Trendlyne Analysis

Nifty 50 closed in the red, with the Indian volatility index, India VIX, falling below 20%. The Reserve Bank of India (RBI) increased the repo rate by 50 bps to 4.9% as it withdrew its ‘accommodative stance’ for economic growth. RBI retained the FY23 real GDP growth estimate at 7.2%. The World Bank cut India’s economic growth forecast for the current fiscal to 7.5% from 8% due to rising inflation and supply chain disruptions. Most Asian indices closed higher, tracking the US indices, which closed in the green on Tuesday. US indices rose led by technology and energy stocks. S&P 500 rose close to 1% while Dow Jones increased by 0.8% on Tuesday. Brent crude oil edges higher and trades above $120 per barrel ahead of US oil inventories data release. European indices trade lower than Tuesday’s levels as investors assess the impact of aggressive monetary policy tightening on global economic growth.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, tracking the benchmark index. Nifty Media and Nifty Realty closed higher than Tuesday’s levels. Nifty IT closed in the green, tracking the tech-heavy NASDAQ 100, which rose 0.9% on Tuesday.

Nifty 50 closed at 16,356.25 (-60.1, -0.4%), BSE Sensex closed at 54,892.49 (-214.9, -0.4%) while the broader Nifty 500 closed at 13,886.90 (-48.7, -0.4%)

Market breadth is in the red. Of the 1,877 stocks traded today, 755 showed gains, and 1,079 showed losses.

• GlaxoSmithKline Pharmaceuticals, Tube Investments of India, Bajaj Holdings & Investment, and ZF Commercial Vehicle Control Systems India are trading with higher volumes as compared to Tuesday.

• Deepak Nitrite sees a short build-up in its Jun 30 futures series as its open interest rises 16.2% with put to call ratio at 0.52.

• Stocks like Mangalore Refinery And Petrochemicals, Praj Industries, Elgi Equipments, TCNS Clothing Co., Engineers India, TV18 Broadcast and PNB Housing Finance rise by more than 5% in trade today.

• Stocks like Aditya Birla Sun Life AMC, Symphony, Birla Corporation, and JK Cement, among others, are in the oversold zone according to the technical indicator relative strength index or RSI.

• ICICI Direct maintains a “Buy’ rating on MM Forgings with a target price of Rs 1,250, indicating an upside of 40%. The brokerage expects robust revenue growth for the company on healthy demand growth, new product launches, and an increasing share of machining in its product profile. The brokerage estimates the company’s profit to grow at a 39% CAGR over FY22-24.

• One97 Communications (Paytm) rises as Reserve Bank of India (RBI) proposes the linking of credit cards to UPI platforms. RuPay credit cards will be the first to be linked to UPI platforms.

• Central Banks of the major economies have begun to respond to inflation by tightening their monetary policies. After the RBA, RBI also raised its policy rate by 50 bps.

  Monetary policy: RBI moves at speed. 50 bps now, total 90 in a month. Similar steps by global central banks to catch up.Australia did 50. US Fed 50 more likely next week.Let’s watch liquidity over next 9 months as US embarks on QT(quantitative tightening). And food, fuel, war!

  — Uday Kotak (@udaykotak) June 8, 2022

• Sapphire Foods India and The New India Assurance Company touch their 52-week lows of Rs 932.5 and Rs 95.8 respectively. Both stocks are trading lower for the sixth consecutive day.

• YES Bank gains as it initiates the process of setting up an alternate board in line with the YES Bank Reconstruction Scheme March 2020. The constitution of the alternate board will be recommended for approval to shareholders at the annual general meeting on July 15.

• Biocon is trading lower and hit an over two-year low of Rs 312. In the past six weeks, shares of the pharmaceutical company is down 18% after it reported a 4% YoY fall in consolidated net profit to Rs 283.9 crore in Q4FY22.

• Lupin is rising after it gets a tentative nod from the US FDA to market ivacaftor tablets. Ivacaftor is used to treat specific types of cystic fibrosis, a hereditary disease that causes problems with breathing, digestion, and reproduction in adults. The drug will be manufactured at its Nagpur facility. Ivacaftor tablets have an estimated annual sales of $109 million in the US, according to IQVIA.

• PNB Housing Finance is trading with more than 14 times its weekly average trading volume. Engineers India, Sterlite Technologies, GlaxoSmithKline Pharmaceuticals, and Mangalore Refinery And Petrochemicals are trading at more than three times their weekly average trading volumes.

