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Market drops for 4th day, Nifty ends below 15,700

Published on Jun 15, 2022 17:10

The key equity barometers ended with small losses after a volatile session on Wednesday, extending its losing streak to fourth session. The Nifty closed below the 15,700 level after hitting a high of 15,783.65 in early afternoon trade. Auto, financials, and pharma stocks advanced while metal, oil & gas, and realty stocks declined.

The barometer index, the S&P BSE Sensex, declined 152.18 points or 0.29% to 52,541.39. The Nifty 50 index lost 39.95 points or 0.25% to 15,692.15. The Nifty has fallen 4.77% in four sessions.

NTPC (down 2.02%), Infosys (down 1.29%), Reliance Industries (down 1.18%) and Wipro (down 1.07%) were major drags today.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 0.52% while the S&P BSE Small-Cap index added 0.49%.

The market breadth was positive. On the BSE, 1,746 shares rose and 1,561 shares fell. A total of 135 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, advanced 1.18% to 22.15.

Global stocks were volatile ahead of the US Fed`s decision on interest rates 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:

India`s May trade deficit widened to $24.29 billion from $6.53 billion a year ago, a government statement said on Wednesday. May`s trade deficit was pushed up by a surge in imports, which rose 62.83% year-on-year to $63.22 billion, while exports rose 20.55% to $38.94 billion, revised trade data released by the Ministry of Commerce and Industry showed.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper rose to 7.592 as compared with 7.581 at close in the previous trading session.

In the foreign exchange market, the rupee was lower against the dollar. The partially convertible rupee was hovering at 78.1775, compared with its close of 78.0450 during the previous trading session.

MCX Gold futures for 5 August 2022 settlement rose 0.74% to Rs 50,566.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, decreased 0.62% to 104.86.

In the commodities market, Brent crude for August 2022 settlement fell $1.45 or 1.20% at $119.72 a barrel. The contract fell $1.1 or 0.90% to settle at $121.17 a barrel during the previous trading session.

Foreign Markets:

The Dow Futures were up 153 points, indicating a positive opening in the US stocks today.

European stocks advanced across the board while Asian markets ended mixed on Wednesday, as the investor community awaits 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.

Buzzing Index:

The Nifty Auto index rose 0.92% to 11,206.75. The index declined 2.76% in the past three sessions.

Tube Investments of India (up 2.33%), Tata Motors (up 1.93%), Balkrishna Industries (up 1.55%), Escorts (up 1.11%), Bosch (up 0.54%), Ashok Leyland (up 0.45%), Maruti Suzuki India (up 0.36%), Bharat Forge (up 0.31%), MRF (up 0.29%), Mahindra & Mahindra (up 0.27%) and TVS Motor Co (up 0.15%) advanced.

Bajaj Auto rose 0.18%. The company said that Shekhar Bajaj has tendered his resignation as non-executive director of the company due to health reasons.

Hero MotoCorp rose 1.78%. Life Insurance Corporation of India (LIC) disclosed that it increased its stake in Hero MotoCorp to 11.256% from 9.163% earlier. LIC bought 41,81,338 shares, or 2.093% equity, of Hero MotoCorp at an average cost of Rs 3050.14 via open market purchase during the period from 4 January 2021 to 13 June 2022.

Stocks in Spotlight:

JSW Steel rose 0.30%. 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.

Asian Paints advanced 0.76%. The company has subscribed to 51% of the equity share capital of Weatherseal Fenestration comprising of 10,409 equity shares of Rs 10 each at a premium of Rs 18,091 per share, issued on a preferential basis for an aggregate cash consideration of Rs 18.84 crore. Accordingly, Weatherseal Fenestration is now a subsidiary of the company.

Cipla added 0.51%. The drug major received South African Health Products Regulatory Authority (SAHPRA) approval to launch a 4-in-1 fixed-dose combination of four antiretroviral (ARV) treatments for infants and young children with HIV in South Africa.

Engineers India rose 1.53%. The company has been engaged as Project Management consultant (PMC) by Neyveli Lignite Corporation for its landmark Lignite to Methanol project, first of its kind in India.

PNB Housing Finance lost 0.55%. The company`s board of directors approved the issuance of non-convertible debentures aggregating up to Rs 2,000 crore on a private placement basis.

Sukhjit Starch & Chemicals jumped 7.25%. The company has successfully commissioned Hydrogen Generating Plant from Biogas produced from biomass/ process effluent at its new manufacturing unit commissioned at Phagwara (Punjab).

Genesys International Corporation hit an upper circuit of 5% at Rs 584.30. The company received an investment of Rs 250 crore equity led by Malabar India Fund and other marquee investors. The funds have been raised for accelerating the company`s 3D digital twin content program.

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