Stock Market Today: Sensex, Nifty End Volatile Day Lower As Kotak, ICICI Bank, Airtel Drag
Sensex closed down 194 points or 0.31% at 62,428.54 while Nifty was lower 47 points or 0.25% at 18,487.75.
KEY HIGHLIGHTS
Yield On The 10-Year Flat
The yield on the 10-year bond closed 1 basis point lower at 6.98% on Thursday.
It closed at 6.99% on Wednesday.
Source: Bloomberg
Indian Rupee Strengthens Against The U.S. Dollar
The local currency appreciated by about 31 paise to close at Rs 82.41 against the U.S. dollar on Thursday.
The rupee closed at 82.73 on Wednesday.
Source: Bloomberg
Sensex, Nifty Decline For The Second Consecutive Day: Market wrap
Indian equity benchmarks swung between gains and losses through the day to end lower on Thursday. While private banks and non-banking financial companies declined realty and pharma were the top sectoral gainers. Kotak Bank, Airtel, ICICI Bank dragged the headlined indices, while TCS, HUL, HDFC Led.
European stocks climbed after three days of declines, while US futures fluctuated after the House passed a deal to avert a US default and Federal Reserve officials hinted at a pause in interest-rate hikes.
Miners and media companies led gains in the Stoxx Europe 600 index. Remy Cointreau SA shares jumped after the French distiller’s operating income beat estimates. Adnoc Logistics & Services, the maritime logistics unit of Abu Dhabi’s main energy company, soared as much as 52% on its debut after a hugely oversubscribed initial public offering.
The advance in European stocks echoed a move higher in Asia, where markets got an initial boost from some encouraging economic data out of China.
Passage of the debt-ceiling deal struck by House Speaker Kevin McCarthy and President Joe Biden means the bill will be sent to the Senate days before the June 5 default deadline.
The S&P BSE Sensex Index closed down 194 points or 0.31% at 62,428.54 while the NSE Nifty 50 Index was lower 47 points or 0.25% at 18,487.75.
Kotak Mahindra Bank Ltd., ICICI Bank Ltd., Bharti Airtel Ltd., ITC Ltd., and Coal India Ltd. were negatively adding to the change in the Nifty 50 Index.
Whereas, TCS Ltd., Hindustan Unilever Ltd., Axis Bank Ltd., HDFC Ltd., and Apollo Hospitals Enterprise Ltd. were positively contributing to the change.
The broader markets were ended higher; the S&P BSE MidCap Index was up 0.11%, whereas S&P BSE SmallCap Index was higher by 0.61%.
Eleven out of the 20 sectors compiled by BSE advanced, while nine indices declined with S&P Bankex declining the most.
The market breadth was skewed in the favour of the buyers. About 2,080 stocks rose 1,454 declined, and 127 remained unchanged on the BSE.
Atul Auto Shares Fall As May Sales Decline
Shares Atul Auto Ltd. fell the most in four weeks after its sales declined by 38.63% to 1,101 units in May.
The stock fell 5.43% to Rs 338.7 apiece, as of 3:07 p.m., in trade on Thursday compared to 0.20% decline in the benchmark, NSE Nifty 50 Index.
The scrip fell as much as 6.42% intraday, the most in over four weeks since May 2, 2023. Total traded volume stood at 1.5 times its 30-day average. The relative strength index was at 37.5.
Out of the three analysts tracking the company, 33 maintain a 'buy' rating, three recommend a 'hold' and two suggest to 'sell' the stock, as per the Bloomberg data.
The average calculated from the 12-month price target given by analysts implies a potential upside of 21.7%.
Source: Bloomberg, Exchange filing
Reliance Shares Gain As S&P Affirms 'BBB+' Ratings On Resilient Operations; Stable Outlook
Shares of Reliance Industries Ltd. were up in trade as S&P Global Ratings maintained a stable outlook with a 'BBB+' rating on the company.
Company's operating performance is likely to remain resilient over the next two years, as per S&P Global Ratings. Reliance's growing presence in the digital and retail segments will temper softer earnings in the energy business, it added.
The rating agency could lower its outlook if its capital expenditure, including acquisitions in digital or retail businesses, is higher than it expects. "We believe RIL's expansion plans for the period are manageable. Capex will remain elevated, but lower than the levels of fiscal 2023. We believe the company's leverage will remain at a level commensurate with the current rating," the report said.
S&P Global Ratings also affirmed the 'BBB+' rating on the company's senior unsecured debt. Despite elevated investments over the next 24 months, the stable rating outlook indicates that the company's cash flows will help preserve its financial profile
The agency plans on raising its outlook on the conglomerate if it demonstrates a track record of conservative financial policy, like debt-to-EBITDA below 2x. A higher rating could require the digital and retail segments' competitiveness to further strengthen.
Shares of Reliance Industries Ltd. gained 0.03% to Rs 2,470.65 apiece, as of 2:23 p.m., in trade on Thursday compared to 0.08% decline in the benchmark, NSE Nifty 50 Index.
The scrip gained 0.61% intraday. Total traded volume stood at 1.5 times its 30-day average. The relative strength index was at 55.
Out of the 38 analysts tracking the company, 33 maintain a 'buy' rating, three recommend a 'hold' and two suggest to 'sell' the stock, as per the Bloomberg data.
The average calculated from the 12-month price target given by analysts implies a potential upside of 13.7%.
Source: Bloomberg, Exchange filing
