Business News Highlights: Markets Settle Sky-High, Sensex Closes 2,500 Points Up, Nifty Above 23,300
Business News Highlights: Please follow this space for all the breaking news and latest updates from the stock market, economy, and corporate world
Honda Motorcycle and Scooter India reported on Monday a 45 per cent gain in domestic wholesales at 4,50,589 units in May against 3,11,144 units sent to dealers in the same month a year earlier. The overall sales of the firm increased to 4,92,047 units in May 2024, from 3,29,393 units in the corresponding month last year.
The Indian rupee settled on peak two-month closing level of 83.14 (provisional) against the US dollar on Monday. The domestic unit opened at 83.09 and traded between 82.95 and 83.17 and finally closed at a gain of 28 paise at 83.14 against the American currency. In the last trading session on Friday, the rupee ended at 83.42 against the greenback.
The stock market settled the trading session on Monday in great sentiment, reacting to the exit polls predicting a clear victory for the ruling party. The S&P BSE Sensex closed the session at 76,468.78, jumping over 2,500 points, while the NSE Nifty50 ended the session at 23,307.25, gaining more than 750 points.
Welspun Corp Ltd on Monday announced that its associate entity, EPIC, signed mutliple agreements worth Rs 3,670 crore with Saudi Arabian Oil Co (Aramco) for supplying steel pipes. The company issued a statement and said, "Our associate company East Pipes Integrated Company for Industry (EPIC) today announced multi contracts sign off with Saudi Arabian Oil Co. (Aramco) with value exceeding (Saudi Riyal) SAR 1.65 billion (approximately Rs 3,670 crore) inclusive of value added tax for manufacturing and supply of steel pipes."
Tech M's subsidiary, Comviva, announced on Monday that it has appointed Rajesh Chandiramani as the CEO and whole-time director of the firm, effective June 1, 2024.
Japan Airlines said on Monday that it has entered a codeshare agreement with domestic carrier IndiGo to help the Japanese airline expand its services to 14 destinations in the latter's network. Currently, Japan Airlines operates flights to Delhi and Bengaluru from Tokyo. "The codeshare partnership will allow Japan Airlines to strengthen its connectivity into India initially, while enabling more travel options for IndiGo customers on JAL's extensive domestic and international network in later phases. The partnership will enable codeshare on India routes that connect to JAL-operated flights from/to Delhi and Bengaluru," an official statement noted.
India's manufacturing PMI for May 2024 eases to 57.5, the HSBC India Manufacturing PMI data revealed on Monday. The survey, compiled by S&P Global, showed that production in the sector suffered as heatwave forced firms to reduce working hours and a surge in costs piled on the growth slowdown.
Read More : India's Manufacturing PMI In May Eases To 57.5 As Heatwave Impacts Output Levels
Investors' wealth climbed Rs 12.48 lakh crore in the morning trading hours on Monday as the key equity benchmark indices reached fresh peaks following the exit polls' prediction of a massive win for the BJP-led NDA in the general elections. The market capitalisation of the firms listed on the BSE soared Rs 12,48,952.68 crore to touch an all-time high of Rs 4,24,61,833.82 crore during the morning trade.
IndiGo is set to host the next annual general meeting of the International Air Transport Association (IATA) in New Delhi in June 2025, the IATA informed in its current AGM. IndiGo CEO Pieter Elbers said, "The annual general meeting of IATA will be taking place in India after 42 years."
Mother Dairy announced on Monday that it is increasing the milk prices by Rs 2 per litre in the Delhi-NCR region owing to a surge in input cost in the last 15 months. The revision in prices will be applicable from June 3 in the national capital region along with other markets where the firm is present.
The Indian rupee soared 38 paise to touch its three-month peak of 83.04 against the US dollar in early trade on Monday. This appreciation was attributed to a strong sentiment in the domestic equity markets, supported by exit polls predicting a third term for PM Narendra Modi. At the interbank foreign exchange market, the domestic currency opened at 83.09 and appreciated further to touch 83.04 against the American unit in initial trade. In the last trading session on Friday, the Indian currency closed at 83.42 against the greenback, depreciating 13 paise.
Commenting on the market movements, market expert Sunil Shah, said, "When the election process concluded on 1st June evening and Exit Polls came out, all of them indicated the return of NDA Government to power. This is positive for market as market wants visibility and predictability. With the continuation of this dispensation, there will be a continuity in policy...Based on the outcome of Exit Polls, it is up by 2000 points...Going forward, if the kind of reforms that are expected by the market are announced, they will go further high."
The stock market opened trading on Monday on a bullish note. The indices soared as the markets reacted to the exit polls predicting an easy win for the PM Narendra Modi-led BJP. As of 9:30 AM, the S&P BSE Sensex roared ahead and traded at 75,980.37, surging more than 2,000 points and almost 3 per cent, while the NSE Nifty50 rallied ahead by over 600 points and 2.72 per cent to trade at 23,144.55.
The Gujarat Cooperative Milk Marketing Federation (GCMMF), which operates the 'Amul' brand, announced last night that it is hiking the milk prices by about Rs 2 per litre. The new prices will come into effect on Monday and be applicable across the country. The GCMMF in its statement said, "The increase of Rs 2 per litre translates to range of 3-4 per cent hike in MRP which is much lower than average food inflation. This price hike is being done due to increase in overall cost of operation and production of milk. Our member unions have also increased farmers' compensation by approximately 6-8 per cent over the last one year."
Background
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GIFT Nifty opened on Monday on a positive note. During the early hours, the futures climbed over 23,300, and later on around 8:50 AM, the futures traded above the 23,500 mark at 23,538.50.
In the previous trading session on Friday, the two key equity benchmarks, Sensex and Nifty, ended their losing streak of 5 days and settled the trading session with marginal gains. The S&P BSE Sensex closed trading above the 73,950 mark at 73,961, logging a gain of 76 points, while the NSE Nifty50 settled for the day at 22,531, inching up by 42 points.
The exit polls were released over the weekend and showed that the PM Narendra Modi-led BJP alliance is projected to not only win but secure a comfortable majority with 300 to 350 seats in the Lok Sabha elections.
“The market is approaching the event with caution, and the positive surprise from exit polls can lead to a rally as majority of the exit polls are giving 350+ seats to the NDA. Conversely, a negative surprise from actual results might trigger a knee-jerk reaction in the market,” commented Santosh Meena, Head of Research, Swastika Investmart Ltd.
Further, the Reserve Bank of India (RBI) is also set to meet for the next monetary policy committee (MPC) meeting on June 5, 2024. The central bank will announce the decision on key interest rates after the meeting concludes on June 7, 2024.
The exit polls are expected to influence a bull run in the markets today. However, historical patterns from the last two election results in 2014 and 2019 show that the market typically settles with minimal changes in the aftermath of such events after witnessing major volatility during the early trading hours.
On Friday, Foreign Institutional Investors (FIIs) acquired stock worth Rs 1,613 crore, while the Domestic Institutional Investors (DIIs) emerged as the net buyers after they bought shares worth Rs 2,114 crore.
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