Nifty regains 16,400 mark; breadth turns positive

Domestic equity benchmarks bounced and hit the day`s high in the mid-morning trade. The Nifty regained the 16,400 mark after hitting the day`s low of 16,293.35 in morning trade. Shares turned volatile after the RBI announced a hike in the key repo rate by 50 basis points to 4.90%. FMCG, oil & gas and consumer durables were in demand.

At 11:24 IST, the barometer index, the S&P BSE Sensex, was up 117.18 points or 0.21% at 55,224.52. The Nifty 50 index rose 23 points or 0.14% at 16,439.35.

In the broader market, the S&P BSE Mid-Cap index added 0.23% while the S&P BSE Small-Cap index was up 0.16%.

Buyers outpaced sellers. On the BSE, 1,757 shares rose and 1,314 shares fell. A total of 125 shares were unchanged.

Economy:

The Reserve Bank of India (RBI) raised the policy repo rate by 50 basis points to 4.90% after the conclusion of the Monetary Policy Committee (MPC) meeting today, 8 June 2022.

MPC voted unanimously to raise repo rate and decided to change the stance to `withdrawal` from `accomodative`.

Standing Deposit Facility and Marginal Standing Facility rates are also raised by 50 basis points. Standing Deposit Facility rate now stands at 4.65% and Marginal Standing Facility rate now stands at 5.15%.

Buzzing Index:

The Nifty Bank index rose 0.97% to 35,336.15. The index declined 0.89% in the past trading session.

Bank of Baroda (up 2.4%), State Bank of India (up 1.87%), IndusInd Bank (up 1.2%), AU Small Finance Bank (up 1.05%), Federal Bank (up 1.04%), HDFC Bank (up 1.03%), IDFC First Bank (up 1.01%), Punjab National Bank (up 0.96%), Kotak Mahindra Bank (up 0.85%) and Axis Bank (up 0.64%) advanced.

Stocks in Spotlight:

PNB rose 0.80% to Rs 31.45 after the board of Punjab National Bank (PNB) approved the bank`s participation in the proposed rights issue of PNB Housing Finance (PNBHFL) for an amount upto Rs 500 crore, in order to retain bank`s shareholding at 30% or below but above 26%, and to retain its status as promoter.

Hindustan Oil Exploration Company (HOEC) surged 10.51% to Rs 216.10 after the company announced the commencement of oil production and gas sales from Block B-80. Block B-80 is spread over a 56 square kilometer area in Western Offshore and was awarded under the first discovered small field (DSF) bid round 2016 on 27 March 2017.

Global Markets:

Most Asian shares advanced on Wednesday. Japan`s economy shrank an annualized 0.5% in the first quarter, revised government data showed Wednesday.

US stocks rose on Tuesday ahead of Friday`s consumer price index reading for May. The S&P 500 climbed 0.95% to 4,160.68. The Dow Jones Industrial Average gained 264.36 points, or 0.8%, to 33,180.14. The Nasdaq Composite rose 0.94% to 12,175.23.

The World Bank on Tuesday cut its global growth forecast to 2.9% for 2022 and warned of the world economy slipping into a period of stagflation reminiscent of the 1970s.

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