KEY HIGHLIGHTS
Sensex, Nifty Stage Strong Comeback: Closing Bell
India's equity gauges staged a strong recovery as it recovered most of the losses incurred by the worst market crash in four years in the previous session. The surge comes after the NDA pledged support for the alliance to form a government for the third term.
The NSE Nifty 50 closed 688.95 points, or 3.15%, higher at 22,573.45, while the S&P BSE Sensex ended up 2,303.1 points, or 3.2%, at 74,382.
Intraday, Nifty rose as much as 3.59% to 22,670.4, the highest intraday rise since Feb. 1, 2021; while Sensex advanced 3.41% to 74,534.8. During the session, the Nifty 50 companies' market capitalisation rose by Rs 5 lakh crore.
After opening at Rs 83.46, the Indian rupee strengthened 15 paise to Rs 83.37 against the US dollar. The yield on the 10-year bond was trading flat at 7.03%.
The stock volatility gauge, India VIX—which rose over 50% during poll counting—fell over 30% to 18.6 during the session.
Indian market exhibited a spirited recovery driven by broad based buying across various sectors, as political stability appears assured, according to Vinod Nair, Head of Research, Geojit Financial Services. "However, attention will remain on the formation of the government and the forthcoming RBI policy meeting."
The market does not expect any change in RBI’s policy stance given persistent high food inflation, and an expectation of an increase in government spending, which has led to a notable traction in FMCG stocks, Nair said.
All Nifty stocks ended higher during the session with HDFC Bank Ltd., ICICI Bank Ltd., Reliance Industries Ltd., Mahindra & Mahindra Ltd., and Axis Bank Ltd., contributing the most to the Nifty.
All Nifty sectors rose on Wednesday while Nifty Metal and Auto advanced the most.
The broader markets were higher as the BSE MidCap closed 4.41% higher and the BSE SmallCap ended 2.93% higher.
All 20 sectoral indices on the BSE rose. Telecommunication rose the most and capital goods underperformed.
The market breadth was skewed in the favour of buyers. Around 2,557 stocks advanced, 1,224 rose, and 97 remained unchanged on the BSE.
Adani Group Stocks Gain
NDTV PROFIT INVEST 2029: Register Now!
Date: June 6, 2024 (tomorrow)
Venue: NSE Auditorium, BKC, Mumbai
Time: 5:00 pm to 7:00 pm
Register at: https://ndtvprofit.typeform.com/to/EmG5DmDi
Shape your 5-year investment strategy as the new government term commences. Meet some of the best stock market voices in an interactive discussion to help identify the multi-baggers and understand other fundamentals to keep in mind to build a solid portfolio.
Event Details
Panel 1: What does a 3rd NDA term mean for the Indian Investor?
Guests: Madhu Kela, Neelkanth Mishra
Panel 2: Decode the Indian political landscape & policies of Modi 3.0
Guest: Amitabh Tiwari
Panel 3: Short and long-term trends of Indian stocks
Guests: Gautam Shah, Dr CK Narayan and Kush Bohra
Sensex, Nifty Recovers A Day After Worst Market Crash In Four Years: Midday Market Update
India's benchmark equity indices recovered on Wednesday, after facing the worst market crash in four years in the previous session, after Andhra Pradesh Chief Minister-Elect Chandrababu Naidu reiterated his commitment to the National Democratic Alliance.
At 12:03 p.m., the Nifty traded 426.70 points, or 1.95%, higher at 22,311.20, while the Sensex gained 1,331.66 points, or 1.85%, to trade at 73,410.71.
On Tuesday, the benchmarks had significantly fallen as the incumbant Prime Minister-led BJP secured lower-than-expected seats. Modi is set to lead a coalition government in his third term if the alliance manages to retain the unaligned Members of Parliament.
Also Read: Election Results 2024: Narendra Modi Elected NDA Leader; Joe Biden Congratulates Poll Victory
Market veterans expect volatility to continue in the coming sessions.
Mayuresh Joshi, head of research at Marketsmith India, attributed the jitteriness in the markets to uncertainty over the reform process and key decision-making by the new government. He advises investors to wait and watch for the next few days.
