Sensex, Nifty end flat; Adani Ent, Cipla shine; RIL, TCS drag

Indian shares were little moved on Monday as the market awaited fresh triggers, while Shree Cement plunged after a report said an income tax probe found tax evasion of 230 billion rupees ($2.81 billion).

The blue-chip Nifty index closed 25 pts up, just below 18,700, at 18,691, while the S&P BSE Sensex shed 10 pts to close at 62,970. Thirteen of the 15 Nifty broad-based sectoral indices ended in the green.

Cipla, Adani Enterprises, Hero MotoCorp, Maruti Suzuki, and M&M were among the biggest gainers in today's session in Nifty 50 index. NTPC, Reliance, and TCS shed and were the biggest laggards.

Among sectors, Auto and Pharma jumped more than a per cent each with FMCG, Consumer Durable and Metal also ending in the green with reasonable gains. PSU Bank and Energy were the only indices to end in the red with minor losses.

Domestic equities appeared to brush off worries of political instability in Russia and a subsequent rise in oil prices after a short-lived mutiny by Russian mercenaries against Moscow.

Japan's Nikkei share average fell for a third straight session after spending the day flip-flopping between small gains and losses. The Nikkei closed 0.25% lower. The benchmark index had fallen about 2.4% in the prior two sessions, following its multi-month surge to a 33-year high last week. The broader Topix lost 0.2%.

China and Hong Kong stocks closed down for a fourth straight session on Monday, as tourism data during last week's three-day Dragon Boat Festival pointed to weak economic recovery.

China's blue-chip CSI300 Index and the Shanghai Composite Index ended 1.4% and 1.5% lower, respectively. Hong Kong benchmark Hang Seng Index fell 0.5% and the Hang Seng China Enterprises Index dropped 0.4%.

European shares edged lower on Monday, as a sharp decline in financial stocks more than offset gains in the energy sector on concerns about political instability in top oil producer Russia.

UK's FTSE 100 was subdued at the open on Monday as losses in financial stocks partially offset strong performances in energy stocks that tracked oil prices higher following a political instability over the weekend in major crude producer Russia.

The Securities Appellate Tribunal (SAT) has postponed the hearing on the plea filed by Essel Group chairman Subhash Chandra and ZEE managing director and CEO Punit Goenka. This decision comes after the SAT previously denied granting any interim relief to Subhash Chandra and Punit Goenka, who were barred by the markets regulator from holding positions as directors or key managerial personnel in any listed company. The allegations against them include the alleged siphoning off of funds from the media firm.

During the hearing, the counsel representing Zee Entertainment Enterprises argued that the market regulator, Securities and Exchange Board of India (SEBI), lacked evidence beyond bank statements to support the accusations of fund round-tripping. The counsel further contended that SEBI cannot issue an ex-parte order. (Read More)

The Indian handicraft industry, heavily dependent on exports, will likely see exports decline 6-8% in sales this fiscal year, as demand from key markets in the United States and the European Union (EU) continues to slow down, Crisil Ratings said in a report on Monday.

The report said that the industry, which saw a 20% fall in exports in FY22, is likely to face headwinds due to a slowdown in discretionary spending in these major global markets. This downturn is expected to result in a decrease in sales, bringing the estimated value down to $3.3 billion for this fiscal year. (Read More)

Rain Industries, a petrochemicals maker, experienced strong buying activity on Monday following a credit rating upgrade and positive outlook assigned by India Rating on the company's term loan. The stock witnessed a gain of nearly 4% throughout the day. As a result of the outlook upgrade, Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher, included Rain Industries in her medium-term tech pick and recommended buying and accumulating the stock.

As of the time of writing, Rain Industries was trading at ₹169 apiece on the BSE, representing an increase of almost 3.5%. The stock was close to its intraday high of ₹169.85 apiece. (Read More)

PB Fintech, the parent company of Policybazaar, experienced a surge in its share price, rising over 8% to reach a new 52-week high of ₹705.50 apiece on the BSE. This increase was driven by positive comments made by the company's management during its analyst meeting.

The management emphasized the company's operational efficiencies, growth potential in its target markets, and its ability to gain market share, all of which are expected to contribute to improved operational performance in the coming years.

