Jateen Trivedi, Senior Research Analyst at LKP Securities:
Rupee traded strong near 74.30 on back of retreat from dollar index prices as US Nonfarm payroll and Unemployment numbers did not encourage dollar and FED tapering can be delayed if data stays weak monthly. Inflow in the financial sector also helped rupee cheer by 0.40p. Going ahead the range of rupee can be seen between 74.15-74.60
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The markets have been in fine form for the entire duration of trade today. However, we should take a call on the upside only when we cross 15900 on a closing basis. That would trigger renewed interest and momentum which should take the Nifty to 16100. The index is still range bound between 15400 and 15900.
Rupee Close:
Indian rupeeendedhigher by43paise at 74.31per dollar, amid buyingsawin the domestic equity market.It opened 22 paise higher at 74.52 per dollar against Friday's close of 74.74 and traded in the range of 74.30-74.55.
Market Cues:
Benchmark indices ended higher for the second consecutive day on July 5 with Nifty above 15,800.
At close, the Sensex was up 395.33 points or 0.75% at 52,880, and the Nifty was up 112.20 points or 0.71% at 15,834.40. About 2174 shares have advanced, 1086 shares declined, and 162 shares are unchanged.
Hindalco Industries, ONGC, SBI, Tata Steel and Coal India were among the top gainers on the Nifty. Top losers were HDFC Life, Tech Mahindra, Dr Reddy’s Labs, BPCL and Britannia Industries.
Among sectors, the bank, metal, realty and PSU Bank indices rose 1-3, while some selling seen in the IT and power names. BSE midcap and smallcap indices rose 0.3-0.8 percent.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
After a few days of the lackluster movement, the market witnessed a positive trend in today’s activity. The market shows that the expected levels are likely to be in the range of 15800 and 15950, and it is going to be crucial for the short-term market scenario to sustain above the 15800 Nifty50 Index level. The market observed that the momentum indicators like RSI and MACD have recovered from their respective oversold zone and support the upside move and indicating potential upside from the current market level.
BSE Bankex index gained 1 percent supported by the Federal Bank, SBI, Axis Bank
Casinos in Goa will remain shut, while in Sikkim will resume operations: Delta Corp
Due to the surge in COVID-19 cases being witnessed in Goa, the Government of Goa has extended the restrictions in the state respectively till July 12, 2021. Accordingly, the casinos operated by the Company and its subsidiaries in Goa will remain closed during this period.
The Government of Sikkim has allowed reopening of the Casinos in the State subject to the safety norms being followed. Further the company and/or its subsidiary operating the Casino in the state of Sikkim will resume its operations from July 06, 2021 and will follow all the safety norms laid down by the state in this regards, company said in its release.
Delta Corp was quoting at Rs 195.30, up Rs 7.70, or 4.10 percent on the BSE.
Print media revenue seen at 75% of pre-pandemic level this fiscal: CRISIL Ratings
The print media sector in India will reach only three-fourths of its fiscal 2020 revenue mark despite ~35% on-year growth this fiscal, on a low base. Profitability, however, will revive to 9-10%, driven by sharp cost rationalisation measures and digitalisation of content, despite the recent rise in newsprint prices.
Market at 3 PM
Benchmark indices were trading higher with Nifty holding above 15800 mark.
The Sensex was up 363.46 points or 0.69% at 52,848.13, and the Nifty was up 105.00 points or 0.67% at 15,827.20. About 2057 shares have advanced, 998 shares declined, and 133 shares are unchanged.
Hindalco Industries, Tata Steel, Eicher Motors, L&T and Bajaj Finserv were among major gainers, while losers were HDFC Life, Tech Mahindra, Britannia Industries, BPCL and HCL Technologies.
Nifty Metal index added over 1 percent led by the Vedanta, MOIL, Hindalco Industries
Sneha Poddar, AVP, Research, Broking & Distribution, Motilal Oswal Financial Services:
India Pesticides listed strongly on the exchanges today with 21% premium at Rs 360 per share against its issue price of Rs 296. It had seen healthy overall subscription of 29x, given its presence in the fast growing agrochemical space. IPL is the sole Indian manufacturer of five TECHNICALS and among the leading manufacturers globally for Captan, Folpet and Thiocarbamate Herbicide, in terms of production capacity.
