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Indices come off day`s low; Nifty above 21,950; European market declines

Published on Jun 04, 2024 13:40

The frontline indices pared some losses and traded in negative terrain in afternoon trade. The Nifty traded above the 21,950 level after hitting day�s low of 21,281.45 in early afternoon trade. Barring FMCG index all the sectoral indices on the NSE were traded in red.

The Indian equity market is reacting sharply to the latest political developments, swinging from optimism to pessimism. Indices are in a free fall downward spiral in today�s trade, as trends reveal that INDIA block has put up a better fight than anticipated and that Prime Minister Narendra Modi-led NDA is unlikely to win with a huge margin. BSE Sensex and Nifty50 have plummeted almost 6%, a stark reversal from Monday`s 3% gains driven by exit poll projections of a decisive NDA victory.

At 13:30 IST, the barometer index, the S&P BSE Sensex was tumbled 4,216.94 points or 5.51% to 72,284.04. The Nifty 50 index tanked 1,294.05 points or 5.56% to 21,969.85.

The broader market underperformed the headline indices. The S&P BSE Mid-Cap index dropped 7.14% and the S&P BSE Small-Cap index slumped 5.84%.

The market breadth was skewed in favour of declines. On the BSE, 354 shares rose and 3,414 shares fell. A total of 100 shares were unchanged.

Gainers & Losers:

Hindustan Unilever (up 4.95%), Britannia Industries (up 1.93%), Heromotocorp (up 1.61%), Nestle India (up 0.91%), LTImindtree (up 0.03%) were the top nifty gainers.

Adani Ports and Special Economic Zone (APSEZ) (down 18.31%), Adani Enterprises (down 17.86%), ONGC (down 15.12%), NTPC (down 13.72), State Bank of India (SBI) (down 12.83%) were top nifty losers

Stocks in Spotlight:

MOIL tumbled 10.86%. The company said that it has recorded monthly managanese ore sales of 2.15 lakh tones in May 2024, registering a growth of 41% over May 2023.

Mahindra & Mahindra Financial Services (Mahindra Finance) declined 4.14%. The company recorded an overall disbursement of approximately Rs 4,430 crore in May 2024, delivering 7% year on year (YoY) growth.

Rail Vikas Nigam (RVNL) fell 8.53%. The firm announced that it has received a letter of acceptance (LoA) for engineering, procurement and construction (EPC) order from South Central Railway worth Rs 440 crore.

Sapphire Foods India rose 0.06% after the company said that its board will meet on Wednesday, 19 June 2024, to consider a proposal for sub-division/split of existing equity shares of the company

Biocon dropped 4.41%. The company announced that it has received approval from the U.S. Food and Drug Administration (US FDA), for its vertically integrated, complex injectable drug product, Micafungin.

Kalyan Jewellers India shed 2.34%. The company has signed definitive agreement with Rupesh Jain to acquire 15% stake in Enovate Lifestyles for total consideration of Rs 42 crore

Global Markets:

European market declined while Asian stocks traded mixed on Tuesday despite This comes as global investors grapple with the possibility that the exceptional growth of the US economy might be coming to an end. This concern stems from further signs of weakness in US manufacturing activity.

Oil prices continued their decline, with both US crude ($73.91/barrel) and Brent crude ($78/barrel) reaching four-month lows. This follows the decision by OPEC+ to gradually increase production, reducing overall output cuts.

US stocks opened June on a negative note. The Dow Jones Industrial Average fell after weak manufacturing data raised doubts about the economy`s strength. Sectors reliant on economic growth, such as banks and industrials, led the decline. Despite the Dow`s decline, the broader S&P 500 and tech-heavy Nasdaq Composite managed small gains.

The U.S. manufacturing sector showed signs of slowing, with the ISM manufacturing index measuring 48.7 in May, sending Treasury yields and the dollar lower. A reading below 50 is an indication of a contraction.

On Monday, U.S. Treasury yields fell to the lowest point in two weeks. The 2-year yield was 6 basis points lower while the 10-year yield was down 11 basis points.

On a brighter note, chipmaker Nvidia defied the market trend with a near 5% surge on Monday. This rise came after the company announced a new line of artificial intelligence chips, showcasing their commitment to staying competitive in the rapidly evolving market.

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