PremiumIT stocks experienced profit booking after reports show that the US jobs market remains tight and inflation remains elevated portraying a bleak outlook for the sector. RBI and Fed policy meeting outcomes are scheduled to be released this week, and the anticipation around it will be the key driver of the market. RBI is expected to keep the repo rate unchanged.
Indian shares ended flat on Tuesday as a slide in information technology stocks overshadowed the gains in auto and realty amid hopes of a rate hike pause by the U.S. Federal Reserve and Reserve Bank of India heading into their policy meetings.
The blue-chip Nifty 50 index ended 5 points higher to close at 18,599, while the benchmark S&P BSE Sensex also added 5 points to close at 62,792. Nine of the 15 Nity sectoral indices advanced. The auto index hit a new record for the third session in a row following robust May sales data.
The drag in the IT index was contributed by Tech Mahindra, Infosys, TCS, HCL Tech and Wipro who were among the biggest laggards in stock charts. Ultratech Cement jumped 3.1 % and Divi's Lab just below 3% and were the top gainers.
Among sectoral indices, IT shed 1.8%. Consumer Durable and PSU Bank also shed marginally in today's session. Auto and Realty climbed around a per each and were standout gainers on Tuesday.
Asian stock markets were mixed Tuesday after Wall Street fell on concern the U.S. economy may be weakening following a report that showed growth in service industries slowing.
Japan's Nikkei index extended its climb to scale a near 33-year high on Tuesday, with trading houses and Uniqlo operator Fast Retailing leading the gains on technical support for heavyweight shares ahead of the fixing of special quotation prices.
The Nikkei recouped from early losses to close nearly 1% higher. The index ended at its highest level since July 1990. The broader Topix rose 0.74%.
China stocks ended lower on Tuesday, erasing earlier gains ahead of trade data, despite expectations of more policy easing to aid the sluggish economic recovery.
China's blue-chip CSI300 Index closed down 0.9% and the Shanghai Composite Index dropped 1.2%. Hong Kong's benchmark Hang Seng slipped 0.1%, while the Hang Seng China Enterprises Index added 0.2%.
European shares opened flat on Tuesday as worries of further interest rate hikes by major central banks in the face of slowing economic growth countered support from defensive healthcare stocks.
UK shares were subdued in early trade on Tuesday dragged down by energy stocks, while investors awaited crucial inflation data as they assessed the prospect of a global economic slowdown.
Listing of the initial public offerings (IPO) of Hemant Surgical Industries Ltd took place at a whopping premium of 90 per cent as Hemant Surgical share price opened on BSE SME exchange at ₹171 per share. The BSE SME stock went on to hit intraday high of ₹179.55 apiece, which was its close price on the listing date as well. If we compare the Hemant Surgical IPO listing price of ₹171 per share with the Hemant Surgical IPO price band of ₹85 to ₹90, per equity share, we can say that the public issue has delivered almost multibagger return to its lucky allottees as it touched its record high of ₹179.55 apiece, which is almost 100 per cent higher from its upper price band of ₹90 per share. (Read More)
Dr Alok Misra, CEO & Director of MFIN, on the launch of 'Antardrishti,' the Financial Inclusion Dashboard, by the Reserve Bank of India (RBI): This shows the thrust placed on financial inclusion by the RBI in which microfinance plays a significant role by providing doorstep financial services to 6.4 crore low-income women. We look forward to the stage when the dashboard will be public to provide more insights into spatial, economic activity, gender-wide exclusion and inclusion. This will help guide the sector in its efforts.
Kore Digital Subscription Status: The SME initial public offering (IPO) of Kore Digital Ltd was subscribed 3.80 times on Day 3, at 14:24 IST. The public issue that opened for subscription on Friday, June 2, will close on Wednesday, June 7.
On the third day of the subscription, the issue received overall positive response from non-institutional bidders (NII)subscribed to 5.02 times of the portion set aside, and retail investors subscribed to 2.45 times of the portion reserved.
