Share Market Highlights June 03, 2024: Sensex, Nifty jump over 3% as exit polls predict NDA sweep

The rupee jumped to over two-month high closing level and settled with a gain of 28 paise at 83.14 (provisional) against the US dollar on Monday, tracking over 3 per cent surge in domestic equity benchmarks after exit poll results predicted a firm comeback of the ruling BJP-led government for the third straight term.

Forex analysts attributed the steep rise in the local unit to a number of positive factors such as strong domestic macroeconomic data, inflow of foreign funds and a weak American currency against major Asian rivals.

Also, they said lower level of the crude oil prices after OPEC+ grouping’s decision to maintain the status quo in the oil output supported the Indian currency.

At the interbank foreign exchange market, the local unit opened at 83.09 and moved between the peak of 82.95 and the lowest level of 83.17 against the greenback during intra-day deals.

The unit finally settled at 83.14 (provisional) against the dollar, registering a gain of 28 paise from its previous close.

On Friday, the rupee declined 13 paise to close at 83.42 against the US dollar.

Earlier, the rupee had closed at 83.13 against the dollar on March 21 this year. It had breached the 83.00 level on March 18. (PTI)

“Exit poll has activated the optimism of a memorable win for the ongoing government, PSUs had a humongous rally, in anticipation of continuation of the reform gains, triggering further re-rate. The sustenance of the broad rally is anticipated to continue in-line with the magnitude of the actual tally, as inflows pours in which were sitting on the sidelines in the last 3 months. Strong economic data like GDP growth of 8.2% in FY24, 100 days measures list and final budget will be the key points market will observe in the coming weeks.”

India’s equity benchmarks closed nearly 3.5% higher on Monday as the exit polls predicted a clear victory for the NDA in the recently concluded Lok Sabha elections. While the BSE Sensex gained 2507.47 points, or 3.39%, to 76,468.78, the broader Nifty50 gained 733.20 points, or 3.25%, to 23,263.90.25, show provisional data on the exchanges. 

Within the Nifty pack, Adani Ports & SEZ advanced the most with a gain of 10.62% followed by SBI (9.48%), NTPC (9.33%), Power Grid (9.03%) and ONGC (7.43%), while Eicher Motors (1.34%), LTIMindtree (1.12%), HCLTech (0.57%), Sun Pharma (0.32%) and Asian Paints (0.22%) were the major laggards.

Axis Bank, a private sector bank, and Bajaj Allianz General Insurance, a private general insurer, have entered a strategic bancassurance partnership to boost insurance penetration and financial inclusion in the country.

Read more here.

Top gainers:

Adani Ports (9.99%), Power Grid (9.24%), NTPC (8.94%), SBI (8.58%), ONGC (7.60%)

Top losers:

LTIMindtree (-0.99%), Eicher Motors (-0.92%), HCL Tech (-0.69%), Asian Paints (-0.63%), Sun Pharma (-0.34%)

Stocks advanced on BSE at 3 pm on June 3, 2024, were 2,375 against 1,565 stocks that declined; 151 stocks remain unchanged. Total stocks traded were 4,091. The number of stocks that recorded a 52-week high was 275, and those that hit a 52-week low was 63. 

In addition, 354 stocks traded in lower circuit, while 303 hit the upper circuit.

Canara Bank has initiated the process of seeking regulatory approval to convert its software services and products subsidiary into a non-banking finance company (NBFC). After this conversion, the bank will hive off its credit card division and move to the NBFC.

Cairn Oil & Gas, part of Vedanta Group, is accelerating efforts to become Net Zero by 2030

Vedanta stock trades at ₹459.20 on the NSE, up 2.04%.

BSE Sensex trades at 76,306.99, higher by 2345.68 pts or 3.17% as of 2.23 pm, and Nifty 50 trades at 23,234.50, up by 703.80 pts or 3.12%.

Ashok Leyland stock surges 5.87% on the NSE, trading at ₹237.15, after the company reported 12% sales surge in May 2024. 

Stock has hit a 52-week high at ₹237.50.

DroneAcharya Aerial Innovations Limited has bagged the largest FPV (First Person View) drone supply export order in India to date, valued at ₹15.01 Crore. 

The stock surges 7.09% on the BSE, trading at ₹147.95

Impex Metal & Ferro Alloys Limited, wholly owned subsidiary of Maithan Alloys, has proposed to resume its production during the month of Jwe -2024 and production of ferro alloys will be gradually scaled up.

Stock rises 1.22% on the BSE, trading at ₹1,158.40.

GE Power India announced the resignation of Yogesh Gupta as Chief Financial Officer of the company w.e.f. July 24, 2024.

Vakrangee Limited has entered into a share purchase agreement for acquisition of 18.5% equity share capital of Vortex Engineering Private Limited from Tata Capital Innovations Fund.

Vakrangee stock trades at ₹22.65 on the NSE, up 2.03%.

The State Bank of India (SBI) ‘s market capitalisation crossed the ₹8 lakh crore mark on Monday after the bank’s shares surged to a record high of ₹907.

Read more here.

Homegrown Welspun Corp Ltd on Monday said its associate entity EPIC has signed multiple agreements worth SAR 1.65 billion (about ₹3,670 crore) with Saudi Arabian Oil Co. (Aramco) for the supply of steel pipes.

Read more here.

Maruti Suzuki India is up 0.83% on the NSE, trading at ₹12,502.30 after it reported total domestic wholesales (dispatches to dealers) of 1,44,002 units in May, marginally up from the 1,43,708 units sold in the same month last 

The National Highways Authority of India (NHAI) has announced an average 5 per cent increase in toll rates across the country beginning Monday. Read more

Read all about the Adani Group stock surge on a live blog here

The Indian stock market witnessed a significant surge today. The BSE Sensex was up by 3.13 per cent, or 2,292.14 points, to 76,244.18, while the NSE Nifty was at 23,221, up by 3.07 per cent, or 690.75 points, at 12.40 pm. This was driven by optimism fuelled by exit poll predictions of a victory for the NDA government. Read more

The Nifty Bank crossed a significant milestone on Monday, surging past the 50,000 mark for the very first time. This positive movement was fueled by exit polls predicting a third term for Prime Minister Narendra Modi and his BJP party.

