Closing Bell: Nifty above 23,450, Sensex up 182 pts; IT stocks underperform

Indian benchmark indices ended on positive note on June 14 with Nifty hitting fresh record high. The Sensex was up 181.87 points or 0.24 percent at 76,992.77, and the Nifty was up 66.70 points or 0.29 percent at 23,465.60.

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 market maintained a consolidation bias on Friday, closing marginally in the green. After an initial dip, the Nifty quickly rebounded and remained range-bound until the close, eventually settling at 23,465.60, up by 0.29%. Buying interest in the auto, realty, and metal sectors kept traders engaged, while IT lagged. Additionally, the broader market buoyancy contributed to positive market breadth.

Indications suggest further consolidation in the Nifty index. Traders are advised to use any dip around the 23,100-23,300 zone to initiate fresh positional longs. A decisive close above 23,600 could trigger an uptrend towards the 24,000 zone. Meanwhile, a stock-specific trading approach is proving effective, and participants should align their positions accordingly.

Nifty consolidated for the fifth consecutive day and managed to close in the green up ~67 points. On the daily charts we can observe that the Nifty has been consolidating in the broad range of 23200 – 23500. The more it consolidates around this level the more likelihood of a breakout in the coming week. It has already been five days and we believe that a trending move is likely to unfold. The hourly momentum indicator has triggered a positive crossover from the equilibrium line suggesting that the consolidation has matured and can resume next leg of upmove.

Bank Nifty is facing stiff resistance at the 78.6% Fibonacci retracement level (50050) and has been unable to sustain above it. The consolidation is now five trading sessions old and can resume its upmove during the upcoming week. Incase of dips towards 49500 - 49400 should be used as a buying interest for the target of 50500 – 50600.

The positive undertone of the market helped benchmark Nifty scale new highs and inch closer towards the 23500 mark as cautious investors continued with their select buying approach in key frontline stocks. However, midcap & smallcap stocks have been seeing renewed buying interest with large-cap stocks facing higher valuation hurdles. As expectations start building up from the government in the run up to the Budget next month, markets may face bouts of intra-day volatility going ahead.

#1 Market gains for 2nd straight week, Nifty up over 4 percent in 2 weeks
#2 Sensex & Nifty records biggest 2-week gains since December 2023
#3 Sensex & Nifty gain 1 percent each this week, Nifty Bank up 0.3 percent
#4 Midcap Index rises 7 percent in 2 weeks to post biggest 2-wk gains in nearly 3 years
#5 Midcap index gains nearly 4 percent this week

The BankNifty continued its consolidation phase and was unable to surpass the 50000 mark, where the highest open interest is built up on the call side. The index needs to decisively surpass the 50200 mark to confirm an upside breakout towards the 51000 level. The lower-end support is placed at the 49500-49400 zone, and a break below this will open gates for further downside towards 49000.

Indian rupee ended flat at 83.56 per dollar on Friday versus Thursday's close of 83.54.

Indian benchmark indices ended on positive note on June 14 with Nifty hitting fresh record high.

The Sensex was up 181.87 points or 0.24 percent at 76,992.77, and the Nifty was up 66.70 points or 0.29 percent at 23,465.60. About 2177 shares advanced, 1598 shares declined, and 106 shares unchanged.

Biggest gainers on the Nifty were Eicher Motors, M&M, Adani Ports, Shriram Finance and Titan Company, while losers included TCS, Tech Mahindra, HCL Technologies, Wipro and Nestle.

Among sectors, except IT (down 0.7 percent), all other indices ended in the green with auto, telecom, capital goods, healthcare, metal, oil & gas, power, realty up 0.5-1 percent.

BSE Midcap and smallcap gained 1 percent each.