Aditya Arora, founder of Adlytick.in, noted that in the case of a coalition government, policymaking could change, and the focus could shift from capex to infrastructure. He advises investors to move to the FMCG sector due to its defensive nature.
Technically, the Nifty is expected to stay in the range of 21,500–22,200, according to Sudeep Shah, head of technical and derivatives research at SBICAP Securities. He noted that 21,250 is important support.
Shares of HDFC Bank Ltd., Hindustan Unilever Ltd., Mahindra & Mahindra Ltd., Infosys Ltd., and ITC Ltd., contributed the most to the Nifty.
While those of Larsen & Toubro Ltd., State Bank Of India, Power Grid Corp. Of India, Bharat Petroleum Corp. Ltd., and Grasim Industries weighed on the index.
Except Nifty PSU Bank and Nifty Realty, all sectoral indices rose. Nifty FMCG and Nifty Auto hit a lifetime high.
Broader markets also rose. S&P BSE Smallcap rose 1.74% and S&P BSE Midcap traded 2.61% higher. Nineteen out of 20 sectoral indices on the BSE rose. Only BSE Realty fell. BSE FMCG was the top gainer.
The market breadth was skewed in favour of buyers. Around 2,123 stocks rose, 1,504 declined, and 131 remained unchanged on the BSE.
New Government Swearing-In Ceremony Set For June 8
The swearing-in ceremony of the new government is likely to take place on June 8, NDTV reported quoting sources.
Also Read: Election Results 2024: Narendra Modi Elected NDA Leader; Joe Biden Congratulates Poll Victory
FMCG Stocks Outperform Benchmark As Brokerages Turn Upbeat
Shares of consumer goods companies extended gains despite the tighter-than-expected outcome of the 2024 Lok Sabha elections, as brokerages turned optimistic following the fourth quarter commentaries.
Emkay Global upgraded the sector to "overweight." Prabhudas Lilladher Financial Services Pvt. anticipates a recovery for companies such as Hindustan Unilever Ltd., Britannia Industries Ltd., Godrej Consumer Products Ltd., Marico Ltd., Dabur India Ltd., Emami Ltd., and Varun Beverages Ltd.
Irrespective of the regime that comes at the centre, sectors such as FMCG, auto, healthcare, IT services, private banks, and capital goods are expected to perform well, Prabhudas Lilladher said.
Geojit Financial Services Ltd. Chief Investment Strategist VK Vijayakumar concurred. Sectors like FMCG, healthcare, and IT will find increasing preferences, and the momentum play slows down, he said.
The surge comes after the pack bucked the market crash on Tuesday, when the Modi-led National Democratic Alliance won the election by a slim margin.
Shares of Britannia, Colgate Palmolive India Ltd., Dabur, Godrej Consumer, Marico, and United Spirits Ltd. were trading at a 52-week high on Wednesday.
Nifty FMCG rose as much as 5.26% during the day, before paring some gains to trade 5.08% higher as of 10:17 a.m. This compares to a 0.67% gain in the benchmark Nifty 50.
Hindustan Unilever led gains, rising 8% intrada, followed by United Spirits, Dabur, and Britannia, which rose over 6%, each, during the day.
Big Movers
Hindustan Unilever shares later pared gains, trading 7.87% higher at Rs 2,692.6 apiece as of 10:26 a.m.
The stock has fallen 0.12% in the last 12 months and has risen 1.3% year-to-date. Total traded volume so far today was 8.8 times its 30-day average. The relative strength index was at 79.
Of the 42 analysts tracking the company, 24 maintain a 'buy' rating on the stock, 12 recommend a 'hold' and six suggest a 'sell', according to Bloomberg data. The average 12-month analyst consensus price targets imply a potential downside of 4.7%.
United Spirits stock rose as much as 7.48% intraday to hit a 52-week high. It pared gains, trading 6.9% higher at Rs 1,287 apiece.
The stock has risen 46% in the last 12 months and 15% year-to-date. Total traded volume so far today was 5.2 times its 30-day average. The relative strength index stood at 69.
