Market Updates 06 July 2022
Telegram.me/AlliesFin*Mkt. Updates :*
*SGX Nifty +90 pts (15856) from last trade 15766 ,*
Nikkei -235 pts ,
Hangseng -75 pts ,
Now @6.52am .
Dow -129.44 pts ,Nsdq +194.39 pts, S&P
+6.06 pts, Bovespa -314 pts , Ftse -207 pts , Dax -372 pts , Cac -159 pts , Crude @ $101.47 brl (+1.97), Brent @ $105.08 brl (+2.31) , Gold @ 1768.70 (+4.80), Silver @ $19.205 (+0.08), Euro @ $1.0264, JPY @ $135.65, INR @ 79.275
*US GOVT. 10-YEAR YIELD : 2.82%*
*Today's Corporate Action, 06 July Ex Date :*
CENTURYTEX
Dividend - Rs. - 4.0000
PONNIERODE
Dividend - Rs. - 5.50000
*Today's Key Results/Board Meetings, 06-Jul-22 :*
ATHENAGLO
Preferential Issue of shares
BINDALAGRO
Interim Dividend
CAPRICORN
General
CUB
A.G.M.;General
GKP
General
MANGIND
General
MASFIN
General
PADAMCO
A.G.M.;General
PBAINFRA
Voluntary Delisting of Shares
POWERGRID
General
RAJGASES
Issue Of Warrants
SETCO
Audited Results;General
SKCIL
A.G.M.;General
SMLT
A.G.M.;
General
SUPER
A.G.M.
*SEC. IN F&O BAN FOR, 06 JUL, 2022 :*
*1. NIL*
*ADDITION : NIL*
*DELETION : NIL*
• Bajaj Finance Reports 61% Rise Y/y in Loans Booked in Q1 of FY23
• India to Supply Fuel to Sri Lanka Only After Advance Payment
• India June Employment Rate at Two-Year Low, CMIE’s Vyas Says
o Employment shrank by 13M, including 10M staying out
• India Tax Relief on Biofuels to Boost Gasoline, Diesel Blending
• Saudis Raise Oil Prices to Near Record as Demand Seen Robust
o Aramco raises Arab Light grade by $2.80 a barrel for Aug.
• Tussle Over $5 Billion Wages a New Risk to India Coal Supply
o Unions warning of possible worker unrest at Coal India
• Axis MF Says Findings of Internal Probe Shared With India’s Sebi
• India Investigators Search Offices of Chinese Mobilemaker Vivo
• India Court Directs Probe Agency to Review Orders Against Xiaomi
• SpiceJet Boeing 737 Max En Route to Dubai Diverts to Karachi
o Aircraft was flying Delhi to Dubai with 138 passengers
• India Cumulative Monsoon Rainfall 2% Below Normal as of July 5
• India Services Expands at Fastest in 11 years on Demand Revival
o S&P Global services PMI rose to 59.2 in June vs 58.9 in May
• Emerging Market ETFs Rise for 2nd Week in $1.08 Bln Streak
• Global Funds Buy Net INR13B of India Stocks on Tuesday: NSE
o Domestic funds sell net 2.58b rupees of stocks
• Foreign Investors Sell Net INR14.3B of Indian Equities on Monday
• Foreigners Sell Net INR2.73B of India Equity Derivatives Tuesday
• Biocon (BIOS): Says unit Biocon Biologics Receives EU GMP Certification for Its New Biologics Manufacturing Facility in Bengaluru
• Garden Reach Shipbuilders (GRSE): Inks Pact With Bengal to Build Electric Ferry
• J.Kumar Infra (JPI): Says its Jv wins Mumbai Sewer Tunnel order; Co.’s shares in order at INR3.43b
• Marico (MRCO): Sees Mid-Single Digit Decline in 1Q India Volume
• SJVN (SJVN): Says its power generation rose by 12.29% to 2,736.3m units Y/y: PTI
• Tata Steel (TATA): 1Q India crude steel output 4.92m tons vs 4.63m Y/y; 1Q Europe liquide steel output 2.43m tons vs 2.67m Y/y*Very Good Morning!!!*
*US Markets in Detail!!
