Sensex Falls 135 Points, Nifty Ends Below 15,300; Pharma & IT Stocks Witness Selling
Closing

Sensex Falls 135 Points, Nifty Falls Below 15,300; Pharma & IT Stocks Witness Selling

Indian share markets ended on a weaker note today in line with weak global markets and concerns over unabated foreign capital outflows.

Benchmark indices ended on a negative note for the sixth consecutive session in choppy trade amid global central bank efforts to tame runaway inflation.

At the closing bell, the BSE Sensex declined 135 points (down 0.3%).

Meanwhile, the NSE Nifty closed lower by 67 points (down 0.4%).

Bajaj Finance, Bajaj Finserv, and Reliance Industries were among the top gainers today.

Titan, Wipro, and Dr Reddy's Laboratories, on the other hand, were among the top losers today.

Titan share price have been falling and is down 30% from its peak.

The SGX Nifty was trading at 15,333, down by 16 points, at the time of writing.

The broader markets ended on a negative note. The BSE MidCap index and the BSE SmallCap index ended lower by 0.7% and 0.9% respectively.

Among the sectoral indices, stocks in the auto sector, pharma sector, and IT sector witnessed most of the selling.

On the other hand, some buying was seen among stocks in the banking sector and financial services sector.

{inlineads1}

As Indian share markets have been in a downtrend, you must be wondering when will the markets fully recover.

In this uncertainty, check out these 5 fundamentally strong companies which pay regular dividends and are undervalued.

Meanwhile, check out the results of a poll we conducted recently asking readers what's their course of action in this market.

Not surprisingly, majority of people seem to be buying the stock market dip.

Asian stock markets ended mixed today despite an overnight sell-off on Wall Street amid concerns of an economic downturn as monetary policies tighten.

The Nikkei plunged 1.8% while the Shanghai Composite added 1%. The Hang Seng climbed 1.1%.

European shares inched higher in early trade but were set for sharp weekly losses as a slew of interest rate hikes from major central banks fuelled worries about a sharp economic slowdown.

US stock futures are trading on a positive note with the Dow Futures trading up by 170 points.

The rupee is trading at 78.02 against the US$.

Gold prices for the latest contract on MCX are trading up by 0.2% at Rs 51,100 per 10 grams.

As we mentioned earlier, the Indian stock market is falling which has traders and investors worried.

The one question on every investor's mind today is whether the market correction is over?

Correlating Indian markets with the US markets, Chartist Brijesh Bhatia offers his view to answer this question, in his latest video for Fast Profits Daily.

Tune in to the below video to find out more:

In news from the automobile sector, Union Transport and Highways Minister Nitin Gadkari today said the prices of all electric vehicles will be equal to the cost of petrol vehicles in the country within one year.

Gadkari also mentioned that as an alternative to petrol and diesel, the government is promoting ethanol produced from crop residue.

Gadkari while addressing a summit said that this move will save money spent on fossil fuels.

{inlineads2}

The minister also noted that waterways is a cheaper mode of transportation than road and it is going to come up in a big way.

If you wish to invest in EV stocks, read our editorial to find if India's top EV stocks are generating returns for investors?

Speaking of EVs, have a look at the chart below which shows the massive opportunity in the two-wheeler EVs.

chart

Here's what lead Smallcap Analyst at Equitymaster, Richa Agarwal wrote about this in one of the editions of Profit Hunter:

  • In the last five years, two-wheeler sales in India were around 2 crore units per year. Now the sector is cyclical and has been in the downturn for some time. So let's consider a moderate 5% growth for the next 10 years.

    By 2030, we are looking at 2-wheeler sales of 3 crore units. Even if one third of this is EV sales, that's 1 crore electric 2-wheelers per year.

    In the last 2 years, average electric 2-wheeler sales were 1.5 lakh units. From 1.5 lakh to 1 crore, that's a 66x opportunity in 2-wheeler EVs.

