Indian Indices End Flat; Maruti Suzuki and UPL Among Top Nifty Gainers
Closing

Indian share markets witnessed volatile trading activity today and ended on a flat note.

Benchmark indices climbed off the record highs scaled in the early deals and ended on a flat note, dragged by index heavyweights such as Reliance Industries, Bajaj Finance and Asian Paints along with select financial and real estate counters.

At the closing bell, the BSE Sensex stood higher by 14 points (up 0.1%).

Meanwhile, the NSE Nifty closed higher by 26 points (up 0.2%).

Maruti Suzuki and UPL were among the top gainers today.

Bajaj Finance and Asian Paints, on the other hand, were among the top losers today.

The SGX Nifty was trading at 15,748, up by 20 points, at the time of writing.

The BSE MidCap index and the BSE SmallCap index ended up by 0.3% and 0.8%, respectively.

Sectoral indices ended on a mixed note with stocks in the engineering sector, power sector and auto sector witnessing most of the buying interest.

Realty and banking stocks, on the other hand, witnessed selling pressure.

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Shares of Venkys and Tata Consumer Products hit their respective 52-week highs today.

Asian stock markets ended on a positive note today.

The Hang Seng ended down by 0.6%, while the Shanghai Composite ended the day up by 0.8%.

The Nikkei ended up by 3.1% in today's session.

US stock futures are trading on a flat note today with the Dow Futures trading down by 1 point.

The rupee is trading at 74.36 against the US$.

Gold prices for the latest contract on MCX are trading up by 0.1% at Rs 47,118 per 10 grams.

Speaking of the stock markets, India's #1 trader, Vijay Bhambwani shares what happened at the Robin Hood Conference, in his latest video for Fast Profits Daily.

Tune in to the video below to find out more:

In news from the auto sector, Maruti Suzuki was among the top buzzing stocks today.

Shares of the country's largest car maker Maruti Suzuki surged over 5% to hit an intraday high of Rs 7,299 per share on the BSE today, a day after it undertook price hikes for its vehicles.

Maruti Suzuki, will increase car prices in the July-September quarter to offset input price hikes.

Over the past year, the cost of the company's vehicles continues to be adversely impacted due to increase in various input costs. Hence, it has become imperative for the company to pass on some impact of additional cost to customers through a price rise. The price rise has been planned in quarter 2 and the increase shall vary for different models', Maruti Suzuki said in a statement.

This will be the second round of price increase by the Delhi-based company in this financial year.

The maker of Swift and Baleno had raised prices by around 1.6% in the April-June quarter. The price was raised to mitigate the jump in input costs.

Apart from that, the country's largest carmaker reported a 71% decline in total sales to 46,555 units in May as compared to 1.6 lakh units in April as a spike in Covid-19 cases and lockdowns across various states hit dispatches.

The company said its domestic dispatches to dealers last month stood at 35,293 units, down 75% from 1.4 lakh units in April.

The auto major had also shut production from May 1 through May 16 so as to divert oxygen from industrial use for medical purposes.

Maruti Suzuki share price ended the day up by 5% on the BSE.

Moving on to news from the IT sector...

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Info Edge Shares Fell 2% on Disappointing March Quarter Results

Info Edge (India), the parent company of subsidiaries such as Naukri.com and Jeevan Saathi, announced its results for the fourth quarter on Monday.

Shares of Info Edge slipped over 2% at Rs 4,853 per share on the BSE today, in an otherwise strong market, after the company witnessed weakness in its operating performance during the quarter.

The company reported 60.2% rise in standalone net profit to Rs 666.8 m on 10.2% fall in net sales to Rs 2.9 bn in the fourth quarter of 2021 against the same period last year.

On a standalone basis, the company's net profit increased by 13.7% to Rs 2.7 bn on a 31.7% decline in net sales to Rs 11 bn in the financial year over the last year.

Its revenue from recruitment solutions segment was at Rs 2 bn, down 13.9% year on year (YoY), revenue from 99acres for real estate was at Rs 500.9 m, down 11.1% YoY in the March quarter.

The company reported a 44.9% YoY decline in operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) at Rs 532 m during the quarter.

However, the company has seen improving billing growth both YoY and quarter on quarter (QoQ).

