Mid market commentary June 15

Indian stock markets continued with the recovery they saw in the last hour of previous trading session.  Both Nifty and SENSEX opened nearly 30 and 105 points up respectively, but stayed there resulting into an intraday consolidation. Currently markets are hovering around their opening prices with 0.4-0.5 per cent gains.

Among broader markets Smallcap index continued to outperform the benchmarks gaining 0.8 per cent; while Midcap surged in line with 0.4 per cent gains. Market bias remains positive with 1556 advances and 793 declines.

Aviation stocks rallied on Wednesday after the cabinet gave approval for new aviation policy wherein the 5/20 rule would be replaced by 0/20 rule. The rule states that the airlines will not have to wait for 5 years to fly abroad in case they hold 20 aircrafts. Moreover, falling Crude and Brent ahead of Brexit poll too boosted the stocks to move upwards. Shares of Jet Airways, Spice Jet and Interglobe Aviation surged in the morning trade.

Among other sectors Infra and PSU Banks surged more than 1 per cent. From Infra sector JSW Energy surged 4.3 per cent. Similarly, IDBI and SBI were the top PSU Banks that surged 1.5 and 1.3 per cent, respectively. SBI along with its subsidiaries surged, when the cabinet declared it may approve merger of the 5 associates and Mahila Bank with itself.  All the other sectors are trading in green but with marginal gains.

Top Nifty gainers: Bharti Airtel, Hero MotoCorp, NTPC, Powergrid and L&T are the top Nifty gainers with 2 per cent plus gains each.

Top Nifty losers: Infratel leads the downside move with 3.3 per cent losses. Amongst other losers Axis Bank, Auro Pharma, Coal India and Adani Ports fell but with marginal losses of below 1 per cent.

Asian markets remained volatile ahead of FED policy which is to be released later in the day and BREXIT poll. However, China paced up on the MSCI’s decision of not including domestic Chinese equities in its indices. 

Stocks to watch:

Tata Motors: The JLR brand of Tata Motors is set to open a fully owned overseas plant in Brazil. For the same Tata Motors joins rivals Volkswagen and General Motors in setting up plant to avoid high tariffs and abide by the rules.

Alstom T&D: The shares of Alstom T&D surged after it bagged two contracts of Rs 202 crore from Power Grid for projects of 400/220 kv AIS substation at Rewa, Madhya Pradesh.

Godrej Properties: Godrej Properties remains in the limelight and surges 3 per cent.  Godrej Industries subsidiary Godrej Agrovet board approved monetisation of its 100 acre land in Bengaluru in joint development with Godrej Properties.

Bharti Infratel: The stock tumbled as it turned ex-date for share buyback, which it had announced in April.

Zensar Technologies: Zensar grabbed multimillion deal with John Lewis, U.K.’s largest retailer through its business transformation process with next gen applications management.