Shrikant Chouhan, Executive Vice President, Equity Technical Research a t Kotak Securities
Technically, on intraday charts the index has formed lower top formation which indicates further weakness from the current level. For the next few trading sessions, 15780/ 52750 could act as important resistance levels for the traders and below the same, correction wave could continue up to 15635-15600/52200-52000 levels. On the other hand, the immediate hurdle would be 15780/ 52750, and trading above the same we can expect continuation of uptrend up to 15830-15860/ 53000-53150 levels.
Ajit Mishra, VP - Research, Religare Broking:
Markets would first react to TCS numbers in early trade on Friday and that might set the tone for the result of the session as well. Further, demand scenario and management commentary will be crucial factors to watch in Q1FY22 results. We suggest keeping a check on naked leveraged positions and wait for clarity. Investors, on the other hand, should not read much into the intermediate correction and continue with the “buy on dips” approach in fundamentally sound counters with a long term view.
Rupee Close:
Indian rupee ended 10 paise lower at 74.71 per dollar, amid selling saw in the domestic equity market.It opened 20 paise lower at 74.81 per dollar against previous close of 74.61 and traded between 74.65-74.84.
Lakshmi Iyer, CIO (Debt) & Head Products, Kotak Mahindra Asset Management Company:
June month saw flattish net sales in Fixed income - it being a month end and quarter end too. FMP a category continued to net sales negative as investors seem to adopt a wait and watch approach before locking in funds. Gold ETFs continued to add net positive AUMs month on month and witnessed a steady rise in folios too. Hybrid funds saw the highest net sales in June at over Rs 12,000 crore compared to April and May for Q1 of FY 22.
Market Close:
Benchmark indices erased previous session gains and ended nearly a percent lower dragged by the bank, metal and pharma names.
At close, the Sensex was down 485.82 points or 0.92% at 52568.94, and the Nifty was down 151.80 points or 0.96% at 15727.90. About 1277 shares have advanced, 1648 shares declined, and 112 shares are unchanged.
Tata Motors, JSW Steel, Bajaj Auto, Hindalco Industries and ONGC were among the top lower on the Nifty. Top gainers were Tech Mahindra, SBI Life Insurance, Eicher Motors, IndusInd Bank and Shree Cements.
All the sectoral indices ended in the red. BSE midcap index fell 0.3 percent, while smallcap ended flat.
Gold Updates:
Gold prices reversed course to trade higher on Thursday as the U.S. dollar eased and yields extended their downward momentum, making non-yielding bullion more appealing to investors.
Yash Gupta Equity Research Associate, Angel Broking:
Real-estate stock gaining momentum on the back of better than expected pre-sales for Q1FY22.
Today, S&P BSE REALTY hits a high of 2890 and now is trading near the 52 weeks high of 2909.9 which was made in March 2021. We have seen some good numbers from Sobha Limited yesterday which were better than the market expectation. The company reported pre-sales growth of 40%.
We have seen a very good 2nd half of FY21 after the sector was adversely hit by the pandemic in 2020. Several companies reported their all-time high results in Q4FY21 on the back of some effects of pent-up demand. It was expected that the demand for 2022 will strengthen this year whereas the ready to move inventory levels have hit 7 years low in Q1FY22, as customer preference has been changed to the ready property rather than the under-construction properties. We expect Residential real-estate to do well in the financial year 2022 as some early signs of the organized sector gaining the market share are encouraging. We have a buy call on Godrej property with a target price of 1700.
Nifty Bank index fell 1 percent dragged by the RBL Bank, SBI, Bandhan Bank, ICICI Bank:
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
The market witnessed a correction after a failed attempt to hold the support level around the Nifty 50 Index level of 15800. Market suggests, 15650 will be an important support level from a short-term perspective. Sustaining above 15650-15670 levels, the market expects to bounce back, and trade in the range of 15650-15900. Technical indicator suggests, a volatile movement in the market in the range of 15650-15900.
BSE Auto index slipped 1 percent dragged by the Tata Motors, Bosch, Motherson Sumi:
Akhil Chaturvedi, Associate Director, Head of Sales & Distribution, Motilal Oswal Asset Management Company:
Investors continue to invest in pure equity schemes resulting in positive net sales of almost Rs 6000 crore, this is slightly lower than last month due to higher redemptions. For now, the trend surely is in favour of Indian Equities by domestic investors. It is particularly very encouraging to witness good amount of interest in dynamic / asset allocations funds with higher gross sales of Rs 4300 crore and net sales of Rs 2300 crore.
The prime objective of the funds in this category is to use valuation models and then dynamically rebalance portfolio between equities and fixed income ensuring better risk-adjusted returns for investors. In current environment, dynamic / asset allocations funds are good option for investors certainly.
