Rupak De, Senior Technical at LKP Securities:
The Nifty has recently experienced a positive breakout from a sideways pattern, which is seen as a favorable development. This breakout comes just before the Reserve Bank of India (RBI) announces its rate decision tomorrow. Market participants are anticipating a dovish stance from the RBI governor, contributing to a positive sentiment in the market.
Technically, support for the Nifty is positioned at 18650, while resistance is expected around the range of 18880-18900.
The Bank Nifty remained sideways following a positive start. The undertone of the index is still bullish, maintaining the support of 44000 in a spot where a decent amount of Put writing is seen and resistance is still intact at 44500. After the central bank policy the Bank Nifty is expected to give a move on either side. Upon a decisive move 44500, we might see strong directional upside moves.
Srikanth Subramanian, CEO at Kotak Cherry:
The Reserve Bank of India in its upcoming policy meeting on June 8th is expected to continue with its interest rate pause stance. In the previous policy, the MPC clearly stated that its next move would depend on data, and the latest inflation numbers were within the RBI target inflation range.
The CPI inflation data for April came in at an 18 month low of 4.7%. MPC may though continue with withdrawal of accommodation stance. Important to see if there be any changes announced in the inflation and GDP projections for FY24.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Markets rallied sharply and witnessed broad-based buying support ahead of the credit policy with the Sensex ending past the crucial 63000-mark. Upbeat moved prevailed throughout the session as investors are hoping a rate hike pause amid improving domestic macroeconomic situation. All eyes will be on the RBI’s growth outlook and inflation projection for the year, and in case if there is any downgrade in inflation expectations, optimism is likely to persist.
Technically, Nifty clearing the important resistance level of 18650 may intensify the positive momentum. A bullish candle on and a higher bottom formation clearly indicates further uptrend from the current levels.
For the breakout traders now, 18650 would be the key support level to watch out. Above which, the market could rally till 18800-18875. On the flip side, below 18650, uptrend would be vulnerable and below the same, the index could retest the level of 18600-18550.
Vinod Nair, Head of Research at Geojit Financial Services
Investors are becoming more optimistic due to the anticipation of a positive revision in the RBI’s inflation forecast during the ongoing MPC meeting. It is expected that the RBI will maintain its pause on rate hikes, considering the significant improvement in inflation, which has now come within the RBI's comfort zone.
Furthermore, the participation of FIIs as net buyers, after a brief halt, contributed to today's market rally, particularly driven by mid- and small-cap stocks.
Gaurav Bissa, VP - InCred Equities
Nifty had a small gap up opening which was then followed by a range bound move for a couple of hours. This was predominantly due to Bank Nifty which was trading almost flat in the opening hours. However, the second hour of the trading session brought fresh cheers to bulls with Nifty making fresh highs every hour even when Bank Nifty continued to struggle.
Nifty witnessed fresh hourly breakout above 18650 levels which has now paved the way towards 18800-18850 levels. Bank Nifty has also managed to close above its swing breakout level of 44200 which if sustained can lead to a rise till 45000 levels.
The immediate support is at 18630 levels for Nifty and 43900 for Bank Nifty. The trend for both the indices remains positive.
Rupee Close:
Indian rupee ended with a gain of 7 paise at 82.54 per dollar against previous close of 82.61.
Market Close
Benchmark indices ended on strong note on June 7 with Nifty above 18,700 led by buying across the sectors.
At close, the Sensex was up 350.08 points or 0.56% at 63,142.96, and the Nifty was up 127.40 points or 0.68% at 18,726.40. About 2214 shares advanced, 1244 shares declined, and 124 shares unchanged.
Biggest gainers on the Nifty were Britannia Industries, Tata Consumer Products, BPCL, Nestle India and HDFC Life, while losers were Cipla, Kotak Mahindra Bank, Bajaj Finance, M&M and Maruti Suzuki.
All the sectoral indices ended in the green with capital goods, metal, oil & gas, FMCG, power, realty up 1 percent each.
