Deepak Jasani, Head of Retail Research, HDFC Securities:
Nifty recovered from morning losses on June 28 following the positive global cues. At close, Nifty was up 0.11% or 18.2 at 15,850.2.
Among sectors, Oil & Gas, Metals and Auto indices rose the most while Consumer Durables and Telecom indices lost the most.
Asian stocks opened weak but inched up through the day. Global stocks rose on Tuesday inspite of higher crude prices as China softened its strict Covid protocols, easing investor concerns about global growth.
Nifty ended in positive after a day of struggle. The upgap on daily charts made on June 28 was filled intraday and hence this bullishness was offset to an extent. A breach of 15,927 is necessary to build on further gains. On falls 15,619 can offer support.
Rupak De, Senior Technical Analyst at LKP Securities:
Nifty remained volatile during the day before closing with a green candle formation. On the lower end, 15650-15700 has remained support for the near term.
The momentum indicator RSI is in bullish crossover and rising. The trend looks positive as long as it sustains above 15650. On the higher end, 15900-16000 may continue to act as resistance.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Markets witnessed a roller coaster ride in intra-day trades, but selective buying in IT, metal, auto and oil & gas stocks helped key benchmark indices recover at fag end to log modest gains. Early upturn in European markets and recovery in other Asian gauges also provided an impetus to local markets.
Technically, after an early morning sell off, the Nifty took support near 15700 and bounced back sharply towards later stages. It has also formed a small bullish candle on daily charts.
We are of the view that as long as the index is trading above 15750 the uptrend formation is intact. Above which the index could move up to 15950-16000 levels. On the flip side, a fresh round of selling is possible if the index succeeds to trade below 15750. Below which, it could retest the level of 15700-15650.
Vinod Nair, Head of Research at Geojit Financial Services:
After a gap down opening, domestic indices were lifted by positive global peers while oil prices rose over renewed supply concerns.
The weakened rupee and rising bond yield limited domestic investors’ risk appetite. Gains in commodity-linked stocks and optimism over easing Covid restrictions in China aided the global up-move.
Vinod Nair, Head of Research at Geojit Financial Services:
Upstream companies are currently benefited by higher spot prices of oil, leading to strong earnings, while refiners are benefited from higher GRMs. This trend is expected to continue in FY23, as OPEC will continue to maintain its current production levels.
Going ahead, if oil prices remain elevated, the oil marketing companies (OMCs) will be impacted by higher under-recoveries unless we have a calibrated hike in retail fuel prices.
We remain positive on upstream companies in the short term but over the medium to long term, we expect oil prices to correct as the supply constraints and geopolitical tensions relieve. Given higher volatility in earnings, overall, we have a neutral view on the sector.
S Ranganathan, Head of Research at LKP securities:
While the confluence of factors like War, Oil and Currency strength of India tempted FII’s to book profits on the back of premium valuations relative to its peers, the narrative could likely change if any of the above factors were to alter going forward.
As the rupee hit fresh lows today, we did see selective buying interest in exporting companies as smart investors begin bargain hunting by putting global macro worries behind.
In a rather range-bound trading session today as deliberations of the GST council gets underway, Autos displayed strength yet again on the back of new launches ahead of their monthly numbers.
Rupee Close
Indian rupee ended at fresh record closing low at 78.78 on Tuesday against Monday's close of 78.34.
Market Close
Benchmark indices ended on flat note in the volatile session on June 28.
At close, the Sensex was up 16.17 points or 0.03% at 53,177.45, and the Nifty was up 18.20 points or 0.11% at 15,850.20. About 1737 shares have advanced, 1460 shares declined, and 139 shares are unchanged.
ONGC, Hindalco Industries, M&M, Coal India and HDFC Life were among the top Nifty gainers. The losers were Titan Company, Asian Paints, Bajaj Finserv, Divis Labs and Adani Ports.
Among sectors, Auto, Metal, and Oil & gas indices rose 1-2 percent, while some selling was seen in the financial names.
BSE midcap and smallcap indices ended flat.
