Market Commentary     14-Jun-24
Quick Review
Indices rally for 3rd day; auto shares jump
The key equity benchmarks ended with limited gains on Friday. The Nifty started the day on weak note with dropping to an intraday low of 23,334.25, however the index recovered from this low and extended its gains with hitting fresh record high of 23,490.40 in the late trade. Auto, consumer durables and mid small healthcare stocks advanced while IT and media shares declined.

As per provisional closing, the barometer index, the S&P BSE Sensex, was up 181.87 points or 0.24% to 76,992.77. The Nifty 50 index rose 66.70 points or 0.29% to 23,465.60.

The Nifty50 index hit record high at 23,490.40 in the last trade.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rallied 1.18% and the S&P BSE Small-Cap index added 1.03%.

The S&P BSE Mid-Cap and S&P BSE Small-Cap index hit an all-time high at 46,088.09 and 51,259.06 respectively.

The market breadth was strong. On the BSE, 2,241 shares rose and 1,619 shares fell. A total of 120 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 4.93% to 12.82.

The stock market will be shut on the occasion of Bakri Id on Monday, 17 June 2024.

Economy:

India’s annual rate of inflation based on all India Wholesale Price Index (WPI) number is 2.61% for the month of May 2024 (over May 2023), the Ministry of Commerce & Industry said in a statement on Friday. Positive rate of inflation in May 2024 is primarily due to increase in prices of food articles, manufacture of food products, crude petroleum & natural gas, mineral oils, other manufacturing etc. The month over month change in WPI index for the month of May 2024 stood at 0.20% as compared to April 2024.

India’s merchandise exports in May 2024 rose by 9% to USD 38.13 billion, from USD 34.95 billion in the year-ago month, according to government data released on Friday. Imports too increased by 7.7% to USD 61.91 billion, from USD 57.48 billion in May 2023. Trade deficit, or the gap between imports and exports, during the month under review stood at USD 23.78 billion.

Buzzing Index:

The Nifty Auto index added 1.17% to 25,689.85. The index gained 1.87% in the two consecutive trading sessions.

Bharat Forge (up 4.82%), Samvardhana Motherson International (up 3.55%), Eicher Motors (up 2.76%), TVS Motor Company (up 2.37%), Mahindra & Mahindra (up 2.24%), Balkrishna Industries (up 1.62%), Ashok Leyland (up 1.23%), Tata Motors (up 0.62%), Bajaj Auto (up 0.47%) and Tata Motors-DVR (up 0.23%) edged higher.

On the other hand, MRF (down 0.43%), Bosch (down 0.43%) and Hero MotoCorp (down 0.19%) slipped.

Stocks in Spotlight:

Lupin shed 0.27%. The pharma major said that its injectable facility located at Nagpur has completed the United States Food and Drug Administration (USFDA) inspection with zero observations.

Zydus Lifesciences added 1.89% after the drug major announced that it has received a tentative approval from the United States Food and Drug Administration (USFDA) to market Azilsartan Medoxomil and Chlorthalidone tablets.

Life Insurance Corporation of India(LIC) jumped 5.81% after the reports said that it would enter into health insurance business through acquisitions. Meanwhile, the company informed that it has increased its stake in Dr. Reddy's Laboratories (DRL) from 4.95% to 5.01%.

Ambuja Cements added 1.43% after the company said it will acquire 100% stake in Penna Cement Industries (PCIL) for an enterprise value of Rs 10,422 crore.

Vodafone Idea (VIL) advanced 4.36% after the company announced that its board has approved preferential allotment of around 166 crore fully paid up equity shares in one or more tranches for an aggregating consideration of upto Rs 2,458 crore on preferential basis.

DCX Systems surged 12.76% after the company announced that it has received orders worth Rs 32.20 crore from domestic and overseas customers.

National Aluminium Company added 2.92% after the company said that it has executed a mining lease deed with the State Government of Odisha for an area spread over 697.979 hectares for Bauxite Mines in Pottangi Tehsil, Koraput district.

Jindal Stainless shed 0.04%. The company said that it has acquired remaining 46% stake in Chromeni Steels (CSPL) for total consideration of Rs 277.90 crore.

Lemon Tree Hotels gained 3.14% after the company announced the opening of its ninth property in Rajasthan, Udaipur with Keys Lite by Lemon Tree Hotels.

Suven Pharmaceuticals rallied 7.49% after the company the signing of definitive agreements for acquiring 100% of equity shares of Sapala Organics.

Rites gained 3.63% after the firm signed a memorandum of understanding (MoU) with the Delhi Metro Rail Corporation (DMRC) for consulting on the projects related to metro rail system.

Asian Energy Services shed 0.44%. The company announced the receipt of a letter of award (LoA) from Sun Petrochemicals for three-dimensional seismic data acquisition & processing services for Sunpetro’s fields/blocks in Gujarat.

Cupid rose 0.62%. The company announced that it has received an initial order from Cipla Health to manufacture a range of male condoms under the 'Cipla’ brand.

Railtel Corporation of India rose 0.73%. The company announced that it has received a work order from Tamil Nadu Fibrenet Corporation for amounting to Rs 24.14 crore.

Techknowgreen Solutions gained 5.38% after the company announced that it has secured a work order worth Rs 2.06 crore from Maharashtra Pollution Control Board (MPCB).

Global Markets:

The Dow Jones index futures were down 248 points, indicating a negative opening in the US stocks today.

Markets in Europe declined across the board while Asian stocks ended mixed on Friday.

The Bank of Japan (BOJ) kept its benchmark interest rate unchanged at between 0% and 0.1% but indicated it’s considering the reduction of its purchase of Japanese government bonds after the next monetary policy meeting scheduled for 30 and 31 July 2024.

U.S. stocks continued their historic rally on Thursday, with the S&P 500 and Nasdaq closing at new highs for the fourth consecutive day. Tech stocks led the charge, pushing the Nasdaq Composite up 0.34%.

In a sign that the Federal Reserve might lower interest rates soon, new data showed a rise in unemployment claims last week and an unexpected drop in producer prices for May.

Previous News
  Sanghi Industries allots redeemable preferences shares of Rs 500 cr to Ambuja Cements
 ( Corporate News - 09-Jul-24   13:40 )
  Life Insurance Corporation of India invest Rs 14 cr in Sri Lankan subsidiary
 ( Corporate News - 06-Jul-24   10:49 )
  Sanghi Industries allots RPS aggregating Rs 500 cr to Ambuja Cements
 ( Corporate News - 05-Jul-24   11:29 )
  LIC raises stake in IDFC First Bank
 ( Hot Pursuit - 05-Jul-24   08:43 )
  Vodafone Idea launches new plans
 ( Corporate News - 29-Jun-24   12:20 )
  Board of Ambuja Cements approves merger with Adani Cementation
 ( Corporate News - 27-Jun-24   17:04 )
  Vodafone Idea to conduct EGM
 ( Corporate News - 15-Jun-24   13:55 )
  Indices rally for 3rd day; auto shares jump
 ( Market Commentary - Quick Review 14-Jun-24   15:46 )
  Sensex up 142 pts; VIX slides 5.50%; European mkt decline
 ( Market Commentary - Mid-Session 14-Jun-24   13:39 )
  Barometers turn rangebound; broader mkt outperforms
 ( Market Commentary - Mid-Session 14-Jun-24   12:39 )
  LIC raises stake in Dr Reddy's Lab
 ( Hot Pursuit - 14-Jun-24   11:59 )
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