Closing Bell: Sensex zooms 1,619 points, Nifty around 23,300; all sectors in the green

Indian benchmark indices ended higher for the third consecutive session on June 7 with Nifty around 23,300. The Sensex was up 1,618.85 points or 2.16 percent at 76,693.36, and the Nifty was up 468.80 points or 2.05 percent at 23,290.20.

We wrap up today's edition of the Moneycontrol live market blog, and will be back tomorrow morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices for all the global market action.

Nifty opened on a flat note and inched higher throughout the day to close with a gain of 469 points. On the daily charts we can observe that the Nifty has been inching higher after a sharp decline on Tuesday earlier during this week. It has recovered all the lost ground and is within touching distance of previous all-time high of 23338. The V shape recovery has put the structure in the Favor of bulls and dips towards support zone 22800 – 22700 should be used as a buying opportunity. On the upside the psychological level of 23500 is likely to attract some profit booking at higher levels.

Bank Nifty also witnessed continuation of the pullback and however is lagging as it is still far away from its previous all-time high of 51133. The pullback is likely to continue and in the case of a dip towards 49500 – 49000 it should be used as a buying opportunity. On the upside, 51133 shall act as an immediate hurdle from short term perspective.

The anticipation of stability within the coalition government at the centre, coupled with the RBI's upward revision of its growth forecast for FY25 to 7.2%, fuelled a broad-based rally in the domestic market. The Indian market surpassed its previous record high set on exit-poll day and reached a fresh peak. Though the last mile towards the inflation target remains sticky, investors are expecting the MPC to be one step closer to the easing cycle.

The Nifty moved up significantly after a flat closing in the previous trading session. The short-term trend looks very positive as the index closed near an all-time high. Going forward, the market remains a buy on dips as long as 23000 is not broken. On the higher end, the index might move towards 23500-23600. On the lower end, profit booking might occur only below 23000.

Indian rupee ended 9 paise higher at 83.38 per dollar on Friday against Thursday's previous close of 83.47

Indian benchmark indices ended higher for the third consecutive session on June 7 with Nfity around 23,300.

The Sensex was up 1,618.85 points or 2.16 percent at 76,693.36, and the Nifty was up 468.80 points or 2.05 percent at 23,290.20. About 2598 shares advanced, 801 shares declined, and 76 shares unchanged.

Biggest gainers included M&M, Wipro, Tech Mahindra, Infosys and UltraTech Cement, while losers were SBI Life Insurance and Tata Consumer Products.

All the sectoral indices ended in the green with auto, IT, power, telecom, metal up 2-3 percent.

The BSE midcap index gained 1.2 percent while the smallcap index rose 2 percent.

#1 Strong volume & higher realisation to drive margin
#2 Company has taken two successive price hikes in Q1FY25
#3 Full capacity utilisation at NMDC steel could boost sales volume FY25 onwards
#4 Ramp up of RINL’s blast furnace 3 by JSPL could boost sales volume FY25 onwards

#1 Despite reduced majority, expect upcoming govt’s policy focus on investment-led growth
#2 Expect upcoming govt’s focus on capex, infra, manufacturing & defence will continue
#3 Company’s order inflows for FY24 were far ahead of its guidance
#4 FY24 order inflow thereby hedge it against any slowdown in order inflows in FY25

#1 Live demos indicates rich domain experience & long-standing client relationships
#2 Believe company is well positioned to benefit from rising outsourcing trend in ER&D services
#3 However, near-term macro concerns & investment phases create earnings headwinds

Muthoot Microfin announced a strategic co-lending partnership with the State Bank of India (SBI). With this collaboration, Muthoot Microfin Limited aims to extend its financial services to women entrepreneurs in rural and semi-urban regions across India.

Brokerage Call | NTPC, NHPC, Power Grid, BHEL key beneficiary of 100-day power plan: CLSA

#1 NTPC is leading the way with 8.8 GW of tenders announced this week
#2 NTPC orders in sync with the govts plan, while crystallising its decadal growth path
#3 Believe off-shore wind subsidies could be postponed
#4 Hydro policy is important for India’s net zero
#5 NTPC, NHPC, Power Grid & BHEL are key beneficiary of the 100-day power plan

Sensex Today | Nifty PSU Bank index up 1%; Bank of India, Union Bank of India up 2% each

In line with market consensus, MPC kept the key policy rates unchanged. Growth outlook is projected to be robust at 7.2% for FY24-25 while the inflation is projected at 4.5%.

