Barometers come off day`s high, broader market trades firm

The key equity indices came off the day`s high and traded with modest gains in early afternoon trade. The Nifty traded above 15,750 mark. Value buying emerged after the Nifty slumped 4.27% in the past two sessions. Private banks, autos and metal shares were in demand. However, oil & gas and PSU banks shares declined.

At 12:22 IST, the barometer index, the S&P BSE Sensex, was up 71.61 points or 0.14% to 52,918.31. The Nifty 50 index added 9.10 points or 0.05% to 15,783.50.

The broader market was trading higher. The S&P BSE Mid-Cap index rose 0.32% while the S&P BSE Small-Cap index added 0.19%.

The market breadth was positive. On the BSE, 1,878 shares rose and 1,317 shares fell. A total of 113 shares were unchanged.

While easing domestic inflation in May gave some hope to investors, recession fears in the US continued to loom large ahead of the US Fed`s policy outcome due on Wednesday.

A major foreign brokerage has reported forecasted a 75-basis point (bp) interest rate hike from the Fed`s June policy meeting on Wednesday. A 75-bp hike would reportedly be the biggest since 1994.

Derivatives:

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, fell 1.65% to 21.9950. The Nifty 30 June 2022 futures were trading at 15,827, at a premium of 43.5 points as compared with the spot at 15,783.50.

The Nifty option chain for 30 June 2022expiry showed maximum Call OI of 24.7 lakh contracts at the 17,000 strike price. Maximum Put OI of 33.3 lakh contracts was seen at 16,000 strike price.

Economy:

India retail inflation eased to 7.04% in May, mainly on account of softening food prices, though it remained above the RBI`s upper tolerance level for the fifth consecutive month, government data showed on Monday. The Consumer Price Index (CPI) based inflation was 7.79% in April. In May 2021, the retail inflation stood at 6.3%.

Buzzing Index:

The Nifty IT index rose 0.71% to 28,113.05. The index saw bargain hunting after declining more than 5% in past two trading session.

Among the components of the Nifty IT index, Larsen & Toubro Infotech (up 2.47%), L&T Technology Services (up 2.32%), Mindtree (up 1.66%), Wipro (up 1.3%), Infosys (up 1.3%), Tata Consultancy Services (up 0.48%) and HCL Technologies (up 0.33%) advanced.

On the other hand, Mphasis (down 0.85%), Tech Mahindra (down 0.82%) and Coforge (down 0.3%) edged lower.

Stocks in Spotlight:

Adani Enterprises (AEL) rallied 5.54% after Adani Group and TotalEnergies have entered into a new partnership to jointly create the world`s largest green hydrogen ecosystem. In this strategic alliance, TotalEnergies will acquire 25% minority interest in Adani New Industries (ANIL) from AEL.

ANIL`s ambition is to invest over USD 50 billion over the next 10 years in green hydrogen and associated ecosystem. In the initial phase, ANIL will develop green hydrogen production capacity of 1 million ton per annum before 2030.

Dr.Reddy`s Laboratories rose 1.06% after the drug major announced the launch of Sorafenib tablets, a generic equivalent of Nexavar tablets in the U.S. market as approved by the United States Food and Drug Administration (USFDA). Sorafenib is used to treat late-stage kidney cancer (advanced renal cell carcinoma), liver cancer (hepatocellular carcinoma) that cannot be treated by surgery, and differentiated thyroid cancer that has come back or spread to other parts of your body. Sorafenib is an antineoplastic (cancer) agent.

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