Mid market commentary June 10

Indian stock markets started off on a negative note, consolidated in the first hour of trading, and later saw an abrupt up move. The benchmark indices surged nearly 0.75 per cent where Nifty hit 8265 mark while SENSEX hit just below 27000 levels. Markets saw a short covering in the first half of the session after two consecutive falls and continued with the fall.

Market breadth still remains positive with 1205 advances and 1178 declines. Smallcap and Midcap remain in the limelight as they maintain outperformance.

On the sectoral front, Metal was trading up 1 per cent led by Vedanta, Welcorp and Hindalco that increased by 3 per cent. Bank Nifty followed with half per cent up move where Yes Bank surged 2.2 per cent. However, sectors have retreated.  Barring Pharma and Media all others saw a turn around. PSU Banks led the move with 1 per cent losses.
Yes Bank surged on buying minority 8 percent stake in Receivables Exchange of India (RXIL).

Top Nifty gainers: Hindalco and Yes Bank have soared 2 per cent. BHEL follows with 1.9 per cent gains. Ambuja Cements and Lupin are among the other top gainers that have surged with 1 per cent gains.

Top Nifty losers: Tata group stocks TATAMTRDVR, Tata Steel and Tata Motors are the top losers with 1.7, 1 and 0.9 per cent losses, respectively, amid profit booking. Auro Pharma and Bosch remain the next top losers with 0.8 and 0.5 per cent, respectively, for now.

Asian equity markets have retreated, offset by the boom in safe havens like bond markets ahead of Brexit referendum. Nikkei and Hang Seng slipped marginally. European markets also opened on a negative note.

Nifty gave up early gains weighed by weak global markets. On the downside we hold 8200 as the major support followed by 8155-8135 levels. For any upside, Nifty needs to break out of 8250-8265 in the first place. Later we maintain 8340 as our next target.

We have IIP data to be released in the later part of the day. Markets may react to it at the beginning of next week.

Stocks to watch:

Solar Industries India: Solar Industries India stock gained after company announced winning an order worth Rs 443.44 crore from Singareni Collieries Company (SCCL) for the supply of 163911.20 MT explosives.

Bharat Petroleum: Reserve Bank of India has allowed foreign investors to increase stake in BPCL up to 49 per cent. The company has passed resolutions at board level and special resolution at shareholders’ level.

Lanco Infratech: According to media reports four major power companies including Tata Power and JSW Energy are in talks to buy power assets of Lanco.

Bajaj Hindustan: Almost all sugar stocks including Bajaj Hindustan surged when the Food Minister Ram Vilas Paswan announced 25 per cent taxes on sugar exports.

Intellect Design Arena: Intellect Design stock to remain in the limelight as Intellect SEEC launches an app: Intellect Lead Closer, for advisors.