Closing Bell: Sensex Gained 2,303 Points, Nifty At 22,620; Banking Stocks Up

Sensex ended the day with the gain of 2,303 points to 74,382 and Nifty climbed 736 points to 22,620 on Wednesday, June 5, 2024. Nifty Bank rallied 2,126 points to 49,055 and Nifty Midcap zoomed 2,116 points to 51,267.

Banking, Automobile, chemical sectors were among the top gainers whereas, manufacturing sector was among the top losers.

On Wednesday, June 5, shares of Vodafone Idea Ltd. (VIL) are witnessing an increase of up to 12%. Despite this surge, the stock has experienced a decline of as much as 15% since the beginning of the year. Notably, in Tuesday's session alone, the telecom stock had declined by 17%. However, over the last month, VIL shares have seen a rise of 14%. Impressively, the stock has doubled in value over the course of the past 12 months.

After One of the biggest selloff, Indian stock market started Wednesday's trade on a positive note. Sensex climbed to cross 73,000 mark to an intraday high of 73,027.88, while Nifty 50 even touched above 22,000 levels to 22,131.60. However, the market is volatile after the election verdict with BJP wins lower than street expectations.

In the early trade, broad-based buying was seen in FMCG, IT, metals, and oil & gas stocks. HUL extend its rally, followed by Nestle, Asian Paints.

India's volatility index is at 22.37, down by 16.4%.

As per the latest update, of the total 543 seats, BJP's NDA is leading with 294 seats and Congress-led I.N.D.I.An alliance bags 233 seats. Others won 16 seats. As of now, NDA lost 59 seats from the previous election, and the INDIA bloc recorded 115 seat surges.

Apart from this, the six-member MPC led by RBI governor Shaktikanta Das will commence a 3-day monetary policy meeting from June 5 onward, and the outcomes will be declared on June 6. This will also contribute in market sentiment. Majority are expecting RBI to keep repo rate unchanged at 6.5%.

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Jun 05, 2024, 3:41 pm IST

Post-Market Quote By Mr. Aditya Gaggar Director Of Progressive Shares

After the initial fall, V-shaped recovery was seen in the opening trade while in the latter part, sharp uptick was seen across the board, pushing the Index higher to end the day at 22,620.35 with gains of 735.85 points. All the sectors ended the session in green where Metal and Auto counters contributed the most to the Index rally. With gains of over 3.5%, Mid and Smallcaps trimmed half of its previous session losses and outperformed the Frontline Index. With a hidden bullish divergence in RSI, the Index has formed a big green candle known as the Inside Bar candle, representing a continuation of an uptrend. A level of 22,240 will be considered immediate support while 23,080-23,130 will be a crucial resistance zone.

Jun 05, 2024, 3:27 pm IST

"GPT Infraprojects Shares Surge Nearly 5% Following Acquisition of Rs.547 Crore Order from RVNL"

Shares of GPT Infraprojects saw a nearly 5% increase in morning trade on Wednesday, June 5, following the announcement that the company is set to secure a substantial order worth Rs.547 crore from Rail Vikas Nigam Limited (RVNL). As per a stock exchange filing made by GPT Infraprojects on June 4, the company will undertake the construction of various infrastructure components. These include the viaduct portion of the elevated corridor, rail over bridge, exit/entry ramps, small vehicular underpass, light vehicular underpass, and pedestrian underpass as part of the construction of the Six Lane Elevated Kona Expressway in West Bengal.

Jun 05, 2024, 2:38 pm IST

HUL SharesUp 14% In Three Sessions

On Wednesday, June 5, shares of Hindustan Unilever Ltd. (HUL) surged by as much as 9%. This notable increase marked the company's most significant single-day gain since April 2020. The surge came on the heels of a favorable move by foreign brokerage firm Jefferies, which upgraded HUL's rating to 'Buy'. Jefferies also revised its target price for HUL to Rs.2,950 from the previous Rs.2,530. This upward adjustment in target price suggests a potential upside of another 18% from Tuesday's closing levels for HUL, according to Jefferies' analysis. The upgrade was attributed to a surprising outcome in the Lok Sabha 2024 election, underscoring investor optimism in the company's future prospects.

Jun 05, 2024, 2:14 pm IST

Hero MotoCorp Shares Surge 8% to All-Time High

Shares of Hero MotoCorp Ltd., the renowned two-wheeler manufacturer, surged by a remarkable 8.7% on Wednesday, reaching an all-time high of Rs.5,775. This surge further solidifies its position as one of the top-performing stocks in 2024, with gains extending to 38%. Notably, it ranks as the third-best performing stock on the Nifty 50 index, following Mahindra & Mahindra (up 58%) and Bajaj Auto (up 40%). The positive momentum isn't limited to Hero MotoCorp alone; all constituents of the Nifty Auto index are witnessing gains, aligning with the broader market rebound. It's noteworthy that the Auto index has successfully recovered from the losses incurred during Tuesday's trading session, bouncing back from a 3.3% dip.

