The key equity indices traded with minor gains in the morning trade. The Nifty was trading above 16,500 level. The Nifty PSU Bank index rose for the second consecutive session. Negative global cues dented investors sentiment.
At 10:25 IST, the barometer index, S&P BSE Sensex was up 78.65 points or 0.14% to 55,459.82. The Nifty 50 index rose 9.55 points or 0.05% to 16,532.30.
In the broader market, the S&P BSE Mid-Cap index fell 0.34% while the S&P BSE Small-Cap index gained 0.31%.
The market breadth was positive. On the BSE, 1,781 shares rose while 1136 shares fell. A total of 158 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 1,930.16 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 984.11 crore in the Indian equity market on 1 June 2022, provisional data showed.
The Nifty PSU Bank index rose 1.45% to 2,631.15. The index has gained 2.16% in two sessions.
Bank of Baroda (up 3.29%), Canara Bank (up 1.94%), Bank of India (up 1.15%), Punjab National Bank (up 0.96%), State Bank of India (up 0.76%), Punjab & Sind Bank (up 0.65%), Union Bank of India (up 0.52%) and Indian Bank (up 0.06%) were the top gainers while Bank of Maharashtra (down 0.85%) edged lower.
Stocks in Spotlight:
Reliance Industries advanced 2.71%. Reliance Brands (RBL) and Plastic Legno SPA have signed a joint venture arrangement through which RBL will acquire a 40% stake in Plastic Legno SPA’s toy manufacturing business in India. This investment by RBL serves a dual purpose, bringing in vertical integration for RBL’s toy business and helping diversify the supply chain with a long-term strategic interest in building toy manufacturing in India.
Hero MotoCorp fell 3.45% after the company said that the company had sold 486,704 two-wheeler units in May 2022 as against 183,044 units sold in May 2021. Sequentially, this translates into a growth of 16% over the month of April 2022, when the company had sold 418,622 units. Total domestic sales in May 2021 stood at 4,66,466 unit in May 2022, which is significantly higher as compared with 1,59,561 units sold in May 2021. Exports during the period under review declined 13.8% YoY to 20,238 units. Hero MotoCorp stated that the sales in May 2021 were impacted due to the resurgence in Covid-19 cases and subsequent lockdowns.
Greaves Cotton rallied 7.3% after the company announced that Abdul Latif Jameel International DMCC will infuse $150 million (Rs 1160 crore) for 35.8% stake in company’s wholly owned subsidiary, Greaves Electric Mobility (“GEMPL”). GEMPL has the right to secure additional funding of $70 million from investor over the next 12 months. Post money equity value for Greaves Electric Mobility stands at $419 million or Rs 3238 crore. Greaves Cotton market cap stand at Rs 3745 crore. Greaves Electric will continue to remain subsidiary of Greaves Cotton even after both the rounds of fund infusion.