Indices trade with modest gains; consumer durables stocks advance
Published on Jun 05, 2023 14:33
The key equity indices traded with significant gains in mid-afternoon trade. The Nifty continued to trade above the 18,600 level. Consumer durables shares witnessed strong buying demand for four consecutive session.
At 14:25 IST, the barometer index, the S&P BSE Sensex, was up 324.50 `points or 0.52% to 62,871.61. The Nifty 50 index gained 81.75 points or 0.44% to 18,615.85.
In the broader market, the S&P BSE Mid-Cap index added 0.42% while the S&P BSE Small-Cap index rose 0.63%.
The market breadth was strong. On the BSE, 2,224 shares rose and 1,393 shares fell. A total of 172 shares were unchanged.
The Reserve Bank of India (RBI)`s six-member Monetary Policy Committee is scheduled to meet this week during 6-8 June 2023. RBI Governor Shaktikanta Das will announce the MPC decision on Thursday, 8 June 2023, the last date of the meeting.
Posting 61.2 in May, the seasonally adjusted S&P Global India Services PMI Business Activity Index highlighted a further expansion in output across the sector. Despite falling from 62.0 in April, the latest reading indicated the second strongest rate of growth in just under 13 years. Favorable demand conditions, new client wins and positive market dynamics reportedly supported output.
Meanwhile, India`s foreign exchange reserves fell for a second consecutive week and stood at a one-month low of $589.14 billion as of May 26, the Reserve Bank of India`s (RBI) data showed on Friday. That was a decrease of $4.34 billion from the previous week. For the week ended May 26, the foreign currency assets, a major component of the reserves, declined by $4.014 billion to $520.931 billion, according to the Weekly Statistical Supplement released by the RBI.
Gold reserves dropped by $225 million to $44.902 billion, the RBI said. The Special Drawing Rights (SDRs) were down by $84 million to $18.192 billion, the apex bank said. The country`s reserve position with the IMF was down by $17 million to $5.113 billion in the reporting week, the apex bank data showed.
Numbers to track:
The yield on India`s 10-year benchmark federal paper added 0.26% to 7.002 from previous close of 6.984.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.63, compared with its close of 82.39 during the previous trading session.
MCX Gold futures for 4 August 2023 settlement slipped 0.31% to Rs 59,421.
The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.21% to 104.23
The United States 10-year bond yield rose 1.58% to 3.746.
In the commodities market, Brent crude for August 2023 settlement gained $1.86 or 2.44% to $76.13 a barrel.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, on Sunday made no changes to its planned oil production cuts for this year, as coalition chair Saudi Arabia announced further voluntary declines. Oil prices rose after OPEC kingpin Saudi Arabia decided to cut production by another million barrels per day. OPEC+ also announced in a statement that it will limit combined oil production to 40.463 million barrels per day over January-December 2024.
The Nifty Consumer Durables advanced 0.77% to 26,505.20. The index jumped 2.38% has risen for four trading sessions.
Rajesh Exports (up 4.38%), Crompton Greaves Consumer Electricals (up 2.73%), Relaxo Footwears (up 2.35%), Havells India (up 1.36%) Whirlpool of India (up 1.32%) Bata India (up 1.13%), TTK Prestige (up 0.72%), V-Guard Industries (up 0.63%), Voltas (up 0.56%) and Dixon Technologies (India) (up 0.53%) advanced.
On the other hand, Orient Electric (down 1%), Titan Company (down 0.3%) and Blue Star (down 0.1%) declined.
Stocks in Spotlight:
Greaves Cotton rose 4.02% after the company said that its NBFC arm has launched a platform for electric vehicle financing.
PI Industries rose 1.40% after the company said that its wholly owned subsidiary, PI Health Sciences has completed the acquisition of 100% stake in Therachem Research Medilab (India) and Solis Pharmachem.
IIFL Finance declined 1.06%. The company announced that its board has approved the Tranche II public issue of non-convertible debentures (NCDs) for an amount upto Rs 300 crore with an option to retain oversubscription upto Rs 1,200 crore aggregating to Rs 1,500 crore.
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