Closing Bell: Nifty ends below 18,600, Sensex falls 223 pts; capital goods outshine

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities:

The Bank Nifty index is currently experiencing selling pressure as the bears maintain their control at higher levels. The resistance zone between 44300 and 44500 has proven to be strong, preventing the index from making significant upward moves.

On the downside, there is a support level at 43700, which has the potential to act as a buying opportunity. If the index manages to hold above this support level, it could attract buyers who see it as a favorable entry point.

It is important to monitor the price action around these key levels, as a break above the resistance zone or a breach below the support level could indicate a potential change in the market sentiment and trigger further directional moves.

Ajit Mishra, SVP - Technical Research, Religare Broking

Markets edged lower and lost nearly half a percent, in continuation to the previous session’s fall. After the flat start, the Nifty gradually inched lower as the day progressed and finally settled around the day’s low at 18,563.40 levels. The majority of sectors aligned with the benchmark move and ended lower wherein IT, FMCG and auto were among the top losers. The broader indices too witnessed profit taking and settled marginally in the red.

Indications are pointing towards a further slide in the Nifty index however downside also seems capped citing support at 18,400 levels. We recommend focusing more on position management during the corrective phase and preferring sectors/stocks that are showing relatively higher strength.

Gaurav Bissa, VP - InCred Equities

Nifty opened on a flattish note and then started drifting as the day progressed. Once it closed below the previous breakout of 18630-18650, it was seen getting under incremental pressure and closed near the low point of the day. Bearish divergences in RSI and made on the daily timeframe ensured that any rise was met with rejections resulting in previous low getting violated. The next support in Nifty is seen at the 18440-18450 zone where the 21ema on the daily chart is placed.

Unlike Nifty, the trend in Bank Nifty was majorly flat with incremental volatility. The index was seen hovering around the swing break level of 44160 with price closing above and below it for a couple days. So far the index is trading in 43700-44300 range and a close breaking either of these data points is likely to decide further orientation in Bank Nifty. 43700 will be a key support area as 21ema on daily chart is placed at that level which has lent support to the index since April 2023.

Vinod Nair, Head of Research at Geojit Financial Services

The domestic market witnessed extended selling pressure as investors eagerly awaited the domestic inflation data due on Monday as the RBI refrained from an aggressive cut in their inflation forecast. The market is hopeful that the CPI inflation for May will further moderate from its current level of 4.7%. In addition to the domestic factors, global cues also failed to provide support, as the US reported high unemployment claims ahead of the release of the inflation figures and the Fed meeting.

Rupee Close:

Indian rupee ended 11 paise higher at 82.46 per dollar against previous close of 82.57.

Market Close:

Indian benchmark indices ended lower for the second consecutive session on June 9 with Nifty below 18600.

At close, the Sensex was down 223.01 points or 0.35% at 62,625.63, and the Nifty was down 71.10 points or 0.38% at 18,563.40. About 1705 shares advanced, 1727 shares declined, and 107 shares unchanged.

Top losers on the Nifty were Hero MotoCorp, Divis Laboratories, Tata Steel, HDFC Life and Eicher Motors, while gainers included IndusInd Bank, Axis Bank, L&T, Adani Enterprises and Power Grid Corporation.

Among sectors, capital goods rose 1 percent, while FMCG, PSU Bank, Information Technology, metal and oil & gas down 0.5-1%.

The BSE midcap and smallcap indices ended flat.

Maruti Suzuki launches the All-New Tour H1 - entry-level commercial hatchback

Maruti Suzuki India has introduced the All-New Tour H1 – India’s most fuelefficient entry level commercial hatchback. With the latest generation of Alto K10, the All-New Tour H1 offers fresh new exteriors, spacious interiors, enhanced comfort, convenience and safety features.

Maruti Suzuki India was quoting at Rs 9,628.95, down Rs 25.90, or 0.27 percent.

Pankaj Kumar, Research Analyst, Vice President – PCG Research, Kotak Securities

Q4FY23 domestic revenues of capital goods companies showed decent yoy growth, despite moderation in the case of L&T. Order inflows have increased a massive 69% yoy and 17% on a 4-year CAGR basis especially from companies such as ABB and Siemens, which would suggest a strong pickup in order inflows from the manufacturing sector.

In addition, larger outlay by the central government in FY24BE on capital expenditure is a positive for the infrastructure sector, although the slowdown in capital expenditure by states is a dampener.

