Sensex corrects 266 pts, Nifty below 16,000 level

The headline equity indices traded with moderate losses in the mid-afternoon trade. The Nifty traded below the crucial 16,000 level after hitting the day`s high of 16,140 in morning trade. Pharma, healthcare and metal shares advanced while banks, financial services and IT stocks corrected.

At 14:30 IST, the barometer index, the S&P BSE Sensex, was down 266.18 points or 0.49% to 53,620.43. The Nifty 50 index fell 61.60 points or 0.38% to 15,996.70.

The broader market outperformed frontline indices, the S&P BSE Mid-Cap index rose 0.52% while the S&P BSE Small-Cap index gained 0.29%.

The market breadth was positive. On the BSE, 1,642 shares rose and 1,621 shares fell. A total of 150 shares were unchanged.

Economy:

India`s factory output, measured in terms of Index of Industrial Production (IIP), witnessed a growth of 19.6% in May 2022. IIP grew 7.1% in April 2022. The manufacturing sector recorded a growth of 20.6% in May. The mining sector rose by 10.9% and the electricity sector climbed 23.5%.

India`s headline retail inflation rate, as measured by the Consumer Price Index (CPI), stood at 7.01% in June 2022 from 7.04% in May 2022, data released on 12 July 2022 by the Ministry of Statistics and Programme Implementation showed.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper fell to 7.364 as compared with 7.391 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 79.6475, compared with its close of 79.59 during the previous trading session.

MCX Gold futures for 5 August 2022 settlement rose 0.04% to Rs 50,754.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, increased 0.08 % to 108.15.

In the commodities market, Brent crude for September 2022 settlement rose $1.13 or 1.14% at $100.62 a barrel.

The Organization of the Petroleum Exporting Countries (OPEC) forecast that world oil demand will rise further next year, but at a slightly slower rate than in 2022, with consumption supported by better containment of the COVID-19 pandemic and still-robust global economic growth.

In a monthly report, the OPEC said it expects world oil demand to rise by 2.7 million barrels per day (bpd) in 2023. This year`s growth forecast was left unchanged at 3.36 million bpd.

Buzzing Index:

The Nifty Bank index fell 0.75% to 34,867.90, extending its losing run to the second trading session. The index declined 1.07% in two trading sessions.

IndusInd Bank (down 5.27%), HDFC Bank (down 2.25%), Bandhan Bank (down 1.63%), AU Small Finance Bank (down 1.26%) and Federal Bank (down 0.81%), ICICI Bank (down 0.65%), Bank of Baroda (down 0.18%) edged lower.

On the other hand, Kotak Mahindra Bank (up 1.23%), Axis Bank (up 0.75%) and State Bank of India (up 0.36%) advanced.

Stocks in Spotlight:

Adani Ports and Special Economic Zone (APSEZ) shed 0.74%. APSEZ said that it had clocked a cargo throughput of 100 MMT in the first 99 days of FY23. The integrated transport utility had hit this record volume on 8 July 2022. The company had reached the 100 MMT cargo throughput in 109 days last year. The milestone is significant as it demonstrates the rapidly improving efficiency of APSEZ, which needed a year to achieve 100 MMT cargo volume FY2014.

RITES rose 0.28% after the PSU company announced that it has signed a memorandum of understanding (MoU) with Centre for Railway Information Systems (CRIS), to explore information technology-based opportunities in the railway sector and new-age areas. With this partnership, the parties will devise smart, intelligent IT solutions for railway operations, apart from modernizing existing technology and telecommunication in the sector.

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