Vinod Nair, Head of Research at Geojit Financial Services:
The buyback will provide an edge to the performance of the stock price of Bajaj Auto, in the industry, due to enhancement in quantitative & qualitative factors.
Daily delivery will increase and fundamentally earnings will improve by a minimum 1% to a maximum 2% for FY23. Since it is an open market transaction, the immediate benefits to the stock price will depend on the trend of buyback offer and market condition. But, at CMP, the stock is trading at 18.5x on a 1yr forward., which is in line with the 3yr and 5yr historical average.
Henceforward, we can presume an improvement in the valuation to above the average during short to medium-term. We are also positive in the long-term due to pick up in domestic economic activities, strong road map for electric scooter and robust financial metrics like strong balance sheet and improvement in future earnings supported by the decrease in raw material prices.
CLSA View On Voltas:
Brokerage firm CLSA has kept sell rating on Voltas and cut the target price to Rs 930 from Rs 1,000 per share.
FY22 RoCE/RoE fell to 11%/9.6%, its lowest in a decade and FCF generation at Rs 15 per share with conversion (FCF/Profit) at 1x.
It will be a tall task for it to reach its previous peak & maintain its margin.
CLSA see further downside given competitive intensity in high input price environment, reported CNBC-TV18.
Voltas was quoting at Rs 976.35, down Rs 5.90, or 0.60 percent on the BSE.
Arijit Malakar, Head of Research - Retail, Ashika Group:
The launch of Scorpio N would be a disruptor in the SUV segment that will help M&M in gaining its market share in SUV pace. This new launch would appeal to buyers in the midsize SUV and higher segments.
Scorpio N is expected to compete with the Hyundai Creta, Kia, Volkswagen Taigun and other SUV brands. M&M for the past few years has been striving to gain its lost market share in the SUV segment by launching XUV700 and Thar. Both the products have helped the company come back in the growth in terms of volume and profitability.
The company's previous SUV launches failed to live up the expectation and M&M witnessed its market share in SUV shrunk from 55% in FY12 to 19% in FY22. However, a series of new upgraded launches, easing of semiconductor shortage and expectation of good monsoon in 2022 would lift up the demand for its cars.
Allied Blenders and Distillers files DRHP for Rs 2000 crore IPO
Mumbai-based Allied Blenders and Distillers, the largest Indian-owned Indian-made foreign liquor (IMFL) company and the third largest IMFL company in India, in terms of annual sales volumes between Fiscal 2014 and Fiscal 2021 has filed its Draft Red Herring Prospectus (DRHP) with the markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).
The issue with a face value of Rs 2 per equity share consists of a fresh issue of equity shares worth up to Rs 1000 crore and an offer-for-sale (OFS) of Rs 1000 crore by Promoter and selling shareholders i.e Bina Kishore Chhabria up to Rs 500 crore, up to Rs 250 crore by Resham Chhabria and Jeetendra Hemdev and up to Rs 250 crore by Neesha Kishore Chhabria. The offer also includes a reservation for subscription by eligible employees.
Jefferies View On Polycab India:
Research firm Jefferies has maintained buy rating on Polycab India with a target at Rs 3,325 per share.
Despite macro headwinds, company gained 200 bps organized market share in FY22. However, copper volatility is largely a pass-through in cables & wires.
Its adjusted profit to clock 27% CAGR & return ratios to expand 600-700 bps over FY22-25, reported CNBC-TV18.
Polycab India was quoting at Rs 2,244.10, down Rs 14.25, or 0.63 percent on the BSE.
Santosh Meena, Head of Research, Swastika Investmart:
Paytm is bottoming out after building a strong base at the 500 level. It is now witnessing a breakout of symmetrical triangle formation with strong positive divergence in RSI.
It manages to close above its all-important moving averages where we can expect immediate targets of 870/990. On the downside, 650 should act as an immediate and strong support level.
Market at 3 PM
Benchmark indices were trading flat in the volatile session.
The Sensex was down 3.36 points or 0.01% at 53157.92, and the Nifty was up 13.60 points or 0.09% at 15845.60. About 1643 shares have advanced, 1441 shares declined, and 124 shares are unchanged.
