Stock Market Live Updates: Sensex, Nifty trade higher amid volatility ahead of expiry; pharma, metals shine

Market Watch: Jay Thakkar, Marwadi Shares & Finance

– Buy Nalco with a stop loss at Rs 59 and target of Rs 69.

– Buy Glenmark Pharma with a stop loss at Rs 560 and target of Rs 600.

Commodity check: Copper, aluminium, nickel on the rise; here’s why

Ferrous metal prices continue to be in the new as they are on the ascent. However, non-ferrous metals prices also are also trading higher. Copper and aluminium prices in India are trading at all-time highs. LME Nickel is trading at a two-month high and on the global markets, nickel prices are trading at three-month highs. The strength is a result of the weakness in the US dollar and this is especially after the Fed statement where Powell said that economic recovery requires further support. The metals are taking positive cues from there. Watch here.

Yash Gupta Equity Research Associate, Angel Broking on PowerGrid InvIT IPO

Retail investors should not look at this IPO as just a regular company IPO because this IPO will give you a consistent yield of around 8 percent that is why it is called InvIT. In an InvIT, trust manages the assets of the company and then whatever they earn while managing the assets will be distributed amongst the unitholders. As in this InvIT assets will be those 5 power transmission projects, so the company will manage these assets and earn revenue and then distribute those revenues among the unitholders. We suggest those retail investors looking for the safety of their investment and who want to earn a regular income can apply for this IPO by keeping the expected yield between 7-8 percent p.a.

Steel prices likely to rise more, says CLSA

China has removed a rebate on value-added tax (VAT) charged on exports of several steel products, making exports less attractive. We believe part of the rebate cut is already priced in, with China export prices up 21% MoM (domestic price up 13%). Robust Chinese demand and higher raw material prices are likely to keep near-term steel prices elevated. Indian steel prices have more room to increase with spot prices at a 15/8% discount to import/export parity. Tata Steel remains our preferred pick.

Market Watch: Jyotivardhan Jaipuria, Founder & MD, Valentis Advisors

We still kept a lot of pharma in the portfolio as a hedge against the second wave coming. We continue to play lockdown play, but ultimately we think it is the opening up plays that will give us a better return over the next 2-3 years. On the correction, we are buying financials, cement and we will also nibble on to some capital good plays. These are the stocks that probably over the next 2-3 years will give you a bigger return than a lot of these good-quality companies which have done well over the past decade.

Yash Gupta Equity Research Associate, Angel Broking

Nifty opens in green and then makes a monthly high of 15,042 and then corrects heavily on profit booking. Nifty corrected more than 200 points from the day’s high. We don’t suggest investors buy on dips as Nifty has rallied from 14,150 within the last 5 trading sessions. We suggest 14,700 will be a good opportunity to buy on dips and on up side Nifty will face resistance at 15,200 levels.

Market could go through consolidation phase; banks and autos top buys: UBS’ Sunil Tirumalai

Speaking in an interview with CNBC-TV18, he said, “It is unlikely that a rally has passed as this keeps running for a much longer time, there will be a bit of consolidation. One can still make bigger gains by focusing on the right sectors but at the index level the rally has been sharp recently; there is upside but it is going to be a bit of a consolidation further.” Talking about sectors, Tirumalai said, “We have been liking bank and private banks in particular for a while in spite of the rally that we have seen over the last week, they are still at a discount to the usual relative valuations that they enjoy.” Read here.

Oil prices extend gains as bullish demand outlook outweighs India concerns

Oil prices extended gains on Thursday after rising 1 percent the previous session, as bullish forecasts on recovering demand this summer outweighed concerns about the impact of rising COVID-19 cases in India, Japan and Brazil.

Choice Broking on PowerGrid InvIT IPO

With initial portfolio assets characterized with perpetual ownership, higher visibility on cash flows, minimal counterparty risk and lower operating risk, we feel that the trust is well placed to get benefited from the structural growth in the power transmission space. PowerGrid InvIT asset SPVs normally pays 6-7% as interest charge on the borrowed funds. So with no disclosure of the yield income from the trust, it will be fair to assume that PowerGrid InvIT will have a pre-tax yield of over 7%, which is better than the prevailing fixed deposit rates offered by the banks. Thus considering the above observations, we assign a “Subscribe for Long Term” rating for the issue.

