Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and NSE Nifty 50 ended flat to negative on Monday. BSE Sensex ended 94 points or 0.2 per cent down at 55,675, while NSE Nifty 50 index finished trade at 16569.55, down 0.1 per cent. Tata Steel was the top gainer, up more than 1%, followed by IndusInd Bank, Mahindra & Mahindra, ITC, Kotak Mahindra Bank, Infosys, and ICICI Bank among others. On the contrary, Asian Paints, UltraTech Cement, Bajaj Finserv, Nestle India, Hindustan Unilever, and Sun Pharma were top draggers. India VIX rose 1.13 per cent to 20.20 levels
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BSE Sensex ended 94 points or 0.2 per cent down at 55,675, while NSE Nifty 50 index finished trade at 16569.55, down 0.1 per cent
“Today, we are witnessing long built-up formation in stocks like Coromandel, Lalpath Labs, UBL, RBL Bank, ONGC etc. while short build-up is visible in counters like Voltas, Ibulhsgfin, Deepak Nitrate, Heromotoco and LTTS etc.”
~ Chandan Taparia, Vice President, Equity Derivatives and Technical, Broking & Distribution, Motilal Oswal Financial Services
Oil India is well placed to benefit from rising oil and gas prices and high GRMs and FY25E EBIDTA can increase to Rs210bn (FY22-Rs105bn) on higher volumes. We maintain our estimates and retain ‘BUY’ with a PT of Rs344 based on 3.5x EV/E FY24E. Avishek Datta Research Analyst Prabhudas Lilladher
Nifty and Bank Nifty are expected to remain in a range with positive bias. Traders are advised to apply Buy on dips strategy as long as Nifty holds above the crucial support of 16400-16442 zones. At current juncture, we are advising to be with selective stocks and one can look for buying opportunity in stocks like Reliance Industries, ONGC, TCS and ICICI Bank. Chandan Taparia, Vice President, Equity Derivatives and Technical, Broking & Distribution, Motilal Oswal Financial Services
Domestic stock markets remain rangebound and volatile with Sensex and Nifty starting this week with losses. S&P BSE Sensex has dropped more than 100 points on Monday sitting above 55,600 while the NSE Nifty 50 index is holding 16,500 after falling 30 points. Analysts have been advising investors to go stock specific to shield themselves from the volatility that has been gripping Dalal Street over the last couple of weeks now. HDFC Securities has narrowed it down to two stocks that they believe may perform well over the next 2-3 quarters. These are WPIL and J Kumar Infraprojects.
The Indian Meteorology Department (IMD) officially declared the arrival of the monsoon on 29 May, three days ahead of the forecasted schedule. Since then, rainfall conditions have been mixed, but overall the monsoon is progressing well. The combination of an early onset of the monsoon and healthy progression could help sowing, and reduce inflation pressures in the economy. The IMD recently upgraded its monsoon outlook and now expects total rainfall to be 103% of the Long period average(LPA) (earlier: 99% LPA). The IMD’s updated long-range forecast is now higher than the private forecaster Skymet’s projection of 98% of the LPA this season. Rahul Bajoria, MD & Chief India Economist, Barclays
India’s market capitalization-to-GDP ratio has been volatile, reaching 56% (of FY20 GDP) in Mar’20 from 80% in FY19. It has rebounded to 112% at present (of FY22 GDP), above its long-term average of 79%. The ratio was at the highest level since CY07. Currently, on FY23E GDP growth of 11%, the ratio stands at 98%. The Nifty is trading at a 12-month forward RoE of 15.6%, above its long-term average. Motilal Oswal Financial Services
Aether Industries, DHP India, Galaxy Bearings, HBL Power Systems, Kohinoor Foods, Moongipa Securities, Parshva Enterprises, Sadhna Broadcast, Shankar Lal Rampal Dye-Chem, Sunedison Infrastructure, Universal Starch-Chem Allied were among the stocks that hit 52-week high on BSE. Meanwhile, Aarti Industries, Anupam Rasayan India, Birla Corporation, Dalmia Bharat, Ethos, Grasim Industries, IPCA Laboratories, JK Cement, Life Insurance Corporation of India (LIC), Panasonic Energy India Company, Shree Cement, Tasty Bite Eatables, Spicejet, Ultratech Cement, Vijaya Diagnostic Centre were among the scrips at fresh lows. Read full story