• ICICI Direct maintains a ‘Buy’ rating on TCI Express with a target price of Rs 2,000, indicating an upside of 21%. The brokerage remains positive on the company’s prospects due to its strong free cash generation, better margins from new businesses, and robust capital structure. The brokerage expects the company’s revenue to grow at a 20.8% CAGR over FY22-24

• Reserve Bank of India increases repo rate by 50 bps to 4.9% as it withdraws its ‘accommodative stance’ for economic growth. Marginal Standing Facility (MSF) and bank rate stand at 5.15%.

• Realty stocks like DLF, Macrotech Developers, Godrej Properties, Oberoi Realty, among others, are on the rise, after RBI doubles cooperative banks’ housing loan limits. The broader sectoral index Nifty Realty is also trading in the green.

  Realty Sector top gainers
  
  DLF, Sobha, Lodha at days high https://t.co/WvI3m1Fk2s

  — Yatin Mota (@YatinMota) June 8, 2022

• Ramkrishna Forgings receives an export order worth Rs 115 crore from a European supplier for a new differential housing case business.

• ITD Cementation is rising as it receives an order for a road construction project worth Rs 4,850 crore. The project involves the construction of a six-lane greenfield expressway in Uttar Pradesh on an EPC (Engineering, Procurement and Construction) basis.

• Indian rupee appreciates 9 paise to Rs 77.69 against the US dollar in early trade today.

• FMCG stocks like Hindustan Unilever, ITC, Nestle India, Britannia Industries, Tata Consumer Products, among others, are falling in trade due to rise in Covid cases. The broader sectoral index Nifty FMCG is also trading in the red.

  FMCG stocks fall amid rise in #Covid cases, surge in oil prices. #BQStocks
  
  Read all #stockmarket updates: https://t.co/0i3IwDkcYB pic.twitter.com/oRGoAanMNj

  — BQ Prime (@bqprime) June 8, 2022

• Adani Power invests a total of over Rs 609 crore in Support Properties and Eternus Real Estate to acquire 100% stake in them. The companies will help Adani Power set up infrastrcuture facilities.

• Zomato board will meet on June 17 to consider the acquisition of quick commerce company Blinkit, according to reports. The value of the final deal is yet to be finalized. Blinkit’s largest investor SoftBank Vision Fund will get a 4% stake in the company. The deal will involve a stock swap in the ratio of 1:10, where Zomato gets 10 shares of every one share of Blinkit.

Riding High:

Largecap and midcap gainers today include Macrotech Developers Ltd. (1,099.60, 5.07%), SBI Cards and Payment Services Ltd. (784.90, 2.65%) and Dalmia Bharat Ltd. (1,269.70, 2.58%).

Downers:

Largecap and midcap losers today include Gujarat Gas Ltd. (489.10, -7.03%), Deepak Nitrite Ltd. (1,798.45, -4.84%) and Polycab India Ltd. (2,314.10, -4.31%).

Volume Shockers

22 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included TV18 Broadcast Ltd. (45.00, 10.84%), Mangalore Refinery And Petrochemicals Ltd. (118.00, 9.11%) and Dishman Carbogen Amcis Ltd. (129.40, 8.65%).

Top high volume losers on BSE were Gujarat Gas Ltd. (489.10, -7.03%), Mas Financial Services Ltd. (507.90, -5.84%) and Polycab India Ltd. (2,314.10, -4.31%).

PNB Housing Finance Ltd. (345.20, 4.59%) was trading at 18.1 times of weekly average. Engineers India Ltd. (62.90, 4.75%) and Hawkins Cookers Ltd. (5,211.00, 0.30%) were trading with volumes 11.9 and 8.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

1 stock took off, crossing 52-week highs, while 13 stocks tanked below their 52-week lows.

Stock touching their year highs included - Mangalore Refinery And Petrochemicals Ltd. (118.00, 9.11%).

Stocks making new 52 weeks lows included - Biocon Ltd. (320.55, 1.20%) and Birla Corporation Ltd. (856.75, -0.43%).

11 stocks climbed above their 200 day SMA including Network 18 Media & Investments Ltd. (80.05, 5.47%) and Aster DM Healthcare Ltd. (193.55, 2.14%). 18 stocks slipped below their 200 SMA including Polycab India Ltd. (2,314.10, -4.31%) and Aegis Logistics Ltd. (216.90, -3.21%).