Global weakness drags Sensex 159 points, Nifty below 10,700; Infosys, Titan up 2%
02 July 2018
Market Outlook by Jayant Manglik, President, Religare Broking:
Nifty remained volatile and lost over half a percent, citing weak global cues. It started on feeble note and gradually declined as the session progressed however sudden rebound in selective index majors marginally trimmed the losses in latter half. Mostly sectoral indices traded in tandem to the benchmark index and ended lower.
We reiterate advice to keep a close watch on global markets for further signal. Nifty is not giving away any cue while continue fall on broader front has pushed the bulls completely on the back foot. At the same time, it has result in oversold positions too so possibility of intermediate rebound can't be ruled out. Traders should restrict their trades in such scenario.
IPO: Bharat Hotels, which runs five-star properties under 'The LaLiT' brand, has filed draft prospectus with capital markets regulator to garner Rs 1,200 crore through its initial share-sale.
The initial public offer (IPO) comprises sale of fresh equity shares to the tune of Rs 1,200 crore, according to the draft papers filed with the Securities and Exchange Board of India (Sebi).
Proceeds of the issue will be utilised towards repayment of certain loans availed by the company for other general corporate purposes, reports PTI.
USFDA Approval: Strides Shasun announced that it's wholly owned subsidiary Strides Pharma Global Pte Ltd has received final approval for Ibuprofen tablets USP, 200 mg (OTC) from the United States Food & Drug Administration (US FDA).
Ibuprofen is a generic version of Motrin IB tablets, 200 mg, of Johnson & Johnson Consumer, Inc.
The drug is used to relieve pain from various conditions such as headache, dental pain, muscle aches, or arthritis. It is also used to reduce fever and to relieve minor aches and pain due to the common cold or flu. Ibuprofen is a nonsteroidal anti-inflammatory drug (NSAID).
Global Update: European stocks traded sharply lower amid political uncertainty in Germany and trade concerns between the European Union and the US. France's CAC, Germany's DAX and Britain's FTSE were down 0.5-1 percent at the time of writing this article.
Asian markets also closed in the red with China's Shanghai Composite losing 2.5 percent ahead of implementation of tariffs from both United States and Beijing later in the week. Japan's Nikkei and South Korea's Kospi also fell more than 2 percent.
Market Closing: Benchmark indices reversed half of Friday's gains to end the first session of the week lower by half a percent on Monday, dragged by global weakness due to trade tensions and political uncertainty in Germany.
The 30-share BSE Sensex fell 159.07 points to 35,264.41 and the 50-share NSE Nifty shed 57 points to 10,657.30. About 1,643 shares declined against 966 advancing shares on the BSE.
HDFC Bank, Reliance Industries, ITC, Tata Motors, Bharti Airtel, Adani Ports and NTPC were losers.
Infosys rallied over 2 percent and TCS gained 0.2 percent.
Nifty Midcap index fell 117 points.
Adani Enterprises, Jindal Steel, Nalco, JSW Steel, Indiabulls Rea Estate, Avanti Feeds, Bata India, Indiabulls Housing, SREI Infrastructure, 8K Miles, Just Dial, PFC, REC, Idea Cellular, Granules, InterGlobe Aviation, L&T Finance, M&M Financial and DHFL fell 2-20 percent.
CG Power, JM Financial, Motilal Oswal, Cadila Healthcare, Jubilant Foodworks, HEG and Graphite India gained 2-6 percent.
Rupee Update: The Indian rupee weakened by 26 paise to 68.73 against the dollar on demand for American currency.
June sales number: SML Isuzu sold 1564 vehicles in June 2018 against 1320 vehicles in June 2017.
At 15:15 hrs SML Isuzu was quoting at Rs 772.95, up Rs 18.60, or 2.47 percent.
Macquarie maintains outperform on Godrej Consumer: Shares of Godrej Consumer Products touched 52-week high of Rs 1,241.95, rising 1.4 percent as Macquarie maintained outperform rating with a target of Rs 1,285 per share.
The research house sees strong recovery in household insecticides.