Twelve out of the 24 analysts tracking the company have a 'buy' rating on the stock, eight recommend a 'hold' and four suggest a 'sell', according to Bloomberg data. The average 12-month analyst consensus price targets imply a potential downside of 4.5%.
CLSA Tweaks India Portfolio After Election Outcome
CLSA has turned defensive, replacing Larsen & Toubro Ltd. with HCL Technologies Ltd. in its India focus portfolio, as tigther-than-anticipated election outcome raises concerns of policy-making styles.
The brokerage is 'underweight' on autos and industrials, which supports its move to remove Larsen & Toubro from its India Focus portfolio. L&T has been in its portfolio since its inception in January 2021. The house is now clearly 'overweight' in banks, commodities, and IT, along with insurance and staples, with ITC Ltd. being the preferred staples name.
Read more here.
Moody's On India Election Outcome
Incumbent victory suggests policy continuity while fiscal metrics remain weak.
Expect policy continuity, especially with regard to budgetary emphasis on infrastructure spending and boosting domestic manufacturing, to support robust economic growth.
India's fiscal outcomes will remain weaker than Baa-rated peers, even as the final budget for the fiscal year ending March 2025.
Near-term economic momentum masks structural weaknesses that pose risks to long-term potential growth.
High levels of youth unemployment across all sectors and weakness in productivity growth in the sovereign's large agriculture sector continue to constrain its growth potential.
Expect the incoming government to carry over its focus on fiscal consolidation, material improvements in its debt ratios and interest servicing have yet to materialize.
Nifty Auto Hits Record
Shares of Mahindra & Mahindra, Hero MotoCorp and Maruti Suzuki contributed the most to the gains.
Lupin Completes Acquisition Of Two Brands
Completes acquisition of 2 brands from Sanofi in Europe and Canada
Source: Exchange filing
RBI Okays Zurich Insurance Acquisition In Kotak General
RBI approves Zurich Insurance's proposed acquisition of 70% stake in Kotak General
Zurich Insurance will be buying Kotak General stake for Rs 5,560 crore
Source: Exchange filing
Broader Indices Catch Up
Chandrababu Naidu Affirms Commitment to NDA
Chandrababu Naidu Affirms Commitment to NDA Andhra Pradesh CM-Elect Chandrababu Naidu reiterated his commitment to the National Democratic Alliance, underscoring the significance of the coalition's victory in the 2024 Lok Sabha and Assembly elections.
Speaking to the media, Naidu emphasised the collaborative effort of TDP, Jana Sena, and BJP in securing the electoral triumph, acknowledging the support extended by prominent leaders from Delhi, including Amit Shah, Prime Minister Modi, and JP Nadda, during the campaign.
Volatility Gauge Falls As Benchmarks Rise
Heritage Foods Hits Lifetime High As Founder Wins Lok Sabha Elections From Andhra Pradesh
Shares of Heritage Foods Ltd. extended gains for the third consecutive session today to hit their lifetime high after its founder, who is also Telugu Desam Party chief, Chandrababu Naidu won the elections by a landslide.
Telugu Desam Party secured 16 seats out of 25 and is set to form a coalition government in an alliance with the Bhartiya Janata Party who won three seats and the Janasena Party who two seats. As of March 2024, Naidu's wife Bhuvaneswari Nara held 24.37% stake in the company.
The stock has been rising consecutively in three sessions and has gained 33.63% during this period.
The scrip rose as much as 18.21% to Rs 538.40 apiece, the highest level. It pared gains to trade 15.29% higher at Rs 524.20 apiece, as of 10:34 a.m. This compares to a 0.60% advance in the NSE Nifty 50 Index.
It has risen 72.19% on a year-to-date basis and 148% in the last 12 months. Total traded volume so far in the day stood at 4.05 times its 30-day average. The relative strength index was at 89.97, indicating that the stock may be overbought.
Four analysts tracking the company have a buy rating for the stock, according to Bloomberg data. The average 12-month consensus price target implies a downside of 14.5%..