Most capital goods and infrastructure stocks are trading at higher multiples compared to their pre-Covid levels. We are positive on the long-term prospects of the sector, but the sharp increase in stock prices makes us nervous about any disappointments, leading to a correction in multiples.

We like Cummins India (Buy, Fair Value Rs 1860) and Praj Industries (Buy, Fair Value Rs 450) in the space.

Expect USDINR spot to trade in between 82 to 82.80: Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas

Indian Rupee appreciated today on weak US Dollar and decline in crude oil price. FII inflows also supported Rupee while weak domestic equities capped sharp gains. U.S. Dollar declined after weekly unemployment claims fell to a year and half low at 261,000 vs. 233,000 in the previous week. This raised expectations of a pause in rate hike by US Federal Reserve in its June FOMC meeting.

We expect Rupee to trade with a slight positive bias on weakness in US Dollar and a hawkish tone by the RBI in its monetary policy yesterday. However, weak domestic markets and concerns over global economic slowdown may cap sharp upside. Market participants may also remain cautious ahead of US inflation data and FOMC meeting outcome next week. We expect USDINR spot to trade in between 82 to 82.80 in the near term.

Market at 3 PM

The Sensex was down 212.71 points or 0.34% at 62,635.93, and the Nifty was down 72.80 points or 0.39% at 18,561.70. About 1588 shares advanced, 1654 shares declined, and 115 shares unchanged.

Hazoor Multi Projects bags project worth Rs 119.2 crore; stock gains 3%

Hazoor Multi Projects received work commencement approval from BSCPL Infrastructure ltd- GVPR Engineers Ltd (JV) for construction of access controlled Nagpur- Mumbai Communication Expressway (Hindu Hruday Samrat Balasaheb Thackeray Maharashtra Samruddhi Mahamarg) in the state of Maharashtra on EPC mode for Package 13, from km577+739 to km.623+379) (Section - village Sonari to village Tarananpada) in district Nasik for Rs 119.18 crore.

Shrikant Chouhan, Head of Equity research (Retail), Kotak Securities

Both Nifty and Sensex gained around 0.7% in the past week. BSE Midcap Index gained around 1.05% while BSE SmallCap Index lost 3.02%. Macro sentiments remained volatile as frailties in European and US banks were under focus. Indian equity markets remained concerned about slowdown, higher interest rates and valuation even as inflation continued its downward trajectory both globally and domestically.

Most of the major sectors lost on a week-on week basis with BSE Power, BSE Auto, BSE Reality, BSE consumer discretionary, BSE Utilities, BSE FMCG and BSE IT losing the most. While key sectors that gained were BSE Oil & Gas, BSE Telecom and Nifty Pharma lost the most. Within the Nifty Index, Britannia (+6.2%), JSW steel (+5.6%) and Tata Motors (+5.2%) gained the most, while Tech Mahindra (-4.9%), Kotak Mahindra Bank (-2.9%), and TCS (-1.7%) lost the most. FPIs and DIIs were net buyers in the same period.

On the economy front, the RBI MPC voted unanimously to hold the repo rate at 6.5% while remaining focused on the withdrawal of accommodation. In International news, Gold prices dipped on Friday after climbing more than 1% in the previous session, although hopes of a likely pause on interest rate hikes by the U.S. central bank kept bullion on track for a weekly gain.

Focus now shifts to the U.S. consumer inflation report for May, due on June 13, ahead of the Fed meeting, which will provide investors more clarity about the health of the world’s largest economy. The dollar retreated on Friday, dragged down by lower U.S. Treasury yields after a spike in weekly jobless claims raised hopes that a peak in U.S. interest rates was near.

In Asia, inflation in China stayed at low levels in May, as the economy struggles to recover even after its strict Covid lockdown measures were lifted late last year. Producer price index in May fell 4.6%, marking the steepest year-on-year drop in seven years, when producer prices saw a year-on-year drop of 7.2% in May 2016.

Antique View On Indian Energy Exchange

-Downgrade to sell rating, target at Rs 105 per share
-Spot market prices will be higher than bilateral prices unlike before
-Possibility of a coupling operator can net the power flow within each zone
-Coupling operator will pose a new challenge for dominant exchanges like IEX
-Incentives by competitor exchanges like HPX & PXIL can eat into volume growth

Indian Energy Exchange was quoting at Rs 122.80, down Rs 13.70, or 10.04 percent and touched a 52-week low of Rs 116.05.