The company's EPS estimates ahead by 7-9% for FY19-20, while the stock is trading at a 37x FY20 earnings, it added.
Buzzing: Graphite India and HEG shares prices were locked at 5 percent upper circuit each for the second consecutive session after Macquarie initiated coverage on both.
At 15:00 hours IST, Graphite share was quoting at Rs 882.05 and HEG at Rs 3,477.05 on the BSE.
The global brokerage house has initiated coverage with an Outperform call on both stocks, with a target price at Rs 1,260 and Rs 4,810 per share, respectively.
On Graphite India, it said the market should remain tight with constraints across the supply chain.
It expects current price strength & margins to sustain for longer and forecasts 267 percent YoY growth in EPS FY19e, the global research house said, adding the company with 12 percent global market share is well placed.
On HEG, Macquarie said the company with 10 percent global market share is on solid footing and expects 147 percent YoY growth in EPS FY19e.
Despite 8x surge in the stock in 1-year, structural lift is not fully appreciated, it feels.
TVS Motor in focus: TVS Motor Company sold 3.13 lakh units in the month of June 2018, a growth of 15 percent compared to 2.73 lakh units sold in year-ago month.
The total sales were ahead of Nomura expectation of 2.99 lakh units.
The company said its 2-wheeler sales increased 12.1 percent year-on-year to 3.01 lakh units and scooter sales jumped 13.6 percent to 1.02 lakh units.
Exports during the month grew by 48.6 percent to 65,971 units while 3-wheeler sales shot up 140.9 percent to 12,413 units compared to year-ago month.
Auto sales: Atul Auto said its total sales in June 2018 grew by 17 percent to 3,847 units from 3,288 units in same month last year.
Market Update: The market is off its day's low as the recovery is led by ICICI Bank and Infosys that gained 1.5 percent each. European markets also showed some recovery from day's low amid politics and trade concerns.
The 30-share BSE Sensex fell more than 100 points while the Nifty is trading above 10,650 levels.
Vedanta gained more than 1.5 percent as billionaire Anil Agarwal-led Vedanta Resources plc will delist from the London Stock Exchange after promoter group made a cash offer to buy out about 33 percent of the public shareholding in the company.
Rating Upgrade: Credit Suisse has upgraded forging company Bharat Forge to Outperform rating with a target price of Rs 750 per share as it feels the near-term traction is solid which represents entry point.
"US commercial vehicle slowdown can be easily absorbed," the global brokerage firm said, adding the cyclicality has reduced over the years as company brought down share of commercial vehicle to 45 percent.
According to Credit Suisse, FY19 is likely to be a very strong year as all major engines seem to be firing.
US Class 8 order inflow is still strong and it is increasing content per vehicle, the research house said.
Titan in focus: Morgan Stanley has upgraded jewellery-to-watch maker Titan Company to Overweight from Equal-weight with a target price at Rs 1,080 per share as it feels the risk-reward appears favorable at current valuations.
It said recent correction offers a compelling entry point for long-term investors. The stock price corrected 10 percent in last two months.
"Titan is one of our favorite plays on urban discretionary consumption growth in India. We see an earnings CAGR of 29 percent for FY18-20," the research house said.
The management expects 20 percent jewellery revenue CAGR over 5 years.
Management Interview: ITC management told CNBC-TV18 that the company will invest Rs 25,000 crore across various businesses in next 5 years, including Rs 10,000 crore in food processing units across India.
It will ramp-up capacity of hotels at 24 properties to 2,500 rooms by 2023, and is evaluating options for foraying into healthcare and the decision is likely in 2019, it said.
The company further said it has invested around Rs 2,500 crore in Telangana since 2014 and will invest Rs 800-1,000 crore into Medak food processing unit. "GST is a big game-changer for the industry and we continue to stay bullish on the Indian economy."
USFDA Approval: Aurobindo Pharma has received final approval from the US health regulator to manufacture and market Ibuprofen capsules, used to relieve pain and reduce fever. The approved product is a generic equivalent of Pfizer's Advil Liqui-Gels Capsules. The product will be launched in September 2018.
