Nifty ends near 11,800, Sensex up 311 points; metal stocks gain

At close, the Sensex was up 311.98 points at 39,434.94, while Nifty was up 96.80 points 11,796.50. About 1233 shares have advanced, 1268 shares declined, and 166 shares are unchanged. 

JSW Steel, BPCL, Reliance Industries, Axis Bank and Tata Steel were among major gainers on the indices, while losers were Yes Bank, Bharti Infratel, Asian Paints, IndusInd Bank and L&T.

All the sectoral indices ended in the green led by metal, energy, auto, PSU bank, pharma, infra and FMCG. Midcap and Smallcap indices also ended higher.   

The scenario of falling interest rates in the backdrop of failing growth and trade war along with the addition of geo-political threat in middle-east has created a perfect scenario for gold bulls. The gold has underperformed to other financial assets over 3-4 years and it started to catch-up since a year now. We believe that the momentum in gold prices would continue to push higher with potential targets of Rs 36,000/10gms by the year end seems very much possible and Rs 40000-45000/10gms as potential targets in rupee terms by 2020. We advise caution in short term as the sharp rally could see some corrections, but investors can look to buy on dips. 

Market at day's high: 

Indian indices are trading at day's high level on June 25 with Nifty above 11,750 level.

The Sensex is up 211.72 points or 0.54% at 39334.68, and the Nifty up 67.20 points or 0.57% at 11766.90. About 1065 shares have advanced, 1196 shares declined, and 137 shares are unchanged.    

Growth in India's fuel demand is expected to remain above 4 percent this year, driven by consumption of gasoline and jet fuel in the transportation sector, the head of the country's largest state-owned refiner said.

Gasoline and jet fuel demand are expected to rise by 7 percent to 8 percent this year, while diesel consumption could increase by 3 percent, Indian Oil Corp Chairman Sanjiv Singh told Reuters. Source: Reuters.

Kolkata-headquartered FMCG conglomerate Emami has kicked off the process to sell controlling stake in its paper business along with select assets in its cement business, three sources with knowledge of the matter told Moneycontrol.

Promoters hold 74.9 percent in Emami Paper Mills, which is listed on the stock exchanges and has a market capitalisation of about Rs 550 crore based on Monday’s closing price. The company made Rs 1,542 crore of revenues and a net profit of Rs 44 crore in financial year 2018-19.

The Emami promoters are keen to dispel market concerns and lower their debt burden of around Rs 2,200 crore, which was raised by pledging their shares in listed flagship Emami.

"The promoters have mandated investment bank Nomura to sell a controlling stake in Emami Paper and the process is likely to be launched shortly. Domestic strategic players are likely to express interest in the target company along with overseas players," one of the sources cited above told Moneycontrol.

Company informed exchanges that Piramal Enterprises and TPG are valuable investors / partners of the Shriram group. Both PEL and TPG are evaluating the feasibility of selling their respective shareholding in SCL.

"We understand that PEL's evaluation of exit from SCl is a part of its long-term strategy to fund growth of its financial services business. TPG's evaluation of an exit from SCl is consistent with its investment review practices, and takes into account, among other factors, the period of time TPG has been invested in SCL," it added.

Rupee at day's low?: The Indian rupee erased all its gains and trading at day's low level. It is trading flat at 69.37 per dollar versus previous close 69.35.

Market Update: Benchmark indices are trading flat to positive in the afternoon trade on June 25.

The Sensex is up 35.35 points or 0.09% at 39158.31, and the Nifty up 10.10 points or 0.09% at 11709.80. About 989 shares have advanced, 1080 shares declined, and 113 shares are unchanged. 

Buzzing: L&T Technology Services shares fell nearly 3 percent on June 25 as parent firm is selling its stake in company to meet minimum public shareholding norms.

Buzzing: Share price of IFCI rose 5 percent on June 25 after the company approved the sale of company's remaining stake of 1,20,66,871 equity shares comprising of 2.44 percent of the total equity shares of NSE.

Gautam Duggad of Motilal Oswal Financial Services told CNBC-TV18 that there is an evidence of rural consumption slowdown and hence next 8-10 months will be challenging for equity market.

Mindtree will continue to be volatile until L&T open offer gets completed and in case of Yes Bank, he prefers to wait for clarity on its capital raising plans, he said.

He further said IT sector can deliver 8-10 percent growth returns and he is positive on space.

The Indian rupee appreciated by 10 paise to 69.25 against the US dollar, driven by easing crude oil prices and weakening of the US dollar in the overseas market.

