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

The domestic equity indices traded with decent gains in early trade. The Nifty traded above the 23,400 level. Realty, IT and metal shares advances while media and FMCG shares declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, was up 288.04 points or 0.38% to 76,906.68. The Nifty 50 index rose 91.90 points or 0.39% to 23,414.85.

The Sensex and Nifty clocked an all-time high of 77,145.46 and 23,481.05 respectively in early trade.

In the broader market, the S&P BSE Mid-Cap index rose 0.49% and the S&P BSE Small-Cap index added 0.44%.

The market breadth was strong. On the BSE, 2,255 shares rose and 737 shares fell. A total of 118 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 426.63 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 233.75 crore in the Indian equity market on 12 June 2024, provisional data showed.

Economy:

India�s annual inflation rate based on all India Consumer Price Index (CPI) number came in at 4.75% for the month of May, 2024, according to government data released on Wednesday. Corresponding inflation rate for rural and urban is 5.28% and 4.15%, respectively. The Consumer Price Index (CPI) based retail inflation was 4.83% in April 2024 and 4.31% in May 2023. Inflation in the food basket was 8.69% in May, marginally down from 8.70% in April, according to the data released by the National Statistical Office (NSO).

India`s industrial production grew 5% in April this year mainly due to good show by mining and power sectors, according to official data released on Wednesday. The factory output measured in terms of the Index of Industrial Production (IIP) witnessed a growth of 4.6% in April 2023. The growth rates of the three sectors, Mining, Manufacturing and Electricity for the month of April 2024 over April 2023 are 6.7%, 3.9% and 10.2% respectively.

Stocks in Spotlight:

Nestle India added 1.34% after the company�s board approved the continuation of royalty payments at the current rate of 4.5% to the parent company.

Exide Industries rose 0.84%. The company said that it has invested Rs 74 crore in its wholly owned subsidiary, Exide Energy Solutions (EESL) by way of subscription to share capital on right basis.

Gensol Engineering was locked in upper circuit of 5% after the company received a Gujarat Urja Vikas Nigam Limited 250 MW battery energy storage project worth Rs 1,340 crore to supply electricity on an uon-demandn basis to Gujarat State�s DISCOMs during peak and off-peak hours.

Numbers to Track:

The yield on India`s 10-year benchmark federal shed 0.24% to 6.995 as compared with previous close 7.014.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.5325, compared with its close of 83.4800 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement shed 0.77% to Rs 71,418.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.13% to 104.78.

The United States 10-year bond yield added 0.59% to 4.318.

In the commodities market, Brent crude for August 2024 settlement lost 30 cents or 0.36% to $82.30 a barrel.

Global Markets:

Asian stocks traded mixed after the Federal Reserve`s cautious stance on interest rates didn`t deter investors` expectations for cuts.

The Bank of Japan`s two-day policy meeting starts today, with a decision expected on Friday. While holding rates is likely, a reduction in bond purchases is a possibility.

U.S. stocks rose on Wednesday after inflation data showed a slowdown. The core consumer price index reached its lowest level in over three years, with year-over-year prices rising 3.3% for essentials and other goods.

The Federal Reserve maintained interest rates after its policy meeting, revising its forecast to one rate cut this year and four in 2025. This shift from the previous projection of three cuts in 2024 reflects a more cautious outlook.

The S&P 500 extended its record high by 0.9%, while the Nasdaq composite climbed 1.5%, further surpassing its own record. The Dow Jones Industrial Average saw a modest decline of 0.1%.

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