Sensex near 53K, Nifty above 15.8K; FMCG, pharma drag

India EV sales to grow at 26% in FY21-23: Fitch

The recently announced electric vehicle (EV) incentives by India along with high fuel prices will be supporting factors for stronger adoption of EVs over 2020-2023, leading to an average annual growth rate of 26 per cent, Fitch Solutions said on Tuesday.

However, it said the economic impact of covid-19 pandemic and limited domestically produced EVs will prove a challenging barrier to overcome. “We believe the focus on EV promotion in Union Budget will improve longer-term outlook for EV sales but will continue to fall way short of the country’s goal of electrifying all new vehicles sold by 2032,” said Fitch.

Covaxin phase trial 3 efficacy at 80-82%

The efficacy of Covaxin in phase 3 trials is in the 80-82%, RedBox India said in a tweet citing people familiar with the matter.

Tata Consumer outlier on FMCG index

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Acme Solar ropes in Brookfield Renewable for jointly setting up 450 MW project

Acme Solar Holdings Ltd has roped in Brookfield Renewable for jointly setting up a 450 megawatt (MW) solar project in Rajasthan, as part of its playbook to sell equity stake in its projects.

“ACME, India’s leading solar IPP, today announced closure of a deal with Brookfield Renewable, a global owner and operator of renewable power assets, to build a 450MWp Solar Project in Rajasthan,” India’s largest pure-play solar platform said in a statement on Tuesday. (Read here)

Adani group stocks surge for second day in a row

Shares of Adani group companies were in demand on Tuesday, with four of the six listed stocks hitting the 5% upper circuit for the second day in a row on the BSE. At 12:30 pm, Adani Power Ltd, Adani Transmission Ltd, Adani Green Energy Ltd, and Adani Total Gas Ltd were locked in the 5% upper circuit. Shares of Adani Enterprises Ltd gained 0.9% to ₹1,555.25 apiece, while those of Adani Ports and Special Economic Zone Ltd rose 3% to ₹752.50. (Read here)

Clean Science, Shriram Properties, GR Infra gets SEBI nod for IPO

Clean Science and Technology, Shriram Properties and GR Infraprojects has received Securities Exchange Board of India’s approval to raise funds via initial public offering.

All three firms have filed draft red herring prospectus with SEBI in April. (Read here)

TCNS Clothing Co’s muted recovery outlook weighs on investor sentiment

For retail companies, the second covid wave has pushed the anticipated recovery further away. TCNS Clothing Co. Ltd is a victim of these tough circumstances.

Its March quarter results announced on Monday don’t inspire confidence. True, the company saw steady improvement in each quarter in the financial year 2021. Even so, revenue growth for the March quarter was subdued at just about 1% year-on-year to Rs221 crore. Here, online momentum remained strong with sales more than doubling over the last year. The Aurelia brand did well, reporting 11% revenue growth. On the other hand, premium brands, W and Wishful saw their respective revenue drop 2% and 23%. (Read here)

Venky’s India gains

Venky’s (India) Ltd was trading at ₹3,079.40 apiece, up 6.72% at 12:42 pm. Over the past two months, the stock has gained 106% compared to 10% Sensex gains, accoridng to media reports. The packaged foods company reported q net prift of ₹78 crore despite the impact of a bird flu outbreak in end-2020.

NCLT clears Kalrock-Jalan resolution plan for Jet Airways

Maruti, Tata Motors drive gains

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HPL Electric gains

HPL Electric & Power Ltd was trading at ₹61.60, up 6.48% at 12:12 pm. The meter and electrical equipment manufacturing company, has recived approval from private discoms to install its new range of smart meters with Narrow Band-Internet of Things (NB-IoT) communications technology. The meters are both 4G and 5G compatible, the company said in a regulatory filing.

OMCs hike petrol, diesel prices again

Transportation fuel prices continued their upward trajectory, with state-run oil marketing companies (OMCs) increasing petrol and diesel prices again on Tuesday.

Petrol and diesel prices were increased by 28 paise per litre and 26 paise per litre, respectively, and were selling at record highs of ₹97.50 per litre and ₹88.23 per litre at Indian Oil Corporation Ltd’s outlets in the national capital. Diesel and petrol prices have already breached the ₹100 mark in several parts of India.

Sensex heatmap

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Shikpa Medicare gains

Shilpa Medicare Ltd’s stock was trading at ₹549.30, up 2.22% at 11:53 am. The company has received approval for pediatric dose Paracetamol oral thin film Molshil.

Maruti Suzuki gains

Maruti Suzuki India was trading at ₹7198.00, up 4.30% at 11:30 am. Leading auto manufacturer Maruti Suzuki India Ltd has said that it will increase the prices of its cars from July. In a regulatory filing, the company said that it has become imperative to pass on some impact of additional cost to customers. (Read here)

PSU banks gain

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Jet Airways gains

Jet Airways’ stock was trading at ₹99.45 apiece, up 4.96% at 11:21 am. NCLT Mumbai bench will decide on Jet Airways’ resolution plan today.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments on Nifty’s trajectory

“Yesterday the Nifty closed above 15,700 which blocked the avenue for the markets to be weak in the short term. We have resumed the uptrend and can target 16,000-16,100 as the next level for the index. Keeping 15,400 as a support for the market, a buy on dips approach will be appropriate to adopt in this market.”