The company has received bids for 38,00,800 shares against 10,00,000 shares on offer, according to data from the NSE at 14:24 IST. (Read More)
India's largest derivative bourse, the National Stock Exchange of India (NSE) on Tuesday announced a change in the Bank Nifty Futures and Options (F&O) expiry day to Friday from Thursday with effect from July 14.
The move is seen as to counter the competition from the BSE’s recently relaunched Sensex and Bankex derivative contracts that expire on Friday, which are gradually gaining momentum and attracting investors due to lower charges compared to NSE.
"The above shall be effective from trade date July 7, 2023 Friday and accordingly, all existing contracts with Thursday expiry will be revised to Friday on July 6, 2023 EOD. The first Friday expiry will be on July 14, 2023," NSE said in a circular. (Read More)
IKIO Lighting IPO Subscription Status: The initial public offering (IPO) of IKIO Lighting Ltd was subscribed 71% on Day 1 at 13:53 IST, according to BSE data. The public issue that has opened for subscription on Tuesday, June 6, will close on Thursday, June 8.
On Day 1 of the subscription, the issue saw positive response from Non Institutional Investors (NIIs) who subscribed to the issue 1.11 times. Retail investors subscribed to 93% of the portion reserved.
The company has received bids for 1,07,98,112 shares against 1,52,24,074 shares on offer, according to data from the BSE at 13:53 IST. (Read More)
Bitcoin prices steadied on Tuesday but remained near their lowest in more than two months after a steep dive overnight, as investors grappled with news the U.S. securities regulator sued crypto exchange Binance, dealing a severe blow to the industry.
Bitcoin, the world's largest cryptocurrency, was last at $25,736, down 0.01% on Tuesday, pinned near a more than two-month low. It had slumped more than 5% in the previous session, the largest daily decline since April 19.
The U.S. Securities and Exchange Commission on Monday sued Binance, the world's largest cryptocurrency exchange, and its CEO Changpeng Zhao, alleging that Zhao was secretly controlling Binance.US as part of a "web of deception" to evade U.S. laws, among other charges. (Reuters)
Small-cap company Anmol India Ltd, which has a market cap of around ₹275 crore, has declared the issuance of bonus shares in the ratio of 4:1. This means the small-cap company will award four bonus shares free of cost to its eligible shareholders for holding one share of the company. The small-cap company is yet to announce a record date for the issuance of bonus shares.
Anmol India went on to add that bonus shares so allotted shall rank pari passu in all respects with the fully paid-up equity shares of the Company as on the record date and the same shall be subject to the terms and conditions contained in Memorandum and Articles of Association of the Company. (Read More)
Shishir Baijal- Chairman and Managing Director, Knight Frank India: In its upcoming MPC meeting, we expect the RBI to keep the repo rate unchanged at 6.5%, continuing with a pause, as inflation, supported by the statistical base has moderated, and will likely remain so. This provides enough support for the RBI to keep its key policy rate unchanged.
Additionally, inflation in other components, such as core inflation, which accounts for price pressures in households’ products, has remained elevated albeit with a slight moderation in April 2023. High core inflation affects the discretionary spending of the households, which in turn leads to moderation in the overall consumption demand. This has already been witnessed in FY 2023 GDP growth. Although the overall economy grew by 7.2%, the share of private consumption to GDP moderated to 60.6% in FY 2023 from 61.1% in FY 2022.
Thus, the potential impact of the persistent price pressures on domestic consumption growth will likely keep the RBI cautious enough to continue with a repo rate hike.
In terms of liquidity, the increase in net absorption by the RBI from ₹603 bn in April 2023 to ₹1.75 trn in May 2023, indicates excess liquidity in the banking system. Thus, we expect the withdrawal of accommodation through a moderate, i.e. 25bps hike in the Standing deposit facility (SDF).
In terms of real estate, the implication of the rate hike on home loan demand has been minimal so far. Residential demand has remained upbeat indicating at strong consumer preference towards home ownership despite high-interest rate and inflation over the last year. However, with economic growth facing headwinds from the global slowdown, and the full impact of the high-interest rates yet to be seen, we remain cautious of the impact on the housing market.