#1 Company continues to outperform in FYTD24, despite weak start to year
#2 Such outperformance can continue for long, with a boost to margins
#3 Essentially, company is sitting on a capacity bank 5-6x of its existing capacity
#4 Key peers will have to add assets at higher capital cost to scale beyond 2x existing capacity

Sensex Today | BSE Metal index up 0.6%; SAIL, Vedanta, Jindal Steel among major gainers

#1 Management re-iterates doubling data revenue to Rs 28,000 crore by FY2027
#2 Management re-iterates reducing net debt/EBITDA to 2x (From 2.2x)
#3 Management re-iterates improving RoCEs to 25 percent+ by FY2026 (from 19 percent in FY2024)
#4 Management re-iterates getting back to 23-25 percent EBITDA margin by FY2027
#5 Management expects the bulk of incremental revenue growth to be driven by digital portfolio
#6 Believe doubling data revenue on existing portfolio would be a tall ask
#7 Build In 20 percent 3-year CAGR in digital portfolio revenue (Vs 34 percent required rate)

Indian Rupee traded on a flat note today. Positive domestic markets and a decline in crude oil prices supported the Rupee. However, strong US Dollar and FII outflows capped sharp gains. India’s WPI inflation rose 2.61% in May vs 1.26% in April and forecast of 2.5%. US Dollar gained on Thursday on hawkish FOMC meeting and commentary by the Fed Chair.

We expect Rupee to trade with a slight negative bias on strong US Dollar and weak global markets. However, a positive tone in the domestic markets and expectations of fresh foreign inflows may support the Rupee at lower levels.

Traders may take cues from India’s trade balance data. Traders may also take cues from Michigan consumer sentiment and inflation expectations data from the US. USDINR spot price is expected to trade in a range of Rs 83.30 to Rs 83.80.

Minda Corporation has entered into and signed a Joint Venture Agreement with HSIN Chong Machinery Works on Friday, June 14, 2024 for manufacturing of Automotive Sunroof Solutions and Closure Technology Products for passenger cars.

#1 Announced acquisition of 100 percent stake in Penna Cement at an EV of Rs 10,400 crore
#2 PCIL’s current cement capacity is 10 mt (majority in South) & clinker 7.3 mt
#3 Another 3 mt clinker & 4 mt cement capacities are under construction
#4 Clinker reserves (based on 2021 data) are at 630 mt
#5 Estimate transaction EV/tonne at approx USD 93, close to greenfield replacement cost
#6 Transaction is positive as it suggests Ambuja is delivering on growth plans

Sensex Today | Nifty Auto index gained 1%; Bharat Forge, Eicher Motors among top gainers

Markets@3 | Nifty hits fresh record high

The Sensex was up 231.78 points or 0.30 percent at 77,042.68, and the Nifty was up 82.70 points or 0.35 percent at 23,481.60. About 2103 shares advanced, 1657 shares declined, and 118 shares unchanged.

Markets@3 | Nifty hits fresh record high

The Sensex was up 231.78 points or 0.30 percent at 77,042.68, and the Nifty was up 82.70 points or 0.35 percent at 23,481.60. About 2103 shares advanced, 1657 shares declined, and 118 shares unchanged.

Sensex Today | Nifty Bank index up 0.3%; PNB, Bank of Baroda among major gainers

#1 Announced acquisition of Penna Cement for Rs 10,400 crore
#2 Penna has operational capacity of 10 mt & 4 mt capacity is under construction
#3 Calculate valuation of deal at USD 103/tonne vs replacement cost at USD 90-110/tonne
#4 Acquisition would take company’s total capacity to 91 mt (target 140 mt by FY28)
#5 Inorganic expansion has lower adverse impact on industry demand-supply balance

Kolte-Patil Developers' group chief executive officer Rahul Talele resigns

Kolte-Patil Developers has informed that Rahul Talele – Group Chief Executive Officer resigned on June 13. The board has appointed Atul Bohra as group chief executive officer.

National Housing Bank plans to raise up to Rs 4,000 crore through bonds on June 18, money market sources said.

The bonds have a base issue size of Rs 2,000 crore and a greenshoe option of Rs 2,000 crore. A greenshoe option gives the underwriter the right to sell investors more bonds than planned if the demand is higher than expected.

NHB's bonds will mature in 3 years, 2 months and 19 days on September 8, 2027.

Bidding for the bonds will take place on June 18, on the electronic bidding platform of National Stock Exchange of India (NSE).

Nomura remains cautious about Axis Bank's medium-term outlook after the resignation of retail lending chief Sumit Bali, following the departure of top executive Ravi Narayan in March. Despite these changes, Nomura maintains a 'buy' rating with a target price of Rs 1,250 per share, projecting a 14% loan CAGR and 15% deposit CAGR for FY24-26.