The index witnessed a rise of up to 4.1% during the trading session, reaching a high of 50,990. This surge was driven by strong performances from individual banking stocks.

Bank of Baroda led the pack with a jump of 9%, followed by State Bank of India (SBI) at 7%. Axis Bank, IndusInd Bank, and Punjab National Bank (PNB) also witnessed significant gains exceeding 4%. Other major players like Federal Bank, ICICI Bank, HDFC Bank, and Kotak Mahindra Bank rose by 2-3%.

The positive exit polls instilled confidence in investors, leading them to add a whopping Rs 12 lakh crore to the Sensex, which also soared by a substantial 2,600 points. This marks a historic achievement for the Nifty Bank, signifying a positive outlook for the Indian banking sector. The rally reflects investor confidence in the stability and growth prospects under a potential third term for the NDA government led by PM Modi. While the overall market sentiment played a major role, individual bank performances also contributed significantly. Banks like Bank of Baroda, which might benefit from the government’s focus on public sector undertakings (PSUs), witnessed steeper rises.

Sensex Today | Bank Nifty up more than 1500 points, jumps above 50500, hits new record high

“A big move is always expected around big events. Elections are the biggest event for India markets every 5 years. This time it was even more interesting given that a strong leader is contesting for a third term fighting anti-incumbency and only once in the past 75 years has this feat been achieved of three consecutive terms. However the markets have been extremely positive. The indices in the past 6 months in the anticipation of the new govt offering continuity in reform risen nearly 20%. The exit polls over the weekend have bolstered the expectation of the current govt sweeping the polls again. 

In the history of past election day moves, in 2009 the markets hit upper circuit on a surprise win, in 2014 markets ran up nearly 10% before election result day and in 2019 also a few days of good run post results ensued. This time the markets ran up from Nov to Feb but consolidated largely since then. If there is an outcome of continuation which the market is sensing on Monday a lot of funds sitting on the sidelines can continue to pour in, tremendously large FII short positions that have been built can over time be unwound and expectations of new measures in the first 100 days can keep the ball rolling.

There is little chance that this markets will roll back unless the outcome on June 4th is not per expectation. There is an outside chance that the actual results may infact be even more strong than the exit polls as has been seen in the last 3 election exit polls where final numbers were far more extended in the direction of the stronger swing. All in all markets are putting their faith into the leadership with a great potential for India to emerge as fast growing strong and stable nation.”

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Nifty and Sensex have reached record highs following positive exit polls, with much of this optimism already reflected in current market levels. If the exit poll results are confirmed by the actual election outcome, we could see further gains, with Nifty possibly advancing towards 23,500 and Sensex approaching 77,000. In the near term, we might observe consolidation within the 23,000 to 23,500 range for Nifty. Despite this, the overall trend remains bullish, and Nifty is expected to surpass the 24,000 mark in the coming days after a period of consolidation. This is supported by the attractive valuations in large-cap stocks and the anticipated increase in foreign institutional investor (FII) inflows into the Indian market following the election results.

According to ICRA’s latest note on the steel sector, domestic steel consumption registered a growth of 11.3% between February to April 2024. While government capex spending was healthy until February 2024, other steel consuming sectors like housing/real estate contributed to the resilient demand thereafter. Given these leading trends, the rating agency has revised its FY2025 full-year steel demand growth target to 9-10%, higher by 200 basis points, compared to the earlier estimate of 7-8%, leading to the sector’s FY2025 earnings being revised upwards. Following the expectation of better realisations, and higher deliveries, the industry’s leverage (total debt to operating profits) is expected to remain at a comfortable level of 2.0-2.5 times in FY2025, making it resilient to withstand a worsening global demand environment. ICRA has, therefore, retained the sector’s outlook at Stable.

AGS Transact Technologies Ltd’s digital payments platform, Ongo, has commenced testing of voice controlled fuelling feature in its mobile application. The stock is down by 2.34 per cent on the NSE, trading at ₹70.80

Top gainers: Adani Ports (10.71%), Power Grid (9.98%), SBI (8.15%), NTPC (7.84%), BPCL (7.34%)

Top losers: Eicher Motors (-1.13%), LTIMindtree (-0.38%), HCL Tech (-0.18%)

A total of 2,508 stocks advanced on the BSE at 12.05 pm on June 3, 2024, against 1,309 stocks that declined; 168 stocks remained unchanged. Total stocks traded were 3,985. While 259 stocks recorded a 52-week high, 48 hit a 52-week low. 

In addition, 306 stocks traded in the lower circuit, while 244 hit the upper circuit.

The Indian rupee pared early gains after jumping to a more-than-two-month high in early trading. This was due to exit poll projections that Indian Prime Minister Narendra Modi’s party and alliance would secure a third term with a sizeable mandate, boosting investor confidence. Read more

Bank Nifty opened with a huge gap-up today at 50,890 versus last week’s close of 48,984. After marking a high of 50,990, the index is now trading around 50,550, up 3.2 per cent so far today. Read more

The markets are riding a wave of optimism, propelled by the exit polls suggesting a decisive win for the NDA government, reflecting the sentiment driving the surge to an all-time high of 23,122. The upcoming election results could sustain this rally if the NDA wins, while any surprises might trigger volatility. Additionally, the RBI’s monetary policy decisions will be critical; a dovish stance could further boost the market, whereas a hawkish approach to curb inflation might temper gains. In the short term, investors should maintain caution and consider hedging, while a mid-term strategy should focus on a diversified portfolio, quality investments, and monitoring economic indicators to adapt to fiscal and monetary policy changes.

