Indices decline in early trade on negative global cues

The key equity indices traded with modest losses amid negative global cues in the early trade. The Nifty traded a tad above the 15,700 level. Realty, media and oil & gas stocks advanced while banks and financial services stocks declined.

At 09:23 IST, the barometer index, the S&P BSE Sensex, was down 292.9 points or 0.55% to 52,726.04. The Nifty 50 index fell 79.15 points or 0.50% to 15,701.10.

In the broader market, the S&P BSE Mid-Cap index fell 0.37% while the S&P BSE Small-Cap index lost 0.15%.

The market breadth was positive. On the BSE, 1,221 shares rose and 998 shares fell. A total of 174 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,138.05 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,138.05 crore in the Indian equity market on 30 June, provisional data showed.

Gainers & Losers:

Asian Paints (up 1.07%), BPCL (up 0.65%), Shree Cements (up 0.62%), Tata Steel (up 0.54%) and Tech Mahindra (up 0.45%) were major Nifty gainers.

Titan (down 2.23%), Dr. Reddy`s Laboratories (down 1.97%), Bajaj Auto (down 1.48%), Tata Motors (down 1.14%) and HDFC (down 1.14%) were majority Nifty losers.

Economy:

Index of Eight Core Industries reported a growth of 18.1% in May this year as against the 16.4% in the corresponding month last year. The production of cement, coal, fertilizers, electricity, refinery products, steel, natural gas and crude oil industries increased in May 2022 over the corresponding period of last year.

In May 2022, the cement industry recorded the highest growth of 26.3%. Coal sector jumped by over 25%. Fertilizer climbed 22.8% and electricity grew by 22% and natural gas witnessed growth of 7%. The Eight Core Industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).

Stocks in Spotlight:

Bharti Airtel was down 0.69%. Competition Commission of India (CCI) has approved the proposed investment of Rs. 52,243.80 million (USD 700 million) by Google International LLC in the Company, vide issuance of upto 71,176,839 equity shares of face value of Rs. 5/- each by the Company at a price of Rs. 734/- per equity share.

Lupin fell 0.17%. Global pharma major Lupin announced that it has received approval from the United States Food and Drug Administration (FDA) for its Abbreviated New Drug Application (ANDA), Paliperidone Extended-Release Tablets 1.5 mg, 3 mg, 6 mg, and 9 mg, to market a generic equivalent of Invega Extended-Release Tablets, 1.5 mg, 3 mg, 6 mg, and 9 mg, of Janssen Research and Development, LLC.

UPL rose 0.19%. UPL has acquired 100% holding of Nature Bliss Agro Private Limited (�NBAL�) and accordingly NBAL becomes wholly-owned subsidiary of the company. NBAL proposes to carry out the business of manufacture and sale of crop protection and allied products. The same has synergy with the existing business activities of UPL.

Global markets:

Most of the Asian stocks were trading lower on Friday as investors digested positive factory activity data from a private survey in China. Markets in Hong Kong were closed on Friday for a holiday as the city commemorates the 25th anniversary of its handover from the U.K. to China on Friday.

The Caixin/Markit manufacturing Purchasing Managers` Index for June was released Friday. It came in at 51.7, above the 50-level that separates growth from contraction. That compared to last month`s reading of 48.1.

Sentiment at Japan`s large manufacturers worsened in the April-to-June period, according to the Bank of Japan`s quarterly tankan business sentiment survey. The headline index for large manufacturers` sentiment came in at 9, a decline from the previous quarter`s reading of 14.

Japan`s factory activity growth slowed in June as supply disruptions in part due to China`s strict COVID-19 curbs hurt manufacturers. The final au Jibun Bank Japan Manufacturing purchasing managers` index (PMI) slipped to a seasonally adjusted 52.7 in June from a final 53.3 in the previous month.

U.S. stocks tumbled on Thursday on concerns that central banks determined to tame inflation will hamper global economic growth. Fears over slowing growth and surging prices have rippled through markets, with recession worries taking center stage as monetary policymakers across the world look to aggressively raise borrowing costs.

US consumer spending rose less than expected in May as motor vehicles remained scarce while higher prices forced cutbacks on purchases of other goods. Consumer spending gained 0.2% in May, the smallest rise in five months. Data for April was revised down to show outlays increasing 0.6% instead of 0.9% as previously reported.

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