Global agro-chemicals market is expected to grow at 7% CAGR to USD86bn by 2024 and IPL is well placed to tap this opportunity. Technicals in India which is strongly driven by export led demand and contract manufacturing, is expected to grow at 8% CAGR. With China+1 strategy, it opens huge opportunity for Indian players like IPL.
IPL plans to tap this opportunity by manufacturing complex off patented technicals, wherein 19 Technicals are expected to go off-patent between CY19-26 (opportunity of >USD4.2bn).
We like IPL given its presence in fast growing agrochemical space, diversified product portfolio and robust financials. Expanding product portfolio, growing customer base and increasing wallet share of existing customers can help IPL maintain its growth momentum. It is reasonably valued at 30.8x FY21 P/E, vis-à-vis peers, while it enjoys higher RoE of 36%.
Nifty IT solitary sectoral loser:
While all sectoral indices traded in the green along with the benchmarks, the Nifty IT index bucked the trend and traded in the red.
Over 620 stocks hit their upper circuits on BSE
More than 620 stocks, including HFCL, Apex Frozen Foods, Jain Irrigation Systems, HCC, Suzlon Energy, Bajaj Hindusthan Sugar and Trident, hit their upper circuits on BSE.
Rahul Bajoria, Chief India Economist, Barclays India
The services PMI remained in the contractionary zone in June, declining for the second consecutive month. However, the easing of movement curbs should help boost activity in the coming months.
Given the moderation in the virus caseload and partial easing of restrictions seen across many states in June, we expect the slowdown in activity to start turning around in Q3 21.
While activity indicators have shown some moderation in April-May, the loss of momentum is still only a fraction of the hit seen during the 2020 lockdowns. We continue to forecast GDP growth of 9.2 percent in FY2021-22, a tad below the RBI’s 9.5 percent projection.
Market at 2 PM
Key indices the Sensex and the Nifty are up with strong gains, with most sectors contributing to the rally.
The Sensex was up 371 points or 0.71 percent at 52,856, and the Nifty was up 107 points or 0.68 percent at 15,830. About 2,195 shares have advanced, 1,070 shares declined, and 171 shares are unchanged.
Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities:
On Friday, the number of jobs added in the US over the month of June was stronger than expected but the US Dollar Index moved lower on the back of an uptick in the unemployment rate and lower than expected wage growth. However, with the underlying economic strength intact we expect DXY to recover over this week. At the same time, an uptrend in oil prices will ensure that, USDINR remains in uptrend. The near-term range can be 74.50 to 75.10 on July futures.
Rupee Updates:
Indian rupee extended the intraday gains and trading higher by 39 paise at 74.35 per dollar, amid buying seen in the domestic equity market.
It opened 22 paise higher at 74.52 per dollar against Friday's close of 74.74.
ITD Cementation bags orders worth Rs 585 crore
ITDCementation India has secured two orders worth Rs 585 crore.The company secured order from Gujarat Metro Rail Corporation Limited for development and construction of Dream City Depot including Metro Bhavan and associated Electrical & Mechanical works in connection with Surat Metro Rail Project, Phase-1.
Also, it got order from Military Engineer Services for construction of Aero Space Museum at Air Force Station in Palam, Delhi.
ITD Cementation India was quoting at Rs 87.20, up Rs 4.30, or 5.19 percent on the BSE.
Asian stocks stumble on China tech worries
Asian stocks were mixed on Monday amid growing worries about China's crackdown on local tech companies, paring earlier gains made after a welcome U.S. jobs report drove global shares to a record high.
Gaurav Garg, Head of Research, CapitalVia Global Research:
In Monday's early transactions, Indian benchmark indices surged more than half a percent, reflecting robust Asian signals. Sentiments remain positive with Commerce and Industry Minister Piyush Goyal's announcement that India has set a target of $400 billion in product exports for 2021-22. Though the sentiments remain positive there was some cautiousness observed in the investor’s behavior as a private survey revealed that activity in India's main services sector fell dramatically in June as stricter limitations to curb a return of coronavirus cases battered demand and drove enterprises to slash positions at a rapid pace.
After jobs statistics for June revealed solid hiring but continued weakness in the labor market, Wall Street hit record highs on Friday, with the S&P 500 closing up for the seventh day in a row. This will keep the Federal Reserve from hiking interest rates any time soon.
