Market Wrap Podcast, June 4: Here's all that happened in the markets today

Benchmark indices succumbed to profit booking, even as healthy buying continued in the broader market space, after the Reserve Bank of India (RBI) kept repo rate unchanged for the sixth consecutive time at 4 per cent and maintained the policy stance as Accommodative.

The six-member monetary policy committee (MPC), however, revised the growth projection downward to 9.5 per cent from 10.5 per cent for the current financial year and revised the inflation projection upward to 5.1 per cent.

Furthermore, it announced the third tranche of bond buying worth Rs 40,000 crore under G-SAP 1.0. It also announced G-SAP 2.0, under which it will buy bonds worth Rs 1.2 trillion.

Given this, 10-year government bond yields hardened by 0.45 per cent to top 6 per cent-mark while the equity markets witnessed selling.

The benchmark S&P BSE Sensex tumbled 436 points from the day's high and hit a low of 51,953. It, however, trimmed losses marginally to settle the day at 52,100 levels, down 132 points or 0.25 per cent.

On the NSE, the Nifty50 index dropped 64 points from the record high level of 15,734, touched earlier in the day, to close at 15,670 levels.

The frontline indices were dragged down largely by banking and FMCG counters such as Nestle India, SBI, ICICI Bank, HDFC Bank, HUL, Axis Bank, and Titan.

Overall, the Nifty Bank index ended 1 per cent lower, followed by the Nifty Private Bank and FMCG indices, down 0.8 per cent and 0.4 per cent, respectively. On the upside, the Nifty Metal and Realty indices clocked gains up to 1.3 per cent.

That said, market participants continued to buy stocks in the broader markets after the RBI announced a special, Rs 15,000 crore-liquidity window for sectors like travel and toursim, tour operators, hotels, restaurants, aviation and related companies, spa clinics and beauty parlours.

The BSE MidCap index advanced 0.63 per cent while the BSE SmallCap index added 0.78 per cent. Both the indices hit record peak levels of 22,540 and 24,280, respectively in intra-day trade.

Among individual stocks, Indian Hotels hit a fresh 52-week high of Rs 144, up 6 per cent on the BSE on the back of nearly two-fold jump in trading volumes. Royal Orchid Hotels surged 10 per cent, followed by Taj GVK Hotels & Resorts (8 per cent), EIH (up 7 per cent) and Lemon Tree Hotels (up 5 per cent).

Meanwhile, liquor stocks like United Breweries, Globus Spirits, United Spirits, IFB Agro Industries, and Radico Khaitan surged between 1 per cent and 8 per cent.

Among other news driven stocks, shares of Bharat Forge moved higher by 9 per cent to Rs 758, also its 52-week high, on the BSE in intra-day trade after the company reported a consolidated profit after tax of Rs 212 crore for the March quarter on healthy sales income. The auto ancillary company had posted a loss of Rs 68.6 crore in Q4FY20.

That apart, Adani Enterprises has now become the second most valuable company among the Gautam Adani-led Adani Group of companies as the stock hit a new high of Rs 1,713 after rallying 8 per cent on the BSE in intra-day trade. The stock was trading higher for the fifth straight day and has rallied 30 per cent during the week.

Adani Enterprises, the flagship of Adani Group, has now surpassed other group company Adani Total Gas to become the second-most valuable Group companies after Adani Green.

Global markets
 

European stocks inched higher on Friday in cautious trading ahead of US jobs data with the pan-European STOXX 600 index was up 0.1 per cent.

Earlier in Asia, Japan's Nikkei and South Korea's Kospi had slipped 0.4 per cent and 0.2 per cent, respectively. China's Shanghai Composite and Australia's ASX200 index, meanwhile, gained 0.2 per cent and 0.5 per cent, respectively.