PremiumIndian indices on Friday wiped out all the gains in late trade amid volatility as both the Sensex and Nifty closed marginally lower. Global shares rose on Friday amid mixed signs for investors such as rising energy prices and Covid-19 restrictions easing in China. Shares rose in Japan, Australia, and South Korea, while markets were closed in Hong Kong and Shanghai for public holidays.
Indian indices on Friday ended marginally lower as stocks in auto, banks, metal, power, and realty sectors came under heavy pressure.
The Sensex declined 48.88 points, or 0.09%, to close at 55,769.23, while Nifty50 fell 43.70 points to end at 16,584.30. Sectorally, only IT and energy stocks managed to stay in the green.
On the 30-stock index, the most gains were made by RIL, Infosys, and L&T, among others, while UltraTech Cement, NTPC, and Maruti were among the biggest losers.
On Nifty50, RIL, Infosys, and L&T made the most gains, while Grasim, UltraTech, and Shree Cement were among the biggest laggards.
Multibagger stock: Deepak Nitrite share price rally took a pause today after rising for five successive previous sessions. One of the biggest multibagger stocks in chemical space today opened with downside gap and went on to hit intraday low of ₹1931.30 per share levels, losing over 5 per cent from its Thursday close of ₹2045.80 apiece on NSE.
Shares of Life Insurance Corporation of India (LIC) declined in Friday's trading session to its lowest level since listing of ₹801 apiece on the BSE. LIC shares, that made stock market debut on May 17, 2022, are down more than 15% from its IPO issue price.
Shares of Mishtaan Foods surged to hit the upper circuit level of 5% on the BSE in Friday's deals on the day of the record date of its bonus shares issue announced in the ratio of 1:1. The multibagger stock started trading ex-bonus on Thursday, June 2, 2022.
The tariff hike is driving strong revenue and Ebitda growth in the telecom sector. Analysts at Jefferies believe that Bharti Airtel is the best way to play rising mobile tariffs in India and remains the brokerage's top stock pick in the sector.
Indian cybersecurity rules due to come into force later this month will create an "environment of fear rather than trust", a body representing top tech companies has warned the government, calling for a one-year delay before the rules take effect.
The Internet and Mobile Association of India (IAMAI), which represents firms including Facebook, Google and Reliance, wrote this week to India's IT ministry criticising a directive on cybersecurity set out in April.
Among other changes the directive from the Indian Computer Emergency Response Team (CERT) requires tech companies to report data breaches within six hours of noticing such incidents and to maintain IT and communications logs for six months.
Nasdaq futures fell after Reuters reported that Tesla Inc. Chief Executive Officer Elon Musk said the electric carmaker needs to cut jobs. S&P 500 contracts also slipped before a key US payrolls report that investors will study for clues on the pace of central bank policy tightening.
Tesla shares declined 2.5% at 4:01 a.m. in New York premarket trading. Nasdaq contracts were 0.6% lower, while those those on the S&P 500 dropped 0.3%. Europe’s Stoxx 600 index was up 0.2%, with chemicals companies and utilities leading the limited advance. UK markets remain closed for holidays marking the Queen’s Jubilee, reducing trading volumes.
The National Company Law Appellate Tribunal has directed the new board of the debt-ridden IL&FS Group to distribute ₹16,361 crore of cash and InvIT units available across the Group to its creditors on pro-rata basis.
European shares opened higher on Friday, with investors awaiting U.S. non-farm payrolls data to make bets about central bank tightening, while also bracing for any change in stance from the European Central Bank at its meeting next week.
Broad-based gains saw the pan-European STOXX 600 index rise 0.4% by 0707 GMT, placing it on course to erase almost all its weekly losses.
Investors are hoping that any signs of a slowdown in the U.S. employment market could sway the Federal Reserve towards a less aggressive policy path.
Aether Industries shares today made a positive debut on the BSE at ₹706.15 levels and continued to surge up to intraday high of ₹776.75 apiece levels, around 20 per cent higher from its upper price band of ₹642 per equity share, hitting the upper circuit level on its first day. The specialty chemical stock listed on NSE at ₹704 per share.
