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PremiumInvestors turn positive once again amidst encouraging global cues. Most of the optimism was generated by a bet by investors that Fed will be pausing future rate hikes along with a strong domestic economy. However, worries about a possible recession and profit booking kept a check on the gains.
Indian shares inched higher on Friday amidst volatility as investor appetite for risky assets improved on bets that the U.S. Federal Reserve could pause its interest rate hikes.
The blue-chip Nifty 50 gained 46 points to close above 18,500, at 18,34; Meanwhile, the benchmark S&P BSE Sensex advanced 118 points to end the week at 62,647. Thirteen out of 15 Nifty broad-based sectoral indices ended in the green on Friday.
Strong monthly sales boosted Hero MotoCorp Ltd as it surged more than 3% along with Apollo Hospitals and topped the charts. Hindalco, Tata Steel and M&M also gained in today's session. Infosys and Adani Enterprises shed more than a per cent each and were major laggards.
Most sectors ended up gaining in today's session with with Metal, Realty and PSU Bank indices leading the rally. IT and Energy ended in the red on Friday.
Asian stock markets followed Wall Street higher on Friday ahead of a US jobs update after Federal Reserve officials reignited hopes another interest rate hike might be postponed.
Japanese stocks rose on Friday with the benchmark Nikkei index closing at a three-decade high, after U.S. lawmakers voted to raise the debt limit and on signs central bankers are in no hurry to tighten the monetary policy. The Nikkei index advanced 1.21% to the highest close since July 1990. The broader Topix rose 1.55%.
Chinese stocks staged a sharp rebound as signs that the Federal Reserve is close to the end of its tightening cycle helped rekindle risk sentiment.
The Hang Seng China Enterprises Index rose as much as 4.3%, the most in three months, led by property and technology companies. The Hang Seng Tech Index, whose members are mostly growth names that usually benefit from a lower US rate, added as much as 4.9%. On the mainland, the CSI 300 benchmark advanced as much as 1.4%.
European stocks rose on Friday, with miners and real estate stocks in the lead as investors took comfort from the passing of the U.S. debt ceiling bill and hints that the Federal Reserve could pause its interest rate hiking cycle later this month.
UK's FTSE 100 rose on Friday as investors adopted a risk-on mood following the U.S. Senate's decision to pass a deal to avert a debt default, while shares of Dechra Pharmaceuticals hit a two-week high after the vet drugmaker agreed to be taken private.
Karnataka and Tamil Nadu will become $1 trillion economies over the next two years said former CEO of Niti Aayog and India's G20 Sherpa Amitabh Kant, according to media report. He said that the southern states in the country's ambition to grow to a $5 trillion economy.
Amitabh Kant was speaking at India Today Conclave South 2023 in a session on the role of southern states in 'Make in India.’
He said that the states will be key drivers at the 'forefront to really drive India's growth.' (Read More)
Mixed trend in demand for different categories of tea was observed during Sale-22, a Calcutta Tea Traders' Association (CTTA) official said here on Friday.
The demand for CTC leaf and Darjeeling tea increased while Orthodox leaf and Dust tea marked a weaker trend, he said.
The total demand reduced by 3.05 per cent along with reduced offered quantity during the auction as compared to last week, the official said.
The auction (Sale-22) was held on May 30 and 31.
According to CTTA data, the total offerings amounted to 98,644 packages (28,32,493 kg) comprising 36,056 packages of CTC leaf, 45,103 packages of orthodox, 4,441 packages of Darjeeling leaf and 13,044 packages of dust tea. (PTI)
Hardwyn India recorded a stellar buying sentiment on exchanges as investors accumulated to the smallcap stock before it could turn ex-date for its bonus issue and stock splits on June 5th. The stock has not just skyrocketed to its 20% upper circuit but also clocked a fresh 52-week high. Notably, the stock has continued on three-consecutive days gaining spree.
At the time of writing, Hardwyn's share price traded at ₹612.60 apiece up by ₹92.70 or 17.83% on BSE. The stock continues to see heavy buying flow from traders. (Read More)
India is studying plans to issue a tender for about half a million tons of green ammonia to spur emissions reduction in hard-to-decarbonize sectors like fertilizer production.
