Extending their winning run for
the third consecutive session, Indian equity benchmarks ended marginally higher
on Wednesday led by gains in index heavyweight Tata Steel, Power Grid
Corporation, along with Metal and Oil & Gas stocks. After making a cautious
start, markets slipped into red as traders were concerned after Moody's sees
some of its India's large corporates with foreign currency debt facing
refinancing risk in calendar year 2024 (CY24). This would be owing to a
combination of higher interest risk in the international financial market and a
likely deterioration in their finances. However, the domestic indices staged
recovery in early noon deals, driven by encouraging WPI inflation data. India's
inflation based on wholesale price index (WPI) maintained the declining trend
in the month of May 2023 at (-) 3.48% as against (-) 0.92% recorded in April
2023. Decline in the rate of inflation is primarily contributed by fall in
prices of food articles, non-food articles and crude petroleum & natural
gas, coal, mineral oils and electricity. Markets added gains in afternoon
deals, amid foreign fund inflows. According to the provisional data available
on the NSE, foreign institutional investors (FII) purchased shares worth net Rs
1,677.60 crore on June 13. Sentiments remained positive with Reserve Bank of
India Governor Shaktikanta Das' statement that India's economic growth in the
past few years is mainly driven by robust domestic demand and the country will continue
to remain among the fastest-growing large economies in 2023. He also said the
Indian economy had made rapid gains and has gradually integrated with the
global economy over the years. But, markets trimmed some gains in final minutes
of trade as some concern came after a private Weather forecasting agency
predicted a bleak monsoon in India over the next four weeks, raising concerns
about the impact on agriculture. Finally, the BSE Sensex rose 85.35 points or
0.14% to 63,228.51 and the CNX Nifty was up by 39.75 points or 0.21% to
18,755.90.
The US markets ended mostly
higher on Wednesday after the Fed announced its widely expected decision to
pause its interest rate increases following ten consecutive rate hikes but also
forecast additional increases later this year. The Fed said it has decided to
maintain the target range for the federal funds rate at 5 to 5.25 percent,
marking the first time the central bank has left rates unchanged since January
2022. Leaving rates unchanged will allow the Federal Open Market Committee the
opportunity to assess additional information and its implications for monetary
policy, the Fed said. However, the central bank's latest projections suggest
the Fed plans to resume raising rates later this year, forecasting a rate of
5.6 percent by the end of 2023. If the Fed decided to revert to its recent
quarter-point increases, the forecast suggests the central bank will raise
rates two more times this year. On the sectoral front, Airline stocks moved
sharply higher on the day, with the NYSE Arca Airline Index soaring by 2.1
percent to a one-year closing high. Significant strength was also visible among
semiconductor stocks, as reflected by the 1.5 percent gain posted by the
Philadelphia Semiconductor Index. The index also reached its best closing level
in over a year. On the other hand, banking stocks came under pressure following
the Fed announcement, dragging the KBW Bank Index down by 1.8 percent.
Crude oil futures ended lower on
Wednesday, giving up early gains, as data showed a notable increase in U.S.
crude inventory in the week ended June 9th. Data released by the Energy
Information Administration (EIA) showed crude inventories in the U.S. surged by
7.919 million barrels last week, substantially larger than the expected
increase of about 1.48 million barrels. The EIA data also showed the gasoline
stockpile rose by 2.108 million barrels last week, more than three times the
expected increase of about 0.637 million barrels. Benchmark crude oil futures
for July delivery fell $1.15 or about 1.7 percent to settle at $68.27 a barrel
on the New York Mercantile Exchange. Brent crude for August delivery dropped
$1.09 or 1.5 percent to settle at $73.20 a barrel on London's Intercontinental
Exchange.
Indian rupee ended higher against
the US dollar on Wednesday helped by robust macro fundamentals, FII inflows and
a weak greenback against major rivals overseas. India's inflation based on
wholesale price index (WPI) maintained the declining trend in the month of May
2023 at (-) 3.48% as against (-) 0.92% recorded in April 2023. Decline in the
rate of inflation is primarily contributed by fall in prices of food articles,
non-food articles and crude petroleum & natural gas, coal, mineral oils and
electricity. On the global front, sterling ticked higher versus the dollar on
Wednesday after data showed Britain's economy grew modestly in April. Finally,
the rupee ended at 82.10 (Provisional), stronger by 15 paise from its previous
close of 82.25 on Tuesday.
