The headline equity indices ended a volatile session with modest losses on Monday. The Nifty closed below the 18,800 level after hitting the day's high of 18,881.45 in early trade. PSU bank, IT and healthcare shares were in demand. On the flip side, private bank, media and realty stocks declined.

As per provisional closing data, the barometer index, the S&P BSE Sensex slipped 216.28 points or 0.34% to 63,168.30. The Nifty 50 index declined 70.55 points or 0.37% to 18,755.45.

In the broader market, the S&P BSE Mid-Cap index shed 0.08% while the S&P BSE Small-Cap index added 0.24%.

The market breadth was negative. On the BSE, 1,671 shares rose and 1,984 shares fell. A total of 172 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 3.55% to 11.23.

Economy:

The figures of Direct Tax collections for the Financial Year 2023-24, as on 17 June 2023 show that net collections are at Rs 3,79,760 crore, compared to Rs 3,41,568 crore in the corresponding period of the preceding Financial Year i.e. FY 2022-23, representing an increase of 11.18%. The Net Direct Tax collection of Rs 3,79,760 crore (as on 17 June 2023) include Corporation Tax (CIT) at Rs 1,56,949 crore (net of refund) and Personal Income Tax (PIT) including Securities Transaction Tax(STT) at Rs 2,22,196 crore (net of refund).

Meanwhile, India's overall foreign exchange reserves declined $1.318 billion to $593.749 billion in the week that ended on 9 June 2023, data released by the Reserve Bank of India on Friday showed. India's foreign currency assets, the biggest component of the forex reserves, declined by $1.128 billion to $525.073 billion, data showed. Gold reserves during the week declined by $183 million to $45.374 billion.

Buzzing Index:

The Nifty Private Bank index fell 0.89% to 22,291.10. The index gained 1.29% in the past trading session.

Kotak Mahindra Bank (down 1.81%), Axis Bank (down 1.71%), Bandhan Bank (down 1.69%), ICICI Bank (down 1.23%), IndusInd Bank (down 1%), RBL Bank (down 0.87%), Federal Bank (down 0.44%), IDFC First Bank (down 0.43%), City Union Bank (down 0.24%) declined.

Axis bank declined 1.71%. The private lender on Friday announced that its board has appointed former Reserve Bank of India (RBI) Deputy Governor, NS Vishwanathan as non-executive part-time chairman, for a period of three years. Vishwanathan's appointment is subject to approval of the shareholders of the bank and the RBI. His appointment will be effective from 27 October 2023 or the date of approval of his appointment by Reserve Bank of India for a period of three years, the bank stated in the press release.

Stocks in Spotlight:

Adani Enterprises slipped 3.92% while IRCTC added 0.32%. Adani Digital Labs (ADL), an Adani Enterprises subsidiary, is set to fully acquire Stark Enterprises Private Limited (SEPL), the company behind the online train booking platform, Trainman. The Share Purchase Agreement (SPA) has been signed. The acquisition is not a related party transaction, and no shares are being issued to any parties involved in the transaction.

Indian Railway Catering and Tourism Corporation (IRCTC), the government's online train ticketing platform, has clarified that this acquisition will not alter the existing B2C policy's application. All integrations and operations will continue to be managed through IRCTC, as is currently the case.

Hindustan Petroleum Corporation (HPCL) shed 0.18%. The company has secured a major long-term contract for supply of natural gas to ONGC Petro additions' (OPaL) mega petrochemical complex at Dahej. HPCL has won the contract through competitive bidding against a tender floated by OPaL. It will be supplying 13.53 trillion Btu of natural gas to OPaL during the period of 23 October to 26 May under the contract.

Dr.Reddy's Laboratories (DRL) fell 0.77%. DRL said that US FDA has concluded its GMP inspection at the company's API facility in Bollaram, Hyderabad with zero observations. The inspection was conducted from 12 June 2023 to 16 June 2023. The inspection closed with zero observations.

Grasim Industries lost 0.98%. The company announced that the construction of the first phase of the 100,000 metric tonne chlorinated polyvinyl chloride (CPVC) resin facility in Vilayat, Gujarat, will commence in later part of the year 2023.

Skipper locked in an upper circuit of 20% after the company received cumulative orders from domestic and international markets to design, supply and construct new transmission line projects, aggregating to Rs 1,135 crore.

Lupin shed 0.52%. The drug maker announced the launch of Thiamine Hydrochloride injection multiple-dose vials, after its alliance partner Caplin Steriles received an approval for its ANDA from the United States Food and Drug Administration (USFDA). Thiamine prevents and treats low thiamine levels in the body. It helps maintain the health of heart, nerves, and digestive tract.

Separately, The drug maker announced that it has received the Establishment Inspection Report (EIR) from the US drug regulator for its API manufacturing facility located in Visakhapatnam (Vizag), India. The EIR was issued post the last inspection of the facility conducted from 6 March to 10 March 2023. The inspection closed with the facility receiving an inspection classification of 'No Action Indicated' (NAI).

Som Distilleries & Breweries rallied 4.94% after the company announced that it has commenced trial production of its enhanced capacity at Odisha plant. The distilleries company said that the commencement of the enhanced capacity marks a milestone, as the firm expand its product offerings and increase its production capabilities. The commercial production is expected by early next month, it added.

Manappuram Finance gained 1.68% after the company said that Kerala High Court has quashed FIR filed against the company's promoter V P Nandakumar.

Global Markets:

Markets in Europe and Asia tumbled on Monday as investors looked ahead to China's rate decision and U.S. Federal Reserve Chair Jerome Powell's testimonies for clues on the path ahead.

On the diplomatic front, U.S. Secretary of State Antony Blinken is in Beijing on a diplomatic mission to repair strained ties between the U.S. and China.

U.S. markets will be closed Monday for the Juneteenth holiday. U.S. stocks ended lower on Friday as comments from two Federal Reserve officials curtailed optimism that the central bank is nearing the end of its aggressive interest rate hikes.

Richmond Fed President Tom Barkin said Friday that inflation is still too high and he needs to be convinced it's slowing more quickly before he would back an end to rate increases. Fed Gov. Christopher Waller said on the same day that the fallout from several bank failures in the spring is likely to continue to play a role in the central bank's decision on how much to raise rates.

In U.S. economic data, the University of Michigan reported on Friday that the consumer sentiment index rose in June to a four-month high of 63.9, up from 59.2 in May. Meanwhile, consumer inflation expectations receded for the second consecutive month, falling to 3.3% in June from 4.2% in May.

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