Closing Bell: Sensex falls 203 pts, Nifty around 23,250; IT worst hit

Indian equity indices ended lower in the volatile session on June 10 with Nifty below 23,250. The Sensex was down 203.28 points or 0.27 percent at 76,490.08, and the Nifty was down 31 points or 0.13 percent at 23,259.20.

We wrap up today's edition of the Moneycontrol live market blog, and will be back tomorrow morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices for all the global market action.

The Nifty Index encountered resistance at higher levels and was unable to close above the 23300 mark. Immediate support for the index stands in the 23000-22900 zone, with a break below this range likely to trigger aggressive selling pressure. In the near term, the index is expected to consolidate within a broad range of 23000-23500.

On June 10, Indian benchmark indices ended flat to negative after reaching an all-time high.

The Nifty, after a gap-up opening, made an all-time high at the 23,411.90 level. However, after a volatile session, it finally settled at the day's low, below the 23,250 level. If the price closes below the 23,200 level, it may see further correction down to the 23,100 and 23,000 levels. On the flip side, if the index closes above the 23,350 level, it could reach a new all-time high near 23,500 and above.

The market is expected to remain sideways and volatile within the 23,100 to 23,400 range.

Selling was observed in the auto, IT, and metal sectors, while buying was seen in the power, realty, and healthcare sectors.

The India VIX, which measures market volatility, decreased by 2.71 percent intraday, settling at 16.425, indicating reduced market fear. Regarding the Open Interest (OI) data, on the call side, the highest OI was observed at the 23,500 and 24,000 strike prices. On the put side, the highest OI was at the 23,000 strike price.

Nifty opened gap up and consolidated for the day to close in the red down ~50 points. On the daily charts we can observe that the Nifty touched a new all-time high of 23412. The Nifty has witnessed ~2100-point rally from last week. The hourly momentum indicator has triggered a negative crossover suggesting loss of momentum. Hence, there can be some consolidation in the near term and the Nifty is likely to drift towards 23160 – 23100 over the next couple of trading sessions failing to sustain can lead to a fall to 22930. On the upside 23420 – 23500 is the immediate hurdle zone.

Bank Nifty witnessed continuation of the pullback and however it faced resistance at the 50250 mark which coincides with 78.6% retracement mark. Thus, the sharp rally seems to be running out of steam and now is poised for consolidation in the near term. Crucial support 49320 – 49070 while immediate hurdle is placed at 50250 – 50350.

The Indian market currently lacks fresh catalysts following the formation of the new government at the centre, suggesting that some consolidation may occur in the near term. Institutional flows indicate a mixed trend, with FIIs gradually covering their shorts and DIIs booking profits after the market reached historic highs. Meanwhile, optimism about a rate cut is waning as US economic data points remain healthy. The FED is expected to continue its current stance. However, any dial-back of the rate cut guided earlier could test market patience.

Indian rupee ended 13 paise lower at 83.51 per dollar on Monday versus Friday's close of 83.38

Indian equity indices ended lower in the volatile session on June 10 with Nifty below 23,250.

The Sensex was down 203.28 points or 0.27 percent at 76,490.08, and the Nifty was down 31 points or 0.13 percent at 23,259.20. About 2381 shares advanced, 1176 shares declined, and 91 shares unchanged.

Top losers on the Nifty included Tech Mahindra, Infosys, Wipro, M&M and LTIMindtree, while losers were UltraTech Cement, Grasim Industries, Hero MotoCorp, Cipla and Power Grid Corp.

On the sectoral front, the IT index fell 1.5 percent, metal down 0.3 percent and oil & gas down 0.2 percent, while realty index gained 1.3 percent, healthcare up 0.7 percent and power was up 0.4 percent.

The BSE midcap index rose 0.5 percent while the smallcap index gained 1 percent.

