Indices edge higher; breadth strong

The headline equity indices traded with minor gains in early trade. The Nifty traded above the 22,950 mark. Media, metal and PSU bank stocks advanced while healthcare, FMCG and auto shares declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, was up 138.13 points or 0.13% to 75,515.57. The Nifty 50 index added 17.20 points or 0.07% to 22,984.85.

In the broader market, The S&P BSE Mid-Cap index rose 0.11% and the S&P BSE Small-Cap index added 0.47%.

The market breadth was strong. On the BSE, 1,804 shares rose and 1,104 shares fell. A total of 97 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth a staggering Rs 4,670.95 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 146.51 crore in the Indian equity market on 23 May 2024, provisional data showed.

Stocks in Spotlight:

Interglobe Aviation (Indigo) rose 0.33%. The companys a consolidated net profit surged 106.14% to Rs 1,894.82 crore in the quarter ended March 2024 as against Rs 919.20 crore during the previous quarter ended March 2023. Sales jumped 25.88% to Rs 17825.27 crore in the quarter ended March 2024 as against Rs 14160.60 crore during the previous quarter ended March 2023.

Honasa Consumer (Mamaearth) rallied 4.40% after the company reported consolidated net profit of Rs 30.48 crore in the quarter ended March 2024 as against net loss of Rs 159.97 crore during the previous quarter ended March 2023. Sales jumped 21.46% to Rs 471.09 crore in the quarter ended March 2024 as against Rs 387.86 crore during the previous quarter ended March 2023.

Schneider Electric Infrastructure locked in a 5% lower circuit after the companys net profit of tumbled 92.69% to Rs 3.28 crore in the quarter ended March 2024 as against Rs 44.84 crore during the previous quarter ended March 2023. Sales jumped 14.92% to Rs 471.75 crore in the quarter ended March 2024 as against Rs 410.51 crore during the previous quarter ended March 2023.

Numbers to Track:

The yield on India's 10-year benchmark federal rose 0.01% to 6.998 as compared with previous close 6.997.

In the foreign exchange market, the rupee is edged higher against the dollar. The partially convertible rupee was hovering at 83.2100, compared with its close of 83.2975 during the previous trading session.

MCX Gold futures for 5 June 2024 settlement shed 0.56% to Rs 71,909.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.01% to 105.11.

The United States 10-year bond yield fell 0.16% to 4.470.

In the commodities market, Brent crude for July 2024 settlement gained 3 cents or 0.04% to $ 81.39 a barrel.

Global Markets:

Most of the Asian stocks declined on Friday, while the dollar strengthened as positive U.S. economic data increased expectations of sustained higher interest rates and a delayed rate cut by the Federal Reserve, dampening investor appetite for riskier assets.

Data released Thursday showed a decline in U.S. jobless claims, and S&P Global's Flash PMI survey indicated faster-than-anticipated business activity expansion in May. This robust economic data, coupled with hawkish minutes from the Fed's most recent meeting earlier this week, has prompted traders to reduce their bets on rate cuts this year. Markets are now fully expecting a rate cut in December, with a September cut remaining uncertain, according to the CME FedWatch tool.

In Japan, inflation moderated for the second consecutive month, as investors continued to assess the Bank of Japan's capacity for further interest rate hikes this year. Core CPI, which excludes volatile fresh food prices, rose 2.2% year-on-year in April, according to data released by the Statistics Bureau on Friday. This represents a decrease from the 2.6% increase observed in the previous month.

In the United States, the Dow Jones Industrial Average (DJIA) plunged on Thursday, dropping over 600 points and retreating back to the 39,000 level as investors reacted to diminishing hopes for a September interest rate cut by the Federal Reserve.

Initial jobless claims for the week ending May 18th came in at a higher-than-expected 2.15 lakh, while Mays S&P Global Services Purchasing Managers Index (PMI) rose to a 12-month high of 50.9 on Thursday.

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