Home appliances maker BSH Home Appliances Pvt. Ltd, a subsidiary of BSH Hausgeräte GmbH, on Tuesday, announced the appointment of Saif Khan as the company’s new chief executive officer and managing director for India, effective June 2023.
Khan replaces Neeraj Bahl who decided to step down from his role, effective 30 April, 2023.
Khan has previously served as the head of sales and marketing, Central Asia, Near East and North Africa for BSH Home Appliances; he comes with over two decades in leadership positions in consumer durables MNCs. He has led a turnaround of the Central Asia and North Africa business in the last seven years at BSH. (Read More)
Small-cap company AVG Logistics Ltd, which deals in rail and other logistics business announced Q4 results on Monday after the market hours. So, the small-cap stock was in focus today as the company board declared strong fourth-quarter results along with Re 1 per share dividend to its eligible shareholders. As expected AVG Logistics' share price today opened with an upside gap and went on to hit a lifetime high of ₹238 apiece on NSE.
While discussing the audited quarterly results of the company, the board of directors also approved Re 1 per share dividend to its eligible shareholders. However, the record date for the dividend is yet to get fixed by the board of directors of this logistics company. (Read More)
India's internet economy is expected to register six-fold growth and touch USD 1 trillion by 2030, mainly driven by the e-commerce vertical, a joint report by Google, Temasek and Bain & Company released on Tuesday said.
The report estimates that India's internet-economy was in the range of USD 155-175 billion in 2022.
According to the report, the growth will be led by the B2C e-commerce segment, followed by B2B e-commerce, software-as-a-service providers and online media led by over-the-top players.
"India's internet economy is expected to grow 6 x to USD 1 trillion by 2030," Google India, Country Manager & Vice President, Sanjay Gupta said while sharing details of the report. (PTI)
Aditya Birla Group is set to foray into the branded jewellery retail business with an investment of ₹5,000 crore, competing with heavyweights such as Titan Company and Kalyan Jewellers.
The group's new venture “Novel Jewels Ltd" will have large-format exclusive jewellery retail stores across India, with in-house jewellery brands, the group said in a statement on Tuesday.
This is the group’s third major foray into a new business in the last two years after paints, and B2B e-commerce for building materials. Additionally, it also runs a large fashion retail business, under Aditya Birla Fashion and Retail Ltd., that sells men’s and women’s clothing, accessories and footwear. (Read More)
Dharampal Satyapal Group (DS Group) on Tuesday announced the acquisition of The Good Stuff Pvt Ltd, backed by Goldman Sachs and Mitsui Ventures. Formerly known as Global CP Pvt Ltd, the company sells chocolates and confectionary under the LuvIt brand.
DS Group declined to share the deal value.
Rajiv Kumar, vice chairman, DS Group, said the company could scale the LuvIt brand to ₹500 crore, up from the current ₹100 crore. Over a five-year period, its chocolates and confectionery business could grow five fold to touch ₹5,000 crore, up from ₹900 crore now, Kumar added. (Read More)
Indian states will aim to raise an aggregate of 173 billion Indian rupees ($2.09 billion) on Tuesday through the sale of bonds maturing in five years to 30 years.
The Reserve Bank of India will likely set cutoff yields for the 10-year bonds in the 7.32%-7.35% band, according to a Reuters poll of 13 traders. (Reuters)
Edtech major Byju’s has filed a suit in the New York Supreme Court against investment management firm Redwood, challenging the acceleration of a $1.2 billion term loan B (TLB) facility.
The Indian education technology startup has also sought to disqualify the lender for its “predatory tactics".
Byju’s has alleged that TLB lenders issued a notice demanding immediate payment of the entire amount under the TLB, despite knowing that the purported acceleration was under challenge before the court. (Read More)
Most IT stocks traded with losses in the morning trade on Tuesday (June 6) dragging their sectoral index Nifty IT down by two per cent. The index opened at 29,003.50 against the previous close of 29,238.75 but soon fell to the level of 28,662.65.
Shares of Persistent Systems and Mphasis fell up to 4 per cent while those of Tech Mahindra, Coforge and LTIMindtree fell over two per cent each. Shares of L&T Technology Services, Infosys, HCL Tech, TCS and Wipro fell up to two per cent.