Nifty 50 opened with a wide gap-up at 23,337.90. The exit poll results released on Saturday evening had triggered this surge. The index has however come down from the intraday high and made a low of 23,062.30. It is currently trading at 23188.80, up 2.9 per cent. Read more

However, the rupee later pared its gains due to importer demand for dollars. As of 10.05 a.m., the rupee was trading at 83.08 against the dollar, up 0.5% from the previous session’s close.

Adani Ports and Special Economic Zone stock jumped 10.12%, Adani Enterprises surged by 6.44%, and Adani Power rose by 13.70%. Adani Total Gas stock surged 6.66%, NDTV stock rose by 4.20%, ACC increased by 3.25%, and AWL stock was up 2.64%.

Heatwave slowed wheel of manufacturing in May, though job creation saw good growth, a survey result released on Monday showed. Read more

Heatwave slowed wheel of manufacturing in May, though job creation saw good growth, a survey result released on Monday showed.

The result known as HSBC PMI (Purchasing Managers’ Index) Manufacturing slipped to 57.5 in May as against 58.8 of April, a three-month low.

Nifty 50 opened with a wide gap-up at 23,337.90. The exit poll results released on Saturday evening had triggered this surge. The index has however come down from the intraday high and made a low of 23,062.30. It is currently trading at 23188.80, up 2.9 per cent.

The election results will be out tomorrow. It is important to see how far the actual numbers are going to match with the exit poll results. 

Adani Group stocks rallied on Monday’s early trade after exit polls predicted a massive win for the BJP-led NDA in the Lok Sabha polls. Read more

Bank Nifty opened with a huge gap-up today at 50,890 versus last week’s close of 48,984. After marking a high of 50,990, the index is now trading around 50,550, up 3.2 per cent so far today.

All 12 stocks in the index have gained today led by Bank of Baroda, up 9 per cent, followed by State Bank of India, up 6.5 per cent.

SRG Housing Finance has approved raising of funds by issue of equity shares for an aggregate amount not exceeding ₹100 crore through private placement or qualified institutions placement (QIP) or preferential allotment or through a combination.

Stock inches up 0.48% on the NSE, trading at ₹284.30.

The markets are riding a wave of optimism, propelled by the exit polls suggesting a decisive win for the NDA government, reflecting the sentiment driving the surge to an all-time high of 23,122. The upcoming election results could sustain this rally if the NDA wins, while any surprises might trigger volatility. Additionally, the RBI’s monetary policy decisions will be critical; a dovish stance could further boost the market, whereas a hawkish approach to curb inflation might temper gains. In the short term, investors should maintain caution and consider hedging, while a mid-term strategy should focus on a diversified portfolio, quality investments, and monitoring economic indicators to adapt to fiscal and monetary policy changes

Top gainers: Adani Power (14.24%), PFC (11.21%), IRB (10.84%), REC (10.46%), Power Grid (9.95%)

Top losers: Marksans (-4.72%), Arvind (-4.40%), Suven Pharma (-3.10%), Godrej Phillips (-2.89%), Newgen (-2.87%)

Aurobindo received its first marketing authorisation for the biosimilar drug trastuzumab, which is used for breast cancer treatment, in the Indian market in the current financial year. Read more

Shriram Finance Ltd (SFL) has raised a multi-currency $468 million equivalent social loan ($425 million and EUR 40 million) through a syndicated term loan transaction. 

Shriram Finance stock jumps 6.41% on the NSE, trading at ₹2,504.90.

Sagarsoft (India) shares down by 4.99 per cent, trading at Rs 207.50. Touches lower circuit. Second time in four days to touch lower circuit. It touched lower circuit at Rs. 218.40 on May 31.

Steel Strips Wheels Ltd (SSWL) recorded a net turnover of ₹342.04 crore in May 2024 versus ₹357.27 crore in May 2023, recording a decline of 4.26% y-o-y. Stock trades at ₹217.80 on the NSE, up 1.40%

The BSE Sensex was up by 2.76 per cent, or 2,122.79 points, to 76,084.10, while the NSE Nifty was at 23,177.75, up by 2.87 per cent, or 647.05 points. A total of 3,380 stocks were actively traded; 2,738 advanced, 530 declined, and 112 remained unchanged. On Monday, the BSE’s 192 stocks hit a 52-week high, and 23 stocks hit a 52-week low. Read more

If the exit polls are matched with the actual count, this points to a strong pro-incumbency wave and showcases strong support for the ongoing policies by the country’s voters, according to Radhika Rao, Senior Economist & Executive Director, DBS. The exit polls suggest that the incumbent National Democratic Alliance will return to power with a clear majority for a third consecutive term.

Aside from political stability, the economic agenda is likely to be focused on the final budget in July in the near-term and further out on capex commitments, fiscal consolidation, and reforms targeted at the factors of production. Onshore markets are likely to welcome this outcome, marked by small gains on the rupee, equity markets, while 10-Year yields stay below 7 per cent, Rao said.

Adani Power (14.43%)

Adani Ports (11.38%)

Adani Enterprises (9.05%)

Adani Green (6.42%)

Ambuja Cements (4.88%)

Global Developments

US April PCE and core PCE came in line with expectations at 2.7% and 2.8% yoy respectively. 

May ISM manufacturing PMI is due today. Key data this week would be the US May jobs report due on Friday. 

Price action across assets

US treasury yields are around 5bps lower across the curve. 2y is at 4.87% while 10y is at 4.49%

S&P500 had ended 0.8% higher while Nasdaq had ended flat on Friday

Brent has come off to USD 81 per barrel as OPEC+ agreed to extend voluntary production cuts in Jul-Sep quarter before gradually phasing them out over the next 6 months. Gold has come off to USD 2327 per ounce. 

Domestic Development

Most exit polls are indicating a thumping majority for NDA

Q4 GDP came in much better than expected at 7.8% (exp 7% yoy) taking the FY24 GDP to 8.2% yoy. FY’24 fiscal deficit at 5.6% was even lower than the revised estimate of 5.8% of GDP

Core sector grew 6.2% yoy in April. GST collections rose 10% yoy to 1.73 lakh crs in May

Besides the election results on Tuesday, we have the RBI monetary policy on Friday.

