Sensex gains 381 pts, Nifty above 16,600; breadth positive

The domestic equity benchmarks further extended gains and hit a fresh intraday high in the mid-afternoon trade. The Nifty was trading above 16,600 level. Auto stocks slipped for the second consecutive session. Trading was volatile ahead of the expiry of weekly index options on the NSE today.

At 14:30 IST, the barometer index, S&P BSE Sensex was up 381.41 points or 0.69% to 55,762.58. The Nifty 50 index rose 90.55 points or 0.55% to 16,613.30.

In the broader market, the S&P BSE Mid-Cap index fell 0.36% while the S&P BSE Small-Cap index gained 0.43%.

The market breadth was positive. On the BSE, 1,866 shares rose while 1,391shares fell. A total of 137 shares were unchanged.

COVID-19 Update:

India`s active caseload currently stands at 19,509. In the last 24 hours, 3,712 new cases and 2,584 recoveries have been recorded. The daily positivity rate is 0.67%. The recovery rate currently is at 98.74%.

The media reported that Maharashtra CM Uddhav Thackeray has called a meeting of the COVID-19 task force today, in the view of surging COVID-19 cases in the state.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose to 7.431% as compared with 7.414% at close in the previous trading session.

In the foreign exchange market, the rupee was lower against the dollar. The partially convertible rupee was hovering at 77.5752, compared with its close of 77.50 during the previous trading session.

MCX Gold futures for 3 June 2022 settlement rose 0.44% to Rs 51012.00.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, decreased 0.26% to 102.23.

In the commodities market, Brent crude for August 2022 settlement fell $3.01 or 2.59% at $113.28 a barrel. The losses came after the media reported Saudi Arabia is ready to pump more oil if Russian output declines.

Buzzing Index:

The Nifty auto index fell 0.96% to 11,451.55. The index declined 1.17% in two trading sessions.

Among the components of the Nifty Auto index, Hero MotoCorp (down 3.39%), Balkrishna Industries (down 2.48%), Bharat Forge (down 2.28%), Tata Motors (down 1.73%) and Eicher Motors (down 1.6%) were the top losers.

Among the other losers were MRF (down 1.12%), Bajaj Auto (down 0.98%), Tube Investments of India (down 0.93%), Sona BLW Precision Forgings (down 0.69%) and Maruti Suzuki India (down 0.52%).

On the other hand, Bosch (up 1.12%), Escorts (up 0.77%) and Ashok Leyland (up 0.5%) advanced.

Eicher Motors fell 1.6% after the company recorded total motorcycles sales of 63,643 units in May 2022 as against 27,294 units in May 2021. While the company sold 53,835 units (up 137% YoY) of models with engine capacity upto 350cc, sales of models with engine capacity exceeding 350cc was 9,808 units (up 115% YoY). Motorcycles sales in the international business rose by 40% to 10,118 units in May 2022 over May 2021.

Stocks in Spotlight:

Religare Enterprises surged 8.53% after the company said its lenders in principally agreed to the proposed one time settlement of Religare Finvest. Religare Finvest Limited (RFL), a wholly-owned subsidiary of Religare Enterprises (REL), has been a victim of siphoning off of funds by its erstwhile promoters. It has initiated and pursuing legal actions for recovery and now begun its path towards revival. Post RFL`s one time settlement completion, it will have healthy prudential ratios well above those prescribed by RBI, REL said in a statement.

Greaves Cotton advanced 2.41% after the company announced that Abdul Latif Jameel International DMCC will infuse $150 million (Rs 1160 crore) for 35.8% stake in company`s wholly owned subsidiary, Greaves Electric Mobility ("GEMPL"). GEMPL has the right to secure additional funding of $70 million from investor over the next 12 months. Post money equity value for Greaves Electric Mobility stands at $419 million or Rs 3238 crore. Greaves Cotton market cap stand at Rs 3745 crore. Greaves Electric will continue to remain subsidiary of Greaves Cotton even after both the rounds of fund infusion.

BLS International Services shed 0.49%. The company has announced the signing of a contract with the Royal Thai Consulate-General, Mumbai, for visa services. BLS will be accepting visa applications on behalf of Royal Thai Consulate-General, Mumbai from 6th June, 2022 onwards.

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