Gold prices scaled a one-month peak on Friday, riding on a weaker U.S. dollar that has also put bullion on track for a third straight weekly gain.
Spot gold was steady at $1,867.33 per ounce, as of 0539 GMT, after hitting its highest level since May 9 of $1,873.79. Gold prices have risen about 0.8% so far this week.
U.S. gold futures edged up 0.1% to $1,872.10.
The dollar edged lower, making greenback-priced bullion more attractive for overseas buyers.
Mukesh Ambani has surpassed Gautam Adani to regain the spot of Asia's and India's richest man as Reliance Industries (RIL) shares continued to surge to trade near record high levels.
Rice farmers in India, the top exporter, will be working full tilt this growing season to take advantage of a good monsoon and prospects that the government will boost grain purchases to safeguard food security.
Rice has come into focus recently on worries that India may restrict exports of the crop next, after similar moves in wheat and sugar. Ample production will ensure the country has enough rice supplies and allay concern about curbs on overseas sales, which could have a devastating impact on global food security.
Charanjit Singh Gill, a farmer in Punjab -- a region known as the country’s food bowl -- said he will keep planting rice as it’s the best option during the rainy season. Rice in most Asian farms requires large amounts of water to grow.
Asian equities rose Friday following a strong performance on Wall Street ahead of a key US jobs data release, while crude gave up some of the previous day's gains after an output hike disappointed traders.
A below-forecast reading on US private jobs offered some support to New York, even as inflation and interest rate hike concerns remained major headaches.
While observers said the reading from payroll firm ADP was not usually a good guide for the official report, a soft number on Friday could give the Federal Reserve a little room to ease off its rate hike drive and provide a much-needed boost to sentiment.
We have seen some recovery in the equity market in the last few trading sessions on account of positive global cues in which India VIX recovered by 20% in the last one week to 20 odd levels (currently below the long-term average). In FY23, so far, FIIs pulled out $ 9 Bn from the Indian equity market while DIIs have added $11 Bn. 80% of the FIIs outflow is from the Financial and Tech sector in the last eight months as per NSDL data. The pace of selling has reduced in the last few trading sessions, creating positive sentiments in the domestic market. Currently, the market is eyeing the central bank's guidance on the interest rate trajectory. Both the RBI and FED meeting is scheduled in June and we have to wait and watch to see how central banks influence the path of interest rates trajectory to maintain growth and inflation dynamics. Keeping these developments in view, we expect the market performance to remain range-bound in the near term, and a clear trend is likely to emerge only if volatility stays at lower levels for a longer time. Investors should focus on asset allocation and use this volatility to build long-term positions in quality companies, where the earnings visibility is high.
Bank of Baroda (BoB) has revised its final dividend upwards to ₹2.85 per equity share for the FY 2021-22, subject to the shareholder's approval, from ₹1.20 per equity share its board had proposed to declare earlier.
Reliance share price: On account of Castrol India Limited joining hands with Reliance Jio BP to sell lubricants in India and market buzz about the company's mood to enter the EV charging infra business, shares of Reliance Industries Limited have surged closed to its record high. Reliance share price today opened with upside gap and went on to hit its intraday high of ₹2808 apiece levels on NSE, which is just ₹48 per share away from its life-time high of ₹2856.15 per share.
China’s foreign exchange reserves declined by US$130bn for Jan-Apr’22, despite cumulative trade surpluses of US$215bn over the period, suggesting substantial capital flight. This severely constrains China's ability to ease monetary policy, especially amidst a concerted global monetary tightening.
China's M2 money supply is up 500% since Aug'08 (pre-GFC), while US M2 has expanded only 180% over the period. China's record monetary growth (the biggest monetary expansion by any country in history) has funded massive over-capacity in industry and the property sector. As liquidity tightens globally, it is becoming progressively more difficult for China to maintain sufficient domestic liquidity to sustain demand for its vast industrial and real-estate capacity, with the latter particularly seeing downward price pressure.
China’s real GDP is unlikely to exceed 4.5% growth in 2022, well short of the 5.5% growth target set in this politically-crucial year, when the communist party’s politburo will be replaced with new members in Q4CY22. Global monetary tightening will reinin China's property market, and constrain FAI growth, likely tipping the financial system towards crisis. A receding Chinese growth engine enhances India’s importance to the global economy. And as China’s over-investment stalls, it creates room for India and other economies to get their investment cycles off the ground.
