Stock Market Today: Sensex, Nifty End At Six-Month High Ahead Of MPC Decision; FPIs Stay Net Buyers

Overseas investors in Indian equities remained net buyers for the second day in a row on Wednesday.

Foreign portfolio investors mopped up stocks worth Rs 1,382.57 crore, according to data from the National Stock Exchange.

Domestic institutional investors turned net buyers and offloaded equities worth Rs 392.3 crore, the NSE data showed.

Yield on the 10-year bond closed flat at 6.98% on Wednesday.

Source: Bloomberg

• The local currency appreciated 6 paise to close at 82.55 against the U.S dollar on Wednesday.

• The local currency closed at 82.61 on Tuesday.

Source: Bloomberg

The broader market indices outperformed the larger peers; the S&P BSE MidCap Index was up 1.09%, whereas S&P BSE SmallCap Index was higher by 1.15%.

All the 19 sectors compiled by BSE advanced, with S&P BSE Telecommunication, and S&P BSE Utilities gaining the most.

The market breadth was skewed in the favour of the buyers. About 2,277 stocks rose 1,155 declined, and 141 remained unchanged on the BSE.

Source: BSE

Larsen & Toubro Ltd., Bharti Airtel Ltd., TCS Ltd., Britannia Industries Ltd., and Nestle India Ltd. were positively adding to the change in the Nifty 50 Index.

Whereas, ICICI Bank Ltd., Kotak Mahindra Bank Ltd., Bajaj Finance Ltd., ITC Ltd., and Mahindra & Mahindra Ltd. were negatively contributing to the change.

Indian equity benchmarks advanced for the fourth consecutive session to close at a six-month high in trade on Wednesday as metals, realty and fast moving consumer goods sectors advanced. L&T Ltd., TCS Ltd., and Bharti Airtel Ltd. led the positive change on the indices. Indices closes nearly 0.85% shy of it's record high.

The headline indices closed near its all-time high ahead of RBI's monetary policy decision on Thursday. Sectoral indices including Nifty MidCap 100, Nifty Realty, Nifty FMCG, Nifty SmallCap 100, Nifty Auto hit record high intraday.

U.S. futures and European shares drifted lower, as a bigger-than-expected drop in Chinese exports stoked further concerns about the strength of global demand. Europe’s Stoxx 600 index ticked lower, while the FTSE 100 fell 0.2% after U.K. lender Halifax said the nation’s house prices posted their first annual decline since 2012.

Japanese stocks erased gains amid selling in the electric appliances sector, a tick up in the yen and positioning ahead of an expiry in equity futures contracts.

The World Bank said in a report Tuesday the global economy is in a precarious situation as sharp interest-rate hikes hit activity and stir vulnerabilities in lower-income countries. Those fears have suppressed equities.

India's Monetary Policy Committee is likely to continue its status quo on the key lending rate at its second meeting in the new fiscal, amidst easing inflation and resilient growth. All 18 economists polled by Bloomberg expect the MPC to maintain the status quo on the RBI's repo rate on Thursday. The benchmark policy repo rate is currently at 6.50%.

The S&P BSE Sensex Index closed 350 points or 0.56% at 63,142.96 while the NSE Nifty 50 Index was 127 points or 0.68% higher at 18,726.40.

Nifty 50 Index hits the highest level in over six months since Dec. 5, 2022.

Source: Bloomberg

• Nelco announced an investment in Piscis Network to expand satcom solution services

Source: Exchange filing

Indian equity benchmarks held steady gains through midday on Wednesday as healthcare and fast moving consumer good sectors zoomed, whereas private banks and non-banking financial companies were under pressure. While Axis Bank Ltd. and Tata Motors Ltd. led the gains ICICI Bank Ltd. and Kotak Mahindra Bank Ltd. were dragging the indices.

The headline indices were inching towards its all-time high, a day ahead of RBI's announcement of the the monetary policy committee's decision. Several sectoral indices including Nifty Auto, Nifty Midcap 100, Nifty Smallcap 100, Nifty FMCG, Nifty Realty hit record highs intraday on Wednesday,

Stocks in Asia were set to cap the highest close in almost four months, supported by a rally in Hong Kong shares amid hopes for stimulus in China and a positive sign in geopolitics.

Hong Kong’s Hang Seng Index advanced around 1%, while the market’s technology measure jumped by about twice that. Stocks in mainland China fluctuated after trade data showed exports fell more than expected in May.

Japanese stocks erased gains amid selling in the electric appliances sector, a tick up in the yen and positioning ahead of an expiry in equity futures contracts. Europe equity futures held on to small gains and those of US stocks steadied Wednesday.

