Benchmark indices ended a volatile session with decent gains on Thursday. The Nifty managed close near the 15,800 mark. Positive global cues and declining COVID-19 cases boosted trading sentiment. IT, banks and financial shares were in demand while media and realty stocks declined.
The barometer index, the S&P BSE Sensex, rose 392.92 points or 0.75% at 52,699. The Nifty 50 index gained 103.50 points or 0.66% at 15,790.45.
Infosys (up 3.75%), TCS (3.42%), Tech Mahindra (2.23%) and HCL Technologies (1.85%) boosted the indices.
The broader market declined. The BSE Mid-Cap index lost 0.51% and the BSE Small-Cap index slipped 0.22%.
The market breadth was negative. On the BSE, 1,454 shares rose and 1,746 shares fell. A total of 150 shares were unchanged.
COVID-19 Update:
Also Read
Total COVID-19 confirmed cases worldwide stood at 17,96,01,602 with 38,91,974 deaths. India reported 6,27,057 active cases of COVID-19 infection and 3,91,981 deaths while 2,90,63,740 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India recorded 54,336 new coronavirus cases and 1,321 deaths in the last 24 hours ending 9 A.M. on Thursday. With this the country's total caseload has risen to over 3 crore, while the death toll has increased to 3.91 lakh. Meanwhile, the active caseload has dropped to 6.27 lakh.
Numbers to Watch:
The yield on 10-year benchmark federal paper fell to 6.012% as compared with 6.018% at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 74.18, compared with its close of 74.2775 during the previous trading session.
MCX Gold futures for 5 August 2021 settlement fell 0.17% to Rs 46,994.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.12% to 91.69.
In the commodities market, Brent crude for August 2021 settlement rose 13 cents at $75.32 a barrel. The contract rose 38 cents, or 0.51% to settle at $75.19 a barrel in the previous trading session.
Foreign Markets:
Shares in Europe and Asia advanced on Thursday, 24 June 2021, as traders digested commentary from US Federal Reserve officials on the outlook for stimulus.
In US, the S&P 500 erased modest gains earlier and closed in the red on Wednesday as the market's comeback rally took a breather. The Nasdaq hovered near its all-time high on Wednesday.
Dallas Fed President Robert Kaplan, who's penciled in a rate hike next year, said the economy will likely meet the Fed's threshold for tapering asset purchases sooner than people think. His Atlanta counterpart Raphael Bostic said the central bank could decide to slow such purchases in the next few months. Neither are currently voting members of the Fed's rate setting committee.
A measure of U.S. factory activity climbed to a record high in June. Data firm IHS Markit said on Wednesday its flash U.S. manufacturing PMI rose to a reading of 62.6 this month. That was the highest since the survey was expanded to cover all manufacturing industries in October 2009 and followed a final reading of 62.1 in May.
The U.S. current account deficit increased to a 14-year high in the first quarter. The Commerce Department said on Wednesday the current account deficit, which measures the flow of goods, services and investments into and out of the country, rose 11.8% to $195.7 billion last quarter. That was the largest shortfall since the first quarter of 2007.
New Listings:
Shares of Shyam Metalics and Energy settled at Rs 375.85 per share on the BSE, at a premium of 22.83% to the issue price of Rs 306 per share. The scrip was listed at a price of Rs 367 per share, at a premium of 19.93% as compared to issue price. The stock has hit a high of 399.10 and a low 367 so far in the trading session. On the BSE, 19.74 lakh shares were traded in the counter. The initial public offer (IPO) of Shyam Metalics and Energy received bids for 256.11 crore shares as against 2.10 crore shares on offer, according to the stock exchange data. The issue was subscribed 121.43 times.
Shares of Sona BLW Precision Forgings hit an upper circuit of 20% at Rs 362.85 on the BSE. The scrip was listed at a price of Rs 302.40 per share, at a premium of 3.92% compared with the issue price of Rs 291 per share. The stock has hit a high of 316 and a low 295.15 so far in the trading session. On the BSE, 49.96 lakh shares of the company were traded in the counter. The initial public offer (IPO) of Sona BLW Precision Forgings received bids for 24.44 crore shares as against 10.71 crore shares on offer, according to the stock exchange data. The issue was subscribed 2.28 times.
Reliance Industries AGM:
Reliance Industries (RIL) chairman and managing director Mukesh Ambani hosted the 44th annual general meeting (AGM) virtually today (24 June).
Ambani said that the company's business grew despite challenges due to the Covid-19 pandemic. This was mainly due to a sharp increase in its consumer business, which now contributes roughly half of RIL's operating profit.