Rating: BUY | CMP: Rs888 | TP: Rs1,020
Sun Pharma (SUNP) reported strong EBIDTA growth of 21% YoY in FY22 aided by 1) global ramp-up of specialty products, 2) focus on domestic market and 3) steady ROW market. Company’s significant investments and efforts in specialty business has started paying off in upward trajectory with 39% YoY growth in FY22. Sustained momentum in specialty will help in improving operating leverage and margins too. Also, domestic formulations (32% of total revenue) continues to outperform IPM. Our FY23E and FY24E EPS stands marginally cut by 3% to factor in higher other expenses. We maintain our ‘Buy’ rating with revised TP of ₹1020 ( ₹1050 earlier) based on 25x FY24E earnings. SUNP remains our top pick in large cap space.
Shares of Greaves Cotton continued to surge for the second consecutive session on the BSE in Friday's early deals after the company announced that Saudi Arabian firm Abdul Latif Jameel International will invest in the firm's electric vehicle (EV) arm, Greaves Electric Mobility (GEM).
Greaves Cotton shares have surged 14% on this big bang deal. Read on to know more…
Asian shares followed their US peers higher Friday ahead of a key jobs report as traders weighed the outlook for inflation and growth.
Stocks rose in Japan, Korea and Australia while European futures pointed higher. US contracts fluctuated after Thursday’s 1.8% rise in the S&P 500 and a 2.8% jump in the tech-heavy Nasdaq 100.
Markets are shut in Hong Kong and China, where officials have vowed to carry out a slew of government policies to stimulate the economy. The offshore yuan rose amid thin trading in Asia.
After months of robust hiring, US employers might have pulled back slightly in May, to levels that would still be consistent with a healthy job market, despite high inflation and rising borrowing costs.
Economists have estimated that the nation added a solid 325,000 jobs last month, down from 428,000 in both March and April, according to forecasts compiled by FactSet, a data provider.
If so, that would snap a record-breaking streak of 12 straight months in which job growth had topped 400,000. The unemployment rate is expected to slip to 3.5 per cent — matching a half-century low — from 3.6 per cent.
The May jobs report the government will issue on Friday coincides with inflation near a four-decade high and worries about higher borrowing rates and a potential recession roiling the stock market.
OPEC+’s hotly anticipated output meeting on Thursday underwhelmed the market, with oil prices closing up after the decision.
Here’s what leading analysts had to say about the OPEC+ decision and what it would mean for oil prices.
Goldman Sachs Group Inc.
The latest OPEC+ decision translates to an increase of 200,000 barrels a day in summer output levels with Russia still keeping its quota share and many countries falling behind target, analysts Damien Courvalin and Callum Bruce said in a note. The deal doesn’t represent higher output levels for later this year, with production simply brought forward from September.
The bank continues to see downside risks to its OPEC+ supply expectations for the second half of this year, given the European ban on Russian oil imports and the lack of progress on negotiations with Iran. Goldman reiterated its Brent forecast of $125 a barrel in the second half.
ING Groep NV
The supply increases look big on paper, but it’s very unlikely that the group will actually manage to hit these production targets, Warren Patterson, ING’s Singapore-based head of commodities strategy, said in an interview. Russian output is likely to edge lower in the months ahead as sanctions bite, while there is limited spare output capacity among the OPEC+ coalition. The bank maintained its forecast for Brent to average $122 a barrel in the second half.
Citigroup Inc.
The decision by OPEC+ could, in practice, mean 132,000 barrels a day each month of actual additional output from Saudi Arabia, the United Arab Emirates, Kuwait, and Iraq, Citi analysts Eric Lee and Francesco Martoccia said in a note. Prices have been marching higher in the past week as markets assessed the European Union move to block Russian oil imports, Chinese lockdowns were lifted and the US summer driving season got underway, it said.
The growth in India's dominant services continued to grow in May, expanding at the fastest pace in 11 years in May on strong demand and new orders, according to a private survey. The S&P Global India Services Purchasing Managers' Index rose to 58.9 in May from 57.9 in April, its highest since April 2011.
