Ajit Mishra, VP - Research, Religare Broking:
Markets inched marginally higher in continuation to Thursday’s rise and settled around the day’s high. After opening on a positive note, the benchmark witnessed profit taking and turned flat in no time. However, healthy buying in banking, metals and auto stocks supported the markets to regain some strength as the session progressed. Consequently, the Nifty closed at 15,860 levels, up by 0.4%. The broader markets too ended higher in the range of 0.5-1.1%. On the sector front, all indices ended in positive, except for FMCG and Energy.
The benchmark is hovering near a record high largely led by a gradual pickup in economic activities, as states start unlocking, the expectation of better earnings and ramp-up of vaccination. On the flip side, the possibility of the third wave of Covid can impact market sentiments. We remain cautiously optimistic on the markets and suggest aligning the positions accordingly.
Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS
Tracking positive cues from the global markets, Indian markets traded on a firm note today, with Nifty inching back near its life-time high that was registered last week. Barring FMCG and energy stocks, most sectors traded in green today, led by strength amongst the metal and banking space.
After nearly one month of consolidation, Bank Nifty showed renewed strength today. The index broke out of an inverse Head and Shoulder pattern on the hourly time frame. This is a bullish pattern that indicates an up move. Currently, Bank Nifty is trading near its immediate resistance of 35350. If it sustains above this next week, we could see the index rising towards the 36400-36800 zone soon.
India Ratings cuts GDP growth forecast to 9.6 percent for FY22
India Ratings & Research on June 25 cut its forecast for India's gross domestic product (GDP) growth in 2021-22 to 9.6 percent from 10.1 percent earlier due to the outbreak of the second wave of COVID-19.
Adding, the growth in India's GDP may further fall to 9.1 percent if the country's vaccination drive is delayed by around three months and the country's entire adult population is not vaccinated by the end of the year.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
The market witnessed some recovery from the support of 15800. Market suggests, trading above 15800 is positive from a short-term perspective. If the market breached the resistance zone of 15900-15920 and sustain above these resistance zone, the market expects to gain momentum, leading to an upside projection till 16100-16200 level. The momentum indicators like RSI, MACD to further strengthen in favor of a positive outlook.
Rupee Close:
Indian rupee endedflatat 74.18per dollar, amid buyingsawin the domestic equity market.
It opened flat at 74.14 per dollar against Thursday's close of 74.16 and traded in the range of 74.13-74.24.
Market Close:
Benchmark indices ended higher for the second consecutive day on June 25 supported by metal and financials.
The Sensex was up 226.04 points or 0.43% at 52925.04, and the Nifty was up 69.90 points or 0.44% at 15860.40. About 1737 shares have advanced, 1393 shares declined, and 142 shares are unchanged.
Tata Steel, Axis Bank, SBI, ICICI Bank and Hindalco Industries were among major gainers on the Nifty, while top losers included Reliance Industries, Titan Company, NTPC, HUL and Asian Paints.
On the sectoral front, Nifty Bank, metal and PSU Bank indices added 1-2.5 percent, while BSE midcap index added 1 percent.
Hemant Kanawala, Head – Equity, Kotak Mahindra Life Insurance:
Last 2 months have been very challenging for India due to wave 2 of covid infection and lockdowns announced by state governments to control the spread of infection. On the positive note, Covid infection in India in terms of new cases, active cases and mortality has come down sharply over last 1 month. There has been dramatic improvement in the vaccination rate lately and till date, India has administered 30 crore doses of covid vaccination.
As the pace of vaccination improves over the next quarter, there is an increased probability of complete opening up of the economy into the festive season. Another positive news for the economy is the prediction of normal monsoon by Indian Met department, which should greatly help rural India where the impact of wave 2 of covid infection has been more than wave 1. Increase in vaccination rate and normal monsoon should support strong economic growth in 2nd half of FY22.
Nifty 50 is trading at more than 20 times 1 year forward earnings, which is close to historic high and supported by low interest rates in India and globally. Last week, US Fed has started discussing path for reducing liquidity support, which it has been providing for last 1 year to stimulate growth. As and when they announce their roadmap, it can bring volatility in risk assets including emerging markets and India.
Nifty PSU Bank index added nearly 3 percent led by the Central Bank of India, IOB, Bank of Baroda
Abhishek Bansal, Founder Chairman, Abans Group
Silver is currently trading near $26.285, sharply high from Monday’s low of $25.580. Weakness in the US dollar index is likely to support precious metals prices. The dollar index is currently trading near 91.74 which is sharply lower from a high of 92.395 registered on June 18.
However, weaker than expected US economic data is likely to keep a cap on Silver prices.
