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#RBIPolicy | Global growth and trade projections have been revised downwards

Indian economy presents a picture of strength & stability, says RBI Governor #SanjayMalhotra pic.twitter.com/5iNO0SD7TW

— CNBC-TV18 (@CNBCTV18Live) June 6, 2025

The Reserve Bank of India, led by Governor Sanjay Malhotra, has cut the interest rate, or repo rate, further by 50 basis points.

The interest rate now stands at 5.50%.

Pharma Watch: Vishal Manchanda, Research Analyst, Systematix Group 

On Dr Reddy’s Laboratories

So I have a hold on DRL as of now. So the sector itself has lot of uncertainties. DRL probably has been doing a lot in terms of putting in lot of licencing relationships with companies to kind of ensure that they continue to grow even with one of their large opportunities. So, basically Revlimid coming off next year, they are putting in pieces together to replace what they lose from Revlimid.

But while they’re putting in pieces together, we are not sure how long these efforts will take in terms of reflecting in the numbers. So one of the large opportunities we have for DRL is semaglutide launch in Canada next year. Again, it’s a large market. They are one of the four filers in Canada who are targeting to launch semaglutide there. We might see more coming through before the patent expiry. So there are a lot of uncertainties in terms of whether the innovator will give market share to the generic players or not. So we’ll have to wait and see. The market size is large, but execution is where things can go wrong. Right now the market size is about a billion dollar in Canada. But that can expand, because once prices come down in terms of volume, the opportunities can expand 20-30% or even higher.

On Divi’s Laboratories

So I have a target valuation multiple of 40 times on FY27 while on my numbers, it’s trading around 60 times FY27. So if I look at the price earning to growth ratio, it’s it should be around 2.5 times of what growth we expect.

While if I look at global peers like Lonza, Buchi which probably have the same growth rates, so their PEG ratios are around, Lonza would be around 1.3x and Buchi is at less than 1x in terms of the valuation. So that is where the disconnect is but having said that Divi’s Laboratories probably does a higher return on equity versus these guys.

On Sun Pharma

my broader rationale for the sector is we need to not be into names that have large US generics exposure. There might be a US exposure, but less of US generics exposure is what I prefer. And if I look at Sun Pharma, their US generics exposure is about 15% of the overall sales, while the peers are around 40-50% so I think US generics is where we I think there will be struggle in terms of growth.

So probably US generics will pull down the growth rate for most companies over the next three to four years. So Sun not being positioned there, and the rest of the 85% of the business of Sun can grow high single digit to mid-teens. So probably Sun can deliver higher growth in the sector versus the peer names.

On Cipla, Ajanta Pharma

Cipla and Ajanta Pharma are the other names I prefer. So again, Cipla, I think there is visibility on a pipeline as far as the US is concerned, their US exposure is also not that large like others.

They are around 30% exposed to the US, so a relatively lower exposure, maybe higher than Sun, but still lower than Zydus, Lupin or Dr Reddy’s Laboratories. So that’s one positive, and I think that domestic franchise is relatively much stronger than other companies in the large cap space, those two are the ones that I like.#JustIn | #AzadEngineering Large Trade: 48 lk shares (7.4% eq) worth ₹780 cr change hands at an avg ₹1,640/sh via block deals pic.twitter.com/YkElxBA4Iy

— CNBC-TV18 (@CNBCTV18Live) June 6, 2025

Here are a couple of stock recommendations by Siddhartha Khemka, Head-Research, Wealth Management at Motilal Oswal Financial Services

On Bajaj Finserv: Today’s block is an overhang in the last few days, but make a point to look at it from a positive perspective. We prefer the underlying business of Bajaj Finance over the holding company, Bajaj Finserv. However, both stocks move in tandem, and hence, a positive view on both stocks is warranted.

On Niva Bupa Health Insurance Company: Recently initiated coverage on Niva Bupa. Positive on the entire health insurance space, where Niva Bupa comes in the midcap space, so we have a buy rating and a target price of ₹100 on Niva Bupa.