Rupee falls 10 paise to 74.20 against US dollar in early trade

The Indian rupee slumped 10 paise to 74.20 against the US dollar in opening trade on Tuesday as rising crude oil prices weighed on investor sentiment. At the interbank foreign exchange, the rupee opened lower at 74.18 against the dollar, then fell further to 74.20, registering a fall of 10 paise over its previous close. On Monday, the rupee had settled at 74.10 against the US dollar. (PTI)

Shyam Metalics shares’ post-allotment GMP suggests strong listing

Shyam Metalics IPO allotment is finalised and shares of the company will be credited into the Demat Account of the lucky allotees on 23rd June. However, if we look at the Shyam Metalics GMP (Grey Market Premium) it is still at high ₹130. According to market observers, this high share price premium in the grey market means strong listing as financials of the IPO is also strong. (Read here)

Covid: India reports lowest cases in over three months, active cases dip below 7 lakh

The second wave of covid-19 seems to be abating in the country as only 42,640 fresh infections were in the last 24 hours, the lowest daily spike after 91 days, according to the Union Health Ministry said on Tuesday. The country is witnessing a continuous decline in fresh coronavirus cases for the past few weeks. (Read here)

Cement prices improve across India in June; southern India sees maximum hike

Cement prices have improved across India in June. The latest dealers channel check by Kotak Institutional Equities showed that all-India prices rose 4% to ₹376 per 50-kilogram bag, on a month-on-month (m-o-m) basis. This was led by an 11% m-o-m rise in prices in southern India to ₹415 per bag.

Dr. Reddy’s gets USFDA nod for Icosapent Ethyl Capsules, 1 gm

Dr. Reddy’s Laboratories Ltd has announced the launch of Icosapent Ethyl Capsules, 1 gram approved by the US Food and Drug Administration (USFDA). It is apporved as an adjunct

to diet to reduce triglyceride (TG) levels in adult patients with severe hypertriglyceridemia.

Sun Pharma settles patent regulation dispute

Sun Pharmaceutical Industries Ltd, along with one of its unit, said that the company has reached an agreement with Celgene Corp. (Celgene), a wholly-owned unit of Bristol Myers Squibb, to resolve the patent litigation regarding submission of an Abbreviated New Drug Application (ANDA) for a generic version of Revlimid® (lenalidomide capsules) in the US. Celgene will grant Sun Pharma a license to Celgene’s patents required to manufacture and sell (subject to USFDA approval) limited quantity of generic lenalidomide capsules in the US beginning sometime after March 2022.The license will also allow Sun Pharma to manufacture and sell an unlimited quantity of generic lenalidomide capsules in the US beginning 31 January 2026. As a result of the settlement, all Hatch-Waxman litigation between Sun Pharma and Celgene, regarding the Revlimid® patents, will be dismissed. The subject to customary regulatory approvals.

Welspun Corp eyes ₹5 bn fundraise

Welspun Corp. was trading at ₹150.95 a piece, up 4.86% at 9:52 am. The company’s board will consider renewing the enabling resolution of the shareholders for raising of funds by way of private placement up to ₹5 billion by issuing commercial papers or NCDs.

Petrol, diesel prices again touch historic highs after today’s rate hike

Petrol and diesel rates were hiked again on Tuesday, taking fuel prices across the country to a new record hi, according to a price notification by state-owned fuel retailers. Fuel rates were left unchanged on Monday. In Delhi, the prices of petrol and diesel increased by 28 paise and 26 paise respectively. The price hike led to a litre of petrol at 97.50 per litre and diesel at ₹88.23 in the national capital. (Read here)

Market opening

Benchmark Indian indices opened nearly 0.60% higher on Tuesday. The Sensex opened at 52,885.04, up 310.58 points, or 0.59%, while Nifty was at 15,840.50, up 94.00 points, or 0.60%. All sectors opened in green. On the 30-share Sensex, Bharti Airtel, Tata Steel, ONGC, and 23 other stocks opened in green, while Bajaj Finserv, Tech Mahindra, Bajaj Auto, and PowerGrid opened in red.

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Market pre-opening

The Sensex was at 52,885.04, up 310.58 points, or 0.59% at market pre-opening, while Nifty was at 15,840.50, up 94.00 points, or 0.60% at 9:11 am.

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CDSCO subject expert committee to meet on Covaxin phase III, other vaccine candidates

Subject expert committee of the Central Drugs Standards Control Organisation will meet today, according to Redbox India. The committee will review the phase 3 data of Covaxin and meet on other vaccine candidates including Cadila’s ZyCoV-D and that of Biological E.