This week we expect a reduction in volatility, technically referred to as a volatility crush. Typically, a market-impacting event leads to an irrational increase in implied volatilities (IVs) of options. This primarily occurs due to the fear and uncertainty surrounding the event’s outcome.

High implied volatilities are attractive for option sellers and provide momentum for option buyers. The transition back to a low IV regime is often drastic, making risk management crucial. As the event progresses and certainty sets in, IVs collapse and return to normal levels.

To put things in perspective, India VIX made a low of 10 and is currently trading around the 24 mark, having peaked at 26. The previous 15-month average for India VIX is observed at 13-15. Therefore, expect an IV crash and a sudden drop in options premiums, along with the impact of the underlying movement, referred to as delta.

Friday’s inside bar sets up Nifty to reverse the last week’s downsides. Being at the 20d sma with fast stochastics at lower extreme, the anticipated upswing will have room for upside till atleast 23065 with a key fibo seen at 23480, should a range breakout unfolds. Wild case scenarios projected from Frida’s closing of VIX pips the upper range at 24130 and lower range at 20930. Failure to float above 23065, will signal rejection trades, but will require a close back below 22954-841 for bears to dominate, in which case 22700-550-300 will be in play. 

Derivative outlook:

Nifty weekly contract has highest open interest at 23000 for Calls and 20200 for Puts while monthly contracts have highest open interest at 24000 for Calls and 20000 for Puts. Highest new OI addition was seen at 24700 for Calls and 20200 for Puts in weekly and at 22500 for Calls and 20000 for Puts in monthly contracts. FIIs increased their future index long position holdings by 20.66%, increased future index shorts by 8.94% and in index options by 80.72% in Call longs, 31.89% in Call short, 78.87% in Put longs and 63.68% in Put shorts

BSE stock trades at ₹2,736.65 on the NSE, up 1.59% following the completion of acquisition of S&P Dow Jones Indices’ entire equity stake in Asia Index Private Ltd (AIPL), making it a wholly-owned subsidiary of the bourse

Puravankara stock surges 3.26% on the NSE, trading at ₹418.05. The company had acquired 12.75 acres in the Mumbai Metropolitan Region (MMR) to develop a residential project, with an estimated revenue potential of ₹4,000 crore.

Silver prices were steady as investors awaited more US economic data to determine when the Federal Reserve could begin relaxing monetary policy this year. The personal consumption expenditures (PCE) price index rose 0.3% last month, according to the Commerce Department’s Bureau of Economic Analysis on Friday, matching the unrevised gain in March. Traders increased their wagers that the Federal Reserve will drop interest rates for the first time in September, after statistics revealed that inflation made some headway towards the Fed’s 2% target last month. The CME FedWatch Tool shows that traders are currently pricing in a 54% possibility of a rate drop by September.

Key economic data slated for release includes German Final Manufacturing PMI, Final Manufacturing PMI from Euro Zone and Final Manufacturing PMI, ISM Manufacturing PMI, ISM Manufacturing Prices from US Zone.

Gold prices remained stable at $2,330 as investors assessed recent US inflation data and looked ahead to more economic data for clues on the probable timing of the Fed’s monetary policy easing. Last Friday, core PCE prices fell in April compared to March, while headline monthly and yearly rates stayed unchanged, as expected. This brought additional relief that the Fed has room to lower interest rates this year. The ECB is likely to decrease interest rates this week, but uncertainties about future movements beyond June have grown after inflation surged faster than projected in May. The Bank of Canada is also expected to lower rates this week.

Key economic data slated for release includes German Final Manufacturing PMI, Final Manufacturing PMI from Euro Zone and Final Manufacturing PMI, ISM Manufacturing PMI, ISM Manufacturing Prices from US Zone. Read more

Associate company of Welspun Corp, East Pipes Integrated Company for Industry (EPIC), Saudi Arabia’s manufacturer of HSAW Pipes, has announced a multi contracts sign-off with Saudi Arabian Oil Co. (Aramco) with value exceeding SAR 1.65 Billion (approx. ₹3,670 crore) inclusive of value added tax for manufacturing and supply of steel pipes. The duration of the contracts is 19 months.

Welspun Corp stock rises 1.83% on the NSE, trading at ₹559.

Top gainers: Adani Ports (8.39%), Shriram Finance (7.32%), Power Grid (6.79%), Adani Enterprises (6.76%), BPCL (5.85%)

Top losers: Eicher Motors (-0.55%), LTIMindtree (0.04%)

Crude oil futures traded marginally lower on Monday morning despite OPEC+ deciding to extend production output cuts into 2025. At 9.17 am on Monday, August Brent oil futures were at $81.08, down by 0.04 per cent, and July crude oil futures on WTI (West Texas Intermediate) were at $76.96, down by 0.04 per cent. June crude oil futures were trading at ₹6403 on Multi Commodity Exchange (MCX) during the initial hour of trading on Monday morning against the previous close of ₹6453, down by 0.77 per cent, and July futures were trading at ₹6396 against the previous close of ₹6450, down by 0.84 per cent. Read more

Indian benchmark indices, Sensex and Nifty, surged over 2% on Monday, driven by exit polls predicting a decisive victory for the Bharatiya Janata Party-led National Democratic Alliance. 

The 30-share BSE Sensex jumped 1,950 points to reach 75,911.54 in early trade, while the NSE Nifty climbed 636.10 points to 23,166.80.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented, “Exit polls suggesting a clear win for the NDA with around 360 seats eliminate the election jitters that have been affecting the markets since May. This is a significant boost for the bulls, likely triggering a substantial rally on Monday.

“Large-cap stocks in financials, capital goods, automobiles, and telecom sectors are expected to lead the rally. The bulls will also be supported by the better-than-expected 8.2% GDP growth reported after market hours on Friday. Both technically and fundamentally, the market is set for a rally,” he added.

