Sensex ended the day with a gain of 1,619 points to 76,693.6 and Nifty soared 469 points to 23,290 on Friday, 7th June 2024. Nifty Bank rallied 511 points to 49,803 and Nifty Midcap zoomed 781 points to 53,195.
In a recent meeting held on Friday, the board of directors of HDFC Asset Management Company (HDFC AMC) declared an interim dividend of Rs 70 per share for eligible shareholders.
Except for banking and financial stocks, all other sectoral indices traded higher. IT stocks were top performers, with gains also added by real estate stocks as well to the broader market.
All eyes in India will be on RBI which will announce the June monetary policy outcomes on Friday. The market and expert consensus is that RBI will hold rates with the repo rate at 6.5% and continue a 'withdrawal to accommodation' stance. However, it will be keenly watched if RBI follows the pattern of other central banks that have started to trim their rates.
On Thursday, both the ECB and the Bank of Canada trimmed key rates owing to easing in economies. Also, the Swiss National Bank has cut rates too. India's economy too has shown resilient growth with FY24 rate at 8.2%.
For the week, the Nifty has managed to climb 1.3%. To completely erase the losses from the previous week, the index needs to close above 22,957. Additionally, a close above 22,530 will ensure weekly gains. Thursday's high of 22,910 is now the immediate resistance level, followed by the crucial 23,000 mark.
Attention is now turning to the upcoming session on Friday, which is poised to be dominated by the Reserve Bank of India's Monetary Policy Committee (MPC) meeting. Market expectations are largely centered around a status quo with no changes in the stance. However, investors will be watching for any revisions to the GDP or inflation estimates for the financial year 2025.
The Nifty Bank has mirrored the overall market's volatility, facing resistance at the 49,600 level on Thursday and ending 400 points below its intra-day high. Nevertheless, it managed to defend the 49,000 mark at the close, maintaining a flat position for the week with a slight positive bias. This stability suggests cautious optimism among investors, who are balancing short-term uncertainty with long-term potential.
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Jun 07, 2024, 3:29 pm IST
Bajaj Finance Plans Rs.3,000 Crore Share Sale Through OFS In Bajaj Housing Finance IPO
"NBFC Giant Bajaj Finance to Offload Rs.3,000 Crore Shares of Bajaj Housing Finance in IPO" Bajaj Finance has announced its intention to divest Rs.3,000 crore worth of shares from its housing finance arm, Bajaj Housing Finance, in its upcoming IPO. The move is contingent upon market conditions and obtaining approvals from regulatory bodies including SEBI, BSE Limited, NSE Limited, and other relevant authorities.
Jun 07, 2024, 3:15 pm IST
Avanti Feeds, Shrimp Feed Producer, Witnesses Best Month Since 2020 With 30% Gain In Three Sessions
Avanti Feeds Ltd. shares soared by up to 15% on Friday, reaching a 52-week high of Rs.647.15. This marks the third consecutive day of gains, totaling nearly 30% over this period. Consequently, Avanti Feeds' market capitalization is approaching Rs.9,000 crore. Based in Hyderabad, Avanti Feeds specializes in manufacturing and distributing shrimp feed. The stock has exhibited a remarkable performance, doubling from its 52-week low of Rs.377, recorded on June 12 last year. As of the end of the March quarter, promoters held a 43.25% stake in Avanti Feeds.
Jun 07, 2024, 2:56 pm IST
GE Shipping Shares Rise 3% Following Acquisition Of Medium Range Product Tanker
Great Eastern Shipping's shares surged more than 3%, reaching an intra-day peak of Rs.1102.7 on the BSE on Friday, June 7, following the company's announcement of acquiring a medium range product tanker. In a filing with the stock exchange, the company revealed its agreement to purchase a medium range product tanker with a deadweight tonnage (dwt) of approximately 49,990, built in 2013. The company anticipates the vessel to be incorporated into its fleet by the second quarter of FY25. Additionally, Great Eastern Shipping confirmed that the financing for the acquisition will be entirely covered by internal accruals. The company intends to utilize the vessel for the modernization and expansion of its fleet.
