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Market slides for 4th day; Nifty ends at 15,938.65

Published on Jul 14, 2022 16:59

The frontline indices ended with minor cuts on Thursday amid negative global cues. After hitting the day`s high of 16,070.85 in morning trade, the index declined as the session progressed and hit the day`s low of 15,858.20 in mid-afternoon trade. Oil & gas, pharma and healthcare shares were in demand. Meanwhile, IT and bank shares dragged.

The barometer index, the S&P BSE Sensex, was down 98 points or 0.18% to 53,416.15. The Nifty 50 index fell 28 points or 0.18% to 15,938.65. The Sensex declined 1.96% and the Nifty fell 1.74% in four straight sessions.

Axis Bank (down 1.74%), HCL Technologies (down 1.53%), Tech Mahindra (down 1.44%) and SBI (down 1.48%) were major drags today.

Sun Pharmaceutical Industries (up 2.28%), Dr Reddy`s Laboratories (up 1.73%), Kotak Mahindra Bank (up 1.50%) and Maruti Suzuki India (up 1.45%) supported the indices.

In the broader market, the S&P BSE Mid-Cap index declined 0.40% while the S&P BSE Small-Cap index fell 0.56%.

The market breadth was negative. On the BSE, 1,382 shares rose and 1,940 shares fell. A total of 140 shares were unchanged.

Domestic equities mirrored weak global shares after the US consumer inflation leapt to a four-decade high of 9.1% in June, adding pressure on the Federal Reserve to adopt a more aggressive monetary policy to tame the red-hot inflation.

Economy:

India`s inflation based on wholesale price index (WPI) stood at 15.18% in June 2022 compared with 12.07% in June 2021.

"The high rate of inflation in June, 2022 is primarily due to rise in prices of mineral oils, food articles, crude petroleum & natural gas, basic metals, chemicals & chemical products, food products etc. as compared to the corresponding month of the previous year," the Ministry of Commerce & Industry said in a statement today.

The WPI grew 15.88% in May 2022, while the figure for April was 15.38%. WPI for the month of July 2022 will release on 16 August 2022.

Meanwhile, the Maharashtra government has reduced the prices of petrol and diesel by Rs 5 per litre and Rs 3 per litre respectively, the state`s chief minister Eknath Shinde said on Thursday, 13 July 2022.

The price of petrol in Mumbai was at Rs 111.35. It will now cost 106.35. Diesel price was at Rs 97.28. It will now cost Rs 94.28.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose to 7.384 as compared with 7.337 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 79.92, compared with its close of 79.81 during the previous trading session.

MCX Gold futures for 5 August 2022 settlement declined 0.90% to Rs 50,347.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, increased 0.59% to 108.59.

In the commodities market, Brent crude for September 2022 settlement fell $2.15 or 2.16% at $97.42 a barrel. The contract rose 8 cents or 0.08% to settle at $99.57 a barrel during the previous trading session.

Global Markets:

The Dow Jones futures were down 421 points, indicating a negative opening in the US stock market today.

European shares declined while Asian shares were mixed on Thursday as global markets digest the latest U.S. inflation data.

Singapore`s central bank tightened its monetary policy on Thursday, in an off-cycle move, saying the action would slow inflation as the city-state joins other countries ramping up their battle against mounting price pressures.

US stocks closed modestly lower on Wednesday as hotter-than-expected US inflation data drove fear the Federal Reserve will raise interest rates even more aggressively to slow price increases, potentially sending the economy into recession.

US inflation accelerated in June by more than forecast. The consumer price index rose 9.1% from a year earlier in a broad-based advance, the largest gain since the end of 1981, Labor Department data showed Wednesday. The widely followed inflation gauge increased 1.3% from a month earlier, the most since 2005, reflecting higher gasoline, shelter and food costs.

Buzzing Segment:

Oil explorers climbed after the media reported that India is considering lowering the recently implemented windfall tax and the meeting to review the measure is expected to take place on Friday. This comes against the backdrop of a fall in global crude oil prices, which has also reduced the super-profits of refiners.

The Nifty Oil & Gas index rose 1.34% to 7,427.70. The index fell 1.65% in the past two sessions.

Adani Total Gas (up 5.87%), Petronet LNG (up 3.7%), HPCL (up 3%), Gujarat State Petroleum Corporation (up 2.46%), ONGC (up 2.25%), GAIL (India) (up 1.35%), Reliance Industries (up 0.9%), Indian Oil Corporation (up 0.64%) and Indraprastha Gas (up 0.21%) jumped.

On 1 July, the government announced export taxes and imposed restrictions on exports of petrol, diesel and aviation turbine fuel (ATF). Similarly, given the sharp surge in oil prices, the government also levied a special additional excise duty (SAED) on the production of crude oil. Domestic producers were asked to pay a cess of Rs 23,250 per tonne on crude oil as a windfall tax.

Stocks in Spotlight:

Bharti Airtel fell 0.23%. The telecom major`s board approved preferential issue of 7,11,76,839 equity shares having face value of Rs 5 each at an issue price of Rs 734 per equity share to Google International LLC. Post allotment, Google will hold 1.20% of the total post-issue equity shares of the company.

Butterfly Gandhimathi Appliances surged 18.28% after the company`s net profit soared to Rs 13.24 crore in Q1 FY23 compared with Rs 0.95 crore in Q1 FY22. Revenue from operations during the quarter rose by 85.68% year on year (YoY) to Rs 253.49 crore.

MindTree fell 3.93% after the company reported 0.3% decline in net profit to Rs 471.6 crore despite a 7.7% rise in revenue to Rs 3,121.1 crore in Q1 FY23 over Q4 FY22. As compared with Q1 FY22, the company`s net profit and revenue are higher by 37.3% and 36.2%, respectively. Employee benefits expense in Q1 FY23 was Rs 1,853.6 crore, up 5.9% QoQ and up 35.6% YoY. The company had a healthy order book of $570 million, up 13.1% in Q1 FY23.

Tata Metaliks gained 1% after the company`s net profit dropped 98.7% to Rs 1.22 crore on 10.5% increase in net sales to Rs 666.37 crore in Q1 FY23 over Q1 FY22.

Hindustan Zinc rallied 4.34% after the company`s board has approved interim dividend of Rs 21 per equity share for the Financial Year 2022-23. The record date is set on 21 July 2022.

Tata Power Company added 0.18%. TP Saurya, a wholly owned subsidiary of Tata Power Company received the Letter of Award (LoA) from Solar Energy Corporation of India (SECI) for setting up a 600 megawatt (MW) hybrid power project in Karnataka. The letter was awarded through tariff-based competitive bidding followed by an e-Reverse auction. The hybrid (wind and solar) power project will be commissioned within 24 months from the power purchase agreement (PPA) execution date.

JSW Energy gained 1.69% after the company said that its wholly owned subsidiary, JSW Neo Energy has received Letter of Award (LoA) for a total wind capacity of 300 MW from Solar Energy Corporation of India (SECI). JSW Neo has won the contract against the tariff-based competitive bid invited by SECI for the setting up of 1200 MW ISTS-connected wind power projects (Tranche - XII).

Welspun Corp shed 0.62%. The company`s associate firm East Pipes Integrated Company for Industry (EPIC), in the Kingdom of Saudi Arabia (KSA), has been awarded with a contract by SWCC for manufacture and supply of steel pipes. The contract is valued at SAR 324 million (approximately) and the same will be executed in this financial year.

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