The benchmark indices continued to trade with decent gains in mid-morning trade. The Nifty traded above the 18,750 mark. Metal stocks extended gains for the second consecutive trading session. Trading could be volatile due to expiry of weekly index options on the NSE.
At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 146.13 points or 0.23% to 63,289.09. The Nifty 50 index rose 32.45 points or 0.17% to 18,758.85.
In the broader market, the S&P BSE Mid-Cap index declined 0.24% while the S&P BSE Small-Cap index gained 0.15%.
The market breadth was positive. On the BSE, 1,846 shares rose and 1,500 shares fell. A total of 152 shares were unchanged.
RBI Maintains Status Quo On Rates:
The Reserve Bank of India (RBI) monetary policy committee (MPC) has voted unanimously to keep the repo rate unchanged at 6.5%.
The standing deposit facility (SDF) rate remains unchanged at 6.25% and the marginal standing facility (MSF) rate and the Bank Rate at 6.75%.
The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth.
These decisions are in consonance with the objective of achieving the medium term target for consumer price index (CPI) inflation of 4% within a band of +/- 2 per cent, while supporting growth, RBI stated.
The central bank has cut inflation aim to 5.1% from 5.2% forecast in April policy.
Meanwhile, the RBI Governor Shaktikanta Das said real GDP growth is projected at 6.5% for FY24, ? Q1 at 8% , Q2 at 6.5%, Q3 at 6% and Q4 at 5.7%.
IPO Update:
The initial public offer (IPO) of IKIO Lighting received bids for 16.22 crore shares as against 1.52 crore shares on offer, according to stock exchange data at 11:18 IST on Thursday (8 June 2023). The issue was subscribed 10.66 times.
The issue opened for bidding on Tuesday (6 June 2023) and it will close on Thursday (8 June 2023). The price band of the IPO is fixed at Rs 270-285 per share. An investor can bid for a minimum of 52 equity shares and in multiples thereof.
Buzzing Index:
The Nifty Metal index rose 0.86% to 6,109.55. The index rallied 2.38% in two trading sessions.
JSW Steel (up 4.35%), APL Apollo Tubes (up 1.92%), Jindal Steel & Power (up 1.81%), Tata Steel (up 1.26%), Steel Authority of India (up 1.06%), National Aluminium Company (up 0.95%), NMDC (up 0.87%), Vedanta (up 0.63%), Jindal Stainless (up 0.53%) and Hindalco Industries (up 0.38%) advanced.
On the other hand, Welspun Corp (down 1.44%) and Hindustan Zinc (down 0.18%) edged lower.
Stocks in Spotlight:
KPI Green Energy rose 1.75% after the company received commissioning certificates from Gujarat Energy Development Agency (GEDA) for 26.10 MW wind-solar hybrid power project under independent power producer (IPP) segment. The company received certificates from GEDA for 26.10 MW wind-solar hybrid power project comprising 16.10 MW wind and 10 MW solar capacity at Bhungar site in Bhavnagar, Gujarat.
PTC Industries jumped 5.20% after the company said it received listing and trading approval from the National Stock Exchange (NSE). The company's equity shares will be listed on NSE's main board with effect from 9 June 2023 under symbol PTCIL.
Global Markets:
Most of the Asian stocks declined after a surprise interest rate hike by Bank of Canada revived worries that U.S. rates could stay higher for longer and the Federal Reserve could remain hawkish when it meets next week. The Bank of Canada (BoC) surprised markets on Wednesday by hiking its overnight rate to a 22-year high of 4.75%.
Japan's economy grew an annualized 2.7% in the first quarter of the year, expanding further than earlier estimates of 1.6% made last month, government data showed, as the economy continues to see robust spending.
Overnight in the US, the three main equity indices finished mixed as the Dow Jones gained, while S&P500 and Nasdaq closed in negative territory on Wednesday as investors took profits after a recent megacap stocks run and ahead of key economic and policy events next week.
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