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WEEKLY MARKET REPORT
Indian market wiped out the previous week’s losses and gained more than 3 percent amid extreme volatility led by the BJP-led NDA did not receive a clear mandate as expected in exit polls.
In this week, BSE Sensex gained 2,732.05 points or 3.69 percent to close at 76,693.36, while the Nifty50 index rose 759.5 points or 3.37 percent to finish at 23,290.20. During the week, BSE Sensex hit a fresh all-time high of 76,795.31, while Nifty also inched near to its record high of 23,338.70.
Considering Broader market indices, The BSE Small-cap index advanced 3 percent while the BSE Mid-cap Index rose 3 percent, and the BSE Large-cap Index rose 3 percent.
In terms of market value, Tata Consultancy Services added the most, followed by Hindustan Unilever, Reliance Industries, and Infosys. On the other hand, Larsen & Toubro, Power Grid Corporation of India, and State Bank of India lost most of their market cap.
Among Sectoral indices, the Nifty Information Technology index rose 8.6 percent, the Nifty FMCG index rose 7 percent, the Nifty Auto index gained 6.8 percent, and the Nifty Media and Realty indices added 5 percent each. However, the Nifty PSU Bank index declined 1.4 percent.
During the week, Foreign institutional investors (FIIs) sold equities worth of Rs 13,718.42 crore, while Domestic Institutional Investors (DII) bought equities worth Rs 5,578.71 crore.
The Indian rupee erased some of the previous week’s losses and closed 8 paise higher at 83.38 on June 7 against its previous week’s close of 83.46.
ECONOMY
Rural India spent maximum of food expenditure on processed food, and beverages in 2022-23: Survey
The rural sector spends most on beverages and processed food spending 9.6 percent of its expenditure on food items, followed by 8.3 percent on milk and milk products in 2022-23, the Ministry of Statistics and Program Implementation survey released on June 7 showed.
In 2022-23, in rural India, food accounted for about 46 percent of the value of the average rural Indian household’s consumption. Among other food items, the contribution of vegetables is at 5.38 percent in rural India. The contribution of cereals and cereal substitutes in the expenditure has been about 4.91 percent, the survey on Household Consumption Expenditure: 2022-23 showed.
Urban-rural consumption expenditure differential falls to 75% in 2022-23: Survey
The average monthly per capita consumption expenditure in the rural sector has risen more sharply by 40 percent in 2022-23 as compared to 2011-12 at real prices, while the MPCE in the urban sector has risen 33 percent in the same period, Ministry of Statistics and Program Implementation survey released on June 7 showed.
The difference between the urban and rural MPCE has fallen from 84 percent in 2011-12 to 75 percent in 2022-23, the survey on Household Consumption Expenditure: 2022-23 showed.
Rural India spent the lowest 6.2% on education among non-food in 2022-23: MoSPI Survey
Rural India spent the lowest of 6.2 percent of the share of expenditure on non-food items in 2022-23 as compared to 9.5 percent spent by urban India, a Ministry of Statistics and Program Implementation survey released on June 7 showed.
Apart from education, rural India spent more on clothing and footwear, durable goods, fuel and power, medical, and entertainment as compared to urban India for the year 2022-23, the survey on Household Consumption Expenditure: 2022-23 showed.
GLOBAL MARKETS
Wall Street stocks close slightly lower; jobs data strong but rates still high
Wall Street stocks ended slightly lower on Friday in choppy trading after stronger-than-expected U.S. jobs data pointed to a robust economy but prompted worries the Federal Reserve may wait longer to cut interest rates than many investors had hoped.
The Dow Jones Industrial Average fell 87.18 points, or 0.22%, to 38,798.99, the S&P 500 lost 5.97 points, or 0.11%, to 5,346.99 and the Nasdaq Composite lost 39.99 points, or 0.23%, to 17,133.13.
Asia shares set for weekly gain on rate-cut rally
Asian stocks are set to snap a two-week losing streak on Friday after major central banks kick-started their rate easing cycle this week, adding to expectations the U.S. Federal Reserve could soon follow suit.
MSCI’s broadest index of Asia-Pacific shares outside Japan tracked world stocks higher and rose 0.3% in early Asia trade. The index was headed for a weekly gain of nearly 3%. Hong Kong’s Hang Seng Index similarly ticked up 0.14%, while Chinese blue chips edged 0.23% higher. Japan’s Nikkei fell 0.16%.
Oil prices climb as OPEC+ reassures markets
Oil prices rose on Friday, continuing to climb after OPEC+ members Saudi Arabia and Russia indicated readiness to pause or reverse output agreements and as an interest rate cut in Europe raised the prospect of a similar U.S. move.
Brent crude futures rose 16 cents or 0.2% to $80.03 per barrel and U.S. West Texas Intermediate crude futures rose 16 cents or 0.2% to $75.71 as at 0007 GMT.
STOCKS IN NEWS
Vedanta: Shares of mining major Vedanta have rallied more than four percent over the past two sessions after a majority of its lenders approved its demerger plans. “I am happy to inform you all that we have got 52 percent plus the additional percentage that we need to reach 75 percent. We have crossed that threshold as well. Most of the lenders have approved it,” said a senior Vedanta official in a bondholder conference call.
Paytm: Shares of the fintech firm zoomed 10 percent after the circuit filter for the stock was revised upwards to 10 percent from 5 percent earlier. The stock also rallied as the company said it is seeing early signs of recovery and strong stabilization for its UPI business.
Garden Reach Shipbuilders & Engineers: Shares closed 3.61 percent higher after the company emerged as the lowest bidder for a Defence Research and Development Organisation (DRDO) contract. The contract, worth around Rs 500 crore encompasses building a research vessel for the DRDO. However, GRSE is yet to bag the order as the contract is currently under negotiation and has not yet been signed.
InterGlobe Aviation: Kotak Institutional Equities raised its price target on IndiGo parent InterGlobe Aviation while foreseeing a 33 percent upside from current levels. Kotak increased its target price on the IndiGo operator to Rs 5,700 while maintaining its buy rating. The brokerage said there is a chance most of Indigo’s competitors would see another year of stiff losses in FY25.
PB Fintech: Shares of Policybazaar parent PB Fintech fell over 2 percent on June 7 after market regulator Sebi issued a show cause notice to company chairperson and CEO Yashish Dahiya over a Dubai investment made in 2022. The Show Cause Notice relates to a $2 million investment in a Dubai-based marketing company – YKNP Marketing Management – through PB Fintech’s arm PB Fintech FZ-LLC, Dubai, the company informed in a regulatory filing on June 6.