Closing Bell: Nifty above 18,700, Sensex gains 418 pts; all sectors in the green

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas

The Nifty opened gap up today and has closed around the highs of the day. On the daily charts we can observe that the Nifty has resumed its upmove and successfully defended the crucial support zone of 18530 – 18500. On the upside the current upmove can extend till 18800 and beyond that 18889.

The momentum indicator on the daily and hourly time frame is providing divergent signals however price action is suggesting strength. In terms of levels, today’s gap area formed in the range 18630 – 18620 shall act as a crucial support zone while 18778 – 18800 shall act as an immediate hurdle zone.

As far as Bank Nifty is concerned, the index has witnessed buying interest from the support cluster of 44000 which coincided with the lower end of the rising channel and also the 20-day moving average (43980). We expect the Bank Nifty to continue with the positive price action for the next few trading sessions. Short term target is placed at 44500.

Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty rose for the second consecutive session on June 13 aided by positive overnight cues. At close, Nifty was up 0.62% or 114.7 points at 18716.2. Volumes on the NSE were above recent average. Broad market indices rose more than the Nifty even as the advance decline ratio was up at 1.56:1.

Global equities were largely up on Tuesday, taking clue from an upbeat session on Wall Street ahead of key U.S. inflation data that could shape the outlook for Federal Reserve monetary policy. A cut in short-term lending rate for the first time in 10 months by the People's Bank of China (PBOC) helped to prop up risk sentiments.

Nifty rose smartly and closed almost at the intra day high on June 13. It could now face resistance from the 18778-18813 band in the near term while 18634 could offer support.

Prashanth Tapse, Senior VP (Research), Mehta Equities

Markets rallied sharply and mounted bullish bets ahead of the US CPI data, Federal Reserve rate decision and ECB rate decision. If today’s bullish action is any indication, then Nifty's biggest support to watch for Wednesday’s session is placed at 18557 mark. On the upside, the index faces major hurdles at its all-time-high at 18888 mark.

Ajit Mishra, SVP - Technical Research, Religare Broking

Markets edged higher and gained over half a percent, tracking upbeat global cues. After a firm start, the Nifty oscillated in a range while maintaining positive bias and finally settled at 18,716.15 levels. All sectors, barring auto, contributed to the move wherein realty, FMCG and pharma were the top gainers. Besides, the continued outperformance of the broader indices kept the traders busy.

Participants are taking comfort from recovery in the US markets and prevailing buoyancy in midcap & smallcap space however the key is to hold 18,700 in Nifty for further surge else the move would fizzle out again. We recommend maintaining a positive tone but avoid going overboard citing the possibility of a rise in volatility ahead.

Gaurav Bissa, VP - InCred Equities

Nifty opened on a strong note after taking cues from strong global markets. The index tried to pick up momentum as the day progressed but was seen struggling in a consolidated move for the next couple of hours. The second half of the trading session brought fresh momentum to Nifty which was seen crossing 18700 with relative ease and closed near the high point of the day.

The immediate hurdle is seen at 18770 levels which once sustained can push the index towards 19000 levels. Comfortable writing was seen in 18700 and 18600 strike put options suggesting the dips are unlikely to be steep and any fall towards 18600 can see fresh buying in Nifty index.

Bank Nifty continued its struggle around 44150 levels. The index was trading in a range throughout the trading session with some traction seen towards the end of the day. The index has managed to sustain above its 21ema on daily charts which is expected to continue lending support and a close above 44300 can push it towards 45000 levels.

Vinod Nair, Head of Research at Geojit Financial Services

The sustained flow of better-than-expected domestic macro-economic data kept the market mood afloat, with the Nifty midcap trading to all-time highs. The domestic CPI data moderated closer to the RBI’s target due to tone-down in food inflation and a favourable base, which increased the likelihood of a rate cut by the end of the year. Attention now turns to the release of US inflation data and the upcoming FOMC announcement, where the view is optimistic on keeping rates on hold.

