Sensex, Nifty stage smart recovery in fag-end; IT stocks weak, auto rally

CLOSING BELL, JUNE 6, 2023: IKIO Lighting IPO sailed through on the first day itself with 1.2 times subscription till 3:30 PM

4:12 PM

COMMENT:: RBI growth, inflation forecast likely to set near-term trend

"The domestic market experienced profit booking due to selling pressure in the IT sector. IT stocks witnessed a decline in anticipation of further downward revision in spending. However, a rally in auto and banks helped to recover the losses. Going ahead an important influencer will be the commentary on growth and inflation forecasts by the RBI following its MPC meeting given the general consensus that rate pause will continue."

 

- Vinod Nair, Head of Research at Geojit Financial Services
 

4:12 PM

VIEW:: Key support for Nifty stands at 18,500

"During the observed period, the Nifty index exhibited high levels of volatility, but its movement was confined within a narrow range. On the daily chart, it formed a doji candle, indicating indecision in the market. As a result, the overall trend is expected to remain sideways, with the index not showing a clear direction in its movement. In terms of levels, there is a support level at 18,500, which suggests a potential floor for the index, while a resistance level is identified at 18,665, indicating a barrier to further upward movement."

 

- Rupak De, Senior Technical Analyst at LKP Securities

4:11 PM

VIEW:: Bank Nifty likely to trade sideways for now

"The Bank Nifty exhibited high volatility while trading within a narrow range during the observed period. On the daily chart, it formed a doji candle, signaling market indecision. This suggests that the overall trend is expected to remain sideways, without a clear direction in the index's movement. A support level is identified at 44,000, and if the index falls below this level, it might correct down towards 43,700. On the other hand, resistance levels are observed at 44,300 and 44,500, acting as barriers to further upward movement."

- Rupak De, Senior Technical Analyst at LKP Securities

4:07 PM

Cement shares rally; UltraTech hits 52-week high, Ambuja gains 4%

Profitability of cement companies are likely to improve in fiscal 2024, owing to softening of coal and pet coke prices and better operational efficiency. READ MORE

4:05 PM

Mazagaon Dock extends rally to 8th straight day; zooms 27% in two days

Going ahead, analysts at ICICI Securities perceive peak execution through to FY25E based on the current orderbook visibility. READ MORE

4:04 PM

HBL Power rallies over 12%; hits record high on huge volumes

HBL Power Systems (HBL) rallied over 12 per cent to Rs 135.60 on the back of heavy volumes. A combined 20 million equity shares, representing 6.9 per cent of total equity of HBL Power, had changed hands on the NSE and BSE today. READ MORE

4:01 PM

Force Motors soars 11% on healthy May sales numbers

Shares of Force Motors hit a fresh 52-week high at Rs 2,156.60 on the BSE, before settling 11.4 per cent higher after the company reported 30 per cent year-on-year (YoY) and month-on-month (MoM) jump in total sales at 2,645 units in May month. READ MORE

 

3:58 PM

Maan Aluminium hits 20% upper circuit on bonus issue, stock split plan

Shares of Maan Aluminium zoomed 20 per cent to Rs 298.95, hitting 52-week high on the BSE after the company announced its board will meet on Friday, June 9, to consider bonus issue and stock split plan. READ MORE

3:56 PM

Capacite Infra surges 51% in 1 month on improved operational performance

The company said the project awarding has seen an uptick and will likely gain further momentum in the coming quarters. READ MORE

 

3:53 PM

Market Breadth was positive; Nearly 2,000 stocks moved higher v/s 1,541 declining shares on the BSE

3:51 PM

Nifty Auto index rallies over 1%; TVS Motor jumps 3% Tata Moto, Maruti also shine

3:50 PM

Nifty IT index cracks 1.8%; Persistent Systems, CoForge, MphasiS fall around 4%

3:48 PM

BSE Smallcap Heatmap:: Meghmani Finechem, Nelco soar up to 14%; Hitech Gear cracks 5%

3:44 PM

BSE Midcap Heatmap:: JSW Energy, PolicyBazaar, HAL rally up to 5%; Persistent Systems dips 4%

3:41 PM

Smallcap indices outshine; India VIX rises over 2%

3:40 PM

Nifty 50 Losers:: Tech Mah, Infosys slip up to 2%; ONGC down 1%

3:38 PM

Nifty 50 Gainers:: UltraTech Cement gains 3%; Divis Lab, Grasim advance up to 2%

3:36 PM

Sensex 30 Heatmap:: Auto, cement stocks top gainers; IT slip

3:34 PM

CLOSING BELL:: NSE Nifty 50 adds five pts to 18,599

3:33 PM

CLOSING BELL:: S&P BSE Sensex ends flat at 62,793; recovers nearly 250 pts from the day's low

3:28 PM

ALERT:: NHPC inks pact with Maha govt for 7,350 MW contract; stock jumps 2%

NHPC has entered into a Memorandum of Understanding (MoU) with Department of Energy, Government of Maharashtra for establishment of Energy Storage Systems (Pumped Storage Systems) alongwith Other Renewable Energy Source (like Solar/ Wind/ Hybrid etc.) with a total capacity of 7,350 MW.