Kotak Alternate Asset Managers forecast the Nifty50 reaching 24,600 within a year, while cautioning about the current froth in the midcap and smallcap space. 

Across the Asia-Pacific region, except China, equities are generally firm, rising between 0.75% and 2%.

Analysts suggest that foreign portfolio investors, previously net sellers, may shift their strategy and become buyers.

Vipul Bhowar, Director of Listed Investments at Waterfield Advisors, stated, “High valuations and weak earnings in the financial and IT sectors, where FPIs have a significant allocation, combined with political uncertainties, global risk-off sentiment, and the allure of Chinese markets, have led to FPI selling.

However, strong GDP growth, manageable inflation, political stability, and the expectation that the RBI has concluded its monetary tightening create a positive outlook for the Indian economy, signaling a potential reversal from their net selling in May,” he added.

Motilal Oswal has reduced Titan’s earnings estimates by 4% in FY25 and 3% in FY26 but has retained its ‘buy’ recommendation on the stock with a price target of Rs 4000.

Ex-Dividend 4 June 2024 (Tomorrow)

Last date for Cum-Dividend Today

Foseco India Ltd.

Dividend Per Share Rs.25

Previous day Closing Price – Rs. 3597.9

ITC Ltd.

Dividend Per Share Rs.7.5

Previous day Closing Price – Rs. 426.15

[03/06, 8:19 am] +91 95946 47102: Daily Market Update- 03 June 2024

Stocks in the Asia-Pacific region traded higher on Monday, tracking last week’s positive close and renewed rate-cut hopes by the US Federal Reserve. 

Japan’s benchmark Nikkei 225 was 524 points or 1.36% up at 39,012, and Australia’s S&P ASX 200 was 60.76 points or 0.79% higher at ,7762, as of 06:53 a.m. Indian time.

A renewed bout of volatility gripped US stocks in the final stretch of Friday session, with most of them ending in the final 20 minutes of trading. 

The S&P 500 Index and Nasdaq Composite rose 0.80% and 1.51%, respectively, as of Friday, while Dow Jones ended little changed.

Brent crude was trading 0.33% lower at $81.38 a barrel. Gold rose 0.16% to $2,331.00 an ounce. 

India’s benchmark equity indices erased most of their early losses to end marginally higher on Friday ahead of the gross domestic product data release later in the day. On a weekly basis, the Nifty recorded its worst fall since the week ended May 10.

The NSE Nifty 50 closed 0.19% or 42.05 points higher at 22,530.70, while the S&P BSE Sensex ended 0.10% or 75.71 points up at 73,961.31. 

Overseas investors turned net buyers on Friday after two days of selling. Foreign portfolio investors mopped up stocks worth Rs 1,613.2 crore, while domestic institutional investors stayed net buyers for nine straight sessions and bought equities worth Rs 2,114.2 crore, the NSE data showed. 

The Indian rupee weakened by 15 paise to close at 83.46 against the US dollar.

· ICICI Bank +0.38%

· HDFC Bank +1.17%

· Infosys +1.30%

· Wipro +0.59%

· Dr Reddy’s Lab -1.69%

Automakers in focus after May sales data announcement. 

Canara Bank: The company is to dilute a 14.5% stake in the arm of Canara HSBC Life through an IPO. 

Aurobindo Pharma: The company’s arm executed a master service pact with Merck Sharpe and will invest Rs 1,000 crore for the manufacturing facility.

REC: The company approved raising up to Rs 1.45 lakh crore through bonds and appointed Harsh Baweja as CFO. 

Inox Wind: The board of the company has approved raising Rs 1,000 crore in one or more tranches through preference shares. The fundraising is subject to all requisite approvals, including those of the shareholders.

Adani Ports and Special Economic Zone: The company’s arm has signed a 30-year concession pact with the Tanzania Ports Authority for container terminals. 

Wipro: The company has expanded its retail media offering by partnering with Cisco and AT&T.

NTPC: The company commissioned the second and last part capacity of 33 MW out of the 90 MW Anta Solar PV Project in Rajasthan. The company’s total capacity on a standalone and group basis now stands at 59,168 MW and 76,048 MW, respectively. 

Bank of India: The company is to raise MCLR by 5 bps across most tenures, effective June 1.

Angel One: The company arm incorporated a wholly owned subsidiary for the distribution of financial products and services. 

PNC Infratech: The company arm gets a one-time settlement amount worth Rs 391 crore from NHAI.

Blue Cloud Softech Solutions: Supraja Business Consultants sold 13 lakh shares (0.59%) at Rs 88.7 apiece, while Duranta Infrastructure sold 12 lakh shares (0.55%) at Rs 88.7 apiece. 

Berger Paints: Integrated Core Strategies (Asia) bought 92.85 lakh shares (0.79%) at Rs 460.94 apiece.

CarTrade Tech: Cmdb Ii sold 18.76 lakh shares (4%) at Rs 900 apiece, and Tt Emerging Markets Unconstrained Fund bought 5.46 lakh shares (1.16%) at Rs 900 apiece. 

Indraprastha Gas: Integrated Core Strategies (Asia) bought 99.72 lakh shares (1.42%) at Rs 442.12 apiece.

Jindal Stainless: BNP Paribas Financial Markets sold 52.04 lakh shares (0.63%) at Rs 784.95 apiece; Copthall Mauritius Investment sold 49.83 lakh shares (0.6%) at Rs 793.13 apiece; and Integrated Core Strategies (Asia). sold 43.95 lakh shares (0.53%) at Rs 792.23 apiece.

Phoenix Mills: BNP Paribas Financial Markets sold 14.67 lakh shares (0.82%) at Rs 3092.11 apiece, Copthall Mauritius Investment sold 9.27 lakh shares (0.51%) at Rs 3094.54 apiece, and Integrated Core Strategies (Asia) sold 12.38 lakh shares (0.69%) at Rs 3093.85 apiece.

