Closing Bell: Nifty at 18,500, Sensex gains 629 pts; all sectors in the green

Ajit Mishra, VP - Technical Research, Religare Broking

Markets edged higher on Friday and gained nearly a percent, making a strong start for the June expiry. The buying was witnessed across the sectors wherein FMCG, IT and realty were among the top gainers. Consequently, Nifty settled around the day’s high at 18,499.35 levels. Meanwhile, the buoyancy continued on the broader front and the midcap index made a new record high as well.

The tone was positive in the index amid consolidation and now recovery in the US markets combined with improved participation from the IT sector has provided the needed trigger. Besides, a strong surge in heavyweights like Reliance further added to the positivity. Since Nifty has decisively crossed 18,400 levels, we are now eyeing 18,700 to be tested shortly. Traders should align their positions accordingly.

Joseph Thomas, Head of Research, Emkay Wealth Management

The markets remained quite bullish, more or less insulated from developments elsewhere. The uptick seen during the week was across market caps and sectors. The prolonged negotiations in the US on the budget ceiling is being looked at with some amount of consternation as the consequences may be devastating if an agreement is not reached. But the probability of an agreement being hammered out is very high.

Other significant influences on the market would be the economic numbers as well as speculations on the intensity of the economic slide that is likely to happen in the coming quarters. External developments will be of consequence to the markets in the coming weeks more than any domestic event.

Deepak Jasani, Head of Retail Research, HDFC Securities:

Nifty rose sharply on May 26, closing near the intra-day high. At close, Nifty was up 0.97% or 178.2 points at 18499.4. Broad market indices rose less than the Nifty even as the advance decline ratio rose to 1.39:1.

World markets were mixed on Friday, amidst optimism that Congress and the US President will strike a deal to unlock a vote for lifting the U.S. government’s debt ceiling and avert a potentially disastrous default although growing concerns over a slowing global economy restrained investors.

The Indian Meteorological Department has retained its forecast of a normal monsoon even as it expects 'below normal' rainfall in June. The southwest monsoon seasonal rainfall over the country as a whole is likely to be 96% of the long-period average with a model error of +/-4%, officials from the IMD said in its second forecast for the year on Friday. The 2023 June rainfall averaged over the country as a whole is most likely to be below 92% of LPA, according to the IMD.

Nifty gained 1.63% over the week helped by a 0.97% rise on Friday. Upmove on Friday showed strength with wider participation. Nifty could now trade in the 18660-18393 band over the near term.

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas:

The Nifty has finally decisively broken out of the sideways consolidation on the upside. After two weeks of consolidation the Nifty has once again resumed its upmove. This breakout is likely to be a broad-based rally and we expect participation from all sectors hereon.

On the upside, we expect the Nifty to target levels of 18800 which is the 161.82% Fibonacci extension level of the five wave rise (18060 – 18420) on the hourly charts. The hourly momentum indicator has a positive crossover, and the daily momentum indicator is on the verge giving a positive crossover. Thus, both price and momentum indicator suggest that the positive momentum is likely to continue. Overall, from short term perspective we change the outlook to positive for target of 18800.

Rupak De, Senior Technical at LKP Securities:

Bulls have taken control of the Indian equities market, as the Nifty has experienced a consolidation breakout on the daily chart. The rally has been supported by the strength in Reliance, ITC, and IT stocks. The Nifty has been sustaining above a critical moving average, indicating a strong position.

The trend is expected to remain positive as long as the index sustains above the support level of 18400. On the higher end, there is a resistance level at 18700.

Gaurav Bissa, VP - InCred Equities:

Nifty opened on a positive note taking cues from a strong US market and gained momentum as the day progressed. Not only did it hold above 18400 level with relative ease but managed to close well above the previous swing high of 18460. RSI is inching towards 70 which if sustained can give a fresh push to Nifty.

18400 put option has witnessed significant intraday selling implying a robust upside towards 18650 can be seen as long as 18400 is protected.

Banknifty has managed to consistently close above its 10 DMA even when Nifty closed below its 10 DMA for a couple of trading sessions. However, Banknifty is yet to cross its immediate hurdle of 44160 levels whereas Nifty has closed well above its hurdle. A strong upside till 45000 can be seen once it confirms a breakout after closing above 44160 levels.

