Sensex up 170 pts; European mrkt advance

The domestic equity benchmarks continued to trade in positive terrain with minor gains in early afternoon trade. The Nifty traded above the 23,500 level after the hitting days low of 23,350 in morning trade. Consumer durables, FMCG and auto shares advanced while media, metal and oil & gas shares declined.

At 13:30 IST, the barometer index, the S&P BSE Sensex, was up 170.39 points or 0.22% to 77,380.21. The Nifty 50 index rose 43.75 points or 0.19% to 23,544.85.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.45% and the S&P BSE Small-Cap index added 0.46%.

 

The market breadth was positive. On the BSE, 2,122 shares rose and 1,789 shares fell. A total of 172 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 6.44% to 14.03.

Economy:

After hitting all-time high levels following continuous gains, Indias foreign exchange (forex) reserves fell $2.922 billion to $652.895 billion during the week ended June 14, according to the latest data from the Reserve Bank of India (RBI).

This decline follows a significant increase of $4.307 billion in the previous reporting week, which pushed the reserves to a record high of $655.817 billion after several consecutive weeks of gains.

The decrease in forex reserves was primarily driven by a reduction in foreign currency assets, which are a major component of the reserves. These assets fell by $2.097 billion, bringing the total to $574.24 billion.

Gold reserves also saw a decrease, dropping by $1.015 billion to $55.967 billion during the week. Meanwhile, the special drawing rights (SDRs) were down by $54 million, amounting to $18.107 billion. In contrast, Indias reserve position with the International Monetary Fund (IMF) increased by $245 million, reaching $4.581 billion.

Gainers & Losers:

Power Grid Corporation of India (up 2.38%), Sun Pharmaceutical Industries (up 2.10%), Apollo Hospitals Enterprise (up 1.86%), Shriram Finance (up 1.65%) and Mahindra & Mahindra (up 1.64%) were major Nifty gainers

IndusInd Bank (down 2.23%), Cipla (down 1.96%), Adani Ports and Special Economic Zone (down 1.78%) Tata Steel (down 1.67%) and Coal Inda (down 1.36%) were major Nifty losers

Stocks in Spotlight:

Larsen & Toubro (L&T) rose 0.84%. The company announced that its power transmission & distribution (PT&D) business has secured a significant domestic order to build Solar PV Plant along with a Battery Energy Storage System (BESS).

Lupin rose 0.84% after the company announced that it has received an Establishment Inspection Report (EIR) from the United States Food and Drug Administration (USFDA) for its manufacturing facility in Somerset at New Jersey.

Hero MotoCorp rose 1.03%. The company increase in prices for select motorcycles and scooters with effect from 1 July 2024.

Rail Vikas Nigam (RVNL) gained 1.82% after the company emerged as lowest bidder (L-1) for an EPC project from South Eastern Railway worth Rs 191.53 crore.

Biocon shed 0.39%. The company said that its subsidiary Biocon Biologics has received approval from the European Medicines Agency (EMA) to manufacture biosimilar Bevacizumab at its new multi-product monoclonal antibodies (mAbs) drug substance facility at Bengaluru.

Ujjivan Small Finance Bank dropped 5.17% after the bank revised its loan book growth guidance for FY2024-25 downwards to 20% from nearly 25% announced earlier.

Welspun Specialty Solutions zoomed 12.11% after the firm has been selected as L1 bidder by Bharat Heavy Electricals (BHEL) for supply of stainless steel boiler tubes to National Thermal Power Corporation (NTPC)s thermal power project.

Global Markets:

European stocks advanced while Asian stocks traded mixed on Monday, with Chinese markets leading the decline. This drop was fueled by concerns of a potential trade war with the European Union.

The European Union's decision earlier in June to impose hefty tariffs on Chinese electric vehicles sparked tensions. Beijing reacted strongly, raising the possibility of a retaliatory trade war. Reports also suggested that China might impose tariffs on European automobiles in response.

In the US, the S&P 500 closed slightly lower on Friday, extending a two-day decline for tech giant Nvidia. The broad market index fell 0.16% to finish at 5,464.62, while the Nasdaq Composite dipped 0.18% to settle at 17,689.36. The Dow Jones Industrial Average edged up 15.57 points, or 0.04% to close at 39,150.33.

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