Market Closing
Benchmark indices closed lower for second consecutive day amid liquidity crisis and weak global cues.
The Sensex fell 71.53 points to 39,122.96and the Nifty declined 24.40 points to 11,699.70. The Nifty Midcap and Smallcap indices dropped 0.4 percent each.
UPL,Yes Bank,M&M,Indiabulls Housing andTCS were top gainers among Nifty50 stocks, rising 1-5 percent whereasJSW Steel,ONGC,Eicher Motors,Tata Steel andVedanta fell 2-3 percent.
Reliance Power, PC Jeweller, IFCI, Glenmark Pharma, Mahanagar Gas, IGL, Gujarat Gas, Motherson Sumi, Cadila Healthcare, Edelweiss FInancialandDish TV were down 3-12 percent.
Jain Irrigation, HDIL, DHFL, Zee Media, BHEL and NBCC rallied 3-14 percent.
Broader market indices at this hour
NTPC
has signed a Joint Venture Agreement with Power Grid Corporation of India to incorporate a Joint Venture Company (JVC) with equity participation of 50:50, respectively with an objective to undertake the business for distribution of electricity in distribution circles in various States and Union Territories of India and other related activities.
Ramco Systems
in an exchangefilingsaid European multimodal logistic player Forwardis hassignedLogistics Digital Transformation program with
the company. It willimplement Ramco Logistics Suite across all entities of the Group.
KPR Agrochem
Andhra Pradesh based agri-input company KPR Agrochem is set to launch its initial public offering for subscription on June 28. Its price band is fixed at Rs 59-61 per share.
The IPO will consist of a fresh issue aggregating upto Rs 210 crore and an offer for sale of 1.2 crore equity shares.
SBI Life Insurance Company shares rallied nearly 2 percent to hit a fresh 52-week high of Rs 713.80 as global brokerage Morgan Stanley expects strong growth across cycles.
While having an overweight call on the stock with a target price at Rs 850 (implying 21 percent potential upside from current levels), the research firm said company's improving operating metrics will maintain current valuations and value of new business (VNB) compounding will drive strong stock returns.
According to Morgan Stanley, company can deliver strong growth across cycles and premiums are expected to rise at 17 percent CAGR over FY19-21.
Lemon Tree Hotels shares rallied 5 percent intraday after global brokerage CLSA sees 40 percent upside from current levels, citing potential in Mumbai property.
While maintaining buy call and target price at Rs91, the research house said its upcoming Mumbai property is significant as Mumbai is a lucrative hotel market with occupancy level of over 75 percent.
Future Enterprises To Issue NCDs
Company in its BSE filing said it approved enabling resolution giving authority to issue of Secured Redeemable Non-Convertible Debentures (NCDs) on private placement basis, for a value upto around Rs 900 crore, in one or more tranches.
It will replace few of its high cost current or near term maturity debts as well as to meet further funds requirements.
Steel Ministry made a pitch to finance ministry ahead of the budget and sought peak rate of import duty to be increased to 25 percent from 15 percent, reports CNBC-TV18 quoting unnamed sources.
DHFL In Focus
To work out a rescue package for Dewan Housing Finance Corporation (DHFL), its lenders will meet in the first week of July,reportsBusiness Standard. The key talking points of the meeting will include restructuring of loans to ensure repayment, fresh working capital support, inducting a new financial investor and a new management team to be put in place.
European stocks were mixed as investors continue to monitor geopolitical tensions between the USand Iran stoking fears of a military confrontation in the Middle East.
Market Outlook
"We do not expect any relief from volatility front in the coming week too, thanks to scheduled derivatives expiry. Meanwhile, participants will be eyeing G20 summit on June 28-29, hoping some resolution on prevailing trade war. On data front, they will also keep a tab on Core sector data, which will be unveiled on June 28,"JayantManglik, President,ReligareBroking told Moneycontrol.
Besides, progress of monsoon and crude oil movement will remain on traders’ radar, he said.
Nifty has next crucial support at 11,600 and its breakdown could lead to further decline ahead. In case of rebound, 11,800-11,900 zone would act as hurdle, he added.
Just In
State-owned RITES said company recommended the issuance of fully paid up bonus shares in the ratio of one fully paid up equity share for every fourfully paid up equity shares held, subject to the shareholders' approval in the ensuing Annual General Meeting.
Max India jumps 6 percent intraday after Radiant Life Care completedacquisition of stake in Max Healthcare.
Just In
Intellect bags order from Bank of Mongolia, the Central Bank of Mongolia.
"In partnership with IT Zone LLC of Mongolia, Intellect will implement its award-winning Quantum Central Banking Solution. The solution is well poised to accelerate the Bank of Mongolia's digital transformation initiatives under the Payment System Modernization project funded by Asian Development Bank (ADB)," company said.
HOV Services said board of directors approved the appointment of Harjit Singh Anand as director on board of HOVS LLC, the subsidiary of the company.
Met Department said monsoon covered half of the country and conditions are favourable for advancement of rains inCentral andWest India this week.
Bandhan Bank shares gained 3 percent intraday after company received approval from National Company Law Tribunal for merger of Gruh Finance.
