Barometers sharply pare gains; IT stocks in demand

The domestic equity barometers sharply pared gains in mid-afternoon trade. The Nifty traded below the 16,300 mark. IT stocks advanced for second day in a row.

At 14:27 IST, the barometer index, the S&P BSE Sensex, was up 139.95 points or 0.26% to 54,466.34. The Nifty 50 index added 1.15 points or 0.01% to 16,267.30.

In the broader market, the S&P BSE Mid-Cap index rose 0.27% while the S&P BSE Small-Cap index shed 0.22%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,565 shares rose and 1,801 shares fell. A total of 171 shares were unchanged.

Persisting inflation worries, looming fears of sharp interest rates hikes and worsening the global economic outlook continued to weigh on investors` sentiment.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 7.387% as compared with 7.359% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 77.5800, compared with its close of 77.7000 during the previous trading session.

MCX Gold futures for (3 June 2022) settlement rose 0.46% to Rs 51,062.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, advanced 0.26% to 102.99.

In the commodities market, Brent crude for July 2022 settlement added 61 cents or 0.54% at $113.16 a barrel.

Buzzing Index:

The Nifty IT index rose 1.17% to 29,126.60. The index has added 2.73% in two sessions.

Mphasis (up 2.48%), MindTree (up 2.47%), Larsen & Toubro Infotech (up 2.36%), Coforge (up 2.11%), Infosys (up 1.20%), Tech Mahindra (up 0.92%), L&T Technology Services (up 0.80%), Wipro (up 0.85%) and TCS (up 0.84%) advanced.

Stocks in Spotlight:

Tata Power Company on Monday announced that it has teamed up with Tata Motors for development of a 7 Megawatt peak (MWp) solar rooftop project at Tata Motors` Passenger Vehicle Plant in Pune. This is the third phase of a joint 17 MWp on-site solar project developed by the two companies, of which a 10 MWp has been installed earlier.

Shares of Tata Power Company shed 0.39% while Tata motors advanced 1.14%.

Jyoti Structures was locked in 5% upper circuit. The company has secured contracts from MPSEZ Utilities for turnkey supply and erection of transmission line at Mundra SEZ. The total value of contracts is Rs. 55 crore. The project is to be completed in 4 months.

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