SENSEX DROPS 269 PTS, NIFTY HOLDS 23,500, IT STOCKS CLIMB

Domestic shares settled on a slightly sour note Friday. The Nifty 50 held the 23,500 mark, giving up some of its morning gains. Investors seem to be taking a breather with no major economic data or events on the horizon. While FMCG, PSU banks and oil & gas stocks fell, IT and consumer durables stocks managed to stay afloat.

In the barometer index, the S&P BSE Sensex was down 269.03 points or 0.35% to 77,209.90. The Nifty 50 index lost 65.90 points or 0.28% to 23,501.10. The Nifty clocked an all-time high of 23,667.10 in early trade.

Adani Enterprises (down 2.16%), Larsen & Toubro (down 1.78%) and Reliance Industries (down 1.34%) were major drags.

In the broader market, the S&P BSE Mid-Cap index shed 0.26% while the S&P BSE Small-Cap index settled with gains of 0.06% after hitting an all-time high at 52,272.55 early today.

The market breadth was negative. On the BSE, 1,786 shares rose and 2,081 shares fell. A total of 120 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, declined 1.03% to 13.21.

Economy:

According to a flash survey by HSBC Holdings Plc, India`s services purchasing managers� index climbed to 60.4 from 60.2 last month, while the manufacturing purchasing managers� index rose to 58.5 from 57.5 in May. That drove the composite PMI to 60.9 from 60.5 the previous month.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper shed 0.04% to 6.973 as compared with previous close 6.976.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.5550, compared with its close of 83.6125 during the previous trading session.

MCX Gold futures for 5 June 2024 settlement was up 0.12% to Rs 72,670.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.11% to 105.71.

The United States 10-year bond yield declined 0.40% to 4.233.

In the commodities market, Brent crude for August 2024 settlement added 1 cent or 0.01% to $85.72 a barrel.

Global Markets:

European market declined on Friday as Carlsberg shares fell sharply after U.K. soft drinks maker Britvic confirmed it had rejected two unsolicited takeover proposals from the Danish drinks giant.

Asian stocks ended mixed today. In Japan, core inflation, which excludes volatile fresh food prices, rose for the first time in three months in May. The increase was driven by higher prices for nonperishable goods and came in at 2.5% year-over-year, exceeding the central bank`s 2% target.

Across the Pacific, the US stock market experienced some volatility Thursday. The S&P 500 briefly surpassed the 5,500 mark before retreating. The technology sector faced pressure, leading the Nasdaq 100 lower after a week-long winning streak. Declines in Nvidia Corp. and Apple Inc. were key contributors to the tech sector`s weakness. However, the Dow Jones Industrial Average bucked the trend and gained around 300 points.

Stocks in Spotlight:

The Nifty IT index advanced 0.76% to 35,200.30 after US-based IT major Accenture reported a rise in small deals and a rebound in consulting growth in Q3.

Accenture`s revenues for the third quarter of fiscal 2024 were $16.47 billion, compared with $16.56 billion for the third quarter of fiscal 2023, a decrease of 1% in U.S. dollars and an increase of 1.4% in local currency. GAAP net income for the quarter was $1.98 billion, compared with $2.05 billion for the third quarter of fiscal 2023.

LTIMindtree (up 1.38%), Persistent Systems (up 1.07%), Coforge (up 1.02%), Infosys (up 0.64%), TCS (up 0.39%), Wipro (up 0.24%) and Mphasis (up 0.13%) advanced.

IREDA surged 5.83% as the state-run renewable energy financier was included in the FTSE All World Index today.

Hindustan Zinc advanced 2.51% after the zinc producer said that it has signed a memorandum of understanding (MoU) with AEsir Technologies to innovate the battery storage space.

Time Technoplast soared 13.26% after the company said that it has received final approval from Petroleum and Explosives Safety Organization (PESO) for manufacturing and supply of high-pressure type-iv composite cylinders for hydrogen.

Kirloskar Pneumatic Company (KPCL) jumped 3.22% after the company said that it has entered into a memorandum of understanding (MoU) to acquire 54.55% equity stake in Systems & Components India (S&C).

Sun Pharmaceutical Industries shed 0.40%. The company said that it has entered into a non-exclusive patent licensing agreement with Takeda Pharmaceutical Company (Takeda) to commercialise Vonoprazan tablets in India under the brand name "Voltapraz�.

ONGC shed 0.81%. The company announced that its board approved the appointment of Devendra Kumar as the chief financial officer (CFO) with immediate effect from 20 June 2024.

Bank of Baroda slipped 2.05%. The bank announced that it has appointed Chayani Manoj Sundar as the chief financial officer (CFO) with effect from 21 June 2024.

Mrs. Bectors Food Specialities slipped 2.37%. The company announced that its board of directors has approved the proposal for raising of funds upto Rs 400 crore by issuance of any method or securities.

JSW Infrastructure gained 2.31% after the firm said that it has incorporated a wholly owned subsidiary, JSW Port Logistics on 19 June 2024.

GE Power India rallied 3.57% after the power generation and transmission equipment maker said it has received a letter of intent (LoI) from NTPC GE Power Services (NGSL) for renovation of steam turbines.

Amara Raja Energy & Mobility rose 0.58%. The company has agreed to further invest Euro 20 million, including a subscription for an additional 4.5% equity stake in InoBat AS.

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