Sensex, Nifty stage smart recovery in fag-end; IT stocks weak, auto rally

CLOSING BELL, JUNE 6, 2023: IKIO Lighting IPO sailed through on the first day itself with 1.2 times subscription till 3:30 PM

3:40 PM

Nifty 50 Losers:: Tech Mah, Infosys slip up to 2%; ONGC down 1%

3:38 PM

Nifty 50 Gainers:: UltraTech Cement gains 3%; Divis Lab, Grasim advance up to 2%

3:36 PM

Sensex 30 Heatmap:: Auto, cement stocks top gainers; IT slip

3:34 PM

CLOSING BELL:: NSE Nifty 50 adds five pts to 18,599

3:33 PM

CLOSING BELL:: S&P BSE Sensex ends flat at 62,793; recovers nearly 250 pts from the day's low

3:28 PM

ALERT:: NHPC inks pact with Maha govt for 7,350 MW contract; stock jumps 2%

NHPC has entered into a Memorandum of Understanding (MoU) with Department of Energy, Government of Maharashtra for establishment of Energy Storage Systems (Pumped Storage Systems) alongwith Other Renewable Energy Source (like Solar/ Wind/ Hybrid etc.) with a total capacity of 7,350 MW.

3:18 PM

e-Rupi to wearables: How 50% of all transactions will be digital in 3 years

Indian households are likely to make at least 50 percent non-cash transactions in the next three years  as penetration of smartphones and the internet, as well as favorable government policies have become key drivers in the adoption of  of digital payments in the country, says a report by Redseer Consultants and Pine Labs. READ MORE

3:08 PM

IPO ALERT:: IKIO Lighting IPO sails through on Day 1; retail portion fully subscribed

IKIO Lighting IPO was fully subscribed as of 3 PM on Day 1 of the offer period. The retail portion was subscribed 1.2 timex, while the non institutional investors portion was subscribed up to 1.6 times. 

3:02 PM

IT cos need to rightsize bench to boost efficiency, stop layoffs: Experts

Top Indian IT services companies need to rightsize their bench strength or utilisation rates to increase efficiencies and prevent layoffs, according to experts. Bench typically refers to those employees who are on the company's payroll but are not involved in any active projects. READ MORE

2:54 PM

ALERT:: Piramal Pharma announces appointment of Jeffrey Hampton as COO; stock down 2%

The company announced appointment of Jeffrey Hampton as President & Chief Operating Officer of the Piramal Critical Care business.

2:43 PM

Expert Take :: Shifting to new expiry will bring in better trader focus on each index

NSE's decision to shift Bank Nifty’s weekly expiry to Friday instead of coinciding it with the weekly expiry of Nifty on Thursday should help bring in better trader focus on each index and result in boosting overall volumes in the two most popular indices in the derivative segment.

Views by: Jay Thakkar, Head Alternate Research, Sharekhan by BNP Paribas

2:38 PM

RBI may set cutoff yield on 10-yr state bonds in 7.32%-7.35% band: Poll

Indian states will aim to raise an aggregate of 173 billion Indian rupees ($2.09 billion) on Tuesday through the sale of bonds maturing in five years to 30 years. READ MORE

2:28 PM

RBI policy preview :: We remain cautious of the impact on housing market

The increase in net absorption by the RBI from Rs 603 bn in April 2023 to Rs 1.75 trn in May 2023, indicates excess liquidity in the banking system. Thus, we expect the withdrawal of accommodation through a moderate, i.e 25bps hike in Standing deposit facility (SDF).

 

In terms of real estate, the implication of the rate hike on home loan demand has been minimal so far. Residential demand has remained upbeat indicating at strong consumer preference towards home ownership despite high interest rate and inflation over the last one year.

However, with economic growth facing headwinds from global slowdown, and the full impact of the high interest rates yet to be seen, we remain cautious of the impact on housing market.

Views by: Shishir Baijal- Chairman and Managing Director, Knight Frank India

2:19 PM

COMMENT on Bank Nifty Friday expiry:: Volatility in Nifty, Bank Nifty expiry likely to reduce

To counter BSE’s move of tweaking the lot size and expiry day of options contracts which had gained popularity due to low charges, NSE has revised the Bank Nifty weekly expiry to Friday of every week. From the investor-trader’s perspective, one of the critical points of consideration is volume, and NSE is still placed much better in market share than BSE, and hence, is most likely to continue its dominance.

 

Secondly, the volatility, particularly in NIFTY, is expected to come down by roughly 20% -22% as the components of Bank Nifty will be more active on Friday's expiry than Thursday's weekly expiry. At the same time, the monthly expiry, which includes stocks of the Bank, will be settled last Thursday. Hence, there are chances of more or less muted monthly Bank Nifty expiry.

 

On the other hand, if we compare only index options OI, 70% of it is of Nifty while 26% is that of Bank, which again hints that volatility in Nifty's weekly and monthly expiry is likely to come down. Moreover, the reduction of lot size from 15 to 10 by the NSE of Bank is also expected to have a significant impact as margins used on Thursday expiry for Nifty options can be used for Bank options expiry on Friday. However, it will be a bit early to comment on the same.

- Rajesh Palviya, SVP - Technical and Derivatives Research, Axis Securities 
 

2:11 PM

NBFC loan sanctions up 2% YoY in Q4, rises in investment sector: Report

Loan sanctions by non-banking finance companies (NBFC) grew 2 per cent year-on-year (YoY) to Rs 4.46 trillion in the fourth quarter of Financial Year 2022-23 (Q4 FY23), said a report on Tuesday. READ MORE