Sensex tops 63000, Nifty ends 100 pts higher; Asian Paints, ITC, Titan gain

Indian shares advanced 0.6% on Tuesday with the broader midcap index hitting a fresh record on improved sentiment after data showed domestic retail inflation cooled in May.

The blue-chip Nifty 50 index was up 115 to close above 18,700, at 18,716, while the benchmark S&P BSE Sensex rose 418 points to end above 63,000, at 63,143. Fourteen of the 15 Nifty broad sectoral indexes logged gains in today's session.

With all indices ending in the green, FMCG, Media, Realty, Pharma and Consumer Durables gained more than a per cent. Metal and IT also registered reasonable gains. Auto remained flat in today's session and ended with minor losses.

The rally was led by Asian Paints, Titan ITC, Tata Steel and Reliance all of which registered more than a 1% jump. Kotak Bank shed more than a per cent and M&M and SBI dropped more than 0.5% each. MRF shares surpassed the 100,000 price in today's trading.

Asian stock markets were mostly higher Tuesday ahead of a U.S. inflation update and a Federal Reserve decision on another possible interest rate hike.

Tokyo shares ended higher Tuesday after Wall Street stocks advanced ahead of key economic data and central bank decisions. The benchmark Nikkei 225 index climbed 1.80%, while the broader Topix index added 1.16%.

China stocks closed up after the central bank lowered a short-term policy lending rate in an effort to restore market confidence, although economic worries and geopolitical risks limited gains.

China's blue-chip CSI300 Index added 0.5% at close, while the Shanghai Composite Index edged up 0.2%. In Hong Kong, the benchmark Hang Seng Index rose 0.6% and the China Enterprises Index climbed 0.5%.

European shares opened higher on Tuesday led by the gains in technology stocks, amid growing optimism that the U.S. Federal Reserve would skip raising interest rates in its policy meeting.

UK's main indexes edged up on Tuesday on a boost from mining stocks, with investors assessing an update on the domestic labour market ahead of key U.S. inflation data.

On Tuesday, Shriram Farm Solutions, a subsidiary of DCM Shriram Ltd, revealed that it has entered into a partnership with Nano-Yield, a US-based company, to utilize Nano-Yield's nano liquid technology in India.

According to the agreement, 'Shriram' will gain access to Nano-Yield's nano liquid technology through a technology transfer, supply, and purchase arrangement. This will enable Shriram to offer Nano-Yield's innovative nano liquid technology to its customer base in India.

"Our collaboration gives us the opportunity to bring the critical nano-technology to a vast array of agri-inputs, eventually helping in broad-basing nano-tech products for Indian farmers," Shriram Farm Solutions Executive Director and Business Head Sanjay Chhabra said in a statement.

Raghvendra Nath, MD, Ladderup Wealth Management Pvt. Ltd: India's consumer price index (CPI) has experienced a significant easing, reaching a 25-month low of 4.25% in May. This improvement can be attributed to the relatively slower increase in food prices and a favourable base effect. Notably, the CPI has remained below the Reserve Bank of India's upper tolerance limit of 6% for three consecutive months. Comparatively, the current CPI is lower than the recorded 4.7% in April 2023 and significantly lower than the 7.04% reported in May 2022. Additionally, the consumer food price index also saw a decline, falling from 3.84% in April to 2.91% in May. It appears that the Reserve Bank of India's decision to refrain from further rate hikes has proven beneficial, as the monthly inflation figures continue to decrease. Moreover, the latest inflation number aligns with the revised projection by the RBI, which now estimates inflation for Q1 2024 at 4.6%, down from the earlier projection of 5.1%.

Engineering and construction behemoth Larsen & Toubro (L&T) on Tuesday said its hydrocarbon business L&T Energy Hydrocarbon (LTEH) has secured “significant" orders.

L&T classifies orders in the range of ₹1,000 crore to ₹2,500 crore as significant.

