Market HIGHLIGHTS: Sensex ends near day’s low, Nifty below 15,750; RIL gains, SBI, ICICI Bank shares fall

Infosys share price has zoomed 13 per cent so far this month. The stock has more than doubled investors’ money in just one year, rising 117 per cent. IT bellwether’s board of directors meeting is scheduled on July 14, 2021, to consider and approve the audited consolidated financial results of the company for the quarter ending June 30, 2021. On Tuesday, Infosys share price was trading weak at Rs 1,569 apiece in intraday deals on BSE. In traded volume terms, in intraday so far, 97,000 shares have exchanged hands on BSE and a total of 43.50 lakh units on NSE.

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July Series started on a positive note, especially on the Banking front. The Banking stocks have provided a breakout above 35000 levels which is quite positive for the month of July. The Nifty has strong resistance in the zone of 15900-15950 levels which it needs to take off on a closing basis in order to gain further strength whereas it has strong support at 15700 in the near term whereas at 15500 in the medium term. The Nifty Bank has immediate support at 35000 levels and below that, at 34500 levels whereas it has resistance at 35500 levels and above that, it is likely to hit a lifetime high.

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Tata Motors share price has soared 7.5% in the last one month, extending its monstrous rally following the March 2020 sell-off. The stock had tanked 66% in March 2020, only to rally 425% since then as the bulls started asserting control on Dalal Street. On Tuesday Tata Motors shares were trading flat with a positive bias at Rs 343.85 apiece, up 84% so far this year, outperforming benchmark indices. Earlier this month on June 15, Tata Motors hit a fresh 52-week high of Rs 360.55 per share. Tata Motors has a market capitalization of Rs 1.13 lakh crore.

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BSE Sensex was trading 63 points or 0.12 per cent down at 52,672, while the Nifty 50 index fell below 15,800

The World Bank raised its forecast of China’s economic growth this year to 8.5 per cent from 8.1 per cent and said Tuesday that a full recovery requires progress in vaccinations against the coronavirus. The report adds to positive signs for China, the first major economy to rebound from the pandemic. Factory and consumer activity are back above pre-outbreak levels, though authorities have re-imposed travel controls in some areas to counter outbreaks of new variants of the virus

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IRCTC share price jumped as much as 2.3 per cent to Rs 2,125.65 apiece in intraday deals on BSE ahead of January-March quarter results. Indian Railway Catering and Tourism Corporation shares hit a new 52-week high of Rs 2,184.15 apiece earlier this month. Indian Railways has planned to resume special train services in view of the demand for train traveling among passengers on the back of decline in COVID-19 daily cases across the country. 

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Reliance Industries Ltd (RIL) share price rose on Tuesday, reversing the downward trend of the previous six trading sessions. RIL stock has underperformed the headline indices since the beginning of this calendar year, gaining only 5% against the 10-12% rallies in Sensex and Nifty. The stock failed to move higher after the much-awaited annual general meeting of the company, where RIL Chairman Mukesh Ambani announced a massive Rs 75,000 crore investment into the company’s new energy business. RIL stock was trading at Rs 2,093 on Tuesday, up 0.34%.

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The strongest headwind for the market now is the continuous FII selling (Rs 1659 cr in the cash market yesterday) which is logical in the context of the high valuations. With strong DII buying ( Rs 1277 cr in the cash market yesterday) and over-confident retail activity, FIIs are now in a position to sell aggressively without pulling the markets down significantly. Nifty 15900 level has become a strong resistance zone for the market now. Therefore, more action can be expected in the mid-small-cap space where there is not much FII activity. The package announced by the FM yesterday is more relief than stimulus. It relies more on guarantees to the banks rather than the government directly stimulating the economy through higher public expenditure. Raising the ECLGS limit from Rs 3 lakh crores to Rs 4.5 lakh crores is a nudge to banks to lend more on government guarantees. This can stimulate the economy without impacting the fisc in the short-term. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

IT company L&T Technology Services on Tuesday announced partnership with telecom gear maker Mavenir to deliver end-to-end 5G automation services. L&T Technology Services (LTTS) said its experience in the delivery of telecommunications engineering products and services and growing portfolio of ready-to-use 5G components played a crucial role in this agreement. 

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GR Infraprojects’ IPO will open for subscription next week on Wednesday, July 7, 2021. The public issue will entirely be offer-for-sale (OFS) of up to 1.15 crore equity shares by existing promoters and shareholders, and will close on July 9, 2021. The equity shares of Udaipur-based integrated road EPC are proposed to be listed on both BSE and NSE.

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Robust domestic macroeconomics could help NSE Nifty 50 scale 17,500 and take the S&P BSE Sensex to 58,300 as India’s economy recovers from the covid slump, said domestic brokerage firm ICICI Direct. “With the peak of the Covid resurgence behind us, increasing pace of vaccination domestically and calibrated state-specific unlocking underway, we expect economic activity to bounce back sharply in the remaining nine months of the financial year 2021-22,” the brokerage firm said in a report. Benchmark indices have already surged higher helped by strong corporate earnings. The target set for Nifty implies a 10% upside potential from current market levels.