#1 Nifty retreats after crossing 23,400 in early trade
#2 Both Nifty & Sensex hit new lifetime high at open
#3 Smallcaps outperform; India VIX cools nearly 3%
#4 NSE advance-decline ratio at 1:2

Brokerage Call | Morgan Stanley On OMCs

#1 Integrated margin are tracking approx 20-30 percent above midcycle
#2 Integrated margin should lead to re-start of earnings upgrade cycle
#3 Refining margins are recovering as well
#4 Potential re-start of daily pricing mechanism provides multiple upside

#1 Focus on market share gains & higher exports likely to drive growth
#2 Targets to become the no 2 player in passenger car radial segment by end-FY25
#3 According to management, market share rise would be led by a strong network push
#4 Market share rise would be led by better dealer profitability and product innovation
#5 Maintains that >25 percent of its revenue will come from exports in FY26E

#1 Company has entered USD 100 billion market cap club led by the success of its mobile business
#2 India now has four companies with a market cap of over USD 100 billion
#3 Strong India mobile growth backed by management execution driving this mega corp
#4 Market cap barely moved for an entire decade, has expanded since 2017 3.3x
#5 Company’s 3 drivers are high-growth scalable business, strong management & global competitive edge

MIC Electronics has received a Letter of Acceptance from the Firozpur Division of the Northern Railway Zone for the provision of coach guidance display boards at major and important stations in the Firozpur (FZR) Division.

The aggregate value of the said work order is Rs. 3,04,95,149.54.

#1 FY24 performance is testimony of its execution prowess in its core EMS business
#2 Sector tailwinds & robust backlog to drive sustainable growth in core segment
#3 New biz of OSAT & bare board PCB manufacturing to enable backward integration
#4 Revenue target of $1 bn by FY28; 75 percent to be accounted by core EMS
#5 Margins are industry leading, to further expand by 100 bps in FY25

#1 Reiterated sustaining double-digit volume growth & margin of 18-20 percent
#2 Price/mix weakness will sustain near-term
#3 Further pricing interventions will depend on RM inflation trends
#4 Despite rising competitive intensity on sector, APNT is not unduly worried
#5 Compay is focussed on strengthening its moats via ensuring effective distribution scale-up
#6 Focussed on relevant innovation & enhanced play in relatively fast-paced B2B/project segment
#7 Wider foray into affordable paints segment is off to an encouraging start
#8 Home décor foray is strategic, will help widen customer reach & strengthen brand loyalty

May 2024 saw a remarkable equity inflow of Rs 34,697 crore, an 83.42% surge from the previous month, marking 39 consecutive months of positive trends. Major contributions came from the sector and thematic categories, with the HDFC Manufacturing Fund's NFO attracting nearly Rs 9,500 crore. Additionally, SIP contributions hit a record Rs 20,904 crore, highlighting a growing trend towards disciplined, long-term investing.

Sensex Today | Nifty Bank index sheds 440 points from day's high

The initial public offering (IPO) of Le Travenues Technology, which operates the travel booking platform ixigo, received 1.32 times subscription on the first day of opening, as per BSE data.

The offer received bids for 5.7 crore shares as against 4.37 crore shares on offer.

The public issue was subscribed 4.45 times in the retail category, and 1.54 times in the Non Institutional Investors (NIIS) category, while portion of Qualified Institutional Buyers (QIBs) booked at 0.11 percent.

Shares of Andhra Pradesh-based firms surged for the fourth consecutive session as the Telugu Desam Party, led by N. Chandrababu Naidu, emerged victorious in the recently concluded Andhra Pradesh assembly polls. Read More

#1 HDFC Life: Premium Up 14%, Total APE Up 17% & Retail APE Up 23% YoY
#2 ICICI Prudential: Premium Up 33%, Total APE Up 38% & Retail APE Up 57% YoY
#3 Max Life: Premium Up 23%, Total APE Up 25% & Retail APE Up 31%
#4 SBI Life: Premium Down 2%, Total APE Up 18% & Retail APE Up 25%
#5 LIC: Premium Up 19%; Total APE Up 5% & Retail APE Up 7%

Kaynes Technology shares jumped over three percent in trade on June 10 as international brokerage Morgan Stanley bumped up its target price on Morgan Stanley maintained its 'overweight' call and raised its share price on Kaynes Tech from Rs 2,440 to Rs 3,845 per share, indicating an upside of 15 percent per share. The brokerage also raised its core EMS EPS by over 10-14 percent over FY25-26.

Equity mutual fund inflows surged 83.42 percent to a record high of Rs 34,697 crore in May, according to the data released by the Association of Mutual Funds of India (AMFI), the industry trade body for mutual funds, on June 10.

