MONSOON MAGIC: NIFTY, SENSEX SCALE NEW PEAKS; INFY JUMPS OVER 3%

Published on Jun 30, 2023 17:29

Domestic equity barometers surged to record high levels on Friday. This was fueled by positive global cues and the progression of the southwest monsoon, both of which positively influenced investor sentiment. The global market was uplifted by a favorable revision in Q1 GDP, a decrease in jobless claims, and the successful outcome of the Fed`s US bank stress test.

The barometer index, the S&P BSE Sensex soared 803.14 points or 1.26% to 64,718.56. The Nifty 50 index climbed 216.95 points or 1.14% to 19,189.05. Both the indices attained record closing levels.

The Nifty and the Sensex hit all-time highs of 19,201.70 and 64,768.58, respectively, today. Further, the Nifty Bank index also registered its fresh record high at 44,787.10. IT, auto and PSU banks stocks were in demand.

Infosys (up 3.21%), TCS (up 2.67%) and HDFC Bank (up 1.51%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index rose 0.67% while the S&P BSE Small-Cap index gained 0.51%.

The market breadth was positive. On the BSE, 1,952 shares rose and 1,557 shares fell. A total of 139 shares were unchanged.

Numbers to track:

The yield on India`s 10-year benchmark federal paper advanced 0.72% to 7.107 from previous close of 7.056.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.0400, compared with its close of 82.0350 during the previous trading session.

MCX Gold futures for 4 August 2023 settlement declined 0.14% to Rs 57,930.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.08% to 103.42

The United States 10-year bond yield rose 0.60% to 3.874.

In the commodities market, Brent crude for August 2023 settlement gained 41 cents or 0.55% to $74.75 a barrel.

Global Markets:

The Dow Jones index futures were up 89 points, indicating a positive opening in US stocks today.

European shares advanced on Friday after a set of strong U.S. economic data bolstered the view that the Federal Reserve will likely keep interest rates higher for longer.

Germany`s consumer price inflation unexpectedly increased to 6.4% (y-o-y) in June, rising from the 14-month low of 6.1% recorded in May, showed preliminary data.

In contrast, most Asian stocks declined on Friday, with Chinese stocks leading the losses.

China`s factory activity in June contracted for a third month, with the official manufacturing purchasing managers` index (PMI) coming in at 49.0. This was below the previous reading of 49.2 and below the 50 level that separates contraction from expansion. German consumer price inflation unexpectedly increased to 6.4% (y-o-y) in June, rising from the 14-month low of 6.1% recorded in May.

US stocks rallied on Thursday, led by banking stocks following better-than-expected data that raised hopes the US economy could avert a recession. Large US banks passed a Federal Reserve stress test, generating speculation of potential dividend hikes and share buybacks.

The US economy grew at an annualised 2% (q-o-q) in Q1 2023, well above the previous estimate of 1.3%.

US initial jobless claims fell by 26,000 to 239,000 for the week ended June 24th, marking the sharpest drop since October 2021 and below market estimates of 265,000.

Fed Chair Jerome Powell signaled on Thursday that the U.S. central bank was likely to resume its monetary tightening campaign after a break earlier this month.

Stocks in Spotlight:

Multi Commodity Exchange of India (MCX) tumbled 8.65% while 63 Moons Technologies jumped 12.66%. MCX has announced the extension of its software support services contract with 63 Moons Technologies for a period of six months, starting from 1 July 2023. The deal, worth Rs 125 crore per quarter, is aimed at ensuring a seamless transition to the new Commodity Derivatives Platform.

This marks the third time that 63 Moons has extended its software support services to MCX. The software support and maintenance agreement between MCX and 63 Moons, which ended in September 2022, was extended until June 2023. TCS, the vendor selected to develop the new commodity derivative platform, has faced delays due to complexities in platform development and integration.

Shilpa Medicare jumped 15.60% after the company`s a wholly owned subsidiary; Shilpa Biologicals received the marketing authorization permission for its Adalimumab 40 mg/0.4mL injection in prefilled syringe (PFS).

JK Tyre Industries surged 14.20% after the company announced the completion of the first phase of capacity expansion of their manufacturing facility located in Banmore, Madhya Pradesh (MP). The company has planned a two-phased expansion at its existing Banmore facility to cater to the increasing demand for passenger car radial (PCR) tyres with an investment of about Rs 1,000 crore.

ICICI Bank shed 0.33% while ICICI Securities fell 1.03%. The board of ICICI Bank on 29 June 2023 approved a draft scheme to delist ICICI Securities` equity shares. The delisting is contingent on the approval of various regulatory bodies, including the Securities and Exchange Board of India (SEBI). Under the proposed scheme, public shareholders of ICICI Securities will receive 67 equity shares of ICICI Bank for every 100 equity shares they currently hold.

Power Grid Corporation of India gained 1.98%. The power transmission company on Wednesday announced that its committee of directors on investment on projects has accorded investment approvals for three projects aggregating to Rs 388.94 crore.

IndusInd Bank rallied 3.08% after the private lender said that its board has appointed Vivek Bajpeyi as the chief risk officer of the bank with effect from 28 June 2023 till 30 September 2025.

Bharat Petroleum Corporation (BPCL) fell 0.15%. BPCL on Wednesday announced that its board has approved the proposal for raising capital up to Rs 18,000 crore through rights issue of equity shares.

Canara Bank rose 1.70%. The bank`s board approved the capital raising plan of the bank for the financial year 2023-24 amounting up to Rs 7,500 crore by way of debt instruments.

Tata Communications rose 1.13%. The company on Wednesday announced that it will acquire US-based and New York Stock Exchange-listed Kaleyra Inc for $100 million in an all-cash deal.

HDFC Life Insurance Company lost 0.27%. The company announced that it has acquired 613 equity shares of Xanadu Realty (Xanadu) representing 5.46% of its paid‐up equity share capital upon conversion of compulsorily convertible debentures held by the life insurer.

SBI Life Insurance Company added 0.63%. The company said that its board approved re-appointment of Mahesh Kumar Sharma as a managing director (MD) & chief executive officer (CEO) of the company.

Aurobindo Pharma declined 1.32%. The pharmaceutical company said that its step-down wholly owned subsidiary, Auro PR, Puerto Rico is undertaking a restructuring of its facility to enhance production volume.

IPO Updates:

The initial public offer (IPO) of PKH Ventures received bids for 15.59 lakh shares as against 2.56 crore shares on offer, according to stock exchange data at 17:00 IST on Friday (30 June 2023). The issue was subscribed 6%.

The issue opened for bidding on Friday (30 June 2023) and it will close on Tuesday (4 July 2023). The price band of the IPO is fixed at Rs 140-148 per share. An investor can bid for a minimum of 100 equity shares and in multiples thereof.

The IPO of Cyient DLM received bids for 89.73 crore shares as against 1.33 crore shares on offer, according to stock exchange data at 17:00 IST on Friday (30 June 2023). The issue was subscribed 67.30 times.

The issue opened for bidding on Tuesday (27 June 2023) and it will close on Friday (30 June 2023). The price band of the IPO is fixed at Rs 250 -265 per share. An investor can bid for a minimum of 56 equity shares and in multiples thereof.

The IPO of Ideaforge Technology received bids for 49.30 crore shares as against 46.48 lakh shares on offer, according to stock exchange data at 17:00 IST on Friday (30 June 2023). The issue was subscribed 106.05 times.

The issue opened for bidding on Monday (26 June 2023) and it will close on Friday (30 June 2023). The price band of the IPO is fixed at Rs 638 -672 per share. An investor can bid for a minimum of 22 equity shares and in multiples thereof.