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Closing Bell: Market ends flat amid volatility; oil & gas, metal, auto outshine – Moneycontrol

June 28, 2022 / 04:29 PM IST

Deepak Jasani, Head of Retail Research, HDFC Securities:

Nifty recovered from morning losses on June 28 following the positive global cues. At close, Nifty was up 0.11% or 18.2 at 15,850.2. 

Among sectors, Oil & Gas, Metals and Auto indices rose the most while Consumer Durables and Telecom indices lost the most. 

Asian stocks opened weak but inched up through the day. Global stocks rose on Tuesday inspite of higher crude prices as China softened its strict Covid protocols, easing investor concerns about global growth.

Nifty ended in positive after a day of struggle. The upgap on daily charts made on June 28 was filled intraday and hence this bullishness was offset to an extent. A breach of 15,927 is necessary to build on further gains. On falls 15,619 can offer support.

June 28, 2022 / 04:18 PM IST

Rupak De, Senior Technical Analyst at LKP Securities:

Nifty remained volatile during the day before closing with a green candle formation. On the lower end, 15650-15700 has remained support for the near term. 

The momentum indicator RSI is in bullish crossover and rising. The trend looks positive as long as it sustains above 15650. On the higher end, 15900-16000 may continue to act as resistance.

June 28, 2022 / 03:57 PM IST

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Markets witnessed a roller coaster ride in intra-day trades, but selective buying in IT, metal, auto and oil & gas stocks helped key benchmark indices recover at fag end to log modest gains. Early upturn in European markets and recovery in other Asian gauges also provided an impetus to local markets. 

Technically, after an early morning sell off, the Nifty took support near 15700 and bounced back sharply towards later stages. It has also formed a small bullish candle on daily charts. 

We are of the view that as long as the index is trading above 15750 the uptrend formation is intact. Above which the index could move up to 15950-16000 levels. On the flip side, a fresh round of selling is possible if the index succeeds to trade below 15750. Below which, it could retest the level of 15700-15650.

June 28, 2022 / 03:55 PM IST

Vinod Nair, Head of Research at Geojit Financial Services:

After a gap down opening, domestic indices were lifted by positive global peers while oil prices rose over renewed supply concerns. 

The weakened rupee and rising bond yield limited domestic investors’ risk appetite. Gains in commodity-linked stocks and optimism over easing Covid restrictions in China aided the global up-move.

June 28, 2022 / 03:44 PM IST

Vinod Nair, Head of Research at Geojit Financial Services:

Upstream companies are currently benefited by higher spot prices of oil, leading to strong earnings, while refiners are benefited from higher GRMs. This trend is expected to continue in FY23, as OPEC will continue to maintain its current production levels. 

Going ahead, if oil prices remain elevated, the oil marketing companies (OMCs) will be impacted by higher under-recoveries unless we have a calibrated hike in retail fuel prices. 

We remain positive on upstream companies in the short term but over the medium to long term, we expect oil prices to correct as the supply constraints and geopolitical tensions relieve. Given higher volatility in earnings, overall, we have a neutral view on the sector.

June 28, 2022 / 03:41 PM IST

S Ranganathan, Head of Research at LKP securities:

While the confluence of factors like War, Oil and Currency strength of India tempted FII’s to book profits on the back of premium valuations relative to its peers, the narrative could likely change if any of the above factors were to alter going forward. 

As the rupee hit fresh lows today, we did see selective buying interest in exporting companies as smart investors begin bargain hunting by putting global macro worries behind. 

In a rather range-bound trading session today as deliberations of the GST council gets underway, Autos displayed strength yet again on the back of new launches ahead of their monthly numbers.

June 28, 2022 / 03:36 PM IST

Rupee Close:

Indian rupee ended at fresh record closing low at 78.78 on Tuesday against Monday’s close of 78.34.

June 28, 2022 / 03:34 PM IST

Market Close: Benchmark indices ended on flat note in the volatile session on June 28.