As of 12:22 p.m., the S&P BSE Sensex Index was 132 points or 0.21% at 62,924.50 while the NSE Nifty 50 Index was 59 points or 0.32% higher at 18,658.10.

Larsen & Toubro Ltd., Tata Motors Ltd., Nestle India Ltd., Axis Bank Ltd., and Britannia Industries Ltd. were positively adding to the change in the Nifty 50 Index.

Whereas, ICICI Bank Ltd., Kotak Mahindra Bank Ltd., Reliance Industries Ltd., HDFC Bank Ltd., and HDFC Ltd. were negatively contributing to the change.

The broader market indices outperformed the larger peers; the S&P BSE MidCap Index was up 0.84%, whereas S&P BSE SmallCap Index was higher by 1.06%.

All the 19 sectors compiled by BSE advanced, with S&P BSE Utilities and S&P BSE Capital Goods gaining the most.

The market breadth was skewed in the favour of the buyers. About 2,277 stocks rose 1,155 declined, and 141 remained unchanged on the BSE.

• HCL Technologies announced the launch of advanced testing facility lab in Chennai for developing 5G infrastructure

• The lab is currently equipped to test 5G telecom antennas for frequency bands up to 7 GHz

Source: Exchange filing

• Muthoot Capital Services have approved the issue and allotment of Rs 124 crore worth of private placement NCDs

Source: Exchange filing

• Axis Bank's market capitalisation at 3.02 lakh crore stands at the fifth position, just after Kotak Mahindra Bank at 3.87 lakh crore.

• The top three companies by market capitalisation are ICICI Bank at 6.64 lakh crore, State Bank of India at 5.26 lakh crore, and HDFC Bank at 4.87 lakh crore.

Source: Bloomberg

• KPI Green Energy recieves LOI for 40 MW hybrid power project from Anupam Rasayan India

• The hybrid project has 21.50 MW wind and 18.50 MW solar capacity

Source: Exchange filing

• Venus Remedies receives Ukrainian GMP approval for Carlapenem and Oncology production facilities in Baddi

• Company is looking to expand in other EU markets after Ukrainian GMP approval

Source: Exchange filing

• Sensex is nearly 1.05% below it's record high at 63,583.07 points on Dec. 21, 2022

• It is nearly 23.5% above its June 2022 low at 50,921.22 points

• Index is trading 0.21% higher at 62,926.40 points, as of 10:14 a.m.

Source: Bloomberg

• R Systems International acquires Pune-based product engineering company Velotio Technologies for Rs 297 crore.

Source: Exchange filing

Shares of Torrent Power Ltd. hit a record high on Wednesday after it signed a Memorandum of Understanding with the government of Maharashtra for development of three pumped storage hydro projects of 5,700 MW capacity.

The projects will entail an investment of about Rs 27,000 crore and would provide employment to approximately 13,500 people during the construction period. Torrent intends to execute these projects over a period of five years, according to an exchange notification.

The projects will be executed at three sites—Karjat in Raigarh district, as well as Maval and Junnar in Pune district. These projects are planned to provide a minimum of six hours of energy storage on a daily basis.

“Pumped storage hydro is an established, proven and cost-effective technology for longer duration storage solution,” the company statement said. The company is strategically entering the storage space to fulfill the void left in the grid by intermittent renewable power.

Shares of Torrent Power Ltd. rose 6.63%, as of 10:08 a.m., to Rs 652.8 apiece in trade on Wednesday as compared to 0.28% advance in the NSE Nifty 50 Index.

The stock rose as much as 9.76% intraday, the most in 16 weeks since Feb. 15, 2023. The total traded volume stood at 61.1 times its 30-day average. The relative strength index was at 82, implying that the stock maybe overbought.

Out of the 11 analysts tracking the company, five maintain a 'buy' rating, four recommend a 'hold' and two suggest to sell the on the stock.

The return potential as calculated by the consensus of analyst estimates, stand at an downside of 18.1% over the next 12 months.

Source: Bloomberg, Exchange filing

The broader market indices outperformed the larger peers; the S&P BSE MidCap Index was up 0.54%, whereas S&P BSE SmallCap Index was higher by 0.70%.

All the 19 sectors compiled by BSE advanced, except S&P BSE Realty Index.

The market breadth was skewed in the favour of the buyers. About 1,917 stocks rose 553 declined, and 110 remained unchanged on the BSE.

Source: BSE

Infosys Ltd., Nestle IndiaLtd., Britannia Industries Ltd., HDFC Life Insurance Co., and Power Grid Corp of India Ltd. were positively adding to the change in the Nifty 50 Index.