The shares of the defence company Cochin Shipyard surged on Friday’s trade by over 7%. This marks the 4th straight session of gains for the company. In these 4 sessions, that company’s shares have risen by close to 25%, with Thursday’s session, with a 12% gain, being the biggest of all. The current price stands at ₹2,478.20.

 #CNBCTV18Market | Defence stocks higher, #CochinShipyard up over 6% pic.twitter.com/5223IOveAN

— CNBC-TV18 (@CNBCTV18Live) June 6, 2025

The shares of ZF Commercial jumped over 5% on Friday. This came to pass after a large trade saw 6 Lk shares or 3.17% in equity share,  worth ₹792 Cr change hands at ₹13,191/sh in the Block Deal Window.

 #CNBCTV18Market | Market opens flat ahead of #RBIPolicy pic.twitter.com/dbmUVTLyKi

— CNBC-TV18 (@CNBCTV18Live) June 6, 2025

According to Federation of Automobile Dealers Associations’ (FADA) May data, total vehicle retail sales stood at 22.12 lakh units, marking a 3.3% decline month-on-month (MoM) but a 5% rise year-on-year (YoY).

Two-wheeler sales came in at 16.52 lakh units, down 2.02% MoM but up 7.31% YoY.

Commercial vehicle (CV) sales dropped sharply, falling 11.25% MoM and 3.71% YoY to 75,615 units.

 #RupeeCheck | Rupee Opens At 85.87/$ Vs Thursday’s Close Of 85.80/$ pic.twitter.com/o2yF19CyMe

— CNBC-TV18 (@CNBCTV18Live) June 6, 2025

#JustIn | #ZFCommercial Large Trade: 6 lk shares (3.17% eq) worth ₹792 cr change hands at ₹13,191/sh in block deal window https://t.co/wF7D7lOKsb pic.twitter.com/t7I31IWzBU

— CNBC-TV18 (@CNBCTV18Live) June 6, 2025

Bajaj Finserv witnessed a large block trade with 2.86 crore shares (1.79% equity) changing hands for ₹5,506 crore at ₹1,925 per share.

More Information

Brokerage firm JPMorgan has downgraded shares of Tata Motors Ltd. to “neutral” from its earlier rating of “overweight” on Friday, June 6, citing new headwinds that have emerged for the passenger and commercial vehicle manufacturer.

Tesla shares crashed 14% on Thursday after what started off as a criticism of US President Donald Trump’s Big Beautiful Bill.

The market cap loss of Tesla was more than the entire market cap of India’s largest IT services company, Tata Consultancy Services (TCS), which stood at $142 billion at the end of Thursday’s close.

 #StocksToWatch | Here’s a list of stocks in focus going into trade today???? pic.twitter.com/kFlPT2NrHK

— CNBC-TV18 (@CNBCTV18Live) June 6, 2025

The Reserve Bank of India (RBI) is expected to lower the repo rate by 25 basis points (bps) at its Monetary Policy Committee (MPC) meeting today (June 6), according to a CNBC-TV18 poll. If done, this would mark the third consecutive rate cut.

RBI MPC LIVE Updates Right Here 

Jefferies On Microfinance (MFI) Sector

In Q4FY25, MFI Disbursements Fell 38% YoY but Rose 12% QoQ

AUM Fell 3% QoQ & 14% YoY

Loans Overdue For 31–180 Days Eased Slightly To 6.2% In March From 6.4% In December

Asset Quality May Take 1–2 Quarters To Normalise; MFIN 2.0 In Focus

Election-Related Stress Seen as Low Unless Rules or Waivers Change

Spandana, Fusion, CredAG Vulnerable Due To High 4+ Loan Exposure

Bandhan Bank Is Likely To Perform Better In This Environment

Amid uncertainties surrounding Trump’s tariffs and the chaos surrounding Trump and Musk’s spat, the Asian indices are trading in a mixed bag.

The Hang Seng index is trading in red with losses of around 0.44%.

The Nikkei 225 index in Japan is trading with gains of around 0.49%.