#1 Exports rose 9.1% y/y

#2 Imports rose 7.7% y/y

#3 Exports were $38.13 bln

#4 Imports were $61.91 bln

#5 Services exports was $30.16 bln

#6 Services imports was $17.28 bln

Markets@2 | Sensex, Nifty trade flat amid volatility

The Sensex was up 83.31 points or 0.11 percent at 76,894.21, and the Nifty was up 34.90 points or 0.15 percent at 23,433.80. About 2233 shares advanced, 1524 shares declined, and 117 shares unchanged.

Havells India is planning to expand its existing manufacturing capacities of air conditioners at Ghiloth and Sricity locations to 15 lakh units per annum at each location, from the existing 9 lakh and 11.2 lakh units, respectively, in order to cater to the increased demand.

The total proposed investment for the above capacity enhancements will be in the range of Rs 50-60 crore. The same will be funded through internal accruals and the expected date of completion is Q4 FY 2025.

A meeting of the rights issue committee of the board is scheduled to be held on Wednesday, June 19, 2024 to finalize the issue price and other related terms of the proposed rights issue, including but not limited to determination of issue size, rights entitlement ratio, record date etc. and other related matters in connection with the rights issue of equity shares.

RITES signed an MOU with Delhi Metro Rail Corporation for collaboration in operations and management projects of metro railway systems. This will include rolling stock, depot management, station management, maintenance of railway infrastructure, and others.

#1 Retail lending business head Sumit Bali resigns
#2 Earlier this year, Ravi Narayanan - head of retail liabilities & branch banking also resigned
#3 Continue to monitor changes in top management
#4 Especially in light of recent churn in the retail banking division
#5 Any impact on Axis’ medium-term growth outlook will also be a key to watch
#6 Build in 14 percent loan CAGR & 15 percent deposit CAGR for bank over FY24-26

Transformers and Rectifiers India has raised Rs 500 crore from institutional investors including Nomura, Goldman Sachs, HSBC and others in a QIP (qualified institutional placement of shares).

Here's the list of institutional investors that have been allotted more than 5 percent of the issue:

> Nomura Funds Ireland India Equity Fund: 11.27 lakh shares; 15 percent of the issue
> Goldman Sachs India Equity Portfolio: 11.27 lakh shares; 15 percent of the issue
> HSBC Midcap Fund: 7.75 lakh shares; 10.3 percent of the issue
> Max Life Insurance - High Growth Fund: 4.21 lakh shares; 5.6 percent of the issue
> Ask Golden Decade Fund: 4.01 lakh shares; 5.33 percent of the issue

The company has executed a mining lease deed with the Government of Odisha. The mines have an annual production capacity of 3.5 million tonnes.

Sensex Today | BSE Power index rises 1%; ABB India, Siemens, CG Power among major gainers

Leading ratings and economic research firm CRISIL is of the view that inflation is expected to average 4.5 per cent for the current financial year.

"Assuming a normal monsoon, we expect food inflation to soften, while non-food inflation could see an uptick but is expected to remain soft on the back of benign commodity prices," CRISIL said.

The rating firm said that consumer price index (CPI) inflation moderated marginally to 4.75 per cent in May from 4.8 per cent in April 2024.

"Non-food categories pulled down the headline inflation, but what is worrying is the relentless inching up of food categories, cereals and pulses", the CRISIL report said. Read More

Stock Market LIVE Updates | Sensex 170 points away from record high

Stock Market LIVE Updates | Nifty 25 points away from record high

Moneycontrol had earlier learnt that Hyundai Motor India is planning to file for an IPO in June. At $2.5-3 billion, Hyundai Motor IPO would rival that of Life Insurance Corporation's public issue in 2022, when it raised about $2.5 billion.

#1 Enters into binding agreement to acquire 100 percent of Penna Cement
#2 PCIL has total grinding capacity of approximately 10 mt, mainly in AP & Telangana
#3 Has another 4 mt under construction, should be completed in 6-12 months
#4 Positive for industry as it reduces risk of excess organic supply in medium-term
#5 Positive for Ambuja given its increased footprint in South
#6 Should support company’s volume growth over medium-term, given high starting utilisation rates

Sensex Today | Nifty Auto outperforms other sectoral indices

Shares of EIH Associated Hotels, the flagship company of The Oberoi Group, gained around 5 percent to hit 52-week high of Rs 892.60 on the National Stock Exchange (NSE) ahead of the company's board meeting on Friday, June 14.

