Indices trade with strong gains; FMCG shares correct

Key equity barometers continued to trade with strong gains in mid-afternoon trade. The Nifty managed to trade above the 15,100 mark. FMCG shares witnessed some bit of profit booking after a two-day winning streak.

At 14:27 IST, the barometer index, the S&P BSE Sensex, was up 622.9 points or 1.26% to 50,203.63. The Nifty 50 index added 183.85 points or 1.23% to 15,107.00.

In the broader market, the S&P BSE Mid-Cap index rose 1.57%. The S&P BSE Small-Cap index gained 1.14%.

Buyers outpaced sellers. On the BSE, 1917 shares rose and 1107 shares fell. A total of 173 shares were unchanged.

Economy:

The Reserve Bank of India (RBI) in its latest bulletin said that the biggest economic impact during the second wave has been on the demand outlook. RBI said demand has seen a sharp fall during the April-May period, but added that the situation is better than the first wave in 2020.

According to the central bank, loss of mobility, lower discretionary spending, lack of employment and inventory accumulation are some of the factors that indicate weaker demand during the second wave in India. While RBI said that the resurgence of Covid-19 has dented economic activity in the first half of Q1:2021-22, it has not yet debilitated it.

Buzzing Index:

The Nifty FMCG index declined 0.28% to 34,708.70 on profit selling. The index gained 2.20% in the past two sessions.

Godrej Consumer (down 3.13%), Colgate-Palmolive India (down 1.41%), ITC (down 1.22%), Marico (down 0.95%) and Dabur India (down 0.80%) declined.

Jubilant Foodworks (up 5.15%), United Breweries (up 1.55%), United Spirits (up 1.34%), Nestle India (up 0.74%) and Varun Beverages (up 0.48%) advanced.

Earnings Impact:

Orient Cement rose 3.58% to Rs 126 after the company's net profit increased 126.6% to Rs 99.88 crore in Q4 FY21 compared with Rs 44.07 crore in Q4 FY20. Net sales during the quarter increased 27.1% to Rs 831.62 crore in the fourth quarter compared with the same period last year.

Kalyani Steels rose 3.49% to Rs 385.75 after the company's consolidated net profit surged to Rs 75.68 crore in Q4 FY21 from Rs 22.66 crore in Q4 FY20. Revenue from operations increased by 39.3% year-on-year (YoY) to Rs 377.23 crore during the quarter.

Numbers to Track:

In the foreign exchange market, the partially convertible rupee rose to 72.9975 compared with its previous closing of 73.22.

MCX Gold futures for 4 June 2021 settlement shed 0.29% to Rs 48,333.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.43% to 89.78.

The yield on 10-year benchmark federal paper rose to 5.975% as compared to its previous close of 5.972%.

In the commodities market, Brent crude for July 2021 settlement rose 43 cents to $69.89 a barrel. The contract added 75 cents or 1.09% to settle at $69.46 in the previous trading session.

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