Talks are taking place between fertilizer manufacturers and the country’s renewable energy ministry to assess potential demand for the feedstock, Bhupinder Singh Bhalla, the department’s top bureaucrat, said in an interview.
Successful bidders would be offered incentives to help drive down costs of clean ammonia, which is produced using emissions-free green hydrogen and can be an alternative to natural gas for fertilizer firms. (Bloomberg)
Honda Motorcycle and Scooter India on Friday reported 6.6 per cent decline in total sales at 3,29,393 units in May 2023 as compared to the same month last year.
The company had sold 3,52,893 units in May 2022, Honda Motorcycle and Scooter India (HMSI) said in a statement.
Domestic sales last month stood at 3,11,144 units, down 3 per cent from 3,20,857 units in the year-ago period, it added. (PTI)
Mumbai-based advertising services agency Creativeland Asia Network Ltd. said its company Creativeland Studios has acquired 62% of London-based production company Creators Inc. in a total deal value exceeding £3 million ( ₹30.9 crore). With this, the company will enter the international long and short content production market.
Creativeland Asia Network (CLAN) has launched Creativeland Studios to focus on the growth of its long and short-format cinema and TV content production team. It makes, produces and distributes films, documentaries, television series and audio content. Creativeland Studios has ten active advertisements which include two titles in production and will have over 50 titles in its pipeline. (Read More)
The government of Shehbaz Sharif in Pakistan is facing a difficult situation as the country is unwilling to meet the conditions set by the International Monetary Fund (IMF), which could lead to a default on its sovereign debt if the financing program expires at the end of June.
Additionally, Pakistan is experiencing its highest inflation rate on record since 1957, which puts further pressure on the government. In fact, Pakistan now has the highest inflation rate in Asia, surpassing Sri Lanka, with a rate of 38% in May 2023.
However, Sri Lanka's inflation rate has decreased to 25.2% after Pakistan overtook it in April 2023. (Read More)
Future Lifestyle Fashions Ltd has received a total claim of ₹2,155.53 crore from 12 financial creditors in the corporate insolvency resolution process (CIRP) initiated against this Future group company recently.
The resolution professional of the company has provisionally admitted claims of ₹2,117.03 crore and claims worth ₹38.5 crore are "under verification", said the latest data shared by Future Lifestyle Fashions Ltd (FLFL) on the exchanges.
As per the provision of the Insolvency & Bankruptcy Code, a Committee of Creditors (CoC) of FLFL has been formed and it will have its first meeting next week. (PTI)
The head of Amazon.com Inc's cloud division, Amazon Web Services, in India and South Asia, Puneet Chandok, has resigned, a company spokesperson told Reuters on Friday. (Reuters)
Shares of Kilitch Drugs (India) Ltd are one of those stocks that have delivered strong upside movement in the post-Covid rebound. This small-cap stock has risen from around ₹82 to ₹215 apiece levels in the last two years, delivering to the tune of a250 per cent rise in this time. The multibagger stock is in news again as the small-cap stock has been hitting upper circuit for the last two days after the announcement of fourth-quarter results.
After the declaration of Q4 results on Wednesday evening, the multibagger stock hit 5 per cent upper circuit on Thursday session within few minutes of stock market's opening bell. The small-cap stock extended its rally on Friday and went on to hit 5 per cent upper circuit after hitting intraday high of ₹215.70 apiece on NSE. So, in last two days after the announcement of Q4 results, the small-cap multibagger stock has surged over 10 per cent in last two days. (Read More)
IndusInd Bank shares are in focus today as the stock is trading ex-dividend today for payment of ₹14 per share final dividend to its eligible shareholders. IndusInd Bank share price today opened lower and went on to hit an intraday low of ₹1,271 apiece, logging around 1.50 per cent intraday loss within a few minutes of the stock market opening bell today.
