Closing Bell: Sensex up 204 pts, Nifty at 23,400; capital goods, realty, IT rally

Indian benchmark indices ended higher for the third straight session on June 13. The Sensex was up 204.33 points or 0.27 percent at 76,810.90, and the Nifty was up 75.90 points or 0.33 percent at 23,398.90.

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.

Markets remained range-bound for yet another day, closing marginally higher in line with the ongoing trend. After an initial gap-up, the Nifty fluctuated within a narrow band, ultimately settling at 23,399.95. Sector-wise, a mixed trend persisted, with realty and IT sectors leading gains while FMCG and energy sectors lagged. Broader indices outperformed, each rising over half a percent.

We are seeing a time-wise correction in the Nifty index, with indications suggesting the current trend will continue. We reiterate our recommendation to focus on stock-specific trading, particularly in themes such as agriculture-related, sugar, chemicals, and select defense stocks for long positions.

After commencing the weekly expiry day at record levels, the Index quickly wiped off part of its gains in the opening trade itself and oscillated in a thin range throughout the day to settle at 23,398.90 with gains of 75.95 points.

Realty space held its morning gains to become the top performer of the day followed by IT; and on the flip side, the Media segment witnessed profit booking correction after its recent rally.

Defense and Sugar counters were the day's flavor as they regained their lost momentum. Mid and Smallcaps advanced by ~0.60% each and extended their streak of outperformance.

Higher levels played their part well as once again, the Index formed a Bearish candle at record levels, and on the hourly timeframe, a bearish divergence was spotted which suggests the loss of its positive momentum. The levels of 23,480 and 23,300 will be considered as resistance and support respectively.

Indian rupee ended flat at 83.54 per dollar on Thursday versus Wednesday's close of 83.54.

Indian benchmark indices ended higher for the third straight session on June 13.

The Sensex was up 204.33 points or 0.27 percent at 76,810.90, and the Nifty was up 75.90 points or 0.33 percent at 23,398.90. About 2048 shares advanced, 1371 shares declined, and 80 shares unchanged.

Shriram Finance, HDFC Life, Divis Labs, M&M and Titan Company were among the top gainers on the Nifty, while losers included HUL, Power Grid Corp, Axis Bank, Britannia Industries and Eicher Motors.

On the sectoral front, Capital Goods and Realty were up 2 percent each, and Information Technology index rose 1 percent, while Media index shed 1 percent and FMCG index fell 0.6 percent

BSE Midcap and Smallcap indices up nearly 1 percent each.

Sensex Today | Nifty Pharma index up 0.5%; Divis Labs up 3%

#1 Management aims for flows under monthly sips to form 1 percent of its AUM
#2 SIP flow would lend further stability to AUM growth
#3 Per Management, competition remains intense
#5 Company has focused on delivering fund performance to drive sales

#1 Reiterated its guidance for doubling AUM in next three years
#2 Growth will be driven by secured/unsecured business loans (SME)
#3 Consumer loans to return to growth in 1-2 quarters
#4 On merger, management expects to complete necessary approvals process over next 6-9 months

Bartronics India has announced the renewal of its current contract on financial inclusion project with Aryavart Bank for an additional one year.

#1 Management expects ~20 percent loan growth in FY25
#2 Loan growth should result in achieving target of doubling FY22 loan book by FY25
#3 Management expects NIM to remain range-bound
#4 Expects Fee income to augment revenue growth in FY25
#5 Management guided for 1.2-1.4 percent credit cost in FY25, largely driven by lower write-offs
#6 Company expects 15-20 bps improvement in revenue (From Fee Income)
#7 Expects 15-20 Bps operating cost improvement (Productivity Led)
#8 Expects 15-20 Bps improvement in credit cost (Lower Write-Offs)

#1 Target Rs 1,350
#2 Management expects ~25 percent loan growth for vehicle finance as well as the overall loan book
#3 Expects NIM to remain stable if not improve in FY25
#4 Expects operating costs to be sustained at current levels
#5 Expanding in new geographies and new products
#6 Expects credit cost to be higher YoY in Q1FY25 owing to heat wave and elections
#7 Overall management expects to drive PBT growth in-line with AUM growth in FY25
#8 Sustain the 3.4 percent reported FY24 pre-tax ROA in FY25 as well

Indian Rupee appreciated by 0.04% today as domestic markets touched fresh all-time highs and upbeat macroeconomic data from India. India’s CPI rose 4.75% y-o-y in May 2024 versus 4.83% in April 2024. Industrial production increased by 5% in April 2024 versus 4.9% in March 2024. A soft US Dollar and FII inflows also supported the Rupee. US Dollar declined on Wednesday on lower-than-expected inflation. However, a no-change in FOMC monetary policy and hawkish commentary by the Fed helped recover initial losses. The dot plot showed just one rate hike in 2024.