Kotak Institutional Equities, in its assessment of PB Fintech, praised the company's insure-tech capabilities showcased during the virtual analyst meeting. They have an 'Add' rating on the stock, with a target price of ₹725 per share. (Read More)

Marico Ltd, a packaged consumer goods company, has integrated its Saffola Store with the Open Network for Digital Commerce (ONDC). This collaboration aims to provide new growth opportunities, foster collaboration, and enhance digital experiences for customers. The Saffola Store serves as Marico's direct-to-consumer platform for its popular edible oil and packaged food brand, Saffola.

The ONDC network, initiated by the Indian government, is a digital commerce network designed to empower both businesses and consumers. The objective of this initiative is to create an inclusive ecosystem that significantly boosts e-commerce penetration in India and enables the inclusion of sellers of all types and sizes on a population-scale level.

Adani Power Limited has announced the successful commencement of commercial operations at its power plant situated in Godda District, Jharkhand. The company confirmed this information in a filing with the stock exchange. As a result of this news, Adani Power Limited's stock was trading at ₹249.40 apiece on the BSE, reflecting a 2.89% increase at 1:48 pm.

"Unit 2 of 800 MW capacity of the 2x800 MW Ultra-supercritical power project of Adani Power (Jharkhand) Limited (“APJL", a wholly owned subsidiary of Adani Power Limited), situated in Godda District in Jharkhand, has achieved commercial operations at 24:00 hrs Bangladesh Standard Time on 25th June, 2023 (23:30 hrs India Standard Time on 25th June, 2023) following successful completion of Reliability Run Tests, as per contract," said company in its stock filing on Monday. (Read More)

Byju's, the edtech unicorn, has reportedly not deposited the provident fund (PF) money for a significant number of its employees during the fiscal year 2023-24. According to a report in The Hindu BusinessLine, former employees have shared evidence such as screenshots of their EPF account passbook and salary slips, indicating that Byju's has not made PF payments.

The report further stated that data from the Employees' Provident Fund Organisation (EPFO) indicated that Think and Learn Pvt Ltd, the parent company of Byju's, has not fulfilled its PF obligations.

Mint has not independently verified this development. (Read More)

Tejas Anil Shigrekar, senior technical analyst (commodities and currencies) at Angel One: The weekend session may contribute to the commodity market's profit booking

Beginning of May month showed downward pressure for all commodities, which was extended in June month when gold on MCX suffered a significant sell-off, closing at ₹58196 per ten grammes, a drop of more than 10%, or ₹6250.

Silver fell 13.88 percent ( ₹10,950) and concluded at ₹67,950 per kg. In the international spot market, gold closed at $1925 per ounce, down 8%, while silver fell 16% to $22.30 per ounce. The last week of April saw the gathering of economic data, which influenced the Dollar Index starting on May 1st. Other headwinds erupted on June 14 after the US Federal Reserve paused interest rates after ten consecutive increases. A hawkish outlook by major central banks acts as a headwind for the commodity.

NHPC, India's leading hydropower development company, has entered into a Memorandum of Understanding (MoU) with Grid Corporation of Odisha (GRIDCO) to collaborate on the development of pumped storage projects and renewable energy initiatives.

According to an official release by the Ministry of Power, the MoU outlines the establishment of storage projects with a minimum capacity of 2,000 megawatts, as well as the development of on-ground and floating solar projects with a combined capacity of at least 1,000 megawatts in the state of Odisha. This partnership signifies NHPC and GRIDCO's commitment to advancing sustainable and renewable energy solutions in the region.

India's oilseed exports are expected to grow by 10-15 per cent during this fiscal as traders are getting good orders from regions like Southeast Asia, Latin America and Africa, according to exporters.

In 2022-23, the oilseed exports rose by over 20 per cent to USD 1.33 billion (around ₹10,900 crore). The main oilseeds exported by the country are groundnut, sesame, soyabean, castor, niger, and sunflower.

Former Chairman Indian Oilseeds and Produce Export Promotion Council (IOPEPC) Khushwant Jain said the order books are good and "we expect healthy growth this year also".