However, stock market experts believe that dividend stock is one of the quality banking stocks in which every dip should be seen as buying opportunity. They said that IndusInd Bank shares are facing a strong hurdle at ₹1,300 apiece levels, but once it breaches this resistance decisively, the banking stock may go up to ₹1,420 apiece levels in the short-to-medium term. (Read More)
Zomato share price jumped almost 8 per cent in morning trade on BSE on Friday (June 2) amid reports of the revision of discounts at the Open Network for Digital Commerce (ONDC). Shares of Zomato opened at ₹69.40 against the previous close of ₹67.92 and rose 7.8 per cent to touch the intraday high of ₹73.20 in trade so far.
The stock got traction after media reports suggested that ONDC had revised its incentive scheme for network participants to reduce the dependency on discounts for adoption. "The revised incentives will come into effect from June 1, 2023, and succeed the programme rolled out first on January 30, 2023. The programme's current phase will be live until June 28, 2023," Moneycontrol reported. (Read More)
Foreign inflows into Indian stocks accelerated to a nine-month high in May as investors sought to capitalize on one of the fastest growth rates among major economies.
Overseas investors purchased a net $5 billion of the nation’s shares last month, the most since August, according to data compiled by Bloomberg. Global funds snapped up the stocks for 24 consecutive days through May 31, the longest streak since August 2016.
The buying spree has helped propel Indian equities to the top of emerging Asia’s leaderboard this quarter, with the Nifty 50 Index rallying more than 6%. A resilient domestic economy is a selling point, especially at a time when China’s recovery is losing momentum and the risk of a US downturn is growing. (Bloomberg)
Shares of Hero MotoCorp Ltd made considerable strides on Friday morning, surging nearly 3% upsurge on the National Stock Exchange following a strong May sales performance that outpaced analyst forecasts. This is on a day when the benchmark Nifty 50 index is flattish.
The Indian two-wheeler manufacturer reported a 7% year-on-year increase in its May wholesale volume to 519,474 units. Analysts at Motilal Oswal Financial Services estimated the company to clock 418,565 units.
The auto company's growth was in line with the overall strong show in the two-wheeler sector in May, partly fuelled by the ongoing wedding season. (Read More)
Spandana Sphoorty Financial, the microfinance company, announced Friday that its board has approved raising ₹100 crore through the issue of Non-Convertible Debentures (NCDs) with a green shoe option of ₹50 crore, on a private placement basis.
“...the Management Committee of the Board of Directors of the Company at its meeting held on Friday, June 02, 2023 has considered and approved the issuance of Listed, Secured, Senior, Redeemable, Transferable, Rated Non-Convertible Debentures up to ₹100,00,00,000 including green shoe option of ₹50,00,00,000 on a private placement basis," Spandana Sphoorty Financial said in a regulatory filing. (Read More)
India's paints industry has recently seen a spike in competition as new entrants strive to claim their piece of the market, potentially creating price pressures that could impact incumbent profitability.
This wave of new activity comes from companies such as Astral Ltd, Pidilite Industries Ltd, and JK Cement Ltd, who have all entered and bolstered their offerings in the paints sector in the fiscal 2023.
According to ICICI Securities' Paints Vulnerability Index, Kansai Nerolac Ltd and Akzo Nobel India Ltd will likely be relatively least impacted whereas Indigo Paints Ltd and Berger Paints (I) Ltd may be most impacted. It is worth noting here that Kansai has relatively higher exposure to the industrial paints segment, where competitive pressure is expected to be low. (Read More)
Apple Inc. is strategizing to enhance and rejuvenate its retail network with the goal of expanding its presence in China and other regions of Asia. Simultaneously, the company intends to revamp its existing stores in the United States and Europe.