Rakesh Jhunjhunwala portfolio: After ushering in the New Year 2022, Tata Motors share price has remained under consolidation this year. However, the flagship Tata group company stock has started to give upside movement after closing at ₹372.30 apiece levels on NSE on 12th May 2022. Tata Motors share price today is around ₹445 and market experts are expecting this consolidation phase of Tata Motors shares to end soon. They said that Rakesh Jhunjhunwala stock may go up to ₹480 levels in short term.
Cement giant Ultratech Cement Ltd on Thursday announced a 22.6mtpa increase in its grinding capacity at a capital expenditure of Rs12,886 crore. Mtpa is short for million tonnes per annum. The capacity increase would be through a mix of brownfield and greenfield expansions.
Indian shares rose to a four-week high on Friday and were set for their third straight weekly gain, propped up by a strong recovery in beaten-down technology stocks.
The NSE Nifty 50 index was up 0.85% at 16,770.1, as of 0402 GMT, while the S&P BSE Sensex rose 0.95% to 56,350.21. The indexes are set for weekly advances of 2.5% each, if gains hold.
The Nifty IT index rose as much as 2.4% and was set for a weekly gain of around 6%, after declining for eight consecutive weeks. The index has dropped 23% so far this year.
Shares of UltraTech Cement reversed early gains to fall up to 2.5% after the company said it would spend 128.86 billion rupees ($1.66 billion) to increase its annual capacity as it looks to stave off competition from the sector's newest entrant Adani Group.
The rupee appreciated 13 paise to 77.47 against the US dollar in opening trade on Friday, supported by a fall in the dollar index and positive domestic equities.
At the interbank foreign exchange, the rupee opened at 77.47 against the American dollar, registering a rise of 13 paise from the last close.
On Thursday, the rupee had settled at 77.60 against the US dollar.
According to Sriram Iyer, Senior Research Analyst at Reliance Securities, the Indian rupee opened stronger against the dollar on Friday tracking the overnight weakness of the dollar.
Shares of Aether Industries made positive stock market debut on Friday with the stock listing at ₹704 apiece on the NSE, a premium of more than 9% as compared to its IPO issue price of ₹642 per share. On the BSE, eMudhra shares started trading at ₹706.
Multibagger stock: Rattanindia Enterprises share price has been appreciating after the announcement of its strong Q4 results. Amongst one of the multibagger stocks in 2021, RattanIndia shares have hit upper circuit on four successive days in a row as it has been hitting upper circuit since Monday. In its Q4 results announced on Monday via Indian exchanges, the drone maker company ahs reported total income of ₹47.90 crore against ₹0.53 crore in Q3 FY22 and ₹0.76 crore in Q4FY21.
Shares of Aether Industries are going to hit Indian bourses today. As per the information available on BSE website, Aether Industries shares are going to become available for trade on NSE and BSE from 3rd June 2022m as Aether IPO listing date has been fixed on 3rd June 2022 i.e. today. The BSE website further informed that shares of the chemical company will be listed in a special per-opening session at around 10 AM today.
Bonus shares 2022: Multibagger penny stock Mishtann Foods Ltd has informed Indian exchanges that the meeting of the board of directors of the company is scheduled on 9th June 2022 to consider and approve allotment of bonus shares. The company has already announced the proposal to issue 1:1 bonus shares to eligible shareholders of the company. In its communication with BSE, Mishtann Foods Ltd has revised its record date for bonus share and now company board has fixed record date for bonus share issue on 3rd June 2022 i.e. today.
Cryptocurrency prices today gained with Bitcoin rebounding after slumping along with stocks in the previous session, meeting resistance at the $30,000 level around which it’s been trading for the past month. The world's largest and most popular cryptocurrency rose more than 2% and was trading at $30,622.
Gold prices scaled a one-month peak on Friday, riding on a weaker US dollar that has also put bullion on track for a third straight weekly gain. Spot gold was up 0.2% at $1,871.28 per ounce, as of 0214 GMT, its highest level since May 9. Gold prices have risen about 1% so far this week. US gold futures also climbed 0.2% to $1,874.50. The dollar edged lower, making greenback-priced bullion more attractive for overseas buyers.
