Daily Market Commentary - June 1, 2023 - Bonanza Portfolio Ltd

By Mr. Rajesh Sinha, Sr. Research Analyst, BONANZA PORTFOLIO LTD

At opening Sensex was up by 21.63 points or 0.03% at 62,643.87, and Nifty was up 15.90 points or 0.09% at 18,550.30 while At closing, Sensex was down by 193.70 points or 0.31% at 62,428.54, and the Nifty was down by 46.60 points or 0.25% at 18,487.80.

The Indian economy grew 6.1 % in the January-March quarter (Q4) of the last fiscal to Rs 43.6 lakh crore that took the growth rate for 2022-23 to 7.2 %, or Rs 160.06 lakh crore a notch higher than Reserve Bank of India (RBI) projection.

A stable current account deficit, rising foreign exchange reserves, and inflation coming to an 18-month low of 4.7 % are positives for the economy. However, a below-normal monsoon impacting agriculture as well as volatile global commodity prices due to geopolitical uncertainties fuelling inflation.

Indian Rupee gained by 0.35% on favorable macroeconomic data. India's fiscal deficit narrowed to 6.4% in FY23 compared to 6.7% in the previous fiscal. India's economy expanded by 6.1% in Q4 FY2023 as compared to 4.4% in Q3 FY2023. Annual GDP also rose 7.2% in FY23 as compared to 9.1% in FY22. Manufacturing PMI expanded to a 31-month high at 58.7 in May vs 57.2 in the prior month and forecast of 56.5. The dollar eased on improved global risk sentiments after the US House passed the debt ceiling debt. Fed officials Patrick Harker and Philip Jefferson suggested that the central bank may pause its rate hike in June, leading to declining odds of a 25-bps rate hike.

Going forward, the market will closely monitor the actions of the Reserve Bank of India (RBI) in its upcoming monetary policy announcement on 8th June, as well as the Federal Reserve's decision on 14th June. Any potential interest rate hikes could unsettle market sentiment, given the fragile state of global economic recovery and the added pressure from China on global growth.

Coal India, Kotak Mahindra Bank, Bharti Airtel, SBI Life Insurance and HDFC Life were top losers, while gainers were Apollo Hospitals Enterprises, Divis Laboratories, Bajaj Auto, Tata Motors and Hero MotoCorp.

Source : Equity Bulls

Keywords

DailyMarketCommentary Nifty Sensex BonanzaPortfolio