Sensex gains 692 pts; Nifty closes above 22,800; VIX tumbles 11.04%

06-Jun-24   15:55 Hrs IST
The domestic equity benchmarks ended with major gains on Thursday, rising for the second day in a row. The Nifty settled above the 22,800 level. Realty, media and PSU bank shares advanced while FMCG, healthcare and private bank shares declined. Trading was volatile due to the expiry of weekly index options on the NSE.

As per provisional closing data, the S&P BSE Sensex was gained 692.27 points or 0.93% to 75,074.51. The Nifty 50 index jumped 201.05 points or 0.89% to 22,821.40.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index jumped 2.28% and the S&P BSE Small-Cap index rallied 3.06%.

The market breadth was strong. On the BSE, 3,011 shares rose and 833 shares fell. A total of 101 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 11.04% to 16.80.

The BJP-led National Democratic Alliance (NDA) will establish the new government on Saturday, when Narendra Modi will be inaugurated as Prime Minister for a historic third consecutive term. The BJP has obtained written support from the leaders of the Telugu Desam Party (TDP) and Janata Dal (United) (JD-U).

Buzzing Index:

The Nifty Realty index surged 4.69% to 1,047.75. The index rallied 7.34% in two trading sessions.

Brigade Enterprises (up 10.43%), Sobha (up 7.8%), Macrotech Developers (up 7.16%), Prestige Estates Projects (up 7.11%), Godrej Properties (up 5.05%), Mahindra Lifespace Developers (up 4.67%), DLF (up 4.32%), Oberoi Realty (up 3.66%) and Sunteck Realty (up 1.11%) advanced.

Stocks in Spotlight:

Indian Energy Exchange (IEX) advanced 3.88% after the company informed that it has achieved 10,633 million units (MU) overall volume in May 2024, registering a growth of 28.9% YoY basis.

Rail Vikas Nigam jumped 4.87% after the company said that it has received letter of acceptance (LoA) from Eastern Railway for a project worth Rs 390.97 crore.

Bharat Heavy Electricals (BHEL) surged 9.23% after it received orders from Adani Power and its subsidiary, Mirzapur Thermal Energy aggregating to over Rs 7,000 crore.

Century Textiles & Industries soared 12.85% after the company?s wholly owned subsidiary, Birla Estates has entered into a joint venture (JV) with Barmalt India for a luxury residential group housing development in Gurugram, Delhi.

Indoco Remedies added 1.86% after the company has received tentative approval from the US Food and Drug administration (USFDA) for its abbreviated new drug application (ANDA) for canagliflozin and metformin tablets.

Orchid Pharma rallied 5.75% after the company said that it has received an approval from Drugs Controller General of India (DCGI) to manufacture and market its new chemical entity active pharmaceutical ingredient (API), Enmetazobactam.

Kalpataru Projects International jumped 7.31% after the civil construction company announced that the executive committee of its board is scheduled to meet on 10 June 2024 to consider the proposal of fund raising.

KPI Green Energy was locked in upper circuit of 5% after the company?s wholly owned subsidiary, Sun Drops Energia has received solar power project from various companies under Captive Power Producer (CPP).

Sun Pharma Advanced Research Company (SPARC) gained 4.67% after the company announced that Chetan Rajpara, chief finanacial officer (CFO) of the company has tendered his resignation effective from 5 June 2024.

Global Markets:

European and Asian stocks advanced on Thursday, buoyed by growing optimism for lower interest rates globally. The positive sentiment mirrored record highs on Wall Street's S&P 500 and NASDAQ, fueled in part by weak US labor data. This data rekindled expectations of a Federal Reserve rate cut by September.

The US Labor Department said job openings fell to 8.059 million in April, the lowest since 2021, from a downwardly revised 8.355 million in March.

Further fueling the rally were Wednesday's interest rate reduction by the Bank of Canada and anticipation of a similar move by the European Central Bank later that day. This confluence of events fueled hopes for a global decrease in borrowing costs.

Chip-related stocks climbed after market leader NVIDIA surged to a $3 trillion valuation on Wednesday, riding the wave of artificial intelligence (AI) enthusiasm. Positive comments from ASML Holding NV, the world's top manufacturer of semiconductor equipment, further bolstered investor confidence in the chipmaking sector. The market anticipates that rising AI demand will translate into a global surge for semiconductors.

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