Buzzing | Shares of Bharat Heavy Electricals (BHEL) fell almost 18 percent after company reported a consolidated net loss of Rs 1,036.32 crore in QFY21 as against a net loss of Rs 1,532.18 crore, YoY. Total income rose to Rs 7,245.16 crore, from Rs 5,166.64 crore, YoY.
Ruchi Soya to raise up to Rs 4,300 crore
Ruchi Soya Industries, which is owned by Baba Ramdev-led Patanjali Ayurveda, has filed draft document with SEBI to launch a follow-on public offer (FPO) for raising up to Rs 4,300 crore. The FPO is being launched to meet the SEBI norm of minimum public shareholding of 25 percent in a listed entity.
Gold prices at 1-1/2-week low on dollar strength as Fed meeting looms
Gold prices slipped on Monday to their lowest in more than a week, weighed down by a stronger dollar, while investors awaited cues from the Federal Reserve policy meeting this week with recent spikes in U.S. consumer prices seen as a temporary blip. Spot gold was down 0.6 percent at $1,864.58 per ounce, its lowest since June 4. US gold futures fell 0.6 percent to $1,867.60 per ounce.
Bitcoin rises 9.8% to $39,035
Bitcoin surged 9.8 percent to USD 39,035.47 on Sunday, adding USD 3,492.71 to its previous close. Bitcoin, the world’s biggest and best-known cryptocurrency, is up 40.7 percent from the year’s low of USD 27,734 on Jan. 4. Ether, the coin linked to the ethereum blockchain network, surged 7 percent to USD 2,532.77 on Sunday, adding USD 165.77 to its previous close. Read here.
Market Watch: Manoj Murlidharan, VP Derivatives, Religare Broking
– Buy Kotak Mahindra Bank with a stop loss of Rs 1,750 and a target of Rs 1,880.
– Buy Mphasis with a stop loss of Rs 1,920 and a target of Rs 2,130.
Opening Bell | The Indian equity benchmark indices opened flat Monday amid mixed global cues. The Sensex gained 17.58 points, or 0.03 percent to open at 52,492.34, while the Nifty opened 7.95 points, or 0.05 percent lower at 15,791.40. Broader indices traded mixed and the smallcap index gained, while midcap index traded lower. Among sectors, selling in banks, metals, financials and auto stocks, while IT sector was trading in the green.
World stocks near record high as investors await dovish Fed act
Global shares held firm near record highs on Monday while US bond yields flirted with three-month lows as investors expect the Federal Reserve to stick to its dovish mantra later this week. Japan’s Nikkei rose 0.35 percent while MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.1 percent. Activity was limited with the region’s largest markets – China, Hong Kong and Australia – closed for a holiday. Globally, equity markets were basking in the prospects of a broadening economic recovery from the coronavirus pandemic and anticipation of continuity in dovish monetary policy from the US Federal Reserve.
Blackstone-backed Sona Comstar to launch IPO today
Auto component manufacturer Sona Comstar will launch an initial public offer (IPO) today at a price band of Rs 285-291 per share. The issue will close on June 16. The Rs 5,550-crore offer comprises a fresh issue of Rs 300 crore and an offer for sale of up to Rs 5,250 crore by Singapore VII Topco III Pte Ltd. The issue market lot size is 51 shares and a retail-individual investor can apply for up to 13 lots. Read here.
Madhavi Arora, Lead Economist, Emkay Global Financial Services.
Industrial production super-surged in April, growing 134% amid favorable base effects despite weakening momentum. On a sequential basis, April IIP degrew 12%, reflecting hit on production activity as major states like Maharashtra and Delhi led the localized lockdowns. We note Maharashtra has 18% share in India’s manufacturing GVA. The May IIP sequential growth may also be impacted owing to more pronounced localised lockdowns state wise.
However, assuming Q1FY22 sees the maximum Covid-II heat and as larger proportion of the population are vaccinated, some pent-up demand could push manufacturing and overall GDP growth back up in H2FY22. We see FY22 GDP growth at 9.0%. We reckon the nascent and patchy K-shaped growth recovery post Covid-I came with a potentially scarring and divided labor market amid sub-optimal effective fiscal policy stimulus. The recovery ahead may again be led by capital and profits and not improving labor markets and wages.
Shyam Metalics to launch Rs 909 cr-IPO today
Steel manufacturer Shyam Metalics & Energy is set to launch its initial public offer (IPO) today. The company has fixed the price band for the issue at Rs 303-306 per share. The Rs 909-crore public issue comprises a fresh issue of up to Rs 657 crore, and an offer for sale (OFS) up to Rs 252 crore by promoters. The three-day offer will close on June 16. Investors can put minimum bids for 45 equity shares and in multiples of 45 equity shares thereafter. Read here.
