Closing Bell: Nifty above 22,600, Sensex gains 2,303 pts; all sectors in the green

Indian benchmark indices erased some of the previous day losses and ended higher with Nifty back above 22,600. The Sensex was up 2,303.19 points or 3.20 percent at 74,382.24, and the Nifty was up 735.80 points or 3.36 percent at 22,620.30.

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.

Markets experienced a recovery, gaining over 3% after a significant decline. The tone was subdued initially, but recovery in heavyweight stocks helped the Nifty index gradually climb higher throughout the day, eventually closing near the day's high at 22,620.30. The metal, auto, banking, and FMCG sectors were the top performers. Broader indices also regained some lost ground, each rising around 4%.

With the major event now behind us, we anticipate a gradual reduction in volatility. The index rebound is encouraging, but sustaining above the 22,600 level is crucial for a move towards 23,000. Conversely, the 21,800-22,000 range should provide support in case of profit-taking. We continue to favor defensive sectors such as FMCG, IT, and pharma, and recommend being selective in other sectors.

Nifty has shown a sharp recovery, rebounding to touch its 100-day moving average placed at 21786 and closing above its 21-day EMA. For a bullish or bearish outlook, it's crucial to monitor key levels.

If Nifty sustains above its 21-day EMA or 22500, a buy-on-dip approach is advisable. Currently, 22400 acts as support, while 22800 serves as the initial resistance for the Nifty index.

The Bank Nifty index saw a sharp recovery from its 200-day moving average, closing above its rising trendline and 21-day EMA. This suggests a buy-on-dip strategy with a stop-loss at 47500. The immediate support level is 47800, while resistance is at 49500.

Indian benchmark indices erased some of the previous day's losses and ended higher, with Nifty closing back above 22,600. After a sharp correction following the Lok Sabha election results, where it fell 8.5%, the Nifty surged 6.16% from yesterday's low, showing a strong recovery following Prime Minister Modi's speech. The Sensex increased by 2,303.19 points or 3.20 percent, closing at 74,382.24, while the Nifty rose by 735.80 points or 3.36 percent, ending at 22,620.30.

Nifty's strong recovery from yesterday's low included a gap-up opening of 240 points. The sharp rebound in the second half of the session, closing above the 22,600 level, indicates a potential bullish reversal. If the price closes above the 22,800 level, it could potentially rise to 23,000 and above in the coming days. On the downside, 22,000 and 21,800 will act as immediate support levels.

All BSE Sensex and Nifty50 stocks ended in the green. All sectoral indices finished positively, with Auto, Bank, FMCG, Metal, Telecom, and Media sectors up 4-6 percent. The BSE Midcap index rose 4 percent, while the Smallcap index gained 3 percent. India VIX dropped by 29.4 percent intraday and settled at 18.885. According to the options data, the highest open interest (OI) on the call side is at the 22,800 strike price, followed by the 23,000 strike price. On the put side, the highest OI is at the 22,200 strike price.

Indian market exhibited a spirited recovery driven by broad based buying across various sectors, as political stability appears assured. However, attention will remain on the formation of the government and the forthcoming RBI policy meeting. The market does not expect any change in RBI’s policy stance given persistent high food inflation, and an expectation of an increase in government spending, which has led to a notable traction in FMCG stocks.

Indian rupee ended 15 paise higher at 83.37 per dollar on Wednesday against Tuesday's close of 83.52

Indian benchmark indices erased some of the previous day losses and ended higher with Nifty back above 22,600.

The Sensex was up 2,303.19 points or 3.20 percent at 74,382.24, and the Nifty was up 735.80 points or 3.36 percent at 22,620.30. About 2348 shares advanced, 1008 shares declined, and 74 shares unchanged.

Except BPCL and L&T, all other BSE Sensex and Nifty50 stocks ended in the green.

All the sectoral indices ended on a positive note with Auto, Bank, FMCG, Metal, Telecom and Media up 4-6 percent.

The BSE midcap index rose 4 percent while the smallcap index gained 3 percent.

Shekhawati Poly-Yarn approved the proposal of consolidation of equity shares in ratio 10:1 i.e. 10 equity shares of face value of Re 1 each consolidate into 1 Equity shares of face value Rs 10 each, resulting into consolidation of 40,00,00,000 equity shares of the nominal value of Re 1 each in the authorized share capital of the company into 4,00,00,000 equity shares of Rs 10 each and any other matter incidental thereto.

Shares of Telugu Desam Party- (TDP) related firms like Heritage Foods and Amara Raja Energy & Mobility soared up to 20 percent on June 5. The sharp rally came after news reports of TDP chief Chandrababu Naidu is poised to become Andhra Pradesh Chief Minister after the regional party's landslide victory in election and he might support National Democratice Alliance (NDA).

