Closing Bell: Market ends with marginal gains; IT, power, realty drag, metals shine

Nandish Shah, DVP  - Retail Research,  HDFC Securities

Nifty went nowhere after opening and remained within the range of previous session. Nifty ended with the gain of 24 points to close at 19356. Nifty managed to protect its level above 5 days EMA, placed at 19344. Bank Nifty underperformed Nifty by closing with the minor losses.

Nifty Midcap 100 and Nifty Small cap 100 Index underperformed the Benchmark Indices today where they fell by 0.38% and 0.58% respectively. Declining shares outnumbered the advancing shares as advance decline ratio stood at 0.68 on BSE, lowest since 23-June.

NSE Cash market volumes were lower as compared to last ten-day average. Amongst the sectoral Indices, Nifty IT, Media and Reality were top losers while Nifty Metal and oil & gas Index ended in the green.

Nifty seems to have stuck in the trading range of 19300-19500. Breakout from this range on the either side would decide the direction for the market.

Prashanth Tapse, Senior VP (Research), Mehta Equities

Following the stellar listing of the ideaForge on Friday, Cyient DLM to got healthy listing above 45% as per our estimates, hence we continue to advice allotted investors to book profits and if anyone wish to buy fresh should wait and watch for counter as markets may see some pressure to sustain at higher levels. The issue was reasonably priced when compared to its listed peers which are trading in the range of 35 times to 95 times such as Syrma SGS Technology, Kaynes Technology, DCX Systems and Avalon Technology, post listing it can match the peer’s valuations hence upside from here would be limited. However, we see few risks on lower margins and high dependency on few key clients as a concern.

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas:

The Nifty witnessed a range-bound trading session and consolidated within the range (19524 – 19303) of the previous trading session. It closed in the green by ~24 points. Today the Nifty opened in the green however it was unable to sustain at higher levels. It faced resistance in the zone 19430 – 19450 where the 20-hour moving average is placed. On the daily charts, we can observe that the Nifty is in the process of retracing the rise it has witnessed in the previous couple of weeks. The crucial Fibonacci retracement level and gap area coincide around 19200 – 19180 which could act as a support zone from a short-term perspective and on the upside 19520 – 19550 shall act as an immediate hurdle zone from a short-term perspective. The daily momentum indicator has a positive crossover and thus this dip should be bought into.

As far as Bank Nifty is concerned, the Index continued to trade with a negative bias. It witnessed follow-through selling pressure and filled the gap area between 44800 – 44900 created on the 3rd of July, 2023. The Bank Nifty is in the process of retracing the rise it witnessed in the last couple of weeks and there are multiple supports in the form of Fibonacci retracement levels around 44840 – 44587 which could arrest the downside. The correction is providing an opportunity for an entry and this is a dip that should be bought into.

Ajit Mishra, SVP- Technical Research Religare Broking

Markets oscillated in a narrow range and ended marginally in the green amid mixed cues. The tone was positive in the early hours, thanks to the strong up move in Reliance however pressure in the other heavyweights capped the upside and trimmed the gains as the session progressed. Consequently, the Nifty index ended closer to the middle of the day’s range at 19355.90 levels.

Meanwhile, the sectoral trend was mixed wherein metal and energy showed resilience while IT, realty, and FMCG drifted lower. The broader indices too witnessed a dip and shed nearly half a percent.

Indications are in favor of further consolidation in the index and the recent dip in the US markets is also weighing on the sentiment. It is thus advisable to limit leveraged positions and wait for the resumption of the trend.

Shrikant Chouhan, Head of Research (Retail), Kotak Securities

Profit-taking in late trades erased most of the early gains as key indices ended with modest gains in a volatile trading session. Hiccups could be seen in the run up to the US monetary policy meeting later this month. There are enough indications that the Fed would go for a rate hike this month to keep inflation under control.

Technically, the Nifty found resistance near 19435 while 19330 acted as a key support zone. For day traders, a fresh uptrend rally is possible only after the 19435 breakout, above which the market could rally till 19500-19525. On the other hand, a fresh sell off could be seen after the dismissal of 19330 and below the same, the index could slip till 19250-19200.