Shrikant Chouhan, Head of Research (Retail), Kotak Securities

Markets witnessed a spectacular rally towards the close as bullish bets on realty, metals, and oil & gas stocks aided Sensex to close above the 63000 mark. Moderating inflation and strong IIP growth numbers coupled with expectations that the US Fed could hold interest rates steady in this week's FOMC meeting buoyed the sentiment.

Technically, the Nifty has formed a bullish candle on daily charts, which is largely positive. For bulls, 18600 would act as a sacrosanct support zone. As long as the index is trading above the same, the positive sentiment is likely to continue till 18800-18850. However, below 18600, the uptrend would be vulnerable and traders may prefer to exit from the long positions.

Rupee Close:

Indian rupee closed marginally higher at 82.37 per dollar against previous close of 82.43.

Market Close:

Benchmark indices ended higher for the second consecutive session on June 13 with Nifty above 18,700.

At close, the Sensex was up 418.45 points or 0.67% at 63,143.16, and the Nifty was up 114.70 points or 0.62% at 18,716.20. About 2040 shares advanced, 1446 shares declined, and 126 shares unchanged.

Cipla, Tata Consumer Products, Titan Company, Asian Paints and ITC were among the biggest gainers on the Nifty, while losers included Kotak Mahindra Bank, Adani Enterprises, HCL Technologies, M&M and Adani Ports.

All the sectoral indices ended in the green with realty up 3 percent, while FMCG, pharma, metal and PSU Bank up 1 percent each.

The BSE midcap index rose 1 percent and smallcap index added 0.8 percent.

Zydus receives final approval from the USFDA for Diclofenac Sodium and Misoprostol Delayed Release Tablet

Zydus Lifesciences has received final approval from the United States Food and Drug Administration (USFDA) to manufacture and market Diclofenac Sodium and Misoprostol Delayed Release Tablets USP, 50mg/200 mcg and 75mg/200 mcg.

CLSA View On Hero MotoCorp

-Downgrade to sell rating, target at Rs 2,708 per share
-Successful implementation of strategy & recovery in entry segment remain key
-Aggressive plans in premium segment but competitive intensity is high
-Believe market share gains will remain a challenge due to high competitive intensity
-Expect company’s volumes to grow slower than industry

Expect Rupee to trade with a slight positive bias: Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas. 

Indian Rupee appreciated by 8 paise today as inflation fell to a 25-month low. CPI inflation declined to 4.25% in May 2023 as compared to 4.7% in April 2023. Industrial production also rose unexpectedly by 4.2% in April 2023 as compared to 1.7% in the previous month. The weak US Dollar and positive domestic markets also supported Rupee. However, FII outflows capped sharp gains. U.S. Dollar declined on rising expectations of a pause in a rate hike in the June FOMC meeting. The surge in Euro and Pound also weighed on the Dollar.

We expect Rupee to trade with a slight positive bias on improved global risk sentiments and a weak greenback. A weak tone in crude oil prices may also support the local currency. Traders may remain cautious ahead of inflation data from the US. Market participants may also remain cautious ahead of the US FOMC meeting outcome later this week. We expect the USDINR spot to trade between 82 to 82.70 in the near term

Market at 3 PM

The Sensex was up 388.96 points or 0.62% at 63,113.67, and the Nifty was up 110.00 points or 0.59% at 18,711.50. About 1931 shares advanced, 1384 shares declined, and 104 shares unchanged.

Morgan Stanley View On Tata Motors

-Overweight rating, target at Rs 617 per share
-JLR's business appears to be moving on the right track
-FCF turn, ‘house of brands’ strategy should support sustainable turnaround for JLR
-Tata-supported EV transition should support a sustainable turnaround for JLR

Nomura view On Hero MotoCorp

Zydus Lifesciences gets final US FDA nod for Varenicline Tablets  

Zee shares sharply off lows, but speculation continues over company's merger with Sony

Zee Entertainment Enterprises Ltd (ZEEL) shares have come sharply offfrom their early losses. The shares which slipped to day's low of Rs 182 recovered to Rs 192.6 per sharein noon deals after the Securities and Exchange Board of India (Sebi) barred promoters Subhash Chandra and Punit Goenka from holding any directorial or key managerial roles in the company.