Billing increased 25.1% YoY and 39.8% QoQ to Rs 4.2 bn during the fourth quarter, mainly led by a 26% YoY growth in recruitment and 41.5% YoY growth in 99 acres billing.

As compared to the quarter four of 2019 (a pre-pandemic quarter), the company's overall billing was up 15%.

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Commenting on the results, Mr Chintan Thakkar, CFO said,

  • We have witnessed continued recovery during the quarter, led by billings growth in Naukri India and 99acres by 26.0% and 41.5%respectively, over quarter four billings of financial year 20202.

    As compared with quarter four of fiscal 2019, a pre-pandemic quarter, the billings in Naukri India and 99acres have grown 16.7% and 7.5% respectively.

Info Edge share price ended the day down by 2.2% on the BSE.

Speaking of stocks, here's a pattern that if you see, you must sell your position. After all, exits are more important than entries.

In the chart below, we can see the head and shoulder pattern - the stock goes up, makes a high, falls a little bit, goes up to a higher high, does not make a higher low, rallies again, fails to make a new high, and then starts to break down.


This usually happens in a situation where a stock or index has typically been in a bull trend for a while. Spotting this correctly can help you save money.

If you're interested in trading and want to know how you can use this pattern, you can read about it in one of the editions of Profit Hunter here: It's When You Sell that Counts

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


Sensex Trades Over 200 Points Higher, Dow Futures Up by 72 Points
12:30 pm

Share markets in India are presently trading on a strong note.

The BSE Sensex is trading up by 289 points, up 0.6% at 52,863 levels.

Meanwhile, the NSE Nifty is trading up by 106 points.

Adani Ports and Maruti Suzuki are among the top gainers today. Bajaj Finance and Nestle India are among the top losers today.

The BSE Mid Cap index is trading up by 0.9%.

The BSE Small Cap index is trading up by 1.4%.

On the sectoral front, barring the FMCG sector, stocks from all sectors are trading in green with stocks from the engineering sector, witnessing most of the buying interest.

US stock futures are trading mixed today.

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Nasdaq Futures are trading flat while Dow Futures are trading up by 72 points (up 0.2%).

The rupee is trading at 74.13 against the US$.

Gold prices are trading down by 0.1% at Rs 47,050 per 10 grams.

Gold prices were mixed in Indian markets today after a sharp drop in rates in the previous week. On MCX, gold futures edged 0.2% higher to Rs 47,185 per 10 grams.

Note that the precious metal has corrected sharply this month in India, falling from Rs 49,500 levels, tracking a decline in global rates.

In international markets, gold prices were were steady today, extending yesterday's 1% advance. Spot gold was flat at US$ 1,784.1. Concerns regarding inflation eased as investors weighed comments by Federal Reserve Chair Jerome Powell, who reiterated that higher inflation will likely be transitory.

Speaking of the precious yellow metal, how lucrative has gold been as a long-term investment in India?

The chart below shows the annual returns on gold over the last 15 years...


As you can see, barring just two years - 2013 and 2015, gold has delivered positive returns in 13 of the last 15 years.

The recent price volatility in the bullion market has rattled many traders. Even with the recent volatility in prices, gold remains among the best performing commodities this year to combat the fallout from the coronavirus pandemic.

To know more about gold, check out our article on how to invest in gold here: How to Invest in Gold?

Moving on to stock specific news...

Among the buzzing stocks today is KPIT Technologies.

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KPIT Technologies announced the signing of a definitive agreement to acquire a controlling stake in PathPartner Technology.

PathPartner is a specialist design service and solution provider of operating system software and low-level software for automotive, camera, radar, and multimedia devices.

The deal is subject to customary closing conditions and is expected to close during the June 2021 quarter.

KPIT will initially purchase 60% stake of the company for a consideration of Rs 890 m, and will acquire the remaining over a period of two years against defined growth targets.

The total consideration for 100% stake will not exceed Rs 1.9 bn

Commenting on the acquisition, Kishor Patil, CEO, KPIT Technologies, said

  • We welcome PathPartner Technology to the KPIT family.

    PathPartner's competence in the operating system software and low-level software and existing semiconductor partnerships for early access to platforms is key to delivering complex production programs.

    Together, we can offer differentiated offerings for new-age vehicle architectures and strengthen our software integration expertise.

