Dr Reddy’s Laboratories, ONGC, Reliance Industries, SBI Life Insurance, and Tata Motors were the top gainers in the Nifty 50. While Bharti Airtel, Axis Bank, ICICI Bank, Kotak Mahindra Bank, and IndusInd Bank were the major losers in the Nifty 50 on June 28.

“The latest round of tariff hikes wherein the telcos increased the prepaid tariffs by around 15-20% will provide the traction in the average revenue per user (ARPU) levels and can result in additional operating profits of around Rs 20,000 crore for the industry once these hikes are fully absorbed. This will result in increased profit generation, thereby providing headroom for the industry to undertake deleveraging as well as fund capex for the technology upgrade as well as network expansion. ICRA expects the industry revenues to grow by 12-14% in FY2025, which given the operating leverage, is likely to translate into healthy expansion in operating profits by 14-16%. This, in turn is likely to result in improvement in industry ROCE to more than 10% for FY2025. ICRA expects industry to report revenues of Rs 3.2-3.3 lakh crore with operating profits of Rs 1.6-1.7 lakh crore in FY2025. The improvement in operating profits coupled with the muted participation in the latest spectrum auctions and expected moderation in the capex intensity, the debt levels are expected to moderate to around Rs 6.2-6.3 lakh crore as on March 31, 2025, with expectation of further decline going forward. This is likely to result in steady improvement in debt metrics with industry debt/OPBDITA at 3.7-3.9x and interest coverage at 3.1-3.3x for FY2025,” said Ankit Jain, Vice President and Sector Head of Corporate Ratings at ICRA.

“Spot gold recovered on Thursday ahead of today’s US PCE inflation data on slightly softer US yields and a weaker Dollar. Spot gold closed nearly 1.27% higher at $2327, though commodities were mixed as the base metals and the energy complex slid, while the precious metals gained. The ten-year US yields were around 1% lower at 4.28%, which pushed the Dollar Index lower. Atlanta Fed President Bostic said that rate cut in the fourth quarter was possible should the Fed gain enough confidence on inflation trajectory. The US data released Thursday were mixed. Today’s US PCE inflation data, the Fed’s preferred gauge of inflation, will be crucial for the metal. Overall, the outlook is still bearish in short term on hawkish Fedspeak, inflation concerns and a firmer US Dollar, which is up today following Trump -Biden presidential debate. Support is at $2300/$2277. Resistance is at $2350/$2370,” said Praveen Singh, Associate Vice President of Fundamental Currencies and Commodities at Sharekhan by BNP Paribas.

Shares of Central Depository Services rallied almost 16% to a fresh 52-week high of Rs 2,324.80 after the company announced to consider issuance of bonus shares on July 02. The board of directors will meet on July 02 to consider and approve the aforementioned issuance.

Commenting on the Gold & Silver outlook Renisha Chainani, Head Research – Augmont – Gold For All said that Gold and Silver have rebounded from important support of $2300 (Rs 70800) and $29 (Rs 86000) respectively as US GDP and pending Home Sales data came in weaker than expected. The real US GDP growth rate for the first quarter was revised up to 1.4% annualized, although it was the smallest increase since spring 2022 and confirmed a severe decline from 3.4% in the previous quarter.

Chainani also added that the US Pending Home Sales, a forward-looking indication of home sales based on contract signings, fell unexpectedly by 2.1% in May, reaching the lowest level on record dating back to 2001. US PCE price index data, which is the FED inflation gauge, to be released today will decide the further trend for next week.

Courtesy: BSE

The NSE Nifty 50 was up 64 points or 0.27% at 24,109, while the BSE Sensex was up 179 points or 0.23% at 79,422.26.

Courtesy: NSE

“The Bank Nifty index experienced volatile moves, trading in a broad range with support at 52,700 and resistance at 53,100. The index needs to decisively sustain above 53,000 for a continued move towards the 53,400/53,700 mark. However, it is trading in overbought territory, and failure to sustain above 53,000 could lead to a correction towards the 52,500/52,000 levels,” Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities. 