"The company has received final approval from the US Food and Drug Administration (USFDA) to manufacture Ibuprofen capsules OTC, 200 mg," Aurobindo Pharma said in a BSE filing.
Quoting Nielsen data, Aurobindo Pharma said the estimated market size of ibuprofen capsules OTC is USD 164 million for the twelve months ending March 2018.
Market Update: The market is off its day's low in the afternoon amid selling pressure in global peers on German politics and trade tensions.
The 30-share BSE Sensex fell 209.76 points to 35,213.72 and the 50-share NSE Nifty declined 76.10 points to 10,638.20.
The Nifty Bank also fell more than 200 points while the Nifty Midcap dropped over a percent.
HDFC Bank, ITC, L&T, IOC, HDFC and Reliance Industries are top five contributors to the Nifty's fall while IT stocks like TCS and Infosys outperformed.
Buzzing: Shares of Bharat Financial Inclusion added 1.6 percent intraday as company completed the second securitisation transaction of Rs. 815.75 crore.
The company has completed the second securitisation transaction of Rs 815.75 crore in FY19. With this transaction, the company has completed two securitisation transactions worth Rs 1,365.82 crore in FY19.
On June 28 it has completed the first securitization transaction of Rs 550.07 crore in FY19.
Board Meet: Cheviot said that the board of directors of the company will meet on July 10 to consider issue of fully paid-up bonus shares to the members of the company.
Delist of Vedanta Resources from LSE: Billionaire Anil Agarwal-led Vedanta Resources plc will delist from the London Stock Exchange after promoter group made a cash offer to buy out about 33 percent of the public shareholding in the company.
Volcan, the investment arm of Agarwal family, made an offer to buy public float at a price of 825 pence per share, 27.6 percent higher than closing of 647 pence on June 29, the company said in a filing to the London Stock Exchange.
"In addition to the offer price, shareholders will also be entitled to receive the previously announced dividend of USD 0.41 per Vedanta share in respect of the twelve months ended March 31, 2018, which when taken together with the offer price represents a total value of 856 pence per share," it said.
The move is to simplify the corporate structure of Vendata and its subsidiaries, it said.
Agarwal said Vedanta was the first Indian company to be listed on the London Stock Exchange in 2003, reports PTI.
New MD at SBI: Arijit Basu has taken charge as the Managing Director of State Bank of India.
Basu will handle the areas of commercial credit and IT and will also hold additional charge of Stressed Assets Resolution Group. Prior to this role, he was designated as Deputy Managing Director (DMD) in the bank.
Interest rates on small saving: The government has kept interest rates on small saving schemes unchanged for July-September period.
Oil prices slide on increase in supply: Oil prices fell by more than 1 percent on increase in supply from top exporter Saudi Arabia and as there are some signs of an economic slowdown in Asia which may dent the outlook for demand.
Brent crude oil futures were at $78.30 per barrel, down 1.17 percent, from their last close.
US West Texas Intermediate crude futures were down 0.77 percent, at $73.55 a barrel, after rising more than 8 percent last week.
Europe Update: Shares in Europe opened sharply lower as investors question the stability of the German government and wider trade links between the European Union and the US.
France's CAC, Germany's DAX and Britain's FTSE fell 1 percent each.
Market Update: The market extended losses in afternoon after further sell-off in Asian peers ahead of implementation of US tariffs on $34 billion of Chinese products later this week.
The Sensex loses around 300 points while the China's Shanghai Composite, Japan's Nikkei and South Korea's Kospi fall more than 2%
All sectoral indices traded in the red except IT while the Nifty Midcap index loses over a percent.
Recommendation: After a flat debut of 3 percent, the stock price of RITES rose to Rs 218 per share in the morning trades. The stock was up 19.5 percent from its IPO price of Rs 185 at 12:38 hours IST.
"Assuming moderate revenue CAGR of around 10 percent and PAT CAGR around 8 percent through FY17-20E, the stock at current price is valued at 10x FY20E earnings, which appears to be justified considering its unique business model, steady growth and healthy return ratios. Hence we continue to remain positive on the stock," Arafat Saiyed, AVP-Research, Reliance Securities told Moneycontrol.
