Closing bell:
The benchmark indices started the session on a high note and held on to the gains over the first half. The indices were in the positive territory throughout.
The broader benchmark indice NSE Nifty was at 10,311.20, up 66.80 points or 0.65 per cent. The BSE Sensex closed at 34,911.32, up 179.59 points or 0.52 per cent.
In the sectoral indices, Bank, Pharma and Metal did well, meanwhile IT ended in red.
Bajaj Auto, Bajaj Finance and Coal India were the top gainers. Whereas, Wipro, GAIL, and ONGC were the top laggards.
Company results:
DBS Bank India reported an over six-fold increase in its net profit to ₹111 crore for FY20, against ₹14.5 crore a year ago.
Net revenues grew 24 per cent to ₹1,444 crore (₹1,165 crore).
“In the past year, we have strengthened customer relationships and expanded our footprint in the country through a unique phygital strategy. Despite the prevailing headwinds, we are confident that we will continue to capitalise on growth opportunities,” said Surojit Shome, Managing Director and CEO, DBS Bank India.
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Glenmark Pharma reaches new high. The stock zoomed over 30 per cent.
Futures and Options
The long-term outlook for LIC Housing Finance appears negative though in the short- and medium-term the stock may move in a narrow range with a positive bias. The stock finds an immediate resistance at ₹298 and support at ₹259.
On the conclusive close above ₹298, LIC Housing Finance can go up to ₹320. But a close below the immediate support could trigger a sharp fall.
Company update:
L&T Hydrocarbon Engineering (LTHE), a wholly-owned subsidiary of Larsen & Toubro (L&T), has signed an MoU with NYSE-listed KBR to build modular process plants for refinery and petrochemical projects.
KBR and LTHE will collaborate to develop business opportunities and LTHE will exclusively bid for KBR’s solid acid alkylation technology, solvent de-asphalting technology and catalytic olefins technology for global projects with an emphasis on India, South East Asia, Middle East and Africa, the company said.
Company news:
Private sector lender ICICI Bank has sold 1.5 per cent stake in its life insurance arm, ICICI Prudential Life Insurance, for ₹840 crore.
“The bank has today divested 21,500,000 equity shares of face value of ₹10 each of ICICI Prudential Life Insurance Company Ltd, representing 1.50 per cent of its equity share capital at March 31, 2020, on the stock exchange for an approximate total consideration of ₹8.40 billion,” it said in a regulatory filing.
BSE Sensex update:
Company update: Bio-technology major Biocon said it has inked a pact with market expansion services provider DKSH for distribution of seven generic products in Singapore and Thailand.
Biocon Pharma Ltd, a subsidiary of the bio-tech firm, and DKSH Business Unit Healthcare, have inked an agreement in this regard, Biocon Ltd said in a statement.
Reliance Industries (RIL) became the first Indian firm to hit a market valuation of $150 billion helped by a continuous rally in its share price.
In morning trade, the company’s market valuation jumped Rs 28,248.97 crore to Rs 11,43,667 crore ($150 billion) on the Bombay Stock Exchange (BSE).
The heavyweight stock surged 2.53 per cent to a record high of Rs 1,804.10 on the BSE.
Daily Rupee call:
The rupee (INR), after ending last week by half a per cent lower, has today opened on a flat note against the dollar (USD). It opened at 76.17 versus Friday’s close of 76.19. As it closed last week below the support of 76, the local currency might witness a downward pressure.
Watch out for:
Broker's call:
Ramco Industries (Accumulate)
CMP: ₹174.85
Target: ₹230
Part of the Chennai based Ramco Group, Ramco Industries is one of the very few holding companies in the listed space having a stable business with a long growth runway in roofing.
With 10 manufacturing facilities strategically located, Ramco Industries is well positioned to play the rural growth story in India since demand for its products largely remains unaffected even during the Pandemic. Its brands Ramco Build, Hilux, Hicem, Poweroof & Greencor have a strong brand equity among customers.
Virtually debt-free, Ramco Industries present MCAP not even takes into account the value of its 21 per cent equity stake in Ramco Cement even after considering holding company discount. Trading at 0.4x book value the single-digit PE multiples in our view do not really capture the inherent strength and resilience displayed by its business model during the Pandemic. Accumulate Ramco Industries for a potential upside of 50 per cent from present levels.
Index Outlook:
Amid volatility, the bellwether indices — the Sensex and the Nifty — gained more than 2.5 per cent last week. Investors should tread with caution in the June expiry week. The rupee’s movement against the dollar will remain in focus along with the global crude oil price.
Update: Glenmark Pharma jumps 15 per cent
Trading pick of the week: Buy Essel Propack
Investors with a medium-term perspective can buy the stock of Essel Propack at current levels.
The stock had found long-term support in the band between ₹80 and ₹85 in August 2019 and changed direction. Since then, it has been in a long-term uptrend, forming higher peaks and higher troughs.
There has been an increase in daily volume over the past three trading sessions. The medium-term outlook is bullish for Essel Propack.
It can continue to trend upwards and reach the price targets of ₹210 and ₹220 with a minor pause at ₹210.
Traders with a medium-term view can buy with a stop-loss at ₹178.
NSE | Top gainers and losers:
Global market update:
United States (US) stock futures erased losses and Asian stocks held flat on Monday, trying to shake off worries that rising coronavirus cases in the US could scupper a quick economic rebound from the massive downturn triggered by the pandemic.
US S&P 500 futures rose 0.4 per cent, having erased early losses of 1.05 per cent while Japan's Nikkei also eked out gains of 0.1 per cent, similarly recovering from early losses.
Opening bell:
Indices opened this week on a positive note. The BSE Sensex opened at 34,970.87, 239.14 points or 0.69 per cent higher. The NSE Nifty benchmark indice opened at 10,303.45, up 59.05 points or 0.58 oer cent. Bajaj Finserv and Bajaj Finance opened in green becoming the top gainers. IndusInd bank and M&M are the top laggards.
The global markets today also opened on a high note.
9.10 am
Weekly trading guide:
RIL (₹1,759.4)
RIL in a strong uptrend
The stock of Reliance Industries is displaying a strong uptrend as it bounced from the critical support of ₹1,500, where the 21-day moving average coincides, and rallied to form a fresh lifetime high. It marked a new high of ₹1,788.8 on Friday before ending the session at ₹1,759.4, posting a gain of a little over 10 per cent for the week.
The stock seems to have resumed its strong run upwards after witnessing a sluggish period in the preceding week. The daily relative strength index, moving in tandem with the stock price, has been rising and is well above the midpoint level of 50.
The moving average convergence divergence indicator in the daily chart, which was beginning to show signs of weakness, is now showing a fresh uptick, substantiating the bull trend. Notably, it also lies in the positive region.
Considering the aforementioned factors, traders can be bullish and initiate fresh long positions on declines with a stop-loss at ₹1,630. On the upside, the stock is likely to appreciate to ₹1,850, above which it might rally to ₹1,900.