Auto, IT ensure Sensex, Nifty end in green; Tata Motors, HCL Tech shine

Indian stock indices traded lower for most of the session but a late rally helped Sensex and Nifty gain 0.25% and 0.33%, respectively. The drag in the first half was mostly due to profit-booking investors after gains.

Sensex added 160 points to close at 63,327, while Nifty gained 60 points to end at 18,816. Twelve of the 15 broad sectoral indices of Nifty ended in the green in today's session.

However, strong fundamentals including a firm GDP outlook, moderate inflation and strong purchases by foreign investors are positive for markets. The stock indices are near their all-time highs.

Tata Motors, HCL Tech, HDFC Life and Powergrid gained more than 2% and topped the stock charts, while Bajaj Finance and Bajaj Finserv shed more than a per cent each and were the biggest laggards.

Most sectors ended in the green with Finance, Auto and IT gaining the most. Media continued to slide as it shed more than a per cent. Pharma also ended in the red

Asian shares mostly declined on Tuesday as some investors took a wait-and-see attitude after US markets were closed for a national holiday.

Tokyo's benchmark Nikkei index trimmed earlier losses and ended slightly higher despite Beijing's central bank cut two benchmark interest rates. The Nikkei 225 index inched up 0.06%, while the broader Topix index slipped 0.29%.

China and Hong Kong stocks fell on Tuesday, dragged by property and tech shares after the country cut benchmark lending rates less than expected, and Antony Blinken's Beijing visit signalled little improvement in Sino-U.S. ties.

The Shanghai Composite Index slipped 0.5%, while the blue-chip CSI300 Index dipped 0.2%. Hong Kong benchmark Hang Seng lost 1.5% in its worst day in nearly three weeks.

China cut its key lending benchmarks on Tuesday to shore up a slowing economic recovery, but the easing was below market expectations.

Europe's stock markets slid in opening deals on Tuesday, after losses across most of Asia, as investors awaited Wall Street's reopening from a long holiday weekend.

UK's benchmark stock index slipped at open, weighed down by miners, while investors keenly awaited a key economic data and the Bank of England's rate decision later in the week.

There are indications that food price inflation in the UK may have reached its peak, as suggested by two separate surveys showing improvements in the market.

According to market research firm Kantar, the rate of grocery price increases slowed to 16.5% in the four weeks leading up to June 11. This is a decrease from 17.2% recorded in the previous month, marking the lowest reading for this year. Additionally, Lloyds Bank Plc reported that production costs for UK food and drink manufacturers declined last month for the first time since 2016.

These figures suggest the possibility that upward pressure on prices is beginning to alleviate. Bank of England Governor Andrew Bailey has previously cautioned that inflation is taking longer than expected to subside, following its strongest levels in four decades last year.

Despite a generally negative market sentiment on Dalal Street today, stocks of air conditioner (AC) manufacturers have experienced significant upward movement in Tuesday's trading. Among major AC makers, Amber Enterprises shares surged by approximately 10%, Blue Star share price rose by around 4%, and Johnson Hitachi share price increased by approximately 4%. Additionally, Subros shares, which have an integrated AC manufacturing system, appreciated by 20% and hit the upper circuit. However, Voltas share price faced selling pressure during Tuesday's trading and the stock was trading in the red zone around 2:30 PM.

Speaking on the reason for dip in AC maker stocks, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "AC maker stocks are rising today as Transport Minister Nitin Gadkari announced yesterday that in India, all trucks will need to have air-conditioned driver compartments beginning 2025. This has triggered short term positive sentiments in regard to these AC maker stocks as auto companies won't be able to develop ACs for the drivers' cabin. In that case, market is expecting that the ACs for the trucks would be outsourced to these leading AC maker companies that is going to create an additional business avenue for these white goods companies." (Read More)

Binance, the largest cryptocurrency exchange globally, along with Binance.US, has reached an agreement with the U.S. Securities and Exchange Commission (SEC) to safeguard the assets of U.S. customers within the United States. This measure aims to ensure that the assets remain in the country until the resolution of a comprehensive lawsuit filed by the SEC earlier this month.

The details of the agreement were disclosed in court documents filed on Friday. However, the approval of the federal judge overseeing the litigation is still required for the agreement to be finalized. As part of the agreement, access to these assets will be limited to employees of Binance.US, thereby preventing the assets from being transferred offshore.

