Stock Market Highlights Today: RIL, financials and weak global cues weigh on Sensex; Nifty slips below 15,700; Infibeam tanks 3%, Tata Steel climbs 4%
17 min readBenchmark indices continued to fall for the second day on Friday as weak global cues kept investors on the sidelines. Rapid pace of vaccination in India capped the losses. Banking stocks were at the forefront of selling. Auto and financial services stocks als dragged indices. However, metal stocks were in demand, providing support to the indices. The 30-share pack Sensex dropped 182.75 points or 0.35 per cent to close at 52,386.19. Its broader peer NSE Nifty fell 38.10 points or 0.24 per cent to 15,689.80.
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Wall Street opens higher as banks, energy stocks rebound
The Dow Jones Industrial Average rose 35.6 points, or 0.10 per cent, at the open to 34,457.51. The S&P 500 rose 8.6 points, or 0.20 per cent, at the open to 4,329.38.
Clean Science Tech IPO subscribed 93.4 times on final day
The initial public offer (IPO) of Clean Science Technology was subscribed 93.4 times on the final day of bidding on Friday. Out of the total 1,23,02,672 shares on offer, investors bid for 1,14,92,30,160 shares.
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GR Infraprojects IPO subscribed 102.6 times on final day
The initial public offer (IPO) of GR Infraprojects was subscribed nearly 103 times on the final day of bidding on Friday. Out of the total 81,23,594 shares on offer, investors bid for 83,33,04,538 shares.
Forex reserves rise by $1.013 billion to record high of $610.012 billion
In the previous week ended June 25, 2021, the reserves had jumped by $5.066 billion to reach $608.999 billion.
Rupee recovers by 7 paise to settle at 74.64 against US dollar
On Thursday, the rupee had settled at 74.71 against the US dollar.
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“Nifty again bounced after touching its demand zone and closed the day at 15699 with minimal loss and formed a Doji candlestick pattern on the daily chart suggesting indecision in the market. A Doji formation near the good support also shows that we may see the extension in the current bounce once Nifty crosses above the 15730 zone.”
– Rohit Singre, LKP Securities
“The equity market is turning risk-averse and side-lined. The IT sector also turned bearish as the initial earnings results did not meet the market’s expectations. While the focus of domestic investors has shifted from secondary to the attractive primary market IPOs, affecting the trading liquidity in the equity market, which we believe it to be for short-term.”
– Vinod Nair, Geojit Financial Services
Two out of every three stocks on Sensex closed in red
Closing Bell: RIL, financials drag Sensex 179 pts lower; Nifty at sub-15,700 level, Infibeam tanks 3%, Tata Steel climbs 4%
Price as on 09 Jul, 2021 03:29 PM, Click on company names for their live prices.
HG Infra wins big order worth Rs 1,93 crore from highway authority of India. The company has been trading in negative
Price as on 09 Jul, 2021 03:19 PM, Click on company names for their live prices.
Sanofi India and GSK have received approval for their Phase 3 clinical study in India to assess the safety, efficacy and immunogenicity of their adjuvanted recombinant-protein COVID-19 vaccine candidate. Both are trading flat to negative
Price as on 09 Jul, 2021 03:11 PM, Click on company names for their live prices.
Air conditioning and commercial refrigeration major Blue Star is hopeful of business to improve from the second quarter of 2021-22 after being hit hard by the second wave of COVID-19, coupled with a ‘bad summer season’, according to company Chairman Shailesh Haribhakti. Having learnt lessons from the pandemic on the need to mitigate geographical concentration and seasonality risks, the company is now focussing to grow its exports, and is also planning to participate in the production linked incentive (PLI) schemes announced by the government through a newly formed subsidiary.
Price as on 09 Jul, 2021 03:05 PM, Click on company names for their live prices.
How the rupee has fared against the dollar so far
Hotel & hospitality stocks mostly in red
Price as on 09 Jul, 2021 02:54 PM, Click on company names for their live prices.
PBoC cuts reserve ratio by 0.5% percentage point; Will maintain prudent monetary policy; to keep liquidity reasonably stable
Price as on 09 Jul, 2021 02:53 PM, Click on company names for their live prices.
Shares of Sugar stocks were buzzing on Friday, with multiple sugar counters hitting the upper circuit, as the industry experts are anticipating an upward movement in sugar prices to Rs 36-37 per kg in coming months. Sugar stocks like Dwarikesh Sugar Industries and Dalmia Bharat Sugar Industries surged 5 per cent each to Rs 78.40 and Rs 475, respectively on Thursday. Magadh Sugar and Energy jumped 4 percent to Rs 340, whereas EID Parry India gained 2 per cent to Rs 417.70.
Price as on 09 Jul, 2021 02:28 PM, Click on company names for their live prices.
Mixed bag for auto stocks: Tata Motors, Ashok Leyland up; TVS Motor, M&M, Eicher Motors, Bajaj Auto in red
Price as on 09 Jul, 2021 02:13 PM, Click on company names for their live prices.
