The Indian equity market closed with smart gains on Thursday after trading sideways in the past two trading sessions. Benchmarks shrugged off early morning losses and rebounded into the positive zone during afternoon trades led by gains in the metal, banking, industrial, auto, energy, oil and gas, capital goods and select power stocks. Even the BSE Midcap and Smallcap stocks ended higher. However, pharma and consumer durables indices ended the day in the red. Nifty closed with again of 39 points at 8,219, while BSE Sensex ended witha gain of 129 points at 26,843.

On the global front, Asian stock market closed on a mixed note. In China, the Shanghai Composite and Hong Kong’s Hang Seng index closed up marginally. Japan’s Nikkei 225 ended lower by 2.4%.

European stocks trading higher ahead of the outcome of the European Central Bank’s (ECB) policy meeting later in the day. The FTSE 100 was trading higher by 0.36%. DAX and the CAC 40 are trading marginally higher.

All eyes will be on the European Central Bank and OPEC meet in Austria.

Oil prices were steady on Thursday as the market experienced mixed signals ahead of OPEC meeting in Vienna.

Shilpi Cable Technologies rallied 3% to Rs.112.55. The company received its board’s approval to set up a project at Abu Dhabi, UAE, through its subsidiary. The unit will have manufacturing capacity of 60,000 tonnes of copper products and will entail an investment of $150 million, of which $50 million will be in the form of equity and the balance $100 million of debt.

Coal India soared 3.2% to Rs.306. The company has achieved a production of 42.58 million tonnes in May, lower than the target of 44.64 million tonnes (MT) for the month. During the months of April and May, the miner produced 82.93 MT of coal against the target of 89.12 MT.

Punj Lloyd cracked 5.2% to Rs.19.20 after a UK court asked the infrastructure company to pay $26 million to International Finance Corporation (IFC) “towards their claims”.

Kajaria Ceramics climbed 4% to Rs.1,149 after the company said that its board of directors will meet on 16 June 2016 to consider stock split. The company proposes to split face value of each share from Rs 2 to Re 1.

Zee Learn gained 1.4% to Rs.29.30 after the Board of Directors at its meeting held on June 1 have decided to keep on hold the Scheme of Amalgamation of Tree House Education and Accessories Ltd.

Reliance Communications jumped 3% to Rs.51. The company will shut down its CDMA services in all of its telecom circles except in 4 circles of Rajasthan, Tamil Nadu, Kerala and Karnataka, as per media reports.

Jyothy Laboratories jumped 3.5% to Rs.289. Report says that Henkel AG may invest in Jyothy Laboratories this year. Henkel had the option to pick up to 26% stake in Jyothy five years after the latter acquired its Indian subsidiary in May 2011.

VST Tillers Tractors gained 1% to Rs.1865. The company has sold 1,933 tractors for quarter ended March 31, 2016 as compared to 1,607 tractors sold during the same quarter last year.

Bank of Maharashtra gained 2% to Rs.28.40. The bank has decided to raise capital through FPO/Rights issue/QIP etc., upto Rs.1,000 crore, subject to the necessary approvals. The stock is trading 3.2% higher at Rs.28.75 on BSE.

A total of 33 stocks registered a fresh 52-week high in trades today, whereas 35 stocks touched a new 52-week low on the NSE.

USDINR trade today trading up 23 paise at 67.21 per US dollar.

Out of 1,811 stocks traded on the NSE, 778 declined and 753 advanced today.

Top 5 Nifty Gainers: M&M (2.10%), SBI (1.60%), GAIL (1.50%), BHEL (1.00%) and CIPLA (0.90%).

Top 5 Nifty Losers: Adani Ports & Sez (-2.30%), Maruti Suzuki (-2.20%) , Bharti Airtel (-1.90%), Tata Steel (-1.30%) and Coal India (-1.30%)

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It has been a positive start to the month of June as the Indian stock market closed the first trading session in the green. The gross domestic product (GDP) number for January-March quarter was robust however it failed to build the momentum. India’s GDP grew 7.9% in the January-March quarter of 2015-16, taking the overall economic growth to a five-year high of 7.6% for the entire fiscal. Even the country’s manufacturing PMI came in at 50.7 as against 50.5 in April indicating an uptick in the manufacturing data. Nifty closed with again of 20 points at 8,180, while BSE Sensex ended with again of 46 points at 26,714.

On the global front, most of the Asian indices closed the day on a negative note. Hong Kong’s Hang Seng ended lower by 0.26%, while Japan’s Nikkei 225 ended lower by 1.62%. The European indices also witnessed selling pressure. The FTSE 100 was down 0.72%, France’s CAC 40 was down 0.83% and Germany’s DAX was down 0.7%. The rupee was trading at Rs 67.45 to the dollar at the time of writing.

As per a leading financial daily, ONGC Videsh, a wholly owned subsidiary ofOil and Natural Gas Corporation (ONGC), has completed acquisition of 15% equity from Rosneft Oil Company, in JSC Vankorneft.

The deal was initially signed in September 2015. Back then, ONGC Videsh and Rosneft had signed agreement for ONGC Videsh to acquire not less than 15% shares in JSC Vankorneft, for a consideration of US$ 1,268 million.

The stock of ONGC closed the day lower by 0.2%.

Moving on to news from the banking space. As per an article in a leading financial daily, the Reserve Bank of India (RBI) has raised the cap on foreign share holding in Axis Bank. RBI has raised foreign shareholding to 62%, from the earlier limit of 49%.

Reportedly, foreign institutional investors (FIIs) and registered foreign portfolio investors (RFPIs) can now invest up to 62% of the paid-up capital of Axis Bank under the Portfolio Investment Scheme (PIS).