PL Technical Research: Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher Pvt. Ltd

STOCK RADAR:- TATA MOTORS cmp: 582 has given a fresh pennant breakout above the 580 zone with decent volume participation and has further near term target of 610 and thereafter 660 levels in the coming days. The support would be strong near 558 zone below which our view would be negated.

Bank of Baroda's share price maintained its upward trajectory on Tuesday, registering a gain of over 1% as global brokerage firm JPMorgan maintained an 'Overweight' rating on the stock and projected a potential upside of around 17%.

During the trading session, the stock reached a high of ₹196.75 per share on the Bombay Stock Exchange (BSE), slightly below its 52-week high of ₹197.20 recorded on December 9, 2022.

Notably, Bank of Baroda achieved a market capitalization of over ₹1 lakh crore, making it the second public sector bank after State Bank of India (SBI) to achieve this milestone. (Read More)

Prathamesh Mallya, DVP Research, Non-Agro Commodities & Currency, Angel One Ltd shares:

GOLD Outlook: We expect gold to trade lower towards 58910 levels, a break of which could prompt the price to move higher to 58800 levels.

CRUDE Outlook: We expect crude to trade higher towards 5990 levels, a break of which could prompt the price to move higher to 6090 levels.

BASE METALS Outlook: We expect copper to trade lower towards 725 levels, a break of which could prompt the price to move higher to 721 levels.

India's delayed monsoon is expected to gather strength in the coming three to four days and is likely to encompass significant agricultural regions in the southern, central, and western states, including key crops like rice, soybeans, cotton, and sugar cane, according to weather officials on Tuesday.

The monsoon plays a crucial role in India's $3 trillion economy as it provides around 70% of the necessary rainfall for irrigating farmlands and replenishing reservoirs and groundwater sources. Additionally, it brings respite from the scorching summer temperatures.

Typically, the monsoon first arrives in Kerala state, located on India's southwest coast, around June 1, and gradually covers approximately half of the country by mid-June.

Vikas Ecotech share price today inched higher at open and went on to hit an intraday high of ₹3.55 levels.

Vikas Ecotech Ltd informed Indian stock market exchanges about the business update citing, “Vikas Ecotech Limited is pleased to share business updates from the Specialty Polymer Compounds Division: The Company has bagged fresh orders for Specialty Compounds valued at an Approx INR 90 Million ( ₹9 crore). The Speciality Compounds sales registered so far during Q1 of the current fiscal is INR 197 Million ( ₹19.70 crore) and the target for the current quarter is INR 285 Million wiz about 9% higher while compared on Q’o’Q Basis with the last FY." (Read More)

Credit Wise Capital (CWC), an NBFC specializing in two-wheeler financing, and Muthoot Capital have announced a co-lending partnership. The press release state that the partnership aims to provide seamless financing solutions to customers purchasing two-wheelers across India in a digital manner through Twin2 - a proprietary product of CWC that ensures a hassle-free experience for the customers.

Infra.Market, a business-to-business construction material startup, is set to secure $150 million in funding from Varde Partners. The capital will be raised through the issuance of convertible instruments and forms part of the company's strategy to raise funds in preparation for its upcoming initial public offering (IPO), according to two sources familiar with the matter.

Infra.Market already boasts prominent investors such as Accel Partners, Evolvence India, Sistema Asia Fund, Foundamental Gmbh, and Nexus Venture Partners. In June 2022, the company successfully raised $50 million in growth capital from Liquidity Group's MARS Unicorn Fund, resulting in a valuation of $2.5 billion. (Read More)

Oil prices experienced a slight decline, prompted by concerns that the economic stimulus measures introduced to revive China's slowing economic growth may not meet expectations.

The price of West Texas Intermediate (WTI) for August delivery decreased from the previous trading session, hovering around $71 per barrel. There was no settlement on Monday in the United States due to a holiday. Additionally, the global benchmark Brent also dipped further after a 0.7% decline during the opening session of the week.

Worldline, a payment service provider, announced its partnership with payment aggregator, Mswipe Technologies, to offer Equated Monthly Instalments (EMI) as a value-added service that enables businesses to provide No-Cost EMI financing from several leading brands on Worldline Android Smart POS devices across the country.

The press release said that the partnership will enable Worldline and Mswipe to help their partners avail mid- and high-value purchases at retail outlets powered by Worldline Android Smart POS machines.

Foreign portfolio investors and alternative investment funds have subscribed to the anchor book of HMA Agro Industries Ltd's initial public offering (IPO). The company successfully raised ₹144 crore by allocating 24,61,537 shares to anchor investors.