Viral Acharya Resigns
RBI confirmed that afew weeks ago, Dr ViralAcharya submitted a letter to the central bank informing that due to unavoidable personal circumstances, he is unable to continue his term as a Deputy Governor of the RBI beyond July 23, 2019.
Consequential action arising from his letter is under consideration of the Competent Authority, the central bank said.
Metals Under Pressure
Omkar Speciality Forays Into CRAMS Business
OmkarSpecialityChemicalssaid in order to move up the value chain in the growing pharma industry with the help of its strong operational efficiencies backed by robust R&D focused initiatives and multiproduct delivery capabilities, company has decided to foray into Contract Research and Manufacturing Services (CRAMS) business.
Market Outlook
AshishNanda EVP & Business Head - PCG, Commodities and Currency Business, Kotak Securities said in the previous week, the market took a proper test of every trader and showed them, where they stand. "The market tested the traders in terms of patience, confidence, courage and execution."
He is not expecting Nifty to close below 11600, rather he expects strong bounce back if Nifty falls in the region of 11,680/11,650 levels in next one to two days.
Option data is turning neutral to positive for long traders, who should be ready to capitalise if Nifty forms reversal formation, Nanda said.
Management Interview
L&T Power management told CNBC-TV18 that the segment received an EPC order in thermal power space after 3 years. "Buxar plant has to be completed over 48 months. All approvals are already in place and we will mobilise resources over next one month."
The company expects rapid industrialisation over next 5 years and will have to add 37 GW capacity by 2023. It expects 6-7 GW capacity to be added annually over next 2-3 years.
Jet Airways in Action
After the appointment of Interim Resolution Professional, the power of board members at Jet Airways suspended, reports CNBC-TV18.
Resolution professional Ashish Chhawchharia invited claims from creditors by July 4.
RBI deputy governor Viral Acharyatold CNBC-TV18 that he has decided to leave six months early due to unavoidable personal reasons.
Goldman Sachs on L&T
While maintaining buy call on L&T being on conviction list with a target price at Rs 1,700, Goldman Sachs said company continued to show strength in core business and vigour in non-core business. "In bull-case scenario, we 26 percent upside from current levels.
Minister of State for Finance Shri Anurag Singh Thakur said GST Council will consider tweaking tax rate for electric vehicles going ahead and the matter is pending with GST Council as of now, reports CNBC-TV18.
Just In
Alembic Pharmaceuticals has received US Food & Drug Administration (USFDA) approval for Bromfenac Ophthalmic solution 0.09%.
Eicher Motors said its senior officials will be meeting Nordea Asset Management,Regal Funds Management andArtisan Partners today.
Inox Wind shares gained 2 percent on commissioning of common power evacuation systems with ISTS network at Dayapar, Gujarat.
Auto Stocks Under Pressure
Lupin in Focus
Japanese brokerage Nomura also maintained its buy call on Lupin with a price target at Rs 1,017 as it expects trend of consolidation in pharma to continue.
Domestic market growth remained challenging and there’s limited scope for new product introductions, it said, adding it sees strategic rationale in acquiring JB Chemicals.
Last week, a media report had indicated that Lupin and Piramal Enterprises are in race for buying stake in JB Chemicals but company denied.
Disclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
IndiaMart Raises Money Via Anchor Book
A day before the issue opened,IndiaMartalready raised more than Rs 213 crore from 15 anchor investors includingICICIMutual Fund,HDFCMutual Fund,SBIMutual Fund,BirlaMutual Fund, Hornbill Capital Advisers LLP, etc.
IndiaMart InterMesh
IndiaMart InterMesh, the first mainboard IPO in last two months, opened for subscription with a price band of Rs 970-973 per share.
The company, which is the largest online B2B marketplace for business products and services, aims to raise Rs 475 crore through the public issue that will close on June 26.
It is an offer for sale of 48,87,862 shares by its promoters and investors, so company will not get any proceeds from public issue.
Sectoral trend is mixed with Bank, FMCG, IT and Metals indices trading higher while Auto and Pharma lost ground.
Ideas for Profit: Should you subscribe to the IndiaMART InterMESH IPO?
... Read More
Block Deal
Emami shares fell 6 percent after CNBC-TV18 report suggested that about 8.3 percent equity exchanged hands in early trade.
JMC Projects shares gained 3 percent on bagging orders worth Rs 514 crore.
Market Opening
Benchmark indices opened flat with Sensex falling 6.65 points to 39,187.84and the Nifty rising11.10 points to 11,735.20.
Yes Bank, IndusInd Bank, L&T, UPL, Bharti Airtel and Zee Entertainment are early gainers while Dr Reddy's Labs, Tech Mahindra, Bhart Infratel, Reliance Industries, Hero Motocorp, Axis Bank, and Indiabulls Housing Finance were losers.
Nifty Bank gained 0.3 percent.
Nifty Midcap index was up 20 points. CG Power, Bandhan Bank, Balrampur Chini, Dhampur Sugar andJMC Projects gained 1-8 percent.
Reliance Capital, Sobha, Motherson Sumi and Glenmark Pharma were under pressure.
Glenmark Pharmapartnered with Novartis to distribute and promote three respiratory products in Brazil.
Inox Wind has commissioned common power evacuation systems with ISTS network at Dayapar, Gujarat.
L&T's power business won order of over Rs 7,000 crore in Bihar.