Jun 05, 2024, 1:51 pm IST

Market Outlook By Aditya Gaggar, Director of Progressive Shares

Hammering across the board caused the biggest drop in the Indian markets since March 2020 and Nifty50 ended the session at 21,885. On the daily chart, the Index has formed a massive red candle which suggests extreme pessimism in the markets and the impact of counting is likely to persist today as well. A moderate opening is expected as per GIFT Nifty indication with immediate support of 21,600 while a level of 22,500 will be a strong hurdle. After a steep fall in yesterday's trade, the short-term trend of all the sectors has turned bearish. If the market corrects further then long-term investors can deploy 5-10%.

Jun 05, 2024, 1:27 pm IST

Market Outlook Today By Hemant Shah -Fund Manager at Seven Islands PMS

Unexpected low numbers for the NDA and indices at all-time high yesterday and a sharp correction of 7% from the high is natural outcome on the back of the election results. NDA will form govt but will not be considered as a strong government anymore, many policies will be continued but the speed of reforms might get halted. The indices can see further correction in the days to come. We saw Extremely high valuations in many sectors across the board but especially in Public sector companies and many companies in the solar space on the expectation of further push of reforms. The stocks will settle at the lower end of valuations now. This is a big change we expect. Investors should wait for some time and await More clarity and let the dust settle down. Let some clarity emerge on the decision-making action of the NEW GOVT ( old govt with new numbers) The next thing to watch out for is the Budget in July.

Jun 05, 2024, 1:01 pm IST

Market outlook post the Election results from Rupen Rajguru, Head Equity Investments and Strategy, Julius Baer India

Whilst the exit polls indicated a comeback of NDA (with a thumping victory) as a done deal, the actual election results have turned out to be a damp squib for the NDA. As a knee jerk reaction, the equity markets were down sharply on results day as BJP did not get an absolute majority of its own (which was widely expected) and it will have to rely on coalition partner support to form the government. As all the allies were established as pre-poll ones and there were seat-sharing arrangements, they are likely to stick to NDA and go ahead with the formation of the government. Over the next few days, there could be a lot of action around NDA staking the claim to form the government, and thereafter a lot of noise could be around key portfolio/ministry allocation which will keep the equity markets volatile. For the past two terms, the BJP had a clear single party majority, which helped it to implement various reforms with a clear focus on economic growth and infrastructure development. While the focus on the existing reforms related to domestic manufacturing, infrastructure development, etc. is likely to continue, there could be an incremental shift of focus to support domestic consumption, especially rural consumption, which has continued to lag quite a bit over the past couple of years and has probably emerged as a sore point for the voting community. Additionally with the coalition government and possible shifts in equations in the political alliances, the government will be on some sort of a backfoot in terms of bold policy measures (Land/Labour /Judicial reforms, Uniform Civil Code, etc.). In the near term defensives (FMCG, IT and Healthcare) will outperform capex oriented sectors. Additionally, some of the sectors with strong narratives - PSUs, Defense, Railways will take a breather and can potentially see some de-rating from the current near all-time high valuations. Over the medium to longer term, the structural story remains intact: (EARNINGS + CAPEX + CREDIT GROWTH) and we continue to believe that India has entered a phase wherein for the next few years: Earnings growth > Nominal GDP. Hence, we continue to remain constructive on the long term potential of the Indian market and maintain our overweight stance on Financials, Autos, Real Estate, and select Industrials/Manufacturing companies.

Jun 05, 2024, 12:38 pm IST

Bank Nifty Option Outlook For The Week By Axis Securities

Bank Nifty has seen an increase in Open Interest of 13.23% with a decrease in price of -3.92% indicating Short Build Up. Nifty has seen an increase in Open Interest of 56.20% with a decrease in price of -3.67% indicating Short Build Up. Option data indicates a probable trading range of Bank Nifty for the day between 45,500 to 48,500 & that for Nifty current weekly expiry at 21,200 to 22,500. BANK NIFTY Strategy: Put Spread View: Moderately Bearish. Rationale: - Traders could initiate this spread strategy to make modest returns with limited risk and reward. The spread suggested consists of buying one lot of 47,000 strike PUT Option and simultaneously selling one lot of 46,500 strike PUT Option.

Jun 05, 2024, 12:06 pm IST

Lupin Finalizes Acquisition Of Sanofi's AaraneTM & NalcromTM Brands

Lupin's European subsidiary, Lupin Atlantis Holdings SA, has successfully completed the acquisition of two renowned brands from Sanofi: AaraneTM in Germany and NalcromTM in Canada and the Netherlands. This deal includes the associated trademark rights for both brands.

Jun 05, 2024, 11:41 am IST

Garden Reach Bags Contract With BIWTA For Dredger Procurement

Garden Reach has entered into a contract with the Bangladesh Inland Water Transport Authority (BIWTA) to supply one trailing suction hopper dredger, featuring a hopper capacity of 1000 m3, along with spare parts.

