Domestic equity barometers crawled higher after a volatile session on Tuesday, rising for the third consecutive session. The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meeting is on everyone's mind, and with expectations rising that the central bank could take a pause on rate hikes, rate-sensitive stocks saw some buying. Auto, real estate, and healthcare stocks rallied, while IT stocks slumped.
The Nifty index kicked off the day on a positive note, but its momentum fizzled out, causing it to slip into negative territory. It hit a mid-day low of 18,531.60, but gradually regained its footing, bouncing back in the late trade to end the day near the neutral line.
The barometer index, the S&P BSE Sensex rose 5.41 points or 0.01% to 62,792.88. The Nifty 50 index added 5.15 points or 0.03% to 18,599.
The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index gained 0.29% while the S&P BSE Small-Cap index advanced 0.42%.
The market breadth was positive. On the BSE, 1,924 shares rose and 1,611 shares fell. A total of 124 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 2.17% to 11.38.
The three-day meeting of the Monetary Policy Committee of the Reserve Bank of India (RBI) began today. The MPC decision will be announced by RBI Governor Shaktikanta Das on the last day of the meeting, which is Thursday, 8 June 2023.
NSE Circular:
The National Stock Exchange of India (NSE) has declared that the expiry day for Bank Nifty futures and options (F&O) will be shifted from Thursday to Friday. This change will come into effect from 7th July 2023, and all existing contracts with Thursday expiry will be revised to Friday on 6th July 2023 EOD (end of day). The first Friday expiry is scheduled for 14th July 2023.
Numbers to track:
The yield on India's 10-year benchmark federal paper shed 0.31% to 6.975 from previous close of 6.997.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.6150, compared with its close of 82.6375 during the previous trading session.
MCX Gold futures for 4 August 2023 settlement added 0.27% to Rs 60,012.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.11% to 104.11.
The United States 10-year bond yield declined 0.68% to 3.667.
In the commodities market, Brent crude for August 2023 settlement fell $1.54 or 2.01% to $75.71 a barrel.
Global Markets:
European shares declined while Asian shares ended mixed on Tuesday, with downbeat sentiment prevailing in markets across the globe. South Korea's markets were closed for a holiday.
European Central Bank President Christine Lagarde said there were signs of moderation in core inflation in the euro zone, but emphasized that it was too early to call a peak.
Manufacturing orders in Germany fell by 0.4% in April, according to the country's Federal Statistical Office. New industrial orders were down 9.9% compared to the same month in 2022. Euro Zone retail sales for the month of April 2023 will be announced today.
US stocks fell on Monday as investors weighed whether the US central bank might pause rate hikes after growth slowed in the services sector.
Stocks in Spotlight:
IT stocks slumped after after US-based EPAM Systems, Inc. announced a downward revision to its second quarter and full year 2023 financial outlook due to further deterioration in the near-term demand environment.
Persistent Systems (down 4.29%), Coforge (down 3.81%), Mphasis (down 3.53%), Tech Mahindra (down 1.92%), L&T Technology Services (down 1.85%), nfosys (down 1.82%), TCS (down 1.6%), Wipro (down 1.04%), HCL Technologies (down 0.92%) and LTIMindtree (down 0.7%) surged.
EPAM reduced its current quarter revenue outlook to a range of $1.16 billion to $1.17 billion, and earnings per share (EPS) of between $2.33 and $2.40. It had previously guided for revenue of $1.195 billion to $1.205 billion and EPS of $2.38 to $2.46.
B L Kashyap and Sons jumped 5.36% after the EPC company announced that it has secured new order aggregating to Rs 147 crore.The order comprises civil & structural work & all associated work for Nzuri Pune Knowledge Park project. The project is expected to be completed within 27 months from the date of award. The company said the current order book stood at approximately Rs 2,774 crore.
NELCO surged 13.26% after the company has entered into the agreement to acquire 9.09% stake in Piscis Networks for total consideration of Rs 99.99 lakh.
Bajaj Finserv advanced 1.12%. The company announced the launch of its mutual fund business under Bajaj Finserv Mutual Fund. The mutual fund will start rolling out products within the next 30 days, starting with Fixed Income category.
State Bank of India (SBI) shed 0.29%. The largest PSU bank said that the meeting of the board of directors of the bank is scheduled on 9 June 2023 to consider and approve raising funds during FY 24 through private placement mode by way of issuance of debt instruments (including capital instruments) in INR and /or foreign currency.
Larsen & Toubro (L&T) rose 0.36%. The company said that the Buildings and Factories (B&F) Business of L&T Construction has secured 'significant' EPC orders from a developer to construct commercial towers at two locations in Mumbai. As per L&T's classification, the value of the said contract lies between Rs 1,000 crore to Rs 2,500 crore.
SBI Cards and Payment Services added 0.43%. The board of directors of the company has approved raising of funds by way of issuance of non-convertible debentures (NCDs) aggregating to Rs. 3,000 crore in one or more tranches, on private placement basis.
Sonata Software skid 0.34% after the company announced that it has announced a strategic partnership with SAP Commerce to drive digital innovation and help businesses to accelerate their digital transformation journey. The partnership aims to offer seamless and personalized experiences to customers across various touchpoints and channels.
JK Cement gained 1.22% after the company signed share purchase agreement to acquire 100% stake in Toshali Cement (Toshali) for a total consideration of Rs 157 crore. The acquisition will help the company expand its footprint into the Eastern Region. The transaction is subject to fulfillment of certain condition presidents and may likely complete upto 6 months. Post acquitision, Toshali will become a subsidiary of the company.
IPO Update:
The initial public offer (IPO) of IKIO Lighting received bids for 2.36 crore shares as against 1.52 crore shares on offer, according to stock exchange data at 17:00 IST on Tuesday (6 June 2023). The issue was subscribed 1.55 times.
The issue opened for bidding on Tuesday (6 June 2023) and it will close on Thursday (8 June 2023). The price band is set at Rs 270-285 per share. An investor can bid for a minimum of 52 equity shares and in multiples thereof.
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