Domestic equity barometers ended a volatile session near the flat line with some positive bias on Tuesday, rising for the third consecutive session. Realty, auto and healthcare stocks advanced while IT, consumer durables and PSU bank shares were under pressure.
After opening higher, the Nifty slipped into the negative terrain in the morning trade. It hit the day's low of 18,531.60 in early afternoon trade. However, the index gradually recovered and bounced back in the late trade to end near the flat line.
As per provisional closing data, the barometer index, the S&P BSE Sensex rose 5.41 points or 0.01% to 62,792.88. The Nifty 50 index added 5.15 points or 0.03% to 18,599.
The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index gained 0.29% while the S&P BSE Small-Cap index advanced 0.42%.
The market breadth was positive. On the BSE, 1,991 shares rose and 1,537 shares fell. A total of 131 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 2.17% to 11.38.
The three-day meeting of the Monetary Policy Committee of the Reserve Bank of India (RBI) begins today. The MPC decision will be announced by RBI Governor Shaktikanta Das on the last day of the meeting, which is Thursday, 8 June 2023.
NSE Circular:
The National Stock Exchange of India (NSE) has announced that the expiry day of Bank Nifty futures and options (F&O) has been changed from existing Thursday to Friday.
The above shall be effective from trade date 7 July 2023 Friday and accordingly, all existing contracts with Thursday expiry will be revised to Friday on 6 July 2023 EOD (end of day),? NSE said.
The first Friday expiry will be on 14 July 2023.
IPO Update:
The initial public offer (IPO) of IKIO Lighting received bids for 1.80 crore shares as against 1.52 crore shares on offer, according to stock exchange data at 15:30 IST on Tuesday (6 June 2023). The issue was subscribed 1.19 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 IT index fell 1.88% to 28,689.05, extending losses for the third straight session. The index slipped 2.57% in three trading sessions.
Persistent Systems (down 4.36%), Coforge (down 3.76%), Mphasis (down 3.64%), Tech Mahindra (down 2.01%), L&T Technology Services (down 1.96%), Infosys (down 1.86%), Tata Consultancy Services (down 1.59%), Wipro (down 1.04%), LTIMindtree (down 0.73%) and HCL Technologies (down 0.69%) edged lower.
Investor sentiment for IT companies was negatively impacted by the US Fed's continued rate hikes, which tightened the labour market even as inflation remains elevayed. Even the plummeting rupee, which is typically good news for IT companies, has failed to energise the investment base.
The tightness in the labour market was clearly visible in the recently released US Service Sector PMI figures.
Stocks in Spotlight:
Bajaj Finserv advanced 1.25%. The company announced the launch of its mutual fund business under Bajaj Finserv Mutual Fund. The mutual fund will start rolling out products within the next 30 days, starting with Fixed Income category.
State Bank of India (SBI) shed 0.17%. The largest PSU bank said that the meeting of the board of directors of the bank is scheduled on 9 June 2023 to consider and approve raising funds during FY 24 through private placement mode by way of issuance of debt instruments (including capital instruments) in INR and /or foreign currency.
Larsen & Toubro (L&T) rose 0.48%. The company said that the Buildings and Factories (B&F) Business of L&T Construction has secured 'significant' EPC orders from a developer to construct commercial towers at two locations in Mumbai. As per L&T's classification, the value of the said contract lies between Rs 1,000 crore to Rs 2,500 crore.
SBI Cards and Payment Services added 0.68%. The board of directors of the company has approved raising of funds by way of issuance of non-convertible debentures (NCDs) aggregating to Rs. 3,000 crore in one or more tranches, on private placement basis.
Sonata Software skid 0.14% after the company announced that it has announced a strategic partnership with SAP Commerce to drive digital innovation and help businesses to accelerate their digital transformation journey. The partnership aims to offer seamless and personalized experiences to customers across various touchpoints and channels.
Nelco surged 12.53% after the company has entered into the agreement to acquire 9.09% stake in Piscis Networks for total consideration of Rs 99.99 lakh.
JK Cement gained 0.93% after the company signed share purchase agreement to acquire 100% stake in Toshali Cement (Toshali) for a total consideration of Rs 157 crore. The acquisition will help the company expand its footprint into the Eastern Region. The transaction is subject to fulfillment of certain condition presidents and may likely complete upto 6 months. Post acquitision, Toshali will become a subsidiary of the company.
B L Kashyap and Sons jumped 5.36% after the EPC company announced that it has secured new order aggregating to Rs 147 crore.The order comprises civil & structural work & all associated work for Nzuri Pune Knowledge Park project. The project is expected to be completed within 27 months from the date of award. The company said the current order book stood at approximately Rs 2,774 crore.
Global Markets:
Markets in Europe declined across the board while Asian stocks ended mixed on Tuesday as downbeat sentiment prevailed in markets across the globe. South Korea's markets are closed Tuesday for a holiday.
European Central Bank President Christine Lagarde said Monday there were ?signs of moderation? in core inflation in the euro zone, but emphasized that it was too early to call a peak. The latest data showed inflation easing more than expected for May to 6.1%, but that figure remains well above the 2% target.
The ECB has hiked rates a total of 375 basis points in the past year in an attempt to tackle soaring inflation, and money markets are believed to have priced in another two 25-basis-point rate increases for the coming meetings, media reports stated.
Meanwhile, manufacturing orders in Germany fell by 0.4% in April, according to the country's Federal Statistical Office. New industrial orders were down 9.9% compared to the same month in 2022.
The manufacturing of machinery and equipment and miscellaneous vehicle construction were noticeable drags on the new order figure.
Euro Zone retail sales for the month of April 2023 will be announced today.
US stocks fell on Monday as investors weighed whether the US central bank might pause rate hikes after growth slowed in the services sector.
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