Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:
The Nifty, with a gap up opening, crossed the hurdle zone of 15700-15800. The index, however, couldn’t build upon the early gains & was in a consolidation mode post the positive start.
Going ahead, the index can witness a brief consolidation near 15700-15800 before stretching higher. On the higher side, the Nifty is expected to test the crucial psychological mark of 16000, where there is 20-DMA as well. Overall structure shows that the benchmark index can trade with sideways to bullish bias in the short term.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Bulls kept the momentum going for the third straight session, as buoyancy across the global markets boosted sentiment. The rally was led by IT stocks, which had come under relentless selling in the recent sell-offs.
While the change in mood has come as a major relief, the optimism may remain for a few more sessions before the market turns volatile amid concerns slowing global economy due to rate hikes and continuing foreign fund outflows.
Currently the market is trading near its important resistance level and the texture of the chart suggests there is a strong possibility of a quick intraday correction from the current levels.
For day traders, 15900 and 15925 would act as immediate resistance levels. Below the same, the correction wave is likely to continue till 15750-15700. On the flip side, above 15925 breakout, the index could move up to 16000. Contra traders can take a long bet near 15700 with a strict support stop loss of 15660.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty gained for the third consecutive session on June 27, though gave up some gains during the day. At close, Nifty was up 0.85% or 132.8 points at 15832.1. Among sectors, IT, Metals and Capital Goods indices rose the most. Advance decline ratio ended sharply in the positive even as the Smallcap index outperformed the Nifty.
Falling inflation expectations and easing of COVID-19 restrictions in China that lifted global commodities helped assuage sentiments in global markets.
Volumes on the NSE continue to be on the lower side suggesting lack of conviction on the part of traders to take a big bet. Nifty in the current uptrend has entered the 15886-16172 downgap area, but has so far hesitated to build on gains. 15927-15638 could be the range for the Nifty in the near term.
Vinod Nair, Head of Research at Geojit Financial Services:
Declining commodity prices have been lifting the exhausted domestic equity market during the recent sessions. Despite this positivity, the underlying fear of recession, tightening monetary policy and inflation can trigger the volatility going forward.
A strong revival in the market can only be expected when the economy stabilises from these uncertainties and when FIIs turn net buyers.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
This is a segment where profitability is a few years away. Some of them might do well in the long run. But retail investors, instead of chasing hope, will be better off chasing solid stocks with strong fundamentals now.
Leading banks will report very good Q1FY23 results next month. That's a bird in hand; e-commerce companies are birds in bushes.
Rupee Close:
Indian rupee ended flat at 78.34 per dollar against Friday's close of 78.34.
Market Close:
Benchmark indices ended higher for the third straight session on June 27 with Nifty above 15800 amid buying across the sectors.
At close, the Sensex was up 433.30 points or 0.82% at 53,161.28, and the Nifty was up 132.70 points or 0.85% at 15,832. About 2311 shares have advanced, 1030 shares declined, and 140 shares are unchanged.
ONGC, Coal India, L&T, HCL Technologies and Tech Mahindra were among the top Nifty gainers. The losers were Eicher Motors, Apollo Hospitals, HDFC Life, Reliance Industries and Kotak Mahindra Bank.
All the sectoral indices ended in the green with capital goods, IT indices rose 2 percent each.
The BSE midcap index added 0.8 percent and smallcap index added 1.5 percent.
Parth Nyati, Founder, Tradingo on Russia defaults on foreign debt:
We believe that the Russian Default on the foreign debt will be a non-event for Indian Stock Markets. The markets globally have already discounted this event however, there could be a possibility of further isolation of Russia from the west.
Further, the contribution of Russia to world GDP is nominal and due to high crude oil and natural gas prices, Russia has been able to earn record current account surpluses in foreign exchange, thus leading to the strong performance of the Russian Ruble despite the massive sanctions.
Aurobindo Pharma receives warning letter from SEBI
We have received a warning letter from Securities Exchange Board of India (SEBI) on June 24, 2022, a copy of which is enclosed. The letter is in regards to certain disclosures made by the Company on the ongoing USFDA audit of Company's Unit-1 and observations made by the USFDA between the period 2019 to 2022, company said in its release.
