Indian indices failed to hold gains after opening at a record high on Monday. Asian markets saw a mixed opening amid fears due to a rise in covid cases. All eyes will be on China’s official factory activity data due Wednesday and a US jobs data report due at the end of the week.
Raised issue of Indians with covishield jabs facing problems with travel to EU with higher authorities: SII’s Adar Poonawalla
Yash Gupta equity research associate, Angel Broking Ltd on Thyrocare-Pharmeasy deal
Dr Valumani, promoter of Thyrocare Technology Ltd, has entered into agreement to sell his entire holding (66.1%) in Thyrocare to Pharmeasy for total value of ₹4,546 crores (1,300 per share). Pharmeasy’s parent company will make an open offer to acquire an additional 26% stake in Thyrocare at 1,300 per share. Currently, the stock is trading at around 1,370 per share and we expect the stock to remain in this range for some time. Short term investors should book profits rather than applying for the open offer. Long term investors should remain invested and wait for fresh buying opportunities. Pharmeasy has a platform along with a good client base, which will elevate Thyrocare’s low-price high-volume business to the next level. We expect the stock to perform well upon completion of this open offer.
Bank privatisation panel to forward candidates for cabinet nod
Bank privatisation panel headed by cabinet secretary has finalised names for cabinet approval, CNBCTV18 reported, citing people familiar with the matter. Indian Overseas Bank and Central Bank are main candidates, according to the people. The finance ministry is working on legislative amendments regarding privatisation of government banks.
Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking Ltd on gold trajectory
“Spot gold ended the week with marginal fall of 0.2% as mixed signs on the stance of the US Federal Reserve in the times ahead kept the markets cautious. The fall in the precious metal was limited as the US infrastructural bill pressured the Dollar. Gold prices also found some support earlier in the week after US Federal Reserve chairman Jerome Powell stated that the rising inflation won’t be the sole factory behind any rate hike. However, soon after Fed chair’s comments eased markets concerns, few Fed officials projected a period of high inflation in the world’s largest economy. Prospects of a persistent increase in price levels reignited chances of a tighter monetary policy which kept the markets cautious. The losses for the yellow metal were capped on bets on a potential inflation as it is widely considered as a hedge against inflation.
While prospects of shift in the monetary approach by the US central bank is expected to weigh on the gold; mounting inflation concerns might keep the prices in check in the week ahead.”
Sameet Chavan, chief analyst-Technical and Derivatives, Angel Broking, on Nifty
“In our previous weekly commentary, we had advocated some caution considering the formation of ‘Hanging Man’ pattern on weekly chart. To activate this, the prices should have slipped below the low i.e. 15,450 in this case. But since it reversed from 15,500, the pattern was not confirmed. Also, we had shared our observation on the placement of the NIFTY MIDCAP 50 index around some crucial levels. All these negative developments have not been completely negated yet; but the kind of up move we witnessed in BANKNIFTY on Friday’s session, the bulls seem to have upper hand here. Hence, banking becomes a deciding factor going ahead. A follow up move in the coming sessions would definitely push the Nifty towards its much awaited milestone of 16,000 and may even extend towards 16,200 later. Hence, it would be interesting to see how things pan out in the banking space. As far as supports are concerned, the immediate levels are placed at 15,700 – 15,670 and the base is to be seen at 15,450 now. Till the time market defends these important supports, the short term trend remains bullish. But having said that we would still reiterate that one should avoid being complacent and it’s better to continue with the strategy of ‘one step at a time’. Because although it’s difficult to time it, whenever any rally overstretches without giving any meaningful correction, the market tends to surprise anytime. So to be on the safer side, try to avoid aggressive leveraged positions overnight.”
