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Sensex slides 178 pts after RBI hikes rates; breadth turns negative

Published on Jun 08, 2022 10:34

Benchmark indices traded with modest losses in the morning trade after the RBI announced a hike in the key repo rate by 50 basis points to 4.90%. Realty, media and PSU banks rose whereas FMCG, healthcare and auto shares corrected. The Nifty was trading above the 16,350 mark.

At 10:25 IST, the barometer index, the S&P BSE Sensex, was down 178.09 points or 0.32% at 54,929.25. The Nifty 50 index fell 50.40 points or 0.31% at 16,365.95.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index lost 0.15% while the S&P BSE Small-Cap index was up by 0.02%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,528 shares rose and 1,381 shares fell. A total of 146 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,293.98 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,311.14 crore in the Indian equity market on 7 June 2022, provisional data showed.

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 stand at 4.65% and Marginal Standing Facility rate now stands at 5.15%.

Buzzing Index:

The Nifty Media index rose 1.10% to 1,993.20, snapping its three-day losing run. The index declined 4.29% in three trading sessions.

Among the components of the Nifty Media index, TV18 Broadcast (up 1.6%), Hathway Cable & Datacom (up 1.43%), Zee Entertainment Enterprises (up 0.9%), Dish TV India (up 0.39%) and Sun TV Network (up 0.27%) were the top gainers.

Stocks in Spotlight:

Indian Hotels Company (IHCL) declined 1.04% to Rs 228.70. The company on Tuesday announced the signing of a Vivanta hotel in Jammu, Jammu and Kashmir (J&K). Located in the heart of the city, the existing hotel will be upgraded into the Vivanta brand post renovation. This is a management contract with the KC Group. The hotel is slated to open at the end of 2022 after completing renovation.

RITES rose 0.86% to Rs 247.20. The construction company after trading hours yesterday said that it has signed a memorandum of understanding (MoU) with Grands Trains DU Senegal for technical cooperation in the railway sector. Grands Trains DU Senegal is a railroad company of Senegal. The MoU also facilitates RITES to offer its services for the operation and maintenance of the railway network and sidings.

Adani Power fell 0.14% to Rs 290.80. The company on Tuesday announced that it signed share purchase agreements to acquire 100% equity shares of two infrastructure development companies, Support Properties (SPPL) and Eternus Real Estate (EREPL). The total cash consideration to acquire SPPL is Rs 280.10 crore, while EREPL will be acquired at an aggregate equity value of Rs 329.30 crore. The company said that the transaction is expected to be completed in two weeks.

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