PremiumIndian indices on Tuesday recouped most of the intra-day losses with the help of gains in oil & gas, metal, and auto sectors, before closing the session marginally higher amid volatility. Asian shares rose after the China announced easing of Covid restrictions and European stocks opened firmly in the green which sent the MSCI's benchmark for global stocks into positive territory and on track for its fourth consecutive daily gain. Shares rose in Japan, Australia, Hong Kong, Shanghai, and South Korea.
Indian indices halted their three-day gain on Tuesday amid weak global market trends and persistent foreign fund outflows.
The Sensex gained 16.17 points, or 0.03%, to close at 53,177.45, while Nifty50 added 18.15 points to end at 15,850.20. Sectorally, oil & gas, energy, and metals performed well, while consumer durables and telecom declined.
On the 30-stock index, M&M, Reliance, Tata Steel, and DRL were the top performers, while Titan, Asian Paints, and Bajaj twins were among the biggest losers.
On the Nifty50 index, ONGC, Hindalco, M&M and Coal India registered the biggest gains, while Titan, Asian Paints, and Bajaj Finserv were the biggest laggards.
Rupee plunged 44 paise to close at record low of 78.81 (provisional) against US dollar.
Global shares moved into positive territory on Tuesday while oil prices firmed following China's decision to ease some quarantine requirements for international arrivals that raised hopes for stronger growth and a revival in demand for commodities.
China slashed the quarantine time for inbound travellers by half in a major easing of one of the world's strictest COVID-19 curbs, which have deterred travel in and out of the country since 2020.
Asian shares rose after the announcement and European stocks opened firmly in the green which sent the MSCI's benchmark for global stocks into positive territory and on track for its fourth consecutive daily gain.
Crude oil prices on Tuesday rose by ₹129 to ₹8,767 per barrel as participants widened positions on a firm spot demand.
On the Multi Commodity Exchange, crude oil for July delivery traded higher by ₹129 or 1.49 per cent at ₹8,767 per barrel in 7,696 lots.
Analysts said the raising of bets by participants kept crude oil prices higher in futures trade.
Globally, West Texas Intermediate crude oil was up by 1.92 per cent at USD 111.67 per barrel, and Brent crude traded 1.93 per cent higher at USD 117.31 per barrel in New York.
Gold prices on Tuesday increased by ₹182 to ₹50,831 per 10 grams in futures trade as speculators created fresh positions on a firm spot demand.
On the Multi Commodity Exchange, gold contracts for August delivery traded higher by ₹182 or 0.36 per cent at ₹50,831 per 10 grams in a business turnover of 11,628 lots.
Fresh positions built up by participants led to the rise in gold prices, analysts said.
Globally, gold was trading 0.19 per cent higher at USD 1,828.30 per ounce in New York.
Cottonseed oil cake prices on Tuesday declined by ₹24 to ₹2,624 per quintal in futures trade as participants reduced their bets tracking a weak trend in spot market.
On the National Commodity and Derivatives Exchange, cottonseed oil cake for July delivery fell by ₹24 or 0.91 per cent to ₹2,624 per quintal with an open interest of 72,550 lots.
Analysts said sell-off by participants at existing levels amid subdued trend in market mainly weighed on cottonseed oil cake prices.
European shares rose on Tuesday, led by commodity-linked stocks and automakers after China relaxed its COVID-19 quarantine mandate, with investors eyeing the European Central Bank's (ECB) annual forum for clues on monetary policies.
The continent-wide STOXX 600 index was up 0.7%, rising for a third straight session amid easing concerns about aggressive central bank policy moves to tame red-hot inflation.
Europe's oil & gas and mining stocks gained 2.1% and 2.6%, respectively, as commodity prices rallied on hopes of a resurgence in demand from China, the world's second-biggest economy and top metals consumer.
Shares of TVS Motor Company has rallied more than 10% in the last five trading sessions as compared to a 2% rise in benchmark BSE Sensex on the back of the two wheeler manufacturer's big electric vehicles (EVs) push.
Gold and silver prices edged higher in Indian markets, tracking positive global cues. On MCX, gold futures rose 0.45% to nearly two-week high of ₹50,870 per 10 gram. Silver jumped 0.8% to ₹60,444 per kg. In global markets, gold prices edged up 0.2% to $1,825.99 per ounce, following a slight pullback in US bond yields. However, the dollar index was steady. Its strength has put a lid on prices of greenback-priced bullion in recent weeks.