PB Fintech: BNP Paribas Financial Markets sold 27.33 lakh shares (0.6%) at Rs 1287.33 apiece, Copthall Mauritius Investment Limited sold 29.64 lakh shares (0.65%) at Rs 1291.67 apiece, and UBS Principal Capital Asia Limited sold 26.66 lakh shares (0.59%) at Rs 1292.89 apiece.

Sundaram Finance: BNP Paribas Financial Markets sold 9.27 lakh shares (0.83%) at Rs 4270.28 apiece, Copthall Mauritius Investment Limited sold 7.73 lakh shares (0.69%) at Rs 4279.69 apiece, Integrated Core Strategies (Asia) Pte. Ltd. sold 7.57 lakh shares (0.68%) at Rs 4280.45 apiece, and UBS Principal Capital Asia Limited sold 9.57 lakh shares (0.86%) at Rs 4277.64 apiece.

Torrent Power: Integrated Core Strategies (Asia) Pte. Ltd. sold 24.69 lakh shares (0.51%) at Rs 1498.79 apiece. 

Thermax: Integrated Core Strategies (Asia) Pte. Ltd. sold 10.34 lakh shares (0.86%) at Rs 5403.76 apiece.

Chambal Fertilizers and Chemicals: Promoter Zuari Industries created a pledge for 17 lakh shares on May 28, Promoter Zuari Industries created a pledge for 17 Lakh shares. 

Kfin Technologies: Promoter General Atlantic Singapore Fund Pte. sold 1 crore shares.

Price Band Change from 5% to 20%: PTC India Financial Services. 

Ex/record dividend: Rallis India, Sundaram Fasteners, Anand Rathi Wealth, D. B Corp, ITC

Ex/record Buyback: Anand Rathi Wealth. 

Nifty June futures up by 0.34% to 22,700.7 at a premium of 170 points. 

Nifty June futures open interest up by 8.16%. 

Nifty Bank June futures up by 0.7 % to 49,352.35 at a premium of 458.4 points. 

Nifty Bank June futures open interest down by 7.34%. 

Nifty Options June 6 Expiry: Maximum Call open interest at 23,000 and Maximum Put open interest at 20,200.

Bank Nifty Options June 5 Expiry: Maximum Call Open Interest at 57,000 and Maximum Put open interest at 40,000. 

APOLLOHOSP: Morgan Stanley maintains an overweight call on Apollo Hospitals. Says co poised to achieve mid-teens growth in FY25, adding that co also has a clear strategy to achieve EBITDA breakeven for its 24/7 online platform.

Iron ore futures prices slipped to their lowest levels in more than two weeks on Monday, as signs of weakening steel demand in top consumer China broadly weighed on sentiment.

As of 0247 GMT, the most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 1.62% lower at 852.5 yuan ($117.66) a metric ton, the lowest since May 15.

The benchmark July iron ore on the Singapore Exchange was 1.56% lower at $113.35 a ton, also the lowest since May 15. Prices slid more than 4% last week. - Reuters

Nomura On Exit Polls

Equity Market To React Positively If Exit Poll Results Translate To Actual Results

FII Flows To Improve If NDA Forms A Stable Government As Predicted

Infra, Manufacturing & Capex Theme Ssectors To Outperform In Near Term

Jefferies On Exit Polls

Numbers Shown In Exit Polls Higher Than Expectations

Will Be Sentimental Positive For Capex Stock If Actual Results Mirror Exit Polls

SMID Caps Could Take A Near-term Breather, Post The Election Rally

Bernstein on Exit Polls

Given that exit poll trends translate into results on Tuesday, continuation of relief rally can happen, with market touching 23.5k briefly before profit booking takes over 

A greater margin of victory can increase magnitude but not duration of rally

IIFL Sec On Exit Polls

There Could Be Attempts At Accelerated Reforms If PM Modi Is Re-elected

Key Sectors In Focus Are Electricity And Agriculture

Positive On Sectors Like Infrastructure, Cement, Private Banks

Positive On Sectors Like NBFCs, Select Industrials

Negative On IT & Chemicals & Neutral On Most Consumer Sectors

Kotak Inst. On Exit Polls

Government Likely To Focus On Investment-led Growth

Find Most Sectors And Stocks Overvalued Relative To The Fair Value Of The Stocks

A Large BJP Victory May Sustain Rich-to-bubble Multiples In Parts Of The Market

MOSL On Exit Polls

Victory Of PM Modi/BJP Augurs Well For The Economy & Capital Markets

Fundamentally, India Is Witnessing Its Own Mini-Goldilocks Moment

Our Model Portfolio Remains Aligned With The Key Domestic Cyclical Themes

Remain OW On Financials, Consumption, Industrials, Real Estate & PSU Banks

Top Ideas In Large Caps Are ICICI Bank, SBI, L&T, Coal India, M&M

Top Ideas In Large Caps Are Adani Ports, ABB, HPCL & Hindalco

Top Ideas In Midcaps Are Indian Hotels, Godrej Prop, Global Health, KEI Ind

Top Ideas In Midcaps Are PNB Housing, Cello World & Kirloskar Oil

MS on Suzlon

Initiate OW, TP Rs 58.5

Well positioned to benefit from India’s energy transition 

Co much stronger after deleveraging, & leaner after cutting fixed operating costs

Think market has not fully appreciated its growth potential yet

Earnings to grow @57% CAGR in F24-27

CLSA on Apollo Hospitals

Upgrade to Buy, TP Rs 7150

Targeting 15% revenue growth in hospitals driven by volume growth

Guided Ebitda margin of 25% by year-end FY25 for its hospital segment.

It expects Apollo 24/7 to break even in next 6-8 quarters

Macquarie on Aurubindo Pharma

O-P, TP Raised to Rs 1385

Announced signing master service agreement with Merck to manufacture biologics products

Co plans to spend Rs10bn in capex 

1st of its kind biologics CMO contract

Est. potential upside of Rs170/sh from contract

Global Market Outlook from Alex Volkov, Market Analyst at VT Markets

Wall Street endured a tough week, marked by significant declines driven by rising Treasury yields and hawkish comments from Federal Reserve officials. The market sentiment was further dampened by higher-than-expected inflation data from Germany and Australia, escalating global inflation concerns. 

