Trendlyne Marketwatch
Trendlyne Marketwatch
06 Jun 2024
Market closes higher, Zee Entertainment's board approves raising Rs 2,000 crore
By Trendlyne Analysis

 

Nifty 50 closed at 22,821.40 (201.1, 0.9%), BSE Sensex closed at 75,074.51 (692.3, 0.9%) while the broader Nifty 500 closed at 21,365 (310.6, 1.5%). Market breadth is highly positive. Of the 2,152 stocks traded today, 1,829 showed gains, and 287 showed losses.

Indian indices maintained the gains from the afternoon session and closed in the green. The volatility index, Nifty VIX, dropped by 11.1% and closed at 16.8 points. Zee Entertainment Enterprises board approved raising Rs 2,000 crore through the issue of equity shares.

Nifty Midcap 100 and  Nifty Smallcap 100 closed sharply higher following the benchmark index.  Nifty Realty and Nifty Media closed higher than Wednesday’s closing level. According to Trendlyne’s  sector dashboard,  telecommunication equipment emerged as the top-performing sector of the day, with a rise of over 5%.

Most European indices trade in the green. US indices futures trade flat, indicating a cautious start. German factory orders in April contract by 0.2% MoM against estimates of 0.6% growth.

  • Aditya Birla Fashion and Retail sees a short buildup in its June 27 future series as its open interest rises 16.9% with a put-call ratio of 0.8.

  • Indoco Remedies is rising as it receives US FDA approval for an abbreviated new drug application for Canagliflozin and Metformin Hydrochloride tablets. The tablets, a generic equivalent of Ivokamet, are used to treat type 2 diabetes.

  • Realty stocks like Brigade Enterprises, Macrotech Developers, Sobha and Mahindra Lifespace Developers rise more than 4% in trade. All constituents of the the broader Nifty Realty index are also trading in the green, helping it to touch its 52-week high of Rs 1,085.6.

  • Zee Entertainment Enterprises rises as its board approves raising Rs 2,000 crore through the issue of equity shares or any other eligible securities.

  • According to Morgan Stanley, the Indian equity market is experiencing its longest and most robust bull market in history. The brokerage anticipates the S&P BSE Sensex to reach 82,000 by June 2025. It believes the election outcome will likely lead to further structural reforms, supporting its 20% annual earnings growth projection over the next five years.

  • Ventura retains its 'Buy' call on Piramal Pharma with an upgraded target price of Rs 248 per share. This indicates a potential upside of 68.1%. The brokerage believes the company's strategic position across business verticals will drive robust revenue growth and enhance profitability. It expects the company's revenue to grow at a CAGR of 10.2% over FY25-27.

  • Torrent Pharmaceuticals surges to its new all-time high of Rs 2,830.9 per share as it enters a patent licensing agreement with Takeda Pharmaceuticals to commercialize Vonoprazan, a novel gastrointestinal drug, in India.

  • Vedanta surges after the State Bank of India approves its demerger plan, allowing the separation of its existing businesses into six independent entities. The majority of lenders have agreed, with approval pending from a few.

  • According to a poll of economists, the RBI’s monetary policy committee is expected to maintain its status quo on the repo rate at 6.5%, given the recent inflation data and the outlook for food and commodity prices. They believe the central bank will likely start cutting interest rates in the October-December quarter or by H1CY25.

  • Nazara Technologies surges as its arm, Absolute Sports, acquires all assets of SoapCentral for $1.4 million with plans to expand in the entertainment publishing sector in the US.

  • Reports suggest that 33 lakh shares (0.7% equity) of PB Fintech, worth Rs 428.1 crore, change hands in a block deal. The transaction was executed at an average of Rs 1,297 per share.

  • ICIC Securities upgrades Indian Hotels to 'Buy' and sets a higher target price of Rs 640 per share. This indicates a potential upside of 10.6%. The brokerage expects revenue growth driven by an improvement in the new businesses, and an increase in profitability, helped by product premiumisation and cost optimisation. It expects the company's revenue to grow at a CAGR of 10.2% over FY25-27.

  • According to data from Grid India, India's gas-fired power generation experiences a YoY doubling in April and May, reaching 8.9 billion kilowatt-hours (kWh). The data indicates a decline in the share of coal in May to 74% YoY from 75.2%, while the share of gas nearly doubled to 3.1% from 1.6%. Independent Commodity Intelligence Services (ICIS) predicts a 19% increase in LNG demand in India for 2024, with imports projected to surpass 28 million metric tons by 2025.

