RIL, ICICI Bank Help Sensex, Nifty Extend Gains For Third Session

Moody's Investors Service said in a statement today that it has placed Yes Bank’s foreign currency issuer rating of Ba1 under review for downgrade.

“The review for downgrade takes into account Moody's expectation that the ongoing liquidity pressures on Indian finance companies will negatively impact the credit profile of Yes Bank, given the bank's sizeable exposure to weaker companies in the sector,” it said.

According to Moody’s Investors Service:

• Expect significant pressure on Yes Bank's asset quality and therefore profitability and capital position.
• Nevertheless, the impact will be somewhat cushioned by the bank's proactive loan loss provisioning for anticipated stress.

Zensar Technologies

• Stock rose as much as 7.8 percent to Rs 271.35
• Trading volume was more than 12 times its 20-day average.

Gujarat Pipavav Port

• Stock fell as much as 3.1 percent to Rs 81.
• Trading volume was 19 times its 20-day average.

KPIT Technologies

• Stock rose as much as 5 percent to Rs 99.
• Trading volume was more than quadruple its 20-day average.

Indian equity benchmarks are set to end higher for the third consecutive trading session.

The S&P BSE Sensex rose 160 points or 0.41 percent to 39,949 as of 3 P.M. and the NSE Nifty 50 traded near 11,965.

Thirty Two out of 50 stocks in the NSE Nifty 50 advanced, led by Zee Entertainment Enterprise’s 3.3 percent gain. On the flipside, Indiabulls Housing Finance was the top loser, down 8.2 percent.

Sterlite Technologies

• Stock rose as much as 12 percent to Rs 194.40.
• Twin Star Overseas Ltd., which is owned by Anil Agarwal’s Volcan Investments Cyprus Ltd., released entire pledge on 20.74 crore shares, worth 52.01 percent equity share capital.

Bharat Dynamics

• Stock rose as much as 6.2 percent to Rs 303.80.
• The company signed a contract worth Rs 1187.8 crore for the supply of heavy weight torpedoes, according to its stock exchange filing. The contract is to be executed in the next 42 months.

Jain Irrigation

• Stock halts six-day losing streak, its longest in over a month.
• Shares rose 11 percent to Rs 41.45.
• The company is said to divest its pipes business, Dalal Street Investment Journal reported quoting the company’s top management official.

CG Power and Industrial Solutions

• Stock rose as much as 1.9 percent to Rs 32.95.
• Trading volume was double its 20-day average.

Indian equity benchmark NSE Nifty 50 is expected to touch 12,750 level in the medium term.

That's according to Sanjeev Zarbade, vice president-PCG Research at Kotak Securities.

The 50-stock index is not expected to touch new levels in the medium term due to expensive valuations, Zarbade told BloombergQuint in an interaction. “The Nifty is trading at 19.3 times estimated forward earnings per share and that leaved limited room for it to scale up from the current levels.”

Going forward, Monsoons, G-20 Meeting, Federal Reserve Meeting and the Union Budget will be the factors that could influence investors sentiment, he said.

Etihad Airways PJSC and Hinduja Group have decided to halt talks for a potential investment in Jet Airways (India) Ltd. till clarity emerges on whether insolvency proceedings against the airline would be initiated, a senior official at State Bank of India told BloombergQuint on the condition of anonymity. (Read the full story here).

Shares of jet Airways fell 9.7 percent as of 1:40 P.M. to Rs 112.70. The stock fell 14.8 percent intraday.

Click here to read about the sectors where Dalton Capital is betting on.

Shares of the telecom operator snapped fluctuated between gains and losses to trade 0.37 percent higher at Rs 364.80.

The company will pay the Tanzanian government 60 billion Shillings ($26.2 million) over a period of five years to settle an ownership dispute, according to its exchange notification. It will pay 1 billion Shillings every month to the government for sixty months starting April, Chairman Sunil Mittal said at a briefing in Tanzania’s Dar es Salaam.

Besides, Bharti Airtel will also pay the government a special divided at end of this year, Mittal said without mentioning the amount.

The stock rose 3.2 percent in the past five days and advanced 12 percent in the past 30 days, according to Bloomberg data.

Tata Motors-owned Jaguar Land Rover sales fell 12.2 percent on a yearly basis to 42,370 units in May, according to its stock exchange filing.

