Indian markets closed higher in a strong show on Monday, ahead of the slated release of GDP data by the government later today. Investors will also keep an eye out for auto sector data and the policy rate decision of the RBI monetary policy committee later this week
Benchmark Indian equity indices closed 1% higher on Monday after a mixed start. The Sensex closed at 51,937.44, up 514.56 points, or 1.00%, while the Nifty closed at a record high of 15,582.80, up 147.15 points, or 0.95%. Energy, metal, and realty were top gainers, while auto, IT stocks ended lower. Among broader indices, the BSE midcap and smallcap indices ended 0.50% and 0.45% higher, respectively. The Nifty midcap 100 and smallcap 100 ended 0.31% and 0.14% higher, respectively. On the 30-share Sensex, RIL, ICICI Bank, Bharti Airtel, 20 other stocks ended in green, while M&M, Infosys, IndusInd Bank, and four other stocks ended the day in red.
OECD forecast: Global economy rebounding, faces multiple threats
The global economic rebound from the pandemic has picked up speed but remains uneven across countries and faces multiple headwinds. Most worrisome: the lack of vaccines in poorer nations, which could lead to new virus variants and more stop-and-go lockdowns.
Those were key points from the latest economic outlook published Monday by the Paris-based Organization for Economic Cooperation and Development.
OECD chief economist Laurence Boone said that economic prospects “have improved considerably in recent months, and the outlook is brightening … however, the health situation remains highly uncertain.”
EPFO allows members to avail second COVID-19 advance
Retirement fund body EPFO has allowed its over five crore subscribers to avail the second covid-19 advance in view of the second wave of the coronavirus infections in the country. Earlier last year, the Employees’ Provident Fund Organisation (EPFO) had allowed its members to withdraw covid-19 advance to meet exigencies due to the pandemic. The members were allowed to withdraw three months basic wages (basic pay dearness allowance) or up to 75% of amount standing to their credit in their provident fund account, whichever is less.
Crude oil futures rise on spot demand
Crude oil prices rose by ₹29 to ₹4,884 per barrel on Monday as participants widened their positions on a firm spot demand. On the Multi Commodity Exchange, crude oil for the June delivery traded higher by ₹29, or 0.6%, at ₹4,884 per barrel in 8,662 lots. Analysts said raising of bets by participants kept crude oil prices higher in the futures trade. Globally, West Texas Intermediate crude oil gained 1.24% to $67.14 per barrel, while Brent crude traded 1.21% higher at $69.55 per barrel in New York.
Twitter has to comply with new IT rules for digital media: Delhi HC
Twitter has to comply with the new Information Technology Rules for digital media if they have not been stayed, the Delhi High Court said on Monday.
Justice Rekha Palli issued notice to the Centre and social media platform Twitter seeking their stand on a plea by a lawyer, Amit Acharya, claiming non-compliance of the rules by it. (Read here)
Aurobindo Pharma Q4 net profit at ₹801.18 cr
Drug firm Aurobindo Pharma on Monday reported a consolidated net profit of ₹801.18 crore for the fourth quarter ended March 2021.
The company had posted a net profit of ₹863.16 crore for the corresponding period of the previous fiscal, Aurobindo Pharma said in a regulatory filing.
Its consolidated revenue from operations stood at ₹6,001.50 crore for the quarter under consideration. It was ₹6,158.43 crore a year ago, it added.
“Net profit after JV share, minority interest is not comparable due to Natrol divestment,” Aurobindo Pharma said.
Top gainers at this hour
Energy stocks gain
ABSL multi-cap fund receives 88,000 applications for over ₹1,900 cr
Aditya Birla Sun Life AMC Ltd (ABSL) on Monday said it has received over 88,000 applications for over ₹1,900 crore for its new multi-cap fund during its new fund offer (NFO) period. An open-ended equity scheme investing across large-cap, mid-cap and small-cap stocks, the NFO was open between 19 April and 3 May. The fund had reopened for subscription from 10 May. (Read here)
Dr. Reddy’s in talks with govt to bring Sputnik Light covid vaccine
Dr. Reddy’s Laboratories is in talks with the Centre to bring Russia’s Sputnik Light covid-19 vaccine into India, a company spokesperson told Reuters on Monday.