The board will meet to consider and approve the issue of bonus shares to the equity shareholders of the company. Read More

The Ministry of Electronics and Information Technology, Government of India (MeitY) has approved its application under Government of India's Semiconductor Design Linked Incentive (DLI) scheme for the development of a smart energy meter IC for India and Overseas markets.

The company board approved the allotment of 6,62,366 equity shares of the face value of Rs 2 to the employees who have exercised their vested stock options under various MosChip Stock Option Schemes.

Sensex Today | BSE IT index sheds 0.5%; MphasiS, 3i Infotech, Sasken Tech down 2% each

Stanley Lifestyles Ltd has fixed a price band of Rs 351-369 a share for its initial public offering that will open for subscription on June 21.

The anchor bidding will start on June 20 and the issue will close on June 25. Basis of allotment will be on June 26, initiation of refunds will be on June 27 and the stock will be listed on exchanges on June 28.

The IPO consists of a fresh issue of Rs 200 crore and an offer for sale of upto 9.13 million shares. On the upper price band, the total issue size will be at Rs 537 crore. The total mcap of the firm will be at Rs 2000 crore.

Sensex Today | Defence stocks gain; Paras Defence surges 16%

Shares of Prestige Estates Projects surged over 6 percent to an all-time high of Rs 1,997 per share on June 14 after global brokerage firm CLSA reiterated its 'buy' rating and raised the target price to Rs 2,320, suggesting a potential upside of over 16 percent from current levels. Read More

Sesnex Today | Cement Stocks rally; Jaiprakash Associates, Sagar Cement among major gainers

#1 Announced acquisition of south-based Penna Cement at EV of Rs 10,400 crore
#2 Acquisition implies attractive EV/tonne of USD 80-90/tonne including expanded capacity
#3 Acquisition moves it to top 3 players in South
#4 Acquisition reinforces company’s strong positioning as growing Pan-India leader
#5 Increasing market share of major players may squeeze smaller inefficient players further
#6 Might see more M&A in the sector

#1 Policy continuity looks to be in place
#2 Lower number of NDA seats spooked everyone in the market
#3 Velocity of doing business in India is faster and easier
#4 Don’t think monetary tightening is happening anywhere in the world
#5 Currency is expected to appreciate
#6 Indian currency has continued to remain strong
#7 Expect our currency to be substantially stronger over the next decade
#8 India will create a bubble, investors are anticipating the same
#9 Will not be surprised if India gets inflow of $60-70 bn
#10 Believe private sector will participate by raising $5-10 bn
#11 Smallcaps & midcaps have experienced a bubble
#12 Continue to remain bullish on Indian economy
#13 PSUs continue to lead the rally

Sternal Buildcon, a wholly owned subsidiary of ‘SGIL’ (Signatureglobal (India) had executed a sale deed dated 13-Jun-2024 to purchase the land admeasuring approximately 3.80625 acres situated at Sector 37D, on Dwarka Expressway, Village Harsaru Gurugram.

The said land has an overall potential developable area of approximately 6 lacs square feet.

Transformers and Rectifiers India has raised Rs 500 crore in a QIP (qualified institutional placement of shares) round, it said late evening on 13 June.

The company has issued 75.18 lakh equity shares to (QIBs) qualified institutional bidders at Rs 665 per share, aggregating to Rs 500 crore.

The issue of shares is at a discount of Rs 34.95 per share to the floor price of Rs 699.95, it said in an exchange filing.

Sensex Today | Bajaj Housing Finance files DRHP with SEBI for IPO: ET

Markets@12 | Sensex up 100 pts, Nifty at 23,450

The Sensex was up 111.68 points or 0.15 percent at 76,922.58, and the Nifty was up 47.40 points or 0.20 percent at 23,446.30. About 2321 shares advanced, 1414 shares declined, and 126 shares unchanged.

#1 Target raises to Rs 473 from Rs 270
#2 Investec increases target multiple to 6.2x vs 3.5x
#3 EBITDA estimate increased by 8 percent for FY25 & 7 percent for FY26
#4 EBITDA estimate raised on higher probability of demerger, current LME pricing & strong cash flow profile
#5 Management targets EBITDA at USD 6.5-7 billion for FY26 and USD 10 billion in the medium term
#6 EBITDA target is steep & overlooks external risks
#7 Aggressive growth capex, unrelated capital allocation key risks

The nomination and remuneration committee of FSN E-Commerce Ventures on June 14, 2024 has allotted 4,73,138 equity shares of face value Re 1 each towards the exercise of vested employee stock options under employee stock option scheme of the company.