Hindustan Aeronautics board recommends final dividend:
The company Board at its meeting held today has recommended final dividend of of Rs 10 per equity share of Rs 10 each fully paid up (100%) for the Financial Year 2021-22, subject to approval of the members of the Company at the ensuing Annual General Meeting.
European Markets trade higher with CAC up 1%
Tata Motors to increase prices of commercial vehicles from July 1 by 1.5-2.5 percent
Tapan Patel, Senior Analyst (Commodities), HDFC Securities
:
Crude oil prices traded higher with benchmark NYMEX WTI crude oil prices rose by more than 1% to $110.78 per barrel. Crude oil prices traded up amid tight supplies. But leaders of the G7 nations vowed to add pressure to Russia while lowering energy prices. Members of the Organization of the Petroleum Exporting Countries and their allies including Russia, known as OPEC+, are likely to stick to a plan for accelerated oil output increases in August when they meet on Thursday. Libya might halt exports in the Gulf of Sirte area within 72 hours amid unrest that has restricted production.
We expect crude oil prices to trade sideways to up with resistance at $112 per barrel with support at $108 per barrel. MCX Crude oil July contract has important support at Rs. 8610 and resistance at Rs. 8850 per barrel.
Market update at 2 PM: Sensex is down 195 points or 0.37 percent at 52,965.63 while the Nifty shed 36 points or 0.23 percent at 15,796 level.
Buzzing
Sterling Tools' subsidiary Sterling Gtake E-mobility (SGEM) forayed into E-LCV segment. With this development, SGEM continues to grow its presence across various E-mobility segments.
Starting with supplies to a single Electric 2W customer a year back, the company now has confirmed orders from more than 10 customers.
Sterling Tools touched 52-week high of Rs 297 and quoting at Rs 288.05, up Rs 3.50, or 1.23 percent on the BSE.
BSE Metal index rose 1 percent supported by the Hindalco Industries, Jindal Steel, NALCO
Rupee weakens: What should you do?
Rupee weakens: What should you do?... Read More
Today’s Stock Market Action
Oil & Gas index rose 1 percent supported by the ONGC, Adani Total Gas, Petronet LNG
Market at 1 PM
Benchmark indices erased most the intraday losses and trading flat with Nifty around 15800.
The Sensex was down 115.75 points or 0.22% at 53045.53, and the Nifty was down 24.50 points or 0.15% at 15807.50. About 1518 shares have advanced, 1464 shares declined, and 140 shares are unchanged.
Rahul Kalantri, VP Commodities, Mehta Equities:
The rupee extended its fall on Tuesday morning despite weakness in the dollar index. Rebound in the crude oil prices and talks of more economic sanctions on Russia pushed the rupee lower.
FII selling in the domestic markets is continuing which is also putting pressure on the rupee.
Further, economic sanctions on Russia could lead to volatility in global energy prices and put pressure on emerging market currencies. We expect the rupee to remain volatile to weak this week and may cross 78.90 levels.
CLSA View on Mahindra and Mahindra
The broking house CLSA has kept a buy rating on Mahindra and Mahindra and raised the target price to Rs 1,356.
CLSA feels that the Scorpio-N will boost SUV line-up and its advanced features at lower price are a great value proposition for customers.
There is room for improvement in volumes if chip crunch eases faster, CNBC-TV18 reported.
Mahindra and Mahindra touched a 52-week high of Rs 1,121 and was quoting at Rs 1,098.10, up Rs 16.05, or 1.48 percent on the BSE.
Nifty Bank index down 0.5 percent dragged by the Bandhan Bank, Kotak Mahindra Bank, HDFC Bank
ITC to launch range of Millet-based products across categories
ITC is going to launch range of Millet-based products across categories, quoting Sources, reported CNBC-TV18.
The company is going to launch ‘Jowar’ & ‘Bajra’ biscuits under Sunfeast brand and range of savoury snacks including ‘Bujiya’, ‘Jowar Puffs’.