Dr. Reddy’s is also in talks with the government and the private sector to supply the two-dose Sputnik V vaccine, which the company expects to commercially launch in the country in the middle of next month. (Reuters)
J Kumar Infra secures ₹1,308 cr order for Mumbai metro rail project
J Kumar Infraprojects has received a letter of acceptance from Mumbai Metropolitan Region Development Authority for the Mumbai metro rail project.
The scope of project is part design and construction of balance works of package elevated viaduct and 10 elevated stations. The contract value of the project is ₹1,307.88 crore.
J Kumar Infraprojects reported 5.3% rise in net profit to ₹33 crore on a 13% rise in net sales to ₹992 crore in Q4 FY21.
Raymond appoints Harmohan Sahni as chief of realty business
Raymond Ltd on Monday said it has strengthened its executive leadership team, with the appointment of Harmohan Sahni as chief executive officer of its real estate business.
Sahni was till recently the chief operating officer (COO) of the real estate business of ECL Finance Ltd, the non-banking financial company of Edelweiss Group. (Read here)
RIL gains, M&M trades lower
Realty, metal top gainers
RIL, ICICI Bank lead gains
HDFC Bank shares trade flat after RBI imposes ₹10 crore penalty
Shares of HDFC Bank traded flat during early hours on Monday after the Reserve Bank of India (RBI) imposed a penalty of ₹10 crore for deficiency in its regulatory compliance.
“We wish to inform you that the RBI has imposed by an order dated May 27, 2021 a monetary penalty of ₹10 crore on HDFC Bank,” the company said in a statement.
“The bank has always endeavoured to maintain the highest standards of compliance and culture within the organisation, and shall continue to do so, including engaging with the regulator in this regard.” (ANI)
Bank union calls for transparency in bad loan sale to ARCs
The functioning of asset reconstruction companies (ARCs) in India should be transparent and subject to scrutiny including by parliamentary panels, the All-India Bank Employees’ Association (AIBEA) wrote to the Reserve Bank of India (RBI).
“Selling bad loans to ARCs should be the last resort and recovery should be the foremost task,” the union said in its letter on 30 May. (Read here)
Oil Climbs Toward $67 With Market Focused on OPEC+ Policy Meet
Oil advanced in Asian trading with the market focused on an OPEC+ supply policy meeting early this week and any commentary around the prospect for returning Iranian supply.
Futures in New York rose toward $67 a barrel after falling 0.8% on Friday. OPEC and its allies are expected to stick with a decision to boost output in July when the group gathers Tuesday, according to a Bloomberg survey last week. While rebounding demand is driving prices higher, the possibility of more barrels from Iran should a nuclear deal be revived is clouding the outlook.
Divi’s Laboratories shares jump 4 pc after Q4 earnings
Shares of Divi’s Laboratories on Monday gained 4 per cent after the company reported a 29.30% rise in its consolidated net profit for the quarter ended 31 March 2021.
The stock jumped 4% to ₹4,284.05, its 52-week high, on the BSE.
At the NSE, it gained 3.97 per cent to its one-year high of ₹4,284.20.
Drug firm Divi’s Laboratories on Saturday reported a 29.30% rise in its consolidated net profit to ₹502.02 crore for the quarter ended 31 March 2021, on account of robust sales. (PTI)
BNP Paribas announces new head of territory for India
BNP Paribas on Monday said that Aymar de Liedekerke Beaufort has been appointed the head of territory for India and will also retain his role as the head of corporate and institutional banking (CIB) with effect from 1 September. (Read here)
Carlyle leads ₹4,000 cr investment in PNB Housing Finance
PNB Housing Finance Ltd’s board of directors has approved a capital raise of up to ₹4,000 crore led by entities affiliated to Carlyle Group Inc.
The key objective is to augment capital adequacy, reduce gearing and accelerate growth with a focus on retail housing including self-employed and affordable housing loans like the Unnati segment.
Pluto Investments Sarl, an affiliated entity of Carlyle Asia Partners IV LP and Carlyle Asia Partners V LP, has agreed to invest up to ₹3,185 crore through a preferential allotment of equity shares and warrants at a price of ₹390 per share.