BSE, NSE issue guidelines for companies under corporate insolvency resolution process
In a bid to address information asymmetry among investors, stock exchanges, BSE and NSE, on Friday came out with a framework for dealing with companies undergoing corporate insolvency resolution process. In the recent past, the exchanges have come across instances where the approved resolution plan provides for delisting of the company or write off/cancellation/extinguishment of existing equity shares without any payout or consideration to the existing shareholders.
BSE acted as catalyst to help create $3 trillion in wealth: Chauhan
Leading stock exchange BSE has acted as a catalyst for investments and helped in creation of USD 3 trillion wealth since it was set up in 1875, its chief Ashishkumar Chauhan said on Friday. BSE, formerly Bombay Stock Exchange, is the world’s fastest stock exchange with a speed of 6 microseconds.
BSE largecap top losers at 1 pm
Tractor sales volumes to grow 3-6% this fiscal: Ind-Ra
Despite the impact of Second Covid wave, tractor sales volume is expected to grow in low-mid single digits of 3-6 per cent in 2021-22, mainly on a higher base following the 27 per cent growth witnessed in FY21, India Ratings and Research (Ind-Ra) said on Thursday.
Alembic Pharmaceuticals has received final approval from the US health regulator for Erlotinib tablets used in the treatment of cancer. The approved product is therapeutically equivalent to the reference listed drug product Tarceva tablets of OSI Pharmaceuticals, LLC.
Price as on 09 Jul, 2021 01:16 PM, Click on company names for their live prices.
JSW Steel shares up after the private steelmaker Friday reported 39 per cent growth in its crude steel output to 4.10 million tonne (MT) during the quarter ended June 2021. The company had produced 2.96 MT in the April-June quarter of 2020-21, JSW Steel said in a statement.
Price as on 09 Jul, 2021 01:15 PM, Click on company names for their live prices.
D-Street in two minds on the Big Bull’s Rs 7,800 crore bet. Here’s why
Ashoka Buildcon is trading over 2% up. The construction company got a Letter of Award worth Rs 482.3 crore from IRCON International for provision of supply, erection, testing and commissioning of electro mechanical system which includes 33/11kv & 11/0.433kv GIS Substations, 33kV & 11kv power cable network, DG sets, ventilation and control system, lighting, UPS system, fire fighting system and SCADA system, and associated works complete in all respect as required for Tunnel T-14 & T-15 + T-40/41 on Dharam-Katra Section of USBRL Project (J&K).
Price as on 09 Jul, 2021 12:41 PM, Click on company names for their live prices.
Edelweiss Financial Services surged 7.57%. as ace investor Rakesh Jhunjhunwala increased his stake in Edelweiss Financial Services. According to the regulatory filing by the company on BSE, the Big Bull held 1,51,25,000 equity shares or 1.61 per cent stake in the company, as of June 30, 2021. His stake in the company is worth over Rs 125 crore.
Price as on 09 Jul, 2021 12:38 PM, Click on company names for their live prices.
Here are the top gainers in ferrous metal stocks. Metal stocks shining on a day the benchmark indices have been in deep red
Price as on 09 Jul, 2021 11:36 AM, Click on company names for their live prices.
Shares of Kitex Garments have surged over 13 per cent in just two sessions on the back of a couple of reasons. The Telangana State government has extended an invitation to Kitex Garments for setting up an apparels unit in the state. Telangana Government has cited its lucrative Textiles and Apparels Policy.
Price as on 09 Jul, 2021 11:34 AM, Click on company names for their live prices.
BHEL is trading flat to negative. The company has emerged as the L-1 bidder in a RS 10,800-crore tender of NPCIL
Price as on 09 Jul, 2021 11:32 AM, Click on company names for their live prices.
Tata Power trending up. The company won a contract worth Rs 400 crore from the Kerala State Electricity Board Limited (KSEBL) to develop 64 MW solar rooftop project for domestic consumers across all districts of Kerala, company said in the release.
Price as on 09 Jul, 2021 11:28 AM, Click on company names for their live prices.
3 Tata Group stocks among 3 long and 3 short ideas for next week
First miss in a year likely to drag TCS in the short term. Despite the Q1 miss, analysts are confident about TCS’ FY22 growth prospects and said the IT major is in a better position than peers to handle cost pressures.
Price as on 09 Jul, 2021 11:19 AM, Click on company names for their live prices.
CDSL trading up. The leading depository said the number of active demat accounts opened with it has reached 4-crore mark. CDSL, which began operations in 1999, had 1 crore active demat accounts in September 2015, crossed 2 crore in January 2020, 3 crore in January 2021 and 4 crore in July 2021.
Price as on 09 Jul, 2021 11:16 AM, Click on company names for their live prices.
GHCL up 0.79%. The chemicals and textiles manufacturer said its secured creditors have approved the scheme of demerger of the company’s inorganic chemicals and textile businesses. The company’s shareholders and unsecured creditors had already approved the scheme of demerger in April this year. The company will now approach the NCLT for its approval, GHCL said.
