Despite positive global cues, Indian indices opened flat on June 11. The Sensex dipped by 78.21 points, or 0.10%, to 76,411.87, while the Nifty slipped 14.00 points, or 0.06%, to 23,245.20. Market breadth was positive with 1,760 shares advancing, 563 declining, and 117 remaining unchanged.
Among the major gainers on the Nifty were ONGC, NTPC, Apollo Hospitals, Nestle, and Coal India. Key losers included Asian Paints, Shriram Finance, BPCL, ICICI Bank, and Tata Motors.
The key level to watch remains 23,338, the previous record high, which the Nifty has yet to close above. Sustaining beyond this level could allow the index to test the 23,411 mark again, though this zone remains fraught with supply pressures.
Meanwhile, the Nifty Bank index remained flat on Monday, once again crossing the 50,000 mark before closing at nearly the same level as Friday. Bulls may find solace in the fact that Monday's intraday high of 50,252 was higher than Friday's peak, indicating some underlying strength. Notably, Tuesday marks the expiry of the Nifty Financial Services, which could add another layer of volatility.
The cautious tone in the market can be attributed to the looming Fed decision, which is causing investors to tread carefully. The uncertainty surrounding the rate cut has injected a sense of caution, as traders wait for clearer signals from the central bank. The Fed's decision will be a crucial determinant of market direction in the coming weeks.
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Jun 11, 2024, 3:24 pm IST
Railway Stocks Surge As Ashwini Vaishnaw Retains Railway Ministry
After rallying over 100% this year, heavy buying continued in railway stocks such as RVNL, IRFC, IRCON, RailTel, and IRCTC. These stocks have surged between 3% and 10% on Tuesday, June 11. IRFC shares are currently trading 3% higher at ₹177.80, marking a 76% increase so far in 2024. RailTel shares have also risen by 7.70% in today's trading session. RVNL's share price jumped 4% in early trade on June 11, following the company's receipt of a ₹138.45 crore work order from Central Railway. This year, the stock has surged approximately 114%.
Jun 11, 2024, 2:56 pm IST
Adani Defence & EDGE Group Ink R&D Agreement
On Tuesday, June 11, Adani Enterprises Ltd. announced that Adani Defence & Aerospace has signed a cooperation agreement with the UAE-based EDGE Group. The agreement involves exploring collaboration across EDGE's and Adani's core product areas, which include missiles and weapons for airborne, surface, and infantry use, ammunition, and air defence products. It also covers platforms and systems for unmanned aerial systems, loitering munitions, counter-drone systems, unmanned ground vehicles, as well as electronic warfare and cyber technologies.
Jun 11, 2024, 2:28 pm IST
L&T Technology Services And IIT Hyderabad Partner To Enhance Driving Safety And Efficiency
L&T Technology Services shares rose by 2% during the morning trading session on Tuesday, June 11. This increase followed the company's announcement of a collaboration with the Indian Institute of Technology, Hyderabad. The partnership aims to promote advancements in industry and academia within the fields of Advanced Driver Assistance Systems (ADAS) and Cellular Vehicle-to-Everything (CV2X) communication, according to a stock exchange filing by L&T Technology Services.
Jun 11, 2024, 1:51 pm IST
Oil & Gas Stocks
Nifty oil and gas stock traded higher on Tuesday at the time of writing. The index is in focus after the recent hike in LNG prices, which is likely to take a toll on a couple of natural gas players despite demand continuing to be robust. The hour of focus is none other than GAIL, GSPL, and Petronet LNG share prices. The three stocks showed mixed trends.
Jun 11, 2024, 12:51 pm IST
Interglobe Aviation Block Deal Impact
Interglobe Enterprises Private Ltd, under the stewardship of Rahul Bhatia, has announced its intention to sell a stake worth 4 million in Interglobe Aviation, the holding company of Indigo Airlines. This revelation, sourced from Moneycontrol and supported by multiple industry insiders, has triggered a flurry of market activity, with investors closely monitoring the developments and their potential impact on the aviation giant's share price. At the onset of this news, Interglobe Aviation's share price witnessed a dip on exchanges. Currently, the stock is down by 4% on BSE.
Jun 11, 2024, 12:23 pm IST
Market Outlook By Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
"A strong pillar of support for this bull market has been the mutual fund industry which is witnessing sustained inflows. The Rs 34697 crore net inflows into equity funds in May and monthly SIP inflows touching Rs 20904 in May indicate that this domestic support to the market will continue despite the FII selling. FIIs turning buyers during the last two days and covering their shorts will support the market in the near-term.
BJP keeping the key portfolios signals continuity in policies. This is a positive from the market perspective. From the fundamental perspective, the 25% increase in corporate profitability in FY24 augurs well for the market."