Inflows into open-ended equity funds remained in the positive zone for the 39th month in a row in May. Net inflows into equity mutual funds zoomed past the Rs 30,000 crore level for the first in May 2024, as the previous record for net inflows was Rs 28,463 crore, which was hit in March 2022. (More read)

Markets@2 | Sensex, Nifty trade higher

The Sensex was up 181.91 points or 0.24 percent at 76,875.27, and the Nifty was up 76.40 points or 0.33 percent at 23,366.60.

Among sectors, bank, FMCG, power, realty, oil & gas, healthcare indices up 0.5-1 percent.

BSE Midcap index rose 0.7 percent and Smallcap index gained 1 percent.

#1 FY25 revenue growth guidance assumes no improvement in macro versus FY24
#2 Margin improvement towards aspiration of 19-20 percent needs revenue growth pickup
#3 Recent organizational changes aimed at integrating go-to market
#4 Gen AI, pilots continue at client ends, still time before large work emerges here
#5 Disciplined capital allocation policy to continue
#6 Stable senior leadership helping drive growth

Jubilant Pharmova announced that the United States Food and Drug Administration (USFDA) has concluded an eight day audit of the Jubilant HollisterStier LLC’s contract manufacturing facility located in Spokane, Washington (USA).

The USFDA has issued 3 observations pursuant to the completion of audit. The company will submit an action plan on the observations.

Jubilant HollisterStier LLC is a subsidiary of Jubilant Pharma Holding Inc., which is a subsidiary of Jubilant Pharma Limited, Singapore, a wholly owned subsidiary of the company.

Atmastco has received letter of intent for fabrication and supply from BHEL of Rs 36 crore for supply of PG 35 Columns for NTPC LARA Project through OVM model.

Shares of Godawari Power and Ispat climbed nearly 12 percent to scale a record high of Rs 1,088.65 on June 10 after the company announced plans to consider a share buyback at its upcoming board meeting on June 15.

Sensex Today | UltraTech Cement, Hero MotoCorp, Cipla, among other Nifty50 stocks hit 52-week high

HCL Tech announced the launch of HCLTech Enterprise AI Foundry to simplify and scale enterprise AI journeys. The integrated suite of assets combines data engineering and AI with cognitive infrastructure to accelerate Generative AI (GenAI)-led transformation across business value chains.

Mafatlal Industries has entered into a Technology Transfer Agreement (ToT) with Defence Research Laboratory (DRL), Defence Research and Development Organisation (DRDO) and Ministry of Defence.

This agreement is relating to the manufacture and sale of Anti-Microbial Bed Sheets to Indian Armed Forces/ Other Govt. Agencies.

Markets@1 | Sensex, Nifty trade with marginal gains

The Sensex was up 78.41 points or 0.10 percent at 76,771.77, and the Nifty was up 53.30 points or 0.23 percent at 23,343.50. About 2446 shares advanced, 1035 shares declined, and 111 shares unchanged.

The Board of Borosil Renewables has considered and finalised the amount of fund raise through Rights Issue for an amount aggregating up to Rs 450 crores, and in this regard, approved the Draft Letter of Offer to be filed with the Securities and Exchange Board of India and BSE Limited and National Stock Exchange of India Limited for their requisite approvals.

Sensex Today | BSE IT index underperforms other sectoral indices

Sensex Today | BSE Telecom index gains 1%; GTL Infrastructure, Sterlite Technologies, Route Mobile up 5-10%

Havells India today announces its entry into the kitchen appliances market through a strategic partnership with Jumbo Group, a leading distributor of consumer electronics and technology products
in the UAE.

This alliance is set to bolster Havells product portfolio and market reach while enabling Jumbo Group to establish a significant presence in the Middle East.

The partnership will see the launch of Havells India's premier kitchen appliances, including advanced mixer grinders starting with online availability on Jumbo’s e-commerce website jumbo.ae followed by retail store distribution.

Sensex Today | BSE Midcap index rises 0.6%; New India Assurance, Bayer CropScience, Castrol, among top gainers

#1 Management reiterates an overall 6-7 percent volume growth target
#2 Reiterates at least 10 percent volume growth from the recently acquired UEPL
#3 Current APM gas allocation stands at ~70 percent
#4 APM gas shortfall is being compensated by additional HPHT volumes
#4 Rs 1,000 crore of capex that was guided for FY25, of which Rs 200 crore will be allocated to UEPL

Sensex Today | BSE Smallcap index up 1%; Wardwizard Innovations, Agarwal Industrial Corporation gain 20% each

Artson Engineering has received a Letter of Award of Rs 126.15 crore for engineering and construction of ATF Fuel Farm and Hydrant System at Guwahati International Airport.

