June 04, 2026

TOP NEWS

War update: Donald Trump recited again saying that the deal to end the war with Iran could happen over the weekend. Whereas Iran’s FM says while contact with the US has not been cut off, no progress has been made in negotiations. Yesterday in the evening there was attack on Kuwaits main airport and was blamed on Iran, but Iran claimed the strike was caused by a malfunctioning US-made Patriot missile system. The US military denied the claim. On the other front Israel and Lebanon agreed to the implementation of a ceasefire, which is contingent upon a “complete cessation of Hezbollah fire and the evacuation of all Hezbollah operatives from the South Litani Sector. The US House has passed a War Powers Resolution aimed at restricting Trump’s ability to conduct military operations without explicit congressional consent. However, the legislation faces a final hurdle at the White House, where the president holds the veto power to block the measure. Crude falls by 1% to $96.6 and Asian markets are flaring negative. Gift nifty indicates a cut down of 15 points on the index.

Atlantaa Electricals: Secured Rs 285.15 crore order from Punjab State Transmission Corporation (PSTCL) to supply 23 units of 160 MVA, 220/66 kV Power Transformers with NIFPES and spares - Strengthens market presence in Punjab & improves manufacturing capacity utilization. Positive

BHEL: signed a significant international contract with Dangote Petroleum Refinery, Nigeria. The order, valued between INR 2,000 to 2,500 Crores, is for the design, manufacturing, and supply of 8 Gas Turbine Generator packages. The scope also includes supervision of erection, commissioning, and performance tests for Dangote's petroleum refinery and polypropylene plant. The project is scheduled for completion within 26 months from the effective date of the contract. Positive

NMDC: The company raised Iron Ore Lump and Fine prices by ₹200/tonne and ₹150/tonne, respectively, to ₹5,700/tonne and ₹4,850/tonne. This does not include royalty, DMF, NMEDT, Cess, Forest Permit Fee, transit fee, GST, environmental Cess, and other taxes. The rise in iron ore costs is mainly due to a significant increase in domestic steel prices, which have risen by ~₹10,000/ton since December 25. This growing tendency should boost firm sales and profitability. Positive

JBM Auto: The company emerged as the leading player in India's electric bus segment, capturing a 49% market share in May 2026, up from 33% in April. The company recorded 157 electric bus registrations during the month, the highest in the industry.

Rajesh Exports: SEBI has passed an interim ex-parte order against Rajesh Exports and its Chairman and Managing Director, Rajesh Mehta, citing prima facie findings of financial misrepresentation, fund-routing irregularities, and non-cooperation during an ongoing investigation. According to the interim order, SEBI alleged that Rajesh Exports misrepresented consolidated revenues aggregating approximately Rs 15.15 lakh crore, representing 99.80% of its total consolidated revenue during the period from FY2020-21 to FY2024-25. SEBI has restrained Rajesh Mehta from buying, selling, or dealing in the securities of Rajesh Exports until further orders and has also directed a fresh forensic audit. Negative

Agarwal Industrial Corporation: Awarded a prestigious tender by Hindustan Petroleum Corporation Limited (HPCL) for supply of Bulk Bitumen (VG-30 & VG-40 Grades) at Mumbai and Mangalore locations aggregating to 1,30,000 MTs having estimated value amounting to ~Rs 477.50 Cr. Positive

Aurobindo Pharma: The company has inaugurated TheraNym, one of India's largest dedicated biologics contract manufacturing organisations (CMOs).The facility is intended to support MSD's supply chain for both domestic and export markets. Positive

Indiabulls shares in focus on Rs 1,000cr fundraise via convertible warrants: Indiabulls shares are likely to remain in focus after the company's board approved a fundraise of up to ₹1,000.07 crore through the issuance of convertible warrants on a preferential basis.

Jain Irrigation Systems: The company has commissioned a high-tech, industrial-scale biochar facility with an annual capacity of around 20,000 tonnes in Jalgaon, Maharashtra, along with its partners. The facility advances climate-smart agriculture, circular manufacturing, and engineered carbon removal at a commercial scale. Positive

MACRO WRAP

·       Global risk sentiment deteriorated as the US-Iran conflict showed signs of intensifying rather than de-escalating. The US military conducted strikes on an Iranian ground control station on Qeshm Island, near the Strait of Hormuz, following Iranian ballistic missile and drone attacks on Kuwait and Bahrain.  Additionally, US brokered a temporary ceasefire between Lebanon and Israel and the formal talks of negotiation will start on June-22. This series of exchanges raises doubt over the viability of any ceasefire framework in the near-term between US-Iran. Sentimentally positive for Crude oil.