Rupak De, Senior Technical at LKP Securities:

Bulls have taken control of the Indian equities market, as the Nifty has experienced a consolidation breakout on the daily chart. The rally has been supported by the strength in Reliance, ITC, and IT stocks. The Nifty has been sustaining above a critical moving average, indicating a strong position.

The trend is expected to remain positive as long as the index sustains above the support level of 18400. On the higher end, there is a resistance level at 18700.

Vinod Nair, Head of Research at Geojit Financial Services

Despite weak cues from global markets, the domestic market defied the trend and experienced a widespread rally, driven by the strong growth forecast for the Indian economy.

With the upcoming Q4 GDP data, it is anticipated that India's FY23 GDP will marginally surpass the earlier projected 7.0% growth rate. Additionally, the expectation of a normal monsoon and consistent FII buying further boosted confidence among domestic investors.

Rupee Close:

Indian rupee closed 18 paise higher at 82.56 per dollar against previous close of 82.74.

Market Close:

Benchmark indices ended higher on the first day of the June series with Nifty at 18,500.

At close, the Sensex was up 629.07 points or 1.02 percentat 62,501.69, and the Nifty was up 178.10 points or 0.97percentat 18,499.30. About 1,879 shares advanced, 1,503 shares declined, and 138 shares were unchanged.

The biggest gainers on the Nifty included Reliance Industries, Sun Pharma, Divis Labs, HUL and Hindalco Industries, while losers were ONGC, Grasim Industries, Bajaj Auto, Bharti Airtel and Power Grid Corp.

All sectoral indices ended in the green with Metal, FMCG, Information Technology, Realty, Pharma and PSU Bank up 1 percent each.

The BSE midcap index added 0.8 percent and the smallcap index was up 0.5 percent.

Rajesh Jejurikar, Executive Director (Auto & Farm Sectors) of Mahindra & Mahindra

Mahindra to roll out a new platform for Swaraj Tractors,

Our current open bookings of all utility vehicles put together is 2,92,000 units

We are number in revenue marketshare for the last 5 quarters

Mahindra and Mahindra was quoting at Rs 1,281.30, up Rs 3.75, or 0.29 percent.

Expect Rupee to trade with a slight negative bias: Anuj Choudhary - Research Analyst, Sharekhan by BNP Paribas

Indian Rupee appreciated due to some softness in the US Dollar today on recovery in global markets amid reports of progress on the debt ceiling deal. There are talks of raising the debt ceiling for 2 years though the deal is yet to be finalised. US Dollar rose to two and half month high yesterday as US 1st quarter GDP was revised higher to 1.3percentfrom initial estimates of 1.1percentand as weekly unemployment claims also topped forecasts.

We expect Rupee to trade with a slight negative bias in the near term as nervousness in the markets will continue till the debt ceiling deal is finalised and approved. Renewed worries over a global economic slowdown as Germany slipped into recession may also weigh on Rupee. However, FII inflows, the overnight decline in crude oil prices and a positive tone in domestic equities may prevent a sharp fall in Rupee.

Traders may remain cautious ahead of core PCE deflator and durable goods orders data from the US We expect the USDINR spot to trade in between 82.30 to 83.20 in the near term.

Shrikant Chouhan, Head of Equities Research (Retail), Kotak Securities

Nifty Index gained 1.28 percent, while Sensex gained around 0.9% in the past week. Both BSE Midcap Index underperformed, while BSE SmallCap Index underperformed. BSE Midcap Index gained 2.15 percent, while BSE SmallCap Index gained 0.68 percent. Indian equity markets remained concerned about growth prospects, even as inflation continued its downward trajectory both globally and domestically. Global markets were mixed last week as concerns around the US debt ceiling and a weak global growth outlook persisted. Indian equity markets were buoyed by a decent Q4FY23 earnings print, even though the quality of earnings was weak.