The index, after a healthy gain of about six per cent last month, has been witnessing profit booking in June so far as investors fear that even if the Fed takes a pause in the June policy meeting, rates may be hiked later as the US jobs market remains tight and inflation remains elevated. This will hit the growth prospects of the US which is a crucial market for Indian IT companies. (Read More)
Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher Pvt. Ltd: BUY HINDALCO 419.70 STOPLOSS 400 TARGET 470 – TECHNICAL PICK
HINDALCO after forming a strong base near the 400 zone, had a decent pullback, and recently, after a short correction, it has consolidated and is near the long-term trend line support zone. The RSI is also well placed, and after the short dip, it has indicated a trend reversal with improving bias and has upside potential to anticipate a further rise in the coming days. We suggest buying and accumulating this stock for an upside target of 470 while keeping the stop loss at 400.
Parijat Agrawal, head-fixed income, Union Asset Management Company: The CPI, the core CPI and WPI have fallen in recent months. This is in line with the inflation prints that we are seeing globally. It gives confidence in our assessment that drivers of inflation have softened and high-interest rates and tighter financial conditions are working their way through economies. Going ahead we expect this trend to continue, falling close to the target 4% in time. There are visible signs that economic activity globally is moderating. Our economy has shown resilience amidst multiple challenges. In such a scenario it is expected that MPC will pause for an extended period of time and there will be no change in policy rate or stance. Monsoon will remain a key monitorable.
Thermax Ltd, the energy and environment solutions company, has been directed by an Arbitral Tribunal to repair and reinstate two Gas Turbo Generator (GTGs) at a customer’s plant at the company’s own cost and expenses.
The order is estimated to have a financial impact of ₹250 crore on Thermax, the company said.
“The Arbitrator has directed the Company to repair and reinstate both the GTGs at Customer’s plant at the Company’s own cost and expenses under the defect liability clause. The Arbitrator also allowed the customer’s claim on additional expenditure on power and directed the company to pay ₹173.72 crore with interest along with a sum of ₹95 lakh as arbitration cost to the Customer," Thermax said in an exchange filing. (Read More)
The initial public offering (IPO) of IKIO Lighting, a LED lighting solutions provider, opens for public subscription on Tuesday and will close on June 8. The ₹607 crore-worth IKIO Lighting IPO consists of a fresh issue worth ₹350 crore and an offer for sale (OFS) of up to 90 lakh shares by promoters.
The price band for the IKIO Lighting IPO has been fixed at ₹270 to ₹285 per share. Promoters Hardeep Singh and Sumeet Kaur will participate in the OFS by offloading 60 lakh and 30 lakh equity shares, respectively.
IKIO Lighting has already garnered ₹182 crore from anchor investors on June 5. The company allotted 63.84 lakh equity shares to a total of 16 funds at an issue price of ₹285 per share, as per the data on the BSE. (Read More)
Nelco shares gained nearly 7% on Tuesday's trade. The stock is in focus today as the its trading ex-dividend for payment of ₹2 per share final dividend to its eligible shareholders. Nelco share price opened at ₹646.10 apiece on BSE.
Additionally, the Tata Group Company signs an agreement to invest an initial sum of ₹99.99 lakhs in order to purchase a 9.09% share in Piscis Networks. It intends to raise its ownership stake in the business to at least 30%.
According to information provided by the company in an exchange filing, the Tata Group company has entered into the agreement(s) with the promoters and other shareholders of Piscis Networks Private Ltd on June 5, 2023, in accordance with the board of directors' approval, for an initial investment of Rs. 99,99,100 (Rupees ninety-nine lacs, ninety-nine thousand, and one hundred only) to subscribe 1,111 equity shares of Rs. 10 each, representing 9.09% This will depend on any consents and approvals needed to comply with applicable laws. (Read More)
Gold rates today opened sideways amid high bets of interest rate pause in the Reserve Bank of India (RBI) policy meeting, scheduled from 6th to 8th June 2023. MCX Gold price today opened higher at ₹59,869 per 10 gm but soon came under profit booking pressure and hit an intraday low of ₹59,813 levels. In the international market, the gold price is around $1,959 levels with an intraday loss of around 0.10 per cent.