HAL gains 6% after stock split announcement

Hindustan Aeronautics (HAL) rose 6 per cent to hit a new high of Rs 3,729 on the BSE after the company said it will consider a stock split on June 27. Over the last month, the stock price of HAL has experienced a significant rally, surging by 22 percent, while the S&P BSE Sensex recorded a comparatively modest 1.7 percent increase. Looking at the past year, HAL's stock price has witnessed a remarkable surge of 90 percent, outperforming the benchmark index's gain of 13.5 percent. Furthermore, the market price of HAL has seen a remarkable ascent, soaring by an astonishing 710 percent from its low of Rs 448 on the BSE in March 2020.

Korea's potential upgrade to developed Market status could impact passive flows in India, China, and Taiwan

Abhilash Pagaria from Nuvama Alternative & Quantitative Research suggests that the potential upgrade of Korea from an MSCI emerging market to a developed market is expected to positively impact passive flows towards India, China, and Taiwan.

The brokerage house had hoped that Korea would be placed on the watch list this year, with the anticipation of being promoted to the developed market indexes by June 2024. It is further anticipated that Korea will be fully included in the developed market indexes starting from June 2025.

However, the recent announcement by MSCI indicates that there is still substantial work to be done by Korea to achieve 'developed' market status. MSCI Inc. has highlighted the need for Korea to improve access to its capital market, including extending currency trading hours. The market accessibility review by MSCI points out specific issues, such as the absence of offshore trading for the won and limitations on short selling.

Premier Explosives receives two orders worth Rs 57 cr; stock spikes but sees selling at highs

Shares of Premier Explosives jumped after the company received two orders worth Rs 57 crore on June 9. However, traders booked profits at highs to push the stock lower.

Premier Explosiveson June 9 said it received an order for supply of PI & P2 Motors to Bharat Dynamics for Medium Range Surface to Air Mission (MRSAM), which it has to deliver within 24 months. The order is worth Rs 43.26 crore.

The stock rose 2.49 percent to Rs 447 on BSE but succumbed to selling pressure and traded flat at Rs 436.55 as of 2.16 pm.In the current year so far, the stock has returned about 5 percent. Its 1-year return stands at 39 percent.

Nifty PSU Bank index shed 1 percent dragged by Bank of Maharashtra, Punjab & Sind Bank, UCO Bank

Market at 2 PM

The Sensex was down 155.91 points or 0.25% at 62,692.73, and the Nifty was down 51.50 points or 0.28% at 18,583. About 1606 shares advanced, 1618 shares declined, and 107 shares unchanged.

SBI board approves fundraising of up to Rs 50,000 crore

The Central Board of State Bank of India (SBI) has accorded approval for raising funds in INRand / or any other convertible currency by issue of debt instruments including but not limited to Long Term Bonds, Basel III compliant Additional Tier 1 Bonds, Basel III compliant Tier 2 Bonds, upto an amount of Rs 50,000 crores through private placement mode to Indian and/or Overseas investors during FY24, subject to GOI approval wherever required.

Brightcom shares surge 20% to hit upper circuit on 4th day of rally

Extending gains for the fourth day in a row, Brightcom shares were locked in the 5 percent upper circuit on June 9, with the rally translating a 20 percent growth for the stock.

The market regulator pulled up the company earlier this year for accounting irregularities and disclosure omissions. Brightcom’s asset impairment impact of Rs 868 crore was not reflected in its profit-and-loss account. Sebi said the company overstated its profits in the previous financial years.

CMS Info Large Trade | 2.1 crore shares (14.5% equity) worth Rs 643.4 crore change hands at an average of Rs 300 per share, reported CNBC-TV18.

Indoco’s Baddi facility receives EUGMP certification from Health Authority of Germany

Indoco Remedies has received EU GMP certification from the Competent Health Authority of Germany for its manufacturing site situated at HB 211 Village
Katha, IN- 173 205 Baddi, Tehsil- Nalagarh, District - Solan. The Agency conducted an inspection at Indoco’s manufacturing facility for oral dosage form (Baddi -III), from May 22 -25, 2023.

The EU GMP certification issued by the German Health Authority (Berlin) confirms that the site complies with the Good Manufacturing Practice requirements as referred in the EC Directive. The EU certification will support supplies of drug products registered in Europe, from this manufacturing site.

