Markets end higher

Nifty50: 18,534▲ 46 (+0.25%)
Sensex: 62,428▲ 118 (+0.19%)

Hello, Earthlings!

Think of a planet with a signature red hue. Yes, it’s Mars. From ancient civilisations to modern day, Mars has seized our collective cosmic imagination. From being the fictional home for extraterrestrial life to its stunning landscapes of volcanoes and canyons, we’re obsessed with Mars. We’ve all seen pictures of the red planet, but tonight we’ll have the chance to see it live in action in the European Space Agency’s livestream. And while the images from Mars will be red, the markets today closed in the green. More on that later.

• After a choppy trading session, benchmark indices closed with meagre gains
• In all, 32 of the Nifty50 stocks closed in the green
• US Senate approved bill to raise debt ceiling, averts debt default

Among the Nifty sectoral indices, Realty (+1.4%) and Metal (+1.2%) were the top gainers, while Oil & Gas (-0.6%) and IT (-0.4%) were the top losers.

What’s trending

⭐ Coal India OFS sees strong response

Shares of the state-owned coal miner closed flat even as its offer for sale garnered a strong response from investors. On 1 June, Institutional investors bid for over 28.76 crore shares, while on 2 June retail buyers bid for over 2.58 crore shares of the company. The government is selling up to 3% of its stake in the company and is hoping to garner more than ₹4,000 crore.

⭐ Bank of Baroda to raise ₹5,000 crore in debt

The PSU bank on Friday said that it will raise additional capital up to ₹5,000 crore. The bank’s board has approved the raising funds through additional tier I or tier II debt capital instruments. For the March quarter, the bank posted a 168% YoY rise in net to ₹4,775 crore, up from ₹1,779 crore in the corresponding quarter of last year.

⭐ M&M Financial reports robust growth

Shares of the non-banking financial company (NBFC) were upbeat today after it reported robust growth in overall disbursement along with strong collection efficiency. In May 2023, the NBFC said its overall disbursement stood at nearly ₹4,150 crore, up 39% YoY, the company said in a business update. The collection efficiency was at 96% for May 2023 against 95% in the year-ago period.

⭐ Oil prices rise after US debt deal

International oil prices rose sharply, with Brent crude prices rising nearly 2% intraday to trade at $ 76.4 per barrel after the US Senate approved a bill to raise the debt ceiling, averting a possible default by the US government. Traders will now keenly look forward to the OPEC+ meeting on 4 June. 

In Focus

Macro indicators paint a rosy picture

Recent release of key economic indicators paints a robust picture of the domestic economy in the ongoing fiscal. During May, the Manufacturing PMI hit a 31-month high, while car sales and GST collections scaled a new high. Let’s take a closer look.

Manufacturing PMI hits 31-month high

India’s manufacturing activity in May increased to 58.7 from 57.2 in April. This was the strongest improvement in factory activity since October 2020, boosted by a strong rise in new orders and output. Experts believe the rise in factory activity showcases robust demand for Indian-made products both domestically and internationally.  

Robust car sales

In May 2023, the domestic auto industry recorded the highest-ever passenger vehicle sales for the month of May. The previous peak sales for May was observed in 2018. This rise comes amid improving semiconductor chip supply and higher demand for SUVs.

High GST collections and UPI transactions

Gross goods and services tax (GST) collection in May rose 12% YoY to 1.57 lakh crore, indicating that the economy is holding firm despite external headwinds. During the same period, the overall value of the UPI transactions stood at ₹14.8 lakh crore, a jump of 43% YoY.

These encouraging key economic data indicates that the domestic economy is in the pink of health amid a slowdown in the global economy. 

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