It mulls creating sub-brand under Bingo for Millet-based savoury snacks and set to foray into soup sachets under B Natural brand, it added.
ITC was quoting at Rs 270.40, up Rs 0.60, or 0.22 percent on the BSE.
Market at 12 PM
Benchmark indices erased some of the intraday losses but trading marginally lower.
The Sensex was down 117.96 points or 0.22% at 53043.32, and the Nifty was down 28.60 points or 0.18% at 15803.40. About 1476 shares have advanced, 1465 shares declined, and 131 shares are unchanged.
Nomura View on Mahindra and Mahindra
The research firm Nomura has maintained a buy rating on Mahindra and Mahindra with a target of Rs 1,308.
The new Scorpio-N should further support transformation of a lifestyle SUV maker, feels Nomura.
There is potential to incrementally add 10-15% upside to overall FY23-24 utility vehicle volumes, CNBC-TV18 reported.
Rupee Updates
Indian rupee fell further to hit fresh record low. It is trading at 78.69 against previous close of 78.34.
Star Health and Allied Insurance has signed a Corporate Agency agreement with IDFC FIRST Bank, for distribution of its health insurance solutions.
Campus Activewear rises as CLSA initiates coverage with ‘buy’ call
Campus Activewear share price rose on June 28 after foreign brokerage house CLSA India initiated coverage on the stock with a "buy" rating and a price target of Rs 370, implying an upside of 12 percent from the current level.
Campus Activewear was quoting at Rs 335.95, up Rs 6.10, or 1.85 percent on the BSE.
GMR Infra's subsidiary, DIAL, completes issuance of 5-year NCDs
Delhi International Airport Limited (DIAL), a subsidiary of GMR Airports Limited and a step-down subsidiary of GMR Infrastructure Limited (GIL), announced that it had successfully completed the issuance of 5 years Non-Convertible Debentures (NCDs) amounting Rs 10
billion and the same listed on the BSE Limited on June 23, 2022.
Indiabulls Real Estate guilty of profiteering Rs 6.46 crore, to refund homebuyers: NAA
The National Anti-profiteering Authority (NAA) has found Indiabulls Real Estate guilty of not passing on over Rs 6.46 crore input tax credit benefits to homebuyers by commensurate reduction in prices post rollout of GST. Based on a case filed by a homebuyer that Indiabulls Real Estate has not passed on ITC benefits in project Sierra-Vizag, situated in Visakhapatnam, the Directorate General of Anti Profiteering (DGAP) investigated the case and found the builder guilty of profiteering.
Market update at 11 AM: Sensex is down 350.28 points or 0.66% at 52811.00, and the Nifty shed 98.30 points or 0.62% at 15733.70.
BSE Power index fell 1 percent dragged by Adani Green, JSW Energy, Adani Power
Brigade Enterprises signs Joint Development Agreement
Brigade Group has signed a Joint Development Agreement to develop around 2.1 million sguare feet in Chennai. The land, located at Perumbakkam, just off OMR Sholinganallur junction, is spread over 15 acres and will be developed as a large residential township.
Moody's raises JSW Steel's rating:
JSW Steel was quoting at Rs 569.50, down Rs 2.25, or 0.39 percent.
BSE Power index fell 1 percent dragged by Phoenix Mills, Godrej Properties, Indiabulls Real Estate
Morgan Stanley View on M&M:
The research house Morgan Stanley has an kept overweight rating on the stock with a target of Rs 1,198.
Multiple new launches in the SUV segment underscore the SUV focus of original equipment makers while passenger vehicles will continue to lead recovery in autos, CNBC-TV18 reported.
Mahindra and Mahindra touched a 52-week high of Rs 1,121 and quoting at Rs 1,118.30, up Rs 36.25, or 3.35 percent on the BSE.
Goldman Sachs View on Bajaj Auto
Research house Goldman Sachs has maintained buy rating on Bajaj Auto with a target at Rs 4,250 per share.
The buyback is likely to improve FY24 RoE by 180 bps to 25% with minimum buyback size announced is for USD 160 million, reported CNBC-TV18.