Despite positive global cues and optimism from declining fresh covid cases, domestic bourses erased its early gains and traded flat owing to weak economic data. While upcoming RBI policy and likely delay in the start of monsoon season bought cautiousness to the momentum.
Indian rupee ended 28 paise lower at 72.90 per dollar, amid volatile trade seen in the domestic equity market.
It opened higher at 72.53 per dollar against previous close of 72.62 and traded in the range of 72.53-72.94.
Indices traded in a range and closed flat even as Corporate India has been announcing capital expenditure plans since the start of the fiscal. Weak PMI data released today did not help sentiments as we saw profit-taking across the metal space today. In the broader market, we saw keen interest in select pockets of textiles & pharma names.
The markets took a bit of a breather today but the overall trend remains bullish. Traders can consider accumulating long positions on dips and mild corrections for higher targets. The Nifty seems poised to achieve 15900-16000 with a good support at 15300.
: After a positive start, benchmark indices erased the intraday gains and ended flat amid volatility on June 1.
At close, the Sensex was down 2.56 pointsat 51934.88, and the Nifty was down 7.90 points or 0.05% at 15574.90. About 1303 shares have advanced, 1782 shares declined, and 119 shares are unchanged.
Adani Ports, ONGC, Bajaj Finance, SBI and Bajaj Auto were among major gainers on the Nifty, while losers included JSW Steel, Tata Steel, UltraTech Cement, ICICI Bank and Grasim Industries.
Buying saw in the Infra, IT and Energy sectors, while bank, auto and metal sectors ended in the red. BSE Smallcap index shed 0.3 percent.
FII's strategy of selling in India and moving to other emerging markets like Taiwan & South Korea from early April to mid-May have been proved to be sub-optimal since India has been outperforming most other emerging markets. That's why FIIs have staged a comeback since mid-May and are buying aggressively in recent days.
Progressive unlocking of the economy is likely to improve the prospects of growth & corporate earnings in FY22. Huge delivery based buying in frontline stocks like RIL, ICICI Bank, ITC etc indicate high appetite for these stocks and FIIs might be buying into them and other high-quality stocks with earnings visibility. This trend may continue.
TVS Motor Company registers sales of 166,889 units in May 2021 as against sales of 58,906 units in the month of May 2020.
TVS Motor Company was quoting at Rs 611.90, down Rs 3.30, or 0.54 percent on the BSE.
TTK Prestige has successfully concluded a long-term settlement covering all its workmen at the manufacturing unit at Karjan, Gujarat. This settlement provides for better productivity, comapny said its release.
TTK Prestige was quoting at Rs 8,792.00, up Rs 123.55, or 1.43 percent on the BSE.
WTI Crude oil prices are likely to trade firms while above the key support level of 20 days EMA of $65.47 and 50 days EMA $63.70 while it may face stiff resistance near $69.71 and $71.90.
Balrampur Chini Mills has posted consolidated net profit at Rs 235.5 crore against Rs 241.4 crore and revenue was down 41.4% at Rs 1,019.4 crore versus Rs 1,740 crore (YoY).
Balrampur Chini Mills was quoting at Rs 304.70, up Rs 0.55, or 0.18 percent on the BSE.
Salasar Techno Engineering has posted net profit at Rs 9.7 crore versus Rs 3.7 crore and revenue was up 94.7% at Rs 211.5 crore versus Rs 108.6 crore (YoY).
Salasar Techno Engineering touched a 52-week high of Rs 722 and was quoting at Rs 714.75, up Rs 27.45, or 3.99 percent.
BOB reported a pick-up in operating profit, led by traction in fee income and recovery from W/O accounts, even as a one-time DTA reversal resulted in losses. Business growth remains subdued, while Retail/Agri continues to witness healthy traction.
On the asset quality front, GNPA/NNPA ratio improved from pro forma GNPA/NNPA ratio as of Dec’20, while International/Corporate book continues to witness higher slippages. Total restructuring stood at 1.3% of loans, with two-third coming from the Corporate portfolio. SMA 1/2 stood ~3.9% of loans, which, coupled with the high unrated/BB & Below pool, keeps us watchful on asset quality. The impact of the second COVID wave could keep credit cost/slippage elevated. We estimate credit cost to stay elevated at 2.1% in FY22E. Maintain neutral stance with a revised target price of Rs 85/share (0.7x FY23E ABV).