Defence Stocks Fall
Shares of all defense companies including those of Hindustan Aeronautics Ltd. and Cochin Shipyard Ltd. extended losses on Wednesday after Prime Minister Narendra Modi-led BJP failed to win majority support in the elections
FMCG Stocks Rise
Shares of consumer goods companies extended gains despite the tighter-than-expected outcome of the 2024 Lok Sabha elections, as brokerages turned optimistic following the fourth quarter commentaries.
All stocks in the index rose with five of them hitting their lifetime highs including Britannia Industries, Colgate-Palmolive, Godrej Consumer, Marico, and United Spirits
Hindalco Shares Fall As Novelis IPO Postponed
Shares of Hindalco Industries fell after the company's unit Novelis announced the postponement of US IPO due to market conditions. A press release said that Novelis will continue to evaluate the timing of the offering in the future.
The scrip fell as much as 6.48% to Rs 607, its lowest level since Tuesday. It pared gains to trade 2.8% lower at Rs 631.40 as of 9:49 a.m. This compares to a flat Nifty.
Three Nifty Stocks Hit Record High
Some Sectoral Indices Fall After Higher Opening
Nifty Opens Over 200 Points Higher As RIL, HDFC Bank Lead Gains: Opening Bell
Benchmark equity indices saw a gap-up opening after Tuesday's crash with heavyweights and FMCG stocks leading the gains.
At pre-open, the Nifty was at 22,128.35, up by 243.85 points or 1.11% and the Sensex was at 73,033.93, up by 948.83 points or 1.32%.
"Nifty can find support at 21,800 followed by 21,700 and 21,500, said Deven Mehata, research analyst at Choice Broking. "On the higher side, 22,000 can be an immediate resistance, followed by 22,150 and 22,200."
"On the higher side, 22,000 can be an immediate resistance, followed by 22,150 and 22,200," he added.
Shares of Reliance Industries Ltd., Hindustan Unilever Ltd., Mahindra & Mahindra Ltd., Infosys Ltd., and HDFC Bank Ltd. led the initial gains.
While those of Larsen & Toubro Ltd., Hindalco Industries Ltd., Axis Bank Ltd., ICICI Bank Ltd., and Power Grid Corp. Of India Ltd. capped the upside.
All sectoral indices on the NSE rose. Nifty Oil & Gas, Nifty Auto, and Nifty PSU Bank were the top gainers.
Nifty, Sensex Higher At Pre-Open
At pre-open, the Nifty was at 22,128.35, up by 243.85 points or 1.11% and the Sensex was at 73,033.93, up by 948.83 points or 1.32%.
Yield On The 10-Year Bond Flat
The yield on the 10-year bond opened flat at 7.03%.
It closed at 7.04% on Tuesday.
Source: Cogencis
Rupee Strengthens Against US Dollar
The local currency strengthened by 6 paise to close at 83.46 against the US dollar.
It closed at 83.52 on Tuesday.
Source: Bloomberg
KEC International Gets New Orders
Gets new orders of Rs 1,002 crore in its civil businesses
Orders include residential projects in northern and southern India
Construction of official residences for senior defence officials
Source: Exchange filing
Philip Capital on Lok Sabha Elections 2024: India Strategy
Brokerage's bear case scenario has played out
Expect market volatility till one gets clarity on detailed aspects of govt formation
To watch out for: NDA partners' influence on BJP, extent of socialism
Expect further erosion of market valuation premium; valuations still not attractive
Stock picks: ICICI Bank, SBI, Axis Bank, Shriram Finance, Muthoot Finance, Sundaram Finance, Infosys, LTIMindtree, Persistent, UltraTech, Ambuja Cements, JK Cement, L&T
Stock picks: Siemens, HAL, BEL, Reliance, GAIL, IGL, Bharti, Sun Pharma, Divi's Labs, Syngene, JSW Steel, Jindal Stainless, Hero MotoCorp, TVS Motor, Bharat Forge, Ashok Leyland, HUL
Stock picks: GCPL, Marico, Zomato, NCC, Praj, SRF, Aarti Industries, Navin Flourine, PI Industries, Coromandel, Dhanuka Agritech
Ixigo IPO Update
Le Travenues sets IPO price band in the range of Rs 88-93/share
IPO to open on June 10, close on June 12, for retail investors
Source: Company statement
Angel One-May Business Update
Client base at 2.38 crore, up 3.7% MoM
Average daily orders at 75.6 lakh, up 11.6% MoM
Source: Exchange filing
IIFL on India Strategy
NDA government skating on thin majority ice
Surely cause multiple compression (Nifty is 14% richer than 5y pre covid avg and SMID indices are 55-60% richer)
Initially concentrated on unreasonably pricey sectors like PSUs and Cap goods, but becoming more broad based over time (expect upto 10% compression)
Recommends stocks with decent growth, less linkage to govt. action and valuation support, especially in large caps
Auto, consumer, banks, NBFCs. Cement, pharma, healthcare should do well.