This was moved by the board and was approved by the shareholders through a special resolution.

Axis Bank is the third largest bank in India. In its results for the fourth quarter ended March 2016, the bank reported 18.3% YoY and 11.8% YoY growth in net interest income and net profits respectively in FY16. Both the gross and net non-performing asset levels were higher in March 2016. The provision coverage ratio was at 72% at the end of March 2016 (82% before accumulated write-offs). The restructured advances were 2.3% of total loan book. To know our view on the stock of Axis Bank, you can read our detailed result analysis (subscription required).

The stock of Axis Bank closed the day down by 0.4%.

After opening the day firm, the Indian indices have continued their momentum and are presently trading on a positive note. Sectoral indices are trading on a mixed note with stocks from the telecom, FMCG and IT sectors leading the gains.

Crude oil is witnessing volatility. At the time of writing, crude oil was trading at Rs 3,286 per barrel, down by around 1.4%. This is seen on the back of a stronger dollar and concerns about the outcome of this week’s OPEC meeting. One shall note that the Organization of the Petroleum Exporting Countries (OPEC) are going to meet in Vienna this week where a deal on capping production is to be discussed.

USDINR trade today trading down 16 paise at 67.42 per US dollar.

Out of 1,400 stocks traded on the NSE, 597 declined and 759 advanced today.

Top 5 Nifty Gainers: Tata Motors (1.74%), Coal India (1.15%), Infosys Ltd (1.00%), M&M (0.61%) and Bharti Airtel (0.59%).

Top 5 Nifty Losers: L&T (-1.47%), Bajaj Auto (-1.23%), Axis Bank (-1.09%), ITC Ltd (-1.08%) and GAIL (-1.01%)

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The BSE Sensex and NSE Nifty snapped a 5-day winning streak on Tuesday. The Indian equity market opened on a firm note but was unable to carry forward the momentum. Nifty closed with a loss of 18 points at 8,160 while Sensex ended with a loss of 58 points at 26,668..

Asian markets finished broadly higher today with shares in China leading the region. The Shanghai Composite is up 3.34% while Japan’s Nikkei 225 is up 0.98% and Hong Kong’s Hang Seng is up 0.90%. European markets are lower today with shares in France off the most. The CAC 40 is down 0.21% while Germany’s DAX is off 0.12% and London’s FTSE 100 is lower by 0.10%.

Buying activity was witnessed across majority of the automobile stocks. Tata Motor’s DVR and Tata Motor lead the pack of gainers as the latter posted a three fold rise in net profits. Meanwhile, in another development, Tata Motors’ subsidiary — Jaguar Land Rover (JLR) is also planning to invest around 3.75 billion pounds during the current fiscal 2016-17. The investment will go into expansion of global production capacity, new technologies and new vehicles, such as the Jaguar F-PACE and the Range Rover Evoque Convertible that will unleash the potential of both brands in the future.

Shares of Bajaj Auto finished the trading day on an optimistic note (up 0.6%) after it was reported that the company is planning to invest Rs 5.75 billion this fiscal in a bid to capture 25% share in the Indian motorcycle market. The company plans to use major chunk of the investment in launching new products.

The company is planning to launch an upgrade for the Platina (entry-level model) and a totally new Pulsar at the top-end in the next quarter. The company, which is currently strong in the entry level and top-end performance segment of the bike market, is looking to strengthen presence in the mid-executive segment. On the overall sales target, Bajaj Auto is reportedly targeting to sell 4.6 million units of two and three wheelers combined this fiscal, up from 3.9 million units in the previous fiscal.

The automobile industry is cyclical. Sales and profit growth depend a lot on how economic growth shapes up. When the economy is growing rapidly, auto companies see healthy growth in volumes as demand is robust. It is when the economy is bad that their mettle is really tested. In our recent edition of The 5 Minute Wrap Up Premium, we have explained what factors drive the demand for automobiles (Subscription Required).

Moving on to news from banking sector. According to an article in The Economic Times, Bank of Baroda’s non-performing assets stood below the 10% mark as the bank acquired loans from various banks for terms running from three to four months. The bank acquired ‘standard’ loans, thus lowering the proportion of bad debt in the total loan book (Subscription Required).

Bank of Baroda reported gross NPAs at 9.99% in FY16. The transactions took place under the Inter-Bank Participation Certification (IBPC) scheme, which allows the seller to buy back loans within 90 to 120 days. Of the total amount, close to Rs 35 billion of loans were reportedly acquired from Bank of India in two tranches.

Meanwhile, global rating agency Standard & Poor’s has downgraded four public sector banks and issued a negative outlook on a fifth following a surge in their bad loans. The downgraded banks are Syndicate Bank, Indian Overseas Bank, IDBI Bank and Bank of India.

The rating action was driven by a sharp rise in bad loans in 2015-16 and a bleak outlook for asset quality over the next 12 months. However, the agency said that it expected these banks to remain afloat on the back of strong government support.

USDINR trade today tradingg down 1 paise at 67.17 per US dolla.

Out of 1,813 stocks traded on the NSE, 951 declined and 597 advanced today..

Top 5 Nifty Gainers: Adani Ports & Sez (2.96%), Asian Paints (2.33%), ITC Ltd (1.99%), TCS (1.72%) and Bharti Airtel (1.42%).

Top 5 Nifty Losers: Tata Motors (-0.98%), HDFC Bank (-0.62%), ICICI Bank (-0.49%), HDFC (-0.23%) and BHEL (-0.17%)

To qualify NCFM Capital Market Dealers Module certification examination, register with Intelivisto.com and buy Capital Market comprehensive question bank which features mock test, chapter-wise and full length test as per NCFM standards. It also includes performance analysis tools to analyze the performance. For more information call on: +91-9582000102.