘violent face-off’ with Chinese troops on June 15 during the de-escalation process in Ladakh'sGalwan Valley.
Senior military officials from India and China are trying to defuse the situation.
“During the de-escalation process underway in the Galwan Valley, a violent face-off took place yesterday night with casualties. The loss of lives on the Indian side includes an officer and two soldiers. Senior military officials of the two sides are currently meeting at the venue to defuse the situation,” an official statement says.
The Nifty50 fell21.10 points to9,792.60, while the BSE Sensex was down45.94 points at33,182.86.
Trident Gets Patent
Trident said it has been granted a patent for ‘PILE FABRIC AND METHODS FOR MANUFACTURE OF THE SAME’ by United States Patent Office.
"The present invention provides for a woven pile fabric comprising a plurality of warp yarns and plurality of weft yarn intersecting the plurality of warp yarns, two or more multi-ply pile yarn woven to form a plurality of pile loops wherein within each pile loop a first pile component yarn forms a first sub loop and the second pile component yarn forms a second sub loop such that multiple sub-loops are formed after weaving," company said in its BSE filing.
North Korea appears to have blown up an inter-Korean liaison office located in its city of Kaesong, Yonhap news agency said on Tuesday, citing a South Korean military source, reported Reuters.
At 13:07 IST, the Sensex was up 155.08 points or 0.47% at 33383.88, and the Nifty was up 44.15 points or 0.45% at 9857.85.
Gold Updates
Gold rose on Tuesday after the U.S. Federal Reserve widened its program of buying corporate debt to combat the financial toll of the pandemic as worries grow about a second wave of coronavirus infections.
European Markets open higher:
At 12:33 IST, the Sensexwas up 313.20 points or 0.94% at 33542.00, and the Nifty was up 90.90 points or 0.93% at 9904.60.
ICICI Bank has cut retail term deposit rates by 15-75 bps across tenors, reported CNBC-TV18.
Asian Markets trade higher:
Balkrishna Industries resumes operations
Balkrishna Industries’ manufacturing plant at Bhuj, Gujarat has resumed its operations.
HCL Infosystems at lower circuit
Shares of HCL Infosystems were locked in a 5 percent lower circuit on June 16 after the company said its consolidated loss widened to Rs 70.94 crore for the March 2020 quarter from Rs 43.9 crore in the year-ago period. The company's revenue from operations also decreased to Rs 227.71 crore in the January-March quarter from Rs 875.60 crore a year ago.
Nifty Metal Index added nearly 3 percent supporetd by the MOIL, Jindal Steel and JSW Steel:
Rupee extends gains
Indian rupee has extended the gains and trading higher by 20paiseat 75.83,amid buying seen in the domestic equity market.
Rakesh Jhunjhunwala bought additional 6 lakh shares of Jubilant Life Sciences via open market on June 15, reported CNBC-TV18.
Zydus Cadila gets USFDA nod
ZydusCadilahas received final approval from theUSFDAto marketDeferasiroxTablets in the strengths of 90 mg, 180 mg and 360 mg.
Results on June 16
HPCL, NMDC, Ashiana Housing, Bhansali Engineering Polymers, Bliss GVS Pharma, Globus Spirits, Ipca Laboratories, Bank of Maharashtra, Manali Petrochemical, Navin Fluorine International, Schneider Electric Infrastructure etc will declare their March quarter earnings today.
CHART OF THE DAY
Breadth of BSE Sensex Strong
Among BSE Sensex stocks, 28 stocks traded in the green whereas the rest two were marginally lower.