Jun 07, 2024, 2:15 pm IST
Dixon Technologies' Shares Surpass Rs.10,000 Milestone, Up 55% In 2024
Shares of Dixon Technologies reached an all-time high on Friday, surpassing the Rs.10,000 milestone for the first time. The stock has experienced gains in four out of five trading sessions this week. With Friday's notable surge, Dixon's market capitalization is now approaching Rs.60,000 crore. Previously, Dixon Technologies had achieved levels of Rs.20,000 before executing a stock split in 2021, dividing each Rs.10 share into five shares valued at Rs.2 each. Now, on a post-split basis, the stock has exceeded the Rs.10,000 mark.
Jun 07, 2024, 1:53 pm IST
Textile | Global retailers’ commentary underpins improved inventory position, optimistic outlook
Ashutosh Somani of JM Financial said, “In this note we seek to cover commentaries by global retailers across inventory position and demand outlook to present a clearer framework on Indian textile export demand. Global retailers continued their efforts to reduce excess inventory on books during their latest earning season. Global retailers witnessed an inventory decline during 1QCY24 and expect to maintain optimal stock positions. The global demand outlook for CY24 continues to be relatively stronger vis-à-vis CY2023 (Walmart sales to grow 3.5-4.5% in 2Q). In tandem with global retailers’ commentary, Indian Home textile and apparel exporters expect demand to improve in coming quarters. Any normalisation of demand in CY24 (led by hospitality / residential) amidst improved global retailers’ inventory position leaves headroom for export demand recovery by Indian exporters (refer positive demand guidance by Indian players in exhi 2), implying orders pick up in coming quarters. Extended runway for revenue growth over next 3 years (courtesy impending FTAs / ’China+1’), GOI’s increased focus on textile ecosystem (rebates/PLI) and deflation in commodity price (cotton price off highs and range bound) make a strong case for improvement in FY25 earnings trajectory . Deleveraged balance sheet (refer exhi. 10) of Indian textile players leave ample room for chasing revenue growth as / when structural demand drivers pick pace. Huge addressable market size / top-notch execution/ de-leveraged balance sheet bodes well for key players in the home textile/ apparel sector.”
Jun 07, 2024, 1:33 pm IST
CarTrade Tech | Auto supply normalisation to drive ads and lead generation
Sachin Dixit - Lead Analyst, Internet - JM Financial Ltd said, “New Auto in India witnessed an unprecedented supply-demand mismatch due to COVID. This was induced by demand for cars rising sharply due to safety concerns as buyers shunned public transport while supply got disrupted by labour shortage first, followed by chip shortage. With chip shortage easing in FY24 and automakers fulfilling the pent-up demand, we seem to finally be reaching a normalised state with reported inventory of around 45-50 days (Exhibit 1), similar to pre-COVID levels. As highlighted in our reports earlier, OEMs did lower their ad budgets due to their inability to service the existing demand. With supply normalising, we expect OEM ad budgets as well as dealer lead buying to grow faster than auto industry revenue growth in FY25. Furthermore, we reiterate expectations of sustained rebound in Remarketing segment while OLX would benefit from picking low-hanging fruits such as ads integration, price hikes and integration with Carwale classifieds. We roll forward to Jun’25 and reiterate ‘BUY’ with a TP of INR 1,120 (~45% upside), expecting the stock to sustain strength with long-term secular tailwinds.”
