Indices trade near flat line, Nifty nears 16,600 mark

The domestic equity benchmarks sharply pared losses and traded near the flat line in the afternoon trade. The Nifty traded near the 16,600 mark. Shares of metal, private banks and healthcare companies were in the green while media, consumer durables and PSU banks stocks declined.

At 13:30 IST, the barometer index, S&P BSE Sensex was down 23.52 points or 0.04% to 55,745.71. The Nifty 50 index rose 7.15 points or 0.04% to 16,591.45.

The broader market recovered. The S&P BSE Mid-Cap index was down 0.14% while the S&P BSE Small-Cap index was down 0.46%.

The market breadth was negative. On the BSE, 1,364 shares rose while 1,936 shares fell. A total of 169 shares were unchanged.

Gainers & Losers:

Bajaj Auto (up 4.15%), JSW Steel (up 2.54%), Oil and Natural Gas Corporation (ONGC) (up 1.58%), Tata Consumer Products (up 1.47%) and Cipla (up 1.44%) were major Nifty gainers.

Shree Cement (down 2.28%), Bharat Petroleum Corporation (BPCL) (down 2.12%) and Bajaj Finserv (down 2.04%), Coal India (down 1.6%) and Grasim Industries (down 1.58%) were majority Nifty losers.

Stocks in Spotlight:

Adani Transmission (ATL) advanced 2.05% after the company said that it has signed definitive agreements with Essar Power for acquiring 673 ckt kms operational inter-state transmission project owned and operated by Essar Power Transmission. The enterprise value for the transaction is Rs 1,913 crore. The target asset is an operational 400 kV inter-state transmission line linking Mahan in Madhya Pradesh to Sipat pooling substation in Chhattisgarh with line length of 673 circuit kilometre (ckt kms). The project operates under the Central Electricity Regulatory Commission (CERC) regulated return framework and was commissioned on 22 September 2018.

SpiceJet fell 1.69% after India`s aviation regulator imposed Rs 10 lakh fine on the low-cost air carrier for training pilots on faulty simulator. Spicejet clarified to the bourses that it has 650 pilots trained on MAX aircraft. The Directorate General of Civil Aviation (DGCA) had an observation on the training profile followed for 90 pilots. As per the advise of DGCA, the company restricted these 90 pilots from operating MAX aircraft, until these pilots undergo re-training to the satisfaction of DGCA. This restriction does not impact the operations of MAX aircraft. The company said it has adequate trained pilots available for its operations. Basis the observation of DGCA these 90 pilots shall undergo re-training. DGCA has imposed penalty of Rs 10 lakh basis its audit observations, it added.

Confidence Petroleum India jumped 4.40% after the company said that it had received license for commercial operation of CNG stations at Bangalore. In line with the agreement with Gail Gas for the establishment of 100 CNG stations in the city of Banglore, the company has completed seven CNG stations in Bangalore, received the license for commercial operation for three, and started CNG dispensing. Other upcoming CNG stations are in line and are expected to be operational soon, Confidence Petroleum said in an exchange filing. Separately, the company said that it had bagged an order for the supply of 75 units of CNG mobile and stationary cascades for the BPCL/BGRL city gas distribution project in 17 geographical areas worth Rs 22.80 crore.

Global Markets:

Shares in Europe and Asia advanced on Monday, as international markets gear up for key U.S. data releases, including the latest inflation reading. Market in South Korea is shut for a holiday.

The U.K.`s Prime Minister Boris Johnson will face a vote of confidence later on Monday amid increasing dissatisfaction in his leadership.

China`s Caixin Services Purchasing Managers` Index released Monday came in at 41.4, better than April`s reading of 36.2 but still in contraction territory.

US stocks slid Friday as investors digested a stronger-than-expected jobs report and its implication for monetary policy going forward. The Dow Jones Industrial Average fell 348.58 points, or 1.1%, to 32,899.70. The S&P 500 slipped 1.6% to 4,108.54. The technology-heavy Nasdaq Composite fell nearly 2.5% to 12,012.73.

American employers added 390,000 jobs last month, the government reported Friday. The jobless rate held steady at 3.6% for the third consecutive month.

In the commodities market, Brent crude for August 2022 settlement was up 39 cents or 0.33% at $ 120.11 a barrel. Oil prices jumped after Saudi Arabia raised prices sharply for its crude sales in July.

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