    This is an annual growth rate of 52% over next 10 years. It's an almost vertical growth opportunity.

As per Richa, this is like a gold rush. But like in any gold rush, the winners will just be a few.

{inlineads3}

Moving on to news from the logistics space, Delhivery has launched its guaranteed same-day delivery service in 15 key cities in India.

This new service will enable direct-to-customer brands to deliver their webstore orders-on the day the order is received.

Delhivery will partner with brands and identify fast-moving SKUs, which will be stocked in warehouses within the city, close to the end consumer.

Orders received as late as 3 pm will be delivered on the same day.

Commenting on the announcement, Ajith Pai, Chief Operations Officer of Delhivery, said:

  • We consistently innovate with technology-led solutions. This solution will enable D2C brands to leverage our technology and supply chain capabilities to meet the evolving needs of their consumers.

Delhivery's backers include SoftBank Group, Tiger Global LP, the Carlyle Group, and FedEx.

Founded in 2011 as a food delivery service, Delhivery provides warehousing for Xiaomi and Lenovo Group.

The company also does shipment tracking for Zara, deliveries for Amazon and Walmart-owned Flipkart, and logistics for India's largest automakers, appliance manufacturers, and consumer goods makers.

The company plans to expand overseas by partnering with minority shareholder FedEx to sell its technology services.

Delhivery posted a loss of Rs 1.2 bn on revenue of Rs 20.7 bn for the March 2022 quarter.

Following the announcement, Delhivery share prices ended 4.5% lower on the BSE today.

To know more, check out Delhivery's financial factsheet.

And to know what's moving the Indian stock markets today, check out the most recent share market updates here.


Sensex, Nifty Trade Lower; Dr Reddys Laboratories, Wipro, & Asian Paints Top Losers
10:30 am

Sensex, Nifty Trade Lower; Dr Reddys Laboratories, Wipro, & Asian Paints Top Losers

Asian share markets are trading mixed, tracking an overnight sell-off on Wall Street amid concerns of an economic downturn as monetary policies tighten.

The Nikkei declined 2% while the Shanghai Composite is trading flat. The Hang Seng is up 0.8%.

In US stock markets, Wall Street indices fell sharply on Thursday amid a broad sell-off, as fears of a worldwide recession fretted investors, following aggressive monetary tightening by global banks to fight the mounting inflation.

Central banks of Switzerland and Britain announced rate hikes on Thursday, with the Swiss surprising everyone by stating that it is less worried about currency strength than about aggravating the inflation, and hiked rates by 50 bps.

Fears loomed across markets that the rising attempts of central banks to curb inflation could lead to a slowdown in global growth or recession.

With inflation at multi-year highs, an investor can do these 5 things to inflation-proof their portfolio.

Back home, Indian share markets are trading on a negative note. Following consecutive falls this week, Indian share markets have made investors poorer by over Rs 16 tn.

Benchmark indices opened on a flat note following the SGX Nifty trend tracking global cues.

The BSE Sensex is trading down by 183 points. Meanwhile, the NSE Nifty is trading lower by 61 points.

Reliance, Bajaj finserv, and Bajaj Finance are among the top gainers today. Dr Reddys Laboratories, Wipro, and Asian Paints, on the other hand, are among the top losers today.

The BSE Mid Cap index is trading flat. The BSE Small Cap index is trading lower by 0.3%.

{inlineads1}

Barring Metal, all sectoral indices are trading in red with stocks in the IT sector, pharma sector, and auto sector witnessing most of the selling.

As Indian share markets have been in a downtrend, you must be wondering when will the markets fully recover.

In this uncertainty, check out these 5 fundamentally strong companies which pay regular dividends and are undervalued.

Meanwhile, check out the results of a poll we conducted recently asking readers what's their course of action in this market.

Not surprisingly, majority of people seem to be buying the stock market dip.

The rupee is trading at 78.04 against the US$.

Crude Oil prices edged slightly lower as worries about global economic growth and uncertainty weighed on markets following numerous interest rate hikes around the world this week.