The SEBI warning letter observes that the Company had disclosed very limited and restricted information and that the Company did not disclose the detailed reasons and also did not consider-the observations of USFDA as serious.
The Company is advised to ensure compliance with all applicable provisions of SEBI Regulations and to place this warning letter before its Board of Directors in ensuing Board Meeting. The Company is also instructed to disseminate this letter to the Stock Exchanges, it added.
Shivam Bajaj, Founder & CEO at Avener Capital:
Zomato’s acquisition of Blinkit for Rs 4,447 crore in an all-stock deal marked its entry into the emerging sector of “quick-commerce”. This deal shall provide cross-selling opportunities to Blinkit by gaining access to the 15mn active monthly users of Zomato and vice-versa.
Further, the merger might yield synergies in terms of better utilisation of Zomato’s hyperlocal delivery fleet and consequently reducing their cost of delivery. However, this high cash burning sector houses fierce competition from the likes of Zepto, Dunzo, Swiggy Instamart BigBasket, etc and it will be interesting to see how this expensive investment by zomato pans out in the future.
Moreover, whether Ola’s decision to exit food delivery space to focus on its core streams of strength amidst the current market conditions should have been a learning lesson for zomato too, is a question which might be answered in the near future.
Indian Card Clothing approves to acquire balance 40% stake in Garnett Wire
Board of Directors of Indian Card Clothing in its meeting held today, has declared special interim dividend of Rs 25 per equity share of face value of Rs 10 each to be paid as Special Interim Dividend for the financial year 2022-23.
The board also approved the proposal of acquiring balance 40% equity stake in Garnett Wire Ltd., UK – foreign subsidiary of the Company, from the Joint Venture Partner – Joseph Sellers & Son Limited.
Market at 3 PM
Benchmark indices were trading higher with Nifty above 15800.
The Sensex was up 454.04 points or 0.86% at 53182.02, and the Nifty was up 135.20 points or 0.86% at 15834.50. About 2332 shares have advanced, 866 shares declined, and 141 shares are unchanged.
Buzzing
Waltham Forest Council, based in East London, England, has selected Oracle Fusion Cloud Applications Suite to streamline operations. By using Oracle Fusion Applications for finance, procurement, and HR the Council will be able to improve insights, reduce costs, and enhance its employee experience. The implementation will be delivered by Oracle Partner Network (OPN) member, Evosys, a Mastek company.
Mastek was quoting at Rs 2,109.60, up Rs 65.55, or 3.21 percent
Today’s Stock Market Action
Chandan Taparia, Vice President, Equity Derivatives and Technical, Broking & Distribution, Motilal Oswal Financial Services:
Nifty has surpassed its key level of 15735 but there is some pressure at higher levels of 15888-16000. Overall we expect the index to trade in a broader range with capped upside.
At current juncture, we are advising to be with selective stocks and one can look for buying opportunity in HCL Tech, Paytm and Shriram Transport Finance.
ICRA downgrades long-term credit rating on GE T&D India
GE T&D India: ICRA has downgraded the long-term of the fund based and non-fund based facilities of the company to A from A+ with negative outlook, due to decline in company's financial performance.
GE T&D India was quoting at Rs 98.85, up Rs 0.40, or 0.41 percent on the BSE.
Realty stocks ride higher as Nifty Realty gains more than 1 percent
Realty stocks ride higher as Nifty Realty gains more than 1 percent. All stocks in the index trade positive led by Sunteck, Godrej Properties and Phoenix Ltd.
Realty stocks ride higher as Nifty Realty gains more than 1 percent
Realty stocks ride higher as Nifty Realty gains more than 1 percent. All stocks in the index trade positive led by Sunteck, Godrej Properties and Phoenix Ltd.
Vedanta is preparing for its biggest ever Rupee-bond sale
Vedanta is preparing for its biggest ever Rupee-bond sale. The company is looking to secure commitments for its 10 year notes amounting to Rs 4,809 crore. The proceeds will be used to prepay or repay debt and also for capital expenditure.