Soyabean and groundnut occupy 61 per cent and 23 per cent, respectively of the total kharif oilseeds area, he said adding the planting of sunflower stands at 19.7 per cent and sesame at 12.4 per cent. (PTI)

The IPO of Essen Speciality Films, a manufacturer and exporter of plastic products, has garnered an impressive response from investors. As of June 26, the second day of the subscription period, the IPO has been subscribed 6.82 times.

The public issue, valued at ₹66 crore, has received bids for 2.81 crore shares, surpassing the 61.99 lakh shares available for subscription as of 12:30 pm on June 26. The strong subscription indicates a high level of investor interest in Essen Speciality Films' IPO. (Read More)

The IPO of IdeaForge Technology Ltd, which began accepting subscriptions on June 26, witnessed a subscription rate of 1.01 times on the first day. The subscription period will close on June 29.

The IPO garnered significant interest from retail investors and employees, with their respective portions being fully subscribed within just thirty minutes of the launch. The retail investors' portion was subscribed 4.04 times, while the employee portion received a subscription of 3.09 times.

On the other hand, the subscription from Non-Institutional Investors (NIIs) reached 97%, while the Qualified Institutional Buyers (QIBs) portion did not receive substantial subscription. (Read More)

Shree Cement shares experienced a significant decline of over 10% on Monday following reports of alleged tax evasion amounting to ₹23,000 crore. The stock price plummeted as much as 10.11% to ₹22,601.30 per share during early trading on the BSE.

According to an NDTV report, a tax evasion of ₹23,000 crore was purportedly discovered during searches conducted at Shree Cement's offices located in Beawar, Jaipur, Chittorgarh, and Ajmer in the state of Rajasthan.

The news report, citing sources, described this as one of the largest instances of tax evasion to date. It stated that the company allegedly engaged in tax evasion by diverting ₹1,200-1,400 crore annually through fake agreements, resulting in substantial revenue loss for both the central and state governments. (Read More)

Saish Sandeep Sawant Dessai, Research Associate, Base Metals, Angel One Ltd

Base Metals Report

After closing on a higher note for the previous three weeks, the base metals pack ended on a lower note, with copper snapping a four-week winning streak.

To boost the country's sluggish economic recovery, Chinese officials implemented their first lending rate cuts in ten months. However, the cuts were not as extensive as expected.

The pressure on the metal prices came on the back of a disappointment over the size of interest rate cuts in China, which is a major consumer of these metals.

Shanghai copper prices, on the other hand, reached an eight-month high, boosted by a weaker yuan and an increase in the copper premium in the Chinese spot market.

Copper inventories at monitored Chinese warehouses declined 1.1% this week, but sentiment remained pessimistic due to the lack of any economic stimulus to promote metal demand growth.

OUTLOOK: We expect copper to trade lower towards 713 levels, a break of which could prompt the price to move lower to 708 levels.

Infosys has recently revealed a long-term collaboration with Danske Bank, aiming to accelerate the bank's digital transformation objectives at a rapid pace. The agreement, valued at $454 million, spans a period of five years with the option to extend for an additional year up to three times.

The exchange filing by Infosys states that this collaboration will support Danske Bank in achieving its strategic goals, which include delivering improved client experiences, operational excellence, and establishing a modernized technological ecosystem powered by advanced technologies of the future. (Read More)

LKP Securities says BUY For SONA BLW Precision Forgings: Current Market Price ( ₹) 507, 12 M Price Target ( ₹) 624, Potential upside (%) 23:

We believe that the rapidly growing penetration of EVs and Sona being well entrenched into it, is riding the EV wave seen globally. The company is performing well in its traditional business of Differentials and is also gaining traction in other products like EDL and ADAS (through recent Novelic acquisition). Though the starter motors business is waning due to ICE dependence, EV business is more than offsetting this fall. Sona is set to benefit from the electrification of light vehicles aided by its presence in both driveline and motors.