Gold prices are trading at Rs 51,018 per 10 grams. Meanwhile, silver prices are trading up by 1.45 at Rs 61,585 per kg.

{inlineads2}

Speaking of gold, Chartist Brijesh Bhatia discusses whether gold is the best hedge against inflation, in his latest video for Fast Profits Daily.

Investors are once again showing interest in the yellow metal as a hedge against inflation.

But what do the charts say? How well does gold perform when inflation is high?

Brijesh answers these questions and more in the below video. Tune in to find out:

In news from the insurance space, Life Insurance Corporation of India (LIC) is seeking buyers for secured bonds worth Rs 34 bn issued by Reliance Capital.

Reliance Capital is currently undergoing insolvency proceedings and LIC's move is an effort to present a clean book to an investor base that has widened since its recent IPO, said people in the know of the matter.

IDBI Capital Markets, LIC's process advisor for the sale of the bonds, has invited expressions of interest (EoIs) from asset reconstruction companies by the evening of 11 July.

The EoIs will be followed by an auction, although IDBI Capital has not specified any details of this in the notice inviting EoIs.

{inlineads3}

According to people in the know, LIC will recover about 27-30% of the Rs 34 bn bond amount, based on the last two trades between two lenders and an asset reconstruction company.

This is the second attempt by LIC to sell Reliance Capital bonds. In July last year, it had invited offers for an Rs 80.9 bn distressed assets portfolio comprising 16 companies, including bonds of Reliance Capital.

The sale did not go through due to differences between the corporation and bidders on pricing the assets.

Speaking of the insurance sector, have a look at the chart below which shows the investment assets of non-life insurers and life insurers over the past 10 years:

Investment Assets of Non-Life Insurers 11x That of Life Insurers

As per Tanushree Banerjee, Co-Head of Research at Equitymaster, the above chart is enough proof of how big an earning opportunity is the zero-cost float to the non-life insurers. Their investment assets under management is nearly 11 times that of life insurers.

Moving on to news from the energy space, Reliance Industries is one of the top buzzing stocks and is trading higher by 1.3%.

A benchmark of profitability for crude refiners has increased steadily in the past few weeks, bringing companies like Reliance Industries into the spotlight.

The Singapore-Dubai Hydrocracking refining margin has spiked 21.3% in the past month, on the back of rising demand for refined products globally. It now hovers around US$ 34.47 a barrel.

On Thursday, Brent crude touched US$ 120.7 a barrel as prices slipped over 2% overnight after the US Federal Reserve raised its key interest rate by 0.75%.

From a refining perspective, a rise in the benchmark margin has been led by sanctions on Russia, refinery shutdowns, and cessation of exports of refined products by China.

Indian refiners like Reliance Industries are set to benefit from this gap.

To know more, check out Reliance Industries' financial factsheet.

And to know what's moving the Indian stock markets today, check out the most recent share market updates here.


SGX Nifty Trades Flat, Growth of Indian Retail Business, Tata Motors' Sales Outlook, and Top Buzzing Stocks Today
Pre-Open

On Thursday, Indian share markets extended losses to the fifth trading session as dovish commentary by US Fed chair Jerome Powell failed to boost investor sentiment.

Benchmark indices ended deep in red yesterday, hitting fresh 52-week lows.

At the closing bell on Thursday, the BSE Sensex dipped 1,046 points (down 2%).

Meanwhile, the NSE Nifty closed plummeted 332 points (down 2.1%).

Nestle was among the top gainers.

Tata Steel, The Mahindra, and IndusInd Bank, on the other hand, were among the top losers.

The broader markets ended deep in red. The BSE MidCap index and the BSE SmallCap index ended lower by 2.3% and 2.9% respectively.

All sectoral indices ended on a weak note with stocks in the metal sector, IT sector, and banking sector witnessing most of the selling.

Shares of Maharashtra Seamless hit their 52-week high.

