Indices edge higher, Nifty above 18,650 mark, breadth strong

Domestic equity barometers were trading with decent gains in early trade on buying demand in index pivotals. The Nifty traded a tad above the 18,650 mark. Barring the Nifty Realty index, all the sectoral indices on the NSE were in the green.

At 09:27 IST, the barometer index, the S&P BSE Sensex, was up 150.58 points or 0.24% to 62,943.46. The Nifty 50 index gained 56.50 points or 0.30% to 18,655.50.

In the broader market, the S&P BSE Mid-Cap index rose 0.49% while the S&P BSE Small-Cap index advanced 0.62%.

The market breadth was strong. On the BSE, 2,059 shares rose and 699 shares fell. A total of 106 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.

Foreign portfolio investors (FPIs) bought shares worth Rs 385.71 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 489.02 crore in the Indian equity market on 6 June, provisional data showed.

Economy:

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.

Stocks in Spotlight:

Wipro rose 0.84%. The IT major announced the launch of the Wipro Industry Innovation Experience for Financial Services, featuring a new suite of banking and financial services solutions built on Microsoft Cloud. The Innovation Experience will allow financial services firms to explore new solutions in an immersive 3D environment.

Torrent Power surged 7.50%. 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.

Deepak Fertilisers And Petrochemicals Corporation added 0.07%. Performance Chemiserve (Issuer) a wholly owned subsidiary of the company has raised Rs 900 crore by issue and allotment of rated, listed, unsecured, redeemable non-convertible debentures (NCDs) on private placement basis to qualified institutional buyers.

GMR Airports Infrastructure gained 0.74%. GMR Hyderabad International Airport (GHIAL) a stepdown subsidiary of GMR Airports Infrastructure (Previously known as GMR Infrastructure Limited) (GIL), announced the divestment of an 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.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper shed 0.03% to 6.975 from previous close of 6.977.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.5475, compared with its close of 82.6000 during the previous trading session.

MCX Gold futures for 4 August 2023 settlement fell 0.03% to Rs 59,965.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.01% to 104.12.

The United States 10-year bond yield declined 1.17% to 3.656.

In the commodities market, Brent crude for August 2023 settlement fell 35 cents or 0.46% to $75.94 a barrel.

Global Markets:

Most of the Asian stocks were trading higher on Wednesday as the region looks to China`s May trade data and a speech from Reserve Bank of Australia governor Philip Lowe, a day after Australia`s central bank defied expectations and raised its benchmark interest rate to its highest in 11 years.

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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