Sensex, Nifty Fall For Third Day Dragged By RIL, Bajaj Auto, OMCs
India's stock benchmarks logged losses after swinging between gains and losses for the most part of the session.
10-Year Bond Yield Falls 2bps To 7.58%
Yield on the 10-year bond rose 1bp to a three-year high of 7.62% during the session.
10-year bond yield eased off those levels to close at 7.58%.
Source: Bloomberg
Rupee Closes At 78.01 Against Dollar
Indian currency fell 0.11% (8 paise) to 77.96 during the session.
The Rupee erased losses to close at 78.
The Rupee fell to a record low 78.28 on Monday.
Source: Bloomberg
Closing Bell
India's stock benchmarks logged losses after swinging between gains and losses for the most part of the session. Energy, oil & gas stocks dragged as Sensex and Nifty extended losing streak for the third day.
The Sensex lost 0.29% (over 150 points) to 52,693.57. The 30-stock gauge traded in an over 600-point range between 53,095.32 and 52,459.48. The Nifty also declined by similar magnitude to 15,732.10. Today, 26 of the Nifty 50 stocks gained while 24 fell. Bajaj Auto was the top loser, falling over 5% after the company deferred the buyback proposal during the final hour of trade.
The MidCap index outperformed Sensex and Nifty, losing 0.15% while the SmallCap index almost mirrored its larger peers. Ten of the 19 sectoral indices compiled by BSE declined, with Energy and Oil & Gas index losing over 1%.
The market breadth is skewed in the favour of bears. About 1,550 stocks rose, 1,766 fell and 133 remained unchanged.
"Nifty 50 closes its day at above good resistance zone of 15,700 and if index holds above this mark for coming trading sessions then we may see more upward move towards 16,00-16,200 mark which are another resistance zone on the upside. Crucial support for Nifty 50 is 15,500 while Nifty may face some resistance at 16,300", Mohit Nigam, Head - PMS, Hem Securities wrote in a note.
HPCL Falls Most In Four Months To 52-Week Low; BPCL, IOC Decline
Shares of oil marketing companies fell amid concerns that elevated crude prices could pile the pressure on the margin front.
Source: Bloomberg
Rice Mills' Stocks Gain After Government Clarification On Exports
Shares of rice mills like Kohinoor foods, LT Foods rose while KRBL and Chaman Lal Setia pared intraday gains.
This comes after Food Secretary Sudanshu Pandey clarified on Monday that there are no plans to restrict rice shipments as there are ample stockpiles of rice.
Sudhanshu Pandey also told reporters that the government will consider wheat export requests from other countries on a case-by-case basis.
Source: Bloomberg
Bajaj Auto Defers Buyback Proposal
The Bajaj Auto board has decided that further deliberations are required in order to take a decision on the proposal of buyback and deferred the matter.
On June 9, the company had said it would consider a buyback proposal.
Source: Exchange filing
DGCA Imposes Rs 10 Lakh Fine On Air India.
Air India fined for denying boarding to passengers holding valid tickets.
Show cause notice to airline revealed it does not have a policy in this regard and that no compensation was paid to such passengers.
Air India has been advised to immediately put the systems in place to resolve the issue, failing which further action will be taken.
Source: Press note
G R Infraprojects Slips To Lowest Since Listing After CBI Raid & Employees' Arrest
Shares of G R Infraprojects lost over 9%. The stock has shed over 16% in two sessions to slip to the lowest level since listing in 2021.
The decline comes after CBI conducted sears at the Chairman's residence and corporate office.
The company clarified to exchanges on Monday on a news report stating that the CBI arrested NHAI, G R Infra officials amid alleged irregularities in highway project.
G R Infraprojects confirmed that the CBI conducted search at the residence of the company's chairman Vinod Kumar Agarwal and also the corporate office of the company at Gurugram on Monday.
The search at the chairman's residence was completed on Monday while the process is still underway at the company's office.
