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Stocks in News

• INDIAN OVERSEAS BANK: The state-owned bank announced a systemic revision in its Marginal Cost of Funds Based Lending Rate (MCLR).

• DR LAL PATHLAB: The diagnostics chain has incorporated a new subsidiary in Dubai, UAE, to expand its international footprint across the Middle East.

• ASHOKA BUILDCON: The company's stake in its arm APTPL has reduced from 59% to 39.33%. Consequently, APTPL ceases to be a subsidiary and becomes an associate company.

• ACME SOLAR: Its subsidiary, ACME Sun Power Pvt, commissioned a 33.3 MW Battery Energy Storage System (BESS) project in Rajasthan to support grid storage architecture.

• NTPC GREEN ENERGY: ONGC-NTPC JV commissioned a 50 MW solar unit in Rajasthan, raising its total operational solar capacity to 250 MW.

• YATHART HOSPITAL: The company is strategically transferring its Gurugram hospital asset to a subsidiary for a consideration of Rs 100 crore to streamline localized operations.

• POWER GRID: Declared lowest bidder for a key Andhra Pradesh transmission project involving a 765/400kV GIS substation to strengthen grid infrastructure.

• JSW ENERGY: Tidong Hydro Project commissioned ahead of schedule, adding 150 MW capacity and taking total installed capacity to ~13.9 GW under a long-term PPA at ?5.57/unit.

• SEPC: Secured substantial Letters of Acceptance (LoAs) worth Rs 673 crore from SAIL's IISCO Steel Plant (ISP) located in Burnpur.

• KIMS: Board approves ?600 crore preferential warrant issue to promoters to fund brownfield hospital expansion plans.

• ELECTROSTEEL CASTING: Announced a temporary operational shutdown at its main Mini Blast Furnace (MBF) production unit for a duration of 10 days to undertake necessary, routine asset-integrity and preventative maintenance schedules.

Economic News

• RBI's New Norms May Drain ?50,000–60,000 Cr Liquidity, Pressuring Market Leverage and Derivatives Activity: RBI's new lending norms for liquidity providers, effective July 1, are expected to withdraw ?50,000–60,000 crore of market liquidity and reduce leverage among brokers and market intermediaries. The requirement for 100% collateral-backed funding and higher haircuts on equity collateral could increase funding costs, particularly impacting derivatives traders and liquidity providers. While cash market participants may face a relatively lower impact due to support from institutional investors, the move is likely to dampen derivatives volumes and make liquidity provision more capital-intensive.

Global News

• U.S. consumer sentiment rebounds on lower fuel prices, but inflation fears continue to weigh on outlook: U.S. consumer sentiment improved in June from record lows as lower gasoline prices and a strong labor market boosted household confidence, particularly among lower-income consumers. However, inflation remains elevated due to the prolonged Iran conflict, keeping consumers worried about rising living costs and reducing expectations of near-term Federal Reserve rate cuts despite a slight easing in inflation expectations.

Government Security Market:

* The Inter-bank call money rate traded in the range of 4.60%- 5.35% on Friday ended at 4.85%.

* The 10 year benchmark (6.94% GS 2036) closed at 6.8957% on Friday Vs 6.9240% on Thursday.

Global Debt Market:

U.S. Treasury’ retreated further on Friday after falling sharply the previous session, while global bond yields and oil prices also plunged, as traders monitor the growing prospect of a resolution to the Middle East war. The 10-year Treasury note yield the main benchmark for mortgages, auto loans and credit card debt was down more than 2 basis points, at 4.4434%. The yield on the 2-year Treasury note, which typically moves in line with short-term Federal Reserve interest rate decisions, fell more than 2 basis points to 4.0473%. The 30-year Treasury yield, which tends to track geopolitical events, dropped 1 basis point to 4.9414%. On Friday, Iran’s state-run Mehr News Agency reported details of the draft 14-point memorandum of understanding between the U.S. and Iran. The proposed deal includes a reopening of the Strait of Hormuz “with Iranian agreements”, the lifting of oil sanctions and an end to all hostilities in the region, including Lebanon. That followed comments from President Donald Trump on Thursday that Washington had made a “settlement”, subject to a “finalization of documents.” Borrowing costs fell sharply on Thursday, with 10-year Treasury yields down as much as 8 basis points, with yields on the 2-year and 30-year also firmly lower, after Trump called off plans for fresh strikes against Iran. The prospect of a peace deal also pulled energy prices sharply lower and sent global bond yields tumbling. U.S. crude oil futures fell 4.5% to $83.79, while Brent crude, the international price benchmark, dipped 4.3% to $86.47. Yields on 10-year U.K. government bonds — also known as Gilts, the key barometer for British government borrowing — were more than 8 basis points lower, at 4.823%. The yield on 10-year German bund, seen as an indicator of euro zone debt, slipped more than 5 basis points to 2.9686%

10 Year Benchmark Technical View :

The 10 year Benchmark (6.94% GS 2036) yield likely to move in the range of 6.8825% to 6.90% level on Monday.

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