Closing Bell: Sensex, Nifty end at a new high; FMCG, banks shine

Indian benchmark indices ended at record closing high on June 26 with Nifty above 23,850. At close, the Sensex was up 620.73 points or 0.80 percent at 78,674.25, and the Nifty was up 147.50 points or 0.62 percent at 23,868.80.

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 edged higher as expected, gaining over half a percent. After a flat start, the Nifty gradually climbed throughout the session and closed near the day's high at 23,868.80 level. Sectoral trends were mixed, with energy, FMCG, and banking contributing to gains, while metal, auto, and realty sectors faced pressure. The broader indices remained range-bound and closed nearly unchanged.

Selective heavyweights have been driving the index gains, with Reliance making a significant impact today. We anticipate some volatility on Thursday due to the scheduled monthly expiry of June derivatives contracts. Despite this, we reiterate our recommendation to continue with a “buy on dips” strategy, focusing on specific sectors and themes for stock selection.

Nifty opened on a flat note and as the day progressed it gained momentum and closed with gains of ~147 points. On the daily charts we can observe that the Nifty has witnessed follow-through buying interest after breaking out of the consolidation range on the upside. We believe that the Nifty is likely to target levels of 24150 from short term perspective. Any dips towards support zone 23700 – 23680 should be used as a buying opportunity. Daily and hourly momentum indicators are in sync so momentum is likely to continue.

Bank Nifty also witnessed buying interest and continued with its upmove. The sharp run up is likely to continue until it shows exhaustion on the price front. On the upside 53660 is the immediate hurdle while 52300 – 51900 is the crucial support from short term perspective.

The BankNifty index continued its strong momentum, just shy of the 53,000 mark where fresh call writing is visible. The undertone remains bullish, and a buy-on-dip approach is advisable with immediate strong support at the 52,500-52,400 level. The index has witnessed aggressive put writing at lower levels, indicating strong support.

Heavyweight Reliance and the banking counters-led rally helped the Index to extend its journey towards the north to end the session at a record level of 23,868.80 with gains of 147.50 points. On a sectoral front, Media was the top performer followed by Energy while Metal and Realty persisted with their underperformance. Mid and Smallcaps underperformed as the buying interest remained towards Index stocks only.

As indicated yesterday, the Index is performing as per our expectations but we believe that a profit-booking correction can be seen because the ongoing rally is on a weak foot and is mainly driven by select heavyweights.

Indian rupee ended 14 paise lower at 83.57 per dollar on Wednesday versus Tuesday's close of 83.43.

Indian benchmark indices ended at record closing high on June 26 with Nifty above 23,850.

At close, the Sensex was up 620.73 points or 0.80 percent at 78,674.25, and the Nifty was up 147.50 points or 0.62 percent at 23,868.80. About 1634 shares advanced, 1763 shares declined, and 85 shares unchanged.

Biggest gainers on the Nifty included Reliance Industries, UltraTech Cement, Bharti Airtel, ICICI Bank and Grasim Industries, while losers were Apollo Hospitals, Bajaj Auto, M&M, Tata Steel and Hindalco Industries.

Among sectors, bank, oil & gas, telecom, media and FMCG up 0.3-2 percent, while auto, metal and realty down 0.7-1.5 percent.

The BSE midcap index was down 0.30 percent while the smallcap index ended on a flat note.

The board of directors of Orbit Exports approved to enter into an agreement with K&H Constructions, for the development of 2MW Solar Captive Generating Plant as Special Purpose Vehicle in south Gujrat region by having equity of 26% in SPV.

#1 CFO Vivek Karve, has tendered resignation in order to pursue personal interests
#2 Vivek Karve will be with company till Oct 31, 2024 i.e. until declaration of Q2FY25 results
#3 Management in the process of identifying a suitable candidate for succession
#4 Vivek Karve joined company as CFO in Sept 2020 prior to that, he was group CFO for Marico

#1 Prefer Godrej Properties & Prestige Estate based on their FY24/25 pre-sales growth momentum and on cheaper valuations
#2 Lack of launches will mean muted Q1FY25 for industry
#3 On a relative basis, expect DLF, Oberoi and Godrej to see stronger Q1 sales

JK Cement Works, Prayagraj, A Unit of JK Cement has successfully commenced cement grinding capacity of 2MnTPA on 25 June, 2024 at its newly set up cement manufacturing facilities situated at Prayagraj, Uttar Pradesh. With this the company’s total grey cement installed capacity has increased to 24.34 MnTPA.

#1 Company’s May spending market share rose 27 bps MoM, to 16.0 percent
#2 YoY growth at 11 percent was higher sequentially (+1 percent YoY in April)
#3 YoY growth remains below 17 percent for the industry
#4 YoY growth vs industry reflects impact of RBI's recent notification on corp card spending

Markets@3 | Sensex, Nifty at day's high

The Sensex was up 610.31 points or 0.78 percent at 78,663.83, and the Nifty was up 141.90 points or 0.60 percent at 23,863.20. About 1664 shares advanced, 1724 shares declined, and 83 shares unchanged.