Despite government’s supply side interventions to curb price pressures, the foreseeable inflation trajectory remains skewed closer to 7%. We expect the MPC to revise upward the inflation trajectory by 70-80bps accounting for the upside price pressures. The GDP estimates may remain unchanged for now. From the policy withdrawal perspective, RBI in the last two months has moved quite aggressively and swiftly. The weighted average overnight rates have risen by 80-90bps since the April MPC policy. The recent countercyclical government measures has clearly provided room for the MPC to avoid disruptive tightening. We expect a repo rate hike of 35-40bps and status quo on CRR in the upcoming June policy. Upasna Bhardwaj, Senior Economist at Kotak Mahindra Bank
The MPC has signalled a gradual withdrawal of accommodation in light of higher inflation. It is likely that the RBI's stance will be “Neutral” while it will stay committed to bringing back inflation closer to the targeted levels through all possible instruments. I expect a rate hike between 35-50 basis points in the June policy. Based on inflation data and external factors, including oil and commodity prices, expect a total of 100 to 150 bps increase in repo rate from the current 4.40%. However, it is important that fiscal and monetary policies move in tandem to bring inflation within targeted levels and provide support to economic growth. Shanti Ekambaram, Group President – Consumer Banking, Kotak Mahindra Bank
LIC (Life Insurance Corporation of India) share price hit a fresh all-time low of Rs 785 apiece on BSE on Monday, taking the total market capitalisation below Rs 5 lakh crore. The LIC stock price has lost 10.23 per cent since listing on 17 May 2022. So far, the stock has failed to even touch the IPO price of Rs 949. With today’s low, the stock price has plunged 17.3 per cent from the issue price. “LIC is purely under price discovery process. It would be best for investors to first wait for any basic confirmation of any bottom before taking any investment calls,” Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services, told FinancialExpress.com. Read full story
Receding Omicron worry, stabilising commodity prices and bond yields along with the possibility of scaling down of Russia-Ukraine crisis may bode well for equity valuations, said ICICI Securities in a note. The brokerage firm said that stabilising commodity prices and bond yields are setting a floor for equity valuations that seem troubled earlier this year as covid-19 cases rose and then Russia Ukraine conflict escalated. The brokerage firm has pinned a 19,000 target on Nifty 50 for March 2023. The set target would be an all-time high for the benchmark index. Nifty is currently hovering around 16,500, down from its current high of 18,604.
TVS Motor Company is in advanced talks to raise Rs 4,000-5,000 crore from private equity firms to fund expansion of the group’s new electric mobility arm, Mint reported. The two-wheeler firm aims to build a “sustained dominant play” in the electric vehicle (EV) segment by leveraging various government initiatives such as production-linked incentive (PLI) scheme and others. As per its annual report for 2021-22, the company has robust plans to scale up its play in the electric segment. TVS seeks to increase the share of revenues from its EV business, capitalising on the increasing demand for EVs globally.
Shares of PVR and Inox Leisure fell 2.5 per cent and 3.3 percent, respectively, on NSE as the Maharashtra government made mask in public places mandatory again in light of rising cases. The state has seen a 54 per cent rise in reported COVID-19 cases in the previous 24 hours with 700 of the new 1,018 infections arising in Mumbai itself. The resurgence in COVID-19 infections has investors worried that footfalls in theatres could see a sharp fall as individuals avoid crowded places from fear of the virus.
Ultratech Cement share price has plunged over 25 per cent so far this year, underperforming even benchmark NSE Nifty 50 which has tanked 5 per cent. The stock tumbled 6 per cent on Friday, a day after the company announced a Rs 12,900 crore capex plan of adding 22.6 million tonnes per annum (mtpa) capacity by FY25. According to analysts at Sharekhan, this would aid Ultratech Cement in maintaining its leadership positioning in the sector. “We believe these aggressive capacity additions by large players can put undue pressure on operational profitability especially if cement demand does not resonate with the supply and energy costs do not normalize to a higher extent,” they said. Brokerages see up to 30% upside on the stock going forward.
