Nifty above 15,900 level, European market advance

The headline equity indices traded near the day`s high with robust gains in the afternoon trade. The Nifty traded a tad above the 15,900 level. All the sectoral indices were in the green with IT, metal and PSU bank stocks recording big gains. Positive global cues boosted sentiment.

At 13:27 IST, the barometer index, the S&P BSE Sensex, was up 666.8 points or 1.26% to 53,394.78. The Nifty 50 index gained 204.90 points or 1.31% to 15,904.15.

In the broader market, the S&P BSE Mid-Cap index rose 1.28% while the S&P BSE Small-Cap index gained 1.83%.

Buyers outnumbered sellers. On the BSE, 2,504 shares rose and 809 shares fell. A total of 165 shares were unchanged.

Maharashtra Crisis:

Rebel Shiv Sena leader Eknath Shinde has moved Supreme Court challenging disqualification notices issued by the deputy speaker of Maharashtra Assembly to 16 rebel Members of Legislative Assembly (MLAs).

Shinde has sought direction to Deputy Speaker to not to take any action against rebel MLAs regarding disqualification under MLA Defection Rules. The petitioner also sought direction to not to take any action against the rebel MLAs until the resolution for removal of the Deputy Speaker is decided. A vacation bench of the apex court will hear Eknath Shinde`s plea against disqualification notice today.

The rebel faction also challenged the appointment of Sena MLA from Mumbai Ajay Choudhari as the Legislature Party leader, and the rejection of their no-confidence motion against Deputy Speaker Narhari Zirwal. The plea also sought direction from concerned authorities to provide security to the family of the Petitioner and all his supporters within the Shiv Sena Legislature Party (SSLP).

Maharashtra has been facing a political crisis after Shinde and rebel MLAs left the state, protesting against the alliance with the Congress and Nationalist Congress Party. The rebel MLAs have been camping in a hotel in Assam`s Guwahati for the past few days. The rebel MLAs` group have claimed that they enjoy a two-thirds majority in the legislature party and will prove its strength in the House. The rebel MLAs have demanded that party president Uddhav Thackeray walk out of the Maha Vikas Aghadi and revive ties with BJP.

Gainers & Losers:

Hindalco Industries (up 4.22%), Tech Mahindra (up 3.42%), HCL Technologies (up 3.34%), UPL (up 3.25%) and Larsen & Toubro (up 2.98%) were major Nifty gainers.

Kotak Mahindra Bank (down 0.67%), Eicher Motors (down 0.39%) and Apollo Hospitals (down 0.15%), Tata Consumer Products (down 0.10%) and HDFC Life Insurance Company (down 0.08%) were majority Nifty losers.

Stocks in Spotlight:

Federal Bank gained 2.52% after the bank said that its board will consider raising funds on Thursday, 30 June 2022. The bank plans raising funds either through rights issue, private placement, preferential issue, further public offer (FPO), qualified institutional placement (QIP), global depository receipts (GDR), American depository receipts (ADR), foreign currency convertible bonds (FCCB) or through any other permissible mode or a combination thereof, and also for determination of issuance amount, as may be appropriate.

Zomato slipped 5.47%. The company said that its board of directors had considered and approved a proposal for the acquisition of quick commerce company Blinkit for Rs 4,447 crore in a share-swap deal. Blink Commerce runs the online quick commerce service under the Blinkit brand. It was formerly known as Grofers. The company`s turnover as at 31 March 2022 was Rs 236.32 crore.

Dr. Reddy`s Laboratories rose 1.19% after the drug maker, along with its subsidiaries, announced that it has acquired a portfolio of branded and generic injectable products from Deer Park, Illinois, based Eton Pharmaceuticals, Inc. Under the terms of the agreement, Dr. Reddy`s acquired the Eton portfolio for an upfront payment of approximately $5 million in cash, plus contingent payments of up to $45 million. The acquisition supports Dr. Reddy`s efforts to accelerate and expand affordable medications for patients.

Global Markets:

The Dow Jones index futures were up 182 points, indicating a positive opening in the US stocks today.

Shares in Europe and Asia rose on Monday amid improved risk sentiment after Wall Street rebounded strongly on Friday as oil prices eased, tempering fears of prolonged inflation and the accompanying aggressive Federal Reserve tightening.

Investors will be looking for more updates from the summit of the Group of Seven leaders. U.S. President Joe Biden joined the leaders of the world`s wealthiest democracies, including Canada, the U.K., Germany, France, Italy and Japan, for the three-day summit beginning Sunday at which Ukraine and the global economy are topping the agenda.

Meanwhile, Russia defaulted on foreign-currency sovereign debt for the first time in more than 100 years, as per reports. The country`s central bank foreign reserves remain frozen.

Wall Street rebounded strongly on Friday as oil prices eased, tempering fears of prolonged inflation and the accompanying aggressive Federal Reserve tightening.

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