Sebi has also initiated a detailed investigation into the matter. ZEEL has been instructed to present the Sebi order before its board within seven days from date of the receipt of the orders.

Additionally, Sebi has given Chandra and Goenka a 21-day period to file their replies or objections, if any, in the case. If the Zee-Sony merger encounters difficulties, there could be potential implications. According to a note from brokerage firm CITI, the proposed merger with Culver Max Entertainment (formerly Sony Pictures Network) is the most significant stock driver. Click to read more..

Granules India gains 2% after USFDA nod to BP drug

Shares of Granules India Ltd gained 2 percent intraday on June 13 after the United States Food and Drug Administration (USFDA) approved the pharma firm's Abbreviated New Drug Application (ANDA) for metoprolol succinate extended-release tablets.

The drug is used for treating hypertension and commanded sales of around $321 million till March 2023, according to IQVIA/IMS Health.

The Hyderabad-based company manufactures active pharmaceutical ingredients (APIs), pharmaceutical formulation intermediaries (PFIs) as well as finished dosages. It has 57 ANDA approvals from the USFDA, including two tentative approvals, the pharma company said. Read More...

European stock were trading higher as investors braced for the latest meeting of the U.S. Federal Reserve, which begins Tuesday.

Market at 2 PM

The Sensex was up 313.83 points or 0.50 percentat 63,038.54, and the Nifty was up 91.20 points or 0.49percentat 18,692.70. About 1,923 shares advanced, 1,365 shares declined, and 103 shares were unchanged.

IKIO Lighting IPO share allotment expected today

LED lighting solutions provider IKIO Lighting is going to finalise the share allotment on June 13, after closing its maiden public issue last week. The participants in the offer can check their allotment status either on the BSE website or on the portal of IPO registrar

Bond Yields Update

Hot UK labour market raises pressure on BoE to act again

Britain's labour market outperformed even the highest expectations of economists polled by Reuters in data on Tuesday, piling pressure on the Bank of England to raise interest rates again in the face of unrelenting price pressures.

Employment and wage growth soared during the three months to April while the unemployment rate fell, according to the Office for National Statistics.

Sterling shot up by around a third of a cent against the dollar to $1.255 in response to the data, which RBC bank said was "unambiguously strong".

Annual growth in wages excluding bonuses rose to 7.2% during the three months to April, up from 6.8% in the three months to March.

Employment rose by 250,000 in the three months to April, against the Reuters poll forecast for a 162,000 increase.

BSE Midcap index up nearly 1 percent led by Oracle Financial Services Software, Laurus Labs, Gland Pharma

Adani Ports suspends vessel operations at Mundra & Tuna Port

Adani Ports and Special Economic Zone has suspended its vessel operations at Mundra & Tuna Port. The suspension of vessel operations is being done in view of an advisory issued by India Metrological Department on expected cyclone storm 'Biparjoy'.

BSE Realty index up 1 percent supported by Indiabulls Real Estate, Macrotech Developers, Godrej Properties

Satin Creditcare Network to consider fund raising on June 15

Satin Creditcare Network's board will meet on June 15 to consider the fund raising via issuance of listed/unlisted, secured/unsecured, non-convertible debentures on private placement basis.

L&T bags order worth Rs 1,000 -2,500 crore for its Hydrocarbon business

The Hydrocarbon business of Larsen & Toubro (L&T), has secured an offshore project from a prestigious overseas client.

The scope of work comprises Engineering, Procurement, Construction & Installation for new offshore structures.

Larsen & Toubro was quoting at Rs 2,350.15, up Rs 10.75, or 0.46 percent.

Bernstein View On Reliance Industries

Outperform rating, target at Rs 3,040 per share
Clean energy represents new growth pillar with USD 2 trillion investment in India through 2050
Clean energy could have a TAM of $30 billion in 2030 versus $10 billion currently
By 2050, estimates TAM could reach $200 billion & cumulative spending of $2 trillion
Believe clean energy biz is worth Rs 200 per share with plenty of scope for expansion
O2C continues to take benefit from low cost Russian crude feedstock
Product prices remain strong

Reliance Industries was quoting at Rs 2,513.50, up Rs 30.40, or 1.22 percent.