Jun 11, 2024, 12:01 pm IST
Sector Update: Life Insurance May'24 | May'24 Builds Up A Strong FY25 - YTD Growth +20% (vs 2% YoY)
Raghvesh R of JM Financial said, “May’24 saw the life insurance industry grow by a strong 18.7% in individual APE to INR 72.5bn. While private sector grew by a strong 25.4% YoY, LIC was slow at +7.2% YoY. FY24 had begun softly for life insurers and individual APE had grown by a weak 2.0% YoY (5.1% for private players) in Apr-May’23, after a famously busy March – the trend has reversed with a strong 20.2% growth (25.1% for private players) in 2MFY25. In total APE terms, the reversal of fortunes was stark - at +23.1% YoY for industry, against a contraction of 3.3% in Apr-May’23. In FY24, the industry had reported a sub-par growth of 4.1% in total APE terms, against a 5-year CAGR of 11.4% over FY18-FY23 – with weakness in both individual (+4.8% YoY) and group business (+0.7% YoY) – while Apr-May are seasonally weak, the trend is surely changing. While HDFC Life continues to grow with policy count (Avg. Ticket Size flat YoY), both IPRU (+31%) and SBI Life (+17%) reported strong growth in ticket sizes, indicating strong ULIP sales. All the private insurers had seen margins being hit in FY24, with IPRU/SBI Life/HDFC Life seeing 740/190/130 bps of contraction, however, a strong APE growth in FY25 can offset product mix impact. There remain headwinds for the sector – regulation of surrender charges is back in news and RBI continues to highlight poor C-D ratios of banks, however, we believe life insurers are attractively priced. We are positive on the leading players delivering healthy 18%-20% VNB growth over FY24-FY26e, led by APE growth. With strength of its banca, innovative product mix and growing agency, HDFC Life is our top pick.”
Jun 11, 2024, 11:38 am IST
Sector Update: Oil And Gas | India's Gas Demand Still Robust, Recent Rise In Spot LNG Price A Risk
Dayanand Mittal of JM Financial said, “India’s gas demand remained robust at 197mmscmd in Apr’24 (vs. 195-196mmscmd during Jan-Mar'24) led by strong LNG demand in the power segment. India’s LNG demand continued to strengthen in Apr’24 with sustained moderation in spot LNG prices, driven by power, CGD and fertiliser segments. CGD sector gas demand improved slightly MoM as LNG demand rose to offset reduction in APM gas allocation. However, Asian spot LNG price has risen recently to ~USD 12/mmbtu (or in line with historical average of ~15% of Brent) on account of continued strong cooling demand amidst high temperatures in Southeast Asia and China. Though spot LNG price is still relatively lower vs. other alternative fuel prices, it is at a premium vs. LPG/Propane price. Further, European gas prices are also trading higher at USD 10-11/mmbtu and US HH gas price rose to ~USD 2.8/mmbtu. Sustained rise in Asian spot LNG prices could be a concern for all gas companies, particularly for CGD companies like Gujarat Gas (given its 20-30% dependency on spot LNG) as a) spot LNG pricing power vs. propane has reduced recently; and b) the low-cost APM gas allocation is also gradually declining for the CNG/domestic PNG segment. Further, this can impact domestic LNG demand and, hence, volume for Petronet LNG, GAIL and GSPL.”
Achal Lohade of JM Financial said, “Electrical Consumer Durable (ECD) companies’ revenue grew by 16% YoY (+13% 5-year CAGR), largely led by the summer-led product portfolio (Fans, air coolers and RACs) followed by the B2B segment (particularly cables, switchgears, professional lighting). Fans reported robust growth post a few quarters of weak performance, largely on account of lean inventory levels during 3Q and low base. Appliances categories showed a mixed trend. Stove Kraft outperformed peers yet again with robust revenue growth (+17% YoY) while BGAL reported 11% YoY decline in revenue. Companies with higher exposure to the rural economy continued to witness muted growth (BJE revenue declined 8% YoY), while lighting segment remained impacted due to price erosion, mainly in the B2C space. On the profitability front, gross margin improved on the back of a benign RM environment,though it was offset by high competitive intensity (schemes/discounting), and sustained spends (A&P). Morever, leading players have already announced price hikes in April across categories and may undertake further hikes in 1QFY25.We continue to maintain our positive view on the space from the medium- to long-term perspective given macro tailwinds (low penetration in some categories) and category expansion opportunities for most companies. Our top picks - Bajaj Electricals, RR Kabel, and Cello World.”
Jun 11, 2024, 10:33 am IST
Market Outlook Today By Sameet Chavan, Head Research, Technical and Derivative - Angel One
The trading week began positively, with prices hitting new highs and surpassing 23400 within the first few minutes. However, the momentum soon faded, and prices fluctuated within a range for most of the session. In the last hour, some profit-taking erased the morning gains, resulting in a minor decline of 0.13%, ending just above the 23250 mark.
Last week was eventful with significant price swings, but after major events concluded, we saw a low-activity session for key indices. This is reflected in the daily chart, showing a small negative candle near last week’s high. Traders shifted focus to broader markets, which remained active. Moving forward, maintaining a positive outlook is advised, but traders should be selective and avoid complacent bets. The ideal strategy is to buy on dips and take regular profits, as the index is likely to consolidate after last week’s sharp rise from panic lows. Immediate support is around 23130, with crucial support at 23000, while resistance lies between 23400 and 23500 in uncharted territory. Traders should monitor these levels and plan their trades accordingly.