The dollar wobbled toward its first steady week in three on Friday as traders looked to U.S. jobs data later in the day for clues as to how far and fast the Federal Reserve might raise interest rates.
Markets have locked in consecutive 50-basis-point Fed hikes in June and July but the dollar has been pushed around this week by uncertainty about what happens after that.
The dollar rose through the early part of the week on nerves that record high inflation in Europe was a harbinger of sharply higher rates everywhere. But it fell overnight and stocks rallied as mixed U.S. economic data muddied the outlook.
The dollar lost about 0.9% on the euro on Thursday, falling to $1.0750. It fell further to $1.0760 early in an Asia session thinned by holidays in China and Hong Kong. A holiday in Britain is also likely to thin London trade.
Asian shares followed their US peers higher Friday ahead of a key jobs report as traders weighed the outlook for inflation and growth.
Stocks rose in Japan, Korea and Australia while US futures fluctuated. On Thursday, the S&P 500 rose 1.8%, led by gains in consumer discretionary shares, while the tech-heavy Nasdaq 100 added 2.8%.
Markets are shut in Hong Kong and China, where officials have vowed to carry out a slew of government policies to stimulate the economy. The offshore yuan rose amid thin trading in Asia.
A Bloomberg gauge of the dollar steadied after overnight losses while the yen held near the psychologically important 130 level against the greenback. Benchmark Treasury yields edged up to 2.92%.
Oil prices were roughly unchanged on Friday, clinging to gains made in the previous session on doubts that producers belonging to OPEC+ can hike their crude output enough to make up for lost supply from Russia.
U.S. West Texas Intermediate (WTI) crude futures were up 1 cent at $116.88 a barrel at 0112 GMT, while Brent crude futures were up 7 cents at $117.68 a barrel.
A decision on Thursday by the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, to boost output by 648,000 barrels per day (bpd) in July and August, instead of by 432,000 bpd as previously agreed, was seen as hardly enough for a tight market.
The increases were divided proportionally across the member countries, but with Russia included in the pact and members like Angola and Nigeria already failing to meet their existing targets, analysts said the supply increase was likely to be less than the announced volume.
Tokyo stocks opened higher on Friday, extending rallies on Wall Street ahead of US jobs data due later in the day.
The benchmark Nikkei 225 index was up 0.92 percent, or 251.42 points, at 27,665.30 in early trade, while the broader Topix index advanced 0.60 percent, or 11.52 points, to 1,937.91.
Friday is "a positive day for risk sentiment ahead of US payrolls tonight on no new news," said Tapas Strickland, senior economist at National Australia Bank, noting that US equities were up and Treasury yields were stable.
Wall Street stocks rallied after two negative sessions ahead of key jobs data, as markets fixate on the implications for inflation and monetary policy.
Global equity markets rose while U.S. yields were lower on Thursday after lower-than-expected private payrolls data stirred hopes that the American economy was likely cooling and the Federal Reserve might be persuaded to modify its aggressive stance on interest rates and inflation.
The ADP National Employment Report on Thursday showed that private payrolls rose by 128,000 jobs in May, which was much lower than the consensus estimate of 300,000 jobs and suggested that demand for labor was starting to slow.
If the private payrolls data is reaffirmed by the Labor Department's more comprehensive jobs report on Friday, then the Fed would be unlikely to continue its pace of rate hikes, said Sandy Villere, portfolio manager at Villere & Co in New Orleans.
The MSCI world equity index, which tracks shares in 50 countries, was up 1.42%. The pan-European STOXX 600 index gained 0.57%.
U.S. Treasury yields pulled back from recent highs ahead of the closely watched employment report and what it could indicate about the possible trajectory of interest rates.
On Wall Street, the S&P and the Dow rallied from earlier session losses and closed higher, with stocks in technology, consumer discretionary, communication services and financials sectors leading the rebound.
The Dow Jones Industrial Average rose 1.33% to 33,248.28, the S&P 500 gained 1.84% to 4,176.82 and the Nasdaq Composite added 2.69% to 12,316.90.
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