Jaiprakash Associates posts 86.2% drop in net profit

Jaiprakash Associates Ltd (JAL) on Monday reported a decline of 86.2% in its consolidated net profit to ₹424.41 crore for the fourth quarter ended 31 March 2021.

The company had posted a net profit of ₹3,068.10 crore in the January-March quarter a year ago, JAL said in a BSE filing.

However, its revenue from operations was up 34.18% at ₹2,517.20 crore during the quarter under review as against ₹1,876.03 crore in the corresponding period last fiscal, the company said.

PNB Housing to voter on poposed preferential issue

PNB Housing Finance will hold an extraordinary general meeting today, to allow the mortgage financier to conduct the voting process for its ₹4,000 crore deal with investors led by private equity firm Carlyle. PNB Housing Finance had received the green signal to conduct the EGM from the Securities Appellate Tribunal on Monday after the Securities and Exchange Board of India told the company to halt its share sale. (Read here)

Grofers to hike tech pay by 33%, promises ‘hefty ESOP allocation’

Grofers on Monday said it will offer a 33 per cent hike in salary to its tech team effective July, along with a “hefty ESOP allocation” as the online grocery delivery platform looks to retain staff and woo more tech talent.

The SoftBank-backed company, which plans to launch an initial public offering (IPO), also hinted that it has secured a new funding round. (Read here)

Bank credit grows by 5.74%; deposits by 9.73%

Bank credit grew by 5.74% to ₹108.43 lakh crore and deposits rose by 9.73% to ₹153.13 lakh crore in the fortnight ended 4 June 2021, RBI data showed. Bank advances stood at ₹102.55 lakh crore and deposits at ₹139.55 lakh crore in the fortnight ended June 5, 2020, according to RBI’s Scheduled Banks’ Statement of Position in India as on 4 June 2021, released on Monday.

SAT upholds Sebi’s fines on Rana Kapoor, two other entities

The Securities Appellate Tribunal (SAT) has upheld regulator Sebi’s orders imposing a fine of ₹1 crore on former Yes Bank chief executive Rana Kapoor and a penalty of ₹50 lakh each on two other entities.

The entities—Yes Capital (India) Pvt Ltd and Morgan Credits Pvt Ltd—were penalised by Sebi in March 2021 for not making the requisite disclosures pertaining to the encumbrance of shares.

Market outlook

Markets are likely to be steady on Tuesday while trends in SGX Nifty suggest a positive opening of Indian benchmark indices. On Monday the BSE Sensex ended at 52,574.46, up 230.01 points or 0.44%. The Nifty was at 15,746.50, up 63.15 points or 0.40%.

Govt proposes ban on ecom misselling, fraudulent flash sales

The Centre on Monday proposed amendments to the Consumer Protection (E-Commerce) Rules, 2020 and sought public comments on banning fraudulent flash sales and mis-selling of goods and services on e-commerce platforms, and also on making registration of these entities mandatory with DPIIT. Ban on misleading users by manipulating search results, and appointment of chief compliance officer and resident grievance officer are some of the other amendments being proposed. (PTI)

Bitcoin steadies in Asia trading after Monday’s plunge

Bitcoin stabilised in Asian trading on Tuesday morning a day after a statement from China’s central bank reaffirming the ongoing crackdown on cryptocurrencies in the country sent the world’s largest token to a two-week low.

Bitcoin was last up 3.17% at 32,600, having dropped more than 10% on Monday. Ether, the second-biggest crypto currency, was up 3.54% at 1,950 after hitting a five-week low the day before.

Monday’s sell-off was sparked by an announcement from the Peoples Bank of China saying it had summoned China’s largest banks and payment firms urging them to crack down harder on cryptocurrency trading

Asian markets gain

Most Asian stocks rose Tuesday, tracking a U.S. equity rebound as the prospect of gradual policy tightening tempers some of the concerns about the Federal Reserve’s hawkish tilt. Treasuries and the dollar clawed back some losses.

Japan outperformed, while Australia also advanced. Hong Kong fluctuated and China opened with subdued gains.

S&P 500 futures were little changed as of 10:27 am in Tokyo. The index advanced 1.4%

Nasdaq 100 futures were steady. The gauge rose 0.6%

Topix index climbed 2.4%

Australia’s S&P/ASX 200 Index added 1.2%

Kospi index rose 0.5%

Hang Seng Index rose 0.3%

Shanghai Composite Index rose 0.3%

SGX Nifty was up 0.21%

Wall Street recovers

Wall Street rebounded as global stocks rose from a four-week low as investors banked on economic growth, while the US dollar sank from Friday’s 10-week high, boosting oil prices.

Yields on 10-year Treasuries reversed earlier losses after sliding to a four-month low of 1.354%. The benchmark note was still trading well below its recent mid-point range of about 1.6% after traders reacted to Federal Reserve expectations for a rate hike.

The Dow Jones Industrial Average surged, recovering from Friday’s rout as it notching its strongest session in over three months to end 1.76% higher. The S&P 500 jumped 1.40% and the Nasdaq Composite rose 0.79%.