Dodla Dairy lists at 28.5% premium over issue price
Shares of Dodla Dairy Ltd made a strong debut on the exchanges on Monday, listing at ₹550, a 28.5% premium from its issue price of ₹428 apiece. Dodla Dairy’s ₹520 crore initial share-sale was subscribed 45.62 times at a price band of ₹421-428 apiece during the share sale between 16 June and18 June. (Read here)
KIMS shares receive strong listing
Krishna Institute of Medical Sciences or KIMS shares registered strong listing today at BSE and NSE. At BSE, KIMS shares got listed at ₹528 while at the NSE, KIMS IPO listing took place at ₹550 per equity shares. Immediately after the listing, KIMS share price soared to its intraday high of ₹1,059 while its intraday low stands at ₹956 at NSE. According to market observers, KIMS IPO listing is in sync with the grey market expectations as the KIMS IPO GMP today was ₹110, which is quite close to both NSE and BSE listing of the KIMS shares. (Read here)
Rupee falls 6 paise to 74.26 against US dollar in early trade
IT top drag
Affle Global claims victory in IndusOS lawsuit, PhonePe refutes
Digital advertising platform, Affle Global Pte. Ltd. (AGPL) claims that it has won the arbitration case against digital payments company, PhonePe, after opposing the latter’s acquisition attempt of app discovery platform IndusOS, at the Singapore High Court (HC). (Read here)
Covid update: India reports 46,148 new cases, 979 deaths in last 24 hours
As many 46,148 new COVID-19 cases were reported in India in the last 24 hours, taking the cumulative count of infections to 3,02,379,331, informed the Union Health Ministry on Monday. India also reported 979 deaths in last 24 hours, taking the total death tally to 3,96,730.(Read here)
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments on Nifty trajectory
“The Nifty is again facing resistance at the 15,900 level. If we are successful in getting past it, we should be heading to 16,100 as the next target point. 15,700-15,750 is a good support range for the markets and if we can continue to respect that, every dip can be utilized to accumulate long positions for higher targets.”
Strides Pharma gains
Strides Pharma Science Ltd’s stock was trading at ₹769.60 apiece, up 1.42% at 9:39 am. The company said that the National Institute of Pharmacy and Nutrition (OGYÉI), Hungary completed an EU Good Manufacturing Practices inspection at its Puducherry facility on 28 April.
Indian game streaming startup Loco gets Krafton’s backing
Loco, an Indian streaming platform for video games, received $9 million from investors including South Korean gaming company Krafton Inc. in its first fundraising effort to capitalize on the growing popularity of games-based entertainment in the South Asian nation.The Mumbai-based startup was also backed in its seed round by the likes of Lumikai Ltd., India’s first gaming media fund, London-based Hiro Capital and early stage investors including 3one4 Capital and Axilor Ventures. Loco will use the funds to upgrade its technology and content, the startup said in an announcement Monday. (Bloomberg)
Indians invest billions in cryptocurrencies Bitcoin, Dogecoin, Ether despite RBI’s concerns on crypto
The cryptocurrency aficionados’ mantra that Bitcoin is equivalent to digital gold is winning converts among the world’s biggest holders of the precious metal. In India, where households own more than 25,000 tonnes of gold, investments in crypto grew from about $200 million to nearly $40 billion in the past year, according to Chainalysis. That’s despite outright hostility toward the asset class from the central bank and a proposed trading ban. (Read here)
Benchmark Indian equity indices opened at an all time high on Monday. The Sensex opened at 53,031.46, up 106.42 points, or 0.20%, while the Nifty was at 15,915.35, up 55.00 points, or 0.35%. ONGC, Grasim, Tata Steel and RIL were top gainers.
The Sensex was at 53,127.91, up 202.87 points, or 0.38% at market pre-opening, while the Nifty was at 15,860.35, up 69.90 points, or 0.44% at 9:07 am.
SoftBank Group mulls first overseas bond sale since 2018
SoftBank Group Corp. hired banks for a potential sale of dollar and euro bonds, in what would be its first overseas debt sale in three years. The Japanese technology conglomerate mandated Deutsche Bank AG, Barclays Plc and HSBC Holdings Plc for a possible offering of notes with tenors from three years to 12 years, according to a person familiar with the matter, who isn’t authorized to speak publicly and asked not to be identified. The company previously sold U.S. currency and euro-denominated notes in 2018. (Bloomberg)
Didi’s $4 billion IPO order books to close Monday – sources
Didi Global Inc will close the investors order book for its U.S. IPO to raise up to $4 billion one day early on Monday, according to two sources with direct knowledge of the matter. The sources could not be named as the information is not yet public. Didi did immediately respond to a request for comment. The books will close at 5pm in each region on Monday, people familiar with the matter said. (Reuters)
Dr Reddy’s announces commercial launch of DRDO formulated 2-DG drug
Dr Reddy’s Laboratories has announced the commerical launch of the covid drug 2-deoxy-D-glucose (2-DG) drug, according to a regulatory filing. The drug, found to help speed up recovery from covid and reduce oxygen dependence, has been developed jointly by the Institute of Nuclear Medicine and Allied Sciences, a lab of the DRDO, in collaboration with Dr Reddy’s Laboratories, Hyderabad.