The announcement was made after market hours on 21 June 2021.

How this acquisition pans out remains to be seen. Meanwhile, stay tuned for more updates from this space.

At the time of writing, KPIT Technologies shares were trading up by 5% on the BSE.

Speaking of the stock markets, India's #1 trader, Vijay Bhambwani shares what happened at the Robin Hood Conference, in his latest video for Fast Profits Daily.

Tune in here to find out more:

Moving on to news from the indian pharma sector...

Sun Pharma Inches Up as Company Settles Patent Litigation 

Shares of Sun Pharmaceuticals were trading with mild gains in early trade today after the company announced the settlement of its patent litigation for generic Revlimid in the US.

In a media release, the pharmaceutical major said -

  • Sun Pharma has reached an agreement with Celgene Corporation (Celgene), a wholly-owned subsidiary of Bristol Myers Squibb, to resolve the patent litigation regarding submission of an Abbreviated New Drug Application (ANDA) for a generic version of Revlimid (lenalidomide capsules) in the US.

Pursuant to the terms of the settlement, Celgene will grant Sun Pharma a licence to Celgene's patents required to manufacture and sell certain limited quantity of generic lenalidomide in the US.

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As a result of the settlement, all litigation between Sun Pharma and Celgene, regarding the Revlimid patents, will be dismissed.

The agreement is subject to customary regulatory approvals, the company said. Additional details regarding the settlement are confidential.

We will keep you posted on more updates from this space. Stay tuned.

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


Indian Share Markets Open Strong; Maruti Suzuki & Titan Among Top Gainers
09:30 am

Asian share markets jumped today, clawing back most of the previous session's losses as investors reassessed the hawkish turn at the US Federal Reserve.

The Hang Seng and the Nikkei are up 0.1% and 3%, respectively. The Shanghai Composite is trading higher by 0.8%.

In US stock markets, Wall Street rallied overnight, with the Dow completing its strongest session in over three months.

The Dow Jones Industrial Average rose 1.8%, while the Nasdaq Composite climbed 0.8%.

Back home, Indian share markets have opened on a positive note, following the trend on SGX Nifty.

Market participants will track shares of NMDC, Aster DM Healthcare and Bharat Electronics as these companies are scheduled to release their quarterly earnings today.

The BSE Sensex is trading up by 330 points. Meanwhile, the NSE Nifty is trading higher by 107 points.

Maruti Suzuki is among the top gainers today. UltraTech Cement, on the other hand, is among the top losers today.

The BSE Mid Cap index has opened up by 0.9%. The BSE Small Cap index is trading higher by 1.3%.

All sectoral indices are trading in green with stocks in the energy sector and power sector witnessing most of the buying interest.

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Shares of CRISIL and Dixon Technologies hit their 52-week highs today.

The rupee is trading at 74.15 against the US$.

Gold prices are trading up by 0.3% at Rs 47,220 per 10 grams.

Meanwhile, silver prices are trading up by 0.1% at Rs 67,780 per kg.

Gold prices edged higher today as a slight retreat in the dollar offered support to the safe-haven metal, ahead of US Federal Reserve Chairman Jerome Powell's testimony to Congress later in the day.

Crude oil prices continued to rally, with Brent oil hitting US$75 a barrel for the first time in more than two years.

In crypto markets, Bitcoin tumbled on Monday, to a two-week low of US$31,333, on China's expanding crackdown on bitcoin mining.

Speaking of the stock markets, Brijesh Bhatia, Research Analyst at Fast Profits Report talks about why he is bullish on IT stocks and why they will lead the next leg of the rally, in his latest video for Fast Profits Daily.

Tune in to the video below to find out more:

In news from the media sector, Dish TV is among the top buzzing stocks today.

Direct-to-home company Dish TV India on Monday said its board has approved raising up to Rs 10 bn through a rights issue in one or more tranches.

The Essel group company said this would be subject to receipt of such corporate, regulatory and other approvals/consents, as may be required under applicable rules, regulations and laws.

Funds would be raised through issuance of fully paid-up equity shares at Rs 10 apiece, including premium of Rs 9 per fully paid-up equity share, to eligible shareholders of the company as on the record date.

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On 7 February this year, the company's board had considered various options for fundraising.