Introduces Sun Pharma, Apollo Hospital in large caps (removing SBILI and BPCL)
Nuvama On Gujarat Gas
Nuvama maintains 'Buy' on Gujarat Gas at Rs 676 target
Saudi Aramco has cut propane price by $35/ton on
Believe current industrial PNG price is at par with propane
GGL enjoys additional Rs 4/scm advantage over propane
Believe seasonality will not impact volume shift from propane to gas
Expect GGL's volumes to gradually move to historical 7mmscmd level
GGL regaining historical avg volume, to add 30% to current volumes
Expect double-digit volume growth on new GAs, new CNG stations, industrial business revival
Emkay on Hero Motocorp
Reiterates Buy with target of Rs 6000, 13% Upside
Defensive bet with strong growth, re-rating triggers
2W recovery continues to broaden, rural segment also making a return
Continue to expect 2-3 year growth visibility led by return of first-time buyers
Positioning in fast-growing 125cc motorcycle category has been uplifted by the recently-launched Xtreme 125R
Has over a month of waiting per channel checks despite strong competition;
Market share has improved to 17% in Apr-24 vs. the recent 9% low
Trades at 20x FY26E PER vs. 26-30x for other 2Ws
Morgan Stanley on India Equity Strategy
Our medium to long-term views do not change
Expects realized and implied volatility to ebb in the coming days from its level on June 4
Unresolvable disagreements within the NDA coalition are not priced in by the equity market
Pace/direction of reforms is unlikely to change
BJP-led NDA government is unlikely to sacrifice macro stability as its anchor to economic policy
Does not expect an increase in populist spending.
Key events to watch:
• Government and cabinet formation over the next few days.
* The RBI policy on June 7 they expect no change in policy rate.
* The onset of the monsoons – rains are expected to be above average.
* The budget which is likely in early July: The interim budget pegged the deficit at 5.1% with capital spending growth exceeding social expenditure.
* The earnings season starts in the second week of July.
Prabhudas Lilladher India Strategy
Stocks Likely To Bounce Back
FMCG: HUL, Britannia, GPCL, Marico, Dabur, Emami, Varun Beverages
Auto: Eicher, Hero MotoCorp, M&M, Maruti Suzuki
Pharma, Hospital- Sun, Max Healthcare, Lupin, Jupiter Hospitals
Private Banks: HDFC Bank, Kotak Axis and ICICI Bank
Capital Goods: Siemens, ABB, Elantas Beck, Timken, Hitachi Energy, GE T&D
Commodities: Hindalco
Consumer Durables/ Telecom: Havells India, Bharti Airtel, Delhivery, Astral, Crompton Consumer
Stocks Who's Near Term Rerating Looks Unlikely
Infra: L&T, Adani Ports, Road & Metro EPC companies
Capital Goods: Siemens, ABB, Carborandum, Schneider, Esab, Ingersoll Rand, Kirloskar Pneumatic
Defence: HAL, BEL, BDL, BEML, Mazgaon Dock, Cochin Ship
Cement- UltraTech Cement, Ambuja Cement
New Energy: RIL, Sterling Wilson, Waree, L&T, Praj Industries
Metals: JSPL, JSL
PSU Banks: SBI, BOB, Canara, Union, PNB
PSU: Across Sectors including OMCs
Wire and Cable, EMS: Polycab, RR Kabel, Dixon, Amber, Keynes, Syrma
Emkay On Consumer Goods
Shift in political climate adds another tailwind to the consumption story of India
Already anticipated tailwinds from the rural turnaround and better monsoon
Now believes that the current majority will keep government on its toes with pro-consumption initiatives being key and will aid overall valuations
Upgrades HUL to BUY (from Add)
Nestle India to ADD (from Reduce)
Downgrade ITC to ADD from Buy amid near-term business pressures
Now prefers HUL, Dabur India, Bikaji, and Honasa
Prabhudas Lilladher India Strategy: Key Takeaways from General Elections
Watch for portfolio allocations and budget next month
Speed of policy reforms to slow down, tricky reforms might take a backseat