Silver rate today opened lower at ₹71,971 per kg levels on MCX and went on to hit an intraday low of ₹71,951 levels within a few minutes of the commodity market's opening bell today. In the international market, the silver price is oscillating around $23.57 per ounce levels with an intraday gain of around 0.25 per cent. (Read More)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: The major trend in the market is that while Nifty is struggling to break out of the range of 18300-18600, the broader market is outperforming. Year till date, while Nifty is up 6.7%, the mid-cap index is up by 13.3% and the small-cap index is up by 15.2%. This is a huge outperformance. There is hyperactivity and some excesses building in some small-caps, which is why the exchanges have introduced Additional Surveillance Measures. Investors chasing low-grade small-caps have to exercise some caution.
Since the MPC June meeting starts today, there will be some focus on rate sensitives. The MPC is most likely to pause in this meeting, too, since retail inflation is under control and growth impulses are strong. The RBI commentary will be closely watched. Even though banking stocks have firmed up, there is valuation comfort in the leading banking names.
The Indian rupee opened 11 paise higher against the US dollar on Tuesday amid a dented demand for the greenback after weak US services data. The local unit opened at 82.56 a dollar as compared to Monday’s close of 82.67.
The dollar index was down at 103.90 in Asia, as data showed that the US services sector expanded at a slower-than-expected pace in May. (Read More)
Three stocks are going to trade ex-dividend today and those three dividend-paying stocks are Nelco, Seshasayee Paper and Prime Securities. Apart from this, Vipul Ltd stock would also be in focus as its board of directors are expected to consider and approve the proposal for dividend payment in its meeting scheduled today. (Read More)
After the FTSE index restructuring, which is set to take place on June 16, India is expected to see a net inflow of $250 million. Several Indian companies are anticipated to benefit from the index's revamping, said CNBC TV18 in a news report.
Medanta Global Health and Piramal Pharma are expected to get significant inflows, according to projections by IIFL. Piramal Pharma is anticipated to see inflows of $11.1 million, compared to $8.1 million for Medanta Global Health. Their inclusion in the FTSE All Cap Index is responsible for this gain. (Read More)
The government may shut debt-laden Mahanagar Telephone Nigam Ltd (MTNL) and shift its staff and operations to Bharat Sanchar Nigam Ltd (BSNL), two officials aware of the matter said, abandoning an earlier plan to merge the two state-run telcos.
The option of closure is under serious consideration since MTNL was continuing to make losses amid mounting debt, the officials cited above said on condition of anonymity. “It’s almost decided. MTNL would be shut down; the operations will be taken over by BSNL. BSNL is already executing operations in Delhi and Mumbai," one of the two officials said. (Read More)
Wipro shareholders approve share buyback programme worth ₹12,000 crore, Adani repays $2.65bn loans to cut leverage, SBI to consider approval for raising funds via private placement in board meeting, Bank of Baroda proposes auctioning stake in NSE, civil aviation ministry asks airlines to self-monitor airfares, SBI Cards to raise funds via issuance of NCDs, GCPL appoints Aasif Malbari as CFO, GE T&D India shareholders approve appointment of Sandeep Zanzaria as MD and CEO, Indian Energy Exchange trade volume grows by 8%, Plutus Wealth Management acquires shares of MTAR Technologies for ₹247 crore.
State-run Bank of Baroda (BoB) on Monday proposed to auction a part of its stake in the National Stock Exchange of India (NSE), even as the exchange’s much-anticipated public listing awaits a Supreme Court ruling.
A request for proposal issued by the bank has set a floor price that values India’s largest bourse at ₹1.56 trillion, way beyond rival BSE, which is valued at ₹7,790 crore.
