MARKET RECORDS ALL-TIME HIGH IN EARLY TRADE; BREADTH STRONG

The key equity indices traded with moderate gains in early trade. The Nifty traded above the 23,350 mark. Barring IT index all the other sectoral indices on the NSE were traded in green.

At 09:30 IST, the barometer index, the S&P BSE Sensex, was up 281.29 points or 0.37% to 76,974.65. The Nifty 50 index added 100.70 points or 0.43% to 23,390.85.

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 rose 0.93 % and the S&P BSE Small-Cap index added 1.14%.

The market breadth was strong. On the BSE, 2,529 shares rose and 664 shares fell. A total of 115 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 4,391.02 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,289.75 crore in the Indian equity market on 7 June 2024, provisional data showed.

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.

Stocks in Spotlight:

Adani Ports and SEZ gained 1.68% after the company recorded a 7% growth on-year in cargo handled to cross the onem million-tonne mark last fiscal.

KPI Green Energy added 1.39% after the company�s subsidiary Sun Drops Energia, approved a private placement of 1 0,66,098 equity shares to chairman and managing director Faruk G. Patel, representing 16.62% of the expanded paid-up share capital. Post-completion, Sun Drops will be a subsidiary representing 83.38% of the expanded paid-up share capital.

Numbers to Track:

The yield on India`s 10-year benchmark federal added 0.20% to 7.032 as compared with previous close 7.018.

In the foreign exchange market, the rupee is edged lower against the dollar. The partially convertible rupee was hovering at 83.4975, compared with its close of 83.4075 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement declined 0.46% to Rs 71,027.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.30% to 105.19.

The United States 10-year bond yield grew by 0.48% to 4.449.

In the commodities market, Brent crude for August 2024 settlement gained 28 cents or 0.35% to $79.90 a barrel.

Global Markets:

Most Asian stocks were trading 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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