Considering the recent market corrections ahead of monetary tightening, seemingly slowing economy and inflation peaking in later part of the year; it seems most of the negative factors seem to be already factored in by the financial markets. Moreover, we expect softer growth and the likely meaningful reduction in inflation which could slow down monetary tightening and liquidity withdrawal during the last quarter of 2022. Hence, gradually markets could see some consolidation from here as far as broader valuations are concerned. However, global events still continue to dominate and some sentimental improvement remains to be seen from it for markets to move decisively. Read full story
The 16460-400 region in Nifty will continue to be a catchment area for dips, and favoured view expects the same to hold for a two stepped uptrend to unfold, aiming 16950 first and 17200 subsequently. Alternatively, a slippage past 16140 will force us to switch sides, though our expectations towards such an outcome next week is low. Read full story
Nifty Bank, Nifty Pharma, and Nifty Healthcare Index were ruling in green, while all the sectoral indices were in red.
Infosys, Tata Consultancy Services (TCS), Hindustan Unilever, ITC, Tech Mahindra contributed the most to the indices fall, while Reliance Industries, Axis Bank limited the downside.
BSE Sensex was down 106 points or 0.2 per cent to 55,662, while the NSE Nifty 50 index fell 0.2 per cent to rule at 16,557
Markets are likely to start the week on a disappointing note as denting sentiments will be the slump in Wall Street’s indices on Friday on the back of stronger-than-expected US Jobs reports, which revived fears of rate hikes by the Federal Reserve. The report fanned fears that America's central bank would need to keep up its hawkish bent for longer, meaning that stiff 50-basis-point interest-rate hikes could continue past the Fed's summer meetings. Also, crude oil prices have skyrocketed to $120 per barrel, which can bring back concerns about the inflation, economy and earnings back on the radar. Technically speaking, the perma-bulls will have to really find reasons to protect the downside if Nifty slips below 16371 mark. Prashanth Tapse, Vice President (Research), Mehta Equities
Commodity prices traded mixed with most of the commodities in the non-agro segment kept positive trading throughout the week while very few managed to end in green. Bullion prices pared gains on positive US data and stronger dollar ahead of the US FOMC meet this month. Base metals kept a firm trading range on China re-opening and demand growth prospects. Crude oil prices rallied to $120 per barrel on tight supplies with EU sanctions on Russia despite OPEC plus hiking output quota. Read full story
The prices of petrol and diesel were kept unchanged by the OMCs for the fifteenth day running on Monday. Prices have remained steady since Finance Minister Nirmala Sitharaman announced a cut in excise duty on petrol by 8 per litre, and 6 rupees per litre on diesel earlier in May. Petrol price in Delhi today stands at Rs 96.72 a litre as against Rs 105.41 a litre last week, while diesel will cost Rs 89.62 a litre as opposed to Rs 96.67. In Mumbai, one litre of petrol costs Rs 111.35 while diesel is retailing at Rs 97.28 per litre.
Nifty holding 16400 post RBI policy outcome, would challenge 16800 and gradually head towards 17200 in the month of June. Key point to highlight during last week is that, throughout the week index managed to sustain above the earlier range breakout zone of 16400 coincided with positive gap area, highlighting elevated buying demand emerging from immediate support of 16400 as per change of polarity concept. Thus, we believe, after past six sessions rally of 1000 points, a healthy retracement towards 16500-16400 should be used as an incremental buying opportunity with focus on BFSI, IT, Auto and Capital goods. Read full story
This week will be important on Indian bourses as RBI credit policy meeting will be held. Market Expects, RBI to hike interest rate by 50bps from 4.40% to 4.90%. Commentary by the RBI governor will, for future course of action, be important for the market sentiment. RBI has already unexpectedly hiked interest rate by 40bps just one month ago on concern of higher inflation. However, the global market trend (US market) will be important for our market despite strong economy data reported in the last few days.
