Market Highlights

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Get the latest Indian stock / share market highlights, BSE/NSE stock news, business research reports & details - updated daily by Money Times.

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June 02, 2023

• Sky Gold Ltd. in focus as it's into B2B market & it's major market is South India
• Research Dive has published a new report on the India B2B gold jewellery market. According to the report, the market is projected to surpass $29,415.2 million and grow at a CAGR of 3.4% in the estimated period, 2022–2031. The South market is projected to observe significant growth during the estimated period.
• The key factor boosting the growth of the India B2B gold jewellery market is a significant rise in the need for India B2B gold jewellery due to an increase in gift-exchanging during festivals and a shift in consumer preferences towards holiday gifts for friends and family. Furthermore, the increasing demand for branded jewels, as well as the security of the authenticity and purity of the premium stones and metals used in jewellery, are estimated to unlock lucrative opportunities for market growth in the forecast period.
• *May Auto Sales Estimates YoY (To be announced on 01st June 2023):*
• *Ashok Leyland:* 14110 units versus 13273 units ( *Up 6.0%* )
• *Tata Motors:* 72600 units versus 76210 units ( *Down 4.7%* )
• *M&M Total:* 66500 units versus 53726 units ( *Up 21.0%* )
• *M&M Tractor:* 32600 units versus 34722 units ( *Down 6.0%* )
• *Maruti:* 1.65 lakh units versus 1.61 lakh units ( *Up 2.5%* )
• *Hero Motocorp:* 5.20 lakh units versus 4.90 lakh units ( *Up 7.0%* )
• *TVS Motors:* 3.2 lakh units versus 3.0 lakh units ( *Up 7.0%* )
• *Bajaj Auto:* 3.5 lakh units versus 2.75 lakh units ( *Up 27.0%* )
• *Eicher Motors RE:* 75900 units versus 63643 units ( *Up 19.0%* )
• *India Manufacturing PMI:*
• Current: 58.7
• Expected: 57.0
• Previous: 57.2
• (Data seen better than market estimates)
• Some of the main moves in markets:
• Stocks
• The S&P 500 rose 1.1% as of 2:54 p.m. New York time
• The Nasdaq 100 rose 1.5%
• The Dow Jones Industrial Average rose 0.6%
• The MSCI World index rose 1.2%
• Currencies
• The Bloomberg Dollar Spot Index fell 0.6%
• The euro rose 0.7% to $1.0764
• The British pound rose 0.7% to $1.2529
• The Japanese yen rose 0.4% to 138.80 per dollar
• Cryptocurrencies
• Bitcoin fell 0.5% to $26,980.47
• Ether rose 0.3% to $1,871.68
• Bonds
• The yield on 10-year Treasuries declined four basis points to 3.60%
• Germany’s 10-year yield declined three basis points to 2.25%
• Britain’s 10-year yield declined seven basis points to 4.12%
• Commodities
• West Texas Intermediate crude rose 3.1% to $70.17 a barrel
• Gold futures rose 0.6% to $1,994.70 an ounce 
• *WHAT HAPPENED OVERNIGHT*
• - SPX +0.99%, Nasdaq +1.28%
• - UST 10y yield -4 bps to 3.60%
• - Dollar Index back below a support area (103.80-104)
• - Other catalysts: EU inflation miss, weak US ISM mfg & Fedspeak in favoring a June pause
• - Oil +2.1% to $74.22
• - Today: US jobs data
• *Very Good Morning!!!*
• *US Markets in Detail...*
• *SGXNifty:18,634: +71: +0.38%*
• *Last Heard:*
• IKIO : last heard: Rs. 68/-
• Infiollion Research: Last heard : Rs. 72/-
• Hemang Surgical : last Heard: Rs. 51/-
• Crayons: Last Heard: Rs: 42/-
• Vasa: Last Heard: Rs. 54/-
• Today
• *Coal India OFS*
• Discovery Price for HNI’s & Inst.: Rs. 226.05
• *Listing of Vasa Denticity Ltd.*
• IPO Px: Rs. 128/-..Market lot: 1000
• Last Heard: Rs. 54/-
• *Listing of CRAYONS*
• Ipo Px: Rs. 65/- Market lot : 2000
• Last Heard: Rs: 42
• *Listing of New Securities Salzer Electronics Ltd*
• 200000 equity shares of Rs. 10./- each issued at a premium of Rs.268.50/- to Promoters on a preferential basis pursuant to conversion of warrants.
• *Listing of new securities of V-Guard Industries Limited*
• 10,83,008 Equity Shares of Re. 1/- each issued pursuant to the Scheme of Amalgamation between Simon Electric Private Limited and V-Guard Industries Limited and their respective Shareholders and Creditors
• *Listing of new securities of CAMLIN FINE SCIENCES LTD*
• 10258986 Equity shares of Re. 1/- each issued at a premium of Rs. 104/- pursuant to conversion of Foreign Currency Convertible Bonds (FCCBs) of the Company.
