Sensex, Nifty at day`s low; most European shares advance

The key equity barometers extended losses and hit fresh intraday low in afternoon trade. At 13:28 IST, the barometer index, S&P BSE Sensex was down 177.04 points or 0.32% to 55,389.37. The Nifty 50 index fell 56 points or 0.34% to 16,528.55.

In the broader market, the S&P BSE Mid-Cap index shed 0.22% while the S&P BSE Small-Cap index gained 0.52%.

Buyers outpaced sellers. On the BSE, 1,776 shares rose while 1,456 shares fell. A total of 148 shares were unchanged.

Economy:

The seasonally adjusted S&P Global India Manufacturing Purchasing Managers` Index (PMI) stood at 54.6 in May, little-changed from 54.7 in April, pointing to a sustained recovery across the sector. The above-50.0 reading was the eleventh in as many months and consistent with a solid improvement in operating conditions.

India`s GDP growth in Q4 FY22 was at 4.1% year-on-year, compared to a revised growth of 5.4% for Q3 FY22. Gross Value Added (GVA), which excludes the impact of subsidies and indirect taxes, grew 3.9% year-on-year in the fourth quarter.

For the full fiscal year, GDP grew 8.7% year-on-year, compared to a contraction of 6.6% in FY21. GVA for FY22 grew 8.1% year-on-year, compared to a contraction of 4.8% in FY21.

The combined Index of Eight Core Industries stood at 143.2 in April 2022, which is an increase of 8.4% (provisional) as compared to the Index of April 2021. The production of Coal, Electricity, Refinery Products, Fertilizers, Cement and Natural Gas industries increased in April 2022 over the corresponding period of last year. The Eight Core Industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).

Final growth rate of Index of Eight Core Industries for January 2022 is revised to 4.0% from its provisional level 3.7%. The growth rate of ICI during April-March 2021-22 was 10.4% (P) as compared to the corresponding period of last FY.

Stocks in Spotlight:

Eicher Motors losy 0.81%. The company`s unlisted subsidiary, VE Commercial Vehicles (VECV) sold 5,637 units of commercial vehicles in May 2022, up 360.9% YoY. VECV had sold 1,223 units of commercial vehicles (CV) in May 2021.

Tata Motors shed 0.46%. The cmpany said that the company`s sales in the domestic & international market for May 2022 stood at 76,210 units, which is higher by 186% as compared to 26,661 units sold during May 2021.

Coal India (CIL) rose 0.98%. CIL recorded 30% growth in output in May 2022. The company produced 54.7 million tonnes (MTs) of coal during the month as compared to 42.1 MTs in May 2021. The company`s total off-take for May 2022 was 61.2 MTs as compared to 55 MTs of previous year`s May, achieving a growth 11.3% on YoY basis.

Global Markets:

Most shares in Europe advanced while Asian indices were mixed on Wednesday as investors continue to assess new data on inflation and economic activity.

Euro zone inflation hit an annual 8.1% in May, marking a seventh consecutive record high. Investors are closely watching the European Central Bank for hints at the pace and scale of interest rate hikes required to rein in consumer prices.

Fresh data on Wednesday will include May`s manufacturing PMI (purchasing managers` index) readings from the euro zone and the U.K.

China`s Caixin/Markit manufacturing Purchasing Managers` Index for May came in at 48.1 on Wednesday, an improvement over April`s reading of 46 but still remaining below the 50-level mark that separates expansion from contraction.

Meanwhile, Bank of Japan Deputy Gov. Masazumi Wakatabe said Wednesday that both monetary easing and fiscal expansion would be needed to tackle higher commodity prices and Japan`s low inflation at the same time.

The deputy governor also said medium- to long-term inflation is still expected to rise only moderately in Japan, where he believes there are "scarring effects of prolonged deflation."

U.S. stocks closed lower Tuesday, as Treasury yields pushed higher following last week`s equity market bounce after a historic string of weekly losses. The S&P 500 shed 0.63% to 4,132.15. The Dow Jones Industrial Average dropped 222.84 points, or 0.67%, to 32,990.12. The tech-heavy Nasdaq Composite dipped 0.41% to 12,081.39.

In the commodities market, Brent crude for August 2022 settlement was up 17 cents or 0.15% at $115.77 a barrel. The gains came after European Union leaders agreed to a partial and phased ban on Russian oil and China ended its COVID-19 lockdown in Shanghai.

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