New Power Capacity Addition: Tata Power said its 100 percent subsidiary Tata Power Renewable Energy (TPREL) commissioned 100 MW (50 MW x 2) solar capacity in Anthapuramu Solar Park, Andhra Pradesh.
With this, the overall operating renewable capacity of TPREL now stands at 2,215 MW in India.
"The sale of power from this solar plant has been tied up under a 25 year Power Purchase Agreement with Solar Energy Corporation of India (SECI)," Tata Power said.
This is part of the implementation of the MNRE scheme for developing grid connected solar power capacity of Jawaharlal Nehru National Solar Mission (JNNSM) Phase II, Batch-III of the Government of India through Viability Gap Funding (VGF) Mode.
NSE signs strategic partnership agreement with Nasdaq: The National Stock Exchange of India has signed strategic partnership agreement with the Nasdaq.
"The National Stock Exchange of India (NSE) and Nasdaq have officially signed an agreement for Nasdaq to deliver a customized real-time clearing, risk management and settlement technology to one of the world's largest stock exchanges," Nasdaq said in release published on its website.
In addition to the post-trade agreement, Nasdaq has also signed an agreement with NSEIT to utilize NSEIT's capability in implementations and project augmentation globally, it added.
Nasdaq said further, the two exchanges signed a Memorandum of Understanding (MOU) to explore business opportunities across listings, corporate and market services and data and innovations in products, processes and technology.
The new post-trade technology will replace NSE's current clearing and settlement system operated by the National Securities Clearing Corporation Limited (NSCCL), a wholly owned subsidiary of NSE, it added. "The technology will provide a state-of-the-art architecture enabling all asset classes being cleared and settled in one system. These changes will increase efficiency, effectiveness of the market, supported by a modern, flexible and efficient technology that reduces risks in the post-trade area alongside international best practices and standards."
Management Interview: ?Rajiv Bajaj , MD of Bajaj Auto told CNBC-TV18 that Nigeria has rewarded with the highest growth in terms of motorcycle exports.
"For the first quarter last year, it was about 39,000 vehicles totally. This time it is a 104,000 vehicles so, that's been outstanding. For now, I can only say that in the first quarter we have recorded a 31 percent growth overall in exports," he said.
At about 540,000 vehicles this is our highest-ever quarterly exports in the history of the company, he added.
"If we were to simply extrapolate it, it suggests that we should be hitting something 2 million at the end of the year," Bajaj said.
ITC in focus: Cigarette-to-FMCG major ITC will look at taking over Telangana unit of Ballarpur Industries, reports CNBC-TV18 quoting Cogencis.
June tractor sales: Escorts said total sales grew by 72.8 percent to 9,983 units in June 2018 compared to 5,776 units in same month last year.
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The Nifty50 closed the week on a weak note with the index losing by about 1 percent in a volatile week weighed down by weak global cues, selling by foreign institutional investors (FIIs), rising crude oil prices as well as weakness in rupee, which touched an all-time low.
Market Update: The market remained under pressure as Asian stocks extend losses with China's Shanghai Composite, South Korea's Kospi and Japan's Nikkei falling nearly 2 percent as investors keep an eye on trade tensions between the US and its trading partners, most notably China.
The Sensex slipped 245.74 points to 35,177.74 and the Nifty dropped 81.40 points to 10,632.90. About two shares declined for every share rising on the BSE.
All sectoral indices traded in the red barring IT.
M&M June sales number: Mahindra and Mahindra (M&M) has reported 22 percent rise in its June tractor sales number at 40,529 units against 33,093 units in June 2017.
Its domestic tractor sales was up 24 percent at 39,277 units, while exports was down 13% at 1,252 units.
Buzzing: Share price of Thermax added 4.3 percent as company won an order worth Rs 340 crore.
The company has concluded an order of Rs 340 crore from a leading Indian steel manufacturer for a specially designed boiler, electric turbo generators and ancillary equipment for their production facility in Maharashtra, India.
