Reliance, HDFC Bank. Maruti Suzuki, Nestle India, Vedanta stocks in focus on weekly F&O expiry

Domestic equity market benchmarks BSE Sensex and Nifty 50 were likely to see gap-down start on Thursday, a day of weekly F&O expiry. Nifty futures were trading at 16,434, down 73.50 points or 0.45 per cent on Singaporean Exchange. In the previous session, BSE Sensex index fell 185 points, or 0.33%, to end at 55,381 levels, while the NSE Nifty5 0 index shut shop at 16,523, down 62 points or 0.37%. Analysts say Nifty is finding resistance at higher levels with selling pressure emerging above 16600 zones for the second day. “There was lot of action in the broader market with Nifty Mid & small cap indices sharply outperforming Nifty. Persistent worries on rising interest rates, elevated crude oil prices and liquidity tightening may keep the market volatile for a while,” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services, said.

Stocks to watch

HDFC Bank: The merger of Housing Development Finance Corporation (HDFC) into HDFC Bank offers a significant opportunity for the bank to scale up and will help it double its balance sheet every five years, HDFC Bank MD and CEO Sashidhar Jagdishan said.

Navi tech: The public issue of Navi Finserv’s non-convertible debentures (NCD) was subscribed 1.40 times as of June 1, according to data available on the Bombay Stock Exchange (BSE).

Reliance Industries Ltd: Reliance Brands and Plastic Legno SPA have signed a joint venture arrangement through which RBL will acquire a 40% stake in Plastic Legno SPA’s toy manufacturing business in India. This investment by RBL serves a dual purpose, bringing in vertical integration for RBL’s toy business and helping diversify the supply chain with a long-term strategic interest in building toy manufacturing in India.

Maruti Suzuki India: Maruti Suzuki produced 1,64,859 vehicles in May, up significantly from 40,924 units produced in the same month last year. The shortage of electronic components had a minor impact on the production of vehicles during the month.

Nestle India: The FMCG major is looking to tap opportunities in new categories such as ‘healthy ageing’, ‘plant-based nutrition’ and ‘healthy snacking’ to boost growth in the country, its Chairman and Managing Director said.

Vedanta: Vedanta said a committee of its directors will meet this week to consider raising up to Rs 4,100 crore via debentures. The above issuance is pursuant to the board of directors’ resolutions passed at their meetings on May 7, 2019 and October 3, 2020.