Silver prices are likely to find immediate support near $25.67 and $25.10 while immediate resistance is seen around 20 days EMA at $26.87 and 50 days EMA at $27.017
Parag Milk Foods Q4:
The company has posted net loss at Rs 9.6 crore in Q4FY21 versus Rs 10.1 crore in a year ago period. Revenue was down 18.8% at Rs 434.3 crore versus Rs 535.2 crore.
Parag Milk Foods was quoting at Rs 135.75, down Rs 1.80, or 1.31 percent on the BSE.
Market at 3 PM
Benchmark indices extended the gains in the final hour of the trading with Nifty around 15850.
The Sensex was up 254.41 points or 0.48% at 52953.41, and the Nifty was up 76.00 points or 0.48% at 15866.50. About 1644 shares have advanced, 1284 shares declined, and 108 shares are unchanged
Tata Steel, Axis Bank, SBI, ICICI Bank and Hindalco Industries were among major gainers on the Nifty, while top losers included Reliance Industries, Titan Company, NTPC, HUL and Asian Paints.
Rupee Updates:
Indian rupee is trading marginally lower at 74.21 per dollar, amid buying seen in the domestic equity market.
It opened flat at 74.14 per dollar against Thursday's close of 74.16.
Yash Gupta Equity Research Associate, Angel Broking
India Pesticides Limited’s IPO is getting good response from investors.Company has already received good response from anchor investors, raising Rs 240 crores from anchor investors.
If we look at the listing gain opportunity in this IPO, we expect a gains of around 10%-20% as the company is fundamentally strong and available at better valuation than its peers. We have assigned a “Subscribe” rating to India Pesticides Limited’s IPO.
KCP Q4
: Net profit came in at Rs 89.6 crore against Rs 34.7 crore (YoY). Revenue jumped 51.3 percent at Rs 531.5 crore against Rs 351.3 crore (YoY). EBITDA rose 98.3 percent at Rs 137.4 crore against Rs 69.3 crore (YoY). EBITDA margin at 25.9 percent against 19.7 percent (YoY).
European markets are trading flat with FTSE up marginally in the green
PNC Infratech Q4
: Net profit jumped 66.4 percent at Rs 150.4 crore against Rs 90.4 crore (YoY). Revenue was up 38.4 percent at Rs 1,864.3 crore against Rs 1,346.7 crore (YoY). EBITDA jumped 42.4 percent at Rs 420 crore against Rs 295 crore (YoY). EBITDA margin at 22.5 percent against 21.9 percent (YoY). Tax expense at Rs 101 crore against Rs 42.4 crore (YoY).
Godfrey Phillips Q4
Net profit at Rs 95.2 crore against Rs 38.7 crore (YoY). Revenue was up 17.5 percent at Rs 705.9 crore against Rs 600.8 crore (YoY). EBITDA jumped 76.3 percent at Rs 156.7 crore against Rs 88.9 crore (YoY) while EBITDA margin was at 22.2 percent against 14.8 percent (YoY). Other income at Rs 17.7 crore against Rs 30.4 crore (YoY). Tax expenses at Rs 30.6 crore against Rs 16.9 crore (YoY). The company board has declared dividend of Rs 24 per share.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities
: Crude oil prices traded higher with benchmark NYMEX WTI crude oil prices were trading up by 0.25% at $73.49 per barrel for the day. MCX Crude oil July futures were up by 0.42% at Rs 5460 by noon.
Crude oil prices are expected to trade sideways to up for the day with resistance at $74 and support at $72 per barrel. MCX Crude oil July has support at Rs 5380 and resistance at Rs 5520.
Indraprastha Gas Q4:
Net Profit was down 1.2 percent at Rs 331 crore against Rs 334.9 crore (QoQ). Revenue was up 7.2 percent at Rs 1,550.6 crore against Rs 1,446.2 crore (QoQ). EBITDA was down 1.8 percent at Rs 491.7 crore against Rs 500.7 crore (QoQ). EBITDA margin at 31.7 percent against 34.6 percent (QoQ).
Market update
: Indices are trading at day's high with Sensex up 253.89 points or 0.48% at 52952.89, and the Nifty adding 75.30 points or 0.48% at 15865.80. Tata Steel, Axis Bank and State Bank of India are the top gainers while Titan COmpany and Reliance Industries dragged the most.
Among the sectors, the metal and PSU bank index gained over 2 percent each while the midcap and smallcap indices are also trading in the green.
Moody's affirms IDBI Bank's deposit ratings:
Moody's affirms IDBI Bank's deposit ratings, upgrades baseline credit assessment. It also upgrades IDBI's baseline credit assessment to b1 from b2. The stock was trading at Rs 38.40, down Rs 0.45, or 1.16 percent. It has touched an intraday high of Rs 38.95 and an intraday low of Rs 38.20.