Jun 05, 2024, 11:21 am IST

SBI Board Set To Discuss Billion Fundraising Plan

The State Bank of India (SBI) announced that its board of directors will convene on June 11 to deliberate on a long-term fundraising strategy. The plan involves raising up to billion in one or multiple tranches through a public offering or private placement of senior unsecured notes, denominated in US Dollars or another major foreign currency, within the fiscal year 2024-25.

Jun 05, 2024, 10:40 am IST

ixigo Sets IPO Price Band at Rs 88-93/Share

Le Travenues Technology, the parent company of online travel aggregator ixigo, has announced a price band of Rs 88 to Rs 93 per share for its upcoming initial public offering (IPO), which will open for subscription on June 10. The anchor bidding process will commence on June 7, with the IPO closing on June 12. The IPO includes a fresh issue of Rs 120 crore and an offer for sale of up to 66.68 million shares, amounting to Rs 620 crore at the upper price band. This brings the total issue size to Rs 720 crore.

Jun 05, 2024, 9:44 am IST

Strategic Approach To Market

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services: The market will take some time to absorb the unexpected election results. Stability will return to the market soon but volatility will continue till there is clarity on the cabinet and the key portfolios. A sharp rebound in the market is unlikely in the near term but sectoral preferences might change. Sectors like FMCG, healthcare and IT will find increasing preferences and the momentum plays will slowdown. One positive of the sharp market correction is that the excessive valuations have moderated a bit and this will facilitate institutional buying once clarity emerges on the formation and composition of the cabinet. Investors can start nibbling at high quality largecaps in IT, financials, autos and capital goods."

Jun 05, 2024, 9:37 am IST

Sensex In Gains

Sensex traded on a higher note in the early trade of Wednesday. The benchmark opened at 73,027.88 which became its intraday high, while currently the index is at 72,431.71 up by 0.5%.

Jun 05, 2024, 9:37 am IST

Nifty 50 Holds 22K

The 50-scrip index opened on a bullish trend at 22,128.35, and even touched an intraday high of 22,131.60. Currently, the benchmark maintains 22,000 levels.

Jun 05, 2024, 9:30 am IST

Top 5 Gainers and Losers Today

Stock Market Live Updates

Jun 05, 2024, 9:13 am IST

Trade Guide Today

Prashanth Tapse, Senior VP (Research), Mehta Equities: In a dramatic downturn, Nifty 50 recorded its biggest single-day plunge in over four years, falling 6%, as bears took control of Dalal Street following the BJP's failure to secure a clear majority in the elections. The Narendra Modi-led BJP leads with 293 seats, but concerns over the new government's ability to implement bold policies weighed heavily on the market. GIFT Nifty remains subdued despite Modi's victory speech, with technical indicators pointing to a trading range of 21000-22500. Meanwhile, WTI crude oil futures dropped to a four-month low, offering some relief. Eyes are now on the RBI's three-day MPC meeting. Preferred trades: Nifty to sell at 22200-22500 with targets at 21500/21000, and Bank Nifty to sell at 47500-47700 with targets at 46077/45701. Bearish on Dixon Technologies, CUB, and Exide.

Jun 05, 2024, 9:08 am IST

Rupee Opens Higher

Indian Rupee opens at 83.46/$ versus Tuesday’s close of 83.53 against US Dollar.

Jun 05, 2024, 8:36 am IST

What Should Investors Do After Election Results?

Amisha Vora, Chairperson & MD, Prabhudas Lilladher: The outcome of the Lok Sabha Elections 2024 has caused a major upset in the markets, leading to nervousness. There has been a significant shift in the political dynamics in Uttar Pradesh, with the Samajwadi Party gaining leads, reflecting the sentiments of minorities. Initially, markets were expecting the BJP to secure 400 seats. However, after initial leads, the expectation came down to 272 seats. Now, markets are hoping for the BJP to form a government with the help of the NDA alliance. As a result, markets will likely shed the 'Modi premium,' causing a correction in PSU and infra stocks. Once this turbulence stabilizes, attention will shift to the core macro factors affecting India. Investors should brace for volatility in the short term, but the underlying fundamentals of India's growth story remain strong.

Jun 05, 2024, 8:31 am IST

RBI Policy In Focus

MPC led by RBI governor Shaktikanta Das will commence a 3-day monetary policy meeting from June 5 onward, and the outcomes will be declared on June 6. This will also contribute in market sentiment. Majority are expecting RBI to keep repo rate unchanged at 6.5%.

Jun 05, 2024, 8:29 am IST

Market On Previous Day

On June 4, 2024, Sensex nosedived by 6,234.35 points or 8.9% to hit an intraday low of 70,234.43. Meanwhile, Nifty 50 shed up to 8.52% or 1,982.45 points to hit an intraday low of 21,281.45. Sensex ended at 72,079.05, down by 4389.73 points or 5.74%, and Nifty ended at 21,884.50 lower by 1,379.40 points or 5.93%. As per the latest update, of the total 543 seats, BJP's NDA is leading with 294 seats and Congress-led I.N.D.I.An alliance bags 233 seats. Others won 16 seats. As of now, NDA lost 59 seats from the previous election, and the INDIA bloc recorded 115 seat surges.