The specially designed boiler will use waste gases produced in the steel manufacturing process to generate high-pressure steam for power generation using high-efficiency reheat cycle.
The scope of work includes design, engineering, procurement, manufacturing, supply, installation and commissioning.
Buzzing: Shares of Ashok Leyland rose 2.5 percent intraday as company reported robust June sales number.
The company total June sales numbers increased by 28 percent at 15,791 units against 12,333 units, in the same month last year.
Also, company's April-June 2018 sales numbers rose 48 percent at 42,127 against 28,498 units in April-June 2017.
Its light commercial vehicle (LCV) sale numbers increased by 45 percent at 4,534 units and M&HCV sale numbers rose 22 percent at 11,257 units.
Market Update: The market extended losses in morning with the Sensex falling more than 200 points. Asian stocks are under pressure with China's Shanghai losing over a percent ahead of a looming deadline when tariffs from both Washington and Beijing are expected to take effect.
The Nifty Midcap index traded in line with frontliners, falling more than half a percent.
The 30-share BSE Sensex fell 223.65 points to 35,199.83 and the 50-share NSE Nifty slipped 74.80 points to 10,639.50. About 1,133 shares declined against 874 advancing shares on the BSE.
CCI Approval: Mobile tower firm Bharti Infratel today said it has received approval of the fair trade regulator CCI for its proposed merger with Indus Towers Ltd.
In April this year Bharti Airtel, Idea Cellular and Vodafone Group had announced an agreement for merger of Indus Towers and Bharti Infratel to create the largest mobile tower operator in the world outside China with over 163,000 towers across 22 telecom service areas.
"...approval of Competition Commission of India (CCI) has been received for the proposed merger of Bharti Infratel Ltd and Indus Towers Ltd," the mobile tower firm said in a regulatory filing.
The combined company will own 100 percent of Indus Towers. Indus Towers is currently jointly owned by Bharti Infratel (42 percent holding), Vodafone (42 percent), Idea Group (11.15 percent) and Providence (4.85 percent).
Post the deal, Bharti Airtel and Vodafone will jointly control the combined company, and the transaction is expected to close before the end of 2018-19, subject to statutory approvals.
Manufacturing PMI: India’s manufacturing conditions improved in June at the strongest pace since December 2017, supported by the sharpest gains in output and new orders in 2018 so far.
Reflecting greater production requirements, firms were encouraged to engage in purchasing activity and raise their staffing levels. On the price front, input cost inflation was the sharpest since July 2014, whilst output charges rose at a stronger pace. Business confidence eased to the weakest since last October.
The Nikkei India Manufacturing Purchasing Managers’ Index (PMI) rose from 51.2 in May to 53.1 in June. "This was consistent with the fastest improvement in the health of India’s manufacturing economy in 2018 so far. Manufacturing production rose in June, thereby extending the period of expansion to 11 months. Moreover, the rate of growth was sharp and the most pronounced since last December," Nikkei IHS Markit said.
Buzzing: Share price of MOIL advanced 2.5 percent intraday as company revised prices of different grades of manganese ore and other products, effective July 1.
The prices of ferro grade, SMGR (Mn30% & Mn25%), chemical grade and fines have been increased by about 5 percent on the existing prices. However, a discount at 5 percent will be offered on the prices effective from July 01, on specific grade of material BGF534 for dispatches during July'2018.
The basic price of electrolytic manganese dioxide (EMD), has been increased by Rs 200 PMT.
Ferro manganese/ferro manganese slag and some identified grades of manganese ore will continue to be sold on e-auction basis as well as through metal mandi (M3) of MSTC.
Good Debut: Railways consultancy firm RITES started off the first day at Rs 190 per share on the BSE on Monday.
The stock price rallied 2.7 percent compared to issue price which fixed at Rs 185 per share.
It traded 9.7 percent higher at Rs 202.95 after hitting a high of Rs 205.75.
The Rs 466-crore initial public offer had garnered strong investor demand, with the issue getting oversubscribed 67.24 times during June 20-22.
It was the first state-owned firm to hit the IPO market in the current fiscal.
New Listing: Shares of Fine Organics listed with a premium of over 4 percent on the National Stock Exchange (NSE).