It was a positive session for sectors. BSE FMCG, BSE Capital Goods, BSE Oil&Gas, BSE Metals, BSE Telecom, BSE Power and Nifty Pharma gained the most. On the other hand, BSE Reality, BSE IT, and Bank Nifty lost the most. Within the Nifty Index, Adani Enterprise (+30.4 percent), Divis Lab (+13.1 percent) and ITC (+5.4 percent) gained the most and Grasim (-2.4 percent), HDFC (-2.4 percent) and HDFC Bank (-2.2 percent) lost the most. FPIs & DIIs were net buyers during the week. Going forward, D-street will focus on the macro trends. Markets going ahead may be dominated by global news flows and steps taken by different governments to tackle their economy.

In the US, Nvidia shares exploded yesterday and helped uplift other tech and semiconductor companies. There were urgent talks to raise the U.S. debt ceiling that appeared to move closer to a deal Thursday, with only seven days to go before the United States faces an imminent threat of debt default. The U.S. The Commerce Department said Secretary Raimondo “raised concerns about the recent spate” of actions taken against U.S. companies operating in China. G7 leaders that met in Hiroshima vowed to take an approach of “de-risk” from China, adding that some of its practices could “distort the global economy.

Market at 3 PM

The Sensex was up 595.15 points or 0.96percentat 62,467.77, and the Nifty was up 172.80 points or 0.94percentat 18,494. About 1,785 shares advanced, 1,431 shares declined, and 117 shares were unchanged.

Sun Pharma Q4

Net profit at Rs 1,984.5 crore versus loss of Rs 2,277 crore year ago
Revenue up 15.7 percentat Rs 10,930.6 crore vs Rs 9,446.8 crore, YoY

Shilpa Medicare shares fall 2% on Q4 loss at Rs 8.04 crore

Shilpa Medicare has posted loss of Rs 8.04 crore for March FY23 quarter, against profit of Rs 29.5 crore in same period last year, impacted by dismal topline and operating numbers. Revenue for the quarter at Rs 263.6 crore dropped by 22.6% compared to year-ago period.

Shilpa Medicare was quoting at Rs 237.75, down Rs 6.45, or 2.64 percent.

Power Mech Projects Q4 Earnings:

Net profit up 58 percent at Rs 75.2 crore versus Rs 47.6 crore (YoY)
Revenue up 30.1 percent at Rs 1,174.1 crore versus Rs 902.4 crore (YoY)

Power Mech Projects was quoting at Rs 3,229.95, up Rs 33.05, or 1.03 percent and touched a 52-week high of Rs 3,294.

Steel Strips Wheels Q4 Results

Net profit down 3.3 percent at Rs 47.3 crore versus Rs 48.9 crore (YoY)
Revenue (RD)5.5 percent at Rs 1,004.9 crore versus Rs 1,063.3 crore (YoY)

Steel Strips Wheels was quoting at Rs 150.50, down Rs 0.35, or 0.23 percent.

Gateway Distripark Q4 Earnings

Net profit down 19.4 percent at Rs 68.5 crore versus Rs 85 crore (YoY)
Revenue up 5percentat Rs 377 crore versus Rs 359 crore (YoY)

Gateway Distriparks was quoting at Rs 65.09, down Rs 1.31, or 1.97 percent on the BSE.

Grasim Industries Q4 Results

NCL Industries Q4:

Net profit down 37.2percentat Rs 9.8 crore versus Rs 16 crore, YoY
Revenue up 8.8 percent at Rs 484.8 crore versus Rs 445.4 crore, YoY

BSE FMCG index up 1 percent led by Bectors Food, Tasty Bite, Zuari Industries

Voltamp Transformers shares gains post Q4 earnings

Voltamp Transformers has posted 47.6 percent jump in its Q4 net profit at Rs 76.57 crore versus Rs 51.86 crore in March 2022.

Info Edge Q4 results

Net profit at Rs 178.9 crore against loss of Rs 84.2 crore
Revenue rose 1.6 percent at Rs 564 crore versus Rs 555.1 crore

M&M Q4 Earnings

Net profit up 22.1percentat Rs 1,549 crore versus Rs 1,268 crore, YoY
Revenue up 31percentat Rs 22,571.4 crore versus Rs 17,237 crore, YoY

Mahindra and Mahindra was quoting at Rs 1,276.15, down Rs 1.40, or 0.11 percent.