·       The OECD on Wed cut its global growth outlook, warning that the US-Iran war could sharply worsen the economic picture if disruptions to energy markets and the Strait of Hormuz persist. Global growth is expected to slow to 2.8% in 2026, but in a prolonged-disruption scenario, it could slump to 2.1%. A longer-lasting shock would keep inflation higher, weaken investment and raise unemployment.  Sentimentally negative for broader markets

·       The US ISM services PMI rose to 54.5 in May (consensus: 53.8; April: 53.6), its strongest pace in three months, driven by higher business activity and new orders. ADP private payrolls data also added 122k jobs in May (consensus: 117k; April: 105k), its highest in 16 months, with job gains broad based and showing upward momentum into the summer hiring season. US factory orders surged 4.8% in Apr, the largest rise since May 2025, after an upwardly revised 1.8% advance in Mar. Orders increased 6.0% y/y in Apr. Altogether, recent US macroeconomic data continue to suggest a resilient US economy. Sentimentally positive for USD

·       Eurozone PPI increased 0.6% m/m, above expectations of 0.4% m/m. Annual producer inflation accelerated sharply from 2.0% y/y to 4.9% y/y, slightly above forecasts of 4.8% y/y. The figures come just a day after stronger-than expected Eurozone inflation data reinforced expectations for an ECB rate hike next week.

·       US FOMC: On the monetary policy front, markets are increasingly focused on the posture of new Fed Chair Kevin Warsh ahead of the 16-17 June FOMC meeting. While monetary policy will likely be left unchanged at that meeting, Warsh’s commentary is being closely watched for any signal that the Fed could turn hawkish in response to energy driven inflation.

·       The DJIA, the S&P 500, and the Nasdaq Composite Index fell 1.2%, 0.7%, and 0.9% respectively. The Eurostoxx 50 declined 0.9%. The Dollar Index rose 0.3% to 99.52. EUR-USD slipped 30 pips to 1.1600. The US 2Y yield edged up 4bp to 4.08% and the 10Y yield rose 5bp to 4.50. The German 10Y Bund yield rose 6bp to 3.04%. The UK 10Y Gilt yield rose 7bp to 4.93%. Brent crude oil prices rose 1.9% to USD97.81, extending its recent rally as Strait of Hormuz disruptions showed no sign of abating. Gold fell 1.2% to USD 4,435.

·       Data Watch: we get the initial jobless and continuing claims, non-farm productivity, final reading for Q1 unit labour costs, and Challenger job cuts. The Fed also releases Beige Book.

INVESTMENT CALL

Sector update: Q4FY26 Consumer Goods Review – Steady Q4; near-term outlook cautious

• Consumer staple companies saw healthy demand improvement led by steady rural consumption, improving urban recovery, and GST-led affordability. Geopolitical tensions hit international business performance of several companies.
• Paints companies reported volume-led recovery driven by multiple tailwinds, while alco-beverage companies continued premiumisation-led growth momentum. Margins improved y-o-y aided by benign raw material prices and operating leverage/ efficiencies.
• Going ahead, sustained inflationary pressures would hit demand and lead to near term margin volatility for staples and paint companies, while premiumisation will continue to drive strong growth for alco-beverage companies.
• Preferred picks: Allied Blenders & Distillers, Asian Paints, Marico, Nestle India and Radico Khaitan

Sector Update- Capital Goods and Power Q4FY26 result review: Data center boom in spotlight

• Our universe performed in line with expectations, marginally missing our revenue and margins estimates. Order book grew across sectors with strong order inflow pipelines for FY27. Traction across sectors like T&D, datacenter, real estate and defence remained strong. Revenue and bottomline grew ~10%/~6% y-o-y with a margins falling 70 bps to 13.51%.
• Data center theme is acting as a key catalyst, wherein companies such as Cummins India and KOEL is already benefiting from it and for all the other companies act as a major opportunity pipeline.
• Revenue growth slowed for all major power companies as power demand eased and thermal utilization was lower. Power PSUs reported a soft quarter with revenues down by 3% and PAT was higher by 23% due to deferments and tax adjustments. Power demand was weak amid a soft macro environment.
• Preferred picks: Triveni Turbines, L&T, Bharat Electronics, Cummins India, Kirloskar Oil Engines, Va tech Wabag, KEI industries, Dee Development, and Kalpataru Projects International Ltd. In power, we like NTPC, Powergrid and Tata Power

OTHER NEWS

Indian Energy Exchange (May YoY): Electricity traded volume grows 18.6% to 12,983 MU. Day-ahead market (DAM) volume increases 24.9% to 4,417 MU. Real-time electricity market volume soars 15.9% to 5,529 MU.

Hero MotoCorp: Hero MotoCorp has unveiled its first flex-fuel vehicles—the iconic Splendor+ and HF Deluxe. With this launch, India welcomes its first flex-fuel motorcycles in the 100cc segment, marking a defining milestone in the country's transition towards cleaner, self-reliant, and future-ready mobility.

Capacite Infraprojects in focus on bagging Rs 589cr order from Raymond Realty arm.