Barometers trade almost flat; Nifty above 16,500 level

The domestic equity barometers were hovering near the flat line in the early trade on Thursday. The Nifty was trading above 16,500 level. Shares of IT, PSU banks and oil & gas were in the green while financial services, banks and autos corrected. Negative global cues dented investors sentiment.

At 09:28 IST, the barometer index, S&P BSE Sensex was up 25.72 points or 0.05% to 55,406.89. The Nifty 50 index fell 7.50 points or 0.04% to 16,515.25.

In the broader market, the S&P BSE Mid-Cap index fell 0.13% while the S&P BSE Small-Cap index gained 0.40%.

The market breadth was strong. On the BSE, 1,514 shares rose while 929 shares fell. A total of 120 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,930.16 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 984.11 crore in the Indian equity market on 1 June 2022, provisional data showed.

Stocks in Spotlight:

Cipla rose 0.86%. The drug major announced the commercial operation of additional capacity of captive renewable energy power plant in Maharashtra & Karnataka. In Jan`21, Cipla had commissioned 30 MWp solar project at Tuljapur, and now further added 16 MWp of solar capacity for supplying the renewable energy for its manufacturing units/ facilities in Maharashtra. In Karnataka wind solar hybrid captive power plant with capacity as 9 MWp solar + 2.7 MVA of wind has been commissioned in partnership with CleanMax Enviro Energy Solution

Greaves Cotton rallied 9% after the company announced that Abdul Latif Jameel International DMCC will infuse $150 million (Rs 1160 crore) for 35.8% stake in company`s wholly owned subsidiary, Greaves Electric Mobility ("GEMPL"). GEMPL has the right to secure additional funding of $70 million from investor over the next 12 months. Post money equity value for Greaves Electric Mobility stands at $419 million or Rs 3238 crore. Greaves Cotton market cap stand at Rs 3745 crore. Greaves Electric will continue to remain subsidiary of Greaves Cotton even after both the rounds of fund infusion.

Vedanta rose 0.62%. The miner proposes to offer rated, secured, redeemable, non-cumulative, non-convertible debentures aggregating upto Rs 4,100 crore in one or more tranches. In this regard, a duly constituted committee of the directors will meet on Saturday, 4 June 2022.

Reliance Industries rose 0.93%. Reliance Brands (RBL) and Plastic Legno SPA have signed a joint venture arrangement through which RBL will acquire a 40% stake in Plastic Legno SPA`s toy manufacturing business in India. This investment by RBL serves a dual purpose, bringing in vertical integration for RBL`s toy business and helping diversify the supply chain with a long-term strategic interest in building toy manufacturing in India.

Balaji Amines advanced 2.92%. The board approved fund raising by way of an IPO in material subsidiary, Balaji Speciality Chemicals. The issue will include fresh issue of equity shares aggregating up to Rs 250 crore. Balaji Speciality Chemicals makes unique products like Ethylenediamine (EDA), Piperazine (Anhydrous), Diethylene Triamine (DETA) & Aminoethyliperazine (AEP).

Global Markets:

The US Dow Jones index futures were down 22 points, indicating a negative opening in the US stocks today.

Most of the Asian shares declined on Thursday, amid worries over high inflation and the threat of recession.

US stocks started June with declines amid choppy trading. The Dow shed 176.89 points, or 0.54%. The S&P 500 fell 0.75%, and the Nasdaq Composite retreated 0.72%.

The number of April job openings, released Wednesday, declined sharply from the previous month � but the findings suggest the job market remains tight. Further, the Institute for Supply Management said its manufacturing PMI came in at 56.1 for May, up from 55.4 the month before.

In the commodities market, Brent crude for August 2022 settlement was down $1.90 or 1.63% at $ 114.39 a barrel. The losses came after the media reported Saudi Arabia is ready to pump more oil if Russian output declines.

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