The BSE midcap and smallcap indices also added 1 percent each.
Allcargo Logistics arm Transindia Real Estate to sell Jhajjar Logistics Park & 10% in other parks to Blackstone
Allcargo Logistics was quoting at Rs 292.75, up Rs 8.55, or 3.01 percent.
Maharashtra signs MoU with NHPC for renewable energy projects
The Maharashtra government has signed a Memorandum of Understanding (MoU) with hydropower giant NHPC Ltd for the establishment of pumped hydro storage units and other renewable projects, the ministry of power said in a statement on June 7.
As per the MoU, four pumped storage projects totalling 7,350 megawatts (MW) will be built within the state. The locations include Kalu (1150MW), Savitri (2250 MW), Kengadi (1550MW) and Jalond (2400 MW).
Dollar wobbles as traders consider rate outlook
The dollar wobbled on Wednesday as chances faded for a rate hike next week by the Federal Reserve, while the Canadian dollar touched one-month highs as traders amped up bets for the country to raise rates and the Turkish lira hit record lows.
The Aussie scaled three-week highs after the Reserve Bank of Australia's decision to raise to 11-year highs on Tuesday and Governor Philip Lowe signalled more rate hikes in the pipeline, despite the greater risk of an economic downturn.
The currency was up 0.1% at $0.6677, having touched an overnight peak of $0.669, its highest since May 16.
Expect Rupee to trade with a slight negative bias: Anuj Choudhary - Research Analyst, Sharekhan by BNP Paribas
Indian Rupee appreciated today on positive domestic equities and some softness in US Dollar. Decline in crude oil prices also supported Rupee. However, a soft tone in Asian and European markets due to an unexpected decline in China’s trade balance capped sharp gains.
The World Bank revised 2023 global growth forecast higher at 2.1% from 1.7% in its June forecast but slashed 2024 growth estimates to 2.4% from previous forecast of 2.7%.
India’s GDP estimates were revised lower 6.3% for FY 2023-24 from 6.6% earlier. US Dollar softened on uncertainty over rate hike by US Federal Reserve in its June FOMC.
We expect Rupee to trade with a slight negative bias as the World Bank trimmed India’s growth forecast as well as concerns over global economic recovery. However, positive domestic markets and weakness in oil prices may support Rupee at lower levels.
Traders may remain cautious ahead of US trade balance data. Market participants may remain cautious ahead of RBI’s monetary policy later this week. RBI is expected to leave the repo rate unchanged at 6.5%. We expect USDINR spot to trade in between 82.20 to 83 in the near term.
Nifty Metal index added 1.5 percent led by Welspun Corp, Tata Steel, JSW Steel
| Company | CMP | Chg(%) | Volume |
|---|---|---|---|
| Welspun Corp | 281.00 | 4.23 | 2.24m |
| Tata Steel | 111.70 | 2.48 | 39.44m |
| JSW Steel | 727.95 | 2.12 | 3.23m |
| SAIL | 84.85 | 1.98 | 14.46m |
| Hindalco | 422.95 | 1.78 | 6.32m |
| Jindal Steel | 531.80 | 1.67 | 4.07m |
| APL Apollo | 1,181.10 | 1.46 | 616.01k |
| Coal India | 230.95 | 1.38 | 15.91m |
| NALCO | 84.45 | 1.14 | 4.74m |
| Ratnamani Metal | 2,336.75 | 0.67 | 22.75k |
Piper Serica closes Rs 100 crore angel fund
Piper Serica Angel Fund, which invests in tech-based startups, has crossed its target corpus of Rs 100 crore and will now be exercising the green-shoe option of Rs 25 crore.
Since its inception in October 2022, the fund has identified and capitalised on promising investment opportunities and made 12 investments, with an additional four undergoing due diligence, the fund said in a statement.