Several investors, such as Craft Emerging Market Fund PCC, Minerva Ventures Fund, Forbes EMF, Coeus Capital Opportunities Fund, Radiant Global Fund, and Absolute Returns Scheme, participated in the anchor book.

Among these investors, Craft Emerging Market Fund PCC emerged as the largest contributor, investing ₹70 crore through Citadel Capital Fund and Elite Capital Fund in HMA Agro. (Read More)

In May of this year, public sector steel companies in India disbursed a total of over ₹692.36 crore to micro, small, and medium enterprises (MSMEs). This amount represents a 35.6% increase compared to the payments made in the same month last year.

According to an official statement, the combined payments made by steel Central Public Sector Enterprises (CPSEs) to MSMEs during April and May 2023 amounted to ₹1,321.32 crore. This figure is 23.8% higher than the ₹1,067.53 crore disbursed during the corresponding period in the previous fiscal year (2022-23).

Following the issuance of a Commencement Certificate by the Thane Municipal Corporation for a residential project development, the share price of Bharat Agri Fert & Realty surged by approximately 13%. The company's shares commenced trading on Tuesday's session at ₹122.95 per share on the Bombay Stock Exchange (BSE).

The approved project is anticipated to generate an estimated additional net income of around ₹700-800 crore for Bharat Agri Fert & Realty. (Read More)

Gaurav Bissa, VP, InCred Equities on InterGlobe Aviation: Indigo witnessed a symmetrical triangle pattern breakout on the weekly charts at 2150 levels which catapulted the stock towards 2400 levels. After making fresh lifetime high levels the stock triggered a bearish harmonic alt shark pattern on the weekly charts which is a reversal pattern in nature. The pattern suggests a fall to 2150 levels once the stock closes below 2350 levels. So far, the stock is trading above its major swing high levels which is keeping the buying interest intact in the stock with multiyear ascending trendline resistance at 2550 levels. At current prices, the risk-reward is not suitable for fresh buying and existing shareholders should book partial profit on account of bearish harmonic pattern.

In morning trade on Tuesday, Timken India's share price experienced a significant decline of 11% following a bulk deal in which its parent company, Timken Singapore Pte Ltd, sold a stake in the Indian subsidiary. The stock opened at ₹3,198, lower than its previous closing price of ₹3,485.50, and quickly dropped by 11% to reach an intraday low of ₹3,100.30.

As of around 10:10 am, the stock had decreased by 7.50% and was trading at ₹3,224. Data from the Bombay Stock Exchange (BSE) indicated that approximately 88.7 lakh shares of the company were traded on the BSE. (Read More)

Abhishek Kumar of M Financial Institutional Securities says on Coforge: On to the next billion - Company Update BUY INR 4,620: Coforge, in its Analyst Day, laid out a credible blueprint to double its revenues (from USD 1bn to USD 2bn) within the next five years. Credible, in our view, because it is predicated on a) a successful playbook of past five years – focussed (sub) verticals, partnerships and geographies; b) a realistic growth target – implied CAGR of c.15% versus past 5 year CAGR of 17% (USD terms); and c) existing building blocks – sales, delivery engine in place. The company expects incremental revenues to come from a) scaling existing accounts – USD 450mn; b) three new verticals – USD 150mn; c) partnerships (ServiceNow, AWS, MS) – USD 150mn; and d) tuck-in acquisitions – USD 150mn. In the near term though, the company did flag off a challenging spending environment, especially among BFS clients. However, a strong 12-M executable order book (EOB) lends visibility as the company does not expect any leakage here. With 75-77% of FY24 revenues (12-M EOB as % of FY24 guidance range) in the bag, Coforge’s FY24 revenue visibility is probably the highest among Indian IT Services players at this stage. This forms a key rationale of our constructive stance on the name. At 20x FY25E PER, we find valuations reasonable as well. Retain BUY.

Wipro, a leading IT company, has scheduled its share buyback program worth ₹12,000 crore to commence on June 22 and conclude on June 29.

After a gap of over two years, Wipro's board of directors announced the initiation of their first share buyback on April 27.

The company has established a floor price of ₹445 per equity share for the buyback. The record date for determining the eligibility and entitlement of participating equity shareholders was set as June 16, 2023. (Read More)

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:  Market has corrected from near record highs and has turned volatile. A healthy feature of the ongoing 3-month-old rally is that it has been characterised by corrections which made ‘buy on dips’ strategy successful.

