 "Stock market: A roller coaster ride for Indian equities")
Markets continue to trade in a rangebound manner with participants watching out for the performance review meeting of PSU banks today. Also, caution continues to envelop the street ahead of the RBI's bi-monthly monetary policy review due tomorrow.
At 10:20 am, the S&P BSE Sensex is down 6 points to quote at 26,837 and the Nifty50 has shed 1 point to trade at 8,220. Meanwhile, in the broader markets, BSE Midcap index is trading in line with the larger peers down 0.5% while, BSE Smallcap index is outperforming and has gained 1.5%.
Top gainers in the Sensex pack include M&M, Cipla, GAIL, HDFC Bank, SBI and Infosys gaining between 0.5%-2%. On the flip side, Adani Ports, Bharti Airtel, Tata Steel, Maruti Suzuki, Axis Bank and Coal India have shed between 1%-3%.
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(updated at 9:15 am)
Meanwhile, progress of monsoons, crude oil and rupee movement along with FII stance are going to be some of the key drivers dictating the stock market movement this week. Participants will watch out for the industrial production data for April due on Friday.
At 9:15 am, the S&P BSE Sensex is up 25 points to quote at 26,869 and the Nifty50 has climbed 7 points to trade at 8,227.
Geojit BNP Paribas in a technical note says “the dip anticipated last Friday towards 8,214 is likely to mature today, testing the trend’s intention to move further higher. If such intent is discouraged at 8248 itself, expect extended slippage aiming 8,173 and thereafter 8,137-8,110. Alternatively, direct push above 8248 could spark some short covering, though visibility past 8285/8300 extremely limited at this point.”
The government is mulling Indradhanush-II, expanding the scope of banking reforms to get rid of bad loans, manage risks better, bring millions of un-banked and under-banked people into the fold as well as create a holding company for the public sector banks (PSBs).
GLOBAL MARKET
Asian markets are trading mixed red with Nikkei down over 1% on the back of strong yen while China's Shanghai trading flat with negative bias. The annual US China Strategic and Economic dialog talks are scheduled for June 6-7 in Beijing ahead of the Fed's next policy meeting. Meanwhile, US and European markets closed lower after weak US jobs report.
US Nonfarm payrolls data released on Friday indicated that 38,000 jobs were added in May as compared to 123,000 revised in April and unemployment rate dropped to 4.7% in May, the weakest in 6 years. All eyes are set for the Janet Yellen's speech in Philadelphia today for further hints pertaining to a rate hike in FOMC meeting.
STOCKS
HDFC Ergo general insurance company, promoted by Housing Development Finance Corporation has decided to buy L&T General Insurance for Rs 551 crore, first buyout in the general insurance industry. HDFC has gained 0.7%.
Jubilant Life Sciences has jumped 5% on receiving final nod from the US health regulator for generic Levetiracetam injection, used for treatment of epilepsy, in the American market.
A wholly owned US subsidiary of Sun Pharma has decided to divest two oral solid dosage manufacturing facilities to Frontida BioPharma. The stock has climbed 0.6%.
Sumitomo Corp. has acquired 44.98% stake in Excel Crop Care for approximately Rs 623.44 crore and also announced the launch of a Rs.415.80 crore open offer to acquire further 30% stake in the company. The stock has gained 0.7%.
The Leela Group and Qatar's Al Faisal Group on Sunday signed an agreement to build a five-star hotel near Taj Mahal in Agra with an Foreign Direct Investment (FDI) of about Rs 500 crore, coinciding with Prime Minister Narendra Modi's visit to the Gulf state. Hotel Leela Venture has soared over 5%.
Coal India is likely to deliberate on a proposal to buy back its shares in its next board meeting. Coal India had a meeting with the government last week and a buyback proposal is likely to be placed before the next board meeting. The stock has shed over 1%.
KKR India is set to invest about Rs 600 crore in Kwality Ltd, the largest dairy firm in India outside government control, according to media sources. The stock has surged 2%.
