SENSEX JUMPS 580 PTS; IT SHARES ADVANCE

The headline equity indices traded with major gains in early afternoon trade. The Nifty scaled above the 22,750 mark after hitting the day�s low of 22,577.45 in early trade. IT shares rallied for the second consecutive trading session. Trading could be a volatile due to the expiry of weekly index options on the NSE.

At 12:28 IST, the barometer index, the S&P BSE Sensex, was up 579.92 points or 0.78% to 74,799.34. The Nifty 50 index rallied 181.35 points or 0.81% to 22,780.20.

In the broader market, the S&P BSE Mid-Cap index added 0.50% and the S&P BSE Small-Cap index rose 0.28%.

The market breadth was positive. On the BSE, 1,876 shares rose and 1,823 shares fell. A total of 131 shares were unchanged.

Economy:

The Reserve Bank of India (RBI) announced a transfer of Rs 2.11 lakh crore to the government for the financial year 2023-24. This represents the highest surplus transfer on record by the central bank. This surplus will be reflected in the government`s accounts for the financial year 2024-25, providing a significant boost to their fiscal position.

HSBC Flash India Composite Output Index rise from a final reading of 61.5 in April to 61.7, which indicated the third-strongest rate of expansion in close to 14 years. Services firms recorded a sharp increase in business activity, the steepest in four months, while factory production rose at the slowest pace since February. Nevertheless, manufacturing continued to record a stronger rate of growth than services.

HSBC Flash India Manufacturing PMI slipped from 58.8 in April to 58.4 in May, showing the weakest improvement in the health of the sector for three months but one that remained strong by historical standards.

HSBC Flash India Services PMI Business Activity Index stood at 61.4 in May as against 60.8 in April.

Latest data highlighted further signs of strength in new export orders across both the manufacturing and service sectors.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, shed 0.64% to 21.33. The Nifty 30 May 2024 futures were trading at 22,811.15, at a premium of 30.95 points as compared with the spot at 22,780.20.

The Nifty option chain for the 30 May 2024 expiry showed maximum Call OI of 40 lakh contracts at the 23,500 strike price. Maximum Put OI of 44.3 lakh contracts were seen at 22,500 strike price.

Buzzing Index:

The Nifty IT index gained 1.30% to 34,050.60. The index added 1.92% in the two consecutive trading sessions.

Coforge (up 4.95%), Persistent Systems (up 2.36%), Mphasis (up 1.92%), Infosys (up 1.34%) and Wipro (up 1.28%), LTIMindtree (up 1.27%), L&T Technology Services (up 1.13%), Tata Consultancy Services (up 0.95%), HCL Technologies (up 0.93%) and Tech Mahindra (up 0.73%) advanced.

Stocks in Spotlight :

Godrej Properties shed 0.88%. The company said that it has sold nearly 650 homes worth over Rs 2,000 crore in its project Godrej Jardinia, which is located in Sector 146, Noida.

FSN E-Commerce Ventures (Nykaa) rose 0.36%. The company reported consolidated net profit of Rs 90.71 crore in Q4 FY24, steeply higher than Rs 22.75 crore posted in Q4 FY23. Revenue from operations jumped 28% to Rs 1,667.98 crore in Q4 FY24 as compared with Rs 1,307.72 crore in Q4 FY23.

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