The last phase of the Lok Sabha polls ended on Saturday, following which the exit poll results forecast a historic third term for Prime Minister Narendra Modi. The counting for the Lok Sabha polls will take place on Tuesday, June 4.

As per provisional closing data, the barometer index, the S&P BSE Sensex galloped 2,507.47 points or 3.39% to 76,468.78. The Nifty 50 index soared 733.20 points or 3.25% to 23,263.90

The Sensex and Nifty clocked an all-time high of 76,738.89 and 23,338.70 respectively in early trade.

In the broader market, the S&P BSE Mid-Cap index advanced 3.54% and the S&P BSE Small-Cap index gained 2.05%.

The market breadth was positive. On the BSE, 2,340 shares rose and 1,620 shares fell. A total of 155 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 14.89% to 20.94.

Economy:

India's manufacturing sector growth softened to a three-month low in May. The HSBC final India Manufacturing Purchasing Managers' Index, compiled by S&P Global, dipped to 57.5 in May from April's 58.8, below a preliminary estimate of 58.4.

However, the index remained above its long-run average and has been above the 50-mark separating contraction from expansion for almost three years. Firms showed the highest level of positive sentiment in more than nine years on expectations that demand will remain buoyant. The optimism prompted companies to add jobs at the fastest pace since November 2022.

India's GDP grew at 7.8% in Q4 of FY24, raising the full-year growth estimate to 8.2%, according to data released by the Ministry of Statistics and Programme Implementation (MOSPI) on Friday.

India's GST collections rose 10% YoY to Rs 1.73 lakh crore in May 2024, driven by a surge in domestic spending. This strong domestic performance points to a healthy economy, despite a 4.3% decline in imports.

Meanwhile, the combined Index of Eight Core Industries (ICI) increased by 6.2% (provisional) in April, 2024 as compared to the Index in April, 2023. The production of Electricity, Natural Gas, Coal, Steel, Refinery Products, Crude Oil and Cement recorded positive growth in April 2024. The final growth rate of the Index of Eight Core Industries for January 2024 is revised to 4.1%. The cumulative growth rate of ICI during 2023-24 reported 7.6% (provisional) as compared to the corresponding period of last year.

Further, after rising for three consecutive weeks, India’s forex reserves fell $2.027 billion to $646.673 billion for the week ended May 24, according to the latest RBI data.

For the week ended May 24, foreign currency assets, a major component of the reserves, decreased by $1.51 billion to $567.499 billion, the data released on May 31 showed.

Gold reserves decreased by $482 million to $56.713 billion during the week ended May 24. The special drawing rights (SDRs) were down by $33 million to $18.135 billion, according to the latest RBI data.

India’s reserve position with the IMF was also down by $1 million to $4.326 billion in the reporting week, the apex bank data showed.

IPO Update:

The initial public offer (IPO) of Kronox Lab Sciences received 5,55,81,790 bids for shares as against 66,99,000 shares on offer, according to stock exchange data at 15:20 IST on Monday (03 June 2024). The issue was subscribed 8.30 times.

The issue opened for bidding on Monday (03 June 2024) and it will close on Wednesday (05 June 2024). The price band of the IPO is fixed between Rs 129 to Rs 136 per share. An investor can bid for a minimum of 110 equity shares and in multiples thereof.

Buzzing Index:

The Nifty PSU Bank index soared 8.40% to 8,006.15. The index rallied 9.78% in two consecutive trading sessions.

Central Bank of India (up 11.91%), Bank of Baroda (up 11.87%), State Bank of India (up 9.47%), Canara Bank (up 9.24%), UCO Bank (up 8.6%), Indian Bank (up 7.14%), Punjab & Sind Bank (up 6.8%), Indian Overseas Bank (up 6.24%), Union Bank of India (up 6.18%) and Punjab National Bank (up 5.83%) advanced.