Clean Science IPO subscribed 2.87 times:
The public offer of Clean Science, a technology-driven specialty chemical manufacturing company, has seen a strong demand from investors as it got subscribed 2.87 times so far on the second day of bidding, July 8.
Investors have put in bids for 3.52 crore equity shares against the offer size of 1.23 crore equity shares, the subscription data available on the exchanges showed.
GR Infraprojects IPO subscribed 4.2 times on day 2
The public offer of GR Infraprojects continued to witness overwhelming response from investors given the expected infrastructure boost in coming years and attractive valuations compared to peers, as it subscribed 4.20 times on July 8, the second day of bidding.
The offer has received bids for 3.41 crore equity shares against IPO size of 81.23 lakh equity shares, the subscription data available on the exchanges showed.
The retail investors have put in bids 6.25 times their reserved portion and non-institutional investors 4.81 times their portion set aside.
A part set side for qualified institutional buyers has subscribed 51 percent and that of employees 48 percent.
Market at 3 PM
Benchmark indices were trading 1 percent lower dragged by the banking, metal, pharma and auto names.
The Sensex was down 483.90 points or 0.91% at 52570.86, and the Nifty was down 152.70 points or 0.96% at 15727.About 1173 shares have advanced, 1743 shares declined, and 111 shares are unchanged.
Nifty Pharma index fell 1 percent dragged by the Sun Pharma, Dr Reddy's Lab, Cipla
Rupee Updates:
Indian rupeeistradinglower at74.74per dollar, amid selling seen in the domestic equity market.It opened 20 paise lower at 74.81 per dollar against previous close of 74.61.
The Sensex was down 511.61 points or 0.96% at 52543.15, and the Nifty was down 163.10 points or 1.03% at 15716.60.
NIIT and Axis Bank partner to launch a Digital Banking Academy
NIIT Institute of Finance Banking and Insurance (NIIT IFBI) - a subsidiary of NIIT Limited, and Axis Bank have launched a FinTech Professional Programme under the Axis Bank - NIIT Digital Banking Academy. The course is designed to build future ready FinTech Professionals for Axis Bank.
Axis Bank was quoting at Rs 754.05, down Rs 8.60, or 1.13 percent and NIIT was quoting at Rs 290.00, down Rs 0.80, or 0.28 percent on the BSE.
Amber Enterprises set to resume next leg of rally
Amber Enterprises has more than doubled investors’ wealth in the last year compared to the 46 percent run of Nifty50. On a year-to-date basis as well, the stock's 28 percent run-up beat Nifty50's 13 percent gain.
Since hitting a 52-week high in March 2021, the stock entered a consolidation phase. However, technical charts suggest that the stock is now ready to resume the second leg of the rally. Long-term investors can hold onto positions and look for an upside of over 20 percent from current levels, suggest experts.
ICICI Direct on banks
: Q1 FY22 saw the ups and downs of partial lockdowns post a smooth recovery in Q4FY21. RBI again supported by offering extension of ECLGS schemes and government raising the cap to Rs 4.5 lakh crore. With the second wave of the pandemic forcing lockdowns yet again, the road to recovery has been elongated as bank credit offtake has failed to garner momentum and has remained in the range of 5.5-6 percent. However, given muted credit growth, absence of substantial treasury and revival in opex is seen keeping operational performance moderate, profitability is expected to witness a healthy surge led by lower provision compared to the last fiscal. On asset quality, divergence is expected in delinquencies based on loan mix wherein exposure to MSME and MFI segments could remain under pressure with focus on collection efficiency, especially in June 2021 and July 2021.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities:
Crude oil prices traded lower with benchmark NYMEX WTI crude oil prices fell by nearly 1.12% to $71.39 per barrel for the day. MCX Crude oil July futures fell by more than 1% to Rs. 5322 by noon.
Crude oil prices are expected to trade down for the day with resistance at $73 and support at $70 per barrel. MCX Crude oil July has support at Rs 5260 and resistance at Rs 5390.
European markets are trading in the red with FTSE, CAC and DAX down a percent each
Market update:
Sensex is down 510.76 points or 0.96% at 52544.00, and the Nifty fell 163.60 points or 1.03% at 15716.10. Tata Motors, Hindalco Industries and Bajaj Auto are the top losers while Tata Motors, Tata Steel and Just Dial are the most active stocks.
Among the sectors, auto, metals and banks are under pressure while the midcap and smallcap indices are also trading in the red.
