Post Session: Quick Review

Indian equity markets headed for a second straight day of gains on Wednesday overlooking weak cues from Wall Street overnight. Investors continued to hunt for fundamentally strong stocks during the day. In most part of day, markets maintained their head above neutral line. Sector wise, IT and Banking stocks were supportive for the Indices, while hefty losses in metal counters, forced the markets to trade with limited gains. The broader indices, BSE Mid cap index ended above half a percent, while Small cap index concluded with minor gains amid profit booking. 

Markets made slightly positive start, as traders got support after the India Meteorological Department (IMD) said that India’s stalled monsoon is likely to gain momentum in the next 3-4 days and could cover key rice, soybean, cotton and sugarcane growing regions in the southern, central and western states. Further, in late morning session, indices trimmed some of their gains, amid Foreign fund outflows from domestic markets. However, markets managed to gain strength, as sentiments turned positive after a labour bureau has said that retail inflation for farm workers and rural labourers eased to 5.99 per cent and 5.84 per cent, respectively, in May 2023. Point-to-point rate of inflation based on the CPI-AL (consumer price index-agricultural labourers) and CPI-RL (rural labourers) stood at 6.50 per cent and 6.52 per cent respectively in April 2023 and 6.67 per cent and 7.00 per cent respectively during the corresponding month (May 2022) of the previous year. Markets enlarged their gains in late afternoon session and both Sensex and Nifty ended above 63500 and 18850 levels, respectively.   

On the global front, European markets were trading mostly in green as investors reacted to stronger than expected U.K. inflation data and awaited Federal Reserve chairman Jerome Powell's testimony before the House Financial Services Committee and the Senate Banking Committee. Asian markets ended mostly higher with limited gains amid disappointment over a lack of additional stimulus in China and lingering uncertainty over Fed's interest-rate plans weighing on sentiment. Back home, the Retirement fund body, Employees' Provident Fund Organisation (EPFO) in its latest ‘Provisional Estimate of Net Payroll’ data report has showed that India created 1719998 new jobs in the month of April 2023. During 2022-23, EPFO has added 1.39 crore net members as compared to the net addition of 1.22 crore during 2021-22.

The BSE Sensex ended at 63,523.15, up by 195.45 points or 0.31% after trading in a range of 63,315.62 and 63,588.31. There were 14 stocks advancing against 16 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.68%, while Small cap index was up by 0.24%. (Provisional)

The top gaining sectoral indices on the BSE were Utilities up by 1.19%, Power up by 1.08%, Telecom up by 0.81%, Oil & Gas up by 0.57% and Energy was up by 0.53%, while Metal down by 0.94%, FMCG down by 0.46%, Realty down by 0.30%, Industrials down by 0.13% and Auto was down by 0.12% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Power Grid up by 3.68%, HDFC Bank up by 1.71%, HDFC up by 1.66%, Tech Mahindra up by 1.13% and TCS up by 0.94%. On the flip side, Mahindra & Mahindra down by 1.59%, ITC down by 1.29%, Indusind Bank down by 0.87%, Axis Bank down by 0.83% and Maruti Suzuki down by 0.62% were the top losers. (Provisional)

Meanwhile, the White House has said that India will be a critical strategic partner for the US in the coming decades, and asserted that Prime Minister Narendra Modi's State Visit to the country will affirm the deep and close partnership between the two nations. Modi is visiting the US from June 21-24 at the invitation of President Joe Biden and First Lady Jill Biden, who will host him at a State Dinner on June 22. The visit also includes an address by the prime minister to the joint session of the US Congress on June 22.

National Security Council Coordinator for Strategic Communications (NSCCSC) John Kirby said India's growing commitment to playing a more ‘engaged international role, including in the Indo-Pacific Quad, demonstrates a new and growing willingness to join the United States to protect and advance a shared vision of a free, open, and rules-based global order’. Kirby said that ‘as we think about the future of artificial intelligence, quantum computing, and building resilient supply chains for clean energy technologies, semiconductors, and other critical and emerging technology, countering climate change, the future of our workforces, and global health, energy, food security, there is no partner more consequential than India’.

He further said the Official State Visit of the prime minister will affirm the deep and close partnership between the US and India, and the warm bonds of family and friendship that link Americans and Indians together. He said ‘the visit will strengthen our two countries' shared commitment to a free, open, prosperous, and secure Indo-Pacific and our shared resolve to elevate its strategic technology partnership, including in defence, clean energy, and space’. Kirby added that the leaders will discuss ways to further expand educational exchanges and people-to-people ties as well as work together to confront common challenges from climate change to workforce development and health security. He said as the world's oldest and largest democracies and as key net security providers in the Indo-Pacific, the US and India are increasingly partners of first resort as a combined force for global good.

The CNX Nifty ended at 18,856.85, up by 40.15 points or 0.21% after trading in a range of 18,794.85 and 18,875.90. There were 23 stocks advancing against 26 stocks declining on the index. (Provisional)

The top gainers on Nifty were Power Grid up by 3.80%, ONGC up by 1.88%, HDFC Bank up by 1.75%, HDFC up by 1.63% and Adani Ports up by 1.58%. On the flip side, Hindalco down by 1.87%, JSW Steel down by 1.86%, Mahindra & Mahindra down by 1.59%, Divi's Lab down by 1.59% and ITC down by 1.28% were the top losers. (Provisional)

European markets were trading mostly in green, UK’s FTSE 100 increased 5.41 points or 0.07% to 7,574.72 and Germany’s DAX gained 23.28 points or 0.14% to 16,134.60. On the flip side, France’s CAC was down by 4.21 points or 0.06% to 7,289.96. 

Asian markets settled mostly higher on Wednesday ahead of US Fed Chair's congressional testimony later in the day for clues to the outlook for monetary policy. Japanese shares gained after Japanese central bank’s April meeting minutes showed that most board members had no intention of altering the BoJ’s ultra-loose policy in the near-term. However, Chinese shares declined on concerns over a lack of additional stimulus measures from Beijing.