Indian Rupee depreciated by 0.18% on Dollar demand amid expiry of the futures contract and a strong Dollar. However, domestic markets touched fresh record highs, preventing a sharp fall in the Rupee. US Dollar gained on Tuesday on hawkish Fedspeak, signalling delay in rate cut by the US Federal Reserve.

We expect Rupee to trade with a slight negative bias on Dollar demand ahead from oil importers as we are heading towards the end of the month. A strong Dollar and elevated crude oil prices may also put downside pressure on the Rupee. However, positive domestic markets and FII and foreign inflows may support the Rupee. Investors may remain cautious ahead of core PCE data from the US this week. USDINR spot price is expected to trade in a range of Rs 83.30 to Rs 84.

Markets@2 | Sensex, Nifty extend gains

The Sensex was up 542.80 points or 0.70 percent at 78,596.32, and the Nifty was up 130.50 points or 0.55 percent at 23,851.80. About 1710 shares advanced, 1646 shares declined, and 94 shares unchanged.

The board of directors of the company, at its meeting held today i.e. June 26, 2024, has granted its approval for exploring available options for raising of funds through all permitted instruments, including but not limited to, by way of issuance of equity shares and/or preference shares and/or any other eligible securities, including by way private placement or qualified institutions placement or preferential issue, or any other permissible modes, for an amount not exceeding Rs 200 crores, in one or more tranches, and subject to such approvals as may be required including that of shareholders / regulatory and statutory approvals.

#1 Sustainability on track but growth uncertain
#2 FY24 was largely mixed, with 12 percent volume growth only a 2 percent rise in EBITDA/t at Rs 916
#3 Organic expansion remains on track
#4 With NCLT admitting JPA insolvency, company’s medium-term capacity target tough to achieve

Sensex Today | BSE Telecom index rises 1%; GTL Infra, Vodafone Idea, Bharti Airtel up 2-5%

Sensex Tdoay | Metal underperforms

#1 Channel checks indicate strong momentum supported by takeover of customers from competitor
#2 No change in interest rate schemes, changes in employee rotation plans
#3 Gold LTVs lowest in four years, even a modest increase can grow its book by 10 percent
#4 Raise gold loan growth estimates but cautious of MFI

The Board of Directors of Vijaya Diagnostic Centre and Medinova Diagnostic Services at their respective board meetings held today, approved the scheme of amalgamation for the merger of MDSL with and into VDCL.

MDSL is a subsidiary of VDCL which holds 62.14% equity stake in MDSL.

Brokerage Call | Hospital price caps less likely in healthcare services: BofA Securities

#1 Feedback from investor meet in Asia shows preference for healthcare services over pharma
#2 In healthcare services, hospital price caps less likely
#3 Margin risk from bed addition sometime away in healthcare services
#4 In healthcare services, diagnostics' worst likely behind
#5 For pharma, stable US unbranded generics pricing environment in near-term
#6 Dr Reddy's Laboratories/Cipla/Divis discussed stocks

Sensex Today | Cement Stocks Rally

Sensex Tdoay | BSE Oil & Gas index up 0.5%; Reliance, BPCL, Adani Total Gas, among major gainers

Bajaj Do Brasil Comercio De Motocicletas Ltda, the wholly owned subsidiary of Bajaj Auto has set up and commenced the commercial production at its new manufacturing plant at Av. do Turismo, Bairro Tarumã, Manaus, Brazil on 26 June 2024.

The plant is equipped with engine and vehicle assembly as well as testing facilities and has a production capacity of 20,000 units per year in a single shift.

#1 Buy call on NMDC & Indian Pellet Makers
#2 Indian domestic steel spreads are falling again & Q1 PAT will be worse YoY
#3 As of now steel spreads are falling as Chinese steel production keep rising
#4 Exports from China is depressing the global prices
#5 In past quarters have seen USD 25/tonne QoQ fall in China steel exports prices
#6 European hot rolled coil (HRC) has fallen USD 75/tonne QoQ
#7 Pellet premiums to remain high in long run
#8 Like iron ore miners & pellet makers, NMDC remains top pick

Sensex Tdoay | BSE Smallcap index gains 0.5%; India Cements, Black Box, CESC top gainers

Shareholders have approved the re-appointment of Subhash Chand Aggarwal as the Chairman and Managing Director of the company for another term of 5 consecutive years, effective January 29, 2025.