After climbing to 52-week high of ₹287 apiece levels in second fortnight of April 2022, Minda Corporation share price has remained under base building mode for the last two months. However, the auto stock has started giving fresh upside swing in last few session giving an indication that the stock is about the come out of the consolidation phase. As per the ICICI Direct research report, Minda Corporation share price may go up to ₹260 apiece levels in long term from current ₹190 per share mark.
The rupee fell 41 paise to hit its intra-day record low of 78.78 against the US dollar on Tuesday, weighed down by persistent foreign capital outflows.
At the interbank foreign exchange, the rupee opened at 78.53 against the American dollar, then fell further and touched its intra-day record low of 78.78, registering a fall of 41 paise from the last close.
On Monday, the rupee declined by 4 paise to close at its life-time low of 78.37 against the US dollar.
The Indian rupee hit record lows against the U.S. currency on Tuesday after higher oil prices raised concerns of sustained inflation, although intermittent dollar selling by the central bank helped limit losses.
The partially convertible rupee was trading at 78.75/76 per dollar by 0745 GMT, compared to its close of 78.34 on Monday. The unit touched an all-time low of 78.7750 just earlier in the session.
India imports more than two-thirds of its oil requirements, and higher crude prices add to the country's trade and current account deficits (CAD) and hurt the rupee by pushing up imported inflation.
Rating: BUY | CMP: Rs255 | TP: Rs310
NOCIL’s growth prospects look encouraging given 1) favorable demand environment in domestic and export markets driving healthy volume growth (+16% YoY in FY22) 2) sufficient capacity headroom enables capturing demand improvement 3) moderate competitive intensity with higher environment compliance costs in China leading to better level playing field 4) Zero debt balance sheet and healthy free cash flow generation of ₹4.3 bn over FY23-24E provides comfort though crude oil at elevated levels (above USD 100/ bbl) and increase in supplies by Chinese competition pose risk to volume and spreads in FY23/24. We forecast volume growth of 12% CAGR over FY22-24E and tweak estimates to factor improvement in spreads aided by full pass through of cost inflation coupled with operating leverage benefits as it attains higher capacity utilization levels (EBITDA margin at 18.7%/19.6% in FY23/24). Maintain BUY with a revised TP of Rs310 based on 12x FY24 EV/EBITDA implying 19.5x FY24 EPS of ₹16.0.
The Nifty realty index is down 31% from November 2021 peak, bringing the sector valuations (PBx) to within 10% of their past 10-yr average valuations. Given sector consolidation, better corporate balance sheets and a rising cycle, global brokerage Jefferies believes realty stocks should trade higher despite rising interest rates.
An Indian monetary policy dove signaled it’s probably time to abandon the aggressive pace of increases in borrowing costs, saying the inflation-adjusted real interest-rate is approaching neutral terrain -- a level where it can help check inflation without stifling economic growth.
Sticking to larger hikes instead carries the risk of crimping an already weak demand without materially softening inflation, Ashima Goyal, one of the six members of the Monetary Policy Committee, warned in an email interview, adding that she isn’t speaking on behalf of the full MPC.
“Indian real interest rates are not far from neutral," she said, referring to benchmark rate that’s risen to 4.9%, amid inflation easing to 7% in May from 7.8% in the previous month
Asian shares were mostly higher Tuesday after a wobbly day on Wall Street as markets cooled off following a rare winning week.
Oil prices pushed higher and U.S. futures also advanced.
Rising energy prices and Treasury bond yields were weighing on sentiment after last week's rally, and investors were awaiting remarks expected for midweek by central bank leaders including Federal Reserve Chair Jerome Powell and European Central Bank chief Christine Lagarde, analysts said.
Investors will get an update on U.S. economic growth on Wednesday when the Commerce Department releases a report on first-quarter gross domestic product. U.S. consumer confidence data is also on the agenda in a week that has few other major economic releases. So some investors have adopted a “wait and see" stance, said Jun Rong Yeap of IG.
Bajaj Auto share price: After the announcement of Bajaj Auto share buyback by board of directors of the company, stock market experts have gone bullish on the auto stock despite investors giving tepid response to the scrip. Bajaj Auto share price today opened downside and went on to hit intraday low of ₹3783.05 apiece levels on NSE, around 2 per cent lower from its Monday close of ₹3861 per share levels. However, the stock is showcasing some signs of recovery in mid-session.