Prime Minister Narendra Modi has secured a third term, but the BJP is relying on the support of other parties in his coalition - JD(U) chief Nitish Kumar and TDP's chief Chandrababu Naidu, falling 32 seats short of the 272 majority mark. Read More

Markets@3 | Sensex, Nifty at day's high

The Sensex was up 2,362.52 points or 3.28 percent at 74,441.57, and the Nifty was up 753.90 points or 3.44 percent at 22,638.40. About 2319 shares advanced, 1020 shares declined, and 80 shares unchanged.

Oil prices are down below $73 for WTI and below $77 for Brent crude, weighed by expectation that oil market may move into supply-surplus towards the end of the year after OPEC+ decision to phase out additional output cuts by September, near-record U.S. oil output and rising inventories globally amid weaker demand.

In the session ahead, focus will be on the U.S. weekly inventory data from EIA, which may give some clues on the demand front in the current summer driving season. Technically, trend remains down till below 6180, downside prices may test 6060/ 5980 levels.

Sensex Today | Nifty CPSE index gains 2%; Container Corporation, PFC, ONGC up 4-5%

Indian Rupee appreciated by 0.14% today as domestic markets recovered some losses of the previous day and reports of intervention by the RBI. The RBI reportedly sold Dollar and prevent a sharp fall in the Rupee. However, a recovery in the US Dollar and disappointing macroeconomic data capped sharp gains. India’s services PMI fell to 60.20 in May 2024 vs 60.80 in April 2024 and forecast of 61.50. US Dollar fell on Tuesday amid cooling labour market. US JOLTS job openings fell to 8.06 million in April 2024 versus 8.566 in March 2024.

We expect Rupee to trade with a slight negative bias on recovery in the US Dollar and selling pressure from foreign investors. However, calming of market nerves as NDA is likely to come back to power despite a weaker than expected mandate may support the Rupee at lower levels. A weak tone in global crude oil prices and any further intervention by the RBI may also support the Rupee. Traders may take cues from ADP non-farm employment and ISM services PMI data from the US. Investors may remain cautious ahead of RBI’s monetary policy later this week. USDINR spot price is expected to trade in a range of Rs 83 to Rs 83.80.

The Janata Dal-United will continue to be part of the Bharatiya Janata Party-led National Democratic Alliance (NDA), party spokesperson Arvind Nishad has confirmed in an exclusive interview with CNBC-TV18.

Nishad's comments come as both the NDA and the INDIA bloc are exploring various alliances to form a government at the Centre. Following the 2024 Lok Sabha election results, JD(U) leaders faced a wave of memes which highlighted JD(U) chief Nitish Kumar's history of frequently switching alliances.

Dispelling any speculation about the party's loyalty to the NDA, Nishad said in the interview: "We fought the election as part of the NDA. We will remain part of the NDA in the future, too." (Read more)

Sensex Today | All BSE sectoral indices gain; Auto, FMCG, Metal up 4% each

Sensex Today | Midcap index outperforms main indices

Sensex Today | Nifty Auto index hits all-time high

Markets@2 | Sensex, Nifty extend gains; auto, FMCG shine

The Sensex was up 1,910.00 points or 2.65 percent at 73,989.05, and the Nifty was up 612.20 points or 2.80 percent at 22,496.70.

IndusInd Bank, M&M, Adani Ports, Hero MotoCorp and Tata Consumer were among the top gainers on the Nifty, while losers included BPCL and L&T.

All the sectoral indices are trading in the green with FMCG index up 4.5%. 

BSE Midcap index rises 4 percent and Smallcap indices up 2.5 percent.

Brokerage Call | Jefferies overweight on private banks

#1 PM Modi losing simple majority was unexpected
#2 Our base case remains a coalition government led by PM Modi
#3 Continue to believe in housing-led capex upcycle
#4 2004 example shows that extreme market reaction could be buying opportunity
#5 Overweight on private banks, consumer staples, auto OEMs
#6 Cut overweight on real estate, industrials, & PSUs

Tata Motors' JLR UK sales up 29 percent at 6,093 units in May 2024 against 4,732 units, in May 2023

Sensex Today | BSE Telecom index rises 5%; Vodafone Idea, Optiemus Infra, HFCL up 8-13%

Mutual funds lost a whopping Rs 90,000 crore in market value in public sector firms over the last two sessions due to sharp correction in Indian markets due to election outcome.

