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Dalal Street ended higher for the fourth straight week on positive global cues and strong buying by foreign institutional investors. For the week, the BSE Sensex jumped 1.21% to close at 63,384.58. The Nifty 50 index advanced 1.41% to close at 18,826.
Broader markets outperformed the headline indices. The BSE Midcap index surged 2.95% to 28,331.32. The BSE Smallap index soared 2.87% to close at 32,292.19.
In the cash segment, FIIs were net buyers at Rs 6,645.99 crore during the week. DIIs were also net buyers for Rs 1,319.21 crore.
Top gainers among Nifty sectoral indices were Realty [3.7%], FMCG [3.5%], Metal [3.2%], Pharma [3%], and Media [1%]. Bank [-0.1%] was the sole loser.
Indian rupee appreciated by 25 paise to close 81.94 against the US dollar on Friday.
Company News
Tata Consultancy Services (TCS): The company and Transamerica have mutually agreed to end a $2 billion contract, citing challenging macro environment among others. The 10-year contract with Transamerica was signed in early 2018 for digitization of more than 10 million policies into a single integrated platform. Administration of those policies, including life insurance and retirement and investment solutions, will be moved to a new servicing model, which will take about 30 months, TCS said.
Reliance Industries Ltd. (RIL): The conglomerate is in talks with lenders for a foreign-currency loan of up to $2 billion to fuel its ongoing expansion of its oil-to-telecoms business, Bloomberg reported citing people familiar with the matter. The company plans to use India’s dedicated external commercial borrowing route to secure the loan, the report said. The facility may have a maturity period ranging between three to five years, and the proceeds will be used for capital expenditure as well as to refinance another loan that matures in September, Bloomberg reported.
Kotak Mahindra Bank: The private lender announced that its board has approved raising up to Rs 7,000 crore in one or more tranches by issuing non convertible debentures (NCDs) on private placement basis during FY24.
Adani Group: The group is in talks with lenders, including global banks, as it plans to refinance up to $3.8 billion of a loan facility taken for its acquisition of Ambuja Cements last year, Bloomberg reported citing people familiar with the matter. The ports-to-power conglomerate owned by Gautam Adani is mulling whether to convert the original loan into debt with a longer maturity period, the report said. Banks such as Barclays, Deutsche Bank, Standard Chartered and Mitsubishi UFJ Financial Group are in talks to participate in the deal, the sources said.
IndusInd Bank: The lender has announced that it has entered into partnership with Wise to offer online inward remittance services to Non Resident Indians (NRIs) residing in US and Singapore. The users of Indus Fast Remit will have an option to choose from multiple exchange houses and money transfer companies offering competitive rates with a single sign on and an end-to-end digital journey.
Mahindra & Mahindra (M&M): The company announced that it has incorporated two new step-down subsidiaries, Gelos Solren and Furies Solren. Both the subsidiaries were incorporated with an authorized and paid-up share capital of Rs 20 lakh. The two new subsidiaries were incorporated for production and sale of power and generating electricity, distributed energy including rooftop solar installation for commercial, industrial, institutional and residential segment.
Infosys: Keytrade Bank, the first online bank in Belgium and part of Credit Mutuel Arkea, has selected Infosys Finacle as the preferred partner for the modernization of its core banking system. The bank will subscribe to the Infosys Finacle suite in a software-as-a-service (SaaS) mode on the Microsoft Azure public cloud. Infosys Finacle is a part of EdgeVerve Systems, a wholly-owned subsidiary of Infosys.
MRF: Shares of the tyre company crossed the Rs 1 lakh mark on Tuesday (June 13) and it became the first stock in India to breach the Rs 1 lakh mark per share. On the NSE, the share price touched a high of Rs 1,00,439.95 apiece (up 1.5% to Monday’s closing) and lost some of the gains to close 1.03% higher at Rs 99,992.85 per share to Monday’s closing.
Ramkrishna Forgings: The company along with TITAGARH RAIL SYSTEMS LIMITED (earlier known as Titagarh Wagons) have won Rs 12,226.5 crore contract to manufacture and supply 15,40,000 forged wheels over a span of 20 years for Indian railways. As per the contract, 40,000 forged wheels will be delivered during the first year, 60,000 wheels in the second year and 80,000 wheels every subsequent year thereafter.
