ATA Consumer rallies on positive management commentary, HAL surges on upcoming GE partnership

Indian Markets:

• Domestic equity indices have maintained a positive trend, with gains for the fourth consecutive trading session. Despite a slow start, the Nifty surpassed the 18,700 levels, adding to the overall market enthusiasm.
• Realty, metals, and FMCG sectors demonstrated outperformance, whereas banks and pharma sectors trailed behind.
• Market watchers eagerly await the RBI’s credit policy announcement on Thursday, which may offer insights into future interest rates. Amid improving domestic macroeconomic conditions, investors hold hopes for a pause in rate hikes.
• The World Bank report projects India to retain its status as the fastest-growing economy among major Emerging Market and Developing Economies (EMDEs), considering both aggregate and per capita GDP.
• However, the report anticipates a further slowdown in India’s growth to 6.3% in FY2023/24 (April-March), marking a 0.3% point downward revision from January.
   

Global Markets:

• European markets declined on Wednesday, while Asian stocks traded mixed. Investors are awaiting key economic data, including inflation data from the United States and the Federal Reserves policy meeting next week.
• Chinas exports in May 2023 declined 7.5% year-on-year, sharply lower than the 0.4% fall expected. Imports saw a smaller fall of 4.5% year-on-year. The country’s trade surplus in May was $65.81 billion, down 16.1%.
• Australia’s first quarter gross domestic product expanded by 2.3% year-on-year. This was the slowest rate of growth in 18 months since the country emerged from a Covid-19 lockdown in September 2021.

Stocks in Spotlight:

• Tata Consumer Products‘ shares saw an increase of over 2.5% on June 7, following the Tata Group chairman N Chandrasekaran’s announcement at the annual general meeting regarding the group’s openness to acquisitions and expansion into new categories. The management remains optimistic about the Indian market, forecasting that its business growth will surpass international markets.
• Hindustan Aeronautics Ltd shares experienced a rise of over 3% on June 7, fueled by reports of an impending agreement with General Electric (GE) for co-production of jet engines in India. The U.S. Biden administration’s approval of this cooperation comes prior to Prime Minister Modi’s scheduled visit to the U.S. later in the month. The two firms had initially entered into a deal in 2012, but it faltered due to the Indian government’s demand for a higher level of technology transfer. Now, an agreement on enhanced technology transfer has reportedly been reached, positioning India as a unique partner to the U.S. in this respect.
• Suzlon Energy’s shares surged 14 percent on June 7, marking its third consecutive day of gains. The company’s recent milestone of achieving 20 GW of wind energy installations across 17 countries has stoked investor sentiment. With the deployment of 12,647 wind turbines, Suzlon is now capable of generating enough green electricity to power upwards of 13 million Indian households.

News from the IPO world🌐

• Ola Electric aims for IPO by 2023 end, hires Goldman, Kotak
• SEBI proposes to cut down IPO listing timeline to 3 days
• IKIO Lightings IPO subscribed 6.83 times on Day 2

Day Leader Board

Sectoral Performance

Advance Decline Ratio

Numbers📈 that matter