Jash Engineering has informed that as on 1st June 2024 the total consolidated order book position of the company is Rs. 830 crore out of which orders worth Rs. 298 crore are for Indian market and orders worth Rs 532 crore are for markets outside India.

Out of the consolidated orders worth Rs. 532 crore for markets outside India, Rs 354 crore worth orders are for USA market and remaining Rs. 178 crore constitute orders for Rest of the world.

In addition to above, the order booking of Waterfront – UK, of which the company owns 80% stake, is Rs. 27 crore.

As on 1st June 2024, consolidated orders worth Rs. 38 crore have been negotiated with clients and formal purchase orders are awaited. Out of this Rs 33 crore are for Indian market and Rs. 5 crore are for projects outside India.

SIAM Cement BigBloc Construction Technologies Pvt Ltd, a joint venture between Gujarat based BigBloc Construction Ltd and Thailand’s SCG International Corporation Co., Ltd., has launched its India operations with the commercial production of its first plant in Kheda, Gujarat.

The board of directors of Gensol Engineering at its meeting held on June 10, 2024 has, approved to appoint Mr. Kuljit Singh Popli as Independent Director (NonExecutive) and to appoint Mr. Ali Imran Naqvi as an additional director (Executive) of the company.

#1 Net equity inflow at Rs 34,670.9 crore vs Rs 18,888 crore, MoM
#2 Large Cap fund inflow at Rs 663 crore vs Rs 358 inflow, MoM
#3 Small Cap fund inflow at Rs 2,724.7 crore vs Rs 2,209 crore inflow, MoM
#4 Midcap fund inflow at Rs 2,605.7 crore vs Rs 1,793 crore inflow, MoM

#1 Investing in infrastructure to drive volume growth
#2 To benefit from potential inclusion of natural gas in GST
#3 LNG in transportation could scale up in coming years
#4 Foraying into electric mobility

Despite the election-led volatility, Japanese brokerage Nomura kept its portfolio unchanged on expectations of political continuity. The brokerage projected that the frontline index Nifty 50 could breach 24,860 by the end of 2024.

Following the election outcome, the domestic markets crashed six percent as investors liquidated their holdings.

Concerns regarding political and policy stability, which could impact foreign and domestic flows, caused traders to flee to the relative safety of defensive sectors like IT, pharma and FMCG as sectors relating to favourable government policies, such as PSU and defence stocks, were in a downward trajectory.

However, Nomura said: "Through the course of the past week, we think the concerns have abated. The composition of the cabinet over the weekend also indicates policy continuity at the moment." Read More

Shares of Jindal Stainless rose 2.5 percent after T4 rifle, developed jointly by Jindal Defence and Brazilian firm Taurus Arms, successfully cleared a series of Indian Army’s stringent tests, adding significant firepower to the country’s defence manufacturing and modernization efforts, according to a report.

This takes the weapon one step closer to being selected for a contract to supply 425,000 rifles to the Indian Army, according to a report by the online portal Indian Defence Research Wing.

Stock Market LIVE Updates | PSU stocks sustain rebound; BSE PSU index up 1.2%

Shares of Heritage Foods skyrocketed 10 percent to hit a 52-week high of Rs 727.35 on June 10 after a large deal worth Rs 319.60 crore took place on the exchanges.

Around 44 lakh shares, making up a 4.8 percent stake in the company changed hands on the exchanges in a large deal. The transaction was executed at an average price of Rs 725 apiece, a premium of around 10 percent from the previous close. Moneycontrol could not immediately ascertain the parties involved in the transaction.

Shares of Paytm parent One 97 Communications extended previous session's gains, rising over 4 percent on June 10. The stock has rallied 14 percent in the last two sessions as investors showed interest after a revision in the circuit filter.

Recently, NSE revised the circuit filter of Paytm to 10 percent from 5 percent earlier.