G R Infraprojects also confirmed that few of its employees have been arrested at project site, but more information is being awaited.
Trading volume on the stock is more than 25 times the average. The relative strength index is at 18, suggesting that the stock may be oversold.
Of the 16 analysts tracking the company, 12 suggest 'buy', three recommend 'hold' and one maintains 'sell'. The return potential of the stock is 49.9%.
Source: Exchange filing, Bloomberg
European Markets Open Higher
European markets open higher ahead of two-day FOMC meet despite weak macro data as inflation surged to a five-decade high in May in Germany.
Euro zone industrial production data is also scheduled to be released today.
Source: Bloomberg
Mid-Day Market Update: Sensex, Nifty Swing To Losses In Volatile Session; RIL Leads Decline
India's stock benchmarks declined after swinging between gains and losses in a volatile session so far. This comes amid fall in global equities after a weak close on Wall Street and elevated crude prices.
The Sensex fell 0.26% to 52,707.50. The 30-stock gauge traded in a 650-point range between 52,459.48 ad 53,095.32. The NSE Nifty also declined by similar magnitude to 15,747.10. Today 28 of Nifty 50 stocks rose, 21 fell and one remained unchanged.
The broader indices outperformed their larger peers, with MidCap index gaining 0.2% and SmallCap gauge little changed. Twelve of the 19 sectoral indices compiled by BSE rose, with Utilities, Power, Realty indices adding 1%. On the flipside, the Energy and Oil & Gas measures lost 1%.
The market breadth is skewed in the favour of bulls. About 1,738 stocks advanced, 1,466 declined and 125 remained unchanged.
WPI Inflation Rises Further In May
WPI inflation at 15.88% in May versus 15.08% in April.
Source: Government Release
WPIL Gains Most In A Week On Rs 430.87 Crore Order From West Bengal Government
Shares of motors and pumps' maker WPIL gained 3.45% on the BSE, the most in a week.
The company has received an order from the Government of West Bengal for execution of a turnkey project, comprising of commissioning of a clear water reservoir.
The contract is valued at Rs 430.87 crore and will be completed over a period of 24 months.
Trading volume on the stock is nearly twice the 30-day average.
Source: Exchange filing, Bloomberg
Torrent Power Gains Most In Nearly Two Weeks
Shares of Torrent Power gained over 2.6%, most in nearly two weeks.
The rise comes after the company completed acquisition of 50 Mega Watt power plant in Telangana with an enterprise value of Rs 416 crore.
Long-term power purchase agreement for the project is with Northern Power Distribution Company of Telangana for a period of 25 years at a fixed tariff of 5.35 per kWh, with remaining useful life of 20 years.
Trading volume is nearly 1.5 times the 30-day average. Of the 13 analysts tracking the company, five suggest 'buy', five recommend 'hold' and three maintain 'sell'. The return potential of the stock is 0.4%.
Source: Exchange filing, Bloomberg
Kotak Mahindra AMC's Nilesh Shah Advises Caution Amid Volatility
Bharti Airtel launches India's First Multiplex In The Partynite Metaverse Platform
The multiplex is an extension of Airtel's Xstream Premium offering.
Xstream recently achieved 2 million subscriber milestone within 100 days of its launch.
Xstream multiplex will be a 20-screen platform with access to content from leading OTT partners available on the application.
It also offers immersive content experience, which allows users to interact on Partynite Metaverse.
Source: Exchange filing
Asian Paints Slips Most In A Week
Zydus Lifesciences' Chairman Pankaj Patel Named On RBI Central Board
Zydus Lifesciences' Chairman Pankaj R Patel has been appointe as part time non-official director in the Central Board of the Reserve Bank of India, the company said in an exchange filing.
The Appointments Committee of the Cabinet (ACC) approved the appointment for a period of four years.
Patel is already on the board of Invest India, Member of the Mission Steering Group under National Health Mission, Drug Technical Advisory Board under Ministry of Health & Family Welfare.