As of June 3, mutual funds held shares worth over Rs 5.71 lakh crore in 84 state-run firms. After the unexpected election results, this value dropped to Rs 4.83 lakh crore. Read More

Sensex Today | Nifty FMCG index outperform other sectoral indices

Sensex Today | Main NSE indices gain between 2.5-3.5%

The company has secured a work order worth Rs 56.68 crore from AMISP provider for the supply of SMC meter enclosures for smart meters for the projects in PVVNL and MVVNL.

HDFC Securities tells clients a glitch caused by 'server downtime' has disrupted services, and the issue is actively being resolved

The technology consulting and digital solutions company has expanded its partnership with SAP to deliver innovations for complex manufacturing industries.

The company has entered into a Power Purchase Agreement and Share Subscription and Shareholders’ Agreement for the acquisition of 5.03% equity shares in Onevolt Energy for Rs 9.6 crore.

Sensex Today | BSE Healthcare index gains more than 3%; Kopran, Shilpa Medicare , AstraZeneca Pharma up 7-11%

SpiceJet is looking to raise another $250 million by August, and plans to increase capacity through lease of aircraft, Chairman Ajay Singh said on June 5

Over the next two quarters, the airline plans to 'clean up it's balance sheets', Singh added. Read More

Sensex Today | Nifty Information Technology index jumps 2.5%; Persistent Systems, Mphasis, L&T Technology up 4-6%

The company has entered into a Shareholders’ Agreement & Share Purchase Agreement with Saira Asia Interiors & its existing shareholders for the acquisition of a 51% shareholding in Saira Asia Interiors for Rs 9 crore.

Sensex Today | Nifty Bank index rises 2%; Kotak Mahindra Bank, Bandhan Bank among major gainers

The company has commenced commercial production of downhole pumps in a new manufacturing facility at Greater Noida.

Sensex Today | BSE Metal index up 2%; Vedanta, SAIL up 4% each

Animesh Kumar has resigned as President – HR & Transformation of the company to pursue interests outside the organization. Dheeraj Jaggi will assume the role of Acting Chief Human Resources Officer.

ECL Finance Limited, a subsidiary of Edelweiss Financial Services, has received the assessment order and demand notice o for the assessment year 2018-19 and a tax demand of Rs 16.69 crore.

Also the other subsidiary, Edelweiss Rural & Corporate Services, has, received the assessment order and demand notice for the assessment year 2020-21 and a tax demand of Rs 70 lakhs (including interest) on account of certain disallowances.

Sensex Today | Nifty Media index rises 3%; Sun TV Network, PVR Inox top gainers

The company has received a Letter of Award from Oil and Natural Gas Corporation (ONGC), Kakinada, for the hiring of DPDU (GDU) for processing gas for 10 months. The total estimated value of the award is Rs 56 crore.

#1 Downgrade BEL from buy to outperform, target raised to Rs 294 per share
#2 Retain outperform on HAL, target Rs 4,731 per share
#3 Expensive valuations leave little space for execution error
#4 Expect Modi govt to continue to walk-the-talk for defence
#5 To execute $43 bn in Indian made products approved by DAC during FY24

One Point One Solutions has secured a strategic client win with a pioneering medical device company based in Tampa, Florida.

Markets@12 | Sensex, Nifty gain nearly 2% each

The Sensex was up 1,254.16 points or 1.74 percent at 73,333.21, and the Nifty was up 386.00 points or 1.76 percent at 22,270.50. About 2011 shares advanced, 1246 shares declined, and 99 shares unchanged.

Lupin's European hub entity, Lupin Atlantis Holdings SA, has completed the acquisition of two well-known brands, AaraneTM in Germany and NalcromTM in Canada and the Netherlands, along with the associated trademark rights, from Sanofi.

Markets are expected to remain volatile in the short term, even as the NDA-led BJP is set to form the government for the third time, making history. Given the known factors, it's advisable to allow some time for the markets to stabilize following the unexpected election outcome. Traders and investors should be cautious and consider focusing on defensive and non-government-driven sectors such as FMCG, Telecom, and Pharma stocks.

The upcoming budget and quarterly earnings reports will be crucial events that could influence market movements. FIIs are likely to reconsider their positions, and DII money will be tested in the short term, which is a cause for concern.

Technically, the upside appears limited in the short term, while the downside may develop in phases. The key level to watch is the psychological 21,000 mark; if the market closes below this level, further selling could drive it down to test 20,200.

Reserve Bank of India (RBI) approved the proposed acquisition of 70% shareholding in Kotak Mahindra General Insurance Company Limited by Zurich Insurance Company by way of a combination of primary and secondary acquisitions, for a total consideration of approximately Rs 5,560 crore.