Later on 17 February, the board constituted a fund raising committee for recommending, taking actions and monitoring in the matters of raising funds and related matters thereof.

How Dish TV's fund raising activity pans out remains to be seen.

Dish TV share price has opened the day down by 1.7%.

Moving on to news from the banking sector, state-owned Indian Bank on Monday launched its qualified institutional placement (QIP) of shares to raise around Rs 40 bn.

The public sector bank (PSB) set the floor price at Rs 142.15 per share. Floor price is the minimum price set for an issue, below which an offer cannot be made.

The committee of directors on capital raising in its meeting held on Monday approved and authorised the opening of the QIP yesterday.

"The bank may, in accordance with the special resolution of the shareholders, at its discretion offer a discount of up to 5% on the floor price in the QIP," Indian Bank said in a regulatory filing.

Further, a meeting of the committee is scheduled to be held later this week on 24 June to consider and approve the issue price, including a discount for the equity share to be allotted.

In March this year, the committee of directors had accorded approval for raising equity capital aggregating up to Rs 40 bn through QIP in one or more tranches.

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Last month, the bank had reported a net profit of Rs 17.1 bn in the March quarter against a loss of Rs 21.8 bn in the year ago period, buoyed by rise in core income and Rs 9 bn tax write back.

The net interest margin (NIM), a key profitability parameter, rose 12 basis points year-on-year to 2.85%.

Indian Bank share price has opened the day up by 1.4%.

Speaking of public sector undertakings (PSU), have a look at the chart below which shows the performance of BSE PSU index compared to BSE Sensex over the past few years.

As can be seen from the chart above, over the last decade, Rs 100 invested in BSE-PSU index would have eroded to Rs 80, compared to almost 3x gains for the Sensex.

Here's what Richa Agarwal, lead Smallcap Analyst at Equitymaster, wrote about PSU stocks in a recent edition of Profit Hunter:

  • However, it will be folly to paint all PSUs with the same brush. There are some exceptions in this space, which put their private peers to shame.

    In a recent editorial, I shared an opportunity in a PSU stock that is riding and enabling an irreversible megatrend - digitisation.

One of Richa's stock recommendation (subscription required) is a stock from this space. This smallcap PSU is leading the digitisation drive from the frontlines.

Richa believes it could be a perfect bet for these uncertain times. Hidden Treasure subscribers can read the recommendation here.

And if you're not a subscriber, here's where you can sign up.

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


SGX Nifty Up 77 Points, TRAI Data for March, Proposal for 100% FDI in Oil PSUs, and Buzzing Stocks Today
Pre-Open

Indian share markets ended on a positive note yesterday.

Benchmark indices bounced back from early losses and ended on a positive note as India opened free inoculation for all citizens on Monday.

At the closing bell yesterday, the BSE Sensex stood higher by 230 points (up 0.4%).

Meanwhile, the NSE Nifty closed higher by 63 points (up 0.4%).

Adani Ports and NTPC were among the top gainers.

UPL and Wipro, on the other hand, were among the top losers.

Both, the BSE MidCap index and the BSE SmallCap index ended up by 0.8%.

Sectoral indices ended on a positive note with stocks in the power sector, realty sector and oil & gas sector witnessing most of the buying interest.

Auto and IT stocks, on the other hand, witnessed selling pressure.

At 8:00 am today, the SGX Nifty was trading up by 77 points, or 0.5% higher at 15,805 levels. Indian share markets are headed for a positive opening today following the positive trend on SGX Nifty.

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Gold prices for the latest contract on MCX were trading up by 0.5% at Rs 47,001 per 10 grams at the time of closing stock market hours yesterday.

Speaking of the stock markets, Brijesh Bhatia, Research Analyst at Fast Profits Report talks about why he is bullish on IT stocks and why they will lead the next leg of the rally, in his latest video for Fast Profits Daily.

Tune in to the video below to find out more:

Top Stocks in Focus Today

Among the buzzing stocks today will be PNB Housing Finance.

The capital markets regulator has directed PNB Housing Finance to halt its proposed Rs 40-bn share allotment to a clutch of companies led by the Carlyle Group.

The regulator has further directed the company to carry out the valuation process as per the relevant legal provisions.