At close, the Sensex was up 16.17 points or 0.03% at 53,177.45, and the Nifty was up 18.20 points or 0.11% at 15,850.20. About 1737 shares have advanced, 1460 shares declined, and 139 shares are unchanged.

ONGC, Hindalco Industries, M&M, Coal India and HDFC Life were among the top Nifty gainers. The losers were Titan Company, Asian Paints, Bajaj Finserv, Divis Labs and Adani Ports.

Among sectors, Auto, Metal, and Oil & gas indices rose 1-2 percent, while some selling was seen in the financial names.

BSE midcap and smallcap indices ended flat.

June 28, 2022 / 03:27 PM IST

Vinod Nair, Head of Research at Geojit Financial Services:

The buyback will provide an edge to the performance of the stock price of Bajaj Auto, in the industry, due to enhancement in quantitative & qualitative factors. 

Daily delivery will increase and fundamentally earnings will improve by a minimum 1% to a maximum 2% for FY23. Since it is an open market transaction, the immediate benefits to the stock price will depend on the trend of buyback offer and market condition. But, at CMP, the stock is trading at 18.5x on a 1yr forward., which is in line with the 3yr and 5yr historical average. 

Henceforward, we can presume an improvement in the valuation to above the average during short to medium-term. We are also positive in the long-term due to pick up in domestic economic activities, strong road map for electric scooter and robust financial metrics like strong balance sheet and improvement in future earnings supported by the decrease in raw material prices.

June 28, 2022 / 03:25 PM IST

CLSA View On Voltas:

Brokerage firm CLSA has kept sell rating on Voltas and cut the target price to Rs 930 from Rs 1,000 per share.

FY22 RoCE/RoE fell to 11%/9.6%, its lowest in a decade and FCF generation at Rs 15 per share with conversion (FCF/Profit) at 1x.

It will be a tall task for it to reach its previous peak & maintain its margin.

CLSA see further downside given competitive intensity in high input price environment, reported CNBC-TV18.

Voltas was quoting at Rs 976.35, down Rs 5.90, or 0.60 percent on the BSE.

June 28, 2022 / 03:23 PM IST

Arijit Malakar, Head of Research – Retail, Ashika Group:

The launch of Scorpio N would be a disruptor in the SUV segment that will help M&M in gaining its market share in SUV pace. This new launch would appeal to buyers in the midsize SUV and higher segments. 

Scorpio N is expected to compete with the Hyundai Creta, Kia, Volkswagen Taigun and other SUV brands. M&M for the past few years has been striving to gain its lost market share in the SUV segment by launching XUV700 and Thar. Both the products have helped the company come back in the growth in terms of volume and profitability. 

The company’s previous SUV launches failed to live up the expectation and M&M witnessed its market share in SUV shrunk from 55% in FY12 to 19% in FY22. However, a series of new upgraded launches, easing of semiconductor shortage and expectation of good monsoon in 2022 would lift up the demand for its cars.

June 28, 2022 / 03:22 PM IST

Allied Blenders and Distillers files DRHP for Rs 2000 crore IPO

Mumbai-based Allied Blenders and Distillers, the largest Indian-owned Indian-made foreign liquor (IMFL) company and the third largest IMFL company in India, in terms of annual sales volumes between Fiscal 2014 and Fiscal 2021 has filed its Draft Red Herring Prospectus (DRHP) with the markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).

The issue with a face value of Rs 2 per equity share consists of a fresh issue of equity shares worth up to Rs 1000 crore and an offer-for-sale (OFS) of Rs 1000 crore by Promoter and selling shareholders i.e Bina Kishore Chhabria up to Rs 500 crore, up to Rs 250 crore by Resham Chhabria and Jeetendra Hemdev and up to Rs 250 crore by Neesha Kishore Chhabria. The offer also includes a reservation for subscription by eligible employees.