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Gold prices were trading weak in India on Tuesday, as yellow metal in the global market eased on a firmer dollar. On Multi Commodity Exchange, gold August futures were trading Rs 76 or 0.16 per cent down at Rs 46,932 per 10 gram, as against the last close of Rs 47,008. Silver futures were ruling at Rs 68,937 per kg, down Rs 305 or 0.44 per cent, as compared to a previous close of Rs 69,233.

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On the flow side, FII seems booking their profit as indices retraced from an all-time-high in the recent days ahead of uncertainty on the COVID variant. This along with RBI’s unexpected move in their forex book towards month-end could call the volatility back in the USDINR pair. Overall, additional fiscal plan, stronger dollar demand and variant concern could pressurize on the Rupee in the near term. Broadly, we are expecting that it will be trading in the range of 73.50 to 74.50 in the near term before the above triggers take it towards 75.00-75.20 levels over the medium term. Amit Pabari, managing director, CR Forex Advisors

The much-awaited fiscal package was unveiled from Nirmala Sitharaman on Monday worth Rs 6.28-trillion focuses on healthcare, tourism, and small borrowers to keep the enterprises afloat in the aftermath of COVID 2.0 by extending the loan guarantee scheme and setting a cap to the borrowing cost. This is expected to provide a boost to the different sectors to stand on their own foot but from a government’s point of view, this will be an additional plan into their fiscal. Thus, given liquidity boosting measures will have a negative impact on the fiscal figure and slippage is likely to remain a big concern. Hence, rather than a welcoming move, we are seeing a slightly depreciating move in the Rupee. Amit Pabari, managing director, CR Forex Advisors

Nifty sectoral trend was largely negative with Nifty PSU Bank index top sectoral loser. Nifty Bank index was also down 0.60 per cent. While Nifty FMCG, Nifty Auto and Nifty IT indices were trading in green

Tech Mahindra, Kotak Mahindra Bank, ICICI Bank, HDFC Bank, Infosys, Axis Bank, Bharti Airtel were among top index laggards

Reliance Industries Ltd (RIL), Asian Paints, Larsen & Toubro, TCS, HCL Tech, NTPC were among top Sensex gainers

BSE Sensex was trading 36 points up at 52,772, while the Nifty 50 index was ruling flat above 15,800

BSE Sensex was up 72 points or 0.14 per cent at 52,807, while Nifty 50 index was trading flat with negative bias at 15,800

COMEX gold trades marginally lower near $1775/oz after a 0.2% gain yesterday. Gold is pressurized by stable US dollar, Fed’s monetary tightening concerns and drop in Chinese imports last month. However, supporting price is renewed virus concerns and mixed economic data from major economies. ETF inflows also showed some buying interest. Gold may remain range bound below $1800/oz until there is more clarity about Fed's monetary policy stance. Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities

BSE-listed companies such as Finolex Cables, Hindustan Oil Exploration, Balmer Lawrie Investments, Indian Railway Finance Corporation, Kirloskar Electric Company, KRBL, Mahanagar Telephone Nigam, Nagarjuna Fertilizers and Chemicals, NBCC (India), Noida Toll Bridge Company, Omaxe, Ruchi Soya Industries, Rail Vikas Nigam, IRCTC, Sunteck Realty, Suzlon Energy, among others will announce their January-March quarter earnings on June 29.

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Foreign Institutional Investors (FII) were net sellers of domestic stocks on Monday, pulling out Rs 1,658 crore. Meanwhile, Domestic Institutional Investors (DII) were net buyers of Rs 1,277 crore worth of securities. 

Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Hyderabad: The price of Petrol and Diesel were hiked once again by the oil marketing companies. Petrol price in Delhi today stands at Rs 98.81 per litre, an increase of 35 paise. Diesel in the capital city is retailing at Rs 89.18 per litre today, up 28 paise since yesterday. Fuel prices have increased 32 times since May 4 and twice already this week. The price of petrol in Delhi has increased by Rs 8.12, while diesel price has surged Rs 8.76 per litre since the rates started increasing. 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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In overnight trade on Wall Street, the S&P 500 gained 0.23 per cent, the Nasdaq Composite rose 0.98 per cent, while the Dow Jones Industrial Average fell 150.57 points.

Asian stock markets were trading lower on Tuesday, even as the S&P 500 and Nasdaq Composite saw record closing highs on Wall Street. Japan’s Nikkei 225 fell 1.03 per cent in early trade while the Topix index shed 1.11 per cent. South Korea’s Kospi also declined 0.17 per cent. 

Nifty futures were trading flat to negative, down just 4.50 points at 15,869.50 on Singaporean Exchange.

Domestic equity markets saw a volatile trading session on Monday, slipping from intra-day highs to closed with a negative bias. S&P BSE Sensex was down 189 points on the closing bell at 52,735 while the Nifty 50 index ended 45 points lower at 15,814. On Tuesday morning, SGX Nifty was down with marginal losses, signalling some negative momentum ahead of the opening bell. Cues from global peers were mixed. On the charts, Nifty stook looks strongly placed. 

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Amid calls for a fresh relief package to soften the blow to the economy and people at large from the savage second Covid wave, the government on Monday unveiled a package that largely consisted of steps to boost credit flows to multiple sectors, chiefly MSMEs, small borrowers, healthcare providers and contact-intensive sectors such as travel and tourism. While the aggregate relief, as estimated by the government amounted to Rs 6.29 lakh crore, a sizeable chunk of Rs 2.68 lakh crore is credit to be facilitated.

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