The public sector bank has invited offers from eligible categories, including insurance companies, corporates, mutual funds, banks, public sector units, foreign institutional investors, non-resident Indians, and high-net-worth individuals to bid for 2.1 million shares amounting to 0.42% stake at a minimum of ₹3,150 a share, valuing its NSE holding at ₹661.5 crore. Partnerships are, however, not eligible to bid. (Read More)
The Adani Group has said that it has repaid loans aggregating $2.65 billion to complete a prepayment programme to cut the overall leverage in an attempt to win back investor trust after US short-seller Hindenburg levelled allegations of stock price manipulation against the port-to-energy conglomerate.
In a statement, the Adani group said it has repaid $2.15 billion of loans that were taken by pledging shares in the conglomerate's listed firms and also another $500 million in loans taken for the acquisition of Ambuja Cement. (Read More)
IT company Wipro informed that its shareholders have approved a share buyback scheme worth ₹12,000 crore, according to a scrutinizer report released on stock exchanges on Monday.
The Wipro board had approved the buyback of 26.96 crore equity shares at a price of ₹445 apiece.
According to the Scrutinizer's report on the special resolution by way of postal ballot and e-voting process, 99.9 per cent voted in favour of the share buyback resolution.
"The Chairman noted the results of voting as stated above and it was declared and recorded that the special resolution as set out in the Notice of Postal Ballot dated April 27, 2023, was duly passed by the shareholders on June 01, 2023, with requisite majority," the report said.
The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) is set to begin its three-day meeting on Tuesday. The second bi-monthly monetary policy meeting of FY24 is being held from June 6 to 8 and its outcome will be announced on June 8.
As per the street consensus, the RBI Governor Shaktikanta Das-led rate setting panel will keep the repo rate unchanged at 6.5% amid cooling inflation in the country.
The retail inflation rate, based on the consumer price index (CPI) has come down to 4.7% in April, which is below the RBI’s upper tolerance limit of 6%. CPI inflation in March was at 5.66%. (Read More)
Vaishali Parekh has recommended three intraday stocks for today, here we list out full details in regard to those day trading stocks:
1] Sumitomo Chemical: Buy at ₹415, target ₹430, stop loss ₹408;
2] BHEL: Buy at ₹85.50, target ₹89, stop loss ₹84; and
3] RCF: Buy at ₹105.50, target ₹110, stop loss ₹103.
Edtech giant Byju’s on Monday said it plans to take its wholly owned test-prep unit, Aakash Educational Services Ltd, public by the middle of next year.
The announcement comes on a day the edtech giant is slated to pay the $40 million instalment of an unrated loan of $1.2 billion it took in November 2021, the largest unrated loan by a startup ever. If Byju’s fails to make the quarterly interest payment by the 5 June deadline, the loan, seen as the main cause of its financial woes, will be termed as default.
Byju’s, which counts Sequoia Capital, Lightspeed Venture Partners, Silver Lake, Canada Pension Plan Investment Board or CPPIB, Tencent Holdings, and Naspers among its marquee investors, said its board approved the plan for an initial public offering (IPO) of Aakash, which offers coaching for competitive exams at brick-and-mortar centres. The company plans to soon announce merchant bankers to handle the public issue. (Read More)
U.S. stocks drifted lower Monday to start what could be a quiet stretch following their best week since March.
The S&P 500 lost 8.58 points, or 0.2%, to 4,273.79. The Dow Jones Industrial Average fell 199.90, or 0.6%, to 33,562.86, while the Nasdaq composite slipped 11.34, or 0.1%, to 13,229.43.
The majority of stocks on Wall Street sank after a report showed growth fell short of economists' forecasts for businesses in the construction, accommodation and other U.S. services industries last month. It was still a fifth straight month of expansion, though.
It's the latest mixed reading for a U.S. economy that has defied forecasts for a recession but has begun to slow under the weight of higher interest rates.
“There’s this muddle-through environment that the market is starting to work through," said Anthony Saglimbene, chief market strategist at Ameriprise Financial.
Monday's dip came after a weekslong rally carried Wall Street to its highest level since August. That was largely because a resilient job market has forced recession callers to keep pushing out predictions for a downturn by another few months. Still, pressure remains on the economy from the squeeze of still-high inflation, interest rates and cracks in the U.S. banking system. (AP)
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