TATA Chemicals surge on expansion plans, ONGC rallies on oil production cut by OPEC

Indian Markets:

• Domestic equity benchmarks concluded the trading session higher for the second consecutive day, with the Nifty 50 index hovering around the 18,600 mark.
• Stocks in sectors such as Auto, Media, and Private Banks recorded gains. However, shares in the FMCG, Public Sector Banks, and IT sectors experienced pressure and were the laggards in the market.
• The resolution of the uncertainty surrounding the US debt ceiling uplifted the market sentiment.
• The anticipation of a pause in US Federal Reserve rate hikes also contributed positively to the domestic market.
• Investors are projecting a more dovish stance from the Federal Reserve in its forthcoming Federal Open Market Committee (FOMC) meeting on June 13-14.
• Market participants are also eagerly waiting for the outcomes of the Reserve Bank of India’s (RBI) meeting, scheduled for June 8.

Global Markets:

• Shares in Europe and Asia advanced on Monday, as investors bet that the Federal Reserve would pause its rate hikes this month after a mixed U.S. jobs report.
• On Friday, U.S. stocks closed higher after a report showed that wage growth in May was not as strong as expected. This suggests that the Federal Reserve may not raise interest rates at its next meeting, which is scheduled for two weeks from now. Investors were also relieved by a deal reached in Washington that will prevent the U.S. from defaulting on its debt.
• U.S. President Joe Biden signed into law a debt ceiling bill over the weekend, which allowed the U.S. to avert defaulting on its financial obligations.

Stocks in Spotlight:

• Tata Chemicals shares surged to an early trade high of Rs 1017.95 on June 5, marking a 4.62% rise from the previous close. This uptick came in the wake of the company’s announcement of a significant restructuring of its US operations and the launch of the Tata Group’s ambitious Rs 13,000 crore expansion plans. These plans will spearhead the establishment of a gigawatt-scale lithium-ion manufacturing facility in Gujarat.
• Mahindra Lifespace shares enjoyed a rise to Rs 459.50 on June 5, registering a 2.34% surge from the previous close. This uptick followed the company’s announcement that OMRON, a leading health equipment manufacturer, intends to establish a factory at Origins by Mahindra, located in Chennai. Despite the early surge, the stock slightly corrected to Rs 449 during the latter part of the trading day.
• Shares of ONGC registered a modest uptick on June 5, buoyed by robust crude prices. This strengthening in crude prices came on the heels of Saudi Arabia’s announcement of yet another round of crude oil production cuts commencing in July. The OPEC nation plans to reduce crude oil supply by a substantial 1 million barrels per day. Following the announcement, Brent crude appreciated by 1.23%, settling at $77.07, while West Texas Oil mirrored the movement, climbing 1.23% to close at $72.61.

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
• Noida based IKIO Lightings IPO to kick off on June 6th

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