EQUITY BAROMETERS TRADE WITH SIGNIFICANT GAINS; METAL SHARES EDGE HIGHER

The domestic equity barometers continued to trade with significant gains in early afternoon trade. The Nifty traded above the 18,700 level. Metal shares witnessed buying demand for second day in a row.

At 12:29 IST, the barometer index, the S&P BSE Sensex, was up 370.03 points or 0.59% to 63,094.74. The Nifty 50 index rose 108.25 points or 0.58% to 18,709.75.

In the broader market, the S&P BSE Mid-Cap index added 0.90% while the S&P BSE Small-Cap index gained 0.88%.

The market breadth was strong. On the BSE, 2,177 shares rose and 1,290 shares fell. A total of 145 shares were unchanged.

Economy:

India`s consumer price inflation eased to a 25-month low of 4.25% in May 2023 as compared to same month last year. The inflation stood at 4.70 per cent in April, showed data released by the ministry of statistics. The consumer-price index (CPI) based inflation has remained within the Reserve Bank of India`s (RBI) tolerance band of 2-6 per cent for three months in a row.

Meanwhile, India`s Index of Industrial Production (IIP) in April rose sharply to 4.2% from 1.1% in March, mainly due to good performance by the manufacturing and mining sectors, according to official data released on Monday. With this gain, the index has recovered after growing at a five month low in March.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, fell 0.55% to 11.18. The Nifty 29 June 2023 futures were trading at 18,767.55, at a premium of 57.8 points as compared with the spot at 18,709.75.

The Nifty option chain for the 29 June 2023 expiry showed maximum Call OI of 43 lakh contracts at the 19,000 strike price. Maximum Put OI of 43.8 lakh contracts were seen at 18,000 strike price.

Buzzing Index:

The Nifty Metal index rose 1.05% to 6,140.25. The index has added 1.67% in two sessions.

APL Apollo Tubes (up 1.96%), Tata Steel (up 1.6%), Steel Authority of India (up 1.5%), NMDC (up 1.48%) and Jindal Steel & Power (up 1.46%) were the top gainers.

Among the other gainers were JSW Steel (up 1.24%), Hindalco Industries (up 1.01%), Hindustan Copper (up 0.79%), Hindustan Zinc (up 0.65%) and Adani Enterprises (up 0.39%).

On the other hand, Welspun Corp (down 0.8%), Jindal Stainless (down 0.22%) and Ratnamani Metals & Tubes (down 0.08%) moved lower.

Stocks in Spotlight:

Mahindra & Mahindra (M&M) shed 0.37%. M&M said that the total production in the month of May 2023 was 59,385 units, up by 17.35% from 50,606 units produced in the same period last year.

Spandana Sphoorty rose 2.97%. The company said that its board has approved and allotted 7,500 secured, senior, redeemable, transferable, listed, rated non-convertible debentures having face value of Rs 1 lakh each, aggregating up to Rs 75 crore, on a private placement basis.

Granules India gained 2.33%. The pharma company said that it has received US drug regulator`s approval for its abbreviated new drug application (ANDA) for Metoprolol Succinate extended-release tablets USP.

Greaves Cotton added 1.82%. The company`s e-mobility business, Greaves Electric Mobility (GEMPL) has entered into agreement with Bike Bazaar Finance to provide flexible financing options for the electric three wheeler portfolio.

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