The key equity indices ended with moderate losses after a volatile session on Thursday. The Nifty closed below the 18,500 level after hitting day's high of 18,580.30 in early trade. Realty, pharma, healthcare stocks ended with decent gains while bank, private bank, financial services shares declined. Trading was volatile due to expiry of weekly index options on the NSE. As per provisional closing data, the barometer index, the S&P BSE Sensex, fell 193.70 points or 0.31% at 62,428.54. The Nifty 50 index fell 46.65 points or 0.25 % at 18,487.75.
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.11% while the S&P BSE Small-Cap index rose 61%.
The market breadth was positive On the BSE, 2090 shares rose and 1444 shares fell. A total of 127 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 3.13% to 11.60.
Economy:
The Central government's NSO office on Wednesday released India's Gross Domestic Product (GDP) data for the January-March quarter (Q4FY2023). In Q4FY23, GDP growth was at 6.1% compared to 4.4% growth rate witnessed in Q3. Overall, the growth in FY23 fiscal is better-than-expected to 7.2%. However, the FY23 growth has slowed down from 9.5% growth in FY22.
The government's fiscal deficit narrowed to Rs 17.33 trillion or 6.4% of GDP for the financial year ended March 2023 compared with the previous financial year, on the back of higher tax receipts. Official data released on Wednesday showed that the deficit was lower than the revised estimate of Rs 17.55 trillion given in the Union Budget 2023.
The seasonally adjusted S&P Global India Manufacturing Purchasing Managers' Index (PMI) rose to 58.7 in May from 57.2 in April, indicating the strongest improvement in the health of the sector since October 2020. The factory orders increased for the twenty-third month running in May, but also to the greatest extent since January 2021.
Buzzing Index:
The Nifty Bank index declined 0.87% to 43,743.60. The index slipped 1.56 % in two trading sessions.
Kotak Mahindra Bank (down 4.07%), City Union Bank (down 1.32%), ICICI Bank (down 1.23%), HDFC Bank (down 0.24%) declined.
On the other hand, RBL Bank (up 4.1%), IDFC First Bank (up 1.4%) and Axis Bank (up 0.45%) advanced.
May auto sales impact:
Maruti Suzuki India declined 0.35%. The car manufacturer announced that its total sales in the month of May 2023 aggregated to 178,083 units, which is higher by 10.3% as compared with 161,413 units sold in the same period last year.
Mahindra & Mahindra fell 0.03%. The company's overall auto sales for the month of May 2023 stood at 61,415 vehicles, up by 14% from 53,726 sold in same period last year.
Ashok Leyland rose 0.51%.The commercial vehicles maker reported marginal decline in total vehicle sales to 13,134 units in May 2023 from 13,273 units in May 2022.
Escorts Kubota rose 1.25%. The tractor maker said that its Agri Machinery business had sold 9,167 tractors in May 2023, its highest ever May sales recording growth of 8.9% as against 8,421 tractors sold in May 2022.
Steel Strips Wheels gained 2.40%. The company said that it had achieved a net turnover of Rs 357.27 crore in May 2023 as against Rs 325.26 crore in May 2022, recording a growth of 9.84% on YoY basis.
VST Tillers Tractors shed 0.38%. The total sales increased 3.53% to 3,756 units in May 2023 from 3,628 units sold in May 2022.
Stocks in Spotlight:
Tata Motors rose 1.49%. The company has commenced a tender offer inviting the holders of the ECB bonds to offer to sell for cash to the company the ECB bonds held by such bond holders, subject to the terms and conditions set out in the tender offer memorandum dated 31 May 2023, issued by the company.
Coal India (CIL) fell 4.54% after the offer for sale (OFS) opened for non-retail investors today, 1 June 2023. Through the OFS, the Government of India proposes to sell up to 9,24,40,924 equity shares (representing 1.5% stake), with an option to sell an additional 1.5% stake or 9,24,40,924 equity shares in case of oversubscription. The floor price for the sale has been set at Rs 225, a 6.72% discount to the stock's closing price of Rs 241.20 on Wednesday, 31 May 2023. Retail investors and non-retail investors, who choose to carry forward their bids, can participate in the issue on June 2.
HDFC Life Insurance Company shed 1.56%. abrdn (Mauritius Holdings) 2006 (abrdn), one of the promoters of the company, has intimated that it has undertaken a sale of 3,56,94,105 equity shares (representing approximately 1.66% stake) on 31 May 2023, to various investors through the screen based trading system of the stock exchanges at an average price of Rs. 570.60 per equity share (including brokerage and commission).
Laurus Labs added 2.92%. The company said that it has signed definitive agreements to acquire additional stake of 7.24% in Immunoadoptive Cell Therapy Private Limited (lmmunoACT), an advanced cell and gene therapy company for a cash consideration of Rs.80 crore. Post the completion of the deal, Laurus Labs' stake in ImmunoACT will increase to 33.86% (on fully diluted basis).
UCO Bank jumped 5.55% after the Central Government appointed Ashwani Kumar as managing director & chief executive officer (MD & CEO) of the bank for a period of three years.
NCC rose 3.06% after the company announced that it had secured new orders worth Rs 2088 crore in May 2023.
Finolex Industries declined 2.87% after Anil V. Whabi retired on completion of his tenure as managing director (MD) of the company on close of business hours on 31 May 2023.
South Indian Bank rallied 9.57% after the bank said its board has approved a panel of candidates for the position of managing director and chief executive officer (MD & CEO).
Global Markets:
European markets advanced while Asian peers ended mostly higher on Thursday. Investors remained cautious amid the passage of US debt ceiling bill and the release of manufacturing data of several Asian countries, including China. Investors remained cautious amid the passage of US debt ceiling bill and the release of manufacturing data of several Asian countries, including China.
US stocks slipped on Wednesday as investors kept an eye on the federal debt ceiling debate in Washington in the final trading day of May.
The House of Representatives passed a bill to suspend the $31.4 trillion debt ceiling on Wednesday, with majority support from both Democrats and Republicans, avoiding a catastrophic default. The Republican-controlled House voted 314-117 to send the legislation to the Senate, which must enact the measure and get it to President Joe Biden's desk.
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