India Stocks Review: Indices end higher as metal, auto cos lead gains

Informist, Friday, Jun 2, 2023

By Neeshita Beura

MUMBAI – After some initial indecisiveness, the Nifty 50 and the Sensex ended in positive territory led by gains in the metals, financial services, automobile, and healthcare stocks as fears of a rate hike by the US Federal Reserve eased. Excluding energy, oil and gas, and information technology, all sectors ended in the green.

The Nifty 50 ended 0.3% higher at 18534.10 points and the Sensex closed 0.2% higher at 62547.11 points today.

Nifty Auto continued to be supported by Thursday’s May sales numbers and hit a record high of 14402.25 points at 1528 IST. Hero MotoCorp, TVS Motor Co, Maruti Suzuki India, Mahindra & Mahindra, and Bajaj Auto led the gains after posting growth in their sales numbers for May. The two-wheeler segment outshone the other segments, according to several reports by brokerage firms, with IDBI Capital mentioning that the segment witnessed recovery due to improved demand during the wedding season.

A technical analyst with a domestic brokerage firm, however, highlighted a risk to the index and said “Automobile sector outperformed in May, but there is a risk that the sector will underperform if it closes below 14100 points.”

Shares of Hero MotoCorp rose to hit an eight-month high of 2,912.65 rupees after the company reported a year-on-year rise of 6.7% in its total sales in May at 519,474 units.

Shares of Bajaj Auto extended gains for the second day and hit an all-time high of 4,707.00 rupees as it reported a 29% on-year growth in its May sales on Thursday.

TVS Motor Co, which reported a 9% on-year rise in its May sales to 330,609 units driven by two-wheeler sales, saw its shares rise slowly and gradually in the day. The stock ended 2.6% higher at 1,305.55 rupees.

“However, in the immediate term one should be cognizant of the high probability for exports to slowdown with almost all auto companies reporting a decline in the exports component,” highlighted Joseph Thomas, head of research at Emkay Wealth Management.

Among metal companies, shares of Hindalco Industries, Welspun Corp, and Jindal Steel & Power led the gains in the Nifty Metal index. Shares of Hindalco Industries ended 3.5% higher at 420.75 rupees amid positive sentiment around metal stocks following unexpected growth in factory activity last month in China, the top consumer of metals. Adani Enterprises, a major constituent of Nifty Metal and Nifty 50 was up in the morning but erased all of its gains starting 1230 IST to become the worst hit among Nifty 50 companies.

The Nifty FMCG hit a lifetime high of 51399.55 points at 1335 IST, led by gains in Emami, Radico Khaitan, ITC and Nestle amongst many other companies. Although fears about rate hikes by the US Federal Reserve have eased to some extent, the market is expected to consolidate this month as traders are cautious about the delay in Nifty 50 hitting its record high amid inflationary pressure, said an analyst. This makes defensive sectors, fast moving consumer goods and pharmaceutical stocks a good buy.

The Nifty Realty, which emerged as the top sectoral gainer today, moved in a very narrow range throughout the day, led by a rise in Indiabulls Real Estate, DLF, and Sobha Ltd.

Shares of Havells India, IndusInd Bank, Infosys, JSW Energy, and Page Industries ended lower as the stocks trades without the value of their dividend.

“Mixed global cues combined with a lack of decisiveness in the banking pack are causing uncertainty. However, rotational buying in other sectors and outperformance of the broader indices are helping the traders to put on a brave face,” said Ajit Mishra, senior vice president of technical research at Religare Broking in a note.

* Of the Nifty 50 stocks, 35 rose and 15 fell

* Of the Sensex stocks, 22 rose and 8 fell

* On the BSE, 2,181 stocks rose, 1,364 fell, and 130 were unchanged

* Nifty Metal: up 1.2%; Nifty Auto: up 0.9%; Nifty Oil & Gas: down 0.7%

BSE NSE
Sensex: 62547.11, up 118.57 pts or 0.19% Nifty 50: 18534.10, up 46.35 pts or 0.25%

S&P BSE Sensitive Index Nifty 50
Lifetime High: 63583.07 (Dec 1, 2022) : Lifetime High: 18887.60 (Dec 1, 2022)
Record Close High: 63284.19 (Dec 1, 2022) : Record Close High: 18812.50 (Dec 1, 2022)

2023 1st day close: 61167.79 (Jan 2) : 2023 1st day close: 18197.45 (Jan 2)
2023 Closing High: 62345.71 (May 15) : 2023 Closing High: 18499.35 (May 26)

2023 Closing Low: 59288.35(Feb 27) : 2023 Closing Low: 17311.80 (Oct 17)

2023 High (intraday): 62562.67 (May 15) : 2023 High (intraday): 18508.55 (May 26)

2023 Low (intraday): 58699.20 (Jan 30) : 2023 Low (intraday): 17098.55 (Jan 17)

2022 1st day close: 59183.22 (Jan 3)       : 2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 63284.19 (Dec 1)             : 2022 Closing High: 18812.50 (Dec 1)
2022 Closing Low: 51360.42 (Jun 17)          : 2022 Closing Low: 15293.50 (Jun 17)
2022 High (intraday): 63583.07 (Dec 1)          : 2022 High (intraday): 18887.60 (Dec 1)

2022 Low (intraday): 50921.22 (Jun 17)         : 2022 Low (intraday): 15183.40 (Jun 17)
2021 Closing High: 61305.95 (Oct 14)          : 2021 Closing High: 18338.55 (Oct 14)
2021 Closing Low: 46285.77 (Jan 29)            : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 61353.25 (Oct 14)        : 2021 High (intraday): 18350.75 (Oct 14)
2021 Low (intraday): 46160.46 (Jan 29)         : 2021 Low (intraday): 13596.75 (Jan 29)-

2020 Closing High: 47751.33 (Dec 31)          : 2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23)           : 2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31)       : 2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24)         : 2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20)        : 2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19)         : 2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28))        : 2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23)          : 2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26)         : 2017 High(intraday): 10515.10 (Dec 26)

End

Edited by Vidhi Verma

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