Market Watch: Prakash Diwan, Market Expert
On Sona Comstar | The area of focus for this company is extremely aligned to the moves towards EVs globally. It is a very good, high-quality business. It is quite positive. It looks qualitatively a good business.
On Sun TV | I don’t have a very positive view now. Generally also the business will see probably a little bit of a shift to other players as far as market share is concerned.
Founder Chairman Ramachandra Galla decides not to seek reappointment. Jayadev Galla to become Chairman of the Board
— CNBC-TV18 (@CNBCTV18Live) June 14, 2021
FPIs invest Rs 13,424 crore in Indian markets in June so far
Overseas investors pumped in a net Rs 13,424 crore so far in June as risk-on sentiment improved with declining COVID-19 cases and hopes of the early opening of the economy. Depositories data showed that foreign portfolio investors (FPIs) invested Rs 15,520 crore in equities during June 1-11. At the same time, FPIs withdrew Rs 2,096 crore from the debt segment during the period under review. This comes following a net withdrawal of Rs 2,666 crore in May and Rs 9,435 crore in April.
BSE, NSE suspend trading in DHFL shares
The Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) have suspended the trading in equity shares of Dewan Housing Finance Corporation Limited (DHFL). The ban will come into effect from June 14.
Forex reserves cross $600 bn mark for first time
The country’s foreign exchange reserves crossed the USD 600 billion mark for the first time after increasing by USD 6.842 billion in the week ended June 4, RBI data showed. The reserves surged to a record USD 605.008 billion in the reporting week, helped by a rise in foreign currency assets (FCA), a major component of the overall reserves, as per weekly data by the Reserve Bank of India (RBI).
Four IPOs to hit markets this week; companies eye Rs 9,123 crore
The IPO market is getting back on track after a lull of two months, with four companies launching their initial share-sales thisweek to raise Rs 9,123 crore collectively. Shyam Metalics and Energy Ltd and Sona BLW Precision Forgings (Sona Comstar) will launch their IPOs on Monday, while Krishna Institute of Medical Sciences and Dodla Dairy will be open for public subscription on Wednesday, information with exchanges showed.
Zydus Cadila receives tentative approval from USFDA for Brivaracetam Tablets
Zydus Cadila has received tentative approval from the USFDA to market Brivaracetam Tablets, in the strengths of 10 mg, 25 mg, 50 mg, 75 mg, and 100 mg (US RLD: Briviact Tablets). Brivaracetam is used to treat partial-onset of seizures (epilepsy). The drug will be manufactured at the group’s formulation manufacturing facility at the SEZ, Ahmedabad.
Oil holds near multi-year highs amid demand recovery
Oil prices held near multi-year highs on Monday, underpinned by an improved outlook for demand as increased COVID-19 vaccinations help lift travel curbs. Brent crude was up 14 cents, or 0.2%, at $72.83. It rose 1.1% last week and hit the highest since May 2019 of $73.09 on Friday. US West Texas Intermediate was also up 14 cents, or 0.2%, at $71.05 a barrel, after reaching the highest since October 2018 at $71.24 on Friday and rising 1.9% on the week.
Asian Markets | Asian markets traded mixed Monday morning with multiple major markets in the region are closed for holidays. In Japan, Nikkei 225 rose 0.45 percent while the Topix index gained 0.25 percent, South Korea’s Kospi dipped marginally. MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.13 percent lower. Markets in Australia, mainland China and Hong Kong are closed on Monday for holidays.
Wall Street | US equities ended higher at the close on Friday led by gains in the Technology, Consumer Services and Consumer Goods sectors. The Dow Jones Industrial Average rose 0.04 percent, or 13.36 points, to 34,479.60, while the S&P 500 index added 0.19 percent, or 8.26 points, to 4,247.44. The NASDAQ Composite index closed 0.35 percent, or 49.09 points, higher at 14,069.42.
First up, here is quick catchup of what happened in the markets on Friday
Indian benchmark equity indices ended at record closing highs on Friday led by IT, metal and pharma stocks, as more states eased pandemic restrictions. The Sensex ended 174.29 points, or 0.33 percent, higher at a record closing high of 52,474.76; while the Nifty gained 61.60 points, or 0.39 per cent, to settle at a new closing high of 15,799.35. Broader markets were also in the green for the day with the midcap index up 0.2 percent and smallcap index up 0.6 percent. Among sectors, Nifty Metal index gained the most followed by Nifty IT, Nifty Pharma and Nifty Auto. Selling was seen in banks, financials and FMCG sectors.