Gold ticks up on weaker dollar, tame inflation data
Gold prices inched higher on Monday, as the dollar eased and tamer-than-expected US inflation data allayed fears of an early monetary policy tightening by the Federal Reserve. Spot gold was up 0.1% at $1,781.19 per ounce by 01:09 GMT. US gold futures rose 0.1% to $1,780.30.
Abu Dhabi Investment Authority picks up minority stake in Mobikwik
The UAE’s sovereign wealth fund Abu Dhabi Investment Authority has picked up a minority stake in the IPO-bound digital payments player Mobikwik for nearly $20 million (about ₹150 crore), valuing it at $700 million, the company has said. The company was in bad press in March after alleged massive data theft, following which the Reserve Bank of India (RBI) had ordered a forensic audit on the Gurugram-based company set up in 2009. Personal data of its about 10 million customers were allegedly stolen by hackers.
IL&FS receives ₹1,925 cr as termination payment for metro project
IL&FS said it has received ₹1,925 crore from Haryana Shehari Vikas Pradhikaran (HSVP) as interim termination payment in the Gurgaon Metro Project case. This payment, duly received in escrow accounts, comes in compliance with the Supreme Court’s order of 26 March 2021, that ruled in favor of IL&FS in the Gurgaon Metro Project-developed via ILFS subsidiaries and Special Purpose Vehicles-Rapid Metro Rail Gurgaon Ltd (RMGL) and Rapid Metro Rail Gurgaon South L (RMGSL). (Read here)
After Air India, Cairn to target more state companies to recover money due from govt
After Air India, Britain’s Cairn Energy PLC plans to target assets of state-owned firms and banks in countries from the US to Singapore as it looks to ramp up efforts to recover the amount due from the Indian government after winning an arbitration against levy of retrospective taxes. (Read here)
Markets are likely to be volatile on Monday while trends in SGX Nifty suggest a flat opening of Indian benchmark indices. On Friday both the benchmark indices Sensex and Nifty hit record high. The BSE Sensex ended at 52,925.04, up 226.04 points or 0.43%. The Nifty was at 15,860.35, up 69.90 points or 0.44%.
Stocks to Watch
Ashok Leyland, Cadila, DLF, IndiGo, NTPC, PNB Housing, among other stocks may be in the news today. (Read here)
Tata Steel to SAIL — experts recommend buy on these commodity stocks
After the strong beginning of July series on Friday, stock market experts are busy recommending stocks that can outperform the market in upcoming trade sessions. In this regard, they recommend investors to look at commodity stocks predicting better return in such stocks in comparison to other sector stocks. Speaking on shares to buy when the market opens on Monday, they recommended Tata Steel and Steel Authority of India (SAIL) stocks and said that demand for steel is expected to continue moving northward in next few months and hence these stocks may pick momentum after the recent profit-booking. (Read here)
Indian economy takes a breather in May before gaining momentum as covid recedes
India’s economy showed more signs of cooling in May, but the weakness is already beginning to dissipate of late as the nation exits lockdowns imposed to check the pandemic’s spread.
A slew of data from services activity to automobile sales pointed to lack of demand last month, which in turn kept the needle on an overall activity indicator unchanged at 6. The relatively strong score is because the gauge uses the three-month weighted average rates to smooth out volatility in the single-month readings. (Read here)
Asian markets open on a cautious note
Asian shares got the week off to a cautious start on Monday as a spike in coronavirus cases across Asia over the weekend hurt investor sentiment while oil hovered around 2-1/2 year highs. MSCI’s broadest index of Asia-Pacific shares outside Japan was last a shade weaker at 703.17, still near a two-week high of 705.35 made on June 16. Australian shares slipped 0.3% while South Korea’s KOSPI index was slightly higher. Japan’s Nikkei was 0.1% weaker. Investors were concerned about a spike in coronavirus infections in Asia with Australia’s most populous city of Sydney plunging into a lockdown after a cluster of cases involving the highly contagious Delta strain ballooned.
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