The CSI 300 index is trading with a negligible decline of around 0.026%.#CNBCTV18Market | Here’s a list of global market cues that are in focus going into trade today???? pic.twitter.com/tuY2nOaHQ7

— CNBC-TV18 (@CNBCTV18Live) June 6, 2025

Bernstein On Life Insurance

Indian life Insurers Have Rallied Strongly Over The Past Year

Bernstein Believes There Is More Upside As Valuations Remain Attractive

Growth & Margin Outlooks Are Improving, With Regulatory Concerns Easing

Top Pick: Max Financial.

Positive On SBI Life & HDFC Life.

Neutral On ICICI Prudential Life & LIC

US President Donald Trump and his former ally, billionaire Elon Musk, turned on each other, also taking to their respective social media platforms — TruthSocial and X — to publicly condemn one another on the night intervening June 5 and 6.

Nomura On Cement Sector

Cement Spreads Are Improving As Prices Trend Higher

Global Fuel Costs Remain Stable; Spot Prices Indicate A Potential Decline

Cement Prices Rose ₹2/Bag In June (MoM)

Prices Are Up ₹12/Bag In Q1FY26 (QoQ)

Nomura Is Bullish On Long-Term Demand Drivers

Top Picks Are Ambuja, UltraTech, Shree Cement & Ramco

Maintain ‘Reduce’ On Dalmia Bharat, ACC & Nuvoco

Jefferies on Reliance Industries (RIL): Buy call, target price at ₹1,650/sh. Strong FY26 outlook backed by Retail, Jio, & O2C; valuation re-rating likely.

CLSA on Bajaj Auto

O-P, TP Rs 10149

Management meets takeaways

1) BJAUT aims to gain market share in the 125cc+ segment, led by model refresh in Pulsar or through a fresh brand;

2) it plans to launch Chetak in 3kWh battery capacity, which should help gain further market share in e2Ws;

3) it is confident of growing export volumes by 15%-20% in FY26, led by rising traction in LATAM and recovering African markets;

4) BJAUT eyes a turnaround in KTM by 2026, as it aims to recover its scale and margins within a year after the recent planned restructuring and taking on a controlling stake;

5) It plans to launch an e-rickshaw with a Li-ion battery soon, in addition to its e3W offering

 CLSA on Real EstateExpect a repo rate cut of ~25 bps from ongoing MPC meeting, taking YTD cumulative rate cuts to 75 bpsExpect an additional 50-75bps rate cuts in the remainder of FY26Affordable and mid-income housing segments, which lagged luxury housing post  250bps of rate increases over CY22-23, are likely to benefit from the reversal of rate cycle.Key beneficiaries should include developers such as Sobha, Prestige, Godrej and Sunteck.REITs and large rental players such as DLF and Phoenix Mills also stand to benefit from lower interest rates on their debt and slight asset reflationUpgrade Sobha to HLD (from U-PF).

Action Packed Friday Ahead!

Asian markets trade mixed

Key Triggers:

Trump: Had “very good” call with Xi Jinping focused ‘almost entirely’ on trade

Trump: “Call resulted in a very positive conclusion for both countries”

May NFP report awaited: US likely to have added 125,000 jobs last month

U.S. Jobless Claims At 2.47 Lk Vs 2.39 Lk In The Previous Week

European Central Bank cuts interest rate By 25 bps To 2.15% From 2.40%

All eyes on RBI today: 25 bps rate cut expected

Market to track commentary on growth/any revisions in GDP forecast after 7.4% GDP growth in Q4

Fund Flow : No major FPI deluge this week

FIIs Net Sell `208.47 Cr In Equities

DIIs Net Buy `2,382.40 Cr In Equities

Stocks in Focus  

Indian Renewable Energy Development Agency (IREDA) initiates a ₹4,500 crore Qualified Institutional Placement (QIP); here’s a look at the current shareholders.

Read Full Article

ZF Commercial Vehicle Control Systems India Block: Promoter plans to offload a 3.13% stake through a block deal valued at ₹720 crore.

The floor price is fixed at ₹12,000 per share, representing a 10% discount to the current market price (CMP).

 #CNBCTV18Market | #GIFTNifty flat, indicates a muted start for the Indian market pic.twitter.com/UYVUin49cC

— CNBC-TV18 (@CNBCTV18Live) June 6, 2025

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