INDICES EDGE HIGHER AHEAD OF RBI POLICY, NIFTY NEAR 18,750 MARK

The frontline indices were trading near the flat line with small gains in early trade. The Nifty traded near the 18,750 mark. Metal, auto and PSU Bank stocks were in demand while realty, IT and FMCG shares declined. Trading could be volatile due to expiry of weekly index options on the NSE.

At 09:28 IST, the barometer index, the S&P BSE Sensex, was up 36.47 points or 0.06% to 63,179.43. The Nifty 50 index rose 21.80 points or 0.12% to 18,748.20.

In the broader market, the S&P BSE Mid-Cap index added 0.20% while the S&P BSE Small-Cap index gained 0.35%.

The market breadth was strong. On the BSE, 1,905 shares rose and 845 shares fell. A total of 122 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 today, 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 1,382.57 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 392.30 crore in the Indian equity market on 7 June, provisional data showed.

Monsoon Update:

India received 57% lower rainfall than average in the first week of June, weather office data showed on Wednesday, after the monsoon`s onset over its southern coast was delayed by the formation of a cyclone.

Stocks in Spotlight:

Wipro shed 0.20%. The IT major launched a managed private 5G-as-a-Service solution in partnership with Cisco. The new offering enables enterprise customers to achieve better business outcomes through the seamless integration of private 5G with their existing LAN/WAN/Cloud infrastructure.

Tata Elxsi gained 2.69%. The IT company inaugurated an Innovation Hub and nearshore engineering centre in Troy, Michigan. The new centre will support EV and green mobility, Software and Digital engineering for OEMs and Tier 1 suppliers.

Zydus Lifesciences rose 0.95%. The drug maker has received final approval from the United States Food and Drug Administration (USFDA) for Tadalafil Tablets USP, 20 mg (USRLD: Adcirca Tablets, 20 mg). Tadalafil relaxes muscles of the blood vessels and increases blood flow to particular areas of the body.

Jindal Poly Films surged 8.40%. The company entered into an agreement to acquire the 100% shareholding of JPF Netherlands Investment B.V. a Netherlands based entity, which is engaged into the business of packaging films business through its three operational wholly owned subsidiaries based out of France, Italy, and United Kingdom.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper rose 0.19% to 6.995 from previous close of 6.982.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.58, compared with its close of 82.52 during the previous trading session.

MCX Gold futures for 4 August 2023 settlement shed 0.01% to Rs 59,500.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.10% to 103.99.

The United States 10-year bond yield gained 0.27% to 3.797.

In the commodities market, Brent crude for August 2023 settlement fell 19 cents or 0.25% to $76.76 a barrel.

Global Markets:

Asian stocks were trading lower after a surprise interest rate hike by Bank of Canada revived worries that U.S. rates could stay higher for longer and the Federal Reserve could remain hawkish when it meets next week. The Bank of Canada (BoC) surprised markets on Wednesday by hiking its overnight rate to a 22-year high of 4.75%.

Japan`s economy grew an annualized 2.7% in the first quarter of the year, expanding further than earlier estimates of 1.6% made last month, government data showed, as the economy continues to see robust spending.

Overnight in the US, the three main equity indices finished mixed as the Dow Jones gained, while S&P500 and Nasdaq closed in negative territory on Wednesday as investors took profits after a recent megacap stocks run and ahead of key economic and policy events next week.

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