The stock listed at Rs 815 apiece, a premium of Rs 32 to the issue price of Rs 783, on the exchange.
The Rs 600-crore initial public offer was oversubscribed by 8.99 times during June 20-22, 2018.
The IPO comprised of offer for sale of 76,64,994 equity shares by the promoter group selling shareholders who are Prakash Damodar Kamat, Mukesh Maganlal Shah, Jyotsna Ramesh Shah, Jayen Ramesh Shah, Tushar Ramesh Shah and Bimal Mukesh Shah.
Fine Organic is the largest manufacturer of oleochemical-based additives in India and a strong player globally in this industry, according to CRISIL Research Report.
Buzzing: IDBI Bank’s shares rose around 6 percent intraday after the imminent deal between the lender and LIC was announced late on Friday.
The Insurance Regulatory Development Authority of India (IRDAI) on Friday allowed Life Insurance Corporation of India (LIC) to invest up to 51 percent in IDBI Bank.
Sources told Moneycontrol this is a special case dispensation that has been given to LIC and the 15 percent equity investment cap still remains. According to the regulator's norms on investment, insurance companies cannot hold more than 15 percent stake in any company.
"They presented us this proposal and the board has given a go-ahead to them for this case," said a senior IRDAI official.
However, the official added, IRDAI will have to be apprised on the deal process, timeline, and other information.
Tata Steel in Focus: Shares of Tata Steel rose more than 3 percent as company signed joint venture (JV) agreements to create new steel champion in Europe.
Tata Steel has approved the terms to create a 50:50 joint venture which will combine the European steel businesses of the company and thyssenkrupp AG and has adopted resolutions for the signing of the definitive agreement, company said in release.
The formal execution of the definitive agreements is expected shortly.
JV company will be positioned as a leading pan European high quality flat steel producer with a strong focus on performance, quality and technology leadership to support customers’ sustainability ambitions.
Buzzing: Natco Pharma share price jumped as much as 3 percent in morning after the launch of drug that is used for the treatment of Hepatitis C, in India.
Natco Pharma announced today that it is the first company in India to launch under its brand Hepcinat Plus, the generic fixed dose combination of Sofosbuvir 400 mg and Daclatasvir 60mg Tablet.
The drug is used for the treatment of patients with chronic hepatitis C virus (HCV) infection
Natco has launched Hepcinat Plus at an MRP of Rs 17,500 for a bottle of 28 tablets.
Prakash Industries in focus: The company said the Odisha Government had executed the mining lease of Sirkaguttu Iron Ore Mine, having Geological Reserves of around 9.9 million tonnes, in favour of the company in January 2017.
The company has already received Stage-I approval for diversion of Revenue Forest Land from Ministry of Environment, Forest & Climate Change. The company is now proceeding with other required clearances, and steps are being taken to operate the mine by next month.
With this captive sourcing of Iron Ore, the Company's dependence on open market sources will reduce substantially; thereby improving the overall operating and profitability margins of the company.
Market Update: The market is under pressure with the Sensex falling around 150 points following correction in major Asian stocks amid US-China trade tensions.
The Nifty is also trading way below 10,700 levels, weighed down by Reliance Industries, L&T, ITC and HDFC twins.
The Nifty Midcap index outperformed frontliners, trading flat.
Bajaj Auto and Tata Motors are up around 2 percent each after strong auto sales data for June while Tata Steel gained 2 percent after a definitive agreement with ThyssenKrupp to spin off its European steel assets into a 50:50 joint venture.
Auto Sales: Two and three-wheeler maker Bajaj Auto sold 4.04 lakh units in June 2018, which were quite higher that Nomura expectation of 3.86 lakh units.
Its total sales grew by 65 percent over 2.45 lakh units sold in same month last year.
Domestic sales during the month shot up 85 percent year-on-year to 2.34 lakh units while exports jumped 44 percent to 1.70 lakh units, the company said in its filing.
Total motorcycle sales in June 2018 grew by 65 percent to 3.37 lakh units compared to 2.04 lakh units sold in same month last year.