The contracts involve engineering, procurement, construction & installation for new offshore structures. (Read More)

Reliance Industries Limited, the largest Indian corporation in terms of revenue, profits, and market value, has once again emerged as the leader among Indian companies in the 2023 edition of 'The Global 2000' published by Forbes.

In the overall ranking of 2000 global corporations, Reliance Industries secured the 45th position, surpassing renowned names such as BMW Group from Germany, Nestle from Switzerland, Alibaba Group from China, Procter and Gamble from the United States, and Sony from Japan.

Notably, Reliance Industries has made significant progress in its ranking in this prestigious global corporate listing, moving up from 53rd place in 2022 to the 45th position in 2023.

Following Reliance Industries, other prominent Indian companies featured in the 2023 rankings include State Bank of India at 77th place, HDFC Bank at 128th place, and ICICI Bank at 163rd place.

According to sources familiar with the matter, Subhash Chandra and Punit Goenka, the promoters of Zee Group, have filed a petition with the Securities Appellate Tribunal (SAT) on Tuesday. They are challenging the order issued by the Indian markets regulator, which prohibits them from holding board positions in listed companies.

The sources further revealed that the bench has scheduled the case for further hearing on Thursday.

On Monday, the Securities and Exchange Board of India (SEBI) banned Chandra and Goenka for a period of one year. SEBI stated that they were actively involved in diverting company funds to related entities within the group.

Inox Wind board members have given their approval for the merger of Inox Wind Energy into the company. The scheduled date for the amalgamation has been set as July 1, 2023. Under the proposed merger plan, Inox Wind will issue 158 equity shares to the shareholders of Inox Wind Energy for every 10 equity shares they hold. Additionally, Inox Wind will also grant 158 share warrants, priced at ₹54 each, to the shareholders of Inox Wind Energy for every 10 share warrants they currently possess, which were issued at an issue price of ₹847 each.

The British pound demonstrated strength on Tuesday as recent data revealed significant wage growth in the UK labor market, accompanied by an unexpected decline in unemployment. These positive indicators have fueled expectations that the Bank of England will continue to raise interest rates throughout the year.

The Office of National Statistics (ONS) reported robust salary growth for the three months leading up to April, with wages, excluding bonuses, showing a remarkable increase of 7.2% compared to the previous year, further boosted by a rise in the minimum wage.

As a result, the pound initially experienced an increase of up to 0.52% before retracting to $1.257, resulting in a 0.47% gain for the day. Against the euro, sterling remained relatively stable at 85.98 pence.

India’s ad revenue is expected to grow by a subdued 12% to $17.3 billion in 2023, according to a report by advertising agency GroupM. However, the agency estimated this figure to rise to 13.6% next year.

The report titled ‘This Year Next Year 2023 Global Mid-Year’, said the macroeconomic environment has prompted some markets to trim expectations for 2023 compared with the December 2022 forecast. This list includes India, which is expected to see a 12% growth against the initial projection of 16.8%. (Read More)

HFCL Limited, an enterprise offering communication network solutions for telcos, railways, and defence sectors, announced its new order win worth ~ ₹80.92 crores from Delhi Metro Rail Corporation (DMRC) Limited. As part of this project, HFCL will be setting up Fibre Optics Transmission System (FOTS) for Delhi Metro Rail Project of Delhi Metro Rail Corporation (DMRC) Limited, said the statement.

The company added that the timeline to execute this order is 156 weeks from the date of notice to proceed (NTP). Thereafter, HFCL has to provide warranty support for 104 weeks. The company will be involved in the design, manufacture, supply, installation, testing and commissioning of Fibre Optics Transmission System (FOTS) for three priority Corridors of Phase-IV of Delhi Metro Rail Project.

Mahin Gupta, Founder of Liminal, a wallet infrastructure & custody solutions platform, comments on SEC action on crypto firms: The recent lawsuits filed by the SEC against Binance and Coinbase indicate a significant shift in regulatory approach towards the digital asset industry. Previously, the SEC had faced criticism for its perceived slow response in regulating the industry, which allowed certain malicious actors to operate without proper oversight, as exemplified by the FTX incident.