According to a report by Bloomberg, Apple Inc. is in discussions to open 15 fresh stores in the Asia-Pacific region, five in Europe and the Middle East, and four in the United States and Canada by 2027. The company also plans to revamp or relocate six stores in Asia, nine in Europe, and 13 in North America. In total, Apple is proposing a total of 53 new, relocated, or renovated stores over the next four years. (Read More)
Manu Rishi Guptha, Founder of MRG Capital says: Positive global markets should have a positive impact on Indian markets in the opening trade but commodity prices which are inching up after steep falls might put a lid on market gains. Nifty index can outperform Bank Nifty again today and has support at 18450. Reliance and metal stocks could offer support to the markets today. Decent auto sales numbers particularly from 2-wheelers will help auto stocks like Hero Motors push higher. FMCG companies like HUL, Marico, Nestle all trading at their 52-week highs on improved monsoon forecasts will likely continue their positive momentum. Real estate is one more sector which has gained momentum and companies like Ashiana Housing which operate in smaller cities are gaining more investor attention and likely to trade positively today as well. This positive real estate sentiment is rubbing off on select consumer discretionary companies like Havells and Polycab which cater to home electric wiring demand. Cement companies on the other hand seem to have had their run up and might consolidate today as higher Crude will play spoil sport. Overall, like the past many days today too market is determined by stock-specific moves and see some volatility at index level within a range; 18450-18650 for Nifty and 43700-44200 for Bank Nifty.
The VIX ( Volatility Index ) is at historical lows in all global markets thereby depicting an “all is well – like never before" sentiment and that should be one reason to be cautious while being bullish. Bad news appears when no one is expecting it ever.
Coal India shares extended their losing steak for a fifth straight session during early morning deals on Friday. Coal India share price today opened lower and went on to hit an intraday low of ₹228.10 apiece levels on NSE.
The PSU stock has been falling ever since the Government of India (GoI) announced to offload its 3 per cent stake in Coal India Ltd. The Coal India OFS opened for subscription on 1st June 2023 and it is going to end on 2nd June 2023 i.e. today. However, if we look at the Coal India share price history, the stock has been falling since May 30, 2023.
According to stock market experts, Coal India shares are falling because of its OFS, which has been offered at ₹225 apiece. As current market price of the Coal India shares was quite high, Coal India shareholders started offloading their position fearing market adjustment after the announcement of Coal India OFS price. So, it is more a tactical sell off as fundamentals of the company are still strong. They advised positional investors to apply for the Coal India OFS and at the same time, they advised them to buy Coal India shares in ₹220 to ₹230 per share range for short term target of ₹260. (Read More)
We witnessed a stronger May as compared to April for 2Ws and PVs. PVs witnessed a faster easing of chip shortage issue in May, which we expect to witness going forward too, while 2Ws gained strength on low base of last year, marriage season, positive sentiments and both ICE and EV launches. Going forward, the impact of expected El Nino needs to be seen on the rural centric segments. CVs are witnessing a temporary dip on the back of BS VI phase-2 implementation, while underlying strength would keep the going strong. Tractor industry growth needs to be monitored as well on expected El Nino setting up in the coming monsoon.
We remain positive on the sector. However, our choice is in the following order –PVs, 2Ws and CVs. Stocks specifically, within the 2Ws, we like Bajaj Auto as we expect bounce back of exports 3-4 months down the line as $ scenario may improve in Africa. Also the EV strength gaining from Chetak and upcoming launch of e-3W can be additional positives. Domestically on the motorcycles side as well the company is posting very strong numbers. TVS too looks promising with its dominance in EV scooters and solid performance by its star performers like NTorq, Jupiter, Apache, Raider and the recently launched Ronin. While on the PV side, we like M&M because of its thrust on rural markets through its leadership in tractors business, prudent capital allocation and a robust growth strategy in UVs, EVs and CVs. We also like MSIL on the PV side because of its wide portfolio of vehicles and inroads into the SUV industry. We like Ashok Leyland within CVs as it has a diversified revenue base deriving from LCVs, Defence, MHCVs, exports and spares. Every dip in the stocks mentioned above, shall provide good opportunities for investors to enter into them from medium to long term perspective.
Info Edge share price saw marginal gains on Friday's early trade after the company's arm initiated a forensic audit into Rahul Yadav-backed proptech firm 4B Networks. This came after the company's arm Allcheckdeals India wrote down all of its investment in the 4B Networks, which it had made because it had not received the requested financial information. Info Edge shares opened at ₹3815.05 apiece on BSE.
