Sensex ends 189 pts lower; FM announces relief for Covid-hit economy

Among notable steps, FM Sitharaman announced Rs 1.1-trillion loan guarantee for Covid-affected sectors. Health sector, she said, will receive attention for scaling up infrastructure on cities and town

5:50 PM

TECH VIEW :: Ashis Biswas, Head of Technical Research at CapitalVia Global Research

After breaching all-time high of 15900, the market witnessed some lackluster movement and an attempt to hold the support level above the Nifty 50 Index level of 15800. The market suggests, trading above 15800 is positive from a short-term perspective. Sustaining above 15800 levels, the market to gain momentum, leading to an upside projection till 16100-16200 level. the momentum indicators like RSI, MACD to further strengthen in favor of a positive outlook

5:49 PM

MARKET CLOSING COMMENT :: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Sec

The witnessed a range-bound activity near its all-time high level.  The weekly opening of the Nifty / Sensex was positive, the benchmark index Nifty/ Sensex opened at 15915.65/ 53126.73 but due to lack of follow-through buying it consolidated in the range of 15800 to 15910/ 52700 to 53100 levels.

Technically, today the market made a fresh high but failed to sustain above the 15900/ 53100 level. However, on the intraday charts the index still maintains higher bottom series formation which is broadly positive for the market.

We are of the view that, as long as the Nifty/ Sensex is trading above 15750 /52550 the uptrend texture should intact. We can expect an uptrend continuation wave up to 15900- 15950/ 53100-53500. On the flip side, below 15750/ 52550 would increase further weakness up to 15700-15660/ 52000-51700. Among sectors, the metal stocks continue the positive momentum and strong buying was seen in PSU Banks. Intraday profit booking was seen in HDFC Life and selective IT stocks

5:43 PM

Trade set-up for Tuesday

 For the coming session, Monday’s high would be seen as an immediate hurdle; whereas only a convincing move in few heavyweights would push the index towards its magical figure of 16000. Till then the long wait continues. As far as supports are concerned, 15750 – 15700 remains to be a key zone. Generally when key indices gives dull movement, we have the tendency to look for trading opportunities in individual stocks. But since last 2 – 3 sessions, we are unable to find such potential movers in the broader market as well and hence, it would be interesting to see how things pan out in the forthcoming session

Views by: Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking

5:34 PM

MARKET CLOSING COMMENT :: Deepak Jasani, Head of Retail Research at HDFC Securities

Indian benchmark equity indices ended lower on June 28 after a higher opening and making a fresh intra day all time high. Nifty opened higher, and made a new high in the first minute of trade. It later started to fall and closed almost at the intra day low. At close, the Nifty was down 45.70 points or 0.29% at 15814.70.

 

Nifty shifted to higher opening and lower closing once again. Very low volumes suggest low participation from institutions even as they are unsure of the direction of the markets which has also led to lower volatility. This has resulted in lower trading interest. The Nifty has formed an engulfing Top pattern. An opening below today’s low could accelerate the downtrend. 15702-15915 could be range for the near term for Nifty.  

5:24 PM

EXPERT VIEW :: Madhavi Arora, Lead Economist at Emkay Global Financial Services on FM’s relief measures

While the measures are welcome and target Covid sensitive sectors , most of the fiscal support is still below the line and in the form of loan guarantees, and not direct stimulus. Overall, Amid various push and pull, there is a likelihood of fiscal slippage to the tune of around 0.5% from the initially budgeted 6.8%.

Despite the slippage, the effective fiscal impulse will still be negative in FY22. Given the limited efficacy of monetary easing currently, continued countercyclical fiscal policy support—and avoiding a premature consolidation—remains crucial

5:12 PM

MARKET VIEW :: Nish Bhatt, Founder & CEO, Millwood Kane International on FM's announcement

The onslaught of the second wave and the impact of the lockdown was severe, particularly for the contact-oriented businesses like travel & tourism and small businesses. The travel & tourism sector is crucial to earning foreign currency in the case of international tourism. The announcement by the government is well-timed and in the right direction. MSMEs, MFIs, and small and unorganized sectors are the biggest employment creators. The measures will help boost growth, given the increased pace of vaccination across the country. The announcement for the health infra sectors will help strengthen the fight against the pandemic.