Loss in UP, Maharashtra unprecedented- expect higher show of freebies, social engineering in coming elections
PSU, PSU Banks, Defence, Infra, Capital Goods re-rating to take back seat
Consumption, Pvt banks, Auto, Healthcare show rising traction
Favorable monsoon forecast, future RBI rate revision drive consumption sector
Emkay Cuts Nifty's Target To 22,000 From 24,000
NDA returns but with a weaker mandate; several large states see major swings
Changed political realities could change near-term economic priorities
Brokerage does not expect material change in broad macro backdrop
Land, agri, labor, political reforms to take a back seat
Privatization, asset monetization at risk
No major risk to macro financial stability; maintain FY25 growth at 6.5%
Brokerage Turns Defensive on Markets
Cut Nifty target from 24000 to 22000, implying near-zero returns for market in 12 months
Turns 'Underweight' on Industrials, Downgrades Real Estate
Upgrades FMCG, IT, Healthcare to 'Overweight'
Retains Overweight on durables, with greater focus on OEMs over ancillaries
Dip below 20000 to be trigger to enter the market
Brokerage does not see an extended bear market
Shift near-term preference to large, and top-end midcaps
From 2-3 year perspective, retains SMID preference
Nuvama Maintains 'Buy' On Gujarat Gas At Rs 676 Target
Saudi Aramco has cut propane price by $35/ton on
Believe current international PNG price is at par with propane
GGL enjoys additional Rs 4/scm advantage over propane
Believe seasonality will not impact volume shift from propane to gas
Expect GGL's volumes to gradually move to historical 7mmscmd level
GGL regaining historical avg volume, to add 30% to current volumes
Expect double-digit volume growth on new GAs, new CNG stations, industrial business revival
Citi On India Brokers And Asset Managers
Revenue dependence of wealth managers on listed equities is lower than for other capital-market players
Multi-product models tend to cushion wealth managers from revenue volatility in market downturns
Continues to prefer multi-product annuity-based models with high customer stickiness in capital markets
360 One remains well placed, in their view and remains their preferred pick
Alternate focused asset management and advisory are likely to fare well in a sluggish broader market
Incremental earnings trajectory in any market downturn would remain a monitorable
Citi on India Economics
BJP fails to cross the simple majority on its own
FY25 fiscal deficit could remain at ~5.1% of GDP
Available fiscal space could be spent on rural/welfare focused schemes
Capex focus could remain
Broad agenda of infra, manufacturing, technology focus could continue
Contentious reforms could be delayed
Rates market would focus on commitment to fiscal glide path
Clarity to emerge in the July budget
Continue to expect status-quo at June RBI MPC meet
RBI could limit disorderly large depreciation bias in INR
Election outcome will likely increase near term volatility in equity and risk perception, impacting market multiples in the near term
Expects continued, albeit calibrated, policy focus on infra, increased focus on rural
Nuvama on Home Decor Sector: Prefer Plastic Pipes Over Tiles; Avoid Wood Panel Players
Maintaina 'Buy' on Supreme, Prince Venus pipes, APL Apollo Tubes
Plastic pipe firm's saw limited Q4 revenue growth on lower realisations
Tiles segment continues to face slowdown on export oriented pressures
Wood players saw profits dip on capacity additions, higher timber prices, stiff competition
Plastic pipes players remain confident of demand surge
More capacity in plywood, MDF has led to under-utilisation and price wars
Plastic pipe players continue to see strong demand from all segments
Uptick in PVS prices to help margin expansion for plastic pipe firms