Given the cushion of strong growth momentum, volatile food prices, and ongoing geopolitical uncertainties, indications are that there may be no rush for a rate cut even as two major global central banks have already cut rates last week.

From market perspective, the policy turned out a relative non-event, being on expected lines. Bond yields remained largely range bound. Market is also focused on the contours of the new government being formed.

Markets@3 | Sensex hits fresh all-time high, Nifty at 23,300

The Sensex was up 1,708.19 points or 2.28 percent at 76,782.70, and the Nifty was up 491.70 points or 2.15 percent at 23,313.10.

Mastek announced it is advancing its icxPro platform with NVIDIA accelerated computing. Offering the next generation of customer experience (CX) solutions powered by artificial intelligence (AI), icxPro has demonstrated a 20% return on capital employed (ROCE) in the Manufacturing sector, with massive potential in the BFSI and Healthcare sectors. The launch of icxPro marks a significant stride in Mastek’s non-linear growth strategy.

The Board of Directors of HUL has approved the appointment of Mr. Arun Neelakantan, presently Chief Digital Officer, as Executive Director, Customer Development with effect from 1st July, 2024, in succession to Mr. Kedar Lele.

Further, Mr. Kedar Lele has decided to move on from Unilever. The successor for the role of Chief Digital Officer will be announced in due course.

Indian liquor makers surge on expectations of increased sales following the victory of a political leader who backed their products during elections. Associated Alcohols jumps 10%, Radico Khaitan rises 2.3%, United Breweries climbs 3.2%, and SOM Distilleries gains 2.4%. N. Chandrababu Naidu, the new chief minister of Andhra Pradesh and a key figure in the federal government, pledged affordable quality liquor during his campaign. He's part of Narendra Modi's alliance. (Source: NDTV.com)

#1 Nifty IT index gained 9 percent in the last three sessions

The Reserve Bank of India (RBI) has maintained the repo rate at 6.5%, marking the eighth consecutive time post Lok Sabha Elections 2024. This decision underscores the central bank's commitment to fostering stability amidst robust economic growth and a slight easing of inflation to 4.83%. Aligned with the Federal Reserve's approach, the RBI aims to address fluctuating food prices and liquidity volatility, maintaining vigilance in liquidity operations to counter election-induced pressures. The Indian government's pursuit of reducing the fiscal deficit, supported by RBI dividends, further reinforces economic stability. Despite revising the GDP forecast for FY25 to 7.2%, the RBI opted to retain the consumer inflation forecast unchanged. India's economic fundamentals are robust, with FY24 witnessing GDP growth of 8.2%, while inflation remains within the RBI's target range. The policy tone reflects confidence in domestic dynamics while acknowledging global uncertainties.

Brokerage Call | CLSA prefers ONGC over IOC, BPCL & HPCL

#1 Asian GRM benchmark is tracking nearly $4/bbl lower QoQ
#2 Our marker indicates a steeper decline for IOC, BPCL, HPCL & RIL
#3 Marketing margin are also tracking much lower QoQ
#4 Lower marketing margin pushing integrated margins to a six-quarter low
#5 Given a weaker-than-estimate election mandate, fears of a more populist govt have risen
#6 This, along with falling margin, may drive a de-rating of OMCs
#7 Prefer ONGC over IOC, BPCL & HPCL

Markets@2 | Nifty at 23,200, Sensex gains 1,300 pts; IT stocks rally

The Sensex was up 1,333.08 points or 1.78 percent at 76,407.59, and the Nifty was up 380.40 points or 1.67 percent at 23,201.80. About 2582 shares advanced, 763 shares declined, and 88 shares unchanged.

All the sectoral indices were trading in the green with IT index rose more than 3 percent.

BSE Midcap and Smallcap indices rose 1-2 percent.

