The Bank Nifty Index hits new all time high of 51,106.15 lead by Bank of Baroda, State Bank of India, Punjab National Bank, Axis Bank, IndusInd Bank, and ICICI Bank.

Commenting on the crude oil prices Mohammed Imran – Research Analyst, Sharekhan by BNP Paribas said that We remain bullish on crude oil demand and price outlook for medium to longer term, driven by OPEC+ extension of its crude oil production cut policy till end of 2025 while voluntary cuts of 2.2 mbpd will be maintained till end of September 2024.

Imran also added The economic data from Asian giants have infused demand optimism as China Caixin mfg grew at fastest pace of 51.7 since June 2022, while India clocked GDP rate of 8.2% for FY-2024. Two of the Asian nations account of 20-22% of annual global demand and expected to led the incremental crude oil demand in 2024.

Talking about the outllook Imran added that Crude oil prices are having strong support of $75, while the initial reaction of OPEC+ decision had a knee jerk sell off reaction, but we expect the summer driving season from along with Hurricane season could see WTI trading above $80 in coming weeks. For the day we advise buying the dip in the counter.

Nymex WTI July : Support $76, Resistance :$80

MCX Crude June : Support Rs 6345 , Resistance Rs 6600

On Monday, June 3rd, shares of Rail Vikas Nigam Ltd. (RVNL) reached a milestone by crossing the Rs 400 mark for the first time, setting a new record at Rs 425 ganning over 11%. This surge also propelled the company’s market capitalization close to the ₹85,000 crore mark.

On Monday, shares of Power Grid Corporation of India Ltd. surged by as much as 9.9%, reaching a new record high of Rs 340.7.

IRB Infrastructure Developers (IRB Infra) has experienced a significant surge, with its stock soaring by as much as 50% in approximately three months. On Monday, the stock opened 10% higher, reaching a day’s high of Rs 74.60.

On Monday, State Bank of India, India’s largest lender, surpassed a market capitalization of Rs 8 lakh crore, reaching a new record high of Rs 912 during the session. The stock initially crossed the Rs 7 lakh crore mark on March 7 this year. Since the beginning of the year, the stock has gained over Rs 3 lakh crore in market capitalization.

“There could be attempts at accelerated reforms in key areas, like electricity and agriculture. Within our top picks, we continue to favour India stories, and we are positive on sectors like infrastructure, cement, private banks, NBFCs, select industrials; negative on IT and chemicals, and neutral on most consumer sectors,” IIFL Securities on markets regarding exit polls.

Shares of Shriram Finance, the flagship company of Shriram Group, surged by up to 7% on Monday following the company’s successful securing of a multi-currency social loan valued at $425 million and €40 million through a syndicated term loan transaction.

According to a Motilal Oswal’s report on exit polls, a victory for PM Modi and the BJP bodes well for the economy and capital markets. The report notes that India is fundamentally experiencing its own mini-Goldilocks moment. Their model portfolio remains aligned with key domestic cyclical themes. They maintain an overweight position on financials, consumption, industrials, real estate, and PSU banks.

Motilal’s top ideas in large caps include ICICI Bank, SBI, L&T, Coal India, M&M, Adani Ports, ABB, HPCL, and Hindalco. In midcaps, their top picks are Indian Hotels, Godrej Properties, Global Health, KEI Industries, PNB Housing, Cello World, and Kirloskar Oil.

“The big takeaway from the 2024 exit polls is that BJP is nearing a Pan India geographical spread instead of just being a Hindi Heartland party. As per exit poll predictions, BJP is unlikely to witness a meaningful anti-incumbency in its stronghold areas, instead could make seat gains in the East, and vote share gains in the South,” said IIFL Securities on exit polls and markets.

Shares of REC jumped 11.7% to hit a fresh 52-week high of Rs 600.65 after the exit polls showed a landslide victory for PM Modi. Similarly, Power Finance Corporation also soared over 13% to hit a new 52-week high of Rs 557.95 on the aforementioned thesis.

Energy and Banking stocks took markets to new highs as exit predicts a one-sided victory for the cumbent government. Reliance, Power Grid Corp, and NTPC major energy stocks to move index higher, while SBI, Axis Bank, and other banking stocks contributed in the movement of Nifty 50.

Courtesy: NSE

The NSE Nifty 50 was up 693 points or 3.08% at 23,224, while the BSE Sensex was up 2,296 points or 3.10% at 76,257.

Kronox Lab Sciences IPO opened on June 03 and wants to raise Rs 130.15 crore by offering its 9.6 million shares. It’s entirely an offer for sale meaning that the company’s promoters and selling shareholders will dump their stake. The company has kept the price band in a range of Rs 129 to 136 per equity share.

“I have witnessed bulls being slaughtered and taken to the cleaners in 2008 and 2009. This time around, a similar fate could await the bears. Most on the street were pessimistic about Modi Ji’s chances or were sitting on the sidelines. Now, very few will have the courage to participate on the upside. People will continue to clamour for a correction, but I believe every dip will be bought into. The month of June could be a defining one for the Bulls, so one should make the most of this opportunity and stay a bit greedy. Last month, I kept saying “BUY THE DIP”; this month’s slogan is going to be “RIDE THE WAVE.” More power to Modi Ji !!!” said Vikram Kasat, Head of Advisory at Prabhudas Lilladher.

