Overnight Digest: Stocks likely to be in focus on June 9

Realty index gained up to 1.88 per cent as RBI permitted rural cooperative banks to extend finance for a residential housing project to further augment credit flows to the housing sector.

On Wednesday, the benchmark indices remained under pressure post the repo rate hike. RBI hiked the key policy repo rate by 50 bps to 4.90 per cent whereas the markets were relieved, as there was no CRR hike. The repo rate hike by RBI is likely to impact the home loan borrowers, both the existing as well as the new ones. While the hike is positive for the banks and the NBFCs, it is likely to be a burden for the borrowers.  

At the close, Sensex ended 215 points lower while Nifty ended below the 16,400 level. Around 11 out of 30 Sensex stocks ended in the green. The top stocks in Sensex pack were Tata Steel, Dr Reddy's Laboratories, SBI, Titan, and Bajaj Finance whereas the Top Losers included Bharti Airtel, ITC, Reliance Industries, Asian Paints, and Axis Bank.  

While all the sectoral indices traded flat, the realty index gained up to 1.88 per cent as RBI permitted rural cooperative banks to extend finance for a residential housing project to further augment credit flows to the housing sector. The top realty stocks comprised Macrotech Developers, Sunteck Realty, Sobha, DLF, and Brigade Enterprises. In the broader markets, BSE Midcap and BSE Smallcap indices closed lower by 0.15 per cent & 0.33 per cent, respectively.  

Watch out for these stocks for Thursday's trading session: 

Bata India - The shares of Bata India traded lower for the seventh straight trading session being 3 per cent down at Rs 1,725 on Wednesday. In the last three trading sessions, the stock slipped 8 per cent after the promoter divested almost a 3 per cent stake in the company via the open market in the previous week. In comparison, BSE Sensex traded down, less than a per cent during the same period. For the past five trading sessions, the stock is trading below all its key moving averages on the daily charts. The share of Bata India closed 2.59 per cent down on Wednesday.  

Lupin - Lupin announced that it has received tentative approval from United States Food & Drug Administration (USFDA) for its abbreviated new drug application (ANDA) Ivacaftor tablets, 150 mg, to market a generic equivalent of Kalydeco® tablets, 150 mg of Vertex Pharmaceuticals Incorporated. The product is scheduled to be manufactured at Lupin’s Nagpur facility in India. Ivacaftor tablets are used to treat certain types of cystic fibrosis in adults and children four months of age & older. Ivacaftor tablets (RLD: Kalydeco® tablets) had estimated annual sales of USD 109 million in the US (IQVIA MAT March 2022). 

Biocon - The shares of Biocon hit a two-year low on Wednesday of Rs 312 per share. After the company reported a weak set of financial numbers for Q4FY22, the stock has fallen 18 per cent in the past six weeks. The company reported a 4 per cent YoY fall in the consolidated net profit in Q4FY22 whereas revenue from operations was up by 31 per cent in Q4FY22. In the past month, the share of Biocon has underperformed the benchmark index, declining 10 per cent as compared to a 1 per cent rise on Sensex.  

Ujjivan Small Finance Bank - Ujjivan Small Finance Bank has informed that its board has approved the proposal for raising funds by way of issuance of non-convertible debt securities up to Rs 1,500 crore on a private placement basis, in one or more tranches, within a period of one year from the date of seeking shareholders' approval. During Wednesday's trading session, the share of Ujjivan Small Finance Bank was trading in red and ended the trading session lower by 2.1 per cent.