The policy maintained status quo was pretty much expected. The vote is now 4-2 compare to 5-1 in the earlier policy. Disinflation seems to be the word for now and food inflation could be the party spoiler in this process.

What is encouraging to see is that global central banks have started easing rates, ECB and bank of Canada among the recent ones. FPIs in our view will continue to be net buyers of fixed income in near term as well. While rate cut is still some time away, we remain constructive on interest rates and expect 10 year gsec bond yield to gradually ease in coming months.

GR Devinagar Kasganj Highway Private Limited, a wholly owned subsidiary of G R Infraprojects, has received a letter from the National Highways Authority of India declaring appointed date for the project being undertaken by GR Devinagar Kasganj Highway.

The project included four laning of NH 530B from Devinagar Bypass (End) (Existing Km. 208.000 of NH 530B/ Design Km. 66.000) to Kasganj Bypass (End) (Existing Km. 150.100 of NH 530B/Design Km. 123.100) in the state of Uttar Pradesh under Bharatmala Pariyojana on HAM mode.

The bid project cost is Rs 1226.87 crore and to be completed in 730 days from appointed date.

Pidilite Ventures Pvt. Ltd. (PVPL), wholly owned subsidiary of Pidilite Industries, has divested its entire shareholding in Climacrew Private Limited (CPL), Associate company to existing and new shareholder(s) of CPL. Accordingly, CPL ceases to be an Associate Company of PVPL.

Dixon Technologies (India) and HKC Corporation Limited enters into a Term Sheet for prospective Joint Venture arrangement for manufacturing of Liquid Crystal Modules (LCM), thin film transistor liquid crystal display modules, assembly of end products like, smartphones, TVs, monitors and auto displays and selling HKC branded End products in India.

Sensex Today | Nifty FMCG index rises nearly 1%; Emami, Godrej Consumer , Dabur India up 2-5%

Zen Technologies announced the successful delivery of its innovative Zen Anti‐Drone System with Hard‐Kill (Zen ADS HK) to the Army Air Defence College in Gopalpur, Odisha.

Also, the company got India Patent Grant for TZS (LASER BORESIGHTING).

#1 Mega-Deal in US could be taken positively in a tight discretionary spending environment
#2 Wipro will provide managed services for some products and industry-specific solutions
#3 Total size of the contract is USD 500 million & tenor is five year
#4 Believe Near-term growth could lag peers & until growth gap narrows
#5 P/E multiple gap could remain wide as well

After the Reserve Bank of India (RBI) decided to keep the repo rate unchanged at 6.5 percent, economists think that the central bank will look at lowering the rates from October 2024. Read More

Sensex Today | BSE Power index gains 1%; Power Grid Corp, Adani Power up 2% each

#1 Zee board approves Rs 2,000 crore fundraising as sector landscape is changing
#2 With this fundraising, Zee is looking to fortify ahead of increased competition
#3 Zee’s low promoter ownership of 4 percent remains a key challenge

Wipro has been awarded a USD 500 million deal by a leading US Communication Service Provider. Wipro shall provide managed Services for some products and industry specific solutions. The order is to be executed over a period of 5 years.

Market@1 | Nifty at 23,200, Sensex up 1,300 pts; all sectors in the green

The Sensex was up 1,390.73 points or 1.85 percent at 76,465.24, and the Nifty was up 392.40 points or 1.72 percent at 23,213.80. About 2545 shares advanced, 765 shares declined, and 92 shares unchanged.

Sensex Today | BSE Telecom index up 2%; GTL Infra, Tejas Networks, OnMobile Global, among top gainers

Nifty is trending higher as it broken resistance at 22,900 and 23,000. Market trending higher, moving towards all-time high, says Avdhut Bagkar- Technical and derivative analyst at Stoxbox.

Rail Vikas Nigam has received Letter of Award from National Thermal Power Corporation (NTPC) for project execution agency (PEA) contract for execution of Balance Civil & HM works of Barrage Complex including part HRT package of Rammam Hydro Electric Project Stage-III (3x40 MW).

The total order value is Rs 495,14,16,130.68 and is to be executed in 66 months.