Much of the ongoing volatility in the market is due to sectoral churning happening on a large scale. This has turned Bank Nifty weak and Nifty Auto and Nifty Realty strong. It is important to understand this sectoral churn and diverse sectoral trends. While Nifty is up by 3% YTD, Nifty Bank is up by only 1%. In sharp contrast to this trend, Nifty Auto is up by 15.86% and Nifty Realty is up by 17% YTD. Banking stocks are witnessing profit booking in spite of the sound fundamentals and part of this money is moving to autos and realty reflecting their improving prospects.

In early trading on Tuesday, the shares of HDFC Asset Management Company (HDFC AMC) experienced a remarkable surge of 9%. Simultaneously, Abrdn Investment Management Limited completely divested its stake of 10.2% in the company through exchange transactions. The stock commenced trading at ₹2,034.95, surpassing the previous closing price of ₹1,891.10, and quickly soared by 8.93% to reach ₹2,060. However, the stock later relinquished some of its gains and traded at ₹2,026, reflecting a 7.13% increase around 9:30 am. (Read More)

During early trading on Tuesday, the share price of IIFL Securities experienced a significant decline of over 18%. This downturn came as a result of the Securities and Exchange Board of India (SEBI), the capital market regulator, imposing a two-year ban on the company from accepting new clients. The stock price plummeted by as much as 18.48% to reach an intraday low of ₹58.00 per share on the Bombay Stock Exchange (BSE).

SEBI's directive prevents IIFL Securities from engaging or onboarding any new clients as a stockbroker for the duration of two years.

However, IIFL Securities clarified that the SEBI order does not impact the company's existing business and its relationships with current clients will remain unaffected. (Read More)

On Tuesday, the share price of Interglobe Aviation witnessed a rise of nearly 1% following the announcement that the largest airline in the country had secured a substantial order of 500 aircraft, valued at approximately $50 billion, from Airbus SE at the Paris Air Show on Monday. Consequently, Indigo's shares closed slightly higher by 0.11% at ₹2,432.70 per share on the Bombay Stock Exchange (BSE) on Monday.

This order will provide the low-cost carrier with a consistent supply of aircraft from the A320NEO family, supporting its expansion plans for the next decade.

With a dominant domestic market share of over 60%, the airline already has around 500 aircraft lined up for future deliveries.

Shares of Bank of India, Ceat, Cera Sanitaryware, among others, will be under investors’ radar on Tuesday as they will trade ex-dividend today.

Here is a list of stocks that will trade ex-dividend today:

Bank of India: The state-run lender has declared a dividend of ₹2 per equity share. The record date is also today.

Ceat: The board of tyre manufacturer had announced a final dividend of ₹12 per equity share. The record date for the dividend is also June 20.

Cera Sanitaryware: The company had announced a dividend of ₹50 per share. (Read More)

InterGlobe Aviation makes history with record order of 500 aircraft from Airbus. BPEA EQT group receives approval to acquire around 90% stake in HDFC's wholly-owned education financial subsidiary HDFC Credila Financial Services. Sebi bars IIFL Securities from onboarding new clients for two years. Abrdn Investment Management to sell entire 10.2% holding in HDFC Asset Management Company. Adani Transmission to raise ?8,500 crore through issuance of equity shares. Shriram Finance witnesses huge block deal as TPG India Investments offloads entire stake. Tata Power plans to participate in privatisation opportunities. Vedanta plans to invest USD 1.7 billion in current financial year to expand capacities. Max Life Insurance picks a 2.99% stake in Capital Small Finance Bank. Can Fin Homes to raise up to ₹4,000 crore from debt instruments and another ₹1,000 crore from institutional placement and rights issues. (Read More)

Max Life Insurance Company Ltd, a subsidiary of Max Financial Services, has picked a 2.99% stake in Capital Small Finance Bank for ₹49.5 crore.

“This investment marks a significant milestone for Capital Small Finance Bank and reinforces our commitment to delivering exceptional value to our customers. It is a testament to the strength of our bank and the trust that Max Life Insurance Company Limited has placed in us," Sarvjit Singh Samra, managing director and chief executive officer, Capital Small Finance Bank, was quoted as saying in a release.

French defence group Thales is in preliminary discussions with Adani Group and Reliance Industries Ltd to collaborate on an unmanned air traffic management system for drones, Mint has learnt.

“Thales is looking at the Indian market for drones. Some initial discussions have taken place with Indian companies, including Reliance and Adanis," a person aware of the development said.

