View on market: Stay Cautious, be with quality business:

Asian stocks made a steady start Wednesday after U.S. equities inched lower as the tussle between economic optimism and inflation concern continues to play out in markets. Japanese stocks fluctuated while Australia and South Korea posted modest gains. U.S. equity contracts were flat after the S&P 500 and Nasdaq 100 closed with small losses. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, was little changed at 15,610 as of 7:57 a.m. Oil rose to a more than two-year peak, with the OPEC+ alliance forecasting a tightening global crude market and a nuclear deal with Iran still up in the air.

Meanwhile, Monetary Policy Committee starts meeting today and the decision to be announced on June 4.

Key Data/ Action, Result, and Board meeting to watch

Major economic Data:

  • INR: Nikkei Services PMI (May) on 3rd June, 2021
  • INR: RBI Interest Rate Decision on 4th June, 2021
  • USD: Initial Jobless Claims on 3rd June, 2021
  • USD: ISM Non-Manufacturing PMI (May) on 3rd June, 2021

Earnings to Watch:

Earnings: Motherson Sumi Systems, PVR, Muthoot Finance, MTAR Technologies, Panacea Biotec, Ratnamani Metals & Tubes

International Markets:

U.S & Europe

Particulars    1st June. Chg Chg(%)
Nasdaq 13,736.48 -12.26 -0.09
Dow 34573.31 45.86 0.13
FTSE** 7,080.46 57.85 0.82
CAC** 6,489.40 42.23 0.66
DAX 15,567.36 146.23 0.95
Dow Fut.* 34,577.00 270 0.08

Asian markets:

Particulars    2nd June. Chg Chg(%)
SGX Nifty 15,610.00 -21 -0.13
Nikkei 28,938.93 124.59 0.43
Straits Times 3,172.48 -14.75 -0.46
Hang Seng 29,385.67 -82.33 -0.28
Shanghai 3,604.22 -20.49 -0.57

ADR Watch:

Particulars       1st June. Chg Chg(%)
Dr Reddy 72.78 1.41 1.98
HDFC Bank 76.03 -0.5 -0.65
ICICI Bank 17.95 -0.06 -0.33
Infosys 19.27 -0.07 -0.36
Tata Motor 21.79 0.06 0.28
Wipro 8.01 0.08 1.01

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR         72.90 0.39
Brent 70.59 0.48
Gold 1901.15 -0.20
Silver 27.925 -0.63

FIIs & DII

Particulars       1st June. 31st May.
FIIs -449.86 2412.39
DIIs  230.49 179.78

Results:

ITC Q4FY21 (Consolidated, QoQ) Revenue up 9.1% at Rs 15,404.37 crore Vs Rs 14,124.48 crore Net profit up 6.5% at Rs 3,755.47 crore Vs Rs 3,526.55 crore Ebitda up 1.8% at Rs 4,871.12 crore from Rs 4784.02 crore Ebitda margin at 31.62% Vs 33.87% Recommended final dividend of Rs 5.75 per share. Record date for the same is June 11.

Gujarat Gas Q4FY21 (Consolidated, QoQ) Revenue up 21% at Rs 3,489.31 crore Vs Rs 2,885.70 crore Net profit down 11% at Rs 350.86 crore Vs Rs 392.30 crore Ebitda down 10% at Rs 554.25 crore Vs Rs 614.81 crore Ebitda margin at 15.9% Vs 21.3% Recommended dividend of Rs 2 per share

Brokerage Radar:

CLSA ON ITC: Maintain BUY at the Price of Rs.216 for the Target Price of Rs.265. Cut earnings Estimate of its cigarette business by 3%.Inflationary Setting is likely to influence its near-term margin.Remain confident in the improving margin Trajectory for other FMCG Biz.

CLSA ON GUJARAT GAS: Maintain outperform at the price of Rs.540 for the Target Price of Rs.570. Strong Quarter but limited margin & Valuation tailwinds Ahead. Raise  FY22-23 EPS Estimates by 5% -12%.Company new Trades at 17% Discount to IGL’s P/E

News Update:

NMDC: Total production in May up 21.83% to 2.79 MT from 2.29 MT year-on-year. Total sales up 29.41% to 3.30 MT from 2.55 MT YoY.

Gujarat Gas: Board of Directors have approved the acquisition of City Gas Distribution business for Amritsar and Bhatinda geographical areas from Gujarat State Petronet for Rs 163.31 crore. The acquisition is expected to be completed within 45-60 days.

Reliance Industries: To hold annual shareholders’ meeting on June 24 via video conference; sets June 14 record date for dividend

Patel Engineering: The company and its consortium lenders have completed the execution of the necessary agreements, deeds, security creation, undertakings, and other relevant documents for the implementation of the One Time Resolution Plan on May 31. The company had availed Covid relief from the consortium of lenders in the form of OTR.

Fineotex Chemical: Approved raising up to Rs 200 crore by way of issuance of securities, through private placement, preferential issue, qualified institutions placement, follow-on public offering or a combination thereof

Indiabulls Housing Finance: Conversion price of 2026 USD Notes changed to Rs 230.14 per share.

May Auto Sales:

Hero MotoCorp: Overall sales down 51% at 1,83,044 lakh units Vs 3,72,285 units. Motorcycle sales down 47.33% at 1,78,706 lakh units Vs 3,39,329 lakh units. Exports down 20.85% at 23,483 units Vs 29,671 units.

Eicher Motors: Total Royal Enfield sales down 48.78% at 27,294 units Vs 53,298 units. Exports up 60% at units 7,221 Vs 4,509 units.

Ashok Leyland: Total vehicle sales down 61.64% at 3,199 units Vs 8,340 units. Domestic sales down 65.60% at 2,738 units Vs 7,961 units.

Source: Moneycontrol, Livemint,, Bloomberg, Investing, Business Standard

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