Indices were in a free fall downward spiral in todays trade, as trends revealed that INDIA block has put up a better fight than anticipated and that Prime Minister Narendra Modi-led NDA is unlikely to win with a huge margin. BSE Sensex and Nifty50 have plummeted almost 6%, a stark reversal from Monday's 3% gains driven by exit poll projections of a decisive NDA victory.
As per provisional closing data, the barometer index, the S&P BSE Sensex was tumbled 4,389.73 points or 5.74% to 72,079.05. The Nifty 50 index tanked 1,379.40 points or 5.93% to 21,884.50.
The broader market underperformed the headline indices. The S&P BSE Mid-Cap index dropped 8.07% and the S&P BSE Small-Cap index slumped 6.79%.
The market breadth was skewed in favor of declines. On the BSE, 496 shares rose and 3,341 shares fell. A total of 97 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, soared 23.65% to 25.89
IPO Update:
The initial public offer (IPO) of Kronox Lab Sciences received 14,25,58,020 bids for shares as against 66,99,000 shares on offer, according to stock exchange data at 15:15 IST on Tuesday (04 June 2024). The issue was subscribed 21.28 times.
The issue opened for bidding on Monday (03 June 2024) and it will close on Wednesday (05 June 2024). The price band of the IPO is fixed between Rs 129 to Rs 136 per share. An investor can bid for a minimum of 110 equity shares and in multiples thereof.
Buzzing Index:
The Nifty PSU Bank index tanked 15.14% to 6,794.25. The index rallied 9.78% in the past two consecutive trading sessions.
Union Bank of India (down 17.65%), Bank of Baroda (down 15.81%), Central Bank of India (down 15.63%), Punjab National Bank (down 15.44%), Indian Overseas Bank (down 14.07%), Canara Bank (down 13.57%), Punjab & Sind Bank (down 13.52%), State Bank of India (down 13.42%), Bank of India (down 13.39%) and Indian Bank (down 13.25%) declined.
Stocks in Spotlight:
Wipro declined 1%. The company announced that it has appointed Bruno Schenk as the country head and managing director (MD) for Switzerland effective immediately.
Mahindra & Mahindra Financial Services (Mahindra Finance) slipped 4.91%. The firm recorded an overall disbursement of approximately Rs 4,430 crore in May 2024, delivering 7% year on year (YoY) growth.
Kalyan Jewellers India slipped 1.14%. The company said that it has signed definitive agreement with Rupesh Jain to acquire 15% stake in Enovate Lifestyles for total consideration of Rs 42 crore
Rail Vikas Nigam tumbled 13.07%. The company announced that it has received a letter of acceptance (LoA) for engineering, procurement and construction (EPC) order from South Central Railway worth Rs 440 crore.
Redington lost 1.59%. The firm said that its board has recommended a dividend of Rs 6.20 per share for the financial year ended 31 March 2024, subject to the approval of shareholders.
Biocon fell 5.45%. The company announced that it has received approval from the U.S. Food and Drug Administration (US FDA), for its vertically integrated, complex injectable drug product, Micafungin.
Sapphire Foods India shed 0.41%. The company said that its board will meet on Wednesday, 19 June 2024, to consider a proposal for sub-division/split of existing equity shares of the company.
MOIL tanked 12.40%. The company said that it has recorded monthly managanese ore sales of 2.15 lakh tones in May 2024, registering a growth of 41% over May 2023.
Global Markets:
Markets in Europe and Asia declined on Tuesday. This comes as global investors grapple with the possibility that the exceptional growth of the US economy might be coming to an end. This concern stems from further signs of weakness in US manufacturing activity.
Oil prices continued their decline, with both US crude ($73.91/barrel) and Brent crude ($78/barrel) reaching four-month lows. This follows the decision by OPEC+ to gradually increase production, reducing overall output cuts.
US stocks opened June on a negative note. The Dow Jones Industrial Average fell after weak manufacturing data raised doubts about the economy's strength. Sectors reliant on economic growth, such as banks and industrials, led the decline. Despite the Dow's decline, the broader S&P 500 and tech-heavy Nasdaq Composite managed small gains.
The U.S. manufacturing sector showed signs of slowing, with the ISM manufacturing index measuring 48.7 in May, sending Treasury yields and the dollar lower. A reading below 50 is an indication of a contraction.
On Monday, U.S. Treasury yields fell to the lowest point in two weeks. The 2-year yield was 6 basis points lower while the 10-year yield was down 11 basis points.
On a brighter note, chipmaker Nvidia defied the market trend with a near 5% surge on Monday. This rise came after the company announced a new line of artificial intelligence chips, showcasing their commitment to staying competitive in the rapidly evolving market.
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