INDICES HIT RECORD HIGH; SENSEX BREACHES 75K; BROADER MKT UNDERPERFORMS

The key equity indices traded with strong gains in afternoon trade. The Nifty traded near the 22,850 mark after hitting the day�s low of 22,577.45 in early trade. Banking, financial services and auto stocks advanced while pharma, metal and FMCG shares declined. Trading could be a volatile due to the expiry of weekly index options on the NSE.

At 13:30 IST, the barometer index, the S&P BSE Sensex, gained 809.66 points or 1.10% to 75,035.69. The Nifty 50 index jumped 251.80 points or 1.11% to 22,849.60.

The Sensex and Nifty clocked an all-time high of 75,065.36 and 22,852 in early afternoon trade.

The broader market underperformed the headline indices. The S&P BSE Mid-Cap index added 0.41% and the S&P BSE Small-Cap index rose 0.18%.

The market breadth was positive. On the BSE, 1,829 shares rose and 1,917 shares fell. A total of 133 shares were unchanged.

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.

HSBC Flash India Composite Output Index rise from a final reading of 61.5 in April to 61.7, which indicated the third-strongest rate of expansion in close to 14 years. Services firms recorded a sharp increase in business activity, the steepest in four months, while factory production rose at the slowest pace since February. Nevertheless, manufacturing continued to record a stronger rate of growth than services.

HSBC Flash India Manufacturing PMI slipped from 58.8 in April to 58.4 in May, showing the weakest improvement in the health of the sector for three months but one that remained strong by historical standards.

HSBC Flash India Services PMI Business Activity Index stood at 61.4 in May as against 60.8 in April.

Latest data highlighted further signs of strength in new export orders across both the manufacturing and service sectors.

Gainers & Losers:

Adani Enterprises (up 5.45%), Axis Bank (up 3.15%), Larsen and Toubro (up 2.98%), Adani Ports and Special Economic Zone (up 2.83%) and Mahindra and Mahindra (up 2.59%) were major Nifty gainers.

Sun Pharmaceutical Industries (down 3.20%), Power Grid Corporation of India (down 2.81%), Hindalco Industries (down 2.32%) Coal India (down 1.38%), and NTPC (down 1.04%) were major Nifty losers.

Mahindra & Mahindra Financial Services rose 0.68%. The company said that it has obtained a Certificate of Registration from IRDAI (Corporate Agency License) to act as a `corporate agent (composite)` under the Insurance Act, 1938.

Stocks in Spotlight:

Gland Pharma jumped 4.42% after the company reported a consolidated net profit of Rs 192.42 crore in Q4 FY24, steeply higher than Rs 78.68 crore posted in Q4 FY23. Revenue from operations soared 95.85% to Rs 1,537.5 crore during the quarter as against Rs 785.01 crore recorded in Q4 FY23.

Power Grid Corporation of India slipped 2.84%. The company�s consolidated net profit declined 3.62% to Rs 4,166.33 crore on 2.5% fall in revenue from operations to Rs 11,978.11 crore in Q4 FY24 over Q4 FY23.

Petronet LNG shed 1.50%. The liquefied natural gas importer�s consolidated net profit jumped 24.16% to Rs 734.07 crore in Q4 FY24 as compared with Rs 591.24 crore reported in Q4 FY23. Revenue from operations declined marginally to Rs 13,793.16 crore as against Rs 13873.93 crore recorded in the same quarter previous year.

Garden Reach Shipbuilders & Engineers (GRSE) surged 15.75% after the company`s net profit doubled to Rs 111.60 crore in Q4 FY24 as compared to Rs 55.30 crore in Q4 FY23. Revenue from operations jumped 68.96% year on year (YoY) to Rs 1,015.73 crore in the quarter ended 31 March 2024.

FSN E-Commerce Ventures (Nykaa) rose 0.14%. 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.

Allcargo Logistics rose 0.78%. The company said that its wholly owned subsidiary, ECU Worldwide N.V. (Formerly known as Allcargo Beligum N.V.) has acquired 25% stake in Fair Trade for a consideration of EUR 2.9 million.

Global Markets:

European stocks advanced while Asian stocks mixed 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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