We expect Rupee to trade with a slight positive bias on positive tone in the domestic markets and fresh foreign inflows. However, expectations of a recovery in the US Dollar amid rising odds of a further delay in rate cut may cap sharp upside. Traders may take cues from weekly unemployment claims and PPI data from the US. USDINR spot price is expected to trade in a range of Rs 83.20 to Rs 83.80.

#1 Pipe realisation to improve as PVC prices rise
#2 Pipe volume remains healthy
#3 Bathware to turn EBIT positive in FY25

Shriram Finance stock was trading 4% higher at Rs 2,670 apiece on BSE taking its market valuation to Rs 1 lakh crore for the first time ever. The scrip has jumped 30.39% in year-to-date basis.

The shares touched 52-week high of Rs 2,677.40 today.

Sensex Today | BSE Midcap index gains 0.5%; Oracle Financial Services Software surges 9%

PNB Housing said that its board will consider raising of funds up to Rs 10,000 crore via NCDs on private placement basis in one or more tranches on June 18.

#1 RBI's special audit concluded sooner than expected
#2 Await RBI's response, but probability of earlier resolution of ban has increased
#3 With gold loan book unwinding fast, portfolio rebuild after ban is lifted could take time
#4 If ban is lifted by end-Q2, estimate muted FY24-26 EPS CAGR & RoE of 13-14 percent (FY24 20 percent)
#5 Liquidity concerns have eased post rights issue
#6 Downside risk to valuation is lower; faster normalisation of business key to re-rating

Bank Nifty has been trading in a sideways to consolidative momentum for the past three sessions. At 1 pm on June 13, Bank Nifty was trading at Rs 49,960, up 65 points or 0.13 percent. "Bank Nifty seems to be in consolidation momentum over the past few trading sessions. One should wait and watch, as it has not given any hints of a strong directional move. Only when key supports or resistances are breached should one take a trade for this weekly expiry," said Shijumon Anthony, a derivatives trader. READ MORE

Axis Bank has informed that Sumit Bali, Group Executive – Retail Lending, wishes to pursue alternate career opportunities outside the bank and has resigned from the role on June 12, 2024.

Bimal Bhattacharyya, will be taking up another role within the Bank on completion of his tenure as Chief Compliance Officer of the Bank at close of business hours on June 13, 2024.

Anuranjan Kumar currently working as Head – Operational Health and Control at the bank has been appointed as Chief Compliance Officer of the Bank for a period of three years with effect from June 14, 2024 up to June 13, 2027

Markets@2 | Sensex, Nifty trade higher

The Sensex was up 272.35 points or 0.36 percent at 76,878.92, and the Nifty was up 84.20 points or 0.36 percent at 23,407.20.

HDFC Life, Divis Labs, Shriram Finance, Titan Company and M&M were among the top gainers on the Nifty, while losers were HUL, Eicher Motors, SBI Life Insurance, Britannia and Tata Consumer.

Top Sectoral Losers: Telecom, PSU Bank, FMCG, Media
Top Sectoral Gainers: Auto, Capital Goods, IT, Pharma, Realty

Oracle Financial Services stock jumped 10% to Rs 9,553.45 apiece on BSE after the company's US parent reported strong quarterly results.

Oracle’s revenue increased 3% year over year during the quarter, which ended on May 31, according to a statement. Net income, at $3.14 billion, or $1.11 per share, was down from $3.32 billion, or $1.19 per share, in the year-ago quarter.

The cloud services and license support segment generated $10.23 billion in revenue, up 9% and slightly below the Street Account consensus of $10.29 billion.

The ixigo IPO share allotment will be finalised on June 13. Investors who applied for the issue can check the ixigo IPO allotment status on the registrar's portal, Link Intime India Pvt Ltd.

The subscription for the ixigo IPO began on June 10 and concluded on June 12. By the final day of bidding, the IPO was subscribed 98.34 times.