Going ahead, while key indices may move within a range, attention should shift to themes that could benefit from the upcoming budget. Traders should focus on sectors likely to outperform in this context.
Jun 11, 2024, 10:02 am IST
Tata Technologies Implements SAP S/4 HANA For Mitsubishi Electric India
Tata Technologies has successfully deployed SAP S/4 HANA for Mitsubishi Electric India Pvt Ltd, marking a significant step towards digital excellence for the company. This strategic collaboration has significantly enhanced operational efficiency, setting new industry benchmarks.
Jun 11, 2024, 9:27 am IST
Market Opens Slightly Lower
Despite positive global cues, Indian indices opened flat on June 11. The Sensex dipped by 78.21 points, or 0.10%, to 76,411.87, while the Nifty slipped 14.00 points, or 0.06%, to 23,245.20. Market breadth was positive with 1,760 shares advancing, 563 declining, and 117 remaining unchanged.
Jun 11, 2024, 9:10 am IST
Rupee Opens Slightly Higher
The Indian Rupee opened slightly stronger at 83.48 per US Dollar on Tuesday, compared to Monday's close of 83.51.
Jun 11, 2024, 8:18 am IST
Asian Stocks Steady Amid Anticipation Of US Economic Data
Asian stocks were cautious in early trading, reflecting a subdued session on Wall Street as investors prepared for this week's Federal Reserve decision and US inflation data. Japan's markets showed early gains, while Australia's markets edged lower after reopening from a public holiday. Hong Kong futures remained relatively unchanged. Traders are bracing for potential volatility due to impending US economic indicators and political uncertainty in Europe, which also tempered equity movements.
Jun 11, 2024, 8:18 am IST
Oil Prices Continue Rally On Hopes Of US Crude Reserve Purchase
Oil prices climbed on Tuesday, extending Monday's rally amid expectations of increased seasonal fuel demand and potential US crude purchases for its strategic petroleum reserve. However, a stronger Dollar limited the gains. Brent crude futures increased by 28 cents, or 0.3%, to .91 per barrel, while US West Texas Intermediate crude futures rose by 31 cents, or 0.4%, to .05 per barrel.
Jun 11, 2024, 8:18 am IST
Dollar Strengthens Ahead Of Key Inflation Data & Fed Forecasts
The Dollar remained firm near a one-month high against the Euro and reached a one-week peak against the Yen on Tuesday as traders anticipated crucial US inflation data and updated Federal Reserve interest rate forecasts. Supported by higher Treasury yields following unexpectedly strong domestic jobs data last week, the Dollar saw a reduction in expectations for Fed rate cuts this year. Early in the Asian trading session, the Dollar increased by 0.13%, reaching 157.25 Yen, its highest level since June 3.
Jun 11, 2024, 8:17 am IST
GIFT Nifty Indicates A Positive Opening
Trends on GIFT Nifty suggest a positive start for the broader Indian market, with an anticipated gain of 43.5 points, or 0.19%. Nifty futures were trading around the 23,276 level.
Jun 11, 2024, 8:17 am IST
S&P 500 & Nasdaq Reach Record Highs Amid Caution Ahead Of Fed Meeting, CPI Data
The S&P 500 and Nasdaq closed at record highs on Monday, but investor caution remained evident ahead of this week's key economic events, including the Consumer Price Index (CPI) report and a Federal Reserve policy announcement.
Nvidia shares provided some support to both indices, rising 0.7% following a 10-for-one stock split. This gain has fueled speculation that the chip maker might soon be included in the prestigious Dow Jones Industrial Average.
Anticipation is building for the release of the May CPI report on Wednesday, coinciding with the conclusion of the Fed's two-day policy meeting. These events are expected to provide critical insights into inflation trends and the Fed's monetary policy stance.
The Dow Jones Industrial Average experienced a modest increase, climbing 69.05 points, or 0.18%, to close at 38,868.04. The S&P 500 rose 13.8 points, or 0.26%, ending at 5,360.79, while the Nasdaq Composite advanced 59.40 points, or 0.35%, to 17,192.53.
Last Friday, the Bureau of Labor Statistics reported Friday that the U.S. non-farm payrolls increased by 272,000 for the month, considerably higher than the Wall Street consensus of 190,000 and well above April’s comparatively muted gain of 165,000.
In addition, average hourly earnings rose 4.1% over the past 12 months, more than expected.
Beyond signaling a still-vibrant labor market, the data at the very least adds to the narrative that the Fed doesn’t have to rush to lower interest rates. As such, futures traders cut bets on rate cuts which meant a stronger US Dollar for now.
Pricing in FED funds futures pointed to almost no chance of a reduction at either the Federal Open Market Committee’s meeting on Wednesday or on July 30-31. From there, pricing indicates about a 50-50 chance of a September move, and only about a 43% probability that the Fed will follow up with a second cut before the end of the year.
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