Mehul Desai on JM Financial Institutional Securities recommendations on Sapphire IN: BUY - INR 1,570

The India QSR opportunity remains extremely attractive & offers faster growth in the consumption space. The key factor is the execution on critical aspects – portfolio, price-value equation, omni-channel presence and unit economics. In this report, we highlight Sapphire’s improved performance on key metrics over larger time frame (FY19-23), rather than looking at quarterly picture. In KFC, despite presence in low non-veg consumption states, store count CAGR has been healthy and SSSG/ADS CAGR over FY19-23 is higher compared to Devyani, which provides assurance on opportunity in its territory. In PH, while it doesn’t have rights for delivery stores, the CAGR for store count and SSSG/ADS CAGR is not materially different vs Devyani. Another key highlight is the delivery on profitability which has been much better, visible from substantial reduction in gap in restaurant operating margins (ROM) vs Devyani over last 5 years for both the formats. Infact in FY23, despite inflation, Sapphire has seen expansion in adj ROM for both KFC/PH vs compression in Devyani. While demand challenges & high base effect will impact the near term performance but from long term perspective we like Sapphire’s strategy to capitalize on large QSR opportunity by leveraging unique strengths of PH/KFC, investing towards increasing brand relevance along with calibrated store expansion to ensure sustainable profitability. With execution remaining strong, we believe there is headroom for discount to Devyani (c.35%) to narrow over time. Reiterate BUY

Epsilon Advanced Materials (EAM), a battery material company, has announced its intention to invest $650 million in establishing a synthetic graphite anode manufacturing facility in the United States.

The planned facility aims to have an annual capacity of 50,000 tonnes and will employ advanced green technologies to produce high-capacity anode materials. This production capacity is expected to meet the power requirements of more than 1 million electric vehicles (EVs). (Read More)

Cyient DLM Limited's initial public offering (IPO) is scheduled to enter the primary market on June 27, 2023, which is tomorrow. The IPO, valued at ₹592 crore, will be open for bidding until June 30, 2023. The management of the company has set the price band for the Cyient DLM IPO at ₹250 to ₹265 per equity share, and the book build issue is intended for listing on both the NSE and BSE.

Market observers have noted that Cyient DLM shares have already made their debut in the grey market, where they are being traded at a premium of ₹110. (Read More)

On Monday, the share price of ICICI Securities witnessed a significant rise of 15% and reached a new 52-week high. This surge was driven by announcements that the brokerage company would hold a board meeting on June 29 to discuss a proposal for the delisting of its equity shares. The ICICI Securities share price opened at an intraday high of ₹650 per share on the BSE. However, it later dipped to an intraday low of ₹607 per share.

Additionally, ICICI Bank, the promoter of ICICI Securities, will also hold a board meeting on June 29 to discuss the delisting proposal concerning its brokerage business.

Based on the shareholding pattern of March 2023, ICICI Bank currently owns 74.85% of ICICI Securities. (Read More)

During the opening trade on Monday, the shares of SBI Cards & Payment Services experienced a decline of over 3% following a downgrade and target price reduction by global brokerage firm Nomura. The stock opened at ₹830.10 per share on the BSE, reflecting a decrease of 3.16%.

Nomura downgraded SBI Cards & Payment Services to a rating of 'Reduce' and revised the target price from ₹1,030 to ₹700 per share. This new target price is more than 15% lower than the lowest price observed on Monday.

The brokerage expressed expectations that SBI Card's profitability would continue to face challenges, which likely influenced their downgrade and target price adjustment. (Read More)

Yes Bank shares have been experiencing an upward trend since the early morning trading session. The share price of Yes Bank opened with an upward gap and quickly surged to an intraday high of ₹16.35 on the NSE, registering a roughly 2% increase within a few minutes of the stock market's opening today. Stock market experts attribute the rise in Yes Bank shares to the announcement of a fund raising program by the private lender through the issuance of debt securities. They also suggest that the stock has a strong support level at ₹13 per share and anticipate that in the near term, the Yes Bank share price may reach levels around ₹18 per share. (Read More)

On Monday, the share price of HDFC Life Insurance witnessed a decline of over 1% following the company's announcement of receiving a demand notice amounting to more than ₹942 crore for non-payment of Goods and Services Tax (GST). As a result, the stock price dropped by up to 1.62% to ₹626.95 per share on the BSE.