CCI approves acquisition of BigBasket by Tata Digital

The Competition Commission of India (CCI) has approved the acquisition by Tata Digital of up to 64.3 percent of the total share capital of Supermarket Grocery Supplies Private Ltd (BigBasket) & SGS’ sole control over Innovative Retail Concepts. It is stated that subsequently, through a separate transaction, SGS may acquire sole control over Innovative Retail Concepts Private Limited (IRC). The proposed combination will result in the acquisition by TDL of the majority stake of and control over SGS, it added. Read here

Steel Strips Wheels | The company has received export orders of over 1,70,000 wheels for US & EU caravan trailer market, US Mobile Home and US Truck trailer market. SSWL will complete their execution by early July 21 from its Chennai & Dappar plants. Orders of similar capacity are anticipated in coming months from similar customer base as businesses continue to recover rapidly, the company said.

Market Watch: Pritesh Mehta, Yes Securities

– Buy Divis Laboratories above Rs 3,900 with stop loss of Rs 3,780 for target of Rs 4,300

– Buy Eicher Motors above Rs 2,500 with stop loss of Rs 2,350 for target of Rs 2,900

Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking

Post a slow and gradual recovery from the recent lows, the index has finally breached its crucial hurdle of 14,750 which was the trendline resistance of last two months corrective phase. This breakout eventually indicates a resumption of the broader uptrend as the upmove has also been supported by the banking space and the midcap universe.

Thus, some volatility cannot be ruled out on the expiry day. While the broader picture looks good, day traders are advised to avoid aggressive positions and positional traders should look for buying opportunities on declines on lower time frame chart. The immediate support is now placed at 14,700-14,685 and resistance is seen around 14,970-15,000.

Tata Motors | Martin Uhlarik is appointed new Global Design Head of Tata Motors.

Rupee Update | The Indian rupee opened higher by 14 paise at 74.22 per dollar on Thursday against previous close of 74.36, amid buying in the domestic equity market.

KPIT Tech: Will see higher increments, promotions, increase in hiring in FY22

IT Tech has posted good fourth-quarter results, which came in above street estimates. The IT company has now seen two quarters of strong revenue growth and three-quarters of margin expansion. Speaking with CNBC-TV18, Kishor Patil, Co-founder, Managing Director, and CEO at KPIT Technologies said, “Year-on-year (YoY) our EBITDA expansion if you look at in absolute number it was Rs 75 crore last Q4 and now it is Rs 93 crore so it is a substantial almost 20 percent increase in the EBITDA number in absolute term over last year Q4.” On growth, he said, “Going forward for the next year we are very comfortable with the pipeline with have, comfortable with the business outlook. At this point in time, we are just saying double-digit growth, we have always delivered much better growth in the past. We are confident about the business environment and we will guide we go forward.” Read more.

India at early stage of multi-year economic upcycle, says Geosphere’s Arvind Sanger

India is at an early stage of a multi-year economic upcycle, said Arvind Sanger, managing partner of Geosphere Capital Management, on Thursday. “We are in the early stages of a multi-year economic cycle that has legs and the banking sector looks like it has a lot of room in terms of loan and earnings growth to come. Therefore, while the stocks are not cheap, we do find some pockets of value in both the banking and NBFC space and that is worth looking at,” he told CNBC-TV18. On COVID2.0, he said, “The terrible second wave that has hit India hard will start to peak and roll off in the next few weeks; a roll-off may take a while. So the impact, economically, and not human tragedy, which is sad, but from an economic standpoint which is what the market is focused on, June quarter is going to be hard hit but beyond that things should move back towards some level of normalisation.” Read here.

Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments

The markets are performing just as expected. Beyond the level of 14,700, it is now headed to 15,000-15,100 which should be the first pit stop. If we can sustain there, the next level should be the previous high of 15,300-15,350. 14,300 is now strong support for the Nifty and any downward correction can be utilized to enter the index for higher targets.

India’s gold demand could falter in June quarter on COVID-19 lockdowns – WGC

India’s gold consumption is expected to falter in the June quarter as various states are imposing lockdowns to arrest rising COVID-19 cases, dampening the celebration of weddings and key festivals, the World Gold Council (WGC) said on Thursday. Appetite for gold soared in the first quarter on pent-up demand after weddings were delayed in 2020 due to the COVID-19 pandemic, a Reuters report said. But an escalating crisis in India has prompted most state governments to impose curbs on the movement of people and asked non-essential business to close, dampening demand in the world’s second-biggest bullion consumer. Lower purchases could weigh on gold prices, which have recovered this year and risen 6% so far in 2021. But falling demand for gold imports could help narrow India’s trade deficit and support the ailing rupee.

Torrent Pharmaceuticals | The company has received a tentative US FDA nod for Leprosy drug Dapson.