• *Provisional Cash Rs. In Crs. (1st June)*
• FIIs -71 (8,751 – 8,822)
• DIIs +489 (5,715 – 5,226)
• Sensex: 62,429 (-194) (-0.31%)
• Nifty: 18,488 (-47) (-0.25%)
• BankNifty: 43,790 (-338) (-0.77%)
• NiftyIT: 29,446: +127: +0.43%
• MIDCAP: 33,812: +51: +0.15%
• Dow: 33,062: +153: +0.47%
• S&P: 4,221: +41: +0.99%
• Nas: 13,101: +166: +1.28%
• Brazil: 110,565: +2,229: +2.06%
• Ftse: 7,490: +44: +0.59%
• Dax: 15,854: +190: +1.21%
• Cac: 7,137: +39: +0.55%
• MOEX: 2,722: +4: +0.15%
• WTI Oil: $70.1: +2.95%
• Brnt: $74.35: +2.41%
• Natural Gas: 2.16 (-4.77%)
• Gold: $1,996: +13: +0.68%
• Silver: $23.99: +1.70%
• Copper: $371: +7: +2.03%
• Cotton: $81.58: +2.66%
• Copper (LME): $8,070 (-33) (-0.41%)
• Alluminum (LME): $2,287: +35: +1.55%
• Zinc (LM): $2,230 (-58) (-2.54%)
• Tin (LME): $25,701 (-166) (-0.64%)
• Eur-$: 1.0762: +0.7%
• GBP-$: 1.253: +0.7%
• Jpy-$: 138.82: +0.4%
• Re: 82.4138 (-0.38%)
• USD-RUB: 81.0001 (-0.33%)
• US10yr: 3.60% (-1.31%)
• GIND10YR: 6.979 (-0.14%)
• $ Index: 103.551 (-0.74%)
• US Vix: 17.94: +2.75%
• India Vix: 15.65 (-12.76%)
• BalticDry: 977 (-146) (-13%)
• *ADR/GDR*
• Cogni (-0.48%)
• Infy: +0.53%
• Wit: +1.02%
• IciciBk: +0.31%
• HdfcBk: +0.56%
• DrRdy: +1.14%
• TatSt: +3.25%
• Axis: +1.81%
• SBI: +1.44%
• RIGD: +0.68%
• INDA: +1.02% (IShares MSCI INDIA ETF)
• INDY: +0.91% (IShares MSCI INDIA 50 ETF)
• EPI: +0.91% (Wisdom Tree India Earning)
• PIN: +1.42% (Invesco India Etf)
• Stock futures inched higher in overnight trading as traders looked ahead to Friday’s May jobs report.
• Futures tied to the Dow Jones Industrial Average gained 33 points, or 0.1%, while S&P 500 futures added 0.09%. Nasdaq-100 futures rose 0.14%.
• Lululemon shares popped 13% after the bell on strong results and a guidance boost, while MongoDB surged 22% on a blowout forecast.
• *S&P 500, Nasdaq end at 9-month highs on economic data, hopes for Fed rate hike pause and progress on raising the debt ceiling. Senate’s plans to vote on debt-ceiling bill encourage markets*
• *The S&P 500 index and Nasdaq Composite closed at their highest levels in more than nine months on Thursday, with Congress making progress on raising the debt ceiling, support coming from U.S. economic data and some Federal Reserve officials who suggested there may be no need to raise interest rates again in June.*
• After a brief respite in the colossal advance of big tech fueled by the artificial-intelligence frenzy, the cohort is back in full force. Nvidia Corp. climbed over 5%, leading gains in the Nasdaq 100. Aside from the obsession for anything AI-related that drove megacaps up 17% in May, the industry also got a boost amid a slide in bond yields and better-than-estimated sales at Dell Technologies Inc.
• One can rightly ask how many more ‘Mays’ we can have, where US big tech is almost the only place to find outsized positive equity returns anywhere in the world,” said Nicholas Colas, co-founder of DataTrek Research. “The old Keynesian saying that goes, ‘markets can remain irrational longer than you can stay solvent’ feels especially relevant in the current investment environment.”
• The S&P 500 rose 1% on Thursday, reclaiming its 4,200 mark. A contrarian indicator from Bank of America Corp. that tracks Wall Street strategists’ average recommended allocation to stocks is the closest it has been to notching a “buy” signal in over six years.