Gaurav Garg, Head of Research, CapitalVia Global Research:
In morning trading, Indian equity benchmarks were in the red ahead of the weekly options expiry. Sentiments took a hit when Fitch Ratings decreased India's GDP outlook for the current financial year (FY22) to 10% from 12.8 percent earlier, citing a sluggish recovery following the second wave of COVID-19 as a reason.
Losses remain capped as the domestic agency ICRA anticipated in its report that the banking system's gross non-performing assets (GNPAs) are anticipated to decrease to at least 7.1 percent by March 2022, down from 7.6 percent at the end of FY21. After minutes from the Federal Reserve's most recent meeting mostly supported the market expectations, U.S. Treasuries prices maintained advances on Wednesday, holding down yields, while two stock indexes set new highs. Asian markets were mostly trading with slight negativity despite positive cues from the global market.
We witnessed a slightly negative movement in the market in a small range between 15880-15820. 15780-15800 will be a key support level in the market for a short-term perspective. Technical indicators suggest we can expect a bounce back from 15780-15800. On the sectoral front, there is no clear momentum in any direction. Shree Cements and IndusInd Bank are the top gainers while Tata motors and JSW Steel are the top losers on Nifty.
June MF Data:
The net equity inflow stood at Rs 4,608.7 crore in June 2021 against Rs 9,235 crore of inflow in the previous month. Its ETF inflow was at Rs 3,012.6 crore versus Rs 5,379.8 crore of inflow (MoM).
CARE upgrades long-term issuer rating of JSW Steel to AA from AA-:
CARE Ratings has upgraded the JSW Steel’s issuer rating and rating for long term bank facilities and non-convertible debentures to CARE AA from CARE AA- and kept stable outlook.
It has reaffirmed the ratings for the short term bank facilities and commercial paper at CARE A1+, company said in the release.
JSW Steel was quoting at Rs 675.40, down Rs 14.60, or 2.12 percent on the BSE.
Heena Naik, Research Analyst - Currency, Angel Broking on FOMC meeting minutes
Fed officials talked about reducing asset purchases but also expressed the need for patience.
Minutes reiterated the Fed’s view that while inflation has been rising faster than they expect, they see the current trend as transitory.
Some members noted the faster progress of the economic recovery however conditions have not met the “substantial further progress” benchmark to start tightening policy.
The update failed to impress markets as the indecision over the Fed’s future actions remained on the table amid a light calendar in Asia.
Nifty metal index shed 1 percent dragged by the SAIL, Jindal Steel, Hindalco, Vedanta
Market at 1 PM
Benchmark indices slipped further dragging Nifty below 15750.
The Sensex was down 413.31 points or 0.78% at 52641.45, and the Nifty was down 131.20 points or 0.83% at 15748.50. About 1438 shares have advanced, 1419 shares declined, and 112 shares are unchanged.
Hindalco Industries, Bajaj Auto, JSW Steel, Tata Motors and Sun Pharma were among major losers on the Nifty.
Tech Mahindra, Palo Alto Networks announces MSSP partnership:
Tech Mahindra announced the Managed Security Services Provider (MSSP) partnership with Palo Alto Networks, a global cybersecurity leader. This agreement leads to the expansion of Tech Mahindra’s global partnership with the company to provide a full suite of Managed Security Services.
Tech Mahindra was quoting at Rs 1,049.35, up Rs 3.40, or 0.33 percent on the BSE.
GR Infraprojects IPO subscribed 3.17 times on day 2
The public offer of GR Infraprojects continued to witness overwhelming response from investors given the expected infrastructure boost in coming years and attractive valuations compared to peers, as it subscribed 3.17 times on July 8, the second day of bidding.
The offer has received bids for 2.56 crore equity shares against IPO size of 81.23 lakh equity shares, the subscription data available on the exchanges showed.
Tata Motors Q1 global wholesales data:
The Tata Motors Group global wholesales in Q1 FY22, including Jaguar Land Rover, were at 2,14,250, higher by 134%, as compared to Q1 FY21.
Global wholesales of all Tata Motors’ commercial vehicles and Tata Daewoo range in Q1 FY22 were at 52,470., higher by 355%, over Q1 FY21.
Global wholesales of all passenger vehicles in Q1 FY22 were at 1,61,780, higher by 102% as compared to Q1 FY21.
Tata Motors was quoting at Rs 311.45, down Rs 5.60, or 1.77 percent on the BSE.
Market at 12 PM
Benchmark indices extended the fall and trading at day's low level with Nifty around 15800.
The Sensex was down 222.31 points or 0.42% at 52832.45, and the Nifty was down 72.70 points or 0.46% at 15807. About 1645 shares have advanced, 1160 shares declined, and 126 shares are unchanged.