Source: Exchange filing
Metropolis Declines Despite Clarifying That Promoters Have 'No Intention To Exit The Business'
Shares of Metropolis Healthcare fell nearly 2.5% following a 5.5% decline on Monday.
The decline comes after a report on Monday in The Economic Times stated that serial entrepreneur GSK Velu is exploring a bid for significant stake in Metropolis, citing people aware of the development.
The report also added that the Chief Executive of Metropolis Ameera Shah and her family has initiated a process to sell part of the promoter stake. Ameera Shah's family holds 50% stake in Metropolis.
Today, Metropolis has issued a clarification to exchanges on the report, stating that it continuously explores strategic options/investment opportunities.
It also added that the promoters and the management team remain committed to operate the firm with highest standards in medical science and that the promoters have 'no intention to exit the business'.
The relative strength index of the stock is 29, suggesting it may be oversold.
Source: Exchange filing, The Economic Times, Bloomberg
Adani Group, France’s TotalEnergies Enter Partnership To Create The “World’s Largest Green Hydrogen Ecosystem.”
TotalEnergies will acquire a 25% minority interest in Adani New Industries from Adani Enterprises.
Adani New Industries to invest over $50 billion over the next 10 years in green hydrogen and associated ecosystem.
In the initial phase, Adani will develop green hydrogen production capacity of 1 million ton per annum before 2030.
Adani New Industries aims to be the largest fully integrated green hydrogen player in the world, with a presence from the manufacturing of renewables and green hydrogen equipment to downstream facilities.
Source: Exchange filing
Shares of Adani Enterprises rose over 9.3%, the most in a year since June 18, 2021, at the open before trimming the gains.
Trading volume is more than thrice the 30-day average.
Source: Bloomberg
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.
RBL Bank: Do Not Foresee Any Asset Quality Challenges
RBL Bank says that linking R Subramaniakumar's appointment with asset quality challenges at the bank is speculative
Reiterate that such speculation is baseless and unfounded and purely speculative in nature.
The bank is well provided and does not foresee any asset quality challenges.
Source: RBL Bank statement
Dynamatic Technologies Gains On Contract To Make Escape Hatch Door For Airbus A220 Aircraft
Shares of Dynamatic Technologies jumped over 9%, the most in seven sessions, in a volatile market.
The Bengaluru-based hydraulic gear pumps and valves maker won a contract to manufacture Escape Hatch Door for Airbus A220 aircraft.
The contract has been place by Stelia Aeronautique Canada, a subsidiary of Airbus Atlantic SAS. The company has not disclosed the value of the contract yet.
Trading volume is more than 45 times the 30-day average.
Source: Exchange Filing, Bloomberg
Bajaj Finance Slides To 52-Week Low; Stock Down 10% In Four Days
Shares of Bajaj Finance fell nearly 1.5% to 52-week low of Rs 5,284.2 apiece.
The stock has lost 10% over the last four days, including 5.5% loss on Monday.
The company announced a 20bps hike in fixed deposit rates on Monday.
Trading volume is nearly twice the 30-day average. The relative strength index is at 26, suggesting that the stock may be oversold.
Of the 29 analysts tracking the company, 18 maintain 'buy', seven suggest 'hold' and four recommend 'sell'. The return potential of the stock is 52%.
Source: Exchange filing, Bloomberg
Note: The header in the graph has been updated.
Opening Bell: Sensex, Nifty Open Lower; Banks, I.T. Stocks Decline
India's stock benchmarks opened lower, dragged by losses in information technology and banking stocks amid fall in global equities after a weak close on Wall Street on Monday.
The S&P BSE Sensex fell 0.24% to 52,720.13. The NSE Nifty 50 declined by similar magnitude to 15,736.45. Today 28 of the Nifty 50 stocks rose, 22 fell.
The broader indices outperformed their larger peers, with S&P BSE MidCap and SmallCap gaining 0.5% each, respectively. Fourteen of the 19 sectoral indices compiled by BSE Ltd advanced with Telecom index gaining over 1.25%. On the flipside, the Information Technology gauge fell 0.5%.