As the market braces for the key US personal consumption expenditures (PCE) inflation data, divided opinions persist on whether the Federal Reserve will initiate the first rate cut in September. The upcoming week promises to provide crucial insights into inflation trends and economic stability.

China this week

Recent economic data from China has been mixed, with strong first-quarter GDP and trade activities contrasted by weak domestic demand. The official PMI numbers for May were disappointing, with the manufacturing PMI falling to 49.5 and the services PMI also weaker than expected. Expectations for the Caixin manufacturing PMI, which will be released on 3 June 2024 at 1:45 AM GMT, point to a slight increase to 51.5 from 51.4. 

The manufacturing sector, a vital component of China’s economic health, has shown signs of contraction. This is reminiscent of the slowdown seen in 2015 when similar PMI figures preceded a period of economic restructuring and stabilization. 

Traders are keenly watching for any signs of recovery in the services sector, with the services PMI due on 5 June 2024. The services sector has become increasingly important in offsetting manufacturing weaknesses.

Europe outlook

During the April policy meeting, the European Central Bank (ECB) displayed confidence in controlling inflation and hinted at a potential rate cut. A 25 basis point rate cut is highly probable, with markets pricing a 97% chance. 

Traders will be focused on the upcoming guidance and fresh economic projections for growth and inflation, with the interest rate decision announcement scheduled for 6 June 2024. 

The ECB’s potential rate cut comes at a critical juncture, drawing parallels to the 2014 period when the ECB implemented negative interest rates to combat deflationary pressures and stimulate growth. The market will be watching closely to see if the ECB’s measures can successfully navigate the current economic landscape marked by persistent inflation and sluggish growth.

In April, the US economy added 175,000 jobs, with the unemployment rate rising to 3.9%. Federal Reserve officials have suggested that further rate hikes might be necessary, but a weakening labor market could prompt quicker rate cuts. 

Expectations for May include an addition of 180,000 jobs, a stable unemployment rate at 3.9%, and unchanged participation and hourly earnings rates, with the data to be released on 7 June 2024. 

This employment data will be closely scrutinised, similar to the post-2009 recovery period when job creation and labor market dynamics played pivotal roles in shaping monetary policy. The labor market’s performance will be a key indicator of economic resilience and will influence the Federal Reserve’s decisions on future rate adjustments.

MS on Suzlon: Initiate Overweight on Company, target price at Rs 58.5/Sh (Positive)

MS on Apollo Hospitals: Upgrade to Overweight on Company, target price at Rs 7181/Sh (Positive)

CLSA on Apollo Hospitals: Upgrade to Buy on Company, target price at Rs 7150/Sh (Positive)

Jefferies on Apollo Hospitals: Maintain Buy on Company, target price at Rs 7200/Sh (Positive)

Citi on GDL: Maintain Buy on Company, target price at Rs 127/Sh (Positive)

Macquarie on Auro Pharma: Maintain Buy on Company, target price at Rs 1385/Sh (Positive)

Nomura on Exit Polls: Equity market to react positively if exit poll results translate to actual results, positive on Infrastructure, Manufacturing and Capex theme (Positive)

MOSL on Exit Polls: NDA forecasted to win 370 seats as per average of all exit polls, positive on Industrials, Consumer, Real Estate and PSU sectors (Positive)

MOSL on Exit Polls: Exit polls indicate comfortable win for BJP-led NDA, positive on Industrials, Consumer and Materials sectors (Positive)

Bernstein on Exit Polls: Market might touch 23.5k briefly before profit booking takes over, positive on Manufacturing sector (Positive)

Jefferies on Exit Polls: Exit Poll numbers for BJP/NDA higher than expectations, positive on Real Estate, Power and Private Banking sectors (Positive)

GS on Elections: Indian assets offer some of the most resilient return profiles across the EM world’ (Positive)

BofA on Elections: India is well positioned to scale manufacturing in select sectors, positive on Auto, Pharma and Textiles sectors (Positive)

JP Morgan on Elections: Upgrading Industrial sectors to overweight, positive on Industrials, Auto and Banking sectors (Positive)

Jefferies on Adani Ent: Maintain Buy on Company, target price at Rs 3800/Sh (Positive)

Jefferies on Adani Port: Maintain Buy on Company, target price at Rs 1640/Sh (Positive)

Jefferies on Adani Energy: Maintain Buy on Company, target price at Rs 1365/Sh (Positive)

Jefferies on Ambuja Cement: Maintain Buy on Company, target price at Rs 735/Sh (Positive)

Macquarie on Titan: Maintain Buy on Company, target price at Rs 4000/Sh (Neutral)

CLSA on Titan: Maintain Buy on Company, cut target price at Rs 4045/Sh (Neutral)

JP Morgan on Apollo Hospitals: Maintain Overweight on Company, cut target price at Rs 6800/Sh (Neutral)

IT major Infosys has been fined $3,142.02 (around ₹2.60 lakh) by the Texas Comptroller of Public Accounts, US. The penalty was imposed due to non-payment of sales tax for the period of April 2024, according to a regulatory filing. Read more

Nomura On Exit Polls

Equity Market To React Positively If Exit Poll Results Translate To Actual Results

FII Flows To Improve If NDA Forms A Stable Government As Predicted

Infra, Manufacturing & Capex Theme Ssectors To Outperform In Near Term

Jefferies On Exit Polls

Numbers Shown In Exit Polls Higher Than Expectations

Will Be Sentimental Positive For Capex Stock If Actual Results Mirror Exit Polls

SMID Caps Could Take A Near-term Breather, Post The Election Rally

Bernstein on Exit Polls

Given that exit poll trends translate into results on Tuesday, continuation of relief rally can happen, with market touching 23.5k briefly before profit booking takes over 