Is it time to dump your growth stocks now that value investing is making a comeback?
Shares of food delivery firm Zomato plunged more than 7% to ₹61 apiece on the BSE in Tuesday's early deals, heading for its second straight session of losses after announcing a deal to buy local grocery-delivery startup Blinkit. The stock has plunged about 14% in the last two trading sessions.
Paytm share price been rising continuously after dipping to its new low of ₹510.05 apiece levels in May 2022. Paytm shares opened higher for the fourth successive session in Tuesday's deals and went on to make its intraday high of ₹723.60 per share levels on NSE, recording around 2 per cent rise in intraday session.
Tokyo stocks ended higher on Tuesday after a choppy session that saw both buying, especially of energy stocks, and profit-taking.
The benchmark Nikkei 225 index bounced back from the negative territory to end up 0.66 percent, or 178.20 points, at 27,049.47, while the broader Topix index firmed 1.06 percent, or 19.96 points, at 1,907.38 yen.
Gold prices edged up on Tuesday as U.S. Treasury yields weakened, but the absence of any market-moving catalysts kept investors on the sidelines.
Spot gold was up 0.2% to $1,825.99 per ounce by 0536 GMT. U.S. gold futures firmed 0.1% to $1,827.30.
Benchmark U.S. 10-year Treasury yields eased slightly after rising on Monday, buoying demand for non-yielding gold.
Prime Minister Narendra Modi underlined at the G7 summit that energy security has become a very challenging issue in the wake of the Russia-Ukraine conflict and asserted that India would continue to do what it thinks is best in the interest of its own energy security when it comes to the question of global oil trade.
Prime Minister Modi in both his interventions at the G7 sessions made India's position very clear on the Russia-Ukraine situation, calling for an immediate or as early as a possible end to the hostilities and advocating the path of dialogue and diplomacy to resolve the situation, Foreign Secretary Vinay Mohan Kwatra said at a media briefing.
The Indian rupee today fell to a new record low against the dollar amid weakness in domestic shares. A rise in global crude prices also weighed on the domestic currency. The rupee fell to 78.68 against the US dollar at day's lows. On Monday, the rupee declined by 4 paise to close at its life-time low of 78.37 against the US dollar.
Infosys, a global leader in next-generation digital services and consulting, today announced that it has been selected by Australian express logistics business, Global Express, to separate the technology landscape following divestment from Toll Holdings Ltd. Building on its strategic collaboration with Global Express to drive hybrid cloud-powered innovation, Infosys will leverage the established blueprints and tools from Infosys Cobalt, a set of services, solutions and platforms for enterprises to accelerate their cloud journey,
The euro held onto its recent gains on Tuesday ahead of European inflation figures this week that are expected to run hot and a speech from central bank chief Christine Lagarde, while a rally in oil prices boosted commodity currencies.
The euro rose 0.28% overnight and at one point poked above its 50-day moving average. It last sat at $1.0574.
The dollar held modest overnight gains on other currencies and traded at 135.33 yen and $0.693 per Australian dollar in the Asia session.
German inflation figures are due on Wednesday, French data on Thursday and euro zone numbers on Friday. European Central Bank President Lagarde is also due to speak at the ECB forum in Sintra, Portugal, at 0800 GMT on Tuesday.
Global financial services and rating firm Moody's Investors Service has changed the outlook on steelmaker Tata Steel to positive from stable.
Tata Steel is a leading steel producer with manufacturing facilities in India, the UK, the Netherlands, and Southeast Asia.
The company generated consolidated revenues of $32.8 billion during the financial year that ended in March 2022.
Bajaj Auto share buyback: The board of directors of Bajaj Auto Limited has approved the proposal for buyback of company's shares at ₹4600 per share buyback price. The share buyback will be done from open market through stock exchange mechanism. The company board approved this buyback in its meeting held on 27th June 2022 i.e. on Monday. The board also made it clear that Bajaj Auto share buyback won't exceeding ₹2500 crore.
Pharmaceutical company Cipla will acquire an additional stake worth ₹25.90 crore in digital tech company GoApptiv, thus increasing its stake in the latter to 22.02 per cent, it said in a regulatory filing to the stock exchanges.