The Hon’ble National Company Law Tribunal, Hyderabad Bench has on June 6, 2024, sanctioned Scheme of Amalgamation of Bhubaneshwar Power Private Limited into and with Tata Steel Limited.

A few media outlets have reported issues relating to mutual fund NAVs on June 4th for some customers and attributed the delay in getting same day NAV to BSE StAR MF.

It is hereby clarified that on June 4th there was no system related issues on the BSE StAR MF platform. In fact, there was a lag in receiving funds from payment channel(s) which resulted in next day NAV for some customers.

Quantum Mutual Fund has filed a case against ICICI Securities with regards to the ongoing ICICI Securities delisting. This move comes after a class action suit was filed by a group of 100 minority shareholders over the delisting.

Quantum Mutual Fund, had voted against the proposed merger of ICICI Bank and ICICI Securities (I-SEC) during a shareholder meeting in March 2024 saying that the move would be detrimental to the interests of the fund house’s unitholders. The AMC is a minority shareholders and owns shares in ICICI Bank and ICICI Securities via its Quantum Long Term Equity Value Fund and Quantum ELSS Tax Saver Fund . At that time, the fund house had estimated that the merger will result in a net loss of at least Rs 6.08 crore to its unitholders. Read More

Tata Consultancy Services has launched TCS AI WisdomNext, a platform that aggregates multiple Generative Artificial Intelligence (GenAI) services into a single interface and enables organizations to rapidly adopt next-gen technologies at scale, lower costs and within regulatory frameworks. The industry leading platform is designed to remove barriers for customers to develop and launch business solutions, allowing for real-time experimentation across vendor, internal, and open-source LLM models.

Sensex Today | BSE Bank index rises 1%; Axis Bank, HDFC Bank, ICICI Bank top contributors

Shares of mining major Vedanta have rallied more than four percent over the past two sessions after a majority of its lenders approved its demerger plans.

"I am happy to inform you all that we have got 52 percent plus the additional percentage that we need to reach 75 percent. We have crossed that threshold as well. Most of the lenders have approved it," said a senior Vedanta official in a bondholder conference call. Read More

The Chester Crown Court, United Kingdom (UK) ordered a fine of GBP 11,00,000 on Tata Chemicals Europe Ltd., Company’s subsidiary in UK for safety incident which occurred in 2016.

This Order relates to an incident of 2016 when a contractor sustained injury at one of the sites at UK, subsequently passed away unexpectedly a few weeks after his discharge from the hospital.

The RBI policy aligns with expectations and is not expected to have a major impact on the market. Attention will now shift to the formation of the new cabinet and global cues. Currently, the market appears strong, and there is a good chance that the bullish momentum will continue. The 20-DMA of 22,600 is likely to provide support to the Nifty, while the high of 23,338 is a key hurdle.

Markets@12 | Sensex surges 1,300 pts, Nifty around 23,200

The Sensex was up 1,291.84 points or 1.72 percent at 76,366.35, and the Nifty was up 359.80 points or 1.58 percent at 23,181.20.

Wipro, Infosys, Bajaj Finance, LTIMindtree and Tech Mahindra were among top gainers on the Nfity, while losers were SBI Life Insurance, Bajaj Auto, Tata Consumer and Britannia Industries.

All the sectoral indices were trading in the green. BSE Midcap index up 0.7 percent and Smallcap index up 1.7 percent.

Stock Market LIVE Updates | Sensex 340 points away from record high

Sensex Today | Nifty 130 points away from record high

Sensex Today | Nifty Bank 150 points away from 50,000

Allcargo Terminals has entered into a Memorandum of Understanding (MOU) with Kences Container Terminal Limited (KCTL) for operating a KCTL container freight station at Chennai, for business/capacity expansion.

This capacity addition is in line with the Company’s asset light philosophy (no capex is involved) and will increase its presence and market share in the South Indian market.

