MARKET WRAP: Sensex ends 19 pts down, Nifty at 10,768; Sun Pharma up 8%

Sun Pharma surged over 8%, while Dr. Reddy ended nearly 5% higher on the BSE.

9:50 AM

Equity mutual funds saw Rs 121 billion net inflow in May: AMFI

Inflow into equity schemes last month was Rs 121 billion, up 8 per cent over April, shows data from the Association of Mutual Funds of India (Amfi). This was still below the 12-month average of Rs 144 billion. READ MORE

 

9:38 AM

Stocks in news

HDFC Bank raises MCLR across tenors by 10 bps effective today

Indian Bank revised the marginal cost of funds based lending rates (MCLRs) by 10 bps with effect from June 11, 2018

Tata Motors: JLR Retail Sales for May'18: Jaguar came at 14507 vs YoY 13613 units (6.6%) and MoM 13289 units (9.2%); Land Rover came at 33774 vs YoY 31874 units (6%) and MoM 31891 units (5.9%); Total JLR Retail Sales came at 48281 vs YoY 45487 units (6.1%) and MoM 45180 units (6.9%)

Tata Motors proposes to raise up to USD 500 mn via ECB

Omax Auto approves proposal for diversification and expansion of existing capacity for manufacturing products and equipment supplied to Railways

Dr Reddy's expects to launch generic Copaxone in H1 FY20 in US

Time Technoplast receives order worth Rs 40 crore

ITC acquires Nimyle floor cleaner, forays into home care space 

IIFL Real Estate Investment Trust receives certificate of registration from SEBI to undertake REIT activities.

Electrosteel Casting says promoter holding reduced to 11.11 percent from 45.23 percent post allotment of shares to lenders.

Shriram EPC resolves customer dispute in Iraq; order of $230 million restored to its joint venture with Iraqi Co.

McNally Bharat issues 1.20 lakh CCPS to promoters.

(Source: Nirmal Bang)

9:36 AM

COMMENT UBS on inflation, oil prices

We expect CPI inflation to average about 5% YoY in FY19 based on global crude oil prices to average US$75/bbl in FY19 (UBS global oil team forecasts). We expect refined core inflation (headline, minus food and fuel (petrol & diesel) groups) to stay around 5.5-6% in FY19, indicating demand-push inflation and rising input price pressure.

9:34 AM

INTERVIEW OF THE DAY Dollar nearing peak but oil remains a headwind: Morgan Stanley's Garner

Morgan Stanley forecasts oil price to move beyond $90 a barrel. Jonathan Garner, chief Asia and emerging market (EM) equity strategist, Morgan Stanley, tells Jash Kriplani the dollar could be nearing its peak but oil remains a headwind for India and that the country loses out to other EMs on metrics such as dividend yield and valuations. CLICK HERE TO READ MORE

Jonathan Garner, chief Asia and emerging market (EM) equity strategist, Morgan Stanley

9:33 AM

MARKET COMMENT Chris Wood of CLSA

Markets have relaxed over the past week in part because of relief that another Italian election has been avoided for now and in part because US dollar upward momentum has stalled. On Italy, this is likely just the calm before the next storm given the Five Star and League coalition government’s economic policies are inevitably going to be in conflict with Brussels.

The ECB will now be at pains to stress that its ongoing monetary policy will not be driven by Italy-specific issues. This means the focus will remain at the next ECB meeting on 14 June on when ECB “quanto easing” will end. If this is by the end of this year, as some think, that will raise the issue of who is going to buy the Italian bonds, and at what price, which the ECB will no longer be buying in 2019.

CLSA Managing Director & Equity Strategist Christopher Wood

9:32 AM

MARKET COMMENT Chris Wood of CLSA

The double whammy of monetary tightening and Fed balance sheet contraction remains the main risk for US equities, and therefore for global equities, and it should not be forgotten that quanto tightening accelerates as time progresses. Still monetary tightening is not the only risk. The past week and more has seen renewed negative focus on the “trade war” front.
 

Stock markets have so far proved remarkably unfazed over these latest protectionist salvoes partly because investor attention was focused elsewhere, namely Italy, and partly because investors are probably of the view that Donald Trump could turn on a dime again. This is certainly possible given that Trump continues to adopt a “good cop”/”bad cop” strategy.

 

9:22 AM

Sectoral trend

9:20 AM

BSE Sensex: ICICI Bank, Asian Paints, Powergrid among top losers in opening trade

9:17 AM

Market at open

 

At 9:16 AM, the S&P BSE Sensex was trading at 35,335, down 128 points while the broader Nifty50 was ruling at 10,725, down 44 points.

9:15 AM

MARKET COMMENT Amar Ambani, head of research, IIFL

At any other time, the Group of Seven nations meeting would have been market neutral. However, this time’s meeting in Canada has investors glued following trade issues. On Thursday, gains in auto, metals, banks and IT shares helped the benchmark indices soar, with the Nifty touching 10,800. Profit booking in the last hour of trade capped the gains and pushed the market off its day's highs.

Expect a range-bound trade as investors look more at global cues for direction. US indices closed mixed; profit booking was seen in tech stocks. Asian shares are subdued. Fears that European Central Bank would start tapering its massive stimulus has kept sentiment lower. Meanwhile, a report states that investors continued to keep their faith in equities through the mutual fund route as equity-oriented, balanced and ELSS funds saw inflows of over Rs.14,000 crore in May.

9:12 AM

Alert: 10-year bond yeild rises past 8% for the first time since May 2015

9:01 AM

Market at pre-open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,486.15	+23.07	+0.07
S&P BSE SENSEX 50	11,277.91	+10.73	+0.10
S&P BSE SENSEX Next 50	32,895.61	+28.08	+0.09
S&P BSE 100	11,081.15	+10.38	+0.09
S&P BSE Bharat 22 Index	3,548.06	+6.53	+0.18

(Source: BSE)

9:00 AM

Derivatives strategy on United Breweries by HDFC Securities

Buy United Breweries (UBL) June 1250

Call at Rs 35

Stop loss of Rs 25

Target Rs 50

 

 

Rationale: We have seen Long positions being built in UBL futures today where we have seen sharp Rise in Open Interest with Price rise of 4%.

 

Stock price has broken out from multiple top resistances, placed at 1200 odd levels.

 

Short term moving averages are trading above long term moving averages indicating bullish trend for the short to medium term.

 

Momentum Indicators and Oscillators are showing strength in the stock. READ MORE

8:59 AM

Commodity outlook and top trading ideas by Tradebulls

Short term gold remains under pressure because of strong US economy and US Dollar. It is trading under $1300. Gold needs to break $1307 which is its recent high and 200 day moving average. Traders should not start buying now anticipating bottom as gold has yet to make a bottom. However, there is silver lining for Gold as we anticipate rally near FOMC meeting or after because if we look at the money managers position and gold sentiment index, it is trading under 20. That means for every 4 bear there is 1 bulls. So sentiment is very much negative and we have not seen any panic selling yet. So historically we have seen gold bounce from these levels. Right now money managers net short position is lowest since Jan 19, 2016. Commercial net short position is lowest since Feb 2016. In MCX, we expect gold prices to bottom around 30600. READ MORE
 

8:55 AM

Nifty outlook by Prabhudas Lilladher for today

Post RBI policy outcome, both Nifty and Bank Nifty rallied but market still does not confirm a clear trend unless it witnesses a clear breakout at its either levels. Nifty has got a resistance at around 10830-10850 levels while Bank Nifty would have a barrier at around 27000-27050 levels. However, the support for the day is seen at 10700 while the resistance would be at 10830 levels. READ MORE