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21 June 2021: Pre Market Report: Will the falling trend change this week?

Good Morning everyone, As we discussed in the market review last Saturday, The US market fell further after our Indian market closed on Friday, and we can see that effect on our market today.

US stocks ended sharply lower on Friday, with the Dow and S&P 500 posting their worst weekly performances in months, after comments from Federal Reserve official James Bullard that the U.S. central bank might raise interest rates sooner than previously expected spooked investors.

The Dow Jones Industrial Average fell 533.37 points, or 1.58%, to 33,290.08, the S&P 500 lost 55.41 points, or 1.31%, to 4,166.45 and the Nasdaq Composite dropped 130.97 points, or 0.92%, to 14,030.38.

Also as we discussed, this could be an opportunity to invest in your favorite stocks when the prices go down, as every analyst has a bullish view on the Indian Economy, and every fall should be considered an opportunity to invest in fundamentally strong companies.

Today also the SGX nifty hints at a gap-down start to the market. But as I have always told earlier, Whenever the markets open with a gap down, all the short sellers will book their profits and that could lead the Index to go up. What we need to see is that if the Index can sustain at higher levels or if it will break down.

Japan’s Nikkei led declines with a 3.3% drop and dipped below 28,000 for the first time in a month, while MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1% in early trading.

Companies across categories such as durables, paint, and consumer staples are raising product prices by 2 5 percent as input cost pressures increase. Metals such as aluminum and copper are used to make durables & hence we might see some surge in the prices of such scrips today.

Durables companies plan to increase prices by 3 5 percent from July of refrigerators, washing machines, and television sets due to input cost pressures.

Several FMCG, auto, consumer electronics, and retail companies have begun getting employees back to their corporate offices in small batches for a few days a week — referred to as “warm-up days”. They include Parle Products, LG, Hyundai Motors, Kia India, Tata Consumer Products, Future Group, and Panasonic among others. Now that most employees and their families have received their first Covid jab, it’s expected that offices will be fully reopened in October-November with everyone completely vaccinated by then.

They also expect states will by then allow offices to reopen for all employees who have got both doses.

With all this positivity, the Indian market should be back to a bullish move soon is what I believe.

Results on June 21

Oil India, Bharat Dynamics, Info Edge, Jaiprakash Associates, Aban Offshore, Deccan Polypacks, GPT Infraprojects, HBL Power Systems, Hindusthan National Glass, MM Forgings, Pokarna, Rico Auto Industries, Sumeet Industries, Talbros Engineering, TCNS Clothing, and VST Tillers Tractors.

FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 2,680.57 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 446.20 crore in the Indian equity market on June 18.

Stock Specific News

Telecom Stocks | Reliance Jio added 79.18 lakh, wireless subscribers, Bharti Airtel added 40.5 lakh users and Vodafone Idea gained 10.8 lakh customers during March.

ICICI Bank | S&P Global Ratings has reaffirmed the bank’s rating at BBB- and has changed the outlook from negative to stable. The stable outlook reflects S&P’s expectation that the bank’s capitalization will remain strong over the next 24 months, despite some deterioration in asset quality owing to COVID-19.

PNB Housing Finance | Sebi has directed the company to halt its proposed Rs 4,000 crore deal with Carlyle group.

HDFC Bank | The bank will buy more than 3.55 crore shares, or a 4.99 percent stake in group firm HDFC ERGO General Insurance Company for over Rs 1,906 crore from the parent company Housing Development Finance Corporation (HDFC).

Vedanta | The company has emerged as the highest bidder for Kuraloi (A) North coal mine in Odisha under commercial coal auction.

NTPC | The company’s Q4FY21 consolidated profit jumped to Rs 4,649.49 crore from Rs 1,629.86 crore, while revenue fell to Rs 30,102.6 crore from Rs 30,390.51 crore, YoY.

Reliance Home Finance | Authum Investment and Infrastructure Ltd (AIIL) have emerged as the highest bidder for the company with a Rs 2,911 crore offer.

Centrum Capital | The RBI gave in-principle approval to Centrum Financial Services to establish a Small Finance Bank (SFB) with Resilient Innovations Pvt Ltd (BharatPe) as an equal partner.

Adani Power | The company has emerged as a successful bidder for Essar Power’s 1,200 MW thermal power project in Mahan, Madhya Pradesh

Srei Infrastructure Finance | Subsidiary Srei Equipment Finance has received investment interest of Rs 2,000 crore from a US-based Arena Investors LP (Arena) led consortium.

Aditya Birla Fashion And Retail | The company has acquired an additional 7.69 percent stake in Finesse and raised its shareholding to 58.69 percent.

Karnataka Bank | The lender has declared the accounts of Reliance Home Finance and Reliance Commercial Finance a fraud with combined loan outstandings of over Rs 160 crore.

UCO Bank | The bank’s board will meet on June 23 to consider raising up to Rs 500 crore as tier-II capital.

BHEL | CRISIL has downgraded the company’s long-term credit rating to AA-/Negative from AA/Negative reflecting weakening of the business and financial risk profile of the company.

RattanIndia Power | The company reported consolidated profit at Rs 39.28 crore in Q4FY21 against a loss of Rs 511.77 crore in Q4FY20. Revenue rose to Rs 862.13 crore from Rs 294.33 crore, YoY.

Capacit'e Infraprojects | The promoter and promoter group have sold 34,93,297 shares of the company amounting to Rs 70.56 crore.

Hinduja Global Solutions | The company’s Q4FY21 consolidated profit jumped to Rs 130.31 crore from Rs 44.84 crore, while revenue rose to Rs 1,563.58 crore from Rs 1,285.7 crore, YoY.

GMR Infrastructure | The company’s board has approved the re-appointment of Grandhi Kiran Kumar as Managing Director & CEO of the company for a further period of 3 years w.e.f. July 28, 2021, subject to the approval of the shareholders.

SBI Card | The company approved the appointment of Mr. Mihir Narayan Prasad Mishra as Nominee Director (nominated by State Bank of India) of the Company with immediate effect

Zydus Cadila | The company is likely to seek emergency use authorization for its Covid-19 vaccine

With all this info, I am sure you are ready for the market today with complete confidence. Let us discuss more in our group & grow together.

-Srikant Rajan

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