 

The enhanced limit for the credit guarantee scheme will ensure funding for businesses and help the most affected sectors. The economy needs the government's support especially post the lockdown in months of April and May.

4:50 PM

TECH VIEW :: Rohit Singre, Senior Technical Analyst at LKP Securities

The nifty index closed at 15,815, forming a bearish candle on the daily chart

The index, once again, witnessed strong resistance at 15,900. Going forward, until we don’t see a decisive close above 15,900 zone, we may not see aggressive northward move

Support is near 15,775-15,675 zone.

4:38 PM

MARKET VIEW :: Vinod Nair, Head of Research at Geojit Financial Services on FM's announcements

Extension of emergency credit schemes by 50% to Rs 4.5lac cr with a focus on stressed sectors will be a boom for the straggling MSMEs. The subsidy financing by 2% interest rate below the RBI prescribed rate will be again for MFI, NFBCs and small borrowers, which are in dire need of falling NPAs & working capital.

The extended & new Atmanirbhar program is positive for the broad economy, especially rural, healthcare & hospitality sector, though unlikely to impact the market directly which will maintain its character"

4:26 PM

MARKET OUTLOOK :: What would move the markets on Tuesday?

Markets settled marginally lower as participants preferred to book profit at higher levels. The benchmark opened on a firm note following supportive global cues however profit-taking in the index majors erased all the gains and pushed the index lower. Eventually, the Nifty index ended lower by 0.2% at 15,815 levels. 

 

Markets may react to the announcements made by the Finance Minister(FM) in early trades on Tuesday which were primarily focused on boosting the economic recovery and supporting the vulnerable sectors and individuals impacted due to COVID. We reiterate our bullish view and suggest continuing with a stock-specific trading approach. Among the sectors, banking has the potential to trigger the next up move.

Views by: Ajit Mishra, VP - Research, Religare Broking 

4:12 PM

MARKET RECAP :: S Ranganathan, Head of Research at LKP Securities

Worries on Inflation kept markets muted today on the Index as the street looked forward towards relief measures from the FM on the ECLGS and Health Infrastructure. The broader market though remained reasonably buoyant with several stocks across PSU Banking, Metals & Gas seen buzzing around today

4:01 PM

NEW STOCK ON THE BLOCK :: KIMS ends at Rs 996 on the BSE

4:00 PM

NEW STOCK ON THE BLOCK :: Dodla Dairy ends at Rs 609 on the BSE

3:56 PM

NSE Snapshot :: Top Nifty50 gainers of the day

3:55 PM

Stocks that weighed on the Sensex today

3:50 PM

BSE SmallCap index settles 0.46% higher

3:48 PM

BSE MidCap index ends 0.4% up

3:45 PM

Sectoral trends on the NSE

3:42 PM

Sensex Heatmap at Close

3:38 PM

CLOSING BELL

After hitting a lifetime high of 53,126 in the morning deals, the benchmark S&P BSE Sensex slipped into the red to end at 52,735 levels, down 189 points or 0.36 per cent. The broader Nifty50, on the other hand, closed at 15,815 levels, down 46 points or 0.29 per cent. The index scaled new peak of 15,915.6 earlier today.

