Traders' Diary: Nifty sees immediate support at 9,865 level
This was the best run for the benchmark indices in seven months.
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Uday Kotak sells 2.83% stake in Kotak Mahindra Bank for Rs 6,944 crore
Billionaire banker Uday Kotak on Tuesday sold 2.83 per cent of the promoter group's holding in private sector lender Kotak Mahindra Bank for Rs 6,944 crore. The share sale, executed through open market trades, will help Kotak comply with the RBI's stake reduction mandate as the promoter group stake will go down to 26.10 per cent, according to an exchange filing.
YES Bank takes first step to share sale
Private sector Yes Bank has hired six investment banks in the first step to shore up its capital position through a share sale. The bank is looking to raise about Rs 10,000 crore by selling shares either through a rights issue, qualified institutional placement (QIP) or a follow on public offer (FPO) depending on market conditons, two people involved in the issue said.
Nifty extended its winning run into the fifth consecutive session and seems to be inching towards the psychologically important 10,000 mark. Analysts said the rally is expected to continue with the index getting support near the 9,900-9,800 zone.
Steel players' operating profit to decline 20-30% in FY21: India Ratings
As construction activities were impacted due to the extended lockdown, onset of monsoon and mass migration of labourers, operating profit or EBITDA of steel producers is expected to decline by 20-30 per cent in the current fiscal due to lower demand and price realisation, India Ratings (IndRa) has said.
RIL rights issue oversubscription reaches 129.8% with one day to go
Reliance Industries Ltd's Rs 53,124 crore rights issue, which has already been oversubscribed, on Tuesday received further bids for 8.8 crore, taking the subscription to nearly 130 per cent, according to stock exchange data. The issue subscription data on stock exchanges showed total bids received at 54.9 crore, overshooting the 42.26 crore shares on offer by 29.8 per cent.
Just Dial, Husys Consulting and other bulk deals
Here’s who bought and sold what in some of the key bulk deals of the day. Choice Equity Broking sold 12,000 shares of Husys Consulting at Rs 26.69 per share. BNP Paribas Arbitrage bought 3,57,000 shares of Just Dial at Rs 407.44 per share.
Nifty Smallcap index continued their stupendous run, rising for the sixth session, outperforming its peers. The index added 2.36 per cent led by 6-10 per cent gains in Arvind Fashions, Aster DM, NCC, Aegis Chemicals and ITI. In comparison, Nifty Midcap advanced 1.36 per cent, Nifty500 1.46 per cent and Nifty50 1.56 per cent.
Dow Jones inches higher at open on recovery optimism
US stocks opened higher on Tuesday as optimism around reopening businesses overshadowed fears of more disruptions from protests in the country over the death of a black man while in police custody. The Dow Jones Industrial Average rose 107.50 points, or 0.42 per cent, at the open to 25,582.52.
Sebi allows Ravichandran to subscribe shares in RIL rights issue
Regulator Sebi on Tuesday allowed N Ravichandran, who was facing capital markets ban, to subscribe shares in the ongoing rights issue of Reliance Industries Ltd (RIL). However, he would not be permitted to subscribe to shares renounced by any other shareholder of RIL in the rights issue, the regulator said in an order.
Moody's downgrades ratings of 8 firms, 3 banks
A day after India's sovereign rating downgraded, Moody's Investors Service on Tuesday cut ratings of eight non-financial companies, including Infosys, TCS, ONGC, and three banks SBI, HDFC Bank and EXIM. It also downgraded seven Indian infrastructure issuers, including NTPC, NHAI, GAIL and Adani Green Energy Restricted Group, by one notch. Issuer ratings of IRFC and HUDCO have also been lowered.
FMCG companies' revenue to contract by 3% in FY21: Crisil
Domestic ratings agency Crisil on Tuesday said it expects revenue of fast moving consumer goods sector (FMCG) companies to contract by 3 per cent in 2020-21 as against its earlier expectation of a 10 per cent growth. However, companies will adopt lower advertising spends and benefit from lower input prices, which will ensure that operating profit levels can be broadly maintained at up to 19 per cent, it said.
Asia's equity valuations climb to decade high in May
Asian stocks' valuations hit 10-year highs at end-May, tracking the rally in global shares, as businesses started to reopen across the region after shutting down to curb the spread of the coronavirus and as central banks' boosted stimulus measures.
"A sustainable move above the 10,000 mark may push the market towards the next upside hurdle of 10,500 in next 1-2 weeks. Inability to move above this level may trigger a downward correction, with the immediate support placed at 9,865 level," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
India's May gold imports fall 99% from a year ago to 1.4 tonnes: Source
India's gold imports in May plunged 99 per cent from a year earlier as international air travel was banned and jewellery shops were closed amid a nationwide lockdown to curb the spread of coronavirus, a government source said on Tuesday.
Britannia Q4 results: Profit rises 32% to Rs 381 crore; revenue up 2%
Britannia Industries on Tuesday posted a 32 per cent increase in net profit to Rs 381.16 crore for the fourth-quarter ended March, driven by cost efficiency programmes and moderate inflation in the prices of raw materials.