JSW Infra’s share price gained over 5% to reach an intra-day high of Rs 336 after the company announced its acquisition of a 70.37% stake in Navkar Corporation for approximately Rs 1,012 crore, marking its entry into the logistics industry. According to a filing by JSW Infrastructure, the company has signed a share purchase agreement with certain promoters and members of the promoter group of Navkar Corporation to acquire 10,59,19,675 equity shares, representing 70.37% of Navkar’s total equity share capital, at a price of Rs 95.61 per share.

Commenting on the Technical outlook of Nifty Rupak De, Senior Technical Analyst, LKP Securities, said the Nifty continued moving up as the bulls took the index to a new all-time high. The Nifty made new all-time highs for the last three consecutive sessions, showing signs of resilience amid global sluggishness. The trend remains positive for the short term or until it breaks below 23,800. On the higher end, the index might move towards 24,200.

Shares of Reliance Industries gains over 2% to record highs of Rs 3,129.85 on the following news Reliance Jio announced on Thursday, June 27, a tariff hike of 12% to 25% on its prepaid and postpaid plans, marking the first price increase in two and a half years.

Reliance Industries, Dr Reddy’s Lab, Bharti Airtel, Coal India, and Divis Labs are the top gainers on NSE Nifty 5o index whereas the top laggards include are UltraTech Cement Grasim, Adani Ports, Mahindra & Mahindra, and Bajaj Finance.

The NSE Nifty 50 opens up by 41.40 points or 0.17% at 24,085.90, while the BSE Sensex gains 214.40 points or 0.27% to 79,457.58 in the opening trade.

Commenting on the pre market outlook Prashanth Tapse, Senior VP (Research), Mehta Equities said that Nifty and Sensex are climbing steadily, with Nifty hitting an all-time high of 24,087.45. As fund managers prepare for the second half of 2024, the market shows resilience, brushing off negative headwinds swiftly. The outlook remains optimistic, hinging on FM Nirmala Sitharaman’s upcoming Union Budget and potential dovish signals from the Federal Reserve amid easing inflation.

Tapse also added that key resistance for Nifty is at 24,100, with a trading range of 23,500-24,100. Recommended trades include buying Nifty between 23,850-23,900 and Bank Nifty between 52,400-52,700. Notable bullish stocks are Reliance Industries, Britannia, Tata Motors, and RBL Bank, with RBL Bank poised as a strong momentum play.

Foreign institutional investors (FII) bought shares worth Rs 7,658.77 crore, while domestic institutional investors (DII) offloaded shares worth Rs 3.605.93 crore on June 27, 2024, according to the provisional data available on the NSE.

India is set to officially join the J.P. Morgan GBI-EM Global Series of indices on Friday, June 28. This inclusion could potentially lead to $25-30 billion in inflows into the country. The process will take place in phases over a 10-month period, with domestic bonds initially holding a 10% weightage and increasing by 1% each month starting this month. India will become the 25th market to join the index since its launch in June 2005.

On Friday morning, WTI crude prices are trading at $82.00, up by 0.23%, while Brent crude prices are trading at $85.45, down by 1.03%.

The US Dollar Index (DXY), which measures the dollar’s value against a basket of six foreign currencies, traded down by 0.15% to 105.89.

U.S. stocks ended Thursday around the unchanged mark as investors awaited fresh inflation data. The Nasdaq managed a slight gain after data indicated a continued slowdown in economic activity, raising hopes for rate cuts, according to Reuters. The tech-heavy Nasdaq Composite ended up 53.52 points, or 0.30%, at 17,858.68. The S&P 500 rose 4.97 points, or 0.09%, to 5,482.87, while the Dow Jones Industrial Average edged up by 36.26 points, or 0.09%, to 39,164.06.