Ultratech Cements, LTIMindtree, NTPC, Grasim Industries, and Wipro were the top gainers in the Nifty 50. While Shriram Finance, L&T, Divi’s Lab, Bajaj Auto, and Eicher Motors were the major losers in the Nifty 50 on June 27.

“We raise FY25E core EPS by 9% and FY26E-27E core EPS by 13%. Dr Reddy’s Lab trades at 15.2x FY25E core earnings. After the 7% correction in the past four months and significant underperformance versus peers in the past year, we find the stock attractive,” said Elara Securities on Dr Reddy’s Laboratories. “We had recently upgraded the company to “Accumulate (rating).” And led by the above-mentioned factors, we further upgraded the company to “Buy” from “Accumulate” and raised our target price from Rs 6,981 to Rs 7,328, which is 17x FY26E core earnings plus cash per share. Increased price erosion in the US generics market is the key risk.”

On Wednesday, spot gold fell further due to inflation concerns and hawkish Fedspeak to close with a loss of 0.87% at $2299. The ten-year US yield surged over 2% to close at 4.33%, the highest level since June 11. Consequently, the US Dollar Index regained the 106 level to close with a gain of 0.42%.

Inflation concerns have resurfaced after Canada’s higher-than-expected inflation data. On Tuesday, Australia reported uncomfortably higher-than-expected inflation numbers. The monthly CPI indicator rose 4% for May, which was higher than April’s 3.6%, and well above the 3.8% forecast. The data raised concerns that the Reserve Bank of Australia may have to raise benchmark rates yet again.

Today’s US data include pending home sales, durable goods orders, weekly jobless claims and more importantly, Q1 GDP (final reading).

“Gold is expected to trade with a bearish bias as sellers eye the test of the crucial support at $2277, a breach of which will put $2225 as the next major downside target. Resistance is at $2315/$2345,” said Praveen Singh, Associate Vice President of Fundamental Currencies and Commodities at Sharekhan by BNP Paribas.

Commenting on the Dollar Rupees outlook Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas said that Indian Rupee appreciated by 0.1% on bond-related foreign inflows ahead of their inclusion in the JP Morgan debt index. Domestic markets touched fresh record highs with the NIFTY breaching the 24,000 mark for the first time, also supported the domestic currency. However, a strong US Dollar and Dollar demand from OMCs capped sharp gains. US Dollar gained on Wednesday on positive US markets and hawkish Fedspeak.

Choudhary also added that We expect Rupee to trade with a slight negative bias on strong US Dollar and surge in crude oil prices. Dollar demand ahead from OMCs and importers to meet their obligations towards the end of the month may also weigh on the Rupee. However, fresh foreign inflows and positive tone in the domestic equities may support the Rupee. Traders may take cues from final Q1 GDP, weekly unemployment claims, durable goods orders, and pending home sales data from the US. Investors may remain cautious ahead of core PCE data from the US this week. USDINR spot price is expected to trade in a range of Rs 83.20 to Rs 83.80.

Courtesy: NSE

LTIMindtree, Grasim, UltraTech Cement, Wipro, and Dr Reddy’s Lab are the top gainers on NSE Nifty 50 index whereas the top laggards include Shriram Finance, ONGC, Coal India, L&T, and Bajaj Auto.

Shares of The India Cements rallied almost 14% to hit a fresh 52-week high of Rs 298.80m after the board of UltraTech Cements approved acquiring a 23% stake in India Cements for a sum of Rs 1,885 crore. India Cements’ upper price band is kept at Rs 302.01.

Grasim Industries, LTIMindtree, Ultratech Cements, Wipro, and JSW Steel were the top gainers in the Nifty 50. While Shriram Finance, L&T, Coal India, Bajaj Auto, and Bajaj Finance were the major losers in the Nifty 50 on June 27.

Courtesy: BSE

“The gems & jewellery industry looks forward to amendments in the SEZ Act, which has been a long-standing demand. The SEZ Act hasn’t been amended as per the progress that the industry has made, both domestically and globally, throughout these years. This move will play a crucial role in resolving the issues that exporters are facing about policies in the gems and jewellery industry as well as other industries in the SEZs. As a result, it will further provide a major fillip to the exports, especially during the challenging times in the global markets,” said Colin Shah, MD of Kama Jewelry.

“Additionally, we request the Finance Minister to look at rationalising duty on precious metals bars, especially gold and platinum bars from 15% to 4%. High duties have led to a consistent rise in cases of smuggling and impacted the FTAs negatively, which has further aggravated challenges for the industry. Hence, rationalizing the duty will help in controlling the cases of smuggling and will also help the consumers in the country get cost benefits.”

The NSE Nifty 50 was up 86 points or 0.36% at 23,955, while the BSE Sensex was up 321 points or 0.41% at 78,996.

Foreign portfolio flows are poised to return to India in the second half of the year, according to a note from top brokerage Jefferies. The note indicates that foreign institutional investors are now seeking new investment opportunities in sectors such as real estate, capital goods, and public sector undertakings (PSUs).

Jefferies highlighted a growing interest among investors in India, fueled by the country’s projected 7% GDP growth and a market capitalization target of $5 trillion.