European shares dip
European stock markets dipped on Wednesday and the U.S. dollar nudged higher as weak Chinese trade data had investors fretting about softening global demand, with attention turning towards next week's pivotal inflation data and Federal Reserve meeting.
Meanwhile, Turkey's lira plunged to a record low against the greenback as authorities appeared to loosen stabilising measures after the government signalled a pivot to more orthodox policies.
Market at 3 PM
The Sensex was up 338.93 points or 0.54% at 63,131.81, and the Nifty was up 122.70 points or 0.66% at 18,721.70. About 2138 shares advanced, 1161 shares declined, and 97 shares unchanged.
New India Assurance Company up 2% on boost in market share
New India Assurance Company Ltd rallied 2 percent in afternoon trade on June 7 on an increase in its market share in the general insurance sector in the month of May.
The largest government-owned general insurance player grew 9.67 percent to Rs 2,421 crore in May, with its market share improving to 18.51 percent from 17.07 percent in the year-ago period.
BSE FMCG index gained 1 percent supported by Sukhjit Starch and Chemicals, Magadh Sugar & Energy, Dhampur Sugar
| Company | CMP | Chg(%) | Volume |
|---|---|---|---|
| Sukhjit Starch | 461.55 | 8.6 | 7.10k |
| Magadh Sugar | 386.55 | 8.08 | 11.25k |
| Dhampur Sugar | 267.45 | 5.82 | 93.33k |
| LT Foods | 123.80 | 5.68 | 229.44k |
| Shree Renuka | 44.10 | 5.4 | 2.20m |
| Globus Spirits | 1,178.80 | 5.37 | 53.24k |
| Avadh Sugar | 505.00 | 5.33 | 14.13k |
| United Brewerie | 1,506.70 | 4.51 | 25.81k |
| Triveni Engg | 289.40 | 4.29 | 181.04k |
| IFB Agro | 518.00 | 4.2 | 1.65k |
Nomura View On HUL
-Buy rating, target at Rs 3,025 per share
-Gradual uptick in growth and margin improvement continues
-Expect core categories to be relatively resilient
-Expect FY24 to be the year of volume growth & margin recovery.
-Best execution, product superiority & digital investments are yielding better than industry growth
Hindustan Unilever was quoting at Rs 2,719.40, up Rs 29.35, or 1.09 percent on the BSE.
| Company | 52-Week High | Day’s High | CMP |
|---|---|---|---|
| Torrent Power | 671.95 | 671.95 | 658.00 |
| Max Healthcare | 565.00 | 565.00 | 559.95 |
| HINDPETRO | 278.40 | 278.40 | 276.80 |
| PB Fintech | 666.00 | 666.00 | 642.60 |
| Tata Comm | 1452.00 | 1452.00 | 1,437.60 |
| Prestige Estate | 537.00 | 537.00 | 527.15 |
| Aurobindo Pharm | 672.95 | 672.95 | 672.15 |
| L&T Finance | 108.25 | 108.25 | 107.60 |
| TVS Motor | 1348.75 | 1348.75 | 1,339.90 |
| Dalmia Bharat | 2173.05 | 2173.05 | 2,166.05 |
IKIO Lighting subscribes 4.5 times till 2.35pm
The initial public offering (IPO) of IKIO Lighting continued to garner interest from investors, as the offer was subscribed 4.5 times at 2.35pm by June 7, the second day of bidding.
Investors bought 6.84 crore equity shares against an offer size of 1.52 crore shares, subscription data available on exchanges shows.
