Market HIGHLIGHTS: Sensex falls 314 pts from day’s high, Nifty ends below 15,800; RIL, ICICI Bank top draggers

BSE Sensex fell 271 points or 0.51 per cent to 52,502, while the broader Nifty 50 index declined 102 points or 0.64 per cent to settle at 15,767

Infosys share price surged as much as 1.12 per cent to hit a record high of Rs 1,489.40 apiece intraday, in an otherwise weak market. Infosys has crossed its previous high of Rs 1,480, touched on April 12 this year. The stock has gained for the eight consecutive sessions, rising 7.2 per cent.

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Consistent revenues & profit margins with an efficient record of being amongst the top 10 automotive component manufacturers make Sona Comstar a decent buy. However, given its high PE ratio of more than 41X and a correction expected in majority of the stocks, subscribed investors should trade only for listing gains. New investors should wait for atleast a 10-15% correction to enter this stock post listing. AR Ramachandran, Co-founder & Trainer, Tips2Trades

Company is bringing the issue at EV/EBIDTA of 17x on FY21 basis at price band of 815-825 per share. We like fundamentals of KIMS as it has unique business model with quite strong balance sheet. KIMS being the regional leader in the organ transplantation specialty & number 1 in Nephrology treatments in Andhra Pradesh along with Neurosurgery & Poly trauma treatments in state has posted strong EBIDTA margins. KIMS’ successful strategy of acquiring land in advance and construct building on its own to reduce costs and acquiring land on long term, low cost terms to avoid high rental costs has helped in having one of the lowest operating costs that depicts the strong management of company. Hence looking strong fundamentals of company , we recommend “Subscribe” on issue. Hem Securities

Sona Comstar IPO has been fully subscribed. QIBs subscribed 1.4 times of their reserved portion, NIIs 10 per cent and retail investors 1.38 times

As per a study by Emkay Wealth Management, the Brent crude oil prices may test higher levels of USD 78-80, and the support may be at USD 68-70 level. But the rise maybe, to a certain extent, limited by the strength in the US Dollar against other currency majors. One major factor that dominated oil markets is the possibility of a nuclear deal between the US and Iran, and also better relations between the two countries, based on the reported talks between the two parties. This would mean that the supply from Iran will be in the markets as soon as such a pact is reached. Therefore, the prices should naturally come down. But there is a strong view that oil prices may start going up, anticipating this supply in the near future.

Dodla Dairy IPO: The vast improvement in performance reflects in the company’s valuation too. At the higher end of the price band, Dodla Dairy is priced at 51 times FY20 earnings, while just 16.4 times Apr-Dec 20 EPS (annualized). In comparison, the Hatsun Agro quotes at a PE of 180.4 times and 82.2 times of its FY20/FY21 EPS. Heritage Foods quotes at 13.4 times of its FY21 EPS. The valuations are at par with Heritage Food while at a steep discount to Hatsun Agro. Given its positioning in the industry, the asking price seems to be reasonable. Given factors such as market leadership, strong growth outlook, improved efficiencies due to better value-added mix, healthy margins, debt-free status, and robust return ratios, we remain positive on the prospects of the issue from a long-term perspective," INDmoney said in a report.

Shyam Metalics IPO has been subscribed 18.27 times so far on day 3. QIB 10.72 times, NII 52.23 times, Retail 8.53 times and Employee 1.09 times

Sona Comstar IPO subscribed 0.81 times at 1.00 pm on day 3. Overall, the IPO has been subscribed 81 per cent, QIB 1.04 times, NII 0.07 times and Retail 1.24 times

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Nifty 50 may continue to scale new milestones over the next 12 months, taking the index to a record high of 17,250 by June 2022, said domestic brokerage and research firm ICICI Securities in a report. Analysts at ICICI Securities believe that improving profits of India Inc. along with a conducive environment for capital expenditure cycle would help the benchmark index grow and reach fresh all-time highs. So far, since the March 2020 fall, Nifty 50 has more than doubled to reach an all-time high of 15,901 this week.

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The fear gauge of domestic markets, India VIX, has gained more than 3% today to breach the 15 levels once again. 