Non-institutional investors subscribed the IPO 110.53 times, institutional investors 106.73 times, and retail investors 54.85 times on the final day. It was the 10th most subscribed IPO of 2024. Read More

#1 NCLT approves merger of GMR Airport, existing airport platform, with GIL
#2 Merger will happen in step approach & GIL will continue as the listed entity
#3 Scheme will become effective upon certified copy of order is filed with Roc
#4 Followed by share issuance (to ADP) & then listing of new shares
#5 It may take 1-1.5 months to reflect on exchanges

Shares of Exide Industries gained over a percent to hit a fresh record high of Rs 549 on June 13 afternoon trade following the company's Rs 75 crore investment in Exide Energy Solutions Limited (EESL), an existing wholly subsidiary.

The latest capital infusion will amount to the the total investment made by the battery major at Rs 2,452 crore, the company said in a regulatory filing on June 12.

The subsidiary is involved in the manufacturing battery cells of advanced chemistry as well as assembling, selling battery modules, battery packs and other related activities. Read More

Sensex Today | BSE Auto index up 0.5%; Tube Investment, Bosch, Sundram Fasteners among top gainers

The Company has executed a share purchase agreement to acquire 100 percent equity interest in Augmento Labs subject to the terms and conditions set out in the Agreement. Augmento Labs will become a wholly owned subsidiary of the Company on closure of the transaction.

News Alert | 53rd meeting of the GST Council will be held on June 22 in New Delhi

The Nifty index remained stable around the 23,300 level for the third consecutive day. We expect this consolidation to continue, and a significant directional move is expected only if the index surpasses the 23,400-23,500 range.

For today, Nifty faces strong resistance at 23,500, where the corresponding Call option strike has a notable open interest of approximately 75 lakhs shares. On the Put side, the 23,200 strike shows substantial open interest of around 63 lakhs shares. Regarding the Bank Nifty, there is resistance at 50,200, with the potential for a decline to 49,600. A breach of the 49,600 level could further lower the index to around 49,100.

Sensex Today | Nifty Information Technology index up 1%; Coforge, LTIMindtree, Mphasis among top gainers

Kotak Mahindra Life Insurance Company announced its corporate agency partnership with Mahindra & Mahindra Financial Services. The partnership will benefit over 10 million customers of Mahindra Finance by offering a wide range of tailor-made life insurance solutions provided by Kotak Life.

#1 Witnessed record footfall across stores
#2 Zudio is on its journey to becoming one of India's biggest lifestyle brands
#3 Star Bazaar will be the third engine of growth, 20-25 new stores in FY25
#4 No plans to demerge businesses given the back-end integration of the formats
#5 Will enter international markets by opening handful of stores

The IRDA has issued the final master circular on life insurance products, significantly reducing surrender charges on traditional savings plans. We note that the final guidelines are somewhat more favorable than the earlier draft.

Based on our preliminary calculations, surrender income could decrease by approximately 55-70%. It's too early to quantify the impact on the Value of New Business (VNB) margin, as insurance companies might offset this by adjusting distributor terms or making changes to internal rate of return (IRR) calculations. While the valuation of the insurance sector remains supportive, investors are looking for stability and clearer visibility.

CARE Ratings has upgraded the long-term rating for bank facilities of JK Tyre to CARE AA- from CARE A+ and reaffirmed the short-term bank facilities rating of CARE A1+.

Sensex Today | BSE Capital Goods index up 1%; Elgi Equipments, Praj Industries, Siemens up 4% each

Kalpataru Projects International has raised Rs 300 crore by allotment of 30,000 NCDs of the face value of Rs 1,00,000 each on private placement basis.

Markets@12 | Sensex, Nifty trade higher; media stocks drag

The Sensex was up 252.98 points or 0.33 percent at 76,859.55, and the Nifty was up 73.40 points or 0.31 percent at 23,396.40. About 1952 shares advanced, 1368 shares declined, and 81 shares unchanged.

CAMSRep (CAMS Insurance Repository Services Limited), a wholly owned subsidiary of Computer Age Management Services and a leading Insurance Repository launches Bima Central, a revolutionary onestop platform for simplifying insurance portfolio management.

Some of the key rating drivers include its dominant in the forex business & strong brand equity in travel related services. The limited debt in the company will also aid healthy capital structure and high customer advances will support liquidity, the credit ratings agency added.