Jun 07, 2024, 1:00 pm IST
SRF | FY24 ARA: Focus on ramp-up of new specialty chemicals plants
Krishan Parwani - Lead Equity Research Analyst at JM Financial said "In its FY24 annual report, SRF’s management has outlined i) higher chemicals capex intensity from 2HFY25; ii) signs of pick up in the agrochemicals industry, iii) higher ref gas demand from domestic and Middle East markets to offset weakness in US market; iv) positive outlook for the pharma business; v) ramp-up of nine dedicated facilities commissioned in FY24, and vi) shift towards new PTFE grades and ambition to venture into new fluoropolymers. On the back of this, company expects chemicals business to register a ~20% growth in FY25 and a strong momentum beyond FY25. Apart from this, company is working on its cost structures in order to maximise the plant efficiency. On the packaging films, company indicated challenges to persist (especially on the BOPET side) on account of supply outweighing demand. However, commissioning of the aluminium foil should bode well. We maintain BUY (click here for deep dive report) with unchanged estimates and Sep’25 TP of INR 2,795."
Jun 07, 2024, 12:41 pm IST
RBI MPC Outlook By Murthy Nagarajan, Head-Fixed Income, Tata Asset Management
RBI governor retained its CPI forecast at 4.5 percent and upped its GDP growth forecast from 7 percent to 7.2 percent. RBI governor referred to higher commodity prices as risk to CPI inflation forecast. Normal monsoon is expected to bring down food inflation in the coming months. RBI MPC maintained its stance of withdrawal of accommodation and keeping rates unchanged. 2 members have voted against this resolution. Normal monsoon and fall in commodity prices in the coming months may led to change in stance in August monetary policy. Given fiscal deficit is expected to come down below 5 percent, due to RBI dividend of Rs 2.11 Lakh crores against Rs 85000 Crores expectation, long end bonds are expected to be well bid in the coming months. The ten year is expected to trade below 7 percent in the coming months.
Jun 07, 2024, 11:50 am IST
RBI Policy: Mr. Himanshu Jain, VP - Sales, Marketing and CRM, Satellite Developers Private Limited (SDPL)
"The RBI’s decision to maintain the key policy rates is a significant step towards fostering growth. We welcome the measures introduced, as they are poised to create a conducive environment for the real estate sector. The focus on maintaining liquidity and ensuring favorable lending rates will undoubtedly spur housing demand, benefiting homebuyers and developers alike. We are optimistic that these policies will further enhance market confidence and drive sustained growth in the real estate industry.
Jun 07, 2024, 11:48 am IST
RBI Policy: Ms. Anitha Rangan, Economist, Equirus
Status Quo for Seventh Time in a Row – Growth gives the elbow room for pause
RBI in its 2nd monetary policy for FY25, maintained policy rate at 6.5% as expected and maintaining withdrawal of accommodation. The key takeaway is a) shift in voting pattern from 5-1 to 4-2 (Dr. Ashima Goyal and Prof. Jayant Varma) are likely the dissenters b) Upwards revision in growth for FY25 to 7.2% from 7.0% while keeping inflation unchanged at 4.5% for the year. Overall, the key reason for maintaining policy rate is the uncertainty on the outlook of domestic inflation led by the food side.
According to RBI while core inflation is encouraging and at the lowest level in the current series, it is the food inflation that is playing spoilt sport, requiring vigilance. In addition, crude outlook remains uncertain. A reference was also made that external factors are watched for, to see the impact on domestic inflation. Overall, Indian economy is at an inflextion point with inflation on right track but work to be done.
The watch is from global side with global last mile inflation remaining arduous and geo-political risks. For Rbi as we have reiterated earlier growth remaining firm, monetary policy has elbow room to focus on price stability. The growth revision only reiterates that RBI is willing to wait and watch – RBI can watch for longer. RBI has the trinity of patience, perseverance and poise to support the economy!.
Jun 07, 2024, 11:46 am IST
RBI Policy: Mr. Samyak Jain, Director, Siddha Group
We commend the Reserve Bank of India's decision and its role in managing inflation and ensuring economic liquidity. The measures introduced are timely and reflect a balanced approach to sustaining economic growth while maintaining financial stability. The support for real estate is particularly encouraging fostering growth and development in the sector. These steps will help in boosting market confidence and providing the necessary impetus for the real estate industry to thrive.
Jun 07, 2024, 11:41 am IST
RBI Policy: Santosh Meena, Head of Research, Swastika Investmar Ltd
The RBI policy aligns with expectations and is not expected to have a major impact on the market. Attention will now shift to the formation of the new cabinet and global cues. Currently, the market appears strong, and there is a good chance that the bullish momentum will continue. The 20-DMA of 22,600 is likely to provide support to the Nifty, while the high of 23,338 is a key hurdle.
Jun 07, 2024, 11:39 am IST
Mr. Sanjay Palve, Senior Managing Director, Essar Capital Ltd, on today’s RBI Monetary Policy
Today's announcement by the Reserve Bank of India to keep the repo rate unchanged at 6.5% for the eighth consecutive time reflects a prudent and balanced approach to managing the country's economic health. By maintaining the repo rate, the RBI has provided stability in external benchmark lending rates, which is a welcome relief for borrowers as their EMIs will not rise. This decision supports a stable financial environment, allowing us to continue focusing on sustainable growth and strategic investments.
We remain committed to leveraging this period of stability to drive innovation and efficiency across our operations, contributing to India's economic resilience and progress. The upward revision of the FY25 GDP projection to 7.2% is also a positive indicator of our robust growth trajectory.”
Jun 07, 2024, 10:44 am IST
G E Shipping To Buy A Medium Range Product Tanker, Shares Rally
The Great Eastern Shipping Company Limited (G E Shipping) has contracted to buy a Medium Range product tanker of about 49,990 dwt. The 2013 built vessel is likely to join the company’s fleet by Q2 FY25. Shares of the company witnessed rally of over 2% to 1094.00 per share
GE Shipping current fleet stands at 43 vessels, comprising 29 tankers (6 crude carriers, 19 product tankers, 4 LPG carriers) and 14 dry bulk carriers aggregating 3.41 Mn dwt. The Company’s current capacity utilization is close to 100%.
The proposed ship will be financed entirely from internal accruals. The goal of the acquisition is modernization and expansion of the fleet.
Jun 07, 2024, 10:38 am IST
Top 5 Gainers and Losers Today
Stock Market Live Updates
Jun 07, 2024, 10:35 am IST
Rupee Opens Flat Against US Dollar As RBI MPC Retains Repo Rate At 6.5% For 8th Time
Indian rupee opened flat against the US dollar on June 7, 2024 as the 6-members monetary policy committee (MPC) led by RBI governor Shaktikanta Das decided to retain repo rates at 6.5% for 8th time in a row. Also, the committee maintained their policy stance to 'withdrawal of accommodation'. Meanwhile, Investors are also awaiting the release of US non-farm payroll data on the international front.
Rupee opened at Rs 83.47 against the US dollar, unchanged from Thursday's close, as per the Bloomberg data.
Jun 07, 2024, 9:52 am IST
SENSEX and NIFTY
Stock Market Live Updates
Jun 07, 2024, 9:46 am IST
Rupee Fell Mildly Against US Dollar Ahead Of RBI Policy Outcomes
The Indian rupee depreciated mildly against the US dollar to 83.48 in the early trade of June 6, compared to the previous closing print of 83.466. Investors will be focusing on RBI policy outcomes where a pause in repo rate is expected to 6.5% for the eighth time in a row.
Jun 07, 2024, 9:45 am IST
Top Losers
Stocks like HUL, L&T, IndusInd Bank, Kotak Bank, and ITC are among top laggards.
Jun 07, 2024, 9:45 am IST
Top gainers
Stocks like Wipro, Infosys, Tech Mahindra, Bajaj Finance, and Tata Steel are top gainers.
Jun 07, 2024, 9:45 am IST
Sensex Extend Rally
Sensex extended its gain to trade at 75,424.06 up by 349.55 points or 0.47%. The benchmark opened at 75,031.79, and touched an intraday high of 75,468.47.
Jun 07, 2024, 9:44 am IST
Nifty Performance
Nifty 50 surged by 120 points or 0.53% to trade at 22,941.40. The benchmark opened at 22,821.85, and have touched an intraday high and low of 22,946.75 and 22,789.05.