GVK Power Q4

Net loss at Rs 35.8 crore versus profit of Rs 52.6 crore, YoY
Revenue down 69.1 percent at Rs 186.2 crore versus Rs 602.1 crore, YoY

GVK Power & Infrastructure was quoting at Rs 2.52, up Rs 0.02, or 0.80 percent.

Market at 2 PM

The Sensex was up 496.25 points or 0.80 percent at 62,368.87, and the Nifty was up 145.20 points or 0.79 percent at 18,466.35. About 1,919 shares advanced, 1,497 shares declined, and 136 shares were unchanged.

Aditi Nayar of ICRA expects the GDP growth to moderate to ~6% in FY2024

A slightly late onset and below-normal rainfall in June 2023 can be mitigated by the seasonally healthy reservoir levels. A normal distribution of rainfall in July 2023 will be critical to ensure the timely sowing of kharif crops over the majority of the country. ICRA expects the GDP growth to moderate to ~6 percentin FY2024, with a downside risk of up to 50 bps from the materialisation of El Nino conditions, even as frontloaded capex by the GoI and the States and rapid execution of infra projects could provide an upside.

PG Electro Q4 net profit up 46% YoY

Net profit up 45.6 percentat Rs 40.2 cr vs Rs28 cr (YoY)

Revenue up 61.2percentat Rs 828.2 cr vs Rs513.7 cr (YoY)

EBITDA up 51.7percentat Rs 75.8 cr vs Rs50 cr (YoY)

Margin at 9.1percentvs 9.7percent(YoY)

BHEL fell 3% ahead of March quarter earnings

Ahead of its March quarter earnings, Bharat Heavy Electricals Ltd (BHEL) witnessed a 3 percentdecline in its share price.

Karnataka Bank appoints Srikrishnan Hari Hara Sarma as Managing Director & CEO

The Board of Directors at its meeting held today has appointed Mr. Srikrishnan Hari Hara Sarma as an Additional Director to take up the role of Managing Director & CEO of the Bank for a period of three years effective from the date of his assuming charge.

Karnataka Bank was quoting at Rs 139.75, up Rs 2.00, or 1.45 percent.

Samvardhana Motherson International Q4 Earnings:

Net profit at Rs 654 crore versus Rs 122 crore, YoY
Revenue was up 30.4 percent at Rs 22,476.8 crore versus Rs 17,241.4 crore, YoY

Samvardhana Motherson International was quoting at Rs 80.87, down Rs 0.84, or 1.03 percent.

KPI Green Energy Q4 Results

Net profit was at Rs 31.7 crore versus Rs 10 crore, YoY
Revenue at Rs 182.4 crore versus Rs 74.9 crore, YoY.

KPI Green Energy was quoting at Rs 512.70, down Rs 6.50, or 1.25 percent.

Bank Of Baroda board to consider fund raise on June 2

A meeting of Board of Directors of Bank of Baroda is scheduled to be held on June 02, 2023 to consider & approve the Capital Plan for FY2023-24 by way of raising funds through Additional Tier 1 and Tier 2 Debt Capital Instrument with an interchangeability option, subject to applicable statutory/regulatory approvals.

Bank Of Baroda was quoting at Rs 182.65, up Rs 0.85, or 0.47 percent on the BSE.

Snowman Logistics Q4:

Zee-Sony Case

NCLAT sets aside NCLT order directing NSE, BSE to review grant of NOC

Market at 1 PM

The Sensex was up 419.92 points or 0.68 percentat 62,292.54, and the Nifty was up 121.20 points or 0.66percentat 18,442.40. About 1,780 shares advanced, 1,369 shares declined, and 108 shares were unchanged.

TVS Motor Co hits record high, market cap crosses Rs 60,000 crore

JUST IN

Zee Entertainment in focus: NSE and BSE says they were only asked by SEBI to place the order by NCLT. They have no objection to any order by NCLAT.

Nucleus Software Exports Q4:

Net profit up 76.5 percentat Rs 67.6 crore versus Rs 38 crore, QoQ
Revenue up 21.8 percent at Rs 206.2 crore versus Rs 169.3 crore, QoQ