Paytm is among a dozen of stocks that could enter the futures and options (F&O) segment if the proposed revision in eligibility criteria for F&O stock selection is applied, Nuvama Institutional Equities said in a note.

Notably, the market regulator SEBI has come out with a consultation paper to seek comments and inputs from all stakeholders on updating eligibility criteria of stock derivatives in line with the market growth. Read More

Markets@11 | Sensex, Nifty trade flat amid volatility

The Sensex was up 121.51 points or 0.16 percent at 76,814.87, and the Nifty was up 61.90 points or 0.27 percent at 23,352.10. About 2407 shares advanced, 1003 shares declined, and 94 shares unchanged.

Vakrangee Limited (VL), has entered an agreement with Winiin Taxscope Private Limited (Tax2win) for offering Income Tax Return Filing Services, GST Registration / Return Services and Other Value added Services across Pan India through the Vakrangee Kendra network.

Castrol India unveiled an exciting range of products within the Castrol EDGE line.

This premium and advanced engine oil, designed for on demand performance, now includes three new variants tailored for the passenger car segment, addressing the evolving needs of automotive consumers.

Sensex Today | UltraTech Cement, Tata Steel, among other hit 52-week high

Sensex Today | Nifty Smallcap 100 index outperforms 

Shares of Kronox Lab Sciences made a healthy debut on the bourses on June 10 after they listed at Rs 164.95 on the NSE, marking a premium of 21.2 percent over the issue price of Rs 136.

The positive listing for the fine chemicals maker was aligned with market expectations as trends in the grey market had earlier indicated a debut with around 22-30 percent premium for the stock.

Meanwhile, the company's Rs 130-crore public offer had also received a strong response from investors. The public offer was subscribed over 117 times, with NIIs being the frontrunners, bidding 302 times their allotted quota. QIBs bought 89 times while retail investors bid 54.23 times the reserved portion. Read More

Sensex Today | Nifty metal index down 0.5%; Vedanta, Welspun Corp fall 3% each

Sensex Today | BSE Information Technology index down nearly 2%; MphasiS, Coforge, among major losers

Wardwizard Innovations & Mobility Limited (WIML) has secured a significant order worth USD 1.29 billion from Beulah International Development Corporation.

With this, WIML will deliver products from its existing portfolio, including the electric two-wheelers, three wheelers in commercial and Passenger Vehicles segment and develop four-wheelers for commercial vehicles for Philippines markets.

This order is part of a strategic collaboration, formalized through a Memorandum of Understanding (MoU), to revolutionize the public transportation system in the Philippines with electric vehicles.

Sensex Today | Nifty Realty index up 1%; Prestige Estate, Sunteck Realty, Brigade Enterprises up 2% each

AXISCADES Technologies has announced the commencement of delivery of a significant number of Man Portable Counter Drone System (MPCDS) to the Indian Army.

#1 Large hinterland and regular service calls from some South East Asian Ports
#2 Company sees synergies with its ports assets at Colombo And Vizhinjam

Rail Vikas Nigam (RVNL) share price was trading marginally lower in the early trade on June 10 after the company emerged as the lowest bidder (L1) from Southern Railway.

The company has informed that M/s KRDCL-RVNL Joint Venture emerges as the lowest bidder (L1) from Southern Railway for provision of automatic signalling on Ernakulam JN(ERS) - Vallattol Nagar (VTK) section on B-route of Thiruvananthapuram division in Southern Railway," company said in its press release.

The total contract value is Rs 156,47,03,304.52 in which RVNL and KRDCL shares stand at 49 percent and 51 percent, respectively.

The said contract is to be executed in 750 days.

Sensex Today | BSE Power index up 1%; Power Grid, Adani Power, Adani Energy up 2-3%

JSW Steel reported consolidated Crude Steel production for the month of May’24 at 20.98 Lakh tonnes.

The Crude Steel production was 4% lower YoY mainly due to a planned maintenance shutdown for one of the Blast Furnaces at Dolvi. The Blast Furnace has been restarted in the 1st week of June 24.

Capacity utilisation at Indian Operations stood at 86% for May’24.

Pavna Industries has acquired a land parcel of 4335 sq. meters at the Integrated Industrial State, Pantnagar, Uttarakhand for its upcoming greenfield plant that will primarily cater to the demand of die cast components.