This marks the beginning of a series of actions aimed at establishing tighter control over the industry. While these measures may ultimately contribute to legitimizing the web3 industry in the long run, it is important to acknowledge that such strong actions could potentially stifle innovation. Therefore, web3 firms need to proactively prepare themselves for heightened regulatory scrutiny.

Web3 enterprises must prioritize compliance with all relevant laws and regulations. Additionally, they should establish robust internal controls to safeguard investor interests. Transparency regarding their operations is crucial, as is constructive engagement with regulators. By fostering collaboration between the digital asset industry and regulators, a balance can be struck between promoting innovation and ensuring investor protection. This collaborative approach will ultimately foster the long-term growth and success of the web3 industry.

Vikas Ecotech Ltd., a small-cap company, has attracted investment from AG Dynamic Funds Limited, a foreign institutional investor based in Mauritius. This stake acquisition aligns with Vikas Ecotech's ongoing capital raising efforts, wherein the company has issued new shares to AG Dynamic Funds Limited, as well as two other foreign institutional investors. The two additional FIIs involved in this investment are Vikasa Global Fund PCC- Eubilia Capital Partners Fund I and Calypso Global Investment Fund. (Read More)

The Society of Indian Automobile Manufacturers (SIAM) has published its latest report on the performance of the Indian auto industry for May 2023. Based on the data, the total production of passenger vehicles, three-wheelers, two-wheelers, and quadricycles reached 21,24,235 units during the mentioned month.

According to SIAM's findings, the sales of passenger vehicles in the country amounted to 3,34,247 units in May, showing a growth rate of 13.5% compared to May 2022. Similarly, the sales of three-wheelers recorded a significant increase of 70.4% year-on-year, with a total of 48,732 units sold in May 2023.

In the two-wheeler segment, sales reached 14,71,550 units in May 2023, reflecting a growth rate of 17.4% compared to the same month last year.

JPMorgan has commenced coverage on Mankind Pharma, assigning it an "Overweight" rating and a target price of ₹1,700 per share. This target price suggests a potential increase of more than 10% compared to today's high price.

According to the brokerage firm, Mankind Pharma is recognized as one of the rapidly expanding pharmaceutical companies in the domestic market, and it holds a prominent position in terms of value. (Read More)

According to a report by Reuters citing CNBC Awaaz, it is anticipated that Rakesh Gangwal, co-founder of IndiGo, along with his family, may sell a stake ranging from 5% to 8% in InterGlobe Aviation. This stake is estimated to be worth up to 75 billion rupees ($909.58 million). The report further mentioned that the Gangwal family is likely to sell their stakes through block deals once the lock-in period for shares expires on July 15. (Read More)

Praveen Sahay - Research Analyst, Prabhudas Lilladher Pvt Ltd: Room Air Conditioner (RAC) Channel Check update (June-2023)

We connected with 13 dealers of RAC across India to gauge the summer season’s demand/pricing scenario. As per our interaction, demand for Room Air Conditioners were moderate and North India stands most affected due to unseasonal rains. Below key takeaways:-

Competitive Price to continue

Due to intense competition, brands have not yet taken any price hike.

Soft Demand in summer season

Volumes picked up by April end, however May-June were again impacted due to unseasonal rains (mostly in North India). West India saw pick up in May-23 with severe summer, while dealers were still at lower sales volume compared to previous year’s summer season. Demand may further stand impacted with the upcoming rainy season.

RAC Inventory at normal level

Our channel checks suggest that inventory is at normal level, an average of around 45 days at dealer’s level.

Other highlights

The most selling product in RAC segment is 1.5 ton 3-star AC’s of Voltas and Daikin. In the high end range, Mitsubishi and O-General AC’s are preferred.