Indices near day`s low; breadth turns negative

The main indices extended losses and traded near the day`s low in mid afternoon trade. The Nifty slipped below 17,700 mark. Barring realty and pharmaceutical stocks, selling pressure was seen across the board.

At 14:30 IST, the S&P BSE Sensex fell 484.63 points or 0.81% at 59,125.15. The Nifty 50 index shed 138.8 points or 0.78% at 17,668.80.

The broader market witnessed profit selling. The S&P BSE Mid-Cap index fell 0.3% while the S&P BSE Small-Cap index slipped 0.58%.

The market breadth turned negative. On the BSE, shares 1,614 rose and 1,768 shares fell. A total of 101 shares were unchanged.

Economy:

Asian Development Bank (ADB) on Wednesday said that South Asian economies are expected to expand collectively by 7% in 2022 and 7.4% in 2023, with India�the sub-region`s largest economy�expected to grow 7.5% this fiscal year and 8% next fiscal year.

ADB said developing Asia`s economies are forecast to grow 5.2% this year and 5.3% in 2023, thanks to a robust recovery in domestic demand and continued expansion in exports. "However, uncertainties stemming from the Russian invasion of Ukraine, the continuing coronavirus disease (COVID-19) pandemic, and tightening by the United States Federal Reserve pose risks to the outlook," ADB Outlook said.

Buzzing Index:

The Nifty Metal index slipped 1.44% to 6,633.1, snapping its four day winning streak. The index saw profit booking after rising 4.7% in four days.

APL Apollo Tubes (down 4.25%), Steel Authority of India (down 2.04%), Tata Steel (down 1.67%), Jindal Steel & Power (down 1.67%) and Coal India (down 1.47%) were the top losers. Among the other losers were Hindalco Industries (down 1.15%), JSW Steel (down 1.15%), NMDC (down 1.13%) and Vedanta (down 0.88%).

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 6.91% from its previous close of 6.917%.

In the foreign exchange market, the rupee was lower against the dollar. The partially convertible rupee was hovering at 75.89, compared with its close of 75.8450 during the previous trading session.

MCX Gold futures for 3 June 2022 settlement rose 0.21% to Rs 51,706.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.12% to 99.733.

In the commodities market, Brent crude for May 2022 settlement rose 5 cents or 0.05% at $101.12 a barrel.

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