Dear
Trader…
Key equity indices Nifty50 and Sensex closed over 3% higher
on Wednesday, led by index heavyweights Reliance Industries and banking stocks,
after two key allies pledged their support to form a new government following a
narrow win for BJP-led NDA alliance.
Nifty FMCG surged 4.3%, while Nifty Auto gained 4.7% on
expectations of rural demand. IT index was up 2.4%.
The 30-share BSE benchmark Sensex advanced 2,303 points or
3.2% to settle at 74,382. The broader NSE Nifty future gained 676 points or 3.08%
to end at 22,584.
Heavyweight bank stocks surged 4.5%, while the financial
services index jumped 4.2%, driving a surge in the Nifty. Bank stocks had
dropped nearly 8% on Tuesday.
The market capitalisation of all listed companies on the BSE
surged by Rs 13 lakh crore to Rs 407.8 lakh crore.
According to media reports, Narendra Modi is expected to be
sworn-in for a record straight third term on June 8, as Telugu Desam Party and
Janata Dal (United) pledged their continued support a day after a humbling
election verdict that saw his Bharatiya Janata Party (BJP) lose its majority in
parliament.
Global
Markets –
World shares rose on Wednesday and the dollar steadied with a
European Central Bank policy meeting coming into focus following soft US labour
market data that firmed up bets of a September rate cut by the Federal Reserve.
The MSCI world equity index, which tracks shares in 49
countries, added 0.05%, supported by a positive open in Europe and gains in
Asia.
The pan-European STOXX 600 index was up 0.5% and the MSCI’s
broadest index of Asia-Pacific shares outside Japan rose 0.9%. The Nikkei in
Tokyo fell 0.9% as the renewed strength in Japanese yen weighed.
Oil near four-month low – Oil prices hovered near four-month lows on Wednesday on an expected supply boost later in the year when OPEC+ begins to unwind some output cuts, with markets also digesting US jobs data and higher oil stocks. Brent crude futures were up 17 cents, or 0.22%, at $77.71 a barrel at 4:00 pm IST. U.S. West Texas Intermediate crude futures rose 16 cents, or 0.23%, to $73.39.
Both contracts fell over 1%
on Tuesday to their lowest settlement levels since early February, having
declined by about $3 a barrel on Monday.
Nifty futures opened at 21866.25 points against the previous
close of 21908.15 and opened at a low 21848.10 points. Nifty Future closed with
an average movement of 885.90 points and a rise of around 675.85 points and
closed 22584.00 points…!!
Rupee Ends Higher – The Indian rupee closed stronger on Wednesday, partially recovering from its slump in the previous session, aided by dollar sales from foreign banks and likely intervention from the Reserve Bank of India. The rupee closed at 83.37 against the US dollar, up nearly 0.2% compared with its close of 83.53 in the previous session.
The dollar index, which measures the US currency against six peers, was 0.1%
higher at 104.29, just above the near two-month low of 103.99 it hit on Tuesday.
At the start of intra-day trading, June gold opened at Rs.72077,
fell from a high of Rs.72243 points to a low of Rs.71811 with a rise of 174 points,
a trend of around Rs.72171 and July Silver opened at Rs.89898, fell from a high
of Rs.90000 points to a low of Rs.88912 with a rise of 141 points, a trend of
around Rs.89765.
Meanwhile,
The Indian market exhibited a spirited recovery
driven by broad-based buying across various sectors, as political stability
appears assured. However, attention will remain on the formation of the
government and the forthcoming RBI policy meeting.
Technically, the
important key resistances are placed in Nifty future are at 22584 levels, which
could offer for the market on the higher side. Sustainability above this zone
would signal opens the door for a directional up move with immediate
resistances seen at 22636 – 22808 levels. Immediate support is placed at 22303 –
22180 levels.
Past Performance is not an Indicator of Future Returns. The
securities quoted are for illustration only and are not recommendatory.Investment
in securities market are subject to market risks. Read Disclaimer and related
all the documents carefully before investing, mentioned on www.nikhilbhatt.in