Price as on 09 Jul, 2021 11:05 AM, Click on company names for their live prices.
Shriram Transport Finance trading up. The leading NBFC said it has received Rs 312.50 crore from its promoter Shriram Capital Finance in lieu of allotment of preference shares and warrants.
Price as on 09 Jul, 2021 11:04 AM, Click on company names for their live prices.
SBI, PNB, BoB trading in green; IOB, Central Bank, IDFC Bak in the red
Price as on 09 Jul, 2021 11:00 AM, Click on company names for their live prices.
Broader indices outperforming headline peers
Broader market indices were trading higher, outperforming their headline peers in morning trade. Nifty Smallcap was up 0.24 per cent while Nifty Midcap advanced 0.20 per cent. Broadest index on NSE, Nifty 500 was down 0.27 per cent. Mphasis, Dhani Services, Tata Elxsi, Edelweiss Financial Services, Bharat Dynamics and Rain Industries were gainers from the space while APL Apollo, Sterlite Tech, Carborundum Universal, Concor, Coforge and Trent were under selling pressure.
How deep the downtrend will depend on institutional behaviour and the retail investor response. The latter is a powerful market determining factor now. Without a doubt, the valuations are excessive and there is room for markets to correct significantly. ‘Buy on dips’ may not prove to be a good strategy now. Profit booking and increasing the cash component in the portfolio are advisable.
– VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Intraday Pick from Reliance Securities
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Buy or Sell: Stock ideas by experts for July 09, 2021
Union Bank of India trading in red. The lender said it has accepted bids to raise up to Rs 1,150 crore by issuing Basel III-compliant bonds. The bank is issuing Basel III-compliant debt instruments in the nature of debentures eligible for inclusion in tier 2 capital of Rs 500 crore with green shoe option of up to Rs 650 crore on private placement basis.
Price as on 09 Jul, 2021 09:46 AM, Click on company names for their live prices.
Coal India trading flat to negative. The state-owned cola producer said it has inked a pact for purchase of 11 Russian rope shovels for nearly Rs 1,462 crore. Electric rope shovels play a vital role in opencast mines for loading of material.
Price as on 09 Jul, 2021 09:45 AM, Click on company names for their live prices.
Tata Consultancy Services trading 1.19% down. The country’s largest software firm TCS reported a 28.5 per cent jump in June quarter net profit at Rs 9,008 crore, and called out the domestic business as a drag which restricted its overall growth because of the second wave of COVID-19.
Price as on 09 Jul, 2021 09:41 AM, Click on company names for their live prices.
Stocks in focus: Bharat Dynamics, Tata Motors, CDSL and more
23 out of 30 Sensex stocks open in red
Fear gauge India VIX rises 2.58%
Opening Bell: Sensex sheds 200 points, Nifty below 15,700; Bandhan Bank drops 2%, Sobha rises 3%
Pre-open session: Sensex drops 60 points, Nifty below 15,700
SGX Nifty signals a muted start
Nifty futures on the Singapore Exchange traded 13 points, or 0.08 per cent, lower at 15,696.50, signaling that Dalal Street was headed for a muted start on Friday.
Tech View: Nifty50 may head to 15,600 level
Nifty50 on Thursday faced selling from the word go. It fell below the immediate support range at 15,800-15,779 with ease and eventually formed a bearish candle on the daily chart. Analysts said the bulls’ failure to take the index above the 15,900 level has triggered weakness. In case the index fails to recover, it may reach levels around the 15,635-600 zone, they said.
Tokyo stocks open lower following US falls
Tokyo stocks opened lower on Friday following losses of US shares on concerns over the Delta variant of the coronavirus. The benchmark Nikkei 225 index tumbled 1.35 percent or 380.78 points to 27,737.25 at the open, while the broader Topix index fell 1.21 percent or 23.18 points to 1,897.14.
US stocks settled lower
US stocks were broadly lower on Thursday as bond yields continued to fall and investors turned cautious following the market’s recent run of record highs. The Dow Jones Industrial Average fell 259.86 points, or 0.75 per cent, to 34,421.93. The broad S&P500 index lost 37.31 points, or 0.86 per cent, to 4,320.82. The technology-focused Nasdaq Composite fell 105.28 points, or 0.72 per cent, to 14,559.79.
Rupee declines by 7 paise to 74.71; extends losses for 3rd day
Falling for the third day in a row, the rupee weakened further by 9 paise to end at 74.71 against the US currency on Thursday as weaker domestic equities weighed on the forex market sentiment. The US dollar traded strong against other Asian currencies after the minutes from the last Federal Reserve meeting indicated a tighter monetary policy ahead.
Sensex, Nifty on Thursday
Equity benchmark Sensex slumped 486 points on Thursday, largely in tandem with a global selloff as rising cases of the COVID-19 Delta variant in multiple countries and hawkish comments from the US Federal Reserve spooked investors. The 30-share BSE index ended 485.82 points or 0.92 per cent lower at 52,568.94, while the broader NSE Nifty dropped 151.75 points or 0.96 per cent to 15,727.90.
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