Equity benchmarks trade with significant gains; European markets open lower
Published on Jun 07, 2023 13:28
The domestic equity benchmarks traded with significant gains, near the day`s high, in afternoon trade. The Nifty traded above the 18,650 mark. Oil & gas, PSU banks and healthcare stocks advanced while private bank and financials lagged behind.
At 13:26 IST, the barometer index, the S&P BSE Sensex, was up 193.04 points or 0.31% to 62,985.92. The Nifty 50 index gained 81.80 points or 0.44% to 18,680.80.
The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 0.95% while the S&P BSE Small-Cap index advanced 1.07%.
The market breadth was strong. On the BSE, 2,285 shares rose and 1,181 shares fell. A total of 150 shares were unchanged.
The three-day meeting of the Monetary Policy Committee of the Reserve Bank of India (RBI) began on Tuesday, 6 June 2023. The MPC decision will be announced by RBI Governor Shaktikanta Das on the last day of the meeting, which is Thursday, 8 June 2023. The RBI is reportedly likely to keep the policy repo rate unchanged, drawing comfort from the gradual easing of inflation.
According to World Bank report, India will remain the fastest-growing economy (in terms of both aggregate and per capita GDP) of the largest EMDEs.
Growth in India is expected to slow further to 6.3% in FY2023/24 (April-March), a 0.3% point downward revision from January. This slowdown is attributed to private consumption being constrained by high inflation and rising borrowing costs, while government consumption is impacted by fiscal consolidation.
Growth is projected to pick up slightly through FY2025/26 as inflation moves back toward the midpoint of the tolerance range and reforms payoff.
The initial public offer (IPO) of IKIO Lighting received bids for 5.82 crore shares as against 1.52 crore shares on offer, according to stock exchange data at 13:31 IST on Wednesday (7 June 2023). The issue was subscribed 3.83 times.
The issue opened for bidding on Tuesday (6 June 2023) and it will close on Thursday (8 June 2023). The price band of the IPO is fixed at Rs 270-285 per share. An investor can bid for a minimum of 52 equity shares and in multiples thereof.
Stocks in Spotlight:
Torrent Power surged 7.74%. The company said that it has signed a memorandum of understanding (MoU) with the Government of Maharashtra for development of three Pumped Storage Hydro Projects of 5,700 MW capacity in Maharashtra.
GMR Airports Infrastructure gained 2.07%. GMR Hyderabad International Airport (GHIAL) a stepdown subsidiary of the company, has divested approximately 8,18,000 sqft warehouse facility located at the Hyderabad Airport to ILP Core Ventures I PTE Limited, a step down subsidiary of Indospace Core PTE Limited, India`s largest operator of core logistics and industrial real estate vehicle.
Engineers India (EIL) added 2.59%. The company bagged service supply contracts from National Aluminium Company (NALCO) and Jindal Steel and Power Limited (JSPL) worth Rs 20.55 crore.
Poonawalla Fincorp rose 0.48%. The company said that CRISIL Ratings has assigned its `CRISIL AAA/Stable` to the non-convertible debentures and subordinated debt of the company.
European markets opened lower while their Asian peers traded mostly mixed on Wednesday.
China`s exports in May 2023 declined 7.5% year-on-year, sharply lower than the 0.4% fall expected, while imports saw a smaller fall of 4.5% year-on-year, compared to a 8% fall that was forecast. The country`s trade surplus in May was $65.81 billion, down 16.1%.
Australia` first quarter gross domestic product expanded by 2.3% year-on-year. This was the slowest rate of growth in 18 months since the country emerged from a Covid-19 lockdown in September 2021.
US stocks rose on Tuesday, helped by some advances in economically sensitive sectors, as investors awaited inflation data and the Federal Reserve`s policy meet next week.
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