NIFTY TRADES NEAR 17,600; PSU BANK SHARES FALL FOR 2ND DAY

After hitting fresh intraday low, the key equity indices managed to pare some losses and traded tad below the flat line mid-afternoon trade. The Nifty hovered around 17,600 level after hitting the low at 17,584.35. PSU bank stocks declined for second consecutive session.

At 14:26 IST, the barometer index, the S&P BSE Sensex, was down 7.93 points or 0.01% to 59,559.87. The Nifty 50 index lost 14.25 points or 0.08% to 17,604.50.

In the broader market, the S&P BSE Mid-Cap index fell 0.03% while the S&P BSE Small-Cap index advanced 0.16%.

The market breadth was positive. On the BSE, 1,796 shares rose and 1,652 shares fell. A total of 138 shares were unchanged.

Cautiousness among investors was on the rise after strong inflation readings from the UK and Euro Zone cemented expectations of continued rate hikes by the Bank of England and the European Central Bank going forward. Hawkish remarks from Federal Reserve officials exacerbated the likelihood that the American central bank will pause its rate hike cycle as soon as June.

Numbers to track:

The yield on India`s 10-year benchmark federal paper fell 0.07% to 7.222 from its previous closing of 7.227 recorded yesterday.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.1650, compared with its close of 82.2500 during the previous trading session.

MCX Gold futures for 5 June 2023 settlement rose 0.09% to Rs 60,342.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was dwon 0.09% to 101.88.

The United States 10-year bond yield declined 1.05% to 3.564.

In the commodities market, Brent crude for June 2023 settlement declined $1.22 or 1.47% to $81.90 a barrel.

Buzzing Index:

The Nifty PSU Bank index declined 0.54% to 3,898.85. The index declined 1.38% in two trading sessions.

Indian Bank (down 3.05%), Punjab & Sind Bank (down 2.68%), Bank of Maharashtra (down 1.4%), Indian Overseas Bank (down 1.04%) and Central Bank of India (down 0.74%,) Bank of India (down 0.69%), UCO Bank (down 0.55%), Union Bank of India (down 0.28%), Punjab National Bank (down 0.1%) declined.

On the other hand, Canara Bank (up 0.36%),State Bank of India (up 0.1%) was up.

Stocks in Spotlight:

Housing Development Finance Corporation (HDFC) declined 0.18%. The housing finance major said that its subsidiary, HDFC Capital Advisors (HCAL) will acquire an additional 1.8% to 2.4% stake in Loyalie IT-Solutions for Rs 89.81 per compulsorily convertible preferential share, aggregating to Rs 1.49 crore.

Fortis Healthcare fell 0.64%. The company said that it has signed definitive agreement with VPS group for the acquisition of its Medeor Hospital in Manesar, Gurugram, Haryana for lump sum consideration of Rs 225 crore.

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