Saturday, June 1, 2024

Nifty Hit Fresh Highs on Rally in IT, Auto Stocks, Gain 6%

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Indian equity indices hit fresh life highs on the last day of June, logging record closing levels led by IT, auto, banking and financial stocks. While Nifty 50 rose 217 points or 1.14% to settle at 19,189 on Friday, Sensex ended 803 points or 1.26% higher at 64,720 after robust economic data from the US eased fears of a slowdown and improved broader sentiment.

Nifty

From the Sensex pack, M&M, Infosys, and IndusInd Bank were the top gainers, rising 3-4%. Sun Pharma, TCS, Maruti, L&T, Power Grid, and Tech Mahindra also ended with gains. On the other hand, only ICICI Bank and NTPC closed with cuts.

On a half-yearly basis, S&P BSE benchmark Sensex jumped 3,913 points or 6.43% to end at 64,753. The broader NSE Nifty surged 1,084 points or 5.98% higher to end at 19,189.

The market capitalisation of all listed companies on BSE surged by Rs 2.36 lakh crore to Rs 296.47 lakh crore in Friday’s trade. Meanwhile, in June, that of all listed firms on BSE advanced Rs 12.35 lakh crore to Rs 296.47 lakh crore.

In the broader market, Nifty Midcap100 touched a new 52-week high of 35,782, rising 0.66%. Nifty Smallcap100 closed 0.42% higher. Sector-wise, Nifty IT advanced 2.5%, Nifty Auto surged 2.07%, and Nifty PSU Bank gained 2.06%. Nifty Financial Services and Nifty Pharma also closed with gains.

Expert Views
“The lack of global support had restrained the Indian indices from pursuing their record highs earlier, despite the presence of a resilient domestic macroeconomic background. With positive surprises assisting buoyancy in the global market and the advance of the southwest monsoon, the domestic market succeeded in marching to new highs with renewed strength,” said Vinod Nair, Head of Research at Geojit Financial Services.

“Global investor sentiments were uplifted by a favourable revision in Q1 GDP, a fall in jobless claims, and the positive outcome of the Fed’s US bank stress test,” Nair added.

Aditya Gaggar Director of Progressive Shares, said, “On the weekly time frame, Nifty50 has given the much-awaited range breakout with above-the-stomach candlestick pattern coupled with a Rounding Bottom pattern breakout. As per the pattern, the approximate target comes to around 20,800.”

Global Markets
Global shares were steady on Friday as investors scrutinised inflation data from both sides of the Atlantic to cap a rollercoaster quarter for markets that upended bets on interest rates peaking.

Stocks in Asia inched higher as weak factory activity data from China stoked expectations of fresh stimulus. China’s blue-chip CSI300 Index and the Shanghai Composite Index rose about 0.5%, while Hong Kong’s Hang Seng Index was flat. Japan’s Nikkei ended slightly lower but surged 27% in the first half, driven by a boom in chip-related companies and inflows into trading houses.

In Europe, the STOXX index of 600 companies was 0.6% ahead, and ahead 7.5% so far this year.

Oil prices rise
Oil prices rose to nearly $75 a barrel on Friday but were on course for a fourth consecutive quarter of losses amid concerns over sluggish global economic activity and fuel demand.

Benchmark Brent crude futures for September delivery rose 11 cents or 0.15% to stand at $74.62. US West Texas Intermediate crude (WTI) rose 8 cents or 0.09% to $70.51. The contract is down 7% on a quarterly basis, its second consecutive quarterly drop.

Rupee strengthens
The Indian rupee was little changed on Friday, but ended June with its highest gains since January, on the back of strong foreign fund inflows into equity markets.

The rupee ended at 82.0375 per dollar, compared to its close of 82.0550 in the previous session. In the month, the rupee rose 0.77%, highest since a 1.19% appreciation in January.

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Also read: Maruti Suzuki Sales up 2% in June at 1,59,418 Units

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