*SGX: 15,834: +68: +0.43
*Provisional Cash Rs. In Crs. (6th July)
FIIs: +1,296 (6,676 – 6,131
DIIs: -258 (5,191 – 5,380
Sensex: 53,134 (-100) (-0.19
Nifty: 15,811 (-25) (-0.15%
BankNifty: 33,816 (-125) (-0.37%
NiftyIT: 27,695 (-196) (-0.70%
MIDCAP: 21,960 (-78) (-0.35%
Dow: 30,968 (-129) (-0.42%
S&P: 3,831: +6: +0.16
Nas: 11,322: +194: +1.75
Brazil: 98,295 (-314) (-0.32%
Ftse: 7,025 (-207) (-2.86%
Dax: 12,401 (-372) (-2.91%
Cac: 5,795 (-160) (-2.68%
MOEX: 2,227: +22: +1%
WTI Oil: $99.5 (-9) (-8.24%
Brnt: $102.99 (-10.51) (-9.26%
Gold: $1,764 (-38) (-2.09%)
Silver: $19.12 (-2.78%
Copper: $342 (-19) (-5.24%
Copper (LME): $8,006 (-42) (-0.52%
Zinc (LM): $3,118: +89: +2.94
Alluminum (LME): $2,464: +20: +0.82
Tin (LME): $26,600 (-50) (-0.19%
Eur-$: 1.026
GBP-$: 1.195
Jpy-$: 135.8
Re: 79.37: +0.53
USD = RUB: 63.8043: +13.39
US10yr: 2.88
GIND10YR: 7.391: +0.23
$ Index: 106.4990: +1.29%
US Vix: 27.54: +0.04
India Vix: 20.7875 (-0.88%
BalticDry: 2,159 (-55) (-2.48%
*ADR/GD
Cogni (-0.46
Infy (-0.95%
Wit (-1.85%
IciciBk: +1.78
HdfcBk: +0.54
DrRdy: +0.05
TataMo (-0.68%)
TatSt (-1.85%
Axis (-1.45%
SBI (-0.67%
RIGD: +0.16
INDA: +0.03% (IShares MSCI INDIA ETF
INDY: +0.12% (IShares MSCI INDIA 50 ETF
EPI (-0.03%) (Wisdom Tree India Earning
PIN (-0.03%) (Invesco India Etf
*U.S. stocks close mostly higher after staging a sharp intraday rebound. Falling oil prices helped bolster appetite for inflation-sensitive tech stock
*US Treasuries rallied as talks of easing tariffs on China imposed by the former administration failed to alleviate recession fears. Commodities from oil to copper remained under pressure as the dollar rose
U.S. stocks eked out gains on Tuesday as investors’ appetite for risk suddenly reversed about halfway through the session, sparking a tech-led rebound that helped two of the three main U.S. benchmarks close highe
The S&P 500 eked out a modest gain after falling as much as 2.2%, as easing energy prices and bond yields took pressure off higher-valuation shares. The tech-heavy Nasdaq 100 jumped 1.7%. Treasury yields declined, with the 10-year yield around 2.83%. The Dow dropped 129.44 points, or 0.4%, to finish at 30,967.82; *it had been down more than 700 points at its lows earlier in the session
*Data released Tuesday also showed durable goods orders and factory orders rose more than expected in May
*Investors continued to fret over a potential US recession and stubborn inflation despite talks of tariff reductions. US and Chinese officials held discussions after reports that Washington is close to rolling back some of the trade levies imposed by the former administration. Reducing tariffs on imported Chinese goods could impact consumer prices in the US, but some suggest that it would do little to cool inflation
Stocks bounced on Friday, but still ended the week with hefty losses after the S&P 500 logged its worst first-half performance since 1970. U.S. equity markets were shut on Monday for the Independence Day holida
*Volume on U.S. exchanges was 12.39 billion shares, compared with the 13.03 billion average for the full session over the last 20 trading days
*What drove market
*The collapse in oil prices and surge in the dollar’s value to new multi-decade highs against the euro EURUSD were the two main factors driving markets on Tuesday, analysts said. The U.S. crude oil benchmark settled more than 8% lower on Tuesday afternoon. The euro was down 1.7% against the dollar, with a dollar worth more than 1.03 euros
*Treasury yields fell Tuesday, as two-year and 10-year notes cemented their largest four-day rally in roughly two years. The yield on the short-dated notes briefly traded above that of the 10-year notes as it had twice earlier this year. This so-called “inversion” of the yield curve is widely considered to be a harbinger of slowing economic growth
“I think there’s an expectation that economic reports might come in not as inflationary as expected,” said an expert. “I think that’s what’s fueling the rally today at least in the Nasdaq since it’s more interest rate sensitive
Falling commodity prices have helped assuage inflation expectations, which in turn helped to lift the mega-cap tech names that often drive trading in the Nasdaq. Meta Platforms shares rose 5.1%, those of Amazon.com Inc. gained 3.6% and shares of Alphabet Inc. advanced 4.2%, according to FactSe
*In other news, there were reports that the Biden administration may roll back tariffs imposed on some Chinese goods, potentially helping to crimp inflation imported into the U.S. There also was better economic news out of China. The world’s second biggest economy saw its service sector expand in June at the fastest pace in nearly a year
Looking ahead, equity investors are facing a second-quarter earnings season that poses a risk to stocks as company executives could share more tidbits about a slowing econom
*Analysts polled by FactSet already lowered their expectations for earnings growth during 2022. For the S&P 500, the estimated earnings growth rate for the second quarter of 2022 is 4.1%. If 4.1% is the actual growth rate for the quarter, it will mark the lowest year-over-year growth rate for the index’s members since Q4 2020, according to FactSet
*Later this week, the Federal Reserve on Wednesday will release the minutes for its June interest rate-setting meeting as they brace for another 75-basis-point rate hike at the end of the month., while Friday sees publication of the June U.S. nonfarm payrolls report. Both will be eagerly scanned by investors for clues to the likely pace of Fed interest rate rises.*
