The broader markets too performed in line with their larger peers. The S&P BSE MidCap rose 0.6% while the S&P BSE SmallCap advanced 0.4%. Fourteen of the 19 sectoral indices climbed, led by the S&P BSE Realty index, up 1.9%.
The market breadth was skewed in favour of the bulls. About 1,789 stocks advanced, 1,409 declined and 148 remained unchanged on the BSE.
Strong May core sector data, healthy traction in overall economic momentum in June indicate healthy corporate earnings for Q1, according to Binod Modi, Head Strategy at Reliance Securities. This is also evident from the GST collections. "Investors must focus on quality stocks with robust earnings visibility and margins of safety," Modi wrote in a note.
Oil prices have surged about 50% since the start of the year, fueling concerns over inflation as India and other economies try to recover from the coronavirus pandemic. Locally, companies begin reporting earnings for June quarter this week with Tata Consultancy Services scheduled to kick off the season on July 8.
Shares of Redington India jumped as much as 7.9% after the board of the company has approved bonus issue in the ratio of 1:1. The stock has gained for a sixth consecutive session,
The record date for reckoning the eligible shareholders entitled to be allotted bonus shares has been fixed as August 20. The bonus issue is subject to shareholders and other approvals.
The company said that the bonus equity shares will be issued out of free reserves and/or securities premium account and/or capital redemption reserve account of the company available as at March 31, 2021. It added that the bonus shares once allotted shall rank pari-passu in all respects and carry the same rights as the existing equity shares.
Redington also announced the revision of record date for final dividend of FY 2020-21. The company said, ''on account of the above bonus issue and in order to comply with the regulations, the record date of final dividend (including one–time special dividend) of FY2020-21 fixed as Aug. 4, 2021, is now advanced to July 19, 2021, by the board.''
Why Indian Paper Stocks Are Closing In On 52-Week Highs
Natco Pharma falls as much as 5.8%, in its biggest drop since Dec. 21, after an injunction filed by U.S. agricultural-sciences company FMC Corp against the Indian firm’s plan to produce insecticide Chlorantraniliprole was accepted by the court.
Trading vol. > 1.1x 3-month full-day avg
India’s Delhi High Court allowed the injunction application filed by FMC today, Natco Pharma said in an exchange filing; the co. also said it will review options after the full judgment in the matter will be available
NOTE: In February, Natco said its Indian registration for the Chlorantraniliprole product was successful and the company would be the first indigenous manufacturer of the product
Natco said sales of Chlorantraniliprole or CTPR containing products in India are estimated to be 20b rupees; the company also informed India’s exchanges about its pending litigation against FMC related to use of CTPR
CTPR is an active ingredient used in products commercialized by FMC under brands Coragen & Ferterra, Natco said in Feb. filing
To read what analysts had to say, click here
Rupee Seen On The Backfoot As Oil Prices Rise
Motilal Oswal Financial Services Ltd. rose 6.2%. Trading volume was 11 times the average for this time of day.
The stock was the best performer among its peers.
Trading volume was 863,147 shares, 11 times the 20-day average of 79,185 shares for this time of day.
The relative strength index on the stock was above 70, indicating it may be overbought.
Analysts have four buy, no hold, and no sell recommendations on the stock.
The price target of Rs 833.33 represents a 10% decrease from the last price
Eight of the 19 sectoral indices compiled by the BSE Ltd. climbed led by a gauge of real estate companies. The S&P BSE Energy index was the worst performer, down 1%.
Inflation Shock Has Indian Insurer Expecting Hawkish RBI Pivot
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