Indices come off day`s high; Nifty holds 15,750 level

The benchmark indices trimmed gains after hitting fresh intraday high in the afternoon trade. The Nifty held the 15,750 level after hitting a high of 15,783.65 in early afternoon trade. Auto, financial services and pharma stocks advanced while metal, oil & gas and realty stocks declined.

At 13:25 IST, the barometer index, the S&P BSE Sensex, was up 58.18 points or 0.11% to 52,751.75. The Nifty 50 index added 20.65 points or 0.13% to 15,752.75.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 0.69% while the S&P BSE Small-Cap index added 0.67%.

The market breadth was strong. On the BSE, 1,963 shares rose and 1,239 shares fell. A total of 133 shares were unchanged.

Volatility persisted in markets across the globe ahead of the US Fed`s decision on interest rates, which will be announced later today. Friday`s red-hot inflation data from the US has raised the market expectations of an interest rate hike by 75 basis points, the largest in 28 years.

Economy:

The Union Cabinet has approved a proposal the Department of Telecommunications (DoT) to conduct 5G spectrum auction to be held by the end of next month.

The spectrum will be assigned to the successful bidders for providing 5G services to public and enterprises.

A total of 72097.85 MHz of spectrum with a validity period of 20 years will be put to auction to be held by the end of July 2022. The auction will be held for spectrum in various Low (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), Mid (3300 MHz) and High (26 GHz) frequency bands.

The auction will be held for spectrum in various low, medium and high frequency bands. It is expected that the spectrum will be utilised by telecom service providers to roll-out of 5G technology-based services capable of providing speed and capacities which would be about 10 times higher than the current 4G services.

The Central Government has nominated Anand Gopal Mahindra, Venu Srinivasan, Pankaj Ramanbhai Patel and Dr Ravindra H. Dholakia as part-time non-official directors on the Central Board of Reserve Bank of India. Anand Gopal Mahindra is the chairman of Mahindra group. Venu Srinivasan is the chairman emeritus of TVS Motor Company. Pankaj Ramanbhai Patel is the chairman of Zydus Lifescience. Ravindra Dholakia is IIM Ahmedabad`s ex-faculty.

In a notification issued on Tuesday, the Central Bank said the appointment will be for a period of four years with effect from 14 June 2022 or until further orders, whichever is earlier.

Gainers & Losers:

Bajaj Finserv (up 4.10%), Grasim (up 2.17%), Tata motors (up 2.15%), Hero MotoCorp (up 2.13%) and Bajaj Finance (up 1.75%) were major Nifty gainers.

NTPC (down 1.55%), ONGC (down 1.41%), Coal India (down 1.07%), Wipro (down 0.95%) and Infosys (down 0.85%) were majority Nifty losers.

Stocks in Spotlight:

Adani Transmission (ATL) rose 1.08% after the company said that its $700 million revolving facility is tagged as green loan by sustainalytics. This is the first of its kind certification of green loan in the transmission sector in the Asia Pacific (APAC) region.

Life Insurance Corporation of India (LIC) advanced 2.69% after the insurance company disclosed that it increased its stake in Hero MotoCorp to 11.256% from 9.163% and in Hindustan Unilever (HUL) to 5.008% from 4.995% earlier.

JSW Steel rose 0.64% after the steel maker`s standalone crude steel production for the month of May 2022 grew 31% year-on-year to 17.89 lakh tonnes as against 13.67 lakh tonnes in May 2021.

G R Infraprojects fell 1.39% after the Central Bureau of Investigation (CBI) registered FIR against the company and its three officials. CBI has registered an First Information Report (FIR) against G R Infraprojects and its three officials, namely Sunil Agarwal, executive director, Dilip Rajput, assistant general manager and Pankaj Singh, dy. manager (structure). The aforesaid officials are presently under arrest. Further, searches were conducted in the matter by the CBI at the corporate office of the company at Gurugram and the residence of the chairman, Vinod Kumar Agarwal on 13 June 2022, which have now been concluded.

Global Markets:

The Dow Futures were up 115 points, indicating a positive opening in the US stocks today.

European stocks advanced across the board while Asian stocks were mixed on Wednesday, as global markets await the latest monetary policy decision from the U.S. Federal Reserve.

China`s industrial output climbed 0.7% in May as compared with a year earlier, official data showed Wednesday, rising from the April`s 2.9% decline. Meanwhile, retail sales in May fell 6.7% year-on-year.

However, as Beijing saw clusters of COVID-19 outbreaks, the Beijing authorities warned on Tuesday that the city was in a "race against time", adding to worries that the resumption of stringent curbs could hurt its economy and global supply chain.

U.S. stock indexes had a mixed Tuesday on fears that red-hot inflation will prompt more aggressive rate increases from the Federal Reserve. The S&P 500 tumbled 0.38% to close at 3,735.48. The Dow Jones Industrial Average dropped 151.91 points, or 0.5%, to settle at 30,364.83. The Nasdaq Composite rose 0.18% to finish at 10,828.35.

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 reportedly forecast 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.

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