The company stated in a filing with the exchanges that its wholly owned subsidiary company Allcheckdeals India invested in and occasionally provided finance to 4B networks totalling ₹288 crore, of which ₹276 crore was invested in shares and ₹12 crore was debt financing. (Read More)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: A dominant economic trend which has implications for investment is India’s improving economic fundamentals in a challenging global environment. Apart from the better-than-expected FY23 GDP growth rate, high-frequency indicators like GST collections, manufacturing PMI, auto sales in May and impressive credit growth indicate a robust and steadily improving economy. FY24 GDP growth is likely to be revised up to around 6.5 % and consequently, corporate earnings for FY24 also will be revised up. This scenario, in the context of inflation (4.7% in April) coming within RBI’s tolerance limit and peaking of interest rates, augurs well for equity markets in H2 of CY2023. An important trend in the market is the outperformance of the broader market. Expect lots of stock-specific action even within the range-bound movement of the Nifty.
Gold rate today inched higher after European Central Bank President Christine Lagarde signalled a possible rate hike in the upcoming meeting. The gold future contract for August 2023 expiry opened higher at ₹60,301 per 10 gm levels and went on to hit intraday high of ₹60,351 per 10 gm levels. Gold price today is oscillating around $1,981 per ounce levels, logging around a 0.25 per cent rise in early morning deals at Asian stock market bourses.
Likewise, the silver rate today opened higher and made an intraday high of ₹72,999 per kg. In the international market, silver price is oscillating around $23.95 per ounce levels, logging around 0.30 per cent intraday rise in early morning deals. (Read More)
The registration of electric two-wheelers soared 57% in May to reach one lakh units for the first time in a single month, as buyers flocked to e-bike showrooms in droves, anticipating a 15-20% price hike starting in June, and making reservations for vehicles at lower prices with a larger FAME-II subsidy.
Penetration of electric two-wheelers in the segment crossed 7% in the month of May for the first time on account of this pre-buying—up 160 basis points from April, when penetration stood at 5.4%. Total e-scooter registrations in May exceeded 1.05 lakh units, with Ola Electric at just over 27% market share, TVS Motor Co. gaining a lead at the second spot with an increased market share of 19.3% and Ather Energy being the third-largest player at 14.6% market share. (Read More)
Brazil’s Embraer is in talks with India’s Tata and Mahindra groups, among others, for an aircraft manufacturing partnership, top company executives said, as the world’s third-largest passenger jet maker works to expand its India foothold.
“Tata told us that they would first start with focus on big aircraft, and that involves Airbus and Boeing. After that, they would look at more regional aircraft, and there is the market where we are," president and chief executive officer (CEO) Francisco Gomes Neto said in an interview.
Embraer is a leader in regional aviation and follows Airbus and Boeing in the market for larger commercial jets. The company hopes to finalize its Indian partner for defence aircraft manufacturing by the end of 2023. (Read More)
Centre’s offer for sale (OFS) of shares in Coal India received a robust response from non-retail or institutional investors and the issue was subscribed 3.46 times on Thursday.
With the oversubscription of the shares, government has decided to offer another 1.5% share for sale on Thursday.
“Offer for sale in CIL received enthusiastic response from non-retail investors today. The issue was subscribed 3.46 times of the base size. Govt has decided to exercise the green shoe option. Retail investors get to bid tomorrow," said tweet from Tuhin Kanta Pandey, secretary, Department of Investment and Public Asset Management. (Read More)
FIIs started June month as net sellers. However, the selloff from FIIs was at a slower pace as the market's tone was broadly volatile. DIIs outperformed foreign investors with an inflow of nearly ₹489 crore on Thursday in Indian equities (Read More)
Aditya Birla Capital Ltd (ABCL), the holding company of the group’s financial services business, on Thursday said it plans to raise ₹1,250 crore through a preferential issue of shares to its promoter and promoter group companies.
The shares will be sold to promoter Grasim Industries Ltd and promoter group entity Surya Kiran Investments Pte Ltd, according to an exchange filing. The fundraising is part of the company’s plan to raise as much as ₹3,000 crore.