Courtesy: NSE

Shares of PI Industries surged over 5%, reaching an intraday high of Rs 3,950 on the NSE, following news that a wholly-owned subsidiary is set to acquire the entire share capital of Plant Health Care Plc. Plant Health Care Plc, a UK-based company specializing in agricultural biological inputs, will be acquired for £32.78 million. The acquisition will encompass the entire 100% stake of Plant Health Care Plc, which is listed in the UK and operates subsidiaries in the US, Brazil, Mexico, and other countries. Known for its patented peptide-based biological products, Plant Health Care Plc is a key player in the global agricultural market. The transaction is expected to be completed within three months.

Commenting on the Gold and Silver outlook Renisha Chainani, Head Research – Augmont – Gold For All said that Gold and Silver are trading very near their support level of $2300 (Rs 70800) and $29 (Rs 86000) on FED’s hawkish stance, Dollar strength and higher US bond yields. However, Geopolitical tensions and political uncertainty will support the prices from free fall.

Chainani also added that the Fed anticipated only one rate cut in 2024, but markets are still pricing in a higher likelihood of the Fed’s first rate cut in September and around two 25 basis point cuts by the year-end. Traders also appear hesitant ahead of the US presidential debate, the publication of US GDP data today, and the Fed’s favourite inflation barometer, the PCE Price Index, tomorrow.

The Nifty Bank index crossed 53,000 mark for the first time and trading at intra-day high of 53,180.75 led by Axis Bank, Kotak Mahindra Bank, IDFC First Bank, ICICI Bank, Federal Bank, and Bank of Baroda.

Reliance Industries’ share price jumped over 1%, reaching a record high of Rs 3,069 on the NSE. This surge comes as Jio has strengthened its leadership position by acquiring the right to use spectrum in the 1,800MHz band in two circles for a provisional cost of Rs 973.63 crore.

“The Bank Nifty index continued its strong momentum, just shy of the 53,000 mark where fresh call writing is visible. The undertone remains bullish, and a buy-on-dip approach is advisable with immediate strong support at the 52,500-52,400 level. The index has witnessed aggressive put writing at lower levels, indicating strong support,” Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities. 

The shares State Bank of India trade marginally lower at Rs 843.10 on the following news that the country’s largest bank, announced it had raised Rs 10,000 crore through its fifth infrastructure bond issuance at a coupon rate of 7.36%. The issuance received an overwhelming response, with bids exceeding Rs 19,884 crore, oversubscribing the base issue size of Rs 5,000 crore by nearly four times. A total of 143 bids were received, indicating broad participation and a diverse range of investors.

Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said The Nifty continues to rise on the back of strength in the banking giants. The Nifty moved above 23,700 to make a new all-time high of 23,754, showing resilience amid global sluggishness. Put writers were very active at 23,600 and 23,700, while call writers unwound their positions, causing the PCR to rise. In the short term, the trend might remain strong as long as it stays above 23,500. On the higher end, the index might continue moving towards 24,000 in the near term.

UltraTech Cement, Dr Reddy’s Lab, Grasim, JSW Steel, and Tata Steel are the top gainers on NSE Nifty 50 index whereas the top laggards include Bharti Airtel, Mahindra & Mahindra, Tech Mahindra, HCL Tech, and Wipro.

The NSE Nifty 50 opens marginally higher by 12.75 points or 0.05% at 23,881.55, while the BSE Sensex gains 84.42 points or 0.11% to 78,758.67 in the opening trade.

The NSE added Indian Cement, GNFC, Indus Tower, Punjab National Bank, and Sail in F&O on June 27, 2024.

Commenting on the pre-market outlook Prashanth Tapse, Senior VP (Research), Mehta Equities said that the unstoppable rally at Dalal Street has lifted Nifty and Sensex to new record highs at 23,889.90 and 78,759.40, respectively, with bulls revising their targets higher. The Nifty’s crucial support stands at 23,557.

Tapse also added Anticipate high volatility due to the June derivative contracts expire on June 27th, alongside key economic catalysts such as the US GDP figures for Q1, the May US PCE Price Index, and speeches from Fed’s Barkin and Bowman.

Talking on the key levels to watch Tapse adds the preferred trades are to buy Nifty between 22,700-22,750 with a stop at 23,351, targeting 24,050-24,550, and Bank Nifty between 52,300-52,400 with a stop at 51,061, targeting 53,300-53,900. Bullish stocks include Reliance Industries, Britannia, and RBL Bank, with RBL Bank being a top buy at CMP 258, aiming for targets of 371/385.

Foreign institutional investors (FII) offloaded shares worth Rs 3535.43 crore, while domestic institutional investors (DII) mopped shares worth Rs 5103.67 crore on June 27, 2024, according to the provisional data available on the NSE.

Shares in the Asia-Pacific region are trading in negative territory on Thursday morning. The Asia Dow is up 0.23%, while Japan’s Nikkei 225 is down 1.07%. Hong Kong’s Hang Seng index has declined by 1.56%, and China’s benchmark Shanghai Composite index is trading 0.70% lower.

On Thursday morning, WTI crude prices are trading at $80.89, up 0.08%, while Brent crude prices are trading at $85.23, up 0.26%.

The U.S. Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded up 0.26% to 106.05.