3:18 PM

e-Rupi to wearables: How 50% of all transactions will be digital in 3 years

Indian households are likely to make at least 50 percent non-cash transactions in the next three years  as penetration of smartphones and the internet, as well as favorable government policies have become key drivers in the adoption of  of digital payments in the country, says a report by Redseer Consultants and Pine Labs. READ MORE

3:08 PM

IPO ALERT:: IKIO Lighting IPO sails through on Day 1; retail portion fully subscribed

IKIO Lighting IPO was fully subscribed as of 3 PM on Day 1 of the offer period. The retail portion was subscribed 1.2 timex, while the non institutional investors portion was subscribed up to 1.6 times. 

3:02 PM

IT cos need to rightsize bench to boost efficiency, stop layoffs: Experts

Top Indian IT services companies need to rightsize their bench strength or utilisation rates to increase efficiencies and prevent layoffs, according to experts. Bench typically refers to those employees who are on the company's payroll but are not involved in any active projects. READ MORE

2:54 PM

ALERT:: Piramal Pharma announces appointment of Jeffrey Hampton as COO; stock down 2%

The company announced appointment of Jeffrey Hampton as President & Chief Operating Officer of the Piramal Critical Care business.

2:43 PM

Expert Take :: Shifting to new expiry will bring in better trader focus on each index

NSE's decision to shift Bank Nifty’s weekly expiry to Friday instead of coinciding it with the weekly expiry of Nifty on Thursday should help bring in better trader focus on each index and result in boosting overall volumes in the two most popular indices in the derivative segment.

Views by: Jay Thakkar, Head Alternate Research, Sharekhan by BNP Paribas

2:38 PM

RBI may set cutoff yield on 10-yr state bonds in 7.32%-7.35% band: Poll

Indian states will aim to raise an aggregate of 173 billion Indian rupees ($2.09 billion) on Tuesday through the sale of bonds maturing in five years to 30 years. READ MORE

2:28 PM

RBI policy preview :: We remain cautious of the impact on housing market

The increase in net absorption by the RBI from Rs 603 bn in April 2023 to Rs 1.75 trn in May 2023, indicates excess liquidity in the banking system. Thus, we expect the withdrawal of accommodation through a moderate, i.e 25bps hike in Standing deposit facility (SDF).

 

In terms of real estate, the implication of the rate hike on home loan demand has been minimal so far. Residential demand has remained upbeat indicating at strong consumer preference towards home ownership despite high interest rate and inflation over the last one year.

However, with economic growth facing headwinds from global slowdown, and the full impact of the high interest rates yet to be seen, we remain cautious of the impact on housing market.

Views by: Shishir Baijal- Chairman and Managing Director, Knight Frank India

2:19 PM

COMMENT on Bank Nifty Friday expiry:: Volatility in Nifty, Bank Nifty expiry likely to reduce

To counter BSE’s move of tweaking the lot size and expiry day of options contracts which had gained popularity due to low charges, NSE has revised the Bank Nifty weekly expiry to Friday of every week. From the investor-trader’s perspective, one of the critical points of consideration is volume, and NSE is still placed much better in market share than BSE, and hence, is most likely to continue its dominance.

 

Secondly, the volatility, particularly in NIFTY, is expected to come down by roughly 20% -22% as the components of Bank Nifty will be more active on Friday's expiry than Thursday's weekly expiry. At the same time, the monthly expiry, which includes stocks of the Bank, will be settled last Thursday. Hence, there are chances of more or less muted monthly Bank Nifty expiry.

 

On the other hand, if we compare only index options OI, 70% of it is of Nifty while 26% is that of Bank, which again hints that volatility in Nifty's weekly and monthly expiry is likely to come down. Moreover, the reduction of lot size from 15 to 10 by the NSE of Bank is also expected to have a significant impact as margins used on Thursday expiry for Nifty options can be used for Bank options expiry on Friday. However, it will be a bit early to comment on the same.

- Rajesh Palviya, SVP - Technical and Derivatives Research, Axis Securities 
 

2:11 PM

NBFC loan sanctions up 2% YoY in Q4, rises in investment sector: Report

Loan sanctions by non-banking finance companies (NBFC) grew 2 per cent year-on-year (YoY) to Rs 4.46 trillion in the fourth quarter of Financial Year 2022-23 (Q4 FY23), said a report on Tuesday. READ MORE