Sensex, Nifty advance on upbeat global cues

The domestic benchmark indices were trading with modest gains in early trade on buying demand in index pivotals. Positive global cues boosted the investors sentiment. The Nifty traded a tad above the 18,600 level. All the sectoral indices on the NSE were in the green with media, financial services and private bank stocks gaining the most.

At 09:27 IST, the barometer index, the S&P BSE Sensex, was up 296.08 points or 0.47% to 62,843.19. The Nifty 50 index gained 71.55 points or 0.39% to 18,605.65.

In the broader market, the S&P BSE Mid-Cap index added 0.34% while the S&P BSE Small-Cap index rose 0.70%.

The market breadth was strong. On the BSE, 2,156 shares rose and 704 shares fell. A total of 117 shares were unchanged.

The Reserve Bank of India (RBI)`s six-member Monetary Policy Committee is scheduled to meet this week during 6-8 June 2023. RBI Governor Shaktikanta Das will announce the MPC decision on Thursday, 8 June 2023, the last date of the meeting.

Foreign portfolio investors (FPIs) sold shares worth Rs 658.88 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 581.85 crore in the Indian equity market on 2 June, provisional data showed.

Economy:

India`s foreign exchange reserves fell for a second consecutive week and stood at a one-month low of $589.14 billion as of May 26, the Reserve Bank of India`s (RBI) data showed on Friday. That was a decrease of $4.34 billion from the previous week. For the week ended May 26, the foreign currency assets, a major component of the reserves, declined by $4.014 billion to $520.931 billion, according to the Weekly Statistical Supplement released by the RBI.

Gold reserves dropped by $225 million to $44.902 billion, the RBI said. The Special Drawing Rights (SDRs) were down by $84 million to $18.192 billion, the apex bank said. The country`s reserve position with the IMF was down by $17 million to $5.113 billion in the reporting week, the apex bank data showed.

Stocks in Spotlight:

Wipro rose 0.91%. The IT major has fixed 16 June 2023 as the Record Date for the purpose of determining the entitlement and the names of equity shareholders who are eligible to participate in the buyback of equity shares by the company.

Hero MotoCorp added 0.45%. The 2-wheeler maker launched a new range of its popular 100cc motorcycle - the HF Deluxe. Retaining the brand DNA, the new HF Deluxe portfolio presents the right balance of style, tech-excellence, and performance.

NTPC gained 0.80%. The state-run power major said that its subsidiary, NTPC Green Energy has declared commercial operation of fifth and last part capacity of 50 megawatt (MW) out of 300 MW Nokhra Solar PV project at Bikaner, Rajasthan.

Vedanta declined 1.27%. The diversified minerals company announced that its subsidiary, Bharat Aluminium Company (BALCO) has entered into a power delivery agreement (PDA) through special purpose vehicle (SPV), Serentica Renewables India (SRIPL).

SBI Life Insurance Company rose 0.68%. The company will take over the policy liabilities of around two lakh policies of Sahara India Life Insurance Company (SILIC), backed by the policyholders` assets, with immediate effect.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper added 0.30% to 7.005 from previous close of 6.984.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.51, compared with its close of 82.39 during the previous trading session.

MCX Gold futures for 4 August 2023 settlement slipped 1.07% to Rs 59,587.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.10% to 104.12.

The United States 10-year bond yield rose 0.76% to 3.722.

In the commodities market, Brent crude for August 2023 settlement gained 74 cents or 0.97% to $76.87 a barrel.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, on Sunday made no changes to its planned oil production cuts for this year, as coalition chair Saudi Arabia announced further voluntary declines. Oil prices rose after OPEC kingpin Saudi Arabia decided to cut production by another million barrels per day. OPEC+ also announced in a statement that it will limit combined oil production to 40.463 million barrels per day over January-December 2024.

Global Markets:

Asian stocks were trading higher on Monday on optimism the Federal Reserve would pause its rate hikes this month after a mixed U.S. jobs report, while oil jumped as Saudi Arabia pledged big output cuts in July.

China`s services activity picked up in May, a private-sector survey showed on Monday. The Caixin/S&P Global services purchasing managers` index (PMI) rose to 57.1 in May from 56.4 in April. The 50-point mark separates expansion from contraction in activity.

Japan`s service sector saw a record rate of expansion in May, according to private surveys by au Jibun bank. The country`s services purchasing managers` index came in at 55.9, surpassing the previous record of 55.4 set last month and extending its streak to six straight months of quickening expansion.

US stocks closed higher on Friday after a labor market report showing moderating wage growth in May indicated the Federal Reserve may skip a rate hike in two weeks, while investors welcomed a Washington deal that avoided a catastrophic debt default. U.S. President Joe Biden signed into law a debt ceiling bill that allowed the U.S. to avert defaulting on its financial obligations over the weekend.

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