 

 

3:34 PM

NEWS ALERT :: FM announces measures for tourism sector

>> Financial support of 11,000 registered tourist guides (10,700)/licensed travel and tourism stakeholders

 

>> Working capital/personal loans to be extended to people in the tourism sector to discharge liabilities or restart business

 

>> Loans to be provided with 100% guarantee, up to Rs 10 lakh for travel and tourism stakeholders (per agency)

 

>> Rs 1 lakh for licensed tourist guides

 

>> Tourist visas to be provided free of cost the first 500,000 tourists after the process starts

 

>> The scheme will be applicable till March 31, 2022, or first 500,000 visas, whichever is earlier

 

>> Total financial implication of the scheme: Rs 100 crore

 

3:21 PM

NEWS ALERT :: Rs 1.1-trillion loan guarantee for Covid-affected sectors, says FM

Health sector to receive attention for scaling up infrastructure on cities and towns other than the eight metros. Up to 75% coverage for new projects... 50% for expansion projects. Interest rate capped at 7.95%. Maximum loan Rs 100 crore. Tenure up to 3 years

For aspirational districts, guarantee cover 75% for both new and expansion projects

 

For other sectors, Rs 60,000 crore of loan guarantees. Interest rate capped at 8%

Normal interest rate without guarantee scheme is 10-11%

3:13 PM

NEWS ALERT :: FM Sitharaman to announce 8 relief measures

>> 4 are new measures

3:01 PM

Sugar stocks on a roll on improved outlook; Shree Renuka zooms 127% in June

Shares of sugar companies were on a roll on Monday, with most of the stock trading at their multi-year highs on the back of up to 20 per cent rally on the bourses, on improved outlook. Shares of the companies have been on an uptrend ever since the government mandated 20 per cent ethanol blending in fuel by 2025 against the current blending of 7.79 per cent. READ MORE

2:51 PM

Heatmap: S&P BSE Sensex gainers and losers at this hour

2:49 PM

After their love affair with gold, Indians train their sights on crypto

The cryptocurrency aficionados’ mantra that Bitcoin is equivalent to digital gold is winning converts among the world’s biggest holders of the precious metal. In India, where households own more than 25,000 tonnes of gold, investments in crypto grew from about $200 million to nearly $40 billion in the past year, according to Chainalysis. That’s despite outright hostility toward the asset class from the central bank and a proposed trading ban. READ MORE

2:39 PM

Pharma stocks in focus

Company	LATEST(rs)	CHG(%)
Cadila Health.	640.40	2.61
Glenmark Pharma.	668.75	3.36
Sequent Scien.	288.00	7.30
Biocon	405.35	2.14
Granules India	316.45	0.80

2:32 PM

Q&A | Expect low single-digit return over 12 months: Mahesh Nandurkar, Jefferies

Our 12-month Nifty target is 16,300 and we expect low single-digit returns from the market over the next 12 months. This view is based on our expectation of slow unwinding of excess liquidity globally and also in India. This assumes that the market P/E multiple de-rates by about 10 per cent, which should be offset by underlying corporate earnings growth. While the market as a whole may not deliver very high returns, certain segments of the market can definitely deliver much better returns. READ FULL INTERVIEW HERE

2:20 PM

Fall from intra-day high today in BSE500 stocks

COMPANY	DAY'S HIGH(RS)	DAY'S LOW(RS)	LATEST(RS)	FALL(%)
Thyrocare Tech.	1445.10	1316.25	1319.00	-8.73
Orient Cement	150.00	137.30	137.60	-8.27
Tanla Platforms	870.00	801.00	801.00	-7.93
Finolex Inds.	198.90	180.70	183.55	-7.72

2:10 PM

NEWS ALERT | Escorts announces price hike for tractors, effective July 1

2:03 PM

Oil India trades higher for 7th straight day, hits 18-month high

Shares of Oil India hit an 18-month high of Rs 161.60, up 3 per cent on the BSE in intra-day trade on Monday on improved outlook. The stock of the state-owned oil exploration and production company was trading at its highest level since November 2019. It was quoting higher for the seventh straight trading day. In the past one month, Oil India has gained 22 per cent as compared to a 2.7 per cent rise in the S&P BSE Sensex. READ MORE