Under the current drone framework, the civil aviation ministry and the Directorate General of Civil Aviation are working to create a roadmap for the unmanned air traffic management system which can control the movement of drones. (Read More)

Vaishali Parekh of Prabhudas Lilladher has recommended three intraday stocks for today, here we list out full details in regard to those day trading stocks:

1] Cochin Shipyard: Buy at ₹592, target ₹620, stop loss ₹581;

2] REC: Buy at ₹153.50, target ₹158, stop loss ₹151; and

3] Bank of Baroda: Buy at ₹193.50, target ₹201, stop loss ₹191. (Read More)

On Monday, Shriram Finance, a prominent Non-Banking Financial Company (NBFC), experienced a significant block deal in which TPG India Investments sold its entire stake of 2.65% in the company, totalling approximately ₹1,390 crore. Despite this, Shriram Finance's share price surged by nearly 5% due to the presence of multiple major buyers, including Morgan Stanley, Goldman Sachs, and various fund houses. The largest buyer in the transaction was the Kotak Funds India Midcap Fund.

According to block deal data on the Bombay Stock Exchange (BSE), TPG India Investments II Inc offloaded 99,18,348 equity shares, representing a 2.65% stake in Shriram Finance, at a share price of ₹1,401 per share. The total value of the transaction amounted to at least ₹1,389.56 crore. The selling of shares was executed in multiple tranches throughout the day. (Read More)

Housing Development Finance Corp. (HDFC) on Monday informed that it will sell a 90% stake in education loan subsidiary HDFC Credila Financial Services to Baring Private Equity Asia (BPEA) EQT group and the ChrysCapital group for ₹9,060.5 crore.

The mortgage lender said the proposed transaction will close within 15 business days from the completion of all conditions precedent, including receipt of regulatory approvals or a date mutually agreed between the parties. The deal would require approvals from the Reserve Bank of India (RBI) and the Competition Commission of India, it said, adding that the long stop date for this transaction is 31 March 2024. (Read More)

On Monday, the Securities and Exchange Board of India (SEBI), the market regulator, imposed a two-year ban on IIFL Securities from accepting new clients.

SEBI has prohibited IIFL Securities Limited, a stockbroker, from onboarding any new clients for a duration of two years.

This decision follows multiple inspections conducted by SEBI on IIFL's financial records from April 2011 to January 2017. (Read More)

IndiGo airline announced on Monday that it has made a record order for 500 Airbus A320 aircraft. The massive expansion by India's largest airline comes as the aviation industry is witnessing more competition after the entry TATA Group. IndiGo is maintaining its hold over the Indian aviation market for a while now with a 57.5% domestic market share as of April 2023.

In a statement, IndiGo airline termed the order as the largest-ever single aircraft purchase by any airline with Airbus and informed that the deliveries of the aircraft are expected between 2030 to 2035. (Read More)

On Monday, both Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) played a role in preventing the Sensex and Nifty 50 from reaching their record highs by being net sellers. FIIs sold Indian stocks amounting to approximately ₹1,031 crore, while DIIs sold at a slower pace, totaling just over ₹365 crore. The cautionary factors that affected investor sentiment included intermediate volatility and significant profit booking in prominent banking companies.

According to data from the National Stock Exchange (NSE), FIIs purchased Indian stocks worth ₹8,354.90 crore on June 19th, but their sales amounted to ₹9,385.80 crore. Consequently, they experienced a net outflow of ₹1,030.90 crore.

In contrast, DIIs bought equities valued at ₹6,412.20 crore and sold stocks worth ₹6,777.40 crore, resulting in a net outflow of ₹365.20 crore. (Read More)

Global shares fell from 14-month highs hit last week, as investors awaited testimony from U.S. Federal Reserve Chair Jerome Powell in markets that remain dominated by monetary policy bets.

The MSCI's broad gauge of world stocks softened by 0.3%, with Wall Street markets closed for the Juneteenth holiday.

In Europe, the Stoxx 600 share index lost 0.7%. Short-term UK government bonds continued selling off ahead of the Bank of England's monetary policy decision on Thursday, at which it is widely expected to lift interest rates for the 13th consecutive meeting.

After a week in which the stock market cheered the Fed's decision to skip a rate increase in June, Powell is scheduled to deliver congressional testimony on Wednesday and Thursday.

Hopes that the Fed will end its most aggressive rate increase campaign in decades are boosting global stock indices dominated by the U.S. tech megacaps that tend to outperform when risk appetite is buoyed by easier monetary policy. (Reuters)