Shares of real estate companies soared up to 7 percent after the Reserve Bank of India's Monetary Policy Committee kept policy interest rates unchanged at 6.5 percent, in-line with market watchers and economists' expectations. This was the eighth straight instance of the policy rates being left unchanged by the central bank. READ MORE

Robust growth provides the policy space for the RBI to keep the repo rate unchanged and focus on inflation. Nevertheless, the current growth-inflation dynamics favour shifting to a neutral policy stance at the next meeting. A normal or above-normal monsoon is expected to lower and contain food inflation. However, a slowdown in private consumption may impact growth and potentially undermine the recent revival in private capital expenditure. Adopting a neutral policy stance will allow the RBI to respond swiftly with a rate cut if warranted by the data. We anticipate rate cuts of 50-75 basis points in FY25.

Stock Market LIVE Updates | Nifty IT index top sectoral leader, surges over 3%

Stock Market LIVE Updates | Infosys, Wipro, SBI among top active stocks at this hour

Markets@11 | Sensex up 770 pts, Nifty above 23,000

The Sensex was up 773.74 points or 1.03 percent at 75,848.25, and the Nifty was up 229.40 points or 1.01 percent at 23,050.80. About 2518 shares advanced, 682 shares declined, and 95 shares unchanged.

All the sectoral indices were trading in the green.

BSE Midcap index up 0.6 percent and Smallcap index up 1.6 percent.

As anticipated, the Reserve Bank of India (RBI) maintained its key policy rates and liquidity stance unchanged during the June 2024 monetary policy review. The RBI revised its annual GDP growth estimate upward for the current year while keeping the retail inflation forecast steady. Several indications from the governor's speech suggest that the RBI is unlikely to commence rate cuts soon. The upward revision in growth, the expectation of a non-linear disinflationary process, and a clear signal that the RBI will not mirror the Federal Reserve's anticipated monetary policy easing, imply that a rate cut in 2024 is improbable.

However, with two of the six monetary policy committee members advocating for easing, and considering the RBI's expectation of continued falling inflation alongside the current high real interest rates, it appears that the RBI may not maintain the policy rates and liquidity tightening stance for an extended period. Today's policy is neutral for financial markets in the near term, but the medium-term implications are positive for both the equity and debt markets.

Foreign portfolio investment (FPI) flows surged in 2023-24 with net FPI inflows at USD 41.6 billion, since the beginning of 2024-25. However, foreign portfolio investors have turned net sellers in the domestic market with net outflows of USD 5.0 billion (till June 5).

Sensex Today | BSE Metal index rises 1%; Tata Steel, NMDC up 2% each

Housing and Urban Development Corporation Limited (HUDCO) has signed a Memorandum of Understanding (MoU) with India Infrastructure Finance Company Limited (IIFCL), a company wholly owned by Government of India, with the aim of reinforcing cooperation and collaboration to leverage respective strengths for extending Infrastructure CoFinancing, Refinancing, Project Management Consultancy Services and Capacity Building activities, subject to compliance with their respective mandates and policies.

Sensex Today | Nifty Auto index up 0.6%; Balkrishna Industries, Tube Investments of India among major gainers

The Board of Directors of Hero MotoCorp at its meeting held on June 06, 2024 has approved the purchase of additional shares of upto 2.2% of Ather Energy Private Limited, an associate company, from an existing shareholder for up to Rs 124 crore.

Sensex Today | Metal, Media outperform other sectoral indices

#1 Unsecured loan action in November data suggests there is moderation in these loans and advances
#2 Will try and assess if more measures are required

#1 FY25 Real GDP growth projection raised to 7.2 percent from 7 percent earlier
#2 Q1FY25 GDP growth target at 7.3 percent versus 7.1 percent earlier
#3 Q2FY25 GDP growth target raised to 7.2 percent from 6.9 percent
#4 Q3FY25 GDP growth target raised to 7.3 percent from 7 percent earlier
#5 Q4FY25 GDP growth target raised to 7.2 percent vs 7.0 percent earlier

We do consider the impact of monetary policy in advanced economies on Indian markets, our actions are primarily dependent and determined by the domestic growth-inflation conditions and the outlook.

It’s important to restate the position and reiterate this, so that there is clarity in the minds of market participants and other stakeholders, and as a result of which, they do not board the wrong bus.

