Sensex, Nifty end at new closing highs; Powergrid, HDFC twins shine

India's benchmark Sensex and Nifty closed at a record high on Wednesday with Sensex registering an all-time high mark intraday. The Nifty 50 also inched towards its all-time high but remained 12 points shy. The rally was supported by persistent foreign inflows into Indian equities backed by the country's strong macro-economic print.

The S&P BSE Sensex hit its all-time high at 63,588.31, before giving up some gains to end at 63,523, a jump of 195 points. The blue-chip Nifty index rose 40 points to close at 18,856.

Ten of the 15 major sectoral indexes advanced, with high-weightage financials supporting the rally. Media index was the other major gainer with Bank indices registering a marginal gain. Metal and FMCG came under pressure and ended in the red.

Powergrid, HDFC Twins, and HDFC Life topped the stock charts, while JSW Steel, Hindalco and M&M shed the most and featured at the bottom of the Nifty 50 stock index.

Global stocks remained mixed on Wednesday on negative news including a lack of new stimulus from Beijing, bearish British inflation data and a further slump in European real estate, as markets await direction from Federal Reserve Chair Jerome Powell.

Japan's Nikkei share average reversed course to close higher as investors scooped up cheap heavyweights, with SoftBank Group and chip-related shares leading the gains. The Nikkei index climbed 0.56% to end higher after falling as much as 0.7% earlier in the session. The broader Topix also recouped lost ground to end 0.5% higher

China stocks plunged the most in two months on Wednesday as stimulus disappointed investors, sparking more policy easing arguments from analysts, while Sino-U.S. tensions returned to the fore after President Joe Biden called Chinese President Xi Jinping a "dictator".

China's blue-chip CSI300 Index closed down 1.5%, and the Shanghai Composite Index slumped 1.3%. Both indexes logged the biggest daily fall since April 21. Hong Kong benchmark Hang Seng Index plunged 2% and the Hang Seng China Enterprises Index dropped 2.2%.

European shares opened lower on Wednesday after the real estate sector led declines against rising euro zone bond yields, while data affirming stubborn inflation in Britain weighed down London stocks.

UK's benchmark FTSE 100 fell to a three-week low as inflation data deepened worries that the BoE may need to tighten monetary policy even more, while Federal Reserve Chair Jerome Powell's testimony was also on tap.

According to a statement from the Ministry of Consumer Affairs, Food & Public Distribution, the government has successfully procured a remarkable 55.8 million tonnes of rice during the ongoing 2022-23 marketing season. This procurement has greatly benefited an astonishing 1.22 crore farmers across the country. The government allocated a staggering ₹1.7 trillion for the purpose of purchasing rice from farmers at the minimum support price (MSP).

In addition, the procurement of wheat has reached an impressive 26.2 million tonnes, surpassing the total purchases of 18.8 million tonnes made during the previous year. (Read More)

CNBC-TV18 reported on Wednesday that a survey operation by the income tax department of India was underway at five different sites owned by Shree Cement Ltd in the state of Rajasthan. 

In response to this news, Shree Cement's shares experienced a decline of up to 2.7%, marking its largest intraday percentage drop since May 24.

On Wednesday, Mahindra Logistics experienced significant buying activity as investors anticipated the dividend payout scheduled for next month. Additionally, Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher, has expressed optimism regarding the stock's RSI (Relative Strength Index) indicator, indicating a potential strong move and upside ahead. As a result, the analyst has recommended buying the stock.

At the time of writing, Mahindra Logistics' share price was trading at ₹382.50 per share, reflecting a rise of ₹14.70 or 4%. The stock reached an intraday high of ₹387 per share earlier in the day. Notably, the second half of the current trading session witnessed a surge in buying activity for the stock. (Read More)

 According to data from the National Securities Depository Ltd (NSDL), foreign portfolio investors (FPIs) continued their buying spree of Indian equities in the new financial year. In the first half of June, FPIs purchased shares worth 131.24 billion rupees ($16 billion) on a net basis.

Over the past four months, FPIs have added stocks worth 765.28 billion rupees ($93.31 billion). This sustained buying activity has contributed to an 8% increase in the Nifty 50 index between March 1 and June 15. Notably, the benchmark index has recorded gains in each of the last four months, driven by the FPI buying trend. (Reuters)

hina stocks plunged the most in two months on Wednesday as stimulus disappointed investors, sparking more policy easing arguments from analysts, while Sino-U.S. tensions returned to the fore after President Joe Biden called Chinese President Xi Jinping a "dictator".

** China's blue-chip CSI300 Index closed down 1.5%, and the Shanghai Composite Index slumped 1.3%. Both indexes logged the biggest daily fall since April 21.

** Hong Kong benchmark Hang Seng Index plunged 2% and the Hang Seng China Enterprises Index dropped 2.2%. (Reuters)

The India Meteorological Department (IMD) has announced that the southwest monsoon is likely to progress into certain areas of Odisha and eastern Uttar Pradesh while extending its coverage to additional regions of West Bengal, Jharkhand, Bihar, and the southern peninsula within the next 48 hours. This news brings a sense of relief to farmers who depend on these rainfall patterns for irrigation purposes. The month of June plays a significant role, accounting for approximately 16-17% of the total monsoon rainfall and being crucial for the sowing of kharif crops. (Read More)

During intraday trade, the share price of Blue Dart Express witnessed an increase of nearly seven per cent. This rise was prompted by Motilal Oswal Financial Services, a domestic brokerage firm, upgrading the Blue Dart Express stock from 'neutral' to 'buy'. The firm has set a target price of ₹8,040, indicating a potential upside of 20 per cent.