Retail investors had bid 4.34 times their allotted quota of shares, while the portion set aside for high-networth individuals was subscribed 9.3 times. Qualified institutional investors, portion subscribed 1 times.
| Company | 52-Week High | Day’s High | CMP |
|---|---|---|---|
| Britannia | 4907.95 | 4907.95 | 4,885.50 |
| Nestle | 22424.75 | 22424.75 | 22,350.50 |
| Tata Motors | 575.00 | 575.00 | 566.75 |
| Hero Motocorp | 2979.00 | 2979.00 | 2,959.90 |
| Apollo Hospital | 5040.00 | 5040.00 | 5,022.95 |
| Axis Bank | 981.25 | 981.25 | 976.10 |
| Bajaj Auto | 4774.00 | 4774.00 | 4,762.45 |
| Titan Company | 2901.20 | 2901.20 | 2,897.90 |
| UltraTechCement | 8171.90 | 8171.90 | 8,124.55 |
| Maruti Suzuki | 9800.00 | 9800.00 | 9,672.95 |
Telecom stocks gain on report Rs89050 crore aid approved for BSNL
Shares of companies providing telecom and related infrastructure services rose after CNBC-TV18 reported that India’s cabinet of ministers has approved Rs89050 crore aid for revival of state-run Bharat Sanchar Nigam Ltd. Telecom infra provider Tejas Networks gained as much as 3.2%, ITI Ltd gained 6.3%, HFCL Ltd up 2.4%, Sterlite Tech rose 3.1%. BSNL’s state-run listed peer Mahanagar Telecom Nigam gained as much as 11%
| Index | CMP Chg(%) | YTD(%) 1 Week(%) | 1 Month(%) 1 Year(%) |
|---|---|---|---|
| NIFTY AUTO | 14784.35 0.37 | 17.23 4.12 | 10.78 30.12 |
| NIFTY IT | 28891.50 0.71 | 0.94 -1.46 | 4.23 -1.57 |
| NIFTY PHARMA | 13031.10 0.14 | 3.44 2.78 | 3.35 6.12 |
| NIFTY FMCG | 51561.10 1.02 | 16.73 1.02 | 7.00 36.95 |
| NIFTY PSU BANK | 4098.65 0.77 | -5.09 1.71 | -1.32 59.68 |
| NIFTY METAL | 6026.90 1 | -10.36 2.32 | 3.79 12.85 |
| NIFTY REALTY | 505.45 1.41 | 17.06 5.57 | 13.57 27.40 |
| NIFTY ENERGY | 24051.25 0.77 | -7.03 0.74 | 0.44 -7.86 |
| NIFTY INFRA | 5571.65 0.9 | 6.08 2.05 | 3.07 15.55 |
| NIFTY MEDIA | 1813.15 0.87 | -8.98 3.26 | 6.18 -8.03 |
RBI drains only Rs18.5 billion vs Rs750 billion aim via reverse repo auction
The Reserve Bank of India received bids far less than it aimed for at its two-day variable rate reverse repo auction held on Wednesday even as the central bank doubled down on draining excess liquidity. It received offers worth only Rs18.5 billion versus Rs750 billion notified. Cutoff rate was 6.49%. This comes ahead of the rate decision on Thursday, where the central bank is expected to hold rates, according to all economists in a Bloomberg survey, with markets watching out for any change in stance (Source Bloomberg)
Varun Beverages Large Trade | 10.5 lakh (0.23% equity) worth Rs 172.6 crore change hands at an average of Rs 1,660 per share, reported CNBC-TV18.
Tata Consumer share price gains as FMCG firm sets sight on acquisitions in F&B space
Tata Consumer Products' share price gained over 2.5 percent on June 7, a day after Tata Group chairman N Chandrasekaran said that they are open to acquisitions and expanding into new categories in the annual general meeting.
"Currently, we’re expanding both the beverages and food businesses. So there’s a lot of focus in these businesses, we got to scale them. And also we are investing in R&D and innovation. We are looking at new categories and looking at acquisition opportunities,” he said.
Market at 2 PM
The Sensex was up 212.27 points or 0.34% at 63,005.15, and the Nifty was up 85.40 points or 0.46% at 18,684.40. About 2146 shares advanced, 1121 shares declined, and 103 shares unchanged.
HAL surges 3% on imminent deal with General Electric to co-produce jet engines
Shares of Hindustan Aeronautics Ltd (HAL) surges over 3 percent on June 7 as General Electric (GE) will reportedly be entering into a pact with HAL to co-produce jet engines in India.