The company reported a consolidated revenue of Rs 5,40,000 crore and consolidated EBITDA of Rs 98,000 crore.
RIL chairman further said that he expects a partnership between RIL and Saudi Aramco to be "formalised in an expeditious manner this year".
Ambani also announced that H.E. Yasir Al-Rumayyan, chairman of Saudi Aramco and governor of the Kingdom's wealth fundthe Public Investment Fundwill join the board of RIL as an independent director as part of the deal.
Emphasising on the need for a transition towards clean energy, the company's chairman laid out the roadmap of RIL's new energy business.
"We have started work on developing the Dhirubhai Ambani Green Energy Giga Complex on 5,000 acres in Jamnagar," Ambani said. "It will be amongst the largest such integrated renewable energy manufacturing facilities in the world."
Ambani said that RIL plans to build four Giga Factories for each of these task - Production of solar energy, Storage of intermittent energy, Production of green hydrogen and Fuel cell factory for converting hydrogen to usable power.
Ambani said that RIL will set up two additional divisions - Renewable Energy Project Management and Construction Division and a Renewable Energy Project Finance Divisionto further strengthen its renewable ambitions.
Reliance will thus create and offer a fully integrated, end-to-end renewables energy ecosystem. Our overall investment in New Energy business will be Rs 75,000 crore in 3 years, the chairman said.
Ambani further said that Reliance Retail continues to be the undisputed leader in organised retailing in the country, with scale that is more than 6 times the next competitor. Despite a challenging year, Retail business had revenues of 153,818 crore, and EBITDA of 9,842 crore.
Reliance Retail added 1,500 new stores, which is amongst the largest retail expansion undertaken by any retailer during this period, taking the store count to 12,711. Reliance Retail currently employs over 2 lakh people. Over the next three years, it will further create employment for over ten lakh people.
Stocks in Spotlight:
Apollo Hospitals Enterprise (AHEL) slipped 1.53% after the company's consolidated net profit dropped 18.94% to Rs 169.89 crore on 1.86% decline in revenue from operations to Rs 2,867.95 crore in Q4 March 2021 over Q4 March 2020. Profit before tax skid 16.24% to Rs 237.56 crore in Q4 FY21 as against Rs 283.64 crore in Q4 FY20.
Allcargo Logistics fell 3.24% after the company's consolidated net profit tanked 89.1% to Rs 5.91 crore on 79% jump in net sales to Rs 3,349.31 crore in Q4 March 2021 over Q4 March 2020. Profit before tax slumped 76.2% to Rs 15.52 crore in Q4 FY21 as against Rs 65.25 crore in Q4 FY20.
Cadila Healthcare fell 1.07%. The pharmaceutical major said that it has received tentative approval from the USFDA to market fingolimod capsules in the strength of 0.25 mg. The Fingolimodis an immunomodulating drug, indicated for the treatment of relapsing forms of multiple sclerosis (MS), is the bioequivalent of US reference listed drug (RLD) Gilenya capsules.
Adani Ports and Special Economic Zone (APSEZ) fell 1.28% after the company said that it may abandon Myanmar project if it violates U.S. sanctions and will write-down investments in the project in full. APSEZ has a project to build a container terminal in the city of Yangon on land leased from a Myanmar military-owned conglomerate. A military coup in Myanmar on 1 February 2021 and an ensuing crackdown on mass protests in which hundreds have been killed has drawn international condemnation and sanctions on military figures and military-controlled entities. Offering clarification with respect to the aforementioned media reports, Adani Ports said that the company has zero tolerance policy which ensures that there is no contravention of US and other sanctions. The company is in discussion with its US based counsels to ensure that the company follows the OFAC sanctions programs.
Nureca hit an upper circuit of 5% at Rs 1,627.50 after Hornbill Orchid India Fund bought 1,95,766 equity shares (or 1.95% stake) of the company at Rs 1,549.97 per equity share via bulk deals on the BSE yesterday, 23 June 2021.
Sharda Motor Industries soared 6.34% after the company announced a joint venture agreement with Kinetic Green Energy & Power Solutions to develop battery packs with battery management systems (BMS) for electric Vehicles & stationery applications. The JV company will undertake design, development & assembly of lithium‐ion battery packs along with BMS. The focus of the company will be to develop battery packs for the rapidly growing electric vehicle market in India & other segments of energy storage applications. Sharda Motor will hold majority of the equity, will set up manufacturing facility in Pune and is expected to be operational by Q3 of FY22.
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