M&M trades lower
Shares of Mahindra & Mahindra Ltd fell over 6% as many brokerages firm downgraded the stock and cut its target price after the company in its earnings conference call said that it expects low single digit growth for tractor industry.
The stock fell as much as 6.1% and hit a low of ₹790 a share. At 10.43am, the scrip was trading at ₹798 on BSE, down 5.6% from its previous close. (Read here)
Sameet Chavan, chief analyst-Technical and Derivatives, Angel Broking on markets
“Last week started on a flat note and as the week progressed, our markets managed to extend the lead. Since last couple of weeks, the global uncertainty was not letting us move higher, but the moment they started cooling off, our market took off and in the process, the Nifty managed to surpass the psychological sturdy wall of 15,000 with some authority. During the week although there was no major momentum seen in the index, the undertone was bullish and hence, slowly and steadily we marched towards record highs. In fact, with Friday’s extended move, the Nifty went on to post new high on an intraday as well as closing basis.
Till last week, the entire world was so unsure where markets are headed and look now; we are at new record highs although the move was not as swift as it generally should be. Until Thursday, primarily the banking and IT were the major contributors to the move. But the sleeping lion RELIANCE finally seems to have awakened as it single-handedly led markets at new highs on the concluding day of the week. Now as far as levels are concerned for Nifty, 15600 is the immediate point and above which there is no major level visible before the yet another milestone of 16000. But it would be difficult to gauge whether the extended move from hereon would be similar (slow and steady) in nature or it would have some faster legs in between. On the flipside, 15300 – 15150 – 15000 are to be considered as immediate supports.
Sectorally, one after another different themes are expected to play out well and it’s better to stick to stock specific approach; because, the low-hanging fruit is already gone and from hereon it would not be easy at all to do a stock picking. The banking has been a bit inconsistent of late but we still believe that this heavyweight space has lot of potential and is likely to drive markets at higher levels. Despite having highlighted a lot of positive factors, we would advise traders not to get complacent. Hence, it’s better not to get over leveraged and should follow strict stop losses for existing positions.”
Indian economy seen growing at world’s fastest rate this year despite Covid 2.0
The Indian economy’s resilience will be tested by its ability to overcome a devastating outbreak of Covid-19, although no one’s yet doubting its potential to pull off the world’s fastest pace of growth among major economies this year.
The economy is on track to grow 10% in the year that began April 1, according to the median of 12 estimates compiled by Bloomberg News. That’s after several economists downgraded their forecasts in recent weeks to factor in local curbs on activity, including in India’s political and commercial hubs. (Read here)
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments, on Nifty’s trajectory
The index has a minor resistance between 15450-15485. If we can cross this hurdle, the markets should be able to conquer 15600-15700. The support for the Nifty has been upgraded to 15300-15350 and as long as we are able to hold this level on a closing basis, we are in bullish territory and minor dips or mild corrections can be utilized to buy into this market.
India reports 152,734 new COVID-19 infections, 3,128 deaths
India reported on Monday its lowest daily rise in new coronavirus infections since April 11 at 152,734 cases over the past 24 hours, while deaths rose by 3,128. The South Asian nation’s tally of infections now stands at 28 million, while the death toll has reached 329,100, health ministry data showed. (Reuters)
Gold prices today rise, jump ₹2,000 per 10 this month; silver rates higher
Gold and silver prices today edged higher in Indian markets, tracking positive global cues. On MCX, June gold futures were 0.25% higher at ₹48,662 per 10 gram while silver rates rose 0.6% to ₹72,033 per kg. Gold rates in India have jumped about ₹2,000 so far this month. (Read here)
Bank of Baroda trades lower
The lender was trading at ₹80.70 apiece, down 3.76%, at 9:48 am.
The bank plans to raise ₹5,000 crore from sales of shares and bonds after posting an unexpected loss in the fourth quarter. borrowing plan includes raising as much as ₹2,000 crore through a sale of shares and up to ₹3,000 crore via bonds that qualify as capital, according to an exchange filing.