The Biden administration has given permission, for GE to co-produce the engines in India, ahead of PM Modi's visit to the US later this month, CNBC-TV18 reported.
Suzlon Energy jumps 14 percent, extends 3-day gains to 25%
Shares of Suzlon Energy jumped 14 percent on June 7, extending gains for the third session. In three straight sessions, the stock has notched 25 percent gains. Sentiment for the stock has been running high, especially after positive earnings results and new large orders.
The company recently announced that 20 gigawatts (GW) of wind energy installations were accomplished through the deployment of 12,647 wind turbines across 17 countries. These installations will generate sufficient green electricity to power over 13 million Indian households.
HPCL Large Trade | 26.9 lakh (0.2% equity worth Rs 74.2 crore change hands at an average of Rs 276.45 per share, reported CNBC-TV18.
Hindustan Petroleum Corporation was quoting at Rs 276.40, up Rs 14.10, or 5.38 percent and touched a 52-week high of Rs 278.40.
IFB Industries shares gain 5.5% after Societe Generale picks up stake
Shares of IFB Industries jumped 5.5 percent on June 7, a day after Europe-based financial services group Societe Generale bought 3 lakh shares or a 0.74 percent stake in the company.
The shares were bought at an average price of Rs 800 apiece through open market transactions on June 6. The seller of the stake could not be identified by Moneycontrol.
Nelco to invest in Piscis Networks
Nelco announced its investment in Piscis Networks Private, an OEM and one of the pioneers in providing SD-WAN solutions (Software Defined Wide Area Network) that improves network performance and reliability.
This investment is an important step for Nelco to expand its service portfolio and elevate its position as an integrated network solution provider.
NELCO was quoting at Rs 725.00, up Rs 6.35, or 0.88 percent.
Morgan Stanley View On Bharat Forge
-Overweight rating, target at Rs 1,028 per share
-Company remains committed to 2030 targets of 3x revenue growth, 20% margin
-Over 2 years, capex will remain lower than depreciation helping RoCE improvement
-Cap allocation priorities include debt reduction, 30-35% dividend payout
-Capital allocation priorities focus on inorganic growth, mainly on domestic side
Bharat Forge was quoting at Rs 807.00, up Rs 4.80, or 0.60 percent on the BSE.
Insecticides India gains 3% as govt grants patent for Substituted Pyrazole Derivatives
Shares of Insecticides India rose over 3 percent on June 7 after the government granted patent to the company for Substituted Pyrazole Derivatives, and Insecticides and Pesticides. The patent is granted for a period of 20 years from the date of filing, which was June 28, 2019.
Loyal Equipments jumps 5% after acquiring order worth Rs 11.36 crore
Shares of Loyal Equipments Ltd jumped 5 percent in early trade on June 7 after the company said it had bagged an order for Rs 11.36 crore from Numaligarh Refinery Limited to supply shell and tube heat exchangers.
Loyal’s March quarter revenues were up 14.49 percent year-on-year to Rs 17.38 crore. Net profit for the quarter stood at Rs 3.5 crore, compared to a loss of Rs 1.75 crore for the same period last year.
| Index | CMP Chg(%) | YTD(%) 1 Week(%) | 1 Month(%) 1 Year(%) |
|---|---|---|---|
| NIFTY 50 | 18683.50 0.45 | 3.19 0.80 | 3.40 13.81 |
| NIFTY BANK | 44226.95 0.14 | 2.89 0.22 | 3.67 26.38 |
| NIFTY Midcap 100 | 34326.95 0.86 | 8.94 1.68 | 6.78 23.46 |
| NIFTY Smallcap 100 | 10540.65 1.2 | 8.32 3.68 | 8.33 16.32 |
| NIFTY NEXT 50 | 42904.95 0.72 | 1.70 2.03 | 7.02 13.43 |
Loyal Equipments jumps 5% after acquiring order worth Rs 11.36 crore
Shares of Loyal Equipments Ltd jumped 5 percent on June 7 after the company said it had bagged an order for Rs 11.36 crore from Numaligarh Refinery Limited to supply shell and tube heat exchangers.