As Indian share markets have been in a downtrend, you must be wondering when will the markets fully recover.

In this uncertainty, check out these 5 fundamentally strong companies which pay regular dividends and are undervalued.

At 7:50 AM today, the SGX Nifty was trading flat at 15,340 levels.

Indian share markets are headed for a flat opening today following the trend on SGX Nifty.

Meanwhile, check out the results of a poll we conducted recently asking readers what's their course of action in this market.

Not surprisingly, majority of people seem to be buying the stock market dip.

Gold prices for the latest contract on MCX are trading flat at Rs 50,420 per 10 grams, at the time of Indian market closing hours on Thursday.

Speaking of gold, Chartist Brijesh Bhatia discusses whether gold is the best hedge against inflation, in his latest video for Fast Profits Daily.

Investors are once again showing interest in the yellow metal as a hedge against inflation.

But what do the charts say? How well does gold perform when inflation is high?

Brijesh answers these questions and more in the below video. Tune in to find out:

Top buzzing stocks today

Tata Motors share price will be among the top buzzing stocks today.

Tata Motors in its annual report said that the recent lockdowns in parts of China are adversely impacting the company's supply chains as its suppliers are unable to produce or deliver products to them.

The Indian automotive manufacturing company also said that it is witnessing a temporary decrease in demand.

The lockdowns in China have also led to some dealerships in some regions of China temporarily closing, which may hurt the company's sales outlook in the current financial year.

Ajanta Soya share price will also be in focus today.

Branded edible oil makers have slashed prices of palm oil, sunflower, and soybean oil by up to Rs 15 per litre as international prices have softened.

This will bring some relief to consumers who are reeling under inflationary pressure.

The drop in prices has prompted distributors to stock up as demand is expected to pick up.

The stock had hit upper circuit in yesterday's trade as the company informed about the stock-split approval provided by the depositories.

5G services in India

India's biggest spectrum auction, which will pave the way for high-speed 5G services, is likely to conclude by July end.

According to the government notification, 5G services will be about 10 times faster than 4G and are expected to be rolled out by August-September.

Bharti Airtel and Jio are expected to participate in the upcoming auction but telcos may be selective on the quantum this time given the likely demand supply imbalance and annual auctions.

As per a rating agency, the telecom industry is expected to shell out around Rs 1 - 1.1 tn on the 5G auction, despite telcos' reservations over high spectrum prices.

This could lead to an increase in the already elevated debt levels in the telecom industry.

Although, telcos have been focused on deleveraging, deferred liabilities continue to keep debt levels aloft.

Speaking of debt levels, have a look at these 4 companies with a high debt problem, could these stocks collapse.

Retail businesses grow in May

As per the latest survey by the Retailers Association of India (RAI), retail businesses across India witnessed a growth of 24% in May this year against the pre-pandemic level of the same month in 2019.

RAI CEO Kumar Rajagopalan said,

  • Categories, such as garments and footwear, have begun to do well on account of the ongoing wedding season and resumption of work from office.

    The worry around inflation continues to exist, however, as of now, customers are willing to come out and shop as socialising is now picking up pace.

RAI said with outdoor activities picking up, categories such as quick-service restaurants, and footwear are indicating rapid growth, and segments like beauty and wellness have also started to show positive growth.

US Fed's hike: What it means for the Indian Economy

The US Federal Reserve's 75 basis point hike to 1.5 - 1.75% is the highest one-time increase in nearly three decades, underlines the US Central Bank's efforts to bring inflation under control.

This, however, raises concerns about India's inflation, which will worsen as a result of the outflow of funds from emerging economies and exert downward pressure on the local currency.

The international fund managers will be compelled to pull money out due to current inflationary pressures, a growing current account deficit, and a falling currency.

Yesterday, in the intraday trade, the rupee hit a new low of 78.28 against the dollar.

FPIs have emerged as net sellers for the ninth straight month in June and it may continue until there's clarity on how far the US Fed will move to tighten liquidity in the US.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.