IndiGo Q4 results: Firm posts quarterly loss of Rs 873 crore as costs rise, pandemic hits
The airline posted a loss of Rs 873 crore for the quarter compared to a net profit of Rs 590 crore in the corresponding quarter last year. India’s biggest carrier IndiGo plunged to a loss for the Jan-Mar quarter from a profit a year earlier on a weak operating performance.
CLOSING BELL: Sensex takes winning run to 5th day, up 522 points; Nifty just short of 10,000-mark
Financials and RIL lead market rally
23 of 30 Sensex stocks end the day in the green
Index contributors: HDFC, Kotak Bank, HDFC Bank, ICICI Bank, RIL
Top Index gainers: Bajaj Fin (8.33%), Kotak Bank (7.56%), IndusInd Bank (6.74%)
Top Index losers: Maruti (1.74%), ITC (1.30%), NTPC (1.07%)
All sectoral indices except S&P BSE FMCG end the day in the green
S&P BSE REALTY biggest sectoral gainer, up 4.57%
S&P BSE Fast Moving Consumer Goods biggest sectoral loser, down 0.54%
Volume toppers: Kotak Bank, Bajaj Fin, SBI, IndusInd Bank, HDFC Bank
Hindustan Copper board approves increase in borrowing limit to Rs 1,350 crore
State-owned Hindustan Copper on Tuesday said its board has approved the increase in borrowing limit of the company from consortium and other banks from existing Rs 850 crore to Rs 1,350 crore. The approval was granted during the board meeting held on Monday, Hindustan Copper said in a filing to BSE. "The board of directors of Hindustan Copper... has inter alia considered and approved increase in borrowing limit of the company from consortium /other Banks from existing Rs 850 crore to Rs 1,350 crore by way of cash credit/working capital arrangements, etc," the PSU said.
Here are the top gainers and losers in the pharma space. Biocon surges 8%, Ajantha Pharma dips 5%
Price as on 02 Jun, 2020 03:01 PM, Click on company names for their live prices.
Trading hours for agri-commodities revised to 9 am-9 pm
India’s biggest weaknesses from sovereign ratings perspective relative to the peer group. That is how we look at India relative to peers. Unfortunately, what we have seen since then is despite many of these reforms and announcements being pushed forward, it had very little impact on the economy. It had very little impact on growth. Actually fiscal deficit targets continued to slip. In fact, the debt burden has gone up. It has risen instead of falling.
Top 10 gainers in afternoon session
Price as on 02 Jun, 2020 02:16 PM, Click on company names for their live prices.
India's Rating History
Sterling and Wilson Solar commissions its first Solar project in Oman
Sterling and Wilson Solar on Tuesday said it has commissioned its first 125-MW solar energy project in Oman. Sterling and Wilson Solar Limited (SWSL) has become the first Indian company to commission a solar photovoltaic (PV) project in this region, a company release said.
Strides Pharma gets USFDA nod for generic ointment to treat skin conditions
Price as on 02 Jun, 2020 12:49 PM, Click on company names for their live prices.
JUST IN: Sharekhan is launching a new discount broking company soon
Here are the top gainers in the tourism and hospitality sector. Chalet Hotels zooms 41%, IHC 11%
Price as on 02 Jun, 2020 12:31 PM, Click on company names for their live prices.
Do you think India’s rating downgrade by Moody's changes anything for you as an investor?
Need strong Indian entrpises that boost local supply chains; Atmanirbhar Bharat will be fully integrated with world economy: PM Modi
Getting growth back is not that difficult: Modi
Indian industry must capitalize on global faith in India
- PM Modi
Our reforms are well-planned, systematic and being taken to logical conclusion
- PM Modi
Intent, inclusion, investment, infrastructure and innovation must to push growth: PM Modi
India fared better than most countries during Covid-19: PM Modi
Have faith in Indian farmers, entrepreneurs and industry leaders
- Narendra Modi, PM of India
Govt taking difficult policy reforms; will take reforms to logical conclusion: PM
Getting economy back on track is one of the highest priority: PM Modi
We have left the the lockdown behind; we are now at Unlocking 1.0: PM Modi
We have to stabilise economic situation in India. We will definitely get our growth back
- Narendra Modi, Prime Minister of India
Bajaj Auto total sales plunge 70% in May
Total sales down 70% at 1,27,128 units
Total domestic sales down 83% at 40,074 units
Two-wheeler sales down 69% at 1,12,798 units
Commercial vehicles sales down 74% at 14,330 units
Total exports down 53% at 87,054 units
I-Sec maintains BUY call on Affle (India); target price: Rs 1,775 per share
"The company will be a key beneficiary of increased spend in mobile advertising (to increase at ~35% CAGR in 2019-25). Further, in a post Covid world, we expect a significant shift among consumers to adopt digital technology globally, which will drive long term revenues. In addition, the company’s unique business model, healthy PAT margins (above 19%) and RoIC of 26% makes Affle an attractive company. Hence, we have a BUY recommendation on the stock with a target price of | 1,775/share," said ICICI Securities.