Nuvama On Election Implication on Economy & Markets
New government raises policy uncertainty, reform push could slow down
Rural/lower-end economy to be back in focus
Expect capex push to take a breather
Consumption likely to outpace capex in FY25
Election outcome does not derail India’s medium-term policy direction
Yesterday's market fall particularly striking in cyclicals: industrials, PSUs, midcaps
Maintain defensive bias; prefer consumption over capex on-
1. Weak demand weighing on private capex
2. General govt capex decelerating
3. Elevated valuations of cyclicals
Hindalco Unit Novelis Postpones US IPO
Hindalco unit Novelis announces postponement of US IPO due to market conditions
Novelis will continue to evaluate the timing of the offering in the future
Source: Press release
CLSA's India Strategy: Modi Stocks To Remain In Focus, Replace L&T With HCL Tech
BJP lacking simple majority raises doubts over stable govt and policy-making styles
Nifty remains 19x above 18- historical avg P/E even after pullback yesterday
Replaces L&T with HCL Tech in India Portfolio
Preferred sectors: Private banks, IT, insurance, commodities
ITC remains brokerage's preferred staples stock
Exposure Modi stocks limited to ONGC, RIL which saw <15% re-rating in last 6 months
Brokerage fears de-rating in expensive discretionary, capex space
Prefer valuation support in private banks
Bernstein On India Financials
Results were a surprise vs thumping majority expected
Concern: return of coalition politics in policy decisions
Capex led growth in corporate credit may slow
PSU Bank reforms to slow
Reforms include external hiring of senior management, potential privatisation, loan waivers
Increased welfare and rural spending may delay rate cuts
Outpeform: Axis Bank target Rs 1,250, HDFC Bank target Rs 2,100 (+42%)
Market perform: ICICI Bank target Rs 1,250, Kotak target Rs 1,750, SBI target Rs 810
Bernstein's India Strategy After Surprise Verdict: Keep Nifty target unchanged at 23,500
See volatility to remain a feature given policy path uncertainty
Overweight on select Financials, Underweight on SMIDS over large caps
Market sell down was extreme, expect modest rebound led by capex-linked stocks
Expects govt to increase spending towards direct social schemes
Capex likely to be driven more by the private sector going forward
Government approach to weak rural needs to be watched
Government continuity powerful enough to support the economy
Global Cues
US Dollar Index at 104.15.
US 10-year bond yield at 4.33%.
Brent crude down 0.12% at $77.43 per barrel.
Nymex crude down 0.20% at $73.10 per barrel.
Bitcoin was flat at $71,025.19
The GIFT Nifty was 60 points, or 0.27% lower at 22,040 as of 7:16 a.m.
F&O Cues
Nifty June futures down by 6.12% to 21,908.15 at a premium of 23.65 points.
Nifty June futures open interest up by 1.17%.
Nifty Bank June futures down by 7.8% to 47,088.55 at a premium of 159.95 points.
Nifty Bank June futures open interest up by 8.65%.
Nifty Options June 6 Expiry: Maximum call open interest at 24,700 and maximum put open interest at 20,200.
Bank Nifty Options June 5 Expiry: Maximum call open interest at 57,000 and maximum put open interest at 40,000.
Securities in ban period: Zee Entertainment Enterprises
Trading Tweaks
Ex/record dividend: Reliance Industrial Infrastructure, Manappuram Finance.
Ex/record buyback: Sharda Motor Industries.
Moved into short term Framework: Adani Power.
Moved out of short-term Framework: Jana Small Finance Bank.
Insider Trades
Marksans Pharma: Promoter Sandra Saldanha bought 47,000 shares on June 3.
Manappuram Finance: Promoter Nandakumar V P bought 2 lakh shares on June 3.
Krishna Institute of Medical Science: Promoter Bhaskara Rao Bollineni created a pledge for 2.21 lakh shares on May 31.
