Market at 10 AMBenchmark indices were trading near the day’s low with Nifty below 15,800 level.At 10:01 hrs IST, the Sensex is down 1,448.13 points or 2.67% at 52855.31, and the Nifty down 414.10 points or 2.56% at 15787.70. About 508 shares have advanced, 2428 shares declined, and 105 shares are unchanged.
Keystone Realtors files IPO papers
Rustomjee group company Keystone Realtors has filed a draft red herring prospectus with Securities Exchange Board of India to raise around Rs 850 crore via initial public offering.
The IPO comprises a fresh issue of Rs 700 crore and an offer for sale (OFS) of up to Rs 150 crore by its existing shareholders and promoters. Click to Read More
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
The near-term market trend is weak. The May US inflation print at 8.6% against the market expectation of 8.3% is likely to turn the Fed more hawkish with a series of 50 bp rate hikes taking the terminal rate by mid-2023 above 3.5%. Such a scenario would be negative for risky assets like equity, particularly in the context of declining global growth.
The Indian market will stabilize only when the US market stabilises. Therefore, investors may wait and watch till clarity emerges on the market trend.
One silver lining is the 7.1% increase in IIP which indicates that the Indian economy is doing well. Therefore, long-term investors can use the dips in the market to buy high quality economy-facing stocks like capital goods, banking, telecom and export segments.
More than 100 stocks touched their 52-week low including Ultratech Cement, Gujarat Gas, NMDC, Coforge, Rallis India, Subex. Click here to get a complete list of stocks that have touched 52-week lows:
Yesha Shah, Head of Equity Research, Samco Securities:
The benchmark appears to be moving towards the support zone between 15,900 and 16,100. Despite the fact that this week’s trading patterns suggest additional downside, the overall bearish momentum has moderated as the Nifty trades above the falling resistance line. As long as the Nifty does not fall below 15,900, there is a significant chance that it can test 16,800 levels.
We recommend traders keep a neutral view for the coming week and avoid aggressive trades on either side. Globally, Fed’s interest rate decision as well as the volatility in crude price will keep the market anxious. Back home, the CPI and WPI inflation print will be the main headliner next week. Markets participants will keenly analyse whether the import duty restrictions and rate hikes have had a positive impact on the inflation numbers.
Statistics on India’s trade balance will also be closely monitored as it clocked a record high in May. The movement of the rupee against the dollar will also be watched. Amid increasing macro uncertainties, investors are advised to exercise extreme caution till market decisively find its direction.
Gold Prices Today: Yellow metal may remain choppy amid high US yields, strong dollar
“We expect gold prices to trade sideways to up for the day. MCX Gold August support lies at Rs 51100 and resistance at Rs 51900 per 10 grams,” said Tapan Patel, Senior Analyst (Commodities), HDFC…
Morgan Stanley on Sun Pharma:Research firm Morgan Stanley has kept overweight rating on Sun Pharmaceutical Industries with a target at Rs 1,032 per share.Data shows a sharp increase in market share for gPentasa. The volumes were up 121 percent week-on-week, versus Innovator’s down 31 percent.Research firm estimate USD 50-70 million sales upside for company with high margin on a 12-month basis, reported CNBC-TV18.
Nifty PSU Bank index fell 3 percent dragged by the Bank of Baroda, Canara Bank, SBI:
BSE Realty Index shed 3 percent dragged by the Godrej Properties, Sobha, Oberoi Realty
Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services:
Investors would look forward to upcoming Fed meeting scheduled on June 14 and 15. On the domestic side, a depreciating rupee, high crude oil prices and consistent FII selling remain key negatives.
The market is stuck in a broader range for the last one month, which is expected to continue until any clear direction emerges on either side. While declines are being bought into, support is missing at higher levels.
We expect limited stock and sector-specific action. Energy, auto, auto ancillary, select banks, retail, QSR and defence sectors are likely to be in focus.
Gainers and Losers on the BSE Sensex in the early trade:
Market Opens: Indian indices opened gap-down on June 13 with Nifty below 15,900 dragged by weak global cues.
At 09:16 IST, the Sensex was down 1,311.76 points or 2.42% at 52991.68, and the Nifty was down 373.20 points or 2.30% at 15828.60. About 491 shares have advanced, 1670 shares declined, and 117 shares are unchanged.
Cipla, Sun Pharma, SBI Life Insurance and Power Grid Corporation were among major gainers on the Nifty, while losers were Kotak Mahindra Bank, HDFC, L&T, Hindalco Industries and Infosys.