#1 Think long-term; don't get carried away with the narrative
#2 Election outcome was a shock; but it's not a crisis like situation for the market
#3 Believe it's a great buying opportunity
#4 Short-term investors panicked as they thought something has changed for the long term
#5 India is a buy on dips market
#6 Markets will settle down; sector rotation may happen for a while
#7 Development agenda won't change
#8 Premature to say that pace of reforms will slow down
#9 Stay invested; if you move out you will miss the bus
#10 Defence can correct more but it hasn't entered the neglected zone
#11 See buying opportunity in consumption, metals & cement
#12 Would wait for the right opportunity to buy PSUs

Tata Motors Finance, a step-down subsidiary of Tata Motors, will be merged with Tata Capital, subject to regulatory approvals including NCLT. Further, the board has approved the incorporation of a wholly-owned subsidiary with the proposed name as TML Commercial Vehicles.

Stock Market LIVE Updates | SBI, HDFC Bank most active stocks at this hour

Stock Market LIVE Updates | Hero Moto, HUL, M&M top Nifty gainers, aiding cap downside

Stock Market LIVE Updates | Nifty FMCG, Nifty Auto indices top sectoral leaders at this hour

Shares of Ztech India made a weak start on its stock market debut on June 5 after listing at Rs 100, a discount of 9.1 percent over the issue price of Rs 110 on the NSE SME platform. The listing gains miss grey market estimates due to a weak market after the a rather weak performance by BJP-led National Democratic Alliance. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day. READ MORE

Garden Reach has entered contract with the Bangladesh Inland Water Transport Authority (BIWTA) for the Procurement of 01 (One) No. Trailing Suction Hopper Dredger (Hopper Capacity 1000 m3 ) with spare parts.

The bank said the board of directors will meet on June 11 to consider long-term fund raising in single/multiple tranches of up to $3 billion through a public offer or private placement of senior unsecured notes in US Dollar or any other major foreign currency during FY 2024-25.

Online travel aggregator Le Travenues Technology, the parent company of ixigo, has set a price band of Rs 88-93 a share for its initial public offering that will open for subscription on June 10.

The anchor bidding will start on June 7 and the issue will close on June 12.

The issue comprises a fresh issue of Rs 120 crore and an offer for sale of upto 66.68 million shares that comes to Rs 620 crore on the upper price band. The total issue size will be at Rs 720 crore. Read More

Sensex Today | Nifty Auto index up 2%; Hero MotoCorp, Balkrishna Industries top gainers

Gold prices rose slightly on Wednesday helped by lower Treasury yields, but were stuck in a tight range as investors waited for more U.S. data to gauge the Federal Reserve's next step on monetary policy.

Spot gold was up 0.3% at $2,334.81 per ounce, as of 0312 GMT, trading in a narrow $11 range after prices fell 1% in the previous session.

U.S. gold futures rose 0.3% to $2,354.50.

The short-term trajectory of the Stock Market displays heightened volatility with a bearish inclination. For Bank Nifty, 46500 is expected to act as a key support level today. If it breaks below this level, it could intensify bearish sentiment. In Bank Nifty, the 47000 Call strike has an OI of around 8 lakh shares, while the Put side at the same strike has a significant OI of about 10 lakh shares.

For the Nifty index, the immediate support level rests at 21800. If it remains below this level, the likelihood of continued weakness is anticipated. Conversely, the 22200 mark is expected to pose as an immediate resistance zone. Once the volatility triggered by the election results settles, the market could stabilize and define a clearer direction for the near future.

Sensex Today | BSE PSU Index sheds more than 3%; Engineers India, Bharat Dynamics drag 10% each

#1 Government confident that airport development in India will continue
#2 India has 453 potential airstrips in the country
#3 Government is in discussion on which airstrips need to be developed
#4 Paperwork around Cape Town Convention Bill is ready

Markets@10 | Sensex, Nifty trade higher

The Sensex was up 52.96 points or 0.07 percent at 72,132.01, and the Nifty was up 12.50 points or 0.06 percent at 21,897.00. About 1143 shares advanced, 1929 shares declined, and 91 shares unchanged.

Top Sectoral Gainers: Auto, FMCG, IT, Healthcare, Telecom, Media
Top Sectoral Losers: Capital Goods, Oil & Gas, Metal, Power, Realty, 

BSE Midcap index trade flat, while smallcap index down 1 percent

Sensex Today | Telecom spectrum auctions postponed to June 25

Telecom spectrum auctions supposed to begin on June 6 has postponed to June 25

Sensex Today | BSE FMCG index rises 3%; Heritage Foods, Emami top contributors

Sportskeeda Inc., a wholly owned subsidiary of Absolute Sports Private Limited, a material subsidiary of Nazara Technologies, has entered into an Asset Purchase Agreement with Daniel J. Kroll, the founder and owner of Soap Central, for the acquisition of all the Intellectual Property Rights including but not limited to Domain Rights, trademark, content, website, software codes etc. of “Soap Central”, for an aggregate consideration of USD 1,400,000.

