INDICES EDGE LOWER; BREADTH STRONG

The frontline indices traded with minor losses in early trade. The Nifty traded below the 22,600 level. PSU Bank, Realty and bank stocks advanced while metal, healthcare and media shares declined. Trading could be a volatile due to the expiry of weekly index options on the NSE

At 09:30 IST, the barometer index, the S&P BSE Sensex, was down 48.91 points or 0.08% to 74,163.46. The Nifty 50 index lost 13.85 points or 0.06% to 22,583.95.

The broader market outperformed the headline indices.The S&P BSE Mid-Cap index rose 0.43% and the S&P BSE Small-Cap index added 0.40%.

The market breadth was strong. On the BSE, 1,862 shares rose and 994 shares fell. A total of 128 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 686.04 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 961.91 crore in the Indian equity market on 21 May 2024, provisional data showed.

Economy:

The Reserve Bank of India (RBI) announced a transfer of Rs 2.11 lakh crore to the government for the financial year 2023-24. This represents the highest surplus transfer on record by the central bank. This surplus will be reflected in the government`s accounts for the financial year 2024-25, providing a significant boost to their fiscal position.

Stocks in Spotlight:

Power Grid Corporation dropped 4.73% after the company�s consolidated net profit declined 3.62% to Rs 4166.33 crore in the quarter ended March 2024 as against Rs 4322.87 crore during the previous quarter ended March 2023. Sales declined 2.33% to Rs 11978.11 crore in the quarter ended March 2024 as against Rs 12263.72 crore during the previous quarter ended March 2023.

FSN E-Commerce Ventures (Nykaa) added 1.12% after the company reported consolidated net profit of Rs 90.71 crore in Q4 FY24, steeply higher than Rs 22.75 crore posted in Q4 FY23. Revenue from operations jumped 28% to Rs 1,667.98 crore in Q4 FY24 as compared with Rs 1,307.72 crore in Q4 FY23. During the quarter, consolidated gross merchandise value (GMV) grew 32% YoY to Rs 3,217.2 crore, as all the businesses continue to deliver superior performance.

Oil India rose 0.28%. The company has signed a new long-term definitive agreement for the transportation of additional petroleum products through OIL`s Numaligarh-Siliguri Product Pipeline following the commissioning of the Numaligarh Refinery Expansion Project.

Numbers to Track:

MCX Gold futures for 5 June 2024 settlement shed 0.64% to Rs 72,585.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.07% to 104.86.

The United States 10-year bond yield fell 0.18% to 4.427.

In the commodities market, Brent crude for July 2024 settlement lost 33 cents or 0.40% to $ 81.53 a barrel.

Global Markets:

Most of the Asian stocks advanced on Thursday despite central banks` cautious stance on easing interest rates due to persistent inflation. Investor anxiety was heightened with China conducting military drills near Taiwan. Japan`s manufacturing sector showed a positive surprise, expanding to 50.5 in May.

Meanwhile, US stocks dipped after the Fed minutes revealed a gradual approach to curbing inflation, though Nvidia`s upbeat revenue forecast lifted its share price.

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