*According to Dow Jones estimates, job growth likely slowed in June with 250,000 nonfarm payrolls added, down from 390,000 in May. Economists surveyed expect the unemployment rate to hold at 3.6%
*The U.S. economic data front was relatively quiet, with U.S. factory orders jumping 1.6% in May in a show of strength among manufacturers, although a more recent survey of of top executives suggests demand might be waning in tandem with a slowing economy
With the first half of the year moving into the rear-view mirror, investors can’t help but wonder what lies ahead in a year that thus far has wrought heightened levels of uncertainty, disruption and dysfunction that has rattled asset class values across the spectrum of the good, the bad, and the ugl
*The odds of a US recession in the next year are now 38%, according to latest forecasts from Bloomberg Economics. Signs of a rapidly deteriorating US economic outlook have spurred bond traders to pencil in a complete policy turnaround by the Federal Reserve in the coming year, with interest-rate cuts in the middle of 2023
Concerns about economic growth are hanging over investors as the U.S. market looks to recover after a rough first half to the year. The market has dropped in four of the past five weeks, and the S&P 500 is more than 20% below its record high. Some economists believe U.S. GDP declined for both quarters to start the year, which is a shorthand used by many to signal a recessio
The benchmark 10-year Treasury yield and the 2-year yield inverted on Tuesday, a move that has a strong historical track record as a recession indicator. When short-term Treasury yields trade above long-term yields, it could be a sign that investors expect an economic slowdown to lead to rate cut
*The outlook for the second half of the year is murky. Credit Suisse strategist Jonathan Golub said in a note to clients on Tuesday that he expects the U.S. to avoid a recession but cut his S&P 500 target for the end of the year to 4,300 from 4,900. The new target would mean Wall Street claws back about half of its losses from the first six months of the year
*“Recessions are most accurately characterized by a meltdown in employment accompanied by an inability of consumers and businesses to meet their financial obligations. While we are currently experiencing a meaningful slowdown in economic growth (from extremely high levels), neither of the above conditions are present today,” Golub wrote
*Companies in focu
• *Tesla Inc.* on Saturday said it sold more than 254,000 cars and SUVs from April through June, an 18% drop from the first three months of this year and well below the pace in last year’s final quarter. Still, shares of the electric-vehicle maker climbed 2.6%
• *Exxon Mobil Corp.* said in a filing late Friday that it expects a boost of at least $2.5 billion to its bottom line in the second quarter from rising prices for oil and gas, with billions more coming from higher margins for gasoline and other energy products
• Shares of a handful of oil and gas firms fell about 6% to more than 8%: Halliburton, ConocoPhillip, Hess Corp.,and Diamondback Energy
• Shares of *Ford shed 1.1%* after the automaker’s second quarter sales rose more slowly than expected.
In Asia, Japan’s Nikkei 225 rallied 1% to 26,423 and China’s Shanghai Composite closed barely changed at 3,40
*In Australia, the central bank raised its key interest rate as expected to 1.35%. It’s among more than 80 central banks to have raised rates this year. The nation’s dollar weakened after the decision
*Concerns about economic growth were also growing overseas. The Bank of England said Tuesday that the global economic outlook had “deteriorated materially.” In currency markets, the Euro slid to a 20-year low against the dollar on Tuesday
*In Europe, equities dropped to the lowest since January 2021 ahead of the earnings season, which investors will watch closely to see whether corporate profit growth can handle inflation and supply constraints.
*The euro also fell to its lowest level in two decades on Tuesday as fears of a recession in the euro zone ramped up, with gas prices soaring and the Ukraine war showing no signs of abating
*The July Sentix Economic Index on Monday showed investor morale across the 19-country euro zone has plunged to its lowest level since May 2020, pointing toward an “inevitable” recession
European markets failed to build on solid momentum after the region’s indexes closed higher on Monday, albeit wrapping up a quieter day for global markets given the July Fourth holiday in the United State
Fears of an impending recession as central banks tighten monetary policy to rein in soaring inflation have continued to induce volatility in global stock market
*Central bank action is also likely to guide market sentiment in Europe this week
*The Bank of England published its latest biannual Financial Stability Report on Tuesday, which outlined a number of risks to the U.K. economy including ongoing disruption to food and energy markets as a result of the Russia-Ukraine war
*“The global economic outlook has deteriorated materially,” Andrew Bailey, governor of the BOE, warned in a briefing Tuesday. “It is the right time to lock in resilience so that we are well prepared for future possible shocks.”
