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Markets end higher for 3rd day; Nifty settles around 18600 mark
May-29-2023

Extending gains into the third consecutive session, Indian equity benchmarks ended over half percent higher on Monday amid improved global cues, following a tentative US debt ceiling deal over the weekend. Markets after giving a gap-up opening traded in positive territory throughout the session as traders took encouragement with World Economic Forum (WEF) President Borge Brende’s statement that India is expected to clock the highest growth among the world’s big economies this year and the country’s economy is witnessing the ‘famous snowball effect’ that will lead to more investments and more jobs. Some optimism also came as the commerce ministry stated that members of the 14-nation bloc IPEF have 'substantially' concluded the negotiations on the supply chains agreement, including improving logistics and connectivity; promoting investments in critical sectors and cooperation for mitigation of disruptions to ensure business continuity. Traders took a note of report that domestic rating agency Icra expects GDP growth in January-March period of 2022-23 at 4.9 per cent, a modest step-up from the 4.4 per cent recorded in preceding quarters, driven by the services sector.

Sentiments remained positive in afternoon deals, as Foreign Portfolio Investors (FPIs) pumped Rs 37,316 crore in Indian equities in May so far, primarily due to strong macroeconomic fundamentals and reasonable valuation of stocks. This is the highest investment by FPIs in the last six months. Before this, they made a net investment of Rs 36,239 crore in equities in November 2022. Further, support also came as Union minister Ashwini Vaishnaw said India is all set to become the fourth largest economy in world within two years. India is being seen as a bright spot globally and the world is placing its confidence in India, he said, urging people to continue posing their faith in the decisive leadership that will take the nation to new highs by 2047. However, key indices trimmed some of their initial gains in late afternoon deals as some concern came with Chairman of the CII Committee on EXIM Sanjay Budhia’s statement that economic recession in Germany is likely to impact India’s exports from various sectors like chemicals, machinery, apparel and electronics to the European nation. Traders also remained anxious as RBI said India’s foreign exchange reserves dropped by $6.052 billion to $593.477 billion during the week ended May 19.

On the global front, Asian markets settled mostly higher on Monday after U.S. President Joe Biden and congressional Republican McCarthy agreed on Saturday to avert an economically destabilizing default by suspending the $31.4 trillion debt ceiling until 2025. European markets were trading mostly in red lacking momentum in thin trade while optimism about the U.S. having reached a debt ceiling deal over the weekend kept Wall Street futures positive. 

Finally, the BSE Sensex surged 344.69 points or 0.55% to 62,846.38 and the CNX Nifty was up by 99.30 points or 0.54% to 18,598.65.  

The BSE Sensex touched high and low of 63,026.00 and 62,801.54, respectively. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.41%, while Small cap index was up by 0.30%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.58%, Metal up by 1.38%, Financial Services up by 0.81%, Realty up by 0.80%, Auto up by 0.63%, while Oil & Gas down by 0.94%, IT down by 0.33%, Energy down by 0.28% and TECK down by 0.21% were the losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 3.71%, Titan Company up by 2.48%, Tata Steel up by 1.88%, SBI up by 1.55% and HDFC up by 1.53%. On the flip side, HCL Technologies down by 1.09%, Power Grid Corporation down by 0.95%, Maruti Suzuki down by 0.77%, Wipro down by 0.47% and TCS down by 0.29% were the top losers.

Meanwhile, World Economic Forum (WEF) President Borge Brende has said India is expected to clock the highest growth among the world’s big economies this year and the country’s economy is witnessing the famous snowball effect that will lead to more investments and more jobs. Brende said there have been reforms that have led to less red tape, better climate for investments and also the digital revolution is really happening in India. 

Brende stated that he is very bullish and optimistic about the country’s growth trajectory but not so optimistic about global growth. He mentioned ‘The growth will lead to more investments, more jobs… it will be an exponential growth in the coming years and you will see a situation where more poverty is eradicated and more opportunities are there for young people.’

Further, he highlighted that India has more of a broad ecosystem of startups than in any other developing country and that is growing. This is something that other countries can also be inspired by, he added. India, which currently holds the G20 presidency, is one of the fastest growing key economies in the world and WEF has had close collaborations with the country for the past many years.

The CNX Nifty traded in a range of 18,641.20 and 18,581.25. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 3.37%, Titan Company up by 2.62%, Coal India up by 1.86%, Tata Steel up by 1.83% and UltraTech Cement up by 1.65%. On the flip side, ONGC down by 2.90%, Divi's Lab down by 1.14%, Power Grid Corporation down by 1.01%, HCL Technologies down by 1.00% and Maruti Suzuki down by 0.70% were the top losers.

European markets were trading mostly in red; France’s CAC fell 5.47 points or 0.07% to 7,313.71 and Germany’s DAX lost 6.09 points or 0.04% to 15,977.88, while UK’s FTSE 100 increased 56.33 points or 0.74% to 7,627.20.

Asian markets settled mostly higher on Monday on the news that the US government has come to an agreement to raise the federal government's $31.4 trillion debt ceiling. Market sentiments improved further by tracking Wall Street’s gains last Friday, despite growing expectations of further interest rate hikes by the US Federal Reserve. Chinese shares gained, despite uneven recovery in the world’s second largest economy with data showed profits at industrial profits in China fell 20.6% in the January-to-April period from the same period the previous year. Moreover, Japanese shares rallied as a weaker yen lifted exporters. Meanwhile, South Korean market was closed for Vesak Day holiday.

Asian Indices          

Last Trade            

Change in Points   

Change in %     

Shanghai Composite

3,221.45

8.95

0.28

Hang Seng

18,551.11

-195.81

-1.06

Jakarta Composite

6,681.10

-5.90

-0.09

KLSE Composite

1,404.93

1.95

0.14

Nikkei 225

31,233.54

317.23

1.02

Straits Times

3,195.22

-12.17

-0.38

KOSPI Composite

--

--

--

Taiwan Weighted

16,636.30

131.25

0.79


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