Ashok Leyland: The truck manufacturer and Aidrivers, a specialist in AI-enabled autonomous solutions, will partner to produce autonomous electric terminal trucks to address the net zero emissions needs of the port industry. The two companies will combine their expertise to help sustainable autonomous transportation in the industry. The trucks will be produced at Ashok Leyland’s manufacturing facilities and orders can be placed now for delivery in 2024. The inaugural fleet of vehicles is anticipated to be ready for terminal operations early next year.
Titagarh Rail Systems Limited (TRSL) and Bharat Heavy Electricals Limited (BHEL): A consortium led by Bharat Heavy Electricals Limited (Bhel) and Titagarh Rail Systems Limited (TRSL) signed a contract for the manufacturing and supply of 80 fully assembled Vande Bharat sleeper train sets by 2029 and their maintenance for 35 years. The estimated value of the contract is Rs 24,000 crore (excluding GST).
HCLTech: The IT services company and Google Cloud expanded their partnership to help enterprises leverage generative artificial intelligence (AI) and develop joint solutions powered by Google Cloud’s generative AI technologies. HCLTech’s AI platforms and solutions will utilize Google Cloud’s full suite of enterprise generative AI products and services.
ICICI Lombard General Insurance Company: The company informed the exchanges that IRDAI, the insurance regulator, has accorded its approval to SBI Mutual Funds for acquiring up to 10% of the total paid up equity share capital of the company. IRDAI has advised SBI Mutual Funds (SBI MF) to ensure that its total shareholding shall not exceed 10% percent of the total paid-up equity share capital of the company. Further, the approval of IRDAI is valid for a period of 1 year from the date of IRDAI approval letter.
IKIO Lighting: The company had a strong stock market debut. Shares of the company opened at Rs 392.5 per share against the issue price of Rs 285 apiece. The share price touched a high of Rs 427.50 and pared some gains to closed at Rs 403.85 per share.
Economy News
India’s consumer price inflation fell to 4.25% in May 2023 as against the year-ago period. The inflation stood at 4.70% in April, according to data released by the ministry of statistics.
Meanwhile, India’s Index of Industrial Production (IIP) in April rose sharply to 4.2% from 1.1% in March, on the back of good performance by the manufacturing and mining sectors, according to official data released.
Separately, India’s wholesale price index (WPI) based inflation has dropped to its lowest level since November 2015, reaching -3.48% in May. In April, wholesale inflation stood at -0.92%. Wholesale food inflation decreased to -1.59% in May compared to 0.17% in April.
Global Markets
The US markets ended higher as inflation continued its downward trajectory and the economy showed signs of softening. Further, the Fed kept key policy rates unchanged. The Nasdaq surged 3.25%, the S&P 500 index rose 2.58% and the Dow Jones index 1.25%.
On the economic front, the Federal Reserve kept its key interest rate unchanged at the 5%-5.25% range after raising it 10 times in a row to tame high inflation. However, the Fed signalled that it may raise the interest rates two more times this year, beginning as soon as next month.
Meanwhile, the US CPI-based inflation rose 0.1% from the prior month. On an annual basis, consumer prices rose 4%, slowing from April’s 4.9%. The Labor Department said that that producer prices had declined 0.3% in May, marking four declines over the past six months. Retail sales rose 0.3% month-on-month and 1.6% year-on-year. Excluding the volatile auto and gasoline segments, sales rose 0.4% in May.
Japan’s stock markets registered strong gains for the week, with the Nikkei 225 index soaring 4.5% and the broader Topix index surged 3.4%. The Bank of Japan (BOJ) maintained ultra-low interest rates and its forecast that inflation will slow later this year. In line with expectations, the BOJ kept intact its short-term interest rate target at -0.1%.
Moreover, the yield on the 10-year Japanese government bond (JGB) fell to 0.41% for the week ended on Friday [16-06-23], from 0.43% at the end of the previous week. The yen weakened to around JPY 141 against the US dollar, from 139.4 in the preceding week, depreciating to its lowest point in about seven months.
Chinese stocks closed higher on Friday after the country’s central bank cut several interest rates to support the economic recovery. The Shanghai Stock Exchange index gained 1.3%, while the CSI 300 jumped 3.3% and the Hang Seng index climbed 3.35%.
The People’s Bank of China cut its medium-term lending facility rate by 10 basis points to 2.65% on Thursday. Meanwhile, China’s economic activity weakened in May as industrial output and retail sales grew at a slower-than-expected pace from the year-ago period.
The European Central Bank (ECB) raised interest rates by 25 bps taking its policy rate to 3.5% and the ECB may raise interest rates in the future as it flagged risks from rising wages and revised up its inflation projections.