• *The number of Americans filing new claims for unemployment benefits rose modestly last week, while private payrolls increased more than expected in May, pointing to a still tight labor market that could push the Fed to keep rates elevated.*
• *Focus now shifts to the Labor Department's closely watched unemployment report for May, due on Friday. The data will help determine whether the Fed sticks with its aggressive rate hikes.*
• *Wage inflation is slowing, as reported by ADP, while a Labor Department report said the price of labor per single unit of output rebounded at a 4.2% rate in the first quarter - a downward revision from the 6.3% growth pace estimated in May.*
• *Jobs, Fedspeak*
• Aside from the AI theme, traders also geared up for the monthly jobs report on Friday, with forecasters projecting a moderation in the pace of hiring that could potentially allow the Fed to pause its tightening policy in June.
• *Fed Bank of Philadelphia President Patrick Harker said “we should at least skip this meeting in terms of an increase. In an essay Thursday, his St. Louis counterpart James Bullard, said he believes interest rates are at the low end of what’s likely to be sufficiently restrictive to bring down inflation.*
• *After the closing bell, Broadcom Inc., one of the world’s biggest chipmakers, said that demand for gear that powers AI is helping fuel sales, but not enough to offset a broader post-pandemic slowdown.*
• *Meantime, the Treasury is considering postponing its regular three- and six-month bill auctions “tentatively” scheduled for next Monday if constraints around the statutory debt limit remain.*
• *Senators scrambled Thursday to agree on a plan for swift consideration of the debt-limit deal forged by President Joe Biden and House Speaker Kevin McCarthy ahead of a June 5 deadline to avert a destabilizing default.*
• *Futures trading showed a 76.2% probability that the Fed will desist from hiking rates at its June 13-14 policy meeting, according to CME Group's FedWatch Tool.*
• U.S. stocks wrapped up a historic month for markets on Wednesday as the Nasdaq Composite outperformed the Dow industrials by the widest margin since October 2001.
• *What drove markets*
• U.S. stock indexes finished higher on Thursday, helped by a batch of economic reports on construction and manufacturing pointing to an ongoing slowdown in the industrial side of the American economy while the labor market remained healthy.
• *The S&P Global manufacturing PMI came in at 48.4 for May, down from 50.2 in April. Additionally, the May ISM manufacturing report showed a slowdown last month, with the gauge coming in at 46.9, down from 47.1. Construction spending, meanwhile, showed growth of 1.2% in April, following a revised gain of 0.3% during the prior month.*
• These data points are “material evidence” that the Fed’s policy is having an impact on inflation, and inflation “seems to be moving in the right direction.
• *In other economic data, the ADP private-sector employment data showed that the U.S. added 278,000 in May, surpassing economists’ expectations by nearly 100,000.*
• *Meanwhile, the number of Americans who applied for unemployment benefits at the end of May edged up to a one-month high of 232,000, according to the latest weekly data. But still there were no signs of major layoffs.*
• “The economic data is hitting right in goldilocks land where it’s not too hot, but certainly constructive,” Art Hogan, chief market strategist at B. Riley Wealth, said during a phone interview with MarketWatch.
• “We’re in a sweet spot right now,” Hogan added, explaining that the data are strong enough to assuage fears that the economy is sinking into recession, but not so strong as to pressure the Federal Reserve to deliver another interest-rate hike when its next two-day policy meeting concludes on June 14.
• *The data helped to reinforce the market’s perception that the Fed will likely leave interest rates on hold when its upcoming two-day policy meeting concludes on June 14. Senior Fed officials have recently said they would prefer to skip raising interest rates in June with the caveat that the central bank could return to hiking rates later in the year.*
• The Fed delivered its 10th consecutive rate hike after its May policy meeting, when it raised its policy-rate target by 25 basis points to 5.25%.
• *Investors were also applauding the debt-ceiling progress after the House of Representatives Wednesday night passed the Fiscal Responsibility Act, keeping the U.S. government on track to avoid a default by raising the federal government’s legal borrowing capacity before June 5, the so-called “X date.” Senators from both parties had previously pushed for amendments to the bill that would have required it to be sent back to the House for another vote, sparking concerns that the bill might hit a snag.*
• The Fiscal Responsibility Act passed by a vote of 314-117 with bipartisan support on Wednesday night. Senate Majority Leader Chuck Schumer, D-N.Y., said the Senate will stay in session until a bill is sent to President Biden’s desk.
• Anytime a big negative or a big potential negative catalyst is removed, it helps remove some uncertainty from the market. But at the same time, the equity market, at least, had really looked through this story.”
• *Beyond the debt ceiling battle, investors are looking ahead to the Federal Reserve’s June 13-14 policy meeting as another possible market catalyst. Philadelphia Fed President Patrick Harker said Thursday that he thinks the central bank is near the point of being able to stop interest rate hikes. But he said earlier in the week that Friday’s payrolls report could change impact how he’ll vote at the upcoming gathering.*
• A renewed rally in mega-cap technology stocks Thursday fueled another round of rebound in U.S. stocks, pushing the large-cap S&P 500 to close at its highest level since August 19, while the tech-heavy Nasdaq was at its highest close since August 16, 2022, according to Dow Jones Market Data.
