Mkt snaps 4-day losing streak; Nifty settles at 16,478.10; Dr Reddy Lab jumps 3%

Key domestic equity benchmarks ended with strong gains on Thursday, snapping a four-day losing trend. After hitting the day`s low of 16,243.85 in early trade, the Nifty marched higher as the session progressed and hit the day`s high of 16,492.80 in late trade. Trading was volatile due to expiry of weekly index options on the NSE. Buying was wide spread with pharma, healthcare and oil & gas shares rising the most. On the other hand, metals and PSU banks declined.

The S&P BSE Sensex advanced 427.79 points or 0.78% to 55,320.28. The Nifty 50 index added 121.85 points or 0.74% to 16,478.10. Both the indices fell over 1.6% in the past four sessions.

Dr Reddy`s Laboratories (up 3%), Reliance Industries (up 2.73%), Bharti Airtel (up 2.01%), Sun Pharmaceutical Industries (up 1.36%) and Tech Mahindra (up 1.31%) supported the indices today.

In the broader market, the S&P BSE Mid-Cap index rose 0.46% while the S&P BSE Small-Cap index gained 0.24%.

The market breadth was positive. On the BSE, 1,770 shares rose and 1,540 shares fell. A total of 128 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, fell 3.51% to 19.14.

Economy:

The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi, on Wednesday (8 June) approved the increase in the Minimum Support Prices (MSP) for all mandated Kharif Crops for Marketing Season 2022-23.

The highest absolute increase in MSP over previous year has been recommended for Sesamum Rs 523 per quintal, Moong Rs 480 per quintal, Sunflower seed Rs 385 per quintal, Tur, Urad and Groundnut Rs 300 per quintal, Cotton (Medium Staple) Rs 354 and Cotton (Long Staple) Rs 355.

The government said that the hike will ensure remunerative prices to the growers for their produce and to encourage crop diversification.

MSPs are intended to act as a floor price for farm commodities and serve as a benchmark rate in wholesale markets, thereby helping to avoid distress sales.

Numbers to Track:

In the foreign exchange market, the rupee tumbled against the dollar. The partially convertible rupee was hovering at 77.76, compared with its close of 77.685 during the previous trading session.

The yield on India`s 10-year benchmark federal paper rose to 7.497% as compared with 7.494% at close in the previous trading session.

MCX Gold futures for (3 June 2022) settlement fell 0.18% to Rs 50,958.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, fell 0.12% to 102.42.

In the commodities market, Brent crude for August 2022 settlement fell 7 cents or 0.06% at $ 123.51 a barrel.

Global Markets:

The Dow Jones futures were up 140 points, indicating a positive opening in the US stock market today.

Shares in Europe fell across the board on Thursday. Investors are focused on the forthcoming monetary policy meeting and decision from the ECB on Thursday. The European Central Bank is expected to signal a July rate hike at its policy meeting.

Most Asian shares declined on Thursday. China is set to announce its trade data for May later on Thursday.

Meanwhile, Shanghai will lock down a district in the south west on Saturday morning to conduct a mass Covid-19 testing drive.

US stocks dipped overnight ahead of May`s consumer price index reading slated for Friday. The S&P 500 shed 1.08% to 4,115.77. The Dow Jones Industrial Average slipped 269.24 points, or 0.81%, to 32,910.90. The Nasdaq Composite shed 0.73% to 12,086.27.

Buzzing Segment:

The Nifty Oil & Gas index rose 1.96% at 8187.55. The index fell 0.92% in the previous session.

Oil India (up 6.16%), Indraprastha Gas (up 4.62%), Bharat Petroleum Corporation (up 2.76%), Reliance Industries (up 2.74%), Hindustan Petroleum Corporation (up 2.71%), Aegis Logistics (up 2.51%), Gujarat Gas (up 2.22%), Adani Total Gas (up 2.07%), ONGC (up 1.32%) and Mahanagar Gas (up 1.23%) surged.

Stocks in Spotlight:

Wipro rose 1%. Wipro, together with ServiceNow, will contribute to Petrobras to advance its digital journey. The project aims to raise the level of service for internal users and reduce costs by modernising and aligning IT infrastructure processes with the business through a modern cloud solution focused on automation and integration.

Infosys rose 1%. Infosys will consolidate and harmonize the global service desk and workplace operations. The IT major announced a global strategic collaboration with TK Elevator, one of the world`s leading elevator companies based out of D�sseldorf, Germany. The global seven-year collaboration is an extension of the successful modernization of TK Elevator`s IT infrastructure in Europe and Africa.

Tata Power Company ended flat at Rs 233%. The company said that Tata Power Solar Systems has commissioned a 450 MW DC capacity solar plant for Brookfield Renewable India. The installation entails set up of over 800,000 modules and was completed within record 7 months timeframe. The project will produce over 800GWh of clean energy annually and will help avoid up to 600,000 tons of annual CO2 emissions. Tata Power Solar is one of India`s largest integrated solar companies and a wholly-owned subsidiary of The Tata Power Company.

BLS International Services rallied 8.50% after the company announced that it will acquire Zero Mass (ZMPL) for a total cash consideration of Rs 120 crore. Incorporated in 2007, Zero Mass Private Limited (ZMPL) has been operating as the largest Business Correspondent ("BC") network for State Bank of India ("SBI") with around 11,500 active Customer Service Points ("CSP") (about 15% of all the SBI BCs). The company has pan-India presence with CSPs located across all States and Union Territories of India. Apart from SBI, ZMPL has contracts with Utkal Grameen Bank and Karur Vysya Bank.

Crompton Greaves Consumer Electricals fell 1.22%. The company on Wednesday announced that its board will meet on 13 June 2022, to consider a proposal to raise upto Rs 925 crore via debt securities. The company`s board will consider issuing debt securities, including but not limited to secured/unsecured, rated, listed, redeemable non-convertible debentures on private placement basis.

Tanla Platforms declined 2.79%. The company said that it has entered into an exclusive partnership with Kore.ai for five countries, viz. India, United Arab Emirates, Indonesia, Vietnam, and Philippines. This partnership is a step forward in offering enterprises and brands the ability to upraise the digital experiences of their key stakeholders: customers, partners, and employees through best-in-class conversational artificial intelligence (AI) based Natural Language Processing (NLP) system.

Marine Electricals (India) advanced 2.34% after the company said that it has received an order from AdaniConnex amounting to Rs 21.75 crore. The order is for the supply of LT & HT Panels of 12MW package for AdaniConnex`s Chennai site. The delivery of the said goods has to be made over a period of three months.

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