INDICES TRADE WITH MINOR GAINS; MEDIA SHARES RALLY FOR 4TH DAY

The headline equity indices continued to trade with small gains in mid-morning trade. The Nifty traded above the 23,350 mark. Media shares advanced in the four consecutive trading sessions.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 185.47 points or 0.24% to 76,878.83. The Nifty 50 index rose 69.85 points or 0.29% to 23,358.70.

The Sensex and Nifty clocked an all-time high of 77,079.04 and 23,411.90 in early trade.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index added 0.78% and the S&P BSE Small-Cap index gained 1.18%.

The market breadth was strong. On the BSE, 2,672 shares rose and 1,127 shares fell. A total of 153 shares were unchanged.

Economy:

India�s forex reserves jumped $4.837 billion to a new all-time high of $651.51 billion for the week ended May 31, according to the latest RBI data.

For the week ended May 31, foreign currency assets, a major component of the reserves, increased by $5.065.51 billion to $572.564 billion.

Gold reserves fell by $212 million to $56.501 billion during the week ended May 31. The special drawing rights (SDRs) were down $17 million to $18.118 billion.

India�s reserve position with the IMF was up $1 million to $4.326 billion in the reporting week, the apex bank data showed.

IPO Update:

The initial public offer (IPO) of Le Travenues Technology received 2,12,53,932 bids for shares as against 4,37,69,494 shares on offer, according to stock exchange data at 11.30 IST on Monday (10 June 2024). The issue was subscribed 0.49 times.

The issue opened for bidding on Monday (10 June 2024) and it will close on Wednesday (12 June 2024). The price band of the IPO is fixed at Rs 88 to 93 per share. An investor can bid for a minimum of 161 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Media index gained 1.66% to 2,003.40. The index rallied 11.17% in the four consecutive trading sessions.

Zee Entertainment Enterprises (up 2.8%), PVR Inox (up 1.54%), Hathway Cable & Datacom (up 1.5%), Sun TV Network (up 1.11%), Saregama India (up 0.87%), TV18 Broadcast (up 0.81%), Tips Industries (up 0.42%), Dish TV India (up 0.33%), Network 18 Media & Investments (up 0.09%) edged higher.

Stocks in Spotlight:

PTC India declined 2.34% after the company�s consolidated net profit from continuing operations slipped 28.04% to Rs 91.32 crore in Q4 FY24 from Rs 126.91 crore reported in Q4 FY23. Revenue from operations declined 2.36% year on year to Rs 3,371.74 crore in the quarter ended 31 March 2024.

JSW Steel shed 0.58%. The company�s consolidated crude steel production decreased 4% to 20.98 lakh tonnes in May 2024 as against 21.78 lakh tonnes recorded in May 2023.

Global Markets:

Most Asian stocks traded lower on Monday. This shift comes after Friday`s U.S. jobs report, which surprised analysts. The report indicated a stronger-than-expected labor market, with significant job creation and accelerating wage growth. This data has led investors to scale back their expectations of Federal Reserve interest rate cuts happening later in 2024.

The robust U.S. jobs data, released by the Bureau of Labor Statistics (BLS) on Friday, showed the creation of 272,000 new jobs in May. This surpassed analyst forecasts and came after a revised figure of 165,000 jobs added in April. Additionally, average hourly earnings rose 0.4% in May, following a 0.2% increase in April. Year-on-year wage growth climbed to 4.1% in May, compared to the upwardly revised 4.0% reported in April. Generally, wage growth within a 3.0% to 3.5% range aligns with the Fed`s 2% inflation target. The average workweek remained steady at 34.3 hours.

Japan`s revised GDP data for the first quarter (ending March 31, 2024) revealed a contraction of 1.8% year-on-year. This is an improvement from the initial estimate of a 2.0% decline. However, it still signifies a significant slowdown compared to the 0.4% growth observed in the previous quarter. On a quarterly basis, Japan`s GDP fell 0.5%, matching the initial estimate.

Meanwhile, a recent snap election call in France has injected broader political concerns into the market, causing the euro to weaken.

U.S. markets closed strong on Friday. The S&P 500 reached a new intraday record high. The Dow Jones Industrial Average gained 0.29%, and the Nasdaq Composite rose 2.38%. Notably, Nvidia`s stock price jumped 10% last week, driven by continued investor enthusiasm for the artificial intelligence leader. This surge pushed Nvidia`s market capitalization past the $3 trillion mark.

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