Vinod Nair, Head of Research at Geojit Financial Services

Indian equities faced broad-based weakness, but the benchmark managed to stay marginally positive with the support of strong buying in heavyweight stocks. The weakness was led by IT stocks, as the sector is set to kick off the Q1 result season with expectations of soft earnings. Additionally, cues from the US markets are unfavourable, as concerns about another rate hike persist despite expectations of a fast cooling of future US CPI inflation data.

Rupee Close:

Indian rupee closed 17 paise higher at 82.57 per dollar versus previous close of 82.74.

Market Close:

Benchmark indices ended with marginal gains in the volatile session on July 10.

At close, the Sensex was up 63.72 points or 0.10% at 65,344.17, and the Nifty was up 24.10 points or 0.12% at 19,355.90. About 1454 shares advanced, 2123 shares declined, and 144 shares unchanged.

Reliance Industries, Tata Steel, JSW Steel, HDFC Life and Bharti Airtel are among the top gainers on the Nifty, while losers were HCL Technologies, Titan Company, Power Grid Corporation, TCS and HUL.

Except metal (up 1.8 percent), all other sectoral indices ended in the red.

BSE midcap index down 0.45 percent and smallcap index shed 0.25 percent.

Stock Market LIVE Updates | L&T and Navantia sign a teaming agreement for project 75 (India) submarine program

Larsen & Toubro and Navantia, Spain signed a Teaming Agreement (TA) today for the purpose of submission of a techno-commercial bid for the Indian Navy’s prestigious P75 (India) submarine program.

As per the agreement, Navantia would carry out the design of P75(I) submarines based on its S80 class of submarines, the first of which was launched in 2021 and is undergoing sea trials prior to its delivery to Spanish Navy at the end of 2023.

Stock Market LIVE Updates | L&T and Navantia sign a teaming agreement for project 75 (India) submarine program

Larsen & Toubro and Navantia, Spain signed a Teaming Agreement (TA) today for the purpose of submission of a techno-commercial bid for the Indian Navy’s prestigious P75 (India) submarine program.

As per the agreement, Navantia would carry out the design of P75(I) submarines based on its S80 class of submarines, the first of which was launched in 2021 and is undergoing sea trials prior to its delivery to Spanish Navy at the end of 2023.

Stock Market LIVE Updates | JPMorgan View On Tata Motors 

-Neutral call, target raised to Rs 540 per share
-JLR wholesales in-line; stock baking optimistic outcomes
-JLR reported Q1 wholesales (ex-China JV) at 93,300 units, up 30 percent YoY
-Retail also grew sharply, up 29 percent YoY, order book declined QoQ

Sensex Today | BSE FMCG index down 0.6 percent dragged by Associated Alcohol and Breweries, S H Kelkar & Company, Chaman Lal Setia Exports

Stock Market LIVE Updates | Morgan Stanley View On FSN E-Commerce Ventures (Nykaa)

-Overweight call, target at Rs 184 per share
-Q1 revenue growth to be in mid-twenties YoY
-BPC vertical NSV grew in low twenties, aided by strong urban demand
-Discretionary spending to improve with the revival of seasonal demand

Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas:

Indian Rupee appreciated on a positive tone in domestic markets and weak US Dollar. US Dollar declined on Friday on disappointing non-farm payrolls report. The US employers added 209,000 jobs, trailing the forecast of 225,000 jobs. However, the unemployment rate fell to 3.6%, in line with estimates. Dollar also fell on a surge in Pound and Euro which rallied on the back of rising bond yields.

We expect Rupee to trade with a negative bias on risk aversion in global markets and rising bond yields in the major global economies and expectations of further rate hikes to tame inflation. However, some softness in the US Dollar and sustained FII inflows may support Rupee at lower levels. Market participants may remain cautious ahead of India’s inflation and IIP data and US inflation and PPI data this week. We expect the USDINR spot to trade between 82.20 to 83.20 in the near term.