Established in 1935, Cipla is a global pharmaceutical company focused on India, South Africa, North America, and other emerging markets, and its strength lies in respiratory, anti-retroviral, urology, cardiology, and anti-infective segments.
The process is likely to be completed within 30 days or such other date mutually agreed between the parties, the regulatory filing said.
Glenmark Pharmaceuticals Ltd on Tuesday said it has acquired the approved generic versions of certain over-the-counter drugs from Wockhardt Ltd in the US.
The acquisition by the company's fully-owned subsidiary Glenmark Pharmaceuticals Inc, USA includes the approved abbreviated new drug applications (ANDAs) for famotidine tablets, 10 mg and 20 mg used to treat and prevent ulcers in the stomach and intestine, the company said in a statement.
The company, however, did not disclose the financial details.
Mahindra & Mahindra (M&M) on Monday launched the much awaited Scorpio N, priced at ₹11.99 -19.5 lakh (ex-showroom) in five variants across seven colors. Scorpio N is likely to open for booking on 30th July, 2022 while delivery is expected start during festive period.
A total of two stocks have been put under the ban for trade on Tuesday, June 28, 2022 under the futures and options (F&O) segment by the National Stock Exchange (NSE). The securities have been put on ban under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE.
Bankers in India recorded their best-ever quarter for mergers and acquisitions while dealmaking elsewhere slows to a crawl.
Route Mobile buyback: The board of directors of mid-cap company Route Mobile is going to consider the proposal for buyback of shares in its scheduled meeting today. After an interim dividend of ₹3 per equity share paid in FY22, this will be the second opportunity for Route Mobile shareholders to gain from other than route Mobile share price appreciation.
The National Anti-profiteering Authority has found Indiabulls Real Estate guilty of not passing on over ₹6.46 crore input tax credit benefits to homebuyers by commensurate reduction in prices post rollout of GST.
After three consecutive sessions of rally, domestic equity indices declined in the opening deal on Tuesday on weak overnight cues from the US markets.
Notably, the domestic indices declined during the majority of the sessions so far in June.
Major stock indices in the US posted their biggest declines in more than a week on Monday, said Deepak Jasani, Head of Retail Research of HDFC securities.
Also, concerns of consistent fund outflows from India by foreign portfolio investors as well as rising global crude oil prices weighed on the investors' sentiment.
Besides the Indian indices, other major Asian shares too declined in early trade on Tuesday with investors taking their cues from a volatile overnight session in the US.
The rupee depreciated 22 paise to a record low of 78.59 against the US dollar in opening trade on Tuesday as persistent foreign funds outflows weighed on investor sentiments.
At the interbank foreign exchange, the rupee opened on a weak note at 78.53 against the American dollar, then lost ground to quote at 78.59 -- its all-time low level, registering a fall of 22 paise from the last close.
On Monday, the rupee declined by 4 paise to close at its life-time low of 78.37 against the US dollar.
Multibagger stock: Investing in penny stocks is considered highly risky as a single trigger leads to high volatility in the scrip. However, if a company's business is sustainable and its economic viability is expected to remain maintained, high risk traders invest in penny stock to get alpha return in small time. Mishtann Foods shares are glaring example of it. The dividend paying stock, which announced interim dividend twice in FY22 has given more than 200 per cent return in last one year whereas it has been hitting upper circuit for last five sessions.
Priti International Limited is a small-cap company which ended with a market cap of ₹122 crore on Monday session. The company has recently announced preferential issue that probably has boosted the morale of market investors. The furniture company announced 30,11,000 warrants convertible into 30,11,000 equity shares of ₹10 each on preferential basis. The company informed about the approval of preferential issues to the NSE on 24th June 2022 and the stock hit upper circuit on Monday.
In cryptocurrencies, the world's largest and most popular cryptocurrency Bitcoin plunged over 2% and was trading at $20,610. The global cryptocurrency market cap today was below the $1 trillion, and was down over 3% in the last 24 hours to $964 billion, as per CoinGecko.
