Broader market trades firm; metal stocks shine

The benchmark indices traded with modest gains in early afternoon trading. At 12:20 p.m. IST the barometer index, the S&P BSE Sensex, rose 213.44 points or 0.41% to 52,062.92. The Nifty 50 index rose 73.25 points, or 0.47%, to 15,649.45.

In the broader market, the S&P BSE Mid-Cap Index rose 1.03% while the S&P BSE Small-Cap Index rose 1.29%.

The market breadth was strong. On the BSE, 2,120 shares rose and 884 shares fell. A total of 152 shares remained unchanged.

Derivatives:

The NSE's India VIX, a measure of the market's near-term volatility expectation, fell 8.35% to 15.7725. The Nifty June 24, 2021 futures traded at 15,688.60, a premium of 39.15 points over the spot price at 15,649.45.

The Nifty option chain for expiration on June 24, 2021 showed a maximum call OI of 24.2 lakh contracts at the 16,000 exercise price. The maximum put OI of 30.4 lakh contracts was seen at the 15,000 strike price.

Sum index:

The Nifty Metal Index rose 1.27% to 5,299.65. The index gained 3.47% in two sessions.

Adani Enterprises (plus 4.22%), APL Apollo Tubes (plus 2.61%), NMDC (plus 1.83%), Vedanta (plus 1.74%) and JSW Steel (plus 1.37%) made progress .

Shares in the spotlight:

Wipro fell 0.06%. The IT major announced a partnership with Finastra on Wednesday to help corporate banks in the Asia-Pacific region accelerate their digital transformation. Companies will create a unique offering that combines Wipro's extensive service catalog with Finastra's front-to-back trade finance and cash management solutions.

MTAR Technologies grew 3.18% after the company's consolidated net income increased 103% to Rs 18.01 billion, while net sales rose 12.3% to Rs 69.16 billion in the fourth quarter of the FY21 versus the fourth quarter of FY20. Pre-tax profit increased 97.7% to Rs.25.24 billion in the fourth quarter of FY21 compared to Rs.12.77 billion in the fourth quarter of FY20. EBITDA increased 107% in Q4 FY21 to Rs 30.1 billion from Rs 14.5 billion in Q4 FY20. The company's backlog as of March 31, 2021 was Rs.415.9 billion, compared to Rs.345.1 billion on April 1, 2020.

Ruchi Soya Industries hit a top cycle of 5% at Rs 1,137.50 after announcing it had entered the nutraceutical and wellness products segment. The Board of Directors of Ruchi Soya Industries has approved the introduction of 100% vegetarian, preservative-free nutraceuticals to be marketed under the brands "Patanjali" and "Nutrela" in the medical, exercise and general nutrition categories.

The company brings 10 products to the market, viz. Vitamin B12, Iron Complex, Vitamin D, Vitamin C & Zinc Complex, Daily active, Daily Energy, Weight Gain and Omega and will soon bring more products to market. Ruchi Soya Industries is aiming for a product range in different product categories in the next year.

Coronavirus update:

The total number of confirmed COVID-19 cases worldwide was 17,16,75,856 with 36,91,552 deaths. India reported 17,13,413 active cases of COVID-19 infection and 3,37,989 deaths, while 2,63,90,584 patients have been discharged, according to data from the Government of India's Department of Health and Family Welfare.

India's daily new COVID-19 cases remained below 2 lakh for the seventh straight day. The country reported 1,34,154 new COVID-19 cases and 2,887 deaths on Thursday. A total of 2,11,499 patients have been discharged in the past 24 hours, bringing the country's active cases to 17,13,413.

PMI services:

IHS Markit India Services' PMI was 46.4 in May, up from 54.0 in April. The number fell for the first time in eight months. The most recent reading indicated a solid rate of reduction, but it was slower than that after the COVID-19 outbreak. Panelists said the decline in production was due to the escalation of the pandemic and the reintroduction of restrictions.

Pollyanna De Lima, Economics Associate Director at IHS Markit, commented on the latest survey results: "While PMI data released earlier this month showed that manufacturing managed to stay afloat in May, the service sector struggled when the pandemic escalated. " The exacerbation of the COVID-19 crisis and the associated restrictions suppressed domestic and international demand for Indian services. Total revenue declined for the first time in eight months, while the decline in external business was the sharpest since November last year, with concerns about the outlook emerging in a dip in sentiment could prevent job creation in the short term, with anecdotal evidence suggesting that a decrease in staff spending actually helped dampen the rate of wholesale price inflation The cost burden has historically been severe as the prices of a variety of supplies and fuels continued to rise. Only a small fraction of the companies shared additional cost burdens with their customers, which resulted in only a small increase in service fees. "

Economy:

India's goods exports saw a strong increase of over 67% last month compared to the same period last year. The Union's Department of Trade and Industry announced that total exports of goods from the country exceeded $ 32 billion in May this year.

She announced that the number is almost 8% higher even compared to the pre-COVID statistics for May 2019. Taken together, the export of goods for the months of April and May of this year is more than 12.5% ​​compared to the corresponding period in 2019.

The Department of Commerce also said that goods imports in the first two months of the current fiscal year were 5.41% lower than in the corresponding period in 2019. Given the value of imports of around $ 38 billion, the country recorded in the previous month a trade deficit of over $ 6 billion.

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