MARKET OPENS ON FIRM NOTE; NIFTY ABOVE 22,700

The frontline indices traded with decent gains in early trade. The Nifty traded above the 22,700 level. Realty, PSU bank and oil & gas shares advanced while FMCG and healthcare 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 up 385.08 points or 0.48% to 74,767.24. The Nifty 50 index added 89.80 points or 0.40% to 22,710.15.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index jumped 2.06% and the S&P BSE Small-Cap index rallied 2.41%.

The market breadth was strong. On the BSE, 2,490 shares rose and 444 shares fell. A total of 100 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 5,656.26 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 4,555.08 crore in the Indian equity market on 5 June 2024, provisional data showed.

Politics:

The BJP-led National Democratic Alliance (NDA) will establish the new government on Saturday, when Narendra Modi will be inaugurated as Prime Minister for a historic third consecutive term. The BJP has obtained written support from the leaders of the Telugu Desam Party (TDP) and Janata Dal (United) (JD-U).

Stocks in Spotlight:

Bharat Heavy Electricals was locked in 10% upper circuit after the company received an order worth Rs 3,500 crore from Adani Power for setting up a thermal power project in Chhattisgarh.

Rail Vikas Nigam (RVNL) rallied 7.39% after the company has emerged as the lowest bidder for a project worth Rs 391 crore by Eastern Railway.

Torrent Pharmaceuticals shed 0.29%. The company has signed a non-exclusive patent pact with Takeda Pharmaceuticals to commercialise Vonoprazan in India.

Numbers to Track:

The yield on India`s 10-year benchmark federal shed 0.11% to 7.018 as compared with previous close 7.033.

In the foreign exchange market, the rupee is edged higher against the dollar. The partially convertible rupee was hovering at 83.4325, compared with its close of 83.4450 during the previous trading session.

MCX Gold futures for 5 June 2024 settlement gained 0.51% to Rs 72,895.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.15% to 104.11.

The United States 10-year bond yield grew 0.14% to 4.291.

In the commodities market, Brent crude for August 2024 settlement gained 29 cents or 0.37% to $78.70 a barrel.

Global Markets:

Asian stocks advanced on Thursday, buoyed by growing optimism for lower interest rates globally. The positive sentiment mirrored record highs on Wall Street`s S&P 500 and NASDAQ, fueled in part by weak US labor data. This data rekindled expectations of a Federal Reserve rate cut by September.

The US Labor Department said job openings fell to 8.059 million in April, the lowest since 2021, from a downwardly revised 8.355 million in March.

Further fueling the rally were Wednesday`s interest rate reduction by the Bank of Canada and anticipation of a similar move by the European Central Bank later that day. This confluence of events fueled hopes for a global decrease in borrowing costs.

Chip-related stocks climbed after market leader NVIDIA surged to a $3 trillion valuation on Wednesday, riding the wave of artificial intelligence (AI) enthusiasm. Positive comments from ASML Holding NV, the world`s top manufacturer of semiconductor equipment, further bolstered investor confidence in the chipmaking sector. The market anticipates that rising AI demand will translate into a global surge for semiconductors.

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