The FIIs as per Wednesday's data
were net buyers in equity segment, while net sellers in debt segment. In equity
segment, the gross buying was of Rs 12854.97 crore against gross selling of Rs
10654.64 crore, while in the debt segment, the gross purchase was of Rs 902.23
crore against gross selling of Rs 838.47 crore. Besides, in the hybrid
segment, the gross buying was of Rs 152.93 crore against gross selling of Rs
555.36 crore.
The US markets ended mostly in
green on Wednesday after the US Federal Reserve did not alter the interest
rates, but signalled in new projections that the key lending rate might need to
rise by as much as half of a percentage point by the end of this year. Asian
markets are trading mostly higher on Thursday after China's central bank cut
its key one-year interest rate to support real estate and domestic demand.
Indian markets ended higher for a third straight trading session on Wednesday
led by gains in index heavyweight Reliance Industries, along with FMCG and
metal stocks. Today, markets are likely to get cautious start following a
hawkish rate pause by the US Fed announced overnight. There will be concerned
with a private report stating that the sowing of kharif crops such as paddy,
pulses and oilseeds is likely to be delayed with the sluggish progress of
monsoon following a late onset over the Kerala coast on June 8. Some
cautiousness will come as domestic rating agency Crisil said the growth in
aggregate GST collection for states is likely to moderate to 12-14 per cent in
FY24 from 20 per cent in FY23. However, foreign fund inflows likely to aid
domestic sentiments. According to the provisional data available on the NSE,
foreign institutional investors (FII) purchased shares worth a net Rs 1,714.72
crore on June 14. Besides, International Energy Agency (IEA) chief Fatih Birol
said India will soon overtake China as the largest driver of global oil demand
even as it has an opportunity to become a world leader in green hydrogen
production. There will be some reaction in IT stocks as a private report
reiterated its negative stance on Indian information technology (IT) services
and downgraded the sector to underweight, as it believes the overall demand
environment for the sector still remains weak. Among stocks, it has placed
Infosys, TCS, MphasiS in its negative catalyst watch. Jewellery industry stocks
will be in focus as the Gem Jewellery Export Promotion Council (GJEPC) said the
overall gems and jewellery exports witnessed a decline of 10.70 per cent in May
at Rs 22,693.41 crore ($2,755.90 million). There will be some reaction in auto
and auto ancillary industry stocks with a private report that the Cabinet is
likely to approve a Rs 25,000 crore scheme for semiconductor manufacturing in
the country. Tourism industry stocks will be in limelight as India generated an
income of $7,400 million through medical tourism over the last decade, and the
figure is expected to rise to $43,500 million in the next 10 years.
Support
and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
18,755.90
|
18,707.36
|
18,787.06
|
BSE
Sensex
|
63,228.51
|
63,070.01
|
63,330.53
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Steel
|
666.96
|
113.75
|
112.10
|
114.70
|
NTPC
|
150.62
|
187.00
|
185.44
|
188.49
|
ICICI
Bank
|
134.89
|
939.15
|
934.61
|
945.31
|
Tata
Motors
|
127.13
|
569.75
|
565.44
|
572.64
|
HDFC
Bank
|
100.57
|
1601.75
|
1597.30
|
1609.10
|
Reliance Industries has continued to top the Indian corporates in the 2023 edition of The Global 2000 published by Forbes.
Kotak Mahindra Bank is planning to raise funds by way of issuance of Unsecured, Redeemable, Non-Convertible Debentures / Bonds, in one or more tranches / series, on a private placement basis, during the FY 2023-24 under the prevailing Members' approval.
The Security Appellate Tribunal has stayed Irdai's decision to transfer policy liabilities of Sahara India Life Insurance to SBI Life.
Maruti Suzuki India is all set to introduce a new Multi-Purpose Vehicle, named INVICTO to the market and the launch is expected in July 2023.