The funds raised, it said, will be used for augmenting capital, improving the solvency margin and leverage ratio, and meeting growth and funding requirements in one or more subsidiaries, associates or joint ventures engaged in certain businesses and technology, IT infrastructure and digital offering platforms. (Read More)
Adani Road Transport, a wholly-owned subsidiary of Adani Enterprises has decided to terminate the agreement to acquire Macquarie Asia Infrastructure Fund's (MAIF) toll road in Andhra Pradesh, Gujarat for ₹3,110 crore. In a filing with the exchanges, the company stated that it had opted to terminate the share purchase agreement because the seller had not met the conditions for closing within the time frame specified in the agreement.
Adani Enterprises arm Adani Road Transport Ltd was to acquire a 100% stake in Swarna Tollway Private Ltd (STPL) and 56.8% stake in Gujarat toll roads portfolio (GRICL), from Macquarie Asia Infrastructure Fund (MAIF) last year in August. The transaction is expected to close last year in September. (Read More)
The Delhi High Court has ordered low-fare airline SpiceJet to pay ₹380 crore to its former promoter, Kalanithi Maran of the Sun Group, and asked it to submit an affidavit of assets within four weeks.
The ruling is a setback to the airline, which surprised with a four-fold increase in earnings to ₹106.8 crore in the December quarter, and comes amid a battle with aircraft lessors over payments. Mint has reviewed a copy of the order.
The High Court ruling on May 29, 2023 originates from a long-running battle between the Maran family and the current promoter, Ajay Singh, and SpiceJet, over contractual obligations. Maran sued SpiceJet in 2017 for allegedly causing losses by failing to issue convertible warrants and preference shares to him and his KAL Airways. (Read More)
Vaishali Parekh has recommended three day trading stocks for today, here we list out full details in regard to those intraday stocks:
1] M&M Finance: Buy at ₹294, target ₹307, stop loss ₹289;
2] Graphite India: Buy at ₹335, target ₹347, stop loss ₹330; and
3] Mahindra CIE: Buy at ₹461, target ₹482, stop loss ₹452. (Read More)
The gross Good & Services Tax (GST) revenue collected in the month of May, 2023 is ₹1,57,090 crore of which CGST is ₹28,411 crore, SGST is ₹35,828 crore, IGST is ₹81,363 crore (including ₹41,772 crore collected on import of goods) and cess is ₹11,489 crore (including ₹1,057 crore collected on import of goods).
The government has settled ₹35,369 crore to CGST and ₹29,769 crore to SGST from IGST. The total revenue of Centre and the States in the month of May 2023 after regular settlement is ₹63,780 crore for CGST and ₹65,597 crore for the SGST.
The revenues for the month of May 2023 are 12% higher than the GST revenues in the same month last year. During the month, revenue from import of goods was 12% higher and the revenues from domestic transactions (including import of services) are 11% higher than the revenues from these sources during the same month last year. (Read More)
Wall Street rose Thursday with hopes that the Federal Reserve may soon take it easier on its hikes to interest rates.
The S&P 500 rallied 1% after a suite of reports painted a picture of a split U.S. economy. The job market remains solid, but manufacturing is weakening and retailers are seeing shoppers under pressure. Altogether, investors saw the data pushing the Fed toward not hiking rates at its meeting in two weeks, which would be the first time that's happened in more than a year.
The Nasdaq composite led the market with a 1.3% jump. It's full of technology companies and other high-growth stocks that tend to benefit most from lower rates. The Dow Jones Industrial Average gained 153 points, or 0.5%.
One positive for the market came late Wednesday when the House of Representatives approved a deal to prevent a possibly catastrophic default on the U.S. government’s debt. But that was what Wall Street expected, and only a slip-up for the deal before it gets signed by President Joe Biden would likely cause big waves for stocks.
Investors are more concerned about whether the economy will fall into a recession before inflation recedes enough to convince the Federal Reserve to take it easier on interest rates.
Reports on Thursday gave a clouded view. One said that fewer workers applied for unemployment benefits last week than expected, while another suggested employers increased their payrolls last month by more than forecast. (AP)
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