As per a study by Emkay Wealth Management, the Brent crude oil prices may test higher levels of USD 78-80, and the support may be at USD 68-70 level. But the rise may be, to a certain extent, limited by the strength in the US Dollar against other currency majors. One major factor that dominated oil markets is the possibility of a nuclear deal between the US and Iran, and also better relations between the two countries, based on the reported talks between the two parties. This would mean that the supply from Iran will be in the markets as soon as such a pact is reached. Therefore, the prices should naturally come down. But there is a strong view that oil prices may start going up, anticipating this supply in the near future.

~ Emkay Wealth Management

BSE Sensex down 286 points at 52,486; Nifty was down below 15,700

Taking cues from weak trading in other Asian markets, Indian equity benchmarks added losses in morning trade. Traders were cautious as Oxford Economics, a worldwide forecasting agency stated that a rise in retail inflation in May could prompt the RBI to reconsider its focus on growth concerns, but that a rate hike this year is still improbable. 15900 acted as a resistance and a correction was observed in the market in the first half.15650 will be the next support for the market if the market breaches the level of 15800. Technical factors do indicate any major correction in the market. Gaurav Garg, Head of Research, CapitalVia Global Research

Tata Motors share price may surge up to 15% in one year, helped by cyclical recovery in domestic and overseas markets, and its luxury unit Jaguar Land Rover’s focus on selling electric vehicles. Jaguar Land Rover has set the ball rolling to become a pure electric vehicle brand 2025 onwards. Motilal Oswal has a ‘buy’ rating on Tata Motors stock with a target price of Rs 405, implying a 15% upside from the current price of Rs 350. The stock has already surged 10% so far this month. Ace investor Rakesh Jhunjhunwala owns a 1.3% stake in Tata Motors, his second-largest stock holding after Titan.

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Jubilant FoodWorks share price surged 5 per cent to an all-time high of Rs 3,331.85 apiece in intraday on BSE, after the Domino’s Pizza and Dunkin’ Donuts chains operator posted over three-fold jump in its consolidated net profit in Q4 of FY21. The stock opened at Rs 3,225 and minutes after going into the trade surged to a record high. 

At the higher end of the price band, KIMS IPO is priced at a P/E of around 31.2 times FY21 earnings (post-issue). This seems to be reasonable, considering the company’s performance and the outlook going forward. Given factors such as good margins, healthy return ratios, lower debt (than peers), potential growth runway and attractive valuations, we remain positive on this issue. The outlook for KIMS seems to be favourable due to its USP of providing specialty healthcare services at an affordable price. Further, the foray into specialties such as heart & lung transplant and liver transplants should support margins going forward, INDmoney said in a report.

Gold prices were marginally up on Wednesday, taking cues from global markets, where investors awaited the outcome of the US Federal Reserve meeting. On Multi Commodity Exchange, gold August futures were trading Rs 36 up at Rs 48,460 per 10 gram, against the previous close of Rs 48,424.

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The index seems to be taking a breather this morning. It has resisted at the 15900 level yesterday but still seems poised to achieve 16000-16100. The current support is at 15700 and as long as that holds on a closing basis, traders can rest assured the trend continues to remain on the upside and any bout of selling or correction can be well utilized to accumulate long positions on the Nifty. Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

Krishna Institute of Medical Sciences initial public offering (IPO) opened for subscription today, with the firm looking to raise Rs 2,143 crore through a combination of fresh issue and an offer for sale (OFS) by existing shareholders. Krishna Institute of Medical Sciences (KIMS) is one of the leading healthcare groups in the states of Andhra Pradesh and Telangana, growing from a 200-bed hospital in the year 2000 to a chain of multi-speciality hospitals now. The IPO, after opening today, will remain available for investors to subscribe to till Friday evening. Ahead of the IPO, the company has raised Rs 956 crore from anchor investors.