A greater margin of victory can increase magnitude but not duration of rally

IIFL Sec On Exit Polls

There Could Be Attempts At Accelerated Reforms If PM Modi Is Re-elected

Key Sectors In Focus Are Electricity And Agriculture

Positive On Sectors Like Infrastructure, Cement, Private Banks

Positive On Sectors Like NBFCs, Select Industrials

Negative On IT & Chemicals & Neutral On Most Consumer Sectors

Kotak Inst. On Exit Polls

Government Likely To Focus On Investment-led Growth

Find Most Sectors And Stocks Overvalued Relative To The Fair Value Of The Stocks

A Large BJP Victory May Sustain Rich-to-bubble Multiples In Parts Of The Market

MOSL On Exit Polls

Victory Of PM Modi/BJP Augurs Well For The Economy & Capital Markets

Fundamentally, India Is Witnessing Its Own Mini-Goldilocks Moment

Our Model Portfolio Remains Aligned With The Key Domestic Cyclical Themes

Remain OW On Financials, Consumption, Industrials, Real Estate & PSU Banks

Top Ideas In Large Caps Are ICICI Bank, SBI, L&T, Coal India, M&M

Top Ideas In Large Caps Are Adani Ports, ABB, HPCL & Hindalco

Top Ideas In Midcaps Are Indian Hotels, Godrej Prop, Global Health, KEI Ind

Top Ideas In Midcaps Are PNB Housing, Cello World & Kirloskar Oil

MS on Suzlon

Initiate OW, TP Rs 58.5

Well positioned to benefit from India’s energy transition 

Co much stronger after deleveraging, & leaner after cutting fixed operating costs

Think market has not fully appreciated its growth potential yet

Earnings to grow @57% CAGR in F24-27

CLSA on Apollo Hospitals

Upgrade to Buy, TP Rs 7150

Targeting 15% revenue growth in hospitals driven by volume growth

Guided Ebitda margin of 25% by year-end FY25 for its hospital segment.

It expects Apollo 24/7 to break even in next 6-8 quarters

Macquarie on Aurobindo Pharma

O-P, TP Raised to Rs 1385

Announced signing master service agreement with Merck to manufacture biologics products

Co plans to spend Rs10bn in capex 

1st of its kind biologics CMO contract

Est. potential upside of Rs170/sh from contract

Exit poll results which indicate a clear victory for the NDA with around 360 seats, completely removes the so-called election jitters, which have been weighed on markets in May. Read more

Domestic markets are likely to open over the moon on Monday, thanks to exit polls that suggest the return of the Bharatiya Janata Party-led National Democratic Alliance with a thumping majority. 

Gifty Nifty at 23,345 in early deals indicates a gap-up opening of about 645 points, as Nifty June futures closed at 22,700 on Friday. Read more

Domestic markets are likely to open over the moon on Monday, thanks to exit polls that suggest the return of the Bharatiya Janata Party-led National Democratic Alliance with a thumping majority. Read more

07:15 CHINA Caixin Manufacturing PMI (Expected: 51.6 versus Previous: 51.4) 

10:30 INDIA HSBC Manufacturing PMI (Expected: 58.4 versus Previous: 58.8) 

13:30 EURO Final Manufacturing PMI (Expected: 47.4 versus Previous: 47.4) 

14:00 U.K. Final Manufacturing PMI (Expected: 51.2 versus Previous: 51.3) 

19:30 U.S. ISM Manufacturing PMI (Expected: 49.8 versus Previous: 49.2)

Divis Laboratories: Promoter Divi Madhusudana Rao sold 55,000 shares between May 28 and 29. 

D B Corp: Promoter Girish Agarwal bought 1.51 lakh shares between May 27 and 29, Pawan Agarwal bought 1.64 lakh shares between May 27 and 29, Promoter Sudhir Agarwal bought 39,749 shares. 

Cantabil Retail India: Promoter Vijay Bansal acquired 3.75 lakh shares Between May 24 and May 29.

Wardwizard Innovations and Mobility: Promoter Aevas Business Solutions sold 5 lakh shares on May 27. Promoter 

Wardwizard Solutions India sold 10 lakh shares between May 28 and 29. 

Kalyan Jewellers: Promoter Geethalakshmi T S sold 50,500 shares on May 29.

Closing Bell:

* Sensex: 73961.31(+75.71)

* Nifty 50: 22530.70(+42.05)

* Nifty bank: 48983.95 (+301.60)

Nifty top 5 Gainers:

* Adani enterp: 3,411.35 (+217.10)

* Adani Ports: 1,437.40 (+53.9)

* Larsen: 3,669.30 (+34.60)

* Tata Steel: 167.20 (+3.05)

* Shriram Finance: 2,354.05 (+51.35)

Nifty top 5 losers:

* Bharti Airtel: 1,372.75 (-4.40)

* Divis Labs: 4,307.20 (-105.60)

* Hero Motocorp: 5,119.60 (-16.40 )

* Kotak Mahindra: 1,680.40 (-9.70)

* Maruti Suzuki: 12,399.30( -198.70)

Nifty 50 and Sensex failed to sustain higher and fell sharply giving back almost all the gains made in the week earlier. Both the indices fell almost 2 per cent each last week. The Nifty Bank index also fell initially, but managed to recover some of the loss towards the end of the week. The index was down about 1 per cent last week. Read more

The outlook for Sona BLW Precision Forgings is bullish. The stock has been getting strong support in the ₹620-₹615 region. The price action on the chart all through last week indicates the presence of strong buyers in the ₹620-₹615 region. On Friday, the stock has risen and closed well above an intermediate resistance level of ₹640. This level of ₹640 will now act as a strong support. Read more

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The Securities and Exchange Board of India (SEBI) has sent a 31-point advisory to investment bankers, requiring enhanced disclosures and increased due diligence on companies tapping the market for initial public offerings (IPOs). Read more