Nifty continues record run, Sensex jumps 69 points in early trade

Indian benchmark equity indices opened the month of June on a strong footing led by better than expected GDP numbers and a further decline in daily caseloads of Covid that came in 1,26,469 cases for today and strong FIIs buying interest will be positive for the market. Market participants will look forward to auto sales figures and manufacturing PMI data that will be released today. In opening trades Sensex jumped 69 points or 0.13% at 52,007 while the broader market index Nifty50 was trading at 15,605 up 22 points or 0.14%.

Bajaj Auto, ONGC, HDFC, IndusInd Bank & Bajaj Finance gained up to 3%. Whereas stocks like UltraTech Cement, Asian Paint, Nestle India, Dr Reddy’s and PowerGrid were the laggards losing anywhere between 0.29-0.76%.

Sectorally, Nifty Metal & Nifty Pharma indices lost 0.68% & 0.17% respectively. Nifty Auto surged 1.09%, Nifty Realty rose 0.40% and Nifty Bank was up 0.29%. While Nifty FMCG and Nifty IT indices were marginally up in the range of 0.02-.10%.

Meanwhile the volatility index India VIX cooled off further by 1.3% is at a 52- week low of 16.66.
The broader market mirrored the gains of benchmark indices as BSE MidCap and BSE SmallCap indices rose around 0.50% each.

“The fact that India VIX is at a 52- week low also indicates the resilience of the market. Q4 FY21GDP growth rate at 1.6% and annual GDP contraction at 7.3 % are better than expectations. Q4 numbers show robust growth in construction & manufacturing. This trend is likely to sustain in the last 3 quarters of FY 22 suggesting good prospects for related industries. Nifty has clearly broken out of the upper range and the bulls are in total control. Valuation concerns are now on the back burner,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Economy
India’s gross domestic product (GDP) for 2020-21 contracted by 7.3%, even as GDP for the year’s last quarter (January-March 2021) grew by 1.6%, official data released by the National Statistical Office showed on May 31.

Earnings today
ITC, Balrampur Chini Mills, Gujarat Gas, Radico Khaitan, Salasar Techno Engineering, Tata Coffee, Sterling and Wilson Solar, Fineotex Chemicals, Emami Paper Mills and others are slated to announce their results today.

ITC is likely to report tepid earnings for the quarter ended March, Centrum Broking is of the opinion that the non-cigarette FMCG business will report revenue growth of 10% on a yearly basis in the quarter aided by a low base in the year-ago quarter.

Stocks in spotlight
Auto stocks will be in focus as auto companies will start announcing monthly sales numbers for May starting from 1 June 2021.

Defence Stocks will be buzzing today as Defence Ministry comes up with 108 items negative list, Under this list, Govt bans item to importing these items to boost domestic

Magma Fincorp said that the company’s board has appointed Adar Poonawalla as the Chairman of the company.

Jammu & Kashmir Bank said that the meeting of the Board of Directors of the bank is scheduled on 4 June 2021, to consider/discuss the proposal of capital infusion in the bank by the Govt. of Jammu & Kashmir as its promoter shareholder to the extent of Rs 500 crore.

EPL (formerly known as Essel Propack), announced that they have been selected as a partner by Unilever, in their journey towards achieving 100% sustainability in the oral care segment. Accordingly, EPL will supply their APR approved, 100% recyclable and fully sustainable Platina Tubes, for the toothpaste category of Unilever.

Narayana Hrudayalaya’s consolidated net profit surged 468.65% to Rs 68.01 crore on 12.84% increase in total income to Rs 846.30 crore in Q4 March 2021 over Q4 March 2020.

Rupa & Company reported a consolidated net profit of Rs 65.90 crore in Q4 FY21 as against a net loss of Rs 4.28 crore in Q4 FY20. Total income rose 152.54% to Rs 457.24 crore.

Asian Granito India’s consolidated net profit surged 178.27% to Rs 19.59 crore on 66.89% increase in total income to Rs 434.27 crore in Q4 March 2021 over Q4 March 2020.

Allied Digital Services’ consolidated net profit rose 36.84% to Rs 3.90 crore on 1.94% increase in total income to Rs 96.29 crore in Q4 March 2021 over Q4 March 2020.

Global markets
Overseas, Asian stocks are trading mixed on Tuesday, as investors await the release of a private survey on Chinese manufacturing activity in May.

China’s factory activity expanded at the fastest pace this year in May. The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 52.0 last month, the highest level since December and inching up from April’s 51.9.

Markets in the US were closed on Monday for a holiday.