Sensex Today | Telecom spectrum auction concludes with bids over Rs 11,000 crore

#1 5G spectrum auction concludes after 6 rounds of bidding

#2 Spectrum auction records bids of over Rs 11,000 crore

#3 Demand concentrated on 900, 1,800 MHz spectrum bands

Sensex Today | Nifty, Bank Nifty outperform

Sushant Kumar Mishra has ceased to be CEO-Logistics due to internal restructuring, effective June 25. Divij Taneja is appointed as CEO-Logistics from the same date.

Stock Market LIVE Updates | Sensex hits fresh record high of 78556.33

IREDA, HUDCO shares jump about 2 percent each on Moneycontrol report that the Budget is likely to facilitate cheaper funds

Sensex Today | Nifty Realty index sheds 0.6%; Sunteck Realty, Brigade Ent, Phoenix Mills top losers

Petroleum and Natural Gas Regulatory Board (PNGRB) has accorded its approval, for transfer of authorisation for establishing and operating City Gas Distribution Network in Jalandhar GA, in favor of Adani Total Gas.

With Jalandhar GA, the company now has 34 gas and enables the company to have its footprint in the state of Punjab, in the gas distribution business to serve the consumers.

The National Company Law Tribunal (NCLT) has allowed the withdrawal of the implementation application for the composite scheme of arrangement with Sony.

Sensex Today | BSE Bankex at fresh record high

The company has received an order from Maharashtra GST authorities, raising a GST demand worth Rs 71.65 crore for FY20, on premium charges paid to Thane Municipal Corporation in relation to land sale. The company says the order has no impact on GSK.

Stock Market LIVE Updates | Bank Nifty at record high 

Assets under management for the mutual fund industry have averaged a compounded annual growth rate of 24.5 percent over the last five years, while the top five cities still account for 52 percent share of the total AUM, a Moneycontrol analysis shows that growth is being led by Tier-2 towns.

In fact, data from the Association of Mutual Funds in India, shows that 18 percent of the assets of the mutual fund industry came from beyond the top 30 cities in May 2024, compared with 16 percent in March 2020. (Read more)

Stock Market LIVE Updates | Nifty Bank hits record high, crosses earlier level of 52,746.5

BSE Midcap and Smallcap indices continue to surge despite concerns related to valuations. In June, the BSE Midcap index fell in just four sessions: June 4, June 19, June 21, and June 25. Similarly, the BSE SmallCap index experienced declines on only three days: June 4, June 19, and June 25. On all other days, both indices traded higher.

In the current month till date, BSE MidCap has gained 7.4 percent, its biggest jump since November 2023. BSE Smallcap has gained 10.2 percent, its highest monthly gain since February 2021. Meanwhile, the Sensex and Nifty are up around 5.3 percent each in June till date. (Read more)

The meeting of Board of Directors of the company will be held on Monday, July 8, 2024 to consider and fix the date, time and venue of 29th Annual general meeting and approve the Director’s report along with annexures.

To consider and approve Book closure for the purpose of the 29 th Annual general meeting and to increase Authorised share capital of the Company.

Board also consider the proposal of issuance of fully paid bonus equity shares to the Equity shareholders of the company and to consider the split of face value of the Equity shares of the company.

Markets@11 | Sensex, Nifty at record high

The Sensex was up 190.62 points or 0.24 percent at 78,244.14, and the Nifty was up 45.00 points or 0.19 percent at 23,766.30. About 1833 shares advanced, 1385 shares declined, and 98 shares unchanged.

DEE Development Engineers, a leader in the specialized process piping solutions industry, witnessed a remarkable stock market debut, exceeding pre-listing expectations. The company is listed at Rs. 339 per share, a staggering 67% premium over its issue price of Rs. 203. This impressive performance surpasses the anticipated strong listing, fueled by the overwhelming investor response during the IPO.

DEE's strong competitive edge, established clientele, diverse product portfolio, robust order book, and consistent financial performance likely fueled investor enthusiasm.

DEE's exceptional listing performance signifies strong investor confidence in the company's future prospects. However, it's crucial to maintain a balanced perspective now. Though we have a long-term view for this company, a stop-loss level of 300 could be maintained.

The meeting of the Board of Directors of the company will be held on June 29 to consider the issue of non-convertible debentures (NCDs) up to Rs 12,000 crore, subject to approval of shareholders in the ensuing Annual General Meeting.

Akme Fintrade (India) made a muted debut on June 26 after listing at Rs 127, a premium of nearly 6 percent over the issue price of Rs 120 on NSE.

The Akme Finrade IPO is a book-built issue totaling Rs 132 crores, consisting entirely of a fresh issue of 1.1 crore shares.

The IPO bidding took place from June 19 to June 21, with allotment finalised on June 24. The shares were listed on the BSE and NSE.

The IPO of the non-banking finance company received 53.97 times subscription on the closing day of bidding on June 21.

Shares of Falcon Technoprojects India debuted at a 8.7 percent discount on the NSE Emerge, listing at Rs 84 compared to the issue price of Rs 92.