“This week we expect a reduction in volatility, technically referred to as a volatility crush. Typically, a market-impacting event leads to an irrational increase in implied volatilities (IVs) of options. This primarily occurs due to the fear and uncertainty surrounding the event’s outcome. High implied volatilities are attractive for option sellers and provide momentum for option buyers. The transition back to a low IV regime is often drastic, making risk management crucial. As the event progresses and certainty sets in, IVs collapse and return to normal levels,” said Sahaj Agarwal, Head of Derivatives Research at Kotak Securities.

Commenting on the derivate market outlook Anand James, Chief Market Strategist,Geojit Financial Services said that Nifty weekly contract has highest open interest at 23000 for Calls and 20200 for Puts while monthly contracts have highest open interest at 24000 for Calls and 20000 for Puts. Highest new OI addition was seen at 24700 for Calls and 20200 for Puts in weekly and at 22500 for Calls and 20000 for Puts in monthly contracts.

James also added that the FIIs increased their future index long position holdings by 20.66%, increased future index shorts by 8.94% and in index options by 80.72% in Call longs, 31.89% in Call short, 78.87% in Put longs and 63.68% in Put shorts.

“We are cutting FY25/26 EPS estimates by 12.5% and 9.9% given the cut in EBIT margin guidance across Jewellery and Watches. Titan is looking at 15-20% topline growth over FY24-27 as it aims to further scale up both Jewellery and watches and increase investment behind emerging segments like Taneira, Titan Eye+, wearables and women’s handbags,” said Prabhudas Lilladher on Titan. “We estimate a 20.2% PAT CAGR over FY24-26. We expect 1H25 performance to remain tepid due to higher gold prices and a weak marriage season, with a strong recovery in 2H25. We expect the back-ended returns and advise accumulation at lower levels for the medium-term gains with a DCF-based target price of Rs3578 (Rs. 3767 earlier).”

Power Grid Corp, Adani Ports and SEZ, NTPC, BPCL, and Adani Enterprises were the top gainers in the Nifty 50. While, Eicher Motors, HDFC Life, LTIMindtree, and Britannia were the major losers in Nifty 50 on June 03.

The sectoral index constituting midcap companies soared 2,000 points to touch a new all-time high of 53,705.30 as NDA may win a third term unopposed or with a full majority as shown in exit polls.

The sectoral index Nifty Bank touched a new lifetime high of 50,990 on June 03 on the back of exit polls giving a landslide victory to NDA.

The VIX slid over 19% to 19.78, a reduction in market uncertainty.. The VIX, or Volatility Index, measures market volatility expectations, reflecting investor sentiment and market risk. This decline also suggests that the option premium are cutting down.

Adani Ports and SEZ, Adani Enterprises, Shriram Finance, Power Grid Cord, and NTPC are the top gainers on NSE Nifty 50 index whereas Eicher Motors remains the only laggard on Nifty 50 index.

The NSE Nifty 50 opens up by 3.58% at 23,337.90, while the BSE Sensex soars 3.51% to 76,583.29 in the opening trade

Commenting on the Pre-open market outlook Prashanth Tapse, Senior VP (Research), Mehta Equities said that Dalal Street is poised for a strong start to June, with Gift Nifty indicating a gap-up (+602, 23343) as bulls eye Nifty’s all-time high of 23,111, driven by optimistic exit poll results predicting a significant win for the BJP-led NDA.

Tapse also adds Key catalysts include India’s GDP exceeding estimates at 8.2% for FY24, a surge in Dow Jones by 574 points, increased odds of a September rate cut, early monsoon advancement, and a 10% rise in GST collections to Rs 1.73 lakh crore in May. With both FIIs and DIIs being net buyers, Nifty and Bank Nifty are set to climb, with targets of 23,111 and 50,000+ respectively.

On stocks to watch Tapse adds Bullish stocks to watch include ADANI PORTS, SUZLON, JUPITER WAGON, GMR INFRA, and HDFC AMC. Suzlon (CMP 47) is recommended for accumulation with long-term targets at 53/59 and an aggressive target of 75.

The GIFT Nifty has surged over 800 points, suggesting a record-high opening for the Nifty 50 today, June 3, driven by exit poll results. The Nifty 50 reached its record high of 23,110.80 on Monday, May 27. However, it experienced profit booking throughout the week, ultimately closing in the green at 22,530.7 on Friday, May 31, which is 580 points below its record high.

Manish Chowdhury, Head of Research at StoxBox believes that “the exit poll outcome will have a positive impact on the markets on Monday.” However, “we may see some ‘sell-on-raise’ patterns due to sudden spikes for profit booking attempts,” said Prashanth Tapse, Senior Vice President of Research at Mehta Equities. Again, long-term investors should continue to remain invested in the markets as the country’s economic growth continued to remain strong over several quarters, resulting in improved fundamentals, said market participants.

“With the actual election outcome mostly a tail risk now, we would not be surprised to see the return of FII flows into the markets which would further aid the strong domestic participation, said Chowdhary of Stoxbox.

Foreign institutional investors (FII) bought shares net worth Rs 1,613.24 crore. Similarly, domestic institutional investors (DII) bought shares net worth Rs 2,114.17 crore on May 31, 2024 according to the provisional data available on the NSE.