India Pesticides IPO subscribed 5.96 times:
The initial public offering (IPO) of India Pesticides, one of India's leading agro-chemical manufacturers, had been subscribed 5.96 times by the morning of June 25, the final day of bidding. Investors had bid for 11.5 crore equity shares against the IPO size of 1.93 crore shares, the subscription data available on exchanges showed.
The portion reserved for qualified institutional investors has been subscribed 3.24 times and that of non-institutional investors 3.38 times. Retail investors have put in bids 8.62 times their reserved portion.
Mukand shares locked in upper circuit
Mukand share price was locked in 5 percent upper circuit on June 25 after the company executed a memorandum of undertsanding to sell 47 acre land at Thane.
"We have executed a Memorandum of Understanding (MoU) on June 25, 2021 for the sale of freehold land of the company admeasuring approximately 47 acres situated at Kalwe and Dighe, in Thane district for a consideration of Rs 752.11 crore and have received an initial advance of Rs 10 crore," the company said in its release.
Gaurav Garg, Head of Research, CapitalVia Global Research:
The market is trading with a small positivity with support of 15800. 15800 will be an important support zone for the market to stay positive in the short term. If the market breaches and sustain above the level of 15900, we can expect the market to trade till 16200-16300. On the sectoral front most of the sectors are trading in the positive zone, while Energy and Oil & Gas sector have shown weakness. Tata Steel and JSW steel are the top gainers while Reliance and HUL are the top losers on Nifty.
Market at 1 PM
Benchmark indices extended the gains and trading at day's high level with Nifty around 15850
The Sensex was up 193.43 points or 0.37% at 52892.43, and the Nifty was up 61.30 points or 0.39% at 15851.80. About 1688 shares have advanced, 1170 shares declined, and 119 shares are unchanged.
Except energy and FMCG all other sectoral indices were trading in the green.
GMR Infra denies stake sale buzz of Indonesia mine
GMR Infrastructure clarified on the news with captioned GMR Infrastructure to sell stake in Indonesia mine to raise $400 million.
We state that at this point in time, no such proposal as appearing in the news article have been considered or approved by the board, said GMR Infrastructure in its release.
We hereby state that we constantly evaluate various options for creating long term value for the shareholders. As and when such proposals are considered and approved by the Board, we notify the Stock Exchanges with all relevant details as required, it added.
GMR Infrastructure was quoting at Rs 32, up Rs 0.25, or 0.79 percent on the BSE.
BSE Midcap index added over 1 percent
India Pesticides IPO subscribed 5.26 times
The initial public offering (IPO) of India Pesticides, one of India's leading agro-chemical manufacturers, had been subscribed 5.26 times by the morning of June 25, the final day of bidding. Investors had bid for 10.16 crore equity shares against the IPO size of 1.93 crore shares, the subscription data available on exchanges showed.
The IPO size was reduced to 1.93 crore shares after the company raised Rs 240 crore from anchor investors on June 22, a day before the issue opened.
The portion reserved for qualified institutional investors has been subscribed 2.38 times and that of non-institutional investors 2.51 times. Retail investors have put in bids 8.09 times their reserved portion.
Global shares near record on U.S. infrastructure bill
Asian shares rose on Friday and a gauge of global equities edged closer to record highs after U.S. President Joe Biden embraced a bipartisan Senate infrastructure deal, raising hopes for an extended rebound in the world’s largest economy.
Investors have been looking to an infrastructure agreement to extend the U.S. recovery after massive fiscal stimulus helped the U.S. economy grow at a 6.4% annualized rate in the first quarter. The plan is valued at $1.2 trillion over eight years, $579 billion of which is new spending.
Futures pointed to a higher open for share markets in Europe. Pan-region Euro Stoxx 50 futures added 0.18, DAX futures rose 0.16% and France’s CAC 40 futures were up 0.17%. FTSE futures edged 0.03% higher.
CLSA on Reliance Industries post AGM
Broking house kept outperform rating with a target of Rs 2,250. The company exhibited hopes of closing the O2C stake sale with Aramco this year. The clarity on the new energy foray is useful. Any big take-up of new smartphones to be an important trigger, while progress in omni-channel retail will also be an important trigger.
Market at 12 PM
Indian benchmark indices were trading with marginal gains amid volatility with Nifty above 15800.
The Sensex was up 80.04 points or 0.15% at 52779.04, and the Nifty was up 34.90 points or 0.22% at 15825.40. About 1632 shares have advanced, 1190 shares declined, and 106 shares are unchanged.
Reliance Industries, HUL, Asian Paints, UPL and Titan Company were among major losers on the Nifty, while gainers included Tata Steel, JSW Steel, Hindalco, SBI and Axis Bank.
