The frontline indices ended with modest gains on Wednesday, rising for the fourth consecutive trading session. The Nifty closed above the 18,700 level. All the sectoral indices on the NSE ended in the green with realty, metal and FMCG stocks gaining the most.
As per provisional closing data, the barometer index, the S&P BSE Sensex, was up 350.08 points or 0.56% to 63,142.96. The Nifty 50 index gained 127.40 points or 0.68% to 18,726.40. In four consecutive sessions, the Sensex advanced 1.14% while the Nifty climbed 1.29%.
The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 1.09% while the S&P BSE Small-Cap index advanced 1.15%.
The market breadth was strong. On the BSE, 2,293 shares rose and 1,270 shares fell. A total of 135 shares were unchanged.
The three-day meeting of the Monetary Policy Committee of the Reserve Bank of India (RBI) began on Tuesday, 6 June 2023. The MPC decision will be announced by RBI Governor Shaktikanta Das on the last day of the meeting, which is Thursday, 8 June 2023. The RBI is reportedly likely to keep the policy repo rate unchanged, drawing comfort from the gradual easing of inflation.
Economy:
According to World Bank report, India will remain the fastest-growing economy (in terms of both aggregate and per capita GDP) of the largest EMDEs.
Growth in India is expected to slow further to 6.3% in FY2023/24 (April-March), a 0.3% point downward revision from January. This slowdown is attributed to private consumption being constrained by high inflation and rising borrowing costs, while government consumption is impacted by fiscal consolidation.
Growth is projected to pick up slightly through FY2025/26 as inflation moves back toward the midpoint of the tolerance range and reforms payoff.
IPO Update:
The initial public offer (IPO) of IKIO Lighting received bids for 8.35 crore shares as against 1.52 crore shares on offer, according to stock exchange data at 15:27 IST on Wednesday (7 June 2023). The issue was subscribed 5.49 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 Realty index rose 1.59% to 506.30, extending gains for the sixth straight session. The index jumped 6.54% in six trading sessions..
Phoenix Mills (up 6.26%), Macrotech Developers (up 3.16%), Mahindra Lifespace Developers (up 1.7%), Godrej Properties (up 1.69%), Prestige Estates Projects (up 0.94%), Brigade Enterprises (up 0.44%), DLF (up 0.34%), Indiabulls Real Estate (up 0.07%) advanced.
On the other hand, Sobha (down 2.03%), Oberoi Realty (down 0.52%) edged lower.
Stocks in Spotlight:
Torrent Power surged 15.75%. The company said that it has signed a Memorandum of Understanding (MoU) with the Government of Maharashtra for development of three Pumped Storage Hydro Projects of 5,700 MW capacity in Maharashtra.
Va Tech Wabag gained 2.16%. The water treatment company has secured a contract worth approximately Rs 420 crore for the construction, operation, and design of a water treatment plant (WTP) in Jite, Raigad. The WTP will have a capacity of 270 million litres per day (MLD) and will cater to the future water demand of Navi Mumbai.
HCL Technologies added 0.16%. The IT major announced that it has launched test lab in Chennai, India to enable global telecom infrastructure original equipment manufacturers (OEMs) to test and validate 5G solutions.
Engineers India (EIL) advanced 2.63% after the company bagged service supply contracts from National Aluminium Company (NALCO) and Jindal Steel and Power Limited (JSPL) worth Rs 20.55 crore.
G R Infraprojects rose 1.10% after the company's wholly owned subsidiary, GR Hasapur Badadal Highway, executed concession agreement with National Highways Authority of India (NHAI) for Rs 872.17 crore on 6 June 2023.
Deepak Fertilisers And Petrochemicals Corporation gained 1.32%. Performance Chemiserve (Issuer) a wholly owned subsidiary of the company has raised Rs 900 crore by issue and allotment of rated, listed, unsecured, redeemable non-convertible debentures (NCDs) on private placement basis to qualified institutional buyers.
KPI Green Energy rose 1.35% after the company has received letter of intent (LoI) from Anupam Rasayan India to execute wind-solar hybrid power project under captive power producer (CPP). The aggregate LoI size is 40 MW capacity (comprising of 21.50 MW Wind and 18.50 MW Solar). The project is scheduled to be completed in the financial year 2023-24 in various tranches.
JSW Ispat Special Product rallied 2.68%. Kiran Menon, chief financial officer (CFO) of JSW Ispat Special Product, has resigned from his position, effective from close of business hours of 5 June 2023. Menon cited his resignation to pursue opportunities outside the Group.
Nelco declined 1.11% after the company announced a strategic investment in Piscis Networks (Piscis) to enhance its portfolio of satellite communication solutions.
Global Markets:
Most of the European markets declined while Asian stocks traded mixed on Wednesday.
China's exports in May 2023 declined 7.5% year-on-year, sharply lower than the 0.4% fall expected, while imports saw a smaller fall of 4.5% year-on-year, compared to a 8% fall that was forecast. The country's trade surplus in May was $65.81 billion, down 16.1%.
Australia' first quarter gross domestic product expanded by 2.3% year-on-year. This was the slowest rate of growth in 18 months since the country emerged from a Covid-19 lockdown in September 2021.
US stocks rose on Tuesday, helped by some advances in economically sensitive sectors, as investors awaited inflation data and the Federal Reserve's policy meet next week.
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