Sensex opens 189 points higher; Nifty above 15,700; metals stocks shine

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After falling for two consecutive sessions benchmark equity indices opened in the green on Thursday tracking firm Asian peers and steady decline in Covid cases. In opening trade, Sensex advanced 189 points or 0.36% to 52,130, while Nifty 50 rose 71 points or 0.46% to 15,706.

Of 30 Sensex constituents, 26 were in the green. Bajaj Finance was the top gainer trading up 1.69%, PowerGrid (up 1.28%), ITC (up 0.85%), NTPC (up 0.80%) and Dr Reddy’s (up 0.79%) were among the top gainers. On the downside, Bajaj Auto, Maruti, Asian Paints, Nestle India lost anywhere between 0.10-0.60%.

On NSE, Nifty Metal, up 1.5%, led the sectoral pack followed by Nifty Realty, up 1.37%, and Nifty Pharma gaining 1.05%. Nifty IT rose 0.56%, Nifty Bank added 0.23%, while Nifty FMCG and Nifty Auto rose marginally by 0.05% & 0.04% respectively.

Economy

The economic impact of the second wave COVID-19 is likely to be restricted to the first quarter of 2022, the Department of Economic Affairs said in its monthly report.

As per the DEA, rapid vaccination of India’s population and the frontloading of the fiscal measures are the key to invigorating investment and consumption

Earnings today

Century Plyboards, Mazagon Dock Shipbuilders, eClerx, Tide Water Oil, NHPC, Parle Industries, SAIL, GP Petroleums and Dhoot Industrial Finance are among the companies that will declare their quarterly earnings today.

Stocks in spotlight

Reliance Industries (RIL) said that the Fluidized Catalytic Cracker Unit (FCCU) in SEZ refinery at Jamnagar had to be taken for an emergency shutdown on 6th June 2021. All other units at the Jamnagar Refining complex are operating normally. Consequently, some product shipments may get delayed and the company is working to minimize the impact on our customers.

Adani Enterprises will be in focus as reports indicated that the company is preparing to raise nearly $1 billion in 2021 through an initial public offering (IPO) by Adani Wilmar.

Bata India reported a net profit of Rs 29.5 crore, while revenue came in at Rs 589.9 crore.

Indraprastha Medical’s net profit jumped to Rs 15 crore from Rs 6.4 crore, YoY.

Wipro’s subsidiary Wipro IT Services LLC has approved the proposal for the issuance of US dollar-denominated notes in an aggregate principal amount of up to $750 million.

GAIL expects marketing biz to do well this year considering the prices are higher, crude to remain above $60/bbl.

Dhanuka Agri promoter entity sold 23.3 Lakh shares (4.9%) at Rs 853/sh, Promoter entity raised Rs 200 cr from Govt of Singapore.

Affle has approved a 100 per cent acquisition of Jampp, a leading programmatic mobile marketing company, for $41.3 million.

Hinduja Global subsidiary of Hinduja Global Solutions UK announced plans to create 565 new jobs in Northern Ireland.

LT Foods has incorporated a wholly-owned subsidiary LT Foundation.

MMTC’s board has approved the debt restructuring scheme which envisages settlement of dues out of the disinvestment proceeds of the Neelachal Ispat Nigam Ltd.

Reliance Power’s board will consider a proposal to raise long term resources at its meeting scheduled for June 13.

Tata Motors plans to offer non-convertible debentures aggregating Rs 500 crore.

PTC India Financial reported a loss of Rs 53.66 crore in Q4FY21 against a profit of Rs 7 crore.

Coral India Finance promoter Navin Bachubhai Doshi proposed to sell up to 18,67,170 equity shares of the company at a floor price of Rs 35.

TCI Express announced that its new sorting centre at Pune has become operational after receiving relevant regulatory approvals.

Tube Investments of India at its meeting on 17th June 2021 will also be considering authorizing borrowing through various means including by way of issue of non-convertible debentures on a private placement basis, during FY 2021-22, in one or more tranches.

Accelya Solutions India said that Accelya Group Bidco, promoter of the company, proposed to sell up to 21,81,773 equity shares on June 10, 2021, and on June 11, 2021. The floor price for the offer is Rs 910.

Global market

Overseas, Asian stocks are trading higher on Thursday, as investors looked ahead to an upcoming release of U.S. inflation data for May.

U.S.-China tensions are in focus, with Joe Biden revoking Trump-era bans on TikTok and WeChat. The president ordered a review of software applications from foreign adversaries and action against those that pose a security risk.

Wall Street stocks ended lower on Wednesday, reversing earlier gains as investors awaited inflation data for clues as to when the U.S. Federal Reserve might tighten its dovish monetary policy.

Focus is locked on Thursday’s release of U.S. consumer price data and a European Central Bank meeting for further clues about how soon policymakers may begin to withdraw support for Europe’s economy rolled out following the Covid-19 crisis.