Latest Stock Market News

The IT sector is experiencing a bounce back, with some companies winning big orders from different geographies. This suggests the beginning of a recovery phase for earnings in the industry. While general outsourcing and contracting work will remain under pressure, companies serving niche or differentiated segments with specific skill sets are expected to produce good results. Overall, the worst is likely over for the IT sector and a recovery phase is underway.

Senco Gold, the largest jewellery retail player in the eastern region, is set to launch its initial public offering (IPO) on July 4. The IPO comprises a fresh equity issue of up to Rs 270 crore and an offer for sale (OFS) of up to Rs 135 crore. The price band is set at Rs 301-317 per equity share, with a minimum bid of 47 shares. The proceeds will be used for working capital and general corporate purposes. The company has a strong brand name and a solid financial track record.

Zomato’s food delivery business grew faster than Swiggy’s in 2HCY22

The Indian equity markets attempted a breakout by moving past the prior top of 18,887 and closing near the high point of the week. The volatility remained low and the financial space underperformed the Nifty. The Nifty closed with a net monthly gain of 654.65 points (+3.53%). The banking and financial space has been underperforming but the Bank Nifty remains on the verge of a breakout. The India VIX reached one of its lowest points in recent years. It is crucial for Nifty to stay above 18,900 levels for the breakout to be confirmed.

The key central bankers at the ECB forum held in Sintra, Portugal discussed the economy, interest rates, and inflation. While the Bank of Japan defended its ultra-accommodative stance, the rest of the central bankers expressed concerns about inflation being above their target levels. Federal Reserve Chair Powell stated that the US economy is resilient and may require two more rate hikes. The Chinese Yuan continued to weaken, and US yields surged higher on a hawkish Federal Reserve and an upward revision in US Q1 GDP. Gold prices fell, and investors will focus on upcoming economic indicators and the US nonfarm payroll report.

The Nifty is showing strength and poised to reach its immediate target of 19,450. However, investors should expect increased volatility as markets trade at record highs. Nifty breached its December 2022 highs, which is crucial for the next leg of the rally. Both Nifty and Bank Nifty are technically strong, with indicators signaling an uptrend. Sectors like pharma, healthcare, auto, IT, and infrastructure have performed well and could continue to do so. Investors should consider booking profits in small and midcaps and maintain a diversified portfolio.

In June, the best-performing sectors in the Indian market were consumer discretionary, realty, healthcare, automobiles, and capital goods. The S&P BSE Realty, Healthcare, and Capital Goods sectors saw 9-10% upside. Smallcap stocks in the automobile and auto ancillary sector also performed well. Analysts remain bullish on the auto ancillary space due to strong automobile demand. In the capital goods space, 31 smallcap stocks had double-digit returns. The healthcare sector also gave good returns, with several stocks experiencing significant gains. However, banks, financials, information technology, and oil and gas sectors underperformed.

Experts believe that the BlackRock Bitcoin exchange-traded fund (ETF) is more likely to get approval from the U.S. Securities and Exchange Commission (SEC) compared to previous ETF filings due to its surveillance agreement with Coinbase and NASDAQ. The SEC has expressed concerns about the lack of surveillance and fraud detection in the spot market, and the involvement of Coinbase, a major exchange, in providing data on Bitcoin trading to NASDAQ addresses these concerns.

Non-Banking Financial Companies (NBFCs) have seen increased optimism in their stocks due to expectations of interest rate cuts and peaking government bond yields. NBFCs, which rely on bank borrowings and non-convertible debentures (NCDs), benefit from a changing rate environment, especially those with a higher share of floating rates. The recent decline in government bond yields indicates market expectations of a dovish stance by the RBI. Additionally, the competition in the wholesale borrowing market is expected to ease after the HDFC Bank and HDFC Ltd merger. However, factors such as credit growth and asset quality also need to be considered when evaluating the sector.

The U.S. Securities and Exchange Commission (SEC) has reportedly stated that recent applications to launch spot bitcoin exchange-traded funds (ETFs) by asset managers were not sufficiently clear and comprehensive. The SEC conveyed its concerns to exchanges Nasdaq and Cboe Global Markets, which had filed the applications on behalf of asset managers BlackRock and Fidelity. The rejection of these applications by the SEC has dampened investor hopes and resulted in a drop in the price of bitcoin. The applicants had proposed a surveillance mechanism to prevent manipulation but did not disclose the specific bitcoin exchange involved.