Whereas, Reliance Industries Ltd., Axis Bank Ltd., ICICI Bank Ltd., Bajaj Finance Ltd., and HDFC Ltd. were negatively contributing to the change.

Indian equity benchmarks opened higher on Wednesday after gaining for the third straight day on Tuesday.

Asian stocks rose on Wednesday, with hopes for stimulus in China, a positive sign in geopolitics and hints of more broad-based strength in US shares bolstering sentiment.

Stocks in Hong Kong advanced more than 1% and a measure of U.S.-listed Chinese companies jumped 3.8% overnight. Stocks in South Korea and Australia also climbed, while Japanese shares erased earlier gains.

U.S. stock futures were little changed Wednesday. A rotation into financial shares on Tuesday suggested the breadth of the S&P 500’s recent rally might extend beyond technology soon. The small gain on Wall Street Tuesday still left the S&P 500 just short of a bull market. Still, for a second time in three days, the Russell 2000 beat the tech-heavy Nasdaq 100 by at least 2.5 percentage points.

At pre-open, the S&P BSE Sensex Index was 125 points or 0.20% at 62,917.39 while the NSE Nifty 50 Index was 67 points or 0.36% higher at 18,665.60.

At pre-open, the S&P BSE Sensex Index was 125 points or 0.20% at 62,917.39 while the NSE Nifty 50 Index was 67 points or 0.36% higher at 18,665.60.

Source: Bloomberg

• The yield on the 10-year bond opened flat at 6.97% on Wednesday.

Source: Bloomberg

• The local currency appreciated 4 paise to open at 82.57 against the U.S dollar on Wednesday.

• The local currency closed at 82.61 on Tuesday.

Source: Bloomberg

• Wabag bags Rs 420 crore water treatment plant contract from CIDCO for 270 MLD capacity at Raigad.

• The plant will pump the treated water to the Vihal reservoir for further distribution.

Source: Exchange filing

• U.S. Dollar Index at 104.1

• U.S. 10-year bond yield at 3.67%

• Brent crude down 0.04% at $76.26 per barrel

• Nymex crude up 0.03% at $71.76 per barrel

• SGX Nifty up 0.48% at 18,717.5 as of 8:20 a.m.

• Bitcoin up 0.48% at $27,073.68

• NRB Bearings: Promoter & Director Harshbeena Zaveri bought 11,675 shares on June 2, Promoter Group Aziz Yousuf Zaveri bought 87,750 shares between June 2 and June 5.  

• Nucleus Software Exports: Promoter Group Card Systems bought 2,310 shares on June 2. 

• Praveg: Promoter Group Sunita Paras Patel sold 1.4 lakh shares on June 5.  

• Adani Ports & Special Economic Zone: Promoter Group Resurgent Trade and Investment bought 20 lakh shares on June 2.  

• Advanced Enzyme Technologies: Promoter Group Advanced Vital Enzymes sold 29,344 shares between June 2 and June 6. 

• Star Cement: Promoter Groups Rahul Chamaria and Sachin Chamaria sold 2.75 lakh shares each and Promoter Group Suchita Agarwal sold 7,698 shares on June 2. 

• Ex-Date Annual General Meeting: Tata power company, Seshasayee Paper and Boards, Kesoram Industries 

• Ex-Date Dividend: Tata power company, Seshasayee Paper and Boards, Marksans Pharma 

• Ex-Date Interim Dividend: Uniparts India, Optiemus Infracom 

• Record-Date Interim Dividend: Uniparts India, Optiemus Infracom 

• Record-Date Dividend: Marksans Pharma 

• Move Into Short-Term ASM Framework: Arman Financial Services, Indo Count Industries, Sree Rayalaseema Hi-Strength Hypo 

• Move Out of Short-Term ASM Framework: New Delhi Television, Centum Electronics 

• BCL Industries: Rollon Investment sold 2 lakh shares (0.83%) at 472 apiece. 

• Gravita India: Jupiter India Fund bought 10 lakh shares (1.45%) at 585 apiece and Rajat Agrawal sold 13 lakh shares (1.89%) at 586.04 apiece.

• Pennar Industries: Pratibha Narendra Shah bought 7 lakh shares (0.51%) at Rs 76.28 apiece.  

• IFB Industries: Societe Generale bought 3 lakh shares (0.74%) at Rs 800 per apiece. 