Goldman Sachs View On Fortis Healthcare

-Buy rating, target at Rs 325 per share
-Fortis to be primary vehicle for India growth
-Company is exploring potential acquisition, divestment, capital raise
-Corporate actions to come after disposal of proceedings at supreme court
-Company is evaluating value unlocking options for SRL
-Company is bridging the gap versus peers on operating metrics

Dollar eases after jump in US jobless claims; Fed in focus

The dollar retreated on Friday, dragged down by lower U.S. Treasury yields after a spike in weekly jobless claims raised hopes that a peak in U.S. interest rates was near, as the focus turned to the upcoming week packed with central bank meetings.

European markets were trading marginally lower at the end of a choppy week of uncertain global sentiment.

Sula Vineyards hits record high

India's largest wine producer, Sula Vineyards Ltd, saw its stock surge nearly 10 percent on June 9 to a record high, keeping up the momentum for the third straight session.

The stock hit Rs 474.80 a share and gained as much as 9.7 percent intraday.

The company on June 8 announced on exchanges that it has identified a new chief financial officer who will join the company in August but did not divulge the name. Earlier in March, Bittu Varghese had resigned as the CFO. It also announced the launch of three luxury villas at their iconic Beyond resort in Nashik.

BSE Capital Goods index rose 0.8 percent led by Suzlon Energy, Hindustan Aeronautics, CG Power

Market at 1 PM

The Sensex was down 82.93 points or 0.13% at 62,765.71, and the Nifty was down 30.20 points or 0.16% at 18,604.30. About 1677 shares advanced, 1512 shares declined, and 117 shares unchanged.

May Mutual Fund Data

Net equity inflows at Rs 2,906 crore versus Rs 5,275 crore inflows,MoM.

ETF inflow at Rs 4,524 crore versus Rs 6,790 crore inflows, Hybrid fund inflow at Rs 6,093 crore versus Rs 3,317 crore inflows and Liquid fund inflow at Rs 45,234 crore versus Rs 63,219 crore inflows, MoM.

Tyresnmore Online becomes subsidiary of Ceat after additional Rs 9 crore investment

Ceat has entered into a fifth addendum agreement to the existing share subscription and shareholders’ agreement with Tyresnmore Online and other parties, for making a further investment of upto Rs 9 crore in Tyresnmore, to acquire additional 10.89% stake. Now, Tyresnmore will become subsidiary of Ceat with 56.9% stake.

Nomura View On Dr Reddy's Laboratories

-Buy rating, target at Rs 5,161 per share
-India formulations business is the key focus market
-Company is attempting to differentiate through innovation
-US generics business remains competitive
-Short-term opportunities likely in current market
-Focus is on launching less competitive products
-Biosimilars business targeting next wave of patent expiries
-Rituxan filing could help facility inspection & approval by regulators
-China approvals are coming at a good pace now, allowing participation in GPO tenders
-Russia market is attractive, but Ruble depreciation remains the key risk
-Stock currently trading at 16.1x/13.7x on FY24/25 EPS estimates of Rs 289.5/Rs 340.5

Dr Reddy's Laboratories was quoting at Rs 4,684.30, up Rs 36.45, or 0.78 percent.

Promoter Gateway Distriparks buys additional 0.84% stake in Snowman Logistics

Gateway Distriparks has acquired additional 14 lakh shares in Snowman Logistics via open market transactions at an average price of Rs 43.32 per share. In previous session too, Gateway Distriparks bought additional 11 lakh shares or 0.65% stake in Snowman Logistics.

PTC Industries board approves issue of shares worth up to Rs 45 crore

PTC Industries' board of directors has approved the issue of equity shares worth up to Rs 45 crore, on preferential basis.

PTC Industries was quoting at Rs 3,055.90, up Rs 40.20, or 1.33 percent and touched a 52-week high of Rs 3,160.05.

HDFC AMC slips 4% as stock trades ex-dividend

The HDFC Asset Management Company (AMC) share slipped over 4 percent as the stock went ex-dividend on June 9.

While reporting the March quarter earnings, the company also said that it approved a dividend payout of Rs 48, the record date for which was set as June 9.

IRB Infra up 4% on strong toll collection in May

Shares of IRB Infrastructure Developers surged 4 percent on June 9 after the company clocked a year-on-year (YoY) growth of 20 percent in toll collection at Rs 411 crore in May 2023. Toll collections were at Rs 343 crore in the year-ago period.

The company’s order book stood at Rs 20,600 crore as of March 2023, with EPC at Rs 8,900 crore and operation and maintenance in BOT/TOT projects at Rs 11,700 crore. The robust order book provides revenue visibility over the next three years, Motilal Oswal Financial Services said.