We witnessed an attempt to hold the Nifty 50 index support level of 15800. 15800 will be an important level in the short term for the market to stay positive. If the market breaches 15900 and sustains above the level, we expect the market to gain momentum, leading to an upside projection till 16100-16200 level. On the sectoral front all, major sectors have been trading in the positive zone. Hindalco and Eicher Motors are the top gainers while Tech Mahindra and BPCL are the top losers on Nifty.
Market at 1 PM
Benchmark indices were holding on the early gains with Nifty above 15800.
The Sensex was up 310.39 points or 0.59% at 52795.06, and the Nifty was up 89.20 points or 0.57% at 15811.40. About 2029 shares have advanced, 948 shares declined, and 139 shares are unchanged.
Hindalco Industries, Gland Pharma, L&T, Eicher Motors and Bajaj Finance were among major gainers on the Nifty.
ICRA reaffirms rating of Ramkrishna Forgings:
The credit rating of Ramkrishna Forgings, has been reaffirmed at A- and outlook has been changed from stable to positive by ICRA.
Panacea Biotec gets DCGI license to manufacture Sputnik V vaccine
Panacea Biotec share price rose 9 percent on July 5 after company received manufacturing license from Drugs Controller General (India) (DCGI) for Sputnik V vaccine.
".... announces receipt of manufacturing license from Drugs Controller General (India) for Sputnik V vaccine against Covid-19 pursuant to its collaboration with Russian Direct Investment Fund (Russia’s sovereign wealth fund)," compamy said in its release.
Market at 12 PM
Benchmark indices are trading higher with Nifty above 15800 supported by the auto, realty and financial names.
The Sensex was up 366.65 points or 0.70% at 52851.32, and the Nifty was up 104.50 points or 0.66% at 15826.70. About 2064 shares have advanced, 884 shares declined, and 128 shares are unchanged.
Prabhudas Lilladher on G R Infraprojects
We recommend subscribe rating on G R Infraprojects (GRIL) IPO issue given a) strong pedigree management with excellent execution capabilities, b) lean balance sheet (standalone Net D/E: 0.3x), robust earnings growth (45% CAGR Over FY16-21) and c) well placed to capitalize huge opportunities in infra space (NIP of ~ Rs 111trn).
GRIL has gradually emerged as an integrated road EPC player having successfully executed more than 100 road projects (since 2006) across 15 states with one of the fastest growth in order book (10x) over FY14-21.
Asian Markets trade mixed
Marico share price rises nearly 2% on robust volumes in Q1 FY22
Marico share price rose nearly 2 percent in early trade on July 5 after the company reported its operating performance for the first quarter of FY22.
The India business delivered 30% plus revenue growth, backed by robust double-digit volume growth, the company said in its release.
Rupee Updates:
Indian rupeeis trading higher at 74.52 per dollar, amid buying seen in the domestic equity market.It opened 22 paise higher at 74.52 per dollar against Friday's close of 74.74.
India's contribution to world m-cap rises
Monsoon update
After cruising through the first few weeks of June, monsoon rainfall has been subdued, with precipitation levels below normal for the past 10 days, Rahul Bajoria, Chief India Economist, Barclays India, pointed out.
The Indian Meteorological Department (IMD) said westerly winds are likely blocking the passage of the southwest monsoon through northern parts of the country. The agency expects rainfall to remain below normal through at least 7 July.
Cumulative rainfall through 4 July was just 1 percent above the long-period average (LPA), as reduced precipitation eliminated the significant surplus seen earlier in the month (more than 40 percent).
The progress of monsoon over July-August is critical, as it has a significant bearing on crop output for the year, said Bajoria.
Market at 11 AM
Domestic market benchmarks the Sensex and the Nifty are up with healthy gains. Sensex is up 362 points, or 0.69 percent, at 52,847 while the Nifty is at 15,826, up 103 points, or 0.66 percent.
Buzzing:
Avenue Supermarts share price added 2 percent on July 5 after the company's revenue jumped over 31 percent in the quarter ending June 30, 2021.
Its standalone revenue from operations rose 31.27 percent to Rs 5,031.75 crore for the quarter ended June 30. The company had Rs 3,833.23 crore revenue from operations in the year-ago quarter, Avenue Supermarts informed the BSE in a regulatory filing.