• Schein said the question is whether the S&P 500 stocks would play catch up to the 10 mega-cap tech shares that are leading the current rally, or there will be “a rollover effect” where the large-cap growth stocks that have been so strong year-to-date come back down to meet the rest of the S&P 500 constituents.
• “We suspect potentially we’re seeing is that rotational liquidity could bring up the laggards in the market, meaning there’s enough liquidity that if the large caps pause or even pullback, that money flow could rotate in the underperforming asset classes,” Schein said. “That looks attractive from a price-to-earnings ratio [perspective], and that could keep supporting for the S&P 500..”
• *Investor attention now turns to the May employment data from the U.S. Labor Department due Friday morning 8:30 a.m. Eastern. The U.S. is expected to add 180,000 jobs in May, down from 253,000 in the prior month, economists polled by the Wall Street Journal estimate. That would be the second-smallest increase this year.*
• The Nasdaq is up nearly 1% week to date, putting the technology-heavy index on pace for six straight weekly wins — a streak length not seen since January 2020. The S&P 500 is on track to end around 0.4% higher, while the Dow is poised to lose 0.1% on the week.
• *Extremely Nimble’*
• To Matt Maley at Miller Tabak, no matter how bullish investors might be about the potential for AI, they should be prepared to weather corrections along the way.
• “Investors will need to be quite careful, and extremely nimble, after these recent parabolic advances,” Maley said. “Sometimes, the deep corrections are long-lasting, like we saw after the dot-com bubble burst. Sometimes, they only last for a few weeks and are followed by new, very strong rallies that take the stocks even higher.”
• The tech rebound also pushed C3.ai Inc. off its session lows, with the AI software firm paring a plunge of 24% by almost half.
• A long-time Tesla Inc. bull poured water on investors’ hopes that the electric-vehicle maker’s shares can get a sizable lift from the AI hype. While it is “tempting to speak in platitudes about Tesla’s AI chops,” the stock’s direction will be dominated by the supply and demand of electric cars over the next 12 months, said Morgan Stanley analyst Adam Jonas.
• *European stock markets closed higher Thursday amid hopes that the drama over the U.S. debt ceiling was entering its final stages.*
• Almost all sectors gained, with mining stocks up 2% after Chinese factory activity beat expectations. Media stocks rose 1.8%, while household goods closed 0.2% lower.
• *On the data front, investors are analyzing flash euro zone inflation figures, which showed inflation falling more than anticipated. The consumer price index was up 6.1% from the previous year, which was less than the 6.3% anticipated by economists polled by Reuters. Inflation was at 7% in April.*
• Flash readings this week from Germany, France and Spain all showed slowdowns in price rises, significantly more than expected by analysts. Italian inflation came in higher than forecast but still declined.
• *Companies in focus*
• • Nordstrom Inc. finished 4.7% higher on Thursday despite the upscale department-store chain reporting better-than-expected first-quarter results and held to its full-year outlook, despite what executives said was as an “uncertain” economic backdrop.
• • Macy’s Inc.’s stock rose 1.2% after the department-store chain posted weaker-than-expected fiscal first-quarter sales and cut its full-year guidance to reflect a challenged consumer.
• • Salesforce Inc. fell 4.7% even though executives predicted record adjusted earnings in the second quarter and increased their guidance for record profit for the full year Wednesday.
• • C3.ai Inc.’s stock tumbled 13.2% after the fiscal fourth-quarter results show the firm recorded a net loss of $64.9 million, or 58 cents a share, compared with a net loss of $58.4 million, or 55 cents a share, in the year-ago quarter.
• • CrowdStrike Holdings Inc. shares dropped 1.6% after the cybersecurity company forecast a less-than-perfect earnings outlook.
• • Victoria’s Secret & Co. sank 8.7% on Thursday after the intimate-wear maker cut its full-year sales outlook, saying weaker demand would likely endure for the rest of the year.
• *Key events this week:*
• # US unemployment, nonfarm payrolls, Friday
• *Currencies*
• # The Bloomberg Dollar Spot Index fell 0.6%
• # The euro rose 0.7% to $1.0762
• # The British pound rose 0.7% to $1.2530
• # The Japanese yen rose 0.4% to 138.82 per dollar
• *Cryptocurrencies*
• # Bitcoin fell 0.9% to $26,873.83
• # Ether rose 0.2% to $1,869.82
• *Bonds*
• # The yield on 10-year Treasuries declined four basis points to 3.60%
• # Germany’s 10-year yield declined three basis points to 2.25%
• # Britain’s 10-year yield declined seven basis points to 4.12%
• *Commodities*
• # West Texas Intermediate crude rose 2.9% to $70.04 a barrel
• # Gold futures rose 0.7% to $1,995.50 an ounce
• •