The rupee opened strong at 69.32 at the interbank forex market then gained further ground to touch 69.22 per dollar, displaying gains of 13 paise against the greenback. On Monday, the rupee had settled at 69.35 against the US dollar.

Buzzing: Shares of Piramal Enterprises shed 3 percent in the early trade on June 25 after the company said that it was evaluating the feasibility of sale of its entire (effective 20 percent) stake in Shriram Capital.

Dollar Updare: The dollar on Tuesday remained shackled by the prospects of monetary easing by the Federal Reserve while the safe-haven Swiss franc and gold were supported by simmering tensions between Washington and Tehran.

Eris Lifesciences gains 5%: Shares of Eris Lifesciences gained more than 5 percent in the early trade on June 25 as company board is going to consider buy back of shares.

Market opens: It is a weak start for the benchmark indices on June 25 with Nifty around 11,650.

The Sensex is down 137.85 points at 38,985.11, while Nifty is down 41.50 points at 11,658.20.  About 244 shares have advanced, 507 shares declined, and 28 shares are unchanged. 

ONGC, NTPC, M&M, Eicher Motors, Bharti Airtel and Oberoi Realty are among major gainers on the indices, while losers are Tata Steel, JSW Steel, Indiabulls Housing, Yes Bank, Zee Entertainment, IndusInd Bank and Tech Mahindra.

Among sectors, except energy all other indices are trading lower led by metal, auto, bank, IT and FMCG.

Rupee Opens: The Indian rupee opened marginally higher at 69.32 per dollar on Tuesday versus previous close 69.35.

Market at pre-open: Indian indices are trading mixed in the pre-opening session with Nifty trading flat.

At 09:02 hrs IST, the Sensex is up 106.72 points or 0.27% at 39229.68, and the Nifty down 2.10 points or 0.02% at 11697.60.

Buy rating, cut target to Rs 340 from Rs 435 per share

See promoter stake sale to avoid any invocation by lenders

Rate cuts & govt support can lift home buyer sentiment

Affordability has improved notably & should help the buyer confidence

Govt support of affordable housing has been strong

Any steps in budget to mid-income segments will be keenly watched

Like Godrej Properties, Sobha & Oberoi Realty

Sell call on Tata Steel, target at Rs 395 per share

Sell call on JSW Steel, target at Rs 225 per share

Steel prices under pressure, risk to earnings & steep valuations

Expect ore prices to peak in Q3CY19 & ease materially over Q4CY19 & q1cy20

Rising ore prices should weaken cost support hopes for steel

See downside risk to our below-consensus estimates

Tata Steel & JSW Steel trading at steep EV/EBITDA & PB premium to global peers

Flat steel prices in India & in the region remain soft 

Input costs continue to trend up, leading to softer spreads

Regional spreads are now at lowest levels since May 2017

Domestic long steel prices down 9% in 3 months partly on weak demand 

Maintain buy on Tata Steel & neutral on JSW Steel

Jio's broadband subscriber addition rate stabilised at 8- 9 m/Mth 

Jio commands 57% share in broadband data subs as of April

Airtel & Vodafone Idea saw weakish trends of broadband subs additions 

Unable to extend that enthusiasm towards the markets

Global growth continues to slow, but quality stocks have made a strong comeback

Favourable trade war & FOMC outcome with strong July could boost EM rally

Given the risk to global growth, longer term outlook for equities remains challenging

Consensus expects MSCI AC earnings growth at 2.5% in 2019 & 9.3% in 2020

MSCI Asia Ex-Japan's earnings growth to be -4.2% in 2019

Within Asia, India, Philippines & China will witness the highest earnings growth

Gold Update: Gold prices rose to their highest level in nearly six-years on Tuesday as the dollar sat near multi-month lows and the announcement of fresh U.S. sanctions on Iran boosted interest in the safe-haven metal.

Crude Update: Oil prices were steady on Tuesday, supported by worries over conflict between Iran and the United States but pressured by concerns about a potential decline in demand for crude.

Wall Street ends mixed: The S&P 500 edged lower on Monday as losses by healthcare companies overshadowed gains in the technology sector, while investors awaited U.S. President Donald Trump's meeting with Chinese President Xi Jinping at the G20 summit this week.

SGX Nifty: Trends on SGX Nifty indicate a flat opening for the broader indices in India, a gain of 7 points or 0.06 percent. Nifty futures were trading around 11,723-level on the Singaporean Exchange.