Stock Market LIVE Updates | Citi View On Kalyan Jewellers 

-Buy rating, target at Rs 170 per share
-Growth journey has just started
-On margin, gross margin at showroom level has improved YoY
-Store expansion momentum remained strong

Kalyan Jewellers India was quoting at Rs 162.75, up Rs 0.50, or 0.31 percent.

Sensex Today | Market at 3 PM

The Sensex was up 63.05 points or 0.10% at 65,343.50, and the Nifty was up 25.20 points or 0.13% at 19,357. About 1351 shares advanced, 1980 shares declined, and 120 shares unchanged.

Stock Market LIVE Updates | Citi View On HDFC Bank

-Resume coverage with buy call, target at Rs 2,200 per share
-Significant penetration headroom available to drive >20 percent CAGR in home loans
-Portfolio rebalancing & increased addressable market opportunity
-Deposit penetration to deepen
-Post-merger, estimate advances growth of 18 percent over FY23-26, NIM of 3.8 percent
-RoA will hold near 1.9-2.0 percent, while RoE will be dragged

Stock Market LIVE Updates | Balkrishna Industries sheds 3% on bleak growth outlook by brokerages

Shares of Balkrishna Industries (BIL) declined more than 3 percent in early trade on June 10 after brokerage firms suggested that persistent near-term headwinds and channel de-stocking could potentially dent volume growth in the coming quarters.

Brokerage firm Nomura has said that while channel inventory is still higher than normal, end-user demand is holding up. The broking firm has said that the stock trading at 16x FY25 EV/EBITDA (earning before interest, tax depreciation and amortization) is expensive, given the risks to recovery. Nomura has a 'reduce' rating on the stock. Read More

Sensex Today | Gold awaits fresh cues as focus turns to US inflation print

Gold prices were flat on Monday as investors traded cautiously ahead of U.S. inflation data expected later this week to gauge the impact of interest rate hikes and if more policy tightening was on the cards.

Spot gold was little changed at $1,922.99 per ounce by 0837 GMT. U.S. gold futures were down 0.2% to $1,928.10.

Stock Market LIVE Updates | SpiceJet shares fly 3% higher on plans to raise fresh capital

SpiceJet shares surged 3 percent on Monday after the company announced its plan to raise fresh capital.

“The meeting of the Board of Directors of the company will be held on July 12 to consider and approve, inter-alia, options for raising fresh capital through issue of equity shares and/or convertible securities on preferential basis,” said SpiceJet in an exchange filing. Read More

Stock Market LIVE Updates | JPMorgan View On Reliance Industries

-Overweight call, target at Rs 2,960 per share
-Implied diluted valuation & independent valuation are in excess of USD 90 billion
-Value Reliance Retail at an EV of USD 112 billion & implied equity value would be USD 102 billion

Sensex Today | SEBI files 41 pages affidavit in Supreme Court in Adani-Hindenburg case

Stock Market LIVE Updates | Utkarsh Small Finance sets price band of Rs 23-25 for its IPO

Utkarsh Small Finance Bank’s Rs 500 crore initial public offering to open on July 12 and close on 14 July. The lender has set a price band at Rs23 to Rs25 per equity share. The anchor investors bidding will start on July 11.

The allotment is expected on July 19 and credit of shares to demat accounts to allottees will be on July 20. The stock is expected to list on exchanges on July 24.

Stock Market LIVE Updates | 

Vadilal Enterprises gains 5% after buyout interest from Bain Capital

Shares of Vadilal Enterprises Ltd surged over 5 percent after Moneycontrol reported the home-grown ice cream brand has received buyout interest from a private equity firm Bain Capital. Bain Capital is eyeing a controlling stake in the combined entity of Vadilal Industries, Vadilal Enterprises and Vadilal brand. The deal values the ice cream maker at over Rs 3,000 crore.

Sensex Today | European markets trade slightly lower

The pan-European Stoxx 600 was down 0.2% in early trade, with basic resources shedding 0.8% while oil and gas stocks bucked the trend to inch 0.4% higher.

Sensex Today | Market at 2 PM

The Sensex was up 211.75 points or 0.32% at 65,492.20, and the Nifty was up 66.80 points or 0.35% at 19,398.60. About 1375 shares advanced, 1913 shares declined, and 129 shares unchanged.

