Market at day's high; Sensex soars 1,623 pts; auto shares rally

The key equity indices extended gains and hit the day's in mid-morning trade. The Nifty traded above the 22,400 level. Auto shares advanced after declining in the past trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex was surged 1,623.46 points or 2.26% to 73,708.60. The Nifty 50 index jumped 532.20 points or 2.43% to 22,416.70.

In the broader market, The S&P BSE Mid-Cap index gained 3.22% and the S&P BSE Small-Cap index rallied 3.22%.

The market breadth was positive. On the BSE, 2,138 shares rose and 1,462 shares fell. A total of 131 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slumped 28.61% to 19.10.

Economy:

The seasonally adjusted HSBC India Services Business Activity Index remained comfortably above the neutral mark of 50.0 in May, highlighting a sharp upturn in output. That said, the headline figure fell from 60.8 in April to 60.2, its lowest mark since last December.

Growth was reportedly supported by rising sales, productivity gains and demand strength. The upturn was somewhat hampered by competitive and price pressures.

May data showed that robust increases in new business intakes continued to underpin output growth across India's service economy. Rates of expansion eased to the slowest in the calendar year-to-date, however, amid fierce competition, price pressures and a severe heatwave. Both input costs and output charges rose to greater extents.

Indian private sector output rose sharply halfway through the first quarter, despite another loss of growth momentum. The HSBC India Composite Output Index slipped from 61.5 in April to 60.5 in May, highlighting the slowest rate of expansion since last December. There were softer increases in both factory production and services activity.

Lok Sabha Elections:

The Lok Sabha elections 2024 concluded with the Election Commission of India declaring all results. Prime Minister Narendra Modi is set to form the government for a third consecutive term. The BJP emerged as the largest party, winning 240 out of 543 seats, while the Congress secured 99 seats. The BJP-led National Democratic Alliance (NDA) won 293 seats, and the Opposition INDIA alliance obtained 232 seats. Despite significant losses in three Hindi heartland states, the NDA secured a majority in the Lok Sabha after a fiercely contested election.

IPO Update:

The initial public offer (IPO) of Kronox Lab Sciences received 21,93,24,050 bids for shares as against 66,99,000 shares on offer, according to stock exchange data at 11:25 IST on Wednesday (05 June 2024). The issue was subscribed 32.74 times.

The issue opened for bidding on Monday (03 June 2024) and it will close on Wednesday (05 June 2024). The price band of the IPO is fixed between Rs 129 to Rs 136 per share. An investor can bid for a minimum of 110 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Auto index jumped 3.94% to 24,107.10. The index dropped 3.33% in the past trading session.

Hero MotoCorp (up 8.65%), Exide Industries (up 6.73%), TVS Motor Company (up 6.36%), Mahindra & Mahindra (up 5.99%), Balkrishna Industries (up 4.47%), Bajaj Auto (up 4.41%), Bosch (up 3.77%), Samvardhana Motherson International (up 3.48%), Apollo Tyres (up 3.38%) and MRF (up 3.28%) advanced.

Stocks in Spotlight :

GPT Infraprojects rallied 3.18% after the company announced that it has secured an order worth Rs 547 crore from Rail Vikas Nigam Limited (RVNL), which has to be executed on an engineering, procurement, and construction (EPC) mode.

Angel One advanced 3.80% after the companys client base jumped 63.3% to 23.83 million in May 2024 as against 14.59 million recorded in May 2023.

Global Markets:

Asian stocks traded mixed on Wednesday. Oil slipped for sixth consecutive day. Brent crude futures fell 4 cents, or 0.5%, to $77.48 a barrel.

US stocks rose slightly on Tuesday after data showed a weaker-than-expected labor market, which investors believe will lead the Federal Reserve to cut interest rates. The Dow Jones Industrial Average rose 0.36%, the S&P 500 gained 0.15%, and the Nasdaq Composite gained 0.17%.

According to the Bureau of Labor Statistics, US job openings decreased by 296,000, reaching 8.059 million on the last day of April. This marks the lowest level since February 2021 and signifies a decrease in labor market tightness.

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