Market Commentary     21-Jun-24
Quick Review
Nifty ends around 23,500; media index outperforms
The key equity indices ended with modest losses on Friday. The Nifty settled near the 23,500 level after hitting day’s high of 23,667.10 in morning trade. FMCG, PSU bank and oil & gas stocks declined while media, IT and consumer durables shares declined.

As per provisional closing data, the barometer index, the S&P BSE Sensex was down 269.03 points or 0.35% to 77,209.90. The Nifty 50 index declined 65.90 points or 0.28% to 23,501.10. The Nifty clocked an all-time high of 23,667.10 in early trade.

In the broader market, the S&P BSE Mid-Cap index declined 0.26% while the S&P BSE Small-Cap index added 0.06%.

The S&P BSE Small-Cap index hit an all-time high at 52,272.55.

The market breadth was weak. On the BSE, 1,786 shares rose and 2,081 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, declined 1.03% to 13.21.

Economy:

According to a Flash survey by HSBC Holdings Plc, India's service purchasing managers' index climbed to 60.4 from 60.2 last month, while the manufacturing purchasing managers' index rose to 58.5 from 57.5 in May. That drove the composite PMI to 60.9 from 60.5 the previous month.

Output growth across India's private sector regained some of the momentum lost in May, with business activity increasing at quicker rates among manufacturing firms and their services counterparts. The HSBC Flash India PMI data, compiled by S&P Global, also showed a substantial upturn in aggregate employment amid robust expansions in total new orders intakes and international sales. Meanwhile price pressures receded.

IPO Update:

The initial public offer (IPO) of Stanley Lifestyles received 99,32,160 bids for shares as against 1,02,41,507 shares on offer, according to stock exchange data at 15:15 IST on Friday (21 June 2024). The issue was subscribed 0.97 times.

The issue opened for bidding on Friday (21 June 2024) and it will close on Tueday (25 June 2024). The price band of the IPO is fixed between Rs 351 to Rs 369 per share. An investor can bid for a minimum of 40 equity shares and in multiples thereof.

The initial public offer (IPO) of DEE Development Engineers received 1,17,86,78,659 bids for shares as against 1,49,44,944 shares on offer, according to stock exchange data at 15:15 IST on Friday (21 June 2024). The issue was subscribed 78.87 times.

The issue opened for bidding on Wednesday (19 June 2024) and it will close on Friday (21 June 2024). The price band of the IPO is fixed between Rs 193 to Rs 203 per share. An investor can bid for a minimum of 73 equity shares and in multiples thereof.

The initial public offer (IPO) of Akme Fintrade (India) received 35,42,20,250 bids for shares as against 78,65,000 shares on offer, according to stock exchange data at 15:15 IST on Friday (21 June 2024). The issue was subscribed 45.04 times.

The issue opened for bidding on Wednesday (19 June 2024) and it will close on Friday (21 June 2024). The price band of the IPO is fixed between Rs 114 to Rs 120 per share. An investor can bid for a minimum of 125 equity shares and in multiples thereof.

Buzzing Index:

The Nifty FMCG index slipped 1.20% to 55,990.10. The index rose 0.04% in the past trading session.

Marico (down 3.03%), Dabur India (down 1.79%), Hindustan Unilever (down 1.63%), Tata Consumer Products (down 1.62%), Varun Beverages (down 1.61%), Nestle India (down 1.56%), United Breweries (down 1.1%), Colgate-Palmolive (India) (down 1.05%), ITC (down 0.93%) and Britannia Industries (down 0.92%) declined

Stocks in Spotlight:

Hindustan Zinc advanced 2.41% after the zinc producer said that it has signed a memorandum of understanding (MoU) with AEsir Technologies to innovate the battery storage space.

Sun Pharmaceutical Industries shed 0.34%. The company said that it has entered into a non-exclusive patent licensing agreement with Takeda Pharmaceutical Company (Takeda) to commercialise Vonoprazan tablets in India under the brand name "Voltapraz”.

Oil and Natural Gas Corporation (ONGC) shed 0.09%. The company announced that its board approved the appointment of Devendra Kumar as the chief financial officer (CFO) with immediate effect from 20 June 2024.

Bank of Baroda slipped 2.10%. The bank announced that it has appointed Chayani Manoj Sundar as the chief financial officer (CFO) with effect from 21 June 2024.

Mrs. Bectors Food Specialities slipped 2.45%. The company announced that its board of directors has approved the proposal for raising of funds upto Rs 400 crore by issuance of any method or securities.

JSW Infrastructure gained 1.98% after the firm said that it has incorporated a wholly owned subsidiary, JSW Port Logistics on 19 June 2024.

GE Power India rallied 2.86% after the power generation and transmission equipment maker said it has received a letter of intent (LoI) from NTPC GE Power Services (NGSL) for renovation of steam turbines.

Amara Raja Energy & Mobility rose 0.62%. The company has agreed to further invest Euro 20 million, including a subscription for an additional 4.5% equity stake in InoBat AS.

Time Technoplast soared 12.86% after the company said that it has received final approval from Petroleum and Explosives Safety Organization (PESO) for manufacturing and supply of high-pressure type-iv composite cylinders for hydrogen.

Kirloskar Pneumatic Company (KPCL) jumped 3.86% after the company said that it has entered into a memorandum of understanding (MoU) to acquire 54.55% equity stake in Systems & Components India (S&C).

Global Markets:

European market declined on Friday as Carlsberg shares fell sharply after U.K. soft drinks maker Britvic confirmed it had rejected two unsolicited takeover proposals from the Danish drinks giant.

Most Asian stocks traded lower after Japan’s May inflation data came in slightly cooler than expected.

In Japan, core inflation, which excludes volatile fresh food prices, rose for the first time in three months in May. The increase was driven by higher prices for nonperishable goods and came in at 2.5% year-over-year, exceeding the central bank's 2% target.

Across the Pacific, the US stock market experienced some volatility Thursday. The S&P 500 briefly surpassed the 5,500 mark before retreating. The technology sector faced pressure, leading the Nasdaq 100 lower after a week-long winning streak. Declines in Nvidia Corp. and Apple Inc. were key contributors to the tech sector's weakness. However, the Dow Jones Industrial Average bucked the trend and gained around 300 points.

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