Top gainers were Shree Cements, IndusInd Bank, NTPC, UltraTech Cement and HDFC, while losers included Bajaj Auto, Tata Motors, Hindalco, JSW Steel and Sun Pharma.
BSE Realty Index up nearly 1 percent led by the Brigade Enterprises, Sobha, Oberoi Realty
Clean Science IPO bought 1.7 times on second day of bidding
The public offer of Clean Science, a technology driven specialty chemical manufacturing company, has seen a strong demand from investors, subscribing 1.7 times so far on the second day of bidding, July 8.
Investors have put in bids for 2.09 crore equity shares against the offer size of 1.23 crore equity shares, the subscription data available on the exchanges showed.
Rupee Updates:
Indian rupee erased early losses and trading at day's high level at 74.66 per dollar, amid selling seen in the domestic equity market.
It opened 20 paise lower at 74.81 per dollar against previous close of 74.61.
Alembic Pharma gets USFDA final approval:
Alembic Pharmaceuticals has received final approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Desipramine Hydrochloride Tablets USP, 10 mg, 25 mg, 50 mg, 75 mg, 100 mg, and 150 mg, as per the company's press release.
Alembic Pharmaceuticals was quoting at Rs 988.65, up Rs 3.15, or 0.32 percent on the BSE.
L&T Infotech completes acquisition of Cuelogic
L&T Infotech has completed the acquisition of 100% shareholding of Cuelogic Technologies on July 7, 2021.
Consequently, Cuelogic is now a wholly owned subsidiary of the company and Cuelogic Technologies Inc., US is now wholly owned step-down subsidiary of the company.
Larsen & Toubro Infotech was quoting at Rs 4,070.90, up Rs 36.40, or 0.90 percent on the BSE.
Cairn Energy seizes Indian govt property in Paris: Report
Cairn Energy said it had effectively seized Indian state-owned properties in Paris, in order to recover the arbitration award in the tax dispute with the country's government. The Edinburgh-based oil producer has secured a French court order to seize 20 Indian government properties, valued at over GBP 20 million, Financial Times has reported. Read more
Market at 11 AM
Benchmark indices were trading lower with selling seen in the metal, pharma, FMCG and auto names.
The Sensex was down 126.35 points or 0.24% at 52928.41, and the Nifty was down 44.40 points or 0.28% at 15835.30. About 1742 shares have advanced, 1021 shares declined, and 110 shares are unchanged.
Brightcom Group share price locked at upper circuit
Brightcom Group share price locked at 5 percent upper circuit on July 8 after company signed a Letter of Intent to acquire a digital marketing services company.
The share touched 52-week high of Rs 30.15.
" .... signed a Letter of Intent (LoI) to acquire a digital marketing services company based out of India with 1100 employees and premium clients such as Netflix, Disney, Bitly, Hulu and The New York Times," company said in the release.
Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors:
As FED minutes were hawkish particularly discussions on tapering, the currencies all fell and dollar was stronger. Rupee is expected to remain in the range of 74.50 to 74.90. Since exporters are already sold at this level they may wait for 75 level to further sell. Importers need to do cash imports at 74.60 level and wait for hedging.
BSE Power index added 1 percent led by the Adani Transmission, Siemens, CESC
PNB Housing Finance share price jumps 5%:
PNB Housing Finance share price jumped 5 percent after Punjab National Bank asked its housing finance arm to restructure Rs 4,000-crore capital infusion deal with Carlyle.
PNB Housing Finance on Wednesday said its promoter Punjab National Bank has asked it to consider restructuring the proposed Rs 4,000 crore capital infusion deal led by US-based Carlyle group.
The housing financier also said it will await the Securities Appellate Tribunal's order on the issue before taking a final decision.
ICICI Direct:
The USDINR pair saw fresh accumulation from lower levels along with the Dollar Index moving to fresh three month’s high indicating a move towards 75 cannot be ruled out.
The dollar-rupee July contract on the NSE was at Rs 74.82 in the last session. The open interest rose 1.5% for the July series.
Rupee Opens:
Indian rupee slipped in the early trade on July 8. It opened 20 paise lower at 74.81 per dollar against previous close of 74.61.
On July 7, the rupee ended marginally lower at 74.61 per dollar against Tuesday's close of 74.55.
Market at 10 AM
Benchmark indices were trading flat with Nifty around 15850.
The Sensex was down 72.82 points or 0.14% at 52981.94, and the Nifty was down 26.30 points or 0.17% at 15853.40. About 1729 shares have advanced, 916 shares declined, and 92 shares are unchanged.
Shree Cements, IndusInd Bank, Titan Company, IOC and Tech Mahindra were among major gainers on the Nifty, while losers were Bajaj Auto, Tata Motors, ONGC, JSW Steel and HUL.
