INDICES TRADE WITH MINOR GAINS, REALTY STOCKS IN DEMAND

The key equity indices traded with minor gains in mid-morning trade. The Nifty traded a tad above the 18,650 mark. Realty stocks extended gains for the sixth consecutive trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 95.56 points or 0.15% to 62,888.44. The Nifty 50 index gained 52.55 points or 0.28% to 18,651.55.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 0.85% while the S&P BSE Small-Cap index advanced 1.04%.

The market breadth was strong. On the BSE, 2,320 shares rose and 1,029 shares fell. A total of 150 shares were unchanged.

The three-day meeting of the Monetary Policy Committee of the Reserve Bank of India (RBI) began on Tuesday, 6 June 2023. The MPC decision will be announced by RBI Governor Shaktikanta Das on the last day of the meeting, which is Thursday, 8 June 2023. The RBI is reportedly likely to keep the policy repo rate unchanged, drawing comfort from the gradual easing of inflation.

Economy:

According to World Bank report, India will remain the fastest-growing economy (in terms of both aggregate and per capita GDP) of the largest EMDEs.

Growth in India is expected to slow further to 6.3% in FY2023/24 (April-March), a 0.3% point downward revision from January. This slowdown is attributed to private consumption being constrained by high inflation and rising borrowing costs, while government consumption is impacted by fiscal consolidation.

Growth is projected to pick up slightly through FY2025/26 as inflation moves back toward the midpoint of the tolerance range and reforms payoff.

IPO Update:

The initial public offer (IPO) of IKIO Lighting received bids for 4.52 crore shares as against 1.52 crore shares on offer, according to stock exchange data at 11:24 IST on Wednesday (7 June 2023). The issue was subscribed 2.97 times.

The issue opened for bidding on Tuesday (6 June 2023) and it will close on Thursday (8 June 2023). The price band of the IPO is fixed at Rs 270-285 per share. An investor can bid for a minimum of 52 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Realty index gained 1.02% to 503.50. The index jumped 6% in six trading sessions.

Phoenix Mills (up 3.9%), Prestige Estates Projects (up 2.11%), Godrej Properties (up 1.22%), Macrotech Developers (up 0.98%), Mahindra Lifespace Developers (up 0.74%), Indiabulls Real Estate (up 0.52%), Oberoi Realty (up 0.36%), DLF (up 0.23%) advanced.

On the other hand, Sobha (down 1.59%), Brigade Enterprises (down 1.19%) edged lower.

Stocks in Spotlight:

KPI Green Energy gained 2.60% after the company has received letter of intent (LoI) from Anupam Rasayan India to execute wind-solar hybrid power project under captive power producer (CPP). The aggregate LoI size is 40 MW capacity (comprising of 21.50 MW Wind and 18.50 MW Solar). The project is scheduled to be completed in the financial year 2023-24 in various tranches.

JSW Ispat Special Product added 1.12%. Kiran Menon, chief financial officer (CFO) of JSW Ispat Special Product, has resigned from his position, effective from close of business hours of 5 June 2023. Menon cited his resignation to pursue opportunities outside the Group.

Maan Aluminium rose1.66% after the company announced that its board will consider stock-split and bonus issue proposals on Friday (June 09).

Global Markets:

Most of the Asian stocks were trading higher on Wednesday as the region looks to China`s May trade data and a speech from Reserve Bank of Australia governor Philip Lowe, a day after Australia`s central bank defied expectations and raised its benchmark interest rate to its highest in 11 years.

Australia` first quarter gross domestic product expanded by 2.3% year-on-year. This was the slowest rate of growth in 18 months since the country emerged from a Covid-19 lockdown in September 2021.

US stocks rose on Tuesday, helped by some advances in economically sensitive sectors, as investors awaited inflation data and the Federal Reserve`s policy meet next week.

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