Indian benchmark indices reached a new peak on Friday, led by gains in IT, PSU Bank, and auto stocks. The market witnessed its biggest quarterly gain in two years, with the Nifty up by 10 per cent. The Sensex surged 803.14 points or 1.26 per cent to settle at a record high of 64,718.56, while the Nifty 50 settled 217 points or 1.14 per cent higher at 19,189.05.
Merger-bound HDFC and HDFC Bank were the top contributors to Nifty. Auto stocks rose ahead of monthly sales data and IT stocks rebounded following the strong macroeconomic data in the United States.
“As we enter a new week, the market has so many Domestic and global macroeconomic cues to continue its momentum. On the Domestic front, an advancement of the monsoon, which is gaining momentum, the HDFC merger impact, and monthly auto sales numbers will start being announced on 1 July 23,” said Pravesh Gour, Senior Technical Analyst, Swastika Investment Ltd.
According to Gour, the market is at an all-time high, but the momentum has just started as the Nifty hits an all-time high after 21 months of waiting.
“The overall structure is bullish with a potential target of 21000 by year-end; therefore, investors should stay invested and any decline should be taken as a buying opportunity. However, this rally is an exit opportunity for low-quality stocks,” he added.
Here are the top stocks to watch for 3 July:
HDFC and HDFC Bank: The merger of HDFC Bank and HDFC Lts will be effective from 1 July 2023. The record date for the swap ratio is 13 July. HDFC shareholders will receive 42 shares of HDFC Bank for every 25 shares of HDFC Ltd held. In addition, HDFC said that demand for home loans remains strong, as housing loans comprised 93 per cent of the individual loans disbursed in the April-June quarter.
Adani Transmission: US-based investment firm GQG Partners bought 2.13 crore shares worth Rs 1,676 crore in Adani Transmission Ltd. Fortitude Trade and Investment sold its entire stake or 3.39 crore shares in Adani Transmission for about Rs 2665 crore in bulk deals on Friday.
Vedanta: Markets regulator SEBI has imposed a penalty of Rs 30 lakh on the Anil Agarwal-led company for violating disclosure norms. The company made incorrect disclosures about its plan to foray into the semiconductor business. In addition, Vedanta will consider a potential strategic sale of its steel businesses to increase stakeholder value.
State Bank of India: Kameshwar Rao Kodavanti, has taken charge as the Chief Financial Officer (CFO) of the Bank with effect from 1 July after Charanjit Surinder Singh Attra resigned from the position.
Hero MotoCorp: The automaker reported a 10 per cent decline in overall sales in June to 4.35 lakh units. Domestic sales fell 8.7 per cent to 4.22 lakh units, while exports were 34 per cent down to 14,236 units in June. Separately, the company increased the prices of its motorcycles and scooters by 1.5 per cent with effect from 3 July 2023.
Aditya Birla Capital: The company completed fundraising of Rs 3,000 crore. It raised Rs 1,750 crore through Qualified institutional placement (QIP) at an issued price of Rs 175 per share and Rs 1,250 crore through the issue of preferential equity shares. BlackRock, Capital Group, Norges Bank, Abu Dhabi Investment Authority, Massachusetts Institute of Technology, and SBI Life were among the key investors in the fundraise.