At the opening of the trading session, the stock was valued at ₹6,905.05, surpassing the previous closing price of ₹6,743.30. It further climbed by 6.8 percent to reach an intraday high of ₹7,200. Simultaneously, the equity benchmark Sensex also achieved a new all-time high of 63,588.31 during the trading session. (Read More)

On Wednesday, the share price of Reliance Industries experienced a gain following a Buy rating maintained by Jefferies, a global brokerage house. Jefferies expressed optimism about faster revenue growth in the retail segment and increased traction in Jio's broadband services.

According to Jefferies, in its base case scenario, it has set a target price of ₹3,125 per share, indicating a potential upside of 22%. The brokerage house believes that the risk-reward ratio is favorable, considering the forward Ebitda multiples at the 5-year average for estimated 16% Ebitda growth in FY24. (Read More)

Religare Broking recommendations for Exide Industries: BUY: CMP (Rs) 190, Target Price (Rs) 229, Potential Upside 20.8%

Auto Industry is expected to be on the growth path in FY24 which will aid in volumes and revenue growth for the company as its major revenue is generated from the sale of automotive batteries and services. Besides, the Auto industry is gradually moving towards the electrification of vehicles for which the company is under the process of setting up a new lithium Ion battery manufacturing plant to place itself as one of the leading suppliers to EV OEMs. Hence, our outlook on the company is positive and we expect its Revenue/EBIDTA/PAT to grow at a CAGR of 9.2%/16.2%/18% over FY23-25E. We maintain Buy on the stock with a target price of Rs. 229 valuing the company at 13x FY25E EPS and its HDFC Life stake at ₹37/share.

Amar Ambani, Head of Institutional Equities, YES Securities Ltd

“After almost an 8-month consolidation, the Sensex has hit an all-time high. World inflation has fallen fast and importantly, key inputs like Oil, natural gas, lumber, palm oil, steel, coal have come off significantly. The interesting part is that these price drops look sustainable, because they seem to have come on the back of reinstatement of disrupted supply, rather than demand destruction. The supply chain index that we track is back to pre-pandemic level. Global Central bankers are close to the peak of their rate hike cycle. In fact 20 out of 23 countries tracked on Bloomberg may begin to see rate cuts in 2024.

India stands out in a slowing world and a weakened China. The government’s thrust of infrastructure, including digital public infra, and pick up in private consumption through rise in credit offtake, will help the India story chug along.

Sensex earnings kicker will come from expansion in margins, as companies keep some part of the gain from falling input costs, and strong results from Banks and NBFCs. Valuations aren’t demanding at 15.5x FY25 EPS, so if monsoons don’t play spoiler, 2023 will be a strong year for Indian equities. Lot of money is on the sidelines and the carry trade is playing out from Japan. FPI money should keep flowing into India, with expected stable yields and healthy INR outlook.”

High inflation hit disposable income of nearly 40% urban Indians over the last 12 months, but the decline in the country was among the lowest when compared with other international markets, as per a survey by YouGov.

Globally, 50% of consumers polled in 18 markets said high inflation caused a net decrease in their disposable incomes. About 25% of the over 1,000 respondents in urban India saw a net increase in their disposable incomes, while globally only 14% reported the same. Disposable income is the money left with a household after taxes and expenses related to housing and fuel. (Read More)

According to a Reuters report, Sony Pictures Entertainment has acknowledged the seriousness of the India markets regulator's order, which prohibits the founder and CEO of Zee Entertainment from holding board positions. Sony has stated that it will continue to closely observe any developments that could impact its deal with Zee.

On Tuesday, Ravi Ahuja, the Chairman of Global Television Studios and Corporate Development at Sony Pictures Entertainment, reportedly conducted a comprehensive two-hour presentation to the board of its parent company, Sony Corp., in Tokyo. The presentation aimed to assess the ongoing developments and the potential outcomes of India's largest media and entertainment deal. (Read More)

According to a report from Tech Crunch, Olx Group, the online marketplace and classifieds business arm of Prosus, has recently made an announcement about cutting around 800 jobs globally. In addition, the company has initiated the process of closing down its automotive unit, Olx Autos, in certain markets. This decision comes after exploring potential buyers and investors. Sources close to the situation have revealed that the layoffs are not limited to a particular market or division, and affected employees are being notified about the decision. (Read More)

The ₹740 crore initial public offering (IPO) of Cyient DLM Limited which is a subsidiary of the IT firm Cyient will open for subscription on June 27 and close on June 30.

In a BSE filing on June 20, Cyient said that the Draft Red Herring Prospectus (DRHP) was approved by the Registrar of Companies in Telangana on June 20.

"The issue shall open for subscription to the public on Tuesday, June 27, 2023, and shall close on Friday, June 30, 2023. Further, we wish to inform you that the price band for the Issue, which will be decided by Cyient DLM in consultation with the book-running lead managers, will be advertised at least two working days prior to the issue opening date," Cyient said. (Read More)

Reliance Group, led by Anil Ambani, has recently appointed Parul Sharma as the group president, with her new role taking effect from June 20. Sharma brings extensive experience as a communications strategist to her new position.

Previously, Sharma held a leadership role in communications strategy at Star India, which is owned by Rupert Murdoch. She worked with Star India for 15 years, overseeing various aspects such as corporate image, publicity, and relationships. Before her tenure at Star India, Sharma was associated with the German broadcaster 'Deutsche Welle' based in Cologne. (Read More)