Key sales highlights (YoY)

• Jaguar retail sales fell 9.4 percent to 13,142 units.
• Land Rover retail sales fell 13.5 percent to 29,228 units.
• JLR China sales retail fell 26.4 percent, overseas sales down 18.4 percent.
• North America retail sales fell 1.5 percent.
• U.K sales down 6.7 percent
• Europe sales decline 9.6 percent.

Here are the key highlights from the conference call:

• Strong retail shareholding base remains un-eroded.
• Have made aggregate debt servicing payments of over Rs 35,000 crore in the last 14 months from April 2018 to May 2019.
• These comprise principal repayments of Rs 25,000 crore & interest payment of nearly Rs 11,000 crore.
• These payments have been made in the face of insurmountable odds & the most challenging conditions.
• During this entire period, lenders from all categories, have provided zero net additional liquidity to any entity.

Shares of the country’s largest pharmaceutical company fell as much as 4.5 percent to Rs 384.

Research firm Goldman Sachs downgraded its recommendation on the stock to ‘Sell’ from ‘Neutral’. The brokerage company also cut its price target to Rs 355 from Rs 437, indicating a potential downside of 11.7 percent from the last regular trade.

Here’s what Goldman Sachs had to say on Sun Pharma:

• Key businesses facing competitive threats during transitional phase.
• Soft start in specialty clouds earnings trajectory.
• Better entry points could be in store for investors.
• The stock traded 20 percent below the Bloomberg consensus one-year target price.

Nifty’s 11,900 put option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the weekly contract, which is set to expire Thursday fell 20.9 percent to Rs 38. Over 6.51 lakh shares were added to the open interest which stood at over 20.23 lakh shares.

June Futures

• Nifty futures closed at 11,933.8, premium of 11 points versus 30 points
• Bank Nifty futures closed at 31,044, premium of 10.7 points versus 48 points

Options

• Nifty PCR at 1.36 versus 1.32 (across all series)

Nifty Weekly Expiry June 13

• Max OI on call side at 12,000 (22 lakh shares)
• Max OI on put side at 11,800 (14.2 lakh shares)
• OI addition seen at 11,900P (+5.9 lakh shares), 11,850P (+3 lakh shares)
• OI shedding seen at 11,800C (-2.2 lakh shares), 11,850C (2 lakh shares)

Nifty Monthly Expiry June 27

• Max OI on call side at 12,500 (27 lakh shares)
• Max OI on put side at 11,500 (28.9 lakh shares)
• Max OI addition seen at 11,500 (+1.1 lakh shares), 11,800P (+1.1 lakh shares)

Nomura on HDFC

• Downgraded to ‘Neutral’ from ‘Buy’; hiked price target to Rs 2,300 from Rs 2,000.
• Resilient business model to weather current liquidity crisis.
• Rate cycle becoming favourable as well; part of gain to fund higher liquidity levels.
• But valuations near fair value now.

Goldman Sachs on Sun Pharma

• Downgraded to ‘Sell’ from ‘Neutral’; cut price target to Rs 355 from Rs 437.
• Key businesses facing competitive threats during transitionary phase.
• Soft start in specialty clouds earnings trajectory.
• Better entry points could be in store for investors.

HSBC on Indian Metals

• Commodity and metal stocks have been severely hurt by ongoing trade tensions.
• More is at stake as current economic and trade environment is weaker.
• Further escalation likely to aggravate the situation.
• Resolution of tensions appears key catalyst for realisation of upside.
• Hindalco: Maintained ‘Buy’; cut price target to Rs 270 from Rs 300.
• Hindustan Zinc: Maintained ‘Hold’; cut price target to Rs 240 from Rs 250.
• Vedanta: Maintained ‘Hold’; cut price target to Rs 190 from Rs 205.
• NALCO: Maintained ‘Buy’ with a price target of Rs 65.

Jefferies on Voltas

• Maintained ‘Buy’ with a price target of Rs 700
• 2019-20 starts off on a good note.
• Believe Voltas missed some post-election upside given weak March quarter engineering margins.
• Recovery in the first quarter coupled with strong AC growth should drive further upside.