The chart pattern suggests that if Nifty crosses and sustains above 16800 level it would witness buying which would lead the index towards 17000-17400 levels. However if the index breaks below 16400 level it would witness selling which would take the index towards 16000-15700. For the week, we expect Nifty to trade in the range of 17100-16200 with a negative bias . The weekly strength indicator RSI is above its respective reference lines indicating positive bias. Read full story
Rupee expected to depreciate further this week towards 78.00 amid strong dollar and rise in crude oil prices. Further, traders speculate that US Fed should be prepared to raise interest rates by a half percentage point at next monetary policy meeting on June 15. Additionally, investors will remain vigilant ahead of major economic data from US like consumer price index data. At the same time, expectations of RBI interest rate hike by 40-50 basis points should keep the downside limited. USDINR (June) as long as it sustains above 77.60 it may reach till 78.20 in the week.
We may have seen the peak of inflation for now but we may not have seen the end of it yet. And failure to bring down inflation even after the central bank reaches the neutral rate has the possibility of destabilizing the economy. Hence, failure to contain the inflation genie should scare the markets more than the policy maker’s fight against it. We expect the MPC to deliver a no-brainer policy rate hike of 25-40 (basis points) bps in June. Churchil Bhatt, EVP – Debt Investments, Kotak Mahindra Life Insurance Company
Nifty 50 index, on Friday, witnessed a massive gap up opening above its consolidation range but couldn’t hold on to its early gains and lost more than 150 points from the day’s high but still managed to close 1 per cent higher on the weekly chart. The prices have found support near their 21-exponential moving average and other than that index continues to trade above its all-important averages on the monthly chart. Prices have formed a bullish hammer candle stick pattern on the monthly chart and it will be interesting to watch its next month’s candle for confirmation.
Stocks in Asia traded mixed Monday, as investors assessed the trajectory of central banks’ monetary policy tightening aimed at dousing inflation. Equities slipped in Japan and Australia, and were mixed in China. While US futures were choppy.
Adani Transmission (ATL): India’s largest private-sector transmission and distribution company Adani Transmission has signed definitive agreements with Essar Power to buy its Mahan-Sipat transmission line for Rs 1,913 crore.
Vedanta: Vedanta on Saturday said a committee of directors has approved raising up to Rs 4,089 crore via debentures on a private placement basis.
Tata Motors: Tata Motors has reported a growth of 185 per cent on-year, with a sale of 43,341 units in May 2022, making it the second highest selling carmaker in the country.
Markets have been witnessing a rebound for the last 3 weeks however the move lacks decisiveness due to lingering challenges like global tightening due to inflation, geopolitical tension, etc. We feel Nifty would regain some strength above 16,900 however a break below 16,400 will put bears back in the game. Meanwhile, participants should focus on sector/stock selection as markets are offering opportunities on both sides but avoid going overboard. Ajit Mishra, VP – Research, Religare Broking
The RBI’s policy decision would be the major event driving trading sentiment in the equity market this week, while global cues, foreign funds movement and crude oil prices will be the other key factors to watch out for, analysts said. Markets have been witnessing a rebound recently. However, the move lacks decisiveness amid lingering challenges like global policy tightening due to soaring inflation and geopolitical tensions, they added. Read full story
Domestic equity markets continue to witness range-bound but volatile trading action. Headline indices, S&P BSE Sensex and NSE Nifty 50 enter the new week after jumping a little over 1% in the previous one. Currently, Sensex sits at 55,769 while the Nifty 50 index is at 16,584 points. India VIX, the volatility gauge, is just shy of 20 points. SGX Nifty was down with losses ahead of Monday's trade, suggesting a weak opening to the day’s trade. Global cues were mixed during the early hours of trade.
A rally that lifted U.S. stocks from the brink of a bear market faces an important test next week, when consumer price data offers insight on how much more the Federal Reserve will need to do in its battle against the worst inflation in decades. Read full story
With inflation showing no signs of abatement, the Reserve Bank is likely to increase the benchmark lending rate in quick succession in its forthcoming monetary policy review on Wednesday, a hint for which has already been given by Governor Shaktikanta Das, opined experts. Read full story
Nifty futures were trading 88.50 points or 0.5 per cent at 16,500 on Singaporean Exchange.