McNally Bharat Engineering, Arihant Institute, Naturo Indiabull, Sandu Pharmaceuticals, Super Crop Safe, Toyam Sports

Sensex Today | BSE Capital Goods index shed 3.5%; Schaeffler India, Suzlon Energy, Bharat Electronics fall 5% each

#1 Client Base up 3.7 percent MoM & up 63.3 percent YoY at 23.83 million
#2 Number of orders up 17.2% MoM & up 75.2% YoY at 158.72 million

Novelis Inc announced the postponement of its initial public offering due to market conditions. Novelis will continue to evaluate the timing of the offering in the future.

Despite mixed global cues, the Indian indices opened higher on June 5 with Nifty around 21,100.

The Sensex was up 670.21 points or 0.93 percent at 72,749.26, and the Nifty was up 209.00 points or 0.96 percent at 22,093.50. About 1714 shares advanced, 678 shares declined, and 95 shares unchanged.

ONGC, M&M, BPCL, HUL, Tata Steel were among major gainers on the Nifty, while losers were Hindalco, L&T, Power Grid Corp, Axis Bank and Apollo Hospitals.

The benchmark Sensex and Nifty indices are expected to open higher on June 5, following GIFT Nifty trends indicating a gain of 95.5 points (0.44 percent) for the broader index.

Nifty can find support at 21,800 followed by 21,700 and 21,500. On the higher side, 22,000 can be an immediate resistance, followed by 22,150 and 22,200.

The charts of Bank Nifty indicate that it may get support at 46,700, followed by 46,500 and 46,300. If the index advances further, 47,300 would be the initial key resistance, followed by 47,500 and 47,700.

A huge selling was seen from Foreign institutional investors (FIIs) on June 4 as they sold Indian equities worth Rs 12,436.22 crore , while domestic institutional investors also sold equities worth Rs 3,218.98 crore on the same day.

INDIAVIX was positive yesterday by 27.75% yesterday and is currently trading at 26.7475.

Yesterday we witnessed huge volatility in markets on the day of election results. FII’s has sold in high quantities as the election results were not as per the exit polls released on Saturday. Traders should trade with strict stop loss as we can witness high volatility in the markets.

In a dramatic downturn, Nifty 50 recorded its biggest single-day plunge in over four years, falling 6%, as bears took control of Dalal Street following the BJP's failure to secure a clear majority in the elections.

The Narendra Modi-led BJP leads with 293 seats, but concerns over the new government's ability to implement bold policies weighed heavily on the market.

GIFT Nifty remains subdued despite Modi's victory speech, with technical indicators pointing to a trading range of 21000-22500. Meanwhile, WTI crude oil futures dropped to a four-month low, offering some relief.

Eyes are now on the RBI's three-day MPC meeting.

Preferred trades: Nifty to sell at 22200-22500 with targets at 21500/21000, and Bank Nifty to sell at 47500-47700 with targets at 46077/45701. Bearish on Dixon Technologies, CUB, and Exide.

Indian rupee opened marginally higher at 83.46 per dollar on Wednesday versus Tuesday's close of 83.52.

Benchmark indices are trading higher in the pre-opening session.

The Sensex was up 1,031.36 points or 1.43 percent at 73,110.41, and the Nifty was up 131.10 points or 0.60 percent at 22,015.60.

Small Cap World Fund Inc sold 54,02,312 equity shares in NCC at an average price of Rs 265.13 per share, amounting to Rs 143.2 crore.

Zee Entertainment Enterprises will remain in the NSE F&O ban on June 5.

#1 PM Modi losing simple majority was unexpected
#2 Our base case remains a coalition government led by PM Modi
#3 Continue to believe in housing-led capex upcycle
#4 2004 example shows that extreme market reaction could be buying opportunity
#5 Overweight on private banks, consumer staples, auto OEMs
#6 Cut overweight on real estate, industrials, & PSUs

The technology services and consulting company has partnered with Zscaler to introduce Wipro Cyber X-Ray, an AI-assisted decision support platform.

#1 Do not foresee a dismissal of macro prudence
#2 Supply-side reforms may continue, but market reforms will be difficult
#3 Do not expect material impact on monetary policy
#4 Reforms in India have generally survived the test of politics
#5 Focus will be on the final budget to assess policy direction