Daily Market Update: June 01, 2023
Markets open higher: Indian markets opened higher on June 1, tracking positive global cues. The Sensex was trading 242 points higher at 55,243, while the Nifty was up 65 points at 16,425.
FIIs continue to sell: Foreign institutional investors (FIIs) continued to sell Indian equities on June 1, offloading shares worth Rs 1,157 crore. This takes the total net outflow by FIIs to Rs 1.4 lakh crore so far in 2023.
Coal India shares surge: Shares of Coal India surged over 7% on June 1 after the government announced a hike in coal prices. The government has increased the price of coal by Rs 200 per tonne for the July-September quarter.
India GDP growth slows: India's GDP growth slowed to 4.1% in the fourth quarter of 2022-23, from 5.4% in the previous quarter. This is the slowest pace of growth in the last five quarters.
Vedanta shares fall: Shares of Vedanta fell over 3% on June 1 after the company reported a decline in its consolidated net profit for the March quarter. The company's net profit fell to Rs 5,825 crore in the March quarter from Rs 7,254 crore in the same quarter last year.
Adani shares rise: Shares of Adani Group companies rose on June 1 after the government announced a slew of reforms for the infrastructure sector. The government has allowed 100% FDI in the construction sector and has also announced a reduction in the minimum alternate tax (MAT) rate for infrastructure companies.
Patanjali Foods shares fall: Shares of Patanjali Foods fell over 4% on June 1 after the company reported a decline in its consolidated net profit for the March quarter. The company's net profit fell to Rs 120 crore in the March quarter from Rs 150 crore in the same quarter last year.
What to watch out for:
FIIs selling pressure: FIIs have been selling Indian equities aggressively in recent months. This is likely to continue to weigh on the markets in the near term.
GDP growth slowdown: The slowdown in India's GDP growth is a cause for concern. This could lead to a slowdown in corporate earnings growth, which could further weigh on the markets.
Inflation: Inflation remains a key concern for the markets. Any further rise in inflation could lead to higher interest rates, which could hurt corporate earnings and the markets.
Global cues: The global markets are also under pressure due to concerns about inflation and rising interest rates. This could lead to volatility in the Indian markets as well.
Daily Market Update: May 31, 2023
√ Sensex and Nifty Snap Four-Day Winning Streak
The Sensex and Nifty snapped their four-day winning streak on Wednesday, falling over 0.2%. The Sensex closed at 62,969.13, while the Nifty closed at 18,633.85.
√ Weak Global Cues Weigh on Markets
Weak global cues weighed on Indian markets on Wednesday. The S&P 500 and the Dow Jones Industrial Average fell over 0.5% in their previous session.
√ IT Sector Q4 Review: Mixed Numbers, Cautious Outlook
√ India Q4 GDP Data Expected Today
India's GDP data for the fourth quarter of 2022 is expected to be released today. Economists expect the GDP to grow at 4.5% in the fourth quarter, down from 5.4% in the third quarter.
Overall, the Indian market was subdued on Wednesday, with the Sensex and Nifty snapping their four-day winning streak. Weak global cues and mixed numbers from the IT sector weighed on markets. Investors will be closely watching the India Q4 GDP data, which is expected to be released today.
Key Highlights:
The Sensex and Nifty snapped their four-day winning streak on Wednesday, falling over 0.2%.
Weak global cues weighed on Indian markets on Wednesday.
The IT sector reported mixed numbers for the fourth quarter of 2022.
India's GDP data for the fourth quarter of 2022 is expected to be released today.
Investors' Takeaway:
Investors should remain cautious ahead of the release of India's GDP data for the fourth quarter of 2022. Weak global cues and mixed numbers from the IT sector could weigh on markets in the near term. Investors should focus on quality stocks with strong fundamentals and track the global cues closely.