Earlier, the extraordinary general meeting (EGM) of the firm was scheduled for 22 June to approve the issuance of shares to a consortium of investors led by the Carlyle Group.

The market regulator said the resolution regarding the deal was ultra-vires of the company's Articles of Association (AoA).

The above move by the market regulator came after a proxy advisory firm had highlighted that proposed preferential issue by PNB Housing Finance was against the interest of public shareholders, Punjab National Bank (PNB) shareholders and the government.

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In a note to institutional investors, Stakeholders Empowerment Services (SES) had argued that a rights issue would have been a fairer and better option for raising capital. SES had recommended PNB Housing's public shareholders to vote against the resolution on preferential allotment.

In response to the halt, PNB Housing Finance has filed an appeal before Securities Appellate Tribunal with a consortium led by Carlyle.

Last month, PNB Housing's board had approved a preferential allotment of Rs 32 bn worth of shares and Rs 8 bn worth of warrants to Carlyle, Aditya Puri's family investment vehicle Salisbury Investments, General Atlantic and Alpha Investments at Rs 390 per share.

Bandhan Bank share price will also be in focus today.

Shares of Bandhan Bank surged 7% on the BSE yesterday after the Assam government inked an agreement with micro finance institutions (MFIs) to regularise and repay the entire loans of stressed borrowers.

Additionally, as an incentive to good borrowers who did not default, the government said it would pay Rs 25,000 for each account, or the loan amount, whichever is lower, to the MFIs.

The total cost to the government will be a maximum of Rs 82.5 m. The agreement was inked with the Micro Finance Institutions Network (MFIN).

Bandhan Bank, with highest market share in Assam, is naturally bound to benefit from the scheme designed in a way to retain credit culture and promote responsible repayment behaviour.

In the March 2021 quarter, the bank's asset quality had witnessed significant deterioration with pro-forma slippages/write-offs at 11%/10% (annualised), leading to more than a 2% decline in net interest margin.

However, amid concerns around asset quality, due to waiver announcements in Assam and elections in the state, the bank had reported slightly better overall collections at around 96%.

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TRAI Data: Mobile Subscriber Base Increases in March

Reliance Jio trumped Bharti Airtel in net subscriber addition in March, and Vodafone Idea also showed a positive net addition for the second straight month, the Telecom Regulatory Authority of India (Trai) data released on Friday showed.

While Reliance Jio added 7.9 m wireless users in March, Airtel followed with 4.1 m net subscriber addition. Idea recorded a net addition of 1.1 m net subscribers.

In terms of total subscriber's base, Reliance Jio topped the chart with 422.2 m subscribers, followed by Airtel at 352.4 m and Vodafone Idea at 283.7 m. BSNL's total subscriber base stood at 118.6 m, the March data showed.

In the wireless category, Reliance Jio's market share stood at the highest 35.8%, followed by Airtel at 29.8% and Vodafone Idea at 24%.

The number of active wireless subscribers as of March 2021 stood at 993.9 m. Around 12.7 m subscribers submitted their requests for mobile number portability (MNP) in March.

According to the monthly subscriber data by TRAI, the total number of telephone subscribers in India increased to 1,201 m at the end of March 2021, a monthly growth rate of 1.1%.

Cabinet Note Issued for 100% FDI in Oil PSUs Marked for Disinvestment

The commerce and industry ministry has floated a draft cabinet note seeking inter-ministerial views on a proposal to allow up to 100% foreign investment under automatic route in oil and gas PSUs, which have an 'in-principle' approval for disinvestment.

If approved, this move will facilitate privatisation of India's second biggest oil refiner Bharat Petroleum Corp (BPCL).

The government is privatising BPCL and is selling its entire 52.98% stake in the company.

Sources said that as per the draft note, a new clause would be added in the FDI policy under the petroleum and natural gas sector.

For BPCL privatisation, Vedanta had put in an expression of interest (EoI) for buying the government's 52.98% stake in the PSU.

The other two bidders are global funds, one of them being Apollo Global Management.

At present, only 49% FDI is permitted through automatic route in petroleum refining by the PSU, without any disinvestment or dilution of domestic equity in the existing PSUs.

It remains to be seen if the union cabinet approves the proposal.

We will keep you updated on the latest developments from this space. Stay tuned.

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