Post Session: Quick Review

After making cautious start, Indian equity markets traded higher till the end of the session with Nifty and Sensex settling above the psychological 23,250 and 76,600 levels, respectively. Sensex hit fresh high level during the day. RBI’s monetary policy decision cheered the markets. There were no losing sectoral indices on the BSE. The broader indices, the BSE Mid cap index and Small cap index ended with healthy gains. 

Markets made cautious start tracking weakness in global markets with a mixed close on Wall Street overnight as well as mostly negative cues from Asian counterparts. Besides, traders were concerned as foreign institutional investors (FIIs) continued their selling streak, offloading shares worth Rs 6,867.72 crore. However, markets managed to gain traction and extended their northward journey as the Reserve Bank of India’s (RBI’s) Monetary Policy Committee (MPC) decided to Keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50 per cent for the eighth consecutive time. On the economic growth front, the RBI has raised projection of real gross domestic product (GDP) for the FY25 to 7.2%, from 7% estimated previously. The GDP growth in Q1FY25 is projected to be at 7.3%, 7.2% in Q2FY25, 7.3% in Q3FY25 and 7.2% in Q4FY25. The buying activity continued in afternoon session, as sentiments remained optimistic, after the Reserve Bank Governor Shaktikanta Das revealed that India's foreign exchange reserves have soared to an unprecedented $651.5 billion as of May 31. The overall reserves have risen by $4.83 billion since the last reported $646.673 billion on May 24. In late afternoon session, markets touched high levels, as traders continued to buy fundamentally strong stocks. 

On the global front, European markets were trading lower after the European Central Bank eased borrowing costs as was widely expected, with the focus now shifting to the U.S. jobs data to gauge the Federal Reserve's interest rate path. Asian markets ended mostly lower ahead of US jobs data that could play a key role in the Federal Reserve's plans for cutting interest rates, with the bank's next policy decision looming next week. Back home, the commerce ministry has said India offers huge investment opportunities worth over $500 billion, particularly in clean energy value chain including renewables, green hydrogen and EV, by 2030.

The BSE Sensex ended at 76,693.36, up by 1618.85 points or 2.16% after trading in a range of 74,941.88 and 76,795.31. All 30 stocks were advancing on the index.(Provisional)

The broader indices ended in green; the BSE Mid cap index gained 1.28%, while Small cap index was up by 2.18%.(Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 3.78%, IT up by 3.38%, TECK up by 3.33%, Auto up by 2.53% and Consumer Durables was up by 2.22%, while there were no losing sectoral indices on the BSE. (Provisional)

The top gainers on the Sensex were Mahindra & Mahindra up by 5.38%, Wipro up by 5.09%, Tech Mahindra up by 4.50%, Infosys up by 4.13% and Tata Steel up by 4.04%, while there were no losers on the Sensex. (Provisional)

Meanwhile, in an encouraging move, the commerce ministry has said India offers huge investment opportunities worth over $500 billion, particularly in clean energy value chain including renewables, green hydrogen and EV, by 2030. India attended the two-day meet of the Indo-Pacific Economic Framework for Prosperity (IPEF) Clean Economy Investor Forum. The meeting brought together the region's top investors, clean economy companies, and start-ups to mobilise investments into sustainable infrastructure, climate technology, and renewable energy projects. 

The 14-member IPEF bloc was launched jointly by the US and other partner countries of the Indo-Pacific region on May 23, 2022, in Tokyo. Together, they account for 40 per cent of the world's economic output and 28 per cent of trade. The framework is structured around four pillars relating to trade, supply chains, clean economy and fair economy. India has joined all the pillars except the trade. Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, the US, and Vietnam are members of the bloc.

Commerce Secretary Sunil Barthwal has acknowledged the forum as a unique platform that brought global investors, policy makers, and academia under one roof, which would be instrumental in advancing sustainable infrastructure in the Indo-Pacific Region. The secretary underlined the huge investment opportunities that 'India offers of more than $500 billion, particularly in the clean energy value chain including renewables, green hydrogen and EV and its infrastructure transition, by 2030'. He also highlighted key reforms around ease of doing business in India to improve business environment over the last decade.

The ministry said in the sustainable infrastructure track, after the screening, ‘four companies (ReNew Power, Avaada Energy, Indusbridge Capital Advisors LLP. Founder, SEIP, and Powerica) from India were shortlisted for pitching their concepts on energy transition, transport and logistics, and waste management/waste to energy to global investors’. Similarly, in the climate tech track, 10 Indian startups and companies (BluSmart, Recykal, LOHUM, Sea6 Energy, EVage Ventures, Kabira Mobility, Batx Energies, Newtrace and Alt Mobility, igrenEnergi, Inc.) were selected to pitch their innovative ideas, technologies and solutions that contribute to mitigating or adapting to climate change. Further, the ministry said that the forum resulted in $23 billion investment opportunities for sustainable infrastructure projects in the Indo-Pacific.

The CNX Nifty ended at 23,290.15, up by 468.75 points or 2.05% after trading in a range of 22,789.05 and 23,320.20. There were 48 stocks advancing against 2 stocks declining on the index. (Provisional)

The top gainers on Nifty were Mahindra & Mahindra up by 5.84%, Wipro up by 5.11%, Tech Mahindra up by 4.57%, Infosys up by 4.17% and Ultratech Cement up by 4.06%. On the flip side, SBI Life down by 1.18% and Tata Consumer down by 0.37% were the only losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 52.25 points or 0.63% to 8,233.09, France’s CAC fell 55.44 points or 0.69% to 7,984.68 and Germany’s DAX was down by 143.29 points or 0.77% to 18,509.38.

Asian markets settled mostly down on Friday ahead of key US jobs data due later in the day that could influence the timing and pace of Fed rate cuts. Japanese shares declined marginally with speculation that the Bank of Japan might drop clues on bond tapering plan when authorities meet next week. However, Chinese shares gained marginally after the release of mixed trade data. China's exports posted an annual growth of 7.6% following a 1.5% rise in April, while China's total imports grew 1.8% on-year in May down from the 8.4% surge recorded in April.