Stock Market LIVE Updates | Nifty Midcap 100 index outperforms benchmark Nifty 50 index

The Indian market is poised to outperform China for the fourth consecutive year, driven by strong domestic earnings, according to Jonathan Garner, Chief Asia and Emerging Markets Equity Strategist at Morgan Stanley, in an interview with Moneycontrol. Garner attributes this outperformance to India's robust earnings growth environment, with at least 15 percent dollar earnings per share (EPS) growth, compared to China's stagnant EPS growth over the past decade. READ MORE

#1 NCLT approves merger of GMR Airport, existing airport platform, with GIL
#2 Merger will happen in step approach & GIL will continue as the listed entity
#3 Scheme will become effective upon certified copy of order is filed with Roc
#4 Followed by share issuance (to ADP) & then listing of new shares
#5 It may take 1-1.5 months to reflect on exchanges

The company has appointed Ruth Mary Chithra. J. as Chief Financial Officer (CFO) and Key Managerial Personnel (KMP) of the company.

The board noted the resignation of Yash Vardhan Bhandari as Chief Financial Officer (CFO) and Key Managerial Personnel of the company w.e.f. 12% June, 2024.

Markets@11 | Sensex, Nifty trade higher; Realty up 2%

The Sensex was up 198.13 points or 0.26 percent at 76,804.70, and the Nifty was up 56.20 points or 0.24 percent at 23,379.20. About 2067 shares advanced, 1187 shares declined, and 103 shares unchanged.

BSE Midcap and Smallcap indices up 0.5 percent each.

Among sectors, realty index up 2 percent, IT index up 1 percent, while media index shed 1 percent.

Trent remains a 'Buy' for Motilal Oswal with a target of Rs 5,500, as it is outperforming peers despite seeing muted demand in the discretionary category, the brokerage said in a note on June 13.

Motilal Oswal note said that Trent has gained market share compared to rivals, particularly in the value apparel segment. Trent's strong performance comes even as it is aggressively expanding the store presence. Read More

Brokerage Call | Revised SV norms appear negative: Morgan Stanley

#1 Revised SV norms appear negative Vs norms in March, but likely manageable
#2 IRDAI’s special SV regulations, broadly in-line with recent news reports
#3 Net impact on VNB margin is likely to be negative
#4 Initial conversations suggest insurers will take action to mitigate
#5 Await further commentary

Sensex Today | Nifty Realty index outperforms other sectoral indices

#1 Status quo on discretionary demand
#2 Deal pipeline remains strong
#3 Deals won in recent quarters are converting into revenues
#4 Showed confidence on project maximus supporting FY25 margin outlook

Sensex Today | Nifty Midcap 100 outperforms Nifty50

Shares of South-based realty firm Sobha jumped over 5 percent on June 13 after the company board greenlit the offer and issuance of equity shares for Rs 2,000 crore through a rights issue. The price of the rights issue has been fixed at Rs 1,651 per equity share, a discount of 25 percent, the firm said.

The rights issue will open on June 28 and will close on July 4. Sobha said six rights equity shares will be issued for every 47 fully paid-up equity share of the company held by the eligible equity shareholders. Read More

Sensex Today | BSE Midcap index hits fresh high of 45,576.53

Sensex Today | BSE Smallcap index hits fresh high of 50,683.17

Dr Reddy's Laboratories share price trade flat after the company's arm signed licence agreement with US-based Ingenus Pharmaceuticals, LCC.

Dr. Reddy's Laboratories, Inc., a step down wholly owned subsidiary of the company and Ingenus Pharmaceuticals, LLC, have entered into license agreement pursuant to which Dr. Reddy’s USA has licensed from Ingenus, the exclusive rights to commercialize Cyclophosphamide Injection RTD (500 mg/2.5mL; 1g/5mL; 2g/10mL) in the United States.

Sensex Today | Nifty Media index down 1%; Dish TV, Zee Entertainment, Sun TV among major losers

Bondada Engineering share price gained 5 percent on June 13 after the company received a letter of award (LoA) from NLC India.

NLC India has granted a work order to Bondada Engineering for balance of system (BOS) work for setting up 600MW Grid Connected Solar Power project including the O&M for three years after SCOD at Khavda, Gujrat amounting to Rs 9,39,39,76,731 (Including GST).

