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

Asian stocks were steady early Tuesday as investors await more clues on the outlook for inflation and central bank stimulus amid the recovery from the pandemic.Stocks edged up in Japan and Australia but fell in South Korea. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, rose 0.22% to 15,814 as of 7:55 a.m. U.S. futures rose and Nasdaq 100 contracts outperformed, weathering an international plan to ensure big firms such as Amazon.com Inc. pay a minimum level of tax.Ten-year U.S. Treasury yields were stable. Traders are awaiting the U.S. inflation report to gauge price pressures amid expectations the Federal Reserve in the weeks ahead will begin talking about tapering asset purchases.

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

Major economic Data:

  • INR: Industrial Production YoY APR on 11th June, 2021
  • INR: Foreign Exchange Reserves on 11th June, 2021
  • USD: Trade Balance (Apr) on 8th June, 2021
  • USD: JOLTs Job Openings (Apr) on 8th June, 2021

Earnings to Watch:

Earnings: Bajaj Hindusthan, Suven Pharmaceuticals, Max Financial Services, Petronet LNG, Prestige Estates Projects, Engineers India, Galaxy Surfactants, Hester Biosciences, Ion Exchange (India), PTC India Financial Services, Titagarh Wagons, Wonderla Holidays

International Markets:

U.S & Europe

Particulars    7th June. Chg Chg(%)
Nasdaq 13,881.72 67.23 0.49
Dow 34630.24 -126.15 0.36
FTSE** 7,077.22 8.18 0.12
CAC** 6,543.56 27.9 0.43
DAX 15,677.15 -15.75 -0.1
Dow Fut.* 34,601.00 -15 -0.04

Asian markets:

Particulars    8th June. Chg Chg(%)
SGX Nifty 15,814.00 34.5 0.22
Nikkei 29,024.98 5.74 0.02
Straits Times 3,172.30 -3.51 -0.11
Hang Seng 28,877.82 90.54 0.31
Shanghai 3,609.89 10.35 0.29

ADR Watch:

Particulars       7th June. Chg Chg(%)
Dr Reddy 71.79 -0.48 -0.66
HDFC Bank 76.92 0.08 0.1
ICICI Bank 17.92 -0.01 -0.06
Infosys 19.4 0.11 0.57
Tata Motor 23.8 0.2 0.85
Wipro 8.19 0.1 1.24

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR        72.80 -0.27
Brent 70.93 -0.78
Gold 1900.65 0.10
Silver 27.962 -0.20

FIIs & DII

Particulars       7th June.     4th June.
FIIs -186.46     1499.37
DIIs   983.97 -1175.01

Results:

Union Bank of India Q4FY21 (Standalone, QoQ) NII down 18% at Rs 5,402.86 crore Vs Rs 6,589.55 crore Net profit up 83% Rs 1,329.77 crore Vs Rs 726.84 crore GNPA at 13.74% Vs 13.49% NNPA at 4.62% Vs 3.27% Provisions down 26% at Rs 3,904.28 crore Vs Rs 5,255.89 crore Loan loss provision at Rs 4,711.51 crore Vs Rs 3,036.10 crore

Brokerage Radar;

Macquarie on MRF: Downgrade Neutral to Rs.90,000 (Prev TGT: Rs.1,00,000).Q4 margin declined sharply Q-o-Q due to commodity cost pressure.Both Revenue and margin have underperformed peers. Expect margin to face headwinds over the next few quarters. Full valuations limit near-term stock upside.Lower FY22/23 EPS Estimates by 14%/8%

News Update:

Jindal Steel & Power: Steel production up 31% to 13.71 lakh tonnes in April-May 2021 as compared to 10.44 lakh tonnes in the same period last year. Confident of achieving FY22 production target of 8-8.5 MT. Steel sales up by 7% year-on-year to 10.58 lakh tonnes.

Bharat Petroleum: Shuts crude unit at Kochi; Oil-processing dips to 76%-78%

Dhampur Sugar Mills: Approved demerger of Asmoli, Mansurpur and Meerganj units to the resulting company (a wholly-owned subsidiary of the company). The turnover of the demerged divisions for the FY21 was Rs 2,034.13 crore representing 48% of the total turnover of the demerged company for the said financial year.

InterGlobe Aviation: Expect domestic travels to reach February levels by year end, said CEO Ronojoy Dutta. International travel recovery pushed to fourth quarter of FY22. Net cash burn up to Rs 19 crore per day in Q4 compared to Rs 15 crore per day in Q3.

Infosys: Announced a collaboration with Archrock, Inc. to integrate digital technologies and mobile tools for its field service technicians. Infosys will leverage its pre-configured accelerator for Microsoft Dynamics 365 Field Service Application to streamline and enhance the efficiencies of Archrock’s field services and operations

Surya Roshni: Received order of Rs 170.52 crore for supply of coated line pipes to lndradhanush Gas Grid Ltd for North-East Gas Grid Pipeline Project

Shriram Transport Finance Company: Approved raising of funds by issuance of equity shares and warrants to Shriram Capital, promoter of the company, on a preferential basis. To issue 17,36,100 shares and warrants separately at Rs 1,440 per

SBI: Invests in digital payments firm Cashfree.

Indiabulls Housing Finance and Indiabulls Commercial Credit Ltd: Companyhas entered into a strategic co-lending partnership with Central Bank of India to offer secured retail and MSME loans at competitive rates. IBH and ICCL will originate loans as per credit policy jointly drawn up with Central Bank of India. IBH/ICCL will retain 20% of the loan on their books while 80% will be on Central Bank of India’

Hindustan Construction Company: Defaulted on payment of loan of Rs 2,030.64 crore from banks, financial institutions, and unlisted debt securities. The total amount of loan outstanding as on date stands at Rs 4,147.84 crore.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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