Bulk Deals
Multi Commodity Exchange: WF Asian Smaller Companies Fund Ltd. bought 4.97 lakh shares (0.97%) at Rs 3,212.43 apiece.
NCC: Small Cap World Fund Inc sold 54.02 lakh shares (0.86%) at Rs 265.13 apiece.
Block Deal
Hinduja Global Solutions: Aasia Exports sold 11.6 lakh shares (2.49%), Hinduja Group Ltd. bought 11.6 lakh shares (2.49%) at Rs 804 apiece.
IPO Offering
Kronox Lab Sciences: The public issue was subscribed to 24.58 times on day 2. The bids were led institutional investors (3.39 times), non-institutional investors (52.93 times), and retail investors (24.53 times).
Stocks to Watch
Hindalco Industries: US subsidiary Novelis said early on Wednesday that it plans to postpone its $945 million initial public offering, citing 'market conditions'.
Wipro: The company announced that it has partnered with Zscaler to introduce Wipro Cyber X-Ray, an AI-assisted decision support platform.
Hindustan Aeronautics: The Sukhoi 30 MKI aircraft crashed while on a test sortie from the company's Nashik Division. Both pilots have been ejected safely; a technical snag was reported by the pilots.
Tata Motors: The company incorporated the wholly owned unit TML Commercial Vehicles as part of the proposed demerger.
NLC India: The company will consider raising a foreign currency loan of up to $600 million on June 10.
Shilpa Medicare: The company's wholly owned subsidiary filed its first drug master file of recombinant human albumin 20% with the USFDA.
Jindal Stainless: The company acquired a 100% stake in Evergreat International Investment.
Container Corp: The company signed a MoU with Shipping Corp. to provide end-to-end logistics solutions.
GIFT Nifty Trades Near 22,000
The June futures contract of the GIFT Nifty index traded 0.27% or 59.5 points lower at 22,041.
Stocks in the Asia-Pacific region traded mixed following higher closure of Wall Street counterparts on renewed expectations of rate cuts by the Federal Reserve due to a cooling US labour market.
The bond market gained ground as indications of a cooling labour market fuelled speculation that the Federal Reserve might implement rate cuts this year, as reported by Bloomberg. US 10-year yields continued a four-day decline, reaching almost 30 basis points.
The S&P 500 saw a 0.15% rise, and the Nasdaq Composite advanced by 0.17% as of Monday. The Dow Jones Industrial Average also climbed by 0.36%.
Brent crude traded 0.10% lower at $77.44 a barrel. Gold edged up by 0.01% to $2,327.34 an ounce.
Indian equity indices experienced their most significant decline in over four years, with poll trends suggesting a closer contest for the incumbent Prime Minister Narendra Modi government than anticipated. However, consumer goods stocks stood out as the sole gainers on Tuesday.
The NSE Nifty 50 concluded 1,379.4 points, or 5.93%, lower at 21,884.5, while the S&P BSE Sensex ended down 4,389.7 points, or 5.74%, at 72,079.
On Tuesday, overseas investors turned net sellers after two consecutive sessions of buying. Foreign portfolio investors offloaded stocks worth Rs 12,436.2 crore—the highest figure this year—while domestic institutional investors, who had been buyers for 10 consecutive sessions, turned net sellers and sold equities worth Rs 3,318.98 crore, according to provisional data from the National Stock Exchange.
The Indian currency concluded 38 paise lower against the US dollar at 83.53.
RECOMMENDED FOR YOU
Wipro Q1 Results Preview: Analysts See Muted Growth, Margin Pressure Likely
Jul 15, 2025
Stock Market Today: Nifty Ends Below 25,500, Sensex Settles Nearly 200 Points Lower As RIL, ICICI Bank Drag
Jul 09, 2025
Stock Market Today: Nifty, Sensex End Higher On Last Hour Gains; Kotak Bank, HDFC Bank Rise
Jul 08, 2025
Stock Market Today: Nifty, Sensex Settle Nearly Flat After Choppy Trade; RIL, HDFC Bank Shares Rise
Jul 01, 2025
POPULAR