Stock Market LIVE Updates | Macquarie View On FSN E-Commerce Ventures (Nykaa)

-Underperform call, target at Rs 115 per share
-Q1 update broadly in-line, expect 25 percent sales growth in Q1
-Beauty contribution margin should drive improvement in EBITDA margin to 5 percent

Stock Market LIVE Updates | PFC subsidiary incorporates SPV for transmission projects in Uttar Pradesh

Power Finance Corporation's subsidiary PFC Consulting (PFCCL) has incorporated a special purpose vehicle (SPV) - Jewar Transmission, for the transmission projects in Uttar Pradesh.

The SPV, which will take up various preparatory activities of the transmission projects, has to be to transferred the successful bidder selected through International Competitive bidding process under tariff based competitive bidding guidelines for transmission service issued by the Ministry of Power.

Stock Market LIVE Updates | ITC remains committed to implement asset-right strategy with respect to hotels business

ITC issued clarification on media reports related to demerger of hotel business, saying it remains committed to implement its ‘asset-right’ strategy with respect to the hotels business.

Sensex Today | Colin Shah, MD, Kama Jewelery

Last week the Gold prices have edged slightly higher, in the domestic market having risen to Rs 58,379.00 /10gm by 1%. Internationally, however, the prices have persisted to be below the USD 2,000/oz mark, remaining steady at USD 1919.10, with visible signs of sentiments improving.

Further hawkish interest rate guidance from the Fed threatens to bring in the fear of higher interest rates in the US, something the market is already pricing in more and more. Nevertheless, the US Fed may need to bring stability in their rate hike outlook to align these fears.

With the advent of H2 2023, there seems to be good news on the domestic front for the Gems and Jewellery industry with the launch of the Gems and Jewellery Park at Mahape in Navi Mumbai. This park will bring in Rs 40,000 crore worth of investments and was announced by the Chief Minister of Maharashtra and is expected to generate 1.2 Lakh Jobs.

Stock Market LIVE Updates | CLSA View On Tata Motors 

-Buy rating, target at Rs 690 per share
-JLR posted 30 percent YoY improvement in wholesale volume (ex-China JV) in Q1
-Management expects strong FCF generation
-Path to higher volume, margin & hence FCF remains clear
-Expect FCF of £1.5 billion/£1.7 billion in FY24/25

Stock Market LIVE Updates | Prism Johnson gets board approval for sale of 1,420.72 acres of land parcels in Andhra Pradesh

Prism Johnson has received the board approval for definitive agreements to be executed with The Ramco Cements for sale of certain freehold land parcels of 1420.72 acres at Nandyal district in Andhra Pradesh, and also for the transfer of a mining lease to The Ramco Cements. The transfer of mining lease and land parcels to The Ramco Cements is expected to be completed by July 31, 2023.

Sensex Today | Market at 1 PM

The Sensex was up 147.92 points or 0.23% at 65,428.37, and the Nifty was up 44.90 points or 0.23% at 19,376.70. About 1344 shares advanced, 1929 shares declined, and 117 shares unchanged.

Sensex Today | BSE Power index fell over 1 percent dragged by Power Grid Corporation, Adani Power, Adani Transmission

Stock Market LIVE Updates | Xchanging Solutions announces interim dividend of Rs 15 per share

Xchanging Solutions board approved recommendation of Interim dividend for the financial year 2023-24 of Rs 15 per equity share of face value of Rs 10 each (150%).

The Record date to determine those members who will be eligible to receive the payment of Interim dividend for the financial year 2023-24, subject to the approval of the members of the Company in the upcoming 22nd AGM, will be Friday, July 28, 2023.

Manish Mehta, National Head and Sales, Marketing & Digital Business, Kotak Mahindra Asset Management Company

June net numbers were a tad higher than May. Some profit booking at higher levels to maintain asset allocation is not ruled out but investors continue to keep investing through SIPs and STPs. Disciplined asset allocation is the mantra for long term wealth creation.