Market Commentary - End-Session
Profit booking sets in after 4-day streak, Nifty holds 23,500; private banks climb As on : 19-Jun-24  18:12

Domestic stock markets took a breather today after a four-day record breaking streak. The Nifty 50 hit an all-time high but gave up its gains to close marginally lower. Bucking the broader weakness, private banks and financial stocks found strength. Despite the wobble, there are positive signs, with renewed foreign investor inflows and robust economic data fostering optimism for a continued rally.

In the barometer index, the barometer index, the S&P BSE Sensex was up 36.45 points or 0.05% to 77,337.59. The Nifty 50 index lost 41.90 points or 0.18% to 23,516.

The Sensex and Nifty clocked an all-time high of 77,851.63 and 23,664, respectively, today.

The Nifty Bank hit a record high of 51,957 today. Axis Bank (up 3.11%), HDFC Bank (up 3.06%), ICICI Bank (up 1.92%), Indusind Bank (up 1.86%) and Kotak Mahindra Bank (up 1.49%) rallied.

The broader market underperformed the headline indices. The S&P BSE Mid-Cap index declined 0.91% and the S&P BSE Small-Cap index shed 0.58%. Both the indices reversed trend after hitting record high levels in initial trade.

The market breadth was negative. On the BSE, 1634 shares rose and 2235 shares fell. A total of 105 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, jumped 5.76% to 13.71.

Economy:

India's direct tax collection has grown significantly in the current financial year compared to the same period last year. Gross collections (before refunds) are up 22.19%, reaching over Rs 5.15 lakh crore by mid-June, while net collections (after refunds) have grown by around 21% to over Rs 4.62 lakh crore. This growth is partly due to a 27.34% increase in advance tax collection. The government has also issued more refunds this year, with Rs 53,322 crore paid out by mid-June, a 33.7% increase.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.14% to 6.971 as compared with previous close 6.981.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.4400, compared with its close of 83.4300 during the previous trading session.

MCX Gold futures for 5 June 2024 settlement was up 0.24% to Rs 72,232.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.01% to 105.25.

The United States 10-year bond yield gained 1.87% to 4.229.

In the commodities market, Brent crude for August 2024 settlement lost 9 cents or 0.11% to $85.24 a barrel.

Global Markets:

Most European shares declined while Asian stocks ended mixed on Wednesday. The U.K. Inflation rose by an annual 2% in May, hitting the Bank of England?s target ahead of its policy rate decision on Thursday.

The S&P 500 and Nasdaq hit record highs in the US on Tuesday, with Nvidia surpassing Microsoft to become the world's most valuable company.

U.S. retail sales data released Tuesday showed minimal growth in May, with prior month figures revised downward. This suggests sluggish economic activity in Q2, prompting investors to anticipate a Fed rate cut in September. CME FedWatch data indicates a 67% chance of easing, up from 61% the day before.

The U.S. stock market will be closed on Wednesday, June 19th, for Juneteenth.

Stocks in Spotlight:

Indus Towers slipped 3.06% to settle at Rs 334 on the NSE today as the counter witness a multiple block deals in early trade today. As per media reports, Vodafone Group was to sell almost 18% stake in Indus Towers for up to $2 billion. The shares of Indus Towers have exchanged hands in the price range of Rs 310 and Rs 341 apiece, the reports added.

In a regulatory filing made during market hours today, Bharti Airtel, one of the promoters of Indus Towers, said it acquired nearly 26.95 million (i.e. 1%) equity shares of Indus Towers today on-market. Bharti Airtel has held over 129.22 crore share, representing 47.95% stake, in Indus Towers as on 31 March 2024.

Tata Motors shed 0.84%. The auto major announced that it will increase the price of its commercial vehicles (CVs) up to 2% effective from 1 July 2024.

Separately, JLR and Chery Automobile Company, partners in the Chery Jaguar Land Rover (CJLR) joint venture, have signed a letter of intent to focus on electric vehicles (EVs) for the Chinese market.

Ami Organics jumped 4.52% after the company's board approved the opening of qualified institutional placement (QIP) of equity shares with the floor price of Rs 1,228.71 per share.

Zee Entertainment Enterprises (ZEEL) slipped 4.04% after the company informed that Rohit Kumar has resigned from the post of chief financial officer of the company, due to personal reasons.

Bharat Forge rose 0.42%. The forging company on Tuesday announced that it has made an additional investment of $40 million (Rs 334.04 crore) in its wholly owned subsidiary, Bharat Forge America (BFA).

Venus Remedies added 0.45%. The company announced it has been awarded a tender by the VVHO-backed Pan American Health Organisation for supplying essential cancer drugs to multiple Latin American countries.

Sakuma Exports added 0.72%. The company announced that its board will meet on Monday, 01 July 2024, to consider a proposal for issue of bonus shares to the equity shareholders of the company.

Jio Financial Services declined 1.34%. The company said that it has appointed S.Anantharaman as chief risk officer for a period of 5 years with effect from 19 June 2024.

Craftsman Automation advanced 2.29% after its board approved issue equity shares for an amount aggregating up to Rs 1.2 lakh by way of qualified institutions placement (QIP) with a floor price of Rs 4,426.11 per share.

IPO Update:

The initial public offer (IPO) of DEE Development Engineers received 3,74,51,044 bids for shares as against 1,49,44,944 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (19 June 2024). The issue was subscribed 2.51 times.

The issue opened for bidding on Wednesday (19 June 2024) and it will close on Friday (21 June 2024). The price band of the IPO is fixed between Rs 193 to Rs 203 per share. An investor can bid for a minimum of 73 equity shares and in multiples thereof.

Akme Fintrade (India)'s IPO received 2,36,47,500 bids for shares as against 78,65,000 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (19 June 2024). The issue was subscribed 3.01 times.

The issue opened for bidding on Wednesday (19 June 2024) and it will close on Friday (21 June 2024). The price band of the IPO is fixed between Rs 114 to Rs 120 per share. An investor can bid for a minimum of 125 equity shares and in multiples thereof.

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