BoFA upgrades Paytm, Spircejet surges 4 percent on FTAI Aviation partnership

Indian Markets:

• Domestic stock markets broke a four-day winning streak on Thursday, with traders profiting from an expected Reserve Bank of India (RBI) policy outcome.
• Volatility increased due to the weekly expiry of index options on the National Stock Exchange (NSE).
• The Nifty 50 index dipped below the 18,650 mark after initially peaking at 18,777.90 during mid-morning trading.
• Realty, media, and healthcare stocks experienced a drop, whereas metals shares remained resilient.
• The RBI’s Monetary Policy Committee (MPC) unanimously voted to maintain the repo rate at 6.5%.
• Other rates, including the standing deposit facility (SDF) at 6.25%, and the marginal standing facility (MSF) and the Bank Rate at 6.75%, were also held steady. The MPC is committed to a measured retraction of fiscal accommodations, aiming to gradually align inflation with targets, while supporting economic growth.

Global Markets:

• Markets in Europe and Asia were mixed on Thursday as global markets appeared hesitant and lacking in direction.
• The Bank of Canada (BoC) surprised markets on Wednesday by hiking its overnight rate to a 22-year high of 4.75%.
• Japans economy grew an annualized 2.7% in the first quarter of the year, expanding further than earlier estimates of 1.6% made last month, government data showed, as the economy continues to see robust spending.
• Overnight in the US, the three main equity indices finished mixed as investors took profits after a recent megacap stocks run.

Stocks in Spotlight:

• Fintech firms One97 Communications, Paytm’s operator, and PB Fintech were in the spotlight on June 8, as Bank of America Securities revised their ratings. One97 was upgraded to ‘buy’ with a 10% price target increase to Rs 855, propelled by anticipated strong revenue momentum. The brokerage noted Paytm’s promising potential for positive operational leverage, enhanced by limited competition. The growth of digital payments, driven by expanding digitalization, and Paytm’s substantial cash balance were other positive aspects highlighted by the firm.
• Shares of SpiceJet soared by 4% on the morning of June 8 following the low-cost airline’s announcement of a partnership with FTAI Aviation, a prominent provider of engine services. This collaboration aims to cut maintenance costs and minimize aircraft downtime. Additionally, on June 7, SpiceJet initiated special Haj flights from multiple Indian cities, including Bhopal, Gaya, Vijayawada, Aurangabad, and Srinagar.
• GATI Ltd’s shares climbed 7% in the morning trade on June 8 following an announcement of an increase in volume for May. The company registered a year-on-year growth of 1% in total volume compared to May 2022. Moreover, the company continued to show a positive trend in volumes on a month-on-month basis.

News from the IPO world🌐

• Sonalis Consumer Products IPO: Issue over subscribed on Day 1
• Spectrum Talent Management to launch Rs. 105 crore IPO on June 9th
• Valiant Lab files for draft papers with SEBI

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