The domestic equity barometers ended with strong gains on Thursday, snapping a two-day losing run. After a negative opening, the Nifty took support near 16,450 levels and reversed the trend in morning session. Good GST collection and PMI data in May boosted sentiment. A correction in crude oil prices also supported buying.
The barometer index, the S&P BSE Sensex, was up 436.94 points or 0.79% to 55,818.11. The Nifty 50 index rose 105.25 points or 0.64% to 16,628.
Oil & gas, IT and metal shares were in demand. On the other hand, autos and financial services stocks declined.
Reliance Industries (up 3.51%), Bajaj Finserv (up 2.88%), Sun Pharmaceutical Industries (up 2.35%), TCS (up 1.98) and Infosys (up 1.96%) were major index movers.
In the broader market, the S&P BSE Mid-Cap index fell 0.04% while the S&P BSE Small-Cap index added 0.60%.
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The market breadth was positive. On the BSE 1,970 shares rose while 1,339 shares fell. A total of 135 shares were unchanged.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 2.51% to 20.32.
COVID-19 Update:
India's active caseload currently stands at 19,509. In the last 24 hours, 3,712 new cases and 2,584 recoveries have been recorded. The daily positivity rate is 0.67%. The recovery rate currently is at 98.74%.
The media reported that Maharashtra CM Uddhav Thackeray has called a meeting of the COVID-19 task force today, in the view of surging COVID-19 cases in the state.
Numbers to Watch:
The yield on India's 10-year benchmark federal paper rose to 7.436% as compared with 7.414% at close in the previous trading session.
In the foreign exchange market, the rupee was lower against the dollar. The partially convertible rupee was hovering at 77.595, compared with its close of 77.5 during the previous trading session.
MCX Gold futures for 3 June 2022 settlement rose 0.44% to Rs 51,012.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, decreased 0.25% to 102.25.
In the commodities market, Brent crude for August 2022 settlement fell $2.89 or 2.49% at $113.40 a barrel. The contract fell 69 cents or 0.60% to settle at $116.29 a barrel during the previous trading session. The losses came after the media reported Saudi Arabia is ready to pump more oil if Russian output declines.
Global Markets:
The Dow Jones futures were up 153 points, indicating a positive opening in the US stock market today.
Most of the European shares advanced on Thursday as traders continued to assess new data on inflation and economic activity. The U.K.'s FTSE 100 will remain shut on Thursday and Friday for the Queen's Platinum Jubilee celebrations.
Investors are still digesting euro zone inflation numbers which hit an annual 8.1% in May, exceeding expectations and marking a seventh consecutive record high. Russia's onslaught in Ukraine is also front and center, as well as the recent EU announcement of a partial ban for Russian oil imports. OPEC and non-OPEC oil producers, which include Russia, will meet Thursday for a regular policy meeting.
Meanwhile, most Asian shares declined on Thursday, amid worries over high inflation and the threat of recession.
In US, the number of April job openings, released Wednesday, declined sharply from the previous month but the findings suggest the job market remains tight. Further, the Institute for Supply Management said its manufacturing PMI came in at 56.1 for May, up from 55.4 the month before.
Buzzing Indian Segment:
The Nifty Oil & Gas index jumped 2.28% to 7,975.40. The index fell 1.12% in the past two sessions.
Adani Total Gas (up 4.91%), Aegis Logistics (up 3.12%), Oil India (up 2.31%), ONGC (up 1.80%), Gujarat Gas (up 1.80%), HPCL (up 1.22%), BPCL (up 1.10%), Petronet LNG (up 1.01%) and Castrol India (up 0.94%) jumped.
Index heavyweight Reliance Industries (RIL) advanced 3.51%. Reliance Brands (RBL) and Plastic Legno SPA have signed a joint venture arrangement through which RBL will acquire a 40% stake in Plastic Legno SPA's toy manufacturing business in India. This investment by RBL serves a dual purpose, bringing in vertical integration for RBL's toy business and helping diversify the supply chain with a long-term strategic interest in building toy manufacturing in India.
Stocks in Spotlight:
Religare Enterprises surged 10.78% after the company said its lenders in principally agreed to the proposed one time settlement of Religare Finvest. Religare Finvest Limited (RFL), a wholly-owned subsidiary of Religare Enterprises (REL), has been a victim of siphoning off of funds by its erstwhile promoters. It has initiated and pursuing legal actions for recovery and now begun its path towards revival. Post RFL's one time settlement completion, it will have healthy prudential ratios well above those prescribed by RBI, REL said in a statement.
Vedanta rose 1.79% after the company said that its board will meet on Saturday, 4 June 2022, to consider raising funds by issuing non-convertible debentures in one or more tranches. The company proposes to offer rated, secured, redeemable, non-cumulative and non-convertible debentures aggregating up to Rs 4,100 crore.
Welspun Corp gained 2.22% after the East Pipes Integrated Company, the associate company of Welspun Corp, has signed a contract with the Saline Water Conversion Corporation valued at 490 million Saudi Riyal. The order is for supplying and deliver steel pipes for a water transmission project, which will span a period of 12 months. The financial impact will reflect in East Pipes' financial statements in 2022/2023.
Greaves Cotton rose 2.01% after the company announced that Abdul Latif Jameel International DMCC will infuse $150 million (Rs 1160 crore) for 35.8% stake in company's wholly owned subsidiary, Greaves Electric Mobility ("GEMPL"). GEMPL has the right to secure additional funding of $70 million from investor over the next 12 months. Post money equity value for Greaves Electric Mobility stands at $419 million or Rs 3238 crore. Greaves Cotton market cap stand at Rs 3745 crore. Greaves Electric will continue to remain subsidiary of Greaves Cotton even after both the rounds of fund infusion.
Hero MotoCorp fell 3.43% after the company said that the company had sold 486,704 two-wheeler units in May 2022 as against 183,044 units sold in May 2021. Hero MotoCorp stated that the sales in May 2021 were impacted due to the resurgence in Covid-19 cases and subsequent lockdowns.
Balaji Amines gained 1.74% after the company said that board of its material subsidiary, Balaji Speciality Chemicals (BSCL), approved raising funds through an initial public offering (IPO). The IPO will include fresh issue of equity shares aggregating upto Rs 250 crore and/or an offer of sale of equity shares by certain existing and eligible shareholders of the company.
Mishtann Foods hit an upper circuit of 5% at Rs 11.90 after the company said that it good response for Mishtann Pink Rock Salt and has bagged orders from major retail stores for 1700 metric tonnes. The supply of these orders will commence from July 2022.
Knowledge Marine & Engineering Works (KMEW) rose 2.04% after the company said that it has bagged a contract worth Rs 67.85 crore from the state owned Dredging Corporation of India (DCI).
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