NIFTY TRADES NEAR 22,400 LEVELS; EUROPEAN MRKT OPENS HIGHER

The headline equity benchmarks traded with significant gains in afternoon trade. The Nifty traded near the 22,400 level after hitting day`s low of 21,791.95 in early trade. All the sectorial indices on NSE were in the green with FMCG, auto and pharma shares gaining the most.

At 13:30 IST, the barometer index, the S&P BSE Sensex was surged 1,572.34 points or 2.18% to 73,639.07. The Nifty 50 index gained 507.70 points or 2.32% to 22,392.20.

In the broader market, The S&P BSE Mid-Cap index rallied 3.61% and the S&P BSE Small-Cap index added 2.35%.

The market breadth was positive. On the BSE, 2,353 shares rose and 1,374 shares fell. A total of 107 shares were unchanged.

Lok Sabha Elections :

The Lok Sabha elections 2024 concluded with the Election Commission of India declaring all results. Prime Minister Narendra Modi is set to form the government for a third consecutive term. The BJP emerged as the largest party, winning 240 out of 543 seats, while the Congress secured 99 seats. The BJP-led National Democratic Alliance (NDA) won 293 seats, and the Opposition INDIA alliance obtained 232 seats. Despite significant losses in three Hindi heartland states, the NDA secured a majority in the Lok Sabha after a fiercely contested election.

Economy :

The seasonally adjusted HSBC India Services Business Activity Index remained comfortably above the neutral mark of 50.0 in May, highlighting a sharp upturn in output. That said, the headline figure fell from 60.8 in April to 60.2, its lowest mark since last December.

Growth was reportedly supported by rising sales, productivity gains and demand strength. The upturn was somewhat hampered by competitive and price pressures.

May data showed that robust increases in new business intakes continued to underpin output growth across India`s service economy. Rates of expansion eased to the slowest in the calendar year-to-date, however, amid fierce competition, price pressures and a severe heatwave. Both input costs and output charges rose to greater extents.

Indian private sector output rose sharply halfway through the first quarter, despite another loss of growth momentum. The HSBC India Composite Output Index slipped from 61.5 in April to 60.5 in May, highlighting the slowest rate of expansion since last December. There were softer increases in both factory production and services activity.

Gainers & Losers:

Mahindra and Mahindra (up 5.82%), IndusInd Bank (up 5.79%), Hero Motocorp (up 5.65%), Adani Ports and Special Economic Zone (up 5.53%) and Tata Consumer Products (up 5.46%) were major Nifty gainers.

Larsen and Toubro (down 1.90%), Bharat Petroleum Corporation (BPCL) (down 1.50%), State Bank of India (SBI) (down 0.48%) and Power Grid Corporation of India (down 0.46%) were major Nifty losers.

State Bank of India (SBI) declined 0.48%. The company said that its board will meet on Tuesday, 11 June 2024 to consider raising funds through issuance of senior, unsecured notes via public offer and private placement methods.

Stocks in Spotlight:

Tata Motors added 1.76% after the company said that its board has approved to set up a wholly-owned subsidiary namely TML Commercial Vehicles (TMLCVL).

Meanwhile, the board of directors of Tata Motors, Tata Capital (TCL) and Tata Motors Finance (TMFL) has approved a merger of TMFL with TCL through an NCLT scheme of arrangement.

Shilpa Medicare soared 9.58% after the firm said that its wholly owned subsidiary, Shilpa Biologicals has filed its first Drug Master File (DMF) of recombinant Human Albumin 20% with the United States Food and Drug Administration.

Angel One added 3.31% after the company�s client base jumped 63.3% to 23.83 million in May 2024 as against 14.59 million recorded in May 2023.

Hindalco Industries added 2.05% after the company�s wholly owned subsidiary Novelis Inc. announced the postponement of its initial public offering due to market conditions.

Global Markets:

European market advanced as investors awaiting the European Central Bank�s latest policy meeting on Thursday.

Asian stocks traded lower on Wednesday. Oil slipped for sixth consecutive day. Brent crude futures fell 4 cents, or 0.5%, to $77.48 a barrel.

US stocks rose slightly on Tuesday after data showed a weaker-than-expected labor market, which investors believe will lead the Federal Reserve to cut interest rates. The Dow Jones Industrial Average rose 0.36%, the S&P 500 gained 0.15%, and the Nasdaq Composite gained 0.17%.

According to the Bureau of Labor Statistics, US job openings decreased by 296,000, reaching 8.059 million on the last day of April. This marks the lowest level since February 2021 and signifies a decrease in labor market tightness.

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