The contract is to be executed in 15 months from the date of LoA.

Sensex Today | BSE Information Technology index up 1%; Oracle Financial Services Software, Intellect Design Arena up 6% each

Gensol Engineering has emerged as a successful bidder for 250 MW/500 MWh standalone Battery Energy Storage Systems (BESS) project from Gujarat Urja Vikas Nigam Limited (GUVNL).

Arvind has informed that the strike has been called off by the workers and operations of the company at Santej plant which were partially impacted due to strike are getting to normalcy.

The company has estimated potential loss of revenue of around Rs 180-200 crore (about 2 percent of consolidated revenue of FY2024) and reduction in EBIDTA of about Rs 60-65 crore (about 7 percent of consolidated EBIDTA of FY2024).

The company has acquired additional 4.6 percent equity stake in IL JIN Electronics (India), from existing shareholder of IL JIN, Hyun Chul Sim, on 12 June 2024.

With this acquisition, company's stake increased to 90.2 percent from 85.6 percent.

The Company has executed a share purchase agreement to acquire 100 percent equity interest in Augmento Labs subject to the terms and conditions set out in the Agreement. Augmento Labs will become a wholly owned subsidiary of the Company on closure of the transaction.

Sensex Today | Nifty FMCG index down 0.5%; Marico, Dabur, Godrej Consumer, among major losers

Whirlpool of India), subsidiary of Whirlpool Corporation joined hands in a new marketing alliance with Surf Excel, a leading brand of Hindustan Unilever Limited (HUL) to transform and enhance the laundry experience for consumers in India.

Paytm shares edged higher on June 13 as the fintech's parent One97 Communications will now focus on distribution of insurance products of other insurers, after IRDAI accepted Paytm General Insurance's registration withdrawal application, the company informed stock exchanges on June 13.

In Another development, Samsung launched flight, bus, movies and events ticket bookings on Samsung Wallet, in partnership with One 97 Communications Limited that owns the Paytm brand.

Sensex Today | Nifty Realty up 1.5%; Sobha, Prestige Estate among major gainers

Green Motion International has selected RateGain as its preferred revenue management partner for its franchisee network spread across 650 locations in 73 countries worldwide.

Sensex Today | LIfe Insurance shares in focus

The Indian indices opened at fresh record high on June 13 with Nifty above 23450.

The Sensex was up 379.66 points or 0.50 percent at 76,986.23, and the Nifty was up 118.00 points or 0.51 percent at 23,441.00. About 2123 shares advanced, 346 shares declined, and 107 shares unchanged.

Nestle, Divis Labs, HDFC Life, Shriram Finance and LTIMindtree were among major gainers on the Nifty, while losers were HUL, Britannia, Tata Consumer and ICICI Bank.

There is good news on the inflation front, both in the US and in India. In US May CPI inflation has declined slightly less-than-expected to 3.3% with MoM inflation remaining flat.

However, the economy continues to remain strong and there are no clear signs of labour market loosening. Therefore, the Fed chief Jerome Powell has kept rates unchanged and has hinted at only 1 rate cut in 2024 and possibly 4 rate cuts in 2025.

In India May CPI inflation has declined to 4.75% and core inflation has come at only 3.1%. This paves the way for a rate cut by the MPC in October.

The takeaway from the inflation numbers is that the disinflation process is well on track. From the market perspective, this is positive news, particularly for banking stocks.

The benchmark Sensex and Nifty indices are expected to open positive on June 13, following GIFT Nifty trends indicating a gain of 90 points for the broader index.

After a gap up opening, Nifty can find support at 23,300 followed by 23,200 and 23,150. On the higher side, 23,450 can be an immediate resistance, followed by 23,500 and 23,600.

The charts of Bank Nifty indicate that it may get support at 49,800, followed by 49,600 and 49,500. If the index advances further, 50,100 would be the initial key resistance, followed by 50,300 and 50,500.

Today Markets will react to the FOMC meet outcome, US CPI data and Indian macro data as well. The US Federal Reserve held rates steady, indicating only one rate cut this year but a more aggressive rate cut path for next year. Traders holding long positions can hold with a stop loss of 23200 on a closing basis for the targets of 23500-23700 levels.

Indian rupee opened flat at 83.52 per dollar on Thursday versus Wednesday's close of 83.54.