- In an unfortunate turn of events at the India-China border, 20 soldiers were killed, after the first lethal stand-off in 45 yrs. Talks are underway. The magnitude of the issue is high and a “war fear” can bring the markets down heavily.
- Dexamethasone, a cheap and widely used steroid, is being discussed as the first drug shown to be able to save lives among COVID-19 patients in what scientists hailed as a “major breakthrough”. The US market went up after this positive news.
- HDFC is planning to raise around Rs 12,000 crore via a combination of a QIP (qualified institutional placement) and an NCD (non-convertible debenture)
- Standard Life Investments, one of the promoters of HDFC Asset Management Company (HDFC AMC) is looking to sell up to 60 lakhs shares through an offer for sale on June 17 and June 18. The sale price of the OFS shares has been fixed at Rs 2,362 apiece, a 7% discount to Tuesday’s closing price of Rs 2538, which according to analysts is a bargain buy. (You can also buy shares via offer for sale. If you are a Zerodha user, you can do it by going to https://console.zerodha.com/portfolio/corporate-action-order-window/. If you are a Upstox user, you can do it through call and trade service by calling 022-61309998 / 022-71309998)
- Yes Bank is considering a follow on public offer (FPO) to raise funds via equity. The FPO size is likely to be in the Rs 12,000-15,000 crore range and the offer price band is likely to be in the Rs 12-15 per share.
- Ashok Leyland is also considering to raise funds via Non Convertible Debentures in the range of Rs 200 crores.
- Hindustan Petroleum Corp reported a steep 99 percent drop in its net profit to Rs 27 crore for the March quarter.
What to expect today?
- Yesterday, the Indian market was highly volatile and even fell to 9750 at one point owing to the tension at the border with China.
- The US and European markets did well yesterday, after news of a possible COVID-19 vaccine and as US retail sales posted a record jump. Asian markets are mixed. SGX NIFTY is currently trading lower at 9,838, indicating a gap down opening in the Indian Market!
- NIFTY is likely to trade between 9,750 and 10,000 today. There is a support at 9750, followed by 9570 and resistance at 10,000. However, given the situation at the border, anything can happen in the market.
- Highest Call Open Interest at 10,000, followed by 10,500. Highest Put Open Interest at 9,500, followed by 9,600. These remain unchanged.
- FIIs continue to sell and DIIs continue to buy heavily
- 9500 is expected to be a strong support for NIFTY and if that is broken, the market can fall heavily