Equity benchmark indices hit their fresh all-time highs on Thursday after lower inflation data raised hopes of an interest rate cut by the Reserve Bank of India (RBI). In addition, heavy buying in capital goods, consumer durable, and industrial stocks also boosted to market sentiment.
The BSE Sensex jumped 204.33 points or 0.27 per cent to settle at a fresh record high of 76,810.90. The NSE Nifty rallied 75.95 points or 0.33 per cent to settle at a new closing high of 23,398.90. The broader market too gained 0.8 per cent with buying interest seen in capital goods, consumer durable, defense, shipbuilding, and sugar stocks. India Vix further fell to 6-week low to below 14 level indicating a stable political environment in the NDA collation.
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“Lower inflation data in both India and the US helped the market touch yet another new high. Further, though US Fed kept the interest rates unchanged and the tone was hawkish, but he did hint at one rate cut towards the end of the year,” said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd.
“Market is hopefully waiting for favourable union budget which likely to be announce next month. Sentiments got a boost post domestic inflation fell to 1-year low and domestic April IIP data came in better than expected. Market has been consolidating over last few days with positive bias and is slowly and gradually inching up. The uptrend is likely to continue supported by robust domestic macros, healthy monsoon prediction and strong earnings expectation,” he added.
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Here are the key stocks to watch on June 14:
Ambuja Cements: Adani Group’s Ambuja Cement announced to acquisition of Hyderabad-based Penna Cement Industries Ltd (PCIL) at an enterprise value of Rs 10,422 crore. According to the company, the acquisition would add 14 million tonnes per annum (mtpa) to its capacity, taking the total capacity of Adani group’s cement business (ACC-Ambuja consolidated) to 89 mtpa. Ambuja Cements will acquire a 100 per cent stake of PCIL from its existing promoter group — P Pratap Reddy and family.
Vodafone Idea: The telecom major said its board has approved the issuance of around Rs 166 crore shares at Rs 1.80 per share to raise funds up to Rs 2,458 crore on a preferential basis. Vodafone Idea will allot 102.7 crore shares amounting to Rs 1,520 crore to Nokia Solutions and Networks India Private Limited, and the remaining 63.37 crore shares amounting to Rs 938 crore to Ericsson India Private Limited, it said in a regulatory filing.
Suzlon Energy: The renewable energy company has appointed Khaitan & Company to review its corporate governance practices. The move follows the exit of independent director Marc Desaedeleer, who resigned on Saturday, June 8, citing concerns over compliance and transparency, a concern that Suzlon has denied.
Suven Pharmaceutical: The integrated contract development and manufacturing organisation (CDMO) company has executed definitive agreements to acquire 100 per cent of the shares in Hyderabad-based Sapala Organics for Rs 230 crore. The company will initially acquire 67.5 per cent of the shares through a secondary transfer from Sapala Organics’ existing shareholders.
NALCO: The Navratna company has executed a Mining Lease deed with the State Government of Odisha over an area of 697.979 hectares for Bauxite Mines in Pottangi Tehsil, Koraput District. The mines has an annual production capacity of 3.5 million tonnes and has reserves estimated at 111 million tonnes.
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