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Soaring oil prices amid demand outlook optimism and the fading prospect of Iranian oil returning to the market,  led oil importers to rush to cover their USDINR positions ahead of today's Fed meeting. So far, the rupee had been supported by the inflows pertaining to IPO’s that flowed until yesterday. If inflows get standstill, we might see the rupee tilting on the depreciation side in the upcoming time. All in all, the dollar is expected to rise as U.S. economic outperformance can continue to underpin the USDINR pair and we might see it moving close to 73.80-74.00 levels in the coming sessions if it sustains well above 73.20-30 zone convincingly. Amit Pabari, managing director, CR Forex Advisors

Barring Nifty Auto index, all the sectoral indices were trading in the green. Nifty Bank index was up 0.11 per cent and Nifty PSU Bank index was up over half a per cent

ONGC, Mahindra & Mahindra, Sun Pharma, Bajaj Finserv, HUL, Kotak Mahindra Bank were top Sensex gainers

Power Grid Corporation of India, Titan Company, Dr Reddy's Lab, Asian Paints, Bajaj Auto, RIL, Axis Bank were among top Sensex laggards

BSE Sensex was trading 90 points or 0.17 per cent down at 52,692, while the broader Nifty 50 index was ruling at 15,844, down 25 points

Indian benchmark Indices are expected to open on a cautious note on account of global cues and trends suggested by SGX Nifty. An across-the-board buying lifted benchmarks to new lifetime highs in yesterday’s session where the S&P BSE Sensex touched 52,869.5 levels while the Nifty50 index surpassed the 15,900-mark to quote at 15,902. Active Covid-19 cases stood just above 9 lakhs in India as the daily infection rate continued to ease in a country battling the world’s second worst outbreak which will help in continuing positive momentum in the market. FIIs were net buyers Rs634cr while DIIs were net sellers Rs649cr in yesterday’s session. Immediate support and resistance for Nifty 50 are 15,800 and 16000 respectively. US Fed meeting commentary is going to be the key factor deciding the direction of the market in the short term. Mohit Nigam, Head, PMS - Hem Securities

The stock-specific activity is increasing day by day, which is an indication of a “cautiously optimistic” approach from the traders. As the market is closed above the level of 15850/52750 we would see the levels 16050/53300 in the near term. Supports for the market exists at 15800/52600 and at 15750/52300. The strategy should be to buy indices only on plunges. 

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BSE-listed companies such as RITES, Asahi India Glass, CESC, Commercial Syn Bags, DIC India, Kakatiya Cement Sugar, Manaksia Steels, Nureca, Pritika Auto Industries, Somany Ceramics, and Welspun Enterprises, will announce their January-March quarter earnings on June 16.

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Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Hyderabad: Prices of Petrol and Diesel have hiked by oil marketing companies once again on Wednesday, after a brief one day pause. Petrol price in Delhi today stands at Rs 96.66 per litre, an increase of 25 paise since yesterday. Diesel in the capital city is retailing at Rs 87.28 per litre today, up 13 paise. Rates have been hiked 25 times since May 4. The price of petrol in Delhi has increased by Rs 5.97, while diesel price has surged Rs 6.38 per litre since the rate revision began. Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices on a daily basis in line with benchmark international price and foreign exchange rates.

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The nation’s economy, grappling with the 2nd wave of Covid-19, may not see a revival as swift as that seen after the 1st wave, says investment advisor Sandip Sabharwal. In an interview with Surbhi Jain of Financial Express Online, Sandip Sabharwal said that the market valuations are not expensive if 35 per cent earnings growth is for real. 

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Maximum Call open interest was seen at 16000 strike, followed by 15,900 strike. Maximum Put open interest was seen at 15000 strike, followed by 15800 strike, 

Domestic equity benchmark indices scaled fresh all-time highs on Tuesday, as bulls continued to dominate the market movement. S&P BSE Sensex ended the day at 52,773 while the 50-stock NSE Nifty closed the day at 15,869. On Wednesday morning, SGX Nifty was down in the red, hinting at some turbulence for domestic equities. Global cues were mixed during the early hours of trade on Wednesday. “Further direction of the domestic markets would depend on the monsoon, opening up of the economy in a phased manner and the pace of vaccination going forward,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

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The market is trading at the highest point of the current up move and we are witnessing mixed reaction in the market. The stock-specific activity is increasing day by day, which is an indication of a "cautiously optimistic" approach from the traders. As the market has closed above the level of 15850/52750, we could see indices breaching the levels of 16050/53300 in the near term. Supports for the market exists at 15800/52600 and at 15750/52300. The strategy should be to buy indices only on dips. The Bank-Nifty is heading towards the level of 35700 and corporate-facing banks should do well. Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd