Benchmark Indian equity indices closed higher on Monday. Asian markets were mixed at close as the Nikkei hit it’s highest figure in a month. Chinese exports missed analyst’s expectations, even as imports grew at the fastest pace in a decade. All eyes will now be on US consumer price report due on Thursday.
Benchmark Indian equity indices closed over 0.45% higher on Monday. The Sensex closed at 52,328.51, up 228.46 points, or 0.44%, while the Nifty was at 15,751.65, up 81.40 points, or 0.52%. Financial, pharma, metals and realty sectors were in red on the Nifty. Among broader indices, the BSE midcap and smallcap ended 0.78% and 1.38% higher, respectively. The Nifty midcap100 and smallcap100 closed at 1.24% and 1.56%, respectively. On the 30-share Sensex, Power Grid, NTPC, UltraTech, and 19 other stocks closed in green, while Bajaj Finance, Bajaj Finserv, HDFC twins, and four other stocks closed in red.
World Bank approves $500-mn programme to support Indian MSMEs
The World Bank said it has approved a $500 million program to support MSMEs in India to increase liquidity access for viable small businesses impacted by covid-19. The World Bank’s Board of Executive Directors has approved a $500 million program to support the Government of India’s nationwide initiative to revitalize the MSME sector, which has been heavily impacted by the covid-19 crisis. (Read here)
Narendra Solanki, head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers on market performance
“Indian markets started off marginally positive following mixed Asian markets cues as China’s May exports missed forecasts. China’s exports in dollar terms rose 27.9% in May compared to a year ago, which was lower than forecasts by analysts in a Reuters poll for a 32.1% year-on-year jump in exports. During the afternoon session, markets continued to trade in positive terrain as economic activity is likely to gather momentum as most states are gradually opening up since fresh covid cases have fallen. Also, sustained foreign fund inflow also supported the markets. Foreign investors have infused close to ₹8,000 crore into Indian equities in the first four trading sessions of June as risk-on sentiment improved amid rapidly falling new covid cases and robust corporate earnings. However, upside remain capped as India’s rank slipped by two places from last year to 117 on the 17 Sustainable Development Goals (SDGs) adopted as a part of the 2030 agenda by 193 United Nations member states in 2015.”
Only 15% of India’s workforce covered by health and wellness programmes: Redseer
As the pandemic puts focus on employee health, only 72 million or 15% of India’s overall workforce is covered with corporate health and wellness programs, said management consultancy Redseer on Monday.
India’s overall workforce includes 477 million individuals, 85% of which are unorganised blue collared employees, according to Redseer estimates. (Read here)
Metal, financials, realty trail
SBI invests in payments startup Cashfree
City-based payment gateway, Cashfree, on Monday said it has raised strategic funding from India’s largest lender, State Bank of India (SBI), at a post-money valuation of $200 million.
The company will be utilise the funds to ramp up its payment infrastructure and invest in growth. (Read here)
Average spot power price up 10% to ₹2.83/unit in May at IEX
Average spot power price has increased over 10% in May to ₹2.83 per unit compared to same month a year ago at Indian Energy Exchange (IEX) due to low base effect.
The average market clearing price was ₹2.57 per unit in day ahead market (DAM) in May 2020, as per the IEX data.
The average spot power price in DAM at IEX was ₹3.34 per unit in May, 2019.
According to the power ministry data, electricity consumption had slumped nearly 15% in May 2020 due to lower commercial and industrial demand and showed impact of lockdown restrictions.
Adani, Power drives gains in utilities index
ICICI Pru Life announces ₹867cr for policyholders in FY21
ICICI Prudential Life Insurance on Monday declared its highest-ever annual bonus of ₹867 crore for the policyholders for FY21.
“ICICI Prudential Life Insurance has announced an annual bonus of ₹867 crore for all eligible participating policyholders for FY2021. The bonus declared is the highest ever by the company till date and is also 10 per cent higher than the bonus announced in the last fiscal” it said in a release.
Bonus is the share of profits generated by the company’s participating policyholder’s funds, which are added to their guaranteed maturity benefits, thus enhancing the corpus.
All participating policies in force as of 31 March 2021, are eligible to receive this bonus and will be added to the policyholders’ benefits, said the insurer.
Financial creditors may recover ₹55-60,000 cr via IBC in FY22: Icra
After a dull FY21, financial creditors could realize about ₹55,000-60,000 crore in FY22 through successful resolution plans from the Insolvency and Bankruptcy Code (IBC), estimates rating agency Icra Ltd. In FY21, the total realizations were at ₹26,000 crore, almost a quarter of what it was in FY20, it said. That said, the increase in the resolution amount in FY22 would depend on the expected resolution of a large housing finance company which is awaiting the NCLT’s approval but is also under litigation in the higher courts, said Abhishek Dafria, vice-president and group head (structured finance) at Icra.
RBI to soon clarify on new auditor appointment norms
Amidst the rising criticism of its recent circular on appointing auditors by large financial institutions, the Reserve Bank on Friday said it will shortly issue a set of clarifications that various stakeholders have sought.
While industry body CII has been very vocal against the new norms that mandate joint audit and also cap the tenure at three years among many other restrictions on large players, domestic auditors and independent observers have welcomed the same saying the new circular issued on 26 April will go a long way in levelling the field for all by curtailing the brute dominance of the handful few.
Flipkart is in talks to raise $3 bn from SoftBank, sovereign wealth funds
Flipkart, the Indian e-commerce giant controlled by Walmart Inc., is in talks to raise at least $3 billion from investors including SoftBank Group Corp. and several sovereign wealth funds, according to people familiar with the matter.
The startup is targeting a valuation of about $40 billion and is in discussions with Singapore’s GIC Pte., Canada Pension Plan Investment Board and the Abu Dhabi Investment Authority, said the people, asking not to be named because the discussions are private. Japan’s SoftBank, which had previously backed Flipkart before selling its stake to Walmart, could invest $300 million to $500 million of the total through its Vision Fund II, one of the people said. (Read here)
Yes Bank gains on fundraise plans
Yes Bank plans to raise funds in Indian or foreign currency by issuing debt securities, it said on Monday.
A meeting of the board of directors of Yes Bank will be held on Thursday, 10 June, 2021, to consider, approve and seek shareholders’ approval for borrowing/raising funds, the bank said in a regulatory filing without quantifying the amount.
The bank said it will raise funds in “Indian/foreign currency by issue of debt securities including but not limited to non-convertible debentures, bonds, medium term note.”
Yes Bank stock traded 5.75% up at ₹14.52 apiece on BSE.
Commercial vehicle sales to grow by 23-28% in current FY: Crisil
Sale of commercial vehicles is likely to grow in the range of 23%-28% in the current fiscal year compared with the earlier estimate of 37-38% since demand will be impacted by the second wave of covid infections, according to ratings agency Crisil. (Read here)
Kevadiya in Gujarat to be an EV city
In what will showcase India’ pivot towards electric vehicles (EVs), Kevadiya in Gujarat is being developed as an electric vehicle city. The town also boasts of having the 182-meter statue of Sardar Vallabhbhai Patel popularly known as Statue of Unity. Mint earlier reported about the union government exploring a plan whether an entire city’ mass transportation system such as buses can be run on hydrogen and use battery storage, provided the per km cost of operations is equal to or less than conventional fuel sources such as diesel. While addressing a World Environment Day event on Saturday, Prime Minister Narendra Modi spoke about plans underway to develop Kevadiya as an electric vehicle city. (Read more)
L&T receives contracts worth ₹1,000-2,500 cr
L&T’s different departments have secured significant projects in the ₹1,000-2,500 crore range, according to the company’s classification. These include contracts from Bangalore Water Supply & Sewerage Board, Bhabha Atomic Research Centre at Tarapur Maharashtra, and for the construction of Sports Infrastructure facilities in the Kalinga Stadium at Bhubaneswar, Odisha. (Read here)
Lupin gets USFDA nod for HIV-1 treatment drugs
Lupin has received USFDA approval for Emtricitabine and Tenofovir Disoproxil Fumarate Tablets, to market a generic equivalent of Gilead Sciences’ Truvada® Tablets. The product will be manufactured at Lupin’s facility in Nagpur, Indi, the pharma company said in a regulatory filing.
Emtricitabine and Tenofovir Disoproxil Fumarate Tablets are indicated in combination with
other antiretroviral agents for the treatment of HIV-1 infection.
PM’s address at 5 pm
MRF trades lower after Q4 result
MRF reported profit before tax at ₹430.6 crore compared ₹291.8 crore a year ago. The company also reported a one-time tax credit of ₹451.5 crore in Q4FY20. The company’s board recommended a final dividend of ₹94 per share of ₹10 each. The board has also recommended a special dividend of ₹50 per share in connection with the 60th annual general meeting, MRF said ina regulatory filing.
Adani Ports, Tata Motors drive Nifty gains
HSBC appoints Hitendra Dave as India CEO
Credit growth slower than when India was under complete lockdown
Despite of the low base effect of the previous year when India was under a complete lockdown, credit growth was slower as on 21 May, at 6%.
“This can be ascribed to risk aversion and regional lockdown imposed by states this year to curb the spread of coronavirus amid the second wave of the pandemic that started in April 2021 and continued in May 2021,” Care Ratings said in a report. (Read here)
Govt likely to fast track stake divestment in New India Assurance: CNBC TV18
Offer for sale for 10% stake likely in September 2021 to meet minimum public shareholding norms.
Nifty broader market indices at this hour
Nifty Pharma index only sectoral index in the red
Oil slides after topping $70
Oil pulled back after hitting fresh multi-year highs on Monday, as investors awaited the outcome of this week’s talks between Iran and world powers over a nuclear deal that is expected to boost crude supplies.
Brent crude futures for August fell 38 cents, or 0.5%, to $71.51 a barrel, after earlier hitting $72.27, their highest since May 2019. U.S. West Texas Intermediate crude for July touched $70 for the first time since October 2018 but reversed course to be at $69.32 a barrel, down 30 cents, or 0.4%.
DHFL insolvency case: Piramal Group’s resolution plan is accepted with few conditions, says CNBC TV 18
Bajaj Finance investors need to trim expectations as second covid wave hits
MUMBAI: Indian consumers did not shed their frugality in the first three months of FY22, which means that prospects for consumer lenders aren’t as bright as anticipated earlier. Bajaj Finance Ltd has become the first lender to indicate that investors need to tone down their expectations.
In an early update on the quarter, the lender has estimated that its asset under management (AUM) will take a hit of Rs4,000 crore-Rs5,000 crore in the current financial year and much of this would be felt in the first quarter. The reason is that lockdowns were large scale and strict in May, with most large states imposing curbs following the second wave coronavirus infections. (Read here)
Gold slips as firmer dollar offsets easing US bond yields
Gold prices slipped on Monday as an uptick in the dollar dented the metal’s appeal, although lower U.S. bond yields and prospects of a prolonged accommodative interest rate environment limited losses.
Spot gold was down 0.3% at $1,884.79 per ounce as of 05:11 GMT, after rising more than 1% in the previous session, as US May non-farm payrolls fell short of expectations.
US gold futures eased 0.2% to $1,888.10 per ounce.
Financials, pharma trail
PNB Housing Finance surges over 100% in nine sessions on Carlyle’s fund infusion
Shares of PNB Housing Finance Ltd have surged over 100% in the last nine trading sessions following announcement by US private equity giant The Carlyle Group and banking veteran Aditya Puri to invest in the firm.
The stock was currently trading at ₹880.56. It has surged 118% since 25 May. (Read here)
Rupee rises 12 paise to 72.87 against US dollar in early trade.
Top gainers at this hour
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments on Nifty’s trajectory
“Any dip or intra day correction should be looked at as an opportunity to accumulate long positions on the index. The support has been upgraded from 15,300 to 15,500. The next target for the Nifty is 16000 so the risk is to reward ratio is favorable.”
HSBC names Hiten Dave as CEO, HSBC India
Gold prices drop for second time in 2 days, down ₹7000 from record high
Gold and silver rates in India edged lower amid muted global cues. On MCX, gold futures were down 0.08% to ₹48,953 per 10 gram while silver futures were down 0.3% to ₹71,308 per kg. MCX gold has support at ₹48,020 levels while resistance remains near ₹49,100, say analysts. In India, gold rates turned volatile after they hit near five-month high of ₹49,800 last week. In August last year, gold had risen to a record high of ₹56,200. (Read here)
India reports 100,636 new covid-19 infections, 2,427 deaths
India reported on Monday a daily rise in new coronavirus infections of 100,636 cases over the past 24 hours, while deaths rose by 2,427.
The tally of infections now stands at 28.9 million, while the death toll has reached 349,186, health ministry data showed.
Bitcoin surges to trade above $36,700; ether rises over 4%
Cryptocurrencies were trading with gains today after declining over the weekend amid a cryptocurrency crackdown in China and a cryptic tweet from Elon Musk that hinted at a potential split with Bitcoin.
According to Coindesk data, Bitcoin was trading above $36,700, up nearly 2% in the last 24 hours. Other digital coins like Ethereum surged over 4% to $2,800 while dogecoin was trading at $0.38. (Read here)
The Sensex opened at 52,231.38, up 131.33 points, or 0.25% while the Nifty opened at a record high of 15,725.10, up 54.85 points, or 0.35%. All sectors were in green at market open.
Petrol, diesel prices hiked again. Check latest rates in your city
Petrol and diesel prices in India were hiked for the second consecutive day on 7 June by 27-28 paise per litre, according to oil marketing companies (OMCs).
Petrol price in Delhi crossed ₹95-per-litre mark on Monday. In Delhi, petrol is priced at ₹95.37 a litre, while diesel costs ₹86.28. (Read here)
Delhi Metro resumes services after nearly 3 weeks; with 50% capacity
The Delhi Metro resumed services on Monday after a hiatus of nearly three weeks in view of the improved Covid situation in the national capital, but with 50% seating capacity and no provision for standing travel for commuters, officials said.
Delhi Metro Rail Corporation (DMRC) services were fully suspended since May 20 in view of the Covid-induced lockdown, which was first imposed on April 19 and then successively extended by the city government. (PTI)
Markets are likely to be volatile on Monday while trends in SGX Nifty suggest a positive opening of Indian benchmark indices. In Friday, the BSE Sensex ended at 52,100.05, down 132.38 points or 0.25%. The Nifty was at 15,670.25, down 20.10 points or 0.13%. (Read here)
Stocks to Watch
RIL, Maruti Suzuki, Tata Steel, DHFL, among other stocks could be in the news today. (Read here)
Tata Steel and Mining named resolution applicant for Rohit Ferro-Tech
Tata Steel unit Tata Steel and Mining Ltd has been declared as the successful resolution applicant by the committee of creditors for acquisition of Rohit Ferro-Tech Ltd on 5 June, subject to it obtaining necessary regulatory approvals including approval from the National Company Law Tribunal.
DHFL resolution case: NCLT to pass order on Monday
The National Company law Tribunal is expected to pronounce the order on Monday on the resolution plan submitted by Piramal Capital & Housing for the stressed Dewan Housing finance Ltd. According to the court documents, the case related to the final approval for DHFL resolution plan is expected to come up for hearing at the NCLT Mumbai bench.
Reliance Infra to raise ₹550 cr from promoters, VFSI Holdings to pare debt
Anil Ambani’s Reliance Infrastructure Ltd (RInfra) on Sunday said that its board has approved raising a sum of ₹550.56 crore by preferential allotment of up to 88.8 million shares and/or warrants convertible into shares of the company to promoter group and VFSI Holdings Pte. Ltd, an affiliate of Värde Investment Partners LP.
The funds raised would be utilized for long-term resources, for general corporate purposes, and to fund growth as well as to reduce debt, the company said in a statement. (Read here)
Paytm to lend founder Sharma’s firms ₹743 crore ahead of IPO
One97 Communications Ltd, the operator of the Paytm online payments app, is set to extend ₹743 crore funding to two companies owned by founder Vijay Shekhar Sharma ahead of its $3 billion initial share sale planned this year. (Read here)
Asian markets see steady start
Asian stocks were steady early Monday after their US peers climbed toward a record, aided by an American jobs report that eased some fears about the economy running too hot and stoking troublesome inflation.Shares fluctuated in Japan and edged up in South Korea and Australia. US equity contracts were slightly lower. The S&P 500 advanced and the dollar fell with Treasury yields Friday, after a report showed U.S. job growth picked up in May but missed estimates. The dollar held the drop, while yields ticked upward.
S&P 500 futures dipped 0.1% as of 9:29 am in Tokyo. The index rose 0.9% Friday
Nasdaq 100 futures fell 0.1%. The gauge climbed 1.8%
Japan’s Topix index rose 0.1%
Australia’s S&P/ASX 200 Index added 0.1%
South Korea’s Kospi index increased 0.2%
Hong Kong’s Hang Seng Index futures gained 0.6% earlier
The SGX Nifty was down 0.33%
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