June 11th 2024 Stock Market analysis

Indian shares remain muted ahead of Fed decision, inflation data

Indian shares closed flat on Tuesday after a significant rise last week, as investors shifted their attention from election-related news to upcoming inflation data and the US Federal Reserve's policy decision later this week. The NSE Nifty 50 index edged up by 0.02% to 23,264.85, while the S&P BSE Sensex dipped by 0.04% to 76,456.59. Seven of the 13 major sectors posted gains, with the oil and gas sector (.NIFOILGAS) leading at a 1.33% increase. Following a 3.4% rise last week, the Nifty 50 has declined by about 0.1% this week, remaining within a narrow 200-point range over the past two sessions.

Technical Outlook on 12th June

Nifty may expect an immediate support near 23173 then 23082 and resistances are 23355 then 23446. Now the nifty is looking at a mixed trade.

Bank Nifty may expect an immediate support near 49486 then 49267 and resistances are  49924 then 50143. Now the bank nifty is looking at a mixed trade.

Derivative Outlook on 12th June

PCR Analysis: Nifty PCR-OI has increased with nifty has flat positive which shows mild PUT WRITING.

Open Interest Analysis: Nifty future June contract OI has decreased with positive close which shows Short Covering.

Cost of Carry Analysis: Nifty June month contract has ended in low compare with July contract and high range compare with previous sessions which indicates a mixed trade.

India VIX Analysis: India VIX has closed at 14.77 vs 16.40 (DoD) basis which shows decrease in volatility.

State Bank of India to Raise Up to $3 Billion in Debt for FY25

On June 11, the State Bank of India (SBI), the country's largest lender, announced that its board has approved raising up to $3 billion through debt in the current financial year. The state-run bank plans to raise the funds in one or more tranches via a public offer or private placement of senior unsecured notes, denominated in US dollars or another major foreign currency.

"The Executive Committee of the Central Board, at its meeting held today, i.e., June 11, 2024, has approved examining the status and deciding on long-term fund raising in single or multiple tranches of up to $3 billion through a public offer and/or private placement of senior unsecured notes in US dollars or any other major foreign currency during FY2024-25," SBI stated in a stock exchange filing.

The Mumbai-based lender did not specify the intended use of the proceeds.

Indian banks are bolstering their capital base to meet the increasing demand for loans. Several public sector banks, including Canara Bank, Punjab and Sind Bank, and Punjab National Bank, also plan to raise funds via debt this fiscal year.

In January, SBI raised Rs 5,000 crore by issuing Basel III-compliant additional tier-I perpetual bonds. Additionally, the bank is open to raising equity capital to support growth, Chairman Dinesh Kumar Khara mentioned last month. SBI's shares rose 0.8 percent on Tuesday, bringing their total gain to 30.5 percent for the year.

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