Bernstein On Gland Pharma 

Outperform rating, target at Rs 1,702 per share
Top molecules tracker, stable to small gains in share
For most of top 10 molecules, see partner mkt shares recovering from a trough
Daptomycin, Micafungin & Enoxaparin have improved mkt shares in recent months
Vancomycin shares have been declining slightly
Heparin shares seem to have stabilised & will depend on supply issue resolution
Cisatracurium & Ziprasidone shares are also inching up slowly
Levothyroxine, Palonosetron & Ketorolac shares are coming back up again

Subhash Chandra & Punit Goenka move SAT against SEBI’s order, quoting sources, reported CNBC-TV18.

Morgan Stanley View On Hero MotoCorp

-Underweight rating, target at Rs 2,344 per share
-Company is expanding the mass market category & fortifying its brands
-Company is upgrading consumer experience, accelerating non-motorcycle revenues
-In EV segment, company aims to scale 2-wheelers, Vida V1 Pro
-Company has planned expansion into 100+ cities by FY24 end

UCO Bank increases overnight lending rate by 5 bps to 7.9%

UCO Bank has increased overnight, one-month and one-year lending rates by 5 bps each to 7.90% from 7.85%, to 8.10% from 8.05%, and to 8.65% from 8.60%, but kept 3-month & 6-month lending rates unchanged at 8.25% & 8.50%, respectively.

UCO Bank was quoting at Rs 26.90, up Rs 0.03, or 0.11 percent.

Trent shares surge 5% on aggressive expansion plans

Shares of Trent surged 5 percent on June 13 to hit a 52-week high of Rs 1,675 after the company announced its strong expansion plans at its Annual General Meeting.

The highlight of its meeting however, was the company's robust guidance for an addition of 200 stores for Zudio in FY24, a number higher-than anticipated by most brokerages. Other highlights from the AGM included a guidance of 30 store additions for Westside, target to add 10 Samoh stores in FY24, and a gross capital expenditure plan of Rs 800 crore for the current fiscal. Adding to that, the company is also contemplating an expansion to international markets.

Market Updates:

The Sensex was up 359.15 points or 0.57% at 63,083.86, and the Nifty was up 103.00 points or 0.55% at 18,704.50. About 2068 shares advanced, 1152 shares declined, and 120 shares unchanged.

Granules India gets ANDA approval for Metoprolol Succinate ER tablets

Granules India announced that the US Food & Drug Administration (US FDA) has approved its Abbreviated New Drug Application (ANDA) for Metoprolol Succinate Extended-Release Tablets USP, 25 mg, 50 mg, 100 mg and 200 mg. It is bioequivalent to the reference listed drug product (RLD), Toprol-XL Tablets, 25 mg, 50 mg, 100 mg and 200 mg, of Toprol Acquisition LLC.

Punjab & Sind Bank gets board approval for raising capital upto Rs 750 crore

Punjab & Sind Bank has received board approval for raising of capital up to Rs 750 crore through issuance of Basel-III compliant additional Tier-1 bonds or Tier-II Bonds in one or more tranches within a period of 12 months.

Punjab & Sind Bank was quoting at Rs 32.25, up Rs 0.28, or 0.88 percent.

BSE Information Technology index up 0.5 percent led by Tanla Platforms, #3i Infotech, Brightcom Group

Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas

Spot gold is currently trading with a gain of 0.30% at USD 1961 as the counter takes its clues from the dollar index, risk sentiments and yields. Yesterday, the metal fell 0.16% to USD 1956.92 as traders turn cautious ahead of the US CPI data to be released today. Two-year US yields at 4.585% were down 0.68% as the US Dollar Index at 103.58 was up 0.04%. Presently, two-year yields are down over 1%.

Apart from the US CPI inflation data for May, market participants look forward to UK employment and German CPI data, too, which are to be released today.

A blowout or underwhelming CPI data may move the yellow metal significantly, though tomorrow's US FOMC monetary policy decision may keep the metal rally capped at USD 1990 and provide a floor in the USD 1920-USD 1930 zone. Interim resistance is at USD 1975, while Interim support is at USD 1950.