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End Session Commentary

Barometers end flat on late-hour buying; Nifty ends above 15,650; metal shares tumble

(16:45, 18 Jun 2021)

After recording steep losses in the intraday, the domestic equity benchmarks bounced back in late trade and ended almost flat on Friday. The Nifty closed above the 15,650 mark after hitting the day's low of 15,450.90 in mid-morning trade. Metal stocks tumbled after China announced plans to release its state reserves of copper, aluminum and zinc to ensure stable prices of commodities.

The barometer index, the S&P BSE Sensex, rose 21.12 points or 0.04% to 52,344.45. The Nifty 50 index lost 8.05 points or 0.05% to 15,683.35.

Hindustan Unilever (up 2.34%), HDFC Bank (up 0.95%), Reliance Industries (up 0.43%) and Infosys (up 0.50%) supported the indices.

The broader market underperformed the benchmarks. The S&P BSE Mid-Cap index fell 0.70%. The S&P BSE Small-Cap index declined 0.89%.

Sellers outnumbered buyers. On the BSE, 1,180 shares rose and 2,031 shares fell. A total of 141 shares were unchanged.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 17,74,38,001 with 38,42,377 deaths. India reported 7,98,656 active cases of COVID-19 infection and 3,83,490 deaths while 2,85,80,647 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

India, in the last 24 hours, reported 62,480 new coronavirus cases and 1,587 deaths. With this, the country's active caseload has dropped below the 8-lakh mark. Kerala, which had 12,469 cases, was the only state to report more than 10,000 infections.

Numbers to Watch:

In the foreign exchange market, the partially convertible rupee rose to 73.86 compared with its previous closing of 74.08.

MCX Gold futures for 5 August 2021 settlement rose 0.42% to Rs 47,155.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.02% to 91.88.

The yield on 10-year benchmark federal paper fell to 6.008% from its previous close of 6.019%.

In the commodities market, Brent crude for August 2021 settlement shed 34 cents to $72.74 a barrel. The contract fell 1.76% or $1.31 to settle at $73.08 in the previous trading session.

Global Markets:

Most shares in Europe and Asia declined on Friday, 18 June 2021.

On the data front, May's U.K. retail sales fell 1.4% month on month, official statistics revealed Friday.

Meanwhile, the German Producer Price Index (PPI) rose 1.5% month on month in May. On an annual basis, the PPI was 7.2% against a projection of 6.4%.

The Bank of Japan on Friday announced its decision to hold steady on monetary policy as well as an extension of the duration of its pandemic relief program. For the time being, the Bank will closely monitor the impact of COVID-19 and will not hesitate to take additional easing measures if necessary, and also it expects short- and long-term policy interest rates to remain at their present or lower levels, the Japanese central bank said in its monetary policy statement.

In US, the Dow Jones Industrial Average fell for a second day as investors digested the Federal Reserve's latest policy update, in which it moved up its timeline for interest rate hikes and forecast higher inflation. A fresh bout of rotation from cyclical stocks pushed the tech-heavy Nasdaq gauge to another record.

The number of Americans applying for unemployment benefits rose last week for the first time since April despite widespread evidence that the economy and the job market are rebounding steadily from the pandemic recession.

The Labor Department said on Thursday that jobless claims rose 37,000 from the week before to 412,000.

Buzzing Indian Segment:

The Nifty Metal index fell 0.91% to 5,048.65. The index has declined 6.62% in five sessions.

SAIL (down 3.7%), Vedanta (down 3.56%), Coal India (down 3.38%), JSW Steel (down 3.3%), Welspun Corp (down 1.87%), APL Apollo (down 1.56%), Hindustan Zinc (down 1.51%), NALCO (down 1.24%), Jindal Steel & Power (down 1.04%), NMDC (down 0.81%) and Tata Steel (down 0.78%) tumbled.

China's National Food and Strategic Reserves Administration on Wednesday said it will start releasing copper, aluminum and zinc stocks in several batches to downstream processors in the near term, a move seen as to ensure supply and stabilize prices in domestic markets. The statement by the administration did not provide details on quantities of metal to be sold, the auction process or which manufacturers will be allowed to bid.

Primary Market:

The initial public offer (IPO) of Dodla Dairy received bids for 38.77 crore shares as against 85.07 lakh shares on offer, according to the stock exchange data at 16:25 IST on Friday (18 June 2021). The issue was subscribed 45.58 times.

The IPO of Krishna Institute of Medical Sciences received bids for 5.55 crore shares as against 1.44 crore shares on offer, according to the stock exchange data at 16:25 IST on Friday (18 June 2021). The issue was subscribed 3.86 times.

The IPOs of Krishna Institute and Dodla Dairy opened for subscription on Wednesday (June 16) and will close on Friday (June 18).

Stocks in Spotlight:

Power Grid Corporation of India fell 2.80%. On a consolidated basis, the company's net profit rose 6.42% to Rs 3,526.23 crore on 3.57% increase in revenue from operations to Rs 10,510.23 crore in Q4 March 2021 over Q4 March 2020.

The board has recommended a final dividend of Rs 3 per share for the FY 2020-21. It has also recommended issue of bonus shares in the ratio of 3:1 (one bonus share for every three existing equity share).

Natco Pharma rose 1.29%. The drug maker posted a 43% decline in consolidated net profit to Rs 53 crore on a 27.15% fall in revenue from operations to Rs 331.3 crore in Q4 FY21 over Q4 FY20.

Tube Investments of India slipped 3.21%. The company's consolidated net profit surged 142% to Rs 143.84 crore in Q4 FY21 compared with Rs 59.46 crore in Q4 FY20. Net sales during the quarter surged 165.3% year-on-year (YoY) to Rs 2624.72 crore as against Rs 989.40 crore recorded in the same period last year.

The company's board has also approved fresh long-tern borrowing, to meet the company's fund needs during the financial year 2021-22, of a sum not exceeding in the aggregate Rs 200 crore, including by way of issue of privately placed secured non-convertible debentures, in one or more tranches.

Khadim India jumped 9.02%. The company's consolidated net profit stood at Rs 11.52 crore in Q4 FY21 compared with net loss of Rs 19.88 crore in Q4 FY20. Net sales surged 70.6% to Rs 269.95 crore in Q4 FY21 from Rs 158.22 crore in Q4 FY20.

Nava Bharat Ventures slumped 8.15%. The company's consolidated net profit slipped 13.9% to Rs 159.4 crore on 14.9% decline in revenue to Rs 688.67 crore in Q4 FY21 over Q4 FY20.

Healthcare Global Enterprises lost 4.61%. The company's consolidated net loss widened to Rs 113.76 crore in Q4 FY21 compared with net loss of Rs 50.44 crore in Q4 FY20. Net sales rose 10.2% to Rs 297.04 crore in Q4 FY21 from Rs 269.50 crore in Q4 FY20.