NIFTY HOVERS ABOVE 23,300; EUROPEAN MRKT DECLINE

The frontline indices continued to trade with minor gains in afternoon trade. The Nifty hovered above the 23,300 level after hitting the day�s low of 23,233.05 in morning trade. Media, PSU bank and realty shares advanced while IT and auto shares declined.

At 13:30 IST, the barometer index, the S&P BSE Sensex, was up 43.11 points or 0.06% to 76,736.47. The Nifty 50 index rose 48.90 points or 0.21% to 23,339.05.

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 added 0.67% and the S&P BSE Small-Cap index gained 1.16%.

The market breadth was strong. On the BSE, 2,682 shares rose and 1,228 shares fell. A total of 153 shares were unchanged.

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.

Gainers & Losers:

Ultratech Cement (up 3.79%), Grasim Industries (up 3.37%), Hero MotoCorp (up 3.12%), Power Grid Corporation of India (up 2.99%) and Nestle India (up 2.39%) were major Nifty gainers.

Tech Mahindra (down 2.82%), Infosys (down 2.13%), Wipro (down 1.76%), LTIMindtree (down 1.49%) and Mahindra & Mahindra (down 1.48%) were major Nifty losers.

Stocks in Spotlight:

Wardwizard Innovations & Mobility (WIML) was locked in 20% upper circuit after the company announced that it has secured a significant order worth $1.29 billion from Beulah International Development Corporation.

Raymond jumped 5.76% after its real estate division gets selected as the preferred developer for redevelopment of MIG VI CHS located in Bandra (East), Mumbai.

Artson Engineering was locked in 5% upper circuit after the company announced that it has bagged a contract worth Rs 126.15 crore from Guwahati International Airport Limited.

Railtel Corporation of India advanced 2.44% after the firm received work order from National Informatics Centre Services Incorporated worth Rs 81.45 crore.

JSW Steel declined 0.58% after the company�s consolidated crude steel production decreased 4% to 20.98 lakh tonnes in May 2024 as against 21.78 lakh tonnes recorded in May 2023.

Global Markets:

European shares declined while Asian stocks traded mixed 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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