SENSEX GAINS 142 PTS; VIX SLIDES OVER 3%

The key equity indices continued to trade with decent gains in early afternoon trade. The Nifty hovered above the 18,650 mark. FMCG shares witnessed buying demand.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was up 142.06 points or 0.23% to 62,934.94. The Nifty 50 index gained 61.65 points or 0.33% to 18,660.65.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 0.87% while the S&P BSE Small-Cap index advanced 1.07%.

The market breadth was strong. On the BSE, 2,278 shares rose and 1,165 shares fell. A total of 136 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.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, slipped 3.18% to 11.02. The Nifty 29 June 2023 futures were trading at 18,741.50, at a premium of 80.85 points as compared with the spot at 18,660.65.

The Nifty option chain for the 29 June 2023 expiry showed maximum Call OI of 59.05 lakh contracts at the 19,000 strike price. Maximum Put OI of 57.5 lakh contracts were seen at 18,000 strike price.

Buzzing Index:

The Nifty FMCG index rose 0.96% to 51,529.40. The index declined 0.49% in past two trading sessions.

United Breweries (up 4.21%), Britannia Industries (up 3.43%), Nestle India (up 3.08%), Tata Consumer Products (up 2.64%), Marico (up 1.33%), Hindustan Unilever (up 0.97%), Colgate-Palmolive (India) (up 0.89%), Dabur India (up 0.84%), United Spirits (up 0.63%) and Godrej Consumer Products (up 0.2%) advanced.

On the other hand, Varun Beverages (down 2.59%), Radico Khaitan (down 0.66%) and Procter & Gamble Hygiene and Health Care (down 0.09%) edged lower.

Stocks in Spotlight:

Macrotech Developers rose 0.29%. The real estate developer on Tuesday announced that its board has approved the re-appointment of Raunika Malhotra as whole-time director of the company, based on the recommendation of Nomination and Remuneration Committee for a further term of two years with effect from 26 June 2023.

Venus Remedies added 0.83%. The company has announced the receipt of good manufacturing practices (GMP) certification from Ukraine for its Carbapenem, Oncology Parenteral facilities at its unit in Baddi, Himachal Pradesh.

Insecticides (India) advanced 2.86% after the company announced that the receipt of a 20-year patent for `substituted pyrazole derivatives and insecticides and fungicides`.

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