The Falcon Technoprojects IPO is a fixed price issue totaling Rs 13.69 crores, consisting entirely of a fresh issue of 14.88 lakh shares.

The IPO bidding period was from June 19 to June 21, 2024, with allotment finalised on June 24.

The Falcon Technoprojects IPO was subscribed 65.32 times overall, with the non-institutional investors (NII) category subscribed 45.02 times and the retail category subscribed 82.72 times.

Sensex Today | BSE Auto index down 0.5%; TVS Motor, M&M, Bajaj Auto among major losers 

#1 Sustainability on track but growth uncertain
#2 FY24 was largely mixed, with 12 percent volume growth only a 2 percent rise in EBITDA/t at Rs 916
#3 Organic expansion remains on track
#4 With NCLT admitting JPA insolvency, company’s medium-term capacity target tough to achieve

#1 Channel checks indicate strong momentum supported by takeover of customers from competitor
#2 No change in interest rate schemes, changes in employee rotation plans
#3 Gold LTVs lowest in four years, even a modest increase can grow its book by 10 percent
#4 Raise gold loan growth estimates but cautious of MFI

DEE Development Engineers debut at Rs 335.8 per share against IPO issue proce of Rs 203 per share

Markets@10 | Sensex, Nifty trade flat

The Sensex was down 22.89 points or 0.03 percent at 78,030.63, and the Nifty was down 23.5 points or 0.10 percent at 23,697.80.

A block deal involving 23.70 lakh shares of Sharda Motors took place on the exchanges on June 26. The block deal was executed at a an average price of Rs 1,996 per share, which took the total transaction value to Rs 474 crore.

Moneycontrol could not immediately ascertain the buyers and sellers involved in the transaction.

Shares of DEE Development Engineers, a piping solutions provider, is likely to make its stock market debut at over 40 percent premium on June 26, experts said.

The robust response to the IPO by investors through subscription numbers, strong order book, healthy financial performance, and long-standing customer relationships, along with positive market conditions are some of the key reasons for the expected stellar debut.

Sensex Today | BSE Metal index down 1%; Vedanta, NMDC, Hindalco down 2-3%

The lender said shareholders will consider raising funds via the issue of debt securities on August 23.

UltraTech Cement Middle East Investments Limited, the company's wholly-owned subsidiary in the UAE, has revised its offer to buy 1,25,039,250 shares of Ras Al Khaimah Co. for White Cement and Construction Materials PSC (RAKWCT), representing 25% of the share capital of RAKWCT, against the offer made for 1,58,049,610 shares (31.6% stake) earlier.

Sensex Today | Nifty Media index up 0.5%; DB Corp, Zee Entertainment, Sun TV among major gainers

Meghna Infracon Infrastructure launched residential project named “RIVAAN” located at Goregaon (west), Mumbai.

Promoter Ambuja Cements and Ravi Sanghi will sell up to a 3.52% stake in Sanghi via offer for sale on June 26-27. The floor price for the OFS has been fixed at Rs 90 per share.

Vivek Karve has resigned as Chief Financial Officer of M&M Financial Services and Financial Services Sector, as he decided to pursue personal, social, and professional interests beyond full-time employment.

On the back of mixed global cues, the Indian indices opened flat on June 26.

In yesterday's trade, Nifty surged to a new all-time high at 23,754.15, boosted by improved risk-on sentiments, while Bank Nifty also performed impressively. RBI Governor Shaktikanta Das is confident of India's growth reaching 7.2% this fiscal year. Nifty's key support is at 23,591, with resistance at the 24,000 mark.

The 5G spectrum auction saw bids worth RS 11,000 crore on the first day. Upcoming US catalysts include the May PCE Price Index and March quarter GDP figures.

Recommended trades include buying Nifty and Bank Nifty at current levels with specified targets and stop losses. HDFC AMC is a top stock pick, with a buy recommendation at CMP and targets of 4,203/4,351, citing momentum play.

A sharp upsurge in the Banking counters helped the Index to end the session at a record level. With a strong bullish candle, Nifty50 has breached its well-maintained range of 23,400-23,660 which suggests an extension of the current upmove, and as per the pattern, the approximate target comes to 23,920 while on the lower side, the immediate support is placed at 23,660.

BankNifty surpassed its previous high by forming a strong green candle and opening the gate to rally to 53,400 while 52,000 will be considered strong support.

From the Auto segment, Ancillary counters regained momentum especially the Tyre segment (Apollo Tyre- Pennant and Pole Breakout). Selective buying was seen in the IT sector, and one should keep an eye on it. Despite the rangebound trade in the Mid and Smallcap segments, some stocks have experienced a strong breakout: Banco Products (Range Breakout) and Gabriel (Rounding Bottom Breakout).

Benchmark indices are trading flat in the pre-opening session.