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Nifty surges past 23,550, stocks on bullish spree as budget expectations swell

Published on Jun 18, 2024 17:55

Domestic stocks extended their gains for a fourth straight session, with the Nifty 50 closing above the 23,550 mark. Positive vibes from a stable government and a strong global market fueled the rally. Realty and bank shares surged, while healthcare took a breather. Analysts see the positive momentum continuing, with mid-cap and small-cap stocks potentially leading the charge. All eyes are now on the government`s union budget for the next big market move.

In the barometer index, the S&P BSE Sensex was up 308.37 points or 0.40% to 77,301.14. The Nifty 50 added 92.30 points or 0.39% to 23,557.90.

The Sensex and Nifty clocked an all-time high of 77,366.77 and 23,579.05, respectively, in morning trade.

ICICI Bank (up 1.56%), Adani Enterprises (up 1.36%) and HDFC Bank (up 0.71%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index rose 0.43% and the S&P BSE Small-Cap index added 0.96%. Both the indices hit record high levels today.

The market breadth was positive. On the BSE, 2,167 shares rose and 1,836 shares fell. A total of 147 shares were unchanged.

Economy:

Fitch Ratings upgraded India`s GDP growth forecast for the current fiscal year to 7.2%, citing a rebound in consumer spending and rising investments. Fitch Ratings quarterly Global Economic Outlook report also depicted raised the world growth forecast for 2024 to 2.6% from 2.4%. The report highlights positive signs from Europe`s improving recovery prospects, China`s reviving export sector, and stronger domestic demand in emerging markets (excluding China).

Meanwhile, India�s forex reserves rose 4.307 billion US Dollars to hit a new all-time high of 655.817 billion Dollars for the week ended June 7. The reserves had jumped 4.837 billion dollars to 651.51 billion dollars in the previous week. For the latest week, foreign currency assets, a major component of the reserves, increased by 3.773 billion dollars to 576.337 billion dollars.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper shed 0.03% to 6.982 as compared with previous close 6.984.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.4250, compared with its close of 83.5500 during the previous trading session.

MCX Gold futures for 5 June 2024 settlement was down 0.20% to Rs 71,306.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.16% to 105.49.

The United States 10-year bond yield added 0.47% to 4.297.

In the commodities market, Brent crude for August 2024 settlement lost 3 cents or 0.04% to $84.22 a barrel.

Global Markets:

Shares in Europe and Asia climbed on Tuesday, following gains on Wall Street the previous day. This positive sentiment was buoyed by easing concerns about political instability in Europe. Investors also awaited comments from several Federal Reserve officials scheduled to speak later.

The Reserve Bank of Australia (RBA) held its benchmark interest rate at 4.35% for its fifth straight meeting. Further, the RBA also noted that the economic outlook remained �uncertain,� with recent data signaling that achieving the inflation target was unlikely to be smooth.

U.S. stocks surged to fresh records on Monday, fueled by continued gains in technology companies. The S&P 500 climbed 0.8%, surpassing its all-time high from Thursday. The Dow Jones Industrial Average also rose 0.5%, while the Nasdaq Composite extended its own record with a 1% gain.

The U.S. stock market will be closed tomorrow, Wednesday, June 19th, for Juneteenth.

Stocks in Spotlight:

Wipro rose 3% after the IT major announced an extension of its partnership with US clothing brand Hanesbrands and a new collaboration with financial services company GBST.

One 97 Communication (Paytm) slipped 1.84% while Zomato rose 1.34%. Paytm is in talks with Zomato to sell its movie and ticketing business. The fintech firm is going to focus on its core business: payment and financial services along with goods commerce.

Hindustan Aeronautics (HAL) jumped 6.42% after the company announced that a request for proposal (RFP) has been issued by the Ministry of Defence for procurement of 156 light combat helicopters (LCH).

Rail Vikas Nigam (RVNL) added 1.56% after the company has emerged as lowest bidder (L-1) from East Coast Railway for installing automatic block signaling system in Odisha.

JNK India hit an upper circuit of 20% after the company received mega order from Reliance Industries (RIL) for Gas Cracker Unit (GCU) de-bottlenecking (DBN) project at RIL�s Dahej Manufacturing Division (DMD), Gujarat in India.

Som Distilleries & Breweries tumbled 6.37% after the company terminated the contract with vendor services of its associated company over allegations of child labour. Police has launched an investigation after the Government`s child protection agency found out children working at its liquor factory in Madhya Pradesh.

HFCL jumped 5.39% after the company announced that it was exempted from anti-dumping duties imposed by the European Commission on Indian optical fiber cable (OFC) manufacturers.

BLS E-Services rallied 6.85% after the firm said that it has entered into a definitive share purchase agreement (SPA), to acquire 55% equity shares of Aadifidelis Solutions and its affiliates (ASPL) for an enterprise value of Rs 190 crore.

Gallantt Ispat hit an upper circuit of 5% after the company announced that it has been declared as a successful `preferred bidder� in the auctions for granting the Composite License Iron Ore Block in the State of Raiasthan.

Roto Pumps surged 6.74% after the company announced that it has received a purchase order worth Rs 14.40 crore from GPS Renewables.

New Listing:

Shares of Le Travenues Technology (Ixigo) closed at Rs 161.99 on the BSE, representing a premium of 74.18% as compared with the issue price of Rs 93.

The scrip was listed at Rs 135, exhibiting a 45.16% premium to the issue price.

The stock has hit a high of 161.99 and a low of 135. On the BSE, over 76.43 lakh shares of the company were traded in the counter.

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