  • Century Textiles & Industries rises sharply as its subsidiary, Birla Estates, enters into a joint venture with Barmalt India for a luxury residential housing development in Gurugram. The project has a potential development area of 2.4 million sq. ft., with a revenue potential of approx Rs 5,000 crore.

  • Aurionpro Solutions rises as its arm, Integro Technologies, partners with Yoma Bank in Myanmar to explore SME lending operations.

  • Power stocks like NTPC, Adani Power, Power Grid Corp, ABB India, Tata Power, and JSW Energy are surging in trade. All constituents of the broader sectoral index BSE Power are also trading in the green, helping it to rise more than 4%.

  • CK Venkataraman, the Managing Director of Titan Co, notes that the company holds an 8% market share in the jewellery business. However, he anticipates that the margin within this segment will not exceed 12% in the medium term. Venkataraman projects double-digit growth in the wearables segment, with the overall watch portfolio expected to expand by 15-20%. He adds that Titan's emerging businesses will turn EBIT break-even by the end of FY27.

  • UNO Minda surges to its all-time high of Rs 1,016 per share as it signs a technical license agreement (TLA) with China's Suzhou lnovance Automotive. The agreement is to manufacture and supply high-voltage category electric vehicle products for passenger and commercial vehicles in India.

  • Indian Energy Exchange rises as its volumes grow 28.9% YoY to 10,633 MU in May. The company's electricity volumes increase by 21% YoY to 9,568 MU, and the renewable energy certificates surge by 640.3% YoY to 1,055 MU.

  • Rail Vikas Nigam rises sharply as it bags a Rs 391 crore order from the Eastern Railway to construct the Sitarampur bypass line under the Ansol Division.

  • Citigroup lists Hindustan Unilever, Godrej Consumer Products, Britannia, and Honasa Consumer as its ‘Top Buys’, and Colgate, Dabur, and United Breweries as ‘Top Sells’ in the consumer staples space. The brokerage expects volume growth for these companies driven by improvement in consumption and self-help initiatives.

  • KPI Green Energy rises as its arm, Sun Drops Energia, wins orders of 26.2 MW for executing solar power projects.

  • NBCC India rises sharply as it wins multiple orders worth Rs 491.5 crore from the government for construction work.

  • Radhakishan Damani buys a 3.5% stake in Bhagiradha Chemicals & Industries for approx Rs 81.2 crore in a bulk deal on Wednesday.

  • Bharat Heavy Electricals rises sharply as it bags an order worth more than Rs 3,500 crore from Mirzapur Thermal Energy (UP) to set up two 800 MW thermal power projects. As per the contract, BHEL will supply equipment, and set up and commission the projects.

  • Upbeat trading today, as Nifty 50 was trading at 22,719.65 (99.3, 0.4%), BSE Sensex was trading at 75,078.70 (696.5, 0.9%) while the broader Nifty 500 was trading at 21,262.90 (208.5, 1.0%).

  • Market breadth is highly positive. Of the 1,878 stocks traded today, 1,672 were gainers and 169 were losers.

Riding High:

Largecap and midcap gainers today include UNO Minda Ltd. (974.20, 13.1%), Biocon Ltd. (332.75, 9.0%) and Bharat Heavy Electricals Ltd. (277.95, 8.9%).

Downers:

Largecap and midcap losers today include Avenue Supermarts Ltd. (4,687.05, -3.6%), Hindalco Industries Ltd. (677.50, -2.6%) and Pidilite Industries Ltd. (3,089.20, -2.4%).

Movers and Shakers

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

Top high volume gainers on BSE included Century Textiles & Industries Ltd. (2,105.70, 14.3%), UNO Minda Ltd. (974.20, 13.1%) and Aegis Logistics Ltd. (791.15, 12.2%).

Top high volume loser on BSE was Anupam Rasayan India Ltd. (771.70, -0.4%).

Elgi Equipments Ltd. (609.90, 3.4%) was trading at 8.4 times of weekly average. Avanti Feeds Ltd. (565.35, 8.1%) and Eris Lifesciences Ltd. (977.85, 6.6%) were trading with volumes 6.6 and 4.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

33 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Aegis Logistics Ltd. (791.15, 12.2%), Amara Raja Energy & Mobility Ltd. (1,277.50, 4.9%) and Bajaj Auto Ltd. (9,701.45, 1.0%).

65 stocks climbed above their 200 day SMA including CreditAccess Grameen Ltd. (1,500.30, 6.8%) and APL Apollo Tubes Ltd. (1,572.10, 6.8%). 1 stock slipped below their 200 SMA including IndusInd Bank Ltd. (1,481.10, -1.3%).

 
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