According to HDFC Life Insurance, the issue revolves around the claiming of input tax credit for the supply of services, which the Directorate of Goods and Services Tax (GST) Intelligence (DGGI) deems ineligible for such claims. (Read More)

The Hinduja Group is in talks to invest ₹10,000 crore to hike its stake in IndusInd Bank, according to media report. Hinduja Group is likely to increase its stake from 17 per cent to 26 per cent, reported Economic Times. The deal is likely to be completed by the second half of FY24. Earlier this year, RBI gave in-principle and conditional approval to IndusInd International Holdings, a Hinduja Group entity, to raise its stake in IndusInd Bank to 26 per cent. IndusInd International Holdings has 12.58 per cent and IndusInd Ltd had 3.92 per cent as of the March quarter in IndusInd Bank.

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: The global stock market rally appears to be losing steam. Last week S&P 500 lost its 5-week winning streak and in India last week the Mid and Small- cap indices lost their 12-week winning streak. Next two days will decide whether this trend will sustain or not.

A pillar of support for the market is the FII buying. It is important to understand that FII buying is focussed on domestic cyclicals rather than export segments. FIIs have been buyers in financials, automobiles and capital goods and sellers in external themes like IT and metals which explains the strength of the former and weakness of the latter. Investors may wait and watch for new directions in the market.

On Monday, the Indian rupee displayed a slight increase against the US dollar, aligning with the mixed performance of Asian currencies. Despite the turmoil in Russia over the weekend, which had minimal impact on investors' risk appetite, the dollar index remained stable at 102.70 against a basket of currencies. The Indian rupee opened 3 paise higher at 82.00 against the US dollar, in comparison to the previous close of 82.03.

The grey market premium (GMP) for HMA Agro Industries IPO, according to market observers, is currently ₹15, showing a decrease of ₹10 from its GMP of ₹25 over the weekend. The observers believe that this decline in grey market sentiment could be attributed to the recent weakness observed on Dalal Street during the last two trading sessions. They also noted that global market sentiments have been weak in recent sessions, which might have contributed to the decrease in HMA Agro Industries IPO GMP. However, the observers mentioned that the grey market sentiment could improve today due to the upcoming launch of several IPOs on both the main board and the SME segment of the primary market this week. (Read More)

Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher has recommended three intraday stocks for today

1] BSE: Buy at ₹608, target ₹655, stop loss ₹598;

2] Railtel Corporation: Buy at ₹127, target ₹135, stop loss ₹124; and

3] Shanti Gears: Buy at ₹462, target ₹492, stop loss ₹463. (Read More)

In a regulatory filing to the stock exchanges on June 25, RattanIndia Power Limited, a leading thermal power company, announced that it has secured a loan of ₹1,114 crore. The transaction was spearheaded by Kotak Mahindra Bank. The company highlighted that it had reached a resolution in December 2019 with its previous lenders pertaining to the 1,350 MW Amravati Thermal Power Plant.

The loans that were previously held by Indian banks and financial institutions have now been taken over by international financial institutions, including Goldman Sachs and Varde Partners, through Aditya Birla ARC. As part of the resolution, both the outgoing and incoming lenders obtained a 15% equity stake each in the company. (Read More)

Reliance Industries tests financing program for consumer durables under Jio brand; Hinduja Group in talks to hike stake in IndusInd Bank; Asian Paints acquires additional stake in White Teak; Infosys cooperates with Australian investigation into 'tainted contracts'; Yes Bank to raise $305m through debt securities; HDFC Life receives notice for GST dues; Zydus Lifesciences to acquire 6.5% stake in Mylab; NTPC approves issuance of bonds up to $1.6bn; RVNL selected as lowest bidder for $53m project; RattanIndia Power raises $148m loan led by Kotak Mahindra Bank. (Read More)

Yes Bank, an Indian private lender, announced on 23 June that it plans to raise ₹25 billion (approximately $305 million) through debt securities, as stated in a regulatory filing. The bank further mentioned that the funds may be raised in Indian or foreign currency and the instruments utilized could include non-convertible debentures, bonds, and medium-term notes. The proposal is set to be voted upon by shareholders during the bank's annual general meeting on 18 August. Additionally, as of 31 March, Yes Bank's total capital adequacy ratio stood at 17.9%, reflecting a 50 basis points (bps) increase compared to 31 March 2022. (Read More)

Reliance Industries Ltd (RIL) is testing a consumer durables financing programme under the Jio brand at select Reliance Digital outlets before a full-fledged launch of Jio Financial Services later this year, people aware of the development said.