Bajaj Auto board approves share buyback plans of up to Rs 2,500 crores
Bajaj Auto board approves share buyback plans of up to Rs 2,500 crores as it offers to buyback 54,34,782 shares at up to Rs 4,600 per share from the open markets. This represents 9.61 percent 8.71 percent of the aggregate of the total paid-up share capital and free reserves (including securities premium account) of the Company.
Market at 2.00 AM
Indices trade higher, Sensex up around 600 points, Nifty around 15,900
The Sensex was trading higher with a gain of 637.4 points or 1.21% at 53,365.39 and the Nifty was higher by 197.6 points or 1.26% at 15,897. About 2,517 shares have advanced, 820 shares declined, and 161 shares are unchanged.
Buzzing
CSB Bank in its BSE filing said the board has appointed Bhama Krishnamurthy as the part-time chairperson of the bank. This appointment is subject to the approval of Reserve Bank of India.
CSB Bank was quoting at Rs 195.30, up Rs 3.10, or 1.61 percent on the BSE.
BSE Midcap Index up 1 percent supported by the JSW Energy, Mindtree, IDFC First Bank
UBS View on Zomato
Brokerage house UBS has kept buy rating on Zomato with a target at Rs 95 per share.
The company reiterated earlier guided upper limit of USD 400 million over next 2 years.
The lower valuation & reiteration of upper limit in further investments into Blinkit are positives, reported CNBC-TV18.
Nifty FMCG index rose 1 percent led by the Emami, ITC, Godrej Consumer Products
Two AstraZeneca drugs get EU backing for treatment of some breast cancers, reported Reuters.
Invesco MF offloads 7.13 lakh shares in Repco Home Finance
Invesco MF through its Invesco India Multicap Fund sold 3,73,659 equity shares of Repco Home Finance and Invesco Tax Plan offloaded 3,39,349 equity shares at an average price of Rs 117 per share.
Repco Home Finance was quoting at Rs 134.10, up Rs 2.15, or 1.63 percent on the BSE.
BSE Smallcap index gained 1 percent supported by the Kellton Tech Solutions, Dharamsi Morarji Chemical, Likhitha Infrastructure
Market at 1 PM
Benchmark indices were trading higher with Nifty around 15900 and Sensex added more than 600 points.
The Sensex was up 635.08 points or 1.20% at 53363.06, and the Nifty was up 194.70 points or 1.24% at 15894. About 2362 shares have advanced, 778 shares declined, and 130 shares are unchanged.
Morgan Stanley View On Sun Pharma:
Morgan Stanley has kept overweight rating on the Sun Pharmaceutical Industries with a target at Rs 1,032 per share.
Position Sun Pharma both as an absolute pharma top stock pick & a relative hedge in portfolio.
The business model & balancesheet have strengthened over past 3-4 years and cash flows appear relatively insulated against macroeconomic headwinds.
Morgan Stanley expect sales/operating profit CAGRs of 11.9%/16.8% for FY23-24, reported CNBC-TV18.
Sun Pharmaceutical Industries was quoting at Rs 844.00, up Rs 19.90, or 2.41 percent on the BSE.
Bajaj Auto to increase prices w.e.f July 1, 2022
Bajaj Auto to increase prices by up to Rs 2,000 w.e.f July 1, 2022 due to steep rise in raw material costs & chip shortage, reported CNBC-TV18.
Punit Patni, Equity Research Analyst, Swastika Investmart:
The recently announced acquisition of Blinkit by Zomato Ltd. is expected to add to its woes of high operating losses. The Blinkit is synergistic to Zomato’s food delivery business and the management expects the business to grow significantly in the future.
The quick commerce market, however, has become incredibly competitive, and it will take a very long time to figure out the unit economics and turn profitable.
Further, the current markets are not conducive for businesses that a growing without showing profits. Thus we believe that this company is suitable only for investors having a high-risk appetite and a long-term view.
BSE Oil & Gas index rose 1 percent led by the ONGC, Gujarat Gas, IOC
Hikal in Focus
The Hon'ble Bombay High Court vide its order dated June 23, 2022 has set aside the Maharashtra Pollution Control Board (MPCB) direction and has directed MPCB to grant permission to Hikal, to re-start manufacturing activities at the company's manufacturing Unit located at MIDC Taloja within a week from the date of the order.