SpiceJet Scion Urges India to Open Vaccination to Private Sector
Avani Singh, the chief executive officer of SpiceHealth and daughter of SpiceJet Ltd. Chairman Ajay Singh, has called upon India’s government to open up the manufacture and procurement of vaccines to the private sector, saying it’s the only way to ensure the nation’s vast population receives adequate protection from the pandemic. (Bloomberg)
The Sensex was at 51,476.22, up 53.34 points or 0.10%, while the Nifty opened at 15,437.75, up 2.10 points or 0.01%.
Intel reiterates chip supply shortages could last several years
Intel Corp’s CEO said on Monday it could take several years for a global shortage of semiconductors to be resolved, a problem that has shuttered some auto production lines and is also being felt in other areas, including consumer electronics.
Pat Gelsinger told a virtual session of the Computex trade show in Taipei that the work-and-study-from-home trend during the COVID-19 pandemic had led to a “cycle of explosive growth in semiconductors” that has placed huge strain on global supply chains.
“But while the industry has taken steps to address near term constraints it could still take a couple of years for the ecosystem to address shortages of foundry capacity, substrates and components.”
Price of petrol, diesel in Delhi ₹94.23 and ₹85.15 per litre, respectively
Stocks to Watch
Bank of Baroda, BPCL, Canara Bank, Wipro, HDFC Bank, M&M, among other stocks, could be in the news today. (Read here)
US imports rare Iranian oil in March despite sanctions
The US imported a rare cargo of 1.033 million barrels of Iranian crude in March despite sanctions on Iran’s energy sector, data from the US Energy Information Administration showed. The cargo is only the second oil import by the US from Iran since late 1991, data on EIA’s website showed.
The EIA could not be immediately reached for comment.
Markets are likely to be volatile on Monday while trends in SGX Nifty suggest a soft opening of Indian benchmark indices. On Friday the Nifty ended at 15,435.65, up 97.80 points or 0.64% and the BSE Sensex closed at 51,422.88, up 307.66 points or 0.60%. (Read here)
Paytm is mounting India’s biggest IPO but beware of bumps ahead
Paytm, formally known as One97 Communications Pvt. Ltd, has morphed into a full-stack financial products platform from a digital wallet provider within a few years. Its plans to go public by the end of this year, if followed through, would add credence to the company’s seriousness in being a market leader in the fintech space. (Read more)
Numbers to watch this week: GDP data, RBI policy, PMI…
Every Monday, Mint’s Plain Facts section features key data releases you need to keep an eye on during the week. Two big announcements are due this week: India’s gross domestic product (GDP) data, and the Reserve Bank of India’s (RBI’s) bimonthly monetary policy. Both will provide clues about the state of the economy, and the way ahead. In the corporate world, ITC is set to announce its earnings. (Read more)
Reserve Bank likely to keep rates on hold, extend GSAP
The Reserve Bank of India’s (RBI’s) monetary policy committee is expected to keep interest rates on hold in its upcoming review meeting on Friday amid fears of inflation adding to the impact of the second wave of covid infections, according to a Mint survey.
Alongside, market experts said RBI is also expected to revise gross domestic product (GDP) numbers while extending its government securities acquisition programme, or GSAP, announced in April. (Read more)
Asian markets open lower
Most Asian stocks retreated Monday and U.S. equity futures were steady as investors continue to weigh inflation risks and the strength of the economic recovery.
Equities slipped in Japan, Hong Kong and China, where a gauge of the manufacturing industry suggested the economy’s recovery momentum might have peaked. U.S. contracts fluctuated after the S&P 500 notched its fourth-straight monthly advance. Treasury yields ticked back below 1.60% on Friday. There’s no Treasuries cash trading in Asia amid holidays in the U.S. and U.K.
S&P 500 futures rose 0.1% as of 10:49 a.m. in Tokyo. The S&P 500 rose 0.1% Friday
Nasdaq 100 contracts climbed 0.1%. The Nasdaq 100 rose 0.2%
Topix index fell 0.6%
Australia’s S&P/ASX 200 Index was steady
Kospi index was little changed
Hang Seng Index fell 0.4%
Shanghai Composite Index fell 0.3%
SGX Nifty fell 0.31%
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