The Indian stock market made a new record high on Thursday as investors adjust their positions for the weekly expiry of F&O contracts. The Indian stock market is the best performing large market since the crash of late March 2020
Also, Banking, financials, media and realty stocks pushed the market to move ahead with positive global cues.
BSE Sensex trading at 52,149 up by 300.48 points or 0.58%. The benchmark has touched an intraday high of 52,240.61. Nifty 50 was performing at 15,663 higher by 86.95 points or 0.63%. The index has soared to the day's high of 15,693.15.
Below are the key factors that moved the stock markets today.
Decline in covid cases:
India reported 1,34,154 new COVID-19 cases, 2,11,499 discharges, and 2,887 deaths, as per Health Ministry. Meanwhile, the media reports said that the US-India Chambers of Commerce Foundation has raised more than USD1.2 million for coronavirus-related efforts in India.
Sharp surge in sectoral indices:
Sugar stocks gained after the government brought forward the target date for achieving 20% ethanol-blending with petrol by two years to 2023 to help reduce India's dependence on costly oil imports. Reacting to this news, shares of Triveni Engineering & Industries, EID Parry (India),
Dhampur Sugar Mills, Dwarikesh Sugar Industries and Avadh Sugar & Energy were up in the range of 3-4%, respectively.
Meantime, Nifty Realty, Nifty Media surged by 2% and 1.4% and Nifty Financial Services climbed by nearly 1%.
RBI monetary policy in focus:
The RBI's monetary policy outcome is scheduled for tomorrow. The six-member MPC will continue their policy meet for the second day on Thursday. The central bank is expected to maintain the status quo and focus on economic growth while keeping an eye on inflationary pressure.
Bluechip stocks in demand:
Shares of
Reliance Industries (RIL) continued their northward movement for the seventh straight trading day to hit an over seven-month high on the BSE in intra-day trade on Thursday amid expectations of a good operational performance going forward. The scrip was quoting at its highest level since October 15, 2020. Mukesh Ambani, Chairman and Managing Director of Reliance Industries Ltd said that the company has a strong balance sheet to support growth. “We now have a strong balance sheet with high liquidity that will support growth plans for our three hyper-growth engines -- Jio, Retail and O2C,” he said.
Titan continues to touch a new historic high today as sentiments turn bullish as it touches a new all-time high, Rakesh Jhunjhunwala who is generally referred to as 'Warren Buffet of India', is set to add fruitful returns to his portfolio. The shares have clocked a new all-time high of Rs1,672.75 per piece during the early deals on Sensex. Titan stock is also racing towards the Rs1.5 lakh cr market capitalisation mark.
Global markets join the rally:
US indices finished marginally higher mainly led by a sharp rebound as stocks like AMC, GameStop, etc. witnessed a solid rebound yesterday. Non-farm payroll job addition data for May would be crucial for the market, which will be published tomorrow. The Dow Jones Industrial Average eked a 25.07 points gain to 34,600.38, the S&P 500 climbed 0.14% to 4,208.12 and the Nasdaq Composite rose 0.14% to 13,756.33.
Asian markets were mostly higher in Thursday trade with South Korea’s Kospi led gains regionally as it rose 1.01% and the Nikkei 225 gained 0.47% while the Topix index advanced 0.83%.
Stocks that moved most:
Snowman Logistics rallied over 14% after the company announced a strategic partnership with Dr Reddy’s Laboratories to provide temperature-controlled end-to-end logistics solutions for the delivery of the two-dose Sputnik COVID-19 vaccine across India.
Muthoot Finance hit a new high on the BSE in intra-day trade on Thursday after the firm reported a strong set of numbers for the quarter ended March (Q4FY21) with healthy business growth and improved asset quality. With today's gain, the scrip has surged 17% in two trading days.
MTAR Technologies Limited reported revenue of Rs69.2cr in the fourth quarter ended March 31, 2021, a rise of 12% yoy compared to Rs61.9cr in Q4FY20. Revenues stood strong at Rs246.4cr for FY21, a growth of 15% yoy compared to Rs213.8cr in Q4FY20. The stock has surged 5% in the morning trade.
Gateway Distriparks hits a new 52-week high after the company holds about a 40% stake in Snowman Logistics that has entered into a partnership with Dr Reddy's Labs for logistical support towards Covid-19 vaccine supply.
Losers & Gainers at these hours:
Titan, Kotak Bank, ONGC, Eicher Motors, and HDFC are the top gainers, while UPL, Tata Steel, Bajaj Auto, Tech Mahindra, and HCL Tech are the top losers.
India’s Service PMI contracts:
At 46.4 in May, down from 54.0 in April, the seasonally adjusted India Services Business Activity Index was in contraction territory for the first time in eight months. The latest reading pointed to a solid rate of reduction that was nevertheless slower than those seen in the aftermath of the COVID-19 outbreak, IHS Markit India Services PMI.
Oil rises for a third day:
Oil prices surged for a third day on expectations for a surge in fuel demand, particularly in the United States and Europe and China, later this year at the same time major producers are maintaining supply discipline. Brent crude futures were up 49 cents, or 0.7%, at $71.84 a barrel and US West Texas Intermediate crude futures rose 44 cents, or 0.6%, to $69.27 a barrel.