Mid market commentary June 24
The stocks with reasonable operations in UK and EU and the stocks that have considerable shareholding from FIIs tumbled the most dragging the Indian markets to bleed, which are now down by 3 per cent. BREXIT won with the Leave camp voting 51.8 per cent in the referendum.
Nifty and Sensex hit a low of 7939 and 25945 respectively. Broader markets too tumbled more than 3 per cent accounting to just 214 advances and 1991 declines. All the sectors have underperformed rigorously except for the defensives like IT, Media, FMCG and Pharma. These sectors have corrected between 2-3 per cent.
On the global front US stocks closed higher with the Dow Jones Industrial Average surging 1.3%, S&P 500 gaining 1.3%, while Nasdaq Composite soaring 1.6% where Dollar surged against most other currencies. On Friday Asian Markets gave a sharper decline after Britain voted to leave European Union. Japan’s Nikkei fell 7.9 per cent to 14950 levels. Hang Seng fell 4.5 per cent to 19937. However, Shanghai Composite Index did not have much impact and fell 1.4 per cent to 2851. Europe too opens vastly lower with DAX and CAC falling 10 per cent. UK’s DAX too tumbled 8.5 per cent.
Top Nifty losers: Tata Group dragged the markets with Tata Motors falling 12.4 per cent, TATAMTRDVR falling 11.3 per cent and Tata Steel falling 10 per cent. Hindalco and Auro Pharma followed with 9 and 8 per cent resoectively. Grasim, Infratel and Sun Pharma are least impacted and fell lesser than 1 per cent.
Nifty to remain volatile. Nifty holds above 7920-7930 for now. In case of any further downside, we hold 7910-7860 as the next supports. In case of any recovery, we hold 7990 followed by 8050 as the resistances.
Stocks to watch:
Titan/PC Jewellers: The stocks of Titan Company and PC Jewellers, the makers of gold jewellery surged more than 1.5 per cent after Gold surged 6 per cent to its highest level since last two years.
Bank of India: Bank of India has informed BSE that it has raised Rs 500 crore by issue of Basel III compliant additional Tier 1 Bonds of series III. The Bonds to bear coupon rate of 11.5 per cent per annum. Brickwork and Crisil have rated AA- and A+ to the bonds.
Sun Pharma: The stock of Sun Pharma rose after the company released share buyback in its press press release where its directors approved 75 lakh shares Buyback.
Inox Leisure: The company has commenced operations of Multiplex Cinema Theatre taken on lease basis in Bengaluru consisting of 3 screens and 338 seats.
Ashoka Buildcon: The company has announced that its Special Purpose Vehicle Ashoka Sambalpur Baragarh Tollway has received the 2nd provisional completion certificate from NHAI for the balance of 14.90 k.m. and has started toll collection.