Jun 07, 2024, 8:46 am IST
Will Today's Monetary Policy Impact Market?
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services: In the near-term, the market is likely to be weighed down by the huge FII selling which has touched Rs 24960 crores cumulatively during the last three days. Therefore the largecaps in sectors like financials and IT where FIIs have huge assets under management may underperform. This trend will change when FIIs turn buyers, which is inevitable. Meanwhile long-term investors can accumulate these high quality largecaps were margin of safety is high in an otherwise highly valued market. There is excessive speculative activity in stocks where the floating stock is very low. Retail investors venturing into these speculative activities is highly risky. Today’s monetary policy meet is not expected to impact the market since any rate action by the MPC is unlikely.
Jun 07, 2024, 8:45 am IST
What To Buy On June 7th Trade?
Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd: This Friday morning, GIFT Nifty consolidates at 22920, following an 11% drop in India VIX to 16.85. The European Central Bank's rate cut, the first since 2019, shifts global policy focus to the Federal Reserve. Investors await the RBI MPC's outcome at 10:00 AM and key events like the US jobs report and PM Modi's swearing-in ceremony after the NDA's Lok Sabha win. Technically, Nifty looks positive above 22500, with crucial support at 21957 and the 200 DMA at 21128. Preferred trades include buying Nifty and Bank Nifty on dips, and bullish positions on stocks like GAIL, BIOCON, and NTPC. Suzlon is a buy at CMP 49, with targets up to 75 and a stop at 31 over 18-24 month.
Jun 07, 2024, 8:41 am IST
Will RBI Cut Rates As Global Central Banks Are Starting To Trim Rates?
All eyes in India will be on RBI who will announce the June monetary policy outcomes on Friday. The market and expert consensus is that RBI will hold rates with repo rate at 6.5% and continue on 'withdrawal to accommodation' stance. However, it will be keenly watched if RBI follows the pattern of other central banks who have started to trim their rates. On Thursday, both ECB and Bank of Canada have trimmed key rates owing to easing in economies. Also, Swiss National Bank has cut rates too. India's economy too has shown resilient growth with FY24 rate at 8.2%.
Jun 07, 2024, 8:12 am IST
Oil Prices Rise Amid OPEC+ Signals & ECB Rate Cut
Oil prices increased on Friday as OPEC+ members Saudi Arabia and Russia showed willingness to adjust output agreements, and the European Central Bank’s interest rate cut raised expectations for a similar move by the US. Brent crude futures climbed 16 cents, or 0.2%, to .03 per barrel, while US West Texas Intermediate crude futures also rose 16 cents, or 0.2%, to .71.
Jun 07, 2024, 8:11 am IST
GIFT Nifty Signals Flat Opening For Indian Market
Trends on GIFT Nifty suggest a flat start for the broader Indian market, with a slight decline of 7 points. Nifty futures were trading around the 22,911 level.
Jun 07, 2024, 8:11 am IST
Asian Markets Mixed; Nikkei Falls While Kospi & Hang Seng Gain
Asian markets traded mixed on Friday as investors anticipated crucial economic data from China and Japan, while also evaluating the European Central Bank’s recent rate cut. The Nikkei was down, but the Kospi and Hang Seng indices saw gains.
Jun 07, 2024, 8:10 am IST
US Market: S&P 500, Nasdaq Edge Lower Ahead Of Key US Payrolls Data
The S&P 500 and Nasdaq Composite closed slightly down on Thursday, just before a significant labor market report, stepping back from record highs hit in the previous session. In contrast, the Dow Jones Industrial Average saw a modest gain.
Both the S&P 500 and Nasdaq started the day strong, reaching new intraday record highs, but later dipped as technology stocks declined. The Dow rose 78.84 points, or 0.20%, to 38,886.17, while the S&P 500 lost 1.07 points, or 0.02%, to 5,352.96, and the Nasdaq Composite fell 14.78 points, or 0.09%, to 17,173.12.
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