Loyal’s March quarter revenues were up 14.49 percent year-on-year to Rs 17.38 crore. Net profit for the quarter stood at Rs 3.5 crore, compared to a loss of Rs 1.75 crore for the same period last year.
IKIO Lighting IPO subscribed 3.61 times on Day 2 of bidding
The initial public offering (IPO) of IKIO Lighting continued to garner interest from investors, as the offer was subscribed 3.61 times by June 7 morning, the second day of bidding.
Investors bought 5.48 crore equity shares against an offer size of 1.52 crore shares, subscription data available on exchanges shows.
Retail investors had bid 3.70 times their allotted quota of shares, while the portion set aside for high-networth individuals was subscribed 7.61 times
Qualified institutional investors, who have been allotted 50 percent of shares in the offer, bought 33 percent of their reserved portion.
Market at 1 PM
The Sensex was up 191.31 points or 0.30% at 62,984.19, and the Nifty was up 81.20 points or 0.44% at 18,680.20. About 2137 shares advanced, 1084 shares declined, and 117 shares unchanged.
Macrotech Developers reappoints Raunika Malhotra as Whole-time Director
Macrotech Developers' Board of Directors has approved the re-appointment of Raunika Malhotra as Whole-time Director of the company, for two years with effect from June 26. This is subject to approval of the shareholders at the ensuing Annual General Meeting.
Macrotech Developers was quoting at Rs 573.20, down Rs 0.60, or 0.10 percent.
| Company | CMP | High Low | Gain from Day's Low |
|---|---|---|---|
| Britannia | 4,890.10 | 4,891.00 4,715.00 | 3.71% |
| Tata Motors | 571.15 | 575.00 552.15 | 3.44% |
| BPCL | 367.85 | 368.35 356.75 | 3.11% |
| TATA Cons. Prod | 813.80 | 814.70 791.50 | 2.82% |
| Nestle | 22,355.00 | 22,385.25 21,749.90 | 2.78% |
| Hero Motocorp | 2,965.00 | 2,967.90 2,907.10 | 1.99% |
| SBI Life Insura | 1,245.05 | 1,245.75 1,221.00 | 1.97% |
| HDFC Life | 593.45 | 594.45 582.70 | 1.84% |
| Larsen | 2,312.90 | 2,316.10 2,278.00 | 1.53% |
| Apollo Hospital | 5,021.80 | 5,040.00 4,950.05 | 1.45% |
Ceinsys Tech shares fall as Zodius Technology Fund sells further stake
Zodius Technology Fund continued to be seller in Ceinsys Tech, offloading 1.96 lakh shares or 1.27% stake at an average price of Rs 199.37 per share. Zodius has been selling its stake in the company since May, so far selling 9.12 lakh shares or 5.91% stake. As of March 2023, it held 10.94 lakh shares or 7.09% stake.
Persistent Systems expands partnership with Amazon Web Services
Persistent Systems is strengthening its relationship with Amazon Web Services (AWS) and becoming a collaborator for the latest Generative AI services from AWS.
Persistent Systems was quoting at Rs 4,986.60, up Rs 6.60, or 0.13 percent.
Promoter Rajat Agrawal offloads 1.88% stake in Gravita India
Promoter Rajat Agrawal has sold 13 lakh equity shares or 1.88% shareholding in Gravita India via open market transaction at an average price of Rs 586.04 per share, which amounted to Rs 76.18 crore. However, Jupiter India Fund has acquired 10 lakh shares or 1.44% stake in the company at an average price of Rs 585 per share.
Gravita India was quoting at Rs 594.25, down Rs 7.60, or 1.26 percent.