#1 Q1FY25 CPI inflation forecast unchanged at 4.9 percent
#2 Q2FY25 CPI inflation forecast unchanged at 3.8 percent
#3 Q3FY25 CPI inflation forecast unchanged at 4.6 percent
#4 Q4FY25 CPI inflation forecast unchanged at 4.5 percent

Sensex Today | Nifty Realty index up 0.6%; Sobha, Sunteck Realty, Brigade Enterprises up 2-7%

SEBI issues show cause notice to PB Fintech's Chairman & CEO Yashish Dahiya over USD 2 mn investment by Dubai Unit

The Board of Directors of Hero MotoCorp at its meeting held on June 06, 2024 has approved the purchase of additional shares of upto 2.2% of Ather Energy Private Limited, an associate company, from an existing shareholder for up to Rs 124 crore.

Gold prices held steady on Friday, and were on track for their first weekly gain in three as traders stepped up bets that the U.S. Federal Reserve will start cutting rates soon, sending the dollar and Treasury yields lower.

Spot gold was little changed at $2,377.13 per ounce. Bullion gained about 2% so far this week.

U.S. gold futures rose 0.2% to $2,396.

Sensex Today | Nifty Bank index up 0.2%; Bandhan Bank, Federal Bank, AU Small Finance Bank among major gainers

The Sensex was up 534.55 points or 0.71 percent at 75,609.06, and the Nifty was up 161.20 points or 0.71 percent at 22,982.60. About 2408 shares advanced, 644 shares declined, and 89 shares unchanged.

HDFC AMC has re-appointed Navneet Munot as Managing Director & Chief Executive Officer of the company for a further period of 5 years with effect from July 1, 2024 upto June 30, 2029

The Great Eastern Shipping Company Limited (G E Shipping) has contracted to buy a Medium Range product tanker of about 49,990 dwt. The 2013 built vessel is expected to join the company’s fleet by Q2 FY25.

The company’s current fleet stands at 43 vessels, comprising 29 tankers (6 crude carriers, 19 product tankers, 4 LPG carriers) and 14 dry bulk carriers aggregating 3.41 Mn dwt. The Company’s current capacity utilization is close to 100%.

The proposed ship will be financed entirely from internal accruals. The purpose of the acquisition is modernization and expansion of the fleet.

Shares of RITES gained on June 7 as the company received a Letter of Award from Tata Steel Limited for loco hiring along with operation and maintenance. The order is worth Rs 39.63 crore (plus GST), the company informed in a regulatory filing.

The order has to be executed by April 20, 2027. Notably, RITES recently reported a mixed set of numbers for the quarter ended March 2024. Read More

In the near-term, the market is likely to be weighed down by the huge FII selling which has touched Rs 24960 crores cumulatively during the last three days. Therefore, the largecaps in sectors like financials and IT where FIIs have huge assets under management may underperform. This trend will change when FIIs turn buyers, which is inevitable. Meanwhile long-term investors can accumulate these high quality largecaps where margin of safety is high in an otherwise highly valued market.

There is excessive speculative activity in stocks where the floating stock is very low. Retail investors venturing into these speculative activities is highly risky.

Today’s monetary policy meet is not expected to impact the market since any rate action by the MPC is unlikely.

Sensex Today | BSE Smallcap index up 1.3%; Moschip Technologies, Mastek, Five-Star Business Finance up 10-12%

Welspun Enterprises had filed a suit before Delhi High Court against Indian Oil Corporation Limited (IOCL) & Ors. in the year August, 2018 in relation to Panipat Naphtha Cracker Project (EPCC-12A Project).

During pendency of suit, parties agreed to amicably settle aforesaid matter through mediation proceedings conducted by Delhi High Court Mediation & Conciliation Centre.
The matter has been settled with IOCL shall pay to the company Rs 15,96,06,711 (principal amount) and interest of Rs 7,71,42,515 towards full and final settlement of all its claims related to the EPCC-12A Project.

It is further agreed between the parties that the settlement amount shall be paid in full on or before June 14, 2024.

Post this settlement all disputes have been settled and the Company shall withdraw suit filed before Hon’ble Delhi High Court.

The company expects to get ~ Rs 23.67 crore on or before June 14, 2024, and it will be accounted in Q1FY25 financials as a income.