S&P BSE Telecom gains 2%; Voda Idea up 3%, Airtel 2%. This is how the index stocks are performing
Shares of Kotak Mahindra Bank climbed 6 per cent in Tuesday's trade after promoter Uday Kotak said he would sell 2.83 per cent of his stake worth over Rs 6,800 crore in the private bank today. The price band for the share was fixed at Rs 1,215 to Rs 1,240 apiece, PTI reported. At the upper end, the offer price was at a discount of 0.7 per cent to Monday's closing price of Kotak Mahindra Bank shares on the NSE. When compared with the lower end, the discount was 2.7 per cent.
Power stocks rally; Tata Power surges 12%, Adani Power 8%. Here are the top sectoral gainers
Price as on 02 Jun, 2020 10:29 AM, Click on company names for their live prices.
YES Securities maintains BUY call on Sagar Cements with target price of Rs 476
"Given the current scenario, the company expects normalcy in operations from COVID related disruptions only after September 20. Accordingly, we have downgraded our volume/EBITDA estimates by 23.5%/22.2% and 13%/16.8% for FY21E and FY22E respectively. Further, we expect peak net debt for SGC at Rs 7.86 bn in FY22 and peak net debt/EBITDA of 3.7x in FY21. Currently SGC is trading at EV/EBITDA of ~5.4x and EV/te of $25 on FY22E. Assigning an EV/EBITDA multiple of 7x on FY22E, we have a target of Rs 476 (potential upside of 62%). We maintain our BUY rating on the stock," YES Securities said in a note.
Vodafone Idea, NCC, Tata Motors among most active stocks on NSE
Price as on 02 Jun, 2020 09:22 AM, Click on company names for their live prices.
OPENING BELL: Sensex shrugs off Moody's rating downgrade, rises 150 points; Nifty tops 9,850; Kotak Bank jumps 5%
Nifty futures on the Singapore Exchange traded 8.75 points, or 0.09 per cent lower at 9,830.75 in signs that Dalal Street was headed for a muted start on Tuesday.
Hang Seng, Shanghai Composite index inch up
Hong Kong stocks opened slightly higher Tuesday morning, extending the previous day's rally as investors took their lead from gains on Wall Street with buying buoyed by the easing of lockdowns around the world. The Hang Seng Index added 0.25 percent, or 59.72 points, to 23,792.24 . China's benchmark Shanghai Composite Index was flat, inching up 0.89 points, to 2,916.32.
Japan's Nikkei open higher despite US-China tensions
Tokyo stocks opened higher on Tuesday tracking rallies on Wall Street, shrugging off unrest in many US cities during anti-racism protests, and simmering US-China tensions. The benchmark Nikkei 225 index was up 0.37 percent or 81.05 points at 22,143.44 in early trade, while the broader Topix index advanced 0.41 percent or 6.38 points to 1,575.13.
Tech view: Nifty forms Shooting Star
The index formed a candle similar to a 'Shooting Star' on the daily chart, said Mazhar Mohammad of Chartviewindia.in, who believe such a formation may pave the way for profit booking, if Nifty50 slips below 9,706 level in the next session.
Oil prices hold ground ahead of OPEC+ meeting on extended output cuts
Oil prices rose in early trade on Tuesday, with traders waiting to see whether major crude producers agree to extend their huge output cuts to shore up prices at a meeting expected later this week. Brent crude futures rose 0.3%, or 12 cents, to $38.44 a barrel as of 0011 GMT. U.S. West Texas Intermediate (WTI) crude futures traded in a 38 cent range on either side of Monday's close, and last traded up 0.3%, or 9 cents, at $35.53 a barrel.
Asian stocks likely to see tepid start today
Asian stocks were set to come under pressure on Tuesday following a dip in Wall Street futures as U.S. President Donald Trump vowed to use force to end violent protests in American cities, souring a previously upbeat market mood. E-mini futures for the S&P 500 fell 0.38% and Japan's Nikkei 225 futures lost 0.34%. Australian S&P/ASX 200 futures rose 0.15% in early trading.
US stocks rise as investors eye economy reopening
US stocks reversed their earlier losses to finish with modest gains, as investors weighed the possibility of normalizing economic activities. On Monday, the Dow Jones Industrial Average rose 91.91 points, or 0.36 per cent, to 25,475.02. The S&P 500 increased 11.42 points, or 0.38 per cent, to 3,055.73. The Nasdaq Composite Index was up 62.18 points, or 0.66 per cent, to 9,552.05.
Rupee rises by 8 paise as govt starts to unlock economy
The rupee appreciated 8 paise to close at 75.54 against the US dollar on Monday on easing trade worries and optimism over the government's move to reopen the economy after a more than two-month lockdown. Forex traders said foreign fund inflows, weak American currency and positive domestic equities also boosted investor confidence.
Sensex, Nifty on Monday
After skyrocketing 1,250 points during the day, the 30-share BSE Sensex settled 879.42 points or 2.57 per cent higher at 33,303.52. The NSE Nifty surged 245.85 points or 2.57 per cent to finish at 9,826.15.
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