The popular retail chain had 238 stores as on June 30, 2021.
JUST IN |
India June Services PMI was at 41.2 against 46.4 and June Composite PMI was at 43.1 against 48.1, MoM.
Heranba Industries gets environmental clearance for Gujarat plant
Heranba Industries has received Environmental Clearance from Ministry of Environment, Forest and Climate Change of Government of India, for expansion of Pesticides Intermediates, Fungicides, Herbicides, Insecticides Manufacturing at Plot No-2817/1, Chemical Zone, Near Sandhya Chemical, Notified Industrial Area, GIDC Sarigam, Taluka Umbergaon, District Valsad, Gujarat (Sarigam Plant), cpmpany said in its release.
Heranba Industries was quoting at Rs 736.05, up Rs 33.35, or 4.75 percent on the BSE.
Yes Bank Q1 Update:
Yes Bank's loans & advances were down 1.8% QoQ at Rs 163,914 crore and deposits were up 0.2% QoQ at Rs 163,295 crore.
Yes Bank was quoting at Rs 13.54, down Rs 0.02, or 0.15 percent on the BSE.
Rupee Opens:
Indian rupee gained in the early trade on July 5. It opened 22 paise higher at 74.52 per dollar Monday on against Friday's close of 74.74, amid buying seen in the domestic equity market.
On July 2, rupee slipped to over 2 months low and ended lower by 19 paise at 74.74 per dollar versus Thursday's close of 74.55.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments:
The Nifty took good support at the 15600-15650 level on Friday. This morning we have bounced from there and can scale to 16100 only if we get past 15900 on a closing basis. The markets are still range-bound between 15400 and 15900 and until we do not get past one of the levels, we will not witness a meaningful move. However, the bias remains on the upside.
BSE Realty index added 1 percent; all the stocks are trading in the green:
Market at 10 AM
Benchmark indices extended the opening gains and trading near the day's high level.
The Sensex was up 306.58 points or 0.58% at 52791.25, and the Nifty was up 89.30 points or 0.57% at 15811.50. About 1992 shares have advanced, 754 shares declined, and 132 shares are unchanged.
India Pesticides shares list at 21% premium over IPO price:
Agrochemicals company India Pesticides shares listed at Rs 360 - a 21.62 percent premium - on July 5. The stock opened at Rs 360 on the BSE, against issue price of Rs 296. Click to Read More
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
An important recent trend is the divergence in market performance in developed & emerging markets, with the latter underperforming. Many factors like the strong rebound in growth in the US ( June new jobs data came in at 8.5 lakhs against expectations of 7.06 lakhs), strengthening dollar, high valuations in some emerging markets and the consequent sustained FII selling have contributed to this underperformance.
A strong rebound in US growth might nudge the Fed to advance rate increases. Of course, they will do this by giving carefully worded advance hints. But markets may anticipate the Fed moves and set directions. Even though the market is strong & resilient in India, at the current level of valuations the risk-reward ratio is not in favour of reward. At higher levels, FIIs are likely to sell more. Q1 FY22 results season kicking off this week is also likely to witness stock-specific action.
HDFC Bank Q1 Update:
HDFC Bank's advances aggregated to approximately Rs 11,475 billion as of June 30, 2021, a growth of around 14.4% over Rs 10,033 billion as of June 30, 2020 and a growth of around 1.3% over Rs 11,328 billion as of March 31, 2021.
The bank’s deposits aggregated to approximately Rs 13,460 billion as of June 30, 2021, a growth of around 13.2% over Rs 11,894 billion as of June 30, 2020 and a growth of around 0.8% over Rs 13,351 billion as of March 31, 2021.
HDFC Bank was quoting at Rs 1,495.85, up Rs 15.20, or 1.03 percent.
Gold Updates
Gold prices edged lower on Monday after hitting a two-week high in the previous session, weighed down by a slight uptick in the dollar, while investors awaited more U.S. economic data for clues on the Federal Reserve’s monetary policy plans.
India Pesticides shares to list today
Shares of agrochemical company India Pesticides will debut on bourses today, July 5. Experts expect the counter to list with a double-digit premium over its issue price given the strong response to its IPO as well as general bullishness around the sector. The issue price has been fixed at Rs 296.
