The NSE Nifty closed above the 8300-mark for the first time since August 2015. The S&P BSE Sensex climbed 145 points or 0.5 percent higher to 27,144.
Nifty has closed firmly above 8300 levels which signal continuation in the uptrend. On the domestic front inflation will be a key data to watch for, the expectation is higher at 5.9 percent versus 5.8 percent last month. The pickup in government spending, implementation of 7th Pay Commission and a slew of new reforms have increased hope for passage of GST bill. Domestic consumer & consumer discretionary will continue to get positive buying. The broad market is likely to follow the suit in expectation of continued revival in corporate earnings as seen last quarter. The next resistance for Nifty is likely to stand at 8400-8450 levels.Vinod Nair, head of research, Geojit BNP Paribas said in an email statement.
Ultratech Cement-JP Associate Deal Under Implementation
Utratech’s Rs 15,900 crore deal to buy debt-laden JP Associates cement assets is “valid and under implementation”, the company said in a press release to the BSE.
Shares of JP Associates fell 3.3 percent today. The stock is up around 18 percent for the week.
Auto Sales Update
Maruti Suzuki June sales decline 14 percent to 98,840 units. The country’s largest car maker managed to export 6,707 units in June, a drop of 44.7 percent over a year ago period.
More details on June auto sales HERE
Jet Fuel Gets Costlier, LPG Cheaper
Aviation turbine fuel (ATF) price hiked by 5.5 percent for the fifth month in a row, but that of non-subsidised cooking gas (LPG) was cut by Rs 11 per cylinder, in line with global trends, according to a PTI report.
In the five increases, ATF rates have gone up by 25 per cent, or Rs 9,985.87, per kl since March. But the fuel used in aeroplanes is still cheaper than petrol and diesel.
Impact
- Jet Airways (-1 percent)
- InterGlobe (-0.08 percent)
- SpiceJet (-0.15 percent)
Earlier, oil marketing companies it cut diesel price by Rs 0.49 per litre, and diesel price by Rs 0.89 per litre.
Impact
- BPCL (+1.2 percent)
- HPCL (+1.9 percent)
- Indian Oil Corp (+4.2 percent)
With today’s gains, the equity benchmarks have wiped out losses made after the Brexit vote. The S&P BSE Sensex and the NSE advance over 3 percent for the week.
Top Gainers
- Dr Reddy’s (+3.2 percent)
- ITC (+3 percent)
- Gail (+2.5 percent)
- L&T (+2.5 percent)
- Tata Steel (+2.1 percent)
Top Losers
- Coal India (-0.7 percent)
- TCS (-0.7 percent)
- Maruti (-0.5 percent)
- Asian Paints (-0.4 percent)
ITC Trades Ex-Bonus
Shares of ITC rally as much as 5.7 percent to a 52-week high after the shares adjusted for the bonus issue. Shareholders will get one bonus share for every two that they hold.
ITC had announced 1:2 bonus shares issue in May.
Improving Macros
Nikkei PMI June Manufacturing PMI at 51.7, compared to 50.7 in May.
Strides Shasun Jumps 5% on USFDA Relief
Drug firm Strides Shasun said it has successfully completed a U.S. Food and Drug Administration inspection at the company’s oral dosage facility in Bengaluru.
More Information HERE
New Kid on the Block
Mahanagar Gas debuted at Rs 538.75 per share, a 27.9 percent premium to its issue price of Rs 421 per share. The listing price was just shy of the pre-open discovery price of Rs 540, on the NSE.
Opening Bell
Indian equity benchmarks open on a strong note. The S&P BSE Sensex climbs 170 points or 0.5 percent higher at 27,150, while the NSE Nifty rises around 40 points or 0.4 percent to 8,330, a fresh 2016 high for the index.
Stocks to Watch- Tata Motors, Hero Motocorp, Maruti etc to announce June sales
- Ultratech Cement: Company’s Rs 15,900 crore Jaypee deal hits a hurdle (Mint)
- United Spirits: ED probing forex violations in USL’s Whyte & Mackay deal (Mint)
- Jet Airways: Carrier may take USD 180 million loan (Mint)
- ABB India: CCI investigates company for unfair business ways (PTI)
- Strides Shasun: Says US FDA completed inspection of oral dosage facility
Get the full list HERE
Data/Event to Watch- 10:30am: Nikkei India Manufacturing PMI for May (Prior 50.7)
- RBI to conduct Rs 18,500 crore 14-day term repo auction
- India to auction Rs 1,85,000 crore of treasury bills in July-Sept.
- RBI sets rate of interest on floating rate bonds 2017 at 7.25 percent
- RBI to release of weekly forex, bank credit data
- RBI says Indian states expected to borrow Rs 70,000-75,000 crore in July-Sept
- L&T Infra Finance seeks to raise Rs 150 crore via debenture
- Shriram Transport plans to sell Rs 100 crore 2-part bond
IPO Watch- Mahanagar Gas share listing on NSE/BSE after IPO got 64.5 times demand in OFS by founders at Rs 421/share (NSE)
- Quess Corp IPO gets demand for 3.4 times shares offered, offer to close today (NSE)
- Government said to appoint banks for up to USD 177 million Cochin Shipyard IPO (Bloomberg)
Talking Points- India May key industries’ output rises 2.8 percent YoY
- India May consumer prices for industrial workers rose 6.59 percent
- India April-May budget deficit at Rs 2,29,000 crore or 43 percent of fiscal year target
- Indian Oil Corp. cuts gasoline price by Rs 0.89/liter, diesel by Rs 0.49/liter
- More Brexit uncertainty would affect emerging nations: World Bank President
- RBI says Euro trade transactions to be settled outside Asian Clearing Union (ACU)
- Cyprus to be removed from notified jurisdiction for Indian tax
- India notifies rules on computation of assets’ fair market value
- India to induct indigenous Tejas Combat plane
- Global funds Rs 1,110 crore of local stocks; domestic funds sell Rs 191 crore yesterday: Provisional data
- India monsoon rain 1 percent above normal in week ended June 29: IMD
- North India to see above normal rain in first week of July: IMD
- Rajan said to see three-yr term as short for RBI governor (PTI)
- Ruia family to give up control of Essar Oil (Business Standard)
- JPMorgan Chase to open three new branches in India (Economic Times)
Good Morning!
The early indicator SGX Nifty is trading slightly lower at 8,331 (down 4 points) despite positive global market set up.
On Thursday, the Nifty closed at 2016-high while the Sensex settled just below the 27,000-mark. The equity benchmarks have gained around 6.5 percent for quarter-ended June – their best quarterly returns since June-quarter of 2014 after Prime Minister Narendra Modi took office.
Also Read: Indian Stocks Cap Best Quarter Since Modi’s 2014 Election Win
U.S. stocks extended gains on day 3 and bonds yields hovered near record lows as investors speculated additional stimulus measures from central banks in the aftermath of Britain’s vote to leave the European Union. Asian markets too trade higher.
Global equities & commodities rally. SGX Nifty indicates a muted start for India pic.twitter.com/9bZAqj0lYY
— BloombergQuint (@BloombergQuint) July 1, 2016
Brexit concerns ebb as central banks in Europe signal looser monetary policy pic.twitter.com/Yxc8irPJIk
— BloombergQuint (@BloombergQuint) July 1, 2016
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