S&P Global Ratings today placed its ratings on six Tata group entities on CreditWatch with positive implications. These companies are Tata Steel., Tata Motors, Jaguar Land Rover Automotive PLC (JLR), Tata Power Co., TML Holdings Pte., and ABJA Investment Co. Pte.

#1 Jefferies adds GMR Airports to India long-only portfolio with 4 percent weightage
#2 GMR Airports to be added by reducing ICICI Bank, HDFC Bank investments by 1 percent each and Axis Bank by 2 percent
#3 In the Asia ex-Japan long-only portfolio, GMR Airports will replace HDFC Bank

Sensex Today | BSE Capital Goods index rises 1%; SKF India, Timken, ABB India up 4-8%

Markets@11 | Sensex, Nifty trade marginally higher

The Sensex was up 88.21 points or 0.11 percent at 76,899.11, and the Nifty was up 40.80 points or 0.17 percent at 23,439.70.

Except IT, all other sectoral indices were trading in the green.

BSE Midcap and Smallcap indices up nearly 1 percent each.

The company has allotted 1,33,180 equity shares of face value of Rs 5 each vide a resolution dated June 13, 2024 and approved on June 14, 2024, pursuant to the exercise of Restricted Stock Units by eligible employees with 4,723 equity shares under the 2015 Incentive Compensation Plan and 1,28,457 equity shares under the Infosys Expanded Stock Ownership Program 2019.

Consequently, on June 14, 2024, the issued and subscribed share capital of the company stands increased to Rs 20,76,01,42,375 divided into 4,15,20,28,475 equity shares of face value Rs 5 each.

The board has given its in‐principle approval to proceed to raise funds through QIP mode up to an amount not exceeding Rs 1,000 crore in one or more tranches.

Sensex Today | Nifty Midcap and Smallcap outperform

Zee Media will be setting up a wholly-owned subsidiary to bring forth ancient knowledge of Indian scriptures that intersect with modern science, the company said in a statement on June 14.

The board has approved the new entity which will focus on content around spirituality, mindfulness and wellbeing through launch of digital and other media properties in the infotainment space. Shares of Zee Media edged higher in early trade after the announcement. Read More

#1 Social self-exchange is relatively new and evolving
#2 NSE SSE now has 65 NPO's registered and 8 NPO's listed
#3 These listed NPO's have successfully mobilized over Rs 11 crore in funds
#4 The next NPO listing could be actually much larger than the funds raised till now
#5 The impact of these funds is seen in wealth creation, job creation and overall economic growth with inclusion
#6 SSE framework addresses the challenges faced by NPO's
#7 Offering structured mechanisms for fundraising through innovative instruments like zero coupon, zero principal, bonds
#8 SEBI made significant changes to make the platform more conducive for social enterprises, including reducing the minimum issue size to rupees 50 lakhs and the minimum application size to Rs 10,000
#9 Seeing the progress, NSE SSE launched eIPO, a smart mechanism for assessing last month

The company announced a collaboration with Hewlett Packard Enterprise to launch a GenAI solution at the Wipro Cloud Studio’s Kodathi office to serve customers globally. This will enhance operational efficiency and customer experience.

Lemon Tree Hotels announces the opening of Keys Lite by Lemon Tree Hotels, Urban Square, Udaipur-Rajasthan on June 13, 2024.

This is the ninth property of the group in the picturesque state of Rajasthan.

The property is being operated under the franchise division of Lemon Tree Hotels.

Sensex Today | Nifty Smallcap index hits fresh high

Sensex Today | Nifty Midcap Index crosses 55,000 mark for the first time

Sensex Today | Nifty IT index sheds 0.7%; Mphasis, Tech Mahindra, Coforge among major losers

Markets@10 | Sensex, Nifty trade marginally higher

The Sensex was up 35.03 points or 0.05 percent at 76,845.93, and the Nifty was up 20.30 points or 0.09 percent at 23,419.20. About 2323 shares advanced, 1299 shares declined, and 173 shares unchanged.