The market breadth is skewed in the favour of bulls. About 1,469 stocks gained, 786 fell and 90 remained unchanged
10-Year Bond Yield Rises To Three-Year High
Yield on the 10-year bond added 1bps to 7.62%, the highest since 2019.
Source: Bloomberg
Rupee Opens Little Changed Against Dollar
Indian currency opened at 78.02 against the dollar. The rupee fell to record low 78.28 on Monday.
Source: Bloomberg
In Focus: RIL, Metropolis, Zomato, Zydus Life
Reliance Industries: Firm wins IPL cricket streaming rights in a bidding war.
Metropolis: Says continuously exploring strategic options.
Zomato: Reinstated underperform at Macquarie.
Zydus Life: Offers to buy back Rs 750 crore of shares, stock raised to 'buy' at KR Choksey, price target set at Rs 445 apiece.
Source: Exchange filing, Bloomberg
Bitcoin Tumbles As Crypto Currency Sell Off Intensifies
Bitcoin sheds over 10% to hover around $21,000, as crypto selloff intensifies.
Several other cryptocurrency tokens ranging from Ether to Avalanche incurred losses.
Source: Bloomberg
Equity Markets across are selling to pay for the losses incurred under a sharp fall in value of cryptos and commodities. Call it collateral damage. Cryptos are down by 15% overnight and are down average 70% from their All Time High ( ATH ) valuations of $ 2 trillion. Prices of Metal Commodities and Indian steel have also cracked overnight by Rs12,000-15,000/T. We seem to have entered into the state of capitulation in equity markets. Too much of derivatives and algo trading world over, causing sharp rise and fall in prices and that too quite often.Deven Choksey, MD, KRChoksey Holding
Trade Setup For Tuesday
Stocks To Watch
Torrent Power: The company has completed acquisition of 50 MW Solar Power Plant in the state of Telangana with enterprise value of Rs 416 crore. Long-term power purchase agreement for the project is with Northern Power Distribution Company of Telangana for a period of 25 years at a fixed tariff of 5.35 per kWh, with remaining useful life of 20 years.
Srei Equipment Finance: RBI-appointed administrator has found instances of fraud in the company. Total loan amount involved in the fraud stood at Rs 2,512 crore, while notional loss to the company stood at Rs 513.67 crore. The administrator has filed an application with Kolkata NCLT against 14 respondents involved.
WPIL: The company has received an order from the Government of West Bengal for execution of a turnkey project, comprising of commissioning of a clear water reservoir. The contract is valued at Rs 430.87 crore and the same will be completed over a period of 24 months.
Dynamatic Technologies: The company has won the contract to manufacture the Escape Hatch Door for Airbus A220 aircraft. The contract was placed by recently established Stella Aeronautique Canada Inc., a subsidiary of Airbus Atlantic SAS.
Bajaj Finance: The company increased fixed deposit rates by 20 basis points.
Sensex, Nifty Set To Fall; Torrent Power, SREI Equipment Finance, Dynamatic Tech In Focus
Stocks extended decline on Tuesday amid a surge in bond yields due to anticipation of sharper Federal Reserve interest-rate hikes to fight inflation.
Shares shed over 1% in Japan and South Korea and tumbled more than 5% in Australia. US futures steadied in the wake of a three-day rout in the S&P 500 of nearly 9%.
The Singapore-traded SGX Nifty -- an early barometer of India's benchmark Nifty 50 -- fell more than 0.5% to 15,689.5 points as of 6:30 a.m.
Traders now see about 200 basis points of tightening by the Fed’s September decision and the possibility of a 75 basis-point hike. Crude oil held above $120 a barrel.
The dollar hovered around a two-year high and the yen edged up from a 24-year low against the greenback. Bitcoin slid below $23,000, in part as a digital-asset lending platform paused operations.