Bajaj Auto reported highest-ever 3-wheeler sales that increased sharply by 66 percent to 66,677 units YoY in June 2018.
Market Opening: Benchmark indices started off the first day of second half of CY18 on a flat note, tracking mixed Asian cues amid ongoing trade tensions.
The 30-share BSE Sensex rose 32.99 points to 35,456.47 and the 50-share NSE Nifty gained 0.80 points at 10,715.10.
Tata Motors, Tata Steel, Maruti Suzuki, HPCL, BPCL, Bajaj Auto, Titan Company, Tech Mahindra and Infosys are early gainers.
Vedanta, Eicher Motors, Coal India, NTPC, GAIL, ITC and Bharti Airtel are early losers.
The Nifty Midcap index gained 20 points while Nifty Bank fell 82 points.
Ashok Leyland, HEG, Graphite India and IDBI Bank gained up to 5 percent.
Nalco, Andhra Bank and Bata India are under pressure.
Market Pre-Opening Update: The Sensex settled at 35,545.22, up 121.74 points and the Nifty rose 18.10 points at 10,732.40.
Rupee Opening: The Indian rupee opened flat at 68.48 per dollar on Monday versus 68.47 Friday.
On Friday, rupee came under pressure in the first half of the sessions but losses for the currency were limited on suspected RBI interventions that curbed any major weakness for the currency and as the dollar weakened against its major crosses, said Motilal Oswal.
On Friday, data released by the RBI showed India’s FX reserves saw further erosion of USD 2.25billion and reserves for the week ended June 22 stands at USD 407.81 billion.
Today in the Asian session global crude oil prices have corrected after US president during the weekend tweeted that he has urged Saudi to increase oil production to keep prices in control. Today, USDINR pair is expected to quote in the range of 68.40 and 68.85, it added.
Fundraising: The Gautam Adani-led Adani Group said it plans to raise Rs 5,000-6,000 crore of equity through a combination of primary issuances and secondary monetisation of its stake in some of its subsidiaries.
The Adani Family through trusts and other entities hold controlling interest in entities including Adani Enterprises (AEL), Adani Ports and SEZ (APSEZ), Adani Power (APL), Adani Transmission (ATL) and Adani Green Energy (AGEL).
As part of the equity-raising program, the Group sold nearly 4 percent stake in APSEZ through an on market block trade raising Rs 3,000 crore on June 21 and June 29, 2018, it said in a release today.
The group also plans to sell some of its stake in ATL and AGEL.
Technical Outlook by LKP:
Index closed a week at 10,714.1 with loss of 107 points on weekly basis. Index closed a weak above 10,700 hinting bulls are taking control from the lower levels, now support for index is near 10,650-10,600 zone holding these levels we expect index to trade on positive note and resistance is coming near 10,740-10,800.
Market Pre-Opening: Benchmark indices traded higher in pre-opening despite mixed trade in Asian stocks amid trade tensions.
The 30-share BSE Sensex rose 141.55 points to 35,565.03 and the 50-share NSE Nifty gained 18.60 points at 10,732.90.
Pre-Market Report: The Nifty50 is likely to open flat on Monday tracking mixed trend seen in other Asian markets. The index closed 125 points higher at 10,714 on Friday.
Trends on SGX Nifty indicate a flat opening for the broader index in India, a fall of 0.5 points or 0.02 percent. Nifty futures were trading around 10,691-level on the Singaporean Exchange.
Wall Street's major stock indexes edged higher on Friday, as a surge in Nike Inc shares helped the quarter close out on an upswing while concerns over US international trade relations ebbed, said a Reuters report.
Asian stocks were narrowly mixed today, the first trading day of the second half of the year, with trade tensions between the US and its trading partners still a key concern for investors. The Nikkei 225 slipped 0.23 percent as the consumer goods and utilities sectors logged declines, it said.
Oil prices fell on Monday, with a Reuters survey showing Saudi Arabia has boosted supplies to a near-record 10.7 million barrels per day (bpd) in a sign the world’s top crude exporter wants to make up for disruptions elsewhere.