• Savita Oil Technologies ex-date for share buyback
• Syngene International ex-date for bonus issue 1:1
• Mcleod Russel to move into ASM Framework
• Uniply Industries Eros International Media IL&FS Investment Managers to move into short term ASM Framework
• Navkar Corporation, Bajaj Healthcare Roto Pumps to move out of short term ASM Framework
• Kridhan Infra price band revised to 5 percent

Vaibhav Global

• Motilal Oswal MF acquired 16.6 lakh shares or 5.09 percent equity at Rs 770 each.
• Promoters Nirmal Kumar Bardiya, Brett Plastics, Deepti Agrawal and Rahim Ullah sold 16.6 lakh shares or 5.09 percent equity at Rs 770 each.

• Sterlite Technologies: Vedanta based promoter Twin Star Overseas released entire pledge of 20.74 crore shares (52.01 percent) on June 10. Company said that the pledge was released as per terms of facility agreement with lenders. Pledge was a collateral for loan taken by Volcano Investment Cyprus.
• Indiabulls Housing Finance: Refuted the allegation of siphoning Rs 98,000-crore, terming it as “bizarre” and made by a “racket of blackmailers”. (More details here)
• Dewan Housing Finance: Completed sale of entire stake (9.15 percent) in Aadhaar Housing Finance to Blackstone’s arm.
• Bharti Airtel will pay the Tanzanian government 60 billion Shillings ($26.2 million) over a period of five years to settle an ownership dispute. The company will pay to the government 1 billion Shillings every month for sixty months starting April, Chairman Sunil Mittal said at a briefing in Tanzania’s Dar es Salaam. The company will also pay the government a special divided at end of this year, Mittal said without mentioning the amount.
• Reliance Industries: Plans to shut down one of crude distillation units and coker unit in Jamnagar for routine maintenance and inspection activities for three-to-four weeks from June 20. Other crude distillation and secondary processing units are expected to operate normally during this period.
• J&K Bank said that the state government has ordered probe after getting complaints.
• Petronet LNG: Facilities related to expansion of Dahej LNG Terminal from 15 to 17.5 MMTPA has been commissioned and under stabilisation, with additional gas send-out already commencing.
• Yes Bank: Ajai Kumar resigned from the post of Non-Executive Director with effect from June 9 due to personal reasons.
• Parag Milk Foods launched premium milk brand in Singapore. Milk to be sold under brand name of Pride of Cows.
• Fortis Healthcare: Yes Bank said that it has sold 1.51 crore shares (2 percent) in various tranches since December 2018. Thereby reducing stake by 2 percent from 8.41 percent to 6.41 percent, as per exchanges.
• Eveready Industries: India Ratings and Research has downgraded company’s pong term credit rating to IND BBB from IND A+ and maintained rating watch to negative. Reason for downgrade is due to increased leverage and weakened liquidity.
• IL&FS Engineering Services entered into a settlement agreement with NHAI against Arbitration Award. Company receives claim of Rs 150.15 crore.
• IDBI Bank entered into a Standalone Health Insurance tie-up with Max Bupa with effect from June 1.
• Muthoot Capital Services completed assignment of Rs 84.95 crore on June 7. The company said that it has raised Rs 196.9 crore through securitisation with this transaction in the current financial year.
• Wipro launched digital solutions for global airlines for crew management.
• India Cements: Aditya Birla Sun Life MF sold 67.66 lakh shares on June 6, reducing its stake from 7.31 percent to 5.11 percent.
• SH Kelkar fixed June 20 as record date for share buyback.
• Tata Sponge Iron: Board to meet on June 13 to consider the terms of rights issue.
• Yes Bank and Fortis Healthcare: Yes Bank sold 1.51 crore shares or 2 percent equity in Fortis Healthcare on June 7.
• Lupin: Sunil Makharia, president (finance), has been appointed as the interim CFO. The board is in the process of selecting the next Chief Financial Officer.
• Talwalkar Better Value Fitness: Company-backed startup Sarva Yoga raised over $4 million from global investors at a valuation of $20 million.
• IndusInd Bank and Bharat Financial: Received NCLT approval for merger.

London Metal Exchange

• Copper ended 1.3 percent lower.
• Zinc ended lower for the second day, down 0.32 percent.
• Aluminium ended 0.62 percent higher.
• Nickel halted its longest losing streak in over six months, closed 0.25 percent higher.
• Lead resumed gains after a one-day blip, closed 3.1 percent higher.
• Tin ended 0.08 percent higher.