*Later in the week, the European Central Bank is set to publish accounts of its latest monetary policy discussion on Thursday
*On the data front, June’s euro area services PMI (purchasing managers’ index) came in at 53.0, slightly above a consensus forecast of 52.8 but down from 56.1 in May
Bitcoin rose after waffling throughout the session. It traded around the $20,000 leve
*What to watch this week
• FOMC minutes, US PMIs, ISM services, JOLTS job openings, Wednesda
• EIA crude oil inventory report, Thursda
• Fed Governor Christopher Waller, St. Louis Fed President James Bullard, scheduled to speak, Thursda
• ECB account of its June policy meeting, Thursda
• US employment report for June, Frida
*Currencie
• The Bloomberg Dollar Spot Index rose 1
• The euro fell 1.5% to $1.026
• The British pound fell 1.3% to $1.195
• The Japanese yen fell 0.1% to 135.78 per dolla
*Bond
• The yield on 10-year Treasuries declined five basis points to 2.83
• Germany’s 10-year yield declined 15 basis points to 1.18
• Britain’s 10-year yield declined 15 basis points to 2.05
*Commoditie
• West Texas Intermediate crude fell 8.1% to $99.69 a barre
• Gold futures fell 1.9% to $1,766.60 an ounce.
*India Daybook – Stocks in News*
*Oil downstream stocks:* Crude fell by more than 10 percent overnight. (Positive)
*Bajaj Finance:* Booked 74 lakh new loans in April-June Vs 46 lakh a year ago. (Positive)
*Biocon:* Biologics Gets EU GMP Certification for its Biologics Manufacturing Facility in Bengaluru. (Positive)
*JKIL:* JV Gets Order Worth Rs 571 Crores from BMC (Positive)
*Tata Power:* Signs MoU With Tamil Nadu Government For Setting Up Solar Plant (Positive)
*TVS Motor:* Company will launch a new motorcycle, TVS Ronin. (Positive)
*Power Grid:* Board meet to consider raising funds up to Rs 6,000 crore. (Positive)
*Control Print:* Entered into an agreement with MARKPRINT B.V. incorporated in Netherlands. (Positive)
*Concor/GDL/Navkar:* JNPT Container volume improved by 11.6% YoY (1.4% MoM) in June 2022 (Positive)
*Garden Reach* Inks Pact With Bengal to Build Electric Ferry (Positive)
*Concor:* Cabinet may consider the proposal of amendment in Railways Land License fees policy today (Positive)
*Krsnaa Diagnostics:* The Company has operationalized diagnostics center at Moga, Punjab. (Positive)
*LIC:* Commencement of various branches under central and eastern zone. (Positive)
*Transcorp:* Tide partners with Transcorp to roll-out RuPay powered Expense Card. (Positive)
*Satia Ind:* Awarded an order worth Rs 105 cr from NCERT for supply of 11,000 tons of Maplitho paper of 80 GSM in sheets and reels for printing of text books. (Positive)
*Poonawalla Fincorp Q1:* Disbursements up 98% YoY to Rs 3,430 cr. Asset quality improving. (Positive)
*Tejas Network:* Execution of SPA with Saankhya Labs for acquisition of 62,51,496 equity shares. (Positive)
*Shoppers Stop:* Company to add 12 new stores in FY23; To focus on private labels. (Positive)
*KPI:* Received biggest new order of 26.60 MWdc Solar Power Plant under Captive Power Producer Segment (Positive)
*SJVN:* Says its power generation rose by 12.29% to 2,736.3m units Y/y: PTI (Positive)
*Titan:* Company plans on opening stores in West Asia & North America (Neutral)
*Tata Steel:* Q1 India crude steel production at 4.92 million tons (Neutral)
*IEX:* Company achieves 8,267 million units volume in June, up by 17% YoY. (Neutral)
*Marico:* India business saw volumes decline in mid-single digits, driven by Saffola Oil.
*Oil upstream stocks:* Crude fell by more than 10 percent overnight.
*Metal stocks:* Metal prices fell by upto 5 percent overnight.
*ACC/Ambuja:* Company Says Open Offers not starting today
*West Life:* ICICI Pru Life Sells 2.02% Stake
*SRF:* Dropped 6% on fears of US lifting sanctions on China which could lead to lower prices and impact margins.
*SpiceJet:* Boeing 737 Max En Route to Dubai Diverts to Karachi
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