Mint visited two stores in Mumbai and adjoining Thane and spoke to executives at four other stores about the availability of financing under what they called Jio Finance. According to the executives, customers would be offered the option of Jio Finance alongside schemes from other banks and non-bank lenders. (Read More)

Asian Paints Ltd revealed its acquisition of an additional 11% stake in White Teak, a home decor company, for a sum of ₹54 crore on Friday. Additionally, as part of the agreement, Asian Paints paid White Teak ₹59.5 crore as an earn-out, contingent on the fulfillment of specified financial milestones.

Following this transaction, Asian Paints now holds a total stake of 60% in White Teak. The remaining 40% equity share capital will be obtained during the financial year 2025-2026, subject to the achievement of defined financial milestones. The maximum consideration for this acquisition is ₹360 crores. (Read More)

According to a media report, the Hinduja Group is engaged in discussions to invest ₹10,000 crore in order to raise its stake in IndusInd Bank. As per the report in the Economic Times, the Hinduja Group intends to increase its current stake of 17 per cent to 26 per cent. The completion of this deal is anticipated to take place in the second half of the fiscal year 2023-24. Earlier this year, the Reserve Bank of India (RBI) granted in-principle and conditional approval to IndusInd International Holdings, an entity of the Hinduja Group, to enhance its stake in IndusInd Bank to 26 per cent. (Read More)

ICICI Securities' board of directors on June 29 will consider a proposal for the delisting of its equity shares from the exchanges.

In a regulatory filing, ICICI Securities, said “…the Board of Directors of the Company is scheduled to be held on Thursday, June 29, 2023 to consider a proposal for delisting of Equity Shares of the Company pursuant to a Scheme of Arrangement with ICICI Bank Limited, listed Holding Company, under Chapter VI Part C, Regulation 37 of SEBI (Delisting of Equity Shares) Regulations, 2021."

ICICI Bank will also hold a similar board meeting on June 29 to consider the delisting proposal of its broking subsidiary ICICI Securities. (Read More)

On the back of India's robust economic recovery and optimistic growth prospects, foreign portfolio investors (FPIs) have continued to show interest in Indian equities, marking the fourth consecutive month of net buying. In June, FPIs have injected more than ₹30,600 crore into the Indian market. This follows their investment of over ₹43,000 crore in May, which was the highest inflow from FPIs in nine months.

FPIs have demonstrated buying activity in various sectors such as financials, autos, and capital goods stocks. However, they have been sellers of IT, metals, power, and textiles stocks.

According to data from NSDL (National Securities Depository Limited), FPIs have made a net investment of ₹30,664 crore in Indian equities in June. In May, FPIs invested ₹43,838 crore, which not only represents the highest monthly inflow in 2023 but also the highest since November of the previous year. (Full Story)

U.S. stocks closed lower on Friday, capping a week dominated by Federal Reserve Chairman Jerome Powell's testimony in which he signaled more interest rate hikes ahead but vowed the central bank would proceed with caution.

All three major U.S. stock indexes lost ground in a broad sell-off. Interest-sensitive megacap stocks weighed heaviest on the tech-laden Nasdaq composite index, led by Microsoft Corp, Tesla Inc and Nvidia Corp .

With few market-moving catalysts this week aside from Powell's congressional testimony, all three indexes notched weekly losses, ending a weeks-long rally.

The Nasdaq snapped its eight-week winning streak, its longest since March 2019, while the S&P 500 broke its five-week rally, its longest since November 2021.

The S&P 500 and the Nasdaq logged their biggest Friday-to-Friday percentage drops since early March, when the regional banking liquidity crisis hit.

The Dow Jones Industrial Average fell 219.28 points, or 0.65%, to 33,727.43, the S&P 500 lost 33.56 points, or 0.77%, at 4,348.33 and the Nasdaq Composite dropped 138.09 points, or 1.01%, to 13,492.52. (Reuters)