Vedanta preparing biggest-ever rupee bond sale
Vedanta is preparing its biggest-ever rupee bond sale, Bloomberg reported.
Vedanta is seeking commitments for as much as Rs 4,809 crore of 10-year notes. The company is planning to use proceeds to prepay or repay debt & for capital spending, it added,
USFDA begins inspection of Cipla’s Pithampur unit
USFDA begins inspection of Cipla’s Pithampur unit today. Inspection is likely for Cipla’s US application for a dry powder inhaler, quoting Sources, reported CNBC-TV18.
Market at 12 PM
Benchmark indices erased some of the intraday gains but still trading higher with Nifty above 15800.
The Sensex was up 461.23 points or 0.87% at 53189.21, and the Nifty was up 142.70 points or 0.91% at 15842. About 2316 shares have advanced, 771 shares declined, and 139 shares are unchanged.
RBI approves re-appointment of Rajiv Anand as Deputy MD of Axis Bank
The Reserve Bank of India has approved the re-appointment of Rajiv Anand as the Deputy Managing Director of Axis Bank. The re-appointment will be for a further period of three years.
TTK Prestige opens a store under the name Ultrafresh
TTK Prestige today announced the progress on strategic investment and business collaboration with Ultrafresh, an end-to-end modular kitchen solutions provider.
TTK Prestige has taken a strategic stake of over 40% in the equity Ultrafresh to forge the business collaboration between TTK Prestige and Ultrafresh.
As part of the business collaboration Ultrafresh Modular Solutions have opened their first experience centre in Koramangala, Bengaluru.
BSE Capital Goods index rose 2 percent led by the Timken India, AIA Engineering, KNR Constructions
BofA Securities View on Zomato
Research firm BofA Securities has kept neutral rating on Zomato with a target at Rs 82 per share.
The Blinkit deal is well flagged in advance with 7% dilutive to shareholders.
The competition impact felt over time, while breakeven delays risks.
Blinkit acquisition price is lower than the last round valuation of USD 1 billion, reported CNBC-TV18.
Nifty metals index rises 2.4 percent led by Hindalco and Vedanta, APL Apollo the sole loser in the index
Market at 11.00 AM
Indices trade positive, Sensex up around 1 percent, Nifty above 15,800
The Sensex was trading higher with a gain of 506 points or 0.96% at 53,226.68 and the Nifty was higher by 157.4 points or 1.02% at 15,860. About 2,432 shares have advanced, 694 shares declined, and 152 shares are unchanged.
Buzzing
Dr Reddy's Laboratories share price gained 2 percent intraday on July 27 after the company acquired an injectable product portfolio from Eton Pharma.
Dr. Reddy's Laboratories has acquired a portfolio of branded and generic injectable products from Deer Park, Illinois, based Eton Pharmaceuticals, Inc, company said in its press release.
The portfolio includes the Biorphen (phenylephrine hydrocholoride) Injection and Rezipres (ephedrine hydrochloride) Injection NDAs with nine separate combinations of strengths and presentations and one firstto-file approved ANDA for Cysteine Hydrochloride for the US.
Dr Reddy's Laboratories was quoting at Rs 4,366.40, up Rs 57.65, or 1.34 percent on the BSE.
Credit Suisse View on Zomato
Research firm Credit Suisse has kept outperform rating on Zomato with a target at Rs 90 per share.
The Blinkit acquisition is on expected lines and will likely raise EBITDA loss in FY23/FY24.
The company has not guided on total dark stores or near-term profitability. The annualising May 2022 EBITDA loss could reduce its FY23 adjusted EBITDA by Rs 756 crore.
The food delivery business is trending to profitability, while cash reserves ensure sufficient funding for growth initiatives in near term, reported CNBC-TV18.
At 10:45 hrs Zomato was quoting at Rs 67.40, down Rs 2.95, or 4.19 percent on the BSE.
Welspun Corp bags orders
Welspun Corp has secured various orders of around 47,000 MT amounting to Rs 600 crore.
These orders will be executed from India and the USA across the oil & gas and water sector. These include, receipt of an order for the supply of onshore coated pipes and bends for a pipeline project in Australia.