Rakesh Jhunjhunwala portfolio: After weak listing on 10th December 2021, Star Health and Allied Insurance share has been nosediving continuously. On Monday, Star Health share price hit a new life-time low of ₹511 apiece on NSE. Earlier, on Friday and Thursday too, this Rakesh Jhunjhunwala stock had hit fresh 52-week low. Comparing the Star Health share price today with Star Health IPO price band of ₹870 to ₹900 per share, this Rakesh Jhunjhunwala portfolio stock has corrected to the tune of 43 per cent that may attract positional long term investors.
8 stocks to buy or sell today — 28th June
Gold prices were nearly flat on Tuesday, as recent gains in Treasury yields prevented any significant interest in bullion. Spot gold was last up 0.1% at $1,824.65 per ounce by 0056 GMT. U.S. gold futures were flat at $1,824.70. A move by Britain, the United States, Japan and Canada to ban new imports of Russian gold is being seen as largely symbolic within the global bullion market, as Russian exports to the West have already dried up.
Oil rose for a third session as threats to global output risked tightening the market further before OPEC+ meets this week to discuss supply.
West Texas Intermediate futures climbed above $110 a barrel after adding about 5% over the past two sessions. Libya is facing more disruptions to its exports due to a worsening political crisis, while anti-government protests in Ecuador threaten to shut down production in the former OPEC member.
Any halt to supply could reverberate through the global oil market, which has been squeezed by an economic rebound and upended trade flows from Russia after its invasion of Ukraine. Some OPEC+ members have struggled to meet their production targets this year, exacerbating the tightness.
Asian shares edge down in early trade on Tuesday with investors taking their cue from a volatile Wall Street session overnight, while oil prices climbed following last week's rout.
Oil continued to rise with investors still weighing worries over an economic slowdown against concern over lost Russian supply amid sanctions related to the conflict in Ukraine.
"A seam of tight supply news bolstered the (oil) market," analysts at Commonwealth Bank of Australia said in a research note. "Political unrest might curtail supply from a couple of second-tier producers, Ecuador and Libya. And then there's the G7's proposed price cap on Russian oil."
Early in the Asian trading day, MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.7%. The index is down 3.8% so far this month. U.S. stock futures, the S&P 500 e-minis, were up 0.27%.
Australian shares were up 0.25%, while Japan's Nikkei stock index rose 0.5%.
China's blue-chip CSI300 index was 0.4% lower in early trade. Hong Kong's Hang Seng index opened down 0.36%.
Australian shares climbed on Tuesday, lifted by miners and energy stocks, as easing of COVID-19 restrictions in China boosted prices of commodities.
The S&P/ASX 200 index rose as much as 0.4% by 0043 GMT, its highest level since June 14. The benchmark jumped 1.9% on Tuesday.
Leading gains on the benchmark, energy stocks climbed 2.5% to hit a near one-week high.
Tokyo stocks traded higher Tuesday on bargain-hunting, having opened down following falls on Wall Street.
The benchmark Nikkei 225 index was up 0.37 percent, or 100.42 points, at 26.971.69 in morning trade, while the broader Topix index was up 0.60 percent, or 11.33 points, at 1,898.75 yen.
US stocks ended a volatile trading session slightly lower on Monday after posting sharp gains the week before, while oil prices and Treasury yields rose.
Oil climbed following last week's rout, as the Group of Seven nations promised to tighten the squeeze on Russia's finances with new sanctions that include a plan to cap the price of Russian oil.
Investors have been hoping oil's slide from three-month peaks hit earlier in June could ease overall inflation concerns and allow the U.S. Federal Reserve to tighten policy less aggressively than initially feared.
Stocks moved between gains and losses during the session on Wall Street, with big growth shares leading the way down.
The S&P 500 earlier this month confirmed it is in a bear market.
The Dow Jones Industrial Average fell 62.42 points, or 0.2%, to 31,438.26, the S&P 500 lost 11.63 points, or 0.30%, to 3,900.11 and the Nasdaq Composite dropped 83.07 points, or 0.72%, to 11,524.55.
The pan-European STOXX 600 index rose 0.52% and MSCI's gauge of stocks across the globe gained 0.31%.
A further easing of COVID-19 restrictions in China helped to support global indexes.
The 10-year note rose 7 basis points to 3.194% and the two-year's yield, which can herald rate expectations, gained 6.9 basis points to 3.126%.
Brent crude futures settled up $1.97, or 1.7%, at $115.09 a barrel, while U.S. West Texas Intermediate crude closed up $1.95, or 1.8%, at $109.57.
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