May Auto sales impact:

Maruti Suzuki India rose 0.76%. The company announced that its total sales declined 1.98% year on year to 1,74,551 units in May 2024 as against 1,78,083 units sold in May 2023.

Mahindra & Mahindra (M&M) rallied 5.33% after the company announced that its overall auto sales for the month of May 2024 stood at 71,682 vehicles, registering a growth of 16.71% as against 61,415 vehicles sold in May 2023.

Tata Motors advanced 3.05% after the auto major’s domestic and international vehicle sales for May 2024 stood at Rs 76,766 units, up 2.39% as compared with 74,973 units in May 2023.

Bajaj Auto gained 2.70% after the company reported a marginal increase in total auto sales to 3,55,323 units in May 2024 as against 3,55,148 units in May 2023.

Ashok Leyland jumped 5.54% after the company’s total vehicle sales jumped 12% to 14,682 units in May 2024 from 13,134 units in May 2023.

Hero MotoCorp rose 0.84%. The company sold 498,123 units of motorcycles and scooters in May 2024, which is lower by 4.11% as compared with sales of 519,474 units recorded in May 2023.

Eicher Motors declined 1.19%. The vehicles manufacturer’s unlisted subsidiary, VE Commercial Vehicles (VECV) reported 9.7% year over year increase in commercial vehicles (CV) sales to 6,901 units in May 2024.

TVS Motor Company rallied 3.28% after the company said that its total sales jumped 12% to 369,914 units in May 2024 as compared with 330,609 units in May 2023.

Stocks in Spotlight:

Adani Ports and Special Economic Zone climbed 10.61% after the company said that it has handled approximately 35.8 million metric tonnes (MMT) of cargo volumes in May 2024, which is almost flat on a year-over-year (YoY) basis.

Angel One rallied 4.62% after the company said that its wholly owned subsidiary, Angel One Wealth has incorporated (one) wholly owned Subsidiary, namely, Angel One Investment Services on 30 May 2024.

REC surged 12.62% after the company's board has approved to raise funds by way of non-convertible debentures (NCDs) on a private placement basis upto an aggregate amount of Rs 1.45 lakh crore.

Bondada Engineering was locked in an upper circuit of 5% after the company announced that its board is scheduled to meet on 5 June, 2024 to consider raising funds via private placement basis.

Ashoka Buildcon rallied 6.57% after it emerged declared as the lowest (L-1) bidder for the two projects awarded by Maharashtra State Road Development Corporation (MSRDC) aggregating up to Rs 2,152.72 crore.

InterGlobe Aviation added 2.90% after the media reports suggested that the company has agreed on a codeshare partnership with Japan Airlines (JAL) that will greatly benefit customers by providing more travel options between Japan and India.

NMDC advanced 3.40%. The state-owned miner's iron ore production declined by 36.92% to 2.34 million tonnes (MT) in May 2024 as against 3.71 MT produced in May 2023.

Ganesha Ecosphere rose 1.64% after the company said that its board has granted approval for making a strategic investment of Rs 16 crore in the equity share capital of RACE Eco Chain (RACE).

Global Markets:

European stocks advanced while Most Asian stocks ended higher on Monday as investors anticipated a rate cut in Europe this week, potentially marking the first time the European Central Bank (ECB) eases policy ahead of the U.S. Federal Reserve. The ECB is widely expected to lower rates by 0.25% to 3.75% on Thursday.

Meanwhile, positive data emerged from China, a key driver for regional growth. The Caixin manufacturing Purchasing Managers' Index (PMI) for May came in at 51.7, indicating continued expansion in the sector. This suggests some resilience in the Chinese economy.

US stocks closed mostly positive on Friday, with the S&P 500 recovering from early losses to end the day in the green. The Dow Jones Industrial Average jumped 574.84 points, or 1.5%, to close at 38,686.32. The S&P 500 rose 0.8%, while the Nasdaq Composite slipped less than 0.1%.