Morning Alert.. *Bond, rupee strengthen as exit polls predict | Equity99
Morning Alert..
*Bond, rupee strengthen as exit polls predict comfortable majority for NDA*
The rupee and government bonds on Monday strengthened following exit polls predicting a decisive victory for the incumbent Bharatiya Janata Party-led National Democratic Alliance (NDA) in the Lok Sabha elections. The 10-year benchmark government bond yield softened 6 basis points to settle at 6.94 per cent on Monday, the lowest since April 7, 2022. The rupee gave up some early gain after reaching a more than a two-month high during the day. The local currency appreciated to Rs 82.96 against the dollar in early trade, witnessing the highest intraday gain since December 15, 2023. The rupee settled at Rs 83.15 on Monday against Rs 83.47 a dollar on Friday. The Reserve Bank of India (RBI) intervened in the foreign exchange market to mop up dollars to contain volatility in the exchange rate, said market participants. “The RBI bought dollars at around Rs 83. It could have bought around $200 million,” said Anindya Banerjee, vice-president (currency derivatives and interest rate derivatives), Kotak Securities. “Tomorrow (Tuesday) the rupee is expected to appreciate more, and the RBI will have to intervene in the market,” he added.
*Heatwave drags manufacturing growth to three-month low in May: PMI data*
India’s manufacturing growth slowed to a three-month low in May as intensive heatwave hampered production volumes leading to a softer rise in new orders and output. But the sector remained in expansionary territory in May. The headline Purchasing Managers’ Index (PMI) figure, released by HSBC on Monday, slipped to 57.5 in May from 58.8 in April. “Companies indicated that working hours had been reduced amid an intensive heatwave, which somewhat hampered production volumes. New orders also rose at a softer pace, but international sales increased to the greatest extent in over 13 years,” said the survey. A figure above 50 in the index denotes expansion and that below signifies contraction. Despite this mild loss of growth momentum, India’s manufacturing sector remained firmly in expansion midway through the first fiscal quarter, as growth was supported by new business gains, demand strength and successful marketing efforts.
* Global market action*
Dow Jones – Down by 0.01% or 4.75 points
FTSE – Down by 0.15% or 12.63 points
CAC – Up by 0.06% or 5.15 points
DAX – Up by 0.60% or 110.22 points
Gift Nifty – Up by 0.13% or 31.5 points
*FII/DII activities*
FII – Bought 6850.76 Cr worth of shares
DII – Bought 1913.98 Cr worth of shares.
*Stocks with high delivery Percentage*
AIA Engineering Ltd – 95.3%
Cera Sanitaryware Ltd – 90.2%
Whirlpool of India Ltd – 89.5%
Cholamandalam Financial Holding Ltd – 87.4%
Star Health and Allied Insurance Company Ltd – 86.2%
*Primary market activities*
IPO opening today
3C IT Solutions & Telecoms (India) Ltd (BSE SME) – Issue size 11.44Cr
Listing today
Beacon Trusteeship Ltd (NSE SME) – Subscribed 465.20x
*Commodities updates*
Gold – Rs 74350/10gm, Silver – Rs 92045/kg, Brcrude – Rs 6176/barrel, Copper – Rs 880.70/kg.
*Corporate News*
ZEE Entertainment plans to raise funds through issue of shares, QIPs.
United Breweries eyes strong growth in the premium beer segment.
Shriram Finance raises $468 million multi-currency funds as social loans.
