Daily Market Commentary - June 13, 2023 - Bonanza Portfolio

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

At opening, Sensex was up by 257.22 points or 0.41% at 62,981.93, and Nifty was up by 74.80 points or 0.40% at 18,676.30 while At close, the Sensex was up by 418.45 points or 0.67% at 63,143.16, and Nifty was up by 114.70 points or 0.62% at 18,716.20.

India's consumer price index (CPI) eased sharply to 4.25 % in May, hitting a 25-month low, helped by a softer rise in food prices and a favorable base effect. It has come under the Reserve Bank of India's upper tolerance limit of 6 % for the third month in a row. This month's CPI declined from 4.7 % recorded in April 2023 and 7.04 % in the year-ago period (May 2022). The consumer food price index eased to 2.91 % in May from 3.84 % in April. Rural inflation in May stood at 4.17 % while urban inflation stood at 4.27 %. However, CPI inflation remains above the RBI's medium-term target of 4% for the 44th month in a row.

RBI projected CPI inflation for FY24 at 5.1 % while announcing the second monetary policy committee stance for the fiscal on June 8, when it left the interest rates unchanged for the second time. RBI Governor Shaktikanta Das led the rate-setting panel has predicted inflation at 4.6 % for Q1 FY24.

Indian Rupee appreciated by 8 paise as inflation fell to a 25-month low.. The weak US Dollar and positive domestic markets also supported Rupee. However, FII outflows capped sharp gains. U.S. Dollar declined on rising expectations of a pause in a rate hike in the June FOMC meeting. The surge in Euro and Pound also weighed on the Dollar.European stock were trading higher as investors braced for the latest meeting of the U.S. Federal Reserve, which begins Tuesday.

Britain's labour market outperformed even the highest expectations of economists polled by Reuters in data on Tuesday, piling pressure on the Bank of England to raise interest rates again in the face of unrelenting price pressures.

All the sectoral indices ended in the green with Realty up by 2 %, while FMCG, Pharma, Metal and PSU Bank up by 1 % each.

Cipla, Tata Consumer Products, Titan Company, Asian Paints and ITC were among the top gainers on Nifty, while losers were Kotak Mahindra Bank, Adani Enterprises, HCL Technologies, M&M and Adani Ports.

Source : Equity Bulls

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