Dollar Updates:
The dollar drifted lower in Asia on Friday as an agreement on U.S. infrastructure spending underpinned appetite for riskier currencies, but caution ahead of key U.S. inflation data kept losses to a minimum.
Satia Industries bags order of Rs 700 million from Maharashtra govt
Satia Industries has been awarded an order worth Rs 700 million from Maharashtra state textbook bureau for supply of 7000 MT paper at a very good realization. The said order execution has already started and will be completed in Q2FY22, company said in the release.
Satia Industries was quoting at Rs 91.45, down Rs 1.40, or 1.51 percent on the BSE.
BSE Healthcare index added over 1 percent supported by the Laurus Labs, Apollo Hospitals, Thyrocare Technologies
Zydus Cadila receives tentative USFDA approval
Zydus Cadila has received tentative approval from the USFDA to market Pemetrexed for Injection in the strengths of 100mg/vial, 500 mg/vial, and 1000 mg/vial, single-dose vials (US RLD: Alimta). Pemetrexed is used to treat certain types of cancers such as lung cancer, mesothelioma. It is a chemotherapy drug that works by slowing or stopping the growth of cancer cells, company said in the release.
At 11:24 hrs Cadila Healthcare was quoting at Rs 629.80, up Rs 12.10, or 1.96 percent on the BSE.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
During normal times markets would be subject to sharp corrections when valuations are high. Such corrections remove excesses and make markets healthy. Therefore, periodic corrections in a bull market are desirable. But corrections need not happen when they are desirable. Market springs surprises. This resilient bullish trend has surprised even the market gurus. So, investors should remain invested, particularly in quality large-caps which are attracting investment even at high valuations.
RIL's big push for a transformational clean energy ecosystem that will "transform India from a major importer of fossil fuels to an exporter of clean energy" is a potential game-changing strategy. RIL's vision to make clean energy a truly global business is good news not only for the planet but for shareholders too.
Rupee Updates:
Indian rupee is trading flat at 74.17 per dollar, amid volatility seen in the domestic equity market.It opened flat at 74.14 per dollar against Thursday's close of 74.16.
Buzzing:
Ashok Leyland share price added 9 percent on June 25 after the company turned profitable in Q4FY21. The company posted standalone net profit at Rs 241.1 crore in the fourth quarter of FY21 against a loss of Rs 57.3 crore in the year-ago period.
Its standalone revenue was up 82 percent at Rs 7,000.5 crore versus Rs 3,838.5 crore in the year-ago quarter.
Earnings before interest, tax, depreciation and amortization (EBITDA) were at Rs 533.7 crore and the margin expanded to 7.6 percent from 4.7 percent (YoY)
Milan Desai, Lead Equity Analyst, Angel Broking
Ashok Leyland has reported a good set of numbers for Q4FY21. The top-tine grew by 82%/45% YoY/QoQ to Rs 7,000 crore against estimates of Rs 6,200 crore. EBITDA grew by 192%/110% YoY/QoQ to Rs 534 crore ahead of our estimate of Rs 380 crore and EBITDA margins expanded by 286bps/236bps YoY/QoQ despite negative RM pressures (up 581bps/248bps YoY/QoQ) owing to operating leverage benefits.
Adjusted PAT came in at Rs 213 crore against our estimate of Rs 115 crore. We maintain our positive view on the stock considering rebound in CV sales due to full opening up of the economy.
Market update
: Sensex is up 0.32 points at 52699.32, and the Nifty added 13.20 points or 0.08% at 15803.70. Tata Steel, Tech Mahindra and Tata Motors are the top gainers while Tata Steel, Reliance Industries and TCS are the most active stocks.
Among the sectors, the metal index jumped over 2 percent while the midcap and smallcap indices are also trading in the green.
Shilpa Medicare gets in-principle nod from DRDO
Shilpa Medicare received an in-principle approval from Defence Research & Development Organisation (DRDO) to manufacture and sale of 2-Deoxy-D-Glucose (2DG). 2DG has been given emergency approval by the Drug Controller General of India (DCGI) for COVID-19 patients in the country.The stock was trading at
India to have entered into similar arrangement with DRDO. The stock was trading at Rs 570.00, up Rs 19.20, or 3.49 percent. It has touched an intraday high of Rs 580.00 and an intraday low of Rs 545.90.
BSE Oil & Gas index slipped 1 percent dragged by the Adani Total Gas, Reliance Industries, Gujarat Gas
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments:
The Nifty has been showing signs of exhaustion for a couple of days. As of now, the bias remains on the upside and the index can still achieve 16100 as a potential target. Strong support lies at 15400 and until that does not break, any corrective wave can be utilized to accumulate long positions.
