Market hits record high; Nifty ends below 23,300; IT shares decline

10-Jun-24   15:47 Hrs IST
The domestic equity indices ended with limited losses on Monday, snapping a three-day rising streak. The Nifty closed below the 23,300 level after hitting day?s high of 23,411.90 in early trade. Media, realty and pharma stocks advanced while IT, metal and private bank shares declined.

As per provisional closing data, the barometer index, the S&P BSE Sensex, was down 203.28 points or 0.27% to 76,490.08. The Nifty 50 index shed 30.95 points or 0.13% to 23,259.20.

The Sensex and Nifty clocked an all-time high of 77,079.04 and 23,411.90 in early trade.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index added 0.56% and the S&P BSE Small-Cap index gained 1.04%.

The market breadth was strong. On the BSE, 2,625 shares rose and 1,364 shares fell. A total of 140 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, declined 2.87% to 16.40.


India?s forex reserves jumped $4.837 billion to a new all-time high of $651.51 billion for the week ended May 31, according to the latest RBI data.

For the week ended May 31, foreign currency assets, a major component of the reserves, increased by $5.065.51 billion to $572.564 billion.

Gold reserves fell by $212 million to $56.501 billion during the week ended May 31. The special drawing rights (SDRs) were down $17 million to $18.118 billion.

India?s reserve position with the IMF was up $1 million to $4.326 billion in the reporting week, the apex bank data showed.

New Listing:

Shares of Kronox Lab Sciences ended at Rs 160 on the BSE, representing a premium of 17.65% as compared with the issue price of Rs 136.

The scrip was listed at Rs 165, exhibiting a premium of 21.32% to the issue price.

The stock has hit a high of 165 and a low of 156.80. On the BSE, over 3.94 lakh shares of the company were traded in the counter.

IPO Update:

The initial public offer (IPO) of Le Travenues Technology (Ixigo) received 6,69,34,140 bids for shares as against 4,37,69,494 shares on offer, according to stock exchange data at 15.30 IST on Monday (10 June 2024). The issue was subscribed 1.53 times.

The issue opened for bidding on Monday (10 June 2024) and it will close on Wednesday (12 June 2024). The price band of the IPO is fixed at Rs 88 to 93 per share. An investor can bid for a minimum of 161 equity shares and in multiples thereof.

Buzzing Index:

The Nifty IT index declined 1.85% to 34,519.90. The index added 4.33% in the past three consecutive trading sessions.

Coforge (down 4.02%), Mphasis (down 3.13%), Tech Mahindra (down 2.8%), Persistent Systems (down 2.53%), Infosys (down 2.26%), Wipro (down 2.01%), LTIMindtree (down 1.58%), HCL Technologies (down 0.95%), Tata Consultancy Services (down 0.92%) declined.

Stocks in Spotlight:

JSW Steel rose 0.14%. The company's consolidated crude steel production decreased 4% to 20.98 lakh tonnes in May 2024 as against 21.78 lakh tonnes recorded in May 2023.

Dr Reddy?s Laboratories rose 0.50%. The company said that US Food and Drug Administration (USFDA) issued form 483 with four observations post inspection at its Srikakulam, Andhra Pradesh manufacturing facility.

Wardwizard Innovations & Mobility (WIML) was locked in 20% upper circuit after the company announced that it has secured a significant order worth $1.29 billion from Beulah International Development Corporation.

Artson Engineering was locked in 5% upper circuit after the company announced that it has bagged a contract worth Rs 126.15 crore from Guwahati International Airport.

Raymond jumped 3.49% after its real estate division gets selected as the preferred developer for redevelopment of MIG VI CHS located in Bandra (East), Mumbai.

Railtel Corporation of India advanced 1.40% after the firm received work order from National Informatics Centre Services Incorporated worth Rs 81.45 crore.

Reliance Infrastructure surged 11.21% after the company?s subsidiary, Reliance Velocity (RVL) incorporated Reliance EV Private (REVPL) on 6 June 2024.

Borosil Renewables shed 0.26%. The company announced that the company will be issuing fully paid-up equity shares aggregating up to Rs 450 crore via rights issue.

KEC International rallied 5.46% after the company announced that it has secured new orders worth Rs 1,061 crore across its various businesses.

JSW Energy added 0.88%. The company announced that it has initiated the construction activities for its battery energy storage project (BESS) marking its foray into energy storage services.

The company has also commenced the construction of the 1.0 GWh BESS project awarded by Solar Energy Corporation of India (SECI) with commissioning expected by June 2025. The project consists of two installations, each with a 500 MWh storage capacity, designed for two hours of storage in one cycle. The project will be developed under a build own operate and transfer (BOOT) mechanism and will be transferred to the offtaker after 12 years.

Ahluwalia Contracts (India) advanced 2.64% after it received orders from Birla Arnaa LLP and Indian Financial Technology and Allied Services aggregating to Rs 482.78 crore.

Global Markets:

European shares declined after investors reacted to EU parliament election results indicates that populist, far-right parties could have a bigger hand in European policymaking over the next five years.

Meanwhile, a recent snap election call in France has injected broader political concerns into the market, causing the euro to weaken.

Asian stocks ended mixed on Monday. This shift comes after Friday's U.S. jobs report, which surprised analysts. The report indicated a stronger-than-expected labor market, with significant job creation and accelerating wage growth. This data has led investors to scale back their expectations of Federal Reserve interest rate cuts happening later in 2024.

The robust U.S. jobs data, released by the Bureau of Labor Statistics (BLS) on Friday, showed the creation of 272,000 new jobs in May. This surpassed analyst forecasts and came after a revised figure of 165,000 jobs added in April. Additionally, average hourly earnings rose 0.4% in May, following a 0.2% increase in April. Year-on-year wage growth climbed to 4.1% in May, compared to the upwardly revised 4.0% reported in April. Generally, wage growth within a 3.0% to 3.5% range aligns with the Fed's 2% inflation target. The average workweek remained steady at 34.3 hours.

Japan's revised GDP data for the first quarter (ending March 31, 2024) revealed a contraction of 1.8% year-on-year. This is an improvement from the initial estimate of a 2.0% decline. However, it still signifies a significant slowdown compared to the 0.4% growth observed in the previous quarter. On a quarterly basis, Japan's GDP fell 0.5%, matching the initial estimate.

U.S. markets closed strong on Friday. The S&P 500 reached a new intraday record high. The Dow Jones Industrial Average gained 0.29%, and the Nasdaq Composite rose 2.38%. Notably, Nvidia's stock price jumped 10% last week, driven by continued investor enthusiasm for the artificial intelligence leader. This surge pushed Nvidia's market capitalization past the $3 trillion mark.

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