The initial public offering of LED lighting solution provider IKIO Lighting Ltd., was fully subscribed on first day. The portion of institutional investors was subscribed 0.30 times, non-institutional investors subscribed 2.97 times, while retail investors portion was subscribed 1.64 times. The three-day issue opened on June 6 and will continue till June 8.

• Adani Group: BSE revised price bands for four Adani group companies: Adani Wilmar, Adani Green, and Adani Transmission from 5% to 10%. It revised the price band for Adani Power from 5% to 20%. 

•  Bank of Maharashtra: The lender approved the QIP issue at an issue price of Rs 28.5 apiece, which is at a discount of 4.94% to the floor price of Rs 29.98. An aggregate of Rs 1,000-crore will be allotted to eligible, qualified institutional buyers.  

•  Torrent Power: The company signed a memorandum of understanding with the government of Maharashtra to develop three pumped storage hydro projects of 5,700 MW capacity in Maharashtra with an investment of about Rs 27,000 crore. Torrent plans to execute these projects over five years.   

•  GMR Airports Infrastructure: The company divested an 8.18 lakh square-feet warehouse facility by selling 100% of its stake in GMR Hyderabad International Airport to ILP Core Ventures. The resulting cashflows will help in expansion and other growth opportunities at Hyderabad Airport Land Development.

•  Engineers India: The company won an order worth Rs 5.05 crore from the National Aluminium Company for providing consultancy services for updating the project report for Pottangi Bauxite Mines. It got an order worth Rs 15.50 crore from Jindal Steel and Power to supply basic engineering and detail engineering for direct reduced iron plant in Odisha.   

• G R Infraprojects: The company’s unit, GR Hasapur Badadal Highway, executed a concession agreement to construct a six-lane Surat-Nashik-Ahmednagar-Solapur-Maharashtra/Karnataka border greenfield stretch on hybrid annuity mode at a bid project cost of Rs 872.17 crore.   

• Rashtriya Chemicals and Fertilisers: Arbitral Tribunal passed an award of Rs 95 lakh as arbitration cost in favour of company in a case with a contractor regarding recovery of damages and losses for breakdown of two Gas Turbo Generator. It asked contractor to repair and reinstate both the generators at their own cost. Tribunal directed the contractor to pay Rs 173.72 crore with 10% interest for additional power expenses.

• JSW Ispat Special Products: Chief Financial Officer Kiran Menon resigned from his post with effect from June 5, 2023, to pursue opportunities outside the Group.  

• MPS: The company dissolved its U.K. unit, Highwire Press On Jun.6. Highwire Press is not a material subsidiary, and its dissolution will not affect the revenue or business of company.   

• Valiant Organics: The company’s unit Valiant Laboratories filed a draft red herring prospectus with SEBI regarding its proposed initial public offering by way of fresh issue of up to 1.15 crore equity shares for listing on BSE and NSE  
  Hardwyn India: The company allots 8.72 crore equity shares as fully paid bonus shares to existing shareholders of the company in a 1:3 ratio. 
  Ugro Capital: The Board has allotted 2,500 non-convertible debentures with a face value of Rs 1 lakh each through private placement. 

Asian stocks rose on Wednesday amid hopes of a stimulus in China, a positive sign in geopolitics and hints of more broad-based strength in U.S. equities bolstering sentiment.

Stocks in Hong Kong advanced more than 1%, and a measure of U.S.-listed Chinese companies jumped 3.8% overnight. Stocks in South Korea and Australia also climbed, while Japanese shares erased earlier gains.

U.S. stock futures were little changed Wednesday. A rotation into financial shares on Tuesday suggested the breadth of the S&P 500’s recent rally might extend beyond technology soon. The small gain on Wall Street Tuesday still left the S&P 500 just short of a bull market. Still, for the second time in three days, the Russell 2000 beat the tech-heavy Nasdaq 100 by at least 2.5 percentage points.

The yield on the 10-year Treasury note in the U.S. was trading at 3.67%. Crude oil price was trading around the $76 mark, while Bitcoin rose above $27,000 level.

At 8:20 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India was up 0.48% at 18,717.5.

Domestic benchmarks advanced for the third day on Tuesday, recovering from the lows of the day to end marginally higher by market closing. I.T. sector had led the decline while realty and auto sectors were leading in trade. The Indian rupee strengthened 7 paise to 82.61 against the U.S. dollar. 

Overseas investors in Indian equities turned net buyers after three continuous days of net selling on Tuesday, making it the first net buying in the month of June so far. Foreign portfolio investors mopped up stocks worth Rs 385.71 crore, while domestic institutional investors turned net sellers after net buying for three days in a row and offloaded equities worth Rs 489.02 crore, the NSE data showed.