:::LALKAR GROUP::::

Domestic indices closed with modest gains on Monday as declining COVID-19 cases and positive global stocks boosted sentiment. The Nifty managed to close above the 15,750 level after hitting a fresh record high of 15,773.45 in mid-afternoon trade. IT stocks were in demand while metal and pharma shares corrected.

The barometer index, the S&P BSE Sensex, added 228.46 points or 0.44% at 52,328.51. The Nifty 50 index gained 81.40 points or 0.52% to 15,751.65. Both the indices attained record closing high levels today.

Index major Reliance Industries (RIL) rose 1.68% to Rs 2227.30, boosting the indices higher.

The broader market outperformed the benchmark indices. The BSE Mid-Cap index rose 0.78% and the BSE Small-Cap index gained 1.38%.

The market breadth was strong. On the BSE, 2,325 shares rose and 990 shares fell. A total of 159 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 2.33% to 15.5675.

Prime Minister Narendra Modi will address the nation at 5 P.M. today.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 17,33,15,599 with 37,29,410 deaths. India reported 14,01,609 active cases of COVID-19 infection and 3,49,186 deaths while 2,71,59,180 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

India reported 1.14 lakh daily new cases in last 24 hours, lowest in 60 days. Declining trend sustained with less than two lakh daily cases since 10 successive days. Active cases decreased by 77,449 in last 24 hours.

Economy:

The gross goods and services tax (GST) revenue collected in the month of May 2021 is Rs 1,02,709 crore of which CGST is Rs 17,592 crore, SGST is Rs 22,653, IGST is Rs 53,199 crore (including Rs 26,002 crore collected on import of goods) and cess is Rs 9,265 crore (including Rs 868 crore collected on import of goods). The revenues for the month of May 2021 are 65% higher than the GST revenues in the same month last year. This would be eighth month in a row that GST revenues have crossed Rs 1 lakh crore mark.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 6.024% as compared with 6.028% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 72.8025, compared with its close of 72.99 during the previous trading session.

MCX Gold futures for 5 August 2021 settlement fell 0.25% to Rs 48,870.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.05% to 90.18.

In the commodities market, Brent crude for August 2021 settlement fell 43 cents at $71.46 a barrel. The contract rose 58 cents, or 0.81% to settle at $71.89 a barrel in the previous trading session.

Foreign Markets:

Shares in Europe and Asia advanced on Monday as investors digest the latest US labor market data and look ahead to the next inflation reading on Thursday.

China's exports in dollar terms rose 27.9% in May as compared with a year earlier, according to customs data released Monday.

U.S. stocks closed higher Friday after the May nonfarm-payrolls report showed a less-than-expected gain, leading investors to bet that the Federal Reserve will maintain its easy-money policies for longer.

The U.S. economy added 559,000 jobs in May, the Labor Department said on Friday. The number came in slightly lower than an estimated from economists, but still showed a healthy rebound in the labor market. It's an improvement from the upwardly revised 278,000 payrolls added in April.

The unemployment rate fell to 5.8% from 6.1%, which was better than the estimate. As per reports, the jobs report, while solid, is not strong enough to trigger the Federal Reserve to dial back its bond buying program.

In other developments, finance ministers from the Group of Seven over the weekend backed a U.S. proposal that calls for firms globally to pay at least 15% tax on earnings.

The main data event in the US this week will be May's Consumer Price Index (CPI) scheduled to be released Thursday.

Buzzing Indian Segment:

The Nifty IT index rose 1.11% to 27,295.65. The index has risen 1.32% in three consecutive sessions.

Mphasis (up 3.28%), Tech Mahindra (up 1.84%), Mindtree (up 1.69%), HCL Technologies (up 1.59%), TCS (up 1.38%), Wipro (up 1.25%), Oracle Financial Services Software (up 0.77%), Larsen & Toubro Infotech (up 0.76%), Coforge (up 0.57%) and Infosys (up 0.35%) advanced.

Stocks in Spotlight:

Larsen & Toubro (L&T) rose 1.28% after the company's construction arm secured 'significant' orders from clients for its various businesses. According the the company's classification, the value of the 'significant' orders lies between Rs 1,000 to Rs 2,500 crore.

Bajaj Finance tumbled 4.43% after the company estimates that its gross and net non-performing assets could be higher in Q1 and Q2 of FY22. The company said that it had a good Q4 with most financial indicators normalising to pre-COVID levels. The company ended FY2021 with GNPA of 1.8% and NNPA of 0.75%, close to pre-COVID levels. The company remained prudent on provisioning and carried an additional provision of Rs 840 crore as of 31 March 2021. However, given the severity of the second wave and the consequent lockdown across most of India for last 35 days, the NBFC offered an update of its estimated impact on the company's financials in FY2022. The company said it remains open for business across all categories aided by stable EMI bounce rates in Q1 FY22. With respect to its portfolio, the company said that the second wave has caused a marginal increase in EMI bounce rates in Q1 FY22 over Q4 FY21. Average EMI bounce rates in Q1 FY22 were approximately 1.08X of Q4 FY21. Forward flows across overdue positions were higher due to constraints on collections amidst strict lockdowns across most parts of India. As a result, the company estimates its GNPA and NNPA in Q1 and Q2 to be higher. The company estimates an incremental credit cost of Rs 1,100-1,300 crore versus planned credit cost in FY2022 on account of disruption caused by the second wave.

Hero MotoCorp rose 0.06%. The two-wheeler major announced its reinvigorated strategy for the Nigeria market and launched a new range of Hunter motorcycle that is developed especially for the region. The diversified Kewalram Chanrai Group is the exclusive distributor of Hero MotoCorp in Nigeria. Hero MotoCorp, along with Kewalram Chanrai Group, is aiming to aggressively grow its presence in Nigeria and cater to the continuous demand for great quality products at affordable prices. The new strategy involves providing customers with a comprehensive range of products across the country.

Yes Bank soared 9.76% after the bank said that its board will meet on Thursday, 10 June 2021, to consider raising funds. The bank is planning to raise funds in Indian/foreign currency by issue of debt securities including but not limited to non-convertible debentures, bonds, medium term note (MTN), etc.

Equitas Small Finance Bank fell 0.98%. The small-loan financer announced that its collection efficiency stood at 77.84% in May 2021 as against 105.16% in April 2021 and 108.51% in March 2021. The billing efficiency stood at 66.97% in May 2021 as against 84.68% in April 2021 and 91.12% in March 2021.

RBL Bank gained 0.98% after the bank received an approval of the Reserve Bank of India (RBI) for the re-appointment of Vishwavir Ahuja as the managing director (MD) and chief executive officer (CEO). The re-appointment of Vishwavir Ahuja as MD and CEO of RBL Bank is for further period of one year, with effect from 30 June 2021.

Indian Energy Exchange (IEX) jumped 2.86% after the exchange said it traded 6,540 MU of electricity volume in May 2021 achieving 9% year on year growth amidst continuation of the COVID-19 lockdowns as well the cyclonic disturbances. The company's day-ahead market traded 4,364 MU volume in the month of May 2021 with the average monthly price at Rs 2.83 per unit. The market clearing price saw a steep decline of 24% on MoM basis since average monthly price was Rs 3.70 in the month of April 2021. The sell-bids at 2.2X of the cleared volume during the month ensured ample availability of power and discovery of competitive prices thereby providing optimization opportunities to the distribution utilities.

Welspun Corp advanced 5.38%. The company said that American Petroleum Institute, USA has granted license to the company to manufacture SAWH pipes as per API Specification 5L & to apply API monogram on the pipes from company's Madhya Pradesh facility with effect from 26 May 2021.